Abbott Citizenship Report 2012-2013

About Abbott

Abbott is a diverse, global healthcare company with scientific expertise and products that address the full range of healthcare needs – from prevention and diagnosis to treatment and cure. Our company discovers, develops, manufactures and markets diagnostics, medical devices, nutritionals and branded generic pharmaceuticals – products for which there is increasing demand in both developed and rapidly growing markets throughout the world. In 2012, we achieved global sales of approximately $22 billion. Abbott serves people in more than 150 countries and employs approximately 70,000 people around the world. Abbott is among the top 10 healthcare companies in Russia and has a significant presence in the country with more than 1,400 employees.

During 2012 we took decisive, strategic actions to better position our company for long-term growth, including announcing that Abbott would divide into two separate, publicly traded companies — one focused on diversified medical products and the other on research-based pharmaceuticals. This separation was completed at the beginning of 2013. The diversified medical products company, which retains the Abbott name, consists of Abbott’s established pharmaceutical, devices, diagnostics and nutritional businesses. The research- based pharmaceutical company, AbbVie, includes Abbott’s pre-existing portfolio of proprietary pharmaceuticals and biologics. The content of this report includes information on Abbott only.

About Our Cover Arina is one of the 16 finalists in the Star Brush art contest for children living with cystic fibrosis. In Russia, cystic fibrosis affects one child in every 10,000 newborns. Abbott partners with medical specialists and scientific organizations to improve diagnosis and raise awareness about this rare genetic disease among pediatricians.

Table of Contents

1 A Welcome from Our General Manager 9 Advancing Healthcare Systems 2 Our Operations in Russia 10 Advancing Science and Technology 4 The Economic Impact of Abbott in Russia 12 Addressing Critical Issues 5 Citizenship at Abbott in Russia 14 Business Integrity 7 Abbott’s Alignment with Russia’s 15 Developing Our People Healthcare Priorities 16 Environment, Health and 7 The Three Key Priorities of Our 17 External Recognition

InvestmentCitizenship Strategy Report 2013: ABBOTT IN RUSSIA A Welcome from Our General Manager

Dear Stakeholders,

We are proud to present Abbott’s first citizenship report in Russia. This report outlines our company’s approach to sustainable business and how we help to build healthier communities throughout Russia.

Abbott has played an important role in Russia since 1975, when we became the first U.S. healthcare company to begin products in the . Since then, we have continued to provide high-quality healthcare products and support patient and professional to improve . Our work targets that pose the greatest burdens on society – including cardiovascular disease, cancer, diabetes, infectious diseases and vision and cognition disorders.

In 2012, we established a new business investment strategy in Russia based on three key areas: helping to modernize and localize the Russian healthcare sector; promoting scientific collaboration and the development of new products in Russia; and encouraging healthy lifestyle initiatives. In this report, we showcase our work to integrate our new strategy to expand the positive impact our business has on society. We have engaged in a number of socially responsible programs that support our investment strategy and provide the Russian population with greater access to early diagnosis, quality nutrition and medical care.

We appreciate your interest in our citizenship programs and look forward to reporting our continued progress.

Sincerely,

Leonid Parshenkov General Manager Abbott in Russia

ABBOTT RUSSIA CITIZENSHIP REPORT 2012/2013 1 areas: diagnostics, nutritional products, (Above) Abbott vascular devices, vision care and established continually works to Our Operations better understand pharmaceuticals. Russia’s healthcare needs and how to in Russia Diagnostics address them more Abbott Diagnostics is a global leader in in efficiently by aligning Abbott is among the top 10 healthcare vitro diagnostics and offers a broad range our approach companies in Russia. We were the first U.S.- to business and of innovative instrument systems and tests based healthcare company to establish a society. for hospitals, reference labs, blood banks, production facility in the Soviet Union. In 1975, physicians’ offices and clinics. With more than Abbott began manufacturing infant nutrition 22,000 institutional customers in over 100 products in Ukraine, and in 1978 we opened a countries, Abbott’s diagnostic products offer representative office in Russia. In 2010, Abbott customers the latest technology, as well as acquired Solvay Pharmaceuticals to strengthen convenience, cost effectiveness and flexibility. our company’s ability to contribute to markets like Russia with high-quality, affordable medical In Russia, our work centers around ARCHITECT, solutions for patients in key therapeutic areas, a fully automated family of instruments for including cardiology, gastroenterology, neurology medium- to high-volume blood banks and core and men’s and women’s health. laboratories, designed to improve the efficiency (Above) Our and safety of the blood supply; and CELL-DYN, acquisition of Solvay Not only are we firmly committed to expanding hematology systems used to perform blood Pharmaceuticals access to our diversified portfolio of products, cell analysis. helps us bring high- we also are keenly focused on doing our part quality products like to support the development of a culture of Creon, a digestive Additionally, our Molecular Diagnostics product medication, to healthy lifestyles in the country and enhancing portfolio includes a variety of technologies and Russia. the national healthcare system – all in an effort tests that can detect subtle but key changes to improve quality of life for the people of in patients’ genes and chromosomes. These $22 Russia. While there is no health challenge that products have the potential to aid in early can solve alone, we believe that when detection or diagnosis, and can influence the BILLION all stakeholders come to the table, true progress selection of appropriate therapies and monitor global sales in 2012 can be made. disease progression.

22,000 In Russia, Abbott markets and distributes a institutional broad range of health products in five key customers in more than 100 countries

2 ABBOTT RUSSIA CITIZENSHIP REPORT 2012/2013 Abbott Nutrition of or with malnutrition in acute or long-term care We develop and market science-based and recovery. (Above) ARCHITECT products are nutritional products that support the growth, designed to improve health and wellness of people of all ages. Innovative tube-fed formulas Oxepa, Jevity and the efficiency and Our goal is to be a trusted leader in providing Osmolite are designed for patients who cannot safety of the blood innovative and superior nutrition solutions that meet nutrition needs through oral food intake. supply. advance people’s health, growth and recovery at all stages of life. Abbott Vascular Abbott Vascular, the world leader in drug-eluting Abbott’s key pediatric nutrition brands for stents, has an industry-leading pipeline and Russian infants include Similac, Similac Premium a comprehensive portfolio of market-leading for healthy infants, and Similac Hypoallergenic products for cardiac and vascular care, including for babies with high risk of allergy, Similac products for coronary artery disease, vessel LowLactose for babies with lactose intolerance, closure, endovascular disease and vascular Similac Antireflux for frequency reduction of closure technologies. (Above) Our posseting, as well as preterm formulas Similac specialized nutrition Special Care and Similac NeoSure. The In Russia, Abbott offers a wide variety of products, including Prosure, provide Similac range focuses on providing moms with innovative, quality products to physicians for essential nutrients innovative infant formulas that are scientifically treatment of their patients. Our vascular portfolio for children, adults, designed to support healthy growth, cognitive includes minimally invasive products such as the elderly, and and visual development. drug-eluting stents, bare metal stents, clip-based patients with cancer vessel closure products and suture-mediated or diabetes. Another important product in our nutrition closure devices, carotid stents and embolic portfolio is PediaSure, offering complete, protection systems, balloon dilation catheters balanced nutrition for children from one to 10 and guiding catheters. Key products in our years old. portfolio include XIENCE V and XIENCE PRIME drug-eluting stents for the treatment of coronary We also provide Russian consumers with artery disease. science-based and clinically proven medical nutrition for adults. Prosure is cancer nutrition Abbott Diabetes Care therapy for patients at risk or with cancer Abbott is a global leader in developing, cachexia. manufacturing and marketing glucose monitoring systems designed to help people better manage Glucerna is designed for people with diabetes their diabetes. Abbott has created a number of and helps to manage blood glucose level. Ensure leading-edge glucose monitoring systems for is the leading nutritional therapy for adults at risk use in both home and hospital settings.

ABBOTT RUSSIA CITIZENSHIP REPORT 2012/2013 3 Abbott Medical Optics (Above) Abbott Abbott offers the widest range of proven scientists develop The Economic a broad range of refractive technologies to address a wide range products designed of vision disorders and meet the needs of to improve quality of Russian patients who seek greater freedom from Impact of life in Russia. the limitations of eyeglasses. Our comprehensive vision care portfolio includes state-of-the-art laser vision correction technologies, cataract lens Abbott in removal systems and intraocular lenses, and a broad selection of corneal health products to Russia serve patients who wear contact lenses or need relief from dry, irritated eyes. Abbott has a significant presence in Russia, with more than 1,400 employees. We are a Established Pharmaceuticals growing company with long-term ambitions for Our Established Pharmaceuticals business our business in Russia. We aim to be among the provides affordable, high-quality branded most active investors in the Russian healthcare medicines that have been treating patients industry over the next decade in terms of successfully for many years. Our portfolio local production, R&D activities and medical in Russia covers a wide range of medical education. conditions and therapeutic areas, including cardiovascular diseases, infections, neurologic In January 2013, Abbott became a member of conditions, gastrointestinal diseases and men’s the Foreign Investment Advisory Council of the and women’s health, as well as vaccines. Russian Federation (FIAC) – a testament to our long-term commitment to the Russian healthcare Abbott has been improving its established industry. We strongly believe that membership brands for decades to better meet patient in FIAC will allow us to better contribute, as a needs. We have a dedicated development global healthcare leader, in further development organization in six locations around the world; of healthcare in Russia. this global team leverages a network of contract research organizations in key countries, including At every stage of our business value chain, Russia, in order to tailor Abbott products to the we seek to support our partners in delivering needs of local populations. growth, supporting creation and building the Russian economy. Our economic impact has positive benefits for many stakeholders, including the Russian suppliers we work with; the third- party manufacturers that produce our products; and the extensive network of wholesalers and retailers that distribute our consumer products.

4 ABBOTT RUSSIA CITIZENSHIP REPORT 2012/2013 practices across the organization, while driving (Above) We work transparency in the reporting of our economic, Citizenship to build sustainable social and environmental performance. Many solutions to the CWG members carry performance goals world’s most at Abbott and targets related to citizenship within their pressing healthcare respective functions. challenges. in Russia 2013 Citizenship strategy and plan Our citizenship activities in Russia are aligned At Abbott, we believe that innovative, with the three priorities outlined in our key responsible and sustainable business plays investment strategy: helping to modernize the an important role in building a healthy, thriving Russian healthcare sector; promoting scientific society – in Russia and around the world. This collaboration; and encouraging healthy lifestyle idea is the cornerstone of our global citizenship initiatives. strategy. We strive to foster economic, environmental and social well-being as we The following pages of this report explain in pursue the work of discovering, developing, more detail what these priorities mean for our manufacturing and distributing products that company. They provide examples of how we enhance people’s health. are progressing against each priority area today, as well as our plans for the future. We continually work to build sustainable solutions to the world’s most pressing healthcare To support the investment strategy from a challenges, while reducing our impact on the citizenship standpoint, we work to: environment and creating lasting value for both our stakeholders and our business. Our Strengthen our links with key stakeholders to strategies in Russia are informed by the nation’s widen the pool of people and interests with own unique challenges. whom we have contact. This will enable us to make our citizenship activity more robust Our citizenship strategy is well integrated and increase the relevance and effectiveness with our business strategy, and we track our of our contribution to Russian society. progress against the strategy on an ongoing basis. In 2011, we established our Citizenship Map our entire business value chain to ensure Working Group (CWG), comprised of senior we have complete insight into our impact on leaders from each of our business units and Russian society. This will lead to an effective corporate functions – Legal, Marketing, Public measurement system of citizenship key Affairs and Government Affairs. This cross- performance indicators in 2013. functional group meets on a quarterly basis and leads integration of responsible business

ABBOTT RUSSIA CITIZENSHIP REPORT 2012/2013 5 Stakeholder engagement • Developing healthcare professionals’ (Above) To create lasting value for and material issues knowledge and skills to enable the effective our stakeholders At Abbott, we believe in ongoing dialogue use of innovations. and our business, with all stakeholders, decision makers, expert Abbott invests in academics and wider audiences to determine • Developing our workforce by creating R&D around the our material issues and priorities. Our key opportunities for a rewarding career at Abbott. world. stakeholder groups include patients, consumers and customers; healthcare professionals; We are currently undertaking a series of government institutions and trade associations; interviews with government and market experts, employees; NGOs; suppliers and local media representatives, financial analysts and communities. other key opinion leaders in Russian society to help shape our business and citizenship Some of the most pressing issues that we are strategies and actions going forward. This is working on with our stakeholders include: in addition to ongoing dialogue with other key stakeholders such as employees, healthcare • Expanding patient access to innovative professionals, patient groups, suppliers, healthcare products and prevention programs. local communities and non-governmental organizations. • Partnering with the government to help modernize the healthcare system; provide high-quality innovative medicines; and develop a healthy lifestyle culture in Russia.

6 ABBOTT RUSSIA CITIZENSHIP REPORT 2012/2013 Abbott’s The Three Key Alignment Priorities of Our with Russia’s Investment Healthcare Strategy

Achieving our long-term goals cannot be realized Priorities without systematic application, planning and delivery on our part. In 2012, Abbott created Contributing to a healthy economy and a healthy and launched a multipart investment strategy population is Abbott’s vision for doing business for Russia. This is the practical expression of in Russia. Our long-term goal is to become a our long-term commitment to our role in the strategic partner to the Russian government development of the Russian healthcare industry and other stakeholders, with a focus on the and improvement of people’s health in the advancement of innovative healthcare in country, and is set out in more detail throughout Russia. Our work complements the Russian this report. government’s priorities, highlighted in the Strategy Pharma-2020 and Strategy of Drugs Our business strategy has been developed Provisions of Population of Russian Federation in response to four key factors: the business Until 2025. We are working to do our part to imperatives of Abbott as a world-leading create a thriving healthcare sector, to foster healthcare company; the market dynamics and investment in research and production and to operating environment in Russia; the needs and improve the health of the Russian people. views of our key stakeholders in the country; and the country’s healthcare priorities. We contribute in a variety of ways: Through our investment strategy, we strive to We participate in the healthcare modernization make important contributions to reducing the program, assisting with new technologies and Russian mortality rate, extending life expectancy equipment. and creating a better quality of life for Russian people. Through working in partnership with We have donated a significant amount of patients, the medical community, policy makers equipment, such as analyzers for diagnosing and non-governmental organizations, we want and monitoring diseases and therapies, to to ensure that Russian citizens have access major hospitals and laboratories, to assist in to early diagnosis and high-quality innovative the modernization program. and affordable healthcare solutions, as well as all necessary educational medical information. We host educational events and programs Through these efforts, we seek to help future for clinicians and technicians to help educate generations of Russian people be healthier. them on how to provide the best service and quality to customers, using equipment Taking all of these factors into account led us to efficiently and cost effectively. focus on our three key business priorities. Each one demonstrates a distinctive commitment to One way we can help address the government’s achieving the common goal of contributing to the priorities is by leveraging our global leadership development of the Russian healthcare system and expertise in new technologies across the and improving people’s health in the country. full spectrum of healthcare. We plan to expand our commercial, manufacturing, social and R&D activities in Russia, with the goal of broadening knowledge and fostering further scientific innovation. Additionally, we will work to increase the availability of our high-quality products to Russian patients.

ABBOTT RUSSIA CITIZENSHIP REPORT 2012/2013 7 1. Helping to modernize and localize the Russian In the coming years, we will invest in Russia (Above left) Abbott is partnering with healthcare sector to foster scientific advances, drive Russian Petrovax, a local Our goal is to expand the manufacture of Abbott innovation and facilitate the strong integration of pharmaceutical products in Russia. We believe that building Russian R&D into the world’s R&D network. We company, to on our company’s longstanding expertise are already working toward this goal through our develop an influenza and capabilities will support the production of collaboration with Chemical Diversity Research vaccine. medicines in Russia, positively contribute to Institute (CDRI), a partnership that began in (Above right) the economy and also strengthen our local June 2012. CDRI is the research entity of a Abbott’s partnership business. This will generate further well-paid Russian R&D and investment group, ChemRar. with ChemRar will , build local distribution networks, Our joint work focuses on creating new and lead to new and create high-skilled and contribute to the convenient forms of existing Abbott medicines, more convenient payment of taxes. to improve patient compliance and decrease forms of Abbott medicines. medicine intake. This will be accomplished by Delivering these benefits will require us to partner developing new technologies and introducing with local companies in Russia – thereby making new formulations for these products. a further contribution to the healthcare industry. We have already launched partnerships with 3. Developing healthy lifestyle initiatives two leading Russian companies, Petrovax and Russia has a number of significant challenges Pharmstandard, including the development associated with major diseases. The country and production of an influenza vaccine. Such has one of the highest levels of adult mortality of partnerships allow us to share expertise with all of Europe and Eurasia, and a disproportionate local partners and increase access to medicines number of its citizens suffer from chronic and treatments for Russian patients. illnesses such as cardiovascular disease, cancer and respiratory disease. 2. Scientific collaboration including development of new products in Russia Through our key investment strategy, we make Health improvements cannot be founded solely our contribution to meeting these challenges – on advances in research and manufacturing. The from diabetes and heart disease to cystic fibrosis capability and education of medical professionals and liver problems. is also critical to success. At Abbott, we see untapped resources in the scientific field The three priorities of our key investment and want to discover, develop and promote strategy provide a comprehensive response by existing local talent through training and sharing Abbott to some of the major issues that Russia expertise. faces today. In the following pages we explain in more detail what we are achieving in each of these issue areas.

8 ABBOTT RUSSIA CITIZENSHIP REPORT 2012/2013 treatment procedures. Our Laboratory Staff (Above) Abbott Education project allows physicians from Advancing employees work different specialties to learn about different types to modernize and of disease markers and incorporate the latest localize Russian Healthcare innovations into routine clinical practice, thus healthcare. improving the level of medical care.

Systems The project also includes quarterly webinars for Abbott has been a leading company for 125 physicians and biannual educational seminars years because we have continually adapted on state-of-the-art diagnostic technologies to the changing world around us – advancing for laboratory analysts, held at the practices in medicine, science and business to Academy of Postgraduate Education. deliver new solutions that make people healthier. We believe in using Abbott’s capabilities and Another aspect of this project is the Six Sigma expertise in Russia to help address gaps in the Quality Control management of laboratory quality and quantity of healthcare service, by operation, which works to improve the accuracy learning from and implementing international of diagnostics and minimize error rate. Our best-practice solutions in all we do. partners in this program are several private laboratories and the Moscow Academy of The first strand of our key investment strategy Postgraduate Education. centers on helping to modernize and localize the Russian healthcare sector. Like healthcare We also support high quality standards in systems all around the world, Russia’s system medicines development through dedicated suffers from significant cost constraints, and programs within the Abbott Clinical Academy. increasing efficiency is at a premium. It will be launched in 2013 and will include both offline and online training courses aimed Abbott is working to improve the efficiency at knowledge sharing and strengthening of diagnostic services by providing products professional capabilities of Russian healthcare for local clinics and by developing centralized specialists. diagnostic services. We also are using our expertise to offer a full-scale service showing how to build effective logistics around laboratories, using the skills of our laboratory design group, salespeople and engineers.

Investment in diagnostics is vitally important, as this aspect of healthcare is at the cornerstone of successful preventative therapies and

ABBOTT RUSSIA CITIZENSHIP REPORT 2012/2013 9 One way in which we contribute in this area (Above left and is through online , offering right) Abbott Advancing supports the sharing new ways of making worldwide expertise of information and knowledge readily available to Russian among healthcare Science and healthcare professionals. The Polaris Initiative is professionals and an excellent example of this idea in action. scientists around the world. The Technology Polaris Initiative’s The Polaris Initiative supports healthcare global education Abbott is committed to helping doctors, nurses professionals using Abbott Molecular diagnostic portal is an example assays. We have developed a worldwide of work in this area. and laboratory technicians reach the forefront of medical advances. We support programs educational online portal for clinicians and organizations that train and educate specializing in oncology and lung cancer; the Russian healthcare professionals, patients and portal offers access to up-to-date information consumers. and support from peers and colleagues from the global medical community. For example, Russia has a skilled medical professional industry a Russian laboratory beginning to use Abbott and a proud tradition of medical excellence Molecular assays can be put in contact with and innovation. However, new innovations and laboratories in other countries already using research move at a fast pace, and there is these same assays, for best-practice sharing always more that can be done to improve clinical and troubleshooting. excellence by sharing the latest best practices. The second strand of our key investment Another example of our work is the (Above) Preceptorship Program, which supports Neonatologists strategy underlies our commitment to promoting in Russia and scientific collaboration. educational exchange between neonatologists Israel exchange in Russia and Israel. Each program involves a ideas as part of visit of physicians and healthcare professionals the Preceptorship to leading hospitals in Tel Aviv to share best Program. practices and learn about neonatal care in a country that is a recognized leader in this area of medical care.

10 ABBOTT RUSSIA CITIZENSHIP REPORT 2012/2013 The purpose of the exchange is to promote We also work in partnership with others to (Above) Russia has experiential learning – increasing knowledge advance science for the health of Russia’s a proud tradition of and understanding about all aspects of pre- children. In the area of nutrition, we are working medical excellence. and postnatal care. In 2012, Abbott supported to further develop our infant formula, Similac. three groups of 10 to 12 physicians from across Russia and CIS countries, enabling them to One of the advantages of Similac is its unique learn from their peers in this way. In 2013, two oil blend without palm olein oil. Research has groups of Russian physicians have participated shown that palm oil is not well absorbed by in the program, which combines a tour of the body, as it binds with calcium (an important neonatal care units, lectures, case studies and mineral), which may contribute to hard stools round-table events. in infants. Abbott infant formulas are made without palm oil to promote fat and calcium Another way in which we seek to connect absorption and softer stools. Researchers have healthcare professionals across countries is found that babies fed on our Similac formula through the Executive Fellowship Program, without palm olein oil have 53 percent greater aimed at building the capabilities of Russian calcium absorption than those fed formula with healthcare professionals in interventional predominant palm olein oil. This is important cardiology in Moscow, and South because calcium promotes the development Region. The program centers on sharing and formation of healthy teeth and bones. expertise between Poland and Russia. Through these exchanges, Russian healthcare professionals travel to learn from colleagues in Poland for a series of practical learning workshops over several days. The first visits took place in March 2013.

ABBOTT RUSSIA CITIZENSHIP REPORT 2012/2013 11 Our FootPulse program, conducted between (Above) Physicians June and December 2012, focused on the in our FootPulse Addressing program focus on diabetic foot. For every six people with diabetes, early diagnosis one will have a foot ulcer during his or her lifetime, of critical limb Critical Health and 50 percent of patients will show signs of ischemia in peripheral arterial disease. Almost 70 percent of diabetes patients. all leg amputations occur in people with diabetes. Issues Time is a vital factor in the outcome of this Abbott strives to ensure access to treatment disease, so early diagnosis is vital. FootPulse is for those in need. Expanding healthcare access designed to decrease the number of amputations for patients in Russia is a key component of by providing critical limb ischemia (CLI) patients our social commitment and integral to our core with timely access to revascularization. Our business strategy. aim is to provide information about CLI and treatment options and to implement interactive The third strand of our key investment strategy feedback between patients and physicians on concentrates on initiating educational and courses of treatment. FootPulse was conducted healthy lifestyle initiatives among Russian in partnership with the Institute of Endocrinology, citizens. Some of our initiatives meet immediate Radiological Center of Central Clinical Military health needs, while others evaluate the longer- Hospital named after N. N. Burdenko in term effects of diseases. Odintsovo, CELT and Dzhanilidze Medical Center.

Addressing diabetes Raising awareness of cystic fibrosis Diabetes is a growing problem, not just in In Russia, cystic fibrosis affects one child in every Russia, but all around the world. It is estimated 10,000 newborns. Abbott partners with medical that some 336 million people currently suffer specialists and scientific organizations to improve from diabetes globally, and this number is diagnosis and raise awareness about this rare expected to increase to 552 million by 2030, genetic disease among pediatricians. according to an assessment by the International Diabetes Federation.

12 ABBOTT RUSSIA CITIZENSHIP REPORT 2012/2013 The ultimate aim is to contribute to the creation grand prize for the 16 finalists was a five-day (Above) The Star of a national cystic fibrosis center in Russia – master class at prominent Moscow galleries in Brush art contest an ambitious goal, but one that over time will 2013. The finalists’ paintings were on display at raised national bring significant improvements in the way cystic top galleries, helping to raise public awareness. awareness of the fibrosis is managed in Russia. challenges faced by Screening for women’s health children living with cystic fibrosis. Abbott has also implemented social initiatives Women’s health is another of Russia’s major in Russia to support children with cystic fibrosis concerns. Thirteen thousand women in the and to improve their health outcomes. One country are diagnosed with cervical cancer each example is Star Brush, an art contest for children year; 7,000 of them will die. We are proud to be with cystic fibrosis conducted in 2012. The making a contribution to the fight against human contest was designed to raise awareness of the papillomavirus (HPV), the virus that causes challenges faced by people living with cystic cervical cancer. Every woman over the age of fibrosis, including the social stigma surrounding 30 and under the age of 60 should be checked the disease. Most people do not know that every three to five years for the presence of cystic fibrosis is hereditary and that it is not HPV. The challenge of HPV screening can only contagious, and as a result, they can be fearful be met through a national program and is not of interacting with cystic fibrosis patients. something that Abbott can or should tackle alone. However, we have been working to The Star Brush contest offered children living make our expertise available to develop the with this disease the opportunity to unleash best solutions to combat this disease through their creativity and inspired them to express a systematic, science-based program. We are their dreams and hopes through drawings and currently supporting several local activities in paintings. The topic of the contest was “My some regions to help advance treatment and Future.” The judging panel for the contest was care in this area. comprised of representatives of the National Public Organization Assistance to Patients with Cystic Fibrosis, the Russian Academy of Fine Arts and Regional Non-Governmental Charity Fund Quality of Life, as well as Abbott. The

ABBOTT RUSSIA CITIZENSHIP REPORT 2012/2013 13 Creating an environment where employees can (Above) Abbott raise questions and concerns helps us advance requires a number Business of employee training our commitment to ethical behavior. Training and and educational education programs for employees increase their programs on ethical Integrity awareness of our company’s Code of Conduct behavior. and the legal and ethical implications of their Abbott seeks to maintain the highest standards actions and behaviors on a day-to-day basis. of ethical conduct in everything we do – in Russia We have established systems and processes and throughout the world. Abbott employees for employees to ask questions and report understand the important impact that their work suspected violations of our Code, policies and and our products have on people. They strive procedures. We offer a number of resources to every day to ensure they are doing the right employees, such as our Ethics and Compliance thing in the right way. We make it a priority to Helpline, a telephone and Web-based hotline ensure that all Abbott employees understand our available 24 hours a day, seven days a week. company’s values, Code of Conduct, policies and Employees also may contact the Office of Ethics procedures, as well as our wider legal obligations. and Compliance or regional/divisional Ethics and Compliance personnel directly. Abbott’s global compliance policies are adapted to Russian regulations and designed to create Abbott also has rigorous procedures governing an environment where strong ethical practice our relationships with third parties that are continues to be a fundamental component of our regulated, documented and subject to due- business success. diligence procedures. These policies extend throughout our value chain.

14 ABBOTT RUSSIA CITIZENSHIP REPORT 2012/2013 Abbott Management Fundamentals: a (Above) Abbott specialized training program for managers Developing employees can consisting of several modules covering all choose from a important managerial skills, such as goal variety of training Our People setting, control, skills, programs for evaluation, motivation and many others. professional One of our highest priorities is helping each development. employee fulfill his or her potential and build E-learning: online training programs available a rewarding career at Abbott. We offer our for all employees covering diverse areas of employees opportunities for personal growth expertise and knowledge, including sales and development. skills, finance and the English language.

Abbott is committed to achieving a diverse We also are innovating in the way we recruit and inclusive work environment. Diversity of to ensure that we deliver better quality service perspectives, experiences and skills is critical to our customers. Our Diagnostics business to our competitiveness. We work to leverage is participating globally in Project Titan, which and learn from our differences to deliver is a response to market demands for an greater business impact across all levels of integrated and sophisticated sales and service our company. We have an excellent record delivery. Traditionally the workforce in this area in terms of top management, with a gender has consisted of two types of employees: balance in Russia of 53 percent male and 47 salespeople, to secure the contract, and percent female. engineers, to oversee installation and operation. Through Project Titan, we are recruiting and Abbott offers a great variety of training developing individuals who can excel in both programs in Russia to stimulate the employee’s areas of expertise, enabling us to deliver more professional development and required effective and efficient service to customers. competencies. These include:

Corporate Training Academy: a system of corporate education allowing employees to select from a range of training programs appropriate to their position and experience level.

ABBOTT RUSSIA CITIZENSHIP REPORT 2012/2013 15 beautiful forests and rivers. Our Innovaction (Above) Abbott project, launched this year, encourages monitors its Environment, usage at our employees to develop innovative ideas relevant facilities around to environmental efficiencies. the world. Health and Our large vehicle fleet can make a contribution to energy savings as well, and we are actively Safety looking to replace older vehicles with more Abbott works diligently to reduce our energy-efficient models. environmental impacts – in Russia and throughout the world. Our three environmental priorities are The safety of our employees is a key concern, addressing climate change, water usage and and our commitment in this area is well illustrated (Above) Project product stewardship. We are equally committed by our actions on safe driving. The integration of Saturn contributed to creating a safe environment for our employees, Solvay into Abbott in 2010 more than doubled to a 30 percent Abbott’s vehicle fleet in Russia to 1,300. reduction in traffic and we are integrating sound health and safety for practices into all aspects of our business. our vehicle fleet To address the greater risk associated with in Russia. Abbott’s direct environmental footprint in Russia the larger fleet, we instituted comprehensive is limited to our commercial operations and communication and recognition programs such the activities of our sales force, particularly as Safest Driver of the Year, an incentive program through business travel. Nevertheless, we know that recognizes employees who have had no that our responsibility to reduce environmental vehicle accidents during the year. Additionally, impacts is much greater. At our headquarters in comprehensive hands-on Behind the Wheel safe Moscow, we focus on improving the efficiency driver training was rolled out to all field-based and sustainability of our business activities employees. These measures led to a reduction and products by reducing greenhouse gas in traffic accidents by more than 30 percent emissions, water use and waste. within one year, well ahead of our targeted decrease of 25 percent by the end of 2012. We Disposal of waste is a significant problem in also launched Project Saturn, which made safe Russia. We have launched initiatives to ensure driving a part of our employees’ development the recycling of waste and paper, and we plans. Several educational tools were provided encourage employees to use electricity, paper to employees to improve their skills. We are and water more efficiently. We also pay for continuing to implement additional programs, responsible disposal of our office waste and such as driver distraction awareness campaigns any defective or time-expired product in our and formalized investigation techniques following warehouses. Equally, we can make a contribution at-fault accidents, as a way to further enhance outside the office, through campaigns to clean our fleet and driver safety programs. up the natural environment, particularly Russia’s

16 ABBOTT RUSSIA CITIZENSHIP REPORT 2012/2013 External Recognition

• In 2012, Abbott in Russia was honored with the Platinum Ounce award in the Dynamics of the Year category, given to the company with the fastest business growth in the Russian healthcare market. The Platinum Ounce, an annual independent award for the pharmaceutical industry, has become a prestigious symbol of scientific advancement.

• Abbott also received the Platinum Ounce Project of the Year award in 2013 for our Star Brush competition for children living with cystic fibrosis.

• Abbott was named an Industry Group Leader in the 2013 Dow Jones Sustainability Index (DJSI), one of the most prestigious benchmarks for worldwide corporate sustainability. This was the ninth consecutive year that Abbott was included on both the Dow Jones Sustainability World Index and North America Index.

• Abbott ranked No. 29 on Barron’s magazine 2012 ranking of the world’s 100 most respected companies, and number 20 on the Corporate Responsibility magazine list of 100 Best Corporate Citizens.

• Abbott was named one of the top three Best in Class companies in its industry sector for financial, environmental and social performance by Storebrand Investments, a leading socially responsible investment (SRI) firm.

• Abbott has been included on the Ethibel Excellence Investment Register since 2005, in recognition of the company’s economic, social and environmental performance.

ABBOTT RUSSIA CITIZENSHIP REPORT 2012/2013 17 Please contact us with your questions and comments: Abbott Russia Leningradskoe shosse, 16A, bld.1, Moscow, Russia - 125171 abbott.com/citizenship

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