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Sustainability Report 2023/2024
SCHOTT Pharma - Sustainability Report 2023/2024
Introduction
Doing business responsibly
Responsibility for our employees
Social responsibility
Environmental responsibility
Looking ahead
Sustainability at a glance
For us, sustainability is a cornerstone of our strategy and our corporate responsibility. We are committed
to making a meaningful contribution to a viable economic, social and environmental development.
100%
42%
sites certified for ISO 14001
share of women in our workforce
(environmental management)
and ISO 45001 (occupational
health and safety management)
60+% 65+
reduction in CO2-eq Scope 1 and 2
nationalities in our workforce
emissions since 2019 (market-based)
2
SCHOTT Pharma - Sustainability Report 2023/2024
Introduction
Doing business responsibly
Responsibility for our employees
Social responsibility
Environmental responsibility
Looking ahead
Table of contents
Introduction
Letter to the stakeholders
4
About this report
6
About SCHOTT Pharma
8
Our sustainability management
13
Our sustainability strategy
16
Doing business responsibly
26
Fair business practices
28
Sustainable Procurement
34
Cyber security
39
Responsibility for our employees
41
Diversity, equality and inclusion
43
Workforce attraction, development, and retention
50
Occupational health and safety
56
Social responsibility
61
Product quality
63
Resilient supply
68
Environmental responsibility
73
Greenhouse gas emissions and energy consumption
79
Waste along the value chain
91
Water management
99
Looking ahead
104
GRI-Index
110
Imprint
117
Doing business responsibly
We are committed to responsible business conduct and good governance.
26
Table of contents
Chapter beginning
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Responsibility
for our employees
We promote the physical and mental well-being of our employees.
41
Social responsibility
We are dedicated to fostering social development and human rights.
61
Environmental responsibility
We pursue ambitious climate and environmental protection goals.
73
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SCHOTT Pharma - Sustainability Report 2023/2024
Introduction
Doing business responsibly
Responsibility for our employees
Social responsibility
Environmental responsibility
Looking ahead
Andreas Reisse (CEO) Dr. Almuth Steinkühler (CFO)
"At SCHOTT Pharma, sustainability
is an essential part of our company
history and culture. For us, financial
success is inseparably linked to
social and environmental respon-
sibility - always being transparent
about our actions and impacts."
Andreas Reisse
Letter to the stakeholders
Dear readers,
GRI 2-22
Our mission is to develop solutions grounded in science, ensuring that medications are safe and easy to use for people around the world - because human health matters. We firmly believe that innovation can make a vital contribution to protecting and promoting health globally. After all, 25,000 injections per minute can be delivered worldwide thanks to our products.
Improving peoples' lives is a value instilled in our company by our founders and has been a vital element of our organisational culture until today. This is why we remain committed to playing our part in the fight for global health, also in times of unstable political and economic conditions. We are proud to say that, despite a challenging environment, we achieved a strong performance in the fiscal year 2024. On the one hand, we have been able to capitalise on pharma trends such as the rise of homecare applications and GLP-1 drugs used to treat diabetes or obesity and are ideally positioned to tap into this potential. On the other hand, we were able to further expand our global production network: We opened and successfully qualified a new state-of-the-art production site for prefillable glass syringes in Hungary and installed equipment and production lines at our new site in Serbia. At the same time, we have been relentless in our efforts to be a driver of sustainable transformation in our industry, together with our partners along the supply chain. In the spirit of SDG 17 ("Partnerships for the goals"), we are working with suppliers and customers to make meaningful change, jointly pursuing the continuous reduction of emissions and waste.
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SCHOTT Pharma - Sustainability Report 2023/2024
Introduction
Doing business responsibly
Responsibility for our employees
Social responsibility
Environmental responsibility
Looking ahead
In the reporting period, we introduced the application of advanced pharmaceutical glass tubing called FIOLAX® Pro. This revolutionary borosilicate glass tubing was developed by SCHOTT Tubing and will be manufactured in the first climate-friendly electric melting tank. The switch from an oxy-fuel technology based on natural gas to an electric melting technology will enable us to significantly reduce our cradle-to-gate emissions. In combination with green electric- ity, this allows, for example, emissions for typical glass vials to be cut by approximately 50%.
We have also been relentless when it comes to our downstream supply chain. We introduced a new nest that holds 160 prefillable polymer syringes, marking an increase of 60 syringes per nest while keeping the same outer dimensions. This breakthrough underlines our strong engineering power and we have been able to ensure seamless integration with high-speed filling lines. The combination allows pharma companies to cut the Scope 3 emissions per syringe by 17% while increasing the speed of their filling lines, maintaining high quality and reducing waste at the same time.
Partnership innovation has also been the key ingredient of another major effort concerning emissions and waste reduction. Together with partners and cus- tomers, we successfully piloted closed-loop recycling of single-use trays for the supply of primary packaging goods. Our results show how trash containers filled with single-use plastic packaging can be transformed into future material sources, cutting greenhouse gas emissions per tray by up to 50% when using 70% recycled content compared to using single-use trays from virgin polymer.
Forming alliances for sustainable development also came into play in the truest sense of the word in another highlight we would like to point out. Together with our Alliance to Zero partners, we developed a new packaging concept for prefilled syringes that reduces plastic and packaging waste. This secondary packaging concept transfers the functionality of blister packaging to the syringe-label -cardboard box combination. Following this approach, it is feasible to increase
pallet-packing density by up to 25% and reduce the CO2 footprint of the secondary packaging by more than 50%.
These are a few selected highlights in our encompassing efforts to be a social and environmental responsibility leader in our industry and beyond. In the following report, we provide a much wider picture of what we have done and what we have achieved to drive sustainable development.
None of this would have been possible without our SCHOTT Pharma team. In a year of tremendous challenges, they never stopped innovating, creating and developing to deliver solutions promoting human health. We would like to thank them for their continuous commitment. By keeping people at the heart of every decision we make and every action we take, we aim to build a better future, together.
Sincerely,
Dr. Almuth Steinkühler (CFO)
Andreas Reisse (CEO)
"We aim to make a lasting positive impact on sustainable development. With our workforce and partners we strive to transform our operations and support change across our entire industry."
Dr. Almuth Steinkühler
5
SCHOTT Pharma - Sustainability Report 2023/2024
Introduction
Doing business responsibly
Responsibility for our employees
Social responsibility
Environmental responsibility
Looking ahead
About this report
In this Sustainability Report, SCHOTT Pharma reports on its sustainability strategy, activities and progress in accordance with the GRI standards and a focus on its material topics. The report also contains information on how sustainability is firmly anchored in the company culture and organisation, reflected by the respective responsibilities, structures and processes.
GRI 2-2/-3 Reporting period and scope
The report covers the fiscal year 2024 which ranges from October 2023 to September 2024 and is available in English to ensure access for SCHOTT Pharma's global stakeholder com- munity. Our non-financial declaration, as required by the respective legal provisions, is issued in German and English as part of the Annual Report. To ensure completeness and suitability of the information presented, this Sustainability report has been prepared in accordance with GRI Universal Standards 2021. Consistent with GRI provisions on boundary setting, the data in this report covers all of SCHOTT Pharma's entities1 over which it has operational control. Sales offices are considered in scope with respect to employment-related disclosures. Regarding all other disclosures, they are excluded due to immateriality. Our joint ventures in Italy and India are considered out of scope since SCHOTT Pharma does not have operational control.
1 These are: SCHOTT Pharma AG & Co. KGaA, SCHOTT Igar Glass, SCHOTT France Pharma Systems SAS, SCHOTT Pharma Brasil Ltda., SCHOTT Envases Farmaceuticos SAS, SCHOTT Pharma Schweiz AG, SCHOTT de Mexico, S.A. de C.V., SCHOTT Hungary Kft., SCHOTT Pharmaceutical Packaging OOO, SCHOTT Envases Argentina S.A.,
SCHOTT Pharmaceutical Packaging (Zhejiang) Co., Ltd., SCHOTT France Pharma SAS, SCHOTT Pharma USA, Inc.
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SCHOTT Pharma - Sustainability Report 2023/2024
Introduction
Doing business responsibly
Responsibility for our employees
Social responsibility
Environmental responsibility
Looking ahead
Reporting principles and assurance
The Board of Management of SCHOTT Pharma has tasked the sustainability team in collaboration with subject matter experts to conduct, guide and oversee the compilation of the information in this report to the best of their knowledge and free from material errors or omissions, as concerns the business activity itself, the process of gathering and selecting the information provided, the nature of the information as well as the measure- ment, calculation or estimation methods applied.
To determine which sustainability topics are material for SCHOTT Pharma and its stakeholders, the sustainability team, together with external support, performed a comprehensive materiality analysis in 2022, which has been thoroughly documented and is presented in the chapter on our sustainability strategy. In the opinion of SCHOTT Pharma, the information presented on this basis is balanced, appropriate and conclusive in relation to the material topics. For the fiscal year 2024, the SCHOTT Pharma Board of Management conducted a review of the materiality analysis. Together with the sustainability team, it was determined that the material topics identified still provide an accurate representation of the business reality this report seeks to illustrate.
SCHOTT Pharma also issues an Annual Report (separate docu- ment) for the fiscal year 2024. The Annual Report encompasses a non-financial declaration as required by the CSR Directive Implementation Act (CSR-Richtlinie-Umsetzungsgesetz, CSR- RUG). The non-financial declaration, as part of the separate Annual Report, was audited by EY GmbH & Co. KG Wirtschafts- prüfungsgesellschaft in a limited assurance engagement based on the "International Standard on Assurance Engagements 3000: Assurance Engagements Other than Audits or Reviews of Historical Financial Information" (ISAE 3000).
The following GRI disclosures were included in our separate non-financial-declaration within the Annual Report and thereby subject to audit: 302-1, 302-3, 303-3, 305-1, 305-2, 305-3, 306-3, 401-1, 403-9, 405-1. Reference to these GRI disclosures made in this report are based on audited contents of the separate non-financial declaration. However, this standalone report and all additional GRI disclosures not featured in the non-financial declaration were not subject to the audit performed on the non-financial declaration.
As SCHOTT Pharma seeks to provide transparency about its plans and objectives, this report contains forward-looking statements that reflect the management's current views with respect to future events. Such statements are subject to risks and uncertainties that are beyond SCHOTT Pharma's control, including economic and market developments, political conditions as well as governmental action and regulation. Should these risks materialise, uncertainties arise, or if the assumptions underlying any statements prove to be incorrect, actual outcomes may differ from those expressed or implied in these statements.
The report is available as a PDF and can be accessed on SCHOTT Pharma's website. To facilitate easier reading in accordance with GRI standards, the report includes a GRI Content Index at the end.
Point of contact
For questions on this report or SCHOTT Pharma's sustainability activities, please contact: [email protected]
GRI 2-4/-5 GRI 3-1
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SCHOTT Pharma - Sustainability Report 2023/2024
Introduction
Doing business responsibly
Responsibility for our employees
Social responsibility
Environmental responsibility
Looking ahead
About SCHOTT Pharma
GRI 2-1/-6 For SCHOTT Pharma, creating value sustainably means combining economic success with social and environmental responsibility. Being a company with a tradition that goes back more than a hundred years, it is in our DNA to think and act in the long term. As a globally leading manufacturer of products that are essential for human health, responsibility for their quality, patient safety and availability is a paradigm for us. But responsibility means more to us than that. We are convinced that the sustainable success and future viability of our company not only depend on high quality and innovative products but also on fairness towards all our stakeholders and the protection of our natural environment.
Our value creation and portfolio
We are a global market leader in the development and production of a wide range of advanced drug containment solutions and delivery systems for injectable drugs supplied to the pharmaceutical and biotechnology industries. SCHOTT Pharma is the global number one for polymer syringes, ampoules and vials, the global number two for cartridges and the global number three for glass syringes.
Our pre-fillable syringes, cartridges, vials and ampoules are critical components in our customers' drug manufacturing and distribution processes as even the most advanced injectable drugs cannot reach patients if not packaged safely. For the safe storage and transport of injectable drugs, we supply our customers worldwide with drug containment solutions and delivery systems in pre-sterilised or non-sterilised form, depending on our customers' needs.
Our solutions have helped provide injectable drugs to patients around the world for more than a century and enable the delivery of over 25,000 injections per minute worldwide on average. Globally, more than 75% of new biologics (i.e. drugs produced from living organisms or containing components of living organ- isms) were stored in and delivered through our containment solutions and delivery systems during our previous fiscal year. Precision manufacturing methods and strict inspections ensure that our products are of high quality.
Our product portfolio is grouped into two reportable segments. The reportable segment "Drug Containment Solutions" (DCS) includes the operating segments "Bulk Solutions" and "Sterile Solutions". The reportable segment "Drug Delivery Systems" (DDS) includes the operating segments "Polymer Solutions" and "Glass Syringes". We also provide services and analytics for the pharmaceutical and biotechnology industries in drug containment and delivery. Our services range from developing novel
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SCHOTT Pharma - Sustainability Report 2023/2024
Introduction
Doing business responsibly
Responsibility for our employees
Social responsibility
Environmental responsibility
Looking ahead
SCHOTT Pharma employs over 4,600 scientists, pioneers and problem solvers in North America, Europe, Asia and Latin America
own operations joint ventures
solutions for drug containment and delivery systems to performing analytical tests and optimising fill-and-finish processes as well as providing sustainability and regulatory support.
Our DCS product portfolio offers customers a wide range of sterile and non-sterile standard and high-end solutions to store drugs safely. Glass vials provide safe storage of injectable drugs due to their high chemical resistance, which limits interactions between liquid drug formulations and containers. Glass cartridges dispense drugs in accurate doses for any medical sit- uation, from treating emergency victims (e.g. natural disasters) to self-administration by diabetes patients and offer safe and simple drug delivery. Glass ampoules ensure the safe storage of a wide variety of essential drugs, including painkillers, inflammation inhibitors, emergency drugs and anaesthetics, and of essential drugs and diluents for lyophilised applications.
Our DDS products are characterised by enhanced functionality and provide our customers with systems for delivering drugs safely. The DDS portfolio comprises pre-washed and pre-sterilised syringes that are ready-to-use. The pre-sterilised syringes made of glass or polymer not only offer highly stable, long-term storage solutions for drugs but also safe and convenient delivery systems for healthcare professionals and patients. As the combination of a storage container and injection device in a single system requires fewer manual steps upon administration compared to conventional drug packaging, the risk of medical errors and infections is considerably reduced. This plays a vital role in the safety of healthcare professionals and patients while at the same time significantly reducing drug waste.
Since we try to be as close to our customers around the world as possible, we have operations in the following countries: Ger- many, Switzerland, Russia, Hungary, France, Serbia, USA, Mex- ico, Brazil, Colombia, Argentina, Indonesia and China. The site in Serbia was opened during fiscal year 2024 and will start commercial production within the next fiscal year.
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SCHOTT Pharma - Sustainability Report 2023/2024
Introduction
Doing business responsibly
Responsibility for our employees
Social responsibility
Environmental responsibility
Looking ahead
GRI 2-1/-9/ -10/-11/-15
Our company structure and governance
SCHOTT Pharma is constituted as a KGaA with a German stock corporation as its sole General Partner. It is the parent company of SCHOTT Pharma Group. The company is governed by its Articles of Association (Satzung) and the general provisions of German corporate law, particularly the German Stock Corporation Act and the German Commercial Code.
A KGaA's corporate bodies are its General Partner (Komple- mentärin), its Supervisory Board (Aufsichtsrat) and the General Shareholders' Meeting (Hauptversammlung). Unlike a German stock corporation in which the Supervisory Board appoints the Management Board, the Supervisory Board of a KGaA has no influence on the appointment of the managing body of the Gen-
SCHOTT AG
100% shares
SCHOTT Glaswerke Beteiligungs- und
Export GmbH (selling shareholder)
votes in
77% shares
GP General Shareholders' Meeting
Free float
23% shares
eral Partner (and hence the management body of the KGaA) pursuant to statutory law. We currently have only one general partner, but a KGaA may have one or more general partners who conduct the business of the KGaA. The removal of a general partner from office is subject to very strict conditions and, under statutory law, does not fall within the competences of the KGaA's Supervisory Board. General partners may purchase shares of the KGaA or provide equity without being required to do so.
Our sole General Partner, SCHOTT Pharma Management AG, is indirectly wholly owned by SCHOTT AG and solely responsible for the management of the company. SCHOTT Pharma Management AG is a German stock corporation with a two-tier sys- tem. It consists of the Management Board and the Supervisory Board. Together with the General Partner's General Sharehold- ers' Meeting, they form the corporate bodies of the General Partner.
100% shares
elects
GP Supervisory Board
appoints, monitors and advises
GP Management Board
manages
SCHOTT Pharma Management AG
(general partner)
monitors and
advises
manages
vote in
General Shareholders' Meeting
elects1
Supervisory Board
SCHOTT Pharma AG & Co. KGaA
(company)
1 General Shareholders' Meeting only elects shareholder representatives on the Supervisory Board
10
Disclaimer
Schott Pharma AG & Co. KGaA published this content on December 12, 2024, and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on December 12, 2024 at 06:15:11.918.