Climate Change Data

Viatris Inc.

Climate Impact & Sustainability Data (2021, 2022, 2023)

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:770.9 thousand metric tons CO2e
Scope 1 Emissions:355.0 thousand metric tons CO2e
Scope 2 Emissions:415.8 thousand metric tons CO2e
Scope 3 Emissions:Not disclosed
Renewable Energy Share:Not disclosed
Total Energy Consumption:1875 GWh
Water Consumption:3866 thousand m3
Waste Generated:80.93 thousand metric tons
Carbon Intensity:43 metric tons CO2e/million USD revenue

ESG Focus Areas

  • Sustainable Access to Medicine
  • Patient Outcomes and Contribution to Global Public Health
  • Talent Management
  • Employee Engagement
  • Workplace Health and Safety
  • Diversity and Inclusion
  • Manufacturing and Distribution
  • Supply Chain
  • Regulatory Impact
  • Climate Change and Energy
  • Business Ethics

Environmental Achievements

  • Increased recycling at Vega Baja, Puerto Rico site from 913 tons in 2020 to 985 tons in 2021 (85% of waste recycled)
  • Recycled more than 2,400 mt of plastic waste across all India operations
  • 10% reduction in GHG emissions at Vega Baja, Puerto Rico site (~4,280 mt CO2e)
  • ~$500,000 saved on electricity costs at Vega Baja, Puerto Rico site in 2021 due to CHP system

Social Achievements

  • Launched Semglee® (insulin glargine-yfgn) injection, the first interchangeable biosimilar product in the U.S.
  • Expanded availability of Ogiviri® and Fulphilia® in South Africa, saving nearly $2 million USD
  • Supplied more than 30,000 units of trastuzumab to the Philippines Department of Health for their Breast Cancer Medicines Access Program (BCMAP)
  • Launched various mental health initiatives reaching 8 million people in 14 markets
  • 98% of Viatris India employees vaccinated for COVID-19

Governance Achievements

  • Established a solid foundation for future sustainability efforts, including company-wide goals in patient access, environment, and DE&I
  • Continued to support colleagues during global restructuring initiative, providing severance pay, healthcare continuation, and outplacement services
  • Implemented a common performance management process, with nearly 95% of employees completing evaluations
  • Achieved 97% completion rate for Code of Business Conduct and Ethics training

Climate Goals & Targets

Long-term Goals:
  • Net zero emissions (aspirational)
Medium-term Goals:
  • Reduce absolute Scope 1 and 2 GHG emissions by 42% by 2030
  • Reduce Scope 3 GHG emissions by 25% by 2030
  • Achieve a 50% increase in the number of zero landfill locations by 2030
  • Increase women’s representation in senior management globally to at least 35% by 2027
Short-term Goals:
  • Provide ARV therapy equivalent to 30 million patients (including >2 million children) by 2025
  • Impact 100 million patients via HCP education and outreach by 2025
  • Engage at least 90% of employees globally on DE&I learning by 2023
  • Perform water risk assessments for all locations in high/extremely high water risk areas by 2025

Environmental Challenges

  • Ongoing COVID-19 pandemic and its impact on global supply chains
  • Global health disparities and access to healthcare
  • Increasing effects of climate change
  • Drug shortages
  • Global restructuring initiative
Mitigation Strategies
  • Implemented social distancing measures, daily health assessments, and split shifts to protect employees
  • Upholding high customer service levels via a reliable supply chain
  • Developed a rapid response system to address supply chain disruptions
  • Established company-wide goals to address ESG challenges
  • Provided support to impacted employees during restructuring

Supply Chain Management

Supplier Audits: 612 GMP, 69 GCP, and 23 pharmacovigilance (PV) audits conducted in 2021

Responsible Procurement
  • Supplier Code of Conduct
  • EHS, labor, and ethics assessments
  • Sustainability risk assessments based on PSCI principles

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events
Transition Risks
  • Regulatory changes
  • Market shifts
Opportunities
  • Increased use of renewable energy
  • Energy efficiency projects

Reporting Standards

Frameworks Used: GRI Standards: Core level, SASB standards for Biotechnology & Pharmaceuticals, TCFD, UNGC

Certifications: ISO 14001, ISO 45001, ISO 50001, British Safety Council 5-star rating (four sites in India)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • SDG 3 (Good Health and Well-being)
  • SDG 5 (Gender Equality)
  • SDG 6 (Clean Water and Sanitation)
  • SDG 8 (Decent Work and Economic Growth)
  • SDG 10 (Reduced Inequalities)
  • SDG 12 (Responsible Consumption and Production)
  • SDG 13 (Climate Action)
  • SDG 17 (Partnerships for the Goals)

Viatris' initiatives contribute to these goals through access to medicine, sustainable operations, community engagement, and employee well-being programs

Sustainable Products & Innovation

  • Semglee® (interchangeable biosimilar)
  • CB12 mouthwash bottles made from 100% recycled plastic

Awards & Recognition

  • Fortune’s Change the World list
  • Newsweek’s America’s Most Responsible Companies list
  • Forbes’ World’s Best Employers list

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:727 thousand metric tons CO2e
Scope 1 Emissions:333.3 thousand metric tons CO2e
Scope 2 Emissions:393.8 thousand metric tons CO2e
Scope 3 Emissions:44.7 thousand metric tons CO2e
Renewable Energy Share:5.0% (On-Site Renewable Electricity Gen)
Total Energy Consumption:1,921.5 GWh
Water Consumption:3,639 thousand m3
Waste Generated:80.57 thousand metric tons
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Access and Global Health
  • Diversity, Equity and Inclusion (DEI)
  • Environment

Environmental Achievements

  • Science Based Target initiative (SBTi) independently assessed and approved near-term science-based greenhouse gas emissions reduction targets to cut scope 1 and 2 emissions by 42% by 2030 and scope 3 emissions by 25% by 2030.
  • Reduced water withdrawal by almost 7% in 2022.
  • Sent 35,700 metric tons of waste to waste-to-energy facilities for use as an alternative fuel source; 75% of this came from our API facilities located in India.

Social Achievements

  • 89% participation in Viatris’ first-ever Voice Survey.
  • Donated more than 450 million doses of medicines for humanitarian needs through our partners around the world.
  • Donated a total of $1 million to aid in supporting access to healthcare, food security and water stewardship in communities around the world.

Governance Achievements

  • Viatris’ Board of Directors oversees management’s efforts with respect to corporate environmental and social responsibility matters through its Risk Oversight Committee.
  • Established Viatris’ Supplier Code of Conduct.
  • Enhanced compliance training modules covering Anti-Corruption, Fair Competition and the Code of Business Conduct and Ethics.

Climate Goals & Targets

Long-term Goals:
  • Reduce absolute scope 1 and 2 GHG emissions 42% by 2030 from a 2020 base year.
  • Reduce absolute scope 3 GHG emissions by 25% by 2030 from a 2020 base year.
Medium-term Goals:
  • Increase women’s representation in senior management globally to at least 35% by the end of 2027.
  • At least double Black representation in all management levels in the U.S. by the end of 2027.
  • At least double Hispanic/Latinx representation in senior management in the U.S. by the end of 2027.
  • Achieve a 50% increase in the number of zero landfill locations by 2030.
Short-term Goals:
  • Provide ARV therapy equivalent to a total of 30 million patients, including more than 2 million children living with HIV/AIDS, between 2022 and the end of 2025.
  • Engage at least 90% of employees globally on diversity, equity and inclusion (DEI) learning by the end of 2023.
  • Impact 100 million patients via healthcare professional (HCP) education and outreach by the end of 2025.

Environmental Challenges

  • COVID-19 pandemic impacts on healthcare systems and access.
  • Global inflation and economic uncertainty.
  • War in Ukraine creating urgent needs and supply chain disruptions.
  • Antimicrobial resistance (AMR).
Mitigation Strategies
  • Provided widespread and cost-efficient access to remdesivir and molnupiravir.
  • Maintained adequate stocks of needed medicines.
  • Provided cost-of-living payment to more than 10,000 colleagues.
  • Participated in AMR Industry Alliance (AMRIA) initiatives.
  • Implemented AMRIA Common Antibiotic Manufacturing Standard.

Supply Chain Management

Supplier Audits: 777 GMP audits, 69 GCP audits, 13 pharmacovigilance (PV) audits

Responsible Procurement
  • Supplier Code of Conduct
  • PSCI principles
  • Sustainable sourcing practices

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events
Transition Risks
  • Regulatory changes
  • Market shifts
Opportunities
  • Increased use of renewable energy
  • Energy efficiency projects

Reporting Standards

Frameworks Used: GRI Standards, SASB standards for Biotechnology & Pharmaceuticals, TCFD, UNGC

Certifications: ISO 14001, ISO 45001, ISO 50001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Goal 3 (Good Health and Well-being)
  • Goal 6 (Clean Water and Sanitation)
  • Goal 8 (Decent Work and Economic Growth)
  • Goal 12 (Responsible Consumption and Production)
  • Goal 13 (Climate Action)
  • Goal 17 (Partnerships for the Goals)

Initiatives contributing to SDGs described throughout the report.

Sustainable Products & Innovation

  • Not disclosed

Awards & Recognition

  • Forbes’ World’s Best Employers
  • Top Employer Institute awards
  • Great Place to Work™
  • Heart to Heart International’s Gary B. Morsch Humanitarian Award

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:751.6 thousand metric tons CO2e
Scope 1 Emissions:335.6 thousand metric tons CO2e
Scope 2 Emissions:416.1 thousand metric tons CO2e
Scope 3 Emissions:Not disclosed
Renewable Energy Share:Not disclosed
Total Energy Consumption:1,956.5 GWh
Water Consumption:3,731 thousand m3
Waste Generated:85.5 thousand metric tons
Carbon Intensity:0.127 GWh/million USD revenue

ESG Focus Areas

  • Access and Global Health
  • Our People
  • Environment
  • Community
  • Governance and Ethical Practices

Environmental Achievements

  • Named to USA Today’s inaugural list of America’s Climate Leaders 2023 for companies that have demonstrated the greatest reduction in emissions intensity
  • 3.7% reduction of scope 1 and 2 emissions compared to 2020 baseline
  • Thirteen sites achieved zero-waste landfill status in 2023

Social Achievements

  • Supplied high-quality medicines to approximately 1 billion patients around the world
  • More than 24,000 individuals have an NCD Academy account, representing approximately 60.5 million patients impacted to date.
  • 97% of colleagues participated in DEI learning by the end of 2023
  • Launched Viatris’ global wellbeing program for all colleagues

Governance Achievements

  • Viatris is a signatory to the United Nations Global Compact (UNGC)
  • The Global Sustainability function operates as a center of excellence within the Corporate Affairs leadership team.
  • Completed our second full cycle of talent review and succession planning

Climate Goals & Targets

Long-term Goals:
  • Reduce absolute scope 1 and 2 GHG emissions 42% by 2030
  • Reduce absolute scope 3 GHG emissions by 25% by 2030
Medium-term Goals:
  • Achieve a 50% increase in the number of zero landfill locations by 2030
Short-term Goals:
  • Provide antiretroviral (ARV) therapy equivalent to a total of 30 million patients, including more than 2 million children living with HIV/AIDS, between 2022 and the end of 2025
  • Impact 100 million patients via HCP education and outreach by the end of 2025
  • Perform water risk assessments for all locations in high or extremely high water stress areas by 2025

Environmental Challenges

  • Growing impact of climate change on the environment and human health
  • Global progress on SDGs is going slow, has stalled or in some areas reversed across many of the goal areas.
  • Growing gap in supply and demand for healthcare workers
  • Continued emergence of antimicrobial resistance (AMR)
Mitigation Strategies
  • Implementing technologies, processes and systems to minimize environmental impact
  • Investing in and engaging in HCP outreach and education
  • Launched Elevate, our new wellbeing program for all colleagues
  • Working with partners across regions to strengthen mental health outreach and care
  • Compliance with AMRIA’s Antibiotic Manufacturing Standard

Supply Chain Management

Supplier Audits: 30 supplier assessments completed since 2022

Responsible Procurement
  • Viatris’ Supplier Code of Conduct
  • PSCI principles

Climate-Related Risks & Opportunities

Physical Risks
  • Hurricanes
  • Extreme heat
  • Flooding
Transition Risks
  • Regulatory changes
  • Market shifts
Opportunities
  • Increasing renewable energy usage
  • Implementing energy-efficiency projects

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UNGC

Certifications: ISO 14001, ISO 50001, ISO 45001

Third-party Assurance: Third-party assurance for GHG emissions data in progress; 2022 CDP Climate Change and Water Security Programs were verified by an external party

UN Sustainable Development Goals

  • 3
  • 4
  • 5
  • 6
  • 7
  • 12
  • 13
  • 17

Viatris' initiatives contribute to these goals through its work in access to medicine, healthcare worker empowerment, environmental stewardship, community engagement, and responsible business practices.

Sustainable Products & Innovation

  • Breyna™ Inhalation Aerosol

Awards & Recognition

  • TIME’s World’s Best Companies 2023
  • Forbes List of World’s Best Employers 2023
  • USA Today’s America Climate Leader list 2023