Contributing to Building a Low-carbon Society
Efforts to Save Energy and Reduce CO2 Emissions
Supporting the Japanese Government's carbon neutral declaration, Sumitomo Pharma aims to reduce greenhouse gas (GHG) emissions (Scope 1+2) to zero by fiscal 2050 through fossil fuel substitution. This will be achieved through the active use of energy saving and carbon dioxide eliminating technologies, which are expected to advance in the future, and renewable energy which is forecast to expand.
Fiscal 2021 was the first year of evaluation of our target to "reduce GHG emissions (Scope 1 + 2) by 35% from fiscal 2017 level by fiscal 2030." We consolidated our production bases into two plants in fiscal 2019 and switched 100% of the electricity used at our Oita Plant to renewable energy sources in November 2021*1. As a result, we were able to achieve an approximately 30% reduction in GHG emissions. We also switched 100% of the electricity purchased at our Suzuka Plant to renewable energy*2 in April 2022 and, therefore, expect to achieve the target ahead of schedule. Going forward, we plan to strengthen our fiscal 2030 target in order to realize carbon neutrality by fiscal 2050.
Each year, we have solicited capital investment plans aiming to save energy and reduce CO2 from individual business locations. In addition, in consideration of the cost benefits of the reductions in CO2 (yen/t-CO2) and investment recovery periods, we have systematically promoted the installation of LED lighting and equipment with greater energy efficiency, and each employee has been engaged in sustained energy saving activities*3 such as thorough air conditioning temperature control, reducing air conditioning use by adjusting clothing, and eco-driving. These efforts have also contributed to the achievement of the target. Moreover, we are currently promoting further energy conservation in the sales force by shifting from hybrid cars to EV vehicles, including the introduction of 11 EV vehicles for the sales force in fiscal 2021.
*1 Sumitomo Chemical Co., Ltd. Press Release：
https://www.sumitomo-chem.co.jp/english/news/detail/20211021e.html
*2 By adding environmental value to the electric power procured by Chubu Electric Power Miraiz through the use of non-fossil fuel energy certificates for sources of renewable energy such as hydroelectric electric power plants owned by the Chubu Electric Power Group, it is in effect achieving zero CO2 emissions
Press Release: https://www.sumitomo-pharma.com/ir/news/2022/20220408.html
*3 We have adopted the logo of "COOL CHOICE (=Smart Choice) (Japanese Ministry of the Environment Website: https://ondankataisaku.env.go.jp/coolchoice/about/）[in Japanese only]. This is a Japanese Government initiative to contribute to measures against global warming by promoting smart choices in purchasing products, in the use services, and in lifestyles, that achieve energy saving and low carbonization. We are also working on further enhancing employee awareness by using the icons for Sustainable Development Goal 7 "Affordable and Clean Energy" and 13 "Climate Action"
| 
| 
|
We support the Act on the Rational Use of Energy, the Act on Promotion of Global Warming Countermeasures, and the Climate Change Adaptation Act, which are laws related to energy conservation and climate change. We appropriately and regularly report to the government on our energy consumption, etc.
CO2 Emissions (Energy Sources) Trends
Boundary of calculation:
Fiscal 2021: Sumitomo Pharma Co., Ltd., consolidated subsidiaries in Japan, overseas consolidated subsidiaries' production sites (Sumitomo Pharma (Suzhou) Co., Ltd.) and their major R&D facilities (Sunovion Pharmaceuticals Inc., Sumitomo Pharma Oncology, Inc.)
Prior to fiscal 2021: Non-consolidated (Sumitomo Pharma Co., Ltd. only)
Please refer to the webpage "Environmental Goals and Performance" for the details of the calculation criteria.
Note: The environmental performance indicators marked with 
have received third-party assurance. The Independent Assurance Report is on "Third-Party Assurance."
Energy Consumption Trends
Boundary of calculation:
Fiscal 2021: Sumitomo Pharma Co., Ltd., consolidated subsidiaries in Japan, overseas consolidated subsidiaries' production sites (Sumitomo Pharma (Suzhou) Co., Ltd.) and their major R&D facilities (Sunovion Pharmaceuticals Inc., Sumitomo Pharma Oncology, Inc.)
Prior to fiscal 2021: Non-consolidated (Sumitomo Pharma Co., Ltd. only)
(Note) The environmental performance indicators marked with have received Third-Party Assurance. The Independent Assurance Report can be viewed at "Third Party Assurance".
For details of calculation criteria, please refer to the "Environmental Goals and Performance" webpage.
Solar Power Generating Systems
Sumitomo Pharma has installed solar power generation systems at our Central Research Laboratories and the Osaka Research Center and the amount generated at our Central Research Laboratories in fiscal 2021 was 86 MWH. The total amount generated at our Osaka Research Center could not be calculated for fiscal 2021 due to instrument faults but the system generated electricity throughout the year.
Left photo: Solar panels on the roof of a Central Research Laboratories building
Right photo: The solar power generation is displayed real-time on a monitor screen inside the research building to enhance environmental awareness of the employees.
Carbon-Neutral City Gas
Most of the city gas used at the Suzuka Plant for the cogeneration system and other purposes was switched to the carbon neutral city gas*4 supplied by Toho Gas Co., Ltd. in August 2021 (Supplied amount: 5,000,000 m3/year; period: 2 years 8 months). We have been contributing indirectly to CO2 reduction environmental conservation projects in various parts of the world through the purchase of carbon neutral city gas.
*4 Toho Gas Co., Ltd. Press Release
https://www.tohogas.co.jp/corporate-n/press/1223173_1342.html [in Japanese only]
Accounting of CO2 Emissions across the Supply Chain
We work to monitor CO2 emissions across the supply chain. CO2 Emissions both by Scope and by Category (in Scope 3) are as shown in the table below. Scope 3 emissions did not change significantly from fiscal 2019 to fiscal 2021. Also, with a decrease in business trips in fiscal 2020 and fiscal 2021 as a measure against the COVID-19 pandemic, Category 6 (business travel) emissions decreased to approximately 10-15%, compared to fiscal 2019.
In fiscal 2022, Sumitomo Chemical Co., Ltd. participated in the CDP Supply Chain Program*5. As a member of the Sumitomo Chemical Group, we have requested our major suppliers to disclose their GHG emissions as part of the program, and have commenced efforts to compile primary data*6 on Scope 3 Category 1 emissions. Moreover, in April 2022, we established the "Sustainable Code of Conduct for Business Partners,"*7 which sets forth five priority items that we expect from our business partners, in order to promote sustainability throughout the value chain. As for "environment," one of the priority items, we expect our business partners to make efforts to set voluntary targets regarding the reduction in GHG emissions and to promote their reduction measures. Going forward, we will set our targets regarding Scope 3 and work on reducing Scope 3 emissions through the CDP Supply Chain Program and collaboration with our business partners.
*5: CDP Supply Chain Program: https://www.cdp.net/en/supply-chain
*6: Compilation of primary data: Calculating emissions using data obtained directly from suppliers, etc., without using the database of emission intensity such as emission intensity contained in Ministry of the Environment DB.
*7: Sustainable Code of Conduct for Business Partners: https://www.sumitomo-pharma.com/sustainability/fair_and_transparent/partners.html
CO2 Emissions by Scope
| Scope | Definition | CO2 Emissions (t-CO2) in FY2019 |
CO2 Emissions (t-CO2) in FY2020 |
CO2 Emissions (t-CO2) in FY2021 |
Boundary |
|---|---|---|---|---|---|
| Scope 1 | Direct emissions of greenhouse gases from ourselves (fuel combustion, industrial processes) | 19,221 | 19,514 |  21,398 |
Shown in the graphs of CO2 Emissions (Energy Sources) Trends |
| Scope 2 | Indirect emissions from the consumption of electricity, heating, cooling and steam supplied by other parties | 35,270 | 34,567 | 40,351 |
|
| Scope 3 | Indirect emissions other than those covered in Scope 1 and Scope 2 (emissions by other parties involved with the activities of our business) | 380,001 | 393,973 | 383,644 | Shown in the table below |
CO2 Emissions by Category (Scope 3)
| Category | CO2 Emissions (t-CO2) in FY2019 |
CO2 Emissions (t-CO2) in FY2020 |
CO2 Emissions (t-CO2) in FY2021 |
Methods of Calculation and Emissions Intensity, etc. |
Boundary | |
|---|---|---|---|---|---|---|
| 1 | Purchased goods and services | 328,479 | 344,160 | 332,970 |
Calculated by multiplying the purchase price of raw materials and purchased products by the emissions intensity in Japanese Ministry of the Environment database | Production sites on a non-consolidated basis |
| 2 | Capital goods | 16,946 | 19,669 | 19,015 | Calculated by multiplying the acquisition price of the fixed asset by the emissions intensity in Japanese Ministry of the Environment database | Consolidated basis, including overseas subsidiaries |
| 3 | Fuel- and energy-related activities not included in Scope 1 or Scope 2 | 16,872 | 16,642 | 16,993 | Calculated by multiplying purchased electricity and steam by the emissions intensity in Japanese Ministry of the Environment database and purchased fuel by the emissions intensity in Carbon Footprint database or lifecycle inventory (LCI) database | Non-consolidated basis |
| 4 | Upstream transportation and distribution | 825 | 860 | 824 | Calculated by multiplying ton/kilometer for the transportation scenario by the emissions intensity in Japanese Ministry of the Environment database LCI database | Transport in Japan, on a non-consolidated basis |
| 5 | Waste generated in operations | 2,094 | 1,943 | 4,466 | Calculated by multiplying the weight of waste according to type and processing method by the emissions intensity in Japanese Ministry of the Environment database | Plants, research laboratories, distribution centers on a non-consolidated basis |
| 6 | Business travel | 5,356 | 554 | 886 | Calculated by multiplying business travel expenses paid by the emissions intensity in Japanese Ministry of the Environment database | Non-consolidated basis |
| 7 | Employee commuting | 848 | 732 | 651 | Calculated by multiplying commuting cost according to transportation means by the emissions intensity in Japanese Ministry of the Environment database | Non-consolidated basis |
| 8 | Upstream leased assets | Not relevant | Not relevant | Not relevant | ー | ー |
| 9 | Downstream transportation and distribution | 3,729 | 4,204 | 3,344 | Calculated by multiplying CO2 emissions (estimate) per unit of sales in drug wholesale industry by sales of our products in drug wholesale segment | Non-consolidated basis |
| 10 | Processing of sold products | Not relevant | Not relevant | Not relevant | ー | ー |
| 11 | Use of sold products | 4,371 | 4,770 | 4,065 | Calculated by multiplying HFC amount in pharmaceutical MDIs (metered dose inhalers) sold by GWP | Non-consolidated basis |
| 12 | End-of-life treatment of sold products | 371 | 335 | 323 | Calculated by multiplying the weight of the container and packaging according to material based on "Containers and Packaging Recycling Law" by the emissions intensity in Japanese Ministry of the Environment database | Non-consolidated basis |
| 13 | Downstream leased assets | 110 | 104 | 106 | Calculated by multiplying the energy consumption of the building asset owned and rented out by the conversion factors based on "Greenhouse Gas Emissions Accounting, Reporting, and Disclosure System" which is provided in "Act on Promotion of Global Warming Countermeasures" | Non-consolidated basis |
| 14 | Franchises | Not relevant | Not relevant | Not relevant | ー | ー |
| 15 | Investments | Not relevant | Not relevant | Not relevant | ー | ー |
Japanese Ministry of the Environment database (Ver. 3.0 applied to fiscal 2019 emissions, Ver. 3.1 applied to fiscal 2020 emissions, Ver. 3.2 applied to fiscal 2021 emissions,): The database on emissions unit values for accounting of greenhouse gas emissions, etc. by organizations throughout the supply chain
LCI database: LCI database IDEAv2 (for calculation of greenhouse gas emissions throughout the supply chain)
Note: The environmental performance indicators marked with have received third-party assurance. The Independent Assurance Report is on "Third-Party Assurance".
In addition, since CO2 emissions for major pharmaceutical wholesaling are disclosed in October, the total emissions in the table above differ from the total Scope 3 emissions disclosed in Integrated Report 2022, because the report does not include Category 9 emissions.
Partnership Initiatives
Partnership with Federation of Pharmaceutical Manufacturers' Associations of JAPAN
We participate in activities of the Federation of Pharmaceutical Manufacturers' Associations of Japan (FPMAJ) through our membership in the Japan Pharmaceutical Manufacturers' Association, an FPMAJ member. FPMAJ is member of the Japan Business Federation (KEIDANREN), which supports the Japanese Government's "2050 Carbon Neutral Declaration," has expressed its determination to work together with the Government to achieve it and drawn up a "Carbon Neutral Action Plan." Based on this action plan, FPMAJ has set the long-term vision of the Carbon Neutral Action Plan for the pharmaceutical industry as "achieving net-zero CO2 emissions by 2050" and established the Phase II target of "reducing CO2 emissions by 46% (research laboratories, plants, offices, and sales vehicles) from fiscal 2013 level by fiscal 2030," and is thus promoting the reduction in CO2 emissions. We are also participating in this action plan.
Also, in line with Japanese Government policy, FPMAJ is working on reducing emissions of chlorofluorocarbons, which are also GHGs, and has established "Chlorofluorocarbon Study Subcommittee," a specialist subcommittee. The subcommittee has drawn up a voluntary action plan including numerical goals and in addition to carrying out activities to control emissions of chlorofluorocarbon substitutes (HFCs) used in quantitative spray aerosols is supporting policy execution through regular reporting to the Industrial Structure Council of the Ministry of Economy, Trade and Industry. Since Sumitomo Pharma imports and sells Qvar®, an inhaled steroid asthma therapy containing HFC-134a as a propellant, we participate in subcommittee efforts to reduce HFCs and collaborate with the regulatory authorities.
Participating in Japan Climate Initiative
Japan Climate Initiative (JCI) is a network of companies, local governments, NGOs and others in Japan that actively tackles climate change with an aim to strengthen information dissemination and information exchange to realize a decarbonized society. In an endorsement of JCI's declaration that it is "Joining the front line of the global push for decarbonization from Japan," Sumitomo Pharma has been participating since October 2018. By publishing messages and sending letters to the Government, JCI has been seeking stronger measures against climate change. Sumitomo Pharma endorses JCI's "Long-term Strategy Demonstrating Japan's Leadership in Achieving a Decarbonized Society to the World" published by on May 16 2019," JCI Message to the Japanese Government Calling for Ambitious 2030 Goals to Realize the Paris Agreement" published on April 19 2021, and the JCI Message entitled "Now is the time to accelerate renewable energy deployment -Calling for stronger climate change action in the midst of the fossil energy crisis-" published on June 3, 2022.
Click here for "Long-term Strategy Demonstrating Japan's Leadership in Achieving a Decarbonized Society to the World" and a list of organizations endorsing it.
Click here for "JCI Message to the Japanese Government Calling for Ambitious 2030 Goals to Realize the Paris Agreement" and a list of organizations endorsing it.
Click here for JCI Message entitled "Now is the time to accelerate renewable energy deployment -Calling for stronger climate change action in the midst of the fossil energy crisis-" and a list of organizations endorsing it.