Addressing Climate Change

Reduction of CO2 Emissions

CO2 and fluorocarbons are the main causes of global warming. The reduction of these emissions is therefore a global issue. As a corporation that has a responsibility toward climate change, the Taisho Group is promoting initiatives to contribute to the achievement of carbon neutrality by reducing CO2 emissions and reducing emissions of fluorocarbons.

Goal
  • In order to achieve the national government's goal of carbon neutrality by 2050, reduce the amount of CO2 emissions (Scopes 1 & 2) by 46%* by the fiscal year ending March 31, 2031 compared to CO2 emissions in the fiscal year ended March 31, 2014
  • *Revised target in connection with targets being revised by The Federation of Pharmaceutical Manufacturers'Associations of Japan

    • Changing the Amount of CO2 Emissions (Scope 1, 2) Produced by Factories and Research Centers in Japan

    In fiscal 2021, we undertook measures such as upgrading to equipment with higher energy efficiency focused on factories and research centers in Japan and reviewing the conditions for using air conditioning. Total CO2 emissions decreased by 11.0% compared with the baseline year due to the partial removal of some factory buildings and other factors, and also decreased 3.5% year on year.

    CO2 Emissions (Scopes 1 & 2) and Basic Unit of CO2
    　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　 　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　 　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　
    Fiscal year 2013 (baseline year) 2019 2020 2021 2022
    Scope 1*1(t-CO2) 26,234 24,841 22,947■ 22,353■ 21,125■
    Scope 2*2(t-CO2) 30,029 31,438 28,940■ 27,732■29,116■
    Total (t-CO2) 56,263 56,279 51,887■ 50,085■50,241■
    Amount of CO2 emissions compared to fiscal 2013 — 104.4% 92.2% 89.0%89.3%
    Basic unit of CO‏2 emissions
    (t-CO2/net sales (millions of yen))    		 0.190 0.225 0.195 0.184 0.187
    • ■indicates information subject to third-party assurance. (Refer to the Company's website)
    • *1 Scope 1 : Direct emissions of greenhouse gases from the Company's business operations
    • *2 Scope 2 : Indirect emissions from use of electricity and fuel provided by other companies
    Overseas Factory CO2 Emissions (Scopes 1*1 & 2*1, *2)
      2019 2020 2021 2022
    PT. Taisho Pharmaceutical Indonesia Tbk Scope 1 8 11 14 336
    Scope 2 2,312 2,138 2,443 2,325
    Total(t-CO2) 2,320 2,149 2,457 2,661
    Hoepharma Holdings Sdn. Bhd. Scope 1 0 0 0 0
    Scope 2 1,940 2,177 2,194 2,715
    Total(t-CO2) 1,940 2,177 2,194 2,715
    Taisho Co., Ltd. Shanghai Scope 1 644 561 604 414
    Scope 2 640 621 655 568
    Total(t-CO2) 1,284 1,182 1,259 981
    Taisho Pharmaceutical (M) SDN. BHD. Scope 1 212 202 244 343
    Scope 2 402 365 459 412
    Total(t-CO2) 614 567 704 755
    Taisho Vietnam Co., Ltd. Scope 1 11 14 15 15
    Scope 2 415 462 602 765
    Total(t-CO2) 426 477 617 780
    UPSA SAS (UPSA) Scope 1 5,084 4,582 3,776 3,744
    Scope 2 1,084 1,146 1,883 1,990
    Total(t-CO2) 6,168 5,728 5,658 5,734
    Douc Hau Giang Pharmaceutical JSC Scope 1 169 141 111 188
    Scope 2 17,067 15,948 16,251 19,111
    Total(t-CO2) 17,236 16,089 16,362 19,300
    Total Scope 1 6,127 5,511 4,764 5,040
    Scope 2 23,861 22,858 24,488 27,886
    Total(t-CO2) 29,988 28,369 29,252 32,926
    • *1. Gas used for calculation: Energy-derived CO2
      Scope1:Uses coefficients stipulated by Japan's Act on Promotion of Global Warming Countermeasures
      Scope2:Uses coefficients obtained from governments, power companies, etc. of each country
    • *2. Location-based method

    Scope 3 CO2 Emissions

    CO2 in the value chain (Scope 3) and basic unit of CO2 emissions
    Category CO2 emissions
    (t-CO2)    		 Basic unit of emissions, etc
    FY2020 FY2021
    Scope 1 22,947 22,353 Uses global warming potential based on the Act on Promotion of Global Warming Countermeasures
    Scope 2 28,940 27,732
    Scope 3      
    1 Purchased products and services 88,999 81,264 Calculated by aggregating each purchased raw material, then multiplying by the basic units
    2 Capital goods 42,792 47,764 Calculated by multiplying the amount of capital investment in the fiscal year by the basic units
    3 Fuel and energy-related activity not included in Scope 1 and 2 4,329 4,211 Calculated by multiplying the amount of used electricity/heat by the basic units for the amount of energy used
    4 Transportation, delivery (upstream) 8,094 7,954 Calculated by multiplying the delivery volume from suppliers to factories, between factories, and from factories to shipping destinations by the basic units
    5 Waste of business activities including manufacturing 525 835 Calculated by categorizing the waste generated by factories and research centers by treatment, then multiplying the weight of treated waste by the basic units
    6 Business trips 538 461 Calculated by multiplying the expense amount supplied to use aircraft (domestic and overseas) by the basic units
    7 Commute of employees 2,438 2,456 Calculated by multiplying the expense amount supplied for commuting expenses for each mode of transportation by the basic units
    8 Lease asset (upstream) Outside scope of calculation —
    9 Transport, delivery (downstream) Outside scope of calculation —
    10 Manufacturing of sold products Outside scope of calculation —
    11 Usage of sold products Outside scope of calculation —
    12 Waste of sold products 936 905 Calculated by multiplying the usage amount of each material at the time of application under the Containers and Packaging Recycling Act by the basic units
    13 Leased assets (downstream) Outside scope of calculation —
    14 Franchises Outside scope of calculation —
    15 Investments Outside scope of calculation —
    • Basic units : Using a coefficient referenced from the Ministry of the Environment's Basic Guidelines on Accounting for Greenhouse Gas Emissions throughout the Supply Chain (Ver. 3.1)
    CO2 Emission Volume Associated with Sales and Transport, etc.
    　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　 　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　 　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　
    Fiscal year 2018 2019 2020 20212022
    Sales (t-CO2) 5,768 4,048 3,711 3,7843,327
    Logistics (t-CO2) 6,345 5,950 5,246 5,3166,537

    Regulation on Saitama Prefecture Global Warming Strategy Promotion Ordinance (Offices in Saitama Prefecture)

    Approximately 80% of Taisho Pharmaceutical’s CO2 emissions are produced within Saitama Prefecture, including the Omiya and Hanyu factories, along with the Research Center.

    At offices in Saitama Prefecture, we are pursuing a reduction in the average amount of CO2 emissions by 20% for the third plan period (fiscal 2020 to fiscal 2024) when compared to the baseline year (average from fiscal 2002 to fiscal 2004) with a system for planning global warming countermeasures in accordance with Regulation on Saitama Prefecture Global Warming Strategy Promotion Ordinance.

    During fiscal 2022, the renewal to high-efficiency equipment resulted in a reduction of 22.3%, exceeding the target in a single fiscal year. If the targets set forth in the third planning period are not achieved, we will respond appropriately to the obligation to make efforts indicated in the “Target-Setting Emissions Trading Program” in Saitama.

    Trends in the Amount of CO2 Emissions for the Second Plan Period for Global Warming Countermeasures
    Fiscal year Baseline year
    (2002–2004)    		 2022
    Emissions*(t-CO2) 48,275 37,526
    Reduction rate (%) — 22.3
    Average reduction rate in the 2nd planning period (%) — 22.4
    • * The calculation for CO2 emissions uses emission coefficients presented in the Regulation on Saitama Prefecture Global Warming Strategy Promotion Ordinance

    Participation in FPMAJ’s Low-Carbon Society Project

    To contribute to a low-carbon society, Taisho Pharmaceutical is participating in the Low-Carbon Society Project led by the Federation of Pharmaceutical Manufacturers’ Associations of JAPAN (FPMAJ).

    Promotion of Environmentally Friendly Offices

    Goal
    Taisho Pharmaceutical will work on improving the energy consumption rate*1, and will continue to receive “A-class or higher”*2 in evaluation system by class under the Energy Conservation Law
    • *1. Energy consumption rate
      Factories, research centers: Energy consumption (kL) / Number of production lots (hundred million) {or production (hundred million yen)} x Floor area (m2)
      Sales and back offices: Energy consumption (kL) / Floor area (m2)
    • *2. In order to continue to receive “A-class or higher,”
      the following conditions have to be avoided:
      · Energy consumption rate of 100% or more for two consecutive years
      · Average consumption rate is 105% or more for five consecutive years

    Taisho Pharmaceutical will continue to work on eliminating CO2 emissions in the medium and long terms, and also on improving the energy consumption rate, for the purpose of using limited energy.

    Change of Energy Consumption Amount (Calorific Value) and Energy Consumption Rate
    Fiscal year 2018 2019 2020 2021 2022
    Energy consumption (calorific value TJ) 1,044 1,041 981 966 967
    Energy consumption rate compared to the previous fiscal year (%) 98.0 103.0 97.0 99.8 98.7
    Average consumption rate for 5 fiscal years (%) 99.6
    Measures to Save Energy and to Reduce CO2 Emissions Implemented in fiscal 2022
      Measures
    Taisho Pharmaceutical Company 1)Upgraded to higher-efficiency devices
    2) Applying LED lighting and promoting turning on the lights partially
    3) Conducting the Cool-Biz Campaign
    Production and Logistic Department 4) Reviewed operating conditions of manufacturing equipment and air conditioning
    5) Upgraded to higher-efficiency devices
    6) Improved activities to combat energy loss (such as fixing air leaks)

    Promotion of Environmentally Friendly Logistics Operations

    Goal
    Reduce average annual energy consumption rate associated with transport by 1% or more by fiscal 2021

    The annual amount we transport as a cargo owner is 30 million ton-km or more, so we fall under the “Specified Shippers” referred to in the Energy Conservation Act.
    We are performing activities such as the promotion of a modal shift (changing transport methods to reduce the burden on the environment), reducing the number of transport occasions, and improvement of fuel efficiency to reduce energy consumption during transport.

    Energy Consumption Rate and Specific Energy Consumption Associated with Transport
    Fiscal year 2018 2019 2020 2021 2022
    Energy consumption (converted to crude oil) (kL) 2,413 2,267 2,002 2,025 3,998
    Transportation amount (10,000 ton-km) 7,169 6,953 6,053 6,183 6,131
    Energy consumption rate* 0.326 0.331 0.328 0.405 0.652
    Change of average consumption rate for 5 fiscal years (%) 117.9
    • * Energy consumption rate: Energy consumption (kL) / Amount transported (10,000 ton-km)

    Control of Fluorocarbon Emissions

    Goal
    • Compliance with the law (simple inspections, periodic inspections, reports on calculated degree of leaks)
    • We endeavor to reduce the degree of leaks by implementing training for all our employees who are in charge of fluorocarbons throughout the Company

    To ensure compliance with the Act on Rational Use and Proper Management of Fluorocarbons, we have established a groupwide system for managing devices using fluorocarbons, etc. and have selected a general manager and assigned responsible managers and management representatives at the respective offices to form a system that allows systemized management.

    Calculated Leaked Amount of Fluorocarbons, etc.
    Fiscal year 2019 2020 2021 2022
    No. of incidents 4 8 6 8
    Calculated leaked amount of fluorocarbons (t-CO2) 75 987 182 116