Action on Climate Change
Strategy for Addressing Climate Change
Our analysis of the risks and opportunities from climate change to the pharmaceutical wholesale business—the VITAL KSK Group’s core business—was conducted using two scenarios (the 1.5°C and 4°C scenarios) published by the Intergovernmental Panel on Climate Change (IPCC) and the International Energy Agency (IEA). As a Group whose business is based on logistics, we consider climate change to be one of our major sources of risk. For this reason, we have included climate change in our management strategy and are incorporating this into our risk management system.
Climate change-related risks and opportunities for pharmaceuticals wholesaling
Results of Scenario Analyses
1.5°C scenario
One of the risks identified for the wholesale pharmaceutical industry is that companies will be required to comply with carbon pricing systems, GHG emission regulations, as well as renewable energy and energy conservation policies. For this reason, we are working to use electric power from renewable energy sources and to introduce HVs, EVs, and energy-saving equipment.
At the same time, new opportunities include improving the Group’s reputation among customers and investors as a result of climate change initiatives and securing new revenue streams by expanding the GHG emissions trading system. To capitalize on these opportunities, in addition to Group-wide climate change initiatives and information disclosure, we are working on low-carbon forms of transportation and are considering promoting reduced GHG emissions as added value.
4°C scenario
Adverse weather conditions are expected in the future. Aware of this risk to the wholesale pharmaceutical industry, we are working to formulate BCPs and to develop disaster response programs for logistics centers, as we anticipate that facilities owned by the Group and our suppliers will be affected by wind and flood damage, resulting in delivery delays and suspended operations.
On the other hand, new opportunities include leveraging the strengths of the Group’s logistics system to enable the rapid, widespread supply of medical supplies when there is increased demand due to an outbreak of infectious diseases caused by climate change. To be ready, we will use the network we have developed to build a logistics system that is prepared for this type of emergency.
Indicators and Targets
At the same time, we intend to conform to the long-term goals set out in the Paris Agreement: holding the increase in the global average temperature to below 2°C above pre-industrial levels and working to limit the temperature increase to 1.5°C above pre-industrial levels. We will also do our best to meet the Japanese government’s goal of reducing GHG emissions to net zero, or realizing carbon neutrality, by 2050. So, we have set the target of achieving a 30% reduction in GHG emissions (compared with the FY2021 level) by FY2030, in a bid to achieve sustainability. Looking ahead, we are considering calculating Scope 3 emissions to track emissions for our entire supply chain.
The results of Scopes 1 and 2 GHG emissions at all Group business sites:
GHG emission reduction targets
Initiatives Contributing to the Reduction of Environmental Impact
Reducing GHG emissions from the Group’s operations
Among our initiatives that help reduce our environmental impact, we are working to reduce GHG emissions from shipping by optimizing our transportation network and logistics centers, while gradually replacing facilities and equipment with environmentally friendly alternatives.
- Installing power consumption monitoring systems
- Introducing LED lighting
- Adding motion detectors and daylight sensors
- Deploying HVs and EVs
- Installing solar panels (at the Miyagi and Hyogo Logistics Centers)
- Digitalizing for paperless operations
- Using FSC-certified and recycled papers
- Introducing high-efficiency air conditioning equipment
Recently introduced EV company vehicle
Solar panels on the roof of the Hyogo Logistics Center
Initiatives to reduce environmental impact at Group companies