Climate Change Data

Environmental Metrics

ESG Focus Areas

• Corporate Responsibility
• Access to Medicines
• Environment, Health and Safety
• Ethical Conduct
• Community Investment

Environmental Achievements

• Progress made to meet 2010 targets for wastewater pollution, disposal of waste and emissions of volatile organic compounds to air due to a combination of conservation programmes and reduced production of several products.
• Remained on track to eliminate the use of CFCs by 2010 and to meet its target for water consumption.

Social Achievements

• Global community investment in 2008 was £124 million (compared with £109 million in 2007), an increase of 13%.
• Together Rx Access program provided reductions in pharmacy costs on more than 300 medicines, saving cardholders about $24 million in 2008.
• Positive Action on HIV/AIDS program worked with 16 partners to support programs in 21 countries.
• Eliminating lymphatic filariasis program donated 266 million albendazole treatments to 30 countries in 2008.

Governance Achievements

• Completed or expanded 21 new drug discovery alliances.
• Created 35 Discovery Performance Units, small teams each with three-year funding in place.
• Implemented a detailed formal plan for a significant new Operational Excellence restructuring programme.

Climate Goals & Targets

Environmental Challenges

• Adverse impact of significant US patent expiries and further decline in Avandia sales.
• Increasing pressures on pharmaceutical companies to deliver products with demonstrable benefits over current treatments.
• The pharmaceutical sector has been exposed to controversy regarding ethical and patient safety issues.
• The global economy deteriorated sharply during 2008 as the financial crisis deepened.

Mitigation Strategies

• Established three strategic priorities: grow a diversified global business; deliver more products of value; and simplify the operating model.
• Expanded restructuring programme, which is expected to deliver annual savings of £1.7 billion by 2011.
• Refocusing marketing to demonstrate value and introducing new product offerings which focus on volume opportunities in the US pharmaceuticals business.
• Continued investment in research into diseases of the developing world.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: IFRS

Third-party Assurance: PricewaterhouseCoopers LLP

Awards & Recognition

• CommunityMark

Environmental Metrics

ESG Focus Areas

• Employee well-being
• Workforce diversity
• Environmental sustainability
• Supply chain
• Corporate Social Responsibility

Environmental Achievements

• Nashik site achieved an 1818 T of CO2 reduction (12% net reduction) and 15% reduction in water consumption in 2018 compared to 2017.
• Vemgal site designed to obtain LEED Gold certification, incorporating environmentally friendly design and resources.

Social Achievements

• Launched the modern employer initiative with three key pillars: BeYou (inclusion and diversity), FeelGood (wellbeing), and KeepGrowing (learning and development).
• Achieved 16% gender diversity in the workforce, 16% women at the Board level, and 28% women representation in top leadership positions.
• GSK Pharma recognised as one of the Top-100 2018 Working Mother & AVTAR Best Companies for Women in India and WILL Best Employers for Women.
• High employee engagement score (92% in April 2019).

Governance Achievements

• Implemented a new commercial model focusing on priority therapy areas and customer engagement.
• Embraced digital transformation using data analytics and AI to improve customer insights and experience.
• Established a Speak Up programme for reporting misconduct.

Climate Goals & Targets

Environmental Challenges

• Competitive and partly price-controlled generic market.
• Large out-of-pocket healthcare expenditure in India.
• Ensuring consistent pharmaceutical quality and efficacy.
• Addressing unmet medical needs in the evolving landscape of personalized medicines and specialty drugs.

Mitigation Strategies

• Implemented a new commercial model with increased focus on priority brands and trade channel strategy.
• Invested in expanding the field force and building capabilities.
• Enhanced technological capabilities to optimize medical and field force engagement.
• Launched Nucala for severe eosinophilic asthma and Infanrix Hexa vaccine.
• Collaborated with policymakers to create an ethical and inclusive healthcare ecosystem.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Sourcing from local Micro, Small and Medium Enterprises (MSMEs), GSK Audit and Approval process for vendors.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: GMP and GLP certification from the USFDA (Nashik site)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• OPPI Sales Force Excellence Award, Best-in-Class Excellence in Continuous Improvement at the Manufacturing Supply Chain Awards Summit, Gold in Healthy Workplace Assessment by Arogya World (Nashik site), Digital Pioneer of the Year.

Environmental Metrics

ESG Focus Areas

• Trust
• Environmental Impact
• Access and Affordability
• Employee Engagement
• Inclusion and Diversity
• Ethical Conduct
• Product Safety and Quality
• Supply Chain Management
• Human Rights

Environmental Achievements

• Reduced energy consumption
• Reduced water consumption at high water risk sites
• Increased percentage of waste sent for beneficial use

Social Achievements

• Maintained competitive employee engagement score
• Increased percentage of women in senior roles
• Increased access to healthcare services through partnerships

Governance Achievements

• Increased percentage of women on the Board
• Improved ethical conduct score
• Increased clinical trial transparency

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: 43 audits of 3rd party suppliers

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: SASB, UNGC, GRI

Certifications: Null

Third-party Assurance: DNV GL, Carbon Trust

UN Sustainable Development Goals

• Goal 3

Biggest contribution towards Goal 3: ensure healthy lives and promote well-being for all at all ages

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Trust
• Health
• Environment
• Social
• Governance

Environmental Achievements

• Increased renewable electricity to 52% of total electricity used.

Social Achievements

• Achieved an employee engagement score of 84%
• Increased percentage of women in all employee roles to 47%
• Reduced reportable incidents with lost time by 31.5%

Governance Achievements

• 89% of employees agreed that their work environment encouraged ethical behavior.

Climate Goals & Targets

Environmental Challenges

• Mass drug administration programmes were disrupted/paused in 2020 due to the COVID-19 pandemic.
• Scope 3 emissions data was incomplete due to data collection limitations.

Mitigation Strategies

• Developed alternative sourcing strategies and implemented a hybrid model combining primary activity-based data and economic data for Scope 3 emissions reporting, quality assured by the Carbon Trust.

Supply Chain Management

Supplier Audits: 36 (EHS, ethics and labour rights audits of 3rd party suppliers)

Responsible Procurement

• Working with third parties

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: SASB, UNGC, GRI

Certifications: Null

Third-party Assurance: DNV

UN Sustainable Development Goals

• Goal 3

Our biggest contribution is towards Goal 3: ensure healthy lives and promote well-being for all at all ages.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Water Stewardship
• Waste Management
• Biodiversity
• Sustainable Sourcing
• Governance

Environmental Achievements

• Achieved 2030 overall water use reduction target in 2022
• 100% of sites are good water stewards
• 90% of sustainably sourced paper and palm oil in 2022 (aiming for 100% by 2025)
• Committed to reduce absolute scope 1 and 2 emissions by 80% and scope 3 emissions by 80% by 2030 (from a 2020 base year)

Social Achievements

• Partnership with Save the Children and Nashik GSK site in India on Swachh Bharat: Swachh Vidyalaya campaign, reaching over 10,000 children
• ESG performance measures introduced into short- and long-term incentive plans (10% of long-term incentive plan for senior leaders)

Governance Achievements

• Board-level Corporate Responsibility Committee (CRC) oversees progress against environmental targets
• President, Global Supply Chain, has management responsibility for environmental sustainability
• GSK Sustainability Council monitors delivery of commitments

Climate Goals & Targets

Environmental Challenges

• Need for partnership with medicine regulators to accelerate environmental improvements to products
• Need for more consistent corporate reporting requirements
• Need for investment in renewable energy
• Need for infrastructure improvements to meet electric vehicle goals
• Need for a common carbon offsetting framework
• Challenges in achieving deforestation-free sourcing due to complex supply chains

Mitigation Strategies

• Developing a green pathway for metered dose inhalers
• Assessing and reporting on climate change risks using TCFD requirements
• Aiming to use 100% renewable energy by 2030
• Putting charging points on sites and advocating for national recharging infrastructure
• Prioritizing nature-based solutions for carbon offsetting and aligning with scientific principles
• Developing sourcing standards for key materials and working with suppliers to improve sustainability

Supply Chain Management

Responsible Procurement

• Sustainable sourcing standards for suppliers of agricultural, forestry and marine derived materials
• Working with suppliers to develop policies and improvement plans in line with GSK's standards

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions
• Energy outages
• Water availability

Reporting Standards

Frameworks Used: TCFD, Science Based Targets initiative (SBTi), Science Based Targets Network for Nature (SBTN), Taskforce on Nature-related Financial Disclosures (TNFD)

Sustainable Products & Innovation

• Alternative propellant for Ventolin inhaler (potential 90% reduction in greenhouse gas emissions)

Environmental Metrics

ESG Focus Areas

• Healthcare
• Education
• Community Development
• Social Inclusion

Social Achievements

• Trained over 3,660 ASHA workers in Uttar Pradesh for Morbidity Management and Disability Prevention (MMDP) for lymphatic filariasis.
• Implemented an integrated approach to child nutrition across 5,000 households in Mumbai, improving institutional deliveries, family planning usage, and addressing violence against women and children.
• Provided maternal and child care to over 600 households in West Bengal to reduce malnutrition.
• Established clean sanitation facilities and child cabinets in 20 schools in Nashik, Maharashtra, impacting over 10,000 beneficiaries.
• Provided remedial education to 70 school dropouts in Gurugram, Haryana.
• Provided free residential formal school education, co-curricular activities, and vocational training to 120 underprivileged girls in Patna, Bihar.

Climate Goals & Targets

Environmental Challenges

• Lymphatic filariasis prevalence in Uttar Pradesh.
• Malnutrition and lack of access to healthcare in Mumbai and West Bengal.
• Lack of sanitation and hygiene in schools in Nashik.
• High number of school dropouts in Gurugram.
• Lack of educational opportunities for underprivileged girls in Patna.

Mitigation Strategies

• Partnered with Project Concern International (PCI) to implement MMDP for lymphatic filariasis.
• Partnered with Society for Nutrition, Education & Health Action (SNEHA) to improve child nutrition in Mumbai.
• Partnered with Save the Children (STC) to provide WASH facilities in schools in Nashik.
• Established learning centers for out-of-school children in Gurugram through Sakshi - TAP.
• Established a residential school for underprivileged girls in Patna through Nai Dharti.

Supply Chain Management

Climate-Related Risks & Opportunities

UN Sustainable Development Goals

• SDG 3: Good Health and Well-being
• SDG 4: Quality Education
• SDG 5: Gender Equality
• SDG 6: Clean Water and Sanitation
• SDG 10: Reduced Inequalities

The CSR initiatives contribute to these SDGs by improving healthcare access, promoting education, empowering women, improving sanitation and hygiene, and reducing inequalities.

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced scope 1 and 2 carbon emissions by 15% compared to 2020
• Reached 67% renewable electricity, a 15% increase since 2020
• Reduced overall water use in operations by 16% compared to 2020

Social Achievements

• Reached 13.9 million people through healthcare access partnerships (exceeding the 2025 target)
• Maintained a competitive employee engagement score of 78%
• Women held 40% of VP and above roles (up from 38% in 2020)

Governance Achievements

• 99.4% of employees and 92.9% of contract workers completed ethics training
• Disciplined 1,176 employees for policy violations (increased from 2020)

Climate Goals & Targets

Environmental Challenges

• Increased strain on global supply chains due to the pandemic
• Metered dose inhalers contributing significantly to carbon footprint
• Gaps in site-level data reporting

Mitigation Strategies

• Developed a new wellbeing program (myWellbeing)
• Started R&D for a lower-impact propellant for inhalers
• Improved data collection and reporting processes

Supply Chain Management

Supplier Audits: 1833 (quality audits) + 79 (EHS and ethics audits)

Responsible Procurement

• EHS requirements for suppliers
• Supplier Environmental Sustainability Awards

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB, GRI, UNGC, TCFD

Third-party Assurance: DNV

UN Sustainable Development Goals

• Goal 3

Contributions to ensuring healthy lives and promoting well-being for all at all ages

Sustainable Products & Innovation

• Trelegy Ellipta (carbon neutral medicine)

Awards & Recognition

• 1st in pharmaceutical industry group for DJSI 2021
• S&P Global Sustainability Award: Gold Class 2022
• Ranked 1st in ATMI in 2021

Environmental Metrics

ESG Focus Areas

• Global health and health security
• Diversity, equity and inclusion
• Environment
• Product governance
• Ethical standards

Environmental Achievements

• Launched Sustainable Procurement Programme for suppliers

Social Achievements

• GSK tops Access to Medicine Index (ATMI) for eighth consecutive time
• ViiV Healthcare commits to grant voluntary licence for patents relating to cabotegravir long-acting for PrEP to Medicines Patent Pool
• GSK announces £1 billion R&D investment over ten years to get ahead of infectious diseases in lower-income countries

Governance Achievements

• Introduced a 10% ESG measure into both short and long-term incentive plans

Climate Goals & Targets

Environmental Challenges

• Need to do more to extend product reach in lower-income countries
• Addressing antimicrobial resistance

Mitigation Strategies

• Using innovative pricing structures, tiered pricing for vaccine tenders, working with partners, systematically evaluating pipeline and portfolio with global health partners to develop access plans

Supply Chain Management

Responsible Procurement

• Sustainable Procurement Programme

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Access
• Global health and health security
• Environment
• Diversity, equity and inclusion
• Ethical standards
• Product governance

Environmental Achievements

• Announced phase III trials of a low carbon version of its metered dose inhaler, Ventolin, with the potential to reduce greenhouse gas emissions by approximately 90%.

Social Achievements

• Shipped first doses of malaria vaccine, Mosquirix, to Cameroon.
• Announced recipients of the inaugural grant programme of the COiMMUNITY Initiative to address barriers to adult immunisation in the US.
• Opened a call for research proposals focused on infectious disease research.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

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

• Low carbon Ventolin inhaler

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change

Environmental Achievements

• 80% absolute reduction in greenhouse gas emissions from a 2020 baseline across all scopes by 2030
• 100% imported renewable electricity by 2025 and 100% renewable electricity (imported and generated) by 2030 (Scope 2)

Climate Goals & Targets

Environmental Challenges

• Harder-to-tackle emissions from across our supply chain, our own operations, logistics, and disposal beyond 2030

Mitigation Strategies

• Collaboration with peers and public/private partnerships to address residual emissions; decarbonization following a similar timeframe to the broader economic transition

Supply Chain Management

Responsible Procurement

• Sustainable Procurement Programme, driving targeted supplier engagement and setting sustainability standards

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Science Based Target Initiative Net-Zero Standard

Sustainable Products & Innovation

• Next generation, lower-carbon propellant for MDIs