Environment

Realization of a Decarbonized Society

リード文

ONO considers global warming and other climate changes to be a major threat to people's health and recognizes them as important issues that affect the continuity of our business activities. For these reasons, the Environment Management Committee, whose activities cover the entire company, and the Carbon Neutrality Sub-Committee, which was established under it, take the initiative to engage in various activities to achieve a decarbonized society.

ONO PHARMACEUTICAL CO.,LTD., ONO PHARMACEUTICAL CO.,LTD., system

Analysis and Evaluation of Risks and Opportunities related to Climate Change

Risks and opportunities related to climate change are investigated under the leadership of the Environment Management Committee and the TCFD Working Group. They identify, analyze, and evaluate risks and opportunities that may have an impact on our business. For more details, please refer to our disclosure based on the TCFD Recommendation.

ONO PHARMACEUTICAL CO.,LTD., ONO PHARMACEUTICAL CO.,LTD., system

Targets and Progress

We are moving ahead with activities to achieve our medium- to long-term environmental targets.

Our medium- to long-term environmental targets Targets and results for FY2024
Greenhouse Gas Emissions
(Scope 1+2)
  • Achieve carbon neutrality by FY2025(virtually zero greenhouse gas emissions by offsetting with voluntary carbon credits)
  • Achieve zero greenhouse gas emissions by FY2035
  • Target: Reduce by at least 65% (10.4kt-CO2)
    1. Base year: FY2017
  • Result: Reduce by 70.3% (8.9kt-CO2)
Renewable Energy Rate in purchased electricity
  • Achieve 100% by FY2025
    1. Coverage: ONO’s operation sites 
  • Target: More than 75%
  • Result: 93.2%
Greenhouse Gas Emissions
(Scope 3)
  • Reduce by 30% by FY2030
  • Reduce by 60% by FY2050
    1. Base year: FY2017
  • Target: Reduce by at least 16.2% (103.1kt-CO2)
    1. Base year: FY2017
  • Result: Reduce by 18.4% (100.5kt-CO2)

In FY2024, we achieved all of the fiscal year targets we set for achieving our medium- to long-term targets. Scope 1+2 greenhouse gas (GHG) emissions do not include the amount of CO2 offset through the use of voluntary credits (carbon neutral city gas purchases). When reflecting the amount of CO2 offset by such credits, FY2024 Scope 1+2 GHG emissions would be 2.0kt-CO2, which is a 93.4% reduction compared to FY2017. Scope 3 emissions are calculated using the previous fiscal year's data, since the GHG emissions of our major suppliers and pharmaceutical wholesalers, which are used to calculate Categories 1 , 9 and 15, had not been published at the time of calculation.

Scope 1+2 Greenhouse gas emissions*1

graph

Energy consumption

graph

Electricity consumption and renewable energy utilization rate

graph
  • Locations covered by the above three graphs: Fujiyama Plant, Yamaguchi Plant (added from FY2018), Joto Pharmaceutical Product Development Center, Minase Research Institute, Tsukuba Research Institute, Fomer Fukui Research Institute, Head Office and other offices, etc.
  • GHG emissions are calculated in accordance with Act on Promotion of Global Warming Countermeasures.
ONO PHARMACEUTICAL CO.,LTD., ONO PHARMACEUTICAL CO.,LTD., system

Reduction Policy

We have established a policy for reducing GHG emissions based on recent energy market trends, costs, and projected changes in emission factors. Our priority measures are avoidance (creating systems that do not use energy), reduction (promoting energy conservation activities), substitution (switching to renewable energy sources, etc.), and offsetting (offsetting through the use of credits).
In addition, in order to promote low-carbon investments and climate change prevention measures, we have set our own internal price for carbon dioxide (CO2) emissions, introduced internal carbon pricing to be used for making investment decisions, and are promoting investments geared toward realizing a decarbonized society.

ONO PHARMACEUTICAL CO.,LTD., ONO PHARMACEUTICAL CO.,LTD., system

Initiatives to reduce Scope 1+2 GHG emissions

Scope 1+2 GHG emissions Reduction Roadmap

figure

ReducePromotion of energy-saving activities

Operational Improvement
  • Recover heat from high-temperature wastewater and use it as a heat source
  • Review of operations such as equipment operating hours and temperature settings
    Most of our energy consumption comes from air conditioning equipment, so we are reviewing the operating hours and temperature settings of air conditioning equipment to an extent that does not affect the quality of our products. At all sites, we compare monthly usage data for electricity, gas, and water by building and major equipment with the same month of the previous year, investigate the causes of any increases or decreases, and promptly implement improvements. These usage data are also shared with the Carbon Neutrality Sub-Committee under the Environment Management Committee.
    At the Yamaguchi Plant, the monitoring system has been modified to monitor the upper limits of utilities such as electricity, city gas, steam, and water supply. The 13 monitoring systems installed manage upper usage limits every hour, and if unusual usage is detected based on historical maximums, an alert is issued. This enables early detection and response to equipment failures or leaks due to aging pipes.
    At the Fujiyama Plant, since FY2022, we have been utilizing over 700 energy data collection points (for electricity, heat, and steam) installed throughout the plant to monitor daily usage and analyze the data. We identify energy losses and confirm the impact of energy-saving measures by comparing consumption before and after implementation, prioritizing actions accordingly. The results of data analysis and the effects of initiatives on energy consumption are visualized in monetary terms and shared with employees, raising individual awareness. As a result, operational improvements have progressed significantly, leading to a 7.8% reduction in CO2 emissions in FY2022 compared to FY2021, and a further 2.3% reduction in FY2023. These efforts were recognized, and the Fujiyama Plant received the "Shizuoka Prefecture Governor's Award for Global Warming Prevention Activities" in FY2023.
figure
Installation of energy-saving equipment
  • Replacement of fluorescent lights with LEDs
  • Upgrading heat source facility to module-type heat pump chiller
  • Installation of ultrahigh efficiency amorphous transformer with extremely low standby power
  • Installation of low air volume (push/pull type), ultrahigh speed variable air volume (VAV) local ventilation device
  • Installation of sterile isolator system that can limit the area subject to high-grade washing
  • Installation of energy-saving control devices for commercial air conditioners, HVAC systems, and refrigerators to reduce power consumption; monitoring and controlling compressor operation, which accounts for most of the electricity use in air conditioners
  • Replacement of solar panels whose power generation efficiency has declined
photo
Module-type heat pump chiller (Minase Research Institute)
photo
Low air volume (push/pull type), ultrahigh speed variable air volume (VAV) local ventilation device (Minase Research Institute)
Participation in demand response

Demand response is positioned as an "optimization of electricity 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).
At the Yamaguchi Plant, the system was modified to allow remote charging and discharging of NAS batteries for efficient demand response.

Electrification of Energy
  • Installation of large-capacity power storage system (NAS battery system)
  • Switching boilers to electric
photo
Large-capacity power storage system (Yamaguchi Plant)
Fluorocarbon management

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 FY2024, the calculated leakage of fluorocarbons was 0.6 ktons-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.

Environment-friendly office design
  • We have been promoting environmentally friendly office designs, and our Tokyo Building has obtained an S-Class rating under the CASBEE® (Comprehensive Assessment System for Built Environment Efficiency) *1 certification system. For our U.S. office, we have also selected a building that has received a Gold-level LEED*2 certification. In addition, the administration and welfare building at the Yamaguchi Plant has been designed in an environmentally friendly manner that makes use of energy-saving equipment.
  • An evaluation and rating method using 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.
  • An environmental performance evaluation system for buildings and city environments operated by a non-profit organization, the U.S. Green Building Council (USGBC). It is called LEED, from the initial letters of Leadership in Energy and Environmental Design.

Initiatives That Help to Conserve Resources in Research and Production Processes

Green sustainable chemistry initiatives

In order to develop more environmentally friendly manufacturing processes for active pharmaceutical ingredients (API), we adopt the Green Sustainable Chemistry (GSC) concept from the research and development stage. GSC is defined as "chemistry that is friendly to people and the environment and supports the development of a sustainable society." We use Process Mass Intensity* (PMI) as an indicator for evaluating the efficiency of API manufacturing, and are working to develop manufacturing processes for APIs in a manner that is conscious of reducing our impact on the environment from the research-and-development stage.

  • PMI is calculated by dividing the total weight of raw materials and materials required for manufacturing APIs by the weight of the API that was manufactured.
Introduction of a continuous manufacturing system

In “batch manufacturing system”, which is the mainstream in pharmaceutical manufacturing, each process is independent, and pharmaceuticals are manufactured by repeatedly isolating intermediate product during each process and moving on to the next process. In “continuous manufacturing system”, on the other hand, multiple processes are integrated into a single process by linking together compact equipment so that production is carried out continuously while each process is controlled for a fixed period of time. Continuous manufacturing therefore offers advantages such as more consistent quality as well as more efficient use of space. We are in the process of converting our wet granulation process from batch manufacturing to continuous manufacturing, and we expect that this transition will enable us to reduce the amount of raw materials (weight) required for development stage by approximately 13%* compared to the batch manufacturing system. In addition, due to space saving, the continuous manufacturing system is expected to be able to reduce facility-operation-related energy consumption by 24.3% compared to batch production. We intend to further expand the scope of continuous manufacturing to achieve further energy and raw material reductions.

  • This % value compares how much less raw materials will be needed from using a continuous system for wet granulation (one of the production processes) in contrast to that of a typical batch system.

Continuous manufacturing processes in which we are currently investigated

photo
Our continuous manufacturing facilities
(Fujiyama Plant)

SubstituteSwitching to Renewable Energy

Installation of equipment
  • Introducing and operating solar power generation facilities: Head Office building (FY2003), Minase Research Institute (FY2015), Tokyo Building (FY2017)
    The solar panels at the Head Office were replaced after 20 years due to decreased power generation efficiency.
photo
Solar panels (Minase Research Institute)
photo
Solar power monitoring system (Head office)

Procuring carbon-neutral energy

  • Procurement of solar power through PPA (Power Purchase Agreement): From FY2024, a portion of the electricity contracts for Minase Research Institute, Joto Product Development Center, and Head Office have been switched to PPA. Under our PPA, a dedicated renewable energy facility is installed and operated by the power producer, and the generated renewable electricity is supplied to us. Unlike renewable energy menu contracts, which use certificates, PPA allows us to directly use renewable electricity.
  • Purchase of electricity under a renewable energy-based electricity menu contract: Minase Research Institute (from FY2019), Yamaguchi Plant (from FY2022), Fujiyama Plant (from FY2023), Tsukuba Research Institute (from FY2023), Head Office (from FY2024), and company-owned buildings (from FY2025)
  • Purchased electricity will be changed to 100% renewable energy from FY2023 at Fujiyama Plant, Yamaguchi Plant, and Tsukuba Research Institute, and from FY2024 at Minase Research Institute, Joto Pharmaceutical Product Development Center, and Head Office.Purchase of Green Power Certificates (from FY2018), J-Credits (from FY2019), and Non-Fossil Certificates (from FY2021)
    We promote the use of renewable energy by purchasing certificates for electricity generated from renewable energy sources.

Green Energy CertificateGreen Energy Certificate

CompensateOffset through the use of voluntary credits

  • Introducing Carbon offset city gas: Tsukuba Research Institute (from FY2021), Joto Pharmaceutical Product Development Center (from FY2021), and Yamaguchi Plant (from FY2023)
    Carbon offset city gas is city gas that offsets (carbon offsets) the GHG produced during the process from raw material mining to combustion with CO2 credits, and is considered to produce no CO2 on a global scale even when burned. The credits are issued by highly reliable international organizations and consist of projects that meet the procurement requirements, quality standards, etc. of the companies that adopt them. These procurement requirements, quality standards, etc., include points such as no significantly adverse effects on the region or ecosystem (in the case of forest projects, avoiding logging and deforestation).

Certificate of Carbon offset city gas SupplyCertificate of Carbon offset city gas Supply

ONO PHARMACEUTICAL CO.,LTD., ONO PHARMACEUTICAL CO.,LTD., system

Initiatives to reduce Scope 3 GHG emissions

Collaboration with business partners is essential to reducing Scope 3 emissions. That is why we are working together with business partners in our supply chain to solve societal issues by promoting sustainability-related initiatives in areas such as the natural environment, human rights, and working conditions (For more details, please see here.).
In the logistics from our distribution centers to pharmaceutical wholesalers, we began joint transportation in compliance with GDP guidelines with four companies in January 2023. This initiative not only enhances the quality assurance of prescription pharmaceuticals, but also improves loading efficiency, leading to a reduction in the number of truck trips and expected CO2 emissions. 
Furthermore, in FY2024, we launched an initiative to consolidate shipping days and reduce delivery frequency, with the aim of strengthening a sustainable logistics system and addressing the “2024 Logistics Problem*.” As a result, transportation efficiency has been further improved, contributing to work style reforms for workers, the stable retention of trucks and drivers, and further reductions in CO2 emissions.

  • The “2024 Logistics Problem” refers to a series of challenges faced by the Japanese logistics industry. Due to stricter regulations on truck drivers’ working hours, there are concerns about driver shortages and impacts on logistics.

 

As part of our GHG reduction efforts, we started using the “GreenEX” service in April 2025, which achieves virtually zero CO2 emissions for travel on the Tokaido, Sanyo, and Kyushu Shinkansen lines. “GreenEX” is a service that uses CO2-free electricity* to make CO2 emissions from Shinkansen travel virtually zero. By introducing this service, we can significantly reduce CO2 emissions from employee business trips. We will continue to promote decarbonization initiatives.

  • CO2-free electricity: Electricity with non-fossil certificates derived from renewable energy sources such as solar power, which do not emit CO2 during generation.
ロゴ
ONO PHARMACEUTICAL CO.,LTD., ONO PHARMACEUTICAL CO.,LTD., system

External evaluation and awards regarding our measures for climate change

  • In the evaluation on climate change conducted by the CDP, a global environmental non-profit organization, we have been selected as an A-List company, the highest rating, for seven consecutive years. (FY2018 - FY2024)
  • Under the Act on Rationalizing Energy Use and Shifting to Non-fossil Energy ("Revised Energy Conservation Act"), we have received the highest S class by the Agency for Natural Resources and Energy for ten consecutive years in corporate energy conservation excellence. (FY2015 - FY2024)
  • We have been selected for the A rank for three consecutive years in the “Fluorocarbon Countermeasures Rating” by the Japan Refrigerants and Environment Conservation Organization, which promotes proper management of fluorocarbons together with the Ministry of Economy, Trade and Industry and the Ministry of the Environment. (FY2015 - FY2024)
  • We were selected as an "Environmentally Sustainable Corporation" in the 5th ESG Finance Awards Japan Environmentally Sustainable Corporation Section (hosted by the Ministry of the Environment) for meeting certain standards for information disclosure. (FY2023, FY2024)
  • The Fujiyama Plant received the “Shizuoka Prefecture Governor's Award for Global Warming Prevention Activities” for raising employee awareness on energy saving and improving equipment operation by visualizing energy consumption and other data at the plant. (FY2023)
  • Our offices in Osaka received the “Osaka Governor’s Award for Climate Change Measures”. (FY2021)
  • The Minase Research Institute received the “Osaka Governor's Osaka Stop Global Warming Award”. (FY2020)
ONO PHARMACEUTICAL CO.,LTD., ONO PHARMACEUTICAL CO.,LTD., system