Sustainability Governance Framework

SHIONOGI positions sustainability-related issues as important management matters and promotes initiatives accordingly, to achieve both sustainable business growth and the sustainability of society.

Based on both their significance to the Company and their impact on society and the global environment, SHIONOGI identifies material issues and related indicators that require priority attention, and advances various initiatives toward sustainable growth and value creation.

Material issues and key management matters are deliberated and resolved by the Corporate Executive Meeting and the Board of Directors. Under the responsibility of the Executive Officers in charge, relevant organizations and committees work collaboratively to promote sustainability initiatives.

For each material issue, key performance indicators (KPIs) are established, and progress against these indicators is reported semiannually to the Corporate Executive Meeting and the Board of Directors, and feedback, including opinions and advice, is incorporated into ongoing initiatives.

The Borad of Directors	・Resolving material issues, indicators, and targets, and overseeing progress ・Resolving other important sustainability-related management matters and overseeing their progress
Corporate Executive Meeting	・Discussing and resolving important sustainability-related management matters, including material issues, and reporting them to the Board of Directors ・Promoting the execution of resolved matters and monitoring progress

The Borad of Directors

・Resolving material issues, indicators, and targets, and overseeing progress

・Resolving other important sustainability-related management matters and overseeing their progress

Corporate Executive Meeting

・Discussing and resolving important sustainability-related management matters, including material issues, and reporting them to the Board of Directors

・Promoting the execution of resolved matters and monitoring progress

Sustainability-related risk management is integrated into the Company’s enterprise-wide risk management framework. Based on assessments of impact and likelihood, risks and opportunities related to sustainability and business activities are identified, and responsibility and risk ownership are clearly assigned for each risk. Action plans are implemented to mitigate risks or leverage uncertainties as opportunities. Progress reviews and risk discussions are conducted quarterly, enabling timely responses to changes in the business environment and continuous reflection in management actions.

Through this governance framework, SHIONOGI fulfills its corporate responsibilities to the economy, society, and the environment, and implements sustainability initiatives in a timely and effective manner in response to changing circumstances.