Sustainability strategy of pharmaceutical business
Four strategic
focus areas

Products and services

Aspirational goals

We will create innovative, originaldrugs to support patients in theshortest time possible.

Targets

Engaging in R&D Activities
We will continue our efforts and investments into research and development
activities of innovative drugs in specific therapeutic areas.

ProgressSDGs

In June 2023, Shenzhen Salubris Pharmaceuticals Co., Ltd., our license partner, received regulatory approval of enarodustat in China and in July 2023, LEO Pharma A/S, our license partner, has submitted a marketing authorization application for delgocitinib in Europe. In
September 2023, we have filed a manufacturing and marketing approval application in
Japan for in-licensed JTE-061 (tapinarof).

In 2023, we spent 32.2 billion Yen on our research and development activities.
Fostering Ethical AwarenessIn order to develop talent and foster employees’ ethical awareness and sense ofresponsibility towards saving patients, we will continue to learn more about
patients’ needs by engaging in dialogue with medical experts through ourinternal educational activity “For the Patients Project.”

PeopleWe will strive to nurture talent development which enables us to create first-in-class (FIC) drugs.

Community Investment*
Between 2015 and 2030 we will invest US$600 million to help make communities
inclusive and resilient, with our employees contributing 300,000 volunteering
hours.

We provide opportunities for our employees to consider drugs needed on the healthcare
front lines from the patient standpoint. Recently, we carried out interviews with health professionals and representatives of healthcare corporations and children’s hospices, and alsoorganized dementia experiential sessions using VR internally, led by the 11 employees whotook part in our “For the Patients Project” as facilitators.
Since 2015, we invested USD 500 million in our communities and employees volunteered
218,070 hours on company time.

2015

2023

218,070

300,000

Hours spent volunteering

Responsible Promotion of Drugs
We will conduct, among others, regular training programs for our medical representatives in order to provide medical professionals with latest, appropriate information on pharmaceutical products.

Product safety andresponsibility

We will strictly comply with all relevant laws, regulations, and industry
standards in order to deliver safe
drugs to patients.

After their initial training, all of our medical representatives take an e-learning course once amonth to keep their skills and knowledge up-to-date. A recent training subject was designed to assist in understanding and complying with laws and industry rules, such asGuidelines for Sales Information Provision Activities for Ethical Drugs and JPMA Promotion
Code for Prescription Drugs. As of December 31, 2023, a total of 311 employees and contracted medical representatives have taken this training.
Since 2019, we have reduced Greenhouse Gas emissions from our own operations (Scope 1and 2) by 21%, while emissions associated with purchased goods and services (Scope 3Category 1) increased by 3% ※.
2019

2023

2030

-21%

Greenhouse Gas Emissions*
By 2030, we will reduce emissions from our own operations (Scope1 & 2) by 47%
and emissions associated with purchased goods and services (Scope3 Category1)
by 28%, against a 2019 base year.

2023

Scope 1 and 2 GHG emissions

-47%

2019

2030

Scope 3 GHG emissions related to materials procurement and services

-28%

3%

※* Target for Community Investment and Greenhouse Gas Emission are Group-wide targets.

2030

T he increase in the tobacco business, the Group’s leading GHG emitter, was mainly due to temporary procurement
increases from Tanzania and other countries that will require more time to shift to renewable energy sources in the leafdrying process, as a result of business scale expansion and climatic influences.
To shift to renewable energy sources, we have been putting effort into planting in these countries, with projected positiveeffects in the future. By following through on initiatives like this, we project achieving carbon-neutral operations by 2030
and net-zero emissions by 2050.