Relationship with Environment

Takeda implements measures in all areas of its business, improving the controlling structure with the "Basic Principles on the Environment," which was formulated in 1992, as its benchmark.

Basic Principles on the Environment

1. Overall Policy

Give serious consideration to the impact on the environment in every aspect of corporate activities, including R&D, production, distribution, marketing, procurement and clerical works, and make the best efforts to conserve and improve the environment.

2. Efficient Utilization of Resources and Minimization of Waste

Conserve energy and other resources, and actively pursue waste minimization and resource recycling.

3. Assessment of Environmental Impact from Products and Manufacturing Processes

When developing new products and processes, evaluate the impact on the environment in advance, during development, and periodically after commercialization. Consider the entire business cycle from procurement of raw materials and supplies through the use and the final disposal of products to reduce the impact on the global environment.

4. Development and Utilization of Environmental Technologies

Develop technologies for environmental protection and improvement, and actively pursue outside technologies when it is beneficial.

5. Response to Emergencies

When an adverse effect on the environment is foreseen, exercise the best possible contingent efforts to eliminate or minimize such adverse impact.

6. Clear Definition of Accountability and Responsibility

Appoint executives and managers in charge of environment-related activities and clearly define their authority.

7. Cooperation with the Community and Society at Large

Actively cooperate with the environmental efforts of local communities and provide fair and unbiased information.

8. Education and Training

Educate and train each employee to understand and realize the importance of environmental issues and to act accordingly in his or her daily routine.

Environment and Safety Management Structure

Takeda has established the "Environmental Committee," consisting of managers in charge of environment-related activities from each division, to promote our business operations based on the "Basic Principles on the Environment." At the Environmental Committee, various issues regarding the environment, including company-wide environmental protection, energy conservation and accident prevention are deliberated and annual environmental policies are determined. Under the Environmental Committee, three subcommittees - the "environment," "energy conservation" and "accident prevention" - have been formed, whereby the promotion and implementation of measures for each issue are underway at the managers' level. Moreover, personnel in charge of environment-related activities are appointed at the manufacturing plants and research center, promoting activities based on the medium-term implementation plan, as well as the annual plan.

Takeda's Major Environmental Protection Policies and Achievements in Fiscal 2006

Theme	Policies	Achievements
Promotion of basic efforts to respond to environmental issues	Develop legal compliance systems and adherence to in-house standards.	Established in-house standards, which are more stringent than the legal requirements and maintained legal compliance systems through regular environmental monitoring based on in-house standards.
Energy conservation and reduction in greenhouse gas emissions	Reduce CO2 emission by 40% compared to the fiscal 2005 level by fiscal 2010.	Achieved a reduction of CO2 emission to 345K tons, a 4% decrease compared to the fiscal 2005 level.
Waste reduction	Taking fiscal 2004 as a benchmark of the final waste disposal amount, reduce this amount by 30% by fiscal 2010.	Achieved a reduction of the final waste disposal amount to 217 tons, a 25% decrease compared to the fiscal 2004 level.
Adequate management of chemical substances and reduction of their emissions into the environment	Reduce emissions of chemical substances into the environment.	Achieved reduction in toluene emissions into the air by introducing the catalytic combustor.
Implementation of educational and awareness raising activities	Promote compliance education in relation to environmental issues.	Disseminated case examples of accidents and provided compliance education in relation to environmental issues, utilizing a compliance status checklist.
Contribution to communities	Improve in communication with authorities and community members and strive toward the enhancement of living environmental sustainability.	Collected information from the "Sensing Monitors" from selected residents in the vicinities of the plant to ensure there is no problem.

ISO14001

Takeda's main production facility - Hikari Plant - obtained ISO 14001 certification, a globally accredited authentication for an environmental management system, in December 1998. Currently, eight sites of the Takeda group are ISO 14001 certified.

Responsible Care Activities

Responsible Care is an international voluntary program dealing with the management of chemical substances by businesses, with activities now extending to 52 countries. The purpose of the program is to secure "environment," "safety" and "health" while handling chemical substances and Takeda has been implementing such activities since 1995, when the Japan Responsible Care Council was launched.

Environmental Accounting

Takeda has long assessed and managed the amount of investment and expenditure for environmental protection since fiscal 1980.
The total environmental protection costs: business area costs, upstream and downstream costs and administration costs were calculated in accordance with the "Environmental Accounting Guidelines 2005" by the Ministry of the Environment and "Accounting Guidelines for Chemical Companies" by the Japan Chemical Industry Association, with the results shown as indicated on the right.
In fiscal 2006, the amount of investment on environmental protection costs was approximately ¥300 million, with expenditure of ¥2.1 billion.
As to the investment amount, it was largely dominated by the costs of renewing the aging equipment of the environmental protection facilities.
The economic effect of the energy conservation was equivalent to approximately ¥220 million. In addition, the facility investment spent on renewing aging facilities and building construction work to enhance earthquake safety was implemented with expenditure of ¥2.2 billion.

Environmental Protection Costs

• • Data collection period: April 1, 2006 to March 31, 2007
• • Data collection sites: Shonan Plant, Osaka Plant, Hikari Plant and Tsukuba Research Center