Carbon Neutrality

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Goals

Climate change due to global warming is causing serious environmental issues on a worldwide scale, such as by severely impacting biological and water resources. We recognize it as a major risk to our global operations. The Otsuka group is committed to creating a decarbonized society, and thereby a sustainable society. We are aiming to reduce greenhouse gas (GHG) emissions across the entire value chain in order to help achieve the Paris Agreement goal of holding the global average temperature increase below 2°C above pre-industrial levels.

Initiatives for Efficient Energy Use and CO2 Reduction

①Introduced CO2-Free Electricity1 and Green Power Certificates

Since 2019, the Otsuka group has introduced CO2-free and electricity from other renewable energy sources , extending their use to manufacturing sites. In fiscal 2020, we reduced CO2 emissions by approximately 84,000 tons (equivalent to the annual emissions of approximately 29,000 households2) through the introduction of renewable energy. In addition, five domestic group companies3 purchased Green Power Certificates for switching to green power at all sales sites and headquarters of the five group companies in Japan, and other offices, thereby reducing CO2 emissions by approximately 6,000 tons/year. Going forward, the group will work together toward the realization of a decarbonized society, and ultimately of a sustainable society, by optimizing and maximizing energy use through the introduction of renewable energy and fuel conversion, while exercising synergistic effects among group companies.

  • 1Including carbon-neutral electricity utilizing certificates equal to renewable energy that does not emit CO2
  • 2Calculated from CO2 emissions of the residential sector, fiscal 2018
  • 3Otsuka Pharmaceutical, Otsuka Pharmaceutical Factory, Taiho Pharmaceutical, Otsuka Chemical, and Otsuka Foods

②Introduced solar Power Generation System for In-House Consumption

  • Kushiro Factory, Otsuka Pharmaceutical Factory
  • Otsuka Pharmaceutical India

As a countermeasure against climate change, the Otsuka group has set a goal of reducing CO2 emissions by 30% by 2030.1 Toward this goal, we are promoting the further utilization of renewable energy and improving energy use efficiency through the introduction of co-generation systems and, including solar power CO2-free electricity generation systems. In 2020, we introduced solar power generation systems for in-house consumption at the Kushiro Factory of Otsuka Pharmaceutical Factory and Otsuka Pharmaceutical India. We estimate that this will result in annual CO2 emission reductions of approximately 10% at Kushiro Factory, and by 6% at Otsuka Pharmaceutical India.

  • 1Otsuka group, compared to FY 2017 (CO2 emissions in Japan and overseas)

Validation of Otsuka Pharmaceutical and Taiho Pharmaceutical Goals under the SBT Initiative1

GHG reduction goals set by Otsuka Pharmaceutical and Taiho Pharmaceutical have been validated under the Science Based Targets (SBT) Initiative.
In order to achieve these new goals, we will optimize energy use and introduce renewable energy, and continue to promote reduction of GHG emissions throughout the value chain.

2030 Goals

Reduction of greenhouse gas emissions (Scope 12 and 23) by 30% compared to 2017
Reduction of greenhouse gas emissions (Scope 34) by 20% compared to 2017

  • 1An international initiative led by the United Nations Global Compact (UNGC), World Resources Institute (WRI), and World Wide Fund for Nature (WWF). Validates companies' CO2 emission reduction targets that align with scientifically-based reduction scenarios, in order to achieve the Paris Agreement goal of holding the global average temperature increase below 2℃ above pre-industrial levels.
  • 2Scope 1: Direct emissions
  • 3Scope 2: Indirect emissions from energy sources
  • 4Scope 3: Other indirect emissions

Support Recommendations of the Task Force on Climate-related Financial Disclosure (TCFD)

The Otsuka group has supported for recommendations issued by the Task Force on Climate-related Financial Disclosure (TCFD). We are actively engaged in analysis of climate-related business risks and opportunities and development of appropriate responses.

Third-Party Verification of GHG Emissions

In order to improve the transparency and reliability of its environmental data, the Otsuka group has its GHG emissions Scopes 1 and 2 (CO2 emissions from energy sources, including energy consumption), and Scope 3 (Category 1) verified by third-party organizations. This helps us identify emissions trends and implement improvements. We will continue to expand the scope of verification and further enhance the reliability of our data.

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