Climate Change Data

Environmental Metrics

ESG Focus Areas

• Data protection
• Patient safety and health
• Employee motivation
• Compliance
• Emissions/climate change
• Waste
• Corporate Governance
• Health and safety in the workplace
• Diversity and equal opportunities

Environmental Achievements

• Reduction in CO2 emissions by 4% since 2013
• Renovation of Alloga building roof to prepare for solar power station installation
• Implementation of measures with potential to reduce annual energy consumption by more than 381 MWh or around 39 tonnes of CO2

Social Achievements

• 80% of Galenica pharmacies obtained a quality label for good patient service
• 97% of side effects reports were forwarded in due time by employees at Verfora
• Employee satisfaction score of 75 out of 100 index points (+3 points compared with the previous survey)
• Introduction of absence management system at Alloga to preserve employees’ capacity to work

Governance Achievements

• Compliance with Swiss Code of Best Practice for Corporate Governance
• Regular review of pay parity between men and women, showing equal pay is observed

Climate Goals & Targets

Environmental Challenges

• Implementation of new regulations based on the revised Therapeutic Products Act and changes to data protection rules
• Increase in the number of illnesses and industrial accidents
• Increase in employee turnover (12.8% in 2017)
• Long-term absences among employees at Alloga
• Challenges in the Swiss healthcare market (drug price reductions, shopping tourism, stagnant retail development)

Mitigation Strategies

• Group-wide staff development programme (UME)
• Group-wide Talent Management Programme
• Preventive case management tool of Helsana
• Absence management system
• External advisory centre for employees to address violations of personal integrity
• Revised Appendix to the Personnel Regulations “Protection of Personal Integrity”
• Binding targets agreed with the Federal Office for the Environment (FOEN) for energy efficiency

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct (ethics, labour law, health, safety, quality, environment)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 9001 (Alloga, UFD, Medifilm, HCI Solutions locations)

Environmental Metrics

ESG Focus Areas

• Patient safety and health
• Employee development and motivation
• Emissions / climate change
• Waste
• Corporate Governance
• Data protection
• Procurement
• Economic responsibility
• Social responsibility
• Environmental responsibility

Environmental Achievements

• Reduced energy consumption per full-time equivalent in 2019 compared to the previous year.
• Photovoltaic system on the roof of Alloga generated green electricity for some 270 households, saving 240 tonnes of CO2.

Social Achievements

• Developed a new staff development programme (to be launched in 2020).
• 94% of Galenica pharmacies achieved a quality label for good patient service.
• Reduced employee turnover by 8%.

Governance Achievements

• Revised compliance programme implemented in 2018 following the IPO in 2017.
• Web-based training on anti-corruption and IT security conducted.
• Group-wide data protection policy developed.

Climate Goals & Targets

Environmental Challenges

• Increased number of industrial and non-industrial accidents (attributed to increased number of pharmacies and renovations).
• Long-term absences among employees at Alloga and Galexis.
• Implementation of new regulations based on the revised Therapeutic Products Act and the forthcoming amendment of the Swiss Data Protection Act.

Mitigation Strategies

• Preventive case management to identify potential risks to employees’ health.
• Absence management system introduced at Alloga and Galexis.
• Regular safety audits by external safety advisors.
• Development of a Group-wide mobility concept to reduce CO2 emissions.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct (ethics, labour law, health, safety, quality, environment).

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 9001 (Alloga, Medifilm, Mediservice, UFD, HCI Solutions locations), ISO 13485 (Verfora), ISO 13485 (Bichsel Group)

Environmental Metrics

ESG Focus Areas

• Patient safety and health
• Emissions and climate change
• Waste and recycling
• Employee motivation and development
• Securing skilled workers
• Health and safety at the workplace
• Diversity and equal opportunity
• Corporate Governance
• Compliance
• Reliable procurement and supply chain

Environmental Achievements

• Reduced heat consumption by around 11% compared to the previous year due to the conversion of the Bichsel Group’s production area and installation of a heat pump at the Niederbipp site.
• 44% of energy consumption within the organisation comes from renewable sources.

Social Achievements

• Invested CHF 3.7 million in employee training and development (previous year: CHF 3.3 million).
• Reduced the number of occupational accidents by 5% compared to 2020.
• Increased the number of employees to 7,239 (previous year: 7,205).

Governance Achievements

• Established an Anti-Corruption Policy and a Whistleblower Reporting Office.
• Implemented regular compliance training for all employees.

Climate Goals & Targets

Environmental Challenges

• Increased energy consumption (9% year-on-year) due to inclusion of company vehicle fuel consumption in data for the first time.
• Increased number of non-occupational accidents (14% year-on-year) due to integration of companies and pharmacies into the HR system.
• Decreased employee survey response rate (58%, down from previous year).
• Supply chain disruptions.
• Securing skilled workers in healthcare and IT sectors.

Mitigation Strategies

• Focusing on new mobility concepts and renewable energies in distribution.
• Implementing energy efficiency measures in renovations and conversions.
• Investing in employee training and development.
• Implementing preventive case management to reduce illness absences.
• Addressing employee concerns identified in the Opinio survey.
• Working closely with suppliers to ensure medicine availability.
• Adapting recruitment strategies to address skilled worker shortages.

Supply Chain Management

Supplier Audits: Compliance of top ten suppliers with Supplier Code of Conduct to be reviewed every three years from 2025.

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards (Core option)

Certifications: ISO 9001 (Alloga, Medifilm, Mediservice, UFD, HCI Solutions sites), ISO 13485 (Verfora, Bichsel, HCI Solutions)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 3 (Health and Well-being)
• SDG 8 (Decent Work and Economic Growth)
• SDG 12 (Responsible Consumption and Production)
• SDG 13 (Climate Action)
• SDG 10 (Reduced Inequalities)
• SDG 16 (Peace, Justice and Strong Institutions)

Galenica's contributions through its healthcare services, employee development, resource efficiency, emissions reduction, diversity initiatives, and compliance efforts.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Sustainable and ethical corporate governance
• Integrity in the supply chain
• Data protection
• IT security and cybercrime
• Greenhouse gas emissions and resources
• Attractive workplace
• Occupational health and safety
• Equality and diversity
• Patient safety
• Security of supply and procurement
• Health promotion
• Social commitment

Environmental Achievements

• Reduced electricity consumption by 3%
• Achieved thermal savings of 227,360 kWh and 67.9 tCO2 per year at the Niederbipp site by installing a heat pump
• Reduction of annual energy consumption by 617,695 KWh and 107.4 tCO2 at the Lausanne-Ecublens site
• Savings of 428,245 kWh and 126.6 tCO2 per year at Alloga with a new groundwater heat pump
• Installation of a solar installation with around 5,700 solar modules at the Niederbipp site, covering one-third of Galexis’ electricity needs
• New heat pump at Alloga saving around 120 tCO2 emissions every year
• Additional insulation at Alloga resulting in additional energy savings of 10–15% each year

Social Achievements

• Increased employee motivation rate to 76 out of 100 points in the Opinio employee survey (72% participation rate)
• Reduced employee turnover to 12% (from 14.6% in 2022)
• Implemented a new e-learning course on data protection
• Developed a new process for exercising the right of access to personal data
• Appointed data protection coordinators in all Service Units and Business Units
• Offered two e-learning courses on IT security and cybercrime (88% average participation rate)
• Introduced an integrated safety system at Galexis, systematically recording and presenting safety-relevant activities and situations
• Introduced an accident barometer at Alloga
• Designated safety officers in each Galenica Group pharmacy
• Expanded cooperation with Movis and Carelink to improve health protection
• Offered all employees an annual flu vaccination
• Successfully completed equal pay analysis showing compliance with “equal pay for equal work” in all ten companies surveyed

Governance Achievements

• Updated Supplier Code of Conduct in 2023
• Implemented a new IT Security Board
• Developed a new e-learning course on data protection
• Centralized recruitment activities across the Group
• Introduced joint bonus-related targets for the Executive Committee, Senior Management, and Management

Climate Goals & Targets

Environmental Challenges

• Implementation of new provisions of the revised Therapeutic Products Act (TPA) and the Swiss Data Protection Act (DPA)
• Achieving 100% participation rate in employee compliance training due to technical challenges and employee absences
• Increasing supply bottlenecks in the pharmaceutical supply chain
• High global warming potential of refrigerant emitted due to a leak at Galexis
• Limited choice of energy sources for heating and electricity in rented pharmacy premises
• Data limitations due to the primarily inorganic growth of the company and different personnel systems
• Long charging times for electric GDP delivery vehicles
• Requirement for temperature-controlled transport in accordance with GDP guidelines for hydrogen-powered lorries
• Shortage of skilled workers, particularly in healthcare professions and IT

Mitigation Strategies

• Legal Department supports Service Units and companies in interpreting and applying legislation correctly
• Solved technical challenges for employee compliance training, achieving 88% participation rate among employees with PC workstations
• Close cooperation with suppliers to ensure the greatest possible availability of medicines
• Use of IT-based scheduling system to optimize procurement and logistics processes
• Temporarily discontinuing delivery of non-essential products to guarantee supply of essential products during critical bottlenecks
• Reducing order amounts to prevent hoarding purchases
• Implementing economically viable measures to use resources efficiently and reduce environmental impact
• Working with the Energy Agency for Industry (EnAW) to define an efficiency path
• Investing in renewable energies in distribution logistics (biogas and electric vehicles)
• Implementing measures to improve energy efficiency during renovations (heat pumps, insulation, photovoltaic systems)
• Focusing on energy-saving lighting and motion detectors when renovating pharmacies
• Centralized recruitment activities and new processes to reduce time-to-hire
• Expanded cooperation with Movis for early detection and prevention of mental illnesses
• Implementing an integrated safety system at Galexis to reduce occupational accidents

Supply Chain Management

Supplier Audits: Review of top 10 suppliers every three years from 2025

Responsible Procurement

• Supplier Code of Conduct
• Safety Stock Initiative (Galexis and Sandoz)

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 9001, ISO 13485

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed