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Environment

Realization of a Decarbonized Society

リード文

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.

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Progress Toward 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*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%.

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

GHG emissions (Scopes 1+2)

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  • * Sites where data on GHG emissions were collected: Fujiyama Plant, Yamaguchi Plant (added from FY2018), Joto Pharmaceutical Product Development Center, 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, the amount of renewable energy certified under the J-Credit Scheme and the Non-Fossil Fuel Certificate quota are deducted.

     

Breakdown of GHG emissions by scope (Market-basis)

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  • * Scope 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), Scope 1 and 2 GHG emissions become 23.0 kt-CO2.

Breakdown of Scope 1 by GHG type

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Energy consumption

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

Electricity consumption and Renewable energy utilization rate

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Initiatives for a Decarbonized Society

Creating a road map for reduction of GHG emissionsTCFD RISK

  • 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)
    In order to achieve our medium- to long-term 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 based on factors such as recent energy market trends, costs and emission factor fluctuation forecasts. Referring to the Greenhouse Gas Management Hierarchy of IEMA, we raised the priority of carbon-neutral energy as compared to credit utilization, and 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.
  • Source of IEMA's GHG Management Hierarchy: Institute of Environmental Management and Assessment (IEMA) Greenhouse Gas Management Hierarchy, first published in 2009 (updated 2020), www.iema.net

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

ReducePromotion of energy-saving activities

Green sustainable chemistry initiativesTCFD OPPORTUNITY

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.

  • 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.
Initiatives to introduce a continuous manufacturing system*4TCFD OPPORTUNITY

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.

  • The continuous manufacturing system is a production method in which raw materials are continuously injected into the manufacturing process and finished products are continuously taken out. Since compact devices are connected and automated, energy saving, production and resource efficiency is expected to be better than batch production, which is the mainstream method in pharmaceutical manufacturing.
  • A numerical value that compares the raw material reduction effect achieved from changing our company’s “wet granulation” process to a continuous one with general batch-type equipment.
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)
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Large-capacity power storage system (Yamaguchi Plant)
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 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.

Introduction of energy-saving equipment
  • 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.
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Module-type heat pump chiller (Minase Research Institute)
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Low air volume (push/pull type), ultrahigh speed variable air volume (VAV) local ventilation device (exhaust fan output visualized on the operation panel) (Minase Research Institute)
Environment-friendly office design
  • When planning our new office in the US, we selected a building that received the LEED*6 Gold Certification. Meanwhile in Japan, our company-owned building in Tokyo has been certified as CASBEE*7 Class S. We will further pursue environment-friendly office design.
  • 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.
  • 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.)

SubstituteIntroducing renewable energy

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

SubstituteProcuring carbon-neutral energy

  • Purchasing electricity under a renewable energy-based electricity menu contract: Minase Research Institute (from FY2019) and Yamaguchi Plant (expanded from FY2022).
  • Introducing carbon neutral city gas: Tsukuba Research Institute (from FY2021) and Joto Pharmaceutical Product Development Center (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. 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 items such as not having significantly adverse effects on the region or ecosystem (in the case of forest projects, avoiding logging and deforestation).

(Source: Created by ONO with reference to materials from Toko Electrical Construction Co., Ltd.)

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Certificate of Carbon Neutral City Gas Supply

CompensateCredit utilization

  • Purchasing Green Energy Certificates (from FY2018), J-Credits (from FY2019) and Non-Fossil Fuel Certificates (from FY2021)
    We are promoting the use of renewable energy by purchasing certificates for electricity generated by renewable energy (Green Energy Certificates) and J-Credits.
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Green Energy Certificate

Carbon pricing

We have incorporated carbon pricing*8 into our environment-related investment decisions. We review and implement carbon pricing on a periodic basis.

  • 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

External evaluation of our climate change-related effortsTCFD OPPORTUNITY

  • In the survey conducted by the UK-based CDP on climate change, we were selected as an A-List company, the highest rating, for four consecutive years (in FY2018-FY2021).
  • 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.
  • Our offices in Osaka won the Osaka Governor’s Award for Climate Change Measures for FY2021.
  • Under the Act on the Rational Use of Energy (Energy Conservation Act), we have received the highest S rank for seven consecutive years in corporate energy conservation excellence (FY2015-FY2021).
  • 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.

External Activities for Expanding the Introduction of Renewable EnergyTCFD OPPORTUNITY

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.

  • JCLP supports the participation and activities of Japanese companies as an official regional partner of RE100.
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GHG Emissions in the Value Chain (Scope 3)TCFD RISK

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).

Category FY2020 emissions
(kt-CO2)
FY2021
emissions
(kt-CO2)
Calculation method Notes
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.
  • * The emission factors used for calculation are figures stated in the "Emission Factor Database on Accounting for Greenhouse Gas Emissions throughout the Supply Chain (FY2020, Ver. 3.1; FY2021, Ver. 3.2)," published by the Ministry of the Environment, Government of Japan.
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