Our approach

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, including climate-related topics. 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 GNSC consists of the Chair of the Board of Directors, the Vice Chair and other members of the Board of Directors who are appointed by the entire Board of Directors at the inaugural meeting (first meeting after the General Meeting) for a term of office of one year. The Committee annually reviews the materiality matrix, sustainability goals and potential climate-related risks and opportunities, and ensures that the corporate strategy is aligned with sustainable business management. In the reporting year, the GNSC discussed the topic of sustainability, including climate issues, twice.

The Board of Directors, which approves the sustainability goals and monitors progress in achieving them, discussed the topic of sustainability, including climate-related matters, four times in 2024.

The Executive Committee is responsible for implementing the sustainability goals and integrating them into day-to-day business.

The Sustainability Committee (SC) is led by the Chief Sustainability, Public Affairs & Transformation Officer, who plays an advisory and coordinating role as a member of the extended Executive Committee. The Committee prepares specific proposals on 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 targets are set and measures implemented. The Committee includes representatives from all key sustainability topics, all companies and company areas as well as the Executive Committee.

The SC met four times in the reporting year. The focus was on TCFD implementation, Scope 3 emissions, customer satisfaction and employee health. 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 2024, these were further substantiated or already implemented in the responsible areas. The SC coordinates the activities and the Chief Sustainability, Public Affairs & Transformation reports regularly to the Executive Committee and the Board of Directors.

The Executive Committee is responsible for the implementation and management of climate-related risks and opportunities. The Chief Sustainability, Public Affairs & Transformation chairs the Sustainability Committee and is primarily responsible for the sustainability strategy. The CFO integrates climate-related risks and opportunities into risk management and reports to the Executive Committee on progress twice per year.

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

Already in 2023, Galenica conducted a materiality analysis based on the dual materiality principle. First, the impact of Galenica’s business activities on its social, environmental and economic environment was assessed through expert interviews with internal and external stakeholder groups relevant to Galenica. This information was combined with legal requirements, ESG standards and ratings as well as comparisons with other companies. The results were summarised thematically and discussed by the Executive Committee and the Board of Directors. Using an online survey, internal and external stakeholder groups – 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:

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

The evaluated results of the online survey are summarised in the matrix below. As part of the annual review, the materiality matrix was confirmed and acknowledged by the Executive Commitment and the Board of Directors for the year under review.

Further information on the management of the material topics can be found in the Sustainability organisation section and in the GRI Report.

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.

Note about the graphic: Click on the various icons in the graphic for interactive information.

Specifically, the following changes were made to the way the goals are formulated in the reporting year:

For all three objectives in the area of corporate governance, the specific number of measures implemented has been replaced with the term “several times a year”. The relevance of taking measures varies depending on the target group. A fixed number is therefore not appropriate.

The target for the “employee survey” has been adjusted. It is our ambition to convince more employees to participate each time the survey is conducted. In addition to the motivation rate, we also included the recommendation rate, as these correlate with each other. This value is at a pleasing level and should at least be maintained compared to the base year of 2023.

Furthermore, the target of “time to hire” no longer applies specifically only to IT and pharmacy staff, but to all professional groups. In addition, the staff turnover rate has been deleted, as it varies greatly depending on the area and is not meaningful enough as a target in terms of the sum of areas. This is because our job profiles are very different ant therefore the relevance of the loss of expertise varies greatly in terms of staff turnover.

Targets for mental illness and occupational and non-occupational accidents have been combined to ensure consistent recording and reporting of absence rates. The new wording reads: "We will reduce the absence rate of occupational accidents and illnesses (physical and mental) by 10% (base year 2023).”

The wording of the target regarding “customer satisfaction” now also includes the component of measuring the gap compared to the average among competitors. This allows the rNPS recommendation rate achieved to be classified more precisely.

From 2025, we will not inspect the top 10 suppliers every three years, but will instead carry out random checks every year – and not just of the top suppliers. The annual random check, which also includes smaller suppliers, allows a broader analysis and strengthens compliance with the Supplier Code of Conduct.

When it comes to reducing the intensity of greenhouse gas emissions, we now distinguish between Scope 1, 2 and 3. Our current focus is on operational emissions (Scope 1+2). A roadmap to reduce Scope 3 emissions is in preparation. This then forms the basis for submitting the emission targets (all scopes) to SBTi (Science Based Targets initiative).

The target regarding the replacement of fossil fuels in our vehicle fleet has been supplemented by the addition of the phrase “own and contracted” and is now set for 2032. The reason for this is that partner vehicles are increasingly being added to our fleet and the technology for renewable drive systems with the required power is taking a little longer than originally assumed, particularly in delivery transport. The industry is not yet able to offer us broadly applicable solutions that meet all the requirements.

The previous environmental target “We will reduce our municipal waste by 50% by 2025” was deleted completely in 2024. This decision was made based on multiple responses from internal and external stakeholders who had questioned the relevance of the target in relation to the other targets.

With the measures taken and implemented in 2024, achieving the goals is generally realistic and on track. Some goals will be slightly delayed due to new or adapted processes and expanded data bases or have been adjusted due to new findings.

Further information on 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 (Good 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. Our corporate activities also influence SDG 5 (Gender Equality), SDG 8 (Decent Work and Economic Growth), SDG 12 (Responsible Consumption and Production), SDG 13 (Climate Action) and SDG 16 (Peace, Justice and strong institutions).

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 aspects of life, 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, the use of public transport and electric cars by our employees. We are looking to increase energy efficiency and are investigating the installation of photovoltaic systems. In addition, we have defined specific targets to reduce greenhouse gas emissions and replace fossil fuels. We want to use only renewable energy sources at all our operation sites. Furthermore, we rely on supply chain partnerships in accordance with SDG 17 to promote circularity with regard to 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 avoidance, reduction, recycling and professional disposal of waste is of central importance to us. By disposing of medicines properly, we also contribute to preservation of biodiversity. 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 these are protected against unauthorised access and modifications 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 highest 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 essential 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 committed to the next generation of qualified employees and train apprentices. With all these measures, we are supporting sustainable labour and economic growth in Switzerland.

Retention of qualified employees

Retaining skilled 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 a high priority at Galenica. We take all possible precautions to protect the health and safety of all employees in the workplace. We also operate a case management system to identify potential health risks at an early stage and enable a rapid 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 over 85 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 guarantee equal opportunities and are committed to reducing inequalities. In doing so, we are also contributing 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 in an ethical and legal manner. All our business activities are conducted in accordance with applicable laws and compliance with human rights is essential for us. This is how we contribute to a peaceful and inclusive society.