Carbon Neutrality
The Otsuka group has identified the materialities of carbon neutrality, circular economy, and water neutrality as environmental initiatives to focus on and has set targets for each. Otsuka Pharmaceutical is implementing renewable energy sources, such as CO2-free electricity, and advancing initiatives to maximize energy usage efficiency to realize a decarbonized and sustainable society to achieve these objectives.
Carbon neutrality target
Carbon Neutrality
Target
- - 2028 target:Reduce 50% in CO2 emissions compared to 2017
Renewable energy progress in 2022
In 2022, Otsuka Pharmaceutical made significant progress in introducing renewable energy sources, achieving a 68% renewable energy introduction rate. This progress was made possible by the company's adoption of CO2-free electricity and utilization of Green Power Certificates. The introduction rate was measured based on crude oil equivalent.
CO2 reduction initiatives
Introduction of CO2-free electricity at all eight Otsuka Pharmaceutical plants in Japan
As of April 2020, all eight Otsuka Pharmaceutical plants in Japan have switched to CO2-free electricity, which is generated from renewable sources and doesn't emit CO2 during production. This move has reduced approximately 54,400 tonnes, or 66%, of the company's annual CO2 emissions in FY2022.
- *Reduction at eight domestic plants and one research institute
Use of Green Power Certificates
Since FY2020, all five Otsuka group companies*1, including Otsuka Pharmaceutical, have switched to green power for all their annual electricity consumption through Green Power Certificates. As a result, Otsuka Pharmaceutical achieved a reduction of approximately 3,000 tonnes of CO2 in FY2022*2.
- *1The Otsuka group companies that have adopted Green Power Certificates include Otsuka Pharmaceutical, Otsuka Pharmaceutical Factory, Taiho Pharmaceutical, Otsuka Chemical, and Otsuka Foods.
- *2Including partial use of CO2-free electricity
Introduction of Renewable Energy Facilities
Otsuka Pharmaceutical is also working to utilize renewable energy through the installation of solar power generation systems. In December 2021, the installation of solar panels on the pharmaceutical factory building at the Tokushima Itano Factory was completed marking a first significant step. Otsuka Pharmaceutical is now considering the introduction or expansion of similar systems at each of its factories.
Commitment Letter to Obtain Science-Based Targets Validation for the Entire Otsuka Group Was Submitted
In January 2026, Otsuka group submitted a letter of commitment*1 to SBTi*2, the certification body for Science-Based Targets (SBT), which are greenhouse gas emission reduction targets based on the Paris Agreement, and announced its intention to aim for SBT certification.
By setting targets for the entire Otsuka group, we will accelerate efforts across the entire group.
- *1A corporate climate initiative which was initially founded as a collaboration between CDP, United Nations Global Compact (UNGC), We Mean Business Coalition, World Resources Institute (WRI), and World Wide Fund for Nature (WWF). It validates whether corporate GHG emission reduction targets are consistent with scientific knowledge to achieve the Paris Agreement's goal of holding the increase in the global average temperature to well below 2°C above pre-industrial levels and pursue efforts to limit the temperature increase to 1.5°C above pre-industrial levels.
- *2 A Commitment Letter signifies a company's pledge to set targets aligned with SBT standards and apply to SBTi within two years.
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