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Novartis in Society ESG Report 2019 2 | Novartis in Society Novartis in Society ESG Report 2019 2 | Novartis in Society Photo A worker at Zipline’s distribution center in Omenako, Ghana, prepares a Contents medical order for drone delivery. Novartis has partnered with Zipline, a US-based automated logistics company, to help deliver 2019 highlights 3 vital medicines to remote areas. Cover photo Patients at Kumasi General Who we are 4 Hospital in Ghana, where newborns are screened for sickle cell disease. Only about What we do 6 4% of babies in Ghana are tested for this debilitating genetic blood disorder. Message from the CEO 8 Global Health & Corporate Responsibility at Novartis 9 Strategic areas 13 Holding ourselves to the highest ethical standards 13 Being part of the solution on pricing and access 20 Addressing global health challenges 32 Being a responsible citizen 39 About this report 50 Performance indicators 2019 51 Novartis GRI Content Index 55 Appendix: corporate responsibility material topic boundaries 59 Appendix: corporate responsibility materiality assessment issue cluster and topic definitions 61 Appendix: external initiatives and membership of associations 63 Appendix: supplier spend 2019 64 Appendix: the responsible procurement (RP) risk indicator tool 64 Appendix: measuring and valuing our impact 65 Independent Assurance Report on the 2019 Novartis in Society ESG reporting 66 2019 HIGHLIGHTS Novartis in Society | 3 2019 highlights ETHICAL STANDARDS 99/100 500+ 135 SCORE ASSOCIATES HIGH-LEVEL AUDITS achieved by Novartis for clinical trial volunteered to be part of the performed on 100% of suppliers transparency in a recent analysis networkthat will create the with active follow-up published by BMJ NovartisCode of Ethics ACCESS TO HEALTHCARE 16 m 10 m+ 300 000+ PATIENTS PEOPLE PATIENTS reached through access programs reached through training reached with over 90 local brands and health education programs for some of our most advanced medicines GLOBAL HEALTH 900 m+ 20 000+ 7 m+ TREATMENT COURSES TREATMENTS PATIENTS of Coartem delivered of hydroxyurea delivered to reached with free multidrug to date in malaria-endemic Ghana for the treatment of therapy for leprosy since 2000 countries people withsickle cell disease CORPORATE CITIZENSHIP 80 000 44 % 100 000 TONNES REDUCTION WOMEN HOURS of carbon emissions in management devoted to learning during (Scope 1 and 2) vs. 2016 Novartis Learning Month 4 | Novartis Annualin Society Review 2019 Who we we are are Our purpose We reimagine medicine to improve and extend people’s lives. We use innovative science and technology to address some of society’s most challenging healthcare issues. We discover and develop breakthrough treatments and find new ways to deliver them to as many people as possible. We also aim to reward those who invest their money, time and ideas in our company. Our company INNOVATIVE MEDICINES NOVARTIS TECHNICAL OPERATIONS (NTO) The Innovative Medicines Division has two business units: is responsible for making our innovative medicines, devices Novartis Oncology and Sandoz products and Novartis Oncology focuses on delivering them to our patented treatments for a variety customers across the world. of cancers and rare diseases. dicines/Pharm Me ace ive ut NOVARTIS BUSINESS Novartis Pharmaceuticals at ica ov ls SERVICES (NBS) Novartis Pharmaceuticals nn Bu I si consolidates support focuses on patented treat - s ne n s io s services across our organi- ments in multiple disease areas t c s to enhance health outcomes for n e zation, helping drive effi- u r f v i ciency, simplification, stan- patients and offer solutions to c e t e dardization and quality. healthcare providers. a s r o ( N p r B CORPORATE FUNCTIONS o SANDOZ S C ) support the enterprise in Sandoz offers patients specific areas of expertise, and healthcare profes sionals including finance, human y high-quality, affordable gy g resources, legal and commu- lo generics and biosimilars. o S ol nications. a co n nc d On o / M /sO z a ) es n O ine ufa T cin cturing (N dici eed e M M atitviev InInnoovav RESEARCH AND DEVELOPMENT (R&D) The Novartis Institutes The Global Drug for BioMedical Research Development (GDD) (NIBR) is the innovation organization oversees engine of Novartis. NIBR the development of new focuses on discovering medicines discovered by new drugs that can change our researchers and the practice of medicine. partners. 4 | Novartis Annual Review 2019 WHOWhO weWE AareRE Novartis AnnualNovartis Review in Society 2019 | 5 Who we are Our purpose We reimagine medicine to improve and extend people’s lives. We use innovative science and technology to address some of society’s most challenging healthcare issues. We discover and Our culture Our values develop breakthrough treatments and find new ways to deliver Curious Innovation Performance them to as many people as possible. We also aim to reward Inspired Quality Courage those who invest their money, time and ideas in our company. Unbossed Collaboration Integrity Our company Our people INNOVATIVE MEDICINES NOVARTIS TECHNICAL The greatest strength of Novartis is our people, whose diversity, OPERATIONS (NTO) The Innovative Medicines energy and creativity are crucial to our success. Division has two business units: is responsible for making our innovative medicines, devices Novartis Oncology and Sandoz products and Novartis Oncology focuses on delivering them to our patented treatments for a variety customers across the world. of cancers and rare diseases. dicines/Pharm Me ace ive ut NOVARTIS BUSINESS Novartis Pharmaceuticals at ic v al SERVICES (NBS) no s Novartis Pharmaceuticals n Bu I si consolidates support focuses on patented treat - s ne n s io s services across our organi- ments in multiple disease areas t c s to enhance health outcomes for n e zation, helping drive effi- u r f v i ciency, simplification, stan- patients and offer solutions to c e t e dardization and quality. healthcare providers. a s r o ( N p r B CORPORATE FUNCTIONS o SANDOZ S C ) support the enterprise in Sandoz offers patients specific areas of expertise, and healthcare profes sionals including finance, human y high-quality, affordable gy g resources, legal and commu- lo generics and biosimilars. o S ol nications. a co n nc d On o / ANNUAL TRAINING WOMEN M /sO z a ) es HEADCOUNT NATIONALITIES HOURS PER EMPLOYEE IN MANAGEMENT n O ine ufa T cin cturing (N dici eed e M M atitviev InInnoovav 108 775 149 35.8 44 % RESEARCH AND DEVELOPMENT (R&D) The Novartis Institutes The Global Drug for BioMedical Research Development (GDD) (NIBR) is the innovation organization oversees engine of Novartis. NIBR the development of new focuses on discovering medicines discovered by new drugs that can change our researchers and the practice of medicine. partners. 6 | Novartis Annualin Society Review 2019 R&D R&D What we we do do n n io o t ti u u ib b r i t r s t i s Our business modeli D D RESOURCES WE USE C g C o n o i talENtED FINaNCIalm INtEllECtUal NatURal INFRr astRUCtURE m u m t PEOPlE CaPItal CaPItal g CaPItal m tEChNOlOGY aND FaCIlItIEs RElatIONshIPs e c in e a We depend on the We use cash,r c equity We use expertise r We consume energy,r We use artificial f We own or lease We work with doctors ia tu c u skills and creativity and debt to meetl and data to develc- water and other ia intelligence, gene an research laborato- to get effective treat- iz fa liz ati u at M of our employees our financial com- onop and marketMan our resources to manu- ieditingon and other ries, manufacturing ments to patients. We to discover, develop mitments, make products. We hold facture our products cutting-edge tech- sites, offices and partner with external and produce new investments and patents and trade- and operate our nologies to spur distribution facilities organizations to ac- medicines, and pay dividends. marks that protect business. innovation and around the world. celerate drug discov- deliver them to the long-term invest- increase efficiency. ery, develop business patients. ments required for oppor tunities and ex- our business. pand patient access. R R&D &D on ti R u & n n ib D o io tr i t s t u i u b ib D i r r t t s s i i D D WHAT WE DO C o g g C C m n n o i o i m r r m m u g u t e t m r in m c c r c e a i u e fa r f a t rc u c u li c i n THE VALUE WE CREATEia n za fa a a li a t u liz M za M io an at tion n M ion IMPROVED hEalth aND aCCEss tO MEDICINE JOBs shaREhOlDER REtURNs taXEs PaID WEll-BEING aND hEalthCaRE 1.3 m 22.3 % 1.9 bn 67 bn 799 m Indirect, induced (2018) 2019 total shareholder return (USD) Social impact (USD, 2018), Patients reached with (USD), including Alcon spin-off based on estimated value of Novartis medicines health benefits to patients 108 775 6.6 bn 10 m Own operations Total dividends paid (USD) People reached through training and health education programs Our products Our products address most major disease areas and are sold in approximately 155 countries around the world. Our manufacturing facilities produced 72 billion treatments in 2019. We develop and produce innovative medicines to We also offer about 1 000 generic and bio- address patient needs in disease areas where our similar medicines covering a broad range of experience and knowledge have the potential to therapeutic areas. They can bring substantial produce transformative treatments. savings to patients and healthcare systems, and help improve access to healthcare.
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