Environment

Basic Approach

We recognize the importance of maintaining and preserving the global environment, promoting environmentally friendly business activities, and monitoring and improving environmental performances of our business operations, such as CO2 emissions, electricity and water consumption. Major environmental performance data are disclosed annually through a verification process by an external independent organization. In addition, we regard responses to climate change issues, including global warming, as an important management issue, and continue to work on achieving carbon neutral (virtually zero carbon dioxide emissions) across our own business activities.

Actions against climate change and reducing CO2 emissions

Expanding the Use of Renewable Energy

Since January 2022, PeptiDream has been progressively transitioning the electricity used at its business sites to virtually CO2-free sources, achieving carbon neutrality for Scope 1 and Scope 2 emissions. In January 2024, PDRadiopharma began introducing renewable energy at its Chiba plant, further advancing the Group’s sustainability efforts. As a result, the Group’s overall renewable energy usage rate has reached 30% of total electricity consumption.

TCFD Recommended Disclosure Items

PeptiDream recognizes the importance of climate-related financial disclosures and, in 2020, expressed its support for the recommendations of TCFD. We have examined and addressed the disclosure items recommended by TCFD and disclose information in line with its recommendations.

❶Governance

The Sustainability and Governance Committee, which is an advisory body to the Board of Directors, comprehensively manages and supervises the identification and countermeasures of risks and opportunities related to climate change and biodiversity, as well as initiatives to reduce GHG emissions and water as one of the risks and opportunities related to sustainability. In addition, the Board of Directors receives a report from the Sustainability and Governance Committee once every three months on important matters related to climate change and biodiversity and endorses the key matters related to sustainability.

❷Strategy

PeptiDream categorizes each of the transitional and physical risks and opportunities related to climate change and biodiversity and deliberates and reviews them as needed. In 2024, we conducted a quantitative analysis of climate change-related risks that are expected to have a particularly large impact and for which future projection parameters are available.

Details of other climate-related risks and opportunities are disclosed in our Annual Securities Report for the fiscal year ending December 2024.

❸Risk Management

Risks related to climate change and biodiversity, which have a significant financial or strategic impact on the Company's business, are comprehensively deliberated by the Sustainability and Governance Committee, including financial perspectives, and regularly reported to the Board of Directors. Risks related to climate change are integrated into the Group’s risk management system and are evaluated and managed as one of the business risks.

❹ Indicators and Targets

In order to achieve the 1.5°C target consistent with the Paris Agreement, we have set a target to reduce Scope 1+2 emissions from our business activities by 100% by 2030 (vs 2023 baseline), and we are promoting initiatives such as switching to renewable energy. In addition, we have set a target of reducing Scope 3 CO2 emissions by 20% (vs 2023 baseline) and are working together with our suppliers and other stakeholders to achieve this target. We have obtained certification from the Science Based Targets initiative (SBTi) for our greenhouse gas emissions reduction target for 2030, recognizing it as a scientifically grounded level aligned with the 1.5°C target consistent with the Paris Agreement. Environmental performance data, including CO2 emissions and water usage, are disclosed annually and monitored through a verification process conducted by external organizations.

PeptiDream Group’s data on CO2 emissions are listed here.

Environmental and Global Warming Countermeasures at Headquarter and Laboratories

Since July 2017, we have been operating our business in the following new, environmentally friendly, high-energy-efficiency office building. On February 15, 2016, our headquarter and laboratories were certified as S rating, the highest rating in the CASBEE (Comprehensive Assessment System for Built Environment Efficiency) Kawasaki 2015 edition/ Implementation Design Stage Assessment.

• Enhanced insulation of exteriors and windows
• Reduction of solar radiation heat load by exterior louver
• LED lighting in the whole building
• High-efficiency equipment used for air conditioning and elevators
• Compatibility between solar radiation shielding by translucent film louvers and the use of natural light

Biodiversity Conservation

Joining the Taskforce on Nature-related Financial Disclosures (TNFD) Forum

In December 2024, PeptiDream joined the TNFD Forum, an international initiative established to support the development of corporate risk management and disclosure frameworks related to natural capital. We endorse the principles of the Taskforce on Nature-related Financial Disclosures (TNFD) and actively support its mission. In collaboration with the TNFD Forum, we are working to identify and assess our business activities’ dependencies and impacts on nature. This includes evaluating related risks and opportunities, and preparing for disclosures aligned with the TNFD framework.

Prevention of water and soil contamination

PeptiDream complies with environmental laws, ordinances and agreements, such as the Water Pollution Control Law and the Sewerage Law and conducts regularly wastewater treatment that meets environmental standards. Wastewater at PeptiDream headquarters and research labs is regularly monitored and reported to Kawasaki City, and the pollution concentration is below the standard value. In addition, we have confirmed that the number of organic solvents and heavy metals used in our R&D activities is below the standard values.
Wastewater at the Chiba Plant of PDRadiopharma is purified in a septic tank at the plant after confirming that it does not contain significant radioactive substances, and the purified water is continuously measured for total organic carbon (TOC) and pH and discharged into the river via an observation pond where carps are raised. Before discharging the water, we measure the radioactivity again just in case. Radioactive wastewater generated in the production process is strictly controlled according to the concentration and treated in accordance with the law. Wastewater discharged from Kawasaki Laboratory and Ibaraki Laboratory is discharged into the sewer system in compliance with environmental laws after confirming that the concentration of radioactive substances is below the concentration limit stipulated by law.

Water consumption reduction activities

PeptiDream’s internal portal site visualizes daily and monthly water consumption and fosters employees’ awareness of the environment. Efficient operation of humidification in indoor air conditioning is underway to reduce water consumption and wastewater. We have also adopted water-saving toilets and exterior wall materials with photocatalytic and self-cleaning effects.

Research using pathogenic microorganisms and genetically modified organisms

Experiments using research samples that may contain pathogenic microorganisms and pathogens, as well as genetic modification experiments, are conducted in compliance with relevant laws and regulations such as the Cartagena Act and national guidelines. We have established internal rules regarding the handling and storage of these pathogens and genetically modified organisms, as well as the safety management necessary to ensure a safe working environment. Under the supervision of internal Directors, the Biosafety Committee operates and strives to prevent experimental accidents by deliberating experimental plans and providing safety education to employees engaged in related work.

Please access our Biodiversity and No Deforestation Policy from here.

Reducing waste

Waste separation & disposal and improvement of recycling rate

PeptiDream has been working to reduce and recycle laboratory and industrial waste by providing thorough guidance on waste sorting and clear labeling as part of its efforts to ensure thorough separation of waste. We outsource the disposal of laboratory and industrial wastes to contractors and dispose of it in a manner that complies with the law. We also properly check and manage manifests (industrial waste management slips) when waste disposal is outsourced.
Radioactive waste generated in PDRadiopharma’s production process is handed over to specialized companies in accordance with the law and managed separately from ordinary waste.

Office paper reduction

At PeptiDream, we are promoting various measures to reduce the use of office paper in our business operations. Specifically, we have introduced the use of Electronic Laboratory Notebook, 2-in-1 and default settings for duplex printing, alarms when more than 100 pages are printed, and paperless conferences. We continue to introduce office paper compliant with the Green Purchasing Law.