Integrated Report 2025

Sustainability: Environmental EffortsPreservation of Natural Resources

Reducing Packaging Materials: PHC Indonesia

PHC Indonesia incorporated the Environment, Social, Governance (ESG) framework and Sustainable Development Goals (SDGs) into its business policies starting in fiscal year 2024, and has been actively driving sustainable initiatives ever since. As part of these efforts, we launched a Kanban project, which is a streamlined production system, for our Biomedical division products. In this project, teams organized all necessary parts and materials into complete kits on the supplier side, and these kits were delivered to the warehouse using special carts made by PHC Indonesia. This kitting approach significantly reduced the use of plastic packaging materials and wooden pallets traditionally required during transportation, thereby minimizing environmental impacts. As of mid-July 2025, this project has successfully reduced roughly 12 kilograms of plastic waste. Additionally, by improving operational efficiency, it is expected to save around USD 500,000 annually.

The key to the success of this project was close collaboration with suppliers. By sharing challenges and working together to find solutions, PHC Indonesia and its partner companies developed a mutually beneficial mechanism. This initiative marks a significant step toward realizing our vision of growing together with suppliers.

PHC Indonesia is now considering extending the Kanban project to other product lines to further enhance efficiencies and reduce environmental impacts.

Going forward, PHC Group will continue working with suppliers and employees to achieve a more sustainable future.

PHCインドネシアでのようす

Employee Voices

Through the Kanban project above, we developed strong ties between suppliers and our internal team, enabling us to reduce environmental impacts while improving operational efficiency. This initiative represents a major step toward achieving our ESG and SDG goals. We also consider that growing together with stakeholders in this way is essential for realizing a sustainable society. Together with employees and partners, we aim to continue making responsible choices for a better future.
As the saying goes, “Small hinges swing big doors,” meaning that small actions and seemingly trivial efforts can lead to significant outcomes.

Ika Puspa Dewi MC Logistics Department, PHC Indonesia

Ika Puspa Dewi

Water Resource Initiatives: PHC Indonesia

PHC Group is committed to the efficient use and protection of water resources, balancing business activities and environmental conservation.

At our main production sites, we conduct water quality testing and implement other measures to properly manage wastewater while continuing efforts to minimize environmental impacts. Through these activities, we aim to coexist with local communities and contribute to a more sustainable society.

As one of our main production sites, PHC Indonesia seeks to conserve water resources in its daily operations.

Specific examples of initiatives at this site include:

  1. 1. Management of Water Consumption with Utility Meters
    We have installed utility meters in specific areas of the site to record detailed water consumption. By using this data, we are working to reduce water waste and promote more efficient usage.
  2. 2. Recording of Daily Water Consumption
    We have adopted a system of manually recording our daily water consumption to gain a detailed understanding of usage patterns. This allows us to respond quickly to any abnormalities that may arise.
    水資源の取り組み
  3. 3. Regular Inspection of Water Pipes
    We regularly conduct inspections of water pipes within the site to prevent leaks and damage. This enables the early detection and repair of leaks, helping to prevent the waste of water resources.
  4. 4. Installation of Rainwater Infiltration Devices
    We have installed water seepage pits and biopore holes to allow the natural infiltration of rainwater into soil. This initiative contributes to groundwater recharge and helps maintain the health of local water cycles.
    These initiatives are being implemented as part of our daily operations. Through such consistent efforts, PHC Group will continue to conserve water resources and utilize them responsibly.
    水資源の取り組み

Employee Voices

At PHC Indonesia, water usage is limited to non-industrial purposes, and our current focus is on preventing unnecessary waste. We are taking steady steps, such as raising employees awareness of water conservation needs and conducting daily pipe checks to prevent leaks. Going forward, we are considering initiatives such as utilizing rainwater and other ideas to manage our water resources more sustainably.

Idvan BadrunHuman Resources Department, PHC Indonesia

Idvan Badrun