Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate change
• Antimicrobial resistance
• Sustainable packaging
• Employee wellbeing
• Diversity and inclusion

Environmental Achievements

• Achieved carbon neutral status for UK operations
• Planted over 200 trees at a local primary school

Social Achievements

• Launched a global employee assistance program
• Continued focus on employee engagement (Gallup Q12 score ahead of European average)

Governance Achievements

• Enhanced Risk Management Framework implemented
• Continued focus on Board diversity

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions
• Increased focus on sustainability and environmental impact
• Decreasing demand for antibiotics
• Emergence of corporate customers and buying groups in veterinary market
• Competitor risk from generic or novel products

Mitigation Strategies

• Restructured supply chain function
• Investment in STEM Animal Health Inc. for biofilm-targeting technologies
• Focus on life cycle management strategies for key brands
• Dedicated group to support pan-European corporate vet practices
• Investment in business development to support move to novel and differentiated products

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Working with key suppliers to develop risk mitigation strategies
• Investment in ‘Partner Management’ to strengthen ties with suppliers

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

• Daxocox
• Plaqtiv+

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate change
• Antimicrobial resistance
• Diversity and inclusion
• Supply chain and responsible procurement
• Employee wellbeing, health and safety
• Sales and marketing ethics

Environmental Achievements

• Achieved carbon neutral status for UK operations
• Broadened Scope 1 and Scope 2 greenhouse gas emissions reporting to include Group-wide operations in Europe
• Participated in the Brazil Verified Carbon Standard REED project to offset emissions
• Planted more than 200 native British broad-leaved trees

Social Achievements

• Implemented Talent Review Process and competency framework to support employee development
• Launched “High Challenge High Support” leadership programme and “Pioneering Professional” programme for future leaders
• Launched employee assistance programme for wellbeing support
• Created a Diversity and Inclusion Task Force to review current approach and implement a formal strategy

Governance Achievements

• Established a dedicated Sustainability Task Force to advise on aspects of sustainability and drive Group-wide ESG strategy
• Conducted a materiality assessment to identify and prioritize issues important to stakeholders and the business

Climate Goals & Targets

Environmental Challenges

• Moderation in post-pandemic demand across Europe
• Termination of certain Companion Animals distribution agreements
• Application of EU regulations in Spain to reduce antibiotic usage
• Supply chain disruptions or delays
• Accelerating inflationary pressures impacting cost base
• Increased cyber threat

Mitigation Strategies

• Focus on bigger-selling, more profitable products
• Targeted pricing interventions to mitigate inflation
• Strengthening relationships with larger customers
• Life cycle management strategies for key brands
• Strategic partnerships to strengthen product portfolio
• Investment in cloud-based IT systems and security tools
• Engagement with security-aware IT service providers
• Internal security policies
• Global cyber insurance

Supply Chain Management

Responsible Procurement

• Quality management reviews
• Supplier forums and networking meetings
• Risk mitigation strategies

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Climate change
• Antimicrobial resistance
• Sustainable packaging
• Diversity and inclusion
• Employee wellbeing
• Supply chain and responsible procurement

Environmental Achievements

• Achieved carbon neutral status in UK operations in 2020
• Reduced Scope 2 emissions by 21%
• Supported a clean water initiative in Zambia to offset CO2e from IV fluids sales

Social Achievements

• Launched Global Wellbeing & Resilience Strategy ('We Care')
• Implemented targeted plans to enhance employee engagement in communication, reward, and development
• Introduced competency development assessment and leadership development programs
• Simplified performance management process and reviewed bonus strategy

Governance Achievements

• Created a Sustainability Task Force (STF) to advise on environmental and social sustainability
• Established a screening process for major suppliers to highlight risks associated with modern-day slavery and human rights
• Developed a Group-wide approach to sustainable packaging with reduction and recycling initiatives

Climate Goals & Targets

Environmental Challenges

• Normalisation in rates of demand growth across markets due to macroeconomic environment
• Inflationary pressures impacting cost base
• Competitor dynamics against certain generic brands
• Supply chain disruptions
• Increasing regulatory burden
• Cybersecurity threats
• Attracting and retaining high-calibre talent

Mitigation Strategies

• Focus on larger-selling, more profitable products
• Targeted pricing measures
• Investment in sales and marketing
• Lifecycle management strategies for key brands
• Strategic partnerships to strengthen product portfolio
• Robust pipeline monitoring processes
• Detailed sales and marketing plans for new product launches
• Maintaining strong cash conversion and balance sheet
• Hedging strategies to mitigate foreign exchange risk
• Broad supply base to reduce dependency on single suppliers
• Regular supplier meetings and audits
• Investment in cloud-based IT systems and security tools
• Global cyber insurance
• Systems and procedures to monitor and maintain regulatory compliance
• Regular dialogue with regulatory authorities
• Robust Pharmacovigilance (PV) process
• Strong performance management culture
• Competitive remuneration packages
• Investment in staff training and development
• Wellbeing program ('We Care')

Supply Chain Management

Responsible Procurement

• Suppliers required to conform to Good Manufacturing Practice (GMP) and Good Distribution Practice (GDP) requirements

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Plaqtiv+ oral health range