Climate Change Data

Environmental Metrics

ESG Focus Areas

• Governance
• Diversity

Social Achievements

• 60% of the members of the Appointments and Compensation and Sustainability Committee were women in 2021, and in 2020, 62% of the Group’s average workforce were women, with 46% of women in executive positions.

Governance Achievements

• Approved the 2022 Action Plan with a view to improving the quality and efficiency of the operation of the Board and its Committees.
• Amendment to the Board of Directors Regulations approved on 29 July 2021 affected Articles 13 and 14, adapting the duties of the Audit Committee and the Appointments and Compensation and Sustainability Committee to the provisions of Law 5/2021.

Climate Goals & Targets

Environmental Challenges

• Regulatory Risk: Yondelis suffered price reductions in certain European countries, particularly in Italy, resulting in an adverse impact of approximately €3 million.
• Competition Risk: Three Yondelis competitors have been approved since the end of 2017.

Mitigation Strategies

• The Group makes its decisions and designs its business processes based on the development of innovative therapeutic products in areas where treatments are very limited.
• The Group carries out a detailed analysis of the prices at the beginning of the year, working with our suppliers in order to establish a closed price for the whole year.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• 60.6% of waste produced in 2022 was reused.
• Electric car chargers installed in 6% of parking spaces.
• 35.5% of the Group’s fleet in Spain consists of hybrid or electric vehicles.
• Submitted carbon footprint calculations and targets to the Science Based Targets Initiative (SBTI).

Social Achievements

• Average workforce increased by 7.5% (38 net new jobs).
• 61% women in the workforce.
• 98.8% indefinite contracts.
• Training hours per employee increased by 16%.
• Weighted wage gap improved by 39%.

Governance Achievements

• Created a Pharma Compliance Committee.
• Employees received on-site training in Data Protection and Antitrust matters.
• Online training given in the European Federation of Pharmaceutical Industries (EFPIA) Code.

Climate Goals & Targets

Environmental Challenges

• Launch of generic trabectedin impacted Yondelis sales.
• Entry into force in France of a regulation imposing significant discounts on the prices of drugs under the Temporary Authorization for Use (ATU) system.
• Highly competitive pharmaceutical market.
• Stringent regulations in the pharmaceutical industry.
• Significant R&D expenditure.

Mitigation Strategies

• Rigorous patent policy to protect inventions.
• Focus on developing innovative products in therapeutic areas with limited treatment options.
• Diversification of funding sources (credit and capital markets).
• Spread out credit risk among various institutions.
• Issued long-term debt.

Supply Chain Management

Responsible Procurement

• Suppliers were classified and will be assessed in terms of sustainability.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GHG Protocol

Certifications: ISO 45001, ISO 14001

Environmental Metrics

ESG Focus Areas

• Sustainability
• Governance

Environmental Achievements

• One company within the Group holds ISO 14001 Certification, a management tool for systematic control over interactions between the environment and the activities and processes of the company, all with a view to improving environmental performance and minimizing impact.

Social Achievements

• In 2023, the Group had 51.1% of women in management positions.
• The Company's Director Selection Policy approved by the Board of Directors establishes that the director candidate selection process will be based on an analysis of the skills required by the Company and the companies of its Group, with any director able to suggest candidates provided they meet the requirements established in the Policy. The Policy provides that the selection process should endeavor to identify candidates that contribute a diversity of knowledge, experience, age and gender, and that bring enlightening and pluralistic points of view to debates and decision-making within the Board of Directors, with the aim of promoting an appropriate composition of this corporate body.

Governance Achievements

• The Company's Board of Directors has the duty to establish the internal control and risk management systems, including as regards tax risks, and to identify the primary risks faced by the Company, in particular those risks arising from derivative transactions, as well as to implement and monitor adequate internal control and reporting systems.

Climate Goals & Targets

Environmental Challenges

• Competition risk/generics/industrial property: The pharmaceutical market is highly competitive and involves multinational companies, small and medium-sized national companies and generic laboratories, which can manufacture and market the product once the patent has expired. The emergence of this generic has had a direct impact on values, both through the official revision of the product's price and through price competition via commercial offers.
• Product development risk: On 9 February 2024, it was announced that the results of the Phase III clinical trial conducted by Sylentis with tivanisiran to evaluate the activity of this compound for the treatment of dry eye associated with Sjögren's syndrome, did not meet the primary endpoint. Consequently, the project was derecognised and the fair value of the Group company developing it was impaired.

Mitigation Strategies

• The Pharma Mar Group has a rigorous patent policy that seeks to protect new inventions arrived at through R&D activities.
• The Group has significantly fractioned the risk across different credit institutions, which provides the Company with greater flexibility and limits the impact in the event that any of its credits are not renewed. Furthermore, the Group has issued long-term debt to diversify its financing sources.
• The Group has contracted a liability policy for its directors and officers, which covers the risk of any given shareholder considering that a decision made by the Board of Directors or officers of the Group has harmed its interests as a shareholder and thus filing a claim.

Supply Chain Management

Climate-Related Risks & Opportunities