SOURCE: Teva Pharmaceutical
DESCRIPTION:
- Environmental, Social and Governance (ESG) efforts integrated into business strategy with strengthened oversight, robust targets and sustainability-linked bond (SLB)
- Progress toward targets to improve access to medicines, including launch of four programs to-date (50% of 2025 target) and minimize environmental impact, with 13% reduction of scope 1 and 2 greenhouse gas (GHG) emissions (more than 50% of 2025 target)
- New disclosures on scope 3 GHG emissions, pay equity and responsible supply chain as well as three new position statements
TEL AVIV, Israel, May 10, 2022 /3BL Media/ - Teva Pharmaceutical Industries Ltd. (NYSE and TASE: TEVA), a leading global pharmaceutical company providing medicines to nearly 200 million people daily, published its 2021 ESG Progress Report today. The report details how Teva further integrated ESG into its business strategy—implementing a strengthened ESG governance structure and setting 13 ambitious targets related to access to medicines, ethics, environment and responsible supply chain, some of which are now linked to the company’s financing strategy and executive compensation.
“As one of the world's largest manufacturers of generic medicines, ESG is integral to the long-term strategy of our company and is part of everything we do," said Kåre Schultz, President & CEO of Teva. “Our ESG Progress Report details our actions in 2021, which include issuing a $5 billion sustainability-linked bond, tying our financing strategy to access to medicines and environmental targets. We are in a unique position to help create a healthier future, bringing our essential medicines within reach for more people and reinforcing business integrity through our compliance and ethics policies and trainings.”
This year’s ESG Progress Report offers a comprehensive view of ESG at Teva, with new disclosures related to scope 3 emissions, pay equity and the company’s responsible supply chain, and continues to align with leading reporting standards—the Global Reporting Initiative (GRI), Sustainability Accounting Standards Board (SASB) and Task Force on Climate-Related Financial Disclosures (TCFD).
The ESG Progress Report shares Teva’s progress, including:
- Integrating ESG further into the business with a $5 billion sustainability-linked bond (SLB): Upon issuance, Teva’s SLB was the largest in the world, the first in the pharmaceutical industry linked to both social and environmental targets and the first from a generic medicines company. The SLB holds Teva accountable to reducing scope 1 and 2 GHG emissions by 25% and increasing access to essential medicines for patients in low- and middle-income countries (LMICs) by 150% by the end of 2025.
- Making medicines available and accessible to those who need them: Teva has launched four access to medicines programs to-date, 50% of its 2025 target, including an expanded partnership with Direct Relief and Global HOPE to provide critical treatments for children with cancer and blood disorders across sub-Saharan Africa and new programs in France, Israel and Ghana. Last year, the company also had 585 marketing authorizations approved in LMICs and donated more than $487 million worth of medicines.
- Minimizing environmental impact across Teva's business and value chain: Since 2019, Teva has reduced its scope 1 and 2 GHG emissions by 13%, more than half of its 2025 target. Since 2020, the company also reduced its scope 3 GHG emissions by 5% (20% of 2030 target), increased its total proportion of energy from renewable sources by 4% (to 33%) and improved energy efficiency by 6%. In this same timeframe, it achieved an 8% reduction in both waste from operations and water withdrawal in areas projected to be in water stress.
- Fostering an inclusive workplace: Last year, the representation of women in executive and senior management positions at Teva increased by 1.8%. The company also trained nearly 90% of employees on how to foster an inclusive culture.
- Promoting ethics and operating with integrity: Teva trained more than 20,000 employees (99.6% of those assigned) on ethics. The company published three new position statements outlining its stance on patient safety, responsible supply chain and risk management. Teva was also ranked in the top 1% in the EcoVadis sustainable procurement assessment as a result of its efforts to make more responsible decisions regarding supply chain partners.
Teva’s ESG performance continues to improve across key rating indices—including S&P Global, ISS ESG, EcoVadis and FTSE4Good—which listed Teva among the top 10-20% of companies in its industry in 2021.
Learn more about Teva’s ESG journey in the full 2021 ESG Progress Report.
About Teva
Teva Pharmaceutical Industries Ltd. (NYSE and TASE: TEVA) has been developing and producing medicines to improve people’s lives for more than a century. We are a global leader in generic and specialty medicines with a portfolio consisting of over 3,500 products in nearly every therapeutic area. Nearly 200 million people around the world take a Teva medicine every day, and are served by one of the largest and most complex supply chains in the pharmaceutical industry. Along with our established presence in generics, we have significant innovative research and operations supporting our growing portfolio of specialty and biopharmaceutical products. Learn more at www.tevapharm.com.
Cautionary Note Regarding Forward-looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are based on management’s current beliefs and expectations and are subject to substantial risks and uncertainties, both known and unknown, that could cause our future results, performance or achievements to differ significantly from that expressed or implied by such forward-looking statements. Important factors that could cause or contribute to such differences include risks relating to:
- our ability to impact and effectively execute on our social, economic, environment and governance related strategies and goals; environmental risks; failure to comply with applicable environmental laws and regulations worldwide; our ability to satisfy the targets set forth in our sustainability-linked senior notes and in other sustainability-linked financing instruments that we may issue; the impact of ESG issues on our business; and consequences of climate change;
- our ability to successfully compete in the marketplace, including: that we are substantially dependent on our generic products; consolidation of our customer base and commercial alliances among our customers; delays in launches of new generic products; the increase in the number of competitors targeting generic opportunities and seeking U.S. market exclusivity for generic versions of significant products; our ability to develop and commercialize biopharmaceutical products; competition for our specialty products, including AUSTEDO®, AJOVY® and COPAXONE®; our ability to achieve expected results from investments in our product pipeline; our ability to develop and commercialize additional pharmaceutical products; and the effectiveness of our patents and other measures to protect our intellectual property rights;
- our substantial indebtedness, which may limit our ability to incur additional indebtedness, engage in additional transactions or make new investments, may result in a further downgrade of our credit ratings; and our inability to raise debt or borrow funds in amounts or on terms that are favorable to us;
- our business and operations in general, including: uncertainty regarding the COVID-19 pandemic and the governmental and societal responses thereto; our ability to successfully execute and maintain the activities and efforts related to the measures we have taken or may take in response to the COVID-19 pandemic and associated costs therewith; effectiveness of our optimization efforts; our ability to attract, hire and retain highly skilled personnel; manufacturing or quality control problems; interruptions in our supply chain; disruptions of information technology systems; breaches of our data security; variations in intellectual property laws; challenges associated with conducting business globally, including political or economic instability, major hostilities or terrorism; costs and delays resulting from the extensive pharmaceutical regulation to which we are subject or delays in governmental processing time due to travel and work restrictions caused by the COVID-19 pandemic; the effects of reforms in healthcare regulation and reductions in pharmaceutical pricing, reimbursement and coverage; significant sales to a limited number of customers; our ability to successfully bid for suitable acquisition targets or licensing opportunities, or to consummate and integrate acquisitions; and our prospects and opportunities for growth if we sell assets;
- compliance, regulatory and litigation matters, including: failure to comply with complex legal and regulatory environments; increased legal and regulatory action in connection with public concern over the abuse of opioid medications and our ability to reach a final resolution of the remaining opioid-related litigation; scrutiny from competition and pricing authorities around the world, including our ability to successfully defend against the U.S. Department of Justice criminal charges of Sherman Act violations; potential liability for patent infringement; product liability claims; failure to comply with complex Medicare and Medicaid reporting and payment obligations; and compliance with anti-corruption sanctions and trade control laws;
- other financial and economic risks, including: our exposure to currency fluctuations and restrictions as well as credit risks; potential impairments of our intangible assets; potential significant increases in tax liabilities (including as a result of potential tax reform in the United States); and the effect on our overall effective tax rate of the termination or expiration of governmental programs or tax benefits, or of a change in our business;
and other factors discussed in our Quarterly Report on Form 10-Q for the first quarter of 2022 and in our Annual Report on Form 10-K for the year ended December 31, 2021, including in the sections captioned “Risk Factors” and “Forward-Looking Statements” and in our other reports that we file with the U.S. Securities and Exchange Commission. Forward-looking statements speak only as of the date on which they are made, and we assume no obligation to update or revise any forward-looking statements or other information contained herein, whether as a result of new information, future events or otherwise. You are cautioned not to put undue reliance on these forward-looking statements.
KEYWORDS: esg, ESG Report, Access to Medicines
