Sustainability Management

Sustainability Policy

Our corporate identity is "Contributing to the realization of a healthy society through the latest optimal medical device technologies". As a company that deals with medical devices, we aim to enhance our corporate value by pursuing not only the economic value of providing excellent medical devices to patients and medical professionals, but also the social value of realizing a healthy society. In addition to practicing our management philosophy, we will also focus on strengthening the foundation that will enable us to achieve sustainable growth over the medium to long term by implementing various initiatives to promote sustainability in order to meet the expectations and demands of the various stakeholders surrounding us.

By strengthening our sustainability-related initiatives and aiming for sustainable enhancement of corporate value, we will meet the expectations of our various stakeholders, including patients, medical professionals, employees, business partners, local communities and shareholders and investors.

Sustainability Policy_1

Sustainability Policy_2

Please click here to view other policies.

Multi-Stakeholder Policy (Japanese only) (153KB)

Human Rights Policy

Environmental Conservation Policy

Procurement Policy

Sustainability Promotion Structure

The Sustainability Committee, which is chaired by the president and CEO and composed of operating directors, plays a central role in determining and promoting company-wide action policies related to our sustainability efforts. Seven subcommittees have been established under the committee foreach materiality, and specific activities are carried out under the instructions of the committee. The Sustainability Committee receives quarterly activity reports from each subcommittee and monitors the progress toward targets.

The Board of Directors regularly receives reports from the Sustainability Committee, oversees the Committee, and decides on important matters related to sustainability.

Sustainability Promotion Structure

Identifying Materiality

Materiality Identification Process

In June 2021, we identified the materiality (important issues) shown as below.

<Procedures for Identifying Materiality>

STEP1.Identifying Social Issues

Identified social issues by referring to evaluation items in international sustainability guidelines (GRI, SASB, SDGs). Created a comprehensive long list of social issues and organized the items to create a short list of social issues (27 items).

STEP2.Prioritizing Social Issues

Evaluated and prioritized individual social issues by using the two axes of "importance to the company" and "importance to stakeholders.”

Created a matrix and selected candidates for the materiality that should be prioritized and initiated by the company.

STEP3.Validation

Confirmed the validity of the selected candidates of materiality through discussions by the members of the board.

STEP4.Identifying materiality

Organized the identified materiality into the following two categories.

“Issues to be Resolved Through the Business”
“Issues to be Addressed to Strengthen the Business Foundation”

Starting from the identified materiality, we will promote sustainability-related initiatives through setting KPIs and targets, developing a roadmap, implementing initiatives, monitoring progress, and disclosing information of the results.

Materiality

We categorize the 7 materiality into 2 categories, “issues to be resolved through the business” and “issues to be addressed to strengthen the business foundation” and set major theme for each materiality.

● Issues to be Resolved through the Business

Area Materiality Major Theme
Philosophy
Realizing a Healthy Society
Solve Medical Issues Through Innovative Medical Devices
  • Improve technology for in-house products
  • Introduce medical devices with high clinical value

● Issues to be Addressed to Strengthen the Business Foundation

Area Materiality Major Theme
Environment
Consideration for the Global Environment
Reduce environmental impact
  • Use resources efficiently
  • Reduce greenhouse gases
  • Reduce waste / Process waste properly
Social
Creating a Rewarding Workplace
Supply of Safe and Reliable Products
Creat a workplace where employees can work with comfort
  • Create a comfortable work environment
  • Respect human diversity
  • Respect human rights
Develop human resources and provide opportunities for them to play an active role
  • Support employees to achieve specialized skills and personal goals
  • Strengthen education and training
Secure product quality and stable supply
  • Strengthen the quality control system
  • Secure stable supply of products
Governance
Acts as a Responsible Company
Strengthen corporate governance
  • Strengthen auditing and supervisory functions
  • Execute management decision and operation with objectivity and transparency
  • Strengthen risk management initiatives
Promote compliance
  • Ensure fairness and transparency in corporate activities

KPI and Progress

The Sustainability Committee has established a vision of what we want to be by 2030 for each materiality, and has set medium-term targets to achieve these targets through the fiscal year ending March 31, 2025. The subcommittee takes the lead in formulating KPI's and working toward achieving them.

Materiality Major Themes KPI SDGs
Solve medical issues through
innovative medical devices
Improve technology for in-house products
  • R&D expenses
  • Number of patent applications
  • Exploring new areas of business from Intellectual Property
3.GOOD HEALTH AND WELL-BEING 9.INDUSTRY,INNOVATION AND INFRASTRUCTURE
Introduce medical devices with high clinical value
  • Introduction of user-friendly in-house products/purchased products
  • Application and Expansion of proprietary technologies to other fields
Reduce environmental impact Use resources efficiently
  • Establishment of an environmental policy and promotion system
12.RESPONSIBLE CONSUMPTION AND PRODUCTION 13.CLIMATE ACTION
Reduce greenhouse gases
  • CO2 emissions
Reduce waste / Process waste properly
  • Industrial waste recycling rate
Create a workplace where employees can work with comfort Create a comfortable work environment
  • Assessment on the current status and implementation of measures to improve work-life balance
5.GENDER EQUALITY 10.REDUCED INEQUALITIES
Respect human diversity
  • Ratio of female managers
Respect human rights
  • Reinforcement on efforts to reduce human rights risks
Develop human resources and provide opportunities for them to play an active role Support employees to achieve specialized skills and personal goals
  • Formulation of human resources policy and establishment of human resources development promotion system
  • Improvement of employee satisfaction
8.DECENT WORK AND ECONOMIC GROWTH
Strengthen education and training
  • Education and training expenses per employee
Secure product quality and stable supply Strengthen the quality control system
  • Compliance with global regulatory requirements (Acquire MDSAP certificate)
  • Maintain and improve the quality of our in-house products
12.RESPONSIBLE CONSUMPTION AND PRODUCTION
Secure stable supply of products
  • Promotion of production line duplication
  • Diversification and internalization of outsourcing of critical components and subcontracted processing
Strengthen corporate governance Strengthen auditing and supervisory functions
Execute management decision and operation with objectivity and transparency
  • Implementation of measures to comply with the Corporate Governance Code
8.DECENT WORK AND ECONOMIC GROWTH 16.PEACE,JUSTICE AND STRONG INSTITUTIONS
Strengthen risk management initiatives
  • Promotion of risk management
  • Reinforcement on information security measures
Promote compliance Ensure fairness and transparency in corporate activities
  • Strengthening of the compliance system
  • Promotion of efforts to improve understanding of the whistleblower system
16.PEACE,JUSTICE AND STRONG INSTITUTIONS

Solve medical issues through innovative medical devices

Our management philosophy is "to contribute to the realization of a healthy society through the latest and most appropriate medical devices.

Our value creation is based on the continuous delivery of innovative medical devices to the medical community.

We will secure our technological competitive advantage by developing new proprietary technologies through focused investment in R&D and patenting the results. We would like to meet the needs of medical professionals by introducing overseas advanced medical devices in Japan,applying our proprietary technologies to the development of products in other fields besides cardiovascular diseases.

KPI Medium-Term Targets (by FY3/2025) FY3/2023 results
R&D expenses
  • Progress management of R&D expenses
    【FY3/2022 results: 2,159 million yen】
2,316 million yen
Number of patent applications
  • Number of patent applications: 100 (total for FY3/2023-FY3/2025)
    【FY3/2022 results: 27 patents】
34 patents
Exploring new areas of business from Intellectual Property
  • Planning and implementation of measures
Introduction of user-friendly in-house products/purchased products
Expansion and application of proprietary technologies to other fields
  • Identify needs in the medical field
  • Develop products that meet the needs of the medical field
  • Search for highly novel products
Introduction of one-of-a-kind products 1 item

Reduce environmental impact

The impact of environmental problems on sustainability, such as an increase in natural disasters due to global warming and marine pollution caused by plastic waste, has become a major social issue.

We are actively working to reduce our environmental impact over the medium to long term by establishing policies and systems for environmental preservation. We will contribute to the preservation of the global environment by reducing CO2 emissions and improving the industrial waste recycling rate through our business activities.

KPI Medium-Term Targets (by FY3/2025) FY3/2023 results
Establishment of an environmental policy and promotion system
  • Establish an environmental preservation policy (FY3/2023)
  • Establish an environmental promotion system
Formulation of Environmental Conservation Policy
CO2 emissions
  • Identify CO2 emissions
    【Overseas Scope1,2 2022年3月期実績:6,720t】
  • Initiatives to reduce CO2 by 50% (compared to FY3/2021) in 2030
6,612t
Industrial waste recycling rate
  • Achieve 90% recycling rate of industrial waste
96%

Create a workplace where employees can work with comfort

Employees are an important management resource supporting our business activities, and an environment in which all employees can work while making the most of their diversity is important for the sustainable growth of the company.

We are committed to creating an environment where each employee can work with vitality and enthusiasm by improving work-life balance and promoting understanding of diversity. In addition, we will formulate policies to respect the human rights of all stakeholders involved in our business and promote educational activities.

KPI Medium-Term Targets (by FY3/2025) FY3/2023 results
Assessment on the current status and implementation of measures to improve work-life balance
  • Grasp actual working hours and set targets (FY3/2023)
  • Monitor and improve of actual working hours
Grasping the actual working hours per person per year(1941.7h)
Ratio of female managers
  • Achieve 15% of female management rate by 2030
    【FY3/2022 result(Non-consolidated):2.1%】
  • Increase ratio of female employees
  • Study and implement measures to support women
2.6%
Reinforcement on efforts to reduce human rights risks
  • Formulate of human rights policy
  • Conduct risk assessments on human rights
Formulation of human rights policy

Develop human resources and provide opportunities for them to play an active role

Employees are important management resources that create the company's competitive advantage, and their growth through new challenges will enhance the company's corporate value over the long term.

We will continue to actively invest in human resources by establishing policies and systems for human resource development. By implementing measures to improve employee satisfaction and providing training opportunities that promote growth, we will continue to create an environment in which each employee can work with a sense of fulfillment.

KPI Medium-Term Targets (by FY3/2025) FY3/2023 results
Formulation of human resources policy and establishment of human resources development promotion system
  • Establishment of a human resource development promotion system (FY3/2023)
  • Formulate a policy and promote human resource development
Establishment of human resources development promotion system
Improvement of employee satisfaction
  • Conduct surveys to understand the situation and consider measures (FY3/2023)
  • Improve employee satisfaction through implementation of measures
  • Conducting the survery
  • Analysis of survey results and formulation of measures
Education and training expenses per employee
  • Increase per capita education and training expenses by 5% each year【FY3/2022 result: 69,495 yen】
97,142 yen

Secure product quality and stable supply

The medical devices we handle include many products that may affect the lives of patients.Therefore, ensuring the reliability of their quality is an important management issue. We will promote efforts to continuously improve the quality of our products by complying with not only Japanese domestic standards but also global regulatory requirements.

The medical devices we handle include one-of-a-kind products, and it is our social mission to continue to provide a stable supply of products to the medical field. We will strengthen our product supply chain system by promoting supplier risk management and the duplication of production lines.

KPI Medium-Term Targets (by FY3/2025) FY3/2023 results
Compliance with global regulatory requirements (Acquire MDSAP certificate)
  • Comply with regulatory requirements
  • Obtain MDSAP* certificate
  • Improve our surveillance evaluation
Completion of MDSAP application
Maintain and improve the quality of our in-house products
  • Analyze complaint reports and conduct surveys for doctors
  • Discussions with R&D and manufacturing departments on issues
Percentage of supplier risk assessment surveys conducted
  • Maintain a survey implementation rate of at least 95%
    【FY3/2022 Results: 100%】
100%
Promotion of production line duplication
  • Assess the status of multiple production lines
  • Promote the use of multiple production lines
  • Promote multifunctional workforce
  • Holding regular cross-meetings for multi-skilled workers
  • Start of production line duplication work for multiple items
Diversification and internalization of outsourcing of critical components and subcontracted processing
  • Determination of improvement targets and evaluation indicators
  • Increase coverage of multiple production lines and in-house production by 5%(vs FY3/2024 results)

*Medical Device Single Audit Program

MDSAP is a program that verifies the conformity and adequacy of a manufacturer's QMS to the regulatory requirements of regulatory authorities in five countries (the United States, Australia, Brazil, Canada, and Japan) in a single survey by an accredited survey organization.

Strengthen corporate governance

In order to achieve sustainable growth in the midst of a drastically changing external environment, it is necessary to establish a corporate governance system that increases management transparency and ensures prompt decision-making and its execution and supervision. We aim to enhance our corporate value by steadily promoting compliance with the Corporate Governance Code.

In recent years, the diversification of risks surrounding companies has made risk management more important than ever. We will strive to reduce risks by reassessing and deciding on measures to address company-wide risks and by strengthening information security measures.

KPI Medium-Term Targets (by FY3/2025) FY3/2023 results
Implementation of measures to comply with the Corporate Governance Code
  • Improve the sustainability promotion system (FY3/2023)
  • Revise the composition and calculation method of executive compensation
  • Comply with the revised Corporate Governance Code
Appointment of one additional outside director to the Nomination and Remuneration Advisory Committee
Promotion of risk management
  • Implement BCP related measures for all business locations and share the knowledge internally
  • Reassess company-wide risks, determin countermeasures, verify and implement reviews continuously
  • BCP development at all sites
  • Creation of company-wide risk list
Reinforcement on information security measures
  • Ensure information security rules known throughout the company
  • Conduct inventory of information assets and vulnerability assessment
  • Create and implement a five-year roadmap based on the results of company-wide risk analysis
Conduct training for all employees (2 times)

Promote of Compliance

As a company that handles medical devices that can affect the lives of patients, we recognize that each of our employees is required to not only comply with laws and regulations, but also to have a higher sense of ethics in their actions.

We believe that practicing compliance means meeting the expectations of all stakeholders involved in our business, and we aim to be a company that continues to be trusted by society through compliance awareness activities.

KPI Medium-Term Targets (by FY3/2025) FY3/2023 results
Strengthening of the compliance system
  • Review on-the-job training content by job and post
  • Implement various training programs and raise awareness of compliance
Conducting various training programs for all employees and job-specific
Promotion of efforts to improve understanding of the whistleblower system
  • Establish of a whistleblower system that complies with the Whistleblower Protection Act
  • Ensure the whistleblower protection system known throughout the company for its appropriate use
  • Consider applying the whistleblower system to our business partners
  • Establish of a whistleblower system that complies with the Whistleblower Protection Act
  • Conducting training programs for all employees and awareness surveys of the whistleblower system
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