Materiality

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 enhanced corporate value through the creation of both social and economic value.

Materiality

In practicing its CSV management, the Kyowa Kirin Group identifies materiality that we should prioritize in terms of their impact on social sustainability and the Group's business with reference to SASB, Access to Medicine Index, PSCI, etc.
The materiality is incorporated into our FY2021-2025 Mid-term Business Plan. The progress on the plan is being monitored quarterly and reported to the Board of Directors.

Identification/Implementation Process of Materiality

STEP 1 List issues: List issues to be discussed (competitor, sector and expert review, data analysis) / STEP 2 Assess impact on social sustainability and business: Prioritize listed issues from a social perspective (media surveys, trend surveys). Prioritize listed issues from a business perspective (analysis of internal documents, hearings with management, internal workshops). / STEP 3 Identify materiality (material issues): Formulate a materiality matrix / STEP 4 Confirm validity and finalize: Conduct dialogue with stakeholders. Discuss and confirm materiality in internal meetings attended by management. Embed materiality in the Medium Term Business Plan. Finalize at Board of Directors meeting.

Kyowa Kirin Group Materiality

The Kyowa Kirin Group has positioned materiality as a management challenge to realize our vision for 2030. Our materiality identified through the process described above is classified as "Topics for Value Creation" and "Topics for Value Enhancement, which corresponds to the strategic pillars to realize our vision for 2030: “Provide pharmaceutical products for unmet medical needs", "Address patient-centric healthcare needs", "Retain the trust of society", and "Management infrastructure to realize Life-changing value". The materiality of our group is related to the SDGs (Sustainable Development Goals), which have been proposed as an international framework for social issues. We are committed to making a greater contribution to the achievement of the SDGs by accelerating and expanding our business operations.

You can see this table by scrolling horizontally.

Topics for Value Creation
Strategic Pillars	Materiality	Initiatives
Provide pharmaceutical products for unmet medical needs	Creation of innovative drugs	Technology-driven drug discovery Pipeline
	Maximize product value
	Pipeline enrichment
Address patient-centric healthcare needs	Patient advocacy	Address Patient-centric Healthcare Needs(Annual Report 2022, P28-30) Access to medicine Improving Access to Medicines for Rare Diseases(Kyowa Kirin ESG Meeting, P13-17)
Address patient-centric healthcare needs	Access to medicine
Strengthen human resources and infrastructure to realize Life-changing value	DE&I	DE&I Talent Portfolio Corporate Culture Digital Transformation
	Talent portfolio
	Corporate culture
	Digital transformation

You can see this table by scrolling horizontally.

Topics for Value Enhancement
Strategic Pillars	Materiality	Initiatives
Retain the trust of society	Quality assurance and a stable supply of products Supply chain management Anti-counterfeiting	Quality Assurance Stable Supply CSR Procurement
Retain the trust of society	Reducing environmental impact Climate change mitigation and adaptation Biodiversity Reducing pollution Waste and resource use Water resources management	Reducing Environmental Impact
Strengthen human resources and infrastructure to realize Life-changing value (Management infrastructure)	Corporate governance	Corporate Governance
	Ethics and transparency Ensuring patient safety and appropriate use of medicines Respecting human rights Employee health and safety Responsible marketing and advertising Responsible research and development Tax compliance Anti-bribery and corruption Privacy and information security	Ethics and Transparency
	Reinforce risk management	Risk Management

Kirin Group's CSV Commitment

The Kirin Group, to which the Kyowa Kirin Group belongs, upholds the goal of becoming a global leader in CSV by creating value across its world of food to pharmaceuticals. To this end, the Kirin Group formulated the Kirin Group CSV Purpose, with reference to the SDGs, as guidelines for creating shared value with society and achieving sustainable growth. The Kirin Group positions the Kirin Group CSV Commitment as an action plan to fulfill these guidelines. The CSV Commitment regarding health and the environment, specifically, “Provide pharmaceuticals for Unmet Medical Needs,” “Sustainable use of biological resources,” “Sustainable use of water resources,” and “Overcoming climate change,”are upheld as the Kyowa Kirin Group’s important CSV management goals.

Kirin Holdings Our CSV Commitment

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