Ono Pharmaceutical Co., Ltd. · TSE:4528
Ono Pharmaceutical — ESG Presentation (March 2023)
48 slides from Ono Pharmaceutical's sustainability presentation, Mar 28, 2023
Slide 1: ESG Presentation Meeting
ESG Presentation Meeting ~ Towards Enhancing Corporate Value ~ March 28, 2023
Slide 2: Cautionary Notes
Cautionary Notes Forecasts and other forward-looking statements included in this document are based on information currently available and certain assumptions that the Company deems reasonable. Actual performance and other results may differ significantly due to various factors. Such factors include
Slide 3: Today's Agenda
Today's Agenda 1. Sustainable Management 2. Corporate Governance 3. Efforts to Strengthen the Compliance Management System 4. Expansion of Human Capital 5. Protection of the Global Environment 6. Efforts to Improve Access to Healthcare 2/46
Slide 4: Sustainable Management
Sustainable Management 3/46
Slide 5: Sustainable Management Policy
Sustainable Management Policy For more than 300 years since our founding, we have walked hand in hand with society. To save people who are suffering from disease, we have created a series of innovative new medicines that were thought to be impossible. We will continue to contribute to people’s healt
Slide 6: New Material Issues (Priority Management Issues)
New Material Issues (Priority Management Issues) 5/46
Slide 7: Creation of Innovative Drugs
Material Issue 1 Creation of Innovative Drugs Management of Priority Issues The creation of innovative drugs is the practice of our corporate philosophy, “Dedicated to the Fight against Disease and Pain,” and is the core value we provide Reason for being to society. To sustainably create this value,
Slide 8: Pipeline Expansion
Material Issue 2 Pipeline Expansion Management of Priority Issues Reason for being Our pipeline is the source of our sustainable growth. We continue enriching our a priority issue pipeline to constantly provide innovative drugs to patients. The speed and accuracy of establishing PoC* for new drug ca
Slide 9: Corporate Governance
Corporate Governance ond ONO PHARMACEUTICAL CO, LTD. 8/46
Slide 10: Efforts to Strengthen Governance
Efforts to Strengthen Governance Introduction of performance-linked stock compensation plan Review of remuneration system (Fiscal Year) Chair of Executive Appointment Meeting Strengthening of /Executive Compensation Meeting Supervisory 2022 (President ⇒Outside Board of Director, Jan 2022) Function T
Slide 11: Outside Board of Directors
Outside Board of Directors Constitution Three of eight board of directors are outside directors in order to strengthen the supervisory function and maintain and improve the transparency of management and the accuracy of business execution. Masao NOMURA Akiko OKUNO Shusaku NAGAE Corporate Advisor Pro
Slide 12: Support for functioning of Outside Directors
Support for functioning of Outside Directors Arrangement of an environment in which Outside Directors can fulfill their expected roles and functions Opinion-exchange meeting： Opinion-exchange meetings on important business matters are held before submitting them to the Board of Directors Meeting Tra
Slide 13: Executive Appointment / Executive Compensation Meetings
Executive Appointment / Executive Compensation Meetings The executive appointment and executive compensation, both of which have governance-related importance are discussed at the meetings composed of highly independent Outside Board Director as key members in order to ensure management transparency
Slide 14: Evaluation of Effectiveness in Board of Directors Meeting
Evaluation of Effectiveness in Board of Directors Meeting Every year, an evaluation of the effectiveness of the Board of Directors is conducted by all members of the Board of Directors and audit & supervisory board members. Self-assessments based on questionnaires and interviews are conducted and ut
Slide 15: Efforts to Strengthen the Compliance Management System
Efforts to Strengthen the Compliance Management System 14/46
Slide 16: Efforts to Strengthen the Compliance Management System
Efforts to Strengthen the Compliance Management System (1) Revision of rules on the donations (2) Efforts to strengthen the compliance management system (3) Efforts to maintain the lessons learned from the Mie University misconduct (4) Training for employees (5) Whistleblowing system 15/46
Slide 17: Operation of the Review Board for Academic Society/General Donations
(1) Operation of the Review Board for Academic Society/General Donations and Supporting Membership Fees [Ideal state] While maintaining social contributions to the development of medications and pharmaceuticals, Operational (i) have an independent department make donation decisions, (ii) prevent inv
Slide 18: Efforts to Strengthen the Compliance Management System
(2) Efforts to Strengthen the Compliance Management System Executive Directors/Division Director Compliance Management Department 9 Compliance Officers (COs) ∙ Risk management Assessment Office ∙ Action on incidents ∙ Response to consultations Regular compliance management Regular consultation/repor
Slide 19: Efforts to Maintain the Lessons Learned from the Mie University Misconduct
(3) Efforts to Maintain the Lessons Learned from the Mie University Misconduct Training focusing on the Mie University misconduct: Avoiding making the same mistake again > Message from the President on the purpose of the training [Lectures by instructors (senior partners, Compliance Management Depar
Slide 20: Expanding and Enhancing Compliance Training
(4) Expanding and Enhancing Compliance Training Goal: “Become a company in which every employee can act by taking compliance as their own responsibility” ➢ Company-wide compliance training procedure Jan-Feb: General compliance (Mie University bribery case ) Feb-Mar: Anti-Bribery (e-Learning) Oct-Dec
Slide 21: Key Points of the Amended Whistleblowing Policy
(5) Key Points of the Amended Whistlebling Policy and Status in Reported Cases [Key points of the Whistlebling Policy] (i) Non-anonymous (i.e., with real names) reporting is required, in principle (if there is a justifiable reason anonymous reporting is also possible). (ii) Investigations are led by
Slide 22: Expansion of Human Capital
Expansion of Human Capital 21/46
Slide 23: Four Growth Strategies and the Management Infrastructures
Four Growth Strategies and the Management Infrastructures Dedicated to the Fight against Disease and Pain Growth Growth Growth Growth strategy strategy strategy strategy (1) (2) (3) (4) Improving and expanding the Management Infrastructures and intangible assets supporting the growth strategy Human
Slide 24: Strengthening the Management Infrastructures
Strengthening the Management Infrastructures Enhancing the management infrastructures and supporting the growth strategies by expanding intangible assets ◆ Human capital expansion ➢ Cross-functional talent development (Next Executive talent, Globally Competent talent, Digital talent, Core Innovation
Slide 25: Training for Next Executive Talent and Globally Competent Talent
Training to Nurture the Next Executive Talent and Globally Competent Talent Purpose Nurture future candidates for management Next executive talent Future candidates for Future candidates for division Target Future candidates for officers business site heads heads and executives Selected Selected tal
Slide 26: Four Growth Strategies and the Management Infrastructures
Four Growth Strategies and the Management Infrastructures Dedicated to the Fight against Disease and Pain Growth Growth Growth Growth strategy strategy strategy strategy (1) (2) (3) (4) Implementing strategies = Specialized talent Supporting the Management Infrastructures= Cross-functional talent Im
Slide 27: Strengthening the Management Infrastructures
Strengthening the Management Infrastructures Enhancing the management infrastructures and supporting the growth strategies by expanding intangible assets ◆ Human capital expansion ➢ Cross-functional talent development (Next Executive talent, Globally Competent talent, Digital talent, Core Innovation
Slide 28: Promotion of Female Participation
Promotion of Female Participation Plan Period: April 1, 2021 to March 31, 2023 (2 years) (1) Low percentages of female managers and female candidates for managers Target: Increase the percentage of women among candidates for managers to 15% or more As of December 1, 2022: 15.5% (2) Creation of a wor
Slide 29: Activities to promote Female Employee Participation
Activities to promote Female Employee Participation Foster a corporate culture that respects personal values and strives to create an organization that embraces diverse opinions ➢ KPIs set in light of the external and internal environments KPIs (for 2031): Women accounting for at least 20% of manage
Slide 30: Post-COVID Work Style
Post-COVID Work Style (From May 2023 onward) To foster a sense of unity and allow diverse working styles at the same time, telecommuting rules will be Set by Each Division, in principle. Optimal work styles are sought through periodical reflections and reviews. ∙ In principle, an opportunity for fac
Slide 31: Individual Diversity Development Program 1: Open Recruitment System
Individual Diversity Development Program 1: Expansion of the Open Recruitment System For the purpose of promoting employees’ career development and enhancing the organization’s vitality and competitiveness through personnel exchanges, we will solicit job offers from each department and reassign pers
Slide 32: Individual Diversity Development Program 2
Individual Diversity Development Program 2: (Expansion of Trial implementation the Open Recruitment System) since April 2022 Introduction of an internal challenge job system • Those who want to try a different role but are concerned about suitability • Those who are not thinking about moving to anot
Slide 33: Strengthening the Management Infrastructures
Strengthening the Management Infrastructures Enhancing the management infrastructures and supporting the growth strategies by expanding intangible assets ◆ Human capital expansion ➢ Cross-functional talent development (Next Executive talent, Globally Competent talent, Digital talent, Core Innovation
Slide 34: Protection of the Global Environment
Protection of the Global Environment 33/46
Slide 35: Environmental Promotion Structure
Environmental Promotion Structure Environmental management system compliant with ISO 14001 (production sites) Production site name Certification status Fujiyama Plant Certified Yamaguchi Plant Certified 34/46
Slide 36: Environmental Vision (established in 2019)
Environmental Vision (established in 2019) Recognizing that our business activities benefit from the environment and aiming to realize a sustainable and affluent society, we have adopted the environmental vision, “Environment Challenging Ono Vision (ECO VISION 2050)” and are striving to resolve envi
Slide 37: New Medium- to Long-Term Environmental Targets
New Medium- to Long-Term Environmental Targets CO2 Targets for realization of a decarbonized society New ∙ 2050: Zero greenhouse gas emissions from internal sources ∙ 2035: Zero greenhouse gas emissions from internal sources ∙ 2025: Carbon neutrality* within Ono * Net zero emissions after carbon off
Slide 38: Realization of a Decarbonized Society (Updated)
Realization of a Decarbonized Society (Updated) ∙ Our medium- to long-term targets for greenhouse gas emission reductions (our own emissions) have been approved by SBTi as science-based targets. ∙ To accelerate our efforts toward a decarbonized society, the target year to achieve zero Scope 1+2 emis
Slide 39: Priority of Greenhouse Gas Reduction Measures
Priority of Greenhouse Gas Reduction Measures Priority High Low IEMA’s GHG management Eliminate Reduce Substitute Compensate hierarchy Create systems that eliminate Promote energy use energy (Minase Research Institute) ✓ Activities for green conservation sustainable activities Introduce chemistry ✓
Slide 40: Climate-related Financial Disclosures (Risks)
Climate-related Financial Disclosures (Risks) • Endorsed the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) in October 2019 • Disclosed actions in the categories of governance, strategy, risk and opportunity management, and indicators and targets, as recommended by
Slide 41: Climate-related Financial Disclosures (Opportunities)
Climate-related Financial Disclosures (Opportunities) • Endorsed the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) in October 2019 • Disclosed actions in the categories of governance, * strategy, risk and opportunity management, and indicators and targets, as reco
Slide 42: Efforts to Improve Access to Healthcare
Efforts to Improve Access to Healthcare 41/46
Slide 43: Efforts to Improve Access to Healthcare
Efforts to Improve Access to Healthcare Material issue: Respect for human rights ✓ Human rights risk management ✓ Improving access to healthcare Drug shortage Insufficient medical Weak finances • Drugs not approved Infrastructure • Unable to pay for treatment • Drugs not supplied • Lack of medical p
Slide 44: Efforts to Improve Access to Healthcare
Efforts to Improve Access to Healthcare Drug shortage Insufficient medical Infrastructure Weak finances ◆ Obtain approval for rare diseases and pediatric use Approved indications for rare diseases Approved indications for pediatric use OPDIVO intravenous Malignant melanoma, Hodgkin lymphoma, Maligna
Slide 45: Efforts to Improve Access to Healthcare
Efforts to Improve Access to Healthcare Drug shortage Insufficient medical Infrastructure Weak finances ◆ Build medical infrastructure through partnership with NPOs _ONO Bridge Project_ Helping regions with poor medical infrastructure overcome challenges on their own not only by making donations but
Slide 46: External ESG Evaluations
External ESG Evaluations FY2018 FY2019 FY2020 FY2021 FY2022 World Index World Index DJSI — — Industry World Index Bronze Class Mover Climate A A A A A CDP Change Water B A- A- A A Included Included Included Included Included FTSE Score:3.2 Score:3.4 Score:4.1 Score:4.2 Score:4.3/5.0 MSCI Japan ESG S
Slide 47: Effectively Using External ESG Evaluations
Effectively Using External ESG Evaluations Questions asked by ESG rating agencies ≈ What a sustainable management company should think and do The level of sustainability they demand is increasing year by year. Communicate what society expects from us (context) to each department Sustainability Summa
Slide 48: Dedicated to the Fight against Disease and Pain
Dedicated to the Fight against Disease and Pain