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Novartis in Society ESG Report 2020 2 | Novartis in Society Contents Novartis in Society | 3 Novartis in Society ESG Report 2020 2 | Novartis in Society CONTENTS Novartis in Society | 3 Contents 2020 highlights 4 Our response to COVID-19 5 Who we are 6 How we create value 8 Message from the Chairman 10 Message from the CEO 11 Our journey to build trust with society 12 Valuing our impact 16 Strategic areas 18 Holding ourselves to high ethical standards 18 Being part of the solution on pricing and access 30 Addressing global health challenges 46 Being a responsible citizen 54 About this report 68 Performance indicators 2020 69 Selected training programs for associates 74 Task Force on Climate-related Financial Disclosures (TCFD) 75 Novartis GRI Content Index 78 Sustainability Accounting Standards Board (SASB) Index 82 Appendix: corporate responsibility material topic boundaries 84 Appendix: corporate responsibility materiality assessment issue cluster and topic definitions 86 Appendix: external initiatives and membership of associations 88 Appendix: measuring and valuing our impact 89 Independent Assurance Report on the 2020 Novartis in Society ESG reporting 90 Inside cover photo Novartis employees at a production facility in Torre Annunziata, Italy. Cover photo Dr. Ngo Viet Quynh Tram (right) watches as a student practices the correct way to use a mask at the Hue University of Medicine and Pharmacy in central Vietnam. Dr. Tram participated in a nationwide effort to train all final-year medical students how to screen, diagnose and treat COVID-19 patients. The program was supported by the Novartis COVID-19 Response Fund. 4 | Novartis in Society 2020 highlights ETHICAL STANDARDS 22 98% 8 400+ ETHICAL COMMITMENTS ASSOCIATES SUPPLIERS included in our new Code of Ethics, completed global e-training on the new risk-assessed through our Third-Party co-created with more than 3 000 Code of Ethics (rollout to be completed Risk Management program, with 120 Novartis associates by February 2021) engagements stopped due to assess- ment outcomes ACCESS TO HEALTHCARE 66m 369 000 8m PATIENTS PATIENTS PEOPLE reached with products through our reached with our emerging market reached with health education at access activities brands in 2020 awareness events GLOBAL HEALTH 980m 3 400+ 7.3m TREATMENT COURSES PATIENTS PATIENTS of Coartem delivered in the past two treated for sickle cell disease with reached with free multidrug decades in malaria-endemic countries hydroxyurea in 11 treatment centers in therapy for leprosy since 2000 Ghana CORPORATE CITIZENSHIP 19% 45% 60 000 REDUCTION WOMEN HOURS in greenhouse gas emissions vs. 2016 in management of learning on topics such as innovation, baseline digital skills, and access to medicines during Curiosity Month in September O16UR | resNovartisPONse Annual TO COVID-19 Review 2020 Novartis in Society | 5 Our response response to to COVID-19 COVID-19 In the face of a global crisis, Novartis quickly mobilized research and development capabilities, medicines, clinical trial expertise and philanthropic aid to address the COVID-19 pandemic. Supporting our associates We took steps to support our associates and their families as they adapted to new conditions and commitments such as working remotely, educating children at home, and caring for loved ones. We provided additional paid leave and enhanced childcare support for associates in critical roles who needed to be on site. We announced a new global policy to give office-based associates more flexibility to choose how, where and when they work. Clinical investigations We played our part in the scientific effort to find treatments for COVID-19. We quickly designed and launched three Phase III, placebo-controlled trials to determine if our products could help patients with certain COVID-19-related symptoms. We provided these and other medicines to investiga- tor-initiated trials and managed access programs upon request. We are also collaborating with Molecular Partners to develop two potential antiviral treatments for COVID-19 based on a new class of protein therapeutics known as DARPin®. Access and pricing commitments Novartis is making 15 drugs that treat key symptoms of COVID-19 available to low-income and lower-middle-income countries at zero profit until a vaccine or curative treatment is available. Our Sandoz Division is maintaining prices on a basket of essential medicines that may help in the treatment of COVID-19. Collaborating with partners We are making efforts to leverage our capabilities in discovery, development and scale-up manufac- turing. We are partnering with multi-stakeholder consortia, including the COVID-19 Therapeutics Accelerator, coordinated by the Bill & Melinda Gates Foundation, the Wellcome Trust and Master- card, as well as a partnership supported by the Innovative Medicines Initiative. We are participating with the University of California, Berkeley, and other pharmaceutical companies to develop an antiviral molecule to potentially treat all coronaviruses, including the virus that causes COVID-19. Community funds Novartis committed to donating up to USD 40 million to support communities around the world impacted by the pandemic. This includes the Novartis COVID-19 Response Fund and a US COVID- 19 Community Response Fund, established by Novartis and the Novartis US Foundation, that will provide cash and in-kind donations for immediate response and recovery efforts related to the pandemic in the US. 46 | Novartis Annualin Society Review 2020 Who we we are are Our purpose We reimagine medicine to improve and extend people’s lives. We use innovative science and technology to address some of society’s most challenging healthcare issues. We discover and develop breakthrough treatments and find new ways to deliver them to as many people as possible. We also aim to reward those who invest their money, time and ideas in our company. Our company INNOVATIVE MEDICINES NOVARTIS TECHNICAL OPERATIONS (NTO) The Innovative Medicines Division has two business units: is responsible for making our innovative medicines, devices Novartis Oncology and Sandoz products, and Novartis Oncology focuses on delivering them to our patented treatments for a variety customers across the world. of cancers and rare diseases. dicines/Pharm Me ace ive ut NOVARTIS BUSINESS Novartis Pharmaceuticals at ica ov ls SERVICES (NBS) Novartis Pharmaceuticals nn Bu I si consolidates support focuses on patented treat ments s ne n s io s services across our organi- in multiple disease areas to t c s enhance health outcomes for n e zation, helping drive effi- u r f v i ciency, simplification, stan- patients and offer solutions to c e t e dardization and quality. healthcare providers. a s r o ( N p r B CORPORATE FUNCTIONS o SANDOZ S C ) support the enterprise in The Sandoz Division offers specific areas of expertise, patients and healthcare including finance, human y profes sionals high-quality, gy g resources, legal, communica- lo affordable generics and o S ol tions, and ethics, risk and a co biosimilars. n nc d On compliance. o / M /sO z a ) es n O ine ufa T cin cturing (N dici eed e M M atitviev InInnoovav RESEARCH AND DEVELOPMENT (R&D) The Novartis Institutes The Global Drug for BioMedical Research Development (GDD) (NIBR) is the innovation organization oversees engine of Novartis. NIBR the development of new focuses on discovering medicines discovered new drugs that can change by our researchers and the practice of medicine. partners. 4 | Novartis Annual Review 2020 WHOWhO weWE AareRE Novartis AnnualNovartis Review in Society 2020 | 75 Who we are Our purpose Our values and behaviors We reimagine medicine to improve and extend people’s lives. We use innovative INSPIRED CURIOUS UNBOSSED INTEGRITY science and technology to address some of society’s most challenging healthcare ENGAGE OUR PEOPLE LEARN CREATE CLARITY BE HONEST STRIVE FOR PATIENTS BE OPEN SERVE OTHERS HAVE COURAGE issues. We discover and develop breakthrough treatments and find new ways to LIVE OUR PURPOSE BE SELF-AWARE OWN YOUR ACTIONS DO WHAT’S RIGHT deliver them to as many people as possible. We also aim to reward those who invest their money, time and ideas in our company. Our company Our people The greatest strength of Novartis is our people, whose diversity, energy and INNOVATIVE MEDICINES NOVARTIS TECHNICAL OPERATIONS (NTO) creativity are crucial to our success. The Innovative Medicines Division has two business units: is responsible for making our innovative medicines, devices Novartis Oncology and Sandoz products, and Novartis Oncology focuses on delivering them to our patented treatments for a variety customers across the world. of cancers and rare diseases. dicines/Pharm Me ace ive ut NOVARTIS BUSINESS Novartis Pharmaceuticals at ica ov ls SERVICES (NBS) Novartis Pharmaceuticals nn Bu I si consolidates support focuses on patented treat ments s ne n s io s services across our organi- in multiple disease areas to t c s ANNUAL TRAINING WOMEN enhance health outcomes for n e zation, helping drive effi- u r HEADCOUNT NATIONALITIES HOURS PER EMPLOYEE IN MANAGEMENT f v i ciency, simplification, stan- patients and offer solutions to c e t e dardization and quality. healthcare providers. a s r o ( N p 110 738 142 45.7 45 % r B CORPORATE FUNCTIONS o SANDOZ S C ) support the enterprise in The Sandoz Division offers specific areas of expertise, patients and healthcare including finance, human profes sionals high-quality, y gy resources, legal, communica- og Our products l affordable generics and o S ol tions, and ethics, risk and a co biosimilars. n nc Our products address most major disease areas and are sold in approximately 155 countries around the world. d On compliance. o / Our manufacturing facilities produced 72 billion treatments in 2020. M /sO z a ) es n O ine ufa T cin cturing (N dici eed We develop and produce innovative medicines to We also offer about 1 000 generic and bio- M M itvieve address patient needs in disease areas where our similar medicines covering a broad range of oovavat InInn experience and knowledge have the potential to therapeutic areas.
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