Approach and Initiatives for Sustainability
At our company group, the management’s vision is to promote “Health and Environment”. Our company group strives to create a new unconventional value unbound by conventional thinking with a progressive spirit to always cope with changes of the times and a steady manufacturing spirit. Amid the growth of the world’s population and expansion of economies, we aim to create a comfortable and affluent society through our business activities and promote management for realizing a sustainable society to be passed on to the future generation.
                    Furthermore, while always respecting human rights, we shall build an organization where the employees can grow and work with a good quality of life and shall establish a working environment that enables all employees to play active roles and have a long career in Kowa Group.
Governance
While maintaining and enhancing internal control, our company group has established the Kowa Group Internal Control Committee to promote company-wide approach to important issues related to sustainability. The committee is chaired by the Internal Control Officer who is also the representative director. The committee is held semi-annually as a rule to set policies and goals for sustainability, formulate action programs and identify risks and opportunities.
                        The Board of Directors reports and deliberates the important matters discussed at the committee, verifies the evaluation results and management status of the risks and opportunities on sustainability issues, and develops a structure for instructing improvements as necessary.
                        Also, we have been improving our corporate value through enhancement of compliance and risk management.
Business Strategies
Our company group has selected “Respecting Human Rights”, “Promoting Health”, “Environment” and “Social Contribution” as four important issues. In a rapidly changing business environment, we will actively contribute to creating a more humane affluent society and building a sustainable society through corporate activities while flexibly responding to changes.
Respecting Human Rights While always respecting human rights, as stipulated in Kowa Group Charter of Corporate Behavior and Kowa Group Human Rights Policy, our company group shall establish an organization where employees can improve themselves and work with good quality of life. We shall also prevent forced labor and discrimination throughout the entire supply chain. These efforts have been informed to all employees through brochures and the internal intranet as well as utilization of e-Learning.
Supplier Code of Conduct・Declaration of Partnership Building
Our company group together with our suppliers aims to contribute to the resolution of social issues by promoting initiatives such as legal compliance, respect for human rights, and environmental conservation in order to realize a sustainable and stable supply chain. To this end, we will strive to deepen our understanding through two-way communication with our suppliers while at the same time requesting that our suppliers proactively implement the "Kowa Group Supplier Code of Conduct".
            Furthermore, we have announced the “Declaration of Partnership Building” in February 2023, with the aim of building new partnerships by enhancing cooperation, co-existence and co-prosperity with all suppliers in our supply chain and business operators striving to create values.
●Human Resource Development Policy
Enhancing the stratified education and training, our company group is promoting the development of human resources who can respond to changes in business environments and create changes by themselves.
            We also respect individual personality and provide various opportunities for career choices, including support for self-development through introduction of a qualification allowance system, implementation of overseas language training and fulfillment of a work location selection system.
●Internal Environment Improvement Policy
Our company group strives to develop a workplace where all employees can play active roles, maintain a good balance between work and life, and continue working for many years based on the awareness of the necessity to ensure diversity in human resources. Regularly conducting organizational surveys, we review and revise the systems for improving analysis results in order to enhance engagement. By introducing an hourly paid leave system and a staggered working hours system, we are creating a more pleasant work environment.
            Additionally, we aim to extend the average years of service for female career-track employees and increase the proportion of female manager ratio by fostering an organizational culture that encourages female employees to feel fulfilled in their work and continuously build their careers.
Promoting Women’s Empowerment
In order to continuously promote women’s empowerment from different perspectives, we launched the Women’s Empowerment Project in September 2023, centering around female employees. Through the project, we have started discussions and information gathering to foster awareness leading to the next generation, promote the activities aimed at realizing a more pleasant work environment, and support women’s career independence. We have been working together with Kowa Workers Union to collect needs for women’s work styles, understand the issues and build a cross-divisional network. In the future, we will promote activities for creating workplaces where women can work more actively, and address women’s peculiar health issues to review and improve the related systems as required.
Promoting Health
                        Through promoting Japanese-style self-care, including new drug development, our company group is contributing to maintaining our customers’ health and improving medical care.
We have also declared promotion of “Health and Productivity Management” for achieving well-being of our employees and their families, and we will continue to strive for further improvement in health-related issues.
Health and Productivity Management
Our company group has introduced health management programs such as our company’s original health control application “KOWA MILEAGE CLUB” and “Smoking Cessation Support Program” helpful for forming healthy lifestyle habits serving as a foundation of health throughout the life to support visualization of health and maintenance and promotion of health for our company group employees.
Health and Productivity Management Meeting
At the biannual Health and Productivity Management Meeting, the Representative Director serves as the Chief Health Officer and a dedicated department, acting as a secretariat, recognizes the issues and discusses their measures as to health management promoted by our company group. In cooperation with Kowa Health Insurance Society, Kowa Workers Union, occupational physicians, and public health nurses, we are promoting the health management of the Kowa Group.
Environmental Measures
                        Through our business activities, our company group is taking climate change countermeasures as well as actions to prevent various types of pollution through promotion of initiatives that to contribute to sustainable development of the society based on the “Environmental Policy of Kowa Group”.
Furthermore, to show our commitment to reduce the impacts of our business activities and to raise awareness of contribution to biological diversity conservation, we have expressed our support for “Keidanren (Japan Business Federation) Initiative for Biodiversity Conservation”.
Climate Change Countermeasures
In order to realize carbon neutrality in 2050, we intend to contribute to reducing environmental impacts due to climate change. The business promoted by our company group is greatly associated with the global environment. It is our definite responsibility to make efforts to preserve the environment as our corporate social mission. Through regular internal environmental audits, we have improved our continuous approach to environmental issues, addressing energy conservation, renewable energy, waste reduction and recycling. We will steadily reduce greenhouse gas emissions in our business activities and make efforts to build a sustainable society.
Contributing to Society Our company group aims to contribute to the realization of a healthy and prosperous lifestyle for people through regional revitalization via support for various sports activities and emergency and disaster support.
Risk Management
In our company group, the risks related to sustainability in business activities are identified by the Kowa Group Internal Control Committee. Based on the company's risk treatment policies, as determined by the committee, each division or department implements risk management, and the internal control manager, who is the representative director, periodically reports the operational status to the board of directors.
                        The auditor makes sure that risk monitoring is conducted appropriately, and that the group structure is functioning properly.
Metrics and Targets
●Activities of Internal Environment Improvement
| Metrics | Targets | Results※ (FY2024)  | 
								
|---|---|---|
| Female manager ratio | 5.0% or more (FY2027)  | 
									3.1% | 
| The average years of service for female career-track employees  | 
									8.8 years or more (FY2027)  | 
									8.0 years | 
※Figures of Kowa Company, Ltd. are presented.
●Climate Change Countermeasures
Recognizing the risks of climate change, we have been making efforts to reduce greenhouse gas (GHG) emissions 46% or more by FY2030, compared to FY2013, and achieve carbon neutrality by FY2050 in order to reduce environmental impacts. The departments promoting sustainability and the affiliated companies engaged in environment related business have been collaborating to address decarbonization.

General Trading Business Unit
Lifestyle Business Unit
Pharmaceutical Business Unit
Hospitality Business Unit