H.U.Group Holdings, Inc. · TSE:4544
H.U.Group — ESG Presentation (March 2022)
50 slides from H.U.Group's sustainability presentation, Mar 17, 2022
Slide 1: H.U. Group ESG Conference
H.U. Group ESG Conference March 17, 2022
Slide 2: Today's Agenda
Today’s Agenda ⚫ Our ESG Priorities ⚫ Human Rights & Human Resources ⚫ Environment ⚫ Procurement ⚫ Wrap-up 2
Slide 3: Our ESG Priorities
Our ESG Priorities Shigekazu Takeuchi Director, President and Group CEO, H.U. Group Holdings, Inc.
Slide 4: The H.U. Group Management Philosophy
The H.U. Group Management Philosophy Mission Create new value in healthcare and thereby contribute to human health and the future of medical care. Vision With our deep involvement in human health, we aim to be a group that contributes to the development of healthcare through trust and innovation. Va
Slide 5: Definition of Materiality
Definition of Materiality ✓ As assets which create corporate value, both tangible assets such as equipment for expanding production and facilities for high efficiency testing and intangible assets such as human resources, patents and knowhow are important ✓ The H.U. Group’s definition of materiality
Slide 6: Materiality of H.U. Group
Materiality of H.U. Group Growth foundation ESG Environment Social Governance Relationship with all Brand stakeholders Anti- Climate management corruption / change Sustainable Resilience Compliance procurement Ｅ Ｓ Ｇ Intellectual Customer Information Risk property / Ｅ Ｓ Ｇ relations security managemen
Slide 7: H.U. Group Sustainability Roadmap
H.U. Group Sustainability Roadmap Three-Year Targets (FY2020–2022) Quantitative targets Qualitative targets ➢ CO2 emissions: -7% (Base: FY2017) ➢ Waste plastic recycling rate: +15% ➢ Continuous enlightenment of clinical Environment Philanthropy (Base: FY2017) testing for 40 years ➢ CDP: B plus Human
Slide 8: Organizational Structure for Promoting Sustainability
Organizational Structure for Promoting Sustainability Built organizational structure with Sustainability Committee, chaired by the President and Group CEO, as the highest organ H.U. Group’s organizational structure for sustainability Organizational structure for promoting sustainability • Chaired by
Slide 9: Corporate Governance
Corporate Governance • Adopted company with committees system in 2005（now company with three committees system) ✓ Six of eight directors are independent external directors ✓ Nominating, Audit and Compensation Committees are each chaired by an outside director ✓ Outside directors constitute the major
Slide 10: Recent Topics
Recent Topics FES w.u.croup
Slide 11: Create New Value in Healthcare: Leading Response to COVID-19
Create New Value in Healthcare 1 Leading Response to COVID-19 Track record of responding to SARS Circulation of data verified in testing for the development of reagents Synergies of H.U. Group Launch of ESPLINE SARS-CoV-2 Launch of LUMIPULSE SARS-CoV-2 Began providing comprehensive lab (May 2020) (J
Slide 12: Create New Value in Healthcare: H.U. Bioness Complex
Create New Value in Healthcare 2 Social challenges addressed through H.U. Bioness Complex 1. Demand to reduce social welfare costs (medical costs) 4. Need for more comprehensive community-based healthcare 2. Demand to control clinical testing costs while maintaining the 5. Disaster response (uninter
Slide 13: Human Rights & Human Resources
Human Rights & Human Resources Shigekazu Takeuchi Director, President and Group CEO, H.U. Group Holdings, Inc.
Slide 14: Basic Approach/Policy for Human Rights & Human Resources
Basic Approach/Policy for Human Rights & Human Resources ⚫ Respond to medical care and healthcare needs, Fundamental Approach to Sustainability exceed customer expectations ⚫ Gain and maintain trust from all stakeholders Firm establishment in organizations through incorporation in Values and Traits
Slide 15: Organizational Structure for Human Rights & Human Resources
Organizational Structure for Human Rights & Human Resources Organizational structure for health management promotion Officer in charge of human resources ＝ H.U. Group Holdings President and Group CEO Health Management Officer President and Group CEO Human Rights & Human Reporting and deliberation Di
Slide 16: Sustainability Roadmap for Human Rights & Human Resources
Sustainability Roadmap for Human Rights & Human Resources Making steady progress on KPIs and key initiatives on each theme FY2020 Main themes KPI Main Initiatives FY2021 targets (Target) (Actual) ✓ HUHD Recruitment Section and Percentage of 15% 17% 18% Continuation and strengthening of initiatives P
Slide 17: Recent Initiatives: Human Rights & Human Resources 1
Most Recent Initiatives/Achievements for Human Rights & Human Resources 1 Certified as White 500 Certified Health & Productivity Management Outstanding Organizations Recognition Certified Health & Productivity Management Program (Large enterprise category) Outstanding Organizations Recognition Progr
Slide 18: Recent Initiatives: Human Rights & Human Resources 2
Most Recent Initiatives/Achievements for Human Rights & Human Resources 2 Support for career self-reliance Career development structure for H.U. Group employees H.U. Business College (opened in Jan. 15) Job-class-specific Essential/Groupwide Optional/Company-specific training Experience Career optio
Slide 19: Future Initiatives for Human Rights & Human Resources
Future Initiatives for Human Rights & Human Resources 1 Establishment of business unit to promote diversity / Increase in percentage of newly hired female graduates (FY2020) 108 60 Women Men Average employment year Women < Men Percentage of female managers in Japan (FY2020) 13.4% Women Percentage of
Slide 20: Future Initiatives for Human Rights & Human Resources 2
Future Initiatives for Human Rights & Human Resources 2 Introduction of program to encourage employees to take childcare leave • In addition to childbirth leave (existing), employees taking childcare leave will be granted childcare support leave (paid leave of 14 consecutive days) • In addition to a
Slide 21: Environment
Environment Hiroaki Kimura Executive Officer, H.U. Group Holdings, Inc.
Slide 22: Environment-Related Materiality
Environment-Related Materiality Identified environment-related materiality from the two perspectives of matters that are financially material in influencing business value and material to the market, the environment, and people in line with the concept of double materiality ■ Identified climate chan
Slide 23: Environmental Basic Approach/Policy
Environmental Basic Approach/Policy Based on the "Environmental Policy," the H.U. Group initiates to reduce the environmental burden and improve operational efficiency in response to the deepening global environmental problems such as climate change ■ Initiatives to reduce environmental impact based
Slide 24: Organizational Structure for Environment
Organizational Structure for Environment Established the H.U. Group Environmental Management System (EMS) and formulating and implementing plans for environmental activities on themes such as climate change and recycling-oriented society. Striving to respond to future developments and take correctiv
Slide 25: Environmental Risk Management
Environmental Risk Management H.U. Group Holdings, Inc. Established a Groupwide risk management President and Group CEO structure and implement risk management Instructions Reporting according to a uniform policy that applies to Risk Management Committee Chairperson: CFO Secretariat : Corporate Plan
Slide 26: Long-Term Environmental Goals and Roadmap
Long-Term Environmental Goals and Roadmap The H.U. Group is implementing environmental initiatives with the long-term environmental goal of reaching net-zero CO2 emissions by 2050 ■ At the beginning of FY2021, Long-Term Environmental Goal was to reduce emissions on a sales intensity basis but this w
Slide 27: Results of Environmental Activities
Results of Environmental Activities Achieved FY2020 single fiscal year targets for both CO2 reduction (Total of Scope 1 & 2 emissions (sales intensity basis)) and improvement of total recycling rate of waste plastic. Revised CO2 reduction target to absolute reduction target midway through FY2021 ■ I
Slide 28: Participation in Global External Initiatives
Participation in Global External Initiatives Becoming a signatory to/participating in initiatives for ambitious goal setting, and proactive external initiatives and information disclosure 28
Slide 29: TCFD Climate Change Scenario Analysis
TCFD Climate Change Scenario Analysis Declared support for TCFD recommendations in November 2021, in response to changing global trends in relation to global warming and increased information disclosure concerning climate-related risks and opportunities. Conducting scenario analysis using TCFD frame
Slide 30: Environmental KPIs
Environmental KPIs Set 2050 Long-Term Environmental Goals and CO2 Emission 2050 formulated a medium-to-long Sustainability Net Zero Roadmap to address materiality Waste Plastic Recycling 100％ ■ CO2 reduction for climate change CO2 emissions ■ Waste plastic recycling for recycling-oriented Scope 1 &
Slide 31: Roadmap for CO2 Reduction
Roadmap for CO2 Reduction 25% reduction (Base: FY2020) + Expected increase Changes in energy mix, etc.*1 12,474 Energy conservation activities t-CO2 Procurement of renewable 2,000t-CO2 energy, etc. Net Zero Revised in FY2021 t-CO2 39,494 (Around 5% of total） t-CO2 75% reduction 29,620 (Base: FY2020)
Slide 32: Climate Change: Priority Issues
Climate Change: Priority Issues Aim to achieve net zero carbon emissions by 2050 for the realization of a decarbonized society through initiatives such as implementation of energy conservation activities, increased procurement of renewable energy and introduction of EVs and FCVs, taking into conside
Slide 33: Improvement of Plastic Recycling Rate
Response to Recycling-Oriented Society: Improvement of Plastic Recycling Rate The H.U. Group is implementing initiatives with "Waste Plastic Recycling 100% by 2050" as Long-term Environmental Target ■ Set FY2030 target of "Waste Plastic Recycling 90%" as intermediate target on the way to FY2050 goal
Slide 34: Ratings of ESG Rating Agencies
Ratings of ESG Rating Agencies Awarded a rating of A- in the CDP Climate Change Report 2021 as a company leading on environmental transparency and action Sompo Japan Green Open Fund (Buna no Mori) Key Points ・ Establishment of H.U. Group Sustainability Committee comprised of management executives an
Slide 35: Procurement
Procurement Isao Tada General Manager of the Procurement Division, H.U. Group Holdings, Inc.
Slide 36: Introduction
Introduction Background to identification of Sustainability Procurement as ESG materiality Social Relationship with all stakeholders Resilience Sustainable procurement • Strengthening of sustainability management initiatives • Increasing need for consideration of social responsibility in relation to
Slide 37: Basic Approach/Policy for Procurement
Basic Approach/Policy for Procurement Procurement Policy The H.U. Group engages in fair, stable, and sustainable procurement in order to contribute to human health through the creation of new value. We value our relationship with suppliers, pursuing the following basic approach to procurement in est
Slide 38: Organizational Structure for Procurement
Organizational Structure for Procurement • The division head of Procurement at H.U. Group Holdings as the responsible official and Procurement as its principal, the Procurement Subcommittee formulates and executes plans related to sustainable procurement. • This subcommittee regularly monitors the p
Slide 39: Sustainability Roadmap for Procurement
Sustainability Roadmap for Procurement Sustainability roadmap for procurement (three-year targets) Performance Cumulative total KPI Performance Target 2020 2019-2020 Major Category Subcategory Item Unit 2019 Target Actual Target Actual 2021 2022 Questionnaire Questionnaire collection rate ％ 100 100
Slide 40: Initiatives for Procurement: Self Assessment Tool
Initiatives for Procurement 1 Assessment Using Self Assessment Tool We confirm the status of initiatives toward the realization of a sustainable society with business partners accounting for 80% of the purchased amount of each Group company approximately once every three years. ・ Specifically, we ut
Slide 41: Initiatives for Procurement: Assessment Results
Initiatives for Procurement 2 Assessment Results 高い(>80%) High (> 80%) 低い(≦80%) Low (≤ 80%) FY2019~FY2020 Assessment*1 Average favorable response rate by item 評価項目 Assessment items 2019-2020 2019-2020 2019調査 2020調査 2019 assessment 2020 assessment 122 companies 89 domestic 33 overseas 122社 国内89社 comp
Slide 42: Future Initiatives for Procurement 1
Issues Visualized Based on Aggregated Future Initiatives for Procurement 1 Results and Future Initiatives Assessment Issues Initiatives items (2) Human rights Need to raise awareness of initiatives ・ Seek to raise awareness of initiatives among domestic companies among domestic companies through the
Slide 43: Future Initiatives for Procurement 2
Future Initiatives for Procurement 2 Ongoing Initiatives and Targets ➢ Implementation of self-assessment once every three years * At 89 business partners of six Group companies*1 assessed in FY2019 ➢ Communication with business partners until next self-assessment ＊With 61 business partners of two Gr
Slide 44: Wrap-up
Wrap-up Atsuko Murakami Executive Officer and CFO, H.U. Group Holdings, Inc.
Slide 45: H.U. Group Sustainability Roadmap
H.U. Group Sustainability Roadmap Three-Year Targets (FY2020–2022) Quantitative targets Qualitative targets ➢ CO2 emissions: -7% (Base: FY2017) ➢ Waste plastic recycling rate: +15% ➢ Continuous enlightenment of clinical Environment Philanthropy (Base: FY2017) testing for 40 years ➢ CDP: B plus Human
Slide 46: Ratings Awarded to HUHD by ESG Rating Agencies
Ratings Awarded to HUHD by ESG Rating Agencies Global rating agencies Domestic rating agencies Toyo Keizai CSR Survey MSCI ESG Ratings (Survey target in 2021: 1,631 companies) ✓ Upgraded from A rating to ✓ CSR Ranking AA rating (second highest rating) Overall: 234th (241st in 2020) in 2020 Industry:
Slide 47: H.U. Group's Future Initiatives
H.U. Group's Future Initiatives Increase employee Investment motivation Contribution Human Human to society Resources Resources through business Build trust Increase in the company company loyalty Sustainable growth 47
Slide 48: Appendix
FES y.u.croup Appendix
Slide 49: Relationship between H.U. Bioness Complex and SDG targets
Relationship between H.U. Bioness Complex and SDG targets Aim to achieve SDGs through H.U. Bioness Complex and R&D • Contribute to the control of health care spending by providing high quality testing at low cost • Expand testing capacity alongside improvement in test processing capacity • Contribut
Slide 50: Contacts
Contacts: Public Relations/Sustainability Dept. Phone: +81-3-6279-0884 IR/SR Section Phone: +81-3-5909-3337 Disclaimer regarding forward-looking statement: The performance forecast provided in this document is prepared by the management based on currently available information and various hypotheses