PeptiDream : Sustainability Report 2022(3.0 MB)

Contribution to people around the world.

Hearing a " thank you" from even one patient, is what we strive for.

This is our Dream at PeptiDream.

Sustainability Report 2022

CONTENTS

01 CEO Message

02 2021 Sustainability Highlights

03 Key Sustainability Issues

(Materiality)

04 Sustainability Promotion Framework

05 Our Major Stakeholder Groups

06 External Recognition

07 Corporate Governance Initiatives

16 Social Initiatives

21 Environmental Initiatives

23 References (Data & Policies)

01 CEO Message

PeptiDream Sustainability Report 2022

"In the next decade, we aim to become a Drug Discovery Powerhouse in which drug candidate compounds discovered and optimized by PeptiDream will be distributed

to pharmaceutical companies and academic institutions globally, to be developed	"
as cutting-edge therapeutics and diagnostics for a wide variety of diseases.
Message from the CEO

Patrick C. Reid

Representative Director, President and CEO

Since 2017, when I became CEO, my aspiration has been to build and grow PeptiDream into a leading global peptide discovery company, and to be a shining example of Japan biotech. Our innovative drug discovery platform system, PDPS (Peptide Discovery Platform System) is the cornerstone of PeptiDream's business model that drives this aspiration. By utilizing the PDPS, I do not see any disease that cannot be therapeutically targeted by our macrocyclic peptides. The efficiency and speed of PeptiDream's hit finding process creates sustainable value by delivering safe and innovative therapies to patients as early as possible.

2021 has been a remarkable year for us in accelerating our growth and innovation. Despite the challenging global effects of the pandemic, we have made exciting progress across our pipeline. Our R&D portfolio has spread across a variety of aspects, including radiopharmaceuticals, coronavirus infectious disease drugs, and nucleic acid drugs. News of breakthrough in oral administration of macrocyclic peptides brought tremendous impact to the science world. The establishment of our Sustainability Governance Committee has been effective in promoting discussion and decision making on ESG activities internally. We want to use limited resources even more efficiently, therefore we made the decision to completely

switch to renewable energy within our operations from January 2022.

In the next decade, we aim to become a Drug Discovery Powerhouse in which drug candidate compounds discovered and optimized by PeptiDream will be distributed to pharmaceutical companies and academic institutions globally, to be developed as cutting-edge therapeutics and diagnostics for a wide variety of diseases. Towards this goal, it is my job to drive a fundamental transformation of the business to ensure sustainable value for PeptiDream. Our leadership team, founders, and employees understand that there is no significance for the presence of PeptiDream unless we continue to contribute to the sustainable growth of the society and humanity.

More broadly, as a collaboration company that has more than 120 research programs with partners worldwide, we believe understanding and addressing the needs of patients, colleagues, partners, shareholders, and communities is truly essential in creating a sustainable future for PeptiDream. I will continue to commit to delivering environmental and social impact and strive to integrate and embed these efforts within our organization and into our business.

02 Sustainability Highlights

2021

Sustainability Highlights

PeptiDream Sustainability Report 2022

Ratio of Independent External Directors 57.1%, Appointed a Female Director in 2021

Appointed a lead Independent

External Director to enhance dialogue

with shareholders and investors

Appointed an Independent External

Director as Chairman of the Board of Directors

Establishment of Sustainability and

Governance Committee from 2021

Ensuring diversification of Core

Human Resources* and establishment

of targets for 2030

• Ratio of doctorate (Ph.D.) holders: At least 50%
• Female manager ratio: At least 30％
• Ratio of foreign employees or employees with overseas work experience**: At least 30％
• Ratio of employees (in 20s/30s): At least 30％

Female employees, the driving force behind corporate growth, account for 28.2% and 18.4% as female managers

• Managers and senior-ranking specialists (excluding Directors)
• Employees with overseas research or work experience (excludes periods of less than one year and periods as a student studying abroad)

Supporting Japan's leading wheelchair rugby athletes

Made decision to switch 100% to virtually CO2-free electricity across our business operations

Reduced 1.49 t CO2 (YoY) for CO2 emissions per employee (Scope1* + 2**)

• Direct GHG (greenhouse gas) emissions (fuel combustion, industrial processes) from business operations
• Indirect emissions associated with the use of electricity, heat, and steam supplied by other companies

• Scope of Report: PeptiDream Inc.
  Reporting period: FY2021 (January 1st, 2021, to December 31st, 2021)

03 Materiality

Key Sustainability Issues (Materiality)	to stakeholders
We identified 10 priority issues (materiality) by prioritizing topics which are important to our stakeholders and our business.	Importance

PeptiDream Sustainability Report 2022

Materiality Map	10

priority

issues

Degree of importance

Importance to business

	Environment
	(Consideration for the Global
	Environment)
1	CO2 emission reduction and climate
change
2	Reducing waste
3	Effective use of water resources and
prevention of water pollution

	Social
	(Social Initiatives)
4	Resources*Diversification of core human
5	Respect for diversity and creation of
decent working environment
6	Respect for human rights and observance
of occupational health and safety
7	Contribution to local communities

* Managers and senior-ranking specialists (excluding Directors)

	Governance
	(Governance)
8	Corporate governance
9	Dialogue with shareholders, investors,
and the broader community
10	Compliance and risk management

COLUMN 1 Contributing to the UN Sustainable Development Goals (SDGs)

The Sustainable Development Goals (SDGs), adopted by the United Nations in September 2015, are 17 goals to resolve environmental and social issues for the achievement of a sustainable society by 2030.

We believe that solving SDGs issues is a key management issue. We will contribute to the achievement of SDGs, focusing on Development Goal 3 "Health and Welfare for All" through our research activities.

04 Sustainability Promotion Framework

Sustainability Promotion Framework

PeptiDream Sustainability Report 2022

We established the Sustainability and Governance Committee, an advisory committee for our Board of Directors that deliberates and monitors issues related to sustainability and governance; the Sustainability Promotion Office, a dedicated organization to promote measures tackle sustainability issues; and the ESG Task Team, which promotes internal efforts across functions to address environmental issues within the company.

In 2021, during the first year of the establishment of the Sustainability Governance Committee, two committee meetings were held. Members discussed the direction and implementation of our sustainability strategy.

Board of Directors

Nomination and Compensation

Committee

Sustainability and Governance

Committee

Chairperson: Junko Utsunomiya

(Independent External Director)

Independent		Independent	Internal
External Director		External Director	Director
		Sustainability	Promotion
			Office
		ESG task team

COLUMN 2 To Reflect the Executive Compensation of ESG

To measure the short-term and medium-tolong-term performance of our Directors, we have established two performance indicators: quantitative assessment indicators and qualitative assessment indicators.

For qualitative assessment indicators, eight items, including initiatives related to sustainability, were set as indicators. Each member of the Nomination and Compensation Committee independently assessed each item and the degree of achievement was determined by a comprehensive assessment and discussions based on these items. The weight of the quantitative assessment coefficient and the qualitative assessment coefficient is determined in advance for each fiscal year by the Nomination and Compensation Committee after comprehensively considering factors such as the business environment (see page 12 for details).