Mitsubishi Tanabe Pharma : "Materiality" posted

In accordance with the corporate philosophy of 'contributing to the healthier lives of people around the world through the creation of pharmaceuticals,' the Mitsubishi Tanabe Pharma Group believes that its ability to survive and grow depends on the provision of social value and a contribution to the achievement of a sustainable society through the Group's business activities. To clarify that idea and reinforce our initiatives, we have designated material issues that we need to address as materiality. The Group has positioned these material issues as an important part of its decision-making process, and on that basis, the Group is implementing its business activities.

Process of Designating Material Issues

Step 1: Identify social issues that need to be considered

In designating material issues, the Group considered not only international guidelines and GRI standards but also SASB_*1 pharmaceutical industry evaluation standards, ATM index_*2 evaluation items, and others. In this way, social issues that need to be considered were identified in a comprehensive manner.

1. *1 : Sustainability Accounting Standards Board. An NPO based in the U.S. that sets and discloses sustainability evaluation standards by industry.
2. *2 : Access to Medicine Index. An index that analyzes and ranks 20 of the world's top pharmaceutical companies on how they make medicines more accessible. Implemented by the Access to Medicine Foundation, an NPO based in the Netherlands.

Step 2: Prioritize social issues

For the social issues identified in step 1, their importance for the Group was evaluated with consideration for such factors as the Group's values and major policies, strategies and specific activity objectives, and risk-related information.
In addition, to evaluate the importance of these issues for stakeholders, we analyzed and organized items that are considered to be important by evaluation institutions that work to promote responsible investing on behalf of external stakeholders. From these two perspectives, we created a materiality map and narrowed down the issues to those with high priority.

Step 3: Confirm appropriateness and designate material issues

We designated the material issues after the validity of the materiality map was confirmed through consultation with experts from inside and outside the Company.

Material Issues and Major Initiatives

For the seven material issues that were designated through the above process, we organized and confirmed their relevance in regard to major initiatives, the SDGs, the Group's Code of Conduct, and theMOS indices of KAITEKI upheld by the Mitsubishi Chemical Holdings Corporation (MCHC) Group, of which Mitsubishi Tanabe Pharma is a member.

* For further information about MOS Indices, please see the MCHC website.
http://www.mitsubishichem-hd.co.jp/english/sustainability/kpi/