Sustainability Report 2019 Sustainability approach Access to healthcare Environmental protection Ethics and transparency Notices AstraZeneca Sustainability Report 2019 2 About this report Table of contents Sustainability approach 2 Sustainability overview 3 Our approach 4 2019 performance review 5 This report Follow us About us 6 This is our fifth annual sustainability report, LinkedIn Sustainability governance 7 and it describes our progress and challenges Global development contribution 9 from 1 January 2019 to 31 December 2019. Facebook The content of this report is based on those Stakeholder engagement 12 sustainability issues deemed material through Twitter comprehensive stakeholder engagement and Access to healthcare 14 analysis. All our business operations worldwide Glassdoor Access to healthcare overview 15 are in scope regardless of their function, unless otherwise stated. Disease prevention and treatment 16 Instagram Responsible research and development 19 Online resources Environment’s impact on health 22 • AstraZeneca Sustainability webpages: cover Assurance Investments in health systems 25 additional topics of interest to our stakeholders. We seek external review of our performance Affordability 27 to validate that we use the same rigour and • AstraZeneca Sustainability Data Summary: accuracy as we do with regulated reporting. Environmental protection 29 provides performance measures and targets Share your ideas Bureau Veritas has provided independent external with at least three years of data where available. and feedback at Environmental protection overview 30 assurance to a limited level for the sustainability sustainability@ • Infographics: show our processes and practices. key performance indicators shown in the astrazeneca.com Product environmental stewardship 32 Sustainability Data Summary as described in the Greenhouse gas reduction 34 • Policies and company standards: state our sustainability letter of assurance. Assurance was position and guidance on key subjects. Pharmaceuticals in the environment 37 also provided for select sustainability information Water stewardship 39 • 2019 Annual Report and Form 20-F: includes in the 2019 Annual Report. Assurance is in how sustainability is integrated across our accordance with the International Standard on Waste management 42 business model and into risk management. Assurance Engagements 3000 (ISAE 3000), and ISAE 3410 Assurance Engagements on Ethics and transparency 44 • Website: contains expanded discussions on Greenhouse Gas Statements. emerging topics and material focus areas. Ethics and transparency overview 45 Ethical business culture 46 Ethical business culture – bioethics 48 Inclusion and diversity 50 Antibody–Drug Conjugates (ADCs) Talent and workforce evolution 52 ADCs are among the most exciting technologies for the treatment of cancer. Workforce wellbeing and safety 54 AstraZeneca is developing novel ADC Responsible supply chain 57 targets that include therapy-resistant tumours and Human rights 60 cancer stem cells. We are building a library of payloads, and using our antibody engineering expertise for site-specific conjugation and next-generation ADCs. Notices 63 Sustainability approach Access to healthcare Environmental protection Ethics and transparency Notices AstraZeneca Sustainability Report 2019 3 We lead Connection to human with health health Removing Supporting Fostering a culture of Work towards Demonstrate Create positive a future where global leadership societal impact barriers and a healthy doing the right thing all people to proactively and promote creating solutions environment helps across our worldwide have access manage our ethical behaviour for healthcare prevent the onset operations, including to sustainable environmental in all markets are essential for and progression our supply chain, At AstraZeneca, health is our healthcare impact across all across our global health of certain diseases promotes health solutions for our activities and value chain and improve and wellbeing business and our contribution products life changing health outcomes to society. How we operate treatment and supports sustainable ecosystems prevention for healthcare that benefit Our people and our planet through ambitions Ethics and science-based innovation. for 2025 transparency Equality and Our aspiration is for the future to be healthy prosperity for all, • Ethical and for us to be an active participant in a healthy Access to fosters healthy business society, planet and business. Our pioneering healthcare societies culture medicines touch the lives of millions of people, • Inclusion so it is a business imperative that we are partners Health is at the and diversity and advocates for solutions to global health. heart of our • Talent and At the heart of our sustainability approach is access Sustainability workforce to healthcare and its connection to environmental business at AstraZeneca evolution protection and ethics and transparency. • Workforce Our wellbeing material and safety • Responsible issues supply chain United • Human rights Nations Sustainable Development • Product environmental Goals (SDGs) stewardship • Disease • Greenhouse prevention gas reduction Environmental and treatment • Pharmaceuticals protection • Responsible in the R&D environment The health of the • Environment’s • Water impact on health planet impacts stewardship • Investments in • Waste all life health systems management • Affordability Sustainability approach Access to healthcare Environmental protection Ethics and transparency Notices Our approach AstraZeneca Sustainability Report 2019 4 Healthy Healthy people planet Why we Sustainability at AstraZeneca is Sustainability integration care about using our capabilities to Partnership, collaboration and transparency start with our own workforce. Within our make the most meaningful impact business we have practices to integrate sustainable thinking into processes. where society needs it – health. Operating model We work hard to develop medicines to save lives, Sustainability is a core part of our company strategy. Being a Great Place foster inclusive workplaces and catalyse positive to Work is one of our three strategic priorities for the company. Its success impact throughout our operations and supply includes delivering sustainability targets for our material focus areas. chain. We believe there is a strong connection These targets are a part of the company’s global scorecard that sets the Healthy between the health of our patients, our business, course for business and are the responsibility of every employee to achieve. business our workforce, our communities and the planet, Workforce training and each of these impact one another. Newly hired employees take an orientation module that includes an In our complex world, a siloed approach to introduction to our sustainability approach. We incorporate sustainability sustainability is no longer an option. We see education into our leadership and management development programmes. partnerships and transparency as enablers of Our leaders are also engaged with sustainability at key strategic events, a sustainable future. We seek to engage with like our annual Senior Leaders Meeting. stakeholders across the healthcare network and with problem solvers outside of healthcare. Our Financial reporting approach includes becoming more transparent We incorporate sustainability-related occurrences into publicly released in our material areas to support responsible, quarterly results for investors. We have a dedicated Environmental, Social and ethical management across the value chain, Governance (ESG) investor relations representative and engaged in investor performance measurement, and knowledge dialogue events throughout 2019. sharing for our sector. Risk management Our approach to sustainability has three We recognise the connection between enterprise risk management and interdependent and cooperative priorities: sustainability management. In 2018, enterprise risk management informed the sustainability materiality assessment and we used the results to better align our risk and sustainability classifications. The Global Sustainability function participates in quarterly company risk reviews. Access to Environmental Ethics and Code of Ethics healthcare protection transparency Our Code of Ethics is based on our company Values. It provides clear guidance and direction to employees in carrying out their daily work. Annual training on the Code is mandatory for all employees. Sustainability is featured as one of four high-level Global Policies in the Code of Ethics. For updates on our progress for metrics, see the Sustainability Data Summary. Local sustainability initiatives are displayed at some of our campuses Sustainability approach Access to healthcare Environmental protection Ethics and transparency Notices AstraZeneca Sustainability Report 2019 5 2019 Sustainability strategy Lead with health to performance support healthy people, a prospering planet and review an ethical business culture 9 1 of 3 45+ members govern sustainability on our Sustainability Sustainability is a component of performance metrics Access to healthcare Advisory Board – composed of external experts and Great Place to Work, one of the measured quarterly in internal Senior Executive Team members three company strategic priorities the company scorecard Work towards a future where all people have access to sustainable healthcare solutions for life-changing treatment and prevention 81,000+ 19.8m+ 9.7m+ UNGC healthcare workers