Sustainability at AstraZeneca Access to healthcare Environmental protection Ethics and transparency Ethics and transparency Our approach Compliance Supply chain management Patient safety and product security Bioethics Antimicrobial resistance We want to be valued for the medicines we provide Ethics and and trusted for the way we work. That means leading our industry in demonstrating ethical business practices and high levels of integrity in everything transparency we do. It is why human rights, safety and health, environmental protection and business ethics are core to AstraZeneca’s approach to sustainability. Compliance Managing our Product security We emphasise to all our staff the supply chain The illegal trade in medicines is importance of compliance with our a public health risk and our aim is to AstraZeneca Values, Code of Conduct We extend our high ethical standards disrupt this activity by working with and supporting requirements. We to our whole supply chain and regularly partners around the globe. empower our people to ask questions check and audit that our suppliers when they are unclear or make a report reflect our Values. when they have a concern. 100% 8,977 $16.5 million of active employees trained on supplier assessments carried worth of AstraZeneca counterfeit the Code of Conduct out in 2016 and illegal medicines seized Animals Antimicrobial in science resistance We apply a single, consistent Global Although we no longer develop small Standard for animal welfare and are molecule antimicrobials in-house, we’re committed to reducing, refining and standing with our peers to tackle this replacing animals in our work. global issue. 100% Signed of staff working with animals are the Davos Declaration on appropriately trained in animal Combating Antimicrobial care, use and welfare Resistance with over 100 other companies Sustainability Update 2016 | 1 Sustainability at AstraZeneca Access to healthcare Environmental protection Ethics and transparency Ethics and transparency Our approach Compliance Supply chain management Patient safety and product security Bioethics Antimicrobial resistance Our approach We have worked hard to position ourselves as a global leader in the pharmaceutical industry. As a leader, we have a responsibility to hold ourselves to high ethical standards and to demonstrate ethical business practices. We strive for high levels of integrity in everything we do, whether it’s our approach to bioethics, including the use of animals in science, the way we treat the participants in our clinical trials, our approach to human rights or the scrutiny of our supply chain to ensure our suppliers meet our high standards. What we have achieved Goals Target Progress highlights progress All active employees to be trained 100% of active employees trained on our Code of Conduct by 2016 on the Code of Conduct in 2016 Key Achieved a 100% score for Code of Conduct from the Dow Jones Target exceeded Sustainability Index Full target achieved Communicate clear policies Updated our annual Code of Ongoing progress to employees by 2016 Conduct training to provide Target not achieved, greater clarity and simplicity for some progress the business as well as improved accessibility via mobile devices since 2016 Ensure employees can raise concerns and 320 reports of alleged compliance that they are properly addressed by 2016 breaches or other ethical concerns made through the AZethics Helpline in 2016 Meet high ethical standards across all Conducted 66 high-risk supplier our procurement activities and decisions audits in 2016 worldwide by 2016 Collate a suite of ‘Culture of Care’ pledges Two winners of a newly from all of our R&D sites, demonstrating introduced ‘Culture of Care’ our daily commitment to high standards of award recognising the day-to- animal welfare by 2016 day commitment to excellence in animal care and welfare, including Continue to promote scientific excellence in one attracting the attention animal care and use through a programme of the National Centre for the of global roundtable workshops by 2016 Replacement, Refinement and Reduction of Animals in Research (NC3Rs) for further development as a project initiative In 2016, we prepared to meet the Redacted Clinical Report Package of the European Medicines Agency (EMA) Publication of Clinical Data Policy. The policy is designed to further improve transparency and access to research information Sustainability Update 2016 | 2 Sustainability at AstraZeneca Access to healthcare Environmental protection Ethics and transparency Ethics and transparency Our approach Compliance Supply chain management Patient safety and product security Bioethics Antimicrobial resistance Compliance We expect everyone at AstraZeneca to observe the highest an inquiry is made or a concern is raised, the standards of integrity and honesty, and to act with care, details of the report are sent to AstraZeneca for appropriate follow-up and resolution. diligence and fairness in all they do. We are committed to delivering consistently high standards of sales and marketing We take all alleged compliance breaches and concerns seriously, and investigate them and practices worldwide, and we work with only those third parties report the outcome of such investigations to who embrace high standards of ethical behaviour that are the Audit Committee, as appropriate. Internal consistent with our own. investigations are undertaken by staff from our Global Compliance, Human Resources and/or Building a culture of compliance course on the Code of Conduct and Legal functions, to preserve the independent Our Global Compliance function exists to ethical business practices. Our training is nature of the review. When necessary, external drive and embed a culture of ethics and designed to be straightforward, to promote advisers are engaged to conduct and/or advise integrity throughout our organisation. We employee understanding. on investigations. require all our employees to take personal We are committed to the highest standards When allegations of misconduct by employees accountability for their actions and to of ethical conduct in all of our operations, or third parties are confirmed after full demonstrate individual behaviour that is in line including transparency in how we partner investigation, business stakeholders take with our Values and principles. That means with physicians and medical institutions. In appropriate disciplinary or remediation actions, engaging them and supporting them to ensure the US, our external transparency reporting including termination of employment or they understand and follow our requirements meets the requirements of the Physician termination of a third-party engagement, and feel comfortable asking questions or Payments Sunshine Act (Open Payments), as when necessary. They also implement reporting concerns. well as relevant state transparency laws. In the necessary enhancements within the We focus our efforts on: Europe, AstraZeneca’s reporting meets the business to help prevent future misconduct, requirements of the European Federation of including retraining of relevant employees > Communicating clear policies to employees Pharmaceutical Industries and Associations and strengthening of local procedures and > Improving compliance behaviours through (EFPIA) Disclosure Code, as well as applicable controls. Similarly, as part of continuing to effective advice, training and support local transparency requirements. do business with the third-party, they take the necessary steps to help prevent future > Monitoring compliance In 2016, AstraZeneca took steps to strengthen misconduct, including re-emphasising our > Ensuring employees and the public can the capabilities of our Global Compliance expectations of ethical behaviour to the third raise concerns and that they are properly function, including the development of the party’s management, providing retraining to addressed Global Compliance Academy, a social learning relevant third-party employees, and negotiating platform where our Compliance professionals > Fair and objective investigations of possible improved processes and controls within the can interact to share learnings and best policy breaches third party’s business. practices and build their skills through tailor- > In close collaboration with Internal Audit made, on-demand training. In 2016, 320 reports of alleged compliance Services, providing stakeholders with breaches or other ethical concerns were effective assurance and reporting on key Reporting breaches and concerns made through the Helpline, including reports issues, including risk management relating Our Code of Conduct requires employees to made by any anonymous route that could be to third parties working on our behalf, as well report any concern they may have about a considered whistle-blowing; in 2015 there as strengthening of compliance controls to possible breach of the Code or its supporting were 326 reports. The majority of cases address identified gaps. requirements. Employees are advised to come to our attention through management Our Code of Conduct is at the core of our consult with their line manager or their Human and self-reporting, which can be seen as an compliance programme, and compliance with Resources, Legal or Compliance functions. indication that employees are comfortable in the Code is mandatory for all employees. The The Code provides additional contact raising their concerns with line managers, local Code has been translated into 40 languages channels through our Helpline, which includes