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Environmental Protection and Ecological Sustainability

STADA’s operational environmental protection generally covers the areas of energy, gas, water and waste, focusing in this regard on statutory requirements which are fully complied with. For example, the Company carries out location-based energy assessments and at regular intervals performs energy-efficiency inspections and energy audits in line with the Energy Services Act (Energiedienstleistungsgesetz). The potential for improvement identified in this way is gradually integrated into the planning of renovation and modernization measures. The next scheduled energy audit will take place in the current financial year 2019. Within the scope of its production processes, STADA works with active ingredients and auxiliary materials the improper handling of which could have a potential impact on the environment. In order to consistently prevent impurities as well as the contamination of wastewater, the air or the soil, the Company follows EU-GMP guidelines for its manufacturing practices and produces exclusively at GMP-certified facilities worldwide. At the same time, STADA maintains long-term business relations with those suppliers whose manufacturing processes also conform to the GMP standards (see “Product Safety and Quality – Good Manufacturing Practices”). In addition, STADA aims to source its active ingredients and auxiliary materials from suppliers with established EHS programs and takes measures to survey, review and evaluate their existence and implementation (see “Responsible Corporate Governance and Compliance – Environment, Health and Safety [EHS]”).

 

Resource Efficiency

STADA strives to continuously optimize the environmental balance of its plants. For this reason, the Company observes a high technological standard and considers resource-saving equipment for new and replacement investments in plants in Germany and abroad. Budget administration for this takes place centrally at Group headquarters.

STADA generally follows a two-phase concept in order to identify and realize any possible efficiency increases:

  • The preventative environmental protection concept is integrated into production and starts in the planning phase for manufacturing as well as production facilities. It takes place in the concept phase of a manufacturing process and takes into account material and energy efficiency. This is reflected in the specification sheet sent to the respective equipment manufacturer. Furthermore, formulations which contain raw materials with little negative impact on the environment, such as organic solvents, are generally sought when developing new products so that the production process causes the smallest possible amount of emissions.
  • With regard to existing production facilities, a retrospective evaluation and assessment takes place where appropriate. In this way, depending on the criticality of the environmental impact at each location, existing production units are replaced with new, state-of-the-art solutions, which are also more environmentally friendly.

 

Environmental management process

Since financial year 2018, STADA’s environmental management process has been oriented toward the so-called PDCA cycle (Plan-Do-Check-Act). Accordingly, continuous planning, controlling, monitoring and the improvement of selected operational processes take place. In so doing, the following steps are continuously repeated with the target of realizing consistent improvement:

  • Plan: The consumption figures for energy, water, oil and gas are collected each year to identify potential improvements. The aim here is to first establish a target in the area for which practical improvements can be achieved with appropriate financial expense.
  • Do: Location-dependent measures are carried out to achieve the target efficiently.
  • Check: A target/actual comparison of the planned and achieved objectives takes place.
  • Act: Interim reviews are carried out during the reference period in order to estimate target achievement, and, in the case of an impending failure to meet the target, a review takes place as to whether the requirements and framework conditions need adjustment. In this way, adjustments can still be made during the general assessment phase in order to achieve the target.

In order to identify potential for optimization and to be able to validate resource efficiency, in financial year 2017 STADA began to centrally measure the use of certain energy sources in its key production facilities. At the same time, the Company set the goal for financial year 2018 of reducing its power or energy usage in kWh per package unit of its most productive production sites in Bad Vilbel, Germany, Nizhny Novgorod, Russia, Huddersfield, United Kingdom and Vrsac, Serbia by 1% in comparison to the previous financial year 2017. This aim was achieved at the Vrsac site in Serbia, while energy consumption per packaging unit at the other sites and in total rose slightly compared to the previous year. This was due to opposing factors: due to, among other things, downtimes of individual machines which had to be retrofitted as part of the implementation of the Falsified Medicines Directive and the decreasing reduction of inventories, the number of units produced declined. However, the power requirements of refrigeration machines and ventilation technology increased as, regardless of the machine running time, these systems had to maintain a constant climate in the production and storage sites during the long summer period which saw significantly higher than average temperatures. In consequence of these contrary developments, the target of reducing the power usage in kWh per package unit of the main production sites by 1% in total was not met.