Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment, Health & Safety
• Social Responsibility
• Ethics
• Patient Centricity

Environmental Achievements

• Achieved Ipsen carbon reduction goal two years ahead of schedule (2020 target)
• Achieved EHS top 10 with biotech peers

Social Achievements

• Launched One Ipsen Way of Being, a charter built on five pillars representing employee behaviors
• Shared company success with employees through a share ownership plan and bonus shares
• Integrated social responsibility into the Ethics & Compliance department
• Developed a new Code of Conduct

Governance Achievements

• Reviewed anti-corruption risk approach and revised the compliance program
• Developed a more global, simple, effective, and user-friendly compliance approach
• Integrated social responsibility into the Ethics & Compliance department

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

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

The 10-year plan (2019-2030) will tackle the 17 UN Sustainable Development Goals.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• CSR awards received at Signes

Environmental Metrics

ESG Focus Areas

• Patients' lives
• Integrity
• Employees' excellence and engagement
• Environmental impact
• Human Rights

Environmental Achievements

• Reducing energy consumption and impact on climate change
• Responsibly manage waste, water and air emissions

Social Achievements

• Attracting the best talents
• Enhancing employees’ engagement
• Providing a healthy and safe workplace
• Enlarging access to medicine
• Committed to fight against counterfeit products
• Promoting products responsibly

Governance Achievements

• Committed to protect personal data
• Fighting corruption
• Promoting and defending Human Rights

Climate Goals & Targets

Environmental Challenges

• Market competition and dependence on products
• Risks of failure in Research and Development
• Risks of cyberattacks
• Failure of third parties
• Risks related to drug approval, pricing and reimbursement
• Risks associated with international activities
• Risks related to acquisition and integration activities
• Business Ethics risks
• Supply shortages and other disruptions risks
• Environment and safety risks
• Exchange rate risks
• Interest rate risks
• Liquidity and counterparty risks
• Share price fluctuation
• Risks related to intellectual property
• Undesired disclosure of critical information
• Counterfeiting risks
• Product liability risks
• Legal and administrative proceedings

Mitigation Strategies

• Robust risk management and internal control framework
• Insurance programs
• Hedging strategies
• Diversification of counterparties
• Compliance programs
• Business continuity plans
• Due diligence processes
• Ethical guidelines and training
• Supply chain management
• Environmental protection measures
• Data security measures

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Environmental Metrics

ESG Focus Areas

• Employees
• Communities
• Environment

Environmental Achievements

• 12% reduction of greenhouse gas emissions compared to 2019 (scope 1 & 2 without car fleet emissions)
• 16% decrease in energy use since 2016
• 8% reduction in carbon emissions in 2020 alone, far surpassing our 3% target (intensity achievements (tons of CO2 per square meter))
• 38% reduction in water consumption compared to 2019

Social Achievements

• Increased efforts to support and maintain an open dialogue with 210 patient organizations
• Ipsen in Motion initiative raised €50,000 toward medical research
• Donation of €70,000 to International Health Partners
• Medicalized accident frequency rate decreased to 0.31 in 2020, down from 1.45 in 2018
• 42% gender balance in the Global Leadership Team

Governance Achievements

• Incorporation of CSR initiatives into the ELT's Long-Term Incentive (LTI) Plan
• 37 matters reported to Business Ethics in 2020, demonstrating a "Speak Up" culture
• Completion rate of employee training on the Code of Conduct 94%

Climate Goals & Targets

Environmental Challenges

• Competition from generic drugs (Somatuline®)
• Need to optimize cost structure
• Need to improve external innovation
• Market competition
• Dependence on key products
• Supply chain disruptions
• Environmental risks
• Exchange rate risks
• Regulatory and legal risks
• Intellectual property risks
• Data security risks

Mitigation Strategies

• Seeking new growth markets and external innovation partnerships
• Smart spending initiatives and manufacturing efficiencies
• Licensing several new compounds annually
• Developing new sustainability measures
• Insurance coverage
• Hedging foreign currency cash flow
• Strict procedures for data protection
• Tailored and regularly updated trainings on data protection

Supply Chain Management

Supplier Audits: Partnership with EcoVadis to evaluate sustainability of critical suppliers

Responsible Procurement

• Ensuring raw materials are responsibly sourced

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: ISO 14001 (environment), OHSAS 18001 (health and safety), ISO 50001 (energy savings) at Dreux site

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Shingo Gold Prize for Signes manufacturing site

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Patient-centricity
• Community Engagement
• Environmental Sustainability

Environmental Achievements

• 100% green electricity for all operations in the UK, Ireland, and France
• 88% of global electricity use from renewable energy (as of April 2021)
• 15% reduction in volatile organic compound emissions compared to 2019 baseline
• 18% reduction of greenhouse gas emissions compared to 2019 (scope 1 & 2 without car fleet emissions)

Social Achievements

• 1,800+ employees participated in more than 125 activities across 38 countries for Ipsen Community Day
• 1,150 employees took part in Ipsen in Motion, raising over €50,000 for social causes
• 98% of employees have a formalized development plan
• 77% overall employee engagement score
• 42.3% female representation on the Global Leadership Team

Governance Achievements

• ISO 37001 certification for anti-bribery and corruption management system
• 19 external recognitions as a Top Employer/Great Place to Work®

Climate Goals & Targets

Environmental Challenges

• Market competition and product dependence (e.g., generic competition for Somatuline®)
• Cybersecurity risks
• Systemic events (e.g., pandemics, geopolitical conflicts) disrupting supply chains
• Exchange rate fluctuations
• Share price volatility
• Intellectual property protection
• Risk of undesired disclosure of critical information
• Product liability risks
• Supply chain shortages and disruptions
• Stricter environmental legislation and enforcement

Mitigation Strategies

• Risk monitoring and market leadership expansion strategies (Somatuline®)
• Group-wide cybersecurity plan
• Business continuity measures
• Foreign exchange rate hedging policy
• Financial controlling and Investor Relations
• Procedures to control dissemination of sensitive information
• Pharmacovigilance, Quality, and Technical Operations controls
• Sufficient insurance coverage
• Risk identification, improved manufacturing, and security stocks
• Environment Health and Safety (EHS) governance, energy consumption reduction, and environmental impact mitigation

Supply Chain Management

Climate-Related Risks & Opportunities

UN Sustainable Development Goals

• Goal 3: Good Health and Well-being
• Goal 8: Decent Work and Economic Growth
• Goal 12: Responsible Consumption and Production
• Goal 13: Climate Action
• Goal 17: Partnerships for the Goals

Ipsen's CSR strategy aligns with these SDGs through initiatives related to product quality, supply chain, data privacy, anti-corruption, human rights, employee engagement, environmental protection, and community engagement.

Awards & Recognition

• 19 recognitions as a Top Employer/Great Place to Work®

Environmental Metrics

ESG Focus Areas

• Patients' lives
• Integrity
• Employees' excellence and engagement
• Environmental impact

Environmental Achievements

• More than 85% of its electricity consumption worldwide comes from renewable energy sources.
• Halving absolute GHG emissions from the Group's infrastructure and automotive fleet by 2030.

Social Achievements

• Launched employee well-being programs
• Commitment to diversity and inclusion

Governance Achievements

• Strong governance structure for CSR
• Robust anti-corruption system

Climate Goals & Targets

Environmental Challenges

• Competition from major international pharmaceutical groups
• Market access challenges (price pressure, reimbursement policies)
• Cyberattacks
• Geographical risks (regulatory, political, economic changes)
• Human resources risks (attraction and retention)
• Research and development risks (clinical trial failures, regulatory approvals)
• Supply shortages and disruptions
• Environmental and safety risks
• Product liability and counterfeiting
• Intellectual property risks (patent expirations, challenges)
• Undesired disclosure of critical information
• Legal and administrative proceedings
• Exchange rate fluctuations
• Liquidity and counterparty risks
• Share price fluctuations
• Business Ethics risks (off-label promotion, conflicts of interest, corruption, non-compliance)

Mitigation Strategies

• Active business development and partnership strategies
• Robust internal control and risk management systems
• Cybersecurity plan
• Dedicated teams for managing geographical risks
• Human resources action plan (employer value proposition, engagement initiatives, compensation)
• Investment in internal and external innovation
• Supply chain risk management (robust manufacturing, supplier relationships, security stocks)
• Environment, Health and Safety (EHS) governance
• Pharmacovigilance, Quality, and Technical Operations controls
• Intellectual property strategy
• Procedures to control dissemination of critical information
• Insurance coverage
• Foreign exchange hedging policy
• Diversification of counterparties
• Business Ethics program (Code of Conduct, training, monitoring)

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Environmental Metrics

ESG Focus Areas

• Environment
• Patients
• People
• Governance

Environmental Achievements

• 53% reduction in absolute facility and fleet (Scopes 1 & 2) carbon emissions vs 2019 base year
• 95% of electricity used in Ipsen facilities is renewable
• 51% of waste from Ipsen facilities is now sent for recycling or recovery treatment (up from 22% in 2019)
• 36% reduction in absolute Scope 1 and 2 emissions in 2023 compared to 2019

Social Achievements

• Launched Together for Kidney Cancer, a global disease-awareness initiative
• Global Leadership Team gender target exceeded – 53% women in 2023
• Ipsen in Motion global sports challenge raised money for various organizations
• 25 Ipsen sites received external certifications for culture
• 90% of employees defined a career interest and 96% updated their development plan in 2023

Governance Achievements

• ISO 37001 certification for anti-corruption management systems
• Reduced data breaches to only one in 2023
• Senior-leadership compensation linked to achievement of bolder ESG targets

Climate Goals & Targets

Environmental Challenges

• Supply shortages due to systemic, regulatory or technical issues
• Patent expiration leading to generic competition
• Potential for acquisitions to fail or underperform
• Share price fluctuation due to various factors
• Data leaks

Mitigation Strategies

• Robust and continuous improvement of manufacturing processes, critical suppliers risk management, insurance prevention actions, capital investments, security stocks and business continuity plans
• Strong IP strategy
• Thorough due diligence for acquisitions
• Diversified and balanced portfolio
• Enhanced mandatory annual training modules for employees on data protection

Supply Chain Management

Responsible Procurement

• Sustainable value chain opportunities

Climate-Related Risks & Opportunities

Physical Risks

• Business and supply chain disruption

Transition Risks

• Impact on investor confidence and talent retention

Reporting Standards

Frameworks Used: UN Global Compact

Certifications: ISO 37001

UN Sustainable Development Goals

• 3
• 5
• 6
• 8
• 9
• 12
• 13
• 15
• 16
• 17

The report details how Ipsen's initiatives contribute to these goals throughout the document.

Awards & Recognition

• Great Place to Work® in 25 countries
• Gold Shingo award for operational excellence at Signes site