Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate change
• Diversity, Equity, and Inclusion (DEI)
• Corporate Governance
• Antimicrobial Resistance (AMR)

Environmental Achievements

• Refurbished Southgate office to reduce energy footprint (installation of better insulation, efficient heating/cooling, LED lighting, water-saving fixtures)
• API manufacturer developed industry-leading wastewater treatment system

Social Achievements

• Achieved Fair Tax Mark accreditation
• Developed and implemented new personnel training process
• Expanded pharmacovigilance training globally
• Appointed a female Non-Executive Director (Tracey James) to the Board

Governance Achievements

• Published inaugural ESG report
• Continued enhancements to corporate governance
• Appointment of new CEO (David Hallas)

Climate Goals & Targets

Environmental Challenges

• Reduced revenue from China due to low pork prices
• Supply chain disruptions and post-Brexit importation difficulties in Europe
• COVID-19 related restrictions on free movement and travel
• Increasing energy costs and inflationary pressures

Mitigation Strategies

• Adopted a hybrid working model
• Developed alternative sourcing strategies
• Closely monitoring costs
• Focused program of new product development
• Established a £10m revolving credit facility

Supply Chain Management

Supplier Audits: Minimum of every three years

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

UN Sustainable Development Goals

• Goal 2: Zero Hunger
• Goal 3: Good Health and Well-being
• Goal 8: Decent Work and Economic Growth
• Goal 13: Climate Action

ECO's products contribute to food security, animal health, and sustainable livelihoods; the company is committed to reducing its environmental impact.

Sustainable Products & Innovation

• Aivlosin (novel antimicrobial)
• Vaccines and other biologicals in R&D pipeline

Awards & Recognition

• Fair Tax Mark

Environmental Metrics

ESG Focus Areas

• Environment
• Diversity, Equity, and Inclusion (DEI)
• Emissions

Environmental Achievements

• Major improvements to recycling of food and non-perishable waste in the UK Southgate office, elimination of single-use plastics, use of recycled consumables, LED lights, and smart meter installation.
• Addition of two electric cars to the UK car fleet (8% of fleet electric).
• Almost 30% reduction in energy consumption per RMB turnover by ECO’s Chinese joint venture from 2020-2022, with a further 9% reduction from 2021-2022 and a target of 3% reduction in 2023.

Social Achievements

• First ECO Employee Engagement Survey conducted, with 78% of respondents agreeing or strongly agreeing that ECO is a good place to work.
• Increased ratio of women:men on the Board and ELT.
• Commitment to supporting an Employee Engagement Group for Women and to improve gender diversity.

Governance Achievements

• Expanded ESG reporting to include further information on diversity and emissions.
• Strengthened Board makeup to increase its capability.
• Implemented robust systems and controls to mitigate fraud and depletion of company funds.

Climate Goals & Targets

Environmental Challenges

• High reliance on one supplier for key products.
• Reliance placed on key directors, senior managers, and staff members.
• High dependency on a single product (Aivlosin).
• Potential threat from generic producers.
• Disease impact on growth (African Swine Fever, Avian influenza).
• Multiple new product launches in a single year and quality risk regarding new biologicals manufacturing.
• Regulatory creep resulting in certain formulations not being sold in certain markets.
• Political risk (e.g., Russia/Ukraine conflict) impacts markets through sanctions or trade difficulties.
• Political risk – conflict or sanctions reduces supply of pig feed onto world markets which reduces customer margins and demand for the Group’s products.
• Operational activities resulting in environmental pollution.
• Failure to achieve/maintain Good Manufacturing Practice and quality standards leading to supply interruption.
• Risk of trial failure impeding registration and approval of Pipeline products.
• Risk that new products are not as commercially successful as predicted.
• Continuity of IT services.
• Risk of business interruption due to fire, flood, explosion, natural disaster.
• Risk of corporate manslaughter.
• Seasonal and un-forecast demand impact on supply chain responsiveness.
• Fraud and depletion of company funds.
• Cyber attack.
• Insufficient funding for business growth.
• Currency fluctuations.
• Interest rate risk.
• International bank sanctions leading to cross-border banking transaction failure.
• Recession in major regions of the world leading to reduced demand for the Group’s products.

Mitigation Strategies

• Business interruption insurance, strategic safety stock, product diversification initiatives.
• Succession planning, new RemCom policies, employee training.
• Innovation fund, development pipeline of new products, generic defence strategy.
• Global organisation driving strategy in other geographical territories, strategy to increase focus on poultry.
• Recruitment of additional resource, planning and preparation with external partners.
• Proactive approach to regulatory change.
• Monitoring of customer profitability, market demands.
• Virtual supply chain, use of third parties, internal and external audits of third party facilities, staff training.
• Regular competent authority inspections, independent and internal QA function, audits of third party facilities.
• High calibre staff recruited, use of reputable laboratories and subcontractors, regular replenishment of R&D pipeline.
• Commercially trained staff, accurate trials, marketing department monitoring market developments.
• Retained IT consultancy, cloud-based servers, active monitoring, laptop encryption.
• Business risk insurance cover, business continuity plan, cloud-based servers, remote working capability, safety stocks.
• Adequate health and safety procedures and insurances.
• Forecasting Project: Implementation of MRP, monthly Regional S&OP meetings, increased manufacturing capacity in USA, strategic review of lead times/responsiveness.
• Enhanced corporate governance, robust systems and controls, minimum international cash balances, daily/weekly monitoring of bank accounts.
• Strong firewalls, regular data backup, continual review and strengthening of controls and security, cyber security assessments/audits, mandatory training.
• Cashflow and working capital management, close monthly monitoring of budget, RCF facility.
• Monitoring of exchange rates, operational transactions in multiple currencies, natural hedges, use of SWAPS.
• Monitoring of international sanctions, use of stable banks, tight credit control.
• Strengthening relationships with key customers and suppliers, brand awareness, premium positioning of product, annual fixing of primary input costs.

Supply Chain Management

Responsible Procurement

• Audits of third party facilities

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: QCA Corporate Governance Code

UN Sustainable Development Goals

• No Poverty
• Zero Hunger
• Good Health and Well-being
• Gender Equality
• Decent Work and Economic Growth
• Responsible Consumption and Production

ECO's focus on economically important diseases, improving animal health, providing safe workplaces, supporting charities, and promoting gender equality.