The EHS Management Policy (FY2021-FY2025) states that we should “ Lower the environmental impact of our operations and supply chain by conserving energy and resources, and reducing greenhouse gas emissions and waste. ” thereby working to use resources and energy more efficiently.

To facilitate responsible corporate activities that address climate change, we have set the goal of reducing carbon dioxide(CO2) emissions in FY2025, the final year of the 5-year Business Plan, by 25% compared to FY2015, in order to achieve our long-term CO2 emissions target of 37.5% reduction (Target well below 2˚C)*1 in FY2030 based on the approach of the Science Based Targets initiative (SBTi)*2, which aims to help accomplish the goal of the Paris Agreement of keeping the average increase in global temperature below 2°C. This CO2 emissions target is certified by SBTi, and Daiichi Sankyo will continue to cooperate with the Ministry of the Environment's SBT promotional activities.

In FY2020, Daiichi Sankyo Chemical Pharma Onahama Plant started operating a solar power system (3.3 megawatts of power output), one of the largest self-consumption solar power systems in the pharmaceutical industry in Japan, in December 2020. The plant has already reduced CO2 emissions by approximately 470 tons in FY2020 and is expected to reduce emissions by around 1,800 tons by the end of the year. The Daiichi Sankyo Europe Pfaffenhofen Plant also a built a solar power system, which is scheduled to go online in October 2021 and is expected to reduce CO2 by approximately 350 tons for the year. Moreover, operating sites in Europe and Brazil have significantly reduced CO2 emissions by expanding the use of renewable energy. We are continuously endeavoring to incorporate renewable energy for overseas operating sites.

Our CO2 emissions for FY2020 were 182,865 tons (19.4% lower than in FY2015). Not limited to our efforts to “mitigate” CO2 emissions and other environmentally hazardous actions, we facilitate initiatives to “adapt” to impacts that have become tangible or influence that is inevitable in the medium to long-term.

*1 Target well below 2˚C: target stricter than 2˚C target set by SBTi in 2019.

*2 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.

CO2 Emissions Reduction Targets and Performance

CO2 emissions for FY2020 were 182,865 tons, below the previous 5-Year Business Plan target of 214,234 tons, a 19.4% reduction compared to FY2015. Improvement of the electricity emissions factor contributed the most, at approximately 12.1%, but measures such as improving efficiency of business processes through streamlining operating sites, making capital investments in highly efficient equipment, and carrying out day-to-day energy-saving activities also had a big impact, accounting for around 7.3%. This is 14,776 tons less than the FY2019 performance of 197,641 tons, but the main factor for this was the drop in production volume and activities (around 9,000 tons), which includes a decrease in MR vehicle travel due to COVID-19 pandemic.
By scope, FY2020 performance for the entire Group was 86,785 tons for Scope 1 and 96,080 tons for Scope 2, which were 6.7% and 8.1% lower than in FY2019, respectively. The CO2 emissions for Scope 3 in FY2020 totaled 753,511 tons, 1.3% higher than in FY2019. Partly due to an increase in capital goods (category 2) from capital investments. Also, the CO2 emission intensity (based on net sales) was 0.190 (t-CO2/million yen), an improvement of 5.6% from 0.201 in FY2019.

CO2 Emissions by Factors for Increase/Decrease (Entire Group)

CO₂Emissions by Factors for Increase/Decrease (Entire Group) graph

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Breakdown of CO2 Emissions (Entire Group)

Breakdown of CO₂ Emissions (Entire Group) grapf

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CO2 Emissions by Scope

Total CO2 Emissions by Region (Scope 1 and Scope 2)

(t-CO2

  SCOPE1 SCOPE2 Total
In Japan 69,103 61,468 130,572
Outside Japan 17,682 34,612 52,294
Total 86,785 96,080 182,865

CO2 Emissions Reduction Initiatives

Initiatives at plants and research facilities

Group companies in Japan and overseas select and install highly efficient energy-saving refrigerators and boilers when upgrading equipment, and implement measures to reduce CO2 emissions such as installing heat insulation on steam piping, improving the efficiency of air conditioning operation, and using natural light by making use of optical ducts.

Initiatives at offices

At office buildings, energy-saving is promoted by installing LED lights and motion detectors throughout buildings.In addition, measures to reduce energy consumed at offices are actively implemented, such as wearing casual business clothing throughout the year, ensuring the lights and air conditioners are turned off in unused meeting rooms, and recommending employees to leave work on time by optimizing schedule management.In respect to employees’ travels between operation sites, efforts are being taken to reduce domestic and international business trips by further improving and utilizing video conference system.

Energy usage

Breakdown of Energy Use (Entire Group)

エネルギー使用量の内訳(グループ全体)のグラフ

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Utilization of Renewable Energy

The self-consumption solar power system built at Daiichi Sankyo Chemical Pharma Onahama Plant began operation in December of FY2020. One of the largest self-consumption photovoltaic solar power systems in the pharmaceutical industry in Japan, the system is expected to supply 3.3 megawatts of power for use in the Plant (estimated annual energy production of approx. 4,155 MWh). In FY2020, it reduced CO2 emissions by around 480 tons, and is expected to reduce CO2 emissions by approximately 1,800 tons per year, which is equivalent to approximately 20% of the Plant’s total annual CO2 emissions.
Additionally, we actively promote the utilization of renewable energies with measures such as installing solar power generation panels and solar heat collection panels at Shinagawa R&D Center and the learning center (NEXUS HAYAMA). Also, the Shinagawa R&D Center continues to purchase 500,000 kWh of green power generated in a bagasse biomass power plant.
Outside Japan, Daiichi Sankyo Europe GmbH and Pfaffenhofen Plant, both located in Germany, built solar power systems which they plan to start operating in October 2021. The systems are expected to reduce CO2 by approximately 350 tons per year.

Daiichi Sankyo Chemical Pharma Onahama Plant

Daiichi Sankyo Europe Pfaffenhofen Plant

The Altkirch Plant in France and Alphaville Plant in Brazil purchase electricity generated with renewable energy.

Renewable Energy Usage and Breakdown

Types of Renewable Energy Power Supply (MWh) Remarks
Solar energy generation 953 Electricity generated by solar energy equipment installed in plants and research facilities.
Hydroelectric power generation 15,047 Purchased by our Group companies in Germany and Brazil.
Biomass power generation 500 Purchased by group companies in Japan. Not subtracted from the amount of emissions in Scope 2.
Biomass heat 1,749 Purchased by our group companies in Germany.
Other renewable energies 542 Purchased by group companies in Spain, Portugal, Austria, Brazil and other countries.

Emissions Trading

The Shinagawa R&D Center and Kasai R&D Center are among the facilities subject to the mandatory emission reduction scheme and the emissions trading system, Tokyo Cap and Trade Program, under the Tokyo Metropolitan Ordinance on Environmental Preservation. Daiichi Sankyo Biotech is also among such facilities under the Saitama prefectural government's global warming countermeasures ordinance. Recognized for their particularly outstanding measures to combat global warming, the Shinagawa R&D Center and Kasai R&D Center were certified as a “near-top-level facility” in FY2019 and FY2020, respectively.
In FY2020, CO2 missions that were generated from business trips associated with environmental auditing and environmental meetings in Japan and abroad, and the environmental managers workshop, among environmental management activities, were offset by carbon credits that we purchased.

Carbon Offset

Offset Amount Project Type Project Number Certification Standards
30t-CO2 Forest conservation in the Amazon region and projects for supporting a sustainable society through agricultural training in Brazil Acre Amazonian Rainforest REDD+ Portfolio, Brazil VCS-CCB

Supply Chain GHG Emission (Scope 3) (Group in Japan)

Sources CO2 emissions
(t-CO2) FY2019
CO2 emissions
(t-CO2) FY2020
Increase/Decrease Rate Compared to the Previous Year (%) Emissions Calculation Methodology Explanation
Purchased goods
and services
612,885 609,954 △0.48% The figures are calculated by multiplying the emission basic unit based on guidelines* by the weight or purchase amount of raw materials, ingredients, and stock goods. Geographic scope is Japan.
Capital goods 46,950 85,081 81.22% It computed based on the amount of money for acquisition of the fixed assets and CO2 emission coefficients of the guidelines* issued by Ministry of Environment and Ministry of Economy, Trade and Industry. Geographic scope is Japan.
Fuel-and-energyrelated activities
(not included in Scope 1 or 2)
11,088 10,501 △5.29% It computed based on the usage of electricity and steam and CO2 emission coefficients of the guidelines* issued by Ministry of Environment and Ministry of Economy, Trade and Industry. Geographic scope is Japan.
Upstream transportation and distribution 8,549 8,548 △0.01% In accordance with guidelines*, etc., the figures are calculated with the transportation distance between the logistics centers of our group and the destinations (pharmaceutical wholesalers, etc.) based on the fuel consumption method. Geographic scope is Japan.
Waste generated in operations 9,532 10,144 6.42% It computed based on the weight of each waste discharged from the plants and R&D center and CO2 emission coefficients of the guidelines* issued by Ministry of Environment and Ministry of Economy, Trade and Industry. Geographic scope is Japan.
Business travel 30,271 6,048 △80.02% It computed based on the travel and accommodation expenses and CO2 emission coefficients of the guidelines* issued by Ministry of Environment and Ministry of Economy, Trade and Industry. For travel expenses, CO2 emission coefficients for aircraft were adopted. Geographic scope is Japan. The amount of emissions on business trips using company vehicles is included in Scope 1.
Employee commuting 3,711 3,776 1.75% The figures are calculated by multiplying the emission basic unit based on guidelines* by the commutation expenses of public transportation systems used by employees. The amount of emissions from the commuter cars of employees is calculated based on the amount of gasoline used. Geographic scope is Japan.
Upstream leased assets It is irrelevant because all emissions form the leased assets are counted in Scopes 1 and 2.
Downstream transportation and distribution 16,227 14,722 △9.27% The emission basic unit of sales at wholesalers is estimated based on the sales of major pharmaceutical wholesalers and the CO2 emissions. The figures are calculated based on the total sales of the pharmaceutical wholesalers and our ratio of the sales volume. Geographic scope is Japan.
Processing of sold products
Use of sold products There is no energy use for product use, because of the characteristic of medical supplies. Therefore, it is estimated irrelevant.
End of life treatment of sold products 1,810 1,824 0.77% It computed based on the weight of each materials for the containers of the sold product and CO2 emission coefficients of the guidelines* issued by Ministry of Environment and Ministry of Economy, Trade and Industry. Geographic scope is Japan. Recycling is included.
Downstream leased assets 2,913 2,913 0.00% It computed based on the floor area according to the purpose of using the rented assets and CO2 emission coefficients of the guidelines* issued by Ministry of Environment and Ministry of Economy, Trade and Industry. Geographic scope is Japan.
Franchises Since we have no franchise, it is irrelevant.
Investments
Total 743,936 753,511 1.29%    

* Basic Guidelines on Accounting for Greenhouse Gas Emissions Throughout the Supply Chain (Ver. 2.6), Policy on Emissions Unit Values for Accounting of Greenhouse Gas Emissions, etc., by Organizations Throughout the Supply Chain (Ver. 2.6), and the Emissions Unit Value Database (Ver. 3.0)

Supplementary Notes

Conversion factors and their sources

Conversion factors of the Accounting and Reporting System under the Act on Promotion of Global Warming Countermeasures are used for the CO2 conversion factor and the energy conversion factor. Regarding countries outside Japan, the factors commonly used in such countries or the factors based on GHG protocol are used.

Emissions not in the calculation

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

GHG emissions from sold products

Any use of sold products will not help reduce GHG emissions.

List of conversion factors in Japan

Energy Source Conversion Factor
Unit Calorific Value CO2 Emission
Electricity General electricity utility (Day time) 9.97 GJ/1,000 kWh Emission coefficients for power utilities (used for calculating greenhouse gas emissions of specified emitters) for FY2019 t-CO2/1,000 kWh
General electricity utility (Night time) 9.28 GJ/1,000 kWh Emission coefficients for power utilities (used for calculating greenhouse gas emissions of specified emitters) for FY2019 t-CO2/1,000 kWh
Other 9.76 GJ/1,000 kWh Emission coefficients for power utilities (used for calculating greenhouse gas emissions of specified emitters) for FY2019 t-CO2/1,000 kWh
A-type heavy oil 39.1 GJ/KL 2.71 t-CO2/KL
Diesel oil 37.7 GJ/KL 2.58 t-CO2/KL
Kerosene 36.7 GJ/KL 2.49 t-CO2/KL
LPG 50.8 GJ/t 3.00 t-CO2/t
City gas (13A) 44.8 GJ/千m3 2.23 t-CO2/1,000m3
LNG 54.6 GJ/t 2.70 t-CO2/t
Gasoline 34.6 GJ/KL 2.32 t-CO2/KL
Steam for industry 1.02 GJ/GJ 0.06 t-CO2/GJ

* Indicates FY2019 results for electricity emissions factor only.

Improving credibility of the environmental performance data

Aiming to improve the credibility of the information disclosed to stakeholders, Daiichi Sankyo receives third-party assurance for its environmental performance data. When aggregating the environmental performance data, we strive to improve the accuracy and credibility of the data disclosed by inputting highly objective data in principle, based on evidence issued by third parties, such as purchasing slips.