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The abbreviation ESG stands for Environmental, Social and Governance. These are non-financial factors that are primarily used by investors in their investment decisions. They also refer to the sustainability impacts and contributions of a company and its associated risks and opportunities.
After all, sustainability is more than just a trend - companies that identify and address their ESG risks at an early stage are exposed to lower (financial) risks and can proactively prepare for regulatory tightening. That's why we would like to take this opportunity to provide you with comprehensive and transparent information about our activities and progress in the area of ESG.
Here you will find detailed information on our ESG projects and goals. Because the world is changing and we want to play an active role in shaping this change - not just be part of it, but lead the way and achieve more!
Our ESG strategy is based on a comprehensive materiality analysis in which we initially determined the ESG issues most important to CHEPLAPHARM from a corporate and stakeholder perspective in 2021 and 2022. Based on this, we further developed and selectively sharpened our ESG strategy in 2022. In the process, the following six ESG focus topics were defined as part of strategy workshops in the Executive Board circle and with specialist departments:
CHEPLAPHARM has a broadly diversified and attractive portfolio of 150 different established pharmaceutical brands and niche products. We ensure the security of supply of many vital medicines - and our patients place correspondingly great trust in us. Our products have always been subject to strict quality and safety criteria, which are checked in numerous internal and external audits and for which a large number of detailed regulations are already available, anchored in internal documents. The initial aim here is therefore to further increase the transparency of the specifications, measures and statistics already in place at CHE-PLAPHARM. Further information on the topics of product safety and quality can be found on p. 17 ff. of our current ESG Report 2022.
The shortage of (highly) qualified specialists is currently on everyone's lips and poses major challenges for companies. In order to further develop our existing employees and retain them in the long term, but also to attract further talented employees in the future, we have launched various projects as part of our "CP 2025" transformation program. Accordingly, the overriding goal in this area is to further strengthen our attractiveness as an employer. Further information on our workforce and corporate culture as well as the topics of careers and further education can be found on p. 20 ff. of our current ESG Report 2022.
As a company with a highly scalable asset-light business model, we have outsourced the manufacturing of our products to a diversified network of more than 125 CMOs and suppliers. By regularly reviewing conditions along our supply chain, we not only gain visibility into sustainability in this very important area for us, but also gain additional leverage to ensure the highest quality and safety of our products. For this reason, we have recently expanded the survey of our suppliers once again and evaluated the results in greater detail than in previous years in order to obtain an even more precise picture of the influence our suppliers have on the environment and social issues. Further information on our value chain can be found on p. 10 ff. of our current ESG Report 2022.
Even though our direct impact on the environment is low due to our asset-light business model with outsourced production and sales processes, we also want to make our contribution to climate and environmental protection. A key milestone in this context was the company-wide introduction of central energy management in 2022, which allows us to regularly assess and continuously improve our energy-related performance. The energy management system was certified to ISO 50001, enabling us not only to report more accurate consumption data but also, for the first time, the much sought-after Scope 2 CO2 emissions information. Further information on the topics of environmental and climate protection can be found on p. 12 ff. of our current ESG Report 2022.
To ensure good and sustainable corporate governance, we at CHEPLAPHARM rely on adequate supervisory structures as well as a comprehensive and effective compliance management system. We are convinced that we can only be sustainably successful with the trust of our ex- and internal stakeholders. Therefore, we are continuously working to further improve our supervisory and compliance structures in order to strengthen and secure the trust of our stakeholders in our company in the long term. Against this background, we have already implemented numerous internal policies and practices on which we will report even more transparently in the future. Further information on the topics of compliance and corporate governance can be found on p. 25 ff. of our current ESG Report 2022.
More information on these six ESG focus topics can be found in our latest ESG Report 2022.
Our sustainability strategy is based on the global Sustainable Development Goals (SDGs) defined by the United Nations as part of the 2030 Agenda. As part of our materiality analysis, we identified 4 of the SDGs as particularly important, with which we want to make a positive contribution.
As a pharmaceutical company, CHEPLAPHARM makes an important contribution to people's health and well-being. Of central importance is the issue of security of supply. Thanks to our broadly diversified network of more than 125 CMOs and suppliers, the establishment of second sources and sophisticated storage processes, it is possible to provide a sufficient number of medicines in many countries around the world at all times. In addition, CHEPLAPHARM's products meet high regulatory requirements for safety and quality.
As one of the largest employers in Greifswald, we are aware of our special responsibility for the region and its people. In this context, it is very important to us to continuously promote and train our employees and, in particular, to bind them to our company in the long term. In addition, we cooperate with the renowned universities in Greifswald and Rostock, participate in the promotion of the Deutschlandstipendium at the University of Rostock and offer internships to students.
CHEPLAPHARM has a highly scalable asset-light business model. We have outsourced the manufacturing of our products to a diversified network of more than 125 CMOs and supplier:s, mostly located in Europe. . Our opportunities for influence therefore lie primarily in our supply chain, which we regularly review and analyze with a view to various sustainability issues. We aim to ensure that the processes along our value chain are designed to be as energy- and resource-efficient as possible. An important element in this process is our Code of Conduct for Suppliers, in which we define clear requirements and guidelines and thus already proactively initiate sustainable developments in our value chain.
Although our direct environmental footprint is small due to our asset-light business model with outsourced production and sales processes, we also want to make our contribution to climate protection. In this context, we were able to achieve a significant milestone in 2022 with the introduction of a central energy management system. The new energy management system was certified in accordance with ISO 50001 and allows us both to regularly assess and continuously improve our energy-related performance and to report precise CO2 data for Scope 2 emissions for the first time. In addition, our current new building project at our headquarters in Greifswald underscores our commitment to mitigating climate change. Here, a new ultra-low-energy building is being built that meets the latest EG40EE energy standard and covers more than 55% of its own energy requirements with self-generated energy.
We try to answer all your questions about ESG transparently on our website and in our comprehensive ESG reports. If you still have any questions, please feel free to contact our ESG officers Stephanie Lemke and Fabian Franke at any time.