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Supervisory structure
The Board of Directors views climate change countermeasures as a key sustainability issue and reviews the progress of initiatives on a quarterly basis. Astellas Sustainability submits annual reports to the Board each fiscal year to facilitate the monitoring of these initiatives, including efforts to address climate change. Through this monitoring process, the Board oversees the effectiveness of management.
Executive structure
Sustainability issues are recognized as top priorities for Astellas, with key performance indicators (KPIs) established and monitored. For climate change, progress is assessed through greenhouse gas emission reduction targets and KPIs, which are aimed to be met by 2030. The adoption of renewable energy is also a crucial metric for measuring progress. The Sustainability Committee, chaired by the Head of the Sustainability Department and reporting to the Chief Strategy Officer (CStO), manages the Environmental Action Plan. The Committee reviews Astellas' Environmental Action Plan every five years to ensure its continued relevance and to suggest improvements as needed. Additionally, the Committee evaluates long-term plans for greenhouse gas reduction initiatives and the content of the Company’s TCFD disclosures.
Please refer to the integrated report for details on how sustainability performance targets are integrated into the performance evaluation indicators for Executive compensation.
Integrated Report
To identify and prioritize the issues that are most important to society and our business, Astellas carries out a materiality assessment and uses it to guide our sustainability efforts. Under the Astellas Materiality Matrix, reviewed in the fiscal year ended March 2022, climate change and energy are recognized as “very important” in their significance for both society and Astellas.
Astellas’ Environmental Action Plan sets out short-term and medium-term targets for our activities regarding the key points of the Company’s Environment, Health & Safety Guidelines. Astellas renews action plans on a rolling basis, by reviewing progress and conditions during the previous year and incorporating findings into the action plan for the following year. The plans outline efforts put in place to reduce the environmental burden and ensure the Company acts with integrity in reducing potential risks in order to protect enterprise value.
An in-house cross-functional team for disclosures was established to conduct a scenario analysis. The team analyzed Astellas' business and climate-related risks and opportunities, on the assumption that transition risks would materialize under a 1.5°C scenario for climate change and physical risks would materialize under a 4°C scenario. The time horizons examined were short-term (3 years), medium-term (10 years), and long-term (20-30 years). Since FY2021, we carried out climate risks and opportunities analysis on an annual basis. In FY2024, the team conducted a physical risk analysis of key locations for Astellas and its value chain. The results of the analysis were reviewed by the Sustainability Committee.
| Climate-Related Risks | Potential Impacts | Financial Impacts | Affected Period | Astellas’ Resilience |
|---|---|---|---|---|
| Transition Risks (risk materializing at 1.5 °C increase) | ||||
| Policy and Legal | ||||
| Increased pricing of GHG emissions (costs if paying a carbon tax) | Business sites that have not introduced renewable energies may have to add payment of a carbon tax to their costs. | 1.1 billion yen in FY2030 assuming a carbon tax of $100 per ton | Medium to long-term | Some of the electricity consumed at the business site is generated internally by using renewable energy sources such as wind power and solar power. Switch to purchasing energy derived from renewable sources at business sites is being promoted. The purchase of carbon credits to reduce Scope 1 emissions and measures to control costs associated with the purchase will be issues for consideration. |
| Purchased goods and services (Scope 3 Category 1) may be subject to carbon tax, which increases the burden when added to the procurement price. | 10 billion yen in FY2030 assuming a carbon tax of $100 per ton | Medium to long-term | Scope 3 |
|
| Obsolescence and impairment loss on existing facilities accompanying GHG emission regulations | Possibility of being asked to discard facilities due to strengthening of environmental regulations. Refrigeration equipment using freon gas. Vehicles that use fossil fuel may no longer be available in some countries after 2035. | No significant impact | Medium to long-term | There are no existing facilities or assets that we are required to dispose of at this moment. Regarding freon gas, we will take appropriate measures that comply with laws and regulations. From 2030 onwards, we need to respond to a required change in automotive vehicles (shift from internal combustion engines to electric motors / EVs and fuel cells). Shift to EVs for sales fleets and trucks and modal shift of transportation will have an impact on business operations. |
| Technology | ||||
| Costs to transition to lower emissions technology | Costs arise when investing in low emission equipment. | 1.2 billion yen based on past climate-change investment plan | Near to long-term | Select and invest in efficient projects to reduce the carbon tax burden. Explore non-investment alternatives, such as power purchase agreement, for significant projects like solar panel electricity generation. |
| Market | ||||
| Increased cost of energy and raw materials | Rising energy and raw material prices lead to higher costs exacerbated by inflation. | An increase of 10 yen per 1 kWh unit of electricity will increase the cost burden by 2 billion yen. | Near to long-term | Increase of electricity and energy costs consumed at business sites due to regulatory changes would be an issue in the future.
However, we do not envisage a significant increase in the cost of raw materials for drug production due to climate change. We will reduce the impact of rising fossil fuel prices by using renewable energy-derived power. |
| Physical Risks (risk materializing at 4 ℃ increase) | ||||
| Acute | ||||
| Increased severity of extreme weather events such as floods | Operations halt at our business sites due to floods or other factors.Raw material and product supply is delayed due to damage in the supply chain caused by floods or other factors. | 500 million yen
Referred to the flood countermeasures of the Toyama Technical Center. |
Near to long-term | The planned investment for the Toyama Technology Center's flood response was estimated to be 500 million yen and comprises the following
- Install a 3m waterproof wall around the power receiving building
- Construction of substation equipment with a structure of 3m or more
- Purchase of generators If similar measures are required, a similar amount of investment will be considered. |
| Chronic | ||||
Changes in precipitation patterns
Rising mean temperatures |
Droughts will affect the operations of our plants and supply chain, resulting in delays in product shipments.
Rising average temperatures will have an impact on energy costs accompanying operation of air conditioners at business sites. |
No significant impact | Near to long-term | According to IPCC AR6 SPM SSP3-7.0 scenario, global sea level change in 2050 relative to 1900 is less than 0.5m. This level of change has no significant business impact. Changes in precipitation patterns do not have a material impact on Astellas’ operations. |
| Climate-related opportunities | Potential Financial Impacts | Affected Period | Astellas’ response | |
| Resource efficiency | Use of more efficient production and distribution processes
Use of recycling |
Reduced operating costs | Near to long-term | In order to maintain a stable supply of pharmaceuticals even during pandemic of infectious disease or natural disasters such as earthquakes, storms, and flooding, three logistics centers are operated in Japan. In European countries and the United States, warehouses shared by multiple pharmaceutical manufacturers are being used to streamline the distribution process. We collect exhaust heat from air conditioning units at Japanese manufacturing plants and research sites and use it to pre-heat the air supply to improve heat efficiency. |
| Energy source | Use of lower-emission sources of energy | Reduced exposure to GHG emissions and therefore less sensitivity to changes in cost of carbon | Near to long-term | Shifted boiler fuel from liquid fuel to gaseous fuels. We are moving ahead on introducing hybrid and electric vehicles in our sales fleet. We are working on using wind power generation and biomass boiler system at Kerry Plant in Ireland. |
| Products and markets | Development and/or expansion of low emission goods new products and services
Access to new markets |
Increased revenues through access to new and emerging markets | Near to long-term | For the spread of infectious disease in endemic areas due to temperature change and the need for new drugs for infectious disease treatment assumed by the problem of antimicrobial resistance, collaboration with the phage biologics researches course at a university to create engineered bacteriophages, could be viable solution. Climate change can change the geography of the morbidity associated with and severity of epidemics. Heart disease, respiratory disease, etc. may also increase. |
1.5℃ scenario: Refer to IPCC 6th Assessment Report (AR6) Summary for Policymakers, “Global Warming of 1.5℃” (IPCC special report), “Net Zero by 2050” (IEA). To achieve significant reduction of greenhouse gas emissions, implementation of several measures such as carbon prices and the spread of EVs are assumed.
4 ℃ Scenario: Refer to SSP3-7.0 of IPCC 6th Assessment Report, Working Group I, Summary for Policymakers (SPM), released in August 2021. As extreme weather, we assumed an increase in the frequency of high temperatures, heavy rains, and droughts.
The climate change physical risk geographical analysis
IPCC reports [1] have pointed out that extreme weather events due to climate change are on the rise. However, there is a high degree of uncertainty as to how the transition to a decarbonized society will proceed, and it is difficult to predict the impact this will have on Astellas' business in the future. We conducted a scenario analysis on the impact of physical risks (flood, wind, wildfire, heat) on the value chain, including our own business locations, manufacturing contractor locations and logistics center locations.
The Company's offices, manufacturing facilities, and research centers, as well as value chain locations, were appraised. Most sites included in scope are in East Asia, North America and Europe. The definitions of short-term, medium-term and long-term are the same as those in the risk opportunity analysis, with the long-term corresponding to Astellas' Net Zero target year (2050). The climate scenarios referenced were three: a scenario in which the global average temperature rise since the Industrial Revolution is limited to below 2°C (SSP1-RCP2.6), a scenario in which it increases by 2-3°C (SSP2-RCP4.5), and a scenario in which it exceeds 4°C (SSP5-RCP8.5).
Reference
[1] Intergovernmental Panel on Climate Change Sixth Assessment Report (IPCC AR6) Synthesis Report – Summary for Policymakers https://www.ipcc.ch/report/ar6/syr/downloads/report/IPCC_AR6_SYR_SPM
Results of the risk matrix analysis
In the risk matrix analysis, the Astellas facility with the highest risk was the Shenyang Plant. In the 4°C scenario, increased risks of flood, heat, and precipitation in 2050 were detected as potential issues.
Note: The impact of the physical risks were analyzed based on where each site locates at a 90-meter grid resolution and thus currently-installed risk mitigations were not taken into considerations; therefore, actual impact could be different from the estimated loss herein.
Current risk vs change of risk in present day vs future (2050) under a >4°C scenario
The Risk Score is a normalized estimate of the average risk posed by each hazard. It is calculated using the one to three hazard metrics depending on the hazard under a 4°C scenario. For example, precipitation risk refers to 1-day maximum precipitation in a 1 in 100-year event, and wildfire risk refers to the annual wildfire probability.
Key hazards that have the potential to impact to Astellas
Precipitation
An increase in instances of heavy downpours across all sites is included in this analysis. At the location of Yaizu Technology Center, heavy rainfall of a once-in-50-year level was estimated at 357 mm per day in the 2020 model and 398 mm in the 2050 model using the 4°C scenario.
Changes in maximum precipitation per day with the highest risk
| Site Name | Location | Max precipitation in one day >4°C scenario (mm) | |||||
| 10-year return | 50-year return | ||||||
| Modelled 2020 baseline | 2050 | % change | Modelled 2020 baseline | 2050 | % change | ||
| Yaizu Technology Center | Japan | 252 | 279 | 10 | 357 | 398 | 12 |
Flood
The location of Toyama Technology Center is particularly concerning due to the potential for floods reaching up to 8.5 meters, which could occur once in a hundred years. Astellas should assess the flood risk measures at high-risk sites to consider they are reasonably prepared to address potential flood risks by 2050.
Heat waves
Heat is not currently a major risk to Astellas, on a scale of 1-100, the average current risk is 29. However, it has been suggested that heat risk may become apparent in the 4°C scenario by 2050. At the location of Astellas Gene Therapies Sanford, it was estimated that in 2050, the number of days per year with maximum temperatures exceeding 35°C will be 41. Worker productivity can be significantly impacted by heatwaves if buildings are not sufficiently cooled.
Astellas sites for days above 35°C in 2050 under a >4°C scenario
| Site Name | Location | Days above 35°C per year | % Change from Baseline |
| Astellas Gene Therapies- Sanford | USA | 41 | 78 |
High winds
Strong winds can cause extensive damage to buildings if they are not designed to withstand these storms. However, Japan has stringent building regulations which ensure that structures are designed to withstand wind speed loads that are determined based on their location, height and intended use.
Sites with wind gusts over 200 km/h in 1 in 100-year events in 2050
| Site Name | Location | Wind Gusts |
| Yaizu Technology Center | Japan | 232 |
Others
Cold has the highest current risk score, however the risk becomes much lower for all sites by 2050. Wildfire is of concern at one 3PL site and Hail/Thunderstorms do not pose a high risk to any locations.
Financial impacts
An assessment of the financial impact on Astellas was conducted for four hazards (flood, wind, wildfire and heat). For flood, wind and wildfire the results are in the form of Average Annual Loss, which is the aggregated, probability-weighted, impact across all the return periods. For heat the results are in the form of Productivity Losses which are based on the days that maximum temperatures exceed >35°C.
Estimated total financial loss from flood, wind, heat and wildfire is ¥3bn in 2050 under a >4°C scenario. Flooding accounts for almost two thirds of total direct loss (¥1.97bn) and 67% of this is from one site, Toyama Technology Center. The potential loss from flooding at Toyama accounts for 44% of direct total loss from all hazards combined. High wind speeds account for just over one third of the total direct loss (¥0.99bn). Loss from building damage accounts for 66% of the total losses. The sites associated with the highest financial impact are located in areas frequently hit by typhoons. Despite heat being one of the most significant climate hazards to Astellas under a >4°C in 2050, the financial impact from the risk is limited (compared to other hazards). This is due to the fact that all of Astellas’ sites have been fitted with adequate HVAC systems that are updated and maintained regularly.
Toyama Technology Center is expected to incur over ¥1.5 billion in losses primarily due to flooding in 2050 under a >4°C scenario. The bar charts below illustrate the top ten sites for total loss across Astellas-owned sites excluding Toyama, indicating that acute wind and flood events significantly impact Astellas-owned sites.
Top ten sites for potential loss (excluding Toyama Technology Center)
Processes for identifying and assessing climate-related risks
Risks within divisions, such as transition risk, physical risk, and reputational/legal risk related to climate change, are analyzed by Sustainability Committee, which is comprised of members from Commercial, Technology & Manufacturing, Research, HR, Procurement and Sustainability. Risks are regularly monitored once a year. Once risks have been identified, their impact and probability of occurrence are analyzed.
Risks that affect the entire company, such as emerging regulatory risks, are analyzed by the TCFD cross-functional team (“E (Environment) Working Group”), which is comprised of members from Finance, Technology & Manufacturing, Research, Procurement, Supply Chain Management, Corporate Strategy and Sustainability. The cross-functional team conducts climate-change scenario analyses by utilizing scenarios provided by institutions such as the IPCC. The physical risk geographical analysis described in the Strategy section was also performed by this team. The impacts of the transition to a low-carbon society, such as burden of carbon taxes are also analyzed.
In addition to identifying risks based on organizational and scenario analysis as described above, identifying risks on a business operation and business partner basis makes it possible to pick up risks that would otherwise be overlooked in the analysis. We conduct EHS assessments as risk analysis for business operations, and Third Party Lifecycle Management (TPLM) as risk analysis for business partners. As an internal expert of EHS, Sustainability regularly conducts EHS assessments of manufacturing sites and research facilities. The EHS assessment evaluates the environment, health and safety in general, and if risks are found, a plan for corrective and preventive action (CAPA) is requested. EHS assessments are also conducted for major suppliers as well as internal department. TPLM is the risk mitigation framework covering all stages of the business partner relationship, which includes planning, due diligence, contracting, ongoing maintenance and transition. A global approach was established by Legal, Ethics & Compliance and Procurement to proactively address and mitigate supplier risk for multiple domains such as: EHS, which verifies that the practical aspects of environmental protection and safety have been implemented in the work environment.
Processes for managing climate-related risks
Escalation procedures and other measures have been put in place for emergency risks, including but not limited to climate change risks. Regarding physical risks, typhoons, hurricanes, etc. may affect operations at business sites. The effects of past typhoons and hurricanes have been minor, and there have been no instances of any disruption to the product supply chain. In the manufacturing department, adequate product stock is maintained to ensure product supply is not affected. Regarding transition risks, although there is no need to dispose of any equipment due to climate change countermeasures, promoting energy efficiency improvements during future equipment upgrades may be a factor in increasing costs. The amount invested in climate change countermeasures is aggregated and published on the corporate website.
Reputational risk may arise if targets for reducing greenhouse gas emissions as a measure against climate change are not achieved. Astellas’ Sustainability team monitors the Company’s performance in reducing greenhouse gas emissions.
If a risk is detected during an EHS assessment, Astellas Sustainability presents proposals for improvement and requests the development of a corrective action plan. The Sustainability team follows up on the status of the corrective action plan.
Integration into the overall risk management
Climate-related risks are deliberated by the Sustainability Committee as part of sustainability impacts, risks, and opportunities. They will subsequently be shared with the Global Risk and Resilience Committee.
Continuous effective supply chain management is subject to ongoing monitoring and is overseen by the Global Risk & Resilience Committee. For more information, please visit the corporate website.
The reputational risk of not achieving ESG goals is also monitored by the Enterprise Risk Management team.
Metrics to assess climate-related risks and opportunities
We use GHG emissions (Scope 1, 2, 3), water resource productivity, waste generation amounts to measure the potential financial impact of climate-related risks and opportunities. GHG emissions are positioned as an important indicator because they are related to transition risks and failure to achieve GHG emission reduction targets will lead to increased carbon tax burdens and worsening reputational risks. On the other hand, reducing GHG emissions due to improvements in energy efficiency can be seen as an opportunity. Increasing water resource productivity is a countermeasure to increasing water stress due to climate change and is related to physical risks. Promoting waste management is also a measure against reputational risk.
Scope 1, 2, 3 emissions performance data
In FY2024, GHG emissions (Scope1+2) associated with Astellas’ business activities amounted to 108 kilotons globally. Scope 3 emissions were 1.28 million tons. Please refer to the corporate website for Environment, Sustainability (“ESG Data - Environment”).
ESG Data - Environment
Targets to manage climate-related risks
GHG emissions (Scope 1+2, Scope 3)
Astellas' GHG emission reduction action plan was approved by Science Based Targets Initiative (SBTi) in 2018 based on the 2°C targets of the Paris Agreement. The SBTi target, which must be re-calculated every five years, was updated one year ahead of schedule and the new reduction targets were set to achieve the Paris Agreement's 1.5°C target (Scope 1+2) and well-below 2°C target (Scope 3). The new target was approved by the SBTi as a science-based target. In February 2023, we announced a new policy aiming to reduce greenhouse gas emissions through our business to achieve Net Zero by 2050.
Water resource productivity, waste generated per unit of revenue
We calculate and publish our water resource productivity and waste generated per unit of revenue every year and publish an analysis of our progress towards our goals. For both indicators, trends are shown for the Base Year and the past three years. Please refer to the corporate website for Environment, Sustainability (“ESG Data - Environment").
ESG Data - Environment
Reference
[1] Intergovernmental Panel on Climate Change Sixth Assessment Report (IPCC AR6) Synthesis Report – Summary for Policymakers https://www.ipcc.ch/report/ar6/syr/downloads/report/IPCC_AR6_SYR_SPM
Astellas' fundamental approach to the environment and the health and safety of its employees is detailed in the Astellas EHS Policy. Furthermore, Astellas is committed to organizational and ongoing efforts to uphold this approach, as outlined in the Astellas EHS Guidelines. Additionally, Astellas has established medium-term targets for its key priorities within its EHS Action Plan and is actively working to achieve those targets.
Astellas Environment, Health & Safety Policy
The Astellas EHS Policy reflects the company’s overarching position on EHS issues. This policy is applicable to all domestic and international group companies and serves as the foundation for all our corporate activities.
Rules of conduct governing environment and safety activities
At Astellas, the environment is a metaphorical stakeholder in our business philosophy. To conscientiously fulfill our responsibilities to the environment, we implement specific measures and initiatives based on the Astellas Group Code of Conduct.
Astellas EHS Guidelines
The Astellas EHS Guidelines set forth unified standards that identify Astellas' aspirations in its EHS activities.
The guidelines qualitatively describe our aims, and concrete numerical targets, including their deadlines, will be stipulated through short- and medium-term action plans that will be updated every fiscal year. We ask outsourced manufacturers to cooperate in implementing the guidelines through assessments and other actions
Fundamental policies and action plans relating to the environment are important issue in sustainability in which Astellas is engaged. Responses to various environmental issues and the formulation of action plans are discussed by the Sustainability Committee. Committee members include employees that are heads of functional units* across departments. The details of committee discussions are reported to the Chief Strategy Officer (CStO), who oversees matters concerning sustainability. Climate change initiatives and more transparent disclosure are a regular agenda item for the Board of Directors as a strategic target, and the Committee reports to the Board of Directors on disclosures in line with TCFD recommendations, including assessments of climate change risks and opportunities, as one aspect of its sustainability activities.
The system works by having the management of risks related to the environment monitored in terms of sustainability by functional units and reports periodically made to the CStO, who issues instructions as necessary. The Executive Committee,† chaired by the President and Chief Executive Officer, or the Board of Directors discuss and determine how identified risks are to be addressed in accordance with the importance of the issue in question.
In response to matters concerning its environmental management systems, Astellas has acquired ISO 14001 certification covering all its commercial production sites in Japan and outside Japan as well as ISO 45001 certification for occupational health and safety at its European production sites.
*Organizational units that are constituted to execute business and that directly report to top management.
EHS Assessments
Astellas conducts a companywide EHS assessment every fiscal year, in line with the Astellas EHS Guidelines, in order to evaluate the progress of EHS activities throughout the Astellas Group. In fiscal 2024, EHS assessments were conducted at 12 facilities of production and research sites. The status of actions taken to resolve the issues identified in the assessments are confirmed through follow-up assessments in writing and the assessment in the following fiscal year. Societal demands and problem awareness at each site are shared through an exchange of opinions between the EHS Management Department and each site. In this manner, one objective of assessments is to ensure that Astellas’ aspirations are aligned in the same direction. In addition, Astellas conducts assessments of Contracted Manufacturing Organizations (CMOs) in the value chain based on the same guidelines. In fiscal 2024, Astellas conducted on-site assessments of three suppliers, and carried out risk assessments related to such matters as the operational status of wastewater treatment plants and waste storage facilities, employees' working environments and initiatives to prevent employees from being exposed to chemical substances. In cases where items were pointed out, Astellas indicated an improvement proposal, requested a plan for corrective measures to be drawn up, and is currently following up on progress of the improvements based on the corrective measures plan. Astellas continues risk management in the value chain through assessments to maintain an environment that ensures the stable supply of pharmaceuticals.
Product Assessment System
The total environmental load resulting from the production, sale, distribution and disposal of products is determined almost entirely at the research and development stages. With regard to the production and sales of pharmaceutical products, it is necessary to obtain government approval for each product. Since government approval also covers production methods and packaging specifications, when there are changes in either approved production methods or packaging, new approval must be obtained even if the changes are related to work safety or reducing the environmental impact. Therefore, these changes are very time-consuming and costly. Astellas has introduced a product assessment system as a tool that requires efforts to minimize the environmental load at every stage, particularly research and development, production, distribution, and disposal.
Under this assessment system, we examine issues such as the reduction of air pollutant emissions and the excessive use of packaging, safety measures at production sites, the prevention of exposure of employees to hazardous substances prior to the commencement of mass production, including development based on green chemistry, and response to law and regulation requirements.
When conducting product assessments, an assessment team conducts EHS assessments in stages for the development of products. The results determine whether the development of the product can move on to the next stage.
Specifically, the assessment must identify raw materials or processes that might have a negative impact on the environment and/or employee health and safety. The progress on remedial measures must be assessed, and action plans evaluated. Countermeasures being considered are evaluated in the subsequent stages of the assessment.
Education and Training
In order to promote further improvements in its EHS activities, the Company acknowledges the critical need to ensure that all employees have a correct understanding of their own roles and responsibilities.
To this end, we are working to develop employees professionally qualified in EHS matters and improve our skill base through a wide variety of training programs, including specialized education for employees engaged in roles requiring specialist knowledge and skills in areas such as environmental conservation or hazardous operations.
We also explain our policies and site rules to construction workers at our business sites, raw materials suppliers and waste transport and disposal contractors, and request cooperation with our EHS activities.
| Company name | Commercial manufacturing sites | Obtained ISO certification (Month-Year) |
| Astellas Pharma Inc. | Takahagi Technology Center | ISO14001 (July 1998) |
| Yaizu Technology Center | ISO14001 (October 2000) | |
| Toyama Technology Center | ISO14001 (March 2000) | |
| Takaoka Plant | ISO14001 (November 2000) | |
| Astellas Ireland Co., Ltd. | Dublin Plant | ISO14001 (March 1997) ISO45001 (September 2020) |
| Kerry Plant | ISO14001 (December 2003) ISO45001 (December 2018) ISO46001 (September 2024) ISO50001 (April 2012) |
|
| Astellas Pharma China, Inc. | Shenyang Plant | ISO14001 (October 2001) ISO45001 (April 2025) |
