June 9, 2021

Otsuka Group Complete Introduction of CO2-free Electricityfor All 23 Manufacturing Facilities in Japan- Contributing to a more than 40% reduction in annual CO2 emissions in JapanOtsuka Holdings Co., Ltd. (Head office: Chiyoda-ku, Tokyo; President and Representative Director, CEO:Tatsuo Higuchi) has completed introduction of CO2-free electricity at all manufacturing facilities of fivesubsidiary companies in Japan. Derived from renewable energy sources that do not produce CO2 emissions,CO2-free electricity*1 has been introduced at domestic manufacturing facilities of Otsuka Pharmaceutical Co.,
Ltd., Otsuka Pharmaceutical Factory, Inc., Taiho Pharmaceutical Co., Ltd., Otsuka Chemical Co., Ltd., andOtsuka Foods Co., Ltd.
The Otsuka group of companies has identified climate change, resource recycling and conservation, and water
conservation as important areas (material issues) for environmental initiatives. Regarding climate change, thegoal of a 30% global reduction by 2030*2 is the focus of proactive efforts to reduce CO2 emissions. Adoptionof CO2-free electricity at manufacturing facilities, which tend to produce a higher volume of CO2 emissions,began in July 2019. The recent adoption of CO2-free electricity at the Taiho Pharmaceutical Inuyama
manufacturing facility in Aichi Prefecture completes the introduction of CO2-free electricity at all 23
manufacturing facilities of five Otsuka subsidiary companies in Japan.
In addition to CO2-free electricity, proactive efforts to reduce CO2 emissions include optimization of energy
use through adoption of self-consuming solar power generation, cogeneration, and other fuel conversion
systems*3. These combined efforts are predicted to result in a 41% reduction*4 in CO2 emissions during
FY2021.
Hereafter, proactive implementation of overseas initiatives is planned to ensure achievement of our global
goals. The Otsuka group aims to rely on synergy generated by collaboration among group companies tocontribute to a low-carbon, more sustainable society.

Otsuka Pharmaceutical Tokushima Itano Factory

Taiho Pharmaceutical Kitajima Plant

*1: Includes carbon-neutral electricity utilizing certificates equal to renewable energy that does not emit CO 2.
*2: Compared to group company 2017 levels; applies to CO2 emissions in Japan and overseas.
*3: Systems that use fuels such as natural gas and LP gas to generate power via engines, turbines, fuel cells etc., recovering waste heat as part of theprocess. Recovered waste heat can be used in factories in the form of steam or hot water as heat sources, air conditioning, hot water supply, etc.
The aim is zero-waste use of heat and electricity to achieve high-level comprehensive energy efficiency.
*4: Compared to 2017 figures for five group companies and all subsidiaries in Japan.

Reference

Otsuka Group Climate Change Initiatives

2019 July

Adoption of CO2-free electricity at Otsuka Pharmaceutical Co., Ltd., Otsuka
Pharmaceutical Factory, Inc., Taiho Pharmaceutical Co., Ltd., Otsuka Chemical Co., Ltd.,and Otsuka Foods Co., Ltd. manufacturing and research facilities in Tokushima Prefecture
and the Otsuka Pharmaceutical Co., Ltd. Fukuroi Factory in Shizuoka Prefecture.
(Full adoption at all three Otsuka Chemical manufacturing facilities)

November

Adoption of CO2-free electricity at Otsuka Foods manufacturing facility in Shiga
Prefecture2020 January
February

Five Otsuka Group companies obtain Green Power Certificates
Introduction of cogeneration system at Otsuka Pharmaceutical Factory manufacturing
facility in Toyama PrefectureApril

Adoption of CO2-free electricity Otsuka Pharmaceutical manufacturing facilities in Gunmaand Saga Prefectures(Full adoption at all eight Otsuka Pharmaceutical manufacturing facilities)

July

Adoption of CO2-free electricity at Otsuka Pharmaceutical Factory and Otsuka Foods
manufacturing facilities in Kushiro, Hokkaido

September

Adoption of carbon-neutral electricity at Taiho Pharmaceutical Tsukuba Area drug
discovery site in Ibaraki Prefecture

September

Introduction of self-consuming solar power generation system at Otsuka Pharmaceutical
Factory manufacturing facility in Kushiro, Hokkaido2021 January

Adoption of carbon-neutral electricity at Taiho Pharmaceutical Saitama Site manufacturing
and research facility in Saitama Prefecture

MarchAdoption of CO2-free electricity at Otsuka Foods Gunma Factory(Full adoption at all four Otsuka Foods manufacturing facilities)

May

Adoption of CO2-free electricity at Otsuka Pharmaceutical Factory manufacturing facilityin Toyama Prefecture(Full adoption at all four Otsuka Pharmaceutical Factory manufacturing facilities)

June

Adoption of carbon-neutral electricity at Taiho Pharmaceutical Inuyama manufacturing
facility in Aichi Prefecture(Full adoption at all four Taiho Pharmaceutical manufacturing facilities)-2-