Heidelberg Pharma AG

Climate Impact & Sustainability Data (2019, 2019-12-01 to 2020-11-30, 2020-12 to 2021-11, 2022, 2022-12 to 2023-11)

Reporting Period: 2019

Environmental Metrics

Social Achievements

69% of the workforce are women; 20% of employees work part-time.

Governance Achievements

Implemented recommendations of the German Corporate Governance Code (GCGC).

Climate Goals & Targets

Medium-term Goals:

Identify additional development candidates and transfer them to the development stage.

Short-term Goals:

Complete preclinical programs for HDP-101 in 2020 and submit application for first clinical trial.

Environmental Challenges

Significant delays in the development of HDP-101 due to unexpected challenges with pharmaceutical formulation.
The need for external financing to support ongoing research activities.

Mitigation Strategies

Redesigned the formulation of HDP-101.
Secured a €15 million financing commitment from dievini.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: IFRS

Third-party Assurance: Deloitte GmbH Wirtschaftsprüfungsgesellschaft

Reporting Period: 2019-12-01 to 2020-11-30

Environmental Metrics

Social Achievements

66% of employees are women.
No COVID-19 infections reported among employees.

Governance Achievements

Implemented recommendations of the German Corporate Governance Code (GCGC).

Climate Goals & Targets

Environmental Challenges

COVID-19 pandemic caused delays in some research collaborations and clinical trials.
High research and development costs exceeding income.

Mitigation Strategies

Implemented work-from-home policy and rolling teams to mitigate COVID-19 risks.
Secured financing commitments from main shareholder dievini.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: IFRS

Third-party Assurance: Deloitte GmbH Wirtschaftsprüfungsgesellschaft

Reporting Period: 2020-12 to 2021-11

Environmental Metrics

Social Achievements

Increased employee headcount by more than 14% to 96 employees.

Governance Achievements

Implemented recommendations of the German Corporate Governance Code (GCGC).

Climate Goals & Targets

Medium-term Goals:

Achieve clinical proof of concept for ATAC® technology and pipeline candidates.

Short-term Goals:

Submit applications to initiate clinical trials with HDP-102 and HDP-103 in early 2023.

Environmental Challenges

Repeated waves of the pandemic strained hospital resources, delaying clinical trial site selection and onboarding.
Supply bottlenecks for certain raw materials and fewer staff available at clinical centers.
Communication difficulties with trial centers during clinical trials.
Deferral of planned milestone payments by various partners and smaller deliveries of Amanitin linkers.

Mitigation Strategies

Selected suitable trial centers, obtained necessary permits, and arranged for production of the trial drug.
Successfully completed compatibility tests for closed infusion system.
Established a hybrid format for conventions and conferences to maintain interaction with the scientific community and investors.
Secured a financing commitment of €36 million from main shareholder dievini in February 2022.
Signed a licensing agreement and strategic partnership with Huadong Medicine Co., Ltd. in February 2022.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: IFRS

Third-party Assurance: Deloitte GmbH Wirtschaftsprüfungsgesellschaft

Reporting Period: 2022

Environmental Metrics

ESG Focus Areas

Diversity
Corporate Governance
Sustainability

Governance Achievements

Compliance with most recommendations of the German Corporate Governance Kodex (DCGK)

Climate Goals & Targets

Medium-term Goals:

Increase women's representation in the Supervisory Board to at least 28% by December 31, 2027.

Environmental Challenges

Limited personnel capacity resulting in delayed publication of financial reports beyond the DCGK recommended timeframe.

Mitigation Strategies

Reports were published within the legally mandated timeframe despite not meeting the DCGK's recommended deadlines.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: German Corporate Governance Kodex (DCGK)

Reporting Period: 2022-12 to 2023-11

Environmental Metrics

Governance Achievements

Implemented recommendations and suggestions of the German Corporate Governance Code (GCGC).

Climate Goals & Targets

Long-term Goals:

Become a leading global player in ADC technology.

Medium-term Goals:

Expand the portfolio with additional ADC candidates.
Achieve clinical proof of concept for pipeline projects.

Short-term Goals:

Complete data package for submission of HDP-102 clinical trial application.

Environmental Challenges

Reduced availability of materials due to macroeconomic factors.
Interest rate and price increases for products and services.
Events at former partner Magenta Therapeutics, leading to a review of trial processes and safety measures.
Setbacks in clinical development and uncertainty regarding market maturity of ATAC technology.

Mitigation Strategies

Additional investigations to rule out similar events or detect them at an early stage.
Modifications to the HDP-101 study protocol.
Opening additional trial centers to speed up recruitment.
Development of additional research candidates with different modes of action.
Expansion of the technology base to include complementary technologies.
Careful liquidity planning and budgeting, cost-cutting measures, and restructuring considerations.
Strengthening ties with banks and investors.