Climate Change Data

Zealand Pharma A/S

Climate Impact & Sustainability Data (2013, 2014, 2019, 2020, 2021, 2022, 2023)

Reporting Period: 2013

Environmental Metrics

ESG Focus Areas

  • Labour Practices & Decent Work
  • Occupational Health & Safety
  • Animal Rights
  • Environmental Sustainability
  • Anti-corruption & Pharmaceutical ethics

Environmental Achievements

  • Water use and emissions fell within a reasonable range for a company of Zealand’s size and type. Investment in a new video conference room significantly reduced travel costs, indirectly contributing to reduced energy expenditure, fuel use, and emission generation.

Social Achievements

  • 92% of employees responded that Zealand is a good place to work in 2013. No significant work-related injuries reported in 2013. Three 'near accidents' were reported and addressed through a Near-Accident Reporting Initiative.
  • Active promotion of an open, inclusive environment for employees, adopting English as the primary language to accommodate international employees. Yearly employee satisfaction study performed.

Governance Achievements

  • Strict policies regarding the proper use and transfer of intellectual property. All employees, Board Members, and certain stakeholders are fully educated in and compliant with the company’s Insider Rules. No indications of violations of anti-corruption or compliance policies in 2013.

Climate Goals & Targets

Environmental Challenges

  • Less favorable performance in energy use due to demanding heating and aeration requirements of research facilities.
Mitigation Strategies
  • Investment in a video conference room to reduce travel and associated emissions.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Global Reporting Initiative (GRI), United Nations Global Compact (UNGC)

Reporting Period: 2014

Environmental Metrics

ESG Focus Areas

  • Labour Practices & Decent Work
  • Occupational Health & Safety
  • Ethics and Quality in relation to Research and Development Activities
  • Environmental Sustainability
  • Anti-corruption & Pharmaceutical ethics

Social Achievements

  • 89% of employees stated Zealand is a good place to work in 2014.
  • No significant work-related injuries in 2014.
  • Four 'near accidents' reported in 2014.

Governance Achievements

  • Implemented a whistleblower program approved by the Danish Data Protection Agency. No issues reported in 2014.
  • Strict policies regarding the proper use and transfer of intellectual property.

Climate Goals & Targets

Short-term Goals:
  • Minimum of 25% AGM elected female board members within 2 years.

Environmental Challenges

  • Less than ideal energy use due to demanding heating and aeration requirements of research facilities.
Mitigation Strategies
  • Frequent use of video conferencing to reduce travel costs and indirectly reduce energy expenditure, fuel use, and emissions.

Supply Chain Management

Responsible Procurement
  • Activities not performed in-house are outsourced to qualified and approved vendors.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Global Reporting Initiative, United Nations Global Compact

Reporting Period: 2019

Environmental Metrics

ESG Focus Areas

  • Employee well-being
  • Gender diversity
  • Environmental sustainability
  • Ethical business practices
  • Patient focus
  • Quality assurance

Environmental Achievements

  • Installed solar panels in new facility
  • Planned electric/hybrid car charging stations
  • Provided ample bicycle parking
  • Enabled teleconferencing in meeting rooms
  • Facilitated rideshare for employees during relocation

Social Achievements

  • Launched Zealand DNA Awards program to recognize employee achievements
  • Provided leadership training to all management levels
  • Conducted workshops to avoid stress among employees
  • Improved gender diversity in management (59% female in 2019 vs 41% in 2018)
  • Maintained a near-accident reporting initiative (3 near accidents in 2019 vs 7 in 2018)

Governance Achievements

  • Implemented a new electronic Document Management System
  • Launched an NDA-readiness program to ensure compliance with commercial operations processes
  • Conducted 21 external audits as part of the Vendor Oversight Program
  • Developed a Data Protection Impact Assessment covering all Clinical Trials
  • Maintained a whistleblower program monitored by an external law firm

Climate Goals & Targets

Long-term Goals:
  • Examine areas to provide relevant metrics and drive measurable improvement in environmental impact
  • Minimize environmental impact and encourage employees to continue with environmental and climate-friendly initiatives
Medium-term Goals:
  • Continue to mature and continuously improve the Quality System required for late stage and commercial operations
  • Continue oversight of outsourced activities based on quality risk management principles
  • Build organization and operations in the United States to foster a medical and patient-community network
Short-term Goals:
  • Maintain employee engagement as reflected in annual engagement survey scores
  • Achieve absence rate at the same level or lower than previous years
  • Launch readiness program to ensure delivery to market once regulatory approval is obtained
  • Apply for a manufacturing authorization §39 at the Danish Medicines Agency

Environmental Challenges

  • Employee turnover (12% in 2019 vs 6% in 2018)
  • Data unavailability for absence rate calculation in 2019
  • Risk of non-compliance by external partners performing GxP activities
  • Risk of employee and business partner violation of anti-corruption commitment
Mitigation Strategies
  • Vendor oversight program to assess GxP vendors
  • Whistleblower program and insider information list to mitigate anti-corruption risks
  • Systemic efforts to maintain a safe and healthy work environment, including regular workplace audits and risk assessments
  • Ongoing efforts to maintain a healthy and motivating working environment

Supply Chain Management

Supplier Audits: 21 external audits

Responsible Procurement
  • Assessment of vendors based on business ethics, capability, capacity, quality audits, supplier management assessment, and financial stability

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Guiding Principles on Business and Human Rights, Selected UN Sustainable Development Goals

UN Sustainable Development Goals

  • SDG 3
  • SDG 5
  • SDG 10
  • SDG 12
  • SDG 16
  • SDG 17

The report highlights how Zealand Pharma's initiatives contribute to these goals.

Reporting Period: 2020

Environmental Metrics

ESG Focus Areas

  • Employee well-being
  • Diversity and Inclusion
  • Environmental Sustainability
  • Ethical Business Practices
  • Patient Focus

Environmental Achievements

  • Relocated to new, more energy-efficient facilities in Denmark with solar panels and electric vehicle charging stations.
  • Implemented teleconferencing and video conferencing to minimize travel.

Social Achievements

  • Launched BIG (Belonging, Inclusion, and Growth) initiative to foster diversity and inclusion.
  • Employee turnover decreased to 9.1% from 12% in 2019.
  • Annual employee engagement survey showed 91.5% favorable responses.

Governance Achievements

  • Maintained a whistleblower program monitored by an external law firm.
  • Updated policies and standard operating procedures.
  • No issues reported under the whistleblower program.

Climate Goals & Targets

Medium-term Goals:
  • Examine areas to provide relevant environmental metrics and drive measurable improvement.
  • Continue to minimize environmental impact and encourage employee participation in environmental initiatives.
Short-term Goals:
  • Maintain employee engagement as reflected in annual survey scores.
  • Maintain or lower absence rate compared to previous years.
  • Ensure all accidents are reported and employee safety is maintained or improved.

Environmental Challenges

  • Maintaining a safe and healthy work environment.
  • Ensuring compliance with pharmaceutical quality standards by external partners.
  • Potential legal and financial consequences of employee or business partner violations of anti-corruption commitments.
Mitigation Strategies
  • Systematically maintaining a safe and healthy work environment with regular risk assessments and near-accident reporting.
  • Vendor oversight program with thorough and ongoing assessment of all GxP vendors.
  • Whistleblower program and insider information list to mitigate corruption risks.

Supply Chain Management

Supplier Audits: 24 audits conducted in 2020

Responsible Procurement
  • Focus on business ethics, capability, and capacity of vendors; quality audits, supplier management assessment, and financial stability are elements in the assessment.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Guiding Principles on Business and Human Rights, Selected UN Sustainable Development Goals

UN Sustainable Development Goals

  • SDG 3
  • SDG 5
  • SDG 10
  • SDG 12
  • SDG 16
  • SDG 17

The report highlights how Zealand Pharma's initiatives contribute to these goals through various programs and policies.

Reporting Period: 2021

Environmental Metrics

ESG Focus Areas

  • Employee well-being
  • Patient care
  • Ethical business conduct
  • Environmental impact

Environmental Achievements

  • Implemented energy efficiency measures in Copenhagen facility (upgrading air conditioning, reducing waste pickups, installing sunscreens)
  • Introduced ESG goals for 2022 management bonus

Social Achievements

  • 88% response rate on employee engagement survey with 87.5% favorable responses
  • Reduced near accidents to 4 (from 7 in 2020)
  • No significant work-related injuries

Governance Achievements

  • Updated policies and standard operating procedures
  • Revisited whistle-blower program to comply with the Whistleblower Protection Act

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Achieve balanced gender representation at all management levels
  • Further develop collaboration with suppliers
  • Continue to mature and update Quality Management System
Short-term Goals:
  • Maintain or reduce absence rate
  • Prevent all accidents
  • Continue collaboration with patient organizations

Environmental Challenges

  • Maintaining a safe work environment in laboratory operations
  • Ensuring compliance with pharmaceutical quality standards by external partners
  • Maintaining ethical standards and safeguarding against corruption
  • Reducing environmental impact
Mitigation Strategies
  • Systematic maintenance of a safe and healthy work environment, including regular risk assessments and OSHA committee surveys
  • Supplier oversight program to assess GxP suppliers
  • Whistle-blower program monitored by an external law firm
  • Policies and procedures to encourage recycling, efficient use of electricity and heating, and responsible travel; sourcing power from sustainable sources

Supply Chain Management

Responsible Procurement
  • Rigorous vendor selection process focusing on business ethics, business continuity, capability, and capacity

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Guiding Principles on Business and Human Rights, Selected UN Sustainable Development Goals

UN Sustainable Development Goals

  • SDG 3
  • SDG 5
  • SDG 10
  • SDG 12
  • SDG 16
  • SDG 17

The report highlights how Zealand Pharma's initiatives contribute to these goals.

Reporting Period: 2022

Environmental Metrics

ESG Focus Areas

  • Employee well-being
  • Patient needs
  • Ethical business conduct
  • Environmental impact

Environmental Achievements

  • Implemented initiatives to minimize energy consumption at Copenhagen facility (upgrading AC units, reducing waste pickups, installing sunscreens)
  • Reduced heating usage at headquarters
  • Introduced policies to include climate actions as a selection criterion for vendors
  • Added electric car charging capacity at Copenhagen facility
  • Switched to certified sustainable energy sources for electricity

Social Achievements

  • Introduced flexible hybrid working environment
  • Conducted employee engagement survey with 91.4% response rate and 87.6% favorable responses
  • Enhanced gender balance in Corporate Management with the hiring of a female CFO
  • Maintained a low rate of 'obligated to notify' accidents (zero in 2022)

Governance Achievements

  • Continued focus on Privacy regulation and GDPR compliance
  • Code of business conduct included in new employee onboarding
  • All employees digitally confirmed understanding of Code of Business Conduct every two years
  • Maintained a whistle-blower program monitored by an external law firm

Climate Goals & Targets

Medium-term Goals:
  • Establish a Supplier Code of Conduct including environmental criteria
  • Develop taxonomy for ESG reporting
Short-term Goals:
  • Lower employee turnover rate
  • Maintain absence rate at or below previous years' levels
  • Continue focus on employee engagement, communication, and work-life balance

Environmental Challenges

  • High employee turnover (38.7% in 2022 for Denmark-based employees)
  • Reliance on external partners for GxP activities posing risks to patient safety and product quality
  • Inherent risks associated with toxic chemicals used in drug discovery
  • Potential for employees and business partners to violate anti-corruption commitments
Mitigation Strategies
  • Focus on lowering employee turnover rate through improved working environment and talent acquisition
  • Supplier oversight program including audits and ongoing assessment of GxP supplier performance
  • Upgraded working instructions to minimize risks associated with toxic chemicals
  • Whistle-blower program and insider information list to mitigate anti-corruption risks

Supply Chain Management

Supplier Audits: 25 audits completed in 2022

Responsible Procurement
  • Rigorous vendor selection process focusing on business ethics, business continuity, capability, and capacity

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Danish Financial Statements Act, UN Guiding Principles on Business and Human Rights, Selected UN Sustainable Development Goals

UN Sustainable Development Goals

  • SDG 3
  • SDG 5
  • SDG 10
  • SDG 12
  • SDG 16
  • SDG 17

Zealand's initiatives contribute to these goals through various programs and policies related to employee well-being, patient care, ethical conduct, environmental sustainability, and responsible business practices.

Reporting Period: 2023

Environmental Metrics

Renewable Energy Share:100% (Copenhagen facilities)

ESG Focus Areas

  • Our patients
  • Our people
  • Our operations

Environmental Achievements

  • Continued certified electricity at Copenhagen facilities (100% sustainable energy)
  • Implemented policy for all new company cars to be electric, with a goal of all company cars being electric by 2027
  • Significantly expanded charging stations

Social Achievements

  • Onboarded 88 employees
  • Low employee turnover rate of 10.3%
  • High employee engagement score of 8.8/10
  • Advanced double materiality assessment to identify ESG focus areas

Governance Achievements

  • Completed independent review of Board performance
  • Achieved all ESG sub-goals linked to performance-based remuneration
  • Advanced double materiality assessment to prepare for CSRD

Climate Goals & Targets

Medium-term Goals:
  • Explore setting an emission reduction target (2024)
Short-term Goals:
  • Calculate CO2 baseline (2024)
  • Establish ESG reporting framework to prepare for CSRD (2024)
  • Launch refined ESG strategy (2024)

Environmental Challenges

  • Challenging financing environment for biotechnology companies
  • Potential supply chain disruptions from climate or geopolitical events
  • Risks associated with outsourcing GxP activities to third-party suppliers
  • Cyberattacks
  • Patent infringement claims
Mitigation Strategies
  • Raised DKK 1.5 billion (USD ~220 million) in April and DKK 1.45 billion (USD 214 million) in January 2024
  • Secured a new credit facility with Danske Bank and a loan agreement with the European Investment Bank
  • Regular supplier audits to ensure quality and compliance
  • Qualified IT professionals and external cybersecurity vendors
  • Close collaboration with external patent counsels

Supply Chain Management

Responsible Procurement
  • Supplier Code of Conduct
  • Environmental criteria for selecting CMOs

Climate-Related Risks & Opportunities

UN Sustainable Development Goals

  • SDG 3
  • SDG 5
  • SDG 10
  • SDG 12
  • SDG 16
  • SDG 17

Aligned with business impact and connect Zealand’s efforts with those of other companies to address global challenges.