Environmental Governance

Environmental Governance Structure ｜ Environmental / Occupational Health and Safety Management Systems ｜ Audits ｜ Emergency Preparedness ｜ Education

Environmental Governance Structure

To ensure business execution based on appropriate management judgment, the SHIONOGI Group (“SHIONOGI”) has opted to establish a company with a Board of Corporate Auditors. This is because it will enhance the auditing function of the corporate auditors and the monitoring function of the Internal Control Department, which has an internal auditing function, and promote the smooth functioning of the management monitoring system through cooperation between them.

See the section “Corporate Governance” for details.

SHIONOGI’s initiatives for the environment, health, and safety (“EHS”) are promoted in an integrated manner by each oparating site and Group companies under the leadership of the Corporate Officer in charge of EHS. The Senior Executive Officer in charge of EHS has been appointed as the Corporate Officer in charge of EHS.

Chaired by the Corporate Officer in charge of EHS, the SHIONOGI Group Companywide EHS Committee comprises representatives from the group’s oparating site and presidents from Group companies, who are appointed as personnel in charge of EHS. The committee discusses Environmental Materiality, sets annual targets (EHS Action Targets) centered on each item of Environmental Materiality, and considers and checks the progress of plans and specific activities through management reviews, thereby promoting EHG activities. In addition, the Energy Conservation Committee, chaired by the Corporate Officer in charge of EHS and placed under the SHIONOGI Group Companywide EHS Committee, considers proposals for targets for energy conservation and global warming control, discusses specific measures to achieve climate change targets, manages their progress, and assesses compliance with laws and regulations.

The operation of these two committees and the practical implementation of EHS activities in cooperation with the group’s operating sites are overseen by the EHS Group of the General Administration Department of SHIONOGI.

Among the matters discussed by the SHIONOGI Group Companywide EHS Committee and the Energy Conservation Committee, matters that have a particularly large impact on management are deliberated by the Corporate Executive Meeting and then decided by the Board of Directors. The committees also seek advice from the Board of Directors as necessary.

Environmental / Occupational Health and Safety Management Systems

The Shionogi Group believes that proper daily management and operation of all EHS activities is crucial for the protection of the global environment and the health and safety of all people working within the Shionogi Group and local communities. In terms of operational and management systems, our energy-intensive factories which manufacture our products have obtained certifications for ISO 14001 and ISO 45001, which are international standards for environmental and occupational safety and health management systems. In our other business sites, we also operate our own management systems that comply with ISO 14001 and ISO 45001, ensuring that the management level in each business site and group company is maintained at a certain level or above.

ISO14001, ISO45001 certified business entities and initial registration

	Settsu Plant	Kanegasaki Plant	Tokushima Plant	Itami Plant
ISO 14001	Mar. 2021	Oct. 2022	Nov.2001	Apr. 2006
ISO 45001	Mar. 2018	Jul. 2015	Feb.2022	FY2025 Certification planned

Certification acquisition rate for factories (based on energy consumption)

	Japan	Global
ISO 14001	97.8%	91.8%
ISO 45001	89.9%	84.5%

Audits

SHIONOGI conducts audits of each operating site of the group and its suppliers using multiple approaches to check their EHS promotion status, as shown in the table below.

ISO External audits	Conducted by external accreditation organizations to verify that the group’s ISO 14001- and ISO 45001-certified management systems are operated in conformity with the standards
Internal Group audits	A self-inspection within a company to verify the suitability and compliance of the system according to ISO 14001, ISO 45001, or our own management systems.
EHS audits	Conducted by the division that supervises SHIONOGI’s EHS initiatives, as directed by the management team. This is conducted separately from the internal group audits to ensure that EHS activities within the SHIONOGI Group are being properly implemented and maintained based on the management system, and that continuous improvements are being made.
EHS audits of suppliers	Audits of SHIONOGI’s suppliers of raw materials, intermediates, APIs, products, etc. conducted in compliance with the PSCI Principles
AMR audits	Audits of the status of controlling and managing the release of antimicrobials into the environment from antimicrobial manufacturing facilities inside and outside SHIONOGI Conducted based on the Antibiotic Manufacturing Standard established by the AMR Industry Alliance See the section “AMR” for details.

In addition to the above, for significant suppliers to SHIONOGI, we use EcoVadis, a rating platform for a fairer and more objective assessment of corporate social responsibility and sustainable procurement, to assess their fulfillment.

See the section “Supply Chain Management” for details.

Emergency Preparedness

The SHIONOGI Group Risk Management Policy stipulates that in the event of a crisis, SHIONOGI should place top priority on protecting human life and ensuring safety, promptly take measures to minimize damage and prevent recurrence, and continue business operations as principles of action. To respond to emergencies, such as earthquakes, pandemics, and corporate scandals, we have established emergency response guidelines and manuals with a focus on respect for human life, consideration for and contribution to the local communities, and business continuity. In anticipation of emergencies, we have established communication and reporting systems. We regularly carry out emergency responsiveness training and review response procedures. In FY2023, disaster drills were conducted at each operating site, assuming emergency situations based on the circumstances at each operating site, such as an earthquake-triggered tsunami or fire.

Comprehensive disaster drill (Shionogi Pharma Kanegasaki Plant)

Education

In order to promote EHS activities, we believe it is essential that individual employees be fully aware of environmental, health, and safety issues in connection with their own work, and actively address them. We provide environmental education and preliminary education related to operations with high environmental impact, such as waste management and the handling of chemical substances, at operating sites such as plants and research laboratories with a relatively large environmental impact. We also clearly inform employees of the targets and actual figures of CO₂ emissions and waste generated in order to promote efforts to reduce the environmental impact.