Collaboration with Business Partners

The Rohto Group provides products that are deeply involved in people's lives, including pharmaceuticals that affect people's health. To earn the trust of our customers, we strive to develop and manufacture high-quality products that are safe to use. At the heart of our philosophy is the belief, as stated in our seven pledges, that "We work to support society and create the world of tomorrow." In order to realize sustainable growth for society as a whole, in addition to the economic value created by our core business, we are committed to having a strong awareness of issues related to the environment, human rights, and legal compliance, and together with our stakeholders, we aim to fulfill the "social responsibility" that the times demand.

Building a sustainable supply chain

We strive to build strong partnerships and long-term cooperative relationships with the various stakeholders who support us, from raw material procurement and manufacturing to inventory management, logistics and distribution, and sales, in order to build a sustainable and responsible supply chain.

Basic Approach to Procurement

Sustainable, safe, secure, and high-quality manufacturing cannot be achieved by our company alone. We value our cooperative relationships with our business partners, and together we work towards sustainable procurement and the provision of products that you can use with confidence, while considering environmental protection, resource conservation, and human rights.
In July 2023, we revised our Supplier CSR Guidelines and renamed them the "Rohto Group CSR Procurement Guidelines." With the aim of thoroughly communicating these items to all our business partners, we have been working to obtain consent forms regarding CSR procurement, and all of Rohto Pharmaceutical's business partners have agreed to them. By seeking the understanding of our business partners and taking measures to address any issues, we are promoting socially responsible manufacturing throughout the entire supply chain.

Rohto Group CSR Procurement Guidelines

Monitoring Sustainable Procurement

When procuring products, materials, raw materials, sales promotion tools, etc., we are conducting "Supplier CSR Assessments" to promote procurement activities that place even greater emphasis on CSR (corporate social responsibility) perspectives such as the natural environment, working conditions, and human rights, in addition to the traditional considerations of quality, performance, price, and delivery terms. Through improvement activities based on the results of each company's self-assessment, we will promote CSR procurement that will increase social sustainability by considering the impact on society and the environment and reducing risks.

Supplier CSR Assessment Results

Survey Overview

subject	Suppliers (raw materials, supplies, outsourcing, sales promotion)
Number of subjects	70 companies in FY2024 * (44 companies in FY2023) 100% response rate
Survey period	November-December 2024
Survey methodology	Utilizing the UN Global Compact Network Japan (GCNJ)'s CSR Procurement Self-Assessment Questionnaire
Survey items	Total 9 items Corporate governance related to CSR (establishment of CSR promotion system, internal control, whistle-blowing system, etc.) Human rights (respect for human rights, avoidance of complicity in human rights violations, etc.) Labor (prohibition of discrimination in employment, provision of equal opportunities, prohibition of child labor, etc.) Environment (Promotion of Chemical Safety, climate change, efficient resource use, biodiversity initiatives, etc.) Fair business activities (compliance with relevant laws, prevention of unfair trade, etc.) Quality and safety (ensuring the quality and safety of products and services, etc.) Information security (protection of personal information and privacy, prevention of unauthorized use of confidential information, etc.) Supply chain (implementing CSR procurement, etc.) Coexistence with local communities (health, safety and hygiene of local communities and residents, contribution to sustainable development, collaborative efforts, etc.)

*This covers 90% based on purchase costs.

Answer result

We consider suppliers with whom we have business relationships that exceed a certain transaction amount to be particularly important. We conduct regular surveys using questionnaires from the United Nations Global Compact Network Japan (GCNJ) for these important suppliers to promote continuous engagement. For suppliers with low scores, we review the results together and request improvements as necessary. In fiscal year 2024, we implemented improvement measures and engaged in dialogue with seven suppliers who had issues, particularly in the areas of human rights and the environment. As a result, we confirmed that two companies had made improvements. We will continue to engage with our suppliers through regular supplier CSR assessments to build a sustainable supply chain.

Towards collaboration with our suppliers

At our company, we comprehensively assess our suppliers' commitment to sustainability, including environmental issues, through supplier CSR assessments, in addition to their transaction volume, impact on supply, future prospects, and importance in terms of technology and quality. Furthermore, we conduct more thorough assessments and dialogues with suppliers who have a particularly significant impact on our business. We designate these suppliers as "key suppliers," and our aim is not only to ensure stable procurement but also to deepen mutual understanding through continuous dialogue on addressing and improving sustainability issues, thereby enhancing the sustainability of the entire value chain. In fiscal year 2024, we designated 70 companies as key suppliers and engaged in dialogue with them.

Key perspectives for promoting collaboration

When collaborating with our key suppliers, we consider the following points comprehensively:

Impact on transaction volume and supply
Future prospects, technological capabilities, and quality control system
Status of sustainability initiatives, including environmental initiatives
Systems for stable supply, including logistics and delivery time management.

These perspectives are not intended to unilaterally evaluate or select suppliers, but rather to serve as a common viewpoint for sharing challenges through dialogue and using that to drive improvement.
We will continue to work with our key suppliers to address challenges across the entire value chain and contribute to the realization of a sustainable society.

Business with new suppliers

We require all new suppliers to agree to comply with the "Rohto Group CSR Procurement Guidelines" before we begin doing business with them. Furthermore, we require them to conduct a self-check based on the "Supplier CSR Assessment" before any transactions begin to identify risks.

Initiatives for dialogue and engagement with suppliers

At our company, we create opportunities for dialogue and exchange to deepen mutual understanding with our suppliers and build stronger partnerships. As part of this effort, in 2025 we held a management meeting primarily for our key suppliers. Approximately 50 domestic suppliers participated, and the program included explanations of our medium-term management strategy by our management team, exchanges of opinions, factory tours, development exhibits, and product experiences. Through these activities, they were able to directly see our approach to manufacturing and our initiatives on the factory floor. The purpose of this meeting was to share our company's direction and recognized challenges, as well as to hear directly from our suppliers and further deepen mutual understanding. Moving forward, we will continue to work with our suppliers through ongoing dialogue to improve the value and strengthen the sustainability of the entire supply chain.