Materiality and Sustainability Policy

Based on Santen's CORE PRINCIPLE "Tenki ni sanyo suru," Santen not only contributes to the sustainable development of society but also aims to achieve its own sustainable growth.

Santen's Materiality

Santen's Key Management Issues (Materiality)

"STRATEGY" and "ESG Materiality" are Santen's key management issues (Materiality).

Keeping Santen's CORE PRINCIPLE "Tenki ni sanyo suru" in mind, Santen's newly formulated ideal world is called "WORLD VISION," the ideal world that Santen aims for, namely, "Happiness with Vision," which represents Santen's aim to contribute to the Happiest Life for every individual, through the Best Vision Experience. Santen's VISION shows what Santen aspires to be in 2030 and beyond in order to achieve its WORLD VISION. We will "Become A Social Innovator" to orchestrate and mobilize key technologies and players around the world, to deliver happiness through vision. In order to achieve "Santen's VISION" and "GOAL," we will implement "STRATEGY," which consists of "Ophthalmology," "Wellness" and "Inclusion." This WORLD VISION and Santen's VISION have been established from the perspective of Creating Shared Value (CSV), which is a corporate approach to creating both economic and social value by devising solutions to social issues.

Meanwhile, from the perspective of environment, society and governance (ESG), we have identified the following four propositions as ESG materialities: "Maintenance and Enhancement of Trust in Products and Services," "Encouragement of an Organizational Culture that Promotes Value Creation," "Reinforcement of Governance and Prevention of Corruption," and "Conservation of the Global Environment," with the aim of contributing to the sustainable development of society by solving social issues and improving corporate value over the medium to long term. The three STRATEGIES and four ESG materialities are Santen's materiality, namely, Santen's key management issues.

The Sustainable Development Goals (SDGs) adopted by the United Nations member states set 17 goals to be achieved by 2030. By addressing our materiality, we will help achieve Goal 3: "Ensure healthy lives and promote well-being for all at all ages," and other SDGs.

Materiality Identification Process

  • Step 1: List up social issues
    We compiled an extensive list of social issues based on international guidelines, including the 10 principles of the United Nations Global Compact and SDGs, as well as on survey items of sustainability assessment institutions.
  • Step 2: Set priorities for social issues
    We comprehensively evaluated social issues from two standpoints, namely, their importance to society and their importance to our company, and narrowed the issues down to those of high priority.
  • Step 3: Integrate the three items of the long-term vision "Santen 2030" into Materiality
    Looking ahead to 2030 and beyond, we added "Ophthalmology," "Wellness," and "Inclusion," which we created to strategically address social issues related to people's eye health, to Santen's Materiality.
  • Step 4: Confirm the validity
    We confirmed the validity of the formulation process and the selected materialities through not only discussion within in-house meeting including management but also dialogue with outside stakeholders such as experts and investors.
  • Step 5: Identify Materiality
    Through discussions at the Board of Directors, we identified three STRATEGIES and four ESG materialities as Santen's Materiality. We plan to periodically review the materialities in light of the progress of our initiatives and changes in the social environment.

Sustainability Policy

We have established our sustainability policy incorporating the standpoint of ESG into the WORLD VISON and Santen's VISION, formulated from the perspective of CSV. Based on our CORE PRINCIPLE, this policy shows that Santen not only contributes to the sustainable development of society but also aims to achieve its own sustainable growth.

Sustainability Policy

Based on Santen's CORE PRINCIPLE: "Tenki ni sanyo suru," Santen not only contributes to the sustainable development of society but also aims to achieve its own sustainable growth.

ESG Materiality

The four ESG materialities are aimed at contributing to the sustainable development of society and improving Santen's medium to long term corporate value. In order to break down the Materiality into specific activities, we have presented 12 issues for promoting the activities and disclosed the progress of our efforts as needed.

ESG Materiality Issue Main efforts
(Including what we are currently working on and future efforts)
Maintenance and Enhancement of Trust in Products and Services

Assurance of Quality and Safety, and Establishment of an Appropriate Supply System
  • Quality assurance
  • Pharmacovigilance (pharmaceutical safety monitoring)
  • Strengthen medical affairs
  • Stable supply of products
  • Establishment of a product collection system in the event of product recall
  • Measures against counterfeit medicines
Provision of Appropriate Information on Products and Services
  • Centralized management and appropriate provision of safety information
  • Promoting responsible marketing, advertising and sales
  • Compliance with promotion standards for pharmaceuticals and medical devices
  • Promotion of proper use of pharmaceuticals
Evaluation and Management of the Supply Chain
  • Formulation of a supply chain procurement policy
  • Supplier monitoring and management
  • Efforts to resolve social issues throughout the supply chain
  • Assurance of elimination of forced labor and child labor at suppliers and prevention of corruption
Encouragement of an Organizational Culture that Promotes Value Creation


Promotion of Diversity and Inclusion
  • Formulation and implementation of diversity and inclusion policies
  • Providing a place for each individual to demonstrate their abilities without discrimination based on attributes
  • Promotion of success of people with disabilities, including at special subsidiaries
Building a high-value-added and highly productive work environment
  • Improvement of employees' physical and mental health
  • Prevention of long working hours
  • Workplace health and safety activities
  • Prevention of occupational accidents
  • Health and safety risk assessment
  • Third-party certification of health and safety
Human Resource Development
  • Promotion of personnel development based on Santen Leadership Competency (SLC)
  • Promotion of company-wide educational programs to enhance individual abilities
  • Implementation of employee satisfaction/engagement surveys
Reinforcement of Governance and Prevention of Corruption

Corporate Governance
  • Ensuring the independence of the chairman of the board of directors
  • Ensuring the diversity of the board of directors
  • Disclosure of directors/auditors' bios/specialties/remuneration
  • Ensuring independence/effectiveness of compensation committee
  • Disclosure of our tax policy
Compliance
  • Practice of the "Santen Code of Practice"
  • Implementation of compliance education
  • Operation of the "Compliance Consultation & Reporting Desk" and the "outside help line"
  • Anti-corruption (prevention of bribery, corruption, and anticompetitive business practices)
Risk Management
  • Conducting of risk assessment
  • Development of a system to address possible risks and provide training and education
  • Formulation of a Business Continuity Plan (BCP)
  • Strengthening information security measures
Respect for Human Rights
  • Formulation of a human rights policy
  • Implementation of human rights due diligence
Conservation of the Global Environment

Measures against Climate Change
  • Obtainment of agreement by TCFD and approval by SBT
  • Reduction of CO2 emissions
  • Understanding of supply chain CO2 emissions
  • Increased use of renewable energy
  • Identification of climate change risks/opportunities
  • Third-party assurance of CO2 emission and energy consumption data
Reducing our Environmental Impact
  • Reduction of plastic waste
  • Reduction of waste emissions
  • Management of emission of harmful substances
  • Reduction of water usage including recycling and efficiency improvement

CSR Promotion System

The Santen Group has established a CSR Committee, which consists of the Santen President and CEO as Chairman, and corporate officers in charge of the relevant divisions. Based on our CORE PRINCIPLE, the CSR Basic Policy, the group's strategies, and social issues, the CSR Committee sets CSR-related policies and targets for our entire group, and monitors the progress of our CSR activities.

In fiscal 2019, we started to identify materialities and formulate a sustainability policy. In the future, we will promote our efforts based on the Sustainability Policy instead of the CSR Basic Policy.

The CSR Committee sets targets and manages progress for a total of eight activity items: three CSV-related items and five items related to measures to support sustainable growth.

CSR Committee Activity Items

    Activity item Goals for 2020
CSR unique to Santen through business 1 "CSR through business activities"
Increased propagation inside and outside the company
Communication of ideas and cases will be strengthened, leading to improved engagement for employees and customers
2 Common-to-group onboarding
program improvement
Learning what all Santen Group employees should equally understand when joining the company
3 Contribution to society through sports for the visually impaired It is widely established as a model case for social contribution in Japan, and is expanding overseas.
Initiatives that support sustainable growth 4 Thorough implementation of
the Code of Practice/Compliance
Effective compliance training is thoroughly implemented as a group to enable all Santen Group employees to understand and act in accordance with the Santen Code of Practice.
5 CSR promotion including business partners Our company's approach to CSR based on international norms is shared with our business partners, and the business partners' correspondence is confirmed, leading to risk reduction in business continuity and the gaining of trust from stakeholders.
6 Promotion of diversity We promote understanding and disclosure of basic group actualities such as gender and nationality, and the establishment of a diversity policy and group goals, and as a result of group-wide efforts, personnel diversity is increasing.
As a leading company specializing in ophthalmology, we employ people with visual impairments and enable many employees to work together.
7 Promotion of environmental conservation activities
within the group
Activities are promoted and monitored at all major business sites based on the medium-term goals, and the Santen Group as a whole is steadily fulfilling its environmental responsibility.
8 Corporate citizenship based on Santen's Values. A group-wide donation rule is formulated, a system for grasping the situation within the group is established, and corporate citizenship activities based on Santen's Values are carried out in all countries and regions of the Santen Group, and information is also disclosed.