Climate Change Data

LEO Pharma A/S

Climate Impact & Sustainability Data (2021, 2022)

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:23,144 tCO2e
Scope 1 Emissions:22,559 tCO2e
Scope 2 Emissions:585 tCO2e (market based)
Scope 3 Emissions:No 2021 data available
Renewable Energy Share:92%
Total Energy Consumption:150 GWh
Water Consumption:384,046 m3
Waste Generated:125,489 tons
Carbon Intensity:2.324 tonnes/revenue (2021)

ESG Focus Areas

  • Climate Action
  • Diversity & Inclusion
  • Employee Health, Safety & Wellbeing
  • Ethical Business Conduct
  • Responsible Supply Chain
  • Data Privacy & Security

Environmental Achievements

  • Reduced total CO2e Scope 1 and 2 emissions by 25.7% compared to 2020, and by 40.3% compared to 2019.
  • Increased share of renewable electricity to 92%, mainly driven by Segrate (IT) moving to 100% renewable electricity.

Social Achievements

  • Launched Lead Inclusively leadership learning journey.
  • Launched Ignite Inclusion social learning events for employees.
  • Introduced a global flexible working policy.

Governance Achievements

  • Relaunched LEO Pharma Code of Conduct and related training for all employees globally.
  • Implemented new system for Speak Up Line, replacing Whistleblower Hotline.
  • Developed a Data Ethics Policy.

Climate Goals & Targets

Medium-term Goals:
  • Ensure that 75% of suppliers by emissions have set science-based targets by 2026
Short-term Goals:
  • Reduce Scope 1 and 2 CO2 emissions by more than 50% by 2030 compared to 2019 levels

Environmental Challenges

  • Increasing energy prices in Europe impacting manufacturing sites.
  • Gender imbalance in senior management.
  • Risk of non-compliance with new human rights legislation.
  • Risk of corruption in interactions with third parties.
Mitigation Strategies
  • Implementing energy efficiency projects and energy hedging.
  • Diversity and Inclusion strategy focusing on culture and structures.
  • Established a Human Rights Working Group to support the development of a consistent Human Rights Due Diligence process.
  • Global Anti-Corruption efforts to ensure employee knowledge to prevent and detect corruption.

Supply Chain Management

Supplier Audits: 5 EHS desktop audits of CMOs/API suppliers

Responsible Procurement
  • Sustainability Standards for LEO Pharma Business Partners
  • Membership in Pharmaceutical Supply Chain Initiative (PSCI)

Climate-Related Risks & Opportunities

Transition Risks
  • Increasing energy prices

Reporting Standards

Frameworks Used: SASB

Certifications: ISO 50001, ISO 14001, ISO 45001

UN Sustainable Development Goals

  • Goal 5
  • Goal 7
  • Goal 8
  • Goal 12
  • Goal 13
  • Goal 16

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:31,130 tonnes CO2e (Scope 1 and 2)

ESG Focus Areas

  • Environment
  • Social
  • Governance

Environmental Achievements

  • CO2e emissions reduced in line with 2030 target trajectory. Climate targets validated by the Science Based Target initiative.

Social Achievements

  • Improved gender diversity in middle and senior management. Achieved global LTI rate goal of < 2.0 at manufacturing sites for the fourth year in a row. Global Code of Conduct training completion rate increased to 97%.

Governance Achievements

  • Continued to manage ESG risks and opportunities across global business. 97% of employees completed global annual Code of Conduct training.

Climate Goals & Targets

Long-term Goals:
  • Reduce carbon emissions from own operations by more than 50% from 2019 to 2030
  • Ensure 75% of suppliers by emissions have set science-based targets by 2026
Medium-term Goals:
  • Profitable growth by 2025
Short-term Goals:
  • Deliver positive EBITDA in 2023

Environmental Challenges

  • Supply chain disruptions on our production site at the beginning of the year impacting Innohep® sales. Increasing raw material, distribution, energy and interest costs.
  • Increased cost-consciousness of payers and patients increasing pricing pressures.
  • Cyber security threats.
  • Macroeconomic pressures from inflation and interest rates, energy crisis, and stagnating global trade growth.
  • Risk of supply disruptions due to unique manufacturing lines and reliance on contract manufacturers.
  • Risk of corruption in countries with high perceived levels of corruption and weak law enforcement.
Mitigation Strategies
  • Implementing efficiencies, simplification and cost reductions to improve operating profit.
  • Working closely with payers and other stakeholders to demonstrate the value of our products and contain increases in production costs.
  • Implementing several mitigating measures to manage exposure from cyber security threats, including information security awareness training and improving technical capabilities.
  • Working closely with regulatory authorities to respond promptly to their requests.
  • Closely monitoring market access and pricing developments and requirements, working with payers, advocacy groups and authorities to document the value of products.
  • Evaluating strategies for increased internal capability or external sourcing, monitoring and upgrading manufacturing lines, and keeping safety stock.
  • Continuously reviewing contracts to monitor potential breach of minimum ordering clauses with CMOs.
  • Conducting anti-corruption due diligence for selected types of third-party intermediaries.

Climate-Related Risks & Opportunities