H Lundbeck A/S : Sustainability Report

Sustainability Report 2020

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www.lundbeck.com

Photography Jens Honoré (cover, p.2, 17),

Tuala Hjarnø (p.4, 10), Anera (p.10), Lundbeck (p.16).

Design Make®

February 2021

Ongoing commitment

Lundbeck is a participant in The United Nations Global Compact which we became a signatory to in September 2009. We would like to express our continued support for the Global Compact and hereby renew our ongoing commitment to the initiative and its principles.

"I would never dare to share my history for fear of appearing weak."

About Lundbeck

Lundbeck is a global pharmaceutical company specialized in brain diseases

We are tirelessly dedicated to restoring brain health, so every person can be their best. To fulfill this purpose, Lundbeck is engaged in the research, development, manufacturing and commercialization of pharmaceuticals across the world. For more than 70 years, Lundbeck has been at the forefront of neuroscience research.

With our unique position as specialists in brain disease, we want to raise disease awareness and challenge the international agenda for broader acceptance of patients and increased opportunities for better treatment.

Ruth Joseph

USA

The stigmatization of people with depression infiltrates schools, workplaces and even families. In the latest issue of Lundbeck Magazine, you can meet a number of brave people who have now chosen to speak out about their disease and how it impacts their life. One of them is 52-year-old Ruth Joseph.

Depression entered Ruth's life back when she was a stay-at-home mother with two small boys. She was

living what she describes today as "a dream life"

• and yet she felt ashamed. She felt ashamed that she wasn't happy.

True happiness and fake happiness can look like each other, but they lie worlds apart. Ruth has known both and she knows a great deal about keeping your vulnerability hidden. "I would never dare to share my history for fear of appearing weak," Ruth says.

2	Lundbeck Sustainability Report 2020

Contents

1

Deborah Dunsire

President and CEO of Lundbeck

Introduction

4

Letter from the CEO

5

Our approach to sustainability

6

Efforts and aspirations

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Impact

8

Global health and wellbeing

11

Climate action and circularity

13

Business ethics

15

Inclusive and safe working conditions

2

3

Factbook

18

Introduction to ESG factbook

19

Environment

22

Social

24

Governance

26

Reporting on targets

27

TCFD reference index

28

Accounting principles

30

Assurance report

2020 highlights

New science-based climate target

for entire value chain approved

Launched partnership with IHP

on product donations

68% recycling of solvents

in production

Ranked #4 globally on the Net Promoter Score measuring patient groups' willingness to work with and recommend the company

Global Diversity & Inclusion Forum

recommendations from employees adopted

Achieved "ESG Industry Top Rated"

by Sustainalytics

1	Letter from the CEO

IntroductionImpactFactbook

Committed to increasing impact

In 2020, the pandemic placed unparalleled demands on our healthcare systems, and has also had a tremendous impact on mental health around the world. It has in many ways been a year to remind us of the importance and challenges of good health and wellbeing for all.

We are delighted to share with you this report, which demonstrates how we are making progress towards our 2030 sustainability aspirations, even in the face of the extraordinary challenges we confronted during 2020.

As a pharmaceutical company, restoring brain health so every person can be their best is our guiding purpose. Research and development of medical treatments is our biggest contribution to society. Over and above this, we believe we have a responsibility to help patients access these life-altering treatments. We are delighted to introduce a new initiative in our Access to Brain Health strategy - the product donation partnership with IHP, which will benefit some very vulnerable families.

With this sustainability report, we announce a new science-based climate target. It has been rewarding to watch our carbon emissions go down, driven by our long-term action plan initiated over a decade ago. Reports back from our production and research sites around the world demonstrate the tremendous progress we continue to make in pursuing these goals.

With our new, ambitious climate target, our Executive Management team will expand the work we do across our value chain, in collaboration with all our partners and suppliers and we will ramp up our employee engagement on climate action.

We are also reporting on activities to train and support our employees to do the right thing as a responsible business. At Lundbeck, we are grounded in our belief that we must act with integrity and respect in everything we do. It is the best business decision every time. Over the years - and again in 2020 - our stakeholders have rewarded us with strong trust ratings.

Last year we introduced a company-wide Diversity & Inclusion Forum. As much as we need a global and cross-functional working organization, we also need a diverse and inclusive one too. It has been demonstrated time and again that innovation and creative solutions to complex problems are better driven by diverse teams. Diversity is not only the right thing to promote from a social aspect or a community aspect, but it is the right thing to do for business. Only when every

person can bring their full experience to bear on the challenges we face in discovering new medicines, will we succeed. As a company, we continue to stand against all forms of discrimination and stand for creating a workplace where every person is respected.

At Lundbeck, we believe that we can only succeed if we can build our business in a sustainable way. We are proud of our progress and hope that you will find this Sustainability Report inspiring!

Deborah Dunsire

President and CEO of Lundbeck

"Diversity is not only the right thing to promote from a social aspect or a community aspect, but it is the right thing to do for business"

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