SHIONOGI

Environment Report

2023
January 2024

il
Bu

d

I
g
n
i

nn

ion
t
a
ov

orm
f
t
a
Pl

ape
h
S
s to

of Healthcare
e
r
u
t
u
th e FSHIONOGI Environment Report 2023（https://www.shionogi.com/global/en/sustainability/environment.html）

SHIONOGI Environment Report 2023
Contents
Management Commitment
Message from the Representative Director, President and CEO ・・・・・・・・・・・・・・・・・・・・・ 4
and the Corporate Ofﬁcer in charge of EHS
TopicsRecognized by CDP as an “A List Company,” the highest rating, in both the ・・・・・・・・・・・ 7
ﬁelds of “Climate Change” and “Water Security,” and selected for inclusion on
the “Supplier Engagement Leaderboard,” the highest rating in the “Supplier
Engagement Rating”
Certiﬁed as the First Eco-First Company in the Pharmaceutical Industry as an ・・・・・・・・・・・ 8
Environmentally Advanced Company
First application of a horizontal recycling scheme for label mounts to labels ・・・・・・・・・・・・ 9
for ampoule injections
Climate Change Strategies
SHIONOGI Groupʼs Climate Change Strategies ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 10
Environmental management
Governance ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 17
Risk Management ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 20
Environmental Materiality ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 22
Action Targets ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 25
Results
AMR ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 30
Climate Change・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 34
Water・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 40
Resource Conservation and Circulation・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 44
Chemical Substances ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 51
Pollution Prevention ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 54
Biodiversity ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 56
Editorial Policy ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 60

The URLs listed in this report are as of October 2023.
The linked information may be updated in the future.
1

SHIONOGI Environment Report 2023（https://www.shionogi.com/global/en/sustainability/environment.html）

Environment

SHIONOGI Group’s Environmental Initiatives

Under the Company Policy (SHIONOGI Group Heritage) of “SHIONOGI strives constantly to supply the best
possible medicine to protect the health and wellbeing of the patients we serve,” we have formulated theSHIONOGI Group EHS Policy and the SHIONOGI Group EHS Code of Conduct. Our belief is that we should
conduct business activities in a manner that gives consideration to protection of the global environment as wellas the health of all people working with us and the health and safety of local communities in order to realize“Engagement in environmental issues” and “Optimization of work practices and enhancement of the workplaceenvironment” in the SHIONOGI Group Code of Conduct.
In addition, we have identi ed “Protect the environment” as one of the SHIONOGI Group’s material issues(materiality), which support the realization of a sustainable society and the growth of the SHIONOGI Group. We
have also identi ed the four material issues of “AMR,” “climate change,” “resource conservation and circulation,”and “water” as our Environmental Materiality, within which we have extracted environmental issues to beprioritized. We aim to realize a sustainable society through all business activities, including our supply chain, by
re ecting the above-mentioned four material issues in the environmental category of the SHIONOGI Group EHS
Action Targets, which are medium- and long-term targets for EHS, and working to implement them.

SHIONOGI Group Heritage / SHIONOGI Group Code of Conduct
Material Issues (Materiality)
SHIONOGI Group EHS Policy
SHIONOGI Group EHS Code of Conduct
Supply Chain Management

2

SHIONOGI Environment Report 2023（https://www.shionogi.com/global/en/sustainability/environment.html）

3

SHIONOGI Environment Report 2023（https://www.shionogi.com/global/en/sustainability/environment.html）

Management Commitment–

SHIONOGI’s commitment to realizing a sustainable society

Considering the opening sentence of the SHIONOGI Group Heritage (The Company Policy of
SHIONOGI) of “SHIONOGI strives constantly to supply the best possible medicine (healthcare
solutions) to protect the health and wellbeing of the patients we serve” to be the purpose of
the group, SHIONOGI works to resolve health and medical problems for patients, their families,
everyone involved in medical care, and society as a whole. As the SHINOGI Group Vision forwhat we want to be in 2030 (2030 Vision), we have set the goal of “building innovation
platforms to shape the future of healthcare.” We formulated the medium-term business plan
STS2030 in June 2020 as a concrete strategy for realizing this goal, and have promoted
company-wide e orts to achieve the vision. Three years have passed since the formulation of
STS2030, and concrete results have been produced, such as the provision of new therapeutic
drugs for COVID-19, which has been a major social problem, and the submission of
manufacturing and marketing approval for a COVID-19 vaccine. Since the path to realizing the2030 Vision has become clearer, we updated STS2030 and re-formulated it as STS2030 Revisionin June of this year. To ensure SHIONOGI’s sustainable growth, we will continue to create newvalue that resolves social issues surrounding healthcare and to promote initiatives to deliver it
to everyone around the world.
“Contributing to a sustainable society” is an important theme that we must ful ll with responsibility as a company, along with“sustainable corporate growth.” Regarding the environment in particular, we are deeply aware of the importance of minimizing thenegative impacts (resource depletion, environmental pollution, etc.) caused by the group’s business activities as a corporate groupthat employs natural capital to operate its business. SHIONOGI has identi ed “Protect the environment” as one of its material
issues (materiality). Based on this, we are sincerely facing various environmental issues and taking responsible measures toaddress them, including tackling climate change, which is an urgent global issue, reducing the release of chemical substances into
the environment during the pharmaceutical manufacturing process, which is a unique issue for pharmaceutical companies, andpromoting resource conservation/recycling and biodiversity conservation, including marine plastic pollution reduction.
SHIONOGI has also made group-wide e orts to address environmental issues, such as ongoing initiatives to reduce the release of
antimicrobials into the environment from our manufacturing facilities, the implementation of measures to achieve our greenhousegas emission reduction targets, and response to information disclosure based on the TCFD*1 recommendations. In recognition ofthese e orts, in FY2022, we were the rst pharmaceutical company to be certi ed as an Eco-First Company by the Minister of theEnvironment. In addition, we received the highest rating of A from CDP*2 in both the elds of “Climate Change” and “Water
Security.” We are extremely honored that the group’s initiatives have been highly praised by our external stakeholders.
We will continue to strengthen engagement with our stakeholders and ful ll our social responsibilities by addressing climatechange and other environmental issues in order to become a company that will be needed in the future.
*1 Task Force on Climate-related Financial Disclosures (TCFD)*2 A non-pro t organization whose main activities involve requesting companies and local governments to disclose information on
their actions for climate change control, water resources protection, forest conservation, and other environmental issues based on
the request of institutional investors and major corporate clients around the world with a strong interest in environmental issues,
thereby promoting actions to tackle environmental issues

4

SHIONOGI Environment Report 2023（https://www.shionogi.com/global/en/sustainability/environment.html）

SHIONOGI’s EHS*3 activities toward realizing a sustainable
society–

SHIONOGI has identi ed “Protect the environment” as one of its material issues (materiality) tobe addressed to reduce the negative impacts on customers and society. In the medium-termbusiness plan STS2030 Revision, we also focus on the environment as a response tosustainability issues. Furthermore, through the analysis of SHIONOGI’s business characteristics
and changes in the external environment, as well as dialogue with external stakeholders andrelated parties within the group, we have identi ed the four material issues of “AMR,”*4“climate change,” “resource conservation and circulation,” and “water” as our Environmental
Materiality, which should be more prioritized among environmental issues, to promote
activities to resolve the issues.
In FY2022, we revised SHIONOGI EHS Policy to further clarify the purpose and signi cance,
management’s commitment, promotion structure, and compliance with related laws andregulations regarding SHIONOGI’s EHS activities that deal with the environment andoccupational health and safety.
We also established the SHIONOGI Group EHS Code of Conduct, which speci es concrete actions for employees to promote EHS
activities. Thus, we have developed the foundation for EHS, including the identi cation of material issues, the formulation of the
EHS policy and code of conduct, and the setting of speci c EHS action targets (single-year, medium- to long-term), in addition to
the formulation of the SHIONOGI Group Heritage, which is our management philosophy. Furthermore, based on therecommendations of the TCFD, for which we expressed support in FY2021, related organizations of SHIONOGI collaborated to
conduct a detailed assessment of the impact of climate change on the group’s business with reference to the TCFD framework andconsider strategies and speci c countermeasures against it. We also focused on responding to the demands of society by disclosing
the results of our assessment. We believe that by taking these responses, we have strengthened the foundation for SHIONOGI to
responsibly deal with environmental issues, which are common global issues that transcend generations and cannot be reversed.
Meanwhile, in FY2022, COVID-19-related R&D and manufacturing activities increased more than expected. As a result, we wereunable to achieve the target values for several environment-related items set as FY2022[A1] EHS action targets, such as energy andwater consumption and waste generation. As the Corporate O cer in charge of EHS, I take seriously the fact that last year’s targets
were not achieved. In FY2023, we will once again consider how to reduce environmental impact and e ciently use natural capital.
We will continue to implement initiatives such as switching to electricity derived from renewable energy, optimizing manufacturing
processes, increasing the e ciency of cleaning methods for manufacturing equipment, and promoting the horizontal recycling oflabel mounts, which is Shionogi Pharma’s initiative, to further strengthen our activities to minimize our impact on the environment
as much as possible. In addition, given that the global trend surrounding environmental issues is extremely rapid and that thebusiness environment surrounding SHIONOGI is changing signi cantly, we plan to review and update the EHS Action Targets, whichwere formulated in 2020, to more strategically promote SHIONOGI’s environmental initiatives. In this context, we intend toincorporate biodiversity, which has received increasing attention in recent years, as one of the targets, and consider how to
respond to biodiversity as a strategic initiative that contributes to the realization of Nature Positive.
SHIONOGI contributes to the health of people and the maintenance of the global environment through its business activities,
thereby achieving both the realization of a sustainable society and the growth of the company. Furthermore, we will continue totake responsible action and enhance our information disclosure to strengthen our engagement with all of our stakeholders. We will
also work to continue to improve corporate value so that we can become a company that is needed in the future.
*3 EHS: Environment, Health and Safety*4 AMR: Antimicrobial Resistance5

SHIONOGI Environment Report 2023（https://www.shionogi.com/global/en/sustainability/environment.html）

6

SHIONOGI Environment Report 2023（https://www.shionogi.com/global/en/sustainability/environment.html）

TopicsRecognized by CDP as an “A List Company,” the highest rating, in both the elds of “Climate Change” and“Water Security,” and selected for inclusion on the “Supplier Engagement Leaderboard,” the highest ratingin the “Supplier Engagement Rating”
We continued to be praised for its e orts to address climate change and water security, and received the highest rating of “A” inboth categories of “Climate Change” and “Water Security” from CDP,*1 an international NPO promoting environmental information
disclosure. In addition, wewere selected for the third consecutive year for inclusion on the “Supplier Engagement Leaderboard,”
which is the highest rating in the CDP’s Supplier Engagement Rating (SER), in the category of “Climate Change.”
Under its Company Policy and its Code of Conduct, the SHIONOGI Group has identi ed “Protect the environment” as one of its
material issues (materiality) to be addressed, and promotes environmental initiatives in all business activities. We have alsoestablished the SHIONOGI Group Business Partner Code of Conduct and have promoted activities that encourage our business
partners in the supply chain to comply with it. We believe that these continuous e orts were highly evaluated, as was the case lastyear.

*1 CDPCDP is a non-pro t organization whose main activities involve requesting companies and local governments to disclose informationon their actions for climate change control, water resource protection, forest conservation, and other environmental issues basedon the request of institutional investors and major corporate clients around the world with a strong interest in environmental
issues, thereby promoting actions to tackle environmental issues. CDP is now one of the world’s most useful information disclosure
platforms on environmental issues.
See this website for details. (External website)

7

SHIONOGI Environment Report 2023（https://www.shionogi.com/global/en/sustainability/environment.html）

Certi ed as the First Eco-First Company in the Pharmaceutical Industry as an Environmentally Advanced
Company
Under the Eco-First Program*2 promoted by the Ministry of the Environment, we submitted the Eco-First Promise that summarizes
its environmental conservation initiative goals to the Minister of the Environment, and on April 5, 2023, it became the rst
pharmaceutical company to be certi ed as an Eco-First Company.

This Eco-First Company certi cation means that the SHIONOGI Group’s environmental initiatives, such as those described below,
and its commitment to the future were evaluated as “advanced, unique, and industry-leading,” which is a requirement forcerti cation:- Proper management of the release of antimicrobials into the environment, which we have worked on responsibly as a company
that handles infectious disease drugs- Actions against climate change- “Resource Recycling Project (horizontal recycling of label mounts)” of Shionogi Pharma Co., Ltd.
- “Reforesting Kombu Project (conservation of natural Gagome kombu)” of Shionogi Healthcare Co., Ltd.
See the website of the Ministry of the Environment (Eco-First Program > Promise of Each Company [in Japanese]) (env.go.jp) for
more information on the Eco-First Promise we submitted. (External website)*2 Eco-First Program
A program under which the Minister of the Environment certi es companies that pledge to the minister their own environmental
conservation initiatives, such as global warming countermeasures and waste/recycling countermeasures, and conduct advanced,
unique, and industry-leading business activities in the eld of the environment (environmentally advanced companies in theindustry) as Eco-First Companies

8

SHIONOGI Environment Report 2023（https://www.shionogi.com/global/en/sustainability/environment.html）

First application of a horizontal recycling scheme for label mounts to labels for ampoule injections
In March 2023, Shionogi Pharma Co., Ltd. applied the horizontal recycling*3 scheme for recyclable label mounts*4 to labels forcommercially produced ampoule injections for the rst time, and began collecting used label mounts. This is the result of Shionogi
Pharma’s participation in the Resource Recycling Project*5 aimed at horizontally recycling label mounts and in demonstration
experiments.
By gradually expanding the application of this scheme to labels for nine types of ampule injections of the SHIONOGI Group,
Shionogi Pharma is expected to contribute to the reduction of waste generated (about 0.5 tons/year), the improvement of thereuse/recycling rate of waste plastic, and the reduction of CO2 emissions (about 0.5 tons/year). In addition, we will make further
contributions by expanding the horizontal recycling scheme to labels for other medical drugs, including vials and packaging boxes.

*3 Recycling whereby used products are processed into raw materials to recreate the same type of products. It is generally di cultto recycle label mounts because they are coated with a resin material to prevent them from adhering to the label glue.
*4 Label mounts (release paper, separator) to protect the adhesive side of the label.
*5 A cross-industry collaboration project that considers and promotes environmentally friendly initiatives to eliminate label mountwaste by replacing label mounts, which have previously been discarded or incinerated without being collected or reused asresources, with “recycle-speci c mounts” made from recycled PET.

9SHIONOGI Environment Report 2023（https://www.shionogi.com/global/en/sustainability/environment.html）

SHIONOGI Group’s Climate Change Strategies
Climate Change Countermeasures as Part of Management Strategy
In March 2022, the SHIONOGI Group announced its support for the TCFD*1 recommendations and participated in the TCFD Consortium, in which
companies and nancial institutions in Japan that support the TCFD recommendations work together to promote initiatives.
In FY2022, we launched a project that involved organizations related to management strategy and procurement, and analyzed the scenarios
using two levels of temperature increase, 1.5°C and 4°C, based on social trends toward decarbonization with reference to the TCFD framework.
We also discussed climate change strategies, which included identifying and assessing climate change risks and opportunities, evaluating
nancial impact, and formulating policies on how to respond to the risks.

*1 Task Force on Climate-related Financial Disclosures: An organization established by the Financial Stability Board (FSB) in response
to a request from the G20 to discuss how climate-related information should be disclosed and how nancial institutions should
respond.
The SHIONOGI Group also promotes appropriate information disclosure in accordance with the TCFD recommendations, and for reference, thenumber of the disclosure items recommended by the TCFD is listed in parentheses at the end of each item.
Recommendations | Task Force on Climate-Related Financial Disclosures (fsb-tcfd.org) (External website)

SHIONOGI Group Governance System and Risk Management
As a mechanism to bolster management strategy and business foundation, the SHIONOGI Group has established an Enterprise Risk
Management (ERM) system, which oversees the risks across the entire group. Regarding risks and opportunities, including climate change, that
may have a signi cant impact on the future business environment of the SHIONOGI Group, we assess them in the ERM system in terms ofimportance, likelihood, and other factors. We ensure that measures for such risks and opportunities are implemented, and the progress of suchmeasures is reported to the Board of Directors after deliberation at the Corporate Executive Management Meeting.

10

SHIONOGI Environment Report 2023（https://www.shionogi.com/global/en/sustainability/environment.html）

In addition, we have established an integrated EHS management
function that uni es and manages various activities related to theenvironment, health, and safety (“EHS”). The progress of speci cmeasures against climate change risks is managed by this EHS
function. The Senior Executive O cer and Senior Vice President,
Administration Division is appointed as the Corporate O cer in Chargeof EHS, who also heads the SHIONOGI Group Companywide
EHS Committee*2 and the Energy Conservation Committee*3. We have asystem in place to ensure thorough and in-depth discussions. Decisions
made by each of these committees, which are held at least four times
a year in total, are reported to the CEO. Matters required fordeliberation at an upper-level meeting are presented at the Corporate
Executive Management Meeting.

See the sections Risk management and Governance for more information on the ERM system.
(Governance: Recommended disclosures a and b)(Risk management: Recommended disclosure c)*2 SHIONOGI Group Companywide EHS Committee: An organization that deliberates on and approves important EHS matters acrossthe whole group, which include environmental policies, medium- and long-term targets, performance review, identi cation ofenvironmental issues, and environmental risk assessment*3 Energy Conservation Committee: An organization that is placed under the SHIONOGI Group Companywide EHS Committee anddeliberates on matters concerning climate change and energy conservation

11

SHIONOGI Environment Report 2023（https://www.shionogi.com/global/en/sustainability/environment.html）

Consideration of the SHIONOGI Group’s Climate Change Strategies
Process to identify and assess risks and opportunities and to develop countermeasures
In our climate change scenario analysis, we thoroughly identify transition risks, physical risks, and opportunities that climate change may bringto our business activities. After evaluating the nancial impact and business resilience regarding each identi ed item in the 1.5°C and 4°C
scenarios, we assessed the priority of response to such risks and opportunities and developed response policies and countermeasures. The
process from identifying these risks and opportunities to formulating countermeasures as well as other important matters are reported to andapproved by the Corporate Executive Management Meeting and the Board of Directors.
(Risk management: Recommended disclosures a and b)

Details on how to proceed with scenario analysis
We conducted a scenario analysis to understand risks and opportunities for the future business of the SHIONOGI Group. We have assessed theimpact on our business as of the year 2030 with reference to the following reference sources.
・1.5°C scenario: The average temperature increase is kept below 1.5°C in 2100 compared to the pre-industrial level.
- Reference climate scenarios: IEA*4-NZE, IPCC*5-1.5, and IPCC AR6 SSP*61-1.9, and the like
- More rigorous measures (including carbon tax and environmental regulations) are introduced, and the society as a whole proactively works on
measures to tackle climate change.
・4°C scenario: The average temperature rises by 4°C in 2100 compared to the pre-industrial level.
- Reference climate scenarios: IPCC AR6 SSP3-7.0/SSP5-8.5 and the like
- Stricter measures (including carbon tax and environmental regulations) are not introduced, resulting in more severe and frequent natural
disasters (a world of “Take it as it comes”)*4 IEA: International Energy Agency*5 IPCC: Intergovernmental Panel on Climate Change*6 SSP: Shared Socioeconomic Pathway

External
environment
surrounding theSHIONOGI Group

Table 1： Anticipated changes in the external environment under the 1.5°C and 4°C scenarios
1.5°C scenario

4°C scenario

Stronger policies to achieve carbon neutrality by
2050 (such as introducing carbon tax, increasing
the renewable energy ratio, and stepping up
energy conservation e orts)

More powerful policies to deal with catastrophic
disasters (regulations, subsidies, and other policy
support)Investment/lending
institutions

Requests more demanding than policies toward
carbon neutrality

Although there is pressure to respond to thedeteriorating natural environment as climatechange advances, the pressure is not strong
enough to a ect investment and lending
decisions.

Society

Changes in values (consumption propensity)
brought by a decarbonized society

The same situation as the current one

Gradual changes in climate

More severe and frequent natural disasters andchanges in precipitation patterns

Policies andregulations

Natural environment

12

SHIONOGI Environment Report 2023（https://www.shionogi.com/global/en/sustainability/environment.html）

Targets of scenario analysis
Our analysis covers each plant of the SHIONOGI Group in Japan and overseas as well as the supply chains related to the group’s key products.

Assessing and Identifying risks and opportunities
Table 2 below shows the results of our assessment of risks and opportunities related to climate change using the 1.5°C and 4°C scenarios.
We have identi ed three items as risks and opportunities stemming from climate change with relatively large nancial impact: 1) introductionof carbon pricing, 2) impact of locally abnormal weather and temperature rise on raw material procurement, and 3) rising sea levels. If all theidenti ed risks and opportunities materialize, the nancial impact on the core operating pro t targeted for 2030, the nal scal year of the
SHIONOGI Group’s medium-term business plan STS2030, was estimated to be just around 10%. The STS2030 Revision, which was revised inJune 2023, aims to further expand earnings compared to STS2030. Therefore, we judge that the resilience of our business against the climatechange scenarios that can be expected in the future is su ciently secured.
(Strategy: Recommended disclosures a, b, and c)
Table 2： Overview of assessment of risks and opportunities related to climate change
Single-year nancial impact for FY2030*7
Main risks
Detailsof
anticipated
risks
and
and
1.5°C
opportunities
4°C scenario
Remarks
opportunities
scenario

Classi
catio
n

T
r
a
n
s
i
t
i
o
n
r
i
s
k
s

P
o
l
i
c
y

Introductionof carbon
pricing

New regulations put in place on
manufacturing, procurement, andother business activities, such as
introducing and expanding carbon
taxes, emissions regulations, andemissions trading systems

MediumSmall

Tougherenergysaving
regulations

Energy-saving regulations for
production facilities becoming
tougher than the annual average
reduction of 1% or more in energy
consumption per unit required by
the current Act on Promotion of
Global Warming Countermeasures,
resulting in additional capital
investment

Small

Small

13

Approximatel
y 5.5 billion
yen*8 in the
anticipatedworst casescenario for
Scopes 1-3 oftheSHIONOGI
Group (in the
1.5°C
scenario)SHIONOGI Environment Report 2023（https://www.shionogi.com/global/en/sustainability/environment.html）

Table 2： Overview of assessment of risks and opportunities related to climate change
Single-year nancial impact for FY2030*7
Main risks
Detailsof
anticipated
risks
and
and
1.5°C
opportunities
4°C scenario
Remarks
opportunities
scenario

Classi
catio
n

P
h
y
s
i
c
a
l
r
i
s
k
s

O
p
p
o
r
t
u
n
i
t
i
e
s

A
c
u
t
e

C
h
r
o
n
i
c

M
a
r
k
e
t

Impact on
raw material
procurement
due to locallyabnormalweather andrisingtemperatures

Procurement of biological raw
materials becoming di cultbecause of the adverse e ects ofrising temperatures on growth andyield, quality, price, and otherfactors

MediumMediumDamage tosupply chain
facilities due
tointensifying
storm andood
damageDisruption or suspension of supply
chain operations caused by locallyabnormal weather (such as
typhoons and sudden downpours)
and associated disasters(equipment damage, ooding,power outages, and other damage)

Small

Small

Rising sea
levelsPlants or other operating sites
becoming inoperable due to rising
sea levels

Large

Large

The
identi ed
risk is basedon the worst
case scenario
in which an
operatingsite, such asa plant, must
be relocated.
The
identi ed
opportunity
is based ontheassumptionthat drugs totreat NTDs
(Neglected
Tropical
Diseases) will
be developed
andlaunched.

Cultivation of
new markets
and regions
through
research anddevelopmentof new
medicinal
products

Application of the technologies
and know-how that the SHIONOGIGroup has cultivated to treatmentof other diseases

Small

Small

Switching toecofriendly
low-carbon
containers
andpackaging

Cost reduction resulting from
replacement with environmentallyfriendly packaging materials

Small

Small

14

The
identi ed
risk is basedon theassumptionthat lysate
reagents
used inqualitytesting areunavailable.

SHIONOGI Environment Report 2023（https://www.shionogi.com/global/en/sustainability/environment.html）*7 Financial impact: Large: 10 billion yen or more; Medium: 1 billion yen to less than 10 billion yen; Small: less than 1 billion yen*8 The estimated gure is based on a carbon tax internally calculated as 16,523 yen/t-CO2 with reference to the IPCC Special Reporton Global Warming of 1.5°C.
Table 3 below describes the SHIONOGI Group’s response policy regarding the three items that have a relatively large nancial impact: 1)
introduction of carbon pricing, 2) impact of locally abnormal weather and temperature rise on raw material procurement, and 3) rising sea
levels.

Identi ed risk

Introduction ofcarbon pricing

Impact on raw
material
procurement due tolocally abnormal
weather andtemperature rise

Rising sea levels

Table 3: SHIONOGI Group’s policy on how to respond to identi ed risks
Classi cationof risk
Remarks on established policies
response
policyRisk
reduction

The possibility of the identi ed risks becoming real in the medium term is relatively
high, since carbon pricing has already been introduced in some countries and isunder consideration in Japan. Therefore, we will mitigate the risks by implementing
medium- to long-term activities to reduce our greenhouse gas (GHG) emissions.

Risk
retention

We have de ned the worst case scenario as the situation where quality testing
cannot be conducted because lysate reagents made from the blood components ofhorseshoe crabs cannot be procured due to their decreasing population caused byclimate change, leading to the suspension of shipments of some of our main
medicinal products. However, reagent manufacturers are engaged in activities topreserve horseshoe crabs. Also, even if procurement of lysate reagents becomesdi cult, alternative reagents using genetically modi ed proteins exist. Therefore,
although the long-term possibility cannot be ruled out, we will retain the risk,
judging that the probability of the risk manifesting by 2030 is extremely low at thispoint.

Risk
retention

There is no doubt about the long-term trend of rising sea levels caused by climatechange, and we have set the worst case scenario as the situation where sea level rise
may adversely a ects operations at some of our key manufacturing sites located inparticularly low-lying areas above sea level. However, the average sea level rise along
the coasts of Japan over the period from 2031 to 2050 is projected to be less than
0.2 m. Therefore, although the long-term possibility cannot be ruled out, we willretain the risk, judging that the probability of the risk manifesting by 2030 isextremely low at this point.

Carbon tax (carbon pricing)
We have internally estimated the carbon tax for 2030 to be 135 USD/t-CO2 with reference to the IPCC Special Report on Global Warming of
1.5°C. The estimated carbon tax of 18,162 yen/t-CO2 is based on an exchange rate of 134.53 yen/USD as of the end of March 2023. This value
was used to estimate the nancial impact associated with carbon tax.

15

SHIONOGI Environment Report 2023（https://www.shionogi.com/global/en/sustainability/environment.html）

Metrics and Targets for the SHIONOGI Group Climate ChangeCountermeasures

As mentioned above, we conducted a detailed assessment of the impact of climate change on the SHIONOGI Group’s business using the TCFD
framework as a reference. As a result of considering strategies and speci c countermeasures, we have set “reduction of GHG (CO2) emissions”
as a metric for reducing risks related to climate change. In addition, in response to the Japanese government’s declaration of “Carbon
Neutrality by 2050” and the worldwide movement toward reducing CO2 emissions, we believe that the SHIONOGI Group also needs to aim forcarbon neutrality by 2050.
・Metric:- GHG (CO2) emissions reduction (FY2019 benchmark)・Targets:- Reduce GHG emissions (Scopes 1 and 2) by 46.2% by FY2030 compared to FY2019.
- Cut down GHG emissions (Scope 3, Category 1: Purchased products and services) by 20% by FY2030 compared to FY2019.
To improve energy e ciency, we also aim to improve energy intensity by 1% per year and to introduce equipment with high energy
consumption e ciency.Please see the section "Climate Change" for yearly activity progress.
・Other targets regarding climate change countermeasures:- Reduce energy consumption and improve energy e ciency.
・Promotion of energy conservation e orts to reduce energy intensity by 1% per year
・Promotion of the introduction of high-e ciency equipment- Reduce GHG emissions.
・Promotion of the introduction of renewable energy
・Promotion of the introduction of high-e ciency equipment(Metrics and Targets: Recommended disclosures a, b, and c)*9 SBTs (Science Based Targets): CO2 emissions reduction targets based on scienti c data

＊ Targets approved by the SBT initiative

Related Press Releases
SHIONOGI’s Greenhouse Gas Reduction Target Approved by “Science Based Targets (SBT) Initiative” (January 4, 2021)
Shionogi expresses its support for the recommendations of Task Force on Climate-related Financial Disclosures (TCFD) and its participation in
the TCFD Consortium (April 11, 2022)

16

SHIONOGI Environment Report 2023（https://www.shionogi.com/global/en/sustainability/environment.html）

Governance
Governance Structure

To ensure business execution based on appropriate management judgment, Shionogi has chosen to establish a company with a Board of
Corporate Auditors. This is because it will enhance the auditing function of the corporate auditors and the monitoring function of the Internal
Control Department, which has an internal auditing function, and promote the smooth functioning of the management monitoring systemthrough cooperation between them.
See the section “Corporate Governance” for details.
In the SHIONOGI Group, a system is in place that allows the Corporate
Executive Management Meeting to deliberate on its initiatives for theenvironment, health, and safety (“EHS”) before the Board of Directors
makes nal decisions on them. We have appointed the Senior
Executive O cer in charge of EHS as a Corporate O cer who
supervises overall EHS management in an integrated manner.
The Corporate O cer in charge of EHS heads the SHIONOGI Group
Companywide EHS Committee, which comprises representatives fromthe group’s respective operating sites, who are appointed as personnel
in charge of EHS, and presidents from Group companies. The
SHIONOGI Group Companywide EHS Committee sets targets for EHS,
identi es Environmental Materiality, and conducts management
reviews, thereby promoting EHS activities.

17

SHIONOGI Environment Report 2023（https://www.shionogi.com/global/en/sustainability/environment.html）

In addition, the Energy Conservation Committee, chaired by the Corporate O cer in charge of EHS and placed under the SHIONOGI Group
Companywide EHS Committee, assumes duties such as setting medium- and long-term targets, managing progress, and assessing the status oflegal and regulatory compliance regarding measures for energy conservation and global warming control. The operation of these twocommittees is under the jurisdiction of the Sustainability Management Department, which promotes the SHIONOGI Group’s ESG initiatives andstrengthens its EHSmanagement system.
The results of deliberations by the above committees and matters related to EHS that have a large impact on management are reported to the
Corporate Executive Management Meeting or the Board of Directors by the Senior Executive O cer in charge of EHS and the Head of the
Sustainability Management Department, who is an EHS overall management representative.

Environmental / Occupational Safety and Health Management Systems
The SHIONOGI Group uses ISO 14001, ISO 45001, and in-house environmental management systems established in conformity with them. The
SHIONOGI Group’s EHS activities, including risk management, are reviewed as a whole once a year by the SHIONOGI Group Companywide EHS
Committee to verify the e cacy and suitability of the EHS initiatives. Matters that have a major impact on management are deliberated by the
Corporate Executive Management Meeting before nal decisions are made by the Board of Directors.
The acquisition status of certi cation of our management systems is summarized in the table below.
Settsu Plant

Kanegasaki Plant

Tokushima Plant

Itami Plant

ISO 14001

〇

〇

〇

〇

ISO 45001

〇

〇

〇

ー

○：Acquired

AuditsThe SHIONOGI Group conducts audits of each operating site of the group and its suppliers using multiple approaches to check their EHS
promotion status, as shown in the table below.
External audits

Conducted by external accreditation organizations to verify that the group’s ISO 14001- and ISO
45001-certi ed management systems are operated in conformity with the standards

Internal audits

In-house self-inspection required under ISO 14001 and ISO 45001 conducted to con rm system
suitability and the status of conformity

EHS audits

Conducted by the division that supervises the SHIONOGI Group’s EHS initiatives, as directed by the
management team, separately from internal audits, to check whether EHS activities in the SHIONOGIGroup are appropriately implemented and maintained in compliance with the management systems
while pursing continuous improvement

EHS audits of suppliers

Audits of the SHIONOGI Group’s suppliers of raw materials, intermediates, APIs, products, etc.
conducted in compliance with the PSCI Principles

In addition, as part of AMR Industry Alliance activities, we inspect our antimicrobial release control and management. See the section “AMR” fordetails.
18

SHIONOGI Environment Report 2023（https://www.shionogi.com/global/en/sustainability/environment.html）

To enable a fairer and more objective CSR assessment, we implement “EcoVadis,” a rating platform for assessing corporate social responsibility
and sustainable procurement, and sequentially make assessment of our business partners in order of priority. See the section “Supply Chain
Management” for details.

Emergency Preparedness
The SHIONOGI Group Risk Management Policy stipulates that in the event of a crisis, we should place top priority on protecting human life andensuring safety, promptly take measures to minimize damage and prevent recurrence, and continue business operations as principles of action.
To respond to emergencies, such as earthquakes, pandemics, and corporate scandals, we have established emergency response guidelines andmanuals with a focus on respect for human life, consideration for and contribution to the local communities, and business continuity. In
anticipation of emergencies, we have established communication and reporting systems. We regularly carry out emergency responsivenesstraining and review response procedures. In FY2022, disaster drills were conducted at each operating site, following a simulated scenario of anearthquake-triggered tsunami or re.

Comprehensive disaster drill (Shionogi Pharma Kanegasaki Plant)

Education
In order to promote EHS activities, we believe it is essential that individual employees be fully aware of environmental, health, and safetyissues in connection with their own work, and actively address them. We provide environmental education and preliminary education related
to operations with high environmental impact, such as waste management and the handling of chemical substances, at plants and researchfacilities with a large environmental impact. We clearly inform employees of the targets and actual gures of CO2 emissions and waste
generation so as to e ectively motivate their involvement in EHS activities.

19

SHIONOGI Environment Report 2023（https://www.shionogi.com/global/en/sustainability/environment.html）

Risk Management
In this era, called the “age of VUCA,” business uncertainty is increasing amid accelerating social change. From the perspective of sustainability,
the SHIONOGI Group appropriately manages business risks, including creating new business opportunities and taking risk avoidance andreduction measures. We have built and promoted an enterprise risk management (ERM) system, which manages the risks of the entire group,
as an important system for our management strategy and management foundation.
Environmental risks are identi ed and placed on the agenda (setting targets for climate change-related issues, checking progress in achieving
the targets, assessing compliance with laws and regulations, etc.) of the SHIONOGI Group Companywide EHS Committee and the Energy
Conservation Committee, a subsidiary committee. These committees assess the timing of emergence, probability of occurrence, nancial
impact, and other factors of these risks, formulate measures to respond to them in order of priority, and check the implementation status of
the measures. In particular, signi cant risks that could have a major impact on management are reported through the Enterprise Risk
Management Secretariat to the Corporate Executive Management Meeting and the Board of Directors, which deliberate and make decisions on
how to respond to them.
See the section “Risk Management” for more information on risk management.

Enterprise Risk Management (ERM) System

20

SHIONOGI Environment Report 2023（https://www.shionogi.com/global/en/sustainability/environment.html）

Identi cation, assessment results, and responses

Assessment criteria
Assessment criteria are provided in the table below. Assessment is nalized after detailed discussions by the SHIONOGI Group Companywide
EHS Committee.
Level

ImpactFrequency of occurrence

Large

Discontinued operation

Frequent in the area/industry

MediumCapital investment

Past incidents

Small

―

No past incidents

21

SHIONOGI Environment Report 2023（https://www.shionogi.com/global/en/sustainability/environment.html）

Environmental Materiality
In updating its medium-term business plan STS2030 to STS2030 Revision, the SHIONOGI Group analyzed and assessed its risks andopportunities and their time frame based on changes in the internal and external environment, and reviewed the material issues (materiality)that must be addressed. As a result, we have continued to identify “Protect the environment” as one of the SHIONOGI Groupʼs material issues(materiality).
Material issues
In addition, we have listed environmental issues to be addressed through more detailed analysis of changes in the external businessenvironment and dialogue with external stakeholders, such as ESG investment institutions and external experts, and related organizations
within the company. We have identi ed these issues as “Environmental Materiality” by assessing their impact on the sustainability of global
ecosystems and on stakeholders based on the Environmental Reporting Guidelines published by Ministry of the Environment, Japan. In
response to Environmental Materiality, we have formulated speci c medium- to long-term targets for resolving the issues as the SHIONOGIGroup EHS Action Targets, under which we create and implement a single-year EHS Action Plan. The SHIONOGI Group EHS Action Targets are
determined through deliberation by the SHIONOGI Group Companywide EHS Committee, the Corporate Executive Management Meeting, andthe Board of Directors. Meanwhile, the EHS Action Plan is determined under the responsibility of the Senior Executive O cer and Senior Vice
President of the Administration Division, who serves as the Corporate O cer in charge of EHS, after deliberation by the SHIONOGI Group
Companywide EHS Committee.

22

SHIONOGI Environment Report 2023（https://www.shionogi.com/global/en/sustainability/environment.html）

Summary of identi cation of Environmental Materiality

We apply the identi ed Environmental Materiality to the value chain and consider what countermeasures are required for each material issue ineach process. The countermeasures are re ected in the SHIONOGI Group EHS Action Targets.
To o er value to society and meet our stakeholdersʼ expectations, the SHIONOGI Group hopes to further deepen its activities by clarifying
concrete steps toward handling material issues in the future and key performance indicators (KPIs).

23

SHIONOGI Environment Report 2023（https://www.shionogi.com/global/en/sustainability/environment.html）

Environmental Materiality and the value chain
Purchase
AMR

Antimicrobial
releasemanagement

ClimatechangeIntroduction ofenergy-saving
equipment
Introduction ofrenewableenergyResource
conservation
andcirculation

Water andwater risks

R&D

Manufacturing

Distribution andsales

Promotion of
responsible
antimicrobial
useAntimicrobial
releasemanagement
Introduction ofenergy-saving
equipment
Introduction ofrenewableenergyIntroduction ofenergy-saving
equipment
Introduction ofrenewable energyGreenpurchasing

Design ofenvironmentally
responsible
products

3Rs of wastematerials

Water risk
assessment

Water risk
assessment, water
conservation,
wastewater
management

Water risk
assessment,
water
conservation,
wastewater
management

Introduction of
hybrid vehicles
Improvement oftransportatione ciency

Environmental Materiality and the SHIONOGI Group EHS Action Targets(Environment)

See the sections“Action Targets” and “Results” for more information on the targets and activities.
24

Use anddisposal

Change in or
recycling ofcontainers andpackagingmaterials
Reuse andrecycling ofcontainers andpackagingmaterials
Responsible
disposalSHIONOGI Environment Report 2023（https://www.shionogi.com/global/en/sustainability/environment.html）

Action Targets
SHIONOGI Group EHS Action Targets (Environment) (2020–2024/2030/2050)
Based on the SHIONOGI Group EHS Policy and the SHINOGI Group EHS Code of Conduct, we have set the SHIONOGI Group EHS Action Targets(single year and medium- to long-term) regarding “AMR,” “climate change,” “resource conservation and circulation,” and “water,” which havebeen identi ed as Environmental Materiality, to proceed with initiatives. For other items, the SHIONOGI Group and each operating site/Group
company have set single-year targets and have promoted activities to achieve these targets.
Scope:SHIONOGI Group companies in Japan (Global SHIONOGI Group for [GHG (CO2) emissions reduction] and [Water risk mitigation])
Since FY2022, global targets have been set for [Waste and plastics] and [Water consumption reduction].

Item

AMR

Medium- andlong-term
targets(2020–
2024/2030/2050)

FY2022 targets

FY2022 results[AMR control]・Maintain the
management
system at the
Kanegasaki
Plant.

[AMR control]
Maintain the
management
system at the
Kanegasaki Plant
and theTokushima Plant.

[AMR control]Themanagement
system wasmaintained.

・ Complete
initial audits of
100% of relevant
suppliers.
・By 2030,
establish a
responsible
AMR
management
system,including the
supply chain(complete postaudit followup).

Complete initialaudits of 100%of relevant
suppliers.

Initial audits of
86% of relevant
suppliers werecompleted(The audit of a
supplier could
not beconducted
because theschedules of theaudit vendor andthe suppliers did
not match).

25

Achievement

FY2023 targets〇[AMR control]
Maintain the
management
system at the
Kanegasaki Plant
and theTokushima Plant.

Complete initialaudits of 100%of relevant
suppliers.
×SHIONOGI Environment Report 2023（https://www.shionogi.com/global/en/sustainability/environment.html）

Item

Climate change

Medium- andlong-term
targets(2020–
2024/2030/2050)

FY2022 targets

FY2022 results[GHG (CO2)emissions
reduction](FY2019benchmark)*1
・Reduce Scopes
1+2 by 10%.
・Scope 3:
Reduce Category
1 by 10%.
・By 2030,
reduce Scopes
1+2 by 46.2%
and Scope 3(Category 1) by
20%*1.
・By 2050,
achieve zero
emissions.

[GHG (CO2)emissions
reduction](FY2019benchmark)・Reduce Scope
1+2 emissions to
the FY2019 level
or less.

[GHG (CO2)emissions
reduction](FY2019benchmark)・Scopes 1+2
emissions werereduced by 0.3%
from the FY2019
level.

Reduce Scope 3
Category 1
emissions by 5%.
(FY2019benchmark)Scope 3 Category
1 emissions werereduced by
22.4% from the
FY2019 level.

・Improveenergy intensity
by an annual
average of 1%.

Improve energy
intensity by anannual averageof 1%.

Energy intensity
fell by an annual
average of 6.0%
(because energy
consumption
increased due tofactors such as
COVID-19-related
R&D and the
manufacture of
COVID-19
therapeutic
drugs).

・Promote theintroduction ofhighly energye cientequipment andtheelectri cation ofequipment.

Promote theintroduction ofhighly energye cientequipment andtheelectri cation ofequipment.

26

Highly energye cientequipment was
introduced at the
CMC ResearchInnovation
Center, theKanegasaki
Plant, and theTokushima Plant.

Achievement〇〇

FY2023 targets[GHG (CO2)emissions
reduction](FY2019benchmark)
Reduce Scope
1+2 emissions by
15%. (FY2019
benchmark)
Reduce Scope 3
Category 1
emissions by 9%.
(FY2019benchmark)Improve energy
intensity by anannual averageof 1%.

×〇

Promote theintroduction ofhighly energye cientequipment andtheelectri cation ofequipment.

SHIONOGI Environment Report 2023（https://www.shionogi.com/global/en/sustainability/environment.html）

Item

Medium- andlong-term
targets(2020–
2024/2030/2050)

Achievement

FY2022 targets

FY2022 results[Waste andplastics]
・Reduce theamount of waste
generated to the
FY2021 level(5,169 tons) or
less.
<Global>・Reduce theamount of waste
disposal to the
FY2021 level(4,793 tons) or
less.
・Reduce theamount ofhazardous waste
disposal to the
FY2021 level(1,434 tons) or
less.

[Waste andplastics]
・Wastegenerated: 5,766
tons (increased
by 50.8% fromthe FY 2018
level) (due to anincrease inproduction
volume)<Global>・Waste disposal:
5,232 tons(including
hazardous waste)(increased due toan increase inproduction
volume)・Hazardous
waste disposal:
810 tons(overachieved
due to a decline
in the operating
rate ofproduction
equipment due
to changes inmanufacturingmethod at theTokushima Plant)

×・Reuse/recycle
80% of waste
generated.

・Reuse/recycle
at least 80% of
waste generated.

・Reuse/recycleof waste
generated: 89%〇

・Reuse/recycle
30% of waste
plastics.
・By 2030,
reuse/recycle
65% of waste
plastics.

・Reuse/recycle
30% of waste
plastics.

・Reuse/recycleof waste plastics:
25% (because wewere unable torequest recycling
due to therecycling
company’s
circumstances)[Waste andplastics]
・Reduce theamount of waste
generated by
25%.
(FY2018
benchmark)Resources
conservationand circulation

27

FY2023 targets[Waste andplastics]
・Reduce theamount of waste
generated to the
FY2022 level(5,766 tons) or
less.
<Global>・Reduce theamount of waste
disposal(excluding
hazardous waste)
to the FY2022
level (4,422 tons)or less.
・Reduce theamount ofhazardous waste
disposal to the
FY2021 level(1,434 tons) or
less.

・Reuse/recycle
at least 80% of
waste generated.

・Reuse/recycle
30% of waste
plastics.
×SHIONOGI Environment Report 2023（https://www.shionogi.com/global/en/sustainability/environment.html）

Item

Medium- andlong-term
targets(2020–
2024/2030/2050)

FY2022 targets

FY2022 results

・Restrict plastic
use in products.

・Restrict plastic
use in products.

The adoption of
biomass plastic
for PTP sheets
and thinner
sheets was
examined atShionogi
Pharma.

Resources
conservationand circulation

Water[Water risk
mitigation]
・Completethoroughassessment ofwater risks at
researchlaboratories,
plants, and othermajor operatingsites.

[Water risk
mitigation]
・Conduct waterrisk assessment
using WRI
Aqueduct, WWF
Water Risk Filter,and in-houseassessment at
major operatingsites in Japan.

[Water risk
mitigation]
・Water risk
assessment
using WRI
Aqueduct, WWF
Water Risk Filter,and in-houseassessment was
conducted atmajor operatingsites in Japan.

[Waterconsumption
reduction]
・Keep water
withdrawal at orless than 1,340
thousand m3(around the
FY2018 level).

[Waterconsumption
reduction]
・Keep water
withdrawal at
the FY2021 level(1,366 thousandm3) or less.
<Global>・Keep water
withdrawal at
the FY2021 level(1,517 thousandm3) or less.

[Waterconsumption
reduction]
・Water
withdrawal:
1,425 thousandm3 (increased
due to anincrease inproduction
volume)<Global>・Water
withdrawal:
1,550 thousandm3 (increased
due to anincrease inproduction
volume)28

Achievement

FY2023 targets

・Restrict plastic
use in products.
〇〇

×[Water risk
mitigation]
・Conduct waterrisk assessment
using WRI
Aqueduct, andin-house
assessment at
major operatingsites in Japan.
[Waterconsumption
reduction]
・Keep water
withdrawal at
the FY2022 level(1,425 thousandm3) or less.
<Global>・Keep water
withdrawal at
the FY2022 level(1,550 thousandm3) or less.

SHIONOGI Environment Report 2023（https://www.shionogi.com/global/en/sustainability/environment.html）

Item

Chemical
substances

Medium- andlong-term
targets(2020–
2024/2030/2050)

FY2022 targets

FY2022 results[Appropriate
management ofchemical
substances]
There are no
medium-termtargets because
issues identi ed
in FY2020 should
be addressed.

[Appropriate
management ofchemical
substances]
Recheck thehandling ofchemical
substances (riskassessment, legal
compliancestatus), regarding
their storage(including
temporarystorage andstorage before
disposal),transfer, and use.

[Appropriate
management ofchemical
substances]
A re-check was
not conducted atsome operatingsites.
(Operating sites
where a re-check
was not
conducted: UMN
Pharma Akita
Plant, UMN
PharmaYokohama
Research Center)[Responsible
management of
PCB anduorocarbons]
・Reinvestigate
PCB-containing
waste, andcomplete
responsible
disposal/treatment (FY2022).

[Responsible
management of
PCB anduorocarbons]・Execute 100%
disposal/treatme
nt of currently
known PCBcontaining
equipment.

[Responsible
management of
PCB anduorocarbons]
Disposal/treatme
nt of highconcentration
PCB waste was
100% completed.

・Fluorocarbons:
Manageequipment using
uorocarbons
responsibly, andpromote theintroduction of
uorocarbon-freeor low-GWP*2
equipment.

・Fluorocarbons:
Manageequipment using
uorocarbons
responsibly, andpromote theintroduction of
uorocarbon-freeor low-GWP
equipment.

・Although no
uorocarbon-freeor low-GWP
equipment was
introduced thisscal year,
equipment using
uorocarbons
was properly
managed.

Achievement

FY2023 targets△[Appropriate
management ofchemical
substances]
Recheck thehandling ofchemical
substances (riskassessment, legal
compliancestatus), regarding
their storage(including
temporarystorage andstorage before
disposal),transfer, and use
at UMN Pharma.

〇〇―(Targets not set
because theresponse has
been completed)

・Fluorocarbons:
Manageequipment using
uorocarbons
responsibly, andpromote theintroduction of
uorocarbon-freeor low-GWP
equipment.

The underlined targets are long-term targets for FY2030 and FY2050.
*1 Since we obtained SBTi certi cation in June 2021, the FY2024 and FY2030 targets were modi ed to aim for science-based targets.
*2 GWP: Global Warming Potential
29

SHIONOGI Environment Report 2023（https://www.shionogi.com/global/en/sustainability/environment.html）

AMR
Approach to AMR
AMR (antimicrobial resistance) refers to the phenomenon whereby pathogenic microorganisms, such as bacteria, acquire drug resistance toantimicrobials and become immune to them. An increase in AMR has become a major social issue in recent years. The main reason for theincrease in AMR is inappropriate use of antimicrobials, including excessive administration. Meanwhile, it is also attributed to release from
antimicrobial-manufacturing plants as another factor. Therefore, approaches from various aspects are essential for e ective AMR control.
The SHIONOGI Group has provided antimicrobials to society for many years. As a natural responsibility of a company that handles
antimicrobials, we strictly control the release of antimicrobials into the environment during the manufacturing process. Since AMR isconsidered to be a global threat, the SHIONOGI Group believes that it is necessary to manage the release of antimicrobials into theenvironment not only within the group but throughout the supply chain.

Medium- and Long-term Targets and Response
To reduce the environmental impact of antimicrobials during the manufacturing process, the SHIONOGI Group plans to achieve proper
management of the release of antimicrobials into the environment throughout the supply chain by 2030 through audits of and feedback fromits plants and suppliers. To this end, we aim to maintain and improve the antimicrobial discharge management system at the SHIONOGIGroup’s plants and to complete the rst AMR audits of all related suppliers by FY2024.
To control and manage the release of antimicrobials into the environment, we will proceed with AMR audits based on the Antibiotic
Manufacturing Standard*1 (“Standard”) stipulated by the AMR Industry Alliance*2 (“AMRIA”).

*1 AMR Industry Alliance (External website)
We signed the AMR Industry Roadmap with 12 other leading companies and organizations at theWorld Economic Forum in Davos held in September 2016, thereby taking the lead in ghting AMR.
The signatory companies and organizations commit themselves to the strict management of
antimicrobial release both by themselves and throughout their supply chains, through suchmeasures as specifying their release management techniques in the form of a roadmap to beo ered to all antimicrobial manufacturers so that they will also join in this worldwide e ort tocombat AMR. This movement has now developed into a major campaign called the “AMR Industry
Alliance,” involving an increasing number of companies handling antimicrobials.
*2 Antibiotic Manufacturing Standard (External website)

30

SHIONOGI Environment Report 2023（https://www.shionogi.com/global/en/sustainability/environment.html）

AMR Benchmark*3 2021
We have been selected for AMR Benchmark 2021 in recognition of its excellent overall AMR control activities in the SHIONOGI Group. In the
manufacturing category, in particular, we have obtained 93, the highest score.
*3 AMR Benchmark is the world’s rst report in which companies’ AMR control e orts are analyzed and evaluated by the NGO Access to
Medicine Foundation, based in the Netherlands.
See this website for details. (External website)*4 The Kanegasaki Plant and the Tokushima Plant are the only sites that manufacture antimicrobials within the SHIONOGI Group.
31

SHIONOGI Environment Report 2023（https://www.shionogi.com/global/en/sustainability/environment.html）

The SHIONOGI Group controls and manages the release of antimicrobials in compliance with the Standard stipulated by AMRIA, and conducts
audits of all antimicrobial-manufacturing plants of the SHIONOGI Group as well as all of its suppliers in Japan. Since FY2019, we haveconducted audits of our suppliers outside Japan (see tables 1 and 2).
As an antimicrobial release control and management initiative at the Kanegasaki Plant, a SHIONOGI Group agship plant that manufactures
antimicrobials, antimicrobials contained in wastewater are deactivated in each manufacturing building before the wastewater is discharged
outside via in-house treatment facilities. According to the Standard, we analyze the concentration of antimicrobials in actual wastewater fromthe plant to con rm whether the wastewater is harmless when it is discharged into the natural environment. Recently, it has been con rmedthat wastewater from the manufacturing process of all ve items at the Kanegasaki Plant complies with the discharge limits in the receiving
environment.*5 Solid waste materials, generated from antimicrobial manufacturing at the Kanegasaki Plant, are entirely entrusted to an external
service provider (Eco-system Akita Co., Ltd.) for disposal by incineration, with no antimicrobial release into the environment via solid wastematerials. At the Tokushima Plant, we also analyze the concentration of antimicrobials in wastewater from the plant for contracted items tocon rm that the wastewater complies with the discharge limits in the receiving environment.
As for suppliers, we have con rmed that three of the four drug products, whose manufacture is commissioned to four suppliers in Japan (onedrug product per supplier), conform to the discharge limits in the receiving environment. For the remaining drug product for which conformity
has not been con rmed, we are currently taking corrective measures. We also commission the manufacture of three drug products to three
suppliers outside Japan, and we have con rmed that two of them comply with the discharge limits in the receiving environment. For theremaining supplier for which compliance with the discharge limits in the receiving environment has not been con rmed, we continue to
conduct surveillance and take necessary remedial measures. Although there has recently been a delay in the progress of our audit plans as aresult of travel restrictions due to the COVID-19 pandemic, we completed the initial audit of our suppliers that we currently have contracts
with, both in Japan and overseas, by July 2023. We intend to conduct audits of our suppliers with regard to compliance with the discharge
limits in the receiving environment, each year choosing around two to three suppliers within Japan and one to two suppliers outside Japan.
*5 As discharge limits in the receiving environment, the SHIONOGI Group adopts “Predicted No-E ect Concentrations (PNECs)” mentioned in
the document published by AMRIA or the limit value of 0.05 μg/L, which is the recommended value for drugs not on the list.
See this website for details. (External website)

Table 1: Discharge limits in the receiving environment for active pharmaceutical ingredients (APIs)*6 of antimicrobials
handled by the SHIONOGI Group and audited items (those in color were subject to audit until FY2022)*7

Companies F, G, and H: Suppliers outside Japan.
*6 Although contract manufacturing products are not listed, they conform to the discharge limits in the receiving environment.
*7 Due to the transfer of vancomycin hydrochloride operations in April 2020, the relevant suppliers were excluded from the audits.

32

SHIONOGI Environment Report 2023（https://www.shionogi.com/global/en/sustainability/environment.html）

Table 2: Supplier auditing results (by FY2022)
Supplier

Country oflocationManagement
systemWastewater
management

Solid wastematerial
management

Conformity todischarge limitsCompany A

Japan

〇

〇

〇

〇

Company B

Japan

〇

〇

〇

〇

Company C

Japan

〇

〇

〇

〇

Company D

Japan

△

〇

〇

△

Company F

India

〇

〇

△

〇

Company G

India

〇

△

〇

△

Company H

Italy

〇

〇

〇

〇

〇：Conforming to the criteria of the Common Antibiotic Manufacturing Framework△：Conforming to the criteria of the Common Antibiotic Manufacturing Framework, except in a small number of aspects; remedial measures
being implemented
×：Not fully conforming to the criteria of the Common Antibiotic Manufacturing Framework; remedial measures being implemented

33

SHIONOGI Environment Report 2023（https://www.shionogi.com/global/en/sustainability/environment.html）

Climate Change
Approach to Climate Change
In October 2020, the Japanese government declared its goal to achieve carbon neutrality by 2050. With this as a starting point, the transition toa carbon-free society is accelerating in Japan. Companies are required to incorporate environmental factors, such as climate change, into theirbusiness strategies, aiming for decarbonization. This is essential for companies to contribute to the achievement of the SDGs and continue togrow together with society. Based on the TCFD*1 recommendations, the SHIONOGI Group has built a company-wide governance system,
considering climate change countermeasures as part of its management strategy. After identifying and assessing risks and opportunities in themedium- to long-term business environment, we will promote e orts to reduce risks and create business opportunities.
*1 Task Force on Climate-related Financial Disclosures: An organization established by the Financial Stability Board (FSB) in response to arequest from the G20 to discuss how climate-related information should be disclosed and how nancial institutions should respond.

SHIONOGI Group Climate Change Countermeasure Targets
We conducted a detailed assessment of the impact of climate change on the SHIONOGI Group’s business, using the TCFD framework as areference, and considered strategies and speci c countermeasures. Consequently, we have set “GHG (CO2) emissions reduction” as a metric for
reducing risks related to climate change. In response to this, we have also set targets in our medium- to long-term action targets “SHIONOGIGroup EHS*2 Action Targets.”
In addition, to respond to the Japanese government’s declaration of “Carbon Neutrality by 2050” and the worldwide movement toward
reducing CO2 emissions, the SHIONOGI Group has established SBTs*3 as the FY2030 GHG emissions reduction targets, aiming to achieve carbon
neutrality by 2050. These targets were approved by the SBT Initiative in June 2021 (see this page for details).
*2 EHS: Environment, Health and Safety*3 SBTs (Science Based Targets): CO2 emissions reduction targets based on scienti c data

* Targets approved by the SBT initiative
34

SHIONOGI Environment Report 2023（https://www.shionogi.com/global/en/sustainability/environment.html）

Results of Major Initiatives Related to Climate Change
Reducing our Scope 1 and 2 emissions

To achieve our FY2030 targets, we worked to reduce CO2 emissions by gradually introducing electricity derived from renewable energy mainly
to the SHIONOGI Group’s major sites, such as plants and research laboratories. As a result, we achieved our CO2 emissions reduction target for
FY2022. We also completed the introduction of renewable energy-derived electricity to the head o ce building in FY2021 and to the Aburahi
Research Center in FY2022 based on a plan to switch to renewable energy-derived electricity for the SHIONOGI Group’s major sites. In FY2023,
in response to an increase in electricity consumption due to business growth, which led to a tendency for CO2 emissions to exceed our plan,
we not only introduced renewable energy-derived electricity to the Shionogi CMC Research Innovation Center (CRIC), as originally planned, butalso brought forward its introduction to the Shionogi Pharmaceutical Research Center (SPRC). With this, we have completed the introduction ofrenewable energy-derived electricity to Shionogi’s major sites. Going forward, we will promote the introduction of renewable energy-derived
electricity to the plants of Shionogi Pharma, which is responsible for the production-related functions of the SHIONOGI Group. We plan tocomplete its introduction to all major sites of the SHIONOGI Group by 2030.
Plan for introducing electricity derived from renewable energy
Switching scal
year

2021

2022

2023

2024

2025

Site

Head Ofﬁce

Aburahi

CRIC
SPRC

Settsu-Switching scal
year

2026

2027

2028

2029

2030

Site

TokushimaKanegasaki

UMN
PharmaItami

NanjingMoreover, to improve energy e ciency, we have set targets for improving energy intensity by 1% per year and introducing equipment with highenergy consumption e ciency. In addition to promoting the introduction of high energy-e cient equipment, we promote initiatives, such ascontinuously reviewing equipment operation modes, to reduce energy consumption. However, in FY2022, we were unable to achieve our
FY2022 targets due to an increase in energy consumption, because continuing from FY2021, we not only actively worked on COVID-19-related
research and development, but also implemented the manufacture of COVID-19 therapeutic drugs with the aim of promptly supplying themafter approval.

35

SHIONOGI Environment Report 2023（https://www.shionogi.com/global/en/sustainability/environment.html）

36

SHIONOGI Environment Report 2023（https://www.shionogi.com/global/en/sustainability/environment.html）

Vehicles for sales activities

To reduce CO2 and exhaust gas emissions by improving fuel e ciency,
Shionogi has promoted the introduction of hybrid vehicles (HVs) to berented for our medical representatives (MRs), and has completed theirintroduction in areas other than snowy cold regions. As a result ofprogressively introducing HVs in snowy cold regions, we have completed
their introduction in all regions of Japan during FY2022.
Moreover, due to the spread of the COVID-19 pandemic and thepromotion of DX in medical information provision activities, we haveshifted from face-to-face to online approaches. Consequently, fuelconsumption remained lower in FY2022 than in FY2019, before the spreadof COVID-19.

Reducing our Scope 3 emissions
Scope 3 emissions of the SHIONOGI Group account for about 60% of total emissions. It is essential to work with suppliers to reduce CO2
emissions throughout the supply chain in order to achieve its SBTs. Among our Scope 3 emissions, Category 1 (purchased goods and services)emissions account for more than 50%. To reduce CO2 emissions in this category, we have set a medium-term target on a priority basis toconsider and implement countermeasures.

37

SHIONOGI Environment Report 2023（https://www.shionogi.com/global/en/sustainability/environment.html）

The calculation methods are as indicated in the “Basic Guidelines on Accounting for Greenhouse Gas Emissions Throughout the Supply Chain(Ver. 2.5)” of the Ministry of the Environment and the Ministry of Economy, Trade and Industry of Japan.
*Since FY2022, CO2 emissions in Categories 1 and 2 of Scope 3 have been calculated using the emission intensity based on prices including
consumption tax. In line with this, GHG emissions in or before FY2021 have been recalculated using the emission intensity based on prices
including consumption tax.
The SHIONOGI Group has participated in the Fiscal Year 2021 Model Project for
Supporting Achievement of the Decarbonization Targets of the Entire Supply Chain,
which is a project of the Ministry of the Environment aimed at helping companies
achieve their GHG emissions reduction targets for the entire supply chain, and has
formulated measures to reduce CO2 emissions throughout the supply chain. We havebuilt a collaborative system, including Group companies, to promote supplierengagement, and have implemented the supply chain engagement process*6
formulated in this project in order to achieve our SBTs.
In FY2022, we conducted supplier engagement activities for our top 21 suppliers bypurchase amount, including checking the status of their e orts to reduce CO2
emissions and holding brie ng sessions to promote their understanding of the
SHIONOGI Group’s policy on climate change. In the future, we will select important
suppliers for CO2 emissions reduction to ask them to reduce their CO2 emissions, andsupport their e orts on a priority basis.

＊6 See the Guidebook for Formulating a GHG Emissions Reduction Plan to Achieve the SBTs for more information on the
supplier engagement process created under this project. (Japanese version only) (External website)
38

SHIONOGI Environment Report 2023（https://www.shionogi.com/global/en/sustainability/environment.html）

External Activities for Addressing Climate Change

Selected as an A List Company in CDP Climate Change 2022
In the Climate Change Report 2022 published by CDP, an international non-pro t organization that works on environmental information
disclosure, we received the highest rating of A. Representative Director, President and CEO Isao Teshirogi delivered a speech on the SHIONOGIGroup’s initiatives for environmental protection as a representative of the company that had achieved a double A rating in “Water Security2022” and “Climate Change 2022.”
In the speech, he expressed the SHIONOGI Group’s intention to promote business transformation to create new healthcare solutions and deliver
them globally, and at the same time to grow as a company needed by society while realizing a sustainable society through e orts to preserve
the global environment.
Speech video (Message from the manager of an A List Company) (External website)

Support for the messages from the Japan Climate Initiative (JCI)The Japan Climate Initiative (JCI) is a network aimed at realizing a decarbonized society by enhancing information dissemination from andexchange of views between companies, local governments, and NGOs that are actively involved in climate change initiatives in Japan. The
SHIONOGI Group participated in the JCI in April 2021. As a member company, SHIONOGI expressed its support for the messages published by
the JCI to the Japanese government in April 2021, June 2022 and April 2023.
“JCI’s Message：Overcoming Two Crises with Renewable Energy and Carbon Pricing” (External website)
The SHIONOGI Group has set its SBTs as medium- and long-term targets and is working daily to reduce its CO2 emissions. Believing that
expanding access to renewable energy will be an e ective means of achieving the targets, we strongly support the JCI messages.

Our e orts to combat AMR, which could spread further due to climate change
The SHIONOGI Group’s e orts against AMR (antimicrobial resistance) are presented on the website “Climate Change Adaptation Information
Platform (A-PLAT)” operated by the National Institute for Environmental Studies, Japan.
See the section “AMR” for more information on the SHIONOGI Group’s AMR initiatives.
Shionogi & Co., Ltd. | Examples of adaptation business | Adaptation for Private Sector | Climate Change Adaptation Information Platform (APLAT) (nies.go.jp) (External website)

39

SHIONOGI Environment Report 2023（https://www.shionogi.com/global/en/sustainability/environment.html）

Water
Approach to Water
Water is the source of life, which nurtures diverse ecosystems while circulating and interacting with the atmosphere, soil, oceans, and rivers on
the earth, and is also an important resource indispensable for people’s lives and economic activities. Water shortages, water pollution, and therising risk of ooding, which are caused by global population growth, economic development, and climate change, have become social issues,raising concerns about their serious impact on ecosystems and people’s lives.
For the SHIONOGI Group, water is an essential resource for business continuity, and we have identi ed water risks, such as water stress*1 andooding, as one of the environmental material issues. We not only assess the impact of water risks on our business and work to reduce them,
but also promote appropriate management of the impact of our business activities on the environment.
*1 Condition of strained water supply and demand

Targets and results

40

SHIONOGI Environment Report 2023（https://www.shionogi.com/global/en/sustainability/environment.html）

Water Withdrawal
To protect water resources, the SHIONOGI Group strives to control water withdrawal at each operating site by working to raise employee
awareness of water conservation, thoroughly managing the withdrawal of tap water, industrial water, and groundwater, and reviewing
manufacturing equipment operation and cleaning plans. Most of our water resources are obtained through government water supply facilities,
and we do not take water directly from rivers or the sea. We also do not obtain water from areas where the level of water stress is found to behigh in risk assessments.
We release most of our wastewater into sewers or rivers, not into the sea. Regarding the quality of wastewater at each operating site engaged
in manufacturing and research, we thoroughly manage chemical substances in wastewater and constantly monitor wastewater for any
abnormalities at in-house treatment facilities in line with our voluntary criteria, which are stricter than those imposed by related laws andregulations.
The quantity of actual water consumption at the operating sites corresponds to about 10% of the quantity of water taken in, with a large partof the water used for our activities eventually returned to the aquatic environment. We will continue to strive to reduce water withdrawal ateach operating site, with our medium-term target aiming to keep water consumption at or less than 1,340 thousand m3 (the FY2018
consumption level) in FY2024.

Pharmaceuticals in the Environment
Pharmaceuticals released into the environment are drawing an increasing amount of attention worldwide, as attested to by the report*2
published by the Organization for Economic Cooperation and Development (OECD) regarding pharmaceuticals in the environment (PiE). To
responsibly handle pharmaceuticals during release from its plants as well as during manufacturing processes, when starting new productmanufacturing processes, the SHIONOGI Group con rms that drug concentration in wastewater is designed to be at a level that does not have
any impact on the natural environment. Moreover, as the responsibility of a company that handles antimicrobials, we inactivate antimicrobials
in wastewater at each manufacturing building and con rm that their content is at a level that does not a ect the natural environment before
discharging the wastewater outside via in-house treatment facilities. Thus, we are striving to control the emergence of new antimicrobial
resistance (AMR).
See the section “AMR” for more information on the environmental release management of antimicrobials.
*2 OECD Pharmaceutical Residues in Freshwater (External website)

41

SHIONOGI Environment Report 2023（https://www.shionogi.com/global/en/sustainability/environment.html）

Water Risk Assessment
Quality water is essential for the manufacturing of pharmaceutical products. Water depletion or ﬂooding in the catchment areas where we
operate can seriously impact our business continuity. Therefore, to understand water risks, such as water stress and increased probability ofooding, and formulate preventive measures, we have assessed water risks facing each operating site involved in manufacturing and researchin the SHIONOGI Group, using the internationally recognized WRI Aqueduct*3 and WWF Water Risk Filter.*4
In-house deliberations based on the risk assessment results and past experience and knowledge have led us to conclude that the SHIONOGIGroup is exposed to relatively low water risks for the moment compared to other environmental risks. Meanwhile, since the risk level of futureoods has been on the rise, we are considering consulting with experts in the future to prepare for future ood risks by understanding theood risks speci c to the catchment area of each operating site and identifying water issues.
We have also incorporated risk assessment based on the WRI Aqueduct into the selection of our suppliers to clarify and minimize their latentrisks.
*3 Water risk assessment tool developed and published by the World Resources Institute (WRI)
Aqueduct | World Resources Institute (wri.org) (External website)*4 Water risk assessment tool developed and published by the World Wide Fund for Nature (WWF)WWF Water Risk Filter (External website)

WRI Aqueduct assessment results (water stress)

Country(operating site
location)

No.
of
oper
atin
g
sites

Risk level/No. of operating sites
High to
mediu
m

High

Mediu
m

Mediu
m to
low

Future water
stress change

Low

Japan
(Iwate, Shiga, Osaka,
Hyogo, Tokushima,
Akita, and Kanagawa)

9

－

1

－

7

1

Change tomedium tovery high levels
by 2040

China(Jiangsu)

1

－

－

－

－

1

No majorchange until
2040

WRI Aqueduct assessment results (water depletion)
Country(operating site location)

No. ofoperating
sites

Risk level/No. of operating sites
High

High tomediumMediumMediumto low

Low

Japan(Iwate, Shiga, Osaka, Hyogo,
Tokushima, Akita, andKanagawa)

9

－

－

－

6

3

China
(Jiangsu)

1

－

－

－

－

1

42

SHIONOGI Environment Report 2023（https://www.shionogi.com/global/en/sustainability/environment.html）

WWF Water Risk Filter assessment (baseline water scarcity)

Risk level/No. of operating sites

Country (operating site location)

No. ofoperating
sites

High

High to
mediu
m

Mediu
m

Low

Extrem
ely
low

Japan
(Iwate, Shiga, Osaka, Hyogo,
Tokushima, Akita, and Kanagawa)

9

－

－

－

1

8

China
(Jiangsu)

1

－

－

－

－

1

Selected as an A List Company in CDP Water Security 2022
In the Water Security Report 2022 published by CDP, an international non-pro t organization that works on environmental information
disclosure, we received the highest rating of A. Representative Director, President and CEO Isao Teshirogi delivered a speech on the SHIONOGIGroup’s initiatives for environmental protection as a representative of the company that achieved a double A rating in “Water Security 2022”and “Climate Change 2022.”
In the speech, he expressed the SHIONOGI Group’s intention to promote business transformation to create new healthcare solutions and deliver
them globally, and at the same time to grow as a company needed by society while realizing a sustainable society through e orts to preserve
the global environment.
Speech Video (Message from the executives of A List Companies) (External website)

43

SHIONOGI Environment Report 2023（https://www.shionogi.com/global/en/sustainability/environment.html）

Resource Conservation and Circulation
Approach to Resource Conservation and Circulation
The problem of environmental pollution has been growing on a global scale. A report by the World Economic Forum stated that by 2050 there
could be more plastic in the ocean than sh by weight. Under these circumstances, companies are strongly required to address the issue ofplastic waste. The SHIONOGI Group promotes the reduction, reuse, and recycling of waste in corporate activities.
We also work to ensure the responsible disposal of plastics and implement measures to reduce the amount of plastics used in productmanufacturing processes and packaging. In addition to modifying container and packaging materials and reducing the volume of containers
and packaging (“reduce”), we promote a switch to biomass plastics with less environmental impact and the adoption of high-quality recycledplastics (“reuse/recycling”) while considering product quality and stable supply.

Targets and Results

44

SHIONOGI Environment Report 2023（https://www.shionogi.com/global/en/sustainability/environment.html）

Waste Generation, Reuse and Recycling, and Disposal by Landﬁll
As part of its voluntary action plan to realize a reuse- and recycling-oriented society, the Federation of Pharmaceutical Manufacturers
Associations of Japan (FPMAJ) has adopted the goals of reducing the amount of industrial waste disposed of as land ll by about 75% from the
FY2000 level by FY2025, of reusing or recycling at least 60% of waste by FY2025, and of reusing or recycling at least 65% of plastic waste by
FY2030. As an FPMAJ member, the SHIONOGI Group has also set the same or higher level targets for waste reduction, reuse, and recycling. The
SHIONOGI Group obtains its rate of reuse and recycling by taking the amount of waste sold plus the amount reused/recycled and dividing it by
the amount of waste generated. The landﬁll rate is deﬁned as the amount disposed of as landﬁll divided by the amount of waste generated.
In FY2022, we were unable to achieve the scal year target for the amount of waste generated due to an increase in production activities, suchas the manufacture of COVID-19 therapeutic drugs with the aim of promptly supplying them.
Waste materials generated within the SHIONOGI Group mainly include waste oils resulting from the various manufacturing processes, sludge
from wastewater treatment, and plastics used in product containers. We will work to achieve our medium- and long-term targets by continuing
to promote various measures, such as improving the manufacturing processes, selling waste liquids, plastics, and metals, and reducing theamount of waste liquids generated.

45

SHIONOGI Environment Report 2023（https://www.shionogi.com/global/en/sustainability/environment.html）

Reuse and Recycling of Product Containers and Packaging Materials
In compliance with the Containers and Packaging Recycling Act, a certain portion of the containers and packaging materials used for the
products we sell are reused and recycled. We are also striving to reduce our environmental impact by modifying container materials andpackaging forms while making sure to maintain and improve product quality.

Containers and packaging materials used and amount consigned for reuse/recycling (FY2022 results) (tons)
Containers and packaging materials
usedAmount consigned for reuse/recycling

Plastic

503

173

Paper

449

9

Glass (transparent)

36

12Glass (brown)

19

8

Reuse/recycling consignment fee: 10,370 thousand yen

46

SHIONOGI Environment Report 2023（https://www.shionogi.com/global/en/sustainability/environment.html）

Strategies for Controlling Plastic Waste■ 3R (Reduce, Reuse, and Recycle) + Renewable initiative concerning containers
and packaging materials
As a result of the following e orts in FY2022, we reduced the amount of plastic used by 2.1 tons compared to the conventional methods.
Measures

ReduceReuse
RecycleRenewable

Item

Products concerned

Change of packaging materials used for the delivery of
products by mail order (from plastic to paper)

All healthcare goods throughShionogi Healthcare mail orderservice

Change of material for trays (from plastic to paper)

All drugs provided in ampoules,
vials, and tubes

Change of thickness of eye drop containers (made thinner)

All eye drops

Change of thickness of PTP packaging materials (madethinner)

Flomox, etc.

Discontinuation of use of plastic cushioning materials forbottles

Irbetan, etc.

Inscription of plastic container/packaging material
identi cation marks

All products

Adoption of mechanically recycled PET lm

Symproic, etc.

Adoption of biomass bottles (plant-derived polyethylene
bottles)

Cymbalta, Irbetan, Pirespa,
Cinal EX Pro chewable tablets,
etc.

47

SHIONOGI Environment Report 2023（https://www.shionogi.com/global/en/sustainability/environment.html）■ Initiatives by Shionogi Healthcare Co., Ltd.

For its mail order service “Shionogi Healthcare ONLINE,” Shionogi Healthcare Co., Ltd. has changed all of the plastic materials used for productdelivery to paper-based packaging since FY2019. Through this initiative, we have realized packaging that is not only environmentally friendly
but also helps eliminate the need for customers to separate waste.

■ Mechanically recycled PET lm
The SHIONOGI Group uses mechanically recycled PET (polyethylene terephthalate) lm in the
packaging (aluminum bags) of Symproic.
Mechanically recycled PET lm derives from used PET bottles that undergo several steps:
selection, crushing, cleansing, and high-temperature decompression.
The replacement of virgin PET lm in the outermost layer of the aluminum bags withmechanically recycled PET lm results in reduced CO2 emissions and fossil fuel conservation
while maintaining the quality of the packaged products. This contributed to reducing CO2
emissions by 0.36 tons compared to conventional lm in FY2022. We are currently conducting atechnical study to gradually expand the use of mechanically recycled PET lm to other productpackaging materials.

“FUROSHIKI” garbage bag made from 99% recycled materials

The SHIONOGI Group uses “FUROSHIKI,” a garbage bag made from used stretch lm as araw material. Since FUROSHIKI is made using plastic used and discarded in Japan as araw material, the use of FUROSHIKI contributes to the control of domestic waste
generation.
See the website of K.K. Satisfactory for details. (Japanese version only)(External
website)48

SHIONOGI Environment Report 2023（https://www.shionogi.com/global/en/sustainability/environment.html）■ Biomass bottles
The SHIONOGI Group uses biomass bottles for Cinal EX Pro chewable tablets, Cymbalta, Irbetan, Pirespa,
Baktar Mini, and Almeta. Biomass bottles (plant-derived polyethylene bottles) are packaging containers
made of polyethylene derived from materials left over from sugarcane processing. Renewable polyethylene
derived from sugarcane accounts for more than 90% of the raw material of our biomass bottles, which
conform to the standards established by the Japan BioPlastics Association for biomass plastic
identi cation labeling. (The biomass plastic symbol mark is displayed on the product containers.)*1 By
switching from conventional petroleum-derived polyethylene bottles to biomass bottles, we can reduce
CO2 emissions and conserve fossil fuel resources. This contributed to reducing CO2 emissions by 1.7 tons
compared to conventional bottles in FY2022. We are currently conducting a technical study to gradually
expand the use of biomass polyethylene to other product packaging.

*1 Biomass plastic identi cation labeling: Biomass plastic products (biomass plastics) are those that contain organic (such as plant-derived)materials in excess of a speci ed percentage as their plastic component. The Japan BioPlastics Association certi es products that meet its
criteria and permits the use of its symbol mark on them so that consumers can easily identify biomass plastics.

In-house Reuse/Recycling of Resources■ Reuse of organic solvents
We collect organic solvents used during the manufacturing process of active pharmaceutical ingredients (APIs) at the Kanegasaki Plant, such asdichloromethane, ethyl acetate, and methanol, in-house for reuse, thereby e ectively using resources and controlling waste generation.

■ Horizontal recycling of label mounts
In March 2023, Shionogi Pharma Co., Ltd. applied the horizontal recycling*2 scheme for recyclable label mounts*3 to labels for ampoule
injections for the rst time in commercial production, and began collecting used label mounts.
See the section “Topics” for details.
*2 Recycling where used products are processed into raw materials to recreate the same type of products*3 Label mounts (release paper, separator) to protect the adhesive side of the label.

49

SHIONOGI Environment Report 2023（https://www.shionogi.com/global/en/sustainability/environment.html）

Reduction of Paper Resources
The SHIONOGI Group’s administrative o ces, Shionogi Business Partner Co., Ltd., and the labor
union of Shionogi & Co., Ltd. are working to conserve paper resources.
For products, in line with the revision of the Pharmaceuticals and Medical Devices Act*4 (fordigitization of package inserts), we have abolished paper package inserts enclosed with products(the response has been completed for 164 out of 170 products). Furthermore, for Linderon (three
types of products), by changing from individual packaging boxes to shrink packaging,*5 wecontributed to a reduction of 0.47 tons of CO2 emissions compared to conventional products in
FY2022.
*4 Act on Securing Quality, E cacy and Safety of Products Including Pharmaceuticals and Medical
Devices*5 Packaging that uses the property of lm that shrinks when heated to conform to the shape ofthe container

Individual packaging boxes abolishedand changed to shrink packaging

Prevention of Illegal Dumping
To prevent illegal dumping of industrial waste, the SHIONOGI Group takes great care in selecting business operators to whom we consign wastetransportation and treatment/disposal, giving priority to those who are certi ed by the Ministry of the Environment’s Excellent Industrial Waste
Disposal Operator Certi cation System for their quality services. For other business operators, we verify the quality of their operation bychecking their business licenses, treatment/disposal facilities, operational status, document management status, and implementation of
emergency drills, using our contractor evaluation sheet. After selecting business operators, we ensure the appropriate management ofcontractual documents, licenses, and manifests (waste management sheets) and conduct at least one on-site inspection per year for each
operator.

Clean-up Activities
Environmental pollution caused by marine plastic waste has become a major global issue. Marine plastic waste can partly be traced back toplastic waste generated overland and carried into the sea by rain and wind via rivers. Employees at the SHIONOGI Groupʼs respective operatingsites participate in clean-ups along the surrounding roads and other such initiatives organized in the local communities. Thus, we are working
to contribute to the beauti cation of local areas and raise employee awareness of the environment and resource circulation.

Cleanup activities around the plant

50

SHIONOGI Environment Report 2023（https://www.shionogi.com/global/en/sustainability/environment.html）

Chemical Substances
Approach to Chemical Substances
The research, development, and manufacturing of pharmaceutical products involve the use of numerous types of chemical substances. Some ofthem can adversely impact human health, ecosystems, and the global environment. There are various laws and regulations related to chemical
substances, including the Pollutant Release and Transfer Register (PRTR) Act, which require strict management. We recognize that it is a very
important responsibility of a company that handles chemical substances to properly manage chemical substances and control their release into
the atmosphere, sewers, and public waters. In addition to complying with the relevant laws and regulations, the SHIONOGI Group strives tocontrol the release of chemical substances into the environment by setting its voluntary control criteria, which are stricter than those imposedby these laws and regulations.

PRTR
In compliance with the PRTR Act, under which it is mandatory to record, calculate, and publish the status of release of chemical substances
into the environment, the SHIONOGI Group submits relevant data to the authorities regarding the designated chemical substances it handles,
and also manages the amounts of volatile organic compounds (VOCs) it uses, releases, and transfers. Under the PRTR Act, business operators
are required to record and report to the authorities the amounts of designated chemical substances that are released into the atmosphere andrivers, disposed of, and recycled in their operations. The table below lists the headings under which this reporting is made. The amounttransferred to outside operating sites refers to the amount handled as waste.

51

SHIONOGI Environment Report 2023（https://www.shionogi.com/global/en/sustainability/environment.html）

Substances to be registered under the PRTR Act (Unit: kg)

Substance nameAmountused

N,N-Dimethylacetamide

Amount released

Amount transferred

AtmosphereDrainage(public
waters)

Outsideoperating
sites

5,646

0

0

0

5,646

0

N,N-Dimethylformamide

8,673

46

0

0

3,586

0

Acetonitrile

336,795722

0

0335,255

0Chloroform

6,687

134

0

0

6,552

0

Dichloromethane(methylene chloride)

181,430

110,5512

052,8890Tributylamine

4,640

0

0

0

0

0

n-Hexane

6,122

0

0

0

5,798

0

Pyridine

19,57000011,3620

Soil

SewersAlthough the amount of VOCs handled by us increased due to an increase in plant production, the amount released into the atmosphere was
below the FY2021 level due to appropriate management. We will continue our responsible management of the use, release, and transfer ofchemical substances, controlling their release into the atmosphere, sewers, and public waters, to reduce the impact that our operations may
have on the environment.

52

SHIONOGI Environment Report 2023（https://www.shionogi.com/global/en/sustainability/environment.html）

PCB
Polychlorinated biphenyls (PCBs) are mainly oily chemical substances made arti cially. It has been reported that when they accumulate in thebodies of living organisms, they cause various symptoms. PCBs released into the environment are a cause of great concern in terms of globalscale contamination because they are resistant to decomposition in the environment but soluble in fat, resulting in their tendency toaccumulate in the bodies of living organisms through the food chain. In the past, PCBs were used in numerous items, such as condensers,
transformers, and ﬂuorescent light ballasts. It is therefore imperative that all equipment containing PCBs, whether being replaced or still in use,be appropriately managed to contain the impact of these substances.
In the SHIONOGI Group, appropriate management of PCB-containing equipment is assured by personnel speciﬁcally appointed for this task. At
the same time, the treatment and disposal of PCB-containing equipment are proceeding. As of FY2022, we have completed the disposal of all
equipment containing high concentrations of PCBs installed in the buildings and premises we own.

Fluorocarbons
In compliance with the Act on Rational Use and Proper Management of Fluorocarbons, the SHIONOGI Group identi es the relevant
refrigeration, air-conditioning, and other types of applicable equipment that it possesses and operates, carries out simpli ed and periodic
inspections, keeps related records, and calculates the amount of leakage. In FY2022, the SHIONOGI Groupʼs calculated uorocarbons leakage
was 630 tons-CO2. In compliance with the Kigali Amendment to the Montreal Protocol,*1 we are promoting a switch to uorocarbon-free or lowGWP*2 equipment at the time of renewal.
*1 The Montreal Protocol on Substances that Deplete the Ozone Layer, based on the Vienna Convention for the Protection of the Ozone Layer,
restricts substances likely to destroy the ozone layer, namely chloro uorocarbons (CFCs) and hydrochloro uorocarbons (HCFCs). The Kigali
Amendment to the Montreal Protocol includes the restriction of production and consumption of hydro uorocarbons (HFCs), a non-ozonedepleting uorocarbon alternative with a high greenhouse e ect.
*2 GWP: Global Warming Potential

Environmental and Safety Consideration of Chemical Processes
The SHIONOGI Group performs preliminary assessments of the safety of chemical substances and the danger of reactions and incompatibilities
in the development stage of manufacturing and testing methods for pharmaceutical compounds and candidate compounds, and in the design
stage of related equipment. We also examine production processes so as to enhance efﬁciency in terms of waste reduction, energy
conservation, and the like in the manufacturing stage.
See the section “AMR” for more information on environmental release management of antimicrobials.

53

SHIONOGI Environment Report 2023（https://www.shionogi.com/global/en/sustainability/environment.html）

Pollution Prevention
Approach to Pollution Prevention
Waste, exhaust gas, and wastewater containing toxic substances resulting from business activities pollute the environment and have a major
impact on the human body and ecosystems. Pollution can also be caused by the use of products and by the disposal of products that are nolonger needed. In Japan, the discharge of waste and toxic substances increased during its high economic growth period due to the country’s
industrialization and economic development, which led to the contamination of the atmosphere, aquatic areas, soil, and underground water,
resulting in various problems that impaired the health of the people. Environmental pollution, once it occurs, has a serious impact on local
communities and biodiversity, which can only be restored to their original state–if at all–by spending a great deal of time and money. We
recognize that preventing pollution is an important issue for a company to protect the health and living environment of people.
The SHIONOGI Group stipulates in the SHIONOGI Group EHS Policy and the SHIONOGI Group EHS Code of Conduct that we will comply withlaws and regulations related to the environment and occupational health and safety, and strive to maintain and improve EHS standards. We
have established an EHS management system, in which we thoroughly comply with laws and regulations related to air, water, and soil pollution
and assess the status of compliance, thereby working to prevent pollution throughout the group.

Prevention of Air, Water, and Soil Pollution
To prevent air pollution, the SHIONOGI Group strictly observes the regulatory values for NOx, SOx, and particulate matter while reducing SOx
generation through fuel conversion from heavy oil, which contains many impurities, to lique ed natural gas. To prevent contamination insewers and public waters by wastewater, we set voluntary criteria for pollutants, which are stricter than those imposed by related laws andregulations, and carry out round-the-clock monitoring with the use of TOC*1 meters and oil content monitoring devices. In particular, at the
Kanegasaki Plant, the Tokushima Plant, and the Aburahi Research Center, where wastewater is released into rivers, which are public waters,from operating sites, wastewater is treated and puri ed at the facilities on their premises before it is released into nearby rivers.
The Kanegasaki Plant, which handles large quantities of chemical substances, sets voluntary criteria for soil and takes measurements
periodically. It is con rmed that the measurements have constantly been below the applicable environmental criteria.
*1 TOC: Total Organic Carbon

54

SHIONOGI Environment Report 2023（https://www.shionogi.com/global/en/sustainability/environment.html）

Compliance with Related Laws and Regulations

Environment-related laws and regulations cover a wide range of issues, including waste and energy management, the prevention of air andwater pollution, and the management of chemical substances. To ensure thorough compliance, we share information on legal and regulatory
revisions with each operating site, organize educational programs, and compile relevant information and knowledge in manuals. We also
conduct a periodic assessment of the status of legal and regulatory compliance. As with environmental matters, we also ensure legal andregulatory compliance and assessment with regard to health and safety a airs.
As a result of promoting these initiatives, the SHIONOGI Group has never been subject to litigation or penalties for EHS-related violations todate.
We received information from residents that radio interference was occurring due to the construction of a new building on the premises of theShionogi CMC Research Innovation Center. By taking appropriate measures such as conducting radio wave situation surveys and holding
information sessions, we gained the understanding of the local residents.

Number of incidents of excess emissions (exceeding legal restrictions) (cases)
FY

2018

2019

2020

2021

2022

Shionogi & Co.,
Ltd.

0

0

0

0

0

Group
companies

0

0

0

0

0

Number of complaints relating to the environment (cases)
FY

2018

2019

2020

2021

2022

Shionogi & Co.,
Ltd.

1

0

0

2

1

Group
companies

0

0

0

1

0

55

SHIONOGI Environment Report 2023（https://www.shionogi.com/global/en/sustainability/environment.html）

Biodiversity
Approach toBiodiversity
Based on the SHIONOGI Group EHS Policy and the SHIONOGI Group EHS Code of Conduct, the SHIONOGI Group will work together withbusiness partners to promote initiatives aimed at preserving natural capital. We recognize that we bene t from biodiversity in all our value
chain activities, including research, development, manufacturing, and marketing to create pharmaceuticals and other healthcare solutions anddeliver them to society. Appreciating the bene ts from diversity, we work to reduce the negative impacts these activities have on biodiversity.
Speci cally, we will contribute to the conservation of biodiversity by working with our suppliers to reduce the negative impacts of our businessactivities over the medium to long term, while taking into account the four material issues of ”AMR,” “climate change,” “resource conservationand circulation,” and “water,” which have been identi ed as Environmental Materiality for our business.

Participation in Initiatives
The SHIONOGI Group has endorsed the Declaration of Biodiversity by Keidanren and Action Policy (Revised Edition) and has announced its
environmental policy for the future and speci c examples of environmental initiatives through the Keidanren Initiative for Biodiversity
Conservation.
Keidanren Initiative for Biodiversity Conservation (External website)
Furthermore, in September 2023, we joined the 30by30 Alliance for Biodiversity,*1 a platform thatconsists of volunteer companies, local governments, and organizations, supporting its founding
purpose of promoting e orts to achieve the 30by30 target. The SHIONOGI Group will continue tostrengthen its activities to conserve biodiversity, aiming for the international goal of Nature Positive
to halt and reverse biodiversity loss by 2030.
Ministry of the Environment: 30by30 Alliance for Biodiversity (External website)*1 30by30 Alliance for Biodiversity: A coalition of volunteers, including governments, companies, andNPOs, that was established to promote nation-wide e orts to achieve the 30by30 target, aninternational target of protecting or conserving at least 30% of land and sea areas by 2030

Visualization of Connection with Nature
As a social movement regarding biodiversity, the Kunming-Montreal Global Biodiversity Framework*2 was adopted at COP15 in December 2022,
and the Task Force on Nature-related Financial Disclosures (TNFD)*3 framework was published in September 2023. In both frameworks,companies are required to identify and assess their dependence and impact on biodiversity and biodiversity risks and opportunities inbusiness, and take the necessary measures for sustainable consumption (based on the LEAP approach).
To identify its dependence and impact on biodiversity, the SHIONOGI Group has begun e orts to visualize the connection between its businessand nature, with a view to information disclosure based on the TNFD framework. Based on the results of the visualization analysis, we willcontinue to enhance our activities to conserve biodiversity.
*2 Kunming-Montreal Biodiversity Framework: A global goal for biodiversity to be achieved by 2030, following the Aichi Biodiversity Targets, a
set of global targets by 2020 adopted at COP 10*3 TNFD (Task Force on Nature-related Financial Disclosures): A framework for companies and nancial institutions to assess their dependence
on natural capital and impact on ecosystems and provide information to investors and other stakeholders based on their assessment results
56

SHIONOGI Environment Report 2023（https://www.shionogi.com/global/en/sustainability/environment.html）

Consideration for Ecosystem Diversity

Quality water brought about by the diversity of ecosystems is an important resource that is indispensable for pharmaceutical manufacturing.
The SHIONOGI Group works to decrease the impact of soil contamination on the ecosystem by setting criteria for the quality of wastewater,which are stricter than those imposed by related laws and regulations, and to reduce the consumption of limited water resources by recycling
most of the water it uses back into the environment.
See the section “Water” for details.
As a countermeasure against AMR, we inactivate antimicrobials in wastewater discharged from antimicrobial-manufacturing plants and con rmthat their content in the wastewater is at a level that does not a ect the natural environment. We require our suppliers both in Japan andoverseas to thoroughly manage antimicrobials in wastewater to contribute to the resolution of AMR issues and the conservation of theecosystem.
See the section “AMR” for details.

Initiatives at the Aburahi Botanical Gardens
There are many pharmaceuticals of plant origin. Even today, plants are important specimens for pharmaceutical research and are used as raw
materials for pharmaceuticals. The Aburahi Botanical Gardens was established in 1947 within the Aburahi Research Center located in Koka City,
Shiga Prefecture. Initially, plant cultivation was carried out for the purpose of cultivating origin plants for pharmaceuticals and searching drug
discovery seeds from natural plants. However, it has now been refurbished as a facility for promoting environmental initiatives and conducting
community and social contribution activities. At the Gardens, more than 1,000 species of plants, including threatened and rare species, aremanaged and maintained.

Contribution to the conservation of threatened species
At the Aburahi Botanical Gardens, we are involved in conserving threatened species andrare plants. We are also conducting ex-situ conservation of plants that are in danger ofextinction in the area, breeding them at the Gardens and then returning them to theirown habitat.

Dracocephalum argunense (Endangered Class II)

Conservation status of threatened species by category
Categories speci ed by the Ministry of the Environment(Endangered Class IA, Endangered Class IB, Endangered Class II, Near Threatened
Class)

76 species

Categories speci ed by Shiga Prefecture(Endangered species, vulnerable species, rare species, species requiring attention,
important species in terms of distribution, other important species)

70 species

Categories speci ed by Koka City
(Endangered species, vulnerable species, species requiring attention, local
species)

43 species

57

SHIONOGI Environment Report 2023（https://www.shionogi.com/global/en/sustainability/environment.html）

Environmental education for stakeholders
As part of our social contribution activities for the local community through the Aburahi Botanical Gardens, we invite the experts from Kyoto
Pharmaceutical University and the former professor at Kobe Pharmaceutical University to provide educational support to local elementary andhigh school students, who will lead the next generation. We also provide opportunities to learn about the environment by holding garden
tours, targeting those enrolled in a university for seniors and new employees of the SHIONOGI Group.
Results
Educational support (total number of participants)

274 people

Education for employees (total number of participants)

94 people

Number of educational support programs for the next generation / botanical garden tours

21 times

Educational support for local school children

Aburahi Botanical Gardens receives three stars in the Shiga Prefecture Certi cate of Biodiversity
Initiatives–

The Aburahi Botanical Gardens received three stars, thehighest rank, in the 2021 Shiga Prefecture Certi cate of
Biodiversity Initiatives because its community and social
contribution activities, stated above, were evaluated as
e ective initiatives for the conservation of biodiversity andthe sustainable use of natural resources.

58

SHIONOGI Environment Report 2023（https://www.shionogi.com/global/en/sustainability/environment.html）

Reforesting Kombu Project
Shionogi Healthcare Co., Ltd., our Group company, manufactures and markets health foods that use fucoidan, a component extracted from
Gagome kombu (kelp). However, due to a combination of reasons, such as an imbalance of supply and demand in the sea caused by the recent
increase in sea urchins and abalones, which feed on seaweed, and over shing caused by the Gagome kombu boom, natural Gagome kombu,
which mainly inhabits the waters near Hakodate, Hokkaido Prefecture, is facing a crisis of possible extinction in the area.
As a company that handles products using Gagome kombu, we have started the Reforesting Kombu Project to restore natural Gagome kombu
to its former state in which it grew thickly like a forest. The purpose of the project is to switch its use from natural to farmed. To this end, weare collaborating with Hakodate City and local universities and companies to establish a stable supply system for farmed Gagome kombu, aswell as a system to grow farmed Gagome kombu while improving its quality. By expanding our project to other areas, we aim to promote thespread of farmed Gagome kombu, and conserve and restore natural Gagome kombu. To achieve the goal of reducing the use of natural
Gagome kombu to zero by 2024, Shionogi Healthcare has begun switching its product raw materials from natural to farmed Gagome kombu
since 2019. The rate of switching to farmed Gagome kombu reached 50% in FY2022.
This project is conducted under the “Project for Promoting the Launch of Business Based on Local Community-Company Partnership”
subsidized by the Ministry of Economy, Trade and Industry, and we intend not only to create a production system and improve work e ciency
for the kombu farming business but also to contribute to the revitalization of the area by encouraging job creation there.
Moreover, as future challenges, we not only expect the biodiversity conservation e ect of farmed kelp, but also are considering initiatives
aimed at contributing to blue carbon*4 through the kelp. By increasing farmed kelp, which serves as a carbon sink, we will contribute to therealization of a carbon-neutral society and advance multifaceted e orts to preserve the global environment.

養殖中のガゴメ昆布

Click the image to view the project website.
(in Japanese) (External website)*4 Blue carbon
Blue carbon refers to the carbon that is taken from the atmosphere into the ocean bymarine ecosystems such as seaweed beds and shallow reefs. Blue carbon sinks include
seagrass beds, seaweed beds, tidal ats, and mangrove forests, which are called “bluecarbon ecosystems.” Carbon dioxide absorbed through photosynthesis in blue carbon
ecosystems passes through the bodies of living organisms as organic carbon and isstored on the ocean oor for a long period of time.
59

SHIONOGI Environment Report 2023（https://www.shionogi.com/global/en/sustainability/environment.html）

Editorial Policy
Periods
The present Environment Report covers results achieved during the period of the ﬁscal year 2022 (from April 1, 2022 through March 31, 2023) inJapan and the calendar year 2022 (from January 1 through December 31, 2022) outside Japan. The report also covers our activities conducted
immediately before or after these periods.

Organizations Covered
The report covers the environmental activities of Shionogi & Co., Ltd. and the SHIONOGI Group companies in the table below. Sections of thereport that concern a di erent set of organizations are clearly indicated as such in each instance.
Category

Shionogi & Co., Ltd.

Company / Operating site
Head Ofﬁce

Shionogi CMC Research Innovation Center(Hyogo Prefecture)

Tokyo Branch Ofﬁce (Tokyo)

Shionogi Pharmaceutical Research Center(SPRC)

Pharmaceutical Commercial Division(including its sales ofﬁces across Japan)

Aburahi Research Center (Shiga Prefecture)

Shionogi Healthcare Co., Ltd.
Shionogi Pharma Co., Ltd.
Settsu Plant, Kanegasaki Plant (Iwate Prefecture), Tokushima Plant (Tokushima Prefecture), Itami Plant(Hyogo Prefecture)
UMN Pharma Inc.
Yokohama Research Center (Kanagawa Prefecture), Akita Plant (Akita Prefecture)
Group companies

Shionogi Techno Advance Research Co., Ltd.*1
Shionogi Business Partner Co., Ltd.
Aburahi AgroResearch Co., Ltd. (Shiga Prefecture) *1
Shionogi Smile Heart Co., Ltd. *1
Nanjing Chang’ao Medicine Technology Co., Ltd.
Nanjing Factory (China)

Companies and operating sites with no location indicated are all situated in Osaka Prefecture.
*1 Company on the premises of an operating site of Shionogi & Co., Ltd.
60

SHIONOGI Environment Report 2023（https://www.shionogi.com/global/en/sustainability/environment.html）

Numerical Data and Graphs

The numerical data provided in the report are rounded o to the nearest whole number. Accordingly, the totals in the graphs and charts do notnecessarily correspond to the sum of the individual ﬁgures.

Environmental Performance Data Related to Energy and CO2
The data is calculated based on the following calculation methods.

Calculation methods for environmental performance data
[Boundary of calculation]
Scope 1 and 2

SHIONOGI Group (excluding overseas Group companies [administrative o ces]): SHIONOGI Group
companies in Japan and Nanjing Plant (Nanjing Chang’ao Pharmaceutical Co., Ltd.)

Scope 3Category 1

Shionogi & Co., Ltd. and Shionogi Pharma Co., Ltd.

Category 2

SHIONOGI Group companies in Japan

Category 3

SHIONOGI Group companies in Japan

Other categories

SHIONOGI Group companies in Japan (UMN Pharma Inc. is not included in “Category 4” and“Category 12” among “Other categories.”)

Energy consumption

SHIONOGI Group (excluding overseas Group companies [administrative o ces]): SHIONOGI Group
companies in Japan and Nanjing Plant (Nanjing Chang’ao Pharmaceutical Co., Ltd.)[Calculation methods]
Indicator

Scope 1

Calculation methods
CO2 emissions resulting from fuel use
Calculation methods:
Based on the “Greenhouse Gas Emissions Accounting and Reporting Manual (Ver. 4.9)” of the
Ministry of the Environment and the Ministry of Economy, Trade and Industry of Japan
CO2 emission factors:
Based on the “Greenhouse Gas Emissions Accounting and Reporting Manual (Ver. 4.9)” of the
Ministry of the Environment and the Ministry of Economy, Trade and Industry of Japan61

SHIONOGI Environment Report 2023（https://www.shionogi.com/global/en/sustainability/environment.html）

Indicator

Scope 2

Calculation methods
CO2 emissions resulting from purchase of electricity and steam
Calculation methods:
Based on the “Greenhouse Gas Emissions Accounting and Reporting Manual (Ver. 4.9)” of the
Ministry of the Environment and the Ministry of Economy, Trade and Industry of Japan
CO2 emission factors:
Electricity (Japan) (location-based): National average emission factors from “Emission Factors byPower Suppliers (for the calculation of GHG emissions by speci ed emitters) (FY2021 results)”
published by the Ministry of the Environment and the Ministry of Economy, Trade and Industry ofJapan (January 24, 2023, partially revised on May 26)
Electricity (Japan) (market-based): Adjusted emissions factors from “Emission Factors by Power
Suppliers (for the calculation of GHG emissions by speci ed emitters) (FY 2021 results)” publishedby the Ministry of the Environment and the Ministry of Economy, Trade and Industry of Japan(January 24, 2023, partially revised on May 26)
Electricity (China) (both location-based and market-based): FY2022: No. 43 National Grid Average
Emission Factor (2022) in Climate Letter [2023] No.43 of O ce of the Ministry of Ecology andEnvironment of China /before FY2021: Emissions Factors (2019) of the International Energy Agency(IEA)
Steam (both location-based and market-based): Emissions factors from the “Greenhouse Gas
Emissions Accounting and Reporting Manual (Ver. 4.9)” of the Ministry of the Environment and theMinistry of Economy, Trade and Industry of Japan

Scope 3Category 1CO2 emissions from activities up to the manufacturing of raw materials, parts, purchased goods,
and sales-related materials, etc. (hereafter goods purchased)
Calculation methods:
Based on the “Basic Guidelines on Accounting for Greenhouse Gas Emissions Throughout theSupply Chain (Ver. 2.5)” of the Ministry of the Environment and the Ministry of Economy, Trade andIndustry of Japan, the emissions are calculated by multiplying the purchase price by the emission
factor for “Pharmaceuticals” in “[5] Emission Factor Based on the Input-Output Table” in the “The
Database on Emissions Unit Values for Calculation of Greenhouse Gas Emissions, etc., by
Organizations Throughout the Supply Chain (Ver. 3.3)” of the Ministry of the Environment of Japan.
(In addition, in response to the fact that “prices include consumption tax” was added as a point tonote regarding emission intensity (in Japan) in the database (Ver. 3.3), CO2 emissions have been
calculated using the emission intensity based on prices including consumption tax since FY2022. Inline with this, GHG emissions in or before FY2021 have been recalculated using the emission
intensity based on prices including consumption tax.)
The purchase price includes transportation costs associated with the purchase of purchased goods
and does not include amounts related to the purchase of services other than the above.

Category 2CO2 emissions resulting from the construction and manufacturing of own capital goods
Calculation methods:
Based on the “Basic Guidelines on Accounting for Greenhouse Gas Emissions Throughout theSupply Chain (Ver. 2.5)” of the Ministry of the Environment and the Ministry of Economy, Trade andIndustry of Japan, calculated by multiplying the acquisition cost of capital goods by the emissions
factor for “pharmaceuticals” in “[6] Emissions factor per unit price of capital goods” in the “The
Database on Emissions Unit Values for Calculation of Greenhouse Gas Emissions, etc., by
Organizations Throughout the Supply Chain (Ver. 3.3)” of the Ministry of the Environment of Japan(In addition, in response to the fact that “prices include consumption tax” was added as a point tonote regarding emission intensity (in Japan) in the database (Ver. 3.3), CO2 emissions have been
calculated using the emission intensity based on prices including consumption tax since FY2022. Inline with this, GHG emissions in or before FY2021 have been recalculated using the emission
intensity based on prices including consumption tax.)

62

SHIONOGI Environment Report 2023（https://www.shionogi.com/global/en/sustainability/environment.html）

Indicator

Calculation methods

Scope 3Category 3

CO2 emissions resulting from procurement of fuels required for the generation of electricity
purchased
Calculation methods:
Based on the “Basic Guidelines on Accounting for Greenhouse Gas Emissions Throughout theSupply Chain (Ver. 2.5)” of the Ministry of the Environment and the Ministry of Economy, Trade andIndustry of Japan, calculated using “7. Emission Unit Values per Use of Electricity and Heat” in the“The Database on Emissions Unit Values for Calculation of Greenhouse Gas Emissions, etc., by
Organizations Throughout the Supply Chain (Ver. 3.3)” of the Ministry of the Environment of Japan

Other categories

Total of Categories 4, 5, 6, 7 and 12, excluding Categories 8, 9, 10, 11, 13, 14 and 15 that are notincluded in our own corporate activities or are reported under other categories
Calculation methods:
Based on the “Basic Guidelines on Accounting for Greenhouse Gas Emissions Throughout theSupply Chain (Ver.2.5)” of the Ministry of the Environment and the Ministry of Economy, Trade andIndustry of Japan

Energy consumption

Total energy consumption

Total calorie-converted values for purchased energy (gasoline, other fuel oils, LPG, LNG, town gas,
electricity, steam)Calculation method:
Fuel is expressed as the sum of calories calculated using calorie conversion factors under the“Ordinance for Enforcement of the Act on Rationalizing etc. Energy Use” converted into MWh units
with a rate of 3.6GJ per MWh. Note that calorie conversion factors disclosed by providers were used
for town gas. Electricity is expressed as the sum of purchase volumes (MWh) without conversion toprimary energy

Gasoline

Amount of gasoline purchased, including fuel for sales force vehicles

Other fuel oils

Amount of kerosene, light oil, and heavy oil A purchased

Liqueﬁed petroleum gas(LPG)

Amount of LPG purchased from gas suppliers

Liqueﬁed natural gas(LNG)

Amount of LNG purchased from gas suppliers

Town gasAmount of town gas purchased from gas suppliersElectricity

Amount of electricity purchased from power suppliers

SteamAmount of steam purchased from steam suppliers

Reporting Guidelines
The Environmental Reporting Guidelines 2018 of the Ministry of the Environment of Japan are used as a reference.

63

SHIONOGI Environment Report 2023（https://www.shionogi.com/global/en/sustainability/environment.html）

Overall Reporting View
A copy of this report is made available on SHIONOGI’s ofﬁcial website, while excerpts from the report are included in the SHIONOGI Integrated
Report.
The environmental data of FY2022 marked in red on page 116 of “SHIONOGI Integrated Report 2023,” published separately from the present
report, was subjected to third-party assurance by KPMG AZSA Sustainability Co., Ltd.

Trends of Major Performance Assessment Indicators64

1-8, Doshomachi 3-chome, Chuo-ku, Osaka 541-0045, Japan
Tel : +81-6-6202-2161