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Environment :

Global Environment Policy/Environment Challenging Ono Vision(ECO VISION 2050)

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Global Environment

The impact of global warming, including extreme weather events, is increasing year by year, and efforts to prevent global warming have become an important challenges for the international community. The Paris Agreement at COP21 calls for limiting the average global temperature increase to less than 2 degrees Celsius compared to pre-industrial levels, with the goal of essentially reducing greenhouse gas emissions from human activities to zero. To this end, we have established an environmental vision (ECO VISION 2050) based on our "Global Environmental Policy". Recognizing the corporate social responsibility for the environment, we will promote environmentally friendly activities in all of our business activities in order to realize a richer global environment.

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Global Environment Policy

Under the corporate philosophy "Dedicated to Man's Fight against Disease and Pain,” Ono group contributes to the realization of a sustainable and prosperous society by creating innovative medicines and working on solving environmental issues such as climate change.

  1. Recognizing corporate social responsibility for the environment, we conduct environmentally friendly activities at entire stages of product research, development, procurement, production, distribution, sales, use, and disposal.
  2. We comply with environmental laws and agreements in each country and region, and our voluntary standards.
  3. Under the environmental management system, we set goals and action plans, monitor regularly, and disclose information.
  4. We actively introduce the latest science and technology to reduce environmental impacts.
  5. To conserve the natural environment and biodiversity, we pursue efficient use of resources and energy, efficient use of water and appropriate wastewater management, reduction of waste, promotion of recycling, and prevention of pollution.
  6. We communicate with internal and external stakeholders and produce eco-friendly products in cooperation.
  7. We build all employees’ environmentally sensitive minds through education to promote environmentally friendly initiatives.
ONO PHARMACEUTICAL CO.,LTD., ONO PHARMACEUTICAL CO.,LTD., system

Environmental Vision

ONO has established a medium- and long-term environmental challenge vision for 2050, named “Environmental Challenge ONO Vision (ECO VISION 2050)” to realize a sustainable society.

ECO VISION 2050

Background for the establishment of vision

In recent years, the global environmental issues including climate change and other issues have become serious. In the future of 2050, it is expected that people's healthy and sound life will be threatened due to various threats such as water and food shortages, increase of new diseases, devastating natural disasters and so on.
In order to promote the creation of a healthy and sound society through the discovery and development of innovative pharmaceutical products under the corporate philosophy to be "Dedicated to Man's Fight against Disease and Pain", it is important that we recognize that our business activities are supported by a sound global environment and that we will strengthen our activities toward the resolution of environmental challenge. We believe that such activities are not only our corporate responsibility for the environment, but also lead to build the foundation for sustainable business activities.
ONO will challenge to reduce the environmental burden in anticipation of 2050 based on the ECO VISION 2050 so that people can welcome a healthy and sound society.

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Medium- to Long-term Targets

In order to realize “ECO VISION 2050”, we have defined three important items as "Realization of a decarbonized society," "Realization of a water recycling society," and "Realization of a resource recycling society," and have set up specific medium- and long-term goals for greenhouse gas, water consumption and waste.

Greenhouse gas

Our medium- to long-term greenhouse gas reduction targets are classified by the SBTi as the strictest "1.5 °C target." For more information, please see here (Environmental Initiatives). As for energy, we will increase the use of renewable energy in line with the RE100 target that we joined in June 2020.

ECO VISION 2050

Roadmap for achieving the ECO VISION 2050

Water consumption
  1. Reduce water resource consumption (water intake) per production volume unit by 15% in FY2030. <compared to FY 2017>
  2. Reduce water resource consumption (water intake) below the previous year. <FY target>

Waste
  1. Maintain the final landfill disposal rate of industrial waste 1% or less every year (*).
    • * Defining the ratio of non-recycling (landfill and simple incineration) to less than 1% of the total amount as a standard of ONO’s “zero emission.”
  2. Reduce the volume of industrial waste per production volume unit by 15% in FY 2030. <compared to FY 2017>
  3. Reduce the volume of industrial waste below the previous year. <FY target>
  4. Promote reductions in the environmental burden in business activities.
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Towards a decarbonized society

The realization of a decarbonized society is one of our key priorities in our business activities, and we are undertaking various company-wide initiatives toward this end. Regarding the risks and opportunities associated with climate change, we expressed our support in October 2019 for the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD)(click here for details). The TCFD is a task force established by the Financial Stability Board (TSB) to help companies understand and disclose the financial impact of climate change on their business. In June 2017, the TCFD announced its recommendations on how companies should detail climate-related impacts in their financial reports. In accordance with the TCFD recommendations, we will evaluate and manage climate change-related risks and opportunities and disclose information appropriately.

Governance

We appoint an officer in charge of the environment as the person responsible for climate change issues. The officer serves as the chairperson of the Environmental Management Committee, which meets at least once a quarter to discuss climate change issues. The officer, who also serves as the chairperson of the CSR Committee and a member of the Management Meeting, presents a report at least once a half year on the results of the Environmental Management Committee’s activities to the CSR Committee and the Management Meeting for discussion. The results of discussions at the CSR Committee and the Management Meeting are reported by the officer at the Board of Directors’ meeting and shared with all directors more than once a year.
In fiscal 2019, the TCFD Study Working Group was established, with the officer in charge of the environment as its head. The Working Group considered issues related to the identification and evaluation of climate change-related risks/opportunities and countermeasures. We include the heads of major relevant departments (Finance, Corporate Strategy & Planning, and Corporate Communications) and the head of the Company-Wide Risk Management Committee as members of the Working Group, thereby integrating climate-related issues into our business strategy.

Strategy
—Analysis and evaluation of risks and opportunities related to climate change—

Analysis and evaluation of climate change-related risks and opportunities were performed using the 1.5°C and 4°C scenarios※1, under the leadership of the TCFD Study Working Group headed by the officer in charge of the environment. The analysis results found, in either scenario, no risks that would have a material financial impact on our business. We will continue to check trends in the international community and closely monitor the impact of risks and opportunities that may have a relatively material financial impact.

  • ※1 For the 1.5°C scenario, the “Sustainable Development Scenario” developed by the International Energy Agency (IEA) was used; for the 4°C scenario, the RCP 8.5 scenario (one of the Representative Concentration Pathways [RCP] scenarios, where global average temperature is predicted to increase by approximately 4°C by 2100), the Stated Policies Scenario of the IEA, etc. were used.
<Risks related to climate change>
Factor Value chain Risk and impact Financial impact※2 Management approach
Society aiming for below 1.5°C Regulatory risk ONO Increased carbon tax burden Our burden of carbon tax levied on greenhouse gas emissions may increase due to the possible tightening of climate change-related regulations. JPY 1.9 billion ・Achieve the greenhouse gas emissions reduction target (Scope 1+2) in line with the 1.5°C target.
・Implement energy saving and renewable energy investment plans to achieve the target.
Suppliers Carbon tax passed on to procurement prices Suppliers’ burden of the carbon tax levied on greenhouse gas emissions may increase due to the possible tightening of climate change-related regulations, and suppliers may pass on the carbon tax burden to us through higher procurement prices, potentially resulting in an increase in our materials costs. JPY 0.6 billion ・Achieve greenhouse gas emissions reduction target (Scope 3).
・Strengthen engagement with suppliers to achieve the target.
If the temperature rises by 4°C Physical risk ONO, manufacturing contractors, suppliers Flood risk (acute) Acute damage (flood) risk from typhoon, etc. may increase, and an interruption of operations caused by damage to production facilities or damage to storage facilities may potentially result in a decrease in revenue. JPY 4.6 billion ・Introduce emergency power generators at main bases and conduct periodic maintenance.
· Integrate climate risks into ERM.
・Maintain a cooperation system with business partners.
・Secure multiple suppliers.
Water shortage risk (chronic) Water-use restrictions due to long-term depletion of water resources may cause an interruption of our operations, potentially resulting in a decrease in revenue. JPY 2.1 billion Strengthen water risk management throughout our supply chain (considering the impact of water shortages caused by climate change in the supplier selection process, securing multiple suppliers).
  • *2 The maximum value during the period from 2020 to 2030 in the 1.5°C or 4°C scenario (Regulatory risk is cumulative.)
<Opportunities related to climate change>
Factor Value chain Opportunity and impact Financial impact※2 Management approach
Society aiming for below 1.5°C Opportunity from resource efficiency ONO High-efficiency pharmaceutical manufacturing process Introduction of high-efficiency pharmaceutical process (green sustainable chemistry *3 etc.) technology can be an opportunity to reduce raw material costs.

*3 Green Sustainable Chemistry is a concept that aims to reduce environmental impacts throughout the life cycle of chemical substances in order to realize a sustainable society.
JPY 2.3 billion ・Define indicators for assessing resource efficiency.
・Develop systems.
If the temperature rises by 4°C Business opportunity Customers Preventive/treatment products If disease trends change due to global warming, demand for existing drugs (for melanoma due to ozone layer depletion caused by global warming, etc.) may increase, or the development and sales of new drugs may have a favorable impact on revenue. JPY 0.5 billion ・Additional indications for existing pharmaceuticals.
・Enhance the new compound library.
・Make use of partnerships, etc.
Society aiming for below 1.5°C Reputation opportunity Investors, customers, recruitment market Corporate value improvement It is possible that our efforts to tackle climate change will help us earn customer trust, retain employees, improve our reputation in the recruitment market, and improve ESG investors’ evaluation of our performance, thus contributing to the creation of corporate value. (Contributing to the creation of corporate value) Appropriately disclose the results of activities undertaken to the public.
  • ※2 The maximum value during the period from 2020 to 2030 in the 1.5°C or 4°C scenario (Opportunity from resource efficiency is cumulative.)
Risk and opportunity management

The risk/opportunity identification process involves identifying potential risks and opportunities and analyzing each risk and opportunity in terms of the timing and probability of occurrence and the extent of the consequences. We determine the priorities for risks comprehensively by also evaluating risk mitigation measures. We prioritize and identify risks that would have a high impact on our business, those that have a high probability of occurrence, and those whose measures have high cost effectiveness. The identified risks are managed effectively by the Environment Management Committee. Regarding disaster risks such as floods, the Company-Wide Risk Management Committee discusses and develops measures and presents them to the Management Meeting for approval. The measures approved by the Management Meeting are communicated to the responsible persons at the plants and research institutes, who will then implement the measures at their respective organizations. The risks are thus managed in a systematic and comprehensive manner. The impacts of risks and opportunities are reviewed each year, and the risk and opportunity management status is reported to the CSR Committee and the Management Meeting.

Indicators and targets

To mitigate the identified risks, we have created a roadmap to achieve the greenhouse gas emission reduction targets newly established based on our medium- to long-term environmental vision. We discuss measures to be taken to achieve the targets and estimate the costs. Our medium- to long-term greenhouse gas reduction targets have been approved as science-based by the international initiative “Science Based Targets initiative (SBTi).” For Scope 1+2, our targets are classified by SBTi as the strictest, “1.5°C target.” To achieve our medium- to long-term targets, we set a single-year target and evaluate the results (progress) against the target (fiscal 2019 target: at least a 8.4% reduction compared to fiscal 2017). In fiscal 2019, vigorous efforts were made toward the medium-term greenhouse gas reduction target (target year: fiscal 2020) and the new medium- to long-term greenhouse gas reduction targets. We also calculate greenhouse gas emissions across the entire value chain (Scope 3). Since fiscal 2014, we have calculated greenhouse gas emissions for our business sites in Japan by dividing Scope 3 emissions into 15 categories, in accordance with the guidelines of the Ministry of the Environment. As for water risks, we conduct risk assessment once a year. Recognizing water risks among the company-wide risks, we implement measures based on the BCP, including maintaining a sufficient stock. In the future, we will also work to establish a mutually complementary system and secure multiple suppliers.

  • * Details on risks/opportunities regarding Climate Change, as well as CO2 emissions are included in CDP climate change. These can be confirmed at the CDP website (CDP ID required). We responded to CDP Climate Change 2019 in Japanese. This PDF is a translation of our response into English.
Carbon Pricing

We have incorporated carbon pricing into our environment-related investment decisions.

Progress towards a decarbonized society

In fiscal 2019, energy-derived greenhouse gas (GHG) emissions from our production and research sites were 19,800 tons on a location basis※4, a 25.8% reduction from 26,700 tons compared to fiscal 2005, achieving our medium-term GHG emission reduction target (target year: fiscal 2020). (When the amount of increase due to the operation of the Yamaguchi Plant, newly established in fiscal 2018, is included, GHG emissions for fiscal 2019 were 23,700 tons, a 11.2% reduction compared to fiscal 2005.)
As for the results (progress) against the new GHG emission reduction targets established based on our medium- to long-term environmental vision, our Scopes 1 and 2 GHG emissions (on a market basis ※5) for fiscal 2019 were 27,300 tons, a 8.4% reduction compared to fiscal 2017. Regarding the use of renewable energy, in line with the RE100 international initiative (ONO joined in June 2020), we worked to promote the use of renewable energy and achieved the fiscal 2019 target (increasing the share of renewable energy in total energy consumption by at least 8.4%). (The renewable energy usage rate in fiscal 2019 was 11.2%.)
Since we achieved the medium-term GHG emission reduction target in fiscal 2019, from fiscal 2020 we will accelerate our efforts to further reduce emissions, aiming to achieve the GHG emission reduction targets newly established based on the medium- to long-term environmental vision.

  • ※4 Location-basis: GHG emissions calculated based on the progress management coefficient released by the Federation of Pharmaceutical Manufacturers’ Associations of Japan
  • ※5 Market basis: GHG emissions calculated using the emission factors released by each electric power company

Energy-derived GHG emissions (Scopes 1+2)

Energy-derived GHG emissions (Scopes 1+2)

  • * Sites where data on GHG emissions were collected: Fujiyama Plant, Joto Plant (current, Joto Pharmaceutical Product Development Center), Yamaguchi Plant (added from fiscal 2018), Minase Research Institute, Fukui Research Institute, Tsukuba Research Institute, Head Office, sales offices and other offices, etc.
    GHG emissions are calculated using the following formula.
    GHG emissions = Purchased electricity (10,000 kWh) × progress management coefficient of the Federation of Pharmaceutical Manufacturers’ Associations of Japan (t-C/10,000 kWh) × 44/12 + Σ (Fuel consumption × Unit calorific value × Carbon emission factor × 44/12)
    For the unit calorific value and carbon emission factor, the values stipulated by the Act on the Promotion of Global Warming Countermeasures are used; for the carbon emission factor for electricity, the progress management coefficient of the Federation of Pharmaceutical Manufacturers’ Associations of Japan is used.
    Before fiscal 2010: Post-adjustment carbon emission factor, presented by Keidanren (Japan Business Federation) in the “Carbon Emission Factors for Electricity Consumption (Receiving End)” (FY2005 (base year): 1.152 t-C/10,000 kWh (4.224 t-CO2/10,000 kWh))
    Fiscal 2011-2012: The receiving-end emission factor converted from the generating-end emission factor, which has been calculated on the assumption that the Great East Japan Earthquake had not occurred and presented by Keidanren in fiscal 2011: 0.927 t-C/10,000 kWh (3.4 t-CO2/10,000 kWh)
    From fiscal 2013: Fiscal 2020 target carbon emission factor released by the Federation of Electric Power Companies of Japan before the Great East Japan Earthquake: 0.900 t-C/10,000 kWh (3.3t-CO2/10,000 kWh)
    The target range for 2005 (base year) and 2020 (target year) is energy-derived GHG emissions from production sites and research institutes.
    Due to the revision of the Company's greenhouse gas emissions calculation rules in fiscal 2019, emissions are recalculated back to previous years. 

GHG emissions (Scopes 1+2)

GHG emissions (Scopes 1+2)

  • * Sites where data on GHG emissions were collected: Fujiyama Plant, Joto Plant (the present Joto Pharmaceutical Product Development Center), Yamaguchi Plant (added from fiscal 2018), Minase Research Institute, Fukui Research Institute, Tsukuba Research Institute, Head Office, sales offices and other offices, etc.
    GHG emissions are calculated using the following formula.
    GHG emissions = Purchased electricity (10,000 kWh) × adjusted emission factor published by the electric company + Σ (Fuel consumption × Unit calorific value × Carbon emission factor × 44/12)+Σ (Fluorocarbon leakage amount x global warming potential)
    The amount of GHG emissions certified under the Green Energy Certificate and J-Credit Scheme is deducted.
    GHG emissions were managed on a location basis in and before fiscal 2016 and on both location and market bases in and after fiscal 2017.
    Due to the revision of the Company's greenhouse gas emissions calculation rules in fiscal 2019, emissions are recalculated back to previous years. 

Breakdown of GHG emissions by scope (Market-basis)

Breakdown of GHG emissions by scope (Market-basis)

Energy consumption

Energy consumption

  • * Sites where energy consumption data were collected: Fujiyama Plant, Joto Plant (current, Joto Pharmaceutical Product Development Center), Yamaguchi Plant (added from fiscal 2018), Minase Research Institute, Fukui Research Institute, Tsukuba Research Institute, Head Office, sales offices and other offices, etc.
Initiatives for a decarbonized society
Creating a road map for reduction of GHG emissions
  1. Participation in the “Fiscal 2019 Model Project for Supporting Development of CO2 Emission Reduction Plans to Achieve SBT” (sponsored by the Ministry of the Environment of Japan)
    As of the end of March 2020, there were only seven Japanese companies whose GHG reduction targets were classified as the SBTi’s “1.5°C target.” To achieve our challenging GHG reduction targets, we have participated in the “Fiscal 2019 Model Project for Supporting Development of CO2 Emission Reduction Plans to Achieve SBT” (sponsored by the Ministry of the Environment of Japan) and created a highly feasible GHG reduction road map, incorporating new technologies based on the research and advice of experts.
Promoting energy conservation
  1. Adopting those of Top Runner Equipment, which is aimed at reducing GHG emissions, at the time of replacement (replacing fluorescent lights with LEDs, replacing heat source equipment with module-type heat pump chillers, etc.)
  2. Reviewing and adjusting the operating hours and temperatures of the equipment
  3. Implementing the Cool Biz and Warm Biz clothes initiative advocated by the Japanese Ministry of the Environment.
  • photoModule-type heat pump chiller (Minase Research Institute)
Introducing renewable energy
  1. Introducing and operating solar power generation facilities: Head Office building (fiscal 2003), Minase Research Institute (fiscal 2015), Tokyo Building (fiscal 2017)
  2. Purchasing electricity under a renewable energy-based electricity menu contract: Minase Research Institute (fiscal 2019)
  3. Purchasing Green Energy Certificates (from fiscal 2018) and J-Credits (from fiscal 2019) We are promoting the use of renewable energy by purchasing certificates for electricity generated by renewable energy (Green Energy Certificates) and J-Credits.
  • photoSolar panels at the Minase Research Institute
  • photoSolar power monitoring system at the Minase Research Institute
  • photoGreen Energy Certificate
Fuel conversion
  1. Completion of fuel conversion from heavy oil and kerosene to city gas and LNG at all plants and research institutes
    (GHG emissions from the combustion of fuels to produce energy depends on the source of the fuel. GHG emissions from city gas/LNG combustion are less than those from heavy oil/kerosene.)
Power load leveling
  1. Shifting the peak power usage from daytime hours to nighttime through the use of the nighttime heat storage system and cogeneration system
  2. Introducing large-capacity power storage system (NAS battery system) at the Yamaguchi Plant
  • photoLarge-capacity power storage system (Yamaguchi Plant)
Energy management
  1. Establishing an energy management system with a view to the introduction of FEMS (factory energy management system) and BEMS (building energy management system)
    Although we have always measured energy consumption at our production plants and research institutes, we are making steady efforts to upgrade our energy management systems, with a view to the introduction of FEMS or BEMS.
External evaluation of our climate change-related efforts
  1. In the survey conducted by the UK-based CDP on climate change, we were selected as an A-List company, the highest rating, for two consecutive years (in fiscal 2019).
  2. We won an award in the Activity Implementation and Promotion category of the Minister of the Environment’s 2019 Commendation for Global Warming Prevention Activity (the Ministry of the Environment).
  3. We were introduced in a collection of case studies on energy efficiency & conservation (published by the Kansai Bureau of Economy, Trade and Industry) as among specified businesses who have remarkable achievements in various aspects of energy conservation.
  4. Under the Act on the Rational Use of Energy (Energy Conservation Act), we have received the highest S rank for four consecutive years in corporate energy conservation excellence.

See the External Evaluation section for details.

GHG Emissions in the Value Chain (Scope 3)

ONO divides GHG emissions in the value chain (Scope 3) into 15 categories under the Ministry of the Environment’s guidelines, and since FY2014 it has been calculating them for sites in Japan. 

Category FY2018 emissions
(10.0 thousand tons-CO2)
FY2019
emissions
(10.0 thousand tons-CO2)
Calculation method Notes
Purchased goods and services 0.81 ―* GHG emissions(scope 1,2) volume of our raw materials and major materials suppliers (accounting for 80% or more of our raw materials or materials purchase costs) multiplied by the ratio of the sales to ONO out of the total sales of the supplier. Ratios for other business suppliers are assumed to follow the same trend as for major suppliers, and are calculated using the ratio of GHG emissions to the transaction amount at major suppliers.(The calculation method has changed since FY2017. Please see the ESG Data for details.) Covers production and research sites
*Figures for FY2019 are not calculated because our major business partners had not published their CSR reports at the time of calculation.
Capital goods 6.04 2.69 Amount of capital investment, multiplied by emission factor※6
Fuel- and energy-related activities not included in scope 1 or scope 2 0.15 0.28 Amount of non-renewable electricity purchased, multiplied by emission factor※6
Upstream transportation and distribution 0.01 0.01 Transport data on deliveries from ONO factories and distribution centers to destinations, multiplied by emission factor※6
Waste generated in operations 0.03 0.03 Weight of each type of industrial waste generated, multiplied by emission factor※6
Business travel 0.23 0.40 Business trip allowances, multiplied by emission factor※6 Covers travels by airplane or Shinkansen bullet train
Employee commuting 0.04 0.05 Employees’ commuting costs, multiplied by emission factor※6
Upstream leased assets 0.33 0.29 Cost of gasoline for leased company cars, multiplied by emission factor※6
Downstream transportation and distribution 0.53 ―* GHG emissions stated in CSR reports on ONO’s major pharmaceutical wholesalers, multiplied by percentage of ONO net sales included in all net sales of major pharmaceutical wholesalers *Figures for FY2019 are not calculated because our major pharmaceutical wholesalers had not published their CSR reports at the time of calculation.
Processing of sold products Not relevant Not relevant ONO makes only finished products
Use of sold products Not relevant Not relevant No energy is consumed during the use of ONO products
End-of-life treatment of sold products 0.02 0.02 Weight of each type of ONO product container or packaging disposed of as waste, multiplied by emission factor※6
Downstream leased assets 0.03 0.03 Floor space of asset (building) owned and rented out categorized by use, multiplied by emission factor※6
Franchises Not relevant Not relevant ONO does not operate franchises
Investments Not relevant Not relevant There is no investment involving large amounts of greenhouse gas emissions.
  • ※6 Figures stated in the “Emission Factor Database on Accounting for Greenhouse Gas Emissions throughout the Supply Chain (Ver. 2.6 in FY 2018 and ver. 3.0 in FY 2019),” published by the Ministry of the Environment, Government of Japan.
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Toward creating a water recycling-oriented society

The availability of high-quality fresh water is one of the important factors for us in conducting business activities. We are making efforts for reducing water use so as to mitigate the load on limited water resources. As for water risks, the Environmental Management Committee leads and conducts surveys on the risks, and identifies/analyzes/evaluates the business risks. Risk evaluation at important sites that use large volumes of water is conducted using the WRI AQUEDUCT risk assessment tool of the World Resource Institute. As of the end of FY2019, none of our company’s important sites operate or conduct water intake in areas categorized as being at “extremely high risk” for water stress. We continue to operate in areas where it is possible to use good quality fresh water as needed for business operations, and our business activities are therefore not affected. While grasping the volumes of water use at our important sites, we confirm that our water supply and emission pipes are free of leakage, and endeavor to use appropriate amounts of water. In fiscal 2019, we received an improved rating of “A-” (up from B in fiscal 2018) in the Water Security survey conducted by CDP, a U.K.-based nonprofit organization.

Analysis and Evaluation of Water-related Risk and Opportunity
Risk Factors Period Details Impact Management Method
Regulatory risk Restrictions on use of good quality fresh water Long-term Use of good quality fresh water becomes impossible, restricting production and research activities. Increase in operating costs
  1. Assurance of pharmaceutical products supplied
  2. Risk diversification due to establishment of new facilities
Risk from physical impact Rationing/shortage of good quality fresh water Long-term Use of good quality fresh water becomes impossible, restricting production and research activities. Increase in operating costs
  1. Assurance of pharmaceutical products supplied
  2. Risk diversification due to establishment of new facilities
Decline in water quality Long-term Use of good quality fresh water becomes impossible, restricting production and research activities. Increase in operating costs
  1. Investment in plant and equipment
  2. Water quality analysis and management
  Flooding and/or heavy rain disaster   Facilities are flooded due to flooding or heavy rainfall in the vicinity of a production site. Increase in operating costs
  1. Assurance of pharmaceutical products supplied
  2. Investment in plant and equipment
Other risks Reputation risk Short-term A poor external evaluation of our handling of water exerts an adverse impact on the share price. Decline in share price Appropriate external publicity on the results of our activities
Opportunity Factors Period Details Impact Management Method
Opportunity from physical impact Water shortage Long-term Demand increases for existing pharmaceutical products that can be used without water, or new drug development opportunities lead to positive impact on revenue. Increased demand for existing drugs and services, new drugs and services
  1. Changes in formulation of existing pharmaceutical products
  2. New Drug Development

We have posted details such as the water-related risks and opportunities, water intake and wastewater volumes at CDP Water. They can be confirmed at the CDP website (A CDP ID is required). We responded to CDP Water 2019 in Japanese. This PDF is a translation of our response into English.

Progress towards a water recycling society

To achieve our medium-term environmental target of reducing water resource consumption (water intake) per production volume unit by 15% by fiscal 2030 (compared to fiscal 2017), we are working vigorously to reduce water consumption in business activities. The volume of water intake in fiscal 2019 was 296,700 m3, a 14.7% reduction (51,300 m3) compared to fiscal 2018. These results are due to our efforts to reduce water intake, including optimization of the number of operating cooling towers for production equipment at the Yamaguchi Plant. Also, a recycled water system has been installed at the Fukui Research Institute to reduce water use. Furthermore, water-saving sanitary equipment (water-saving coolant spray nozzle, upgraded boiler wastewater neutralization system, etc.) has been installed at our relatively newly constructed facilities, including production plants, research institutes and the Tokyo Building.
The water intake per production volume unit in fiscal 2019 increased by 32.3% compared to fiscal 2017. This is due to a decrease in the number of boxes produced, which is used as a denominator for calculation.

Water intake (water resource consumption) and water intake per production volume unit

Water intake (water resource consumption) and water intake per production volume unit

Wastewater

Wastewater

  • * Sites where data on water consumption and wastewater volume were collected: Fujiyama Plant, Joto Plant (the present Joto Pharmaceutical Product Development Center), Yamaguchi Plant (added from fiscal 2018), Minase Research Institute, Fukui Research Institute, Tsukuba Research Institute, Head Office, sales offices and other offices, etc.
    From FY2019, the head office and other domestic offices have been added retroactively to FY2017.
Water intake and wastewater volume by site (unit: 10.0 thousand m3)
Site River in the area Wastewater drainage destination 2015 2016 2017 2018 2019
Water intake volume Wastewater volume Water intake volume Wastewater volume Water intake volume Wastewater volume Water intake volume Wastewater volume Water intake volume Wastewater volume
Fujiyama Plant Fuji River River 20.55 13.02 19.57 12.89 20.56 14.86 24.02 17.84 18.50 14.51
Joto Plant (now Joto Pharmaceutical Product Development Center) Yodo River Sewerage 1.09 1.09 0.72 0.72 0.55 0.55 0.60 0.60 0.51 0.51
Yamaguchi Plant Fushino River River  -  -  -  -  -  - 0.82 0.82 1.81 1.81
Minase Research Institute Yodo River Sewerage 4.28 4.28 4.52 4.52 5.13 5.13 4.12 4.12 3.91 3.91
Fukui Research Institute Kuzuryu River Sewerage 5.37 1.13 3.94 0.75 3.87 0.52 3.13 0.50 2.73 0.57
Tsukuba Research Institute Lake Kasumigaura Sewerage 1.07 1.07 1.09 1.09 0.81 0.81 0.60 0.60 0.71 0.71
Head Office and other business sites (including some tenants) in Japan Rivers/Lake in the areas where major business sites are located※7 Sewerage 1.64 1.64 1.51 1.51 1.50 1.50
total   32.36 20.58 29.84 19.97 32.56 23.51 34.80 25.99 29.67 23.52
  • ※7 Rivers/Lake in the areas where major business sites are located: Toyohira River, Okura River, Arakawa River, Sakawa River, Kiso River, Lake Biwa, Yodo River, Ota River, Yoshino River, Naka River
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Toward creating a resource recycling society

Regarding resource recycling as one of the top priorities in our business activities, we are promoting various activities on a company-wide basis. The Environmental Management Committee takes the lead in conducting surveys, analyses and evaluations and promoting environmental protection activities toward building a sustainable society.

Progress toward a resource recycling society

In fiscal 2019, the final landfill disposal rate of industrial waste was 0.05% against the medium- to long-term targets, achieving zero emissions※8. Also, the volume of industrial waste per production volume unit decreased by 11.7% compared to fiscal 2017. The total volume also decreased by 15.6 tons from the previous year. These results are due to waste reduction activities, including thorough waste separation.

  • ※8 ONO defines zero emissions as the condition where the final landfill disposal rate is kept at 1.0% or less as a result of recycling industrial waste generated from business activities. (Final landfill disposal rate = amount of landfill disposal ÷ amount of industrial waste x 100). Note that certain materials, including some hazardous substances and waste reagents, are excluded from the calculation for zero emissions because their safe disposal is a higher priority.

Industrial waste: Final landfill disposal volume and final landfill disposal rate

Industrial waste: Final landfill disposal volume and final landfill disposal rate

  • * Sites where data on final landfill disposal volume and final landfill disposal rate of industrial waste was collected: Fujiyama Plant, Joto Plant (the present Joto Pharmaceutical Product Development Center), Yamaguchi Plant (Added from fiscal 2018), Minase Research Institute, Fukui Research Institute, and Tsukuba Research Institute.
  • * Of FY2017 final industrial landfill disposal volume in, the amount of waste (5.8 tons) from renovation of the Joto Plant (the present Joto Pharmaceutical Product Development Center) was included.

Volume of industrial waste per production volume unit (kg/production unit volume)

  FY2017 FY2018 FY2019 FY2030
(Target)
Volume of industrial waste per production volume unit 0.197 0.128 0.174 0.167
  • Of FY2017 industrial waste volume, the amount of waste (25.64 tons) from renovation of the Joto Plant (the present Joto Pharmaceutical Product Development Center) was excluded from the calculation.

Industrial waste volume and special management industrial waste volume (hazardous waste volume)

Industrial waste volume and special management industrial waste volume (hazardous waste volume)

  • Sites where data on industrial waste volume and special management industrial waste volume (hazardous waste volume) was collected: Fujiyama Plant, Joto Plant (the present Joto Pharmaceutical Product Development Center), Yamaguchi Plant (Added from fiscal 2018), Minase Research Institute, Fukui Research Institute, and Tsukuba Research Institute
  • Special management industrial waste (hazardous waste) is defined under the Waste Disposal and Public Cleansing Law as waste that has properties of explosiveness, toxicity, infectiousness, and/or possibly causing damage to human health or the living environment. We strive to manage this type of waste properly.
Efforts toward a resource recycling society

We inspect our intermediate processing contractors and final disposal contractors to make sure that our industrial wastes are processed and disposed of properly. As part of efforts to increase recycling of industrial waste, we also ask certified heat recovery service providers to conduct thermal recycling and choose companies involved in materials recycling as our final waste disposal contractors.

Recycling of product containers and packaging materials

Upholding the reduction of environmental impact of our business activities as one of our medium- and long-term goals, we are working to reduce our environmental impact by changing container materials and packaging styles. In fiscal 2019, we changed the packaging material for some products from plastic to paper to reduce post-disposal environmental impact. Products with this new packaging have been sold from fiscal 2020.

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In addition, pursuant to the Containers and Packaging Recycling Law, some of the containers and packaging materials for the products we sell are recycled. 

FY2019(Unit: tons)
  Container and packaging usage Obligatory recycling amount
Plastic 162.8 31.2
Paper 200.9 1.5
Glass (colorless) - -
Glass (brown) 0.3 -
Commissioning fee paid for recycling:1,546 thousand yen
Management of Chemicals

ONO is committed to reducing chemical emissions to the lowest possible level not only in compliance with laws and regulations but also in recognition that these emissions may impact human health and the ecosystem.

Compliance with the PRTR Law

In FY2019, the Minase Research Institute made reports on Class I designated chemical substances. These chemicals are managed in appropriate amounts and in compliance with the PRTR Law. For details, please see the ESG data.

Amount of Chemical Substances Handled

In FY2019, the volume of Class I designated chemical substances under the PRTR Law that we handled remained extremely low, at just 11.49 tons. This is partly because ONO does not conduct any synthesis of pharmaceutical substances. We will continue to make every possible effort to reduce the amount that we handle and to keep down the amount released.

Handling of PCBs

ONO manages waste polychlorinated biphenyls (PCBs) properly in accordance with the Law Concerning Special Measures for Promotion of Proper Treatment of PCB Waste in Japan. The company submits a report on the storage and disposal of waste PCBs to the Osaka municipal government every year.

Site Status Type Number of units
Joto Plant (current, Joto Pharmaceutical Product Development Center) Stored Fluorescent lamp 0
Disposed※9 Condenser 558
Minase Research Institute Disposed※9 Condenser 2
  • ※9 Joto Plant (current, Joto Pharmaceutical Product Development Center) in FY2007 and in FY2019 and Minase Research Institute in FY2014 delivered PCBs to the Japan Environmental Storage and Safety Corporation, a PCB waste treatment service provider.
Fluorocarbon Management

In April 2015, amendments to the Act on Rational Use and Proper Management of Fluorocarbons came into force, and the reporting of leakage from and inspection of air conditioning equipment and refrigerators/freezers for business use became obligatory. Therefore, we conduct activities such as the identification of such equipment, simple inspections / periodic inspections, generation of records, and calculations of leakage. In FY2019, the calculated leakage of fluorocarbons was 443.56 tons-CO2. We will continue to prevent leakage and promote the introduction of non-CFC (chlorofluorocarbon) and low-GWP (global-warming potential) equipment when updating equipment.

Prevention of Air Pollution and Water Pollution

The production sites comply with the Japanese Air Pollution Control Act, the PRTR Law, agreements on pollution prevention with local governments, and other related laws and regulations in order to reduce environmental impact. They periodically measure the concentration of exhaust gas and noise from boilers and CGSs as well as wastewater from the plants, in accordance with related laws and other regulations, in order to ensure that levels are within regulatory limits. They also strive to reduce environmental risk. The PDCA cycle is followed in the plants, and employees are provided with the necessary environmental management training in operations in which there is a risk of environmental impact. Emergency drills are also conducted regularly. These drills use scenarios such as high concentrations of soot due to faulty equipment and leakages of oil into the ground, giving employees practice in the necessary preventative and responsive measures for such situations.
In recent years, extreme weather events are occurring as a result of global warming. We have formulated manuals to prepare for accidents and emergency situations caused by such weather, and we organize training sessions to minimize environmental impacts. In particular, to address any accidents and emergency situations that may cause water or soil pollution, we systematically review and implement the backup and reinforcement of relevant equipment.

Green Purchasing

In December 2004, we started purchasing on a company wide basis-from @office, an online office supply purchasing service provided by Kokuyo Co., Ltd. This service offers a wide range of environmentally friendly office supplies, including Green Mark and Eco Mark certified products, and we use this service to promote green procurement. In FY 2019, 75.7% of the office supplies purchased by ONO were environmentally friendly products.

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ONO PHARMACEUTICAL CO.,LTD., ONO PHARMACEUTICAL CO.,LTD., system

Independent Practitioner's Assurance

As for the categories of environmental information (energy-derived CO2 emissions, energy consumption, CO2 emissions in the value chain (Scope 3), water resource input, water resource emissions, and industrial waste: amount of waste generated/landfilled), each of which is disclosed and indicated with the icon check in our CSR Report 2019, we have received independent assurance so as to bolster the reliability of the information. The Independent Assurance Report is reprinted on page 83.

ONO PHARMACEUTICAL CO.,LTD., ONO PHARMACEUTICAL CO.,LTD., system
Environment :
Global Environment Policy/Environment Challenging Ono Vision(ECO VISION 2050)

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