Enabling a Healthier World Sustainability Report 2020 Close-up of the center of a flower Sustainability Report 2020 “ Safety and sustainability are critical conversations in how we plan, execute and evaluate every aspect of our work.” Agricultural area and thoroughfare, Germany Contents Contents 4 Our Commitment 6 Introduction 10 About Lonza 25 Economic to Sustainability 6 Lonza and the 12 Our Strategy 25 Economic 5 Our Policy UN Sustainable 13 Our Governance Performance Development Goals 14 Our Employee 26 Anti-Corruption 7 Fight against Covid Community 28 Quality and Reliability 8 Diversity and Inclusion 17 Our Supply Chain 30 Customer Satisfaction 20 Our Stakeholders 22 Our Reporting Focus 32 Environmental 46 Social 60 GRI Overview 34 Energy 46 Investing in 36 Water Communities 38 Emissions 49 Occupational Health 41 Waste and Safety 44 Environmental 53 Non-Discrimination Compliance and the Protection of 44 Innovating for Human Rights Sustainability 53 Customer Health and Safety 54 Socioeconomic Compliance 56 Talent Management 58 Employee Engagement 3 Sustainability Report 2020 Our Commitment to Sustainability time when compared to our baseline year (2018). We have also started a journey towards more renewable energy supplies, and increased onsite generation and offsite sourcing. In 2020, we have worked internally to establish a new Diversity and Inclusion Taskforce. This will help us to embrace the value of a diverse working community. Specifically, the Taskforce will help us to tackle less obvious issues, including hidden diversity and unconscious bias. Finally, we have made local communities Pierre-Alain Ruffieux investments, by providing critical resources where they are CEO, Lonza Group needed the most. We have provided disinfectants and protective equipment to local hospitals, and supported hygiene projects in locations where the risk of infection remains high. Dear Stakeholders and Friends of the Company Our commitment to sustainable development remains unchanged Welcome to the Lonza Sustainability Report 2020. as we move away from the chemical industry and refocus on the healthcare industry. While we are pleased with the 2020 was a unique year that combined unexpected challenges results of our initiatives, we also see the need to accelerate and opportunities for the global Lonza business. The arrival our plans, and review our footprint and targets. We recognize of the COVID-19 pandemic meant that our health, safety and that environmental and societal considerations are an ethical sustainability professionals have played a critical role in protecting imperative for our business, as well as being increasingly our employees and securing the continuity of our operations important for our healthcare customers and wider society. For through the course of the year. More widely, we worked quickly instance, it is clear that greenhouse gas emissions have become to establish a dedicated COVID-19 Taskforce, which brought a focal topic for the industry and we will consider accelerating together multiple business and corporate functions to ensure our efforts towards achieving neutrality. Today, supply chain that we could continue to deliver essential products and networks are under increasing scrutiny for their social and services to our customers at a time when the need has never environmental responsibility, which spurs us to examine upstream been greater. We have also played an active and decisive role and downstream implications. in controlling the pandemic, by bringing on line new production facilities and technologies, including the fast-track introduction We enable our customers to deliver new and innovative medicines of manufacturing suites for the Moderna COVID-19 Vaccine that help treat a wide range of diseases. We engage and equip our drug substance. employees with safe and modern workplaces, and we support our communities with innovative initiatives and resources. As part of a While working to manage the challenges and opportunities of the wider network we aim to collaborate with customers, suppliers and pandemic, we have also met most of our safety and sustainability stakeholders to maintain and protect human rights, while reducing targets and expectations. The safety of our employees has the footprint of the entire supply chain. We will maintain a focus on always been a top priority for us and we are pleased to say that these critical areas of our work, and we will review targets, baselines in 2020 we made around 34,000 safety improvements across and governance as we continue to develop our organization. our site network. These were mainly driven by the vigilance and diligence of our employees, and resulted in one of our lowest Finally, I would like to take this opportunity to thank all of our recorded years of lost-time injuries. employees. Sustainability is not just a set of activities and programs; it is a collective purpose and mind-set. Our employees We have been making progress across many key environmental maintain and enhance our approach to sustainability every day areas, by reducing energy and water consumption and carbon through their interest, initiative and innovation. The work shared emissions for both intensity and absolute values at the same in this report is a testament to their endeavour and commitment. 4 Our Policy Our Policy Compliance and Integrity We ensure that regulatory compliance, integrity and ethical conduct are the foundations in every place we operate. Vision ZERO We continually improve our systems and aspire to ZERO incidents, injuries or emissions. Our People We develop our employees by helping them grow. We provide safe workplaces, care for employees’ well- being and foster their involvement and participation. Our Environment We improve our environmental footprint by continually reducing energy, water and material demand. Value for Society We create value for society by delivering science-based solutions to develop the medicines and consumer products of tomorrow. We engage in the communities where we operate. Central Park, New York Sustainability Report 2020 For many years, our products and services have helped our Introduction customers to support developing global necessities, such as the need for healthy and abundant food, clean water, affordable medicines and healthcare, and growing global demand for enhanced hygiene, health and well-being. Safety and Sustainability is an essential part of how we do business. As one element of our overall sustainability commitment, we We have assessed the 17 SDGs and identified the eight that foster transparency and reporting in line with the Global Reporting we consider the most relevant to our industry, operations and Initiative (GRI) Standards, which represent the accepted industry sustainability focus areas. As a manufacturer mainly serving practice for tracking performance on a range of economic, industrial customers, we are part of a bigger network to advance environmental and social indicators. towards these goals. The eight relevant SDGs are listed below. We have tied each material topic from the Materiality Assessment In 2018, a Sustainability Council was established by our Executive to a relevant SDG. Committee to help us implement sustainability and share best practices across the global company. The cross-functional Council is headed by the Lonza Group General Counsel and Our crop protection solutions offer highly effective includes additional members from Environment, Health, Safety products which improve crop yields and reduce farm- and Sustainability, Human Resources, Investor Relations and ers’ needs for pesticides, herbicides or water. Our Communications. It directly interacts with the Executive Capsules and Health Ingredients portfolio includes Committee and the Board of Directors. The ultimate responsibility ingredients for dietary supplements and a broad for all sustainability matters lies with the Chairperson and the spectrum of delivery technologies. Board. The Council’s objectives are to: In the Lonza Pharma Biotech & Nutrition business, • Establish and communicate sustainability goals and provide we work to enable our customers to meet some of guidance and support to those Lonza teams engaged in the greatest challenges in patient treatment. We sustainability initiatives; achieve with products, services and cutting-edge • Encourage sharing of established best practices across technologies that can help to save, extend and divisions and functions throughout Lonza; enhance lives. Our Consumer Health & Nutrition • Focus attention on and provide leadership for driving business provides advanced nutritional ingredients sustainability at Lonza; used in a broad spectrum of products, from energy • Serve as a link and source of dialogue between internal drinks and dietary supplements to sports nutrition. networks in Lonza and external stakeholders. Our Home & Personal Care business provides cer- tified organic and natural cosmetic ingredients as The 2020 Sustainability Report provides insights into our well as other skin and haircare treatments that help commitments and performance regarding the most relevant people to feel and look their best. sustainability topics for us and our stakeholders, for the whole of Lonza, including the Specialty Ingredients segment. This report We have established several partnerships with builds on the work shared in previous Sustainability Reports, universities worldwide. We also engage in spon- including the materiality assessment, which prioritizes the soring activities with educational institutions.