Circular Economy

Core Principles

In line with global trends, for us to be able to create a more sustainable society and achieve sustainable corporate growth, we need to shift to a circular economy-type business model whereby we can achieve growth without having a serious impact on the environment. We regard the use of fossil resources-derived materials and waste discharge to the natural environment as environmental impacts that must be reduced to zero. We are committed to eliminating fossil resources-derived materials and achieving zero waste^* as our vision. We will also continue to increase resource efficiency throughout the supply chain and build a harmonious and sustainable relationship with all resources, including bioresources.

• *Approach to reduce waste discharge (simple incineration and landfill disposal) to the natural environment to zero and utilize all resources effectively

Indicators and Goals

Our
Goals

[2028 targets]

• 50% reduction in simple incineration and landfill disposal compared to 2019
• Formulation and implementation of food loss reduction plans

[2030 targets]

• 100% of recycled materials in our PET bottles and use of plant-based materials

Targets and progress in reduction of simple incineration and landfill disposal

> Please refer to the Integrated Report P90 Circular economy

Pollution Control and Management of Chemical Substances

The Otsuka group will control and reduce the generation of chemical substances used and emitted in the business activities of our group companies and our manufacturing contractors through operation of the ISO14001 environmental management system with appropriate management and improve the system's operation.

Otsuka Group’s Chemical Substance Management Policy

Guidelines

1. Prevent the adverse effects of chemical substances on humans and ecosystems
2. Comply with laws and regulations in each country and further promote voluntary initiatives
   We will comply with the laws and regulations of each country regarding the use and discharge of chemical substances and will further promote voluntary initiatives.
3. Monitoring
   We will monitor the amount of chemical substances used and emitted in our business activities, check the status of compliance and progress of voluntary initiatives regularly, and take necessary corrective actions.
4. Response in the event of violations or disasters
   We prepare the procedures for dealing with violations and disasters and share them with relevant employees to prevent the occurrence of chemical contamination even in a state of emergency.

Proper Management of Chemical Substances

The Otsuka group strives to properly manage and reduce chemical substances covered by the Pollutant Release and Transfer Register (PRTR) system, as well as air and water pollutants.