Climate Change Data

Environmental Metrics

ESG Focus Areas

• Women's Health
• Access & affordability
• Climate change risks & management
• Diversity, equity, inclusion, and belonging (DEI&B)
• Product quality, safety & integrity
• Ethics and compliance

Environmental Achievements

• 75% of operational waste reused, recycled, or used beneficially
• 50% of manufacturing facilities have biodiversity projects underway
• Reduced water extraction by up to 1,159 m³ per month in Campinas, Brazil due to purified water system and effluent reuse.
• Reduced water usage by 13 m³/day at Oss, Netherlands facility.

Social Achievements

• Completed or executed five licensing agreements or acquisitions to expand women’s health portfolio.
• Donated over $9.5 million of biosimilars to eligible patients in the US.
• 89% of employees reported feeling valued and proud to work at Organon.
• 86% of employees felt their work gave them a sense of personal accomplishment.

Governance Achievements

• Board of Directors with 69% women and 46% from underrepresented minority groups.
• Implemented LinkedIn Learning for employee upskilling.
• Established Speak Up ethics hotline for reporting concerns.

Climate Goals & Targets

Environmental Challenges

• Barriers to accessing medicine and healthcare (geographic, financial, social, cultural, or political)
• Climate change impacts disproportionately burdening women
• Counterfeit products
• Maintaining product quality and safety

Mitigation Strategies

• Her Promise Access Initiative to increase access to contraceptives in low-income countries
• Implementing environmentally friendly practices and long-term sustainability across operations and value chain
• Investing in serialization to secure supply chain and prevent counterfeiting
• Robust quality management systems (QMS) and product safety monitoring

Supply Chain Management

Supplier Audits: 26 self-assessment questionnaires performed

Responsible Procurement

• Business Partner Code of Conduct based on Pharmaceutical Supply Chain Initiative’s principles, UN Global Compact principles, and Organon’s Code of Conduct
• Supplier self-assessment questionnaires covering various ESG aspects

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI, SASB, UN SDGs

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 3 (Good Health and Well-being)
• SDG 5 (Gender Equality)
• SDG 6 (Clean Water and Sanitation)
• SDG 7 (Affordable and Clean Energy)
• SDG 8 (Decent Work and Economic Growth)
• SDG 10 (Reduced Inequalities)
• SDG 12 (Responsible Consumption and Production)
• SDG 13 (Climate Action)
• SDG 14 (Life Below Water)
• SDG 17 (Partnerships for the Goals)

Organon's purpose aligns with these SDGs

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Best Company for Diversity, Best Company for Women, and Best CEO (MENAT China)
• Leading DEI Best Company award (2021)

Environmental Metrics

ESG Focus Areas

• Women's Health
• Environmental Sustainability
• Governance

Environmental Achievements

• 89% of operational waste reused, recycled, or otherwise used beneficially
• 1,029,000 MT CO2e reduction in Scope 1 and 2 GHG emissions against 2020 baseline
• 2.4% reduction in total energy use across six sites against 2020 baseline
• 3.4% of manufacturing sites invested in biodiversity projects

Social Achievements

• 48% increase in diverse supplier spend over 2021
• 47 million women provided access to family planning options in 2022
• 90% of employees feel diversity is valued
• 99.5% gender pay equity in US, UK, and Switzerland
• 99.9% pay equity for non-White and White employees in the US

Governance Achievements

• Nearly 70% of directors are women (most gender-diverse Board in S&P 500)
• 66% of standing US Board committees chaired by women
• MSCI upgraded Organon’s ESG rating to an A in early 2023

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier diversity and engagement

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

• Comparably awards: Best CEO, Best Company Culture, Best HR Team, Happiest Employees, Best CEOs for Diversity, Best Company for Diversity, Best Operations Team, Newsweek Most Responsible Businesses, Best CEOs for Women, Best Company for Women, Bloomberg Gender-Equality Index, Prime Employers for Women Gold Award, Best Company Compensation, Best Global Culture DE&I Best Practices, Belonging Award

Environmental Metrics

ESG Focus Areas

• Women's Health
• Gender Equity
• Access to Medicines
• Climate Change
• Water Management
• Waste Management
• Biodiversity
• Business Ethics
• Compliance
• Supplier Diversity

Environmental Achievements

• Reduced Scope 1 and 2 GHG emissions by 6.6% from 2020 levels
• Reduced water usage by 6.1% against a 2020 baseline
• Reduced plastic and cardboard waste by approximately 6 metric tonnes per year at the Heist site
• Reused, recycled, or otherwise used beneficially 93% of operational waste from six manufacturing sites

Social Achievements

• Female representation in director-level and above roles increased to 47%
• Achieved 100% pay equity for similarly situated female and male employees in nine major markets
• Achieved 100% pay equity for similarly situated non-White and White employees in equivalent positions in the United States
• Helped prevent ~65 million unintended pregnancies through the Her Promise Access Initiative
• Provided over 54 million women and girls in LMICs affordable access to contraceptive options
• Exceeded target of 25% increase in addressable spend with diverse suppliers by 2025
• Exceeded development and mentorship goal of engaging five suppliers

Governance Achievements

• 42% of directors are from U.S. underrepresented racial and ethnic groups
• 70% of Board of Directors have been women since founding in 2021
• 66% of standing Board committees are chaired by women

Climate Goals & Targets

Environmental Challenges

• Reducing Scope 1 and 2 GHG emissions to meet 25% reduction target by 2025
• Reducing water usage to meet >5% reduction target by 2025
• Increasing supplier spend devoted to suppliers with GHG emissions reduction programs to 70% by 2025
• Increasing supplier spend devoted to suppliers with water reduction programs to 70% by 2025
• Characterizing and regularly updating Scope 3 GHG emissions and water usage in the value chain

Mitigation Strategies

• Entered into a virtual purchase power agreement with Schneider Electric for renewable energy
• Advanced review of suppliers' GHG emission reduction plans
• Evaluating supply chain risk management tools
• Developed method to estimate and track Scope 3 GHG emissions
• Developed Organon Sustainability Packaging Guidelines

Supply Chain Management

Responsible Procurement

• Aim to increase addressable spend with diverse suppliers
• Engage suppliers in development and mentorship programs

Climate-Related Risks & Opportunities