Responsible Business Highlights Report 2016 · PDF file · 2017-07-03gap, by...

20
Responsible Business Highlights Report 2016 GSK Australia

Transcript of Responsible Business Highlights Report 2016 · PDF file · 2017-07-03gap, by...

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Responsible BusinessHighlights Report 2016

GSK Australia

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The year in highlights

Expanding our graduated approach to intellectual propertyWe expanded our graduated approach toenforcing patents and intellectual property(IP) to widen access to medicines in theworld’s poorest countries. IP protection willnow reflect a country’s economic maturityand every GSK medicine on the WHO’s listof essential medicines will be included inthese changes.

SheStartsGSK Australia kicked off its partnershipwith BlueChilli – the country’s leadingstart-up accelerator - joining forces onSheStarts.

SheStarts is a national program designedto turbocharge female leadership in thestart-up economy and address the gendergap, by championing the role of women intech, leadership and business.

Responding to new diseasesGSK has proposed creating aBiopreparedness Organisation (BPO) –a dedicated, permanent organisationoperating on a no-profit, no-loss basis andfocused on designing and developing newvaccines against potential public healththreats. GSK is actively engaging withgovernments, funders and non-governmentalorganisations to secure funding to enablethe BPO to advance without delay.

Medicines Manufacturing Innovation CentreGSK-Monash partnership strong foundation for new Centre

Through our 2016 financial and in-kind support for the Medicine Manufacturing Innovation Centre, we’re building on seven years’ of successful partnership with the Monash Institute for Pharmaceutical Science and working to maintain Victoria’s global competitive advantage in pharmaceutical manufacturing, by developing key skills and support for commercial products and processes.

At GSK, we are committed to helping people do more, feel better and live longer.

Globally:

Locally:

Our values - patient focus, integrity, respect for people and transparency - are at the heart of every decision we make and we want them and they way that we conduct ourselves to be something that truly differentiates us.

This report highlights key areas of our work across Australia. To find out more about our activities, performance and deliverances read the GSK Annual Report and the Global Responsible Business supplement at gsk.com

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3 Responsible Business Highlights Report 2016 | GSK Australia

Contents

Humanitarian emergency response 9Award for Research Excellence 9Patient advocacy groups 10

ViiV Healthcare launches MyLife+ 10Clinical Studies 10

Our approach transforming our business 4 Global business overview 5Local business overview 6

Key figures – Business by turnover 6Spotlight: Vaccines 7Tackling antimicrobial resistance 8

Community investment 11Gender diversity 11

Closing the gap in digital tech 11Spotlight: PULSE Assignments 12

New industry business model 14#1’s on Fortune’s ‘Change the World’ company list 14GSK tops Access to Medicines list 14Investing in students 14

Bring science to the classroom 14National Youth Science Forum 14Industry Based Learning 14Graduates 14

Our global goals 16Boronia’s environmental sustainability 16

World-class medicine manufacturing in Victoria 17Our response to the Zika virus outbreak 18

Contents Inside this report

Our approach

Health for all

Our people

Our behaviour

Our planet

A new phase of growth and development Global business overview

Local business overviewKey figures - Business by turnoverSpotlight: ViiV Healthcare

45

667

Humanitarian emergency response Diseases of the developing world Affordability in low and middle-income countries Clinical studies

Community investmentListening to employeesGender diversityInvesting in students

9999

10

121213

88

88

11111112

Changing our business modelEnsuring ethical interactions

Spotlight: Partnerships and collaborations

1415 16

Our approachOur global goalsDeforestation

Carbon trust Spotlight: Investment in Boronia

171718

1819

Award for Research ExcellenceIndigenous healthPatient advocacy groups Medicines registered and reimbursedSpotlight: Milestone – fighting malaria

Fundraising and partnership – Save the ChildrenVolunteeringSpotlight: Staff profile

Contents Inside this report

Our approach

Health for all

Our people

Our behaviour

Our planet

A new phase of growth and development Global business overview

Local business overviewKey figures - Business by turnoverSpotlight: ViiV Healthcare

45

667

Humanitarian emergency response Diseases of the developing world Affordability in low and middle-income countries Clinical studies

Community investmentListening to employeesGender diversityInvesting in students

9999

10

121213

88

88

11111112

Changing our business modelEnsuring ethical interactions

Spotlight: Partnerships and collaborations

1415 16

Our approachOur global goalsDeforestation

Carbon trust Spotlight: Investment in Boronia

171718

1819

Award for Research ExcellenceIndigenous healthPatient advocacy groups Medicines registered and reimbursedSpotlight: Milestone – fighting malaria

Fundraising and partnership – Save the ChildrenVolunteeringSpotlight: Staff profile

Contents Inside this report

Our approach

Health for all

Our people

Our behaviour

Our planet

A new phase of growth and development Global business overview

Local business overviewKey figures - Business by turnoverSpotlight: ViiV Healthcare

45

667

Humanitarian emergency response Diseases of the developing world Affordability in low and middle-income countries Clinical studies

Community investmentListening to employeesGender diversityInvesting in students

9999

10

121213

88

88

11111112

Changing our business modelEnsuring ethical interactions

Spotlight: Partnerships and collaborations

1415 16

Our approachOur global goalsDeforestation

Carbon trust Spotlight: Investment in Boronia

171718

1819

Award for Research ExcellenceIndigenous healthPatient advocacy groups Medicines registered and reimbursedSpotlight: Milestone – fighting malaria

Fundraising and partnership – Save the ChildrenVolunteeringSpotlight: Staff profile

Contents Inside this report

Our approach

Health for all

Our people

Our behaviour

Our planet

A new phase of growth and development Global business overview

Local business overviewKey figures - Business by turnoverSpotlight: ViiV Healthcare

45

667

Humanitarian emergency response Diseases of the developing world Affordability in low and middle-income countries Clinical studies

Community investmentListening to employeesGender diversityInvesting in students

9999

10

121213

88

88

11111112

Changing our business modelEnsuring ethical interactions

Spotlight: Partnerships and collaborations

1415 16

Our approachOur global goalsDeforestation

Carbon trust Spotlight: Investment in Boronia

171718

1819

Award for Research ExcellenceIndigenous healthPatient advocacy groups Medicines registered and reimbursedSpotlight: Milestone – fighting malaria

Fundraising and partnership – Save the ChildrenVolunteeringSpotlight: Staff profile

Contents Inside this report

Our approach

Health for all

Our people

Our behaviour

Our planet

A new phase of growth and development Global business overview

Local business overviewKey figures - Business by turnoverSpotlight: ViiV Healthcare

45

667

Humanitarian emergency response Diseases of the developing world Affordability in low and middle-income countries Clinical studies

Community investmentListening to employeesGender diversityInvesting in students

9999

10

121213

88

88

11111112

Changing our business modelEnsuring ethical interactions

Spotlight: Partnerships and collaborations

1415 16

Our approachOur global goalsDeforestation

Carbon trust Spotlight: Investment in Boronia

171718

1819

Award for Research ExcellenceIndigenous healthPatient advocacy groups Medicines registered and reimbursedSpotlight: Milestone – fighting malaria

Fundraising and partnership – Save the ChildrenVolunteeringSpotlight: Staff profile

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Our approach Transforming our business

In 2016 we have transformed our businessmodel, not just delivering on our commitmentto increase transparency and introduce a newmodel for medical education, but evolving andmodernising the way we work as a whole, toadd more value and continue to build trust.

We want our customers to be able to makemore informed choices about how they managetheir health. As such, we’ve made more of ourresearch data available through open sourceprograms and increased the internal data weshare with healthcare professionals. Not onlydoes this

Building on our 2015 move to no longerincentivise sales representatives for prescriptionmedicines based on individual sales targets,we have now become the first company to enddirect payments to healthcare professionals forspeaking about its prescription medicines andvaccines.

We believe these changes go a long waytowards bringing greater clarity and confidencethat our patients’ interests always come firstwhenever we talk to doctors, nurses or otherprescribers.

Our Vaccines Business carried a strongperformance throughout the year and weproudly remained the largest supplier to theAustralian Government’s National ImmunisationProgram.

Our new respiratory assets continued to growwhich helped bolster our leadership in thearea of respiratory medicines and we remaincommitted to tackling the areas of highest unmetneed in respiratory diseases.

GSK Consumer Healthcare Australia becamethe prime distributor for the combined GSK-Novartis consumer healthcare portfolio in Australia, following the completion of theNovartis Consumer Health Australasia Pty Ltdtransaction and the effective transfer of themarket authorisations. We saw a sustainedrise in self-care in Australia, fuelled in partby an ageing population, greater access tohealth information and an increased interestin preventative health. With our expertisein respiratory and as a leader in both painmanagement and specialist oral health - throughhousehold brands such as Panadol, Voltarenand Sensodyne - we are well-placed to supportconsumers looking to manage their healthproactively.

Exports from our Boronia manufacturing facilitycontinue to represent a significant proportionof our Australian revenue and we are keento ensure the continuous improvement of

our manufacturing operations to maintain anefficient, cost competitive and sustainablesupply network.

Stability and quality tests conducted thisyear have continued progress on our 2015investment in a new pilot vaccine facility atBoronia, using blow-fill-seal technology.In November, we announced our decision toclose our Consumer Healthcare manufacturingsite in Ermington, Australia in Sydney’s northwest.

The decision follows a review, whichhighlighted that the significant ongoinginvestment required in the site would makeit uncompetitive to keep manufacturing inSydney in the future. Production at our Sydneymanufacturing site will gradually be transferredto a combination of other GSK manufacturingsites in our network and third-party contractmanufacturers over the next four years. Wewant to express a heartfelt thank you to allof our employees who have played a part incontributing to the near 60-year legacy of our Global Manufacturing and Supply (GMS) in Sydney.

ViiV Healthcare Australia (VHCA) continued itsstrong growth from 2015, reporting a 35 percent increase in its sales revenue. 2016 saw VHCA persist in its pursuit of treatment innovation and improvements to better the health and well-being of people living with HIV.Moving forward VHCA remains dedicated toworking with all stakeholders to achieve theambitious goals of the National HIV Strategy andreduce the impact of the virus in the community.

In 2016 we were privileged to not only growour existing major partnerships with Save theChildren and Monash University, but to fosternew relationships with partners that alignnot only with our goals but also, and mostimportantly, with our values.

Our people continue to be our greatest assetand our commitment to investing in anddeveloping our employees is stronger than ever.This year we have continued to build digitalcapability across the entire organisation. Wehave accelerated our digital transformationjourney through collaboration with retail anddigital partners to roll out global best practices and world leading local initiatives.

Through internal employee programs likePULSE, opportunities with our externalpartners and structured on-the-job learningand development, we want our people to feelempowered to make decisions and be confidentthat their hard work and innovative thinking istruly recognised and valued across the business.

Anne BelcherGeneral Manager GSK Pharmaceutical Australia

Elizabeth ReynoldsGeneral ManagerGSK Consumer Healthcare ANZ

4 Responsible Business Highlights Report 2016 | GSK Australia

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Responsible Business Highlights Report 2015 | GSK Australia and New Zealand5

GSK is a science-led global healthcare company that researches and develops innovative Pharmaceuticals, Vaccines and Consumer Healthcare products. In 2015, these businesses generated a turnover of £23.9 billion globally.

Our global strategy is focused on key strategic priorities which aim to increase growth, reduce risk and improve our long-term financial performance. These

priorities are:

• Grow a diversified global business;

• Deliver more products of value;

• Simplify the operating model; and

• Be a responsible business.

We have a significant global presence with more than 100,000 employees in more than 150 markets, including a network

of 72 manufacturing sites in 34 countries.

We demonstrate strong R&D innovation and have profiled around 40 new potential medicines and vaccines in 2015. Of these, we believe 80 per cent are potentially first-in-class.

We partner with over 1,500 other companies and academic organisations around the world, which enables us to increase our

understanding of new areas of science and to share the risk of development.

Each year we continue to uphold responsible business operations which are central to how we deliver success. Our work is underpinned by our values of patient and customer focus, integrity, respect for people and transparency.

Pharmaceuticals Research and Development (R&D)

Vaccines Consumer Healthcare

£14.2bn £3.7bn £6.0bn £3.1bn

60% 15% 25%2015 turnover 2015 turnover 2015 turnover 2015 turnover

of Group turnover of Group turnover of Group turnover

Our Pharmaceuticals business develops and makes medicines to treat a broad range of acute and chronic diseases. We have leading global positions in respiratory disease and HIV with a portfolio of innovative and established medicines.

Our Vaccines business is one of the largest in the world, developing, producing and distributing over 1.9 million vaccines every day. We have a broad portfolio of 39 paediatric, adolescent, adult and travel vaccines.

Our Consumer Healthcare business develops and markets products in wellness, oral health, nutrition and skin health. We have a portfolio of some of the world’s most trusted and bestselling brands which include Sensodyne, Voltaren, Horlicks and Panadol.

Research and development underpins all of our business with research focused in six core therapy areas: vaccines, respiratory diseases, rare diseases, immuno-inflammation, HIV/infectious diseases and oncology.

Global business overview

Our approach Health for all Our people Our planetOur behaviour

5 Responsible Business Highlights Report 2016 | GSK Australia

Global business overview

GSK is a science-led global healthcare company that researches and develops innovative Pharmaceuticals, Vaccines and Consumer Healthcare products. In 2016, these businesses generated a turnover of £27.9 billion globally.

Looking forward, our strategies globally focus on increasing growth while also reducing our risks and improving our long-term performance. These key strategic priorities are:

• Grow a balanced business and product portfolio centred on our three global businesses;

• Deliver more products of value to offer improved treatments for patients, consumers and healthcare providers;

• Simplify the way we operate to reduce complexity and increase efficiency;

• Be a responsible business.

Operating in over 150 markets with almost 100,000 employees and a network of manufacturing and office sites in 75 countries around the world, we have a significant global presence.

Our dedication and determination to improve the health of people around the world is demonstrated through our focus in six core areas. By working in collaboration with over 1,500 partners, including academic institutions, biotechs, public-private

partnerships and other pharmaceutical companies, we are able to increase our understanding of new areas of science and further progress research and development.

Our values of patient and customer focus, integrity, respect for people and transparency remain integral aspects of our work, and allow us to uphold responsible business practices while delivering success.

Responsible Business Highlights Report 2015 | GSK Australia and New Zealand5

GSK is a science-led global healthcare company that researches and develops innovative Pharmaceuticals, Vaccines and Consumer Healthcare products. In 2015, these businesses generated a turnover of £23.9 billion globally.

Our global strategy is focused on key strategic priorities which aim to increase growth, reduce risk and improve our long-term financial performance. These

priorities are:

• Grow a diversified global business;

• Deliver more products of value;

• Simplify the operating model; and

• Be a responsible business.

We have a significant global presence with more than 100,000 employees in more than 150 markets, including a network

of 72 manufacturing sites in 34 countries.

We demonstrate strong R&D innovation and have profiled around 40 new potential medicines and vaccines in 2015. Of these, we believe 80 per cent are potentially first-in-class.

We partner with over 1,500 other companies and academic organisations around the world, which enables us to increase our

understanding of new areas of science and to share the risk of development.

Each year we continue to uphold responsible business operations which are central to how we deliver success. Our work is underpinned by our values of patient and customer focus, integrity, respect for people and transparency.

Pharmaceuticals Research and Development (R&D)

Vaccines Consumer Healthcare

£14.2bn £3.7bn £6.0bn £3.1bn

60% 15% 25%2015 turnover 2015 turnover 2015 turnover 2015 turnover

of Group turnover of Group turnover of Group turnover

Our Pharmaceuticals business develops and makes medicines to treat a broad range of acute and chronic diseases. We have leading global positions in respiratory disease and HIV with a portfolio of innovative and established medicines.

Our Vaccines business is one of the largest in the world, developing, producing and distributing over 1.9 million vaccines every day. We have a broad portfolio of 39 paediatric, adolescent, adult and travel vaccines.

Our Consumer Healthcare business develops and markets products in wellness, oral health, nutrition and skin health. We have a portfolio of some of the world’s most trusted and bestselling brands which include Sensodyne, Voltaren, Horlicks and Panadol.

Research and development underpins all of our business with research focused in six core therapy areas: vaccines, respiratory diseases, rare diseases, immuno-inflammation, HIV/infectious diseases and oncology.

Global business overview

Our approach Health for all Our people Our planetOur behaviour

£16.1bn2016 turnover

£4.6bn2016 turnover

£7.2bn2016 turnover

Invested £3.6bnAcross the three businesses in 2016.

58%of Group turnover

16%of Group turnover

26%of Group turnover

Our Pharmaceuticals business discovers and develops medicines to treat a range of acute and chronic diseases. Our research is focussed across respiratory and HIV – where we are global leaders – as well as infectious diseases, immuno-inflammation, oncology and rare diseases.

Our Vaccines business has the broadest portfolio of any company, with vaccines for people of all ages. We deliver over two million vaccine doses per day to people living in over 160 countries.

Our Consumer Healthcare business develops and markets products in Wellness, Oral health, Nutrition and Skin health. Our global power brands, which include Otrivin, Panadol, Sensodyne and Voltaren, are some of the most trusted and best-selling brands in the world.

In 2016, we invested £3.6 billion in R&D expenditure across our three businesses. External partnerships and collaborations enable us to develop and access knowledge, and increase our understanding in new areas of science.

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Responsible Business Highlights Report 2015 | GSK Australia and New Zealand5

GSK is a science-led global healthcare company that researches and develops innovative Pharmaceuticals, Vaccines and Consumer Healthcare products. In 2015, these businesses generated a turnover of £23.9 billion globally.

Our global strategy is focused on key strategic priorities which aim to increase growth, reduce risk and improve our long-term financial performance. These

priorities are:

• Grow a diversified global business;

• Deliver more products of value;

• Simplify the operating model; and

• Be a responsible business.

We have a significant global presence with more than 100,000 employees in more than 150 markets, including a network

of 72 manufacturing sites in 34 countries.

We demonstrate strong R&D innovation and have profiled around 40 new potential medicines and vaccines in 2015. Of these, we believe 80 per cent are potentially first-in-class.

We partner with over 1,500 other companies and academic organisations around the world, which enables us to increase our

understanding of new areas of science and to share the risk of development.

Each year we continue to uphold responsible business operations which are central to how we deliver success. Our work is underpinned by our values of patient and customer focus, integrity, respect for people and transparency.

Pharmaceuticals Research and Development (R&D)

Vaccines Consumer Healthcare

£14.2bn £3.7bn £6.0bn £3.1bn

60% 15% 25%2015 turnover 2015 turnover 2015 turnover 2015 turnover

of Group turnover of Group turnover of Group turnover

Our Pharmaceuticals business develops and makes medicines to treat a broad range of acute and chronic diseases. We have leading global positions in respiratory disease and HIV with a portfolio of innovative and established medicines.

Our Vaccines business is one of the largest in the world, developing, producing and distributing over 1.9 million vaccines every day. We have a broad portfolio of 39 paediatric, adolescent, adult and travel vaccines.

Our Consumer Healthcare business develops and markets products in wellness, oral health, nutrition and skin health. We have a portfolio of some of the world’s most trusted and bestselling brands which include Sensodyne, Voltaren, Horlicks and Panadol.

Research and development underpins all of our business with research focused in six core therapy areas: vaccines, respiratory diseases, rare diseases, immuno-inflammation, HIV/infectious diseases and oncology.

Global business overview

Our approach Health for all Our people Our planetOur behaviour

6 Responsible Business Highlights Report 2016 | GSK Australia

Local business overview

Key figures - business by turnover

Australia

New Zealand

Pharmaceuticals includingmanufacturing

$943million

Pharmaceutical andmedicinal exports

$457million

Consumer Healthcare including manufacturing

$411 million

ViiV Healthcare Australia Pty Ltd

$78 million

Research and development

$39million

1,267

Pharmaceuticals

$65 million

Consumer Healthcare

$26 millionResearch and Development

$2.18 million

* The Consumer Healthcare business was established in Sep 2016 once medicine licences were transferred to the new entity.** Transferred to Sun Pharmaceuticals in August, 2016

Employee numbers in Australia

74Employee numbers in New Zealand

Key figures - business by turnover

Australia

New Zealand

Pharmaceuticals includingmanufacturing

$943million

Pharmaceutical andmedicinal exports

$457million

Consumer Healthcare including manufacturing

$411 million

ViiV Healthcare Australia Pty Ltd

$78 million

Research and development

$39million

1,267

Pharmaceuticals

$65 million

Consumer Healthcare

$26 millionResearch and Development

$2.18 million

* The Consumer Healthcare business was established in Sep 2016 once medicine licences were transferred to the new entity.** Transferred to Sun Pharmaceuticals in August, 2016

Employee numbers in Australia

74Employee numbers in New Zealand

The GSK footprint in Australia encompasses over 1200 staff members who work together to help people do more, feel better and live longer.

Of our three Australian sites, two - Abbotsford and Boronia in Victoria - focus on our Pharmaceuticals business, while our Consumer Healthcare business is located in Ermington, New South Wales.

In 2016, we completed our acquisition of the Australian Consumer Healthcare activities of Novartis Consumer Health Australasia Pty Ltd in continuation with the global three-part transaction, allowing GSK to be the prime

distributer for the combined GSK-Novartis consumer healthcare portfolio in Australia.

Closure of Ermington manufacturing facility In November the closure of our GMS Sydney Consumer Healthcare manufacturing facility in Ermington was announced, with the site scheduled to cease operations in 2020.

The closure – which will ensure we are continuously improving our manufacturing operations, in order to maintain an efficient, cost competitive and sustainable supply

network - is being phased over the next four years, as production is gradually transferred to a combination of other GSK sites in our network and third-party contract manufacturers.

For almost 60 years, GMS Sydney has been making and supplying Panadol products to the millions of consumers who rely on us. We are all very proud of this legacy, which our team in Ermington has worked very hard to achieve.

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Responsible Business Highlights Report 2015 | GSK Australia and New Zealand5

GSK is a science-led global healthcare company that researches and develops innovative Pharmaceuticals, Vaccines and Consumer Healthcare products. In 2015, these businesses generated a turnover of £23.9 billion globally.

Our global strategy is focused on key strategic priorities which aim to increase growth, reduce risk and improve our long-term financial performance. These

priorities are:

• Grow a diversified global business;

• Deliver more products of value;

• Simplify the operating model; and

• Be a responsible business.

We have a significant global presence with more than 100,000 employees in more than 150 markets, including a network

of 72 manufacturing sites in 34 countries.

We demonstrate strong R&D innovation and have profiled around 40 new potential medicines and vaccines in 2015. Of these, we believe 80 per cent are potentially first-in-class.

We partner with over 1,500 other companies and academic organisations around the world, which enables us to increase our

understanding of new areas of science and to share the risk of development.

Each year we continue to uphold responsible business operations which are central to how we deliver success. Our work is underpinned by our values of patient and customer focus, integrity, respect for people and transparency.

Pharmaceuticals Research and Development (R&D)

Vaccines Consumer Healthcare

£14.2bn £3.7bn £6.0bn £3.1bn

60% 15% 25%2015 turnover 2015 turnover 2015 turnover 2015 turnover

of Group turnover of Group turnover of Group turnover

Our Pharmaceuticals business develops and makes medicines to treat a broad range of acute and chronic diseases. We have leading global positions in respiratory disease and HIV with a portfolio of innovative and established medicines.

Our Vaccines business is one of the largest in the world, developing, producing and distributing over 1.9 million vaccines every day. We have a broad portfolio of 39 paediatric, adolescent, adult and travel vaccines.

Our Consumer Healthcare business develops and markets products in wellness, oral health, nutrition and skin health. We have a portfolio of some of the world’s most trusted and bestselling brands which include Sensodyne, Voltaren, Horlicks and Panadol.

Research and development underpins all of our business with research focused in six core therapy areas: vaccines, respiratory diseases, rare diseases, immuno-inflammation, HIV/infectious diseases and oncology.

Global business overview

Our approach Health for all Our people Our planetOur behaviour

7 Responsible Business Highlights Report 2016 | GSK Australia

Spotlight: Vaccines

Produceantigens

Pre-clinicaltesting

Phase I Phase II Proof of concept

Phase III File Registration/post marketingsurveillance

Indentifyantigens

Vaccines research development cycle (industry average)

Research

Pre-clinical development

(including immunology)

1-10 years 2-3 years 2-4 years >1 year

Transfer process to manufacturing

Clinical development(including post-marketing surveillance)

Did you know every year

2-3 milliondeaths are prevented as a result of vaccination? That’s greater than the populations of Canberra, Darwin, Hobart and Perth combined.

Did you know around

40% of the world’schildren are immunised against at least one serious disease with a GSK vaccine?

Although every disease, infectious or not will have its own challenges, our work to develop and introduce a new vaccine typically goes through seven stages.

Vaccination is recognised worldwide as one of the best investments that any government or healthcare organisation can make. We are proud to be the largest supplier of vaccines to the Australian National Immunisation Program, helping to protect Australians against 14 different diseases through the provision of nine vaccines. Our vaccines have been helping to protect people from serious disease for well over 100 years. Today, our vaccines continue to tackle some of the world’s most devastating diseases, including pneumococcal disease, meningitis, hepatitis, rotavirus, whooping cough and influenza.

“ Only clean drinking water rivals vaccination in its ability to save lives.”

World Health Organisation

Globally we deliver over two million vaccine doses per day to people across over 160 countries and in 2016, the business contributed £4.6 billion (16%) to the overall turnover of the Group.While Australia has a comprehensive childhood immunisation program and targeted adult schemes, there are still people needing assistance.

For over a decade, GSK Australia has supported Australian Immunisation providers through the GSK Immunisation Grants (previously GSK Immunisation Awards). These grants provide financial assistance for innovative projects that aim to increase awareness or uptake of vaccination.

The GSK Immunisation Grants are one of Australia’s longest standing programs designed to encourage innovation and the sharing of best practice for immunisation providers.

We also remain committed to widening access to immunisation globally. For the least developed countries, we work closely with organisations such as Gavi, the Vaccine Alliance and UNICEF. These organisations are able to purchase large volumes of vaccines for the world’s poorest children at our lowest prices.

In 2012, the WHO and its 194 member’s states published an action plan on vaccination to extend access to immunisation to everyone in the world, promote innovation in the vaccines industry and prevent millions of deaths.

Over a third of our vaccines currently in development aim to protect against diseases for which there are no vaccines currently available. The other two thirds aim to improve our existing vaccines.

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Responsible Business Highlights Report 2015 | GSK Australia and New Zealand5

GSK is a science-led global healthcare company that researches and develops innovative Pharmaceuticals, Vaccines and Consumer Healthcare products. In 2015, these businesses generated a turnover of £23.9 billion globally.

Our global strategy is focused on key strategic priorities which aim to increase growth, reduce risk and improve our long-term financial performance. These

priorities are:

• Grow a diversified global business;

• Deliver more products of value;

• Simplify the operating model; and

• Be a responsible business.

We have a significant global presence with more than 100,000 employees in more than 150 markets, including a network

of 72 manufacturing sites in 34 countries.

We demonstrate strong R&D innovation and have profiled around 40 new potential medicines and vaccines in 2015. Of these, we believe 80 per cent are potentially first-in-class.

We partner with over 1,500 other companies and academic organisations around the world, which enables us to increase our

understanding of new areas of science and to share the risk of development.

Each year we continue to uphold responsible business operations which are central to how we deliver success. Our work is underpinned by our values of patient and customer focus, integrity, respect for people and transparency.

Pharmaceuticals Research and Development (R&D)

Vaccines Consumer Healthcare

£14.2bn £3.7bn £6.0bn £3.1bn

60% 15% 25%2015 turnover 2015 turnover 2015 turnover 2015 turnover

of Group turnover of Group turnover of Group turnover

Our Pharmaceuticals business develops and makes medicines to treat a broad range of acute and chronic diseases. We have leading global positions in respiratory disease and HIV with a portfolio of innovative and established medicines.

Our Vaccines business is one of the largest in the world, developing, producing and distributing over 1.9 million vaccines every day. We have a broad portfolio of 39 paediatric, adolescent, adult and travel vaccines.

Our Consumer Healthcare business develops and markets products in wellness, oral health, nutrition and skin health. We have a portfolio of some of the world’s most trusted and bestselling brands which include Sensodyne, Voltaren, Horlicks and Panadol.

Research and development underpins all of our business with research focused in six core therapy areas: vaccines, respiratory diseases, rare diseases, immuno-inflammation, HIV/infectious diseases and oncology.

Global business overview

Our approach Health for all Our people Our planetOur behaviour

8 Responsible Business Highlights Report 2016 | GSK Australia

Tackling antimicrobial resistance

Antimicrobials, and specifically antibiotics, play a crucial role in modern medicine. As such, the steady increase in antibiotic-resistant bacteria has become a serious threat to global public health.

Tackling antibiotic resistance is a challenge we want to be part of solving, but one company cannot do it alone.

In January, GSK signed up to a ground-breaking declaration of more than 80 pharmaceutical and diagnostics companies,

committing to work with governments and in parallel to address the issue of antimicrobial resistance.

Building on the Declaration, which sets out commitments across three broad areas: reducing the development of antimicrobial resistance, increasing investment in R&D and improving access to antibiotics for all, in September, we also added our signature to an industry “Roadmap”, which lays out a series of specific actions for fulfilling the commitments of the Declaration.

In 2016 we also made a commitment to helping China tackle the health threats posed by antibiotic resistance and infectious diseases, through the formation of the Institute for Infectious Diseases and Public Health - a new public health institute in Beijing.

We have a long heritage and expertise in antibiotics going back 40 years, and we’re committed to continuing our research in this area.

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Responsible Business Highlights Report 2015 | GSK Australia and New Zealand8

Health for all

Pam appeal to ensure children and families received support in the aftermath of this devastating event. We also provided seed funding to help Save the Children Australia establish an Emergency Health Unit in the Pacific – a team of specialist health workers who deliver basic healthcare within 72 hours after disaster strikes (such as cyclones or earthquakes), as well as essential healthcare during a slow acting disaster such as malnutrition caused by drought.

Diseases of the developing world Our open innovation model continues to advance research in diseases of the developing world (DDWs) such as malaria, tuberculosis (TB) and neglected tropical diseases (NTDs). At our dedicated research centre in Tres Cantos, Spain, we work exclusively on developing new and innovative medicines for diseases of the developing world, supported by and collaborating with other organisations including the Wellcome Trust and the Bill and Melinda Gates Foundation.

In 2015, our Tres Cantos researchers screened our library of over two million compounds for signs of activity against kinetoplastids – a group of parasitic diseases estimated to infect approximately 20 million people in the developing world – and have shared the 600 ‘hits’ identified with researchers, to encourage further research in this field both within and outside GSK.

Affordability in low and middle-income countries Six billion people live in emerging markets and 300 million of them will begin using healthcare for the first time in the next five years. Our flexible pricing strategy seeks to meet their healthcare needs by providing more products at lower prices.

GSK pioneered the tiered pricing model to improve access to our vaccines and enable low-income countries to roll out national immunisation programmes. We offer our lowest prices on vaccines for organisations such as Gavi and the Vaccine Alliance, which supports countries with a Gross National Income (GNI) per head of less than $1,570.

In 2015, we committed to freezing our prices for developing countries that graduate from organisations such as Gavi so they can continue to purchase our vaccines at significantly discounted prices for a decade after graduation. We also supplied 62 million low-cost doses of the vaccination Synflorix to Gavi and over 100,000 doses to Médecins sans Frontières to immunise children caught up in crises.

Clinical studiesOur clinical research team worked on 52 clinical studies during 2015.

These studies are an essential part of our efforts to develop new medicines and vaccines and improve our understanding of both patient need as well as the benefits and risks of our products.

The number of clinical studies coordinated by our local team has reduced over the years due to changes in the global R&D landscape, however studies remain an integral part of our local operations and an essential part of how we will continue to develop medicines in the future.

Our medicines, vaccines and consumer health products are improving quality of life for patients and consumers around the world, however many people are still not getting the treatments they need. Challenges include affordability, the fact that there are still many diseases without treatments, and under-resourced health systems.

In the United Nations’ new Global Goals for Sustainable Development (SDGs), health is explicitly included in goal number three, “ensure healthy lives and promote well being for all ages.” We will support this by tackling some of the key local and global health challenges, extending the benefits of our products to more people regardless of where they live or their ability to pay.

Humanitarian emergency response GSK works with partners and humanitarian organisations around the globe to prepare for and respond to emergency situations. In some instances, we fast-track the development of life-saving vaccines and in others, we contribute by donating cash, products and our employees’ time. We also invest in long-term rebuilding and reconstruction in the aftermath of a disaster.

In 2015, GSK continued to work with Save the Children globally and locally. This included providing funding to the Cyclone

Our approach Health for all Our behaviourOur people Our planet

9 Responsible Business Highlights Report 2016 | GSK Australia

Health for all

Award for Research ExcellenceSince its introduction in 1980, the GSK Award for Research Excellence (ARE) has been awarded 35 times and is now considered one of the most prestigious awards available to the Australian medical research community.

The award’s alumni includes some of Australia’s most noted scientific researchers such as, Professor Tony Basten, Professor Nicos Nicola and Professor Peter Koopman.

In 2016, Professors Arthur Christopoulos and Patrick Sexton from Monash University added their names to the list.

The professors won the ARE in recognition of their ground-breaking research which explored “dimmer switch” medicines with the potential to help patients with obesity, diabetes and schizophrenia.

Their research into G protein-coupled receptors (GPCRs) has begun unravelling the complexities of drug action that could lead to more targeted medicines.

According to Christopoulos and Sexton, medicines that can be “turned up” or “turned down” rather than “on and off” will give doctors more variability to tailor treatment to a patient’s medical needs.

Medicines based on this principle will allow patients to lead a more normal life without the side effects associated with existing drugs.

As an innovation-focussed company, GSK places high value on medical research. In recent years the work of Professors Arthur Christopoulos and Patrick Sexton has challenged traditional views of how medicines were thought to work. It is our great pleasure to be able to continue to recognise some of Australia’s most important leaders and innovators in the medical research sphere with the GSK ARE.

Humanitarian emergency responseHumanitarian crises are becoming more frequent, more widespread and more complex with Asia-Pacific being the world’s most disaster-prone region. It’s clear that a new approach is needed to help tackle the challenges facing our increasingly inter-connected and global community.

In partnership with Save the Children and Deakin University we are supporting the development of a Graduate Certificate in Humanitarian Health and research into humanitarian health to educate and up-skill health professionals to prepare them for deployment in the most crisis-prone countries, enabling more effective humanitarian action in the event of a disaster.

It’s a new approach that presents a truly global partnership between private sector corporations, philanthropists, NGOs, governments and academia.

Read more at: au.gsk.com/savethechildren

We are committed to developing innovative products and extending access to healthcare to more people, no matter where they live or their ability to pay.

We are tackling some of the greatest global health challenges by innovating to meet unmet needs, making our medicines and vaccines more accessible, and strengthening healthcare systems.

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Responsible Business Highlights Report 2015 | GSK Australia and New Zealand8

Health for all

Pam appeal to ensure children and families received support in the aftermath of this devastating event. We also provided seed funding to help Save the Children Australia establish an Emergency Health Unit in the Pacific – a team of specialist health workers who deliver basic healthcare within 72 hours after disaster strikes (such as cyclones or earthquakes), as well as essential healthcare during a slow acting disaster such as malnutrition caused by drought.

Diseases of the developing world Our open innovation model continues to advance research in diseases of the developing world (DDWs) such as malaria, tuberculosis (TB) and neglected tropical diseases (NTDs). At our dedicated research centre in Tres Cantos, Spain, we work exclusively on developing new and innovative medicines for diseases of the developing world, supported by and collaborating with other organisations including the Wellcome Trust and the Bill and Melinda Gates Foundation.

In 2015, our Tres Cantos researchers screened our library of over two million compounds for signs of activity against kinetoplastids – a group of parasitic diseases estimated to infect approximately 20 million people in the developing world – and have shared the 600 ‘hits’ identified with researchers, to encourage further research in this field both within and outside GSK.

Affordability in low and middle-income countries Six billion people live in emerging markets and 300 million of them will begin using healthcare for the first time in the next five years. Our flexible pricing strategy seeks to meet their healthcare needs by providing more products at lower prices.

GSK pioneered the tiered pricing model to improve access to our vaccines and enable low-income countries to roll out national immunisation programmes. We offer our lowest prices on vaccines for organisations such as Gavi and the Vaccine Alliance, which supports countries with a Gross National Income (GNI) per head of less than $1,570.

In 2015, we committed to freezing our prices for developing countries that graduate from organisations such as Gavi so they can continue to purchase our vaccines at significantly discounted prices for a decade after graduation. We also supplied 62 million low-cost doses of the vaccination Synflorix to Gavi and over 100,000 doses to Médecins sans Frontières to immunise children caught up in crises.

Clinical studiesOur clinical research team worked on 52 clinical studies during 2015.

These studies are an essential part of our efforts to develop new medicines and vaccines and improve our understanding of both patient need as well as the benefits and risks of our products.

The number of clinical studies coordinated by our local team has reduced over the years due to changes in the global R&D landscape, however studies remain an integral part of our local operations and an essential part of how we will continue to develop medicines in the future.

Our medicines, vaccines and consumer health products are improving quality of life for patients and consumers around the world, however many people are still not getting the treatments they need. Challenges include affordability, the fact that there are still many diseases without treatments, and under-resourced health systems.

In the United Nations’ new Global Goals for Sustainable Development (SDGs), health is explicitly included in goal number three, “ensure healthy lives and promote well being for all ages.” We will support this by tackling some of the key local and global health challenges, extending the benefits of our products to more people regardless of where they live or their ability to pay.

Humanitarian emergency response GSK works with partners and humanitarian organisations around the globe to prepare for and respond to emergency situations. In some instances, we fast-track the development of life-saving vaccines and in others, we contribute by donating cash, products and our employees’ time. We also invest in long-term rebuilding and reconstruction in the aftermath of a disaster.

In 2015, GSK continued to work with Save the Children globally and locally. This included providing funding to the Cyclone

Our approach Health for all Our behaviourOur people Our planet

10 Responsible Business Highlights Report 2016 | GSK Australia

Patient Advocacy GroupsWe continue to work closely with various patient organisations operating in a wide range of disease areas throughout the country.

In recognition of the importance of patient groups remaining independent we limit the financial support we provide to no more than 25 per cent of the total annual revenue or any group and publicly disclose who we support each year.

In 2016 we provided $AUD 340,158.00 in financial support or donations to patient groups across Australia.

Groups who received independent grants this year include Allergy and Anaphylaxis Australia, Asthma Australia, Foundation 49: Men’s Health, Lung Foundation Australia, Meningitis Centre Australia, Meningococcal Australia, Polio Australia, Pulmonary Hypertension Association of Australia, Rare Cancers Australia and Rare Voices Australia.

Clinical studiesOur ability to bring clinical trials to Australia remains a key priority. In 2016, 52 clinical trials were conducted directly by our GSK clinical research teams or in partnership with our global Clinical Research Organisation partners.

These studies are important in developing new medicines and vaccines, and provide insights into patient needs and improved treatment options. They also allow patients the opportunity to be involved with innovative new drug development from which they may receive early benefit prior to product launch.

Australia remains a strong contributor to the global R&D organisation and is considered a reliable and expert partner in the delivery of global clinical trials.

ViiV Healthcare Australia launches world’s first HIV health and wellbeing appViiV Healthcare Australia (VHCA) proudly launched MyLife+, a first-of-its-kind, health and wellbeing app to help people navigate the HIV journey.

Developed in collaboration with people living with HIV (PLHIV) and in partnership with the National Association of People with HIV Australia (NAPWHA), MyLife+ was designed to empower PLHIV to take control and self-manage, build health literacy through educational content and enable PLHIV to have better planned conversations with healthcare professionals.

Through the app VHCA want to help address the stigma of HIV and show the wider Australian public that HIV is a condition impacting real people, across every walk of life – with unique and evolving needs for support.

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Responsible Business Highlights Report 2015 | GSK Australia and New Zealand11

Our peopleWe invest in our people to ensure the long-term sustainability of our business. In order to help us tackle the biggest global health challenges, we need a talented, motivated and resilient workforce.

Our aim is to create a working environment where employees feel valued, respected, empowered and inspired. Listening to and supporting our employees has been particularly important during a year of significant change in the business.

We take a progressive approach to developing leaders, and help our employees learn new skills and gain new experiences to support their personal ambitions and drive the business forward.

Combining development opportunities with volunteering, for example through our PULSE programme, benefits our people, our business and our non-profit partners.

Community investmentWe continue to make donations to local charities in recognition of the communities in which we operate.

In 2015 our global community investment totalled £208.3 million, an increase from £201.5 million the previous year. These global contributions comprised £56.6 million cash, £136.9 million of product and in kind donations to support humanitarian aid and £3.7 million in volunteering time and expertise. Management of these global contributions accounted for the remaining £11.1 million.

In Australia, we provided more than $625,000 in donations to organisations including the National Youth Science Forum, Foodbank and Save the Children Australia. $150,000 of this came from our Opiates business who generously donated to community charities in regional Victoria and Tasmania following the transfer of GSK’s Opiates business to Sun Pharmaceuticals.

In New Zealand, we provided more than $NZD65,000 to local community organisations including KidsCan New Zealand, YouthLine and Body Positive New Zealand.

Listening to employeesIn 2015 more employees than ever before shared their views in our global employee survey with a 78 per cent response rate, up from 72 per cent in 2012, providing the company with valuable feedback.

Results from the survey told us that our employees are clear on their accountabilities and feel empowered to perform their roles in the right way.

The research also showed that GSK ranks higher than the external benchmark in two important areas: managers’ support of work/life balance within their teams and in communication.

Whilst engagement levels have fallen, which was expected given the amount of significant change at GSK in the last 12 months, they continue to remain positive.

Gender diversityWe aim to improve the gender balance by encouraging more women to join our business and develop as leaders.

Through our global Accelerating Difference programme, we assist the career progression of our female employees through coaching and group dialogue sessions. Our Women’s Leadership Initiative, one of our Employee Resource Groups, supports a culture of inclusion and aims to empower women to achieve their potential. It now has 2,721 members globally, with new groups launching in Africa, Europe and Singapore during 2015.

In 2015 women represented

52% of recruits42% Management17% Corporate Executive Team

to our Future Leaders programme 29% Our Board

In 2015 women made up

47% of GSK businessesGrade 7 and up inAustralia

Consumer Healthcare

Pharmaceutical

ConsumerManufacturing

PharmaceuticalManufacturing

“I would encourage anyone with an interest in science to consider the pharmaceutical industry as an avenue for finding a fulfilling role for a curious mind. I’ve been working in the medical directorate at GSK for almost 18 months, and I still read respiratory journals with a constant hunger for more information. I still feel that I am part of the research world, but now I am part of a team at the global industry leader in respiratory medicine. It is a wonderful feeling to be part of a company which provides medicines that can help to change people’s lives; GSK is a science-led company which constantly strives to better the management of disease, and it is a privilege to be part of this matrix.”

Nessa Banville, Medical Science Liaison, Pharmaceuticals

Health for all Our peopleOur approach Our behaviour Our planet

Our People

Community investmentWe continue to make donations to local charities in recognition of the communities in which we operate. In 2016 our global community investment totalled £210.2 million, an increase from £208.3 million the previous year.

These global contributions comprised £67.3 million cash, £127.2 million of product and in kind donations to support humanitarian aid and £3.4 million in volunteering time and expertise. Management of these global contributions accounted for the remaining £12.3 million.

In Australia, we provided more than $460,000 in donations to organisations including the National Youth Science Forum, Foodbank and Save the Children Australia.

Closing the gap in digital techThe impact of rapidly evolving digital tech on science innovation is continuing to drive a lot of disruption within the healthcare industry and it’s important for both men and women to contribute to this disruption equally.

As such, in 2016 we partnered with BlueChilli on SheStarts, to help close the gender gap for digital tech entrepreneurs.

Women remain grossly under-represented in the world of start-ups – the place where the future’s most innovative, high potential businesses are being created – making up as little as between 14%-24% of Australian start-up founders.

SheStarts offers female entrepreneurs a huge opportunity to make their start-up ideas a reality. In addition to $100k

each in pre-seed capital and a spot in its accelerator program, SheStarts provides ten women - selected from a national talent search to find the best ideas to solve major global challenges and tap into disruptive market opportunities – with access to leading corporate partners offering specialist insights and ready-made opportunities for customer testing and distribution at launch.

GSK remains committed to driving digital innovation in the healthcare sector, not just through R&D, but also by developing new business ideas and processes. Partnering with BlueChilli ‘SheStarts’ is just one of the ways in which we’re bringing this commitment to life, by facilitating even more innovative thinking and building the digital capabilities of our employees.

For more information visit: au.gsk.com and search SheStarts

Gender DiversityAt GSK, creating an inclusive organisation that respects the diversity of our patients, the communities we serve and our employees is a key focus.

The very essence of successful science innovation relies on diversity of perspectives and thought to find the new solutions.

In 2016 women represented

53% of recruits40% Management17% Corporate Executive Team

to our Future Leaders programme 36% Our Board

In 2016 women made up

46% of GSK businessesGrade 7 and up inAustralia

Consumer Healthcare

Pharmaceutical

ConsumerManufacturing

PharmaceuticalManufacturing

11 Responsible Business Highlights Report 2016 | GSK Australia

We need a talented and motivated workforce to deliver against our strategy. To achieve this, we strive to attract the best people and to create an environment that empowers and inspires.

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12 Responsible Business Highlights Report 2016 | GSK Australia

Spotlight: Pulse Assignment

The PULSE Volunteer Partnership is GSK’s flagship skills-based volunteering initiative. Since its launch in 2009, over 600 GSK employees from 60 different countries have experienced PULSE assignments. Working on assignments aligned with the UN Sustainable Development Goals of ‘Good Health’ and ‘Quality Education’, our employees use their professional skills to help create positive, sustainable change for more than 110 of our partner non-profit organisations and the communities they serve.

MoniqueMonique George, a member of the GSK Australia Sales Excellence Team was selected as a 2016 PULSE volunteer. She was assigned a six-month placement with Leonard Cheshire Disability International, based in their offices in Lusaka, Zambia. For her assignment Monique worked on a simple but critical deliverable of the Kafue Project, which targeted 12 schools in the district with the aim of creating access to equipment and education for 180 children with disabilities.

In the following blog excerpt Monique describes some of the challenges, emotions and achievements she experienced during her time with Leonard Cheshire.

After conducting a very successful project review meeting, it was evident to the team that we had some great opportunities to work on. Never has the GSK skill of utilising ADP (Accelerating Delivery and Performance tools) and asking the ‘5 Whys’ felt as effective and impactful as when it uncovered a barrier to getting close to 100 children access to medical equipment.

Most excitingly we left the project review meeting with something I could really sink my teeth into. It was feeling like we were moving from treading water in the problem zone to powering through into solutions.

…What became apparent very quickly was there was little to no interest in expediting the distribution of these materials to the kids at the schools we were working with.

After copping a few hits, and it feeling like a slug would beat us to the finish line, my colleague and I walk into a meeting to procure some quotes for hearing aids for 22 children we had

identified. The hurt and pain in my brain from needing things to happen dissolves away when we met Alfred and hear those magical words he spoke; “Let me tell you what I can do for you…”.

The next weeks are now filled with clarity and purpose, and a sense of optimism that feels damn good. The demons of failure are far behind me now. I have a spring in my step and everything in my head says this is how it should be. Finding the connections and unlocking the potential to make a difference. This is where I know I can make a difference.

Now it is just logistics and planning and engaging the right people to pull this off. The best part of it all, knowing the difference made is going straight to the kids I met weeks ago. If my heart broke a little when I first surveyed the area when I first arrived, it is soaring with possibilities now.

It took the right question to the right person; tell us what you do? Then it was a matter of applying that all important skill of listening. That is when it all happened. The jackpot moment.

More information about GSK’s PULSE program is available at gskpulsevolunteers.com

Our people Our behaviour Health for all Our approach Our planet

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AgnesAgnes Ong, Area Finance Operations Director based in Singapore, spent three months on a PULSE assignment with Save the Children Australia (SCA), at their Melbourne head office.

Agnes’ major task during her assignment was to establish a realistic view of the profit and loss of core activities. To do this, Agnes would need to use her financial expertise to understand the key activity drivers and the cost base of all the SCA departments and company support functions, then allocate the costs against the respective income generators.

TamsinTamsin Davidson, Senior Clinical Research Associate completed her 2016 assignment in Kigali and Rwinkwavu, Rwanda working with Partners In Health (PIH). In her role as an Informatics Consultant, Tamsin worked to create a long-term strategy and implementation plan for the informatics team to improve data collection, cleaning, storage, and utilisation. This included organising and analysing a range of PIH’s incoming data such as internally collected data, data from the Rwandan Ministry of Health and community data.

Responsible Business Highlights Report 2015 | GSK Australia and New Zealand11

Our peopleWe invest in our people to ensure the long-term sustainability of our business. In order to help us tackle the biggest global health challenges, we need a talented, motivated and resilient workforce.

Our aim is to create a working environment where employees feel valued, respected, empowered and inspired. Listening to and supporting our employees has been particularly important during a year of significant change in the business.

We take a progressive approach to developing leaders, and help our employees learn new skills and gain new experiences to support their personal ambitions and drive the business forward.

Combining development opportunities with volunteering, for example through our PULSE programme, benefits our people, our business and our non-profit partners.

Community investmentWe continue to make donations to local charities in recognition of the communities in which we operate.

In 2015 our global community investment totalled £208.3 million, an increase from £201.5 million the previous year. These global contributions comprised £56.6 million cash, £136.9 million of product and in kind donations to support humanitarian aid and £3.7 million in volunteering time and expertise. Management of these global contributions accounted for the remaining £11.1 million.

In Australia, we provided more than $625,000 in donations to organisations including the National Youth Science Forum, Foodbank and Save the Children Australia. $150,000 of this came from our Opiates business who generously donated to community charities in regional Victoria and Tasmania following the transfer of GSK’s Opiates business to Sun Pharmaceuticals.

In New Zealand, we provided more than $NZD65,000 to local community organisations including KidsCan New Zealand, YouthLine and Body Positive New Zealand.

Listening to employeesIn 2015 more employees than ever before shared their views in our global employee survey with a 78 per cent response rate, up from 72 per cent in 2012, providing the company with valuable feedback.

Results from the survey told us that our employees are clear on their accountabilities and feel empowered to perform their roles in the right way.

The research also showed that GSK ranks higher than the external benchmark in two important areas: managers’ support of work/life balance within their teams and in communication.

Whilst engagement levels have fallen, which was expected given the amount of significant change at GSK in the last 12 months, they continue to remain positive.

Gender diversityWe aim to improve the gender balance by encouraging more women to join our business and develop as leaders.

Through our global Accelerating Difference programme, we assist the career progression of our female employees through coaching and group dialogue sessions. Our Women’s Leadership Initiative, one of our Employee Resource Groups, supports a culture of inclusion and aims to empower women to achieve their potential. It now has 2,721 members globally, with new groups launching in Africa, Europe and Singapore during 2015.

In 2015 women represented

52% of recruits42% Management17% Corporate Executive Team

to our Future Leaders programme 29% Our Board

In 2015 women made up

47% of GSK businessesGrade 7 and up inAustralia

Consumer Healthcare

Pharmaceutical

ConsumerManufacturing

PharmaceuticalManufacturing

“I would encourage anyone with an interest in science to consider the pharmaceutical industry as an avenue for finding a fulfilling role for a curious mind. I’ve been working in the medical directorate at GSK for almost 18 months, and I still read respiratory journals with a constant hunger for more information. I still feel that I am part of the research world, but now I am part of a team at the global industry leader in respiratory medicine. It is a wonderful feeling to be part of a company which provides medicines that can help to change people’s lives; GSK is a science-led company which constantly strives to better the management of disease, and it is a privilege to be part of this matrix.”

Nessa Banville, Medical Science Liaison, Pharmaceuticals

Health for all Our peopleOur approach Our behaviour Our planet

13 Responsible Business Highlights Report 2016 | GSK Australia

“ I have always wanted to contribute in a way where I can use my skills to make an impact on the community. This PULSE assignment with SCA is perfect for that because I get to apply my financial skills to provide support to the NGO, and at the same time, I am able to witness first hand, the inspiring impact the volunteers and our partnership have on the communities.”

“ I realised how difficult it was to raise funds, how competitive the fund raising scene is and how small reserves NGOs have to work with.”

“ PULSE is about changing yourself, changing the community and changing GSK. It certainly changed me. Hopefully I’ve brought positive change to the Rwandan community and I’m returning to GSK with a new perspective.”

Agnes Ong, Area Finance Operations Director Singapore

Tamsin Davidson, Senior Clinic Research Associate

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New industry business model a first for Australian pharmaThree key changes came into effect at GSK Australia on January 1st, representing a fundamental shift in our local business model.

Increasing peer-to-peer discussions with GSK medics: As technical experts on our medicines and vaccines we’re responsible for explaining them. To that end, we have increased the number of doctors and academics that are part of our team to provide educational support.

Moving to independent medical education: Medical education will continue to be supported by GSK where educational gaps are identified and third parties have robust propositions to address them. However, this support will now be at “arm’s length” via medical education partners with no involvement from GSK.

No direct payments to healthcare professionals: GSK has now phased out payments to healthcare professionals to speak on GSK’s behalf about our prescription medicines and vaccines or the diseases they help to treat or prevent. Instead GSK medical staff, as experts on our products, will have an increased role in external communication.

#1 on Fortune’s ‘Change the World’ companies list In August, FORTUNE Magazine published its 2016 list of companies that are changing the world, and we were honoured to be ranked as number one.

The Fortune ‘Change the World’ list recognises 50 companies across the globe that are tackling major societal problems and significantly improving lives as a function of their business strategy. The companies featured in the list are evaluated and ranked based on measureable social impact, the economic benefit brought to the company by its socially impactful initiatives and the degree of innovation involved in the effort.

Our ranking reflects the dedication and commitment of our people around the world to modernise the way we do business. We’ve changed how we incentivise our sales professionals, furthered our partnership with Save the Children, gained a positive scientific opinion for our malaria vaccine candidate, opened up access to our intellectual property and committed to reinvesting 20% of our profits made in Least Developed Countries back into strengthening their health systems.

At the heart of FORTUNE’s “Change the World” list is a belief that good business is also good for society. Our focus on improving access and affordability, regardless of where people live or their ability to pay, makes both moral and business sense.

GSK tops Access to Medicines list for fifth consecutive yearNovember saw GSK ranked first in the Access to Medicine Index for the fifth consecutive time, taking a leadership position in research & development; pricing, manufacturing and distribution; and product donations.

The Access to Medicine Index is a major initiative of the Access to Medicine Foundation, an international not-for-profit organisation, established in 2004 and dedicated to improving access to medicines. The Index provides an overall ranking of 20 pharmaceutical companies who are measured across a range of strategic and technical areas and also analyses industry trends in commitments, transparency, performance and innovation.

The 2016 Index described GSK as the most access-oriented company, recognising our efforts to implement equitable pricing strategies for more medicines and our long-standing commitment to developing products and technologies for the benefit of global health.

The Index also noted the significant changes we’ve made to our commercial model to lead the industry in modernising how we sell and market our medicines, such as no longer paying doctors to speak on our behalf about our prescription medicines or vaccines and removing individual sales targets for our pharmaceutical representatives. We are proud to have achieved an improved score on the 2014 Index and to have been ranked among the top three in all but one of the seven categories.

Responsible Business Highlights Report 2015 | GSK Australia and New Zealand15

Andrew Weekes, Medical Director, GSK Australia Pharmaceuticals“Data transparency of research or commercial practices is not an easy principle to put into practice, but we are seeing positive results. GSK was also the first pharmaceutical company in Australia to publish aggregated payments to healthcare professionals, and in 2016 we will stop payments to healthcare professionals for them to talk about our prescription medicines on our behalf.

Opening access to our data has not been quick or easy – we’ve been on this for more than a decade and there is still more work to be done.” 

Ensuring ethical interactionsWe are committed to engaging ethically and transparently with political and other key stakeholders.

Political advocacy We do not make contributions to political parties in Australia or New Zealand.

In 2015, GSK was ranked in the top three most transparent FTSE 100 companies by Transparency International in its Corporate Political Engagement Index. The Index assesses how open companies are about their political engagement and the quality of their reporting on how their political activities are governed, managed and implemented.

Engaging with patient advocacy groups We engage with, and support, patient organisations to gain insights that enable us to develop products and advocate for policies that better meet patient needs. Our new Global Standard for Interactions with Patient Organisations outlines how we work with patient groups, collaborate on projects and gather insights ethically and transparently. Funding from GSK cannot exceed 25 per cent of a patient group’s annual revenue and, to respect their independence, we do not seek endorsement or promotion of our medicines. We publish all information (financial and non-financial) about the support we provide to patient organisations on our website. For more information about how we have supported patient advocacy groups in 2015 see the Health for All section.

Adhering to internal and industry standardsGSK has a robust global Code of Conduct as well as other strict internal compliance mechanisms which we expect all our employees to adhere to. We also abide by a Code of Practice for Promotion and Customer Interactions. This code ensures our scientific engagement and the marketing of our products are driven by our company values.

As well as meeting our own high standards, we deliver our work in compliance with the operational standard set by Medicines Australia, the Australian Self Medication Industry and the New Zealand Self Medication Industry.

In 2015 we had no breaches of these industry standards for either Australia or New Zealand.

We advertise our prescription medicines directly to consumers in New Zealand. Aside from the United States of America, direct to consumer advertising is not permitted anywhere else in the world including Australia.

Health for allOur approach Our behaviourOur people Our planet

Our Behaviour

14 Responsible Business Highlights Report 2016 | GSK Australia

In 2016, GSK Australia made payments totalling $2.2 million to healthcare professionals and health-related organisations for grants, sponsorships and consultancy fees related to chairing and speaking at meetings, assistance with training, medical education and participation in advisory boards. This is a significant decrease compared to 2015 ($3.6 million).

Our values underpin everything we do – from ensuring rigorous safety standards to how we interact with healthcare professionals.

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Investing in studentsWe continue to play a leading role in inspiring young people to get into science, technology, engineering and maths. As a research-led healthcare company we feel well placed to raise awareness of and provide a range of career opportunities.

Bringing science to the classroomEmployees at our Boronia Pharmaceutical manufacturing site turned classrooms into ‘science labs’ and led science lessons in local schools through our corporate volunteering programme ‘Orange Day’.

During these sessions, GSK showed students how medicines are tested using science such as chromatography, the science of separation.

By bringing science to the classroom as part of our ongoing community investment, we hope more students will consider science as a future career.

National Youth Science ForumIn 2016 GSK continued its partnership with National Youth Science Forum (NYSF) to promote science and raise awareness of the breadth of science-related careers among Year 11 and 12 students across Australia. As part of the partnership GSK Australia hosted tours for NYSF students of the Boronia manufacturing facility.

Industry Based LearningIn Australia, we supported 50 Industry Based Learning (IBL) students in 2016 working across all areas of the business including marketing, finance, HR and procurement.

GraduatesWe recognise the importance of investing in the future leaders of tomorrow and we’re committed to providing opportunities for emerging talent. Through our Future Leaders Program nine graduates joined us in preparation for a future career as a leader in healthcare.

We recognise the future of our business ultimately lies in the hands of today’s students and we want them to be as energised as we are.

Responsible Business Highlights Report 2015 | GSK Australia and New Zealand15

Andrew Weekes, Medical Director, GSK Australia Pharmaceuticals“Data transparency of research or commercial practices is not an easy principle to put into practice, but we are seeing positive results. GSK was also the first pharmaceutical company in Australia to publish aggregated payments to healthcare professionals, and in 2016 we will stop payments to healthcare professionals for them to talk about our prescription medicines on our behalf.

Opening access to our data has not been quick or easy – we’ve been on this for more than a decade and there is still more work to be done.” 

Ensuring ethical interactionsWe are committed to engaging ethically and transparently with political and other key stakeholders.

Political advocacy We do not make contributions to political parties in Australia or New Zealand.

In 2015, GSK was ranked in the top three most transparent FTSE 100 companies by Transparency International in its Corporate Political Engagement Index. The Index assesses how open companies are about their political engagement and the quality of their reporting on how their political activities are governed, managed and implemented.

Engaging with patient advocacy groups We engage with, and support, patient organisations to gain insights that enable us to develop products and advocate for policies that better meet patient needs. Our new Global Standard for Interactions with Patient Organisations outlines how we work with patient groups, collaborate on projects and gather insights ethically and transparently. Funding from GSK cannot exceed 25 per cent of a patient group’s annual revenue and, to respect their independence, we do not seek endorsement or promotion of our medicines. We publish all information (financial and non-financial) about the support we provide to patient organisations on our website. For more information about how we have supported patient advocacy groups in 2015 see the Health for All section.

Adhering to internal and industry standardsGSK has a robust global Code of Conduct as well as other strict internal compliance mechanisms which we expect all our employees to adhere to. We also abide by a Code of Practice for Promotion and Customer Interactions. This code ensures our scientific engagement and the marketing of our products are driven by our company values.

As well as meeting our own high standards, we deliver our work in compliance with the operational standard set by Medicines Australia, the Australian Self Medication Industry and the New Zealand Self Medication Industry.

In 2015 we had no breaches of these industry standards for either Australia or New Zealand.

We advertise our prescription medicines directly to consumers in New Zealand. Aside from the United States of America, direct to consumer advertising is not permitted anywhere else in the world including Australia.

Health for allOur approach Our behaviourOur people Our planet

Our Behaviour

15 Responsible Business Highlights Report 2016 | GSK Australia

Since 2012 approximately 2000 schoolstudents have toured our Boroniafacilities. The tours have allowed themto see how life-saving medications aremade as well as examples of scienceinnovation in action, such as our blow-fill-seal vaccine technology.

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The impact of the environment on our health is undeniable. As a global healthcare company we continue to look for ways to help tackle the causes and effects of environmental change as part of our work to deliver health for all.

We remain committed to our ambitious environmental goals to reduce carbon, water and waste and to become a carbon neutral value chain by 2050.

Our global goals:We aim to reduce our environmental impacts across our value chain while extending access to our products, by minimising our carbon footprint, water use and operational waste.

Since 2010 we have made good progress towards our environmental goals and a cleaner future and we continue to look for ways to work more efficiently and reduce consumption.

In 2016 we were recognised as a global leader in both the CDP Climate and Water A Lists. Only 193 companies (9% of applicants) made the Climate A List and

we were one of only 24 (3% of applicants) to make the Water A List.

Both A Lists were released as part of wider reports into corporate action on carbon reduction and water waste. The reports examine how, by managing environmental risks and opportunities, businesses can significantly contribute

Responsible Business Highlights Report 2015 | GSK Australia and New Zealand18

Waterconsumption (kL)

Boronia, Victoria

Ermington, Sydney

+3.2% -1.4%

CO2emissions (kg)

Boronia, Victoria

Ermington, Sydney

-2.9% +2.2%

Total wastegenerated (t.)

Boronia, Victoria

Ermington, Sydney

-8.0% -4.5%

Local environmental sustainabilitycomparisons - 2014-2015:

Deforestation Deforestation is a major contributor to climate change. We are taking steps to ensure that raw materials such as wood-based packaging materials and palm oil are sourced responsibly.

Globally, we have been working with the Rainforest Alliance to map risk in our packaging supply chain. We used this analysis to support our new sourcing standard for packaging, and we regularly assess suppliers to ensure they meet GSK standards1. In 2015, 71 per cent of paper packaging materials used in our operations were sourced responsibly, an increase of 6 per cent from 2012.

Carbon Trust We are working closely with the Carbon Trust to quantify the carbon footprints of our 40 biggest-selling brands globally at the various stages of the value chain. Patient use of our metered dose inhalers is the most intensive activity across our whole portfolio, due to the aerosol propellant used to administer the medication being a powerful greenhouse gas. We are continuing to explore ways to reduce these impacts while extending access to essential medication.

We are still the only pharmaceutical company to hold the Carbon Trust’s Carbon Standard for cutting carbon emissions, and its Water Standard for reducing water use across our operations globally.

Health for all Our planetOur approach Our behaviourOur people

Our Planet

16 Responsible Business Highlights Report 2016 | GSK Australia

* Excluding Novartis, our footprint has remained flat from 2010-2015 despite the volume of medicines, vaccines and consumer healthcare products shipped from our factories having increased by approximately 40% over the same period.

** Our most recently available Scope 3 data is from 2015. The 2016 data will be published on gsk.com in late 2017.

An increase of 8.5% from 2010 baseline*8.5%

2016 In 2016, we revised our calculation method for our Scope 3 emissions with the current GHG protocol methodology.**

A decrease of 23% from 2010 baseline

A decrease of 3% from 2015

A decrease of 4% from 2015

23%

3%

A decrease of 23% from 2010 baseline 23%

4%

CarbonneutralSupply chainusing watersustainably

Zero waste

Reduce our carbon footprint(CO2 emissions)

Reduce our water impact

Reduce and recycle waste

2015

2010

2050

An increase of 8.5% from 2010 baseline*8.5%

2016 In 2016, we revised our calculation method for our Scope 3 emissions with the current GHG protocol methodology.**

A decrease of 23% from 2010 baseline

A decrease of 3% from 2015

A decrease of 4% from 2015

23%

3%

A decrease of 23% from 2010 baseline 23%

4%

CarbonneutralSupply chainusing watersustainably

Zero waste

Reduce our carbon footprint(CO2 emissions)

Reduce our water impact

Reduce and recycle waste

2015

2010

2050

An increase of 8.5% from 2010 baseline*8.5%

2016 In 2016, we revised our calculation method for our Scope 3 emissions with the current GHG protocol methodology.**

A decrease of 23% from 2010 baseline

A decrease of 3% from 2015

A decrease of 4% from 2015

23%

3%

A decrease of 23% from 2010 baseline 23%

4%

CarbonneutralSupply chainusing watersustainably

Zero waste

Reduce our carbon footprint(CO2 emissions)

Reduce our water impact

Reduce and recycle waste

2015

2010

2050

Time

2016 progress towards global sustainability goals

An increase of

8.5%

from 2010 baseline*

A decrease of

23% from 2010 baseline

A decrease of

23%

from 2010 baseline

In 2016, we revised our calculation method for our Scope 3 emissions with the current GHG protocol methodology.**

A decrease of

3%

from 2015

A decrease of

4% from 2015

Aim for 2050 Carbon neutral Supply chain using water sustainably

Zero waste

GSK Boronia’s environmental sustainability statistics:

CO2 Energy-usage related CO2

emissions for 2016 were

12,845

5%

tonnes

an increase of

from 2015

Increased production and a minor

mechanical fault resulted in a slight rise

in the overall emissions.

WaterWater-usage in 2016 was

31,632 kL

A negligible change

from 2015

A zero increase in water usage was

maintained despite increased production

and reduced rainfall and rainwater harvest.

WasteTotal waste generated at the Boronia

site in 2016 was

1,440

11%

tonnes

a decrease of

Boronia’s total waste was comprised of

99 tonnes to-landfill, 1208 tonne recycled

and 133 tonne of hazardous waste.

from 2015

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Since 2010, more than 90 tertiary-level students have gained real-world experience through internships between MIPS and GSK. Many of whom have gone on to obtain positions with GSK or other companies within a short period of completing their d egrees.

17 Responsible Business Highlights Report 2016 | GSK Australia

World-class medicine manufacturing in Victoria

The pharmaceutical manufacturing sector employs thousands of workers directly, and since 2009, GSK has invested over $100 million on expanding our manufacturing in Victoria.

Through our 2016 financial and in-kind support for the Medicine Manufacturing Innovation Centre (MMIC), we’re building on seven years’ of successful partnership with the Monash Institute for Pharmaceutical Science (MIPS) and working to maintain Victoria’s global competitive advantage in pharmaceutical manufacturing, by developing key skills and support for commercial products and processes.

“Our industry operates in a highly competitive environment internationally, and Government programmes like the Medicine Manufacturing Innovation Centre have an important role to play in improving Australia’s position.” – Anne Belcher, VP and GM GSK Australia

At MMIC, next generation talent will be trained through joint mentoring of project-employed researchers and undergraduate student placements to develop specialist skills in pharmaceutical technology, Good Manufacturing Practice (GMP) and analytical troubleshooting.

“The launch of the Medicine Manufacturing Innovation Centre sends a strong signal that the Victorian government wants to work with the Australian pharmaceutical industry to accelerate innovation and is an opportunity for Government funding to stimulate further investment.” – Anne Belcher, VP and GM GSK Australia

Since 2010, more than 90 tertiary-level students have gained real-world experience through internships between MIPS and GSK. Many of whom have gone on to obtain positions with GSK or other companies within a short period of completing their degrees.

Did you know the pharmaceutical industry spends approximately $1 billion on R&D in Australia each year and is the second largest exporter of manufactured goods in Australia, at $3bn a year?

Our people Our behaviour Our people Health for all Our approach Our planet

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18 Responsible Business Highlights Report 2016 | GSK Australia

Our approach Health for all Our people Our behaviour Our planet

The World Health Organisation has declared Zika to be a public health emergency of international concern.

GSK has been assessing how we can best contribute to a response and we are now preparing to evaluate a new vaccine technology for Zika known as SAM (self-amplifying mRNA).

Working in collaboration with the Vaccine Research Center at the National Institutes of Health, we will explore SAM in laboratory-based studies before transitioning to clinical research if successful.

We believe that this novel technology may have the potential to induce protective immunity against Zika, but we have a long journey ahead of us. Vaccine research and development is a lengthy process, typically taking 10-15 years.

In the interim and to complement our research efforts, we are also working with our humanitarian partners in the region, Save the Children and AmeriCares. Through these partnerships we are continuing to support prevention and education efforts which are vital in tackling the spread of the virus at a community level.

Zika, along with a number of other recent outbreaks such as Ebola, show how essential it is that the world takes a proactive approach to identify and respond to future public health threats in advance of outbreaks. This preparedness will go a long way in preventing devastating consequences for human health, economies and global security and at GSK, we continue to seek out new and innovative ways to be able to drive and support these kinds of strategies.

Our response to the Zika virus outbreak

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www.gsk.comHere you will find downloadable PDFs of:

• Annual Report 2015

• Annual Summary 2015

• Responsible Business Supplement

All money is in Australian Dollars unless otherwise specified.

Front cover: Bill Andrews, HR Business Partner, Consumer Healthcare Australia.

The way we conduct our business is just as important as our financial performance. Our success depends on our ability to research and develop innovative medicines, vaccines and consumer healthcare products and make them more accessible for more people in a responsible way.

Our approach to responsible business

Contact us

Responsibility is integrated across every area of our business and remains central to our company strategy.

The Responsible Business Highlight Report provides context and detail for how we address what we consider to be key priorities for running a responsible business: Health for

all, Our behaviour, Our people, Our planet. These key areas were selected because they align with macro economic and social trends that are impacting contemporary business and wider society.

In an effort to provide context to our local business in Australia and New Zealand and

to demonstrate how we work as a global company, we have included references to both global and local initiatives in this document. More information about our global governance, sustainability targets and details about how we are performing as a global healthcare company can be found at www.gsk.com

Pharmaceuticals AustraliaLevel 3, 436 Johnston Street, Abbotsford, VIC, 3067Tel: + 61 3 9721 6000 Fax: + 61 3 9729 5319

www.gsk.com.au GlaxoSmithKline Australia Pty Ltd © ABN 47 100 162 481

Consumer Healthcare ANZ82 Hughes Avenue, Ermington, NSW, 2115Tel: + 61 2 9684 0888 Fax: + 61 2 9684 1018 www.gsk.co.nz GlaxoSmithKline NZ Limited © Co. No 1235481

19 Responsible Business Highlights Report 2016 | GSK Australia

Page 20: Responsible Business Highlights Report 2016 · PDF file · 2017-07-03gap, by championing the role of women in. tech, ... company list 14 GSK tops Access to Medicines list 14 ... Voltaren,

www.gsk.comHere you will find downloadable PDFs of:

• Annual Report 2015

• Annual Summary 2015

• Responsible Business Supplement

All money is in Australian Dollars unless otherwise specified.

Front cover: Bill Andrews, HR Business Partner, Consumer Healthcare Australia.

The way we conduct our business is just as important as our financial performance. Our success depends on our ability to research and develop innovative medicines, vaccines and consumer healthcare products and make them more accessible for more people in a responsible way.

Our approach to responsible business

Contact us

Responsibility is integrated across every area of our business and remains central to our company strategy.

The Responsible Business Highlight Report provides context and detail for how we address what we consider to be key priorities for running a responsible business: Health for

all, Our behaviour, Our people, Our planet. These key areas were selected because they align with macro economic and social trends that are impacting contemporary business and wider society.

In an effort to provide context to our local business in Australia and New Zealand and

to demonstrate how we work as a global company, we have included references to both global and local initiatives in this document. More information about our global governance, sustainability targets and details about how we are performing as a global healthcare company can be found at www.gsk.com

Pharmaceuticals AustraliaLevel 3, 436 Johnston Street, Abbotsford, VIC, 3067Tel: + 61 3 9721 6000 Fax: + 61 3 9729 5319

www.gsk.com.au GlaxoSmithKline Australia Pty Ltd © ABN 47 100 162 481

Consumer Healthcare ANZ82 Hughes Avenue, Ermington, NSW, 2115Tel: + 61 2 9684 0888 Fax: + 61 2 9684 1018 www.gsk.co.nz GlaxoSmithKline NZ Limited © Co. No 1235481

www.au.gsk.com

Front cover: Sheryl Page, Vaccines Director, GSK Pharmaceuticals Australia