Climate Change Measures

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 an important management issue to address.
Astellas has made a long-term commitment to taking measures against climate change and decided to aim for achieving a 90% reduction in GHG emissions and a 10% neutralization of residual emissions to achieve Net Zero by 2050, based on 2015, for Scope 1 and 2 and Scope 3, respectively. In addition, the Science Based Targets (SBT) initiative approved Astellas’ GHG emissions reduction targets through 2030.
To address climate change as a management issue, we have adopted as targets, the 1.5℃ (Scope 1 and 2) and well-below 2℃ (Scope 3) targets of the Paris Climate Agreement.

Progress on the Action Plan (SBT)

Our results calculated based on the GHG Protocol are as follows:

Progress on Environmental Action Plan(Scope1+2)

Progress on Environmental Action Plan (Scope 3)

	Fiscal 2015 (base year)	Fiscal 2021	Fiscal 2022	Fiscal 2023
GHG emissions (Scope 3) (Tons)	1,378,972	677,463	893,617	1,121,350
Ratio to Base-year (%)	--	-51%	-35%	-19%

FY2015, 2021, 2022 data was re-calculated due to some reasons. Please refer to footnote of "Scope 3 emissions (past 3 years)" for details on re-calculation. 

Scope 3 emissions (past 3 years)

Changes in Actual GHG Emissions Volume by Area

（Unit: Tons）

ARC
	Fiscal 2015	Ratio (%)	Fiscal 2021	Ratio (%)	Fiscal 2022	Ratio (%)	Fiscal 2023	Ratio (%)
Japan	166,857	75	89,725	76	89,709	76	92,325	76
Scope 1	61,036		46,662		44,253		40,601
Scope 2	105,821		43,063		45,456		51,724
US	31,185	14	12,448	10	12,673	11	14,826	12
Scope 1	20,742		5,686		6,418		8,245
Scope 2	10,443		6,762		6,256		6,580
Established Markets	16,725	8	9,913	8	8,917	8	8,392	7
Scope 1	13,073		9,115		8,324		7,919
Scope 2	3,652		798		593		473
Greater China	3,349	2	3,956	3	3,697	3	3,535	3
Scope 1	14		47		29		6
Scope 2	3,335		3,909		3,668		3,529
International Markets	4,628	2	2,636	2	2,647	2	3,172	3
Scope 1	3,635		2,181		2,147		2,431
Scope 2	994		455		499		741
Total	222,744	-	118,679	-	117,644	-	122,250	-
Scope 1	98,500		63,691		61,171		59,203
Scope 2	124,244		54,988		56,473		63,047

Non-energy GHG emissions are less than 5% 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.

Investment Plan for Climate Change Mitigation Measures

In fiscal 2023, Astellas completed approximately 600 million yen in investments with a focus on the promotion of renewable energy use at each facility (including the installation of solar panels) and energy-saving measures (such as upgrading to air conditioning-related energy-saving equipment and introducing LED lighting), resulting in a reduction of GHG emissions of 4,825 tons.
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 support and cooperation with our measures to reduce GHG emissions, including transactions among our production contractors.

Details of Scope 3 are available in the section on indirect GHG emissions (Scope 3).

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 (fuel use) and Scope2 (electricity use in electric vehicles ).

（Unit：Tons）

ARC
	Fiscal 2021	Fiscal 2022	Fiscal 2023
Total emissions from sales fleets	12,697	12,378	13,380

When it cannot be directly measured, CO2 emissions are estimated based on fuel purchase costs, annual average fuel usage by company vehicles or private vehicles (if used in sales activities) and other factors. Figures do not include data from Asia/Oceania region (with partial exception).

Incorporating Sustainability Indicators into Executive's Incentive-based Renumeration

Starting from the 19th term business year (fiscal 2023), Astellas has incorporated a new key performance indicator by setting sustainability performance targets for bonus (short-term incentive remuneration) for Directors who are not the Audit & Supervisory Committee Members (and excluding Outside Directors). By linking management strategies with incentive compensation, Astellas aims to steadily promote environmental initiatives.
For details of remuneration for Directors, please refer to page 74 of the Notice of Convocation of the 19th Term Annual Shareholders Meeting.

Convocation of the 19th Term Annual Shareholders Meeting

Using Renewable Energy

The use of renewable energy is one of the most effective climate change countermeasures. Astellas is introducing photovoltaic panels and wind power generation, and such equipment as biomass boilers, and purchases electricity derived from renewable energy sources to reduce GHG emissions. We will continue to strive expanding the use of renewable energies to help achieve Net Zero.

Usage of renewable energy

	Fiscal 2015	Fiscal 2021	Fiscal 2022	Fiscal 2023
Total energy used (TJ)	3,010	2,089	2,048	2,005
Energy derived from renewable energy sources (TJ)	210	392	387	373
Renewable energy rate (%)	7	19	19	19
Total electricity (GWh)	279	226	227	229
Electricity derived from renewable energy sources (GWh)	48	98	95	91
Renewable energy rate (%)	17	43	42	40

Starting in April 2020, Astellas switched all electricity purchased by its three business sites in Ibaraki Prefecture (Tsukuba business site, Tsukuba Tokodai business site, and Takahagi business site) to an electricity rate plan deemed to be 100% hydroelectric(*). (This enabled a reduction of emissions equivalent to about 24,000 tons of GHG emissions in fiscal 2023.) 
Moreover, we are also moving ahead on switching to electricity generated by renewable energy sources in areas outside of Japan. 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’ Carbon Neutrality Action Plan

Astellas is participating in the Carbon Neutrality Action Plan^* formulated by the Federation of Pharmaceutical Manufacturers’ Associations of Japan, which is based on requests from the Federation of Economic Organizations. In February 2023, Astellas committed to a policy of reducing GHG emissions from operations to Net Zero by 2050.

* With a long-term vision of Net Zero CO2 emissions by 2050, the Phase II target (2030 target) is to reduce CO2 emissions in fiscal 2030 by 46% (from laboratories, plants, offices and vehicles used in sales) from the fiscal 2013 level.