Sustainability at the Terumo Group

Terumo Group Sustainability Policy

Based on the Group Mission of Contributing to Society through Healthcare, Terumo believes that its social mission (corporate purpose) is to lead the advancement of healthcare and the enhancement of patients’ QOL. To achieve this, Terumo will strive for the utmost quality in all activities, create solutions of value by utilizing new technologies, and spread those solutions globally.

Amid drastic changes in social and global environments, Terumo will also take leadership toward solving a variety of social issues, and to meet the expectations of its broad range of stakeholders.

Through these sustainability efforts, Terumo will contribute to the realization of a sustainable society, create new Terumo strengths and culture, and bring about sustainable corporate growth. With the Core Values and Group Code of Conduct as guides, we will meet the future challenges of healthcare and society together as Terumo Group associates.

Terumo Group Identity

Sustainability Priorities

Based on the Terumo Group's Sustainability Policy, we have identified seven sustainability priorities we will focus on to realize our Group mission. These priorities are classified into the categories of "Social value creation" and "Foundation supporting social value creation."

Social value creation

We have defined “Resolving healthcare challenges” as the most important sustainability priority for us and will focus on contributing to the advancement of healthcare and the enhancement of patients’ quality of life. By doing so, we will create value for society and strive to realize a sustainable society as well as the Group’s sustainable growth.

Foundation supporting social value creation

As a foundation to support the creation of social value, we have set six sustainability priorities including "Pursuing total quality," "Promoting active participation of associates," "Reducing the environmental impact," and "Lives and human rights of associates and business partners. While responding to various social demands, we will build a solid business foundation through our unique activities.

The Process to Determine Sustainability Priorities

The Terumo Group determines priorities according to the following process.

Identify potential issues

Referring to sustainability guidelines and standards such as those published by GRI^*1 and SASB^*2, comprehensively identify which sustainability issues concern the Terumo Group.

Prioritize

Evaluate how important these issues are for the Terumo Group, in terms of their importance to stakeholders and relevance to our group Mission and other related policies. Select those that are highly important to both parties.

Determine priorities

Taking into consideration the current status of initiatives within the Terumo group, determine the sustainability priorities from among those that had been selected for their high level of importance. The executive management meeting and the board of directors meeting then deliberates over the priorities that were identified to confirm that they are appropriate.

• *1

  GRI (Global Reporting Initiative)
  A non-profit organization based in the Netherlands that advocates sustainability reporting guidelines

• *2

  SASB (Sustainability Accounting Standards Board)
  A non-profit organization in the US that aims to develop and spread sustainability accounting standards

Sustainability Management

The Sustainability Committee under the Executive Management Committee develops action policies and priorities related to sustainability, including CSV and ESG, finds ways to disseminate them throughout the Terumo Group, and promotes specific initiatives, by working together with relevant departments and the Group companies. The Sustainability Committee also monitors the progress of the initiatives and KPIs for CSV and ESG and reports them regularly to the Executive Management Meeting and the Board of Directors meeting. Matters raised at the Executive Management Meeting and the Board of Directors meetings are fed back to the relevant departments or Group companies to improve the initiatives. Terumo also interacts with internal and external stakeholders, sharing information and engaging in discussions to understand society's expectations to the Terumo Group, and reflects them in the initiatives.

Participation in the United Nations Global Compact

In 2012, Terumo became a signatory of the United Nations Global Compact. This action reflects Terumo’s agreement with the Ten Principles of the compact, which relate to human rights, labor practices, the environment and anticorruption measures. Under the group mission of “Contributing to society through Healthcare”, the Terumo is striving to practice these principles in the course of business operations.

The Ten Principles of the United Nations Global Compact