Myriad risks are involved in corporate life. It is imperative for corporations to prevent risks from developing into incidents and, in the case of an incident, to handle it in such a manner as to minimize damage.
At Shionogi, we approach risk management mainly from two perspectives to optimally manage all types of risks, internal and external, prevention and recurrence prevention in the event of an unexpected incident, thereby ensuring business continuity and corporate value enhancement.
The following is a summary of results from risk identification and assessment in connection with Shionogi’s recent environment-related challenges.

Environmental risk management process

[Identification] Extract challenges based on global frameworks such as the SDGs and the World Economic Forum in Davos, the main items of external assessment, and trade organizations’ policies and other external environmental changes. [Assessment] Identify the impact of each challenge on business and determine its importance in consideration of the scale of impact, probability of occurrence, and future ramifications. [Response] Study possible measures in response to each challenge. [Assessment of efficacy] Review at the Shionogi Group Central EHS Committee. Report necessary matters to the Board of Directors via the Corporate Executive Meeting.

Identification, assessment results, and responses

Challenge Risks and opportunities(including those for suppliers) Impact Probability Future Importance Measures
AMR Emergence of antimicrobial resistance Large Large Large

- Pollution control during production at Shionogi and suppliers

- Publication of AMR actions and measures

Lowered reputation for the pharmaceutical industry Large Medium
Climate change Capital investment following regulatory reinforcement Medium Medium Large

<Improve precision of climate change-related risk management>

- Information gathering from governmental agencies and trade organizations

- Formulation of CO2 emission reduction plans by the Energy Conservation Committee

- Formulation of measures for stable supply

Discontinued operation due to extreme meteorological phenomena Large Small
Improved external assessment for reduced CO2 emissions Medium Small
Profit from change in the market for tropical infectious disease-related products Medium Small
Water-related risks Discontinued operation due to droughts Large Small Large

<Improve precision of water-related risk management>

- Information gathering from governmental agencies and trade organizations

- Monitoring of waste water

- Water consumption control

Discontinued operation due to floods Large Small
Discontinued operation due to intake water quality deterioration Large Small
Capital investment following regulatory reinforcement concerning waste water criteria Medium Medium
Compromised public confidence due to pollution with waste water from operating sites Large Small
Plastic Increased plastic waste, lowered reputation due to plastic use for products Large Medium Large

- Promotion of 3R initiatives

- Restricted use for products

Chemical substances (legal revision)

Biodiversity (industry-wide guidelines)

Waste (industry-wide goals)

Compliance, reputation - Adoption and promotion of EHS action goals
Basic assessment criteria are provided in the table below; deliberations by the Central EHS Committee are also included.
Level Impact Probability
Large Discontinued operation Frequent in the area/industry
Medium Capital investment Past incidents
Small No past incidents