Perspective on Environmental Impact

Perspective on Environmental Impact (INPUT/OUTPUT)

Sumitomo Dainippon Pharma's business activities affect the environment in various ways at every stage of research and development, manufacturing, logistics and marketing, as well as the use of its products by customers. All our employees are aware of this environmental impact and work to reduce it.

Perspective on Environmental Impact (INPUT/OUTPUT)

Note: Totals include figures for workplaces in Japan only (plants. research laboratreies, distribution centers, Osaka Heed office, Tokyo Head Office, brances and business offices)

Environmental Accounting

At Sumitomo Dainippon Pharma, we undertake environmental accounting to gain a quantitative understanding of the investments and costs associated with environmental protection and the relative effectiveness of each. In our report for the current fiscal year, we have included the calculated results for fiscal 2016 performance.

Time period covered and scope

Period covered: April 1, 2016 to March 31, 2017
Scope: The entire company
Method of calculation: Followed Environmental Accounting Guidelines 2005 (Ministry of the Environment, Japan)

(Millions of Yen)

Classification of the cost of environmental protection Investment Expenditure
1. Business area costs (1) Pollution prevention cost 3.5 612.1
(2) Global environmental protection cost 73.2 137.7
(3) Resources recycling cost 0 208.9
2. Upstream and downstream costs 0 3.1
3. Administration cost 0 153.9
4. Research and development cost 0 0
5. Social activities cost 0 2.4
6. Environmental remediation cost 0 0.1
7. Other costs 0 0
Total 76.7 1,118.1

Economic Effect

The economic effect of environmental protection measures was calculated using only the effects that could be computed on a firm basis, and no effects estimated through hypothetical calculations were included.

(Millions of yen)

Particulars Economic effect
Effect of recycling activity 1.0
Effect of resource saving 0
Effect of energy saving 192.2
Total 193.2

Effect of Environmental Protection

The environmental impact was calculated and totaled on the basis of environmental performance indices, and the effect of environmental protection is presented here through a simple comparison with the previous year.

Particulars of the effect Classification Increase/decrease of environmental impact Environmental impact in FY 2016
Effect on resources used for business activities Energy consumption Electric power [10,000 kWh]* 0 42,228
Fossil fuels [kl]* 466 1,717
Water consumption [kt] 44 925
Effect on environmental impact and waste arising from business activities CO2 [kt] -239 73,768
Organic chlorines released into the atmosphere [t] 1.1 5.0
PRTR substances released [t] 1.7 6.5
SOx released [t] 0.02 0.25
NOx released [t] 9.7 43.5
Ash dust emissions [t] 0 0.9
Total amount of wastewater [kt] 41.1 877
COD load [t] (public water bodies and sewerage systems) 0.7 5.4
Final disposal of waste [t] 7.6 20.4

* As crude oil equivalent (including gasoline)

Mid-term Environmental Plan

Sumitomo Dainippon Pharma has clarified key issues related to its environmental activities and has established its Mid-term Environmental Plan as an action plan to realize these goals and make continuous improvements toward them. The targets of the Environmental Plan are as follows: (1) reduce emissions of chemical substances; (2) promote energy saving and address climate change; (3) avert power shortages; (4) reduce waste; (5) promote communication with Group companies; (6) promote communication with local communities; (7) address biodiversity; (8) enhance environmental education. During fiscal 2016, we made steady progress in most areas, except for a few objectives. In the future, we will continue to pursue further improvements.

Note: Although the Mid-term Environmental Plan is a three-year plan, it is reviewed each year to adjust for changes in the situation within and outside the Company.

Mid-term Environmental Plan

Degree of progress:
◎:Goal achieved :Steady progress made toward objective
△:Progress somewhat behind schedule

Goals of Special Importance Objectives Progress in FY2016 Degree of Progress
1.Reduce emissions of chemical substances (1) Properly manage chemical substances, and continually strive to reduce emissions of chemical substances (PRTR substances, etc.) into the environment With an increase in the volume of PRTR substances handled, atmospheric emissions of these substances increased approximately 36% over the previous year, but emission rates (emission volume/amount handled) were held nearly the same year on year.
2. Promote energy savings and address climate change [1] Numerical targets: [1] Numerical targets:
(1) Reduce CO2 emissions for the Company to 23% of FY2005 levels by FY2020 (1) Company-wide CO2 emissions in FY2016 stood at 89.6% of the level in FY2005 and 99.4% of the previous fiscal year.
(2) Improve per-unit energy consumption and CO2 emissions for the whole Company by 1% or more per year, respectively (2) Per-unit energy consumption: 101.7% of FY2015 Per-unit CO2 emissions: 102.5% of FY2015
[2] Activity targets: [2] Activity targets:
(1) Promote the introduction of energy-efficient equipment and machinery at the Company's work sites (1) Invested in energy saving equipment, such as air conditioning equipment at the Suzuka Plant
(2) Promote the use of renewable energy at the Company's work sites (2) Currently operating solar power generation equipment at the Central Research Laboratories and the Osaka Research Center
(3) Promote energy saving at the Company's work sites (3) Implemented across the whole Company and at each work site
(4) Promote energy saving at the Company's work sites (4) Considered various measures at each work site
3. Avert power shortages Consider and implement measures to reduce energy use in summer and winter Each work site set unique targets and implemented measures to reduce energy use
4. Reduce waste (1) Maintain final landfill disposal by the whole Company at less than 1% of waste generated (1) Maintained at less than 1% (FY2016 result 0.2%)
(2) Plants and research laboratories: Maintain final landfill disposal of industrial waste at less than 1% of amount generated (2) Zero emissions goal achieved at three plants and two research laboratories, but not achieved at one plant (Increased waste due to production site restructuring).
(3) Other sites: Continue complete recycling of recyclable waste (3) Other sites made progress in recycling recyclable waste
5. Promote communication with Group companies (1) Support environmental and safety activities of Group companies (1) Conducted environmental and safety audits at two Group companies in Japan, and held meeting in September 2016 to exchange information on the environmental management of domestic Group companies
6. Promote communication with local communities (1) Understand environmental risks that corporate activities can present to the local community (1) Gained understanding of most risks and implemented countermeasures
(2) Disclose information to the local community in an appropriate way (2) Implemented appropriately
(3) Participate actively in local environmental activities (3) Actively implemented at each work site
7. Address biodiversity Examine issues to be addressed and implement activities Educational activities and initiatives concerning biodiversity are carried out at each business site.
The entire Company is carrying out a five-year plan called the Owls Forest Restoration Project.
8. Enhance environmental education (1) Establish and implement environmental education system for employees (1) Formulated environmental education plan at each work site and implemented education in accordance with plans
(2) Train key persons in environmental management (2) Formulated training plans at each work site and implementing training in accordance with plans