Business and CSR Activities Pursuing Sustainable Improvement for Corporate Value

This section explains the Group’s vision for sustainable improvement for corporate value, together with an overview of efforts of the Group to promote the integrated advancement of business activities and CSR activities.

Sustainable Improvement for Corporate Value

The raison d’être of a pharmaceutical company lies in addressing diverse medical needs around the world and helping patients through the creation of pharmaceuticals, a principle that rests at the core of our business. For a pharmaceutical company, the creation and ongoing improvement of corporate value is based on the sustainable development of an economic value cycle through its business activities. In this cycle, we create and supply pharmaceuticals with social value and receive economic rewards based on that value. The rewards gained are delivered to shareholders and other stakeholders and used for making investments for further drug discoveries.
Continuing to build upon this economic value cycle is the means through which we create value as a pharmaceutical company and also the basis for the sustainable improvement for corporate value. Furthermore, from among social, environment, and other sustainability issues, we have identified those issues that are important for us to address and organized these into six domains on which we will concentrate CSR activities.
Actual activities are based on international CSR initiatives, such as the United Nations Global Compact,*1 ISO 26000*2 and the Sustainable Development Goals,*3 as well as the type of responsible activities our stakeholders expect of us. Furthermore, we incorporate the requests and expectations of society as well as considerations of the relationship between issues and our medium-to-long-term business development into the CSR activities in order to contribute to the realization of a sustainable society. We believe that engaging in such activities will not only help create social and environmental value but also prevent damage to our corporate value from a risk management standpoint.
We feel that both business activities and CSR activities are indispensable, and we conduct these activities in an integrated manner in order to create sustainable improvements in our corporate value.

The Daiichi Sankyo Group’s initiatives for contributing to the accomplishment of each of the 17 sustainable Development Goals have been compiled in the list of initiatives related to the Sustainable Development Goals.

  • *1. A voluntary initiative in which companies and organizations demonstrate responsible and creative leadership and act as upstanding members of society by participating in the creation of global frameworks aimed at realizing sustainable growth
  • *2. International guidance standard not aimed at providing third-party verification of the social responsibility of companies and other organizations
  • *3. Development goals adopted by United Nations menber nations in relation to issues needing to be addressed on a global scale.

Sustainable Improvement for Corporate Value

CSR Management

We endeavor to conduct CSR activities that are integrated into our business activities and that are based on the Daiichi Sankyo Group Corporate Conduct Charter. In order to facilitate our commitment to social, environmental and other sustainability issues, we have identified and organized CSR issues into six domains on which CSR management will concentrate its resources. Actual activities are promoted through a system of committees with cross-organizational membership. We will also engage in active communication with our various stakeholders, taking their evaluations of the Group to heart and reflecting these evaluations in CSR activities.

The Daiichi Sankyo Group’s CSR Activities

・CSR Activities Based on the Daiichi Sankyo Group Corporate Conduct Charter

Based on the Daiichi Sankyo Group Corporate Conduct Charter, we are conducting CSR activities as part of all our corporate activities. The Daiichi Sankyo Group Corporate Conduct Charter defines principles to be practiced in all of the Company’s activities in order to fulfill its corporate mission. Taking each of these principles very seriously, and complying with legal regulations and rules, we act with the highest ethical standards and good social conscience appropriate for a company engaged in a business that affects human lives. Through this commitment, we strive to meet the diverse requirements and expectations of society to improve corporate value and thereby fulfill our Corporate Social Responsibility (CSR).

・CSR Activities for Addressing Diverse and Changing Sustainability Issues

We must respond to a diverse range of sustainability issues, including those related to human rights, gender equality, corruption prevention, environmental preservation and global health. In responding to sustainability needs, we have clarified the CSR issues that the Group will focus on based on their medium-to-long-term relationship with our business and arranged these into six domains for CSR activities (see steps 1 and 2 below).

step1,2

・Concentration of Responsible Corporate Activities

We have defined six domains on which we will concentrate responsible corporate activities based on the United Nations Global Compact and other international CSR initiatives as well as the responsibilities we are expected to fulfill as a pharmaceutical company. Moreover, these domains were selected in consideration of requests and expectations from society and their relation to medium- and long-term business activities.

Concentration of Responsible Corporate Activities (Materiality)

・Issues to Be Addressed as Part of Responsible Corporate Activities

Issues to Be Addressed as Part of Responsible Corporate Activities

Based on the above CSR issues, we have defined the following five areas of focus for CSR activity domains in the fourth mid-term business plan.

・CSR Targets (5-Year Business Plan)

CSR Targets (5-Year Business Plan)

Promotion of CSR Activities

Initiatives related to compliance management, environmental management and social contribution activities are promoted by specific committees set up for each area (Corporate Ethics Committee, Environmental Management Committee, and Social Contributions Committee). Relevant Company divisions serve as the secretariat for each of these committees, which are membered by individuals from across the organization. In addition, important matters related to CSR are reported to and discussed by the Management Executive Meeting.

The CSR Department works to identify sustainability issues and, based on the global management structure, collaborates with relevant divisions to support and promote the Group’s CSR activities.

External CSR and ESG Evaluations and CSR Communication

・Inclusion in SRI Indexes in Reflection of External CSR and ESG Evaluations

We pursue ongoing improvements in corporate value by integrating our CSR activities for addressing sustainability issues into our business activities. These efforts have been highly evaluated, resulting in the Company being included in four socially responsible investment (SRI) : Dow Jones Sustainability Indices (DJSI), FTSE4Good Global Index, and Morningstar Socially Responsible Investment Index. Overviews of each index and the status of the Company’s inclusion are as follows (as of March 31, 2017).

Dow Jones Indices

The DJSI is managed cooperatively by S&P Dow Jones Indices LLC, of the United States, and RobecoSAM AG, of Switzerland. This SRI index evaluates the sustainability of a company from the perspectives of economic, environmental, and social factors and provides important criterion for the selection of investment targets by investors. The Company has been included in DJSI Asia Pacific for seven consecutive years.

FTSE4Good

The FTSE4Good Index is created by FTSE Russell, a part of London Stock Exchange Group plc. The FTSE4Good index is designed to measure the performance of companies demonstrating strong
Environmental, Social, and Governance (ESG) practices. The FTSE4Good indices are used by a wide variety of market participants to create and assess responsible investment funds and other products. The Company has been included in the FTSE4Good Index for eight consecutive years.

MS-SRI

Morningstar Japan K.K. selects 150 companies each year for inclusion in the Morningstar Socially
Responsible Investment Index. Chosen from among Japanese listed companies, this index includes those companies that have been assessed from the perspectives of governance, environmental, social and human resources development. The Company has been included in this index for eight consecutive years.

・CSR Communication

We engage in active communication with the institutions supporting CSR initiatives, SRI investigation firms, institutional investors that emphasize CSR and ESG, and CSR experts. In addition to explaining the Group’s CSR activities (see the“ CSR Issues and Initiatives” table below), we use such communications as an opportunity to understand requests and expectations of our various stakeholders for the Group to keep them current and to reflect this understanding in CSR activities.

・CSR Issues and Initiatives

Integration of business Activities and CSR Activities

We introduce activities conducted in our six domains that have been integrated into our business activities in line with action policies.