Sustainability

With these guiding principles, we educate and motivate employees to continuously increase our resource intensity, efficiency, capacity for innovation and, ultimately, competitiveness. On the other hand, the lively, ongoing dialogue with the various stakeholders helps to identify requirements and expectations at an early stage and to maintain Galenica’s strong reputation.

Our key sustainability topics are integrated into the corporate vision and the objectives of the strategic programmes and are therefore part of the corporate strategy.

Sustainability organisation (GRI 2-12, 2-13, 2-17)

The Board of Directors bears ultimate responsibility for the economic, environmental and social impact of the Galenica Group. The Governance, Nomination and Sustainability Committee (GNSC) advises the Chair of the Board of Directors and the entire Board of Directors on sustainability matters. The Committee consists of the Chair of the Board of Directors, the Vice Chair and other members who are elected by the Board of Directors on the proposal of the Chair of the Board of Directors. Among other things, the Committee reviews the relevance matrix and the sustainability goals on an annual basis and ensures that the corporate strategy is geared towards sustainable management. In the reporting year, the GNSC discussed the topic of sustainability twice. The Board of Directors approves the sustainability goals and monitors progress in achieving them. The topic of sustainability was discussed by the Board of Directors four times in 2023. The Executive Committee is responsible for implementing the sustainability goals and integrating sustainability into day-to-day business.

The Sustainability Committee (SC) is led by the Chief Transformation Officer and plays an advisory and coordinating role. The Committee develops specific proposals for implementing the sustainability strategy for the attention of the Executive Committee and the Board of Directors. The main task is to systematise internal sustainability management and external reporting and to ensure that the measures are implemented. The Committee is structured in such a way that, in addition to be able to cover all key sustainability topics, all Business and Service Units and the Executive Committee are also represented on the Committee by a responsible person.

The SC met four times in the reporting year. In between Committee meetings, several smaller meetings were held by individual working groups to discuss the progress made with the sustainability goals and the implementation of the measures. In 2023, the measures were further specified or already implemented. This is mainly done in the Business Units. The SC coordinates the activities and the Chief Transformation Officer regularly reports to the Executive Committee and the Board of Directors.

Materiality matrix (GRI 2-14, 3-1, 3-2)

In 2023, Galenica conducted a materiality analysis based on the dual materiality principle. First, the impact of Galenica’s business activities on the social, environmental and economic environment was assessed through interviews with experts and stakeholders relevant to Galenica. We also drew on legal requirements, information from ESG standards and ratings, and peer comparisons to determine the impact. The identified impacts of business activities were summarised into overarching topics and discussed by the Executive Committee and the Board of Directors. Using an online survey, internal and external stakeholders – investors, partners, suppliers, customers, associations, employees and authorities – were asked about the key topics. They had to assess each from two perspectives and assign a score from very low to very high:

• Relevance for Galenica (outside-in perspective)
• Relevance for the social, environmental and economic environment of Galenica (inside-out perspective)

We have evaluated the results of the online survey and summarised them in the matrix below. The materiality matrix was acknowledged by the Executive Committee and the Board of Directors.

Further information on managing the material topics can be found in the section Sustainability organisation.

Galenica provides information on the development of material topics once a year in its sustainability report. The Board of Directors is responsible for reviewing and approving the reported information.

Our sustainability goals

The SC has defined specific targets for all material sustainability topics, which were approved by the Executive Committee and the Board of Directors at the end of 2021. In 2023, the SC adjusted some of the goals. This was approved by the Executive Committee and the Board of Directors at the end of 2023.

The target for the time to hire with regard to retaining qualified employees has been adjusted as well as the additional parameter fluctuation, as the overriding objective of retaining qualified employees cannot be achieved simply by reducing the time to hire. The new objective is as follows: We will reduce the time to hire for pharmacy staff and IT (difficult hires) by 10% by 2024 and Group fluctuation by 6%.

In the 2023 materiality process, health promotion was also identified as a new relevant topic and positioned in the relevance matrix. A new objective has also been defined for this new topic: We will increase the number of healthcare services provided by 10% annually until 2027. In addition, a new NPS target was defined on the topic of customer satisfaction: Customer satisfaction is at the heart of everything we do. NPS is used to systematically measure the satisfaction of end customers and determine the gap compared to the average of the competition.

With the measures taken and implemented in 2023, achievement of the targets is generally realistic and on track. A few targets have been delayed slightly due to new or adapted processes and expanded data bases. Only the target “We train all employees in compliance at least once a year” was rated as critical at the end of 2023, as a quota of 100% is hardly achievable due to holiday absences or illness.

Progress towards our sustainability goals can be found in the GRI report.

Our contribution to the Sustainable Development Goals

The Sustainable Development Goals (SDGs) form the global reference framework for sustainable development. The Galenica Group is committed to the SDGs. As Switzerland’s leading fully integrated healthcare provider, we make an important contribution to SDG 3 (Health and Well-being). This objective is central to our business activities and is in line with our customer promise to support people at every stage of life on their journey towards health and well-being. We also contribute to SDG 8 (Decent Work and Economic Growth), SDG 12 (Responsible Consumption and Production), SDG 13 (Climate Action), SDG 10 (Reduced Inequalities) and SDG 16 (Peace, Justice and Strong Institutions) through our corporate activities.

Patient safety and health

Patient safety and health are a top priority for us. With personal and competent advice and a unique range of products and services, we support our patients in all life situations at every stage of their lives, promote their well-being and enable people of all ages to lead a healthy life.

Emissions and climate change

We promote the use of renewable energies in distribution and the use of public transport and electromobility by our employees. We always take measures to increase energy efficiency into account and examine the feasibility of installing photovoltaic systems. In addition, we have defined specific targets for reducing greenhouse gas emissions, replacing fossil fuels and using exclusively renewable energy sources at all operation sites. We also rely on supply chain partnerships in accordance with SDG 17 to promote recycling with regard to the climate, water and waste. With these measures, we are contributing to the fight against climate change.

Waste and recycling

In addition to traditional municipal waste, we also produce medical and chemical waste. The prevention, reduction, recycling and professional disposal of waste is of central importance to us. We also contribute to biodiversity conservation by disposing of medications properly. Environmentally friendly waste management forms the basis for responsible consumption and production.

IT security and cybercrime

With the increasing digitalisation of the healthcare system, the risk of cyber attacks is growing. This is why IT security is highly important at Galenica. As a healthcare provider, we process sensitive information and data. We ensure that they are protected against unauthorised access and unauthorised changes or loss. Protecting IT systems is key to a peaceful and inclusive society as well as strong institutions.

Data protection

Protecting patients and customer data is a top priority for us. We respect and protect the personal data and privacy of patients when processing their data. Our Data Protection Policy contains general rules on the organisation and responsibilities of the Galenica Group with regard to data protection. Data protection is an important basis of a peaceful and inclusive society as well as strong institutions.

Reliable procurement and supply chain

We work closely with suppliers to ensure the greatest possible availability of medicines. An IT-based scheduling system also helps us to optimise procurement and logistics processes. Reliable provision of medicines to the population is key to promoting health and well-being.

Employee motivation and development

Our employees play a key role in our success. We consistently promote employee motivation and development by offering our employees attractive and fair employment conditions, modern and flexible working models and various programmes and opportunities for further development. We also support the next generation of qualified employees by training apprentices. Through all these measures, we are supporting sustainable labour and economic growth in Switzerland.

Retention of qualified employees

Retaining qualified employees in the healthcare professions and IT sectors is a major challenge in Switzerland. Our recruitment strategy includes measures to promote the company’s image as an employer, positioning and university marketing for pharmaceutical students in order to secure qualified employees. In doing so, we are supporting sustainable labour and economic growth in Switzerland.

Occupational health and safety

The physical and mental health of employees is very important at Galenica. This is why we take all possible precautions to protect the health and safety of all employees in the workplace. We also operate preventive case management in order to identify potential health risks at an early stage and ensure a quick return to work after an illness or accident. We are thus making a significant contribution to the health and well-being of our employees.

Diversity and equal opportunity

We are committed to diversity and equality and bring together people from 89 countries and all age groups. Three-quarters of employees are women. Our Code of Conduct states that we do not tolerate any discrimination or harassment. We also ensure that salaries are equal between men and women. We ensure equal opportunities and are committed to reducing inequalities. In doing this, we also contribute to SDG 5 (Gender Equality).

Corporate Governance

Good and transparent corporate governance is crucial for us to manage the company effectively and efficiently. In addition, corporate governance forms the basis for a peaceful and inclusive society based on equal participation of all people, as well as strong institutions.

Compliance

We attach great importance to conducting our business activities ethical and legal manner. All of our business activities are conducted in accordance with applicable laws, and respect for human rights is nonnegotiable for us. This is how we contribute to a peaceful and inclusive society.