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.

Materiality

In practicing its CSV management, the Kyowa Kirin Group identified priority issues that the Group needs to address (“materiality”) in light of their impacts on social sustainability as well as the Group's business. Materiality is also factored into our FY2021-2025 Mid-term Business Plan.

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.

Materiality and SDGs

The Kyowa Kirin Group endeavors to be conscientious about society’s expectations to the Group by constantly referring to the SDGs and other international frameworks for addressing social issues.

The materiality, which we identified by way of reflecting the needs of society, is factored into our mid-term business plan and cascaded down to specific actions in each organization's single-year plan. The progress of such business plan is closely monitored on a quarterly basis and reported to the Board of Directors.

Our way of making contribution to the SDGs will be subject to change, depending upon how our business evolves for the future. Nevertheless, we are aiming to play a greater role for the attainment of the SDGs through accelerating and expanding our business operations.

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Each SDG is tied to the most relevant materiality. However, in actual practice, other materiality are tackled at the same time in a cross-sectional and overlapping manner.

You can see this table by scrolling horizontally.

Materiality	Related SDGs	Initiatives
Growth opportunities ~Make as many people as possible smile~ Continuous innovation Patient advocacy Access to medicine		For People’s Health and Well-being Research Collaboration and Licensing Access to Medicines
Growth foundations ~Foster even greater trust in Kyowa Kirin~ Corporate governance Quality assurance and a stable supply of products Ensuring patient safety and appropriate use of medicines Supply chain management Legal compliance and ethical business practices Responsible marketing and advertising Responsible research and development Proper use of products Tax compliance Anti-bribery and corruption Privacy and information security Anti-counterfeiting Reinforce risk management Respecting human rights Transparency and disclosure; engagement		Organizational Governance Fair Operating Practices Consumer Issues Respect for Human Rights
Organizational culture and talent ~Create a unified team brimming with diversity~ Diversity, equity and inclusion Occupational health and safety Employee development and provide opportunities for employees to grow		Promotion of Diversity & Inclusion Promotion of Workplace Health and Safety Human Resource Development and Corporate Culture
Social foundations ~Ensure a thriving global environment for future generations~ Climate change mitigation and adaptation Biodiversity Reducing environmental impact Reducing pollution Waste and resource use Water resources management Philanthropic activities (advancement of medical)		Initiatives to Reduce CO₂ Emissions Initiatives to Preserve Water Resources Reduce Waste Emissions, Reduce Chemical Emissions, Biodiversity Preservation Involvement with Local Communities

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