Materiality

Background to Identification of Material Issues

In the belief that sustainable growth for Group companies hinges on accurate assessment of our current situation and the attendant opportunities and risks, ASKA Pharmaceutical Holdings has identified 11 material issues that we believe are particularly important to address on the basis of their relevance to Company businesses and their potential contribution to society. In particular, we believe that contribution to women’s health and contribution to animal health are two material issues that are characteristic of our business and in which we can demonstrate our strengths. By tackling these material issues as a Group, we believe we can also contribute to achievement of the SDGs (sustainable development goals).

Material Issue Identification Process

11 material issues identified

We have identified 11 "material issues" from the perspective of relevance to our business and social contribution.
We recognize “contribution to women’s health” and “contribution to animal health” as distinctive material issues for the Company.
ASKA Pharmaceutical Holdings group will work on each issue and contribute to the achievement of SDGs.

Company-wide Action Plan and KPIs for Material Issues

ESG Material Issues Company-wide Action Plan KPIs SDGs
E Environmental protection and continuous reduction of environmental impact Environmental protection, continuous reduction of environmental impact, and promotion of environmental management 1. Reduction of CO2 emissions: Reduction of 46% from FY2013 (FY2030)
2. Reduction of total waste
3. Improvement in recycling rates
4. Promotion of environmental measures
5. Environmentally conscious business operations
6. Reduction of the use of natural resources
7. Reduction of emissions of environmentally harmful substances (reduction of the impact of nitrogen on the environment by promoting low-protein feed)
S Human resource development Development of human resources to realize growth strategies 1. Number of in-house recruitment system and interdepartmental transfers
(number of career challenges)
2. Number of elective training courses taken: Next-generation leader training Number of selective 　training courses taken: Training to promote the advancement of women (career development of female employees)/other selective training as a measure to support the autonomous learning of employees Expenditures per employee (for education)
3. Promote the implementation of internal and external hierarchical training/selective training (career development of female employees)
Employee engagement Creation of an environment that promotes　understanding of the organization, sympathy, and　motivation to take action, and achievement of work-life　balance that respects the health and diversity of our　employees 1. Optimization of working hours: Promotion of the use of annual paid leave as planned, guidance for promotion of the use of annual leave, provision of annual leave (taken hourly), etc.
2. Health management initiatives
3. Promotion of various working styles: telecommunicating, telework, flextime, short-time work, etc.
4. Implementation of regular stress checks and surveys for engagement
5. Promotion of women’s advancement in active roles (FY2024 target): Percentage of female managers (15%)
Percentage of female medical representatives (20%)
6. Promotion of active roles for diverse human resources
7. Measures to support development of the next generation: Maternity leave
　(utilization rate 100%) / Childcare leave for male employees (utilization rate 100%)
8. Support for medical representatives to take maternity leave and childcare leave (implementation of reintegration programs, social gatherings, etc.)
Creation of innovative products Expansion of pipeline through open innovation 1. Promotion of in-house research themes
2. Reinforcement of alliance activities
Expanding access to healthcare Contributions to specialty areas by taking advantage of our own strengths 1. Provision of comprehensive information on specialty areas (Ob/Gyn, thyroid)
2. Promotion of accurate information and raising disease awareness
3. Early identification of diseases through activities to promote testing and diagnostics
4. Early detection of disease through non-invasive measurement kit
Contribution to women’s health Total support for women’s health 1. Contribution to women’s healthcare by providing products for each of women’s life stages
2. New initiatives for women’s healthcare
3. Promotion of the advancement of women through activities to raise awareness on health and diseases
4. Sexual education initiatives for younger generation
5. Activities to raise awareness among families and partners about women’s health issues
Contribution to animal health Contribution to creation of a society where people and animals can coexist 1. Promotion of animal welfare
2. Development and provision of products useful for maintaining the health of companion animals
3. Development and provision of non-invasive measurement kit products using body hair
4. Promotion of biodiversity
Stable supply of high-quality products
 Ensuring product quality and stable procurement and supply
 1. Reinforcement of supply chain management
2. Implementation of appropriate GMP audits
3. Implementation of appropriate GQP (ensuring that a quality assurance system is in place)
Promotion of proper use of products Ensuring safety and providing information on proper use 1. Implementation of appropriate clinical trials (GCP compliance)
2. Adequate implementation of GVP and RMP
3. Compliance with GVP and guidelines for activities for provision of sales information
4. Dissemination of materials and knowledge to promote proper use, and strengthening product education for medical representatives, etc.
5. Prompt provision of latest information through website
G Corporate governance Establishment of corporate system for continuous growth 1. Fostering corporate culture and climate that respect healthy business ethics
2. Ensuring real equality of shareholders
3. Social contribution activities that lead to solving social issues
4. Constructive dialogue with stakeholders
5. Appropriate disclosure and explanation of management strategy, performance, financial condition, capital policy, etc.
Secure compliance with laws and regulations, enforcement of compliance Thorough maintenance of compliance and fostering an organizational climate that emphasizes reliability 1. Compliance system mainly promoted by Group Compliance Promotion Committee
2. Continuous implementation of preventive measures against serious incidents

Major Material Issue Initiatives Achievements

This section introduces the results of our efforts for material issue KPIs that are of particular interest to our stakeholders.
Our ESG Committee will oversee material issue initiatives and drive improvements.

E:  Environmental protection and continuous reduction of environmental impact
Company-wide Action Plan Environmental protection, continuous reduction of environmental impact, and promotion of environmental management
SDGs
KPIs 1st half of FY2024 activity report
Reduction of CO2 emissions: Reduction of 46% from FY2013 (FY2030)
  • ◎Iwaki Factory CO2emissions (1st half of FY2024):
  • ・CO2-free electricity purchase reflected value: 4,185[t-CO2]　⇒YOY87％(1st half of FY2023: 4,826[t-CO2])
  • ・CO2-free electricity purchase not reflected: 4,677[t-CO2]　⇒YOY92％ (1st half of FY2023: 5,104[t-CO2])
  • ◎The renovation work on the No. 1 formulation building was completed, and full-scale operations began in May. The solar power PPA began operating in June. CO2 emissions decreased compared to the previous year due to the fact that the electricity generated is CO2-free and the ratio of CO2-free electricity purchased from Tohoku Electric Power increased from 16% to 32%.
  • ◎Iwaki Factory CO2 reduction initiatives: 1) Introduction of solar power; 2) Introduction of heat pumps; 3) Purchase of CO2-free electricity; 4) Introduction of Eco-Cross jackets for steam pipes in the machinery room of the 4th formulation building
  • ◎The company-wide energy management meeting was held on July 24th, and the annual and medium- to long-term targets were confirmed.
  • ◎Electricity usage: 444,618 kWh (1st half of FY2023: 432,129 kWh, YOY103%) / Gas usage: 33,210 m3 (1st half of FY2023: 34,200 m3, YOY97%)
  • ◎In June 2024, we acquired FIT non-fossil fuel certificates and renewable energy certificates for the equivalent amount of electricity used by our head office building in FY2023 (836,353 kWh) on the JPEX market. As a result, CO2 emissions from our head office building were reduced by 373 t-CO2.
Reduction of total waste
  • ◎Iwaki Factory Waste Total Amount: FY2021 (157t) FY2022 (137t) FY2023 (159t) FY2024 (1st half: 67t / 1Q: 38t 2Q: 29t / Recycled Amount: 63t / Final Disposal Amount: 4t)
  • The total amount increased due to the increased production volume in the No. 1 production building and the use of container materials (packaging materials, cooling agents, etc.). The breakdown is as follows: 67t, of which 63t were recycled and 4t were disposed of as final waste (raw materials, final products, etc.). The amount of general waste was reduced by 20% by crushing trees and other materials using a crusher.
  • ◎Total waste from the head office building in the 1st half of FY2024: 14.1t (41% of the 34.4t of waste planned for the entire year of FY2024, as submitted by Minato Ward Tokyo)
Improvement in recycling rates
  • ◎Iwaki Plant recycling rate: FY2021 (58%), FY2022 (79%), FY2023 (95%), FY2024 (1Q: 94.7%, 2Q: 93.1%)
  • ◎The recycling rate for the 1st half of the year was 93.9%, and the recycling of valuable resources is progressing smoothly.
  • ◎Percentage of waste from the head office building that was recycled in the 1st half of FY2024: April-September waste recycling rate: 72.9% (10.3t recycled / 14.1t waste)
Promotion of environmental measures
  • ◎As part of our community volunteer activities, we carried out the environmental beautification campaign as part of the Iwaki City Adopt-a-Program every month as planned.
  • ◎Promoting the purchase of green stationery and office supplies at the head office. Green product purchase ratio: 45% (April-September FY2024)
Environmentally conscious business operations
  • ◎Report on initiatives for FY2023 as part of the RE Action initiative “100% Renewable Energy Declaration”.
  • ◎We have changed the packaging of THYRADIN products to be more environmentally friendly.
Reduction of the use of natural resources
  • ◎In the animal health business, the sale of the feed additive phytase has helped to reduce the use of natural resources such as phosphate rock, and the launch of L-histidine hydrochloride has contributed to reducing the amount of fishmeal used in fish feed and protecting natural fishmeal resources.
  • ◎Head Office: Water usage (tap water) 3,913㎥ (1st half of FY2024) (4,133㎥ (1st half of FY2023))
  • ◎A new “Initiatives for Water Resource” page has been added to the website.
    https://www.aska-pharma-hd.co.jp/english/csr/environment/water_resource.html
Reduction of emissions of environmentally harmful substances (reduction of the impact of nitrogen on the environment by promoting low-protein feed)
  • ◎In the animal health business, we are contributing to the reduction of protein content in animal feed by promoting the use of amino acids in animal feed.
S: Human resource development
Company-wide Action Plan Development of human resources to realize growth strategies
SDGs
　　
KPIs 1st half of FY2024 activity report
Number of in-house recruitment system and interdepartmental transfers
(number of career challenges)
  • ◎Internal job postings will be announced internally on a designated date so that they can be reflected in the next round of personnel transfers.
  • ◎In 2024, the company announced an internal recruitment drive (Global Challenge) for overseas language training and study abroad programs under the GRAPE Program (Step 3) to be reflected in the next round of personnel transfers.
Number of elective training courses taken
: Next-generation leader training Number of selective training courses taken
: Training to promote the advancement of women (career development of female employees)/ other selective training as a measure to support the autonomous learning of employees Expenditures per employee (for education)
  • ◎Two training sessions were held for all MRs and selectees to improve their knowledge of infertility treatment.
  • ◎Elective training: “Next Generation Leader Training (APPLE Program) _ 2nd Term” held (Continuation in the 2nd half of the year)
  • ◎Selective training: “Training to improve work efficiency through AI utilization” held (42 participants), “Training on diverse ways of working/diversity” held (18 participants), “Training to develop problem-finding skills” held (20 participants), “Ultimate communication Training" held (25 participants), ‘Self-Branding Training’ held (21 participants), ‘Opening up the future/creating/connecting: training in the art of passing on traditions’ held (11 participants) [a total of 7 training sessions, 137 people attended in total.
Promote the implementation of internal and external level specific training/selective training (career development of female employees)
  • ◎The “Diverse Working Styles/Diversity Training” program, which was implemented as a career development initiative to promote gender diversity, provided an opportunity for young employees who “want to try for a management position in the future” or “are wondering whether they can take on the challenge” to think about their own strengths, what they want to do in the future, and what they need to do to achieve this. On the day, a panel session was held with section chiefs and assistant managers who are candidates for management positions, and tips for working in a way that is true to oneself were shared through questions and consultations.
  • ◎Original in-house sustainability training video: All employees were made aware of ESG-related content (attendance rate: 95.7%, correct response rate on confirmation test: 95.3%), contributing to the promotion of ESG management across the company.
  • ◎We opened the “Sustainability Room” website, which was intended to raise awareness of sustainability throughout the company and share initiatives, and provided the latest information on a regular basis.
S: Contribution to women’s health
Company-wide Action Plan
 Total support for women’s health
SDGs
　　
KPIs 1st half of FY2024 activity report
Contribution to women’s healthcare by providing products for each of women’s life stages
  • ◎We made steady progress in the development of new products in the gynecology field.
  • ◎The company launched a test kit called “Proges” that can measure the amount of female hormones (progesterone).
New initiatives for women's healthcare
  • ◎We have planned a new web seminar for doctors called “Aska Gynecology Talk” to raise awareness of diseases, and have held lectures on menopausal disorders and the HPV vaccine.
  • ◎The CVC Fund is engaged in investment activities targeting the Femtech field, which contributes to women's health and wellbeing. The CVC Fund has made two new investments in Femtech startups.
  • ◎We supported the NPO Fine and participated in the World Fertility Awareness Month event.
Promotion of the advancement of women through activities to raise awareness on health and diseases
  • ◎Shonan Research Center Initiatives: Mint+ pamphlets were distributed to visitors at the iPark Festa on July 19th and 20th.
Sexual education initiatives for younger generation
  • ◎Display of materials for sharing information with patients at seminars on contraception and prevention of sexually transmitted diseases for instructors (SRH seminars) (4 times/480 participants)
  • ◎Mint⁺ teens:
  • ・We have uploaded four articles, including one on what to do when your period coincides with an event, mainly aimed at high school students.
  • ・Mint⁺ teens: Instagram (feeds): 11 posts
  • ・Mint⁺ teens: We've decided to support JK Clinic.
  • ◎Mint⁺: The 2024 edition of the supplementary textbook for high school students' health and physical education (PDF) has been added. (170,000 copies provided in book form / 413 schools)
Activities to raise awareness among families and partners about women’s health issues
  • ◎Implementation of regular health checkups and corporate identity planning (thyroid function tests).
  • ◎Event to simulate menstrual pain
  • ・Participants: 82 (65 men, 17 women)
S: Contribution to animal health
Company-wide Action Plan
 Contribution to creation of a society where people and animals can coexist
SDGs
　　 　　
KPIs 1st half of FY2024 activity report
Promotion of animal welfare
  • ◎An animal experiment management system has been introduced to ensure that animal experiment plans are reviewed more appropriately. (This system will be operational from April 2024.)
Development and provision of products useful for maintaining the health of companion animals
  • ◎In the animal health business, we have produced and are distributing five videos on “TRILOSTANE TABLETS “ASKA”: Medication methods for dogs with Cushing's syndrome who have comorbidities”. We have also produced and distributed academic materials for veterinary medicine professionals (veterinarians and pet nurses).
Development and provision of non-invasive measurement kit products using body hair
  • ◎We are developing a measurement kit that utilizes our strengths in the field of companion animals.
Promotion of biodiversity
  • ◎By providing products for livestock/poultry, pets, and farmed fish, we contribute to the creation of a biodiversity-friendly environment.