Eisai’s Materiality (Material Topics)

Identifying Our Materiality

At Eisai, in order to clearly identify priority issues to be addressed to maximize corporate value over the medium to long term through the realization of our corporate concept, we are identifying materiality to effectively realize social good in accordance with our Articles of Incorporation, amended in June of 2022.

The horizontal axis for materiality is “Eisai’s Intrinsic Corporate Value (social impact + financial value)”, as we understand the importance of creating social impact and creating financial value by working toward the effective realization of social good.

The vertical axis is “Stakeholders’ Interests”. Based on the concept that it is efficient to focus on long-term investors, who are the beneficiaries of residual income, in order to sustainably maximize corporate value in a way that satisfies all stakeholders*¹, we have adopted a method of identifying and prioritizing the interests of long-term investors. At the same time, for this materiality, we have set the vertical axis so that it can be correctly understood that it is intended to create long-term benefits not only for long-term investors, but also for a wide range of stakeholders.

In accordance with the above two axes, we have identified 15 material topics. Among them, we have identified five topics of great interest to our stakeholders, especially long-term investors, that have a positive social impact and correlation with PBR, which we believe will enhance our intrinsic corporate value through our accelerated efforts, and we have established long-term objectives, KPIs, and risks for fiscal 2030. The new materialities and long-term goals, KPIs, and risks were set after deliberation and approval by the Executive Board (as of fiscal 2023*²) and with confirmation by the Board of Directors. Every year, we conduct reviews on the progress of these activities and aim to ensure their promotion through the PDCA cycle.

Furthermore, every year we conduct an analysis of our material topics in light of the business environment and social issues. We review progress in our efforts in accordance with our action plans, and revise our material topics and KPIs as needed.

• *² Changed name to Growth & Operating Committee (GOC)

Process of Identifying New Material Topics to Effectively Realize Social Good

*³ Sustainability disclosure standards provided by the Value Reporting Foundation that identify material topics by industry

*⁴ Indicators that concretely visualize the abstract concept of sustainability by the NPO Global Reporting Initiative, whose mission is to set international standards for sustainability

*⁵ Global framework launched in 2000 to realize sustainable growth

*⁶ Private sector-initiated Task Force on Climate-related Financial Disclosures (TCFD)

*⁷ International indicators chosen by the United Nations in September 2015, and set forth in the 2030 Agenda for Sustainable Development

*⁸ ESG indexes of U.S. company S&P Global to evaluate the sustainability of companies

*⁹ Toward realizing our corporate concept, spending time with patients and the people in the daily living domain or sharing experiences with them such as eating or working together in order to learn how they feel

*¹⁰ An initiative to conclude collaborative agreements with local governments and groups to create projects to identify and relieve the anxieties of local residents regarding people affected by dementia

Materiality Toward Effective Realization of Social Good through the hhc Ecosystem

*¹ Stakeholders: Long-term investors (shareholders), patients and their families, employees, and the community

*² For the material topics other than 1 to 5, the importance of the material topics within the same quadrant are equal

Related pages

• Realization of social good in dementia area
• Realization of social good in oncology area
• Realization of social good in global health
• Maximization of the value of human resources
• Financial strategies
• Enhancement of corporate governance (Enhancement of management oversight function)
• Enhancement of information disclosure
• Enhancement of information security
• Stable supply of high-quality products
• Compliance and risk management
• Protection and enhancement of intellectual property
• Business activities based on respect for human rights
• Environmentally friendly business activities
• Safety management on products
• Ethical and transparent drug discovery activities

1. Realization of Social Good in the Dementia Area
Long-term objectives, KPIs, and risks

*¹ Antibody for Alzheimer’s disease produced as the result of a strategic research alliance between Eisai and BioArctic. Collaboration with Biogen. Generic name: lecanemab
*² Japan, Americas, EMEA, China, Asia and Latin America
*³ Investigational. Discovered as part of research collaboration between Eisai and University College London

2. Realization of Social Good in the Oncology Area
Long-term objectives, KPIs, and risks

*¹ KEYTRUDA® is a registered trademark of Merck Sharp & Dohme Corp., a subsidiary of Merck & Co., Inc., Rahway, NJ, USA. Projects for Lenvima® are under joint development with Merck & Co., Inc., Rahway, NJ, USA
*² Investigational. Generic name: farletuzumab ecteribulin (FZEC)
*³ Investigational. Collaboration with PRISM BioLab
*⁴ Entered into a joint development agreement with Bliss Biopharmaceutical (Hangzhou) Co., Ltd. with option rights for a strategic collaboration

3. Realizing Social Good in the Global Health Area
Long-term objectives, KPIs, and risks

A fixed exchange rate of US$1 = 115 yen is used to avoid overestimating/underestimating the social impact due to exchange rate fluctuations.
 

*¹ In the 2024 Value Creation Report, the impact of DEC tablets used for two-drug regimen was calculated as half of the overall social impact of MDA implementation. However, the calculation method was revised to reflect the overall social impact of MDA implementation, rather than solely the impact of DEC tablets. This adjustment was made in consideration of the adoption of a new treatment regimen (triple-drug regimen) in the WHO treatment guidelines, as well as the importance of concomitant treatments and collaborative efforts with various partners in LF elimination. Accordingly, we have updated our social impact targets for FY2025 and FY2030.
*² Based on the WHO LF elimination target by 2030
*³ Antifungal agent developed by Eisai
 

For details, please visit here.

4. Maximization of Value of Human Resources
Long-term objectives, KPIs, and risks

5. Financial Strategies
Long-term objectives, KPIs, and risks

*¹ Rating by Rating and Investment Information, Inc. (R&I) (as of May 27, 2024)
*² An indicator to evaluate whether the company is efficiently generating social impact; the sum of the social impact of LEQEMBI® and DEC tablets was divided by equity. Calculation was based on those two important products in which the estimation of social impact was completed