Foundation for Value Creation

Environment
Basic Principles 
3. We will strive to continuously reduce the environmental
impact from research, development, production, sales andother business activities.
4. We will conduct environmentally friendly facility planningand technology and product development.
5. We will strive to improve environmental communication asa corporate citizen.
6. We will strive to educate employees and raise theirawareness about the environment.

The Group considers initiatives to deal with environmental
problems to be its natural mission in line with its corporate
philosophy, as a corporate entity that contributes to society
and earns its trust. Our environmental policies are based onprotecting the environment and continuously reducing theenvironmental impact of all our business activities.
1. We will establish an environmental management structure.
2. We will comply with environmental laws and regulations
and other requirements.

Environmental Management Structure To effectively practice environmental management,
ASKA Pharmaceutical also regularly holds theCompany-wide Environmental Management
Meeting. Discussion at FY2023 meeting covered
the FY2022 results under the medium-term
environmental plan and the goals for FY2023. We
believe that information sharing and exchange ofopinions among the attendees help to promote
environmental measures throughout the Company.

Disclosures Based on TCFD Recommendations
The Group considers the issue of climate change to be a
management issue that affects its business, and iscommitted to climate change measures. From thisperspective, we have been disclosing climate changerelated information since June 2022 in line with the Task
Force on Climate-related Financial Disclosures (TCFD)
recommendations established by the Financial Stability

Transition Risks•C ompany-wide Environmental Management Structure

Board Member inCharge ofSustainability

Management Council

ESG Committee
ESG
Promotion Meeting

Sustainability Promotion
Promotion Managers
Section, CorporateCommittee
Planning Department

Physical Risks

Environmental Management Supervisor(Administrative Division Director)

Corporate Planning
Department (CSR)

General Affairs
Department (Secretariat)

Company-wide Environmental
Management Meeting

Risk of unexpected pandemics due to climate change, as well as drug price reductions that exceed
expectations due to the financial pressures on the healthcare system caused by an aging society witha declining birthrate

MarketRisk that climate change will cause a rise in raw material prices, which will lead to a rise in the cost ofliving for patients, thereby discouraging them from seeing a doctor

Shonan ResearchCenter

Chronic

Risk of increase in operating expenses, such as increase in manufacturing costs due to climate change

Acute

Risk of supply chain disruptions due to disasters caused by extreme weather events∙ Strengthening competitiveness against climate change-related increases in disease and changes in consumer
Opportunities

preferences leads to greater demand for products∙ Proactive initiatives to address climate change risks, enhance operational sustainability and stakeholder
evaluation, leading to opportunities for share price appreciation

Office Environmental Management Supervisor
Iwaki FactoryPolicies

Reputation Increase of stakeholder concerns due to delays in climate change action

President
ASKA Pharmaceutical Holdings

Board (FSB) in 2022 at the request of the G20. Throughthe implementation of scenario analysis and identificationof risks and opportunities based on the TCFD framework,
the Group is developing measures to address the risksand opportunities associated with climate change and isworking to improve the resilience of its business in theface of climate change.

Head Office/Sales

Note: Items other than strategy can be seen on our website.									https://www.aska-pharma-hd.co.jp/english/csr/tcfd.html(AsJulyof 1,July1, 2023)(As of2023)

Working toward a Carbon-Neutral Society The Group considers climate change to be one of the mostimportant issues for global environmental conservation, andis working to reduce its greenhouse gas emissions. ASKA
Pharmaceutical is promoting the deployment of eco-friendly
commercial vehicles and is using hybrid vehicles in all casesexcept for 4WD vehicles in cold regions. We renovated ourhead office building to promote the efficient use of spaceand paperless operations. The Shonan Research Center uses
100% renewable energy-derived, non-FIT, non-fossil certificate
electricity for the electricity it purchases. It also has highefficiency in-house power generation equipment onsite anda solar power-derived energy supply. At the Iwaki Factory, wehave worked to improve the operational efficiency of thecogeneration (combined heat and power) system and themanufacturing process. Future initiatives include plans topurchase CO2-free electricity and introduce solar powergeneration under the PPA1 method. In FY2022, ASKA
Pharmaceutical’s company-wide energy consumption wasequivalent to 6,128 kl of crude oil, and CO2 emissions were
10,780 t-CO2. With respect to our medium-term target of a
46% reduction in CO2 emissions by FY2030 compared toFY2013, we have achieved a 39% reduction so far.

Establishment of a Recycling-oriented Society •C O2 Emissions Volume(t-CO2)

18,000

Solar power generation2

Solar power generation2

Solar power generation2Solar power generation2

91,000kWh

81,000kWh102,000kWh

101,000kWh

17,72615,00027%
Reduction
12,95325%
Reduction
13,21512,00031%
Reduction
12,251

39%
Reduction
10,7809,00002013

2019

2020

2021

2022(FY)

1.	PPA: Power Purchase Agreement	A system that enables companies that own and manage solar power generationequipment (the PPA provider) to install that equipment at sites or roofs provided byfacility owners, and those owners (electricity users) purchase the power generated
by the solar power generation equipment at a discount.
2. ASKA Pharmaceutical Iwaki Factory

Switching to CO2-Free Electricity As mentioned above, as part of the Group’s effort to reducegreenhouse gas emissions, we have set a specific target ofreducing CO2 emissions by 46% by FY2030 compared toFY2013, with the aim of having the Group become carbonneutral by 2050. As one of the measures to achieve this goal,
we introduced CO2-free electricity at the Iwaki Factory inApril 2023 to make up a portion of its power supply. The
facilities account for about 80% of our energy consumption.
We expect this move to reduce the Company’s annual CO254

ASKA HD REPORT 2023

emissions by approximately 530 tons. The switch will be madein stages, accounting for a total reduction of approximately
2,200 tons of CO2 emissions. In addition, from the viewpointof cost reduction, we have decided to install a solar power
generation system (under the PPA1 method), which we expect
will reduce CO2 emissions by approximately 440 tons peryear. Construction has begun and preparations are underway
to begin supplying electricity in the spring of 2024.

As part of our efforts to build a recycling-oriented society
aimed at more efficient resource use, minimizing waste asmuch as possible is an important issue for maintaining business
continuity. We have set the reduction of waste as a target inour medium-term environmental plan and are actively working
on resource saving and waste reduction measures. Of the 193
tons of waste generated by ASKA Pharmaceutical’s factory andresearch center in FY2022, 111 tons were ultimately recycled,
which is 58% of the total amount of waste generated. In
addition, 70 tons were consigned to final disposal, or 36% of
the total amount of waste generated.

Total Waste/Amount Recycled/Amount for Final
Disposal/Recycling Rate (Factory and Research Center)
FY2020

FY2021

FY2022

Total waste (t)

144

174

193

Amount recycled (t)

94

101

111

Amount for final disposal (t)

43

65

70

Recycling rate (%)

66

58

58

FY2021: W aste volume increased mainly due to the digitization of package inserts,
partial discontinuation of manufacturing processes, and product recalls.

Management of Air and Water Resources Management of Chemical Substances To prevent air pollution, the Group is working to reduce
emissions of hazardous substances. We measure and report
the concentrations of NOx, SOx, soot and dust at our businesslocations twice a year, and all of these concentrations are
below the standard values. In addition, water resources used
at our business locations are discharged into rivers and sewers
after appropriate treatment and water quality control inaccordance with regulations. At the ASKA Pharmaceutical
Iwaki Factory, we conduct daily water quality monitoring,
weekly water quality analysis, reporting to the Iwaki City
Environmental Monitoring Center, and on-site inspection(once a year), all of which meet the standard values. We willcontinue to strive to reduce emissions of hazardous substances
through appropriate management of air and water resources.

The Group handles a wide variety of chemical substances
and is committed to thorough management of thesesubstances, which includes their safe use and storage. We
have also established a system for the proper managementof chemical substances at each of our business locations,and review the rules and regulations for this system asnecessary. We will continue to reduce emissions and transfersof chemical substances subject to the Pollutant Release andTransfer Register (PRTR)* system and promote appropriate
management of chemical substances by considering the useof alternative, safer chemical substances.
*A system for collecting and disseminating information about releases and transfers ofchemical substances

Biodiversity 
The Group recognizes that the environmental impact associatedwith our business activities affects biodiversity. We strive toreduce this impact in various ways, including through resource
conservation and climate change countermeasures, in orderto maintain and conserve biodiversity.

We will also develop our veterinary pharmaceuticals andanimal feed additives businesses so that we can contributeto the creation of a society where people and animals cancoexist in harmony.
ASKA HD REPORT 2023

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