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The project will improve our resiliency to severe weather events and our environmental performance.

ENERGY USE AND GREENHOUSE GAS EMISSIONS Lilly set aggressive targets for improving energy efficiency and thereby reducing our GHG emissions.

In addition to our Scope efforts, we monitor several categories of Scope 3 GHG emissions and are committed to expanding the scope and quality of related data and disclosures.

In CDP, formerly known as the Carbon Disclosure Project, recognized our efforts with a score of A-, which is considered leadership level. Goals and Trends in 2018 Lilly’s 2020 goal is to improve both our energy efficiency and Scope 1 and Scope 2 GHG emissions intensity, measured per unit of site space, by 20 percent as compared to our 2012 baseline.

Through decreased our emissions intensity by 12.7 percent compared to our 2012 baseline.

Total energy consumption was flat compared to improved by 0.7 percent.

Since largest energy-consuming sites—representing nearly 88 percent of our total energy consumption—increased production, in turn increasing their overall energy use per square foot of space.

This project is expected to result in roughly $and approximately 15 to 20 percent reduction in GHG emissions for our Puerto Rico facility.

Renewable Energy We will continue to evaluate further use of renewable energy to diversify our energy sources, decrease our GHG emissions, and lessen our energy use intensity over time.

We are members of the Rocky Mountain Institute’s Business Renewables Center and are currently evaluating the feasibility of incorporating more renewable energy sources.

WATER USE AND WASTEWATER Manufacturing operations account for the majority of the water used by Lilly.

In CDP’s water program, above the average for Biotech, Health Care and Pharmaceutical sector rankings.

In phosphorus emissions in our wastewater discharge by 15 percent by 2020, as compared to our 2014 baseline.

In our total wastewater phosphorus emissions declined to approximately 83 metric tonnes, a 34.4 percent decrease from 2014.

As a result, we are setting a stretch goal to reduce an additional of phosphorus emissions by 2020 using 2018 as the new baseline year.

Lilly generates both nonhazardous and hazardous waste from its manufacturing processes.

In improvement in waste efficiency by 2020, as compared to our 2012 baseline.

We also aim to increase our recycling rate above below 10 percent of our total waste generated.

With regard to progress toward our goal, we have successfully surpassed our improvement target, as our waste efficiency improved by 34 percent between 2012 and the end of 2018.

Our recycling rate increased in 47 percent in 2012, and we sent 21 percent of our waste to landfills, compared to 28 percent waste sent to landfill in 2012.

As we have successfully achieved the waste efficiency aspect of our we will focus primarily on achieving our recycling and waste-to-landfill targets.

OUR OPERATIONS We established the Energy, Waste and Water Reduction Fund in overall environmental impacts.

These projects collectively save more than one trillion BTUs of energy annually, avoiding more than tonnes of GHG emissions each year, measured as carbon dioxide equivalents (CO2e).

emission factors for landfilled and land-applied waste, and assumes transportation related emissions only for certain land-applied organic waste types.

6 Data includes energy from combustion of coal, fuel oil, natural gas, and liquid propane. 7 Data includes energy from purchased electricity, steam, and chilled water.

regulatory actions or requirements (e.g., remediation activities where the water is not used for another purpose).

intake not included in other water intake subcategories.

that resulted in damage to the environment (i.e., human health, aquatic life, or wildlife) or a material event requiring reporting to the U.S. Securities and Exchange Commission.

This data includes that of Lilly’s former subsidiary, Elanco Animal Health, including the period immediately following Elanco’s IPO, approximately the fourth quarter of 2018.

A G E Supply Chain We rely on our suppliers—including those who supply us with materials for research and development, active pharmaceutical ingredients (APIs), and other contract manufacturers—to ensure the availability of our human and animal medicines.

The PSCI Principles provide our industry with consistent supplier performance standards in the areas of ethics, labor, health and safety, the environment, and related management systems.

Additionally, we have achieved GHG emission reductions by changing the shipping mode for some of our pharmaceutical products from air to ocean.

Another benefit of ocean shipping is an overall reduction in packaging used because less protective packaging is required during transport.

Pharmaceuticals in the Environment (PiE) After they are used to improve human and animal health, medicines enter our natural environment through the normal biological processes of waste elimination.

Reports such as the World Health Organization’s Pharmaceuticals in Drinking Water (publications following an extensive, three-year joint study by the U.S. Environmental Protection Agency and U.S. Geological Survey on the presence of contaminants in drinking water and surface water have concluded that the concentrations of pharmaceuticals in drinking water are unlikely to have a direct impact on human health and aquatic life.

residues in water, in collaboration with the U.S.

About Elanco Animal Health In September offering of Elanco, thereby making it an independently traded company.

Elanco Animal Health has updated its commitment to fighting antimicrobial resistance, which includes promoting responsible antibiotic use practices and policies while developing alternatives to medically important antibiotics (a subset of which include critically important antibiotics to human health).

We work to foster a healthy, vibrant work environment, while also supporting our people in the important time that they spend at home, with their families, and in their communities.

These integrated programs feature safety culture messages and initiatives, and in some sites, integrate diversity and inclusion programs as well.

Some of the strategies we use to further strengthen our culture include sharing real stories of mistakes we have made as an organization and their consequences and helping leaders understand the vital role they have in listening and creating an environment that encourages ethical behavior.

and Supply Chain Training walk through a bamboo forest.

On the cover: Top: A team from Ansell Poland challenged themselves to overcome mud, water, fire, swamps, slopes, vertical walls, ropes, barbed wire and trenches during a Runmageddon race outside of Krakow, Poland.

and Danawala, two separate protected rain forest patches in the southern region of the country.

Ansell Limited – ABN In FY19, members of the Executive Leadership Team and senior operations leaders kicked off an ambitious project to update and consolidate the existing enterprise resource planning (ERP) processes across eight Ansell manufacturing locations in Sri Lanka, Malaysia, Thailand, China and Vietnam.

Ansell Vietnam, shown here, was selected as the pilot plant for the implementation.

the PPE and Healthcare industries in responsible human rights, environmental and governance practices.

safe environmental practices, and managing risk across our operations.

on a journey to operate more efficiently, to conserve resources and to protect communities through strategic environmental management.

Our ongoing work in this area includes a program of climaterelated stress-testing and scenario planning regarding the impact of drought, excessive rains, rising sea levels and so forth, the results of which we intend to publish in future annual reports.

Ansell continues to administer a charitable donation program aligned with its global corporate social responsibility pillars of human rights, community, environment and governance.

However, we achieved a in absolute water use resulting from our water use reduction program.

to reduce water use in order to achieve our goal.

generated from renewable sources in our manufacturing operations.

This increase was primarily due to plant closures in Mexico and Korea, re-allocation of volume to more efficient locations, resulting in lower production value.

The CSR & Risk Committee oversees human rights (including safety), environment and community matters, from a corporate responsibility and sustainability perspective.

During recent years, Ansell has made significant progress incorporating environmental, social and governance standards into our business operations, implementing actions to address gaps and enhance strengths in the key focus areas.

as ours will need to manage a diverse and dynamic range of social and environmental factors.

We are proud of our track record in creating a safe working environment at Ansell and we strive to promote and respect the rights and well-being of all workers.

Consistent with our Human Rights Statement, Ansell’s approach concerning the management of human rights risks, including slavery and human trafficking, is necessarily ‘people centred’ and seeks to use due diligence to identify and assess where potential impacts may be potentially severe (and/or have the capability to become so) and therefore require prioritised action as part of a systematic approach.

all standards, health and safety, environment and business ethics, providing independent verification of Ansell compliance with these standards.

Ansell manufacturing sites use comprehensive tracking tools to monitor compliance (including the use of card, finger or face scanning to capture worker attendance and automated time-clock systems).

In response, Ansell offers competitive compensation and an attractive work environment to retain employees and to recruit and attract a dependable workforce.

Additionally, we re-structured shift roster systems and upgraded local Human Resource Information Systems to monitor thousands of worker movements.

to create dashboards that monitor headcount, turnover, gender diversity, and employee movement on a real-time basis.

Ansell provided its employees with access to an industry-leading all corners of the globe for geopolitical, terrorist, environmental, health and other threats that may put Ansell people and locations at risk.

Using the mobile phone app minimises safety risks to employees and is a critical component for the effective provision of duty of care, enabling Ansell to manage travel itineraries, provide awareness of security threats, and ensure the most appropriate mitigation and response strategies.

A great deal of business success at Ansell stems from the value we place on diversity and inclusion.

We embrace diversity to transform our future and power innovation at Ansell.

Cultural diversity of Ansell employees at Manager level and above.

Our progress on our employee goals have not yet achieved the same degree of success.

Achieving numbers is one aspect, the goal is to ensure a balanced workforce at all levels of our organisation and to harness this diversity fully through our inclusion goals.

With the launch of a new online tracking platform, employees now have a way to capture their volunteer hours.

Our Perspective Ansell management leads by example to create and promote a workplace environment where ethical principles and business conduct are expected and encouraged behaviours.

Supplier Code of Conduct Culture of Ethical Decision Making In FYDecision-Making Training program, a new training program aimed at raising our plant managers’ awareness of their decisionmaking process from an ethical/moral perspective.

the purpose or effect of creating an intimidating, hostile or offensive work environment for that person.

in all areas of operations; respect for the rights of all individuals; and respect for the environment.

Managing Director and CEO Magnus Nicolin visits the new Vietnam plant expansion.

Environmental Management Start Clean, Run Clean, Leave Clean.

Ansell’s environmental management framework provides structure and standards for overseeing daily activities.

in place to measure, track and manage relevant data in our facilities on environmental management and performance, including environmental compliance and operational performance metrics, specifically in the areas of water management, energy efficiency and waste management.

This data is displayed to site employees to drive engagement and improvement and is reviewed by plant and executive management against performance indicators, enabling Ansell to identify successes, risks and opportunities for improvements across its operations.

CDP Reporting For the second year, Ansell participated in the CDP review processes on Climate Change and Water Security.

in place actions to address those improvement opportunities Previous feedback for CDP notes robust governance at the board and management level; consistent and verified Scope emissions data; and significant emission reduction achieved through reduction activities.

in the management of climate change and water security issues and consider the CDP process as an important input to help us identify areas of priority focus.

to identify corporate level exposures in order to put in place mitigation strategies.

However, we achieved a use resulting from our water use reduction program.

new process technology that uses less water to manufacture.

our water using technologies such as reverse osmosis.

We have established a reverse osmosis waste water treatment pilot project at our Biyagama site in Sri Lanka.

is to eventually process for re-use up to half of all waste water used at the Biyagama site.

GHG Strategy and Validation Climate change is a critical global challenge.

to mitigate greenhouse gas emissions (GHG) through technology and innovation.

In FYwith the Conservation Carbon Company and the Sustainable Future Group to restore degraded rainforest in Sri Lanka while reaping a carbon insetting benefit.

Ansell’s bio-link aims to create a biodiversity corridor between Haycock and Danawala, two separate protected rainforest patches in the southern region of Sri Lanka.

Continuing to increase the use of energy generated from renewable sources in our manufacturing operations.

Investing in energy generation from more sustainable sources such as biomass remain one of Ansell’s key initiatives.

Additionally, Ansell has begun to invest in solar-generated energy.

Sri Lanka and a solar water heater project in our Vietnam facility.

We are committed to increasing the use of solar energy in our manufacturing facilities in years to come.