Establish a globally uniform hazard and risk communication system for all relevant chemicals of the company in the supply chain, incorporating the principles of prevention

Implementation of REACH:

Register substances produced in quantities ranging from 1-100 metric tons per year (phase 3 of REACH implementation) and register non-phase-in substances

By the end of 2014, we had registered 15% of all phase 3 substances.

Implementation of GHS/CLP:

Classify mixtures and sets according to the CLP regulation

All mixtures have been classified according to CLP since mid-2013.

Implementation of the Global Product Strategy (GPS):

Provide Product Safety Summaries within GPS for all hazardous substances registered under REACH

We have already completed Product Safety Summaries for 17 substances registered under REACH; we are working on nine additional Product Safety Summaries.

Projects for hazard communication:

Update safety data sheets for non-hazardous materials

We have safety data sheets for around 20% of all non-hazardous substances and continually review them. Around 40% of the non-hazardous substances have replacement letters.

Increase the number of safety data sheets prepared to a globally uniform standard

Around 90% of all safety data sheets are based on our Group-wide GHS standard.

Implementation of US GHS/HazCom 2012:

Classify pure substances, mixtures and sets in the United States according to HazCom 2012 criteria

Protect customers and patients from harm by product-related crime

Update our international regulations with a focus on product safety for all relevant products

Monitor the dark figures in certain countries

Support regional activities

Pilot a project to improve product safety in high-risk regions of Africa using software-based solutions

Increase awareness of strategic importance of counterfeit pharmaceuticals

Expand scope of employee training and increase internal reporting on counterfeits

Host a conference of the Pharmaceutical Security Institutes (PSI) with industry representatives

Improve the product sustainability in 10% of the product families of the life science business

Implement the Design for Sustainability program.

Within the Design for Sustainability process we defined several criteria for ensuring product sustainability in each of the following areas: materials, emissions and energy, waste, water, packaging, and usability and innovation. We use these criteria to assess improvement in product sustainability.

By the end of 2014, we had improved sustainability across more than 12% of our product families, which means we've already reached our goal.

Monitor and assess the progress and efficacy of our Access to Health programs.

Create quantitative and qualitative performance indicators for the 4 A's: Availability, Accessibility, Affordability, and Awareness.

Availability: Address unmet needs through the research, development and refinement of health solutions

Expand our R&D portfolio for neglected tropical diseases within the scope of the Global Health Innovation Platform. We have created a three-year plan for our focal areas of developing a pediatric formulation to treat schistosomiasis in preschool-aged children and developing a new anti-malarial drug.

Affordability: Address inability to pay

Through our WIPO Re:Search membership, engage in a collaboration agreement to share our intellectual property and knowledge to catalyze the development of medical products against infectious diseases.

Awareness: Empower health workers, communities and patients

Develop an integrated initiative of our Healthcare and Life Science business sectors to raise awareness and empower people to make informed decisions.

Accessibility: Strengthen supply chains and provide localized solutions

Develop an initiative to reach patients, regardless of their geographic location, and ensure they have access to health solutions.

Harmonize animal welfare Group-wide

Establish Group-wide governance for Corporate Animal Science & Welfare

In 2014, we created a manual for the Animal Science and Welfare Group function that is in effect throughout the company. It describes roles and responsibilities for implementing, adhering to and improving animal welfare, such as the Corporate Animal Science and Welfare network. Nominations have been confirmed and governance has been established.

Develop a Group-wide audit concept for the facilities of contract animal research organizations

The audit concept is described in the Animal Safety & Welfare Manual and is currently being revised and expanded.

Harmonize the high quality of animal facilities at the biopharmaceuticals business

Obtain AAALAC International accreditation for all the laboratory animal facilities of our biopharmaceuticals business

In 2013 and 2014, two laboratory animal facilities in Darmstadt, Germany were successfully reaccredited (performed every three years). Our site in Grafing, Germany also achieved reaccreditation.

Implement a 3R award

Participate in the 3Rs IQ/AAALAC Award Program.

The first award is being presented in 2015.

Further improve warehouse and transport safety

Expand scope of transport safety audits to include contracted service providers

In 2013 and 2014, we conducted 18 EHS audits on transport and warehouse safety, four of which involved third-party warehouses.

Develop additional performance indicators to assess the safety of our warehouses and transport of our products

We have developed transport and warehouse safety indicators, which indicate the safety rating of an inspected subsidiary relative to the Group average and third-party warehouses.

Implement improvement programs in countries and regions selected based on risks specific to the products being handled

Implement a process to further improve our management approach to transport and warehouse safety

We have instituted an analysis and evaluation process and, in response, have implemented the first set of measures.

In addition to the results of local audits and inspections, we will be including customer complaints in our evaluation.

Ensure our suppliers adhere to ethical, social, environmental, and compliance standards (part of our "risk mitigation" strategic procurement objective)

Conduct 20 CR audits on high-risk suppliers in 2014

In 2014, we conducted 24 audits on high-risk suppliers.

Systematically collect self-reported supplier information

We have set up an IT system and received the first set of self-reported supplier information.

This system has been discontinued because we are instead integrating the TfS database into our supplier management system.

Join the Together for Sustainability (TfS) chemical industry initiative

Conduct workshops to prepare the company to integrate into the TfS program

We held workshops to prepare employees and joined the TfS Initiative in mid-2014.

Systematically collect self-reported supplier information in line with the TfS methodology

We are implementing the TfS methodology for supplier assessments and audits, as well as for tracking them.

Establish a CR standard operating procedure

Increase the percentage of management positions (Global Grade 14+) held by women to at least 25%-30%

Increase the percentage of management positions held by women through numerous initiatives that move women into those positions

Institute communication measures and utilize HR processes such as Talent Management
26% of management positions were held by women in 2014, which means that we have already reached the bottom range of our target. We will continue to pursue this goal in order to further increase the percentage of management positions held by women.

Talent & Succession Management: Fill at least 2/3 of positions ranked Global Grade 16+ with internal candidates

Use the Talent & Succession Management Process to identify suitable employees with management potential and define a process to systematically develop them

In 2013, we introduced the Talent & Succession Management Process in order to systematically foster and develop talent.

In 2014, 74% of our vacant management positions were filled internally.

Have least 50% of managers rated Global Grade 14+ take part in a management program

Expand the geographical range of the programs to reach a broader target group

Have senior management act as the official program sponsors

Build a talent pool that reflects the demo­graphic structure of the company

Identify talent, inform managers on current demographics (e.g. age, nationality, gender)

Competency-based interviews with 20% of the talent

Nominate suitable talent within the scope of the Talent & Succession Management program

Have 80% of all employees using the HR Suite IT system for their annual Performance Management Process assessment

Expand the HR Suite user group to new target groups

Reduce occupational accidents throughout the company (lost time injury rate = 2.5)

Implement the BeSafe! program; hold EHS forums on safety behavior change

Through systematic accident prevention measures (such as training and campaigns to strengthen our corporate safety culture), we attained an LTIR of 2.2 in 2013 and an LTIR of 1.8 in 2014. We are working to lastingly stabilize our LTIR.

Audit and implement environmental management systems at acquired sites

Certify environmental management systems at further acquired sites

Perform gap analysis on the life science business acquisitions (e.g. Heipha and Biochrom), along with the Allergopharma production site in Reinbek

We conducted a gap analysis on Biochrom and Allergopharma production sites.

Due to production issues, the implementation of ISO 14001 has been delayed for Heipha.

Integrate AZ Electronic Materials production sites

Eight out of nine production sites of AZ Electronic Materials, which was acquired in 2014, have been incorporated into the group certificate.

Implement the OHSAS 18001 occupational health and safety management system for all Performance Materials production sites

Reduce direct and indirect greenhouse gas emissions (Scope 1 and 2) of the company by 20% relative to the 2006 baseline

Systematically examine the energy consumption at our individual sites

We continued to systematically examine ways to save energy at our production sites. For instance, energy audits were conducted on the Aubonne and Vevey sites in Switzerland.

Identify and implement ways to save energy

Through the approximately 300 EDISON projects that have been initiated since 2012, we aim to annually save around 60,000 metric tons of CO₂ in the medium term. Around two-thirds of these projects have already been launched, or are currently being implemented.

Reduce process-related emissions

We have made significant progress in reducing the life science business' process-related emissions. The average process emissions relative to production volume at our Jaffrey, New Hampshire (USA) facility has decreased by around two-thirds. At this site, we have witnessed a 30% absolute reduction in process emissions in 2014 versus 2013, while production volumes have continued to increase.

Implement sustainable measures to increase energy efficiency and reduce greenhouse gas emissions

We are moving forward with our EDISON program, implementing new projects to increase energy efficiency and reduce greenhouse gas emissions. In 2013 and 2014, we introduced two new guidelines on Group-wide energy management and refrigerants emissions. Several sites were certified according to ISO 50001, accompanied by the respective training activities.

Reduce the life science business' greenhouse gas emissions by 10% by 2015 (2006 baseline)

The life science business has reduced greenhouse gas emissions by 13% relative to the 2006 baseline.

Reduce the life science business' waste output by 10% relative to the baseline 2006)

Introduce measures to minimize waste and recycle materials, solvents, and other waste byproducts.

Between 2006 and 2014, the life science business lowered its waste output by 15%.

The life science business has identified and implemented opportunities to distill and reuse solvents in the manufacturing process. At the Bedford, Massachusetts (USA) facility, methanol that cannot be reused in the process after multiple distillations is used as a feed chemical for a local municipal wastewater treatment facility. In 2014, 145 metric tons of methanol were reused externally.

Increases in production yields reduced the amount of products scrapped during manufacturing.

Perform waste audits to identify ways to reduce waste or increase recycling efficiency

In 2014, waste audits were performed on the life science business' facilities in Molsheim, France, and Kankakee, Illinois (USA).

Reduce the life science business' water use by 10% relative to the 2006 baseline

Implement water reuse and reduction initiatives

Despite significant increases in production volumes, between 2006 and 2014, the life science business reduced water consumption by 2%.

In 2014, we performed five water audits at the life science business facilities. Our Molsheim, France facility identified viable projects that will be investigated further in 2015.

Eliminate schistosomiasis in African school children

Provide tablets containing praziquantel free of charge to treat school children in Africa

Since 2007, more than 50 million patients have been treated, primarily school-aged children.

Incrementally increase annual tablet donation by a factor of ten, to up to 250 million

In 2014, we produced around 75 million tablets, of which more than 72 million were supplied to 20 African countries by the year's end, a collaborative effort with the World Health Organization.

Optimize the praziquantel formulation

We have finished developing the formulation. The dossier has to be submitted to the regulatory authorities for marketing authorization.

Research a new praziquantel formulation for children under 6 years old.

The Phase 1 clinical trial was conducted in South Africa.

Fight counterfeit medicines by providing and enhancing the GPHF Minilab^TM

Develop new test methods for five active ingredients and expand manuals to describe the new testing methods

Develop five new testing methods and update the manuals

Develop new test methods for five active ingredients and expand manuals to describe the new testing methods

Conduct 4 training seminars on the use of the GPHF Minilab^TM; sell 50 Minilabs

Four training seminars on the use of the GPHF Minilab^TM have been conducted, and 37 Minilabs have been sold.

Conduct 3 training seminars on the use of the GPHF Minilab^TM; sell 25 Minilabs