Sustainability

Hisamitsu Pharmaceutical Group’s
Commitment to Sustainability

Our Approach to Sustainability

We at the Hisamitsu Pharmaceutical Group have established "Delivering a Better QOL to the World" as our Corporate Philosophy and strive to create value for all stakeholders, including customers and society, through our business activities. In order to adapt to the recent rapid changes in the external environment and meet the diversifying needs of our customers, we are conducting business activities centered on our 7th Medium-term Management Policy and Materiality (priority issues) under our company mission "Promoting 'TE-A-TE' Culture Worldwide." While placing importance on ESG and the SDGs (Sustainable Development Goals), we will actively pursue unprecedented and challenging initiatives and bring about revolutionary changes, aiming to increase our corporate value and contribute to the realization of a sustainable society.

Hisamitsu Pharmaceutical Group's Sustainability Policy

"TE-A-TE" Creates Smiles

Hisamitsu cherishes the "TE-A-TE" culture.
What lies beneath "TE-A-TE" is your compassion for your loved ones.
“TE-A-TE” is about caring for others.
Such compassion is the starting point of our “Patch Treatment Culture,”
which we have emphasized since our establishment.

One way to spread "TE-A-TE" culture throughout the world is to promote
"Patch Treatment Culture," but our corporate responsibilities are not limited to that.

It is our mission and responsibility as long as it is filled with enthusiasm for
“TE-A-TE” and concerned with customer satisfaction, even if it is in the realm of
service operations or disease/injury prevention.

By contributing to creating happy smiles through a
compassionate "TE-A-TE" culture, we will strive to achieve a
favorable cycle of solving social problems and realizing our
corporate group’s growth.

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Sustainability Promotion Structure

In January 2021, we upgraded the CSR Promotion Committee and renamed it the Sustainability Promotion Committee. Chaired by the Director in charge of sustainability promotion, the new committee consists of each department’s sustainability promotion members. In light of the social challenges surrounding Hisamitsu, environmental problems, and requests from a wide variety of stakeholders, the committee endeavors to promote sustainability at the Hisamitsu Pharmaceutical Group.

Sustainability Promotion Committee
Role Deliberating on basic policies on sustainability, and important issues as an advisory body to the President & CEO
Chairman Director in charge of sustainability promotion
Sustainability Promotion Members Committee Directors, as well as Executive Officers, and General Managers of related departments
Schedule Held every quarter in principle, reporting deliberations to the Board of Directors on a regular basis
Hisamitsu Pharmaceutical Group's Sustainability Policy

Identification Process of Materiality

Step1
Identification of social issues

List the social issues to be addressed by referring to international guidelines such as the SDGs and SASB, and survey items from sustainability rating organizations.

Step2
Prioritization of social issues

Map the issues identified in the survey to the two axes, “Expectations of stakeholders” and “Impact of the company's business,” and narrow down the list to those items with the highest priority.

Step3
Validation

Sustainability Promotion Committee, consisting of Directors, Executive Officers, and General Managers of related departments reviewed and confirmed validity of the items.

Step4
Identification of Materiality

Management Advisory Committee and the Board of Directors identified the Materiality, through discussions, as a strategic issue to be addressed.
Going forward, review the Materiality on a regular basis in response to changes in the internal and external business environments.

Hisamitsu Pharmaceutical Group’s Materiality
(Priority Issues)

In 2021, we identified nine materiality points (Priority Issues) to create the common value “TE-A-TE Creats Smiles,” presented in our sustainability policy.
These materiality points (Priority Issues) are divided into the following two categories:

  • ① Materiality related to our contribution to solving social problems by creating new value
  • ② Materiality related to the solution of social problems, social needs, and the foundation for our sustainable growth

While striving to create common value by focusing on these materiality points, we will contribute to establishing a sustainable society.

Hisamitsu’s Shared Value
       
Materiality related to our contribution to solving social issues by creating new value
Creating products and services with enthusiasm for "TE-A-TE"
  • ・Develop and provide products in response to needs that are irrelevant to patches
  • ・Provide products and services that will contribute to expanding people’s healthy life expectancy
Promoting "patch treatment culture" worldwide
  • ・Promote the benefits of "TE-A-TE” through patches
  • ・Develop further-value-added patches
Materiality related to solving social issues, social demands, and the foundation for sustainable growth of the company
Promoting environmental management
  • ・Reduce CO₂ emissions coming from our business operations
  • ・Reduce our use of plastic and waste generation
  • ・Promote Sustainability procurement throughout our supply chain
Improving medical products, services, etc. and access to information
  • ・Provide products and services worldwide
  • ・Provide various means of purchase depending on customers’ needs
  • ・Provide even more health-related information
Contributing to local communities
  • ・Support cultural, sports, and group activities
  • ・Develop products based on the concept of local production for local consumption
Promoting DE&I and work style reform
  • ・Use a wide variety of HRs
  • ・Establish a fulfilling work environment
Supplying high-quality products and services
  • ・Ensure the quality and safety of our products and services
  • ・Improve our products using feedback from customers
Implementing responsible marketing and information collection
  • ・Conduct marketing in compliance with each country’s guidelines
  • ・Collect information on the proper use of medical products and other items
Ensuring legal compliance and reinforce our governance structure
  • ・Enhance the effectiveness of our board of directors
  • ・Increase the awareness of legal compliance
  • ・Eliminate all forms of harassment
  • ・Respond to a wide variety of risks

KPI Setting and FY2024 Progress

For Materiality, which is particularly important for solving social issues and for the sustainable growth of our Company Group, we have established Key Performance Indicators (KPIs) to evaluate our progress over the medium to long term. Progress in FY2023 was as follows: Since FY2024, we have expanded the scope of “CO₂ Emission Reduction (Scopes 1 and 2)” to the Hisamitsu Pharmaceutical Group, and the scope of “Sustainability Procurement Survey Response Rate” to Hisamitsu Non-consolidated and its overseas subsidiaries with production bases. Additionally, we will set “Reduction in the Use of Plastics” and “Waste Plastic Recycling Rate” as new KPIs and work on solving social issues.

Materiality (Priority Issues) KPI FY2023 Results FY2024 Results Scope
・Creating products and services with enthusiasm for "TE-A-TE"
・Promoting “patch treatment culture” worldwide
3 GOOD HEALTH AND WELL-BEING
Creating products and services that embody the spirit of "TE-A-TE"
(Transdermal patches and products and services that embody the spirit of "TE-A-TE")
  • Rx: APOHIDE Lotion 20%
    (Japan),
    XELSTRYM (U.S.)
    OTC: 12 items
    (Japan: 5 items, Overseas: 7 items)
    Others: 28 items
    (Japan: 23 items, Overseas: 5 items)
  • Rx: OABLOK Ex PATCH 73.5 mg (Thailand),
    ALLESAGA PATCH 4 mg (Thailand)
    OTC: 12 items
    (Japan: 5 items, Overseas: 7 items)
    Others: 5 items
    (Japan: 3 items, Overseas: 2 items)
Hisamitsu Non-consolidated,
overseas subsidiaries
Expand the number of countries and regions where our products are sold
  • OTC/Others: 33 countries and regions including Japan
    Rx: 9 countries and regions including Japan
  • OTC/Others: 34 countries and regions including Japan
    Rx: 10 countries and regions including Japan
Hisamitsu Non-consolidated,
overseas subsidiaries
Environment- and user-friendly drug development
(Drug development: product improvement, additional indications, etc.)
  • <Indication added>
    None
  • <Product improvements and others>
    Rx: 21 products
    (Japan: 21 products, Overseas: none)
    OTC/Others: 8 items
    (Japan: 7 items, Overseas: 1 item)
  • <Indication added>
    None
  • <Product improvements and others>
    Rx: 13 products
    (Japan: 13 products, Overseas: none)
    OTC/Others: 17 items
    (Japan: 16 items, Overseas: 1 item)
Hisamitsu Non-consolidated,
overseas subsidiaries
Promoting environmental management
12 RESPONSIBLE CONSUMPTION AND PRODUCTION
13 CLIMATE ACTION
Reduction of CO₂ Emissions
(Scopes 1 and 2)

Reduce by 46% compared to FY2013 by FY2030.
Target: All sites of the Hisamitsu Pharmaceutical Group. However, sites with little impact on the calculation of CO₂ emissions are excluded.
  • Progress toward the standard: Reduced by 27.1%
    Hisamitsu Pharmaceutical Group
    Reduced by 17.1%
    (compared to FY2013)
    Hisamitsu Non-consolidated
    Reduced by 29.5%
    (compared to FY2013)
  • Progress toward the standard: Reduced by 29.8%
    Hisamitsu Pharmaceutical Group
    Reduced by 18.1%
    (compared to FY2013)
    Hisamitsu Non-consolidated
    Reduced by 31.6%
    (compared to FY2013)
Hisamitsu Pharmaceutical Group
Reduction of Waste
  • 1)Reduction of Industrial Waste Generated from Factories
    Reduce industrial waste rate by 1.5% compared to FY2020 by FY2025.
    *Waste rate = Industrial waste volume/Total production volume
  • 2)Reduction of “household waste” related to the Containers/Packaging Recycling Act
    10% reduction compared to FY2020 by FY2030
    *Not including impact of increase/decrease in sales volume.
Waste rate: Increased by 1.4% (compared to FY2020) Waste rate: Increased by 0.5% (compared to FY2020) Hisamitsu Non-consolidated
Increased by 15.9%
(compared to FY2020)
*Reduced by 18.7%
(compared to FY2020)
if S-CUP, whose sales started in FY2023, is excluded
Increased by 30.1%
(compared to FY2020)
*Reduced by 23.1%
(compared to FY2020)
if S-CUP, whose sales started in FY2023, is excluded
Reduction in the Use of Plastics
Offer 29 RX drugs, 35 OTC drugs, and 2 other items (quasi-drugs) that use less plastic* by 2030.
*Plastic reduction: Refers to the reduction of petroleum-derived plastics themselves and their replacement with recycled materials, biomass-derived materials, and paper materials.
Rx drugs: 6 products
OTC drugs: 2 items
Quasi-drugs: 2 items
Rx drugs: 12 products
OTC drugs: 18 items
Quasi-drugs: 2 items
Hisamitsu Non-consolidated, overseas subsidiaries
Waste Plastic Recycling Rate
We will achieve the waste plastic recycling rate of 65% or higher by FY2030.
Waste plastic recycling rate 99.8% Waste plastic recycling rate 100% Hisamitsu Non-consolidated
Sustainability Procurement Survey Response Rate
To achieve 100% response rate to the Sustainability Procurement Survey by FY2025.
Scope:
(1) Primary and secondary suppliers for products manufactured in domestic factories
(2) Primary and secondary suppliers for products manufactured in overseas factories
  • Response rate
  • Hisamitsu Non-consolidated100.0%
  • Hisamitsu Indonesia100.0%
  • Hisamitsu Vietnam100.0%
  • Noven74.1%
  • Hisamitsu Brazil93.8%
  • Response rate
  • Hisamitsu Non-consolidated100.0%
  • Hisamitsu Indonesia100.0%
  • Hisamitsu Vietnam100.0%
  • Noven100.0%
  • Hisamitsu Brazil100.0%
Hisamitsu Non-consolidated Overseas subsidiaries with production sites
Supplying high-quality products and services
12 RESPONSIBLE CONSUMPTION AND PRODUCTION
Zero Product Recalls
Achieve zero product recalls each year.
Product recalled: 0 Products recalled: 1
May 2024 “Heating device Jikabari Onkan Plus”
Hisamitsu Non-consolidated
Product Complaint Incidence
Reduce product complaint incidence to 0.001% or less by FY2025.
Scope: Product-related complaints for all products manufactured and sold by the Company
Product complaint incidence: 0.0015% Product complaint incidence: 0.0011% Hisamitsu Non-consolidated
Promoting DE&I and work style reform
5 GENDER EQUALITY
8 DECENT WORK AND ECONOMIC GROWTH
Job Satisfaction Score
Raise the average score for 8 items to 5.0 points or higher by FY2025.
Average for 8 items: 4.69 points Average for 8 items: 4.90 points Hisamitsu Non-consolidated
Ratio of Women in Management Positions
Increase the ratio to 15% by March 31, 2029.
As of March 31, 2024
Ratio of women in management positions: 7.8%
As of March 31, 2025
Ratio of women in management positions: 9.4%
Hisamitsu Non-consolidated
Continuous Employment Rate of Women Employees in Their 9th to 11th Years of Employment
Increase the rate to 50% or higher by March 31, 2029.
As of March 31, 2024
Continuous employment rate: 51.4%
As of March 31, 2025
Continuous employment rate: 47.9%
Hisamitsu Non-consolidated

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