Environment and Energy

In light of the actual results of the three years from FY2020 until FY2022, the H.U. Group established a new roadmap (two-year targets) in FY2023.

＜Three-Year Targets and Results（FY2020～2022）＞

Base year when setting the three-year targets

In May 2023, we changed the base year to 2021 and revised our targets upward.

＜Two-Year Targets（FY2023～2024）＞

In order to ensure objectivity and independence, Environment and Energy Subcommittee at H.U. Group Holdings plays a central role in conducting internal audits by internal environmental auditors who meet qualification requirements within the Group companies.

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

Over the past five years (FY2018-2022), the H.U. Group has not experienced any violations of environmental laws and regulations (including regulations on water quality and quantity) or serious incidents affecting the environment.

Please refer to this link for specific data about the above, including the number of audits conducted and violations of environmental laws or regulations.

The H.U. Group regards climate change as an important issue, has set Long-Term Environmental Goals, and aims to achieve "net zero CO₂ emissions by 2050." 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.

＜Scope1＞
Through a business alliance with MEDIPAL Holdings Corporation, we are working to reduce exhaust gas and carbon dioxide emissions by combining specimen collection and pharmaceutical logistics networks, optimizing logistics functions, and reducing the number of vehicles on the road. At the same time, we are also considering switching to non-fossil fuel vehicles such as EVs and FCVs.

＜Scope２＞
We are engaged in energy-saving activities such as introduction of high-efficiency equipment, conversion to LED lighting, restructuring of laboratory systems, and consolidation and abolition of business sites, as well as the procurement of renewable energy.

＜Scope3＞
For products in the clinical laboratory reagent business, we are working to discontinue the use of plastic packaging materials and reduce weight.

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

At the G20 Osaka Summit held in June 2019, the leaders of each country shared the "Osaka Blue Ocean Vision" to reduce additional pollution from marine plastic litter to zero by 2050. For this reason, we are targeting the SRL, Inc., which comprises 80% of our total amount of plastic waste, and especially working to tackle waste issues at the Central 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.

- 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.

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

We responded CDP’s climate change questionnaire for the first time in 2019 and are rated A- for the third consecutive year since 2021. We also have received an A- rank, the second highest, for Supplier Engagement Ratings (SER) in 2023.
In addition, we responded to the water security questionnaire in 2023 for the first time and received a D rating.

As a member of the Federation of Pharmaceutical Manufacturers' Association of Japan, which is involved in the Keidanren Carbon Neutrality Action Plan, we will formulate and promote plans to mitigate the impact of climate change and proactively lobby the government to introduce relevant public policies and regulations.
In March 2023, prior to that year's G7 Summit in Hiroshima, we expressed our support for the JCI's Overcoming Two Crises with Renewable Energy and Carbon Pricing, a message requesting that the Government of Japan further enhance its initiatives, and our intent to take the lead in this.

Outline of the JCI message that we support

• Ensure the vast majority of electricity supplied is from renewable energy sources by 2035
• Early introduction of effective carbon pricing
• Stand at the forefront of the global challenge to achieve the 1.5℃ goal

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

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.

• 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.
• 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)
• 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.