Identifying critical ESG themes (materiality)

The Group sees its purpose as continually creating new value that will contribute to solving social issues and reducing social costs. We have positioned critical ESG themes (material issues) as the foundation underpinning the creation of new value. We identify social issues that need to be addressed by looking across the entire value chain and taking into account changes in business-related circumstances and social trends. We then classify high-priority social issues under ESG themes, and identify material issues after considering both opportunities and risks.

Even after identifying these themes, we regularly review them, referring to international standards such as SASB and GRI, the evaluation criteria of ESG rating agencies, and stakeholders’ views, among other factors. The review process involves discussions in the Sustainability Committee, which includes the general managers of each business division and administrative department. Decisions are then made following reports and deliberations with the Board of Directors.

As we aim to be a health creation enterprise, the Suzuken Group extends its definition of customers to include not only clients such as medical institutions and pharmaceutical companies, but also local communities as a whole, including patients and their families. Based on our business strategies in each field, we regularly review our materiality issues and KPIs, as well as medium- to long-term numerical targets. The numerical targets we have established are indicators relating to CO2 emissions, percentage of female managers, percentage of male employees taking childcare leave, and compliance training participation rate.

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.”

The Group is working to strengthen sustainability through material issues and the business strategies outlined in its medium-term management plan.

In FY2023, we reviewed our material issues and identified ten key ESG issues linked to both the foundation for the business strategies of the medium-term management plan and six strategic pillars. We also set corresponding KPIs and numerical targets.

By managing progress from both financial and nonfinancial perspectives within the framework of the mediumterm management plan and material issues, we aim to accelerate the rollout of sustainability activities for the entire Group and make them a driving force for business activities. In order to continue creating new value and growing sustainably, we will also promote new initiatives in response to social changes.