Action Targets

SHIONOGI Group EHS Action Targets (Environment)

In FY2023, we reviewed our Environmental Materiality and added a new item, “Environmental management and governance,” to the four previously identified items of AMR, Climate change, Water, and Resource conservation and circulation. In response, we updated our medium-term targets, “SHIONOGI Group EHS Action Targets.” Until now, the SHIONOGI Group EHS Action Targets have been updated every five years. However, to make investment decisions and implement measures strategically from a longer-term perspective, medium- and long-term goals have been set for each item, with FY2035 set as the final year (see the table below). Counting backwards from FY2035, which is the final year of the SHIONOGI Group EHS Action Targets, we will formulate a single-year action target, which includes measures to be taken each year and numerical targets for each indicator, and work to achieve these targets.

In FY2024, we will be formulating a roadmap through to FY2035 and considering disclosing specific indicators for each item of Environmental Materiality in the first year.

Scope: SHIONOGI Group (including Global Group companies)

SHIONOGI Group EHS Action Goals (2024–2035)

Item	Medium- and long-term targets (2035)	Remarks
Climate change	[Reduction of greenhouse gas (CO₂) emissions] ・2035: Reduce CO₂ emissions by 60% (FY2019 benchmark）	<2030: SBT target> ・Reduce Scope 1+2 emissions by 46.2% and Scope 3 Category 1 emissions by 20% ・Increase the introduction rate of renewable energy to more than 90% across the SHIONOGI Group <2050> ・Achieve zero emission
Climate change	[Energy conservation] ・ Reduce energy intensity by 1% per year ・Promote the introduction of highly energy-efficient equipment ・Promote a shift to non-fossil energy	―
Resource conservation and circulation	[Waste management] ・Reuse/recycle at least 65% of waste plastics ・Landfill rate: 1% or less	<2030> ・By FY2030, reuse/recycle 65% of waste plastics
Water	[Water resources] ・Water resource return rate (Total water discharge volume / Total water withdrawal volume): 85% or more	<Secondary monitoring item> ・Total water withdrawal
AMR	[AMR management] ・All antimicrobials provided by SHIONOGI are manufactured at plants certified by the British Standards Institution (BSI)	<2030> ・By FY2030, antimicrobial manufacturing plants in SHIONOGI are BSI certified.
Environmental management and governance	[Strengthening of the EHS management system] <Management> ・Establish a global management system throughout the supply chain and implement appropriate operations ・Raise employee awareness of environmental contributions <Governance> ・Strengthen corporate commitment to achieving the Action Goals for 2035 ・Maintain thorough compliance with environmental laws and regulations	―

SHIONOGI Group EHS Action Targets (2020–2024/2030/2050) and FY2023 Results

Scope: SHIONOGI Group companies in Japan (Global SHIONOGI Group for [GHG (CO₂) emissions reduction] and [Water risk mitigation])

[GHG (CO2) emissions reduction]

Targets of [GHG (CO2) emissions reduction] and [Water withdrawal reduction], [Water risk mitigation], [Waste and plastics] are for global, while the rest are targets and results of domestic Group companies

The underlined targets are long-term targets for FY2030 and FY2050.

*1 Since we obtained SBTi certification in June 2021, the FY2024 and FY2030 targets were modified to aim for science-based targets.

*2 GWP: Global Warming Potential

Item	Medium- and long-term targets (FY2020-FY2024 / FY2030 / FY2050）	FY2023 targets	FY2023 results	Achievement
AMR	[AMR control] ・Maintain the management system at the Kanegasaki Plant	[AMR control] ・Maintain the management system at the Kanegasaki Plant and the Tokushima Plant	[AMR control] ・The management system was maintained	〇
AMR	・ Complete initial audits of 100% of relevant suppliers ・By FY2030, establish a responsible AMR management system, including the supply chain (complete post-audit follow-up)	・Complete initial audits of 100% of relevant suppliers	・Initial audits of 100% of relevant suppliers were completed	〇
Climate change	[GHG (CO₂) emissions reduction] (FY2019 benchmark)^1 ・Reduce Scope 1+2 emissions by 10% ・Reduce Scope 3 Category 1 emissions by 10% ・By FY2030, reduce Scope 1+2 emissions by 46.2% and Scope 3 Category 1 emissions by 20% ^1 ・By FY2050, achieve zero emissions**	[GHG (CO₂) emissions reduction] (FY2019 benchmark) ・Reduce CO₂ emissions (Scope 1, Scope 2) by 15%	[GHG (CO₂) emissions reduction] (FY2019 benchmark) ・CO₂ emissions (Scope 1, Scope 2) were reduced by 12.4% (CO₂ emissions increased due to worsening emission factors)	×
		・Reduce CO₂ emissions (Scope 3 Category 1) by 9%	・CO₂ emissions (Scope 3 Category 1) were reduced by 21.5%	〇
	・Improve energy intensity by an annual average of 1%	・Improve energy intensity by an annual average of 1%	・Compared to the previous fiscal year: 0.2% improvement (18.1% worse than FY2019: Increase in manufacturing volume)	×
	・Promote the introduction of highly energy-efficient equipment and the electrification of equipment	・Promote the introduction of highly energy-efficient equipment and the electrification of equipment	・Highly energy-efficient equipment was installed at CRIC, SPRC, SPH (Settsu Plant, Kanegasaki Plant, Tokushima Plant, Itami Plant), and UMN Yokohama Research Center	〇
Resource conservation and circulation	[Waste and plastics] ・Reduce the amount of waste generated by 25%. (FY2018 benchmark)	[Waste and plastics] ・Reduce the amount of waste generated to the FY2022 level (5,169 tons) or less	[Waste and plastics] ・Waste generated: 6,111 tons (increased by 59.8% from the FY 2018 level) (due to an increase in manufacturing volume)	×
		<Global> ・Reduce the amount of waste disposal to the FY2022 level (4,793 tons) or less ・Reduce the amount of hazardous waste disposal to the FY2022 level (1,434 tons) or less	<Global> ・Waste disposed of: 4,283 tons (including hazardous waste) ・Hazardous waste disposed of: 1,351 tons	〇
	・Reuse/recycle 80% of waste generated	・Reuse/recycle at least 80% of waste generated	・Reuse/recycle of waste generated: 89%	〇
	・Reuse/recycle 30% of waste plastics ・By FY2030, reuse/recycle 65% of waste plastics	・Reuse/recycle 30% of waste plastics	・Reuse/recycle of waste plastics: 34%	〇
	・Restrict plastic use in products	・Restrict plastic use in products	・The adoption of biomass plastic for PTP sheets and thinner sheets was examined at Shionogi Pharma	〇
Water	[Water risk mitigation] ・Complete a thorough assessment of water risks at research laboratories, plants, and other major operating sites	[Water risk mitigation] ・Conduct water risk assessment using WRI Aqueduct and in-house assessment at major operating sites in Japan	[Water risk mitigation] ・Water risk assessment using WRI Aqueduct and in-house assessment was conducted at all major operating sites in Japan	〇
	[Water withdrawal reduction] ・Keep water withdrawal at or less than 1,340 thousand m³ (around the FY2018 level)	[Water withdrawal reduction] Keep water withdrawal at the FY2022 level (1,366 thousand m³) or less	[Water withdrawal reduction] ・Water withdrawal: 1,343 thousand m³	〇
		<Global> Keep water withdrawal at the FY2022 level (1,517 thousand m³) or less	<Global> ・Water withdrawal: 1,465 thousand m³	〇
Chemical substances	[Appropriate management of chemical substances] ・There are no medium-term targets because issues identified in FY2020 should be addressed	[Appropriate management of chemical substances] ・Recheck the handling of chemical substances (risk assessment, legal compliance status) (UMN only), regarding ・their storage (including temporary storage and storage before disposal), transfer, and use	[Appropriate management of chemical substances] ・Risk assessment and inspection were conducted at UMN (Akita Plant and Yokohama Research Center)	〇
Chemical substances	[Responsible management of fluorocarbons] ・Fluorocarbons: Manage equipment using fluorocarbons responsibly, and promote the introduction of fluorocarbon-free or low-GWP^*2 equipment	[Responsible management of fluorocarbons] ・Fluorocarbons: Manage equipment using fluorocarbons responsibly, and promote the introduction of fluorocarbon-free or low-GWP equipment	[Responsible management of fluorocarbons] ・Although no fluorocarbon-free or low-GWP equipment was introduced this fiscal year, equipment using fluorocarbons was properly managed	〇