Daiichi Sankyo Company (4568) Status Update summary

Sustainability and Strategic Initiatives

• Focus on sustainable growth through global business expansion, science & technology, and value co-creation with stakeholders, supporting the 2030 Vision.

• Eight materialities identified for sustainable growth, with annual management cycles for monitoring, goal setting, and KPI review; progress is generally on track but challenges remain in reducing CO2 emissions and increasing female representation in senior management.

• CO2 emissions intensity reduced by 25.9% from FY2020, with a target of 15% reduction by FY2025; renewable electricity utilization rate at 80%, and waste plastic recycling rate above 70%.

• Plans to establish a Sustainability Committee in April 2025 to further strengthen the global sustainability framework and ensure ESG compliance.

• Investments in intellectual, human, manufactured, social, and natural capital are prioritized as pre-financial capital to drive future cash flow.

Human Capital and Organizational Development

• Human capital is positioned as the most important asset, with strategies to attract, develop, and retain diverse talent globally, especially in oncology and biopharmaceuticals.

• Initiatives include DS Academy for global leadership, unified HR systems, and programs to foster the One DS Culture, with a 39% increase in employees outside Japan.

• Women's empowerment is promoted through targeted KPIs, proactive training, flexible work systems, and global/regional programs, with female senior managerial employees at 18.7% and a target of 30% by FY2025.

• Employee engagement is enhanced through direct dialogue, global surveys, workshops, and fostering a culture of learning and inclusion, with a positive response rate at 86%.

• Specialized professionals are acquired and developed to strengthen key business areas, with significant investment in talent development and support for female managers through the SWAN network.

Corporate Governance, Board Diversity, and Compensation

• Board composition is now 50:50 inside to outside directors, with a focus on diversity in gender and international backgrounds; ongoing efforts to appoint diverse members.

• Compensation and nomination committees, led by independent outside directors, ensure transparent processes for executive evaluation, succession, and board composition.

• Executive compensation system is reviewed regularly, referencing global and domestic peers, and includes clawback provisions and performance-based incentives.

• Corporate governance structure has evolved to enhance decision-making and supervisory functions.

• Outside directors highlight the integration of Japanese and global workplace cultures, with non-Japanese members in key overseas roles and high engagement.