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 with a progressive spirit to cope with changes of the times and a steady manufacturing spirit. Amid the growing uncertainty in the business environment due to global environmental changes, we are working, in the field of “Health” to contribute to well-being that supports a longer healthy life expectancy, and in the field of “Environment” to reduce environmental impacts by means of effective use of renewable energy. Through these activities, we aim to realize “Planetary Health” in which the health of all ecosystems and that of the Earth coexist in harmony.
Furthermore, on the basis of the respect for human rights, we will not only promote the development of an organization where every employee can grow and work with vigor and enthusiasm but also strive to establish a working environment where all employees can maximize their potential and work actively over a long period without undue worries.
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
<Material Issues Related to Sustainability>Our company group has selected “Respecting Human Rights,” “Promoting Health,” “Environment” and “Social Contribution” as four material issues.
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
Our company group launched the Women’s Empowerment Project in September 2023 to promote the activities aimed at fostering awareness for the next generation and creating a work environment in which women can work longer and more comfortably. In cooperation with Kowa Workers Union, the project holds regular luncheon gatherings primarily for female union members to gather feedback from employees, identify issues related to women’s working styles, collect relevant information, and build a cross-divisional network.
Furthermore, the new manager training held in September 2025 provided a session to experience menstrual cramps, and a compliance training designed for all employees including group company employees was held in the following month to promote an understanding of women’s peculiar health issues.
In November of the same year, a menstrual leave was renamed to “L-leave,” so as to develop an environment where female employees can take the leave with less hesitation.
In addition, to help female employees image their future careers, we had interviews with female managers and shared some cases considered as role models.
We will continue to strive to develop workplaces where not only women but also all employees can work more actively, and 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.
Further, in addition to the women’s empowerment, initiatives for maintenance and promotion of women’s health have been enhanced.
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 environmental pollution through promotion of initiatives that to contribute to sustainable development of the society based on the “Environmental Policy of Kowa Group.”
Furthermore, to minimize the impacts of our group’s business on the environment and promote initiatives through our business, on the basis of the understanding of importance of biodiversity conservation, we have expressed our support for “Keidanren Initiative for Biodiversity Conservation.”
Climate Change Countermeasures
Our company group is promoting initiatives toward achieving carbon neutrality in 2050. With the recognition that preserving the environment is an important societal responsibility, we have continued to review and improve the initiatives under the environmental management system. As one of the key measures, we have been reducing greenhouse gas emissions through promotion of energy conservation and use of more renewable energy.
We will continue the approach to the reduction and improve the measures to tackle climate change, thereby contributing to realization of a sustainable society.
Contributing to Society Our company group aims to contribute to revitalization of the regional society and realization of healthy and affluent lives of people in the community through support for sports activities and other various community-based activities and through social contribution activities such as disaster relief, and also works for long-term development of the regional society.
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※ (FY2025) |
|---|---|---|
| Female manager ratio | 5.0% or more (FY2027) |
3.6% |
| The average years of service for female career-track employees |
8.8 years or more (FY2027) |
8.7 years |
※Figures of Kowa Company, Ltd. are presented.
●Climate Change Countermeasures
Our company group recognizes further reduction of greenhouse gas emissions as an issue to be addressed, focuses on energy conservation activities through renewing/upgrading equipment and improving operation of the equipment at every site, and works to improve energy efficiency and reduce emissions.
In view of expected changes in business environment, the departments promoting sustainability and the affiliated companies will collaborate to continue activities for addressing decarbonization in energy.

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