Sustainability

Materiality

1.Ensuring compliance and strengthening the governance system

 

[Reasons for selection]
Ensuring compliance is essential to fulfil our corporate social responsibility. Moreover, in order to increase corporate value as a sustainable company, it is important to develop and enhance the foundational governance system and strengthen the risk management system.

 

[Vision]
We will cultivate a corporate culture in which all executives and employees act with high awareness of compliance and ethical standards, and aim to be an organization that can earn unwavering trust from society.

 

[KPI]
・Compliance training for all employees:100% attendance
・Number of serious compliance violations:0
・Strengthening the risk management system

2.Building a trustworthy pharmaceutical supply chain through the establishment of appropriate quality control and a stable supply system

 

[Reasons for selection]

It is our most important social mission to maintain a high standard of quality from beginning to end of our supply chain and to provide a safe and stable supply of pharmaceuticals, whether in ordinary times or in emergencies,.

 

[Vision]
In order to fulfill our social mission of providing a stable supply of pharmaceuticals, we will continue to contribute to the maintenance of the medical care system by building an advanced quality control system and innovative logistics functions, and continue to be a company that is needed by society.

 

[KPI]
・Maintenance of ISO certification at all logistics centers and certification at newly established centers
・Achievement of 100% participation rate in GDP-related internal training
・Optimization of the supply chain and expansion of information provision services
・Strengthening of BCP (conduct company-wide disaster drills at least once a year)

3.Solving issues in community medical care

 

[Reasons for selection]
Because it has become difficult to maintain the conventional medical care system due to the declining birth rate and aging population and changes in the medical environment, it is important to understand the characteristics and needs of each local community vis-a-vis these issues in order to make medical care and nursing care function efficiently.

 

[Vision]
We will ascertain the actual conditions and issues in each local community and make maximum use of our corporate group’s distribution system and customer support system to realize community healthcare design matched to the particular characteristics of each local area.

 

[KPI]
・Increase in events at pharmacies
・Promotion of Primary Care Pharmacist/Pharmacy
((FY 2028: 3% of claim rate for the Primary Care Pharmacist Guidance Fee)
(Promotion of acquisition of certification for Community-based integrated pharmacy)
・Promotion of Home Healthcare(FY2028:Home healthcare implementation rate 80%)
・Cooperation with government and local governments
・Expansion of last-mile delivery

4.Developing a vibrant workplace environment and fostering human resources who will create the future

 

[Reasons for selection]
Employees are the company’s assets, that is to say, our human resources. For the company’s sustainable growth, it is essential to respect the human rights of each employee, put in place an environment in which everyone can work with peace of mind, and develop personnel who can make the most of their individual abilities.

 

[Vision]
We will provide places where diverse human resources can gather and think out of the box in order to take on challenges, and establish workplace environment free from discrimination and harassment and a corporate culture in which employees continually grow and proactively tackle a variety of issues.

 

[KPI]
・Increase in the ratio of female managers (TOHO HOLDINGS’s targets by FY2028:25% /FY2030:30%, TOHO PHARMACEUTICAL’s targets by FY2028:7.5% /FY2030:10%)
・Increase in the utilization ratio of male childcare leave and the number of days(FY2030: Target of 100% of male childcare leave)
・Expansion of training themes
・Boosting employee engagement
・Increase in the ratio of paid vacation days(FY2028:Target of 60% of employees taking paid vacation days)
・Reduction of overtime work

5.Reducing our environmental impact and bringing about a recycling-oriented society

 

[Reasons for selection]a
It is important to deeply recognize the impact of our corporate group’s business activities on the global environment, to seek to harmonize all aspects of our activities with the environment, and to proactively work on the reduction of our environmental impact, environmental conservation activities, and efficient use of resources.

 

[Vision]
We will contribute to bringing about a sustainable society by raising the environmental awareness of each executive and employee, reducing the environmental impact of our entire supply chain, and making efficient use of resources.

 

[KPI]
・Reduction of greenhouse gas emissions(Targets(FY2019 (base year)):Short-term target (FY2025): 40% reduction/Medium-term target (FY2030): 60% reduction /Long-term target (FY2050): Carbon negative
・Renewable energy usage rate(Target FY2030:80%)
・Promotion of delivery efficiency (Target FY2030: Reduction of the mileage of sales vehicles by 30% compared to FY2024)
・Promotion of 3Rs (Reduce, Reuse, Recycle) including waste reduction
・Implementation of environmental training

Assessment process

In order to achieve sustainable growth and enhance corporate value over the medium to long term, it is important that we grasp social issues and the needs and expectations of stakeholders, and then that we identify issues that we need to address and implement initiatives to resolve them.
Amid rising interest in corporate social responsibility (CSR), we formulated materiality for the first time in FY2009. To achieve the Medium-Term Management Plan 2023-2025 “Create the Next Generation,” announced in FY2023, and the Ideal State of the Company, a Group aim, announced in FY2024, we redefined our materiality in December 2025 following the process outlined below.

SDGs

The Group is advancing initiatives that contribute to the achievement of the Sustainable Development Goals (SDGs), which consist of 17 global goals and 169 targets to be achieved by 2030. The goals that we place particular importance on are listed below.