Mitigating and adapting to the threat posed by climate change requires active involvement by national governments, local governments, corporations, citizens, and others. Astellas recognizes that climate change will become a constraint on conducting sustained corporate activity, and considers it one of management's most important problems to address.

Astellas has adopted the method for setting reduction targets recommended by the Science Based Targets (SBT) Initiative. This method is designed to achieve the 2°C target of the Paris Agreement, which entered force in 2016. In November 2018, the SBT Initiative certified the targets laid out in Astellas’ Environmental Action Plan.
In the review of risks and opportunities that the SBT target setting process and climate change will present to businesses, we have adopted the 2°C Scenario of the International Energy Agency (IEA 2DS). Guided by IEA 2DS, we will promote measures from a medium- to long-term perspective.

Progress on Action Plan (SBT): Change in Actual GHG Emissions Volume

Our progress toward SBT targets calculated based on the GHG Protocol is as follows:

Progress on Environmental Action Plan (Scope 3 / revenue)

	Fiscal 2015	Fiscal 2018	Fiscal 2019	Fiscal 2020
GHG emissions (Scope 3) (Tons)	271,010	221,905	229,953	194,414
Revenue (billion Yen)	1,373	1,306	1,301	1,250
Emission per unit of revenue (tons/billion Yen)	197	170	177	156
Ratio to Base-year (%)	--	-14.0	-10.5	-21.2

* The third-party assurance covers GHG emissions (Scope 3) and emission per unit of revenue.
* As the scope and method of aggregation for Scope 3 Category 1 have been revised, GHG emissions and emission intensity have been revised retroactively to FY2018.

Changes in Actual GHG Emissions Volume

The actual volume of GHG emissions of Astellas in fiscal 2020 was 123 kilotons (Scope 1: 63 kilotons, Scope 2: 59 kilotons).

Changes in Actual GHG Emissions Volume by Area

(Unit: Tons)

	Fiscal 2015	Ratio (%)	Fiscal 2018	Ratio (%)	Fiscal 2019	Ratio (%)	Fiscal 2020	Ratio (%)
Japan	166,857	75	155,379	80	132,888	80	94,522	77
Scope 1	61,036		56,422		48,842		46,217
Scope 2	105,821		98,957		84,046		48,305
Americas	31,837	14	17,505	9	13,666	8	13,546	11
Scope 1	21,329		10,205		8,442		7,479
Scope 2	10,508		7,300		5,223		6,067
EMEA	19,970	9	17,450	9	15,289	9	10,626	9
Scope 1	16,093		15,415		13,596		9,551
Scope 2	3,877		2,035		1,693		1,074
Asia/Oceania	4,080	2	4,039	2	4,295	3	3,903	3
Scope 1	41		51		18		29
Scope 2	4,039		3,988		4,277		3,874
Total	222,744		194,373		166,138		122,596
Scope 1	98,500	-	82,093	-	70,898	-	63,276	-
Scope 2	124,244		112,280		95,239		59,320

* Non-energy GHG emissions are less than 1% of total emissions and therefore not included in the disclosed data.

Our Efforts to Reduce GHG Emissions

In order to reduce GHG emissions, Astellas must implement management practices that involve the entire Group from a medium-term perspective. Astellas’ manufacturing plants, research centers, sales and marketing divisions, and offices are implementing a variety of initiatives with the aim of mitigating climate change.
Regarding tangible elements, efforts to improve facilities, which include the introduction of high-efficiency equipment and the conversion to alternative fuels, are expected to make a significant contribution to reducing the level of GHG emissions generated by energy sources. Regarding intangible aspects, employees’ participation in energy saving through improvements of daily work is also important. To this end, each facility adopts a two-pronged approach, comprising measures related to both tangible and intangible elements.

Promotion Framework and Initiatives for Climate Change Measures

Astellas has established the EHS Committee as a special task force to discuss measures to deal with various environmental issues, including climate change mitigation measures. Members from regional bases participate in discussions on methods to save energy and reduce GHG emissions throughout the Group based on an analysis of the risks and opportunities that climate change presents to our business, and so forth.
Matters are discussed and decided in EHS Committee and are referred to the Executive Committee and the Board of Directors for discussion depending on their importance. Through this process, Astellas decides on these matters.

Analysis of the Risks and Opportunities That Climate Change Presents to Our Business

Based on IEA 2DS, we carry out scenario analysis regarding changes in the external environment due to such factors as international policy trends and emissions trading systems, the impact on work operations of physical changes caused by climate change, and assessments by stakeholders concerning our measures to mitigate and adapt to climate change. We believe that understanding the conceivable risks and moving forward with medium- to long-term measures to minimize risk will lead to opportunities for our business to be sustainable.

Investment Plan for Climate Change Mitigation Measures

In fiscal 2020, Astellas planned to invest approximately ¥1.1 billion in mainly energy-saving measures at each business facility, the renewal of air conditioning equipment, and the introduction of LED lighting. An investment of ¥760 million was actually completed, resulting in reduction of 741 tons of GHG.
Going forward, Astellas will keep on conducting continuous reviews of investment plans related to matters such as introducing renewable energy.

Understanding GHG Emissions in the Supply Chain

Although the Environmental Action Plan concerning climate change is targeting emissions directly generated by business activities (Scope 1 and Scope 2), Astellas is also striving to assess emissions produced throughout the entire supply chain (Scope 3). We have also set SBTs for GHG emissions from major categories within Scope 3, and are striving to reduce them. In addition, we encourage our production contractors to support and cooperate with our measures to reduce GHG emissions.
Details of Scope 3 are available in the section on indirect GHG emissions (Scope 3).

Priority Use of Gaseous Fuel

At Astellas’ research and production bases, we use boilers fueled by city gas, LPG and LNG (liquefied natural gas), all of which generate low GHG emissions during combustion. These boilers not only contribute to reducing GHG emissions but also to reducing SOx emissions, another air pollutant.

Introduction of Energy Monitoring Systems

Knowing exactly how much energy we use is useful for the formulation of new strategies. We have introduced energy monitoring systems that can visually monitor energy usage at our facilities.

Reduction of GHG Emissions Generated by Sales Activities

Since fiscal 2008, Astellas has been striving to reduce GHG emissions associated with the use of sales fleets. In each region, we are continuously switching over to vehicles with low environmental impact (e.g. hybrid cars, electric vehicles). In Japan and the US, where the rate of introducing hybrid vehicles is high, the volume of GHG emissions relative to the number of vehicles has been reduced more than in other regions.
GHG emissions associated with the use of sales fleets are reported under Scope 1.

Changes in GHG Emissions Volume

(Unit: Tons)

	Fiscal 2018	Fiscal 2019	Fiscal 2020
Total for each region	23,725	20,333	12,980
Japan	4,114	3,226	2,531
Americas	9,172	7,902	4,913
EMEA	10,439	9,205	5,536

When it cannot be directly measured, the actual fuel usage is estimated from fuel purchase cost and average fuel price in the reporting period, or by mileage and fuel consumption (catalog value). In certain parts of EMEA, the volume of CO2 emissions from company vehicles or private vehicles (if used in sales activities) are calculated by estimating fuel usage from the number of vehicles in use for sales activities. We are currently assessing the usage record of sales vehicles in the Asia/Oceania region.

Impact of COVID-19

In fiscal 2020, COVID-19 had an impact on our business activities. Activities continued for pharmaceutical development and supply at research and production bases, but significant restrictions were placed on sales activities and employees’ business trips. As a result, the limitations on business activities had an impact on greenhouse gas emissions, with reduced use of vehicles for sales activities resulting in a reduction of about 7,400 tons in emissions and restrictions on aircraft use for business trips resulting in a reduction of about 28,800 tons of emissions (compared to fiscal 2019). As the pandemic is suppressed, we forecast this impact will gradually contract.

Using Renewable Energy

The use of renewable energy is one of the most effective climate change countermeasures. Astellas is proactively introducing photovoltaic panels and wind power, and such equipment as biomass boilers, to its facilities. All energy generated through these means is consumed at these facilities.
Moreover, we purchase electricity generated by renewable energy sources. As a result, we are indirectly suppressing GHG emissions.

Usage of Renewable Energy (Fiscal 2020)

Offices	Type of renewable energy	Energy consumed
Kerry Plant	Wind turbine generation (Power capacity 800 kW)	2,074 MWh
	Wood chip biomass boiler (Power capacity 1.8 MW)	44,932 GJ
	Purchase of electricity generated by renewable energy sources	7,380 MWh
	Photovoltaics	109 MWh
Dublin Plant	Purchase of electricity generated by renewable energy sources	5,555 MWh
Meppel Plant	Purchase of electricity generated by renewable energy sources	12,148 MWh
Leiden	Purchase of electricity generated by renewable energy sources	1,464 MWh
	Use of geothermal heat	1,365 GJ
Europe HQs	Purchase of electricity generated by renewable energy sources	389 MWh
Spanish Sales Affiliates	Purchase of electricity generated by renewable energy sources	313 MWh
US HQs	Use of geothermal heat	3 GJ
Universal Cells	Purchase of electricity generated by renewable energy sources	813 MWh
Tsukuba Research Center	Purchase of electricity generated by renewable energy sources	37,940 MWh
	Photovoltaics	46 MWh
Tsukuba Bio Research Center	Purchase of electricity generated by renewable energy sources	8,630 MWh
Takahagi Facilities	Purchase of electricity generated by renewable energy sources	20,537 MWh
Yaizu Facilities	Use of geothermal heat (can not be measured)	-

Starting in April 2020, Astellas switched all electricity consumed by its three research and production facilities in Japan (Tsukuba Research Center, Tsukuba Biotechnology Research Center and Takahagi Chemistry & Technology Development Center) to hydroelectric power(*), which is free of greenhouse gas (GHG) emissions.  This enabled a reduction of emissions of 29,700 tons. Moreover, we are also moving ahead on switching to electricity generated by renewable energy sources in areas outside of Japan as well as it becomes possible to do so.
Looking ahead, Astellas will continue to explore opportunities for using renewable energy, and it will also consider formulating targets for the use of renewable energy.
(*) The Aqua Premium plan provided by TEPCO Energy Partner, Inc.

Participation in the Federation of Economic Organizations’ Commitment to a Low-Carbon Society

Astellas is participating in the commitment to a low-carbon society* formulated by the Federation of Pharmaceutical Manufacturers’ Associations of Japan, which is based on requests from the Federation of Economic Organizations.

*To reduce the amount of carbon dioxide emissions from pharmaceutical manufacturers in fiscal 2020 by 23% based on the amount of emissions in fiscal 2005.

Support for Task Force on Climate-related Financial Disclosures (TCFD) Recommendations

Task Force on Climate-related Financial Disclosures (TCFD), established by the Financial Stability Board (FSB), published a report recommending the disclosure of climate-related information in June 2017. Astellas announced its support for the TCFD recommendations in December 2020.