Company: TAK
Filing Date: 2025-06-25
Form Type: 20-F
Source: 0001395064-25-000095
Chunk: 23

Company: TAKEDA PHARMACEUTICAL CO LTD
Filing Date: 2025-06-25
Form: 20-F
Item: Item 3
Chunk 23
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 risk disclosure rules (currently stayed) as well as new sustainability disclosure rules expected to be adopted by Japan’s Financial Services Authority. These emerging requirements, as well as other laws and regulations such as the EU’s Corporate Sustainability Due Diligence Directive (CSDDD), could increase costs associated with our business operations, including the allocation of additional staffing and other resources and exposure to regulatory, litigation and reputational risk. In February 2025, the European Commission proposed significant reforms to CSRD, CSDDD and the EU Taxonomy to simplify and streamline compliance with those laws but it is unclear if that proposal will be enacted or what the final requirements will be.

We have adopted certain corporate goals and programs to help us address environmental sustainability risks and may evolve them to address other sustainability-related risks in the future as our stakeholders increasingly focus on these topics. We are committed to the achievement of these goals and are working to meet them, but we may nevertheless be unable to meet expectations and such goals and initiatives may also result in increased costs. With respect to environmental sustainability, we have committed to reducing our carbon footprint, minimizing waste sent to landfill from our operations, sourcing sustainable paper packaging and enhancing our water stewardship practices. In addition, i n FY2024, the Science Based Targets initiative (SBTi) validated our goals of achieving reductions in greenhouse gas emissions (GHG) in our operations (Scope 1 and 2) of 65% from a FY2016 baseline and GHG emissions in our value chain (estimated Scope 3) of 25% from a FY2022 baseline by FY2030 and achieving net-zero (as defined in the SBTi Corporate Net-Zero Standard) for Scope 1 and 2 GHG by FY2035 and Scope 3 by FY2040. Our ability to reduce Scope 3 emissions depends on our ability to secure emission reduction commitments from our suppliers and other business partners and continued advancements in technology that enables low emission activities and we may not be successful in achieving these reductions. For example, we were unable to meet our goal of obtaining commitments to establishing science-based emissions reduction targets from 67% of our suppliers by FY2024, having obtained commitments from 62% to date. We continue to engage with our vendors and suppliers to encourage them to cooperate with our environmental sustainability initiatives, including our net-zero goals. Moreover, although we have not yet recorded material expenses in connection with our net-zero initiatives, the costs of successfully implementing them, such as the costs of seeking renewable sources of energy, increasing the