Environmental Goals and Performance

Sumitomo Pharma's business activities affect the environment in various ways at every stage of research and development, manufacturing, logistics and marketing, as well as the use of its products by customers. All our employees are aware of this environmental impact and work to reduce it.

Perspective on Environmental Impact (FY2019)

Boundary of calculation:
Total energy consumption and CO₂ emissions (Scope 1, Scope 2): 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. and Sumitomo Pharma Oncology, Inc.)

Water withdrawal (tap water, industrial water, ground water, and others) and total amount of water discharged: Sumitomo Pharma Co., Ltd. (not including branches and business offices), consolidated subsidiaries in Japan (not including small offices), overseas consolidated subsidiaries' production sites (Sumitomo Pharma (Suzhou) Co., Ltd.) and their major R&D facilities (Sunovion Pharmaceuticals Inc. and Sumitomo Pharma Oncology, Inc.)

Other: Sumitomo Pharma Co., Ltd.; however, waste excludes branches and business offices.

Methods of Calculation and Emissions Intensity, etc.:

*1(Purchased electricity × unit calorific value) + (purchased heat × unit calorific value) + (fuel consumption × unit calorific value)
The unit calorific values and the types of fuel to be calculated are based on the "Act on the Rational Use of Energy." It includes fuel consumed by business vehicles in Japan and solar power generated at our business sites.
*2 Fuel consumption × fuel unit calorific value × fuel CO₂ emissions factor
The unit calorific values and CO₂ emissions factors are based on "Greenhouse Gas Emissions Accounting, Reporting, and Disclosure System" which is provided in the "Act on Promotion of Global Warming Countermeasures."
*3Purchased electricity × electricity CO₂ emissions factor^**1 + purchased heat × heat CO₂ emissions factor^**2
1. **1 For domestic sites, adjusted emissions factor from "Emission Factors by Power Suppliers (for calculation of greenhouse gas emissions by specific emitters) (Fiscal 2020 results)" published by the Ministry of the Environment and the Ministry of Economy, Trade and Industry of Japan(January 7, 2022), for overseas sites, the emissions factors by country for 2019 most recently published by the International Energy Agency (IEA). However, we use values provided by Sumitomo Chemical Co., Ltd. for sites located on the premises of Sumitomo Chemical Co., Ltd. Prior to fiscal 2021, we used the value (0.33t-CO₂/thousand kWh) that the Federation of Pharmaceutical Manufacturers' Associations of JAPAN has adopted to manage progress toward its CO₂ reduction targets, and Scope 2 emissions for fiscal 2021 calculated using this value were 38,737t-CO₂.
2. **2 Values are based on "Greenhouse Gas Emissions Accounting, Reporting, and Disclosure System" which is provided in "Act on Promotion of Global Warming Countermeasures." However, we use values provided by Sumitomo Chemical Co, Ltd. for sites located on the premises of Sumitomo Chemical Co., Ltd.
*4The amount of water withdrawal from tap water, industrial water, ground water, and other.
*5Total amount of water discharged into sewerage and public water bodies and so on. As for sites where the amount of water discharged is not measured, the total amount of water discharged is considered to be equivalent to the total amount of water withdrawal.

Note: The environmental performance indicators marked with have received third-party assurance. The Independent Assurance Report is on "Third-Party Assurance."

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 2021 performance are as follows.

Period covered: April 1, 2021 to March 31, 2022
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)	4.4	224.6
	(2) Global environmental protection cost	- Promotion of energy conservation (use of LEDs) - Prevention of global warming (proper collection of CFCs)	222.0	90.8
	(3) Resources recycling cost	Treatment and recycling of waste	0.0	304.3
2. Upstream and downstream costs		Outsourcing of recycling of containers and packaging	0.0	38.8
3. Administration cost		- Maintenance and operation of environmental management systems - Nature conservation, planting of greenery, etc.	0.0	113.5
4. Research and development cost		－	0.0	0.0
5. Social activities cost		－	0.0	0.0
6. Environmental remediation cost		－	0.0	0.0
7. Other costs		－	0.0	0.0
Total		－	226.4	772.0

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	2.8
Effect of resource saving	0.0
Effect of energy saving	0.0
Total	2.8

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 2021
Effect on resources used for business activities	Energy consumption[TJ]	-26	1,247
Effect on resources used for business activities	Water withdrawal [thousand t]	-7	814
Effect on environmental impact and waste arising from business activities	CO₂ emissions [t-CO₂]	-965	53,116
	PRTR substances released into the atmosphere [t]	-1.3	3.0
	SOx released [t]	0.1	0.3
	NOx released [t]	-4.6	37.5
	Dust emissions [t]	0.0	0.2
	Total amount of water discharged [thousand t]	-7	814
	BOD load [t]	0.0	0.2
	COD load [t]	0.0	2.2
	Final disposal of waste [t]	-38	18

Sumitomo Pharma has clarified priority issues related to its environmental activities and has established its Mid-term Environmental Goals as the action targets to realize these goals and make continuous improvements.

In our Mid-term Environmental Goals, which set their evaluation period from fiscal 2021 to fiscal 2023, we have established seven priority issues. In addition, based on domestic and international trends, including the SDGs and the Paris Agreement, we have established our Long-term Environmental Goals to be achieved by fiscal 2030 and fiscal 2050 for greenhouse gas (GHG) emissions, water withdrawal, and waste. With regard to our Long-term Environmental Goals, we also evaluate our progress in our three-year Mid-term Environmental Goals and implement measures to achieve these goals.

Click here (Sustainability "Materiality") for the positioning of our environmental initiatives in materiality, as well as their goals and KPIs.

Priority issues		Goals^*1
Creating low-carbon society		Reduce emissions of greenhouse gases (GHG) to curtail rises in average global temperatures. <Target> Aiming at zero GHG emissions (Scope 1+2) by fiscal 2050.^2 <Target> Reduce GHG emissions (Scope 1+2) by 35% from fiscal 2017 level by fiscal 2030.^2 Promote energy saving through more efficient energy usage. <Target> Reduce 5-year average per-unit energy consumption by at least 1% each year.
Effective use of resources	Water	Preserve water resources by reducing water withdrawal. <Target> Reduce water withdrawal by 12% from fiscal 2018 level by fiscal 2030.^*2
Effective use of resources	Waste	Carry out proper waste management and treatment, and promote 3Rs (reduce, reuse, recycle) to efficiently utilize limited resources. <Targets> ① Maintain recycling rate at 80% or higher and aim for at least 85% by fiscal 2030.^2 ② Maintain final disposal rate at less than 1% and aim for less than 0.5% by fiscal 2030.^2
Management of chemical substances		Properly manage chemical substances to prevent air, water and ground pollution. <Targets> ① Maintain atmospheric emission rate of PRTR substances at less than 1%. ② Maintain atmospheric emission rate of VOC substances at less than 1%. Act responsibly as a company producing and selling antimicrobials through efforts to prevent antimicrobial resistance (AMR). <Target> Conduct regular AMR audits of Oita Plant.
Compliance with laws and regulations Prevention of environmental accidents		Draw up environmental management operation manuals for the operation and continuous improvement of environment management systems. <Targets> ① Maintain ISO14001 certification for 2 plants. ② Regularly carry out internal environmental audits. ③ Aim at zero serious violations of laws and regulations and zero environmental accidents.
Education, raising awareness		Through continuous environmental education, make all staff fully aware of the importance of environmental conservation. <Target> Make Japanese "Environment Month (June)" an environmental awareness month and have all staff participate through awareness-enhancing messages from the executive officer in charge (every year).
Biodiversity conservation		Have each business site actively participate in local activities contributing to biodiversity (cleaning up river beds etc.).
Proper information disclosure Evaluation and management of risks and opportunities		Disclose reliable information on the environment in a proper and timely manner and engage in active dialogue with stakeholders. <Target> Evaluate and manage risks and opportunities related to climate change and water and disclose relevant information.

^*1: If the fiscal year by which the goals should be achieved is not stated in the "Goals" column, the evaluation period for those priority issues shall be from fiscal 2021 to 2023.

^*2: In the Mid-term Environmental Goals (fiscal 2021-2023), evaluate progress toward the targets of the Long-term Environmental Goals, and formulate and implement measures to help ensure achievement of the goals.

Mid- to Long-term Environmental Goals and Major Achievements

Overview of Environmental Impact (Fiscal 2021)

Environmental Accounting

Time period covered and scope

Economic Effect

Effect of Environmental Protection

Environmental Goals

Mid-to Long-term Environmental Goals

Mid- to Long-term Environmental Goals and Major Achievements