Environmental Goals and Performance

Environmental Goals

Sumitomo Pharma has established medium- to long-term environmental goals under its Basic Environmental Policy. These goals identify three priority issues, namely carbon neutrality, water, and resource circulation, as well as two foundational issues, legal compliance and prevention of environmental accidents and stakeholder communication, which support progress toward these priority issues. In addition, we formulate medium-term plans and annual implementation plans and promote initiatives in a systematic manner to achieve our medium- to long-term environmental goals.
For more information on the positioning of our environmental initiatives in Material Issues, as well as their goals and KPIs, please see "Material Issues."

Medium- to Long-term Environmental Goals (FY2024-FY2026)

Priority Issues Target Target FY Indicator*1 Results for FY2025
Carbon Neutrality Achieve carbon neutrality by reducing GHG emissions. 2050 Aiming at zero GHG emissions (Scope 1+2)*2 40,235 t-CO2
2030 ①<SBT> Reduce absolute Scope 1 and 2 GHG emissions by 42% by FY2030 from a FY2020 base year.*2
②<SBT> Reduce absolute Scope 3 GHG emissions from purchased goods and services by 25% by FY2030 from a FY2020 base year.*2
③Increase the ratio of non-fossil electricity to 50% or more of total electricity use.*2
①Reduced by 41.7% compared to the base year
②Increased by 18% compared to the base year
③47%
− ①Replace all company vehicles‡ with hybrid or electric vehicles by FY2026.
‡Excluding in-house vehicles
②Completely phase out the use of CFC-containing products and equipment by FY2025.
①97%
②Complete phase-out
Water Promote water conservation and address water risks. 2030 Reduce water withdrawal to below the FY2020 level (599 kt*3) or less. *2 554 kt
− Conduct water risk assessments at production and research sites. ー
Resource Circulation Promote waste reduction and recycling. 2030 ①Achieve a plastic waste recycling rate of 65% or more.*2
②Maintain recycling rate at 80% or higher and aim for at least 85% by FY2030.
③Maintain final disposal rate at less than 1% and aim for less than 0.5% by FY2030.
①62%
②89%
③0.24%
   
Foundational Issues for Addressing Priority Issues Targets Major Achievements in FY2025
Legal Compliance
Prevention of Environmental Accidents
①Operate and continuously improve the environmental management system.
②Conduct regular internal environmental audits.
③Properly manage chemical substances including PRTR substances and antibiotics.
①No environmental accidents or serious violations of environmental laws and regulations.
  Maintain ISO14001 certification for Suzuka Plant and Oita Plant.
②Internal environmental audits conducted at five business sites.
③Air emission rate of PRTR substances kept below 1%.
Stakeholder Communication ①Provide timely and appropriate information disclosure and engage in active dialogue.
②Continuously implement environmental education and initiatives to enhance environmental awareness among all employees.
③Participate in local environmental conservation activities.
④Promote outreach to business partners including environmental due diligence.
①Updated disclosures based on TCFD recommendations and commenced disclosures based on TNFD recommendations.
Achieved CDP scores of A in Climate Change and A- in Water Security for the second consecutive year.
②Issued an awareness message from the Chairperson of the Environmental and Safety Committee.
③Participated in local clean-up and community activities at each business site.
④Conducted a sustainability survey targeting 30 suppliers and collected GHG emissions data from key suppliers.
  • *1SBT and 2050 GHG emissions reduction target are evaluated on a consolidated basis, and other targets are evaluated on a non-consolidated basis.
  • *2 Under the medium-term environmental goals (FY2024-FY2026), progress toward the long-term environmental goals is evaluated, and necessary measures are developed and implemented to achieve the targets.
  • *3Amount of water withdrawal in fiscal 2020, excluding water used at the downsized API manufacturing division.

For more information on the calculation standards, please see "ESG Data Table."

Environmental Investment

We position investments in facility upgrades and initiatives aimed at reducing environmental impacts as important measures that support the sustainable growth of our business. In evaluating such investments, we place importance not only on short-term cost-effectiveness, but also on their contribution to medium- to long-term value creation, including ensuring a stable supply of products and strengthening resilience.

 

Environmental Accounting

We implement environmental accounting to quantitatively identify investments and expenditures related to environmental conservation activities and to evaluate the effectiveness and cost-efficiency of such investments. The results for FY2025 are shown below.

Period covered: April 1, 2025 to March 31, 2026
Scope: Non-consolidated basis
Method of calculation: Followed "Environmental Accounting Guidelines 2005" (Ministry of the Environment, Japan)

(Millions of yen)

Classification of the cost of environmental protection Key initiative Investment Expenditure
1. Business area costs (1) Pollution prevention cost - Prevention of air pollution (exhaust gas treatment, maintenance and control of treatment equipment, measurement and analysis of exhaust gas)
- Prevention of water pollution (wastewater treatment, maintenance and management of wastewater treatment facilities, measurement and analysis of wastewater)
46.4 306.7
(2) Global environmental conservation cost - Promotion of energy conservation (use of LEDs and introduction of energy-efficient equipment)
- Prevention of global warming (proper recovery of fluorocarbons)
11.0 119.4
(3) Resources recycling cost Treatment and recycling of waste 0.0 450.1
2. Upstream and downstream costs Outsourcing of recycling of containers and packaging 0.0 3.7
3. Administration cost - Maintenance and operation of environmental management systems
- Nature conservation, planting of greenery, etc.
0.0 107.2
4. Research and development cost

−

0.0 0.0
5. Social activities cost - Communication with the local community 0.0 1.3
6. Environmental remediation cost

−

0.0 0.1
7. Other costs

−

0.0 0.0
Total

−

57.3 988.5

Economic Effect

The economic effect of environmental protection measures was calculated using only the effects that could be computed on a firm basis, and no effects estimated through hypothetical calculations were included.

(Millions of yen)

Particulars Economic effect
Effect of recycling activity 0.7
Effect of resource saving 4.2
Effect of energy saving 35.2
Total 40.1

Effect of Environmental Protection

Environmental conservation effects are presented based on environmental performance indicators and shown as year-on-year changes in environmental impact.

Particulars of the effect Classification Increase/decrease of environmental impact Environmental impact in FY2025
Effect on resources used for business activities Energy consumption [MWh] -29,511 166,951
Water withdrawal [thousand t] -90 554
Effect on environmental impact and waste arising from business activities CO2 emissions [t-CO2] -4,223 31,938
PRTR substances released into the atmosphere [t] 2.6 3.8
SOx released [t] -0.5 0.0
NOx released [t] -31.6 4.5
Dust emissions [t] -0.1 0.2
Total amount of water discharged [thousand t] -90 554
BOD load [t] -0.1 0.1
COD load [t] -1.0 1.9
Final disposal of waste [t] 6 17

Site Data

For more information on the calculation standards, please see "ESG Data Table."