2022 Communication on Progress

Eisai Co., Ltd.

Published date

June 29, 2022

No. of questions

60

CEO Statement

Signed

  • Governance

    Policies and Responsibilities

    1. Does the Board / highest governance body or most senior executive of the company:

    Optional comment
    As a Company with a Committee System, Eisai has established a Board of Directors and the Nomination Committee, Audit Committee and Compensation Committee in accordance with laws and regulations. The Board of Directors appoints Corporate Officers in accordance with laws and regulations. Eisai separates the roles of the Board of Directors and the Corporate Officers. The Board of Directors is dedicated to overseeing business execution, while the Corporate Officers are responsible for business execution. Efforts toward sustainability constitute a risk that could affect corporate value. In accordance with Article 9 (Working on Realization of a Sustainable Society) of the “Corporate Governance Principles,” the Board of Directors receives reports from the assigned corporate officers regarding individual themes, in addition to regular reports related to ESG, and monitors the efforts. https://www.eisai.com/company/governance/cgregulations/cgguideline/index.html?_gl=1*1rqiq7g*_ga*MzE2ODc5MzQyLjE2MzQ2MTcyMjQ.*_ga_X1FWS6YR87*MTY1NTgwNTMwMi4zMy4xLjE2NTU4MDUzNDIuMjA. https://www.eisai.com/ir/stock/meeting/pdf/einv110_all.pdf (P58) Eisai publishes a Value Creation Report and an Environmental Report that explain the importance of sustainable development. These reports set forth Eisai's materiality and describes Social value creation and the foundations that support value creation, including human resources strategies and the environmental impact of our business activities. https://www.eisai.co.jp/ir/library/annual/pdf/pdf2021vcr.pdf https://www.eisai.com/ir/library/annual/pdf/epdf2021er.pdf With regard to anti-corruption, we have published a Corporate Governance Report on our website. https://www.eisai.com/company/governance/cgregulations/pdf/ecgovernance20211115.pdf (P5) Employees learn about compliance on a regular basis through the Compliance Handbook. This Handbook outlines the Eisai Network Companies’ (ENW) Charter of Business Conduct and the Code of Conduct and is designed to foster compliance awareness. It is intended for all officers and employees of the Eisai Network Companies worldwide, and is available in 16 languages. https://www.eisai.com/sustainability/management/compliance/pdf/ehandbook.pdf (P41) Eisai publishes ESG Data every year to understand the current situation and create corporate value. Since FY2021, Eisai has been publishing an Assurance Statement issued by an independent ESG monitoring organization. https://www.eisai.com/sustainability/management/pdf/eesg_index.pdf Every 3 months, all Corporate Officers attend a meeting of the Board of Directors to report on the status of decision-making and business execution in the operating divisions. The Board of Directors oversees the execution of duties by Corporate Officers and identifies potential risks. https://www.eisai.com/ir/stock/meeting/pdf/einv110_all.pdf (P53) Business risks are reported annually in the Annual Securities Report. https://www.eisai.co.jp/ir/library/securities/pdf/pdf40fr.pdf (P16)

    2. Does the company have a publicly stated commitment regarding the following sustainability topics?

    No, this is not a current priority

    No, but we plan to have a commitment within 2 years

    Yes, and the commitment is focused on our own operations

    Yes, and the commitment includes our own operations and the value chain

    Yes, and the commitment includes our own operations and the value chain along with communities and society

    Human Rights

    Labour Rights / Decent Work

    Environment

    Anti-Corruption

    Optional comment
    The Eisai Network Companies’ Charter of Business Conduct is posted on our corporate website. This charter outlines our commitments to our stakeholders including patients, customers, shareholders, investors, employees, healthcare providers, business partners and communities. https://www.eisai.com/company/philosophy/index.html Eisai’s Global Code of Conduct for Business Partners expresses our commitments to human rights, labor rights and decent work, the environment, and anti-corruption, and is available on our corporate website. https://www.eisai.com/sustainability/partner/guidelines/index.html The Eisai Human Rights Policy covering Human Rights and Labor Rights is posted on our website. https://www.eisai.com/sustainability/employee/human_rights/pdf/Human%20Rights%20Policy_en.pdf The ENW Environmental Protection Policy is based on the Charter of Business Conduct and sets forth the basic principles and nine specific environmental protection guidelines for environmental protection activities of ENW companies. https://www.eisai.com/sustainability/environment/vision/index.html Eisai has set mid- to long-term targets to achieve 100% renewable energy usage by 2030 and carbon neutral by 2040. https://www.eisai.com/sustainability/environment/carbon-neutral/index.html Eisai has established the ENW Anti-Bribery and Anti-Corruption (ABAC) Policy. This policy provides a set of common rules for Eisai network companies when dealing with external parties in order to ensure that all Eisai network companies conduct business activities free of bribery or corruption.

    3. Does the company have in place a code of conduct regarding each of the following sustainability topics?

    No, this is not a current priority

    No, but we plan to have a code of conduct within two years

    Yes, focused on employee conduct

    Yes, focused on employees and suppliers

    Yes, focused on employees, suppliers, and other business relationships

    Human Rights

    Labour Rights / Decent Work

    Environment

    Anti-Corruption

    Optional comment
    Our Human Rights Policy, including human rights and labor rights, are posted on the corporate website. https://www.eisai.com/sustainability/employee/human_rights/pdf/Human%20Rights%20Policy_en.pdf In accordance with our human rights policy, we conduct human rights due diligence on key stakeholders involved in our business, including "patients and consumers (including clinical trial participants)", "business partners (including suppliers)" and "employees". https://www.eisai.com/sustainability/employee/human_rights/index.html The Eisai Code of Conduct on human rights, labor rights, the environment and anti-corruption is posted on our corporate website as Eisai Global Code of Conduct for Business Partners. https://www.eisai.com/sustainability/partner/guidelines/index.html The Code of Conduct for Labor Rights and Decent Work is posted on our corporate website as Respect for Human Rights. https://www.eisai.com/sustainability/employee/human_rights/index.html Eisai has established the ENW Anti-Bribery and Anti-Corruption (ABAC) Policy. This policy provides a set of common rules for Eisai network companies when dealing with external parties to ensure that all Eisai network companies conduct business activities free of bribery and corruption. The Code of Conduct on Anti-Corruption is posted on our website as the Compliance Handbook. (P35) https://www.eisai.com/sustainability/management/compliance/pdf/ehandbook.pdf Eisai distributes the Compliance Handbook (in 16 languages) to all officers and employees of all Eisai network companies. The Compliance Handbook is updated regularly, the latest edition being the 8th edition issued in 2021. https://www.eisai.com/sustainability/management/compliance/pdf/ehandbook.pdf

    4. Has the company appointed an individual or group responsible for each of the following sustainability topics?

    No one is specifically responsible for this topic

    Yes, with limited influence on outcomes (e.g., limited access to internal information, limited decision-making authority)

    Yes, with moderate influence on outcomes (e.g., has access to relevant information, reports to senior manager)

    Yes, with direct influence of some outcomes (e.g., has access to relevant information, includes one or more senior manager with decision making rights

    Yes, with direct influence at the highest levels of the organization (e.g., has access to relevant information, includes most senior members of organization)

    Human Rights

    Labour Rights / Decent Work

    Environment

    Anti-Corruption

    Optional comment
    Eisai has assigned the following Corporate Officers to be responsible for sustainability items. Human Rights and Labor Rights: Corporate Officer, Chief HR Officer Environment: Corporate Officer in charge of General Affairs, Environmental and Safety Affairs and Japan Subsidiaries Anti-Corruption: Corporate Officer, Chief Compliance Officer, Internal Control, Chief Information Security Officer ESG: Corporate Officer in charge of ESG and Corporate Communications These Corporate Officers report on activities and progress toward sustainability goals to the Executive Committee, the highest decision-making body, every month, and to the Board of Directors every three months. Efforts toward sustainability constitute a risk that can affect corporate value. In accordance with Article 9 (Working on Realization of a Sustainable Society) of the “Corporate Governance Principles,” the Board of Directors receives ESG reports as well as reports on individual themes from the assigned corporate officers, and monitors their efforts. https://www.eisai.com/ir/stock/meeting/pdf/einv110_all.pdf (P58)

    5. Does the company have a formal structure(s) (such as a cross-functional committee) to address each of the following sustainability topics?

    No formal structure

    Yes, and with limited influence on outcomes (e.g., limited access to internal information necessary to understand risks, poor representation from relevant departments or functions)

    Yes, with moderate influence on outcomes (e.g., it includes representatives of some functions, departments, or business units most relevant for addressing the risks concerned, has access to relevant information, reports to senior manager)

    Yes, with direct influence on some outcomes (e.g., it includes representatives of functions, departments, or business units most relevant for addressing the risks concerned, has access to relevant information, it involves one or more members of senior management)

    Yes, and with direct influence at the highest level of the organization (e.g., full access to relevant information, it involves members at highest level of organization)

    Human Rights

    Labour Rights / Decent Work

    Environment

    Anti-Corruption

    Optional comment
    Efforts toward sustainability constitute a risk that can affect corporate value. In accordance with Article 9 (Working on Realization of a Sustainable Society) of the “Corporate Governance Principles,” the Board of Directors receives reports from the assigned corporate officers on sustainability, and monitors their efforts. https://www.eisai.com/ir/stock/meeting/pdf/einv110_all.pdf (P58) The Board of Directors has established an Audit Committee. Matters including sustainability issues reported to the Board of Directors in accordance with established rules, are reported to the Audit Committee (monthly or as needed). The results of internal audits are reported to the Audit Committee (monthly). Eisai’s governance system for human rights and labor is posted on the Eisai website as “Respect for Human rights.” https://www.eisai.com/sustainability/employee/human_rights/index.html “Business and Human Rights Steering Committee” is the highest level of the system. The steering committee is chaired by the Chief HR Officer, who is responsible for the implementation and management of the Human Rights Policy and includes as members the Corporate Officer in charge of General Affairs and Environmental & Safety and the Corporate Officers in charge of ESG and Corporate Communications. "Business and Human Rights" Project, a company-wide cross-organizational working group, was established to conduct activities that respect human rights in accordance with the Human Rights Policy, and it reports to the “Business and Human Rights Steering Committee”. The Eisai Group established the Company-wide Environment and Safety Committee, chaired by the Corporate Officer in charge of the environment, as a decision-making body to formulate basic policies and roadmaps, set action plans, and discuss important themes related to the environment. The committee promotes global activities such as reduction of greenhouse gas emissions and efficient use of resources. It also strengthens activities to identify and address environment-related risks. https://www.eisai.com/sustainability/environment/management/index.html https://www.eisai.com/ir/library/annual/pdf/epdf2021vcr.pdf (P50) Eisai defines compliance as the “observance of legal and ethical standards” and places it at the core of its management activities. The Eisai Group’s compliance program is implemented through the dissemination of messages from top management, establishment of a compliance promotion system, development of codes of conduct and rules, awareness-raising activities, and the establishment of a consultation and whistleblower system (Compliance Counter). Compliance promotion activities are periodically reviewed by the Compliance Committee is made up of the Chief Compliance Officer and four outside lawyers with extensive professional experience in the United States, Europe, Japan, and Asia. Changes in the global business environment, issues that emerge from scrutiny, and advice based on risk assessments are reflected in our efforts to promote compliance more effectively.

    Prevention

    6. Does the company have a process or processes to assess risk?

    No, this is not a current priority

    No, but we are planning to develop one in the next two years

    Yes, related to our own operations

    Yes, related to our own operations and entire value chain and other business relationships

    Human rights risks

    Labour rights risks

    Environmental risks

    Corruption risks

    Optional comment
    In accordance with the Japanese Companies Act, Eisai’s Board of Directors established the “Rules Concerning the Establishment of a System to Ensure the Proper Performance of Duties by Corporate Officers.” These rules stipulate that all corporate officers should identify and evaluate risks associated with their duties and establish, maintain, and operate the internal control systems. In order to avoid risks and keep them within acceptable limits, Eisai developed the “ENW Internal Control Policy” and is implementing various initiatives, including the establishment, maintenance, and operation of internal control systems for ENW as a whole. The Risk Management Committee is chaired by the corporate officer in charge of internal control, and important risks are managed centrally throughout the company. Through continuous monitoring of external corporate scandals, Eisai quickly detects similar potential risks in its own companies and promptly responds to them through risk avoidance and prevention activities. The corporate officer in charge of internal control regularly attends Board of Directors meetings and reports those issues to the Board. One of the tools used by Eisai for risk management is CSA (Control Self-Assessment). In the CSA activity, all corporate officers and department managers in ENWs identify and evaluate risks in their own systems each year, and work to address the identified risks. Eisai’s internal audit departments in each business region conduct internal audits on themes selected based on risk. The results of internal audits, assessed independently and objectively, are reported to the Board of Directors and the Audit Committee. To assure high-quality audits that conform to global standards, the Corporate Internal Audit Department is evaluated by an external assessment committee composed of external experts based on the standards of The Institute of Internal Auditors (an international professional association of internal auditors based in the U.S.). https://www.eisai.com/sustainability/management/compliance/index.html

    7. Does the company have a due diligence process through which it identifies, prevents, mitigates, and accounts for actual and potential negative impacts on sustainability topics?

    No, this is not a current priority

    No, but we are planning to develop one in the next two years

    Yes, related to our own operations

    Yes, related to our own operations and entire value chain and other business relationships

    Human rights risks

    Labour rights risks

    Environmental risks

    Corruption risks

    Optional comment
    Our Human Rights Due Diligence is posted on our website as “Human Rights Policy.” https://www.eisai.com/sustainability/employee/human_rights/pdf/Human%20Rights%20Policy_en.pdf Based on our Human Rights Policy, we conduct human rights due diligence on key stakeholders involved in our business, including "patients and consumers (including clinical trial participants)", "business partners (including suppliers)" and "employees". We evaluate human rights issues faced by these key stakeholders based on the magnitude, potential impact, and likelihood by analyzing case studies from the pharmaceutical industry to date. This analysis identified the human rights issues that could pose the most significant risks to our business. We also need to mitigate sustainability risks in our supply chain to ensure business continuity. We will promote "responsible procurement" initiatives aimed at reducing risks and increasing shared value in society and the environment. Since FY2020, we have held a business partner briefing session on sustainable procurement for a total of 151 major suppliers of direct materials of Eisai Co., Ltd. (covering 99% of transactions on value basis) and to obtain their agreement to comply with the Code of Conduct, which includes aspects of human rights and labor, environmental protection, and anti-corruption. https://www.eisai.com/sustainability/partner/sustainableprocurement/index.html

    7.1. During the due diligence process, which business relationships are reviewed?

    A few suppliers or business relationships [approximately less than 25 %]

    Several suppliers / business relationships (i.e., first tier or other high priority) [approx. 25 - 50 %]

    Most suppliers / relevant business relationships [approx. 51 - 99 %]

    All suppliers / relevant business relationships outside the supply chain

    Human rights risks

    Labour rights risks

    Environmental risks

    Corruption risks

    Optional comment
    Since FY2020, Eisai has held business partner briefing sessions on sustainable procurement for a total of 151 major suppliers of direct materials of Eisai Co., Ltd. (covering 99% on a transaction value basis) and obtained their agreement to comply with the Code of Conduct, which includes aspects of human rights and labor, environmental protection, and anti-corruption. In FY2022, the sustainable procurement program will be expanded to include suppliers of our manufacturing plants overseas, and to implement sustainability due diligence in the supply chain.

    Concerns and grievance mechanisms

    8. Are there any processes through which members of the company’s workforce can raise concerns about the company’s conduct related to human rights, labour rights, environment, or anti-corruption?

    Optional comment
    For internal and external issues, we have a hotline, email, and a dedicated website where people can submit or raise issues anonymously. We also have a dedicated website for our business partners. All consultations and concerns raised are treated confidentially.

    8.1. Please provide additional detail regarding the process(es) the company has through which members of the company’s workforce can raise concerns about the company’s conduct.

    No

    Yes

    Is the process communicated to all employees/workers in local languages?

    Is the process available to non-employees (e.g., contractors, vendors, suppliers)?

    Is the process confidential (e.g., whistleblowing process)?

    Are there processes in place to avoid retaliation?

    Can concerns be raised about suppliers or other business relationships (e.g., clients, partners, etc.)

    Other (Please provide additional information)

    Optional comment
    The Compliance Counter serves as a point of contact for the whistleblower system in the Eisai network. All employees can raise issues to the local Compliance Counter. Employees located outside Japan can directly contact Eisai Co., Ltd. Global Headquarters in Japan.

    9. Does the company provide or enable access to effective remedy to right holders / stakeholders where it has caused or contributed to the adverse impact?

    No process to enable remedy to stakeholders

    Remedy available to some stakeholders (i.e., some geographies, employees only)

    Remedy is available to all affected stakeholders

    Remedy is available to all stakeholders, and suppliers are expected to have similar policies

    Human Rights

    Labour Rights / Decent Work

    Environment

    Anti-Corruption

    Optional comment
    We have just begun to consider the establishment of a whistleblower system for stakeholders in the supply chain, such as employees of our business partners.

    Lessons

    10. How does the company capture lessons regarding each of the following sustainability topics?

    No lessons are regularly captured

    Conducts root cause analyses/investigation of major incidents

    Conducts root cause analyses/investigation and changes organizational policies, processes, and practices accordingly

    Systematically conducts root cause analyses/investigation and leverages learnings to influence both internal and external affairs

    Human Rights

    Labour Rights / Decent Work

    Environment

    Anti-Corruption

    Optional comment
    Eisai conducts cause analyses and practices in accordance with Eisai's Global Code of Conduct for Business Partners, which sets forth standards for legal compliance, ethics, human rights and labor, health and safety, the environment, and management systems. https://www.eisai.com/sustainability/partner/guidelines/index.html In January 2021, we joined the Pharmaceutical Supply Chain Initiative (PSCI), a non-profit organization dedicated to promoting sustainable procurement in the pharmaceutical industry supply chain. Since FY2020, we have held business partner briefing sessions on sustainable procurement for a total of 151 major suppliers of direct materials of Eisai Co., Ltd. (covering 99% on a transaction value basis) and obtained their agreement to comply with the Code of Conduct. We have also conducted EcoVadis sustainability assessments of suppliers. None of our suppliers that participated in the assessment were identified as high risk. We are engaging with business partners that have room for improvement judging from the assessment scores, and have a common understanding of what needs to be improved before the next assessment. https://www.eisai.com/sustainability/partner/sustainableprocurement/index.html In addition to internal efforts, Eisai participates in climate change initiatives and attends seminars to gather lessons learned about the environment.

    Executive Pay

    11. Is executive pay linked to performance on one or more of the following sustainability topics?

    No, and we have no intention to change

    No, but we plan to within two years

    Yes

    Human Rights

    Labour Rights / Decent Work

    Environment

    Anti-Corruption

    Optional comment
    Certain corporate officers in charge of sustainability-related operations, such as manufacturing, HR and environmental affairs, ESG, and the Chief Compliance Officer, have set relevant targets as individual performance objectives. The Compensation Committee, chaired by an outside director, reviews the implementation of a common scheme of sustainability goals applicable to the goals of all corporate officers. https://www.eisai.com/ir/stock/meeting/pdf/einv110_all.pdf（P172）

    Board Composition

    12. Percentage of individuals within the company’s Board / highest governance body by:

    Number/Percentage

    Not applicable (Please provide additional information)

    Total number of board members (#)

    11

    Male (%)

    91

    Female (%)

    9

    Non-binary (%)

    0

    Under 30 years old (%)

    0

    30-50 years old (%)

    9

    Above 50 years old (%)

    91

    From minority or vulnerable groups (%)

    0

    Executive (%)

    9

    Independent (%)

    64
    Optional comment
    As a Company with Committees System, Eisai has established the Board of Directors and the Nomination, Audit and Compensation Committees in accordance with laws and regulations, with the Board of Directors appointing Corporate Officers in accordance with laws and regulations. In addition, the Chair of the Board of Directors and the chairs of the Nomination, Audit and Compensation Committees are all appointed from among the outside directors, creating an organizational structure that enables highly transparent business execution. As of June 17, 2022, the Board of Directors consists of 11 board members (including 1 woman) and the Executive Board, as the highest decision-making body of business execution, consists of 22 corporate officers (including 4 women). The ratio of women in the Eisai Group as a whole (board members and corporate officers) is 15.6%. As explained in our corporate website (https://www.eisai.com/company/governance/index.html), Eisai fully leverages being a company with committees system, with the Board of Directors entrusting most of the decision-making authority for business execution to corporate officers to the extent permitted by laws and regulations in order to devote its attention to the oversight of management. Directors and corporate officers communicate with each other and build a relationship of trust while performing their respective duties and fulfilling their responsibilities, with the aim of contributing to the enhancement of corporate value and the creation of social value.

    13. Do you produce sustainability reporting according to:

    Data Assurance

    14. Is the information disclosed in this questionnaire assured by a third-party?

    Limited assurance statement is posted on our corporate website.　https://www.eisai.com/sustainability/management/pdf/eesg_index.pdf

  • Human Rights

    Materiality / Saliency

    1. Which of the following has the company identified as material human rights issues connected with its operations and/or value chain, whether based on their salience (i.e., the most severe potential negative impacts on people) or another basis?

    Optional comment
    Based on our "Human Rights Policy" formulated in March 2019 in accordance with international norms such as the United Nations Guiding Principles on Business and Human Rights, we are promoting efforts to respect the human rights of all our stakeholders. We require our business partners to comply with the Supplier Code of Conduct, which includes respect for human rights.

    Response

    8. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the human rights principles, including any challenges faced and actions taken towards prevention and/or remediation.

    Access to Medicines (ATM): ATM is a fundamental element of the right to health for all people, regardless of nationality, economic disparity or social standing. We regard the lack of ATM to be a human rights issue. We have been participating in the global program led by the World Health Organization (WHO) to eliminate lymphatic filariasis, one of the neglected tropical diseases, by providing LF medicines free of charge for the treatment of people with the disease and infection control in endemic countries, and will continue to do so until LF is eliminated in all countries. Gender Discrimination: Women are recognized as a group vulnerable to gender discrimination. This is particularly true in Japan. To accelerate activities to realize our diversity and inclusion strategy in Japan, we have set a KPI of 30% for the ratio of female managers in Eisai Co., Ltd. in order to realize our hhc philosophy. . Sexual orientation and gender identity (LGBTQI): As a human rights awareness program for officers and employees of Eisai and its network companies in Japan, lectures by external LGBT parties were held with the aim of sharing the thoughts, concerns, and feelings of LGBT persons. Human Rights in the Supply Chain: We are taking measures to mitigate potential adverse human rights, labor and health and safety impacts in our supply chain through sustainability due diligence using EcoVadis, an outsourced contractor, and engagement with suppliers based on the assessment results.

  • Labour

    Commitment

    1. Does the company have a policy commitment in relation to the following labour rights principles?

    No, and we have no plans to develop a policy

    No, but we plan to in the next two years

    Yes, included within a broader policy

    Yes, articulated as a stand-alone policy

    Not applicable (Please provide additional information)

    Freedom of association and the effective recognition of the right to collective bargaining

    2019

    Forced labour

    2021

    Child labour

    2021

    Non-discrimination in respect of employment and occupation

    2021

    Occupational safety and health

    2002

    Working conditions (wages, working hours)

    Optional comment
    Eisai's collective bargaining agreement is not disclosed. However, Eisai’s relationship with the Labor Union and its occupational health and safety commitments are published on the Eisai website. https://www.eisai.com/sustainability/employee/health_safety/index.html Our commitments regarding forced labor, child labor, and non-discrimination are published on the Eisai website as the Charter of Business Conduct of Eisai Network Companies. https://www.eisai.com/company/philosophy/index.html Our non-discrimination commitments regarding employment and profession can be found in our Compliance Handbook（P18） https://www.eisai.com/sustainability/management/compliance/pdf/ehandbook.pdf

    1.1. For each labour rights policy, is it:

    Aligned with international labour standards?

    Publicly available?

    Approved at most senior level of the company?

    Applied to the company’s own operations?

    Applied to the company’s supply chain and/or other business relationships?

    Developed involving labour rights expertise from inside and outside the company?

    Other (Please provide additional information)

    Freedom of association and the effective recognition of the right to collective bargaining

    Forced labour

    Child labour

    Non-discrimination in respect of employment and occupation

    Occupational safety and health

    Working conditions (wages, working hours)

    Optional comment
    Eisai’s relationship with the Labor Union and occupational health and safety policies are published on the Eisai website. Eisai's collective bargaining agreement is not disclosed.　https://www.eisai.com/sustainability/employee/health_safety/index.html Our policies on forced labor, child labor, non-discrimination in employment and profession, and occupational safety and health policies are published on the Eisai website as the “Charter of Business Conduct of Eisai Network Companies,” “Eisai Global Code of Conduct for Business Partners,” “Human Rights Policy,” and “Eisai Network Companies (ENW) Safety & Health Policies.” Our non-discrimination policy on employment and profession is published in the Compliance Handbook. https://www.eisai.com/company/philosophy/index.html https://www.eisai.com/sustainability/partner/guidelines/index.html https://www.eisai.com/sustainability/employee/human_rights/pdf/Human%20Rights%20Policy_en.pdf https://www.eisai.com/sustainability/management/compliance/pdf/ehandbook.pdf https://www.eisai.com/sustainability/employee/health_safety/index.html

    Prevention

    2. In the course of the reporting period, has the company engaged with affected stakeholders or their legitimate representatives in relation to the following labour rights issues?

    No engagement on this topic

    To better understand the risks/ impacts in question

    To discuss potential ways to prevent or mitigate the risks/ impacts in question

    To agree on a way to prevent/ mitigate the risks/ impacts in question

    To assess progress in preventing/ mitigating the risks /impacts in question

    To collaborate in the prevention/ mitigation of the risks/ impacts in question

    Other (Please provide additional information)

    Freedom of association and the effective recognition of the right to collective bargaining

    Forced labour

    Child labour

    Non-discrimination in respect of employment and occupation

    Occupational safety and health

    Working conditions (wages, working hours)

    Optional comment
    Eisai Co., Ltd. and the labor union communicate regularly on employee-related topics and address issues in a timely manner. Eisai discloses on its website the Eisai Global Code of Conduct for Business Partners. Based on this Code of Conduct, we work with relevant stakeholders to prevent labor rights issues. https://www.eisai.com/sustainability/partner/guidelines/index.html In accordance with the Industrial Safety and Health Act, business establishments with 50 or more employees in Japan, including Eisai Co., Ltd. have established a Safety and Health Committee, where representatives of the company and the labor union hold regular discussions on occupational safety and health issues. In addition, Eisai established a company-wide environmental safety committee, in which representatives of the labor union also participate, to formulate annual plans for further quality improvement to eliminate occupational accidents at the company-wide level, monitor issues, and review the results semi-annually. In 2022, Eisai has decided to establish a new information sharing system to prevent the recurrence of occupational accidents and incidents by sharing this information with Eisai network companies worldwide. In the event of occupational accident, traffic accident or other incidents, Eisai Co., Ltd. promptly notifies the relevant departments of the Eisai Network, shares with them such information, and reflect them in activities to prevent recurrence.

    3. What type of action has the company taken in the reporting period with the aim of preventing/mitigating the risks/impacts associated with this labour rights issue?

    Provided internal training/ capacity building for the direct workforce

    Building capacity among relevant business relationships (e.g., partners, suppliers, clients, etc.)

    Conducting an audit process and/or corrective action plan

    Collective Action with peers or other stakeholders, in particular workers' organizations, to address the issue

    Collaboration with governmental or regulatory bodies

    Other (Please provide additional information)

    No action within reporting period

    Freedom of association and the effective recognition of the right to collective bargaining

    Forced labour

    Child labour

    Non-discrimination in respect of employment and occupation

    Occupational safety and health

    Working conditions (wages, working hours)

    Optional comment
    Eisai’s relationship with the Labor Union and its occupational health and safety policies are published on the Eisai website. https://www.eisai.com/sustainability/employee/health_safety/index.html The Eisai Labor Union in Japan belongs to the Federation of Pharmaceutical and Cosmetic Industry Labor Unions, one of the national labor federations in Japan. Our policy on forced labor is published on the Eisai website as the Charter of Business Conduct of Eisai Network Companies. https://www.eisai.com/company/philosophy/index.html Eisai has established a set of goals and action plans entitled “Eisai Diversity & Inclusion 2021”. Based on the belief that accelerating gender diversity in Japan is critical to spurring organizational innovation, Eisai Co., Ltd. aims to increase the ratio of female employees and managers to more than 30% by March 31, 2031. https://www.eisai.com/sustainability/employee/diversity/index.html In order to foster compliance and high ethical standards, Eisai publishes the Compliance Handbook, which outlines the Eisai Network Companies’ (ENW) Charter of Business Conduct and the Code of Conduct. The Handbook is available in 16 languages for all officers and employees of the Eisai network companies. Occupational health and safety policies are published on the Eisai website. https://www.eisai.com/sustainability/employee/health_safety/index.html Eisai operates in compliance with the National Action Plan on Business and Human Rights and joins the Joining PSCI (Pharmaceutical Supply Chain Initiative) to tackle supply chain sustainability issues. Since FY2020, Eisai Co., Ltd. has obtained agreement to comply with the Code of Conduct from major domestic and overseas suppliers of direct materials, covering 99% of the transactions on a transaction value basis, and most suppliers have completed EcoVadis’ sustainability due diligence. No company was identified as high risk based on the assessment. https://www.eisai.com/sustainability/partner/sustainableprocurement/index.html Eisai provides e-learning programs for all employees to learn about labor rights issues.

    4. Who receives training for the following labour rights issues?

    No training provided

    Select employees

    All employees

    Contractors

    Direct suppliers of the organization

    Indirect suppliers of the organization

    Other – such as partners, clients, etc.

    Freedom of association and the effective recognition of the right to collective bargaining

    Forced labour

    Child labour

    Non-discrimination in respect of employment and occupation

    Occupational safety and health

    Working conditions (wages, working hours)

    Optional comment
    Employees regularly learn about labor rights issues through the Compliance Handbook, e-learning, and training. https://www.eisai.com/sustainability/employee/human_rights/index.html The Compliance Handbook outlines Eisai Network Companies’ (ENW) Charter of Business Conduct and the Code of Conduct and is intended to foster compliance awareness. It is intended for all officers and employees of the Eisai Network Companies and is available in 16 languages. https://www.eisai.com/sustainability/management/compliance/pdf/ehandbook.pdf

    5. How does the company assess progress in preventing/mitigating the risks/impacts associated with the following labour rights issues?

    No monitoring of progress

    Review issues on ad-hoc basis

    Set annual targets/ goals, track progress over time (internal programs only)

    Set annual targets/ goals, track progress over time (internal and external programs)

    Other (Please provide additional information)

    Freedom of association and the effective recognition of the right to collective bargaining

    Forced labour

    Child labour

    Non-discrimination in respect of employment and occupation

    Occupational safety and health

    Working conditions (wages, working hours)

    Optional comment
    Employees regularly learn about labor rights issues through the Compliance Handbook, e-learning and training. Eisai has been conducting EcoVadis sustainability assessment of its suppliers since FY2020, and will continue to assess their progress on a regular basis. https://www.eisai.com/sustainability/partner/sustainableprocurement/index.html Occupational health and safety policies are published on the Eisai website. https://www.eisai.com/sustainability/employee/health_safety/index.html In 2022, Eisai has decided to establish a new information sharing system to prevent the recurrence of occupational accidents and incidents by sharing this information with Eisai network companies worldwide. In the event of occupational accident, traffic accident, and other incidents, Eisai Co., Ltd. promptly informs the relevant departments of the Eisai Network, shares the information, and reflect the learnings in measures to prevent recurrence.

    Performance

    6. What is the percentage of employees covered under collective bargaining agreements?

    Percent of employees (%)

    Unknown

    Employees covered under collective bargaining (%)

    Optional comment
    Eisai’s relationship with the Labor Union and occupational health and safety policies are published on the Eisai website. https://www.eisai.com/sustainability/employee/health_safety/index.html The percentage of employees covered by the collective bargaining agreement is not disclosed.

    7. What is the percentage of employees in a trade union or other workers' organization?

    Percent of employees (%)

    Unknown

    Not applicable (Please provide additional information)

    Employees in a trade union or on a worker committee (%)

    Optional comment
    Eisai’s relationship with the Labor Union and occupational health and safety policies are published on the Eisai website. https://www.eisai.com/sustainability/employee/health_safety/index.html The percentage of employees in a trade union or other workers' organization is not disclosed.

    8. In the course of the reporting period, what was the percentage of women in:

    Percent of women (%)

    Unknown

    Senior leadership level position

    28

    Non-executive board

    9.1
    Optional comment
    The ratio of female managers to the number of employees in the Eisai Group is 28% in FY2020, as disclosed on our website. (P1) https://www.eisai.com/sustainability/management/pdf/eesg_index.pdf As of June 17, 2022, Eisai’s management consists of 11 members of the board of directors (including one 1 female member). The ratio of female directors to directors in the Eisai Group is 9.1%. https://www.eisai.com/ir/stock/meeting/pdf/einv110_all.pdf (P12)

    9. What was the average ratio of the basic salary and remuneration of women to men (comparing jobs of equal value) during the reporting period?

    Salary ratio (%)

    Unknown

    Choose to not disclose

    Women / Men (%)

    Eisai is preparing to disclose the requested information by the end of this year.

    10. In the course of the reporting period, how frequently were workers injured (injuries per hour worked)?

    Frequency of injury

    Unknown

    Choose to not disclose

    Frequency of injury

    Eisai Co., Ltd. does not disclose the frequency of injuries per work hour.　The number of occupational accidents (total of non-lost-time accidents, lost-time accidents, and traffic accidents) for Eisai Co., Ltd. was 21 in FY2020, as disclosed on the company’s website. (P2) https://www.eisai.com/sustainability/management/pdf/eesg_index.pdf In 2022, Eisai decided to establish a new system to share information across the Eisai global network with the aim of preventing the recurrence of occupational accidents and incidents. This new system will enable Eisai Co., Ltd. to promptly notify each Eisai Network Company of information on occupational accidents, traffic accidents and other incidents, and to reflect the learning in measures to prevent recurrence.

    11. In the course of the reporting period, what was the company’s incident rate?

    Incident rate

    Unknown

    Choose to not disclose

    Incident rate

    0
    Optional comment
    Regarding frequency of work-related injuries that resulted in more than 4 days of absence from work (per million actual hours worked), Eisai Co., Ltd. has zero cases in FY2020, as disclosed on our website. (P2) https://www.eisai.com/sustainability/management/pdf/eesg_index.pdf In 2022, Eisai decided to establish a new system to share information with Eisai Network Companies with the aim of preventing the recurrence of occupational accidents and incidents. This new system enables Eisai Co., Ltd. to promptly notify each Department in charge of occupational accidents, traffic accidents, and incidents in the Eisai Network, shares them the information, and reflect the learnings in measures to prevent recurrence.

    Response and Reporting

    12. In the course of the reporting period, has the company been involved in providing or enabling remedy where it has caused or contributed to the adverse impact associated with the following labour rights issues?

    Yes

    No

    Choose to not disclose

    Not applicable (Please provide additional information)

    Freedom of association and the effective recognition of the right to collective bargaining

    Forced labour

    Child labour

    Non-discrimination in respect of employment and occupation

    Occupational safety and health

    Working conditions (wages, working hours)

    Optional comment
    FY2021, Eisai has no adverse impact associated with labor rights issues. Since FY2020, we have obtained agreement to comply with the Code of Conduct from major domestic and overseas suppliers of direct materials of Eisai Co., Ltd. (covering 99% of transactions on transaction value basis), and EcoVadis sustainability assessments were conducted for the majority of them. Of the suppliers that participated in the assessment, none were identified as high risk. https://www.eisai.com/sustainability/partner/sustainableprocurement/index.html

    13. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the labour rights principles, including any challenges faced and actions taken towards prevention and/or remediation.

    Currently, we have not identified any issues related to labor rights or working environment, but in the future, we plan to expand our assessment of suppliers to include those at our global sites from viewpoint of sustainability including their working environment.

  • Environment

    Commitment

    1. Does the company have a formal policy on the following environmental topics?

    No, and we have no plans to develop a policy

    No, but we plan to in the next two years

    Yes, included within a broader policy

    Yes, articulated as a stand-alone policy

    Not applicable (Please provide additional information)

    Climate Action

    2021

    Water

    2021

    Oceans

    This topic is not material.

    Forests / Biodiversity / Land Use

    2020

    Air Pollution

    2021

    Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)

    2021

    Energy & Resource Use

    2021
    Optional comment
    Press Release on Eisai’s Statement of Commitment for Carbon Neutrality by 2040: https://www.eisai.com/news/2021/news202134.html Biodiversity Guidelines: https://www.eisai.com/sustainability/environment/biodiversity_conservation/index.html Environmental Vision and Environmental Protection Policy: https://www.eisai.com/sustainability/environment/vision/index.html Overall Environmental Activities: https://www.eisai.com/sustainability/environment/index.html

    1.1. For each environmental policy, is it:

    Aligned with international environmental standards?

    Publicly available?

    Approved at most senior level of the company?

    Applied to the company’s own operations?

    Applied to the company’s supply chain and/or other business relationships?

    Developed involving environmental expertise from inside and outside the company?

    Other (Please provide additional information)

    Climate Action

    Water

    Oceans

    Forests / Biodiversity / Land Use

    Air Pollution

    Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)

    Energy & Resource Use

    Prevention

    2. In the course of the reporting period, has the company engaged with affected stakeholders or their legitimate representatives in relation to the following environmental issues?

    No engagement on this topic

    To better understand the risks/ impacts in question

    To discuss potential ways to prevent or mitigate the risks/ impacts in question

    To agree on a way to prevent/ mitigate the risks/ impacts in question

    To assess progress in preventing/ mitigating the risks/ impacts in question

    To collaborate in the prevention/ mitigation of the risks/ impacts in question

    Other (Please provide additional information)

    Climate Action

    Water

    Oceans

    This topic is not material.

    Forests / Biodiversity / Land Use

    Air Pollution

    Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)

    Energy & Resource Use

    Optional comment
    Please visit page 8 of the Environmental Report 2021 for Eisai’s Environmental Communication. https://www.eisai.com/ir/library/annual/pdf/epdf2021er.pdf

    3. What type of action has the company taken in the reporting period with the aim of preventing/mitigating the risks/impacts associated with these environmental topics?

    Provided internal training/ capacity building for the direct workforce

    Building capacity among relevant business relationships (e.g., partners, suppliers, clients, etc.)

    Conducting an audit process and/or corrective action plan

    Collective Action with peers or other stakeholders to address the issue

    Collaboration with governmental or regulatory bodies

    Other (Please provide additional information)

    No action within reporting period

    Climate Action

    Water

    Oceans

    Forests / Biodiversity / Land Use

    Air Pollution

    Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)

    Energy & Resource Use

    Optional comment
    Ocean is not a material topic to Eisai. Please visit page 7 of the Environmental Report 2021 for Eisai’s structure to promote environmental management. https://www.eisai.com/ir/library/annual/pdf/epdf2021er.pdf

    4. How does the company assess progress in preventing/mitigating the risks/impacts associated with the following environmental topics?

    No monitoring of progress

    Review issues on ad-hoc basis

    Set annual targets/ goals, track progress over time (internal programs only)

    Set annual targets/ goals, track progress over time (internal and external programs)

    Other (Please provide additional information)

    Climate Action

    Water

    Oceans

    This topic is not material.

    Forests / Biodiversity / Land Use

    Air Pollution

    Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)

    Energy & Resource Use

    5. In the course of the reporting period, has the company been involved in providing or enabling remedy for any actual impacts associated with the following environmental issue(s)?

    Yes

    No

    Choose to not disclose

    Not applicable (Please provide additional information)

    Climate Action

    Water

    Oceans

    Forests / Biodiversity / Land Use

    Air Pollution

    Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)

    Energy & Resource Use

    Climate Action

    6. What were the company’s gross global greenhouse gas emissions for the reporting period?

    Scope 1 Emissions

    Emissions (tCO2e)

    Scope 2 Emissions

    Emissions (tCO2e)

    Scope 3 Emissions

    Emissions (tCO2e)

    Optional comment
    Scope 1 Emissions were 45009 tCO2e. Scope 2 Emissions were 36563 tCO2e. Scope 3 Emissions were 579173 tCO2e, including category 1 global emissions and emissions from other categories in Japan. This is data of FY2020 which ended March 31, 2021.

    6.1. Which Scope 3 categories are included in the organization’s scope 3 emissions calculation?

    7. What percentage of the company's revenue was invested in R&D of low-carbon products/services during this reporting period?

    Percent of revenue (%)

    Optional comment
    Eisai has stopped using shrink wrap (shrink film) for OTC products in order to reduce the amount of plastic used. However, the amount invested in R&D of these products is not known.

    8. Has the organization acted to support climate change adaptation and resilience?

    Energy / Resource Use

    9. Please report the company's renewable energy consumption as a percentage of total energy consumption in the reporting period.

    % of total energy consumption

    54.1
    Optional comment
    This is FY2020 data.

    Technology

    10. What percent of the company's revenue came from environmentally friendly products / services during this reporting period?

    Percent of total revenue (%)

    Optional comment
    Eisai has stopped using shrink wrap (shrink film) for OTC products in order to reduce the amount of plastic used. However, the percent of the revenue coming from these products is not known.

    Sector-specific Questions

    11. Which sector(s) does the company operate in? If diversified, choose top 3 by revenue.

    Sector-specific: Water

    12. Please provide details regarding the company's water withdrawal and consumption (own operations) during the reporting period.

    Water withdrawal (volume of water in megaliters):

    Mega-liters

    Unknown

    Not applicable (Please provide additional information)

    Total

    3525

    Groundwater:

    3061

    Surface water:

    No direct withdrawal from this category.

    Rainwater:

    No direct withdrawal from this category.

    Wastewater:

    81.2

    Percentage of water withdrawn in regions with high or extremely high water stress (%)

    6

    Water consumption (volume of water in megaliters):

    Mega-liters

    Unknown

    Not applicable (Please provide additional information)

    Total

    619

    Groundwater:

    Surface water:

    Rainwater:

    Wastewater:

    Percentage of water consumed in regions with high or extremely high water stress (%)

    6
    Optional comment
    This is FY2020 data. There was withdrawal of 464 megaliters from third party sources, which does not match any of the listed categories. The total withdrawal includes water withdrawal of 2,771 Mega-liters at Kawashima Plant, Japan. At Kawashima Plant, the groundwater was pumped up and discharged as the source of regional rivers based on a request from the local government. The actual amount of water used in the manufacturing process and the amount of wastewater were both 184 Mega-liters in FY2020. This was only about 7% of water withdrawal at Kawashima plant.

    13. Please provide details about the company’s water intensity of products in regions with high or extremely high water stress.

    Water intensity of products (cubic meter/$):

    Optional comment
    We report water productivity (sales/water withdrawal) in the environment report. https://www.eisai.com/ir/library/annual/pdf/epdf2021er.pdf

    Sector-specific: Waste

    18. Please report the company's total weight of waste generated in metric tonnes during the reporting period.

    Waste Generated (t)

    5430
    Optional comment
    This is FY2020 data. Details are available in Eisai Environmental Report. https://www.eisai.com/ir/library/annual/pdf/epdf2021er.pdf

    19. Please report the percentage of the company's waste that was hazardous waste (i.e., hazardous waste ratio) during the reporting period.

    Hazardous Waste Ratio (%)

    2.7
    Optional comment
    This is FY2020 data. Eisai measures the volume of hazardous wastes globally. However, only the volume of infectious wastes are tracked in Japan. (other types of hazardous wastes generated in Japan are not counted.)

    20. Please report the company's estimated metric tonnes of single-use plastic consumed wherever material along the value chain during the reporting period.

    Single-use plastics (tonnes)

    Overall Environment

    21. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the environment principles, including any challenges faced and actions taken towards prevention and/or remediation.

    Eisai has made efforts to reduce Greenhouse Gas Emissions and address Climate-Related risks. Eisai has also made efforts aimed at sustainable use of water. Eisai plans to set medium- to long-term targets to address environmental issues including water use, biodiversity, and circular use of resources. https://www.eisai.com/ir/library/annual/pdf/epdf2021vcr.pdf

  • Anti-corruption

    Commitment

    1. Does the company have an anti-corruption compliance programme?

    Eisai regularly provides e-learning and training materials to all officers and employees to promote anti-corruption. All Eisai officers and employees are required to sign and submit a written oath (Compliance Certification) each year. The last review of this programme was in 2021.

    2. Does your company have policies and recommendations for employees on how to act in case of doubt and/or in situations that may represent a conflict of interest, e.g. with regard to gifts and hospitality, donations, sponsorship, or interactions with public officials?

    Optional comment
    Eisai has established guidelines that set forth specific codes of conduct regarding interactions with outside parties, including healthcare professionals, and comply with the law and regulations of each region.

    Prevention

    3. Who receives training on anti-corruption and integrity?

    3.1. How often is such training provided?

    One time only

    Every year

    Every two or more years

    We do not collect this data

    All employees

    Select employees

    Contractors

    Direct suppliers of the organization

    Other – such as partners, clients, etc.

    Indirect suppliers of the organization

    4. Does the company monitor its anti-corruption compliance programme?

    Response and Reporting

    5. Please report the company's total number and nature of incidents of corruption during the reporting year.

    Number of incident(s)

    Unknown

    Choose to not disclose

    Confirmed during the current year, but related to previous years

    Eisai does not disclose the total number or nature of corruption incidents/cases during the reporting year.

    Confirmed during the current year, and related to this year

    Eisai's total number and nature of incidents of corruption during the reporting year, and related to this year are not publicly disclosed.

    6. Within the reporting period, what measures has the company taken to address suspected incidents of corruption independently or in response to a dispute or investigation by a government regulator?

    Eisai separates the roles of the Board of Directors and the Executive Board (Corporate Officers). The Board of Directors is responsible for overseeing business execution, while the Executive Board is responsible for business execution.　Any questions or incidents arising in the course of business execution are regularly reported to the Board of Directors and the Audit Committee for timely consideration.

    7. Does your company engage in Collective Action against corruption?

    Eisai is a member of the International Federation of Pharmaceutical Manufacturers & Associations (IFPMA). Eisai operates in compliance with the IFPMA Code of Practice to promote corrective action against corruption. https://www.ifpma.org/wp-content/uploads/2018/09/IFPMA_Code_of_Practice_2019.pdf

    8. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the anti-corruption principle, including any challenges faced and actions taken towards prevention and/or remediation.

    The Compliance Counter serves as a point of contact for the whistleblower system in Eisai’s global network. Eisai has established a new Compliance Reporting Counter in Japan to enable our business partners to consult and report any fraudulent activities and violations of laws and regulations related to our business. In the future, Eisai plans to expand business partners compliance reporting contact points from Japan to global.　Eisai regularly conducts e-learning for all employees globally to promote corrective actions against corruption. Eisai plans to conduct due diligence on new business partners globally under company-wide uniform rules.