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.
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.
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.
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.
We 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.
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.
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.
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.
We appoint a member of the Board of Directors in charge of the environment as the officer 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 FY2019, 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.
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 member of the Board of Directors 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.
|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).|
|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.
|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.|
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.
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 (FY2019 target: at least a 8.4% reduction compared to FY 2017). In FY2019, vigorous efforts were made toward the medium-term greenhouse gas reduction target (target year: FY 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 FY2014, 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.
We have incorporated carbon pricing into our environment-related investment decisions.
In FY2019, 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 FY2005, achieving our medium-term GHG emission reduction target (target year: FY2020). (When the amount of increase due to the operation of the Yamaguchi Plant, newly established in FY2018, is included, GHG emissions for FY2019 were 23,700 tons, a 11.2% reduction compared to FY2005.)
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 FY2019 were 27,300 tons, a 8.4% reduction compared to FY2017. Regarding the use of renewable energy, in line with the RE100 international initiative (we joined in June 2020), we worked to promote the use of renewable energy and achieved the FY2019 target (increasing the share of renewable energy in total energy consumption by at least 8.4%). (The renewable energy usage rate in FY2019 was 11.2%.)
Since we achieved the medium-term GHG emission reduction target in FY2019, from FY2020 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.
Energy-derived GHG emissions (Scopes 1+2)
GHG emissions (Scopes 1+2)
Breakdown of GHG emissions by scope (Market-basis)
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.
See the External Evaluation section for details.
GHG emissions in the value chain (Scope 3) have been devided into 15 categories under the Ministry of the Environment’s guidelines, and since FY2014 it has been calculating them for sites in Japan.
(10 thousand tons-CO2)
(10 thousand tons-CO2)
|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||―|
|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||―|
|Upstream transportation and distribution||0.01||0.01||Transport data on deliveries from ONO factories and distribution centers to destinations, multiplied by emission factor||―|
|Waste generated in operations||0.03||0.03||Weight of each type of industrial waste generated, multiplied by emission factor||―|
|Business travel||0.23||0.40||Business trip allowances, multiplied by emission factor||Covers travels by airplane or Shinkansen bullet train|
|Employee commuting||0.04||0.05||Employees’ commuting costs, multiplied by emission factor||―|
|Upstream leased assets||0.33||0.29||Cost of gasoline for leased company cars, multiplied by emission factor||―|
|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||―|
|Downstream leased assets||0.03||0.03||Floor space of asset (building) owned and rented out categorized by use, multiplied by emission factor||―|
|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.|
|Total||8.22||―||―||Figures for FY2019 are not calculated because our major pharmaceutical wholesalers had not published their CSR reports at the time of calculation.|
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 FY 2019, we received an improved rating of “A-” (up from B in FY 2018) in the Water Security survey conducted by CDP, a U.K.-based nonprofit organization.
|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||
|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||
|Decline in water quality||Long-term||Use of good quality fresh water becomes impossible, restricting production and research activities.||Increase in operating costs||
|Flooding and/or heavy rain disaster||Long-term||Facilities are flooded due to flooding or heavy rainfall in the vicinity of a production site.||Increase in operating costs||
|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||
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.
To achieve our medium-term environmental target of reducing water resource consumption (water intake) per production volume unit by 15% by FY 2030 (compared to FY 2017), we are working vigorously to reduce water consumption in business activities. The volume of water intake in FY 2019 was 296,700 m3, a 14.7% reduction (51,300 m3) compared to FY 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 fFY 2019 increased by 32.3% compared to FY 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
|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|
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.
In FY 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 FY 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.
Industrial waste: Final landfill disposal volume and final landfill disposal rate
Volume of industrial waste per production volume unit (kg/production unit volume)
|Volume of industrial waste per production volume unit||0.197||0.128||0.174||0.167|
Industrial waste volume and special management industrial waste volume (hazardous waste volume)
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.
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 FY 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 FY 2020.
In addition, pursuant to the Containers and Packaging Recycling Law, some of the containers and packaging materials for the products we sell are recycled.
|Container and packaging usage||Obligatory recycling amount|
|Commissioning fee paid for recycling：1,546 thousand yen|
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 FY2019, 75.7% of the office supplies purchased by ONO were environmentally friendly products.
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.
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 Law concerning Pollutant Release and Transfer Register (PRTR). For details, please see the ESG data.
In FY2019, the volume of Class I designated chemical substances under the Law concerning Pollutant Release and Transfer Register (PRTR) that we handled remained extremely low, at just 11.49 tons. This is partly because we 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.
We 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|
|Minase Research Institute||Disposed※9||Condenser||2|
The production sites comply with the Air Pollution Control Act, the Law concerning Pollutant Release and Transfer Register (PRTR), 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.
As for the categories of sustainability information (environment : GHG emissions, energy consumption, GHG emissions in the value chain (Scope 3), water intake volume, wastewater volume (including drainage destination), industrial waste volume, special management industrial waste volume (hazardous waste volume), and final landfill disposal volume of industrial waste, society : number of lost-time injuries and frequency rate, number of occupational illnesses and frequency rate), each of which is disclosed and indicated with the icon in our CSR Report 2020, we have received independent assurance so as to bolster the reliability of the information. The Independent Assurance Report is reprinted on page 107.
Global Environment Policy Environmental Vision Medium- to Long-t...
Under the corporate philosophy "Dedicated to Man's Fight against Disease an...
ONO has established a medium- and long-term environmental challenge vision ...
In order to realize “ECO VISION 2050”, we have defined three important item...
The realization of a decarbonized society is one of our key priorities in o...
The availability of high-quality fresh water is one of the important factor...
Regarding resource recycling as one of the top priorities in our business a...
Management of Chemicals ONO is committed to reducing chemical emissions ...
As for the categories of sustainability information (environment : GHG emis...
The Results (or Progress) of the Work Environmental Initiatives ...
Every year, we assess the results (or progress) against the targets. ...
SBT Initiative (Science Based Targets initiative） Our medium- to lon...
Annual inputs and outputs are grasped on a regular basis to use as referenc...
We have established an environmental management system in which the Preside...
We use an integrated indicator that can measure the reduction in environmen...
Environmental investments made at our production and research sites during ...