Corporate Responsibility Report Summary 2013 “Alongside other interventions, an effective vaccine could really help reduce the burden of malaria for Africa.” Corporate Responsibility Report Summary 2013 1
About GSK Our mission
Cover image GSK’s mission is to improve the Nahya Salim, a paediatrician and research scientist in Tanzania, Africa, has been quality of human life by enabling working on GSK’s RTS,S malaria vaccine trials at the Ifakara Health Institute people to do more, feel better, since 2007. She is currently overseeing trials of the new live longer. We are doing this by vaccine, as well as researching how malaria interacts with other diseases, such as developing innovative products intestinal worms, TB and HIV. and improving access to healthcare for patients around the world.
This summary contains highlights from External recognition our performance across the four areas of our responsible business approach: Topped the biannual Access Became first company to be Achieved Bronze ranking in Health for all to Medicines Index since it awarded global certification to RobecoSAM’s 2014 Our Behaviour began in 2008 (the next index the Carbon Trust’s Water Sustainability Yearbook (based
Our People is in 2014). REDUCING WATER Standard in recognition of our on 2013 submission), putting Our Planet YEAR ON YEAR year-on-year reductions in us in the top 10% The only healthcare company operational water use globally. of our industry. to be included in the CDP Your feedback counts Performance Leadership Index We welcome your feedback on our and the CDP Disclosure Member of FTSE4Good since Narrowly missed inclusion of responsible business performance and Leadership Index in 2013. 2004. the Dow Jones Sustainability reporting. Please contact us at Ranking in 2013 with a score [email protected]. You can also request of 81. to receive regular updates on our progress. Note to SB. Please keep coloured gradient on the buttons for both normal and rollover actions please.
Corporate Responsibility Report Summary 2013 2
CEO’s statement As a global healthcare company, GSK can play an important role in meeting societal challenges. In 2013, we continued to develop innovative life-saving drugs Message from our CEO and work with partners to get medicines to the people that need them most.
In 2013, we made new commitments to In 2013, we donated our four billionth tablet Our continued commitment to transparency increase transparency of our clinical of albendazole to treat intestinal worms and was also evident in our efforts to disclose research by announcing our support for the lymphatic filariasis – part of our long-term and address our environmental impacts. AllTrials campaign and becoming the first commitment to tackle neglected tropical We are the only healthcare company listed pharmaceutical company to commit to diseases – and delivered 862 million vaccine in both the CDP’s Disclosure Leadership publishing the detailed clinical study reports doses worldwide. We also strengthened our Index and its Performance Leadership Index for all of our medicines. In May, we were the global initiatives to tackle non-communicable in 2013, for our clear reporting and first in our industry to launch an online diseases such as cancer, diabetes, performance on climate impacts. system enabling researchers to request respiratory and heart disease. access to anonymised patient-level data My job as CEO is to deliver a healthy from our clinical trials. I am pleased that I am also delighted we achieved a company, and that is only possible with Over the past six years we have been some other companies have now also significant milestone for our malaria vaccine healthy employees. Our ground breaking making fundamental changes to deliver adopted this approach. candidate which demonstrated that it could Partnership for Prevention initiative will give innovation and access to our products potentially halve the number of malaria benefits-eligible employees and their for patients and customers, and improved We also announced plans to evolve the way cases in young children. This vaccine has families equal access to preventive and sustainable financial performance for we sell and market products to healthcare the potential to save hundreds of thousands basic healthcare benefits wherever they are our shareholders. professionals, to further align our activities of childrens’ lives and we plan to file for based. with the interests of patients and remove approval during 2014. We are committed to 2013 was the most productive period of even the perception of conflict of interest. making it available at a not-for-profit price. In 2014, we will continue to challenge our R&D output in the company’s history. Of the Specifically, we plan to stop direct business model at every level, to ensure we six major new medicine files we profiled at payments to healthcare professionals for There is no higher priority for me than the are responding to the needs of patients and the start of 2013, five were approved and speaking engagements and for attendance values-based conduct of our employees. meeting the wider expectations of society. we are expecting regulatory decisions for at medical conferences, and extend our US In the past few years, we have focused the remaining asset in this group in the first ‘Patient First’ programme globally, to on bringing to life our values and being half of 2014. In addition, we launched our decouple sales team remuneration from thoughtful about what they really mean new injectable quadrivalent flu vaccine in scrip generation. at a human level. the USA. Together, these new drugs offer patients a range of new treatment options We continue to expand access to our It is because of my strong belief in our and represent substantial opportunities for medicines to people living in the company’s values that the allegations made business growth. developing world. in China about the behaviour of some individuals were so disappointing. The Sir Andrew Witty We continue to take action to reform our During 2013, we signed a ground-breaking investigation into this matter by the Chief Executive Officer business model to meet the expectations of five-year partnership with Save the Children, authorities in China continues and we are society and deliver our mission, in line with to combine the resources and capabilities cooperating fully. As a company, we are our values. of our two organisations to help save the committed to learning the lessons and lives of one million children living in the taking all necessary action in relation to poorest countries in Africa. the outcome of this investigation. Note to SB. Please keep coloured gradient on the buttons for both normal and rollover actions please.
Corporate Responsibility Report Summary 2013 3
Who we are GSK is a science-led global healthcare company that researches and manufactures a range of products to help people do more, feel better and live longer.
As a global healthcare company, our Pharmaceuticals Vaccines Consumer healthcare commercial success depends on creating innovative new medicines, vaccines and healthcare products, and making these accessible to as many people who need them as possible. By doing this, we will be able to grow our business and provide benefits to patients, consumers, society, our employees and our shareholders. We put our values at the heart of every decision we make, and we commit to help £17.9bn 67% £3.4bn 13% £5.2bn 20% people do more, feel better, live longer. Turnover of Group Turnover of Group Turnover of Group We develop and make medicines to treat a Our vaccines business is one of the largest in We develop and market a range of broad range of conditions including: the world, producing more than 30 vaccines consumer health products based on respiratory disease, cancer, heart disease, for children and adults against a range of scientific innovation. We have brands in four bacterial and viral infections such as HIV, infectious diseases. In 2013, we delivered main categories: Total wellness, Oral care, lupus and skin conditions. 860 million vaccine doses, over 80% of them Nutrition and Skin health. for use in developing countries.
Our values are Where we are Employees by region 2013 (%) Turnover by region 2013 (%) transparency, respect We have a significant global commercial 3 presence in more than 150 markets, with a 3 7 for people, integrity and 17 network of 86 manufacturing sites 7 £26.5bn 33 patient focus. worldwide, and R&D centres in the UK, USA, 2013 Group turnover Spain, Belgium and China. 38 25
39 28
USA USA Europe Europe EMAP EMAP Japan Japan Other Other Note to SB. Please keep coloured gradient on the buttons for both normal and rollover actions please.
Corporate Responsibility Report Summary 2013 4
How we create value We are adapting our business model and pursuing a strategy that delivers sustainable performance through innovation and expanding access, driven by our values.
Our mission Our strategic priorities – grow, deliver, Our business model Outputs We have a challenging and inspiring simplify – help us work towards our vision, We have a broadly-based and balanced Delivering innovation and maximising mission: to improve the quality of human life while enhancing business performance and business across pharmaceuticals, vaccines access to our products generates value by enabling people to do more, feel better, delivering sustainable growth. and consumer healthcare. At the core of our for patients, and society more widely. live longer. This mission gives us the business model are the concepts of innovation purpose to develop innovative medicines We focus on understanding the needs of and access. We create value by researching Our primary contribution is to make and products, and make them available to as patients, consumers and individual markets and manufacturing innovative and high products that provide benefits to patients many people who need them as possible. so we can channel our research into quality products, and making these and consumers. developing appropriate products. accessible to as many people who need Successful delivery of this generates Our mission is underpinned by a number These insights also enable us to adapt them as possible. of key factors. our business model to improve availability profitable and sustainable performance. and affordability. Improving healthcare and making it In turn, this allows us to generate value To achieve our mission, we rely on our affordable and accessible to more people and returns for our shareholders, and people – their knowledge, their expertise is a huge challenge, and one that requires enables us to reinvest in the business. and their enthusiasm – and put our values a combined effort. at the heart of every decision we make. We also create value by making direct To meet this challenge, everyone involved in and indirect economic and social providing healthcare – industry, healthcare contributions in the countries where we Our mission Our business model Outputs professionals, universities, healthcare operate. These wider benefits to society funders including governments, charities include contributions through tax, and regulators – need to work together. employment and enhancing the well-being To improve the quality R&D Benefits to patients With this in mind, partnership and of local communities through our global community initiatives. of human life by enabling Discovering and and customers collaboration is a key principle of our people to do more, developing innovative business approach. feel better, live longer. medicines Cash and profit We continue to reform our business model. Underpinned by generation For example, we have taken industry-leading Manufacturing Our values positions to improve global public health Making and shipping through our pricing and access strategies, Shareholder value high standard products increase transparency of our clinical trial and returns Our strategic priorities around the world data and modernise our commercial practices and interactions with customers. Our people Commercialisation Wider benefits and distribution to society Our insights Increasing access to our products
Reinvestment Note to SB. Please keep coloured gradient on the buttons for both normal and rollover actions please.
GSK Corporate Responsibility Report 2013 5 Health for all Driven by our steadfast focus on the patient, we are bringing health benefits to more people around the world through our open, flexible and collaborative approach to innovation and access to healthcare.
In focus
Philomene is being treated for breast cancer at the Butaro Cancer Centre of Excellence, Rwanda. As part of our work to address non-communicable diseases in the developing world, we are funding the training of cancer healthcare professionals in Rwanda in partnership with charities and the government. This will increase access to trained cancer specialists for patients like Philomene. Note to SB. Please keep coloured gradient on the buttons for both normal and rollover actions please.
Corporate Responsibility Report Summary 2013 6
Health for all Overview
To bring new vaccines and medicines to patients faster, we are accelerating our External perspective External perspective innovation processes, opening up our research findings and resources to others, “Community health workers provide “Given the scale of the disease and bringing together partners to explore vital services to rural communities burden in developing countries, new delivery models and flexible pricing and GSK has been a pioneer and we look forward to our continued strategies to increase access to our existing range of products. trail-blazer in supporting the work with GSK to develop essential Internal perspective deployment of CHWs across Africa. lifesaving health interventions. We have been at the forefront of the The One Million Community Health We’re particularly excited about transformation in our industry’s approach “Scientific and technological to global healthcare over the past decade, Workers Campaign will save lives GSK’s long-term commitment to but we know there is still much more to innovation will enable us to make and help rural communities in global health R&D and innovation be done to meet major health challenges. the advances necessary to bring sub-Saharan Africa to break free of in malaria.” We want to play a leading role in this effort, new medicines, in new ways, to while generating the returns we need to extreme poverty. By promoting the Dr. Trevor Mundel invest and grow our business. patients everywhere. At GSK, we are systematic deployment of a million President, Global Health Programme, working with many partners and CHWs, roughly 1 per 100 Bill & Melinda Gates Foundation We remain committed to improving across many areas – such as gene treatment options and life-saving vaccines households in rural areas, the and medicines through our strategies to therapy and biopharmaceuticals – Campaign will support sub-Saharan extend access and foster innovation, and to develop medicines for diseases Africa to make major strides our continued focus on diseases of the where effective treatments do not developing world. The ways in which we towards the Millennium have evolved our business model enable us currently exist. We’re also playing Development Goals and beyond.” to make a significant contribution to the UN’s our part in exploring new ways to Jeffrey Sachs Millennium Development Goals for 2015. stimulate innovation in areas where Director of the Earth Institute and the Through our own work and collaboration the commercial incentive is weaker Sustainable Development Solutions Network with others in our sector and beyond, we – for example on TB, antibiotic are creating sustainable solutions that will resistance or Alzheimer’s.” improve quality of life by enabling people to do more, feel better and live longer. Patrick Vallance President, Pharmaceuticals R&D, GSK Note to SB. Please keep coloured gradient on the buttons for both normal and rollover actions please.
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Health for all 2013 at a glance
Innovative science to create value for all Access to healthcare Diseases of the developing world HIV/AIDS Of the six major new medicines we profiled Increased our focus on non-communicable Achieved a major milestone in our malaria Obtained regulatory approval in the USA, at the start of 2013, five were approved. diseases such as diabetes and cancer in vaccine candidate, which demonstrated that Canada and Chile for Tivicay (dolutegravir), We are expecting regulatory decisions developing countries through research and over 18 months of follow-up, RTS,S almost a new treatment option for people living for the remaining asset in the first half of training for healthcare providers. halved the number of malaria cases in young with HIV. 2014. We also launched a new injectable children (aged 5-17 months at first quadrivalent flu vaccine in the USA. vaccination) and reduced by around a quarter the malaria cases in infants (aged GSK accounted for 19% of FDA 6-12 weeks at first vaccination). new drug approvals.
Access to healthcare 6 Partnered with Save the Children to help save the lives of one million children. Innovative science to create value for all Diseases of the developing world HIV/AIDS Donated our four billionth albendazole tablet Agreed to grant the UNITAID-backed to fight lymphatic filariasis and intestinal Medicines Patent Pool, a voluntary £3.4bn Access to healthcare worms as part of our commitment to work licence for paediatric formulations with partners to control or eliminate 10 Invested £3.4bn in global research and Delivered 46.8 million vaccine doses to of the antiretroviral medicine, of the 17 neglected tropical diseases. development for innovative medicines, GAVI Alliance at affordable prices to protect abacavir, in 118 countries, vaccines and consumer products. children from pneumococcal diseases, where 98% of HIV positive rotavirus gastroenteritis and cervical cancer. children live. We have 40 new molecular entities in phase II/III clinical development. 46.8m 4bn
Access to healthcare Access to healthcare Diseases of the developing world Health and well-being in our communities Updated our tiered pricing model for Reinvested 20% of the Provided 412 million doses of oral polio vaccines to increase support for countries profits we made in Least vaccine as part of our continued support for committed to long-term immunisation Developed Countries global efforts to eliminate the disease – we programmes that reflects their ability to pay. – £5.1 million – to train have contributed over 15.8 billion doses community health workers since 1988. £221m and strengthen healthcare Donated £221 million to promote the health infrastructure in those and well-being of communities through countries. funding, product donations and employee volunteering. See page 23 412m Note to SB. Please keep coloured gradient on the buttons for both normal and rollover actions please.
Corporate Responsibility Report Summary 2013 8
Improving healthcare: As a global healthcare company, GSK works within the context of the global health burden, exemplified by the UN Millennium Development Goals. We a global challenge recognise the complex barriers to health and are responding in innovative ways.
GSK’s response
Treatments don’t exist Resistance to existing More effective treatments are treatments Diseases of the Developing World needed for diseases including Barriers Resistance to antimicrobials Malaria and antibiotic resistance Working with the Gates Foundation, tuberculosis and hepatitis C, is a problem for many diseases We are committed to tackling malaria World Health Organization, other but developing them can take affecting developing countries, through vaccine research, developing pharmaceutical companies and donors, years and cost hundreds of including malaria. new treatments, promoting the use of we are helping to control or eliminate 10 millions of pounds, with low preventive measures and increasing of the 17 Neglected Tropical Diseases returns. access to anti-malarials in least that affect 1.4 billion people. Global health burden developed countries.
Child mortality Malaria Affordability Six million children a year Each year there are around High prices can prevent Stigma and discrimination still die before their fifth 215 million cases of Discrimination and stigma can governments and people, birthday (despite a 47% malaria globally and more especially the 2.8 billion living on prevent patients suffering less than $2 a day, from buying drop in child mortality than 660,000 malaria from diseases such as HIV, the medicines they need. since 1990). deaths, 80% of which and even asthma, from occur in just 14 countries. accessing treatment.
Pricing ViiV Healthcare We cap the prices of our patented The specialist HIV company GSK jointly medicines and vaccines in least established in 2009 with Pfizer, developed countries, offer flexible and researches new treatments, improves tiered pricing in middle income countries Maternal health HIV/AIDS access to medicines and works with and take a responsible approach communities to combat stigma and to pricing in high income countries. Only 50% of pregnant Of the 35 million people discrimination surrounding HIV/AIDS. women in developing living with HIV in 2012, countries receive the only 9.7 million people Poverty Healthcare infrastructure recommended healthcare received anti-retroviral Poverty has a huge effect on Many developing countries lack during pregnancy. therapy in low and middle people’s health and adequate healthcare facilities income countries. well-being. Factors such as and staff. Africa suffers most, lack of resources, with 24% of the global burden malnourishment, unsafe water of disease but just 3% of and poor sanitation all health workers. contribute to poor health.
Tuberculosis Non communicable Despite a 45% drop in diseases (NCDs) TB mortality from 1990, NCDs account for 20% reinvestment TB still killed 1.3 million two-thirds of global Save the Children partnership Since 2009, we have reinvested 20% of people in 2012, deaths, with developing Through our ground-breaking partnership the profits we generate in least a quarter of whom were countries carrying we are bringing much needed medicines developed countries into programmes HIV-positive. over half of the world’s and vaccines to some of the world’s that strengthen community healthcare NCD burden. poorest children, training thousands of and improve access to healthcare in healthcare workers, and seeking to these countries. alleviate child malnutrition. Note to SB. Please keep coloured gradient on the buttons for both normal and rollover actions please.
GSK Corporate Responsibility Report 2013 9
Ground-breaking partnership with Save the Children to help save one million lives
comprehensive interventions. by the UN Commission on and the Africa Malaria Commitment A joint R&D board will Life Saving Commodities.1 Partnership. Together we Continue to invest in innovative cross-sector explore the development of We are also registering a awarded US$1 million in partnerships to reduce child mortality. new or repurposed products child-friendly, powder-based 2013 for healthcare to tackle the causes of antibiotic into the DRC to innovations originating in the Our ground-breaking £15 million in grants and we newborn and infant death. developing world. The award partnership with international are encouraging employees help fight pneumonia, one of One of our first life-saving the biggest killers of children was split between five children’s charity, Save the to raise £1 million a year organisations, with the Children, will help save the through volunteering and projects is the reformulation under five, as well as of chlorhexidine, an antiseptic developing a low-cost largest portion going to lives of one million children. fund raising. Friends of Sick Children in By combining our expertise, found in our Corsodyl nutritional product to help Globally, over six million mouthwash, for umbilical combat child under-nutrition. Malawi, for their development resources and capabilities, children die every year due of a low-cost device to help we will bring much-needed cord cleansing to prevent This new partnership builds to a lack of basic healthcare, infection in newborns. If newborn infants breathe. medicines and vaccines to vaccines or nutritious food. on our collaboration with some of the world’s poorest applied for the first few days Save the Children over the We are establishing of their life, this gel could play 1 Source: http://www. children, train thousands of signature programmes in the past eight years, which everywomaneverychild.org/ healthcare workers, and seek a vital role in preventing includes work on our 20% resources/un-commission-on-life- Democratic Republic of infection and saving babies’ saving-commodities to alleviate child malnutrition. Congo (DRC) and Kenya to reinvestment programme in GSK is investing at least lives. This is one of the 13 Least Developed Countries test the impact of a series of interventions recommended Note to SB. Please keep coloured gradient on the buttons for both normal and rollover actions please.
Corporate Responsibility Report Summary 2013 10 Our behaviour For GSK, how we do things is just as important as what we do. Our values-based culture is designed to ensure we put patients and customers first.
In focus
Andrew is a senior scientist who has worked at GSK for seven years and works in Biopharm Research and Development at our Stevenage site, in the UK. Like all our employees, Andrew uses our values and our Code of Conduct as a guide for decision- making and knows that we encourage employees to speak up when they have concerns. Note to SB. Please keep coloured gradient on the buttons for both normal and rollover actions please.
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Our behaviour Overview
In our efforts to meet global healthcare External perspective challenges while ensuring the sustainability 2013 at a glance Our values and principles of our business, we navigate a wide range Systematically assessed GSK’s human rights of complex ethical issues associated with impacts, and developed plans relating to our “GSK was the first pharmaceutical supply chain and embedding global every stage of the development and delivery Our values and principles company to join the AllTrials standards at the country level. of our products – from research through All employees must uphold our Code of campaign in February 2013 saying to manufacturing and supply, to sales Conduct. In addition, over 65,000 designated the company owes it to the and marketing. managers completed our annual Ethical Leadership Certification to certify their thousands of people who have taken Our four core values – transparency, awareness, understanding and compliance Research practices part in clinical trials to make the respect for people, integrity, and patient- with GSK’s values and policies. To facilitate further research and progress focus – guide us in everything we do. medical science and patient care we data they have generated available And our people, our partners and our launched an online request system where for scrutiny. Many organisations suppliers are expected to adhere to the external researchers can access the detailed representing patients, doctors and anonymised patient-level data from our clinical strict codes of ethical conduct that regulators have applauded GSK’s support these values. 65,000 trials. We also became the first company to publish clinical study reports – formal reports decision, and we are looking to GSK to Over the last six years we have evolved our on the design, methods and results of our trials. develop the strong leadership on business model to better meet society’s Internal perspective expectations. And we are leading the clinical trial reporting that is industry in many areas – from increasing urgently needed across the industry”. the transparency of clinical research “Our commitment to transparency Working with healthcare professionals to transforming the way we incentivise enables the broader scientific Began a process to end direct payments to Síle Lane, The AllTrials campaign our sales teams and engage with community to examine data more healthcare professionals for speaking healthcare professions. engagements or attendance at medical closely to conduct further research conferences by 2016. Manufacturing and supply chain Recent allegations of fraudulent behaviour that can help advance medical Began rolling out an anti-counterfeiting in China have underlined the importance science or improve patient care. programme that will provide unique of our efforts. We are prepared to take serial numbers on 200 packaging lines decisive action and change the way we We also have a responsibility to across 25 manufacturing sites over the Sales and marketing operate if we are failing to meet the ensure that the vital contribution next four years. expectations of our stakeholders. Extended our ‘Patient First’ programme in our made by people who participate US business to base sales team incentives on in our trials is used to help further scientific knowledge and behaviours that scientific understanding”. support ethical, patient-focused business practices, instead of sales volumes. 200 James Shannon, Chief Medical Officer, GSK Note to SB. Please keep coloured gradient on the buttons for both normal and rollover actions please.
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Putting patients first in sales and marketing
We constantly challenge of patients come first. Our work with HCPs in a number doctor, nurse or other ourselves on how we can new compensation scheme of ways, including on research prescriber, there is no better meet the expectations will reward sales and that they conduct on our perception of a conflict of of society. In 2013, we marketing professionals for behalf and by soliciting their interest. We remain reinforced our commitment how well they use their expertise on GSK products or committed to continue our to putting patients first by technical knowledge to therapy areas. support to HCPs, and these announcing fundamental improve patient care and changes will help us do changes to our sales and GSK’s overall business In 2014, we began a two- so with transparency. marketing practices, and the performance. It is built on year process to end the way we interact with our experience in the USA, practice of paying HCPs to healthcare professionals. which has shown that such speak on our behalf, about an approach pays off our products or disease Instead of individual sales through improved customer areas, to audiences who targets, we will now satisfaction. prescribe or can influence incentivise our sales and prescribing. This move is marketing teams who detail We are also changing our designed to provide patients our products to prescribers relationship with healthcare with greater confidence that to ensure that the interests professionals (HCPs). We whenever they talk to a Note to SB. Please keep coloured gradient on the buttons for both normal and rollover actions please.
GSK Corporate Responsibility Report 2013 13 Our people Our people are essential to our success. We focus on building their individual capabilities, and aim to support and empower them to be the best they can be.
In focus
Alicia is an electrical engineering graduate on one of GSK’s specialist graduate schemes. Future talent is essential to business success and we run several schemes to support talented employees, like Alicia, in their early careers. Note to SB. Please keep coloured gradient on the buttons for both normal and rollover actions please.
Corporate Responsibility Report Summary 2013 14
Our people Overview
By creating strong leaders, offering Talent and leadership development Health, safety, and well-being individual development opportunities and 2013 at a glance Reached over 6,500 leaders in 30 countries Reduced injury and illness rates by 12% rewarding our people based on how they through our coaching programmes to from 2012. deliver as well as what they achieve, we are strengthen leadership capabilities. motivating our employees to excel and put Internal perspective our values at the heart of every decision “We have designed the new they make. We want them to feel proud of the work they do, the company they work Performance System to connect for and the difference they make. individual performance with reward 12% and align our collective efforts to For GSK, living our mission starts from within, 6,500 by improving the health and well-being of our deliver our strategy. At the heart Health, safety, and well-being employees. We are helping people build their of the system are individual and Talent and leadership development Equipped 48,300 employees with the tools energy levels, resilience and productivity, leadership expectations which Increased the number of employees each to cope with workload stress through energy and we are introducing unrivalled preventive year completing voluntary assignments with and resilience training since 2008. healthcare benefits for employees and their guide what we do and how we do it, Non-Government Organisations or non-profit families worldwide. aligned to our values.” organisations through PULSE to 99 – up from 94 in 2012. As an inclusive employer, we want to ensure Claire Thomas all of our people feel valued, thrive as SVP Human Resources, GSK individuals and are inspired to work together Internal perspective 48,300 to help us achieve our mission, whatever Inclusion and diversity their background. “When I look at myself now and Increased the proportion of women in Performance, reward and recognition management to 41%, up from 40% in 2012. compare it to before I attended Began the roll out of preventive healthcare Energy for Performance, I realise benefits through our Partnership for Prevention programme, which will be available I am a totally different person. I am to employees and their families worldwide a better leader, husband and father. by 2018. The way I look at it is – you have to 41% take care of your own health first and be a role model for others before Inclusion and diversity Performance, reward and recognition they will look up to you as a leader, The graduation of our first Project Search Launched the GSK Expectations as part of be willing to listen and want to cohort and subsequent recruitment of the our new Performance System to better link next group of students. employee reward with our values. follow what you have to say.”
Richard Lewis Immunology & Rare Diseases, GSK Note to SB. Please keep coloured gradient on the buttons for both normal and rollover actions please.
Corporate Responsibility Report Summary 2013 15
Setting the standard in employee healthcare
GSK’s Partnership for screenings – at low or no engaged and resilient Prevention (P4P) programme cost. No other multinational workforce, and giving our is setting the standard in company is doing this on the employees the opportunity employee healthcare. same scale. to improve and protect their health. In 2012 we piloted the No matter what job they do, programme in Ecuador, or where they work, we want These services are of even Ghana, Nigeria and all our employees to have greater need for those Romania. By 2018, P4P will access to the healthcare working in countries where offer all benefits-eligible they need to be fit and preventive healthcare may employees and their families healthy. By providing access be unavailable or access access to up to 40 preventive to preventive healthcare we is limited. health services – from are reinforcing our efforts vaccinations to cancer to maintain a motivated, Note to SB. Please keep coloured gradient on the buttons for both normal and rollover actions please.
GSK Corporate Responsibility Report 2013 16 Our planet We are working hard to reduce our environmental footprint, even as we grow our business to extend the benefits of GSK products to more patients and customers around the world.
In focus
Adina is a pharmacy manager in London at one of the pharmacies where GSK is running our Complete the Cycle inhaler recycling scheme. Complete the Cycle encourages patients to return their old inhalers to a participating pharmacy so they can be recycled, helping reduce waste and carbon emissions. Note to SB. Please keep coloured gradient on the buttons for both normal and rollover actions please.
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Our planet Overview
We are committed to managing and Carbon reducing the environmental impacts of our operations and our products across their 2013 at a glance Our Scope 3 emissions (excluding raw materials) life-cycle. Our stakeholders expect us to, increased by 1.5% in 2013 across the value chain due to strong sales of HFA propellant-based and the long-term success of our business Carbon inhalers, and have increased by 11% since 2010. depends on it. To ensure we can continue to deliver high quality products to patients Our Scope 1 and 2 carbon emissions from our operations grew slightly in 2013, and consumers in the future, we must although they remain 7% lower than our Internal perspective protect the natural resources we need to 2010 baseline. Water make them today. Used 2% less water in our “We are focused on reducing These resources are already becoming operations during 2013. % emissions, energy and water use scarcer and more expensive, and the effects 2 throughout our supply chain, which of climate change and water scarcity could Mapped water use across our value chain threaten some of the improvements in global – production of raw materials accounts for both benefits the environment and health our medicines, vaccines and External perspective an estimated 84% of our total water footprint also reduces waste and cost, so that consumer products are helping to deliver. and our own operations represent just 1%. we can reinvest savings in “I applaud GSK’s approach to innovation and improving access We have set ambitious goals to reduce minimising their environmental carbon, water and waste across our value to our medicines.” chain – from the sourcing of raw materials footprint. They are the first Water and the impacts of our own labs and company worldwide to announce Roger Connor Became the first company to be awarded President, Global Manufacturing and Supply, factories, to the use and disposal of our that all new respiratory drugs will global certification to the Carbon Trust’s GSK products by patients and consumers. only be launched in dry powder Water Standard in recognition of By using resources more efficiently, and our year-on-year reductions collaborating with others to tackle these formulations, which have less than in operational water use globally. challenges, we can reduce costs and 10% of the global warming enhance competitiveness. REDUCING WATER potential than HFA inhalers. YEAR ON YEAR Engagement Reviewed carbon, However, GSK must maintain Waste water and waste data momentum if they are to reach Generated 11% more waste than in 2012 due from over 216 suppliers their ambitious carbon targets.” to business growth, but achieved 6% to better understand reduction compared to 2010. environmental impacts Ashley Woodcock OBE in our supply chain. Consultant Respiratory Physician, University Hospital of South Manchester Shared in Nobel Peace Prize with IPCC Waste and Al Gore Achieved zero waste to landfill at 37 sites. Note to SB. Please keep coloured gradient on the buttons for both normal and rollover actions please.
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Taking a scientific approach to sustainability
The sourcing of raw materials Jurong, Singapore, teams at are now bio-treating waste in the world). This innovative and the complex, energy- the eight facilities where we and recovering the energy process will significantly intensive chemical processes produce active ingredients produced, achieved zero cut our carbon emissions involved in transforming them are implementing holistic waste to landfill for the third by reducing cooling into our products accounts for improvement plans which year running in 2013, and has requirements, as well as around half of our value chain are bringing significant cut water use by 57% and producing less organic waste. carbon footprint. environmental benefits and carbon emissions by 41% Many of the improvements cost reductions. since 2008. Over the last five years, we are making take time to we have been using Infrastructure investments We are also making changes implement. But across all innovative technology to included installing a to the chemical processes eight sites, we have already reduce environmental biogas plant at Irvine, themselves. For example, we cut energy use by 4%, CO2 impacts associated with UK, a combined heat and are investing in a new process emissions by 12%, water use manufacturing active power facility in Worthing, at our facility in Quality Road, by 10% and waste to landfill pharmaceutical ingredients UK, and a photo oxidation Singapore, which uses by 82% since 2010. – the substances in our system for waste treatment enzymes in the manufacturing drugs that treat or prevent in Singapore. Our site in of amoxicillin (one of the most illness. Following trials in Cork, Ireland, where we widely prescribed antibiotics Note to SB. Please keep coloured gradient on the buttons for both normal and rollover actions please.
Corporate Responsibility Report Summary 2013 19
Commitments In 2012, we developed forward-looking commitments across the four areas of our responsible business approach. They aim to address unmet global health needs Progress overview and are aligned with our strategic priorities and our values. In this year’s full Corporate Responsibility Report we have reported on our progress against these commitments and here we provide a summary.
Commitments Progress tracker
Innovation for unmet Adapt the open innovation R&D model, currently used for Diseases of the Developing World, to On track Worked to promote R&D of new antibiotics and accelerate development of treatments medical needs apply to other areas of great unmet medical need and scientific challenge, including infectious for Alzheimer’s disease through the Innovative Medicines Initiative, and continued to disease and Alzheimer’s disease, by 2015. research multi-drug-resistant tuberculosis.
Developing vaccines Invest in the development of vaccines that don’t require continuous refrigeration, making On track Partnered with the Bill & Melinda Gates Foundation to accelerate advances in vaccine that don’t need to be distribution easier and less expensive. research, including making them less vulnerable kept cold to heat.
Health for all Building products to Continue to build a core range of products and formats to better meet the needs of people across On track Our ‘catch-up’ programme in developing countries received approvals for a further 26 better meet needs the globe, including those less able to access and afford our products. products in 2013; and we reached 16,000 villages in India with low cost nutritional formulation of Horlicks.
Better access Further embed our flexible pricing strategy and innovative business models for our prescription Progressing well Updated our approach to tiered pricing for vaccines. to medicines medicines and vaccines, to increase usage among those less able to access and afford our and vaccines products.
Reducing child mortality Continue to invest in innovative cross-sector partnerships to reduce child mortality. On track Formed a ground-breaking partnership with Save the Children to help save one million children’s lives.
Strengthening healthcare Continue to work with partners to support the development and strengthening of healthcare Progressing well Launched innovative partnerships with Barclays and Vodafone, and invested £5.1 infrastructure infrastructure. We anticipate this could improve access to healthcare for 20 million under-served million in strengthening healthcare infrastructures through our 20% reinvestment people by 2020 (vs 2012). programme in Least Developed Countries.
Access to antiretroviral Through ViiV Healthcare, continue to increase access to our medicines and care for adults and On track Committed to grant the UN-supported Medicines Patent Pool, a voluntary licence to treatment for HIV children living with HIV around the world. We will help World Health Organization (WHO) and develop paediatric formulations of the antiretroviral medicine abacavir, to treat HIV in UNAIDS achieve their goal of reaching 15 million people globally with antiretroviral treatment by the 118 countries where 98% of HIV positive children live globally. 2015.
Fighting malaria Build on our 30 year commitment to contribute to the fight against malaria through continued R&D Progressing well Announced large scale phase III trial data for our malaria vaccine RTS,S and are investment and partnerships on the ground. developing a medicine, Tafenoquine, in partnership with MMV for the treatment and relapse prevention of vivax malaria.
Eliminating and Help to eliminate and control ten neglected tropical diseases that affect 1.4 billion people, by 2020 On track Donated 763 million albendazole tablets to eliminate Lymphatic Filariasis and controlling neglected – including the elimination of lymphatic filariasis, through our continued investment in R&D, ongoing control soil-transmitted helminths, and screened our compound library for promising tropical diseases product donations and our contribution to the London Declaration on Neglected Tropical Diseases. treatments for parasites that cause sleeping sickness, Chagas Disease and Visceral Leishmaniasis.
Eradicating polio Continue to support the WHO objective of eradicating polio by 2018 by providing vaccines to Progressing well Provided a further 412 million doses of Oral Polio Vaccine to the Global Polio UNICEF until this is achieved. Eradication Initiative. Note to SB. Please keep coloured gradient on the buttons for both normal and rollover actions please.
Corporate Responsibility Report Summary 2013 20
Commitments Progress overview continued
Commitments Progress tracker
Promoting values in sales Continue to drive a values-based approach to sales and marketing practices across the world, with On track Announced changes to our global sales and marketing practices to further ensure and marketing practices the interests of consumers and patients at its core. patient interests come first, and introduced a new performance management system focused on values.
Rigorous patient and Continue to ensure the interests and safety of patients and consumers are of paramount Progressing well Strengthened resources to enhance our pharmocovigilance operating model, consumer safety importance in the way we design and undertake our clinical trials, our product quality assurance expanded dedicated product quality teams and maintained our robust policies and and our monitoring and reporting of adverse events in ongoing product usage. governance framework on patient safety.
Minimising animal testing Rigorously challenge the need for animal studies and work to minimise the impact on animal On track Reduced number of animals used in our research by 10% in 2013. Our behaviour welfare, by investing in the development of alternative studies and sharing animal-based data.
Promoting Human Rights Address the UN Guiding Principles on Business and Human Rights across our own operations and On track Conducted a human rights impact assessment and prioritised seven areas for further our supplier relationships. analysis, and updated our human rights statement accordingly.
Transparency in clinical Be as transparent as possible with our clinical trial data, including publishing clinical study reports Progressing well Launched online system enabling researchers to request access to the detailed trial data (without patient-level data) for all outcome trials of medicines conducted by GSK and, within an anonymised patient-level data from our clinical trials and became first pharmaceutical appropriate process, making available to researchers access to anonymised patient level data to company to publish clinical study reports. further scientific enquiry.
Ensuring ethical Demonstrate that all GSK interactions with patient advocacy groups and political stakeholders are On track Embedded new criteria to ensure public policy groups we work with are aligned with stakeholder interactions conducted appropriately, ethically and transparently. our values and agreed relevant Standard Operating Procedures.
Promoting inclusion Continue to promote inclusion and diversity globally at GSK. On track Agreed to establish Global Disability Council and introduced gender targeted and diversity coaching and sponsorship.
Creating inspiring and Continue to create a working environment that inspires people to grow and perform in a healthy On track Interim employee survey results showed improvements in team leader effectiveness; healthy workplaces and resilient way. continued to roll out preventive healthcare for employees; reduced injury and illness rates by 12% from 2012. Our people Community volunteering Extend volunteering opportunities to bring about positive change to communities and global health On track Increased the number of employees taking part in PULSE volunteer partnership to create change while providing individual development. programme to 99 (from 58 in 2010).
Aiming to be Reduce our overall carbon footprint by 25% by 2020 (vs. 2010) and have a carbon neutral value Work to do Scope 1 and 2 carbon emissions from our operations up 2% in 2013, but down 7% carbon neutral chain by 2050. since 2010; Scope 3 emissions (excluding raw materials) up 1.5% in 2013 and up 11% since 2010, due to strong sales of HFA propellant-based inhalers.
Reducing our By 2020, reduce our water impact across the value chain by 20% (vs. 2010). On track Used 16% less water in our operations (vs. 2010); mapped water use across our water impact value chain; became first company to be awarded global certification to the Carbon
Our planet Trust’s Water Standard.
Reducing our By 2020, reduce our operational waste by 50% (vs. 2010). On track Cut total waste by 6% and sent 39% less to landfill (vs.2010); achieved zero waste to waste landfill at 37 sites.
Building sustainability Build sustainable supply lines for our Nutrition portfolio and work with local farmers to improve their On track Began working with a dairy supplier in India to develop a secure supply of locally in our supply chain agricultural practices, improve their yields, their competitiveness and their livelihoods. produced whey protein (from milk) to make Horlicks, and now source 60% of whey protein from the local supplier in India for Horlicks.