Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Social Responsibility
• Governance

Environmental Achievements

• Reduced CO2eq emissions per employee from 5.08 t in 2016 to 5.83 t in 2017 (Note: This seems counterintuitive and may require further investigation from the report)
• Decreased solvent emissions from 45.3 metric tons in 2016 to 29.0 metric tons in 2017 (due to lower production in Yauco after Hurricane Maria)
• Reduced water consumption per employee from 82.35 cbm in 2016 to 80.35 cbm in 2017
• Implemented energy-efficient technologies in Göttingen, significantly lowering CO2 emissions
• Increased the share of environmentally friendly raw materials where possible

Social Achievements

• Increased total headcount by 7.8% to 5,092 employees
• Implemented various measures to increase employee loyalty and motivation in India, resulting in decreased attrition rate
• Reduced attrition rate (excluding expired fixed-term contracts) from 6.4% in 2016 to 7.7% in 2017
• Reduced absenteeism rate to 3.9%
• Provided 55,258.25 hours of training in 2017 (average 15.2 hours per employee)
• Maintained a high level of employee seniority despite significant growth
• Reduced work accidents from 70 in 2016 to 54 in 2017

Governance Achievements

• Established a global compliance system to ensure adherence to legal regulations and internal guidelines
• Implemented an anti-corruption code and training program for all employees
• Established a whistleblower portal and telephone hotline for anonymous reporting of misconduct
• Included non-financial aspects (compliance, personnel, environmental) in due diligence processes for acquisitions
• Complied with the AFEP-MEDEF Corporate Governance Code

Climate Goals & Targets

Environmental Challenges

• Increasing Scope 3 greenhouse gas emissions (time-consuming to record and calculate)
• Hurricane Maria impacting production in Yauco
• Attracting and retaining internationally experienced specialists
• Maintaining a balance between growth and proportionate use of natural resources

Mitigation Strategies

• Phased integration of Scope 3 emissions
• Implementing energy-saving measures and renewable energy sources
• Expanding personnel-related programs to attract and retain talent
• Continuous improvement of processes and resource efficiency

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Code of Conduct for Suppliers
• Fair and transparent contract awarding process
• Exclusion of suppliers with significant risks regarding labor violations or negative societal impacts

Climate-Related Risks & Opportunities

Physical Risks

• Hurricane Maria (impact on Yauco site)

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products and processes

Reporting Standards

Frameworks Used: Greenhouse Gas Protocol, French Grenelle II environmental law

Certifications: ISO 9001 (most manufacturing sites), ISO 14001 (Göttingen, Aubagne, Bangalore), ISO 50001 (Göttingen, Guxhagen), LEED Platinum (Yauco)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Single-use products (reduced water and energy consumption compared to reusable systems)
• Sartopore Platinum membrane filters (reduced water consumption)

Awards & Recognition

• LEED Platinum certification for Yauco plant

Environmental Metrics

ESG Focus Areas

• Climate protection
• Materials and circularity
• Water and effluents
• Social responsibility
• Corporate governance
• Sustainability in the supply chains

Environmental Achievements

• Reduced CO2 emission intensity by 6.0% from the 2019 base year (market-based calculation)
• Increased renewable energy share to 31.7% of total energy consumption

Social Achievements

• Increased number of employees by 15.3% to 15,942
• Employee Net Promoter Score increased to 29.2 (trending towards the defined target of 35)
• Total training hours invested increased to 232,699 (average 14.8 hours per employee)

Governance Achievements

• Established the Corporate Sustainability Department
• 11,883 employees completed Code of Conduct training (75.6% coverage)
• 12,154 employees completed Anti-Corruption Code training (77.4% coverage)

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to the war in Ukraine and lockdowns in China
• High inflation rates and increased prices of raw materials
• Increased energy costs
• Challenges in achieving a circular economy due to the nature of the biopharmaceutical industry

Mitigation Strategies

• Maintaining safety stock levels and identifying alternative materials or suppliers
• Concluded binding purchase agreements with suppliers
• Implemented measures to reduce dependency on Russian gas supplies in Germany
• Initiated various projects focused on reducing packaging waste, recycling production waste, and product end-of-life strategies
• Introduced a standardized, multi-stage process to assess supplier sustainability

Supply Chain Management

Supplier Audits: 125 own quality-related supplier audits including sustainability aspects; 654 sustainability-related supplier self-assessments (49% of total purchasing volume)

Responsible Procurement

• Code of Conduct for Business Partners (updated in September 2022)
• Standardized, multi-stage process to assess supplier sustainability

Climate-Related Risks & Opportunities

Physical Risks

• Hurricanes (Puerto Rico)
• Earthquakes (Puerto Rico, California)

Transition Risks

• Regulatory changes
• Market shifts
• Energy supply disruptions

Opportunities

• Development of energy-efficient products
• Switching to renewable energy sources

Reporting Standards

Frameworks Used: GRI Standards, UN Global Compact, TCFD, SDG

Certifications: ISO 14001, ISO 45001, ISO 50001

Third-party Assurance: KPMG AG Wirtschaftsprüfungsgesellschaft (limited assurance for non-financial statement)

UN Sustainable Development Goals

• SDG 3
• SDG 4
• SDG 5
• SDG 6
• SDG 8
• SDG 9
• SDG 12
• SDG 13
• SDG 17

Sartorius' business activities contribute to these goals through its work in the life science sector, its commitment to human rights and labor standards, its environmental initiatives, and its focus on sustainable development.

Sustainable Products & Innovation

• Scalable and ready-to-use disposable membrane for separating monoclonal antibodies
• Computer-based application for optimizing cell culture development

Environmental Metrics

ESG Focus Areas

• Climate
• Materials and circularity
• Water and wastewater
• Social responsibility
• Corporate governance
• Sustainability in the supply chains

Environmental Achievements

• Reduced CO2eq emission intensity by 3.3% compared with the prior year and 15.7% compared with the 2019 base year.
• Increased share of renewable energy by just under four percentage points to 35.5% (previous year: 31.7%).
• Total volume of waste generated fell by 46.2% to 10,003 t (previous year: 18,581 t).

Social Achievements

• Five external sustainability-related site audits were carried out in accordance with PSCI standards.
• Across the Group, 4.5 work-related injuries occurred per million hours worked (previous year: 5.8).
• Training hours totaled 276,758 hours (previous year: 232,699), an increase of 18.9%.

Governance Achievements

• Compliance Management Manual was introduced.
• 11,570 employees completed Code of Conduct training and 11,490 employees completed Anti-Corruption Code training.

Climate Goals & Targets

Environmental Challenges

• Overall expected normalization of demand in the biopharmaceutical market.
• Geopolitical tensions.
• Longer than expected reduction in customer inventories.
• Pronounced market weakness in China.
• Strong reluctance to invest in the USA.
• Discontinued business with Russian customers.
• Muted investment activity overall.

Mitigation Strategies

• Adjusted headcount to around 14,600.
• Systematically reduced costs.
• Postponed some investments.
• Accelerated deleveraging and created additional strategic flexibility through an equity raise totaling 1 billion euros.
• Expansion of production capacity.
• Investments in resilience in the face of geopolitical uncertainties.

Supply Chain Management

Supplier Audits: 62 own quality-related supplier audits, which included sustainability aspects.

Responsible Procurement

• Code of Conduct for Business Partners
• Sustainability assessment process using self-assessments based on standardized questionnaires via recognized providers.
• External, independent on-site sustainability audits for selected suppliers.

Climate-Related Risks & Opportunities

Physical Risks

• Severe hurricanes or earthquakes impacting production plants in Puerto Rico and Fremont, California.

Transition Risks

• Geopolitical crises leading to trade restrictions or sanctions.
• Decoupling tendencies or restrictions on the business activities of foreign enterprises in countries like China.
• New regulations on environmental, social, and governance aspects.

Opportunities

• Switching all electricity consumption to renewable sources by 2030.
• Continuous decarbonization along the value chain.

Reporting Standards

Frameworks Used: GRI, Greenhouse Gas Protocol

Certifications: ISO 14001, ISO 45001, ISO 50001, ISO 27001

Third-party Assurance: KPMG AG Wirtschaftsprüfungsgesellschaft

UN Sustainable Development Goals

• Good Health and Well-being

The United Nations’ sustainability goal “Good Health and Well-Being” is an integral component of Sartorius’ business model.