Sustainability

Environment and Energy

Basic Approach

To address deepening global environmental issues including the material issues of climate change and a recycling-oriented society, the H.U. Group is committed to taking action based on the Environmental Policy from the perspectives of reducing its environmental impact and improving operational efficiency.

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 and Energy 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.

Promotion System for Environment and Energy Management

Environmental Management Promotion System

Targets and Results

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 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

Image of Long-Term Environmental Goals

Sustainability Roadmap for Environment and Energy (Three-year Targets)

KPI Performance Forecast Target
Major Category Subcategory Item Unit 2018 2019 2020 Target Actual 2022
Climate change CO2 reduction Total of Scopes 1 & 2 emissions(sales intensity basis) (t-CO2 / 100 million yen) 21.0 19.9 17.4 22 14.9 22
(Reference) Achievement status for long-term targets (-20%) (%) 9.8 14.6 25.3 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)
67.6 71.4 73.6 74 75.7 76
CDP score Climate - Rank F C C B- A- A-

Applicable range
FY2018-2019: Japanese group companies subject to internal control evaluation
FY2020₋2022: Japanese and overseas group companies subject to internal control evaluation

Initiatives

Environmental Management System (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. 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

Over the past three years (FY2019–2021), 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.

Reducing Greenhouse Gas Emissions

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.

Specific strategies and initiatives by scope

<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.

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
Understanding Water Risks and Countermeasures

Depletion of water resources, deterioration of water quality and disasters such as flooding are becoming serious problems in various regions around the world.
The H.U. Group is working to identify water risks at its major production sites*. If a site with a high level of water risk is identified, the Group will take appropriate measures according to the details of the risk and societal conditions, such as by reducing water consumption.
As of 2022, there were no major production sites classified as "Extremely High" or "High" in the assessment based on AQUEDUCT's Overall Water Risk criteria, as published by the World Resources Institute (WRI).
As a result, there was no intake or use of water in high-risk areas.

*Major production sites: Production sites of Group companies in Japan and overseas subject to internal control.

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 addition to specialized education for supervisors responsible for operating the environmental management system and personnel responsible for implementing the environmental management system at business sites subject to ISO certification to acquire practical knowledge, in FY2021, we are also providing training for all Group companies on global / social situations and the H.U. Group's environmental policies and activities.

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. We received an A rank in “Buna no Mori Environmental Survey 2021.”

CDP (*1)

We responded to Climate section for the first time and received a C rank in 2019, followed by an A- rank in 2021. And we also have received an A- rank, the second highest, as for Supplier Engagement Ratings (SER) that is related to Supply chain items since 2020.

JAPAN CLIMATE INITIATIVE (*2)

In addition to supporting the Japanese government's stance and policy of creating a decarbonized society, in April 2020 we joined the Japan Climate Change Initiative (JCI) by agreeing to its declaration of “Joining the front line of the global push for decarbonization from Japan.” In October 2021 we joined the JCI Race To Zero Circle, in order to participate in the Race to Zero promoted by the secretariat of the United Nations Framework Convention on Climate Change (UNFCCC).

In addition to the above, we will continue to strengthen our efforts to address policies and regulations relating to the global environment, on issues such as carbon neutrality and decarbonization, through active participation in various initiatives including the TCFD Consortium and the United Nations Global Compact Environmental Management Subcommittee.

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 and Energy 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 beyond two degrees 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 beyond two degrees scenario
CO2 Emission … Net Zero by 2050
Targets for FY2030 : Scope1-2   25% reduction (Base: FY2020)
Scope312.5% reduction (Base: FY2020)
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.