Climate Change

Kyowa Kirin Group recognizes that the impacts of climate change present risks and opportunities for business continuity, and thus regards this as one of our Group’s most important management issues. In answer to the international community’s demands for a transition to a decarbonized society under the Paris Agreement among other appeals, we will be working to reduce CO2.

Policy and Commitment

The Kyowa Kirin Group's policy on climate change is set forth in the Kyowa Kirin Group Environmental Policy, which specifically calls for striving to save resources and energy, and reduce greenhouse gas emissions to prevent global warming.
In 2020, Kirin Group formulated the Kirin Group Environmental Vision 2050 as a new long-term strategy for strengthening social and corporate resilience. In pursuit of “a society that has overcome climate change” that constitutes the society of 2050 that we want to create together with respect to climate change described in the Kirin Group Environmental Vision 2050, Kirin Group has set a target of reducing greenhouse gas emissions for the entire value chain to net zero and is working with stakeholders to reduce CO2 emissions and take the lead in building a decarbonized society. Kirin Group as a whole has set the more specific medium- to long-term goals of reducing its CO2 emissions to 50% of their 2019 levels by 2030 (Scope 1 and 2), joining RE100, and achieving a 100% reliance on renewable energy for electric power by 2040, and it is developing various measures designed to accomplish these.
Kyowa Kirin Group has also set its own independent goal of reducing CO2 emissions by 55% from 2019 levels by 2030 to bring about a “society that has overcome climate change”. Kyowa Kirin Group will help realize this “society that has overcome climate change” by utilizing the Kirin Group’s global network to actively put in place climate change measures that take advantage of the characteristics of its business.

Furthermore, Kyowa Kirin Group has a new vision for 2030. To fulfill this new vision, we have established “retaining the trust of society” as one of the strategies in our 2021-2025 Medium-term Business Plan, with “helping to protect the global environment” being one of the measures to be pursued to that end. Our specific commitments pertaining to climate change include working to reduce CO2 emissions as soon as possible with a particular focus on energy-saving approaches inclusive of capital investment as well as expanded use of renewable energies, and to make an energy transition.

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Climate Change
A society that has overcome climate change.
Realize Net-Zero GHG emission from the entire value chain
  • Achieve RE100 at an early stage and source the company's energy from 100% renewable energy.
  • Realize Net-Zero carbon emission in the entire value chain.
Lead to build a decarbonized society
  • Build a business model that contributes to a decarbonized society with customers and other stakeholders.
  • Support research to mitigate climate change and expand responsible renewable energy to society.

Our Efforts to realize the Kirin Group Environmental Vision 2050

Targets and Results

Results by 2020

2020 Target*1

Since 2016, our Group had been pursuing its global target of cutting its CO2 emissions to less than 380,000 tons, 85% of their 1990 levels (i.e., achieving a 15% reduction in emissions vis-à-vis 1990) by 2020. Thanks to these efforts, CO2 emissions in 2020 were down 16% year on year to 278,000 tons, 62% of their FY1990 levels (representing a 38% decline), and the target was achieved.

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2020 Target*1
Target CO2 Emissions (SCOPE1,2):
15% Reduction from 1990 Level
Target Year 2020
Base Year 1990
Results in the Base Year 278,107 t-CO2
Boundary Global
Achievement Status Achieved by a 38% reduction
  • *1:
    Combined target was set for Kyowa Kirin Group and Kyowa Hakko Bio Group until 2020.
1990: 447 thousand t-CO2(Kyowa Hakko Bio Group: 409 thousand t-CO2、Kyowa Kirin Group: 39 thousand t-CO2)/2016: 364 thousand t-CO2(Kyowa Hakko Bio Group: 297 thousand t-CO2、Kyowa Kirin Group: 67 thousand t-CO2) CO2 emissions per unit of net sales: 104.6 100 Millions of Yen/2017: 365 thousand t-CO2(Kyowa Hakko Bio Group: 302 thousand t-CO2、Kyowa Kirin Group: 64 thousand t-CO2) CO2 emissions per unit of net sales: 103.4 100 Millions of Yen/2018: 358 thousand t-CO2(Kyowa Hakko Bio Group: 305 thousand t-CO2、Kyowa Kirin Group: 53 thousand t-CO2) CO2 emissions per unit of net sales: 103.4 100 Millions of Yen/2019: 330 thousand t-CO2(Kyowa Hakko Bio Group: 278 thousand t-CO2、Kyowa Kirin Group: 52 thousand t-CO2) CO2 emissions per unit of net sales: 17.2 100 Millions of Yen/2020: 278 thousand t-CO2(Kyowa Hakko Bio Group: 237 thousand t-CO2、Kyowa Kirin Group: 41 thousand t-CO2) CO2 emissions per unit of net sales: 12.9 100 Millions of Yen/2020 Target: 380 thousand t-CO2/2019、2020 Kyowa Kirin Group (2019: 51,931t-CO2、CO2 emissions per unit of net sales: 17.2 100 Millions of Yen/2020: 41,074t-CO2、CO2 emissions per unit of net sales: 12.9 100 Millions of Yen/2030 Target: 23,369t-CO2)
Change in CO2 emissions
  1. *2:
    This data covers the plants and research laboratories of Kyowa Kirin Group and Kyowa Hakko Bio Group. From 2019 onwards, only Kyowa Kirin Group is covered due to the transfer of shares of Kyowa Hakko Bio Group. The dotted bar graph (actual results) shows the data for Kyowa Hakko Bio Group. Data for Kyowa Iryo Kaihatsu Co., Ltd., and Kyowa Kirin, Inc., has been disclosed since 2019.
  2. *3:
    The 2020 target is the combined target for Kyowa Kirin Group and Kyowa Hakko Bio Group, while the 2030 target shown in the expanded area is that for Kyowa Kirin Group alone.
  3. *4:
    IFRS consolidated sales are used to calculate the intensity.

Annual Targets (Fiscal 2020 Performances)

In 2020, we strove to cut CO2 emissions to achieve our 2020 and 2030 targets*1 and to reduce unit energy consumption by 1% or more from the previous year. As noted above, we successfully reached our 2020 targets.
By introducing renewable energy at our mainstay Takasaki Plant, we significantly reduced CO2 emissions in 2020 compared to the previous year. Further details on this will be provided below in “Major Initiatives: Promotion of Renewable Energy Introduction ".
We also achieved a year-on-year reduction of 2.9% in unit energy consumption by setting unit energy consumption reduction targets for individual workplaces, implementing various energy-saving measures, and optimizing the operation of air-conditioning equipment.
In addition, we are a Specified Business Operator under the Energy Saving Act, and we are thus obliged to try for an average reduction in unit energy consumption of 1% per year, and we have maintained an S-class evaluation (target achieved) under the Energy Saving Act’s business operator classification system (SABC evaluation system) for three years running.

Various data on CO2 emissions are posted in the ESG data.

  1. *1:
    Combined target was set for Kyowa Kirin Group and Kyowa Hakko Bio Group until 2020.

Working toward a "society that has overcome climate change" (2021-2050)

2030 Target

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Target CO2 Emissions (SCOPE1,2):
55% Reduction from 2019 Level
Target Year 2030
Base Year 2019
Results in the Base Year 51,931 t-CO2
Boundary Global

By 2030

Our Group has collaborated with Kirin Holdings to set and pursue a target of reducing CO2 emissions by 20% from their FY2015 levels to 289,000 tons or lower by FY2030 based on Science Based Targets (SBT). This target was revised in 2021 in response to growing social demand for addressing climate change in the face of increasingly serious climate change. A new target just for our Group was set based on the SBT 1.5°C target: a 55% reduction in emissions from 2019 levels.
To achieve this target, we will be undertaking continuous energy-saving activities inclusive of capital investment until 2030, while accelerating expanded introduction of renewable energy by leveraging the distinctive feature of our business that most of the energy we use is electricity, to achieve a reduction in CO2 emissions. Specifically, our Group will implement the following measures.

  • We will be seeking to make equipment improvements by introducing energy-saving air-conditioning equipment, putting the latest energy-saving equipment in new buildings and installing spot air conditioning as well as by undertaking necessary capital investment, in addition to “software” improvements in refrigeration machine control and air-conditioning management.
  • We also intend to gradually switch over to renewable energy sources for the electricity used at major sites in Japan by 2025. By 2030 we plan to have introduced and expanded renewable energy use to all our Group’s sites, including overseas business locations and domestic branch offices.
  • We are considering introducing solar power generation equipment using the on-site PPA model at plants and research laboratories in Japan and installing solar power generation equipment in overseas plant.
Trends in CO2 emissions reduction(all production and research sites in Japan and overseas)(2019)Electricity 66% City gas 26% Kerosene 6% Steam 1% Natural gas 1% Other 1% (2020)75% of purchased electricity at the Takasaki Plant has been replaced with renewable energy Reduction of approximately 21% (Forecast for 2025)Expand introduction of renewable energy to major business sites Reduction of approximately 51%, By 2030 Introduction and expansion of renewable energy to all business sites, including overseas sites and domestic sales branches / offices Introduction of solar power generation at production and research sites using an on-site PPA* model *PPA (Power Purchase Agreement)

By 2050

While continuing the above-mentioned measures through 2030, we will be pursuing an energy transition away from fossil fuels with the aim of net zero CO2 emissions for the entire value chain.

CO2 emission reduction forecast scenario Save energy×Expand renewable energy×Convert energy sources 2019~2020 Introduce renewable energy at Takasaki Plant (Aqua Premium) 2020~2030 Introduce / expand use of renewable energy, promote energy efficiency CO2 emissions 2030~2050 Achieve net-zero emissions across the supply chain

Major Initiatives

Promotion of Renewable Energy Introduction

In an effort to promote the wider use of renewable energy, Kyowa Kirin has been installing solar power generation facilities since 2011. As of 2021, such facilities are in operation at the Tokyo Research Park, Fuji Site, and the Ube and Takasaki plants, generating a total of 131,000 kWh of solar power, equivalent to 65.6 tons* of CO2 emissions.
We are also planning to introduce solar power generation equipment using the on-site PPA model at plants in Japan, and to synergistically accelerate CO2 emission reductions by implementing these measures. The Takasaki Plant introduced "Aqua Premium" in 2020, thereby switching to hydroelectric power that does not emit CO2 for 75% of its electricity use. With this introduction of "Aqua Premium," approximately 23,400,000 kWh of the Kyowa Kirin Group's annual power consumption of about 72,400,000 kWh has been switched over to hydropower sources. Our Group's annual CO2 emissions have thus been cut by approximately 21% (approximately 11,000 tons). Kyowa Kirin Group is the first company in the pharmaceutical manufacturing industry to introduce "Aqua Premium."

We plan to push forcefully ahead in introducing and expanding renewable energy use to achieve our 2030 target. By 2030, we intend to switch the purchased power at all sites of our Group, including overseas sites and branch offices in Japan, to 100% renewable energy.

2016:136 thousand kWh/2017:140 thousand kWh/2018:132 thousand kWh/2019:135 thousand kWh/2020:131 thousand kWh
Changes in solar power generation
  1. *
    The figure is calculated by converting the amount of solar power to indirect CO2 emissions of purchased electricity.

Replacing Company Vehicles with Hybrid Cars

Kyowa Kirin Group has been replacing its commercial vehicles from conventional low-emission certified vehicles to hybrid vehicles in phases since 2009. As of the end of fiscal 2019, the hybrid car introduction rate of company-owned vehicles has reached 100%, and all commercial vehicles have been switched to hybrid vehicles, allowing us to save on fuel consumption for sales activities, while also achieving reduced CO2 emissions. We will consider the relationship between information provision activities and the environmental impact, and proceed with efforts toward the realization of a low-carbon corporate group.

2016 Hybrid car introduction rate:87.1%、CO2 emissions:2,881tons/2017 Hybrid car introduction rate:87.3%、CO2 emissions:2,588tons/2018 Hybrid car introduction rate:92.0%、CO2 emissions:2,615tons/2019 Hybrid car introduction rate:100%、CO2 emissions:2,355tons/2020 Hybrid car introduction rate:100%、CO2 emissions:1,564tons
CO2 emitted from company sales cars and proportion of hybrid cars

Advancing Green Office Plan

At Kyowa Kirin Group, as part of its ISO 14001-based environmental activities across all back office divisions, the head office, plants, research laboratories, and sales offices promote the Green Office Plan (GOP) in cooperation with the labor union, administrative and procurement divisions, and others. Our green purchasing ratio in fiscal 2020 was 89%. We have introduced a mechanism for actively purchasing eco-friendly products by changing our purchasing system. Due in part to the impact of COVID-19, we undertook a review in fiscal 2020 of our work styles and actively encouraged telework. These steps proved quite effective, with the amount of electricity used per employee falling by 0.5% from the previous year and the copy paper use per employee declining by 15% from the average figure for the past three years. Going forward, we will promote work style reform and continue to implement suitable measures.

Targets under Green Office Plan

Reduce per-unit electricity consumption by 1% a year
Secure green purchasing rate of at least 90%
Reduce per-unit copier paper consumption by 1% a year (vis-à-vis average consumption in past three years)

Response to, and Support for, Public Regulations

We supports laws, regulations and policies pertaining to climate change and reduced energy consumption at all our business locations inside and outside Japan (e.g., the Act on Promotion of Global Warming Countermeasures (“Global Warming Act”) and the Act on the Rationalization etc. of Energy Use (“Energy Saving Act”) in Japan) and takes appropriate measures to comply with them.
In addition, we are a Specified Business Operator under the Energy Saving Act, and we are thus obliged to try for an average reduction in unit energy consumption of 1% per year. We have achieved reductions in unit energy consumption by setting unit energy consumption reduction targets for individual sites and implementing various energy-saving measures. We have maintained an S-class evaluation (target achieved) under the Energy Saving Act’s business operator classification system (SABC evaluation system) for three years running.

Connections to Industry Groups and Initiatives

Industry Groups

We are a member of the Federation of Pharmaceutical Manufacturers' Associations of Japan (FPMAJ) and its affiliate the Japan Pharmaceutical Manufacturers Association (JPMA). Both the FPMAJ and the JPMA are taking part in the "Carbon Neutrality Action Plan” (formerly “Commitment to a Low Carbon Society”) developed by the Japan Business Federation. We support the Carbon Neutrality Action Plan and we have been participating in Carbon Neutrality Action Plan (Phase I)* with a target year of 2020 and Carbon Neutrality Action Plan (Phase II)* with a target year of 2030.
We are also participating as a member in the activities of the Carbon Neutrality Action Plan Working Group (formerly the Low Carbon Society Action Plan Working Group) established by the FPMAJ. We are indirectly lobbying the government by reflecting our views in industry groups’ policy recommendations on climate change issues such as formulating CO2 emission reduction targets.
To ensure consistency with the stances of industry groups on climate change strategies, we are participating and gathering information in seminars on climate change hosted by the Ministry of Economy, Trade and Industry, the Ministry of the Environment, the Ministry of Health, Labour and Welfare and other government organizations as well as in seminars sponsored by industry groups. We are also taking part as members in a variety of relevant groups to discuss climate change issues and share the content of these discussions internally. We check that this content is in line with our own positions and approaches, and any discrepancies are taken up with the in-house organizations responsible for environmental management and then coordinated via the Group CSR Committee chaired by the Representative Director and Executive Vice President. Through this process, we are aligning our climate change strategies with industry group activities.

  • *
    The targets set by the Carbon Neutrality Action Plan are as follows.
    Phase I: Reduce CO2 emissions by 23% from FY2005 levels no later than FY2020.
    Phase II: Reduce CO2 emissions by 25% from FY2013 levels no later than FY2030.

Initiatives

Kirin Holdings joined RE100* in 2020 and thereby committed to switching to 100% renewable energy use by 2040. Our Group's climate change measures are consistent with those of Kirin Holdings, and our Group will also be working to introduce renewable energy in order to fulfill this commitment. Kirin Holdings has obtained certification of its SBT 1.5°C target, and our Group’s 2030 target has been set to conform to this target.

  • *
    An international environmental initiative comprising companies aiming to derive 100% of their electric power from renewable energy sources.