Integrity in the supply chain

Management of the material topic (GRI 2-23, 2-24, 2-25, 2-26, 3-3)

Galenica ensures that not only the Group and its companies, but also its business partners comply with international and national laws and norms, as well as industry-specific standards, good practices and human rights. This ensures decent work, fair wages and equality in the supply chain, which has a positive effect on the industry and promotes sustainable economic growth in Switzerland.

Supplier Code of Conduct

Galenica updated its Supplier Code of Conduct in 2023. The aim is to increase transparency in the company’s own supply chain and thus ensure that employees can take responsibility seriously. The Code of Conduct refers to internationally anchored human rights standards and the applicable core conventions of the International Labour Organizations (ILO) and contains, in particular, guidelines on compliance with labour and human rights, ethical business practices and environmental, health and quality regulations. The Code of Conduct applies to suppliers, service providers and consultants of the Galenica Group. It was published on the website and forms part of all newly concluded contracts. The Legal Department is always involved and regularly reviews the contract templates of the Galenica Group to check for compliance risks. Purchasing department employees also receive training covering the content of the Code of Conduct.

Galenica plans to review compliance with the Supplier Code of Conduct of the top 10 suppliers every three years from 2025.

Internal and external stakeholders may raise concerns about Galenica’s business activities through the external Whistleblower Reporting Office. This offers all employees and business partners the opportunity to anonymously report suspected breaches of the rules. All reports are investigated.

The Supplier Code of Conduct was updated in July 2023 and forms part of all new contracts concluded. The questionnaire for suppliers is currently being prepared and will be implemented in 2024.

Evaluation of the management approach and measures

• Reporting: Suspected cases are investigated, and in the event of violations, sanctions are imposed.
• Introduction of supplier audits: Starting in 2025, our top 10 suppliers are to be audited every three years for compliance with the Supplier Code of Conduct.
• Reporting in accordance with the Ordinance on Due Diligence and Transparency in Relation to Minerals and Metals from Conflict Areas and Child Labour (VSoTr).

Due Diligence and Transparency in relation to Minerals and Metals from Conflict Areas and Child Labour

Galenica has fulfilled its audit obligations with regard to the Ordinance on Due Diligence and Transparency in relation to Minerals and Metals from Conflict-Affected Areas and Child Labour, which applies from the 2023 financial year. In particular, internal and external investigations were carried out to determine the extent to which Galenica is affected by conflict minerals and child labour. There are no points of contact with conflict minerals, which is why Galenica is exempt from its due diligence and reporting obligations in this regard. Galenica has written to the most important suppliers with regard to child labour and had them documented. Investigations have shown that there are no reasonable grounds to suspect child labour and Galenica is therefore also exempt from its due diligence and reporting obligations in this regard.