The Fourth Medium-Term Environmental Management Policy states that we should “lower the environmental impact of all operations by conserving energy and resources, or 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 CO2 emissions in fiscal 2020, the final year of the 5-year business plan, by 5.6% compared to fiscal 2015, in order to achieve our long-term CO2 emissions target of 37.5% reduction in fiscal 2030 based on the approach of the Science Based Targets initiative (SBTi)*1, 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 fiscal 2019, the “Energy-saving Diagnosis” of the Energy Conservation Center, Japan was conducted at Daiichi Sankyo Biotech with follow-up deliberations on the evaluations of energy use and suggestions for improvement, based on which we are working to improve the efficiency of energy use. The Daiichi Sankyo Chemical Pharma Onahama Plant has been working to reduce CO2 emissions and has decided to install a solar photovoltaic system (3.3 megawatts of power output), which will be one of the largest self-consumption photovoltaic systems in the pharmaceutical industry in Japan.

Moreover, operating sites in Europe and Brazil have significantly reduced CO2 emissions by expanding the use of renewable energy. For example, the Daiichi Sankyo Europe Pfaffenhofen Plant has also installed photovoltaics. We are continuously endeavoring to incorporate renewable energy for overseas operating sites. Our CO2 emissions for fiscal 2019 were 207,035 t (16.3% lower than in fiscal 2015). 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* 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.

CO2Emissions Reduction Targets and Performance

The CO2 emissions of the domestic Group companies in fiscal 2019 were 152,486 tons, lower than the target of 154,760 tons. Compared to fiscal 2018, emissions were 2.5% lower.

The CO2 emissions for the entire Group totaled 207,035 tons, 3.5% lower than in fiscal 2018.

By scope, the fiscal 2019 results for the entire Group were 100,411 tons for Scope 1 and 106,624 tons for Scope 2, which were 0.1% and 6.0% lower than in fiscal 2018, respectively.

The CO2 emissions for Scope 3 in fiscal 2019 totaled 743,936 tons, 6.9% higher than in fiscal 2018. This is attributable to the mainly impact from increase in Category 1 due to the rise in product purchases.

The CO2 emission intensity (based on net sales) for the domestic Group companies and the entire Group were 0240.and 0.211 (t-CO2/million yen), an improvement of 9.6 % and 8.7% from fiscal 2018, respectively.

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CO2 Emissions by Scope (FY2019)

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CO2 Emissions Reduction Initiatives

Initiatives at plants and research facilities

Group companies in Japan and overseas implemented measures to reduce CO2 emissions such as introducing highly efficient and energy-saving refrigerators and boilers, installing heat insulation on steam piping, improving the efficiency of air conditioning operation, and use of natural light by using 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.

Initiatives in sales activities

Hybrid vehicles and other low-carbon vehicles are being introduced for sales activities, and they consist 74.0% of the vehicles used as of the end of fiscal 2019. Excluding the 4WD vehicles used in cold areas, which are outside the scope of this measure, the ratio of low-carbon vehicles used is almost 100%. We also conducted activities to improve fuel efficiency, such as promoting eco-driving, optimizing tire air pressure, and unloading unnecessary luggage in vehicles. In addition, we began introducing telematics (on-vehicle information terminals) at all branches in fiscal 2016, which have led to promotion of eco-friendly driving and improvement in fuel efficiency.

These initiatives reduced the CO2 emissions from sales vehicles for domestic Group companies in fiscal 2019 to 5,617 tons, 6.2% lower than in fiscal 2018. The overseas Group companies are also actively introducing fuel-efficient vehicles to reduce CO2 emissions.

Energy usage

Utilization of Renewable Energy

The Daiichi Sankyo Chemical Pharma Onahama Plant has decided to install a self-consumption solar photovoltaic system, which is to be completed and put into operation by the end of fiscal 2020. This will be one of the largest self-consumption photovoltaic 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). The use of renewable energy from sunlight 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.

In addition, 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). In addition, 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 in Germany, and Alphaville Plant in Brazil purchased green electricity in an amount equivalent to their power usage.

The Pfaffenhofen Plant also introduced a photovoltaic system and a heat supply generated with biochips.

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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. The Kasai R&D Center and the Shinagawa R&D Center were certified as a “near-top-level facility” in fiscal 2015 and fiscal 2019, respectively.

In fiscal 2019, CO2 emissions 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 Initiatives

Carbon Offset Initiatives

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Supply Chain GHG Emissions (Scope 3) for the Group in Japan

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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.

Carbon Offset

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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. 

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 evidences issued by third parties, such as purchasing slips.