Company: CRL
Filing Date: 2025-04-02
Form Type: DEF 14A
Source: 0001104659-25-030908
Chunk: 109

Company: CHARLES RIVER LABORATORIES INTERNATIONAL, INC.
Filing Date: 2025-04-02
Form: DEF 14A
Chunk 109
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 our second annual NHP Report. The NHP Report focuses on concrete initiatives being implemented to reinforce confidence that NHPs the Company imports are sourced in accordance with applicable laws. The NHP Report includes the following information that we believe specifically addresses all of the substantive, non-proprietary shareholder requests from Proposal Four, as well as additional content prompted by the feedback provided during our broader shareholder outreach on this topic: • enhancements being made to safeguards to ensure sourcing of animals in accordance with applicable laws and Charles River’s ethical standards, such as monitoring and audit processes, development of a genetic testing process, and adoption of an enhanced, further comprehensive and cross-functional NHP Supplier Risk Management Process; • increased disclosure; • diversification of the Company’s supply chain; • new approach methods—investments in alternatives; • internal governance structures; • granular data on the global number of NHPs placed in studies by our Safety Assessment business over the last four years; • the Company’s procedures to screen for zoonotic disease; and • country of origin data. Our Board believes the detail contained in the report provides our shareholders with comprehensive information regarding the Company’s specific efforts in support of proper animal welfare, the prevention of emerging infectious diseases, and ethical business practices. Accordingly, the Company believes that the NHP Report specifically addresses all of the substantive, non-proprietary shareholder requests from the proposal, thereby rendering it redundant and unnecessary. Shareholder Engagement Informed Content of the NHP Report The NHP report was not prepared in isolation. It was informed by significant shareholder input. To inform the content of the second NHP Report, in addition to the substantial outreach we conducted prior to the publication of the initial NHP Report in March 2024 (discussed in the Company’s 2024 Proxy Statement), we conducted additional significant proactive shareholder engagement by reaching out to our top 25 shareholders representing more than 60% of shares outstanding. We held one-on-one discussions in December 2024 and January 2025 with shareholders representing 15% of shares outstanding at the time. We met with the proponent and every shareholder who requested a discussion on this topic. Shareholder feedback regarding the initial NHP Report was overwhelmingly positive, and in fact the proponent is the only entity that we engaged with who indicated that the content of the initial NHP Report was not sufficient. In addition to the shareholder outreach we proactively conducted, interested parties may provide input on this and other matters by writing to the Lead Director, c/o Corporate Secretary, Charles River Laboratories