Effective Use of Resources
Effective Use of Water Resources
Good quality and sufficient quantities of fresh water are essential for our business activities, including the manufacturing of pharmaceutical products. As problems related to water resources are becoming increasingly serious worldwide, Sumitomo Pharma has set a Mid- to Long-term Environmental Goals of "reducing water withdrawal by 12% from fiscal 2018 level by fiscal 2030," in order to use water resources in a sustainable manner. Moreover, we believe that reducing water withdrawal leads to the protection of water sources and it is therefore an activity that indirectly contributes to the conservation of biodiversity.
We manage the water withdrawal and discharge at all of our establishments, excluding branches and business offices. In fiscal 2021, we took measures for effective use of water, such as upgrading to water-saving toilets and considering the installation of water-saving nozzles at facilities with high water withdrawal.
Click here (Environment "Environmental Goals and Performance") for details of the progress of the Mid-term Environmental Goals.
We will continue our efforts to reduce water withdrawal through pursuing greater efficiency in water usage and water saving measures.
Water Withdrawal and Breakdown by Withdrawal Source
Boundary of calculation:
Fiscal 2021: 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., Sumitomo Pharma Oncology, Inc.)
Prior to fiscal 2021: Sumitomo Pharma Co., Ltd. only (not including branches and business offices)
Note 1: The environmental performance indicators marked with 
have received third-party assurance. The Independent Assurance Report is on "Third-Party Assurance." Please refer to the webpage "Environmental Goals and Performance" for the details of the calculation criteria.
Water discharged and Breakdown by Discharge Destination
Boundary of calculation:
Fiscal 2021: 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., Sumitomo Pharma Oncology, Inc.)
Prior to fiscal 2021: Sumitomo Pharma Co., Ltd. only (not including branches and business offices)
Note 1: The environmental performance indicators marked with have received third-party assurance. The Independent Assurance Report is on "Third-Party Assurance." Please refer to the webpage "Environmental Goals and Performance" for the details of the calculation criteria.
Addressing Water Risks
As concerns about water risks increase worldwide, the Group regularly assesses risks pertaining to current and future water stress, vulnerability of the downstream environment and water disasters at our domestic and overseas production and research sites using databases such as Aqueduct, the water risk assessment tool of the World Resources Institute (WRI), and the Integrated Biodiversity Assessment Tool (IBAT), which measures biodiversity risk. We used the Intergovernmental Panel on Climate Change (IPCC) Representative Concentration Pathways (RCP) 8.5 scenario (the high-level reference scenario) for simulations to predict future river basin water supply volumes. In addition, through interview surveys of staff at our production and research sites and other methods, we have studied water-related problems that have actually occurred at each site in the past as well as future region-specific issues. Based on a comprehensive analysis of these findings, we consider that current water risks at our production and research sites are relatively low.
For water withdrawal from production and some research sites, we are preventing environmental pollution by setting voluntary standards that are even stricter than the environmental standards specified in the Water Pollution Prevention Act.
For water risks and water-related opportunities associated with climate change, conducting detailed analysis and assessments in accordance with the TCFD recommendations, we will pursue specific initiatives to reduce water risks.
Also, as part of our supply chain risk management, we have been carrying out water risk assessments using Aqueduct, starting with raw material manufacturers and contract manufacturers for key products. Going forward, we will deepen communication with our suppliers and other business partners based on the "Sustainable Code of Conduct for Business Partners."
Results of water risk assessment using WRI Aqueduct (Target; our group production and research sites)
Water Stress Assessment (Fiscal 2021)
| Level of water stress | Japan | Overseas | ||
|---|---|---|---|---|
| Number of site | FY2021 water withdrawal (thousand t) |
Number of site | FY2021 water withdrawal (thousand t) |
|
| Low (<10%) | 1 | 299 | 0 | 0 |
| Low - Medium (10-20%) | 5 | 511 | 1 (U.S.) | 0.27 |
| Medium - High (20-40%) | 0 | 0 | 2 (U.S.) | 20 |
| High (40-80%) | 0 | 0 | 1 (China) | 39 |
| Total | 6 | 810 | 4 | 59 |
Risks and Opportunities due to Water-related Problems
| Risk factor | Details | Impact | |
|---|---|---|---|
| Regulatory risks | Restrictions on water withdrawal | Additional expenses to be incurred to secure the various types of water required for our business activities | Increase in capital expenditure and operating costs |
| Strengthening of wastewater standards | Additional expenses to be incurred to bring our wastewater up to the water quality that can be safely discharged | ||
| Physical risks | Increase and intensification of natural disasters (torrential rain, flooding, etc.) | Suspensions and delays in product supply due to damage at facilities (our own facilities and those in the supply chain) involved in our business activities and changes in water supply and demand. There may also be delays in research and development. | Decrease in revenue Loss of business opportunities |
| Reductions in water withdrawal, deterioration in water quality | Additional expenses to be incurred to secure the volume and quality of various types of water required for our business activities | Increase in capital expenditure and operating costs | |
| Reputational risks | External evaluations | Low external evaluations due to lack of water-related activities or information dissemination to lower corporate value | Decline in stock price |
| Opportunity factors | Details | Impact | |
|---|---|---|---|
| Regulatory opportunities | Restrictions on water withdrawal | Realizing effective use of water resources through water recycling and reducing water withdrawal to enable reductions in water-related costs | Reduction in operating costs |
| Physical opportunities | Increased risk of infectious diseases due to deterioration in quality of water resources | Providing existing pharmaceuticals and developing new drugs and vaccines to contribute to preventing and treating infectious diseases | Increase in business opportunities and revenue |
| Reputational opportunities | External evaluations | Achieving reduction in water risks to increase our sustainability and corporate value | Rise in stock price |
Click here (Information disclosure based on TCFD recommendations (Response to climate change)) for information on water risks and water-related opportunities associated with climate change.
Reduction of Waste
To make effective use of limited resources, Sumitomo Pharma continues to actively practice the "3Rs" of waste management (reduce, reuse, recycle) under the Mid- to Long-term Environmental Goals.
In fiscal 2021, we achieved the target of maintaining the final amount of waste disposed of in landfills at less than 1% of the generated amount under the Mid-term Environmental Goals. However, we were unable to achieve the Mid-term Environmental Goals' targets for recycling rates due to the impact of a decrease in the generation of waste oil with a high recycling rate caused by fluctuations in production volume.
Click here (Environment "Environmental Goals and Performance") for details of the progress of the Mid-term Environmental Goals.
Going forward, we will actively pursue recycling through thorough waste separation, conversion of waste into valuable resources and outsourcing to waste disposal companies who are capable of recycling.
In addition, as part of our "efforts to eliminate plastic bottles," we are currently replacing them with environmentally friendly containers and products, including metal bottles and canned beverages, in all of the vending machines we install and manage at our business facilities.
Waste-related indicators
Boundary of calculation: Sumitomo Pharma Co., Ltd. Only (not including branches and business offices)
Compliance with Japanese PCB Law
We sequentially dispose of polychlorinated biphenyls (PCB) waste from equipment such as transformers, capacitors and fluorescent lamp ballasts that use PCBs at each workplace in accordance with the Act on Special Measures concerning Promotion of Proper Treatment of PCB Wastes. All disposal of high concentration PCB waste has been completed.
We will continue to perform proper management and storage of low levels of PCB-containing waste until such time that they can be processed by specialized contractors under the law.
| PCB management status | As of September 2022 |
|---|---|
| Waste containing high levels of PCB in storage | 0 units |
| Waste containing low levels of PCB in storage or in use | 4 units |
Recycling of Product Containers and Packaging Materials
In accordance with the Containers and Packaging Recycling Act, Sumitomo Pharma recycles some of the containers and packaging materials used for our products.
Going forward, we will also fulfill our obligation to recycle containers and packaging, and actively work on reducing the amount of packaging materials used and replacing them with renewable resources.
Product Packaging Material Usage, Outsourced Recycling Amounts* (Fiscal 2020 results)
| Product packaging materials | Usage (t) | Outsourced recycling amount (t) |
|---|---|---|
| Plastic | 367 | 92 |
| Glass | 37 | 13 |
| Paper | 236 | 6 |
Total cost of outsourced recycling: 5,048,000 yen
*Outsourced recycling amounts are calculated based on coefficients for calculating mandatory recycling amounts determined by the Japanese Government.
Reduction of Chemical Substance Emissions
Chemical substances frequently handled in Sumitomo Pharma include toluene, methanol and acetone. These chemical substances are used primarily as solvents and in almost all cases are ultimately disposed of as waste oil or other waste products. We are taking proactive measures to deal with volatile solvents, such as dichloromethane, by installing recovery equipment to prevent leakage into the atmosphere. All of our workplaces subject to reporting under Japanese Act on Confirmation, etc. of Release Amounts of Specific Chemical Substances in the environment and Promotion of Improvements to the Management Thereof (PRTR Law) submitted appropriate reports based on results in fiscal 2021.
Sumitomo Pharma reports properly in accordance with Japan's Water Pollution Control Act and other laws and regulations. We continuously monitor wastewater through routine inspections and other means, while also working to strengthen our monitoring system by formulating measures to prevent pollution caused by toxic substances.
Click here (Environment "Environmental Goals and Performance") for details of the progress of the Mid-term Environmental Goals.
PRTR Substances
VOC Substances
Development of Environmental Conservation Systems
Green Procurement
Pursuant to our Green Procurement Basic Policy, we operate the Sumitomo Pharma's Green Procurement Guidelines of office supplies and other items. We give priority to selecting environmentally friendly products based on the Sumitomo Phama's Green Procurement Guidelines.
In fiscal 2021, the green procurement ratio of office supplies reached 52.9%. We will continue to encourage employees to pursue in green purchasing policies. We promote green procurement further by exploring the possibilities in switching to "green" items.
Green Logistics
We operate Green Logistics Guidelines to make our physical distribution activities more eco-friendly. Our distribution centers and production sites implement various projects toward this objective.
In fiscal 2021, a total of 46 projects were implemented, including Efficient Delivery of Products to be Shipped (Suzuka Plant) and Ship Transportation and Assorted Shipment (Oita Plant).
Green Product Development
The Company has set out Green Product Development Rules and Manuals, and our Technology Research and Development Division and Manufacturing Division promote green product development accordingly.
In fiscal 2021, we implemented 37 initiatives, which included reducing environmental impact by using continuous flow chemistry for manufacturing and applying a high speed method of LC analysis (Technology Research and Development Division), reducing the amount of purified water used for cleaning by reviewing manufacturing conditions, and reducing energy consumption by shortening manufacturing time (Suzuka Plant).
Green Facilities Design
Our Manufacturing Division, research laboratories and Osaka Head Office are engaged in the promotion of green facilities design.
In fiscal 2021, a total of 13 projects were implemented including renewal of pump motors (Suzuka Plant), installing LED lighting, enhancement and renewal of compressed air equipment (Oita Plant).