Astellas and sustainability

Developing a sustainable society by leveraging Astellas’
strengths and capabilities

Astellas and sustainability

Astellas is committed to deepening our engagement in sustainability as outlined in our strategic goal 4 in the Corporate Strategic Plan 2021 (CSP2021). Our approach focuses on contributing to society through our core business, creating a positive cycle that enhances both societal and corporate sustainability. We have identified several material and environmental issues that guide our sustainability efforts.

Access to Health

We prioritize access to health by enhancing product availability and collaborating with external partners.

 

Our achievements include:

  • Approximately 11,000 patients treated through various access programs
  • More than 228,000 lives impacted through access to healthcare programs by Astellas
  • More than 31.9 million lives impacted through access to healthcare programs by the Astellas Global Health Foundation(AGHF)

Environmental initiatives

We are taking proactive measures to conserve the global environment and share details of our initiatives.

 

We promote:

  • Greenhouse gas emission reduction in line with the Paris Agreement's 1.5℃ goal
  • Effective use of water resources
  • More than lives impacted through access to Improvement of waste management

Astellas is dedicated to fostering a sustainable future for both society and our organization. We are honored that our efforts are continually recognized, for example, we have:

been named on the FTSE4Good Index for 14 consecutive years,

ranked first in Forbes Japan’s natural capital and decarbonization management rankings, and

been included as a constituent in all the ESG investment indexes adopted by the Government Pension Investment Fund (GPIF) in Japan.

Our vision

Our vision

“Astellas is committed to a good cycle of improving the sustainability of society and our company through our core business.”

Naoki Okamura

Representative Director,  President and CEO

In recent years, dramatic changes to the environment and economy have led to a growing expectation from stakeholders for the sustainability of society. We believe that companies are expected to contribute to society proactively and positively through business activities.
In the healthcare field, societal expectations are shifting to therapeutic areas with high unmet medical needs, and innovative healthcare solutions based on the next generation modalities and digital technology are eagerly anticipated.

 

Under our VISION of being “On the forefront of healthcare change to turn innovative science into VALUE for patients,” Astellas creates innovative new drugs and healthcare solutions that drive the improvement of patient access to healthcare and better outcomes.
Astellas will gain trust from our stakeholders by our effort to address societal issues through our business. It will, then, improve sustainability of Astellas’ own business and create a good cycle of further contribution to sustainability of the society. That will lead to realizing Astellas’ mission “Sustainable enhancement of enterprise value.”

 

Additionally, aligned with society’s high demand, we strive to fulfill social responsibility through our efforts to address climate change and other environmental problems.

 

Astellas has embedded the strategic goal to "deepen our engagement in sustainability" in our Corporate Strategic Plan 2021, and we manage the business with awareness to sustainability. Through our Materiality Matrix, which guides our sustainability efforts, we have identified 19 key issues from the perspective of significance for society and Astellas. 
For each of 9 high-priority materiality issues, we have formulated an action plan, and the entire company is working together to proactively address these issues.

 

Our efforts in sustainability will lead to increased enterprise value in two ways.

Astellas’ sustainability story

Transforming to be a cutting-edge, VALUE-driven life science innovator

There are patients and their families suffering from diseases with no or limited treatment options that cannot provide satisfactory outcome in society. Astellas is pursuing transformative healthcare solutions that do not simply alleviate the symptoms of diseases. Instead, we are developing innovative therapeutics, such as cell and gene therapies, which are disease-modifying and directly address the underlying cause of the disease. Symptomatic treatment not only places a burden on the patient through commuting to the hospital and inpatient stays, but also increases the burden on their families who nurse and care for them as the social and economic losses are not small. By actively creating innovative treatment measures, Astellas aims to free patients and their families from years of treatment and care, while significantly improving symptoms with only a few treatment cycles. As a result, patients can return to their normal lives sooner, thereby reducing the overall load on the local healthcare system far and wide from the constant need for medical treatment.

 

We believe that one of the most important driving forces to create and deliver great VALUE to society is an organizational culture that realizes innovation. Astellas will continue our endeavor to cultivate an organizational culture and achieve sustainable value creation through acquiring and developing talent in order to provide the access to healthcare solutions we have created to as many patients as possible. In addition, in order to sustainably create innovative therapeutic approaches and other innovations, it is necessary to set appropriate prices for innovations. Astellas will also cultivate an environment and scheme to ensure that prices fairly reflect the value impact on society, including patients, their families, and the healthcare professionals who support patients' health.

Strengthening resilient and sustainable business operations to meet the expectations of society

Astellas manufactures products of excellence in quality at the global standard and continue to deliver safe products to patients. It is our mission to ensure the stable delivery of our products to patients under any circumstances. While ensuring the protection of human rights and safety of all those engaged in procurement, manufacturing, and distribution, ensuring resilient supply chain management in the change of external environment throughout the supply chain. In addition, we will continue to provide information to facilitate the safe and appropriate use of our products by patients. We will foster trust from society by always thinking of patients and their families who are suffering from diseases, considering what healthcare solutions are best for them and what Astellas' products can contribute to them, and continuing our activities in an ethical manner. We act with compliance and high ethical business practices in all aspects of our business as well as the provision of product information. In addition, we contribute to the societal sustainability with evolving our governance to ensure fair management decisions and operations.

Astellas’ sustainability governance

Contributing to a more sustainable society is essential for enhancing Astellas’ Sustainability.

Realizing our mission of making Astellas sustainable

Astellas recognizes that our contribution to social sustainability is essential for our sustainability as an organization. Astellas is committed to engaging in the sustainability of society by fulfilling our social responsibilities as a pharmaceutical company, including but not limited to providing healthcare solutions such as a pharmaceutical products that satisfy unmet medical needs. As a result, we earn trust from society for both the Company and our products, which enhances Astellas’ sustainability.
 

This positive cycle will lead to the realization of our mission, "sustainable enhancement of enterprise value" through fulfillment of our raison d'etre "contribute toward improving the health of people around the world through the provision of innovative and reliable pharmaceutical products." In short, for Astellas, contributing to the sustainability of society means the realization of its philosophy.
 

The activities we have carried out under the aforementioned philosophy continue to be well-received externally.
 

For example, Astellas has been named to the FTSE4Good Index Series, a representative investment index, for 12 consecutive years. Astellas is also included as a constituent in all of the ESG investment indexes adopted by the Government Pension Investment Fund (GPIF) in Japan, which are FTSE Blossom Japan Index, MSCI Japan ESG Select Leaders Index, MSCI Japan Empowering Women Index (WIN) and S&P/JPX Carbon Efficient Index.

Asastellas-interaction-with-society

Engaging in VALUE creation and VALUE protection

Sustainability that Astellas is engaged in has two aspects: value creation and value protection.

value-creation-and-protection

Governance for contributing to sustainability

governance-astellas-sustainability

Key issues and materiality

Astellas addresses key issues to adapt to the changing needs and expectations pressed for by society.

Astellas recognizes that our efforts to evolve sustainability will lead to increased enterprise value. The environment surrounding both society and business has changed significantly. In response to this shifting landscape, in FY2021 we identified and prioritized key issues and updated our Materiality Matrix as a compass to our sustainability efforts.

 

In preparing a new Materiality Matrix, Astellas identified 19 key issues. We then prioritized 9 material issues (Materiality) from this group. We believe that prioritizing and subsequently addressing the Materiality will set Astellas on the path to “transforming to be a cutting-edge, VALUE-driven life science innovator”, and “strengthening resilient and sustainable business operations to meet the expectations of society”. This, in turn, will lead to improved sustainability for both society and Astellas.

Materiality matrix

Materiality Matrix

Steps in identifying materiality

To identify key issues, Astellas analyzed various references, such as SDGs-related frameworks (IIRC, SASB and GRI standard, ISO 26000the UN Global Compact's ten principles, TCFD recommendation), stakeholder engagement and communication, and topics covered by ESG ratings.

 

When updating Materiality Matrix in FY2021, we surveyed the shifts in sustainability trends since FY2017—the year of the previous Matrix update. We also ensured alignment with Corporate Strategic Plan 2021 (CSP2021) and acknowledged industry-specific issues. As a result, we identified 19 key issues.

Astellas developed Materiality Matrix by prioritizing the key issues identified from the perspectives of significance to society and Astellas.

 

Societal Significance, shown on the vertical axis of the matrix, was determined by considering the depth of interest from global stakeholders—multinational organizations, governments, NGOs, investors, and industry associations—and the scale of economic losses caused by social issues. Significance for Astellas, shown on the horizontal axis, was determined by assessing Astellas’ opportunities for utilizing its capabilities and assets to contribute to the resolution of issues. The assessment also included management perspectives based on interviews with Top Management.

The prioritized key issues were refined and validated through the information provided by various stakeholders and a series of interviews with experts. The Sustainability Committee* held further discussions before the Executive Committee reviewed and deliberated on the findings. Finally, the Materiality Matrix was approved by the Board of Directors.

 

Materiality Matrix was refined and validated through the information provided by various stakeholders—institutional investors, industry associations, NPOs, and NGOs—and a series of interviews with experts.
The Sustainability Committee, consisting of cross-functional Astellas employees, held further discussions before the Executive Committee* reviewed and deliberated on the findings.  Finally, Materiality Matrix was approved by the Board of Directors.

 

Materiality Matrix is reviewed and verified by Sustainability (Functional Unit) annually and updated when necessary. Related targets and action plans are also established to address the material issues.

*The Committee discusses material issues concerning business strategies, product strategies, corporate management, and personnel of the Astellas Group companies.

Two pillars for evolving sustainability

Transforming to be a Cutting-Edge, VALUE-driven life science innovator

Strengthening resilient and sustainable business operations to meet the expectations of society

Environmental Sustainability

Environmental Sustainability

Approach for two pillars

Material Issues Mid-term Priorities for Astellas Initiatives Our Commitments by FY 2025
Access to Health

Talent and organizational culture for realizing innovation

Fulfilling unmet medical needs by creating novel healthcare solutions

Transformative treatment through innovative therapeutic methods

Value based pricing
Translate innovative science into VALUE through the Focus Area approach to R&D, introducing novel therapies and modalities to treat diseases with high unmet medical needs. Addressing unmet medical needs for provision of solutions that produce better outcomes than previously possible Aim to improve the lives of patients and caregivers around the world and contribute to reducing the overall load on the healthcare system.
  • Maximize patient access to Astellas innovations and enable them to achieve better outcomes.
  • Beyond the biopharmaceutical space, develop and commercialize novel healthcare solutions.
  • Providing comprehensive access programs throughout the product lifecycle.
  • Supporting healthcare system strengthening programs in partnership and Astellas Global Health Foundation.
  • Provide as many patients as possible with access to our products.
  • Impact more than 36 million people cumulatively) by 2025 by improving disease awareness, prevention, and access to healthcare services.
Advocate a value based pricing for stakeholders to ensure innovative medicines in new modalities contribute to the health of patients around the world and realize the sustainable healthcare system. Advocating for value based pricing as a basis to support access to medical innovations. Contribute to sustain healthcare systems through advocating for value based pricing.
  • Create an environment within Astellas that fosters innovation.
  • Align strategy with the right capabilities, embraced in a culture that promotes innovation.
Optimizing the number of people under one manager's control and reducing layers, reinforcement of succession planning, and cultivation of a culture ensuring psychological safety and encouraging active feedback. Foster talents and an organizational culture with trusted capabilities to deliver innovation.

Material Issues Mid-term Priorities for Astellas Initiatives Our Commitments by FY 2025
Compliance and ethical business practices

Product quality assurance and product safety

Responsible supply chain management

Safe and appropriate use of products

Sustains a resilient business that continuously supplies products during unpredictable or emergency situations.
  • Enhancing energy sourcing through investigating reinforcement of emergency power generation and introduction of renewable energy such as solar panels to own facilities.
  • Enhancing material sourcing and product supply networks through the various means including double sourcing and diversified distribution bases.
Establish a more sustainable and resilient value chain.
Further enhance capability to secure patient safety and product quality as well as optimizing customer interaction for maximizing VALUE for patients.
  • Fostering a Culture of Quality through leadership commitment, employee engagement and patient centric mindset.
  • Evolving customer experience with coordinated omnichannel engagement leveraging digital.
Ensure patient safety and product quality by fostering a Culture of Quality and by evolving customer experience.

Key Issues Mid-term Priorities for Astellas Initiatives Our Commitments by FY 2025
Reduction of environmental burden

Climate change and energy
Reduce greenhouse gas emissions toward a goal consistent with the Paris Agreement's and achieve net zero emissions by 2050. Enhancing energy efficiency and shifting to renewable energy sources such as solar and wind power.

Reducing the carbon footprint of the supply chain.
Achieve by FY2025 the amount of reasonable reduction of greenhouse gas emissions target.*

*GHG emission reduction targets by FY2030.

  • Scopel+2 6316 reduction (base year: FY2015).
  • Scope 3 37.596 reduction (base vear: FY2015).

Sustainability Direction Performance Indicators (SDPIs)


*1PoC: Proof of Concept/To Confirm efficacy with key clinical data to decide progression to late-stage development

*2IND: Investigational New Drug

*3Breakthrough Therapy: Food and Drug Administration (FDA) program to facilitate the development and review of drugs for serious or life-threatening diseases.

*4Fast Track: A system of Food and Drug Administration (FDA) that provides priority review of new drugs with high therapeutic potential for diseases for which a cure is difficult to achieve.

*5PRIME: Priority Medicines / a system implemented by European Medicines Agency (EMA) to strengthen support for the development of medicines for unmet medical needs.

*6Priority Review: A system to give priority to medicinal products that meet certain requirements, in addition to medicinal products designated as orphan medicinal products.

*7SAKIGAKE Designation System: Japanese system to facilitate the domestic development of innovative medicines for life-threatening diseases for which there is no effective treatment, to ensure the early commercialization of such medicines in Japan, ahead of the rest of the world.




*12Span of Control: Number of subordinates managed by one manager



Scope 1+2
63% reduction (base year: FY2015)

Scope 3
37.5% reduction (base year: FY2015)


ISO26000

Astellas has verified the efficacy of management based on global standards for the core subjects and issues of social responsibility addressed in the International Organization for Standardization (ISO)’s guidance ISO26000. ISO26000 outlines the need to carefully consider seven core subjects: organizational governance, human rights, labor practices, the environment, fair operating practices, consumer issues, and community involvement and development. The following Astellas initiatives follow this guidance:

United Nations Global Compact

Astellas follows the United Nations Global Compact across our sustainability approach.

 

In October 2011, Astellas declared our support for the United Nations Global Compact, which consists of the ten principles set out by the UN on human rights, labor, the environment and anti-corruption.

 

Our declaration of support is based on our commitment realizing our business philosophy “contribute toward improving the health of people around the world through the provision of innovative and reliable pharmaceutical products”. We incorporate the ten principles of the UN Global Compact into our daily business activities and disclose them through reports, our website and other channels.

What is the UN Global Compact?

The UN Global Compact was set out by Mr. Kofi Annan, the former Secretary-General of the UN, at the World Economic Forum in Davos in 1999. It is a worldwide initiative aimed at realizing sustainable growth through voluntary participation by businesses.

The Ten Principles of the UN Global Compact

Stakeholder communications

Astellas operates within a diverse network of stakeholders, including patients, healthcare providers, employees, shareholders, investors, business partners, and governments, all of whom are significantly impacted by our activities. Understanding and addressing their needs is crucial for maintaining trust and sustainably enhancing our enterprise value. We engage with stakeholders through various channels, such as town halls, shareholder meetings, and clinical trial updates, ensuring timely and impartial information disclosure. By fostering constructive dialogue and transparency, we aim to sustainably increase Astellas' enterprise value while contributing to the overall sustainability of society.

Astellas group’s stakeholders


info

Multi-Stakeholder Policy

 

Astellas recognizes the importance of value co-creation with a diverse range of stakeholders, including employees, business partners, customers, creditors, and local communities. We are committed to engaging in appropriate collaboration with these stakeholders.

   

Awards and recognition