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.
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*1) for FY2021 were reduced by 20.9% against the reduction target of 16.8% or more compared to FY2017 (FY2017, 29.8 kt-CO2; FY2021, 23.6 kt-CO2). Meanwhile, our Scope 3 GHG emissions were reduced by 33.7% against the reduction target of 6.9% or more compared to FY2017 (FY2017, 75.1 kt-CO2; FY2020, 49.8 kt-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. Scopes 1 and 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), Scopes 1 and 2 GHG emissions will be reduced by 22.9% compared to FY2017 (FY2021: 23.0 kt-CO2). Regarding the use of renewable energy, in line with the RE100*2 international initiative (which we joined in June 2020), we achieved the FY2021 target (a renewable energy utilization ratio of 16.8% or more of total power consumption) and attained 17.0%.
GHG emissions (Scopes 1+2)
Breakdown of GHG emissions by scope (Market-basis)
Breakdown of Scope 1 by GHG type
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 it 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 accordance with 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 while utilizing Process Mass Intensity (PMI)*3 as an evaluation indicator for API manufacturing efficiency. This initiative has been recognized by TCFD analysis as one of the climate change-related opportunities.
We are working on changing one of the production processes, namely our “wet granulation” production process, from a batch-based system to a continuous one. We anticipate that doing so can reduce the raw materials required for development by approximately 13%*5 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.
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.
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 FY2021, the calculated leakage of fluorocarbons remained at a low level of 0.03 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.
(Source: Created by ONO with reference to materials from Toko Electrical Construction Co., Ltd.)
We have incorporated carbon pricing*8 into our environment-related investment decisions. We review and implement carbon pricing on a periodic basis.
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 promotion of reducing GHG emissions in society as a whole.
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. Together with our business partners in the supply chain, we are strengthening our CSR-related management system and initiatives in areas such as the natural environment, human rights and the labor environment (click here for details).
|Cat1||Purchased goods and services||12.7||-||GHG emissions(scope 1,2) volume of our raw materials and major materials suppliers (accounting for 80% or more of our raw materials or materials purchase costs) multiplied by the ratio of the sales to ONO out of the total sales of the supplier. Ratios for other business suppliers are assumed to follow the same trend as for major suppliers, and are calculated 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 drugs, intermediate products and research reagents are included.|
|-Covers production and research sites
-Figures for FY2021 are not calculated because our major business partners had not published their CSR reports at the time of calculation.
|Cat2||Capital goods||25.8||26.4||Amount of capital goods treated as fixed assets (reinforcement of facilities/maintenance investment) excluding land, multiplied by factor||Calculated based on capital goods treated as fixed assets. The fixed asses used in this calculation are essential for business activities.|
|Cat3||Fuel- and energy-related activities not included in scope 1 or scope 2||2.7||2.4||Amount of non-renewable electricity purchased, multiplied by emission factor||-|
|Cat4||Upstream transportation and distribution||0.1||0.1||Transport data on deliveries from ONO production sites and distribution centers to destinations, multiplied by emission factor||-|
|Cat5||Waste generated in operations||0.3||0.3||Weight of each type of waste generated, multiplied by emission factor||-|
|Cat6||Business travel||0.4||0.5||Business trip allowances, multiplied by emission factor||Covers travels by airplane or Shinkansen bullet train|
|Cat7||Employee commuting||0.4||0.7||Employees’ commuting costs, multiplied by emission factor||-|
|Cat8||Upstream leased assets||2.0||2.1||Fuel consumption used in leased vehicles, multiplied by emission factor||-|
|Cat9||Downstream transportation and distribution||5.0||-||GHG emissions stated in CSR reports on ONO’s major pharmaceutical wholesalers, multiplied by percentage of ONO net sales included in all net sales of major pharmaceutical wholesalers||Transportation and distribution are important business activities to control distribution of and to ensure stable supply of drugs.
Figures for FY2021 are not calculated because our major pharmaceutical wholesalers had not published their CSR reports at the time of calculation.
|Cat10||Processing of sold products||Not relevant||Not relevant||-||ONO makes only finished products|
|Cat11||Use of sold products||Not relevant||Not relevant||-||No energy is consumed during the use of ONO products|
|Cat12||End-of-life treatment of sold products||0.2||0.1||Weight of each type of ONO product container or packaging disposed of as waste, multiplied by emission factor||-|
|Cat13||Downstream leased assets||0.3||0.3||Floor space of asset (building) owned and rented out categorized by use, multiplied by emission factor||-|
|Cat14||Franchises||Not relevant||Not relevant||-||ONO does not operate franchises|
|Cat15||Investments||Not relevant||Not relevant||-||There is no investment involving large amounts of greenhouse gas emissions.|
|Total||49.8||-||-||Figures for FY2021 are not calculated because our major pharmaceutical partners and wholesalers had not published their CSR reports at the time of calculation.|