Environmental Goals and Performance
Environmental Goals
Sumitomo Pharma is promoting a structured approach to environmental initiatives by identifying our priority issues and advancing efforts to address them. From a medium- to long-term perspective, we aim to address the issues facing society and social demands as part of our corporate social responsibility. To achieve this, we have established three priority issues (carbon neutrality, water, and resource circulation) along with two foundational issues (legal compliance/prevention of environmental accidents and stakeholder communication). Among these priority issues, the target for reducing water withdrawal has been updated to reflect the expected decrease in water withdrawal resulting from the downsizing of active pharmaceutical ingredient (API) manufacturing functions in fiscal 2024.
For more information on the positioning of our environmental initiatives in Material Issues, as well as their
goals and KPIs, please see "Material Issues."
Medium- to Long-term Environmental Goals (FY2024-FY2026)
| Priority Issues | Target | Target FY | Indicator*1 | Results for Fiscal 2024 |
|---|---|---|---|---|
| Carbon Neutrality | Achieve carbon neutrality by reducing GHG emissions. | FY2050 | Aiming at zero GHG emissions (Scope 1+2)*2 | 46,257 t-CO2 |
| FY2030 | ①<SBT> Reduce absolute Scope 1 and 2 GHG emissions 42% by fiscal 2030 from a fiscal 2020 base
year.*2 ②<SBT> Reduce absolute Scope 3 GHG emissions from purchased goods and services 25% by fiscal 2030 from a fiscal 2020 base year.*2 ③Increase the ratio of non-fossil electricity to 50% or more of total electricity use.*2 | ①Reduced by 36% compared to base year ②Increased by 44% compared to base year ③45% |
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| − | ①Replace all company vehicles‡ with hybrid or electric vehicles by fiscal 2026. ‡Excluding in-house vehicles ②Completely phase out the use of CFC-containing products and equipment by fiscal 2025. |
①95% ②1 unit left |
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| Water | Promote water conservation and address water risks. | FY2030 | Reduce water withdrawal to below the fiscal 2020 level (599 kt*3). | 644 kt |
| − | Conduct water risk assessments at production and research sites. | Implemented (no significant risks identified) | ||
| Resource Circulation | Promote waste reduction and recycling. | FY2030 | ①Achieve a plastic waste recycling rate of 65% or more.*2 ②Maintain recycling rate at 80% or higher and aim for at least 85% by fiscal 2030. ③Maintain final disposal rate at less than 1% and aim for less than 0.5% by fiscal 2030. | ①66% ②83％ ③0.25％ |
| Foundational Issues for Addressing Priority Issues | Targets | Major Achievements in fiscal 2024 |
|---|---|---|
| Legal Compliance Prevention of Environmental Accidents |
①Operate and continuously improve the environmental management system. ②Conduct regular internal environmental audits. ③Properly manage chemical substances including PRTR substances and antimicrobial agents. |
①No environmental accidents or serious violations of environmental laws and regulations. Maintain ISO14001 certification for Suzuka Plant and Oita Plant. ②Internal environmental audits conducted at five business sites. ③Air emission rate of PRTR substances kept below 1%. Conducted antimicrobial resistance (AMR) audits. |
| Stakeholder Communication | ①Provide timely and appropriate information disclosure and engage in active dialogue. ②Continuously implement environmental education and initiatives to enhance environmental awareness among all employees. ③Participate in local environmental conservation activities. ④Promote outreach to business partners including environmental due diligence. |
①Updated disclosures based on TCFD recommendations Received CDP scores of A in Climate Change and A- in Water Security. ②Issued an awareness message from the Chairperson of the Environmental Safety Committee and conducted company-wide environmental training on “Carbon Neutrality”. ③Participated in local cleanup and community activities at each business site. ④Conducted a sustainability survey targeting 30 major domestic Tier-1 suppliers. |
- *1SBT and 2050 GHG emissions reduction target are evaluated on a consolidated basis, and other targets are evaluated on a non-consolidated basis.
- *2As for the Medium-Term Environmental Goals (FY 2024-2026), progress is evaluated against the Long-Term Environmental Goals, and we develop and implement necessary measures to achieve the targets accordingly.
- *3Amount of water withdrawal in fiscal 2020, excluding water used at the downsized API manufacturing division.
For more information on calculation criteria details, please see "ESG Data Table."
Environmental Accounting
At Sumitomo Pharma, we undertake environmental accounting to gain a quantitative understanding of the investments and costs associated with environmental protection and the relative effectiveness of each. The calculated results for fiscal 2024 performance are as follows.
Time Period Covered and Scope
Period covered: April 1, 2024 to March 31, 2025
Scope: Non-consolidated basis
Method of calculation: Followed "Environmental Accounting Guidelines 2005" (Ministry of the Environment,
Japan)
(Millions of Yen)
| Classification of the cost of environmental protection | Key initiative | Investment | Expenditure | |
|---|---|---|---|---|
| 1. Business area costs | (1) Pollution prevention cost | - Prevention of air pollution (exhaust gas treatment, maintenance and control of treatment
equipment, measurement and analysis of exhaust gas) - Prevention of water pollution (wastewater treatment, maintenance and management of wastewater treatment facilities, measurement and analysis of wastewater) |
32.2 | 284.7 |
| (2) Global environmental protection cost | - Promotion of energy conservation (use of LEDs) - Prevention of global warming (proper collection of CFCs) |
498.7 | 101.3 | |
| (3) Resources recycling cost | Treatment and recycling of waste | 0.0 | 294.8 | |
| 2. Upstream and downstream costs | Outsourcing of recycling of containers and packaging | 0.0 | 5.0 | |
| 3. Administration cost | - Maintenance and operation of environmental management systems - Nature conservation, planting of greenery, etc. |
0.0 | 110.1 | |
| 4. Research and development cost |
− |
0.0 | 0.0 | |
| 5. Social activities cost | - Communication with the local community | 0.0 | 0.5 | |
| 6. Environmental remediation cost |
− |
0.0 | 0.1 | |
| 7. Other costs |
− |
0.0 | 0.0 | |
| Total |
− |
530.9 | 796.5 | |
Economic Effect
The economic effect of environmental protection measures was calculated using only the effects that could be computed on a firm basis, and no effects estimated through hypothetical calculations were included.
(Millions of yen)
| Particulars | Economic effect |
|---|---|
| Effect of recycling activity | 2.5 |
| Effect of resource saving | 1.2 |
| Effect of energy saving | 35.8 |
| Total | 39.5 |
Effect of Environmental Protection
The environmental impact was calculated and totaled on the basis of environmental performance indices, and the effect of environmental protection is presented here through a simple comparison with the previous year.
| Particulars of the effect | Classification | Increase/decrease of environmental impact | Environmental impact in FY 2024 |
|---|---|---|---|
| Effect on resources used for business activities | Energy consumption [MWh] | -36,710 | 196,462 |
| Water withdrawal [thousand t] | -188 | 644 | |
| Effect on environmental impact and waste arising from business activities | CO2 emissions [t-CO2] | -7,033 | 36,161 |
| PRTR substances released into the atmosphere [t] | -1.6 | 1.2 | |
| SOx released [t] | 0.1 | 0.5 | |
| NOx released [t] | -28.0 | 36.1 | |
| Dust emissions [t] | 0.0 | 0.3 | |
| Total amount of water discharged [thousand t] | -188 | 644 | |
| BOD load [t] | -0.2 | 0.2 | |
| COD load [t] | -1.9 | 2.9 | |
| Final disposal of waste [t] | 3 | 11 |