Identification of Material Issues Related to the Environment

At Shionogi, we draw up a Materiality Map regarding our business activities in consideration of their relevance to our business and their importance in society.
Regarding the Shionogi Group’s EHS activities, we extracted and identified material (important) issues in consideration of their impact on the sustainability of global ecosystems and their impact on the stakeholders.
In the process of identification, we extracted and assessed materiality in meetings among related divisions within the Company and through dialogues with ESG institutional investors, external experts, and other such stakeholders. The material issues thus identified were reported to the Corporate Executive Meeting and the Board of Directors upon approval by the Shionogi Group Central EHS Committee.
On the identified material issues, we received views from Prof. Katsuhiko Kokubu (Kobe University Graduate School of Business Administration; right photo) and Ms. Eriko Nashioka (certified public accountant and licensed tax accountant/ Representative Director of IEMA; left photo), from whom Shionogi received the EHS Management Assessment in the present EHS Report.
It is extremely important for a company to pursue its business activities upon the identification of material issues, so as to contribute to the realization of a sustainable society and continue and develop the business activities. So your identification of material issues following an appropriate process is highly positive.
All of the three themes that Shionogi has identified as highly important environment-related challenges, namely AMR, climate change and water risk, are indeed extremely important for Japan and the whole world. The choice of AMR, particularly relevant to Shionogi, is commendable.
The identification of material issues is not merely related to drawing up priority policies; it takes on significance when it leads to concrete action. Therefore, it is essential to pursue activities in a continued manner toward solutions with regard to these issues. We strongly expect Shionogi to create value that contributes to society through its activities responding to material issues in the future.
Shionogi hopes to further deepen its activities by clarifying its concrete steps toward handling material issues in the future and key performance indicators (KPI), to offer value to society and meet our stakeholders’ expectations.
[Identification of material issues relating to EHS] Step1 Extraction: Extract issues from global frameworks such as the SDGs and the World Economic Forum, principal items of external assessment, and external environmental changes as reflected in trade organization policies. / Step2 Assessment: Assess issues based on stakeholders’ interest in Shionogi’s business and its impact on them. / Step3 Identification: Assess the degree of impact on the sustainability of global ecosystems, and draw up a materiality map. / Step4 Action: Incorporate measures into the Shionogi Group’s EHS action goals upon approval by the Central EHS Committee, and take action.
Materiality Map

Summary of identification of material issues

[Material issues: Summary of identification] AMR: This is a global issue that a pharmaceutical company manufacturing antimicrobials cannot ignore. The emergence of AMR impacts global ecosystems enormously. / Climate change: Shionogi’s CO2 emissions are relatively small when all industrial sectors are taken into account. Nevertheless, stakeholders’ demand for action in this regard is growing increasingly strong. Responding to climate change is essential for the sustainability of global ecosystems. / Water: Water is an indispensable factor for the business continuity of pharmaceutical companies and essential for the sustainability of global ecosystems. / Plastics: A part of the problem of marine plastic, this is an international issue, but Shionogi uses only a small quantity of plastics in containers and packaging materials for products. / Chemicals Biodiversity Waste: It is imperative to respond to industry-wide guidelines and targets and legal revisions.

Material issues and the value chain

  Purchase R&D Manufacturing Distribution and sales Use and disposal
AMR AMR management   AMR management    
Climate change (energy conservation, global warming control) Climate change risk assessment Energy conservation

Climate change risk assessment

Energy conservation

Introduction of hybrid vehicles  
Water Water risk assessment Water risk assessment, water conservation, waste water management Water risk assessment, water conservation, waste water management    
Plastics (resource conservation, waste material control) Green purchasing Design of environmentally responsible products 3R’s of waste materials  

Containers and packaging materials Reuse

Responsible disposal

Management of chemical substances  

Process safety

Chemical hazards

Environmental impact assessment of pharmaceutical products    
Biodiversity   Prevention of dispersal of foreign species and genetically modified organisms