Formycon AG
Climate Impact & Sustainability Data (2023)
Reporting Period: 2023
Environmental Metrics
ESG Focus Areas
- Access to medicines
- Climate change mitigation
- Climate change adaptation
- Circular economy
- Biodiversity and ecosystems
- Water
- Workers in the value chain
- Product safety and quality
- Responsible marketing
- Equal treatment and equal opportunities
- Training and skills development
- Working conditions
- Health and safety
- Corporate culture
- Compliance and integrity in business conduct
- Corruption and bribery
- Protection of whistleblowers
- Lobbying
- Management of relationships with suppliers
Social Achievements
- Launched "Formycon’s Road to Sustainability" initiative.
- Maintained a corporate culture that recognizes and promotes the strength of diversity.
- Implemented a "whistleblowing" tool.
- Offered training courses to all managers to improve their people management skills.
- Proactively supported the LGBTQIA+ community through new dedicated communication channels.
- Offered an employee referral program.
- Offered a range of attractive employee benefits, including a company-subsidized mental health program.
- Conducted an anonymous employee satisfaction survey.
Governance Achievements
- Implemented a Code of Conduct.
- Established a compliance management system.
Climate Goals & Targets
Long-term Goals:
- Become a leading and sustainably profitable pharmaceutical company.
Medium-term Goals:
- Achieve EBITDA and cash flow profitability.
- Independently develop biosimilar candidates to a more advanced stage in the value chain.
Short-term Goals:
- Achieve ISO 14001 and ISO 50001 certification by 2026.
- Reduce work-related injuries and illnesses to zero by 2027.
Environmental Challenges
- Rising consumer prices in Germany.
- Inflationary environment.
- Weak general economic environment and unfavorable structural conditions in Germany's chemical-pharmaceutical industry.
- High costs and unfavorable location factors in Germany.
- Increasingly strict regulations in Germany.
- Geopolitical risks (Russia-Ukraine conflict, Israel-Hamas war).
- Potential scarcity of resources or energy rationing.
- Competition in the biosimilars market.
- Potential delays in regulatory approval or denial of approval.
- Potential difficulties in recruiting patients for clinical trials or in the availability of production capacity, production components, or precursors.
Mitigation Strategies
- Making full use of the Inflation Compensation Premium for employees.
- Developing a climate strategy to minimize carbon footprint.
- Expanding environmental and energy management system and achieving ISO 14001 and ISO 50001 certification by 2026.
- Developing a Supplier Code of Conduct in 2024.
- Expanding training opportunities and integrating employee training metrics into management performance targets.
- Reducing work-related injuries and illnesses to zero and achieving ISO 45001 certification by 2027.
- Long-term sourcing strategy based upon strategic partners and transparent pricing.
- Implementing a health management system to mitigate the impact of staff absences resulting from illness.
- Conducting exhaustive patent searches and closely monitoring the relevant patent environment.
- Implementing staff motivation and retention initiatives, along with talent planning.
Supply Chain Management
Responsible Procurement
- Developing a Supplier Code of Conduct in 2024.
Climate-Related Risks & Opportunities
Reporting Standards
Frameworks Used: UN Global Compact
Certifications: Systematic Safety seal of quality
Sustainable Products & Innovation
- Biosimilars