ESG REPORT

2023

Environment | Social | GovernanceForeword by the

CEO and CFO“Economic growth and sustainability must go handin hand, we cannot prioritize one over the other"“In order to achieve sustainable development, we must
think of the present without compromising the future of thenext generations"Martti Hedman

Clemens Groot Koerkamp

Chief Executive Officer (CEO)

Chief Finance Officer (CFO)At DFE Pharma, sustainability is embedded in our strategy and purpose: “Your medicines, oursolutions, moving to a healthier world,” we aim to conduct our business sustainably to ensure
a positive impact on our environment and society.
Very proudly, in 2023, our sustainability efforts were rated with a Silver medal on EcoVadis,
making us one of the top 10% sustainability leaders of our sector. We have taken further
steps to strengthen the foundation of our ESG Program. We adapted our organizational setup
with even more focus on sustainability. We prepared for compliance with the requirementsof the European Corporate Sustainability Reporting Directive (CSRD) by conducting a double
materiality assessment and identifying the material topics on which we focus onsustainability strategy. On top of this, we commit to climate in line with the Paris Agreement
by submitting our near-term targets to SBTi.
In 2023, all our sites have been certified ISO14001. In transitioning from fossil fuel torenewable energy, we invested and installed a biomass boiler for our Cuddalore production
site that will eliminate at least 20 percent of our total greenhouse emissions. In 2024, we
expect to have this fully operational. We have collected emission data throughout the entire
value chain. This enables us to create product specific carbon footprints following theprinciples and framework of ISO14040:2006 life cycle assessment. With these insights, wewill further detail the roadmap and start initiatives to reduce the carbon impact of our
products further.

2

INTRODUCTION & STRATEGY / About this report

We also reinforced our social program by selecting the following focus areas: safety, health and wellbeing, diversity, equity and inclusion (DE&I), child labor, forced labor & human trafficking, career
management & training, and working conditions. DFE Pharma continues to encourage its employees
toward healthier lifestyles through training, voluntary check-ups, wellbeing, social andsponsoring sports events. As a commitment to community engagement, we launched our volunteering
policy to allow every employee to volunteer for up to eight hours annually in a local initiative. We areproud of our diverse workforce, which includes people of multiple nationalities and languages. In 2024,
we aim to sharpen our DE&I program by defining focus topics.
Doing good and honest business is crucial for DFE Pharma and our stakeholders. It is critical that DFE
Pharma maintains the trust and confidence of all its stakeholders. We do that by conducting business inaccordance with the principles of our Compass Code of Conduct. Honesty, transparency, and integrity
are its key pillars. We make business decisions on merits and never on personal favors. We
consistently ensure that all employees are trained on the principle.
While proud of our progress, we continue strengthening our ESG Program by executing our roadmap.
Our planned transition will require massive investments to make this a reality. We will work
closely with our suppliers to ensure the total chain approach and responsibly manage the carbon
impact of our final products. For 2024, we will prepare to ensure our reporting is in line with the CSRD
requirements. With that in mind, we hope you will enjoy reading the report, and we look forward toengaging with you and exchanging ideas (contact: esg@dfepharma.com).

Table of

CONTENTS
Introduction & Strategy
Foreword by the CEO and CFO

2Table of Contents

3

About this report4

Our purpose

5

Our Heritage

6

DFE Pharma: 2023 in Numbers

7

24

Employee Health and Wellbeing

25

Association and Collective Bargaining

26

Working Conditions

27

Employee Social and Sports Events

28

Diversity at DFE Pharma

29
30
31

Materiality Assessment Approach8

Materiality Results

9

Labor and Human Rights

Strategic Framework

10

Governance of ESG at DFE Pharma

11

Sustainable excipients12

Our contribution to climate

13

Greenhouse Emissions: Scope 1 and 2

14

Our approach to Scope 1 and 2 reduction

15

Greenhouse Emissions: Scope 3

16

Sustainable Sourcing

17

Sustainable Packaging

23

Employee Safety

DFE Pharma in the Community

Progress on ESG

Governance32

Business Conduct

33

Transparency: ESG disclosure and Reporting34

Data and Information Security

35

Appendix
Explanation of Materiality Topics

37

Definition of Key Performance Indicators

41

ESG Data: Environment

42

ESG Data: Social

44

ESG Data: Governance

47

18

GRI Content Index

48

Sustainable Packaging Roadmap

19

Measuring, Reporting & Assumptions

56

Water and Waste

20

Process to a revised and integrated sustainability strategy

57

Glossary

58

Contact Details and Disclaimer

59

Healthy and biodiverse world

21

Biodiversity and Animal Health & Welfare

3

Positive, inclusive and safe culture

21
22

INTRODUCTION & STRATEGY / Table of Contents

About thisREPORT

Aspects

Scope

Standards

DFE Pharma GroupGRI Standards 2021

Environmental |Social | Governance

Reporting Scope
In this annual ESG Report of DFE Pharma, including its subsidiaries,
we present the results concerning sustainability in the areas ofenvironment, society, and governance. We use the integral
Environmental, Social & Governance (ESG) framework.

Standards​
DFE Pharma has voluntarily applied the framework of the
Global Reporting Initiative (GRI) to report on ESG themes.
This report has been prepared with reference to the Global
Reporting Initiative (GRI) Standards 2021.

In this way, we assume responsibility for transparent and fairreporting. We also show the steps that we are taking
concerning sustainable business, which we hope will contribute toa better world.

The greenhouse emission figures were produced according
to the Greenhouse Gas Protocol (GHG Protocol). A thirdparty
reviewed
andassuredouremissions
reporting standards are in accordance with the GHG
Protocol.

Materiality
A crucial step in our readiness for CSRD has beenachieved by performing a double materiality assessment
in 2023 to determine the ESG issues relevant to
DFE Pharma and its stakeholders. The materiality
analysis was performed according to the double material
assessment following the European Sustainability
Reporting Standards (ESRS).

This report voluntarily informs our stakeholders about our
strategy,commitments,
andprogressregardingour environmental, social, and governance aspects. Our
headquartersarelocatedat
Kleverstraße 187, 47574 Goch, Germany.
For a few ESG topics, the scope has been expanded to include DFE
Pharma’svalue chain (from suppliers to customers) if the materiality analysis
shows that DFE Pharma has a material impact on these topics
within thevalue chain, or that these have a material impact on DFE Pharma.
This report covers the activities of the year from January 1 to
December 31, 2023. Unless otherwise stated, this report includes
information and the consolidated figures of DFE Pharma Group. It
is published in English on our website. The 2022 and 2021 ESG
Report are also available on our website.

4

INTRODUCTION & STRATEGY / About this report

DFE Pharma uses EcoVadis to measure the progress of its
ESG journey. As such, we participate in an annual
assessment.
Starting with the 2025 reporting year, DFE Pharma willreport complying with the Corporate Sustainability
Reporting Directive (CSRD). Within this ESG report, we
prepare for this reporting requirement and take the next
step towards a complete annual sustainability report.
The 2023 data are reported in this report's ESG.

Our

PURPOSE
About us
We strive to bring value to all our stakeholders by providing premium quality services to ourcustomers and their patients; supporting the communities we live and work in; and creating agreat place for our employees to work. We are driven by our purpose - “Your medicines, oursolutions. Moving to a healthier world”- every day and everywhere.
Our vision is to continue being a global leader in future-proof and sustainable excipients. We
are focused on remaining a formulation and excipients expert with a truly worldwide
presence. This approach and leveraging digitalization will allow us to be closer to ourcustomers and deliver even superior customer service. We are ready to lead the delivery ofsolutions in all our product categories with the highest standards.
A crucial component that breathes life into the strategy and drives its implementation:
culture. Recognizing the pivotal role of culture in shaping the organization's destiny, theleadership team set out to define DFE Pharma's values, and behaviors, building upon our
purpose: Your medicines, our solutions. Moving to a healthier world. They represent who weare and give guidance on how we collaborate and run our business.

About our market and customers

Customers come first

Respect always

Committed
to integrity

The pharmaceutical industry needs to accelerate the transition to more socially andenvironmentally sustainable business models. DFE Pharma aims to ensure collaboration
throughout our entire value chain toward better overall environment, social, and governanceperformance. DFE Pharma welcomes cooperation from all stakeholders toward sustainablechange. We have embedded sustainability into our corporate strategy.

Takeaccountability

About environment and society

Better every dayYourmedicines,
oursolutions.
Moving toa healthierworld.

By setting our ambitious environmental targets, we aim to reduce our impact on theenvironment. Additionally, we have improved our social program to maximize our positive
contribution to the societies in which we operate.

“We have embedded sustainability into our corporate strategy”
5

INTRODUCTION & STRATEGY / Our PurposeOur

HERITAGE
Our legacy – dating back more than 100 years
Building on more than a century of heritage, we strive for customer satisfaction from formulation
development to excipient delivery, by leading in quality and global supply. We are focused on
supporting our customers toward reaching their time-to-market goals.

6

INTRODUCTION & STRATEGY / Our Heritage

When it comes to health, patients and consumers deserve nothing but the best solutions.
We offer a broad portfolio of more than 200 premium products. Globally, over 80 percent
of global dry powder inhalers and almost one of every two lactose excipient tablets use DFE
Pharma products. Below, you can see our history.

DFE Pharma:

2023 IN NUMBERS

5000 Customers7

450

25%/75%38

Employees

Female-Male Ratio(worldwide)

Nationalities

More thanMore than

100 years ofexperience

200 excipients

Exporting to morethan 100 countries

2 shareholders

75Center of ExcellenceRoyal Friesland Campina &CVC Capital Partners

Sales Offices

Manufacturing
Sites“Closer to the Formulator”

INTRODUCTION & STRATEGY / DFE Pharma in 2023

Our approach to materiality assessment
Our materiality assessment enables us to prioritize and properly
manage the ESG risks and opportunities.
Double materiality is a key theme within CSRD. The analysis, guided by the European
Sustainability Reporting Standards (ESRS), does not only consider the impact of DFE
Pharma’s activities on people and the environment (impact materiality) but also thefinancial impact of these topics on DFE Pharma (either positive or negative; financial
materiality).
In 2023, DFE Pharma conducted its first double materiality analysis to provide a solid
starting point in preparation for CSRD. The following six phases were completed
to prioritize the most relevant topics for DFE Pharma.

01

Current state assessment

Desk research is conducted with the aim identifying relevant sustainability
matters for DFE Pharma. This involved analyzing internal documents, international
standards, peers’ materiality assessments, sector trends, and media. The findings wereconsolidated into a longlist, checked against CSRD topics, and led to a shortlist ofsustainability matters.

02 Value chain mapping

The identified relevant sustainability matters were mapped against DFE Pharma’s
value chain to see where each matter has the most impact. Simultaneously, the impact,risk, and opportunity (IRO) register was initiated, to serve as a foundation for stakeholder
engagement.
8

INTRODUCTION & STRATEGY / Our Approach to Materiality Assessment

03 Stakeholder engagement

Internal and external stakeholders were interviewed to qualitatively assess
DFE Pharma’s impacts, risks, and opportunities related to sustainability matters.
Stakeholders were asked to provide input on the IRO register to identify additional
impacts, opportunities, and risks, as well as validate the write-up of the interview.

04

Impact, risk & opportunity review

05

Topic prioritization

06

Validation

The IROs identified in previous phases were consolidated, particularly
integrating the insights from the stakeholder interviews into the initial IRO register.
Potential duplicates were assessed and merged where needed, resulting in acomprehensive final IRO register.

Internal stakeholders individually scored IROs based on scale, scope,
irremediability (together forming severity), likelihood for impact materiality, andthe size of potential financial effects and likelihood for financial materiality. The
results lead to the final register of scored IROs.

The results of the double materiality assessment were presented to DFE
Pharma’s Leadership Team. The Leadership Team validated the material topics,
marking the conclusion of the double materiality assessment.

Outlook for our materiality approach
We aim to review and update our materiality assessment at least every three years.

Materiality Results
The results of our materiality assessment arepresented below. These topics were establishedbased on the process described in the previous
page. The results of this materiality assessment
were used to shape DFE Pharma's ESG strategy.
According to the 2023 materiality analysis,
the material topics thar are the most important are
greenhouse gas emissions, biodiversity, productcircularity, employee safety, health and wellbeing,business conduct and transparency, animal welfare
and health, and data and information security.
Those topics were considered more material
than responsible water use, product, and patient
safety, which were considered material in theprevious 2022 limited materiality analysis.

Materiality Analysis
Greenhouse gas emissions
Biodiversity
Product circularity (waste, packaging, sourcing)
Employee safety, health, and wellbeing
Diversity, equity, and inclusion
Business conduct and transparency
Animal welfare and health
Data and information security
Talent attraction, engagement and retention
Fair labour practices in the value chain
Access & affordability of medicines
Pollution
Responsible water use
Product and patient safety
Innovation and technology
Community engagement

9

INTRODUCTION & STRATEGY / Materiality Results

ImpactMateriality

Financial
Materiality

Strategic Framework: Three Focus Areas‘Sustainable excipients’
Focusing on the environmental impact of our lactose andplant-based excipients
Covering materiality topics: Greenhouse gas emissions andproduct circularity

AMBITIONS

We supply the most sustainable lactose and plantbased excipients‘Healthy, biodiverse world’
Focusing on the impact of our sourced inputs on biodiversity,
animal welfare and health
Covering materiality topics:
Biodiversity and Animal welfare & health‘Positive, inclusive and safe culture’
Focusing on the impact of its people within
DFE Pharma’s internal organization
Covering materiality topics: Safety, health &wellbeing, Diversity, equity and inclusion
Fundamental Themes:
Business conduct & transparency and Data & information security
10

INTRODUCTION & STRATEGY / Sustainability strategy

We collaborate with our suppliers to foster nature
positive sourcing

We attract and retain diverse talent and create a way
of working where employees feel safe, valued andcontribute to successYour medicines, our solutions.
Moving to a healthier world.

Governance of ESG at DFE Pharma
Governance Board

Embedding ESG into our corporate strategy(Guidance and Supervision)

It is of key importance for us to ensure that our ESG strategy is sufficiently
linked and embedded in our overall corporate strategy. Our goal todevelop and supply sustainable products confirms this.

Leadership Team
(Accountable)

Governance of the ESG Strategy
The Leadership Team defines the ESG strategy and relevant targets
in consultation with the Governance Board.

ESG Steering Team(Consulted & Informed)

The ESG Steering Team shapes the ESG Strategy. This team also tracks
progress and ensures that the ESG actions and initiatives comply with theoverall corporate strategy.

ESG Team(ESG Oversight & Reporting)

The ESG Team facilitates the overall ESG Program, engages with different
stakeholders, and executes the materiality assessments. The team also
ensures coordination across different departments and supports ESGrelated actions and initiatives.
The ownership and responsibility for driving action on ESG are shared by
the different departments.

11

INTRODUCTION & STRATEGY / Governance of ESG

Sustainable excipients

Healthy and biodiverse world

Positive, inclusive and safe culture

Category

Owner

Category

Owner

Category

Owner

ClimateProduct circularity
Waste
Water
Packaging
Sustainable sourcing

Operations
ESG
Operations
Operations
Technology
Procurement

Biodiversity
Animal health and welfare

ESG
ESG

SafetyHealth & Wellbeing
Diversity, Equity & Inclusion
Human rights
Business Ethics
Data and Information Security
ESG Reporting & Disclosure

Operations
HR
HR
HR
Legal
DigitalESGDFE Pharma takes
responsibility for delivering
its solutions and products inan environmentally friendly
manner.
Decarbonization of our operations,
reduction of waste, water conservation,and sustainable packaging all contributeto our efforts to limit our impact on theenvironment.

Reduction ofGreenhouse gas
emission
according to SBTi target

Fully recyclable
packaging downstream by
2030

Zero waste tolandfill by 2025

50% freshwater
reduction, 2025
compared to 2020

Our Contribution to Climate
We believe in climate science

Our value chain carbon footprint.
Below, we describe DFE Pharma in the value chain.

Climate change is one of the biggest challenges the planet faces. We believe all businesses
must actively create solutions and actions to address change. For future generations, weneed to act now to contribute to a future where global temperature increase is limited to
1.5°C.
The Science-Based Targets initiative (SBTi) is the global standard for corporate emissions
target setting. Our modelling shows that the targets in this roadmap are aligned with the
SBTi’s requirements for 1.5˚C aligned targets* and we are following the newly introduced
Forest Land and Agriculture Guidance (FLAG)This means we adjusted our 2030 Scope 1, 2, and 3 target ambition to a 42% absolute
reduction from a FY21 base year. For our Scope 3 FLAG, we have set the target of a 30.3%
absolute reduction.
Aligning our reduction targets to SBTi and SBTi FLAG means we are consistent with thescience to limit the global temperature increase to 1.5˚C emissions from generations ofpurchased electricity

Our roadmap will adapt and evolve.
We understand that climate science is complex and constantly evolving, and we expect thatexpert guidance and measurement methodologies will evolve, too. We will continue to workwith experts and follow industry best practices in evolving our action plans as needed. We
are therefore committed to treating our Climate Roadmap as a living document. In 2024 wewill roll out our product carbon footprint based on life cycle assessment (LCA)

Our total emission in 2023 are 964 kTons CO2 equivalent. The majority (98%) of ouremissions are in scope 3.
*We have committed and submitted our near-term company-wide emission targets in line with climate science
with the SBTi. We are currently in the process of validating our Scope 1 & 2 & 3 and Scope 3 FLAG targets to SBTi
for approval.

13

ENVIRONMENT / Greenhouse Gas Emissions / Our Contribution to Climate

Greenhouse Gas Emissions – Scope 1 and 2 Targets
DFE Pharma is committed to a 42% reduction of GHG
emissions by 2030 within its Scope 1 and Scope 2 versus
the 2021 baseline year

In 2023 we focused on green electricity and creating technical roadmaps for our
production locations to reduce energy consumption through energy efficiency andreplace energy sources with sustainable alternatives

16

Emissions (kTons CO2eq)

As part of our efforts to increase transparency and align with international standards forreporting and target setting, we re-evaluated our 2030 targets. While it does not change
our objectives to become net zero, the near-term targets in line with SBTi definitions are
set to a 42% reduction on our scope 1 and 2 in 2030 from our 2021 base year. This is inline with the Paris Agreement to limit the planet’s warming to less than 1.5°C.

Scope 1 partitioning
Scope 1 and Scope 2 Emissions
14
12
10
8
6
4
2
Scope 1

2021
Scope 2

2022

2023

Year

2030
targetGas
Fuel Oil
Fleet - Petrol

DieselFleet - Diesel
Fleet - Hybrid

A closer look at 2023:
The following major milestones were completed:● Creation and validation of the 2030 Carbon reduction roadmap● Our site in NH scope 2 changed to 100% green energy● In 2023, DFE Pharma submitted its near-term targets to the Science-Based Target
initiative (SBTi)

In 2024 and onwards
In 2024, DFE Pharma will start to operate a biomass boiler for its Cuddalore production
location and will start implementation of our technical roadmaps for other production
sites

14

ENVIRONMENT / Greenhouse Gas Emissions / Scopes 1 and 2

Investments into improvement
In 2023, we installed a biomass boiler at our production site in Cuddalore (India). This biomass
boiler will replace the fossil boiler, reducing our greenhouse emissions by at least 20%. We willcontinue investing in projects within our operations toward greenhouse gas reduction.
The other focus of our program has been to get green energy into our production sites. All our
European sites have been running on green electricity. For our India and NZ operations options areunder evaluation to transfer them as soon as possible within the existing local infrastructure andenergy rules.

Our Approach to Scope 1 and 2 Reduction
DFE Pharma aims to reduce 42% by 2030 for Scope 1 and Scope 2. Below,

Annual Total Energy

we describe our approach toward this commitment.

Energy (Megajoules)

250

How do we aim to achieve the objective?

200
Non-Renewable

150

Renewable

100

Two main drivers for Scope 1 and Scope 2 will be which energy (source) we use and how
we use it. This means that we will have to reduce the fossil carbon emissions byincreasing energy efficiency and switching to renewable sources.

50
0

2020

2021

2022

2023

Year

Efficiency

Optimizing manufacturing processes and utilities forenergy efficiency by e.g. reducing energy consumption
during stand stills and installing energy monitoring
systems. Also,, high energy-consuming operations, likedistillation columns are evaluated for efficiency.

Annual Energy Intensity (EEI)
Energy Intensity

12

-11%

10

Energy Intensity = total energy
consumed in gigajoules divided
by the total volume produced inmetric tons.

8
6
4

Current Status

2
0
2020

2021

2022

2023

Year

15

Sustainablesources

Transition away from fossil-based energy and raw
materials sources to more sustainable alternatives, e.g. thebiomass boiler in Cuddalore as mentioned on the previous
page and/or electrification of processes and installing
heatpumps

ENVIRONMENT / Our approach to scope 1 and 2 reduction

Through our World Class Operations Management (WCOM) and continuous
improvement program, we have managed to execute a diverse number of projects whichenabled us to reduce our energy consumption. In 2023, we achieved an 11% reduction in
our energy intensity compared to 2020 and a 6% reduction versus last year.

Greenhouse Gas Emissions of Scope 3
DFE Pharma aims for a resp. 42% and 30.3% absolute reductionof its Scope 3 and Scope 3 FLAG emissions by 2030 compared to2021
As part of our efforts to increase the accuracy of data and targets(as mentioned under scope 1 and scope 2) also, our scope 3 data
was brought in line with SBTi requirements.

-42%
Scope 3This means also new baseline and target were also defined for FLAG (Forest, Land andAgriculture ) emissions are emissions related to agriculture,land-use change and land management, including forestry.
FLAG-related emissions of DFE Pharma are more than 20%-30,3%
of overall emissions across scopes 1,2 and 3 and hence
Scope 3reporting those separately as per SBTi requirement.

FLAG

A closer look at 2023:

Emissions (kTons CO2eq)

Scope 3 Emissions
1.200
1.000
800
600

ENVIRONMENT / Greenhouse Gas Emissions / Scope 3

932

981

952

2020

2021

2022

2023

200
-

The scope 3 carbon footprint can be divided into 2 main categories: FLAG and Purchased
goods and services. From the purchased goods and services, the majority of the emissions
are related to the fossil fuels used to produce the FLAG products. Collaboration with the
suppliers in those categories is for DFE Pharma of utmost importance to realize the emission
reduction ambitions.
6%
FLAG products(fossil)
other

24%
94%
6%

In 2024 and onwards

16

990

Year

DFE Pharma made progress in the collection of important data for a more accurate
Scope 3 calculation. The following milestones were completed:● Recalculation of Scope 3 emissions using supplier emission factors● Calculated the remainder of Scope 3 with reference to the Greenhouse Gas Protocol
guidelines● Setting SBTi near-term targets in line with 1,5°C for Scope 3 and Scope 3 FLAG
emissions
In 2024, the targets of the Science-Based Target Initiative (SBTI) will be validated.
DFE Pharma will further collaborate with its suppliers toward the reduction of Scope 3
emissions.

400

70%

The other categories is including for its majority(>85%) of emissions end-of-life treatment for soldproducts,
upstream
anddownstream
transportation and distribution.

FLAG
Purchased goods and services
OthersSustainable Sourcing to Achieve Scope 3 Targets
Engagement with suppliers.

Addressing GHG emissions through action.

Ensuring the achievement of our sustainability goals heavily
relies on our connection with suppliers. We diligently assess
supplier performance and manage potential risks, actively
engage in evaluations and audits. These efforts are integral
to meeting both quality and sustainability standards,
supported by established procedural frameworks. All our
critical raw material suppliers have committed to or
validated SBTi targets. Together we are on the joint mission
to positively impact the climate.

Interacting with suppliers, especially concerning raw materials,
plays a pivotal role in mitigating our Scope 3 GHG emissions. We
have collaborated with various supplier categories to gather
carbon data.

Avg. Rating

Category

2023 vs 2022

3

Raw material

67% improvement

2

Packaging

15% improvement

Intermediate andfinished product94% improvement

1
Key

Supplier Segment
Average Rating 2022
Average Rating 2023

Our scope 3 strategy:
We have divided our suppliers into various categories toensure action plans for reduction:
1.
Supplier relationship management and engagement
2.
Product specification optimization
3.
Partner with suppliers to actively reduce emissions level

17

ENVIRONMENT/ Sustainable Sourcing

Continuous focus
onSupplier
Management

Data Granularity **4ManagedSupplier Segmentation

This collaborative effort aims to enhance the accuracy of ourlifecycle assessment and facilitates actions geared towards
achieving our Scope 3 reduction goals

Supplier Performance*

Transactional

Approach to Responsible Sourcing*Supplier performance = overall annual performance of our suppliers (bynumbers) based on four criteria: sustainability, product quality, cost,delivery, and responsiveness. The average score on sustainability was
3,0 in 2023**Data granularity represents the percentage of articles in the categorythat is based on actual supplier data. In 2022, the data was literaturebased. The improvement is visualized in the table

Looking Forward
As a supplementary measure to existing conduct policies, wewill also aim to include a Responsible Sourcing Policy (RSP)
which will further reinforce guiding principles related to ESG
for our Business Partners. The granularity of our data will befurther increased.
Target: By 2025 RSP signed by critical suppliers
By 2026 RSP signed by 90% spend of DFE

Sustainable Packaging
Fully recyclable packaging by 2030 downstream.
The aim is to ensure that all packaging materials used by DFE Pharma are
fully reusable or recyclable downstream while complying with the quality
and legislative requirements within the market. Close collaboration isrequired with our suppliers and customers to achieve this ambition.

Packaging material (metric tons)
4.500

Packaging (in metric tons)

More sustainable packaging has
become increasingly important
within our value chain. Our
customers and legislative bodies
are requesting more sustainable
packaging toward 2030. DFE
Pharma recognizes sustainable
packaging as one of the mostimportant areas for the reductionof climate impact. Therefore, we
aim for fully recyclable packaging
downstream by 2030.

4.000
3.500
3.000

Other

2.500

Wood

2.000

Metal

1.500
1.000

Paper

500

Plastic

2020

2021

2022

Year

18

ENVIRONMENT / Sustainable Packaging

2023

In 2023, we executed product life
cycle assessments.
This assessment was executed in accordance with
ISO14040:2006 and executed for DFE Pharma's entire
portfolio. The carbon emission equivalent of eachproduct and packaging material is available. With thisinformation, we can identify the hotspots within the
products’ lifecycle. The scope of the assessment was
all upstream activities in our operations until our
distribution warehouses.
Gathering this information for all our products enables
us to provide accurate data to our customers, thereby
increasing the emissions transparency of the entire
value chain. Additionally, we will be able to track ourprogress toward fully recyclable packaging by 2030.

Sustainable Packaging Roadmap
Responsible use of materials

Approach to reach our ambition

The aim is that by 2030, all packaging will be designed such that it issuitable for recycling or reuse downstream. Together with our
stakeholders, we work to ensure that we reach this goal while fullycomplying with the applicable legislation.

Collaboration with our suppliers and customers is key to reaching fully
recyclable packaging. This cooperation will also enable our different
customers to attain their packaging goals.

Up to 90% of our packaging already enables
convenient separation of materials.

Key Achievements in 2023●

One of the main prerequisites for recycling packaging is materialsorting. Therefore, packaging designs that fulfil this requirement are
crucial for our goal.
●

Degree of packaging material separation
Separation possible

10%

Separation possible with extra steps

90%

19

ENVIRONMENT / Sustainable Packaging Roadmap●●

Recycle: An inventory is made of all primary, secondary andtertiary packaging materials used by DFE Pharma. The list isenriched with an indication of the current recyclability possibilityof each packaging material. This allows us to prioritize
the replacement of those packaging materials that are notrecyclable.
Recycle: Setup of return logistics of used drums in Western
Europe- allowing recycling of used drums into the manufacturing
chain of new drums by our drum supplier.
Recycle: Flexible Intermediate Bulk Containers (FIBCs) used ininter- company shipments will be offered for recycling by the
supplier. About 60mt of empty big bags will be recycled this way.
Reduce: The LCA enables us to change packaging material
towards more sustainable packaging. We used this LCA
information to optimize and change primary packaging
specification, reducing the sustainability impact will be visible in
the results of 2024.

RECYCLEREUSE
REDUCEWater and Waste Roadmap
Building on 2023 roadmaps were made for each DFE production
site on water consumption and disposal. Also, for waste
overviews were made on various streams and a monthly
reporting system was drafted.
Several waste streams were further segregated and/or changed
to improve recyclability. Also weighing of separate streams was
initiated to improve visibility.

20,00
15,00
10,00

20

5,00
-

2020

2021

2022

2023

Year

ENVIRONMENT / Water and Waste

Waste Water Intensity (m3 /ton)Water Intensity (m3 / tons)

25,00

In 2024, all sites will perform a pre-assessment on ‘zero waste tolandfill’ readiness and action plan for achieving this in 2025. Next tothat improvement and reduction initiatives will continue.

Alignment with university to analyze
hazardous waste and option to reduce /or remove the formation of this type ofwaste in our processes

Packaging material analyzed on
separability

2023 Total Waste in Metric Tons

Waste water intensity(m3/ton)

30,00

In 2023 an inventory of all waste streams was implemented including
quantification of all waste. Also, destination of waste streams wasmade clear. This enables a classification of all waste streams towards
our ‘zero waste to landfill’ objective. Major part of our waste stream
are already being recycled or reused.

27.000 l of freshwater reduction at
Cuddalore (India) due to reuse andreduction of process water.

In 2024, action plans for the key water consuming steps will bedefined that are identified in the water management plans. Also,an assessment will be made for readiness for ‘zero waste tolandfill’ (see next box)

Water Intensity (m3/ton)Zero waste to landfill by 2025

Project Highlights

By 2025, we aim for a 50% reduction of ourfreshwater intensity compared to 2020.

sludge13

Total non hazardous
10

5 29

Metal

49

25
20
15
10
5
0

Mixed waste
Organic

161

Other

Non-hazardous
411

629
2020

2021

2022

Year

2023

Hazardous

Non-hazardous

Paper
Plastic
Wood

DFE Pharma is focusing on theimpact of our sourced materials
on a healthy and biodiverse world
by collaborating with our
suppliers

Biodiversity

Animal healthand welfare

Biodiversity and Animal Health and Welfare
In
2023,
we
completedacomprehensive review of our material
topics, following the CSRD requirementof double materiality, which reflects theevolution of many sustainability issues
across our industry. We have seen
increasing engagement on topics likebiodiversity and animal health andwelfare, and those have resulted inmost material topics for DFE Pharma.

“We collaborate with our supplierstofosternature-positive
sourcing”.

22

Biodiversity

Animal health and welfare

The preservation of biodiversity is an increasingly material
topic for us and our stakeholders. We have the potential toimpact biodiversity by the materials we source. Better
nature by improving biodiversity, this can be done throughnature preservation, the fight against deforestation, andconversation.

Cows that are healthy and well-cared for live longer, need lessmedication and produce more and more sustainable milk.
Animal welfare and sustainability go hand in hand. That’s why
we consider it important to improve the health and welfare of
our suppliers members’ cows.

For our plant-based excipients we source natural products
like wood fibers, potato and maize starch, cotton, cassava
and sugar beet that all have an impact on biodiversity.
Dairy farmers can have a net positive impact on nature in
the future examples of herb-rich grasslands, cows grazing in
the pasture are examples of strengthening biodiversity.
Regenerative agriculture is emerging. It concerns a way offarming where climate and biodiversity targets cometogether and where the soil is central.
We are and will be engaging our suppliers to drive moresustainable practices.

ENVIRONMENT / Biodiversity and Animal Health and Welfare

2024 and beyond
Measuring biodiversity is not easy. In 2024 we’ll start collecting
information on the biodiversity programmes at our suppliers
and we’ll monitor the suppliers that comply with biodiversityrelated regulations, standards or agreements. In addition, an
assessment will be conducted to determine how to set goals
designed to strengthen biodiversity throughout our entire value
chain.
We will engage with our suppliers to understand the programson animal health and welfare better and monitor the suppliers
adhering to recognized animal welfare certifications or
standards.

At DFE Pharma, we attract and retain diverse
talents and create a way of working where
employees feel safe, valued and contributeto successWe believe in zero accidents and take care of the health andwellbeing of our employees. We value and encourage the wide
diversity of our teams all over the world, and we strive together tomake a positive impact on the communities we work and live in.

Safety, health andwellbeing

Diversity, equity andinclusion

Employee Safety“Nothing is worth an incident” is the slogan used to underline our commitment tosafety and to justify all efforts needed to reduce the risk of incidents. We believethat all accidents can and must be avoided and work diligently to create a work
environment with the lowest risks possible
Our extensive Safety Program includes risk assessments, policies,
procedures, and training for employees. Additionally, a large
number of observation rounds are being conducted, both byoperators and managers to evaluate and discuss the safety
situation at the spot. Toolkits are used to (re)train all
employees and open actions from risk assessment arerecorded and trended to ensure follow-up.

In 2023 all DFE Pharma’s production locations are ISO 9001 and ISO
14001 certified.
In 2022 the initiative was launched to get all our sites certified for both ISO 9001 and ISO
14001. The management systems for both norms ensure production and products meet thehighest standards for quality and environment. In 2023, all of the production sites passed
their qualification audits for their ISO 14001 certification passing anothermilestone on our journey to make our sites better. In DFE Pharma webelieve that good safety is good business. These certificates
underline that belief.

DFE Pharma regularly measures safety performance throughkey performance indicators like TRFR rate (see graph below). Also, safety
behaviours assessments were conducted by auditors trained in the
Organizational Behavior Management methodology. The assessments
showed high employee engagement in safety. Something we are of course
proud of.

TRFR

Total Recordable Frequency Rate
TRFR = number of incidents
per 200.000 hours worked
on DFE Pharma locations(owned and supervised
personnel)

1,00
0,80
0,60
0,40
0,20
0,00
2020

2021

2022

Year

24

SOCIAL / Employee Safety

2023

Priorities for 2024
For 2024, we will continue improvements in our Safety Program. Primary focus will be on executionof our Behaviour Based Safety Program to take our safety performance to the next level. Part of thisprogram will be the role out of Organizational Behaviour Management to encourage strong feedback
loops and collective building of a safe work environment. Additionally, we will expand our machinesafety assessment and implement follow-up actions as required.

Employee Health & Wellbeing
It is also our responsibility to safeguard employees against workrelated illnesses. At DFE Pharma, we take steps to assist our employees byoffering different health and well-being activities, such as workshops on stress
reduction, and regular medical check-ups. We encourage our employees toimplement preventive health actions into their daily routines. Via different
channels like town hall, meetings, or our News Flash, we continuously remind
our employees of the importance of their health.
Since 2023, every location has had the objective of organizing at least one annual
health and wellbeing activity.

Health check-ups and vaccination during 2023
To better protect the health and wellbeing of our employees, in 2023 we have organizedglobally over 10 different activities like health check-ups and vaccination appointments.

Activities 2023
Influenza Vaccination​s in Germany

Periodic Medical Check follow up in
the Netherlands

Shiatsu session in Brazil

Health and working in shifts activity in
the Netherlands

Step challenge in India

Health check in New ZealandErgonomic check in Germany and theNetherlands

Mindfulness training in Japan

25

SOCIAL / Employee Health and Wellbeing“Promoting our employees’
well-being is a key target
for DFE Pharma”

Association and Collective Bargaining
As DFE Pharma, we know that social dialogue is important, and freedom of association andcollective bargaining are fundamental rights that play a crucial role in fostering a fair andproductive workplace environment.
At DFE Pharma 37% of our employees are represented by a Collective Bargaining Agreement.
In Germany and The Netherlands, all employees (61% of the total workforce) are represented
by a Works Council. Besides the Works Councils in Germany, in 2023, the Works Council in The
Netherlands was put in place.
For 2024, all Collective Bargaining Agreements are up for renewal.

Works Council/ Trust Representatives
Location

Number ofRepresentatives

No. of Employees
Represented

Goch

5 Works Council Members

115

Nörten Hardenberg

5 Works Council Members

73

Netherlands

5 Works Council Members

80

Global4 Global Trust Representatives

458

Collective Labor Agreement Representation

26

Germany

59 Employees

India

59 Employees

Netherlands

43 Employees

New Zealand

6 Employees

SOCIAL / Association and Collective Bargaining

Working Conditions
Our people strategy supports the creation of a high-performance and inclusive environment
where the talents and skills of our employees are developed. We believe that all employees
can contribute to sustainability. That is why we implemented our volunteering policy in2023 and as of 2024, we will implement our donations policy, and every employee will havean ESG Objective.

Benefits provided to employees
In 2023, DFE Pharma did an analyses of the benefits of all its global locations. Most benefits
are equally eligible for full-time and part-time employees. The analysis showed that DFE
Pharma offers a lot of additional benefits in addition to governmental support e.g., company
pension, life insurance, travel and accident insurance, disability coverage.

Training
In 2023, DFE Pharma did an analyses of all global registered trainings that had
been conducted. In total, 5.147 training hours were completed by 452 employees. This makes
an average of 11 training hours per year per employee.
For 2024, we want to implement a training tool to be able to register our training evenbetter, as currently, especially at production locations, the information is only available as
hard copies and not digitally.

Performance management
The performance management system was updated with a personal and mandatory ESG
objective to stimulate the contribution of all employees to sustainability in 2023. This will beapplicable from the talent cycle 2024 onwards. In this way we encourage all employees tocontribute to sustainability.

27

SOCIAL / Working Conditions“We supports a high-performance andinclusive environment, where talents andskills of our employees are developed.”Employee Social & Sports Events
At DFE Pharma, we strongly encourage and enable our
employees to have a good work-life balance. Social andsporting events were organized for our employees globally. Apart fromfun, the activities also provide additional opportunities for fostering
teamwork, relationships, and collaboration among different departments.
In 2023, DFE Pharma took part in 73 various social and sports events inglobal locations, such as B2B Run in Germany, Canoe tour in Japan, TopGold in the U.S., as well as organizing events, anniversary celebrations andothers.
Since 2023, every location has had the objective of organizing at least one
annual sport and one social activity.

28

Location

Number of Social & Sport Events 2023

Global3

Brazil

2

China

7

Germany

5

India

35

Netherlands

11

New Zealand

3

USA

4

Singapore

1

Tokyo

2

Grand Total

73

SOCIAL / Employee Social & Sports Events“Participating at sports events gave us an
opportunity to bond as a team outside of work”

Diversity at DFE Pharma
We want to promote diversity within our workforce. DFE Pharma has over 35 nationalities among its
employees. We aspire to extend a corporate culture where diversity and inclusion are integral.
DFE Pharma recognizes the value of having a diverse workforce and creating an inclusive workplace, where everyone feels
valued, respected, and supported. The company believes that Diversity, Equity, and Inclusion (DE&I) initiatives can help
drive innovation, improve decision-making, and ultimately lead to better business outcomes.

DFE Pharma has done in 2023 a diversity analysis on gender and age diversity. The governance bodies within DFE Pharma
consist of the Leadership Team (Chief Executive Officer, Chief Finance Officer, Chief Operations Officer, Vice President Sales,
Global Human Resource Director, and Global Business Director). One person is female (17%) and five males (83%). One LT
member is below 50 years, and the rest are above 50 years. The LT group consists of four Dutch, one Finn, and one Briton.
Long-term goal is to maintain a balance of diversity regarding age, nationality, and gender within the Leadership Team.
The minimal 0.6% difference in Relative Salary Position (RSP) between genders globally reflects our dedication to fostering
diversity and ensuring fair compensation practices throughout our organization.

Leadership Team Gender
Diversity 2023

29

SOCIAL / Diversity

Global Gender Diversity
2023

Pay Gap – Comparison of
Average RSPs

Our plan for the DE&I Program
As a global company with customers worldwide, we will
pursue a holistic diversity, equity, and inclusion approach thatencompasses key topics for our stakeholders and us. Our DE&I
program intends to promote a fair and inclusive society
further. For 2023, our focus is on gender diversity and thepay gap. From 2024 onwards, we will further strengthen our
DE&I strategy. DFE Pharma will ensure that all relevant
stakeholders are included in the refinement and launch of our
DE&I program.

DFE Pharma and our Communities
DFE Pharma recognizes its responsibility to contribute DFE Pharma’s role in our science and contribution to
open science
positively to the communities around it.
To go beyond our core daily business and contribute to thecommunities we work in, we organized different activities in 2023.
DFE Pharma made several different donations, such as hospital
equipment donated in India and New Zealand, and financial donations
to the children's home in Germany.

In 2023, we implemented our volunteer policy, and in
2024, we will launch our donations policy. All employees
can volunteer on teams for up to eight hours annually during theirwork schedule. This is a step toward increasing our community impact
by giving our employees flexible choices of organizations where theycan volunteer and time.
DFE Pharma will collaborate with non-profit organizations in the
different regions where we operate to maximize the impact within ourcommunities.

3

3

7

We believe that open science has the power to drive societal progress
and advance the United Nations (UN) Sustainable Development Goals(SDGs). Making knowledge freely accessible to anyone, anywhere canplay a fundamental role in achieving a sustainable and equitable
future.
DFE Pharma has published 2 articles that were linked to the UN SDGs,
helping to tackle some of the world’s greatest challenges​:● Evaluation of lactose-based 3D powder bed printed
pharmaceutical drug product tablets; Korinde A. van den Heuvel,
Myrthe T.W. de Wit, Bastiaan H.J. Dickhoff, Powder Technology,
Volume 390, 2021, Pages 97-102● Impact of excipients on batch and continuous powder blending;
Maarten Jaspers, Myrthe T.W. de Wit, Sri Sharath Kulkarni,
Bernhard Meir, Pauline H.M. Janssen, Mara M.W. van Haandel,
Bastiaan H.J. Dickhoff, Powder Technology, Volume 384, 2021,
Pages 195-199

Community Activities in 2023
Environment Clean Up
Equipment Donations
Financial Donations

In 2023, we made donations of a value sum of more than 50k euros.
*
https://doi.org/10.1016/j.powtec.2021.05.050

30

SOCIAL / Community Engagement“We contribute to ourcommunities in as
many ways as wecan!”Labor and Human Rights
Human rights policy
In 2019 the new human rights policy has been adopted. With thispolicy, DFE Pharma respects internationally recognised humanrights throughout the value chain, in line with the UN guiding
principles on Business and Human Rights and the OECD guidelines
for Multinational enterprises. The Policy includes nine areas offocus, based on the International Bill of Human Rights and the ILO
Declaration on Fundamental Principles and Rights at Work.
•

Access to water and sanitation facilities•

Right to life and safety•

Freedom of association and collective bargaining•

Child labour•

Forced labour•

Non-discrimination and equality•

Right to privacy•

Environmental impact of activities•

Access to remedy

31

SOCIAL / Labor and Human Rights

Risk for incidents of child labor
DFE Pharma has 0% child labor and young workers
globally within the employed population (direct andindirect). The long-term goal is to include suppliers in thismeasurement to become leaders by example and protect
children's rights. We regularly check local IDs to make sureour 0% rule is being followed.
DFE Pharma is also aware of high-risk locations in Brazil andIndia. Brazil has no manufacturing facilities and only
employees highly experienced personnel. For India per law,
it is an offense to engage child labor in any work. The Indian
team highlights the same to the service providers during thevendor selection process. Workers engaged under agency
rolls / outsourced activities need to submit their EPF / ESIC
(provident fund/insurance) credentials before they enterfactory premises.
Check 1: No individual will get an EPF / ESIC membershipnumber when they are less than 18 years old. Check 2: If acontractor does not submit this membership number for
their employee, then entry to the factory premises will not
be permitted. HR will verify the provided ESIC / EPF numberin the EPF / ESIC government portal to ensure authenticity.
This process ensures that no child labor is engaged in any
work at our factory premises.

Risk for forced or compulsory labor
DFE Pharma has no forced or compulsory labor
globally within the employed population (direct andindirect). Within DFE Pharma, we treat the local laws andour internal Compass, including human rights, with respect.
Our long-term goal is to include suppliers in this analysis toensure we do not support forced or compulsory labor.
DFE Pharma follows the Compass and Speak-up procedure.
If we have an incident reported, we will take immediate
action to analyze the case and escalate it to the leadershipteam, as this would be a breach of our own business policy.

In 2024 and 2025,
All DFE locations will be part of the Human Rights Due
Diligence process, including a Human Right Risk Assessment
for all locations, a combined digital and on-site assessment.

We believe in respectful, honest
business relation and in showing
deference for the world in which we
operate.
Creating value while maintaining the confidence of
stakeholders is the foundation of our reputation, ourstory and our future success.

Business conduct &transparency

Data & information security​

Business Conduct
To be a successful company, it is critical that DFE Pharma
maintains the trust and confidence of all its stakeholders
over decades.

Training and case discussions are crucial foradvancing awareness among our employees.
In 2023 three training courses were given to our employees.
With these dilemma discussions we encourage employee tothink on ethical principles.

We conduct our business according to ourCompass Principles: behaving with integrity,
Training Details
respect, and transparency.
Our Compass Principles guide every employee on the rightethical behavior. During onboarding, every new employee
is required to sign and agree to the principles described in
our Compass. We train employees every year on two
underlying policies that cover a range of importantbusiness conduct topics, such as Doing Honest Business,
Fair Competition, Avoiding Conflict of Interest, Data
Protection and Trade Sanctions. The purpose ofthis training is to refresh the Compass Principles and createawareness in the field of compliance through casediscussions.

33

GOVERNANCE / Business Conduct

Training on preventing theft and fraud.

Training on Conflict of Interest.

Refresher on doing honest business and gift register.

A culture of integrity needs an open andtransparent environment. Our Speak Up
Procedure encourages that.
Our Speak Procedure applies and is available to all our workforce
and business partners. It describes when and how to speak up,
including protecting identity and guaranteeing confidentiality.
The Integrity Committee oversees the processes of thisprocedure.

All our suppliers and service providers are obliged
to adhere to our Code of Conduct for Business
Partners. DFE Pharma contributes to the value chain throughselectionandcollaboration
withtrustworthy
partners. Therefore, we require our suppliers to sign the Code of
Conduct. In 2023 100% of our critical suppliers signed the code of
conduct.

Transparency: ESG Disclosure and ReportingDFE Pharma discloses its ESG targets andprogress regularly.
Aligned with our transparency targets, we voluntarily releasedifferent information on our ESG journey. This enables
stakeholders to gather the required information conveniently.
Our policies outline the disclosure frequency, target audience,and information.
Once a year, we publish an ESG Report which describes theperformance of the previous year.

DFE Pharma is in the top 5% of our sector*.

Standards

EcoVadis has grown to become the world’s largest and most trusted
provider of business sustainability ratings. Since 2015, DFE Pharma
has been reporting its sustainability performance to EcoVadis. DFE
Pharma executes an EcoVadis assessment annually to track the
progress of our ESG journey. In 2022, we were awarded a Bronze
medal. Our sustainability efforts have resulted in a Silver medal for2023. We will use our best efforts to achieve the EcoVadis Gold
medal. Our next assessment will be published in 2024.

Our greenhouse gas emission numbers are calculated
in accordance with the Greenhouse Gas Protocol.

* EcoVadis ISIC Category 21: Manufacture of basic pharmaceutical products and pharmaceutical preparations

34

GOVERNANCE / ESG Disclosure and Reporting

Our ESG report is created with reference to the Global
Reporting Initiative (GRI).

Data and Information Security
Strong data ethics and cybersecurity
are essential for us.
As most business operations are increasingly
dependent on data and digital technologies, we
implement corresponding high data ethics andsecurity. Keeping our data and that of our
stakeholders safe and secure is critical.
The Cybersecurity Awareness Program launched
2022, continued focusing on creating employee
awareness and training, securing our digital
infrastructure and cooperating with stakeholders in
the area of cybersecurity.
To assess the maturity level of the IT security, we
have executed a penetration test in a selected area ofour business. Actions have been taken to reduce andmitigate the identified risks. This process will become
an integral part of our Cyber Security Risk
management.

35

GOVERNANCE / Data and Information Security

We encourage our employees to takeresponsibility for their role in keeping DFE
Pharma secure.
E-learning and phishing tests are executed regularly tocreate awareness. We hosted a hack talk during which
an individual shared his experience during a ransomware
attack to inform employees of the potential impact ofsuch an attack. We intend to anchor cybersecurity in ourcompany’s DNA permanently.

Stakeholder Cooperation in Cybersecurity
We share and receive data from different external
partners regularly. DFE Pharma joins forces with its
stakeholders to ensure that all data are kept safe. In
2023, we started to formalize our requirements withregards to IT management, one of them being IT suppliermanagement. The goal is to create an integrated IT
management system to ensure continuous service andsecurity.

Data security
Our workforce is regularly trained on our Privacy Policy and how tohandle data. This ensures all information is kept secure and that wecomply with legislation such as the General Data Protection
Regulation (GDPR). All our stakeholders are encouraged to send andreceive files only via encryption services.
DFE Pharma also has Local Privacy Officers (LPOs) who areresponsible for ensuring that all data processing guidelines arefollowed as required.

Cybersecurity in 2024
Next to the awareness campaigns we will continue assessing thematurity level of our IT system landscape by executing penetration
tests in relevant parts of the business.
DFE Pharma has appointed two Cybersecurity Ambassadors tointensify awareness within the company.

ESG Performance Data

GRI Table

Glossary

Explanation of the Material Topics
#

Topic

Definitions

#

Topic

Definitions

1

Greenhouse gas emissions

•
•
•
•
•

4

Biodiveristy

•
•
•
•
•

2

Pollution• Pollution of air (Air emissions otherthan GHGs)• Pollution of water• Pollution of soil
• Pollution of living organisms andfood resources• Substances of concern• Substances of very high concern• Pollution of air, water and soil in the
supply chain

Land-use change
Direct exploitation of biodiversity
Impact on ecosystems
Ecosystem and resource dependency
Natural habitat damage resulting
from operations and in the supply
chain

5

Product circularity (waste,
packaging, sourcing)

•
•
•
•
•
•

Waste reduction, reuse and recycling
Materials with a lower impact
Sustainable packaging
Circular systems
Sourcing raw materials (e.g., lactose)
Sustainable product/processdevelopment/innovation

3

37

Responsible water use

Climate change mitigation
Scope 1 emissions
Scope 2 emissions
Scope 3 emissions
Energy (efficiency)• Water management (consumption,
withdrawal and discharges) in own
operations and supply chain• Water efficiency• Water discharges in the oceans fromown operations

APPENDIX / Explanation of the Material Topics

Explanation of the Material Topics
#

Topic

Definitions

#

Topic

Definitions

6

Employee safety, health andwellbeing•

8

Diversity, Equity & Inclusion

•

•

•

7

38

Talent attraction, engagement
and retention

•
•
•
•
•
•

Working conditions of own
employees (Secure employment /Working time / Adequate wages /Social dialogue / Freedom of
association, the existence of works
councils and the information,
consultation and participationrights of workers / Collective
bargaining, including rate ofworkers covered by collective
agreements / Work-life balance /Stress reduction)
Health and safety of own
employees (health check-ups &vaccination / safety & healthmeasures / avoiding accidents)
Work-related rights for own
workforce: child labour; forced
labourTraining (re-skilling and up-skilling)
Education
Employer branding
Internal growth opportunities
People engagement
People and talent management

APPENDIX / Explanation of the Material Topics

•
•

•
9

Fair labour practices in value
chain

•
•

•

Offering equal treatment andopportunities for all
Diverse workforce
Inclusive work environment (e.g.
measures against
discrimination/measures against
violence and harassment in theworkplace )Gender equality and equal pay forwork of equal value
Work-related rights for the value
chain: child labour; forced labour
Working conditions of workers in
the value chain: (Secure
employment / Working time /Adequate wages / Social dialogue /Freedom of association, theexistence of works councils /Collective bargaining / Work-lifebalance / Health and Safety /Gender equality and equal pay for
equal work/ Measures against
aggression and harassment in theworkplace
Ethics in the value chain

Explanation of the Material Topics
#

Topic

Definitions

#

Topic

Definitions

10

Product & patient safety

•
•

13

Business conduct andtransparency

•
•
•
•
•

•
•
•
11

Access & affordability of
medicines

•
•
•

12

Community engagement••

HygieneHealth and safety across the life
cycle of the productCustomer health and safety
Regulations and voluntary codes
Product excellence and quality
Social inclusion of consumers
and/or end-users
Affordable medicines throughefficient processes
Wide range of geographic andcommunity availability

•
•
•
•
•

Employee volunteering
Corporate sponsorship

•
14

39

APPENDIX / Explanation of the Material Topics

Animal health and welfare••

Corporate culture
Protection of speak up reporters
Conflict of interest
Political engagement
Management of relationships with
suppliers including payment
practices
Corruption and bribery
Interaction with suppliers andbusiness relationship
Business ethics
Cultural integrity
Supplier transparency (SMP
programme)
ESG public disclosure
Animal welfare and wellbeing
Five freedoms (freedom fromhunger and thirst, from discomfort,
from pain, from injury, and disease,to express normal and natural
behavior, fear and distress)

Explanation of the Material Topics
#

Topic

Definitions

15

Data and information security

•
•
•
•

•
16

40

Innovation and technology••

Data and information security
measures (e.g. Cybersecurity
training and awareness)
Data ethics and policies
Stakeholder cooperation forcybersecurity
Compliant with all relevant
legislation
Privacy
Sustainable innovation
Leveraging innovative technologies
and new technology adaptation

APPENDIX / Explanation of the Material Topics

Definition of Key Performance Indicators
KPI

Definitions

Total GHG emissions are reported as the sum ofreported scope 1, scope 2 and scope 3 emissions.
Scope 1 emissions include all direct GHG emissions
Scope 1 Emissions
that occur from sources owned by DFE Pharma.
Scope 2 emissions include all indirect GHG emissions
associated with the generation of electricity, heating,
Scope 2 Emissions
cooling or steam purchased for DFE Pharma's own
consumption.
Scope 3 emissions are indirect emissions (other thanthose covered in scope 2) that occur outside DFE
Scope 3 Emissions
Pharma, including upstream and downstream
emissions.
Scope 3 emissions are indirect emissions (other thanthose covered in scope 2) that occur outside DFE
Pharma, including upstream and downstream
Scope 3 FLAG emissions
emissions. FLAG (Forest, Land and Agriculture )emissions are emissions related to agriculture, landuse change and land management, including forestry.
Total GHG intensity is reported as the ratio of total
Total GHG intensity
GHG emissions divided by produced volume.
GHG emission intensity Scope 1 and Scope GHG intensity is reported as the ratio of scope 1 and2scope 2 emissions divided by the produced volume
Total energy consumption is all the energy consumed
Total Energy Consumption
during operation.
Total energy intensity is reported as the ratio of total
Total Energy Intensity
energy consumption divided by produced volume.
Total water consumption is reported as the sum of all
Total Water Consumption
water that is consumed.
Total water intensity is reported as the ratio of total
Total Water Intensity
water consumption divided by produced volume.
Total wastewater is reported as the sum of all
Total Waste water
wastewater released from operation in liquid form.
Total GHG Emissions

41

APPENDIX / Definition of Key Performance Indicators

KPI
Total Wastewater Intensity
Total Waste
Degree of material separability
Recyclable packaging

Guarantees of Origin/Green Certificates

Traceable purchases
Suppliers that comply with biodiversityrelated regulations, standards, oragreements

Definitions
Total wastewater is reported as the ratio sum of all
wastewater divided by produced volume.
Total waste is reported as the sum of all solid waste
types collected from premises.
The degree of material separability is defined as theeffort required to separate different packaging
materials from a packaging unit.
Percentage of packaging material that can be recycled
Guarantees of origin are certificates issued for each unitof electricity and/or gas from renewable sources: wind,solar, co-fermentation of biomass, and manure
fermentation.
The percentage of purchased volume of raw materials
that is traceable to its source
The percentage of suppliers that comply to globally
recognized regulation, standards or certificates or
products for which a plan for sustainable development
is created

Lactose sourced from suppliers adhering to
The percentage of suppliers that adhere to certification
recognized animal welfare certification oror globally recognized standards
standards
The ratio of the total number of recordable own
Total Recordable Frequency Rate
personnel multiplied by the number of hours worked
divided by 200'000.
Represenation of women and men in DFE
Number of women and men in DFE Pharma roles inPharma’s senior roleslevel Hay 18 and up
KPIs are subject to further insights. In 2024, few output KPIs were added according to therevised strategy. Targets and Steering KPIs will be defined in 2024.

ESG Data: Sustainable Excipients
Unit

1.

ENVIRONMENT

1.1

Greenhouse gases
Total GHG (Scope 1,2, and 3)

1.2

2022

2023

Comments

1,004,284

946,028

995,850

964,130

Scope 1[ton CO2 eq.]

6,566

6,561

6,945

6,601

Scope 2

[ton CO2 eq.]

7,916

7,689

8,103

5,340

Scope 3

[ton CO2 eq.]989,802931,778

980,802952,189[GJ]

237,938

227,452

238,090

217,840

Energy consumption from non-renewable sources[GJ]

165.617160.131168.124

144.468

Energy consumption from renewable sources[GJ]

72,321

67,321

69,96673,373[GJ/ton]

10.98

11.01

10.29

9.72

542,752

544,545581,784

531,010

25.19

26.35

25.10

23.69

487,710489,330

519,604

482,109

22.51

23.68

22.41

21.51

All numbers are calculated using supplier emissions (whereavailable) from the product carbon footprint data received in
2023. Improvements made by suppliers in the 2020-2023
timeframe are currently not part of this dataset

EnergyTotal Energy Intensity

42

2021

[ton CO2 eq.]

Total Energy Consumption

1.3

2020

Water
Total Water Consumption[m3]

Total Water Intensity[m3/ton]Total wastewater[m3]

Total wastewater intensity[m3/ton]APPENDIX / ESG Data: Sustainable excipients

Numbers update based on evaluation of sources

ESG Data: Sustainable Excipients (continued)
Unit

2020

2021

2022

2023

Comments

ENVIRONMENT (continued)
1.4

Waste
Total waste

1.5

[ton]

626

690

Total hazardous waste

[ton]

81

61

Total non-hazardous waste

[ton]

545

629

Total waste to landfill

[ton]

98

403

Total re-used or recycle waste

[ton]

270

203

Total waste used for incineration

[ton]

160

15

PackagingTotal packaging materials

43

Installation of biomass boiler result in increase in ash

[ton]

3,888

3,493

4,060

3,935

Plastics packaging materials

[ton]

1,791

1,532

1,835

1,679

Metal packaging materials

[ton]

95

90

101

102

Wood packaging materials

[ton]

1,518

1,409

1,607

1,536

Paper packaging materials

[ton]

464

442

495

591

Other packaging materials

[ton]

21

20

22

27

Degree of packaging material separability[%]

APPENDIX / ESG Data: Sustainable excipients

80

77

87

90

Numbers updated retrospectively; and a correction issued forthe error in the MCC volume calculation for 2020 to 2023.

Separability is affected by the product mix

ESG Data: Positive, Inclusive and Safe Culture
Unit

2.

SOCIAL

2.1

Employee Safety

2.2

2020

2021

2022

2023

Total Recordable Frequency Rate

0.9

0.3

0.6

0.3

Number of Safety Observation Rounds

442

604

619

673

Number of Medical and Health check-up campaigns

1

3

3

Number of Health and Wellbeing Trainings and Webinars

2

2

2

17

12.5

[%]

Health and Wellbeing activities

Only one location reported: Goch, Germany.

10

Association and Collective Bargaining
Number of employee townhall meetings

4

Number of meetings Leadership Team and Works Council
Number of Works Meetings (Betriebsversammlungen)

44

TRFR = [total recordable of own personnel] multiplied by[hours worked] divided by [200’000]

Employee Health and Wellbeing

Influenza vaccination rate

2.3

Comments

4

4

4

Quarterly employee townhall meetings with Leadership
Team.

5

15

Meetings between the Leadership Team and Employee
Representatives (Works Councils).

1

4

Updating the employees on what has been achieved, what iscoming and receiving input from the employees

Employees represented by collective bargaining
agreements

[%]

37

Employees in Netherlands and Germany represented
by Works Council

[%]

100

APPENDIX / ESG Data: Positive, inclusive and safe cultureESG Data: Positive, Inclusive and Safe Culture
Unit

2.

SOCIAL (continued)

2.4

Working conditions
Total training hours

Total training hours per employee

2.5

2021

2022

2023

Comments

5.147

11

Social and sports activities
Events45

2020

APPENDIX / ESG Data: Positive, inclusive and safe culture73

Currently there is no general training reporting tool in place
which makes the reporting difficult. The plan for 2024 is to
set up one global tool to be able to report on trainings easier.
HAY: F – 309; M – 689. CLA: F – 54; M – 1116

ESG Data: Positive, Inclusive and Safe Culture (continued)
Unit

2020

2021

2022

2023

Comments

SOCIAL (continued)
2.6

Diversity, Equity and Inclusion
Percentage Women in workforce[%]

Percentage of women in the Leadership Team

[%]

0

24

24

25

20

20

17

Age groups in the Leadership Team
Percentage of women in the workforce

30-50: 1> 50: 5[%]

Age groups in the workforce

Number of nationalities
The difference of Relative Salary Position of men and women

2.7

46

35

35

37

Only HAY employees reported<30: 930-50: 177>50: 53

Only HAY employees reported

38

[%]

0.7

[k€]

50

Risk for incidents of child labour within DFE Pharma[%]

0

Risk for incidents of young workers exposed to hazardous workwithin DFE Pharma[%]

0

Only HAY employees reported

Communities
Donations to communities

2.8

In 2023 the Leadership team was expanded from 5 member to
6 member. The amount of female in absolute number
remained equal with 2022.

Forced & Child Labour

APPENDIX / ESG Data: Positive, Inclusive and Safe Culture

DFE Pharma does not employ young workers (age between 15
and 18)

ESG Data: Governance
Unit

3.

2020

2021

2022

2023

2

3

3

60

60

All Hay employees are trained. All employees have signed Codeof Conduct as part of contract

3

4

3 in the office environment + additionally 1 in the production
environment + additional awareness communication

Number of IT audits on third-party suppliers

10Will be embedded in policies in 2024

Suppliers on-site ESG audit

1

1

ESG topics are to be included in the Supplier Qualification
Management as of 2023.

Average Supplier performance Score (1 = poor; 4=very good)

3.05

2.93

Rating system is an average score including other elements(such as cost, quality, responsiveness & sustainability), revisedin 2023

GOVERNANCE
Number of Compass Code of Conduct Trainings given

Employees trained on Code of Conduct (%)
Number of Data Protection and Cybersecurity training

47

Comments

APPENDIX / ESG Data: Governance

1

GRI Content Index
Statement of Use
DFE Pharma has reported the information cited in this GRI content index for the period 01-January 2023 to 31-December 2023 with reference to the GRI Standards.
DISCLOSURE

LOCATIONOMISSION
Requirement(s) Omitted

ReasonExplanation

Confidentiality constraints

DFE Pharma is a privately owned company and does not
publish its financial information on public record. Financial
results are reported consolidated in FrieslandCampina
Annual Reports

Information unavailable/
incomplete

No external assurance has not yet been executed for thisreport. This will be considered for the next annual report.

GRI 2: General Disclosures 2021

2-1 Organizational detailsa. DFE Pharma GmbH & Co. KG
b. Privately ownedc. 2023 ESG Report page 4
d. See the website for an overview oflocations:
https://dfepharma.com/officesdistributors-overview/

2-2 Entities included in theorganization’s sustainability
reportinga. DFE Pharma: Germany, Netherlands,
India, Japan, USA, New Zealand, China,
Singapore, Brazil

2-3 Reporting period, frequency
and contact point

2-4 Restatements of informationa. 2023 ESG Report page 4; report ispublished annuallyb. The financial year is same as thereporting year in (a)c. The publishing date is 17 April 2024
d. esg@dfepharma.com
a-i change is made in methodology for
GHG emission calculation, fromdatabase/ spend based data to moregranular customer specific dataa-ii GHG emissions are 23% higher thanpreviously reported

2-5 External assurance

48

APPENDIX / GRI Content Index

b-c.

GHG Intensity on total volume notincluded as products produced fromvarious product streams are not easily
comparable
a-b

GRI Content Index
OMISSIONDISCLOSURE

LOCATION

2-6 Activities, value chain and other a. Pharmaceuticals
business relationships
b. c. See website About Us:
https://dfepharma.com/about-us/
d. ESG 2023 Report, page 6
2-7 Employees
a. 2023 ESG Report page 7; page 29
c. Head count2-8 Workers who are not
employees
2-9 Governance structure andcompositiona. 2023 Annual Report page 11 Governance Board comprising ofmembers from the two shareholders.

2-10 Nomination and selection of
the highest governance body
2-11 Chair of the highest
governance bodya. Yes.

2-12 Role of the highesta, c: 2023 ESG Report page 11
governance body in overseeing themanagement of impacts

49

APPENDIX / GRI Content Index

Requirement(s) Omitted

ReasonExplanationb, d, eInformation unavailable /incompletea-cInformation unavailable /incompleteb-c.

Information unavailable /incompletea-bConfidentiality constraintsbConfidentiality constraintsb

Information unavailable /incomplete

At the time of compilation of this report, this information
was not available. This will be considered for the next
annual report.
At the time of compilation of this report, this information
was not available. This will be considered for the next
annual report.
At the time of compilation of this report, this information
was not available. This will be considered for the next
annual report.
DFE Pharma currently does not publicly disclose thecomposition of its governance board. This information will
be considered for the next annual report.
DFE Pharma currently does not publicly disclose thecomposition of its governance board. This information will
be considered for the next annual report.
Information not fully available at the time of publishing thisreport. This information will be considered for the next
annual report.

GRI Content Index
DISCLOSURE

LOCATIONOMISSION
Requirement(s) Omitted

2-13 Delegation of responsibility for a. 2023 ESG Report page 11
managing impacts
b. During goverance board meetings
2-14 Role of the highest
a. Formal sign off materiality topics by LT
governance body in sustainability b. NA
reporting
2-15 Conflicts of interest
a. Annaul risk and control updatesb. Yes2-16 Communication of criticala-bconcerns
2-17 Collective knowledge of thea-bhighest governance body
2-18 Evaluation of the performancea-bof the highest governance body
2-19 Remuneration policies
a-b

50

ReasonExplanation

Information unavailable /incomplete
Information unavailable /incomplete
Information unavailable /incomplete
Confidentiality constraints

This information will be considered for the next annual
report.
This information will be considered for the next annual
report.
This information will be considered for the next annual
report.
DFE Pharma currently does not publicly disclose thecomposition of its governance board. This information will
be considered for the next annual report.
DFE Pharma currently does not publicly disclose thecomposition of its governance board. This information will
be considered for the next annual report.
This information will be considered for the next annual
report.

2-20 Process to determine
remunerationa-b

Confidentiality constraints

2-21 Annual total compensation
ratio
2-22 Statement on sustainability
development strategy

a-cInformation unavailable /incomplete

a. 2023 ESG Report page 2,10, 11, 31, 56

APPENDIX / GRI Content Index

GRI Content Index
DISCLOSURE

LOCATION

2-23 Policy commitments

See website: Governancehttps://dfepharma.com/ourcommitment/governance/
2023 ESG Report page 31, 33
2023 ESG Report page 9, 31, 33; See
code of conduct on website:
https://dfepharma.com/media/glhh20ai/dfe-code-of-conduct-businesspartners.pdf
2023 ESG Report page 33;
See code of conduct on our website:
https://dfepharma.com/media/glhh20ai/dfe-code-of-conduct-businesspartners.pdf
2023 ESG Report page 33;
See code of conduct on our website:
https://dfepharma.com/media/glhh20ai/dfe-code-of-conduct-businesspartners.pdf
Zero2-24 Embedding policy
commitments

2-25 Processes to remediate
negative impacts

2-26 Mechanisms for seeking
advice and raising concerns

2-27 Compliance with laws andregulations
2-28 Membership associations51

OMISSION
Requirement(s) Omitted

ReasonExplanationa.

Information unavailable /incomplete

Information not fully available at the time of publishing thisreport. This information will be considered for the next annual
report.
Information not fully available at the time of publishing thisreport. This information will be considered for the next annual
report.
Information not fully available at the time of publishing thisreport. This information will be considered for the next annual
report.

2-29 Approach to stakeholder
engagement

2023 ESG Report page 8

aInformation unavailable /incomplete

2-30 Collective bargaining
agreements

2023 ESG Report page 26b

Information unavailable /incomplete

APPENDIX / GRI Content Index

GRI Content Index
DISCLOSURE

LOCATIONOMISSION
Requirement(s) Omitted

ReasonExplanationa-fInformation unavailable /incomplete

This is planned for 2024 following our strategy androadmap

GRI 3: Material Topics 2021
3-1 Process to determine material 2023 ESG Report page 8
topics
3-2 List of material topics
2023 ESG Report page 9

3-3 Management of material topics 2023 ESG Report page 10

GRI 302: Energy 2016
302-1 Energy consumption within
the organization
302-3 Energy intensity

2023 ESG Report page 14, 15

302-4 Reduction of energy
consumption
302-5 Reductions in energy
requirements of products andservices2023 ESG Report page 15, 16

2023 ESG Report page 152023 ESG Report page 15, 16

GRI 305: Emissions
305-1 Direct (Scope 1) GHG
emissions305-2 Indirect (Scope 2) GHG
emissions

52

Assumptions and methods will be added in the next annual
report.

2023 ESG Report page 142023 ESG Report page 14

APPENDIX / GRI Content Index

Standards, methodologies and assumptions will be added in
the next annual report.
Standards, methodologies and assumptions will be added in
the next annual report.

GRI Content Index
DISCLOSURE

LOCATION

305-3 Other indirect (Scope 3) GHG 2023 ESG Report page 16
emissions305-4 GHG emissions intensity
2023 ESG Report page 15
305-5 Reduction of GHG emissions 2023 ESG Report page 14,15,16,17

GRI 306: Waste 2020306-1 Waste generation andsignificant waste-related impacts
306-2 Management of significant
waste-related impacts
306-3 Waste generated

2023 ESG Report page 20
2023 ESG Report page 20
2023 ESG Report page 20

GRI 308: Supplier Environmental Assessment 2016308-1 New suppliers that werescreened using environmental
criteria

53

See website: Governancehttps://dfepharma.com/ourcommitment/
2023 ESG Report page 17

APPENDIX / GRI Content Index

OMISSION
Requirement(s) Omitted

ReasonExplanation

GRI Content Index
DISCLOSURE

LOCATIONOMISSION
Requirement(s) Omitted

ReasonExplanationa-c

Information unavailable /incomplete

Information currently not shared publicly. This will beconsidered for 2024.

b-g

Information unavailable /incomplete
Information unavailable /incomplete

Information currently not shared publicly. This will beconsidered for 2024.
Information currently not shared publicly due to privacy andconfidentiality reasons.

GRI 401: Working Conditions 2016
401-2 Benefits provided to full-time 2023 ESG Report page 27; and website: A,bemployees that are not provided to https://dfepharma.com/ourtemporary or part-time employees purpose/safety/

GRI 403: Occupational Health and Safety 2018403-1 Occupational health andsafety management system

2023 ESG Report page 24; and website:
https://dfepharma.com/ourpurpose/safety/
2023 ESG Report page 24403-5 Worker training on
occupational health and safety403-6 Promotion of worker health 2023 ESG Report page 24,25
403-7 Prevention and mitigation of 2023 ESG Report page 24,25
occupational health and safety
impacts directly linked to business
relationships
403-8 Workers covered
2023 ESG Report page 24
by occupational health and safety
management system403-9 Work-related injuries
2023 ESG Report page 24403-10 Work-related ill health542023 ESG Report page 24

APPENDIX / GRI Content Index

A-f

GRI Content Index
DISCLOSUREOMISSIONLOCATION
Requirement(s) Omitted

ReasonExplanationb

Information unavailable/
incomplete

Information was incomplete when this report was being
prepared. This information will be reviewed and will beconsidered for the next reporting cycle.

cInformation unavailable/
incomplete

Information was incomplete at the time of preparing thisreport. This information will be reviewed and will beconsidered for the next reporting cycle.

b

Information unavailable/
incomplete

Information was incomplete at the time of preparing thisreport. This information will be reviewed and will beconsidered for the next reporting cycle.

GRI 404: Career Management & Training 2016404-1 Average hours of training per2023 ESG report page 27, 45
year per employee

GRI 405: Diversity and Equal Opportunity 2016405-1 Diversity of governancebodies and employees

2023 ESG report page 29405-2 Ratio of basic salary andremuneration of women to men

2023 ESG report page 29

GRI 407: Freedom of Association and Collective Bargaining 2016407-1 Operations and suppliers inwhich the right to freedom of
association and collective
bargaining may be at risk

2023 ESG Report page 26,31

GRI 408: Child labor, Forced Labor & Human Trafficking 2016408-1 Operations and suppliers at
significant risk for incidents of child 2023 ESG Report page 26,31
labor

GRI 409: Forced or Compulsory Labor 2016409-1 Operations and suppliers at
significant risk for incidents of2023 ESG Report page 26,31
forced or compulsory labor

55

APPENDIX / GRI Content Index

Measuring, Reporting, and Assumptions
Measuring emissions.
Our GHG emissions reporting methods follow the GHG Protocol. This provides the best practice guidance and standards when it comes to calculating and reporting emissions. We recognize that
GHG accounting and methodologies are frequently being updated, and we are committed to using the best available science, data, and tools. We are transparent about our approach and workwith third parties to ensure our methods are inclusive and robust.

Offsets
DFE Pharma is aiming to prioritize emissions reduction through direct abatement, rather than using carbon credits. As such, we plan to avoid the use of offsets to achieve our 2030 emissions
reduction targets. We have invested in carbon credits sourced renewable energy projects in intermediate timing, until sufficient renewable sources are available.

Identifying our assumptions and significant sources of uncertainty
The achievement of our 2030 Scope 1 and 2 emissions reduction target depends on our ability to successfully transition via energy efficiency and fuel switching to renewable sources.
The principle that applies to all emission sources is that the base year or other recalculations are based on the Greenhouse Gas Protocol’s
guidelines. This applies, for example, to changes in methodology.

Our aim is to report as much as possible on actual supplier data. In case actual data is received from our suppliers, industry benchmark data or spend based data will be replaced by actual
product carbon footprint data. In our 2023 report the scope 3 data is revised using the actual product carbon footprint data of 2023 available and applied to base year 2021 onwards.
Improvements made by suppliers in the 2020-2023 timeframe are currently not part of this dataset
In respect of all our targets, we will continue to assess the relevant risks and review our pathway to emissions reductions.

56

APPENDIX / Measuring, Reporting and Assumptions

Process to a Revised and Integrated Sustainability Strategy
Integrated sustainability strategy. DFE pharma is taking the next step inour sustainability journey, building forth on the ESG strategy that has been coveredin our corporate strategy and purpose “Your medicine our solutions. Moving
towards a healthier world”. Preparing for an ultimate integration of sustainability
and corporate strategy, signaling the value of sustainability to the organization andstakeholders.

Market value story. DFE Pharma’s strategic differentiators are set out in its
value story towards the market and our customers. Sustainability is defined one ofthose market values.

Focus areas and ambitions. DFE Pharma has three unique sustainability
elements with which it can signal its sustainability efforts, structured along: 1) the
impact of its products on the environment; 2) the impact of its (sourcing) processes
within the value chain on nature; 3) the impact of people arrangements within its
own organization. Three focus areas are defined with clear ambitions.

Materiality. Following the double materiality analysis 8 materiality topics havebeen determined to be most material for DFE Pharma and its stakeholders that are
categorized within the focus areas or defined as fundamental to DFE Pharma.
In 2024 the strategy will be further translated into roadmap and key initiatives. On
top of the output KPIs, steering KPIs will be set and DFE Pharma will start
monitoring on those KPIs.

57

APPENDIX / Process to a Revised and Integrated Sustainability Strategy

DFE Pharma sustainability frameworkGlossary58

Abbreviation

Meaning

Abbreviation

Meaning

C2F

Closer to the Formulator

INTO

Inhalation Together

CEO

Chief Executive Officer

ISOInternational Organization for Standardization

CFO

IT

Information Technology

KPI

Key Performance Indicator

CO2e

Chief Financial Officer
Carbon dioxide equivalent (mulitplying the quantity of agreenhouse gas by the relevant global warming
potential)

LCA

Life Cycle Assessment

CSRD

Corporate Sustainability Reporting Directive

LPO

Local Privacy Officer

DE&I

Diversity, Equity and Inclusion

PMO

Periodic Medical check

EC

European Commission

RSP

Responsible Sourcing Policy

EI

Energy Intensity

SASB

Sustainable Accounting Standards Board

ESRS

European Sustainability Reporting Standards

SBTi

Science-Based Target Initiative

ESG

Environment, Social and Governance

TRFR

Total Recordable Frequency Rate

EUR

PCF

Product Carbon Footprint

FLAG

Euro (currency)
Forest, Land and Agriculture guidance for setting
science based targets

UN SDG

United Nations Sustainable Development Goals

GDPR

General Data Protection Regulation

WCOM

World Class Operations Management

GHG

Greenhouse Gas

GJ

Gigajoule

GRI

Global Reporting InitiativeHR

Human Resources

APPENDIX / Glossary

YOUR MEDICINESOUR SOLUTIONS.
MOVING TO A HEALTHIERWORLD.
Have ESG questions or ideas?
Please get in touch esg@dfepharma.com
www.dfepharma.com
This report contains forward-looking statements based on DFE Pharma’s
assumptions and forecasts. Various known and unknown risks, uncertainties
and other factors could lead to material differences between the company’s
actual and future performance or development and the estimates given here.
DFE Pharma does not assume any obligation whatsoever to update theseforward-looking statements or to adjust them to consider future events ordevelopments.