Sustainability of TOHO HOLDINGS
Based on the Mission Statement of “We shall live in harmony with society and our customers; together, we shall create new values through the provision of original service; and we shall contribute to the medical care and well-being of people around the world.,” we will work to solve social issues through our business and contribute to the realization of a sustainable society as a business group engaged in the fields of medical, health and nursing care.
Governance
We recognize sustainability action as one of our key managerial priorities. For this action, we have a corporate governance system in place with the Sustainability Promotion Committee playing a central role, subject to supervision by the Board of Directors.
＜System of Supervision by the Board of Directors＞
The Board of Directors monitors the Company’s engagement and target attainment performance with regard to sustainability and climate-related risks and opportunities, based on reporting from the Sustainability Promotion Committee. It also supervises new measures and targets.
Important matters related to human capital are subject to approval by the Board of Directors. These include investments concerning human capital, appointments and dismissals of officials and those of a higher position at key divisions and departments, and decisions on and changes to important standards for working conditions. Appointments and dismissals of other employees and personnel management, as well as various measures, including those to advance the administration of health management, are also reported to and supervised by the Board of Directors.
＜Sustainability Promotion Committee＞
The Sustainability Promotion Committee is comprised of members from the sales, logistics, pharmaceutical affairs and administration functions. It identifies materialities (important issues), including matters related to climate change, and deliberates on our sustainability strategy, which involves, among other things, our actions for the Environment (E), Social (S), Governance (G), and digital transformation (DX). The results are reported to the Board of Directors.
Chaired by the Senior Executive Managing Director and COO, the Sustainability Promotion Committee conducts action planning, target setting, progress control, and effectiveness assessment based on the Sustainability Policy. Every year, the Committee assesses the impacts of climate change on our business, devises measures to cope with them, and sets relevant targets, all in accordance with a policy aimed at minimizing the identified risks and seizing on the opportunities involved.
The Committee also deliberates on target attainment performance and reports the results to the Board of Directors, which oversees it.
Sustainability promotion system
The Group’s sustainability governance system is shown below:
◆Details of discussions and deliberations by the Sustainability Promotion Committee in fiscal 2023
During the fiscal year under review, the Sustainability Promotion Committee met twice to discuss and deliberate on group-wide sustainability policies and important issues, and reported the results to the Board of Directors.
| Date of implementation | Discussions and deliberations |
|---|---|
| June 2023 | ・Identified and organized issues in our sustainability disclosure ・Discussed issues to be addressed in the future to address climate change ・Decided to support TCFD recommendations |
| October 2023 | ・Set CO2 emission reduction targets (Scope1, Scope2) ・Formulated human rights policies ・Deliberated initiatives to promote diversity |
＜Divisions and Departments Responsible for Climate Action＞
The Corporate Communications and Investor Relations Division serves as the secretariat for the Sustainability Promotion Committee. It also serves as a liaison among the divisions and departments concerned and promotes company-wide climate action. Additionally, the Division thrashes out our sustainability strategy, which covers, among other things, matters related to climate change, and advises the Sustainability Promotion Committee.
＜Divisions and Departments Responsible for Human Capital Affairs＞
The General Affairs and Human Resources Division and the Corporate Communications and Investor Relations Division design human capital measures and lead their implementation, and they advise the representative directors and the Sustainability Promotion Committee.
Risk Management
The Group has the Risk Management Basic Rules in place to cope with any managerial risks – and situations that may developed into them – and forestall such risks. The Risk Management Basic Rules and the related manual are regularly reviewed for improvement by the Group Compliance and Risk Management Committee. The Committee, chaired by the Representative Director and CEO, regularly engages in the early detection and assessment of risks, the improvement of the system to prevent risks from emerging, and the development of measures to be taken when a risk emerges.
Risks related to sustainability and climate change are under the responsibility of the Sustainability Promotion Committee, which identifies and assesses business risks and revenue opportunities arising from sustainability issues. The Committee reports the results to the Board of Directors in cooperation with the Group Compliance and Risk Management Committee and the Group Disaster Countermeasures Committee.
