Business and CSR Activities Pursuing Sustainable Improvement for Corporate Value

This section explains the Group’s value creation process and the CSR activities the Group is integrating into its business.

Daiichi Sankyo’s Value Creation Process

Daiichi Sankyo receives a variety of requests from society, including providing a stable supply of top-quality pharmaceutical products, addressing unmet medical needs, and improving access to pharmaceuticals. Utilizing company resources such as financial, intellectual, and human capital, and leveraging our unique strengths in Science and Technology, Global Organization & Talent and Presence in Japan, the foundation of Daiichi Sankyo’s value creation process is realized by creating values and delivering those values to the society through business activities that create and deliver innovative pharmaceuticals that revolutionize the SOC*. We also work to integrate addressing issues on sustainability, including societal and environmental issues into our everyday endeavors. These CSR activities also create and deliver values to society. As such, Daiichi Sankyo will continue making efforts to deliver results generated through our value creation process to patients and their families, healthcare professionals, shareholders, investors, business partners, employees and local communities in a balanced manner. We expect this cycle of creating values will contribute to the sustainable improvement of our corporate value.

  • * Standard of Care. Universally applied best treatment practice in today’s medical science

Business and CSR Activities Pursuing Sustainable Improvement for Corporate Value

CSR Management

In this section, we explain Daiichi Sankyo's corporate social responsibility (CSR) activities, which are integrated into its business activities and based on the DAIICHI SANKYO Group Corporate Conduct Charter (see below). Specifically, we have identified CSR issues that need addressing as the Group for social and environmental issues related to sustainability. Of these, we have extracted material CSR issues as "materiality*" based on their importance, and categorized them into six priority areas on which to act. The Company has established and implemented a system to promote CSR management to resolve these CSR issues. We also communicate with our various stakeholders, taking their evaluations of the Group to heart and reflecting these evaluations in CSR activities.

  • * CSR issues deemed important from the viewpoint of an organization's effects on the economy/environment/society and effects toward the organization's mid- to long-term values

The Group conducts activities to contribute to "Goal 3: Ensure healthy lives and promote wellbeing for all at all ages" of the Sustainable Development Goals (SDGs), particularly as a measure towards ever-changing sustainability issues. The SDGs are a set of goals for 2030 to address the key issues facing the world, and have been adopted by the member states of the United Nations. Seventeen goals to be accomplished by 2030 have 169 targets.

List of initiatives related to the Sustainable Development Goals.

The Group's initiatives with regard to the 17 SDGs have been compiled into a list of the Daiichi Sankyo Group's initiatives related to the SDGs.

List of initiatives related to the Sustainable Development Goals.

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 of 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 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 CSR.

•Identifying materiality in CSR activities and classifying their priority areas

Our CSR activities are based on responsible actions expected from pharmaceutical companies and global CSR initiatives such as the United Nations Global Compact (UNGC) from the perspectives of "diverse requirements and expectations of society" and "the relationship to our medium-to-long-term business." The materiality has been identified based on these CSR issues and categorized per activity area.

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  • *1 A voluntary initiative in which companies and organizations demonstrate leadership and act as upstanding members of society by participating in the creation of global frameworks aimed at realizing sustainable growth
  • *2 An international guidance standard aimed at helping companies and other organizations assess and address the social responsibilities relevant to their business

•Issues to Be Addressed as Part of Responsible Corporate Activities

Based on the above CSR issues, we have defined the following six areas of focus for CSR activity domains in the 5-year business plan and are advancing initiatives accordingly.

•CSR Targets (5-Year Business Plan) and its Progress

Issues to Be Addressed as Part of Responsible Corporate Activities

•CSR 6 priority areas for activities, 36 items identified as materiality and examples of initiatives

CSR Targets (5-Year Business Plan) and its Progress

•Initiatives toward Materiality

In April 2018, we established a global "Access to Healthcare Policy" that addresses our goal to unite as a company towards global health. The policy summarizes research and development, pharmaceutical technologies, manufacturing, sales and quality & safety management activities.
We also recognize the importance of promoting CSR in the supply chain, and revised the "Global Procurement Policy," the highest-level policy for procurement, in October 2017, along with revising the "Sustainable Procurement Guideline." The Daiichi Sankyo Group will take appropriate measures toward various sustainability issues including social/environmental issues such as human rights, gender equality, prevention of corruption, environmental preservation and global health.

Promotion of CSR Activities

The Daiichi Sankyo Group is constructing a CSR management cycle based on the global management structure (see page 60) to promote CSR activities that are integrated into business operations.

  1. Extracting CSR issuesIssues are extracted based on expectations and needs identified through various CSR initiatives stakeholder communications or results of the reviews by CSR/ESG evaluation organizations, and these are shared with related divisions and group companies.
  2. Prioritizing issuesIssues that need to address are based on business strategies and requests from stakeholders, etc.
  3. Appropriate responses to priority issuesCooperation with related divisions and group companies to promote issues that should be prioritized.
  4. Stakeholder communicationWe conduct self-assessment through stakeholder communication such as reviews by CSR/ESG evaluation organizations and disclosure of responses regarding priority issues.

Progress on measures taken on issues is shared with senior management when necessary, and senior management makes decisions related to important issues. These activities are continuously implemented to improve CSR/ESG external evaluation.

The CSR management cycle

CSR Targets (5-Year Business Plan) and its Progress

The clarification of decision-making procedures when establishing a promotion system for CSR management is pivotal in terms of corporate governance.
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. Specifically, for the decision-making of important matters related to CSR needed for corporate management, they are reported to and discussed by the Management Executive Meeting, with relevant committees providing advisories and recommendations.

The chairperson and members of each of the three committees described above are as of April 1, 2018.
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.