Idorsia : Sustainability Report (5.7MB)

Sustainability Report

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23ANNUAL REPORT

More drive -

For a better future

Contents

• More drive -
  For a better future
  Advancing science and healthcare
  People and society Environment
  Compliance and business ethics
  Appendices

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Further parts of the

Idorsia Annual Report 2023

	Business				Financial
	Report				Report
	20									20
	23									23

	Governance				Compensation
	Report				Report
	20									20
	23									23

Contents

More drive -

For a better future

Advancing science and healthcare

People and society

Environment

Compliance and business ethics

Appendices

Contents

		04	Letter from the Chairman of the Board
		06	About Idorsia
		07	Our purpose
		08	Our value chain
		10	Sustainability governance
2	More drive -	12	Enterprise risk management
For a better future	13	Material topics and impacts
		18	Innovative research and development
		21	Partnerships
17	Advancing science	22 Commitment to transparency
and healthcare	23	Access to medicines
		26	Employee welfare and engagement
25		36	Diversity, equity & inclusion
People and society	40	Local communities
		43	Energy
		45	Emissions
41		46	Waste management
Environment	49 Water management
		53	Policies
		59	Product safety & quality
51	Compliance and	62	Supply chain
business ethics	64 Human rights
		66	Appendix 1: About this report
		67	Appendix 2: GRI content index
		69	Appendix 3: Child labor and conflict minerals due diligence
65		70	Appendix 4: Task force on Climate-Related Financial Disclosures
Appendices		(TCFD) assessment

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We are building Idorsia with a long- term focus, and we run the company in a responsible and sustainable way.

Mathieu Simon

Chairman of the Board

Dear shareholders,

We are pleased to publish Idorsia's first Sustainability Report, in line with the requirements of the newly enacted Swiss legislation on non-financial reporting. Idorsia supports the government's endeavors

to prioritize and promote sustainable practices by Swiss companies, and to ensure transparency on non-financial matters, such as businesses' impact on the environment, people and society as a whole.

This Sustainability Report has been approved by Idorsia's Board of Directors and will

be subject to a consultative vote by our shareholders. It reflects the current status of our sustainability efforts, which are aligned with Idorsia's strategic priorities and overall purpose.

Our sustainability roadmap was developed at the company's founding in 2017, and we continue to expand our reporting each year to meet the evolving expectations of stakeholders on environmental, social and governance (ESG) matters. ESG targets represent one of the four groups of global goals that the Board of Directors approves, monitors and assesses on an annual basis. The assessment of these goals directly contributes to the performance and recognition process that determines employees' annual bonus payment, if applicable.

We regularly consult our key stakeholder groups on our material topics, and in 2023 we updated our materiality analysis to align with the Global Reporting Initiative (GRI) 2021 standards. In this report, you will find updates on the most significant areas of Idorsia's impact, as identified by our stakeholders.

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Contents

• More drive -
  For a better future
  Advancing science and healthcare
  People and society Environment
  Compliance and business ethics
  Appendices

In 2023, it was necessary to implement several measures to adapt our company to the challenges of the current environment. We sold our operating businesses in the Asia-Pacific region (excluding China) and reduced our workforce to approximately 900 employees worldwide - both measures aimed at giving the company more time to create sustainable value.

We also strengthened our innovative portfolio by reacquiring the worldwide rights to aprocitentan - the first oral anti- hypertensive therapy which works via a new therapeutic pathway to be approved in almost 40 years. We have expanded access to our insomnia therapy QUVIVIQ™, which has demonstrated an outstanding safety and efficacy profile, by securing reimbursement from several significant payors in the US and by launching in several markets across the EU. We have continued to drive progress with our rich pipeline of late-stage assets, giving us strategic flexibility on our path to sustainable value creation. However, given the financial challenges that Idorsia is facing, our sustainability efforts are tempered

by constraints on our ability to invest in new initiatives, collect data and monitor our impact, as well as the staff reductions mentioned above.

Idorsia remains committed to ensuring the long-term sustainability of our company - both in terms of delivering value for our shareholders and addressing the ESG issues that matter to our stakeholders more broadly. Since Idorsia's founding, we have substantially reduced our carbon emissions,

and - given our global and evolving footprint

• climate-relatedrisks have now been added to our enterprise risk management process.

We are well aware of the increased focus on human rights, especially child labor and conflict minerals, in the supply chain, and we share these concerns. Our assessment of our own operations in line with Swiss regulations showed that we are exempt from detailed risk evaluation for conflict mineral use, as the company's imports of the relevant minerals do not exceed the thresholds specified in the legislation. Our assessment of the company's supplier base also indicated a low risk in relation to child labor. Nonetheless, we will continue to enhance screening and monitoring of our suppliers, and will remain vigilant so as to avoid any form of human rights abuses in our supply chain.

We believe that our core responsibility to our stakeholders and society in general is to deliver on our purpose of helping more patients with innovative treatments, and we remain committed to achieving this in a responsible manner.

Sincerely,

Mathieu Simon

Chairman of the Board

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About Idorsia

Contents

• More drive -
  For a better future
  Advancing science and healthcare
  People and society Environment
  Compliance and business ethics
  Appendices

Headquartered in Switzerland - a European biotech hub - Idorsia is a high-potential biopharmaceutical company, specialized in the discovery, development, and commercialization of innovative small molecules, with the aim of transforming

the horizon of therapeutic options.

We began our operations after demerging from Actelion following its acquisition by Johnson & Johnson in 2017, so while we may be young on paper, we have a 25-year heritage of drug discovery, a broad portfolio of innovative drugs in the pipeline, and an experienced team.

Although Idorsia is currently a loss-making company, it aims to achieve sustainable profitability.

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Our purpose

Contents

• More drive -
  For a better future
  Advancing science and healthcare
  People and society Environment
  Compliance and business ethics
  Appendices

The purpose of Idorsia is to discover, develop, and commercialize innovative medicines to help more patients. We have more ideas, we see more opportunities, and

we want to transform the horizon of therapeutic options.

Delivering on our purpose is our core responsibility to our stakeholders and to society. We are committed to achieving this in an economically, socially, and environmentally responsible manner.

We take our responsibility seriously and seek dialogue with all our stakeholders to find out what really matters to them, through efforts such as our materiality assessment, our sustainability survey, and stakeholder- specific engagement activities.

As Idorsia becomes a commercial company and expands its geographical reach - adding complexity to our organization and increasing our impact on many fronts - our commitment to sustainability remains as important as ever.

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Our value chain

Contents

• More drive -
  For a better future
  Advancing science and healthcare
  People and society Environment
  Compliance and business ethics
  Appendices

Our value chain begins with intensive research, where we explore the function of proteins, characterized by the way they work, which have not previously been targeted. The aim is to discover drugs which can lead to new treatments for patients. Following the drug discovery phase, the selected molecule must be comprehensively studied to demonstrate clinical safety and efficacy. With successful clinical studies demonstrating a compound's safety and efficacy in hand, we must then navigate the regulatory review and marketing authorization process. Regulatory approval is a key milestone, but our treatments can only reach patients if our products are successfully launched by a commercial organization - completing the journey from bench to bedside. Our approach to launch starts long before approval, with the global product strategy - a roadmap designed to accelerate our affiliates' product launch efforts, while also providing a consistent foundation across the world. This value chain model underscores our commitment to advancing patient care and improving lives at every stage of the process.

Our value chain and supplier base will continue to grow as our development compounds are used for a wider range of target diseases, our products become commercially available in more markets, and our medicines reach more patients. As this transformation occurs, Idorsia will continue to focus on creating positive impact and minimizing or mitigating any negative impacts throughout the company's value chain.

We have a broad, diversified, and balanced portfolio, which covers multiple therapeutic areas and includes one marketed product, QUVIVIQ, our innovative treatment for chronic insomnia disorder.

Idorsia procures raw materials, packaging materials, products, and services from around the world. We are committed to working with third parties who embrace the same values and ethical principles as Idorsia. We expect our suppliers to engage in sustainable practices and to respect regulations set out by health and other authorities. We always aim to be open and transparent regarding our company's impact on the environment, economy, and society. This includes the impact of our supply chain. We continue to seek an open dialogue with all stakeholders, including suppliers.

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Contents

• More drive -
  For a better future
  Advancing science and healthcare
  People and society Environment
  Compliance and business ethics
  Appendices
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Contract Research

Organizations

Outside Idorsia	Suppliers of General
	Goods and Services

Inside Idorsia CorporateFunctions

Research

Manufacturing

Use of Drugfor Research and Clinical Trials

Marketing

& Sales

Clinical

Development

Contract Sales

Organization

Healthcare

Providers

External Product Manufacturers

Sustainability governance

Jean-Paul Clozel

Chief Executive Officer

From the beginning, Idorsia's leadership has emphasized that sustainability is central to how we define our success. The company was founded with a strong governance framework in place, including a broad range of policies, standard operating procedures, and guidelines to drive a culture of integrity.

Our commitment to sustainability has been reinforced over the years. Furthermore, with our transformation into a commercial company, we have expanded oversight, employee training, and other measures to ensure that our business is conducted ethically and in line with relevant legal and regulatory requirements in all the markets in which we operate.

"We are building Idorsia with a long-term focus and ambitious aspirations. We will run the company in a responsible and sustainable way."

Jean-Paul Clozel

Idorsia's CEO, on the establishment of the company

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