2023

Corporate
Sustainability
ReportCorporate sustainability at Schrödinger
follows a simple formula.
When we add value to the world, we create value for ourcompany, and when we build value for ourselves, we generatevalue for the world. This approach follows the principles of“Shared Value,” a business model that emphasizes commercial
success while simultaneously advancing the needs of society.
This virtuous cycle is embodied in our Corporate Sustainability
platform, VALUE2, and memorialized in our second annual
Corporate Sustainability Report. Staying true to Shared Value,
we present the key topics in this publication through thedual lens of their impact on and beyond Schrödinger.

Table of Contents
Message from Our CEO

4

About Schrödinger

6

ESG Governance

13

Drug Discovery and Life Science Collaborations

17

Company Culture and Employee Engagement

20

Diversity, Equity, and Inclusion (DEI)

24

Employee Well-Being

30

Academic and Community Outreach

33

Environmentally Beneficial Solutions

37

Operational Environmental Footprint

40

Ethics, Transparency, and Compliance44

Responsible Use of Technology

47Intellectual Property

49

Cybersecurity and Data Privacy

50

Reporting Appendix

52

GRI Index

52

SASB - Biotech

57

SASB - IT and Software

59*Schrödinger completed an environmental, social, governance (ESG) materiality assessment
in 2022. This report is structured along the 12 topics deemed most material to ourselves
and our stakeholders through that process. For more information, see Page 16.

Message from Our CEO
At Schrödinger, we are guided by our mission to improve human health andquality of life by transforming the way therapeutics and materials are discovered.
It is important that we apply our technology in ways that positively impact
our stakeholders, society, and the planet we share. We are resolute in ourcommitment to governing and operating our company in alignment with theconcept of Shared Value. This principle is central to our Corporate Sustainability
strategy, which we call VALUE2:
When we add value to the world, we create value for our company, and when webuild value for ourselves, we generate value for the world.
In our second annual Corporate Sustainability Report, I’m pleased to share thesubstantial progress we have made over the past year in building out and executing
on our sustainability strategy. Throughout 2023, we advanced every aspect ofour performance on environmental, social, and governance (ESG) parameters bydeveloping a road map for our efforts that includes setting goals for each of our
ESG material topics.
While still relatively early in our environmental sustainability journey, we madesignificant investments in better understanding and tracking our environmental
impacts, including our carbon footprint. With this information in hand, we’ve
signaled our intent to establish science-based greenhouse gas (GHG) emissions
reduction targets in alignment with the Science Based Targets initiative. We also
expanded our portfolio of greener workspaces, receiving LEED® Gold designations
for three of our offices in the United States and anticipate achieving three more
LEED® designations for our first wet lab in Framingham, Massachusetts, and ouroffices in Seoul and Tokyo.

We remain steadfast in our commitment to diversity, equity, and inclusion(DEI), and I meet regularly with our DEI team to listen and learn about how we
can continue to expand on our DEI initiatives. In 2023, we introduced new focus
areas to strengthen the work of our employee resource groups aiming to increase
engagement, accountability, and growth opportunities. We also introduced newhealth and well-being benefits for our employees.
We made notable achievements in our efforts to support students of all ages andlift the communities where we work and live.
•

Schrödinger and two City University of New York (CUNY) institutions were
co-awarded a $1 million National Science Foundation grant to increase
access for underrepresented students to industry-leading technology
and paid internships to prepare them for careers in drug discovery.

•

We hosted a symposium, "Catalyzing Gender Equity at
Schrödinger: Early Careers in Computational Sciences," aimed
at women and nonbinary scientists and Ph.D.s.

•

We launched our first Global Social Impact Policy and released
a new social impact platform for employees, consolidating allmatching gifts and volunteering activities globally. 4 We also strengthened our dedication to transparency, integrity, and soundcorporate governance by creating and updating key policies, such as our Supplier Codeof Conduct, in response to emerging needs, new regulations, and identified gaps.
Schrödinger also took major steps forward in progressing the development of ourpipeline of proprietary drug discovery programs, including initiating a Phase 1 clinical
trial of the company’s second clinical-stage program, SGR-2921, in patients with relapsed
or refractory acute myeloid leukemia or high-risk myelodysplastic syndromes.
The determination of our employees to help make this world a better place drives
achievements like those you will find in this report. As our journey continues, we arecommitted to providing employees with an atmosphere of engagement and belonging,and opportunities for growth.
I'm confident Schrödinger has the foundation and fundamentals in place to continue todeliver on our mission and make a meaningful impact on the world. I am excited about
what lies ahead. Thank you for your interest in our work.

Sincerely,

Ramy Farid, Ph.D.
President and CEO

5AboutSchrödinger
Built upon more than 30 years of researchand development (R&D), Schrödinger’s
computational platform, powered by physics,
is transforming the way therapeutics
and materials are discovered to makeinnovations of the future achievable, today.
We work with biopharmaceutical andindustrial companies, academic institutions,
government laboratories, and philanthropic
global health organizations. Our platform
enables the discovery of high-quality, novel
molecules for drug development and materials
applications more rapidly, and at a lower
cost, compared to traditional methods.
Our own therapeutics team deploys ourplatform internally to advance a portfolio of
collaborative and proprietary programs toaddress unmet medical needs. We are also
helping customers working in materials science
to discover the next generation of better,stronger, lighter high-performance materials.

6

Schrödinger at a Glance

876

30+

$216.7M

full- and part-time
employees globally*years of innovation incomputational chemistry research43%

with Ph.D. degrees

SDGR

Nasdaq stock exchange
ticker symbol2023 total revenue

60%

focused on researchand development~1,785
customers worldwide†*As of Dec. 31, 2023.
†Active Customers (number of customers who had an Annual Contract Value (ACV) >$1,000) as of Dec. 31, 2023.
(For more financial information, please see our Schrödinger 2023 Annual Report on Form 10-K)

7

Our Organization
Global Headquarters
New York, New YorkNorth America
Cambridge, Massachusetts
Framingham, Massachusetts
Portland, Oregon
San Diego, California

EuropeMannheim, Germany
München, Germany

Asia
Bangalore, India
Hyderabad, India
Seoul, Korea
Tokyo, Japan

MünchenMannheim

Framingham
PortlandCambridge
Tokyo

New York
San Diego

Seoul

Bangalore
Hyderabad8

A History of Scientific Innovation
and Platform Advancement

Quantum
Mechanics
Enabled accurate
calculation of small
molecule solution
structures

Molecular
Dynamics
Enabled platform
to simulate
molecular motion

Molecular
Mechanics
Enabled fastcalculation ofsmall molecule
solution
structures

Schrödinger
Founded

1990

Protein
Refinement
Enabled accurate
prediction of local
protein strucure

1995

2000

Docking
A breakthroughin virtual
screening for Hit
Identification

2005

2010

Free Energy
Calculations
Broadly applicableand accurate
calculation ofpotency, selectivity,and solubility

Next Gen
Protein
Refinement
Enablement ofproteins without
experimental
structures

Comprehensive
Force Field
Enabled accurate
descriptionof atomic
interactions

ActiveLearning
Enabledaccurate largescale property
calculations

2015

2020
9

Schrödinger's Proprietary Platform Fuels Discovery
Drug discovery and development efforts can be complex, lengthy, capital-intensive,and prone to high failure rates. Traditional drug discovery relied upon many iterationsof costly and time-consuming manual molecule design, chemical synthesis, andexperimental testing. The failure rate in traditional drug discovery was also highbecause predicting properties of molecules in advance of chemical synthesis isextremely complex and not amenable to traditional approaches.

Over the past several decades, and with the concerted efforts of hundreds of ourscientists and software engineers, we have developed a physics-based computational
platform that can predict critical properties of molecules with a high degree of
accuracy. This key capability enables drug discovery teams to design and selectively
synthesize molecules with more optimal properties, reducing the average time andcosts required to identify a development candidate, and increasing the probability thata drug discovery program will enter clinical development. Furthermore, we believe thatdevelopment candidates with more optimized property profiles may have a higher
probability of success in clinical development.

Platform Validated by Advancing Collaboration Programs1,2
8 programs in the clinic (+ 5 in IND-enabling studies)
PHASE 1PHASE 2

PHASE 3

Immuno-oncology

MetabolicDiseases***Pulmonary
Arterial Hypertension

Inflammatory
Bowel Disease

Oncology**

Psoriasis***FDA-APPROVED

Oncology

Undisclosed

Undisclosed

TIBSOVO*

IDHIFA*

ADDITIONAL PROGRAMS

in discovery and preclinical development with:
1) Based on publicly available information or information disclosed to us. 2) All of the programs being pursued under these collaborations are owned and controlled by each respective collaborator.
*Acquired by Servier **Acquired from Petra Pharma ***Acquired from Nimbus

10Life Science in Action
Spotlight on discovery of SGR-1505, our MALT1 inhibitor
Finding a novel molecule with the right balance ofpotency, specificity, and other desired physicochemical
properties is the essential challenge of every drug
discovery program. In principle, increasing the numberof rationally designed compounds assessed for thesevarious properties increases the odds of success.

methods, and synthesized just 78 molecules to
identify molecules suitable for development candidate
nomination within 10 months of program initiation.
MALT1 inhibition has a potential role in B-cellmalignancies and immunology. We have completed a
Phase 1 clinical trial of SGR-1505 in healthy volunteers,
and a Phase 1 clinical trial in patients with relapsed or
refractory B-cell malignancies is ongoing. Emerging
resistance to approved B-cell malignancy treatments
creates opportunity for novel mechanisms withcombination potential.

Designing high-quality molecules in silico — with the
speed and accuracy to explore billions of molecules —is the guiding ethos of our digital chemistry strategy.
In our MALT1 program, we evaluated over 8 billion
compounds, scored approximately 12,000 compounds
using advanced multiparameter optimization

8.2 billion

compounds
computationally evaluated78

total compounds
synthesized in lead series

DesignSAR analysis
of publishedchemical matter

Crystallizationand structure
modeling

Modeling strategy and design-make-test-analyze (DMTA)
cycle employed for MALT1 inhibitor program.
Learn More: Schrödinger MALT1 Case Study

to discovery ofdevelopment candidate

Predict

Crowdsourced medicinal
chemistry ideation
Synthetically-aware,large-scale chemical
enumeration and filtering

10 months

Capture,Collaborate,and Analyze

Digital assays for potency,solubility (FEP+); models forpermeability and clearance(ADMET Modeling)

Make–Test

Synthesis andexperimental assays

Development candidate

11Materials Science in Action

The physics underlying the optimization of the properties of drug molecules and thedesign of novel industrial materials is the same, enabling us to extend our computational
platform to materials science applications in fields like aerospace, energy, semiconductors,
and electronic displays. Our platform integrates predictive physics-based simulation withmachine learning techniques to transform the way new materials are discovered. The
improvements made in developing materials utilized in the products many people use or
experience every day drive greater durability and safety and lessen environmental impacts.
Some areas we are working on with customers include:

Energy storage
through increased capacity, shorter
charging times, and improved fire safety oflithium-ion batteries

Polymer composites
to decrease fuel consumption andlower greenhouse gas emissions
from next-generation aircraft

Optoelectronic materials
to reduce power consumption anddependence on heavy metals for televisionand phone displays

Packaged goods
to achieve more sustainable personalcare products by using eco-friendly
ingredients and packaging to reduce
waste and extend shelf life

For several years, Schrödinger and Reckitt1 have collaborated to apply molecular simulation
across a broad range of materials science applications, including detergents, drug formulations,and packaging materials. Projects were executed to improve packaging materials to meet newsustainability standards. The use of simulation enabled the scientists to efficiently filter out
incompatible candidate materials on very short research timelines. Across several projects,
Reckitt scientists credit Schrödinger materials science capabilities with accelerating internal R&D
timelines by tenfold.
1) https://extrapolations.com/driving-sustainability-at-reckitt-through-the-adoption-of-molecular-simulations/

12

ESG Governance
Schrödinger Definition: We maintain strong ESG standards and practices that bring value to our company, our stakeholders, and our planet.
We continually evaluate the ESG-related structures, processes, policies, and programs we have in place and identify opportunities to improve our performance.

value to our company•

Manages ESG risks and leverages opportunities•

Creates value for Schrödinger and our stakeholders•

Guides employee expectations and provides a strong
framework to operationalize company mission and values•

Supports reputation and helps attract andretain the best and brightest talentvalue for the world

Committing to Sound
ESG Governance•

Conveys sound management of operationaland reputational risks to key stakeholders••

Addresses societal challenges andhelps protect the environment

Demonstrates business leaders’ support
and prioritization of ESG performance

Corporate Sustainability at Schrödinger
At Schrödinger, we use the term Corporate Sustainability to describe how we embed wide-ranging ESG principles into the way that we operate, serve, and engage.
We continue to make significant progress in our Corporate Sustainability journey, both internally at the highest levels of the company and with leaders, decision-makers,
and influencers throughout our enterprise, and externally with input from critical stakeholders.

13Schrödinger’s Board of Directors is fully engaged in thecompany’s Corporate Sustainability matters. The company’s
Corporate Governance Guidelines, which serve as aframework for the conduct of the Board, include reviewing
the company’s environmental, social, and governance (ESG)
policies and practices, among other Board responsibilities.
The Nominating and Corporate Governance Committee
maintains formal oversight of ESG efforts.
“The Nominating and Corporate Governance Committee shallperiodically review, report, and make recommendations to
the Board concerning the company’s environmental, social,governance policies and practices, including with respect toCorporate Sustainability efforts and diversity, equity, andinclusion issues.”
Schrödinger’s Head of Corporate Sustainability, who also chairs
the company’s Corporate Sustainability Steering Committee(CS-SC), keeps the Nominating and Corporate GovernanceCommittee and the Board apprised of the company’s ESG
plans and performance through regular updates.

In 2023, the Nominating and Corporate
Governance Committee met two times, andthe Board met five times. During that time,
ESG-related topics discussed included:•

Director independence•

Board diversity and Board skills•

Board committee composition•

Board structure•

Board member time commitments•

Ongoing development and implementationof our ESG strategy•

Global social impact strategy•

Ongoing training and support for DEI efforts•

Environmental, health, and safety efforts•

Shareholder engagement•

Governance best practices•

Compliance with recently finalized andupcoming governance rules and regulations

Corporate Sustainability
Aspirations
To continue advancing Corporate
Sustainability at Schrödinger, we work closelywith members of our Corporate Sustainability
Steering Committee and others to further
develop our Corporate Sustainability
aspirations, aligned to our ESG material topics.

Material Topic ESG GovernanceEngaged Board of Directors

These aspirations serve as a road map forthe continued progress and evolution of
Corporate Sustainability at Schrödinger.

For more information on Corporate
Governance at Schrödinger, please
access the following resources:
Corporate Governance Documents
and Board Committee Charters

Board Members
MichaelLyntonChairman of
the Board

RosanaKapellerLibermann,
M.D., Ph.D.

Jeffrey A.
Chodakewitz,
M.D.

Arun
OberoiRamy
Farid, Ph.D.
President
and CEO

Gary
SenderRichard A.
Friesner, Ph.D.
Co-founder andScientific Advisory
ChairmanNancy A.
Thornberry

Gary
Ginsberg•

Corporate Governance Guidelines•

Global Code of Business Conduct and Ethics•

Audit Committee Charter•

Compensation Committee Charter•

Nominating and Corporate GovernanceCommittee Charter•

Drug Discovery Committee Charter

BylawsSchrödinger 2024 Proxy Statement
Schrödinger 2023 Annual Report on Form 10-K

14

The Schrödinger Corporate Sustainability Steering
Committee (CS-SC) is sponsored by our Chief Legal Officer
and chaired by our Head of Corporate Sustainability,with representation from more than a dozen company
functions and the three major regions where we havea presence. The Committee’s mandate is to supportand strengthen our ongoing commitment to Corporate
Sustainability and serve as a cross-functional, enterprisewide task force charged with advancing and expediting
our ESG programs, policies, and performance.
The CS-SC meets quarterly to discuss actionable
updates to our Corporate Sustainability program,share each function’s specific goals and progress, andlearn about best practices and industry trends.

Corporate Sustainability Steering Committee:
Primary Responsibilities

Develop and activate
Schrödinger’s Corporate
Sustainability programmingand commitments.

Help establish ESG-related
objectives, targets, and
ESG key performanceindicators (KPIs) and track
their performance.

Monitor the impact ofSchrödinger’s businesses,
operations, and programs
through a Corporate
Sustainability lens, taking
into account the interestsof all key stakeholders.

Increase visibility andunderstanding of Schrödinger’s
Corporate Sustainability
strategy, activities, andleadership with key internaland external stakeholders.

Partner in the developmentof internal and external
communications related to
Corporate Sustainability.

Provide guidance on
ESG-related policy andstandards development.

Material Topic ESG GovernanceCorporate Sustainability
Steering Committee

Review and assessinternal KPIs.

15

In 2022, we undertook a research exercise known as a “double materiality
assessment,” where we worked to determine the ESG-related topics mostimportant to both our company and our stakeholders. To compile thelist of topics for consideration, we interviewed nearly a dozen company
leaders, looked to the work of companies in adjacent industries, andconsulted key ESG standards and frameworks like the Global Reporting
Initiative (GRI), Sustainability Accounting Standards Board (SASB), andUnited Nations Sustainable Development Goals (SDGs).
More than 30 topics were examined and ultimately narrowed to 12, whichwere subsequently rated and ranked in importance by both internaland external stakeholders. External stakeholders represented investors,
customers, academics, and advocacy groups. The ranked-and-rated topics
then underwent a series of validation exercises, including a workshop
with our CEO, other company leaders, and subject matter experts andwere ultimately endorsed by our CEO and Board of Directors.
Against the final list of prioritized ESG material topics, we began exploring
gaps, identifying opportunities, and laying out aspirations for both thenear and long term. As we advance this work, we expect to periodically
update our ESG materiality assessment to accurately reflect the mostimportant ESG material topics for our company and stakeholders.

Schrödinger ESG Material Topics and Their Boundaries
Topic (alphabetical order)

Boundary

Key Stakeholders

Academic andCommunity OutreachPrimarily External

Academics, communities,
students

Company Culture/
Employee Engagement

Primarily Internal

Employees, prospective
employees

Cybersecurity/Data Privacy

Internal and External

Collaborators,
customers, employees

Diversity, Equity, andInclusion (DEI)Internal and ExternalCommunities,
employees, suppliers

Drug Discovery/Life
Science Collaborations

Internal and External

Collaborators, customers,
medically underserved
populations

Employee Well-being

Internal

Employees andtheir families

Environmentally
Beneficial Solutions

Primarily External

Customers, environment

ESG GovernanceInternal and External

Entire value chain

Ethics, Transparency,
and ComplianceInternal and External

Entire value chain

Intellectual Property

Internal and External

Collaborators, customers,
medically underserved
populations

Operational Environmental
Footprint

Internal and External

Entire value chain

Responsible Use of Technology

Primarily External

Employees, industry,society at large

Material Topic ESG Governance

ESG Materiality Assessment

For more on our approach to Corporate Sustainability reporting,please see the Reporting Appendix section of this document.

16

Drug Discovery andLife Science Collaborations
Schrödinger Definition: Our physics-based computational platform powers drug discovery efforts, drives research collaborations to develop
novel medicines for critical health needs, and helps our customers, collaborators, and our company accelerate drug discovery processes.

value to our company

value for the world

Participating in New
Medicine Discovery
and Collaborations•

Advances Schrödinger’s computational platform
through varied and new applications••

Enables deep collaboration between Schrödinger software/
application scientists and in-house therapeutics teams•

Empowers employees to live their values
and the Schrödinger mission•

Provides hope to individuals who may otherwise
suffer health, economic, and social hardships•

Broadens exposure to the benefitsof Schrödinger’s platform•

May ultimately lessen the impact of disease andhealth conditions on economic and social systems•

Contributes to solutions for some of theworld’s most intractable health concerns

Exposes scientists, health professionals, nonprofits,
and others to new ways of solving major challenges

Enriching Human Health With Our Platform and Partnerships
Schrödinger has long prioritized new applications for our platform to positively impact
people’s lives around the world. The process of drug discovery has traditionally beenlaborious and expensive, but our platform enables us and our partners to test morecompounds on a computer, increasing the speed and efficiency of drug discovery, andultimately enabling the exploration of more therapeutic hypotheses. That means we can

ask more questions and identify potentially promising solutions more quickly, including
treatments with fewer drug-related side effects.
We are applying our computational platform to advance a broad pipeline of drug
discovery programs in collaboration with leading biopharmaceutical companies. 17Material Topic Drug Discovery and Life Science Collaborations

 We are also using our platform to discover novel moleculesfor our pipeline of proprietary drug discovery programs
spanning a wide range of targets and therapeutic areas, with thepotential to also address smaller indications and rare diseases.
For example, two of our cancer programs have initiatedclinical trials in patients with relapsed refractory hematologicalmalignancies. For patients suffering from such conditions,
often accompanied by poor outcomes, the aim of these cancer
programs is to discover medicines that are effective and welltolerated. By licensing our platform, collaborating with othercompanies, and developing our own drug candidates, we are
maximizing our positive impact on human health. We believethat bringing better drugs to market faster can help more people
live longer and better lives.
You can learn more about our efforts in the About Schrödinger
section of this report and in the Schrödinger 2023 Annual Reporton Form 10-K.

Global Health Collaborations
Striving to Make Betterand Safer Treatments
Nimbus Therapeutics and Schrödinger
codiscovered TAK-279 (formerly
known as NDI-034858), an oraltyrosine kinase 2 (TYK2) inhibitor,
currently in Phase 3 for the treatmentof psoriasis and Phase 2 for thetreatment of psoriatic arthritis. The
development of TAK-279, and eventual
acquisition by Takeda for $4 billion,
highlights the ability of Schrödinger’s
physics-based software to identify
and create best-in-class drugs, withpotentially fewer side effects.

Schrödinger’s contributions to philanthropic global
health initiatives help advance scientific progress incombating a variety of rare, neglected, and infectious
diseases, and other health issues that have enormous
societal impact. Our technology allows us to bring
together industry, government, and nonprofits toaddress these challenges around the world.

Nonhormonal Contraceptives
Today’s contraceptive methods do not always meetthe needs or cultural considerations of all women andgirls. Globally, 40% of pregnancies are unintended,
and more than 200 million women and girls in lowand middle-income countries have an unmet needfor contraception. About 40% of women and girls who
use a contraceptive method stop within the first year,
and many say it is because they are dissatisfied withthe method. Nearly all the contraceptive options on
the market today act on hormone levels, and this cancause unwanted side effects.

Schrödinger received a two-year, $4.9 million research
grant from the Bill & Melinda Gates Foundationin 2021 to support early-stage drug discovery ofnonhormonal contraceptives. In 2023, the grant was
renewed with an additional $3.5 million, enabling
us to continue this small molecule, nonhormonal
contraceptive program. We are pleased to have thisfoundational opportunity to contribute to such a
crucial health initiative.
In October 2023, Schrödinger scientists presented
research from the contraceptive program at the Grand
Challenges Annual Meeting in Senegal, organized by
the Gates Foundation. The meeting brings together
funding and research partners fostering innovation tosolve key global health and development problems.
We continue to collaborate across organizations
within the Gates Foundation ecosystem to advancethe discovery, development, and testing of potential
nonhormonal contraceptives.
18

Schrödinger contributes to the Medicines for Malaria Venture, aproduct development partnership for antimalarial drug research.
Malaria is a life-threatening disease that is transmitted by infectedmosquitoes and most prevalent in developing countries. The
goal of this work is to discover and develop orally available small
molecule drugs for the treatment of this disease.
Using our computational platform, researchers discovered
highly potent and selective small molecule Dihydroorotate
dehydrogenase (DHODH) inhibitors with excellent drug-like
properties. These compounds are predicted to yield a better
therapeutic index, resulting in safer treatment with fewer side
effects, compared to the standard of care. Additionally, the longhuman half-life of such compounds has the potential for a lessfrequent dosing regimen.

Material Topic Drug Discovery and Life Science Collaborations

Malaria

LiveDesign:
Enabling Global Collaboration
To advance successful collaboration acrossglobal health initiatives, we make our LiveDesign
platform available to selected philanthropic
collaborations. LiveDesign is an enterprise
informatics platform that enables teams
to rapidly advance drug discovery projects
by collaborating, designing, experimenting,analyzing, tracking, and reporting data in acentralized environment.

19Company Culture and
Employee Engagement
Schrödinger Definition: Our colleagues share a sense of purpose to make the world a better place. We foster an environment where bright,
capable people are engaged, challenged, and encouraged to take risks and explore an array of development opportunities.

value to our company•

Helps attract a highly skilled workforce in
a competitive talent marketplace•

Contributes to high retention and low employee turnover•Equips employees with skills and expertisefor a career at Schrödinger•

Encourages every employee to makepositive contributions and take risks•

Empowers employees to develop and expand their skill sets

Prioritizing Company
Culture and Employee
Engagement

value for the world•

Creates a foundation for employees to help solve
some of the world’s biggest challenges•

Exposes a wide range of people to thepower of computational chemistry• Fosters job satisfaction, which may positively influence
how employees engage at home and in their communities•

Equips people with skills that can translate
to endeavors beyond Schrödinger

Cultivating an Empowered TeamRegardless of title or tenure, every Schrödinger employee is expected andencouraged to contribute positively to our mission and core principles. Whether
someone is newly hired or has been with the company for decades, whether they

are a scientist, accountant, developer, or administrator, and wherever they sit in
the world, our principles apply to all of us. Our ongoing recognition as a great place
to work is a result of that shared understanding. 20

Earning Recognition for
Being a Great Place to Work

Building a Pipeline of Innovators
More than 43% of our employees hold a Ph.D., andmore than half of the company’s workforce is directly
involved in research and development (R&D). Our
approach to identifying and recruiting the right talent
has been instrumental in supporting our strategic
objectives. For more detailed information on employee
demographics at Schrödinger, please see Page 28.
Developing our platform requires a deep understandingof physics, chemistry, and computational modeling.
We carefully tailor our diverse recruitment
efforts to ensure that we are reaching applicants
who possess this specialized expertise andhave an interest in a career at Schrödinger.
One of our more consistent and successful recruitment
strategies is tapping into our existing employees’
networks to identify additional talent in the industry.
We also have, and continue to build, relationships
with professors at computational chemistry labs
across the country to identify prospective talent at theundergraduate, graduate, and postgraduate levels.
We also maintain a strong presence at industry
conferences to develop relationships with prospective
hires. Further, we post open positions on industryspecific online job boards to ensure we are reaching
relevant talent, regardless of geographic constraints.
Our Strategic Growth team utilizes a standardized
interview model to reduce unconscious bias andcreate a consistent hiring process. Our hiring teams
discuss job requirements in depth, review questions inadvance, and assign competencies for each interviewer
to evaluate. With this comprehensive approach, we
aim to construct a fair, universal standard by which all
candidates may be evaluated.
We train our hiring managers to avoid the mostcommon recruitment pitfalls, help hiring teams
proactively challenge biased or discriminatory thinking,and ensure an equitable hiring process.

Built In's 100
Best Places toWork 2023

100 Best
Places toWork 2023

USA

NYC

San Diego

NYC

New York

X https://www.
crainsnewyork.com/
awards/best-placeswork-2023#3 Midsize#5 Overall#1 Midsize#2 Overall#2 Midsize#3 Overall

Material Topic Company Culture and Employee Engagement

 Our employees have their choice of many organizations
where they can pursue their career aspirations. They choose ourorganization for its supportive, collaborative, innovative, andpurpose-driven environment. We seek out the most talented
people who are truly driven to make a difference in the world.
We retain them with personal support, while also offering theprofessional and technical learning and development they need.

#67 Overall#36 for
Large Companies

Boston#2 Midsize#3 Overall
X https://builtin.com/
awards/us/2023/
best-places-to-work21

Our Core Principles

We are driven

to be the world leader intransforming drug discovery
and materials design byrelentlessly pursuing scientificand technology breakthroughs.

We deeply value

our dedicated employees,
and invest in their growth,development, and well-being.

We pursue

a diverse, equitable, andinclusive workplace where
teamwork and collaboration
are valued, and open,
respectful debate is welcomeand encouraged.

Schrödinger’s computational platform and drug discovery anddevelopment efforts rely on people in high demand with specializedskill sets. We also sit at a cross-section of industries – software andbiopharma – both known for fierce competition for talent. In the faceof this, we are pleased to report that Schrödinger maintains highretention and low turnover rates. At the end of 2023, our employee
retention rate was approximately 93%.

We are committed

to achieving the best possible
outcomes for our customers,
partners, patients, and otherstakeholders.

We help and support

each other, generously andwith compassion.

We believe we achieve these results due to our collaborativeand innovative culture, learning and development opportunities,
commitment to DEI (see Page 24), and care for our employees (seePage 30). We support a fluid and flexible work environment thatallows employees to meet their needs while contributing to thecompany’s success.

Conferences and Networking:Recruiting Through a DEI Lens
Schrödinger maintains an active presence atindustry conferences to build name recognition andrecruit diverse talent. In 2023, we reached morethan 35,000 attendees through our participation at:•

The Society for Advancement of Chicanos/Hispanics
and Native Americans in Science (SACNAS) National
Diversity in STEM Conference•

The Grace Hopper Celebration of Women in
Computing, the world’s largest gathering of womenand nonbinary technologists•

The National Organization for the Professional
Advancement of Black Chemists and Chemical
Engineers (NOBCChE) Annual Conference

We strive

to do the right thing, applying
the highest ethical standards toour work and always considering
how our actions impact
individuals and communities
who depend on us.

Material Topic Company Culture and Employee Engagement

Inspiring Our Talent:
Development and Retention
at Schrödinger

22

To support learning, growth, and mobility throughout
the company, we offer a wide range of opportunities for
employees at all levels of seniority.
For those looking to broaden their scientific orengineering skills, we offer unique opportunities for crossdepartmental rotations into our development and life
science teams. Each rotation typically lasts three months
and allows employees to learn new skills or build upon
existing capabilities while completing important scientificand technical deliverables that support Schrödinger’s
goals. Employees have periodic opportunities to rotate on
and off dynamic cross-functional project teams outside of
specific science and software assignments for additional
exposure to new departments and capabilities.
Internal-led development programs are also available
to support the needs of each department, such as the
Schrödinger therapeutics group Project Leadership
Workshops, which include leadership development andcoaching. Employees are also encouraged to attend
conferences and publish work in scholarly journals,
provided such publications do not disclose confidential
information or information pertaining to inventions that
may be the subject of future patent applications.
Schrödinger Online Courses. All employees have fullaccess to Schrödinger Online Courses for free as a way toquickly onboard to a role, learn about our technology, andassist with ongoing professional development.

Mentorship. Schrödinger offers mentorshipprogramming that goes beyond direct job skills. We
deliberately pair employees from different departments
and locations within the company with the goal ofholistic personal and professional development. We also
encourage reverse mentoring, based on the belief that
senior level colleagues can benefit significantly from theknowledge and skills of their more junior counterparts.
Online Learning. Employees have access to courses
through an online learning platform with more than
9,000 courses, including hard and soft skills on topics
such as leadership and management, softwaredevelopment, programming, and more. To optimize
the offered curriculum for employees, we have createdcurated Learning Paths partnered between Human
Resources and the business.
Staying in Touch. Schrödinger has a variety ofcommunication channels that allow employees tostay informed and connected. These include quarterly
all-employee meetings, management meetings, andmultiple chat groups for employees to receive updates
and ask questions.
We also conduct an annual global engagement survey andshare a summary of the results with the entire company.
Then we work with regional and team managers to ensurethat we are celebrating and reinforcing our strengths, andmaking improvements where needed.

Reviewing Performance
Schrödinger’s performance review process emphasizes employee engagement and fosters
a high-achieving culture. We stress regular connections and real-time feedback between
employees and their managers to help achieve performance goals and give employees
the opportunity to solicit peer and leader feedback. In 2023, 42% of employees submitted
nominations for peer feedback, and 100% received a year-end performance review.

In the last survey conducted in August 2023, employees
rated the following areas as having a high impact on
engagement:•

Career opportunities•

Confidence in managers and leaders•

Opportunities for learning and development•

Recognition for contributions and performance“Schrödinger offers an inspiring
environment, and the people arefrom such diverse backgrounds
and varying levels of experiencethat there’s something new
to discover every day. I get tointerface with many different
disciplines. We’re not confined to“boxes” based on our positions,and I think that’s what makes
Schrödinger so unique.”Material Topic Company Culture and Employee Engagement

Ongoing Learning and Development— Nikita Abraham, Ph.D., Structural Biologist

42%

of employees
submitted nominations
for peer feedback

100%

received a yearend performance
review
23

Diversity, Equity, and Inclusion (DEI)
Schrödinger Definition: True innovation requires diversity of backgrounds, inclusion of varied perspectives, and equity among voices. Schrödinger iscommitted to advancing DEI within our company and in societal institutions. This approach is both beneficial for our company and is the right thing to do.

value to our company•

Ensures that all employees feel safe,
comfortable, and valued in the workplace•

Supports talent acquisition and retention efforts•

Facilitates more creativity, unique approaches,
and improved problem-solving•

Allows employees’ voices to be heard

value for the world

Advancing DEI
Commitments•

Creates career opportunities for historicallyunderrepresented groups••

Builds a community of strong advocatesworking toward a more inclusive society

Helps ensure diverse representation in clinical trials

Realizing New Possibilities Through DEI
Advancing DEI within Schrödinger and in our talent pipeline is a business imperative.
Pushing the boundaries of what is possible in science requires a remarkably
dedicated, creative, and collaborative team from a wide variety of backgrounds.

Our DEI philosophy is focused on ensuring that our employees feel safe, heard,
comfortable, and valued. By embracing our people and their diverse backgrounds,
opinions, and ideas, we empower them to take action, ultimately fostering morecreativity, novel ways of thinking, better problem-solving, and greater perspective
within our organization.

24

— Michelle Byington, Vice President, DEI and Strategic Growth

Our DEI Council:
A Venue for All Voices

Building Psychological Safety at Schrödinger
Throughout 2023, the DEI Council hosted psychologicalsafety roundtables for each of the Asia offices,highlighting the importance of creating a work
environment where employees feel safe to take risks,
share concerns, and offer alternative solutions without
fear of retaliation or negative repercussions.

Material Topic Diversity, Equity, and Inclusion (DEI)“Because DEI is such a business imperative
at Schrödinger, our team meets regularly
with our CEO.”Our DEI Council, a select group of senior leaders, ERG representatives(see below section), and passionate employees, meets monthly to adviseon the company’s DEI strategy, priorities, and goals. The Council also
regularly seeks feedback from employees to improve DEI programmingand provides a permanent forum for voices to be heard across all levels of
the organization.

Embedding DEI Through Employee
Resource Groups (ERGs)
Schrödinger’s ERGs provide support and sharing of resources while
representing and communicating the interests of a particular ERG and its
allies to the company. These groups provide a safe space for those who
self-identify with certain groups and allies and serve as a vehicle for action
throughout the company.
Membership in our six ERGs directly comprises approximately one-thirdof our employees and provides an environment for community support,
professional development, and educational opportunities for our entire
employee population. Our ERGs are also involved in recruiting diverse
candidates and participating in industry conferences, extending theirreach well beyond Schrödinger.

25

Our six ERGs provide safe and equitable spaces for employees to advance inclusivity,
create opportunities for education and awareness, and contribute to ongoing business objectives.

Caregivers and Parents ofSchrödinger (CAPS): Provides

Schrödinger Allied Sexualities
Society (S.A.S.S.): Acts as a resource

Schrödinger People of Color (SPoC):

Schrödinger Gender Equity (SGE):

International Community ofSchrödinger (ICS): Formed to bring

Healthy Minds Alliance (HMA):

resources to parents and other
employees acting as caregivers to help
manage the challenges they face.

Founded to provide a space for bringing
to light and discussing issues specific tounderrepresented genders in the workplace,with the focus on advocating for consistentand lasting improvement within ourorganization and our greater community.

for LGBTQIA+ employees and their allies
by building community, raising awareness,engaging in meaningful discussion, andpursuing the ways in which Schrödinger can bea more diverse, inclusive, and innovative space.

together international employees and theirlocal allies to offer practical, cultural, andemotional support, providing opportunities for
those away from “home” to build community.

Seeks to create a community of people
dedicated to increasing knowledge andsensitivity to race- and ethnicity-centeredissues in the workplace and create safe
spaces to highlight the voices of employeesof color and their communities.

Material Topic Diversity, Equity, and Inclusion (DEI)

ERGs: Advancing DEI at Schrödinger

Dedicated to harnessing our employees’ best
selves, developing proactive and reactive
mental wellness resources, and fostering a
sense of belonging for minds of all kinds.

26

Schrödinger has partnered with the NeuroLeadership
Institute (NLI) to develop a program centered around acustomized DEI Starter Kit, a course designed to equip
our employees with critical tools and language to talkabout inclusion, bias, and leveraging a growth mindset in
the workplace.
The initiative began as a pilot program that engaged ourentire leadership team, DEI Council, Human Resources
team, leaders of our ERGs, and others and has since
expanded globally.
The program now includes weekly learning modules that
include quick videos and a series of practice tools thatparticipants work on together with their cohort groups.
The courses are easily understood and involve practicalapplication, encouraging experiential learning throughrepetition. As the courses progress, they also include live
webinars with an NLI facilitator, as well as a facilitatedpractice session with a Schrödinger employee who has
already taken the course.
As of the end of 2023, approximately 380 Schrödinger
employees have engaged with the DEI Starter Kit andassociated advanced learning opportunities.

Ensuring Patient Centricity andDiversity in Drug Discovery
At Schrödinger, putting the needs and priorities of patientsfirst is essential to our aspirations to improve all areas ofthe drug discovery process. Race, ethnicity, age, gender,and other demographic factors can all play a role in how
someone responds to a medicine. Striving for diversity inclinical trial participants is necessary for creating safe andeffective drugs — for everyone.

Contributing to a More Transparent
Clinical Research Process
As Schrödinger expands its proprietary drug development
efforts, we are committed to improving access to
information and expanding education on the drug
development process. Our Policy on Clinical Trial
Transparency and Subject Protection, to be published in
2024, outlines our commitment to publicly posting ongoingclinical trials, sharing trial results, and adhering to industry
best practices and regulatory requirements.
All applicable clinical trials are registered on publicly
accessible clinical trial registries, such as ClinicalTrials.gov for
U.S.-based trials and the European Clinical Trials Database(EudraCT) in the European Union. In addition to sharing
data directly with patients, we plan to publicly disclose
results after each trial concludes, regardless of whether
they were successful, inconclusive, or negative. We also
publish results, as applicable, via submissions to reputablejournals and publications.

Supporting Equity in STEM
In early 2023, Schrödinger hosted 20 college students on-site
at our New York City headquarters for “Hacking the Gender
Stack,” a two-day annual hackathon and networking event
for women and nonbinary engineers. Following the event,
Schrödinger extended internship offers to five attendees.
In May 2023, we continued our recruitment efforts witha symposium, "Catalyzing Gender Equity at Schrödinger:
Early Careers in Computational Sciences," aimed at womenand nonbinary scientists and Ph.D.s. The two-day event
included an overview of current research and development
projects at Schrödinger, an interactive molecular modelingworkshop, an employee panel featuring some of ourfemale scientists and software developers, and resume
workshop sessions.
In addition to hosting events at our offices, we have apresence at innovative conferences throughout the year.
More information is on Page 22.

Investing in Employee
Mental Health
All Schrödinger employees
have access to mental healthresources through a leading
provider, including therapy,
guided coaching, and self-carestrategies to navigate stress,
anxiety, depression, and othermental health challenges.
In 2023, we introduced a Noticing
and Responding workshop in
partnership with Lyra Healthfor people managers to learn to
identify the signs of employees
struggling with their mental
health. The session introduced
warning signs to look for,proactive strategies to monitor
employee mental health, andtools to navigate conversations
with direct reports.

Material Topic Diversity, Equity, and Inclusion (DEI)Starting Off on the Right FootAs part of our overallcommitment to employee mental
health, Healthy Minds Alliance,
Schrödinger’s mental healthfocused ERG, works closely with
its executive sponsor, our Chief
Information Officer, to advance
psychological safety, better ways
of working, and mental healthresources across all levels of theorganization.

27

As of Dec. 31, 2023

Global Full-time Workforce

Global Workforce

Number of Employees

by Region
1.5%

885

Ph.D.

1%

Total
employees

97.5%

43.5%

863

Full-time
employees

13Part-time
employees

385

Employeeswith a Ph.D.

9

Fixed-term
employees**An employee whose employment with Schrödinger is for a fixed period of time.

Management | All Other Full-time Employees (Global)

United States

18.2% | 157

India

4.5% | 39

Germany

2.8% | 24

Japan

1.9% | 16

United Kingdom

1.2% | 10

France0.7% | 6

South Korea

0.1% | 1

IrelandManagement | All Other Full-time Employees (U.S. Only)

Gender†Demographics and job
categories defined underEEO-1 reporting guidelines

Race/Ethnicity

129 (62.9%) | 436 (66.3%)

Male

70.6% | 610

Material Topic Diversity, Equity, and Inclusion (DEI)

Workforce Metrics†

100

Total = 565

80
Percentage (%)

74 (36.1%) | 214 (32.5%)

FemaleTotal = 288

0 (0%) | 3 (0.5%)

Nonbinary

Total = 3

2 (1.0%) | 5 (0.8%)

Not Disclosed

60

112

256

40

39

122

20

4

Total = 7

0

100

200
300
Employees

400

500

600

0

White

Asian

11

Hispanicor Latinx

317Black orAfricanAmerican01AmericanIndian/AlaskanNative01NativeHawaiianor Other
Pacific
Islander720

Two or
More
Races

4

13

Not
Available/
Not
Disclosed28

As of Dec. 31, 2023

Global Workforce

Global Workforce

Turnover and Retention Rates

New Hires by Gender
89 (60.1%)

Male

57 (38.5%)

FemaleNonbinary

0 (0%)

Not
Disclosed

2 (1.4%)
0

4.6%

93.3%

Employeeretention rate

2.1%

Voluntary total
turnover rate

Involuntary total
turnover rate

Material Topic Diversity, Equity, and Inclusion (DEI)

Workforce Metrics† (Continued)

50
100
Employees

Voluntary Turnover Rate by Position

0.12%

Executive/senior
managers

1.34%

2.68%

Middlemanagers

Professionals

0.49%
All
othersDemographics and job categories defined under EEO-1 reporting guidelines†

29

Employee Well-Being
Schrödinger Definition: Working toward the best interests of our colleagues is also in the best interest of our company. We offer competitive benefits and other targeted
support to ensure that our colleagues are well cared for. We place a high value on work-life balance and the importance of mental, physical, and emotional well-being.

value to our company•

Supports employees’ mental, physical,
and emotional well-being•

Helps employees bring their best selves to work•

Boosts reputation as an employer ofchoice for prospective talentvalue for the world

Promoting Employee
Well-Being••

Enables employees to provide for
their families and loved ones

Creates better work-life balance with advantages
that extend to family and friends•

May positively influence how employees
engage at home and in their communities

Celebrating Our People
Schrödinger appreciates the contributions and creativity of our employees and provides a best-in-class work environment. We recognize that people
thrive when they are part of a community of wellness, belonging, and support. That is the environment we work hard to cultivate.

30

Schrödinger recognizes the value of in-person
collaboration and relationship building, while
also being mindful of the needs and priorities our
employees have outside of the workplace. We havelong supported a hybrid work schedule, and our
employees have the option of working remotely
three days per week. This allows employees todevelop a work schedule that best suits theirindividual needs.

Material Topic Employee Well-Being

Supporting WellBalanced Lives

Each of our U.S. offices provides wellness
sessions on a rotating basis that may include
cardiovascular fitness classes (offered in person
and virtually), virtual yoga classes, meditation,and more. Our teams also plan social eventsin and out of the office, including volunteer
opportunities, get-togethers, and team building.
To facilitate connections throughout our global
employee population, we continued our thirdyear of RandomCoffee, a platform that randomly
matches colleagues across departments andoffice locations for introductory coffee chats on abiweekly basis.

31

Schrödinger provides an array of benefits designed to advance the health and well-being of our employees and support their diverse and evolving needs.

Mindful Return.
Our enhanced Mindful Return platform helps new parents find thebalance between dedicated caregiver and empowered employee as
they return to the workplace. The four-week, cohort-based programprovides a safe, private online space for new parents to connect
and support one another in their new life stage. In 2023, we addeda Mindful Return 201 course to our program offerings to support
working parents who are past the parental leave phase, but may still be
struggling with work-life balance.

Travel Reimbursement for
Reproductive Healthcare.
Schrödinger will provide up
to $4,000 in travel expense
reimbursement to all
benefits-eligible employees
and their dependents whoneed to travel to a different
state to receive access to
reproductive healthcare.

Compassionate Leave.
We offer up to five days of
paid leave if an employee(or employee’s spouse/
partner) experiences a failed
fertility treatment, failed
surrogacy, or a miscarriage,or to travel for reproductive
healthcare, irrespectiveof whether it is deemed
medically necessary.

Family Care Benefits.
All benefits-eligible
employees now haveaccess to Care.com, theworld’s largest online
network of backgroundchecked caregivers forlong-term, short-term,
and backup care, allowing
our employees to manage
their family care needs andprofessional obligations.

Vaccination Leave.
We also offer all benefitseligible employees annual
Vaccination Leave to obtain
vaccinations and recoverfrom any side effects.

Mental Healthcare.
We introduced mental
healthcare from Lyra Health
to offer our benefitseligible employees andtheir dependents access toconfidential support options.
These include therapy,
guided coaching, andself-care apps to navigate
issues like stress, anxiety,depression, substance use,or other challenges.

Paid Leave for COVID-19.
As part of our commitment tosupport a healthy workplace, we
continue to offer paid leave for
employees who have been inclose contact or tested positive
for the virus to quarantine,
recuperate, and recover fromCOVID-19. Employees who areparents can use their COVID-19
leave to accompany theirchildren to receive COVID-19
vaccines and/or boosters.

Holistic Health Benefits.
Acupuncture services
are now covered under
Schrödinger’s medical planfor enrolled employees.

Pet Care Benefits.
To provide increased
flexibility for employees
returning to the office orparticipating in businesstravel, we have expanded
our Care.com offerings toinclude Pet Backup Care.

NEW

Infertility Benefits.
As part of Schrödinger’s
medical plan, an enrolled
employee’s healthcare
plan will cover services forthe diagnosis and surgicalor medical treatment ofinfertility.

NEW

Tuition Reimbursement.
Full-time Schrödinger
employees are eligible forreimbursement for tuition
costs associated withcourses and degree paths
related to their current
position at Schrödinger, up
to $3,000 annually.

Material Topic Employee Well-Being

Expanding Employee Benefits**Stated benefits apply to U.S. employees

32

Academic and Community Outreach
Schrödinger Definition: As a company, Schrödinger believes in working toward the greater good. We participate in research collaborations focused on
critical public health needs, and we offer our platform to certain stakeholders, like academics, at substantial discounts. We also work with universities andK-12 schools to further STEM education and careers. Additionally, we offer an employee matching gift program and paid time off for volunteering.

value to our company•

Empowers employees to contribute tocauses they are passionate about•

Creates a talent pipeline of prospective
employees at all levels•

Aids employee engagement and job satisfaction•

Exposes employees to new perspectives
and ways of working

value for the worldEngaging in Academic andCommunity Outreach•Contributes to a more educated society••

Provides educational opportunities in STEM•

Generates awareness of opportunities
within computational chemistry••

Sparks early interest in science

Creates immersive opportunities forpeople at the postdoctoral level

Supports vulnerable populations in our local communities

Building on Our Strong Commitment to Education and Community Enrichment
Schrödinger has a long-standing history of giving back that has focused heavily on
educational outreach and engagement at all levels, from K-12 through post-graduatelevels. We believe that increasing access to education raises the quality of life for

all and provides the STEM fields with a continuous, diverse pipeline of potential
talent. In 2023, we enhanced our efforts to support employees in making a positive
impact in their communities, addressing critical needs in addition to education.

33

Material Topic Academic and Community Outreach

Educating the
Next Generation
At Schrödinger, we believe that our uniquecomputational platform can help spur a fascination
with STEM. We place a strong emphasis on outreachand STEM education efforts, working with academic
institutions from elementary schools to graduate
programs to spread awareness of careers in technology
and the sciences, and to ensure the next generation ofscientists have the necessary skills to succeed.
The Joy of Science. In grades K-12, our efforts
center around making science fun and accessible
to encourage interest in STEM careers. One way wesupport this is through our work with Skype-a-Scientist,an educational program that connects scientists withclassrooms around the globe. The program aims tospark students’ interests in the sciences from a young
age and break down the barriers to considering acareer in the field. Schrödinger volunteers highlightcomputer-aided drug and materials design to illustrate
how we accelerate the research process and bringmolecules to life on the computer — no expensive
laboratory equipment required.
Connecting with Future Scientists. Schrödinger was
thrilled to be a sponsor of the inaugural Biochemistry
Literacy for Kids summer camp, which brought
together approximately 100 people from around theworld, including about 40 students ranging from 1st
to 10th grades. These students used Schrödinger’s
PyMOL molecular visualization system as part oftheir extracurricular or homeschooling activities.
The summer camp forum gave these students theopportunity to come together for the first time tomeet their peers using PyMOL. This week-long event
allowed students to put their learning into practice withexperiments, games, and a chance to present theirscientific research at Princeton University. Schrödinger
participated by making a financial contribution,
presenting, speaking with students, and being part ofthe student-led research symposium.

Supporting Teachers
In addition to our student-focused outreach, we also
work directly with educators to build awareness about
computational molecular modeling.
Due to the success of our annual Educator’s Day
event, and the increased interest in incorporating
molecular modeling into the classroom, we
expanded this initiative to a multiday event in 2023,
renaming it “Educator’s Week.” We also added anin-person component for the first time, allowing
educators to meet, network, and learn from eachother at our New York City headquarters. This
past year, 355 people attended the two-day virtual
sessions and heard a keynote talk from Dr. Alain
Viel of Harvard University’s LabXchange, and 17
other talks from speakers around the world. The
in-person workshop included the world premiereof PyMOL 3 (beta), a fully redesigned version of thewidely used molecular visualization software. The
workshop allowed the 42 in-person participants toaccess PyMOL 3 for hands-on learning.

Setting the Platform for Education. In 2023, wecompleted the second year of our Teaching with
Schrödinger program, which adds industry-grade
computational tools to school curriculums througha web-based version of our computational platform.
Guided by 18 free lesson plans aligned to national
and international learning standards, educators andstudents are empowered to create and interact with
3D molecular structures, understand how molecularphysical and chemical characteristics are predicted
on a computer, and see how these predictions
impact multidisciplinary scientific progress.
Educators can purchase access to a web-based
version of our software to enable easy access forstudents at a very low cost. This allows teachers tocreate their own lesson plans and use Schrödinger
software flexibly in their classes for teaching purposes.
In 2023, 844 students and teachers in 33 classes
used Teaching with Schrödinger to integrate industryleading molecular modeling into their learning.

34

In 2023, Schrödinger and two City University of New
York (CUNY) institutions — New York City College ofTechnology (City Tech) and LaGuardia Community
College (LaGuardia) — were co-awarded a $1 million
National Science Foundation grant to increase access tocomputational molecular modeling education.
The goal of this grant is to help increase access forunderrepresented students to industry-leading
technology and paid internships to prepare them forcareers in drug discovery. The three-year grant will
support approximately 480 STEM associate degree
students from LaGuardia and up to 240 Biomedical
Informatics bachelor's degree students from City Tech.
Of these groups, 30 students will have the opportunity
to intern at Schrödinger. The programming of thisgrant was designed to increase entry points into drug
discovery careers by enhancing student participation at
multiple levels on the pathway from community college
to a four-year institution to the workforce.

Mobilizing Our People for Positive
Community Impact
A cornerstone of our company culture is empowering employees to be a positive force in our local
communities and worldwide. We encourage our employees to get involved and give back through a variety ofcompanywide initiatives, office programs, and individual efforts.

Maximizing Opportunities for
Employee Impact

Launching Our Global Social
Impact Policy

Building upon our preexisting offerings, suchas our matching gift program and annual paid
volunteer day benefit, Schrödinger released a newsocial impact platform for employees in 2023. It
consolidates all matching gifts and volunteering
activities globally, provides employees with accessto local volunteer opportunities, and is available
in all local currencies and languages. The system
will facilitate easier access to these benefits, while
enabling more granular tracking across our activities.

This year, Schrödinger launched its first Global Social
Impact Policy. The policy was created to provide a
cohesive corporate strategy for social impact initiatives
around the world, as well as consistent guidance on how
employees can get more involved. The policy covers
both giving and employee volunteerism.
Priority Areas. A core component of the policy
highlights Schrödinger’s priority areas: Healthcare,
STEM Education, Technological and Scientific
Innovation, and Disaster Relief. We feel that ourexpertise and collective skill set stands to make thegreatest impact across these areas of focus.

Forging New Paths
To help equip the next generation of college graduateswith critical skills, Schrödinger collaborates with
LabCentral Ignite’s Career Forge program. This 80-hour
introduction to basic lab skills is geared toward recent
STEM-curriculum graduates, particularly students ofcolor who are underemployed or unemployed in theirfield study due to a lack of experience or technical skills.
Schrödinger leads presentations for these “Forgers”
on the fundamental concepts of drug discovery anddevelopment, helping expose students to a broad rangeof careers in healthcare delivery. Schrödinger worked
with three cohorts from LabCentral Ignite’s Career Forge
program in 2023.

Material Topic Academic and Community Outreach

STEM Career Path Opportunities

The Dual Components of Our Social Impact Strategy
Giving:Volunteering:•

Corporate Giving•

Paid Volunteer Time Off•

Matching Gifts•

Business-based Volunteering•

In-kind Donations•

Employee-led Initiatives

35

In 2023, we increased participation in volunteer and mentorship opportunities across a variety of schools and independent STEM programs and contributed tocharitable sponsorships across education and healthcare. We look forward to seeing the full expansion of our program in 2024.
STEM EDUCATION

Biochemistry Literacy for Kids
Provided materials for their summer
camp, gave a presentation, andattended poster sessions

NOBCChE (National Organization for
the Professional Advancement of Black
Chemists and Chemical Engineers)
Donated resume review service by our
Head of Recruiting and a Schrödinger
online certification course

Brooklyn Technical High School
Science (BTHS) Olympiad Team
Sponsored build materials and supplies
to the BTHS Science Olympiad Team fortheir 2024 competition year

ORTOP (Oregon Robotics
Tournament and Outreach Program)Sponsored robotics programming forstudents in grades 2-12

HEALTHCAREThe Child Center of NY
Sponsored and packed 130 backpacks
with school supplies for students

Montgomery County Science
Research Competition
Sponsored competition to provide prize
money for winning students

SeriousFun Children’s Network
Sponsored medical specialty camps,
provided to children with serious illnesses
and their families free of charge

Leukemia and Lymphoma Society (LLS)
Employees in New York City and Boston
joined together to fundraise and walk for
LLS’ annual Light The Night event

Material Topic Academic and Community OutreachOur 2023 Activities

Stuyvesant High School
Presented Structure-Based Small Molecule
Drug Design hands-on software lesson

HYPOTHEkids
Ran Python boot camp forunderrepresented students in STEM

Portland Science Festival
Hosted booth to engage children inscience experiments

Advancing the Industry

Supporting Our Communities

In 2023, Schrödinger joined MassBio (Massachusetts Biotechnology
Council), a not-for-profit organization that represents and provides
services and support for the Massachusetts biotechnology industry.

To help address inequities in our communities, in 2023, Schrödinger became amember of Life Science Cares in New York, Boston, and San Diego to promote
community engagement, STEM education, and opportunity for all.

36

Environmentally Beneficial Solutions
Schrödinger Definition: Our computational platform is transforming the discovery of high-quality, novel molecular solutions for drug
development and materials applications. By consuming far fewer chemicals, compounds, and resources than conventional methods andsupporting the development of new materials, we aid our customers in reducing their own environmental footprint.

value to our company•

Generates income for the company
and value for shareholders•

Provides opportunities to apply Schrödinger’s
platform in new and different ways•

Reduces the environmental impact of in-housedrug and materials discovery efforts by reducing
chemical use and energy requirements•

value for the world

Offering Environmentally
Beneficial Solutions•

Helps customers reduce their own environmental impact•

Reduces global energy consumption,
carbon emissions, and waste••

Enables recycling, reuse, and otherbeneficial disposition of materials

Contributes to longer-lasting, more sustainable materials

Produces smarter approaches and product formulations

Driving Sustainable Discovery for Next-Generation Materials and Human HealthA growing global population and increased industrialization has placed significant
strain on the world’s finite resources. At Schrödinger, the work of our teams helps toprotect the planet by making chemical discovery faster and less resource-intensive.
The development of molecules, high-performance materials, and medicines have
two main characteristics in common: They are highly resource-intensive and havetraditionally required significant trial and error to create. Whether through new andbetter materials that help reduce energy use and carbon emissions or by drasticallyreducing the time, resources, and number of chemical compounds tested in order tocreate new medicines — Schrödinger helps our customers shrink the environmental
footprint of their products and processes. 37

In drug discovery, our platform helps pharmaceuticalcompanies test potential new drug candidates
in a digital environment. By increasing the useof predictions, we can use fewer chemicals andsynthesize only the most promising molecules forevaluation in a traditional wet lab setting. This enables
our customers to bring potentially life-altering andlifesaving treatments to the clinic faster and with lessenvironmental impact.
Schrödinger is also helping industry and academic
partners to identify and develop materials designed tohave a finite and application-specific service life or be
more recyclable. Our quantum mechanics tools allow
us to assess the chemical stability of different bonds
in materials to determine how they will break down.
Along with the benefits for the environment, recycling
certain materials can also result in reduced costs.
Through our platform, we are enabling expanded
modes of materials recycling, developing highperformance materials derived from sustainablesources, reducing energy consumed and waste
produced in various industrial processes, andincreasing the performance of rechargeable batteries
and how they store energy. We’re helping the world
think smarter — and more sustainably.

Lowering Production Barriers
via Catalysts
Schrödinger enables customers to design alternative
catalysts that reduce the energy required for chemical
reactions. With our platform, customers can developthese improved catalysts with fewer experiments andless resources, leading to more efficient chemical
processing, reduced energy consumption and a lower
environmental footprint.

From Petro to Bio: Making More
Sustainable Materials
In every sector and every market, companies andconsumers are reassessing their reliance on fossil
fuel-based materials in light of the urgent need to
cut carbon emissions and reduce waste. Schrödinger
facilitates that shift by enabling our customers
to move away from petrochemicals and towardbiomanufacturing in their search for materials that are
fit for many different purposes.

“By combining the speed ofmachine learning with theaccuracy of Schrödinger’s
physics-based simulation
methods, Cambrium istapping into a new worldof potential for novel
biomaterials.”— Schrödinger customer, Pierre Salvy,
Head of Engineering, Cambrium

Material Topic Environmentally Beneficial Solutions

 Schrödinger’s computational platform helps
explore formulations for a wide range of materials
used in virtually every industry. For example, bydeveloping new structural polymers, our platform isenabling a shift away from metal-alloy materials andtoward organic-based, lighter-weight materials that
help reduce the energy required to power today’svehicles and aircraft.

For example, German startup Cambrium uses machinelearning algorithms to find novel biomaterials withunique functions that don’t occur in nature. The
ability of Cambrium’s generative AI models to swiftly
design new proteins is greatly enhanced when using
our physics-based modeling to simulate how those
proteins behave under different conditions. With ourhelp, Cambrium is able to develop ingredients for
personal care products with sustainable biomaterials
using a much more resource- and energy-efficient
process.

38

— Schrödinger customer, Dr. Levi Moore, Research Chemist, U.S.
Air Force Research Laboratory

Optimizing Food Development

Material Topic Environmentally Beneficial Solutions“In just one rocket, there are so many
opportunities for new and improved
materials — from low-temperaturerubbers to composite resins withhigher service temperatures thatallow for lightweight, reusable rocket
systems. And the lessons we learn
about these materials can find theirway into other systems, like airplanes,
as well.”

As the world population increases and climatechange threatens to imperil crop yields and othermethods of food production, Schrödinger is acting
on the urgent need for a sustainable supply ofsustenance. Together with our customers, we’releveraging molecular modeling technology to optimize
the food development process, improve food-cycle
sustainability, increase food shelf life with smart
packaging materials, and innovate food-processing
systems. Our simulation tools can help accelerateinnovation in functional foods to help fight obesity,
heart disease, and other chronic diseases withingredients that are both appealing and cost effective
for the industry. These include alternative protein
sources (including plant-based meats), biobased
ingredients, fortified foods, and nutraceuticals.

Lighter Materials forGreener Transportation
By replacing metals with organic polymer
composites, manufacturers in theautomotive and aerospace industries
are creating lighter, more robust, highperforming materials. Schrödinger’s
simulation technology is helping aerospace
manufacturers, like Boeing and the U.S.
Air Force Research Laboratory, develop
new, lighter-weight composites. In thecase of the Air Force, computer modelingand simulation have already been widelyadopted for analyzing aerodynamics.
Research chemist Dr. Levi Moore is taking
a different approach, using Schrödinger’s
computational platform to simulate thestresses of space travel on materials.

39

Operational Environmental Footprint
Schrödinger Definition: We recognize that every business has an environmental footprint. Our footprint centers primarily on the energy we use to run our computational
software, power our offices, and engage in business travel.

value to our company•

Reduces costs and waste•

Demonstrates to employees that Schrödinger lives its values•

Helps protect the health and safety of our employees•

Provides opportunities to collaborate withcustomers and suppliers on impact reduction

Reducing Our
Operational
Environmental
Footprint

value for the world•

Helps to protect and preserve the planet and human health•Helps customers and suppliers gain new
capabilities in reducing their own footprint•

Contributes to a low-carbon future

Prioritizing Healthy, Environmentally Responsible Workplaces
Doing the right thing is a principle ingrained in our company culture. That includes
ensuring our work environments provide inspiration and comfort for employees andare aligned with best practices for minimizing our environmental impact.

While still relatively early in our environmental sustainability journey, Schrödinger madesignificant progress in 2023. We built upon our commitment to greener workplaces,
took steps to better understand our carbon footprint, signaled our intention to establish
science-based emissions reduction targets, and set the foundations for establishing aformal environmental, health, and safety (EHS) function. 
40Advancing Environmental Sustainability in 2023

Carbon-Neutral Computing
Our platform runs on high-performancecomputation, which requires significant
amounts of energy. We are striving to makethese processes as green as possible, even as
we’re pushing them to do more.
We are working to make our in-housecomputational footprint greener and more
efficient. For example, our internal highperformance computing cluster runs on
100% renewable energy. Our next-generation
computational footprint will integrate GPUs
that require 3 1/2 times less power while
delivering twice the performance.
We also access the cloud for a portion of
our computational capacity to boost our
computing power while accessing cleaner
energy sources. We contract with cloudproviders that are increasing their relianceon renewable energy and using ever-more
efficient hardware. For example, the majorityof our cloud computing footprint is hosted oncarbon-neutral providers.

Understanding Our Footprint.
Schrödinger undertook efforts to measure ourenvironmental impact, including establishingbaselines for operational and supply-chain
greenhouse gas emissions, and created an
infrastructure for reporting these emissions for2023 and beyond.

Setting Science-Based Reduction Targets.
With our emissions baseline now established,
Schrödinger formally announced our intention
to establish and report emission reduction
targets aligned with the Science Based
Targets initiative by the end of 2025.

Formalizing an EHS Function.
Schrödinger completed an audit of all
our facilities in preparation for a formalinternal EHS function, which is planned
to be completed by the end of 2024.

Establishing a Formal Environmental Policy.
Schrödinger developed our first Environmental
Policy that sets forth our commitments andmethods for achieving them. This policy applies
to all employees, contractors, and suppliers.

Expanded Our Commitment toGreener Workplaces.
Where possible, as Schrödinger builds out and/or leases new facilities, we have establishedor are working to earn LEED® green building
certifications and related accreditations(see Page 42 for more information).

Greening Our Computing Power.
Schrödinger accesses carbon-neutral cloudcomputing capacity and is committed tocreating in-house computing that is more
efficient and reliant on renewable energy.

Material Topic Operational Environmental Footprint This is in addition to our long-standing
efforts to offer recycling and composting
where we’re able around the world, donate
used office furniture, ensure electronics aredisposed of properly, and limit office printers to
discourage unnecessary use of paper. We also
source supplies and other goods and services
locally whenever possible.

41

Schrödinger is pursuing workplaces around the world that meet the highest standards for environmental sustainability and employee
well-being. We are committed to regularly renewing our LEED®, WELL Health-Safety, and FitWell certifications, as appropriate.

Framingham, MA

San Diego

Seoul

New York City

Cambridge, MA

Tokyo

LEED® Gold designation anticipated in 2024 for our
new 17K sq. ft. lab (Schrödinger’s only wet lab).

LEED® Gold designation received in 2022 for our
100K+ sq. ft. headquarters, and in 2023 for our
27K sq. ft. expansion.

LEED® Gold designation received in 2023 for our
15K+ sq. ft. office.

LEED® Gold designation received in 2022 for our
17K sq. ft. office.

Material Topic Operational Environmental Footprint

Greening Our Facilities

LEED® Certified designation anticipated in 2024 for our
4K sq. ft. office.

LEED® Certified designation anticipated in 2024 for ourcompletely renovated and expanded office space.

42

Schrödinger has an opportunity to reduce our carbon
footprint by using energy more efficiently, both in our own
operations and through computational software provided
to our clients. In 2023, we developed our first greenhousegas (GHG) emissions inventory for our global operations inaccordance with the Greenhouse Gas Protocol. We generate
direct GHG emissions (Scope 1) through stationary andmobile fuel combustion and certain indirect GHG emissions(Scope 2) through purchased energy at our offices.
Our Scope 1 and 2 inventory includes 249 metric tons ofCO2e Scope 1 emissions from fossil fuel combustion and 847
metric tons of CO2e market-based Scope 2 emissions frompurchased energy. Our Scope 3 emissions include 31,431
metric tons of CO2e driven primarily by the energy consumed
by our computational software (Category 11).

2023 Environmental Footprint Data
Energy Consumption
GIGAJOULES (GJ)

Total Energy Consumption (Nonrenewable sources)

12,674Natural Gas

4,869

Purchased Electricity

7,805

Energy Intensity

GIGAJOULES (GJ) PER SQUARE FOOT (GJ/SQ. FT.)

Energy Intensity (Nonrenewable sources)

0.045

Scope 1 and 2 GHG Emissions

METRIC TONS CO2e (MT CO2e)
Gases used in calculation: CO2, CH4, N2O

Total Scope 1 and 2 (Market-based)

1,096

Total Scope 1 and 2 (Location-based)

1,150

Scope 1: Stationary Combustion Sources - Natural Gas

249

Scope 2: Purchased Electricity (Market-based)

847

Scope 2: Purchased Electricity (Location-based)

901

Material Topic Operational Environmental Footprint

Our Environmental Footprint

GHG Emissions Intensity

METRIC TONS CO2e PER SQUARE FOOT (MT CO2e/SQ. FT.)

Scope 1, Scope 2 Market-based and Scope 3

0.11

Scope 3 GHG Emissions

METRIC TONS CO2e (MT CO2e)
Gases used in calculation: CO2, CH4, N2O*Waste: We obtained waste consumption data from landlords and property
managers for four out of 12 sites. For the remaining eight sites where data wasunavailable, we estimated consumption using the MT/square feet benchmark
for known properties.
**Water Usage: We obtained water consumption data from landlords andproperty managers for nine out of 12 sites. For the remaining three sites
where data was unavailable, we estimated consumption using the ML/square
feet benchmark for known properties.

Total Scope 3

31,431Category 1: Purchased Goods and Services + Category 2: Capital Goods

10,762Category 3: Fuel- and Energy-Related Activities

92

Category 5: Waste Generated in Operations

210

Category 6: Business Travel

946

Category 7: Employee Commuting

331

Category 11: Use of Sold Products

19,090Waste* METRIC TONS (MT)Total Nonhazardous Waste

366

Water Usage** MEGALITERS (ML)
Total Water Usage

6.20

43

Ethics, Transparency, and Compliance
Schrödinger Definition: We believe in always doing the right thing. We maintain the highest ethical standards in our interactions with colleagues, partners, and investors
and are compliant with all applicable laws and regulations. We place high importance on being transparent with all of our stakeholders.

value to our company•

Ensures good standing with relevant governmental
authorities and regulatory bodies•

Maintains reputation as a responsible employer•

Provides assurance to customers,
investors, and other stakeholders•

Leads by example and provides structure andguidance for employees and their decision-making

Sustaining a
Commitment to Ethics,
Transparency, andCompliancevalue for the world•

Protects against potential negative external consequences
associated with ethics or compliance breaches•

Models integrity for others in the industry and beyond•

Bolsters stakeholder confidence in Schrödinger

Conducting Ourselves with Ethics and Integrity
Acting with integrity is at the core of everything we do. Building and maintaining
trust with our stakeholders is a business and ethical imperative. The foundational
document that guides our conduct is Schrödinger’s Global Code of Business Conduct
and Ethics (the Code), a document that is updated periodically to ensure businessrelevance and comprehensiveness.

Employees are asked to certify annually they have read and complied (and will continue
to comply) with the Code. As of January 2024, all of our employees had done so. The Coderequires that all Schrödinger employees worldwide follow the outlined standards andcomply with all legal requirements in each country where we conduct business.

44

Reinforcing Our Culture of Ethics
and Compliance

As Schrödinger continues to evolve and expand, we are constantly
evaluating and updating company policies in response to emerging needs,
new regulations, or identified gaps.

At Schrödinger, our commitment to compliance is enterprisewide. We continue to build on
our efforts to develop a centralized compliance function to bring together all subject matter
experts and their individual compliance efforts into one cohesive and comprehensive global
program. As part of this plan, we expanded our internal function and hired a designatedethics and compliance manager in 2023.

U.S. Policy Prohibiting Discrimination, Harassment, and Retaliation.
Our U.S. policy prohibiting discrimination, harassment, and retaliation has
been updated to reflect recent changes in the law and for greater clarity.
Outside Activities. We introduced an Outside Activities and Conflicts Policy
to clearly define acceptable “outside activities” for Schrödinger employees
to engage in outside of their official duties, such as teaching, writing, or
speaking engagements, in order to identify and mitigate any potential or
actual conflicts of interest.

In addition to the policies we already have in place, we are currently developing thefollowing: a Global Equal Opportunity and Anti-Harassment Statement, an Affirmative Action
Statement, and a Supplier Code of Conduct. We also continue to update our existing regional
privacy policies.

Material Topic Ethics, Transparency, and Compliance

Keeping Current: 2023 Corporate
Policy Updates

Consensual Relationships and Drug and Alcohol Use in the Workplace.
To clarify our approach and ensure alignment across our offices
and facilities, Schrödinger introduced formal policies on consensual
relationships and drug and alcohol use in the workplace.
Employee Handbook Acknowledgement. After rolling out several newpolicies and updates, we asked all employees to complete an employee
handbook acknowledgement, ensuring our employees have read,understood, and will comply with Schrödinger’s policies and procedures.

45

Ensuring employees are equipped with the knowledge required to
uphold our high standards for ethics and compliance is a businesspriority. As of the end of January 2024, we recorded completion ratesof 99% or higher across all trainings.
We require training globally on the following key topics:•

Maintaining a Respectful and Harassment-Free Workplace: In 2023,
we added an additional mandatory training session for all people
managers at Schrödinger.

•

Drug Discovery Firewall Policy•

Insider Trading•

Anti-bribery/Anti-corruption (including anti-money laundering)

Material Topic Ethics, Transparency, and Compliance

Educating to Uphold Our
Ethical Standards

Establishing Our Ombuds Office
As a global company with operations in Europe, weestablished our first Ombuds Office to comply withlocal laws and data privacy rules and regulations, aswell as the recently implemented German Supply
Chain Due Diligence Act. The Ombuds Office isa neutral and independent third-party reporting
channel for employees, business partners, customers,
and members of the public to report concerns
regarding Schrödinger’s business activities, suppliers,
compliance with laws and regulations, or humanrights and environmental risks.

46

Responsible Use of Technology
Schrödinger Definition: We recognize that the power of our platform comes with great responsibility. We use discretion when deciding what types oforganizations can license our software, and we have governance safeguards in place to help ensure that it is not used for malicious or questionable ends.

value to our company•

Guards against potential nefarious
uses of Schrödinger’s platform•

Protects Schrödinger’s reputation as a company
that strives to always do the right thing•value for the world

Applying Technology
Responsibly•

Prevents potential misuse of Schrödinger’s platform•

Helps dispel misconceptions about machine learning•

Advances general reputation of the technology sector

Assures employees that the company
is focused on doing good

Guarding Against Misuse
We carefully evaluate all potential partners to help ensure our software will be usedin ways that align with and advance our mission. The use of our platform requires
significant training and technical support from Schrödinger software experts andcomputational scientists. We will refuse to provide such consultation on projects wedeem have the potential to be misaligned with our mission.

We have a policy to refuse to license our software to prospective customers incountries subject to U.S. export restrictions, individuals or entities on a Denied Party
List maintained by the U.S. government, or for the development, production, or use of
nuclear or biological weapons or missions.

47

Technologies like machine learning (often referred to as AI) continue toreceive considerable attention and scrutiny, as media, regulators, andbusinesses explore the impact these technologies might have on the
future of human employment. In its study, The Future of Jobs Report, theWorld Economic Forum predicted that more jobs would be created bythese technologies than lost, especially in skilled fields.
At Schrödinger, we believe that rather than replacing chemists, ourplatform will enable them to be more productive and effective in theirwork. By combining the accuracy of physics with the speed of machinelearning, our computational platform helps chemists design and test theirideas faster, leading to more high-quality ideas generated with less timespent synthesizing compounds.

Material Topic Responsible Use of Technology

Enabling the Work of Medicinaland Computational Chemists

Contributing to Open-Source
Technologies
One aspect of applying technology in a responsible
manner is helping to make it better and moreaccessible to scientists and others, who can use it
for their own benefit, and the benefit of society.
That’s why we contribute regularly to open-source
software initiatives such as the following:•

RDKit, an open-source cheminformatics toolkit•

Fixed Data Table 2, a widely used Javascript web table•

PyMOL, our molecular visualization system offered inboth open-source and commercial versions

Further underscoring our commitment, Schrödinger
also assists with small fixes to approximately a dozen
different and additional open-source projects.

48Intellectual Property
Schrödinger Definition: We have spent many years and have invested substantial monetary resources in developing our computational
platform and other key assets, including our pipeline of proprietary drug discovery programs. It is essential that we protect our intellectual
property so that we can continue to invest, innovate, and return value to our colleagues and shareholders.

value to our company•

Protects Schrödinger technology and innovations•

Gives employees confidence their work is making
a difference to Schrödinger’s success•

Safeguards company innovations for further growth•

Generates value for our shareholders

value for the world

Protecting Intellectual
Property•

Generates value for customers and other stakeholders•

Enables continuation of solutions that improve
human health and quality of life•

Helps ensure the integrity of our technology
when used to further societal needs

Advancing Our Ability to Innovate
Schrödinger’s ability to maintain our position in the market is based in large parton the continued enhancement of our proprietary platform and the pursuit ofintellectual property protection (where applicable) related to the platform, including
relevant improvements and innovations. These protections are also criticallyimportant for the drug discovery candidates using the company's platform, whether
as part of a research collaboration or our proprietary pipeline.

We rigorously protect our intellectual property through timely preparation, filing,prosecution, maintenance, and enforcement of related patent and/or trademark
applications. Patent and trademark protection, directed to various types ofinventions, is pursued on a global basis. In addition, we obtain copyright registrations
for our proprietary platform. We make our platform available at significant discounts
to certain end-users, including not-for-profit entities and organizations, academic
institutions, educators, and life science and drug discovery collaborators. Even insuch instances, the company retains intellectual property rights to its platform andimprovements.

49

Cybersecurity and Data Privacy
Schrödinger Definition: Schrödinger is committed to being a good steward of our own and our customers’ digital data, ensuring that our internal systems and platform aresecure, and that we are operating with the highest levels of integrity. We are compliant with all local and regional regulations related to data and privacy.

value to our company•

Protects data, systems, and platform from external threats•

Safeguards the business and investments•

Enables compliance with regulations andaccepted external standards

value for the world

Committing toCybersecurity andData Privacy•••

Protects clients’ data
Protects personal data

Guards against potential misuse of our platform

Safeguarding Data and Systems
Business and society’s increasing reliance on technology and data has led to vast
amounts of confidential and sensitive information being stored, transmitted, andshared electronically. This information and the systems they rely upon are targets
for cybercriminals who are growing more sophisticated.

Schrödinger’s business depends heavily on the creation and processing ofconfidential and sensitive data. Therefore, it is imperative that we have the necessary
systems, processes, and policies in place to guard against theft or destruction of ourdata, our customers’ data, and that of current, former, and prospective employees.
Our Information Security Department takes leadership on implementing our
cybersecurity policies, processes, and technology in alignment with the National
Institute of Standards and Technology Cybersecurity Framework (NIST CSF). 

50

We also have a Data Protection Officer located inGermany with whom we consult on data protection
issues impacting European Union citizens under
the EU General Data Protection Regulation (GDPR).
In addition, Schrödinger adheres to all local
data privacy regulations, including the California
Consumer Privacy Act, as amended.

Schrödinger’s Cybersecurity Program Functions

Establishment andreview of policies andprocedures aligned with NIST
Cybersecurity Framework 1.1(NIST CSF), audited annually

Development ofcybersecurity incident
response policies, procedures,
and awareness trainings

Compliance with applicablelaws and regulations

Material Topic Cybersecurity and Data Privacy

 While Schrödinger does not process or control
large amounts of personally identifiable informationas part of our core business, we have essential
processes in place to ensure personal data privacy.
All employees are expected to complete an annual
security awareness training to ensure enterprisewide understanding of our policies and procedures.

Penetration tests andvulnerability management

Schrödinger’s
Organizational Firewall
Schrödinger maintains anorganizational firewall that separates
personnel who work on our internal
drug discovery programs from othercustomer data. This enables us topursue our internal drug discovery
and development collaborations
while ensuring the confidentiality
and integrity of customer data.
All employees participate in anawareness training to understandthe importance of this firewall, withmore in-depth training for employees
whose job responsibilities include
working with molecular structures.

51

Reporting Appendix

Reporting Appendix
About This Report
This report references the GRI Standards 2021. We have also included disclosures from the Sustainability Accounting Standards Board (SASB)
Biotechnology & Pharmaceuticals Standard and the SASB Software & IT Services Standard. The report covers data and activities primarily
from our fiscal year ending December 31, 2023 but also includes some information preceding and shortly following that date.

GRI Index
Disclosure

GRI Standards Disclosure Title

2023 Location/Response

General Disclosures
2-1

Organizational details

Schrödinger 2023 Corporate Sustainability Report, About Schrödinger, Page 6
Schrödinger 2023 Annual Report on Form 10-K, Item 1. Business

2-2

Entities included in the organization's sustainability reporting

Schrödinger 2023 Annual Report on Form 10-K, Exhibit 21.1, List of Subsidiaries

2-3

Reporting period, frequency and contact point

Unless otherwise stated, quantitative and qualitative data contained in this report covers our fiscal year ending Dec. 31, 2023.
Some anecdotal information from before and following the reporting period is also included. We intend to report annually on
our Corporate Sustainability performance. For more information, contact:
corporateaffairs@schrodinger.com

2-4

Restatements of information

Not applicable.

2-5

External assurance

Not applicable.

2-6

Activities, value chain, and other business relationships

Schrödinger 2023 Corporate Sustainability Report, About Schrödinger, Page 6; Drug Discovery and Life Science
Collaborations, Pages 17-19; Academic and Community Outreach, Pages 33-36;
Environmentally Beneficial Solutions, Pages 37-39

2-7

Employees

Schrödinger 2023 Corporate Sustainability Report, Schrödinger at a Glance, Page 7;
Diversity, Equity, and Inclusion, Pages 28-29 (Workforce Metrics)

2-8

Workers who are not employees

Schrödinger 2023 Corporate Sustainability Report, Diversity, Equity, and Inclusion (Workforce Metrics), Pages 28-29

2-9

Governance structure and composition

Schrödinger 2023 Corporate Sustainability Report, ESG Governance, Pages 13-15
Schrödinger 2024 Proxy Statement, Corporate Governance, Page 41
Schrödinger Website, Corporate Governance

2-10

Nomination and selection of the highest governance body

Schrödinger 2024 Proxy Statement, Corporate Governance, Page 41

2-11

Chair of the highest governance body

The Schrödinger Board of Directors is led by an independent director.
Schrödinger Board of Directors

2-12Role of the highest governance body in overseeing themanagement of impacts

Schrödinger 2023 Corporate Sustainability Report, ESG Governance, Pages 13-15
Schrödinger Nominating and Corporate Governance Committee Charter

Schrödinger 2023 Annual Report on Form 10-K, Item 1. Business

52

GRI Standards Disclosure Title

2023 Location/Response

General Disclosures
2-13

Delegation of responsibility for managing impacts

Schrödinger 2023 Corporate Sustainability Report, ESG Governance, Pages 13-15
Schrödinger Nominating and Corporate Governance Committee Charter

2-14

Role of the highest governance body insustainability reporting

Schrödinger 2023 Corporate Sustainability Report, ESG Governance, Pages 13-15
The Board reviews the annual Corporate Sustainability report prior to publication.

2-15

Conflicts of interest

Schrödinger 2024 Proxy Statement, Pages 41, 59, 88

2-16Communication of critical concerns

Schrödinger Global Code of Business Conduct and Ethics, Pages 9-13

2-17

Collective knowledge of the highest governance body

Schrödinger 2023 Corporate Sustainability Report, ESG Governance, Pages 13-15

2-18

Evaluation of the performance of the highest governance body

Schrödinger 2024 Proxy Statement, Page 44

2-19

Remuneration policies

Schrödinger 2024 Proxy Statement, Page 50

2-20

Process to determine remuneration

Schrödinger 2024 Proxy Statement, Page 50

2-21

Annual total compensation ratio

Schrödinger 2024 Proxy Statement, Page 71

2-22

Statement on sustainable development strategy

Schrödinger 2023 Corporate Sustainability Report, Message From Our CEO, Page 4

2-23

Policy commitments

Schrödinger 2023 Corporate Sustainability Report, Ethics, Transparency, and Compliance, Page 45(Keeping Current: 2023 Corporate Policy Updates)

Reporting Appendix

Disclosure

Corporate policies at Schrödinger are developed, approved, and embedded at varying levels within the company based on
the policy topic.
Schrödinger Nominating and Corporate Governance Committee Charter
2-24

Embedding policy commitments

Schrödinger 2023 Corporate Sustainability Report, Ethics, Transparency, and Compliance, Pages 44-45 (Conducting
Ourselves with Ethics and Integrity, Keeping Current: 2023 Corporate Policy Updates)
Corporate policies at Schrödinger are developed, approved, and embedded at varying levels within the company based on
the policy topic.
Schrödinger Nominating and Corporate Governance Committee Charter

2-25

Processes to remediate negative impacts

Schrödinger 2023 Corporate Sustainability Report, ESG Governance, Pages 13-15;
Operational Environmental Footprint, Page 40; Ethics, Transparency, and Compliance, Pages 44-46;
Responsible Use of Technology, Pages 47-48
Schrödinger finalized a Supplier Code of Conduct at the end of 2023, and will be rolling it out in 2024. Schrödinger is in theprocess of developing a human rights policy and planning for supply chain audits.

2-26

Mechanisms for seeking advice and raising concerns

Schrödinger Global Code of Business Conduct and Ethics, Page 9
Schrödinger 2023 Corporate Sustainability Report, Ethics, Transparency, and Compliance, Page 45(Keeping Current: 2023 Corporate Policy Updates)
Schrödinger Website, Corporate Governance (Ethics & Compliance Hotline)

2-27

Compliance with laws and regulations

During our fiscal year ending Dec. 31, 2023, Schrödinger was not subject to any material legal proceedings.

53

GRI Standards Disclosure Title

2023 Location/Response

General Disclosures
2-28

Membership associations

American Association for Cancer Research (AACR) • American Association of Pharmaceutical Scientists (AAPS) • American
Board of Toxicology • American Chemical Society (ACS) • American Chemical Society Computers in Chemistry Division(ACS COMP) • American Chemical Society Medicinal Chemistry Division (ACS MEDI) • American Chemical Society Organic
Division (ACS ORG) • American Society of Clinical Oncology (ASCO) • American Society of Hematology (ASH) • Association for
Computing Machinery (ACM) • Basel Area Business & Innovation • BaseLaunch American Association for the Advancementof Science (AAAS) • BioRN • Boston Area Group for Informatics and Modeling (BAGIM) • HESI • IEEE • International Societyof Pharmacometrics (ISoP) • Life Science Cares (NYC, Boston, San Diego) • MassBio • Medicen • New York Area Group for
Informatics and Modeling (NYAGIM) • Royal Society of Chemistry • Sociéte de ChemoInformatique • Society of Toxicology •Southern California Area Group for Informatics and Modeling (SAGIM) • World 50 (Sustainability50 and I&D Impact
Community)

2-29

Approach to stakeholder engagement

Schrödinger 2023 Corporate Sustainability Report, ESG Governance, Pages 13-15; Drug Discovery and Life Science
Collaborations, Pages 17-18; Diversity, Equity, and Inclusion, Pages 24-25; Academic and Community Outreach, Pages 33-35

2-30

Collective bargaining agreements

Globally, 23 employees in Japan and 10 employees in France are covered by some type of a collective bargaining agreement.

Reporting Appendix

Disclosure

Material Topics
3-1

Process to determine material topics

Schrödinger 2023 Corporate Sustainability Report, ESG Governance, Page 16 (ESG Materiality Assessment)

3-2

List of material topics

Schrödinger 2023 Corporate Sustainability Report, ESG Governance, Page 16 (ESG Materiality Assessment)

3-3Management of material topics

Schrödinger 2023 Corporate Sustainability Report, ESG Governance, Pages 13-15
See also, each respective material topic section of this report.

Economic Performance
201-1

Direct economic value generated and distributed

Schrödinger 2023 Annual Report on Form 10-K, Item 8. Financial Statements and Supplementary Data

201-2

Financial implications and other risks and opportunities due
to climate change

Schrödinger 2023 Annual Report on Form 10-K, Risks Related to Regulatory and Other Legal Compliance Matters,
Pages 107-108

201-4

Financial assistance received from government

During the reporting period, Schrödinger did not receive any significant financial support from government.

Indirect Economic Impacts
203-1

Infrastructure investments and services supported

Schrödinger 2023 Corporate Sustainability Report, Drug Discovery and Life Science Collaborations, Pages 17-19;
Academic and Community Outreach, Pages 33-36; Responsible Use of Technology, Pages 47-48

203-2

Significant indirect economic impacts

Schrödinger 2023 Corporate Sustainability Report, Drug Discovery and Life Science Collaborations, Pages 17-19;
Academic and Community Outreach, Pages 33-36; Responsible Use of Technology, Pages 47-48

Anti-corruption
205-1

Operations assessed for risks related to corruption

Partially reported: Schrödinger 2023 Corporate Sustainability Report, Ethics, Transparency, and Compliance, Pages 44-46

205-2

Communication and training about anti-corruption policies
and procedures

Partially reported: Schrödinger 2023 Corporate Sustainability Report, Ethics, Transparency, and Compliance, Pages 44-46

205-3

Confirmed incidents of corruption and actions taken

In 2023, Schrödinger recorded no monetary losses as a result of legal proceedings associated with corruption or bribery.
There were no confirmed incidents of corruption.

54

GRI Standards Disclosure Title

2023 Location/Response

Anti-competitive Behavior
206-1

Legal actions for anti-competitive behavior, anti-trust, andmonopoly practices

In 2023, Schrödinger recorded no monetary losses as a result of legal proceedings associated with anti-competitive
behavior, anti-trust, and monopoly practices.

302-1

Energy consumption within the organization

Partially reported:
Schrödinger 2023 Corporate Sustainability Report, Operational Environmental Footprint, Page 43 (2023 Environmental Footprint Data)

302-3

Energy intensity

Schrödinger 2023 Corporate Sustainability Report, Operational Environmental Footprint, Page 43 (2023 Environmental Footprint Data)

EnergyReporting Appendix

Disclosure

Water and Effluents
303-5

Water consumption

Schrödinger 2023 Corporate Sustainability Report, Operational Environmental Footprint, Page 43 (2023 Environmental Footprint Data)

305-1

Direct (Scope 1) GHG emissions

Partially reported:
Schrödinger 2023 Corporate Sustainability Report, Operational Environmental Footprint, Page 43 (2023 Environmental Footprint Data)

305-2

Energy indirect (Scope 2) GHG emissions

Schrödinger 2023 Corporate Sustainability Report, Operational Environmental Footprint, Page 43 (2023 Environmental Footprint Data)

305-3

Other indirect (Scope 3) GHG emissions

Schrödinger 2023 Corporate Sustainability Report, Operational Environmental Footprint, Page 43 (2023 Environmental Footprint Data)

305-4

GHG emissions intensity

Schrödinger 2023 Corporate Sustainability Report, Operational Environmental Footprint, Page 43 (2023 Environmental Footprint Data)

Waste generated

Partially reported:
Schrödinger 2023 Corporate Sustainability Report, Operational Environmental Footprint, Page 43 (2023 Environmental Footprint Data)

Emissions

Waste
306-3

Supplier Environmental Assessment
New suppliers that were screened using environmental
criteria

Partially reported:
Supplier Code of Conduct

401-1

New employee hires and employee turnover

Schrödinger 2023 Corporate Sustainability Report, Diversity, Equity, and Inclusion, Pages 28-29 (Workforce Metrics)

401-3

Parental leave

Partially reported:
Company-provided parental leave is available to U.S. FTE employees. Employees in global offices are offered statutory
parental leave as available in their country of employment.

308-1
Employment

Occupational Health and Safety
403-1

Occupational health and safety management system

Health and Safety Policy, expected to be published on our website in 2024.

403-2

Hazard identification, risk assessment, and incident
investigation

We completed a safety audit of all our office facilities and have put into place a reporting structure for investigating andtracking work-related injuries and illnesses. In our lab facility, we have done the same, but have also put a safety consultant
on retainer for monthly safety on-site reviews. We will repeat the safety audits in all of our facilities in 2024.

403-5

Worker training on occupational health and safety

Partially reported:
Schrödinger employees working in lab settings participate in occupational health and safety training. All employees, officeand lab, can take part in optional yearly CPR and ergonomics training.

55

GRI Standards Disclosure Title

2023 Location/Response

Occupational Health and Safety
403-6

Promotion of worker health

Schrödinger 2023 Corporate Sustainability Report, Employee Well-Being, Pages 30-32
Schrödinger provides ergonomic training annually in the United States and India, and all employees worldwide have accessto standing desks, and ergonomic chairs and monitors. In addition, the company promotes physical health with different
events scattered throughout the year that vary by location, including activities like vaccinations, massages, and healthfairs. In the United States, employees have access to a mental health benefit, and the company supports an ERG related topromoting employee mental health and wellness that is open to all employees worldwide.

403-8

Workers covered by an occupational health and safety
management system

Partially reported:
There is no regulatory requirement for Schrödinger to have an occupational health and safety management system due tothe nature of our business. However, in 2023, we completed a health and safety audit of our sites, implemented corrective
actions identified in the audits, and intend to repeat this process in the future.

403-9

Work-related injuries

There were no work-related injuries in facilities controlled by the company. Our lab facility is classified as BSL-2, which has
been verified by an outside contractor.

403-10Work-related ill health

There were no work-related ill-health incidents in 2023 in facilities controlled by the organization. Our lab facility is classified
as BSL-2, which has been verified by an outside contractor.

Reporting Appendix

Disclosure

Training and Education
404-1

Average hours of training per year per employee

Partially reported:
Schrödinger 2023 Corporate Sustainability Report, Ethics, Transparency, and Compliance, Page 46 (Educating to Uphold Our
Ethical Standards)

404-2

Programs for upgrading employee skills and transition
assistance programs

Schrödinger 2023 Corporate Sustainability Report, Company Culture and Employee Engagement, Page 23 (Ongoing
Learning and Development)

404-3

Percentage of employees receiving regular performance andcareer development reviews

Schrödinger 2023 Corporate Sustainability Report, Company Culture and Employee Engagement, Page 23 (Reviewing
Performance)

Diversity and Equal Opportunity
405-1

Diversity of governance bodies and employees

Schrödinger 2023 Corporate Sustainability Report, ESG Governance, Pages 13-15;
Diversity, Equity, and Inclusion, Pages 28-29 (Workforce Metrics)
Schrödinger 2024 Proxy Statement (Board Diversity Matrix), Page 48

Freedom of Association and Collective Bargaining
407-1

Operations and suppliers in which the right to freedom of
association and collective bargaining may be at risk

Schrödinger is in the process of developing a human rights policy and planning for supply chain audits.

Operations and suppliers at significant risk for incidents ofchild labor

Schrödinger is in the process of developing a human rights policy and planning for supply chain audits.

Child Labor
408-1

Forced or Compulsory Labor
409-1

Operations and suppliers at significant risk for incidents offorced or compulsory labor

Schrödinger is in the process of developing a human rights policy and planning for supply chain audits.

56

GRI Standards Disclosure Title

2023 Location/Response

Local Communities
413-1
413-2

Operations with local community engagement, impact assessments, anddevelopment programs
Operations with significant actual and potential negative impacts on local
communities

Schrödinger is currently in the planning stage for conducting supply chain audits.
Schrödinger is currently in the planning stage for conducting supply chain audits.

Reporting Appendix

Disclosure

Supplier Social Assessment
414-1

New suppliers that were screened using social criteria

Partially reported: Supplier Code of Conduct

414-2

Negative social impacts in the supply chain and actions taken

Schrödinger is currently in the planning stage for conducting supply chain audits.

Political contributions

In 2023, Schrödinger did not engage in political contributions.

Public Policy
415-1

Marketing and Labeling
417-3

Incidents of non-compliance concerning marketing communications

In 2023, Schrödinger recorded no incidents of non-compliance concerning marketing communications.

Customer Privacy
418-1

Substantiated complaints concerning breaches of customer privacy andlosses of customer data

In 2023, Schrödinger recorded no substantiated complaints concerning breaches of customer privacy or losses ofcustomer data.

SASB - Biotech
Topic

Accounting Metric

Category

CodeLocation/Response

Safety ofClinical Trial
Participants

Discussion, by world region, of management process for ensuring quality and patient
safety during clinical trials

Discussion andAnalysis

HC-BP-210a.1

All trial activity in the United States isconducted according to the ethical principlesof the Declaration of Helsinki and ICH GCP.

Safety ofClinical Trial
Participants

Number of FDA Sponsor Inspections related to clinical trial management andpharmacovigilance that resulted in: (1) Voluntary Action Indicated (VAI) and (2) Official
Action Indicated (OAI)

Quantitative

HC-BP-210a.2

In 2023, Schrödinger recorded no FDA
Sponsor Inspections related to clinical trial
management and pharmacovigilance.

Safety ofClinical Trial
Participants

Total amount of monetary losses as a result of legal proceedings associated withclinical trials in developing countries

Quantitative

HC-BP-210a.3

In 2023, Schrödinger recorded no monetarylosses as a result of legal proceedings associatedwith clinical trials in developing countries.

Access to
Medicines

Description of actions and initiatives to promote access to healthcare products forpriority diseases and in priority countries as defined by the Access to Medicine Index

Discussion andAnalysis

HC-BP-240a.1

Partially Reported: Schrödinger 2023
Corporate Sustainability Report, Drug
Discovery and Life Science Collaborations,Pages 17-19

Access to
Medicines

List of products on the WHO List of Prequalified Medicinal Products as part of its
Prequalification of Medicines Programme (PQP)

Discussion andAnalysis

HC-BP-240a.2

Not applicable

Affordability andPricing

Number of settlements of Abbreviated New Drug Application (ANDA) litigation thatinvolved payments and/or provisions to delay bringing an authorized generic productto market for a defined time period

Quantitative

HC-BP-240b.1

Not applicable57

Accounting Metric

Category

CodeLocation/Response

Affordability andPricing

Percentage change in: (1) average list price and (2) average net price across U.S.
product portfolio compared to previous year

Quantitative

HC-BP-240b.2

Not applicable

Affordability andPricing

Percentage change in: (1) list price and (2) net price of product with largest increase
compared to previous year

Quantitative

HC-BP-240b.3

Not applicable

Drug Safety

List of products listed in the Food and Drug Administration’s (FDA) MedWatch Safety
Alerts for Human Medical Products database

Discussion andAnalysis

HC-BP-250a.1

Not applicable

Drug Safety

Number of fatalities associated with products as reported in the FDA Adverse Event
Reporting System

Quantitative

HC-BP-250a.2

Not applicable

Drug Safety

Number of recalls issued, total units recalled

Quantitative

HC-BP-250a.3

Not applicable

Drug Safety

Total amount of product accepted for takeback, reuse, or disposal

Quantitative

HC-BP-250a.4

Not applicable

Drug Safety

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

Quantitative

HC-BP-250a.5

Not applicable

Counterfeit Drugs

Description of methods and technologies used to maintain traceability of products
throughout the supply chain and prevent counterfeiting

Discussion andAnalysis

HC-BP-260a.1

Not applicable

Counterfeit Drugs

Discussion of process for alerting customers and business partners of potential or
known risks associated with counterfeit products

Discussion andAnalysis

HC-BP-260a.2

Not applicable

Counterfeit Drugs

Number of actions that led to raids, seizure, arrests, and/or filing of criminal charges
related to counterfeit products

Quantitative

HC-BP-260a.3

Not applicable

Ethical Marketing

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

Quantitative

HC-BP-270a.1

In 2023, Schrödinger recorded no monetarylosses as a result of legal proceedings
associated with false marketing claims.

Ethical Marketing

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

Discussion andAnalysis

HC-BP-270a.2

Not applicable

Employee Recruitment,
Development and Retention

Discussion of talent recruitment and retention efforts for scientists and research anddevelopment personnel

Discussion andAnalysis

HC-BP-330a.1

Schrödinger 2023 Corporate Sustainability
Report, Company Culture and Employee
Engagement, Pages 20-22

Employee Recruitment,
Development and Retention(1) Voluntary and (2) involuntary turnover rate for: (a) executives/senior managers, (b)midlevel managers, (c) professionals, and (d) all others

Quantitative

HC-BP-330a.2

Schrödinger 2023 Corporate Sustainability
Report, Diversity, Equity, and Inclusion,
Page 29 (Workforce Metrics)

Supply Chain Management

Percentage of (1) entity's facilities and (2) Tier I suppliers' facilities participating in
the Rx-360 International Pharmaceutical Supply Chain Consortium audit program orequivalent third-party audit programs for integrity of supply chain and ingredients

Quantitative

HC-BP-430a.1

Not applicable

Business Ethics

Total amount of monetary losses as a result of legal proceedings associated withcorruption and bribery

Quantitative

HC-BP-510a.1

In 2023, Schrödinger recorded no monetarylosses as a result of legal proceedings
associated with corruption or bribery. There
were no confirmed incidents of corruption.

Business Ethics

Description of code of ethics governing interactions with healthcare professionals

Discussion andAnalysis

HC-BP-510a.2

Not applicable

Reporting Appendix

Topic

58

Category

Code

Location/Response

Number of drugs (1) in portfolio and (2) in research and development (Phases 1-3)

Quantitative

HC-BP-000.B

Schrödinger Website, Therapeutic Pipeline

SASB - IT and Software
Topic

Accounting Metric

Category

CodeLocation/Response

Environmental Footprint ofHardware Infrastructure

Total energy consumed, percentage grid electricity, percentage
renewable

Quantitative

TC-SI-130a.1

Schrödinger 2023 Corporate Sustainability Report,
Operational Environmental Footprint, Page 43 (2023
Environmental Footprint Data)

Environmental Footprint ofHardware Infrastructure

Total water withdrawn, total water consumed, percentage of each inregions with High or Extremely High Baseline Water Stress

Quantitative

TC-SI-130a.2

Schrödinger 2023 Corporate Sustainability Report,
Operational Environmental Footprint, Page 43 (2023
Environmental Footprint Data)

Environmental Footprint ofHardware Infrastructure

Discussion of the integration of environmental considerations into
strategic planning for data center needs

Discussion andAnalysis

TC-SI-130a.3

Schrödinger 2023 Corporate Sustainability Report,
Operational Environmental Footprint, Pages 40-43

Data Privacy and Freedom ofExpression

Description of policies and practices relating to behavioral advertisingand user privacy

Discussion andAnalysis

TC-SI-220a.1

Not applicable

Data Privacy and Freedom ofExpression

Total amount of monetary losses as a result of legal proceedings
associated with user privacy

Quantitative

TC-SI-220a.3

0Data Privacy and Freedom ofExpression

Number of law enforcement requests for user information, numberof users whose information was requested, percentage resulting in
disclosure

Quantitative

TC-SI-220a.4

0

Data Privacy and Freedom ofExpression

List of countries where core products or services are subject togovernment-required monitoring, blocking, content filtering, or
censoring

Discussion andAnalysis

TC-SI-220a.5

0Data Security

Number of data breaches, percentage involving personallyidentifiable information, number of users affected

Quantitative

TC-SI-230a.1

0Data Security

Description of approach to identifying and addressing data security
risks, including use of third-party cybersecurity standards

Discussion andAnalysis

TC-SI-230a.2

Schrödinger 2023 Corporate Sustainability Report,
Cybersecurity and Data Privacy, Pages 50-51

Recruiting and Managing a Global,
Diverse and Skilled Workforce

Percentage of gender and racial/ethnic group representation for (1)management, (2) technical staff, and (3) all other employees

Quantitative

TC-SI-330a.3

Schrödinger 2023 Corporate Sustainability Report,
Diversity, Equity, and Inclusion, Pages 28-29(Workforce Metrics)

Intellectual Property Protection andCompetitive Behavior

Total amount of monetary losses as a result of legal proceedings
associated with anti-competitive behavior regulations

Quantitative

TC-SI-520a.1

In 2023, there were no monetary losses as a resultof legal proceedings associated with anti-competitive
behavior regulations.

Managing Systemic Risks fromTechnology Disruptions

Number of (1) performance issues and (2) service disruptions; (3) totalcustomer downtime

Quantitative

TC-SI-550a.1

Schrödinger did not record any instances of
performance issues, service disruptions, or customer
downtime.

Reporting Appendix

Activity Metric59

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