Sustainability

Environment

Basic Approach

Based on the "Environmental Policy," the H.U. Group initiates to reduce the environmental burden and improve operational efficiency in response to the deepening global environmental problems such as climate change.

Environmental Policy
Established on July 5th 2019
Revised on July 1st 2020

The H.U. Group recognizes the connection between diverse business characteristics and the environment. We engage in environmental preservation, contributing to a sustainable society.

  1. We strive for environmentally friendly business activities, providing services and products to society that are friendly to both people and the environment.
  2. We engage in energy and resource conservation, the proper control of chemicals, reduced waste, recycling, and protection of water resources, striving to prevent environmental pollution.
  3. We comply with laws, regulations, and agreements on the environment. We also strive for ongoing improvements in our environmental management systems and environmental performance.
  4. We communicate our environmental policies and other environmental initiatives to employees and all others involved in our business activities. We also disclose these policies and initiatives externally.

Management

We have established an Environment Subcommittee managed by an Executive Officer/division head of General Affairs from H.U. Group Holdings. Further, we have established the Environmental Management System (EMS), and formulate and execute plans for environmental activities in climate change, waste, and other areas. This subcommittee regularly monitors the progress of these activity plans and their results, and strives to act and take corrective action going forward. We have acquired ISO14001(*) certification at our major bases in clinical laboratory testing and in vitro diagnostics businesses, grasping the environmental impact of our business locations and activities and working to reduce environmental burden.

External goal setting and participation in initiatives must be deliberated by the H.U. Group Sustainability Committee, which is chaired by the Director, President and Group CEO. Depending on the cases, it will be reported to the Board of Directors.

(*)ISO14001:
A standard for environmental management systems (EMS) established by the ISO (International Organization for Standardization). Certification is given to organizations that have built a system conscious of the environment and reducing environmental burden on an ongoing basis.

Environmental Management Promotion System (as of October 2020)

Environmental Management Promotion System

Targets

The H.U. Group has set "H.U. Group Long-Term Environmental Goals" for reducing CO2 emissions and improving its plastic recycling rate looking ahead to 2030 based on the two-degree scenario advanced by initiatives such as the Paris Agreement, as well as on the Osaka Blue Ocean Vision. Given these, we formulated a company-wide Sustainability Roadmap in 2020 with targets for the three years immediately ahead and disclosed this externally.

Long-Term Environmental Goals

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Environmental Sustainability Roadmap (Three-year Targets)

KPI Performance*1 Forecast 2019 Targets
Major Category Subcategory Item Unit 2016 2017 2018 Target Actual 2020 2021 2022
Climate change CO2 reduction Total of Scopes 1 & 2 emissions
(sales intensity basis)
(t-CO2 100 million yen) 25.0 23.3 21.0 21*2 19.9 20 22 22
(Reference) Achievement status for long-term targets (-20%) (%) - 0 9.8 11 14.6 16 7 7
Marine plastic waste
(Formation of a recycling-oriented society)
Circular, effective use of resources Total recycling rate of waste plastic (%)
(Recycled amount / total amount)
- 66.0 67.6 70 71.4 72 74 76
CDP score Climate - Rank F F F D C C B- B

*1:
Aggregated the results of the three major companies in FY 2016, six domestic companies subject to internal control from 2017.
*2:
Final target value (sales intensity basis) with target value set to 1% reduction vs. FY2018 results (21)

Initiatives

EMS

The H.U. Group promotes EMS company-wide under the H.U. Group Environmental Policy. SRL and Fujirebio have established our systems that meet ISO14001 requirements.

Internal Audits

In order to ensure objectivity and independence, General Affairs division at H.U. Group Holdings plays a central role in conducting internal audits by gathering auditors from Group companies.

Status of External Audit Implementation

TüV SüD Japan. In 2020, H.U. Group Holdings gained ISO14001 certification by the third party certification, TüV SüD Japan.

the scope of the EMS ISO 14001:2015
Sites Scope of applicaion
H.U. Group Holdings, Inc. Headquarters Management of operations related to the scope of application of the group companies shown below
SRL, Inc. Hachioji Laboratory Clinical Testings, Research & Development for Clinical Testing Design,
Fujirebio, Inc. Hachioji Facility, Hachioji2ndFacility, Hachioji 3rd Facility Development, Production of Diagnostic Equipment and Reagent
SRL, Inc. Hamura Laboratory Clinical and Pathological Testing
SRL, Inc. Sagamihara Laboratory Clinical Testing for Clinical Trial
Fujirebio, Inc. Sagamihara Facility Production of Diagnostic Reagent
Fujirebio Inc. Tokachi Obihiro Facility Production of Raw Material and Bulk Reagent forImmunoassay Device
Fujirebio Inc. Ube Facility Production of Diagnostic Reagent and Raw Material for Immunoassay Device
Fujirebio Inc. Distribution Center Distribution of Diagnostic Equipment and Reagent

Applicable to employees, contract employees, and business partners such as contractors

Status of Environmental Compliance

At present, the H.U. Group has not experienced any serious violations of laws and regulations, nor incidents having a significant impact on the environment.

Please refer to this link for specific data about the above, including the number of audits conducted.

Reducing Greenhouse Gas Emissions

The H.U. Group regards climate change as an important issue, has set Long-Term Environmental Goals, and aims to reduce sales intensity by 20% by 2030 compared to 2017. CO2 is the Group's primary target among all the greenhouse gases, and we are continuously promoting the following energy conservation measures to reduce emissions.

  • Converting to LED lighting in high-emission bases, especially at laboratories
  • Efficiency/automation by reviewing manufacturing processes
  • Optimizing office air conditioning temperature, limiting power use from lighting/office automation equipment
  • Promoting work style reform (reducing meeting times, promoting on-time work departure)
  • Reducing company-owned vehicles through joint logistics
  • Consolidating laboratories, reducing office space in business locations, etc.
Image of Reducing Greenhouse Gas Emissions
Adaptation to climate change

We are building a business continuity structure based on our social mission not to stop medical testing operations, assuming an event in which a physical risk such as a natural disaster impacts management resources and causes business interruptions.

  • Relocation and consolidation of business bases in consideration of water disasters
  • Securing generators assuming a certain infrastructure outage
  • Securing water and sewage storage facilities
Plastic Countermeasures for a Recycling-Oriented Society

Based on the goal of 100% effective use of plastics by 2035 as seen in the Japanese government's Resource Circulation Strategy for Plastics and the Osaka Blue Ocean Vision, which was shared at the G20 Osaka Summit and aims to eliminate new pollution caused by marine plastic waste by 2050, the H.U. Group is earnestly strengthening its plastic countermeasures as of FY2020 for a recycling-oriented society.

Promotion of Waste Plastic Recycling

We are targeting SRL, which comprises 80% of our total amount of plastic waste, and especially working to tackle waste issues at the Hachioji Laboratory, which accounts for more than half of that. Specifically, we are selecting new vendors for our high recycling/coverage rates and more thoroughly sorting waste within bases. We will expand these activities to resolve issues at the Group's important bases.

Image of Waste Plastic Recycling
Review of Product Packaging Materials

For products using plastic in our in vitro diagnostics business, we are working to suspend use of plastic materials, reduce the weight volume of plastic parts, and replace conventional plastics with biomass plastics.

Image of Product Packaging Materials
Implementation of Environmental Education

All employees on joining the company are provided general education to inform them about the Group's environmental activities and how its different businesses affect the environment. In FY2019, we have implemented specialized education for acquiring practical knowledge. This education was provided to environmental management system promotion managers and promotion staff set up in each department for business locations under the scope of ISO certification.

Image of Environmental Education
Environmental Communication

The H.U. Group strives for two-way communication with stakeholders through active disclosure of information on environmental management and dialogue with stakeholders.

Sompo Japan Green Open Fund (nicknamed Buna no Mori)

We have been selected since 2018.

CDP (*1)

We responded to Climate section in 2019 for the 1st time, and Received a C rank. And we also received a A- rank, the second highest, as for Supplier Engagement Ratings (SER) that is related to Supply chain items in 2020.

JAPAN CLIMATE INITIATIVE (*2)

We have been participated since April 2020.

JAPAN CLIMATE INITIATIVE logo
Information Disclosure in line with TCFD Recommendations

We have been disclosing our status of response to TCFD (*3) recommendations and risk and opportunity since October 2020.

Response to items for disclosure recommended by the TCFD
TCFD recommended disclosureitems Response status
Governance The organization’s governance around climate-related risks and opportunities • The H.U. Group's Sustainability Committee, with the CEO as its chair,deliberates on climate change issues and implements CO2 reduction targets and manages progress
• The Executive Officer in charge of General Affairs and division head of General Affairs serves as chair of the Environment Subcommittee.
Based on this subcommittee's decisions, the division promotes measures against climate change
Strategy The actual and potential impacts of climate-related risks and opportunities on the organization’s businesses, strategy, and financial planning • Through the H.U. Group Sustainability Committee, risks and opportunities(given the two-degree scenario) are identified and impacts are anticipated
Risk Management The processes used by the organization to identify, assess, and manage climate-related risks • At the H.U. Group Risk Management Committee selected natural disaster risk including impact of climate change as one of the Significant risks
Indicators and Targets The metrics and targets used to assess and manage relevant climate-related risks and opportunities • Have set long-term targets based on the two-degree scenario
(reduce CO2 emissions by 20% by 2030 based FY2017 levels)
Response to risks / opportunities

Risks and opportunities are qualitatively assessed using the scenario analysis to capture the impact of highly uncertain climate change.
In considering our risk and opportunity responses, we have deepened our understanding of the world, where transition risks increase (1.5℃ and 2℃) and where physical risks increase (4℃), and sorted out events that could take place under each scenario. To prepare for these potential events, we have set timelines of “short term: 1 year”, “medium term: 5 years”, and “long term: 10 years”, organized the potential business impact and our response measures, and analyzed business risks and opportunities.

Response to risks / opportunities
(*1)CDP:
An international NGO working in environmental areas, including climate change, preceded by the Carbon Disclosure Project established in 2000. This organization focuses on collection and disclosure of climate change-related information that is of interest to institutional investors.
(*2)JCI:
A network organization to strengthen information dissemination and exchange of opinions among companies, local governments, NGOs, and other actors that are actively engaged in taking climate action in Japan (as of September 15, 2020, a total of 499 organizations participate in the Initiative)
(*3)TCFD:
By request of the G20, the Financial Stability Board established the Task Force on Climate-related Financial Disclosures (TCFD), chaired by Michael Bloomberg, to consider climate-related information and how financial institutions should respond.