November 29, 2022

Dear stakeholders,

I am pleased to confirm that Astellas Pharma Inc. reaffirms our support for the Ten Principles of the United Nations Global Compact in the areas of Human Rights, Labour, Environment and Anti-Corruption. Our continuous declaration of support since October 2011 is based on our commitment realizing our business philosophy “contribute toward improving the health of people around the world through the provision of innovative and reliable pharmaceutical products”. As a consistent supporter of the United Nations Global Compact, Astellas conducts its daily business activities based on the 10 principles advocated by the United Nations, and we disclose the activities through our major communication channel such as our integrated report and corporate website.

Sincerely yours,
Kenji Yasukawa
President and CEO

The Astellas Charter of Corporate Conduct and the Astellas Group Code of Conduct clearly state that members of the Astellas Group shall respect human rights and the personality and individuality of all its employees, observe all applicable international rules and local regulations, and embrace all cultures and customs. The recognition of the importance of respecting human rights is shared by Group companies worldwide.

Astellas has disclosed its Position on Human Rights since April 2017. Wherever we operate, Astellas complies with applicable local labor and employment laws and respect internationally-recognized basic human rights and labor standards, such as the International Bill of Human Rights, the UN Guiding Principles on Business and Human Rights (UNGPs), and the International Labour Organization's (ILO's) Declaration on Fundamental Principles and Rights at Work.
Also, Astellas conducted a human rights impact assessment and has identified five human rights issues to which we pay particular attention as human rights in clinical trials and other research and development activities, product safety and counterfeit drugs, Access to Health, human rights in the workplace and human rights in the community and environment. Moreover, under the U.K. Modern Slavery Act 2015, we publish a Slavery and Human Trafficking Statement for each fiscal year, describing what steps we have taken to address this risk in our own operations or our supply chains.

Astellas also respects children’s human rights such as those enshrined in the Children's Rights and Business Principles in not only prohibiting child labor but also conducting pharmaceutical research and development related to the development of pediatric formulations.

We have a “Policy on Respect in the Workplace/Prevention of Discrimination and Harassment". We publish ”Astellas prohibits illegal acts of discrimination and harassment based on age, color, disability, employment status, ethnic origin, marital status, nationality, race, sex, sexual orientation, religion or belief, gender identity or expression, veteran status, or any other characteristic protected by applicable law.” under the policy.

■https://www.astellas.com/en/sustainability/respect-for-human-rights
■https://www.astellas.com/en/about/policies-and-position-statements?param=expend-tit-human#ethics
■https://www.astellas.com/en/system/files/policy_on_respect_in_the_workplace_en.pdf

Astellas provides an e-learning program to introduce the Astellas Group Code of Conduct which states among other things our commitment to respecting human right including the prohibition of child labour forced labour. Full-time and part-time directors, officers and employees worldwide are required to take this program. Astellas provides business partners with the Astellas Business Partner Code of Conduct.

We also have established a system for swiftly responding to human rights issues that includes the setting up of external and internal helplines, as well as conducting training sessions for employees.

Reflecting the United Nations Guiding Principles on Business and Human Rights (UNGPs), our activities to combat Modern Slavery, described below are risk based and will continue to correspond with the level of risk identified. Astellas has implemented a Third Party Lifecycle Management (TPLM) program. The TPLM program assesses our business partners against established requirements covering several global risk domains (including human / labor rights) to ensure compliance. Astellas seeks to actively and appropriately manage risk throughout the lifecycle of a third party relationship. This program is overseen by Astellas departments responsible for risk domain(s) that are properly aligned to their expertise. As part of the TPLM program, Astellas conducts questionnaire surveys with both Astellas personnel who engage business partners as well as business partners in our supply chain, while assigning subject matter experts to review those responses prior to entering into an agreement. Astellas seeks to continuously measure, mitigate and monitor business partners’ inherent risk.

The Astellas Business Partner Code of Conduct references the human rights of workers and specifically provides that business partners shall not use forced, bonded or indentured labor, involuntary prison labor or child labor. We provide business partners with the Astellas Business Partner Code of Conduct.

■https://www.astellas.com/en/sustainability/respect-for-human-rights
■https://www.astellas.com/en/system/files/uk_modern_slavery_statement_en_fy22with_sign.pdf

Astellas monitors the effectiveness of our measures in human and labour right.
・Review the responses to the questionnaires received from business partners;
・Monitor Modern Slavery concerns raised with whistleblowing hotlines;
・Develop a corrective and preventative action plan, including auditing, where we assess that there may be a heightened risk of Modern Slavery at specific business partners.

In the year ended March 2022, there were no critical human rights issues or other issues of common, worldwide concern reported in the survey.

■https://www.astellas.com/en/system/files/uk_modern_slavery_statement_en_fy22with_sign.pdf

Astellas has a “Position on Human Rights” including to labour. The below is part of this.

“Astellas is committed to respecting the human rights of all people (within and outside the Company) and upholding high labor standards. Wherever we operate, we comply with applicable local labor and employment laws and respect internationally-recognized basic human rights and labor standards, such as the International Bill of Human Rights, the UN Guiding Principles on Business and Human Rights (UNGPs), and the International Labour Organization's (ILO's) Declaration on Fundamental Principles and Rights at Work. In addition, Astellas is a signatory of the UN Global Compact, endorsing the Ten Principles and supports the transparency requirements of the UK’s Modern Slavery Act and similar legislation.

Astellas respects children’s human rights such as those enshrined in the Children's Rights and Business Principles in not only prohibiting child labor but also conducting pharmaceutical research and development related to the development of pediatric formulations.

We also expect our business partners to meet basic human rights and labor standards.

When violations of these rights occur, Astellas recognizes the need and right for victims to have access to effective remedies (judicial and non-judicial).”

Please find the whole our position from the following link.
■https://www.astellas.com/en/about/policies-and-position-statements?param=expend-tit-human#ethics

Investment in our people is important for the future of Astellas, in addition to enhancing our current ability for execution. We continue to invest with both short-term and long-term perspectives. We want our employees to feel empowered to shape the future of our organization. To that end, we are building a workplace where diverse teams and individuals can thrive amid a culture of mutual learning and respect. We are committed to creating an environment where all our employees can become peak performers at their jobs and stay both physically and mentally healthy.

Astellas is working to promote diversity so that diverse individuals can play a role in the Company, irrespective of their identity. Respecting the diverse values of our employees and reflecting their various perspectives in our business activities not only heightens creativity in our organization, but also helps to attract and retain talented people as employees and enhances our competitiveness. Based on our global Engagement, Diversity, Equity and Inclusion philosophy, Astellas integrates diversity, equity and inclusion into each region.

■https://www.astellas.com/en/investors/integrated-report

JAPAN:34%
United States:24%
Established Markets* :24%
International Markets** :10%
Greater China*** :8%

Foreign nationality:51%
Japanese nationality 49%

Groupwide:44%

Mid-career hiring:57%
New graduates hiring:43%

* Established Markets : Europe, Canada, Australia
** International Markets : Russia, Latin America, Middle East, Africa, Southeast Asia, South Asia, Korea, Export sales, etc
*** Greater China: China, Hong Kong, Taiwan

■https://www.astellas.com/en/investors/integrated-report

Astellas' basic stance toward the environment as well as the health and safety of its employees is outlined under the Astellas EHS Policy. Moreover, Astellas is working organizationally and continuously toward achieving this stance as described in the Astellas EHS Guidelines. In addition, Astellas has set medium-term targets for its key priorities in its EHS Action Plan and is working to achieve those targets.

Astellas Business Partner Code of Conduct includes environmental policy which is consistent with Global Compact environmental principles.

■https://www.astellas.com/en/sustainability/environment-management
■https://www.astellas.com/en/sustainability/sustainability-in-business

Our Environmental Action Plan sets out short-term and medium-term targets for our activities regarding the key points of the Astellas Environment, Health & Safety Guidelines. We renew our action plans on a rolling basis, by reviewing progress and conditions during the previous year and incorporating our findings into our action plan for the following year.

Astellas is committed to information transparency regarding our company responses to factors relating to the environment. We proactively share details of our energy consumption, measures to combat climate change, effective use of resources, and prevention of environmental pollution.
For more details, please visit the environmental websection.
■https://www.astellas.com/en/sustainability/environment

Fundamental policies and action plans relating to the environment are positioned as an important issue in sustainability in which Astellas is engaged. Responses to various environmental issues, including climate change, and formulation of action plans are discussed by the EHS Committee. Committee members are appointed on a cross-functional basis and details of discussions are reported to Chief People Officer and Chief Ethics & Compliance Officer (CPO &CECO). Climate change initiatives and more transparent disclosure are a regular agenda item for the Board of Directors as a strategic target, and the Committee reports to the Board of Directors on disclosure in line with TCFD recommendations, including assessments of climate change risks and opportunities, as one aspect of its sustainability activities.
The system is that a specialist department monitors risk management related to the environment and periodically reports to CPO & CECO who issues instructions as necessary. The Executive Committee or Board of Directors discuss and decide on important issues, such as items related to risks to the environment other than climate change.

Astellas has acquired ISO 14001 certification covering all its production sites in Japan and outside Japan, and also acquired ISO 45001 certification for occupational health and safety at its European production sites.

As for the response to accidents and emergencies, being prepared for emergency situations caused by an accident or natural disaster can help to prevent an environmental catastrophe and minimize damage. Accordingly, we have developed specific measures and procedures. Moreover, we conduct regular education sessions and training drills, and reconfirm and test the validity of our procedures, communication networks and the division of roles focusing on risks that are recognized as a high priority. In this manner, we continue to work diligently to reduce environmental risk.

In particular, the discharge of harmful substances could lead to the pollution of rivers as well as cause problems at public sewage treatment plants. This in turn could have a grave impact on regional communities. In preparation for accidents and emergency situations, we are therefore systematically implementing measures for the prevention of environmental pollution, including the installation of backup equipment, while working to reduce the risk of pollution. In addition, in order to avoid accidents and other problems, we are bolstering efforts to optimize the operation and management of wastewater treatment systems, and to monitor and measure the quality of water draining out of our plants to confirm compliance with relevant effluent standards.

■https://www.astellas.com/en/sustainability/environmental-action-plan
■https://www.astellas.com/en/sustainability/environment-management

Result of fiscal 2021

Measures to Address Climate Change

①Reduce GHG emissions (Scope 1 + Scope 2) by 30% by fiscal 2030 (Base year: fiscal 2015) (Emissions in the base year: 202 kilotons)
②Reduce GHG emissions (Scope 3) by 20% per unit of revenue by fiscal 2030 (Base year: fiscal 2015)

①Ratio to base year
41% decrease
(Emissions: 119 kilotons)
②Ratio to base year
22% decrease

Measures for the Conservation of Natural Resources

Enhance water resource productivity * by around 20% of the fiscal 2016 result by the end of fiscal 2025

Ratio to base year
17% improvement

Waste management

Improve waste generated per unit of revenue by around 10% of the fiscal 2016 result ** by the end of fiscal 2025

Ratio to base year
1% deterioration

Biodiversity

Quadruple the biodiversity index by fiscal 2025 from the fiscal 2005 level

Ratio to base year
3.8 times
* Water resource productivity = Revenue (¥ billion)/Water resources withdrawn (1,000 m3) (For research and production sites in Japan and overseas)
** Waste generated per unit of revenue = Volume of waste generated (tons)/Revenue (¥ billion) (For research and production sites in Japan and overseas)

Astellas had no environment-related accident over the past five years, including fiscal 2021. Regarding environment-related complaints, a company neighboring the Toyama Technology Center consulted with Astellas in terms of sunlight reflection from our equipment. An appropriate measure was later taken to avoid the reflection.

Astellas publishes its EHS report annually. Key environmental performance data have been assured independently by KPMG AZSA Sustainability. For more detail, please access the report. ■https://www.astellas.com/en/sustainability/environmental-report

■https://www.astellas.com/en/sustainability/environmental-action-plan
■https://www.astellas.com/en/sustainability/environment

Astellas has established the Astellas Group Code of Conduct that ensure the unwavering dedication of every employee to follow ethics and compliance as the foundation for every facet of Astellas’ business activities. The entire management and the employees of the Astellas group share a common business philosophy, Charter of Corporate Conduct, and Group Code of Conduct, and every action is based on them. By implementing the philosophy and codes with integrity, Astellas seeks to be a chosen and trusted enterprise by all stakeholders.

We also have the policy on global anti-bribery and anti-corruption. Astellas prohibits bribery or other corrupt activity, either directly or through the engagement of third parties, in all of its interactions with government officials, government organizations, health care professionals and health care institutions. Astellas requires all of its employees and third party representatives to maintain appropriate relationships with government officials, government organizations, health care professionals and health care institutions in a manner that ensures free and fair competition in all aspects of the conduct of our business.
As part of their interactions with government officials, government organizations, health care professionals and health care institutions, Astellas prohibits all employees, either directly or indirectly, from:
• offering, promising, giving or authorizing, soliciting or accepting bribes which may include money, hospitality or anything else of value;
• providing any financial or other advantage; or
• ignoring or countenancing the activities of any Astellas employees or agents who offer, promise, give, authorize, solicit or accept any bribe in relation to Astellas’ business;
when the purpose of doing so is to:
• obtain or retain business for Astellas;
• influence any act or decision in connection with Astellas business activities;
• obtain an improper advantage;
• violate a duty of loyalty; or
• reward improper conduct.

■https://www.astellas.com/en/about/charter-of-corporate-conduct-group-code-of-conduct
■https://www.astellas.com/en/system/files/EN_Policy%20summary%20on%20ABAC%20EN%20JP%20FINAL%202017-03-23.pdf

To achieve our mission, it is essential that we ensure all Astellas interactions, including those with HCPs, HCOs and patient organizations, are conducted in a legal and ethical manner and always for the ultimate benefit of patients. We do this through a comprehensive Ethics & Compliance Program with established global policies, processes and systems, tools and controls, and by proactively training employees on healthcare compliance, conducting compliance risk assessments and compliance monitoring, including on aspects of its ABAC (anti-bribery anti-corruption) compliance program, to ensure there is no undue influence or even appearance of misleading or influencing a Healthcare Professional. Through continuous improvement of our ABAC program, we ensure its effectiveness by being prepared to address current and future risks. This enables sustainability of our culture of Integrity.

It is important to empower ownership of ethics and compliance within Astellas. One way we do this is by how we approach our own conflicts of interest. That is because the foundation of an effective Ethics and Compliance program is based on how a company manages its own internal behavior. By enhancing the disclosure process and providing global training resources, we continue to empower employees to identify and raise potential conflicts, resulting in increased business ownership of compliance.

We earn society’s trust every day. Physicians, patients, employees, suppliers, and other individuals may share their personal information with Astellas, and they trust us to keep that information safe, to use it transparently, and to always handle it with care. Our Ethics & Compliance Program ensures the appropriate use of the personal information that is entrusted to us by individuals.

The Ethics & Compliance Program embraces all employees to foster an effective and robust integrity culture at Astellas by ensuring a psychologically safe speak up environment. Ethics & Compliance continuously encourages employees to speak up to report potential or actual violations of the Group Code of Conduct, as well as any unethical behavior or business practices, or receive advice on how to react in the event they discover or suspect misconduct. Speak Up is critical to ensure our integrity culture at Astellas. This Speak Up culture is further supported and enabled by a global investigations program that is prompt, fair, robust and objective.

■https://www.astellas.com/en/investors/integrated-report

Astellas’ Chief Ethics & Compliance Officer has overall responsibility for overseeing and implementing Astellas’ global Ethics & Compliance Program, with the assistance of the Global Compliance Committee. The Chief Ethics & Compliance Officer, in turn, has designated Ethics and Compliance professionals with global and regional responsibilities for Astellas’ Ethics & Compliance Program.

Astellas also has been continuously enhancing the organizational structure for the Ethics & Compliance function. The global Ethics & Compliance operating model allows Astellas to continue to advance and apply a more consistent global standard while still being respectful of local cultural and legal differences.

The Compliance Excellence and Transformation team in the Ethics & Compliance function continues to drive consistency on a global basis for activities that are core to the Ethics & Compliance program, such as training, communications, risk assessments, monitoring, compliance policies/processes, transparency with respect to pharmaceutical company relationships with healthcare professionals and healthcare organizations, and investigation processes.

Our Ethics & Compliance professionals continue to partner with the business to reinforce the importance of integrating integrity, ethics and compliance into business processes as doing so is critical to the sustainable success of Astellas.

■https://www.astellas.com/en/about/ethics-compliance
■https://www.astellas.com/en/about/structure-to-promote