Climate Change Data

Environmental Metrics

ESG Focus Areas

• Responsible and ethical business conduct
• Building an agile organization
• Environmental stewardship and sustainability
• Providing access to epilepsy care in resource-poor countries
• Employee engagement

Environmental Achievements

• Overall energy consumption decreased by 25%
• Overall scope-1 and scope-2 CO2 emissions were reduced by 40%
• Water consumption at UCB facilities decreased by 12%
• Waste generated at UCB facilities decreased by 11%
• 97% of waste was recovered

Social Achievements

• Invested €15.9 million in training and development
• Launched several initiatives to improve access to epilepsy care in resource-poor countries
• 87% participation rate in UCB Voices employee engagement survey
• €4.25 million spent in community sponsorships and charitable donations

Governance Achievements

• 89% of colleagues completed Code of Conduct training
• No significant risks related to human rights, anti-corruption, or anti-bribery identified
• Three complaints received for deviation to industry voluntary codes regarding good promotional practices, with appropriate preventative actions identified

Climate Goals & Targets

Environmental Challenges

• Changes in healthcare systems and increased pressure
• Increasing environmental footprint upstream and downstream of operations
• Data limitations due to new information system implementation and changes in reporting scope

Mitigation Strategies

• Implementing Patient Value Strategy
• Better understanding of environmental footprint across the value chain
• Improved data validation and consolidation processes

Supply Chain Management

Responsible Procurement

• Process for selection and engagement of suppliers, contractors, and agents to ensure adherence to human rights, anti-corruption, anti-bribery, and no child labor policies

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4

Third-party Assurance: PricewaterhouseCoopers (PwC)

UN Sustainable Development Goals

• SDG 3: Good Health and Well-being
• SDG 4: Quality Education
• SDG 5: Gender Equality
• SDG 8: Decent Work and Economic Growth
• SDG 9: Industry, Innovation and Infrastructure
• SDG 13: Climate Action
• SDG 17: Partnerships for the Goals

UCB's engagement in various initiatives linked to the SDGs

Awards & Recognition

• London Stock Exchange’s FTSE4Good Index
• ECPI
• Corporate Knights
• First prize of the EFPIA Patient Think Tank

Environmental Metrics

ESG Focus Areas

• Environmental
• Social and employee matters
• Human rights
• Anti-corruption and bribery
• Diversity & Inclusion

Environmental Achievements

• Reached more than 92% green electricity (generated from renewable sources)
• Reduced overall energy consumption by 5%
• Reduced overall water consumption by 6%
• Reduced waste generation by 19%
• Recovered 91% of waste

Social Achievements

• Launched or expanded patient support programs (UCB Cares® and UCB Assist)
• 88% of employees consider UCB a socially responsible company
• €7 million spent in community sponsorships and charitable donations
• 19.5 hours of average training per employee
• Improved employee engagement (85% participation rate in UCB Voices survey)

Governance Achievements

• Implemented a company-wide due diligence process to assess human rights risks with new partners and suppliers
• Completed mandatory training programs (Code of Conduct, Patient Safety Reporting, Anti-Bribery and Anti-Corruption)

Climate Goals & Targets

Environmental Challenges

• Attracting, retaining, and engaging key leadership profiles and critical expertise in a competitive talent market
• Ensuring adequate awareness of compliance requirements among workforce to mitigate reputational and regulatory risks
• Maintaining a safe and healthy work environment
• Addressing climate change regulatory requirements and their potential impact on compliance and value chain
• Numeric safety imbalance in Evenity™ cardiovascular events

Mitigation Strategies

• Robust annual human resources processes, competitive remuneration, employee performance reviews, continuous learning opportunities, periodic employee engagement surveys, and well-being initiatives
• Specific training programs, systematic process controls of financial transactions, regular monitoring, integrity due diligence, and adherence to high standards by third parties
• Implementation of certified Health & Safety management systems, periodic emergency exercises, regular inspections, and defining minimum global health & safety requirements
• Stringent action plan to make operations carbon neutral by 2030, including reduction and compensation mechanisms
• Comprehensive evaluation underway to understand the safety signal observed in Evenity™

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Strong centralized governance, risk management, and high-quality standards enforced by the Supply Chain Security Council

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Continuously changing regulatory requirements aimed at mitigating climate change

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI G4 Sustainability Reporting Indicators

Certifications: ISO 14001 (Slough, Braine, Bulle, Zhuhai), OHSAS 18001 (Bulle, Slough, Zhuhai)

Third-party Assurance: PricewaterhouseCoopers (PwC)

UN Sustainable Development Goals

• Not disclosed

The SDGs serve as a reference for the company.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• London Stock Exchange's FTSE4Good Index
• ECPI
• Corporate Knights
• EURORDIS Company Award
• Best Ideas Award (UCB Iberia)
• Best Company Award 2017 (UCB China)

Environmental Metrics

ESG Focus Areas

• Scientific innovation
• Access to medicines
• Employees’ health, safety and wellbeing
• Health of the planet
• Diversity, equity, and inclusion
• Ethical business practices

Environmental Achievements

• Reduced CO2 emissions by 60% compared with 2015 benchmark
• Reduced water withdrawal by 30% compared to 2015 benchmark
• Reduced waste production by 38% compared to 2015 benchmark
• Achieved 95% renewable energy share for electricity

Social Achievements

• Positively impacted over 3.5 million patients' lives in 2020
• Launched UCB Community Health Fund
• Evolved health, safety and wellbeing (HSWB) ambition and delivery model, including the launch of a new HSWB index
• Implemented various wellbeing and support programs for employees during the COVID-19 pandemic

Governance Achievements

• Established a sustainability governance framework comprised of two bodies: Sustainability Governance Committee and External Sustainability Advisory Board
• Completed Code of Conduct training for 8,034 employees (95% completion rate)
• Completed ABAC training for 97% of employees
• Maintained 100% compliance with health and safety of products regulations and voluntary codes

Climate Goals & Targets

Environmental Challenges

• Competition from biosimilars, generics and new drug classes
• Intensity of successive product launches
• Exchange rate volatility
• Global pricing and access challenges
• Cybersecurity/big data and artificial intelligence
• Intellectual property
• Impact of COVID-19 pandemic

Mitigation Strategies

• Investing in superior overall value propositions in target patient populations; diversifying portfolio
• Matching capabilities and reallocating resources and talents in an agile way
• Hedging anticipated foreign currency cash flows
• Actively engaging in collaboration with payor and industry associations
• Multifaceted cybersecurity and data management strategy
• Proactively aware of the competitive landscape around our programs; actively defending key patents
• Implementing safety measures & wellbeing programs; continued supply of medicines; financial assistance for patients; contribution to COVID-19 research

Supply Chain Management

Supplier Audits: 100 suppliers assessed on sustainability performance (2020)

Responsible Procurement

• Suppliers Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Climate change, regulatory requirements, transition to low carbon economy

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 14001, OHSAS 18001

Third-party Assurance: Third-party assurance provider (unspecified)

UN Sustainable Development Goals

• SDG 3 (Good Health and Well-being)
• SDG 13 (Climate Action)
• SDG 17 (Partnerships for the Goals)

The report details how UCB's initiatives contribute to these goals.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• European Carton Excellence Gold Award

Environmental Metrics

Social Achievements

• Ensuring employee safety and financial support during the COVID-19 pandemic.
• Providing targeted financial support and in-kind donations to local communities.
• Giving extended payment terms to some vendors.

Climate Goals & Targets

Environmental Challenges

• Impact of the COVID-19 pandemic on clinical studies (pause in new patient recruitment and postponement of new study starts).

Mitigation Strategies

• Restarted clinical study recruitment and new study starts at sites meeting restart criteria.
• Closely monitoring the impact of COVID-19 on ongoing clinical trials and implementing necessary changes.
• Not applying for public support measures.
• Not planning renegotiation of major contracts.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: IAS 34

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Impact of COVID-19 pandemic on staff, patients, partners, and communities.

Mitigation Strategies

• Prioritizing assistance to employees, patients, and communities; implementing measures to protect health and ensure business critical activities; monitoring the impact of COVID-19 on clinical trials and implementing changes as necessary; leveraging multi-sourcing for key materials in its global supply chain to mitigate the impact of supply disruptions.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: IFRS

Environmental Metrics

ESG Focus Areas

• Human Rights
• Sustainability
• Ethical Business Conduct

Social Achievements

• Commitment to creating a diverse, equitable and inclusive work environment for employees.
• Commitment to fair practices and safe working conditions.
• Respect for employee rights (unionization, living wage, reasonable working hours).

Governance Achievements

• Establishment of a Human Rights Policy defining commitments, roles, responsibilities, and guiding principles.
• Implementation of a grievance mechanism for reporting complaints and addressing adverse human rights impacts.
• Strict non-retaliation policy to protect employees raising concerns or reporting misconduct.

Climate Goals & Targets

Environmental Challenges

• Potential adverse human rights impacts in all parts of the business and supply chain.

Mitigation Strategies

• Commitment to mitigating negative impacts and addressing potential adverse impacts.
• Compliance with applicable laws and internationally recognized human rights principles.
• Due diligence processes to identify and address priority human rights issues.
• Supplier Code of Conduct to drive environmental sustainability and respect for human rights.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Global Compact, UN Guiding Principles on Business and Human Rights