The Daiichi Sankyo Group is striving to use resources and energy efficiently under the EHS Management Policy(FY2021-FY2021), which states, “Lower the environmental impact of the entire supply chain by conserving energy and resources, and reducing greenhouse gas emissions and waste”. To facilitate responsible corporate activities that address climate change, we have set the goals of reducing CO2emissions in FY2025 by 42% and in FY2030 by 63% compared to FY2015 based on the approach of the Science Based Targets initiative (SBTi)*1, which aims to help accomplish the goal of the Paris Agreement (keeping the average increase in global temperature below 1.5°C compared to pre-industrial revolution levels). At Daiichi Sankyo Chemical Pharma Onahama Plant, we completed construction of a new office building in March 2023 and acquired the Daiichi Sankyo Group’s first “Nearly ZEB*2” certification under the Building-Housing Energy-efficiency Labeling System (BELS)*3. Daiichi Sankyo Pharmaceutical (Shanghai) Co., Ltd. followed the Onahama Plant and Daiichi Sankyo Europe’s Pfaffenhofen Plant in putting its solar power system into operation. In April 2022, we switched to renewable electricity (FIT non-fossil fuel energy certificates with tracking) for the electricity we use in 13 sites in Japan, including our head office, production sites, research laboratories, and training facilities. Moreover, operating sites in Europe and Brazil have reduced CO2 emissions by expanding the use of renewable energy. We are continuing our efforts to further utilize renewable energy at our operating sites globally.

Our CO2 emissions for FY2022 were 109,735 tons (49.6% 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 An international initiative that requires companies to set CO2 reduction targets based on scientific evidence to prevent the global average temperature from increasing (Well Below 2°C and to keep it under 1.5°C) which is the goal of the Paris Agreement.

*2A building that is nearly a Net Zero Energy Building (ZEB: a building in which the net energy consumption (energy consumption minus energy generation) is zero), cutting net energy consumption by 75% or more.

*3Building-Housing Energy-efficiency Labeling System

CO2 Emissions Reduction Targets and Performance

CO2 emissions for FY2022 were 109,735 tons, a 49.6% reduction compared to FY2015. This is 81,664 tons less than the FY2021 performance of 191,399 tons, due primarily to the switchover in Japan to renewable electricity (FIT non-fossil fuel energy certificates with tracking information) (approximately 67,500 tons). By scope, FY2022 performance for the entire Group was 86,006 tons for Scope 1 and 23,729 tons for Scope 2, which were 3.8% and 75.3% lower than in FY2021, respectively. The CO2 emissions for Scope 3 in FY2022 totaled 2,122,492 tons, 9.0% higher than the 1,947,668 tons of FY2021. This was largely due to an increase in purchased goods and services (category 1). Also, the CO2 emission intensity (based on net sales) was 141.5 (t-CO2/billion yen), an improvement of 12.4% from 161.5 in FY2021.

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

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Breakdown of CO2 Emissions (Entire Group)

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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 64,388 2,409 66,797
Outside Japan 21,617 21,320 42,937
Total 86,006 23,729 109,729

CO2 Emissions Reduction Initiatives

Initiatives at plants and research facilities

We 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)

Utilization of Renewable Energy

At Daiichi Sankyo Europe Pfaffenhofen Plant in Germany, which has been converting all purchased electricity to electricity generated from renewable energy since 2014, a self-consumption solar power system (annual energy production of 580 MWh)constructed on the plant’s premises began operation in February 2022. In addition, in January 2023, the Daiichi Sankyo Pharmaceutical (Shanghai) Shanghai Plant began using a solar power plant (with annual energy production of approx. 540 MWh), which is able to cover the annual energy consumption of the plant’s administrative building. This is expected to reduce CO2 emissions by 300 tons per year. In addition, at Daiichi Sankyo Chemical Pharma Onahama Plant, which started operation of the solar power system with annual energy production of approx. 4,000 MWh in December 2020, finished construction of the Daiichi Sankyo Group’s first Nearly ZEB-certified building, its new office, in March 2023. This office generates electricity using solar power and saves energy by effectively combining high-efficiency air conditioning, water heating, and lighting equipment, thereby cutting standard building energy consumption by 78% (51.9% from energy savings and 26.9% from energy generation). From April in FY2022, we are actively promoting the utilization of renewable energy by, for example, switching to renewable energy (FIT non-fossil fuel energy certificates with tracking information) for the electricity we use in 13 sites in Japan, including our head office, production sites, research laboratories, and training facilities.

Daiichi Sankyo Chemical Pharma Onahama Plant New management building

Daiichi Sankyo Pharmaceutical (Shanghai) Shanghai Plant

Daiichi Sankyo Europe Pfaffenhofen Plant

Renewable Energy Usage and Breakdown

Types of Renewable Energy Power Supply (MWh) Remarks
Solar energy generation 4,676 Electricity generated by solar energy equipment installed in plants and research facilities.
Hydroelectric power generation 31,120 Purchased by our Group companies in Germany and France.
Biomass power generation 6,540 Purchased by group companies in Japan. Not subtracted from the amount of emissions in Scope 2.
Other renewable energies 144,658 Purchased by group companies in Spain, the UK, 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 fiscal 2019 and fiscal 2020, respectively.

Supply Chain GHG Emission (Scope 3) (Entire Group)

Sources CO2 emissions
(t-CO2) FY2021
CO2 emissions
(t-CO2) FY2022
Increase/Decrease Rate Compared to the Previous Year (%) Emissions Calculation Methodology
Cat1 : Purchased goods
and services
1,687,965 1,892,504 12.12% The figures are calculated by multiplying the emission basic unit based on guidelines* by the purchase amount.
Cat2 : Capital goods 148,989 161,326 8.28% It computed based on the investment of the fixed assets and CO2 emission coefficients of the guidelines* issued by Ministry of Environment and Ministry of Economy, Trade and Industry.
Cat3 : Fuel-and-energyrelated activities
(not included in Scope 1 or 2)
20,133 24,051 19.46% 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.
Cat4 : Upstream transportation and distribution 29,281 47,270 61.43% In accordance with guidelines*, etc., the figures are calculated with the transportation cost based on the fuel consumption method.
Cat5 : Waste generated in operations 8,147 10,517 29.08% 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.
Cat6 : Business travel 13,329 34,473 158.62% 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.
Cat7 : Employee commuting 9,546 10,624 11.29% 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.
Cat8 : Upstream leased assets
It is irrelevant because all emissions form the leased assets are counted in Scopes 1 and 2.
Cat9 : Downstream transportation and distribution 13,817 14,163 2.51% 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.
Cat10: Processing of sold products
There is no energy use for processing of sold products, because of the characteristic of medical supplies. Therefore, it is estimated irrelevant.
Cat11 : Use of sold products
There is no energy use for product use, because of the characteristic of medical supplies. Therefore, it is estimated irrelevant.
Cat12 : End of life treatment of sold products 2,501 2,747 9.85% 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.
Cat13 : Downstream leased assets 2,913 2,820 △3.19% 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.
Cat14 : Franchises
Since we have no franchise, it is irrelevant.
Cat15 : Investments 6,134 5,485 10.59% CO2 emissions were calculated pro rata based on the Company's shareholding in the shares held.
Total 1,942,756 2,205,979 13.55%  

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.