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Health, Safety and Environmental Protection

Management processes

The corporate values defined by STADA already in 2019 serve as a guideline for corporate action and are the basis for Company Management’s commitment to health, safety and environmental protection, which are anchored in the internal HSE Policy.

Good corporate governance means not only aligning its decisions and actions with the legal framework, but also taking measures that go well beyond the legal requirements that promote sustainable and responsible action.

For this reason, STADA has established corresponding responsibilities and processes both at Group and location-related levels. To this end, globally valid HSE guidelines are defined at Group level, their implementation is accompanied at the location level and verified by internal or external audits.

At individual production locations, local HSE guidelines and procedures were, in turn, defined that ensure compliance with legal requirements and guarantee continuous improvement in accordance with the principles of Plan-Do-Check-Act. In order to have these processes monitored externally on a regular basis, there are HSE Management Systems with certification in accordance with the relevant ISO standards at approximately 80% of the larger production sites. Other sites have initiated development of ISO-compliant HSE management systems and will continue to do so in the coming year.

The effectiveness and success of the local management systems are also regularly acknowledged through external awards. The Russian location in Obninsk received the nomination from the Kaluga Region Government once again in 2020 as “Environ- mental responsibility for production organization”.

Locations with certified ISO management systems (as of the end of 2020):

Health and occupational safety

Safety and health protection at work are of tremendous importance for STADA. For this reason, the respective local legal provisions represent the minimum standard for the Group. Their implementation and ongoing improvement is ensured by the local HSE management systems.

In the reporting year, the programs at all locations to further improve responsibility and awareness of occupational safety at all hierarchical levels and to enhance the occupational safety culture were continued.

This included the strengthening of “Near Miss” programs (a program to detect and prevent unsafe behavior/unsafe situations) and integrated HSE/Gemba walk-throughs.

With the onset of the Covid-19 pandemic, STADA established a Steering Committee with senior executives that supported the implementation of local protection concepts for both production and sales sites worldwide. Similarly, global reporting of Covid-19 infections has been introduced and the approach in countries regularly coordinated.

In March 2020, STADA introduced mandatory home office work worldwide for several weeks as an immediate measure and flexibly adapted this to the infection situation in the countries on a case-by-case basis during the year based on local conditions. There were also various protective measures, such as the development of occupancy plans for the offices. To further increase employee safety, plexiglas screens were installed as partitions in meeting rooms and open-plan offices. Furthermore, all employees were sent a “health package” with mouth-nose protection masks and health-promoting products.

Extensive measures were taken at all production sites worldwide. In addition to adapting operational procedures to ensure social distancing rules at all workplaces, these also included the obligation to measure the temperatures of all employees and the mandatory requirement to wear mouth/nose protective masks. Further protective measures were introduced with regard to external companies and, depending on the local pandemic situation, extensive possibilities or obligations were introduced for PCR or antigen tests for employees.

In the case of employees who tested positive for Covid-19, operational contacts were identified and quarantined and/or tested for Covid-19 in accordance with local regulations.

Especially in the context of the Covid-19 pandemic, active and intensive communication was of utmost importance. Employee surveys conducted in 2020 showed that employees felt that they had been well informed and protected in the workplace.

Important non-financial performance indicators

In the reporting year, as a result of the broad range of measures, it was possible to significantly reduce the number of accidents (accidents >1 lost work day) as compared to 2019:

In 2020, intensive work was also carried out at all sites to ensure that “Safety first” aspect could be experienced. To this end, annual HSE programs are defined and processed for each site. At the global level, accident investigations were harmonized in 2020 so that accident causes can be uniformly identified and processed across all sites.

STADA employees are offered a broad range of programs for general health protection. Coordination of the measures is carried out locally by the respective locations. These include, for example, health days, flu vaccinations, anti-smoking informational events.

 

1) GOST 12.0.230.1-2015 occupational safety and health protection in connection with GOST 12.0.230-2007.

2) All production locations; accident rate calculated for every 200,000 working hours for accidents >1 lost day (not including commuting accidents).

3) Work-related accidents with lost time >24 h per 200,000 working

Environmental protection

For STADA, responsible entrepreneurship means – in addition to compliance with local environmental regulations – continuously reducing environmental impact and increasing resource efficiency.

Even though the direct environmental impact of the locations are relatively low compared to other industries, there are management systems certified in accordance with ISO 14001 at approximately 80% of the larger locations. As part of the local environmental programs, measures relating to in particular to energy, water/wastewater and waste were planned and implemented accordingly. STADA initiated a global project on the “STADA Carbon Strategy” at the end of 2020. Over the course of this project, the Company will set long-term CO2 targets in the current year and, based on a comprehensive baseline analysis, determine the path to achieve these targets.

In the course of planning new production facilities, environmental and occupational safety requirements are defined in the manufacturer’s specifications during the concept phase and evaluated throughout the tendering process.

Within the framework of the HSE reporting, both absolute and relative, related to production volume, key figures were determined. Compared to financial year 2019, energy consumption and the resulting CO2 emissions were as follows in the reporting year:

Important non-financial performance indicators

In 2020, energy consumption and CO2 emissions increased slightly compared to 2019 primarily for two reasons. Firstly, the increase was due to the acquisitions of the two new production sites in Trinec (Czech Republic) and Bila Tserka (Ukraine). Secondly, the increase was due to the increase in production, which could not be fully offset by the energy efficiency measures.

1) All production

2) Scope 1: Direct emissions (production locations).

3) Scope 2: Indirect emissions from energy purchasing (production locations).