• 2025
  • 2024
  • 2023
  • 2022
  • 2021

Kissei’s Materiality

Kissei Pharmaceutical is committed to realizing a sustainable society and global environment through its business activities, based on our Management Philosophy to “Contribute to society through high-quality, innovative pharmaceutical products” and “Serve society through our employees.”
To realize our Management Philosophy, we identify key issues (materiality) that we should prioritize, taking into account changes in the internal and external environment, as well as our current situation and challenges.

We aim to be a company that is essential to society and grows alongside it by uniting the entire organization to address materiality issues, contributing to people's health, and fulfilling our responsibilities to society and the global environment.

Identifying Material Issues and Setting KPIs

  • STEP1

    Identify social and internal issues, making reference to international guidelines*

  • STEP2

    Have all heads of departments prioritize the issues via an in-Company survey after receiving SDG training

  • STEP3

    Narrow down the number of priority issues through dialogues with external experts regarding the survey results

  • STEP4

    Have the Sustainability Promotion Committee and the Board of Directors identify material issues, set KPIs, and promote activities

  • STEP5

    Formulate medium-term management plans and revise material issues based on changes in the business environment and constructive dialogues with stakeholders

* SDGs, SASB Standards, GRI Standards, Access to Medicine Index.

In our previous mid-term management plan, "PEGASUS," we identified the "promotion of ESG/SDGs" as one of our core strategies. Under this core strategy, towards the realization of a sustainable society, we identified 15 important issues (materiality) that should be prioritized in fiscal year 2021, based on two axes: their relevance to our business and their impact on stakeholders. From the fiscal year 2022 onwards, we have set KPIs for each materiality issue and have been managing the promotion and progress of our initiatives based on these KPIs.
However, the environment surrounding us is changing significantly, and it is necessary to further strengthen the creation of social value through our business activities and our response to social demands such as ESG. Therefore, in conjunction with the formulation of our mid-term management plan "Beyond 80" (fiscal year 2025 to 2029), we conducted a review through constructive dialogue with stakeholders, changes in the social and business environment, and internal surveys. The Sustainability Promotion Committee formulated a new materiality proposal, and after discussions by the Board of Directors, we re-identified eight materiality issues to be newly addressed in May 2025.

Kissei’s 8 Material Issues

  • 1.Creation and development of original products

  • Selection Criteria We have set our management vision as "We aim to be an R&D-oriented pharmaceutical company that contributes to the health of people around the world through innovative pharmaceutical products." With our strength in small molecule drug discovery technology, we are committed to developing game-changing pharmaceuticals that revolutionize existing treatments. Additionally, we are expanding our research and development pipeline through licensing-in opportunities, ensuring a continuous delivery of innovative medicines to healthcare settings. Furthermore, through our healthcare food business, we support health from both the pharmaceutical and nutritional perspectives, contributing to the improvement of quality of life (QOL) for the elderly and patients.
  • 2.Steady supply of high-quality products

  • Selection Criteria It is the responsibility of pharmaceutical companies to consistently supply high-quality medicines to patients in need. We are committed to establishing a GMP system that meets international standards and strengthening our stable supply framework through strategic capital investments. Additionally, we are building a supply chain capable of effectively responding to procurement risks caused by natural disasters and changes in social conditions, ensuring the stable supply of high-quality pharmaceutical products both domestically and internationally.
  • 3.Contribution to patientcentered medical care

  • Selection Criteria By prioritizing the safety of patients, who are the ultimate customers in healthcare, and providing reliable information on safety and efficacy based on scientific evidence with a strong sense of ethics, pharmaceuticals can truly contribute to the improvement of healthcare. In ensuring product safety and conducting clinical trials, we evaluate risks and efficacy appropriately from a high ethical and scientific standpoint, and provide timely and appropriate information.
  • 4.Improved access to medical care

  • Selection Criteria Even today, with the advancement of medical technology, there are many patients who do not have access to adequate treatment. We are committed to addressing unmet medical needs, such as rare diseases and intractable illnesses, and strive to improve access to healthcare through collaboration with overseas partner companies.
  • 5.Cultivate creative talent to execute management strategies

  • Selection Criteria Amidst rapidly changing business environments, for us to embrace new challenges and transform into a truly growth-oriented company, it is essential to respect the diversity of each employee while maximizing their knowledge and abilities, thus enhancing our collective intelligence and strategic execution capabilities. People are the source of competitiveness and value creation, and the success and growth of each individual support the growth of the company. Through the development of creative talent, both our employees and the company can achieve sustainable growth, aiming to create further social value as an R&D-oriented pharmaceutical company.
  • 6.Strengthening governance

  • Selection Criteria Strengthening governance has become essential to respond quickly and accurately to rapidly changing business environments. Establishing a governance system based on compliance enables transparent, fair, swift, and decisive decision-making, we aim to achieve sustainable growth, enhance corporate value, and fulfill our social responsibilities.
  • 7.Promotion of ESG management

  • Selection Criteria In our Code of Conduct, we recognize that addressing environmental issues is a common challenge for humanity and an essential requirement for the survival and activities of a company. Therefore, we are committed to engaging in these efforts voluntarily and proactively. Social challenges related to environmental issues, such as the intensification of natural disasters due to global warming and the marine plastic problem, have become increasingly apparent. As a life-related company with a vision to contribute to the health of people worldwide, we must take the lead in participating in global environmental conservation activities.
  • 8.Coexistence and prosperity with local communities

  • Selection Criteria A company is a social institution, and contributing to the development of local communities and nurturing the next generation is one of its roles. Through our social contribution activities, we aim to contribute to the sustainable development of society. As a corporate citizen, we actively participate in social contribution activities, striving for coexistence and mutual prosperity with local communities.

Our sustainability activities are managed by the Sustainability Promotion Committee, based on initiatives and KPIs determined by the Board of Directors that each department reviews, focusing on our identified materiality issues.

  • Previous Initiatives (Up to Fiscal Year 2024)

  • Material issues related to business activities

    ① Development of innovative products (drugs, foods)
    We contribute to the health and medical care of people around the world by providing ethical drugs and other high-quality, innovative pharmaceutical products developed by the Company or through partnerships.

    Key initiatives KPIs Fiscal 2024 Result (as of March 31, 2025)
    Drug discovery initiatives and promotion of clinical development projects Number of items in the research and development pipeline and progress
    Number of NDAs submitted/ number of NDAs approved
    Domestic development: 6 themes, changes in fiscal year 2024: 1 application, and 1 discontinuation
    Overseas development (out-licensing): 5 themes, changes in fiscal year 2024: 1 new product launch, NDA for 1 theme, and 1 contract termination
    Promotion of licensing activities and overseas development Number of countries where new drugs are launched via partnering
    Number of products and number of countries where they are launched
    6 products, 62 countries
    Development of therapeutic and care foods Number of new therapeutic and care food products launched Discussing joint development with partners based on product profile targets set in light of market research

    ②Contribution to scientific technology
    We contribute toward better health and welfare by making patents and dissertations for innovative technology created through pharmaceutical research, and by open innovation with academic institutions and other entities.

    Key initiatives KPIs Fiscal 2024 Result (as of March 31, 2025)
    Joint research with academia and other pharmaceutical companies
    Participation in consortiums sponsored by the Japan Pharmaceutical Manufacturers Association
    Progress of open innovation Collaboration with Reborna Biosciences, Inc. in Joint Research Promotion
    Participating in AMED-sponsored industry-academia collaboration projects to develop a next-generation AI system for drug discovery and to build an innovative screening platform for DNA-encoded libraries (DELs)
    Donation to the Kanzawa Medical Research Foundation for provision of research grants Continued provision of research grants Donated to Kanzawa Medical Research Foundation

    ①Quality control and steady supply and procurement
    We build manufacturing and quality control systems that comply with the latest laws, regulations, and guidelines, procure environmentally friendly materials, and work to provide a steady supply of products in recognition of the fact that our products are a part of people’s lives.

    Key initiatives KPIs Fiscal 2024 Result (as of March 31, 2025)
    Formulation and implementation of the “Stable Supply Manual”
    COVID-19-related countermeasures
    Implementation of the Kissei Pharmaceutical Quality System
    Implementation of management review and improvement to instructions The management team conducted a management review, and provided feedback on the results
    Operational Launch of a quality event management system
    Number of months of inventory (by product) Secured adequate inventory, despite limited shipping for some products
    Progress toward developing a system to ensure a steady supply of high-quality pharmaceutical products
    ・Regular review of the “Stable Supply Manual”
    ・Continuous capital investment to ensure stable production
    ・Implementation of rank-based training at plants
    ・Implementation of regular assessment of procurement risks for each raw material and product
    Conducted regular review and revision of the Stable Supply Manual
    Construction of a new formulation building to strengthen the production system
    Implemented a rank-based training on pharmaceutical quality systems, GMP basics, and pharmaceutical approval matters
    Conducted regular risk assessments and implemented countermeasures related to raw materials, bearing in mind global situations and other factors
    Product recalls
    ・0 recalls of pharmaceutical products
    ・Complaint rate of 7.0 ppm (parts per million) or less for food products
    Pharmaceutical products recalls: 0
    Nutrition Division complaint rate: 2.34ppm

    ①Promote proper product usage (drugs, foods)
    We provide accurate information backed by science, understanding that offering proper information and promoting proper usage is essential for demonstrating the maximum value of our products.

    Key initiatives KPIs Fiscal 2024 Result (as of March 31, 2025)
    Creation of a sales system for rare disease treatments Progress of activities for the Rare Diseases Project Provided information on TAVNEOS® in conjunction with the Rare Disease Project and branch offices
    Promotion of activities to provide appropriate medical information
    Number of products introducing "AI Detail"
    Immediate provision of safety information via the safety information provision system
    Provision of appropriate science-based information (0 instances of inappropriate provision of information that led to serious improper use or misuse) Number of monitoring and material reviews: 1,918,025 (instances of inappropriate provision of information that lead to
    serious improper use or misuse: 0)
    Cases Subject to Administrative Guidance by the Ministry of Health, Labour and Welfare Monitoring Project: 2
    Construction of an efficient and effective system to provide information utilizing digital tools Strengthened communication with medical professionals through the provision of details via email
    Promotion of Utilization of the KISSEI Safety LINK safety information system

    ②Improvement customer satisfaction and patient support
    We contribute to medical treatment by offering the solutions that medical professionals and patients really need.

    Key initiatives KPIs Fiscal 2024 Result (as of March 31, 2025)
    Operation of the medicine consultation window Provision of information from the patient’s perspective Responses to telephone inquiries from patients: 293
    Operation of a patient-oriented website Website production from the patient’s perspective Enhanced existing patient-oriented website: Addition of dialysis-related pruritus content
    Number of facilities registered in searchable database for medical institutions offering treatment for ANCA-associated vasculitis: 166 (16 facilities added in fiscal 2024)

    Material issues related to management base

    ①Strengthening governance
    We have positioned strengthening corporate governance as an important management issue for the continued improvement of corporate value, and we are working to create a system that can address changes inside and outside the Company quickly and flexibly.

    Key initiatives KPIs Fiscal 2024 Result (as of March 31, 2025)
    Formulation and implementation of the Kissei Basic Policy on Corporate Governance Appropriate responses to Japan’s revised Corporate Governance Code Complied with all principles required by Japan’s revised Corporate Governance Code and disclosed them in the Corporate Governance Report
    Appointment of a female director
    Increase in the number of outside directors
    Introduction of executive officer system
    Improvement of the Board of Directors’ functions through dialogue with stakeholders and evaluations of the effectiveness of the Board of Directors Evaluated the effectiveness of the Board of Directors and disclosed the results in our Corporate Governance Report
    Female directors: 1 (out of 12 directors in total)
    Outside directors: 1/3 or higher (four of 12 directors in total)
    Conducted R&D Meeting
    Established the "Multi-Stakeholder Policy"

    ②Risk management
    We promote the smooth execution of corporate activities by properly managing risks that may hinder the realization of our Management Philosophy and the completion of our management plans and mounting an appropriate response to any risks that manifest.

    Key initiatives KPIs Fiscal 2024 Result (as of March 31, 2025)
    Creation of a risk management system Appropriate review of risk management items and examination and implementation of appropriate countermeasures The Risk Management Committee evaluated and confirmed the response status of 320 total risk items as reviewed by each department and reported to the Board of Directors that they were being appropriately managed.
    Development and update of disaster and pandemic countermeasures Development and operation of business continuity management (BCM) and business continuity plans (BCPs) Distributed Disaster Pocket Manual to all employees
    Conducted disaster response headquarters operation training

    ③Compliance
    We practice compliance when conducting corporate activities, understanding that this is fundamental to the sound development of the Company and earning stakeholder trust.

    Key initiatives KPIs Fiscal 2024 Result (as of March 31, 2025)
    Implementation of compliance program The number of times compliance training was implemented (once every six months or more for each division) Training Sessions Conducted for All Employees: 8 Sessions
    Implementation of compliance questionnaire (response rate of 95% or higher) Compliance Status Questionnaire response (implemented annually)
    Survey response rate: 90.9%
    Establishment of a whistleblowing and consultation system (Kissei Hotline) Number of major compliance violations (0 incidents) Number of major compliance violations: 0
    Consideration given to animal welfare when conducting experimentation on animals Status of company initiatives related to experimentation on animals Renewed accreditation (AAALAC International, etc.) via third party evaluation organizations
    Convened the Animal Experimentation Committee: 8 times
    Self-check conducted by the Animal Experimentation Committee: 6 times
    Regular clinical observations of all animals in the safety laboratories conducted by the veterinary care team: 12 times (more than once per month)
    Revised animal experimentation policies and regulations: 12 items

    ①Human resource cultivation
    We respect the individuality of each employee and provide a variety of opportunities for employees to develop their skills, focusing on individual abilities and aptitudes in an effort to develop human resources who can contribute to the development of the Company and society.

    Key initiatives KPIs Fiscal 2024 Result (as of March 31, 2025)
    Implementation of rank-based training and job specific education Implementation of rank-based training and job specific education 【Rank-Based Training】
    Education for new employees: 50 participants (joined the Company in April of fiscal 2024)
    Education for new division directors: 6 participants (appointed in or after June 2023)
    Education for mid-level managers: 19 participants (line managers with 3–4 years’ experience)
    Education for new managers: 28 participants
    Basic education for management: 27 participants
    【Job-Specific Training】
    Participants in the Research Division’s Human Resources Development Program: 276 Research and Drug Manufacturing Division employees)
    Pharmaceutical English training for the development of global human resources (elective): 1 participant from the Business Development Department, 11 participants from the Research Division, 5 participants from the Clinical Development Division, 6 participants from the Pharmaceutical Technology Division, 6 participants from the Quality, Safety and Regulatory Affairs Division
    MR development education: 24 participants from the Sales and Marketing Division, 4 participants from the Others
    Implementation of DX-based education for human resource development DX human resource development e-learning coursework participants: 233 people
    DX Literacy Assessment: All employees to score 50 or above by 2028. Fiscal 2024 score: 46.2 (a 4.6% increase from the previous year)
    Support for self-development Rate of participation in correspondence courses 46.1%
    Establishment of an interview system for skill and career development Implementation of interview system for skill and career development Interview-based skills and career development: 119 participants (employees who were promoted in fiscal 2024)

    ②Diversity and gender equality
    We are striving to improve the Company’s working environment in terms of hiring practices, working styles, our human resource system, and other aspects to ensure that a wide range of employees can demonstrate a variety of abilities, based on the idea that when employees with different modes of thinking and value systems can recognize and inspire each other, they can add dynamism and creativity to a company.

    Key initiatives KPIs Fiscal 2024 Result (as of March 31, 2025)
    Initiatives to cultivate the next generation (Platinum Kurumin, etc.) Percentage of female employees who take childcare leave (75% or higher annually, in line with Platinum Kurumin certification standard) Women: 100%
    Percentage of male employees who take childcare leave (30% or higher annually, in line with Platinum Kurumin certification standard) Men: 100%
    Initiatives to promote the success of women Ratio of average length of employment for female employees to average length of employment for male employees (70% or higher) 79.3%
    Prevention of discrimination and harassment Harassment prevention training Conducted the following awareness education
    "Power harassment," "Sexual harassment," "Various forms of harassment in the workplace", and "Proper promotion of labor management"
    Recruitment of people with disabilities Recruitment of people with disabilities (2.5% or higher) 2.76%

    ③Enhancement of workplace environment
    We will create a worthwhile workplace environment that gives employees a strong sense of motivation as workstyle reforms and the response to COVID-19 bring major changes to working conditions.

    Key initiatives KPIs Fiscal 2024 Result (as of March 31, 2025)
    Recognition under the Certified Health & Productivity Management Outstanding Organizations Recognition Program (Large Enterprise Category)
    Promotion of work–life balance
    Recognition under the Certified Health & Productivity Management Outstanding Organizations Recognition Program
    Percentage of employees who took stress checks
    Percentage of employees who use commemorative leave (100% per year)
    Recognized under the Certified Health & Productivity Management Outstanding Organizations Recognition Program (Large Enterprise Category)
    Percentage of employees who took stress checks: 96.8%
    Percentage of employees who took commemorative leave: 99.4%
    Occupational health and safety initiatives and maintaining employee health Number of work-related accidents Number of work-related accidents: 3 incidents (including 2 that required leave), analyzed the causes of each incident and implemented measures to prevent recurrence

    ①Waste management and resource recycling
    We work to promote the conservation of a sustainable environment through the effective use of resources, preventing pollution and reducing environmental impact.

    Key initiatives KPIs Fiscal 2024 Result (as of March 31, 2025)
    Maintenance of environmental management systems ISO14001 recertification and maintenance Maintained ISO 14001 certification (Renewal)
    Implementation of environment conservation activities Waste reduction, improvement of recycling rate, and final disposal rate reduction (improve rate 1% every fiscal year) Amount of waste: increased 6.6% year on year
    Recycling rate: 77.3% (worsened 7.9% year on year)
    Final disposal rate: 3.6% (worsened 0.3% year on year)
    Priority purchasing of green products The purchase rate of green products 32.11%

    ②Initiatives toward biodiversity
    We take care to ensure that our business activities do not adversely affect biodiversity and ecosystems and take action accordingly.

    Key initiatives KPIs Fiscal 2024 Result (as of March 31, 2025)
    Proper management of research and clinical trials that involve genetically modified organisms Implementation status of proper research and clinical trials based on internal regulations, procedure manuals, and other guidance Number of Genetic Recombination Experiment Safety Committee meetings: 2
    Genetically Modified Organisms Clinical Trial Safety Committee: Not applicable
    Number of violations of laws / regulation: 0
    Number of deviations from procedural manuals: 1
    Number of accidents: 0
    Operational rule revisions: 2 times (changes to committee members and deputy safety officer)
    Provided education and training for new staff and provided regular education for researchers and security guards.
    Appropriate management of chemical substances Appropriate management of hazardous chemical substances (including PRTR-listed substances) Managed appropriately
    Continued drainage in line with water quality management standards Managed appropriately

    ③Climate change countermeasures
    We promote environmental management that acknowledges that climate change is a risk factor, with the goal of sustainable growth for society and the Company, and in accordance with Japan’s Carbon Neutrality Declaration.

    Key initiatives KPIs Fiscal 2024 Result (as of March 31, 2025)
    Continued reduction of CO2 emissions
    Promotion of energy-saving measures and climate change countermeasures
    Reduction of CO2 emissions
    ・Fiscal 2030 target: 46% reduction compared with fiscal 2013 (Scope 1 and 2)
    Preliminary CO2 Emissions for Fiscal Year 2024: 10,154 tons (a 9.7% decrease compared to the same period last year)
    Established the "Kissei Group Basic Environmental Policy"
    Setting of Kissei Group CO2 Emission Reduction Target: Reduce CO2 emissions by 42% in fiscal year 2030 compared to fiscal year 2020
    Rate of renewable energy utilization
    ・fiscal 2030 target: 74% or more of total electricity consumption
    Preliminary fiscal 2024 figure: 81.7%
    Assessment of risks and opportunities associated with climate change Disclosed information in accordance with the TCFD recommendations
    CDP questionnaire score for fiscal 2024: B

    ①Participate in social contribution activities
    We contribute to the sustainable development of society as a fundamental/ essential part of our corporate activities. Moreover, we actively participate in social contribution activities and endeavor to realize our Management Philosophy as a corporate citizen and a member of society.

    Key initiatives KPIs Fiscal 2024 Result (as of March 31, 2025)
    Contribution to culture, the arts, and sports
    Donations to child welfare facilities and relief for natural disasters
    Number of sponsorships and donations that contribute to society and local communities Number of sponsorships / donations: 39
    Sponsored cultural events, the arts, and sports, provided sponsorship and donations to child welfare facilities and other organizations that contribute to local communities and society, provided support for recovery from natural disasters, etc.
    Participation in local cleanup activities and offering of factory and research institute tours Number of social contribution activities by region Cleaning activities around the company, river cleanup, environmental law training with local students, etc.