Our Initiatives for SDGs
OUR PRACTICES TO ACHIEVE THE SDGs

Annual Activity Report for Fiscal Year 2023
Introduction.
In March 2020, we endorsed the principles of the 'United Nations Global Compact' and announced our participation in it. We then launched internal
activities using the 'Sustainable Development Goals (SDGs)' as an indicator to comply with and put into practice in the principles these activities.Theinitiative, which began in FY2020, has been in progress for fourth years, and we are deepening our efforts to achieve the goals through the activities ofeach division. In addition, we announced our participation in SBTi in March 2023. We have set a greenhouse gas reduction target and will implement
carbon dioxide emission reduction toward 2030. [Targets] “We commit to reduce scope 1 and scope 2 GHG emissions 42% by 2030 from a 2021 baseyear, and to measure and reduce its scope 3 emissions.”
This report is based on the annual activity reports of each division for FY2023. For each activity, semiannual progress checks and revisions are madeto revitalize activities for the year.Although the measures against infectious diseases caused by the new coronavirus have been relaxed to category 5
infectious diseases and countermeasures have been changed, we will continue the stable production of pharmaceutical products and enhance healthpromotion for our employees, as well as make these efforts a "matter of course" for each and every one of us in response to the principles of theSDGs, aiming to create a better working environment and to implement stable corporate activities. We also aim to create a better working
environment and implement stable corporate activities. In order to realize "efforts to address environmental issues" and "reform of work styles andenhancement of workplace environment" in our daily activities, we believe it is necessary to aim for corporate activities based on ensuring the healthof all employees and the health and safety of the local community, and also taking into consideration the protection of the global environment.
Each of our employees are encouraged to review the practical targets set for each division to which they belong and the progress of their annualactivities toward these targets, in order to revitalize their SDG activities toward achieving their respective targets for the next fiscal year.
FUJIMOTO CHEMICALS Co,LTDESG Promotion Department
April 26, 2024
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SDGs Activity Goals for FY2023
Target Setting: 28 April 2023
ESG Promotion Department
Goal 3：Good health and Well-being
Business goal：Social contributions through core business・Through our contract manufacturing business of active pharmaceutical ingredients, wemanufacture high-quality pharmaceuticals under cGMP control and contribute to the healthof people around the world through stable supply.
【Division Goals】
Production Division：Ensure production plans and deadlines are met and maintain a quality assurance system

Research & Development Division：Practicing social contribution through drug development

Administration Division：Ensure compliance with laws and regulations and revitalize the company

Sales Division：Stable procurement of raw materials

Goal 7：Aﬀordable and Clean energy
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】
Production Division：Practicing environmental measures through ISO 14001 andenergy-saving activities

Research & Development Division：Contribution to pharmaceutical manufacturing with reduced environmental impact

Administration Division：Digitalization of business processes, transformation into an ecosystem (DX)

Sales Division：Improving the eﬃciency of sales activities

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Goal 8：Decent work and Economic growthBusiness Goal：Respect for human rights and compliance with laws and regulations through businessactivities
・Achieve revitalization of the organization by promoting work style reforms.
・Use in-company human resources eﬃciently and systematically recruit employees, looking aheadto the future.
・Strengthen the CSR procurement throughout the supply chain.
【Division Goals】
Production Division： Reduce overtime and workload

Research & Development Division： Execution of an ongoing training system and participation in conferences and workshops

Administration Division： Recruitment and employee skill development in line with company strategy

Sales Division： Strengthening communication skills

Goal 9：Industry, Innovation and Infrastructure
Business Goal：Technological Development to Contribute to Pharmaceutical Manufacturing APIs
The modalities of pharmaceuticals are evolving in a wide range of variations. Our company aims todevelop technologies that contribute not just to the small molecule drugs in which we are experts but
also other therapeutic modalities such as nucleic acid and mRNA.
【Division Goals】
Production Division
Research & Development Division
Administration Division
Sales Division

ー：Contribution to pharmaceutical manufacturing through the development of new technologies
ー：Expansion of nucleic acid business

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Goal 12：Responsible consumption and Production
Business Goal：Risk management, promotion of crisis management, reduction of raw material consumption,enhancement of 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】
Production Division：Compliance with laws and regulations related to chemical substances, waste reduction,and recycling promotion

Research & Development Division：Promote initiatives through manufacturing process optimization studies

Administration Division：Promote CSR and risk managemen

Sales Division：Multiple sources of critical raw materials and information gathering for the introduction of new technologies

Goal 14：Life below water
Business Goal：Industrial wastewater management
・Complete management of the facilities of activated sludge process. Achieve the regulated value oftreated 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 highpotency active pharmaceutical ingredient.
【Division Goals】
Production Division：KYK Used Tare and Industrial Wastewater Management

Research & Development Division：Acquire knowledge of industrial wastewater management and water quality controlAdministration Division
Sales Division

ー：Eﬀective utilization of industrial waste

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Production Division Action Targets/Progress
Action Items

Targets

SDG Goal Status of Achievment

Progress

Senboku

Stable production of Product C and Product F

Achieve the planned quantity of goods

Goal 3just as planned

100%

Plant

Introduction of milling process for Product S

PV completed

Goal 3

PV implemented

100%Achievement of "zero" complaints

0 caseGoal 33 cases occurred

0%Introduction of environmentally friendly equipments

three or more cases

Goal 7

7 cases

100%Reduction of electricity consumption

0.1% reduction

Goal 70.1%

100%

Workload reduction by appropriate workforce planning and recruitments

75% or less operation rate

Goal 874.5%

100%

Accident/disaster-free operations

0 caseGoal 12 0 case

100%

Resource and energy savings by solvent recycling and other measures

1 case or more

Goal 12 1 case100%

Thorough management of used containers for pharmacologically active

No exposure incident

Goal 14 0 case

100%

Compliance with regulated standards

Goal 14 Regulatory compliance100%

Study of changes for each item

Goal 3

100%

materials
Trend analysis of activated sludge treatment through daily monitoringand implementation of countermeasures
Kinraku Plant Stable supply of product P
Consideration of changing raw material manufacturer for difficult-to-Sodium hydride manufacturer change study(use test) completed, change approved

procure raw materials(Change of manufacturer of sodium hydride, etc.)
Establishment of system to increase production of Product G

Product A: Increase production

Establishment of 13-lot/year system.

Goal 3Completed technology transfer of intermediate T toEstablishment of system to increase production

subcontractor N.

of intermediate T by subcontractor N.
Completion of technology transfer toAchieved of technology transfer to subcontractor A

100%

100%

subcontractor A
Achievement of "zero" complaints

0 caseGoal 30 case

100%

Introduction of environmentally friendly equipments

four or more cases

Goal 74 cases

100%

Reduction of electricity consumption

0.2% reduction

Goal 7

0.22%

100%

Reduce workload by planning and recruiting appropriate personnel.

70% or less operation rate

Goal 8

66.4%

100%

Accident/disaster-free operations

zero accident

Goal 12 2 cases occurred

Reduce energy and waste by improving manufacturing processes

One or more casesGoal 12 1 case

100%

Goal 14 Compliance achieved

100%

Daily monitoring and weekly water quality testing

Compliance with regulated standards

Management

Ensure implementation of capital investment plans to increase plant

Construction of a new administration building Goal 3

Completion of new administration building, design＆ Planning

productivity

and execution of a new factory PJ

ongoing with new factory PJ in operation.

Department

Implementation of environmental activities through ISO14001 and energy saving activities

0%

100%

・Promotion of ISO14001 activities

Zero finding at JQA audit

Goal 70 case100%・Promotion of energy-saving activities

1% reduction of energy intensity

Goal 7

1.0% reduction from the previous fiscal year, ongoing

100%Compliance with Chemical Substance Related Regulations

Compliance with Chemical Substances

Goal 12 respond in full

100%

Goal 3100%

Control and Industrial Safety and Health
Quality

Execution of planned supplyer audits

47 audits planned

Assurance
Department

5/8

58 audits executedResearch and Development Division Action Targets/Progress
Action Items

Targets

SDG Goal Remarks

Status of Achievement

Progress

Against FY2030 Targets
Research and・Contract manufacturing of products underDevelopment

development

Division・Scale-up study

90 cases : 2030

・No overtime work for all employees

90 products : 2030

15 products

17%

Goal 718 cases

20%

120 times : 2030

Goal 736 times

30%

・Participation in conferences and workshops

150 cases : 2030

Goal 899 cases

66%

・Study of new technology development

30 cases : 2030

Goal 912 cases40%

19 cases

63%

No abnormality for 3 years

30%

3 sessions

30%

・Study of manufacturing method improvement 30 cases : 2030

Goal 3

Goal 12Goal 14・Zero TOC abnormality in waste water

100% : 2030

・Study sessions on water quality10 sessions : 2030 Goal 14

Against FY2023 targets
Process

・Contract manufacturing of products underDevelopment

development

Laboratory

・Scale-up study

9 products : 2023

Goal 36 products

67%

9 cases : 2023

Goal 7

5 cases

56%

・No overtime work for all employees

12 times : 2023

Goal 7

conducted jointly 12 times

100%

・Participation in conferences and workshops

8 cases : 2023

Goal 820 cases

100%

・Improvement of manufacturing process

3 cases : 2023

Goal 124 cases100%

・ Zero TOC abnormality in waste water

100% : 2023

Goal 14conducted jointly No abnormality100%

・Study sessions on water quality

1 session : 2023

Goal 14conducted jointly 1 session

100%

Basic Technology

・No overtime work for all employees

12 times : 2023

Goal 7

conducted jointly 12 times

100%

Debelopment

・Participation in conferences and workshops

7 cases : 2023

Goal 811 cases100%

Laboratory

・Study of new technology development

3 cases : 2023

Goal 94 cases in progress

100%

・Zero TOC abnormality in waste water

100%: 2023

Goal 14conducted jointly No abnormality

100%

・Study sessions on water quality

1 session : 2023

Goal 14conducted jointly 1 session100%6/8

Administration Division Action Targets/ Progress
Action Items
Administration Transformation intoDivision

Targets/ Goals

SDG Goal Remarks

Status of Achievement

BPR of core business systems

Goal 7OBC

OBC installed and running in parallel100%

HR BrainPayroll outsourcing started in February

100%

Goal 7

NEC Aspirecompletion

100%

Goal 8

Increase theNew graduates hired: 12 (R&D 3, QC 3, manufacturing 6)100%

9 mid-career hires since April(pharmacists 3, chief

100%

an Ecosystem(DX)Payroll Outsourcing

Realization ofReduction of fixed-line phones and smartfuturistic officephone extensions by restructuring

Progressbusiness extensions
Recruitment

New graduates and mid-career workers
total 15 + α

number of(manufacturing 5, QC 4, R&D 4, sales 2,pharmacistsand pharmacist)electrician 1, sales 1, QC 2, manufacturing 2→1 retired)
Goal 8

Employee Skill

Conduct training (by job level, newDevelopment

employees, etc.)

specific, one training of web-based

Establishment of rules to promote English

Created internal bylaws to promote English language use

language use within the company

within the company

BCP Review

Conduct BCP training

Goal 12One training for new employees, two training for rank-

Not implemented(to be implemented in the next fiscal

100%100%0%year)
Update of BCP documentation

Revision Completed

100%

Goal 12Introduction of renewable energy from May

100%

Goal 3

3 times revised

100%

Goal 3

100% (5 out of 5 males taked)

100%

33 employees with less than 6 paid holidays

87%(22% or more of female employees)

24% on April.2024

100%(At least 2 female managers)

3 female managers

100%

Goal 3

Certified in FY2024

100%

Goal 3

SMILE Cloud Starts from October100%

Through compliance

Promotion of CSR (introduction ofwith laws andrenewable energy)

regulations

Review and update of work rules andregulations

CompanyMore than 25% male maternity holiday

revitalization activities Promotion of paid holidays (at least 6 days Goal 3taken)
Women's Empowerment

Certified as an excellent health

Goal 3management corporation
Electronic bookkeeping, invoice support

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Sales Division Action Targets/ Progress
Action Items

Targets

SDG Goal Remarks

Status of Achievement

CSR Risk Assessment

30 cases

Goal 330 cases conducted

100%Division Promote energy-saving activities

2 cases

Goal 7

Iodine/Pd recovery,

Iodine: Continued to be collected through a cooperative company of the manufacturer.

100%

Green Procurement of Goods

Pd: Recycled by a recycling company (2.2 kg collected, 8.19 million yen profit).

Sales

Progress

Of the 180,000 yen purchased, 90,000 yen (approx. 50%) was procured through GreenProcurement. (Decrease from 63% of the previous year's result).
Study group

Information sharing and Goal 8

New employee training, English skill improvement (English conversation (in-houseskill development

instructors), TOEIC exam, FDA and overseas customer support)

100%

Cooperation with internal departments regarding procurement of pharmaceutical raw
materials. Participation in regulatory seminars.
Strengthening the foundation of the Themes acquired
nucleic acid business

Goal 9(5 cases)

Embodied Business with Company

Fujimat🄬 orders: 2 orders

SPAmidite Block: 2 orders from Company SP (R&D phase)50%

and introduction of Amidite Blockand Capping agent

Scheduling for introduction of

6 cases

Goal 9Product PA, Product N,

Product PA: Orders received．Product N: Orders received． Product O: Development

marketed products and late-stage

Product O,Product H,suspended．Product H: order received． Product K: proposed → unordered．

development products

Product K, Product C

Product C: unordered．Product S: order received．Product X: order received．

100%

Product S2: unordered．Product O1: order received．Product K: order received
Stable supply of main products

5 cases

Goal 12

Product A, Product F,

Check the quantity and schedule of each main product and coordinate with related

Product G, Product C,departments.

Product S→The decrease in production of product S was compensated by product X.

Flow Synthesis/ADC Market

Flow Synthesis trends

Researchand ADC marketother companies' flow synthesis technologies (not yet completed up to the listing ofresearch in Pharmira andinformation).

other CDMOs

ADC market research: Preparing to access the U.S. market in the second half of the year. →(5 projects)

ADC market research is insufficient. On the other hand, in preparation for U.S. expansion,

Goal 9Flow Synthesis: Only status check at Company P was conducted. →Check the status of

100%

50%

we are revising our presentation and preparing for access to customers in cooperation withCompany I and a consulting firm.
New material and product3 cases

Goal 12development

Receive orders for developed

Company D: no new order．Company A: no new order．Company PE: Started work on newproducts such as electronic

grade product C (trial production at partner company D scheduled for the end of the year)

materials and cosmetics

Cosmetics parts: Acquisition of development projects for rice nuka water and silk water,

66%

and implementation of manufacturing.
Stable procurement of key raw

5 cases

Goal 12

Looking at non-Chinese sourcesmaterials

5 cases executed.

100%

Raw Material P:no progress on．Intermediate Material T:nonconformance on．Product
M:evaluated (development discontinued at Company N)．Raw Material DI:evaluation
completed and scheduled for purchase in 2024．Raw Material DE:evaluation completed ofCompany NN product and scheduled for delivery in 2024．

Effective Utilization of Waste Liquid 2 cases

Goal 14

Iodine/Pd recovery

already supported

8/8

100%