The Biopharmaceutical Industry: Improving Diversity & Inclusion in the Workforce

Prepared for: Pharmaceutical Research and Manufacturers of America (PhRMA)

Prepared by: TEConomy Partners, LLC

December 2020 TEConomy Partners, LLC is a global leader in research, analysis, and strategy for innovation-driven economic development. Today we’re helping nations, states, regions, universities, and industries blueprint their future and translate knowledge into prosperity.

The Pharmaceutical Research and Manufacturers of America (PhRMA) represents the country’s leading innovative pharmaceutical research and biotechnology companies, which are devoted to developing medicines that allow patients to live longer, healthier, and more productive lives. PhRMA member companies are leading the way in the search for new treatments and cures.

TEConomy Partners, LLC (TEConomy) endeavors at all times to produce work of the highest quality, consistent with our contract commitments. However, because of the research and/or experimental nature of this work, the client undertakes the sole responsibility for the consequence of any use or misuse of, or inability to use, any information or result obtained from TEConomy, and TEConomy, its partners, or employees have no legal liability for the accuracy, adequacy, or efficacy thereof. The Biopharmaceutical Industry: Improving Diversity & Inclusion in the Workforce 3

Contents

Foreword...... 1

Introduction...... 3

I. Setting the Context: Accelerating Demographic Changes and Persistent Workforce Disparities...... 5

Increasing Racial and Ethnic Diversity in the U.S. Population...... 5

Underrepresentation Persists in Corporate Leadership and High-Demand STEM Roles...... 6

II. The Value of Diversity and Inclusion in the Workplace...... 8

Businesses Benefit from Increased Diversity and Inclusion...... 8

National Competitiveness Relies on Broadening Opportunity...... 9

Accelerating Industry Efforts to Promote Diversity and Inclusion...... 9

III. The Biopharmaceutical Industry’s Role in Advancing Diversity and Inclusion...... 11

Empowering and Utilizing Employee Resource Groups (ERGs)...... 13

Education and Training to Support an Inclusive Workplace...... 17

Enabling Infrastructure to Advance D&I Through Leadership Positions, Councils, and Teams...... 22

Leveraging External Partnerships to Build a Diverse Talent Pipeline and Support Broader Goals...... 25

Setting D&I Goals and Tracking Efforts and Initiatives to Assess Impact and Success...... 35

IV. Conclusion...... 39

Appendix...... 41

Expanding Impact Through External Partnerships...... 41

The Biopharmaceutical Industry: Improving Diversity & Inclusion in the Workforce 1

Foreword

Earlier this year, we decided to capture how our member companies advance diversity and inclusion (D&I) at work, in their communities and in the patient populations they serve. The events of 2020 have brought into stark reality how these issues have far-reaching effects on the health and well-being of Americans. In the last several months, COVID-19 has dispropor- tionately affected underserved communities due to longstanding inequities, particularly in our health care system. Our families and communities deserve better. That is why the biopharma- ceutical industry is taking action to push forward on equity.

As a first step, earlier this year I signed the CEO Action Pledge, committing our organization to be a trusting place to have complex, and sometimes difficult, conversations about each other’s experiences and perspectives. And while this report demonstrates that PhRMA and its members strongly believe that documenting and sharing best practices is a key step toward achieving these worthy goals, there is still much work to be done to increase D&I more broadly in corporate America.

In July, our member companies united with core Racial Justice Principles, acknowledging that systemic racism is as real as any disease, and that our industry is not immune. With this effort, our industry committed to:

• Open, honest and real conversations about racial equity and what it means to have a culture of inclusion • Expanding opportunities to work and succeed in our industry • Advancing policy solutions and research to better address health disparities • Diversifying our business practices to better invest in Black and Brown America • Earning trust and addressing systemic issues that deter Black and Brown communities from participating in clinical trials, so that people who want to participate, can

In November we also developed first-ever, industry-wide principles on increasing diversity in clinical trials. Diversity is critical to addressing COVID-19 and to innovation more broadly. With recent COVID-19 trials, we’ve made progress in ensuring those participating represent the patient population. We need to build off this momentum and continue these efforts in other disease areas. For instance, Asians, Latinos and Black Americans make up 35% of the type 2 diabetes patient population in the United States, but less than 20% of the available medicines for patients with this disease were studied in all three of these populations. We need to work harder to close these gaps, and the new principles are a step toward that goal. 2 These actions are part of a greater, years-long effort. It’s clear the status quo needs to change. And we need to be part of that change. At PhRMA, we’ll continue to address diversity and inclusion in our own organization and industry, and I hope this report will provide tangible examples of how you can cultivate talent and promote the full inclusion of excellence in your organization as well.

To follow along with this work, I encourage you to visit phrma.org/equity.

Steve Ubl, President and Chief Executive Officer, PhRMA The Biopharmaceutical Industry: Improving Diversity & Inclusion in the Workforce 3

Introduction

An expanding body of research and mounting evidence consistently finds that more diverse and inclusive workplaces see deeper employee commitment, higher levels of innovation, improved hiring quality, greater rates of employee retention, and increased profits.

Despite these benefits, there is a well-docu- ground, and is provided a platform for shared mented imbalance between the demograph- experiences, is recognized as leading to ics of the United States’ population and more empowered employees who will then that of its corporate leadership and science, have the opportunity to express their talents technology, engineering, and mathematics and reach their full potential. (STEM) workforce. In a nation that relies on technical talent to drive innovation and to Companies recognize that diversity is compete globally, this lack of inclusion and essential to driving the innovation needed engagement represents not only an eco- to fuel the U.S. economy. For example, nomic concern, but also a societal challenge more than 1,000 corporate executives reflecting decades of structural inequalities across the country have signed the CEO related to race, gender, sexual orientation, Action for Diversity and Inclusion Pledge, a age, ability and socioeconomic status. commitment to advance diversity and in- clusion within the workplace by cultivating A breadth of corporate initiatives and activ- environments where diverse experiences ities are underway to shine a light on these and perspectives are welcomed and where disparities and to enhance workplace diversi- employees feel comfortable and encour- ty and inclusion (D&I, see box). Recognizing aged to discuss D&I.1 A number of mem- the importance and value of D&I, companies bers of the Pharmaceutical Research and across industries are increasingly focused on Manufacturers of America (PhRMA) have ensuring that the United States’ workforce signed this pledge, including Bayer U.S., and corporate leadership better represents Biogen, Bristol Myers Squibb, Eli Lilly and its diverse population. However, data reveal Company, Genentech, Johnson & Johnson, that more is needed in terms of advancing Merck & Co., Pfizer, and Sanofi. D&I through intentional efforts to attract, develop, mentor, sponsor, and retain leaders. As PhRMA CEO Stephen Ubl commented Building an inclusive work environment upon signing this pledge, “PhRMA has a where everyone feels valued, finds common unique ability to highlight our members’

1 “CEO Action for Diversity and Inclusion.” See: https://www.ceoaction.com/pledge/ceo-pledge/. 4

Core Concepts Related to Diversity & Inclusion

While there are many definitions and concepts around diversity and inclusion, for context, provided here are general meanings. Any individual company or organization may have varying definitions, but they are most often in line with those provided below.

• Diversity is often referred to as the quality or state of race/ethnicity, gen- der and identity, age, physical ability, and sexual orientation represented within a defined group. diversity and inclusion efforts and to help

• Inclusion generally refers to the our industry learn from each other on how practices that involve and empower to build stronger, more diverse workforces. individuals to participate, be recog- This pledge shows our commitment to nized, and realize their potential. diversity and inclusion—both internally and in the biopharmaceutical industry—which • Diversity in the workplace often refers to cultivating talent and are essential to unlocking the scientific promoting the full inclusion of challenges that lead to new medicines and excellence across the social spec- to helping the patients we serve.” trum. This includes people from backgrounds that are traditionally The focus of this report, sponsored by underrepresented in areas such as PhRMA, is to provide insight into the efforts the managerial, scientific and STEM workforce, as well as those from of PhRMA member companies to advance backgrounds that are traditionally D&I in the workplace, in the communities well represented. Diversity refers to in which they operate, and in the patient difference. Workforce diversity refers populations they serve. PhRMA member to cultivating talent and promoting companies were surveyed as part of this the full inclusion of excellence across effort, in addition to extensive web research, the social spectrum. to capture and highlight the range of activi- • Equality typically refers to treating ties and best practices these companies are everyone the same, and providing leveraging to advance this mission. everyone with access to the same opportunities, status, and rights. In contrast with equity, equality is a ques- While it is clear there is work to be done tion of sameness rather than fairness. on the unfinished agenda of increasing D&I more broadly in corporate America, • Equity commonly refers to the notion documenting and sharing best practices is of fairness, justice, and proportional an essential step toward achieving these representation for the same opportu- nities. The term focuses on achieving worthy goals. This report intends to contrib- fair outcomes for a given group, by ute in this manner. designing processes that recognize the root causes of distinct challenges and addresses them in solutions. The Biopharmaceutical Industry: Improving Diversity & Inclusion in the Workforce 5

I. Setting the Context: Accelerating Demographic Changes and Persistent Workforce Disparities

Increasing Racial and Ethnic non-Hispanic whites went from comprising Diversity in the U.S. Population 84% of the nation’s population to 60% (Figure 1). The increasing diversity of Historical population trends and projected younger generations will accelerate this future dynamics reveal dramatic shifts trend, and by 2060 the share of non-His- in racial and ethnic diversity across the panic whites is expected to reach 44% of United States. From 1970 through 2018, the national total. Meanwhile, the Hispanic

FIGURE 1: RACIAL AND ETHNIC COMPOSITION OF THE U.S. POPULATION, HISTORICAL TRENDS, AND PROJECTIONS (1970-2060)

5% 6% 5%% 6% 6% 7% 7% 8% 9% 13%% 16%% 18% 19% 21% 23% 12%% 26% 28% 12%% 12% 13% 13% 13% Other 13% 14% Asian* Hispanic 84% 80% 76% Black* 69% 64% White* 60% 60% 56% 52% 48% 44%

1970 1980 1990 2000 2010 2018 2020 2030 2040 2050 2060

Note: To improve comparability across different versions of the Census, only non-Hispanic Whites are displayed individually for 1970-1990. Data shown for 2020 forward are Census projections. *Represent those reporting one racial identification that do not report Hispanic origin. Source: TEConomy Partners’ analysis of U.S. Census Bureau, Population Division data. 6 and Latinx population is expected to see FIGURE 2: FEMALE, BLACK, AND HISPANIC the most population growth in the U.S. over INDIVIDUALS AGES 16 AND OVER AS SHARE the next four decades. OF U.S. POPULATION, WORKFORCE, AND SELECT OCCUPATIONAL GROUPS (2019)

Underrepresentation Persists 51% in Corporate Leadership and 47% 2 Women High-Demand STEM Roles 40%

While progress has been made in terms 26% of increasing diversity and inclusion in the workplace, the reality is that women and people of color, especially Black and Latinx 12% % of Population

individuals, continue to be underrepresent- 13% % of Labor Force ed in corporate leadership positions and Black 8% % of Managerial Occupations STEM careers across industries. Women % of S&E Occupations comprise 51% of the working-age popu- 8% lation and 52% of the college-educated workforce but account for just 40% of managerial positions and 26% of science 16% and engineering or STEM jobs (Figure 2). 18% Although these shares have seen some Hispanic 11% increases in recent years, they remain well below the female percentage of the popula- 9% tion and overall workforce. Source: TEConomy Partners’ analysis of U.S. Census Bureau population data; U.S. Bureau of Labor Statistics, The Black and Hispanic/Latinx populations Current Population Survey data. are similarly underrepresented in managerial and high-demand STEM positions. In the Significant imbalances in the composition U.S., just 8% of managers and STEM workers of corporate leadership and technical are Black, well below their 13% share of positions extend to disparities in earnings. the overall workforce. For those of Hispanic Although women outnumber men at all ethnicity, rates of representation in corporate levels of post-secondary education, they leadership and technical STEM positions are still earn less than their male peers–even also significantly below their shares of the when accounting for college majors and general population and workforce. industry sectors.3 While there has been a modest improvement over time, many well-paying fields such as engineering and management remain predominantly male, whereas women have a higher representa- tion in many lower-paying occupations.

2 Throughout this report, the terms people/communities of color are used to refer to individuals identifying as Black, Hispanic/Latinx, Asian, Native American/Alaskan Native, Native Hawaiian/Pacific Islander, and as multiple races. 3 Georgetown University Center on Education and the Workforce, “Women Can’t Win: Despite Making Educational Gains and Pursuing High-Wage Majors, Women Still Earn Less than Men,” 2018. 7 A series of studies by Lean In and McKinsey reflected by increased representation in provide important insight into the flows of the “C-Suite” where women’s share has the corporate talent pipeline for women increased from 17% in 2015 to 21% in the and people of color.4 Through an extensive most recent year.5 Despite these gains, analysis of human resources and employee women and especially women of color data, these studies shed light on where the continue to be underrepresented across disparities for women and employees of many organizations’ highest levels. As more color in the workforce are widening. Figure data are collected on underrepresentation 3 reproduces these highly illustrative in the workplace, particularly in leadership findings by Lean In and McKinsey. positions, companies have been using these data to inform the implementation The study authors note that women have of focused, intentional efforts to advance made some substantial progress, as diversity and inclusion.

FIGURE 3: REPRESENTATION IN THE CORPORATE PIPELINE BY SEX AND RACE (2019)

Entry Level Manager Sr. Manager/ Director VP 35% SVP C-Suite 45% 51% 57% 64% 16% 68% 17% 14% 12% 10% 10% 30% 21% 18% 27% 26% 24% 4% 9% 5% 12% 7% 18%

White Men Men of Color White Women Women of Color

Source: Adapted from LeanIn.org and McKinsey and Company, 2019. Totals may not sum to 100% due to rounding.

4 LeanIn.org and McKinsey and Company, “Women in the Workplace, 2019.” 5 Ibid. 8 The Biopharmaceutical Industry: Improving Diversity & Inclusion in the Workforce

II. The Value of Diversity and Inclusion in the Workplace

“We drive innovation when we all contribute to an inclusive culture that attracts a diverse group of the best and brightest talent and in- spires everyone to freely contribute to their maximum potential and make a meaningful difference for patients every day.”- Quita Highsmith, Chief Diversity Officer, Genentech

Businesses Benefit diversity on their executive teams were from Increased Diversity 21% more likely to deliver above-aver- and Inclusion age profitability. Similarly, companies with the most ethnically diverse exec- Diverse corporate leadership is not only utive teams were 33% more likely to a moral imperative, but it also translates outperform their peers.6 into more competitive businesses. This conclusion draws from an expanding body • Diversity is an integral part of suc- of research and mounting evidence that cessful innovation-driven businesses: more diverse firms are also more financially A Boston Consulting Group study finds successful. Because workers bring unique companies with more diverse manage- perspectives and lived experiences to their ment teams reported considerably higher roles, they can add value by approaching revenues related to innovation than less problems and thinking about issues differ- diverse teams. This finding is significant ently. As the following examples show, the for tech companies, startups, and re- “business case” for advancing D&I in the search and development (R&D) intensive workplace is increasingly clear: industries, such as biopharmaceuticals, where innovation is the key to growth.7 • Diverse teams outperform their peers: A 2018 McKinsey report finds that • D&I is vital to talent attraction: When companies in the top quartile for gender considering whether to work for an

6 McKinsey & Company, “Delivering through Diversity,” January 2018. 7 Boston Consulting Group, “How Diverse Leadership Teams Boost Innovation,” January 23, 2018. 9 organization, a majority of millennials in STEM fields could be hindering U.S. inno- surveyed report that they place a “great vation, and in turn, limiting both widespread deal” or “fair amount” of importance on the economic growth and broader shared pros- gender, ethnicity, age, and general range perity.11 The research shows that if more of backgrounds of employers’ workforces.8 women, communities of color, and children from low-income families became inventors • Female-led teams can be more at the same rate as men from high-income profitable: The Peterson Institute for families, innovation in the U.S. could International Economics finds companies increase as much as four times. Meanwhile, with 30% of its leaders being female economists at Michigan State University earn 6% more in profits than those and Claremont Graduate University found without female leadership, indicating that if more women and Black students strong firm performance.9 received post-graduate STEM training and worked in related jobs, GDP per capita • Diverse companies deliver strong results: would be 0.6% to 4.4% higher.12 Of 365 public companies analyzed by McKinsey, those in the top quartile for racial and ethnic diversity are 36% more Accelerating Industry Efforts to likely to have financial returns above Promote Diversity and Inclusion national industry medians.10 The study also finds that outperformance rates are The number of corporate initiatives and increasing, and that the likelihood of strategies to promote diversity and in- outperformance is persistently higher for clusion has grown considerably in recent diversity in ethnicity compared to gender. years due to the increased recognition of the economic and societal benefits stem- ming from a more diverse workforce. Three National Competitiveness Relies areas of focus for these efforts relate to on Broadening Opportunity advancing D&I in corporate boards, leader- ship positions, and other business roles. In addition to the increasingly clear busi- ness case for workplace diversity, evidence Increasing the diversity of corporate suggests that without focused efforts to boards: Data on U.S. corporate board di- increase workforce diversity further, the versity for 2019 show that the percentage United States’ global competitiveness may of women joining boards reached a new continue to decline. Growing a more inclu- record high, with 45% of new board seats sive workforce, especially in areas such as filled by women in 2019 (compared to only corporate leadership and in STEM fields, is 12% in 2008).13 Similarly, ethnic diversity critical to the nation’s economic success. also reached record highs but has grown at a much slower pace, with approximately For example, a study by Harvard University 10% of directors currently belonging to an economists finds that persistent inequality underrepresented racial or ethnic group.

8 The Deloitte Global Millennial Survey 2019. 9 Marcus Noland, Tyler Moran, and Barbara Kotschwar, “Is Gender Diversity Profitable? Evidence from a Global Survey,” Peterson Institute for International Economics, February 2016. 10 McKinsey & Company, “Diversity wins: How inclusion matters,” May 2020. 11 Alex Bell, Raj Chetty, Xavier Jaravel, Neviana Petkova, and John Van Reenen, “Who Becomes an Inventor in America? The Impor- tance of Exposure to Innovation,” 2019. 12 Lisa Cook and Yanyan Yang, “Missing Women and Minorities: Implications for Innovation and Growth,” January 2018. 13 Harvard Law School Forum on Corporate Governance, “U.S. Board Diversity Trends in 2019.” 10 candidates but also for leading efforts to “Developing and bringing collect data on D&I across the company, innovative, life-saving medicines identifying and implementing D&I programs to patients requires diverse and initiatives, and supporting internal and thought and approaches. external collaborations. The study also finds Bringing together experts that nearly two-thirds (63%) of those CDOs have been appointed or promoted to their from diverse backgrounds and roles in the past three years. thought is crucial to our ability to deliver today and into the future.” Identifying and creating roles for addi- tional D&I professionals: Beyond the S&P - Richard A. Gonzalez, Chairman 500, the focus on D&I and the need for & CEO, Abbvie leadership professionals is showing up in rising job postings. Analysis of postings on In comparison, 15% of new directors are Indeed found that as of early 2018, D&I- racially or ethnically diverse.14 related job postings as a share of all jobs posted were up 18% from 2017 and 35% In an examination of the S&P 500 compa- higher than levels from 2 years prior.18 nies, just under one in four new S&P 500 directors (23%) are people of color (defined Although hiring dedicated executives as Black, Asian or Hispanic/Latino), and focused on D&I and diversifying corporate women of color represent 10% of the in- boards are essential mechanisms, there are coming class, up slightly from 9% last year.15 other key approaches to advancing D&I in While women and men of color constitute the workplace and society more broadly. more than half of the new directors, low The following section explores the vast boardroom turnover impedes meaningful array of efforts undertaken by the biophar- year-over-year change in the overall maceutical industry to support D&I. composition of S&P 500 boards. As a result, despite the record number of female di- rectors, women’s representation increased incrementally to 26% of all directors, up from 24% in 2018 and 16% in 2009.16

Directing executive-level positions to oversee D&I strategies: A recent study by Russell Reynolds Associates finds 47% of companies included on the S&P 500 index currently have a Chief Diversity Officer (CDO) or equivalent.17 A CDO is generally an executive-level position responsible not just for creating and implementing strategies for recruiting diverse and underrepresented

14 Ibid. 15 2019 U.S. Spencer Stuart Board Index. 16 Ibid. 17 Russell Reynolds Associates, “A Leader’s Guide: Finding and Keeping Your Next Chief Diversity Officer,” March 1, 2019. 18 Indeed Hiring Lab, “Diversity and Inclusion Jobs Grow Briskly,” March 2018. The Biopharmaceutical Industry: Improving Diversity & Inclusion in the Workforce 11

III. The Biopharmaceutical Industry’s Role in Advancing Diversity and Inclusion

Recognizing the benefits to their business and employees, the communities in which they operate, the patients they serve, and society as a whole, companies in the biopharmaceutical industry are committed to enhancing diversity and inclusion within and across their organizations and external stakeholders such as vendors and suppliers.

Through this array of support, the industry is increasing opportunities for underrepre- “For more than 70 years now, we sented and underserved populations and have been deeply committed working to address disparities related to to fostering an inclusive economics, health, race, gender, ability, environment that embraces and sexual orientation. different perspectives and The information presented in this section draws values the contributions of each from a survey of PhRMA member companies individual. Having a globally administered in late 2019 through early and locally diverse workforce 2020. Eighteen leading biopharmaceutical makes us a more innovative and companies responded to the survey. Additional agile company—and one better examples of company activities are derived attuned to the needs of our from publicly available reports, websites, press releases, and other sources. customers, health care providers and patients who ultimately use Based on this analysis, Figure 4 below de- our products.” scribes fundamental approaches deployed -Ken Frazier, Chairman and CEO, Merck by businesses to support D&I. Ultimately, a holistic approach is needed to truly strengthen diversity and inclusion across companies, industries, and communities. 12 FIGURE 4: OVERVIEW OF HOLISTIC APPROACH TO STRENGTHENING DIVERSITY AND INCLUSION

Empowering and Utilizing Education and Training to Employee Resource Groups Support an Inclusive Workplace Company-recognized groups of Providing training throughout the employees who share common Empowering Education and organization on topics such as concerns or characteristics, and Utilizing Training to Support overcoming unconscious bias and oering a platform for mentorship, Employee an Inclusive the benefits to cross-cultural networking, and problem-solving. Resource Workplace collaboration. Groups

-

Leveraging External Setting D&I Enabling Enabling Partnerships to Goals and Track- Setting D&I Goals and Infrastructure to Infrastructure to Build Diverse ing Eorts and Tracking Eorts and Advance D&I Through Advance D&I Through Talent Pipeline Initiatives to Initiatives to Assess Leadership Positions, Leadership Positions, and Support Assess Impact Impact and Success Councils, and Teams Councils, and Teams Broader Goals and Success Understanding prog- Developing a structure ress as it relates to to initiate, manage, advancing D&I in man- and institutionalize D&I agement positions, practices. Leveraging External Partnerships to Build a Diverse improving employee Talent Pipeline and Support Broader Goals engagement and reten- Collaborating with organizations throughout local tion, and achieving communities and across the country to drive systemic company goals. change related to D&I in areas such as health equity and STEM education.

Source: TEConomy Partners, LLC. 13 Empowering and Utilizing Employee Resource Groups (ERGs)

ERGs, sometimes known as “Affinity Groups” or “Business Resource Groups,” refer to an “Teva embraces diversity in all “employer-recognized group of employees aspects of our business—from our who share the concerns of a common race, workforce, to external partners, gender, national origin or sexual orienta- tion—characteristics protected in some to engagement in the community. instances by law and in many organizations There is no place in our mission as a matter of company policy.”19 ERGs are for discrimination of any kind. Our a key organizing framework for diversity values are rooted in these princi- and inclusion initiatives and a valuable ples and in our belief that our dif- mechanism for building collaboration ferences only make us stronger. across and within companies. Our commitment to Diversity & Companies may call these groups by Inclusion may not be new, but our different names, but they all aim to attract resolve to elevate both our words and retain diverse talent, grow and develop and our actions to the forefront employee leaders, and advance a culture has never been stronger.” of belonging. Notably, and specific to the biopharmaceutical industry’s mission, ERGs -Norv McAndrew, SVP and General may also support external initiatives to Counsel, Global Litigation, Black Heritage promote better patient care, engage in ERG Executive Sponsor, Teva health equity issues, and increase diversity in the talent pipeline. Collaborations among

FIGURE 5: SUPPORT FOR EMPLOYEE RESOURCE GROUPS (ERGS) IN THE BIOPHARMACEUTICAL INDUSTRY

94% Oer Employee Resource Groups (ERGs)

89% Provide Executive Support and Recognition for ERGs

83% Provide funding for ERG activities

Source: PhRMA/TEConomy Partners’ survey; percentages represent the share of total companies responding.

19 Diversity Best Practices, see: https://www.diversitybestpractices.com/employee-resource-groups. 14

EXAMPLES OF BIOPHARMACEUTICAL INDUSTRY ERG ACTIVITIES

Supporting and Serving Diverse Racial and Ethnic Communities Providing Resources for Caregivers and Those Receiving Treatments Creating an Inclusive Environment for Employees with Disabilities Networking for Employees of All Age Ranges Engaging the LGBTQ Community in the Workplace Additional Examples of ERGs to Support D&I Supporting Women in the Workplace

Alexion Alexion Amgen: Amgen: Charitable Foundation: Pharmaceuticals: The recently formed Alexion Charitable The company hosted a MOSAIC The Amgen Black Employees Ability Bettered Through Foundation seeks to cultivate a sense of Caregiver Perspective global panel Network collaborated with Leadership and Education (ABLE) belonging—particularly for people aected discussion with internal caregivers who Amgen’s Oncology team to create provides resources for employees by a rare disease—through initiatives that shared personal experiences, shining a an award-winning educational with disabilities and employees advance emotional well-being, educational light on the caregiver journey, and website about multiple myeloma with family members who have opportunities, and economic relief. The oering a safe space for open discussion Foundation provides funding to help the rare and support. The O¢ce of Chief Diversity focused on African Americans, disabilities while also raising disease community cope with isolation, O¢cer also shares periodic who are at greater risk of awareness around diverse attain needed education and job skills communications with the organization, developing the disease than the abilities and participating in support, and alleviate some key often highlighting employee and general population. volunteer events. financial burdens. caregiver resources.

Astellas AstraZeneca Pharma: Astellas Pharma: Astellas Pharma: Pharmaceuticals: The Military Employee Resource Together as One (TAO), an ERG Employee Resource Groups connect Together as One (TAO), an ERG Group (MERG) supports the for the LGBTQ community, has like-minded people across for the LGBTQ community, has a recruitment, retention, and a four-tier program to build AstraZeneca to share ideas and foster four-tier program to build recognition of employees with employees’ skills to actively an inclusive community. For example, employees’ skills to actively military experience. Along with support their LGBTQ the Working Parents groups oer support their LGBTQ colleagues, MERG, Astellas Pharma also colleagues, friends, and family employees support to pursue friends, and family members. sponsored the Warrior Games, an members. Those who reach the professional success through Those who reach the top-level athletics competition with hundreds top-level become “super allies.” connections and expanding become “super allies.” of service members and peer-to-peer veterans participating. mentoring.

Bristol Myers Biogen: Biogen: Ignite, an ERG for Eli Lilly and Mosaic, a multicultural resource Squib: early-career professionals and The Dierently Abled Workplace Company: network, aims to foster their advocates, provides Network (DAWN) fosters an Lilly Pride supports initiatives awareness, appreciation, and opportunities for those early in inclusive work environment where such as a global LGBTQ ally collaboration within the company their career to commit to social employees with disabilities are program, reverse mentoring, to eliminate barriers and develop responsibility, network with one valued and respected equally with voluntary sexual orientation, a deeper understanding of the another, and collaborate with others, thereby maximizing and gender identity cultural heritage and identity mid-to late-career individual and company self-identification dierences of employees. employees. performance. programs.

GlaxoSmithKline: Johnson & The Prime-Time Partners Network Johnson: EMD Serono: focuses on creating a supportive network J&J currently has more than 21,000 for employees in mid-career and beyond The company helps employees employees globally involved in but is also open to all employees ERGs. The Association of Middle who are caregivers find dedicated regardless of age. The Career Growth Eastern and North African Heritage resources while also encouraging Network educates about dierent career ERG (AMENA) helped welcome and an exchange with colleagues paths possible at pharmaceutical create a new life for refugee families going through similar situations. companies. The network also interacts by turning their house into a home with college students to provide general through a program called “Give career-related advice, such as interview Your Furniture a New skills, job searching assistance, Home.” and resume writing. Johnson & Johnson & Johnson & Johnson: Johnson: J&J’s African Ancestry Leadership Johnson: Open&Out, an ERG for the LGBTQ+ Johnson & Johnson: Council (AALC) ERG educates Black The Nursing Innovation Council of communities around the United States on community, includes 2,000 The GenNOW ERG provides Excellence (NICE), a diverse group the importance of participating in clinical members in 58 locations worldwide members with the inspiration and of nursing professionals, provides trials. The Hispanic Organization for and has launched a global campaign skills to build their future at Leadership and Achievement (HOLA) ERG members with a forum to to empower and train employees to Johnson & Johnson. This dynamic supports students through their work with exchange knowledge and clinical be LGBTQ+ allies. This year, community helps J&J grow the the Hispanic Scholarship Fund and recently and scientific insights while signed the Hispanic Promise pledge to Women’s Leadership & Inclusion next generation of leaders as they facilitating opportunities across ensure the company is hiring, promoting, (WLI), the largest ERG at J&J, chart their career trajectory. J&J for partnerships and and celebrating Hispanics celebrated its 25th and Latinx individuals development. in the workplace. anniversary. 15

EXAMPLES OF BIOPHARMACEUTICAL INDUSTRY ERG ACTIVITIES

Supporting and Serving Diverse Racial and Ethnic Communities Providing Resources for Caregivers and Those Receiving Treatments Creating an Inclusive Environment for Employees with Disabilities Networking for Employees of All Age Ranges Engaging the LGBTQ Community in the Workplace Additional Examples of ERGs to Support D&I Supporting Women in the Workplace

Novo Merck & Co.: Merck & Co.: Nordisk Inc.: Johnson & Johnson: The League of Employees of The Merck Interfaith Organization HoLA (Hispanics and Latinos at Novo The Alliance for Diverse Abilities (ADA) African Descent (LEAD), Merck’s (MIO) works to foster inclusion Nordisk) ERG provides strategic thought ERG provides leadership by actively leadership to the business and brings oldest Employee Business among employees from all walks of Hispanic and Latinx perspectives to creating an enabling culture for people Resource Group, is celebrating 50 faith, implementing workplace with diverse abilities, their caregivers, promote education and awareness of and their advocates to enable years in 2020. The group plays a initiatives and promoting patients within the community. This ERG employees of all abilities to reach their valuable role in its global talent partnerships with other groups supports development opportunities, full potential. acquisition, business insights, and through panels, discussions, and highlights leaders and role models within the business, provides networking community outreach eœorts. community service events. opportunities, and supports work in local communities. Novo Novo Novo Nordisk Inc.: AstellasNordisk Pharma: Inc.: The Novo Asian Pacific Community TogetherNovoEqual as (LGBTQ One (TAO),Employees an ERG and Nordisk Inc.: (NASPAC) ERG helps champion healthcare Women in Novo Nordisk (WiNN) is an Our Allies) works to expand tolerance, awareness and advocacy through the for the LGBTQ community, has ERG that builds community among the acceptance, and celebrate diversity inclusion of Asian and Pacific Islander a four-tier program to build company’s female employees, holds within Novo Nordisk and the perspectives to the business, and by employees’ skills to actively career development summits that help communities they serve. The ERG’s providing opportunities for networking, advance and develop leadership, missionsupport is to increase their LGBTQthe visibility of learning, and individual development for business, and other member skills. Novocolleagues, Nordisk as friends, a friendly and workplace family members. Additionally, the NASPAC ERG Programming for a recent “Pandemic for the LGBTQ community by providing has become an active resource for the members. Those who reach the Series” was targeted at assisting a support network for LGBTQ company and its communities, helping to top-level become “super allies.” employees to parent, be a part of the employees and allies to maximize drive change to defeat diabetes sandwich generation, and engagement, retention, and other chronic manage self-care. and leadership. diseases. Novo Novo Novo Novo Nordisk Inc.: Nordisk Inc.: Nordisk Inc.: Nordisk Inc.: The Millennials ERG aims to The African Americans in Novo The A1Connection (Living with The Veterans at Novo Nordisk leverage the energy and influence of Nordisk ERG seeks to ensure that Diabetes) ERG serves as a (VANN) ERG provides veterans early-career professionals to drive African American employees have resource and voice for people and allies with opportunities to development and growth opportunities Novo Nordisk’s triple bottom line living with diabetes to bring showcase their leadership skills, that help achieve business objectives and deliver workplace and broader education and awareness execute professional and foster leadership within the marketplace innovation by organization. This ERG supports of diabetes and to support the development and community connecting, engaging, and targeted activities, from educational business’s commitment to service events, and ensure that developing next-generation leaders programming to panels highlighting improving the lives of people Novo Nordisk remains an diverse employees' contributions and harnessing their with diabetes. employer of choice for to the organization. diversity of thought. Veterans.

Sanofi: Sanofi: PRIDE Connect fosters a Sanofi: CareGIVE provides supportive and inclusive culture Women Inspiring Sanofi information, ideas, and a by driving LGBTQ+ cultural Excellence (WISE) creates an comprehensive support system understanding, providing tailored environment of connections, for employees who are caregivers resources such as webinars on mentorship, and development, or who support someone who is a financial investing from an LGBTQ playing an essential role in caregiver. This ERG focuses on lens and HR adoption resources, supporting the company's Global the wide range of challenges and partnering with community Gender Balance Ambition of related to caring for those who organizations that raise 50/50 among top leaders by are aging or living with physical awareness on 2025. disabilities or mental HIV/AIDS. health issues.

Sanofi: Sanofi: MOSAIC creates a culture that Sanofi: The VETS Employee Resource empowers underrepresented employee CancerConnect helps employees Sanofi: Group provides a network, resources, groups (African American/Black, Hispanic, coping with cancer make DiabetesConnect links employees and support for Sanofi veterans and Native American, and Asian) and encourages military family members. A key focus in informed decisions and access diagnosed with diabetes, those diversity of thought and experience across alignment with the company's mental resources, including who care for someone with the workplace and marketplace. Recently, health eœorts has been providing a MOSAIC members created caucus/ašnity knowledgeable colleagues, diabetes, or want to learn more by comprehensive curriculum on Post spaces for Sanofi employees to come relationships with advocacy and answering questions, oœering Traumatic Stress together safely to process racial injustices, community groups, and helpful support, and engaging the Disorder—understanding it, celebrate cultural observances, and oœer recognizing it, and providing support information and support community. tailored career webinars to enhance to colleagues and family systems. members’ professional development. members in need. 16 and across different ERGs can play a crucial The industry is supporting a wide assort- role in driving D&I synergies and scaling up ment of ERGs (Figure 6). Notably, most efforts within an organization. companies are supporting five or more different groups across their organizations. Nearly all (94%) biopharmaceutical compa- nies responding to the survey offer employ- ERGs are involved in a range of activities to ee resource groups. While these groups strengthen company culture, advocate for vary in size and scope, typical activities internal initiatives or policies, and engage include conferences and networking events, in the broader community. Increasingly, mentorship opportunities, and efforts to many companies ask ERGs to help address solve specific challenges around business specific business challenges, whether oper- operations and/or D&I. Within those ERGs, ational, strategic, or concerning advancing industry companies report a high degree of diversity and inclusion. The following recognition and executive support, as well provides an overview of some examples as funding provided to conduct a range of of ERGs and their activities supported by activities (Figure 5). PhRMA member companies.

FIGURE 6: TYPES OF EMPLOYEE RESOURCE GROUPS SUPPORTED BY THE BIOPHARMACEUTICAL INDUSTRY

Women 89%

LGBTQIA+ 83%

Veterans 72%

Individuals with Disabilities 67%

Black or African American 67%

Hispanic and/or Latinx 67%

Asian 67%

Next-Gen/Younger Professionals 61%

Indian-Subcontinent 50%

Other Types 50%

Source: PhRMA/TEConomy Partners’ survey; percentages represent the share of total companies responding. 17 Education and Training to Support an Inclusive Workplace

An evaluation of 40 years of research on understanding cultural biases, and an- diversity training finds evidence of a positive ti-racism. Some examples include: impact on changing knowledge, attitudes, and behaviors of different populations.20 • Alkermes provides unconscious bias Notably, the analysis also shows that the training for employees and participates most impactful diversity trainings were in multiple women’s leadership training complemented by other D&I initiatives, programs, helping to advance an were targeted to both awareness and skills environment at the company where all development, and were conducted over a voices are respected and valued. significant period of time. Biopharmaceutical companies are proactively training em- • Astellas hosted a virtual forum focused ployees to advance diversity and inclusion, on race-based incidents of violence and especially on subjects such as overcoming harassment against the Black community. unconscious or implicit biases and increas- Nearly half of the company’s U.S.-based ing understanding of and appreciation for employees attended the event, led cross-cultural collaboration benefits. by the company’s African American Employee Impact Group (AAEIG), in part- Providing Professional Development to nership with other affinity groups and Address Biases and Improve Inclusivity leadership councils. The forum provided Among the companies surveyed, the employees with insights into the impact vast majority are providing D&I training of race-based incidents aimed at the throughout their organizations. Engaging Black community and how employees leadership and other employees early can support their colleagues and team and often are vital to advancing diversity members. A post-event survey revealed and inclusion. For example, an analysis by that more than 75% of respondents researchers at Stanford VMWare Women’s said they planned to change something Leadership Innovation Lab finds that getting about their behavior or take other managers and other leaders involved from positive actions. the start is often overlooked but is a pivotal step toward implementing change.21 • Boehringer Ingelheim redesigned its D&I training to be inclusive of topics PhRMA member companies surveyed such as unconscious bias, physiological encourage their employees to develop safety, and supporting an “Upstander” cultural competencies and anti-discrimina- mindset, which denounces all acts of tory behaviors. Notably, 89% of companies racism, discrimination, and violence conduct other training for employees and initiates positive actions that on subjects such as unconscious bias, promote meaningful, cultural change, learning from differing perspectives, and reinforce a safe environment of

20 Bezrukova, K., Spell, C. S., Perry, J. L., and Jehn, K. A., “A meta-analytical integration of over 40 years of research on diversity training evaluation,” Psychological Bulletin, 11, 1227-1274, 2016. 21 What works? Evidence-Based Ideas to Increase Diversity, Equity, and Inclusion in the Workplace, Chapter 6: Context Matters: Moving beyond “Best Practices” to Creating Sustainable Change, May 2020. 18

belonging via internal and external • Novartis uses recently implemented global communications. hiring guidelines to help increase the gender and racial/ethnic diversity in lead- • Johnson & Johnson partnered with ership and across the organization, while a Harvard University professor Mahzarin new talent acquisition team is specifically Banaji, an expert on unconscious biases, focused on supporting D&I recruiting. to create and deliver “Introduction to Managing Unconscious Bias” training, • Pfizer requires company-wide training exploring how blind spots are created, to address topics such as racism, and our minds can learn and adapt to conscious and unconscious bias, and make better decisions. As of 2019, more bystander responsibility straightforward- than 105,000 global J&J employees, 95% ly and directly. By redirecting the re- of people managers, and more than 85% cruitment process behind the company’s of all employees have completed uncon- Summer Student Worker program, 67% scious bias training. J&J is continuing a of Pfizer’s interns were disadvantaged or phased rollout of these training, expand- underrepresented students. ing from people leaders to individual contributors to their office environment Building an inclusive team is essential to en- and manufacturing sites. suring that all individuals’ different perspec- tives and contributions are fully appreciated. • Merck & Co. provides a thorough train- As such, encouraging managers and other ing course, “Foundations of Diversity & corporate leaders to undergo diversity and Inclusion Training,” where employees inclusion training is critical. Notably, 89% of explore why these values are essential companies surveyed conduct training to to the company and the broader market- advance D&I in management-level posi- place. Since the launch of this program tions. Select examples include: in 2017, more than 50% of all employees globally have completed this voluntary • Astellas requires all U.S.-based people training, which is available in nine lan- managers, interviewers, and other stake- guages. Recently, training has become holders involved in the interview process mandatory for all employees globally. to take training on implicit biases before 19 leadership development training and other “I am proud to work for a company pull-through diversity training offerings. that supports women in the work- force—especially those of us in • Sanofi engages leaders from all STEM. We have been fortunate business units and functions in the to retain and develop great tal- MARC (Men Advocating Real Change) Program. Through this program, partic- ent, and it’s so rewarding to see ipants engage with a cross-company women in leadership positions at network to enhance their leadership all levels of our organization.” effectiveness and discuss ways to effect change in their respective organizations. – Vikki Sluzky, Senior VP, Technical Conducted in partnership with the Development, BioMarin global nonprofit Catalyst, MARC enables emerging and senior male leaders to de- participating in any hiring activities. The velop critical inclusive leadership strate- course’s goal is to increase awareness of gies, sharpen awareness of inequalities, organizational processes and involuntary unconscious biases, and privilege, and attitudes that may affect selection and hone skills to make a lasting impact. hiring decisions and provide tools and re- sources to help managers select the best Advancing Diversity Through candidates for open positions objectively. Investments in Leadership Development Beyond explicit training designed to raise • BioMarin Pharmaceutical offers live awareness of unconscious bias and differ- training workshops dedicated to building ent cultures, advance anti-discriminatory and maintaining a respectful workplace. behaviors, and other related areas, numer- In 2019, every BioMarin manager—over ous biopharmaceutical companies promote 800 in all—completed this workshop, training among their underrepresented which offered active strategies and employees to help support their career tactics to improve inclusivity and avoid advancement and develop diverse cohorts discrimination. of leaders. Examples of efforts to promote leadership development include: • Bristol Myers Squibb educates exec- utives throughout the organization on • Bristol Myers Squibb, in partnership with overcoming unconscious bias and help- the Columbia University Graduate School ing participants recognize the biases in of Business, offers “LEAD” (Lead. Engage. their daily interactions, behaviors, and Accelerate. Develop.), a professional decision making. Further, participants development program for women and analyze the impact of bias on business multicultural employees who demon- performance and employees and identify strate strong leadership potential. The mitigation strategies. program is designed to accelerate the movement and improve the readiness • Novo Nordisk facilitates live, virtual and visibility of high-performing and tra- unconscious bias training globally to all ditionally underrepresented employees people managers and the entire global into positions with more responsibility. human resources team. This training is also available as an online learning resource • Johnson & Johnson provides two and helps anchor the company’s new programs designed to accelerate 20 high-potential, high-performing, mid-lev- Diversifying the STEM Talent Pipeline el diverse talent into more senior roles: Most companies surveyed report support ASCEND focuses on developing women, for initiatives that seek to inspire and and RISE focuses on multicultural lead- develop a more diverse talent pipeline, ers in the U.S. Both programs include especially in STEM fields vital to the bio- in-person residences, coaching, execu- pharmaceutical industry and overall U.S. tive sponsorship, assessments, applied competitiveness. The industry truly stands learning, and development planning. out in these efforts, as documented in a companion report with an assessment of • Merck & Co. leverages its Women’s biopharmaceutical industry support for U.S. Leadership Program (WLP) to increase STEM education.22 The study finds that the gender diversity of leadership by PhRMA member companies have initiated creating a pipeline of high-potential and supported more than 70 STEM educa- mid-manager talent, increasing retention tion programs across the country that have of these women, and creating more reached 7.4 million students and 25,000 opportunities for their advancement. The teachers over the last five years, and that WLP sharpens leadership skills, builds a majority of the STEM initiatives reported self-awareness, provides organizational target population groups traditionally navigation skills, increases exposure to underrepresented in STEM fields. senior leaders, and fosters a sense of community for high-potential women. These STEM education programs are highly impactful and are achieving impressive • Novartis recently launched its scale. Programs targeting underrepre- Multicultural Engagement Program (MEP) sented population groups account for a to increase engagement and retention of majority of the student participants across diverse talent by investing in and sup- all industry-supported STEM education pro- porting career development and growth grams—nearly 6.5 million students across through a comprehensive learning the U.S. Examples of initiatives include: experience. • The Amgen Foundation supports a • Sanofi prepares a pipeline for a future range of programs related to increasing generation of female senior leaders and diversity and reducing disparities in executives through ELEVATE, a global STEM, including foundational support for female talent accelerator program. The LabXchange and Khan Academy, free 9-month blended learning journey online science education platforms, and includes a variety of resources and the Amgen Biotech Experience, which activities, including virtual webinars on empowers teachers to bring biotech- strategic networking, career navigation, nology to their classrooms. The Amgen and workshops on leadership, personal Foundation is actively seeking partner- branding, and executive presence. ships with Historically Black Colleges Importantly, ELEVATE also offers mentor- and Universities (HBCUs) to increase ship, peer feedback, individual coaching, these programs’ reach. and follow-up discussions on career and professional development plans.

22 TEConomy Partners, “The Biopharmaceutical Industry’s Sustained Commitment to Inspiring and Advancing Tomorrow’s STEM Work- force,” 2020. 21

• Boehringer Ingelheim U.S.A. partici- partners such as Girl Scouts of the USA, pates in Connecticut’s STEAM Council Smithsonian Science Education Center, on Girls & Women, an initiative of the JA Worldwide, and FHI 360, the initiative governor’s office that assists with coor- has reached more than 6 million girls dinated state responses to issues that since its inception, more than six times impact the lives of women, girls, their its original goal. families, and the State of Connecticut. • Johnson & Johnson introduced the • GlaxoSmithKline participates in the Re-Ignite program in 2019, a paid HBCU Partnership Challenge, a com- four-month “returnship” program for mitment to working with HBCUs to experienced professionals who have forge stronger, strategic partnerships taken a break of two years or more and incorporate these colleges and from a STEM2D career. The program universities within their D&I efforts. features in-depth onboarding, mentoring GlaxoSmithKline also leads Science in support, technical training, and alumni the Summer, a national coalition that guidance. All individuals who completed provides elementary-aged students from the program moved into full-time posi- underserved populations with STEM tions. Through the Re-Ignite program, learning opportunities. J&J can tap into a new talent pool of experienced, highly engaged, technical • Johnson & Johnson’s WiSTEM2D leaders who fit its corporate culture. initiative (Women in Science, Technology, Engineering, Math, Manufacturing, and Design) supports girls and women of all ages, helping them pursue STEM2D studies and careers no matter where they are located. Working with 22 Enabling Infrastructure to Advance D&I Through Leadership Positions, Councils, and Teams

Biopharmaceutical companies are among the wave of organizations throughout the U.S. designating new leadership and organizing “Throughout my career, I’ve seen councils and teams to implement D&I strat- the value of bringing together egies and initiatives. As with any effort to diverse teams—and the profound implement changes to corporate culture and practices, dedicated leadership and employ- impact they can have. They bring ee participation, input, and buy-in are critical. new ideas and perspectives to the table which often leads to The Chief Diversity and Inclusion Officer incredible innovation. In the life position at the executive level is increas- sciences industry, this innovation ingly utilized to create and implement an ultimately benefits the patients we organization’s strategies for advancing D&I serve each and every day. It is for and aligning related goals with business outcomes. Elevating this position to the this reason that we have made “C-Suite” not only demonstrates a commit- diversity and inclusion part of our ment to implementing a D&I strategy but also business strategy.” enables the executive to effectively connect across other functional areas of the organiza- – Richard Paulson, CEO, Ipsen North tion, including human resources, legal, R&D, America, Ipsen Biopharmaceuticals marketing, and other top leadership.

Employee diversity and inclusion coun- cils, which typically include senior-level D&I practices. These councils also work managers and other executives, focus on with company leadership to establish clear initiating, managing, and institutionalizing goals and metrics related to D&I and align

FIGURE 7: BIOPHARMACEUTICAL INDUSTRY DESIGNATING LEADERSHIP POSITIONS, COUNCILS, OR TEAMS TO ADVANCE DIVERSITY AND INCLUSION 50% 78% Have D&I leadership Utilize a cross-functional represented in a Diversity Council or C-Suite position Leadership Team

Source: PhRMA/TEConomy Partners’ survey; percentages represent the share of total companies responding. 23 activities with its overarching business an approach for promoting diversity strategy. Overall, councils help play a vital in recruitment efforts, and diversity role in the oversight and assessment of the education. These efforts seek to foster effectiveness of the D&I function. an environment that is diverse, inclusive, and one in which employees and stake- Most of the companies surveyed are imple- holders feel a sense of belonging. menting D&I strategies and initiatives utilizing diversity councils or leadership teams, while • Astellas’ Diversity and Inclusion half report having D&I leadership represented Governance Council meets approxi- in a C-Suite position (Figure 7). Other compa- mately six times per year and encom- nies surveyed who have not yet implemented passes nearly two dozen senior leaders these hires or initiatives indicate they are in from across the organization to ensure the planning stages of developing advisory that D&I remains a strategic imperative committees, councils, or teams. at Astellas, embedded into all functions and held to tangible, measurable results. The following are some examples of biophar- Co-chaired by the company’s CEO and maceutical companies utilizing D&I Councils: its Chief Medical Officer, the Council helps set an evolving vision and strategy • Alexion Pharmaceutical’s Diversity, for D&I, shape the business case for Inclusion, and Belonging (DI&B) why it is imperative, endorse related Advisory Board has leadership roles operational plans, act as role models focused on internal diversity efforts, for inclusive leadership, and track key external diversity efforts, diversity performance indicators. business partnerships, and diversity program management. Sponsored by its • AstraZeneca Pharmaceutical’s Global Chief Diversity Officer and co-chaired Inclusion & Diversity Council is chaired by the Chief Commercial Officer and by the company’s CEO and includes Chief Compliance Officer, this Advisory representatives from across senior Board comprises 20 cross-functional and executive team (SET) areas and critical cross-geographical representatives that geographies. To ensure D&I is wide- reflect the cross-section of Alexion’s em- spread throughout the company, this ployee ecosystem and provide advisory diverse strategic body is accountable for and guidance on the DI&B efforts. Other developing and implementing a strategy activities of the Advisory Board and for each SET area and key geography. its network include a DI&B innovation incubator to accelerate the pace of new • Bayer’s U.S. Executive Inclusion & pilots and programs, “Tiger Teams” to Diversity Council is comprised of the turbo-charge company efforts ranging Country Leadership Team and other from talent to learning, and informational key leaders across the company. The and interactive listening and learning Council partners with U.S. and Global series focused on DI&B. Inclusion and Diversity leadership to actively drive the company’s diversity • Alkermes’ Diversity, Inclusion, and and inclusion strategy, including estab- Belonging Steering Committee has lishing U.S. goals, integrating relevant put forth a strategic roadmap for the considerations into all business, people, organization, including establishing and partner decisions, building account- Employee Resource Groups, developing ability, and leading change. 24 • Boehringer Ingelheim U.S.A.’s Diversity, regularly plan and execute events that help Inclusion, Culture & Equity (DICE) team reshape their departments’ cultures by has launched educational sessions to encouraging employees to understand and support employees during the COVID-19 appreciate an inclusive workplace climate. pandemic and address racial injustices Novartis’ D&I Councils are fully supported at a company-level. The “Navigating by senior leadership and aligned with Through Uncertainty & Ambiguity” functions, departments, and field represen- session was approved by the Board of tative groups throughout the organization. Managing Directors and is now offered Because D&I Councils represent a wide globally to support employees, while variety of backgrounds, perspectives, and the “Courageous Conversations: Race geographies, they are well-positioned as & Belonging” educational offering has learning communities, engagement forums reached nearly 2,000 employees. and networks of influence.

• EMD Serono’s Diversity Advocates • Sanofi US Executive I&D Council mean- Board (DAB) within Healthcare works ingfully contributes to the I&D (Inclusion to improve D&I across the company’s and Diversity) strategy by implementing healthcare business sector. In addition to and impacting relevant programs, pro- driving an overall D&I agenda, the DAB cesses, and initiatives across the Sanofi developed a “diversity dashboard” to enterprise. This council provides critical ensure employees have information on insights from within Business Units and upcoming D&I activities, access to D&I Functions and helps create a continuous leaders, and awareness of key perfor- feedback loop to maximize the impact of mance indicators tracked. I&D across the enterprise. The council’s executive sponsor is the President of • Lundbeck’s Diversity, Equity, and Sanofi North America. It is co-chaired Inclusion (DE&I) Council helps ensure by two Business Unit Heads, which Lundbeck U.S. reflects the diverse helps ensure that executives across the communities they serve and helps company also proactively seek ways to create initiatives that drive diversity connect I&D to business imperatives to and inclusion internally and externally. drive innovation and growth. The Council allows Lundbeck to gain a deeper understanding of the company’s progress toward its DE&I goals, identify opportunities for improvement in the area of collaboration and belonging, and establish a forum for open and honest dialogue about colleagues’ perception of equity within Lundbeck.

• Novartis Pharmaceuticals’ Diversity and Inclusion Councils are self-organized groups of employees who have assumed responsibility for infusing diversity and inclusion within their functional areas and business organizations. These groups 25 Leveraging External Partnerships to Build a Diverse Talent Pipeline and Support Broader Goals

The biopharmaceutical industry is advancing study of oncology treatments found that diversity and inclusion on several other Black Americans represented fewer than essential fronts that extend well beyond 5% of clinical trial participants, which is a company’s doors and into their local less than half of their share of the national communities and broader networks. population (13%).23 These racial disparities Efforts to encourage corporate social in clinical trial participation can exacerbate responsibility are integral to achieving a broader health inequities. “triple-bottom-line,” attracting and retaining diverse talent and signaling a commitment To help address these disparities, June to a company culture that values diversity 2019 guidance from the U.S. Food and Drug and inclusion. Through activities that are Administration (FDA) encourages companies often in partnership with a wide range of to consider a variety of factors to increase collaborating organizations, notable focus trial diversity, especially including trial sites areas for broader D&I goals include: in locations with higher concentrations of people of color, and varying locations based • Enhancing the diversity of clinical on geography, education, and income.24 trials populations; Other factors in developing more diverse • Investing in communities disproportion- clinical trial research sites include commu- ately impacted by COVID-19; nity outreach, ensuring the process and • Addressing disparities in health materials are culturally and linguistically ac- and treatment; cessible, and having trial site staff or project • Increasing diversity in the industry’s leads representative of trial participants.25 supply chain; and, Furthermore, in the fall of 2020, the PhRMA • Committing to drive systemic change in Board of Directors approved PhRMA’s communities throughout the country. Principles on Conduct of Clinical Trials and Communication of Clinical Trial Results to Enhancing Diversity help assure that clinical research conducted in Clinical Trials Participation by America’s biopharmaceutical companies Clinical trials are a critical component of continues to be carefully conducted and the long and complex drug development that meaningful medical research results are process, and the innovative biopharma- communicated to healthcare professionals ceutical industry is the global leader in and patients.26 Additionally, many compa- developing new medicines that improve the nies in the biopharmaceutical industry also lives of patients. However, recent research make diversifying clinical trials a specific shows that many communities of color are pillar of their broader efforts toward diversi- frequently underrepresented in clinical ty and inclusion: trial development. For example, one recent

23 U.S. Food and Drug Administration, “Enrollment Practices, and Trial Designs Guidance for Industry,” June 2019. 24 Ibid. 25 Society of Clinical Research Sites, “Diverse Enrollment In Clinical Trials: What Do Successful Research Sites Have In Common?” Clini- cal Leader, May 2020. 26 See: https://www.phrma.org/-/media/Project/PhRMA/PhRMA-Org/PhRMA-Org/PDF/P-R/PhRMAPrinciples-of-Clinical-Trials-FINAL.pdf. 26

“We believe that we have an opportunity to impact healthcare disparities in underrepresented populations through our clinical tri- als. We have now set an expecta- tion that all clinical trial recruitment demographics will match those of the countries where the trials are taking place.”

- Albert Boula, CEO, Pfizer

• Biogen has increased patient engage- of racially and ethnically diverse ment and education around diversity populations in U.S. trials with the goal in clinical trial participation through of striving for health equity for all U.S. its collaborations with the Center for patients. Lilly is an active participant and Information and Study on Clinical supporter of numerous health consor- Research Participation (CISCRP). Biogen tiums singularly focused on driving has helped plan community education improvement in diversity participation programs around clinical research and health equity, including PhRMA, the participation and participated in conver- Multi-Regional Clinical Trials Center of sations at CISCRP Aware for ALL—a free Brigham and Women’s Hospital and program that brought people of diverse Harvard, TransCelerate Biopharma Inc., backgrounds together to learn about the and the National Medical Association’s clinical research process. Project I.M.P.A.C.T.

• Boehringer Ingelheim U.S.A. works to • Genentech recently conducted a phase improve the diversity of patients within III study of COVID-19 patients hospital- human clinical trials, enhance accessibility ized with pneumonia. With an intentional to participation in clinical trials (e.g., virtual focus on recruiting in predominantly health, telemedicine, transportation, etc.), underserved communities who have and provide affordable medicines. been disproportionately impacted by COVID-19, more than 85% of patients • Eli Lilly and Company seeks to improve in this trial are from underrepresented the participation rates of diverse pa- racial and ethnic groups, and the major- tients across its clinical trials, matching ity are Hispanic. Separately, a recently the population’s composition in each initiated phase IV trial of relapsing therapeutic area, and increasing the multiple sclerosis (MS) patients is the representation of diverse investigators first prospective trial developed in and site staff who provide the care collaboration with MS patients, patient to patients and deliver quality results. advocacy groups, and investigators, to Learning from historical best practices exclusively focus on meeting the needs and contemporary events, Lilly continues of underserved patients with MS. to focus on increasing the participation 27 • Johnson & Johnson is focused on advanc- corporate foundations are also providing ing diverse and inclusive participation in substantial financial support to help assist clinical trials to ensure data and insights these communities and work to address from underserved and underrepresented health and economic disparities related to populations inform the development of the pandemic. Examples include: safe and effective products and treatments. As part of continuing efforts to drive aware- • AbbVie is donating $35 million to help ness about clinical trials within commu- support underserved communities and nities of color, Janssen Pharmaceutical healthcare systems working to address Companies of J&J launched an education- the impact of the COVID-19 global pan- al website to underscore the importance demic. Included in this total is $5 million of diversity in creating inclusive and for a new AbbVie COVID-19 Community representative trials. Resilience Fund, which is intended to strengthen community resilience in • Pfizer has incorporated several inno- under-resourced areas impacted by vative programs to meet its goals for COVID-19. increasing diversity in clinical trials, including creating a real-time dashboard • Genentech and the Genentech for recruitment tracking, new investigator Foundation have committed $42 million training programs, new internal and to address the devastating impact of the external partnerships, and the develop- COVID-19 pandemic. This support in- ment of a collaborator network. cludes emergency response grants and

Investing in Communities Disproportionately Impacted “Rigorous scientific studies into by COVID-19 the underlying biological drivers For many diseases, communities of color are likely to be disproportionately impacted, of disease and increased partici- largely a result of systemic racial and pation from diverse populations in economic inequities. In particular, the clinical studies, as well as in- COVID-19 pandemic has brought to light creased awareness among health- the stark socioeconomic disparities that care professionals, are needed to exist in many communities across the best treat all patients in this evolv- nation. An analysis of Centers for Disease ing world of personalized health- Control and Prevention (CDC) data finds that Black and Latino people in the U.S. are care. To advance better health three times as likely to contract the novel outcomes for all, clinical research coronavirus than their white neighbors and must reflect demographic trends nearly twice as likely to die from complica- and include more diverse popula- tions due to the disease.27 tions.”

In addition to the significant R&D efforts for - Quita Highsmith, Chief Diversity Officer, safe and effective COVID-19 treatments Genentech and vaccines, multiple companies and their

27 The New York Times, “The Fullest Look Yet at the Racial Inequity of Coronavirus,” July 2020. 28 funds for longer-term recovery efforts, patients with underlying health condi- with a range of investments specifically tions and strengthen health systems focused on assisting low-income house- and the capacity of frontline healthcare holds and communities of color who are workers to provide care for vulnerable experiencing the most harm. patients.

• The Gilead CARES initiative is actively • Novartis Pharmaceuticals and the providing funding to help communities Novartis U.S. Foundation are estab- cope with the COVID-19 pandemic. lishing a $5 million U.S. COVID-19 Approximately half of this $20 million Community Response Fund for immedi- fund has been committed to supporting ate response and recovery efforts relat- organizations worldwide working on ed to the pandemic in U.S. communities. HIV and LGBTQ+ issues. Through this work, Gilead Sciences is also supporting • Novo Nordisk Inc. has donated $1 nonprofits such as the Los Angeles million to support COVID-19 relief efforts LGBT Center and San Francisco AIDS in the communities they serve, offering Foundation, organizations on the front a combination of charitable giving and lines of working to support the health, food donations and distribution through- wellness, and social justice of the out the public health emergency. communities they serve. • UCB launched a new UCB Community • Johnson & Johnson is committing $50 Health Fund with an initial contribution million to support and supply frontline of more than $3 million and an aim health workers from providing meals to to address health disparities among protective equipment, extra training to vulnerable populations. The Fund will mental health support. This commitment focus on contributing to understanding expands upon a $250 million multi-year and reducing the medium- and long-term commitment made earlier in the year to impact of the COVID-19 pandemic on support those at the frontlines guided the physical, mental, and social well-be- by the Johnson & Johnson Center for ing of vulnerable populations. Health Worker Innovation. Built on a legacy of purpose-driven actions and a Addressing Disparities in Health, commitment to diversity and inclusion, Treatment, and Care Delivery the company aims to represent popula- While the biopharmaceutical industry under- tions that have been disproportionately stands that innovative medicines are only impacted by the pandemic in implement- successful if they can reach all the patients ing its COVID-19 Phase 3 trial program. who need them, many of the challenges in accessing healthcare are often outside of the • Merck & Co. and the Merck Foundation patient’s control. As part of its commitment are committing more than $30 million to to health equity and advancing inclusive COVID-19 relief efforts, including $10 research, Genentech commissioned a million in support of activities related landmark study of more than 2,000 patients to addressing health disparities and in the U.S. to better understand how they inequality among patients and communi- perceive and interact with the healthcare ties. Merck & Co. is also partnering with system. Initial findings illuminate these organizations to support underserved inequities with new clarity, revealing a crisis and vulnerable communities and 29

“We recognize that communities of color are experiencing dispropor- tionate impact due to the current pandemic. As a company focused on health and nutrition, having a deeper understanding of the so- cial and economic inequities that exist in the communities we serve is important and has great signifi- cance for us.”

- Bayer U.S. Leadership Team

of trust in the healthcare system among communities, and reduce clinical medically disenfranchised communities.28 disparities through data generation.

As companies focused intensely on improv- • EMD Serono has implemented the ing human health, members of the pharma- Healthy Women, Healthy Economies ceutical industry have an inherent interest initiative to unlock the power and poten- in reducing health disparities. Throughout tial of women around the world. A key the sector, companies are spearheading element of this initiative is to support new initiatives, collaborating with external women with cancer and address their partners, and offering wrap-around support unique challenges and unmet needs. services to help address health disparities EMD’s research finds that tailored and inequities. support services are needed to help improve quality of life. With an understanding that many com- munities of color face significant health • Genentech provided a transformational disparities because of systemic inequalities, grant to Stand Up to Cancer (SU2C) to multiple PhRMA member companies are launch the first multidisciplinary Health working to reduce these disparities, espe- Equity Breakthrough Research Team, cially in the specific disease areas on which including $6 million for cancer research they focus. Select examples include: in underrepresented populations. With a focus on addressing racial and ethnic • Biogen founded MS UP, a program that disparities in cancer care, this invest- seeks to improve multiple sclerosis ment seeks to integrate diversity, equity, (M.S.) outcomes among underrepre- and inclusion in innovative approaches sented racial and ethnic populations in to cancer research and treatment. the U.S., enhance external resources and partnerships with patient advocacy • Gilead Sciences announced a new groups to better reach underserved partnership with Morehouse School of

28 Genentech, “A New Perspective on Health Inequity,” September 2020. 30 Medicine’s Satcher Health Leadership Institute to better understand the impact “We need to not only educate of COVID-19 on communities of color. healthcare providers about The partnership will develop a real-time, differences in disease presenta- public-facing, and comprehensive health equity data platform that informs action- tion and outcomes of underrep- able, evidence-based policy changes resented populations but help to attain health equity and including them embrace these differences information on comorbidities associated becoming culturally competent with COVID-19. Gilead initially provided to optimize outcomes.” $1 million for the project and also to support the creation of a Black Health - Wanda Castro-Borrero, MD, Director, US Equity Alliance, composed of national Medical MS Franchise at Biogen thought leaders, community repre- sentatives, scholars, researchers, and policymakers, which will help coordinate health equity in brain diseases, raising COVID-19 education, training, informa- awareness of health disparities, and tion exchange, and dissemination, policy promoting migraine care and outcomes analysis, and advocacy. for all people.

• Johnson & Johnson has convened the • Sanofi Pasteur, the vaccines division of Coalition for Equitable Maternal Health, Sanofi, has partnered with Sustainable which will officially debut on Capitol Healthy Communities to launch DRIVE Hill in 2020. The group is comprised of (Demonstrating Rising Influenza Vaccine organizations like the American College Equity), a population health initiative to of Obstetricians and Gynecologists improve influenza vaccination rates in (ACOG), March of Dimes, and the Black underserved, vulnerable communities. Mamas Matter Alliance, with the goal Through a series of pilot projects with of uniting to advocate for the needs of select regional health systems, DRIVE America’s Black expectant mothers. J&J has already produced a sizable increase also consistently weighs in to support in flu immunization rates among these the maternal health community’s appro- populations, seeing anywhere from 15% priations priorities and numerous pieces to 50% increases. of legislation that aim to ease disparities. In addition to programs that focus on • Lundbeck has supported the Disparities specific patient populations, others use an in Headache Advisory Council, a equity lens to address health disparities cross-functional group of patient advo- more broadly in the communities where cacy organization leaders, headache companies operate. Examples include: patients, and healthcare providers committed to radically changing the • Alexion Pharmaceutical’s philanthropic outcomes for people of color. Research areas of focus, across both the company shows that Black and Hispanic women and the recently launched Alexion face a particular burden when it comes Charitable Foundation, support orga- to migraines yet are less likely to be di- nizations that serve disadvantaged or agnosed or receive appropriate medical disenfranchised communities, focusing care. Lundbeck is focused on advancing on advancing emotional well-being, 31

enhancing educational opportunities, healthcare-related or community-based and increasing diversity in society and programs or activities that help under- critical institutions. served or underrepresented populations and support education and advocacy on • Genentech launched The Resilience behalf of patients and their families. Effect, investing $20 million since 2017 to address the impact of childhood • Pfizer is directing $5 million to address trauma—including racism, violence, and health equity and disparities, delivering abuse—on kids’ and families’ health $3 million specifically to address health- and well-being. The initiative includes care disparities in the Black community partnerships to improve pediatric care and support social justice work. The for 100,000 low-income children and remaining $2 million of these funds are families across the Bay Area, and re- directed toward communities of color search and advocacy support to design suffering disproportionately from the and scale new interventions to promote COVID-19 pandemic. children’s health and reduce healthcare disparities later in life. Committing to Drive Systemic Change While many pharmaceutical companies have • Novo Nordisk launched Farmhouse to long-standing pledges to increasing D&I in Your House, a collaboration between the workplace and across the industry, re- community-based organizations, farms, cent months have seen these commitments and diabetes prevention programs to elevated from aspirational goals to significant tackle diabetes in Mississippi, which investments capable of driving systemic ranks second in the nation for overall change. Examples of support include: diabetes prevalence. This initiative aims to help underserved people learn how to • AbbVie is committing $50 million over manage their health and bring nutritious five years to partner with nonprofits on food to those who need it. a long-term, multi-faceted program that seeks to bring lasting change around • Otsuka America Pharmaceutical pro- quality education, jobs, healthcare and vides donations and sponsorships for justice. The company also announced an 32 immediate donation of $5 million to the Foundation’s commitment will focus on NAACP Legal Defense and Education Fund exposing and combatting hard truths and the Equal Justice Initiative to address about racial injustice and providing issues in the criminal justice system. grant opportunities to improve educa- tional, health, criminal justice, and social • The Amgen Foundation is dedicating mobility outcomes for people of color. $7.5 million over the next three years The employee volunteer service hours to support racial justice and economic are committed by Lilly to help fight racial opportunity. In addition to distributing injustices, building on the company’s $500,000 to each of four national orga- ongoing efforts to create a more diverse, nizations focused on driving systemic equitable, and inclusive culture within change (the NAACP Legal Defense and the company, in the communities it Educational Fund, the Equal Justice operates, and across the world. Initiative, Race Forward and Echoing Green), the Amgen Foundation will • Johnson & Johnson is taking concrete also partner with local leaders in U.S. actions as part of its long-term efforts to communities where the company has a fight for racial and social justice, focusing significant presence to distribute grants its commitment on three key areas: their that empower local and diverse team people internally, equitable healthcare members to build a more just and equal for the communities they serve, and cre- society. Plans will be rolled out in Ventura ating alliances with other organizations County (CA), where Amgen is headquar- to help advance its goal. Partnerships tered, as well as San Francisco and Los include BIO, AdvaMed, and PhRMA on Angeles (CA), Cambridge (MA), Juncos health equity initiatives in the U.S., and (P.R.), Tampa (FL), Rhode Island, Kentucky, to propose new policies to enable more Washington D.C., and New Jersey. diverse clinical trial representation.

• Bristol Myers Squibb and the Bristol PhRMA members are also helping to drive Myers Squibb Foundation are committing long-term systemic change through foun- $300 million to systematically accelerate dational leadership and financial backing to and expand health equity and D&I ef- help develop “collective impact” programs forts. This investment is targeted toward around STEM education. These initiatives addressing health disparities, increasing use a structured form of collaboration to clinical trial diversity, increasing supplier coalesce a group of actors from different diversity, and increasing the representa- sectors around a common agenda over an tion of Black and Hispanic/Latinx employ- extended period. These long-term strategies ees at all company levels. Additionally, the involve various partners and seek to address Foundation is doubling employee dona- structural challenges related to social tions to organizations that are fighting problems such as racial achievement gaps health disparities and discrimination. in STEM education. Examples of collective impact approaches to STEM education • Eli Lilly and Company and the Lilly spurred by PhRMA members include: Foundation are pledging $25 million and 25,000 volunteer hours over five • The Biogen Foundation’s collaboration years to decrease the burden of racial with a variety of local partners in the injustice and its effects on local and Greater Boston area to conduct its STAR national communities of color. The Lilly Initiative (Science, Teacher Support, 33 Access & Readiness). STAR is designed disorders, Lundbeck is acutely aware of to overcome disparities in STEM educa- the role behavioral and emotional health tion by supporting the development of a can play in an individual’s quality of life coordinated ecosystem of organizations and academic success. that help low-income students develop and sustain their interest in STEM, gain Increasing Diversity in the necessary STEM exposure and enrich- Industry’s Supply Chain ment opportunities, and successfully Studies show that increasing diversity in transition into post-secondary education company supply chains has benefits that in pursuit of STEM careers. reverberate throughout the industry. A report by Ernst & Young and the U.N. Global • GlaxoSmithKline will commit $10 Compact finds that effective supply chain million over 10 years in charitable diversity programs are critical for talent investment as well as the energy and attraction, as employees are likely to advo- expertise of skills-based employee cate on behalf of these programs and serve volunteers to support the Philadelphia as “ambassadors” for their companies.29 An STEM Equity Collective. A partnership economic impact analysis of the National with Philadelphia Education Fund’s Minority Supplier Diversity Council (NMSDC) Philadelphia STEM Ecosystem, the estimates that certified minority-owned collective features more than 60 orga- businesses have a total economic impact of nizations from across Philadelphia in over $400 billion in output, which results in a collaborative effort to increase the the creation and retention of more than 2.2 number of Black, Latinx and female million direct and indirect jobs.30 Philadelphia students entering STEM careers by 2030. Among the biopharmaceutical companies surveyed, 89% have efforts to advance • Lundbeck helps develop the next gen- diversity and inclusion among contractors eration of scientific leaders through its or vendors. These initiatives’ impacts are ongoing collaboration with Perspectives/ significant and can reach into the billions of IIT Math & Science Academy, a STEM- dollars given the supply chain demand and focused charter school on Chicago’s expenditures of biopharmaceutical compa- South Side, where it’s partnered for the nies. Examples include: past ten years. Because students from disadvantaged communities face distinct • GlaxoSmithKline’s Supplier Diversity challenges in accessing STEM education, Initiative seeks to identify and develop this partnership has helped enhance diverse businesses to support its com- learning opportunities and provide mercial ambitions while contributing Perspectives students with a pathway to its social responsibility of improving to STEM success. Some programming the economies of the communities they focuses on mental health, sexual health, serve. The Initiative includes Minority-, and substance abuse through this long- Women-, Veteran-, Lesbian, Gay, Bisexual term partnership. As a company commit- and Transgender (LGBT)-, and Disability- ted to helping people living with brain owned businesses, businesses located in

29 Ernst & Young and UN Compact, “The state of sustainable supply chains: Building responsible and resilient supply chains,” January 2016. 30 National Minority Supplier Development Council, “Economic Impact Report: The Effects of NMSDC Certified Minority Business Enter- prises on the U.S. Economy,” September 2015. 34

“Inclusion and diversity aren’t just buzz words at Sanofi. They’re critical components to our mission of empowering life and supporting all patients—regardless of race, gender, background or sexual orientation—through their health challenges. By prioritizing these qualities in our work, we’re better positioned to help patients be- yond our walls and transform the broader healthcare ecosystem to Historically Underutilized Business Zones meet their needs.” (HUBZone’s), and small businesses. - Cristina Santos, Head of Inclusion & • Johnson & Johnson’s Global Supplier Diversity North America, Sanofi Diversity and Inclusion program has been making an impact in connecting diverse businesses with growth opportu- • Novartis recently implemented a Diverse nities for more than 20 years, extending Supplier Protocol to increase spending to 14 countries around the globe. In with women-, minority-, veteran- and 2018, for the eighth consecutive year, LGBTQI-owned businesses. Johnson & Johnson maintained member- ship in the Billion Dollar Roundtable, an • Pfizer has emphasized supplier diver- exclusive group of 28 companies that sity. A 2018 report cited $2.8 billion advance corporate best practices for spent over the prior four years with supplier diversity and spend at least $1 certified Minority Women Business billion annually with certified minority-, Enterprise (MWBE) suppliers, which women-, veteran-, LGBTQ-, and disabili- spans partnerships with 800 MWBE ty-owned businesses. suppliers. Additionally, Pfizer launched its first supplier mentorship program with • Novo Nordisk’s company-wide diverse diverse suppliers. supplier initiative, novoDSI, connects the business to certified small, wom- en-owned, veteran-owned, service-dis- abled veteran-owned, disadvantaged, and HUBZone businesses. These partnerships help diverse firms by offering them opportunities to grow, and Novo Nordisk benefits from their fresh thinking and unique perspectives. 35 Setting D&I Goals and Tracking Efforts and Initiatives to Assess Impact and Success

According to research cited in a recent transparency also allows for comparisons issue of the Harvard Business Review, across the industry and similarly-sized setting goals, collecting data, and closely companies. Companies in the biopharma- monitoring changes over time is essential ceutical industry stand out and are rec- to maximizing impact and increasing ac- ognized among highly-regarded national countability around diversity and inclusion.31 organizations in several D&I areas in the Most companies surveyed (78%) indicate workplace, especially the inclusion of the they are tracking their D&I efforts to assess LGBTQ+ community, support for working their effectiveness and impacts. Figure 8 parents, and promoting D&I best practices. shows a selection of the types of approach- es or measures PhRMA member companies Leading in LGBTQ+ Inclusion are using to evaluate their progress, with According to a nationally representative nearly all collecting data regarding under- survey of LGBTQ individuals across represented demographic groups advanc- all industries cited by the Movement ing to management positions, employee Advancement Project, an independent civil engagement and retention, and via regular rights and advocacy organization, 25% surveys of employees. of respondents reported they had expe- rienced discrimination based on sexual Among additional key measures or ap- orientation or gender identity, and more proaches to track progress, companies than half stated this negatively impacted indicate they assess the following: their work environment.32 Meanwhile, 27% of transgender workers reported being • Employee Resource Groups for their fired, not hired, or denied a promotion due effectiveness in areas such as en- to potential discrimination. Encouraging a gagement, promotions, and leadership genuinely inclusive workplace requires that advancement; all individuals be included, regardless of • Participation in external industry gender or sexual orientation. benchmarking of best practices using measures and reporting by groups such For more than 18 years, the Human Rights as the Human Rights Campaign and Campaign’s Corporate Equity Index (CEI) Working Mother; and, has classified employers based on their • Performing D&I assessments to gauge support for an inclusive culture and corpo- the inclusiveness of human resources rate social responsibility, the extent of their processes and procedures. non-discrimination policies across business entities, and the types of benefits provided Beyond value in tracking metrics internally for LGBTQ workers and their families.33 related to D&I, increased reporting and Companies in the biopharmaceutical

31 Harvard Business Review, “Diversity and Inclusion Efforts That Really Work,” May 2020. 32 Movement Advancement Project, “LGBT People in the Wokrplace: Demographics, Experiences, and Pathways to Equity,” 2018. 33 Human Rights Campaign Corporate Equality Index (CEI) 2020. 36

industry are well-represented among the “To solve some of the toughest nation’s top employers based on the CEI. Specifically, indicators analyzed for the challenges in medicine, we need 2020 CEI include whether the company: the best people with the best, most creative ideas. We embrace • Prohibits discrimination based on sexual our differences, and it’s driving orientation for all operations business success.” • Prohibits discrimination based on gender identity for all operations - Dave Ricks, Chairman and CEO, • Equivalency in same- and different-sex Eli Lilly and Company spousal medical and soft benefits • Equivalency in same- and different-sex domestic partner medical and soft benefits • Equal health coverage for transgender • Three distinct efforts of outreach or individuals without exclusion for medi- engagement to broader LGBTQ commu- cally necessary care nity, and if supplier diversity program is • Three LGBTQ internal training and in place, must include LGBTQ suppliers education best practices • Contractor/supplier non-discrimination stan- • Employee group or diversity council dards and philanthropic giving guidelines

FIGURE 8: APPROACHES USED TO ASSESS THE PROGRESS AND IMPACTS OF CORPORATE D&I EFFORTS (SHARES REFLECT THE PERCENTAGE OF COMPANIES INDICATING THEY TRACK D&I EFFORTS TO ASSESS EFFECTIVENESS AND IMPACTS)

We collect data on outcomes such as increased representation of identified groups or number of 100% members of underrepresented groups advancing to middle and/or upper management

We collect data to measure impacts on 100% employee engagement and retention

We collect thorough demographic data 93% on all employees at all levels

We regularly survey employees 86%

Source: PhRMA/TEConomy Partners’ survey; percentages represent the share of total companies responding that they track their D&I efforts to assess their effectiveness and/or impacts. 37 Eighteen PhRMA member companies are Companies in the biopharmaceutical industry featured as “Best Places to Work” for LGBTQ frequently go above and beyond the legal employees according to the 2020 Corporate requirements mandated for working parents. Equity Index (listed here). Notably, 17 of Each year, the publication Working Mother these companies received a perfect score releases a list of the 100 best companies for based on the nine indicators, reflecting inclusive family benefits, focusing on policies widespread commitment across the industry. such as gender-neutral leave, gradual phase- backs after parental leave, and accessible, • AbbVie affordable childcare.35 Specifically, the • Amgen analysis examines six indicators: • Astellas Pharma • AstraZeneca • Minimum number of weeks of fully • Bayer U.S. paid gender-neutral leave • Boehringer Ingelheim Pharmaceuticals • Minimum number of weeks of fully • Bristol-Myers Squibb paid maternity leave • Eli Lily and Company • Offers phase-back or reduced-hour • Gilead Sciences program to new moms returning to work • GlaxoSmithKline • Average weeks of phase-back • Johnson & Johnson for new moms • Merck & Co. • Offers backup childcare • Novartis Pharmaceuticals • Offers care for sick children • Novo Nordisk • Pfizer The 2020 Working Mother 100 Best • Sanofi Companies List features 12 PhRMA • Takeda Pharmaceutical Company Ltd member companies. Notably, three • Teva Pharmaceuticals members—AbbVie, Astellas Pharma, and Johnson & Johnson—appear in the top Supporting Working Parents 10 on this list. Other member companies While women in the workplace face featured among the 100 best companies well-documented challenges, these can for working parents include: be exacerbated for working mothers. For example, a recent McKinsey analysis • Boehringer Ingelheim Pharmaceuticals finds that 39% of women in dual-career • Bristol-Myers Squibb relationships report doing most or all the • Eli Lilly and Company housework, compared to just 11% of men • Gilead Sciences in these relationships.34 The analysis also • GlaxoSmithKline finds women were twice as likely to feel • Merck & Co. negative consequences related to parental • Novo Nordisk leave—20% of women who have taken • Sanofi a leave say it negatively impacted their • Takeda Pharmaceutical Company Ltd career, compared with just 10% of men. Women are also twice as likely to report PhRMA member companies are also that parental leave had a negative effect on well represented in a separate study their financial well-being. published by Working Mother, the 2020

34 LeanIn.org and McKinsey and Company, “Women in the Workplace, 2019.” 35 Working Mother Media, “2020 Working Mother 100 Best Companies.” 38

Best Companies for Dads list.36 Abbvie • Transparency and Demographics, spe- and Johnson & Johnson again rank in the cifically related to data on the represen- top 10, while six other member companies tation of women, people of color, and rank in the top 100: Astellas Pharma, Eli other underrepresented groups within Lilly and Company, Merck & Co., Novo their workforces. Nordisk, Sanofi, and Takeda Pharmaceutical Company Ltd. • Adherence to best practices for foster- ing D&I in recruitment, retention, and Promoting D&I Best Practices advancement. Many efforts to disclose information such as representation in hiring, promotions, and • Best practices in promoting a company leadership are lauded for their transparency, culture that values D&I. but not necessarily for the progress that companies may or may not be making based Several PhRMA member companies on their own internal D&I data and metrics. are included in the DBP Inclusion Index, Diversity Best Practices (DBP), a part of the including: AbbVie, Astellas Pharma, Working Mother Network, develops the DBP Boehringer Ingelheim Pharmaceuticals, Inclusion Index annually to benchmark and GlaxoSmithKline, Johnson & Johnson, share best practices with industry-related Merck & Co., and Sanofi. These companies organizations.37 Instead of focusing on the actively promote programs and policies to availability of information, the Index places successfully recruit, retain, and promote value on having diversity in senior levels and diverse employees and are strengthened areas of hiring and promotion. In partnership by inclusive company cultures, transparen- with She Runs It, a non-profit organization cy, and management accountability. designed to encourage and promote women’s role in the advertising industry, the DBP Inclusion Index focuses on achieving standards of excellence in three areas:

36 Working Mother Media, “2020 Best Companies for Dads.” 37 Diversity Best Practices, DBP Inclusion Index 2019. The Biopharmaceutical Industry: Improving Diversity & Inclusion in the Workforce 39

IV. Conclusion

As the United States population and workforce become increasingly diverse, companies across the nation are accelerating their efforts to enhance diversity and inclusion in the workplace and their communities.

From better economic performance, companies are also engaging with their stronger internal teams, and increased industry peers to drive change within the talent attraction, the benefits of improving sector and across society. As Merck & Co. D&I are clear. With an understanding of its CEO Ken Frazier commented earlier this year value to their companies, the broader STEM in an interview with CNBC, “Even though workforce, and society, companies in the we don’t have laws that separate people biopharmaceutical industry are actively on the basis of race anymore, we still have working to improve diversity and inclusion customs, we still have beliefs, we still have across and within their organizations. policies, and we still have practices that lead to inequity…In the long run what’s in our Based on an analysis of surveyed PhRMA enlightened economic self-interest is for all member companies, it is apparent that Americans to feel like they’re participants these industry efforts to comprehensively in our economy.”38 PhRMA members are advance diversity and inclusion are perva- working together to increase D&I in the sive and enduring. Through their support supply chain, to enhance the diversity of for employee-based resource groups and clinical trial populations, and to address training programs, member companies help disparities in health and treatment. In the ensure that D&I is celebrated and empha- wake of the COVID-19 pandemic, companies sized throughout their organizations. By are also making significant investments designating leadership positions, councils, in the places and the people that are and teams to advance D&I, and by tracking disproportionately impacted. Perhaps most efforts and initiatives to assess effective- importantly, members are committing to drive ness and impacts, these companies can systemic change in communities throughout further ensure that activities occur inten- the country through long-term investments tionally and transparently. in areas such as civil rights, STEM education, and increasing economic opportunity. Recognizing that improving diversity and inclusion requires external partners and Taken together, this assessment reflects the increased scale, many biopharmaceutical biopharmaceutical industry’s commitment

38 “Ken Frazier calls for unity amid civil unrest on CNBC,” Squawk Box, June 1, 2020. 40 to improving diversity and inclusion at the system. It means using our power, privilege, individual, company, industry, and societal and resources to advocate for equity and levels. Ultimately, these commitments will justice. And it means continually engaging require that companies and their employ- in open dialogue within and beyond our ees continue to take sustained, consistent, walls to listen and learn so that we might and meaningful action to drive system- find new opportunities to expand our atic change. Taking action, according to impact.”39 As efforts to support D&I grow Genentech CEO Alexander Hardy, “means and as additional companies continue pushing harder to address the impacts developing like-minded initiatives, even of structural racism within our healthcare more significant impacts are expected.

39 Alexander Hardy, “Genentech Stands Against Inequity and Injustice,” June 2, 2020. The Biopharmaceutical Industry: Improving Diversity & Inclusion in the Workforce 41

Appendix Expanding Impact Through External Partnerships

Biopharmaceutical companies are working with a wide array of partners to implement D&I strategies and advance their goals of a more diverse and inclusive industry. These partner- ships generally engage organizations focused on advocacy and civil rights, professional development, networking, and diversifying the STEM pipeline. Specific partners identified in the survey include:

Advocacy and Civil Rights Organizations Below is a selection of Advocacy and Civil Rights organizations the biopharmaceutical industry is partnering with:

• Congressional Black Caucus: Legislative caucus comprised of most African American members of the United States Congress.

• Congressional Hispanic Caucus: Legislative caucuses comprised of Hispanic and Latinx lawmakers.

• Human Rights Campaign: Civil rights organization focused on improving the lives of lesbian, gay, bisexual, transgender, and queer people.

• National Association for the Advancement of Colored People (NAACP): Civil rights organization focused on securing systematic equality, eliminating race-based discrimina- tion, and ensuring the health and well-being of all persons.

• National Gay and Lesbian Chamber of Commerce (NGLCC): Advocacy organization dedicated to expanding economic opportunities and advancements for LGBT people, and the exclusive certifying body for LGBT-owned businesses.

• National Minority Supplier Development Council (NMSDC): Corporate membership organization that connects certified minority-owned businesses to our vast network of corporate members who wish to purchase their products, services, and solutions.

• National Urban League: Advocacy organization which supports African Americans and others in underserved communities achieve their highest true social parity, economic self- reliance, power, and civil rights. The League promotes economic empowerment through education and job training, housing and community development, entrepreneur- ship, health, and quality of life 42 • UNIDOS: Advocacy organization focused on civic engagement, civil rights and immigra- tion, education, workforce and the economy, health, and housing in Latinx communities.

Professional Development and Networking Below is a selection of Professional Development and Networking organizations the bio- pharmaceutical industry is partnering with:

• Association for Women in Science (AWIS): Global network of 100,000 members fo- cused on increasing participation and equity of women in STEM.

• Ascend: Nonprofit professional association that enables its members, corporate partners, and the community to realize the leadership potential of Pan-Asians in global corporations.

• Catalyst: Organization focused on research, tools, and proven solutions to accelerate and advance women into leadership positions and create more inclusive workplaces.

• Disability:IN: Nonprofit organization that provides resources for business disability inclusion worldwide, helping to inspire accessible innovation for all, and to foster cultures of inclusion.

• Executive Leadership Council: Organization focused on encouraging the development of black executives to positively impact business and communities.

• Healthcare Businesswomen’s Association (HBA): Organization focused on furthering the advancement and impact of women in the business of healthcare.

• Hispanic Association for Corporate Responsibility (HACR): An influential advocacy group representing 14 national Hispanic organizations in the United States and Puerto Rico with a focus on advancing the inclusion of Hispanics in corporate America at a greater level.

• Home of the Brave: Campaign that works directly with Veterans Affairs Voluntary Service (VAVS) and corporate partners to provide employees and employers the oppor- tunity to show their gratitude for veterans.

• National Black MBA Association: Nonprofit dedicated to enhancing and developing educational and economic empowerment for African Americans.

• National Sales Network/Black Sales Professionals: Membership organizations that seek to meet the professional and developmental needs of sales and sales management professionals and individuals.

• Paradigm for Parity: a collection of more than 100 companies dedicated to addressing the corporate leadership gender gap through the exchange of lessons learned, best practices, and new approaches to the topic.

• Women of Color in Pharma: A network of individuals in the pharmaceutical industry that offers a nurturing and safe environment to promote to promote personal and profession- al development. 43 • Working Mother: Organization that advocates for and provides information on the more than 17 million moms in the United States who are devoted to their families and commit- ted to their careers.

Encouraging D&I Throughout the STEM Pipeline Below is a selection of organizations that companies are engaging with to support D&I throughout the STEM pipeline:

• Biomedical Science Careers Program: Initiative focused on increasing diversity in all facets of science and medicine, primarily by identifying, informing, supporting, and providing mentoring for high-performing students.

• College Diabetes Network: Organization focused on providing young adults with T1D with peer connections and expert resources to successfully manage the challenging transitions to independence and college.

• Community College Biotech Programs: Efforts at community and technical colleges to build a skilled workforce through real‑world training and essential skill development.

• Hispanics Inspiring Students’ Performance and Achievement (HISPA): Organization that helps inspire Latino students’ academic achievement by mobilizing Latino profes- sionals to volunteer as active roles models in educational programs.

• Hispanic Scholarship Fund: An organization that empowers families with the knowledge and resources needed to complete a higher education, and provider of scholarships and support services to as many students as possible.

• Hispanic-Serving Institutions (HSIs): Institutions of higher education where Hispanic students account for more than 25% of total undergraduate enrollment.

• Historically Black Colleges and Universities (HBCUs): Institutions of higher education in the United States that were established before the Civil Rights Act of 1964 with the intention of primarily serving the Black community.

• InRoads: National organization delivering innovative programs and creative solutions that identify, accelerate, and elevate the development of underrepresented talent throughout their careers, especially through paid internships.

• Posse Foundation: Program that identifies students and veterans for their leadership and academic potential, provides pre-college training programs, services to ensure retention and success, and alumni connections.

• Project Onramp: Initiative to help underserved students start their careers in life scienc- es by matching them with paid summer internships of up to 12 weeks.