The Ministry of the Environment's Model Project Outcome Report Meeting" was held and the industry's first Scope 3 Guideline was announced. ~To accelerate decarbonization throughout the value chain

On March 2, 2026, the "Ministry of the Environment Model Project Outcome Report Meeting" was held at the Nihonbashi Life Science Building in Tokyo. This debriefing was the culmination of activities by the JPMA Environmental Issue Committee (13 companies) to develop guidelines for Scope 3 emission reductions common to the JPMA industry, which was selected by the Ministry of the Environment in FY2025 for its "Model Project to Support Decarbonization throughout the Value Chain. The event was attended by members of the Environmental Issue Committee, the Ministry of the Environment, the secretariat of the model project, and many other related parties. The background, aims, and main contents of the guidelines were shared in response to the completion of the "Practical Guidelines for Scope 3 Calculation and Collaboration with Business Partners in the Pharmaceutical Industry.

Most of the greenhouse gas (GHG) emissions in the pharmaceutical industry come from Scope 3 (emissions by other companies related to their own business activities), such as raw material procurement and logistics. However, industry-specific factors such as the complexity of supply chains and temperature-controlled logistics have limited the ability of individual companies to address these issues on their own. Against this backdrop, this report shared the background and aims of the guideline formulation in Part 1, specific calculation methods and the concept of engagement in Part 2, and future prospects for the industry in Part 3, confirming the importance of "co-creation" with stakeholders.

Part 1. Purpose of the meeting and Scope 3 as a common issue in the industry

Part 2. Pillars of the Guidelines: Engagement and Calculation Framework

In the second part, after an overview by Akihide Hara (Nippon Shinyaku) and Aya Isobe (Daiichi Sankyo), who led the writing of the guidelines, authors from the companies under consideration who were in charge of each chapter of the guidelines took the stage and explained practical points. The most significant feature of these guidelines is that they focus on engagement with business partners as an important pillar.

Engagement Practices

The role to be played by the pharmaceutical companies was outlined in terms of specific approaches, such as providing opportunities for explanation, setting step-by-step expectations, supporting calculation and goal-setting, and sharing good practices. It was emphasized that while formats are not standardized among the companies, standardization as a JPMA is a practical benefit that reduces man-hours for both pharmaceutical companies and suppliers.

Calculation rules specific to the pharmaceutical industry

The calculation method is based on the GHG Protocol, etc., and in addition to Category 1 (purchased products and services) and Category 2 (capital goods), which contribute significantly to emissions, the committee also identified Category 4 and 9 (transportation and delivery) and Category 10 (processing of sold products) as important categories, reflecting the characteristics of pharmaceutical logistics. We have positioned Category 10 (processing of sold products) as an important category. Even when it is difficult to obtain primary data, the report is organized with an awareness of practical applications, such as setting scenarios that do not underestimate the actual situation.

Part 3. Critique and future direction: Toward true solutions through co-creation

In the third part, the Ministry of the Environment made a critique of the guidelines, and highly evaluated the guidelines as a very significant voluntary effort by the industry and useful for other industries as well.

Finally, Mr. Satoru Arima, Chairperson of the Environmental Issue Committee (Daiichi Sankyo), made closing remarks. Chairperson Arima's message was that the completion of these guidelines is not the goal, but that "Co-Creation" with business partners and stakeholders, which starts from this point, is the key to solutions. He expressed his determination to improve the bottom line of the industry as a whole through highly transparent activities that treat the knowledge of leading companies as "common property of the industry" and openly address the concerns of companies facing problems.

Finally: Reflections from the companies reviewed

Scope 3 is a major source of emissions for pharmaceutical companies, accounting for approximately 90% of their total emissions. On the other hand, multiple business partners are involved in the supply chain, and in order to reduce emissions, in addition to all business partners setting targets and working to decarbonize, emissions must be measured on a consistent basis, emissions specific to individual products and services must be understood, and finally, primary data, not estimates （The final calculation must be based on primary data (actual measured values), not estimates. This is an extremely difficult challenge, but since there are no industry-specific standards, companies are currently working on this issue on a trial-and-error basis.

After much information sharing and expert knowledge, the Environmental Issue Committee published a "Request for Decarbonization Initiatives" for business partners as an industry in December 2024. This was a major step forward in demonstrating the need to address climate change throughout the value chain.

Subsequently, we worked to create common standards for the industry, but this did not happen quickly due to the wide range of issues involved. There are limits to what can be done by individual companies, and this issue can only be addressed as an industry to maximize its effectiveness. There is a growing awareness that the key to accelerating decarbonization is a common industry "guideline" that both the requesting pharmaceutical company and the business partner receiving the request can follow without hesitation.

The adoption of the project by the Ministry of the Environment's "FY2025 Model Project to Promote Decarbonization throughout the Value Chain" was a major turning point, and the formulation of the guidelines proceeded at a rapid pace. 13 companies that were considering the project joined forces for about 7 months from August 2025, holding plenary meetings and subcommittee meetings twice a month to engage in intensive discussions based on the latest domestic and international trends. The 13 companies joined forces and had intensive discussions based on the latest trends in Japan and overseas through plenary meetings and subcommittee meetings twice a year. While the focus of the discussions was on how far to go in addressing difficult issues, the participants shared a common desire to delve as deeply and practically as possible in the limited time available, making this a project with a total of more than 40 members. In formulating the guidelines, the first step was to redefine the "reason why the pharmaceutical industry is involved in this project" as its "raison d'être. The shared perspective that "protecting the global environment is the very mission of the pharmaceutical industry, which protects people's health and lives" was an important driving force in bringing out the initiative of each company. In addition, as a result of sharing the recognition of the issues among the companies considering the model project, it was visualized that "Scope 3 (especially Category 1) is a common issue," which successfully narrowed the focus of the discussion. In addition, a "small group" of volunteers was established to promote flexible discussions, thereby achieving both speed and quality in decision-making.

In addition, through events related to Expo 2025 Osaka/Kansai, we deepened dialogue with the Ministry of the Environment, the Ministry of Health, Labor, and Welfare, the Japan Pharmaceutical Wholesalers Association, and others on the theme of "climate change and human health," and reaffirmed the importance of "Co-Creation" (Co-Creation).

These guidelines have the following features not found in existing guidelines

The goal is net zero, whether at the national, industrial, or corporate level. However, given the different circumstances of each company, it was a difficult process to determine how to compile each theory into a guideline. The fact that we were able to compile these guidelines with the help of many experts through the model project is a major step forward that we could not have imagined a year ago, and is truly an achievement of "co-creation. It has been a seven-month period in which we have realized the difficulties and rewards of co-creation.

However, the development of these guidelines is not the goal. Going forward, we will use these guidelines to move forward together with our business partners and steadily reduce greenhouse gas emissions, one step at a time. In conclusion, we hope that these guidelines will help accelerate the decarbonization of not only the pharmaceutical industry but also the entire healthcare sector, and contribute to the realization of a sustainable society that protects human life and health. In addition, this document will be revised and enhanced as necessary to reflect developments in social conditions, international standards, and practical applications. We look forward to the continued understanding, cooperation, and frank opinions of all concerned.

Finally, we would like to thank the Ministry of the Environment, Deloitte Tohmatsu LLC, S.P.R. Blue Dot Green Corporation, and the Sustainable Management Promotion Organization, Japan, for their support.

Companies considered (presenters):
Astellas Pharma Inc. (Kiyohara), AstraZeneca K. K. (Tanii, Mitsutake), Eisai Co., Ltd. (Sato), Ono Pharmaceutical Industries, Ltd. (Tsujita, Gun), Kissei Co., Ltd. (Nishizawa), Sanofi K. K. (Kusakari), Santen PHARMACEUTICAL CO. (Yonehara, Ueki), DAIICHI SANKYO CO., Ltd. (Isobe, Yamada), TAKEDA PHARMACEUTICAL CO., Ltd. (Araki (general chair)), CHUGAI PHARMACEUTICAL CO., Ltd. (Suda, Watai), NIPPON SHINYAKU CO., Ltd. (Hara), MEIJI SEKA PHARMA CO., Ltd. (Kobayashi)
(Company names in alphabetical order, not in order)

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