Pharmaceuticals - Roberts Environmental Center
Transcription
Pharmaceuticals - Roberts Environmental Center
McKesson, Cardinal Health, AmerisourceBergen, Johnson & J o h n s o n 2012 , P Sustainability fi z e r , RReporting oche Group, G l aofxtheoWorld’s S m iLargest t h KDrugs l i nand e ,Biotech N oCompanies vartis, (*Pharmaceuticals) Sanofi-Aventis, AstraZeneca, Abbott Laboratories, Merck ck & Co, Eli Lilly, Bristol-Myers ers rs Squ rs SSquibb Sq Squibb, quibb, qu qui q uibb, Su uibb, Suz SSuzuk Suzuken, u Takeda Pharmaceutical, Amgen, Teva Pharmaceutical eu eu eutical utical tical ti iicall IInds, Inds d Th T The h e Merck Group, Astellas ellas ella ll Ph Pharma, Pharma h , No N Nov Novo ov vo N Nordisk, Daiichi Sankyo, nkyo nkyo, kyo k kyo, ky y , Toho yo, T h Holdin Holding H Holdings, ld ldings EISAI, Gilead Sciences, ences een ences, nces n nces, ces, ces, My M Mylan yllan a Lab Labo Labor Laboratories, L Laab b Genzyme, Allergan, All llergan lll llergan lergan, eergan, g , Bi Biogen g Idec I Id Inc., a n d U C B Pacific Sustainability Index Scores: A benchmarking tool for online sustainability reporƟng J.Emil Morhardt, ElgeriƩe Adidjaja, RaƟk Asokan, Simone Berkovitz, Leah Bross, Carolyn Campbell, Quinn Chasan, Jaclyn T. D'Arcy, Whitney Ellen Dawson, Karen de Wolski, Elizabeth Duckworth, Erin Franks, Karina Gomez, Hilary Haskell, Alan Hu, Bukola Jimoh, Sam Kahr, Eric Robert King, Jordan Lieberman, Danielle L. Manning, Erin Mastagni, Stephanie Oehler, Daniel Olmsted, Ashley ScoƩ, Michael Handler Shoemaker, and Sachi Singh. *This report is based on companies in the Forbes 2010 Drugs and Biotechnology sector, roughly equivalent to the Fortune Magazine PharmaceuƟcal sector used in our previous reports. Contents Topics Company Rankings PSI Overview PSI Scoring in a Nutshell Environmental Intent Topics Environmental Reporting Topics Social Intent Topics Social Reporting Topics Environmental Intent Element of the PSI Scores Environmental Reporting Element of the PSI Scores Social Intent Element of the PSI Scores Social Reporting Element of the PSI Scores Environmental Intent Scores Ranking Environmental Reporting Scores Ranking Environmental Performance Scores Ranking Social Intent Scores Ranking Social Reporting Scores Ranking Social Performance Scores Ranking Human Rights Reporting Element Performance by Country Visual Cluster Analysis Relationship Between PSI Scores and Financial Variables Number of Explicit numerical goals Reported Number of Topics Showing Performance Improvement over Previous Year Data Number of Topics in which Performance was Better than Sector Average Analyst’s Comments, alphabetically listed by company name Appendix: PSI Questionnaire Page 3 4 5 6 7 8 9 10 11 The Roberts Environmental Center has been the foremost analyst of corporate sustainability reporting for over a decade. We analyze corporate online disclosure using our Pacific Sustainability Index (PSI) and publish the results online. Industrial Sector** 2 0 0 4 2 0 0 5 Banks, Insurance Chemicals 60 Questions should be addressed to: Elgeritte Adidjaja, Research Fellow (909) 621-8698 ([email protected]) X X X X X X X X X X X X X X X Federal Agencies Food Services X X X X X General Merchandiser X Homebuilders X X X X X X X X X* X X * X X X X X X X X X Petroleum & Refining X Pharmaceuticals X Scientific, Photo, & Control Equipment Telecommunications, Network, & Peripherals Transportation X X Municipalities Oil and Gas Equipment Dr. J. Emil Morhardt, Director ([email protected]) Roberts Environmental Center Claremont McKenna College 925 N. Mills Ave. Claremont, CA 91711-5916, USA Direct line: (909) 621-8190 2 0 1 2 X Entertainment Motor Vehicle & Parts 2 0 1 1 X Household, Apparel, & Personal Products Industrial & Farm Equipment Mail, Freight, & Shipping Medical Products & Equipment Metals Mining, Crude Oil 30 2 0 1 0 X Forest & Paper Products 29 2 0 0 9 X X Energy & Utilities 26 27 2 0 0 8 X Colleges/Universities Computer, Office Equipment, & Services Conglomerates Food & Beverages Electronics & Semiconductors 2 0 0 7 X Aerospace & Defense Airlines 12 13 14 15 16 17 18 19 20 21 22 23 2 0 0 6 X X X X X X X X X * Multiple-sector category was separated in later years. Departmental Secretaries: (909) 621-8298 The goal of corporate report analysis conducted by the Roberts Environmental Center is to acquaint students with environmental and social issues facing the world’s industries, and the ways in which industry approaches and resolves these issues. The data presented in this report were collected by student research assistants and a research fellow at the Roberts Environmental Center. Copyright 2012 © by J. Emil Morhardt. All rights reserved. www.roberts.cmc.edu 2 Drugs and Biotechnology Sectors Sustainability Reporting of Worlds' Largest Drugs & Biotechnology Companies Corporate Environmental and Sustainability Reporting Company Rankings Overall Grade 53.74 The Merc k Group 52.51 Amgen A+ The Merck Group (Germany) A+ Amgen (USA) A+ Abbott Laboratories (USA) A Roche Group (Switzerland) Abbott Laboratories 51.55 A Johnson & Johnson (USA) Roc he Group 50.87 A Allergan (USA) A- Novartis (Switzerland) A- GlaxoSmithKline (U.K.) A- Daiichi Sankyo (Japan) 46.58 A- Bristol-Myers Squibb (USA) 46.22 B+ Eli Lilly (USA) B+ Biogen Idec Inc. (USA) 48.81 Johnson & Johnson 47.57 Allergan Novartis GlaxoSmithKline Daiic hi Sankyo 43.36 B+ Sanofi-Aventis (France) Bristol- Myers Squibb 43.20 B+ Astellas Pharma (Japan) B+ Novo Nordisk (Denmark) B+ Pfizer (USA) B Takeda Pharmaceutical (Japan) 39.58 B Merck & Co (USA) 39.46 B- McKesson (USA) B- AstraZeneca (U.K.) B- EISAI (Japan) C+ Genzyme (USA) C+ UCB (Belgium) C Teva Pharmaceutical Inds (Israel) D+ Cardinal Health (USA) 42.04 Eli Lilly 41.41 Biogen Idec Inc . Sanofi- Aventis Astellas Pharma 39.10 Novo Nordisk 38.07 Pfizer 36.55 Takeda Pharmac eutic al 33.73 Merc k & Co Mc Kesson 30.47 D+ Suzuken (Japan) AstraZenec a 30.07 D AmerisourceBergen (USA) D- Mylan Laboratories (USA) D- Gilead Sciences (USA) F Toho Holdings (Japan) 29.55 EISAI 28.12 Genzyme 26.93 UCB 23.95 Teva Pharmac eutic al Inds 15.12 Cardinal Health 11.85 Suzuken 7.88 Amerisourc eBergen Mylan Laboratories 5.77 Gilead Sc ienc es 5.41 0.48 Toho Holdings 0 25 50 75 100 This report is an analysis of the voluntary environmental and social reporting of companies on the 2010 Forbes Pharmaceuticals sector lists. Data were collected from corporate websites during the initial analysis period (dates shown below). A draft sector report was then made available online and letters were sent to all companies inviting them to review the analysis, to identify anything missed by our analysts, and to post additional material on their websites if they wished to improve their scores. Analysis Period: 4/6/2011 through 5/31/2011 Draft sector report available for review: 8/1/2012 through 8/31/2012 www.roberts.cmc.edu 3 Drugs and Biotechnology Sectors The Pacific Sustainability Index (PSI) Overview the PSI Scoring System The Pacific Sustainability Index (PSI) uses two systematic questionnaires to analyze the quality of the sustainability reporting—a base questionnaire for reports across sectors and a sector-specific questionnaire for companies within the same sector. The selection of questions is based on, and periodically adjusted to, the most frequently-mentioned topics in over 1,900 corporate sustainability reports analyzed from 2002 through 2009 at the Roberts Environmental Center. The Roberts Environmental Center The Roberts Environmental Center is an environmental research institute at Claremont McKenna College (CMC). Its mission is to provide students of all the Claremont Colleges with a comprehensive and realistic understanding of today’s environmental issues and the ways in which they are being and can be resolved-beyond the confines of traditional academic disciplines and curriculum--and to identify, publicize, and encourage policies and practices that achieve economic and social goals in the most environmentally benign and protective manner. The Center is partially funded by an endowment from George R. Roberts (Founding Partner of Kohlberg Kravis Roberts & Co. and CMC alumnus), other grants and gifts, and is staffed by faculty and students from the Claremont Colleges. Methodology Student analysts download relevant English language web pages from the main corporate website for analysis. Our scoring excludes data independently stored outside the main corporate website or available only in hard copy. When a corporate subsidiary has its own sustainability reporting, partial credit is given to the parent company when a direct link is provided in the main corporate website. We archive these web pages as PDF files for future reference. Our analysts use a keyword search function to search reporting of specific topics, they fill out a PSI scoring sheet (http://www.roberts.cmc.edu/PSI/scoringsheet.asp), and track the coverage and depths of different sustainability issues mentioned in all online materials. Scores and Ranks When they are finished scoring, the analysts enter their scoring results into the PSI database. The PSI database calculates scores and publishes them on the Center’s website. This sector report provides an indepth analysis on sustainability reporting of the largest companies of the sector, as listed in the latest 2010 Forbes lists. Prior to publishing our sector report, we notify companies analyzed and encourage them to provide feedback and additional new online materials, which often improve their scores. What do the scores mean? We normalize all the scores to the potential maximum score. Scores of subsets of the overall score are also normalized to their potential maxima. The letter grades (A+, A, A-, B+, etc.), however, are normalized to the highest scoring company analyzed in the report. Grades of individual companies in the report might be different from grades posted online on the Roberts Environmental Center's website, since the normalization of scores of an individual company online is not limited to the companies analyzed in the sector report, but also includes other companies of the same sector irrespective of the year of analysis. Companies with scores in the highest 4% get an A+ and any in the bottom 4% get an F. We assign these by dividing the maximum PSI score obtained in the sector into 12 equal parts then rounding fractional score up or down. This means that A+ and F are under-represented compared to the other grades. The same technique applies to the separate categories of environmental and social scores. Thus, we grade on the curve. We assume that the highest score obtained in the sector and any scores near it represent the state-of-the-art for that sector and deserve an A+. www.roberts.cmc.edu 4 Drugs and Biotechnology Sectors PSI Scoring in a Nutshell Our analysis of sustainability reporting has a set of basic topics applied to all organizations as well as a series of sector-specific topics. The topics are divided into environmental and social categories—the latter including human rights—and into three types of information: 1) intent, 2) reporting, and 3) performance. 1. Intent The “Intent” topics are each worth two points; one point for a discussion of intentions, vision, or plans, and one point for evidence of specific actions taken to implement them. 2. Reporting The “Reporting” topics are each worth five points and are either quantitative (for which we expect numerical data) or qualitative (for which we don’t). For quantitative topics, one point is available for a discussion, one point for putting the information into perspective (i.e. awards, industry standards, competitor performance, etc., or if the raw data are normalized by dividing by revenue, number of employees, number of widgets produced, etc.), one point for the presence of an explicit numerical goal, one point for numerical data from a single year, and one point for similar data from a previous year. For qualitative topics, there are three criteria summed up to five points: 1.67 points for discussion, 1.67 points for initiatives or actions, and 1.67 points for perspective. 3. Performance For each “Reporting” topic, two performance points are available. For quantitative topics, one point is given for improvement from the previous reporting period, and one point for better performance than the sector average (based on the data used for this sector report normalized by revenue). For qualitative topics, we give one point for any indication of improvement from previous reporting periods, and one point for perspective. The 11 “human rights” topics are scored differently, with five “reporting” points; 2.5 points for formally adopting a policy or standard and 2.5 points for a description of monitoring measures. In addition, there are two “performance” points; one point for evidence of actions to reinforce policy and one point for a quantitative indication of compliance. Distribution of Scores by topics www.roberts.cmc.edu 5 Drugs and Biotechnology Sectors Drugs & Biotechnology Environmental Intent Topics Percent of possible points for all companies combined. Two possible points for each topic: Accountability 69.17 70 60.83 4 19 60.83 * Report contact person * Environmental management structure Management 60 16 20 21 23 52.50 50 * Environmental education * Environmental management system * Environmental accounting * Stakeholder consultation Policy 40 9 10 11 12 13 194 30 20 Vision 5 6 * Environmental visionary statement * Environmental impediments and challenges Vision Policy Management Accountability 10 0 * Environmental policy statement * Climate change/global warming * Habitat/ecosystem conservation * Biodiversity * Green purchasing * Green Chemistry Notes: * These numbers correspond to the numbers in the PSI questionnaire. Items with numbers higher than 99 are sectorspecific questions. Appendix 1 has the complete questionnaire. www.roberts.cmc.edu 6 Drugs and Biotechnology Sectors Drugs & Biotechnology Environmental Reporting Topics Seven possible points for each topic: Emissions to Air Percent of possible points for all companies combined. 83 114 121 * Carbon monoxide (CO) * Ozone depleting substances from refrigerant * Nitrogen oxides (NOx) 123 127 * Particulate matter (dust) * Sulfur oxides (SOx) 118 119 70.00 70 60 * Greenhouse gases (or CO2 equivalents), total * Volatile organic compounds (VOCs) Emissions to Water 51.67 129 130 50 131 * Suspended solids, total (TSS) * Chemical Oxygen Demand (COD) * Biochemical Oxygen Demand (BOD) Energy 40 35.52 33.87 26 27 30.00 * Energy used (total) * Renewable energy used 27.78 30 Management 39 * Notices of violation (environmental) * Environmental expenses and investments 40 * Fines (environmental) 38 20 16.00 Materials Usage 11.67 10 145 148 * Hazardous materials usage * Materials used: Non-returnable packaging Recycling 30 32 Water Waste Recycling Materials Usage Management Energy Emissions to Water Emissions to Air 0 * Waste recycled: solid waste * Waste (office) recycled Waste 34 35 37 109 110 * Waste (solid) disposed of * Waste (hazardous) produced * Waste (hazardous) released to the environment * Waste: Packaging materials * Waste water released to natural water bodies Water 29 * Water used Notes: * These numbers correspond to the numbers in the PSI questionnaire. Items with numbers higher than 99 are sectorspecific questions. Appendix 1 has the complete questionnaire. www.roberts.cmc.edu 7 Drugs and Biotechnology Sectors Drugs & Biotechnology Social Intent Topics Two possible points for each topic: Percent of possible points for all companies combined. Accountability 51 90 80.56 54 80 * structure Third-party validation Management 70 17 65.00 18 52 60 53 49.33 50 * Health and safety, or social organizational 82 46.67 43.33 * Workforce profile: ethnicities/race * Workforce profile: gender * Workforce profile: age * Emergency preparedness program * Employee training for career development Policy 40 45 47 30 49 * Social policy statement * Code of conduct or business ethics * Supplier screening based on social or environmental performance/ supplier management 20 Social Demographic 80 10 * Employment for individuals with disabilities 42 Vision Social Demographic Policy Management Accountability Vision 0 43 * Social visionary statement * Social impediments and challenges Notes: * These numbers correspond to the numbers in the PSI questionnaire. Items with numbers higher than 99 are sectorspecific questions. Appendix 1 has the complete questionnaire. www.roberts.cmc.edu 8 Drugs and Biotechnology Sectors Drugs & Biotechnology Social Reporting Topics Seven possible points for each topic: Accountability Percent of possible points for all companies combined. 192 * Disclosure of clinical trials Human Rights 70 64.67 1 59.33 7 60 55.50 8 52.30 58 59 50 60 * Sexual harassment * Political contributions * Bribery * Anti-corruption practices * Degrading treatment or punishment of employees * Elimination of discrimination in respect to employment and occupation 40 61 * Free association and collective bargaining of employees 30.48 62 30 63 * Fair compensation of employees * Elimination of all forms of forced and compulsory labor 64 20 65 Management 10 2 * Women in management Quantitative Social Qualitative Social Management Human Rights Qualitative Social Accountability 0 * Reasonable working hours * Effective abolition of child labor 66 67 68 70 72 153 154 193 * Community development * Employee satisfaction surveys * Community education * Occupational health and safety protection * Employee volunteerism * Animal testing standards * Access to health care in low income communities * Efforts on neglected diseases Quantitative Social 3 74 75 76 77 * Employee turnover rate * Recordable incident/accident rate * Lost workday case rate * Health and safety citations * Health and safety fines Notes: * These numbers correspond to the numbers in the PSI questionnaire. Items with numbers higher than 99 are sectorspecific questions. Appendix 1 has the complete questionnaire. www.roberts.cmc.edu 9 Drugs and Biotechnology Sectors Drugs & Biotechnology Environmental Intent Elements of the PSI Scores Environmental visionary statement 93.3% 86.7% 90.0% 81.7% Stakeholder consultation 86.7% Report contact person 66.7% Environmental policy statement 83.3% 81.7% Environmental management structure 80.0% 55.0% Climate change/global warming 73.3% 71.7% Environmental management system 73.3% 65.0% 66.7% 61.7% Environmental education Environmental impediments and challenges 56.7% 51.7% Habitat/ecosystem conservation 56.7% 45.0% 50.0% 43.3% Biodiversity 46.7% 35.0% Environmental accounting 43.3% 36.7% Green Chemistry 40.0% 36.7% Green purchasing 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% = Percentage of companies addressing the topics = Percentage of the total possible number of points awarded to all companies combined for each topic, indicating the depth of reporting coverage measured by PSI criteria for each topic. If both percentages are the same it means that each of those reporting companies reporting on a topic got all the possible points. www.roberts.cmc.edu 10 Drugs and Biotechnology Sectors Drugs & Biotechnology Environmental Reporting Elements of the PSI Scores Energy used (total) Greenhouse gases (or CO2 equivalents), total 76.7% 50.0% Waste (solid) disposed of 73.3% 4 1. 4 % Renewable energy used 66.7% 24.8% Waste recycled: solid waste 66.7% 30.0% Waste (hazardous) produced 66.7% 36.2% Nitrogen oxides (NOx) 66.7% 33.8% Sulfur oxides (SOx) 53.3% 25.7% Waste: Packaging materials 50.0% 13 . 3 % Volatile organic compounds (VOCs) 50.0% 25.7% Ozone depleting substances from refrigerant 50.0% 2 1. 0 % Fines (environmental) 50.0% 25.7% Waste water released to natural water bodies 19 . 0 % Notices of violation (environmental) 19 . 5 % Waste (office) recycled 43.3% 40.0% 36.7% 12 . 9 % Environmental expenses and investments 36.7% 14 . 3 % Chemical Oxygen Demand (COD) 20.5% Particulate matter (dust) 9.0% Materials used: Non-returnable packaging 8.6% Hazardous materials usage 8 . 1% 36.7% 33.3% 26.7% 26.7% 11. 0 % 26.7% Suspended solids, total (TSS) 16 . 7 % 7.6% Carbon monoxide (CO) 16 . 7 % 4.8% Biochemical Oxygen Demand (BOD) 76.7% 57.6% Water used Waste (hazardous) released to the environment 83.3% 49.0% 13 . 3 % 6.2% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% = Percentage of companies addressing the topics = Percentage of the total possible number of points awarded to all companies combined for each topic, indicating the depth of reporting coverage measured by PSI criteria for each topic. If both percentages are the same it means that each of those reporting companies reporting on a topic got all the possible points. www.roberts.cmc.edu 11 Drugs and Biotechnology Sectors Drugs & Biotechnology Social Intent Elements of the PSI Scores 96.7% 90.0% Code of conduct or business ethics 93.3% 86.7% Social visionary statement Employee training for career development 83.3% 78.3% Social policy statement 83.3% 78.3% 80.0% 73.3% Supplier screening based on social or environmental performance/ supplier management 76.7% Health and safety, or social organizational structure 53.3% 66.7% 55.0% Workforce profile: gender 60.0% 51.7% Workforce profile: ethnicities/race 53.3% 43.3% Employment for individuals with disabilities 50.0% 40.0% Third-party validation Emergency preparedness program 46.7% 40.0% Social impediments and challenges 46.7% 43.3% 33.3% 21.7% Workforce profile: age 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% = Percentage of companies addressing the topics = Percentage of the total possible number of points awarded to all companies combined for each topic, indicating the depth of reporting coverage measured by PSI criteria for each topic. If both percentages are the same it means that each of those reporting companies reporting on a topic got all the possible points. www.roberts.cmc.edu 12 Drugs and Biotechnology Sectors Drugs & Biotechnology Social Reporting Elements of the PSI Scores Elimination of discrimination in respect to employment and occupation 93.3% 61.0% Community development 93.3% 48.6% Anti-corruption practices 90.0% 57.1% Occupational health and safety protection 49.0% Bribery 49.0% Social community investment 86.7% 86.7% 86.7% 28.6% Access to health care in low income communities 83.3% 45.7% Community education 76.7% 38.1% Political contributions 43.3% Sexual harassment 43.3% Employee volunteerism 45.2% Disclosure of clinical trials 76.7% 76.7% 76.7% 76.7% 42.4% Women in management 73.3% 46.2% Recordable incident/accident rate 70.0% 43.8% Animal testing standards 70.0% 41.0% Lost workday case rate 37.6% Fair compensation of employees 35.7% Free association and collective bargaining of employees 53.3% 14.3% Effective abolition of child labor 29.0% Degrading treatment or punishment of employees 28.1% Reasonable working hours 20.0% Employee satisfaction surveys 21.4% Elimination of all forms of forced and compulsory labor 21.0% Health and safety fines 23.3% 9.0% Health and safety citations 23.3% 7.1% Employee turnover rate 23.3% 11.9% 0% 53.3% 50.0% 21.9% Efforts on neglected diseases 66.7% 56.7% 29.5% Training, hours per number of employees 66.7% 50.0% 46.7% 46.7% 43.3% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% = Percentage of companies addressing the topics = Percentage of the total possible number of points awarded to all companies combined for each topic, indicating the depth of reporting coverage measured by PSI criteria for each topic. If both percentages are the same it means that each of those reporting companies reporting on a topic got all the possible points. www.roberts.cmc.edu 13 Drugs and Biotechnology Sectors EI Score Rankings Environmental Intent Scores A+ Bristol-Myers Squibb A Allergan 85.7 A Pfizer 85.7 A A Biogen Idec Inc. The Merck Group 82.1 A Amgen T he Merck Group 82.1 A A- GlaxoSmithKline Astellas Pharma Amgen 82.1 A- Takeda Pharmaceutical GlaxoSmithKline 82.1 A- Novartis Roche Group Johnson & Johnson 92.9 Bristol-Myers Squibb Allergan Pfizer Biogen Idec Inc. Astellas Pharma 78.6 AA- T akeda Pharmaceutical 78.6 A- Daiichi Sankyo Novartis 78.6 Roche Group AB+ Eli Lilly EISAI 78.6 B+ Abbott Laboratories Johnson & Johnson 78.6 B Novo Nordisk AstraZeneca Sanofi-Aventis Daiichi Sankyo 75.0 B B- Eli Lilly 75.0 B- McKesson C+ C+ Suzuken UCB EISAI 67.9 Abbott Laboratories 67.9 Novo Nordisk AstraZeneca C+ Teva Pharmaceutical Inds 60.7 C+ Merck & Co 60.7 C D- Genzyme Cardinal Health D- Mylan Laboratories F F Gilead Sciences Toho Holdings F AmerisourceBergen 57.1 Sanofi-Aventis McKesson 53.6 50.0 Suzuken 46.4 UCB T eva Pharmaceutical Inds 42.9 Merck & Co 42.9 39.3 Genzyme Cardinal Health 10.7 Mylan Laboratories 7.1 Gilead Sciences 3.6 T oho Holdings 3.6 AmerisourceBergen 3.6 0 25 50 75 100 Environmental intent scores include topics about the firm’s products, environmental organization, vision and commitment, stakeholders, environmental policy and certifications, environmental aspects and impacts, choice of environmental performance indicators and those used by the industry, environmental initiatives and mitigations, and environmental goals and targets. www.roberts.cmc.edu 14 Drugs and Biotechnology Sectors ER Score Rankings Environmental Reporting Scores 55.20 Abbott Laboratories 50.40 Amgen 49.60 Allergan A+ Abbott Laboratories A Amgen A A- Allergan Daiichi Sankyo Daiichi Sankyo 45.60 A- The Merck Group T he Merck Group 44.80 GlaxoSmithKline 43.20 B+ B+ GlaxoSmithKline Astellas Pharma B+ Roche Group B Pfizer Sanofi-Aventis Novartis 40.00 Astellas Pharma 40.00 Roche Group Pfizer 37.60 B B Sanofi-Aventis 36.00 B Biogen Idec Inc. Novartis 36.00 Biogen Idec Inc. 35.20 B B- Johnson & Johnson Takeda Pharmaceutical Johnson & Johnson 35.20 B- Genzyme B- Eli Lilly Bristol-Myers Squibb Novo Nordisk T akeda Pharmaceutical 33.60 Genzyme 32.00 BB- Eli Lilly 32.00 C+ Merck & Co Bristol-Myers Squibb 31.20 C+ C UCB McKesson C- EISAI D+ AstraZeneca DD- Teva Pharmaceutical Inds Suzuken 16.80 F Mylan Laboratories 15.20 F F Gilead Sciences Toho Holdings F AmerisourceBergen F Cardinal Health 30.40 Novo Nordisk Merck & Co 26.40 UCB 25.60 21.60 McKesson EISAI AstraZeneca T eva Pharmaceutical Inds 6.40 Suzuken 2.40 Mylan Laboratories 0.00 Gilead Sciences 0.00 T oho Holdings 0.00 AmerisourceBergen 0.00 Cardinal Health 0.00 0 25 50 75 100 Environmental reporting scores are based on the degree to which the company discusses its emissions, energy sources and consumption, environmental incidents and violations, materials use, mitigations and remediation, waste produced, and water used. They also include use of life cycle analysis, environmental performance and stewardship of products, and environmental performance of suppliers and contractors. www.roberts.cmc.edu 15 Drugs and Biotechnology Sectors Environmental Performance Scores EP Score Rankings A+ Allergan Allergan 30.00 A+ Abbott Laboratories Abbott Laboratories 30.00 A- The Merck Group Novo Nordisk Amgen T he Merck Group 26.00 Novo Nordisk 24.00 AA- Amgen 24.00 A- GlaxoSmithKline GlaxoSmithKline 24.00 B+ B- Daiichi Sankyo Astellas Pharma 18.00 B- Takeda Pharmaceutical 18.00 B- Bristol-Myers Squibb 18.00 BC+ Eli Lilly Johnson & Johnson C+ Biogen Idec Inc. C+ C McKesson Sanofi-Aventis C Novartis D+ AstraZeneca D+ D+ Roche Group Pfizer D UCB D D Genzyme EISAI Genzyme 4.00 D- Teva Pharmaceutical Inds EISAI 4.00 D- Merck & Co Merck & Co 2.00 F F Mylan Laboratories Gilead Sciences Mylan Laboratories 0.00 F Toho Holdings Gilead Sciences 0.00 T oho Holdings 0.00 F F Suzuken AmerisourceBergen Suzuken 0.00 F Cardinal Health Daiichi Sankyo 22.00 Astellas Pharma T akeda Pharmaceutical Bristol-Myers Squibb Eli Lilly 18.00 Johnson & Johnson 16.00 Biogen Idec Inc. 14.00 McKesson 14.00 Sanofi-Aventis 12.00 Novartis 12.00 AstraZeneca 8.00 Roche Group 8.00 Pfizer 8.00 UCB 6.00 T eva Pharmaceutical Inds 2.00 AmerisourceBergen 0.00 Cardinal Health 0.00 0 25 50 75 100 Environmental performance scores are based on whether or not the firm has improved its performance on each of the topics discussed under the heading of environmental reporting, and on whether the quality of the performance is better than that of the firm’s peers. Scoring for each topic is one point if performance is better than in previous reports, two points if better than industry peers, three points if both. www.roberts.cmc.edu 16 Drugs and Biotechnology Sectors SI Score Rankings Social Intent Scores T he Merck Group 92.31 Novartis 88.46 A+ A The Merck Group Novartis A Amgen AstraZeneca Sanofi-Aventis Amgen 84.62 AstraZeneca 84.62 A A Sanofi-Aventis 84.62 A- Eli Lilly 80.77 A- GlaxoSmithKline 80.77 AA- Roche Group Daiichi Sankyo B+ Biogen Idec Inc. B+ B Allergan Astellas Pharma B Abbott Laboratories B UCB B B Novo Nordisk Takeda Pharmaceutical B McKesson BB- Bristol-Myers Squibb Johnson & Johnson C+ EISAI C+ Teva Pharmaceutical Inds Merck & Co Pfizer Eli Lilly GlaxoSmithKline Roche Group 80.77 Daiichi Sankyo 76.92 Biogen Idec Inc. 73.08 Allergan 73.08 Astellas Pharma 65.38 Abbott Laboratories 65.38 UCB 61.54 Novo Nordisk 61.54 T akeda Pharmaceutical 61.54 McKesson 61.54 Bristol-Myers Squibb 57.69 Johnson & Johnson 53.85 EISAI 50.00 T eva Pharmaceutical Inds 50.00 C+ C+ 50.00 C+ Cardinal Health C+ C- Suzuken Genzyme D Mylan Laboratories D Gilead Sciences DF AmerisourceBergen Toho Holdings Merck & Co Pfizer 46.15 Cardinal Health 46.15 Suzuken 42.31 Genzyme 34.62 Mylan Laboratories 11.54 Gilead Sciences 11.54 AmerisourceBergen 7.69 T oho Holdings 3.85 0 25 50 75 100 Social intent scores include topics about the firm’s financials, employees, safety reporting, social management organization, social vision and commitment, stakeholders, social policy and certifications, social aspects and impacts, choice of social performance indicators and those used by the industry, social initiatives and mitigations, and social goals and targets. www.roberts.cmc.edu 17 Drugs and Biotechnology Sectors SR Score Rankings Social Reporting Scores Johnson & Johnson 68.21 A+ Johnson & Johnson 62.26 A+ A Roche Group The Merck Group 61.55 A Novartis AA- Bristol-Myers Squibb Amgen Roche Group 65.83 T he Merck Group Novartis Bristol-Myers Squibb 58.57 Amgen 56.43 Abbott Laboratories 52.14 B+ Abbott Laboratories Allergan 50.95 B+ Allergan Eli Lilly 50.83 B+ B+ Eli Lilly GlaxoSmithKline B+ Merck & Co B+ B Novo Nordisk Biogen Idec Inc. B Sanofi-Aventis B Pfizer B B Daiichi Sankyo EISAI B- AstraZeneca Teva Pharmaceutical Inds Astellas Pharma GlaxoSmithKline 50.48 Merck & Co 50.24 Novo Nordisk 49.88 Biogen Idec Inc. 47.50 Sanofi-Aventis 47.02 Pfizer 45.36 Daiichi Sankyo 44.05 EISAI 42.74 AstraZeneca 42.14 T eva Pharmaceutical Inds 40.24 BB- Astellas Pharma 38.81 B- Takeda Pharmaceutical T akeda Pharmaceutical 38.69 B- McKesson McKesson 37.62 Genzyme 37.02 BC Genzyme UCB UCB 30.59 C Cardinal Health Cardinal Health 28.81 D+ D AmerisourceBergen Mylan Laboratories AmerisourceBergen 18.57 Mylan Laboratories 13.69 D Gilead Sciences Gilead Sciences 12.62 D Suzuken Suzuken 11.90 F Toho Holdings T oho Holdings 0.00 0 25 50 75 100 Social reporting scores are based on the degree to which the company discusses various aspects of its dealings with its employees and contractors. They also include social costs and investments. www.roberts.cmc.edu 18 Drugs and Biotechnology Sectors SP Score Rankings Social Performance Scores A+ Roche Group A+ Abbott Laboratories 39.29 A A- The Merck Group Amgen Amgen 37.50 A- Johnson & Johnson Johnson & Johnson 37.50 25.00 BB- Biogen Idec Inc. Eli Lilly Roche Group 42.86 Abbott Laboratories 41.07 T he Merck Group Biogen Idec Inc. Eli Lilly 25.00 B- Astellas Pharma Astellas Pharma 23.21 B- Novartis Novartis 23.21 GlaxoSmithKline 23.21 BC+ GlaxoSmithKline Merck & Co Merck & Co 21.43 C+ Daiichi Sankyo Novo Nordisk Sanofi-Aventis Daiichi Sankyo 19.64 Novo Nordisk 19.64 C+ C+ Sanofi-Aventis 19.64 C Teva Pharmaceutical Inds 17.86 C Takeda Pharmaceutical T akeda Pharmaceutical 17.86 Bristol-Myers Squibb 17.86 C C Bristol-Myers Squibb McKesson McKesson 17.86 C EISAI C C- Pfizer Allergan C- Cardinal Health D+ UCB D+ D+ Suzuken AstraZeneca Suzuken 8.93 D Genzyme AstraZeneca 8.93 Genzyme 7.14 D F AmerisourceBergen Gilead Sciences AmerisourceBergen 7.14 F Mylan Laboratories Gilead Sciences 1.79 F Toho Holdings T eva Pharmaceutical Inds EISAI 16.07 Pfizer 16.07 Allergan 14.29 Cardinal Health 14.29 UCB 10.71 Mylan Laboratories 0.00 T oho Holdings 0.00 0 25 50 75 100 Social performance scores are based on improvement, performance better than the sector average, or statements of compliance with established social standards. www.roberts.cmc.edu 19 Drugs and Biotechnology Sectors Drugs & Biotechnology Human Rights Reporting Elements of the PSI Scores Percent of companies reporting* Human Rights Topics adoption reinforcement monitoring 90.0% 63.3% 40.0% 13.3% 86.7% 56.7% 26.7% 3.3% 50.0% 13.3% 6.7% 6.7% 53.3% 30.0% 10.0% 10.0% 43.3% 23.3% 3.3% 3.3% 93.3% 80.0% 36.7% 13.3% 66.7% 36.7% 16.7% 10.0% 56.7% 33.3% 10.0% 10.0% 73.3% 43.3% 26.7% 13.3% 46.7% 10.0% 6.7% 10.0% 76.7% 53.3% 20.0% 6.7% Anti-corruption practices Bribery Degrading treatment or punishment of employees Effective abolition of child labor Elimination of all forms of forced and compulsory labor Elimination of discrimination in respect to employment and occupation Fair compensation of employees Free association and collective bargaining of employees Political contributions Reasonable working hours Sexual harassment compliance Basis of Scores Adoption We assign one point for adoption of a policy standard or for an explicit discussion of an organization’s stance on each of 11 human rights principles. Reinforcement We assign one point for a description of reinforcement actions to make a policy stronger, such as providing educational programs, training, or other activities to promote awareness. Monitoring We assign one point for a description of monitoring measures including mechanisms to detect violations at an early stage, providing systematic reporting, or establishment of committee structure to oversee risky activities. Compliance We assign one point for a quantitative indication of compliance, such as a description of incidences of failure of compliance, or a statement that there were no such incidences. www.roberts.cmc.edu 20 Drugs and Biotechnology Sectors Drugs & Biotechnology Average Overall, Environmental, and Social PSI Scores Performance by Country This graph illustrates the average PSI in three categories--overall, environmental, and social-breakdown by countries. Since our sample size follows the world's largest companies from the Fortune list, several countries have only one company score to represent the whole country's sustainability reporting in the sector. USA U.K. Switzerland Japan Overall Israel Germany France Denmark Country Belgium USA U.K. Switzerland Japan Environmental Israel N Belgium 1 Denmark 1 France 1 Germany Israel 1 1 Japan 6 Switzerland U.K. 2 2 USA 15 Germany France Denmark Belgium USA U.K. Switzerland Japan Social Israel Germany France Denmark Belgium 0 www.roberts.cmc.edu 10 20 30 40 50 21 60 70 Drugs and Biotechnology Sectors Visual Cluster Analysis Visual cluster analysis multivariate data of the sort produced by the PSI are difficult to summarize. Here we have created radar diagrams of the performance of each company analyzed in the sector by its environmental and social intent, reporting, and performance sorted by company ranking. Maximum scores will match the outer sides of the hexagon, which total up to 100 percent. EI = Environmental Intent, ER = Environmental Reporting, EP = Environmental Performance SI = Social Intent, SR = Social Reporting, SP = Social Performance ER EI ER 100 100 75 75 75 50 EP EI EI EP 50 EI 50 EP EI 50 25 25 25 0 0 0 0 SP SI SP SI SR SP SI SR Amgen SI SR Abbott Laboratories ER SP SR Roche Group ER Johnson & Johnson ER ER 100 100 100 100 75 75 75 75 75 50 EP EI 50 EP EI EP 50 EI 50 EP EI 50 25 25 25 25 25 0 0 0 0 0 SP SI SR SP SI SR Allergan SI SR Novartis ER SP ER SP SI SR GlaxoSmithKline SP Bristol-Myers Squibb ER ER 100 100 100 100 100 75 75 75 75 75 50 EP EI 50 EP EI EP 50 EI 50 EP EI 50 25 25 25 25 25 0 0 0 0 0 SI SP SI SR SP SI SR Eli Lilly SI SR Biogen Idec Inc. ER SP ER SP SI SR Sanofi-Aventis SP Novo Nordisk ER ER 100 100 100 100 100 75 75 75 75 75 50 EP EI 50 EP EI EP 50 EI 50 EP EI 50 25 25 25 25 25 0 0 0 0 0 SI SP SI SR SP SI SR Pfizer SI SR Takeda Pharmaceutical ER SP ER SP SI SR Merck & Co SP AstraZeneca ER ER 100 100 100 100 100 75 75 75 75 75 50 EP EI 50 EP EI EP 50 EI 50 EP EI 50 25 25 25 25 25 0 0 0 0 0 SI SP SI SR SP SI SR EISAI SI SR Genzyme ER SP ER SP SI SR UCB SP Cardinal Health ER ER 100 100 100 100 100 75 75 75 75 75 50 EP EI 50 EP EI EP 50 EI 50 EP EI 50 25 25 25 25 25 0 0 0 0 0 SI SP SR Suzuken www.roberts.cmc.edu SI SP SR AmerisourceBergen SI SP SR Mylan Laboratories 22 SI EP SR Teva Pharmaceutical Inds ER EP SR McKesson ER EP SR Astellas Pharma ER EP SR Daiichi Sankyo ER EP SP 100 SI EI EP 25 0 ER EI 50 25 SR EI ER 100 75 The Merck Group EI ER 100 75 SI EI ER 100 SP SR Gilead Sciences SI EP SP SR Toho Holdings Drugs and Biotechnology Sectors Relationships Between Overall PSI Score and Companies' Revenue and Profit Company Name Overall Score Revenue ($million) Revenue Log10 $M Profits Profits ($million) Log $M 10 Assets Assets ($million) Log $M 10 Market Value ($million) Market Value Log10 $M Abbott Laboratories Allergan 51.55 47.57 30760 1.49 5750 0.76 52420 1.72 84290 1.93 4500 0.65 620 -0.21 7540 0.88 18330 1.26 AmerisourceBergen 7.88 73760 1.87 540 -0.27 13560 1.13 7930 0.90 52.51 39.46 14640 1.17 4610 0.66 39630 1.60 55720 1.75 9920 1.00 1760 0.25 13180 1.12 17810 1.25 AstraZeneca Biogen Idec Inc. 30.07 41.41 32800 1.52 7520 0.88 53630 1.73 63560 1.80 4380 0.64 970 -0.01 8550 0.93 15310 1.18 Bristol-Myers Squibb 43.20 18810 1.27 10610 1.03 31010 1.49 41810 1.62 Cardinal Health Daiichi Sankyo 15.12 43.36 101660 2.01 780 -0.11 20820 1.32 12680 1.10 8650 0.94 -2210 14200 1.15 14320 1.16 EISAI 29.55 8030 0.90 490 -0.31 10910 1.04 11580 1.06 Eli Lilly Genzyme 42.04 28.12 21840 1.34 4330 0.64 27460 1.44 39580 1.60 4520 0.66 420 -0.38 10060 1.00 15630 1.19 5.41 7010 0.85 2640 0.42 9700 0.99 42760 1.63 GlaxoSmithKline Johnson & Johnson 46.22 48.81 45830 1.66 8940 0.95 65380 1.82 95360 1.98 61900 1.79 12270 1.09 94680 1.98 174900 2.24 McKesson Merck & Co 30.47 33.73 108280 2.03 1200 0.08 27540 1.44 16270 1.21 27430 1.44 12900 1.11 112090 2.05 116110 2.06 5.77 5090 0.71 230 -0.64 10800 1.03 6560 0.82 46.58 39.10 44270 1.65 8400 0.92 90890 1.96 126220 2.10 9830 0.99 2070 0.32 10270 1.01 44650 1.65 Pfizer 38.07 50010 1.70 8640 0.94 212950 2.33 143230 2.16 Roche Group Sanofi-Aventis 50.87 39.58 47350 1.68 7510 0.88 69640 1.84 146190 2.16 41990 1.62 7540 0.88 114850 2.06 98070 1.99 Suzuken 11.85 16860 1.23 70 -1.15 8380 0.92 3110 0.49 Takeda Pharmaceuti Teva Pharmaceutica 36.55 23.95 15800 1.20 2410 0.38 27830 1.44 35470 1.55 14360 1.16 2070 0.32 33210 1.52 56190 1.75 The Merck Group 53.74 11100 1.05 520 -0.28 23200 1.37 17430 1.24 Toho Holdings UCB 0.48 26.93 8620 0.94 -30 4030 0.61 990 0.00 4350 0.64 720 -0.14 13290 1.12 7910 0.90 Amgen Astellas Pharma Gilead Sciences Mylan Laboratories Novartis Novo Nordisk Source: www.roberts.cmc.edu 23 2010 Forbes List Drugs and Biotechnology Sectors 60 5 3 .7 4 5 2 .5 1 5 1.5 5 50 5 0 .8 7 4 8 .8 1 4 7 .5 7 4466.5.282 Overall PSI Scores 4 3 .3 6 4 3 .2 0 4 2 .0 4 4 1.4 1 40 3 9 .5 8 3 8 .0 7 .4 6 33 99 .10 3 6 .5 5 3 3 .7 3 30 2 8 .12 2 6 .9 3 3 0 .4 7 3 0 .0 7 2 9 .5 5 2 3 .9 5 20 15 .12 11.8 5 10 7 .8 8 5 .7 7 5 .4 1 2 R = 0.016 0 .4 8 0 0 0.5 1 1. 5 2 2.5 Revenue Log10 $M 60 53.74 52.51 5 1. 5 55 0 . 8 7 50 48.81 4 46 6. 5. 28 2 47.57 Overall PSI Scores 43.20 42.04 4 1. 4 1 40 39.58 38.07 3 9 .3496. 10 36.55 33.73 30.47 2 9 . 5 5 30 2 8 . 12 26.93 2 30.07 R = 0.3119 23.95 20 15 . 12 11. 8 5 10 7.88 5.77 5.41 0 - 1.5 -1 - 0.5 0 0.5 1 1.5 Profits Log10 $M www.roberts.cmc.edu 24 Drugs and Biotechnology Sectors 60 53.74 52.51 50 48.81 46.22 46.58 Overall PSI Scores 47.57 43.36 4 1. 4 1 3 9 . 103 9 . 4 6 40 5 1. 5 5 5 0 . 8 7 43.20 42.04 39.58 36.55 2 30 33.73 R = 0.267 30.47 29.55 2 8 . 12 26.93 38.07 30.07 23.95 20 15 . 12 11. 8 5 10 7.88 5 . 45 1. 7 7 0.48 0 0 0.5 1 1.5 2 2.5 Asset Log10 $M 60 53.74 52.51 50 47.57 43.36 4 1. 4 1 39.46 Overall PSI Scores 40 5 1. 5 5 50.87 48.81 4 6 . 2 24 6 . 5 8 43.20 42.04 39.58 3 9 . 10 36.55 38.07 33.73 30 26.93 2 9 . 5 53 0 . 4 7 2 8 . 12 2 3 0 .0.4232 07 R = 23.95 20 15 . 12 11. 8 5 10 7.88 5.77 5.41 0.48 - 5.00E - 01 0 0.00E + 00 5.00E - 01 1.00E + 00 1.50E + 00 2.00E + 00 2.50E + 00 Market Value Log10 $M www.roberts.cmc.edu 25 Drugs and Biotechnology Sectors Number of Explicit numerical goals Reported Abbott Laboratories 13 Amgen 12 Pfizer 12 Johnson & Johnson 12 Novartis 11 GlaxoSmithKline 10 Allergan 9 Astellas Pharma 8 Biogen Idec Inc. 7 Eli Lilly 6 Bristol-Myers Squibb 5 AstraZeneca 5 The Merck Group 4 Daiichi Sankyo 4 Novo Nordisk 4 Roche Group 4 Takeda Pharmaceutical 2 Merck & Co 1 Teva Pharmaceutical Inds 1 EISAI 1 0 5 10 15 20 25 Explicit Goals Most Frequently Reported 1 Greenhouse gases (or CO2 equivalents), total 18 2 Water used 15 3 Recordable incident/accident rate 13 4 Waste (solid) disposed of 10 5 Energy used (total) 9 6 Lost workday case rate 9 7 Ozone depleting substances from refrigerant 7 www.roberts.cmc.edu 26 Drugs and Biotechnology Sectors Number of Topics Showing Performance Improvement over Previous Year Data The Merck Group 22 Abbott Laboratories 19 Allergan 18 GlaxoSmithKline 17 Amgen 17 Johnson & Johnson 14 Novo Nordisk 12 Daiichi Sankyo 11 Takeda Pharmaceutical 11 Eli Lilly 11 McKesson 10 Astellas Pharma 9 Novartis 9 Bristol-Myers Squibb 8 Biogen Idec Inc. 8 Roche Group 8 Sanofi-Aventis 6 Merck & Co 6 AstraZeneca 5 EISAI 5 UCB 4 Pfizer 4 Teva Pharmaceutical Inds 4 Cardinal Health 2 Genzyme 1 Suzuken 1 0 5 10 15 20 25 30 35 40 Topics Most Frequently Reported as Having Improvements over previous year data 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Greenhouse gases (or CO2 equivalents), total Water used Recordable incident/accident rate Energy used (total) Waste (solid) disposed of Lost workday case rate Waste (hazardous) produced Occupational health and safety protection Nitrogen oxides (NOx) Women in management Chemical Oxygen Demand (COD) Sulfur oxides (SOx) Waste recycled: solid waste Fines (environmental) Volatile organic compounds (VOCs) Social community investment www.roberts.cmc.edu 19 14 13 12 11 10 10 10 9 9 9 8 8 8 7 6 27 Drugs and Biotechnology Sectors 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 Notices of violation (environmental) Waste water released to natural water bodies Community development Employee volunteerism Renewable energy used Community education Ozone depleting substances from refrigerant Waste (office) recycled Employee turnover rate Suspended solids, total (TSS) Disclosure of clinical trials Materials used: Non-returnable packaging Biochemical Oxygen Demand (BOD) Health and safety fines Carbon monoxide (CO) Waste: Packaging materials Efforts on neglected diseases Environmental expenses and investments Particulate matter (dust) Animal testing standards Access to health care in low income communities Training, hours per number of employees Waste (hazardous) released to the environment Health and safety citations Hazardous materials usage Employee satisfaction surveys www.roberts.cmc.edu 6 5 5 5 5 4 4 3 3 3 3 3 3 3 3 3 3 2 2 2 2 2 2 1 1 1 28 Drugs and Biotechnology Sectors Number of Topics in which Performance was Better than Sector Average* Amgen 3 Roche Group 3 Novo Nordisk 3 Johnson & Johnson 3 Bristol-Myers Squibb 3 Eli Lilly 2 Takeda Pharmaceutical 2 Genzyme 2 Abbott Laboratories 2 Daiichi Sankyo 2 Biogen Idec Inc. 2 Astellas Pharma 2 GlaxoSmithKline 2 The Merck Group 1 McKesson 1 Novartis 1 AstraZeneca 1 Pfizer 1 Sanofi-Aventis 1 Allergan 1 0 1 2 3 4 *Sector averages are calculated from the materials scored for this report. www.roberts.cmc.edu 29 Drugs and Biotechnology Sectors A+ Abbott Laboratories 2011 Global Citizenship Report, Code of Business Conduct, and 2012 Web Pages Abbott Laboratories Abbott Laboratories publishes a Global Citizenship Report and Code of Conduct annually, in addition to a regularly updated Global Citizenship section of its corporate website. The company is thorough in its publication of quantitative data; however, it could benefit from publishing more analysis of the data, explaining why certain values increased or decreased. The company offers a good discussion of the initiatives it has undertaken to decrease the amount of material it uses in packaging materials. However, the data that is offered is very specific examples of certain drugs that now are shipped with reduced packaging. The data is not in aggregate form, however. Abbott’s Code of Conduct very clearly states the company’s policies for each of the relevant PSI criteria. However, no examples of actions undertaken to reinforce the policy, monitoring for violation, or quantitative indicators of compliance are presented for any of the human rights items. Examples of reinforcement of the Code of Conduct would be beneficial to Abbott because it would demonstrate commitment to being an ethical employer and a responsible corporate citizen. Publication of the name of a contact person in the Global Citizenship department would further demonstrate this commitment. Analyst 1: Elizabeth Duckworth Analyst 2: Erin Franks E=Total Environmental Score, ESA=Environmental Sector Average Score, EI=Environmental Intent, ER=Environmental Reporting, EP=Environmental Performance, S=Total Social Score, SSA=Social Sector Average Score, SI=Social Intent, SR=Social Reporting, SP=Social Performance Comparison with sector averages Distribution of points Source of points E 73 ES A E 50% S S 50% SSA 25 50 23 4 EI 0 58 27 ER EP SI SR 13 Consolidated Edison SP 75 Environmental Intent Score Max Score % General Comment Accountability Question Category 3 4 75 Excellent Management 6 8 75 Excellent Policy 6 12 50 Good Vision 4 4 100 Excellent Environmental Reporting Question Category Score Max Score % General Comment Emissions to Air 25 49 51 Good Emissions to Water 5 21 24 Needs substantial improvement Energy 8 14 57 Good Management 8 21 38 Needs improvement Materials Usage 3 14 21 Needs substantial improvement Good Recycling 8 14 57 Waste 21 35 60 Good Water 6 7 86 Excellent Social Intent Question Category Score Max Score % General Comment Accountability 1 4 25 Needs improvement Management 6 10 60 Good Policy 6 6 100 Social Demographic 0 2 0 Vision 4 4 100 Excellent Needs substantial improvement Excellent Social Reporting Question Category Score Max Score % General Comment Accountability 2 7 29 Needs improvement Human Rights 40 77 52 Good Management 6 7 86 Excellent Qualitative Social 29 56 52 Good Quantitative Social 17 49 35 Needs improvement www.roberts.cmc.edu 30 Drugs and Biotechnology Sectors A Allergan 2011 Sustainability Performance Report, 2010 Environmental Health and Safety Sustainability Performance Reports, 2010 Code of Conduct, and 2011 Web Pages Allergan Allergan’s consideration of environmental and social sustainability is demonstrated in its 2011 Allergan Sustainability Performance Report, Code of Conduct, and 2012 web pages. The company provides detailed environmental and social visionary statements, as well as various policies that are enforced to help accomplish these visions. Allergan recognizes that climate change and global warming are occurring and has taken action to decrease its impact, such as joining the USEPA Climate Wise Program and the Carbon Disclosure Project, and screening suppliers for their environmental impacts prior to working with them. Similarly, Allergan supports the preservation of ecosystems and biodiversity. Community involvement is also evident through the company’s formation of the Allegran Foundation and its contributions to education, environmental groups, and other causes. Allergan could improve its report by including information about the composition of its workforce and details about training, employee turnover rate, and employee satisfaction surveys. While Allegran has an extensive Code of Conduct, it should also incorporate the company’s positions on bribery and treatment of employees. Allegran should also provide the amounts of waste, water, energy, packaging materials, and other aspects that it produces, uses, or emits. It is clear from its reports that Allegran actively considers its environmental and social sustainability, but the company could provide a bit more information to make its reporting more effective. Analyst 1: Stephanie Oehler Analyst 2: Carolyn Campbell E=Total Environmental Score, ESA=Environmental Sector Average Score, EI=Environmental Intent, ER=Environmental Reporting, EP=Environmental Performance, S=Total Social Score, SSA=Social Sector Average Score, SI=Social Intent, SR=Social Reporting, SP=Social Performance Comparison with sector averages Distribution of points Source of points E 86 ES A E 53% S SSA 0 25 50 73 51 50 S 47% 30 14 EI 75 ER EP SI SR Allergan SP Environmental Intent Score Max Score % General Comment Accountability Question Category 4 4 100 Excellent Management 7 8 88 Excellent Policy 9 12 75 Excellent Vision 4 4 100 Excellent Environmental Reporting Question Category Score Max Score % General Comment Emissions to Air 24 49 49 Needs improvement Emissions to Water 12 21 57 Good Energy 9 14 64 Good Management 10 21 48 Needs improvement Materials Usage 4 14 29 Needs improvement Recycling 6 14 43 Needs improvement Waste 6 35 17 Needs substantial improvement Water 6 7 86 Excellent Social Intent Question Category Score Max Score % General Comment Accountability 2 4 50 Good Management 9 10 90 Excellent Policy 6 6 100 Social Demographic 0 2 0 Needs substantial improvement Vision 2 4 50 Good Excellent Social Reporting Question Category Score Max Score % General Comment Accountability 3 7 43 Needs improvement Human Rights 30 77 39 Needs improvement Management 7 7 100 Excellent Qualitative Social 25 56 45 Needs improvement Quantitative Social 10 49 20 Needs substantial improvement www.roberts.cmc.edu 31 Drugs and Biotechnology Sectors D AmerisourceBergen AmerisourceBergen 2011 Code of Ethics and Business Conduct and 2011 Web Pages AmerisourceBergen has no significant reporting of environmental sustainability. There is no published corporate sustainability report and the web pages have no information about an environmental protection policy. The company does have a large Code of Ethics and Business Conduct, which provides the basic policies for human rights. However, it should go into more detail to show how these polices are implemented and enforced in order to protect workers’ rights. Analyst 1: Eric Robert King Analyst 2: Erin Mastagni E=Total Environmental Score, ESA=Environmental Sector Average Score, EI=Environmental Intent, ER=Environmental Reporting, EP=Environmental Performance, S=Total Social Score, SSA=Social Sector Average Score, SI=Social Intent, SR=Social Reporting, SP=Social Performance Comparison with sector averages Distribution of points Source of points E 3% E ES A 19 8 7 4 S S 97% SSA 0 25 50 75 EI 0 0 ER EP AmerisourceBergen SI SR SP Environmental Intent Score Max Score % General Comment Accountability Question Category 1 4 25 Needs improvement Management 0 8 0 Needs substantial improvement Policy 0 12 0 Needs substantial improvement Vision 0 4 0 Needs substantial improvement Environmental Reporting Question Category Score Max Score % General Comment Emissions to Air 0 49 0 Needs substantial improvement Emissions to Water 0 21 0 Needs substantial improvement Energy 0 14 0 Needs substantial improvement Management 0 21 0 Needs substantial improvement Materials Usage 0 14 0 Needs substantial improvement Recycling 0 14 0 Needs substantial improvement Waste 0 35 0 Needs substantial improvement Water 0 7 0 Needs substantial improvement Social Intent Question Category Score Max Score % General Comment Accountability 0 4 0 Needs substantial improvement Management 0 10 0 Needs substantial improvement Policy 2 6 33 Needs improvement Social Demographic 0 2 0 Needs substantial improvement Vision 0 4 0 Needs substantial improvement Social Reporting Question Category Score Max Score % General Comment Accountability 0 7 0 Needs substantial improvement Human Rights 24 77 31 Needs improvement Management 0 7 0 Needs substantial improvement Qualitative Social 6 56 11 Needs substantial improvement Quantitative Social 1 49 2 Needs substantial improvement www.roberts.cmc.edu 32 Drugs and Biotechnology Sectors A+ Amgen 2011 Environmental Sustainability Report, Code of Conduct, and 2011 web pages Amgen Amgen’s Corporate Responsibility extends to community development, social health care, and education. The Amgen Foundation prepares a separate Charitable Contributions Report that details social work and that is available on the company’s website. Amgen’s sustainability commitment is expressed through its governance, sustainability plan and stakeholder engagement. Amgen is also taking organizational steps to reduce their environmental impact through green innovation in biology, chemistry, packaging and logistics. The company's initiatives include composting at factories and the introduction of better water usage solutions. In the social sector, Amgen is involved in many wildlife and nature conservancy initiatives including the Heal the Bay and Merito Academy conservation programs and youth awareness initiatives. The Amgen foundation also sponsors a well developed scholarship program, student biotechnology lab and is involved in science education. Amgen boasts an employee body that shares ‘a deep appreciation for the natural world’ and the company has many staff volunteering programs. Analyst 1: Ratik Asokan Analyst 2: Sachi Singh E=Total Environmental Score, ESA=Environmental Sector Average Score, EI=Environmental Intent, ER=Environmental Reporting, EP=Environmental Performance, S=Total Social Score, SSA=Social Sector Average Score, SI=Social Intent, SR=Social Reporting, SP=Social Performance Comparison with sector averages Distribution of points Source of points E 85 82 ES A E 47% S S 53% SSA 0 25 50 56 50 38 24 Amgen EI 75 ER EP SI SR SP Environmental Intent Question Category Accountability Score Max Score % General Comment 4 4 100 Excellent Management 6 8 75 Excellent Policy 10 12 83 Excellent Vision 3 4 75 Excellent Score Max Score % General Comment 7 49 14 Needs substantial improvement Environmental Reporting Question Category Emissions to Air Emissions to Water 0 21 0 Needs substantial improvement Energy 12 14 86 Excellent Management 7 21 33 Needs improvement Materials Usage 5 14 36 Needs improvement Recycling 9 14 64 Good Waste 29 35 83 Excellent Water 6 7 86 Excellent Social Intent Question Category Score Max Score % General Comment Accountability 4 4 100 Excellent Management 8 10 80 Excellent Policy 6 6 100 Excellent Social Demographic 2 2 100 Excellent Vision 2 4 50 Good Social Reporting Question Category Score Max Score % General Comment Accountability 6 7 86 Excellent Human Rights 42 77 55 Good Management 0 7 0 Needs substantial improvement Qualitative Social 34 56 61 Good Quantitative Social 18 49 37 Needs improvement www.roberts.cmc.edu 33 Drugs and Biotechnology Sectors B+ Astellas Pharma 2010 CSR Report, and 2011 Web Pages Astellas Pharma Astellas Pharma publishes a detailed CSR Report annually. This report is supplemented by a detailed Social Responsibility section of its corporate web pages. Although the report and web pages contain a great deal of both qualitative and quantitative data, the company could make two large improvements to its publications. Notably lacking from these publications is a detailed Code of Conduct. A general code is published in both the CSR Report and on the web pages; however, this code does not address the majority of the human rights items on the PSI. Items not addressed include: political contributions, bribery, fair compensation of employees, degrading treatment or punishment of employees, free association and collective bargaining of employees, and elimination of forced and compulsory labor. In addition to these large, unaddressed items, there is no mention of action to reinforce policy, monitoring, or quantitative indication of compliance for the few human rights items the Code of Conduct covers. Through the publication of information relevant to these items, the company would demonstrate its commitment to being a responsible employer and corporate citizen. Another general area in which the company could improve its reporting is quantitative data pertaining to environmental emissions. Astellas Pharma publishes enough quantitative data for the provision of a general outline of its environmental emissions. The publication of quantitative data in these groups would provide a more complete description of the company’s environmental impact and demonstrate its commitment to the many environmental policies and goals stated in its CSR Report. Analyst 1: Elizabeth Duckworth Analyst 2: Carolyn Campbell E=Total Environmental Score, ESA=Environmental Sector Average Score, EI=Environmental Intent, ER=Environmental Reporting, EP=Environmental Performance, S=Total Social Score, SSA=Social Sector Average Score, SI=Social Intent, SR=Social Reporting, SP=Social Performance Comparison with sector averages Distribution of points Source of points E 79 ES A E 5 1% S SSA 0 25 50 65 S 49% 40 39 18 EI 75 ER EP 23 Astellas Pharma SI SR SP Environmental Intent Score Max Score % General Comment Accountability Question Category 4 4 100 Excellent Management 7 8 88 Excellent Policy 7 12 58 Good Vision 4 4 100 Excellent Environmental Reporting Question Category Score Max Score % General Comment Emissions to Air 23 49 47 Needs improvement Emissions to Water 4 21 19 Needs substantial improvement Energy 5 14 36 Needs improvement Management 8 21 38 Needs improvement Materials Usage 0 14 0 Needs substantial improvement Recycling 2 14 14 Needs substantial improvement Waste 12 35 34 Needs improvement Water 5 7 71 Good Social Intent Question Category Score Max Score % General Comment Accountability 2 4 50 Good Management 5 10 50 Good Policy 6 6 100 Excellent Social Demographic 2 2 100 Excellent Vision 2 4 50 Good Social Reporting Question Category Score Max Score % General Comment Accountability 3 7 43 Needs improvement Human Rights 37 77 48 Needs improvement Management 4 7 57 Good Qualitative Social 15 56 27 Needs improvement Quantitative Social 7 49 14 Needs substantial improvement www.roberts.cmc.edu 34 Drugs and Biotechnology Sectors B- AstraZeneca 2010 Annual Report, Code of Conduct, and 2011 Web Pages AstraZeneca While AstraZeneca did well in discussing aspects of environmental intent including climate change, biodiversity and green chemistry; in its 2010 Annual Report and supporting web pages AstraZeneca fails to present relevant information and quantitative data to support many of its claims of environmental responsibility. On its website AstraZeneca states that “managing our environmental impact continues to be a priority”, yet hardly any quantitative data is reported supporting this statement. Socially, AstraZeneca reports some quantitative data to support its discussion of topics such as lost workday and accident rate. Yet, there are many fields that still need more thorough reporting such as fines, violations, and investments. In addition, the Code of Conduct lacks discussion of many policies regarding employee treatment, labor practices, and harassment. An improvement in reporting quantitative data along with presenting initiatives to support the discussion of many topics will improve AstraZeneca’s score greatly. Analyst 1: Jordan Lieberman Analyst 2: Karen de Wolski E=Total Environmental Score, ESA=Environmental Sector Average Score, EI=Environmental Intent, ER=Environmental Reporting, EP=Environmental Performance, S=Total Social Score, SSA=Social Sector Average Score, SI=Social Intent, SR=Social Reporting, SP=Social Performance Comparison with sector averages Distribution of points Source of points E 85 E 34% ES A 61 42 S S 66% SSA 0 25 50 EI 75 15 8 ER EP 9 SI SR AstraZeneca SP Environmental Intent Score Max Score % General Comment Accountability Question Category 2 4 50 Good Management 2 8 25 Needs improvement Policy 9 12 75 Excellent Vision 4 4 100 Excellent Environmental Reporting Question Category Score Max Score % General Comment Emissions to Air 7 49 14 Needs substantial improvement Emissions to Water 0 21 0 Needs substantial improvement Energy 2 14 14 Needs substantial improvement Management 0 21 0 Needs substantial improvement Materials Usage 3 14 21 Needs substantial improvement Recycling 0 14 0 Needs substantial improvement Waste 8 35 23 Needs substantial improvement Water 3 7 43 Needs improvement Social Intent Question Category Score Max Score % General Comment Accountability 3 4 75 Excellent Management 7 10 70 Good Policy 6 6 100 Excellent Social Demographic 2 2 100 Excellent Vision 4 4 100 Excellent Social Reporting Question Category Score Max Score % General Comment Accountability 3 7 43 Needs improvement Human Rights 24 77 31 Needs improvement Management 6 7 86 Excellent Qualitative Social 16 56 29 Needs improvement Quantitative Social 11 49 22 Needs substantial improvement www.roberts.cmc.edu 35 Drugs and Biotechnology Sectors B+ Biogen Idec Corporate Citizenship Report, Code of Business Conduct, and 2012 Web Pages Biogen Idec Inc. Biogen Idec’s corporate sustainability report addresses much of the criteria on which the Pacific Sustainability Index (PSI) focuses. The report centers on four main pillars: patients, community, environment and employees. The patients section discusses Biogen Idec’s focus on neglected diseases and patient care programs, such as free or discounted medications. The community section details philanthropic efforts, largely focused on improving access to science education. The environment section provides a robust discussion of environmental initiatives as Biogen Idec works to reduce its footprint by 15% by 2015 from 2006 levels. Finally, the employee section details programs to improve company culture, employee work life and diversity. In addition, Biogen Idec’s corporate sustainability report includes a detailed GRI index and a number of anecdotes to contextualize its corporate sustainability efforts. Two impressive anecdotes include the continued optimization of the cogeneration facility in Cambridge and the creation of a disposable hybrid manufacturing facility in North Carolina. Biogen Idec also participates in the Pharmaceutical Supply Chain Initiative (PSCI), an industry wide initiative working to help its suppliers build their governance, social and environmental capabilities. Overall, Biogen Idec provides a high quality corporate sustainability report with relevant environmental and social information. Analyst 1: Karina Gomez Analyst 2: Bukola Jimoh E=Total Environmental Score, ESA=Environmental Sector Average Score, EI=Environmental Intent, ER=Environmental Reporting, EP=Environmental Performance, S=Total Social Score, SSA=Social Sector Average Score, SI=Social Intent, SR=Social Reporting, SP=Social Performance Comparison with sector averages Distribution of points Source of points E 82 E 45% ES A S S 55% SSA 0 25 50 73 47 35 25 14 EI 75 ER EP Biogen Idec Inc. SI SR SP Environmental Intent Score Max Score % General Comment Accountability Question Category 4 4 100 Excellent Management 6 8 75 Excellent Policy 9 12 75 Excellent Vision 4 4 100 Excellent Environmental Reporting Question Category Score Max Score % General Comment Emissions to Air 18 49 37 Needs improvement Emissions to Water 0 21 0 Needs substantial improvement Energy 7 14 50 Good Management 5 21 24 Needs substantial improvement Materials Usage 2 14 14 Needs substantial improvement Recycling 8 14 57 Good Waste 7 35 20 Needs substantial improvement Water 4 7 57 Good Social Intent Question Category Score Max Score % General Comment Accountability 2 4 50 Good Management 6 10 60 Good Policy 6 6 100 Excellent Social Demographic 1 2 50 Good Vision 4 4 100 Excellent Social Reporting Question Category Score Max Score % General Comment Accountability 7 7 100 Excellent Human Rights 36 77 47 Needs improvement Management 3 7 43 Needs improvement Qualitative Social 22 56 39 Needs improvement Quantitative Social 16 49 33 Needs improvement www.roberts.cmc.edu 36 Drugs and Biotechnology Sectors A- Bristol-Myers Squibb 2004-2005 Corporate Social Responsibility, 2010 Standards of Business Conduct and Ethics and 2011 Web Pages Bristol-Myers Squibb Bristol-Myers Squibb does a good job of reporting its environmental sustainability practices through its 2010 Corporate Sustainability Report and 2011 web pages. Interestingly, the company sees both risk and opportunity from climate change. Bristol-Myers recognizes that is creates risks just from being in the pharmaceutical industry but also sees an opportunity to gain a competitive advantage by being the best at reducing emissions and conserving energy. Additionally, the company’s “Go Green” plan focuses on initiatives that employees can use at work and at home to become more sustainable. Bristol-Myers Squibb reports quantitative data, including the basic data on energy consumed and greenhouse gas emissions. However, there are many categories that the company only mentions briefly and does not include any data for, such as carbon monoxide and nitrogen oxide. In addition, the exact data values are not reported for many of the categories, only graphs that show the range in which each data value falls. For social sustainability reporting, the company provides the basic policies against discrimination and child labor, but it leaves out other crucial details such on policies against forced labor. Analyst 1: Eric Robert King Analyst 2: Karen de Wolski E=Total Environmental Score, ESA=Environmental Sector Average Score, EI=Environmental Intent, ER=Environmental Reporting, EP=Environmental Performance, S=Total Social Score, SSA=Social Sector Average Score, SI=Social Intent, SR=Social Reporting, SP=Social Performance Comparison with sector averages Distribution of points Source of points E 93 E 43% ES A S 58 SSA 0 25 50 31 S 57% EI 75 ER 59 18 EP 18 SI SR Bristol-Myers Squibb SP Environmental Intent Question Category Accountability Score Max Score % General Comment 4 4 100 Excellent Management 7 8 88 Excellent Policy 12 12 100 Excellent Vision 3 4 75 Excellent Environmental Reporting Question Category Score Max Score % General Comment Emissions to Air 13 49 27 Needs improvement Emissions to Water 1 21 5 Needs substantial improvement Energy 7 14 50 Good Management 3 21 14 Needs substantial improvement Materials Usage 0 14 0 Needs substantial improvement Recycling 3 14 21 Needs substantial improvement Waste 15 35 43 Needs improvement Water 6 7 86 Excellent Social Intent Question Category Score Max Score % General Comment Accountability 3 4 75 Excellent Management 3 10 30 Needs improvement Policy 6 6 100 Excellent Social Demographic 0 2 0 Needs substantial improvement Vision 3 4 75 Excellent Social Reporting Question Category Score Max Score % General Comment Accountability 3 7 43 Needs improvement Human Rights 42 77 55 Good Management 4 7 57 Good Qualitative Social 21 56 38 Needs improvement Quantitative Social 19 49 39 Needs improvement www.roberts.cmc.edu 37 Drugs and Biotechnology Sectors D+ Cardinal Health 2009 Standards of Business Conduct and 2011 Web Pages Cardinal Health Cardinal Health’s 2009 Business Conduct report focuses purely on its social behavior and working environment. The company’s stance on any environmental issue is not present in the report, or its web pages. The only quantitative information provided is of investment in the community. Cardinal Health does reach out to its community, and donates $1 million a year, plus $100 million to help with efficiency in the healthcare system. The company also encourages its employees to volunteer in the community. Made up largely of company employees volunteering their time, Cardinal Health Chamber Orchestra performs for those unable to attend live performances. Cardinal Health does not provide information about its employees’ satisfaction, or their safety in the workplace. Analyst 1: Whitney Ellen Dawson Analyst 2: Karen de Wolski E=Total Environmental Score, ESA=Environmental Sector Average Score, EI=Environmental Intent, ER=Environmental Reporting, EP=Environmental Performance, S=Total Social Score, SSA=Social Sector Average Score, SI=Social Intent, SR=Social Reporting, SP=Social Performance Comparison with sector averages Distribution of points Source of points E 5% E ES A 46 29 S 14 11 S 95% SSA 0 25 50 75 EI 0 0 ER EP Cardinal Health SI SR SP Environmental Intent Score Max Score % General Comment Accountability Question Category 0 4 0 Needs substantial improvement Management 2 8 25 Needs improvement Policy 0 12 0 Needs substantial improvement Vision 1 4 25 Needs improvement Environmental Reporting Question Category Score Max Score % General Comment Emissions to Air 0 49 0 Needs substantial improvement Emissions to Water 0 21 0 Needs substantial improvement Energy 0 14 0 Needs substantial improvement Management 0 21 0 Needs substantial improvement Materials Usage 0 14 0 Needs substantial improvement Recycling 0 14 0 Needs substantial improvement Waste 0 35 0 Needs substantial improvement Water 0 7 0 Needs substantial improvement Social Intent Question Category Score Max Score % General Comment Accountability 0 4 0 Needs substantial improvement Management 3 10 30 Needs improvement Policy 6 6 100 Excellent Social Demographic 1 2 50 Good Vision 2 4 50 Good Social Reporting Question Category Score Max Score % General Comment Accountability 0 7 0 Needs substantial improvement Human Rights 24 77 31 Needs improvement Management 0 7 0 Needs substantial improvement Qualitative Social 22 56 39 Needs improvement Quantitative Social 2 49 4 Needs substantial improvement www.roberts.cmc.edu 38 Drugs and Biotechnology Sectors A- Daiichi Sankyo 2010 Corporate Sustainability Report, Social Contribution Activities Report and 2011 Web Pages Daiichi Sankyo Daiichi Sankyo does a good job of reporting its environmental sustainability practices through its 2010 Corporate Sustainability Social Contribution Activity Policies. The company provides extensive information on its environmental accounting by including a chart of all of its environmental expenses. In addition it includes an entire section on health and safety within the organization, with polices for employees who are working long hours and return to work assistance. One area in which the company fails to report much information is climate change. Daiichi Sankyo claims to set targets for moderating climate change but the report fails to include any of these targets. Daiichi Sankyo does a decent job of reporting environmental quantitative data, including the basic data on energy consumed and greenhouse gas emissions. However there is not much data regarding social community investment or any mention of health and safety citations or fines. For social sustainability reporting, the company provides information on human rights policies, including many actions to reinforce its policies for sexual harassment and reasonable working hours. Daiichi Sankyo could improve by extending these actions to reinforce its social polices. Analyst 1: Eric Robert King Analyst 2: Karen de Wolski E=Total Environmental Score, ESA=Environmental Sector Average Score, EI=Environmental Intent, ER=Environmental Reporting, EP=Environmental Performance, S=Total Social Score, SSA=Social Sector Average Score, SI=Social Intent, SR=Social Reporting, SP=Social Performance Comparison with sector averages Distribution of points Source of points E 75 ES A E 5 1% S SSA 0 25 50 77 S 49% 46 44 22 EI 75 ER EP 20 SI SR Daiichi Sankyo SP Environmental Intent Score Max Score % General Comment Accountability Question Category 2 4 50 Good Management 8 8 100 Excellent Policy 8 12 67 Good Vision 3 4 75 Excellent Environmental Reporting Question Category Score Max Score % General Comment Emissions to Air 16 49 33 Needs improvement Emissions to Water 8 21 38 Needs improvement Energy 8 14 57 Good Management 5 21 24 Needs substantial improvement Materials Usage 4 14 29 Needs improvement Recycling 7 14 50 Good Waste 15 35 43 Needs improvement Water 5 7 71 Good Social Intent Question Category Score Max Score % General Comment Accountability 4 4 100 Excellent Management 6 10 60 Good Policy 6 6 100 Excellent Social Demographic 2 2 100 Excellent Vision 2 4 50 Good Social Reporting Question Category Score Max Score % General Comment Accountability 6 7 86 Excellent Human Rights 35 77 45 Needs improvement Management 4 7 57 Good Qualitative Social 21 56 38 Needs improvement Quantitative Social 6 49 12 Needs substantial improvement www.roberts.cmc.edu 39 Drugs and Biotechnology Sectors B- Eisai 2009 Code of Conduct, 2009 Environmnetal and Social Report, and 2011 Web Pages EISAI Eisai enacts various progressive initiatives, such as providing Revovir to treat hepatitis B in the Philippines at a reduced cost under its affordable pricing policy. The company promotes “capacity building” to strengthen development in developing countries and is committed to developing cure for neglected diseases. However, much of Eisai’s data is incomplete, provided only for some plants and lacking discussion of its initiatives in areas such as packaging materials, BOD, COD, and hazardous waste. Women in management and age demographic data were provided, but initiatives to combat discrimination were not mentioned. Likewise, the percent of employees with disabilities was given while policies outlining the steps Eisai is taking to accommodate these individuals were not available. Adding information in such areas would greatly improve the company’s score. Analyst 1: Ashley Scott Analyst 2: Carolyn Campbell E=Total Environmental Score, ESA=Environmental Sector Average Score, EI=Environmental Intent, ER=Environmental Reporting, EP=Environmental Performance, S=Total Social Score, SSA=Social Sector Average Score, SI=Social Intent, SR=Social Reporting, SP=Social Performance Comparison with sector averages Distribution of points Source of points E E 36% ES A 68 50 S 17 S 64% SSA 0 25 50 EI 75 ER 43 16 4 EP SI SR EISAI SP Environmental Intent Score Max Score % General Comment Accountability Question Category 3 4 75 Excellent Management 7 8 88 Excellent Policy 7 12 58 Good Vision 2 4 50 Good Environmental Reporting Question Category Score Max Score % General Comment Emissions to Air 7 49 14 Needs substantial improvement Emissions to Water 0 21 0 Needs substantial improvement Energy 6 14 43 Needs improvement Management 2 21 10 Needs substantial improvement Materials Usage 1 14 7 Needs substantial improvement Recycling 4 14 29 Needs improvement Waste 3 35 9 Needs substantial improvement Water 0 7 0 Needs substantial improvement Social Intent Question Category Score Max Score % General Comment Accountability 0 4 0 Needs substantial improvement Management 4 10 40 Needs improvement Policy 5 6 83 Excellent Social Demographic 0 2 0 Needs substantial improvement Vision 4 4 100 Excellent Social Reporting Question Category Score Max Score % General Comment Accountability 3 7 43 Needs improvement Human Rights 20 77 26 Needs improvement Management 3 7 43 Needs improvement Qualitative Social 29 56 52 Good Quantitative Social 11 49 22 Needs substantial improvement www.roberts.cmc.edu 40 Drugs and Biotechnology Sectors B+ Eli Lilly & Co 2012 Web Pages Eli Lilly Eli Lilly & Co provides sustainability reporting in the form of its Position on the Disposal of Unused Medicines in the U.S., Position on Pharmaceuticals in the Environment, Communication on Progress to the United Nations Global Compact 2010 Report, Charitable Giving 2009, Key Indicators Table, and 2011 web [pges. The company demonstrates a strong commitment to social and environmental responsibility. The company reports its emission levels of carbon monoxide, ozone depleting substances, nitrogen oxides, particulate matter, and sulfur oxides. However, units for these emission levels are not provided. Furthermore, the company’s transparency is not as evident due to its lack of third party auditing. The amount of solid waste recycled is reported as a percentage, making it unclear as to how much waste is recycled quantitatively. However, the company’s investment in environmental measures is made evident by its 529 million dollar Energy, Waste, and Water Reduction Fund. Analyst 1: Hilary Haskell Analyst 2: Bukola Jimoh E=Total Environmental Score, ESA=Environmental Sector Average Score, EI=Environmental Intent, ER=Environmental Reporting, EP=Environmental Performance, S=Total Social Score, SSA=Social Sector Average Score, SI=Social Intent, SR=Social Reporting, SP=Social Performance Comparison with sector averages Distribution of points Source of points E S 51 25 50 32 S 58% SSA 0 81 75 E 42% ES A EI 75 ER 25 18 EP Eli Lilly SI SR SP Environmental Intent Score Max Score % General Comment Accountability Question Category 3 4 75 Excellent Management 7 8 88 Excellent Policy 7 12 58 Good Vision 4 4 100 Excellent Environmental Reporting Question Category Score Max Score % General Comment Emissions to Air 25 49 51 Good Emissions to Water 0 21 0 Needs substantial improvement Energy 7 14 50 Good Management 2 21 10 Needs substantial improvement Materials Usage 2 14 14 Needs substantial improvement Recycling 1 14 7 Needs substantial improvement Waste 7 35 20 Needs substantial improvement Water 5 7 71 Good Social Intent Question Category Score Max Score % General Comment Accountability 1 4 25 Needs improvement Management 8 10 80 Excellent Policy 6 6 100 Excellent Social Demographic 2 2 100 Excellent Vision 4 4 100 Excellent Social Reporting Question Category Score Max Score % General Comment Accountability 3 7 43 Needs improvement Human Rights 37 77 48 Needs improvement Management 4 7 57 Good Qualitative Social 25 56 45 Needs improvement Quantitative Social 15 49 31 Needs improvement www.roberts.cmc.edu 41 Drugs and Biotechnology Sectors C+ Genzyme 2009 Environmental Compliance Report, 2009 Environmental Impact Report, 2008 Code of Conduct, and 2011 Web Pages Genzyme For such a large and prestigious biotech company, Genzyme’s lack of environmental reporting is surprising. No environmental report exists and the environmental information given only consists of a few web pages. While separate reports indicating the company’s compliance with environmental standards and its impact on the environment are posted on the website, the data given does not incorporate all of the company’s operations. The only quantitative data given was for energy and water used, air emissions, and wasted generated, with no distinction given between the various aspects of these data values, such as renewable energy vs. nonrenewable energy. Furthermore, the data is given in bar graphs with some graphs missing exact data values. • While there is more social data given than environmental, it too is lacking for such as large company. The company does a good job of reporting its social commitments to communities, such as providing humanitarian assistance and its free drug programs. Yet apart from a few pages in the Code of Conduct, the website includes very little information about Genzyme’s social commitment to employees, such as employee education and equal opportunity hiring practices. There is also no information given regarding occupation health and safety protection. Analyst 1: Sam Kahr Analyst 2: Erin Franks E=Total Environmental Score, ESA=Environmental Sector Average Score, EI=Environmental Intent, ER=Environmental Reporting, EP=Environmental Performance, S=Total Social Score, SSA=Social Sector Average Score, SI=Social Intent, SR=Social Reporting, SP=Social Performance Comparison with sector averages Distribution of points Source of points E 39 ES A E 47% S S 53% SSA 0 25 50 35 32 37 7 4 EI 75 ER EP SI SR Genzyme SP Environmental Intent Score Max Score % General Comment Accountability Question Category 2 4 50 Good Management 4 8 50 Good Policy 3 12 25 Needs improvement Vision 2 4 50 Good Environmental Reporting Question Category Score Max Score % General Comment Emissions to Air 10 49 20 Needs substantial improvement Emissions to Water 2 21 10 Needs substantial improvement Energy 5 14 36 Needs improvement Management 8 21 38 Needs improvement Materials Usage 0 14 0 Needs substantial improvement Recycling 4 14 29 Needs improvement Waste 9 35 26 Needs improvement Water 4 7 57 Good Social Intent Question Category Score Max Score % General Comment Accountability 0 4 0 Needs substantial improvement Management 3 10 30 Needs improvement Policy 3 6 50 Good Social Demographic 1 2 50 Good Vision 2 4 50 Good Social Reporting Question Category Score Max Score % General Comment Accountability 3 7 43 Needs improvement Human Rights 14 77 18 Needs substantial improvement Management 0 7 0 Needs substantial improvement Qualitative Social 31 56 55 Good Quantitative Social 2 49 4 Needs substantial improvement www.roberts.cmc.edu 42 Drugs and Biotechnology Sectors D- Gilead Sciences 2010 Business Conduct Manual and, 2011 Web Pages Gilead Sciences Gilead Sciences’s 2011 web pages and Business Conduct Manual provide little sustainability information. There is no mention of environmental initiatives or policy. In regards to social sustainability, Gilead Sciences presents its Gilead Access program which provides pharmaceuticals to patients of the developing world. Beyond this, there is little mention of social efforts. Gilead Sciences does report efforts towards employee satisfaction, with various benefits including a refund program for continuing education in accredited 4-year colleges or universities. Analyst 1: Alan Hu Analyst 2: Bukola Jimoh E=Total Environmental Score, ESA=Environmental Sector Average Score, EI=Environmental Intent, ER=Environmental Reporting, EP=Environmental Performance, S=Total Social Score, SSA=Social Sector Average Score, SI=Social Intent, SR=Social Reporting, SP=Social Performance Comparison with sector averages Distribution of points Source of points E 5% E ES A 12 13 4 S S 95% SSA 0 25 50 75 EI 0 0 ER EP 2 SI SR Gilead Sciences SP Environmental Intent Score Max Score % General Comment Accountability Question Category 0 4 0 Needs substantial improvement Management 1 8 13 Needs substantial improvement Policy 0 12 0 Needs substantial improvement Vision 0 4 0 Needs substantial improvement Environmental Reporting Question Category Score Max Score % General Comment Emissions to Air 0 49 0 Needs substantial improvement Emissions to Water 0 21 0 Needs substantial improvement Energy 0 14 0 Needs substantial improvement Management 0 21 0 Needs substantial improvement Materials Usage 0 14 0 Needs substantial improvement Recycling 0 14 0 Needs substantial improvement Waste 0 35 0 Needs substantial improvement Water 0 7 0 Needs substantial improvement Social Intent Question Category Score Max Score % General Comment Accountability 0 4 0 Needs substantial improvement Management 2 10 20 Needs substantial improvement Policy 1 6 17 Needs substantial improvement Social Demographic 0 2 0 Needs substantial improvement Vision 0 4 0 Needs substantial improvement Social Reporting Question Category Score Max Score % General Comment Accountability 0 7 0 Needs substantial improvement Human Rights 10 77 13 Needs substantial improvement Management 0 7 0 Needs substantial improvement Qualitative Social 6 56 11 Needs substantial improvement Quantitative Social 1 49 2 Needs substantial improvement www.roberts.cmc.edu 43 Drugs and Biotechnology Sectors A- GlaxoSmithKline 2010 Corporate Responsibility Report, and Employee guide to Business Conduct GlaxoSmithKline GlaxoSmithKline has a strong stated commitment to both environmental and social sustainability. Its Sustainability Centre of Excellence has set forth a clear environmental strategy for the company, including more ambitious goals for reducing environmental impact than in previous years. Each department also maintains its own environmental sub-strategy, composed internally. In 2010, it became the first organization to achieve global certification for the Carbon Trust Standard; this certification recognizes GSK’s year-on-year performance in reducing carbon emissions. GSK also pledged $50 million to a joint venture with the Singapore Economic Development Board in support of research on sustainable manufacturing. Furthermore, GSK has begun to implement supplier screening based on environmental factors. The largest area for improvement within GSK’s CSR is within its quantitative data—although the data it provides is more than is included in a typical CSR, the company does not report data for a number of emissions and types of waste. •GSK performs equally well socially. It is committed to increase worldwide access to its medicines; the company ranked first on the Access To Medicine Index, which assesses companies’ efforts to provide medicine to those in need. In 2009-2010, the company invested £ 5 millions in improving healthcare infrastructure in leastdeveloped countries. GSK also has policies in place to ensure that human rights are protected. It conducts supplier screenings and includes a dedicated human rights clause in all supplier agreements. Furthermore, it has a robust Code of Conduct that clearly establishes policies that protect its own employees. However, there is a lack of reported monitoring for these policies – GSK should strive to provide adequate monitoring for its current policies. Analyst 1: Daniel Olmsted Analyst 2: Erin Franks E=Total Environmental Score, ESA=Environmental Sector Average Score, EI=Environmental Intent, ER=Environmental Reporting, EP=Environmental Performance, S=Total Social Score, SSA=Social Sector Average Score, SI=Social Intent, SR=Social Reporting, SP=Social Performance Comparison with sector averages Distribution of points Source of points E 82 ES A E 48% S S 52% SSA 0 25 50 81 50 43 24 23 GlaxoSmithKline EI 75 ER EP SI SR SP Environmental Intent Score Max Score % General Comment Accountability Question Category 4 4 100 Excellent Management 8 8 100 Excellent Policy 9 12 75 Excellent Vision 2 4 50 Good Score Max Score % General Comment 18 49 37 Needs improvement Needs improvement Environmental Reporting Question Category Emissions to Air Emissions to Water 6 21 29 Energy 10 14 71 Good Management 5 21 24 Needs substantial improvement Materials Usage 1 14 7 Needs substantial improvement Recycling 4 14 29 Needs improvement Waste 16 35 46 Needs improvement Water 6 7 86 Excellent Social Intent Question Category Score Max Score % General Comment Accountability 3 4 75 Excellent Management 6 10 60 Good Policy 6 6 100 Excellent Social Demographic 2 2 100 Excellent Vision 4 4 100 Excellent Social Reporting Question Category Score Max Score % General Comment Accountability 4 7 57 Good Human Rights 32 77 42 Needs improvement Management 4 7 57 Good Qualitative Social 23 56 41 Needs improvement Quantitative Social 19 49 39 Needs improvement www.roberts.cmc.edu 44 Drugs and Biotechnology Sectors A Johnson & Johnson 2009 Sustainability Report, 2009 Worldwide Contributions Report and, 2011 Web Pages Johnson & Johnson As one of the world’s largest pharmaceutical companies, Johnson & Johnson’s environmental and social reporting is subpar compared to its peer. Johnson & Johnson provides general social and environmental visionary statements, but do no address specific policies or challenges. Although there is an environmental literacy plan for employees, there is no mention of an environmental contact, management structure, expenditures, or third-party validation. However, there are sufficient quantitative data for energy, waste, water, and fines, both safety and environmental. In the one page Global Diversity and Inclusion Vision Statement, there are goals for a more diverse workforce, but no workforce profile is provided. Along with this, Johnson & Johnson provides a 2009 World Contributions Report which emphasizes the importance of community giving as well as providing local healthcare. In 2009 alone, $588 million in cash and products was given to non-profit organizations as well as in directly to people in need. Analyst 1: Simone Berkovitz Analyst 2: Carolyn Campbell E=Total Environmental Score, ESA=Environmental Sector Average Score, EI=Environmental Intent, ER=Environmental Reporting, EP=Environmental Performance, S=Total Social Score, SSA=Social Sector Average Score, SI=Social Intent, SR=Social Reporting, SP=Social Performance Comparison with sector averages Distribution of points Source of points E 79 E 38% ES A S 54 S 62% SSA 0 25 50 68 38 35 16 EI ER EP Johnson & Johnson SI SR SP 75 Environmental Intent Question Category Accountability Score Max Score % General Comment 1 4 25 Needs improvement Management 6 8 75 Excellent Policy 11 12 92 Excellent Vision 4 4 100 Excellent Score Max Score % General Comment 11 49 22 Needs substantial improvement Environmental Reporting Question Category Emissions to Air Emissions to Water 0 21 0 Needs substantial improvement Energy 11 14 79 Excellent Management 9 21 43 Needs improvement Materials Usage 3 14 21 Needs substantial improvement Recycling 4 14 29 Needs improvement Waste 9 35 26 Needs improvement Water 5 7 71 Good Social Intent Question Category Score Max Score % General Comment Accountability 3 4 75 Excellent Management 2 10 20 Needs substantial improvement Policy 5 6 83 Excellent Social Demographic 0 2 0 Needs substantial improvement Vision 4 4 100 Excellent Social Reporting Question Category Score Max Score % General Comment Accountability 0 7 0 Needs substantial improvement Human Rights 44 77 57 Good Management 6 7 86 Excellent Qualitative Social 35 56 63 Good Quantitative Social 28 49 57 Good www.roberts.cmc.edu 45 Drugs and Biotechnology Sectors B- McKesson 2010 Corporate Citizenship Report, 2009 Code of Business Conduct and Ethics, and 2011 Web Pages McKesson In its 2010 Corporate Citizenship Report and supporting web pages, McKesson appears to be minimal in reporting its environmental and social practices. While McKesson states that, “our commitment to environmental sustainability focuses on both reducing our impact on the planet and ensuring our company’s long-term viability” the report provides a small amount of quantitative data to support this claim. In addition, discussion of many environmental and social topics is vague and sparse. However, McKesson does a fair job in reporting its adoption of human rights practices as found in their Code of Business Conduct and Ethics. A more thorough report with supporting quantitative data would improve McKesson’s score greatly. Analyst 1: Jordan Lieberman Analyst 2: Bukola Jimoh E=Total Environmental Score, ESA=Environmental Sector Average Score, EI=Environmental Intent, ER=Environmental Reporting, EP=Environmental Performance, S=Total Social Score, SSA=Social Sector Average Score, SI=Social Intent, SR=Social Reporting, SP=Social Performance Comparison with sector averages Distribution of points Source of points E E 4 1% ES A S 38 25 50 22 S 59% SSA 0 62 54 EI 75 ER 18 14 EP SI SR McKesson SP Environmental Intent Score Max Score % General Comment Accountability Question Category 3 4 75 Excellent Management 4 8 50 Good Policy 4 12 33 Needs improvement Vision 4 4 100 Excellent Environmental Reporting Question Category Score Max Score % General Comment Emissions to Air 16 49 33 Needs improvement Emissions to Water 0 21 0 Needs substantial improvement Energy 5 14 36 Needs improvement Management 6 21 29 Needs improvement Materials Usage 0 14 0 Needs substantial improvement Recycling 1 14 7 Needs substantial improvement Waste 2 35 6 Needs substantial improvement Water 4 7 57 Good Social Intent Question Category Score Max Score % General Comment Accountability 1 4 25 Needs improvement Management 6 10 60 Good Policy 6 6 100 Excellent Social Demographic 1 2 50 Good Vision 2 4 50 Good Social Reporting Question Category Score Max Score % General Comment Accountability 0 7 0 Needs substantial improvement Human Rights 30 77 39 Needs improvement Management 3 7 43 Needs improvement Qualitative Social 21 56 38 Needs improvement Quantitative Social 7 49 14 Needs substantial improvement www.roberts.cmc.edu 46 Drugs and Biotechnology Sectors B Merck & Co. 2009-2010 Corporate Responsibility Review, Code of Conduct and 2011 Web Pages Merck & Co Merck & Co. reports its efforts toward environmental and social responsibility in its 2009-2010 Corporate Responsibility Review, Code of Conduct, and 2011 web pages. The company outlines a clear corporate responsibility vision and policy which is supports through a Global Safety and Environment Organization. Merck & Co. supports strong international and national policy measures to addressing climate change and takes steps to reduce water and energy demand, as well as GHG emissions from its operations. While Merck & Co. does not report data for many important environmental indicators, it reported multiple years of data for the topics it did include—energy use, water use, GHG emissions, VOC emissions, NOx emissions, SOx emissions, environmental violations, and fines. The company’s environmental reporting could be enhanced by including information on environmental expenses and investments, green purchasing, and habitat conservation, while also including additional quantitative data. •In regards to social responsibility reporting, Merck & Co. presents information on both employee and community programs. Over the past year, the company has improved performance in its employee turnover rate, accident rates, health and safety citations, and social community investment. Additionally, Merck & Co. focused efforts on community development and education, promoting women in management, occupational health and safety, and healthcare in low income communities. The company’s is committed to the principles of the UN Global Compact and outlines its human rights policies in its Code of Conduct. Analyst 1: Jaclyn T. D'Arcy Analyst 2: Carolyn Campbell E=Total Environmental Score, ESA=Environmental Sector Average Score, EI=Environmental Intent, ER=Environmental Reporting, EP=Environmental Performance, S=Total Social Score, SSA=Social Sector Average Score, SI=Social Intent, SR=Social Reporting, SP=Social Performance Comparison with sector averages Distribution of points Source of points E E 35% ES A S 65% SSA 25 50 50 26 S 0 50 43 21 Merck & Co 2 EI 75 ER EP SI SR SP Environmental Intent Score Max Score % General Comment Accountability Question Category 1 4 25 Needs improvement Management 3 8 38 Needs improvement Policy 6 12 50 Good Vision 2 4 50 Good Environmental Reporting Question Category Score Max Score % General Comment Emissions to Air 13 49 27 Needs improvement Emissions to Water 0 21 0 Needs substantial improvement Energy 5 14 36 Needs improvement Management 7 21 33 Needs improvement Materials Usage 1 14 7 Needs substantial improvement Recycling 1 14 7 Needs substantial improvement Waste 3 35 9 Needs substantial improvement Water 4 7 57 Good Social Intent Question Category Score Max Score % General Comment Accountability 1 4 25 Needs improvement Management 4 10 40 Needs improvement Policy 6 6 100 Excellent Social Demographic 0 2 0 Needs substantial improvement Vision 2 4 50 Good Social Reporting Question Category Score Max Score % General Comment Accountability 3 7 43 Needs improvement Human Rights 33 77 43 Needs improvement Management 2 7 29 Needs improvement Qualitative Social 21 56 38 Needs improvement Quantitative Social 21 49 43 Needs improvement www.roberts.cmc.edu 47 Drugs and Biotechnology Sectors D- Mylan Laboratories Mylan 2009 Annual Report and 2011 web pages Mylan has basically no environmental or social reporting data. Analyst 1: Danielle L. Manning Analyst 2: Karen de Wolski E=Total Environmental Score, ESA=Environmental Sector Average Score, EI=Environmental Intent, ER=Environmental Reporting, EP=Environmental Performance, S=Total Social Score, SSA=Social Sector Average Score, SI=Social Intent, SR=Social Reporting, SP=Social Performance Comparison with sector averages Distribution of points Source of points E 9% E ES A 12 14 7 S S 91% SSA 0 25 50 75 EI 0 0 ER EP Mylan Laboratories 0 SI SR SP Environmental Intent Score Max Score % General Comment Accountability Question Category 1 4 25 Needs improvement Management 0 8 0 Needs substantial improvement Policy 0 12 0 Needs substantial improvement Vision 1 4 25 Needs improvement Environmental Reporting Question Category Score Max Score % General Comment Emissions to Air 0 49 0 Needs substantial improvement Emissions to Water 0 21 0 Needs substantial improvement Energy 0 14 0 Needs substantial improvement Management 0 21 0 Needs substantial improvement Materials Usage 0 14 0 Needs substantial improvement Recycling 0 14 0 Needs substantial improvement Waste 0 35 0 Needs substantial improvement Water 0 7 0 Needs substantial improvement Social Intent Question Category Score Max Score % General Comment Accountability 0 4 0 Needs substantial improvement Management 0 10 0 Needs substantial improvement Policy 2 6 33 Needs improvement Social Demographic 0 2 0 Needs substantial improvement Vision 1 4 25 Needs improvement Social Reporting Question Category Score Max Score % General Comment Accountability 3 7 43 Needs improvement Human Rights 10 77 13 Needs substantial improvement Management 2 7 29 Needs improvement Qualitative Social 2 56 4 Needs substantial improvement Quantitative Social 0 49 0 Needs substantial improvement www.roberts.cmc.edu 48 Drugs and Biotechnology Sectors A- Group Annual Report 2010, Third Party Code of Conduct 2007, 2009 GRI Report, 2007 Corporate Citizenship Review, 2010 Perspectives on Key Issues, 2001 Code of Conduct and, 2011 Web Pages Novartis Novartis has an impressively detailed Corporate Citizenship report. The group discusses at length its efforts to integrate renewable energy at several of its major manufacturing sites across the globe. For example, its California facility generates up to 20% of its energy needs through on-site solar energy panels. Also, its generic drug manufacturing subsidiary, Sandoz India, generates nearly 85% of its energy through renewable energy- a portion of which includes steam that is a byproduct of the plant’s processes. Yet while Novartis prominently features its initiatives towards utilizing alternative energy sources, it is not transparent on its waste management practices. Specifically, the group is silent on whether it recycles its solid and office waste. Even though the company has made commendable commitments to expand use of renewable energy, it does not satisfactorily answer questions regarding waste resulting from its conventional resource consumption.•Novartis has taken the laudable steps of adopting the UN Development Compact and Clean Development Mechanism. Further, it promotes socially and environmentally responsible business processes by requiring that all its Class 1, or primary suppliers, to adhere to ethical business standards. However, the company fails to provide information on its hazardous materials usage and the quantity and nature of effluents it releases to natural water bodies. The company neglects to provide data on Green Chemistry initiatives, which would help qualify its commitment to reducing pollution at source. •Novartis substantiates its claims towards, “creating value through responsible business”, with undertakings such as the Novartis Institute of Tropical Diseases, which researches neglected diseases such as leprosy, malaria and dengue; whose treatment revenues are not central to the company’s bottom line, which highly commendable. Analyst 1: Leah Bross Analyst 2: Carolyn Campbell E=Total Environmental Score, ESA=Environmental Sector Average Score, EI=Environmental Intent, ER=Environmental Reporting, EP=Environmental Performance, S=Total Social Score, SSA=Social Sector Average Score, SI=Social Intent, SR=Social Reporting, SP=Social Performance Comparison with sector averages Distribution of points Source of points E S 88 79 E 40% ES A 62 36 S 60% SSA 0 25 50 23 12 EI 75 ER EP Novartis SI SR SP Environmental Intent Score Max Score % General Comment Accountability Question Category 3 4 75 Excellent Management 7 8 88 Excellent Policy 8 12 67 Good Vision 4 4 100 Excellent Environmental Reporting Question Category Score Max Score % General Comment Emissions to Air 12 49 24 Needs substantial improvement Emissions to Water 8 21 38 Needs improvement Energy 8 14 57 Good Management 5 21 24 Needs substantial improvement Materials Usage 0 14 0 Needs substantial improvement Recycling 0 14 0 Needs substantial improvement Waste 14 35 40 Needs improvement Water 4 7 57 Good Social Intent Question Category Score Max Score % General Comment Accountability 3 4 75 Excellent Management 8 10 80 Excellent Policy 6 6 100 Excellent Social Demographic 2 2 100 Excellent Vision 4 4 100 Excellent Social Reporting Question Category Score Max Score % General Comment Accountability 7 7 100 Excellent Human Rights 43 77 56 Good Management 4 7 57 Good Qualitative Social 27 56 48 Needs improvement Quantitative Social 14 49 29 Needs improvement www.roberts.cmc.edu 49 Drugs and Biotechnology Sectors B+ Novo Nordisk 2010 Financial, Social and Environmental Performance and, 2011 Web Pages Novo Nordisk For a company of more than 30,000 the quality and quantity of Novo Nordisk's environmental reporting is considerably low. While there is a lot of information posted on the company’s website, very little focuses on the sustainability commitments of the company. Rather, much of the information focuses on the development and marketing of the company’s products. Furthermore, the relevant environmental information that the company provides is not contained in a comprehensive sustainability report but rather in a supplement to the company’s annual report. The annual report is not well organized and it is very hard to differentiate between the environmental and financial information that is given. Information about employee welfare and social responsibility is also minimal, with no Code of Conduct available on the website. The company can greatly improve by including a separate sustainability report and Code of Conduct in addition to providing more data on the company’s environmental and social commitments. Analyst 1: Sam Kahr Analyst 2: Bukola Jimoh E=Total Environmental Score, ESA=Environmental Sector Average Score, EI=Environmental Intent, ER=Environmental Reporting, EP=Environmental Performance, S=Total Social Score, SSA=Social Sector Average Score, SI=Social Intent, SR=Social Reporting, SP=Social Performance Comparison with sector averages Distribution of points Source of points E E 43% ES A S SSA 0 25 50 62 61 30 S 57% 50 24 20 Novo Nordisk EI 75 ER EP SI SR SP Environmental Intent Score Max Score % General Comment Accountability Question Category 3 4 75 Excellent Management 5 8 63 Good Policy 5 12 42 Needs improvement Vision 4 4 100 Excellent Environmental Reporting Question Category Score Max Score % General Comment Emissions to Air 13 49 27 Needs improvement Emissions to Water 4 21 19 Needs substantial improvement Energy 6 14 43 Needs improvement Management 4 21 19 Needs substantial improvement Materials Usage 4 14 29 Needs improvement Recycling 5 14 36 Needs improvement Waste 9 35 26 Needs improvement Water 5 7 71 Good Social Intent Question Category Score Max Score % General Comment Accountability 2 4 50 Good Management 5 10 50 Good Policy 5 6 83 Excellent Social Demographic 0 2 0 Needs substantial improvement Vision 4 4 100 Excellent Social Reporting Question Category Score Max Score % General Comment Accountability 3 7 43 Needs improvement Human Rights 28 77 36 Needs improvement Management 6 7 86 Excellent Qualitative Social 30 56 54 Good Quantitative Social 11 49 22 Needs substantial improvement www.roberts.cmc.edu 50 Drugs and Biotechnology Sectors B+ Pfizer 2009 Sustainability Report, Code of Business Conduct, 2010 Orange Guide, 2010 Key Performance Indicators, 2007 Volunteering for Impact Best Practices in International Corporate Volunteering, and 2011 Web Pages Pfizer Pfizer covers a lot of social sustainability bases. Their web site is almost hard to navigate through due to the sheer amount of information available. Despite this, they have very few environmental quantitative measurements, and even less social ones. The numbers they do provide are clear, with a good industry related context. ••Pfizer's web site is rather scattered in its information, with some pages literally exactly the same in two or three different places. They have a few sections in a logical order, but within each sustainability page, there are hyperlinks leading to more information, and when followed those pages have links leading to more information, and when followed THOSE pages have links to other information, etc. This makes navigating the web site rather arduous, as each point assigned may be hidden deep within the inner confines of the web site, as opposed to the first page on the issue. ••More generally, the largest gap in the report is in employee relations, in which qualitative and quantitative measurements are almost nonexistent except for several vague descriptions of 'doing good.' Analyst 1: Quinn Chasan Analyst 2: Bukola Jimoh E=Total Environmental Score, ESA=Environmental Sector Average Score, EI=Environmental Intent, ER=Environmental Reporting, EP=Environmental Performance, S=Total Social Score, SSA=Social Sector Average Score, SI=Social Intent, SR=Social Reporting, SP=Social Performance Comparison with sector averages Distribution of points Source of points E 86 ES A E 49% S S 51% SSA 0 25 50 46 38 45 16 8 EI 75 ER EP SI SR Pfizer SP Environmental Intent Question Category Accountability Score Max Score % General Comment 2 4 50 Good Management 6 8 75 Excellent Policy 12 12 100 Excellent Vision 4 4 100 Excellent Environmental Reporting Question Category Score Max Score % General Comment Emissions to Air 16 49 33 Needs improvement Emissions to Water 0 21 0 Needs substantial improvement Energy 8 14 57 Good Management 7 21 33 Needs improvement Materials Usage 0 14 0 Needs substantial improvement Recycling 6 14 43 Needs improvement Waste 9 35 26 Needs improvement Water 5 7 71 Good Social Intent Question Category Score Max Score % General Comment Accountability 2 4 50 Good Management 3 10 30 Needs improvement Policy 5 6 83 Excellent Social Demographic 0 2 0 Needs substantial improvement Vision 2 4 50 Good Social Reporting Question Category Score Max Score % General Comment Accountability 3 7 43 Needs improvement Human Rights 30 77 39 Needs improvement Management 0 7 0 Needs substantial improvement Qualitative Social 28 56 50 Good Quantitative Social 11 49 22 Needs substantial improvement www.roberts.cmc.edu 51 Drugs and Biotechnology Sectors A Roche Group 2010 Business Report, 2005 Policy on Safety, Health and Environmental Protection, Code of Conduct, and 2011 Web Pages Roche Group Roche Group’s corporate sustainability reporting is detailed and thorough. The quality of the information provided is relevant and well-articulated for both environmental and social topics. Roche Group considers sustainability to require sustainable corporate performance in social, economic, and environmental facets of business. As Roche Group’s sustainability downloadables explain, the Safety Health and Environment (SHE) organization works to minimize Roche Group’s environmental and societal impacts. In addition to successfully coordinating and implementing SHE policy across Roche Group’s global presence, SHE extensively reports quantitative data about Roche Group’s emissions to the environment and work-related injuries. Other Roche Group organizations, like Re&Act work to facilitate employee volunteerism, and in the process progress Roche Group toward its goal of achieving social sustainability. ••Despite concise writing and quantitative data pertinent to Roche Group’s corporate footprint, the general organization of information was poor. The information is provided in a list of all downloadable documents in the Corporate Responsibility section of Roche Group’s website. Thus, documents pertinent to corporate sustainability reporting were short, and hard to find nestled between titles generally pertinent to Roche Group, such as Roche ‘n’ Jazz and Museum Tinguely. Creating a corporate sustainability report by compiling and organizing documents pertinent to Roche Group’s environmental and societal impacts would increase the effectiveness of information Roche Group has already provided. A report facilitating easier access to Roche Group’s information is close to finished, as all necessary information is clearly documented in prose form. A file merge could create a corporate sustainability report surprisingly quickly. Analyst 1: Michael Handler Shoemaker Analyst 2: Karen de Wolski E=Total Environmental Score, ESA=Environmental Sector Average Score, EI=Environmental Intent, ER=Environmental Reporting, EP=Environmental Performance, S=Total Social Score, SSA=Social Sector Average Score, SI=Social Intent, SR=Social Reporting, SP=Social Performance Comparison with sector averages Distribution of points Source of points E S SSA 25 50 66 43 40 S 62% 0 81 79 E 38% ES A 8 EI 75 ER EP Roche Group SI SR SP Environmental Intent Question Category Accountability Score Max Score % General Comment 3 4 75 Excellent Management 7 8 88 Excellent Policy 10 12 83 Excellent Vision 2 4 50 Good Environmental Reporting Question Category Score Max Score % General Comment Emissions to Air 20 49 41 Needs improvement Emissions to Water 0 21 0 Needs substantial improvement Energy 5 14 36 Needs improvement Management 9 21 43 Needs improvement Materials Usage 0 14 0 Needs substantial improvement Recycling 2 14 14 Needs substantial improvement Waste 14 35 40 Needs improvement Water 4 7 57 Good Social Intent Question Category Score Max Score % General Comment Accountability 3 4 75 Excellent Management 9 10 90 Excellent Policy 6 6 100 Excellent Social Demographic 1 2 50 Good Vision 2 4 50 Good Social Reporting Question Category Score Max Score % General Comment Accountability 6 7 86 Excellent Human Rights 38 77 49 Needs improvement Management 7 7 100 Excellent Qualitative Social 45 56 80 Excellent Quantitative Social 21 49 43 Needs improvement www.roberts.cmc.edu 52 Drugs and Biotechnology Sectors B+ Sanofi-aventis 2009 Corporate Sustainability Report, Code of Ethics, Sustainable partnership Suppliers Code of Conduct, 2010-2011 Corporate Social Responsibility Brochure, and 2011 Web Pages Sanofi-Aventis Sanofi-aventis reports its environmental sustainability practices through its 2010 Corporate Sustainability Report and 2011 web pages. Specifically, the company outlines its future plans to help deal with climate change by reducing energy consumption and greenhouse gas emissions. In addition, Sanofiaventis provides a lot of information about its dedication towards fostering biodiversity. The company believes this is extremely important because “genetic resources offer valuable potential as sources of new chemical substances and active ingredients.” Despite these impressive details the company struggles when it comes to reporting on other important categories such as emergency preparedness or green chemistry. Sanofi-aventis does a good job of reporting quantitative data, including information from energy information to volatile organic compounds. However despite its extensive reporting, the company often has not improved from the previous year and needs to a find a way to lower their impact on the environment in the future. For social sustainability reporting, the company provides the basic policies against discrimination and child labor, but it leaves out other crucial details such on policies against forced labor and bribery. Analyst 1: Eric Robert King Analyst 2: Bukola Jimoh E=Total Environmental Score, ESA=Environmental Sector Average Score, EI=Environmental Intent, ER=Environmental Reporting, EP=Environmental Performance, S=Total Social Score, SSA=Social Sector Average Score, SI=Social Intent, SR=Social Reporting, SP=Social Performance Comparison with sector averages Distribution of points Source of points E 85 E 43% ES A S 57 S 57% SSA 0 25 50 47 36 20 12 EI 75 ER EP Sanofi-Aventis SI SR SP Environmental Intent Score Max Score % General Comment Accountability Question Category 2 4 50 Good Management 4 8 50 Good Policy 6 12 50 Good Vision 4 4 100 Excellent Environmental Reporting Question Category Score Max Score % General Comment Emissions to Air 18 49 37 Needs improvement Emissions to Water 8 21 38 Needs improvement Energy 5 14 36 Needs improvement Management 2 21 10 Needs substantial improvement Materials Usage 1 14 7 Needs substantial improvement Recycling 1 14 7 Needs substantial improvement Waste 11 35 31 Needs improvement Water 5 7 71 Good Social Intent Question Category Score Max Score % General Comment Accountability 4 4 100 Excellent Management 6 10 60 Good Policy 6 6 100 Excellent Social Demographic 2 2 100 Excellent Vision 4 4 100 Excellent Social Reporting Question Category Score Max Score % General Comment Accountability 3 7 43 Needs improvement Human Rights 28 77 36 Needs improvement Management 7 7 100 Excellent Qualitative Social 33 56 59 Good Quantitative Social 5 49 10 Needs substantial improvement www.roberts.cmc.edu 53 Drugs and Biotechnology Sectors D+ Suzuken 2011 Web Pages Suzuken A commitment to environmental and social responsibility is not evident in Suzuken’s 2011 web pages. The company does not provide substantiating quantitative data for any of the information it reports. Although the company’s website mentions a Code of Conduct, it is not available on the website. Suzuken does not demonstrate efforts towards environmental sustainability beyond what is required by laws and regulations. The company does not report any specific measures towards environmental issues such as waste reduction or recycling, reduction of air pollutant emissions, water conservation, or usage of renewable energy. Furthermore, Suzuken does not conduct any third-party audits, or provide any contact info on their website for communicating comments or concerns. Analyst 1: Hilary Haskell Analyst 2: Erin Franks E=Total Environmental Score, ESA=Environmental Sector Average Score, EI=Environmental Intent, ER=Environmental Reporting, EP=Environmental Performance, S=Total Social Score, SSA=Social Sector Average Score, SI=Social Intent, SR=Social Reporting, SP=Social Performance Comparison with sector averages Distribution of points Source of points E 50 E 36% ES A S 12 S 64% SSA 0 25 50 42 EI 75 2 0 ER EP SI SR 9 Suzuken SP Environmental Intent Score Max Score % General Comment Accountability Question Category 2 4 50 Good Management 5 8 63 Good Policy 5 12 42 Needs improvement Vision 2 4 50 Good Environmental Reporting Question Category Score Max Score % General Comment Emissions to Air 1 49 2 Needs substantial improvement Emissions to Water 0 21 0 Needs substantial improvement Energy 1 14 7 Needs substantial improvement Management 0 21 0 Needs substantial improvement Materials Usage 0 14 0 Needs substantial improvement Recycling 1 14 7 Needs substantial improvement Waste 0 35 0 Needs substantial improvement Water 0 7 0 Needs substantial improvement Social Intent Question Category Score Max Score % General Comment Accountability 1 4 25 Needs improvement Management 6 10 60 Good Policy 1 6 17 Needs substantial improvement Social Demographic 1 2 50 Good Vision 2 4 50 Good Social Reporting Question Category Score Max Score % General Comment Accountability 0 7 0 Needs substantial improvement Human Rights 16 77 21 Needs substantial improvement Management 0 7 0 Needs substantial improvement Qualitative Social 8 56 14 Needs substantial improvement Quantitative Social 0 49 0 Needs substantial improvement www.roberts.cmc.edu 54 Drugs and Biotechnology Sectors B Takeda Pharmaceutical 2010 Annual Report and 2011 Web Pages Takeda Pharmaceutical The largest and one of the oldest pharmaceutical companies in Asia, Takeda’s corporate sustainability reporting could be improved. The 2010 annual report covers most of the sections in PSI, but the many specific details or initiatives are missing. For example, most of the quantitative data provided only present data from 2009 and no past year’s data are given. There are a few sections where past data are presented, but only in the form of a bar graph, with no specific values. Takeda does provide a detailed accounting of their Quaility Assurance System as well as incorporation of the ten principles of the UN Global Compact into the CSR. There are also diagrams showing ways energy CO2 production is reduced. There is also no individual identified to answer questions about the report, but on the 2011 web pages there is an online feedback survey. Socially, Takeda demonstrates commitment to employees through their career development programs, training, benefits, etc. Analyst 1: Simone Berkovitz Analyst 2: Carolyn Campbell E=Total Environmental Score, ESA=Environmental Sector Average Score, EI=Environmental Intent, ER=Environmental Reporting, EP=Environmental Performance, S=Total Social Score, SSA=Social Sector Average Score, SI=Social Intent, SR=Social Reporting, SP=Social Performance Comparison with sector averages Distribution of points Source of points E 79 ES A 62 E 50% S S 50% SSA 0 25 50 34 EI 75 ER 39 18 EP 18 SI SR Takeda Pharmaceutical SP Environmental Intent Question Category Accountability Score Max Score % General Comment 2 4 50 Good Management 8 8 100 Excellent Policy 10 12 83 Excellent Vision 2 4 50 Good Environmental Reporting Question Category Score Max Score % General Comment Emissions to Air 17 49 35 Needs improvement Emissions to Water 4 21 19 Needs substantial improvement Energy 4 14 29 Needs improvement Management 3 21 14 Needs substantial improvement Materials Usage 0 14 0 Needs substantial improvement Recycling 6 14 43 Needs improvement Waste 14 35 40 Needs improvement Water 3 7 43 Needs improvement Social Intent Question Category Score Max Score % General Comment Accountability 1 4 25 Needs improvement Management 6 10 60 Good Policy 5 6 83 Excellent Social Demographic 2 2 100 Excellent Vision 2 4 50 Good Social Reporting Question Category Score Max Score % General Comment Accountability 3 7 43 Needs improvement Human Rights 23 77 30 Needs improvement Management 3 7 43 Needs improvement Qualitative Social 26 56 46 Needs improvement Quantitative Social 7 49 14 Needs substantial improvement www.roberts.cmc.edu 55 Drugs and Biotechnology Sectors C Teva Pharmaceutical Inds Teva Pharmaceutical Industries Limited 2006 Code of Business Conduct, 2010 United Nations Global Compact Communication on Progress, and 2011 Web Pages Teva Pharmaceutical’s web pages provide limited information on its social and environmental affairs. The company has a thorough Code of Conduct that covers relationships with its employees, customers and governments, as well as measures of compliance. Teva also has committees dedicated to the oversight of various operations within the company, such as Community Affairs and Corporate Governance. The company has recognized the importance of safety in the workplace and consequently has dedicated much time and efforts to ensure it. Teva completed a lengthy UN Global Compact Communication on Progress in 2010, which covers its commitments to social and environmental responsibilities. The company does not present substantial information on its commitment to the environment. Teva does not offer its position on climate change, nor does it provide quantitative data that reveal its direct impacts on the environment. Analyst 1: Whitney Ellen Dawson Analyst 2: Karen de Wolski E=Total Environmental Score, ESA=Environmental Sector Average Score, EI=Environmental Intent, ER=Environmental Reporting, EP=Environmental Performance, S=Total Social Score, SSA=Social Sector Average Score, SI=Social Intent, SR=Social Reporting, SP=Social Performance Comparison with sector averages Distribution of points Source of points E E 22% ES A 50 43 40 18 S S 78% SSA 0 25 50 EI 6 2 ER EP SI SR Teva Pharmaceutical Inds SP 75 Environmental Intent Score Max Score % General Comment Accountability Question Category 3 4 75 Excellent Management 3 8 38 Needs improvement Policy 2 12 17 Needs substantial improvement Vision 4 4 100 Excellent Environmental Reporting Question Category Score Max Score % General Comment Emissions to Air 2 49 4 Needs substantial improvement Emissions to Water 0 21 0 Needs substantial improvement Energy 1 14 7 Needs substantial improvement Management 0 21 0 Needs substantial improvement Materials Usage 1 14 7 Needs substantial improvement Recycling 2 14 14 Needs substantial improvement Waste 2 35 6 Needs substantial improvement Water 1 7 14 Needs substantial improvement Social Intent Question Category Score Max Score % General Comment Accountability 3 4 75 Excellent Management 3 10 30 Needs improvement Policy 5 6 83 Excellent Social Demographic 0 2 0 Needs substantial improvement Vision 2 4 50 Good Social Reporting Question Category Score Max Score % General Comment Accountability 3 7 43 Needs improvement Human Rights 36 77 47 Needs improvement Management 3 7 43 Needs improvement Qualitative Social 14 56 25 Needs improvement Quantitative Social 10 49 20 Needs substantial improvement www.roberts.cmc.edu 56 Drugs and Biotechnology Sectors A+ Merck (Germany) Responsibility Report, 2011 Corporate Responsibility Report, Code of Conduct and 2011 Web Pages The Merck Group Merck does a fantastic job covering nearly all aspects of both environmental and social sustainability somewhere in its reporting, to varying degrees. There are no gaping holes in their reporting; only fairly specific quantitative values or contextual measurements that are yet to be reported on. The only real trend I see is a lack of supplier information other than vague mentions of the selection process. Aside from the supplier data, there are honestly not many points for improvement in reporting. Perhaps the information could be consolidated better between the webpages and the CR and COC reports for easier access. Analyst 1: Quinn Chasan Analyst 2: Erin Franks E=Total Environmental Score, ESA=Environmental Sector Average Score, EI=Environmental Intent, ER=Environmental Reporting, EP=Environmental Performance, S=Total Social Score, SSA=Social Sector Average Score, SI=Social Intent, SR=Social Reporting, SP=Social Performance Comparison with sector averages Distribution of points Source of points E S 25 50 62 45 39 26 S 57% SSA 0 92 82 E 43% ES A The Merck Group EI 75 ER EP SI SR SP Environmental Intent Score Max Score % General Comment Accountability Question Category 4 4 100 Excellent Management 7 8 88 Excellent Policy 8 12 67 Good Vision 4 4 100 Excellent Environmental Reporting Question Category Score Max Score % General Comment Emissions to Air 27 49 55 Good Emissions to Water 4 21 19 Needs substantial improvement Energy 5 14 36 Needs improvement Management 10 21 48 Needs improvement Materials Usage 0 14 0 Needs substantial improvement Recycling 5 14 36 Needs improvement Waste 13 35 37 Needs improvement Water 5 7 71 Good Social Intent Question Category Score Max Score % General Comment Accountability 3 4 75 Excellent Management 9 10 90 Excellent Policy 6 6 100 Excellent Social Demographic 2 2 100 Excellent Vision 4 4 100 Excellent Social Reporting Question Category Score Max Score % General Comment Accountability 3 7 43 Needs improvement Human Rights 47 77 61 Good Management 7 7 100 Excellent Qualitative Social 28 56 50 Good Quantitative Social 22 49 45 Needs improvement www.roberts.cmc.edu 57 Drugs and Biotechnology Sectors F Toho Holdings 2011 Web Pages Toho Holdings In its 2011 web pages, Toho Holdings reports minimal information regarding its environmental and social performance. Reporting only a social visionary statement and an environmental visionary statement, it is clear that Toho Holdings has room to improve its reporting. Among others, including information on energy use, waste, and employee treatment would help Toho Holdings to start expanding its reporting. Analyst 1: Jordan Lieberman Analyst 2: Erin Franks E=Total Environmental Score, ESA=Environmental Sector Average Score, EI=Environmental Intent, ER=Environmental Reporting, EP=Environmental Performance, S=Total Social Score, SSA=Social Sector Average Score, SI=Social Intent, SR=Social Reporting, SP=Social Performance Comparison with sector averages Distribution of points Source of points E 4 4 ES A E 52% S S 48% SSA 0 25 50 EI 75 0 0 ER EP SI 0 0 SR SP Toho Holdings Environmental Intent Score Max Score % General Comment Accountability Question Category 0 4 0 Needs substantial improvement Management 0 8 0 Needs substantial improvement Policy 0 12 0 Needs substantial improvement Vision 1 4 25 Needs improvement Environmental Reporting Question Category Score Max Score % General Comment Emissions to Air 0 49 0 Needs substantial improvement Emissions to Water 0 21 0 Needs substantial improvement Energy 0 14 0 Needs substantial improvement Management 0 21 0 Needs substantial improvement Materials Usage 0 14 0 Needs substantial improvement Recycling 0 14 0 Needs substantial improvement Waste 0 35 0 Needs substantial improvement Water 0 7 0 Needs substantial improvement Social Intent Question Category Score Max Score % General Comment Accountability 0 4 0 Needs substantial improvement Management 0 10 0 Needs substantial improvement Policy 0 6 0 Needs substantial improvement Social Demographic 0 2 0 Needs substantial improvement Vision 1 4 25 Needs improvement Social Reporting Question Category Score Max Score % General Comment Accountability 0 7 0 Needs substantial improvement Human Rights 0 77 0 Needs substantial improvement Management 0 7 0 Needs substantial improvement Qualitative Social 0 56 0 Needs substantial improvement Quantitative Social 0 49 0 Needs substantial improvement www.roberts.cmc.edu 58 Drugs and Biotechnology Sectors C+ UCB 2009 Corporate Social Responsibility Report, 2011 Charter of Corporate Governance, and 2011 Web Pages UCB As explained in its CSR Report, UCB is continuously developing its reporting system and policies and has demonstrated its efforts by publishing its first Corporate Social Responsibility Report. In this report, the company does well in reporting baseline data and also defines clear objectives for the future. UCB still has room for improvement, however. The company would greatly enhance its score by expanding upon its internal measurements and reporting processes such as those within its policies, procedures, and guidance. More specifically, UCB should include a more robust list of Environment, Health and Safety measures. Analyst 1: Daniel Olmsted Analyst 2: Karen de Wolski E=Total Environmental Score, ESA=Environmental Sector Average Score, EI=Environmental Intent, ER=Environmental Reporting, EP=Environmental Performance, S=Total Social Score, SSA=Social Sector Average Score, SI=Social Intent, SR=Social Reporting, SP=Social Performance Comparison with sector averages Distribution of points Source of points E E 45% ES A S 62 46 S 55% SSA 0 25 50 31 26 11 6 EI 75 ER EP SI SR UCB SP Environmental Intent Score Max Score % General Comment Accountability Question Category 3 4 75 Excellent Management 3 8 38 Needs improvement Policy 6 12 50 Good Vision 1 4 25 Needs improvement Environmental Reporting Question Category Score Max Score % General Comment Emissions to Air 14 49 29 Needs improvement Emissions to Water 6 21 29 Needs improvement Energy 5 14 36 Needs improvement Management 0 21 0 Needs substantial improvement Materials Usage 0 14 0 Needs substantial improvement Recycling 0 14 0 Needs substantial improvement Waste 6 35 17 Needs substantial improvement Water 4 7 57 Good Social Intent Question Category Score Max Score % General Comment Accountability 4 4 100 Excellent Management 5 10 50 Good Policy 4 6 67 Good Social Demographic 0 2 0 Needs substantial improvement Vision 3 4 75 Excellent Social Reporting Question Category Score Max Score % General Comment Accountability 6 7 86 Excellent Human Rights 10 77 13 Needs substantial improvement Management 2 7 29 Needs improvement Qualitative Social 23 56 41 Needs improvement Quantitative Social 8 49 16 Needs substantial improvement www.roberts.cmc.edu 59 Drugs and Biotechnology Sectors Pharmaceuticals: Drugs and Biotechnology Environmental visionary statement Environmental management structure 5 -Discussion: includes a clear visionary statement expressing an organizational commitment to good environmental performance. -Initiatives/actions: include measures to fulfill that commitment. Discussion Pg# Discussion Initiatives/actions Initiatives Pg# Environmental impediments and challenges Initiatives/actions 6 Initiatives/actions 42 43 Initiatives/actions Discussion: of impediments and challenges faced by the organization in attempting to realize its social vision and commitments. Initiatives/actions: include measures taken to overcome them. Discussion Pg# Discussion Initiatives/actions 9 Initiatives/actions Initiatives/actions 45 21 -Discussion: of environmental expenditures. -Initiatives/actions: include detailed accounting of such expenditures. Discussion Pg# Discussion Initiatives/actions 4 Initiatives Pg# Third-party validation -Discussion: identifies the person specifically designated to answer questions about the report or sustainability issues. Investor relations or public relations contact representatives are not valid contacts for this question. -Initiatives/actions: to facilitate such contact, i.e. providing email address, phone number, or a link for feedback and questions. Discussion Pg# Discussion Initiatives/actions Initiatives Pg# Environmental accounting Initiatives Pg# Report contact person 16 -Discussion: of efforts to promote environmental education and awareness of employees, the general public, or children. -Initiatives/actions: taken to provide such education. Discussion Pg# Discussion -Discussion: includes a formal statement of the company's social policy or plan. -Initiatives/actions: include a description of how the policy is being implemented. Discussion Pg# Discussion Initiatives/actions Initiatives Pg# Environmental education Initiatives Pg# Social policy statement 23 -Discussion: of consultation and dialogue with stakeholders about the organization's environmental aspects or impacts. -Initiatives/actions: include identification of specific consultation activities. Discussion Pg# Discussion -Discussion: includes a formal statement of the organization's environmental policy or plan. -Initiatives/actions: include a description of how the policy is being implemented. Discussion Pg# Discussion Initiatives/actions Initiatives Pg# Stakeholder consultation Initiatives Pg# Environmental policy statement 51 -Discussion: of organizational structure or staffing for ensuring health and safety or social responsibility. -Initiatives/actions: include identification of the individuals currently holding the staff positions. Discussion Pg# Discussion Initiatives Pg# Social impediments and challenges Initiatives Pg# Health and safety, or social organizational structure -Discussion: includes a clear visionary statement expressing an organizational commitment to good social performance. -Initiatives/actions: include measures taken to fulfill that commitment. Discussion Pg# Discussion Initiatives/actions 20 -Discussion: includes a statement of adoption of ISO 14001 or other formal environmental management system. -Initiatives/actions: include information on the extent to which the system has been implemented. Discussion Pg# Discussion Initiatives Pg# Social visionary statement Initiatives Pg# Environmental management system -Discussion: of impediments and challenges faced by the organization in attempting to realize its environmental vision and commitments. -Initiatives/actions: include measures to overcome them. Discussion Pg# Discussion Initiatives/actions 19 -Discussion: of the organization's environmental management structure or staffing. -Initiatives/actions: include identification of individuals currently holding the staff positions. Discussion Pg# Discussion 54 -Discussion: of the value (or lack thereof) of third-party auditing or validation. -Initiatives/actions: include formal auditing or validation by a qualified external third-party source. Discussion Pg# Discussion Initiatives/actions Initiatives Pg# Initiatives Pg# Climate change/global warming 10 -Discussion: of the organization's position on climate change and/or global warming. -Initiatives/actions: include measures taken by the organization to decrease its contribution to climate change. Discussion Pg# Discussion Initiatives/actions www.roberts.cmc.edu 60 Initiatives Pg# Drugs and Biotechnology Sectors Pharmaceuticals: Drugs and Biotechnology Habitat/ecosystem conservation Workforce profile: age 11 -Discussion: of the organization's position on conserving natural ecosystems and habitat. -Initiatives/actions: taken to increase conservation of natural ecosystems either associated with or separate from the organization's business activities. Discussion Pg# Discussion Initiatives/actions Initiatives/actions Initiatives Pg# Biodiversity Initiatives/actions Initiatives Pg# Initiatives/actions Initiatives/actions Initiatives/actions 26 Sum of the energy used by the organization in all different forms, including electricity, fuel, natural gas and others. Discussion Pg#: Discussion Context Pg#: Context Initiatives Pg# Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous 17 Year Initiatives Pg# Workforce profile: gender Initiatives Pg# Energy used (total) -Discussion: of racial or ethnic distribution of workforce. -Initiatives/actions: taken to avoid racial or ethnic discrimination. Discussion Pg# Discussion Initiatives/actions 47 -Discussion: includes a formal organizational code of conduct or of ethical behavior. -Initiatives/actions: include measures to assure that the code of conduct is followed. Discussion Pg# Discussion 194 Workforce profile: ethnicities/race Initiatives Pg# Code of conduct or business ethics Green Chemistry is the design of chemical products and processes that reduce or eliminate the use and generation of hazardous substances. Whereas environmental chemistry is the chemistry of the natural environment, and of pollutant chemicals in nature, green chemistry seeks to reduce and prevent pollution at source. In 1990 the Pollution Prevention Act was passed. This act helped create a modus operandi for dealing with pollution in an original and innovative way. Discussion Pg# Discussion Initiatives/actions 82 -Discussion: of training, skills and learning programs appropriate to support employees' upward mobility. -Initiatives/actions: taken to implement such training. Discussion Pg# Discussion Initiatives Pg# Green Chemistry Initiatives Pg# Employee training for career development 49 -Discussion: or description of procedures to evaluate and select suppliers on their ability to meet the requirements of the company's social or environmental policy and principles. -Initiatives/actions: include measures to implement or assure such screening or selection. Discussion Pg# Discussion Initiatives/actions 53 -Discussion: of emergency preparedness programs to prepare employees or the public to cope with potential emergencies at the organization's facilities. -Initiatives/actions: include measures taken to implement such programs. Discussion Pg# Discussion Initiatives Pg# Supplier screening based on social or environmental performance/ supplier management Initiatives Pg# Emergency preparedness program 13 -Discussion: about preferential purchasing of eco-friendly (non-polluting, recycled, recyclable, etc.) products. -Initiatives/actions: taken to implement such purchasing. Discussion Pg# Discussion Initiatives/actions 80 -Discussion: of appropriate actions to accommodate employees with disabilities. -Initiatives/actions: taken to implement such accommodations. Discussion Pg# Discussion -Discussion: of the organization's position on biodiversity. -Initiatives/actions: taken by to the organization to foster biodiversity. Discussion Pg# Discussion Green purchasing Initiatives Pg# Employment for individuals with disabilities 12 Initiatives/actions 52 -Discussion: of age distribution of workforce. -Initiatives/actions: include measures taken to avoid age discrimination or to encourage a balanced age structure. Discussion Pg# Discussion Data Values Goal Pg#: Quant Pg#: Prev Quan Pg#: Improve Pg# Units 18 -Discussion: of gender distribution of workforce. -Initiatives/actions: taken to avoid gender discrimination and achieve appropriate balance Discussion Pg# Discussion Initiatives/actions Initiatives Pg# www.roberts.cmc.edu 61 Drugs and Biotechnology Sectors Pharmaceuticals: Drugs and Biotechnology Energy used (renewable) Waste (solid) disposed of 27 Energy used from renewable sources such as wind, solar, hydroelectric, or other renewable sources. Discussion Pg#: Discussion Context Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous Year Data Values Context Pg#: Goal Pg#: Context Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous Quant Pg#: Prev Quan Pg#: Improve Pg# Units Year Waste recycled: solid waste Sum of all solid waste recycled, including hazardous waste. Discussion Pg#: Discussion Year Data Values Quant Pg#: Prev Quan Pg#: Improve Pg# Units 35 Sum of all hazardous materials remaining after production, irrespective of final disposition. Hazardous wastes include items identified as TRI, PRTR, HAP (Hazardous Air Pollutants), and similar indices, and may include mercury or lead. Depending on the nationality of the organization, this could be labeled "TRI" (Toxic Release Inventory,) "substance releases" , or something else. Discussion Pg#: Discussion Context Pg#: Goal Pg#: Quant Pg#: Prev Quan Pg#: Context Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous Improve Pg# Units Year Waste (office) recycled Data Values Context Pg#: Goal Pg#: Waste (hazardous) produced 30 Context Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous 34 Includes solid hazardous and non-hazardous waste landfilled, incinerated, or transferred. Discussion Pg#: Discussion Data Values Context Pg#: Goal Pg#: Quant Pg#: Prev Quan Pg#: Improve Pg# Units 32 Office recycling of paper, cardboard, metal, or plastic. Discussion Context Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous Year Data Values Discussion Pg#: Context Pg#: Waste (hazardous) released to the environment Goal Pg#: Prev Quan Pg#: Improve Pg# Units Context Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous Year www.roberts.cmc.edu 37 Amounts of hazardous materials released into the environment, total (TRI, PRTR, HAP (Hazardous Air Pollutants), and similar indices), may include mercury or lead. Depending on the nationality of the organization, this could be labeled "TRI" (Toxic Release Inventory), "substance releases," or something else. Discussion Pg#: Discussion Quant Pg#: 62 Data Values Context Pg#: Goal Pg#: Quant Pg#: Prev Quan Pg#: Improve Pg# Units Drugs and Biotechnology Sectors Pharmaceuticals: Drugs and Biotechnology Waste: Packaging materials Water used 109 The amount of waste materials specified as packaging materials by the organization, and not reused or recycled. Discussion Pg#: Discussion Context Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous Year Data Values Discussion Context Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous Context Pg#: Goal Pg#: Quant Pg#: Prev Quan Pg#: Improve Pg# Year Context Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous Improve Pg# Units Discussion Context Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous Quant Pg#: Prev Quan Pg#: Improve Pg# 110 Year Data Values Discussion Pg#: Context Pg#: Goal Pg#: Quant Pg#: Prev Quan Pg#: Improve Pg# Units Units Greenhouse gases (or CO2 equivalents), total 148 Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous 83 The sum of all greenhouse gases released, which could include CO2, CH4 (methane), N2O (nitrous oxide), SF6 (Sulphur hexafluoride), PFCs (Perfluorocarbons) and HFCs (hydrofluorocarbons). Discussion Pg#: Discussion Materials such as cardboard, plastics, or wood, used to package any goods sold or delivered to a disributor or an end user. Likely to be specifically referred to as "packaging materials". Discussion Pg#: Discussion Context Pg#: Context Data Values Goal Pg#: Quant Pg#: Prev Quan Pg#: Amount of waste water released into natural waters. Context Pg#: Goal Pg#: Materials used: Non-returnable packaging Year Context Pg#: Waste water released to natural water bodies 145 Description and quantification of hazardous materials use. Discussion Pg#: Discussion Data Values Data Values Discussion Pg#: Units Hazardous materials usage Year 29 Sum of all water used during operations. Context Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous Goal Pg#: Quant Pg#: Prev Quan Pg#: Improve Pg# Year Data Values Context Pg#: Goal Pg#: Quant Pg#: Prev Quan Pg#: Improve Pg# Units Units www.roberts.cmc.edu 63 Drugs and Biotechnology Sectors Pharmaceuticals: Drugs and Biotechnology Volatile organic compounds (VOCs) Nitrogen oxides (NOx) 114 Total emissions of volatile organic compounds, airborn chemicals most often released during the painting process. Discussion Pg#: Discussion Context Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous Year Data Values Discussion Context Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous Context Pg#: Goal Pg#: Quant Pg#: Prev Quan Pg#: Improve Pg# Year Discussion Context Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous Discussion Pg#: Context Pg#: Goal Pg#: Improve Pg# Units Quant Pg#: Improve Pg# Units 119 Quant Pg#: Prev Quan Pg#: Improve Pg# Units 127 Emissions of all sulfur oxides, including sulfur dioxide (SO2). Discussion Pg#: Discussion Context Pg#: Context Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous Goal Pg#: Quant Pg#: Prev Quan Pg#: Improve Pg# Units www.roberts.cmc.edu Data Values Context Pg#: Goal Pg#: Sulfur oxides (SOx) Total ozone-depleting substances include CFCs (Class I); and halons, carbon tetrachloride, methyl chloroform, and HCFCs (Class II), not a CO2 emission. Discussion Pg#: Discussion Context Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous 123 Context Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous Prev Quan Pg#: Ozone depleting substances from refrigerant Data Values Goal Pg#: Quant Pg#: Prev Quan Pg#: "Particulate matter" usually refers to all material emitted to air smaller than 10 microns in diameter (PM10). Smaller, more toxic material such as PM 2.5, smaller than 2.5 microns, may also be called out. Discussion Pg#: Discussion Year Year Context Pg#: Particulate matter (dust) 118 Carbon Monoxide (CO) released. Data Values Data Values Discussion Pg#: Units Carbon monoxide (CO) Year 121 Emissions of all nitrogen oxides to air. Year 64 Data Values Context Pg#: Goal Pg#: Quant Pg#: Prev Quan Pg#: Improve Pg# Units Drugs and Biotechnology Sectors Pharmaceuticals: Drugs and Biotechnology Suspended solids, total (TSS) Employee turnover rate 129 A measure of the amount of solids in wastewater. TSS can include a wide variety of material, such as silt, decaying plant and animal matter, industrial wastes, and sewage. Discussion Pg#: Discussion Context Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous Year Data Values 3 Annual employee turnover rate. Discussion Context Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous Context Pg#: Goal Pg#: Quant Pg#: Prev Quan Pg#: Year Improve Pg# Data Values Discussion Pg#: Context Pg#: Goal Pg#: Quant Pg#: Prev Quan Pg#: Improve Pg# Units Units Recordable incident/accident rate Chemical Oxygen Demand (COD) Number of employee incidents or accidents, such as: “total case incident rate,” “incident rate,” or "accident rate." Discussion Pg#: Discussion Context Pg#: Context 130 Measure the amount of organic compounds in water. Most applications of COD determine the amount of organic pollutants found in surface water (e.g. lakes and rivers). Compare with BOD, COD is less specific since it measures total organic levels rather than simply levels of biologically active organic matter. Discussion Pg#: Discussion Context Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous Year Data Values 74 Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous Context Pg#: Goal Pg#: Year Quant Pg#: Prev Quan Pg#: Data Values Goal Pg#: Quant Pg#: Prev Quan Pg#: Improve Pg# Units Improve Pg# Units Lost workday case rate Biochemical Oxygen Demand (BOD) 131 Context Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous BOD is a measure of the concentration of biodegradable organic matter present in water and refers either wastwater effluent or receiving waters. Discussion Pg#: Discussion Context Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous Year Data Values 75 Number of employee injuries or illnesses that resulted in one or more lost workdays. Discussion Pg#: Discussion Context Pg#: Goal Pg#: Year Quant Pg#: Data Values Context Pg#: Goal Pg#: Quant Pg#: Prev Quan Pg#: Improve Pg# Units Prev Quan Pg#: Improve Pg# Units www.roberts.cmc.edu 65 Drugs and Biotechnology Sectors Pharmaceuticals: Drugs and Biotechnology Training, hours per number of employees Environmental expenses and investments 157 The number of training hours/number of staff. Discussion Context Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous Year Data Values Discussion Pg#: Context Pg#: Context Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous Goal Pg#: Quant Pg#: Prev Quan Pg#: Improve Pg# Units Year Social community investment 81 Year Data Values Quant Pg#: Prev Quan Pg#: Improve Pg# Year Data Values Data Values Context Pg#: Goal Pg#: Quant Pg#: Prev Quan Pg#: Improve Pg# Units 76 Number of health and safety citations or notices of violation. If it is stated that there were none, check lines 1,2,3, 4, and 6. Discussion Pg#: Discussion Context Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous Goal Pg#: Quant Pg#: Prev Quan Pg#: Improve Pg# Units Year www.roberts.cmc.edu 40 Health and safety citations 38 Notices of violation (NOVs) for environmental infractions. Discussion Pg#: Discussion Context Pg#: Context Year Units Context Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous Units Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous Quant Pg#: Prev Quan Pg#: Improve Pg# Government imposed fines for environmental infractions. Discussion Pg#: Discussion Goal Pg#: Notices of violation (environmental) Data Values Context Pg#: Goal Pg#: Fines (environmental) Amount of money spent on community outreach, including education grants, donations, and relief effort funds. Discussion Pg#: Discussion Context Pg#: Context Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous 39 An accounting of money spent or invested specifically to decrease environmental damage or to benefit the environment. Discussion Pg#: Discussion 66 Data Values Context Pg#: Goal Pg#: Quant Pg#: Prev Quan Pg#: Improve Pg# Units Drugs and Biotechnology Sectors Pharmaceuticals: Drugs and Biotechnology Health and safety fines Community development 77 Fines levied against a company for health and safety violations. Discussion Pg#: Discussion Context Goal Current Period Quantitative Data Previous Quantitative Data Improvement Over Previous Year Data Values 66 Efforts to participate in social activities that improve the quality of life of communities including that of indigenous people, where the organization operates. Discussion Pg#: Discussion Context Pg#: Initiative Pg#: Initiatives/Action Context Pg#: Context Improvement Over Previous Improve Pg#: Goal Pg#: Quant Pg#: Prev Quan Pg#: Improve Pg# Community education Units 68 Efforts to support education in the communities where the company is located. Discussion Pg#: Discussion Initiative Pg#: Initiatives/Action Context Pg#: Context Improvement Over Previous Improve Pg#: Disclosure of clinical trials Animal testing standards 192 Codes and standards for preventing cruelty and abuse in animal testing. Industry specific, mainly for pharmaceuticals. Discussion Pg#: Discussion Initiative Pg#: Initiatives/Action Efforts to make results from late-stage clinical trials available to the public, even if they reveal unfavorable information about a drug. Discussion Pg#: Discussion Initiative Pg#: Initiatives/Action Context Pg#: Context Improvement Over Previous Improve Pg#: Context Pg#: Context Improvement Over Previous Improve Pg#: Women in management Access to health care in low income communities 2 Discussion Pg#: Initiative Pg#: Context Pg#: Context Pg#: Context Improvement Over Previous Improve Pg#: Improve Pg#: Employee satisfaction surveys Efforts on neglected diseases 67 Surveys to monitor employee satisfaction. Discussion Initiatives/Action Context Improvement Over Previous Initiative Pg#: Context Pg#: Improve Pg#: Context Pg#: Context Improvement Over Previous Improve Pg#: 70 Sexual harassment Efforts to provide a safe and healthy working environment at all sites. Discussion Pg#: Discussion Adoption of Policy Action to Reinforce Policy Monitoring Quant. Indication of Compliance 72 Policy Adopt Pg#: Initiative Pg#: Monitoring Pg#: Qty Perf Pg#: Political contributions Efforts to promote employee volunteerism in social or environmental projects. Discussion Pg#: Discussion 7 Policy about political contributions. Initiative Pg#: Initiatives/Action Context Pg#: Context Improvement Over Previous Improve Pg#: www.roberts.cmc.edu 1 Rejection of any form of sexual harassment. Initiative Pg#: Initiatives/Action Context Pg#: Context Improvement Over Previous Improve Pg#: Employee volunteerism 193 Efforts to invest in drug research and development for the world’s most neglected diseases that are potentially yield minimal return for the pharmaceuticals industry. Discussion Pg#: Discussion Initiative Pg#: Initiatives/Action Discussion Pg#: Occupational health and safety protection 154 Efforts to provide access to affordable health care in low income communities and/or developing countries. Specific to pharmaceuticals. Discussion Pg#: Discussion Initiative Pg#: Initiatives/Action Relative numbers of women in management. Discussion Initiatives/Action Context Improvement Over Previous 153 Adoption of Policy Action to Reinforce Policy Monitoring Quant. Indication of Compliance 67 Policy Adopt Pg#: Initiative Pg#: Monitoring Pg#: Qty Perf Pg#: Drugs and Biotechnology Sectors Pharmaceuticals: Drugs and Biotechnology Bribery Elimination of all forms of forced and compulsory labor 8 Rejection of bribery Adoption of Policy Action to Reinforce Policy Monitoring Quant. Indication of Compliance Policy Adopt Pg#: Adoption of Policy Action to Reinforce Policy Monitoring Quant. Indication of Compliance Initiative Pg#: Monitoring Pg#: Qty Perf Pg#: Anti-corruption practices 58 Initiative Pg#: Monitoring Pg#: Qty Perf Pg#: 65 Rejection of illegal child labor by the company or its affiliates. Adoption of Policy Action to Reinforce Policy Monitoring Quant. Indication of Compliance Policy Adopt Pg#: Initiative Pg#: Monitoring Pg#: Qty Perf Pg#: Fair compensation of employees Policy Adopt Pg#: Effective abolition of child labor Efforts to uphold the highest standards of business ethics and integrity. May be found under a Code of Conduct. Adoption of Policy Action to Reinforce Policy Monitoring Quant. Indication of Compliance 63 Assurance that all employees enter employment with the company of their own free will, not by compulsion. Policy Adopt Pg#: Initiative Pg#: Monitoring Pg#: Qty Perf Pg#: 62 Assurance that wages paid meet or exceed legal or industry minimum standard. Adoption of Policy Action to Reinforce Policy Monitoring Quant. Indication of Compliance Policy Adopt Pg#: Initiative Pg#: Monitoring Pg#: Qty Perf Pg#: Reasonable working hours 64 Compliance with applicable laws and industry standards on working hours, including overtime. Adoption of Policy Action to Reinforce Policy Monitoring Quant. Indication of Compliance Policy Adopt Pg#: Initiative Pg#: Monitoring Pg#: Qty Perf Pg#: Degrading treatment or punishment of employees 59 Commitment to oppose any corporal/hard labor punishment, mental/physical coercion, or verbal abuse. Adoption of Policy Action to Reinforce Policy Monitoring Quant. Indication of Compliance Policy Adopt Pg#: Initiative Pg#: Monitoring Pg#: Qty Perf Pg#: Elimination of discrimination in respect to employment and occupation 60 Commitment not to engage in any kind of discrimination based on ethnicity, caste, religion, disability, sex, age, sexual orientation, union membership, or political affiliation in hiring practices or employee treatment. Adoption of Policy Action to Reinforce Policy Monitoring Quant. Indication of Compliance Policy Adopt Pg#: Initiative Pg#: Monitoring Pg#: Qty Perf Pg#: Free association and collective bargaining of employees 61 Efforts to respect the right of employees to form and join trade unions of their choice and to bargain collectively. Adoption of Policy Action to Reinforce Policy Monitoring Quant. Indication of Compliance www.roberts.cmc.edu Policy Adopt Pg#: Initiative Pg#: Monitoring Pg#: Qty Perf Pg#: 68 Drugs and Biotechnology Sectors McKesson, Cardinal Health, AmerisourceBergen, Johnson & J o h n s o n , P fi z e r , R o c h e G r o u p , GlaxoSmithKline, Novartis, Sanofi-Aventis, AstraZeneca, Abbott Laboratories, Merck & Co, Eli Lilly, Bristol-Myers Squibb, Suzuken, Takeda Pharmaceutical, Amgen, Teva Pharmaceutical Inds, The Merck Group, Astellas Pharma, Novo Nordisk, Daiichi Sankyo, Toho Holdings, EISAI, Gilead Sciences, Mylan Laboratories, Genzyme, Allergan, Biogen Idec Inc., a n d U C B Roberts Environmental Center The Roberts Environmental Center is a research institute at Claremont McKenna College, endowed by George R. Roberts, Founding Partner, Kohlberg Kravis Roberts & Co. The Center is managed by faculty and staff, and its research, including the material in this report, is done by students at the Claremont Colleges. Claremont McKenna College Claremont McKenna College, a member of the Claremont Colleges, is a highly selective, independent, coeducational, residential, undergraduate liberal arts college with a curricular emphasis on economics, government, and public affairs. The Claremont Colleges The Claremont Colleges form a consortium of five undergraduate liberal arts colleges and two graduate institutions based on the Oxford/Cambridge model. The consortium offers students diverse opportunities and resources typically found only at much larger universities. The consortium members include Claremont McKenna College, Harvey Mudd College, Pitzer College, Pomona College, Scripps College, Keck Graduate Institute of Applied Life Sciences, and the Clremont Graduate University which—includes the Peter F. Drucker and Masatoshi Ito Graduate School of Management. Contact Information Dr. J. Emil Morhardt, Director, Phone: 909-621-8190, email: [email protected] Elgeritte Adidjaja, Research Fellow, Phone: 909-621-8698, email: [email protected] Roberts Environmental Center, Claremont McKenna College, 925 N. Mills Avenue, Claremont, CA 91711-5916, USA.
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