Our corporate responsibility goals set the course to be followed for the next several years. This section presents these objectives and reports on the progress we've made towards achieving them.
Products
Product safety
Goal: Establish a globally uniform hazard and risk communication standard for all our relevant chemical products in the supply chain based on the precautionary principle
Measure(s): Implementation of REACH: Register substances produced in quantities of 1-100 metric tons per year (phase 3 of REACH implementation) and register non-phase-in substances
By when: Mid-2018
Status description for 2015: We registered another 30 phase-3 substances in 2015.
Status: In progress
Measure(s): Implementation of the Global Product Strategy (GPS): Issue Product Safety Summaries for all hazardous substances registered under REACH
By when: End of 2020
Status description for 2015: Another three Product Safety Summaries were issued in 2015.
Status: In progress
Measure(s): Projects for hazard communication: Update safety data sheets for non-hazardous chemical products
By when: End of 2020
Status description for 2015: 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.
Status: In progress
Measure(s): Increase the number of safety data sheets in alignment with a globally uniform standard
By when: End of 2020
Status description for 2015: Software-based EHS (Environment, Health, and Safety) management system roll-outs in China, Japan, South Korea, and Taiwan paved the way to globally uniform standards in hazard communication.
Status: In progress
Measure(s): Implementation of US GHS/HazCom 2012: Classify pure substances, mixtures and sets in the United States according to HazCom 2012 criteria
By when: Mid-2015
Status description for 2015: All pure substances, mixtures and sets were classified and labeled in alignment with HazCom 2012 by the deadline.
Status: Goal achieved
Product-related crime
Goal: Protect customers and patients from harm by product-related crime
Measure(s): Continue to develop Group-wide product security guidelines for all relevant products
By when: End of 2016
Status description for 2015: The following internal guidelines were created in 2015 and adopted in January 2016:
- MACON Team Charter: Expands and professionalizes the company's Anti-Counterfeiting Operational Network (MACON) by involving local experts in securing evidence, performing analyses, etc.
- Product security standard for our Healthcare business sector
A product investigation standard will be created to enhance expertise and processes at our subsidiaries with regard to handling product crime.
Since October 2015, we have been consolidating our Group-wide measures in order to harness synergies between our business sectors, making our battle against product-related crime even more effective.
Status: In progress
Measure(s): Monitor the number of unreported cases of counterfeit medicines in select countries
By when: End of 2016
Status description for 2015: In one of our markets, we have initiated a project to gather intelligence on cases of counterfeit medicines that are not officially reported. Based on the results, we are developing a method of monitoring these dark figures and applying it to other countries.
The “Dark Web” is constantly monitored for signs of our products.
Status: In progress
Measure(s): Support regional efforts against product-related crime
By when: End of 2016
Status description for 2015: In 2015, we supported investigations in India, China, the United States, and Mexico.
Status: In progress
Measure(s): Pilot a project to improve product safety in high-risk regions of Africa using software-based solutions
By when: End of 2016
Status description for 2015: We have developed an app called Check-My-Meds™, which was piloted in the United States in 2015. It is scheduled for launch in Africa in 2016.
Status: In progress
Measure(s): Conduct a risk assessment in our Healthcare business sector to identify strategically and commercially relevant data that have a greater need of protection
By when: End of 2016
Status: New goal
Measure(s): Increase internet searches to hunt down trademark infringement and counterfeit products
By when: End of 2016
Status: New goal
Goal: Increase internal awareness of strategic relevance of counterfeit pharmaceuticals
Measure(s): Expand scope of employee training and increase internal reporting
By when: End of 2015
Status description for 2015: We conducted three workshops at critical sites. Furthermore, during a meeting of the Global Security Network in Darmstadt, Germany, product crime officers gathered together to share their experience and best practices.
The reporting system for product-related crime was enhanced in order to improve the reporting process and raise awareness of the importance of reporting.
Status: Goal achieved
Measure(s): Host a conference of the Pharmaceutical Security Institute (PSI) with industry representatives
By when: End of 2015
Status description for 2015: We hosted a conference of the Pharmaceutical Security Institute (PSI).
Status: Goal achieved
Measure(s): Expand MACON network to include representatives from major sites
By when: End of 2016
Status: New goal
Measure(s): Conduct awareness workshops for employees
By when: End of 2016
Status: New goal
Access to health
Goal: Monitor and assess the progress and efficacy of our Access to Health programs.
Measure(s): Develop quantitative and qualitative performance indicators for the 4 A's: Availability, Accessibility, Affordability, and Awareness
By when: End of 2016
Status description for 2015: In 2015, we began defining performance indicators that are used to monitor and assess the progress as well as efficacy of our Access to Health programs.
Status: In progress
Goal: Availability: Address unmet needs through the research, development and refinement of health solutions
Measure(s): Expand our R&D portfolio for infectious diseases within the scope of the Global Health Innovation Platform. We have created a three-year business plan for implementing this new entity within Global Health R&D, with focal areas being the development of a pediatric formulation to treat schistosomiasis in preschool-aged children, as well as the development of a new anti-malarial drug.
By when: End of 2017
Status description for 2015: Schistosomiasis: Successful completion of a Phase I trial with healthy subjects in South Africa, as well as a taste study with children in Tanzania. We are also working to identify new active ingredients.
Malaria: In March 2015, we obtained the rights to a promising new antimalarial compound that is in the preclinical phase and that we will continue to develop. In addition, our Healthcare and Life Science business sectors are currently developing a kit for malaria based on the Muse® Auto CD4/CD4% analysis system; the device will assess the presence and type of malaria parasite and potentially measure co-infection with HIV.
Status: In progress
Goal: Affordability: Address inability to pay
Measure(s): Through our WIPO Re:Search membership, engage in a partnership to share our intellectual property and knowledge to catalyze the development of medical products against infectious diseases
By when: End of 2016
Status description for 2015: In 2015 we finalized a collaboration agreement with the University of Buea in Cameroon that aims to repurpose compounds from our library to develop a treatment for onchocerciasis, also known as river blindness.
Status: Goal achieved
Goal: Awareness: Empower health workers, communities and patients
Measure(s): Develop an integrated initiative of our Healthcare and Life Science business sectors to raise awareness and empower people to make informed decisions
By when: End of 2016
Status description for 2015: In 2015, we were in the initial stages of developing a proposal that aims to take a holistic approach to tackling access to health challenges.
Status: In progress
Goal: Accessibility: Strengthen supply chains and provide localized solutions
Measure(s): Develop an initiative to reach patients, regardless of their geographic location, and ensure they have access to health solutions.
By when: End of 2016
Status description for 2015: In 2015, we started engaging a diverse array of stakeholders, including pharmaceutical companies, international organizations, governments, academics, and NGOs, among other private and public stakeholders, to address supply chain and delivery issues in developing countries.
Status: In progress
Animal research
Goal: Harmonize animal welfare Group-wide
Measure(s): Develop a Group-wide audit concept for the facilities of contract animal research organizations
By when: End of 2015
Status description for 2015: Our audit concept is described in the Animal Safety & Welfare Manual. The processes specified were implemented in 2015.
Status: Goal achieved
Goal: Harmonize the high quality of animal facilities used by our Biopharma business
Measure(s): Obtain AAALAC International accreditation for all Biopharma laboratory animal facilities
By when: End of 2015
Status description for 2015: In 2015, four of our five Biopharma animal facilities were (re-)accredited to AAALAC standards, while the fifth one has applied for accreditation.
Status: Goal not Achieved
Goal: Launch of a 3R award
Measure(s): Participate in the 3Rs IQ/AAALAC Award Program
By when: End of 2015
Status description for 2015: Instead of initiating our own internal award, we decided to support the world-renowned 3Rs IQ/AAALAC Award.
The first award was presented in 2015.
Status: Goal achieved
Transport and warehouse safety
Goal: Further improve warehouse and transport safety
Measure(s): Expand scope of transport safety audits to include contracted service providers
By when: End of 2016
Status description for 2015: The warehouses of all contracted service providers have been integrated into our audit process.
We are currently working on a method of integrating transport companies into our audit process as well.
Status: In progress
Measure(s): Implement improvement programs in countries and regions selected on risks specific to the products being handled
By when: End of 2016
Status description for 2015: In 2015, we piloted a project in India to increase transport and warehouse safety. The first set of improvements have already been implemented. In 2016, we plan to examine the documentation and risk assessment of participating suppliers to find areas for improvement.
Status: In progress
Measure(s): Implement a process to further improve our management approach to transport and warehouse safety
By when: End of 2016
Status description for 2015: In the course of the assessment process, we utilized safety-relevant customer complaints to identify areas for improvement and then implemented measures such as the following:
- Improving the packaging concept for certain chemicals
- Warehouse audits of third-party companies
Status: In progress
Suppliers
Supplier management
Goal: Ensure our suppliers adhere to ethical, social, environmental, and compliance standards (part of our risk mitigation strategic procurement objective)
Measure(s): Systematically collect supplier assessments using the Together for Sustainability (TfS) methodology
By when: End of 2015
Status description for 2015: The TfS process has been implemented. TfS has given us access to evaluations for over 300 of our most important suppliers; roughly 100 of these were initiated in 2015 at our prompting. In addition, we also conducted TfS audits on nine vendors in 2015.
Status: Goal achieved
Measure(s): Establish a CR standard operating procedure
By when: End of 2015
Status description for 2015: A CR SOP was drafted in 2015; it will be adopted and implemented Group-wide in early 2016.
Status: In progress
Employees
Diversity and inclusion
Goal: Increase the percentage of management positions (Global Grade 14+) held by women to at least 25%-30%
Measure(s): Increase the percentage of management positions held by women through numerous initiatives that move women into those positions
By when: End of 2016
Status description for 2015: We are utilizing targeted communication activities to raise awareness of diversity within the company. Our HR processes, such as talent management, help ensure that women are included as well as empowered.
The percentage of management positions (Global Grade 14+) held by women is currently 27% Group-wide. Certain Group functions such as IT have a lower percentage of women in management positions. However, the figures are continuously increasing across the Group as a whole. We have reached our strategic goal of raising the percentage of management positions held by women to 25%-30% and intend to further increase this figure by the end of 2016.
Status: In progress
Attracting and retaining talent
Goal: Talent & Succession Management: Fill at least 2/3 of positions ranked Global Grade 16+ with internal candidates
Measure(s): Use the Talent Management Process to identify suitable employees with management potential and define a process to systematically develop them
By when: Ongoing
Status description for 2015: In 2013, we introduced the Talent & Succession Management Process in order to systematically foster and develop talent. In 2015, 70% of our vacant management positions were filled internally.
Status: Goal achieved
Goal: Have at least 50% of managers rated Global Grade 14+ take part in a management program
Measure(s): Expand the geographical range of the programs to reach a broader target group. Have senior management act as the official program sponsors.
By when: End of 2018
Status description for 2015: In 2015, we rolled out the Growth Markets Management Program for local managers in India and Latin America. This initiative covers both business administration as well as company-specific subject matter. To date, 35 managers from India and Latin America have taken part in the program, which is being offered in China and Turkey as well. Participants come from various countries and regions such as Africa, the Middle East, Japan, and Russia. In total, 98 managers Group-wide took advantage of this initiative in 2015.
On top of this, we expanded the scope of our Advanced Management Program and offered workshops in China and Thailand. The initiative aims to empower our managers to make decisions and unleash their innovative strength.
We also rolled out “Critical Conversations” and “Leader as a Coach” workshops.
Status: In progress
Goal: Build a talent pool that reflects the demographic structure of the company
Measure(s): Identify talent, keep managers informed about the company's demographic profile (e.g. age, nationality, gender)
By when: Ongoing
Status description for 2015: In 2015, we incorporated demographic information into our talent pool. Managers are now familiar with the demographic structure of the pool, and we can thus steer its development accordingly.
Status: In progress
Goal: Competency-based interviews with 20% of the talent with potential for a GG18+ position
Measure(s): Nominate suitable talent within the scope of the Talent & Succession Management program
By when: Ongoing
Status description for 2015: Annually, interviews are conducted with around 20% of the talent with potential for a GG18+ position.
Status: Goal achieved
Goal: Have 80% of all employees using the HR Suite IT system for their annual Performance Management Process assessment
Measure(s): Expand the HR Suite user group to new target groups
By when: Ongoing
Status description for 2015: In 2015, around 85% of our employees used the HR Suite IT system.
Status: Goal achieved
Goal: Position the company as an attractive employer for university graduates
Measure(s): Participate in university fairs and organize events for graduates; position the company as an attractive employer using employer branding channels (e.g. career websites, social media, image advertising)
By when: Ongoing
Status: New goal
Occupational health and safety
Goal: Reduce occupational accidents throughout the entire Group (lost time injury rate = 2.5)
Measure(s): Implement the BeSafe! program; hold EHS forums on safety behavior change
By when: End of 2015
Status description for 2015: With a lost time injury rate of 1.5, we achieved the goal we set for 2015. The BeSafe! program was rolled out across all operational sites of the company (including warehouses) and contributed significantly to achieving our goal.
Status: Goal achieved
Goal: Reduce occupational accidents throughout the entire Group (lost time injury rate = 1.5)
Measure(s): Implement the OHSAS 18001 occupational health and safety management system within all Performance Materials production sites
By when: End of 2016
Status description for 2015: Within the framework of a group certificate, nine of our 24 Performance Materials production sites achieved OHSAS 18001 certification in 2015.
Status: New goal
Measure(s): Roll out the BeSafe! program at all newly acquired sites and monitor the program via appropriate indicators
By when: End of 2020
Status: New goal
Environment
Environmental impact mitigation
Goal: Audit and implement environmental management systems at acquired sites
Measure(s): Certify environmental management systems at acquired sites
By when: Ongoing
Status description for 2015: Eight out of nine production sites of AZ Electronic Materials, which was acquired in 2014, have been incorporated into our group certificate. The ninth facility is still undergoing the process.
Next year we plan to transition the Sigma-Aldrich production sites with existing ISO 14001 certifications to the company's certificate (ISO 14001).
A gap analysis is planned for the remaining Sigma-Aldrich production sites.
Status: In progress
Climate impact mitigation
Goal: Reduce the company's direct and indirect greenhouse gas emissions (Scope 1 and 2) by 20% relative to the 2006 baseline
Measure(s): Systematically examine the energy consumption at our individual production sites
By when: End of 2020
Status description for 2015: We continued to systematically investigate ways to save energy at our production sites. We conducted energy audits based on the EU Energy Efficiency Directive at several facilities, including our sites in Eppelheim and Berlin (Germany), as well as Calais and Meyzeiu (France).
Status: In progress
Measure(s): Identify and implement ways to save energy
By when: End of 2020
Status description for 2015: In 2015, we lowered our greenhouse gas emissions by around 8% relative to the 2006 baseline, despite growth in our operating business. Around two-thirds of the EDISON projects planned Group-wide have already been or are being rolled out. In 2016, we intend to initiate 57 new projects.
Status: In progress
Measure(s): Reduce process-related emissions
By when: End of 2020
Status description for 2015: Our Life Science business sector plays an important role in helping reduce process-related emissions. In 2014 at our site in Jaffrey, New Hampshire (USA), we optimized processes and thereby achieved a two-thirds reduction in our process-related emissions per production unit. In 2015, we initiated a project to realize additional savings.
Status: In progress
Measure(s): Reduce greenhouse gas emissions of our Life Science business sector (includes only the former life science tools business - excludes Sigma-Aldrich, which was acquired in November 2015) by 10% by 2015 (2006 baseline)
By when: End of 2015
Status description for 2015: In 2015, our Life Science business sector (only includes the former life science tools business - excludes Sigma-Aldrich, which was acquired in November 2015) reduced greenhouse gas emissions by approx. 11% relative to the 2006 baseline.
Status: Goal achieved
Waste management
Goal: Improve waste and recycling management processes
Measure(s): Perform waste audits to identify ways to reduce waste or increase recycling efficiency
By when: End of 2015
Status description for 2015: Waste reduction and recycling activities continued through 2015. We have begun to investigate options to recycle production scrap that requires custom recycling techniques.
Status: Goal achieved
Water
Goal: 10% reduction (2006 baseline) in the water use of our Life Science business sector (only includes the former life science tools business - excludes Sigma-Aldrich, which was acquired in November 2015)
Measure(s): Implement water reuse and reduction initiatives
By when: End of 2015
Status description for 2015: Despite significant increases in production volume, our Life Science business sector (only includes the former life science tools business - excludes Sigma-Aldrich, which was acquired in November 2015) reduced water consumption by approx. 5% between 2006 and 2015.
Status: Goal not Achieved
Goal: 10% reduction (2014 baseline) in water use at sites with relevant levels of water consumption in water-scarce regions (i.e. areas of high water stress)
Measure(s): Implement sustainable water management processes at production facilities with high levels of water consumption, as well as those sites located in water-scarce regions.
By when: End of 2020
Status: New goal
Community
Praziquantel Donation Program
Goal: Eliminate schistosomiasis in African school children
Measure(s): Provide praziquantel tablets free of charge to treat school children in Africa
By when: Ongoing
Status description for 2015: In 2015, we provided WHO with more than 100 million praziquantel tablets.
Status: In progress
Measure(s): Incrementally increase annual tablet donation by a factor of ten, from 25 milion in 2012 to up to 250 million
By when: End of 2016
Status description for 2015: We increased the number of tablets donated annually to WHO to more than 100 million.
Status: In progress
Measure(s): Optimize the praziquantel formulation
By when: End of 2019
Status description for 2015: We have finished developing the formulation, which we plan to submit to regulatory authorities in 2017.
Status: In progress
Measure(s): Research a new praziquantel formulation for children under the age of six
By when: End of 2019
Status description for 2015: In 2015, we completed the Phase I bioavailability trials with healthy subjects in South Africa, as well as the taste study with children in Tanzania.
For 2016, we are planning to conduct a Phase 2 trial with children under six in the Ivory Coast.
Status: In progress
Combating counterfeit medicines
Goal: Fight counterfeit medicines by providing and optimizing the GPHF Minilab™
Measure(s): Develop new test methods for five active ingredients and expand manuals to describe the new testing methods
By when: End of 2015
Status description for 2015: In 2015, five new test methods were developed, which means that 80 test methods total are now available. Instruction manuals have been updated accordingly.
Status: Goal achieved
Measure(s): Conduct three seminars on how to use the GPHF Minilab™; sell 25-30 Minilabs™
By when: End of 2015
Status description for 2015: In 2015, we held two seminars to teach people how to use the GPHF Minilab™; one workshop was postponed to the beginning of 2016. On top of this, we sold 45 Minilabs™.
Status: Goal achieved
Measure(s): Develop new test methods for five active ingredients and expand manuals to describe the new testing methods
By when: End of 2016
Status: New goal
Measure(s): Conduct two seminars on how to use the GPHF Minilab™; sell 40 Minilabs™
By when: End of 2016
Status: New goal