Environment

Environmental Management

Sysmex Eco-Vision 2033

“Sysmex Eco-Vision 2033” Formulated

In May 2023, Sysmex formulated “Sysmex Eco-Vision 2033.” We will collaboratively create innovative solutions that will advance the realization of a circular society by taking on the challenge of green innovation with stakeholders and utilizing Sysmex's strengths. Furthermore, we have set targets for reducing our own greenhouse gas emissions to become carbon neutral by 2040. The targets also include reducing water consumption, waste, as well as for increasing the recycling rate.

Long-Term Environmental Vision

Long-Term Environmental Objectives

Declaration of Achieving Carbon Neutrality by 2040

Sysmex has set new "Carbon Neutral Targets" with the aim of achieving zero emissions of greenhouse gases in real terms from the offices of the entire Sysmex Group by 2040.¹ We will continue to promote optimization of our operations and energy-saving measures. At the same time, we will implement measures to reduce greenhouse gas emissions, including a gradual switching to renewable energy-sourced electricity at our business offices.²
In addition, we will set targets for 2033 based on SBT (Science Based Targets),³ and engage in activities to reduce greenhouse gas emissions from supply chains in addition to those from our business offices.

1 Applies to direct greenhouse gas emissions due to use of fuel by the company (Scope 1) and indirect greenhouse gas emissions arising from the use of electricity and heat purchased by the company (Scope 2)
2 Excluding small business locations such as properties rented for sales offices
3 Targets for reduction of greenhouse gas emissions with a scientific evidence, consistent with levels set out in the Paris Agreement. We will set targets in fiscal 2023.

Information Disclosure Based on TCFD

In recent years, climate change has begun to pose a major risk to financial markets. In December 2015, the Financial Stability Board, an international organization tasked with fostering financial system stability, established the Task Force on Climate-related Financial Disclosures (TCFD). In June 2017, the TCFD issued final recommendations for companies to follow in disclosing the impact of climate-related risks and opportunities on their corporate finances.
In January 2021, Sysmex expressed its support for the TCFD recommendations. We carry out information disclosure based on the TCFD framework.

1. Governance

Sysmex understands that global environmental issues such as climate change require a high-priority response. We drew up Global Environmental Management Regulations to clarify the responsibilities and roles of each Group company. Under the oversight and management of the environmental management officer (a member of the managing board and senior executive officer), appointed by the CEO, we engage in environmental management initiatives as a Group, centered on the Environmental Management Committee. The Committee supervises environmental activities within the Group, among them reducing CO₂ emissions, and discusses environmental issues including climate change. The Committee reports and makes proposals at Managing Board meetings. We have integrated environmental objectives into the Group Management Plan as sustainability targets, and report to the Managing Board meetings semiannually on the progress made.

2．Strategy

Adding to the 2-degree scenario implemented in 2020, Sysmex has upgraded the strategy to incorporate a 1.5-degree scenario¹ and re-evaluated the associated risks and opportunities. Regarding the financial impact of identified climate-related risks and opportunities on the business of the whole group², we have evaluated according to 3 grades based on the impact on operating profit in FY2033. For the 1.5-degree scenario, the impacts of market risk and reputational risk were evaluated as relatively high. For the 4-degree scenario³, the impacts of physical risks such as natural disasters were seen as relatively high, and regarding opportunities, resource efficiency, products and services and resilience were analyzed as having relatively high impacts.

1 IEA NZE2050, IPCC RCP2.6, etc. Scenarios assuming that increase in global average temperature will be kept below 1.5℃ compared to pre-industrial levels by taking strict measures against climate change.
2 The analysis was conducted not only for the Group but for the entire supply chain including upstream (raw materials, distribution, etc.) and downstream (use of products, etc.)
3 IPCC-RCP8.5, etc. Scenarios assuming that increase in global average temperature will be kept below 4℃ compared to pre-industrial levels by maintaining present measures against climate change.

3. Risk Management

Within the risk management system for the Group overall, we conduct an exhaustive assessment of risks every year, which includes environment- and climate change-related risks, to identify those with a significant impact on the business of the Group. We have created a structure for devising measures for dealing with these risks.

In addition, the Environmental Management Committee reviews environment-related risks and opportunities, including those arising from climate change, twice a year, with the Committee and respective departments playing leading roles in taking necessary actions in response.

Risk Management Structure

4．Metrics & Targets

Sysmex has issued a “Carbon Neutral Declaration” with the aim of achieving zero emissions of greenhouse gases in real terms from the Group’s business locations by 2040. Sysmex Eco-Vision 2033, the long-term environmental vision drawn up in May 2023, sets targets for reducing greenhouse gas emissions and increasing the percentage of renewable energy. To this end, we will continually make various efforts at every stage of the product lifecycle, from research and development through manufacturing and distribution to disposal.

Risks and Opportunities

Risks¹		Scenario	Impact period²	Financial effect³	Initiatives¹
Transition risks	Product supply will become difficult as a result of the prohibition of certain substances and technologies due to regulatory changes.	1.5℃	Medium- to long- term	L	RA/QA divisions have been established at each regional headquarters, and dedicated staff respond to the laws and regulations of each country.
	Transition to materials and technologies with low environmental impact, including a reduction in the use of plastics, will add to R&D costs and CapEx.	1.5℃	Medium- to long- term	L	Product and technology development is being pursued based on hospital laboratory requirements as well as market and industry trends.
	Energy and raw material costs, as well as global logistics costs, will increase	1.5℃	Short- to long- term	H	Energy saving measures and greater efficiency of equipment have been introduced. We have introduced renewable energy. Reduced cross-border transportation and more efficient logistics through wider use of concentrated reagents which has better transport efficiency, as well as transfer of production
	Changes in customers' environmental awareness will lead to criticism of the environmental impact of our products and reduce demand.	1.5℃	Medium- to long- term	H	We have established a system that utilizes customer feedback for product development and quality improvement (VOC: Voice of the Customer). Development of environmentally-friendly products such as energy-saving and smaller-size products
Physical risks	Large natural disasters will make it difficult to provide a stable supply of products and services.	4℃	Short- to long- term	H	We have formulated a business continuity plan (BCP) to disperse risks such as those associated with raw material supply, supply systems, transportation routes, and securing safety stocks.
Physical risks	Regional shortages of water due to drought will disrupt the stable supply of products.	4℃	Medium- to long- term	M	We are reducing the risk by periodically monitoring water-related risks and establishing BCPs.

Opportunities		Scenario	Impact period²	Financial effect³	Initiatives¹
Resource Efficiency	Optimization of use of transportation methods and operations using IoT. Review of packaging and product design will lower raw materials costs and waste.	1.5℃	Short- to long- term	H	Digitization of global logistics processes and promote CO₂ reduction through remote services. We will save resources and shift to plastic-free materials by reviewing material and packaging options. Dry ice-free, ultra-low temperature transport
Energy Source	Reduction of energy costs through energy saving and shifting to low-carbon energy, which will improve social evaluation.	1.5℃	Medium- to long- term	L	Energy saving measures and greater efficiency of equipment have been introduced. We have introduced renewable energy.
Products and Services	Changes in customers' environmental awareness will promote the purchasing of environmentally friendly products.	1.5℃	Medium- to long- term	M	We continue to promote environmentally friendly product development such as energy-saving and smaller-sized products
Products and Services	There will be creation of new testing opportunities and expansion of demand due to long-term disease-trend changes.	4℃	Medium- to long- term	M	We undertake new product development, such as products contributing to the eradication of malaria and other infectious diseases.
Market	Our initiatives for climate change and disclosures will earn us a greater reputation and higher expectations in financial markets.	1.5℃	Short- to long- term	L	We support the TCFD and disclose environmental data via the Sysmex Sustainability Data Book and other means.
Resilience	A stable supply of products and services in the event of a natural disaster improves customer trust.	4℃	Medium- to long- term	M	We implement a global supply system and backup system through multiple raw material procurement measures.

1 Bold font: Changes from evaluation in 2020
2 Short-term: 1 year; Medium-term: ~3 years; Long-term: ~10 years
3 H: high; M: middle; L: low

Environmental Initiatives to Realize a Sustainable Society

Takashi Ono, Environmental Management Officer

I'm of the opinion that environmental initiatives are sources of innovation for businesses. If each business starts to think more flexibly, firmly determined to change the approaches they have been taking, I expect new technologies to develop one after another, which will drastically alter the ways we do business or manage companies, eventually changing the shape of countries and the world as a whole. After all, we all live under the same sky. I will be delighted if we can help to shape a future where businesses network with each other beyond organizational boundaries and join hands in creating a sustainable society.

Environmental Initiatives to Realize a Sustainable Society

Environmental Management System

Group Environmental Management System

"1. Governance" of Information Disclosure Based on TCFD

Promoting the Acquisition of ISO 14001 Certification

Sysmex is working toward the acquisition of ISO 14001, the international standard for environmental management systems, by the Group's principal affiliated companies.
As of March 31, 2023, 20 Group companies had acquired ISO 14001 certification, and these companies account for approximately 70% of the net sales of the Group.
By centralizing the environmental activities of certain Group companies, we are working to ascertain the state of progress on activities and issues as well as reinforcing management activities, and three companies (Sysmex Corporation, Sysmex RA, and Sysmex Medica), accounting for nine locations, have obtained integrated certification. As a result, we are now able to systematically share information related to environmental management.

Status of ISO 14001 Certification

Region	Company
Japan	Sysmex Corporation, Sysmex Medica, Sysmex RA
Americas	Sysmex America, Sysmex Reagents America, Sysmex Brazil
EMEA^*	Sysmex Europe, Sysmex Deutschland, Sysmex France, Sysmex Espana, Sysmex UK, Sysmex Belgium, Sysmex Nederland, Sysmex Hungaria
China	Sysmex Wuxi, Jinan Sysmex
AP	Sysmex Asia Pacific, Sysmex India, Sysmex Australia

EMEA: Europe, the Middle East, and Africa

For details, refer to ID 0910589004 on www.tuv.com/japan/en/

The applicable scope of activities and website vary according to the standard.

Conducting Environmental Auditing

In line with environmental management system requirements, we perform regular internal and external environmental audits at locations that have obtained ISO 14001 certification. In fiscal 2021, neither internal nor external environmental audits at our domestic Group locations (for which certification has been integrated) revealed any cases of nonconformity. In Fiscal 2022, no nonconformities were found in internal environmental audits at our domestic Group locations with integrated certification, and 1 case of nonconformity in an external environmental audit. We have taken appropriate measures to address the nonconformities.

Environmental Education

Conducting Environmental Education and Training

Sysmex conducts general education for all employees to foster an awareness of the impact of the Group's environmental activities and individual operations. We conduct specialized training to raise operational knowledge for individuals designated by their divisions as personnel responsible for environmental management system promotion. We also conduct specialized and emergency response training for each division, as necessary.
In fiscal 2022, we provided general environmental e-learning training for all employees at our business offices with integrated ISO certification, and for staff members in charge of environmental matters at our overseas offices. We also held seminars on laws and regulations for staff members in charge of business offices and those in the product lifecycle departments.

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