Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change Mitigation
• Access to Medicines

Environmental Achievements

• Reduced GHG emissions from its activities by 27% since 2015
• Reduced GHG emissions from its sales care fleet by 51% since 2015
• All French sites using 100% renewable electricity since 2021
• Performed Life Cycle Assessment of medicines and medical devices
• Completed an ecosystems impact assessment for 37% of its top-selling medicines

Social Achievements

• Provided more than 530 million treatments to support the WHO’s vision for a malaria-free world by 2030 (since 2007)
• Supported the set-up of 31 dedicated medical structures called “Diabetes and Hypertension Clinics” in Cameroon, Senegal and Côte d’Ivoire since 2014, training 1,234 healthcare professionals and treating 54,643 patients
• Delivered 372 million doses of OPV (including 345 million to UNICEF), 115 million doses of IPV (including 66 million to UNICEF), and 10 additional combination vaccines containing IPV in 2020 to help prevent up to six childhood diseases
• Partnered with the WHO for 20 years to combat neglected tropical diseases, leading to the elimination of sleeping sickness as a public health issue in Togo (2020) and Côte d’Ivoire (2021)
• Rolled out fexinidazole, the first all-oral treatment for sleeping sickness, in the Democratic Republic of Congo in 2020
• Engaged 8,100 employee volunteers, helping 115,500 people in 53 countries (as of 2020)

Governance Achievements

• Sanofi Board of Directors committed to promoting long-term value creation while considering social and environmental impacts
• CSR strategy and performance reviewed by the Board at least annually
• Appointments, Governance and CSR Committee ensures CSR issues are considered in corporate strategy
• 15% of the CEO's annual variable compensation is contingent on CSR performance (2020)

Climate Goals & Targets

Environmental Challenges

• Climate change impacts representing physical and transitional risks
• Regulatory uncertainty in some markets (for access to medicines)
• Regulatory uncertainty due to the recently announced African Medicines Agency
• Ongoing COVID-19 pandemic reducing the focus of local health authorities on NCDs
• Supplier engagement program not delivering results as planned
• Externalization of production and research (moving emissions from scope 1, 2 to scope 3)
• Transportation crisis hindering the transition from air to sea freight
• Decarbonization challenges in aviation
• Ability to scale up sales impacting the budget to finance programs
• Finding adequate partners to support the ambition
• Scaling programs across geographies

Mitigation Strategies

• Operational cross-functional workstream “Climate Change” implementing initiatives to mitigate environmental impacts
• Commitment to 100% renewable electricity in Sanofi’s sites by 2030
• Energy conservation projects
• Carbon neutral car-fleet by 2030
• Thermal renewable energy initiatives
• Supplier engagement program to support suppliers' decarbonization strategies
• Working with energy suppliers to improve efficiency and lower carbon footprint
• Switching to lower-carbon emitting transportation modes
• Minimizing scope 3 emissions from waste treatment
• Limiting business travel mileage and prioritizing SAF
• Leveraging remote working policies
• Competitive pricing approach for essential medicines ensuring affordability and sustainability
• Proactive approach to market authorizations
• Refining manufacturing and supply chain forecasts
• Developing stringent partnership and distribution criteria
• Engaging key global and local stakeholders
• More than two-fold forecasted budget increase for programs between 2022 and 2026
• Situational analysis to identify unmet needs and opportunities
• Intensive partner scouting
• Piloting various models and scaling up successful programs
• Integrating robust target setting, measurement, and follow-up
• Setting up transfer/exit strategies for supported programs

Supply Chain Management

Responsible Procurement

• Supplier engagement program to support decarbonization strategies

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions
• Food shortages
• Difficulties in accessing drinking water
• Increased air pollution
• Spread of vector-borne diseases

Transition Risks

• Regulatory changes
• Market shifts

Reporting Standards

Frameworks Used: ICMA Sustainability-Linked Bond Principles (2020)

Third-party Assurance: ISS ESG (Second Party Opinion)

UN Sustainable Development Goals

• SDG 3
• SDG 7
• SDG 13

Initiatives aligned with targets related to good health and well-being, affordable and clean energy, and climate action

Environmental Metrics

ESG Focus Areas

• Climate Change
• Water Management
• Waste Management
• Biodiversity
• Access to Healthcare
• Infectious Disease Eradication
• Non-Communicable Disease Reduction
• Employee Health and Safety
• Gender Balance
• Community Engagement
• Responsible Procurement
• Ethics and Transparency

Environmental Achievements

• Reduced water consumption by 19% since 2015
• Reduced CO2 emissions by 12% since 2015
• 90% of waste recycled, reused, or recovered
• Landfill waste reduced to 8%
• 80% less CO2 emissions and energy consumption in Framingham facility
• 321 tons of waste saved annually in Framingham facility

Social Achievements

• 83 million doses of Inactivated Polio Vaccine supplied to UNICEF and GAVI
• More than 85,000 children and 2,700 teachers benefited from the KiDS program
• 75 projects in 48 countries trained over 25,000 healthcare professionals and treated over 85,000 children (My Child Matters)
• 6.4% of work-study contracts awarded to young people from priority neighborhoods
• 37.2% of Sanofi's top 2,000 executives are women

Governance Achievements

• Introduced an individual CSR performance criterion in CEO's compensation package

Climate Goals & Targets

Environmental Challenges

• Pressures on healthcare funding and affordability
• Competition from non-traditional players
• Income disparities impacting healthcare access
• Climate change increasing health risks
• Rising transparency expectations
• Scale of infectious and non-communicable diseases
• Geopolitical and social instability

Mitigation Strategies

• Robust risk management process
• Materiality analysis to prioritize issues
• New strategic framework ('Play to Win')
• Cost savings initiatives (€2 billion by 2022)
• Deep dive analysis of geopolitical risks
• Commitment to ethics and transparency

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• €14.5bn Sanofi spend with suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: International Integrated Reporting Framework (IIRC), Global Reporting Initiative (GRI) Standards: Core option, UN Global Compact

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 3: Good Health and Well-being
• Goal 13: Climate Action

Contribution to UN Sustainable Development Goals outlined in report

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Access to Medicine

Environmental Achievements

• Reduced GHG emissions from its activities by -27% since 2015
• Reduced GHG emissions from sales care fleet by -51%
• All French sites using 100% renewable electricity since 2021

Social Achievements

• Launched Sanofi Global Health (SGH), a non-profit unit focused on providing essential medicines in LICs and LMICs

Governance Achievements

• Established a board committee in charge of ESG matters
• CEO’s variable compensation based on quantitative and qualitative criteria, including CSR objectives

Climate Goals & Targets

Environmental Challenges

• Scope 3 emissions represent 88% of Sanofi's total GHG emissions
• Regulatory uncertainty in some markets
• COVID-19 pandemic reducing focus of local health authorities on NCDs
• Ethical issues in R&D, marketing and product safety
• Product safety controversies
• Gaps in compliance system

Mitigation Strategies

• Developed Planet Mobilization program to minimize environmental impacts
• Set ambitious targets for GHG emission reductions (validated by SBTi)
• Launched supplier engagement programs to support decarbonization strategies
• Established SGH with a focus on sustainable social impact
• Implemented structures to ensure ethical clinical trials
• Established a bioethics committee
• Improved disclosure policy for clinical trials

Supply Chain Management

Responsible Procurement

• Supplier engagement program focusing on decarbonization

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GHG Protocol, SBTi

Third-party Assurance: Recognized third-party company (ISAE 3000 assurance)

Environmental Metrics

ESG Focus Areas

• Affordable access to medicines
• R&D for unmet needs
• Efficiency & Sustainability
• Inclusive workplace

Environmental Achievements

• Reduced water consumption by 22% since 2015
• Reduced CO2 emissions by 27% since 2015
• 100% of French sites powered by renewable electricity since January 2021
• Half of electricity supplied worldwide is now renewable

Social Achievements

• Launched Sanofi Global Health, a non-profit unit to provide affordable access to essential medicines in 40 poorest countries
• Donated at least 100,000 vials of medication for lysosomal storage diseases annually
• 38.8% of Sanofi's 2,000 Senior Leaders are women
• 8,130 employee volunteers contributed 115,500 volunteer hours benefiting 24,400 people across 53 countries
• Developed a global access plan for all new products, aiming for availability within two years of launch

Governance Achievements

• Included CSR performance in CEO's compensation package (60% based on specific individual objectives)
• Established a Gender Council to promote gender parity
• Aiming for gender parity in senior leadership by 2025 (40% women at executive level)
• Renewed partnership with WHO to fight Neglected Tropical Diseases and eliminate sleeping sickness before 2030

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting operations, supply chains, and clinical trials
• Climate change impacting global health and business operations
• Income disparities and access to healthcare
• Growing geopolitical uncertainties and pressure on healthcare costs

Mitigation Strategies

• Business continuity planning, remote working, and adapted on-site working
• Digital learning solutions for employee training
• Investment in manufacturing capacity and supply chain resilience
• Environmental sustainability program (Planet Mobilization)
• Creation of Sanofi Global Health unit
• Global access plan for new products

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions
• Food shortages
• Difficulties in accessing drinking water
• Increased air pollution
• Spread of vector-borne diseases

Reporting Standards

Frameworks Used: GRI Standards: Core option, International Integrated Reporting Framework

Certifications: ISO 14289-1 (accessible PDF)

UN Sustainable Development Goals

• Goal 3: Good Health and Well-being
• Goal 10: Reduced Inequalities
• Goal 13: Climate Action

Sanofi's social impact strategy is aligned with these goals through initiatives such as Sanofi Global Health, R&D for unmet needs, and environmental sustainability programs.

Sustainable Products & Innovation

• Eco-design for 100% of new products by 2025
• 100% blister-free vaccines by 2027

Awards & Recognition

• CDP’s “A List” for water resource protection
• CDP A- rating for greenhouse gas emission reduction and reporting transparency

Environmental Metrics

ESG Focus Areas

• Empower self-care behavior change
• Make an impact to communities
• Instill a culture of inclusion, sustainability and employee safety and well-being
• Climate action toward net zero
• Reduce waste and embrace circularity
• Protect natural ecosystems

Environmental Achievements

• Reduced GHG emissions by 37% vs 2019 baseline (scopes 1 & 2)
• 78% renewable electricity sourced from the grid
• 7 of 13 sites achieved landfill-free status
• 26% reduction in volume of printed materials
• 3 brands with formal life cycle assessment performed

Social Achievements

• Reached 394,800 beneficiaries through community programs
• Launched "All Well" employee well-being program, resulting in 77% employee satisfaction/engagement
• 45.6% women in management positions
• 15.1% attrition rate

Governance Achievements

• Became a Certified B Corp in North America
• Implemented sustainability-linked objectives for all employees
• Established a three-layered sustainability governance structure

Climate Goals & Targets

Environmental Challenges

• High proportion (90%+) of GHG emissions from indirect sources (Scope 3)
• Varying recycling rates and waste management approaches across different countries
• Need for better structured data collection and governance processes

Mitigation Strategies

• Developed Supplier Climate Action Plan (SCAP) to engage top emitters
• Partnered with TerraCycle for a take-back program in the US
• Committed to strengthening data gathering, management and governance for social impact indicators

Supply Chain Management

Supplier Audits: 66% of supplier spend assessed with EcoVadis

Responsible Procurement

• Sanofi Code of Conduct
• EcoVadis assessment
• Supplier Climate Action Plan (SCAP)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, SASB, B Impact Assessment

Certifications: B Corp (North America)

Awards & Recognition

• Certified B Corp (North America)

Environmental Metrics

ESG Focus Areas

• Human capital
• Access to healthcare
• Product quality
• Product safety for patients and consumers
• Medical ethics and bioethics
• Supply chain continuity
• Ethics and business integrity
• Tax policy
• Environment
• Animal protection

Environmental Achievements

• Reduced greenhouse gas emissions by 38% (scopes 1 & 2, market-based) from 2019 to 2023.
• Increased renewable energy share to 79% in 2023.
• Reduced Scope 3 emissions by 7% versus the 2019 baseline in 2023.
• Reduced landfill disposal rate to 2% in 2023.

Social Achievements

• Launched Leaders to Citizens program in 2022 to engage leaders in CSR.
• Improved employee engagement score to 7.5/10 in 2023.
• Launched a global gender-neutral parental leave policy in 2022.
• Launched 'A Life in A Day' program to improve patient understanding among employees.
• Launched 'A Million Conversations' initiative to rebuild trust in healthcare with under-represented communities.

Governance Achievements

• CEO compensation includes a 15% CSR performance criterion.
• Equity-based compensation plans include two CSR criteria (Access and Carbon footprint) representing 10%.

Climate Goals & Targets

Environmental Challenges

• Attracting and retaining talent in a competitive market.
• Ensuring access to affordable healthcare globally.
• Maintaining product quality and safety.
• Supply chain disruptions.
• Climate change impacts on operations and supply chain.
• Maintaining ethical business practices.
• Managing risks related to the use of animals in research.

Mitigation Strategies

• Implemented a comprehensive People Strategy.
• Established the Sanofi Global Health Unit.
• Implemented a robust quality management system.
• Developed Global Access Plans for new products.
• Developed a Planet Care roadmap to address climate change.
• Established an Ethics & Business Integrity program.
• Implemented the “3Rs” (Replacement, Reduction and Refinement) principle on the use of animals in research.

Supply Chain Management

Supplier Audits: 225 in 2023

Responsible Procurement

• Supplier Code of Conduct
• Sustainability assessments in tendering process
• Third-party assessments for high-risk suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Raw material scarcity
• Water stress
• Natural disasters

Transition Risks

• Carbon costs
• Stakeholder pressure
• Logistics disruption
• Health system disruption

Opportunities

• Energy efficiency
• Health resilience

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UNGC

Certifications: ISO 14001, ISO 50001

Third-party Assurance: Independent third party

UN Sustainable Development Goals

• SDG 3

Contributions to health and well-being through medicines and vaccines.

Sustainable Products & Innovation

• Blister-free vaccine packaging

Awards & Recognition

• European Diversity Awards: Diversity Team of the Year