Environmental Issues Study Group
Interview with Chairman Arima

Climate change countermeasures and the realization of a recycling-oriented society are important issues that all industries cannot avoid. Particularly for the pharmaceutical industry, which contributes to people's lives and health, addressing environmental issues is fundamental to upholding its mission of providing a stable supply of medicines and supporting the trust society places in it. The "Study Group on Environmental Issues," which was established in 2022, will play a central role in this effort. It is working as the core of the industry's unified effort to tackle this difficult issue. We asked Satoru Arima, Chairman of the Environmental Issues Study Group, about the challenges facing the pharmaceutical industry, specific initiatives, and future prospects.

What We Can Do for the Health of Humankind and the Planet
Pharmaceutical Supply Chain Resilience in an Environmental Crisis

Fulfilling the Responsibilities of Life-Related Industries and the Challenge of Environmental Issues

The most important mission of the Environmental Issues Study Group is to establish a foundation for the industry to be trusted by society, which is one of the pillars of the "Industrial Vision 2035" set forth by the Pharmaceutical Manufacturers Association of Japan (PAL). As a life-related industry, we are committed to making this a reality. As a life-related industry, it is our responsibility to address this issue seriously, as it is the very foundation of our business to maintain a stable supply of pharmaceutical products.
The Environmental Issues Study Group was established in 2022 to strengthen the efforts of the Pharmaceutical Manufacturers Association of Japan (PMAJ) in response to this growing global awareness. The committee works closely with the Environmental Committee of the Federation of Pharmaceutical Manufacturers' Associations of Japan (JFPMA) to promote industry-wide activities.

Carbon neutrality" and "recycling-oriented society" are two important issues

Currently, we are focusing on two issues in particular. One is "climate change countermeasures to achieve carbon neutrality" and the other is "addressing waste issues to realize a recycling-oriented society.
Carbon neutrality is not just about reducing CO₂ emissions. Recent abnormal weather and natural disasters are serious risks that threaten the entire supply chain of pharmaceuticals, from raw material procurement to manufacturing and distribution. We need to build a robust value chain to protect people's health.
In addition, the handling of plastics is a major challenge for the realization of a recycling-oriented society. For example, PTP sheets used for packaging pharmaceuticals are a composite material of plastic and aluminum, and are technically very difficult to recycle, a challenge unique to the industry.
We have set specific targets for these issues and are steadily working to achieve them. As a result, we achieved a 40.4% reduction in FY2023. We believe it is possible to achieve the target, but it is also true that finding the remaining room for reduction is becoming tougher every year.

A milestone for the future, a challenge for the entire value chain

The bigger challenge is the entire value chain, which cannot be completed by our company alone. In our study group, the Carbon Neutral Action Plan Group and the Voluntary Action Plan for Establishing a Recycling-Oriented Society Group specialize in Scope 3 and waste issues, respectively, and in the third year since their establishment, we have finally begun to lay the groundwork for resolving these issues for the entire industry.
With regard to Scope 3, it is difficult to calculate the emissions of each supplier based on a unified standard, and we have yet to set a reduction target for the industry as a whole. To solve this problem, we applied for and were selected for the Ministry of the Environment's "FY2025 Model Project for Promoting Decarbonization throughout the Value Chain," which is a collaborative effort between the public and private sectors. Through this project, we plan to create emission calculation rules and guidelines that can be used across the industry, and this is an important step that will influence our future strategy.
In the area of recycling-oriented society initiatives, we are sharing advanced case studies of individual companies within the industry, such as PTP sheet recycling, and working to develop them horizontally. In addition, we have launched a new system called the "Pharmaceutical Supply Chain Environmental Award" to recognize and share outstanding initiatives. We aim to raise the level of the industry as a whole by spreading the word about excellent examples.

From "Collaboration" to "Co-creation

We believe that patients should be able to receive environmentally friendly pharmaceuticals in their hands as a matter of course. We believe that we should aim for that situation. Environmental considerations are not an added value, but a prerequisite for business activities that support a stable supply of pharmaceuticals and industry confidence.
Our most important task in the short term is to establish a Scope 3 calculation base. Beyond that, we are looking toward the lofty goal of "achieving carbon neutrality as an industry by 2050. This ambitious goal cannot be achieved by the pharmaceutical industry alone. In the spirit of "co-creation," we can only achieve this goal by working hand in hand with a diverse range of stakeholders, including suppliers, government and regulatory authorities, and academia.
We are working together with people of different sizes and in different situations to face the common challenge of environmental issues. We believe that we can fulfill our responsibility as a life-related industry by creating common rules for this purpose, honestly disclosing information, and promoting constructive dialogue. Together with the members of the committee, we are determined to steadily fulfill this responsibility.

The structure and activities of the Environmental Issues Study Committee are posted on the website of the Pharmaceutical Manufacturers Association of Japan. Please visit the site.

[Environmental Issues Study Group Website]
Environmental Issues Study Group | Information from the Committee | Japan Pharmaceutical Manufacturers Association, Inc.

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