CSV Materiality and SDGs
Kyowa Hakko Kirin Group’s Management Philosophy and CSV Management
In its management philosophy, the Kyowa Hakko Kirin Group upholds the principle of striving to create new value by capitalizing on its strengths in life sciences and technologies with the aim of contributing to the health and well-being of people around the world. By “new value,” we mean value that can be shared by society at large. In other words, we focus on “Creating Shared Value (CSV).” Our Group practices CSV management aimed at realizing improved corporate value through the creation of both social and economic value by addressing social issues.
Kirin Group’s CSV Commitment
The Kirin Group, to which our Group belongs, positions CSV as the core of its management. Among the social issues that need to be addressed through its business, the Kirin Group selected the most critical issues of all and translated them into CSV commitments in reference to the Sustainable Development Goals (SDGs)*. The Kyowa Hakko Kirin Group adopts four of the Kirin Group’s CSV commitments in the health field and the environment field—“Evolution in medical treatment,” “Health-oriented business management,” “Supporting self-care for healthy people and people with pre-disease” and “Reflecting environmental activities in our business strategies”—as its own important CSV management goals. By fulfilling these CSV commitments, we hope to contribute to the achievement of SDGs, especially the four SDGs related to our commitments.
| SDGs Goal・Target |
Kirin Group's CSV Commitments Tackled by Kyowa Hakko Kirin Group |
|
|---|---|---|
| Health and well-being |
Achieve universal health coverage, including financial risk protection, access to quality essential health-care services and access to safe, effective, quality and affordable essential medicines and vaccines for all （Target：3.8） |
Evolution in medical treatment Health-oriented business management |
Enhance scientific research, upgrade the technological capabilities of industrial sectors in all countries, in particular developing countries, including, by 2030, encouraging innovation and substantially increasing the number of research and development workers per 1million people and public and private research and development spending （Target：9.5） |
Supporting self-care for healthy people and people with pre-disease |
|
| The environment |
Strengthen resilience and adaptive capacity to climate-related hazards and natural disasters in all countries（Target：13.1） |
Reflecting environmental activities in our business strategies |
By 2030, substantially increase water-use efficiency across all sectors and ensure sustainable withdrawals and supply of freshwater to address water scarcity and substantially reduce the number of people suffering from water scarcity （Target：6.4） |
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- Sustainable Development Goals (SDGs): A collection of 17 goals that international society should address over 15 years between 2016 and 2030 in order to realize sustainable global development. The SDGs were adopted by the United Nations summit in September 2015.
CSV Materiality and SDGs
In practicing its CSV management, the Kyowa Hakko Kirin Group identified issues that need to be tackled with top priority as CSV material issues (materiality) in view of their impacts on social sustainability and the Group’s business, and in reference to ISO 26000 and other guidelines. CSV materiality, which is also consolidated into the Group’s FY2016‒2020 Mid-term Business Plan, incorporates, as its core issues, four of the Kirin Group’s CSV commitments regarding health and the environment.
Identification/Implementation Process of CSV Materiality
Step1 Listing of issues
- We listed issues that need to be examined based on the Group’s management philosophy and business visions as well as its existing CSR initiatives by following major international guidelines that help organizations fulfill their social responsibility, including ISO 26000, Global Reporting Initiative (GRI) guidelines, and the Sustainability Accounting Standards Board (SASB) sustainability accounting standards, and in consideration of the expectations of stakeholders.
Step2 Assessment of impact on social sustainability and business
- The listed issues are prioritized from the perspectives of impact on social sustainability and impact on business, and a materiality matrix is formulated.
Step3 Identification of materiality (material issues)
- From among issues plotted on the materiality matrix, those that need to be addressed with priority under the Mid-term Business Plan are identified as our CSV materiality.
Step4 Confirmation of validity and finalization
- The validity of materiality is confirmed based on hearing from executives and discussions with subsidiaries and relevant divisions. When approved by the Group CSR Committee, the materiality is finalized.
Step5 Implementation and assessment
- CSV materiality is incorporated into the business management plan for the relevant fiscal year formulated by each subsidiary and division for implementation. Updates on progress and stakeholders’ requests are monitored to review the plan for necessary adjustments.
CSV Materiality and SDGs
CSV materiality were identified by referring to such guidelines as ISO 26000. In terms of their relevance to the SDGs, we have identified issues related to a total of 13 SDGs: four SDGs associated with our core issues derived from the Kirin Group’s CSV commitments, and nine SDGs that must be tackled simultaneously as we conduct our business operations focused on the aforementioned four SDGs. We believe that conducting business with a focus on solving CSV materiality will contribute to the SDGs. Our way of helping to achieve the SDGs will vary depending on how our Group develops its businesses. Regardless, we aim to play a greater role in driving progress toward meeting the SDGs by accelerating and expanding our business operations.
| CSV Materiality | SDGs | Initiatives |
|---|---|---|
Organizational Governance
|
Vision, Mission & Values Organizational Governance |
|
Human Rights
|
Reduce inequality within and among countries |
Respect for Human Rights |
Labor Practices
|
Ensure healthy lives and promote well-being for all at all ages (Derived from Kirin Group’s CSV Commitments) |
Promotion of Workplace Health and Safety |
|
Achieve gender equality and empower all women and girls |
Promotion of Diversity & Inclusion | |
|
Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all |
Human Resource Development and Corporate Culture | |
Environment
|
Ensure availability and sustainable management of water and sanitation for all (Derived from Kirin Group’s CSV Commitments) |
Initiatives to Preserve Water Resources Initiatives to Prevent Water Contamination |
|
Ensure access to affordable, reliable, sustainable and modern energy for all |
Initiatives to Reduce CO2 Emissions | |
|
Take urgent action to combat climate change and its impacts (Derived from Kirin Group’s CSV Commitments) |
||
|
Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss |
Initiatives for Biodiversity Preservation | |
Fair Operating Practices
|
Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels |
Fair and Sincere Business Operations |
Consumer Issues
|
Ensure healthy lives and promote well-being for all at all ages (Derived from Kirin Group’s CSV Commitments) |
For People’s Health and Well-being |
|
Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation (Derived from Kirin Group’s CSV Commitments) |
To Deliver Safety and Security | |
|
Ensure sustainable consumption and production patterns |
||
Community Involvement and Development
|
Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all |
Coexisting with Society and Communities |
|
Strengthen the means of implementation and revitalize the global partnership for sustainable development |
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- Each SDG is tied to the most relevant CSV material issue. However, in actual practice, other CSV material issues are tackled at the same time in a cross-sectional and overlapping manner.
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- We aim to contribute to all the SDGs including those not specified above by indirectly engaging with them through the Group’s business operations.
