Otsuka

No leading practices were identified in the governance and strategy measurement area for this company.

Solid and air pollution
The company discloses the proportion of hazardous waste treated to reduce pollution compared to total waste, the hazardous waste diverted from disposal and the waste directed to disposal. The company reports some activities to reduce plastic use and waste in its own operations.

No leading practices were identified in the social inclusion and community impact measurement area for this company.

Sustainability strategy and accountability
While the company has some targets regarding GHG emissions, waste management, packaging and water management, no evidence that the company has group wide targets on key sustainability topics for the most material parts of its value chain could be found in the public domain. While Otsuka has some targets regarding GHG emissions, waste management, packaging and water management, but it does not disclose group-wide targets on key sustainability topics for the most material parts of its value chain. The company reports consistently against all its targets. While the company discloses its Board is in charge of promoting sustainability within the company, no evidence that the company assigns decision-making and oversight responsibility for its sustainability strategy to the highest governance body could be found in the public domain. No evidence was found that the company links performance criteria in senior executives’ remuneration policies to targets and objectives which cover nature, including biodiversity, and social issues. While the company discloses its Board’s skills matrix along with the rationale for selection, no evidence that the company’s highest governance body has expertise with respect to its most material pressures on nature could be found in the public domain.

Stakeholder engagement
The company does not disclose an overview of the issues raised during its stakeholder engagement activities. The company does not disclose its process for engaging with stakeholder groups beyond its materiality assessment.

Lobbying
The company does not report on its lobbying and advocacy practices on nature-related issues, nor whether these activities align with its sustainability strategy.

Impact and dependencies assessment
The company has not holistically assessed its impacts or how it depends on nature, including biodiversity. It has an opportunity to start such an assessment across its value chains, focused on quantification of its impacts or dependencies.

Key areas and species
The company does not disclose key species or areas important for biodiversity affected by its operations or suppliers. It has an opportunity to increase its transparency.

Ecosystem conversion and restoration
No evidence was found regarding the company’s efforts to avoid ecosystem conversion, including deforestation, or promote restoration. The company has an opportunity to develop a strategy and publicly report on specific, time-bound targets.

Resource exploitation and circularity
No evidence was found regarding the company’s efforts to work towards a circular economy or which organisms it exploits. The company has an opportunity to develop a strategy and publicly report on specific, time-bound targets. The company does not disclose efforts to improve soil health.

Water
The company demonstrates it is reducing water withdrawal in its own operations. The company does not disclose a time-bound target to reduce water withdrawal across its own operations. The company does not report how much water is withdrawn for its own operations in water-stressed areas. The company does not engage with suppliers to reduce water withdrawal. The company does not report a decrease in water pollution. The company does not disclose its processes for managing and monitoring discharge water quality. The company does not regularly report on water pollution. The company does not disclose targets to reduce water pollution. The company does not disclose a commitment to respect the right to water. The company does not disclose its processes for implementing preventive and corrective action plans for identified specific risks to the right to water and sanitation in its own operations.

Solid and air pollution
No evidence that the company reduces the production of hazardous substances was found. The company does not disclose a commitment to avoid developing or marketing new chemicals or products with SVHC (substance of very high concern) properties. No evidence that the company is reducing the production of hazardous waste was found. The company discloses a decreasing trend in its PET and other types of plastic consumption. The company does not report on the amount of plastic waste generated and proportions directed from or to disposal. The company does not report on air quality parameters of emissions of harmful air pollutants. The company does not report time-bound targets to reduce air pollutants across the most material parts of its value chain.

Greenhouse gas emissions
The company is reducing its GHG emissions across all scopes. Otsuka commits to a 30% reduction in GHG emissions by 2030 from a 2017 baseline, across all scopes. The company reports progress against its scope 1 and 2 emissions target. While Otsuka has a reduction target across all scopes, it is alignes with a 2-degree trajectory and no further evidence that the company’s target is aligned with a 1.5-degree trajectory was found.

Invasive species
The company has not identified any activities that could lead to the introduction of invasive alien species in its own operations.

Safe, healthy, clean and sustainable environment
The company does not disclose a commitment to respecting local communities’ right to a safe, clean, healthy and sustainable environment or to zero tolerance for acts of violence, threats, intimidation or judicial harassment committed against land and environmental rights defenders.

Indigenous Peoples’ and land rights
The company does not disclose a commitment to respecting Indigenous Peoples’ rights or land rights of local communities.

No evidence that the company describes the process for identifying its human rights risks and impacts in specific locations or activities, covering its own operations was found. The company describes the process for identifying human rights risks and impacts in its business relationships. The company describes its process(es) for assessing its human rights risks and discloses what it considers to be its salient human rights issues. Otsuka discloses it conducts PDCA cycle to resolve the group’s salient human rights risk, which includes the multiple steps like evaluation, improvement plans, promotion, education and risk management to address its most salient issues. The company discloses categories of stakeholders whose human rights have been or may be affected by its activities. No evidence that the company provides examples of its engagement with stakeholders whose human rights have been or may be affected by its activities was found.

The company has a publicly available policy statement which shows it is committed to respecting the health and safety of workers. The company has a publicly available policy statement which shows it expects its suppliers to commit to respecting the health and safety of their workers. While Otsuka discloses it aligns with minimum wage requirements, no evidence that the company discloses a time-bound target for paying all workers a living wage or that it has achieved paying all workers a living wage was found. No evidence that the company describes how it determines a living wage for the regions where it operates was found. While the company states that it expects its suppliers to pay wages that are appropirate, it has an opportunity to disclose how it works to support the payment of a living wage by its suppliers. The company has an opportunity to disclose the coverage of collective bargaining agreements. The company has an opportunity to describe how it works to support the practices of its suppliers in relation to freedom of association and collective bargaining.

The company discloses a global tax strategy. The company has an opportunity to disclose a policy on bribery and corruption and its processes for identifying and addressing bribery and corruption. No evidence that the company includes anti-bribery and anti-corruption clauses in its contracts with business relationships was found. The company does not disclose its approach to lobbying and political engagement in a public policy document.