SUSTAINABILITY REPORT 2016-2017 Table of Contents
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SUSTAINABILITY REPORT 2016-2017 Table of Contents CEO’s message 4 About the Report 5 The Richter Group 10 Corporate Governance 13 Our Business Results 26 Quality healthcare 31 The Health and Safety of our customers 36 Our Human Resources 44 Environmental Responsibility 58 Health and Safety 66 Appendices 72 GRI Content Index 81 2 SUSTAINABILITY REPORT 2016-2017 3 THE CEO’S MESSAGE ABOUT THE REPORT Dear Partner, Dear Employee, Dear Reader, Our Company draws up a Sustainability Report every Richter. This concerned the essential elements of two years on its economic, environmental and social Richter’s stakeholders in Hungary and the com- In 2010, Richter’s management decided to choose a new business performance. Our sixth report on sustainability ap- pany’s activities in Hungary (all organizational model in response to the increasing challenges of the pharmaceutical plies to the 2016-2017 calendar years. Prior to that, units). industry. In line with the ‘Speciality Pharma’ model, Richter’s business we issued a report in 2016, reporting on the events When making this report, we carried out an ex- is characterised by high added value along the entire value chain, i.e. in and developments of the years 2014-2015. In our lat- amination and validation of the relevance of ma- R&D, production and marketing alike. Our long-term strategy is based on est report, we switched to the G4 version of the GRI, terial issues at the Group level. The analysis was organic growth along with case-by-case acquisitions especially in gynae- which focuses on the main stakeholders and the carried out by independent experts of Alternate, cology. Today, Richter boasts one of the broadest gynaecological prod- key elements of operation. In this year’s report, we involving Richter’s 17 sites (subsidiaries, repre- uct lines in the world. At the same time, it has managed to preserve its switched over to compliance with GRI Standards. sentative offices and sales partners) with the fol- century-old original research focusing on disorders of the central nervous system and has also created The previous relevance analysis was based on re- lowing respondents: a biosimilar development and production capacity in order to meet the constantly growing needs for search conducted by KPMG Hungary on behalf of the treatment of oncological and immunological diseases. Gedeon Richter Plc (manufacturer) Hungary, Budapest Despite our strategic change, our mission remains the same: as an independent company based Richter-Themis Medicare (India) Private Ltd. (manufacturer) India, Vapi in Hungary, we are committed to providing global services to improve health and the quality of life. Gedeon Richter Polska Sp. z o.o. (manufacturer) Poland, Grodzisk I am convinced that our business model based on a broad range of gynaecological products and the Richter-Helm BioLogics GmbH & Co KG (manufacturer) Germany, Bovenau successful launch of original and biosimilar drugs can ensure sustainable success for Richter in the ZAO Gedeon Richter RUS CJSC (manufacturer) Russia, Jegoryevsk future. I am proud that last year the European Commission granted marketing authorisation for the Gedeon Richter Romania S.A. (manufacturer) Romania, Târgu Mureș first biosimilar product developed by our Company, which offers advanced therapy for the treatment PregLem SA (development) Switzerland, Genf of osteoporosis. On the other hand, our broad-spectrum antipsychotic drug invented by Richter’s re- Representative Office in Kazakhstan Kazakhstan, Almaty searchers and developed together with our strategic partner in the US was also made available during the relevant reporting period. Russian main representative office Russia, Moscow The three elements of sustainability – social, environmental and economic – are interdependent. We Ukrainian representative office Ukraine, Kiev cannot succeed in the long run without taking responsibility for our environment and our society, as we Vietnamese representative office Vietnam, Hanoi cannot achieve economic success without doing our best to protect our society and our environment. Gedeon Richter Marketing ČR s.r.o. (sales) Czech Republic, Prague Some of the value created this way can be recycled into the business, while in addition, responsible Gedeon Richter France S.A.S. (sales) France, Paris business conduct provides wider social benefits, since healthy people and communities are essential Gedeon Richter Pharmaceutical (China) Co. Ltd. (sales) China, Shanghai to building strong, sustainable societies. One of the best examples for this is our Health City program Gedeon Richter Mexico, S.A.P.I. de C.V. (sales) Mexico, Mexico City that has been running for 10 years now, which provided the community with a wide range of benefits Gedeon Richter Pharma GmbH (sales) Germany, Cologne through taking individual responsibility and strengthening health-conscious behaviour. Gedeon Richter Ibérica S.A. (sales) Spain, Barcelona In 2016, Richter placed its sustainability principles on a new foundation, identifying the areas and cri- teria through which our Company can enforce the principles of social responsibility in the long term in all areas of its operations. Our sustainability policy is published as an appendix to our annual report. By involving international partners, we examined standards and industry guidelines (a total We are committed to pursuing our business in the spirit of effectiveness and transparency. We also seek the extent to which material issues are similar to of 44 topics); to ensure that our business strategy reflects our responsibility for society and sustainability, thereby or different from the key issues previously iden- • we analysed the range of communication creating value for all our stakeholders. tified, and based on this, we put together the channels and tools for informing and in- Group’s material sustainability issues, which are volving stakeholders by affected groups; also described in our report. Material issues were • we ranked relevant issues based on the im- Gábor Orbán determined in the following steps: pact and expectations of local companies Chief Executive Officer (based on available stakeholder informa- • identifying relevant issues based on na- tion). tional and international benchmarks, GRI 4 SUSTAINABILITY REPORT 2016-2017 5 ABOUT THE REPORT ABOUT THE REPORT We considered the following criteria for deter- • Who are the stakeholders that directly de- In the analysis, we found that the respondent com- We consider the production of intermediates and mining the range of stakeholders: pend on the Company’s business and prof- panies have some kind of practice in place for in- active substances to have a significant impact • Who are influenced by the Company’s busi- itability? volving and informing all critical stakeholders: sup- on our environment, while the environmental im- ness? Based on the survey, we created the Group’s cur- pliers, healthcare workers, financiers, consumers, pact of finished products is relatively low. There • Who influence the Company’s business? rent stakeholder map shown below: authorities, industry analysts, the local commu- is no production activity at our Swiss subsidiary nity, media, employees, environmental and social (PregLem). Our representative offices, commer- non-profit organizations, educational institutions cial and wholesale companies and several other Stakeholder map and owners. (See details in the Chapter “Corpo- businesses in which we have an interest, which rate Governance / Communication in practice”.) support the Richter Group by providing services, Keep satisfied, monitor Key opportunity / threat The information gathered in the survey was there- are only touched upon in our report when they Employee fore suitable for prioritizing relevant issues from are relevant for a particular (material) issue. High Supplier the point of view of stakeholders as well. The published information is based on docu- Management During conducting the survey, seven “key issues” mented measurements, calculations, official an- Competitor were identified, as well as five substantive cases nouncements and records. Consumer and four additional priority cases. We also pro- Healthcare Analysts vide information on the subsidiaries in connec- Our report has not been audited. The Sustainabil- Educational Local workers community Institutions Media tion with major safety and environmental issues. ity Report corresponds to the ‘Core’ compliance At the same time, we have not yet developed a level of the GRI Standard, which is verified by an on stakeholders Low priority Continuous involvement and informing Group-wide data collection and reporting proce- independent third party, Alternate Kft. dure for the other topics, which will be done in As in previous years, you can find the pdf version Social civil The Company’s influence influence The Company’s organisations Shareholders the next few years. of our sustainability report on the website of Rich- Authorities ter Gedeon Plc: www.richter.hu If you have any Financiers Our Polish, Russian and Romanian manufactur- questions or comments on our report, you can Environmental civil ing subsidiaries produce finished products. Our send them to [email protected]. organisations Indian company manufactures intermediates and active substances. Low Low High Stakeholders’ influence on the Company The size of the circles indicates the level of interest of the person concerned in the responsible and sustainable business of Gedeon Richter, which we also summarise in a table: High level of interest Medium level