Based on our management philosophy of “contributing to healthcare through the development and marketing of leading-edge, superior medical devices,” we will identify materiality issues from a long-term perspective, fulfill our corporate social responsibility (CSR) through ESG activities, and pursue sustainable growth while contributing to the SDGs (Sustainable Development Goals).
In March 2022, we expressed our support for the TCFD* recommendations and joined the TCFD Consortium*, a group of companies and financial institutions that support the TCFD. We will take climate change seriously, deepen our understanding of the opportunities and risks that affect our business, and proactively disclose our efforts to address climate change. The TCFD recommendation recommends disclosing information on climate change in the areas of 1. Governance, 2. Strategy, 3. Risk management, and 4. Indicators and targets. We will analyze scenarios, assess risks and opportunities associated with climate change, and disclose information in line with the four recommended disclosure items in accordance with the TCFD recommendations.
*1 TCFD: Task Force on Climate-related Financial Disclosures (TCFD)
Task Force on Climate-related Financial Disclosures. A task force established by the Financial Stability Board (FSB).
The task force was established by the Financial Stability Board (FSB) with the objective of understanding and disclosing the financial implications of the risks and opportunities posed by climate change.
The company publishes recommendations on
TCFD website：https://www.fsb-tcfd.org/
*2 TCFD Consortium
A forum for discussing effective information disclosure by companies and efforts to link the displayed information to appropriate investment decisions by financial institutions, etc.
Established in 2019, the TCFD will be promoted by companies and financial institutions that support the TCFD’s propositions.
570 organizations are participating as of March 25, 2022.
TCFD Consortium website：https://tcfd-consortium.jp
Our Board of Directors believes that addressing sustainability issues (e.g., consideration of climate change and other global environmental issues, respect for human rights, fair and appropriate treatment of employees and their health and working environment, fair and appropriate transactions with suppliers, and risk management for natural disasters) will not only reduce our business risks but also provide us with profit opportunities. We recognize that this is an important materiality, and we are responsible for addressing it. The Sustainability Committee* discusses and evaluates our response to the TCFD and reports to the Board of Directors twice a year, and the Board of Directors approves, supervises, and provides guidance based on the Committee’s report.
※Sustainability Committee
The committee is chaired by the President and Chief Executive Officer and consists of executive officers, the head of the Sustainability Promotion Office, and a person appointed by the chairperson.
Sustainability Management Structure
We manage key management risks by promoting the activities of the Risk Management Committee in accordance with the Risk Management Regulations. Climate change risk is also positioned as a management priority risk, and risk analysis is conducted. The Sustainability Committee works with the Risk Management Committee and Compliance Committee, which are subordinate organizations, to identify sustainability-related risks and deliberate appropriate responses, and reports to the Board of Directors twice a year. The Board of Directors receives reports from the Sustainability Committee on the status of risk management and responses, and provides supervision and guidance.
We have set our climate change index as greenhouse gas (GHG) emissions, and based on the FY2020 Scope 1 and 2 GHG emissions, we have set our domestic reduction target for FY2030 at 30% below the FY2020 level, with the goal of achieving “zero GHG emissions” in FY2050. The company will be responsible for the following.
(Domestic)Scope 1.2 GHG emissions: t-CO₂
We aim to achieve zero GHG emissions by 2050 by systematically implementing initiatives to reduce GHG emissions, including the promotion of energy conservation at all of our domestic bases, procurement of electricity derived from renewable energy sources, and the phased introduction of electric vehicles.
(Domestic)Scope 1.2.3 Actual GHG emissions: t-CO₂
| Scope1 | Scope2 | Scope3 | Total Amount | |
|---|---|---|---|---|
| 2020 (Base year) | 1,111 | 210 | 7,440 | 8,761 |
(Domestic) Scope3
| ①Products and Services Purchased | 2,439 | 32.8% | |
| ②Capital Goods | 2,432 | 32.7% | |
| ③Fuel and energy related activities | 299 | 4.0% | |
| ④Transportation and Delivery (upstream) | 1,355 | 18.2% | |
| ⑤Waste from Operations (Upstream) | 8 | 0.1% | |
| ⑥Business Trip | 798 | 10.7% | |
| ⑦Employer Commute | 42 | 0.6% | |
| ⑧Leased Assets (Upstream) | – | – | ※2 |
| ⑨Transportation, Delivery (Downstream) | 65 | 0.9% | |
| ⑩Processing of Sold Products | – | – | ※2 |
| ⑪Use of Products Sold | – | – | ※2 |
| ⑫Disposal of Sold Products | 1 | 0.0% | |
| ⑬Leased Assets (Downstream) | – | – | ※2 |
| ⑭Franchise | – | – | ※2 |
| ⑮Investment | – | – | ※2 |
| Total Amount | 7,440 | 100.0% |
|---|
（※2）Columns ⑧⑩⑪⑬⑭⑮ are not calculated because there are no streets.
(Note) Each description based on the TCFD framework is information for Japan (on a non-consolidated basis) only. We will promptly disclose information on a consolidated basis, including overseas (affiliated companies), as soon as we are ready to do so.
In order to realize the optimal allocation of management resources, a product portfolio framework consisting of two axes, product growth potential and return on capital, is defined. The growth potential and earning power (free cash flow generation) of each introduced product is comprehensively evaluated, taking into account the social responsibility of the medical business, and management decisions such as growth acceleration and identification of non-focused products are made appropriately and promptly.
