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.

CSV Materiality

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 is also consolidated into our FY2016-2020 Mid-term Business Plan.

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

The Kyowa Kirin Group endeavors to remain aware of society’s expectations for us by referring to the SDGs and other international frameworks for addressing social issues. Among the SDGs related to our CSV materiality, we identify those related to “creating new products and services centered on leading-edge technology,” “promoting employee health,” “preventing global warming,” and “preserving water resources” as our core challenges. In addition to the core SDGs, we have also identified SDG-related issues that need to be addressed in the course of our business operations. 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.

-
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.
-
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.
-
We aim to contribute to all the SDGs including those not specified above by indirectly engaging with them through the Group's 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	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	Initiatives to Preserve Water Resources Initiatives to Prevent Water Contamination（in Japanese)
	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	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（in Japanese)
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
	Strengthen the means of implementation and revitalize the global partnership for sustainable development	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	For People's Health and Well-being Research Collaboration and Licensing
	Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation
	Strengthen the means of implementation and revitalize the global partnership for sustainable development
	Ensure sustainable consumption and production patterns	Cosumer Issues
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	Community Involvement and Development

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, “evolution in medical treatment (1.3, 1.4),” “health and productivity management (1.5),” “actions regarding climate change (3.1),” and “actions regarding water resources (3.2),” are upheld as the Kyowa Kirin Group’s important CSV management goals.

Kirin Group's CSV Commitments Tackled by Kyowa Kirin Group
CSV Materiality		CSV Purpose	Our Commitment
Create new products and services centered on leading-edge technology	Health and Well-being	Raise the number of healthy people, lower the number of sick people, and contribute to the people who are involved in the healthcare	Evolution in medical treatment 1.3 We will continuously develop innovative drugs with our cutting-edge biotechnology 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.
Promote employee health	Health and Well-being		Health and productivity 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.
Prevent global warming	The Environment	Realize a society based on 100% resource circulation by 2050	Actions regarding climate change 3.1 We will work to further reduce GHG emissions through various initiatives including the introduction of renewable energy.
Preserve water resources	The Environment		Actions regarding water resources 3.2 We will reduce water usage in production activities, and continuously preserve water sources.

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