Climate Change Data

Environmental Metrics

ESG Focus Areas

• Supporting Patients and Consumers
• Innovating for the Future
• Enhancing Access
• Safeguarding the Environment

Environmental Achievements

• Reduced CO2e emissions, total water, and total waste in operations.
• Water savings of 3,500 tons per year at Shanghai plant due to stainless steel piping upgrade.
• Saved approximately 165 tons of paper packaging per year by resizing packaging.
• Eliminated 31.2 tons of plastic waste per year by changing package labeling.

Social Achievements

• Trained more than 3,000 health care professionals in clinical nutrition through the Abbott Fund Institute of Nutrition Science (AFINS).
• Reduced malnutrition among children admitted to Shanghai Children’s Medical Center by 27%.
• Reached more than 136,550 mothers at 244 hospitals in China with perinatal nutrition program.
• Donated more than 15 million RMB in nutrition products to help relieve childhood malnutrition, reaching more than 18,000 children.
• Trained 2,735 physicians and laboratory professionals.
• Expanded Family Science program to nine cities, with 284 Abbott volunteers and 819 parents and children participating.
• More than 470 Abbott China volunteers contributed more than 3,805 hours of service.

Governance Achievements

• Established a five-year plan for expanding citizenship programs and activities.
• Developed a strong governance structure with a Business Advisory Council (BAC) and a Citizenship Working Group.
• Implemented ethics and compliance training for all new employees and regular refresher courses.
• Conducted 15 supplier social responsibility audits in China.

Climate Goals & Targets

Environmental Challenges

• Water scarcity and pollution.
• Growing prevalence of chronic diseases (diabetes, hepatitis C, obesity).
• Limited availability of testing equipment in China.
• Varying access and quality of care across the nation.
• Childhood malnutrition, especially in rural areas.

Mitigation Strategies

• Implemented programs to reduce water use and improve efficiency.
• Invested in research and development to address evolving health care challenges.
• Introduced Optium Xceed, a glucose and ketone testing system.
• Partnered with government and NGOs to improve access to healthcare.
• Established AFINS to address childhood malnutrition.

Supply Chain Management

Supplier Audits: 15 in 2011

Responsible Procurement

• Supplier Guidelines (ethical behavior, human rights, labor rights, environmental stewardship, health and safety).

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Bag-in-box packaging for nutritional products.

Awards & Recognition

• 2011 China Best Corporate Citizenship Award
• Asia CSR Award for Educational Improvement
• Top Ten CSR Case Award (Family Science program)

Environmental Metrics

ESG Focus Areas

• Innovating for the Future
• Enhancing Access
• Supporting Patients and Consumers
• Safeguarding the Environment

Environmental Achievements

• 5.3 percent absolute reduction in total energy consumed since 2010
• 18 percent reduction in energy use and more than 500 million pounds reduction in CO2 emissions at pharmaceutical plants since 2006
• 14 percent reduction in overall carbon emissions at Abbott Ireland since 2011
• 7.6 million pounds reduction in carbon emissions at Karachi plant projected with new cogeneration unit
• 5.7 percent reduction in the amount of packaging used and distributed to customers by 2012 versus a 2007 baseline

Social Achievements

• Launched Exercise Across Abbott, a global four-week team-based fitness program with 364 teams consistently increasing their weekly minutes
• Implemented LiveLifeWell wellness program in the US with 60% employee and 55% spouse participation
• Expanded mentoring program in Europe
• Developed online training program in Italy to address diversity and work-life harmony issues for women
• Launched annual CSR idea campaign in China with 4,000 employee participants and over 500 ideas collected

Governance Achievements

• Achieved maximum score in the environmental policy and management category of the Dow Jones Sustainability Index for a fourth consecutive year
• Established a Global Citizenship Advisory Council (GCAC) to formalize stakeholder engagement
• Implemented a risk-based system focusing on health and safety performance improvement

Climate Goals & Targets

Environmental Challenges

• Extreme weather patterns and water scarcity posing challenges for sourcing, operations, and distribution
• Lack of awareness or current information about key disease states among patients and healthcare providers
• Lack of basic healthcare infrastructure in many parts of the world
• Social stigmas surrounding certain diseases
• Health care affordability issues
• Counterfeiting, illegal diversion, and theft of Abbott products

Mitigation Strategies

• Comprehensive environmental management program to reduce emissions
• Public-private partnerships to broaden access to healthcare services
• Educational programs for healthcare providers and patients
• Pricing strategies to maximize access to healthcare products
• Secure the Supply Chain, Ensure Ability to Authenticate, Disrupt Criminal Organizations, Build Global Momentum strategies to address product counterfeiting

Supply Chain Management

Supplier Audits: Over 1,000 on-site supplier quality audits completed

Responsible Procurement

• Supplier Guidelines in multiple languages
• Supplier Performance Program
• Supplier Diversity Program
• Green Procurement Policy

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather patterns
• Water scarcity

Transition Risks

• Changes in global disease burden

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI G3 Sustainability Reporting Guidelines

Third-party Assurance: Environmental Resources Management (ERM)

Sustainable Products & Innovation

• Dual-chambered bottle for mixing syrups
• Klacid packaging using recycled materials
• SimplySmart baby bottle

Awards & Recognition

• Plus X Award for FreeStyle InsuLinx
• Bronze winner in the Digital Design category of the IDEA Awards for FreeStyle InsuLinx
• Finalist for the Medical Design Excellence Awards for FreeStyle InsuLinx
• Empresa Amiga da Criança (Child-Friendly Company) award in Brazil

Environmental Metrics

ESG Focus Areas

• Delivering Product Excellence
• Improving Access
• Safeguarding the Environment
• Valuing Our People
• Supply Chain Excellence
• Ethics and Integrity
• Community Engagement

Environmental Achievements

• Reduced Scope 1 and 2 CO2e emissions by 24 percent between 2010 and 2014 (16,000 metric tonnes)
• Reduced total water intake by 0.62 percent between 2010 and 2014 (one million gallons of water)
• Reduced total waste by 13 percent between 2010 and 2014 (632 metric tonnes of waste)
• Achieved Zero Waste to Landfill at all manufacturing facilities
• 22% reduction in carbon emissions at Cootehill plant by switching to natural gas (10 million lbs of carbon)
• 14% reduction in carbon emissions at Longford plant by switching to liquefied propane gas (118,000 kilos of carbon)

Social Achievements

• Employees volunteered more than 8,000 hours in local communities
• Hospital to Home program provided more than 570 hours of individualized training
• Partnership with AHEAD and WAM to introduce a workplace access program for disabled university graduates, recruiting more than 30 graduates
• LiveLifeWell program for employee well-being
• Ideas into Action program for company improvement
• Award-winning employee volunteering program, Croi an Óir

Governance Achievements

• Established an Abbott Ireland Compliance Committee to monitor ethics and compliance
• Abbott Code of Business Conduct published in 10 languages

Climate Goals & Targets

Environmental Challenges

• Lack of basic healthcare infrastructure in developing nations
• Shortages of healthcare professionals and facilities
• Increased prevalence of chronic diseases in developing countries
• Energy and water intensive manufacturing processes

Mitigation Strategies

• Investment in modernizing Tanzania’s healthcare infrastructure (€86.5 million)
• Support for a network of 23 laboratories in Tanzania
• Volunteer training and mentoring in Tanzania
• Utility Excellence (UEx) program to reduce utility usage by 50 percent by 2017

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Locally sourcing dairy ingredients since 1975
• Partnership with Irish dairy organizations
• Audits and routine testing protocols
• Liaison with industry regulators

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

• Not disclosed

Awards & Recognition

• 2014 Excellence in Environment Award from Chambers Ireland
• 2014 Excellence in Marketplace Award from Chambers Ireland
• 2013 Engineers Ireland Career Professional Development Employer of the Year Award
• Shingo Prize for Clonmel plant
• Silver Award from the National Irish Safety Organisation
• gradIreland Graduate Employee of the Year
• Most Popular Graduate Recruiter in Ireland (Science category)

Environmental Metrics

ESG Focus Areas

• Delivering Product Excellence
• Improving Access
• Safeguarding the Environment
• Responsible Business Practices
• Shared Value
• Strategic Philanthropy

Environmental Achievements

• Reduced absolute energy consumption by 9 percent and absolute greenhouse gas emissions by 15 percent from 2010.
• In Germany, investments in energy projects at our diagnostics facility will result in an emissions reduction of 3.2 million pounds of CO2e, or 14 percent of the site’s total emissions.
• In China, our nutrition facility has decreased water usage by 12 percent compared to 2014, saving more than $130,000.
• By the end of 2015, 20 of our manufacturing sites and four non-manufacturing sites had achieved zero-waste-to-landfill status.

Social Achievements

• Launched WomenFirst campaign empowering women in Russia to take an active role in managing their health.
• Trained 180 Indian doctors in advanced cataract surgery techniques, giving them the skills to save the sight of 36,000 people per year.
• Increased the percentage of minorities in management positions at Abbott from 22 percent in 2010 to 29 percent in 2015.
• Launched a campaign to help managers increase their leadership skills, learn how to inspire well-being in their teams and get things done while easing stress.

Governance Achievements

• Updated the Abbott Code of Business Conduct, which sets forth our basic guidelines and requirements for ethical behavior and is available in print and online in 26 languages.
• More than 90 percent of Abbott employees around the world participate in our Legal and Ethics Resource Network (LERN) program.

Climate Goals & Targets

Environmental Challenges

• Climate change represents a serious threat to healthy living environments worldwide, through consequences such as severe weather, flood and drought.
• Extreme weather patterns and water scarcity could lead to significant changes in the nature of global diseases and their impact on people’s opportunity to live healthy lives. They also pose challenges for our sourcing, operations and distribution.
• Counterfeit, illegally diverted and stolen Abbott products in the marketplace.

Mitigation Strategies

• Developed a comprehensive management program to address emissions impacts, including increasing energy efficiency across our operations and integrating green engineering technologies and concepts into our projects.
• Developed a Global Product Security team with four key strategies: Securing the Supply Chain, Ensuring Ability to Authenticate, Disrupting Criminal Organizations, and Building Global Momentum.
• Implemented a new One Procurement approach to supply chain management.

Supply Chain Management

Supplier Audits: 350 suppliers surveyed annually in 2015 (increased from 100 in previous years).

Responsible Procurement

• Supplier Social Responsibility (SSR) Policy
• Green Procurement Policy
• One Procurement approach

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather, flood, drought

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI G4 Sustainability Reporting Guidelines, CDP (Carbon Disclosure Project)

Certifications: ISO 13485, ISO 14001:2004, ISO 17025, ISO 22000, ISO 90013, NSF International, GFCO, GMP+FSA, HACCP

Third-party Assurance: Bureau Veritas

UN Sustainable Development Goals

• Not disclosed

Abbott’s work to improve healthcare access supports the UN’s Sustainable Development Goals.

Sustainable Products & Innovation

• FreeStyle Libre Flash Glucose Monitoring System
• Eleva Blue and Eleva Organic infant formulas
• Supera stent
• LiDoCon device
• TECNIS Symfony Extended Range of Vision Intraocular Lens

Awards & Recognition

• Dow Jones Sustainability World Index and North America Index (Global Industry Group Leader for the third consecutive year)
• Fortune Most Admired Companies 2015 (No. 1 overall and No. 1 for social responsibility in Medical Products and Equipment)
• 2013 Climate Leadership Award from the U.S. Environmental Protection Agency
• China Excellent Corporate Citizenship Award
• Outstanding Contribution Award from the Children and Youth Service Center of CAST
• Great Place to Work in several countries
• Global 100 Best Corporate Citizens list (No. 11)

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Social Impact
• Governance

Environmental Achievements

• Implemented over 130 environmental projects to improve waste, water, and energy efficiencies, resulting in $4.6 million in expected annual savings.
• Reduced waste sent for treatment and disposal; materials sent for reuse now exceed total waste generated.
• Reduced plastic usage for nutrition product overcaps by 35%.

Social Achievements

• Partnered with Prabhat and TechnoServe to train nearly 1,500 smallholder dairy farmers in India, increasing high-quality milk production.
• Launched WomenFirst program in Russia to empower women with knowledge and support for health management.
• Implemented nutrition care programs in U.S. hospitals, reducing patient readmissions by 27% and shortening hospital stays by 25%.

Governance Achievements

• Continued to operationalize One Procurement strategy for supply chain management, enhancing margin and financial performance.
• Developed a more robust approach to auditing suppliers, identifying at-risk countries and informing survey programs.
• Increased spend with small, women-owned businesses by 2%.

Climate Goals & Targets

Environmental Challenges

• Climate change poses challenges to supply chain, operations, and distribution network.
• Water scarcity in some regions.
• Managing Scope 3 emissions (eight times Scope 1 and 2 combined).

Mitigation Strategies

• Set ambitious targets to reduce GHG emissions, water use, and waste by 2020.
• Implemented water conservation projects (e.g., water recycling in California facility).
• Joined CDP Supply Chain Program to encourage supplier emissions reduction.

Supply Chain Management

Supplier Audits: 17 on-site audits in 2016; 82% of suppliers obtained high or medium performance scores.

Responsible Procurement

• Supplier Social Responsibility (SSR) policy aligned with sustainability strategy.
• Green Procurement Policy encouraging environmentally preferable options.
• Supplier Guidelines outlining principles and expectations in ethical behavior, human rights, labor rights, environmental stewardship, and health and safety.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather patterns
• Water scarcity

Reporting Standards

Frameworks Used: GRI G4 Sustainability Reporting Guidelines, CDP

Certifications: ISO 14001, ISO 50001

Third-party Assurance: Bureau Veritas

Sustainable Products & Innovation

• FreeStyle® Libre glucose monitoring system.
• Alinity™ family of harmonized diagnostic instruments.
• New oral-solution version of thyroxine for India.

Awards & Recognition

• Inclusion in Dow Jones Sustainability Indices for 12 consecutive years (last four as Global Industry Group Leader).
• Named one of Clarivate Analytics' Top 100 Global Innovators for four consecutive years.
• Ranked No. 1 company overall and No. 1 for social responsibility in Medical Products and Equipment sector on Fortune Most Admired Companies 2016 list.
• Achieved an A- on CDP Climate Change score.
• Recognized as a Great Place to Work in multiple countries.
• Ranked No. 15 on the global 100 Best Corporate Citizens list.

Environmental Metrics

ESG Focus Areas

• Health and Well-being
• Environmental Sustainability
• Ethical Business Practices
• Community Development
• Employee Well-being

Environmental Achievements

• Reduced electricity consumption by 10% at Jhagadia plant through LED lighting, variable-frequency drives, and optimized drying equipment.
• Saved nearly 1,600 kiloliters of water annually at Baddi site through water reuse and reverse osmosis.
• Goa site introduced a rainwater harvesting system with the potential to collect more than 2,000 kiloliters of water.
• Jhagadia plant implemented Karnal Technology to reuse wastewater for irrigation, creating a 10-acre forest.
• Goa plant achieved Zero Waste to Landfill certification.

Social Achievements

• Launched the WINGS program to address gestational diabetes mellitus (GDM) in women, impacting over 2,100 pregnant women.
• Provided training and education to over 22,000 medical professionals.
• Supported over 1,500 dairy farmers through a sustainable supply chain initiative, nearly doubling milk production.
• Invested ₹3.4 crore (USD 500,000) in sanitation in Bharuch district, building 512 household toilets and seven community toilets.
• Distributed over ₹36.9 crore (USD 5.5 million) in nutritional and pharmaceutical products to communities in need.

Governance Achievements

• Implemented the Abbott Global Quality System, ensuring high standards of quality and safety in products and manufacturing.
• Established ethics and compliance training for all employees, covering anti-corruption and anti-commercial bribery laws.
• Developed a third-party compliance process to manage risks when doing business with third parties.

Climate Goals & Targets

Environmental Challenges

• Sourcing high-quality milk for nutrition products.
• Lack of sanitation in rural areas.
• High incidence of GDM and related health complications.
• Need for improved access to healthcare in rural areas.

Mitigation Strategies

• Partnered with Prabhat Dairy and TechnoServe to develop a sustainable dairy supply chain.
• Invested in sanitation infrastructure and community education programs.
• Launched the WINGS program to improve awareness, diagnosis, and care of GDM.
• Implemented various training and education programs for healthcare professionals.

Supply Chain Management

Responsible Procurement

• Abbott Supplier Guidelines

Climate-Related Risks & Opportunities

UN Sustainable Development Goals

• SDG 3: Good Health and Well-being
• SDG 6: Clean Water and Sanitation
• SDG 13: Climate Action

Abbott's initiatives contribute to these goals through improved healthcare access, sanitation improvements, and reduced environmental impact.

Sustainable Products & Innovation

• Ready-to-use Ensure® liquid formulations
• Easy-to-swallow liquid formulation of epilepsy treatment
• ProSure® with EPA for cancer patients
• LiDoCon® integrated dosing device

Awards & Recognition

• Pharmaleaders Most Valuable Pharmaceutical Group (2014)
• Brand Equity’s Most Trusted Brand (Digene®, 2014)
• Dow Jones Sustainability World Index (2017)
• Top Global Innovator (2017)
• IFC-Times Network Strategy Award (2018)
• Guinness World Record (2015)
• Porter Prize for Creating Shared Value (2016)
• Shared Value Initiative’s Inclusive Business List (2017)
• FICCI Award for Best Community Initiative (2017)
• India Pharmaceuticals Award (2015)
• Frost and Sullivan India Healthcare Excellence Award (2011-2015)
• Business Standard Star MNC of the Year (2015)
• Fortune India Most Admired Company (2014)
• Business Today Top Companies to Work For (2014, 2015)
• Golden Peacock Award for CSR (2015)
• Mint Institute Competitiveness Strategy Award (2014)

Environmental Metrics

ESG Focus Areas

• Climate Change

Environmental Achievements

• Achieved a 42 percent reduction in Scope 1 and 2 emissions (adjusted for sales) since 2010.
• Reduced 77,000 metric tons of CO2e in 2018 through purchasing renewable energy.
• Implemented 34 energy efficiency and air emissions reduction projects at 23 manufacturing sites globally.
• Reduced total annual waste production by 26 percent on an absolute basis and by 44 percent when adjusted for sales, compared to 2010 levels.

Social Achievements

• Not disclosed

Governance Achievements

• Board-level oversight of climate-related issues through the Public Policy Committee.
• Incentives for management of climate-related issues at all levels of the organization.

Climate Goals & Targets

Environmental Challenges

• Potential physical risks from extreme weather events and water scarcity impacting operations and supply chain.
• Transition risks related to emerging GHG emissions management expectations, including carbon limits and taxes.

Mitigation Strategies

• Integrated multi-disciplinary company-wide risk management process to assess and manage climate-related risks.
• Business continuity and crisis management plans to minimize financial impacts from physical climate-related risks.
• Strategies to reduce energy and carbon footprint in operations and engage value chain in strategic sourcing categories.
• Purchase of additional renewable electricity at several manufacturing locations.

Supply Chain Management

Supplier Audits: 30 supplier audits in 2018

Responsible Procurement

• Supplier Guidelines, Supplier Social Responsibility program, CDP supplier engagements, fuel-efficiency standard

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events, water scarcity

Transition Risks

• Regulatory changes, carbon taxes, costs to transition to lower emissions technologies

Opportunities

• Increased need for Abbott's products due to climate change impacts on health and disease

Reporting Standards

Frameworks Used: Greenhouse Gas Protocol

Certifications: ISO 14001, ISO 50001

Third-party Assurance: Third-party limited assurance

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Water
• Waste

Environmental Achievements

• Reduced Scope 1 and 2 emissions by 43% since 2010, adjusted for sales.
• Achieved a 14% reduction in total weight of packaging from 2010.
• Removed all coal-powered energy from operations in 2014.
• Implemented 49 energy efficiency and air emissions projects resulting in more than $750,000 annual cost savings and more than 34 million kilowatt-hours in annual energy savings.

Social Achievements

• Launched a Zero Waste to Landfill program, with 29 manufacturing and 7 non-manufacturing facilities achieving Zero Waste to Landfill status.

Governance Achievements

• Board-level oversight of climate-related issues through the Public Policy Committee.
• Incentives for management of climate-related issues at all levels of the organization.

Climate Goals & Targets

Environmental Challenges

• Potential physical risks from extreme weather events and chronic risks such as water scarcity.
• Transition risks related to emerging GHG emissions management expectations (carbon limits and taxes, enhanced emissions-reporting obligations, costs to transition to lower emissions technologies, and increased costs of goods and services).

Mitigation Strategies

• Integrated multi-disciplinary company-wide risk management process.
• Business Continuity and Crisis Management program.
• Regular risk and opportunity evaluations and implementation of mitigation strategies.
• Supplier engagement to improve supply chain resilience.
• Reducing energy and carbon footprint in operations.
• Investing in low-carbon fuels, cogeneration and renewable energy generation at facilities.

Supply Chain Management

Supplier Audits: 30 audits in 2019

Responsible Procurement

• Supplier Guidelines
• Environmental Procurement Guidelines
• Supplier Sustainability Survey
• DHL Resilience 360 Tool

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Water scarcity

Transition Risks

• Carbon limits and taxes
• Enhanced emissions-reporting obligations
• Costs to transition to lower emissions technologies
• Increased costs of goods and services

Opportunities

• Increased operating efficiencies from carbon reduction targets
• Meeting changing healthcare and nutrition needs

Reporting Standards

Frameworks Used: Greenhouse Gas Protocol

Certifications: ISO 14001, ISO 50001, LEED

Third-party Assurance: APEX

Environmental Metrics

ESG Focus Areas

• Climate Change
• Water
• Waste

Environmental Achievements

• Reduced absolute Scope 1 and 2 CO2e emissions by 5.8% from 2019 to 2020.
• Achieved a 51% reduction in Scope 1 and 2 emissions (adjusted for sales) since 2010.
• Reduced total waste footprint by 22% on an absolute basis and by 47% when adjusted for sales since 2010.
• Reduced total weight of packaging by 14.2% compared with 2010.

Social Achievements

• Not disclosed

Governance Achievements

• Board-level oversight of climate-related issues through the Public Policy Committee.
• Incentives for management of climate-related issues at all levels of the organization.

Climate Goals & Targets

Environmental Challenges

• Potential physical risks from extreme weather events and chronic risks such as water scarcity at site and regional levels.
• Transition risks related to emerging GHG emissions management expectations (carbon limits and taxes, enhanced emissions-reporting obligations, costs to transition to lower emissions technologies, and increased costs of goods and services).

Mitigation Strategies

• Integrated multi-disciplinary company-wide risk management process.
• Business Continuity and Crisis Management program.
• EHS management and governance systems.
• Supplier engagement to improve supply chain resilience.
• Investing in low-carbon fuels, cogeneration and renewable energy generation at facilities.
• Implementing energy efficiency projects.

Supply Chain Management

Supplier Audits: 6% of total tier 1 suppliers assessed within the last 3 years

Responsible Procurement

• Supplier Social Responsibility program
• Supplier Sustainability Survey
• Waste Supplier Assessment Program
• Chemicals & APIs Audit Program
• Dairy Supplier Animal Welfare Program
• Transportation Supplier Program
• Certified Palm Oil Program

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Water scarcity

Transition Risks

• Carbon limits and taxes
• Enhanced emissions-reporting obligations
• Costs to transition to lower emissions technologies
• Increased costs of goods and services

Opportunities

• Increased operating efficiencies from carbon reduction targets
• Meeting changing healthcare and nutrition needs

Reporting Standards

Frameworks Used: Greenhouse Gas Protocol

Certifications: ISO 14001, ISO 50001, LEED

Third-party Assurance: APEX

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Access and Affordability
• Health Equity
• Responsible Data
• Resilient Supply Chain
• Workforce Development
• Environmental Protection

Environmental Achievements

• 5% reduction in Scope 1 and 2 emissions (vs. 2018)
• 88.5% waste diversion rate
• 530,200 pounds of packaging impacted through sustainable design since 2020
• 8 million pounds of packaging impacted through initiatives

Social Achievements

• Increased malaria screening by 68% in Rwanda
• Provided decentralized healthcare services to over 705,000 people globally
• Launched FreeStyle Libre 3, the world’s smallest, most accurate continuous glucose monitoring (CGM) sensor
• 40% of global management positions filled by women
• 33% of leadership roles held by people from underrepresented groups
• 163,315 development and job opportunities for current and future employees
• Expanded Employee Assistance Program to four new countries

Governance Achievements

• Enhanced proxy disclosure, highlighting a strong link between executive compensation and sustainability
• Published a formal commitment to customer and patient privacy and information protection
• Established a coordinated vulnerability disclosure program
• Tied executive compensation to sustainability efforts

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to COVID-19
• Increased Scope 1 and 2 emissions due to production expansion
• Water intake increase due to increased production
• Waste production increase due to increased production and expansion projects

Mitigation Strategies

• Built inventory of raw materials and finished goods
• Monitored performance at manufacturing sites in COVID-19 hotspots
• Implemented operational energy-efficient improvements
• Purchased 190 million kWh of low-carbon and renewable energy
• Implemented initiatives to reduce fuel consumption in commercial fleet
• Designed for sustainability, eliminating material use and reducing landfill waste
• Achieved Zero Waste-to-Landfill certification at additional sites

Supply Chain Management

Supplier Audits: Approximately 61% of Tier 1 suppliers participate in third-party auditing programs; 100% of suppliers assessed for sustainability risk

Responsible Procurement

• Supplier Guidelines
• Social responsibility clause in direct material contracts
• Green Procurement Guidelines
• Supplier Diversity Guidelines
• Water Policy
• Climate Responsible Energy Guidelines
• Animal Welfare Policy
• Position Statement on Conflict Minerals

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Water scarcity

Transition Risks

• Carbon limits and taxes
• Enhanced reporting obligations
• Costs to transition to lower-emissions technologies

Opportunities

• Increased operating efficiencies through carbon reduction
• Meeting changing healthcare needs related to climate change

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UNGC

Certifications: ISO 14001, ISO 45001, ISO 50001

Third-party Assurance: Apex Companies

UN Sustainable Development Goals

• Goal 1 (No Poverty)
• Goal 2 (Zero Hunger)
• Goal 3 (Good Health and Well-being)
• Goal 4 (Quality Education)
• Goal 5 (Gender Equality)
• Goal 6 (Clean Water and Sanitation)
• Goal 8 (Decent Work and Economic Growth)
• Goal 12 (Responsible Consumption and Production)

Abbott's initiatives contribute to these goals through various programs and activities as detailed in the SDG Index

Sustainable Products & Innovation

• FreeStyle Libre 3
• Ultreon 1.0 software
• i-STAT Alinity TBI Plasma test

Awards & Recognition

• Fast Company’s 2021 World Changing Ideas
• Dow Jones Sustainability Index
• DiversityInc’s Top 50
• Vault’s 50 Best Internships
• JUST Capital’s 2022 JUST 100
• Drucker Institute Management Top 250
• The Edison Awards

Environmental Metrics

ESG Focus Areas

• Climate Change
• Water
• Waste
• Packaging
• Supplier Sustainability

Environmental Achievements

• Reduced absolute Scope 1 and 2 emissions by 0.4% compared to 2021; 1.7% reduction when adjusted for sales.
• Implemented 80 energy efficiency and air emission reduction projects, resulting in $2,771,000 annual cost savings and 27 million kWh in annual energy savings, preventing approximately 7,000 metric tons of carbon emissions.
• Achieved 90% waste diversion rate.
• 39 manufacturing and 12 non-manufacturing facilities certified under Zero Waste-to-Landfill program.

Social Achievements

• Engaged 159 suppliers (covering 29% of supplier spend) through Abbott’s Supplier Sustainability Due Diligence Program to identify opportunities for carbon reductions.

Governance Achievements

• Board-level oversight of climate-related issues.
• Incentives for management linked to emissions reduction, energy consumption, water consumption, waste reduction, and renewable energy use.

Climate Goals & Targets

Environmental Challenges

• Acute and chronic physical risks associated with climate change (extreme weather events, water stress, sea level rise, higher average temperatures).
• Transition risks related to emerging expectations and regulations around GHG emission measurement, management, and reporting.

Mitigation Strategies

• Business Continuity and Crisis Management programs to strengthen business resiliency against extreme disruption.
• Strategies for minimizing the impact of and responding to risks across the supply chain.
• Monitoring emerging climate-related trends and regulations to develop and implement appropriate risk management strategies.
• Scenario analyses considering COP21 outcomes, potential carbon taxes, water scarcity, and impacts to agricultural supply chains.
• Supplier engagement to improve supply chain resilience and business continuity.

Supply Chain Management

Responsible Procurement

• Abbott Supplier Guidelines, including expectations for environmental responsibility, resource conservation, avoidance of hazardous materials, and promotion of a circular economy.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Water stress
• Sea level rise
• Higher average temperatures

Transition Risks

• Emerging regulations around GHG emission management, including carbon limits and taxes, enhanced reporting obligations, costs to transition to lower-emissions technologies, and increased costs of goods and services.

Opportunities

• Increased operating efficiencies through achieving carbon reduction targets.
• Meeting changing healthcare and nutrition needs.

Reporting Standards

Frameworks Used: GRI, TCFD, Greenhouse Gas Protocol

Certifications: ISO 14001:2015, ISO 50001:2018

Environmental Metrics

ESG Focus Areas

• Access and Affordability
• Workforce
• Data
• Supply Chain
• Environment
• Ethics and Governance

Environmental Achievements

• 7% absolute reduction in Scope 1 and 2 emissions in 2023 (versus 2018 baseline)
• 91% waste diversion rate in 2023
• Four additional sites achieved water stewardship certification in 2023, bringing the total number of Abbott manufacturing sites to six.

Social Achievements

• Delivered Future Well Kids program to more than 1,900 students across five countries
• Provided decentralized healthcare services, helping more than 1.2 million people access healthcare
• Created more than 31,000 STEM opportunities globally for young people in 2023 — 55% from underrepresented groups

Governance Achievements

• Developed an executive-level cross-functional Data Use and Ethics Board
• Obtained industry data security certifications for key Abbott online solutions
• 99.7% of active employees completed the annually assigned Code of Business Conduct training course and certification

Climate Goals & Targets

Environmental Challenges

• Reducing Scope 3 emissions (92% of Abbott’s carbon footprint)
• Ensuring ethical sourcing from all suppliers with high-risk sustainability factors
• Addressing water quality and quantity risks in water-stressed areas

Mitigation Strategies

• Engaging key carbon-intensive suppliers to implement Scope 3 reductions
• Screening 90% of direct material suppliers by spend for inherent sustainability risk
• Engaging with suppliers to reduce risks to water quality and quantity

Supply Chain Management

Supplier Audits: 90% of direct suppliers by spend screened for inherent sustainability risk in 2023

Responsible Procurement

• Abbott Supplier Guidelines

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UN SDG

Certifications: ISO 13485, ISO 9001, ISO 14001, ISO 22000, SQF

Awards & Recognition

• Dow Jones Sustainability Indices Top industry score for 11 years
• America’s Most Just Companies #1 in our industry
• The Wall Street Journal Management Top 250 Companies Ranked #28 overall, #13 in innovation, and #16 in social responsibility
• Fortune Magazine 2023 Most admired company in our industry
• DiversityInc Top 50 Companies for Diversity 20 consecutive years in 2023