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 16 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. 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.
- 01 Creation of innovative drugs and services, powered by unique strength in science and technology
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To realize advanced and sustainable healthcare, continuously create innovative, high-quality drugs and services that address unmet medical needs. To achieve this, we will create original technologies mainly for drug discovery, and cultivate understanding of science and biology for disease.
Based on our value of patient-centricity, we aim to provide drugs and services that are centered on patients and reduce burdens on people around them such as caregivers and healthcare professionals and improve their QOL. To this end, we will actively adopt advanced technologies such as digital technology, and continuously work together with people around world on sophistication and acceleration of business processes for value creation, collaborate with academia, open innovation, advanced use of intellectual property, etc. - 02 Provision of individualized and optimal solutions to patients
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We will generate evidence that enhances value for patients, continuously working to provide solutions that meet the diverse needs of individual patients and medical practices to strengthen and advance them.
Contribute to the provision of healthcare that is optimal for each patient and truly enhances value together with stakeholders involved in healthcare such as patients, their families, and healthcare professionals. - 03 Access to healthcare
- We will contribute to regional healthcare coordination and enhancement of healthcare so that highly specialized medical care, mainly comprising innovative drugs and services that address unmet medical needs, can be delivered to people around the world who need it. We will realize continuous and sustainable creation of drugs and services by obtaining appropriate recognition for the provision of innovative drugs and services that have true value while taking measures such as cost reduction by proactive use of new technologies and promotion of treatment design with less burden for patients.
- 04 Quality assurance and stable supply of products and services
- To provide reliable products and services that customers can use with confidence, we will ensure consistent and stable products and services, as well as information quality, throughout the product life cycle from the clinical trial stage. We will also make efforts to prevent counterfeiting and poor quality of drugs, such as enhancing traceability in the supply chain. In addition, in accordance with the basic concept of quality, we will build a supply chain that is robust even in emergencies by working together with stakeholders in the value chain.
- 05 Safety of patients and clinical trial participants
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To ensure thorough management of safety throughout the product lifecycle and minimize potential negative impact such as deteriorating health to patients and clinical trial subjects. In addition to carrying out appropriate pharmacovigilance activities in cooperation with regulatory authorities, we ensure the provision of information to healthcare professionals to promote the proper use of drugs and services.
Particularly in ensuring the safety of products and conducting clinical studies on development products, risks and efficacy shall be appropriately evaluated from the viewpoints of high ethics and science. - 06 Co-creation of a healthcare ecosystem with society and community
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In order to support the foundation for sustainable patient-centric and advanced healthcare, and to expand healthy society, we collaborate with various entities such as society/community, patient group, government, administration, to create collective impact against social issues related to healthcare that cannot be solved by our company alone.
Through this, we will contribute to the maintenance, expansion and development of a robust foundation and ecosystem that supports medicine and healthcare as a leader in the industry. - 07 Human capital development
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We organize a system for career development and talent management so that each employee can fully demonstrate the abilities, attract human resources from around the world and support self-directed learning and growth. In particular, we will focus on acquiring and developing highly specialized talent, such as digital and science talent, who will be key to strategy execution and be able to co-create with players around the world.
In anticipation of contributing to enhancing the drug discovery and R&D capabilities of the industry as a whole in the future, we will create world-class human resources from Chugai Pharmaceutical that are at the top level of the healthcare industry. - 08 Diversity, equity, and inclusion
- Foster an inclusive organizational culture that respects diverse thinking and ideas and challenges together to pursue innovation. In doing so, we will improve and correct imbalances that may be obstacles while creating opportunities for diverse human resources to play active roles. We will promote diversity, equity, and inclusion in all aspects of our business activities. Through these activities, we will contribute to the realization of an inclusive society that respects diversity.
- 09 Employee well-being
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We maintain a healthy, safe and secure work environment for employees. We believe that the health of employees is the foundation of all business activities, and we will actively promote activities that contribute to promoting the health of employees.
In addition, we will improve the engagement of each and every employee, and promote the establishment of an environment where employees can work independently and autonomously, and have a sense of work satisfaction, motivation in life, and be active both physically and mentally. - 10 Privacy protection and responsible use of digital technology
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Comply with regulations, collect and use data in a fair manner, build robust management mechanisms, and work with stakeholders to cope with appropriate personal information protection and information security.
We will actively utilize digital and other new technologies with a high level of ethics while keeping in mind the changing environment and give an example to stakeholders and society. - 11 Respect for human rights
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We respect individual dignity and human rights as the right for every single person to live own life freely with peace of mind and pursue happiness. As a life sciences company, it is essential to not infringe on human rights. Based on this principle, we prevent, correct, and reduce violations of the human rights of employees involved in business activities and workers in the value chain, including their right to work.
We will continuously and effectively carry out this initiative, including information disclosure, throughout the industry. - 12 Corporate governance and stakeholder engagement
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We appropriately manage important management items under a highly effective system that separates management decision-making from business execution and supervision. Ensure management autonomy and independence to achieve sustainable growth and increase corporate value.
Focusing on corporate accountability, we will strive for highly transparent and appropriate disclosure of information. At the same time, we will engage in dialogue with stakeholders to understand society’s demands on our company, including courteous and easy-to-understand communication on pharmaceutical products and services. - 13 Ethics, compliance and risk management
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Ensure high ethical standards in all activities.
We will comply with laws and regulations, respond to the changing demands of society, and build open and cooperative relationships with stakeholders to ensure transparent and fair corporate activities. Establish basic principles of bioethics including biotechnology, promote understanding and compliance among employees, and strive to handle them properly while continuously showing our efforts as a role model to the industry.
In addition, we will centrally identify, organize, and visualize all risks related to our business activities. We will promote integrated, effective, and efficient risk management, and also promote activities based on the Risk Appetite Statement. - 14 Climate change and energy countermeasures
- We will work together with our suppliers to reduce GHG emissions, use sustainable energy, disclose information, in order to contribute to climate change countermeasure. We will proactively and actively advance initiatives that contribute to the regeneration of the global environment, including technological innovations that enhance the environmental functions of manufacturing facilities, etc., investments in them, and reductions in the use of CFCs and HCFCs.
- 15 Contribution to circularity and water management
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We actively strive to design and implement business activities that address the circular economy, including zero waste emissions, and contribute to the realization of a society in which resources are effectively used.
In view of social issues related to plastics, such as marine pollution, etc., plastic waste will be reduced and recycling will be promoted. In addition, we will work to optimize appropriate wastewater treatment and consumption throughout our value chain to promote water resource management, conservation, and recycling. - 16 Protection of biodiversity
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Efforts for minimizing the impact on biodiversity shall be made including proper use and management of chemical substances, the prevention of air and soil pollution, and the reduction of the amount of hazardous chemical substances used and hazardous waste.
Information disclosure for this efforts shall be openly conducted.
We will work on natural regeneration in cooperation with various players to connect the irreplaceable Earth to the next generation.
Process to Formulate Material Issues
Chugai first formulated the Material Issues in 2019 and has been reviewing it annually based on future business environmental outlook.
In 2024, Chugai conducted a comprehensive review and revision of its materiality, placing sustainability at the center of our business activities.
In the 2024 review, we actively incorporated perspectives from a wide range of external stakeholders, including healthcare professionals, patient groups, academia, financial market participants, public interest foundations, and NGOs. Additionally, considering future environmental trends and risks surrounding business activities, we comprehensively identified issues expected and required by society. Furthermore, we review carefully examined and incorporated areas where Chugai may not sufficiently meeting expectations.
In assessing importance, we assessed from the perspective of double materiality: “the impact of the environment and society on the company (financial materiality)” and “the impact of the company on the environment and society (impact materiality).”
Materiality is positioned as a guiding principle (important elements) for organizing important management issues, including sustainability, and for determining management direction and policies. We will review it annually based on the progress of management strategies and requirements from society, and update it to the most appropriate form as needed.
Med-to long-term environmental analysis and extraction of initial hypothesis

- To confirm the basic policies of the company’s management, and organize the existing information including strategies, business activities, trends in the surrounding environment.
- Based on the information organized, the how to assess the materiality is determined.
Selection of candidate material issues

- Extract potential material issues from insights obtained through interviews with experts as well as the analysis results from both the external and internal environment perspectives (Compose a long list and then narrow it down to a short list).
Assessment of Impact Materiality

- Assess the impact of the company (business activities) on the environment and society (assess the impact by company in conducting its business activities).
Assessment of Financial Materiality

- Assess the impact of the environment and society on the company (Assess risks and opportunities that could result in significant financial impact such as results of operations or impact future cash flows in the near to medium term).
Dialogue with Stakeholders

- Revise and refine identified and prioritized materiality (drafted) based on insights gained through stakeholder interaction.
- Reassess from both impact and financial perspective as needed.
Determination of Material Issues

- Finalize material issues including the stories assciated with whole material issues.
- The final draft shall be approved by the Board of Directors after deliberation by the Executive Committee.