We have witnessed the increasing impact of global warming, and battling this threat has become one of our most important collective challenges in the international society. The Paris Agreement from COP 21 sets out a global action plan to limit global warming to less than 2°C compared to temperatures before the Industrial Revolution, with the target, for all intents and purposes, of completely halting the increase in human-generated greenhouse gases. Based on our Global Environment Policy, we have formulated an environmental vision under which we will strive to reduce greenhouse gas emissions from business activities on a company-wide basis. In this and other ways, we will fulfill our corporate social responsibility by prioritizing the environment in all business areas and by contributing to the realization of a sustainable 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.
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.
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 target, "below 1.5 ° C". For more information, please see here (Environmental Initiatives). As for energy, we will strive to reduce the basic unit while increasing the use of renewable energy. (Every year, we reduce the basic unit of energy consumption by 1% or more compared to the previous year, following to the Energy Saving Act).
Reduce water resource consumption (water intake) by 15% per production volume unit in FY2030 (compared to FY 2017).
We regard the realization of a decarbonized society to be a key priority in conducting our business activities, and we undertake various initiatives accordingly. Regarding the risks and opportunities associated with climate change, our Environmental Management Committee is at the core of our work toward achieving a sustainable society through environmental conservation, conducting analyses with reference to RCP scenarios and performing evaluations.
|Risk factor||Term||Description||Impact||Management approach|
|Regulatory risk||Emissions reporting system||Short-term||Additional cost incurred to achieve energy consumption reduction mandated by laws and regulations.||Increase in operating costs||Formulation and implementation of a capital investment plan including high-efficiency equipment to replace current equipment|
|Uncertainty due to new regulations||Long-term||Increasing cost of raw materials in the case that new regulations on climate change are introduced and suppliers of raw materials follow them||Increase in operating costs||Indirect involvement in revisions to laws concerning the mitigation of climate change as a member of the Japan Pharmaceutical Manufacturers Association, an industry association. Investigation of modifications or other measures regarding purchasing procedures in case of procurement cost changes|
|Risk due to physical repercussions||Changes in highest/lowest temperatures||Medium-term||Delay in research and development activities and negative impacts on product shipments in case of failure of temperature control caused by changes in the highest and lowest temperatures||Increase in operating costs||Pursuit of high efficiency, for example, by spraying water onto outdoor units of cooling equipment|
|Changes in precipitation patterns||Medium-term||Necessity of taking measures against possible shutdown of our operations caused by abnormal local weather such as strong wind and heavy rain||Increase in operating costs||Introduction of emergency power generators at main bases and periodic maintenance for them|
|Other risk||Reputation risk||Short-term||Adverse effects on our stock price in case of negative external evaluations of our efforts made against climate change||Decline in stock price||Appropriate disclosure of the results of actual activities to the public|
|Opportunity factor||Term||Description||Impact||Management approach|
|Opportunity due to regulations||Emissions reporting system||Short-term||Reduction of energy costs with measures implemented to achieve energy consumption reduction mandated by laws and regulations||Reduction in operating costs||Formulation and implementation of a capital investment plan including high-efficiency equipment to replace current equipment|
|Opportunity due to physical effects||Changes in average temperature||Medium- to long term||In case of changes in prevalent diseases due to an increase in average temperature, an increase in demand for existing pharmaceuticals against such diseases, or favorable effects on our profits from developing and selling new drugs||Increase in demand for existing products/services
|Increase in efficacy of existing pharmaceuticals
Enhancement of new compound library
|Other opportunity||Reputation opportunity||Short-term||Positive impact on stock price in case of more positive external evaluation of our responses to climate change||Rise in stock price||Appropriate disclosure of the results of actual activities to the public|
We have incorporated carbon pricing into our environment-related investment decisions.
We are making various efforts to control the greenhouse gas emissions generated by our business activities toward two goals: our medium-term environmental target, “to reduce CO2 emissions in FY2020 by 23% or more from that in FY2005 (the target is energy-derived CO2 emissions released from production and research sites),” and our short-term target, “to reduce the energy consumption factor at production and research sites by 1% or more from the previous fiscal year (the number of boxes produced is used as a denominator for calculating the factor).” In FY2018, CO2 emissions from our production and research sites were 25,200 tons on a location basis, and decreased by 5.6% compared to 26,700 tons in FY2005. Although there was an increase from 24,000 tons in the previous fiscal year, the reason for it was the establishment of the new Yamaguchi Plant. Per-unit energy consumption worsened by 6.28% compared to the previous fiscal year. The cause of this was a change in our company’s main product volume capacity (conversion to larger volume products), which led to a reduction in production volume.
In addition, new mid- to long-term reduction targets at all operational sites were formulated as: “Reduction of greenhouse gas emissions at Scope 1 and 2 of 55% by FY2030 and to zero by FY2050 (relative to FY2017). At Scope 3, greenhouse gas emissions reductions by 30% by FY2030 and 60% by FY2050 (relative to FY2017).” Progress toward these targets in FY2018 was made with a 5.5% reduction (relative to FY2017) at Scope 1 and 2 on a market basis2).
Energy-derived CO2 Emissions (Scope1+2)
Energy-derived CO2 Emissions (Scope1+2)
Break down of energy-derived CO2 emissions by scope (Market-basis)
As efforts for energy conservation and reducing greenhouse gas emissions, we took proactive measures in FY2018, too, including updating our lighting from fluorescent lights to LEDs and updating heat source equipment to module-type heat pump chillers.
Meanwhile, we continue to promote efforts in both tangible and intangible ways, such as reviewing/adjusting the operating hours of facilities and implementing Cool Biz and Warm Biz. We will continue our efforts for energy conservation and reducing greenhouse gas emissions through measures such as adopting Top Runner Equipment and considering the introduction of renewable energy when updating old equipment.
During the last fiscal year, we were selected by the CDP of Britain for inclusion in its “A List,” the highest evaluation rating under the climate change survey it administers. Domestically, we have been designated under Japan’s Act on Rationalization of Energy Use (the Energy Conservation Law) as a designated enterprise that excels in progress with energy conservation efforts. We have received the S Rank that represents the highest evaluation under the law for four consecutive years. Our global warming prevention measures have also been singled out as particularly outstanding by the government of Osaka Prefecture, which conferred top honors on us at their “Osaka Stop Global Warming Awards” held in FY2018.
Solar power, a form of renewable energy, is an effective way to reduce greenhouse gas emissions, since it does not need to release any when generating electricity. We introduced solar power generation facilities in our headquarters building in FY2003, the Minase Research Institute in FY2015, and the New Tokyo Building in FY2017.
Since FY2018, we have been purchasing Green Energy Certificates, and have used 2.9 million KWh of renewable energy.
Through the purchase certification that a given unit of power was generated as renewable energy, Green Energy Certificates enable the purchaser to determine on their own that the electric power they use is renewable.
By switching from fuels such as heavy oil and kerosene to utility gas and natural gas (LNG), the same amount of energy can be obtained but with fewer CO2 emissions. Therefore, switching to these cleaner fuels results in fewer greenhouse gas emissions.
In our plants and research institutes, we are trying to reduce CO2 emissions by replacing heavy oil / kerosene with city gas and LNG. All fuels were converted to city gas or LNG at other bases that used to use heavy oil and kerosene by the end of FY2013.
In Japan, due to stoppages of nuclear power plants, the revised Energy Saving Act, which went into effect in FY2014, included provisions for cutting peak electricity usage in the summer and winter―a process known as power load leveling. We have been promoting electricity demand leveling by implementing a peak shift from daytime electricity use with a cogeneration system (CGS) in addition to a nighttime heat storage system, and modifying the method of heating water for air conditioning (switching from air-cooled chillers to steam boilers). Peak shift and NAS battery system as a BCP measure was implemented at the new plant built in Yamaguchi Prefecture.
In order to successfully carry out measures to achieve energy efficiency and power load leveling and to reduce CO2 emissions, it is helpful to gather data on energy usage from various facilities, analyze them, and use them to reduce and adjust the load. Through a monitoring system, graphs and flow charts are used to put data into an easy-to-grasp form so that the data can be used in the most effective way.
While the production sites and the research institutes have conventionally measured energy use, we are gradually moving ahead with upgrading our energy management systems, which includes the possible adoption of a comprehensive FEMS (factory energy management system) and a BEMS (building energy management system).
ONO divides CO2 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||FY2017 emissions (10.0 thousand tons-CO2)||FY2018 emissions (10.0 thousand tons-CO2)||Calculation method||Notes|
|Purchased goods and services||0.85||―*||CO2 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 CO2 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 FY2018 are not calculated because our major business partners had not published their CSR reports at the time of calculation.|
|Capital goods||5.26||6.04||Amount of capital investment, multiplied by emission factor*||―|
|Fuel- and energy-related activities not included in scope 1 or scope 2||0.15||0.15||Amount of 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||0.25||0.23||Business trip allowances, multiplied by emission factor*||Covers travels by airplane or Shinkansen bullet train|
|Employee commuting||0.04||0.04||Employees’ commuting costs, multiplied by emission factor*||―|
|Upstream leased assets||0.35||0.33||Cost of gasoline for leased company cars, multiplied by emission factor*||―|
|Downstream transportation and distribution||0.53||―*||CO2 emissions stated in ONO’s CSR report on major pharmaceutical wholesalers, multiplied by percentage of ONO net sales included in all net sales of major pharmaceutical wholesalers||*Figures for FY2018 are not calculated because our major pharmaceutical wholesalers had not published their CSR reports at the time of calculation.|
|Processing of sold products||Not calculated||Not calculated||―||ONO makes only finished products|
|Use of sold products||Not calculated||Not calculated||―||No energy is consumed during the use of ONO products|
|End-of-life treatment of sold products||0.01||0.01||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 calculated||Not calculated||―||ONO does not operate franchises|
|Investments||Not calculated||Not calculated||―||There is no investment involving large amounts of greenhouse gas emissions.|
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 FY2018, 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.
|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||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.
|Facility name||River in the area||2014||2015||2016||2017||2018|
|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||24.32||16.95||20.55||13.02||19.57||12.89||20.56||14.86||24.02||17.84|
|Joto Pharmaceutical Product Development Center||Yodo River||1.25||1.25||1.09||1.09||0.72||0.72||0.55||0.55||0.60||0.60|
|Yamaguchi Plant||Kanno River,Yura River||-||-||-||-||-||-||-||-||0.82||0.82|
|Minase Research Institute||Yodo River||5.48||5.48||4.28||4.28||4.52||4.52||5.13||5.13||4.12||4.12|
|Fukui Research Institute||Kuzuryu River||5.58||1.36||5.37||1.13||3.94||0.75||3.87||0.52||3.13||0.50|
|Tsukuba Research Institute||Kasumigaura||1.22||1.22||1.07||1.07||1.09||1.09||0.81||0.81||0.60||0.60|
Base units for water usage volume (m3/production unit volume)
|Base units for water usage volume||0.096||0.104|
In newly constructed production sites, research sites, the Tokyo Building, and other sites, we use water-saving sanitary equipment. For existing buildings, we are also making efforts for reducing water use, such as installing water-saving washers in faucets. At Minase Research Institute in FY2018, the water coolant spray nozzle of an air conditioning heat source device was switched with a water-saving nozzle to improve the thermal efficiency. The result was a summertime water volume use savings of approximately 2,000m3. In addition, at Tsukuba Research Institute, boiler waste water neutralization equipment was updated to affect a coolant water consumption savings of approximately 2,100m3. Other efforts included installation of a recycled water system at the Fukui Research Institute, and the annual water use there is 16,067m3, which is 4.6% of our total water use.
We regard the recycling of resources in the course of our business activities to be a crucial priority item, and are moving forward with a range of companywide efforts. The Environmental Management Committee plays a central role in conducting surveys, analyses and evaluations to make progress toward achieving a sustainable society through environmental conservation.
We are endeavoring to reduce the amount of waste generated by separating and recycling waste based on our waste management regulations and waste separation rules as we move forward with companywide efforts to reduce the amount of final industrial waste processing.
We continued to achieve zero emissions3) in FY2018, and will make efforts to maintain zero emissions.
Industrial waste: Amount of the waste generated/landfilled
Base units for industrial waste emissions volume (kg/production unit volume)
|Base units for industrial waste emissions volume||0.197||0.128|
We inspect our intermediate and final processing outsourcing contractors to ensure that our industrial waste is processed appropriately. We also have certified heat recovery service providers conduct thermal recycling, and use processing plants that perform materials recycling as our final processing providers. This is how we are moving toward our aim of recycling industrial waste.
Pursuant to the Containers and Packaging Recycling Law, some of the containers and packaging materials for the products we sell are recycled. In addition, we are working to reduce our environmental impact by changing the materials in our containers and changing the designs of our packaging.
|Container and packaging usage||Obligatory recycling amount|
|Commissioning fee paid for recycling：1,650 thousand yen|
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 FY2018, the Minase Research Institute and the Joto Pharmaceutical Product Development Center made reports on Class I designated chemical substances. These chemicals are managed in appropriate amounts and in compliance with the PRTR Law.
|Substance||Amount handled by the notified facilities||Notified release||Notified transfer||Total of notified release amounts / notified transfer amounts|
|Into the air||Into public waters||Contained in waste||Into public sewage|
|FY2017||FY2018||FY2017 comparison(%)||FY2017||FY2018||FY2017 comparison(%)||FY2017||FY2018||FY2017 comparison(%)||FY2017||FY2018||FY2017 comparison(%)||FY2017||FY2018||FY2017 comparison(%)||FY2017||FY2018||FY2017 comparison(%)|
In FY2017, as in FY2016, the volume of Class I designated chemical substances under the PRTR Law that we handled remained extremely low, at just 10.01 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.
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 Pharmaceutical Product Development Center||Stored||Fluorescent lamp||552|
|Minase Research Institute||Disposed*||Condenser||2|
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 FY2017, the calculated leakage of fluorocarbons was 197.9 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.
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.
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.
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 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.
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...
We regard the realization of a decarbonized society to be a key priority in...
The availability of high-quality fresh water is one of the important factor...
We regard the recycling of resources in the course of our business activiti...
As for the categories of environmental information (energy-derived CO2 emis...
The Results (or Progress) of the Work Environmental Initiatives ...
We review the results (or progress) of the work toward every year. ...
SBT Initiative (Science Based Targets initiative） Our medium- to lon...
Annual inputs and outputs are grasped on a regular basis to use as referenc...
Ono has established an environmental management system in which the Preside...
In terms of the environmental efficiency indexes for FY2018, NOx and CO2 em...
The environmental investment at our production and research sites during FY...