Climate Change Data

Environmental Metrics

ESG Focus Areas

• Access to healthcare
• Environmental sustainability

Social Achievements

• Healthy Heart Africa program to improve lives of hypertensive patients in Africa

Governance Achievements

• Maintained listing in Dow Jones Sustainability World Index and European Index

Climate Goals & Targets

Environmental Challenges

• Pricing pressures, patent expiries, regulatory requirements in the pharmaceutical industry
• Disappointing 15th position in Access to Medicine Index

Mitigation Strategies

• Reviewing performance in Access to Medicine Index to understand how to improve through greater transparency and specific initiatives to enhance affordability and access to AstraZeneca medicines
• Implementing the Healthy Heart Africa program

Supply Chain Management

Responsible Procurement

• Sustainability considerations integral part of due diligence process for acquisitions and partnerships; assessment against ‘5Rs’ evaluation criteria (right target, right tissue or exposure, right safety, right patients, right commercial)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Global Compact

Environmental Metrics

ESG Focus Areas

• Access to healthcare
• Environmental protection
• Ethics and transparency

Environmental Achievements

• Reduced operational GHG footprint by 5% from 2015 baseline to 1,656,917 metric tonnes in 2016
• Reduced water consumption by 5% compared with 2015
• Increased sourcing of certified zero carbon power from renewable sources to 58% of global imported power
• 100% of API syntheses (avibactam) met launch target for resource efficiency
• Achieved 9% reduction in process mass intensity (PMI) across the portfolio
• Safe API discharges confirmed for 100% of own and >90% globally managed supplier sites

Social Achievements

• 4.49 million patients in Emerging Markets served by patient access programmes
• Reached 166,000 young people in 2016 and 1.6 million youth since 2010 through Young Health Programme
• Conducted over 2.7 million hypertension screenings and started treatment for over 100,000 hypertensive patients through Healthy Heart Africa
• 100% of active employees trained on the Code of Conduct
• Increased representation of women in senior roles to 43.2%
• Reduced total injury rate to 1.45, exceeding the annual target of 1.64
• Reduced collision rate to 3.62, exceeding the annual target of 4.00
• Over 70,000 patients connected to AstraZeneca research and development through PatientsLikeMe

Governance Achievements

• Conducted 66 high-risk supplier audits
• Implemented new global standards giving patients and researchers more information about research
• Resolved US Foreign Corrupt Practices Act investigation with a civil settlement

Climate Goals & Targets

Environmental Challenges

• Decoupling waste generation from business and employment growth
• Maintaining a high employee survey score amidst business reshaping
• Addressing gaps in meeting ILO minimum standards in some countries
• Managing the illegal trade in medicines

Mitigation Strategies

• Innovation and investment in waste reduction
• Focus on improving areas identified as important drivers of employee engagement
• Developing plans to address gaps in ILO minimum standards
• Strengthening supply chain security, collaborating with stakeholders, and investigating illegal trade cases

Supply Chain Management

Supplier Audits: 8,977 supplier assessments in 2016, 66 high-risk supplier audits

Responsible Procurement

• Global Standard Expectations of Third Parties
• Supplier assessments
• Training and support for suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Water scarcity
• Extreme weather events

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Renewable energy
• Energy efficiency improvements

Reporting Standards

Frameworks Used: GRI, UNGC, CDP, Science Based Targets initiative, RE100, Access to Medicine Index, Dow Jones Sustainability Index

Certifications: ISO 14001, ISO 50001

UN Sustainable Development Goals

• Goal 3 (Good Health and Well-being)
• Goal 4 (Quality Education)
• Goal 5 (Gender Equality)
• Goal 6 (Clean Water and Sanitation)
• Goal 7 (Affordable and Clean Energy)
• Goal 9 (Industry, Innovation and Infrastructure)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)
• Goal 15 (Life on Land)
• Goal 17 (Partnerships for the Goals)

AstraZeneca highlights how its initiatives contribute to these goals throughout the report.

Sustainable Products & Innovation

• Tagrisso™ (reduced PMI and hazardous waste)
• Symbicort Smartinhaler™ (improved patient adherence, reduced hospital admissions)

Awards & Recognition

• CDP Climate A List
• CDP Water A List
• CDP Supplier Climate A List
• Dow Jones Sustainability Index (86% score)
• Access to Medicine Index (7th place)

Environmental Metrics

ESG Focus Areas

• Broadening access to healthcare
• Furthering ethics and transparency
• Protecting the environment

Environmental Achievements

• Operational carbon footprint met target of progressing Science Based Targets and represents a 7% reduction from 2015 baseline (1,659 kt CO₂e)
• Reduced energy consumption by 3% to 1,742,325 MWh
• Reduced water use by 10% to 3.89 million m³
• Gothenburg site transitioned to renewable electricity in 2016 and implemented sustainable heat pump technology, saving approximately 2,500 tonnes of CO₂ equivalent per year.

Social Achievements

• Healthy Heart Africa programme reached 5.7 million people with blood pressure screenings
• Launched Healthy Lung Asia programme
• Young Health Programme reached nearly 427,000 young people with health information on NCDs
• Increased representation of women in senior roles to 44.4%
• 100% of employees trained in new Code of Ethics

Governance Achievements

• Launched updated Code of Ethics
• Six confirmed breaches of external sales and marketing regulations or codes (same as 2016)

Climate Goals & Targets

Environmental Challenges

• Continued competition from branded and generic medicines
• Pricing and reimbursement challenges in many markets (including US and Europe)
• Uncertainty of Brexit
• Loss of exclusivity for key medicines (Crestor, Seroquel XR, Symbicort)
• Employee retention challenges in specific areas

Mitigation Strategies

• Focus on Growth Platforms
• Demonstrating value of medicines
• Engaging with stakeholders and taking actions to mitigate Brexit risks
• Investment in innovative research and development
• Targeted recruitment and retention strategies
• More effective hiring and induction, exit interviews, risk assessments and retention plans

Supply Chain Management

Supplier Audits: 41 audits on high-risk suppliers

Responsible Procurement

• Global Standard for the Procurement of Goods and Services
• Training for procurement professionals
• Global Standard Expectation of Third Parties

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, CDP

Third-party Assurance: Bureau Veritas

Awards & Recognition

• Healthcare Businesswomen’s Association 2017 Woman of the Year
• TOPRA 2017 Communication Award

Environmental Metrics

ESG Focus Areas

• Access to healthcare
• Environmental protection
• Ethics and transparency

Environmental Achievements

• 11% reduction in Scope 1 and 60% reduction in Scope 2 greenhouse gas emissions since 2015
• 18% reduction in water use since 2015
• 62% of total electricity use is sourced or generated from renewable sources
• 97% of active pharmaceutical ingredient discharges from direct suppliers demonstrated as safe

Social Achievements

• 86% of employee survey respondents feel that AstraZeneca is a Great Place to Work
• 19.8m+ people reached through our access programmes (cumulative)
• 81,000+ healthcare workers trained (cumulative)
• 45.4% women in senior middle management roles or higher

Governance Achievements

• Launched an online interactive map showing information on site operations, suppliers, Access to healthcare programmes, and demographics
• 63.3 instances of non-compliance with the Code of Ethics per thousand employees in commercial regions
• 80% of employee survey respondents feel that AstraZeneca has a ‘Speak Up’ culture

Climate Goals & Targets

Environmental Challenges

• Many of the factors that impact NCDs, such as smoking, drinking, sedentary lifestyles and poor diet, can result from lifestyle choices or other social and environmental determinants of health.
• The health benefits of prevention and treatment can often take many years to materialise, meaning the outcomes are not immediate.
• Supply chains are complex. This poses challenges for improving capabilities, which are most effective when done in collaboration with peers.

Mitigation Strategies

• Taking a systemic approach requires time, especially to cultivate impactful relationships.
• We need to find a way to continue to integrate prevention into our business model in order to address this issue comprehensively.
• We aim to collaborate with industry in an effort to reduce duplication of the industry’s suppliers’ efforts to report on their sustainability performance.

Supply Chain Management

Supplier Audits: 89% spend through our third-party risk management programme

Responsible Procurement

• Global Standard Expectations of Third Parties
• Sustainability Partner Guide and Framework

Climate-Related Risks & Opportunities

Physical Risks

• Droughts
• Floods
• Extended hot periods

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI, Null, Null, UNGC

Certifications: ISO 14001, ISO 45001, ISO 50001

Third-party Assurance: Bureau Veritas

UN Sustainable Development Goals

• SDG 3
• SDG 5
• SDG 8
• SDG 12
• SDG 13
• SDG 17

Our ambitions for 2025 connect to human health, environmental protection, and ethics and transparency.

Sustainable Products & Innovation

• Next-generation inhaler with near-zero Global Warming Potential propellant

Awards & Recognition

• CDP Climate Change 'A' List
• CDP Water Security 'A' List
• Bloomberg Gender Equality Index
• Human Rights Campaign's Corporate Equality Index (100)

Environmental Metrics

ESG Focus Areas

• Access to healthcare
• Environmental protection
• Ethics and transparency

Environmental Achievements

• Sourced 99.9% of our imported electricity globally from renewable sources in 2020
• Reduced Scope 1 and 2 greenhouse gas (GHG) footprint by 60% from our 2015 baseline

Social Achievements

• Reached 25 million people through access to healthcare programmes
• Employees volunteered more than 28,000 hours on community projects globally
• 46.9% of our senior roles are filled by women

Governance Achievements

• 100% of all active employees completed the annual training on the Code of Ethics
• Zero critical observations from 14 independent inspections of manufacturing facilities

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting patient access, clinical trials, and supply chains
• Pricing pressures from governments and payers in various markets
• Generic competition impacting sales of some established products
• Brexit uncertainty impacting supply chains and operations

Mitigation Strategies

• Activated business continuity plans to maintain supply of medicines
• Leveraged digital technologies to maintain clinical trials and patient care
• Developed alternative sourcing strategies
• Engaged with governments and regulators to address pricing and supply chain issues
• Implemented cost-saving measures

Supply Chain Management

Supplier Audits: 48 audits on high-risk suppliers

Responsible Procurement

• Global Standard for the Procurement of Goods and Services
• Global Standard Expectation of Third Parties

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: TCFD

Third-party Assurance: Bureau Veritas

Sustainable Products & Innovation

• Next-generation respiratory inhalers with near-zero GWP propellants

Environmental Metrics

ESG Focus Areas

• Water Stewardship
• Environmental Protection
• Access to Healthcare
• Ethics and Transparency

Environmental Achievements

• Reduced water use by 17% from 2015 levels by 2021 despite expected revenue doubling.
• 100% of API discharges from AstraZeneca sites met safe discharge standards in 2021.
• 90% of API discharges from globally managed direct suppliers demonstrated as safe in 2021 (with minor exceptions subsequently addressed).

Social Achievements

• Partnership with WWF to analyze water risks and strengthen water stewardship program.
• Partnership with Environmentalist Foundation of India (EFI) to restore lakes and ponds in Chennai.
• Supporting basin-level collective action and innovations.

Governance Achievements

• Implementation of a standard methodology to assess water risk across the site network using the WWF Water Risk Filter Tool.
• Introduction of a water stewardship pilot program at 6 key sites in 2021.
• Development of site-specific water stewardship plans.

Climate Goals & Targets

Environmental Challenges

• Decreasing water quality and scarcity present direct risks to operations, potentially causing production shutdowns.
• Water demand exceeding supply in many areas.
• Potential damage to license to operate during periods of water scarcity.
• Pharmaceutical residues entering the environment through patient use and improper disposal.

Mitigation Strategies

• Focusing on water use within site boundaries, understanding local water risks, and establishing site-specific water stewardship plans.
• Implementing water efficiency projects (improved metering, low-flow fittings, upgraded equipment, rainwater harvesting, water reuse).
• Developing a standard methodology to assess water risk.
• Applying safe discharge limits for APIs in manufacturing and supply chain.
• Using ecopharmacovigilance to review environmental risks associated with products.
• Partnering with suppliers to build sustainability capabilities and hold them to high standards.

Supply Chain Management

Supplier Audits: 75 supplier assessments (4 not submitted, 1 exceeded limit, subsequently addressed)

Responsible Procurement

• Global Standard Expectations of Third Parties
• Sustainability Partner Guide and Framework

Climate-Related Risks & Opportunities

Physical Risks

• Drought
• Flooding

Reporting Standards

Frameworks Used: TCFD

UN Sustainable Development Goals

• SDG 6: Clean Water and Sanitation

AstraZeneca's water stewardship work supports SDG 6 through water efficiency improvements, pollution reduction, and community engagement.

Environmental Metrics

ESG Focus Areas

• Access to healthcare
• Environmental protection
• Ethics and transparency

Environmental Achievements

• Reduced Scope 1 and 2 greenhouse gas emissions by 59.3% since 2015
• Total energy use was 1,636,031 MWh, representing a 14% reduction from the 2015 baseline.
• Water footprint was 3.75 million m3, a 18.7% reduction from 2015.
• Total waste was 25,493 tonnes, representing a decrease of 18.6% from 2015.
• 91% of all electricity use came from renewable sources in 2022.
• 97.5% of paper-based product packaging materials used were sourced from sustainably managed forests

Social Achievements

• More than 44.63 million people reached (cumulative) through access to healthcare programmes
• More than 126,000 healthcare workers trained (cumulative)
• 83% of employee survey respondents feel we have a 'speak up' culture.
• 100% of active employees trained on the Code of Ethics in 2022.
• 72% reduction in reportable injury rate since 2015.

Governance Achievements

• All suppliers are required to work in accordance with our Code of Ethics and Expectations of Third Parties.
• 53% of our spend with suppliers is now with companies who have been assessed by EcoVadis to have an acceptable ESG rating (45 or more).

Climate Goals & Targets

Environmental Challenges

• Lagging on 100% electric road fleet target due to lack of basic infrastructure in some markets.
• Lagging on resource efficiency target for 90% of total syntheses meeting resource efficiency targets at launch.
• Lagging on Scope 3 GHG emissions reduction targets for categories 7 and 8.

Mitigation Strategies

• International markets 100% EV target under review; target remains in place for USA, EUCAN and Japan markets.
• Integrated data from monoclonal antibody (mAb) products; PMI reduction of 23% across the late stage project portfolio.
• Significant increase in use of primary data and suppliers setting Science Based Targets will support future absolute emissions reductions towards 2030 target.

Supply Chain Management

Supplier Audits: 9,481 total supplier assessments in 2022

Responsible Procurement

• Code of Ethics and Expectations of Third Parties
• EcoVadis assessments

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: SASB, GRI, TCFD

Certifications: My Green Labs

Third-party Assurance: Bureau Veritas

UN Sustainable Development Goals

• SDG 3
• SDG 5
• SDG 6
• SDG 7
• SDG 8
• SDG 12
• SDG 13
• SDG 15
• SDG 17

Mapped the SDG targets against our performance. More information about our contribution to the UN SDGs can be found in the 2022 Sustainability Report.

Sustainable Products & Innovation

• Next-generation inhaler with near-zero GWP propellant

Awards & Recognition

• C-SAW Global 3Rs Awards

Environmental Metrics

ESG Focus Areas

• Access to healthcare
• Environmental protection
• Ethics and transparency

Environmental Achievements

• 67.6% reduction in Scope 1 and 2 GHG emissions since 2015 baseline
• 35% reduction in water use since 2015 baseline
• 19 million trees planted across six continents since 2020
• 98% reduction in emissions from global operations and fleet (Scope 1 and 2) by 2026 (target)
• Halving entire value chain footprint (absolute Scope 3 GHG emissions) by 2030 (target)

Social Achievements

• 66 million+ people reached through access to healthcare programmes (cumulative)
• 115 million+ USD total community investment
• 127,300+ healthcare workers trained since 2010
• 10 million people with elevated blood pressure reached through Healthy Heart Africa
• 15 million+ young people reached through the Young Health Programme since 2010

Governance Achievements

• My Green Lab Certification awarded to 41 labs globally
• Transition to paperless product information leaflets
• Global Privacy Standard, Global Standard on the Ethical Use of AI, and internal data and AI governance committees and Enterprise AI Governance Framework implemented

Climate Goals & Targets

Environmental Challenges

• Climate change impacts on health systems
• Health inequities and access to healthcare
• Decarbonising the healthcare sector (approximately 5% of global GHG emissions)
• Water risks in supply chain
• Data privacy and protection in the age of AI

Mitigation Strategies

• Ambition Zero Carbon strategy ($1 billion investment)
• Partnerships to expand access to renewable energy (e.g., biomethane, RNG)
• Healthy Heart Africa programme
• Cancer Care Africa programme
• Investing in nature-based solutions (AZ Forest)
• Improving water stewardship
• Global Privacy Standard, Global Standard on the Ethical Use of AI, and internal data and AI governance committees and Enterprise AI Governance Framework

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Science-based targets for key suppliers
• Collaboration on renewable energy access

Climate-Related Risks & Opportunities

Physical Risks

• Climate-related deaths from air pollution, extreme temperatures, flooding and drought

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products
• Renewable energy sourcing

Reporting Standards

Frameworks Used: Science Based Targets initiative (SBTi)

Certifications: My Green Lab Certification

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 3: Good Health and Well-being
• Goal 7: Affordable and Clean Energy
• Goal 13: Climate Action
• Goal 15: Life on Land

Initiatives contribute to these goals through improved healthcare access, renewable energy use, emissions reduction, and biodiversity conservation.

Sustainable Products & Innovation

• Respiratory inhalers with reduced climate impact
• ePI (electronic Product Information)

Awards & Recognition

• Sustainable Lab of the Year (Lab Innovations)
• Green Lab Certification (My Green Lab)