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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!
At CHEPLAPHARM, sustainability means acting responsibly — for patients, employees, partners and society.
Our ESG strategy is based on four core values:
As a globally operating pharmaceutical company, we focus on ensuring the long-term availability of established medicines while continuously improving environmental, social and governance standards across our value chain.
In 2024, CHEPLAPHARM updated its materiality assessment in line with the European Sustainability Reporting Standards (ESRS).
The assessment follows the principle of “double materiality”, meaning we evaluate:
The analysis included internal experts, external stakeholders and industry-specific ESG considerations. It forms the basis for our ESG strategy and reporting activities.
Material ESRS sub-themes: S4 Consumers and end-users - Information-related impacts; Personal safety; Social inclusion
Our products are subject to strict quality and safety criteria, which are monitored through numerous internal and external procedures. The aim is to further increase the transparency of the guidelines, measures and statistics already in place at CHEPLAPHARM (see the section on Quality Management and regulatory compliance, p. 23 of our ESG Report 2025) and to maintain a low recall rate of less than one percent of all batches. In addition, it is crucial to us that our distribution partners adhere to ethical marketing criteria for medicinal products - we have already integrated relevant guidelines in line with the WHO´s ´Ethical criteria for medicinal drug promotion´ into our Code of Conduct for Suppliers since 2023.
Key ESRS sub-themes: S1 Own Workforce - Working conditions; Diversity and inclusion
As part of our HR work, we are constantly reviewing measures to ensure we remain in the optimal position to compete for the best talent in the future. To this end, we regularly conduct employee satisfaction surveys and continuously develop our internal communication through appropriate formats. In addition, we implemented a comprehensive remuneration project in 2024. More detailed information on our internal communication, the remuneration project and our flexible and individually tailored working models (e.g. remote working or part-time options) can be found on pages 29–30 of our ESG Report 2025.
Key ESRS sub-themes: E1 – Climate action, E5 – Resource inputs and outputs, and S2 – Labour practices; diversity and inclusion
We again conducted a survey of our suppliers for the financial year 2025 to better understand the impact our supply chain has on environmental and social issues – more information on this can be found on p. 14 of our ESG Report 2025. Furthermore, in 2023 we introduced a risk management software to further strengthen standards within our supply chain. This enables us to assess ESG risks along the supply chain even more comprehensively than before. In addition, since 2024 we have integrated ESG criteria into the selection of new CMOs and suppliers to take sustainability aspects into account at an early stage. In the current financial year, we will continuously update our existing training programs and audits for suppliers and expand them to include selected ESG criteria, so that we can keep an even closer eye on sustainability aspects in our supply chain.
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 in our current ESG Report 2024.
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.
SDG 3 focuses on ensuring healthy lives and promoting well-being for all—an essential priority for any pharmaceutical company. CHEPLAPHARM plays a vital role in supporting global health, particularly through its commitment to supply security.
In addition to meeting legal requirements, CHEPLAPHARM ensures a continuous supply of medicines. This is achieved, amongst other things, through a broad network of more than 180 contract manufacturers and suppliers, the development of alternative supply sources, and advanced warehousing and stock management strategies.
All products meet stringent safety and quality standards. When integrating new products, we match or enhance existing quality levels, including aspects such as ease of use. These efforts are supported by a robust complaints management system, reinforcing our dedication to patient well-being.
As one of the largest employers in Greifswald, CHEPLAPHARM recognizes its responsibility to the region and its people. We prioritize long-term employee development through continuous training, support, and retention initiatives.
Our collaboration with the universities of Greifswald and Rostock includes offering internships, engaging in joint initiatives, and supporting the Deutschlandstipendium scholarship program.
Beyond our workforce, we actively contribute to the local community by sponsoring and donating to regional projects— reinvesting part of our success into the area we call home.
With global consumption on track to require resources equivalent to three Earths by 2050, companies play a critical role in driving sustainable transformation.
Although CHEPLAPHARM operates with an asset-light model— outsourcing production and sales— we don’t want to neglect our indirect environmental impact. We actively promote sustainability across our value chain by setting clear targets for CMOs and suppliers to improve energy and resource efficiency, and to reduce emissions and waste.
We regularly assess our key suppliers on their sustainability performance, and we plan to expand this evaluation to all partners. A major step forward was the introduction of our Supplier Code of Conduct in 2022, which outlines specific environmental and ethical standards for our supply network.
Effective climate protection requires a sustained, long-term commitment. CHEPLAPHARM contributes meaningfully through its supply chain by integrating climate-conscious practices and requiring all suppliers to meet defined climate-related standards—further detailed in our Supply Chain section.
At our Greifswald headquarters, we regularly assess and optimize operations to reduce our environmental footprint. Our commitment is also evident in our new ultra-low-energy office building, completed in late 2023. Designed to meet the EG40EE standard, it consumes less than 40% of the legally allowed primary energy.
Contact
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.
