The Daiichi Sankyo Group of companies identified eight material issues to be addressed to sustain growth in FY2019, based on the impact on the Group’s medium-to-long-term corporate value enhancement and expectations from society. In FY2020, we set Materiality key performance indicators (KPIs) based on the material issues sorted into two groups: materiality on business and materiality on business foundations.

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 our patients pharmaceuticals created through research and development. 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.

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Materiality Identification Process and KPIs* Setting Process

In identifying and sorting material issues, 36 issues were selected from the corporate social responsibility (CSR) perspective in fiscal year (FY) 2015, and were narrowed down to 21 in FY2018. In FY2019, business and governance perspectives were added to the CSR perspective, and medium-to-long-term initiatives and challenges were extracted based on their impact on the Group’s medium-to-long-term corporate value and expectations from society and stakeholders. We prepared a proposal for materiality through discussions with stakeholders, and eight material issues were subsequently identified after review by the Board of Directors.
In FY2020, discussions were held on the setting of "KPI"*1, as indicators for initiatives for each Material issue linked to the 5-year business plan. The KPIs were approved at the meeting of the Board of Directors in March 2021 after several discussions among the members of the Board of Directors in addition to discussions at the Executive Management Committee of the Group. In conjunction with the current 5-year business plan disclosed in April 2021, we announced the long-term targets for each Material issue and the challenges in resolving material issues along with the KPIs.
＊ Key Performance Indicators

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Materiality Management Cycle

Materiality management is promoted under a materiality management system in which the Company’s Corporate Planning Department and the Sustainability Promotion Department serve as the administrative office. In response to changes in the social environment applicable to setting KPIs, the necessity of adding new material issues or making a change to existing material issues was also discussed among the members of the Board of Directors in light of factors including the impact of COVID-19 on society. In FY2024, the progress and evolution of the materiality were reported and discussed twice at the Board of Directors and Executive Management Committee, and the materiality and KPIs for FY2025 were determined.

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Contribution to SDGs through Materiality Initiatives

We recognize that the social value created through our Materiality initiatives will be from the Group’s contribution to United Nations (UN) Sustainable Development Goals (SDGs).
We have organized an outline of the social significance of the Group’s initiatives in terms of Purpose, Vision, and Materiality, and summarized our progress in achieving our Purpose (creation of social value) in the below chart. Furthermore, we organized the social value that our Group is creating from the perspective of the UN SDGs. For example, “to contribute to the enrichment of quality of life around the world” to which society has high expectations and to which we can best contribute, is linked to UN SDGs Goal 3, “Ensure healthy lives and promote well-being for all at all ages.” We will also contribute to the achievement of Goals 9, 12, and 17 of the UN SDGs to realize our Purpose. In addition, to promote environmental management, we are endeavoring to meet the growing societal demand for “contribution to environmental load reduction”.
Furthermore, through our Materiality of “promoting compliance management” and “corporate governance aimed at fulfilling our mission”, we strive to realize highly transparent management along with promotion and development of talent so that each and every employee can find their work rewarding, solidifying our commitment to respect for human rights and thereby contributing to our achievement of Goals 5, 8, 10, and 16 of the UN SDGs.
In light of the external environment surrounding our Group, we are working to promote a deeper understanding of the SDGs within the Group companies, therefore each and every employee will be encouraged to take ownership in contributing to the SDGs as part of a company-wide effort to create social value. We will continue to work together as a Group to solve social issues not only by growing as a business, but also through creating new value.

 

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