Ongoing Environmental Protection Activities

œ Energy Saving and Global Warming Prevention

Implementation of energy saving and global warming prevention activities is regarded as the most important environmental goal of ONO. All our places of business \ production sites, research institutes, and offices \ take energy-saving and power-reducing measures appropriate to the nature of their operations. Efforts are made to reduce greenhouse gas emissions from our business activities with the aim of achieving our medium-term environmental target of a more than 23% reduction in CO2 emissions (energy-derived CO2 emissions from production and research sites) in FY2020 compared to FY2005.
In FY2016, with the construction of the Minase Research Institutefs new (third) research building, CO2 emissions from our production and research sites increased to 24,000 tons, but decreased by 10.1% compared to 26,700 tons in FY2005. We will continue to work towards our targets for FY2020.

* We respond to the CDP climate change survey on the risks, impact, etc. of climate change.

Energy-derived CO2 Emissions

Note: Sites where CO2 emission data were collected: Fujiyama Plant, Joto Plant, Minase Research Institute,Fukui Research Institute, Tsukuba Research Institute, Head Office, branches, sales offices etc.
CO2 emissions are calculated according to the methods below.
CO2 emissions = Purchased electricity (10,000 kWh) x the Federation of Pharmaceutical Manufacturersf Associations of Japan tracking indicator (1.152 tons-C/10,000 kWh) ~ 44 / 12+ ƒ° (Fuel consumption ~ Unit calorific value ~ Carbon emission indicator ~44 / 12)
We use the value of the Warming Countermeasures Act as the calorific power unit and carbon emission indicator. However, we use the Federation of Pharmaceutical Manufacturersf Associations of Japan tracking indicator (FY2005 values) as the electricity CO2 emissions volume calculation. This is to enable proper evaluation of ONOfs initiatives, after removing the effect of external factors such as nuclear power plant operation status.
The figures in the base year and the target value are those in the production and research sites.

Energy Consumption

Note: Sites where energy consumption data were collected: Fujiyama Plant, Joto Plant, Minase Research Institute, Fukui Research Institute, Tsukuba Research Institute, Head Office, branches, sales offices,etc.

1) Measures to Save Energy

ECompany-Wide Initiatives

ONO is a specified business operator under Japanfs Act on the Rational Use of Energy (Energy Saving Act), and every year we report our energy consumption and our mid- to long-term energy reduction plan to the Ministry of Economy, Trade and Industry (METI) and the Ministry of Health, Labor and Welfare (MHLW). Across the entire company, we do everything possible to reduce the load on energy usage. For example, we promote Cool Biz and Warm Biz, initiatives under which employees dress casually in summer and warmly in winter so that less air conditioning and heating are needed; we encourage employees g2 up 3 downh to walk up two flights of stairs and down three flights instead of using the elevator; and we save electricity in summer and winter by, for example, turning off heated toilet seats, hot water heaters, and some lights.

EInitiatives at Production Sites

ONOfs production sites conduct energy management based on their energy management rules. The Fujiyama Plant has been designated as a specified business operator under the Energy Saving Act, and it reports its energy consumption and energy reduction plan every year to METI and MHLW.
Major initiatives in FY2016 included upgrading lighting to LEDs. We also continued to repair defective equipment and conduct preventive maintenance to reduce unnecessary energy usage.

E Initiatives at Research Institutes

ONOfs research institutes conduct energy management based on their energy management rules. Air conditioning was controlled by, for example, managing operation schedules, introducing the outside air for air conditioning during intermediate seasons, and adjusting the temperature and humidity settings to the suitable levels for the respective seasons. All of the three institutes are also designated as specified business operators under the Energy Saving Act, and therefore report their energy consumption and energy reduction plan every year to METI and MHLW.
Major initiatives in FY2016 included upgrading heat source appliance and air conditioning equipment in the laboratories to high-efficiency models, as well as upgraded lighting to LEDs in office areas, laboratories, and outdoor lamps.

EInitiatives in Other Divisions

The Sales and Marketing Division encourages employees to practice eco-driving, and the Division has upgraded approximately 90% of its commercial cars (except ones with cold climate specifications) to hybrid vehicles, as of the end of FY2016.

2) Measures to Reduce Greenhouse Gas Emissions and Achieve Power Load Leveling

EIncorporating Renewable Energy

Solar power, a form of renewable energy, is an effective way to reduce greenhouse gas emissions, since it does not need to release any when generating electricity. A solar power generation system was installed on the ONO Head Office building in FY2003 and at the Minase Research Institute in FY2015.

…–³£Œ¤‹†Š@‘¾—zŒõ”­“dƒpƒlƒ‹ …–³£Œ¤‹†Š@‘¾—zŒõ”­“d—ʏWŒvƒVƒXƒeƒ€
Solar panels at the Minase Research Institute Solar power monitoring system at the Minase Research Institute

EFuel-Related Initiatives

By switching from fuels such as heavy oil and kerosene to utility gas and natural gas (LNG), the same amount of energy can be obtained but with fewer CO2 emissions. Therefore, switching to these cleaner fuels results in fewer greenhouse gas emissions.
We have been switching boiler fuel to utility gas at factories where utility gas can be supplied. The Joto Plant and Fujiyama Plant have switched fuels in FY1994 and FY2012, respectively. In addition, the air ratio is adjusted at the time of maintenance to improve the combustion efficiency and thereby reduce CO2 emissions.
The Minase and Tsukuba Research Institutes have traditionally used utility gas as boiler fuel to prevent air pollution. In the course of annual maintenance, the air ratio is adjusted to maintain efficient combustion and control CO2 emissions. We constructed an LNG satellite station at the Fukui Research Institute to switch boiler fuel from kerosene to natural gas and reduce CO2 emissions. This station started operations in FY2013.

EPower Load Leveling

In Japan, due to stoppages of nuclear power plants, the revised Energy Saving Act, which went into effect in FY2014, included provisions for cutting peak electricity usage in the summer and winter\a process known as power load leveling. ONO is implementing company-wide energy-saving measures (such as turning off heated toilet seats, hot water heaters, and some lights) in the summer and winter, and our major bases are conducting the following measures to achieve power load leveling.
The Fujiyama Plant uses a cogeneration system (CGS) to generate power for its daily needs, thus easing the amount it needs to obtain from the electric power utility.
At the research institutes, we have been using an ice thermal storage chiller to carry out peak shifts during summer; this system has been in place since before the revised Energy Saving Act went into effect. Other efforts we make to achieve power load leveling include switching from air-cooled chillers to steam boilers to produce hot water for air conditioning in winter.

EEnergy Monitoring

In order to successfully carry out measures to achieve energy efficiency and power load leveling and to reduce CO2 emissions, it is helpful to gather data on energy usage from various facilities, analyze them, and use them to reduce and adjust the load. Through a monitoring system, graphs and flow charts are used to put data into an easy-to-grasp form so that the data can be used in the most effective way.
While the production sites and the research institutes have conventionally measured energy use, we are gradually moving ahead with upgrading our energy monitoring systems, which includes the possible adoption of a comprehensive FEMS (factory energy management system) and a BEMS (building energy management system).

3) CO2 Emissions in the Value Chain (Scope 3)

ONO divides CO2 emissions in the value chain (Scope 3) into 15 categories under the Ministry of the Environmentfs guidelines, and since FY2014 it has been calculating them for sites in Japan. Based on the identification of Scope 3 emissions, we will consider concrete measures to realize a low-carbon society.

Category FY2015 emissions (10,000 tons-CO2) FY2016 emissions (10,000 tons-CO2) Calculation method Notes
Purchased goods and services 7.57 9.71 Purchase cost of raw materials, materials, etc., multiplied by emission factor* Covers production and research sites
Capital goods 4.46 2.70 Amount of capital investment, multiplied by emission factor* -
Fuel- and energy-related activities not included in scope 1 or scope 2 0.14 0.15 Amount of electricity purchased, multiplied by emission factor* -
Upstream transportation and distribution 0.03 0.01 Transport data on deliveries from ONO factories and distribution centers to destinations, multiplied by emission factor* -
Waste generated in operations 0.04 0.03 Weight of each type of industrial waste generated, multiplied by emission factor*
Business travel 0.18 0.22 Business trip allowances, multiplied by emission factor* Covers travels by airplane or Shinkansen bullet train
Employee commuting 0.03 0.03 Employees’ commuting costs, multiplied by emission factor* -
Upstream leased assets 0.33 0.35 Cost of gasoline for leased company cars, multiplied by emission factor* -
Downstream transportation and distribution 0.37 -** CO2 emissions stated in ONO’s CSR report on major wholesale pharmaceuticals, multiplied by percentage of ONO net sales included in all net sales of major wholesale pharmaceuticals **No calculations made for FY2015, because at the time of calculation ONO’s major wholesale pharmaceuticals CSR report had not been released
Processing of sold products Not calculated Not calculated - ONO makes only finished products
Use of sold products Not calculated Not calculated - No energy is consumed during the use of ONO products
End-of-life treatment of sold products 0.02 0.02 Weight of each type of ONO product container or packaging disposed of as waste, multiplied by emission factor* -
Downstream leased assets 0.04 0.03 Floor space of asset (building) owned and rented out categorized by use, multiplied by emission factor* -
Franchises Not calculated Not calculated - ONO does not operate franchises
Investments Not calculated Not calculated - -

* Figures stated in thegEmission Factor Database on Accounting for Greenhouse Gas Emissions throughout the Supply Chain (ver. 2.2),hpublished by the Ministry of the Environment, Government of Japan.

œ Efforts to Conserve Water Resources

While water shortages are becoming a more serious global social issue, we are committed to the conservation of water resources in both production and research activities to fulfill our corporate social responsibility and reduce business risks. Our efforts towards water conservation is also stated in our environmental guidelines. Based on the guidelines, we work for the reduction of water use and strict management of wastewater quality, and continue to work on biodiversity-friendly operations. In addition, we do not perform business activities in any area facing high water stress.

Water Use by Year (FY2012 to FY2016)


* Facilities covered in the collection of water usage data: Fujiyama Plant, Joto Plant, Minase Research Institute, Fukui Research Institute, and Tsukuba Research Institute.

EResponse to water risks

In conducting our business, the availability of good-quality fresh water is an important factor. Therefore, ONO conducts investigations into water-related risks, identifies potential risks that could affect our business, analyzes and evaluates such risks. Although our plants and research institutes in Japan have never experienced restrictions on using good-quality fresh water so far and the risk of trouble related to using such water is considered low under the current circumstances, we identify and evaluate potential impacts and consider countermeasures, in case water quality deterioration or a water shortage occurs due to global environmental changes caused by climate change in the future or the regulations on drainage are reinforced.

Major water risk factors Potential impacts of the risks
Restrictions on use of good-quality fresh water / water shortage Making us unable to use good-quality fresh water, leading to restrictions on activities for production and research
Water quality deterioration Increasing costs for installing purification equipment to improve water quality
Flooding / disasters such as heavy rainfall Causing flood damage to facilities due to flooding from the rivers around our offices and heavy rainfall

We respond to the CDP water survey on the details of water risks, impact, usage, wastewater volume, etc.

œ Waste Management

We promote company-wide initiatives to reduce the amount of industrial waste landfilled. Residues after intermediate treatment were sent to landfill sites where materials can be recycled to reduce the amount of landfilled industrial waste to 0.7 tons in fiscal 2016, which was equivalent to 38.9“ of the amount in the previous fiscal year. We will continue to promote the reduction of landfill waste.

EInitiatives at Production Sites

The production sites work to reduce various wastes generated by and recycle materials in all operations ranging from manufacturing to testing, storage and delivery. The Fujiyama Plant, which promotes gzero waste emissions*h activities, achieved a recycling rate of 100% in FY2010 and has continuously achieved zero waste emissions since then.

EInitiatives at Research Institutes

The research institutes endeavor to reduce the amount of waste generated by separating and recycling waste based on their waste management regulations and waste separation rules. Observation at the intermediate waste treatment facilities and landfill sites run by waste treatment subcontractors are also conducted periodically to ensure our companyfs waste is being disposed of appropriately.
To meet the target of recycling all industrial waste, the research institutes also conduct thermal recycling with certified heat recovery operators and use landfill sites where material recycling is performed. They achieved zero emissions* again in FY2016 and will strive to continue this record.

EInitiatives in Other Divisions

All of our sites separately collect three types of waste paper, and they are recycled into copy paper, toilet paper, and cardboard. In FY2012, we introduced on-demand printing of marketing materials to reduce the stock of such materials in our sales offices. This has trimmed the amount of stock in offices and reduced the amount of unused materials disposed of as waste.

Industrial waste: Amount of the waste generated/landfilled

(Scope : Production and research sites)


* Zero emissions means a final disposal rate (percentage of waste that is landfilled) of less than 1.0%, because industrial waste generated is recycled (calculation of final disposal rate: final landfill disposal amount / amount of waste generated ~ 100). Note that we have not achieved zero emissions for certain materials, such as some hazardous substances and reagent waste, because their safe disposal is a higher priority.

œ Air Pollution and Water Pollution

EInitiatives at Production Sites

The production sites comply with the Japanese Air Pollution Control Act, the PRTR Law, agreements on pollution prevention with local governments, and other related laws and regulations in order to reduce environmental impact. They periodically measure the concentration of exhaust gas and noise from boilers and CGSs as well as wastewater from the plants, in accordance with related laws and other regulations, in order to ensure that levels are within regulatory limits.
They also strive to reduce environmental risk. The PDCA cycle is followed in the plants, and employees are provided with the necessary environmental management training in operations in which there is a risk of environmental impact.
Emergency drills are also conducted regularly. These drills use scenarios such as high concentrations of soot due to faulty equipment and leakages of oil into the ground, giving employees practice in the necessary preventative and responsive measures for such situations.
In recent years, extreme weather events are occurring as a result of global warming. We have formulated manuals to prepare for accidents and emergency situations caused by such weather, and we organize training sessions to minimize environmental impacts. In particular, to address any accidents and emergency situations that may cause water or soil pollution, we systematically review and implement the backup and reinforcement of relevant equipment.

EInitiatives at Research Institutes

The research institutes periodically analyze boiler exhaust gas and wastewater in accordance with laws, municipal ordinances, and pollution control agreements to confirm that values are within regulatory limits. To prevent air pollution, the institutes employ scrubbers and filters to remove chemical substances from the exhaust gas. The Fukui Research Institute switched kerosene-fired boilers to gas-fired boilers in FY2014 to reduce the amount of soot and nitrogen oxide in the exhaust gas. To prevent water pollution, all wastewater containing reagents used for experiments is collected and appropriately disposed of as industrial waste based on wastewater management regulations. Based on the Japanese Water Pollution Control Act, wastewater is inspected regularly to ensure that no pollution of groundwater occurs.
We will continue to take all possible measures to prevent air and water pollution.

œ Chemicals

ONO is committed to reducing chemical emissions to the lowest possible level not only in compliance with laws and regulations but also in recognition that these emissions may impact human health and the ecosystem.

ECompliance with the PRTR Law

In FY2016, the Minase Research Institute and the Joto Plant made reports on Class I designated chemical substances. These chemicals are managed in appropriate amounts and in compliance with the PRTR Law.

Compliance with the PRTR Law


EAmount of Chemical Substances Handled

In FY2016, as in FY2015, the volume of Class I designated chemical substances under the PRTR Law that we handled remained extremely low, at just 11.14 tons. This is partly because ONO does not conduct any synthesis of pharmaceutical substances. We will continue to make efforts to reduce the amount that we handle and to keep down the amount released.

EHandling of PCBs

ONO manages waste polychlorinated biphenyls (PCBs) properly in accordance with the Law Concerning Special Measures for Promotion of Proper Treatment of PCB Waste in Japan. The company submits a report on the storage and disposal of waste PCBs to the Osaka municipal government every year.

Site Status Type Number of units
Joto Plant Stored Fluorescent lamp 552
Disposed* Condenser 6
Minase Research Institute Disposed* Condenser 2

* The Joto Plant in FY2007 and the Minase Research Institute in FY2014 delivered PCBs to the Japan Environmental Storage and Safety Corporation, a PCB waste treatment service provider.

œ Green Purchasing

In December 2004, we started purchasing on a company wide basis-from @office, an online office supply purchasing service provided by Kokuyo Co., Ltd. This service offers a wide range of environmentally friendly office supplies, including Green Mark and Eco Mark certified products, and we use this service to promote green procurement. In FY2016, 83% of the office supplies purchased by ONO were environmentally friendly products.


œ Independent Practitioner's Assurance

We have had our data certified by an independent third party to heighten the credibility of the environmental information with check ("energy-derived CO2 emissions," "energy consumption," "CO2 emissions in the value chain (Scope 3)," "water resource input" and "industrial waste: amount of the waste generated/landfilled") we disclose in CSR Report 2017 (PDF version). For the Independent Practitioner's Assurance Report, see page 43 of CSR Report 2017 (PDF version).