Sustainability Management Structure

The Otsuka Group Sustainability Promotion Committee

The Otsuka Group Sustainability Promotion Committee was established in 2018 and is chaired by the director in charge of sustainability promotion (Executive Deputy President and Representative Director of Otsuka Holdings).

The committee, with the sustainability promotion department of Otsuka Holdings as its secretariat, is comprised of department heads and persons in charge from related departments such as corporate planning, research, production, environment, human resources, compliance, public relations, investor relations, and general affairs.

It serves as a forum to discuss and decide on the direction and plan of sustainability management, report on the progress of activities, reflect expectations from society into our activities, and hold lectures to further promote our initiatives.

Task Forces and Committees

We have established task forces and committees for each theme such as environment, procurement, Customer responsibility, human rights, and employee engagement, to promote sustainability initiatives of the Otsuka group as a whole by formulating and executing specific measures.
These activities are shared with the annual meeting in Sustainability Promotion Committee for promoting our sustainable management.

Name	Contents	Members	Frequency of Meeting
Otsuka Group Sustainability Promotion Committee	Plannnig, discussion and decision of sustainability management Progress reports on activities Promotion of internal awareness and activities through communication of social requirements	Executive Deputy President and Representative Director of Otsuka Holdings Members of Otsuka group sustainability promotion committee	Annually
Otsuka Holdings Environmental Committee	Review and decision on environmental strategy Approval of environmental goals and plans	Executive Deputy President and Representative Director of Otsuka Holdings Directors and Executive Officers responsible for environmental management at operating companies of the Otsuka group	Semi-annually
Otsuka Group Global Environmental Council	Formulation of environmental goals and plans Progress reports on activities	Environmental management officers at operating companies of the Otsuka group and Otsuka Holdings	Monthly
Sustainable Procurement Project	Promotion of sustainable procurement in collaboration with business partners Stable procurement: Build a robust, stable procurement system Responsible procurement: Ethical and responsible procurement activities	Executive Deputy President and Representative Director of Otsuka Holdings Persons in charge of procurement and relevant departments at operating companies of the Otsuka group and Otsuka Holdings	Committiee: Tri-annually Working Team: held as necessary
Otsuka Group Human Rights Task Force	Planning and promotion of human rights education and awareness activities, building a group structure, and promoting activities Implementation of human rights due diligence Formulation and revisions to the Otsuka Group Human Rights Policy	Compliance, human resource, and sustainability promotion department of Otsuka Holdings	Held as necessary
Employee Engagement Task Force	Establishment of the positioning and evaluation methods for employee engagement Strengthening of collaboration through organizational analysis and reform	Executive Deputy President and Representative Director of Otsuka Holdings Persons in charge of human resources at operating companies of the Otsuka group and Otsuka Holdings	Committiee: Tri-annually Working Team: held as necessary
Otsuka Group Customer Responsibility Liaison Meeting	Sharing the activities of customer responsibility at each operating company for promoting consumer-oriented management Discussion of measures and promotion of initiatives for the qualitative improvement in customer responsibility Holding training sessions with external experts, e.g., lawyers	Executive Deputy President and Representative Director of Otsuka Holdings Persons in charge of customer responsibility at operating companies of the Otsuka group	Meeting: Semi-annually Training: Bi-monthly (every two months)
Corporate Sustainability Reporting Directive (CSRD) Project (EU)	Conduct a review of the roadmap for the disclosure of sustainability information in the applicable companies	Executive Deputy President and Representative Director, Executive director, CFO of Otsuka Holdings Compliance, finance, human resource, and sustainability promotion department of Otsuka Holdings Related departments of each European subsidiary subject to CSRD	Committiee: Quarterly Working Team: held as necessary

Agenda of the Sustainability Promotion Committee

The annual meeting is attended by committee members, chaired by the director in charge of sustainability promotion.

FY2024

On the theme of “Business and Human Rights”, we held discussions and shared current information about the human rights that companies should respect, not only within our own company but also involving our supply chain as a whole, including employees of our business partners, customers, and residents of the areas where we conduct business activities.
In addition, we invited external experts and provided an opportunity to learn about the respect for human rights that is required of companies, based on actual cases related to corporate risks of human rights.

FY2023

We shared the sustainability initiatives collaborated across the group companies and various areas such as sustainable procurement and compliance.
In addition, the committee resolved on the materiality to be addressed for the enhancement of sustainability management in line with the 4th medium-term management plan starting in 2024.

FY2022

Otsuka Pharmaceutical's initiatives towards eradicating tuberculosis were reported on, representing one of the endeavors related to "access to healthcare" within the Otsuka group. We also invited external experts to deepen our knowledge about "human capital management".

FY2021

Representatives who are in charge of human resources, compliance, and sustainability promotion held presentations. They discussed the group-wide initiatives on employee diversity & inclusion, human rights, procurement, customer-oriented management, and compliance.
Regarding the environment, we focused on climate change and the circular economy as responses to environmental issues in sustainability management, and invited external experts for their insights.

Sustainability Management