Under the corporate mission “to contribute to the enrichment of quality of life around the world through the creation of innovative pharmaceuticals, and through the provision of pharmaceuticals addressing diverse medical needs,” the Daiichi Sankyo Group will deliver value to society and stakeholders through its business operations, while working on the Group’s further growth and advancement. In fiscal 2019, the Group identified the following as high-priority issues in our business operations: materiality on business, such as creation of innovative pharmaceuticals; and materiality on business foundations, including governance and environmental management.
Eight Material Issues for Value Creation
Creating innovative pharmaceuticals, the basis of our value creation, is our top material Issue. Providing a stable supply of top-quality pharmaceutical products, providing the highest quality medical information, and improving access to healthcare are important for delivering pharmaceuticals created through research and development to our patients. To reinforce the foundation of sustainable management, we will promote compliance management, strengthen corporate governance, and promote environmental management, as material issues on business foundations. In addition, we will also continue to promote the success and development of a diverse range of human resources who can bring competitive advantages to the Group’s business operations.
Materiality Identification Process
In identifying and sorting material issues, 36 issues were selected from the CSR perspective in fiscal 2015, and these were narrowed down to 21 in fiscal 2018. In fiscal 2019, business and governance perspectives were added to the CSR perspective, and medium-to-long-term initiatives and challenges were extracted in light of their importance based on their impact on the Group’s medium-to-long-term corporate value, and expectations from society, including our various stakeholders. Then we prepared a proposal for materiality through discussions with stakeholders. The eight material issues were subsequently identified after two meetings of the Board of Directors.
Materiality Management Cycle
We will set goals for each material issue identified and advance specific initiatives. For effective evaluation and analysis, KPIs＊ will be set, and the progress and achievement of initiatives will be evaluated. In evaluating and analyzing the initiatives, we will consider perspectives from both inside and outside the Group through constructive discussions with various stakeholders, while assessing risks and business opportunities to extract new issues.
We will evaluate the progress and achievement of initiatives each year and check whether we should conduct materiality assessment.
＊ Key Performance Indicators
Long-term targets and KPIs for the eight material issues
Daiichi Sankyo board of directors approved long-term targets for each material issue and KPIs in conjunction with the 5-year Business Plan (FY2021-FY2025) disclosed in April 2021. These KPIs are indicators of progress toward challenge of realizing materiality. Going forward, we will monitor and manage the progress of our activities by utilizing KPIs, and communicate with our internal and external stakeholders constructively. This will enable us to make our activities more meaningful in line with the long-term targets for each material issue.
We arranged several web meetings with investors to have dialogues focusing on our sustainability initiatives including Materiality, after the publication of the Value Report in September 2020. In addition, our management had an opportunity to exchange opinions on the Value Report with investors through the online small meeting hosted by CREDIT SUISSE SECURITIES (JAPAN) LIMITED in January 2021. The opinions received through these dialogues were referred to the identification of the Materiality KPI, which was disclosed in April 2021. We will continue to take a variety of opportunities and to have dialogues with stakeholders.
Materiality on business
*1 Standard of Care: Best and widely used treatment by current medical knowledge
Materiality on business foundations
The 2025 targets are established for the Group in order to further promote initiatives based on the current status.The current status is reported in the detailed section for each materiality (except for indicators for new initiatives).
*2 Scope1：Direct emissions from the reporting company's factories, offices, vehicles, etc.
Scope2 : Indirect energy-derived emissions from electric power and other energy consumed by the reporting company
Scope3：Indirect emissions other than Scope1 and Scope2. Category 1 is emissions from activities up to manufacturing of raw materials, parts and containers / packaging materials
*3 Equivalent to Division Head / Vice President or higher position