Our Initiatives for SDGｓ
OUR PRACTICES TO ACHIEVE THE SDGs

FY 2020 Annual Activity Report【Introduction】
Our company announced our support for "UN Global Compact" and joined the activities in March 2020. To
practice the principles of UN Global Compact, we started companywide activities centering on SDGs. In FY
2020 we set 6 goals as our priority SDG-related goals. Each division set its own practical goals and promoted
initiatives to achieve them.
This report was generated based on each division's activity report in FY2020. The status of achievement isexpressed by % of achievement (numerical rating), which could be of help to revitalize the activities further. In
FY2021 the focus is on practicing the enhanced prevention and control measures against COVID-19 (novel
coronavirus). Controlling the occurrence of workplace clusters and appropriate infection control activities havesupported the stable production of pharmaceutical products. While continuing the infection prevention activities,
we will promote various SDGs-related corporate initiatives linked with global poverty, health, education, climatechange, and environmental degradation. Together with an effort to improve work environment we will strive torealize an attractive workplace and execute corporate activities in a stable manner.

FUJIMOTO CHEMICALS Co., LTD.
ESG Promotion Department
2021-05-10

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2021-05-10
ESG Promotion Department

Goal 3：Good health and Well-being
Business goal：CSR activities via core business・Through our contract manufacturing business of active pharmaceutical ingredients, we manufacture high-quality pharmaceuticals under cGMP control and contributeto the health of people around the world through stable supply.
【Division Goals】
Technology Division
Research & Development
Division
Administration Division
Sales Division：Secured stable supply of existing products, enhanced supplier quality auditing：CSR through development of pharmaceuticals：General employer action plan, utilization of stress check system. Health & Productivity Management Certificate.
：Increased customer satisfaction【FY20 Activity Details】
Under Covid-19 pandemic we compiled Operations Manual on prevention and mitigation actions for protecting employees and continued supply of pharmaceuticals. Each division conducted business continuity management
including the introduction of web conferencing to control the occurrence of workplace clusters. Stable procurement of raw materials from China and other foreign countries, evaluation of raw materials from new suppliers andtrial operations were carried out as planned. Both plants executed their production plans and have continued operations without major issues. Continued efforts will be made for stable operations and delivery as well as quality
assurance management towards next fiscal year. For quality assurance of pharmaceuticals, planned raw material supplier audits were conducted ahead of schedule. As for the contract manufacturing of investigational drugs, we
met the customers expectations including OTIF and quality, and executed the plan. In terms of sales activities, we tried to make up for insufficient communication due to restrained F2F meetings by information sharing via web
conferences and questionnaires. Though we achieved enhanced employee welfare benefits program based on General employer action plan, we missed acquiring "Health and Productivity Management". We will continue ourefforts for further improvement towards next fiscal year.
※ Stable supply of pharmaceuticals

Technology Division

Senboku Plant

Kinraku Plant
Research & Development
Division

Process Development
Labs

% of
achievement

Action items

Status of achievement

Summary

Product A: Scale-down of process、Completion of PV
associated with a change in raw material supplier
Product B:Completion of PV associated with a change inraw material
Product C: Qualification of production equipments,
Execution of commercial production as planned.
Consideration of change in supplier of hard-to-procure
raw materials(2 raw materials for Product D)
Achievement of "zero complaint"
Consideration/ Execution of contract manufacturing ofinvestigational drug

PV completed

Quality assurance-related activities
100%(validation, addition of new suppliers,
complaint reduction), key to stable supply ofpharmaceuticals, were conducted in a planned 100%manner. As for contract manufacturing of100%
investigational drug, we executed the
manufacturing as per request from thecustomer and met the production schedule. 100%
100%

Action items

Status of achievement

PV completed
Qualification and commercial production of 2
lots completed
Use test with samples of two materials andconsideration completed
No quality issue identified
Executed as planned

100%※Raw material supplier audit
Quality Assurance Department

Senboku Plant・Kinraku Planned supplier audit (35 cases planned at the beginning Total 54 cases conductedPlant(Purchasing)of the year：11 additional cases in 2H）(37 cases in 1H、17 cases in 2H)

Summary% ofachievement

Quality assurance of raw materials and audits
100%
were executed as planned.

※ Employee welfare
Administration Division% ofachievement
100%

Action items

Status of achievement

Summary

General employer action plan (4th) start①Planned paid-holiday implemented②Revision of conditions for child-rearing leaveand nursing care leave(October)（Availability of leave by the hour）
visualization of the departments with highworkload stress

Based on General employer action plan, we
promoted the initiatives for increased
acquisition rate of paid holidays with tangible 100%
results. Initiative for promoting mental
healthcare linked with stress check is
100%
ongoing.

Stress check implementation (September)2 / 12

※ Covid-19 measures% ofachievement

Action items

Status of achievement

Summary

Administration DivisionObtaining Health & Productivity Management Certificate

Failed to obtain

We promoted Health & Productivity
Management initiatives and applied for thecertification. Though we failed, we will―continue our efforts to obtain the certificate.

Administration Division
Technology Division

Covid-19 preventive measures

Implementation of Covid-19 measures;
staggered working, Web conference, etc.

Our Covid-19 preventive measures resulted
in stable operations of pharmaceuticals. As apart of mitigation measures, we formulated
the flow diagram concerning the employee
availability of attendance, with the effect on
prevention of company-acquired infection.
For all employees to act responsibly in thesociety we supplied masks and mobile alcohol,
and introduced staggered working as well as
teleworking.

Action items

Status of achievement

Summary

Carrying out customer questionnaire survey

Questionnaire about analysis-related request(5 We collected pharmaceutical business related
replies out of 23 customers)
information including market survey
3 questionnaire surveys conducted (Nucleic
information and explored the future100%
acids, Micronization, Customer satisfaction, CSR directions; the promising next generation
activities）
pharmaceutical products and contract
manufacturing opportunities.

※ Customer satisfaction
Sales Division

3 / 12% ofachievement

Goal 7：Affordable and Clean energy

2021-05-10
ESG Promotion Department

Business Goal：Promoting energy conservation
・Reduce energy consumption based on energy base unit.
・Promote the introduction of low-GHG (Greenhouse gas) equipments and devices.
【Division Goals】
Technology Division
Research & Development
Division
Administration Division
Sales Division：Environmental management practice through energy-conservation activities：Design and practice of safety-conscious and environmentally-friendly knowhow：Streamlining indirect operation, Restructuring IT infrastructure：Improved sales activities, promotion of public transportation usage【FY20 Activity Details】
Energy-saving equipments were introduced as planned. Acquisition of thermal stability data of compounds in the finished products and the intermediates contributed to safe operation and efficient energy
consumption during operation. Through digitalization of workflow we improved work efficiency during Covid-19 pandemic. Labor-saving was promoted by restriction of the movements between the businesssites. On the part of sales activities we utilized web conferencing, and reduced paper consumption for sales order management by breaking away from fax machine use resulting in labor-saving. As a result,each division's measures for energy-saving, labor-saving and efficiency improvement were executed almost as planned throughout the year.
※Energy conservation activities
Technology Division

Senboku Plant
Kinraku Plant

Action items
Introduction of energy-saving
equipments(4 units planned)
Introduction of environmentally friendly
equipments(1 unit planned)
Reduction of electrical usage（0.2%
reduction)

Status of achievement
4 units introduced

Action items
Acquisition of thermal stability data

Status of achievement
35 items

2 units introduced
0.2%

Summary
For introducing production equipments, weselected energy-saving or environmentallyfriendly models and exceeded the planned
execution. As for power consumption, we
achieved our target value.

% of achievement

Summary
Acquisition of thermal stability data of thefinished products and the intermediates led tosafe operation and efficient energy
consumption during operation, contributing tostable production operation.

% of achievement

100%
100%

※Safety evaluation
Research & Development
Division

Basic Technology
Development Labs－

※Digitalization of workflow
Administration Division

Sales Division

Action items
Extended scope of electronic approvalby XPOINT（# of electronic approval; 1000）

Status of achievement
Annual target for electronic approval% of achievement
Summary
Though some actions' % of achievement were100%
below the target set at the beginning of theyear, the measures focusing on the（3750 cases electronically approved）
By utilization of XPOINT database query
digitalization made a significant contribution
30%
3 queries
reduction of work processes（10 queries)(ongoing)
small-lot, paid holiday, operating expenses during Covid-19 pandemic. Introduction of
Promotion of tele-working, utilization of Web conferences with customers and/or equipments compatible with tele-working, teleworking, and web-based sales activities
Teams
colleagues (3-5 conferences/week)100%
including web-based conferences enabled us toreduce the necessity of F2F meeting. Thus we
Simplification of sales orderElectronic seal to PDF
management
documents(Executed whenever possible) could meet the infection prevention needs not
75%
only within the company but also from the(electronic company seal、Fax-freecustomers. Furthermore, our main goal of theordering)e-mail distribution of above-mentioned utilization of electronic records and electronic
signatures promoted the simplified businessdocuments
75%
processes and the reduction in paper usage,
allowing for smooth transition to tele-working.

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Goal 8：Decent work and Economic growth2021-05-10
ESG Promotion
Department

Business Goal：Respect for human rights and compliance with laws and regulations through business activities
・Achieve revitalization of the organization by promoting work style reforms.
・Use in-company human resources efficiently and systematically recruit employees, looking ahead to the future.
・Strengthen the CSR procurement throughout the supply chain.
【Division Goals】
Technology Division
Research & Development
Division
Administration Division
Sales Division： A far-sighted systematic recruitment program and education/training.
： Participation by junior staff members to a debriefing meeting. Holding inhouse technical review meetings and workshops.
： Achieving the targeted usage rate of paid holidays, overtime work management, revision of working regulations. Reduction of employee turnover. Training system for employees.
： Clear and thorough communication by report, contact, and consultation. Upskilling of employees【FY20 Activity Details】
Aiming at improved work environment, we promoted revitalization initiatives for more usage of paid holidays, reduction in overtime work and making a better work place. For systematic management of
improvement, we completed the planned revision of working regulations. For promotion of tele-working from home by clerical staff we provided notebook computers to the employees working at
headquarters and introduced tele-working system. For employee training we focused on overall upskilling of employees through safety education, attendance to seminars and sharing key takeaways withthe colleagues. Considering management of working hours and production personnel optimization, we positively carried out recruitment activities toward the next fiscal year (until April, 2021) and secured
adequate human resources. We will continue our efforts to secure appropriate manpower for better work environment.
※Workstyle reform
Technology Division

Kinraku Plant

Administration Division

Action items
No compromise for improved laborproductivity
Yield improvement：1%
Yield rate improment：0.5%
All employees taking 5-day paid holidays
Revision of working regulations
Overtime work management(Monthly OT data check, Feedback)Reduction in employee turnover (Interview
with junior staff)
Department meeting and centralized data
management(Organizing sales control format)
Preparation for tele-working (Utilization ofnotebook PC)

Sales Division

Status of achievement
Yield improvement： -0.6%
Yield rate improvement： -2.8%
5-day paid holidays taken by intended
employees
21 regulations revised(completed)
No violation of 36 agreements
Interviews arranged in July, October,
March
Unification of sales control format
Provision of notebook PC to all staff
members and implementation of teleworking% of achievement
Summary
We failed to achieve the target for improved
labor productivity. Towards the next fiscal year
we will identify the issues and solutions forfurther improvement.
Initiatives for improved work environment (100%
taking paid holidays, revision of working
100%
regulations, overtime management, interview
100%with employees) were almost completed. As
for simplified workflow for the clerical staff,
there was an overlap with tele-working-related
75%
tasks during Covid-19 pandemic resulting in
the limited outcomes. However, by focusing on
50%
the shift to tele-working and to unified cloudbased sales control, we could diversify thework styles.
50%※Execution of employee training
Technology Division
Research & Development
Division
Administration Division
Sales Division

Senboku Plant

Action items
Systematic implementation of safety
education（11 sessions）
Laboratory review meeting
Participation to seminars
New style training for employee
Attendance to exhibitions, scientificmeetings, seminars

Status of achievement
11 sessions implemented

Summary
For inhouse training/education and workshop
we implemented the plans at the offices bydividing participants into small groups. For
4 rounds
inter-office events, we practiced infection
16 seminars
Implemented E-learning (Mental health) prevention measures by organizing web-based
GMP Management Seminar（attended by events. Despite no opportunities for F2F
external seminars, exhibitions and scientificregulatory affairs staff）and Flowmeetings, we actively attended web-based
Synthesis Seminar. Despite
cancellation of exhibitions and seminars events.
due to Covid-19 pandemic, attendance
to online seminars upon necessities.
5 / 12% of achievement

100%
100%

50%

※Recruitment activity
Technology Division
Administration Division

Senboku Plant% of achievement
Action items
Status of achievement
Summary
Site staff recruitment for the next term（10 Recruitment of 10 for production
In FY2020 a change in the original recruitment
for production department、3 for quality
department, 8 for quality control
plan mainly due to retirement required us tocontrol department）
department, 4 for R&D department 2 for make extra efforts to secure the required
quality assurance department, 1 for
number of personnel. By increasing mid-carrier 100%Company-wide staff recruitment for the
recruiting quota and the number of hiring
next term (10 for production department, 4 sales department.
for quality control department, 5 for R&D Total 25 people were recruited.(13 new interview, we could secured manpower
graduates，12 mid-carrier workers)
accordingly.
department)

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2021-05-10
ESG Promotion Department

Goal 9：Industry, Innovation and Infrastructure
Business Goal：Commercialization of nucleic acid pharmaceutical business
Solid phase synthesis has been established as a manufacturing method for nucleic acid drugs which are expected to be applied to rare diseases. We have newly
developed a carrier (Fujimat🄬) for liquid-phase synthesis instead which enables inexpensive mass production of nucleic acid drugs. The technology is expected toaccelerate the development of new nucleic acid drugs. After its launch, we hope to establish an integrated supply system for pharmaceuticals serving the world
under our GMP management.
【Division Goals】
Technology Division
Research & Development
Division
Administration Division
Sales Division：Sophistication of containment technology, entry into commissioned research based on FTE, and entry into nucleic acid drug business.
：Exploration and establishment of Block synthesis method, discovery of new technology (e.g. Flow synthesis)：Reinforced IT security (Enhanced prevention of technical information leakage)：Selection of partners for collaboration, improvement in advertising, collection of technical information【FY20 Activity Details】
We acquired a patent on a carrier (Fujimat🄬) for liquid-phase synthesis in October, 2020 and started the commercial production and sales. Sales Division, in cooperation with Research and Development Division, started
sales activities including presentation on 「Fujimat🄬」 to domestic pharmaceutical companies, and explored an area of R&D opportunities with our existing partners. As for promotional activities to overseas pharmacompanies, we will continue our research work. For R&D on continuous flow synthesis, we organized the inhouse project team and started the activities aiming at acquiring technology in the next fiscal year and onward.
Furthermore, for advancement in containment technology for manufacturing of pharmaceuticals we will proceed with the creation of SOP on evaluation of containment performance. As a part of initiatives to increase IT
sufficiency level, we will continue our improvement efforts for gateway security measures including intrusion detection system and prevention of information leakage.
※Development of nucleic acid technology
Research & Development
Division

Basic Technology
Development Labs

Sales Division

Action items
Development of liquid-phase synthesis
technology for nucleic acid drugs
Increased awareness of Fujimat
Creation and use of presentation materials

Status of achievement
Summary
Acquisition of a patent on a carrier for liquid-phase
Technological development andsynthesis
commercial activities for a new
Actual commercial production/sales of a carrier for liquid- nucleic acid drug business will be
continued. Business expansion
phase synthesis
initiatives will be implemented withPresentation to domestic pharmaceutical companies.
Release of presentational materials to overseas through a a broad perspective beyond Japan.
major trading company
Continued review for technical development

Discovery of themes to embody nucleic acidbusiness
Research contract with more than one company
Information gathering for partner selection
Continued negotiations with more than one company.
Information exchange with more than one
Negotiation with a new contact.
company
Overseas deployment of nucleic acid businessContinued research, Negotiation with distributors.
Research on potential overseas users throughdistributors% of achievement

100%
50%
50%
75%
25%
25%

※Development of flow synthesis technology
Research & Development
Division

Basic Technology
Development Labs

Action items
Development of continuous manufacturing
technologies

Status of achievement
Organized in-house project team started R&D activities

Action items
Creation of SOP on periodic evaluation ofcontainment

Status of achievement
SOPs created

Summary
We will continue to explore ideas
for commercialization in the next
fiscal year.

% of achievement

Summary
We will identify issues andimprovement measures forsophistication of containment
technology.

% of achievement

30%※Containment performance
Technology Division

Senboku Plant

7 / 12100%※Increase in IT security sufficiency level
Administration Division

Action items
Improved sufficiency level of intrusion detection
system（5 measures）
Improved sufficiency level of security measures
for inside of network and egress (5 measures)
Improved sufficiency level of prevention
measures against inhouse data breach (5measures)

Status of achievement% of achievement
Summary
Improved sufficiency level of intrusion detection system（1 We completed the measures ofmeasure: Security alert against fraudulent phishing ebuilding-out security and increase50%mail). Training on wealth management system andin line to ensure secure remotestandard e-mail.
access along with theimplementation of working from
Preventive measures against e-mail transmission error
home. For further enhancement40%
and sophistication of IT security weInternet gateway security measures
Improved sufficiency level of prevention measures against will continue our efforts toaccomplish the remaining tasks.
inhouse data breach (2 measures: Blocking of Informal
chat and SNS app. )40%
Proposal on investment in security measures including
outsourcing and execution

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Goal 12：Responsible consumption and Production2021-05-10
ESG Promotion Department

Business Goal：Risk management, Reduction in raw materials usage, Enhanced recycling, Development of environmentally friendly manufacturing methods
・Reduce energy consumption by promoting the stable procurement of raw materials and conducting the planned production.
・Reduce usage of harmful substances and strengthen the management of harmful substances in products.
・Promote recycling of organic solvents.
・Promote reduction of processes and raw materials by improvement of manufacturing methods.
【Division Goals】
Technology Division
Research & Development
Division
Administration Division
Sales Division：Achievement of zero accident：Science-based approach for productivity improvement (improved work conditions). Proposal on plural raw
material sourcing and plural production lines.
：Enhanced compliance. Fund management practice.
：Promotion of proposal-based activities（Linkage with Plants, R&D）

【FY20 Activity Details】
Concerning safe operation at manufacturing sites, minor accidents occurred at both plants. To achieve zero accident our efforts in planned operation will continue with great care in the next fiscal year. We
will implement environmental measures focusing on recycling of organic solvent and industrial waste for further reduction. Centering on contract manufacturing of investigational drugs we continued our study
on productivity improvement and implemented optimization of manufacturing know-how, proper use of raw materials, reduction in manufacturing cost, and process improvement for safer operation. For better
employee work environment we carried out optimization initiatives including revision of working regulations and overtime work management. We also implemented annual revision of BCP to review companywide business continuity strategies for emergency response and early restoration of business operations. Sales Division actively engaged in promotional activities to users appealing our specialty technologies,
nucleic acid technology and Fujimat🄬 for expansion of our contract manufacturing business.
※Increased occupational health and safety
Technology Division

Senboku Plant

Action items
Achievement of zero accident

Status of achievement
2 minor accidents

Kinraku Plant

Achievement of zero accident

1 accident

Action items
Achievement of resource saving andenergy saving through recycling ofsolvents
Recycling of waste (1 measure)

Status of achievement
Completed

Action items
Inspection tour to industrial waste
disposers（2 visits）

Status of achievement
1 visit

Summary
Failed to achieve zero accident.
We will strive for safe and stable
operations towards next fiscal
year.

% of achievement

Summary
Recycling of solvents and wasteachieved.

% of achievement0%0%※Environmentally friendly activities
Technology Division

Senboku Plant
Kinraku Plant

1 measure

100%
100%

※Reinforcement of supply chain management
Technology Division

Senboku Plant

Summary
Postponed on-site visit during
Covid-19 pandemic.

% of achievement# of production executed

Remarks

50%※Productivity improvement# of cases considered for productivity
improvement
Total number of cases
121
Upscaling
Raw material use test
8
ExamplesResearch & Development
Division

Process
Development Labs

Reduction in raw materials usage
Change in manufacturing process
Improvement in manufacturing process

9 / 12

9
1
4

0

1

0

1

3

2

Production volume improved
5 raw material suppliers
addedCatalyst reduced
Production volume per lot
improved
Impurities reduced/ Quality
improved

※Reinforcement of business infrastructure
Administration Division

Action items
Revision of working regulations(21 items)
Compliance with 36 contracts
Revision of BCP (annual)

Status of achievement
21 regulations revisedMonthly check of overtime work at each
office and sending feedback. No breachof contract.
Periodic revision done：Description
relating to pandemic added.

Summary
For better employee work
environment we carried out
optimization initiatives including
revision of working regulations,overtime work management andrevision of BCP.

% of achievement
100%
100%
100%

※Increasing sales performance
Sales Division

Action items
PR on technologies: Use of equipments
compatible with high potency compounds,
Presentation on Fujimat.

Status of achievement
Summary% of achievement
Available technologies were introduced as Through appealing ourneeded during a meeting. Schedule
technological capabilities we tried
management was not implemented.
to increase our contract
50%
manufacturing business
opportunities.

10 / 12Goal 14：Life below water

2021-05-10
ESG Promotion Department

Business Goal：Industrial wastewater management
・Complete management of the facilities of activated sludge process. Achieve the regulated value of treated wastewater for release to the Osaka Bay.
・Completer wastewater management for sewage.
・Complete control of the processing method of industrial waste generated from the facilities for high potency active pharmaceutical ingredient.
【Division Goals】
Technology Division
Research & Development
Division
Administration Division
Sales Division：Management of processing method of used packaging materials from the facilities for highpotency API. Management of the facilities of activated sludge process.
：Management of processing method of used packaging materials from the facilities for highpotency API at Kinraku Plant. Management of wastewater in underground pit.
：Compliance enhancement：Check of compliance with environmental regulations. Approach to new technologies.

【FY20 Activity Details】
We carried out thorough water quality management and processed wastewater in the on-site pit complying with the regulation. Packaging materials used for active substances werestrictly processed and incinerated by professionals assuring waste management free from exposure and leakage. We will continue our efforts to minimize leakage of chemicals into theenvironment to protect work environment. As a part of employee education, we planned for annual rank-based training, but cancelled F2F training session. For acquisition of newtechnology we will collaborate with other companies to set the company direction towards developing environmentally friendly manufacturing method and make a transition to action
phase in the next fiscal year and onward.
※ Enhancement of wastewater management
Action items
Technology Division

Senboku Plant
Kinraku Plant% of achievement
Status of achievement
Summary
Compliance with regulation
On-site wastewater was properly
100%
value
managed to comply withregulation values.
Drainage volume：28,812m3/year
Compliance with regulation
Daily monitoring and weekly water quality value
testing
Periodic water sampling by city
100%
government: annual
requirement cleared.

※ Enhancement of waste management of high potency substances
Action items
Status of achievement
Technology Division
Senboku Plant
Thorough management of used packaging No exposurematerials from the facilities for highpotency API.
Incineration by professionals
Research & Development
Process
Proper disposal of 26 pieces
Division
Development Labs Implementation of preventive measuresagainst the leakage of high potency
substances

11 / 12

Summary
As preventive measures against
the leakage of high potency
substances, we adhered to SOP
for handling of packaging
materials and disposal recordkeeping.

% of achievement

100%

100%

※ Implementation of employee education
Administration Division

Action items
Rank-based training

Status of achievement
Not implemented

Summary
Scheduled in December but
cancelled due to Covid-19
preventive measures.

% of achievement

Summary
Inhouse project-based approach
was indicated but the theme
requires follow-up discussion in
the next fiscal year.

% of achievement0%※ Approach to stakeholders
Sales Division

Action items
Information gathering for new technology
acquisition
New technology acquisition to establish
continuous manufacturing

12 / 12

Status of achievement
Challenges for embodimentwere picked up.

50%