PHC Group is committed to long-term sustainability efforts. Our mission is “we contribute to the health of society through our diligent efforts to create healthcare solutions that have a positive impact and improve the lives of people.” We recognize that sustainability is the highest priority issue in shaping our mission.
Considering the above, we have identified 11 key materiality topics and their respective KPIs, which we will address globally. We will contribute to the sustainable development of society through our Group-wide efforts coordinated with our Mid-Term Plan, or Value Creation Plan.

ESG Strategy

In November 2022, we announced our Mid-Term Plan, or Value Creation Plan (VCP). The VCP defines our business Growth Areas and clarifies our strategies to drive future business growth, while at the same time outlining our commitment to strengthening ESG management. Prior to the announcement of the VCP, PHC Group’s sustainability activities were individually performed by our subsidiaries. However, in August 2023, we identified “materiality topics” and we clarified the challenges which we prioritize as a group. Identifying these materiality topics has enabled our entire organization to work together to promote sustainability initiatives.

Our mission is “we contribute to the health of society through our diligent efforts to create healthcare solutions that have a positive impact and improve the lives of people.” From a sustainability perspective, contributing to social issues through our business activities is consistent with our mission, and is one of our most important management themes. With this in mind, we have identified 11 materiality topics that should be prioritized throughout our entire company. For environment materiality topics, we are focusing on global environmental issues such as climate change, preservation of natural resources, and circularity. For social materiality topics, we are working to contribute to society by leveraging the characteristics and strengths of our products and services, promoting diversity, and providing employees with a vibrant workplace. For governance materiality topics, we are striving to strengthen corporate governance, risk management, and cybersecurity. When defining the above materiality topics, we also discussed ways that PHC Group can contribute to solving broader global issues. A summary of the content can be viewed in the SDGs matrix on page 24.

We aspire to be a company that sets ambitious goals for business growth and continues to embrace challenges for creating new value. Similarly, we have a strong desire for sustainability and will strive to contribute to the creation of a prosperous society in areas where our company can make a unique impact.

Materiality Topic Identification Process

1. STEP1

   Identification of Materiality Universe

   We developed a comprehensive list of potential sustainability issues to consider addressing as a company, based on respected global sustainability standards and indices including the Global Reporting Initiative (GRI), Sustainability Accounting Standards Board (SASB), Sustainable Development Goals (SDGs), ISO26000, and other sustainability-related global standards.

2. STEP2

   Assessment of Importance

   We evaluated the list of potential materiality topics based on two factors: importance for society and external stakeholders, and importance for PHC Group to realize our mission and achieve our stated business goals. To weigh these factors, we surveyed and interviewed customers, suppliers, business partners, and employees to collect insights on which topics most resonated with our stakeholders.

   

   We also held internal workshops in each business division and corporate function globally. We combined feedback from surveys, interviews, and workshops to narrow the list of potential materiality topics to a final short list of topics that are highly relevant to PHC Group’s business and on which we can make a direct impact.

3. STEP3

   Target Setting

   We conducted external research of industry trends and reviewed internal data from across our businesses to identify priority issues on our short list for which to set targets. We then collaborated closely with each of our business divisions and corporate functions to align on specific, measurable, time-bound targets.

4. STEP4

   Adoption

   After approval by PHC Group’s Management Committee, we presented our ESG policy, materiality topics, KPIs, and targets to the Board of Directors for formal approval and adoption by PHC Group.

SDGs Matrix

• *1 Information security training (excluding employees seconded overseas/domestic and those on long vacations)
• *2 Excluding employees who do not have an email address
• * We have prepared this matrix with the supervision of Mr. Hidemitsu Sasaya, an ESG/SDGs Consultant and Professor at Chiba University of Commerce. The matrix is organized based on current status as of the reporting date, and will be updated in response to changes in business and other factors.
• * Except for CO2 emissions, PHC Indonesia data are not included.
• * Emerging and developing markets are Central and South America, Southeast Asia (including China, India, and South Korea), Middle East, Africa and Eastern Europe (including Russia)

About the Sustainable Development Goals (SDGs)

The Sustainable Development Goals (SDGs) are the successor to the Millennium Development Goals (MDGs), which were established in 2001. As stated in “Transforming Our World: The 2030 Agenda for Sustainable Development,” adopted unanimously by member states at the United Nations Summit in September 2015, the SDGs are international goals aimed at achieving a sustainable and better world by 2030. The SDGs consist of 17 goals and 169 targets and commit to “leave no one behind” on our planet. They are universal issues that everyone, from developing nations to developed nations, must address.