Environmental Initiatives

• *1 Emissions associated with in-house fuel consumption
• *2 Emissions associated with in-house power usage

The MEDIPAL Group is mainly engaged in the wholesale business in the pharmaceuticals, health and beauty fields, and contributing to build a sustainable society through its business activities. As a company responsible for distribution, we consider reducing greenhouse gas emissions to be a pressing issue. We are working to optimize the entire supply chain and are progressing with initiatives to reduce the environmental impact of our operations and achieve the Sustainable Development Goals (SDGs).
When implementing these environmental initiatives, we have defined Initiatives for Decarbonization as one of our Material Sustainability Tasks (Materiality), and have set medium- to long-term targets of a 50% reduction in greenhouse gas emissions by FY2031 (versus FY2021 levels) and carbon neutrality by FY2051. To achieve these targets, we are implementing a number of different initiatives with the goal of building an environmentally friendly distribution model.

• Greenhouse gas emissions results for each fiscal year

Optimizing pharmaceutical distribution

In our prescription pharmaceutical wholesale business, we are collaborating with our customers, including drugstore and dispensing pharmacy chains, to build an optimized pharmaceutical distribution model that reduces greenhouse gas emissions.
Specific measures include analyzing and managing the optimal inventory of pharmaceuticals for each store to streamline ordering/supplying and delivery operations for all parties, thus reducing greenhouse gas emissions.
These initiatives will help achieve efficient operations, improve productivity, promote workstyle reforms and ensure more environmentally friendly practices, all of which contribute to a more sustainable society.

Reducing product returns

PALTAC CORPORATION is working with business partners to reduce product returns towards build a more sustainable distribution cycle.
Product returns are standard commercial practice in the cosmetics, daily necessities, and OTC pharmaceuticals industry.
As well as generating additional costs for product sorting and delivery, product returns increase environmental impacts through greenhouse gas emissions and product waste. Returns occur during the process of quickly introducing products to stores in response to Japan’s four seasons and changing consumer needs, and are inextricably linked to lost sales opportunities. We must maintain appropriate inventory levels by coordinating right across the supply chain, creating sales spaces that satisfy consumer needs (and do not result in sales opportunity losses) and reducing product returns.
PALTAC CORPORATION is working to reduce product returns by liaising with retailers and manufacturers from the early stages, to assess store sales and inventory levels, movements in sales indicators for seasonal products as temperatures change, as well as information on upgraded or discontinued products, and to implement the right solutions at the right time, including preventing excess inventory levels by transferring stock between stores or putting a stop on order placement.

Modal shift

MEDICEO CORPORATION is working on a joint project with Japan Oil Transportation Co., Ltd., Japan Freight Railway Company, and Japan Freight Liner Company to achieve a modal shift* in pharmaceutical transportation between distribution centers.
The project promotes the switching of product transportation in some areas away from conventional large trucks and onto more environmentally friendly railroad containers, to reduce greenhouse gas emissions. The project started using railroad container transportation on routes between Saitama ALC and Tohoku ALC, and was expanded in February 2023 to include routes between Saitama ALC and Nishi-Nihon Distribution Center. Through these efforts, greenhouse gas emissions have been reduced by around 77% compared with conventional transportation methods, which converts to a reduction in annual emissions of around 352 t-CO₂.

* Modal shift: Shift of transportation of goods from trucks and other motor vehicles to modes with lower environmental impact such as railways and ships.

* ALC: Area Logistics Center
A state of art distribution center that supplies prescription pharmaceuticals, medical materials and clinical diagnostic reagents, etc., primarily to dispensing pharmacies, hospitals and clinics.

Introduction of EVs

We are installing charging stations and other infrastructure at each bases across the MEDIPAL Group and are introducing EVs.
By switching from vehicles powered by conventional fossil fuels, we are working to reduce greenhouse gas emissions associated with in-house fuel consumption (Scope 1).

Environmentally friendly product development

One of PALTAC's new initiatives to increase ethical consumption is to develop environmentally friendly products that use waste plastic as raw materials, through collaboration with companies that develop products and materials to facilitate resource circulation. As well as products from other manufacturers, PALTAC is developing its own products with the goal of actively contributing to the distribution of more high-value-added products that allow consumers to appreciate how they are helping the environment.

Use of Eco-Friendly Electric Power

At the Hanshin ALC of MEDICEO CORPORATION, we have introduced renewable energy in-house power generation facilities, such as roof-top solar panels. The electric power thus generated is used at facilities on site, covering for some of the power used by the Hanshin ALC. In addition, at some facilities, we have switched to eco-friendly electric power, which is helping to reduce greenhouse gas emissions from electric power use by the Company (Scope 2).

Reusable delivery boxes

The MEDIPAL Group uses collapsible plastic containers and tote boxes that can be reused multiple times for product transportation. The utilization of such reusable materials reduces waste volumes and contributes to greenhouse gas emissions reductions.

Proper Waste Disposal Manual

The MEDIPAL Group actively promotes reduction and proper disposal of waste in accordance with relevant laws, including the Basic Law for Promoting the Creation of a Recycling-Oriented Society.
We have produced a manual on proper waste disposal, which contains information on waste disposal procedures with a focus on pharmaceuticals. Based on this manual, we dispose of waste appropriately, in accordance with law.

Introduction of a Recycling System for Confidential Documents

We are reducing the use of shredders and introducing a confidential document recycling system (locked recycling box) to facilitate recycled paper recycling. Confidential documents disposed of in these boxes are recycled by a professional contractor into cushioning and other materials.

Recycling Compacted Cardboard

At the MEDIPAL Group's main distribution centers (ALCs and RDCs*), the cardboard boxes left over in large volumes each day are turned into compacted cardboard in a crusher. (The process from compaction to baling and discharge is automated.)
After being compacted into a cube, the cardboard is collected by waste paper companies for recycling as toilet paper and other products.

* RDC: Regional Distribution Center
Large-scale distribution centers that handle cosmetics, daily necessities, over-the-counter pharmaceuticals and other items. They supply products to retailers.