Sustainability Report 2019 Sustainability approach Access to healthcare Environmental protection Ethics and transparency Notices
AstraZeneca Sustainability Report 2019 2 About this report Table of contents
Sustainability approach 2
Sustainability overview 3 Our approach 4 2019 performance review 5 This report Follow us About us 6 This is our fifth annual sustainability report, LinkedIn Sustainability governance 7 and it describes our progress and challenges Global development contribution 9 from 1 January 2019 to 31 December 2019. Facebook The content of this report is based on those Stakeholder engagement 12 sustainability issues deemed material through Twitter comprehensive stakeholder engagement and Access to healthcare 14 analysis. All our business operations worldwide Glassdoor Access to healthcare overview 15 are in scope regardless of their function, unless otherwise stated. Disease prevention and treatment 16 Instagram Responsible research and development 19 Online resources Environment’s impact on health 22 • AstraZeneca Sustainability webpages: cover Assurance Investments in health systems 25 additional topics of interest to our stakeholders. We seek external review of our performance Affordability 27 to validate that we use the same rigour and • AstraZeneca Sustainability Data Summary: accuracy as we do with regulated reporting. Environmental protection 29 provides performance measures and targets Share your ideas Bureau Veritas has provided independent external with at least three years of data where available. and feedback at Environmental protection overview 30 assurance to a limited level for the sustainability sustainability@ • Infographics: show our processes and practices. key performance indicators shown in the astrazeneca.com Product environmental stewardship 32 Sustainability Data Summary as described in the Greenhouse gas reduction 34 • Policies and company standards: state our sustainability letter of assurance. Assurance was position and guidance on key subjects. Pharmaceuticals in the environment 37 also provided for select sustainability information Water stewardship 39 • 2019 Annual Report and Form 20-F: includes in the 2019 Annual Report. Assurance is in how sustainability is integrated across our accordance with the International Standard on Waste management 42 business model and into risk management. Assurance Engagements 3000 (ISAE 3000), and ISAE 3410 Assurance Engagements on Ethics and transparency 44 • Website: contains expanded discussions on Greenhouse Gas Statements. emerging topics and material focus areas. Ethics and transparency overview 45 Ethical business culture 46 Ethical business culture – bioethics 48 Inclusion and diversity 50 Antibody–Drug Conjugates (ADCs) Talent and workforce evolution 52 ADCs are among the most exciting technologies for the treatment of cancer. Workforce wellbeing and safety 54 AstraZeneca is developing novel ADC Responsible supply chain 57 targets that include therapy-resistant tumours and Human rights 60 cancer stem cells. We are building a library of payloads, and using our antibody engineering expertise for site-specific conjugation and next-generation ADCs. Notices 63 Sustainability approach Access to healthcare Environmental protection Ethics and transparency Notices
AstraZeneca Sustainability Report 2019 3
We lead Connection to human with health health Removing Supporting Fostering a culture of Work towards Manage our Create positive a future where environmental societal impact barriers and a healthy doing the right thing all people impact and promote creating solutions environment helps across our worldwide have access across all our ethical behaviour for healthcare prevent the onset operations, including to sustainable activities and in all markets are essential for and progression our supply chain, At AstraZeneca, health is our healthcare our products, across our global health of certain diseases promotes health business and our contribution solutions for working value chain and improve and wellbeing life changing towards a health outcomes to society. How we operate treatment and restorative supports sustainable ecosystems prevention approach for healthcare that benefit Our people and our planet through ambitions Ethics and science-based innovation. for 2025 transparency Equality and Our aspiration is for the future to be healthy prosperity for all, • Ethical and for us to be an active participant in a healthy Access to fosters healthy business society, planet and business. Our pioneering healthcare societies culture medicines touch the lives of millions of people, • Inclusion so it is a business imperative that we are partners Health is at the and diversity and advocates for solutions to global health. heart of our • Talent and At the heart of our sustainability approach is access Sustainability workforce to healthcare and its connection to environmental business at AstraZeneca evolution protection and ethics and transparency. • Workforce Our wellbeing material and safety • Responsible issues supply chain United • Human rights Nations Sustainable Development • Product environmental Goals (SDGs) stewardship • Disease • Greenhouse prevention gas reduction Environmental and treatment • Pharmaceuticals protection • Responsible in the R&D environment The health of the • Environment’s • Water impact on health planet impacts stewardship • Investments in • Waste all life health systems management • Affordability Sustainability approach Access to healthcare Environmental protection Ethics and transparency Notices
Our approach AstraZeneca Sustainability Report 2019 4 Healthy Healthy people planet
Why we Sustainability at AstraZeneca is Sustainability integration care about using our capabilities to Partnership, collaboration and transparency start with our own workforce. Within our make the most meaningful impact business we have practices to integrate sustainable thinking into processes. where society needs it – health. Operating model We work hard to develop medicines to save lives, Sustainability is a core part of our company strategy. Being a Great Place foster inclusive workplaces and catalyse positive to Work is one of our three strategic priorities for the company. Its success impact throughout our operations and supply includes delivering sustainability targets for our material focus areas. chain. We believe there is a strong connection These targets are a part of the company’s global scorecard that sets the Healthy between the health of our patients, our business, course for business and are the responsibility of every employee to achieve. business our workforce, our communities and the planet, Workforce training and each of these impact one another. Newly hired employees take an orientation module that includes an In our complex world, a siloed approach to introduction to our sustainability approach. We incorporate sustainability sustainability is no longer an option. We see education into our leadership and management development programmes. partnerships and transparency as enablers of Our leaders are also engaged with sustainability at key strategic events, a sustainable future. We seek to engage with like our annual Senior Leaders Meeting. stakeholders across the healthcare network and with problem solvers outside of healthcare. Our Financial reporting approach includes becoming more transparent We incorporate sustainability-related occurrences into publicly released in our material areas to support responsible, quarterly results for investors. We have a dedicated Environmental, Social and ethical management across the value chain, Governance (ESG) investor relations representative and engaged in investor performance measurement, and knowledge dialogue events throughout 2019. sharing for our sector. Risk management Our approach to sustainability has three We recognise the connection between enterprise risk management and interdependent and cooperative priorities: sustainability management. In 2018, enterprise risk management informed the sustainability materiality assessment and we used the results to better align our risk and sustainability classifications. The Global Sustainability function participates in quarterly company risk reviews.
Access to Environmental Ethics and Code of Ethics healthcare protection transparency Our Code of Ethics is based on our company Values. It provides clear guidance and direction to employees in carrying out their daily work. Annual training on the Code is mandatory for all employees. Sustainability is featured as one of four high-level Global Policies in the Code of Ethics.
For updates on our progress for metrics, see the Sustainability Data Summary.
Local sustainability initiatives are displayed at some of our campuses Sustainability approach Access to healthcare Environmental protection Ethics and transparency Notices
AstraZeneca Sustainability Report 2019 5 2019 Sustainability strategy Lead with health to performance support healthy people, a prospering planet and review an ethical business culture 9 1 of 3 45+ members govern sustainability on our Sustainability Sustainability is a component of performance metrics Access to healthcare Advisory Board – composed of external experts and Great Place to Work, one of the measured quarterly in internal Senior Executive Team members three company strategic priorities the company scorecard Work towards a future where all people have access to sustainable healthcare solutions for life-changing treatment and prevention 81,000+ 19.8m+ 9.7m+ UNGC healthcare workers trained people reached through million people reached through our Patron sponsor of the United Nations Global Compact (UNGC) (cumulative) our access programmes Patient Assistance Programmes action platform: Business Ambition for Climate and Health (cumulative) (cumulative) Environmental protection Manage our environmental impact across all our activities and products, towards a restorative approach 0 11% 11% 62% 18% 97% We commit to zero carbon reduction in Scope 1 increase in our of our total electricity use reduction in our water of active pharmaceutical emissions by 2025 and and 60% reduction in waste since 2015 is sourced or generated use since 2015 ingredient discharges from a carbon negative value Scope 2 greenhouse gas from renewable sources direct suppliers demonstrated chain by 2030 emissions since 2015 as safe1 Ethics and transparency Create positive societal impact and promote ethical behaviour in all markets across our value chain 45.4% 63.3 86% 96 89 women in senior instances of non-compliance of employee survey countries disclosing data points on manufacturing partners with middle management with the Code of Ethics per respondents feel that new online, interactive Sustainability 131 sites were evaluated for overall roles or higher thousand employees AstraZeneca is a Transparency Map of site operations, sustainability performance using our in commercial regions Great Place to Work suppliers, Access to healthcare Supplier Sustainability Framework programmes, and demographics
AstraZeneca Sustainability Data Summary has further reporting on our performance measures and targets Sustainability approach Access to healthcare Environmental protection Ethics and transparency Notices
AstraZeneca Sustainability Report 2019 6 About us Our Values
We follow We put We play We do the We are the science patients first to win right thing entrepreneurial
Our purpose: Our 2019 We push the boundaries of science strategic to deliver life-changing medicines. priorities Deliver Growth and Accelerate Be a Great Place We are a global, science-led biopharmaceutical Therapy Area Leadership Innovative Science to Work company. We discover, develop and commercialise prescription medicines. We follow the science to Our transform how diseases are understood, interact recognition and impact one another. Our medicines primarily 6,500 World and Europe treat diseases in three therapy areas: Sweden Global constituent 900 7,100 1,200 Dow Jones Oncology Canada Russia UK Sustainability Our ambition is to eliminate cancer as a 8,300 Index cause of death through scientific discovery 12,800 Other Europe US 18,100 and collaborations. 70,600 China 100 Most employees Cardiovascular, renal and metabolism (CVRM) Sustainable worldwide 1,700 3,000 As science uncovers commonalities between Japan Companies 3,000 Middle East and Africa cardiovascular, renal and metabolic diseases Central and 6,900 Corporate Other Asia Pacific and their associated complications, we aim to South America Knights transform how they are understood and treated. A List Respiratory Climate Change Our objective is to transform the treatment of 1,100 and Water respiratory disease with our growing portfolio Australia and Security of medicines and scientific research targeting New Zealand CDP disease modification.
We are also active in other disease areas – Strategic R&D centres: “Outperformer” autoimmunity, neuroscience and infection. Cambridge, UK (HQ); Gaithersburg, Maryland, US; Gothenburg, Sweden 8th of 159 Sustainalytics Global R&D centres: California, US; Boston, MA, US; Macclesfield, UK; Shanghai, China; Osaka, Japan Index series constituent FTSE4Good
$6.1bn $24.4bn AA rating R&D spend total revenue MSCI Sustainability approach Access to healthcare Environmental protection Ethics and transparency Notices
Sustainability AstraZeneca Sustainability Report 2019 7
Katarina Ageborg, Executive Vice-President, Sustainability and Chief Compliance Officer, governance President AstraZeneca AB, Sweden
Leadership messages: JP: Indeed, in India our employees were very excited to hear “At AstraZeneca, we all work to make the world a an interview with Katarina Ageborg about the Ambition Zero Carbon initiative, particularly our better place. We push the boundaries of science to younger employees who have been asking how Chennai can deliver life-changing medicines to the people who need contribute. On a more practical note, how does the company Jayasri Prasad, Senior Director, Head of Global them, and in 2019 we delivered unprecedented progress. Sustainability, AZ India, speaks with Katarina assess the risks of climate change, as we make our plans? KA: Global Sustainability works regularly with Enterprise Risk Our focus on sustainability is integral to our efforts, Ageborg, on behalf of employee advocates who Management to share and integrate insights and trends. We monitor and I am proud of the advances that we continue to are leading a lake restoration programme to environmental considerations as a risk element and in 2019, we make across our three priority areas – increasing access return water sources to Chennai, India. began a climate risk assessment based on physical climate hazards. to healthcare, protecting the environment, demonstrating So, it is important and there are specific governance structures our commitment to ethics and transparency. And, looking at environmental risks. with the ambitious plans that we have set out in JP: We’ve seen first-hand in Chennai the devastating impacts of droughts and flooding recently; what are we doing to be JP: In 2019, we learned about many sustainability initiatives both the short and longer term, we will make an proactive in addressing the likely effects of climate change? under way across the company. What was your favourite even bigger contribution to patients and society KA: We recognise the climate crisis in the world and I’m very achievement during the year? in 2020 and beyond.” motivated by the bold steps we are taking with our Ambition Zero KA: I think my favourite achievement was the work we are doing Pascal Soriot, Executive Director and CEO Carbon initiative. In January 2020, we announced our plans to be to increase public and employee awareness of the environment’s carbon free in our operations by 2025 and carbon negative across impact on health. We support the UN’s Sustainable Development our entire value chain, which includes all our suppliers too, by 2030. Goals (SDG). SDG 3 is about Good Health and Wellbeing, and we To create a carbon negative environment across the whole value have contributed directly to the work of the UN Global Compact chain is very ambitious and will require a lot of collaboration. We on Healthy Planet, Healthy People which was published during will have to work with suppliers locally, distributors and others; and the 2019 General Assembly. I think we are equipped to address engage marketing companies to look at their own impacts, own the the environmental impact on health, because of course it has to plans and come up with ideas. I am happy that we are taking this do with our three therapy areas of CVRM, respiratory and oncology. stand which I think will be strongly supported by our employees It’s also good that we engage with what’s happening with the around the world. climate, because it has a direct impact on health issues that we are trying to tackle.
JP: How do you engage employees in this effort and what role do they have to play? KA: They play an enormously important role, because we rely on employees to not just be activists and advocates at their own sites and communities and in their functions, but also to identify topics that are relevant. I think that our employees feel empowered to identify problems and create solutions. For example, our recent announcement that we are going to plant 50 million trees between now and 2025, was very much inspired by our employee initiatives of tree-planting, also called AZ Forest. Our Healthy Heart Africa Jayasri Prasad (front row, green shirt), and employee volunteers, restored a initiative also came from an employee crowd-sourcing event that Pascal Soriot, CEO (right), and Leif Johansson, Non-executive Chairman of the Board water source in Chennai, India we held for our Values. (left), plant the first trees of a 25 million tree reforestation programme in Australia Sustainability approach Access to healthcare Environmental protection Ethics and transparency Notices
Sustainability AstraZeneca Sustainability Report 2019 8 governance continued Board of Directors Non-Executive Director Geneviève Berger, member of the Science Committee, oversees sustainability matters on behalf of the Board of Directors. The Board reviews the sustainability scorecard each quarter. In 2019, the Board approved including sustainability metrics into the company’s new culture dashboard that it will review.
Senior Executive Team Sustainability Advisory Board AstraZeneca SET members • The Senior Executive Team (SET), Our Sustainability Advisory Board comprises SET EVP Sustainability, Chief Compliance Officer, composed of our company members and external sustainability experts. It met President AstraZeneca AB leaders, is accountable for in 2019 to approve strategic direction, recommend • EVP Operations & IT specific sustainability initiatives opportunities and provide insight. and reviews the sustainability • EVP & President Bio-Pharmacueticals R&D Value created by external advisers scorecard each quarter. • EVP & President International Katarina Ageborg, Executive Each adviser has deep expertise in one or Members convened at a Sustainability Advisory more sustainability fields, spanning climate • Board meeting in London Vice-President, Sustainability EVP Human Resources and Chief Compliance Officer, change, accessible healthcare, operations, President AstraZeneca AB, strategy integration, human rights and product External sustainability experts: • Pankaj Bhatia Sweden, is responsible for the environmental stewardship. This range of overall sustainability strategy perspectives helps us to understand the diverse Deputy Director, Climate Program, execution, including tracking our concerns of external stakeholder groups. The World Resources Institute progress towards targets, and advisers offer insights from other sectors and • Dame Polly Courtice, DBE, LVO industries that we may not have considered liaising with company leadership to Director, Cambridge Institute for Sustainability otherwise. Most importantly, they challenge our ensure our strategy is aligned with Leadership, University of Cambridge business priorities. thinking and push us to see things differently. • Louise Nicholls Managing Director of Suseco and Vice Chair of IEMA (previously Corporate Head of Human “As a new member of the Rights, Food sustainability and packaging at Sustainability Advisory Board, Marks and Spencer PLC) I have been impressed by Senior Executive Team engagement, the level of • Rain Henderson transparency and willingness to act Founder, Elementor Advisors on feedback. It was great to see the robust Advisory Board debate reflected in the new Stakeholders Ambition Zero Carbon strategy.” Throughout the year, we engaged with our workforce and external stakeholders to hear their concerns and feedback related Louise Nicholls, Sustainability Advisory to our current sustainability initiatives and their expectations for the future. See more in the Stakeholder engagement section. Board Member
Healthcare Investors/ Government bodies Patients Communities Suppliers Workforce professionals analysts and regulators Sustainability approach Access to healthcare Environmental protection Ethics and transparency Notices
Global development contribution AstraZeneca Sustainability Report 2019 9
SDG 3 SDG 5 Good health and wellbeing Gender equality
The UN 2030 Agenda for Why it matters SDG targets and Why it matters SDG targets and Sustainable Development is a Non-communicable diseases our contribution Empowering women is essential our contribution universal action plan for a fairer, (NCDs) kill more than 41 million to expand economic growth, safer and healthier world for people each year, equivalent to 3.4 Reduce premature mortality from NCDs promote social development and 5.5 Ensure women’s full 70% of all deaths globally. It is enhance business performance. and effective participation all, including the world’s most AstraZeneca has become a Patron sponsor estimated this will cost the global Women’s equality in the workplace and equal opportunities for of the United Nations Global Compact (UNGC) disadvantaged and vulnerable. economy $47 trillion by 2030.1 could add as much as $28 trillion leadership at all levels of action platform: Business Ambition for Climate It represents the collective actions to global annual gross domestic decision-making in political, and Health the world can take to address Material issues product by 2025.2 It would take economic and public life Disease prevention and treatment, Over 19 million people reached through our 217 years to achieve gender the biggest issues we face as Committed to the Responsible R&D, Investments select Access to healthcare programmes equality in the workplace if all United Nations Women's a global community. in health systems, Environment’s (Healthy Heart Africa, Young Health Programme, things remained equal.3 Empowerment Principles impact on health, Affordability. Healthy Lung and Phakamisa) Success is measured using the 17 Sustainable Material issues 45.4% of senior middle 167 projects in our pipeline as of Development Goals (SDGs). Businesses, Inclusion and diversity, Ethical management roles and above 31 December 2019 governments, non-governmental organisations business culture, Talent and held by women and communities are helping global society AstraZeneca sponsors the Lead2030 Challenge workforce evolution, Human rights, 50.0% of all AstraZeneca make progress towards these goals. As a global for Goal 3 for young people to create health Responsible supply chain. employees are women biopharmaceutical company investing in improving promotion ideas to reduce health risk human health and advancing science, we are behaviours in youth 33.3% of our Board of listening, and we recognise our responsibility Directors are women to contribute to the delivery of these ambitious 3.6 Halve the number of global deaths and and valuable goals. injuries from road traffic accidents
We measure our contribution to society by 31% decrease in the vehicle collision rate of our connecting our company targets to the SDG workforce since 2015, we aim for -55% by 2025 targets. In 2019, we continued our work on the SDGs. Our approach to focus on six SDGs 3.8 Achieve universal health coverage enables us to have a greater positive impact. These six SDGs are the most related to our Over 2,600 health facilities activated core business – health. Health is at the heart or partnered (cumulative) of what we do, and we provide holistic health solutions, ranging from medicines for patients 3.c Increase the health workforce in to workforce wellbeing initiatives. developing countries Over 81,000 healthcare workers trained (cumulative) Sustainability approach Access to healthcare Environmental protection Ethics and transparency Notices
Global development AstraZeneca Sustainability Report 2019 10 contribution continued
SDG 8 SDG 12 Decent work and economic growth Responsible consumption and production
Why it matters SDG targets and Why it matters SDG targets and Inequality is rising globally and our contribution Currently, 40% our contribution there are not enough jobs to keep of the world’s up with a growing labour force. 8.5 Achieve full and population lives in 12.2 Achieve the sustainable management and efficient use Substandard working conditions productive employment and water-stressed river of natural resources are often related to poverty, decent work for all women basins.5 Each year, 18% reduction in our water use since 2015 inequality and discrimination. In and men, and equal pay for nations generate many contexts, vulnerable groups work of equal value 1.3 billion tonnes 50% of active pharmaceutical ingredient (API) syntheses met – such as workers with disabilities, of waste, a number resource efficiency targets since 2015 100% of countries where we women and migrants, among that is expected to operate were evaluated for others – face significant obstacles double by 2025.6 local living wage performance 12.4 Achieve the environmentally sound management of in accessing decent work and may (as of 2018) Waste includes chemicals and all wastes, and reduce their release to air, be particularly at risk of abuses.4 chemicals that water and soil 83% of respondents to can accumulate in 100% of API discharges from AstraZeneca sites assessed as safe7,8 Material issues our employee survey said water sources and Workforce wellbeing and safety, they have opportunity for impact wildlife and 97% of API discharges from suppliers demonstrated as safe8 Talent and workforce evolution, development and growth human health. Ethical business culture, Human 12.5 Reduce waste generation through prevention, reduction, rights, Responsible supply chain. Material issues 8.8 Protect labour recycling and reuse rights and promote Product safe and secure environmental 11% increase in our waste since 2015 stewardship, working environments 44% of total waste is recycled for all workers Greenhouse Gas emission reduction, 26% decrease in Process Mass intensity for development Increased supplier Pharmaceuticals in portfolio in 2019 assessment – 89% spend the environment, through our third-party Water stewardship, 12.6 Encourage companies to adopt sustainable practices and risk management programme Waste management. to integrate sustainability information into their reporting cycle
41% reduction in reportable 89 manufacturing partners with 131 sites were evaluated injury rate from 2015 baseline for overall sustainability performance using our Supplier Sustainability Framework
12.7 Promote public procurement practices that are sustainable
Partnered with peers to launch the first Pharmaceutical Industry Supplier Diversity Forum in the UK and Europe
A colleague in a Future Lab – designed to accelerate innovation Sustainability approach Access to healthcare Environmental protection Ethics and transparency Notices
Global development AstraZeneca Sustainability Report 2019 11 contribution continued
SDG 13 SDG 17 Climate action Partnership for the goals
Why it matters SDG targets and Why it matters SDG targets and
Since 1970, CO2 emissions our contribution Nearly two billion people our contribution have increased by about have no access to basic 90%,9 with current 13.1 Strengthen resilience and adaptive medicines.12 Public–private 17.17 Encourage and promote atmospheric concentrations capacity to climate-related hazards and partnerships have proved to effective public, public-private measuring at over 400ppm.10 natural disasters in all countries be one of the most visible and civil society partnerships Air pollution is a leading Commitment to zero carbon emissions for manifestations of the power Strategic partner with the cause of lung cancer, Chronic Scope 1 and 2 by 2025 and a carbon negative of collaboration to improve World Economic Forum to Obstructive Pulmonary value chain by 2030 access to holistic healthcare. collaborate across sectors and Disease (COPD), stroke industries to help build a better, and heart disease.11 11% reduction in Scope 1 emissions from Material issues sustainable future 2015 baseline All Joined the Sustainable Markets Material issues 60% reduction in Scope 2 emissions from Council established by His Royal Environment’s impact on 2015 baseline Highness, the Prince of Wales, health, Product environmental to help shape policy and find stewardship, Greenhouse 62% of electricity imports sourced or cross-industry solutions to rapidly gas reduction. generated from renewable sources decarbonise the global economy
25% of our vehicle fleet in Europe, With University of Cambridge North America and Japan is hybrid or Institute for Sustainability Leadership electric, up from 7% in 2018 – we are one of the founding members of The Prince of Wales Global Sustainability Fellowship Programme to attract academics to identify breakthrough SDG solutions
Signatories of the United Nations Global Compact (UNGC) since 2010 and joined as Participants in 2018
Joined the UNGC's Our Only Future and set science-based climate targets across our operations and value chains
Members of the Climate Group's RE100, EV100, and EP100 consortiums for energy efficiency Sustainability approach Access to healthcare Environmental protection Ethics and transparency Notices
Stakeholder engagement AstraZeneca Sustainability Report 2019 12
We value insights from Engaging to shape our priorities – Materiality assessment results materiality assessment stakeholders inside and outside Access to healthcare Environmental protection Ethics and transparency our business. They help us shape, As a responsible business, we continually refine our strategy by examining emerging topics, advance and implement our significant trends and engaging internal and sustainability strategy. external stakeholders. A materiality assessment Disease prevention Product environmental Ethical business culture helps define the social, environmental and and treatment stewardship We actively seek stakeholders’ input, so we can governance issues that matter most to refine our approach to providing solutions that AstraZeneca, and that give our business the Inclusion and diversity Pharmaceuticals improve the health of communities, the planet and opportunity to achieve the biggest positive impact. Responsible R&D in the environment our business culture. To build strong connections In 2018, we worked with an independent Talent and with our stakeholders, we emphasise transparency consultancy to conduct our sustainability materiality workforce evolution and open dialogue, which help us understand assessment, which helped us identify 16 priority Investments in Greenhouse gas diverse perspectives and work together to material issues that maximise our opportunity for health systems reduction improve the lives of patients. Read more about impact. This narrowed our priorities by about half. Workforce wellbeing our in-depth materiality assessment in our Our process was rigorous and comprehensive, and safety 2018 Sustainability Report. given its geographic breadth, depth of input from Environment’s We use a wide range of communication stakeholders and alignment with enterprise risks. Water stewardship impact on health channels with our stakeholders, including digital Responsible supply chain engagements, face-to-face conversations and group settings. Our Code of Ethics guides our approach. You can read more about how Affordability Waste management Human rights stakeholders can raise concerns in the Ethics and transparency section of this report. AstraZeneca’s ability to influence
Low High Sustainability approach Access to healthcare Environmental protection Ethics and transparency Notices
Stakeholder engagement continued AstraZeneca Sustainability Report 2019 13
Featured engagements
Patients Healthcare professionals (HCPs) Suppliers Investors/analysts More than 22 patient advocacy group leaders from Our digital innovation aims to improve dialogue with AstraZeneca Brazil became our first market to In addition to information incorporated throughout across the globe joined AstraZeneca for the first HCPs and pursue health solutions for engagement qualify toward our goal to implement supplier the Annual Report, we share sustainability-related Global Precision Medicine Advocacy Exchange with this group. We launched three new unbranded diversity programmes in 10 new markets outside updates with investors, analysts, ratings agencies in Gaithersburg, MD, US. The three-day meeting disease awareness campaigns, which help HCPs of the US by 2025. and other stakeholders by including content focused on listening to patients for insights into by improving opportunities for dialogue. in a dedicated section within our full year and We hosted the first AstraZeneca Supplier Diversity key priorities within the ovarian, breast, pancreatic quarterly results announcement and presentation. Summit in Brazil, where we met with suppliers and and prostate patient communities and generating We actively engage on sustainability-related topics industry partners to discuss the importance of actions to address them. via one-to-one meetings, regular roadshows, site inclusion and how we can make positive change visits, conferences and events. In the Gulf region, employees created initiatives in the community together. that seek to understand the world from a patient’s Communities perspective including interviews, testimonials, We provided over $870 million in community and advisory boards. Several successful projects investment sponsorships, partnerships and were initiated as a result of these interactions with charitable donations worldwide, including our patients, including severe asthma and cancer product donation programmes and Patient Government bodies and regulators Workforce patients support programmes, asthma patients Assistance Programmes, which make our Ongoing dialogue and partnership with government Colleagues from around the world shared ideas advocacy groups and the first Middle East and medicines available free of charge or at bodies and regulators enable our medicines to and success stories during our 2019 Sustainability Africa region patients website. reduced prices. reach patients. Matters Week. Together, we explored our refreshed An example of our involvement in communities is sustainability strategy and discussed how to CEO Pascal Soriot, spoke with the US Senate the AstraZeneca Healthcare Foundation in the US. further our efforts to continue to make changes Finance Committee on drug pricing, noting, We support Connections for Cardiovascular for the better. “we recognize that the current state of drug pricing in the US healthcare system is not sustainable and HealthSM, a programme for heart health launched Through local activities and global virtual events, that patients are facing increasingly high in 2010. In 2019, it provided $775,000 in grants to we discussed topics from finding patient-centric out-of-pocket costs. We believe that these issues 11 non-profit organisations in the US to prevent ways to improve access to our medicines, to must be addressed urgently, and we hope to be a cardiovascular disease. Learn more on the reducing meat consumption in our cafes to support constructive partner in finding solutions.” Foundation website. the environment and human health.
In our semi-annual Pulse survey, 86% of respondents stated they understand how to contribute to AstraZeneca’s sustainability priorities. Sustainability approach Access to healthcare Environmental protection Ethics and transparency Notices
AstraZeneca Sustainability Report 2019 14 Access to Our material healthcare focus areas
Connection to health: Why: Creating innovative Health is at the heart healthcare solutions and of our business partnerships is essential Disease prevention and treatment for global health Responsible We have R&D a bold ambition: Investments in health systems Work towards a future where all people have Environment’s impact on health access to sustainable healthcare solutions for Affordability life-changing treatment and prevention 19.8m+ $801m people reached of medicines through Healthy donated through Heart Africa, Patient Assistance YHP, Healthy Programmes Lung and Supporting the Phakamisa UN Sustainable (cumulative) Impact Development Goals universal action plan 81,000+ 9.7m+ for a fairer, safer and healthcare reached through healthier world workers trained Patient Assistance (cumulative) Programmes (cumulative) Sustainability approach Access to healthcare Environmental protection Ethics and transparency Notices
Access to healthcare overview AstraZeneca Sustainability Report 2019 15
We are working towards a future Access to healthcare at where all people have We work across our main therapeutic areas to Material focus areas AstraZeneca goes beyond our address non-communicable diseases for patients access to sustainable with unmet needs. We recognise that healthcare Our strategy addresses five health areas, medicines. We provide healthcare healthcare solutions for exists inside systems and we collaborate with as identified by our materiality assessment: solutions along a journey to life-changing treatment experts in these systems to improve health improve health – from prevention outcomes of patients. When it comes to our internal and prevention Disease prevention and treatment and awareness, diagnosis, initiatives, we place a strong emphasis on the role of health in workforce wellbeing and safety, our treatment, to post-treatment. How will we supply chain and environmental stewardship.
do this? Responsible R&D Access to healthcare approach • We help to ensure that our medicines get to people who need them by investing in health Environment’s impact on health systems around the world.
Innovating • We are making changes to address affordability Partnering to help ensure our medicines are accessible. Transforming Investments in health systems • We seek to expand disease prevention and treatment whenever possible, through screenings, awareness programmes and training healthcare professionals. Affordability To deliver life-changing The big picture medicine Health is key to a thriving society. Healthcare is our Key accomplishments core business and at the heart of all we do. The To improve mission of our company is to “push the boundaries • Access to healthcare case studies published access and of science to deliver life-changing medicines.” How in a United Nations Global Compact affordability do we do this? We work holistically at health - from Leadership Brief. prevention and awareness, diagnosis, treatment, to • post-treatment. We identify unmet medical needs Pam Cheng, EVP of Operations, spoke at the For the future in the world, find synergies between these needs United Nations during Climate Week NYC on of healthcare and our scientific knowledge and partner to remove the connection between the health of people barriers to access for people facing a range of and the planet. social and economic conditions. • Access programmes expanded to 6 new countries.
Our Healthy Heart Africa programme has been supporting patients for five years Sustainability approach Access to healthcare Environmental protection Ethics and transparency Notices
Disease prevention and treatment AstraZeneca Sustainability Report 2019 16
Why it matters Description Prevention With health at the heart of our business, we Company activities aimed at preventing the onset Non-communicable diseases seek to prevent disease and support people on and progression of diseases (including NCDs). (NCDs) are the number one cause their path to better health. We do this through: of death and disability globally. 1 Health promotion Business connection They claim the lives of more than 2 Advocacy 41 million people each year, place It is estimated NCDs will cost the global economy 2 3 a significant burden on health $47 trillion by 2030 in lost productivity. This has the Research potential to bankrupt health systems, which make systems and disproportionately prevention and treatment necessary tools to ensure Treatment impact low- and middle-income healthcare is accessible in the future. We are in a For those who have been diagnosed with a populations.1 strategic position to leverage our scientific expertise condition, we strive to ensure access to effective to develop and scale treatment and prevention treatment. We are hard at work, with 167 projects solutions for NCDs. We are a global company in the pipeline as of 31 December 2019. Our work NCDs, such as cancer, diabetes, respiratory and our broad geographic reach gives us this focuses on: and heart disease are chronic and progressive responsibility and opportunity. • Therapy areas - oncology; cardiovascular, conditions that are the result of many different renal and metabolic diseases; and factors – from social, to environmental, to genetic Our work contributes to these Sustainable Development Goals: respiratory diseases. and behavioural. These are no longer diseases of older people. They are appearing in younger • Concentrating our portfolio on our three populations, with more than 15 million NCD main therapy areas – oncology; cardiovascular, 1 deaths considered premature. renal and metabolic diseases; and respiratory diseases.
Approach • Breaking down cultural barriers to improve Disease prevention and treatment occur along treatment adherence. a journey to improve health. Many of our tactics • Collaborating with experts at leading include elements of both. We put our commitment organisations to better understand diseases to health into action through internal prevention and accelerate drug development. and treatment initiatives with our workforce, as well as external programmes with our patients and partners. We are energised by the promising outlook of alternative ways of providing healthcare, such as integrating digital solutions into the patient experience through wearables. See more in Investments in health systems and Workforce wellbeing and safety. Sustainability approach Access to healthcare Environmental protection Ethics and transparency Notices
Disease prevention AstraZeneca Sustainability Report 2019 17 and treatment continued
Sustainability in action Targets
Young Health Programme A step on our journey to Empowering asthma HCPs (YHP) of AstraZeneca eliminate cancer and patients with knowledge Many NCDs are influenced by a set of defined Lung cancer is the leading cause of cancer-related Nearly 70% of adults with asthma may have too 4 risk factors: tobacco use, the harmful use of death. It claims a life every 18 seconds , and only many cells called eosinophils. Having too many 2020 target 2019 update Maintain YHP in current YHP has reached alcohol, unhealthy diets, physical inactivity and one in five people are alive five years after initial eosinophils can lead to more asthma attacks 5 active markets and 18 markets. We added exposure to air pollution. Approximately 70% diagnosis. and worse outcomes for patients. Unfortunately, expand into two new four new markets of premature deaths from NCDs can be linked We have a bold ambition to eliminate many patients and physicians are not aware 3 markets to behaviours that started in adolescence. lung cancer as a cause of death. of the role that eosinophils have on asthma Our Young Health Programme addresses this control and therefore do not test for them. To situation. In 2019, YHP reached almost 1 million We know that we cannot do this alone, so we have help bridge this gap and empower patients to Status: On plan young people with health information on NCDs partnered with experts to find the best possible have a different dialogue with their physician, the and risk behaviours and trained more than solutions for patients by joining The Lung Ambition team launched a free blood test for patients to check their eosinophil number. Patients take this 8,500 peer educators and healthcare workers. Alliance, a collaboration with the International 2020 target 2019 update Association for the Study of Lung Cancer (IASLC), information to their physician which can improve We launched new programmes in Myanmar, Reach 3.5 million young We surpassed our 2020 Guardant Health, and the Global Lung Cancer the dialogue and get them on the right track to Mexico, Thailand and Vietnam, bringing the total people through YHP target early and have set a Coalition (GLCC). The objective is to double the better asthma control. number of countries with active programming (cumulative) new one to reach 5 million five-year survival rate for lung cancer patients. to 18. Learn more here. young people by 2025. We The Alliance illustrates our patient-centric mindset, renewed our commitment meaning we focus on the experience of the patient Status: Achieved to YHP with a pledge of and understanding what is most important on Nearly 70% $35m to continue the their path to wellness. This begins with prevention of adults with asthma programme through 2025 and awareness and The Lung Ambition Alliance may have too many cells and with the addition of a is focused on raising awareness of the strong called eosinophils new partner, UNICEF evidence for screening, addressing barriers to early detection and increasing diagnostic accuracy. It also supports our oncology strategy to become a global leader in lung cancer, building on our successful portfolio and pipeline of innovative medicines to treat the most lethal form of cancer. Many ways to impact disease outcomes Many of our Access to healthcare programmes include a dimension of disease prevention. For example, our Healthy Lung programme raises the profile of respiratory disease and Healthy Heart Africa educates YHP in Brazil @Marco Betti for YHP on hypertension risks. See more in Investments in health systems. Sustainability approach Access to healthcare Environmental protection Ethics and transparency Notices
Disease prevention AstraZeneca Sustainability Report 2019 18 and treatment continued
Challenges Highlights
Many of the factors that impact NCDs, such Act on diabetes – closing the gap between Investing in research for policy as smoking, drinking, sedentary lifestyles and guidelines and clinical practice We commissioned the Economist Intelligence Unit poor diet, can result from lifestyle choices or In October 2019, 70 clinicians, policy-makers, to evaluate national policies for NCD prevention other social and environmental determinants government and patient advocacy group in youth. The result – the NCD Policy Scorecard of health. This means that we must look at the representatives from 15 European countries – found that social determinants of health are a entire system involved in NCDs, understand the attended the European Diabetes Policy Summit key contributor to growing NCD rates. interconnections and engage a wide range of in The Hague, organised by AstraZeneca stakeholders. Taking a systemic approach requires in partnership with Primary Care Diabetes time, especially to cultivate impactful relationships. Europe. The aim of the meeting was to The health benefits of prevention and treatment discuss evidence-based better practices in can often take many years to materialise, meaning policy-making to prevent cardiovascular disease the outcomes are not immediate. We need to and its complications in people with diabetes and find a way to continue to integrate prevention to effectively implement existing clinical guidelines. into our business model in order to address this Supported by AstraZeneca, the European Expert issue comprehensively. Declaration Closing the gap between clinical “Addressing risk factors guidelines and real-life practice was launched in adolescents will require at the meeting. governments to look at the entire environment young people are living in, including the food they eat, the areas they live in and the air they breathe.” Addressing non-communicable diseases in adolescence report, The Economist, Intelligence Unit Sustainability approach Access to healthcare Environmental protection Ethics and transparency Notices
Responsible research and development AstraZeneca Sustainability Report 2019 19
Why it matters Business connection • Increase the number of people we reach with our Sustainability in action medicines by addressing unmet medical needs. Continuous innovation and a Responsible R&D is good business because it Accelerating access to infants drives us to innovate, establish new and expand • Consider diverse geographical selection for long-term perspective are critical existing partnerships, venture into new markets clinical trial development, including low- and We prioritise public health by introducing new to address evolving current and and develop new medicines. middle-income countries. treatments and preventive options to vulnerable populations with unmet medical needs. We show future public health needs. • Our work contributes to these Sustainable Development Goals: Provide early access and continued post-trial our commitment to this through our participation access for clinical trial participants. in the European Medicine Agency’s (EMA) PRIority Non-communicable diseases (NCDs) are the • Collaborate to advance scientific understanding MEdicines (PRIME) scheme. PRIME offers early greatest cause of death worldwide.1 We know that and build local capacity for R&D. support to developers of promising medicines to even as we strive to use the most effective means accelerate evaluation and expedite patient access. • to reach as many people as possible, we have a Consider how our products will affect the In 2019, the EMA granted us our first eligibility for long way to go. Today, we have a mature portfolio Approach populations they intend to treat within the R&D PRIME for an immunisation to prevent an infection designed for unmet medical needs, and we drive phases, through our work on product safety and caused by respiratory syncytial virus (RSV). To be pipeline focus on creating innovative medicines Cross-functional pipeline governance teams meet product environmental stewardship. eligible for PRIME, medicines must target an including in low- and middle-income countries, regularly to continue development of an innovative • Integrate access considerations into project unmet medical need and show potential benefit and appropriate for use in local contexts. product portfolio approach to drive global health pipeline governance. for patients based on early clinical data. outcomes by: Description • Invest in science and technology, such as What is the significance of the unmet medical 1 Addressing unmet medical needs and digitalisation and precision medicine, which need we are addressing? RSV is the most common barriers to patient experience. Company stewardship in the development of can help reduce infrastructure costs and cause of LRTI in infants worldwide, and 90% of babies are infected with RSV in the first two years a responsible product portfolio strategy to drive 2 Increasing the speed and breadth of ensure patients receive the treatment they of life.2 This medicine is being developed for use global health outcomes, e.g. addressing unmet patient access. need most effectively. medical needs, investing in neglected diseases, in all infants, whereas the current standard of care • and embedding environmental predictors of disease 3 Driving excellence in product Consider the range of ethical patient is for high-risk infants. Additionally, it is being state, especially to improve the access and efficacy life-cycle management. access issues that arise from biological developed as a single dose administration during of medicines for vulnerable populations. and medical science. the RSV season compared to monthly injections 4 Striving to understand long-term impacts with the current standard of care,3 which can of scientific advances. These activities help us reach more patients by taking a comprehensive view of the R&D process. improve the patient experience as well as decrease AstraZeneca has a variety of medicines available waste. We are demonstrating SDG 17 Partnerships in the pipeline and we recognise the positive Responsible R&D is closely related to other for the Goal – by collaborating with Sanofi Pasteur societal benefits these medicines can have for areas of our sustainability strategy, including to bring this medicine to patients. patients. In 2019, we have worked to advance our Affordability, Investments in health systems, The PRIME team discussing geographic spread of the project approach and identify innovations. We engage in Product environmental stewardship and activities aimed to: Ethical business culture including bioethics. Sustainability approach Access to healthcare Environmental protection Ethics and transparency Notices
Responsible research and development continued AstraZeneca Sustainability Report 2019 20
Sustainability in action AstraZeneca scientists challenge The hub in India operates in partnership with the National Association of Software sex bias in research Health Innovation Hubs in emerging and Services Companies (NASSCOM). It is home to a local accelerator programme AstraZeneca scientists are raising awareness of an markets increase access to healthcare for health-tech start-ups. In 2019, we ran a hackathon in partnership with the Indian imbalance in preclinical research: animal studies Our seven Health Innovation Hubs in emerging Government and the Embassy for Sweden, to identify start-ups we could collaborate predominantly favour one gender – males. Their paper markets focus on bringing AstraZeneca employees with to build patient-centric solutions. Tricog, a start-up partner, created one such is a call to action to include female animals and cell from Digital, R&D and Commercial together in solution called Heart Beats that addresses local demand for early diagnosis and lines throughout the preclinical study design. It has reimagining how we can improve patient outcomes. intervention for heart attack patients, by enabling cloud-based artificial intelligence long been recognised that gender-specific differences The vision is to create and strengthen partnerships diagnosis of electrocardiograms. This technology routes patients to the nearest cath can affect disease progression and treatment; however, to accelerate innovation, increase access to lab, resulting in more accurate diagnoses and improved patient outcomes. sexual bias in the preclinical study design continues. healthcare and improve outcomes for society. Tricog has also signed a partnership with our China hub. Sex bias has been highlighted as one potential These hubs in emerging markets form part of contributing factor for the poor replicability and our AstraZeneca Global Health Innovation Hub translation to human studies. This bias even persists Network. The first emerging markets hub opened in preclinical research for female prevalent diseases. in Russia in 2018, and subsequently in Brazil and The paper discusses the cultural dynamics that create Taiwan. In 2019, hubs were opened in Argentina, significant barriers to change, and leadership must China, India and Hong Kong. be the catalyst to drive a culture which encourages disruptive thinking. Read more on our website.
Tricog in action
Russia
China Taiwan India Hong Kong
Brazil
Argentina Sustainability approach Access to healthcare Environmental protection Ethics and transparency Notices
Responsible research and development continued AstraZeneca Sustainability Report 2019 21
Sustainability in action Progress Challenges While we have made promising developments Precision medicine and diagnostics in biologics, these present challenges related Precision medicine aims to transform patients’ lives • We are working with liquid biopsy to oral administration and cold chain storage through personalising treatment. We use individual specialists at Guardant Health to develop when it comes to providing access to care. characteristics to match treatments to patients blood-based companion diagnostics for 35 diagnostic tests To address these issues, we are continuing to most likely to benefit. Our precision medicine our cancer treatments, including tests to Since 2014, we have launched five precision medicine push the boundaries of science by exploring approach uses a broad range of technologies, measure tumour mutational burden. therapies linked to 35 diagnostic tests. novel formulations and delivery technologies such as tumour tissue diagnostics, molecular tests in our development processes. This process • We are enthusiastic about developing and point of care diagnostics. Since 2014, we have is highly complex and introducing any major technologies that can detect disease at an launched five precision medicine therapies linked 1 PRIME project changes takes time to embed and gain buy-in. early stage. For example, we are exploring to 35 diagnostic tests. The EMA’s PRIority MEdicines scheme offers early certain tests based on circulating tumour support to developers of promising medicines to Highlights • We have invested over $230M in diagnostic DNA to measure minimal residual disease in accelerate evaluation and expedite patient access. partnerships and have made investments in colorectal cancer, which could lead to patients Embedding access into our pipeline process precision medicine across all therapeutic areas being matched to novel treatments earlier than 7 Access to healthcare has been formally integrated and phases of clinical development although normal, when they are more likely to respond. into the project pipeline governance process. Health Innovation Hubs in emerging markets most progress so far has been in treatment bring AstraZeneca employees from Digital, R&D In 2019, revisions to the Target Product Profile (TPP) for cancer. and Commercial together to reimagine how we went into effect, requiring all projects preparing can improve patient outcomes. for Phase 2/3 investment decisions to include • We partnered with Myriad Genetics to gain Access to healthcare considerations into the project FDA approval for a test to identify patients governance review. A TPP is a document that is with metastatic pancreatic cancer who might used to facilitate the drug development process benefit from targeted treatment. This is the first and streamline approval from regulatory agencies. companion diagnostic test approved in this It includes drug labelling concepts and goals and aggressive disease where there are few new is developed with the commercial goals in mind. treatment options available to patients. The TPP optimises therapeutic benefit, clinical study design, and commercial marketing strategy.
Since 2014, we have launched 5 precision medicine $230m+ therapies invested in diagnostic partnerships Sustainability approach Access to healthcare Environmental protection Ethics and transparency Notices
Environment’s impact on health AstraZeneca Sustainability Report 2019 22
The good news is that the benefits from Approach Sustainability in action Why it matters reducing our environmental footprint can be The connection between the realised – positive impacts to human health Our strategy on this issue is Healthy Planet, Health is can take effect within a few years of reducing Healthier People. This recognises that the health Everyone’s Business health of the planet and people emissions and modifying environments. of our planet and the health of people do not exist is clear. Environmental factors – in isolation; they are connected. Our approach A cross-industry initiative, the United Nations (UN) the air we breathe, the water we This can in turn prevent certain diseases, such as follows that by contributing to a healthy planet, led group 'Health is Everyone’s Business', drives 5 progress on Sustainable Development Goal 3 – drink, the soil we depend upon, COPD, lung cancers, stroke and heart disease. we can improve the health of people. In 2019, this strategy was launched to address our Good Health and Wellbeing – as part of the UN the climate we live in – impact Description environmental impacts from the beginning of our Global Compact. A result of this collaboration is the health of humans. research process to cross-sector collaborations the Business Leadership Brief for Healthy Planet, Company efforts to prevent disease and improve for improved planetary health. Healthy People which outlines concrete actions for companies to embed health and empowerment in The World Health Organization estimates that health outcomes by addressing environmental their operations. This brief includes case studies nearly 13 million people die each year from determinants of health. These determinants from AstraZeneca that highlight our work on environmentally related health risks, including include climate change, air and water quality, the the connection between a healthy planet and 7 million people from air pollution alone.1 Air built environment, the environmental dimension of healthier people. pollution can cause respiratory diseases;2 in fact, antimicrobial resistance (AMR), among others. air pollution has been recognised as the second leading cause of non-communicable disease Business connection (NCD) deaths worldwide, behind tobacco smoke.3 “Our collective response Pam Cheng, EVP Operations & IT, spoke at the launch panel event With health at the heart of our business, we have a to climate change over for the Brief at the United Nations General Assembly (UNGA) Climate The climate crisis poses risks to public health, responsibility to raise awareness of the connection Week in New York City, New York with rising global temperatures now contributing the next 10 years will define between the health of the planet and human health. health and wellness globally for to increased effects from respiratory and By supporting healthy environments, prevention cardiovascular disease, impacts from extreme and mitigation efforts contribute to a healthier generations to come. We do not weather, food insecurity, changes in water-borne workforce and can also benefit the healthcare have the next 50 years to make and vector-borne illnesses, increasing allergens, systems our business relies upon by slowing the a difference, the time is now.” as well as mental health effects. People in low- incidence of disease on a global scale. and middle-income countries are disproportionately Pam Cheng, impacted, which exacerbates pre-existing Our work contributes to these Sustainable Development Goals: EVP Operations and IT inequalities of disadvantaged groups.4 Sustainability approach Access to healthcare Environmental protection Ethics and transparency Notices
Environment’s impact on health continued AstraZeneca Sustainability Report 2019 23
Sustainability in action Progress Sustainability in action
Turning waste into clean energy Incorporating environmental data – social and environmental impacts to help patients with asthma Indoor and outdoor personal exposure to air There are health, environmental and social Three hundred million people live with asthma pollution combined are the greatest environmental benefits to this initiative. Substituting the use AMR worldwide, yet 5–10% of patients with asthma risk factors for mortality, responsible for 6.4 million of wood as solid fuel protects local forests Industry Alliance publishes safe discharge limits for cannot achieve symptom control with existing 6 deaths in 2015 (11% of global deaths). In Africa, from overexploitation. antibiotic production based on an approach published therapies. In one study, patients with severe air pollution causes about 780,000 premature by AstraZeneca In the 38 households surveyed before and after uncontrolled asthma used sensor and connected deaths per year.7 their biodigesters were installed, two-thirds of devices to better understand their personal disease To address this reality, we launched a pilot families reported that their health had improved 100% experience and triggers, with a goal of creating of our Young Health Programme new country project at Lake Victoria’s Dunga Beach in with less eye pain, fatigue, flu and asthma, and a predictive algorithm that would enable patients programmes in partnership with Plan International to self-manage their condition and modify risk Kenya to transform waste into clean energy. fewer coughs, headaches and back problems will include air pollution as a topic of focus In collaboration with the Cambridge Institute (from carrying wood). Indoor air quality in factors for an improved quality of life. In addition for Sustainability Leadership (CISL), the goal is 12 households in the community (eight with to other biomarkers, the measured triggers include to prevent exposure to air pollutants by offering a biogas and four without) demonstrated that carbon Case studies environmental data such as air quality index, pollen substitute to wood-burning cookstoves. The project monoxide emissions were reduced. Households Access to healthcare case studies published in a level and allergens, and weather data. United Nations Global Compact Leadership Brief introduced an innovative biogas technology, in saved around $19 (1,980 KSh) per month from not partnership with the local firm Biogas International buying conventional fuels. This represents as much Ltd. The installation of 50 domestic scale digesters as 10–20% of average income in the community. UNGC provides the daily energy needs for some of the Patron sponsor of the United Nations Global Compact poorer households and two community scale (UNGC) action platform: Business Ambition for Climate and Health 300 biodigesters produce gas on the lake shore for Member of Dunga Beach community using wood-burning cookstove million people commercial use by fish fryers and fish processors. that could be replaced with clean energy live with asthma 2/3 worldwide of the Dunga Beach households surveyed before and after biodigester installation reported health improvements
Air quality, pollen level, allergens and weather are triggers in asthma for some patients Sustainability approach Access to healthcare Environmental protection Ethics and transparency Notices
Environment’s impact AstraZeneca Sustainability Report 2019 24 on health continued
Challenges Sustainability in action Highlights As we look to the future health of the planet and Partnering to understand connection Investing in people and planet-healthy buildings Research on antibiotics in people, it is vital that we strategically plan actions between environment and health of patients Designing workplaces that promote health for the environment and accurately measure the associated impact. In 2019, we collaborated with the Sustainable people and the environment is important to us. Pharmaceuticals can enter waterways via Identifying measurements that systematically Healthcare Coalition on a research project to In addition to applying the Company Minimum patients and our own operations, so we represent the relationship between the planet explore the environmental impacts of treating Sustainability Requirements, AstraZeneca adopts must understand the limits to ensure we and people is a task that requires scientific asthma patients using more sustainable appropriate external environmental assessment are protecting the health of the planet and focus in and across sectors. medicines. The Sustainable Healthcare Coalition tools such as LEED and BREEAM in order to people by not overburdening waterways. is a partnership of healthcare companies and optimise environmental design for future buildings. AstraZeneca and other industry scientists other health agencies that have come together to published a paper that sets discharge address some of the most pressing sustainability Preventing impacts from air pollution in youth As we look to the limits for drug production that protects issues in global healthcare. The project assessed In recognising the impact air pollution has on future health of the the total inputs of treating patients (i.e. medicine, NCD development, our Young Health Programme both human and environmental health. planet and people, it is See our approach to Pharmaceuticals in vital that we strategically greenhouse gas emissions, energy and water) (YHP) has set a target for 100% of new country the environment for more information. plan actions and as well as outputs (waste, water and emissions). programmes in partnership with Plan International accurately measure the The findings show that the use of innovations in to include air pollution as a topic of focus. We The discharge limits set by the AMR Industry associated impact our medicines will not only benefit patients but recognise that the quality of the local environment Alliance follows the recommendations of also creates wider benefit to the environment. can have a profound effect on the health and 8,9 two AstraZeneca papers. These papers welfare of adolescents and this new target show that the environmental organisms advances our YHP prevention work in this area. responsible for 70% of the planet’s primary The YHP programme in China has specifically productivity (carbon dioxide fixation from focused on the environment’s impact on health the atmosphere) are particularly sensitive with a stated objective to help migrant children to antibiotics and need greater protection. protect themselves from air and water pollution, The AstraZeneca approach offers greater and enhance their wider safety, through protection to those organisms that are school-based training. Learn more about YHP helping to mitigate the climate crisis. in the Disease prevention and treatment section.
We have walking paths on some of our campuses which can recharge the workforce physically and mentally Sustainability approach Access to healthcare Environmental protection Ethics and transparency Notices
Investments in AstraZeneca Sustainability Report 2019 25 health systems
Why it matters Approach Sustainability in action The nature of diseases and their risk factors call for Healthcare is provided within Investments aligned with Each model works independently with partners in multi-sector involvement in prevention and control our business model the country of implementation to address different systems that influence who can measures. We work with stakeholders to align on health challenges and health environments, receive care and its quality. our shared objectives and develop interventions We have three core therapy areas – oncology; with the aim of providing a sustainable means that are optimised to address local challenges on a cardiovascular, renal and metabolism; and of fighting hypertension in Africa. HHA, works sustainable basis, while leveraging our experience respiratory. Our investments in health systems The systems comprise patients, families, together with local and global partners to in health programming. This not only enhances are aligned to these therapy areas, to ensure hospitals, clinics, pharmacies, insurance 1) increase awareness and educate around local ownership, but it also enables sustainability connection to our overall company strategy companies, pharmaceutical companies, lifestyle choice and CVD risk factors; 2) train of programme activities. and business model. governments and more. These systems are providers and drive care to lower levels of the complex and need collaboration across and We aim to understand how we can strengthen Cardiovascular healthcare system and 3) facilitate access to low between sectors to create the system-wide healthcare systems while remaining culturally Nearly 30% of African adults were estimated to cost, high quality branded anti-hypertensives, changes necessary to ensure that everyone relevant. We recognise the complexity of healthcare have high blood pressure in 2014, the highest where appropriate. receives equitable, quality healthcare. systems and endeavour to collaborate using our prevalence in any region.1 The Healthy Heart global footprint and scale to partner with diverse Africa (HHA) programme is designed to contribute Description organisations to make this possible. Through to the prevention and control of hypertension and our partnerships, we establish mechanisms decreasing the burden of cardiovascular disease Company contributions to strengthening healthcare for collaboration, for example through joint (CVD) across Africa. Currently in its 5th year of Healthy Heart Africa in Ghana capabilities and infrastructure – particularly in coordination, planning, follow up and agreement implementation and present in Kenya, Ethiopia, developing and emerging markets – to facilitate of a set of core indicators for monitoring and Tanzania and Ghana, the programme supports access to healthcare and improved quality of evaluation, and most importantly we build the sustainable models by working with local health healthcare and outcomes. capacity of healthcare systems to better respond systems. In 2019, HHA expanded into India. to patient needs. Business connection An Access to healthcare working group convenes 13.5m+ quarterly and is chaired by the Global Sustainability blood pressure screenings conducted (cumulative) Our investments support patients on their journey department to enable data monitoring and best to wellness. They also are necessary for us to practice sharing with assurance provided annually cultivate relationships and gain a more intimate 7,200+ by Bureau Veritas. understanding of global, regional and local health healthcare workers trained, including doctors, nurses, community health volunteers and challenges so that we can address gaps by pharmacists (cumulative) developing targeted medicines and treatments. Our work contributes to these Sustainable Development Goals: 750+ healthcare facilities activated, with the establishment of secure supply chains for low cost, high quality branded antihypertensive medicines, where applicable (cumulative) 2.4m+ elevated blood pressure readings identified (cumulative) Sustainability approach Access to healthcare Environmental protection Ethics and transparency Notices
Investments in health AstraZeneca Sustainability Report 2019 26 systems continued
Targets Challenges When we invest in a health system, we strive to ensure a sustainable healthcare system. While we aim to build local capabilities with the hope that markets will eventually gain self-sufficiency, we are aware of 2025 target 2019 update the challenges that some markets face with regards Improve early diagnosis 16.42m people to their healthcare gaps and that their journey to and access to treatment reached (cumulative) sustainability may not be realistic in the near-term. by reaching 25 million people throughout the world through Healthy Highlights Heart Africa, Healthy Investing in emerging markets Healthy Lung Programme in Asia Lung, and Phakamisa Access programmes We recognise the substantial investments that must be made – in infrastructure and people – to reach Oncology • AstraZeneca joined The Lung Ambition patients and close gaps on unmet medical needs. • AstraZeneca India launched Ganga Godavari Alliance, a partnership with the International Status: On plan A few examples: Cancer Screening Programme, an early cancer Association for the Study of Lung Cancer screening programme for women in partnership (IASLC), Guardant Health, and the Global Lung India: with the Indian Cancer Society and Charities Cancer Coalition (GLCC). The objective is to 2025 target 2019 update • Knowledge partner for the new India-Sweden Aid Foundation India (CAF India). It conducts double the five-year survival rate for lung cancer Train 75,000 healthcare 81,000+ healthcare Healthcare Innovation Centre, which aims to specialised screenings for oral, breast and patients. Read more about this story in the workers to strengthen workers trained accelerate the uptake of solutions in clinics and cervical cancer for women who reside in slums Disease prevention and treatment section. health systems (cumulative) hospitals across India, that make healthcare more and resettlement areas as well as workers in throughout the world patient-centric, affordable and accessible. Respiratory through our Healthy certain industries. The objectives are to increase Partnership with the Nasscom IoT Centre of This year the Healthy Lung programme expanded Heart Africa, Healthy • awareness of cancer risk factors and symptoms, Excellence to set up an accelerator to support to the Philippines and Mexico, bringing the number Lung, and Phakamisa reduce the stigma associated with cancer Indian start-ups working in the NCD space. and create positive health-seeking behaviour of markets we are active in to 13. The Healthy Access programmes South Korea: Investments to accelerate for prevention. Lung programme is designed to build local health systems to support the diagnosis and treatment of healthcare, innovation and employment, in • Status: Achieved AstraZeneca Singapore launched Cancer Can respiratory diseases. This includes capacity building line with the government’s recently launched Give. The goal of this initiative is to empower of healthcare professionals, medical infrastructure ‘Innovative Strategy on the Bio-health Industry’. cancer survivors to make a difference in society. and policy advocacy. China: Established a joint-venture fund in partnership We signed a Memorandum of Understanding with with a Chinese investment bank, to invest in Chinese In Mexico, we are a part of a multi-stakeholder the Singapore Cancer Society to demonstrate health-care startups. their commitment to join our efforts to improve strategic partnership to improve the capabilities Vietnam: Five-year investment to accelerate the outcomes and lives of people impacted by of healthcare professionals in diagnosing and healthcare capacity development, R&D and cancer, by supporting our patients across the treating respiratory disease at the Primary Care talent development. entire patient experience. level and generating local evidence to drive better outcomes for asthma and COPD patients in the healthcare system. Sustainability approach Access to healthcare Environmental protection Ethics and transparency Notices
Affordability AstraZeneca Sustainability Report 2019 27
Why it matters Business connection In 2018, we published our Pricing Statement to Sustainability in action provide more transparency into our business model Our medicines help address unmet medical need, Healthcare can be expensive – and the determinants of pricing. We are committed Supporting patient access through improve health and create economic benefits. to a pricing policy for our medicines based on the innovative value strategies often so expensive that it is out Treatments that are targeted and effective as following principles: of reach for many people. well as innovative and personalised, can lower We want to ensure the prices paid for our medicines healthcare costs by reducing the need for more • The agreement on price involves many national, reflect the actual health benefits patients are expensive care, preventing more serious and costly regional and local stakeholders, reflecting factors receiving. A medicine may or may not be effective Reasons for this include gaps in health systems, diseases and increasing productivity. To ensure such as clinical benefit, cost-effectiveness, for every patient and through Innovative Value global inequalities and ageing population as a driver that in the long-term there are resources and an improvement to life expectancy and quality of life. Strategies, we are building new models to make of healthcare costs. By 2050, healthcare costs are infrastructure available to purchase and distribute ourselves accountable and ensure patients are truly projected to be 37% of the GDP in the US and • We believe we share a collective responsibility our medicines appropriately, we must work on benefiting from our products. 29% in Germany. To create more sustainability in with healthcare providers and other stakeholders affordability today. the healthcare system, stakeholders need to work to work together to enable an efficient healthcare What is an Innovative Value Strategy? together. Partnerships will become increasingly Our work contributes to these Sustainable Development Goals: system for patients today and support a pipeline Any agreement that reduces uncertainty of important. Industry, policy makers and payers of new medicines for patients tomorrow. payers (economic or clinical) where access, need to work together to develop solutions, such reimbursement or price is linked to real • as Innovative Value Strategies (IVS) which includes We seek to ensure appropriate patient access world clinical benefit or other agreed terms. paying for performance and outcomes. to our medicines. For example, we have a This includes Value Based Agreements (VBA), leading role in the European IMI ADAPT-SMART Innovative Financial Agreements (IFA) and programme for exploring adaptive licensing. Description Approach Indication Based Pricing (IBP). • We pursue a flexible pricing approach that We stand behind the value of our medicines, The company’s position, policy and performance With health at the heart of our business, we are reflects the wide variation in global healthcare taking on financial risk and reimbursing those on the pricing of medicines, including tiered pricing, making changes to address affordability to help systems. We have developed patient access who pay for our medicines if the medicine does differential pricing, capped pricing, early access ensure our medicines are accessible. The price of programmes that are aligned with a patient’s not perform as expected. We are investing in IVS programmes, Patient Assistance Programmes, our medicines is therefore designed to ensure the ability to pay and healthcare system’s ability to by, for example, working with partners to collect royalty-free licensing, pricing transparency, financial sustainability of healthcare systems and respond. We are committed to the appropriate the data for our medicines that allow us to measure reimbursement strategy, and commercialisation, our research-led business model. Our methodology use of managed entry schemes and the and demonstrate their real-world value. We are strategy, availability and registration. helps us understand the cost of treatment and level development of real-world evidence and we are working with key stakeholders to shape policies of affordability including when patients have to pay investigating innovative approaches to the pricing that promote the implementation of these sorts for their own medicines. We make our medicines of medicines, such as payment for outcomes of agreements, both for our own medicines and more affordable through: received by the patient and healthcare system. those of others. 1 Patient Assistance Programmes tailored to each We have entered into 61 IVS agreements market that can make our medicines available across our three main therapy areas. through donation.
2 Patient access programmes that coordinate with health systems to deliver medicines at lower out-of-pocket costs for the patient (see Investments in health systems section).
3 Our tiered pricing strategy, which considers ability to pay based on GDP. Sustainability approach Access to healthcare Environmental protection Ethics and transparency Notices
Affordability continued AstraZeneca Sustainability Report 2019 28
Sustainability in action Highlights Outcomes
Patient assistance and access Health Economic Analysis Leadership conversations on pricing in Italy and Ireland Our CEO, Pascal Soriot, spoke at a US At AstraZeneca, we have offered affordability congressional hearing this year about pricing. programmes to patients for more than 35 years. Italy We seek opportunities for dialogue on this topic These programmes are available to patients who AstraZeneca demonstrates the added benefit and take feedback from politicians very seriously, 9.7 million people reached by Patient Assistance Programmes meet the eligibility requirements and are designed that a new drug offers patients through health as they represent our patients. Read Pascal's to remove barriers to access and reduce or economics (HE) analysis. All HE analyses are public statement to the US Congress here. eliminate out-of-pocket costs. These programmes conducted in partnership with universities and $801 million can offer free and/or discounted product. scientific societies. An example from Italy is Challenges in product donations through Patient Assistance Programmes Our largest Patient Assistance Programme showing the cost-effectiveness of a preventive We remain committed to working with payers to is AZ&Me in the US, which provides eligible testing strategy in relatives of patients with explore novel and flexible ways to assess and 61 patients with AstraZeneca medicines at no BRCA mutated ovarian cancer versus a no pay for medicines toward our shared goal of 50 value based agreements in the US and 11 in the EU cost. AstraZeneca has provided prescription testing strategy. The evaluation showed how it is delivering the outcomes that matter for patients savings to four million patients across the US cost-effective to include BRCA tests for patients through innovative and personalised treatments. and Puerto Rico over the past 10 years. and family of those with a family history of We are collaborating with payers to conclude breast/ovarian cancer. outcomes- and value-based reimbursement that We have a variety of patient access programmes in improves patient outcomes. Emerging Markets, each tailored to meet the needs Ireland of the local community. These include Terapia Plus AstraZeneca participates fully in the industry in Ukraine, Karta Zdorovia in Russia and FazBem in association agreement on the supply and pricing Brazil, which offer products at a discounted cost. of medicines, committing to:
We are also aiming to enable our Emerging Markets • No price increases. to deliver better and broader patient access through • Upon patent expiry, reduction to 50% of the innovative and targeted equitable pricing strategies original ex-factory price. and practices. By way of example of our approach, we apply Tiered Pricing Principles globally. This • A 5.5% rebate on all public reimbursement defines price levels commensurate with affordability schemes among other initiatives. based on a country’s ability to pay. We believe that this approach to pricing is sustainable and fair, and These commitments have led to savings of millions that it will increase access and improve patient annually, making a considerable contribution to outcomes in Emerging Markets. the affordability of medicines in Ireland and freeing up funding to treat more patients. The current agreement is forecast to deliver substantial savings across member companies within the lifetime of the agreement. In addition, AstraZeneca is currently delivering material net pricing discounts to support the affordability of new high cost medicines in key therapy areas. Sustainability approach Access to healthcare Environmental protection Ethics and transparency Notices
AstraZeneca Sustainability Report 2019 29 Environmental Our material protection focus areas Connection to health: Why: Supporting a healthy The health of the planet environment helps prevent impacts all life Product the onset of certain environmental diseases and improve stewardship health outcomes We have Greenhouse a bold ambition: gas reduction Pharmaceuticals Manage our in the environment environmental impact Water across all our activities stewardship $15.5m 25% 100% and our products, invested by our of our vehicle of API discharges working toward Waste Natural Resources fleet in Europe, from AstraZeneca management Reduction North America sites and 97% from a restorative Governance Group and Japan is hybrid external suppliers in environmental or electric, up from assessed as safe1,2 approach efficiency projects 7% in 2018
Impact Supporting the UN Sustainable 62% 6 Development Goals of our total research sites applied universal action plan electricity use the AstraZeneca is sourced or Green Labs initiative for a fairer, safer and generated from to help reduce the healthier world renewable sources environmental impact of lab practices Sustainability approach Access to healthcare Environmental protection Ethics and transparency Notices
Environmental protection overview AstraZeneca Sustainability Report 2019 30
Global society is depleting some We are taking action now because we recognise Governance Material focus areas the strong connection between a healthy planet of the Earth's natural capital Environmental matters are managed by Katarina and healthy people. With health at the heart of Our approach addresses five environmental areas, 1 Ageborg, Executive Vice-President, Sustainability and 1.7 planets are needed to our business, we work to foster environments in as identified by our materiality assessment: and Chief Compliance Officer, President fulfil humanity's demand on which all life can thrive – seeking opportunities • AstraZeneca AB, Sweden. The guide for our Product environmental stewardship for environmental stewardship and mitigating its ecosystems. The planet's environmental management system (EMS) – • climate impacts by managing natural resources Greenhouse gas reduction life-supporting systems and our global safety, health and environment (SHE) and ensuring environmental safety of our products management principles – is embedded in our • Pharmaceuticals in the environment (PIE) the condition for life are under across our operations and value chain. We envision Code of Ethics. Our approach is set globally and threat. The time to act is now. a future where we help restore our planet to health • Water stewardship implemented locally at our sites in partnership by achieving zero carbon emissions. across functions. We manage performance through • Waste management assurance programmes, including performance See the Environment’s impact on health section for The big picture reporting and internal auditing. more ways we are contributing to a healthy planet Climate change is now a climate crisis. It is Our environmental management is based and healthier people. impacting human health and the biosphere in on frameworks provided by the International increasingly severe ways. The time to act is now. Organization for Standardization (ISO). Our Key accomplishments The United Nations cites addressing climate change environmental approach is compatible with as the century’s greatest global health opportunity.2 ISO 14001, which is a global standard for an • Committed to have zero carbon emissions from We are serious about taking transformative actions EMS. Some of our internal SHE auditors are our operations by 2025 and a carbon negative to protect the climate and our planet's natural trained in ISO 14001. Several operations, R&D value chain by 2030. resources. As a company that follows the science, and commercial sites are ISO 14001 certified: • One of three companies worldwide to achieve we appreciate that evidence-based links between Shanghai, China; Milan, Italy; Macclesfield, double A Listing for Climate Change and Water health and environmental factors are growing. UK; and Gothenburg and Södertälje, Sweden. Security from CDP for four consecutive years. Two of our largest energy and water consuming sites, Gaithersburg, US and Macclesfield, • 90th percentile for the Environmental Dimension UK, are ISO 50001 certified. This means they indicators of the Dow Jones Sustainability Index, have comprehensive energy and water with scores of 100 for Environmental Reporting management systems in place to continuously and 99 for Climate Strategy. identify new efficiency opportunities. • 100% in the climate change category of the To drive our climate action initiatives and meet our FTSE4Good Index assessment. environmental targets, we have a Natural Resources • Reduction Governance Group (NRRGG) fund. Joined the Climate Group's EV100 and EP100 This fund has invested more than $86 million in and committed to having 100% electric vehicle environmental efficiency innovations since 2015, fleet and double site energy productivity by 2025. including $15.5 million for 56 new projects in 2019. We use site water stress assessments and natural resource audits to identify opportunities See Sustainability Data Summary 2019 for more for management and investment. metrics and our progress. Sustainability approach Access to healthcare Environmental protection Ethics and transparency Notices
Our environmental Ambition Zero Carbon towards a restorative approach AstraZeneca Sustainability Report 2019 31
• Carbon • Zero carbon emissions in our operations protection journey 2030 2025 negative • Launch near-zero Global Warming Potential across our inhaler propellants CO2 value chain • 50 million trees planted
36% 18% GHG WATER 2020 reduction in scope reduction in water Setting 2015–2025 1 and 2 GHG use since 2015 2019 and beyond targets emissions since 2015 Confirming our Commitments to double 2016 62% 11% climate action targets environmental efficiency with new GHG WASTE are on track energy, water and waste targets total electricity increase from renewables in waste Science Based Targets Initiative Carbon targets approved by the Science in 2019 since 2015 Based Targets initiative (SBTi) (SBTi) confirms that our carbon targets meet Paris Agreement’s Commitments for Product environmental 1.5 degree scenario stewardship and PIE management guidance RE100 goal to source 100% 18% Supporting suppliers renewable electricity WASTE to implement more robust by 2025 reduction in total waste generated environmental practice 21% since 2010 GHG First company to have an active reduction in pharmaceutical ingredient (API) operational discharge programme for GHG emissions WATER 14% 2014 Seeking external suppliers (excluding inhaler usage) since 2010 perspectives reduction in 2011 9% water use GHG since 2010 Creation of Environmental reduction in Advisory Board with external GHG emissions experts (in 2015 evolved since 2006 into our Sustainability Advisory Board) 40% WASTE
reduction in total waste relative to 2008 sales since 2006 2005 42% 32% CFC WASTE 2001 2010 reduction in emission reduction in waste Greater of ozone depleting relative to sales Considering the substances since 2002 since 2002 transparency environment alongside Reducing Greener drug discovery First public reporting of chemistry in our our contribution environmental data and first Environmental Risk Management processes to ozone layer companywide environmental Plans are introduced to accompany depletion target set Founding member of new medicines along the path to Elimination of Launched a tool for integrating American Chemical Society launch, providing early warning ozone damaging SHE matters into medicine Green Chemistry Institute of medicines that could pose chlorofluorocarbons development Pharmaceutical a potential risk to the Roundtable environment (CFCs) from our inhalers Sustainability approach Access to healthcare Environmental protection Ethics and transparency Notices
Product environmental stewardship AstraZeneca Sustainability Report 2019 32
Why it matters Business connection We are committed to ensuring responsible Sustainability in action environmental management of our products, As we improve our processes, we reduce the AstraZeneca is responsible for its from discovery in the lab all the way through to Sustainable innovation in development cost of goods. This allows us to reinvest in the end of a product's life. We look for opportunities Many of our employees have great ideas about choices in raw materials sourcing, life-changing medicines and improve patient to close the production loop and ensure our how to embed sustainability into our products. manufacture and formulation of access to healthcare solutions. products are contributing to the circular economy. To bring these ideas to life, we launched an initiative active pharmaceutical ingredients Our work contributes to these Sustainable Development Goals: We follow a life-cycle approach that covers all in our pharmaceutical technology and development (APIs), and device and packaging stages of our products: department focused on product innovation. selection. Patients and society API production This initiative empowered employees by offering deserve products that have the and formulation seed funding to develop ideas that create new opportunities to deliver sustainable innovations smallest possible environmental that align to our sustainability strategy and push impact, while not sacrificing disposal Approach (end-of-life device the boundaries of science. Five winners were medical efficacy or safety. As or reuse) production selected with projects aligned to our Environmental technologies and healthcare We evaluate all materials and all processes protection priorities to reduce natural resource used to make our products. By emphasising systems evolve, so too should use and ensure the environmental safety of our the environmental stewardship of our products, products. One proposed eco-friendly plastic solutions to reduce energy and we address other material focus areas including materials in devices and primary packaging. material use, and waste generated responsible R&D, responsible supply chain, greenhouse gases, pharmaceuticals in the We follow a from delivering life-changing life-cycle approach environment, water and waste. So, we strive medicines to patients. that covers all stages to design out negative environmental impacts, of our products A devices team discusses the environmental stewardship of a product including resource depletion, waste, and emissions to air, water and land. Description We use a metric called process mass intensity (PMI) patient packaging Company efforts to identify and address the to measure our efficiency in materials use. PMI is use environmental impact of products from discovery measured as kilograms of raw materials used to in early R&D through to launch of a new product produce a kilogram of the final API. A lower PMI and during its commercial lifetime to end-of-use. means we are using materials more efficiently. distribution We set a PMI target for all small molecules drug projects to achieve at launch, based on projected Once we have identified the impacts of our peak year sales. We are working to set an products, we look for solutions to: equivalent target for our biologics products. 1 Prevent
2 Minimise
3 Render harmless any residual impacts Sustainability approach Access to healthcare Environmental protection Ethics and transparency Notices
Product environmental stewardship continued AstraZeneca Sustainability Report 2019 33
Sustainability in action Targets Challenges
Life-cycle assessment (LCA) Green chemistry in the laboratory – Our product value chains have been identifies smart chemical process Recycled CO replaces toxic substances linear in nature and use raw materials 2 derived from fossil fuels. We have LCA is a tool used by chemical development work to do to understand how we Scientists at our Gothenburg site in Sweden have 2019 target 2019 update scientists to improve environmental sustainability reduced the environmental footprint of a purification could transition to a circular model Develop and pilot a We created a scoring in chemical processing. LCA performance can be process used in pre-clinical and early clinical and more sustainable sources. product environmental methodology for the index, which significantly improved during drug development phase manufacture. This significantly decreased sustainability index helps us rate the environmental through selection of preferred manufacturing Process Mass Intensity (PMI) for most projects and Highlights performance of our medicines technologies, chemistries and control of processing decreased by 80% overall solvent consumption and piloted it for several products Next-generation inhalers steps – an activity known as Process Design. and waste from the laboratory. Status: Achieved Consideration of innovative pharmaceutical Our pressurised metered-dose inhalers manufacturing technologies, such as continuous Purification is a critical step in manufacturing (pMDIs) account for a significant portion processing, can broaden the scope of accessible drug substance of the correct quality. The traditional 2020 target 2019 update of our greenhouse gas emissions. In chemistry, improve process safety and reduce purification process uses expensive and toxic Develop resource Following an organisational response to this, we have committed to energy consumption and cycle times. solvents such as heptane. The lower PMI, solvent, efficiency targets for change, we re-established launching our next-generation inhaler to and waste results were achieved by implementing biologic products our internal cross-functional treat asthma and COPD with near-zero For one of our new CVRM medicines during clinical Supercritical Fluid Chromatography for all green biopharma network to Global Warming Potential propellant trials, Process Design reviewed a traditional batch large-scale purifications. This replaces toxic develop targets by 2025. We will invest to transition our process for a common synthetic intermediate and Status: Lagging pMDI medicines to a next-generation solvents with recycled CO2 captured from the an alternative continuous process. A LCA of both waste streams of other industries. pMDI inhaler. We expect the new options established that the continuous process propellant to have a carbon footprint that offered far superior environmental performance 2022 target 2019 update is 90–99% lower than propellants in older when compared to the batch process across 95% of paper-based We set this new target and pMDIs by offering both next-generation the main criteria. Scientifically robust data is product packaging planning is initiated to engage pMDIs and dry powder inhaled (DPI) valuable for our scientists to be able to make materials used will suppliers and report progress medicines. We recognise that pMDIs timely decisions with confidence. It also justifies be from sustainable are an important therapeutic option for a potential disruption to the development of sources patients, particularly where familiarity with manufacturing processes. LCA results encourage the device, limited lung function, young the adoption of innovative, cleaner technologies or advanced age or reduced dexterity or that could impact several medicines. Status: Not yet started cognition, are considerations.
LCA shows improvements of flow process vs. batch Product carbon footprint minimised For a common intermediate during a 2025 target 2019 update by renewable power purchase medicine's development: Ensure 90% of API There were no in-scope product In line with our RE100 commitment, our syntheses meet launches in 2019. Since 2015, internal manufacturing site for one of our resource efficiency one of two projects have met recently launched CVRM medicines will 82% 92% 88% targets at launch resource efficiency targets at switch to source 100% renewable power less CO2 less water less energy launch. We reduced PMI by 26% in 2020. A LCA has shown that this will (kg/kg) (kg/kg) (MJ/kg) across the late stage portfolio Status: Lagging reduce the annual carbon footprint for a daily dose by 43%. Sustainability approach Access to healthcare Environmental protection Ethics and transparency Notices
Greenhouse gas reduction AstraZeneca Sustainability Report 2019 34 Addressing our GHG footprint in action: Vehicle fleet of AstraZeneca and our suppliers
Why it matters Business connection Approach Greenhouse gases (GHGs) from Addressing this issue is a business imperative, We are decarbonising business now by taking as climate change is projected to have detrimental actions to eliminate GHG emissions from our Avoid human activity are the major cause impacts on workforce health and productivity.3 sites and fleet by 2025 without carbon credits of climate change over the prior An initial study from 2019 on climate physical risks and by becoming carbon negative across our Increase the use of virtual half century.1 Climate change to our activities, indicates the need for detailed entire value chain by 2030. We also seek ways meeting technology to has the potential to reverse the site analysis to prepare for a smart adaptation to to build climate resiliency. avoid some journeys climate related hazards such as droughts, floods As a company that follows the science, we use remarkable global health gains and extended hot periods. As governments set Next step it to inform our climate strategy. We set science- achieved in the past 50 years. and implement emissions targets, we may become based GHG emissions reduction targets in 2015, exposed to transition risks and opportunities, and in 2016 we were one of the first companies for example due to customer demand for low Reduce The good news is that solutions to climate in the FTSE 350 to have them approved by the change have direct and indirect health benefits carbon products. Science Based Targets initiative (SBTi), which Lower the emissions – from reducing air pollution to improving diet – Our work contributes to these Sustainable Development Goals: means that our targets are in line with the level intensity per km driven representing great opportunities to improve global of decarbonisation required to keep global 2 by using electric vehicles health. The time to act on climate change is now. temperature increase below 2 degrees Celsius. In May 2019, we received confirmation from SBTi Next step Description that our GHG Scope 1 and 2 targets are consistent with reductions required to keep warming to Company operations, such as manufacturing and 1.5 degrees Celsius, the most ambitious goal of the Substitute transportation, emit GHGs including carbon dioxide Paris Agreement. Our Scope 3 targets are aligned (CO ), methane (CH4) and hydrofluorocarbons 2 with current best practice. With the launch of our Change the electricity or CO (HFCs), contributing to climate change. Emissions 2 Ambition Zero Carbon strategy in January 2020 we fuel source to a lower carbon from product use are largely discussed in the have accelerated all of our decarbonisation plans. alternative such as biogas Product environmental stewardship section, and or hydrogen fuel we account for this emissions source in our value We use the WRI/WBCSD Greenhouse Gas Protocol chain GHG footprint. guidance to group our sources of emissions into Scope 1, Scope 2, and Scope 3, and we use Last resort the Institute of Environmental Management and Assessment GHG hierarchy approach4 to guide Compensate priority activity (see graphic to the right).
Our greatest source of emissions is Scope 3, which Invest in carbon removal are emissions from our supply chain and product programmes in near-term use. It is also our greatest opportunity to address for our supplier footprint until our climate-related impacts. We use our influence better solutions are available to mobilise our extensive global supply chain to reduce GHGs.
Colleagues gathered to plant 5,000 trees in southern Portugal Sustainability approach Access to healthcare Environmental protection Ethics and transparency Notices
Greenhouse gas reduction continued AstraZeneca Sustainability Report 2019 35
Reducing emissions across our value chain
Our operations (Scopes 1 and 2) are where we have the most control, and through avoiding, reducing and substituting we will ensure zero emissions from our sites and ground fleet by 2025. Across our value chain (Scope 3) is where we can have the biggest impact, but it’s also where we have the least control. Ambition Carbon Zero outlines how we will build on our current progress to become carbon negative across our entire value chain by 2030. Sustainability in action Our operations Our value chain Our Ambition Zero Carbon Our Ambition Zero Carbon strategy is to take climate action now for healthy people and a healthy planet, by becoming carbon negative across our entire value chain by 2030. Where our Fuel consumption in Patient use of pMDI Key sources of All remaining emissions emissions our fleet and at our inhalers releases HFC emissions: Waste sources as defined by Zero carbon emissions from our occur sites, imported energy, propellants that have incineration, key API the GHG Protocol, areas process emissions high climate impact and formulations and over which we have global operations (sites and fleet) packaging suppliers, least influence by 2025 without offsets freight and logistics, business air travel Double energy productivity by 2025 Percentage of total carbon 100% electric vehicle fleet by 2025 emissions 5% 13% 7% 70% in 2019 Use 100% renewable energy for power and heat by 2025 Reduction Carbon negative value chain from 2015 baseline by 2030 -36% +45% +11% -2%
Launch next-generation respiratory inhaler to treat asthma and COPD with We work to • Design modifications • Near zero climate impact • Waste reduction • Engagement to set near zero climate impact propellants avoid, reduce, for processes and inhaler R&D by 2025 targets and circular Science-based Targets by 2025 substitute, buildings • Zero carbon economy ambitions and reduce at source; and compensate • EV100 manufacturing by 2025 • Supplier framework for LCA for identification (in our value of key hotspots for Advocate for policy and • EP100 Science-based Targets chain) greater engagement cross-industry solutions • RE100 initiative and RE100 • AIR2SEA programme for freight Plant 50 million trees to absorb • Virtual meeting CO2 from the atmosphere technology use and GHG dashboard for senior leaders
5% Scope 1 & 2 95% Scope 3 Sustainability approach Access to healthcare Environmental protection Ethics and transparency Notices
Greenhouse gas reduction continued AstraZeneca Sustainability Report 2019 36
Sustainability in action Our Only Future Targets We're one of 87 companies that has responded The road to a healthy planet and to a call-to-action on climate by the United healthier people through our fleet Nations Global Compact (UNGC). As part of this group, we have committed to set climate targets We joined The Climate Group's EV100 electric 2022 target 2019 update 2025 target 2019 update transport initiative and EP100, its energy across our operations and value chains aligned Maintain operational Operational GHG Reduce energy Energy used was productivity initiative. We also belong to The with limiting global temperature rise to 1.5°C GHG footprint no footprint totalled consumption by 10% 1,749 GWh, a 4% Climate Group’s RE100 initiative where our goal above pre-industrial levels and reaching net-zero greater than 2015 levels 1,975 ktCO e, an against a 2015 baseline decrease is to source and use 100% renewable electricity emissions by no later than 2050. The Our Only 2 increase of 7% globally by 2025; we are currently at 62%. We Future campaign is a natural step on our carbon are the 50th company to join EV100 and the first strategy, as our targets were previously below Status: On plan Status: On plan pharmaceutical company to join all three of the the 2°C level. groups. By 2025 we expect to have 16,000 electric A full description of our GHG emissions vehicles, with the switch saving the planet over 2025 target 2019 update Challenges methodology is in our Sustainability Data Summary. 100% renewable power 62% of our total 80,000 metric tonnes of CO2 every year. consumption by 2025 electricity use is We are committed to following a pathway to negative This new commitment builds on our existing Green globally with an interim sourced or generated emissions across our value chain by 2030, and sooner Fleet initiative, where we committed to achieve a target of 100% in the from renewable where possible for specific emissions sources. This will 100% hybrid or EV fleet in Europe, North America EU and US by 2020 sources only be achievable by engaging suppliers to reduce their and Japan by 2025. As of the end of 2019, we are direct emissions and working to implement carbon removal at 25%. We are installing the necessary charging options that will lead to more CO2 being removed from the infrastructure with charging points in Sweden (280), Status: On plan atmosphere than added to it. The scale of engagement US (104), UK (30) and 9 rapid-chargers at our necessary to make urgent progress on the decarbonisation Netherlands offices. pathway across our value chain is unprecedented. 2025 target 2019 update “Recognising the link between a healthy 100% hybrid or electric 25% of our fleet Highlights environment and human health, we vehicle fleet in Europe, in North America, North America and Europe and Japan CDP Climate Change 'A' List believe that by investing in electric Japan is a hybrid or We earned an 'A' List rating for the 4th consecutive year from vehicles and emissions-reduction electric vehicle CDP for climate change performance and transparency. initiatives, we can help reduce the Status: On plan burden of respiratory diseases and What is your food footprint? other air pollution-related conditions.” The food we consume contributes to climate change, but the actual carbon footprint is usually invisible. Katarina Ageborg, EVP, Sustainability 2025 target 2019 update We make your carbon food footprint visible in our Achieve science-based 11% reduction in Gothenburg cafeteria. All dishes are labelled based on their carbon emissions absolute Scope 1 carbon footprint. This gives our workforce the knowledge reductions from 2015 emissions; 60% to choose dishes with lower impact. The initiative is led by baseline reduction in absolute Sodexo in cooperation with Klimato. Scope 2 emissions; 2% increase in See Sustainability Data Summary for full metrics Status: On plan Charging stations are available at many of our sites globally Scope 3 intensity and methodology. Sustainability approach Access to healthcare Environmental protection Ethics and transparency Notices
Pharmaceuticals in the environment AstraZeneca Sustainability Report 2019 37
Why it matters Description Approach Targets Trace amounts of Patient excretion, improper disposal of We are committed to the health and safety of unused medicines and discharges from drug the planet and people. We must understand and pharmaceuticals have been production result in the release of APIs into the manage PIE to ensure that our medicines cause detected in the environment for environment. Potential impacts include effects no negative impacts on the environment. 2025 target 2019 update on wildlife and human health from low-level more than 20 years. In most cases We lead our industry in the management of Lead the industry • EPV programme and long-term exposure. this does not cause a problem; PIE-related concerns. We are the only company with to manage to monitor product however, the presence of some published targets describing safe discharge limits pharmaceuticals in risks post-launch Business connection the environment ran through 2019 pharmaceutical residues in the for drug production and formulation facilities that are externally verified. We were the first company to with no significant We must determine the risks associated with environment have been implicated publish environmental risk assessment (ERA) data risks identified pharmaceuticals in the environment (PIE) to Status: On plan in impacts on wildlife. on our website. We are the only company with a ensure the safety of our products throughout • Co-authored published approach to ecopharmacovigilance (EPV). their life-cycle, from drug discovery and drug 12 peer-reviewed EPV ensures that we follow the science and review Pharmaceuticals enter the environment mainly manufacture, to regulatory approval, patient use publications on PIE emerging information that might change the way we when medicines are excreted by patients and disposal. If we do not manage these risks, assess and manage the environmental risks of our • 100% of API and end up in our waterways and in sewage and one of our medicines were to pollute and medicines. Learn more in our EPV Video. discharges from sludge applied to land as a fertiliser. Waste adversely impact the environment, this could AstraZeneca sites from manufacture and formulation of active incur reputational damage and financial losses In many cases, our APIs are not detected in the demonstrated pharmaceutical ingredients (APIs) and the improper that could take resources away from producing environment. When our APIs have been detected, as safe1,2 disposal of unused medicines also add to the our life-changing medicines. Environmental we concluded, by using established scientific trace levels of pharmaceuticals in rivers, lakes, hazards and risks also have the potential to approaches, that in almost all cases these APIs • 97% of API soils and, in some instances, drinking water. restrict patient access to medicines. currently pose low or insignificant environmental discharges from This topic is gaining increased attention on the risk. However, there can be some location-specific globally managed Our work contributes to these Sustainable Development Goals: international stage. The United Nations has environmental risks for particular pharmaceuticals, direct suppliers identified pharmaceutical pollution as an emerging especially in regions where there may be inadequate demonstrated global priority under its Strategic Approach to sewage treatment and high populations of people as safe1 International Chemicals Management. discharging waste into rivers with low dilution conditions. Our ongoing EPV will monitor whether API Plant in Macclesfield, UK increases in the global population, urbanisation or changes in disease epidemiology and demographics will change these risks in the future.
We know we do not have all the answers so we look externally to stimulate conversations and research to encourage responsible and collective action.
For more information see our PIE Position Statement or the Product environmental stewardship section. Sustainability approach Access to healthcare Environmental protection Ethics and transparency Notices
Pharmaceuticals in the AstraZeneca Sustainability Report 2019 38 environment continued
Sustainability in action Innovative Medicines Initiative Challenges Highlights (IMI) on PIE The continued presence of drug residues in the Reducing fish testing Stakeholder engagement in Kenya The IMI is a public-private partnership between environment is causing concern for the industry. Data published by an AstraZeneca partnership In partnership with the University of Cambridge the European Commission and the innovation- As limits of detection in environmental chemistry contributed to the revised EMA ERA guidelines that Institute for Sustainability Leadership, we convened based pharmaceutical industry (Efpia). In June improve over time, more drugs and other chemicals remove the need for fish testing for antibiotics. stakeholders in Nairobi, Kenya to discuss PIE in 2019, the five-year IMI Intelligent Assessment are likely to be detected in a wider range of the context of developing economies. Participants of PIE (iPiE) project concluded. Notable drinking, surface and ground waters as well as soils Ecopharmacovigilance visualisation included government and inter-governmental achievements that AstraZeneca contributed and sediments. This will require a wider societal Prototype EPV data visualisation tool developed agencies, non-governmental organisations, towards include: discussion on the environmental and human health with Simomics using an Innovate UK grant. academia and industry with responsibilities for risks that this poses. • A high quality database on APIs (iPiESUM), Scientific papers published to advance the management of healthcare and environmental including mainly industry sponsored studies There are increasing regulatory pressures including PIE management: resources. These discussions focused on actions for environmental fate, effects and behaviour proposals from the European Parliament and the • The largest compilation of ERA data for human needed to manage the environmental risks posed of APIs, which had not been publicly OECD to include environmental hazard and risk medicinal products covers environmental toxicology from the increased use of pharmaceuticals in accessible previously. within the approval of new medicinal products. This data and associated consumption-based low- and middle-income countries, especially poses some challenges to the current regulatory environmental risks for over 120 APIs in Europe. considering that access to healthcare is increasing. • A review of the consumption-based and industry approach as ERAs are inherently In many cases, adequate environmental environmental risks for more than 120 APIs • Description of the environmental risks of metformin conservative, i.e. they over-estimate environmental infrastructure and regulation is not in place to across Europe highlighting that, even with and its transformation product guanylurea. exposure and risk in up to 95% of cases; and manage some of the environmental risks that worst-case exposure assessments, less than ERAs are conducted late in drug development after • patient access poses. The aim of the workshop 5% of drugs posed an environmental risk. Applying machine leaning to predict significant investment and once patient efficacy was to create a common vision, shared goals The review highlighted significant data gaps bioconcentration in aquatic invertebrates. and safety have been established. There are also and an action plan to help ensure that access for some modes of action. • calls to backfill ERA data for drugs approved before Two papers focus on emerging markets. to medicines is managed in an environmentally • A review of prioritisation approaches 2006 when the current EMA ERA guidelines came sustainable manner. Access to healthcare, together – Predictive modelling to estimate the environmental used to assess the hazard and risk into force. Many drugs approved before 2006 lack with environmental protection and ensuring risks resulting from patient use in China. of pharmaceuticals. long-term environmental toxicology data and it is the environmental safety of our products, are estimated that there is a $1 billion environmental – Monitoring pharmaceutical residues in the River interconnected components of our sustainability • A database, which reflects the presence data gap. The IMI PREMIER project that will Nairobi catchment in Kenya to determine the risks strategy and they cannot be considered in isolation. of pharmacological targets of APIs across start in 2020, aims to address these challenges that patient use poses in a region with a low level environmental taxa with published genomes. by developing tools and models that could be of sewage and wastewater treatment. integrated earlier within drug development or help prioritise legacy drugs for environmental testing. Visit our website to learn more about the risks associated with PIE and what we are doing to manage them.
Multi-stakeholder meeting on PIE in Nairobi, Kenya Sustainability approach Access to healthcare Environmental protection Ethics and transparency Notices
Water stewardship AstraZeneca Sustainability Report 2019 39
Why it matters Business connection Approach Our on-site and off-site wastewater treatment methods are designed to protect the local We need water to develop and manufacture our As a company that puts health first, we strive to Water is fundamental to life. Not environment. We do this by removing most of products, so it makes business sense for us to use water efficiently and responsibly. Our approach the residual chemical oxygen demand (COD), only does water regulate our bodily manage this resource responsibly. Some of our is informed by the World Resources Institute (WRI) which is the amount of oxygen required to oxidise functions, making it essential to sites are situated in water stressed areas, making Aqueduct tool. This tool identifies and evaluates organic matter in wastewater. This is important the need for responsible management even water risks around the world. Based on this human health, it also maintains because high COD loads can reduce the oxygen more of a business imperative. The World Health information, and water use data across our the ecosystems that provide the in water bodies, which could damage aquatic life. Organization estimates that for every dollar invested facilities, we: We measure the COD of wastewater as it leaves food and other essential goods and in water and sanitation, there is a $4.3 return in the 1 1 Conduct water audits at our major sites to our sites. services from which we benefit. form of reduced healthcare costs for individuals identify water-saving opportunities. and society around the world.3 This year our COD was 405 tonnes, a decrease 2 Produce water conservation plans for all of 26% from 2018. This reduction was primarily Unfortunately, the world is facing a water crisis. Our work contributes to these Sustainable Development Goals: According to the World Health Organization, our major sites and those in water-stressed due to the divestment of one of our biological approximately 30% of people lack access to areas. These plans highlight water risks and manufacturing sites. clean, reliable drinking water.2 mitigation measures. 3 Set a target to maintain absolute water use Description at the 2015 level through 2025. We prioritise water efficiencies in water-stressed areas. Company operations can have adverse impacts Since setting the target, we’ve implemented: on water. In water-stressed regions, water quality and availability risks may be more pronounced for • Water audits at 11 sites, including Yelahanka, local stakeholders and company operations. This Bangalore; Shanghai, China; and Canóvanas, also includes responsible wastewater discharge Puerto Rico. of active pharmaceutical ingredients. We address • Rainwater harvesting at five sites: Wuxi, water impacts from the use of our products in the China; Cambridge, UK; Macclesfield, UK; Pharmaceuticals in the environment section. Canóvanas, Puerto Rico and Frederick, MD, US. Sustainability approach Access to healthcare Environmental protection Ethics and transparency Notices
Water stewardship continued AstraZeneca Sustainability Report 2019 40
Sustainability in action Targets Highlights
Employees fight droughts Science-based water targets and floods in Chennai, India In partnership with World Wide Fund for Nature (WWF) and WRI, we are developing The city of Chennai, India and our colleagues who 2025 target 2019 Update contextual-based targets for water stewardship live and work there are experiencing intensifying to ensure targets drive the intended impact. Lake in Maintain absolute Water footprint was water shortages in the dry season followed by deadly Velachery water use at 2015 3.55 million m3, CDP Water Security 'A' List flooding in the rainy season. This water crisis has This former Lake in Valachery before baseline levels an 18% reduction th dried up reservoirs and they have been converted dumping site has We earned an 'A' List rating for the 4 Lake in Valachery after from 2015 to rubbish dumps. The seasonal monsoon waters been transformed to consecutive year from CDP for water security have nowhere to go, and therefore flood the city. a full refurbished Status: On plan performance and transparency. water body Employees in Chennai felt these impacts and they enacted our value of 'doing the right thing' by reaching Smart meters Water submeters have been installed in out to the Environmentalist Foundation of India (EFI), Absolute water use (million m3) a wildlife conservation and habitat restoration group. Gaithersburg, MD, US. These will give real-time 2015: 4.32 Together, EFI and AstraZeneca Chennai are restoring water use data in the most water-intensive parts lakes in Chennai to be used as sources for clean 2016: 4.02 of the site – the pilot manufacturing plant and water. EFI engages the community that will benefit 2017 3.89 laboratories. Using this data, we expect to identity efficiency opportunities and initiate projects to from lake restoration and involves members in clean 2018: 4.01 up, planting and biodiversity restoration projects. unlock future water savings. 2019: 3.55 EFI, AstraZeneca and its community co-created the solutions, and all take ownership to ensure the A smart meter in Gaithersburg, MD, US has the potential to identify longevity of these lake restoration projects. Challenges opportunities for future water saving innovations In 2019, we restored two lakes that cover Water stress presents direct risk to our approximately 2 acres of land – in a lake in Velachery operations – our business requires continuous (shown at right) and a lake in Sholinganallur that is Water level access to reliable water sources to produce three times the size. has increased life-changing medicines. 11 of our operations 1.5 times (150%) sites are in high water stress areas (see map), Employee volunteers since the beginning helped plant protective trees of the project a situation that might escalate at some locations due to climate change and economic growth. Cleaned up more than Water scarcity has the potential to cause 40 tons of rubbish temporary site shut-downs in our site network or Removed eight tons of hyacinth, supply chain. Additionally, as a significant water an invasive species that can be harmful consumer in some catchment areas, our licence to operate could be damaged during periods of water scarcity.
Sustainability approach Access to healthcare Environmental protection Ethics and transparency Notices
AstraZeneca Sustainability Report 2019 41 Site water stress assessment Frederick, Maryland, USA Speke, UK
We have developed a standard methodology Modifications to Clean-In-Place (CIP) equipment A clean steam generator uses purified water to assess water risk at every site. Based on the and process automation. CIP is a method of to generate steam for cleaning. The project WRI Aqueduct tool, it has enabled us to broaden cleaning the inside of pipes, vessels, and filters involved installing a closed loop system to cool our understanding of our water-related risks and without having to take the equipment apart. the clean steam generator, replacing the previous identify priorities for investment. We prioritise Improvements are focused on reducing rinse once-through cooling system. It will divert 6,400m3 implementing water-efficiency projects, identified timers and recycling rinse water. As the water used of water a year from the drain and reduce the site's through audits, in water-stressed areas. in CIP is highly purified, the reduction in water water consumption by 25%. consumption will also result in significant energy Sites* savings, equivalent to 1,600MWh – enough to 1 Buenos Aires, Argentina power 130 homes in the US for a year. 2 Cambridge, United Kingdom 3 Canóvanas, Puerto Rico 4 Colorado, United States 5 Dunkirk, France 6 North Ryde, Australia 7 Luton, United Kingdom
8 23 26 Shanghai Zhangjiang, China 10 13 9 17 28 Yelahanka Bangalore, India 21 25 7 2 5 10 15 Boston, United States 29 16 24 11 11 18 Frederick, United States 12 4 12 14 Gaithersburg, United States 27 19 13 8 Macclesfield, United Kingdom 20 14 Maihara, Japan 3 15 Newark, United States 9 16 Philadelphia, United States 17 Speke, United Kingdom 18 Wilmington, United States 19 Wuxi, China 20 6th of October City, Egypt 22 21 Alderley Park, United Kingdom
22 6 Cotia-São Paulo, Brazil 1 Wuxi, China 23 Gothenburg, Sweden 24 Mount Vernon, United States Eco-efficient water taps and shower heads. This project will install more 25 Nijmegen, Netherlands AstraZeneca water stress rating efficient models for water taps and 26 Södertälje, Sweden High Medium Low shower heads. These modifications 3 27 Taizhou, China will divert 8,600m from being used 28 * Sites evaluated for water stress use each year and reduce the site's water Vorsino, Russia over 10,000m3 of water per year consumption by 6.5%. 29 West Chester, United States Sustainability approach Access to healthcare Environmental protection Ethics and transparency Notices
Waste management AstraZeneca Sustainability Report 2019 42
Sustainability in action
Creating a culture of sustainability in the labs
Business connection Approach At AstraZeneca, we want to innovate new Why it matters medicines for patients in sustainable ways, Waste is accumulating across Reduction of waste makes business sense We look at waste not only in its end state, but and how we work in the lab makes a difference. because it increases efficiency, saves us money also evaluate how it was produced. We work to the From washing glassware to disposing of gloves, the world at an increasing rate. and reduces human and environmental risks. waste hierarchy, focussing on waste prevention and everything we do in our labs contributes to our Waste is the result of a linear use We realise that if we want to be a company that is reduction, then prioritising the reuse, recycling and environmental footprint. This year, we started of resources and has the potential around in 20 years, we must embrace movements safe disposal of the waste materials we produce in a global Green Labs initiative across six of our to pollute, both of which can lead like the circular economy to balance the use of distinct ways: research sites, in partnership with the natural resources to what the Earth can sustainably not-for-profit organisation, My Green Lab. 1 Production: Product design (see PMI) to negative impacts on the planet reproduce and regenerate. Through the programme and My Green Lab and process innovations to decrease waste and people. certification process, scientists learn about by-products created during manufacturing; Our work contributes to these Sustainable Development Goals: and assess our lab practices with respect to solvent recovery systems recycle reducing waste, energy, water and chemicals, so we Improperly disposed waste can cause respiratory the need for raw materials. can continuously improve our environmental diseases and other adverse health effects, as 2 footprint. Over 900 scientists around the world contaminants are absorbed from lungs into other On-site with employees: Employees have been engaged in this certification programme parts of the body.1 Waste can also contaminate identify waste elimination projects and so far. Each of our research facilities is actively surface water and marine environments, leading implement process changes or apply pursuing ways to reduce and better manage waste. to negative impacts for humans and ecosystems. for funding from the Natural Resources At the Gaithersburg, MD, US site, 97% of biowaste Packaging plays a vital role in ensuring our products Reduction Governance Group. is recycled, resulting in more than 135,000kg of reach patients safely, and we recognise that there 3 Disposal: We work to the waste hierarchy, waste recycled. In Cambridge, various programmes is growing concern from stakeholders – including maximising opportunities to reuse and recycle have targeted recycling of specific plastics: falcon employees – to minimise plastic and packaging. where possible. tubes – potentially saving 21,000 tubes from See Product environmental stewardship for more. We are exploring circular business models to incineration per year, bulk pack stripette recycling – saving approximately 19,000 single use plastics Description maximise resource efficiency to a rate at which the Earth can regenerate. Avoiding, Reducing, Reusing per year, and Winchester lid recycling – recycling Company operations generate waste, including and Recycling are our strategies to increase over 10,000 per year. We have seen how this biological waste and hazardous waste, and we material efficiency and reduce waste. programme allows us to share best practices and work with specialist third parties to manage its helps scientists see environmental impacts that disposal. Waste can have adverse impacts on the were perhaps invisible before, as well as make their environment and human health through pollution. own sustainability ideas reality. And in turn, this will lead to behavioural changes in and around the lab Waste (tonnes) Total waste with measurable results. 2019 11,478 22,715 34,193
2018 10,156 20,925 31,080
2017 10,592 20,607 31,199
Hazardous waste Recycle the value: An example of waste segregation in our campuses Non-hazardous waste Sustainability approach Access to healthcare Environmental protection Ethics and transparency Notices
Waste management continued AstraZeneca Sustainability Report 2019 43
Challenges Sustainability in action Targets
From single-use to reusable Transition away from Growing production levels have generated thermal packaging single-use plastics increased waste volumes of both hazardous and non-hazardous waste. As production levels Each year, we send 60,000 products to hospitals We tackle waste generation by collaborating inside are projected to continue to grow, achieving our 2025 target 2019 update and clinics for clinical trial distribution. It involves and outside our organisation. At our sites, we are total 10% reduction target will be a challenge. Reduce waste by 10% Total waste was a huge amount of packaging. The original process coordinating to quantify and remove avoidable We continue to seek ways to decouple business below the 2015 baseline 34,193 tonnes, used a box the size of a small table, each containing single-use plastics (SUPs) in food service, cleaning growth from waste generation through less an 11% increase 15kg of packaging that had to be thrown away and office areas. In 2019, initiatives across our sites material-intensive APIs, and device and process from 2015 after delivery and recipients were responsible for removed over two million pieces of plastic cutlery design, as well as building material loops by Status: Lagging its disposal. Our distribution partner told us that with compostable or reusable alternatives, and an recycling for future sustainable sourcing. reusable thermal packaging was available, but other initiative at Macclesfield reduced over one million companies had tried it unsuccessfully – only 50% small milk containers by moving to larger bottles Highlights of sites sent the box back, and the remaining were and integrating milk into drinks machines. charged to the sponsor as lost boxes. We decided Circularity collaboration Our Gaithersburg site, MD, US has removed to work with our distribution partner to develop In Gothenburg, Sweden, we are part of a circular virtually all SUPs from food service areas. For a new approach involving a returns process. We solution for paper hand towels in washrooms. 2020, we have signed on to the UK National Health collaborated with sites and shipping companies Previously, towel bins were mixed with other waste Service (NHS) Plastics Pledge across all our R&D to ensure the returns process would work. Some materials and the contents inside the plastic bin and operations sites. simple ideas included asking our distribution contact bag were incinerated. Partnering with our towel to use the brightest coloured paper for returns supplier and the local municipality, we now send instructions – a pink envelope would get more We pledge to end purchase of SUP stirrers our towels back to the manufacturer where they Red2Green recycling bin in our lab attention than just a white sheet of paper. We started and straws by April 2020; end purchase are pulped and recycled into new paper products. with a pilot, followed by roll-out across 35 countries. of SUP cutlery and plates, and certain Our colleagues changed behaviours to eliminate Example of bench and plastic brick made from waste in our labs cups by April 2021; and reduce SUP food contamination from towel bins. As the bins now The results: contain exclusively paper towels, we can eliminate containers and other plastic cups and approximately 130,000 plastic bags from the site 98% returns rate (target of 80%) lids by April 2021. each year. This circular model has also reduced $3.9 million cost savings the carbon footprint of hand towels by more
Saved packaging waste equivalent to than 40%. the weight of 747-jumbo jet We participate in external partnerships to gain insights and share our learnings: Turning medical waste into products • We are part of the UK Research and Innovation We produce waste in our labs and its disposal “We’ve now done about 40,000 shipments Circular Economy Approaches to Eliminate Plastic can have huge environmental impacts.To turn (two jumbo jets worth), and it’s proved Waste team, awarded $1.25 million from the waste from a problem to a resource, we joined the Red2Green recycling program in Gaithersburg. that the process is scalable without Plastics Research Innovation Fund. This takes our regulated medical waste and • anyone having to hold its hand. That, to We are a key collaborator in the RE3 Rethinking turns it into plastic lumber material which is me, is what makes it truly sustainable.” Resources and Recycling project led by manufactured into speed bumps, farm tools, Chris Jones, Clinical Distribution Lead Manchester University to innovate new ways park benches, and more. of making, using and recycling plastics. Sustainability approach Access to healthcare Environmental protection Ethics and transparency Notices
AstraZeneca Sustainability Report 2019 44 Ethics and Connection to health:
Fostering a culture of Impact doing the right thing across transparency our worldwide operations, including our supply chain, promotes health and Why: wellbeing Equality and prosperity for all 89% fosters healthy societies of supplier spend was assessed through our third-party risk management process
We have 45.4% a bold ambition: of senior middle management roles and Create positive societal above are held by women impact and promote 80% ethical behaviour in all of employee survey respondents feel that markets across our AstraZeneca has a value chain ‘Speak Up’ culture Ethical business culture
Inclusion and diversity Our material focus areas Supporting the Talent and UN Sustainable workforce evolution Development Goals universal action plan Workforce for a fairer, safer and wellbeing and healthier world safety Human Responsible rights supply chain Sustainability approach Access to healthcare Environmental protection Ethics and transparency Notices
Ethics and transparency overview AstraZeneca Sustainability Report 2019 45
The big picture Material focus areas We want to be valued for not only We put our medicines, but also for the Our core company Values, including putting patients first Our approach prioritises six ethics areas identified way we work. We believe integrity, patients first and doing the right thing, guide our by our materiality assessment: decision-making and foster a unified AstraZeneca • respect and transparency comprise culture. These Values underpin all our activities and Ethical business culture the foundation of a healthy serve as a compass for our interactions. • Inclusion and diversity business culture. We build trust Our Values Our approach goes beyond rules and policies: underpin all our • Talent and workforce evolution by demonstrating ethical business we want to empower our workforce to use their activities and serve • Workforce wellbeing and safety practices and fair treatment in judgement to do the right thing. We embrace as a compass for our everything we do within our ethics and transparency, from the way we treat interactions • Responsible supply chain our employees and patients, to our emphasis on company, across our value human rights and equity, to our partnerships with • Human rights chain and in society. our suppliers.
In addition to our core company Values, we have Key accomplishments established policies that guide employees on how We do the • Launched an online interactive map showing to apply ethics in their day-to-day work – from right thing information on site operations, suppliers, Access scientific research in the laboratory to interactions to healthcare programmes, and demographics— with colleagues, healthcare professionals, patients a first for the pharmaceutical industry. and supply chain partners. See Ethical business culture for more. • Recognised as a Top Science Employer (#15 globally) for our strengths in employee treatment, work culture, values and social responsibility.
• Launched our first Global Inclusion and Diversity Council, led by CEO Pascal Soriot.
• Hosted a virtual and on-site Speak Up campaign to encourage employee dialogue and advocacy.
• Hosted mental wellbeing events to reduce stigma and raise awareness.
Compliance colleagues discuss our Ethics strategy Sustainability approach Access to healthcare Environmental protection Ethics and transparency Notices
Ethical business culture AstraZeneca Sustainability Report 2019 46
Why it matters Description Approach Governance There is a lack of public trust in Company Values and norms, practices, standards We strive to model an ethical business culture We integrate ethics into the Compliance arm and principles that guide the actions and behaviour by going above and beyond legal and regulatory of our Global Sustainability function. Our Chief big corporations. Scepticism is of employees, including the Code of Ethics, and requirements. This means fostering an environment Compliance and Sustainability Officer, who reports even greater towards companies acting in an ethical manner that goes beyond where our employees can speak up if they see directly to the CEO, is accountable for compliance, in the pharmaceutical industry. compliance with policies and regulation. This behaviour that is not aligned with our Values or sustainability strategy, and safety, health and This trust deficit impacts the ability applies across our company’s operations and our encounter wrongdoing. We ask our leaders to environment matters. entire value chain. This issue includes bioethics demonstrate desired behaviours, and we provide In 2017, we relaunched our Code of Ethics to to build a healthy, productive (including animal welfare), anti-bribery and anti- employees with tools to act ethically. strengthen employee understanding and adherence workforce and the partnerships corruption, data transparency, ethical investing, Recognising that our workforce is composed by outlining our commitments in simple terms intellectual property, responsible lobbying, necessary for innovation and of individuals empowered to make their own and focusing on why these commitments matter. responsible sales and marketing and responsible bringing healthcare solutions to decisions, we know that setting rules is not enough It comprises our company Values, expected use of technology. more people. Stakeholders deserve – which is why we emphasise a culture based on behaviours and Global Policies. Additional requirements at the global, local and business-unit ethical business practices from Business connection our Values, key commitments and principles. We level complement our Code, providing guidance companies that are embedded in foster this culture by encouraging all employees Our ability to attract talent and have access to adopt a sustainability mindset that embraces for employees. their countries and responsible our core values including: ‘doing the right thing’ to markets is dependent upon upholding ethical Bribery and corruption is a concern for our for all our partners and 'putting patients first.' for life-changing medicines. business practices and being increasingly industry and society more broadly. Our Audit transparent about how we operate. The In today's increasingly information-seeking society, Committee annually reviews our systems and reputational, legal and long-term sustainability our actions add more value by being visible. controls to prevent bribery and corruption. risks make an ethical business culture imperative. Transparency supports the learning process Our Chief Compliance Officer is accountable
for our employees, suppliers, and anyone on a for the Compliance function’s reporting to the Our work contributes to these Sustainable Development Goals: sustainability journey. We look to balance what we Audit Committee on bribery and corruption risk, share about how we work and our results with the safeguards and breaches. Where a breach has need for data privacy and competitive innovation. been substantiated, we take corrective action, including termination of employment or third- party engagement. We also take steps to prevent recurrence, including enhancements to our controls. In 2019, we launched a new anti-bribery course, tailored to our Commercial colleagues, with scenarios relevant to their daily work.
See our Global Standard on Anti-Bribery and Anti-Corruption.
Our employees uphold our Values in meetings in-person and virtually Sustainability approach Access to healthcare Environmental protection Ethics and transparency Notices
Ethical business culture continued AstraZeneca Sustainability Report 2019 47
Sustainability in action Targets Challenges When it comes to preventing bribery, we are not Speak Up campaign Share & Care Europe just concerned about our employees' behaviours; volunteering programme Speak Up is about fostering a culture where all we are accountable for the actions of third parties employees feel empowered to raise ideas and As AstraZeneca employees, we are committed 2020 target 2019 update working on our behalf. We rely on the expertise respectfully challenge behaviours not aligned with to sharing our time to have a positive impact on and services of third parties in all aspects of our Ensure AstraZeneca • 80% of our Values. It means employees must feel safe the environment, patients and community. In our business, which exposes us to risk as we have has a ‘Speak Up’ employee survey and feel that their voices are heard. It requires Europe and Canadian locations, this year we less visibility of day-to-day conduct. All patients culture respondents managers to promote diversity of thought and established a combined volunteering programme deserve access to our medicines, so we operate feel we have a to handle challenges with respect. In 2019, we to make our positive mark on the planet and in many markets, even where the risk of bribery 'Speak Up' culture emphasised the value of speaking up through a society. This common framework we use is called Status: On plan and corruption is present. While the prevalence of week-long Speak Up campaign. It gave employees Share & Care. Employees have supported causes • 63.3 instances of bribery may be higher in some markets, we have a platform to share their thoughts and stories such as planting trees, facility improvement for non-compliance a robust compliance programme with controls around Speak Up. It also featured a series of visually impaired children, care item collection for with the Code in place, designed to prevent such misconduct. demonstration scenarios tackling situations from hospice patients, building homes for bees, and a of Ethics per Our training and policies also emphasise that everyday to complex. See an example of how we charity run for cancer patients. thousand bribery could happen anywhere, and we must engaged here. The campaign brought attention to employees in all be vigilant. refreshed guidance resources including materials Living out our Value of commercial Highlights for managers to use with their teams and our putting patients first business units channels to raise concerns. • We held our first Patient Week this year. Through 434 reports were Leveraging technology for ethics this global enterprise-wide approach, we engaged received through An automated FAQ chatbot helps answer and reflected on how we can achieve our vision AstraZeneca employees' compliance questions. In AstraZeneca of delivering the healthcare experiences and helpline (in China 94% of users said they would use the outcomes that people care about most so they commercial chatbot again. can enjoy fulfilling lives. Patient Week provided business units) Ethics compliance ambassadors employees and teams across the company with The successful ethical compliance ambassador the experience to walk in patients’ and caregivers’ 2025 target 2019 update programme in AstraZeneca Egypt was shared shoes, listen to their experiences and act on their Maintain 100% of 100% of active across the Middle East and Africa region to help insights to activate patient-centric solutions and active employees employees trained spread best practices. deliver meaningful advances along the entire trained on the Code in 2019 patient experience. In support of our patient-centric of Ethics Board reviews ethics metrics business models, we launched a new Global The Board of Directors began reviewing a new Standard on Patient Interactions. Training on this company culture dashboard that measures integrity, new Standard has been assigned to all employees. Status: On plan engagement, performance and development. We also deployed materials through a new online resource hub, including a toolkit guide. Employees trained on anti-bullying and anti-sexual harassment
Colleagues brainstorming on Speak Up Learn about the training in the Human Rights section. Sustainability approach Access to healthcare Environmental protection Ethics and transparency Notices
Ethical business culture – bioethics AstraZeneca Sustainability Report 2019 48
84% mice
Why it matters Governance Animals in research We embrace a Culture of Care, in which we work Our Bioethics Advisory Group (BAG) brings to high standards of animal welfare and constantly Bioethics is a rapidly evolving together subject matter experts to oversee look for ways to improve how we use animals in field and so too are stakeholder bioethical issues. The BAG carries out research. Our Chief Veterinary Officer leads the expectations. There are a range horizon-scanning to anticipate bioethical trends Council for Science and Animal Welfare (C-SAW), ~144,000 and issues, provides subject-matter expert advice of ethical issues that stem from which is the expert decision-making group for in response to stakeholder enquiries, and oversees biological and medical science, animal welfare and compliance. C-SAW focuses animals the Global Bioethics Standard and its supporting (109,000 in our own facilities, and a on promoting the 3Rs (replacement, reduction and including the use of human global standards. This Standard was updated by further 35,000 at third parties refinement of animals in research), encouraging acting on our behalf) biological samples (HBS), the the BAG in 2019, which demonstrates transparency openness about our use of animals and fostering in topics such as animals in science, HBS, use of animals in research, and initiatives to promote a Culture of Care. C-SAW and clinical trials. These governance activities the conduct and transparency ensures that our governance and oversight communicate the importance of human and animal mechanisms are robust, and that we are continually of clinical trials. concerns across the business. Our Chief Medical working to improve laboratory animal science Officer serves as the owner of the Global Standard: 2.2% and welfare. We share lessons and innovations others* 3.6% Business connection Bioethics and sponsor of the BAG. within the company and with our external partners, (*Guinea pigs, dogs, fish 8.8% Human biological samples working in a spirit of openness and transparency ferrets, primates, rabbits, As a science led company, we are dependent cotton rats pigs, sheep) rats Our HBS Governance Team oversees our collection, around responsible animal use. upon biological and medical science. We must storage, use and disposal of HBS in R&D, including 1.4% consider the ethical issues that arise in the short human foetal tissue (hFT) and human embryonic For more on our approach and governance, see the chickens and long term. This careful assessment of our stem cells (hESC). This team also approves or Ethical business culture section. science and the impact on our stakeholders and the rejects proposals for experiments using hFT and environment is essential to be able to deliver our Learn more about how our work with animals aligns hESC. Additionally, the HBS Governance Team is with the 3Rs framework. life-changing medicines now and in the future. accountable for oversight of risk management for major incidents involving the use of HBS in R&D.
Rats are the second most commonly used species in research, after mice
Working together to build a Culture of Care Sustainability approach Access to healthcare Environmental protection Ethics and transparency Notices
Ethical business culture – bioethics continued AstraZeneca Sustainability Report 2019 49
Sustainability in action Challenges Scientific and technological developments Biodiversity management C-SAW Award winners summary Exploring technological alternatives continue to gather pace, meaning that to human biological samples AstraZeneca supports the principles of the Nagoya We recognise and celebrate our scientists and regulations and governance need constant Protocol to protect and value biodiversity. Some animal care staff for exceptional commitment to The use of human biological samples, such as solid focus in order to ensure they remain relevant of our medicines impact biodiversity on our planet the 3Rs – replacement, reduction and refinement tissue, biofluids and their derivatives, plays a vital and effective. Our company Values guide us that because they are sourced from biological materials. of animals in research. Our C-SAW Global 3Rs role in developing a deeper understanding of human anticipating and preparing for these advances In 2019, for example, our medicine that has the Awards is a competitive and highly visible awards diseases and their underlying mechanisms, which while following the science, is key to doing the most impact on genetic resources was assessed programme that recognises excellence in 3Rs helps us create effective, new and personalised right thing. against the EU Nagoya Protocol regulations. The science and encourages continuing improvements medicines. In rare circumstances, we may use assessment was conducted using a due diligence in animal welfare across our company and with our human fetal tissue (hFT) or human embryonic stem Highlights tool developed specifically for governing and external partners. Alongside the 3Rs Awards, we cells (hESC). In these cases, an internal review of Employee bioethics awards successful recording our utilisation of genetic resources in also call for nominations for exceptional individuals the scientific validity of the research proposal will be 40+ entries received from employees for our accordance with regional and national access and teams in the categories of Culture of Care and conducted and permission to use the tissue will be most successful ever Global C-SAW Awards. and benefit sharing legislation. The assessment Openness about animal research. Highlights from granted only when no other scientifically reasonable identified an in-scope material and we formally 2019 include: alternative is available. Increasing transparency on bioethics notified the Swiss Government of our use of the • A novel molecular biology approach that We are committed to minimising the use of fetal New and expanded content about our bioethics material prior to product launch. This is the first time would reduce the numbers of animals needed tissue by exploring technological alternatives. was added in 2019 to the AstraZeneca website. we have had a genetic resource in scope of Nagoya to screen lipid nano-particles by tagging the In 2019, no additional new research proposals legislation. Our bioethics governance ensured no molecules of interest. that include use of cells derived from hFT have delay to our medicine manufacture and supply. been approved; three projects using hFT have • A refinement to anaesthetic methods in rats, progressed as at 31 December. An additional allowing the use of less invasive nose cones project using hESC has been approved in 2019, instead of intubation during procedures. resulting in 10 projects using 21 different hESC • A comprehensive programme of work and lines or derived cells having been approved as at publications that ultimately provided the 31 December; and four projects are ongoing. science for regulators in Europe to replace some animal studies previously using fish with non-animal alternatives.
• A cross-site collaborative project to encourage the uptake of refined methods of handling laboratory rodents.
• An innovative approach to giving our employees an insight into the world of animal research, by developing a 360 virtual tour of one of our facilities.
Colleague in an animals in research lab Sustainability approach Access to healthcare Environmental protection Ethics and transparency Notices
Inclusion and diversity AstraZeneca Sustainability Report 2019 50
Why it matters Business connection Governance Sustainability in action By fostering an inclusive Inclusion and diversity is good for our people Our Board of Directors and SET conduct biannual Design for inclusive leadership: and our business. Studies show that diverse reviews of the AstraZeneca workforce composition, Global Inclusion & Diversity Council and diverse workforce and management teams drive a 19% increase in covering a range of metrics, including diversity workplace, we are doing the right revenue.1 Inclusive companies are 120% more trends in terms of gender, leadership, ethnicity We know that inclusion is a behaviour that should thing, driving innovation and likely to hit financial goals2, and ethnically diverse and age. A new dashboard for 2020 on company be demonstrated by all our employees, and that is 3 why our concept of inclusive leadership applies to contributing to our values-based companies are 35% more likely to perform better. culture includes inclusion and diversity measures. Accountability is held by Executive Vice President all. We define it as: culture within our business. Our work contributes to these Sustainable Development Goals: of Human Resources, a SET member who reports to the CEO. The SET has quarterly reviews of At AstraZeneca, we know employees are able to diversity trend metrics, including gender diversity • Appreciating individuals for who they are, be at their best in environments where they feel and leadership ethnic diversity. We also set internal valuing and leveraging their differences, safe and empowered. We also know that bringing targets and KPIs enterprise-wide and for each SET contributing to a psychologically safe together different ways of thinking is the foundation area. External targets and KPIs are available in the environment. Approach Sustainability Data Summary. Our Global Inclusion of our ability to innovate. By supporting equality, we • Supporting lifelong learning through coaching and Diversity Council comprises senior and rising are also addressing a barrier in healthcare, where We see inclusive behaviour and a diverse workforce and honest performance-related feedback. economic disparities contribute to challenges of as a business imperative. Inclusion and Diversity leaders from across our Company. The Council affordability of medicines, proximity to healthcare is one of the three pillars of our People strategy oversees the implementation of our inclusion and • Ensuring the right people are assigned to do providers and the privilege to take time off work driving innovation, engagement and a sense of diversity strategy through our worldwide plans and the right work at the right time. for treatment. connection and belonging. Through programmes global policies. and governance that improve understanding, Description leadership and performance – we empower every By launching our first Global Inclusion and Diversity employee to become a champion of inclusion and Council, which is chaired by our CEO, we are Company efforts to ensure that the workforce, diversity. Our strategy asks us all to demonstrate setting the tone from the top. The Council includes at all levels, reflects and embraces the diversity inclusive leadership, to speak up, listen up and representatives from each of the SET areas and of the populations in which we operate, as well as follow up with great ideas and fresh perspectives. key geographies. This diverse strategic body is different backgrounds, cultures and experiences. Through our emphasis on structural inclusion to accountable for developing and implementing This involves going beyond non-discrimination promote equality and eliminate unconscious bias, an inclusion and diversity strategy for each SET to promoting equality and inclusive behaviour we also focus on building and sustaining a diverse area and key geography, so the global approach in the workplace and communities where the talent pipeline. is tailored for our business model. The Council company operates. See the Human Rights section for related is reviewing both quantitative and qualitative information. measures such as gender demographics by career level and inclusion stories shared in our This is Me campaign (see more in the Highlights). Sustainability approach Access to healthcare Environmental protection Ethics and transparency Notices
Inclusion and diversity continued AstraZeneca Sustainability Report 2019 51
Sustainability in action Targets Highlights
Building a Speak Up culture: Building and sustaining a diverse Bloomberg Gender Equality Index inclusion and diversity events talent pipeline AstraZeneca was one of 230 companies selected for this Index that distinguishes companies committed Our success depends on fostering an In France, a student’s educational path and access to 2025 Target 2019 Update to transparency in gender reporting and advancing entrepreneurial mindset that drives disruption employment can depend on social, territorial, ethnic women’s equality. Reach gender equality 45.4% of women and innovation, and this can only be done if we and cultural background. It takes six generations in in management in senior middle encourage great ideas to be considered, debated France to get out of poverty compared to four on Corporate Equality Index positions management and pursued. To foster opportunities to Speak Up, average in OECD countries. Equality of opportunity Earned a 100 on the Human Rights Campaign's index roles or higher we host employee inclusion and diversity events. remains to be achieved. to designate AstraZeneca one of the 2020 Best Places For the first time, this year we a took a global Status: On plan to Work for LGBTQ Equality. In 2019, AstraZeneca took action on social inclusion approach to 'Empowerment Summits'. These are as a founding partner of L'Ascenseur [The Elevator]. employee conferences on inclusion and diversity This is Me engagement campaign L’Ascenseur brings together 20 associations to that are conducted with locally relevant content We encourage employees to share their personal implement solutions that contribute to placing the Challenges curated by local teams. Summits were held stories and inclusion and diversity through video social elevator back into service. campaigns, using the tagline "This is me, This is us, across the US, AsiaPac, Brazil, Sweden, Poland On a global basis, cultural starting points This is AZ". Originating from AZPride, employees and the UK, with plans for expansion to other and understanding around inclusion and “On issues such as inclusion and shared their stories of coming out and their experiences countries in the future. Our employee resource diversity differ. Our aim is to stimulate dialogue, diversity, theory and goodwill no as a member or ally of the LGBT+ community. Stories groups (ERGs), led by volunteers at various sites, understanding and leadership in this space in all longer are sufficient; companies should spread internally and externally through our social continue the dialogue throughout the year. These of the countries where we operate, so we tailor media platforms throughout Pride month and provided groups emphasise alignment with our business concretely commit and act to make our approach to be locally meaningful. Whilst education and an opportunity to connect across strategy and capability to support inclusive change happen.” we promote equality within the company on a the organisation. leadership, Speak Up culture and a diverse pipeline. Olivier Nataf, Country President – global basis, rights affecting minority groups and For example, the AZPride ERG for our LGBT+ AstraZeneca France women vary greatly by country due to different Furthering our inclusion and diversity commitments community and allies now has a global approach legal frameworks. We advocate for equality Joined United Nations Free and Equal Standards with chapters in five countries. The global focus By the end of 2022, AstraZeneca France aims through consortiums such as United Nations for Business aimed at tackling discrimination shares ideas and materials to drive efficient growth to support more than 1,000 young people, from Women's Empowerment Principles and United against lesbian, gay, bi, trans and intersex people. and best practices to its chapters. age 12 to 25, all along the professional value Nations Free and Equal Standards for Business. Committed to the United Nations Women's chain: information, orientation, education and Empowerment Principles dedicated to corporate employment. AstraZeneca and L’Ascenseur are actions to endorse equality. developing the first collaborative cross-association programme. Our employees will commit alongside the company through mentorship, workshops, tutoring, coaching, etc. to take up this challenge. This will help AstraZeneca France enrich its pipeline of young talented people from various origins and backgrounds.
AZPride ERG colleagues meet and greet Sustainability approach Access to healthcare Environmental protection Ethics and transparency Notices
Talent and workforce evolution AstraZeneca Sustainability Report 2019 52
Why it matters Description Approach To foster innovation, we seek to harness different perspectives, talents and ideas, as well as ensure Company efforts to foster a lifelong learning We want to ensure our 70,600 employees are Employment and workplaces that our employees reflect the diversity of the organisation, form the best teams, facilitate prepared and empowered to face changes in countries in which we operate. See the are changing in light of agile ways of working, upskill and reskill current technology, and we strive to provide the work Inclusion and diversity chapter for more. shifting worker expectations employees, and engage and prepare all employees environment and opportunities they need to thrive. and technological advances for digitalisation and automation. Our People strategy supports our strategic priority – Ethical recruitment – We are committed to in automation. These trends of being a Great Place to Work, and is built on hiring and promoting talent ethically and Business connection three pillars: in compliance with applicable laws. Our are evolving the nature of jobs, mandatory hiring training for managers • Performing as an enterprise team – roles and business operations. As an innovation-based company, the continual includes a module on diversity in hiring and Our approach to attract the critical capabilities development of our workforce is imperative for the importance of a diverse workforce. We Employees are increasingly required to deliver our strategic priorities is attraction and retention. We strive to prepare for protect against discrimination on any grounds, attracted to companies with a underpinned by predictive analytics, meaning and adapt to disruptive workplace and workforce including disability. Our Code of Ethics covers strong social purpose, which workforce decisions are data-driven. We also changes by leading the way in responsible recruitment and selection, performance use workforce analytics to optimise our global provide opportunities for employment practices that enable people to reach management, career development and workforce and automation initiatives to support lifelong learning. their full potential. This makes business sense, promotion, transfer, training, retraining our workforce to spend a larger proportion of as the future of our company depends on our (including retraining, if needed, for people their time on higher-value activity. people. We believe our investments support our who have become disabled) and reward. business and society more broadly, as we develop – Talent scout model – We have implemented the workforce of tomorrow to deliver medicines this model to enhance our capacity to attract Governance for patients. key talent into senior roles. This has been successful, demonstrating our ability to hire Our approach is governed by the Executive Our work contributes to these Sustainable Development Goals: best-in-class talent at a reduced cost. This has Vice President of Human Resources, who reports been supported by an enhanced employee to the CEO. On a biannual basis the Senior referral scheme, which has become an Executive Team (SET) and Board are provided increasingly important source of hire. with a comprehensive overview of the AstraZeneca workforce, covering a wide range of metrics and • Developing a culture of lifelong learning – measures. The SET is also provided with a quarterly We encourage employees to take ownership summary of key workforce metrics. of their own development and expect leaders to spend time supporting their employees’ development.
– Learning and development initiatives – We have ongoing investment in our workforce through professional and technical training, and we enhance this through leadership, mentorship and job-rotation programmes Colleagues test out virtual reality at the Scifest across the organisation. in Gaithersburg, MD, US • Champions of inclusion and diversity – Sustainability approach Access to healthcare Environmental protection Ethics and transparency Notices
Talent and workforce evolution continued AstraZeneca Sustainability Report 2019 53
Sustainability in action Targets Challenges We seek to reduce regretted turnover through more Tapping into our internal gig economy Learning transformation – effective hiring and induction, exit interviews, risk building a culture of lifelong learning In 2017 we launched plan100, an innovative assessments and retention plans. programme that embraces the future of work Constant breakthroughs not only change patients’ 2025 target 2019 update by tapping into our own internal gig economy lives, but our employees’ lives too – providing Highlights Build a strong learning 83% of employee to match high potential talent to projects across diversity, flexibility and choice in our careers. We and development survey respondents Ranked among top science employers the globe. Through plan100, our people take believe in building a culture where lifelong learning culture by 2025 feel there is In top 20 for third consecutive year by Top on global development opportunities whilst is ingrained in the way we live and work, share promoting growth opportunity Employers Survey from Science Careers. optimising best practice sharing across countries, knowledge, and deliver life-changing medicines opportunities at for growth and building core capabilities and our succession for our patients. all levels of our development pipeline. People are nominated to the projects Attrition rates (Voluntary employee turnover %) We have already made progress in building a strong organisation and where their skills are needed most, thus providing 2017 7.1 9.7 12.2 learning foundation. Through 2019, we continued ensuring a strong managers with the advanced capabilities they to provide learning opportunities for our employees, leadership pipeline need. With a goal to support 100 appointments 2018 6.0 10.1 14.4 from those joining at the start of their career to our across the region in three years, plan100 has most senior and experienced leaders. We have 2019 7.0 10.5 14.4 now doubled this figure in less than three years, Status: On plan also built a number of tools and resources to set with 211 people matched. the standard for upskilling our managers across Voluntary employee turnover – high performers In 2019, plan100 expanded to include several more AstraZeneca, for example, our Manager Essentials 2025 target 2019 update Voluntary employee turnover – total business units enabling cross-functional expertise course is now available in 10 languages. Ensure AstraZeneca 86% of employee Voluntary employee turnover – recent hires sharing. The global sharing of talent continues to In 2020, we will focus on transformational has a highly-engaged survey respondents promote diversity in our organisation, enriching learning tools and content to reinvent our learning workforce and is feel that AstraZeneca our working environments with the new ideas and ecosystem. Our employees will have access to viewed as a leader in is a great place to fresh perspectives that evolve through a more a more personalised, mobile learning experience attracting top talent work, up from open and inclusive workplace. With plan100, we’re across more devices. We will continue to develop 83% in 2018 meeting new minds and motivating future leaders our leaders of today and tomorrow including to succeed. Status: On plan through new global programmes such as Leading Enterprise and updated programmes such as 211 people matched Leading Business. We will also be building our capabilities across learning agility, digital literacy and coaching, to provide opportunities for our 51% grew into a bigger role employees to reach their full potential through a new global online Digital Hub.
49% improved their succession readiness
We aim to provide opportunities our workforce needs to thrive Sustainability approach Access to healthcare Environmental protection Ethics and transparency Notices
Workforce wellbeing and safety AstraZeneca Sustainability Report 2019 54
Why it matters Business connection Approach Governance People have the right to a safe Avoiding safety incidents and poor wellbeing is We take a holistic approach to workforce wellbeing Workforce wellbeing and safety is governed through not only the right thing to do, they can lead to and safety, considering both physical and mental our Global Sustainability function, with oversight and healthy work environment. productivity declines which can be costly to our health dimensions at work, in transit and at home. by the Executive Vice President of Sustainability, Physical safety at work and company. The WHO estimates that for every We strive to ensure that our employees have the who reports to our CEO. We use comprehensive in transit is a long-standing $1 put into scaled up treatment for common resources not only to deal with, but to thrive in assurance programmes, including performance expectation for companies to mental disorders, there is a return of $4 in improved challenging situations. reporting, internal auditing and periodic health and productivity.2 By investing in these management review to constantly monitor and Our strategy is to create a culture of safety, provide. Mental wellbeing at initiatives, we are investing not only in the health manage performance. Some sites seek external health and wellbeing to protect life. Through our work is an emerging societal of our people and our company, but in the health review and we achieved ISO45001 certification management system, we manage risks to maintain of economies – depression and anxiety have a at our Macclesfield, UK; Istanbul, Turkey; and need and expectation. a workplace that is safe and healthy for our entire significant economic impact, with the estimated Gothenburg and Södertälje, Sweden sites workforce and visitors. We have created a culture cost to the global economy being $1 trillion per accounting for more than 10,000 of our employees. Wellbeing integrates mental health (mind) and of continuous improvement so that we learn from year in lost productivity.2 physical health (body) resulting in more holistic any incidents. We seek to ensure that our suppliers We monitor performance centrally to assess approaches to disease prevention and health Our work contributes to these Sustainable Development Goals: embrace these same principles. progress and identify areas for improvement. promotion.1 It is associated with numerous health, We use a dedicated website to communicate Our global SHE standards and procedures job, family, and economically related benefits.2 information on how incidents can be prevented establish mandatory requirements in key risk areas. in the future. Our Code of Ethics includes elements relating to Description workforce wellbeing and safety:
Company efforts to create a healthy and safe • We promote and maintain a safe, healthy, secure working environment are conducive to a workforce work environment. thriving and maintaining good work–life integration. • We use effective SHE management systems to This includes efforts to limit safety hazards for identify and manage risk and maintain strong employees through proper design, engineering SHE performance. and preventative maintenance, and embedding a safety, health and environment (SHE) culture • We only work with others who embrace SHE across the organisation. standards consistent with ours.
In 2019, we launched our first global Workforce Wellbeing strategy. Designed to integrate mental and physical health, we want to empower and provide the necessary resources for our workforce to judge life positively and feel good.
A wellness event hosted by an on-site campus dietitian to raise awareness on foods that are beneficial for pre and post workouts
Employees take time to exercise at one of our on-site fitness centres in Gaithersburg, Maryland Sustainability approach Access to healthcare Environmental protection Ethics and transparency Notices
Workforce wellbeing and safety continued AstraZeneca Sustainability Report 2019 55
Sustainability in action Recognising wellbeing Workforce and safety excellence Wellbeing Model Employees drive action Annually we recognise excellence at our sites, o on mental health r Trained aids including for wellbeing and safety initiatives. Our Local mental health initiatives implemented at Our Mental Health First Aiders have had training in Puerto Rico site won the Stay Well category with various sites have inspired our global workforce recognising mental health issues and have support a multi-faced approach. It opened a wellness wellbeing strategy (see graphic at right). Employees and resources at their fingertips to direct people club with fitness classes, held a health fair, and have felt empowered to create their own initiatives towards what will be most helpful. offered blood pressure and glucose testing such as an internal social media stream dedicated clinics. It was the first site to implement our new as a safe space to share mental health awareness ear fitting technology and every employee in stories. Here a few examples of mental wellbeing the hearing protection programme was tested ou actions across the globe: to ensure proper fit. The Global Environmental Remediation Group io Conversations on mental health won the Leading in SHE category for its safe Or is Colleagues across the UK came together in process to remove decommissioned structures February to mark Time to Talk Day 2019. It is a once used by a legacy company to help boats Healthy Workplace UK-wide charity event that aims to get people transport chemicals on the Ohio River in the Ensure safe and healthy workplaces where Employee assistance programmes together to discuss mental health. This supports US. The project posed challenges such as workers can speak up and feel good. Sponsored by some of our health care and benefits breaking down stereotypes, removing stigmas working at heights and over water, performing Healthy You schemes, these programmes offer support such and aiding recovery. diving operations, and managing hazardous Provide resources that impact your mind, body as online or over the phone guidance or access to World Mental Health Day in October - Employees waste. The team successfully completed the and environment to help you feel good. therapists for employees and family members. have felt empowered to speak up and share mental project with zero recordable incidences for health awareness stories on an internal social media over 13,000 working field hours. It emphasised Healthy Organisation stream dedicated as a safe space with the purpose the right culture with safety kick-off meetings, Foster a performance culture that encourages of sharing vulnerabilities and strengths. Followers twice daily briefings, mock emergency drills, workers to be themselves and feel good. have grown five-fold to more than 1,000 in 2019. and promotion of a stop work culture for all employees and sub-contractors.
The team successfully completed the project with zero recordable incidences for over 13,000 working field hours Colleagues discuss safety measures on site Sustainability approach Access to healthcare Environmental protection Ethics and transparency Notices
Workforce wellbeing AstraZeneca Sustainability Report 2019 56 and safety continued
Sustainability in action Challenges
Creating a culture of safety Approximately 34,000 colleagues in our workforce Targets are based in the field, where the highest risk for To deliver a culture of safety and a safety mindset, a significant injury or fatality is driving. We have we host workshops throughout the year. The a 2025 target to reduce the vehicle collision rate Serious incident and fatality (SIF) prevention summit by 55% from our 2015 baseline. The collision rate explained the importance of focusing on serious has decreased 23% in 2019. Continued work with incidents, and the types of tasks and scenarios 2025 target 2019 update markets with higher collision rates and markets that could lead to a SIF event. Attendees learned Workforce safety: 75% The injury rate has with lower DriveSuccessTracker scores has led the importance of fully investigating these events reduction in total injury decreased in to an improvement. Several global campaigns without blame and sharing the learning so they rate from 2015 baseline 2019, bringing our were rolled out in 2019 to the field force, focusing can be prevented. total decrease since on Ergonomics and the Road Safety top 10. We We have a 2025 2015 to 41% continue to strive to improve reporting including target to reduce After our SIF Prevention programme was in place Status: On plan potential serious incidents and fatality reporting the vehicle collision a trend of serious near misses was identified during so that we have the opportunity to learn from rate by 55% from our the delivery and loading process at AstraZeneca these events. 2015 baseline and third party supplier warehouses. Near misses 2025 target 2019 update Driver safety: 55% The collision rate has included trucks moving while still being loaded, Highlights pedestrians almost being struck by vehicles and reduction in collisions decreased 23% in 23% miscommunication between drivers and those per million kilometres 2019, a 31% reduction AstraZeneca ranked 6th in decrease in the unloading vehicles. We met with industry experts driven from 2015 since 2015 Global wellbeing challenge collision rate and our largest transporters to identify best baseline Employees from 43 countries participated in the in 2019 practices. Following a review of all our warehouses, 100-day Virgin Pulse Global Challenge (VPGC)® a standard was developed that included minimum Status: On plan 2019. The 2019 challenge saw a 27% increase in requirements for securing vehicles, personal the number of participants from 2018 and together, protective equipment for pedestrians, and driver we tracked 1,941,198 miles. The online programme and warehouse communication. includes physical and psychological health risk 2025 target 2019 update assessments, step tracking, and modules for Healthy workforce: 71% of sites promote nutrition, sleep and a mental wellbeing. 80% of sites/ marketing the four Essential companies have all Health Activities Russia Wellbeing Programme awarded four Essential Health Silver Stevie® Award in the HR Achievement in Activities in place: Workplace Health & Wellbeing category achieved healthy eating and by the AstraZeneca Russia Wellbeing Programme. drinking, tobacco cessation, physical fitness and workplace pressure management
Status: On plan Sustainability approach Access to healthcare Environmental protection Ethics and transparency Notices
Responsible supply chain AstraZeneca Sustainability Report 2019 57
Why it matters Business connection Approach Governance A large supply chain amplifies Our business success depends on a resilient, We support suppliers in building their own Our procurement and global external sourcing transparent and inclusive supply chain that sustainability capabilities and by holding them to teams have a shared responsibility to execute our impacts on society and the planet, supports responsible development and high standards. We aim to work only with suppliers vision in this area. Our Chief Procurement Officer, both the positives and negatives. manufacturing. We interact with an extensive whose values are consistent with our own and who who reports to the Executive Vice-President of network of suppliers globally, and this reach gives are committed to developing inclusive, resilient Operations, leads our procurement strategy. us the opportunity – and responsibility – to promote This year we appointed a Global Procurement A supply chain itself is made up of workforces that and transparent businesses. Throughout the life practices with our suppliers that are socially and Sustainability Lead. We expect every employee deserve good treatment, operations that can reduce of our relationship with each supplier, we seek to environmentally sustainable. We believe embedding and contractor who sources goods and services their environmental footprints, and neighbours of ensure that their conduct matches the expectations sustainability throughout our supply chain through on behalf of AstraZeneca to follow responsible communities that they affect. Supply chains also outlined in our Global Standard Expectations of collaboration with our suppliers increases business business processes, which are embedded in help connect the raw and processed materials that Third Parties. value for all. our Global Procurement Standard. We give can bring life-changing medicines to patients. Inclusive – Suppliers create value for procurement professionals detailed training on Our work contributes to these Sustainable Development Goals: all employees and people within their responsible procurement, and we make that Description local communities. training available for other employees to access. Resilient – Suppliers’ operations are adaptive Company processes for sourcing external Our Vice-President of Global External Sourcing, to climate change and resource scarcity. resources, including building robust supplier who also reports to the Executive Vice-President relationships with considerations of suppliers’ Transparent – Sustainability practices of Operations, manages our responsible sourcing environmental and social practices. across our worldwide supply chain are strategy for our critical manufacturing partners in readily verified. the Active Pharmaceutical Ingredient, Formulation and Packaging, and Device categories. We collaborate most closely with these partners on sustainability opportunities and challenges. Together, these teams ensure responsible conduct across our supply chain.
Manufacturing employees confirming distribution information First Supplier Diversity Summit in Brazil Sustainability approach Access to healthcare Environmental protection Ethics and transparency Notices
Responsible supply chain AstraZeneca Sustainability Report 2019 58 continued
Sustainability in action Responsible Sourcing Practices
Positive Sourcing 1 2 3 We launched our Positive Sourcing programme for Delivering AstraZeneca’s sustainability targets Ensuring we support our suppliers Innovating together to meet sustainable procurement driven by our collective Our category managers partner with suppliers to with their own sustainability journey today’s sustainability challenges responsible sourcing actions – actions that create a deliver against our challenging targets. In 2018 we created the Sustainability Partner Guide We have committed to launching our more inclusive, resilient and transparent value chain. and Framework to set clear expectations for our next-generation inhaler with near-zero global Our ambition is to achieve 100% ethical spend – critical manufacturing partners. This framework warming potential (GWP) propellants by 2025 as ensuring that all categories have a sustainability Science-Based Targets: Achieve provides a common way for our sourcing teams part our Ambition Zero Carbon commitments. strategy and performance measures in place our Scope 3 emissions target to assess and reward sustainability performance. by 2025. We are currently working with propellant suppliers Since launch, 89 manufacturing partners with to innovate to achieve our objectives and expect To kick off this ambitious objective, we ran our 131 sites worldwide were evaluated for overall that the propellant used in the next generation Positive Sourcing campaign – a week-long event Sustainable Packaging: Achieve sustainability performance, making up nearly pressurised metered-dose inhalers (pMDI) will have kicked-off by our Chief Procurement Officer to 95% sustainable paper in secondary 10% of AstraZeneca’s total spend. a Global Warming Potential that is 90–99% lower drive further awareness and engagement of our packaging by 2022 Overall Sustainability Framework performance:1 than propellants used in older pMDIs. See more in employees on the importance of responsible Product environmental stewardship. sourcing practices. Air to Sea Transportation Gold-Rated 10% We have already made some significant progress. Conversion: Achieve 64% of all Silver-Rated 11% 4 Throughout our organisation, we are actively global volumes by sea and rail freight monitoring business risk and promoting responsible by the end of 2020 Bronze-Rated 9% Promoting supplier diversity across our markets sourcing practices in a number of ways: Sustainability Learner 70% We appreciate the importance of having an Monitoring Business Risk: EV100 Fleet: Achieve 100% inclusive and diverse supply chain and developed Through our third-party risk management process green vehicle fleet by 2025 the framework for the AstraZeneca Programme (3PRM), we select suppliers to complete required Global Expansion, with the target to implement the assessments to maintain oversight of our supply programme in 10 new markets outside of the US To further partner with suppliers we initiated chain and where we are spending our money, Scope 3 emissions using primary by 2025. therefore reducing our risk. In 2019, 89% of spend data decreased to 20%, and 2% Science Based Targets (SBT) and RE100 training We hosted the first AstraZeneca Supplier Diversity was assessed through our 3PRM process. improvement since 2018 for our critical direct manufacturing partners. We held these two training sessions with over 50 of Summit in Brazil, where we met with suppliers and Promoting Responsible Sourcing Practices: our critical manufacturing partners in attendance industry partners to share information about the We promote responsible sourcing practices by in 2019. Setting SBTs is a leading practice we importance of inclusion and how we can make working with suppliers in four ways: to deliver our recognise within our framework. positive change in the community together. sustainability targets, support suppliers' journeys, First Industry Forum – AstraZeneca partnered with innovating on challenges, and promoting diversity. industry peers to launch the first Pharmaceutical Industry Supplier Diversity Forum in the UK and Europe. Industry leaders, diverse entrepreneurs and advocacy partners networked and shared ideas on how to make a positive impact though diversity and inclusion, enhanced innovation and sustainable practices. Sustainability approach Access to healthcare Environmental protection Ethics and transparency Notices
Responsible supply chain continued AstraZeneca Sustainability Report 2019 59
Challenges Sustainability in action Targets Supply chains are complex. This poses challenges Mapping our suppliers for improving capabilities, which are most effective We are the first pharmaceutical company The map includes 96 countries disclosing data when done in collaboration with peers. We continue to share an online interactive map showing to balance quick progress from stand-alone points on suppliers, site operations, Access to 2025 target 2019 update the countries of our critical direct partners healthcare programmes, and demographics. AstraZeneca initiatives with that of the more lasting Ensure 100% of spend 89% of spend (our Active Pharmaceutical Ingredient, results brought about through deep collaboration is assessed through assessed through our Formulation and Packaging, and The search by country feature explores our with industry. We know the only long-term path our third-party risk 3PRM programme, Device suppliers). sourcing and manufacturing around the world forward is through the Pharmaceutical Supply Chain management (3PRM) up from 82% in 2018 involved in delivering our medicines to patients, Initiative (PSCI) and similar efforts. We recognise transparency as a foundation of and more. programme trust, something that we want to build with all our See the Transparency Map in action here. stakeholders – employees, patients, partners, Highlights Status: On plan healthcare professionals, governments, investors Collaborating across industry and society. So, we’re reimagining sustainability We are a member of the Pharmaceutical Supply reporting by aiming to make the same information 2025 target 2019 update Chain Initiative (PSCI), an industry collaboration accessible to all at the same time. The launch of 75% of all critical 34% of critical that supports principles for responsible supply the new interactive Transparency Map is part of manufacturing manufacturing chain management for ethics, labour, health, that commitment. partner sites are rated partners achieved safety, environment and related management ‘Bronze’ or better 'Bronze' or better systems. These principles are incorporated into in our sustainability on our sustainability our Expectations of Third Parties Handbook. 2 framework framework We aim to collaborate with industry in an effort to reduce duplication of the industry’s suppliers’ Status: On plan efforts to report on their sustainability performance.
2025 target 2019 update Launch supplier One new Supplier diversity programmes Diversity Programme in 10 new countries launched in Brazil (outside of the United States)
Status: On plan
Screenshot of information from the Transparency Map for our site in Wuxi, China Sustainability approach Access to healthcare Environmental protection Ethics and transparency Notices
Human rights AstraZeneca Sustainability Report 2019 60
Why it matters Description Approach Everyone deserves the basic rights Company efforts to uphold rights inherent to all This includes taking action on both basic and • Conflict Minerals Statement – our position human beings. These rights are interrelated, as emerging issues such as workforce treatment, on ensuring that any new 'intelligent' medical and freedoms inherent to all human stated in the Universal Declaration of Human labour rights, and data privacy. Managing human products that we manufacture or contract to beings. Human rights protect basic Rights. This includes the rights to health, rights is an ongoing and evolving process that is manufacture containing tantalum, tin, tungsten needs such as the right to health; non-discrimination, humane treatment and reflected across all functions at AstraZeneca. We or gold will be 'conflict-free'. data privacy. intend to prevent human rights issues by taking bodily integrity such as freedom • Code of Ethics – our guidance for living our the proper corrective action as soon as issues Values and behaviours with formal mechanisms from slavery; and civil liberties Business connection are identified. such as the right to privacy. to file complaints, as well as our due diligence Respecting human rights is foundational to our As signatories to the UN Global Compact since and corrective action process. We have a ability to retain talent, our social acceptance to 2010, we commit to the Guiding Principles to whistleblowing policy and affiliated systems and Advancing human rights contributes to UN SDG 5 operate and the delivery of other sustainability respect human rights by acting with due diligence processes to protect employees and allow them Gender equality and SDG 8 Decent work and material focus areas such as workforce wellbeing, to avoid infringing on human rights and to address to raise concerns. economic growth, thus supporting the long-term ethical business culture, responsible supply chain, negative impacts. We are also committed to the • Data Privacy Standard – our commitment to act health and wellbeing of society and productivity disease prevention and treatment, and inclusion International Labour Organization (ILO) standards responsibly and safeguard data privacy in all of economies. and diversity. on child labour and minimum working age. We have its digital forms. A right to privacy was stated internal policies, statements and procedures that in the Universal Declaration of Human Rights in Our work contributes to these Sustainable Development Goals: build upon these external commitments: 1948, but in today’s digital society it takes on • Human Rights Statement – our approach to new meaning as technology has outpaced some respect the rights of all people. We conduct legal frameworks. biannual human rights labour reviews in all Learn more about how we promote countries where we have employees. and monitor human rights in the • Modern Slavery Act Statement – our commitment Responsible Supply Chain section. to identify and eliminate, to the fullest extent practicable, modern day slavery and human trafficking from our business. We assess our impacts and publish performance annually in this statement.
AstraZeneca’s Human Rights Statement applies to our employees, extended workforce, supply chain, patients, and community members Sustainability approach Access to healthcare Environmental protection Ethics and transparency Notices
Human rights continued AstraZeneca Sustainability Report 2019 61
Governance Sustainability in action Sustainability in action Our Board of Directors Risk and Audit Committee Continuously improving Upholding the right to privacy annually reviews our Modern Slavery Act through assessments performance and statement, as well as conducting We continue to progress our Privacy management quarterly reviews of non-compliance allegation We conduct a labour review survey every two as the needs of our patients, employees and other metrics. Accountability is held by the Executive years in the more than 100 countries where we stakeholders evolve. We conduct Privacy Impact Vice President (EVP) of Operations, EVP of Human operate. Our 2018 Human Rights Labour Review Assessments (PIAs) for personal data processes Resources and EVP of Global Sustainability and focused on the ILO’s core themes, including which go beyond what is legally required and Compliance, and all SET members who report to freedom of association and collective bargaining, mandate PIAs for all types of processing activities the CEO. We appointed the first Global Head of child labour, discrimination, working hours and worldwide. In 2019, we enhanced our Privacy Employee Relations in 2019. wages, including questions on the Living Wage. Forum, comprised of Deputy Data Protection In 2017 we signed up to the Fair Wage Network Officers for each country and key global functions Partner for success – We became the first life database. The independently produced data to ensure adequate cover and expertise in data sciences member of the Slave-Free Alliance of was used in our 2018 survey to measure against protection worldwide. We also submitted our Hope for Justice in 2019. We are members of PSCI the salaries of all 68,000+ employees and we are Binding Corporate Rules to the Information Human Rights and Labour group. In the Privacy pleased with the results. Commissioner's Office in the UK for re-assessment space, we are members of: the International of their alignment with GDPR. In 2019 our Senior Hope for Justice, a global non-profit organisation Association of Privacy Professionals, the Data Executive Team endorsed making privacy training which aims to end human trafficking and Protection Working Group of the European compulsory to every employee on a regular basis; modern slavery, conducted a gap assessment of Federation of Pharmaceutical Industries and and we also experienced some cyber incidents our risk mitigation processes for modern slavery Associations and Data Protection Legal for which enabled us to test and enhance our cyber and human trafficking. Feedback included that the biopharmaceutical sector. response process. We measure the number of data our strengths are leadership engagement and subject requests we receive per country to monitor Our external KPIs are shared in the third-party management. Areas for improvement compliance with Data Subject Rights requirements. Sustainability Data Summary. included our training. We also conducted 1,786 Privacy Regulatory We also worked with a third-party sustainability Impact Assessments. consultancy to begin an assessment of our overall human rights governance structure and measures. Employee interviews and research was conducted to establish a baseline. As a result, we have convened our first Human Rights Working Group to facilitate cross-functional risk and opportunity management.
We believe it is our responsibility to understand how we are contributing to or hindering human rights Sustainability approach Access to healthcare Environmental protection Ethics and transparency Notices
Human rights continued AstraZeneca Sustainability Report 2019 62
Sustainability in action Targets Challenges Through engagements with external regulators Raising awareness of human rights • Privacy – Dedicated online privacy training and experts we have validated that our highest risk We create training materials that align our includes the following topics: personal data activities related to modern slavery or human trafficking day-to-day practices with our Speak Up culture definition, international privacy principles, data are construction, temporary resources, recruitment, 2020 target 2019 Update of identifying, preventing and reporting concerns, subject rights, Privacy Impact Assessments, facilities, logistics, and hotels. Our challenge is to Improve the We conduct our including for human rights. In 2019, we launched overview of the AstraZeneca Privacy Standard ensure our suppliers and third parties are compliant AstraZeneca global survey every two training for five areas of human rights. and how to identify and report privacy incidents. with our AstraZeneca standards and mitigating these biannual human rights years and there was We offer several general and specific training risks that are outside of our direct control before any • Anti-harassment and anti-bullying – This initiative survey by using Fair no survey scheduled modules to all employees and 14,613 people incidents could occur. set our expectations for behaviour to ensure completed training in 2019. Wage Network data to for 2019 our workforce feels respected, supported and more robustly assess • Highlights safe at work, free from any form of bullying and Anti-Bribery and Anti-Corruption (ABAC) – our performance harassment, be it mental, physical or sexual. Focuses on what constitutes bribery, and how against local living United Nations Global Compact employees can use good judgment to make the wage data We have been Signatories of the United Nations • Speak Up – A Speak Up culture is central to best decisions in carrying out daily work. Global Compact since 2010 and strengthened our our journey in Human Rights, Ethical Business membership as Participants in 2018. Culture and Inclusion and Diversity. We hosted Status: Not yet started a week-long Speak Up campaign that gave all Assessing living wage across the globe employees the chance to share a video of their 14,613 We utilise the Fair Wage Network database to Speak Up stories and watch video demonstration employees help assess the living wage within each country completed Privacy scenarios. See more in Ethical Business Culture. where we operate. Standard training in 2019 Sustainability approach Access to healthcare Environmental protection Ethics and transparency Notices
Notices AstraZeneca Sustainability Report 2019 63
Footnotes Cautionary statements regarding
2019 performance review Investments in health systems forward-looking statements 1 Scope is 47 APIs for which data is available to calculate safe API discharge limits 1 World Health Organization. Global status report on non- and based on 2018 manufacture. communicable diseases 2014. Available at: http://apps.who.int/ In order, among other things, to utilise the irisbitstream/10665/148114/1/9789241564854_eng.pdf?ua=1 Global development contribution Last accessed November 2017 ‘safe harbor’ provisions of the US Private 1 https://www.who.int/news-room/fact-sheets/detail/noncommunicable-diseases 2 https://www.mckinsey.com/featured-insights/employment-and-growth/how- Environmental protection Securities Litigation Reform Act of 1995 and the advancing-womens-equality-can-add-12-trillion-to-global-growth 1 Scope is 47 APIs for which data is available to calculate safe API discharge limits and based on 2018 manufacture UK Companies Act 2006, we are providing the 3 https://www.weforum.org/projects/closing-the-gender-gap-accelerators 2 At one AZ supply site there was a single measured API concentration that 4 https://sdgcompass.org/sdgs/sdg-8/ following cautionary statement: exceeded our API discharge limits. This followed a change implemented to 5 https://www.worldwildlife.org/threats/water-scarcity reduce emissions; subsequently, further process improvements and monitoring 6 https://siteresources.worldbank.org/INTURBANDEVELOPMENT/ were implemented, demonstrating emissions are now consistently below the This Sustainability Report contains certain Resources/336387-1334852610766/Chap3.pdf safe API discharge limits. 7 At one AZ supply site there was a single measured API concentration that forward-looking statements with respect to the exceeded our API discharge limits. This followed a change implemented to reduce Environmental protection overview 1 www.washingtonpost.com/graphics/world/ecological-footprint/?utm_term=. operations, performance and financial condition emissions; subsequently, further process improvements and monitoring were ad0460d943cb implemented, demonstrating emissions are now consistently below the safe API of the Group. Forward-looking statements are discharge limits. 2 https://www.unglobalcompact.org/docs/publications/2019_HealthReport_Web.pdf statements relating to the future which are 8 Scope is 47 APIs for which data is available to calculate safe API discharge limits Greenhouse gas reduction and based on 2018 manufacture. 1 https://www.ipcc.ch/site/assets/uploads/2018/02/ipcc_wg3_ar5_summary-for- based on information available at the time such 9 https://www.epa.gov/ghgemissions/global-greenhouse-gas-emissions-data policymakers.pdf 10 https://climate.nasa.gov/vital-signs/carbon-dioxide/ 2 http://www.lancetcountdown.org/ statements are made, including information 11 https://www.who.int/gho/phe/outdoor_air_pollution/en/ 3 https://www.ripublication.com/ijaerspl2018/ijaerv13n1spl_08.pdf relating to risks and uncertainties. Although we 12 https://www.who.int/publications/10-year-review/medicines/en/ 4 https://www.iema.net/assets/uploads/Special%20 Reportsiema20ghg20report204.10.10.pdf believe that the forward-looking statements Disease prevention and treatment 1 https://www.who.int/news-room/fact-sheets/detail/noncommunicable-diseases Pharmaceuticals in the environment in this Sustainability Report are based on 2 https://publicpolicy.stanford.edu/news/non-communicable-disease-could-cost-47- 1 Scope is 47 APIs for which data is available to calculate safe API discharge limits reasonable assumptions, the matters discussed trillion-2030 and based on 2018 manufacture 3 https://www.who.int/global-coordination-mechanism/ncd-themes/ncd-and-youth/ 2 At one AZ supply site there was a single measured API concentration that in the forward-looking statements may be en/ exceeded our API discharge limits. This followed a change implemented to reduce emissions; subsequently, further process improvements and monitoring were influenced by factors that could cause actual 4 http://gco.iarc.fr/today/data/factsheets/cancers/15-Lung-fact-sheet.pdf. implemented, demonstrating emissions are now consistently below the safe API Accessed August 2019 discharge limits. outcomes and results to be materially different 5 www.cancer.net/cancer-types/lung-cancer-non-small-cell/statistics. from those expressed or implied by these Accessed May 2019 Water stewardship 1 https://www.who.int/globalchange/ecosystems/water/en/ statements. The forward-looking statements Responsible research and development 2 https://www.who.int/news-room/detail/12-07-2017-2-1-billion-people-lack-safe- 1 https://www.who.int/news-room/fact-sheets/detail/the-top-10-causes-of-death drinking-water-at-home-more-than-twice-as-many-lack-safe-sanitation reflect knowledge and information available at 2. Adamko DJ, Friesen M. Why does respiratory syncytial virus appear to cause 3 https://www.who.int/water_sanitation_health/publications/glaas_report_2014/en/ asthma? Journal of Allergy and Clinical Immunology. 2012;130(1):101-102. the date of the preparation of this Sustainability doi:10.1016/j.jaci.2012.05.024. Waste management Report and the Company undertakes no 3. Domachowske JB, Khan AA, Esser MT, et al. Safety, Tolerability, and 1 http://www.euro.who.int/__data/assets/pdf_file/0003/317226/Waste-human- Pharmacokinetics of MEDI8897, an Extended Half-Life Single-Dose Respiratory health-Evidence-needs-mtg-report.pdf?ua=1 obligation to update these forward-looking Syncytial Virus Prefusion F-Targeting Monoclonal Antibody Administered as a Single Dose to Healthy Preterm Infants. The Pediatric Infectious Disease Journal. Inclusion and diversity statements. We identify the forward-looking September 2018:886-892. doi:10.1097/inf.0000000000001916. 1 https://www.bcg.com/en-us/publications/2018/how-diverse-leadership-teams- boost-innovation.aspx statements by using the words ‘anticipates’, Environment’s impact on health 2 https://builtin.com/diversity-inclusion/diversity-in-the-workplace-statistics AstraZeneca PLC 1 https://www.who.int/news-room/detail/15-03-2016-an-estimated-12-6-million- ‘believes’, ‘expects’, ‘intends’, ‘aims’, ‘aspires’, 3 https://www.mckinsey.com/business-functions/organization/our-insights/delivering- deaths-each-year-are-attributable-to-unhealthy-environments through-diversity ‘seeks’ and similar expressions in such 1 Francis Crick Avenue 2 https://www.who.int/airpollution/en/ Cambridge Biomedical Campus 3 https://www.who.int/airpollution/events/conference AP_exposure_and_NCDs_ Workforce wellbeing and safety statements. Important factors that could cause background.pdf?ua=1 1 https://www.cdc.gov/hrqol/wellbeing.htm# actual results to differ materially from those Cambridge CB2 0AA, UK 4 https://www.who.int/sustainable-development/transport/health-risks/air-pollution/ 2 https://www.who.int/mental_health/in_the_workplace/en/ en/ contained in forward-looking statements, certain T: +44 (0)20 3749 5000 Responsible supply chain 5 https://www.ncbi.nlm.nih.gov/pmc/articles/PMC5923716/ 1 Considered by critical manufacturing partner site. 131 supplier sites in total in 2019. of which are beyond our control, include, among 6 http://www.scielo.org.za/pdf/caj/v28n1/11.pdf 2 Target applies to suppliers in the Active Pharmaceutical Ingredient (API) and 7 http://cen.acs.org/environment/pollution/Air-pollution-kills-780000-people/97/i17 Formulation and Packaging (F&P), and Device categories. All suppliers are in scope other things, those factors identified as risks 8 https://www.sciencedirect.com/science/article/pii/S0160412017309005 for the framework; however, suppliers are only in scope for PSCI environmental sustainability assessments if they cover >90% of our spend per the Sustainability and challenges. 9 https://www.sciencedirect.com/science/article/pii/S0048969719337453 Partner Guide and Framework.