Biodiversity

SHIONOGI recognizes that biodiversity initiatives are as important as climate change initiatives and promotes measures to address these issues under a common governance structure. We have established an integrated EHS management function that oversees and manages various EHS-related activities; this function is responsible for monitoring the progress of specific measures to address biodiversity risks.

For information on the relationship between the integrated EHS management function and the company-wide risk management system, please refer to the section titled “SHIONOGI Group’s Climate Change Strategies.” 

SHIONOGI has endorsed the Keidanren Declaration of Biodiversity and Action Policy (Revised Edition) and has announced its future policy and specific examples of initiatives through the Keidanren Initiative for Biodiversity Conservation.

Keidanren Initiative for Biodiversity Conservation (External website) 

As a social movement regarding biodiversity, the Kunming-Montreal Biodiversity Framework^*2 was adopted at the 15th Conference of the Parties to the Convention on Biological Diversity (COP15) in December 2022, and the Task Force on Nature-related Financial Disclosures (TNFD)^*3 framework was published in September 2023. In both frameworks, companies are required to identify and assess their dependence and impact on biodiversity, as well as risks and opportunities, and take necessary measures for sustainable consumption (based on the LEAP approach).

 

SHIONOGI analyzes and organizes the connection between its business activities and nature, focusing on direct operations in its pharmaceutical business and the upstream of the supply chain, as well as the impact of these activities on the natural environment and biodiversity; it implements initiatives to reduce these impacts. Based on these results, we will continue to strengthen our efforts to conserve biodiversity.

*2 Kunming-Montreal Biodiversity Framework: A global goal for biodiversity to be achieved by 2030, following the Aichi Biodiversity Targets, a set of global targets by 2020 adopted at COP10.
*3 TNFD: A framework for companies and financial institutions to assess their dependence on natural capital and impact on ecosystems and to provide information to investors and other stakeholders based on their assessment results.

The following diagram summarizes the impact of SHIONOGI’s business activities, centered on pharmaceutical research, development, and manufacturing, on various natural domains, such as the atmosphere, freshwater, and oceans, as well as our initiatives and indicators for reducing the negative impacts on nature.

SHIONOGI has conducted a biodiversity risk assessment in its business activities. Considering the sector materiality information for the Health Care, Pharmaceuticals, and Biotechnology sectors to which SHIONOGI belongs, we analyzed the relationship of dependence and impact on nature using the WWF Biodiversity Risk Filter^*5, a biodiversity risk analysis tool. As a result, “water risk” was identified as a priority biodiversity risk in terms of dependence, and “pollution risk” was identified as a priority biodiversity risk in terms of impact, both of which are deeply related to SHIONOGI’s business activities. Subsequently, we conducted a biodiversity risk assessment focusing on factories and business sites with a significant direct impact on nature and a particularly strong relationship with these two risks.

*5 WWF Biodiversity Risk Filter: A tool provided by the World Wildlife Fund for assessing biodiversity risks.
Biodiversity Risk Filter | World Wildlife Fund (riskfilter.org)(External link)

High-quality water is an essential resource for pharmaceutical research and development and for production in factories. Therefore, depletion of water sources or flooding in the regions where our factories are located can have a significant impact on business continuity. SHIONOGI analyzes “water risks,” such as water stress and the probability of flooding, in the regions where each manufacturing and research site is located, using the global assessment tool “Aqueduct^*6” provided by the World Resources Institute (WRI). The results of these assessments are used to consider risk reduction and preventive measures.

 

Based on past assessment results and accumulated knowledge and experience, the current physical water risk at each SHIONOGI site is low. However, in recent years, record-breaking heavy rains and floods have occurred frequently around the world owing to the effects of climate change, and we recognize the need to assess water risks from a more multifaceted perspective. In the future, through discussions with experts, we will advance water risk assessments that consider the increasing severity of disasters, deepen our understanding of flood risks specific to the river basins where each site is located, and work on identifying issues and considering countermeasures.

 

In addition, we use Aqueduct to evaluate potential water risks when selecting suppliers, thereby reducing risks.

*6 Aqueduct: A tool provided by the WRI for assessing water risks.
 Aqueduct | World Resources Institute (wri.org) (External link)

Waste containing hazardous substances, exhaust gases, and wastewater generated by business activities can pollute the environment and significantly impact human health and ecosystems. Once environmental pollution occurs, it can have serious effects on local communities and biodiversity; restoring the original state takes a great deal of time and cost. SHIONOGI is working company-wide to prevent pollution by ensuring compliance with laws and regulations related to air, water, and soil pollution, and by reliably conducting related assessments. For more information on the prevention of air, water, and soil pollution, or on compliance with related laws and regulations, please refer to the section titled “Pollution Prevention.”

As a company that has provided antimicrobials to society for more than half a century, SHIONOGI is also responsible for managing environmental emissions from the antimicrobial manufacturing process throughout the supply chain. For more information on our initiatives against AMR, please refer to the section titled “AMR.”

 

Through the planning and implementation of these risk reduction measures, we have determined that the “pollution risk” at each manufacturing and research site is being appropriately managed.

 

SHIONOGI recognizes the impact of the consumption of natural resources, emissions into the atmosphere and water, and waste generation associated with its business activities on the global environment. We consider reducing the environmental impact an important issue and are implementing the following initiatives.

 

 

Genetically modified organisms used in research and production activities are appropriately managed in accordance with the Act on the Conservation and Sustainable Use of Biological Diversity through Regulations on the Use of Living Modified Organisms (Cartagena Protocol). Internal regulations in line with the laws and regulations have been established under the responsible committee. Additionally, we provide employee education and strive to prevent the spread or leakage of genetically modified organisms into the environment.

Shionogi Healthcare Co., Ltd., a group company that handles over-the-counter drugs, manufactures and sells health foods containing fucoidan, an ingredient extracted from Gagome kombu (kelp). However, owing to a combination of factors such as an imbalance in the supply and demand of seaweed caused by the recent increase in sea urchins and abalones that feed on seaweed and overfishing resulting from the Gagome kombu boom, natural Gagome kombu, which mainly inhabits the waters near Hakodate, Hokkaido, is facing the crisis of possible extinction in the area.

 

Shionogi Healthcare, a company that handles products using Gagome kombu, has launched the Reforesting Kombu Project to restore natural Gagome kombu to its former state, where it grew thickly like a forest. The project aims to switch the use of Gagome kombu from natural to farmed sources and reduce the use of natural Gagome kombu to zero. Using the “Project for Promoting the Launch of Business Based on Local Community-Company Partnership” subsidized by the Ministry of Economy, Trade, and Industry, we have collaborated with Hakodate City, local universities, and companies to improve the quality of farmed Gagome kombu, establish a stable supply system, and promote its spread, thereby advancing the conservation and restoration of natural Gagome kombu. Since FY2019, we have started using farmed Gagome kombu as a raw material for our products. By the end of FY2024, we completed the switch to farmed kombu for our main product, the Fucoidan PROTECT series.

 

Going forward, in addition to the benefits for biodiversity conservation, we are considering initiatives aimed at contributing to blue carbon^*7 through farmed kelp. By increasing the amount of farmed kelp, which serves as a carbon sink, we will contribute to the realization of a carbon-neutral society and advance multifaceted efforts to preserve the global environment.

In recent years, highly pathogenic avian influenza (HPAI) has been rampant, causing mass deaths not only among poultry such as chickens and ducks raised for human use but also among wild birds and mammals. HPAI poses a major threat to rare bird species at risk of extinction.

 

In 2023, SHIONOGI launched a project to protect rare bird species from HPAI through appropriate influenza drug use. In collaboration with the Hokkaido University One Health Research Center, the Institute for Raptor Biomedicine Japan, and the NPO Animal Hospital Okinawa, we are working to establish a system for the proper use of therapeutic drugs against infectious diseases that threaten biodiversity. We aim to contribute to halting biodiversity loss based on the concept of One Health—which considers the health of humans, animals, ecosystems, and the environment.

Several pharmaceuticals are derived from plants. Plants are important specimens for pharmaceutical research and are used as raw materials for medicines. The Aburahi Botanical Gardens was established in 1947 within the Aburahi Research Center in Koka City, Shiga Prefecture. Initially, it was used to cultivate medicinal plants and search for drug discovery seeds from natural sources. Today, it serves as a facility for promoting environmental initiatives and conducting community and social contribution activities, managing and maintaining over 1,000 species of plants, including rare and endangered species.

At the Aburahi Botanical Gardens, we are involved in the conservation of threatened species and rare plants. We are also conducting ex situ conservation of plants that are in danger of extinction in the area, breeding them at the Gardens, and then returning them to their own habitat.

As part of our social contribution activities for the local community through the Aburahi Botanical Gardens, we invite experts from Kyoto Pharmaceutical University to provide educational support to local elementary school students, who will lead the next generation. We also provide opportunities to learn about the environment by holding garden tours, targeting high school and university students, those enrolled in a university for seniors, and new employees of SHIONOGI.

 

The Aburahi Botanical Gardens cultivate over 1,000 species of plants, including rare and endangered species. However, whether this rich ecosystem had a positive impact on the conservation of species, including endangered species, inhabiting the surrounding satoyama (rural landscapes) remains unclear. Therefore, SHIONOGI is considering the introduction of “environmental DNA monitoring,” an innovative technology that enables noninvasive and highly accurate identification of species by collecting and analyzing DNA fragments derived from organisms in the environment. In collaboration with AdvanSentinel, a company jointly established by Shionogi & Co., Ltd. and Shimadzu Corporation, we are also working on the social implementation of a survey method using our proprietary “QuickConc™” technology, which enables more sensitive detection of environmental DNA. We will continue to collect and analyze environmental DNA and use the knowledge gained for biodiversity conservation activities. For more details, please refer to the section “Efforts to Assess and Conserve Biodiversity through Environmental DNA Monitoring.”

Clean-up activities were conducted around the following operating sites: Shionogi Pharmaceutical Research Center, Shionogi CMC Research Innovation Center, Shionogi Smile Heart, Shionogi Pharma’s Kanegasaki Plant, Settsu Plant, Tokushima Plant, Itami Plant, Akita Plant, and Amagasaki Office. Employees at Shionogi Pharma’s Kanegasaki Plant also volunteer for snow removal during the winter. This activity also serves as a way to check the well-being of elderly people living alone, ensuring that they are in good health.

 

We also participate in various programs, such as the Adopt Road Program run by Osaka Prefecture and the SpoGomi program run by the Social Sports Initiative, which contribute to environmental conservation in the local community.

Moreover, as part of the efforts to contribute to environmental protection activities and biodiversity conservation, Shionogi Pharma and Shionogi Techno Advance Research Co., Ltd., which are our Group companies, collaborate with Suntory Beverage Solution Ltd. to install original vending machines in all their locations. By visualizing the SHIONOGI Group’s Aburahi Botanical Gardens’ initiative “Conservation and Management of Endangered Species and Medicinal Plants” and Shionogi Healthcare’s “Reforesting Kombu Project” on the vending machines, they provide the opportunity for employees to think about environmental conservation at random moments in their daily life, aiming to raise their environmental awareness; they also donate a portion of the vending machine sales to outside environmental protection organizations to resolve social issues.