Sustainable Procurement

At Eisai, we recognize that companies bear responsibility for ensuring socially and environmentally conscious business activities throughout the entire supply chain. To maintain a stable supply of products, it is essential to continuously identify and mitigate sustainability risks within their supply chain. Guided by the spirit of coexistence and co-prosperity, we are strengthening collaboration with our business partners—including raw material suppliers, contract manufacturers, subcontractors, trading companies and wholesalers—through our “Sustainable Procurement” initiatives with the aim of contributing to the realization of a sustainable society and enhancing corporate value for both our company and our business partners. These efforts are led under the supervision of the Corporate Officer in charge.

Sustainable Procurement Program

Our Sustainable Procurement activities follow a four-step framework:

(1) Policy and Program Communication – We explain our sustainability policy and sustainable procurement initiatives to suppliers^*1

(2) Agreement to the "Eisai Global Code of Conduct"– Suppliers are required to sign an agreement to comply with the Eisai Global Code of Conduct for Business Partners

(3) Third-Party Sustainability Evaluation – We monitor and evaluate supplier sustainability performance using EcoVadis third-party evaluation platform^*2

(4) Continuous Improvement through Engagement – Based on EcoVadis assessment results, we conduct interviews to provide feedback and support suppliers in strengthening their sustainability practices.

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  We hold briefing sessions for key domestic suppliers of direct materials to explain our sustainability initiatives and sustainable procurement framework. In these sessions, we explain our sustainability initiatives and provide an overview of our sustainable procurement program. We also invite external experts to provide lectures to promote suppliers' understanding and raise their awareness of the sustainable procurement program.

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  EcoVadis SAS provides a comprehensive corporate social responsibility (CSR) assessment covering environment, human rights and labor, ethics, and sustainable material procurement, aligned with the items in our Code of Conduct. Suppliers complete self-assessments using EcoVadis evaluation platform, and Eisai continuously monitors progress of sustainability improvement via EcoVadis score. Suppliers scoring below defined thresholds are requested to implement corrective actions and undergo re-evaluation within a set timeframe (every three years for low-risk suppliers).

Membership in PSCI (Pharmaceutical Supply Chain Initiative)

Since sustainability challenges in the supply chain are best addressed at an industry-wide level through shared knowledge and results, in January 2021, our company joined the Pharmaceutical Supply Chain Initiative (PSCI), a global non-profit organization that promotes responsible supply chain management across the pharmaceutical sector.

Eisai Global Code of Conduct for Business Partners

The Eisai Global Code of Conduct for Business Partners ("Code of Conduct") sets forth minimum requirements for business partners, including compliance with law, ethics, human rights and labor standards, health and safety, environmental protection, and management systems. The Code of Conduct aligns with the PSCI Principles (Pharmaceutical Industry Principles for Responsible Supply Chain Management). To further strengthen sustainability within our supply chain, we revised our Code of Conduct in June 2024, following the update of the PSCI Principles in May 2023.

Promoting Sustainable Procurement

Supply Chain of Production Sites in Japan

Results from FY2020-FY2024

Since FY2020, we have been implementing sustainable procurement in the supply chain of our plants in Japan and overseas, targeting Tier-1 suppliers of major direct materials (including raw material suppliers, contract manufacturers, service providers, and procurement agents). For Tier-1 suppliers that are wholesalers or trading companies, we have extended the program to their upstream Tier-2 suppliers (raw material manufacturers). During the five years through FY2024, we held 7 briefing sessions on sustainable procurement, attended by 232 domestic suppliers; 28 major overseas suppliers were briefed individually. To date, we have received signed agreements to comply with the Code of Conduct from 160 Tier-1 suppliers (70.6% on a trading volume basis*¹); and 82 of the 147 targeted Tier-2 suppliers.

To date, a total of 143 suppliers have participated in the EcoVadis sustainability assessment (58.1% of total trading volume^*2). Results of the evaluation show that none were classified as high risk in overall score or individual score on human rights, environment and ethics. In terms of engagement to raise the level of sustainability throughout our supply chain, individual meetings were conducted with 35 suppliers over the five-year period from FY2020 to FY2024 to promote improvement through dialogue and feedback.

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  Although the agreement submission rate has declined compared to the previous fiscal year, the number of companies submitting agreements has increased. This is due to a change in calculation methodology: starting this fiscal year, the total transaction amount is used as the denominator, and this transaction amount has increased.

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  Although the EcoVadis participation rate has declined compared to the previous fiscal year, the number of participating companies has actually increased. This is due to a change in calculation methodology; starting this fiscal year, the total transaction amount is used as the denominator, and this transaction amount has increased.

FY2025 Initiative Plans

We will continue holding supplier briefings to deepen our suppliers' understanding of the importance of sustainability and Eisai's policies. External experts will also provide lectures on global sustainability trends and evolving environmental and human rights legislations.

Sustainable procurement initiatives for our group companies in Japan began in FY2023.

Supply Chain of Overseas Production Sites

FY2022-FY2024 Initiatives

Regarding the supply chain of our overseas plants, we have introduced sustainable procurement for major Tier-1 suppliers of direct materials at the Vizag plant (India), Suzhou plant (China), and Bogor plant (Indonesia). We received agreements to comply with the Code of Conduct from 68 suppliers of the Vizag plant, 19 suppliers of the Suzhou plant, and 17 suppliers of the Bogor plant. Coverage on a trading volume basis (excluding intra-group transactions) reached 100.0% in the Vizag plant, 74.8% in the Suzhou plant, and 98.0% in the Bogor plant including suppliers whose agreements have already been received at the head office in Japan. EcoVadis evaluations were completed by 37 companies for Vizag plant, 22 companies for Suzhou plant, and 5 companies for the Bogor plant. Our Hatfield plant in the U.K. is also implementing the same Sustainable Procurement Program with Tier-1 suppliers of direct materials at the time of contracting.

FY2025 Plans

At Suzhou, 3 suppliers were classified as high risk based on the EcoVadis scoring criteria. These suppliers, along with other suppliers deemed to need significant improvement based on specific scores (human rights, environmental issues, etc.) will be prioritized for corrective action. Engagement with these suppliers through individual meetings and follow-up will be a key focus in FY2025.

Sustainable Procurement of Indirect Materials

In FY2022, we established the "ENW Global Procurement Standards" applicable to all procurement activities of Eisai group companies. In FY2023, we continued to strengthen enforcement of these standards. For indirect material suppliers above a certain transaction value, we requested agreement to the Code of Conduct when signing or renewing contracts. We plan to continue these efforts in FY2024.

Supplier Selection and Collaboration Framework