Climate Change

Approach to Climate Change｜Climate Change Countermeasure Targets｜Climate Change Initiatives

Approach to Climate Change

In October 2020, the Japanese government declared its goal of achieving carbon neutrality by 2050. Triggered by this declaration, Japan’s movement toward a decarbonized society has accelerated. Incorporating environmental factors, including climate change, into corporate management strategies and aiming for decarbonization has become a critical challenge for companies seeking to contribute to the achievement of the SDGs and grow sustainably alongside society.

Based on the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD)*¹, the SHIONOGI Group (“SHIONOGI”) integrates climate change countermeasures into its management strategy, has established a company-wide governance structure, and is actively advancing initiatives to mitigate risks and generate business opportunities after identifying and assessing medium- to long-term business risks and opportunities.

*1 TCFD: An organization established by the Financial Stability Board in response to a request from the G20 to examine approaches to climate-related disclosure and financial institution responses.

Climate Change Countermeasure Targets

SHIONOGI has conducted a detailed assessment of the impact of climate change on its business using the TCFD framework as a reference and has considered strategies and specific countermeasures. As a key indicator for reducing climate-related risks, we have adopted “GHG (CO₂) emission reduction.” Accordingly, we have incorporated this into our medium- and long-term SHIONOGI Group EHS*² Action Targets. In response to the Japanese government’s declaration of “Carbon Neutrality by 2050” and the global movement toward reducing GHG emissions, SHIONOGI has set SBTs*³ as its FY2030 GHG emissions reduction targets, as part of our commitment to achieving carbon neutrality by 2050; these targets were certified by the SBT Initiative in June 2021 (for details, please refer to this page).
In light of increasing public awareness and expectations for a decarbonized society, we have also set FY2035 targets, including efforts to decarbonize thermal energy—specifically, a 60% reduction in Scope 1+2 emissions compared with FY2019.

*2 EHS: Environment, Health, and Safety
*3 Science-based Targets (SBTs): Emission reduction targets based on scientific evidence

† Targets certified by the SBTs initiative

Climate Change Initiatives

Initiatives for Scopes 1 and 2

To achieve the FY2030 targets, we are promoting various energy-saving and low-carbon measures, such as the introduction and renewal of highly efficient equipment, and are sequentially introducing renewable energy-derived electricity, with a focus on SHIONOGI’s major sites, such as plants and research laboratories, to reduce CO₂ emissions. In FY2024, we achieved a 23.3% reduction in Scopes 1 and 2 combined compared with FY2019, exceeding the target of a 21% reduction.

Owing to the early implementation of renewable energy-derived electricity at the Shionogi Pharmaceutical Research Center (SPRC), originally scheduled for FY2025 but completed in FY2023, we significantly surpassed the interim target of a 10% reduction set in the “SHIONOGI Group EHS Action Targets” for FY2024 and achieved the standard reduction target under the SBT (an annual reduction of 4.2%, equivalent to a 21% reduction by FY2024 compared with FY2019).

In FY2024, following the introduction plan for SHIONOGI’s major sites, renewable energy-derived electricity was newly introduced to the Settsu Plant of Shionogi Pharma Co., Ltd., which handles SHIONOGI’s production functions. Including the major sites of Shionogi & Co., Ltd. (Head Office Building, Aburahi Research Center, CMC Research Innovation Center [CRIC], and Pharmaceutical Research Center [SPRC]), where the introduction has already been completed, the overall introduction rate has significantly increased to 55.8%. Going forward, we will continue phased implementation at the remaining plants of Shionogi Pharma Co., Ltd., aiming to complete the introduction at all major sites by 2030.

Additionally, to achieve the FY2035 targets and carbon neutrality by 2050, we have initiated efforts to decarbonize thermal energy—such as electrification, hydrogenation, and the introduction of e-methane and e-fuel*—primarily at the plants of Shionogi Pharma Co., Ltd., which have high Scope 1 emissions. To help realize a decarbonized society, SHIONOGI is also intensifying efforts to expand hydrogen utilization, including participation in the Japan Hydrogen Association (JH2A) and investment in hydrogen funds.

* Artificially synthesized fuels (e-methane: gaseous fuel, e-fuel: liquid fuel) using hydrogen (H₂) and carbon dioxide (CO₂) as raw materials. These are alternative fuels with virtually zero CO₂ emissions, as they are synthesized using H₂ produced from renewable energy-derived electricity and CO₂ recovered from the atmosphere or other sources.

Achievements and Plans for Introducing Renewable Energy-derived Electricity

Fiscal year of introduction	Site	Company name	Status
FY2021	Head Ofﬁce	Shionogi & Co., Ltd.	Completed
FY2022	Aburahi Research Center	Shionogi & Co., Ltd.	Completed
FY2023	Shionogi CMC Research Innovation Center, Shionogi Pharmaceutical Research Center (SPRC)	Shionogi & Co., Ltd.	Completed
FY2023	Amagasaki Office	Shionogi Pharma Co., Ltd.	Completed
FY2024	Settsu Plant	Shionogi Pharma Co., Ltd.	Scheduled
FY2025	Kanegasaki Plant (25%)*	Shionogi Pharma Co., Ltd.	Scheduled
FY2026	Kanegasaki Plant (50%) * , Tokushima Plant	Shionogi Pharma Co., Ltd.	Scheduled
FY2027	Kanegasaki Plant (100%)*,	Shionogi Pharma Co., Ltd.	Scheduled
FY2028	Akita Plant	UMN Pharma Inc.	Scheduled
FY2029	Itami Plant	Shionogi Pharma Co., Ltd.	Scheduled
FY2030	Nanjing Plant	Nanjing Chang’ao Pharmaceutical Co., Ltd.	Scheduled

* Ratio of Renewable Energy-derived Electricity Introduced

As part of our efforts to improve energy efficiency, SHIONOGI has set targets to increase energy intensity (energy use per unit of output) by 1% annually and to introduce highly energy-efficient equipment. In addition to reducing the overall energy consumption through the installation of such equipment, we are continuously reviewing equipment operation methods to enhance efficiency.

In FY2024, although total energy consumption decreased compared with FY2023, the energy intensity denominator declined because of the consolidation and closure of offices, resulting in an increase in energy intensity. Furthermore, owing to increased business activities aimed at achieving the STS2030 Revision—including those related to COVID-19—energy consumption continued to plateau at a high level, and we were unable to meet the annual target.

CO2排出量および生産性（売上高／CO2排出量） CO2排出量および生産性（売上高／CO2排出量）

Vehicles for Sales Activities

Because of the spread of the COVID-19 pandemic and the promotion of digital transformation (DX) in medical information provision activities, the proportion of medical representatives (MRs) working remotely has been increasing. As a result, fuel consumption by vehicles for sales activities in FY2024 remained lower than in FY2019, before the pandemic.
Furthermore, regarding the reduction of CO₂ and exhaust gas emissions through the conversion of vehicles loaned to MRs to hybrid models, this transition was successfully completed for all vehicles for sales activities in FY2022.

Scope 3 Reduction Initiatives

At SHIONOGI, Scope 3 emissions account for approximately 60% of our total greenhouse gas (CO₂) emissions. Collaborative reduction efforts across the entire supply chain are indispensable to achieve our SBTs, and we are working closely with suppliers to drive these efforts.

Among SHIONOGI’s Scope 3 emissions, Category 1: Purchased goods and services accounts for more than 50% of the total. For this category, we have prioritized the establishment of medium-term targets and are actively promoting the consideration and implementation of reduction measures.

Scope 3 emissions for each category were calculated using the “Basic Guidelines on Accounting for Greenhouse Gas Emissions Throughout the Supply Chain Ver.2.7” issued by the Ministry of the Environment and the Ministry of Economy, Trade, and Industry.

In FY2021 (corresponding to Reiwa 3), SHIONOGI participated in the “Model Project for Supporting Achievement of the Decarbonization Targets of the Entire Supply Chain” of the Ministry of the Environment. Based on the CO₂ reduction measures expressed through this project, we are establishing a collaborative framework that includes Group companies to promote supplier engagement and implement the supply chain engagement process*⁴.

Specifically, we are conducting supplier engagement activities such as confirming the status of CO₂ reduction efforts through company-specific questionnaires for top suppliers by purchase amount, holding briefing sessions to promote understanding of SHIONOGI’s climate change policy, and organizing study sessions on Scope 3 emission calculation methods. These efforts support suppliers in reducing their greenhouse gas emissions and provide support for GHG emission disclosure.

In FY2024, we conducted supplier engagement activities with the top 11 suppliers by purchase amount, including explanations of decarbonization initiatives in the pharmaceutical industry and confirmation of CO₂ reduction efforts via questionnaires.

Going forward, we will select key suppliers with a greater impact on CO₂ emissions and provide prioritized requests and support for reduction.

*4 For details on the supplier engagement process created under this support project, please refer to the “Guidebook for Formulating a GHG Emissions Reduction Plan to Achieve the SBTs” (external link).

External Engagement in Climate Change Initiatives

CDP Climate Change 2024: A List Company for 3 Consecutive Years and Supplier Engagement Leader for 5 Consecutive Years

In the climate change category of “CDP 2024,” conducted by CDP *⁵, an international non-profit organization focused on environmental disclosure, SHIONOGI was awarded the A list rating for the third consecutive year. Additionally, for the fifth consecutive year, we were recognized as a Supplier Engagement Leader—the highest rating in the Supplier Engagement Assessment (SEA).

*5 CDP
CDP is a non-profit organization that encourages companies and municipalities to disclose environmental information—including climate change, water resource protection, and forest conservation—based on requests from institutional investors and major purchasers. Through this disclosure, CDP promotes environmental action and has become one of the world’s leading environmental data platforms.

Support for the Japan Climate Initiative (JCI) Messages

The JCI is a network that aims to realize a decarbonized society by strengthening information dissemination and dialogue among companies, local governments, and NGOs actively engaged in climate action in Japan. Since joining JCI in April 2021, SHIONOGI has endorsed all five messages issued by JCI to the Japanese government.

“JCI Message: Calling on the Japanese government to set an ambitious 2035 target aligned with the 1.5°C goal” (external link).

SHIONOGI has set medium- and long-term targets, including SBTs, and is working daily to reduce CO₂ emissions. These efforts align with our decarbonization policy, which aims for carbon neutrality by 2050, and we fully support the JCI message.

Addressing AMR: A Concern Worsened by Climate Change

SHIONOGI’s initiatives to combat Antimicrobial Resistance (AMR) have been featured on the “Climate Change Adaptation Information Platform (A-PLAT)” operated by the National Institute for Environmental Studies, Japan.

For more details, please refer to our [AMR page] (external link).

Shionogi & Co., Ltd. | Examples of adaptation business | Adaptation for Private Sector | Climate Change Adaptation Information Platform (A-PLAT) (nies.go.jp) (external link).