Mitsubishi Tanabe Pharma – Paolo Miguel Delos Reyes – 2024

Summary

Paolo “Pao” Delos Reyes developed a Supplier ESG Engagement Program and yearly implementation plan for development operations at Mitsubishi Tanabe Pharma America (MTPA). He did so by assessing and interviewing a select number of suppliers to explore opportunities for MTPA and its suppliers to collaborate on ESG goals and ultimately Net Zero targets.

Goals

In 2023, MTPA conducted a supplier ESG maturity assessment to determine ways to engage suppliers to improve their ESG efforts. The company conducted interviews with select suppliers based on prioritization factors to discuss supplier ESG initiatives and to identify opportunities for collaboration. To further build on this assessment, Pao was enlisted to develop a holistic supplier ESG engagement program, conduct a follow up assessment, and interview suppliers to determine their ESG progress over the twelve months and identify additional opportunities for collaboration.

Solutions

To achieve MTPA’s goals, Pao produced the following output:

• Carbon Footprint Playbook: After MTPA conducted its initial carbon footprint calculation, Pao validated the footprint methodology and provided instructions for MTPA’s team to calculate the footprint in future years. This footprint, which includes a supplier breakdown using spend-based emission factors, provides critical insights that shape the supplier engagement program.
• Supplier Engagement Program: Pao developed a supplier engagement program that drew from existing frameworks, such as the Science-Based Targets Initiative (SBTi), Transform to Net Zero (TONZ), and the Exponential Roadmap Initiative. To guide the program and assist with implementation, Pao included principles, detailed instructions, and external resources.
• Supplier ESG Maturity Assessment and Interviews: Using the carbon footprint assessment, supplier spend data, and supplier relationship growth forecasts, the original cohort of suppliers was expanded 50% for the second year of the assessment. >75% of the year 2 cohort were interviewed to discuss ESG efforts and identify collaborative opportunities.

Potential Impact

With the supplier engagement program in place, MTPA will be able to focus on deepening collaboration with suppliers that represent close to 80% of its estimated Scope 3 emissions. Additionally, the carbon footprint can be refreshed on an ongoing basis and will serve as a baseline data source that, together with the supplier engagement program, can help drive long-term emissions reductions. The supplier ESG maturity assessment will provide structured plans and interventions to engage these suppliers based on their ESG maturity and provide quantifiable metrics for evaluating suppliers on ESG in the RFP process. Lastly, the supplier interviews will allow MTPA to identify ways to collaborate on new opportunities that can further help meet the goals of reducing emissions towards becoming Net Zero.