Sustainability at Santen
Based on Santen's CORE PRINCIPLE "Tenki ni sanyo suru," Santen not only contributes to the sustainable development of society but also aims to achieve its own sustainable growth.
Sustainability Policy
Based on Santen's CORE PRINCIPLE: "Tenki ni sanyo suru," Santen not only contributes to the sustainable development of society but also aims to improve corporate value over the medium to long term.
Sustainability Promotion System
Santen established a Sustainability Committee, chaired by the CEO and composed of executive officers from related divisions. The committee meets at least twice a year, deliberating and determining Group-wide policies and targets for sustainability promotion activities. These targets are based on the CORE PRINCIPLE, sustainability policy, Group strategies, and social issues that include human rights, labor, environment, and anti-corruption.
The Sustainability Committee is also responsible for specific sustainability initiatives and deliberations on important related matters.
We communicate decisions and other information through the executive management of each department. Matters related to Group management strategies are proposed to the Executive Committee for approval, and important matters are referred to the Board of Directors.
The Global Head of Sustainability (executive officer) oversees company-wide sustainability activities.
Santen's Materiality
Santen identifies and engages with materialities.
| Major Category | Materiality | Definition |
|---|---|---|
Development and Stable Supply of Socially Significant Products and Services (Happiness with Vision)
| Market Penetration of Products with Social Significance | Respond to unmet needs through product and service innovations in the field of ophthalmology, contributing to patients through the pursuit of commercial excellence(*) |
| Evaluation and Management of the Supply Chain | Contribute to the sustainable development of society and reduce risks in product supply through sustainable procurement | |
| Assurance of Quality and Safety, and Establishment of an Appropriate Supply System | Establish systems to ensure product quality and safety and to supply necessary quantities when needed | |
| Providing Appropriate Information on Products and Services | Conduct ethical marketing activities in compliance with laws and regulations and provide valuable information and services | |
| Encouragement of an Organizational Culture that Promotes Value Creation
| Promoting Diversity, Equity & Inclusion | Pursue value creation through mutual respect across diverse human resources |
| Building a High-Value-Added and Highly Productive Work Environment | Ensure the physical and mental health of employees and safe work environments, while leveraging new work styles to improve productivity and the ability to create added value | |
| People Development and Promotion | Hire, train, and promote the best human resources, assigning said professionals to the right places at the right time from a medium- to long-term perspective | |
Strengthening Governance, Contributing to the Realization of Fair and Equal Society
| Corporate Governance | Establish a sustainable governance structure through stronger Board effectiveness and succession planning |
| Compliance | Practice corporate activities based on a high sense of ethics beyond legal compliance | |
| Risk Management | Establish a system to address various risks accurately, including risks associated with unpredictable circumstances | |
| Respect for Human Rights | Understand human rights issues and demand respect for human rights throughout the value chain | |
Conservation of the Global Environment
| Measures against Climate Change | Implement climate change mitigation measures and adaptive measures for business viability |
| Environmental Load Reduction | Reduce the environmental impact of our business activities and products |
- Commercial Excellence at Santen is our conviction to achieve the ideal state of ophthalmology care for patients. From product development to patient outcomes, continuous improvement of our corporate-wide capabilities will allow us to bring maximised value to patients through our products. Developing a consistent cross-functional strategic framework with tight alignment between strategy, planning and execution, underpinned by rigorous KPI monitoring and PDCA cycle management, will help us realise this ideal state.
Materiality Identification Process
Step 1: List up social issues
We compiled an extensive list of social issues based on international guidelines, including the 10 principles of the United Nations Global Compact and SDGs, as well as on survey items of ESG assessment institutions in December 2019.
Step 2: Set priorities for social issues
We comprehensively evaluated social issues from two standpoints, namely, their importance to society and their importance to our company, and narrowed the issues down to those of high priority.
Step 3: Integrate the the long-term vision into Materiality
Looking ahead to 2030 and beyond, we examined the relationship between our long-term strategy to address social issues related to people's eye health, and the issues on the above ESG axis (social issues).
Step 4: Confirm the validity
We confirmed the validity of the identification process and the selected materialities through not only discussion within in-house meeting including management but also dialogue with outside stakeholders such as experts and investors.
Step 5: Identify Materialities
Through discussions with the Directors, we identified 13 materialities as Santen's Materiality and disclosed in 2020. We plan to periodically review the materialities in light of the progress of our initiatives and changes in the social environment.
Step 6: Set KPIs
In May 2021, in conjunction with the formulation of the Medium-Term Management Plan (MTP2025), targets were also set for key materiality items, which were disclosed after deliberation by the Board of Directors. In addition, more detailed quantitative targets were set in July 2022.
Step 7: Review and Revise Materialities
In March 2023, we reviewed our 13 materialities. The Board of Directors identified the two most important materialities at this stage, based on discussions with external experts, evaluation criteria used by ESG evaluation organizations, and discussion with internal departments such as risk and strategy. The Board reassessed and re-prioritized each materiality from the perspectives of the Company* and society.
- Prioritized according to projected impact of related risks and opportunities on profit: Major (more than 3 billion yen), medium (between 1 billion yen and 3 billion yen), and minor (less than 1 billion yen)
Strategies for the Most Important Materialities
We assessed the challenges we face currently based on the assumptions of our new medium-term management plan, revised in April 2023. We identified the Market Penetration of Products with Social Significance and People Development and Promotion as the most important issues having the greatest potential impact on medium- to long-term profits.
Market Penetration of Products with Social Significance
The cornerstone of our growth strategy and the very reason for our existence as a company is to respond to unmet needs through product and service innovations in the field of ophthalmology, contributing to patients through the pursuit of commercial excellence. We strive to achieve wider market adoption of our valuable products based on the strategies outlined in our new medium-term management plan.
Risks
- The impact on profits could be significant if we fall behind competitors in either of the following areas and are unable to gain market share due to a decline in competitiveness in relevant markets.
- Addressing the needs of patients faced with issues relating to inadequate early detection, diagnosis, or adherence to treatment.
- In the medium- to long-term, market penetration activities for patients who do not have access to medical care due to inadequate healthcare systems in developing countries, etc.
- Drastic changes in the market environment due to government policies, such as not including the Company’s mainstay products in the volume-based purchasing list in China and other countries, could have a major impact.
Opportunities
- In the short term, we will strengthen our activities aimed at commercial excellence in existing markets, provide information that creates value in medical processes, seek further product market penetration, and better treatments.
- In the medium term, we will continue to pursue commercial excellence, and provide products for underserved diseases such as myopia and ptosis.
- In the long term, we will continue to develop and offer new products and services to serve more patients.
Response Measures
- Improve treatment adherence rates for chronic diseases, such as glaucoma and dry eye, in existing markets.
- Introduce new products that address unmet needs, develop and expand sales channels in the field of out-of-pocket medical treatments for diseases such as myopia and ptosis, areas not previously addressed by the Company.
- Eliminate bottlenecks in the patient journey from diagnosis through ongoing treatment for diseases and in regions with large numbers of untreated patients, thereby expanding access to medical care for more patients.
External Impact
Reduce social and economic opportunity losses around the world arising from eye diseases and eye trouble. Minimize economic losses due to vision impairment—estimated at US$410.7 billion(*1) annually—to the greatest extent possible
- In the short term, contribute to the treatment of more patients in existing markets.
- In the medium to long term, contribute to the treatment of patients with myopia, ptosis, and other underserved or unmet medical needs, as well as patients in countries and regions we have not served in the past.
KPI (FY2025)
- Aiming to contribute to more than 50 million patients (*2)
People Development and Promotion
Our most important assets are people who understand our CORE PRINCIPLE and strategy, and who aim to achieve the Happiest Life for every individual, through the Best Vision Experience. It is essential that we educate, train, and promote such people to responsible positions.
We consider diversity as we systematically develop and promote employees who are people- and patient-centered, who contribute to the sustainable growth of the Company on a global basis, and who are ready to rise to the most appropriate positions at the right time and place.
Risks
- The Company could face major obstacles in employee motivation and business growth if it does not strategically and systematically train, reskill, and promote employees from within, in addition to being able to recruit personnel from outside who can contribute immediately.
- A strategic portfolio of human resources is essential. Failure to hire the right people at the right time and assign them to the right place could lead to significant business losses.
- Human resource losses due to an increase in turnover or other factors, could lead to organizational dysfunction.
Opportunities
- A strategic and systematic training system to increase engagement and attract talent may contribute significantly to profits and reduce the cost of sourcing talent from external sources.
- Increased operational productivity could have a positive impact on earnings
Response Measures
- Develop human resources with a deep understanding of the CORE PRINCIPLE, WORLD VISION, and the strengths we need, and who can execute our strategy globally.
- Provide people management education to improve leadership skills for those in key management positions responsible for strategy planning, implementation, and reform.
- Clarify successor candidates for key positions (*3) and implement specific actions for systematic recruitment, training, and assignments.
- Promote women to managerial positions in Japan as one specific component in diversity.
External Impact
Contribute to society through human resources mobility
- The mobility of highly skilled human resources resulting from people development will have a positive impact on society.
KPIs(FY2025)
- Complete people development program restructuring in FY2023, and have all employees complete the training program by FY2025.
- Evaluate and coach all managers in key positions by FY2025
- Clarify successor candidates for key positions by FY2023 and implement specific measures to systematically secure, train, and assign successor candidates by FY2025.
- Raise the ratio of female managers in Japan to at least 20% by FY2025.
- The Lancet Global Health Commission on Global Eye Health: vision beyond 2020
- Estimated total no. of patients to which Santen contributed (disease areas: inflammation/allergies, cornea, glaucoma, cataracts) in FY2019 was approx. 43 million, calculated based on JMDC's estimated total no. of patients for Santen's Rx products and Santen's shipment data. We revised our target when the new medium-term management plan was formulated.
- Key positions: Major roles in the formulation and execution of business strategy, major roles in each function and region.
Metrics and Targets
For each materiality, we have set KPIs toward FY2025, the final year of the new medium-term management plan, and disclosed progress.
| Materiality | KPI (FY2025) | Progress in FY2023 | Person in Charge |
|---|---|---|---|
Market Penetration of Products with Social Significance |
|
| Global Head of Corporate Strategy |
| Evaluation and Management of the Supply Chain |
|
| Chief Product Supply Officer |
Assurance of Quality and Safety, and Establishment of an Appropriate Supply System |
|
| Chief Product Supply Officer |
Providing Appropriate Information on Products and Services |
|
| Chief Compliance Officer and each Area Head |
Promoting Diversity, Equity & Inclusion |
|
| Global Head of HR |
|
| Global Head of Core Principle & Sustainability | |
Building a High-Value-Added and Highly Productive Work Environment |
|
| Global Head of HR |
People Development and Promotion |
|
| Global Head of HR |
Corporate Governance |
|
| General Counsel |
Compliance |
|
| Chief Compliance Officer |
Risk Management |
|
| Officer in Charge of Crisis Management |
|
| Global Head of D&IT | |
Respect for Human Rights |
|
| Global Head of HR |
Measures against Climate Change |
|
| Chief Product Supply Officer |
Environmental Load Reduction |
|
| Chief Product Supply Officer |
- OTIF (on-time and in-full) shipping: a KPI for logistics or delivery performance within the supply chain, meaning on-time and in-full delivery
- SLA/OLA: SLA is a promise made between the service provider and the service recipient; OLA is a promise made between the parties involved in providing the services
Related to the above metrics, some non-financial indicators are incorporated into the compensation of executives and employees. For example, in FY2023, items such as "people development and promotion" and risk and compliance are reflected in the short-term incentives. (For executives, the DJSI evaluation is also included as a long-term incentive, as an indicator of the results of overall sustainability efforts.)
Official SNS
