Environment Climate Change Initiatives

Climate change is an environmental problem that has a significant effect on the continued existence of life, including human beings, and efforts to prevent it are now a major challenge for the global community. The Group has positioned climate change initiatives as an important management theme and is promoting the reduction of greenhouse gas emissions resulting from its business activities.

Reduction of Greenhouse Gas (GHG) Emissions

To mitigate climate change, the Group is endeavoring to reduce its energy consumption and greenhouse gas emissions by preventing the leakage of fluorocarbons, and has set the following targets in the Medium-Term Environmental Action Plan 21-25.

◇25% reduction in fiscal 2019 GHG emissions by fiscal 2025 (Global: Scope 1+ 2)

Greenhouse gas emissions for all global bases in fiscal 2022 were 62.9 thousand t-CO2eq, down 24% compared to fiscal 2019.
This breaks down as: Scope 1 emissions are 22.5 thousand t-CO2eq, a 25% reduction from fiscal 2019, with Scope 2 emissions of 40.5 thousand t-CO2eq, a 23% reduction on fiscal 2019.
This reduction can be attributed to the conclusion of consolidation of a series of bases (such as Toda and Kashima) in Japan, and the ongoing daily promotion of energy conservation efforts at each base in order to achieve our goal of a 25% reduction.

GHG emissions (scope 1 + 2)

Supply Chain Greenhouse Gas Emissions Reduction Overview

Scope 3 emissions are largest in category 1, accounting for 94.9% of all supply chain greenhouse gas emissions (scope 3).

Scope 3 greenhouse gas emissions

Category GHG emissions (Thousand t-CO2eq) Calculation method
1 Purchased goods and services 665.0 Calculated from the purchase prices of raw materials and products in Japan, which are multiplied by the emissions unit values* from the Ministry of the Environment database
2 Capital goods 20.2 Calculated from acquisition amounts of property, plant and equipment, not only for domestic companies but also for overseas companies in the scope of consolidation, which are multiplied by the emissions unit values* from Ministry of the Environment database
3 Fuel- and energy-related activities not included in Scope 1 or 2 10.3 Calculated from amount of energy used at domestic and overseas Group offices, which is multiplied by emissions unit values* from Ministry of the Environment database or the emissions unit values from the LCI database (IDEAv2.3)
4 Transport and delivery (upstream) 1.9 Calculated from domestic transportation ton-kilometers for shipments from plants to distribution centers, shipments from distribution centers to wholesalers, and shipments from sales-promotion item warehouses to branches, sales offices, etc., using the ton-kilometer method in the greenhouse gas emission calculation and reporting manual from Japan's Ministry of the Environment and Ministry of Economy, Trade and Industry
Calculated from electricity used for storage management at outsourced distribution centers and sales-promotion item warehouses, multiplied by the actual emissions factor indicated in the emissions factors for electric power enterprises announced by the Ministry of the Environment and the Ministry of Economy, Trade and Industry on January 24, 2022
5 Waste generated in operations 1.2 Calculated from the amounts of waste, by type, from domestic Group offices (production and research bases, headquarters/Tokyo Head Office, distribution centers), which are multiplied by emissions unit value* from Ministry of the Environment database
6 Business travel 0.8 Calculated from number of domestic and overseas employees, which is multiplied by the emissions unit value* from Ministry of the Environment database
7 Employee commuting 1.1 Calculated by multiplying the amount of transportation costs paid by domestic and overseas transportation districts by multiplying the emissions unit values* from Ministry of the Environment database
12 End-of-life treatment of sold products 0.3 Calculated from amount of recycling obligation based on the Containers and Packaging Recycling Law in Japan, which is multiplied by the emissions unit value* from Ministry of the Environment database
Total 700.9

*Ministry of the Environment database: database on emissions unit values for calculating greenhouse gas emissions, etc., by organizations throughout the supply chain (Ver.3.3)

Reduction of Energy Used

The domestic Group holds regular energy liaison committee meetings for energy conservation to review changes in energy consumption and energy conservation measures as needed. We are also promoting energy conservation throughout the Group by creating an energy management system for the entire group.
Energy use (thermal equivalent) has reduced for the fourth consecutive year though a variety of energy-saving activities undertaken at each base.

Energy use (global)

Initiatives to Reduce Greenhouse Gas Emissions

Energy-Saving Initiatives at Bases

The Group is actively promoting energy conservation activities.
At our domestic and overseas bases, we are continuously replacing lights with LED lighting, controlling the blinking of lights with sensors, as well as promoting the shutdown of operations in manufacturing areas during long vacation periods. In fiscal 2022, we implemented a range of initiatives aimed at energy saving related to air conditioners at each base and workplace, such as changing air conditioner temperature settings in manufacturing areas and reviewing operation of low-temperature rooms at research sites. We also conduct daily energy-conserving activities such as energy-saving campaigns at all bases to educate employees and recommend turning off lights and equipment power when not in use.

Additionally, in collaboration with other industries, we are participating in NEDO’s “Strategic Innovation Program for Energy Conservation Technologies,” and have begun actual operation of a pharmaceutical production facility using a continuous batch production system. Based on the verification we have carried out to date, we anticipate that the production system we are currently developing will allow us to reduce energy consumption by 80 percent in comparison to conventional methods.
Click here for details.
https://www.mt-pharma.co.jp/news/2021/MTPC210617.html (Japanese language only)

Beginning in fiscal 2022, the Group has been working with Ono Pharmaceutical Co., Ltd., and Shionogi & Co., Ltd., in joint transport of pharmaceuticals and medical products in Japan, promoting a reduction in CO2 emissions by reducing the number of vehicles used in transport. Click here for details.
(Japanese language only)

Introduction of Hybrid Vehicles

The Group is shifting steadily from gasoline-powered vehicles to hybrid vehicles and promoting eco-driving to reduce greenhouse gas emissions from company-owned vehicles.

  FY2019 FY2020 FY2021 FY2022
Ratio of company-owned vehicles that are hybrid vehicles 67% 64% 64% 67%
CO2 emissions from company-owned vehicle fuels
CO2 emissions 4,165 t-CO2 3,131 t-CO2 3,576 t-CO2 3,520 t-CO2
Ratio of reduction in CO2 emissions
(compared to fiscal 2019)
25% 14% 15%

Renewable Energy Use

Use of renewable energy that does not emit greenhouse gases is an effective measure to contribute to climate change mitigation.

The Group has installed new solar power generating equipment at Mitsubishi Tanabe Pharma Korea (Hyangnam Plant), and carbon-free power has been installed at the Shonan Office and at some Group offices in Europe. Going forward, we will consider switching to electricity from renewable sources for procurement of power at other major Group bases.

Towards carbon neutrality

We annually update certifications such as ISO14001 and ISO45001 at the Mitsubishi Tanabe Pharma Korea (Hyangnam Plant) in proactive KAITEKI initiatives aimed at safety, health, and the environment.
In particular, in order to respond to climate change and enhance our corporate competitiveness, we participate in the Korean RE100 (K-RE100) and in September 2022 installed solar power generation equipment to expand our use of renewable energy.
As of May 2023, this equipment had generated 61,695 kWh of electricity since starting operation, contributing to carbon neutral activities with a reduction in CO2 emissions of 28,997 kg-CO2. Sustainable use maximizes energy efficiency and reduces carbon emissions, and we even anticipate significant economic benefits.
Beginning with this installation of solar power generating equipment, we move towards utilizing renewable energy, planning and moving ahead with our efforts steadily, and thus leading society as a global business.
Looking to the future, at the Hyangnam Plant we will continue with KAITEKI initiatives to maintain our position as a plant with future value, and improve our corporate competitiveness.

Hyangnam Plant employees

Controlling Fluorocarbons Emissions

The Group is working to prevent leaks of fluorocarbons, which add to the effects of ozone layer depletion and greenhouse gases. Equipment containing fluorocarbons installed in domestic bases is properly managed with a ledger in accordance with the Law Concerning the Discharge and Control of Fluorocarbons revised in 2020. In addition, we comply with installation standards and conduct regular equipment inspections and when disposing of the equipment, we recover and destroy the fluorocarbons and maintain a record of this for three years.
Furthermore, when installing equipment containing fluorocarbons, we select a model that takes into account global warming potential and energy-saving performance.

In fiscal 2022, at the Group’s domestic production and research bases, the volume of fluorocarbons recovered and destroyed was 165 kg, and the leakage volume was 179 kg (799 tons-CO2eq). The CO2-equivalent leakage volumes for domestic Group companies were below the threshold for reporting to the national government for all years since 2015 when the leakage reporting system was established.

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