Under the corporate philosophy "Dedicated to the Fight against Disease and Pain,” ONO group contributes to the realization of a sustainable and prosperous society by creating innovative medicines and working on solving environmental issues such as climate change.

ONO has established a medium- and long-term environmental challenge vision for 2050, named “Environmental Challenge Ono Vision (ECO VISION 2050)” to realize a sustainable society.

Background for the establishment of vision

In recent years, the global environmental issues including climate change and other issues have become serious. In the future of 2050, it is expected that people's healthy and sound life will be threatened due to various threats such as water and food shortages, increase of new diseases, devastating natural disasters and so on.
In order to promote the creation of a healthy and sound society through the discovery and development of innovative pharmaceutical products under the corporate philosophy to be "Dedicated to the Fight against Disease and Pain", it is important that we recognize that our business activities are supported by a sound global environment and that we will strengthen our activities toward the resolution of environmental challenge. We believe that such activities are not only our corporate responsibility for the environment, but also lead to build the foundation for sustainable business activities.
We will challenge to reduce the environmental burden in anticipation of 2050 based on the ECO VISION 2050 so that people can welcome a healthy and sound society.

To realize "ECO VISION 2050," we have set 3 priority items: "Realization of a decarbonized society," "Realization of a water recycling society," and "Realization of a resource recycling society," and have set specific medium-to long-term targets for greenhouse gas, water, and waste in 2019. We have also set annual targets.

Greenhouse gas

medium-to long-term targets and fiscal year targets

Our medium- to long-term greenhouse gas reduction targets are classified by the SBTi as the most ambitious "1.5 °C target." For more information, please see here (Environmental Initiatives). As for energy, we will increase the use of renewable energy in line with the RE100 target that we joined in June 2020.

Results (progress) against targets

• * Items marked with [ECO VISION 2050] are concrete medium-to long-term targets set to realize the medium-to long-term environmental vision of ECO VISION 2050.

Water

medium-to long-term targets and fiscal year targets

1. Reduce water resource consumption (water intake) per production volume unit by 15% in FY2030. <compared to FY2017>
2. Reduce water resource consumption (water intake) below the previous year. <FY target>

Results (progress) against targets

• * Items marked with [ECO VISION 2050] are concrete medium-to long-term targets set to realize the medium-to long-term environmental vision of ECO VISION 2050.

Waste

medium-to long-term targets and fiscal year targets

1. Maintain the final landfill disposal rate of industrial waste 1% or less every year.
   • * Defining the ratio of non-recycling (landfill and simple incineration) to less than 1% of the total amount as a standard of our “zero emission.”
2. Reduce the volume of industrial waste per production volume unit by 15% in FY2030. <compared to FY2017>
3. Promote reduction of environmental impact through business activities.
4. Reduce the volume of industrial waste below the previous year. <FY target>

Results (progress) against targets

• * Items marked with [ECO VISION 2050] are concrete medium-to long-term targets set to realize the medium-to long-term environmental vision of ECO VISION 2050.

Disclosure of climate change-related information (in line with TCFD recommendations)

The realization of a decarbonized society is one of our key priorities in our business activities, and we are undertaking various company-wide initiatives toward this end. Regarding the risks and opportunities associated with climate change, we expressed our support in October 2019 for the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD)(click here for details). The TCFD is a task force established by the Financial Stability Board (TSB) to help companies understand and disclose the financial impact of climate change on their business. In June 2017, the TCFD announced its recommendations on how companies should detail climate-related impacts in their financial reports. In accordance with the TCFD recommendations, we will evaluate and manage climate change-related risks and opportunities and disclose information appropriately.

Governance

We appoint a corporate officer in charge of the environment as the officer responsible for climate change issues. The officer serves as the chairperson of the Environmental Management Committee, which meets at least once a quarter to discuss climate change issues. The officer, who also serves as the chairperson of the CSR Committee and a member of the Management Meeting, presents a report at least once a half year on the results of the Environmental Management Committee’s activities to the CSR Committee and the Management Meeting for discussion. The results of discussions at the CSR Committee and the Management Meeting are reported by the officer at the Board of Directors’ meeting and shared with all directors more than once a year.

In FY2019, the TCFD Study Working Group was established, which considered issues related to the identification and evaluation of climate change-related risks/opportunities and countermeasures. The identified risks and opportunities are reviewed by the TCFD Working Group on a yearly basis. The TCFD Working Group, which is headed by the corporate officer in charge of the environment, is joined by the heads of major relevant departments (Finance and Corporate Strategy & Planning) and the head of Risk Management Office in order to integrate climate-related issues into our business strategy.

We also joined the TCFD Consortium, which is a platform for companies, financial institutions, etc. expressing support for the TCFD recommendations to discuss initiatives for effective disclosure of information and utilization of disclosed information for appropriate investment decisions by financial institutions. In FY2020, we participated in small-scale round table dialogue sessions with institutional investors hosted by the TCFD Consortium.

Strategy
—Analysis and evaluation of risks and opportunities related to climate change—

Analysis and evaluation of climate change-related risks and opportunities were performed using the 1.5°C and 4°C scenarios, under the leadership of the TCFD Study Working Group. In FY2020, we reviewed the amount of financial impact of physical risks^*2 based on changes in our product structure, suppliers, etc. Meanwhile, the amount of financial impact of transition risks^*3 was not revised since there were no specific changes in assumptions of calculation. Our analysis revealed no financially significant risks in both the 1.5°C and 4°C scenarios. We will continue to check trends in the international community and closely monitor the impact of risks and opportunities that may have a relatively material financial impact.

• *2 Physical risks: Acute or chronic damage due to disasters, etc. caused by climate change with decarbonization policy not clearly defined
• *3 Transition risks: Risk resulting from enhancement of decarbonization policy on a global scale (e.g. climate change policy/regulation, technology development, market trend, changes in evaluation in the market)

<Risks related to climate change>

• Financial impact is the maximum value during the period from 2020 to 2030 in the 1.5°C or 4°C scenario (Regulatory risk is cumulative.)

Mitigationmeasures to reduce emissions of greenhouse gases that cause climate change, Adaptationmeasures to prevent or mitigate damage caused by the effects of climate change that have already occurred (or are expected to occur in the future).

<Opportunities related to climate change>

• Financial impact is the maximum value during the period from 2020 to 2030 in the 1.5°C or 4°C scenario (Opportunity from resource efficiency is cumulative.)

＜Analysis method＞

Selection of climate change scenario

Analysis and evaluation were performed using the 1.5°C and 4°C scenarios in which progress toward a decarbonized society and intensification of global warming are projected, respectively.

• * For the 1.5°C scenario, the “Sustainable Development Scenario” developed by the International Energy Agency (IEA) was used; for the 4°C scenario, the “RCP 8.5 Scenario” (one of the Representative Concentration Pathways [RCP] scenarios, where global average temperature is predicted to increase by approximately 4°C by 2100) developed by the Intergovernmental Panel on Climate Change (IPCC), the “Stated Policies Scenario” of the IEA, etc. were used.

[Concept of climate change scenarios]

(Prepared by ONO based [Global average surface temperature change] of “Climate Change 2013: The Physical Science Basis – Summary for Policymakers” [IPCC, 2013, page 19])

Rationale for scenario selection

• The RCP 8.5 scenario is one of the Representative Concentration Pathways (RCP) scenarios developed by the Intergovernmental Panel on Climate Change (IPCC), where global average temperature is predicted to increase by approximately 4°C by 2100. Since this scenario has widely been used as a 4°C scenario globally, it was selected as one of our 4°C scenarios.
• The Sustainable Development Scenario is one of the scenarios referred to in the “World Energy Outlook (WEO),” the flagship publication of the International Energy Agency (IEA) which is widely recognized as the most trusted information source of global energy forecast and analysis. The Sustainable Development Scenario is fully aligned with the Paris Agreement that aims to hold the increase in the global average temperature to well below 2°C or possibly 1.5°C. Since the Sustainable Development Scenario is in line with our 1.5°C target, it was selected as our 1.5°C scenario.

Scope of analysis and key points

• The scope of analysis includes our domestic plants and contract manufacturers, suppliers, investors, customers, recruitment, etc. at home and abroad. The target period and area are FY2020-2030 and the pharmaceutical manufacturing industry, which is our major business, respectively.

Risk and opportunity management

The risk/opportunity identification process involves identifying potential risks and opportunities and analyzing each risk and opportunity in terms of the timing and probability of occurrence and the extent of the consequences. We determine the priorities for risks comprehensively by also evaluating risk mitigation measures. We prioritize and identify risks that would have a high impact on our business, those that have a high probability of occurrence, and those whose measures have high cost effectiveness. These risks are managed effectively by the Environment Management Committee. Regarding the identified risks, the Company-Wide Risk Management Committee discusses and develops measures and presents them to the Management Meeting for approval. The measures approved by the Management Meeting are communicated to the responsible persons at production sites and research institutes, who will then implement the measures at their respective organizations. The risks are thus managed in a systematic and comprehensive manner. The impacts of risks and opportunities are reviewed each year, and the risk and opportunity management status is reported to the CSR Committee and the Management Meeting.

Indicators and targets

We have created a road map to achieve the greenhouse gas emission reduction targets based on our medium- to long-term environmental vision. We discuss measures to be taken to achieve the targets and estimate the costs. Our medium- to long-term greenhouse gas reduction targets have been approved as science-based by the international initiative “Science Based Targets initiative (SBTi)^*5.” For Scope 1+2, our targets are classified by SBTi as the strictest, “1.5°C target.” To achieve our medium- to long-term targets, we set a single-year target and evaluate the results (progress) against the target (FY2020 target: at least a 12.6% reduction compared to FY2017). We also calculate greenhouse gas emissions across the entire value chain (Scope 3). Since FY2014, we have calculated greenhouse gas emissions for our business sites in Japan by dividing Scope 3 emissions into 15 categories, in accordance with the guidelines of the Ministry of the Environment.
As for water risks, we conduct risk assessment once a year. Recognizing water risks as “disaster/climate change risks” among the company-wide risks, we implement measures based on our business continuity plan (BCP), including maintaining a proper stock. In the future, we will also work to establish a collaborative relationship with our business partners, to secure multiple suppliers, and to consider the impact of flood/shortage of water due to climate change in our business partner selection process.

• * Details on risks/opportunities regarding climate change, as well as greenhouse gas emissions are described in our CDP Climate Change’s response (Japanese only). These can be confirmed at the CDP website (CDP ID required).

• *5 SBTi: An international initiative that prompts private corporations and other types of organizations set science-based greenhouse gas emission reduction targets in accordance with the Paris Agreement

Carbon Pricing

We have incorporated carbon pricing^*6 into our environment-related investment decisions. We review and implement carbon pricing on a periodic basis.

• *6 Carbon pricing: To put a price on greenhouse gas emissions from facilities that is incorporated in management decisions in order to promote decarbonization of activities

Progress towards a decarbonized society

For the targets and progress, please click here.

As for the results (progress) against the greenhouse gas (GHG) emission reduction targets established based on our medium- to long-term environmental vision, our Scopes 1 and 2 GHG emissions (on a market basis^*7) for FY2020 were reduced by 12.6% against the reduction target of 12.6% or more compared to FY2017 (FY2017, 29.8 kt-CO₂; FY2020, 26.1kt-CO₂). Meanwhile, our Scope 3 GHG emissions were reduced by 27.6% compared to FY2017 (FY2017, 75.1kt-CO₂; FY2019, 54.4kt-CO₂).
Regarding the use of renewable energy, in line with the RE100^*8 international initiative (we joined in June 2020), we worked to promote the use of renewable energy and attained the share of renewable energy in total electricity consumption of 13.2%, thereby achieving the FY2020 target (increasing the share by at least 12.6%).

• Regarding Scope 3 emissions, figures were calculated based on FY2019 emissions because the FY2020 data for our major business partners have not been published at the time of calculation.

• *7 Market basis: GHG emissions calculated using the emission factors released by each electric power company
• *8 RE100: An international initiative which aims to have companies utilize 100% renewable energy for electricity used in their operations

Progress towards a decarbonized society (data)

GHG emissions (Scopes 1+2)

• * Sites where data on GHG emissions were collected: Fujiyama Plant, Joto Pharmaceutical Product Development Center, Yamaguchi Plant (added from FY2018), Minase Research Institute, Fukui Research Institute, Tsukuba Research Institute, Head Office, sales offices and other offices, etc.
  GHG emissions are calculated using the following formula.
  GHG emissions = Purchased electricity × adjusted emission factor published by the electric company + Σ (Fuel consumption × Unit calorific value × Carbon emission factor × 44/12)+Σ (Fluorocarbon leakage amount x global warming potential)
  The amount of green electric power certified under the Green Energy Certificate and renewable energy certified under J-Credit Scheme are deducted.
   

Breakdown of GHG emissions by scope (Market-basis)

Breakdown of Scope 1 by GHG type

• * GHG types are based on the Greenhouse Gas Emissions Accounting, Reporting, and Disclosure System of the Act on Promotion of Global Warming Countermeasures.

Energy consumption

• * Sites where energy consumption data were collected: Fujiyama Plant, Joto Pharmaceutical Product Development Center, Yamaguchi Plant (added from FY2018), Minase Research Institute, Fukui Research Institute, Tsukuba Research Institute, Head Office, sales offices and other offices, etc.

Electricity consumption and Renewable energy utilization rate

Initiatives for a decarbonized society

Creating a road map for reduction of GHG emissions

• Participation in the “FY2019 Model Project for Supporting Development of CO₂ Emission Reduction Plans to Achieve SBT” (sponsored by the Ministry of the Environment of Japan)
  As of the end of March 2021, there were only thirty Japanese companies whose GHG reduction targets were classified as the SBTi’s “1.5°C target.” To achieve our challenging GHG reduction targets, we have participated in the “FY2019 Model Project for Supporting Development of CO₂ Emission Reduction Plans to Achieve SBT” (sponsored by the Ministry of the Environment of Japan) and created a highly feasible GHG emission reduction road map, incorporating new technologies based on the research and advice of experts.
• Discussion on GHG emissions reduction policy
  In FY2020, we took a closer look at our GHG emissions reduction policy. Specifically, the priority order of our measures was defined as promotion of energy-saving activities, installation of renewable energy facilities, procurement of carbon-neutral energy, and credit utilization. Consequently, it was decided to raise the procurement ratio of carbon-neutral energy as compared to credit utilization based on recent energy market trends, costs, and forecasted fluctuation of emission factors. The Greenhouse Gas Management Hierarchy of IEMA was referred to when making these revisions.

Priorities in ONO’s GHG emission reduction measures
(Source: Prepared by ONO based on materials from ENECHANGE Ltd.)

Creating a system that does not use energy

Green sustainable chemistry

We have embraced the concept of “Green Sustainable Chemistry (GSC)” in order to work on the development of more environmentally conscious manufacturing process for active pharmaceutical ingredients (APIs) from the research and development stage. The aim of the GSC concept it to minimize the environmental burden throughout the process from selection of materials to manufacturing and disposal. The concept has become widespread in the pharmaceutical industry since the mid-2000s. In accordance with the GSC concept, we established the GSC Working Group at each site in 2018 and have been working on the development of manufacturing process for APIs while minimizing the waste from the development stage. This initiative has been recognized by TCFD analysis as one of the climate change-related opportunities.

Power load leveling

• Shifting and cutting the peak power usage from daytime hours to nighttime through the use of the nighttime heat storage system and cogeneration system
• Protecting production line during occurrence of instantaneous voltage drop and shifting daytime peak power usage by using large-capacity power storage system (NAS battery system)

Participation in Demand Response

In FY2020, we participated in Demand Response. Demand response is a system that provides incentives (rewards) to customers for saving electricity when they respond to requests (demand) from power companies during times of tight power supply and demand.

Fluorocarbon Management

In accordance with the Act on Rational Use and Proper Management of Fluorocarbons, we conduct activities such as the identification of equipment subject to the act, simple inspections/periodic inspections, generation of records, and calculations/reporting of leakage. In FY2020, the calculated leakage of fluorocarbons was 88 tons-CO₂. We will continue to prevent leakage and promote the introduction of non-CFC (chlorofluorocarbon) and low-GWP (global-warming potential) equipment when updating equipment.

Promoting energy conservation

• Introduction of advanced technology
  • －Replacing fluorescent lights with LEDs
  • －Upgrading heat source facility to module-type heat pump chiller
  • －Introduction of ultrahigh efficiency amorphous transformer with extremely low standby power
  • －Introduction of low air volume (push/pull type), ultrahigh speed variable air volume (VAV) local ventilation device
  • －Introduction of sterile isolator system that can limit area subject to high-grade washing
• Improvement of operation
  • －Heat collected from high-temperature waste water to be used as heat source
• Reviewing and adjusting the operating hours and temperatures of the equipment
• Implementing the Cool Biz and Warm Biz clothes initiative advocated by the Japanese Ministry of the Environment.

Environment-friendly office design

• When planning our new office in the US, we selected a building that received the LEED^*9 Gold Certification. Meanwhile in Japan, our company-owned building in Tokyo has been certified as CASBEE^*10 Class S. We will further pursue environment-friendly office design.

• *9 LEED: The Leadership in Energy and Environmental Design (LEED) is a rating system for buildings and site utilization developed and operated by the U.S. Green Building Council (USGBC), which promotes energy-saving and environmental-friendly buildings and site utilization.
• *10 CASBEE^®: The Comprehensive Assessment System for Built Environment Efficiency (CASBEE) is a method for evaluating and rating the environmental performance of buildings. The quality of buildings is evaluated in a comprehensive manner based not only on considerations for the environment including use of energy-saving and environment-friendly materials, but also on the comfort of the indoor environment and considerations for the surrounding landscape. A class S rating is the highest rating in this five-level rating system.

Fuel conversion

• Completion of fuel conversion from heavy oil and kerosene to city gas and LNG at all plants and research institutes (GHG emissions from the combustion of fuels to produce energy depends on the source of the fuel. GHG emissions from city gas/LNG combustion are less than those from heavy oil/kerosene.)

Introducing renewable energy

• Introducing and operating solar power generation facilities: Head Office building (FY2003), Minase Research Institute (FY2015), Tokyo Building (FY2017)

Procuring carbon-neutral energy

• Purchasing electricity under a renewable energy-based electricity menu contract: Minase Research Institute (FY2019)(Switched to fixed-amount contract with tracking information in FY2020 to ensure stable procurement)
• Introducing carbon neutral city gas: Tsukuba Research Institute (from FY2021)
  Carbon-neutral city gas is a type of city gas that utilizes carbon neutral LNG, or liquefied natural gas (LNG) which offsets greenhouse gases generated in the processes from the extraction to the burning of natural gas with carbon credits (carbon offset) and assumes that no CO₂ is generated on a global scale.

Credit utilization

• Purchasing Green Energy Certificates (from FY2018) and J-Credits (from FY2019)
  We are promoting the use of renewable energy by purchasing certificates for electricity generated by renewable energy (Green Energy Certificates) and J-Credits.

External evaluation of our climate change-related efforts

• In the survey conducted by the UK-based CDP on climate change, we were selected as an A-List company, the highest rating, for three consecutive years (in FY2018-FY2020).
• We won an award in the Activity Implementation and Promotion category of the Minister of the Environment’s 2019 Commendation for Global Warming Prevention Activity (the Ministry of the Environment).
• The Minase Research Institute received the Osaka Governor's Award of the Osaka Stop Global Warming Award for FY2020.
• Under the Act on the Rational Use of Energy (Energy Conservation Act), we have received the highest S rank for six consecutive years in corporate energy conservation excellence (FY2015-FY2020).
• We were introduced in a collection of case studies on energy efficiency & conservation (published by the Kansai Bureau of Economy, Trade and Industry) as among specified businesses who have remarkable achievements in various aspects of energy conservation.

See the External Evaluation section for details.

GHG Emissions in the Value Chain (Scope 3)

GHG emissions in the value chain (Scope 3) have been divided into 15 categories under the Ministry of the Environment’s guidelines, and calculated for our sites in Japan since FY2014.

• * The emission factors used for calculation are figures stated in the "Emission Factor Database on Accounting for Greenhouse Gas Emissions throughout the Supply Chain (FY2019, Ver. 3.0; FY2020, Ver. 3.1)," published by the Ministry of the Environment, Government of Japan.

The availability of high-quality fresh water is one of the important factors for us in conducting business activities. We are making efforts for reducing water use so as to mitigate the load on limited water resources. As for water risks, the Environmental Management Committee leads and conducts surveys on the risks, and identifies/analyzes/evaluates the business risks. Risk evaluation at important sites that use large volumes of water is conducted using the WRI AQUEDUCT risk assessment tool of the World Resource Institute. As of the end of FY2019, none of our company’s important sites operate or conduct water intake in areas categorized as being at “extremely high risk” for water stress*. We continue to operate in areas where it is possible to use good quality fresh water as needed for business operations, and our business activities are therefore not affected. In FY 2019 and FY 2020, we received an improved rating of “A-” (up from B in FY 2018) in the Water Security survey conducted by CDP, a U.K.-based nonprofit organization.

*Water intake at factories and research institutes accounts for approximately 90% of the total use (FY2020), and for each sites, water stress categories are as follows. Low-medium: Yamaguchi Plant, Minase Research Institute, Fukui Research Institute, Joto Pharmaceutical Product Development Center, Medium to high: Fujiyama Plant, Tsukuba Research Institute.
 Note that ONO Pharma Korea is located in the “high risk” area, but its main business is clinical development and sales, so their water use is mainly domestic water at the business office, not factories and research facilities that use relatively large amounts of water.

Analysis and Evaluation of Water-related Risk and Opportunity

We have posted details such as the water-related risks and opportunities, water intake and wastewater volumes at CDP Water (Japanese only). They can be confirmed at the CDP website (A CDP ID is required). 

Progress towards a water recycling society

To achieve our medium-term environmental target of the Environmental Vision for the “Realization of a water recycling society” of “Reducing water resource consumption (water intake) per production volume unit by 15% by FY 2030 (compared to FY 2017),” we have set an annual goal to "Reduce water resource consumption (water intake) below that of the previous year" and we are working vigorously to reduce water consumption in business activities. The volume of water intake in FY 2020 was 245.6 km3, a 17.2% reduction (51.1 km3) compared to FY 2019, and we therefore achieved the target for the fiscal year.
Specific initiatives to reduce water consumption include the following: installation of highly airtight doors at the plant and stopping the use of running water traps as insect repellent, reduction of cooling water by adjusting the preset temperature of the heat drain tank, stopping the spraying of water or changing the preset temperature of the spraying water on air-cooling chillers and total heat exchangers in the laboratory. We also install water-saving sanitary equipment when a site is expanded, reconstructed, or renewed. In addition, Fukui Research Institute has installed a water recycling system to reduce water intake.
Incidentally, the water intake per production volume unit in FY 2020 increased by 4.6% compared to FY 2017. This is mainly due to a decrease in the number of boxes produced, which is used as a denominator for calculation. High-dose formulations of main products, which were not available in FY 2017, were added in FY 2018. The number of boxes produced, which is the denominator for calculation, was greatly reduced, because the number of boxes produced was apparently calculated as smaller even with the same amount of production.
 

Water intake (water resource consumption) and water intake per production volume unit

• * From FY2019, the head office and other domestic offices have been added retroactively to FY2017.

Wastewater

• * Sites where data on water consumption and wastewater volume were collected: Fujiyama Plant, Joto Pharmaceutical Product Development Center, Yamaguchi Plant (added from FY 2018), Minase Research Institute, Fukui Research Institute, Tsukuba Research Institute, Head Office, sales offices and other offices, etc.
  From FY2019, the head office and other domestic offices have been added retroactively to FY2017.

• *11 Rivers/Lake in the areas where major business sites are located: Toyohira River, Okura River, Arakawa River, Sakawa River, Kiso River, Lake Biwa, Yodo River, Ota River, Yoshino River, Naka River

We recognize that the realization of a resource recycling society is one of the important items for our business activities, and the Resource Recycling Subcommittee, which is a sub-organization of the Environmental Management Committee, has led the company-wide efforts. Based on the basic policies of "promotion of 4Rs (refuse, reduce, reuse and recycle)" and "selection of materials with reduced environmental impact," the subcommittee has investigated and analyzed the waste generation processes, and examined and evaluated policies for the realization of a resource-recycling society, and reinforced initiatives for a sustainable society through environmental conservation.

Progress toward realization of a resource recycling society

Please check here for our goals and progress.

Progress toward realization of a resource-recycling society (data)

The final landfill rate of industrial waste in FY2020 was 0.2%, and we have continuously achieved zero emissions^*12. The total amount of industrial waste increased by 71.9 t compared with the previous year, and the production volume unit increased by 13.2% compared with the 2017 level, both of which did not meet the respective targets. The increase in emissions was mainly due to the removal of unnecessary items in association with the renovation of Minase Research Institute, an increase in highly active wastewater in association with the increase in the production of highly active pharmaceuticals, and the start of operations at the Yamaguchi Plant. The increase in production volume unit was mainly due to an increase in industrial waste output and a decrease in the number of product packages due to standard change of major products (addition of high-volume products).

• *12 Zero emissions are defined as the percentage of non-recycled waste (sent for landfill disposal or simple incineration) being 1% or less of the total volume of waste.

Final landfill disposal volume and Final landfill disposal rate of industrial waste

• * Sites where data on final landfill disposal volume and final landfill disposal rate of industrial waste were collected: Fujiyama Plant, Joto Pharmaceutical Product Development Center, Yamaguchi Plant (Added from FY 2018), Minase Research Institute, Fukui Research Institute, and Tsukuba Research Institute.
• * Final industrial landfill disposal volume of industrial waste in FY2017 includes the amount of waste (5.8 tons) from renovation of the Joto Pharmaceutical Product Development Center.

• * The industrial waste volume in FY2017 (25.64 tons) from renovation of the Joto Pharmaceutical Product Development Center was excluded from the calculation

Industrial waste volume and Special management industrial waste volume (hazardous waste volume)

• * Sites where data on industrial waste volume and special management industrial waste volume (hazardous waste volume) was collected: Fujiyama Plant, Joto Pharmaceutical Product Development Center, Yamaguchi Plant (added from FY2018), Minase Research Institute, Fukui Research Institute, and Tsukuba Research Institute
• * Special management industrial waste (hazardous waste) is defined under the Waste Management and Public Cleansing Law as waste that has properties of explosiveness, toxicity, infectiousness, and/or possibly causing damage to human health or the living environment. We strive to manage this type of waste properly.

Efforts toward realization of a resource recycling society

We have worked to reduce waste generation across the company by reducing paper documents with digitization. We have sold waste paper and metal waste which are no longer needed at our research institutes and production sites as valuable materials, and experimental equipment that is no longer used at the research institutes. In addition, for industrial waste (including specially controlled industrial waste) generated at the research institutes and production sites, we have selected the intermediate treatment contractors that recycle wastes without landfilling.
In pharmaceutical development, we have also started studies using computer simulation technology, which is expected to lead to a reduction in raw materials (waste).
We continue to promote various initiatives and work to realize a resource-recycling society.

Initiatives to Promote Reduction of Environmental Impact

Approaches to Product Packaging

In terms of product packaging, we promote the reduction of its environmental impact by changing packaging materials and forms.
In an effort to reduce the amount of plastic used, previously plastic compartment materials for packaging of injectable solutions were changed to paper-based materials in FY2019, and began distribution in FY2020. In response to the results of a questionnaire survey on product packaging conducted at medical institutions, we have changed the method of binding Blister package sheets for new products from a bag-type (transparent pillow packaging) to a band-type, thereby reducing the amount of plastic used.
In addition, we have switched the inks to be used to vegetable oil inks, as well as changed paper-based materials for individual packaging boxes to FSC^®-certified paper. We also verify the quality to further promote the selection of materials that reduce our environmental impact, such as bioplastics.

Efforts to reduce the amount of plastic used

Switching of individual packaging box materials to FSC^®-certified paper and selecting vegetable oil ink

In addition, pursuant to the Containers and Packaging Recycling Law, some of the containers and packaging materials for the products we sell are recycled.

Other efforts

Introduction of paper files

We have introduced paper-based files since January 2020. By switching some plastic files to paper files, we are able to reduce the amount of plastic used.

Use of photocopy paper or purchase of stationary materials

For photocopies, we perform print management, and a cloud storage system "BOX", which was introduced globally in October 2017, promoted paperless storage and reduced the amount of work required to store and share files. As for purchasing, we have indicated in an easy-to-understand manner whether the products listed in the purchasing system are in compliance with the “Act on Promotion of Procurement of Eco-Friendly Goods and Services by the State and Other Entities” and promoted awareness within us so that each employee has environmental awareness.

Management of Chemicals

ONO is committed to reducing chemical emissions to the lowest possible level not only in compliance with laws and regulations but also in recognition that these emissions may impact human health and the ecosystem.

Compliance with the PRTR Law

In accordance with the Law concerning “Pollutant Release and Transfer Register (PRTR),” we have appropriately controlled chemical substances that may have a harmful effect on human health and the ecosystem. The amount of PRTR Class 1 designated chemical substances (substances handled in an amount of 1 ton or more per year) reported to the government was 13.0 tons in FY2020, which has been maintained at a low level. In the same fiscal year, the amount released into the air was 0.3 tons, and that into water was 0.0 tons, maintaining low levels. Please refer to the ESG Data for details. We also legally and appropriately manage chemical substances other than those reported. We will continue to work to reduce emissions into the environment through appropriate chemical substance management.

Results for the goals

Handling of PCBs

We manages waste polychlorinated biphenyls (PCBs) properly in accordance with the Law Concerning Special Measures for Promotion of Proper Treatment of PCB Waste in Japan. The company submits a report on the storage and disposal of waste PCBs to the Osaka municipal government every year.

• Joto Pharmaceutical Product Development Center in FY2007, in FY2019 and in FY2020 and Minase Research Institute in FY2014 delivered PCBs to the Japan Environmental Storage and Safety Corporation, a PCB waste treatment service provider. At Joto Pharmaceutical Product Development Center, a condenser was found during the FY2020 re-inspection, and the disposal was completed during FY2020.

Management of radioisotopes, etc

Management of radioisotopes, etc. is performed appropriately in accordance with the "Act on Prevention of Radiation Hazards due to Radioisotopes, etc." and the results are reported to the Nuclear Regulation Authority as a radiation management status report every fiscal year.

Recombinant organisms, pathogens, etc.

As for genetically modified organisms and pathogens used in drug discovery research and manufacturing activities, we are preventing their spread into the environment and their leakage by complying with in-house regulations based on relevant laws and regulations such as the “Act on the Conservation and Sustainable Use of Biological Diversity through Regulations on the Use of Living Modified Organisms” (Cartagena Act) and the “Act on the Prevention of Infectious Diseases and Medical Care for Patients with Infectious Diseases” (Infectious Diseases Control law). In addition, to promote the appropriate use of these research samples, the In-house Safety Committee continues to provide education and training to laboratory staff and examination of the experimental applications.

Prevention of Air Pollution and Water Pollution

The production sites comply with the Air Pollution Control Act, the Law concerning Pollutant Release and Transfer Register (PRTR), agreements on pollution prevention with local governments, and other related laws and regulations in order to reduce environmental impact. They periodically measure the concentration of exhaust gas and noise from boilers and CGSs as well as wastewater from the plants, in accordance with related laws and other regulations, in order to ensure that levels are within regulatory limits. They also strive to reduce environmental risk. The PDCA cycle is followed in the plants, and employees are provided with the necessary environmental management training in operations in which there is a risk of environmental impact. Emergency drills are also conducted regularly. These drills use scenarios such as high concentrations of soot due to faulty equipment and leakages of oil into the ground, giving employees practice in the necessary preventative and responsive measures for such situations.
In recent years, extreme weather events are occurring as a result of global warming. We have formulated manuals to prepare for accidents and emergency situations caused by such weather, and we organize training sessions to minimize environmental impacts. In particular, to address any accidents and emergency situations that may cause water or soil pollution, we systematically review and implement the backup and reinforcement of relevant equipment.

Results for the goals

As for the categories of sustainability information (environment : GHG emissions, energy consumption, GHG emissions in the value chain (Scope 3) (For Cat1 and Cat9, the previous year's data has been verified in the assurance process.), water intake volume, wastewater volume (including drainage destination), industrial waste volume, special management industrial waste volume (hazardous waste volume), and final landfill disposal volume of industrial waste, society : number of lost-time injuries and frequency rate), each of which is disclosed and indicated with the icon in our SUSTAINABILITY DATA 2021, we have received independent assurance so as to bolster the reliability of the information. The Independent Assurance Report is reprinted on page ５.