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ESGBERT 27

The process involves engaging with external experts, scenario modelling and connecting to existing interrelated risk mitigation programmes.

Metrics and targets We are currently in the process of determining what metrics and targets are appropriate to assess our climate-related risks and opportunities to measure our impact on the environment.

Monitoring and minimising our environmental impact Climate impact identification and materiality assessment We are undertaking an assessment of the material climate-related risks and opportunities that have the potential to impact our business.

Impacts already identified on our existing risk register.

Any further work to determine financial impacts will feed into future materiality assessments.

The scenarios have been used to understand how the material climate-related risks and opportunities could differ in the future at a high level, and will be used to model the business impacts of all material climate-related risks and opportunities over different time horizons to better understand the financial impacts under each scenario.

Early, decisive action by society to reduce global emissions.

• Actions sufficient to limit global warming to well-below in line with the Paris Agreement.

Delay in the policy response needed to reduce global emissions.

Carbon Credentials Energy Services Ltd (Carbon Intelligence) has been contracted by Hikma Pharmaceuticals (Hikma) for the independent third-party verification of direct and indirect carbon dioxide equivalent emissions (CO2e) and accounts to a reasonable level of assurance.

Scope • Combustion of gaseous fuels (natural gas, diesel, petrol & LPG) • Fugitive refrigerant gases Scope 2 Emissions • Purchased electricity consumption (location & market based) Objectives The objectives of this verification exercise were, by review of objective evidence, to confirm whether any evidence existed that the GHG emissions as declared in the organisation’s GHG assertion were not: accurate, complete, consistent, transparent and free of material error or omission in accordance with the criteria outlined below.

Guidance: An Amendment to the GHG Protocol Corporate Standard ii.

We conducted our verification of the GHG assertion of Hikma, which included assessment of the company GHG information system and monitoring and reporting methodology.

This statement shall be interpreted with the GHG assertion of Hikma as a whole.

Carbon Intelligence’s approach is risk-based, drawing on an understanding of the risks associated with calculating GHG emission information and the controls in place to mitigate these risks.

Our examination included assessment, on a limited sample basis, of evidence relevant to the reporting of emission information.

It is our opinion that Hikma has established appropriate systems for the collection, aggregation and analysis of quantitative data for determination of these GHG emissions for the stated period and boundaries.

Based on our work, Carbon Intelligence considers that material GHG sources are appropriately identified and reported on.

On behalf of Carbon Credentials Energy Services Ltd No member of the verification team has a business relationship with Hikma Pharmaceuticals, its Directors or Managers beyond that required of this assignment.

p Principle 7 Businesses should support a precautionary approach to environmental challenges.

p Principle 8 Businesses should undertake initiatives to promote greater environmental responsibility.

No significant changes during the reporting year 102-12 List of externally-developed economic, environmental and social charters, principles, etc.

Promoting diversity and inclusion At Teva, we pride ourselves on getting it done together.

Conducting animal research responsibly For more than a century, Teva has been dedicated to developing medicines to improve people’s lives.

we work to continuously improve the impact of our manufacturing and daily operations on the environment.

we implement measures to avoid, reduce or control pollution and promote responsible and efficient use of energy and natural resources across our company and supply chain.

six hospitals in the UK, with hopes to expand the initiative and continue to reduce the environmental impact of inhalers.

of light and heat passing through the windows, which reduces energy consumption during summer — Has two stratified tanks that allow recovery of energy for cooling and heating systems — Uses 33 Teva 2019 ESG Progress Report | Leading a Responsible Business https://letstalkrespiratory.com/about-teva/ Teva’s EHS Excellence Awards recognize initiatives across the company that drive sustained improvements in EHS systems, processes or performance and promote a safe and responsible culture.

We installed a biomass boiler at one of our sites in was only operating at 50% capacity.

This allowed us to decommission the heavy-fuel oil boiler, maximizing the efficiency of our existing boiler and using biofuel to generate steam across our site.

Our Goa, India site also undertook a project to reduce waste, dispose of hazardous waste through environmentally-friendly and economical processes and convert waste to energy—with the goal of becoming a zero-to-landfill site.

Each year, the campus disposed of waste—70% through incineration and 30% through landfilling.

That changed in June we began transferring hazardous waste to the cement industry to be co-processed in a cement kiln, reducing the amount of fossil fuel used and CO2 emissions per ton of cement produced, avoiding the use of 120 tons of coal in 2018.

This solution supported GHG reductions and Teva’s waste reduction activities.

We support the precautionary approach introduced by the United Nations in Principle Declaration on Environment and Development and act to protect against environmental degradation where full scientific certainty does not exist.

Environmental Sustainability 306-3 Significant Spills We centrally track and monitor environmental incidents (spills and releases) across our operations and in 2019 experienced 20 reportable events, compared with 44 in 2018 and 206 in 2017.

None of the resulted in a material environmental impact, harm to individuals, or a significant fine or penalty.

MWH/employee 302-3: Energy intensity 54 Teva 2019 ESG Progress Report | Disclosures 303-1: Interactions with water as a shared resource Access to clean and reliable water supplies is essential to Teva’s continued business.

The majority of water we consume at our manufacturing facilities is during active pharmaceutical ingredient (API) and medicine production, with a significant proportion of this associated with the utilities and auxiliary equipment needed to create the right production environments.

Most of the water from our facilities are discharged to municipal wastewater networks, with some of this water first receiving onsite treatment to meet wastewater quality parameters.

Efforts are currently being focused on performing water balances at these facilities to guide what steps can be taken to reduce our impact there.

As part of our commitment to being a responsible steward of water, particularly in waterscarce areas, Teva made its first-ever (partial) CDP Water Security submission in 2019.

Going above and beyond regulatory requirements, as part of Teva’s PiE assessment program, including those related to AMR, where Teva identifies Predicted Environmental Concentrations (PEC) above those of the published Predicted No-Effect Concentration (PNEC), Teva will implement improvement measures to reduce discharge levels below the PNEC.

2017 and 2018 GHG emissions data have been restated following verification of our emissions for these two years, and adjusted for plant closures and divestments.

GHG data for these two years, therefore, represent verified GHG emissions for operations in line with their actual periods of activity during this period.

In without further action required, with five Notices of Violation received as a result of environmental inspections.

• Occupational disease is defined as disease arising from an employee’s work situation or activity, specifically associated with the nature of the work, causing lost workdays or reassignment.

The United Nations Global Compact (UNGC) is a strategic policy initiative that encourages companies around the world to adhere to human rights, labor standards, environmental protection and anti-corruption.

| P A G E Elanco Animal Health Incorporated (NYSE: ELAN) is a global animal health company that develops products and knowledge services to prevent and treat disease in food animals and pets in more than 90 countries.

To support our strategy of innovation, we must have a culture of diversity and inclusion (D&I)—one in which everyone can bring diverse ideas, perspectives, and experiences to bear in the pursuit of our purpose.

It focuses on three areas: health systems; 2) Programs—enhancing access to Lilly medicines; and 3) Pipeline—finding molecules for diseases that disproportionately affect people in resource-limited settings.

MANAGING OUR ENVIRONMENTAL IMPACTS Lilly is committed to continually reducing our environmental footprint and to publicly reporting progress toward our goals.

In (formerly Carbon Disclosure Project) score of A- on climate change, which is considered leadership level, and we received a B on water stewardship.

As of the end of goals: achieving a 20 percent improvement in our waste efficiency, and a 15 percent reduction in phosphorous emissions in wastewater.

Transitioning our testing will lessen our impacts on the wild crab population, reducing our dependence on an increasingly at-risk species that is a vital part of many food webs, including for endangered and threatened birds.

Since the program launched, employees in over have given more than 1 million hours and created a lasting legacy by completing thousands of projects— from assembling cancer-care packages for patients to beautifying neighborhoods by planting thousands of trees.

In September an initial public offering (IPO) of Elanco Animal Health Incorporated (NYSE: ELAN), thereby making it an independently traded company.

Elanco, previously a division of Lilly, is a global animal health company that develops products and knowledge services to prevent and treat disease in food animals and pets.

ERM Certification and Verification Services provided independent, third-party verification on selected environmental data and progress against selected goals as described in the assurance statement.

For example, following guidance from the World Resources Institute, we report progress toward greenhouse gas emissions goals on an adjusted basis accounting for mergers, acquisitions, and divestitures as appropriate, to ensure comparability, unless stated otherwise.

This includes our interactions to promote strong health, safety, and environment (HSE) practices with suppliers who provide us materials for research and development, as well as with the contract manufacturers who help make our medicines and other pharmaceutical products.

Lilly has made considerable investments in its packaging operations, distribution centers, and IT infrastructure to support this initiative, including new technology, which impacts all of our packaging lines around the world.

Lilly medicines Pipeline - Discovering new medicines and exploring our current portfolio and shelved assets to find new indications for diseases that disproportionately affect people in resource-limited settings Lilly has formed a steering committee to manage progress toward the 30x30 goal.

Under new leadership and with increased strategic focus in on developing collaborations with a variety of partners to expand access to quality care for people living in resource-limited settings.

Lilly Global Health Partnership Focus Areas Working with expert partners, the Lilly Global Health Partnership helps people living in limited-resource settings, with a focus on five countries.

In addition, community members will help identify and propose solutions for the cultural, social, environmental, economic, and policy barriers that increase the risk for diabetes, such as the lack of healthy food options and public spaces for exercise.

When it struck, Hurricane Maria exposed preexisting challenges in Puerto Rico—and created new ones—further limiting access to quality healthcare services, medications, healthy food, and clean drinking water in an already overburdened public sector.

R I C O EMPLOYEE VOLUNTEERS HOURS SERVED Programs Through Lilly 30x30, we are strengthening existing programs and developing new approaches that help people in resource-limited settings get greater access to Lilly products and services.

In this section, we discuss our efforts to provide employees with a safe, supportive, and rewarding work environment, and to offer fair compensation, training, and career development.

We also underscore our efforts to promote diversity and inclusion within our company, as a reflection of our values and a key driver of business success and growth.

We strive to create an environment built on mutual respect, openness, and individual integrity.

A key factor in creating a positive, dynamic environment for our employees—and in delivering results for our customers—is our focus on diversity and inclusion (D&I).

At Lilly, employee safety and well-being are managed by our Health, Safety, and Environment (HSE) team.

Embracing diversity at Lilly means understanding, respecting, and valuing differences, including race, religion, sexual orientation, gender identity, disability status, work style, national origin, and age.

Our commitment to diversity spans not only our workplace, but also shapes our understanding of the marketplace, and our relationships with our suppliers.

We do this with a commitment to diversity and inclusion because we recognize that every individual is unique.

For example, some build plans that are related to gender, provincial, generational, and/or disability diversity.

And our Code of Business Conduct, The Red Book, also summarizes our approach to creating an inclusive, nondiscriminatory environment.

During its last audit of Lilly in supplier diversity, which is the highest recognition possible.

VETERAN, LGBTQ AND SMALL BUSINESSES THROUGH ITS SUPPLIER DIVERSITY PROGRAM.

I O N Making medicines that help people live longer, healthier, more active lives requires the use of valuable resources, such as energy, water, and raw materials.

At Lilly, we believe that promoting a healthy environment, maintaining a safe workplace, and operating responsibly and in an environmentally sustainable manner are linked to our business and supported by our mission and values.

This section covers the broad range of our HSE activities, from our approach and management systems, to our work addressing environmental and safety issues across our value chain, to performance data and examples demonstrating our progress.

In 2018, Lilly scored a rating of A- on climate change and B on water from CDP, formerly the Carbon Disclosure Project.

D U C T L I F E C Y C L E Research and Development We consider environmental factors from the earliest stages of design and development.

We use the of green chemistry, environmental risk assessments, packaging manufacturing reviews, and an Environmental Development Review process to evaluate potential environmental impacts during the scale-up of human health pharmaceutical production to manufacturing levels. Materials and Natural Resources Our stakeholders, including customers, governments, and suppliers worldwide, are increasingly focused on the materials and chemicals used to make products.

We have a chemical management program and work to reduce our use of materials, water, and other natural resources when possible.

Manufacturing Our HSE committee oversees sustainability performance and compliance with applicable HSE regulations, policies, procedures, and standards while ensuring we continually measure, report, and reduce Lilly’s environmental impacts associated with our own as well as contract manufacturing organizations.

Materials, water, and energy, HSE management system and standards Product End-of-Life Due to patient safety considerations and medicine regulations, reuse and recycling are not applicable to our products.

We are working with stakeholders to ensure cost-effective approaches are available for product end-of-life disposal that balance environmental protection, patient privacy, legal compliance, and security.

Our green chemistry initiatives include developing manufacturing processes that use less- toxic chemical alternatives where feasible.

This process identifies and addresses potential impacts arising from manufacturing, suggests process improvements, and facilitates learning as new medicines transition from the laboratory to the manufacturing facility.

high waste-to-mass ratios, and requires solvent- intensive purification systems.

Yet Jay has helped Lilly to forge a new path, and in the process, he has helped to protect a threatened marine species and the larger ecosystem that depends on it.

Water and raw materials used in manufacture must be tested as well.

To satisfy demand, LAL manufacturers capture, bleed, and release an estimated seaboard of the United States.

Compounding adversities for the horseshoe crab are decades of overharvesting for use as eel and whelk bait, and fertilizer, not to mention devastating habitat loss linked to the commercial development of seashore communities and climate change impacts, including more intense storms and rising sea levels that threaten their spawning grounds.

The majority of Lilly’s direct environmental impacts are from the manufacturing of medicines.

Lilly launched an initial public offering (IPO) of Elanco Animal Health Incorporated in September Elanco in March 2019, making it an independent, publicly traded company.

Beginning in will adjust our environmental performance data baseline calculations to reflect the Elanco divestiture.