ESGREPORT
2021

FOREWORD BY OUR CEO
Dear Reader,In many ways, 2021 was a challenging year. The fight against the COVID-19 pandemic continued into
its second year forcing us to adapt to changing circumstances and deal with increased uncertainty. At
DFE Pharma, we managed to quickly act and to keep up with the latest developments in the industry. We
ensured a healthy and safe working environment for our employees who continued to work at oursites. We showed solidarity to our people through a range of targeted company initiatives and efforts.
At the same time, we increased our focus on our sustainability journey through launching ourEnvironment Social and Governance (ESG) Program.
Our ESG Program is a holistic approach that balances the three sustainability pillars through precise
target setting, disclosure, and follow-up. Delivering our top-notch excipient solutions in a sustainable
manner is of strategic importance for us and our customers. As such, DFE Pharma aims to have apositive impact on our society and our planet. This fully aligns with our purpose statement, “Yourmedicine, our solutions. Moving to a healthier world”.
In 2021, we earned the Ecovadis Bronze Medal which shows an above-average sustainability rating
within our sector. This past year’s focus was to assess our current sustainability performance to set
a reference point for further target setting. In our targets, we endorsed the United Nations Sustainable
Development Goals. Furthermore, we received two EcoGrants from our parent company CVC Capital
Ventures which were used to sponsor environmental projects at our production locations.
In 2022, we will set our long-term sustainability targets, and publicly communicate them to our stakeholders,and prepare for SBTI validation – including our 2030 Energy Roadmap. We aim to increase our social
contributions both locally in societies where we operate and globally .
Beyond 2022, we aim to fully embed sustainability in every aspect of our business. With that in mind,
we look forward to engaging and exchanging ideas with you. We invite you to contribute to the DFE
Pharma ESG Program, via contacting: esg@dfepharma.com

Best Regards,Martti Hedman
Chief Executive Officer1

ABOUT THIS REPORTContents
Foreword by the CEO...........................................................................................................1About this report .................................................................................................................2
Our Company DFE Pharma in 2021.....................................................................................3
ESG at DFE Phama...............................................................................................................4At DFE Pharma, we aspire to................................................................................................5
ESG Highlights .....................................................................................................................6
Our ESG Ambitions and Roadmap......................................................................................7
Glossary................................................................................................................................9This report documents the sustainability
activities of DFE Pharma. With the ESG
Program, DFE Pharma aims to fully integratesustainability into its corporate strategy. We
have set ourselves the ambition of being theindustry leader in sustainability.

Sustainably delivering our solutions is very
important to us. We have publicly endorsed
the United Nations Sustainable Development
Goals (SDGs).

As DFE Pharma, we care about healthierpeople and the planet.

ESG

In this ESG Report, DFE Pharma voluntarily
informs its stakeholders in a transparent
manner about its sustainability strategy
and its progress in achieving the set goals.

This report is published in English as a PDF file and appears
annually.

This report covers 2021 Financial Year
(1 January to 31 December).

This report has been prepared in accordance with theGlobal Reporting Initiative (GRI) standards.

ESG stands for Environment, Social andGovernance. These are the three main
dimensions that make up DFE Pharma’s
fields of action.

We have been guided by our company purpose, “Yourmedicines, our solutions. Moving to a healthier world”.
At the heart of our company is striving for holistic health.
Therefore, we selected ESG as the framework for oursustainability strategy.

This report contains forward-looking statements based on DFE Pharma’s assumptions and forecasts. Various known and unknown risks, uncertainties and other factors could lead tomaterial differences between the company’s actual future results, performance or developments and the estimates given here. DFE Pharma does not assume any obligation whatsoever
to update these forward-looking statements or to adjust them to take into account future events or developments.
2

Our Company DFE Pharma in 2021

100+
Years ofheritage2
Shareholders

7Sales
Offices5
Production
Plants440
Employees

24 %GenderDiversity

100+
Active sales
countries

35
Nationalities

658.7 billion
tablets

4ProductGroups

90
kilotons
Product sold500+
Suppliers

4000+
Customers
globally3

ESG AT DFE PHARMA
What is ESG?
ESG stands for Environment, Social and Governance. ESG is a set of standards for the extent
ecological, social and corporate governance aspects are taken into account in the decision-making
process of company. As such, these standards ensure that the company operates responsibly andlimits the impact on the environment and society.

What is our ESG Approach?
We have the following steps.
SelectFramework

Align with
our Purpose

UN Sustainable
Development Goals (SDGs)

Selected 5 out the 17 SDGs
Stakeholder imput

Set Baseline
Validated 2020 numbers

DiscloseProgress

Ecovadis yearly
Science -based targets(planned for 2023)

Set Targets
Targets for 2025, 2030
and 2050

Why are we accelerating our ESG journey?
At DFE Pharma, we recognize our responsibility in ensuring present needs are met without compromising
the ability of future generations to meet their needs.

4

At DFE Pharma, we aspire to…
…do our part towards
a healthier world:
People and Planet…maximize customer
value through ESG
collaboration.

…be a reliable supplierand reputable
employer.

…be the trendsetterin excipient ESG.

How do we measure progress?
We measure our progress using external standards by Ecovadis and self-disclosure. Ecovadis is theworld’s largest and most trusted provider of business sustainability ratings.
Read more here: https://ecovadis.com/

Our Focus
Governance

Environment
Energy & Emisions
Water
Waste

SocialCompliance
EthicsHealth & Wellbeing
SafetyDiversity, Equity &Inclusion

5

ESG HIGHLIGHTS 2021
We have made good progress in our sustainability goals over the last few years. The formalized ESG
Program enables us to further align our sustainability ambitions with our corporate goals.

GovernanceSocialEnvironment

ESG•
••
•
•

Installed Solar Panels, at our facility in Cuddalore (India)
Participated in 2021 World Clean Up Day
Environment Days (Cuddalore)
65% General waste reduction Kapuni
Electric car chargers installed at two offices•••

Fundraising and community activities organized
Global Health & Wellness Challenge
Gallup Employee Engagement Score••

Earned Ecovadis Bronze Medal
3 out of 5 Plants certified in Environment Management (ISO14001)
Endorsed 5 out 17 Goals•6

OUR ESG AMBITIONS AND ROADMAPOur ambition is to be an ESG leader within our sector. We achieve this through ambitious target
setting and voluntary disclosure of our progress.
OUR AMBITIONSSocial:Environment:•••

100% Carbon-Neutral by 2030 •(Scope 1 and 2)•Zero waste to landfill by 2025
Fully circular packaging by
2030

Governance:

Corporate Sponsorships•Promote full and productive
employment through ourprograms on: Diversity,•Equity & Inclusion; andHealth, Well being & Safety

Ensure 100% of our
stakeholders comply with ourbussiness code of conduct
Maintain our zero toleranceon ethics and complianceviolationsOur 2030 Roadmap

2020

2021

Established ESG baseline for:Greenhouse emissions | Energy efficiency | Water | Waste | Compliance | Ethics| Heath & safety | Social Responsibility
2030 tragets set and internally reported:• Life-cycle assessment for one product group• Executed a company-wide Health Challenge• ESG Core Team installed

2022

Finalize:• ESG Projects Roadmap• Endorse ESG tragets (externally)• All production locations ISO14001 certified• Publish internal ESG report• Assess packaging sustainability

2023

Execute:• Publish public ESG report• Public disclosure of ESG progress• Life-cycle assessment for all product groups• Collaborative projects with suppliers on ESG

2025

Achieve:• Zero waste to landfill• Packaging reusablility and/or recyclability• Minimum 40% reduction or offsetting of green house gases• 30% reduction of freshwater

2030

Reach Targets:• 100% Carbon-neutrality• 50% reduction of greenhouse gases• 50% reduction of freshwater• Fully circular packaging(where possible)

7

SOCIAL

Total greenhouse gas in metric tons

Employee Engagement(scopes 1 and 2)

Gallup Engagement Survey Score

12000
10000
8000
6000
4000
2000

5.00
4.003.00
2.00
1.00
011,702

11,952

Gallup Score

GHG in tons

ENVIRONMENT

2020

Year

2021

3.80

3.85

2020

2021

Year

Total recordable frequency rate(TRFR)

Carbon intensity
0.60
0.50
0.40
0.30
0.20
0.10
0

0.55

0.56

0.32

0.4

0.30

0.3
TRFR

Carbon Intensity(greenhouse emission / volume produced)

2020

0.1

2021

Year

0.2

Energy efficiency index

2020

Year

2021

Days recordables free

(Energy consumed / Volume produced)
3254

8.00
7.00
6.00
5.00
4.00
3.00
2.00
1.00

7.55

7.56

2020

2021

Year

Fresh water
Fresh water in cubic metres

Greenhouse Gases (metric tons)
2,00,000

Foxhol605

Kapuni

1088

Nijmegen672

NörtenHardenberg

340

1,91,667
1,60,317

Sales Office3140(Combined)

1,50,000
1,00,000
50,000444

Cuddalore

Location

Energy Efficiency Index

Borculo

02020

Year

1000

2000

3000

4000

2021

8

GLOSSARY
Based on Global Reporting Initiative (GRI) definitions
Carbon Dioxide (CO2) Equivalent
Measure used to compare the emission from various types of greenhouse gas (GHG) based on their global
warming potential (GWP). (GRI-305)
Carbon footprint
Describes the balance of greenhouse gas emissions along the entire life cycle of a product within a defined
application and in relation to a defined unit of use.
Carbon Intensity
Refers to carbon emissions as a set in relation to another factor.
Climate Neutral
is whereby the amount of greenhouse gases emitted is equal to the amount of greenhouse gases offset.
Global Warming Potential
GWP is the value describing the radiative forcing impact of one unit of a given GHG relative to one unit ofCO2 over a given period of time. (GRI-305)
Greenhouse gas (GHG)gas that contributes to the greenhouse effect by absorbing infrared radiation. (GRI-305)
GRI
Stands for Global Reporting Initiative, read more here: https://www.globalreporting.org/
Renewable energy source
Energy source that is capable of being replenished in a short-time through ecological cycles or agriculturalprocesses. Renewable energy sources can include geothermal, wind, solar, hydro and biomass.
SBTI
stands for Science-Based Target Initiative, read more here: https://sciencebasedtargets.org/
Scope 1 (direct) GHG emissions
GHG emissions from sources that are owned or controlled by an organization. (GRI-305)
Scope 2 (indirect) GHG emissions
GHG emissions that result from the generation of purchases or acquired electricity, heating, cooling andsteam consumed by an organization. (GRI-305)
Scope 3 (other indirect) GHG emissions
Indirect GHG emissions not included in Scope 2 (indirect) GHG emissions that occur outside of the organization, including upstream and downstream emissions.
Sustainable Development Goals
17 Sustainable Development Goals were developed by the United Nations, read more here: https://sdgs.
un.org/goals
Total Recordables Frequency Rate (TRFR)
Stands for Total Recordables Frequency Rate and is calculated as the total number of recordables multiplied by 200’000, divided by the total number of hours worked in a year.

9MOVING
TO A
HEALTHIERWORLD