Priority Issues

The KAKEN Group delivers value to society and contributes to achieving a sustainable society by practicing its corporate philosophy: “KAKEN helps improve the quality of life of patients by serving as many people as possible to return smiles of happiness to their faces, through supplying superior pharmaceuticals.” We believe that this will lead to the sustainable growth of the Group. In order to set out the challenges and initiatives in achieving this objective, we have identified priority issues related to the KAKEN Group's future value creation.

Process of Identifying Priority Issues

STEP
01Identify medium-to-long-term social issues

To determine the priority issues to be addressed through KAKEN's business activities, the Corporate Planning & Coordination Department and the General Affairs Department first identified social issues, taking into account, among other factors, the status of the Company's business, management plans, GRI Standards, and ISO 26000.

STEP
02Consider priority issues based on the social issues we want to solve

We identified and mapped social issues on two axes: “Relevance to KAKEN's business” and “Impact on stakeholders” in order to narrow issues down to those with a high degree of importance. From these, we compiled priority issues, their associated risks, opportunities and main initiatives, taking into account KAKEN's business philosophy.

STEP
03Consider management policies (Management Meeting)

The items selected were deliberated by management and designated as priority issues for the KAKEN Group.

STEP
04Review issues in light of operating environment changes

These priority issues are reviewed in light of changes in the Company's operating environment, progress of initiatives and stakeholder opinions collected through dialogue.

Priority Issues

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Business Philosophy "Three Joys"	Priority Issues	Associated Risks and Opportunities (Risks: , Opportunities: )	Main Initiatives
“Joy for patients” We strive to create and supply efficacious drugs that satisfy the needs of patients and medical professionals.	Contributing to medical solutions Creation of innovative new drugs that satisfy unmet medical needs Provision of pharmaceuticals with proven health economics Partnerships, and others with domestic and overseas companies	Insufficient development pipeline Changes in healthcare policies and market trends Fulfillment of unmet medical needs Contribution to society and heightened Company presence through development of innovative drugs	Focus management resources on research and development Promote alliances with overseas companies and others (for in-licensing of products under development, out-licensing of in-house products, joint research and other purposes)
	Fulfilling responsibilities as a pharmaceutical company Stable supply of high-quality pharmaceuticals with proven safety Activities to provide accurate information Intellectual property strategies	Decline in corporate value due to disruption in supply of pharmaceuticals Impact of intellectual property risks on business Suspension of sales due to inappropriate activities Maximization of product value through stable supply and provision of useful information	Maintain domestic and international standards for good manufacturing practice (GMP) Contribute to better medical treatment by improving product value in ways such as generating evidence Utilize digital tools and other means to establish efficient systems for delivering information Global intellectual property strategies
“Joy for society” We recognize our social responsibility as a pharmaceutical company, engage in all activities with high ethical standards, and aspire to earn society's trust.	Strengthening corporate governance Strengthening relationships with stakeholders Promotion of compliance Risk management to ensure business continuity	Decline in stakeholder trust Disruption of supply chain Increased risk of violations of laws and regulations, misconduct and other inappropriate actions Earning stakeholder trust	Strengthen governance framework Appropriate and timely information disclosure and dialogue Training and education in compliance, risk management, and relevant laws and regulations Contribute to local communities (participation in activities such as local beautification and disaster relief support) Develop/Update disaster and pandemic response plans
	Consideration for the environment Proper management of waste and wastewater Efficient use of water and other resources Reduction of CO₂ emissions Supply of eco-friendly agrochemicals	Disruption in production due to factors including depletion of water and other resources Decline in public trust due to insufficient efforts Cost reductions from energy conservation initiatives Contribution to global food safety	Roll out environmental management system Maintain ISO 14001 certification (Shizuoka Site) Continue CO₂ emission reduction initiatives Research and development of eco-friendly agrochemicals
“Joy for employees” Our objective is to become a company with vitality and presence whose employees enjoy and take pride in their work.	Creating fulfilling workplaces Generating and maintaining employment opportunities Work-style reform and improved productivity Employees' health, occupational safety and welfare Diversity Development of the next generation personnel Respect for human rights	Outflow of personnel Labor issues Decline in productivity Corporate growth from increased employee fulfillment and motivation Hiring and retention of talented personnel	Work-style reform (including digitalization of work processes) Appoint female directors Enhance systems for employing people with disabilities and seniors Protect employees against disease and promote mental healthcare initiatives Training programs, self-development support and discrimination/harassment prevention