How Eisai and EYSC Are Revolutionizing Human Capital Disclosure Strategies

The Transformation of Human Capital Disclosure at Eisai

Eisai Co., Ltd., a pharmaceutical company based in Bunkyo, Tokyo, has joined forces with EY Strategy and Consulting (EYSC) to enhance its approach to human capital management. This strategic collaboration aims to effectively disclose human capital issues and insights, leading to improved HR initiatives and sound business decisions. Over the past three years, EYSC has provided continued support, guiding Eisai from conceptualization to execution and enhancing their ongoing strategies.

Background: Bridging the Gap in Human Capital Understanding

In July 2023, Eisai published its inaugural Human Capital Report, signifying a pivotal step in organizing and disclosing its views on human capital. The report goes beyond mere information sharing; it serves as a foundational tool for analyzing internal challenges and determining actionable steps forward. Eisai has recognized the need to enhance transparency in communicating its corporate philosophy and operations. While their efforts have been commendable, there was a clear deficiency in the dissemination of human capital information to both internal and external stakeholders.

By systematically organizing and disclosing their human capital status and strategies, Eisai aims to foster deeper dialogues with stakeholders and align these discussions with actionable results. The Human Capital Report has become a vital instrument in this process.

EYSC's Support in Establishing a Continuous Improvement Cycle

EYSC played a crucial role in structuring the disclosure policies and overall composition of the Human Capital Report. They assisted Eisai in designing and analyzing key performance indicators (KPIs), enabling the company to assess gaps between their current state and desired outcomes. Furthermore, EYSC provided strategic advice for subsequent HR initiatives based on the report's findings.

In the 2023 edition, Eisai committed to openly addressing not only their strengths but also the challenges and weaknesses they face. This transparency was intended to inform their future strategic decisions. Following the release of the Human Capital Report, Eisai has actively incorporated feedback from employees and external stakeholders to reassess their internal initiatives annually. Starting in 2024, the company plans to shift focus towards employee-centric information disclosure, leveraging unique metrics like the Eisai Human Capital Index (E-HCI) and conducting pulse surveys for continuous improvement.

These approaches have yielded positive developments, such as heightened awareness among employees, clearly defined priorities for HR initiatives, and broadened dialogues with external evaluators. This evolving cycle underscores how disclosures related to human capital are being integrated into future strategies and actions.

EYSC’s partnership has enabled Eisai to link human capital disclosures with subsequent initiatives and decision-making processes, fostering sustained value creation for the company.

Insights from EYSC’s People Consulting Partner

Akihiro Mizuno, a partner at EYSC's People Consulting division, remarked: "Since the mandatory disclosure of human capital information began in 2023, EYSC has been dedicated to supporting Eisai in developing their Human Capital Report over three years. Eisai's innovative approach to utilizing disclosures as a catalyst for advancing human capital management exemplifies best practices that are garnering attention across industries. Moreover, it is gaining recognition as a leading initiative in Japan's human capital management landscape. We aspire to continue contributing to the advancement of human capital management strategies and business transformations in Japanese companies."

For more insights, visit the official EY Japan website and explore the cutting-edge human capital management practices pioneered by Eisai and EYSC in their Human Capital Report.

About EY

EY is dedicated to creating new value for clients, its members, society, and the planet, while building trust in the capital markets to foster a better world. Through the use of data, AI, and advanced technologies, EY's teams support clients in confidently navigating their futures, developing solutions for pressing current and future challenges. Operating in assurance, consulting, tax, strategy, and transaction services, EY leverages industry knowledge and a diverse array of global networks to deliver services in over 150 countries.

Conclusion

Eisai's collaboration with EYSC marks a transformative milestone in human capital management which is set to foster sustainable growth and adaptation in an ever-changing business landscape. As they continue to refine their approach, this initiative stands as a testament to the importance of transparency and proactive engagement in cultivating a company's human capital resources.