Hirata’s Strategies

Special feature

Taking On the Biological Genetic Resource Business(Mainly Plant Genetic Resources)

For more than 70 years since our founding, we have grown and expanded our business by proposing a manufacturing style that responds to customer needs that change with the times. In order for the Company to achieve sustainable growth amid ever-increasing changes in society, we believe that it is necessary to value traditional businesspractices, more flexibly grasp the needs of society, and actively take on the challenge of new businesses.
During new business development, we consider businesses irrespective of manufacturing framework on the condition that we anticipate the needs of society and contribute to society. The biological genetic resources business(mainly plant genetic resources) has been positioned in the current Medium-Term Management Plan that calls on us
to take on new challenges. Although we are starting from scratch in a completely new field, we will broaden ourperspective as a company and aim for sustainable growth.
Genetic resources are materials derived from plants, animals,
and microorganisms or materials that have functional
units of heredity with real or potential value. When using
genetic resources derived from foreign countries for research
purposes, ABS (access and benefit sharing) procedures arerequired to distribute profits generated from the use of genetic
resources a fair and equitable manner, and any acquisition or
use that does not comply with the laws and regulations of thedonor country can be a serious risk to the researcher and to
Japanese science as a whole. However, since there are many

problems related to ABS procedures, it is a major barrier toresearch on the utilization of genetic resources.
To address these issues, we are currently focusing mainly onplant-based genetic resources, which is a pioneering and rarebusiness condition, even in Japan. By securing comprehensive
acquisition permits for undiscovered and underutilized geneticresources, we can significantly reduce associated risks fordomestic companies, universities, and research institutions.
Note: References definitions from the Convention on Biological Diversity

University ofTsukuba
Guidance/Advice
Commissioned
research

Necessary negotiations
and procedures

Donor Countries
Indonesia and Argentina

Unique ABS
contract modelResearch andDevelopment
Headquarters

Evaluation/Advice

Support for the acquisition of genetic resourcesthat conform to the ABS legal system

Users

Royalties/license fees

Domestic companies, universities, and research institutes

ABS MarketCreation TaskForceExperts in related legal systems,
business feasibility,functionality, and researchand development

Benefits for donor countries

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Benefits for users• Development of national genetic resources based on
global market information• New development of agricultural production andrevitalization of exports• Job creation and revitalization of local economies• Conservation of genetic resources• Simplification of information acquisition and response regarding ABS measures in other countries• Drastically reduces the risk of obtaining patents related togenetic resources• Simplification of procedures required to commercialize results• Shortened research and development time

We are working on commercialization of biological genetic
resource research while receiving objective evaluations,advice, and support from the ABS Market Creation Task
Force, which consists of external experts, and the Universityof Tsukuba. We have already developed several projects
for the sustainable use of plant-based genetic resources inIndonesia and Argentina. The fair and equitable distribution of benefits arising from the use of genetic resources

between the donor country and the user, while ensuring
appropriate access to unused resources, is mutually beneficial. Furthermore, this initiative provides the Company withthe hidden potential benefits of new business development
and participation in new fields.

Hirata Integrated Report 2023

For more information, please visit the website below.
https://www.hirata.co.jp/en/r_and_d/efforts