ESG |
Materiality |
KPI |
Target |
Environment |
Climate Change |
Scope 1&2 CO2 emission reduction |
Carbon neutral by 2040 |
Scope 3 CO2 emission reduction |
TBD (set after identifying current scope 3 emission) |
Preservation of Natural Resources |
Percentage of reduction of water withdrawal at production sites / labs on a per revenue basis |
15% reduction(vs. 2022) by 2030 |
Percentage of reduction of packaging material on a per revenue basis |
10% reduction (vs. 2022) by 2030 |
Percentage of reduction of waste generated at production sites / labs on a per revenue basis |
20% reduction (vs. 2022) by 2030 |
Circularity |
Percentage of total waste recycled at production sites / labs1 |
90% by 2030 |
Percentage of recycled content in plastic packaging materials |
10% by 2030 |
Social |
Healthcare Innovation |
Number of new patent applications2 |
- |
Number of registered patents2 |
- |
Number of new products/services launched |
- |
Revenue from the “Growth Areas” (Advanced Therapy Development, Digital Health, Personalized Testing and Diagnostic) |
86.0B yen by 2025 (VCP) |
Product Excellence |
Number of warning letters issued (e.g. FDA warning letter) |
0 |
Number of recalls issued |
- |
Supply Chain |
Percentage of response rate to PHC Group supplier survey |
95% |
Expanded Access |
Consolidated sales in emerging and developing markets |
- |
People & Culture |
Ratio of gender diversity at manager level or above |
Non-male ratio:30% by 2030 |
Employee Engagement Score: increase from the previous year |
1 point+ improvement vs. PY |
Enhancing employee learning and skills development |
- |
Governance |
Corporate Governance |
Percentage of nationality diversity of the board of directors |
- |
Board effective assessment |
1/year |
Number of meetings with institutional investors and securities analysts |
- |
Risk Management |
Number of Enterprise Risk Management Committee Meetings |
2/year |
Percentage of employees taking compliance training (e.g. code of conduct, insider trading) |
100% |
Cybersecurity |
Percentage of employees who participate in information security and data protection training |
100% |
Biannual vendor security reviews - percentage of critical vendors reviewed |
100% |
Number of PHC Group Cybersecurity Committee Meetings |
4/year |
*KPIs that are difficult to identify are shown with hyphen symbols. Other key performance indicators still in discussion will be disclosed when ready.
1The recycling percentage does not include thermal recycling. 2Include design and utility.