Editorial Policy

Periods

The present Environment Report covers results achieved during the period of the ﬁscal year 2022 (from April 1, 2022 through March 31, 2023) in Japan and the calendar year 2022 (from January 1 through December 31, 2022) outside Japan. The report also covers our activities conducted immediately before or after these periods.

Organizations Covered

The report covers the environmental activities of Shionogi & Co., Ltd. and the SHIONOGI Group companies in the table below. Sections of the report that concern a different set of organizations are clearly indicated as such in each instance.

Category	Company / Operating site
Shionogi & Co., Ltd.	Head Ofﬁce	Shionogi CMC Research Innovation Center (Hyogo Prefecture)
	Tokyo Branch Ofﬁce (Tokyo)	Shionogi Pharmaceutical Research Center (SPRC)
	Pharmaceutical Commercial Division (including its sales ofﬁces across Japan)	Aburahi Research Center (Shiga Prefecture)
Group companies	Shionogi Healthcare Co., Ltd.
	Shionogi Pharma Co., Ltd. Settsu Plant, Kanegasaki Plant (Iwate Prefecture), Tokushima Plant (Tokushima Prefecture), Itami Plant (Hyogo Prefecture)
	UMN Pharma Inc. Yokohama Research Center (Kanagawa Prefecture), Akita Plant (Akita Prefecture)
	Shionogi Techno Advance Research Co., Ltd.^*1
	Shionogi Business Partner Co., Ltd.
	Aburahi AgroResearch Co., Ltd. (Shiga Prefecture) ^*1
	Shionogi Smile Heart Co., Ltd. ^*1
	Nanjing Chang’ao Medicine Technology Co., Ltd. Nanjing Factory (China)

Companies and operating sites with no location indicated are all situated in Osaka Prefecture.

*1 Company on the premises of an operating site of Shionogi & Co., Ltd.

Numerical Data and Graphs

The numerical data provided in the report are rounded off to the nearest whole number. Accordingly, the totals in the graphs and charts do not necessarily correspond to the sum of the individual ﬁgures.

Environmental Performance Data Related to Energy and CO₂

The data is calculated based on the following calculation methods.

Calculation methods for environmental performance data

[Boundary of calculation]

Scope 1 and 2	SHIONOGI Group (excluding overseas Group companies [administrative offices]): SHIONOGI Group companies in Japan and Nanjing Plant (Nanjing Chang’ao Pharmaceutical Co., Ltd.)
Scope 3
Category 1	Shionogi & Co., Ltd. and Shionogi Pharma Co., Ltd.
Category 2	SHIONOGI Group companies in Japan
Category 3	SHIONOGI Group companies in Japan
Other categories	SHIONOGI Group companies in Japan (UMN Pharma Inc. is not included in “Category 4” and “Category 12” among “Other categories.”)
Energy consumption	SHIONOGI Group (excluding overseas Group companies [administrative offices]): SHIONOGI Group companies in Japan and Nanjing Plant (Nanjing Chang’ao Pharmaceutical Co., Ltd.)

[Calculation methods]

Indicator	Calculation methods
Scope 1	CO₂ emissions resulting from fuel use Calculation methods: Based on the “Greenhouse Gas Emissions Accounting and Reporting Manual (Ver. 4.9)” of the Ministry of the Environment and the Ministry of Economy, Trade and Industry of Japan CO₂ emission factors: Based on the “Greenhouse Gas Emissions Accounting and Reporting Manual (Ver. 4.9)” of the Ministry of the Environment and the Ministry of Economy, Trade and Industry of Japan
Scope 2	CO₂ emissions resulting from purchase of electricity and steam Calculation methods: Based on the “Greenhouse Gas Emissions Accounting and Reporting Manual (Ver. 4.9)” of the Ministry of the Environment and the Ministry of Economy, Trade and Industry of Japan CO₂ emission factors: Electricity (Japan) (location-based): National average emission factors from “Emission Factors by Power Suppliers (for the calculation of GHG emissions by specified emitters) (FY2021 results)” published by the Ministry of the Environment and the Ministry of Economy, Trade and Industry of Japan (January 24, 2023, partially revised on May 26) Electricity (Japan) (market-based): Adjusted emissions factors from “Emission Factors by Power Suppliers (for the calculation of GHG emissions by specified emitters) (FY 2021 results)” published by the Ministry of the Environment and the Ministry of Economy, Trade and Industry of Japan (January 24, 2023, partially revised on May 26) Electricity (China) (both location-based and market-based): FY2022: No. 43 National Grid Average Emission Factor (2022) in Climate Letter [2023] No.43 of Office of the Ministry of Ecology and Environment of China /before FY2021: Emissions Factors (2019) of the International Energy Agency (IEA) Steam (both location-based and market-based): Emissions factors from the “Greenhouse Gas Emissions Accounting and Reporting Manual (Ver. 4.9)” of the Ministry of the Environment and the Ministry of Economy, Trade and Industry of Japan
Scope 3
Category 1	CO₂ emissions from activities up to the manufacturing of raw materials, parts, purchased goods, and sales-related materials, etc. (hereafter goods purchased) Calculation methods: Based on the “Basic Guidelines on Accounting for Greenhouse Gas Emissions Throughout the Supply Chain (Ver. 2.5)” of the Ministry of the Environment and the Ministry of Economy, Trade and Industry of Japan, the emissions are calculated by multiplying the purchase price by the emission factor for “Pharmaceuticals” in “[5] Emission Factor Based on the Input-Output Table” in the “The Database on Emissions Unit Values for Calculation of Greenhouse Gas Emissions, etc., by Organizations Throughout the Supply Chain (Ver. 3.3)” of the Ministry of the Environment of Japan. (In addition, in response to the fact that “prices include consumption tax” was added as a point to note regarding emission intensity (in Japan) in the database (Ver. 3.3), CO₂ emissions have been calculated using the emission intensity based on prices including consumption tax since FY2022. In line with this, GHG emissions in or before FY2021 have been recalculated using the emission intensity based on prices including consumption tax.) The purchase price includes transportation costs associated with the purchase of purchased goods and does not include amounts related to the purchase of services other than the above.
Category 2	CO₂ emissions resulting from the construction and manufacturing of own capital goods Calculation methods: Based on the “Basic Guidelines on Accounting for Greenhouse Gas Emissions Throughout the Supply Chain (Ver. 2.5)” of the Ministry of the Environment and the Ministry of Economy, Trade and Industry of Japan, calculated by multiplying the acquisition cost of capital goods by the emissions factor for “pharmaceuticals” in “[6] Emissions factor per unit price of capital goods” in the “The Database on Emissions Unit Values for Calculation of Greenhouse Gas Emissions, etc., by Organizations Throughout the Supply Chain (Ver. 3.3)” of the Ministry of the Environment of Japan (In addition, in response to the fact that “prices include consumption tax” was added as a point to note regarding emission intensity (in Japan) in the database (Ver. 3.3), CO₂ emissions have been calculated using the emission intensity based on prices including consumption tax since FY2022. In line with this, GHG emissions in or before FY2021 have been recalculated using the emission intensity based on prices including consumption tax.)
Category 3	CO₂ emissions resulting from procurement of fuels required for the generation of electricity purchased Calculation methods: Based on the “Basic Guidelines on Accounting for Greenhouse Gas Emissions Throughout the Supply Chain (Ver. 2.5)” of the Ministry of the Environment and the Ministry of Economy, Trade and Industry of Japan, calculated using “7. Emission Unit Values per Use of Electricity and Heat” in the “The Database on Emissions Unit Values for Calculation of Greenhouse Gas Emissions, etc., by Organizations Throughout the Supply Chain (Ver. 3.3)” of the Ministry of the Environment of Japan
Other categories	Total of Categories 4, 5, 6, 7 and 12, excluding Categories 8, 9, 10, 11, 13, 14 and 15 that are not included in our own corporate activities or are reported under other categories Calculation methods: Based on the “Basic Guidelines on Accounting for Greenhouse Gas Emissions Throughout the Supply Chain (Ver.2.5)” of the Ministry of the Environment and the Ministry of Economy, Trade and Industry of Japan
Energy consumption
Total energy consumption	Total calorie-converted values for purchased energy (gasoline, other fuel oils, LPG, LNG, town gas, electricity, steam) Calculation method: Fuel is expressed as the sum of calories calculated using calorie conversion factors under the “Ordinance for Enforcement of the Act on Rationalizing etc. Energy Use” converted into MWh units with a rate of 3.6GJ per MWh. Note that calorie conversion factors disclosed by providers were used for town gas. Electricity is expressed as the sum of purchase volumes (MWh) without conversion to primary energy
Gasoline	Amount of gasoline purchased, including fuel for sales force vehicles
Other fuel oils	Amount of kerosene, light oil, and heavy oil A purchased
Liqueﬁed petroleum gas (LPG)	Amount of LPG purchased from gas suppliers
Liqueﬁed natural gas (LNG)	Amount of LNG purchased from gas suppliers
Town gas	Amount of town gas purchased from gas suppliers
Electricity	Amount of electricity purchased from power suppliers
Steam	Amount of steam purchased from steam suppliers

Reporting Guidelines

The Environmental Reporting Guidelines 2018 of the Ministry of the Environment of Japan are used as a reference.

Overall Reporting View

A copy of this report is made available on SHIONOGI’s ofﬁcial website, while excerpts from the report are included in the SHIONOGI Integrated Report.

The environmental data of FY2022 marked in red on page 116 of “SHIONOGI Integrated Report 2023,” published separately from the present report, was subjected to third-party assurance by KPMG AZSA Sustainability Co., Ltd.

Trends of Major Performance Assessment Indicators