Materiality

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Process for Determining Materiality (Material Issues)

Materiality is initiatives that Otsuka is focused on. To determine the Otsuka group's material issues, we first compiled a list of social issues, referencing a range of international guidelines and frameworks, including ISO 26000, GRI, and the U.N. SDGs. We narrowed down the list of issues by evaluating them in terms of their importance, taking into account our ability to contribute to a solution, their impact on business, and our strengths. Issues were then discussed by the Sustainability Promotion Committee1 and approved at the Otsuka Holdings Board of Directors meeting. As a result, the material issues of the Otsuka group were determined to be: society (health, people, quality in all we do), environment (climate change, resource recycling and conservation, water conservation), and governance.

*1The Sustainability Promotion Committee promotes sustainability throughout the Otsuka group. The committee's responsibilities include discussing and deciding on the direction and plans for sustainability activities. The Otsuka Holdings director in charge of sustainability promotion serves as the committee chair. Committee members comprise group managers of departments relating to sustainability and the sustainability officers of each company.

Details on the sustainability management structure here

Map of Social Issues

We compiled a list of the social issues relevant to the Otsuka group's businesses, and created a map of social issues considering their importance in terms of sustainability and their degree of impact on business activities.

*2The situation where productivity does not go up due to the poor condition of the mind and body despite coming to work

The Otsuka Group's Materiality (Material Issues) and Related SDGs

Materiality Social Issues Our Goals Our Activities Related SDGs
Society
(Healthier Society)
Health
  • Unmet medical and health needs
  • Spread of infectious diseases
  • Nutritional needs
  • Increasing aging issues
  • Contribute to unmet needs solutions
  • Eradication of tuberculosis
  • Creation of a system for the realization of a healthful life
  • Healthy life extension
  • Promotion of R&D for unmet needs
  • R&D of antituberculosis drugs and improvement of drug access
  • Support and awareness activities for people's health maintenance/improvement mainly on exercise and nutrition etc.
  • Promotion of problem solving by strengthening partnerships
People
  • Presenteeism
  • Unprepared for diversification
  • Creation of a corporate culture that stimulates creativity
  • Enhance employee engagement
  • Human resource development
  • Diversity promotion
  • Health management
Quality in All We Do
  • Consumption and production that impairs sustainability
  • Gaining stakeholder trust
  • Pursuing sustainability at all levels of the value chain
  • Establishing a quality assurance system for safety and security
  • Sustainable procurement and product design
  • Thorough quality control and stable supply
  • Responsible promotional activities and information provision
  • Deepening communication with stakeholders
  • Promotion of “customer-centric management”
Environment
(Healthier Planet)
Climate Change
  • Global warming
  • FY 2030 Goal: 30% reduction in CO2 emissions compared to FY 2017
  • Reduce CO2 emissions throughout the value chain
Resource Recycling and Conservation
  • Environmental load increase
  • FY 2030 Goal: 50% reduction in simple incineration and landfill compared to FY 2019
  • FY 2030 Goal: 50% or higher content of recycled and plant-based materials in our PET bottles
  • Reduce environmental impact by improving resource efficiency
  • Promotion of business activities aimed at a sustainable state in both society and the earth
Water Conservation
  • Reducing freshwater availability
  • FY 2030 Goal: Improvement of water use efficiency by 15% compared to FY 2017
  • Understanding water resources risk
  • Management and effective use of water resources
Governance
  • Fragile governance system
  • Social change risk
  • Long-term improvement of corporate value
  • Strengthening corporate governance
  • Thorough compliance
  • Risk identification, evaluation and management
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