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.
Risks and opportunities related to climate change are investigated under the leadership of the Environment Management Committee, the Climate Change Sub-Committee, which was established under the Environment Management Committee, and the TCFD Study Working Group. They identify, analyze, and evaluate risks and opportunities that may have an impact on business. For more details, please refer to our website on Information Disclosure Based on the TCFD Recommendation.
ONO has been working toward decarbonization by setting ambitious targets from an early stage, setting a goal of zero emissions (Scope 1+2) for the company itself by 2050, which was approved by SBTi in October 2019 as a 1.5°C target, the highest level at that time. (For more information, please visit here.) In order to accelerate our efforts, in FY2023 we set a new goal of achieving carbon neutrality* for our own emissions (Scope 1+2) by 2025, and moved up the target date for achieving zero emissions from 2050 to 2035.
In terms of energy, we will further increase our use of renewable energy sources (we joined RE100 in June 2020).
|Greenhouse Gas Emissions
|Renewable Electricity Rate||
|Greenhouse Gas Emissions
As for the results of progress against the greenhouse gas emission reduction targets in FY 2022, which were established based on our medium- to long-term environmental vision, our Scope 1+2 (on a market basis*1) for FY2022 was reduced by 38.2% against the reduction target of 21.0% or more compared to FY2017 (FY2017: 29.8 kt-CO2, FY2022: 18.4kt-CO2). Meanwhile, our Scope 3 was reduced by 30.3% against the reduction target of 11.5% or more compared to FY2017 (FY2017: 75.1 kt-CO2, FY2021: 52.3kt-CO2). Regarding a portion of Scope 3 emissions (Category 1 and 9), figures were calculated based on the previous-year emissions because current-year data for our major business partners and pharmaceutical wholesalers had not been published at the time of calculation. Scope 1+2 GHG emissions do not include CO2 offsets from voluntary credits (for purchases of carbon-neutral city gas). Including the amount of CO2 offset by voluntary credits (for purchases of carbon-neutral city gas), Scope 1+2 GHG emissions will be reduced by 40.5% compared to FY2017 (FY2022: 17.7kt-CO2).
Regarding the use of renewable energy, in line with the RE100*2 international initiative (which we joined in June 2020), we achieved the FY2022 target (a renewable energy utilization ratio of 21.0% or more of total power consumption) and attained 21.5%.
Greenhouse gas emissions (Scope 1+2)
Electricity consumption and renewable energy utilization rate
Priorities in ONO’s GHG emission reduction measures
(Source: Prepared by ONO based on materials from ENECHANGE Ltd.)
We have embraced the concept of Green Sustainable Chemistry (GSC) in order to work on the development of a more environmentally conscious manufacturing process for active pharmaceutical ingredients (APIs) from the research and development stage. The aim of the GSC concept is to minimize the environmental burden throughout the entire process, from the selection of materials to manufacturing and disposal. The concept has gradually become widespread in the pharmaceutical industry since the mid-2000s. In order to introduce the GSC concept, we established the GSC Working Group at each site in 2018 and have been working on the development of the manufacturing process for APIs while minimizing the waste from the development stage and utilizing Process Mass Intensity (PMI)* as an evaluation indicator for API manufacturing efficiency. This initiative has been recognized by TCFD analysis as one of the climate change-related opportunities.
The continuous manufacturing system is a production method in which raw materials are continuously charged to the manufacturing process and finished products are continuously discharge. Since compact devices are connected and automated, energy saving, production and resource efficiency are expected to be better than batch production system, which is the mainstream method in pharmaceutical manufacturing. We are changing one of the manufacturing processes, "wet granulation," from the batch method to the continuous method (see the following figure "Continuous manufacturing processes in which we are currently investigated"). We anticipate that doing so can reduce the raw materials required for development by approximately 13%* in weight. In the future, we will further expand the scope of applying this continuous manufacturing system in order to further reduce energy and raw material consumption. This initiative has also been recognized by TCFD analysis as one of the climate change-related opportunities.
Continuous manufacturing processes in which we are currently investigated
Demand response is positioned as an "optimization of electronic demand" under the Act on Rationalizing Energy Use and Shifting to Non-fossil Energy ("Revised Energy Conservation Act"). We have been striving to optimize the balance of demand and supply of electricity, in addition to electricity saving during regular time since FY2020 by saving and storing electricity (response) in response to the requests from power companies (demand).
In accordance with the Act on Rational Use and Proper Management of Fluorocarbons (Fluorocarbon Emissions Control Act), 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, etc. In FY2022, the calculated leakage of fluorocarbons remained at a low level of 0.2 tons-CO2. We will continue to prevent leakage and promote the introduction of non-CFC (chlorofluorocarbon) and low-GWP (global-warming potential) equipment in view of the reduction of fluorocarbons emissions. At the same time, we promote the total abolition of devices using CFCs, which include ozone-depleting substances.
(Source: Created by ONO with reference to materials from Toko Electrical Construction Co., Ltd.)
We have incorporated carbon pricing* into our environment-related investment decisions. We use the carbon pricing to raise the priority of decarbonization investment.
Our basic stance is to communicate and engage in constructive dialogue with all stakeholders, including patients, healthcare professionals, shareholders and investors, business partners, local communities, employees, and related government and industry groups. In particular, in order to accelerate the reduction of GHG emissions, it is important to cooperate with other companies to encourage the government to expand the introduction of renewable energy. In March 2021, RE100, with the cooperation of the Japan Climate Leaders’ Partnership (JCLP)*, supported a letter to the Japanese government calling for the expansion of renewable energy introduction, together with 52 companies in Japan and overseas (JCLP*, March 2021 news). We believe that if such inter-company collaboration can reduce renewable energy costs and lead to an expansion of the way in which renewable energy is obtained, it will be easier for companies to utilize renewable energy and contribute to the reduction of GHG emissions in society as a whole.
GHG emissions in our supply 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. Together with our business partners in the supply chain, we are strengthening our sustainability-related activities, such as the natural environment, human rights and the labor environment (click here for details). In January 2023, we started joint transportation of ethical pharmaceuticals in Japan and also started to engage in CO2 emission reduction by making transportation more efficient (click here for more details).
|C1||Purchased goods and services||13.8||-||Multiplying GHG emissions (Scope 1, 2) of our suppliers for raw materials and materials (accounting for 80% or more of our raw materials or materials purchase costs) by the ratio of the sales to ONO out of the total sales of the suppliers. Concerning ratios for other suppliers, on the assumption that the same trend as major suppliers, calculate by using the ratio of GHG emissions to the transaction amount at major suppliers.||This category is closely associated with our business activities since active pharmaceutical ingredients for manufacturing of pharmaceuticals, intermediate products and research reagents are included.|
|・It covers production and research sites.
・Figures for FY2022 are not calculated because our major suppliers had not published their CSR reports at the time of calculation.
|C2||Capital goods||26.4||21.3||Multiplying the amount of capital goods treated as fixed assets (facility reinforcement, maintenance, and investment) excluding land, by the factor.||Calculate based on capital goods treated as fixed assets. The fixed assets used in this calculation are essential for business activities.|
|C3||Fuel- and energy-related activities that are not included in scope 1 or 2||2.4||2.1||Multiplying the amount of purchased non-renewable electricity, by the emission factor.||-|
|C4||Upstream transportation and distribution||0.1||0.1||Multiplying the transportation data from our production site and logistic centers to the destination, by the emission factor.||-|
|C5||Waste generated in operations||0.3||0.3||Multiplying weight of each type of waste generated, by the emission factor.||-|
|C6||Business trip||0.5||1.3||Multiplying business trip allowances, by the emission factor.||It covers travels by airplane or Shinkansen bullet train.|
|C7||Employee commuting||0.7||0.7||Multiplying employees’ commuting costs, by the emission factor.||-|
|C8||Upstream leased assets||2.1||1.9||Multiplying fuel consumption used in leased vehicles, by the emission factor.||-|
|C9||Downstream transportation and distribution||5.5||-||Multiplying CO2 emissions of our major pharmaceutical wholesalers, by percentage of our net sales included in all net sales of major pharmaceutical wholesalers.||Transportation and distribution are important business activities to control distribution of pharmaceuticals and to ensure their stable supply.
Concerning GHG emissions in FY2022, data of major pharmaceutical wholesalers have not been disclosed at the time of calculation. Therefore, they are not calculated.
|C10||Processing of sold products||N/A||N/A||-||We sell only finished products.|
|C11||Use of sold products||N/A||N/A||-||No energy is consumed during the use of our products due to characteristics of pharmaceuticals.|
|C12||Discarding sold products||0.1||0.2||Multiplying weight of each material of containers and packages of sold products, by the emission factor.||-|
|C13||Downstream leased assets||0.3||0.3||Multiplying floor space of assets (buildings) leased and owned by us for each use, by the emission factor.||-|
|C14||Franchises||N/A||N/A||-||We do not operate franchised stores.|
|C15||Investments||N/A||N/A||-||There is no investment involving large amounts of greenhouse gas emissions.|
|Total||52.3||-||-||Concerning GHG emissions in FY2022, data of major suppliers and pharmaceutical wholesalers have not been disclosed at the time of calculation. Therefore, they are not calculated.|