Chugai’s Material Issues

Creating Shared Value and Material Issues

Chugai has adopted “creating shared value” for Chugai and society as its basic management policy. We identified 26 material issues that should be given priority.

Based on our Chugai’s mission as well as impact of business on society, these issues were identified through a multifaceted analysis that incorporated objective views from outside experts and consequently grouped into 8 categories. We also set in-house performance indicators to measure our progress in addressing each issue. These material issues may be adjusted in response to changes in the external environment or the evolution of Chugai’s business activities, and we plan to update them periodically. Sustainability is part of our business strategy, and we consider it important to carry out our activities with an integrated and strategic view.

Chugai’s 26 Material Issues across Eight Categories. Group classification: Value Provided, Category: Sustainable Healthcare, Material Issue: Creation of innovative drugs and services, Provision of solutions for patients, Adverse event management, Quality assurance and stable supply of products, Fair marketing, Fair pricing. Group classification: Environment, Category: Global Environment, Material Issue: Climate change countermeasures (energy, etc.), Use of renewable/recycled resources (water, waste, etc.), Protection of biodiversity (environmental burden mitigation), Environmental management system. Group classification: Society, Category: Human Rights, Material Issue: Human rights, Safety of clinical trial subjects, Category: Human Resources, Material Issue: Employee job satisfaction, Development of employee potential, Diversity and inclusion (D&I), Employee health and safety, Category: Social Contribution, Material Issue: Social contribution activities, Access to healthcare. Group classification: Governance, Category: Governance, Material Issue: Corporate governance, Risk management, Disclosure and engagement, Personal information protection and information security, Category: Ethics and Compliance, Material Issue: Compliance, Code of conduct, Fair transactions, Category: Supply Chain Management, Material Issue: Supply chain management.

During the 2021 review, we confirmed there were no major changes in the direction being pursued in the “Issues for Chugai to resolve” (upper row) and “ESG issues to pursue as a corporate citizen” (lower row), and we organized all content as 26 Material Issues across eight categories in four group classifications.

Process to Formulate Material Issues

Chugai first formulated the Material Issues in 2019, following the processes outlined on the right. We identified a comprehensive list of expectations and requirements of society, based on future business environmental outlook and its analysis and by examining and referring to the SDGs and other external initiatives and guidelines. We also scrutinized items for which Chugai is not sufficiently meeting expectations. We conducted an objective analysis that incorporated outside views, and narrowed the list of issues to those for realizing Chugai’s Envisioned Future. These Material Issues are an integral part of business strategy and we will update them in the most appropriate manner from time to time in light of progress with our strategies and requirements from society.

STEP1 Analysis of medium- to long-term conditions and identification of risks and opportunities

  • Healthcare industry outlook, and forecasts and assumptions of domains and participating companies
  • Identification of future risks and opportunities, and our relevant strengths and weaknesses

STEP2 Discussion of management policies (Executive Committee)

  • Decisions on management policies and business plan formulation process
  • Discussion on Mission Statement to express both Chugai’s growth and the development of society

STEP3 Interviews of outside experts

STEP4 Gap analysis (Requests from outside stakeholders, comparison with other companies)

  • Advice of Chugai International Council (CIC) on mid- to long-term environmental changes and risks, strategic direction, and contributions Chugai can make
  • Advice from outside consultants on Chugai’s sustainability activities
  • Extraction of material issue categories based on expectations and requirements of society in accordance with the SDGs, GRI, SASB, etc.
  • Conducted gap analysis of current measures in terms of DJSI, MSCI and FTSE survey items

STEP5 Analysis of social issues we want to solve (value provided) and Material Issues

  • Drew up plan for solutions to social issues of stakeholders (value) and plan for material issues
  • Scope of outcome: “Move toward realization of advanced and sustainable patient-centric healthcare”

STEP6 Consultation with internal divisions

  • Review of plan for solutions to social issues (value) and plan for material issues, and consultations on wishes and views of division heads and supervising officers (Global Health Policy, Sustainability Human Resources Management)

STEP7 Specification of Material Issues (Outside directors, Executive Committee, and Board of Directors)

  • Based on the preceding steps, specified material issues on two axes: “stakeholder interest” and “Chugai’s impact on the economy, society and the environment”
  • Finalization after review by the Executive Committee, and approval by the Board of Directors
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