Objectives and Achievements

Targets and Results of Environmental Activities and Details of Future Actions

1. Rationalization of energy use
Initiative	Targets for the fiscal year ended March 31, 2023	Achievements of the fiscal year ended March 31, 2023	Future initiatives
Initiative1. Rationalization of energy use	Targets for the fiscal year ended March 31, 2023 Continue to receive “A-class or higher” in evaluation system by class under the Energy Conservation Law	Achievements of the fiscal year ended March 31, 2023 Continued to receive “A-classr” (since 2016) (Groupwide average annual energy consumption rate^*1: 98.7%) Omiya Factory: 98.4% Hanyu Factory: 102.2% Okayama Factory: 95.6% Sales and back offices: 100.3%	Future initiatives Manage the monthly energy consumption rate for each factory Upgrade to high-efficiency equipment Detection and treatment of waste

2. Reduction of CO₂ emissions
Initiative	Targets for the fiscal year ended March 31, 2023	Achievements of the fiscal year ended March 31, 2023	Future initiatives
Initiative2. Reduction of CO₂ emissions	Targets for the fiscal year ended March 31, 2023 Reduce CO₂ emission at domestic offices (Scope 1, 2) by 46%^*2 by the fiscal year ending March 31, 2031 (FY2030) compared to the fiscal year ended March 31, 2014 (FY2013) (FY2013: 56,263 tons)	Achievements of the fiscal year ended March 31, 2023 In FY2022, CO₂ emissions in Japan were 50,241 tons (down by 10.7% compared to the baseline year)	Future initiatives Introduction of high-efficiency equipment Examination of new reduction measures

3. Promotion of environmentally friendly logistics operations
Initiative	Targets for the fiscal year ended March 31, 2023	Achievements of the fiscal year ended March 31, 2023	Future initiatives
Initiative3. Promotion of environmentally friendly logistics operations	Targets for the fiscal year ended March 31, 2023 Reduce average annual energy consumption rate associated with transport by 1% or more against the baseline year by the fiscal year ended March 31, 2026	Achievements of the fiscal year ended March 31, 2023 Annual average energy consumption rate^*3 (over 5 years) increase by 4.7% Increase by 23.6% year on year Fiscal year ended March 31, 2022: 0.328 kL/10,000 ton-km Fiscal year ended March 31, 2023: 0.405 kL/10,000 ton-km	Future initiatives Promotion of modal shift Use of trucks with increased load capacity Improvement in fuel efficiency

4. Appropriate management of waste handling
Initiative	Targets for the fiscal year ended March 31, 2023	Achievements of the fiscal year ended March 31, 2023	Future initiatives
Initiative4. Appropriate management of waste treatment	Targets for the fiscal year ended March 31, 2023 Continue to appropriately manage waste treatment operations through status checks and continue waste management self-checks at each office	Achievements of the fiscal year ended March 31, 2023 Waste management self-checks: Conducted at all 13 offices in May	Future initiatives Conducted waste management status inspections at business sites Conducted waste self-inspections once a year at all 13 business sites Continuing to hold waste seminars at each business site

5. Compliance with the Act on Rational Use and Proper Management of Fluorocarbons
Initiative	Targets for the fiscal year ended March 31, 2023	Achievements of the fiscal year ended March 31, 2023	Future initiatives
Initiative5. Compliance with the Act on Rational Use and Proper Management of Fluorocarbons	Targets for the fiscal year ended March 31, 2023 Manage fluorocarbons in accordance with the act	Achievements of the fiscal year ended March 31, 2023 Conducted simple inspections and periodic inspections Calculated degree of leaks (not subject to report)	Future initiatives Conduct inspections Calculate degree of leaks

6. Promotion of environmental risk management
Initiatives	Targets for the fiscal year ended March 31, 2023	Achievements of the fiscal year ended March 31, 2023	Future initiatives
Initiative6. Promotion of environmental risk management	Targets for the fiscal year ended March 31, 2023 Eliminate environmental risks^*4 that have an impact on the external environment	Achievements of the fiscal year ended March 31, 2023 Occurrence of environmental risk: zero	Future initiatives Identify environmental risks and assess their impact Risk prevention measures

7. Promotion of environmental communication
Initiative	Targets for the fiscal year ended March 31, 2023	Achievements of the fiscal year ended March 31, 2023	Future initiatives
Initiative7. Promotion of environmental communication	Targets for the fiscal year ended March 31, 2023 Raise employees’ awareness of the environment through Companywide Environmental Month events and group training events, including environmental seminars held at each branch	Achievements of the fiscal year ended March 31, 2023 July 2022 (summer): Issued energy-saving information February 2023 (winter): Conducted an environment quiz	Future initiatives Hold seminars on environmental education Environmental Month initiative Incorporate environmental communication and activities in daily life, such as saving electricity and reducing resource consumption
Initiative7. Promotion of environmental communication	Targets for the fiscal year ended March 31, 2023 Publicly disclose information on environmental activities in a proper, fair and timely manner	Achievements of the fiscal year ended March 31, 2023 Published an online edition of the Social and Environmental Report (in November)	Future initiatives Disclosing environmental activities on the website Participate in environmental activities held by external organizations

*1. Groupwide average annual energy consumption rate
Omiya Factory (including Research Center): Energy consumption × (revised number of production lots × floor area)
Okayama Factory and Hanyu Factory: Energy consumption / (revised production amount × floor area)
Sales and back offices: Energy consumption / floor area
*2. Revised target in connection with targets being revised by The Federation of Pharmaceutical Manufacturers'Associations of Japan
*3. Average annual energy consumption rate: fuel consumption (kL) / transport distance × weight (10,000 ton-km)
*4. Events that have a certain magnitude, calculated by multiplying the impact of accidents or emergencies whose occurrence would have a significant environmental impact by the probability of such occurrence