Climate Change Data

H. Lundbeck A/S

Climate Impact & Sustainability Data (2020, 2022, 2023)

Reporting Period: 2020

Environmental Metrics

Total Carbon Emissions:14,751 tCO2e
Total Energy Consumption:100,724 MWh
Water Consumption:238,008 m3
Waste Generated:15,025 tons

ESG Focus Areas

  • Global health and wellbeing
  • Climate action and circularity
  • Business ethics
  • Inclusive and safe working conditions

Environmental Achievements

  • Reduced CO2 emissions by 14% compared to 2019
  • Recycled 68% of solvents
  • Obtained approval for a new science-based climate target

Social Achievements

  • Launched a product donation partnership with IHP
  • Maintained an overall equal gender split for people managers globally
  • Engaged all Lundbeck offices in local World Mental Health Day activities

Governance Achievements

  • Annual Code of Conduct training completed by all employees
  • Disclosed the value of 26,729 interactions with healthcare professionals

Climate Goals & Targets

Long-term Goals:
  • Reduce total carbon footprint in line with Science-Based Target
  • Donate treatment for at least 900 patients through product donation partnerships
Medium-term Goals:
  • Build an inclusive organization focusing on unconscious bias
  • Maintain equal gender split for people managers
  • Reduce lost time accident frequency ≤ 5
Short-term Goals:
  • Recycle 60% of solvents
  • Recycle 62% of general waste
  • Ensure all disease awareness sponsorships support suicide prevention or mental health awareness

Environmental Challenges

  • Two environmental incidents with an impact on the environment
  • Lost time accident frequency of 5.5 (target was below 5)
  • Lower than target percentage of healthcare professionals supporting disclosure of collaborations
Mitigation Strategies
  • Thorough root cause analysis of environmental incidents to prevent repetition
  • Preventive actions to reduce accident frequency
  • Development of a data model and identification of gaps to improve disclosure of collaborations

Supply Chain Management

Supplier Audits: 100 due diligences conducted in 2020

Responsible Procurement
  • Human rights and environmental due diligence prior to engagement; ongoing monitoring; contractual obligations to adhere to local and international standards; adoption of sections of Lundbeck’s Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events affecting sites, partners, and suppliers
Opportunities
  • Maintaining a strong and resilient supply chain and production

Reporting Standards

Frameworks Used: UN Global Compact, SASB Materiality Map® for Biotechnology & Pharmaceuticals, TCFD

Certifications: ISO 14001:2015, OHSAS 18001 (replaced with ISO 45001 in 2020)

Third-party Assurance: PwC

UN Sustainable Development Goals

  • SDG 3: Good Health and Well-being
  • SDG 10: Reduced Inequalities
  • SDG 13: Climate Action

Lundbeck's sustainability strategy aims to mitigate risks and adverse impacts related to business activities and contribute to solving societal challenges related to these SDGs.

Awards & Recognition

  • Ranked #4 globally on Net Promoter Score
  • CDP’s A List

Reporting Period: 2022

Environmental Metrics

Scope 1 Emissions:22.918 tCO2e/year
Scope 2 Emissions:4.255 tCO2e/year
Scope 3 Emissions:102.610 tCO2e/year
Renewable Energy Share:66% of total energy use
Total Energy Consumption:104.004 MWh/year
Water Consumption:219.159 m3/year
Waste Generated:16.027 tons/year

ESG Focus Areas

  • Access to Brain Health
  • Business Ethics
  • Climate Change & Circularity
  • People & Communities

Environmental Achievements

  • 29% reduction in scope 1 & 2 carbon emissions vs. 2019 SBTi target baseline
  • 3% estimated reduction in scope 3 carbon emissions vs. 2019 SBTi target baseline
  • 65% recovery of organic compounds used in chemical production
  • Achieved an "A" score by the Climate Disclosure Project (CDP) for the 8th consecutive year.

Social Achievements

  • Launched neurodiverse workplace commitment
  • Increased share of women among all people managers from 42.6% in 2021 to 43.1% in 2022
  • Increased share of underrepresented gender at senior management level from 31.5% to 33.8%
  • Donated medication estimated to help at least 4,000 people through charitable clinics

Governance Achievements

  • 98.6% employees completed the annual e-learning on the Code of Conduct
  • Strengthened fraud management
  • Updated Guideline on Interactions with Healthcare Professionals

Climate Goals & Targets

Long-term Goals:
  • Reach net zero emissions no later than 2050
  • Promote business ethics, including human and labor rights
  • Demonstrate that the Code of Conduct compliance program works
  • Protect the integrity of the healthcare professionals we work with
  • Leverage our specialist knowledge to address the burden of brain diseases
  • Improve mental health parity, reduce stigma
Medium-term Goals:
  • Reduce scope 1 and 2 CO2e emissions by 65% in 2034 compared to 2019
  • Reduce a share of scope 3 CO2e emissions by 40% in 2034 compared to 2019
  • Establish manufacturing processes based on circular economy principles
  • Be recognized by employees and externally as a workplace with an inclusive culture
  • Be recognized as a workplace that fosters physical and mental wellbeing
Short-term Goals:
  • Scoping a global approach to measuring the impact of and access to medical education of health care professionals
  • Ensure all disease awareness sponsorships measurably support brain health
  • Donate treatment for at least 1,500 patients in low- and middle-income countries
  • Reduce lost time accident frequency ≤ 4
  • Reduce total carbon footprint across own operations, supply, and distribution in line with our 15-year near-term Science-Based Target
  • Recycle 73% of general waste
  • Increase in share of underrepresented gender at senior management level year on year

Environmental Challenges

  • Limited availability of certified bio-oil at an acceptable price point
  • Increased emissions from clinical trial management and other service-related purchasing
  • Did not meet two of 11 sustainability targets for the year (general waste recycling and lost time accident frequency)
Mitigation Strategies
  • Exploring possibilities for converting use of fossil-based gas to electricity or renewable fuels
  • Improved emissions estimation model and raised near-term target for scope 3 emissions
  • Increased collaboration with suppliers to reduce emissions and receive emissions data
  • Implemented a new cloud-based health and safety management system
  • Revised accident prevention plan for 2023

Supply Chain Management

Supplier Audits: 129 due diligence screenings of third parties and suppliers in 2022; audits of raw material suppliers for commercial production and Contract Manufacturing Organizations

Responsible Procurement
  • Human rights and environmental due diligence screening prior to engagement
  • Contractual obligation for third parties to adhere to local and internationally recognized anti-corruption, labor rights, human rights, and environmental standards
  • Adoption of Third Party Obligations for critical collaboration partners and suppliers

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events affecting sites, partners, and suppliers
Transition Risks
  • Regulatory changes, market shifts
Opportunities
  • Maintaining resilient production
  • Becoming highly energy efficient
  • Increasing use of renewable energy

Reporting Standards

Frameworks Used: UN Global Compact, Science Based Targets initiative (SBTi), Greenhouse Gas Protocol, Taskforce on Climate-related Financial Disclosures (TCFD), EU Taxonomy, EU Directives related to corporate sustainability conduct and reporting, IFPMA, EFPIA, JPMA, and PhRMA joint position paper “Disclosure of Clinical Trial Information via Clinical Trial Registries and Databases”

Certifications: ISO 14001, ISO 45001

Third-party Assurance: PricewaterhouseCoopers

UN Sustainable Development Goals

  • Goal 3: Good Health and Well-being
  • Goal 8: Decent Work and Economic Growth
  • Goal 9: Industry, Innovation and Infrastructure
  • Goal 12: Responsible Consumption and Production
  • Goal 13: Climate Action

Lundbeck’s sustainability activities aim to mitigate material risks and adverse impacts related to our business activities and to contribute to solving societal challenges where we can. We remain committed to the UN Global Compact Principles and contribute to addressing seven of the UN Sustainable Development Goals.

Awards & Recognition

  • CDP Leadership score (8 consecutive years)

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:144657 tCO2e/year (Scope 1+2+3)
Scope 1 Emissions:21,357 tCO2e/year
Scope 2 Emissions:3,934 tCO2e/year
Scope 3 Emissions:119,336 tCO2e/year
Renewable Energy Share:71% (electricity)
Total Energy Consumption:107,477 MWh/year
Water Consumption:229,874 m3/year
Waste Generated:16,694 tons/year
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Access to Health
  • Business Ethics
  • Climate Change & Circularity
  • People & Communities

Environmental Achievements

  • Reduced scope 1 & 2 carbon emissions by 34% vs. 2019 SBTi target baseline
  • Recycled 75% of general waste
  • 61 suppliers signed new contractual commitments to use renewable electricity

Social Achievements

  • Increased share of women in senior management to 35.9%
  • Reduced lost time accident frequency to 2.8 per one million working hours
  • Donated medication estimated to help 3,325 patients through charitable clinics

Governance Achievements

  • 99.9% of employees completed annual Code of Conduct training
  • 227 due diligence screenings of third parties and suppliers conducted

Climate Goals & Targets

Long-term Goals:
  • Deliver on the "Business Ambition for 1.5°C" pledge
  • Establish manufacturing processes based on circular economy principles to limit materials use, waste, and carbon emissions by 2030
Medium-term Goals:
  • Manage two-thirds of value chain carbon emissions as effectively as emissions from operations by 2030
  • Achieve a lost time accident frequency below 3 by 2030
Short-term Goals:
  • Achieve 65% renewable electricity in all EU sites by 2025
  • Launch global platform for medical education

Environmental Challenges

  • Increased scope 3 carbon emissions (8% higher than 2019 baseline due to business growth)
  • Lower than expected organic compounds recovery ratio in the first half of 2023 due to test production
  • PFAS pollution detected at Lumsås production facility
Mitigation Strategies
  • Implementing a new travel policy to reduce travel-related emissions
  • Establishing a new Solvent Recovery Unit to improve organic compounds recovery
  • Engaging in dialogue with the Danish Environmental Protection Agency regarding PFAS remediation

Supply Chain Management

Supplier Audits: 26 external animal welfare audits; on-site audits of chemical suppliers

Responsible Procurement
  • Human rights and environmental due diligence screening of suppliers
  • Contractual requirements for adherence to UN Global Compact principles and Lundbeck’s Third Party Obligations

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events affecting sites, partners, and suppliers
Transition Risks
  • Regulatory changes, market shifts
Opportunities
  • Maintaining resilient production, becoming highly energy efficient, increasing renewable energy use

Reporting Standards

Frameworks Used: UN Global Compact, EU Taxonomy Regulation, Science Based Targets initiative (SBTi), TCFD

Certifications: ISO 14001, ISO 45001

Third-party Assurance: PricewaterhouseCoopers

UN Sustainable Development Goals

  • Goal 3: Good Health and Well-being
  • Goal 8: Decent Work and Economic Growth
  • Goal 9: Industry, Innovation and Infrastructure
  • Goal 13: Climate Action

Lundbeck's initiatives contribute to these goals through its focus on neuroscience, ethical business practices, climate action, and inclusive workplace culture.

Sustainable Products & Innovation

  • Not disclosed

Awards & Recognition

  • Not disclosed