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Message from the President

Since our founding, the SUNDRUG Group has worked to contribute to society through our business activities. With the warm support of our customers, our aim is to realize healthy, rich lives for the Japanese people. Our basic stance of supporting the daily lives of our customers in this era of centenarians and solving the various challenges of a healthy, long-living society through the development of our core Drugstore Business and Discount Store Business will remain unchanged.

Meanwhile, awareness of environmental and social issues such as preservation of the global environment, effective utilization of resources, and respect for human rights and expectations for the role of corporations in solving these issues are increasing worldwide. We believe that solving these environmental and social issues is consistent with the realization of healthy, rich lives, which is our reason for existence. In light of these changes in the business environment, we will work even harder to put ESG management, which links ESG to business strategies, into practice.

What we believe is important when carrying out ESG management is to promote corporate activities that not only solve social issues but also secure the profits necessary for commercial viability. ESG activities are not an extension of social contribution activities but an investment in the business foundation necessary for the Group to continue creating economic value into the future. By positioning ESG activities as activities to increase economic value, we will be able to promote a culture in which every member of the Group incorporates ESG into their work as something that concerns them individually at each stage of business development so that the entire Group comes together to take it on.

We will aspire to be a corporate group that creates social and economic value which contributes to the realization of a sustainable society while contributing to the achievement of SDGs*1based on our business development capabilities backed by organizational strength.

Thank you in advance for your continued understanding and support.

*1. SDGs: Sustainable Development Goals
These goals for the international community were adopted at the Sustainable Development Summit of the United Nations General Assembly in September 2015. The 17 goals and 169 targets call for universal action to end poverty, protect the planet, and ensure that by 2030 all people enjoy peace and prosperity.

President and Representative Director
Hiroshi Sadakata

Basic Policy on ESG Activities

“Creating good cheer and fun in daily life to realize healthy, rich lives for the Japanese people.” This is the Corporate Philosophy of the SUNDRUG Group. It is the driving force that has allowed each employee of our Group companies to continue helping society through our business.

Achieving social stability and sustainable development by solving environmental and social issues is a must if we are to realize this Corporate Philosophy. The Group supports the promotion of sustainable development goals (SDGs) and believes in the importance of actively working on ESG to contribute to these goals and fulfilling the role expected of us as a social entity by all of our stakeholders.

In addition, we have set forth our business stance of seeking three-way benefit to complement our Corporate Philosophy. To think out transactions and methods that mutually benefit our stakeholders, including customers, employees, shareholders, business partners, communities, society, and the global environment and make the best decisions, we are working to raise awareness at various levels, from top management down to employees.

We have established an ESG Promotion Committee chaired by the President for the purpose of planning and promoting group-wide ESG management. The committee regularly reviews material issues under the direction and approval of the Board of Directors and is in charge of summarizing and reviewing progress on initiatives to solve material issues. It also reports to the Board of Directors on the results. By including an ESG promotion system within our corporate governance structure, we will further improve the effectiveness of corporate governance.

The Group will play an active role in promoting ESG by having each member of management and each employee fulfill their potential. We will actively engage in meaningful activities to solve social issues and improve corporate value, thereby meeting the expectations of our stakeholders.

ESG promotion system

1. Details of discussions at meetings of ESG Promotion Committee

The ESG Promotion Committee discusses medium- to long-term company-wide topics and directions, including material issues (materiality) related to sustainability and corresponding targets. It also engages in specific discussions on measures addressing individual topics such as identification of and countermeasures for environmental and social risks, promotion of women’s advancement, social contribution activities, and disclosure of ESG (non-financial) information.

2. Identification and management of environmental and social risks

We have established an ESG Promotion Committee chaired by the President for the purpose of planning and promoting group-wide ESG management. It is a committee under the direct purview of the President and Representative Director on par with the Compliance and Risk Management Committee and the Safety and Health Committee. It regularly reviews material issues under the direction and approval of the Board of Directors and summarizes and reviews progress on initiatives to solve material issues. It also reports the results to the Board of Directors. In response to the reports on the details of discussions by the ESG Promotion Committee, the Board of Directors discusses and supervises long-term ESG targets and progress on initiatives.

3. Formulation of activity plans in each department

Employees are familiarized with the various measures and decisions approved by the ESG Promotion Committee and reported to the Board of Directors via the internal network. The ESG Promotion Committee also shares relevant information through reporting sessions held with each department within the Company. In addition, based on those decisions, each department and office 1) analyzes and checks legal systems and regulations related to the business activities of each Group company and business and 2) sets targets for environmental, social and governance initiatives based on that analysis and confirmation and establishes action plans for achieving those targets at the beginning of the year.

4. Internal education

Sustainability and ESG are increasing in importance, and to promote these activities, the SUNDRUG Group believes that it is important that each employee understands the background behind the calls for active efforts and the Group’s thinking on ESG activities and that this is incorporated into their work. We provide training in lecture format through new employee training, annual training, store manager meetings, and more as well as e-learning.

promotion system

Priority issues

The SUNDRUG Group has identified material issues (materiality) to prioritize in order to fulfil our social and economic role as a social entity.

1. Background behind identification of material issues (materiality)

The Group aims to “create good cheer and fun in daily life to realize healthy, rich lives for the Japanese people,” which is our Corporate Philosophy, through drugstore, dispensing pharmacy, cosmetics store, and variety store operations.
In order to realize this Corporate Philosophy, the Group has come together to fulfill our mission as a part of the service infrastructure in the local community from both a short-term and long-term perspective.
For the Group to improve both social and corporate value, it will be necessary to identify management issues and to plan and implement appropriate measures to solve those issues after accurately ascertaining business opportunities and risks. As a part of this process, we identified material issues.

2. Identified material issues

The Group identified five material issues.
As our initiatives for solving material issues will lead to solving not only social issues but also management issues facing the Group, which then will result in further strengthening of the corporate structure, we will work on every issue in a balanced manner.

3. Process of identifying material issues

We selected material issues from a variety of perspectives, referencing international guidelines and sustainable development goals (SDGs) and considering current and future changes in the social structure, importance in the Group’s management, opportunities and risks, based on reaffirming the Corporate Philosophy.
On the basis of a list of these selected issues, the ESG Promotion Committee reviewed rough plans for each environmental, social and governance item. These were then discussed by the Board of Directors at a meeting chaired by the President for identification and approval.

4. Integration of material issues in management

The Group will pursue both its vision for society and business opportunities by integrating the identified material issues in management plans and management. Specifically, we will reflect them in an action plan for contributing to achievement of SDGs through strategic allocation of management resources and value creating activities.
Recognizing that the Group is both an economic and a social entity, we will develop strong connections with various stakeholders in society and enthusiastically fulfill our responsibilities to contribute to the creation of a sustainable society and ensure sustainable growth of the Group.

Material issues
(ESG)
Direction of initiatives Related SDGs
Promotion of environmental management
(E)
・Incorporate action on environmental conservation in all areas of management and contribute to the creation of a recycling-oriented economy and society that effectively utilizes energy and resources without waste
Promotion of compliance management
(S)
・Take action based on the criteria of what is best for our customers, employees, shareholders, business partners, communities, society, and the global environment
・Promote fair and appropriate management with the values and ethics required of us as a company and business people who are members of society, going beyond legal compliance
Establishment of satisfying working environment
(S)
・Develop workplaces in which human resources with diverse values from various backgrounds can be themselves and shine where they are
・Work to improve the competitiveness of the Company through active human investment, organizational reform, and enhancement of the personnel system to draw out the latent potential of each employee
Contribution to healthy, rich lives
(S)
・Work to propose and provide the healthcare products and services necessary for the daily lives of local customers, provide safety, reliance and convenience, and contribute to the creation of good cheer and fun in daily life
・Combine digital (ICT), physical (stores), and format (drugstores, discount stores, and new formats) to provide customers with new added value
Promotion of governance management
(G)
・Apply various viewpoints to management of the Board of Directors and enhance and strengthen the system for appropriately determining the overall direction of the Group and monitoring its implementation
・Properly manage a wide range of sustainability risks to simultaneously maximize opportunities and minimize threats



ESG data


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