Climate Change Data

Environmental Metrics

ESG Focus Areas

• Animal Care
• Environment
• Food Safety and Quality
• Helping Communities
• People

Environmental Achievements

• Achieved ISO 14001 environmental certification for all farms and plants.
• Eight facilities achieved zero waste to landfill status.
• Significant reductions in GHG intensity and energy intensity (despite increased production).

Social Achievements

• Donated 17.6 million servings of protein to food banks.
• Awarded 95 scholarships totaling nearly $400,000.
• Launched Team Smithfield employee engagement initiative.
• Reduced employee turnover rate.

Governance Achievements

• Zero USDA recalls for the third consecutive year.
• Published an online ingredient glossary.
• Implemented Responsibility, Operational Excellence, and Innovation awards program.

Climate Goals & Targets

Environmental Challenges

• Reducing greenhouse gas emissions across the supply chain.
• Maintaining water efficiency while increasing overall consumption.
• Managing manure responsibly and innovatively.
• Addressing antibiotic resistance concerns.
• Reducing employee turnover.
• Attracting and retaining talent in the meat industry.

Mitigation Strategies

• Partnered with Environmental Defense Fund (EDF) to optimize fertilizer use.
• Implemented various water conservation projects at processing plants.
• Partnered with Roeslein Alternative Energy to convert hog manure into renewable natural gas.
• Voluntarily aligned antibiotics policy with FDA guidelines.
• Implemented employee engagement programs, safety initiatives, and competitive compensation and benefits.
• Expanded recruiting efforts at colleges and universities, and implemented the Career Foundation Program.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products and processes

Reporting Standards

Frameworks Used: GRI G4 Guidelines

Certifications: ISO 14001

Sustainable Products & Innovation

• Antibiotic-free pork products
• Reduced-sodium products

Awards & Recognition

• Ceres ranked Smithfield #1 in water management among leading meat companies.
• Numerous third-party environmental awards.

Environmental Metrics

ESG Focus Areas

• Healthier Enterprise
• Healthier Animals
• Healthier People
• Healthier Planet

Environmental Achievements

• Kiel, Germany manufacturing facility transitioned to 100% renewable wind energy by January 2022, reducing emissions by approximately 3,200 tons of CO2 per year.
• Introduced Experior™, the first U.S. FDA-approved product to reduce ammonia gas emissions from beef cattle.
• Reduced Scope 2 emissions by 12.8% and decreased water use by 10.7% compared to 2020.

Social Achievements

• Achieved 33% female representation in leadership globally in 2021.
• Achieved 16.9% People of Color in leadership in the U.S.
• Launched a Global Flexible Worker Standard and U.S. Teleworker Program.
• East Africa Growth Accelerator (EAGA) initiative reached 280,000 dairy and poultry farmers, treating over 20 million animals.

Governance Achievements

• Established a new Board committee, the Innovation, Science and Technology Committee.
• Expanded the responsibilities of the Finance and Oversight Committee.
• Adopted a “proxy access” bylaw.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacted volunteer hours and employee engagement.
• Scope 3 emissions assessment underway.
• Addressing climate-related risks and opportunities across the value chain.

Mitigation Strategies

• Implemented COVID-19 safety measures.
• Engaged an external consultant to assess Scope 3 emissions.
• Developed business continuity plans and risk mitigation strategies.
• Investing in innovation to reduce reliance on shared-class antibiotics.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products
• Addressing methane emissions from cattle

Reporting Standards

Frameworks Used: SASB Healthcare – Biotechnology & Pharmaceuticals, UN Sustainable Development Goals (UN SDGs), Task Force on Climate-Related Financial Disclosures (TCFD)

UN Sustainable Development Goals

• Goal 3: Good Health and Well-being
• Goal 2: Zero Hunger
• Goal 5: Gender Equality
• Goal 8: Decent Work and Economic Growth
• Goal 10: Reduced Inequalities
• Goal 12: Responsible Consumption and Production
• Goal 13: Climate Action

Elanco's Healthy Purpose pillars align with these SDGs.

Sustainable Products & Innovation

• Experior™ (reduces ammonia emissions)
• Bovaer® (methane-reducing feed additive)

Awards & Recognition

• FORTUNE’s 2021 Change the World list (19th spot)

Environmental Metrics

ESG Focus Areas

• Healthier Animals
• Healthier People
• Healthier Planet
• Healthier Enterprise

Environmental Achievements

• Sourced more than 12% of electricity from renewable sources in 2022.
• Customers using Rumensin between 2020 and 2022 have collectively avoided an estimated 7.2M metric tons of GHG emissions (CO2e).
• Completed a water recycling project that will reduce well water withdrawal for a cooling tower at our Clinton, Indiana manufacturing site.
• Decreased phosphorus discharge in final wastewater effluent at our Clinton, Indiana site.
• Achieved zero waste to landfill at our Hook, U.K. office in 2022. Over 90% of the location’s waste is recycled.

Social Achievements

• Launched Zorbium and Bexacat, and received conditional FDA approval for Varenzin-CA1 and a conditional USDA license for our canine parvovirus monoclonal antibody treatment.
• Delivered training to farm animal workers through the Elanco Pig Academy and other Elanco Knowledge Solutions (EKS) programs.
• Collaborated with the Banfield Foundation to enhance access to veterinary care for pet owners through lower-cost clinics in communities.
• Implemented a new adoption program at one of our research facilities.
• Supported veterinarians’ well-being through our Betterinary and Insights Discovery training programs, as well as advocating for Mental Health First Aid.
• Donated essential Elanco products and worked with state agencies to ensure aid to displaced animals during Hurricane Ian and the severe Kentucky floods.
• Launched ~190 new stock keeping units (SKUs) outside the U.S. through product enhancements and extension of existing products to new geographies.
• Representation of women in leadership globally increased to 35.8% in 2022 (from 32.9% in 2021).
• People of Color represented in U.S. leadership increased to 17.4% in 2022 (from 16.9% in 2021).
• In 2022, approximately 1,700 volunteers contributed more than 12,800 hours to causes around the world.

Governance Achievements

• Established a global ESG leadership team to further advance our Healthy Purpose ambitions and meet the increasing expectations of stakeholders worldwide.
• Revised charters for several Board committees and expanded internal steering committee engagement to ensure comprehensive oversight of our leading ESG issues and disclosures.
• Enhanced Board oversight by refining responsibilities for the Corporate Governance Committee regarding review of Elanco’s ESG and sustainability initiatives, policies and progress against goals – including quarterly presentations from leadership – affirming Audit Committee oversight of ESG disclosures.
• Hired a Global Head of ESG and Sustainability, and established a centralized global ESG and sustainability oversight team.
• Expanded the Elanco Healthy Purpose Steering Committee.

Climate Goals & Targets

Environmental Challenges

• Mitigating antimicrobial resistance (AMR)
• Reducing value chain emissions
• Achieving and sustaining a 30% reduction in DART (Days Away Restricted Time) injuries by 2025
• Matching or exceeding external employee engagement benchmark

Mitigation Strategies

• Instituted a multi-faceted approach to help protect the long-term viability of antibiotics and prevent compromised treatment outcomes in both humans and animals.
• Selecting green tariffs and other renewable grid electricity options from local providers and exploring power purchase agreements (PPAs).
• Implementing safety and case management initiatives at priority locations, aligning legacy Elanco and Bayer Animal Health teams around a common set of health and safety protocols, emphasizing the importance of workplace ergonomics.
• Increased communications through company-wide town halls and other touchpoints with senior leadership.

Supply Chain Management

Responsible Procurement

• Enhanced Business Partner Code of Conduct and third-party due diligence platform to ensure comprehensive information from current and prospective suppliers and business partners on their practices related to more than 20 leading ESG topics.

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: SASB, TCFD, UN SDGs

UN Sustainable Development Goals

• SDG 2: Zero Hunger
• SDG 12: Responsible Consumption and Production

Elanco’s core business aligns with SDG 2 by supporting livestock producers seeking to improve the productivity, efficiency and sustainability of their operations. We align with SDG 12 through continuous improvement in resource efficiency within our operations and in interactions with customers and suppliers.

Sustainable Products & Innovation

• Bovaer (3-NOP)
• Experior

Awards & Recognition

• Seramount’s Best Companies for Dads
• Seramount 2022 Global Inclusion Index
• City of Sao Paulo’s “Human Rights and Diversity” stamp

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Social Sustainability
• Cultural Sustainability
• Governance

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Seasonality impacting local communities and placing pressure on staff
• Overcrowding during peak times
• Supply chain disruptions

Mitigation Strategies

• Working with local tourism organizations to manage seasonality through initiatives like seasonal events or special offers
• Reviewing products and experiences to encourage business in shoulder seasons
• Educating visitors on the sustainability challenges during high visitation times and benefits of off-season travel
• Establishing a strong local supply chain to reduce risks and strengthen community relationships

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Preference for local suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Floods, fires, droughts, cyclones

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed