Goals for 2030 in non-financial areas (environment/society) "Sustainability Goals 2030"

Ideal State and Directions to Advance

1. Contributing to a sustainable global environment [Environment (E)]

The ideal state of the ROHTO Group ("Group") is where we are proactively undertaking green initiatives, including resource circulation and considerations for the environment, where we have established a system to capture environment-related data in ROHTO Pharmaceutical Co., Ltd. ("ROHTO") and the whole Group, and where relevant information, such as the reduction targets set for various aspects, the details of each initiative, and actual results, are disclosed in and outside the Group, following social rules. Specifically, we will build a framework to work on the reduction of greenhouse gas (GHG) emissions and waste disposed through the manufacturing process and waste recycling, the development and provision of low-carbon products and items (including containers and packaging materials), and the preservation of biodiversity through all the Group business activities and the whole value chain.

• Contributing to a low-carbon society

  As we have set and disclosed concrete numerical targets for reducing GHG emissions from Scope 1 and 2 of ROHTO, we will continuously work on attaining those targets and switch the purchase of electricity for ROHTO's major offices (Osaka Plant, UENO Technology Center, and ROHTO Research Village Kyoto) to Co2-free electricity. Further, we will formulate a roadmap to reduce plastic usage for our products, which significantly affects GHG emissions.

• Contributing to a recycling-oriented society

  For printing papers used for our business activities (such as product packaging and office use), we will accelerate switching to eco-friendly papers and promote purchasing "green" products for office equipment and supplies.

• Considerations for the environment

  ROHTO has started to put the original symbol, the "R-eco" mark, on the packaging of our eco-friendly products. As definite criteria for placing that mark have not yet been established, we will set those criteria for the whole Group, discuss a specific target rate of products bearing that mark, and disclose it as early as practicable.

• For responsible procurement of palm oil

  To ensure sustainable palm oil procurement, we will participate in outside initiatives and follow the necessary process in stages.

2. Maximization of human capital, coexistence with society [Society (S)]

For the Group to attain sustained development while contributing to realizing a "Well-being" society, we must constantly create new values and remain in the position to be sought by the world. Each member (including officers and employees) of the Group companies bears that important role, and without individual growth, no organizational growth is expected. And, for usto generate new values continuously in the rapidly diversified and globalized current business circumstances, it is crucial that diverse personnel share the values, work hard together, and motivate each other to progress. To advance "Well-being" management, we will push Diversity Management to encourage all members to participate in business activities proactively and realize their career visions autonomously as professional workers. Moreover, we pursue creating a society of "Well-being" by building an organization that cultivates diverse individualities so that each member and the company can grow together. (ROHTO Diversity Management Policy)

• Promotion of diversity (promotion of employment of persons with disabilities, LGBTQ initiatives, and active participation by senior persons and women)

  ROHTO's employment rate of persons with disabilities exceeds the mandatory rate; however, having much room for improvement, we will create a working environment where many challenged persons can actively work. Also, with more careful consideration for LGBTQ persons and addressing any harassment issues, we will create and maintain a comfortable and inclusive workplace. For senior human resources, their number is expected to increase further in the "era of the 100-year lifespan," along with the full extension of the retirement age to 65 years in FY2025. As it is necessary to offer them opportunities for upskilling and lifelong learning, we are now working on programs, including a training course, to support their active participation. Regarding the empowerment of women, the percentage of female employees in ROHTO exceeds 50%, and the same for female managers is about 30%. Almost no female member leaves the company due to child delivery or childcare; thus, it can be said that ROHTO has achieved a certain level. However, according to our human resources portfolios, there are still certain gaps between males and females. For instance, the male group with longer years of service takes more supervisory roles than the female. Therefore, we will further strive to improve those portfolio ratios between men and women.

• Improving the "Well-being" of all members employees(Enhancement of the level of engagement)

  ROHTO has introduced the "Well-being" questionnaire survey (self-evaluation by its members) to ask how they deal with respective tasks, assess to what extent they feel affinities with the ROHTO's concept of values, and measure their satisfaction with working for the company. We monitor the scores on the survey ("Well-being Points"), indicating members' engagement and contentment. For the organization and individuals to grow together, we do not intend merely to raise the average of those scores but to push forward our efforts not to leave anyone behind. For that purpose, we will further strive to enhance their engagement, setting the highest target of realizing full points by all members.

• Promotion of health and productivity management and ensuring occupational safety and health of employees

  Recognizing that ensuring the employees' safe and secure lives and physically and mentally healthy conditions is the basis of corporate activities, we are advancing health and productivity management, setting our original indicators. In addition, through further efforts to increase the usage rate of paid leave, we will encourage all the employees to use holidays to refresh themselves, physically and mentally. We will also continuously work on preventing any work-related accidents.

• Respect for human rights and promoting CSR procurement

  As a global corporation, we recognize respecting the human rights of all members of the Group and business partners and suppliers (collectively "Business Partners") is essential for implementing our businesses. For that purpose, we will identify any risks related to human rights in the Group and the Business Partners without missing the timing. If any risk is actualized, we will promptly address, redress,and disclose its outcome in and outside the company. Also, encouraging the Business Partners to understand our sustainability initiatives and take action for the same goal, we seek the state where we are building trusted relationships with them.

3. Strengthening management foundation [Governance (G)]

We aim to realize a circumstance where all the members of the Group share compliance awareness and never allow any violation, any compliance risk can be promptly addressed, and appropriate measures are taken through the Group. To that end, we ensure the thorough provision of compliance education and enforce the system to receive internal and external reports and consultation on any doubt and violation of compliance ("Whistleblowing")

Future materiality and review of non-financial targets

In addition to responding to internal and external issues related to sustainability and changing expectations from stakeholders, we appropriately assess the environmental, social, and economic conditions in Japan and overseas, and the degree of impact on our group's business activities. We will review non-financial indicators (KPIs) as appropriate.

Sustainability Goals 2030 (non-financial goals for 2030)