Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Employees
• Suppliers
• Business ethics
• Products

Environmental Achievements

• Substantially reduced relative environmental impact in 2011 due to more efficient use of production facilities (production doubled, but water and energy consumption remained at 2010 levels).
• Total global CO2 emissions dropped by 2%, from 3,787 tonnes in 2010 to 3,700 tonnes in 2011.
• Relative emissions per batch at Kvistgård fell to half the previous year's level.

Social Achievements

• Overall Bavarian Nordic absence rate for 2011 was 3.7%, lower than the 2010 rate and the Danish pharmaceutical industry average of 5.8%.
• Number of work-related accidents in 2011 was lower than in 2010 and 2009, substantially below the Danish average.
• Implemented a set of values in 2011 to describe company culture and actively worked on implementation.

Governance Achievements

• Developed a Code of Ethics and Business Conduct observed by all employees.
• Introduced a whistleblower scheme (implementation expected in 2012).

Climate Goals & Targets

Environmental Challenges

• Company's absence registration system was not automated, making it time-consuming.
• Increased employee turnover in 2011, partly due to the introduction of shift work.

Mitigation Strategies

• Working to implement an efficient absence registration system and draft uniform guidelines.
• Careful introduction and training for new employees at Kvistgård to reduce accident rates.

Supply Chain Management

Supplier Audits: 25/year

Responsible Procurement

• Inclusion of social and environmental conditions in purchasing contracts; compliance with basic ethical, social, and environmental guidelines.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Third-party Assurance: Deloitte Statsautoriseret Revisionspartnerselskab

Environmental Metrics

ESG Focus Areas

• Products
• Environment
• Employees
• Suppliers
• Business Ethics

Environmental Achievements

• Reduced relative climate impact by more than 20%
• Reduced energy consumption at Kvistgaard facility by 7%
• Reduced water consumption in production by 4%
• Lower waste amount compared to 2013 due to improved manufacturing efficiency

Social Achievements

• Employee turnover rate decreased to 13.8% (from 19.6% in 2013)
• Absence rate decreased to 3.1% (from 3.9% in 2013)
• Only one minor occupational accident in 2014
• Maintained equal distribution of men and women in managerial positions (47%/53%)
• Introduced an anti-harassment policy with manager training

Governance Achievements

• Updated Code of Conduct and presented it to all employees
• Launched an ethics hotline for reporting suspected violations of the Code

Climate Goals & Targets

Environmental Challenges

• Increased manufacturing activities leading to slightly higher CO2 emissions
• Significant employee outflow in 2013 due to Berlin facility closure

Mitigation Strategies

• Implementation of energy-saving solutions and better resource utilization to reduce climate impact
• Consolidation of manufacturing activities in Denmark

Supply Chain Management

Supplier Audits: All new raw materials suppliers are audited; existing suppliers evaluated every third year

Responsible Procurement

• GMP compliance
• Supplier management system

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Third-party Assurance: Deloitte Statsautoriseret Revisionspartnerselskab

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced total CO2 emissions by 12% compared to 2014 despite increased production activities.
• Reduced relative climate impact from production by 24% due to optimizations and better resource utilization.
• Reduced water consumption in production by more than 2%.

Social Achievements

• Maintained absence rate below 4% (3.9%).
• Recorded only minor occupational accidents (6 total, all with limited absence).
• Maintained equal distribution of men and women in managerial positions (51%/49%).
• Increased focus on psychosocial working environment through training and voluntary meetings.

Governance Achievements

• All employees received training in the Code of Business Conduct and Ethics.
• A whistleblower system (Ethics Hotline) was established.
• Undertook a screening to assess how business may impact human rights using a Human Rights Impact Assessment Tool.

Climate Goals & Targets

Environmental Challenges

• Higher employee turnover (21.6%) due to reorganization and staff reduction in California.
• Increased occupational accident frequency rate (8.2 accidents per million working hours) in 2015 compared to 2014 (1.4), attributed to expansion of manufacturing facility and more complex procedures.
• Higher waste amount in 2015 compared to 2014 due to higher manufacturing activity.
• Chloride measurement in wastewater exceeding permit value in August 2015 (believed to be inaccurate).

Mitigation Strategies

• Strengthened safety organization and implemented exhaustive training program for new employees to mitigate risks associated with new processes.
• Increased focus on working environment leading to higher and more reliable reporting of accidents and near-misses.
• Continued work to increase recycling of waste from production and entered into an agreement with a new waste carrier.
• New measuring of chloride did not reveal violations; the reported value was adjusted based on purchased amount of sodium chloride.

Supply Chain Management

Supplier Audits: Risk assessment of all new suppliers; initial audit followed by evaluation every third year for suppliers with material impact on product quality and safety.

Responsible Procurement

• GMP compliance
• Supplier management system

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Greenhouse Gas Protocol

Third-party Assurance: Deloitte Statsautoriseret Revisionspartnerselskab (limited assurance)

Environmental Metrics

ESG Focus Areas

• Environment and climate impact
• Product safety
• Suppliers
• Business ethics
• Human rights
• Employee well-being
• Occupational health and safety

Environmental Achievements

• Reduced total CO2 emissions by 13% despite increased manufacturing activities.
• Reduced relative climate impact from production by 39%.
• Increased the share of waste for recycling from 9% in 2015 to 43% in 2016.

Social Achievements

• Recorded only one occupational accident in 2016, resulting in only one day of injury-related absence.
• Absence rate decreased to 3.6% in 2016 from 3.9% in 2015.
• Employee turnover rate decreased to 15.0% in 2016 from 19.5% in 2015.
• Maintained an equal distribution of men and women in managerial positions (48% and 52% respectively).

Governance Achievements

• All employees receive yearly training in the Code of Business Conduct and Ethics.
• Established a whistleblower system to report issues and breaches of the Code.

Climate Goals & Targets

Environmental Challenges

• Increased manufacturing activities leading to higher energy consumption and waste.
• Maintaining emission reductions while increasing production.

Mitigation Strategies

• Implemented energy-saving initiatives (energy-efficient light sources, natural ventilation, condensing boilers).
• Optimized consumption of raw materials and additives.
• Implemented new procedures for separation and handling of waste.

Supply Chain Management

Supplier Audits: Initial audit for new suppliers, followed by evaluation every three years.

Responsible Procurement

• Risk assessment of all new suppliers of critical materials and equipment.
• Encouraging suppliers to act responsibly in all matters relating to CSR.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI, UNGC

Certifications: Null

Third-party Assurance: Deloitte Statsautoriseret Revisionspartnerselskab

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environment and climate impact
• Employee health and safety
• Business ethics
• Human rights
• Supplier responsibility

Environmental Achievements

• Reduced total CO2 emissions to 2,641 metric tons in 2017 from 2,695 metric tons in 2016.
• Reduced energy consumption by 7%, largely due to lower natural gas consumption for heating.
• Increased waste recycling from approximately 10% to approximately 40% annually.

Social Achievements

• Maintained an equal distribution of men and women in managerial positions (51% and 49% respectively).
• Met the target to maintain absence rate below 4% (3.7% in 2017).

Governance Achievements

• No reports of violation of human rights or business ethics code violations were received in 2017.
• All employees received yearly training in the Code of Business Conduct and Ethics.

Climate Goals & Targets

Environmental Challenges

• Slight increase in occupational accidents compared to 2016 (3.9 accidents per million working hours vs 1.3 in 2016).
• Increased electricity consumption due to expansion of cold storage facility.

Mitigation Strategies

• Proactive work by health and safety committees to identify potential issues related to the new fill-finish facility.
• Continued efforts around dialog-based absence management to reduce illness-related absence.

Supply Chain Management

Supplier Audits: Every third year for critical suppliers

Responsible Procurement

• Risk assessment of all new suppliers
• Audits of suppliers to encourage responsible CSR practices

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI, UNGC

Certifications: Null

Third-party Assurance: Deloitte Statsautoriseret Revisionspartnerselskab

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environment and Climate
• Employee Health and Safety
• Diversity and Inclusion
• Human Rights
• Responsible Procurement
• Anti-Corruption
• Data Integrity

Environmental Achievements

• Lowered total CO2 emissions to an all-time low since the start of CSR reporting (2,361 metric tons in 2018 vs 2,641 in 2017)
• Increased recycling rate from 40% in 2017 to 42% in 2018
• Reduced waste from 151 metric tons in 2017 to 130 metric tons in 2018

Social Achievements

• Reduced absence rate to 2.9% in 2018 (from 3.7% in 2017), meeting the target of below 4%
• Reduced Lost Time Injury Frequency Rate (LTIFR) to 2.7 accidents per million working hours (from 3.9 in 2017)
• Maintained equal distribution of men and women in managerial positions
• Implemented GDPR training for all employees

Governance Achievements

• Implemented a data integrity project and policy, providing training to all employees
• Provided anti-corruption training to all employees in accordance with the Code of Business Conduct and Ethics
• Established a whistleblower system

Climate Goals & Targets

Environmental Challenges

• Increased water consumption due to construction of a new fill-finish facility
• Potential for future increase in CO2 emissions with increased manufacturing output
• Risk of accidents associated with handling of viruses and chemicals
• Risk of legal/financial consequences from employee violations of the Code of Business Conduct

Mitigation Strategies

• Ongoing construction of a new fill-finish facility to improve reporting accuracy and potentially reduce transportation emissions
• Proactive and systematic work in the EHS organization to mitigate risks associated with handling viruses and chemicals
• Risk assessments of all new suppliers of critical materials and equipment
• Regular audits of suppliers to ensure responsible practices
• Implementation of a data integrity project and policy, along with employee training

Supply Chain Management

Supplier Audits: Risk assessment of all new suppliers; initial audit followed by evaluation every three years for critical suppliers

Responsible Procurement

• Risk assessment of suppliers of critical materials and equipment
• Supplier audits every three years

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI, UN Global Compact

Certifications: ISO 14001:2015

Third-party Assurance: Deloitte Statsautoriseret Revisionspartnerselskab

UN Sustainable Development Goals

• SDG 3
• SDG 4
• SDG 5
• SDG 8
• SDG 12
• SDG 16

The report highlights how Bavarian Nordic's activities contribute to these SDGs.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environment and Climate
• Employee Health and Safety
• Diversity and Inclusion
• Human Rights
• Anti-Corruption
• Responsible Procurement
• Product Safety

Environmental Achievements

• Reduced CO2 emissions from 2,361 metric tons in 2018 to 2,087 metric tons in 2019, mainly due to higher use of green energy.
• Increased recycling rate from 42% in 2018 to 50% in 2019.
• Decreased hazardous waste by almost 25%.

Social Achievements

• Increased staff by almost 9% in 2019 in preparation for manufacturing expansion and establishment of a new commercial organization.
• High employee engagement survey response rate (89%), showing positive feedback on work-life balance, growth opportunities, and teamwork.
• Reduced occupational accident rate (LTIFR) from 2.7 in 2018 to 2.5 in 2019.
• Maintained equal distribution of men and women in managerial positions.

Governance Achievements

• All employees received training in the Code of Business Conduct and Ethics.
• Established a whistleblower system.
• Board exceeded its target for shareholder-elected women (almost 30% female representation).

Climate Goals & Targets

Environmental Challenges

• Increased energy and water consumption due to construction of a new fill and finish facility.
• Increased overall waste due to the fill and finish facility construction.
• Risk of accidents associated with handling of viruses and chemicals.

Mitigation Strategies

• Continuous improvement in recycling practices (including introduction of additional recycling fractions and food waste collection).
• Thorough risk assessment of the new fill and finish facility, presented to the Danish Environmental Protection Agency.
• Proactive and systematic work in the EHS organization to mitigate risks associated with handling of viruses and chemicals.
• Dialog-based absence management to maintain a lower rate of illness-related absence.

Supply Chain Management

Supplier Audits: Regular audits of suppliers of critical materials and equipment

Responsible Procurement

• Risk assessment of all new suppliers
• Initial audit followed by evaluation every third year

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14001:2015, ISO 45001

Third-party Assurance: Deloitte Statsautoriseret Revisionspartnerselskab

UN Sustainable Development Goals

• SDG 3
• SDG 4
• SDG 5
• SDG 8
• SDG 12
• SDG 13
• SDG 16

Vaccines positively impact 14 of the 17 SDGs.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environment and Climate
• Our People
• Business Ethics

Environmental Achievements

• Increased recycling rate from 50% in 2019 to 53% in 2020
• No breaches of environmental permit for the Kvistgaard facility in 2020

Social Achievements

• Employee engagement survey in 2019 showed engagement surpassing industry levels
• Absence rate of 2.7% in 2020 (target below 4%)
• Maintained equal distribution of men and women in managerial positions

Governance Achievements

• All employees trained in the Code of Business Conduct and Ethics in 2020
• One report through the whistleblower system investigated and handled in accordance with internal procedures

Climate Goals & Targets

Environmental Challenges

• Increased CO2 emissions (22%) due to scale-up of activities, particularly the new fill and finish facility
• Increased water consumption due to validation activities in the new fill and finish facility
• Increased overall waste due to work with the fill and finish facility and new construction

Mitigation Strategies

• Goal to increase overall recycling rate to at least 55% in 2021
• Regular assessments of risks associated with manufacturing activities and their environmental impact
• Continued efforts to improve manufacturing efficiency and processes to optimize energy consumption and minimize emissions and waste

Supply Chain Management

Responsible Procurement

• Risk assessment of all new suppliers of critical materials and equipment
• Initial audit followed by evaluation every third year for suppliers with material impact on product quality and safety

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, UN SDGs

Certifications: ISO 14001:2015, ISO 45001

Third-party Assurance: Deloitte Statsautoriseret Revisionspartnerselskab

UN Sustainable Development Goals

• SDG 3
• SDG 4
• SDG 5
• SDG 8
• SDG 12
• SDG 13
• SDG 16

Vaccines positively impact 14 of the 17 SDGs

Environmental Metrics

ESG Focus Areas

• Environment and Climate
• Our People
• Business Ethics and Governance

Environmental Achievements

• 2% lower emissions compared to 2020
• Increased recycling rate to 55%

Social Achievements

• Completed an employee engagement survey with 82% participation reflecting a high and improved engagement score
• Maintained equal gender distribution among leaders
• Adopted a policy on diversity and inclusion

Governance Achievements

• Launched an updated Code of Conduct for employees and external stakeholders
• Expanded our Ethics Hotline (whistleblower scheme)
• All employees were trained in the Code of Conduct
• Adopted a policy on data ethics

Climate Goals & Targets

Environmental Challenges

• Expected increase in emissions due to facility expansion
• Increased employee turnover (14%)
• Increased sick leave (3.1%) and work-related injuries (LTIFR of 3.9)

Mitigation Strategies

• Setting a baseline for energy consumption in 2022 and identifying initiatives for increased renewable energy use and reduced energy consumption
• Changing company car policy towards electric cars and installing charging stations
• Introducing a new, improved system for wastewater inactivation
• Exploring options to further increase recycling
• Implementing actions based on feedback from the 2021 employee engagement survey
• Maintaining gender equality among leaders
• Increased focus on detection and prevention of absence due to sick leave and occupational accidents

Supply Chain Management

Supplier Audits: Risk assessment of all new suppliers; initial audit followed by evaluation every third year for suppliers with material impact on product quality and safety

Responsible Procurement

• Risk assessment of all new suppliers of critical materials and equipment

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Global Compact

Third-party Assurance: Deloitte Statsautoriseret Revisionspartnerselskab (limited assurance)

Environmental Metrics

ESG Focus Areas

• Patients
• Our People
• Environment & Climate
• Business Ethics & Governance

Environmental Achievements

• Reduced emissions from production by 4%
• Maintained waste recycling rate at 55% despite increased manufacturing activities

Social Achievements

• Decreased work-related injuries, resulting in LTIFR of 1.3 vs. 3.9 in 2021
• Maintained equal gender distribution in all management

Governance Achievements

• Implemented enhanced process for third-party due diligence process for anti-bribery purposes
• Appointed a global Chief Compliance Officer and a US Compliance Officer

Climate Goals & Targets

Environmental Challenges

• Increased total emissions by 10%, mainly driven by the establishment of a sales force in Germany and expansion of facilities
• Increased sick leave from 3.1% in 2021 to 3.7% in 2022
• Increased employee turnover in 2022 due to competition for talent

Mitigation Strategies

• Energy efficiency screening of production facility with planned implementation of solutions to reduce energy consumption in 2023
• Focus on detection and prevention of absence due to sick leave and occupational accidents
• Onboarding and integration of new employees, well-being and people development initiatives in 2023, leadership development program

Supply Chain Management

Supplier Audits: risk assessment of all new suppliers, initial audit followed by evaluation every third year

Responsible Procurement

• Developed responsible sourcing standards for suppliers regarding ethics, human rights, health & safety, and environmental performance

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: TCFD, EU Taxonomy Regulation

Certifications: ISO 14001, ISO 45001

Third-party Assurance: Deloitte Statsautoriseret Revisionspartnerselskab

UN Sustainable Development Goals

• Goal 3: Good Health and Well-being
• Goal 5: Gender Equality
• Goal 8: Decent Work and Economic Growth
• Goal 12: Responsible Consumption and Production
• Goal 13: Climate Action

Improving and saving lives through vaccine development, manufacturing and commercialization

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate change
• Access to vaccines
• Business ethics compliance
• Employee well-being
• Environmental footprint reduction

Environmental Achievements

• Reduced energy consumption per commercial product by 9% at Kvistgaard manufacturing site.
• Implemented technical solutions reducing CO2e emissions by approximately 320 tons (scopes 1 and 2).
• Established a scope 3 emissions inventory (2022 baseline).
• Achieved a 51% waste recycling rate across manufacturing sites.

Social Achievements

• Reduced voluntary employee turnover to 13.1% (below global industry standards).
• Maintained a 40/60 gender ratio in all management.
• Launched a bus service for employees at the Kvistgaard manufacturing site to reduce commuting emissions.
• Donated 44,000 vaccine doses to Turkey after the earthquake.

Governance Achievements

• Established a Sustainability and ESG function.
• Adopted a human rights policy.
• Joined the United Nations Global Compact.
• Applied for and received associate membership with the Pharmaceutical Supply Chain Initiative (PSCI).

Climate Goals & Targets

Environmental Challenges

• Increased overall CO2e emissions due to higher production volumes, new sites (Bern and San Diego), and updated accounting policies.
• Work-related injuries (LTIF) above target.
• Fierce competition for talent in the pharmaceutical industry.
• Increased water consumption due to higher production volumes and new manufacturing site in Bern.

Mitigation Strategies

• Implementing energy-saving initiatives targeting a 500-tonne CO2e reduction in 2024.
• Implementing a ‘Vision 0’ framework to reduce accident frequency.
• Focusing on onboarding, integration, well-being, and people development for employee retention.
• Continuous monitoring of employee engagement and work environment.

Supply Chain Management

Supplier Audits: Risk assessment of all new suppliers; audits every three years for critical suppliers.

Responsible Procurement

• Responsible Sourcing Standards for Suppliers.

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather events impacting operations and value chain.

Transition Risks

• Regulatory changes, market shifts.

Opportunities

• Development of energy-efficient products.

Reporting Standards

Frameworks Used: TCFD, EU Taxonomy, UNGC

Third-party Assurance: Deloitte Statsautoriseret Revisionspartnerselskab