Eisai CEO Haruo Naito Delivers Speech at “The Third Global Health Academy”Eisai's Initiatives for Value Quantification and Expectations for the Impact Market

April 27, 2023

On April 21, 2023, Eisai’s CEO Haruo Naito participated in the third Global Health Academy “New Corporate Value Index of “Impact” and Global Health -A New Proposal to the G7 Hiroshima Summit-”, held for Japanese media, and gave a presentation titled “Eisai’s Initiatives for Value Quantification”. The Academy was organized by the Business Leaders' Coalition for Global Health (hereinafter “the Coalition”) in which Eisai is a member. The Coalition’s leader Ken Shibusawa (Chief Executive Officer, Shibusawa and Company, Inc.), who also chairs the Study Group on “Impact Investment for Global Health” of the Cabinet Secretariat Office of Healthcare Policy, made a presentation on “Impact Economy1, the New Figure of Value and Society” based on the study group’s report. He mentioned that Prime Minister Kishida advocates a third axis of “impact” in addition to risk-reward in the “New Capitalism”, and highlighted the need for promoting “impact investment”. As the Japan’s impact investment market is still small and has potential for high growth, he hopes that an increase in new investment from the private sector for solving global health issues may enhance support for the Global South (emerging and developing countries) and lead to economic growth in Japan. He proposed that impact investment should be discussed as one of the agenda items in the field of global health at the G7 Hiroshima Summit to be held in Japan in May 2023, keeping in mind that the G7 will be held again in Japan in 2030, the year for achieving the SDGs.

After his presentation, members of the Coalition, CEO Naito, Katsuaki Watanabe, Chairman and Representative Director, Yamaha Motor Co., Ltd, Ken Shibusawa, Mihoko Kashiwakura, Head of East Asia Relations, Bill & Melinda Gates Foundation, took the stage and introduced their activities at the session themed “Global Health and Impact Lead by Japanese Companies".

For video of the event, please click here (in Japanese only)
For detailed information of the event, please click here (in Japanese only)

CEO Naito noted the significance of corporate efforts on addressing social issues together with the public, as well as the Kishida administration's “New Capitalism”, which calls for using impact (actions to address social challenges) as a new corporate value indicator in addition to conventional risk and return. CEO Naito also cited “How can Corporate Reporting Bridge the ESG Trust Gap?”2, which was published by Ernst&Young, sharing that systematic, strategic, and strict incorporation of sustainability in corporate business models is what investors expect, which is also consistent with Eisai’s view. He also introduced three examples of Eisai’s efforts for value quantification: 1. employment impact statement, 2. product impact accounting, 3. societal values to be brought by new Alzheimer's disease drugs. With that, he expressed his expectation on the formation of market segments, where impacts are measured as a valuation tool, as an idea for future finance concerning impacts amid expanding loans and impact investments measuring sustainable activities with KPIs.

Eisai’s initiatives for improving access to medicines, including activities to eliminate NTDs and malaria, go beyond the framework of CSR activities and aim at creating long-term value and social impact based on our corporate concept, human health care (hhc). We aim to contribute to relieving anxiety over health and reducing health disparities of people at risk of contracting neglected tropical diseases and those suffering from diseases by strengthening our global partnerships. 

1 “Impact economy” is a new type of economic society where domestic and overseas business operators and investors implement business creation and investment activities based on shared term “impact”.
Reference: Proposal by the Study Group on “Impact Investment for Global Health”, March 2023 (in Japanese only)
2 https://www.ey.com/en_us/assurance/how-can-corporate-reporting-bridge-the-esg-trust-gap (Accessed April 2023) 

About the Business Leaders' Coalition for Global Health

The Volunteer Group is an organization of Japanese companies and others contributing to global health (supporting and actively working in the fields of healthcare, especially public health and infectious disease control), led by Ken Shibusawa (CEO, Shibusawa & Company, Inc.). It is composed of executives from a wide variety of fields, including not only the healthcare sector, such as pharmaceuticals and medical devices, but also finance, trading, digital, supply chain, and more. Haruo Naito, Eisai’s CEO, is a member. 

The Volunteer Group believes that by optimizing the products and technologies of diverse sectors, including governments, we can provide comprehensive solutions to global issues, and to this end, the volunteer companies will work together under the same vision to promote Global Health Action. The Volunteer Group is considering the following four initiatives for the future. (Not all volunteer companies will participate in these initiatives.)
1. Consider specialized schemes and entities that promote the creation and strengthening of opportunities to collaborate with international health organizations such as WHO, Global Fund, Gavi Vaccine Alliance, etc.
2. Establish an All-Japan pavilion at international exhibitions and promotion of the advanced and attractive features of Japanese products that contribute to global health
3. Promote the introduction and participation in a system of "impact-weighted accounting" that quantifies and visualizes the impact of socially conscious products
4. Continue activities to bring corporate voices on international health issues to the government



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