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What are the most material ESG issues, which could have a significant impact on the company’s future financial performance? How are ESG matters / considerations integrated within the business strategy?

• STADA has conducted a materiality assessment and identified the following issues as most material: Quality and safety of products/Pharmacovigilance/Good Governance including ethical and compliant behavior/Human capital including fair working conditions, safety, and employee development as well as environmental protection including resource efficiency.

• STADA has established an ESG KPI dashboard including targets for key ESG issues including product quality/safety, supply, compliance/governance, HR (diversity, safety) as well as environment. In addition, STADA has identified 5 UN SDGs as being most relevant for the company and STADA develops its approach around these 5 UN SDGs.

Where does ESG sit within the organization and is there board oversight? Who has the ultimate responsibility for implementing ESG initiatives?

• ESG and sustainability is of high importance for our company and is part of our top strategic priorities to continue our growth and cultural journey (see STADA Annual Report 2020 page 5).

• Within the schedule of STADA’s Executive Board responsibilities, sustainability and ESG is allocated to the Chief Technical Officer (Board member/CTO). He is heading the Sustainability Steering Committee together with other members of the STADA (Extended) Executive Board (responsible i.a. for Legal/Compliance, Human Resources, Communication, Global Development, Portfolio, Regulatory and Business Development/Licensing as well as Finance).

• The ultimate responsibility for ESG is within the entire STADA Executive Board in line with the legal principle of “joint responsibility”.

Does the company produce, or have any plans to produce, a sustainability report with quantitative ESG data or other disclosure materials?

• Currently, STADA is publishing information on ESG / Sustainability on its website and in its Annual Report. Its Serbian subsidiary Hemofarm is publishing a dedicated Sustainability Report for many years

• In addition, STADA is planning to publish its first digital STADA Sustainability report in the first half of 2022

Does your company have any significant ESG-affiliations?

• STADA is signatory of the UN Global Compact.

• STADA has identified 5 UN SDGs as being most relevant for the company and STADA develops its approach around these 5 UN SDGs.

Describe current approach to resource efficiency including applicable policies, metrics, plans or initiatives undertaken to reduce current usage, as well as any applicable targets:

GHG Emissions: Do you report your scope 1 and scope 2 emissions and do you have a target to reduce this? If, so how do you intend to do so?

• STADA is reporting its scope 1 & 2 emissions and has established internal reduction target to support the 1.5°C target. In 2020, scope 1 emissions totalled 31,000 tons of Co2 eq. (direct emissions production locations) and scope 2 emissions totalled 112,000 tons of CO2 eq. (indirect emissions from energy purchasing production locations.

• The reduction of the company’s carbon emissions is planned to be achieved by a mix of energy efficiency measures, on-site renewable energy projects and the use of renewable energy certificates.

Energy: Do you measure and report total energy consumed, percentage grid electricity and percentage renewable? Do you have any targets to improve energy efficiency and reduce your reliance on the grid e.g. installation of solar?

• STADA is reporting its energy consumption. Energy efficiency increase is covered by individual projects. c) Water: Do you map your supply chain to see if you operate in water stressed regions? Do you measure your water consumption and do you have any policies or targets to reduce this?

• STADA is measuring the water consumption of its sites. The total water consumption is low and not considered as a significant environmental aspect. STADA completed a water stress risk assessment of its production sites (WWF tool) and it revealed no high risks.

Waste: Do you measure and report total amount of hazardous (including SOx, NOx, and VOCs) and non-hazardous medical/pharmaceutical waste? Is this waste incinerated, recycled or landfilled? Have you set any targets to improve this? Do you have any circular economy/recycling initiatives? If so, please provide details.

• STADA is measuring/reporting per site amount of haz/non haz. waster. All waste is treated/disposed of in line with local legal requirements. The disposal path depends on the local legal requirements.

• STADA’s “Sustainable Packaging” Manager is working together with global/local environment functions and product development to consider circular economy/recycling initiatives.

Does the company or its facilities hold any environmental certifications, such as ISO 14001 (Environmental Management), ISO 50001 (Energy Management) or other?

• Approximately 80% of STADA’s larger production sites hold ISO 14001/ISO 45001 certificates.

Describe how product safety is monitored & efforts to reduce the occurrence of compromised products, including any information on product recalls (including no. recalls issued and total units recalled) citations, fines or other significant incidents.

• Product safety is assured through a comprehensive Quality Management system, which is implemented throughout the STADA Group.

• As part of its manufacturing activities, STADA follows the regulations and requirements as stipulated in the Good Manufacturing Practices (GMPs). They define the framework for quality assurance, production processes, and environmental conditions applicable during manufacturing of medicinal products, active pharmaceutical ingredients and cosmetics. Furthermore, STADA holds certifications according to additional international quality management systems such as HACCP and meets ISO standards if required.

• All STADA manufacturing sites hold manufacturing licenses issued by the competent authority of the respective country, where the manufacturing site is located. These licenses are based on a thorough inspection of the competent authority and will only be granted, if compliance with applicable pharmaceutical legislation is demonstrated successfully. License renewal takes place every three years, based on a successful follow up inspection. In addition, all STADA manufacturing sites located outside of the EU and providing product to EU markets, are subject to EU inspections by competent EU authorities. This process assures they also meet EU GMP requirements.

• In addition, some STADA manufacturing sites hold ISO certificates such as ISO 9001 or ISO13485, required to manufacture medical devices. ISO certifications are performed by notified bodies.

• STADA commercial affiliates holding a wholesaler license are subject to regular inspections by the local competent authorities. This assures, all legal aspects related to marketing and distribution of pharmaceutical products in their markets are in line with legal requirements.

• In order to verify compliance with current GMP guidelines, STADA’s suppliers, contract manufacturers, and service providers are part of STADA’s supplier management system. Supplier management at STADA covers the entire supplier life cycle, starting with supplier selection and qualification, as well as covering performance monitoring and supplier retirement.

• Supplier qualification is comprised of elements such as initial information gathering through questionnaires, tests of material samples, onsite audits by STADA auditors and signing of quality agreements. GMP guidelines require that medicinal products can only be manufactured by using materials provided by approved suppliers. • In order to verify compliance with current GMP guidelines, STADA’s suppliers, contract manufacturers, and service providers are subject to audits performed by STADA’s auditors. All finally approved suppliers are included in an approved supplier list.

Do you have a diversity and inclusion policy or targets? If so, please describe. Do you provide the breakdown of employees by gender and race for senior/executives, managers and other levels?

• STADA Group launched a global communication campaign around diversity in 2021 as the topic is important to us. The Group has set targets for gender distribution on management level and reports regularly to Top Management. Race of employees is not captured as data in the HR systems and has therefore no targets

Describe the company’s assessment of employee well-being and satisfaction, including any relevant metrics and initiatives for employee engagement. What percent employee turnover has the company experienced in each of the past three years?

• STADA Group regularly performs employee engagement surveys 2-3 times per year. Participation and engagement levels are above industry benchmark. Employee turnover was: 15% in 2020; 11% in 2019 and 10% in 2018. Training programs are so far organized in each country focusing on production and sales.

How do you engage with the local and international communities in which you operate?

• We regularly organize stakeholder dialogues (workshops, surveys, interviews – on a yearly basis) to discuss STADA’s material topics and business aspects with our key stakeholders (we could put our Materiality Matrix as a proof)

• We are shifting the focus from treatment to prevention. It is the essence of supporting the management of one's own health for each person and supporting the decrease of pressure to the public health care system. We do this through continuous education in the field of prevention and development of healthy lifestyles. Through promoting access to health care we give pieces of advice to people on how to be more responsible for their health and influence the development of awareness of the importance of personal responsibility and responsible consumption of pharmaceutical products. Our corporate site, as well as social networks, offer a handful of tips and stories about prevention and improvement of health, which we try to convey to the professional public (doctors and pharmacists).

• The very nature of generic pharmaceuticals implies that they are just as effective as the originator but at a better price, and therefore more affordable. Simply, that is part of our mission. What we are additionally doing is to continuously optimize the product range so that it is tailored to the actual needs of patients.

Do you have processes for managing customer privacy rights and for safeguarding of security and customer data?

 • STADA respects the privacy rights of employees, customers and other stakeholders. Therefore, personal data are processed for specific business purposes only and secured against unauthorized access. Moreover, STADA takes all necessary actions to treat personal data confidentially and only collect, process and store data according to the provisions of the applicable laws. We expect our employees and our business partners to process personal data according to those principles. More information on data protection can be found in our Code of Conduct and in our Data Protection Notice under Compliance - Company | STADA. 

Do you have a code of ethics to govern your interactions with various stakeholders? What measures have you put in place to prevent conflicts of interest and unethical business practices?

• STADA has a Code of Conduct for all employees (2020_code_of_conduct-en.pdf (

• The company has a comprehensive compliance management system (CMS) implemented comprising of the areas of anti-bribery, anti-trust, data protection, export control and Anti Money Laundering. In the course of this CMS, STADA also has a global policy on conflicts of interest in place.

Which ESG policies (e.g., Anti-bribery, supply chain, whistle-blower, diversity, data protection, climate change, waste management, etc.) have you implemented and how are they monitored?

• From Compliance-side we implemented a global ABAC, global Whistleblower and global data protection policy which are supported by local policies and training measures if needed.

• Compliance with such policies is monitored e.g. through compliance risk assessment questionnaires.

• There is no diversity policy. The topic is addressed via communication campaign around “uniqueness at STADA”.