Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Governance
• Access to Medicines
• Responsible Procurement
• Employee Well-being
• Product Quality and Safety
• Resource Consumption and Waste
• Decarbonization

Environmental Achievements

• Reduced absolute carbon emissions by ~16% (2020-2022)
• Integrated 5R strategy into product design process
• Implemented pilot projects to reduce packaging and use recycled PET

Social Achievements

• Achieved LTI Rate of 0.35
• Launched HERO Learning platform for employee development
• Increased percentage of women in management positions
• Maintained high employee engagement score of 8/10

Governance Achievements

• Established organizational structure for ‘Responsible Procurement’
• Started EcoVadis program for supplier ESG rating
• Published first full Sustainability Report 2021 (PwC limited assurance)
• Received good external rating by Sustainalytics

Climate Goals & Targets

Environmental Challenges

• Global increase in energy prices
• International market turbulence due to the war in Ukraine
• Potential shortage of raw materials
• Lack of respect for human rights in the supply chain
• Non-compliance with laws and regulations
• Lack of talents and motivation
• Hacker attacks
• Shortage of medicines
• Lack of meeting all requirements of patient groups and healthcare system
• Lack of particular products or launch delay
• Change of regulatory requirements to propose more sustainable aspects of products and packaging
• Lack of providing all potentially applicable kinds of education to each employee, due to budget limitations

Mitigation Strategies

• Better and more agile planning; identifying alternative suppliers
• Offering benefits for improved prevention and good therapy
• Improvement of education on this topic within the Group and its supply chain
• Improvement of respect for human rights. Education on respect for human rights and compliance. Whistleblowing policy being available to all employees
• Developing knowledge and responsibility in prevention and leading healthy lifestyle
• Regular pulse surveys for employee satisfaction. Constant investments in human capital development
• Strictly following laws and regulations with proactive legal and compliance assessment within own operations and the supply chain
• Proactive alignment with trends and regulations with industry benchmarking
• Change / development of business practice with new expectations of potential employees (peers, Gen Z, etc.)
• Personal development of employees, together with rising their motivation and satisfaction
• Transparent approach to CSR and decision making process
• Improving local communities and public healthcare systems
• Constant scanning of public healthcare needs for support, together with patient groups
• Constant assessment of operations and suppliers’ interactions by legal and compliance functions
• Improvement of employee education and overall business standards
• Constant development of global corporate policies to meet ESG and other ethical standards
• Constant investment in employee training and development
• Compliance with all applicable laws and regulations (i.e. GDPR)
• Strictly following all applicable regulations and procedures, with focus on pharmacovigilance
• Constantly benchmarking business peers and potential employees’ expectations (i.e. Gen Z)
• Human capital constant development with overall improvement of pharma branch professionals
• Using EcoVadis platform for ESG suppliers’ assessment, together with education and motivation of suppliers and partners
• IT security infrastructure development and capacity building
• Suppliers’ reliability improvement
• Better engagement with stakeholders in mapping AtM needs and healthcare requirements
• Full compliance with laws and regulations with agile risk and prevention management system
• Improved HSE practices via new legislation, standards and/or education
• Overall improvement of ESG performance within business sector with positive selection of ESG reliable and compliant suppliers
• Full alignment with laws and regulations, together with following all tangible HR trends
• Improved OHS practices via new policies, procedures and/or education
• Proactive risk and prevention management system, trainings and audits/reviews
• Full compliance with laws and regulations
• Continuous education and close engagement with all relevant stakeholders
• Proactive approach to realizing patients’ needs as well as potentials to support availability of medicines through efforts of healthcare systems and patient groups
• Closer and more frequent stakeholder engagement in predicting future needs within AtM aspects
• New prevention and therapy options through modern and affordable portfolio
• Scientifically backed predictiveness and market analysis in order to meet healthcare demand on time
• Planning on time and full compliance with laws and regulations, enabled by reliable supply chain
• Further development of sustainable products and packaging, together with portfolio optimization, based on 5R logic
• Proactivity in realizing ESG trends and customer needs, combined with industry benchmarks
• Better budget planning and allocation of resources

Supply Chain Management

Supplier Audits: 148 audit requests in 2022

Responsible Procurement

• EcoVadis platform for ESG assessment
• Supplier Code of Conduct (to be implemented in 2023)

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 14001 (10 sites), ISO 45001 (8 sites)

Third-party Assurance: PricewaterhouseCoopers GmbH Wirtschaftsprüfungsgesellschaft (limited assurance)

UN Sustainable Development Goals

• SDG 3
• SDG 8
• SDG 9
• SDG 12
• SDG 17

STADA's initiatives contribute to these goals through affordable medicines, fair working conditions, sustainable production, stakeholder engagement, and responsible business practices.

Sustainable Products & Innovation

• Recycled packaging
• Digital leaflets

Awards & Recognition

• Top Employer Europe
• Effie Silver award (Serbia)
• Health Care and Social Welfare award (Serbia)
• Eskulap Award (Serbia)
• Bronze Effie award (Belgium)
• Global Generics & Biosimilars Awards 2022 Intellectual Property Initiative of the Year

Environmental Metrics

ESG Focus Areas

• Good Health and Well-being
• Decent Work and Economic Growth
• Industry, Innovation, and Infrastructure
• Responsible Production and Consumption
• Partnership for the Goals

Environmental Achievements

• Reduction of absolute carbon emission by ~ -25% (2020–2023)
• Evaluation and calculation of STADA’s Scope 3 emissions (2022)

Social Achievements

• % of women at all management levels remained above 50%
• LTI Rate of 0.28 achieved
• Improved access to medicines program with offering more potentials in affordable prevention and therapy

Governance Achievements

• Further implementation of responsible procurement approach and >700 of our prioritized suppliers assessed by EcoVadis
• Publishing of STADA Business Partner Code of Conduct
• Second full Sustainability Report 2022 published in 2023 (audited by PwC with limited assurance)

Climate Goals & Targets

Environmental Challenges

• Global increase in energy prices
• Turbulence on the international market due to the war in Ukraine and military operations in Gaza, with its accompanying humanitarian and economic consequences

Mitigation Strategies

• Separation of Russian business activities
• Increase of renewable energy sources
• Proactive GHG management along long-term reduction targets

Supply Chain Management

Supplier Audits: 723 suppliers assessed by EcoVadis

Responsible Procurement

• EcoVadis rating
• STADA Business Partner Code of Conduct
• German Supply Chain Act compliance

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 14001, ISO 45001

Third-party Assurance: PricewaterhouseCoopers GmbH Wirtschaftsprüfungsgesellschaft (limited assurance)

UN Sustainable Development Goals

• SDG 3
• SDG 8
• SDG 9
• SDG 12
• SDG 17

STADA's initiatives contribute to these SDGs through its business operations and community engagement.

Sustainable Products & Innovation

• Products with recycled packaging
• Zoflora refill

Awards & Recognition

• Top Employer Europe
• Effie marketing award (EG STADA)
• Excellence Award for Leadership (Mihai Fugarevici)
• 18 awards for Hemofarm Foundation

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced carbon emissions by 25% between 2020 and 2023
• 45% of STADA’s electricity consumption from renewable sources

Social Achievements

• 89% of employees confident in achieving business objectives
• 84% of employees feel self-empowered
• 52% of management positions held by women
• Average number of full-time employees rose by 2% to 11,540

Governance Achievements

• Improved Sustainalytics ESG Risk Rating Score from 21.6 (Medium Risk) to 18.1 (Low Risk)

Climate Goals & Targets

Environmental Challenges

• Weak cough and cold season impacting Consumer Healthcare revenues
• Challenging macroeconomic environment with stagnating major economies and persistent inflation

Mitigation Strategies

• Successful strategy execution with strong supply reliability and competitive prices in Generics
• Brand activation in pharmacies for Antistax
• Extensions to Nizoral and Eunova product lines
• Partnerships in China and the Philippines

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Global Compact