Identifying critical ESG themes (materiality)

We believe ESG is the foundation underpinning the creation of new value. To strengthen our Group’s ESG initiatives, we have looked over the entire value chain and in light of changes in the business climate and social trends, we have identified critical ESG themes (materiality) from the perspective of “expanding business opportunities” and “strengthening our management platform.”

Even after identifying these themes, we regularly review them, referring to international standards such as SASB and GRI and to items assessed by ESG assessment organizations.

In fiscal 2022, we conducted a review of our materiality and set corresponding KPIs and numerical targets, which will enable us to accurately track our progress on these initiatives.

This will accelerate our rollout of sustainability activities as an integrated Group and help propel our businesses forward.

In order to continue creating new value and growing sustainably, we will also pursue other initiatives in response to social changes.

We believe the pharmaceutical distribution function that our Group provides as social infrastructure and our businesses and functions that contribute to local society are factors that will contribute to achieving the SDGs that the United Nations selected in 2015. In particular, the third of the SDGs, “health and welfare for all people,” can be seen in the desire reflected in our Group’s corporate philosophy of “continuing to contribute to rich and fulfilling lifestyles that are full of smiling faces.”