2019 Corporate
Responsibility
ReportSee BrilliantlyOur Story

About This Report

Benefiting Customers& Patients

Caring for Our
Environment

Winning in the
Workplace

Working With Integrity

ESG
Performance Data

Content Indices2

Contents
A Message From Our CEO

3

Winning in the Workplace

26

Talent Attraction & Retention

27

Our Story

4

Diversity & Inclusion (D&I)

29

Company Overview

5

Health & Safety

31

About This Report

8

Working With Integrity

34

Business Ethics

35

Responsible Procurement &Supply Chain

37

Cybersecurity & Data Privacy

39

ESG Performance Data

41

Content Indices46

SASB Index

47

GRI Index

49

Company Topic-Specific
Disclosures

52

Glossary

53

Legal Disclaimers

54

Benefiting Customers& Patients

9

Medical Innovation

10

Product Quality & Patient Safety

13

Access, Affordability & Pricing

15

Philanthropy

17

Caring for Our
Environment

20

Environmental Sustainability

21

Sustainable Products & Services

22

Reducing Our Environmental
Footprint24

Our Story

About This Report

Benefiting Customers& Patients

Caring for Our
Environment

Winning in the
Workplace

Working With Integrity

ESG
Performance Data

Content Indices3

A Message From Our CEO
It is my pleasure to present our first Corporate Responsibility
Report as a new public company. We’ve been actively
engaged in environmental, social, and governance initiatives(ESG) over our 70+ years in ophthalmology and optometry,
and we are pleased to share with you our perspective on
corporate citizenship in this inaugural report.

Our commitment
to corporate
responsibility isreflected across theorganization fromindividual associates
at every site to theBoard of Directors.

Our mission of helping people See Brilliantly is rooted
in enabling all of our stakeholders to live life to the fullest,
and we take our stewardship role seriously. This year welaunched a breakthrough intraocular lens (IOL) called
PANOPTIX that enables more patients to become spectaclefree after cataract surgery. Our PRECISION1 contact lensprovides consumers with the benefits of a daily SiHy lens,enabling them to enjoy the freedom of long lasting comfort.
Our products are subject to some of the highest standards
in safety and quality. We are mindful of our obligation touse resources responsibly, and we aspire to improve oursustainability. We compete for talent in 74 countries andchallenge ourselves to create a healthy workplace, which ourfamily of more than 20,000 associates can be proud to callhome.
Our commitment is reflected across the organization. In
2020, we created a separate Governance and Nomination
Committee of the Board of Directors to oversee our initiatives
in governance, environmental stewardship, sustainability, andcorporate social responsibility. We also established an ESG
Executive Steering Committee composed of leaders in R&D,
manufacturing, supply chain, compliance, investor relations,and commercial disciplines.
To provide relevant disclosures to our stakeholders, we
initiated a comprehensive materiality assessment alignedwith the Global Reporting Initiative framework. The resultsof that four-month study helped guide the preparation ofthis report. We have focused our disclosure on a discussionof Alcon’s Corporate Responsibility framework and four
categories: Benefiting Customers & Patients; Caring for Our

Environment; Winning in the Workplace; and Working with
Integrity. We recognize that the road to corporate citizenshiprequires significant reflection and organizational alignment,
and it is a journey, not a point in time. While some of our ESG
initiatives are more developed, others are still in the earlystages. Over the next couple of years, we will gather data andbenchmark performance to further inform and evolve ourunderstanding of these areas.
Our passion for good citizenship is demonstrated throughour associate and philanthropic initiatives, and our
response to COVID-19 exemplifies this commitment. As
the public health crisis grew in scale, we acted decisively
to protect our associates with new safety protocols, while
our teams mobilized the manufacture and donation of
personal protective equipment (PPE) and hand sanitizer tofrontline workers.
Each year, the Alcon Foundation supports programs that
sit at the intersection of our purpose and communities inneed. We support organizations and efforts that focus on
improving eye sight and on providing eye care services tounderserved citizens in communities around the world. Good
vision is essential to quality of life, and we will continue tolend our expertise to increasing access to eye care.
These experiences attest to the spirit of our new Alcon. I lookforward to continuing this journey with you, and I commit tosharing our progress along the way.
Best,

David Endicott
Chief Executive Officer
Alcon Inc.

Our Story

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Caring for Our
Environment

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ESG
Performance Data

Content Indices

Our Story
Alcon is one of the leading eye
care companies in the world,
dedicated to helping people
see brilliantly in more than 140
countries.

4Our Story

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Benefiting Customers& Patients

Caring for Our
Environment

Winning in the
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Working With Integrity

ESG
Performance Data

Content Indices5

Alcon serves a wide range of customers, including ophthalmologists,
optometrists, and other healthcare practitioners, patients, consumers, retailers,
distributors, and medical institutions.
Headquartered in Geneva and domiciled in Fribourg, Switzerland, Alcon
operates in more than 70 countries and employs more than 20,000 associates
representing 90 nationalities. Our largest concentration of associates work in
the United States, followed by Germany and Indonesia. We believe our marketleading position and global footprint allow us to benefit from economies of scale,maximize the commercial potential of our product pipeline, grow the market,
and expand into new product categories.

20,000+ associates, 47% female
14 first-in-market launches in 2019, including the first
trifocal IOL in the US

Company Overview
With 2019 net sales of $7.4 billion, we serve a global market
valued at $25 billion, including complementary businesses inSurgical and Vision Care.
•Our Surgical business provides implantable IOLs, consumables,
equipment, services, and procedural drops used in cataract, retinal, andrefractive surgeries.

•

Our Vision Care business covers a broad range of daily disposable, reusable,
and color-enhancing contact lenses and lens care products, as well as ocular
health products to treat dry eye and allergies.
For more information about our products, please visit Alcon.com

6 million patients served by Alcon’s philanthropy programsfrom 2009 to 2019
4,000+ surgeons trained in emerging markets under
Alcon’s Phaco Development Program
40 years of training eye care professionals in underserved
communities with Orbis
12.8% reduction of water usage intensity between
2015-201925.1% reduction of energy usage intensity between
2015-2019

Our Story

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Caring for Our
Environment

Winning in the
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Working With Integrity

ESG
Performance Data

Content Indices

Brief History of Alcon
The Alcon Blueprint is our guideRobert Alexander and William Conner founded Alcon in 1945. The pair
opened a small pharmacy in Fort Worth, Texas, under the “Alcon” name (thefirst syllables of their respective last names). Alcon Laboratories, Inc. began
manufacturing specialty pharmaceutical products to address ocular healthin 1947. In subsequent years, Alcon opened an office in Canada, formed its
surgical division, and began operating internationally. In 1977, a Swiss subsidiaryof Nestlé S.A. acquired Alcon, which operated as a wholly owned subsidiary of
Nestlé until 2002. In 2001, the entity name officially changed to Alcon Inc. and, inMarch 2002, Nestlé completed an initial public offering of approximately 25% of
Alcon’s outstanding shares. Between 2008 and 2011, Novartis AG acquired all of
the outstanding shares of Alcon, creating the Alcon Division of Novartis.
Novartis shareholders approved the spin-off of Alcon in February 2019, and thetransaction was completed in April 2019, whereby Alcon became a standalone,
independent company. Alcon currently trades on both the SIX Swiss Stock
Exchange and the New York Stock Exchange as ALC.

What We Do

How We Excel

OUR PURPOSEOUR FOUNDATIONAL PRINCIPLESWe help people see brilliantly

 e pursue and driveW
innovation
 e care for and inspireW
our people

The Way We WorkOUR VALUES & BEHAVIORSPERFORMANCEWe deliver
results

Alcon Blueprint
People are at the center of everything we do. Alcon recognizes that an engaged,
valued workforce drives our success. Our values and behaviors guide ouractions and daily business decisions, and provide the foundation for ourcompany culture.
The Alcon Blueprint, first introduced in 2017 and updated in 2019, keeps us
focused on the right path as we create shared value for our stakeholders.
Our three foundational principles define how we excel in our industry anddifferentiate ourselves in the marketplace.
For a brief video on Alcon, please visit We are Alcon e care for and delight ourWcustomers

QUALITY
We deliver ourbest in all we do

COLLABORATION
We succeed
together
PEOPLEWe unleash thefull potential of
our people

INTEGRITY
We do theright things in
the right way

COURAGEWe take astand andspeak upINNOVATION
We create,
enhance, andtransform

6Our Story

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Environment

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ESG
Performance Data

Content Indices7

Our purpose is rooted in enabling
people to live life to the fullest, andwe take our stewardship role seriously.
Our values and behaviors guide ourdecisions and provide a blueprint forour culture.

Geneva, Switzerland

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Performance Data

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8

About This Report

Defining Report Content

Sustainability Governance

Alcon is aligning our disclosures in this report to the Sustainability AccountingStandards Board (SASB) framework, which overlaps with many of our highest priority
topics. The GRI framework also informed our reporting strategy and content. This
report provides insights into our governance and management practices (including
policies, responsibilities, processes, and initiatives), details the results of our efforts,and highlights our success stories in our highest priority areas. We are committed totransparency when disclosing risks, opportunities, and positive and negative impacts.

Reflecting Alcon’s commitment to corporate responsibility as a newly
independent company, we created an ESG Executive Steering Committee
to guide our decision making. Members of this committee include Alcon’s
SVP, General Counsel and Corporate Secretary; SVP, Investor Relations andCommunications; SVP, Head Global Manufacturing and Technical Operations;and President, Global Business and Innovation (GB&I). The ESG Executive
Steering Committee is responsible for identifying and managing Alcon’s
environmental and social impacts and for overseeing the development of
our Corporate Responsibility Report. As part of the Alcon Board of Directors
oversight, the Governance and Nomination Committee of the Board of Directors
oversees Alcon’s sustainability initiatives as part of its charter.

Materiality
In 2019, Alcon worked with a global sustainability consultancy to conduct amateriality assessment following the Global Reporting Initiative (GRI) process ofidentification, prioritization, and validation. As part of this process, we conducteda series of interviews with internal leaders and external stakeholders, including
associates, shareholders, and customers, and coupled those insights withindustry research and our evaluation of Alcon’s strategic priorities. Using evidence
gathered from these sources, we mapped the relative priority of a wide varietyof environmental, social, and economic topics. For the purposes of this report,
we use GRI’s definition of “material” topics to reflect Alcon’s significant economic,
environmental, and social impacts or areas that substantively influence theassessments and decisions of stakeholders. In addition to reporting on ourmaterial topics, which are indicated with an asterisk in the chart to the right, we
also cover other topics in-depth in the pages to follow.

*

Benefiting Customers& Patients

Caring for Our
Environment•

Medical Innovation*••

Product Quality &Patient Safety*

Sustainable Products& Services*••

Access, Affordability& Pricing*

Reducing Our
Environmental Footprint•

Philanthropy

Winning in the
Workplace

Working With
Integrity•

Talent Attraction &Retention*•

Business Ethics*•

Diversity & Inclusion*••

Health & Safety

Responsible
Procurement & Supply
Chain

•

Cybersecurity & Data
Privacy

Material topics

Unless otherwise noted, all data refers to 2019.

Our Story

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Environment

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ESG
Performance Data

Content Indices9

Benefiting Customers& Patients
Our innovation is underpinned by ourcommitment to patient safety, productquality, and increasing access to thelife-changing benefits of eye care.

Our Story

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Environment

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ESG
Performance Data

Content Indices10

Medical Innovation

Innovation Process

Innovation is a foundational principle of our Alcon Blueprint. Our efforts aretargeted at addressing many unmet medical and consumer needs, including
improving the overall quality of eye care, serving an aging population withgrowing eye care needs, and increasing access to eye care in emerging markets.

We manage our innovation pipeline with a stage gate model that aligns global
standards required in product development and potential impacts on ourcommercial programs. This process reduces the technical, clinical, regulatory,
and market risks of a new idea while increasing its odds for commercial success.

Alcon has made one of the largest commitments to research and development(R&D) in the eye care industry, with more than half of one billion dollars ofinvestments in 2019. Currently, our R&D organization employs more than
1,400 associates, including physicians, doctors of optometry, and PhDs. We areagnostic in our approach to innovation. Our market leading position gives us
access to a wide range of potential R&D projects, and it makes Alcon an attractive
collaborator for industry partnerships and start-up initiatives.
Our R&D efforts in our Surgical franchise focus on several key areas: expanding
IOL capabilities to improve surgical and refractive outcomes; developing
equipment and instrumentation for cataract, vitreoretinal, refractive, andglaucoma surgeries; and developing new platforms for diagnostics andvisualization. Within Vision Care, we are focused on developing new contactlenses, new manufacturing technology, and novel technologies that safely
provide relief from symptoms of dry eye and ocular allergies.

Our Results
In 2019, Alcon received 58 product approvals in our major global markets andintroduced 14 first-to-market launches. We also filed more than 100 new patentapplications to protect Alcon’s assets and investments.
We are pleased to report our performance using accounting metrics from theSustainability Accounting Standards Board. For more information, please see
ESG Performance Data.

For more information, please visit Alcon’s Innovation site andAlcon’s History of Innovation

58 productapprovals inmajor markets

14

first-to-market
launches100+

new patentapplications

Governance
Project selection, prioritization, and governance are critical components to managing
our pipeline and optimizing our investments. The governance structure is designed
to accelerate innovation while balancing factors such as customer and patient needs,
growth potential, investment requirements, technical and regulatory risk, return on
investment, and capital requirements. We use a risk-based approach to manage
innovation across our businesses. This approach helps us remain agile as we
deploy internal resources. Projects that are low in risk or complexity operate
within structured stage gates, while projects of high risk, complexity, or strategic
importance operate within our traditional stage gate process and receive highlevels of technical oversight and management attention.

Innovation Committee of the Board of Directors
Purpose: Reviews and approves product development and businessdevelopment and licensing (BD&L) plans
Members: Innovation Committee Chairman, three Board Members, with the CEO
and President, GB&I as invited guests
Led by: Innovation Committee Chair
Functions: Reviews strategic and operational innovation plans, develops key
performance indicators (KPIs) used to set Long-Term Incentive targets, monitors
Tier 1 programs and KPIs, approves business development deal structures, andfinalizes Board recommendations

Winning in the
Workplace

Purpose: Approves and monitors the effectiveness of Alcon’s organic andinorganic product development plans
Members: CEO, Chief Financial Officer, Regional Presidents, President, GB&I,
Chief Transformation Officer, and SVP, Head Corporate Development Strategy,
BD&L, and M&A
Led by: CEO
Functions: Approves strategic and operational plans, drives commercial
execution, coordinates intra-franchise tradeoffs, assesses Tier 1 programs,
monitors KPIs, approves business development deal structures, and finalizes
Board recommendations

ESG
Performance Data

Content Indices11

Global Franchise Team (GFT)
Purpose: Oversees Alcon’s organic and inorganic product development, launchsequencing, resource deployment, and BD&L recommendations
Members: Senior leaders from R&D, Manufacturing and Technical Operations,
Quality, Regulatory Affairs, Market Access, Strategy, Finance and Supply Chain
Led by: President of the Surgical or Vision Care franchise, respectively
Functions: Performs the strategic assessment of the commercial viability ofinnovative new products and services, drives portfolio recommendations,manages and guides the stage gate process, and prepares for launch readinessof all programs

Low

Executive Committee of Alcon (ECA)

Working With Integrity

Capital intensity

Caring for Our
EnvironmentHigh

Benefiting Customers& Patients

Risk

About This Report

Board of Directors
Innovation Committee
ECA
GFT

Low

Our Story

Complexity

High

Tier 1: High risk, high technical complexity or high capital intensity;
projects approved by the ECA and governed by the Board of Directors
under the guidance of the Innovation Committee and management
Tier 2: Moderate risk, moderate technical complexity or capitalintensity; projects operate within our stage gate process and aregoverned by the ECA
Tier 3: Low risk, low technical complexity, low capital intensity; projects
executed with stage gates and have moderate governance/oversight by
the GFT
For more information about our corporate governance, Board andleadership team, please visit Alcon’s Investor Relations siteOur Story

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Environment

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12

HIGHLIGHT STORIESPolymer Chemistry in Vision Care

ACTIVE SENTRY

Alcon’s Vision Care business has built a reputation for being the leader ininnovative polymer chemistry for contact lenses. This competency has led tomeaningful innovations that improve the handling, use, and comfort of contactlenses. DAILIES TOTAL1 is the only lens with true water gradient technology that
contains 100% water at the surface of the lens. This feature enables a level ofcomfort and visual acuity that feels like nothing at all is on the eye. This uniquelens structure increases water content, so all that touches the patient’s eye isa cushion of moisture. In addition, Alcon has created SMARTEARS technology tointuitively release natural ingredients that stabilize the tear film to prevent tearevaporation.

The management of fluids during a cataract procedure is essential to a safeand effective removal of the cataract lens. Through ultrasonic technology, adense cataract can be emulsified. During this process, a significant amount ofheat is generated, and saline fluids are used to cool, flush, and stabilize theclosed anterior chamber of the eye. In this closed, soft tissue environment,
fluid management becomes the essential factor to the success of thesurgical procedure.

Building off of this scientific base, in 2019 Alcon launched a mass market SiHy
daily disposable contact lens called PRECISION1. Founded on the same principles
of polymer chemistry as DAILIES TOTAL1, PRECISION1 meets the needs of a young,
active population that expects their lenses to keep up with their lifestyle.
Our expertise in polymer chemistry has paved the way for the most innovative
contact lens technology in Alcon’s history. This technology provides thefoundation to deliver unique product solutions that meet a number of known
clinical and patient needs.

WATER GRADIENT TECHNOLOGY
Increases water content near the lens surface,
so all that touches the patient’s eye is a cushionof moisture
SMARTEARS TECHNOLOGY
Intuitively releases natural ingredients thatstabilize the tear film to prevent tear evaporation

Over Alcon’s rich history in cataract surgery, our engineers have mastered
the balance between inflow and outflow of this closed system. The recently
introduced ACTIVE SENTRY handpiece, an enhancement to the CENTURION
Vision System, integrates a miniature pressure sensor within the handpiece.
This sensor continuously monitors pressure at the surgery site, allowing foralmost instantaneous detection of vacuum breaks or fluid surges. Sophisticatedsoftware algorithms enable the system to rapidly employ countermeasures tominimize resulting movement within the eye. This innovative, first-to-market
technology provides an added measure of confidence and consistency for thesurgeon and safety for the patient.

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Product Quality & Patient Safety
Product quality and patient safety are vitally important for Alcon and the medical
device industry at-large. Our customers and patients must always feel safe
and secure when using our products. Compliance with local, state, federal, andinternational regulations is critical to Alcon’s viability, and limiting the incidenceof product quality and safety issues puts us in a better position to help people
see brilliantly.

Governance

Global Medical Safety

Quality Compliance

Quality Management System (QMS) Group

Alcon’s Global Medical Safety group, led by our
Chief Medical Officer, oversees product lifecyclefrom development through post-production. The
group conducts signal detection on adverse events,
prepares benefit-risk assessments, and supports
risk management activities for patient safety. The
group communicates trends across functions, andcross-functional boards review the trends to makesafety and management decisions. As needed, we
escalate issues to our Quality Compliance group to
conduct a field action assessment to determine if
the issue requires market action.

Alcon’s Quality Compliance group audits ourinternal processes and suppliers for compliancewith approved processes and procedures. Thisapproach has enabled Alcon to build good standing
with health and regulatory bodies for consistently
meeting and exceeding applicable regulations.

Our QMS group is responsible for establishing andmaintaining a robust and compliant quality control
system across the entire company. QMS regularly
monitors industry trends, as well as global and local
regulation changes, and adjusts our processes andprocedures to adhere to current standards andbest practices.

To uphold regional quality in the countries where
we operate, Alcon welcomes all feedback, including
concerns from doctors and consumers. Our
Vigilance Group determines whether an event isreportable and submits these events to regulatory
authorities based on the rules of each country.

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Benefiting Customers& Patients

Caring for Our
Environment

Quality Management System (QMS)
Our QMS covers all Alcon R&D centers, affiliates, and manufacturing sites. It is
certified to ISO 9001 and ISO 13485 Standards, the Medical Device Single Audit
Program (covering Australia, Canada, Japan, Brazil, and the US), and it will soon
be certified to the new EU Medical Device Regulations (EUMDR).
Our QMS is composed of processes and procedures designed using industryrecognized risk management standards to mitigate risks and reliably produce
high quality products. Products are designed and manufactured using therequirements prescribed in our QMS. Once marketed, we conduct periodic risk
reviews with our R&D, Global Medical Safety, and Quality teams to monitor the
performance of our products, processes, and systems. We reference external
standards to keep our QMS consistent with state-of-the-art technology.
Adverse event reporting is one example of how we monitor the health of our
products and processes. We train every associate on quality reporting througha robust curriculum that includes adverse event and complaint reporting. Our
post market surveillance teams receive training on regulatory requirements,
complaint and adverse event tracking, as well as complaint intake procedures
to appropriately assess whether to report an event to health authorities. We
have controls to manage and monitor our suppliers, and as part of our quality
agreements with our suppliers, we include vigilance clauses and provide training
on how to report quality complaints and adverse events to Alcon.

Addressing Customer Complaints•

Complaint submitted by customer or associate•Complaint logged in management system•

Vigilance assessment for complaint reportability to health authorities•

Complaint metrics tracked in Alcon Quality Analytics (AQA) tool•

Data trends reviewed at relevant manufacturing site•

Specific actions taken to address complaint trends•

Trends consolidated at franchise level and reviewed by management

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HIGHLIGHT STORY

Quality Evolution at Alcon
Continuous improvement is critical to a robust quality management system.
Alcon has coined the term Quality Evolution to highlight the importance of having
a culture of quality — starting with why we are performing quality activities,
knowing that what we do creates safe, effective, and reliable products, andimproving upon how we deliver quality.
Quality Evolution is about thoughtful simplification. Through continuous
improvement in quality, we increase our focus on activities that create the mostvalue and reduce the need for reactive measures. As we move forward on our
Quality Evolution journey, our initiatives allow us to focus on providing highquality products in a compliant manner.
•

Global Subject Matter Experts Infrastructure: A community of cross-functional
expertise that owns processes associated with various quality systems elements.
The community leverages its relevant experience and continuous improvement
techniques to keep the procedures concise and current.

•

Alcon Quality Analytics: Our global metrics dashboard automates our datacollection under a single system.

•

Quality Health Summaries (QHS): Once potential trends in quality issues
are identified, we address them aggressively until the trends start to recoverin a positive direction. By raising their visibility, we focus on solving the realissues and make sure we address each one correctly the first time.

Our Results
Our Global sites continue to demonstrate a positive compliance posture throughinspections from health authorities and notified bodies, demonstrating a solid
quality management system. In the last five years, we’ve had neither any FDAinitiated Class 1 recalls nor serious findings from regulatory authorities.
For more information, please see ESG Performance Data.

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15

Access, Affordability & Pricing

GovernanceValue lies at the center of access and affordability. Our technologies should
demonstrate evidence-based value for our patients, customers, and other
healthcare decision-makers (HDMs), such as government payors and hospitalsystems, so they can justify and fund coverage.

Our Market Access Team, reporting to the franchise leaders on the ECA, manages
Alcon’s access, affordability, and pricing efforts. They collaborate with several
internal functions — including R&D and Global Commercial and FranchiseMarketing — to clearly communicate evidence-based value when we launch
new technologies. The Market Access Team also directs our Health Economics& Outcomes Research team in how we communicate our value proposition
with HDMs.

Value Framework
Our Value Framework covers multiple factors we consider when pricing our
products. We incorporate the following three factors into our strategy, so
our products continue to support future R&D and innovation, allowing us tocontinually address unmet needs globally.
Value to clinicians and other HDMs is the foundation of our Value
Framework. Our ability to provide strong evidence of patient outcomesenables our ability to expand insurance coverage for our products andservices. Evidence of value includes the clinical outcomes, economic factors,
and strategic differentiation of our technologies. Where possible, we translateclinical outcomes to economic value, patient quality of life, and/or improvements
in productivity.
Reimbursement mechanisms and funding flow are the second factor in our
Value Framework. We consider available public and private payment mechanisms
to make our products affordable to customers. Where reimbursement does
not yet exist, we provide strong evidence of our product value to third-party
payors to establish reimbursement programs that make our technologies
affordable and accessible.
Market landscape and global environment are the third factor in our Value
Framework. We consider each country’s stage of market development, healthcare
infrastructure, population’s ability and/or willingness to pay, alternatives available tocustomers, and even the geopolitical environment. We also evaluate how payment andaccess in some markets can affect others around the world.

Increasing Access
Patient access to quality eyecare is core to our business. Alcon has invested significant
time and resources to innovate new technologies, pursue reimbursement (public andor private insurance) pathways, and upskill clinicians around the world to improve
both outcomes and access to the highest standards. Our Government Affairs and
Health Policy country-level leads engage with governmental agencies to create andmaintain health policies that support innovation and patient access. We provide Alcon
Experience Center tours to HDMs, helping to deepen their clinical understanding
and appreciation for our innovation.

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Benefiting Customers& Patients

Caring for Our
Environment

Delivering Affordable, Quality Eye CareIn addition to access, Alcon strives to provide affordable eye care for customers
and patients around the world. We are currently developing a wide range of eye
care technologies, such as IOLs, to meet both clinical and affordability needsof a broad population. In certain developing markets, we also provide a lessexpensive alternative phacoemulsification machine to improve access to ourtechnology while providing quality outcomes. Through both recognizing global
population health dynamics and applying thoughtful innovation, Alcon can servea broader number of patients in countries where costs may have otherwise
inhibited access to quality eye care.

Disclosure of Pricing Information
HC-MS-240a.2

Alcon works to make our products affordable to patients and health systems
by assessing local cost and access barriers, as well as by evaluating traditional
and innovative reimbursement models. As a global market leader in eye care,
Alcon works with HDMs to improve cost, access, and quality. The value we create
determines pricing, and we take into account other factors, including geography,
customer needs, volume, product cost, and investments. In various countries, we
negotiate pricing contracts for our products through competitive tenders andrequest for proposals (RFPs) which keep the pricing of our products and services
within the customer’s reach and ability to pay.

Our Results
Alcon tracks our product price performance in the markets we serve, as well as ourincremental reimbursement success rate. In some markets, like Brazil and the US,
the weighted average price of our products increased as we launched new productinnovation, while our prices decreased in other markets such as India and Spain.
For more information, please see ESG Performance Data.

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16

HIGHLIGHT STORY

Bridging the Access Gap
Phacoemulsification (phaco) is the preferred standard of care in cataract surgery.
However, in low- to middle-income countries, access to this technology isaffected by the lack of training and limited purchasing power.
To increase access to phaco, Alcon provides skills development through our
Phaco Development (PD) Program, where a dedicated team of 200+ phaco
development specialists supports surgeon training in Russia, China, India,
Vietnam, Bangladesh, Indonesia, and Nepal. Since the inception of the PD
program, we enrolled more than 4,000 doctors in our ongoing core andadvanced PD programs. These doctors have performed approximately fivemillion phaco procedures over the lifetime of the program.
The program has now expanded to build capabilities in additional critical
ophthalmic disease areas, including vitreoretinal surgery, glaucoma, astigmatism,
and presbyopia management. The program’s goal is to build a foundation fora higher standard of care in ophthalmology, making eye care accessible tomore people.
In addition to skills training, Alcon also develops products to address the
specific needs of certain developing markets. In 2019, Alcon introduced the
LEGION system to help fill the gap in access to phacoemulsification surgery.
This affordable system brings some of the advanced features of the CENTURION
system, combined with greater serviceability, durability, and portability
to developing markets. LEGION’s breakthrough design rivals the surgical
performance of premium machines at a lower per use cost, and it has opened
the door to new cataract markets around the world. First launched in India,
LEGION has received significant enthusiasm among surgeons.
By recognizing global population health dynamics and applying thoughtful
innovation, Alcon can serve a broader range of patients in countries where costs
inhibit access to quality eye care.

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The World Health Organization estimates one billion people have preventable
and/or unaddressed vision impairment. To help meet this enormous need,
we partner with organizations around the world to provide products andservices, train doctors, and increase eye health awareness. We provide many
opportunities to support patient care and eye care provider education throughmedical missions, capacity building, and equipment donation.
The primary focus of Alcon’s philanthropy is capacity building. We enhance
the skills of optometrists, ophthalmologists, and medical professionals aroundthe world to provide treatments and perform eye surgeries. Alcon directs ourcharitable contributions to eligible non-profit organizations through two separate
entities: the Alcon Foundation, which provides monetary donations, and Alcon
Cares, which provides product and equipment donations for medical missions
and capacity building around the world.

Alcon Foundation

Philanthropy
Alcon’s products have significant positive impacts on our customers and patients,and our philanthropic efforts connect to the UN Sustainable Development Goalof “No Poverty”. Improving or restoring a patient’s sight can provide a hugeeconomic benefit, not only to the patient who can return to the workforce,but also to caregivers and the broader community. Vision impairment is not
merely an inconvenience or a threat to employment and job productivity, but
eye problems can also imperil our health and safety, increasing the risk forautomobile accidents, workplace injuries, and falls among older adults.

More than three quarters of the Alcon Foundation budget supports eye careprograms internationally, with the remaining funds assisting local communities.
We support optometry programs that provide vision exams, glasses, and othertreatments through global non-governmental organizations (NGOs) such as
VisionSpring, as well as community partners like Community Eye Clinic in Fort
Worth, Texas. We also collaborate with international organizations such as Orbis,
Mercy Ships, Helen Keller International, and SightLife to eliminate preventableblindness in underserved communities around the world. With their emphasison training local eye care teams, these organizations are helping to improve
both the volume and quality of eye care in low- and middle-income countries.
Practitioners who receive hands-on training with volunteer surgeons, nurses, andtechnicians go on to provide essential ophthalmic care, transforming lives andcommunities in countries with high rates of blindness and vision impairment.

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The impact of these programs is perhaps most remarkable when doctors who
were once trainees become trainers. Dr. Patricia Eyoup Sen completed a threemonth Mercy Ships Medical Capacity Building Program aboard the Africa Mercy
during its 2018 field service program in Cameroon. After participating in morethan 300 surgeries, 150 of which she led, Dr. Sen went on to re-open an eye clinic
in Garoua, Cameroon that had been inoperative for more than 20 years. A year
after completing her mentorship aboard the Africa Mercy, Dr. Sen returned to theship as a volunteer surgeon during its Guinea field service, where she performed
85 cataract surgeries and helped mentor the current class of trainees.
For marginalized populations, the Alcon Foundation also supports community
organizations and programs that provide health and social services. Examples
include the Boys and Girls Club, shelters for victims of domestic violence, literacy
programs, and organizations that address hunger and homelessness.

Alcon Cares
Through Alcon Cares, we donate products and lend portable phacoemulsification
units to organizations that organize and sponsor medical missions. During those
medical missions, volunteers treat patients and train local Eye Care Professionals(ECPs). Alcon Cares-supported programs serve approximately 400,000 patients
per year. In 2019, Alcon supported more than 500 missions to 69 countries,
where volunteer surgeons performed 38,000 eye surgeries and contributed$63 million in product and equipment donations.
To help address the eye care gap in the US, Alcon Cares partners with volunteer
surgeons to provide free surgery to eligible un-insured and under-insured
patients in the US. Alcon Cares serves approximately 1,200 patient surgeries ayear through this program, with many suffering from advanced cataracts.

COVID-19 Response
Early in the COVID-19 pandemic, Alcon identified three core areas to support
with philanthropic programs: health services, hunger relief, and hygiene. The
Alcon Foundation made monetary donations to organizations providing meals forchildren and seniors, essential supplies to shelters, and public health emergency
relief efforts. Recipients included the International Medical Corps and the World
Health Organization COVID-19 Solidarity Fund. In addition, several of our Alconsites supported their local communities through monetary or product donations.

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Volunteerism

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HIGHLIGHT STORY

Alcon’s 40th Anniversary With Orbis

Through Alcon in Action, a global day of volunteerism, our associates work
toward a common goal of taking action in our communities. We also bring
activities onsite to provide volunteer options for associates who cannot leave
campus. In 2019, 4,000 associates from 40 sites volunteered at 45 community
organizations during our first standalone Alcon in Action day, and many continue
to volunteer at those organizations today.
Alcon also provides opportunities for associates to volunteer their expertise.
For example, our biomedical engineers and technicians participate in Orbis
Flying Eye Hospital programs where they train local practitioners how to use ourequipment. These associates often come back with a new outlook and insight on
how Alcon helps people, providing them a renewed energy and appreciation for
their work and its impact on patients. In 2019, Alcon associates volunteered with
Orbis programs in Myanmar and Ghana.

Orbis, an NGO dedicated to saving sight worldwide by training eye care
professionals in low- and middle-income countries, is a pioneer in the prevention
and treatment of avoidable blindness. Through its Flying Eye Hospital, awardwinning telemedicine platform, Cybersight, and long-term country programs,
Orbis and its volunteers and partners help establish and strengthen sustainable
eye care in communities around the world. For 40 years, Alcon has been donating
ophthalmic equipment, pharmaceuticals, and supplies for Orbis global programs.
Biomedical engineers and technicians from Alcon have also shared their technicalskills and knowledge to help Orbis partners operate and maintain equipment andstrengthen local eye care infrastructure. The Alcon Foundation has sponsoredOrbis training programs in China, Ethiopia, India, Indonesia, Mongolia, Myanmar,
Panama, Peru, and Vietnam.

For more information, please visit Alcon’s Corporate Social
Responsibility site

529 medical missions
69 countries
38,000 eye surgeries

19

4,000

volunteers
during our first“Alcon in
Action” day

Watch a video on Alcon and Orbis’ partnership

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Caring for Our
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We are committed to protecting
our associates and managing ourenvironmental footprint as ourbusiness grows.

Fribourg, Switzerland

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Environmental Sustainability

Sustainability Strategy

Alcon is committed to growing sustainability by managing our environmental
footprint throughout our product life cycle. As we strive toward the utmost safety
and product quality, we seek to develop practical solutions to reduce energy andmaterial use and waste.

The spin-off of Alcon created an opportunity to chart a path towards
environmental sustainability as an independent company.

GovernanceOur core values include protecting the environment and the health and safety of
our associates, neighbors, and others who intersect with our business activities.
Alcon’s corporate-level health, safety, and environment (HSE) department leads ourHSE management activities. This team includes subject matter experts who assist
with setting corporate policies and standards and providing tools and training to
mitigate risk, drive continuous improvement, and maximize efficiency. Manufacturing
sites have dedicated HSE teams, and commercial operation locations have assigned
HSE champions to assist in HSE operations on a continuous basis.

Sustainable
Products &Services

Implement post-use
recycling programs•

Increase ourrenewable energy•

Embed environmental
sustainability into productinnovation process•

Reduce fleet GHG emissions•

Embed environmental
sustainability into capital
investment evaluation process•

Reduce environmental impactof packaging

In building our environmental strategy, we listened to Alcon leaders andassociates, as well as investors and customers, regarding opportunities toadvance our environmental sustainability. Using data gathered from ourassessment, we analyzed our performance and identified opportunities for
improvement across our business lifecycle.
Our environmental strategy aligns with our purpose, core values, and businessstrategy. Through our strategic initiatives — sustainable products and services,energy efficiency and greenhouse gas (GHG) reduction, operational waste
reduction, and water stewardship — we are able to drive progress toward oursustainability vision.
For more information, please visit Alcon’s HSE policy

Operational
Waste Reduction

Energy Efficiency& GHG Reduction

•

21

•

Increase landfill diversion andincrease number of sites withzero waste to landfill

Water
Stewardship•

Improve water use
efficiency and stewardshipat sites with high water use or
stress factors

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Sustainable Products & Services
As part of our corporate citizenship, it is our responsibility to adopt a productstewardship approach throughout ideation, development, commercialization, anddisposal of our products.

Design With the Environment in Mind
Innovation is an integral part of our business, and the environmental impact
of innovation is a major focus area for our company. Safety and quality areparamount in our manufacturing process, and we strive to minimize our
products’ impact on the environment, including single-use products, which are
increasingly being used for convenience and enhanced patient safety. Our R&D
teams consider environmental aspects when initiating new designs, and theyevaluate opportunities to safely reduce product packaging and post-consumer
waste, while delivering breakthrough technology.
Alcon has introduced a new process for evaluating HSE requirements during
the design phase for new products. The process, now an internal standard,allows design project teams to evaluate new products and materials against
HSE compliance and sustainability metrics. This enables us to screen materials
for chemicals of concern, identify opportunities to reduce packaging waste, andimprove safety and operational performance.

Safe Chemical Handling
We care deeply about the safety of our associates, and we take steps
to implement the safe handling of chemical substances throughout our
manufacturing processes. Each site goes through a chemical approval process
to evaluate risk by chemical type, including the effects of exposure on associates,
products, and the environment. We determine measures to protect ourassociates and equipment from each chemical, and we conduct cradle-to-graveassessments for each chemical’s transport, arrival, handling, and disposal. As
with any raw material, we complete an HSE change management process before
introducing the new chemical into our manufacturing process.

Compliance With Chemical Regulations
HC-MS-410a.1

As part of our ongoing commitment to product compliance and sustainability,
we strive to reduce and eliminate the impact of chemicals of concern in our
products. We comply with global chemical regulations including EU Registration,
Evaluation, Authorization, and Restriction of Chemicals (REACH); EU Medical
Device Regulation (EUMDR); California Proposition 65 (Prop 65); and EU
Restriction of Hazardous Substances (RoHS).
We actively monitor changes to applicable product regulations, as well as theirimpact on our industry and products, using a centralized enterprise resource
planning system designed to monitor, record, and communicate changes andupdates in real time. We engage with industry groups, such as the Medical
Technology Europe (MedTech EU) and the European Association of the Contact
Lens and Lens Care Product Manufacturers (EuromContact), to keep abreastof best practices and industry standards. We have implemented processes toevaluate the use of chemicals and parts throughout our product lifecycle, and wework closely with our suppliers to implement upstream compliance.

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Reprocessing Used or Obsolete Equipment
Our program to reprocess used surgical equipment has positive implications
for the environment. Upon receiving returned equipment, our technical service
engineers replace parts and update the existing technology to restore surgicalequipment to Alcon’s operational standards. Reprocessed units are used in
facilities around the world, as backup or primary equipment for commercial
and educational purposes. Our repair centers also reprocess used spare parts.
We use environmentally safe methods to dispose of any parts that cannot be
reprocessed.

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HIGHLIGHT STORYAUTONOME Packaging Volume
Reduction Project
Sustainability was a guiding principle in the design of our next-generation
IOL delivery system. AUTONOME provides the reliable, controlled insertionof the IOL into the capsular bag. This device arrives fully assembled with the
IOL positioned within the lens bay, thus eliminating the need for separate
packaging. The new design reduces the use of single-use plastics in surgicalfacilities and hospitals.

Our Results•

37.5% reduction in packaging surface area compared with oldgeneration, ULTRASERT

HC-MS-410a.2•

4.6g reduction in total product primary packaging weight compared withold generation, ULTRASERT•

16.9% reduction in total landfill waste and 4.9% reduction in landfill andbiohazard waste compared with ULTRASERT•

Eliminating overwrap makes it easier for staff to use the device

For the SASB Product Design and Lifecycle Management accounting metric, Alconis reporting the weight of reprocessed parts and systems. Since this program is not
yet mature, we are enhancing and streamlining our data collection process. Alconbegan actively tracking global reprocessing activity in 2018.
WEIGHT OF REPROCESSED PARTS AND SYSTEMS REDEPLOYED (METRIC TONS)

2016

2017

2018

2019

20.5

38.6

98.4

131.3

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Reducing Our Environmental Footprint
Alcon is dedicated to helping people and protecting our planet by conserving our usage of natural resources, implementing energy efficiency programs, and reducing ouroverall carbon footprint. Each year, we set targets for waste, water, and energy reduction projects, and we monitor results of our ongoing environmental initiatives.
Our manufacturing sites have established environmental management systems, with 17 of 18 manufacturing sites certified to ISO 14001:2015. We strive to minimize ourenvironmental impacts, manage legal compliance, and continuously improve our performance. Our management system tool helps us track completion of our complianceobligations, investigate root causes of non-compliance, and implement corrective and preventive actions.

Our Results
Water Management
Access to good, quality, fresh water is important for our production processes,
and our manufacturing sites account for most of the water usage across theorganization. We continue to focus on maximizing our water efficiency and increasing
reuse of water. For example, our water recycling program in Singapore resulted in anannual savings of approximately 30.5 megalitres. Overall in 2019, we implemented
12 water-saving projects, such as rainwater collection, water infrastructure upgrades,
recycling of processed water, and low-flush restroom renovations. In total, theseprojects created approximately 75 megaliters in water savings.

Energy Usage
Recognizing the need to prioritize climate action, Alcon is committed tocontinually improving our energy efficiency across all of our sites.
In 2019, we completed 23 energy saving projects, including lighting and HVAC
replacements, upgrades to compressed air equipment, and material upgrades
to reduce heat island effects at our facilities. These projects resulted in energy
savings of approximately 19,253 gigajoules. For example, our Houston facility
invested approximately $0.5 million in compressed air improvements and LED
lighting, which resulted in 7,495 GJ of energy savings. Because of our energy
savings activities, our overall energy output has remained relatively flat over thelast five years, despite increased manufacturing output.

TOTAL WATER USAGE INTENSITY(MEGALITERS/MILLION UNITS PRODUCED)
1.09

2015

1.08

2016

0.89

0.89

0.95

2017

2018

2019

ENERGY USAGE INTENSITY (GIGAJOULE/MILLION UNITS PRODUCED)
1,016

947
780

2015

2016

2017

726

761

2018

2019

23 projects

executed saving
19,250 GJs
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Greenhouse Gas Emissions
Using a market-based approach, our direct (Scope 1) and indirect (Scope 2) GHG
emissions, on an absolute basis, were 356,258 metric tons of carbon dioxide
equivalent (tCO2e) in 2019. With the implementation of energy savings projects in
2019, we avoided 3,781 tCO2e greenhouse gases.

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HIGHLIGHT STORY

Circularity in Practice in Our Vision
Care Franchise

TOTAL SCOPE 1 & SCOPE 2 GHG EMISSIONS (tCO2e)*379,027

380,680

2015

2016

341,408

337,204

2017

2018

Our Georgia (US) site introduced a methyl ethyl ketone (MEK) decanting
process to separate and recover excess water from MEK waste. This process,also used at our location in Germany, reduces water content in MEK wastefrom 30-50% to less than 15%, and decreases the MEK waste sent to a thirdparty vendor by approximately 20%. The reuse of these materials reduced
raw material consumption by 200 tons, and has the potential to generate~$1.0 million of savings per year.

356,258

2019With our effort to promote materials recycling, approximately 99% of
hazardous waste, mainly solvents, is recycled and reused in our productionof contact lens products.

Waste Minimization
We are working to reduce waste by reusing resources where possible, increasing
recycling, generating less hazardous waste, and diverting non-hazardous wastefrom landfills.
NON-HAZARDOUS WASTE LANDFILL DIVERSION RATE

83%

84%

2015

2016

91%

94%

94%

2017

2018

2019

For more information, please see ESG Performance Data.
*

Scope 1: total amount of GHG emissions from sources owned orcontrolled by Alcon and its subsidiaries.
Scope 2: total amount of GHG emissions from sources related
to the generation of purchased energy outside the company’s
boundaries.

*

GHG emissions include carbon dioxide (CO2) andhydroflourocarbons (HFCs)

94%

of MTO nonhazardous
waste diverted
from landfill

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Winning in the
WorkplaceWith the successful spin-off
of Alcon, we are re-energizing
our culture and providing
opportunities for growth.

Fort Worth, Texas, USA

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Talent Attraction & Retention
The Alcon Blueprint, which includes our Values & Behaviors, sets the stage
for talent and culture at Alcon. It is the bedrock for how we attract, develop,
and retain top talent. We seek diverse talent who embody our values andcontribute to a culture that enables us to help people see brilliantly. We workwith associates to set challenging performance and career goals, offer training
and development opportunities, and encourage growth through mentoring,
challenging roles and assignments – all while ensuring competitive compensation
and benefits.

Governance
Our SVP, Chief Human Resources Officer, working with the Global Head of
Talent Acquisition and the Global Head of Talent Management and Organization
Development, develops and manages policies and practices that support and advancethe business’ strategic direction. By collaborating with business operations and support
function leaders, we create comprehensive strategic recruiting and retention plans tomeet our human capital needs.

Talent Attraction
Our talent acquisition process encompasses all facets of workforce planning,
employer branding, talent assessment and selection, and onboarding of new
associates. In alignment with our Code of Business Conduct, as well as otherpolicies and guidelines, we apply a fair and consistent process to our recruitment
and retention approach for all associates.
Our strong benefits package also factors into our talent attraction strategy. We
offer competitive benefits for full- and part-time associates, which vary dependingon location. Alcon’s spin-off has allowed us to drive results by more directly
linking performance with employee rewards. We provide short- and long-term
incentives in the form of restricted stock grants to eligible associates.

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As part of building a strong talent pipeline, Alcon supports STEM education within
our communities. Today’s science, technology, engineering, and mathematics(STEM) students can become our future associates, and investing in theirdevelopment is a priority. In 2019, the Fort Worth office hosted a STEM fair that
attracted approximately 100 students from local schools. They visited our Alcon
Experience Center and wet lab, where they spent the day learning from ourscientists and engineers.

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We demonstrate our commitment to recruiting a diverse talent pool byconducting college visits to schools that champion underrepresented groups. We
also engage with different student groups, including Latino student organizations
and the Society of Women Engineers, on activities ranging from resume-building
and Alcon campus tours to participation in classroom instruction.
Moving forward, we will be able to measure global key talent acquisition metrics suchas time-to-fill, cost-per-hire, and the effectiveness of our sourcing channels through a
new human capital management and applicant tracking system.

Talent Retention
Alcon focuses on the care and growth of our associates through learning anddevelopment, performance management, career progression, and associate
engagement. We help our associates achieve their career goals by working withthem to define development options and pathways. We give them the tools to takecharge, as well as learning through mentoring, coaching, training programs, andemployee resource groups (ERGs). In addition, various Alcon functions provide
specialized training and development to help maintain our competitive edge.
In 2019, as part of our culture and associate engagement effort, Alcon
successfully launched an associate survey tool, the Associate Experience
Dashboard (AED). The AED gauges associate sentiment on a variety of topics,
including connection to our purpose, ability to speak up, and empowerment
to make decisions. We encourage managers to share results with their teams
and take steps to improve the associate experience. We also use feedback fromthe survey to improve how we execute organizational change and inform ourtalent strategy.

Focus on Performance
Our performance management process focuses on driving performance with theright behaviors. Goal setting and alignment is a company-wide effort initiated by the
executive leadership team at the beginning of each year to focus all associates on
the company’s priorities. Associates use the goal alignment process to set individual
performance goals and evaluate performance according to individual goals, as well
as Alcon values and behaviors.

Our Results
In 2019, our AED Engagement Index scored higher than our peers,demonstrating associate optimism and engagement towards achieving our
mission. As we navigated significant changes related to our separation process
and transformation program, we conducted three short surveys to measure
sentiment throughout 2019. We were pleased to find consistency and stability
in our associates’ sense of purpose and excitement for the future. In addition,
we measure and manage turnover at the local level, and we have seen steady
improvement over the last several years.
For more information, please see ESG Performance Data.
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Diversity & Inclusion (D&I)
The breadth, depth, and diversity of our collective experiences differentiate
Alcon. We believe we will build an even stronger Alcon by cultivating a morediverse and inclusive culture. Every day we strive to advance the quality of patient
outcomes across an incredibly diverse population of patients, providers, andpayors. By unleashing the full potential of our people, we accelerate innovation,
improve quality, and deliver better patient outcomes.

GovernanceDiversity and Inclusion is co-led by the President, GB&I and the SVP, Chief Human
Resources Officer. The Global Head of D&I collaborates with the organization,
Human Resources, and Alcon’s D&I Counsel to build our D&I programs.
Established in 2014, Alcon’s Global D&I Counsel is composed of a diverse, crossfunctional set of leaders who help set and execute strategy, promote awareness,and evaluate metrics around our D&I efforts.

D&I Ambassadors
The D&I Ambassador program engages Alcon associates all over the globe tocreate an inclusive environment. D&I Ambassadors host educational opportunities,
such as our Cultural Competency, Unconscious Bias and Psychological Safety
programs, as well as activities to celebrate diversity at Alcon. For example,
D&I Ambassadors host an annual Diversity Fair to celebrate the 26 countries
represented by Alcon associates at the Houston site. Furthermore, in 2019, withthe help of the Open Professional Employee Network (OPEN) ERG, Alcon earned
a score of 90/100 in the Human Rights Campaign’s Corporate Equality Index (CEI),
which rates company policies supporting the LGBTQ+ community.

Employee Resource Groups
Our ERGs provide strong development opportunities for our associates. The ERGs
aim to provide programming, mentoring, and professional development while
contributing to Alcon’s business goals. Each ERG has an executive business sponsor.
We have nine ERGs at various Alcon locations, and these groups are now starting to
expand outside of North America.

ERGs

•

Open Professional Employee
Network

Administrative Professionals Network•

Women Innovating Now•

Latin Employees @ Alcon Driving Success•Working Parents•

Military Affinity Group•

Young Professionals•

African Ancestry Cultivating Excellence•

Alcon Chinese Association•

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HIGHLIGHT STORY

Inclusive Design
In the last decade, the number of female ophthalmologists as a percentage
of all surgeons has steadily grown. Historically, product designs haveunconsciously catered to men, resulting in unintentional ergonomic
disadvantages for women. To address that bias, Alcon is changing our
product design approach to be more inclusive of women.
Physical differences in height and hand size, in addition to the potential for
repetitive injury, have influenced the design of our new surgical products.
Through insights provided by our Women Innovating Now (WIN) ERG, we
now consider physical height and hand size in our product design. The first
products to be impacted by this research are our surgical visualization systemand hand-activated forceps.
Within visualization systems, innovations such as the ORA Wavefront
Aberrometry and iOCT attach to the analogue microscope stack, resulting in
an increased height of the microscope’s oculars. In extreme cases, this could
potentially contribute to the rise of repetitive-use injuries to the cervicalspine. With Alcon’s NGENUITY system, a 3D camera replaces the microscope’s
oculars, allowing the surgeon to operate with a heads-up view of an OLED
display, eliminating potential strain and back injury. This design change
eliminates the impact of stack height, resulting in a more ergonomicallysound environment.
Through this research, we also recognized that physical differences in users’
hand sizes required improvements to our hand-activated forceps. As a result,
we have created hand forceps with smaller dimensions in terms of lengthand circumference of the activation mechanism, as well as reduction of therequired hand activation force. These features subsequently enable more
surgeons to effectively and comfortably use our products.

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Training
Our D&I training programs address various dimensions of diversity, including
raising awareness, advanced learning, skill-building, and action. Through these
programs, we raise awareness about diversity and associates’ understanding of
cultural differences, and we build inclusive leadership behaviors. We believe wemake the biggest impact on diversity and inclusion through education and byembedding it into everything we do.

Our Results
We have identified key focus areas for increasing representation of female andethnic diversity at supervisor and management levels, as well as at all levels of thecompany. We recognize the importance of continuing to strengthen our companywide effort to build a more diverse workforce.
GLOBAL FEMALE REPRESENTATION
48%

2018

47%

2019

US ETHNICALLY DIVERSE*

42%

2018

*

GLOBAL FEMALE REPRESENTATION(MANAGERS/SUPERVISORS)

33%

34%

2018

2019

US ETHNICALLY DIVERSE(MANAGERS/SUPERVISORS)*

44%

2019

25%

26%

2018

2019

Includes American Indian/Alaska Native, Asian, Black/African-American, Hispanic/Latino,
Native Hawaiian/Other Pacific Islander, and two or more races.

For more information, please see ESG Performance Data.

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Health & Safety
We truly care about people — our associates, visitors to our campus, and ourneighbors in the communities where we operate and work. Alcon is committed
to fostering a culture of safety and health to help our associates thrive as theymeet the demands of running one of the largest eye care organizations with
operations in 170 countries.

COVID-19 Response
During the COVID-19 pandemic, our crisis management teams spearheaded a
globally coordinated response to protect our associates around the world. All
office-based associates were encouraged to work from home, while our sales
and customer service teams delivered remote account management. New safetymeasures were implemented to protect associates onsite, such as modified
workstation arrangements, scheduling changes to reduce the crossflow of people
between shifts, enhanced cleaning and sanitization, and temperature screenings
prior to entry.

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Governance
At Alcon, our core values include protecting the health and safety of ourassociates, communities, and the environment. Alcon is committed to creating
safe workplaces, reducing environmental impacts across our business lifecycle,
and building a strong culture. We believe everyone is responsible for the HSE of
our community, and we expect everyone we work with to follow our guidelines.
We encourage our associates and partners to report unsafe conditions andbehaviors in accordance with our Speak Up for Safety Policy.
Our global HSE department develops our corporate HSE policies andstandards, management tools, and training site to mitigate risk and drive
continuous improvement. Each Alcon manufacturing site has a dedicated HSEteam and a cross-functional HSE Committee. Our commercial locations havedesignated HSE champions as well. Alcon’s annual goal-setting process focuseson continual improvement, taking into consideration results of internal andexternal assessments, health and safety performance, and changing regulatory
requirements.
Alcon’s robust HSE change management process outlines requirements for
identifying and managing HSE risks associated with capital investment projects
and plant modifications, from initiation through handover operations. Foralignment, we share standards throughout Alcon locations.

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Safety Management Systems
Our global safety standards play a crucial role in providing a healthy and safe
working environment for our associates and visitors. We use risk registers at
our sites to identify all HSE risks and necessary controls. Alcon’s site leadershipreviews our risk action plans annually.
Alcon’s site leadership also takes a proactive role in overall safety performance bypromoting leadership and associate collaboration on safety with activities, suchas management walk-throughs, town hall meetings, and team safety huddles.
We have a robust investigation process that quickly identifies actual or potential
incidents that could result in a serious injury or fatality. Potentially serious eventsare communicated to sites to identify the need for corrective actions.
In 2019, we rolled out our Supervisor Boot Camp training to manufacturingsite leaders to enhance our culture of safety. The training coaches leaders tocorrect unsafe conditions, address HSE-related issues, and communicate HSErelated concerns effectively. In 2019, we conducted 42 boot camp sessions at 14
locations, training 597 leaders.

Contractor Safety
We also evaluate contractor health and safety with a third-party assessor
ahead of their arrival on Alcon locations; additionally, we audit their activities
while they are on location. We regularly evaluate contractors’ compliance with
our HSE requirements. Deficiencies in programs and training identified in the
pre-screening evaluation are addressed before contractors arrive at a location.
Operational performance gaps are immediately corrected to prevent adverse
impact to associates, contractors, or visitors.

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ESG
Performance Data

LOST TIME INCIDENT RATE

Content Indices

TOTAL RECORDABLE CASE RATE
0.74

0.18
0.15

32

0.78

0.62

0.15

0.53

0.51

0.12
0.10

2015

2016

2017

2018

2019

MANAGEMENT WALK-THROUGHS

2015

2016

2017

2018

2019

NEAR MISS AND GOOD CATCH RATE

5,586
60
3,911
3,083

3,129

2016

2017

48

2,482

2015

2018

2019

37

38

2015

2016

2017

2018

For definitions, see footnotes on page 45

7,685Good Catches
fixed by ourassociates

5,586 HSE
management
walk-throughs

54

2019

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ESG
Performance Data

Content Indices33

Wellness Activities
At Alcon, health and wellness promotion is critical to creating an energized andproductive workforce, both on and off the job. Alcon sites worldwide undertook
initiatives to promote the health and well-being of associates. During 2019, someof the offerings included access to fitness activities, healthy eating options, annual
health checks, flu vaccinations, mental health support, and first aid responders.

Occupational Health
Our manufacturing sites conduct medical surveillance to better protect ourassociates. HSE associates collaborate with Occupational Health Group to workthrough data and implement engineering controls. For example, Alcon Fort
Worth North (Texas) installed noise-reducing ceiling tiles in the workplace toprotect our associates’ hearing at work.

Our Results
HIGHLIGHT STORY

Alcon tracks our safety performance for both associates and contractors. In
2019, the main injuries associates sustained were sprains and strains, while
contractors experienced sprains and strains as well as lacerations, cuts, andbites. We are pleased to report no fatalities, and our recordable and highconsequence work-related injuries improved year-over-year.
For more information, please see ESG Performance Data.

Commercial HSE Champions
In 2019, HSE champions were appointed in approximately 75 country
organizations. HSE champions are responsible to facilitate of HSE
management in each location. They are supported by the Regional HSE
business partners, as well as the HSE global technical functions (Safety,
Occupational Health & Environmental). Programs are divided into four
different categories: emergency preparation and incident reporting,accident prevention and reporting, fire and life safety, and HSE data anddocumentation. These programs guide the champions on the health andsafety management of our commercial associates.

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ESG
Performance Data

Content IndicesWorking With Integrity
We are committed to doing businessthe right way, based on the highest
standards of integrity.

34

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ESG
Performance Data

Content Indices

35

Business Ethics

Governance

We are committed to doing business the right way, without exception, andwe expect our associates to adhere to the highest standards of honesty andintegrity. We designed our global ethics and compliance program to promote a
culture of ethical behavior in accordance with the Compliance Program Guidance
published by the Office of the Inspector General, US Department of Health andHuman Services. Alcon’s framework of ethics governance covers standards of
behavior, associate training, auditing, reporting, and disciplinary actions.

The Audit and Risk Committee of the Alcon Board of Directors supervises
our global ethics and compliance program and receives regular updates oncompliance-related matters. The program, led by the Global Head, Integrity andCompliance under the functional leadership of our SVP, General Counsel andCorporate Secretary, is intended to prevent, detect, and mitigate compliancerisk across the organization. Furthermore, the corporate Audit and Compliance
Committee, chaired by our Chief Executive Officer, meets quarterly to provide
strategic direction and oversight relating to the implementation of thecompliance program and management of compliance risks. We have alsoestablished similar compliance committees at the regional and country levels.

Our Code of Business Conduct defines our standards of conduct and theshared responsibility of all our associates and our Board of Directors to act
ethically and responsibly. The Code is available in 23 languages, as is the
mandatory training and certification covering the Code, which is delivered to
all associates annually. We adhere to additional compliance policies including
guidance from industry association groups, such as AdvaMed, AbiMed,
APACMED, and MedTech, which advise on the appropriate rules of engagementwith healthcare professionals. These policies and associated training programs
are available in more than 20 languages, and they are updated regularly.

Code of Ethics & Healthcare
Professionals
HC-MS-510a.2

The Lens, our global policy on professional practices, defines the requirements
for associates interacting with healthcare professionals. The Lens emphasizes five
ethical principles that apply to all Alcon interactions with healthcare professionals:• We must put patients and consumers first• We must act with clear and proper intent• We must research for the right reasons• We must engage appropriately• We must fund and donate responsiblyOur Story

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We embed this core policy into each of our business operations around theworld. We communicate these requirements to our associates through a multichannel approach that involves formal training on global and local perspectives,
quick reference guides to assist with daily activities, and frequent reminders tokeep these principles front of mind.

Preventing Off-Label Use
HC-MS-270a.2

We are committed to communicating about our products and services responsibly
and in a manner that is accurate, truthful, and appropriate for the intended
context. We promote our products according to their approved use, and we design
our policies and procedures, including The Lens, in accordance with requirements.
In 2019, we introduced a new approval process for promotional materials. The
process consists of a single global review and approval tool to review, approve, andretain evidence of our promotional materials. We regularly monitor our existingmaterials for corrective action.

Monitoring Compliance
We test compliance with our policies and procedures through our auditing andmonitoring program on an annual basis. Our global risk and controls assessment
process guides these efforts. Our audits provide insights to our different
compliance risks by region and country as well as by type of interaction. Any
action items identified are tracked, and corrections made in a timely manner. Any
violations of our Code of Business Conduct or policies are investigated.

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Performance Data

Content Indices

36

Reporting Concerns
We expect our associates to speak up and report ethical concerns, so we
continue to earn and maintain the trust of our stakeholders. Our Code ofBusiness Conduct stresses that we build trust by speaking up, and we reinforce
the importance of this through training and communications programs, “SpeakUp” posters throughout our facilities, and talking points in our leadershipcommunications.
We foster an environment where our associates can ask questions and raise
concerns about unethical or inappropriate behavior in good faith, without fear of
retaliation. We have processes to enable any associate to speak up at any time.
An independent third party maintains Alcon’s Ethics Helpline, which provides
24/7 live and web-based support in 21 languages. All reported concerns arereviewed in a timely manner. For any instances of confirmed misconduct, we
carry out appropriate corrective or disciplinary actions up to and including
termination of employment.

Our Results
In the last five years, we have achieved a 98% or better completion rate for
Code of Business Conduct Training. We have not incurred any monetary losses
resulting from ethics in the five year period ending in 2019.
For more information, please refer to ESG Performance Data.

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Performance Data

Content Indices37

Responsible Procurement &Supply Chain
Our stakeholders expect Alcon to apply our values throughout our supply chain.
Our commitment starts with procurement and continues through the traceabilityof our products throughout the distribution chain.

Governance
Our Procurement team is tasked with responsible procurement, supplier
diversity, and reporting of conflict/critical minerals throughout Alcon’s supply
chain. In addition, our Supply Chain, Integrity and Compliance, and Quality
Operations functions contribute to our supply chain management efforts.
Alcon’s Integrity and Compliance function evaluates new and existing suppliers
for potential risks and works to reduce or eliminate risk issues with appropriate
mitigation plans.
We expect our suppliers to meet Alcon’s standards in delivery, cost, innovation,and regulatory targets. In order to do so, we collect and track this data throughbusiness reviews and when we are evaluating suppliers for new business.

The Third Party Code of Conduct aligns with Alcon’s Code of Business Conduct.
We provide a link to the Third Party Code of Conduct in our Global Master Service
Agreement and in our electronic purchase orders. We require our third parties
to comply with the standards defined in the Code. Furthermore, we expect third
parties to adopt, with their own suppliers, standards that broadly cover the same
principles contained in our Third Party Code of Conduct.

Track & Trace Program
HC-MS-430a.2

Third Party Code of Conduct
We promote the societal and environmental values of the United Nations Global
Compact to our suppliers and use our influence, where possible, to encourage
their adoption. The Alcon Third Party Code of Conduct combines the United
Nations Global Compact, the United Nations Guiding Principles on Business andHuman Rights, and other international standards or accepted good practices.
Our Third Party Code of Conduct covers numerous ESG topics including
labor rights, health and safety, environment, animal welfare, anti-bribery andfair competition, data privacy and information protection, conflict minerals,
management systems, and trade sanctions and export controls.

To maintain traceability of our products within the distribution chain, Alcon applies
track and trace procedures that comply with global regulatory requirements. These
track and trace procedures monitor end-to-end traceability and identification
through all stages of manufacturing and distribution. To maintain the safety andsecurity of the supply chain, Alcon uses Unique Device Identifiers (UDIs) on
required medical device packaging and finished product level serialization on
all prescription drugs. Both the UDI and drug product serialization incorporate
human and machine-readable identification that provides enhanced producttracing at the customer level.

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Critical Materials
HC-MS-430a.3

Most critical materials and production processes used in the manufacture of Alcon’s
products are, where possible, dual sourced. Alcon maintains an ongoing risk mitigation
project team to manage the risks in our supply chain of critical materials. We conductbusiness with a wide range of suppliers, and our manufacturing operations are notoverly dependent on a single supplier, except where intellectual property and/or otherexclusivity agreements exists. Our annual spend with the largest direct material supplier
to Alcon accounts for less than 4% of our total annual direct material expenditure.
We seek to understand the origin of the materials that go into our products, and wehave adopted a formal Conflict Minerals policy, which we communicate to and enforce
with our suppliers. This policy describes our commitment to compliance with conflictminerals requirements, supplier due diligence, and ongoing supply chain evaluation.
Annually, we establish and document our process to evaluate our products, in order
to identify and assess the presence and sources of conflict minerals in the supply
chain. Our Conflict Minerals Core Team uses standardized documentation to capture
data, key decisions, and processes and procedures related to the use and sources ofconflict minerals in our products. We retain such documentation in accordance with our
corporate document retention policy. On May 29, 2020, we published our first Conflict
Minerals Report as a standalone company.
As we move forward, we are improving our due diligence process by increasing
supplier responses to our Reasonable Country of Origin Inquiry (RCOI) in terms ofaccuracy, timeliness, and completeness.

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Performance Data

Content Indices•

Leveraging supplier diversity results to meet internal and external goals•

Measuring success based on quarterly and annual metrics for supplier diversity

We seek to partner with suppliers in the following categories:•

Women-Owned Business Enterprises (WBE)•

Minority-Owned Business Enterprises (MBE)•

Veteran-Owned Business Enterprises (VBE)•

Small Business Enterprises (SBE)•

Lesbian/Gay/Bisexual/Transgender-Owned Enterprises (LGBTE)

As a member of the Dallas Fort Worth (DFW) Minority Supplier Development
Council and the Women’s Business Council Southwest, Alcon participates invarious outreach activities to support our supplier diversity goals and objectives.
These outreach activities provide an opportunity to promote innovation
through the introduction of new products, services, and solutions, as well as tocollaborate on industry best practices.

Our Results
We track our spending on diverse suppliers to measure our impact on diverseand small business enterprises. In 2019, Alcon spent 12% of our US supplierspend on qualified diverse suppliers.
2019 DIVERSE SUPPLIER SPEND
Diverse Supplier Category

Supplier Diversity Program
Alcon continually seeks to identify and collaborate with best-in-class diverse
suppliers. To this end, we are committed to building a strong Supplier Diversity
Program in the US by:•

Expanding the inclusion of large and small diverse suppliers in the
procurement process•

Seeking diverse and/or small suppliers through outreach efforts•

Communicating the value of supplier diversity to stakeholders

38

2019

All Diverse and Small Suppliers$226M

Minority-Owned Business Enterprise$33M

Women-Owned Business Enterprise$50M

Veteran-Owned Business Enterprise$7M

Small Business Enterprise$199M

LGBT-Owned Enterprise$0.31M

For more information, please see ESG Performance Data.

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Cybersecurity & Data Privacy
Complex global legislation regulates the collection, processing, storage, andtransfer of personal data related to patients, customers, and associates. As newand enhanced privacy regulations and penalties are enacted around the world,
failure to comply with the regulations could negatively affect Alcon’s reputationand our stakeholder relationships.
Many of our technological advancements, such as our Digital Health Suite withcloud-based applications, enable exciting opportunities for data collection andanalysis while improving customer experiences. However, these advancements
also increase our responsibility to protect the personal information entrusted
to us.
In 2012, we began a multi-year software implementation project tostandardize our digital processes, enhance data transparency, and integrate
our information technology systems across our global operations. To dothis, we made a significant investment in a new enterprise resource planningsoftware platform. The consolidation of our enterprise-wide data and therationalization of systems will enable Alcon to better protect information assets
under our Cybersecurity and Information Management processes.

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Performance Data

Content Indices

39

Governance
Alcon’s Enterprise Risk Management (ERM) team monitors risks in these areas
and regularly reports to the Alcon Board of Directors. Our IT Security team andIntellectual Property & Data Privacy team also support our cybersecurity andcertain data privacy efforts. The Alcon Security Operations Center is responsible
for our Cybersecurity Incident Management and Response process. Together with
the Alcon Crisis Management process, this process oversees consistent cybermanagement across our business areas.
The Alcon Global Privacy Office (GPO), headed by Alcon’s Global Head of Privacy,
is responsible for managing our privacy compliance. The Global Head of Privacy
reports directly to our SVP, General Counsel and Corporate Secretary, supported
by regional privacy officers across North America, Europe, and local privacy teams
worldwide. The GPO works in close cooperation with our IT Security, Legal, andCompliance functions. The GPO is represented on the Alcon Audit and Compliance
Committee, and this office participates in our ongoing ERM process. Our Global
Privacy Program aims to protect privacy with an effective framework of policies,
procedures, and training that addresses the management of personal data.
Our Global Policy on the Protection of Personal Data establishes global
requirements for the fair and lawful collection, processing, handling, and protectionof personal data by and on behalf of Alcon. Protecting this information is crucial
to preserving our stakeholders’ trust in Alcon, as well as protecting our brandand reputation.
In addition, we continually monitor compliance with privacy-related laws in eachof our markets around the globe, such as the Health Insurance Portability andAccountability Act of 1996 (HIPAA), General Data Protection Regulation (GDPR) in
Europe, and many other national privacy and cybersecurity laws.

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ESG
Performance Data

Content IndicesTraining & Education

Our Results

We center our cybersecurity training and education on user awareness. We cover
key topics, such as:

Alcon measures the effectiveness of our cybersecurity and data privacy efforts inmany ways.

•

Phishing•

Malware•Cyber best practices•

High-level security risks

We provide general information and education using multiple channels to
educate and alert associates. We also provide general, function-specific, andregionally relevant data privacy training.
Alcon’s security and compliance model is aligned with internationally recognized industry
standards for security, such as those from the National Institute of Standards andTechnology (NIST) and the International Organization for Standardization (ISO). Alcon
is currently executing a transition of assets related to its spin-off from Novartis, and thecompany is using specific protocols to maintain the effectiveness of its security program
during the process.

40

Education

All full-time associates undergo information security training andphishing testing, and based on testing outcomes, information security
training is adjusted to address deficiencies

Customer
Satisfaction

System downtime caused by information security incidents

Strategy

Information security maturity based on standard security frameworks
for the industry

Staffing/
Spending

Dedicated resources to IT Security and Compliance functions in key
roles; percentage of IT budget allocated to IT Security

Audit/
Compliance

Information security related audit issues

Security
Incidents

Number of priority 1 and 2 incidents

Vulnerability

Percentage of devices with current security software; percentage ofsystems with no critical vulnerabilities

Exception
Management

Number of security standard exceptions on high-risk systems

For more information, please visit Alcon’s Responsible Business
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Performance Data

Content Indices

ESG Performance Data

41

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Performance Data

Content Indices

42

2015

2016

2017

2018

2019

Number of first-to-market launches

12

8

10

14

14

Number of product approvals (major markets)1

16

26

43

64

58

Number of FDA-initiated recalls

—

—

—

—

—

Class I

—

—

—

—

—

Class II

—

—

—

—

—

Class III

—

—

—

—

—

5

3

3

3

1

Recalls in non-US markets (medical device)

5

3

1

3

—

Recalls initiated voluntarily and not reported to FDA - class III (medical device)

—

—

—

—

1

Total recalls for medical device products (units)349,822

266,074558,274

53,712

79

Recalls in non-US markets (medical device)

129,144

208,57293

15,060

—

—

—

—

—

79

Products listed in the FDA’s MedWatch Safety Alerts for Human Medical
Products database
SASB HC-MS-250a.2

—

—

—

12

—

Number of fatalities related to products as reported in the FDA Manufacturer andUser Facility Device Experience
SASB HC-MS-250a.3

—

—

—

—

—

Number of FDA enforcement actions taken in response to violations of Current
Good Manufacturing Practices (CGMP), by type
SASB HC-MS-250a.4

—

—

—

—

—

R&D PRODUCTIVITYQUALITY MANAGEMENT SYSTEM
Number of recalls issued
SASB HC-MS-250a.1

Total recalls for medical device products

Recalls initiated voluntarily and not reported to FDA (medical device)QUALITY MANAGEMENT SYSTEM

1

US / EU / Canada / Japan / Brazil / Korea / Australia / China / Russia / India

2

CyPass Micro-Stent System

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Performance Data

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43

2015

2016

2017

2018

2019

N/A

N/A

N/A

N/A

0.73

549

646

554

593

529

Number of surgeries

34,00047,00034,00036,00038,000

Number of people treated393,000

484,000

392,000

414,000

308,000

3,373

3,616

3,293

3,524

3,7934

Total hazardous (tons)

18,836

19,206

19,784

20,462

20,993

Total non-hazardous (tons)

18,55917,07819,87821,79725,6554

1,016

947

780

726

7614

GHG emissions intensity ratio for the organization on-site generated energy (t/TJ)

55

57

56

55

55

GHG emissions intensity ratio for the organization purchased energy (t/TJ)

151

151

143

142

141

RELATIVE PRICE PERFORMANCE
Ratio of weighted average rate of net price increases in the US (for all products) tothe annual increase in the US CPISASB HC-MS-240a.1
PHILANTHROPY3
Number of medical missions supported

ENVIRONMENTAL PERFORMANCE
Water consumption (megaliters)
GRI 303-5
Total water consumption from all areas (megaliters)
Waste by type and disposal method (tons)
GRI 306-2

Energy intensity (gigajoules/million units produced)
GRI 302-3
Energy intensity ratio for the organization (gigajoules/million units produced)
Emissions intensity (tons of GHG/terajoule)
GRI 305-4

3

For safety reasons, Alcon does not support medical missions to countries with US State Department Level 4 travel advisories. In 2018, Alcon supported 79 missions to Haiti. In 2019, Haiti wasat a Level 4 for several months, which affected mission activity.

4

Includes 67 Commercial Operations sites in 2019.

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Performance Data

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44

2015

2016

2017

2018

2019

Total turnover rate

11.7%

11.4%

9.3%

8.7%

9.0%5

Voluntary turnover rate

7.2%

7.1%

6.0%

5.8%

6.0%

Global female representation

48%

47%

Global female representation (managers/supervisors)

33%

34%

US ethnically diverse

42%

44%

25%

26%

TALENT ATTRACTION & RETENTION

DIVERSITY & INCLUSION

6

US ethnically diverse (managers/supervisors)6
SAFETY PERFORMANCE
Work-related injuries
GRI 403-9
Employee fatalities

—

—

1

—

—

Contractor fatalities

—

—

—

—

—

Not Tracked

1

—

1

—

196

155

143

148

143

Employee fatalities

—

—

0.01

—

—

Contractor fatalities

—

—

—

—

—

Not Tracked

0.003

—

0.005

—

0.62

0.51

0.74

0.78

0.53

0.62

0.51

0.74

0.78

0.53

0.15

0.12

0.15

0.18

0.10

High-consequence work-related injuries (excluding fatalities) — associates
Recordable work-related injuries (including fatalities) — associates
Work-related injury rate
GRI 403-9

High-consequence work-related injuries (excluding fatalities) — associates
Recordable work-related injuries (including fatalities) — associates
Employee Total Recordable Case Rate (TRCR)
Employee Lost Time Incident Rate (LTIR)87

5

Total turnover rate in 2019 was calculated manually, due to the transition to a new human resources software application for our associates in the UK and Ireland in October 2019.

6

Includes American Indian/Alaska Native, Asian, Black/African-American, Hispanic/Latino, Native Hawaiian/Other Pacific Islander, and two or more races.

7

Total Recordable Case Rate (TRCR): Indicator represents the frequency of recordable cases (injury and illness) for all Alcon associates and third-party personnel. It is calculated asfollows: number of all work-related recordable cases divided by the number of hours worked by Alcon associates and third party personnel and multiplied by 200,000.

8

Lost Time Incident Rate (LTIR): Indicator represents the frequency of work-related lost time cases (injury and illness). It is calculated as follows: the total number of work-related casesof injury or illness with lost time is divided by number of hours worked by Alcon associates and third party personnel and multiplied by 200,000.

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45

2015

2016

2017

2018

2019

Code of Business Conduct Training completion rate

99%

99%

99%

98%

98%

Number of grievances filed per year

955

842

607

473

513

Total amount of monetary losses as a result of legal proceedings associated withbribery or corruption
SASB HC-MS-510a.1

—

—

—

—

—

Total amount of monetary losses as a result of legal proceedings associated withfalse marketing claims
SASB HC-MS-270a.1

Not Tracked

Not Tracked

Not Tracked

—

—

100%

100%

100%

100%

100%

Not Tracked

Not Tracked

Not Tracked

Not Tracked

100%

BUSINESS ETHICSRESPONSIBLE PROCUREMENT AND SUPPLY CHAIN
Percentage of (1) entity’s facilities participating in third-party audit programs for
manufacturing and product quality
SASB HC-MS-430a.1
Percentage of (2) Tier 1 suppliers’ facilities participating in third-party audit
programs for manufacturing and product quality
SASB HC-MS-430.2

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Benefiting Customers& PatientsContent Indices
SASB Index

47

GRI Index

49

Company Topic-Specific
Disclosures

52

Glossary

53

Legal Disclaimers

54

Caring for Our
Environment

Winning in the
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Working With Integrity

ESG
Performance Data

Content Indices46

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47

SASB Index
SASB Topic & Code

Accounting Metric

Report Section

Omissions

Activity Metric
HC-MS-000.A

Number of units sold by product category.

ESG Performance Data

Given the breadth and diversity of Alcon's
product portfolio, Alcon does not disclose
this data.

Affordability & Pricing
HC-MS-240a.1

Ratio of weighted average rate of net priceincreases (for all products) to the annual
increase in the US Consumer Price Index.

ESG Performance Data

Affordability & Pricing
HC-MS-240a.2

Description of how price information for eachproduct is disclosed to customers or to theiragents.

Access, Affordability & Pricing;
Disclosure of Pricing Information

Product Safety
HC-MS-250a.1

Number of recalls issued, total units recalled.

ESG Performance Data

Product Safety
HC-MS-250a.2

List of products listed in the FDA’s MedWatch
Safety Alerts for Human Medical Products
database.

ESG Performance Data

Product Safety
HC-MS-250a.3

Number of fatalities related to products asreported in the FDA Manufacturer and User
Facility Device Experience.

ESG Performance Data

Product Safety
HC-MS-250a.4

Number of FDA enforcement actions taken
in response to violations of current Good
Manufacturing Practices, by type.

ESG Performance Data

Ethical Marketing
HC-MS-270a.1

Total amount of monetary losses as a resultof legal proceedings associated with false
marketing claims.

ESG Performance Data

Disclosure does not include whether
the range, median, or typical price areprovided to customers; does not include
the frequency of confidentiality clauses inpurchasing agreements with heath careproviders that restrict them from sharing
with third parties the price they paid.

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SASB Topic & Code

Accounting Metric

Report Section

Ethical Marketing
HC-MS-270a.2

Description of code of ethics governing
promotion of off-label use of products.

Business Ethics - Preventing OffLabel Use

Product Design & Lifecycle
Management
HC-MS-410a.1

Discussion of process to assess and manage
environmental and human health considerations
associated with chemicals in products and meetdemand for sustainable products.

Sustainable Products &Services - Compliance With
Chemical Regulations

Product Design & Lifecycle
Management
HC-MS-410a.2

Total amount of products accepted for takeback
and reused, recycled, or donated, broken downby: (1) devices and equipment and (2) supplies.

Sustainable Products &Services - Reprocessing Used or
Obsolete Equipment

Supply Chain Management
HC-MS-430a.1

Percentage of (1) entity's facilities and (2) Tier
I suppliers’ facilities participating in third-party
audit programs for manufacturing and productquality.

ESG Performance Data

Supply Chain Management
HC-MS-430a.2

Description of efforts to maintain traceability
within the distribution chain.

Responsible Procurement& Supply Chain - Track &Trace Program

Supply Chain Management
HC-MS-430a.3

Description of the management of risks
associated with the use of critical materials.

Responsible Procurement &Supply Chain - Critical Materials

Business Ethics
HC-MS-510a.1

Total amount of monetary losses as a result oflegal proceedings associated with bribery or
corruption.

ESG Performance Data

Business Ethics
HC-MS-510a.2

Description of code of ethics governinginteractions with health care professionals.

Business Ethics - Code of Ethics &Healthcare Professionals

ESG
Performance Data

Content Indices48

Omissions

Alcon replaced this metric based on the lackof available data.

Disclosure does not identify the criticalmaterials that present a significant risk
to Alcon's operations, the type of risk(s)they represent.

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ESG
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Content Indices49

GRI Index
General Disclosures

Report Section or Direct Response

Page

ORGANIZATIONAL PROFILEGRI 102: General
Disclosures 2016

102-1: Name of the Organization

Alcon Inc.

102-2: Activities, brands, products, and services

Our Story - Company Overview

5102-3: Location of headquarters

Our Story - Company Overview

5102-4: Location of operations

Our Story - Company Overview

5102-5: Ownership and legal form

Alcon is a publicly traded company traded on the New York Stock
Exchange and SIX Swiss Exchange.

102-6: Markets served

Our Story - Company Overview

5102-7: Scale of the organization

Our Story - Company Overview
See our 2019 Annual Report for additional information on net
revenues and quantity of products provided in 2019.

5

102-8: Information on employees and other workers

As of 2019, approximately 41% of our full time associates are basedin the US, followed by 10.4% in Germany and 5.1% in Indonesia.

102-10: Significant changes to the organizationand its supply chain

As of 2019, Alcon completed its spinoff from Novartis, and it istrading as an independent company.

102-14: Statement from senior decision-makerA Message From Our CEO

STRATEGY
GRI 102: General
Disclosures 2016

3

ETHICS AND INTEGRITY
GRI 102: General
Disclosures 2016

102-16: Values, principles, standards andnorms of behavior

Our Story - Alcon Blueprint; Business Ethics

102-17: Mechanisms for advice and concerns about ethics

Business Ethics - Reporting Concerns

102-18: Governance structure

The Governance and Nomination Committee oversees theCompany’s global strategy for corporate governance, environmental
stewardship, sustainability, and corporate social responsibility. See
the Governance section of our website for additional information on
Alcon's governance structure.

102-20: Executive-level responsibility for economic,
environmental, and social topics

Sustainability Governance102-23: Chair of the highest governance body

The Chair of the Alcon Board of Directors is a separately held
position from the Chief Executive Officer.

6; 35
36

GOVERNANCE
GRI 102: General
Disclosures 20168

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General Disclosures

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Performance Data

Content Indices

Report Section or Direct Response

102-24: Nominating and selecting thehighest governance bodySee the Governance and Nomination Committee Charter.

102-32: Highest governance body's rolein sustainability reporting

Alcon's Governance and Nomination Committee reviewed andapproved this Corporate Responsibility Report.

50

Page

REPORTING PRACTICESGRI 102: General
Disclosures 2016

102-45: Entities included in consolidated financial statements

See our 2019 Annual Report for a list of all entities included in ourconsolidated financial statements.

102-46: Defining report content and topic boundaries

About this Report - Defining Report Content

8102-47: List of material topics

About this Report - Materiality

8102-48: Restatements of information

As this is Alcon's first Corporate Responsibility Report, we have notmade any restatements of information for 2019.

102-49: Changes in reporting

As this is Alcon's first Corporate Responsibility Report, we have notmade any significant changes in reporting for 2019.

102-50: Reporting period

This 2019 Corporate Responsibility Report covers Alcon's operations
from January 1, 2019, through December 31, 2019, unlessotherwise indicated.

102-51: Date of most recent report

This is Alcon's inaugural Corporate Responsibility Report as anindependent company.

102-52: Reporting cycle

We plan to publish a Corporate Responsibility Report annually.

102-53: Contact point for questions regarding the report

For further questions, please email the Investor Relations team atinvestor.relations@alcon.com.

102-54: Claims of reporting in accordance with
the GRI Standards

We referenced the GRI Standards in the development of thisSustainability Report.

102-55: GRI Content index

Content Indices - GRI Index

102-56: External assurance

Alcon is not conducting external assurance of our Corporate
Responsibility Report at this time.

49-51

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GRI Topic-Specific Disclosures

ENERGYGRI 103: Management
Approach 2016

GRI 302: Energy 2016
WATER
GRI 103: Management
Approach 2016
GRI 303: Water andEffluents 2018
EMISSIONSGRI 103: Management
Approach 2016

GRI 305: Emissions 2016
EFFLUENTS AND WASTE
GRI 103: Management
Approach 2016

Working With Integrity

ESG
Performance Data

Content Indices

Report Section or Direct Response

51

Page

103-1: Explanation of the material topic and its boundary

Reducing Our Environmental Footprint - Energy Usage24

103-2: The management approach and its components
103-3: Evaluation of the management approach302-3: Energy intensity

Environmental Sustainability Strategy
Reducing Our Environmental Footprint - Energy Usage
ESG Performance Data - Environmental Performance

21
24
43

103-1: Explanation of the material topic and its boundary

Reducing Our Environmental Footprint - Water Management24

103-2: The management approach and its components
103-3: Evaluation of the management approach
303-5: Water consumption

Environmental Sustainability Strategy
Reducing Our Environmental Footprint - Water Management
ESG Performance Data - Environmental Performance

21
24
43

103-1: Explanation of the material topic and its boundary25

305-4: Emissions intensity

Reducing Our Environmental Footprint - Greenhouse Gas
Emissions
Environmental Sustainability Strategy
Reducing our Environmental Footprint - Greenhouse Gas(GHG) Emissions
ESG Performance Data - Environmental Performance

43

103-1: Explanation of the material topic and its boundary

Reducing Our Environmental Footprint - Waste Minimization

25

103-2: The management approach and its components
103-3: Evaluation of the management approach306-2: Waste by type and disposal method

Environmental Sustainability Strategy
Reducing Our Environmental Footprint - Waste Minimization
ESG Performance Data - Environmental Performance

21
25
43

Talent Attraction & Retention

27

103-2: The management approach and its components
103-3: Evaluation of the management approach

GRI 306: Effluents andWaste 2016
TALENT ATTRACTION AND RETENTIONGRI 103: Management103-1: Explanation of the material topic and its boundary
Approach 2016103-2: The management approach and its components
103-3: Evaluation of the management approach
GRI 401: Employment 2016
401-1: New employee hires and employee turnover
OCCUPATIONAL HEALTH AND SAFETY
GRI 103: Management103-1: Explanation of the material topic and its boundary
Approach 2016103-2: The management approach and its components
103-3: Evaluation of the management approach
GRI 403: Occupational
403-9: Work-related injuries
Health and Safety 2018
DIVERSITY AND EQUAL OPPORTUNITY
GRI 103: Management103-1: Explanation of the material topic and its boundary
Approach 2016103-2: The management approach and its components
103-3: Evaluation of the management approach
GRI 405: Diversity and405-1: Diversity of governance bodies and employees
Equal Opportunity 2016

Talent Attraction & Retention
Talent Attraction & Retention - Our Results
ESG Performance Data - Talent Attraction & Retention
Health & Safety
Health & Safety
Health & Safety - Our Results
ESG Performance Data - Safety Performance
Diversity & Inclusion
Diversity & Inclusion
Diversity & Inclusion - Our Results
ESG Performance Data - Diversity & Inclusion

21
25

27-28
28
44
31
31-33
33
44
29
29-30
30
44

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Environment

Winning in the
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ESG
Performance Data

Content Indices

52

Company Topic-Specific Disclosures
Other Disclosures

MEDICAL INNOVATIONGRI 103: Management
Approach 2016
Self-Selected Metrics

Report Section or Direct Response

103-1: Explanation of the material topic and its boundary

Medical Innovation

103-2: The management approach and its components
103-3: Evaluation of the management approach
Number of first-to-market launches

Medical Innovation
Medical Innovation - Our Results
Medical Innovation - Our Results;
ESG Performance Data - R&D Productivity
Medical Innovation - Our Results;
ESG Performance Data - R&D Productivity

Number of product approvals (major markets)
PRODUCT QUALITY AND PATIENT SAFETY
GRI 103: Management103-1: Explanation of the material topic and its boundary
Approach 2016103-2: The management approach and its components
103-3: Evaluation of the management approach
Self-Selected Metric
HC-MS-250a.1: Number of recalls issued,
total units recalled
HC-MS-250a.2: Products listed in the FDA’s MedWatch
Safety Alerts for Human Medical Products database
HC-MS-250a.3: Number of fatalities related to products
as reported in the FDA Manufacturer and User Facility
Device Experience
HC-MS-250a.4: Number of FDA enforcement actions taken
in response to violations of current Good Manufacturing
Practices (cGMP), by type
ACCESS, AFFORDABILITY AND PRICINGGRI 103: Management103-1: Explanation of the material topic
Approach 2016
and its boundary
103-2: The management approach andits components
103-3: Evaluation of the management approach
Self-Selected Metrics
HC-MS-240a.1: Ratio of weighted average rate of net priceincreases (for all products) to the annual increase in the US
Consumer Price Index
SUSTAINABLE PRODUCTS AND SERVICESGRI 103: Management103-1: Explanation of the material topic and its boundary
Approach 2016103-2: The management approach and its components
103-3: Evaluation of the management approach
Self-Selected Metric

Weight of reprocessed parts shipped (metric tons)

Product Quality & Patient Safety

Page

10
10-12
10
10,
42
10,
42
13

Product Quality & Patient Safety
Product Quality & Patient Safety - Our Results
ESG Performance Data - Quality Management System

13-14
14
42

ESG Performance Data - Quality Management System

42

ESG Performance Data - Quality Management System

42

ESG Performance Data - Quality Management System

42

Access, Affordability & Pricing

15

Access, Affordability & Pricing

15-16

Access, Affordability & Pricing - Our Results
ESG Performance Data - Relative Price Performance

Environmental Sustainability Strategy;
Sustainable Products & Services
Environmental Sustainability Strategy;
Sustainable Products & Services
Environmental Sustainability Strategy;
Sustainable Products & Services
Sustainable Products & Services - Reprocessing Used or
Obsolete Equipment

16
43

21-22
21-23
21-23
23

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ESG
Performance Data

Content Indices

AcronymDefinition

HVAC
IOL
ISO
KPI
LGBT
LGBTQ+

Heating, Ventilation, and Air Conditioning
Intraocular Lens
International Organization for Standardization
Key Performance Indicator
Lesbian, Bisexual, Gay, and Transgender
Lesbian, Gay, Bisexual, Transgender, Queer/
Questioning, and Other
Light-Emitting Diode
Lost Time Incident Rate
Minority-Owned Business Enterprises
Medical Technology Europe
Methyl Ethyl Ketone
Manufacturing and Technical Operations
Non-Governmental Organization
National Institute of Standards and Technology
Organic Light-Emitting Diode
Open Professional Employee Network
Phaco Development
Personal Protective Equipment
Quality Management System
Research & Development
Reasonable Country of Origin Inquiry
Registration, Evaluation, Authorization, andRestriction of Chemicals
Request for Proposal
Restriction of Hazardous Substances
Sustainability Accounting Standards Board
Small Business Enterprises
Silicone Hydrogel
Science Technology Engineering Mathematics
Total Recordable Case Rate
Unique Device Identifiers
United Nations
Veteran-Owned Business Enterprises
Women-Owned Business Enterprises
Women Innovating Now

53

Glossary
Acronym

AbiMedDefinition

Brazilian Association of Industry of HighTechnology Medical and Hospital Equipment,
Products, and Suppliers
AdvaMedThe Advanced Medical Technology Association
AED
Associate Experience Dashboard
APACMedAsia Pacific Medical Technology Association
AQA
Alcon Quality Analytics
ASC
Ambulatory Surgery Center
BD&L
Business Development & Licensing
CEI
Corporate Equality IndexCEO
Chief Executive Officer
CGMP
Current Good Manufacturing Practices
CNO
Chief Nursing Officer
CO2
Carbon Dioxide
CPI
Consumer Price Index
D&I
Diversity & Inclusion
DFW
Dallas - Fort WorthECA
Executive Committee of Alcon
ECP
Eye Care Provider
ERG
Employee Resource GroupERM
Enterprise Risk Management
ESG
Environmental, Social, and Governance
EU CLP
European Classification, Labeling, and Packaging
EUMDR
European Union Medical Device Regulation
EUROMCONTACT European Association of the Contact Lens andLens Care Product Manufacturers
FDA
Food and Drug Administration
GB&I
Global Business and Innovation
GDPR
General Data Protection Regulation
GFT
Global Franchise Team
GHG
Greenhouse Gas
GPO
Global Privacy Office
GRI
Global Reporting Initiative
HDM
Healthcare Decision Maker
HFC
Hydrofluorocarbons
HIPAA
Health Insurance Portability and Accountability Act
HSE
Health Safety Environment

Page
Number

35
35
28
35
14
11
29
3
42
25
43
29
38
11
18
28
39
3
22
14
22
14
8
39
11
21
39
8
15
25
39
21

LED
LTIR
MBE
MedTech EU
MEK
MTO
NGO
NIST
OLED
OPEN
PD
PPE
QMS
R&D
RCOI
REACH
RFP
RoHS
SASB
SBE
SiHy
STEM
TRCR
UDI
UN
VBE
WBE
WIN

Page
Number

24
3
40
11
38

24
44
38
22
25
29
17
40
30
29
16
3
13
3
38
22
16
22
8
38
3
27
44
37
17
38
38
30

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ESG
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Content Indices54

Legal Disclaimers
Forward-Looking Statements
This document contains “forward-looking statements” within the meaning of thesafe harbor provisions of the United States Private Securities Litigation ReformAct of 1995. Forward-looking statements can be identified by words such as:“anticipate,” “intend,” “commitment,” “look forward,” “maintain,” “plan,” “goal,”“seek,” “target,” “assume,” “believe,” “project,” “estimate,” “expect,” “strategy,”“future,” “likely,” “may,” “should,” “will” and similar references to future periods.
Examples of forward-looking statements include, among others, statements
Alcon makes regarding its liquidity, revenue, gross margin, effective tax rate,
foreign currency exchange movements, earnings per share, its plans anddecisions relating to various capital expenditures, capital allocation priorities andother discretionary items, and generally, its expectations concerning its future
performance and the effects of the COVID-19 pandemic on its businesses.
Forward-looking statements are neither historical facts nor assurances of future
performance. Instead, they are based only on Alcon’s current beliefs, expectations
and assumptions regarding the future of its business, future plans and strategies,
and other future conditions. Because forward-looking statements relate to the
future, they are subject to inherent uncertainties and risks that are difficult to predict.
Such forward-looking statements are subject to various risks and uncertainties
facing Alcon, including: the effect of the COVID-19 pandemic as well as other viralor disease outbreaks; the commercial success of its products and its ability tomaintain and strengthen its position in its markets; the success of its researchand development efforts, including its ability to innovate to compete effectively;
its success in completing and integrating strategic acquisitions; pricing pressure
from changes in third party payor coverage and reimbursement methodologies;
global economic, financial, legal, tax, political, and social change; the ability to obtainregulatory clearance and approval of its products as well as compliance with any
post-approval obligations, including quality control of its manufacturing; ongoing
industry consolidation; its ability to properly educate and train healthcare providers
on its products; changes in inventory levels or buying patterns of its customers; its
reliance on sole or limited sources of supply; ability to service its debt obligations;the need for additional financing through the issuance of debt or equity; its relianceon outsourcing key business functions; its ability to protect its intellectual property;
the impact on unauthorized importation of its products from countries with lower
prices to countries with higher prices; the effects of litigation, including productliability lawsuits; its ability to comply with all laws to which it may be subject; effect of

product recalls or voluntary market withdrawals; data breaches; the implementationof its enterprise resource planning system; its ability to attract and retain qualified
personnel; the accuracy of its accounting estimates and assumptions, including
pension plan obligations and the carrying value of intangible assets; legislativeand regulatory reform; the ability of Alcon Pharmaceuticals Ltd. to comply with its
investment tax incentive agreement with the Swiss State Secretariat for Economic
Affairs in Switzerland and the Canton of Fribourg, Switzerland; its ability to operate
as a stand-alone company; whether the transitional services Novartis has agreed toprovide Alcon are sufficient; the impact of being listed on two stock exchanges; theability to declare and pay dividends; the different rights afforded to its shareholders
as a Swiss corporation compared to a US corporation; and the effect of maintaining
or losing its foreign private issuer status under US securities laws. Additional factors
are discussed in Alcon’s filings with the United States Securities and Exchange
Commission, including its Form 20-F. Should one or more of these uncertainties orrisks materialize, or should underlying assumptions prove incorrect, actual results
may vary materially from those anticipated. Therefore, you should not rely on any ofthese forward-looking statements.
Forward-looking statements in this document speak only as of the date of its
filing, and Alcon assumes no obligation to update forward-looking statements asa result of new information, future events or otherwise.

Intellectual property
This report may contain references to our proprietary intellectual property. All
product names appearing in italics or ALL CAPS are trademarks owned by orlicensed to Alcon Inc.