Making it Better Sustainability and Corporate Social Responsibility at Accord

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Making it Better: Sustainability and Corporate Social Responsibility at Accord

Introduction

Corporate Social Responsibility at Accord

We think differently at Accord. Our approach means we’re always looking for new and better ways to serve patients, our customers, our communities and our world. Corporate social responsibility is fundamental to our company purpose and our success as an organisation. We care about the impact our activities have on the world around us.

Our commitment and contribution to the environment and to society is evident in every aspect of what we do as a pharmaceutical company. We believe this approach contributes towards our business growth and helps us deliver on our mission to ‘make it better’. It’s also the right thing to do.

Every employee at Accord is aligned with and committed to offering quality products that comply with all internal and external safety measures, best practices, compliance policies and guidelines. But more than that, all of our employees are committed to reducing our impact on the environment and increasing our contribution to our local communities and wider society. To do this, we embrace talent, innovation and diversity, providing opportunities for our teams in safe, inclusive and fair workplaces.

Accord supports a wide range of good causes and company-led initiatives that make a difference to the environments and communities in which we live and work. We align ourselves with partners who share our principles to deliver change that:

• Improves access to essential treatments • Engages with and supports communities • Addresses environmental challenges • Promotes fair, inclusive and safe working conditions

Accord: we make it better

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Making it Better: Sustainability and Corporate Social Responsibility at Accord

Corporate Goals

Corporate social responsibility is fundamental to our company purpose and our success as an organisation. We care about the impact our activities have on the world around us and as a company we commit to:

Our environmentWe aspire to significantly reduce our impact on the environment here at Accord; across all of our facilities. Each year we set organisational initiatives to minimise our environmental footprint.

Our goals:

1. By thinking differently and using a blend of proven and innovative technologies, we aim to reduce our total energy usage and water consumption by 25% by 2025 across our Accord manufacturing sites.*

2. Through carbon reduction projects and utilising renewable technologies, Accord will target carbon neutrality of all our Accord owned sites by 2030.

3. Through educating our staff and conducting internal initiatives we aim to send less than 1% of our waste to landfill and move up the waste hierarchy (i.e. from disposal to recycling to reuse etc) by 2025.

4. We will reduce single use plastic usage across all packing, manufacturing and office sites by 50kg per person by 2025.

* Per ‘000 revenue using base year 18/19 and portfolio of sites.

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Making it Better: Sustainability and Corporate Social Responsibility at Accord

Working with local communities and providing medicines globallyWe aspire to significantly reduce our impact on the environment here at Accord; across all of our facilities. Each year we set organisational initiatives to minimise our environmental footprint.

Our goals:

1. Supporting IHP with our mission to increase patients’ access to life changing medicines and to eradicate the suffering caused by poor access to medicine across the world. Building year on year on more donations made.

2. Creating charitable change by ensuring employees have the time and resources to undertake volunteer and charity work in the local communities that matter most to them.

Our peopleWe aspire to provide a fair, inclusive, diverse, motivating and engaging workplace that is safe, yet dynamic. A place, where everyone has the opportunity to ‘make it better’ and contribute purposefully towards our business aims and goals.

Our goals:

1. We will provide environmental education and project opportunities to selected learning institutions to STEM students engaging with our local communities. We will share best practice across the network from our existing apprenticeship schemes.

2. We will do our utmost to provide a safe working environment with minimal impact on the environment, encouraging all staff to be proactive in risk management.

3. We will focus on safety in our supply chain and exercise our Environment Health and Safety expectations with our suppliers and CDMO partners. We will adhere to the Antimicrobial Resistance (AMR) Framework for our manufacturing/ formulation and packaging sites.

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Making it Better: Sustainability and Corporate Social Responsibility at Accord

We are always looking for ways to improve our products and deliver better patient experiences and outcomes. Fundamental to this is our commitment to diversity that supports our culture of agility and innovation. We employ more than 1,700 people across 35 European countries, attracting the best and brightest technical minds and forward-thinking business professionals. We support and celebrate our high- performing teams with:

• A commitment to the Accord Everyday Behaviours of challenge, connect, commit that underpin our work

• Opportunities for every employee to contribute with purpose

• A safe, regulated workplace

Our Commitments

Minimising our impact on the environment is key to our aspiration to deliver more. We aim to make the most efficient, compliant and responsible use of our resources through the use of our innovative technologies and harnessing of the finest talent. Each year our organisational initiatives seek to reduce our environmental footprint. Accord is committed to reducing our impact on the environment by:

• Adhering to environmental guidelines through our corporate EHS Standards

• Utilising renewable energy sources in manufacturing

• Contributing to tree planting schemes

• Investing in university partnerships and innovation schemes

• Environmental education schemes

Giving back is at the heart of Accord. We understand that we can always deliver more if we work together to support communities and our commitment to charitable giving grows year-on-year. Local partnerships give our teams opportunities to give back to their communities, while our work with International Health Partners (IHP) allows us to support some of the poorest communities around the world. Accord is particularly proud of our:

• Partnership with IHP (International Health Partners)

• Comprehensive programme of volunteerism and fundraising

• Partnerships with patient associations

• Funding of scholarship programmes

• Medicines donation programmes for communities with limited resources

Embracing DiversityCharitable GivingSustainability

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Making it Better: Sustainability and Corporate Social Responsibility at Accord

Accord’s Environmental Commitment

Each year, multi-functional teams across the Accord network collaborate to identify ways we can limit and reduce our impact on the environment.

The resulting programme of organisational initiatives seeks to reduce our environmental footprint in the three key areas of Waste Management, Technological Advancements and Environmental Education. In 2018/19, over 100 projects with environmental benefits have been initiated and completed and we are committed to continuing this vital work.

Technological AdvancementOur commitment to sustainability and reducing our impact on the environment goes beyond adherence to environmental guidelines and legislation. As part of our mission to deliver more for our customers and patients, we produce high-quality affordable products for patients in a sustainable and responsible way. We work closely with external stakeholders to ensure that we are doing all we can to minimise our footprint on the environment. A significant portion of our manufacturing energy requirements come from renewable energy sources, including two wind farms and we contribute to tree planting schemes.

We were nominated for the 2017 ‘Energy Savers of the Year’ awards for our work in our energy savings and reducing our overall carbon footprint. In addition, we were awarded ‘Environmental Project of the Year’ for our work in reducing energy consumption and improving air quality at one of our manufacturing sites.

Our INTAS Matoda and SEZ sites are certified to both ISO 14001 and ISO 45001, our UK Barnstaple manufacturing and packaging site is accredited to ISO 14001 and we are working to achieve this for our remaining manufacturing sites by 2021. In addition, our pioneering ‘Green chemistry’ project has replaced traditional chemical tests with alternative tests that are entirely free of solvents, consumables, chemicals and sample preparation.

Environmental Education Working closely with local educational partners is an important part of our approach. In 2018 we began working with students from Newcastle University, developing projects focused on environmental impact and management. Current themes include water and energy efficiency and waste management, with initiatives being developed and delivered by the students.

Central to our approach is working in harmony with the local community. Delivering more for the environment in ways that benefit and support local communities means our work adds value beyond the immediate environmental benefits and we seek to be seen as positive contributors to these communities.

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Making it Better: Sustainability and Corporate Social Responsibility at Accord

Waste Management

Technological Advancements

Keep Cup: Our ‘Keep Cup’ scheme encourages employees to use a reusable cup as part of our efforts to be a zero-waste provider. We calculated that our Barnstaple site catering teams served over 72,000 cups of coffee a year, many of them in single-use cups. Thanks to the scheme, approximately 75% of drinks are now served in reusable cups, saving 54,000 single-use cups going to waste, with CO₂ savings equivalent to driving a car non-stop for 144 hours.

Everycan Counts: In March 2019 we partnered with a UK non-profitable charity, Community Resource, that provide work opportunities for adults with learning disabilities, to create the Everycan Counts initiative. Community Resource collects and recycles our waste drink cans and recoups the cost of recycling. In the last year, we have recycled the equivalent CO₂ savings of 1,380 television hours.

Save the Trees: Our wood pallet recycling scheme is part of our commitment to zero waste that also helps reduce the number of climate-saving trees being harvested. Across our UK manufacturing sites, we recycle around 10,000 wooden pallets annually, which is equivalent to 1,200 trees. We also

HVAC Optimisation: Our project to improve the efficiency of the air-handling units, (AHUs), at our manufacturing and packaging Barnstaple site involved reviewing the current air flow rates, calculating the actual required flows and rebalancing the systems. All AHUs were fitted with high-efficiency, standardised filters and we have reduced energy consumption by just under one million kWh, reduced filter waste and improved internal environmental conditions such as pressure cascades, temperature control and air quality (reduced particle count). The resulting 63% reduction in energy consumed for the AHUs in packing equates to an emission reduction of 441 tons of CO₂.

LED Lights: As part of our commitment to reducing our energy consumption, we’ve installed around 800 new LED light fittings, along with a communication system, with minimum disruption to a live operational site. This included replacing the Barnstaple site

commissioned plantation of the Nilgiri (Eucalyptus) forest in Matoda as part of our drive to reduce our overall carbon footprint.

Combined Heat and Power Project: As part of our MSc placement scheme with the University of Newcastle Upon Tyne, we have initiated feasibility studies to generate our own electricity and utilise the factory’s waste heat to significantly reduce energy consumption in our Fawdon factory.

INTAS initiatives: Our INTAS sites have implemented numerous initiatives to reduce their impact on the environment. They include the installation of high-pressure reverse osmosis to reduce water consumption, replacing wet scrubbers with dry scrubbers in manufacturing areas, installing PVA Gel technology in the effluent treatment plant to improve efficiency and reduce energy consumption, chemical and water requirements. We have eliminated softeners from water systems to reduce salt in waste water and use fine bubbled membranes within the aeration tanks to improve oxygen transfer and reduce energy usage. We are committed to examining every part of our business to identify ways we can further reduce our impact.

emergency lighting with a smart LED lighting system, linked back to a central head end for automated testing and fault reporting. As a result, energy consumption has been reduced by 610,000 kWh, the equivalent of 276 tons of CO₂.

Chilled Water Upgrade: The implementation of new control technology has reduced energy consumption in our water chilling system. An improved distribution system using energy valves minimises losses and supports better energy management, delivering an energy reduction of 80% and an overall emission reduction of 183 tons of CO₂.

Renewable sources: All of the grid electricity supplied to our UK manufacturing and packaging sites since 2017 has been generated from renewable sources.

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Making it Better: Sustainability and Corporate Social Responsibility at Accord

Environmental Education

Education centres: We work closely with local universities and schools via our manufacturing sites in Barnstaple and Fawdon to educate on the importance of safety, environmental management and sustainability within the industry. Our partnerships with universities such as the University of Newcastle Upon Tyne, and local schools have strengthened our ties to the local community and fostered inspiring projects and initiatives.

MSc Placements: Since 2018, we have supported seven student MSc placements, with projects targeting water resource management, waste management, energy efficiency and environmental management systems. The programme continues to flourish.

Lecture Programme: Our environmental management lecture programme is designed to increase awareness of vital issues and provide top talent with the tools they need to excel. Topics have included pharmaceuticals in the environment, antimicrobial resistance, air emission abatement techniques and the importance of the falsified medicines directive regarding counterfeit drugs.

Disease Awareness Campaigns and Projects: Our Governance Committee work with many charities to define and deliver valuable projects. Across EMENA we support numerous charities ranging from local hospices to national awareness programmes like Cancer Research and World Aids Day. Accord has raised thousands of pounds through its work with these notable charities.

Local Community Projects: We actively encourage employees across the EMENA region to undertake local CSR activities that are important to them and the communities they serve. Our Governance Committee regularly reviews sponsorship and funds to these projects and employees are supported both financially and with time. Outreach to local schools and universities, supporting charities such as the North Devon Hospice with time and resource and supporting community reading schemes are just some of the ways we connect with the communities around us.

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Making it Better: Sustainability and Corporate Social Responsibility at Accord

Accord’s Commitment to Charitable Giving

As a company, we are always looking for ways in which we can improve what we do to deliver more to our customers, patients and communities.

Our business is committed to supporting communities in need around the world, who are affected by poverty, conflict and natural disasters.

Partnership with IHPOur partnership with IHP (International Health Partners) has gone from strength to strength. In the last 18 months, we have donated over nine million individual doses of 20 different medicine products to the EHP programme. access to life-changing medicines strongly aligns with IHP’s aim to eradicate the suffering caused by poor access to medicine and we have been able to use our global supply chains and logistics to help oversee, coordinate and deliver strategic medical donations to partners who can distribute them on the ground and ensure their safe arrival.

We support both disaster response and long-term healthcare programmes, and provide medicines for IHP’s Essential Health Packs (pre-packed kits containing a range of essential medicines that support the delivery of critical primary healthcare in any setting). EHP packs are sent to the World Health Organisation (WHO), Non-Governmental Organisations (NGOs) or directly to medics working in destination countries. By working with organisations who work with groups on the ground in impoverished and war-torn/hard to reach communities we can give back to countries and communities that don’t have access to affordable medicines.

This level of commitment continues, with approximately one in four treatments issued by IHP donated by Accord. Considering our corporate partner is at the forefront of our supply chain’s mind when evaluating excess stock. The provision of long-dated and essential medicines is fundamental to the success of our partnership with IHP.

Local Charity Work In addition to our work with IHP, our employees contribute to a comprehensive programme of volunteering and fundraising supported with time and funds by our Governance Committee. We also give back to our communities through partnerships with

patient associations, support reading schemes and fund scholarship programmes that support talented young people to fulfil their potential regardless of their financial situation.

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Making it Better: Sustainability and Corporate Social Responsibility at Accord

Accord’s Commitment to Embracing Diversity

At Accord we’re always looking for new ways to improve. We pride ourselves on thinking differently from other pharmaceutical companies and central to our ability to do so is our employees. Our culture of innovation and agility is a product of our high- performing teams. Ensuring we create a fair, inclusive, diverse and safe workplace is fundamental to supporting every member of those teams.

Fairness and Equality With over 1,700 employees across 35 European countries, we are committed to providing fairness and equality for employees. We are a company that believes in striving for fairness, inclusion, and above all else, equality for everyone that works for us.

We adhere to all equal opportunities regulations and regularly monitor and review our approach to pay to support the fair treatment and reward of employees, ensuring it is free from bias, including gender. This ensures we harness an inclusive and diverse workforce that is the key to our long-term success and ambitious growth plans. It is also the right thing to do.

Creating a Safe WorkplaceSafety is at the heart of our operations and is a measure of how much we value our employees. We take the huge responsibility of ensuring the safety of our teams very seriously. As a high-tech manufacturing employer, providing a safe and regulated workplace is essential for the well-being of our employees and all our facilities conform to current safety regulations as a minimum. We are delighted that through 2018- 2019 we surpassed one million hours worked without a lost time accident, environmental incident, dangerous occurrence or any other reportable EHS event. This strong safety performance does not happen by accident and is only possible when all levels of the business play their part.

In 2019, following a consultation with employees across the supply chain, we implemented a scorecard system to rate supplier performance against a range of measures including our cGMP standards, environmental

standards, worker safety standards, and business continuity standards. Understanding provisions for the environment and worker protection with regard to active pharmaceutical ingredients (APIs), excipients and pharma packaging is essential to our commitment to work with suppliers whose vision and operational reality is well aligned with our own approach.

Contributing with PurposeAt Accord, innovation is a way of life. We challenge ourselves to think differently and deliver every day, whether that’s with regard to our products, our systems and operations, or our facilities. We do this to ensure more people worldwide receive the medicines they need. This purpose underpins everything we do and informs how we go about it.

Employees at every level of our organisation have the opportunity to contribute purposefully towards our goals. Agility and inventiveness are embedded into our organisational aims and our individual SMART goals; are expressed through our Accord Everyday Behaviours of ‘Challenge’, ‘Connect’ and Commit’. Developing the skills and capabilities of our people is essential to our ability to live our purpose and achieve our goals. This, in turn, means we can deliver more vital, affordable medicines to the national health systems and patients who need them most.