Climate Change Data

Environmental Metrics

ESG Focus Areas

• Quality Education
• Decent Work and Economic Growth
• Responsible Consumption and Production

Environmental Achievements

• Reduced refrigerant gas losses by 47% in Londrina.
• 29.6% of energy used at Zagreb site generated by solar power.
• 21% of waste classified as hazardous (aiming for zero landfill).
• Reduced plastic use by 3,000kgs/year (cat food) and projected further reduction of 18,000kgs/year (dog food).

Social Achievements

• Launched a new version of Delta e-learning platform, resulting in a 200% surge in usage.
• Implemented a progressive leadership development program for DPM&S.
• Addressed inadequate rest facilities and parking in Brazilian business.
• Reduced gender pay median gap from 17.7% in 2017 to 7.4% in 2019.
• Introduced a new Dignity at Work policy.
• Reduced Lost Time Accident Frequency Rate (LTAFR) from 0.21 to 0.17.

Governance Achievements

• Updated Anti-Bribery and Anti-Corruption (ABC) policy and rolled out e-learning course.
• Approved a Human Rights Policy.
• Reviewed all policies underpinning internal Code of Conduct and created internal training program.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacted face-to-face training and community activities.
• Maintaining supply of vital products during the pandemic.

Mitigation Strategies

• Transitioned leadership development program to a digital platform.
• Postponed group-wide employee engagement survey.
• Developed a Volunteer Service Tool Kit.
• Implemented digital delivery solution for management training.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Third Party Code of Conduct (covering health, safety, environmental standards, workers' rights, ethical standards, anti-bribery and anti-corruption).

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: UN Sustainable Development Goals (SDGs), GHG Protocol Corporate Accounting and Reporting Standard, TCFD

Certifications: MSC, IFFO RS Standard, Friends of the Sea, FSC

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 4 (Quality Education)
• Goal 8 (Decent Work and Economic Growth)
• Goal 12 (Responsible Consumption and Production)

Dechra's activities impact ten of the 17 SDGs, with these three identified as material.

Sustainable Products & Innovation

• New organic diets in recyclable bags.

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Our People
• Our Environment
• Our Community
• Our Business

Environmental Achievements

• Proportion of waste to landfill or incinerated with no energy recovery reduced from 17% to 14%
• 31% of waste recycled or reused
• Zagreb uses 27.8% electricity from solar panels

Social Achievements

• Achieved Living Wage Employer status in January 2021
• Trust Index of 77% (8 percentage points above UK average)
• 92% of employees feel Dechra is a physically safe place to work
• 88% of employees are proud to tell others they work at Dechra
• Launched global employee wellbeing program branded 'THRIVE'
• Reduced Lost Time Accident Frequency Rate from 0.17 to 0.09
• Donated £381,524 in cash or products to charities

Governance Achievements

• Appointed Group Sustainability Director
• Implemented electronic Quality Management System (eQMS)
• Updated Code of Business Conduct
• Established Group Health Safety and Wellbeing Committee

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions
• Increased hazardous waste volumes (due to one-off disposals)
• Competitor product launches
• Pressure to reduce antimicrobial use
• Retention of senior managers
• Climate-related risks (severe weather, natural disasters)

Mitigation Strategies

• Improved supply chain processes
• Increased waste recovery, recycling, and reuse rates
• Lifecycle management strategies for key products
• Development of new products to minimize antimicrobial resistance concerns
• Succession planning for SET members
• Risk assessment for climate and natural disaster risks
• Development of a global HR platform

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Third Party Code of Conduct
• Quality audits
• Due diligence
• Sustainability assessment (planned)

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather patterns
• Natural disasters

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• More efficient modes of transport and use of materials
• Improvements in packaging
• Increased opportunities on sites with production of renewable energy

Reporting Standards

Frameworks Used: UN Sustainable Development Goals (SDGs), Science Based Targets initiative (SBTi), Taskforce for Climate-related Financial Disclosures (TCFD)

Certifications: ISO 50001 (Zagreb), Good Laboratory Practice (GLP) (Zagreb)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 8 (Decent Work and Economic Growth)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)
• Goal 15 (Life on Land)

Dechra's initiatives contribute to these goals through various environmental and social programs.

Sustainable Products & Innovation

• Organic pet food range in recyclable packaging

Awards & Recognition

• Best in Class for CPD (Dechra Academy)
• Croatian Employer of the Year for people with disabilities (Genera d.d.)
• Best Extra-Large Workplace, 2021 (GPTW)

Environmental Metrics

ESG Focus Areas

• Animal Health and Welfare
• Emissions
• Land & water and Biodiversity
• Wage Policy
• Human Rights
• Equality in the Workspace
• Community Involvement
• Philanthropic Activities

Environmental Achievements

• 13% reduction in GHG emissions intensity ratio
• Reduced waste sent to landfill from 7% to 5%
• 66% FSC paper & wood
• Water withdrawal across manufacturing reduced by 40% (excluding Med-Pharmex)

Social Achievements

• Retained UK accreditation and pay relative to OECD standards
• Reduced gender pay gap from 1.7% to 1.3%
• 3,147 hours of employee volunteer service
• £633,645 donated in cash or products

Governance Achievements

• Science based targets submitted to the SBTi
• Value chain sustainability assessment project remains on track

Climate Goals & Targets

Environmental Challenges

• Did not meet target to source 100% of internally procured paper & wood from FSC sources by June 2023 (achieved 66%)
• 17 Lost Time Accidents

Mitigation Strategies

• Expect to achieve 100% FSC paper & wood by June 2024
• Implementing B-Safe behavioural safety programme for leaders

Supply Chain Management

Responsible Procurement

• Fair trading terms
• Establish long term trading relationships
• Quality audits
• Due diligence
• Anti-Bribery and Anti-Corruption training
• Third party code of conduct
• Environmental questions in new third party onboarding tool

Climate-Related Risks & Opportunities

Physical Risks

• Increased frequency of extreme weather and climate-related natural disasters

Transition Risks

• Carbon pricing and future environmental taxation
• Supply-demand of renewable energy
• Change in raw material or sourcing cost

Opportunities

• Increase in demand for low carbon products

Reporting Standards

Frameworks Used: Science Based Targets initiative (SBTi), Taskforce on Nature-related Financial Disclosures (TNFD)

UN Sustainable Development Goals

• Good Health and Wellbeing
• Decent Work and Economic Growth
• Reduced Inequalities
• Climate Action
• Responsible Consumption and Production

Details provided in report

Sustainable Products & Innovation

• Tri-Solfen®
• Recyclable packaging for Specific® dry diets