Calculation basis

Reporting principles (GRI 2-3)

Galenica’s sustainability reporting is carried out annually and covers the period from 1 January to 31 December 2024. This report was approved by the Board of Directors on 5 March 2025 and published on 11 March 2025. It follows the GRI Standards, supplemented by the requirements of the revised Swiss Code of Obligations (Art. 964a et seq.) and the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). The GRI content index can be found in the Annex. In addition, the TCFD Index and the Non-Financial Disclosure Index provide detailed insights into the respective disclosures.

The list of material topics based on the principle of dual materiality was drawn up in 2023 and is disclosed in the section our approach of the Annual Report.

Reporting scope (GRI 2-2)

The sustainability report of Galenica Ltd. covers all subsidiaries that are fully consolidated in accordance with the International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB). Associated companies and joint ventures are excluded. Further details on the Group companies can be found in note 32 “Group Companies” to the consolidated financial statements. Exceptions to the scope of this reporting are explicitly marked.

Acquisitions and divestments

Newly acquired or sold companies in the current financial year are not included in the key figures unless this is explicitly stated in the notes to the report.

Data collection process

Each key figure is based on defined internal guidelines, processes, controls and responsibilities. The data originates either from the internal systems of the Galenica Group or, if necessary, from the systems of third parties. Unavailable data are estimated in line with recognised processes and industry standards.

Assumptions and estimates

For each estimate made, the underlying methodology is disclosed in the report.

Data on environmental impact (GRI 302-1, 302-2, 305-1, 305-2, 305-3)

As Galenica is constantly optimising the system of environmental indicators and gradually expanding the system boundaries (due to primarily inorganic corporate growth), the data is only comparable to a limited extent from year to year.

For Amavita, Sun Store and other Galenica Group pharmacies, the electricity consumption in 2024 was estimated based on consumption in 2023. Almost all premises are leased, which is why only the annual costs are provided for each location, and not the actual consumption. The electricity consumption of the pharmacies was therefore calculated in 2023 on the basis of electricity costs and the average electricity prices per region according to the Federal Electricity Commission (ElCom). In 2024, the heat consumption of all pharmacies was extrapolated, also based on a representative sample of 21 affiliates. Among other things, differences in heat source (32% district heating, 38% natural gas and 30% heating oil) were also taken into account. The amount of municipal waste generated was extrapolated based on a representative sample of a total of 20 pharmacies. The medium-sized pharmacy generated around 4 tonnes of waste in 2024. The water consumption of all affiliates was also extrapolated based on the available data from 5 locations.

The CO₂e emissions caused by energy consumption are calculated using scientifically recognised emission factors (Switzerland’s greenhouse gas inventory of the Federal Office for the Environment and the UK Department for Environment, Food & Rural Affairs, as well as International Energy Agency (IEA) and [Alig, M., Tschümperlin, L., & Frischknecht, R. (2017). Greenhouse gas emissions of the electricity and district heating mixes in Switzerland according to the GHG Protocol. Commissioned by Sustainserv GmbH, UBS Fund Management, Swiss Post and pom+ Consulting. treeze Ltd., Uster]). The calculated CO₂e emissions relate to direct and indirect emissions. According to the Greenhouse Gas Protocol, Galenica's direct sources of emissions are the generation of space heating and the operation of its own vehicle fleet (= Scope 1). The production of purchased district heating and electricity (= Scope 2) and the logistics services of contract drivers (= Scope 3) are recognised as important indirect sources of emissions.

When calculating Scope 1–3 emissions, it is taken into account that diesel with a biogenic content of up to 7% is available at filling stations in Switzerland. In addition, the compressed propellant gas (CNG) used contains 20% biogas. The biogenic proportion of greenhouse gases produced is not accounted for in Scopes 1–3. The global warming potentials of the IPCC are used to calculate the greenhouse gas effect of refrigerant losses.

Scope 2 emissions are calculated using both the market-based and location-based approaches. For the latter, the producer mix according to IEA is decisive. This is refined with energy trade corrections to better reflect the GHG footprint of the energy actually available from the grid. Direct contracts between companies of the Galenica Group and producers of renewable electricity can play a role in the market-based method. In this case, the emission factor available from the producer is used wherever possible. Otherwise, as is also the case for the purchase of electricity from hydropower which is certified by guarantees of origin, a corresponding emission factor from a study by treeze Ltd. is used.

Data on our employees & diversity among staff (GRI 405-1)

The key figures on the number of employees include all companies of the Galenica Group with a majority holding as of 31 December 2024 (including apprentices and interns).

More detailed key figures on employees, such as information on diversity (GRI 405-1), refer exclusively to companies that are fully integrated into the Galenica Group’s HR system. Temporary and external employees are not included in this disclosure. Companies that have only recently become part of Galenica will be integrated into the Galenica Group’s HR system at a later date. Due to systemic challenges and depending on the size of the company to be integrated, full HR integration may take some time. Companies domiciled abroad are not integrated. For 2024, the employees of Bahnhof Apotheke Langnau, Medinform, Padma and Dr A&L. Schmidgall are not included in the detailed disclosures. Detailed key figures on employees cover 96.2% of the total employee population.

Data on the Opinio employee survey

The Opinio employee survey is conducted annually by an external body in a standardised online format. In 2024, the survey took place between 15 October and 20 November, based on the number of employees as of September. All employees were surveyed, including apprentices and interns, but excluding temporary and external employees. Data from the Opinio employee survey also includes associated companies and joint ventures Coop Vitality, Coop Vitality Management, Curarex swiss, Mediservice and Emeda as well as employees of the Galenica Pension Fund. However, companies that are not fully integrated into the HR system of the Galenica Group, such as the employees of Aquantic and Dr A&L. Schmidgall are not included. A total of 8,856 employees were surveyed.

The key figure for employee motivation is calculated from the arithmetic average of 16 questions from the Opinio employee survey. This average is then converted into a scale from 0 to 100.

Customer satisfaction data

Twice a year, an external market research institute is commissioned to survey the net promoter score (NPS) by means of representative market surveys. Data is collected via online interviews as part of panels. Data is collected from over 2,000 pharmacy customers who are asked how likely they are to recommend a pharmacy format to others. People answer with a number between 0 (highly unlikely) and 10 (highly likely). Responses between 0-6 are classed as “detractors,” 7-8 are classed as “indifferent” and 9-10 are classed as “promoters”. To calculate the NPS, the percentage of “promoters” is subtracted from the percentage of “detractors”. The NPS can therefore be between -100 (very poor) and +100 (very good). The rational net promoter score (rNPS) positions the NPS of Galenica in relation to the NPS of competitors. For competitive reasons, Galenica does not disclose the actual figure or distance to the best competitor.

The NPS is collected for the Amavita, Sun Store and Coop Vitality pharmacy formats and is included in the key figure accordingly. The decisive measurement for target achievement is the second measurement in the year, which was taken in the third quarter of 2024. The degree of target achievement is based on the calculated rNPS of the second measurement compared to the rNPS target defined by the Board of Directors.

Correction or restatements of information (GRI 2-4)

Investment in training and education (GRI 404-2) was adjusted for 2023 and 2022. The reason for this is that, in the past, intra-group training and education costs (e.g. incurred by the company medinform Ltd., which was acquired in 2022) were not included. From 2024 onwards, these are taken into account and previous years have been adjusted accordingly.

The information on energy consumption (GRI 302-1, 302-2) and emissions (GRI 305-1, 305-2, 305-3, 305-4) was restated for 2023 on the basis of newly available information. Details can be found in the section on greenhouse gas emissions and resources.

Independent audit (GRI 2-5)

Ernst & Young Ltd. was appointed by Galenica to perform a limited independent audit of selected key figures in the GRI report. Ernst & Young Ltd. is also the external statutory auditor of the Remuneration report, the consolidated financial statements in accordance with IFRS and the statutory financial statements of Galenica Ltd.

Further details on the audit can be found in the independent audit report.

All audited figures in the sustainability reporting are marked in the report with the symbol ▶ data externally assured (limited assurance).