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1、Takeda 2024 ESG DatabookFiscal Year Ended March 31,2024CORPORATE PHILOSOPHY METRICSEXPLANATION OF CORPORATE PHILOSOPHY METRICSPatient ImperativePeople ImperativePlanet ImperativeBusinessESG METRICSPatient Access to MedicinesPeople Talent Management Health&Safety DE&I Women in the WorkforcePlanet Min

2、imizing Environmental Impact Decarbonizing Conserving Natural Resources Environmental Management SystemsValues-Based GovernanceEXPLANATION OF ESG METRICSASSURANCE REPORT331548782TAKEDA 2024 ESG DATABOOKCorporate PhilosophyMetrics3For Takedas value creation model and how it relates to Corporate Philo

3、sophy Metrics,see 2024 Annual Integrated Report(page 11).3EXPLANATION OF CORPORATE PHILOSOPHY METRICS ESG METRICS ASSURANCE REPORTCORPORATE PHILOSOPHY METRICS TAKEDA 2024 ESG DATABOOKEXPLANATION OF ESG METRICSWHY IT MATTERSMETRICSFY2022FY2023PATIENTWe put patients at the center of everything we do.O

4、ur long-term success is based on discovering,developing and delivering life-transforming,safe and affordable medicines and vaccines that enhance the well-being of patients,communities and countries.We create a competitive advantage with our ability to bring innovative products to market in a timely

5、fashion.Building and maintaining the trust of stakeholders including health care professionals,customers,regulators and patients is also crucial for our sustainable business.To achieve this,we prioritize making our products affordable and accessible through reimbursement and patient assistance progr

6、ams(PAPs).Additionally,ensuring transparency through disclosures of clinical trial results and quality inspection results and securing uninterrupted supply plays a vital role.Achieving Pipeline Milestones#of pivotal study starts and approvals1829Disclosing Clinical Trial Results%of achievement for t

7、imely disclosure of clinical trial summary results on public registries100%100%Maintaining Uninterrupted Supply%of order lines dispatched on-time-in-full99.3%99.1%Upholding Manufacturing Quality%of health authority inspections with no regulatory compliance actions100%100%Global Access to Growth&Laun

8、ch Products2#of key countries where patients have access to the product through reimbursementALUNBRIG 9 TAKHZYRO 9 ALOFISEL 4 EXTIVITY 2 LIVTENCITY 2TAKHZYRO 9ALOFISEL 4LIVTENCITY 6Access to Medicines Programs in Low-and Middle-Income Countries and Countries with Evolving Health Care Systems#of newl

9、y enrolled patients in Takedas affordability-based PAPs1,3661,682PEOPLEHighly skilled,motivated and engaged employees are key to achieving our purpose of better health for people and a brighter future for the world.Creating a workplace that invests in the well-being of employees while respecting eac

10、h individual for who they are helps us attract and retain top talent.By building our employees professional skills in data,digital and technology,we accelerate innovation and improve outcomes for patients and society.By bringing together people with diverse backgrounds,cultures,identities and experi

11、ences we can incorporate a wide range of stakeholder voices in our decision-making.This helps ensure our science is optimized to better meet patient needs.Engaging EmployeesAverage score on a 1100 scale to questions regarding engagement in the annual Employee Experience Survey37977Improving Employee

12、 Well-beingAverage score on a 1100 scale to questions regarding well-being in the annual Employee Experience Survey36867Embracing DE&I(Gender Representation)Enterprise-wide gender breakdownMale 48.0%Female 51.8%Other/Non-Binary 0.2%Male 48%Female 52%Other/Non-Binary 0.1%Upskilling Employees in Progr

13、essive TechnologiesCumulative%of employees who have taken at least one data,digital and technology training course since the first quarter of fiscal year 202037%49%PLANETAs a global biopharmaceutical company,Takeda recognizes the clear link between human health and environmental health.The impacts o

14、f global issues such as climate change and biodiversity loss,present not only a threat to public health but to business operations as well.Guided by ambitious targets across climate change and nature,we are staying true to our values and commitment to put the patient first by integrating environment

15、al sustainability considerations into every facet of our operations and across our value chain.Reducing Scope 1&2 GHG Emissions%reduction in Scope 1&2 GHG emissions below 2016 baseline34%53%Engaging Suppliers toward Scope 3 GHG Reduction%of Takedas Scope 3 GHG emissions that are from suppliers who h

16、ave committed to setting science-based climate targets,aligning with SBTi standards45%56%Diverting Waste from Landfill%of waste diverted from landfills78%78%Conserving Freshwater%of reduction in freshwater below 2019 baseline7.9%4.9%Making Paper and Paperboard Packaging from Sustainable Forest Certi

17、fied or Recycled Content4%of the companys secondary and tertiary packaging paper/paperboard by weight that is recycled content or sustainable forest certified42%53%BUSINESSThe business growth allows us to deliver long-term value to the patients and communities we serve.Growth and Launch Products5 ar

18、e the key driver of future revenue growth,and a key indicator of our ability to successfully launch new products from our pipeline.Growth and Launch Product Incremental Core Revenue%of year-over-year core revenue growth in Growth and Launch Products vs.target96.1%79.5%1 Fiscal year 2023 results have

19、 been assured by KPMG AZSA Sustainability Co.,Ltd.(KPMG).2 We scope in our growth and launch products which had been launched within 5 years as of the beginning fiscal year 2023.3 Our measure for these metrics changed from“%favorable responses to questions regarding engagement in the Annual Employee

20、 Experience Survey”to the current measure to fully incorporate the entire range of survey responses.Results for fiscal year 2022 have been recalculated based on the current measure.4 The reporting period for this metric is fiscal year 2022.The data collection process for fiscal year 2023 will be con

21、cluded in fall of 2024 and the metric will be reported in the following year.5 Learn more about our Growth and Launch Products on page 30.*Our latest Annual Securities Report also presents our corporate philosophy metrics as a part of Corporate Sustainability Policies and Initiatives.Corporate Philo

22、sophy Metrics1*4EXPLANATION OF CORPORATE PHILOSOPHY METRICS ESG METRICS ASSURANCE REPORTCORPORATE PHILOSOPHY METRICS EXPLANATION OF ESG METRICSExplanation of Corporate Philosophy Metrics 5In this section,metrics marked with are assured independently by KPMG AZSA Sustainability Co.,Ltd.5TAKEDA 2024 E

23、SG DATABOOKEXPLANATION OF CORPORATE PHILOSOPHY METRICS ESG METRICS ASSURANCE REPORTCORPORATE PHILOSOPHY METRICS EXPLANATION OF ESG METRICSPatientBACKGROUND:Takeda Pharmaceutical Company Limited and its consolidated subsidiaries(referenced hereafter as“Takeda”or“the Company”)focuses on diseases with

24、the highest unmet needs to deliver high quality life-transforming medicines and vaccines to patients as quickly as possible.Regulatory Approvals and Pivotal Study Starts are important milestones demonstrating our progress to bring new treatments to patients.DEFINITION:This metric measures the achiev

25、ement of Regulatory Approvals and Pivotal Study Starts across different assets,indications and geographies(US,EU,Japan,China,Emerging Markets).Pivotal Studies are defined as registration-enabling clinical trials;trials that are intended to generate data in support of filing for regulatory approval.P

26、ivotal Study Start is defined as the first patient dosed in the pivotal study.CALCULATION METHOD:Sum of the absolute number of Regulatory Approvals and Pivotal Study Starts in the reporting period(fiscal year).The counts in this formula include the US,EU,Japan,China,and Emerging Markets.Pivotal Stud

27、ies that are global are counted as one Pivotal Study Start,not separately for each region included in the study.SCOPE:All Therapeutic Areas,Plasma Derived Therapies,Vaccines METRIC AND RESULTS:Achieving Pipeline Milestones 29 regulatory approvals and pivotal study starts(FY 2023)6EXPLANATION OF CORP

28、ORATE PHILOSOPHY METRICS ESG METRICS ASSURANCE REPORTCORPORATE PHILOSOPHY METRICS EXPLANATION OF ESG METRICSBACKGROUND:Takeda is committed to compliance with clinical trial transparency laws and regulations as well as to providing objective,unbiased clinical trial results reporting,regardless of out

29、come,including making clinical research information and results available to the public.Our policies meet or exceed the pharmaceutical industrys guidelines and best practices relating to the disclosure of clinical trial results on public registries and websites within one year after trial completion

30、(including results from phase 1 interventional clinical trials,which is not required by law).DEFINITION:This metric measures clinical trial summary results disclosed within one year of trial completion,regardless of trial outcome.CALCULATION METHOD:Percentage of achievement for timely disclosure of

31、clinical trial summary results on public registries,such as clinicaltrials.gov and EudraCT,and Takedas clinical trials website,which require disclosure within one year of trial completion.#of clinical trials with results released to public registries and websites within one year of trial completion/

32、#of clinical trials with results requiring disclosure(i.e.,clinical trials completed and terminated one year ago)*100%METRIC AND RESULTS:Disclosing Clinical Trial Results100%(FY 2023)SCOPE:While Takeda has been registering and disclosing clinical trials results for company-sponsored research since 2

33、002,for the purpose of this metric,which was established in 2021,only those studies completed in the FY22 fiscal year(i.e.,between April 1,2022 and March 31,2023)for which results were due to be posted within one year of trial completion were evaluated and considered.Scope of studies:interventional

34、phase 1-4 trials completed and terminated between April 1,2022 and March 31,2023.Studies which were divested,or for which an extension of the deadline for results disclosure on clinicaltrials.gov was granted as per regulation/PHS Act during the reporting period,have been excluded from the scope of t

35、his metric.Scope for disclosure websites:clinicaltrials.gov and Takedas clinical trials website for all studies from all regions;EMAs Clinical Trials Registry(EudraCT)for all studies conducted in the EU.ADDITIONAL INFORMATION:https:/ OF CORPORATE PHILOSOPHY METRICS ESG METRICS ASSURANCE REPORTCORPOR

36、ATE PHILOSOPHY METRICS EXPLANATION OF ESG METRICSBACKGROUND:It is important to ensure uninterrupted supply and delivery of our medicines and vaccines to people by managing our complex supply chain in an agile and sustainable way.DEFINITION:This measures our ability to dispatch the products to our cu

37、stomers accurately and in a timely manner.CALCULATION METHOD:Maintaining Uninterrupted Supply measures whether a received order line is dispatched on-time-in-full(or“OTIF”,i.e.the dispatch happened on the date requested by the customer and in the volume requested by customer),for any dispatch of fin

38、ished or traded goods from a Takeda entity to an external customer(pharmacies,hospitals,wholesalers,etc.)GMS(Global Manufacturing and Supply)Service Level number is the percentage of orders that have been dispatched successfully on-time-in-full over the total number of order lines.In case of delay t

39、o the dispatch directly caused by customers(outstanding payments above credit limit/delay of pick up by customer/shipment consolidation with a later shipment/etc),the line is accepted as dispatched OTIF.#of order lines dispatched on-time-in-full/Total#of requested order linesSCOPE:All dispatches to

40、external customers(pharmacies,hospitals,wholesalers,etc.)operated by Takeda or on behalf of Takeda.Data related to services to Teva Takeda Pharma LTD where Takeda is providing last mile distribution services post-dispatch are excluded.METRIC AND RESULTS:Maintaining Uninterrupted Supply99.1%(FY 2023)

41、8EXPLANATION OF CORPORATE PHILOSOPHY METRICS ESG METRICS ASSURANCE REPORTCORPORATE PHILOSOPHY METRICS EXPLANATION OF ESG METRICSBACKGROUND:It is important for Takeda to maintain a good reputation and remain in good standing with health regulatory authorities(“Health Authorities”)so that Takeda can c

42、ontinue to deliver our high quality medicines and vaccines to patients.Inspections can result in routine observations which Takeda responds to in a timely manner.The main criterion of the metric is based on the number of health authority inspections with no regulatory compliance actions following a

43、Good Manufacturing Practice(“GMP”)inspection.DEFINITION:Regulatory compliance actions include warning letter,drug removal,or a GMP certificate withdrawal.CALCULATION METHOD:Successful Health Authority GMP inspections are a measure of the health of our Takeda quality system.The annual result is based

44、 on the number of Health Authority GMP inspections with no regulatory complaince action,such as a warning letter or a GMP certificate withdrawal.The metric measures the percentage of Health Authority GMP inspections with no regulatory compliance action,with a 100%success rate as the target.#of healt

45、h authority inspections with no regulatory compliance actions /#of health authority inspections x100=X%Takeda reviewed the inspection data for approximately 400 inspections conducted globally in FY23.The review showed that no regulatory compliance actions resulted from the inspections.For FY23,there

46、 were no regulatory compliance actions taken METRIC AND RESULTS:Upholding Manufacturing Quality100%(FY 2023)against Takeda as a result of any inspections.For the evidence of the observations,the data was obtained from Takedas internal system.SCOPE:All Health Authority GMP Inspections executed at Tak

47、eda locations.9EXPLANATION OF CORPORATE PHILOSOPHY METRICS ESG METRICS ASSURANCE REPORTCORPORATE PHILOSOPHY METRICS EXPLANATION OF ESG METRICSMETRIC AND RESULTS:Global Access to Growth&Launch Products BACKGROUND:We are committed to providing timely,broad and sustainable access to our innovative medi

48、cines worldwide.DEFINITION:The number of select key countries where patients have access to our innovative medicines through reimbursement.Select Key Country Reimbursement Definition Criteria US The US is included in the number if the majority of patients have a pathway to reimbursement.Calculation

49、is based on insurance coverage data provided by a recognized private third-party company which covers a major selection of insurance providers nationwideJapanJapan is included in the number if the product has national reimbursementChina China is included in the number if the product has national rei

50、mbursement UK UK is included in the number if the product has(full or partial)national reimbursement Spain Spain is included in the number if the product has(full or partial)national reimbursement ItalyItaly is included in the number if the product has(full or partial)national reimbursement GermanyG

51、ermany is included in the number if the product has(full or partial)national reimbursement FranceFrance is included in the number if the product has(full or partial)national reimbursement CanadaCanada is included in the number if the product has public(full or partial)national reimbursement BrazilBr

52、azil is included in the number if the product has national reimbursement CALCULATION METHOD:We count number of countries where patients have access to the product through reimbursement based on the criteria below.SCOPE:Product scope:We scope in our growth and launch products which had been launched

53、within 5 years as of the beginning fiscal year 2023.Select key country scope:US,Japan,China,UK,Spain,Italy,Germany,France,Canada and Brazil(10 countries)#of select key countries where patients have access to the product through Reimbursement.*TAKHZYRO 9 ALOFISEL 4 LIVTENCITY 6 10EXPLANATION OF CORPO

54、RATE PHILOSOPHY METRICS ESG METRICS ASSURANCE REPORTCORPORATE PHILOSOPHY METRICS EXPLANATION OF ESG METRICSBACKGROUND:We believe broadening access to our life-transforming medicines and vaccines in underserved communities requires an integrated,sustainable approach to address barriers to access.Addr

55、essing affordability barriers to access is a key focus of our Access to Medicines approach.Takedas affordability-based Patient Assistance Programs are one of our approaches to address the affordability barrier.DEFINITION:Patients enrolled in Takedas affordability-based Patient Assistance Programs wi

56、thin a fiscal year.Enrollment in the PAP is subject to both individual means-testing to evaluate a patients ability to pay for treatment and medical eligibility criteria.CALCULATION METHOD:Number of newly enrolled patients in Takedas affordability-based Patient Assistance Programs over the fiscal ye

57、ar.SCOPE:Data Sources Implementing partners reports Key assumptionsPatient numbers are validated by external partners and submitted to Takeda monthly.External partners reports are subject to quality control processes prior to submission to Takeda.A patient is considered enrolled when the patient pro

58、vides a validated proof of purchase for the first course of medication.A patient who exited the program and subsequently re-enrolled is counted as 2 patients.LimitationsNo limitations on ensuring reported numbers are correct in all material respects.Programs in scopeAffordability-based Patient Assis

59、tance Programs Out of Scope ProgramsCharitable Assistance Programs,Named Patient Programs,Post-trial Access Programs,Institutional Requests for Unregistered Products,Individual Patient Requests,Non-affordability-tested Patient Assistance Programs,product donations(i.e.,disaster relief)Countries Coun

60、tries where Patient Assistance Programs are currently in place:Low-and middle-income countries and countries with evolving healthcare systems*Low Income,Lower-Middle Income and Upper-Middle Income countries per the World Bank,and Qatar,Singapore,United Arab Emirates and Venezuela.Therapeutic areas T

61、akeda has currently implemented Patient Assistance Programs for the following therapeutic areas:Gastroenterology,OncologyMETRIC AND RESULTS:Access to Medicines Programs in Low-and Middle-Income Countries and Evolving Healthcare Systems1,682 patients(FY 2023)11EXPLANATION OF CORPORATE PHILOSOPHY METR

62、ICS ESG METRICS ASSURANCE REPORTCORPORATE PHILOSOPHY METRICS EXPLANATION OF ESG METRICSDEFINITION:This metric shows employees feedback about working at Takeda,measured by the Annual Employee Experience Survey.Takeda measures Engagement levels by asking employees to rate the following statements:I fe

63、el proud to work at Takeda.I would recommend Takeda as a great place to work.I intend to stay with Takeda for the foreseeable future.My work gives me a sense of personal accomplishment.The survey is distributed through the survey provider,Glint.People metrics are inclusive of Takeda Pharmaceutical C

64、ompany Limited and its consolidated subsidiaries(referenced hereafter as“Takeda”).CALCULATION METHOD:The average score on a 1-100 scale for all responses received to the above four statements regarding engagement in the Annual Employee Experience Survey.SCOPE:All regular full-and part-time Takeda em

65、ployees(including fixed-term employees)hired before September 17,2023 were invited to participate in the survey.The survey closed October 6,2023.Contingent and contract workers and interns,as well as employees on leave were not included in the survey.PeopleMETRIC AND RESULTS:Engaging Employees77 ave

66、rage score on a 1-100 scale to questions regarding engagement in the annual Employee Experience Survey(FY 2023)12EXPLANATION OF CORPORATE PHILOSOPHY METRICS ESG METRICS ASSURANCE REPORTCORPORATE PHILOSOPHY METRICS EXPLANATION OF ESG METRICSDEFINITION:This metric shows how employees rate well-being a

67、t Takeda,measured by the Annual Employee Experience Survey.Takeda measures Well-being levels by asking employees to rate the following statements:I believe that my health and well-being is a top priority for Takeda.I am able to successfully balance my work and personal life.The stress levels at work

68、 are manageable.I am able to disconnect from work during non-work time.The survey is distributed through the survey provider,Glint.CALCULATION METHOD:The average score on a 1-100 scale for all responses received to the above four statements regarding engagement in the Annual Employee Experience Surv

69、ey.SCOPE:All regular full-and part-time Takeda employees(including fixed-term employees)hired before September 17,2023 were invited to participate in the survey.The survey closed October 6,2023.Contingent and contract workers and interns,as well as employees on leave were not included in the survey.

70、METRIC AND RESULTS:Improving Employee Well-being67 average score on a 1-100 scale to questions regarding well-being in the annual Employee Experience Survey(FY 2023)13EXPLANATION OF CORPORATE PHILOSOPHY METRICS ESG METRICS ASSURANCE REPORTCORPORATE PHILOSOPHY METRICS EXPLANATION OF ESG METRICSDEFINI

71、TION:This metric shows gender diversity of Takedas workforce and includes employees by gender(as a%of total workforce):Male;Female;Other/non-binary.Gender is self-selected at the date of hire.CALCULATION METHOD:Takeda employees for each gender divided by total headcount as of March 31,2024.METRIC AN

72、D RESULTS:Embracing DE&I(Gender Representation)48%Male 52%Female 0.1%Other/non-binary(FY 2023)SCOPE:Data scope limited to regular and dispatched employees as of March 31,2024 and excludes fixed-term employees as well as those on unpaid leave.A fixed-term employee is defined as a person with a define

73、d employment end date,and may or may not have a contract.Unpaid leave includes employees who are on leave for which the leave type has a payroll effect.A dispatched employee is defined as a person who is dispatched to a non-Takeda location,but is on Takeda payroll.14EXPLANATION OF CORPORATE PHILOSOP

74、HY METRICS ESG METRICS ASSURANCE REPORTCORPORATE PHILOSOPHY METRICS EXPLANATION OF ESG METRICSBACKGROUND:We must build our employees skills in data,digital and technology to speed innovation,improve outcomes and deliver on our commitments to patients.DEFINITION:This metric measures how many employee

75、s have taken at least one course designed to increase awareness and/or skills in a data,digital and technology topic starting from the first quarter of FY 2020.Definition of“data,digital and technology learning”:learnings that help participants acquire and develop the necessary skills to effectively

76、 i)conduct analysis and exploration using data ii)learn the use of relevant technology tools and systems iii)modernize the way Takeda employees work in support of data and digital transformation.This includes training on software applications,emerging technologies,digital marketing,social media,cybe

77、r security,Agile ways of working,cloud computing and other digital technologies.Because Takeda takes a blended approach to growing data,digital and technology skills across our company,courses include both formal learning programs that range from 1-hour in length to several days,as well as micro-lea

78、rning options,which are typically learner-driven and enable an already skilled employee to upskill in a new aspect of a topic in which they already have a solid foundation.These“micro-learning”opportunities range in length from as little as 5 minutes to an hour,and are designed to boost productivity

79、 and collaboration.METRIC AND RESULTS:Upskilling Employees in Progressive Technologies49%(FY 2023)CALCULATION METHOD:Total percentage of regular Takeda employees starting from the first quarter of FY2020 who have taken at least one data,digital and technology learning tracked in Takeda Learning Mana

80、gement Systems as well as other third-party content platforms that provide data,digital and technology learning opportunities to Takeda employees.Total#of regular Takeda employees at the end of the selected financial year who have taken at least one data,digital and technology learning tracked in Ta

81、kedas Learning Management Systems and other sources since the first quarter of FY2020/Total#of regular Takeda employees at the end of the selected financial yearSCOPE:Course participant data is tracked in Takedas Learning Management Systems:Takedas Cvent Event Registration System(instructor-led cour

82、ses);and other data,digital and technology content platforms,as mentioned above that have been flagged as containing data,digital and technology learning by our GDD&T Digital Culture and Talent Transformation team.Data scope limited to regular and dispatched employees as of March 31,2024 and exclude

83、s fixed-term employees as well as those on unpaid leave.15EXPLANATION OF CORPORATE PHILOSOPHY METRICS ESG METRICS ASSURANCE REPORTCORPORATE PHILOSOPHY METRICS EXPLANATION OF ESG METRICSPlanetMetricResultsPercent Reduction of Scopes 1+2 Emissions Since Base Year*53%MetricResultsPercentage Scope 3 Emi

84、ssions Categories 1,2 and 4 from Suppliers Committed to Setting Science-Based Climate Targets56%METRIC AND RESULTS:Reducing Scope 1&2 GHG EmissionsMETRIC AND RESULTS:Engaging Suppliers towards Scope 3 GHG Reductionemissions quantified using standardized methods.The Scope 1 GHG Emission Inventory,whi

85、ch includes all GHG emissions that occur from sources under the Companys operational control,was developed in accordance with the Greenhouse Gas Protocol:A Corporate Accounting and Reporting Standard,Revised Edition authored by World Resources Institute(WRI)/World Business Council for Sustainable De

86、velopment(WBCSD).The Scope 2 GHG Emission Inventory,which accounts for all GHG emissions from the generation of purchased energy(for example,electricity,steam)consumed by the Company was prepared in accordance with the GHG Protocol Scope 2 Guidance:An amendment to the GHG Protocol Corporate Standard

87、 authored by WRI and WBCSD.Scope 3 GHG Emission Inventory,which includes the indirect emissions occurring both upstream and downstream within the Companys value chain,was prepared in accordance with the GHG Protocol Corporate Value Chain(Scope 3),Accounting and Reporting Standard authored by WRI and

88、 WBCSD.Collectively,the GHG Protocol:A Corporate Accounting and Reporting Standard,Revised Edition,the GHG Protocol Scope 2 Guidance:An amendment to the GHG Protocol Corporate Standard and the GHG Protocol:Corporate Value Chain(Scope 3)Accounting and Reporting Standard are referred to as the“GHG Pro

89、tocol”in this document.ESTIMATION UNCERTAINTIESData used in the preparation of the Planet CP metrics related to GHG Emissions and Supplier Engagement The underlying Greenhouse Gas(“GHG”)emissions used to calculate the two Planet Corporate Philosophy(“CP)metrics have been prepared in accordance with

90、accepted GHG accounting principles as further described below.If not specifically noted,Statements and Notes,which are related to CP metrics,have been prepared based on the fiscal reporting year 2023,which runs from 1 April 2023 through 31 March 2024 at Takeda Pharmaceutical Company Limited and its

91、consolidated subsidiaries(referenced hereafter as“Takeda”or“the Company”).Where applicable,base year environmental data has also been reported based on the applicable fiscal year(1 April through 31 March).BASIS OF PRESENTATIONAs used in this document,GHG Inventory refers to the lists of emission sou

92、rces and associated GHG Note 1 Generalare subject to measurement uncertainties resulting from limitations inherent in the nature and methods for determining such data.The selection of different but acceptable measurement techniques can result in materially different measurements.The precision of dif

93、ferent measurement techniques may also vary.The preparation of these metrics requires making estimates and assumptions that affect amounts reported.The Company bases these estimates,including methodologies to calculate GHG emissions,on available information and various other assumptions that are bel

94、ieved to be reasonable.16EXPLANATION OF CORPORATE PHILOSOPHY METRICS ESG METRICS ASSURANCE REPORTCORPORATE PHILOSOPHY METRICS EXPLANATION OF ESG METRICS Leased AssetsThe Company includes leased assets that fall under the“right-of-use”definition(as defined by the International Accounting Standards Bo

95、ard in International Financial Reporting Standard 16)in scope 1 and 2 emissions reporting.Except for the BioLife subsidiary,which includes all leases regardless of duration or value,short-term leases(duration less than 12 months)and small value lease contracts(total value less than$5,000 USD/668,000

96、 JPY)are excluded from the inventory.ExclusionsExcluded from the inventory are residential properties,undeveloped land,improved land with no recognized GHG emissions sources(e.g.a parking area),and newly constructed or under construction facilities that are not yet under the Companys operational con

97、trol.Scope 3 InventoryThe Companys scope 3 emissions to calculate the supplier-related Planet CP metric includes emissions from the following GHG Protocol categories:Category 1:Purchased Goods and Services,Category 2:Capital Goods,and Category 4:Upstream Transportation and Distribution.GHG REPORTING

98、 PERIOD AND BASE YEARReporting PeriodThe reporting period for current year GHG emissions is fiscal year 2023.Base Year For the scope 1 and 2 GHG emissions,the Company selected fiscal year 2016(i.e.,1 April 2016 through 31 March 2017)as its base year in accordance with the GHG Protocol.Recalculation

99、and Restatement of Previous Year Emissions Data In accordance with the GHG Protocol,the Company established a process for recalculating GHG emissions for previous years and set a significance threshold of+/-5%for aggregated scope 1 and scope 2(location-based)emissions.The Company reviews prior year

100、emissions on an annual basis and has restated previous years emissions(including its base year)to account for structural changes in the company(for example,acquisitions and/or divestitures)and revisions in accounting methodologies or emissions factors.This recalculation of GHG emissions is performed

101、 in accordance with the GHG Protocol“same-year/all-year”approach.ORGANIZATIONAL BOUNDARIESThe Company has selected the operational control approach as the consolidation approach to define the organizational boundaries for its GHG Inventory.Accordingly,the Company includes GHG emissions from all owne

102、d sites and leased facilities over which Takeda has operational control to introduce and implement operating policies(except where specifically excluded as described in our operational boundaries below)and excludes those from minority-owned joint ventures over which the company does not have operati

103、onal control for scopes 1 and 2 reporting.OPERATIONAL BOUNDARIES Scopes 1-2 Inventory Takeda Owned AssetsThe Companys GHG Inventory includes scopes 1 and 2 emissions from Takeda-owned commercial and industrial assets including manufacturing sites,R&D facilities,plasma collection centers,office space

104、s,and warehouses.This includes associated scope 1 emissions from the on-site use of fossil fuels and refrigerants,and scope 2 emissions from purchased electricity,heat,steam,and cooling.GHG Note 2 Organizational and Operational Boundaries GHG Included in the Inventory Emissions data are provided in

105、metric tonnes(MT)for each GHG separately and reported as aggregated total emissions using thousand MT CO2e.The company assesses the emissions from all applicable Kyoto GHGs which are carbon dioxide(CO2),methane(CH4),nitrous oxide(N2O),and hydrofluorocarbons(HFCs).Other Kyoto GHGs,including perfluoro

106、carbons(PFCs),sulphur hexafluoride(SF6),and nitrogen trifluoride(NF3),are not considered as they are not applicable to the Companys operations.Takeda additionally assesses the emissions from all applicable Montreal GHGs that are applicable to Takedas operations.The Global Warming Potentials from the

107、 Intergovernmental Panel on Climate Change(IPCC)fifth assessment report(AR5),100-year time horizon were used to convert the gases into CO2e,if not otherwise specified.17EXPLANATION OF CORPORATE PHILOSOPHY METRICS ESG METRICS ASSURANCE REPORTCORPORATE PHILOSOPHY METRICS EXPLANATION OF ESG METRICSGHG

108、METRICS DEFINITION,EMISSION FACTORS,AND CALCULATION METHODS Metric Definitions:The tables below describe relevant definitions,the GHG emission factors used by the Company,the applicable reference sources cited,and calculation methods used for each emission source included within the operational boun

109、dary.MetricDescriptionTotal Scope 1 EmissionsSum of total GHG emissions from company-owned generators,heaters,boilers,vehicles,and refrigerantsTotal Scope 2 Emissions Market-BasedMarket-based purchased electricity plus emissions from all other purchased energy(for example,steam,district heat or cool

110、ing water)Total Scopes 1+2(market-based)Emissions Sum of Total Scope 1 Emissions plus Total Scope 2 Emissions(market-based)Total Scopes 1+2(market-based)Emissions for Base Year*Sum of Total Scope 1 Emissions plus Total Scope 2 Emissions(market-based)for the fiscal year 2016(1 April 2016 through 31 M

111、arch 2017)Reduction of Scopes 1+2 Emissions Since Base Year*Percent difference between Total Scopes 1+2 Emissions from the current year versus Total Scopes 1+2 Emissions from the base year18EXPLANATION OF CORPORATE PHILOSOPHY METRICS ESG METRICS ASSURANCE REPORTCORPORATE PHILOSOPHY METRICS EXPLANATI

112、ON OF ESG METRICSSCOPE 1 AND SCOPE 2 EMISSION FACTORS AND CALCULATION METHODSEMISSIONS SCOP ES OU R CE D E S C R IP T IO N A N D U ND E R LYIN G DATAE M ISS IO N FAC TO R SC ALC ULATIO N M E THO D AND ASSUM P TIO NS Scope 1Stationary combustion sources(for example,boilers,generators,space heaters)Se

113、rvice invoices consolidated in the Companys environmental metrics databaseEmissions from small offices with less than 100 full-time occupants are estimated using emission factors from the Commercial Building Energy Consumption Survey(CBECS)(EIA,2018)EPA,Emission Factors for Greenhouse Gas Inventorie

114、s,April 2022GHG Protocol,Emission Factors for Cross Sector Tools V2.0,March 2024Supplier Provided FactorsEmissions from generators,heaters,and boilers under the Companys operational control are calculated by multiplying fuel volumes consumed by the corresponding emission factors.For reporting agains

115、t our scope 1+2 emissions reduction target within this document,direct CO2,methane,and nitrous oxide emissions from the combustion of biologically sequestered carbon are included within the scope 1 boundaries.Mobile combustion sources(Vehicles,mobile generators)Service invoices consolidated in the C

116、ompanys environmental metrics databaseUS EPA,Emission Factors for Greenhouse Gas Inventories,April 2022Vehicle emissions are calculated by multiplying fuel volumes consumed by the corresponding emission factors.Fleet(Company-owned or operated vehicles that are fueled offsite)Fuel usage or mileage dr

117、iven reported by country fleet managersManufacturers provided vehicle emission factorsUSEPA,Comparison:Your Car vs.an Electric Vehicle,April 2024.International Energy Agency(IEA),Emissions Factors 2023,September 2023To calculate fleet Scope 1 emissions,manufacturers provided vehicle emission factors

118、 are multiplied by the miles driven or contract miles.When vehicle emissions factor data are not available for a specific vehicle,it may be estimated based on an average of similar vehicles.If vehicles are electric,a usage of 0.37 kWh/mile is assumed.The IEA factors are used for emissions and are ac

119、counted for under scope 2 emissions.RefrigerantsQuantity of refrigerants used to replace refrigerant losses as reported by sites and consolidated in the Companys environmental metrics databaseGWP from IPCC(see reference Greenhouse Gases Included in the Inventory section)Emissions from refrigerants a

120、re estimated based on the quantity of refrigerants used to replace refrigerant losses as reported by sites and consolidated in the Companys environmental metrics database.The quantity of each refrigerant is multiplied by the respective GWP100 AR5 value to calculate the COe.19EXPLANATION OF CORPORATE

121、 PHILOSOPHY METRICS ESG METRICS ASSURANCE REPORTCORPORATE PHILOSOPHY METRICS EXPLANATION OF ESG METRICSE MISSIONS S COP ES OU R CE D E S C R IP T IO N A N D U ND E R LYIN G DATAE M ISS IO N FAC TO R SC ALC ULATIO N M E THO D AND ASSUM PTIO NS Scope 2Purchased ElectricityUtility invoices consolidated

122、 in the Companys environmental metrics databaseEmissions from small offices with less than 100 full-time occupants are estimated using emission factors from the Commercial Building Energy Consumption Survey(CBECS)(EIA,2018)US EPA,Emissions&Generation Resource Integrated Database(eGRID),January 2024I

123、nternational Energy Agency(IEA),Emissions Factors 2023,September 2023Location-Based emissions are calculated by multiplying electricity usage at the location with geographical emission factors;US:EPA;all other countries:IEA.Market-based emissions are estimated for companies that use contractual inst

124、ruments,and the Company utilizes the data hierarchy outlined in the GHG Protocol.The instruments used include RECs,green electricity certificates and PPAs.The Company uses the market-based method for tracking progress towards its GHG emissions reduction goals.District Heating WaterUtility invoices c

125、onsolidated in the Companys environmental metrics databaseUS EPA,Emission Factors for Greenhouse Gas Inventories,April 2022This is calculated by multiplying the energy quantity purchased by a supplier specific emission factor,if available,or the EPA factors divided by 0.8 to account for transmission

126、 loss.Purchased SteamUtility invoices consolidated in the Companys environmental metrics databaseSupplier Provided FactorsUS EPA,Emission Factors for Greenhouse Gas Inventories,April 2022 This is calculated by multiplying the energy quantity purchased by a supplier specific emission factor,if availa

127、ble,or the EPA factors.District Cooling WaterUtility invoices consolidated in the Companys environmental metrics databaseUS EPA,Emissions&Generation Resource Integrated Database(eGRID),January 2024International Energy Agency(IEA),Emissions Factors 2023,September 2023Hartman,T.(2001).All-variable Spe

128、ed Centrifugal Chiller Plants.ASHRAE JournalThis is calculated by multiplying the energy quantity purchased by the IEA or EPA emission factor divided by the coefficient of performance,5.*The emissions calculation assumes a Coefficient of Perfor-mance(COP)factor of five for the chiller(including pump

129、s and fans)(Thomas Hartman,2001).Third-Party Operated On-Site Fuel CellsThird party reported energy consumedUS EPA,Emission Factors for Greenhouse Gas Inventories,April 2022Calculated using the vendor provided emissions and included in Total Scope 2 Emissions(market and location-based).20EXPLANATION

130、 OF CORPORATE PHILOSOPHY METRICS ESG METRICS ASSURANCE REPORTCORPORATE PHILOSOPHY METRICS EXPLANATION OF ESG METRICSSCOPE 3 EMISSION FACTORS AND CALCULATION METHODSCATEGORYD E S CR I P TI ON O F T H E T Y P E S AND S OU R CE S O F DATA U S E D TO CALC U L AT E T H E E M I SS I O N SE M ISS IO N FAC

131、TO RC ALC ULATIO N M E THO D AND ASSUM P TIO NSCategory 1:Purchased Goods and ServicesIncludes all purchases related to goods and services not otherwise included in the other upstream scope 3 emissions categories(i.e.,category 2 through category 8).Data sources include the Companys procurement datab

132、ases and Bank of America credit card purchasing reports.Filtration material composition and weights were obtained from supplier websites and publicly available data sources.United States Environmental Protection Agency.(2023).SupplyChainGHGEmissionFactors_v1.2_NAICS_CO2e_USD2021.csv(Version 1.2)Data

133、 set.U.S.EPA Office of Research and Development.Ecoinvent(2023).EcoInvent 3.9.1.Pr.(2023).SimaPro.Custom Life Cycle Assessments(LCAs)or carbon footprint analyses performed on Takedas(or similar)products and raw materials were used to derive emission factors,including through use of a third-partys Ec

134、o-design Tool.Custom life cycle assessments were conducted and emission factors were also developed by an external party for packaging and filtration materials.European Commission.(2016).Environmental Sustainability Assessment of Bioeconomy Products and Processes Progress Report 2.Association of the

135、 British Pharmaceutical Industry(ABPI)/Carbon Trust.(2023).Blister Pack Carbon Evaluation Tool(Version 1.2).ABPI.Settanni,E.S.,Srai,J.,Yatskovskaya,E.,&Harrington,T.(2017).Exploring Generalisations for Sustainability Assessment in Medicine Manufacturing Networks.EurOMA.Alviz,P.,&Alvarez,A.(2017).Com

136、parative life cycle assessment of the use of an ionic liquid(BmimBr)versus a volatile organic solvent in the production of acetylsalicylic acid.Journal of Cleaner Production,168,1614-1624.Zimek,Z.&Kaluska,I.(1998).Economical aspects of radiation sterilization with electron beam.Purchasing activity d

137、ata for goods and services were used to calculate emissions using both spend and activity-based methodologies.For goods related to Takedas BioLife centers and raw materials,emissions were calculated by multiplying the mass of purchased material by emission factors based on the IPCC 2013 GWP100 metho

138、d and sourced from either ecoinvent 3.9.1,publicly available emission factors/LCAs/carbon footprint studies,or custom LCAs/carbon footprint studies conducted by a third party.Emissions associated with professional services were estimated using emission factors developed for high-spend suppliers.Thes

139、e factors were generated using a market-based approach and based on publicly available supplier emissions and revenue data obtained from environmental sustainability reports and financial statements,subject to certain validation criteria.A spend-based(i.e.,EEIO)emission factor was applied to the spe

140、nd for the remaining professional services suppliers.Similarly,emissions associated with Events&Sponsorships,Facilities&Related Services,Information Technology,Market Research,and Travel services were estimated by an external party using market-based emission factors for high-spend suppliers using p

141、ublicly available supplier emissions and revenue data.A spend-based(i.e.,EEIO)emission factor was applied to the spend for remaining suppliers within each category.Custom emission factors were developed by a third-party for the following high-spend packaging types:molded glass and vials,folding cart

142、ons,labels,rubber stoppers,blisters,leaflets,plastic bottles,and plastic lids.Life cycle assessments were conducted using material and processing datasets from SimaPro based on Company bills of materials,which included packaging weights and materials,across several Company products.Emission factor a

143、verages for each packaging type were applied to material descriptions not matched to a specific packaging configuration.Energy requirements for sterilization of vial packaging,vials emission factors,and an uplift factor were determined using data from Zimek and Kaluska(1998).21EXPLANATION OF CORPORA

144、TE PHILOSOPHY METRICS ESG METRICS ASSURANCE REPORTCORPORATE PHILOSOPHY METRICS EXPLANATION OF ESG METRICSSCOPE 3 EMISSION FACTORS AND CALCULATION METHODSCATEGORYD E S CR I P TI ON O F T H E T Y P E S AND S OU R CE S O F DATA U S E D TO CALC U L AT E T H E E M I SS I O N SE M ISS IO N FAC TO RC ALC U

145、LATIO N M E THO D AND ASSUM P TIO NSCategory 1:Purchased Goods and ServicesEmission factors for high-spend suppliers of services(i.e.,Professional Services,Events&Sponsorships,Facilities&Related Services,Information Technology,Market Research,and Travel)were derived from publicly reported data(i.e.,

146、GHG emissions and revenue).Custom emission factors were also developed by a third party for the following high-spend filtration materials:viral filters,depth filters,membrane liquid filters,and filter aids.Material and processing datasets from SimaPro were used.Material composition and weights were

147、obtained from supplier websites and publicly available data sources.Research was conducted on energy requirements for sterilization of packaging(Zimek and Kaluska(1998),and an uplift factor was applied to the filters emission factors.If a material description did not match a specific product for whi

148、ch a custom emission factor had been developed,an average emission factor was applied based on the materials product type.A spend-based method was used to estimate emissions for the remaining purchasing activity data within the Company FY23 spend.An environmentally extended input-output model was us

149、ed to estimate emissions here,whereby each spend value was multiplied by a spend-based factor related to a given purchase category.Category 2:Capital GoodsIncludes all purchases related to capital goods.The Companys procurement databases were used as the data source.United States Environmental Prote

150、ction Agency.(2023).SupplyChainGHGEmissionFactors_v1.2_NAICS_CO2e_USD2021.csv(Version 1.2)Data set.U.S.EPA Office of Research and Development.https:/catalog.data.gov/dataset/supply-chain-greenhouse-gas-emission-factors-v1-2-by-naics-6Spend-based(i.e.,EEIO)emission factors were applied to purchasing

151、activity data related to capital goods.Category 4:Upstream Transportation and DistributionThe Companys procurement databases were used as the data source.These included purchases related to third-party transportation and logistics services for inbound and outbound transportation,as well as third-par

152、ty transportation services between Company facilities.United States Environmental Protection Agency.(2023).SupplyChainGHGEmissionFactors_v1.2_NAICS_CO2e_USD2021.csv(Version 1.2)Data set.U.S.EPA Office of Research and Development.https:/catalog.data.gov/dataset/supply-chain-greenhouse-gas-emission-fa

153、ctors-v1-2-by-naics-6Spend-based emission factors were applied to purchasing activity data related to distribution and logistics.22EXPLANATION OF CORPORATE PHILOSOPHY METRICS ESG METRICS ASSURANCE REPORTCORPORATE PHILOSOPHY METRICS EXPLANATION OF ESG METRICSTo measure progress towards the target,the

154、 sum of CO2e emissions from scope 3 categories 1,2,and 4 from suppliers with science-based climate targets is divided by the total CO2e emissions from scope 3 categories 1,2,and 4,and multiplied by 100 to obtain the percentage.Takeda attempts to verify all our suppliers with the list available on th

155、e SBTi website,but prioritizes the highest emitting suppliers representing 95%of estimated scope 3 categories 1,2 and 4 emissions to calculate the metric.The Company has a supplier engagement target to have suppliers constituting 67%of its scope 3 emissions in categories 1,2,and 4 committed to setti

156、ng science-based climate targets(i.e.,aligned with SBTi standards)by 2024.Sources used to verify that suppliers have committed to setting science-based climate targets include the Science-Based Target Initiative(SBTi)website,EcoVadis confirmed science-based targets,and written assertion to the Compa

157、ny from representatives of companies whose emissions are included in the Companys scope 3 categories 1,2 and 4 emissions.GHG Note 3-Suppliers Commitments to Set Science-Based Climate Targets23EXPLANATION OF CORPORATE PHILOSOPHY METRICS ESG METRICS ASSURANCE REPORTCORPORATE PHILOSOPHY METRICS EXPLANA

158、TION OF ESG METRICSMetricResultsPercent Waste Diverted from Landfill 78%METRIC AND RESULTS:Diverting Waste from Landfillare excluded as well as low value lease contracts(total value less than$5,000 USD/668,000 JPY).When a leased asset is divested or acquired during a reporting period,the Company acc

159、ounts for its waste proportionally to the duration it was under its operational control during the reporting period.ExclusionsSpecifically excluded from this metric is waste generated as part of construction,demolition,and environmental remediation activities.Waste generated in offices with occupanc

160、ies less than 400 full time employees,residential properties,undeveloped land independent of area(e.g.,open space,botanical garden),subleased sites and parking garages may also excluded.Estimation UncertaintiesData used in the preparation of the Planet CP metric related to Waste Diversion from Landf

161、ill are subject to measurement uncertainties resulting from limitations inherent in the nature and methods for determining such data.The selection of different but acceptable measurement techniques can result in materially different measurements.The precision of different measurement techniques may

162、also vary.The preparation of the metric requires management to make estimates and assumptions that affect amounts reported.We base these estimates,including methodologies to calculate waste metrics,on available information and various other assumptions that it believes to be reasonable.Waste Reporti

163、ng Period The reporting period for this metric consists of the fiscal year 2023.BASIS OF PRESENTATION The Planet CP metric related to Waste Diverted from Landfill includes the Companys operations as previously described in GHG Note 1.This metric has been prepared in accordance with accepted principl

164、es and methods as further described below.Takeda Owned Assets The Company includes waste generated from all owned sites over which Takeda has operational control to introduce and implement operating policies during the reporting year.Leased Assets The Company includes leased assets that fall under t

165、he“right-of-use”definition(as defined by the International Accounting Standards Board in International Financial Reporting Standard 16)in water reporting.Short-term leases(duration less than 12 months)Waste Note 1 24EXPLANATION OF CORPORATE PHILOSOPHY METRICS ESG METRICS ASSURANCE REPORTCORPORATE PH

166、ILOSOPHY METRICS EXPLANATION OF ESG METRICSWASTE METRIC SOURCES AND CALCULATION METHODS Metric Description of the types and sources of data used to calculate water volumes Calculation Method and Assumptions Total Waste GeneratedThe information provided by waste vendor(for example,invoice or waste ma

167、nifest)is generally used for data input to the Companys environmental metrics databaseCalculated as the total sum of waste quantities reported.Total waste generated is defined as the sum of waste reported at sites where the Company had operational control during the reporting period.Waste generated

168、as part of construction,demolition,and environmental remediation activities is excluded.Percent Waste Diverted from Landfills The information provided by the waste vendor on the waste invoice is generally used for data input to the Companys environmental metrics databaseCalculated by subtracting the

169、 calculated%waste sent to landfill from 100%.Landfills are defined as engineered disposal sites where wastes are deposited at or below the ground level.Diverted from landfills include all diversion methods including,re-use,recycling,incineration with or without energy recovery.Percent Waste Sent to

170、Landfill The information provided by the waste vendor on the waste invoice is generally used for data input to the Companys metrics databaseCalculated by dividing the total waste reported as sent to landfill by the total waste generated and multiplying by 100.Waste generated as part of construction,

171、demolition,and environmental remediation activities is excluded.See“Percent Waste Diverted from Landfills”for definition of Landfills.25EXPLANATION OF CORPORATE PHILOSOPHY METRICS ESG METRICS ASSURANCE REPORTCORPORATE PHILOSOPHY METRICS EXPLANATION OF ESG METRICSMetricResultsPercent Reduction of Wat

172、er Withdrawal from Base Year4.9%METRIC AND RESULTS:Conserving FreshwaterLeased Assets The Company also includes all leased sites that fall under the“right-of-use”definition(as defined by the International Accounting Standards Board in International Financial Reporting Standard 16)in water reporting.

173、Short-term leases(duration less than 12 months)are excluded as well as low value lease contracts(total value less than$5,000 USD/668,000 JPY).When a leased asset is divested or acquired during a reporting period,the Company accounts for its water proportionally to the duration it was under its opera

174、tional control during the reporting period.Estimation Uncertainties Data used in the preparation of the Planet CP metric related to Reduction of Water Withdrawal are subject to measurement uncertainties resulting from limitations inherent in the nature and methods for determining such data.The selec

175、tion of different but acceptable measurement techniques can result in materially different measurements.The precision of different measurement techniques may also vary.The preparation of the metric requires management to make estimates and assumptions that affect amounts reported.We base these estim

176、ates,including methodologies to calculate water metrics,on available information and various other assumptions that it believes to be reasonable.Reporting PeriodThe reporting period for these metrics consists of the fiscal year 2023.BASIS OF PRESENTATION The Planet CP metric related to the Reduction

177、 of Water Withdrawal includes the Companys operations as previously described in GHG Note 1.This metric has been prepared in accordance with accepted principles and methods as further described below.Takeda Owned Assets The Company includes water withdrawals at all owned sites over which Takeda has

178、operational control to introduce and implement operating policies during the reporting year.Specifically excluded from these metrics can be offices with less than 400 full time equivalent occupants,residential properties,undeveloped land independent of area(for example,botanical garden),subleased si

179、tes,and parking lots and garages.Water Note 1 Base Year The Company has selected fiscal year 2019(i.e.,1 April 2019 through 31 March 2020)as its base year for the Planet CP metric related to Water.Recalculation and Restatement of Previous Year Water DataThe Company has established a policy to recalc

180、ulate water metric for previous years if a significance threshold of+/-5%is reached for aggregated water withdrawal Metric.26EXPLANATION OF CORPORATE PHILOSOPHY METRICS ESG METRICS ASSURANCE REPORTCORPORATE PHILOSOPHY METRICS EXPLANATION OF ESG METRICSWATER WITHDRAWAL METRIC SOURCES AND CALCULATION

181、METHODSMetric Description of the types and sources of data used to calculate water volumes Calculation Method and Assumptions Total Freshwater Withdrawal in Current YearWater volume data from site metering and water invoices are reported to the Companys environmental metrics databaseCalculated as th

182、e sum of all reported freshwater withdrawal during the reporting period.Freshwater is defined as having less than or equal to 10,000 mg/L of total dissolved solids.If not specified otherwise,the Company considers all water obtained from surface waters,groundwater,or third parties to be freshwater.Re

183、cycled water,recycled wastewater,and other non-freshwater are excluded.Total Freshwater Withdrawal in Base Year(FY2019)Water volume data from site metering and water invoices are reported to the Companys environmental metrics databaseCalculated as the sum of all reported freshwater withdrawal during

184、 FY2019.Freshwater is defined in“Total Freshwater withdrawal in Current Year”and the same exclusions apply.Percent Water Withdrawal ReductionThe percent reduction of Total Freshwater withdrawal in the current year(FY2023)compared to the base year(FY2019)Calculated by the difference of“Current Year T

185、otal Freshwater Withdrawal”to“FY2019 Total Freshwater Withdrawal”divided by“FY2019 Total Freshwater Withdrawal”and multiplying by 100.27EXPLANATION OF CORPORATE PHILOSOPHY METRICS ESG METRICS ASSURANCE REPORTCORPORATE PHILOSOPHY METRICS EXPLANATION OF ESG METRICSMetricResultsPercent of the Companys

186、secondary and tertiary packaging paper/paperboard that is recycled content or sustainable forest certified53%METRIC AND RESULTS:Making Paper and Paperboard Packaging from Sustainable Forest Certified or Recycled ContentSecondary and Tertiary Packaging Material are subject to measurement uncertaintie

187、s resulting from limitations inherent in the nature and methods for determining such data.The selection of different but acceptable measurement techniques can result in materially different measurements.The precision of different measurement techniques may also vary.The preparation of the metric req

188、uires management to make estimates and assumptions that affect amounts reported.Reporting Period The reporting period for this metric is the fiscal year 2022.The data collection process for fiscal year 2023 will be concluded in fall of 2024 and the metric will be reported in the following year.BASIS

189、 OF PRESENTATION The The Planet CP metric related to Secondary and Tertiary Packaging Material includes the Companys operations as previously described in GHG Note 1.In scope for these metrics are at least 90%of paper and paper board material(by spend)directly purchased by the Company for secondary

190、and tertiary packaging uses at owned or leased sites where the Company has operational control to pack products intended for sale.Excluded is any packaging material purchased and used by Companys vendors where the Company does not have operational control.This metric has been prepared in accordance

191、with accepted principles and methods as further described below.Estimation Uncertainties Data used in the preparation of the Planet CP metric related to Secondary and Tertiary Packaging Material Note 128EXPLANATION OF CORPORATE PHILOSOPHY METRICS ESG METRICS ASSURANCE REPORTCORPORATE PHILOSOPHY METR

192、ICS EXPLANATION OF ESG METRICSSECONDARY AND TERTIARY PACKAGING MATERIAL METRICS SOURCES AND CALCULATION METHODSMetric Description of the types and sources of data used to calculate water volumes Calculation Method and Assumptions Total weight of paper or paperboard procured for secondary and tertiar

193、y packaging that is recycled contentSupplier-provided data from annual questionnaire indicating the weight of paper and paperboard that is recycled contentCalculated as the sum of total paper and paperboard self-reported by the suppliers to be recycled content.Paperboard is defined as thick paper-ba

194、sed material that is produced from fibrous raw material.Secondary Packaging is defined as the overlaying packaging material that lies outside the primary packaging.Tertiary Packaging is defined as the overpacking material that lies outside the secondary packaging,for example,large cardboard delivery

195、 boxes(shippers).Recycled content paper and paperboard is defined as paperboard that includes paper and/or paperboard content that has been recovered and reprocessed into new paper products.Total weight of paper or paperboard procured for secondary and tertiary packaging that is certified forest sus

196、tainableSupplier-provided data from annual questionnaire indicating the weight of paper and paperboard that is forest sustainable certifiedCalculated as the sum of paper and paperboard self-reported by the suppliers to be certified forest sustainable.Certifications accepted are FSC,SFI or PEFC.Total

197、 weight of paper or paperboard procured for secondary and tertiary packagingThe Company procurement database tracks and consolidates the total weight of packaging purchased.This is verified by supplier-provided data.Calculated as the sum of total paper and paperboard procured for secondary or tertia

198、ry packagingPercent of the Companys secondary and tertiary packaging paper/paperboard that is recycled content or sustainable forest certifiedCalculated by dividing the sum of total of secondary or tertiary paper&paperboard reported as recycled content or sustainable forest certified with the total

199、secondary and tertiary paper&paperboard purchased and multiplying by 100.29EXPLANATION OF CORPORATE PHILOSOPHY METRICS ESG METRICS ASSURANCE REPORTCORPORATE PHILOSOPHY METRICS EXPLANATION OF ESG METRICS1 This is set during internal budgeting planning process at the start of the year.BusinessMetricRa

200、tionaleResultsGrowth and Launch Products Incremental Core Revenue Growth Products Revenue:Emphasis on subset of revenue that is the key driver of future revenue growth Launch Product Revenue:Key indicator of driving pipeline growth and commercial revenue success79.5%METRIC AND RESULTS:DEFINITION:Thi

201、s measures year-over-year Core Revenue growth in Growth and Launch Products vs Target1.This metric was approved as a Key Performance Indicator by the Compensation Committee and then BOD in June 2023 for use in our Short-Term Incentive(STI)Plan for FY23.BACKGROUND:Both are indicators of strong busine

202、ss success and potential revenue growth:Growth and Launch Products are the key driver of future revenue growth,key indicator of driving pipeline growth and commercial revenue success.CALCULATION METHOD:Growth and Launch Products Actual Incremental Core Revenue/Growth and Launch Products Target Incre

203、mental Core RevenueSCOPE:Growth and Launch Products in the fiscal year ended March 31,2024 are:ENTYVIO,ALOFISEL,TAKHZYRO,LIVTENCITY,Immunoglobulin,Albumin,ALUNBRIG,EXKIVITY,QDENGA,FRUZAQLA,ADZYNMA,EOHILIA30EXPLANATION OF CORPORATE PHILOSOPHY METRICS ESG METRICS ASSURANCE REPORTCORPORATE PHILOSOPHY M

204、ETRICS EXPLANATION OF ESG METRICSESG Metrics 31In this section,metrics marked with are assured independently by KPMG AZSA Sustainability Co.,Ltd.31TAKEDA 2024 ESG DATABOOKEXPLANATION OF CORPORATE PHILOSOPHY METRICS ESG METRICS ASSURANCE REPORTCORPORATE PHILOSOPHY METRICS EXPLANATION OF ESG METRICSCA

205、TEGORY/METRICAccess to MedicinesFY20 DataFY21 DataFY22 DataFY23 DataNumber of patients in LMICs and countries with evolving healthcare systems who have received access to Takedas medicines and vaccines through Takeda initiated and Takeda-sponsored clinical trials170,00026,4307,369997 Access to Medic

206、ines Programs in Low-and Middle-Income Countries and Evolving Healthcare Systems(Charitable Assistance Programs)3143160189161 Number of countries our Access to Medicines programs operate in Low-and Middle-Income Countries and Evolving Healthcare Systems436394447 1 Patients enrolled in clinical trial

207、s,clinical research and clinical collaborative research studies in Low-Income Countries(LICs),Lower Middle-Income Countries(LMICs)and Upper Middle-Income Countries(UMICs),per World Bank definitions,during the fiscal year2 Increase in FY20 figure related to participation in clinical studies for Taked

208、as TAK-0033 Charitable Access Programs are structured free of charge programs with an NGO partner in Low Income Countries(LICs),Lower Middle-Income Countries(LMICs)and Upper-Middle Income Countries(UMICs)and Venezuela,per World Bank definitions.4 The number of countries with active patients in an af

209、fordability-based Patient Assistance Program or in a Charitable Access Program during the fiscal year.Country numbers will fluctuate year over year as patient needs evolve(i.e.,levels of reimbursement,new product availability).Access to Medicines32EXPLANATION OF CORPORATE PHILOSOPHY METRICS ESG METR

210、ICS ASSURANCE REPORTCORPORATE PHILOSOPHY METRICS EXPLANATION OF ESG METRICSCATEGORY/METRICTalent Management1FY22 DataFY23 DataAbsolute%of Total Applicable Sub-PopulationAbsolute%of Total Applicable Sub-PopulationTotal Number of employees-Female51.8%26,604 52%Total Number of employees-Male48.0%24,151

211、 48%Total Number of employees-Other0.2%66 0.1%Total number of new hires(absolute|%of total workforce category)212,91726%11,120 22%Total number of new hires-Female 8,36833%7,435 28%Total number of new hires-Male 4,45319%3,643 15%Total number of new hires-Undeclared42 Total number of new hires-Age Gro

212、up 1:5099910%861 8%Total number of new hires-Japan 57410%274 5%Total number of new hires-U.S.9,01442%8,119 36%Total number of new hires-EUCAN1,79412%1,216 8%Total number of new hires-GEM 1,53520%1,511 19%Percentage of open positions filled by internal candidates326%29%Average number of years employe

213、es have been with the organization6.76.94 Average number of years employees have been with the organization-Female5.75.9 Average number of years employees have been with the organization-Male7.98.1 1 Data scope limited to regular and dispatched employees as of March 31 of each year and excludes fixe

214、d-term employees as well as those on unpaid leave.2 Calculated as a%of the demographic that is a new hire(0-1 year tenure)divided by the total of that demographic.3 An open position is defined when a requisition is posted for a new role or filling an open role that does not currently exist.Talent Ma

215、nagement33EXPLANATION OF CORPORATE PHILOSOPHY METRICS ESG METRICS ASSURANCE REPORTCORPORATE PHILOSOPHY METRICS EXPLANATION OF ESG METRICSCATEGORY/METRICTalent ManagementFY22 DataFY23 DataTotal global turnover rate122%21%Total global turnover rate-Women 27%27%Total global turnover rate-Men 15%15%Tota

216、l global turnover rate-Age Group 1:5017%14%Total global turnover rate-Japan5%5%Total global turnover rate-U.S.34%33%Total global turnover rate-EUCAN11%10%Total global turnover rate-GEM20%20%Total global involuntary turnover rate7%7%Total global voluntary turnover rate14%14%Total global turnover rate

217、-Employee Category 1(e.g.Manager-level)10%10%Total global turnover rate-Category 2(e.g.below Manager-level)25%26%See page 77 for details of the metrics.1 Total global turnover includes both voluntary and involuntary turnover across the period,and is noted to be different to the sum of these categori

218、es due to rounding.Talent Management34EXPLANATION OF CORPORATE PHILOSOPHY METRICS ESG METRICS ASSURANCE REPORTCORPORATE PHILOSOPHY METRICS EXPLANATION OF ESG METRICSCATEGORY/METRICHealth&Safety Incident Rates(per 200,000 hours worked)FY20 DataFY21 DataFY22 DataFY23 DataTotal Recordable Incident Rate

219、0.911.261.281.55 Incidents with Days Lost Rate0.250.240.180.38 Number of fatalities0000 Fatality rate0000 See our Statements and Notes on Consolidated FY2023 Environmental,Health and Safety Metrics for more information on our boundaries,basis of presentation and estimations.Health&Safety35EXPLANATIO

220、N OF CORPORATE PHILOSOPHY METRICS ESG METRICS ASSURANCE REPORTCORPORATE PHILOSOPHY METRICS EXPLANATION OF ESG METRICS1 Manager is defined as an employee with one or more direct reports who are Takeda employees.Managers of only contractor direct reports are not included.2 Individual Contributor is de

221、fined as an employee who does not have direct reports who are employees or who manages contractors only.CATEGORY/METRICFY22 DataFY23 Data%Workforce-Manager1%Workforce-Manager-Female42%43%Workforce-Manager-Male58%57%Workforce-Manager-Age Group 1:5027%29%Workforce-Manager-Japan11%11%Workforce-Manager-

222、US39%40%Workforce-Manager-EUCAN31%31%Workforce-Manager-GEM19%18%Workforce-Individual Contributor2%Workforce-Individual Contributor-Female54%54%Workforce-Individual Contributor-Male46%46%Workforce-Individual Contributor-Age Group 1:5018%19%Workforce-Individual Contributor-Japan11%11%Workforce-Individ

223、ual Contributor-US44%46%Workforce-Individual Contributor-EUCAN29%29%Workforce-Individual Contributor-GEM15%15%Diversity,Equity&Inclusion36EXPLANATION OF CORPORATE PHILOSOPHY METRICS ESG METRICS ASSURANCE REPORTCORPORATE PHILOSOPHY METRICS EXPLANATION OF ESG METRICSSee page 75 for details of the metr

224、ics.1 Data scope limited to regular and dispatched employees as of March 31 of each year and excludes fixed-term employees as well as those on unpaid leave.Diversity,Equity&InclusionCATEGORY/METRICFY22 DataFY23 Data%Total Employees1%Total Employees-Age Group 1:5020%10,45521%Total Employees-Japan11%T

225、otal Employees-US45%Total Employees-EUCAN29%Total Employees-GEM15%37EXPLANATION OF CORPORATE PHILOSOPHY METRICS ESG METRICS ASSURANCE REPORTCORPORATE PHILOSOPHY METRICS EXPLANATION OF ESG METRICS1 Percentage metrics are calculated as the number of female employees divided by the total number of empl

226、oyees within each demographic.Junior management positions are defined as managers at three or more levels below the CEO.2 Percentage metrics are calculated as the number of female employees divided by the total number of employees within each demographic.Top management positions are defined as manag

227、ers at two or less levels below the CEO,inclusive of the Executive team.3 Percentage metrics are calculated as the number of female employees divided by the total number of employees within each demographic.Revenue-generating functions are defined as those related to sales.4 Percentage metrics are c

228、alculated as the number of female employees divided by the total number of employees within each demographic.STEM-related positions are defined as those within the following job families:Pharmaceutical Sciences,Engineering,Clinical Development,Supply Chain,Regulatory Affairs,Data Sciences,Manufactur

229、ing Sciences,Insights&Analytics,Drug Safety,Automation&AI,Therapeutic Area Unit,Information Technology,Research Science,Quality,Manufacturing/Production,Medical Affairs.5 Scope:Data scope limited to regular and dispatched employees as of March 31,2024 and excludes fixed-term employees as well as tho

230、se on unpaid leave,other than the%of female employees in top management positions metric which includes fixed-term employees.CATEGORY/METRICFY22 DataFY23 Data5%women in all junior management positions142%43%women in all in all top management positions243%41%women in all management positions in reven

231、ue-generating functions332%32%women in STEM-related positions444%44%Number of female employees on the Takeda Executive Team68 Women in the Workforce38EXPLANATION OF CORPORATE PHILOSOPHY METRICS ESG METRICS ASSURANCE REPORTCORPORATE PHILOSOPHY METRICS EXPLANATION OF ESG METRICSCATEGORY/METRICWaste(Me

232、tric Tons)1FY20 DataFY21 DataFY22 DataFY23 DataTotal Waste Generated87,00087,30085,51098,520 Total Regulated Waste Generated43,20041,30037,51047,060 Total Non-Regulated Waste Generate43,80046,00048,00051,460 Percent Waste Recycled34%37%36%37%Percent Waste Sent to Landfill21%21%22%22%Significant Spil

233、ls and ReleasesNumber of Written Notices of Violation(NOVs)or Citations Received26287 Total Number and Volume of Significant Spills20000 See our Statements and Notes on Consolidated FY2023 Environmental,Health and Safety Metrics for more information on our boundaries,basis of presentation and estima

234、tions.1 We discontinued disclosing Total amount of product accepted for take-back,reuse,or disposal because it was not a Takeda-specific metric.Still,Takeda remains actively engaged in supporting and participating in pharmaceutical take-back programs in collaboration with relevant industry groups.Th

235、ese programs have resulted in the collection of unwanted medicine and sharps-containing drug products for disposal2 See page 71 for a description of the metrics.Minimizing Environmental Impact39EXPLANATION OF CORPORATE PHILOSOPHY METRICS ESG METRICS ASSURANCE REPORTCORPORATE PHILOSOPHY METRICS EXPLA

236、NATION OF ESG METRICSCATEGORY/METRICTotal GHG Emissions(Thousand MTCO2e)FY20 DataFY21 DataFY22 DataFY23 DataTotal GHG Emissions14,9095,2105,6124,2652 Scope 1&2 Emissions(Thousand MTCO2e)Total Scope 1 Emissions293316277279 CO2289302N/A266.5 CH400N/A0.0 N2O00N/A0.0 Refrigerants(HFCs,CFCs,HCFCs)1514N/A

237、12.5 Scope 2 Emissions-market-based methodology21717816933 Scope 2 Emissions-location-based methodology271283291282 Total Scopes 1+2(market-based)Emissions510494446312 Biogenic CO2 Emissions(Not included in Total Scope 1 Emissions)N/AN/A122 Energy(Terajoules)Fuel Consumption(scope 1)4,9605,1004,7004

238、,742 Purchased Electricity(Non-Renewable)(scope 2)2,1001,7801,600438 Purchased Electricity(Renewable)(scope 2)8361,3001,4902,573 Onsite Generated Renewable Electricity(scope 2)451716 Percent Electricity Sourced as Renewable(scope 2)30%42%48%85%Supplied Heating and Cooling(scope 2)100102145160 Total

239、Energy Consumption(scopes 1 and 2)8,0008,2807,9527,929 See our Statements and Notes on Consolidated FY2023 Environmental,Health and Safety Metrics for more information on our boundaries,basis of presentation and estimations.1 Total GHG emissions calculated using scope 1 emissions total,scope 2 marke

240、t-based emissions total and scope 3 emissions(to the extent presented)total.2 The decrease in our total emissions for FY23 is driven primarily by updates made to our scope 3 inventory.As FY22 will be the baseline year for our future scope 3 net-zero and near-term science-based targets(SBTs),which ar

241、e undergoing validation,FY22 data will be restated to be consistent with these methodology updates in future reporting years.Decarbonizing40EXPLANATION OF CORPORATE PHILOSOPHY METRICS ESG METRICS ASSURANCE REPORTCORPORATE PHILOSOPHY METRICS EXPLANATION OF ESG METRICSCATEGORY/METRICFY20 DataFY21 Data

242、FY22 DataFY23 Data1Scope 3 Emissions(Thousand MTCO2e)Scope 3,all applicable categories4,3804,7165,1663,953 Category 13,7104,0704,0602,689 Category 25035217241 Category 383127147147 Category 4458341387353 Category 513161517 Category 652193117 Category 743778567 Category 1061411 Category 121114161264

243、Category 15N/AN/AN/A57 Supplier Engagement(Thousand MTCO2e)Scope 3 Emissions from Categories 1,2 and 4N/AN/A4,6643,283 Scope 3 Emissions from Suppliers Committed to Setting Science-Based Climate Targets Categories 1,2 and 4N/AN/A2,122 1,854 See our Statements and Notes on Consolidated FY2023 Environ

244、mental,Health and Safety Metrics for more information on our boundaries,basis of presentation and estimations.1 The decrease in scope 3 emissions in FY23 is the result of methodological changes made to our scope 3 inventory.As FY22 will be the baseline year for our future scope 3 net-zero and near-t

245、erm science-based targets(SBTs),which are undergoing validation,FY22 data will be restated to be consistent with these methodology updates in future reporting years.Decarbonizing41EXPLANATION OF CORPORATE PHILOSOPHY METRICS ESG METRICS ASSURANCE REPORTCORPORATE PHILOSOPHY METRICS EXPLANATION OF ESG

246、METRICSCATEGORY/METRICFY21 DataFY22 DataFY23 DataVoluntary Carbon Offset and Energy Attribute Certificate Purchases Quantity of Purchased Verified Emissions Reductions(VERs)-Thousand MTCO2e46575,0335,522 Quantity of Purchased Energy Attribute Certificates(EACs)Megawatt hours606,944522,693453,598 Per

247、cent Electricity as Renewable Including Energy Attribute Certificates(EACs)100%100%100%Percentage of Reported FY2022 GHG emissions mitigated by VERs and EACs purchased in FY2023100%1100%2100%See our Statements and Notes on Consolidated FY2023 Environmental,Health and Safety Metrics for more informat

248、ion on our boundaries,basis of presentation and estimations.1 Percentage of Reported FY2020 GHG emissions mitigated by VERs and EACs purchased in FY2021.2 Percentage of Reported FY2021 GHG emissions mitigated by VERs and EACs purchased in FY2022.Decarbonizing42EXPLANATION OF CORPORATE PHILOSOPHY MET

249、RICS ESG METRICS ASSURANCE REPORTCORPORATE PHILOSOPHY METRICS EXPLANATION OF ESG METRICSCATEGORY/METRICWater(Thousand Cubic Meters)FY20 DataFY21 DataFY22 DataFY23 DataWater Withdrawal10,77011,30010,43010,761 Water withdrawal in areas with“high”or“extremely high”water risk1,1801,0901,7071,720 Water w

250、ithdrawal in areas with“high”or“extremely high”water risk as%of total water withdrawal11%10%16%16%Water Consumed12,2802,7102,2402,387 Water consumed in areas with“high”or“extremely high”water risk174165264259 Water consumed in areas with“high”or“extremely high”water risk as%of total water consumptio

251、n8%6%12%11%of Manufacturing sites located in areas considered to have“high”or“extremely high”water risk20%20%34%31%Wastewater Discharged8,4908,5808,1908,374 BiodiversityNumber of sites in or adjacent to protected areas and/or key biodiversity areasN/A292929 See our Statements and Notes on Consolidat

252、ed FY2023 Environmental,Health and Safety Metrics for more information on our boundaries,basis of presentation and estimations.1 Water consumed represents the difference between water withdrawals and wastewater discharges.Conserving Natural Resources43EXPLANATION OF CORPORATE PHILOSOPHY METRICS ESG

253、METRICS ASSURANCE REPORTCORPORATE PHILOSOPHY METRICS EXPLANATION OF ESG METRICSCATEGORY/METRICEnvironmental Management Systems FY20 DataFY21 DataFY22 DataFY23 DataNumber of EHS audits performed120242624%of manufacturing sites certified to ISO 14001 73%73%77%86%of manufacturing sites certified to ISO

254、 50001 3%3%6%7%of manufacturing sites certified to ISO 45001 53%50%67%76%Environmental Management Systems1 EHS audits performed includes internal and external third-party audits managed by the corporate EHS function.44EXPLANATION OF CORPORATE PHILOSOPHY METRICS ESG METRICS ASSURANCE REPORTCORPORATE

255、PHILOSOPHY METRICS EXPLANATION OF ESG METRICSCATEGORY/METRICEthics&ComplianceFY21 DataFY22 DataFY23 DataTotal percentage of employees trained on Takedas anti-corruption policies and procedures1,2,3,4100%98%99.5%Total percentage of employees trained on Takedas anti-corruption policies and procedures-

256、Japan1,2,3,4100%99%99.9%Total percentage of employees trained on Takedas anti-corruption policies and procedures-U.S.1,2,3,4100%100%99.2%Total percentage of employees trained on Takedas anti-corruption policies and procedures-EUCAN1,2,3,4100%99%99.5%Total percentage of employees trained on Takedas a

257、nti-corruption policies and procedures-GEM1,2,3,4100%99%99.7%Total percentage of employees trained on Takedas Code of Conduct1,2,3,497%98%97.9%Total percentage of employees trained on Takedas Code of Conduct Japan1,2,3,498%98%99.7%Total percentage of employees trained on Takedas Code of Conduct-U.S.

258、1,2,3,496%100%95.3%Total percentage of employees trained on Takedas Code of Conduct EUCAN1,2,3,497%98%99.0%Total percentage of employees trained on Takedas Code of Conduct GEM1,2,3,498%99%99.1%Total number of incidents of corruption confirmed during the year,but related to previous years110 Total nu

259、mber of incidents of corruption confirmed during the year,related to year101 Total number of discrimination and harassment incidents during the year281933 Total amount of monetary losses as a result of legal proceedings associated with labour law violations and employment discrimination(JPY Million)

260、235.53,985.7259.6Total amount of monetary losses as a result of legal proceedings associated with clinical trials in developing countries000Total amount of monetary losses as a result of legal proceedings associated with false marketing claims000Total amount of monetary losses as a result of legal p

261、roceedings associated with corruption and bribery000Total amount of monetary lossess as a result of legal proceedings associated with fraud,insider trading,anti-trust,anti-competition,market manipulation,malpractice or violations of other related regulations(JPY Million)203.3015,508.81 All Takeda em

262、ployees globally are included in the calculation of total percentage of employees trained.Breakdowns by region are reflective of employees within Business Units of each respective region,and excludes those employees who sit in global business units or functions2 GLOBAL-GEC-Preventing Bribery and Cor

263、ruption base course and GLOBAL-GEC-Code of Conduct refresher course were used to determine total percentage of employees trained.Training on our Code of Conduct and our Anti-Corruption Policies and Procedures is designed to enhance employees understanding of our values and promote compliance.3 100%m

264、eans that all active employees have been assigned the course and are not overdue as of March 31st,2024.Employees who are taking parental leave,long-term sick leave,or any other forms of leave as of March 31st are not included.4 For the FY22 Data and years prior,we have rounded from the first decimal

265、.For FY23 Data,in order to provide further transparency,we have rounded from the second decimal and display up to the first decimal place.Values-Based Governance45EXPLANATION OF CORPORATE PHILOSOPHY METRICS ESG METRICS ASSURANCE REPORTCORPORATE PHILOSOPHY METRICS EXPLANATION OF ESG METRICSCATEGORY/M

266、ETRICEthics&ComplianceFY21 DataFY22 DataFY23 DataEconomic DisclosuresVitality Index-Percentage of gross revenue from products launched in the last five years14.2%5.8%1.7%Quality Management Number of Class I recalls2000 Number of Class II recalls2000 Supply ChainNumber of Pharmaceutical Supply Chain

267、Initiative(PSCI)sustainability on-site audits conducted562 Number of EcoVadis suppliers with sustainability desktop audits conducted3N/A317581 Number of audited suppliers where at least one area of their corrective action plan has been completed during the financial yearN/A6736 Global CSR Amount com

268、mitted in long-term philanthropic partnerships through Global CSR Program since launching in 2016(JPY Billion)416.219.724.2 1 Takedas vitality index,defined as the revenue contribution from products commercialized in the last five years,is 1.7%for our FY ending March 2024(vs 5.8%for the prior year).

269、This drop was due to Takhzyro launched more than 5 years ago.This includes key contributions from our oncology,rare disease and vaccine portfolios,such as from Zejula,Fruzaqla,Livtencity,Dengue vaccine.2 The scope of this data is U.S.only and includes both enforced and voluntary recalls.See FDAs web

270、site for definition of class I and class II recall3 Until FY22,figures include numbers of multiple audits conducted on the same supplier.4 Please refer to Global CSR Program for further details.46EXPLANATION OF CORPORATE PHILOSOPHY METRICS ESG METRICS ASSURANCE REPORTCORPORATE PHILOSOPHY METRICS EXP

271、LANATION OF ESG METRICS1 The period 1 April 2023 31 March 20242 The United States of America,European Union,and Japan accounted for 84.8%of our revenues in 2024.Conversion of currency and%of revenues has been calculated as per Takedas FY2023 Q4 Earnings Announcement(1 USD=144 JPY,1 EUR=156 JPY).3 “C

272、orporate Lobbying Expenditures”means payments to lobbying firms.In the US and EU,it also includes a proportion of the salaries and overheads of employees working in our Washington D.C.and Brussels offices and a proportion of trade association annual membership fees where the trade association attrib

273、utes a percentage of the fees to activities related to influencing the formulation or implementation of policy or legislation,or the decision-making processes of governments etc.4 FY2021 data includes a 50%deduction for Brussels office overheads applied to Takedas disclosure in the EU Transparency R

274、egister;this deduction was not applied from FY2022 onwards.5 “Political Contributions”means payments made directly to political parties,political committees,political fundraising organizations or candidates,or made through organizations such as councils,funds,or committees linked to or supporting sp

275、ecific political parties or candidates.It excludes Takedas corporate Political Action Committee(TakPAC)in the United States of America which is a segregated fund based on voluntary employee participation.6 “Trade Association Memberships”means payments for membership of organizations founded and fund

276、ed by companies in the pharmaceutical,vaccine,or plasma product industries to protect and advance their common interests.7 For the European Union,includes spend on pan-European trade associations only in FY2021 and FY2022,and on pan-European and French,German,Spanish,Italian,and UK trade association

277、s only in FY2023.8 For the European Union,includes membership of pan-European trade associations only in FY2021 and FY2022,and of pan-European and French,German,Spanish,Italian,and UK trade associations only in FY2023.CATEGORY/METRICFY21 DataFY22 DataFY23 DataCorporate Lobbying Expenditures3,4659.88

278、55.3713.4 Political Contributions536.647.345.4 Trade Association Memberships6,73,782.93,858.14,130.9 Below is a list of trade associations in the United States of America,Europe8,and Japan to which Takeda makes annual membership payments over 5 million yen.USA Biotechnology Innovation Organization(B

279、IO)BIOCOM California Life Sciences Association(CLSA)Massachusetts Biotechnology Council(MassBio)Takeda FY20231 Trade Association MembershipsTakeda Financial Year 20231 Spending Related to Public Policy in the United States of America,European Union,and Japan2(units:millions JPY)National Health Counc

280、il National Pharmaceutical Council(NPC)Pharmaceutical Research and Manufacturers of America(PhRMA)Plasma Protein Therapeutics Association(PPTA)EUROPE EuropaBio European Confederation of Pharmaceutical Entrepreneurs(EUCOPE)European Federation of Pharmaceutical Industries and Associations(EFPIA)Intern

281、ational Federation of Pharmaceutical Manufacturers and Associations(IFPMA)Vaccines Europe Les entreprises du medicament(LEEM-France)Association of the British Pharmaceutical Industry(ABPI-UK)Verband Forschender Arzneimittelhersteller(Vfa-Germany)Farmaindustria(Spain)Farmindustria(Italy)JAPAN Japan P

282、harmaceutical Manufacturers Association(JPMA)Kansai Pharmaceutical Industries Association Japan Association of Vaccine Industries(JAVI)Japan Blood Products Association47EXPLANATION OF CORPORATE PHILOSOPHY METRICS ESG METRICS ASSURANCE REPORTCORPORATE PHILOSOPHY METRICS EXPLANATION OF ESG METRICSExpl

283、anation of ESG Metrics4848TAKEDA 2024 ESG DATABOOKEXPLANATION OF CORPORATE PHILOSOPHY METRICS ESG METRICS ASSURANCE REPORTCORPORATE PHILOSOPHY METRICS EXPLANATION OF ESG METRICSTOTAL GHG EMISSIONSMetricQuantityUnitTotal GHG Emissions 4,265Thousand MTCO2eSCOPE 1 AND 2 GHG EMISSIONSMetricQuantityUnitT

284、otal Scope 1 Emissions279Thousand MTCO2eScope 1 Emissions from CO2266.5Thousand MTCO2eScope 1 Emissions from CH40.0Thousand MTCO2eScope 1 Emissions from NO0.0Thousand MTCO2eScope 1 Emissions from Refrigerants12.5Thousand MTCO2eTotal Scope 2 Emissions(market-based)33Thousand MTCO2eTotal Scope 2 Emiss

285、ions(location-based)282Thousand MTCO2eTotal Scopes 1+2(market-based)Emissions312Thousand MTCO2eBiogenic CO2 Emissions(Not included in Total Scope 1 Emissions)2Thousand MTCO2eEnergy MetricsQuantityUnitFuel Consumption(scope 1)4,742terajoulesPurchased Electricity Non-Renewable(scope 2)438terajoulesPur

286、chased Electricity Renewable(scope 2)2,573terajoulesOnsite Generated Renewable Energy(scope 2)16terajoulesPercent Electricity Sourced as Renewable(scope 2)85%Supplied Heating and Cooling(scope 2)160terajoulesTotal Energy Consumption(scopes 1 and 2)7,929terajoulesStatements and Notes on Consolidated

287、FY2023 Environmental,Health and Safety MetricsStatement of Consolidated Greenhouse Gas(GHG)Emissions Metrics1 Total GHG emissions calculated using scope 1 emissions total,scope 2 market-based emissions total and scope 3 emissions(to the extent presented)total49EXPLANATION OF CORPORATE PHILOSOPHY MET

288、RICS ESG METRICS ASSURANCE REPORTCORPORATE PHILOSOPHY METRICS EXPLANATION OF ESG METRICSSCOPE 3 GHG EMISSIONSScope 3 Emissions by GHG CategoryQuantityUnitCategory 12,689Thousand MTCO2eCategory 2241Thousand MTCO2eCategory 3147Thousand MTCO2eCategory 4353Thousand MTCO2eCategory 517Thousand MTCO2eCateg

289、ory 6117Thousand MTCO2eCategory 767Thousand MTCO2eCategory 101Thousand MTCO2eCategory 12264Thousand MTCO2eCategory 1557Thousand MTCO2eTotal Scope 33,953Thousand MTCO2eSUPPLIER ENGAGEMENTMetricQuantityUnitScope 3 Emissions from Categories 1,2 and 43,283Thousand MTCO2eScope 3 Emissions from Suppliers

290、Committed to Setting Science-Based Climate TargetsCategories 1,2 and 4 1,854Thousand MTCO2eVOLUNTARY CARBON OFFSET AND ENERGY ATTRIBUTE CERTIFICATE PURCHASESMetricQuantityUnitQuantity of Purchased Verified Emissions Reductions(VERs)5,522Thousand MTCO2eQuantity of Purchased Energy Attribute Certifica

291、tes(EACs)453,598Megawatt Hours(MWh)Percent Electricity as Renewable Including Energy Attribute Certificates(EACs)100%Percentage of Reported FY2022 GHG emissions mitigated by VERs and EACs purchased in FY2023100%50EXPLANATION OF CORPORATE PHILOSOPHY METRICS ESG METRICS ASSURANCE REPORTCORPORATE PHILO

292、SOPHY METRICS EXPLANATION OF ESG METRICSThe Scope 2 GHG Emissions Inventory,which accounts for all GHG emissions from the generation of purchased energy(for example,electricity,steam)consumed by the Company was prepared in accordance with the GHG Protocol Scope 2 Guidance:An amendment to the GHG Pro

293、tocol Corporate Standard authored by WRI and WBCSD.Scope 3 GHG Emissions Inventory,which includes the indirect emissions occurring both upstream and downstream within the Companys value chain,was prepared in accordance with the GHG Protocol Corporate Value Chain(Scope 3),Accounting and Reporting Sta

294、ndard authored by WRI and WBCSD.Collectively,the GHG Protocol:A Corporate Accounting and Reporting Standard,Revised Edition,the GHG Protocol Scope 2 Guidance:An amendment to the GHG Protocol Corporate Standard and the GHG Protocol:Corporate Value Chain(Scope 3)Accounting and Reporting Standard are r

295、eferred to as the“GHG Protocol”in this document.All metrics are defined further in GHG Note 2 and GHG Note 3.ESTIMATION UNCERTAINTIESData used in the preparation of the Statement of Consolidated GHG Emissions are subject to measurement uncertainties resulting from limitations inherent in the nature

296、and methods for determining such data.The selection of different but acceptable measurement techniques can result in materially different measurements.The precision of different measurement techniques may also vary.The preparation of the Consolidated Statement requires making estimates and assumptio

297、ns that affect amounts reported.The Company bases these estimates,including methodologies to calculate GHG emissions,on publicly available information,site-level information,and various other assumptions that we believe to be reasonable.The preparation of the Consolidated Statement requires making e

298、stimates and assumptions that affect amounts reported.The Company bases these estimates,including methodologies to calculate GHG emissions,on available information and various other assumptions that it believes to be reasonable.The accompanying Statement of Consolidated Greenhouse Gas(“GHG”)Emission

299、s Metrics(the“Consolidated GHG Statement”)includes the operations of Takeda Pharmaceutical Company Limited and its consolidated subsidiaries(referenced hereafter as“Takeda”or“the Company”).The Consolidated Statement has been prepared in accordance with the GHG measurement criteria as further describ

300、ed below.If not specifically noted,this Statement and subsequent Notes,which are related to GHG metrics,have been prepared based on the Companys fiscal reporting year 2023,which runs from 1 April 2023 through 31 March 2024.Where applicable,base year environmental data has also been reported based on

301、 the applicable fiscal year.BASIS OF PRESENTATIONAs used in this document,GHG Emissions Inventory refers to the lists of emission sources and associated emissions quantified using standardized methods.The Scope 1 GHG Emissions Inventory,which includes all GHG emissions that occur from sources under

302、the Companys operational control,was developed in accordance with the GHG Protocol:A Corporate Accounting and Reporting Standard,Revised Edition authored by World Resources Institute(WRI)/World Business Council for Sustainable Development(WBCSD).GHG Note Note 1-General51EXPLANATION OF CORPORATE PHIL

303、OSOPHY METRICS ESG METRICS ASSURANCE REPORTCORPORATE PHILOSOPHY METRICS EXPLANATION OF ESG METRICSORGANIZATIONAL BOUNDARIESThe Company has selected the operational control approach as the consolidation approach to define the organizational boundaries for its GHG Inventory.Accordingly,the Company inc

304、ludes GHG emissions from all owned sites and leased facilities over which Takeda has operational control to introduce and implement operating policies(except where specifically excluded as described in our operational boundaries below)and excludes those from minority-owned joint ventures over which

305、the company does not have operational control for scopes 1 and 2 reporting.OPERATIONAL BOUNDARIES SCOPES 1 AND 2 INVENTORYTakeda Owned AssetsThe Companys GHG Inventory includes scope 1 and 2 emissions from Takeda-owned commercial and industrial assets including manufacturing sites,R&D facilities,pla

306、sma collection centers,office spaces,and warehouses.This includes associated scope 1 emissions from the on-site use of fossil fuels and refrigerants,and scope 2 emissions from purchased electricity,heat,steam,and cooling.Excluded from the inventory are residential properties,undeveloped land,improve

307、d land with no recognized GHG emissions sources,and newly constructed or under construction facilities that are not yet under the Companys operational control.Leased AssetsThe Company includes leased assets that fall under the“right-of-use”definition(as defined by the International Accounting Standa

308、rds Board in International Financial Reporting Standard 16)in scope 1 and 2 emissions reporting.With the exception of the BioLife subsidiary,which includes all leases regardless of duration or value,short-term leases(duration less than 12 months)and small value lease contracts(total value less than$

309、5,000 USD/668,000 JPY)are excluded from the inventory.OPERATIONAL BOUNDARIES SCOPE 3 INVENTORYThe Companys scope 3 GHG Inventory includes emissions from the following GHG Protocol categories:Category 1:Purchased Goods and Services,Category 2:Capital Goods,Category 3:Fuel and Energy-Related Activitie

310、s(not included in scope 1 or 2),Category 4:Upstream Transportation and Distribution,Category 5:Waste Generated in Operations,Category 6:Business Travel,Category 7:Employee Commuting,Category 10:Processing of Sold Products,Category 12:End-of-Life Treatment of Sold Products and Category 15:Investments

311、.The Company excludes Category 8:Upstream Leased Assets because emissions from leased assets are GHG Note 2 Organizational and Operational Boundariesaccounted for under scopes 1 and 2.The Company also excludes Category 13:Downstream Leased Assets since leasing facilities is not in Takedas business m

312、odel and there are no known Takeda-owned assets that are leased to other entities during the reporting period.The Company excludes Category 9:Downstream Transportation and Distribution as Takedas downstream transportation and distribution is not believed to cause more than de minimis emissions and t

313、ransportation of products from Takeda to customers is included in Category 4.The Company excludes Category 11:Use of Sold Products because the use of the Companys sold products is not believed to cause more than de minimis emissions,if any,and excludes Category 14:Franchises because the Company does

314、 not operate franchises.GHG REPORTING PERIODReporting PeriodThe reporting period for current year GHG emissions and energy use is fiscal year 2023.Carbon offsets and renewable energy certifications are purchased each year to neutralize GHG emissions and energy use from the previous year;the reportin

315、g year for metrics associated with carbon neutrality is fiscal year 2022.Recalculation and Restatement of Previous Year Emissions DataIn accordance with the GHG Protocol,the Company established a process for recalculating GHG emissions for previous years and set a significance threshold of+/-5%.This

316、 threshold applies to both aggregated scope 1 and scope 2(location-based)emissions and scope 3 emissions.The Company reviews prior year emissions on an annual basis and has restated previous years emissions to account for structural changes in the Company(for example,acquisitions and/or divestitures

317、)and revisions in accounting methodologies or emission factors.This recalculation of GHG emissions is performed in accordance with the GHG Protocol“same-year/all-year”approach.GHGs Included in the InventoryEmissions data are provided in metric tonnes(MT)for each GHG separately and reported as both i

318、ndividual and aggregated total emissions in thousands of MT CO2e.The Company assesses the emissions from all applicable Kyoto GHGs,which are carbon dioxide(CO2),methane(CH4),nitrous oxide(N2O),and hydrofluorocarbons(HFCs).Other Kyoto GHGs,including perfluorocarbons(PFCs),sulphur hexafluoride(SF6),an

319、d nitrogen trifluoride(NF3),are not considered as they are not applicable to the Companys operations.Takeda additionally assesses the emissions from all applicable Montreal GHGs that are applicable to Takedas operations.The Global Warming Potentials from the Intergovernmental Panel on Climate Change

320、(IPCC)fifth assessment report(AR5),100-year time horizon were used to convert the gases into CO2e,if not otherwise specified.52EXPLANATION OF CORPORATE PHILOSOPHY METRICS ESG METRICS ASSURANCE REPORTCORPORATE PHILOSOPHY METRICS EXPLANATION OF ESG METRICSMETRIC DEFINITIONSMetricDefinitionTotal Scope

321、1 EmissionsSum of total GHG emissions from company-owned generators,heaters,boilers,vehicles,and refrigerants.Fuel ConsumptionThe sum in energy units of all fuel used in the current reporting year(including natural gas reported and estimated,diesel,heavy oil,LPG,propane,gasoline,biogenic fuels and g

322、ases,from the current fiscal year,excluding company fleet fueled offsite)Biogenic CO2 Emissions(not included in Total Scope 1 Emissions)Direct CO2 emissions from the combustion of biologically sequestered carbon.Note:associated CH4 and N2O emissions are included in Total Scope 1 EmissionsTotal Scope

323、 2 Emissions Market-BasedMarket-based purchased electricity plus emissions from all other purchased energy(for example,steam,district heat or cooling water)Total Scope 2 Emissions Location-BasedLocation-based purchased electricity plus emissions from all other purchased energy(for example,steam,dist

324、rict heat or cooling water)Total Scopes 1+2(market-based)EmissionsSum of Total Scope 1 Emissions plus Total Scope 2 Emissions(market-based)Purchased Electricity(Non-Renewable)All electricity purchased subtracting Purchased Electricity(Renewable)Purchased Electricity(Renewable)Electricity derived fro

325、m natural sources that are replenished at a higher rate than can be consumed(for example,from solar,wind,hydro,etc.)Onsite Generated Renewable EnergyRenewable energy that is physically generated within the Companys property boundary.Currently,this includes only solar electricity.Percent Electricity

326、Sourced as RenewableCalculated as per total renewable electricity divided by the sum of renewable and non-renewable purchased electricity Supplied Heating and CoolingIncludes district heating and cooling plus purchased steamTotal Energy ConsumptionSum of all fuel sources(stationary and mobile)and el

327、ectricity(excluding fuel consumed by company fleet and refrigerants)GHG Metrics Definitions,Emission Factors,and Calculation Methods53EXPLANATION OF CORPORATE PHILOSOPHY METRICS ESG METRICS ASSURANCE REPORTCORPORATE PHILOSOPHY METRICS EXPLANATION OF ESG METRICSSCOPE 1 AND SCOPE 2 EMISSION FACTORS AN

328、D CALCULATION METHODSThe table below describe the GHG emission factors used by the Company,the applicable reference sources cited,and calculation methods used for each emission source included within the operational boundary.EMISSIONS SCOP ES OU R CE D E S C R IP T IO N A N D U ND E R LYIN G DATAE M

329、 ISS IO N S FAC TO RC ALC ULATIO N M E THO D AND ASSUM P TIO NSScope 1Stationary combustion sources(for example,boilers,generators,space heaters)Service invoices consolidated in the Companys environmental metrics databaseEmissions from small offices with less than 100 full-time occupants are estimat

330、ed using emission factors from the Commercial Building Energy Consumption Survey(CBECS)(EIA,2018)EPA,Emission Factors for Greenhouse Gas Inventories,April 2022GHG Protocol,Emission Factors for Cross Sector Tools V2.0,March 2024Emissions from generators,heaters,and boilers under the Companys operatio

331、nal control are calculated by multiplying fuel volumes consumed by the corresponding emission factors.Mobile combustion sources(Vehicles,mobile generators)Service invoices consolidated in the Companys environmental metrics databaseUS EPA,Emission Factors for Greenhouse Gas Inventories,April 2022Vehi

332、cle emissions are calculated by multiplying fuel volumes consumed by the corresponding emission factors.Fleet(Company-owned or operated vehicles that are fueled offsite)Fuel usage or mileage driven reported by country fleet managersManufacturers provided vehicle emission factorsUSEPA,Comparison:Your

333、 Car vs.an Electric Vehicle,April 2024.International Energy Agency(IEA),Emissions Factors 2023,September 2023To calculate fleet Scope 1 emissions,manufacturers provided vehicle emissions factors are multiplied by the miles driven or contract miles.When vehicle emission factor data are not available for a specific vehicle,it may be estimated based on an average of similar vehicles.If vehicles are