Efforts for Saving Energy and Combatting Global Warming

The Fourth Medium-Term Environmental Management Policy states that we should “Lower the environmental impact of all operations by conserving energy and resources, or reducing greenhouse gas emissions and waste.” Acting in accordance with this policy, we are working to use resources and energy more efficiently.
To facilitate responsible corporate activities that address climate change, we have set a CO2 emission target for fiscal 2020, the final year of the 5-year business plan, of pursuing a 5.6% reduction from fiscal 2015 based on our long-term CO2 emission target for fiscal 2030 and the approach of the Science Based Targets (SBT) initiative,*1 which aims to help accomplish the goal of the Paris Agreement of keeping the average increase in global temperature below 2°C. This target led to Daiichi Sankyo being the second Japanese company certified by SBT, and the Company’s SBT-minded initiatives are used as an example by the Ministry of the Environment as it attempts to promote the activities of SBT.
In fiscal 2016, we achieved a reduction of 4.0% in CO2 emissions in comparison to fiscal 2015.
Possible climate change impacts include tightened controls on CO2 emissions in accordance with the international framework for greenhouse gas emissions reduction, physical effects such as a rise in average temperature, drought, flood, change in disease structure, and health impacts. The Medium-Term Environmental Management Policy of the Group includes “Manage the external risks that have the potential to generate a change in business operations, such as climate change and water risks.” By doing so, we facilitate the efforts not only to mitigate the emissions of CO2 and other substances, but also to adapt to climate change-driven impacts as well as influences that are inevitable in the medium- and long-term.
Daiichi Sankyo has developed an energy management system that entails setting energy consumption and other targets for all Group operating sites, including those overseas, monitoring progress toward these targets, and conducting periodic audits. This system has earned external recognition, resulting in the Company receiving the FY2016 Kanto Bureau of Economy, Trade and Industry Director-General’s Award for Excellence in Plant Energy Management

  • *1 An international initiative that encourages companies to set CO2 reduction targets based on scientific evidence in order to help accomplish the goal of the Paris Agreement of keeping the average increase in global temperature below 2°C

【External Voice】Improvement of Information Disclosure Reliability through Third-Party Verification

Yuji TakeuchiYuji Takeuchi
Certification
and Business
Enhancement
Business
Manager
SGS Japan Inc.

In 2015, the Government Pension Investment Fund became a signatory to the Principles for Responsible Investment, indicating a rise in interest in investment that is mindful of ESG concerns in Japan.
In conjunction with this trend, companies are increasingly being expected to disclose non-financial information and to ensure the transparency and accuracy of this information.
SGS Japan Inc. provides services for verifying the accuracy of information disclosed by companies from an independent, third-party perspective. For companies, these services enable them to increase the reliability and transparency of the information they disclose by receiving verification.
The Daiichi Sankyo Group has been receiving third-party verification for its CO2 emissions data since fiscal 2015 with the aim of improving transparency and better fulfilling its responsibility to society. Beginning with fiscal 2016, the Group will be receiving verification for a greater number of items and a wider range of locations. I see this move as demonstrating the Daiichi Sankyo Group’s integrity in its quest to respond to society’s expectations by improving the reliability of the information it discloses.
I hope that the Group will continue to exercise high levels of ethics and improve transparency, further expanding the scope of verification in order to ensure even greater degrees of reliability in the information it discloses.

CO2 emissions reduction targets and performance

CO2 emissions from the Group in Japan in fiscal 2016 amounted to 176,732 metric tons, which was lower than the target level of 184,230 metric tons. Compared with the level from fiscal 2015, there was a 1.1% decrease.
CO2 emissions from the entire Group amounted to 241,274 metric tons, a 2.4% decrease compared with fiscal 2015.
By Scope category, the emissions from the entire Group for Scope 1 and Scope 2 in fiscal 2016 were 115,474 and 125,799 metric tons, which represented a 3.1% decrease and a 1.8% decrease, respectively, compared with fiscal 2015.
As for Scope 3, CO2 emissions from the Group in Japan in fiscal 2016 were 630,996 metric tons, down 1.5% compared with fiscal 2015.
Furthermore, CO2 emissions per basic unit of revenue for Group companies in Japan and for the entire Group were 0.297 and 0.253 (t-CO2/million yen), which means a 3.3% and a 0.8% reduction, respectively, compared with fiscal 2015.

CO<sub>2</sub> emissions reduction targets and performance

CO<sub>2</sub> emissions reduction targets and performance

CO<sub>2</sub> emissions reduction targets and performance

CO2 Emissions by Scope

CO<sub>2</sub> Emissions by Scope

CO2 emissions reduction initiatives

Efforts at plants and research centers

Group companies both inside and outside of Japan made efforts to reduce CO2 emissions by introducing highly energy-saving, highly efficient refrigerators and boilers; performing heat insulation work on steam piping; practicing more efficient operation of air-conditioning; and using sunlight with a daylighting system.
As part of the environmental awards program sponsored by Shinagawa-ku, Tokyo, the Shinagawa R&D Center received the Corporate Award in the Shinagawa Ward Environmental Conservation Activity Awards out of recognition of its energy conservation measures and its efforts to reduce CO2 emissions based on Tokyo ordinances.

Efforts in offices

We promote efforts to save energy in office buildings. For example, we adopt LED lighting in all buildings and introduce human sensors.
In addition, we are actively promoting energy reduction in the office with continued efforts, including all-year casual wearing, thorough switching-off of the illumination and air conditioning in unused meeting rooms, and recommendation to leave work on time by appropriately managing schedule.
With respect to traveling between offices by employees, we are making efforts to reduce business trips in Japan and to foreign counties by enhancing and further utilizing teleconference systems.

Efforts in business operation

We are introducing hybrid vehicles for use in sales activities. The ratio of hybrid vehicles to total vehicles was 71.3% on March 31, 2017. This ratio was 99% when excluding the 4WD vehicles used in cold areas where we will not be switching to hybrid vehicles. Furthermore, we are continuing activities for improving fuel efficiency, including promoting environment-friendly driving practices, maintaining appropriate tire pressure, and eliminating unnecessary equipment from vehicles. In addition to these activities, the telematics systems installed on a trial basis in fiscal 2015 were introduced at all branches in fiscal 2016 to further promote environment-friendly driving practices.
As a result of these efforts, CO2 emissions from vehicles used in sales activities by Group companies in Japan in fiscal 2016 amounted to 6,238 metric tons, a 8.4% reduction compared with fiscal 2015. We are also adopting fuel-efficient vehicles at Group companies outside of Japan and working to reduce CO2 emissions.

Energy usage

Energy usage

Energy usage

Utilization of Renewable Energy

Solar energy generation panels and solar heat collecting panels are being installed at the Shinagawa R&D Center and our learning center (NEXUS HAYAMA) to promote the use of renewable energy. In addition, the Shinagawa R&D Center in Japan continues to purchase green power (500,000 kWh) generated by a bagasse biomass power plant.
As for Group companies outside of Japan, Daiichi Sankyo Europe GmbH and the Pfaffenhofen Plant, both in Germany, as well as Daiichi Sankyo Altkirch Sarl, in France, purchase green electricity in an amount equivalent to their power usage.
The Pfaffenhofen Plant is also introducing heat supplies generated with biochips.

Utilization of Renewable Energy

Emissions Trading

The Shinagawa R&D Center and the Kasai Research and Development Center are among the facilities subject to the mandatory emission reduction scheme and the emission trading system under the Tokyo Metropolitan Ordinance on Environmental Preservation. In addition, Kitasato Daiichi Sankyo Vaccine Co., Ltd., is subject to similar systems under the Saitama Prefecture Global Warming Strategy Promoting Ordinance. Furthermore, the Kasai Research and Development Center was certified as a “near-top-level facility” in fiscal 2015 and the Shinagawa R&D Center was certified as a “top-level facility,” the first research facility to achieve this status, in fiscal 2014.
In fiscal 2016, the CO2 emissions that were generated due to business trips associated with environmental auditing and environmental meetings in Japan and abroad and the environmental managers workshop, all part of our environmental management activities, were offset by carbon credits that we purchased.

Carbon Offset Initiatives

Carbon Offset Initiatives

Supply Chain GHG Emissions (Scope 3) for the Group in Japan

Supply Chain GHG Emissions (Scope 3) for the Group in Japan

Supplementary Notes

Conversion factors and their sources

The conversion factors used in this data book are as follows:
The conversion factors of the Accounting and Reporting System under the Act on Promotion of Global Warming Countermeasures (the Global Warming Countermeasures Act) are used for the CO2 conversion factor and the energy conversion factor.
For countries other than Japan, the factors commonly used in such countries or the factors of the Greenhouse Gas Protocol are used in this data book.

Carbon Offset

Greenhouse emissions from sold products

Any use of sold products will not help reduce greenhouse gas emissions.

Emissions not subject to accounting

The emission data does not include emissions in Scope 1 or Scope 2 from small offices outside Japan, and it also does not include emissions of greenhouse gases other than CO2, as they are small in quantity.

External verification

An external examining organization conducted inspections covering the Daiichi Sankyo Group’s production and nonproduction sites in Japan and two production sites overseas. We received verification on GHG emissions for Scopes 1 and 2 (direct CO2 emissions from energy use and indirect CO2 emissions from waste incineration at sites in Japan and overseas) and Scope 3 (Category 1: raw materials and goods purchased by Daiichi Sankyo Co., Ltd. And Daiichi Sankyo Healthcare Co., Ltd.) on water use and water discharge for 12 sites in Japan and overseas and on waste and water quality (BOD, COD) for 10 sites in Japan. (Verification period: April 1, 2016 to March 31, 2017)

Improving Environmental Performance Data Reliability

Aiming to improve the reliability of the information it discloses to stakeholders, Daiichi Sankyo receives third-party verification for its environmental performance data.
In fiscal 2016, we expanded the scope of data for which this verification is sought to additionally include data on CO2 emissions, water use, and wastewater emissions at two plants in China. In Japan, third-party verification is received for waste discharge as well as for biochemical oxygen demand (BOD) and chemical oxygen demand (COD), both of which are indicators of water pollution, of emissions into public water areas from production and research facilities. Through these efforts, we strive to improve the reliability of environmental performance data.
In collecting environmental performance data, we make a policy of inputting highly objective data based on documented evidence, such as purchase vouchers, issued by third-parties. This precaution is meant to improve the accuracy of disclosed data.

third-party review

third-party review

third-party review

third-party review

third-party review