Sustainability at Santen
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.
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 improve corporate value over the medium to long term.
Sustainability Promotion System
Santen holds a Sustainability Committee, chaired by the CEO and composed of executive officers from related divisions. The Global Head of Sustainability (executive officer) oversees company-wide sustainability activities.
The committee meets at least twice a year, discussing and determining Group-wide policies and targets for sustainability promotion activities. These targets are based on the Core Principle, sustainability policy, Group strategies, and social issues that include human rights, labor, environment, and anti-corruption.
We communicate decisions and other information through the executive management of each department. Matters related to Group management strategies are proposed to the Executive Committee for approval, and important matters are referred to the Board of Directors.
Santen's Materiality
Santen identifies and engages with materialities.
| Materiality ( Most Important Materiality) | Definition |
|---|---|
| Generating Products and Services Contributing to Eye Health | Provide solutions to unmet needs, including rare diseases, through product development and service creation |
| Ensuring Product Quality and Stable Supply | Ensure the continuous supply of products with guaranteed quality and safety in the necessary quantities in a timely manner and establish a system for emergencies |
| Penetration of Products and Market Creation | Become a trusted partner and maximize the value provided to patients and customers, contributing to the realization of optimal healthcare, including patient access |
| Enhancing the Value of Working at Santen and Strengthening People/Organization | Promote the philosophy framework that Santen contributes to ophthalmic healthcare and maximize the capabilities of people and organizations that can put it into practice |
| Business Operations with High Ethical Standards | In all aspects of our business, we conduct corporate activities based on a high level of ethics that goes beyond mere compliance with laws and regulations |
| Transparent Disclosure of Information | With high level of transparency, we disclose the information that stakeholders need in a timely and appropriate manner |
| Promoting DE&I (*) | Enhance creativity and promote value creation through mutual respect among diverse talents |
| Respect for Human Rights | Understand human rights issues and conduct activities that respect human rights throughout the entire value chain |
| Sustainable Procurement | Reduce procurement risks through sustainable sourcing and appropriate supplier management |
| Ensuring Information Security | The domain of protecting company’s valuable assets and data from unauthorized access, disclosure, alteration, and destruction and ensuring the confidentiality, integrity, and availability of information |
| Promoting Digital Transformation | Contribute to operational efficiency, business growth, and opportunity creation through the utilization of digital technology |
| Measures against Climate Change | Implement climate change mitigation and adaptation measures for business continuity, and reduce energy consumption and greenhouse gas emissions |
| Environmental Load Reduction | Minimize environmental impact, including resource use, pollution, and effects on biodiversity, across all business activities |
- Diversity Equity & Inclusion
Process for Identifying Materiality
May 2025, in terms of formulating the Medium-Term Management Plan, we reviewed our materiality.
Step 1: Extraction of Issues and Risk/Opportunity Analysis
Broadly list social issues and, in addition to company-wide risk items, conduct risk and opportunity analysis for each relevant department
Step 2: Organize and Integrate Items, Define as Materiality
Narrow down to 13 items based on the direction of the Medium-Term Management Plan and various guidelines
Step 3: Evaluation of Financial Impact
Estimate the financial impact based on the degree of impact on profits and frequency of occurrence and evaluate the impact
Step 4: Identification of Most Important Materiality
Identify the four items with the greatest financial impact as the most important materiality
Step 5: Dialogue with External Stakeholders and Experts
Evaluate the validity though dialogue with external stakeholders and experts
Step 6: Setting Strategies, Indicators, and Goals
Formulate strategies, indicators, and goals to address risks and opportunities, approved by the Board of Directors
Strategies for Most Important Materialities
Generating Products and Services Contributing to Eye Health
We plan to provide solutions to unmet needs, including rare diseases, through product development and service creation.
Risk Scenario
- Exhaustion of the research development pipeline 【Mid-term/Long-term】
- Increasing complexity of research development and intensified competition, resulting in a decline in the generation of new products【Short-term/Mid-term/Long-term】
Opportunity Scenario
- Identification of unmet needs and creation of unique and valuable therapeutic solutions 【Mid-term/Long-term】
- Promotion of joint research, development, and ecosystem 【Short-term/Mid-term/Long-term】
Countermeasures
- Identification of therapeutic solutions in the field of ophthalmic diseases where strengths can be leveraged
- Active evaluation and introduction of therapeutic candidate compounds, advancement of collaborative research and development, utilization of ecosystems, and investment in research and development of new modalities
- Development of ophthalmic formulations and application in the field of ophthalmic diseases that are unattainable by other competitors
Impact
- Contributing to the treatment of patients in the field of eye diseases where there were no therapeutic drugs until now
- Contributing to patient care by creating products that address unmet needs of existing products (e.g., reducing the burden of eye drop administration)
- Continuing and developing business with partner companies
Ensuring Product Quality and Stable Supply
We will ensure the continuous supply of products that meet quality and safety standards in the required quantities and in a timely manner, while also establishing a system to respond to emergencies.
Risk Scenario
- Decreasing supply capacity and delayed recovery during natural disasters, etc. 【Short-term/Mid-term/Long-term】
- Delays in product supply due to the burden of complying with increasingly advanced GMP(*) standards and other regulations【Short-term/Mid-term/Long-term】
- Increased volatility, uncertainty, complexity, and ambiguity (VUCA) in the market, leading to higher difficulty in production capacity and supply planning【Short-term/Mid-term】
- Abbreviation of “Good Manufacturing Practice.” Standards for manufacturing and quality control of pharmaceuticals and quasi-drugs.
Opportunity
- Establishing a global product supply network that is resilient to diverse environmental changes, including regulatory aspects 【Mid-term/Long-term】
Countermeasures
- Optimization of production volume balance between sites, appropriate inventory level management, and advance preparation of alternative production sites for each product
- Continuous improvement of quality systems
- Strategic collaboration with contract manufacturing organizations
- Optimization of the production and supply network, including in-house production and contract manufacturing
Impact
- Ensuring the stable supply of high-quality products that comply with regulations, thereby providing patients with continuous treatment options and enhancing customer trust in Santen
- Maintaining production and supply capabilities resilient to environmental changes
Penetration of Products and Market Creation
We aim to become a trusted partner and maximize the value provided to patients and customers, contributing to the realization of optimal healthcare, including patient access.
Risk Scenario
- Intensified price competition for long-listed products due to drug price suppression and the promotion of generic drug use【Short-term/Mid-term/Long-term】
- Excessive dependence on sales revenue from the Japanese market, which is experiencing a slowdown in growth 【Short-term/Mid-term】
Opportunity
- Expansion of the global ophthalmology market 【Mid-term/Long-term】
- Exploration of potential markets driven by unmet needs in ophthalmology 【Short-term/Mid-term】
Countermeasures
- Enhancing organizational capabilities to disseminate correct treatment concepts and make appropriate treatment proposals, thereby maximizing and maintaining product value
- Strengthening presence in EMEA(*), Asia, and China
- Identifying unmet treatment needs and exploring areas that enable the provision of new value
- Europe, the Middle East and Africa
Impact
- Providing optimal ophthalmic care to a greater number of patients
- Alleviating eye-related concerns and anxieties by offering new treatment options
Enhancing the Value of Working at Santen and Strengthening People/Organization
We will promote the Santen’s philosophy framework for contributing to ophthalmic care and maximize the capabilities of people and organization capacity to put this philosophy into practice.
Risk Scenario
- Cost pressures and difficulties in securing talent due to rising global labor costs 【Short-term/Mid-term/Long-term】
- Decline in organization performance due to lack of flexible systems and structures 【Short-term/Mid-term】
- Risk of talent attrition and loss of acquisition opportunities due to the inability to clarify the value of working at Santen amidst increasing diversity in values and higher talent mobility 【Mid-term/Long-term】
Opportunity
- Enhancing individual growth rates and organization productivity by providing numerous experiences and challenges through flexible systems and structures 【Short-term/Mid-term/Long-term】
- Clarifying the value of working within the Santen to attract and retain talented individuals who resonate with that value【Short-term/Mid-term/Long-term】
Countermeasures
- Implementation and promotion of company-wide cross-functional projects and strategic internal dual programs
- Enhancing employee performance and engagement through the dissemination of Santen’s Core Principle, Guiding Principle, and Values
- In addition to activities promoting the Core Principle, Guiding Principle, and Values, communicating the significance of working at Santen, to the outside world through the expansion of systems that accommodate diverse working styles and fair evaluation and compensation systems
Impact
- Achieving high performance through an organization and employees who embody the Core Principle, Guiding Principle, and Values of Santen, thereby strengthening competitiveness, further developing the business, and providing new value to society.
Indicators and Targets
We are setting indicators and targets for each materiality and actively promoting our initiatives.
| Materiality ( Most Important Materiality) | Indicators and Targets |
|---|---|
| Generating Products and Services Contributing to Eye Health |
|
| Ensuring Product Quality and Stable Supply |
|
| Penetration of Products and Market Creation |
|
| Enhancing the Value of Working at Santen and Strengthening People/Organization |
|
| Business Operations with High Ethical Standards |
|
| Transparent Disclosure of Information |
|
| Promoting DE&I |
|
| Respect for Human Rights |
|
| Sustainable Procurement |
|
| Ensuring Information Security |
|
| Promoting Digital Transformation |
|
| Measures against Climate Change |
|
| Environmental Load Reduction |
|
- Prescription pharmaceuticals
- SLA: “Service Level Agreement”, OLA: “Operational Level Agreement”.
Integration of non-financial metrics into the compensation
Some non-financial indicators are incorporated into the compensation for executives and employees. For example, the following goals have been set for FY2025 and incorporated into the compensation.
Strategic objectives pertaining to the Performance Share Unit System for executives
- Realization of a market-creating-type growth model in the areas of myopia and blepharoptosis
- Establishment of a leadership position in overseas market
- Innovation towards a high- value Rx portfolio
- Sustainable optimization of stable supply and costs
- Enhancement of the value of working at Santen and strengthening the capabilities of people and the organization
Themes of Non-Financial Multiplier targets for employees
- Further promote our new Guiding Principle and Values and improve engagement among employees through participation in People Pulse Surveys (*)
- Intensify employees’ understanding of online security by conducting information security and e-mail security training courses
- Strengthen global risk management, increase employees’ compliance awareness, and improve the company’s self-regulation and transparency by achieving high attendance rates in compliance-related e-learning programs
- People Pulse Surveys: Questionnaires that are repeated over a short period of time to ascertain the status of employees
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