Integrated Report 2026

Sustainability: MaterialityMateriality KPIs, Targets & Progress

Classification Materiality KPI Targets *1 Fiscal Year 2023 Actual, Progress Fiscal Year 2024 Actual, Progress Fiscal Year 2025 Actual, Progress *2
Environment Climate Change *3 Scope 1 & 2
CO2 emission reduction
Carbon neutral by 2040
42% reduction
(vs. 2023) by 2030
Scope 1: 15,861 tCO2e
(standard value)
Scope 2: 35,304 tCO2
(standard value)
Scope 1 & 2: 50,259 tCO2e Base year comparison: -1.8% Disclosure planned for the second half of 2026
Scope 3
CO2 emission reduction
25% reduction
(vs. 2023) by 2030
Scope 3: 793,687 tCO2
(standard value)
Scope 3: 804,771 tCO2e Base year comparison: +1.4% Disclosure planned for the second half of 2026
Preservation of Natural Resources Percentage of reduction of water withdrawal at production sites/labs on a per revenue basis 15% reduction
(vs. 2023) by 2030
1.2 m³/million JPY
(standard value)
1.1 m³/million JPY; base year comparison: -8% Disclosure planned for the second half of 2026
Percentage of reduction of packaging material on a per revenue basis 10% reduction
(vs. 2023) by 2030
12.8 kg/million JPY
(standard value)
10.4 kg/million JPY base year comparison: -19% Disclosure planned for the second half of 2026
Percentage of reduction of waste generated at production sites/labs on a per revenue basis 20% reduction
(vs. 2023) by 2030
17.0 kg/million JPY
(standard value)
16.6 kg/million JPY Base year comparison: -2% Disclosure planned for the second half of 2026
Circularity Percentage of total waste recycled at production sites/labs (excluding thermal recycling) 90% by 2030 46% 50% Disclosure planned for the second half of 2026
Percentage of recycled content in plastic packaging materials 10% by 2030 0% 2.20% Disclosure planned for the second half of 2026
Social Creating Healthcare Innovation that Supports Business Development Number of new patent applications (including design and utility) - 155 164 108
Number of PHC Group registered patents (including design and utility) - 4,306 4,160 4,162
Number of new products and services launched - 93 55 63
Product Excellence Number of warning letters issued (e.g., FDA warning letter) 0 0 (achieved) 0 (achieved) 0 (achieved)
Number of recalls issued - 2 3 3
Enhancement of Supply Chain Management Percentage of response rate to PHC Group supplier survey *4 95% 95% (achieved) 95% (achieved) 97% (achieved)
People & Culture Employee Engagement Score: increase from the previous year 1 point+ improvement YoY 62 YoY -1pt 67 YoY +5pt 68 YoY +1pt (achieved) *5
Enhanced employee learning and skill development - PHC Academy
Skill Database
PHC Academy (Next Generation)
Skill Database
PHC Academy (Next Generation)
Group Leadership Training
Governance Strengthening Corporate Governance Percentage of nationality diversity of the Board of Directors - 25.0% 30.0% 18.2%
Evaluation of the Effectiveness of the Board of Directors 1/year 1 (achieved) 1 (achieved) 1 (achieved)
Number of meetings with institutional investors and securities analysts - 95 106 123
Risk Management Number of Enterprise Risk Management Committee meetings 2/year Kick-off held 4 (achieved) 4 (achieved)
Percentage of employees taking compliance training (e.g., Code of Conduct, insider trading prevention) 100% 100% (achieved) 100% (achieved) 100% (achieved)
Cybersecurity Percentage of employees who participate in information security and data protection training 100% 100% (achieved) 100% (achieved) 100% (achieved)
Percentage of critical IT vendors subjected to cybersecurity reviews*6 100% 100% (achieved) 100% (achieved) 100% (achieved)
Number of PHC Group Cybersecurity Committee meetings 4+/year 4 (achieved) 4 (achieved) 4 (achieved)
  • *1KPIs for which it is difficult to set appropriate targets are displayed as “-”. Targets for items under discussion will be disclosed as soon as they are set.
  • *2Actual values for the materiality topics of Climate Change, Preservation of Natural Resources, and Circularity for fiscal year 2025 are currently under calculation. We plan to disclose this information on our website in Q3 2026.
  • *3Greenhouse gas (GHG) emissions categories are based on the GHG Protocol as outlined below:
    Scope 1: Direct emissions from the company through the combustion of fuel, etc.
    Scope 2: Indirect emissions as a byproduct of energy generation such as the above or purchased electricity
    Scope 3: Indirect emissions other than under Scope 2 (purchased products or services, transportation, disposal of sold products, etc.)
  • *4This covers the major suppliers for materials procurement in each business unit.
  • *5Starting from fiscal year 2025, the scope of the survey has been expanded to cover the entire PHC Group. As a result, the value is 64 points.
  • *6All vendors were reviewed over a two-year period. From an information security perspective, the fiscal year 2023 review covered entities within the scope of ISMS certification in Japan. From fiscal year 2024 onward, the scope has been expanded to include all of PHC Group.