■ EHS Organizational Structure

 

In the Shionogi Pharma EHS organizational structure, which promotes EHS (Environment, Health, and Safety) activities, the Corporate Officer in Charge of EHS performs integrated management of EHS for the entire company, and the plant manager of each site serves as the EHS Representative for the site.

In addition, the EHS Committee has been established as a decision-making body related to EHS. Comprising the heads of all organizations as well as EHS Management Representatives, who are responsible for practical EHS operations at each site, it formulates company-wide action targets related to EHS and promotes management reviews and other activities. Matters that have been decided are subject to approval by the appropriate higher-level meeting body.

Moreover, a toxicologist is assigned as a person in charge of toxicity to evaluate the toxicity of chemical substances for scientific and rational measures against worker exposure.

 EHS Management System

 

Shionogi Pharma’s manufacturing plants are ISO (International Organization for Standardization) certified. As for the ISO 14001 environmental management system, we conduct organizational/corporate activities that are internationally recognized as being friendly to the global environment. Meanwhile, for the ISO 45001 occupational safety and health management system, we have established a mechanism for realizing a safe working environment in all workplaces. The certification status of each site is as shown in the chart above.

We check and review whether our activities are carried out in compliance with these frameworks through self-inspection conducted annually at each site.

 EHS Action Targets

 

In addition to the SHIONOGI Group EHS Action Targets established by Shionogi & Co., Ltd. (see SHIONOGI Environment Report 2022), Shionogi Pharma has set its own company-wide action targets as well as action targets for each site. The results are reported to management and are reviewed in the following fiscal year’s management review. Thus, the PDCA cycle is appropriately implemented.

 

As action targets for fiscal 2022, in addition to climate change action and waste measures we should take as a company, we have identified chemical substance management and industrial safety and health, which are the basics for plants that handle chemical substances. Based on these targets, we have worked to realize safe, secure, and sustainable production activities.

In particular, we have positioned environmental issues and occupational accidents as major risks and have regularly reported them to Directors and other management members, as part of Shionogi Pharma’s enterprise risk management.

 

For external activities, we work together with Shionogi & Co., Ltd., our parent company, to engage in various activities, such as supplier engagement activities, support for the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), and participation in the TCFD Consortium. Moreover, Shionogi Pharma independently participates in the Japan Partnership for Circular Economy (J4CE) and is involved in the resource recycling project with multiple companies. As a result of these activities, the SHIONOGI Group was awarded the Bronze Medal by EcoVadis.

 

Supply Chain Management

 

● Basic Concept of Procurement

As a member of the SHIONOGI Group, we have formulated the SHIONOGI Group Business Partner Code of Conduct*1 based on the principles of PSCI,*2 an NPO that aims to promote sustainable procurement in the pharmaceutical industry, and on the Ten Principles in four areas (human rights, labor, the environment, and anti-corruption) of the United Nations Global Compact,*3 and promote CSR procurement based on sincerity, accuracy, fairness, and transparency.

 

 

We ask our business partners to agree to comply with the SHIONOGI Group Business Partner Code of Conduct and to cooperate with us to autonomously and continuously improve our ESG management.

● ESG Management in CSR Procurement

 

Based on the SHIONOGI Group Procurement Policy, we work together with our business partners to ensure a stable and secure supply of high-quality pharmaceuticals while complying with laws and regulations, selecting suppliers in a rational manner, conducting fair and impartial transactions, and developing together with them.

In order to create products and services with excellent quality, safety, and medical economy that are useful to many patients, medical professionals, and society, and to provide them in a continuous and stable manner, we procure an appropriate amount and quality of raw materials, goods, and services at appropriate prices.

 

To this end:

We add EHS items to our Supplier and Contractor Management Standards to strengthen ESG management of the entire supply chain, including business partners.

We continue to work to ensure thorough compliance with laws, regulations, and other standards.

We agree with the purpose of the “White Logistics” promotion campaign, in which the Ministry of Land, Infrastructure, Transport and Tourism, the Ministry of Economy, Trade and Industry, and the Ministry of Agriculture, Forestry and Fisheries are calling on listed companies and major companies in each prefecture to participate, and work on initiatives for “White Logistics.”

As part of our efforts to reduce CO2 emissions, we select the top 20 companies by transaction value with the SHIONOGI Group as priority suppliers and work together with them, aiming to reduce CO2 emissions by 20% (compared to FY2019) by 2030.