CSV Materiality and SDGs

Kyowa Kirin Group's Management Philosophy and CSV Management

In its management philosophy, the Kyowa Kirin Group upholds the principle of striving to create new value by capitalizing on its strengths in life sciences and technologies with the aim of contributing to the health and well-being of people around the world. By "new value," we mean value that can be shared by society at large. In other words, we focus on "Creating Shared Value (CSV)." Our Group practices CSV management aimed at realizing improved corporate value through the creation of both social and economic value by addressing social issues.

Kirin Group's CSV Commitment

The Kirin Group, to which our Group belongs, positions CSV as the core of its management. Among the social issues that need to be addressed through its business, the Kirin Group selected the most critical issues of all and translated them into CSV commitments in reference to the Sustainable Development Goals (SDGs)*. The Kyowa Kirin Group adopts four of the Kirin Group's CSV commitments in the health field and the environment field—"Evolution in medical treatment," "Health-oriented business management," "Supporting self-care for healthy people and people with pre-disease" and "Reflecting environmental activities in our business strategies"—as its own important CSV management goals. By fulfilling these CSV commitments, we hope to contribute to the achievement of SDGs, especially the four SDGs related to our commitments.

Kirin Group's CSV Commitments Tackled by Kyowa Kirin Group
	SDGs Goal・Target	Kirin Group's CSV Commitments Tackled by Kyowa Kirin Group
Health and well-being	Achieve universal health coverage, including financial risk protection, access to quality essential health-care services and access to safe, effective, quality and affordable essential medicines and vaccines for all (Target:3.8)	Evolution in medical treatment 1.3 We will continuously discover innovative drugs and expand our commercialization activities globally. 1.4 By providing inexpensive, high quality biosimilars and "Authorized versions" of biologics, we will contribute to the further use of biomedicines and to solving a global issue, increases in healthcare spending. Health-oriented business management 1.5 As a company that delivers products and services contributing to consumer health, we will create an environment and opportunity for our employees to proactively improve their own health. We will address any mental health issues facing our employees and work to prevent lifestyle-related diseases. Also, as a member of the alcohol beverage industry, we will promote responsible drinking that encourages employees to be role models for society.
Health and well-being	Enhance scientific research, upgrade the technological capabilities of industrial sectors in all countries, in particular developing countries, including, by 2030, encouraging innovation and substantially increasing the number of research and development workers per 1million people and public and private research and development spending (Target:9.5)	Supporting self-care for healthy people and people with pre-disease 1.2 We will contribute to enhancing customers' quality of life throughout their lifetime, and strive to create revolutionary products, services, and new businesses.
The environment	Strengthen resilience and adaptive capacity to climate-related hazards and natural disasters in all countries（Target：13.1）	Reflecting environmental activities in our business strategies 3.1 We will work to further reduce GHG emissions through various initiatives including the introduction of renewable energy. 3.2 We will reduce water usage in production activities, and continuously preserve water sources.
The environment	By 2030, substantially increase water-use efficiency across all sectors and ensure sustainable withdrawals and supply of freshwater to address water scarcity and substantially reduce the number of people suffering from water scarcity (Target:6.4)

Kirin Holdings Our CSV Commitment

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Sustainable Development Goals (SDGs): A collection of 17 goals that international society should address over 15 years between 2016 and 2030 in order to realize sustainable global development. The SDGs were adopted by the United Nations summit in September 2015.

The United Nations Global Compact and the Kirin Group

The Kirin Group, to which our Group belongs, has announced participation in the United Nations Global Compact since September 2005. As a member of the Kirin Group, we observe the 10 principles of the United Nations Global Compact, which address human rights, labor, the environment, and anticorruption, and are advancing initiatives targeting the realization of sustainability for society and companies.

The GC and the Kirin Group

CSV Materiality and SDGs

In practicing its CSV management, the Kyowa Kirin Group identified issues that need to be tackled with top priority as CSV material issues (materiality) in view of their impacts on social sustainability and the Group's business, and in reference to ISO 26000 and other guidelines. CSV materiality, which is also consolidated into the Group's FY2016‒2020 Mid-term Business Plan, incorporates, as its core issues, four of the Kirin Group's CSV commitments regarding health and the environment.

Identification/Implementation Process of CSV Materiality

Step1 Listing of issues

We listed issues that need to be examined based on the Group's management philosophy and business visions as well as its existing CSR initiatives by following major international guidelines that help organizations fulfill their social responsibility, including ISO 26000, Global Reporting Initiative (GRI) guidelines, and the Sustainability Accounting Standards Board (SASB) sustainability accounting standards, and in consideration of the expectations of stakeholders.

Step2 Assessment of impact on social sustainability and business

The listed issues are prioritized from the perspectives of impact on social sustainability and impact on business, and a materiality matrix is formulated.

Step3 Identification of materiality (material issues)

From among issues plotted on the materiality matrix, those that need to be addressed with priority under the Mid-term Business Plan are identified as our CSV materiality.

Step4 Confirmation of validity and finalization

The validity of materiality is confirmed based on hearing from executives and discussions with subsidiaries and relevant divisions. When approved by the Group CSR Committee, the materiality is finalized.

Step5 Implementation and assessment

CSV materiality is incorporated into the business management plan for the relevant fiscal year formulated by each subsidiary and division for implementation. Updates on progress and stakeholders' requests are monitored to review the plan for necessary adjustments.

CSV Materiality and SDGs

CSV materiality were identified by referring to such guidelines as ISO 26000. In terms of their relevance to the SDGs, we have identified issues related to a total of 13 SDGs: four SDGs associated with our core issues derived from the Kirin Group's CSV commitments, and nine SDGs that must be tackled simultaneously as we conduct our business operations focused on the aforementioned four SDGs. We believe that conducting business with a focus on solving CSV materiality will contribute to the SDGs. Our way of helping to achieve the SDGs will vary depending on how our Group develops its businesses. Regardless, we aim to play a greater role in driving progress toward meeting the SDGs by accelerating and expanding our business operations.

You can see this table by scrolling horizontally.

CSV Materiality	SDGs	Initiatives
Organizational Governance Foster corporate culture in line with the Core Values Promote compliance Strengthen risk management Strengthen organizational governance system		Vision, Mission & Values Organizational Governance
Human Rights Respect human rights	Reduce inequality within and among countries	Respect for Human Rights
Labor Practices Ensure Employee Safety Promote employee health Promote diversity of employee and work style Develop employee competencies	Ensure healthy lives and promote well-being for all at all ages (Derived from Kirin Group's CSV Commitments)	Promotion of Workplace Health and Safety
	Achieve gender equality and empower all women and girls	Promotion of Diversity & Inclusion
	Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all	Human Resource Development and Corporate Culture
Environment Prevent global warming Preserve water resources	Ensure availability and sustainable management of water and sanitation for all (Derived from Kirin Group's CSV Commitments)	Initiatives to Preserve Water Resources Initiatives to Prevent Water Contamination
	Ensure access to affordable, reliable, sustainable and modern energy for all	Initiatives to Reduce CO₂ Emissions
	Take urgent action to combat climate change and its impacts (Derived from Kirin Group's CSV Commitments)	Initiatives to Reduce CO₂ Emissions
	Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss	Initiatives for Biodiversity Preservation
Fair Operating Practices Prevent bribery Ensure transparency in relationships with medical institutions Provide appropriate pharmaceutical information Ensure reliability in clinical research	Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels	Fair and Sincere Business Operations
Consumer Issues Create new products and services centered on leading-edge technology Provide high-quality and safe products and services Ensure stable supply of products and services	Ensure healthy lives and promote well-being for all at all ages (Derived from Kirin Group's CSV Commitments)	For People's Health and Well-being
	Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation (Derived from Kirin Group's CSV Commitments)	To Deliver Safety and Security
	Ensure sustainable consumption and production patterns	To Deliver Safety and Security
Community Involvement and Development Contribute to communities Contribute to advances in life sciences	Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all	Coexisting with Society and Communities
	Strengthen the means of implementation and revitalize the global partnership for sustainable development	Coexisting with Society and Communities

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Each SDG is tied to the most relevant CSV material issue. However, in actual practice, other CSV material issues are tackled at the same time in a cross-sectional and overlapping manner.
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We aim to contribute to all the SDGs including those not specified above by indirectly engaging with them through the Group's business operations.