Climate Change Data

Environmental Metrics

ESG Focus Areas

• Improving people’s lives
• Business ethics
• Diversity and human capital management
• Environment, health, and safety

Environmental Achievements

• Decommissioned one radio-isotope laboratory in Mechelen, replacing it with fluorescence and luminescence-based technologies, reducing toxic and dangerous waste flows.
• Rolled out company-wide Skype video meetings to reduce business travel.

Social Achievements

• Attracted 125 new employees (21% increase from 2017).
• Maintained a healthy balance in workforce diversity, with 61% female staff overall.
• Over 10% of internal R&D staff experienced personal growth through promotion or new assignments.
• Raised EUR 27,578 for charity.
• Implemented a new travel policy.
• Strengthened the human resources team to build an innovative workplace strategy.
• Streamlined the onboarding process, including assigning mentors to new employees.
• Implemented a focus on four core values (Act as a pioneer, Raise the bar, Embrace change, and Make it happen) in recruiting, onboarding, and development programs.

Governance Achievements

• Formalized clinical trials ethics policy.
• Established a compassionate use policy.
• Trained 93% of employees in codes of conduct (including insider trading) and Sarbanes-Oxley requirements.
• Completed an Animal Welfare Agency audit with no citations.
• Completed environmental audits in Leiden and Mechelen with no major citations.
• Completed compliance reviews for health and safety and environment in Leiden, Mechelen, and Romainville sites, implementing improvement action plans.

Climate Goals & Targets

Environmental Challenges

• Limited environmental impact due to lack of production sites and buildings.
• Need to further reduce environmental impact and improve EHS efforts.

Mitigation Strategies

• Hired a full-time EHS Manager to assess current efforts and establish an improvement roadmap.
• Established a company-wide EHS framework based on ISO 45001 and ISO 14001.
• Implemented actions to address improvement items identified in compliance reviews.
• Planned to establish green car options and exclusive use of green energy at Mechelen site in 2019.

Supply Chain Management

Responsible Procurement

• Suppliers required to adhere to contractual terms including anti-bribery and anti-corruption provisions.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Standards (SRS), European Federation of Financial Analysts Societies Guideline for the Integration of ESG into Financial Analysis and Corporate Valuation

Environmental Metrics

ESG Focus Areas

• Improving people’s lives
• Our employees
• Conducting business ethically and responsibly
• We care about the environment, health and safety

Environmental Achievements

• Installed beehives on the roof of our building in Mechelen
• Improved recycling of electric and electronic laboratory waste material at our site in Romainville
• Improved chemical safety by the implementation of software to support risk assessments for dangerous chemicals at our site in Leiden
• Reduced paper usage through digitalization

Social Achievements

• Attracted 504 new employees in 2020, 58% of the hires were female
• Improved talent-scouting model during COVID-19
• Sharpened, digitized, and branded the Galapagos career site
• Made onboarding approach and program more efficient
• Implemented engagement initiatives to create team-cohesion and strengthen the feeling of belonging
• Engaged with local communities and charities through a “We Care” initiative
• Promoted a career in science through STEM initiatives
• 2.2% turnover of employees for the Galapagos group

Governance Achievements

• Implemented an Animal Welfare Committee
• 93.5% of employees completed training on Code of Business Conduct and Ethics
• Strengthened EHS Governance Structure and expert skills

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impact on R&D efforts and operations
• Maintaining a safe work environment during the pandemic

Mitigation Strategies

• Provided additional electronics to facilitate working from home
• Organized online mindfulness moments
• Paid a stipend to cover additional home costs
• Coordinated “license to work” conditions during the COVID-19 pandemic by performing risk analysis and defining safe conditions to work on site as well as from home

Supply Chain Management

Responsible Procurement

• CSR criteria in vendor selection
• Anti-bribery and anti-corruption provisions in contracts

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Sustainable Development Goals (SDGs)

Certifications: ISO 14001, ISO 45001

UN Sustainable Development Goals

• Good health and well-being
• Quality education
• Gender equality
• Decent work and economic growth
• Industry, innovation and infrastructure
• Reduced inequalities
• Climate action
• Partnerships for the goals

The report links material aspects and engagement areas to selected aspects of the SDG framework.

Environmental Metrics

ESG Focus Areas

• Driving innovation
• Our employees
• Conducting business ethically and responsibly
• We care about the environment, health, and safety

Environmental Achievements

• Issued a global environmental, health and safety (EHS) policy
• No fatalities because of work-related injuries or work-related ill-health were reported, nor were there any high-consequence work-related injuries.

Social Achievements

• Improved candidate experience
• Refined onboarding process
• Launched GalapagosHealth.com, a hybrid engagement environment for healthcare professionals
• Developed the Patient Partnership Charter
• Celebrated International Day of Women and Girls in Science
• Included in the 2022 Bloomberg Gender-Equality Index
• Launched a digital challenge on social media to spark STEM with young people
• Transformed annual Company Day into a cross-site 'We Care' initiative engaging with social and nature conservation organizations

Governance Achievements

• Refined Code of Conduct
• 93.5% of employees completed training on the new Code of Conduct
• Launched the Galapagos Clinical Trials Portal
• Redesigned Informed Consent template in accordance with Health Literacy principles

Climate Goals & Targets

Environmental Challenges

• Pipeline setbacks leading to rightsizing of R&D and Shared Services departments
• COVID-19 pandemic impacting operations and employee well-being

Mitigation Strategies

• Invested in regular communication plans and Q&A sessions with senior leaders
• Provided additional electronic equipment, online mindfulness sessions, and stipends to cover additional costs of working from home during the pandemic
• Focused on enhancing employee performance and potential through development programs
• Implemented global travel guidelines and guidance on organizing and attending internal and external events to mitigate pandemic risks

Supply Chain Management

Responsible Procurement

• CSR criteria included in vendor selection process
• Anti-bribery and anti-corruption provisions in contractual terms with suppliers

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Sustainable Development Goals (SDGs)

UN Sustainable Development Goals

• Good health and well-being
• Partnerships for the goals
• Quality education
• Gender equality
• Decent work and economic growth
• Industry, innovation and infrastructure
• Reduced inequalities
• Climate action

Material aspects linked to selected SDGs

Awards & Recognition

• 2022 Bloomberg Gender-Equality Index

Environmental Metrics

ESG Focus Areas

• Patients
• People
• Planet
• Trust & Transparency

Environmental Achievements

• Obtained BREEAM Excellent and WELL Gold certification for new building in Oegstgeest, Netherlands.
• Defined carbon footprint of value chain (to be disclosed in 2023).
• Defined roadmap to become climate neutral by 2028.

Social Achievements

• Launched "Make it Happiness" global wellbeing program.
• No fatalities or high-consequence work-related injuries reported.
• Included in the 2023 Bloomberg Gender-Equality Index for the fourth year in a row.
• Overall wellbeing met or exceeded Belgian benchmark in majority of questions in employee survey.

Governance Achievements

• Established a Sustainability Steering Committee.
• 97.1% of employees completed Code of Conduct training.
• Launched Speak Up, Listen Up program.
• Launched anti-harassment and anti-discrimination policy (to be implemented in 2023).

Climate Goals & Targets

Environmental Challenges

• Reducing greenhouse gas emissions.
• Becoming climate neutral by 2028.

Mitigation Strategies

• Implementing initiatives to replace fossil fuels with renewable energy sources, improve energy efficiency, and drive behavioral change.

Supply Chain Management

Responsible Procurement

• Enhanced risk assessment framework and due diligence on quality, IT security, data protection and privacy, compliance and ethics, and environment.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Sustainable Development Goals (SDGs), Corporate Sustainability Reporting Directive (CSRD)

Certifications: ISO 14001, ISO 45001, BREEAM, WELL

UN Sustainable Development Goals

• Good Health and Well-being
• Quality Education
• Gender Equality
• Decent Work and Economic Growth
• Industry, Innovation and Infrastructure
• Reduced Inequalities
• Climate Action

The report links material aspects and engagement areas to selected aspects of the SDG framework.

Awards & Recognition

• Bloomberg Gender-Equality Index

Environmental Metrics

ESG Focus Areas

• Patients
• People
• Planet
• Trust & Transparency

Environmental Achievements

• Launched a new mobility strategy aimed at accelerating the electrification of our car fleet and offering alternative transportation modes. In Belgium, all new fleet vehicles must be fully electric as of 1 May 2024.
• 25% of total energy needs covered by renewable sources in 2023.
• 23% of the heated surface used by Galapagos was BREEAM or WELL certified.

Social Achievements

• Completed the integration of the CellPoint and AboundBio teams into Galapagos with a robust onboarding program.
• Included in the 2023 Bloomberg Gender-Equality Index for the fourth year in a row.
• Rolled out a new initiative of “Team Boosters, ” offsite team development sessions to boost engagement and belonging.
• Galapagos employees and leaders attended more than 4,500 Galapagos learning and development events (excluding Compliance training, conferences and on-the-job learning).
• Enhanced employee offerings at both the international and country level (expanded information about total rewards, stock-based awards, improved local benefits).

Governance Achievements

• Launched a Speak up, Listen Up program.
• Launched an anti-harassment and anti-discrimination policy.
• 94% of employees completed Code of Conduct training.
• Third-Party Risk Assessment (TPRA) process for onboarding new vendors is mandatory.
• External screening of 100 preferred suppliers, checking different risk factors, including ESG indicators.

Climate Goals & Targets

Environmental Challenges

• Significant change and continued transformation for Galapagos impacting employees.
• Transfer of Jyseleca® business to Alfasigma, including approximately 400 Galapagos positions.
• Restructuring affecting 100 positions across European sites.
• Three animal welfare incidents identified.

Mitigation Strategies

• Company-wide survey to understand the impact of changes on company values and culture.
• Robust onboarding program for integrating new teams.
• Investigation of animal welfare incidents and implementation of remediation measures.
• On-site visits planned to verify effectiveness of implemented actions.

Supply Chain Management

Supplier Audits: Regular audits of GxP manufacturers and distributors; External screening of 100 preferred suppliers.

Responsible Procurement

• Enhanced risk assessment framework and due diligence on quality, IT security, data protection and privacy, compliance and ethics, and environment for third-party onboarding.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Sustainable Development Goals (SDGs), UN Global Compact, EU Taxonomy Regulation, EU Sustainability Reporting Standards (ESRS)

Certifications: ISO 14001, ISO 45001

UN Sustainable Development Goals

• SDG 3: Good health and well-being
• SDG 17: Partnerships for the goals
• SDG 4: Quality education
• SDG 5: Gender equality
• SDG 8: Decent work and economic growth
• SDG 9: Industry, innovation and infrastructure
• SDG 10: Reduced inequalities
• SDG 13: Climate action

Galapagos links its material aspects and engagement areas to select components of the SDG framework.

Awards & Recognition

• Bloomberg Gender-Equality Index