Material Issues

<Reason for selection>

Infectious diseases are a global social issue that has a huge impact on people's health and economic activity. There is a major social and medical need for solutions to infectious diseases that are difficult to cure with existing treatments, as well as emerging infectious diseases whose occurrence is difficult to predict. However, currently, there are not many companies working on infectious diseases, and SHIONOGI, which has been working on infectious diseases, believes that it has a great social mission. Through total care for infectious diseases, we will meet the needs of society and achieve sustainable growth.

<Ideal State>

We provide total care to those who need it, not just vaccines and medications, for infectious diseases posing a large threat to society (acute infectious diseases, antimicrobial resistance (AMR), and infectious diseases requiring a long period of treatment.

<Indicators>

・Promote the appropriate use of infectious disease drugs to control antimicrobial resistance (AMR) and other issues

・Growth/sales of drugs for the treatment of infectious diseases

・Realization of a total care platform for infectious diseases, and global expansion and sales of vaccines

・ Initiatives for priority infectious diseases^※1 to prepare for future pandemics

※1  Infectious diseases in which it is necessary to ensure the availability of medical countermeasures (MCM) including pharmaceuticals and medical devices that are of high importance to crises, such as saving lives, controlling epidemics, and maintaining social activities, in public health crisis management.

<Reason for selection>

We believe that there are multiple risk factors present before the onset of serious diseases, which work in a chain reaction like dominoes. We believe that the underlying causes of various diseases are complex, and there is a significant unmet need. SHIONOGI positions these as QOL diseases^※2 that have a high social impact, and will meet the needs of society and achieve sustainable growth by providing healthcare solutions that go beyond pharmaceuticals, as well as working to improve the social environment.

※2  QOL disease areas that SHIONOGI focuses on: hearing loss, sleep disorders, obesity, etc.

<Ideal State>

Toward the realization of a society in which everyone can live a vibrant life true to themselves, we provide solutions to those who need them for QOL diseases that have a high social impact.

<Indeicators>

・Growth/sales of QOL disease drugs

・Realization of a total care platform for QOL diseases, and penetration of DTx into medical care

・Provision of appropriate information and support to children, parents, and workers

<Reason for selection>

SHIONOGI's purpose in existence is to "SHIONOGI strives constantly to supply the best possible medicine (healthcare solutions) to protect the health and wellbeing of the patients we serve." and leveraging our strengths^※3 to create the most appropriate healthcare solutions is the basis of SHIONOGI's value creation. We will continue to strengthen our competitiveness by creating innovative healthcare solutions, with a focus on drug discovery.

※3　Innovation skills, infectious disease know-how, alliances and collaborations, human resources

<Ideal State>

By keeping up with the rapid changes in the external environment and supplementing our internal strengths with the capabilities of external alliance partners with specialized knowledge, we continue to provide world-leading healthcare solutions to challenging unmet needs.

<Indicators>

・Creation of technology/innovation and social implementation

・Number of drugs newly migrated to Phase 2/3

・Number of drugs in Phase 2/3

・Creation of solutions other than pharmaceuticals

<Reason for selection>

We believe that it is SHIONOGI's mission to contribute to the health of people around the world, including in low- and middle-income countries. We will continue to create solutions from a total care perspective and work to provide SHIONOGI's healthcare solutions to people who need them, not only in-house but also in collaboration with various partners.

<Ideal State>

By providing the innovations and related information we create at an appropriate price and in an appropriate manner, we are contributing to the realization of universal health coverage.

<Indicators>

・Provision of products and services to LICs/LMICs

・Strengthening of regional infrastructure and information provision to improve access to healthcare

・Ensuring of access to pharmaceuticals where products have yet to be approved

<Reason for selection>

Quality assurance and safety management are the responsibilities of SHIONOGI, a life-related company. If any problem were to occur, it would be contrary to our corporate philosophy and would pose a risk to the health of patients, significantly damaging SHIONOGI's social value and raison d'être. Going forward, the entire group will continue to work to ensure that we can continue to provide products and services with quality and safety assured.

<Ideal State>

Delivering high-quality SHIONOGI products and services along with peace of mind to society while striving to respond responsibly to ensure credibility and stable supply.

<Indicators>

・Avoidance of customer disadvantages caused by quality issues

・Realization of high-quality and stable supply through the development of continuous manufacturing technology for multiple products and DX

・Zero serious health hazards caused by products and services

<Reason for selection>

As a life-related company, SHIONOGI has a responsibility to steadily supply healthcare solutions, including pharmaceuticals, to patients who need them. Going forward, we will continue to appropriately manage our supply chain, both within our own company and globally.

<Ideal State>

By cooperating with each value chain and business partner, we will build a resilient supply chain, visualize it, reduce potential risks, and ensure stable supply of SHIONOGI products in any situation.

<Indicators>

・Creation of a system to achieve zero product shortages

・Ongoing critical supplier assessments and dialogues

<Reason for selection>

We recognize the importance of respecting the human rights of all stakeholders in the course its business activities. We promote initiatives that are in line with the SHIONOGI Group Human Rights Policy, which was established based on the UN Guiding Principles on Business and Human Rights(UNGPs).

<Ideal State>

We have established a human rights due diligence mechanism and can implement initiatives for respecting human rights in accordance with UNGPs.

<Indicators>

・Continued implementation of human rights due diligence

<Reason for selection>

SHIONOGI's business is based on a healthy global environment, and we believe that reducing the burden on the global environment and local communities caused by our business activities is an important corporate responsibility. Going forward, address each identified environmental material issue more strategically and with a sense of unity as a group.

<Ideal State>

Contribution to a sustainable society through preservation of the global environment

<Indicators>

・Achievement of the SHIONOGI Group EHS Actionargets (Environment)

https://www.shionogi.com/global/en/sustainability/environment/goal.html

<Reason for selection>

The STS2030 Revision aims to transform from a drug discovery-based pharmaceutical company to a HaaS^※4 company and grow globally through business transformation.

It is none other than each employee of the SHIONOGI Group who will realize this growth through Transformation. Going forward, defined as advancing the acquisition and internal integration of new capabilities by multiplying human resource capability (individual strength), DE&I (Diversity, Equity & Inclusion), and engagement to execute the growth scenario.

※4　Healthcare as a Service : Provide a range of healthcare services in line with customer needs, rather than only providing pharmaceuticals.

<Ideal State>

Develop strong individuals who can win in global competition by embodying the SHIONOGI Way, and build an organization that makes the most of its diverse human resources

<Indicators>

・Securing of a competitive and diverse workforce

・Development of global human resources

・Diversification of management personnel

・Achievement of the SHIONOGI Group EHS Action Targets (health and safety)

・Achievement of health and productivity management targets

<Reason for selection>

Prioritizing compliance and contributing to society through fair corporate activities is at the core of SHIONOGI’s corporate philosophy. Understanding and thorough implementation of compliance should be continuously improved, and by instilling this spirit throughout the organization without letting it wither, we aim to strengthen stakeholder trust and further grow and develop SHIONOGI.

<Ideal State>

Earning the trust of stakeholders by fulfilling social responsibilities

<Indicators>

・Monitoring of compliance and promotional activities

<Reason for selection>

In order to realize the basic policy^※5 globally, we recognize the importance of establishing and operating a management system that can quickly and flexibly respond to changes in the business environment and make quick and decisive decisions, and a corporate governance structure that has a supervisory function for management and execution. Going forward, we will continue to fulfill our responsibilities to stakeholders and strive to continuously improve our corporate value.

※5　SHIONOGI strives constantly to supply the best possible medicine (healthcare solutions) to protect the health and wellbeing of the patients we serve

<Ideal State>

Under a transparent and highly viable global governance/risk management system, we respond flexibly to changes in the environment and conduct corporate management that balances SHIONOGI's growth with social sustainability.

<Indicators>

・Evaluation of the effectiveness of the Board of Directors and implementation of continuous improvement measures