Sustainability | Environment | Kowa Company, Ltd.

●Environmental Policy of Kowa Group

Basic View & Philosophy

We recognize that addressing environmental issues is a concern shared by all humankind and is essential for the business activities and survival of the Company, and we take these issues very seriously.
We also acknowledge the SDGs and initiatives under the Paris Agreement as part of our corporate social responsibility. Through our business activities, we shall work to mitigate and adapt to climate change, prevent pollution, conserve biodiversity and ecosystems, and use resources effectively, while also actively contributing to the sustainable development of society.

Policy

Taking into consideration the life cycle of our business activities, products, and services, we shall strive to realize our philosophy and avoid potential risks through business activities that comply with the following environmental policy.

1.Compliance with environmental laws and regulations
We shall comply with environmental laws, regulations and other matters agreed upon by the Kowa Group in our business activities.
2.Environmental conservation and prevention of pollution
- A.Appropriate management of chemical substances: We shall ensure the appropriate management of chemical substances in order to prevent environmental pollution.
- B.Contributing to the creation of a carbon neutral society: We recognize the risk of climate change and to avoid such risk, shall strive to conserve resources and energy as we work to realize a carbon neutral society.
- C.Contributing to the creation of a recycling-oriented society: With the aim of realizing a recycling-oriented society, we shall promote the reduction of waste generation, recycling, and the use of renewable materials through the promotion of environmentally conscious design, and strive for the conservation and effective use of natural resources.
- D.Conservation of biodiversity: We acknowledge that the conservation of biodiversity is a responsibility we have to the next generation and endeavor not to participate in activities that threaten sustainability.
3.Promotion of environmental conservation activities
We shall further promote the development and provision of environmentally friendly products and services that reduce the environmental impact of all our business activities.

October 26, 2026
Chief EMS Officer, Kowa Group

●Environmental Management Structure/System（EMS）

While taking into account conditions of Kowa Group (both external and internal issues) and stakeholders’ needs and expectations, we have implemented an ISO14001:2015-based EMS with the aim of achieving “intended results” including environmental performance improvement.
In order to ensure proper maintenance, continuous improvement and effectiveness, internal audits for the environment led by EMS Office are carried out periodically.

●Environmental Education

In Kowa Group, awareness training is provided once a year for every director and employee as a general rule. The training aims to raise awareness about the following matters:

・The environmental policy, procedure to comply with the policy and importance to conform to the requirements of EMS
・Significant environmental aspects associated with his/her own business activities, related environmental impacts occurring in daily business operations (apparent environmental impacts) or environmental impacts that may occur (potential environmental impacts) and advantages on the environment offered by operation improvement of each worker
・Role and responsibility to achieve conformance to the requirements of EMS
・Environmental problems caused by noncompliance to the determined procedure

●Climate Change Initiatives

Recognizing the importance of addressing climate change, Kowa Company, Ltd. is working to reduce its environmental impact with the aim of achieving carbon neutrality by 2050. Going forward, we will continue to balance business growth with environmental considerations and contribute to the realization of a sustainable society.

Greenhouse Gas (GHG) Emissions
［Kowa Company, Ltd.］

			（Unit：t-CO₂）
	FY2023	FY2024	FY2025
Scope 1	10,379	10,894	11,151
Scope 2	21,578	23,813	25,046
Total	31,957	34,707	36,197

Scope1…Direct emissions from fuel use
Including emissions from vehicles for business use.

（FY2023：3,062t-CO₂ / FY2024：3,590t-CO₂ / FY2025：3,579t-CO₂）

Scope2…Indirect emissions from electricity use
Emission factors (adjusted emission factors) for each electric power provider are used.

●Promoting Resource Recycling

At Kowa Group, in accordance with the Environmental Policy of Kowa Group, we are committed to promoting resource recycling at every stage of our business activities, thereby contributing to the realization of a recycling-oriented society.
Specifically, for some over-the-counter medicines, we have adopted containers made from a plastic alternative material with a high calcium carbonate content as a means of reducing the use of petroleum-derived raw materials.
Going forward, we will continue to optimize resource use across the entire product life cycle, contributing to the reduction of our environmental impact and the realization of a sustainable society.

●Waste Management・Recycling Promotion

In addition to the recycling activities conducted in Kowa Group, we pay recycling fees as a specified business operator in accordance with the Containers and Packaging Recycling System in Japan.
For more details of the system, refer to the website of the Japan Containers and Packaging Recycling Association.
The Japan Containers and Packaging Recycling Association

●Approach to Biodiversity

Kowa Group is promoting sustainable business activities and places high importance on the biodiversity as a criterion of sustainability.

●Collaboration with Outside Initiatives

Kowa Company, Ltd. has expressed its support for Keidanren Initiative for Biodiversity Conservation.

※Keidanren Initiative for Biodiversity Conservation Initiative in which the logos and “activity policies and actual cases” of companies and organizations which adopt and take the initiative to achieve the plural items among 7 items of, and/or agree with the whole idea and purpose in the “Declaration of Biodiversity by Keidanren and Action Policy (Revised Edition)” are posted in the booklets and website of Keidanren, so that the conservation activities and the “faces” of the companies and organizations taking the initiative are disseminated domestically and internationally.

Keidanren Initiative for Biodiversity Conservation

●Commitment to Environmental Conservation

As part of our commitment to environmental conservation, Kowabo Company, Ltd., a member of the Kowa Group, obtained FSC® certification on September 16, 2021.
The use of FSC-labeled packaging is a way for our customers to show their contribution to forest protection.

Environment