Transition risks |
Policies |
Risk of unexpected pandemics due to climate change, as well as drug price reductions that exceed expectations due to the financial pressures on healthcare caused by an aging society with a declining birthrate |
Business growth may stagnate as sales decline due to drug price reductions, which will force the company to reduce R&D and capital expenditures. |
Small |
Small |
Long-term |
Long-term |
ASKA Pharmaceutical is shifting its business to the continuous creation of new drugs in specialty fields, and even if NHI drug prices are reduced more than expected, the impact is expected to be immaterial because of the company's efforts to build a foundation that can respond to such circumstances. |
Markets |
Risk that climate change will cause a rise in raw material prices, which will lead to a rise in the cost of living for patients, thereby discouraging them from seeing a doctor |
Decreased sales due to a decrease in prescriptions of our pharmaceuticals as a result of reduced medical examinations may force us to cut back on R&D and capital expenditures, which could stagnate business growth. |
Small |
Medium |
Long-term |
Mid-term |
Even if the core subsidiary ASKA Pharmaceutical experienced suppression of medical examinations, we believe that the impact would be immaterial because the demand for its products would be supported by the promotion of women's advancement in the field of obstetrics and gynecology, which is one of its competitive fields, and other factors that outweigh this. |
Evaluation |
Increase of stakeholder concerns due to delays in climate change action |
Although climate change measures are systematically implemented, they cannot keep up with the actual situation on each occasion, which may lead to a loss of revenue due to a loss of trust from stakeholders. |
Small |
Medium |
Long-term |
Mid-term |
As a member of society, we recognize that climate change countermeasures are an urgent issue, and we are actively promoting ESG management to solve social issues through our business, with a focus on environmental issues. However, as efforts to limit the temperature increase beyond 4°C will be expensive and time-consuming, we will consider taking actions to accelerate the target by 2030. |
Physical risks |
Chronic risks |
Risk of increase in operating expenses, such as manufacturing costs due to climate change |
The risk of chronic wind and flood damage could increase, and operations could be disrupted due to inability to come to work or damage to manufacturing facilities. Furthermore, damage to storage facilities (raw materials, products, etc.) could cause a decline in revenues. |
Medium |
Medium |
Mid-term |
Mid-term |
We experienced the disaster at the Iwaki Factory at the time of the Great East Japan Earthquake, and have taken various measures based on our thorough risk management. We will continue our efforts to create an environment that can handle unprecedented situations. |
Acute risks |
Risk of supply chain disruptions due to disasters caused by extreme weather events |
Unprecedented severe windstorms and flooding could cause difficulties in securing raw materials and other resources, which could result in a decline in revenues. |
Medium |
Medium |
Mid-term |
Mid-term |
Leveraging the experience of the Iwaki Factory being damaged in the Great East Japan Earthquake, the Company thereafter has thoroughly implemented risk management to have multiple routes in all situations. We will continue our efforts to create an environment that can handle unprecedented situations. |
Opportunities |
Strengthening competitiveness against climate change-related increases in disease and changes in consumer preferences leads to greater demand for products |
Global warming may change disease trends and cause hormonal imbalance, which may increase demand for existing drugs (e.g., various hormone preparations) and promote the development and marketing of new drugs, thereby increasing revenues. |
Small |
Small |
Long-term |
Long-term |
We will continue to add indications to existing drugs and enhance our library of new compounds, with a focus on specialty fields. |
Proactive initiatives to address climate change risks enhance operational sustainability and stakeholder evaluation, leading to opportunities for share price appreciation |
Our climate change initiatives will contribute to the creation of corporate value by earning the trust of customers, retaining employees, improving our reputation in recruiting, and enhancing our reputation with ESG investors. |
Small |
Small |
Long-term |
Long-term |
We will strive to create corporate value by disclosing information to stakeholders in a timely and appropriate manner. |