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 improve corporate value over the medium to long term.

Santen established a Sustainability Committee, chaired by the CEO and composed of executive officers from related divisions. The committee meets at least twice a year, deliberating 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.

The Sustainability Committee is also responsible for specific sustainability initiatives and deliberations on important related matters.

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.

We appoint a Global Head of Sustainability to oversee company-wide sustainability activities.

Santen identifies and engages with materialities.

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 in December 2019.

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.

Looking ahead to 2030 and beyond, we examined the relationship between "Ophthalmology," "Wellness," and "Inclusion," our long-term STRATEGY to address social issues related to people' eye health, and the issues on the above ESG axis (social issues).

We confirmed the validity of the identification process and the selected ESG materialities through not only discussion within in-house meeting including management but also dialogue with outside stakeholders such as experts and investors. Based on the feedback we received at this stage, we have compiled the table into a form that captures strategic issues and ESG issues from multiple perspectives using triangles, rather than a general two-axis table.

Through discussions with the Directors, we identified three STRATEGIES and four ESG materialities as Santen's Materiality and disclosed in 2020. We plan to periodically review the materialities in light of the progress of our initiatives and changes in the social environment.

In May 2021, in conjunction with the formulation of the Medium-Term Management Plan (MTP2025), targets were also set for key ESG materiality items, which were disclosed after deliberation by the Board of Directors. In addition, more detailed quantitative targets were set in July 2022.

In March 2023, we reviewed our 13 materialities. The Board of Directors identified the two most important materialities at this stage, based on discussions with external experts, evaluation criteria used by ESG evaluation organizations, and discussion with internal departments such as risk and strategy. The Board reassessed and re-prioritized each materiality from the perspectives of the Company* and society.

We assessed the challenges we face currently based on the assumptions of our new medium-term management plan, revised in April 2023. We identified the Market Penetration of Products with Social Significance and Human Resource Development and Promotion as the most important issues having the greatest potential impact on medium- to long-term profits.

The cornerstone of our growth strategy and the very reason for our existence as a company is to respond to unmet needs through product and service innovations in the field of ophthalmology, contributing to patients through the pursuit of commercial excellence. We strive to achieve wider market adoption of our valuable products based on the strategies outlined in our new medium-term management plan.

• The impact on profits could be significant if we fall behind competitors in either of the following areas and are unable to gain market share due to a decline in competitiveness in relevant markets.
  • Addressing the needs of patients faced with issues relating to inadequate early detection, diagnosis, or adherence to treatment.
  • In the medium- to long-term, market penetration activities for patients who do not have access to medical care due to inadequate healthcare systems in developing countries, etc.
• Drastic changes in the market environment due to government policies, such as not including the Company’s mainstay products in the volume-based purchasing list in China and other countries, could have a major impact.

Reduce social and economic opportunity losses around the world arising from eye diseases and eye trouble. Minimize economic losses due to vision impairment—estimated at US$410.7 billion(*1) annually—to the greatest extent possible

Our most important assets are people who understand our CORE PRINCIPLE and strategy, and who aim to achieve the Happiest Life for every individual, through the Best Vision Experience. It is essential that we educate, train, and promote such people to responsible positions.

We consider diversity as we systematically develop and promote employees who are people- and patient-centered, who contribute to the sustainable growth of the Company on a global basis, and who are ready to rise to the most appropriate positions at the right time and place.

Contribute to society through human resources mobility

For each materiality, we have set KPIs toward FY2025, the final year of the new medium-term management plan, and disclosed progress.