Novartis : Download the Novartis 2030 Environmental Sustainability Strategy

Novartis

Environmental

Sustainability

Strategy

2022

Version: July

CONTENTS | 3

Contents

Introduction

Strategic Objective 1 | Planet

Our net-zero, plastic neutrality, and water sustainability targets delivered

Strategic Objective 2 | Patients

Sustainable products delivered to our patients

Strategic Objective 3 | People

A mindset of sustainability embedded in how we operate

Strategic Objective 4 | Policy

A strong voice influencing the global environmental sustainability agenda

Credit: Acciona

Introduction

Human health and planetary health are intrinsically linked.

Executive	Introduction	Strategic	Strategic	Strategic	Strategic
summary		Objective 1	Objective 2	Objective 3	Objective 4

6 | INTRODUCTION

INTRODUCTION | 7

The link between human and planetary health

Planetary health is about people, patients and the planet. Climate, temperatures, sea level elevation, wind and daylight duration play an important role in disease transmission. Climate change is already causing extreme heat and poor air quality in some areas, which threaten to exacerbate pre-existing health conditions, such as heart failure, lung cancer and respiratory diseases. It is expected that climate

Planet

Extreme weather events More deserts

Increased sea temperatures

Environmental sustainability is central to the Novartis strategy and operating model. Successful delivery of our environmental sustainability strategy will require leadership, innovation, investment and change.

A race we can win

As a leading global medicines company, committed to reimagining medicine to improve and extend people's lives, we are at an important junction on our sustainability journey.

The relationship between global health and planetary health has never been more evident. This symbiotic relationship highlights the importance of delivering our purpose - to reimagine medicine - in a sustainable way.

change will continue to have a profound impact on the most marginalized societies.

Vulnerable populations, living in the most fragile and conflict-affected countries, are disproportionately affected by climate change, leading to humanitarian crises in affected regions1. In addition, an increase in temperature and humidity may cause a proliferation of insects that carry vector-borne diseases, including dengue fever, malaria and Chagas disease.

Novartis is working to understand and anticipate these climate and related risks, to ensure that we continue to discover, develop and deliver lifesaving medicines.

Reduced sea ice

Increased sea levels

Loss of habitat nature

Health

Harmful effects on health

due to increased temperatures More allergies

Increased disease spread including vector-borne disease

New disease transmission patterns

Executive	Introduction	Strategic	Strategic	Strategic	Strategic
summary		Objective 1	Objective 2	Objective 3	Objective 4	1 UNHCR Refugee Agency

8 | INTRODUCTION | OUR ENVIRONMENTAL SUSTAINABILITY JOURNEY

INTRODUCTION | OUR ENVIRONMENTAL SUSTAINABILITY JOURNEY | 9

Our environmental sustainability journey

Signed up to the Climate Pledge to be net- zero by 2040

Novartis is a member of the Ellen MacArthur Foundation which is helping to develop and promote the idea of a

Novartis signed the UN Global Compact's CEO Water Mandate, which mobilizes business leaders to make

Developing a holistic approach

Environmental sustainability has been a central component of the Novartis strategy, with a strong focus on efficiency as the key tool in the early stages of development. Building on our progress to date, this strategy sets out a holistic approach, incorporating four broad strategic objectives to:

• Deliver our net-zero, plastic neutrality and water sustainability targets
• Focus on delivering sustainable products to our patients
• Transform the sustainability mindset across our organization
• Collaborate with industry partners to influence change in our sector

The strategy incorporates climate, waste and water, all of which are interdependent topics. In recognition of the scale of the challenge we face, Novartis has committed to net-zero greenhouse gases by 2040. Further strengthening our commitment to carbon neutrality, plastic neutrality and water sustainability by 2030. Our net-zero target covers all greenhouse gas emissions, in alignment with the SBTi Net-zero Standard. Throughout the rest of this document, the term 'net-zero' refers to net-zero greenhouse gas emissions.

Further details of our targets and progress against those targets are outlined later in the document.

Measuring our value to society

Whereas environmental sustainability has traditionally been seen primarily as a compliance requirement, the global view is shifting. Environmental sustainability is increasingly viewed in the context of value creation and impact. Novartis is measuring its value to society and the environment using the Social, Environmental and Economic (SEE) impact valuation. This measures the overall value to society by assessing the "triple bottom line", the benefits and costs to people, planet and profit. This monetization of SEE impact provides a common currency that improves visibility and comparability.

Climate-related reporting

Novartis has also expressed its support for the Task Force on Climate-related Financial Disclosures (TCFD). This provides a consistent set of voluntary disclosures across industries, which can be adopted by companies to inform investors and other stakeholders about climate-related risks. TCFD will help both companies and financial markets to better evaluate and price those risks. TCFD is reported in the Novartis in Society Integrated Report.

circular economy

progress on six elements of water sustainability

We bring social value through life-saving medicines. In our efforts to treat illness and cure disease, we must also to look after the health of the planet.

Credit: Invenergy

Executive	Introduction	Strategic	Strategic	Strategic	Strategic
summary		Objective 1	Objective 2	Objective 3	Objective 4