Slide 1: Environmental Sustainability ESG Investor Event
Environmental Sustainability ESG Investor Event Basel, 23 May 2023
Slide 2: Forward-looking statements
This presentation contains certain forward-looking statements. These forward-looking statements may be identified by words such as ‘believes’, ‘expects’, ‘anticipates’, ‘projects’, ‘intends’, ‘should’, ‘seeks’, ‘estimates’, ‘future’ or similar expressions or by discussion of, among other things, str
Slide 3: Welcome
Welcome Bruno Eschli | Head of Investor Relations
Slide 4: Agenda
Agenda Welcome Bruno Eschli, Head of Investor Relations Why does ESG matter? Alan Hippe, Chief Financial and Information Officer Environmental sustainability through operational and product innovation Carbon emissions and the future of energy Scott Hemphill, Global Expert in Environmental Sustainabi
Slide 5: Updated ESG resources on roche.com/investors
Updated ESG resources on roche.com/investors Our Sustainability Strategy Environmental Social Governance 5
Slide 6: Why does ESG matter?
Why does ESG matter? Alan Hippe Chief Financial and Information Officer
Slide 7: Second ESG event focusing on Environmental Sustainability
Second ESG event focusing on Environmental Sustainability Results of the 2022 event survey What do you consider the most relevant ESG topics for a healthcare company?* 30% 2022 ESG Event 25% 25% 20% 19% 15% 2023 ESG Event 11% 10% 10% 9% 9% 7% 5% 5% 4% 3% 0% Access to HC Pricing Governance Environmen
Slide 8: What sustainability means for Roche
What sustainability means for Roche Integrating sustainability across our business • Develop new medicines, diagnostics and integrated health solutions that address the needs of diverse patient communities • Increase access to our innovations globally with local communities in mind • Care for our em
Slide 9: 2022 performance highlights
2022 performance highlights Commitment to Sustainable Development Goals Our Impact Our 2022 performance Supporting UN SDGs Society ● 14 million patients treated How we contribute to a better tomorrow for all ● 29 billion tests conducted ● 87 new molecular entities in clinical development ● 37% femal
Slide 10: Sustainability governance
Sustainability governance Updating our corporate structure to serve our sustainability goals best Corporate Governance and Sustainability Committee of Board of Directors (BoD) • Responsible and accountable for governing and advising on sustainability at the BoD level 2023 aspirations: Sustainability
Slide 11: Carbon emissions & the future of energy
Carbon emissions & the future of energy Scott Hemphill Global Expert Environmental Sustainability
Slide 12: Roche's eco-balance
Roche’s eco-balance A standardized metric to measure our environmental impact Air & GHG ● Our encompassing environmental impact emissions is measured through an eco-balance Water Energy metric consumption consumption ● The methodology follows the “Ecological Roche Scarcity Method” published in 2013
Slide 13: Defining Greenhouse Gas (GHG) emissions
Defining Greenhouse Gas (GHG) emissions The three scopes of GHG emissions associated with our operations ~249,961 tCO2 ~114,519 tCO2 ~4,550,518 tCO2 5% 2% 93% Impact from internal Impact from external Impact from external operations operations operations Scope 1 Scope 2 Scope 3 - Upstream Scope 3 -
Slide 14: Reducing Scope 1 & 2 GHG emissions from our operations
Reducing Scope 1 & 2 GHG emissions from our operations 7% of GHG emissions result directly from our own operations 2020 2025 2030 2050 5% 2% Sites developed 40% reduction of Emission-free vehicles Zero scope 1&2 green- roadmaps towards zero greenhouse gas used for business house gas emissions Scope
Slide 15: Carbon Management Hierarchy
Reducing Scope 1 & 2 GHG emissions from our operations Our strategy to reducing and ultimately eliminating GHG emissions The Carbon Management Hierarchy Avoid carbon-intensive activities (and rethink business strategy) Avoid Optimize efficiently Reduce Replace high-carbon energy sources with low-car
Slide 16: Reducing Scope 1 & 2 GHG emissions for nearly 20 years
Reducing Scope 1 & 2 GHG emissions for nearly 20 years Our commitment to absolute zero: 73% reduction since 2004 Roche Scope 1&2 GHG (tCO2e/employee) GHG emissions (normalized to 2004 levels) Global GHG emissions 73% Scope 1 & 2 GHG emissions reduction since 2004 100% sustainable electricity target
Slide 17: Scope 1 & 2 energy mix
Scope 1 & 2 energy mix The energy mix used by Roche is becoming more sustainable Energy consumption by geography 100% Transition to sustainable energy 2002: 90% • 33% less natural gas consumption 80% • 97% less fuel oil consumption 70% • 17% less electricity consumption 60% • Increase from 0% to 81%
Slide 18: Sustainable electricity use
Our goal is to reach 100% sustainable electricity by 2025 100% 2025 Goal - 100% Significant progress made since 2017 90% 80.9% 80% • US: Pleasanton increased from 52% 71.8% 69.5% 67.8% sustainably-sourced electricity to 100% Sustainable electricity use 70% 62.7% 60% 57% • Japan: Chugai increased fro
Slide 19: Minimizing environmental impact through continuous innovation
Minimizing environmental impact through continuous innovation CO2-free and sustainable electricity examples at global operations Oceanside, USA Branchburg, USA Natural refrigerant heat will be the first Roche site in pumps, solar facade, 30% the US to use geothermal less energy consumption technolog
Slide 20: Minimizing environmental impact through continuous innovation
Minimizing environmental impact through continuous innovation CO2-free and sustainable electricity examples at global operations Meylan, France San Francisco, USA was the first site to be CO2- First fully electric research free by using biogas and building in Northern sustainable electricity in Cali
Slide 21: Climate change mitigation at Roche
Climate change mitigation at Roche • Energy and Greenhouse Gas emissions are the largest component of the Roche eco-balance calculation • While Roche’s Scope 1 & 2 GHG emissions are less than our Scope 3 GHG emissions, we want to lead by example to motivate our value chain partners and help our cust
Slide 22: Sustainable construction
Sustainable construction Georg Singewald Head of Global MSAT & Engineering
Slide 23: The benefits of sustainable construction
The benefits of sustainable construction ...driven by future-focused thinking Higher business Higher property value resilience Higher likelihood of Lower cost of Higher workplace & due to reduced long-term regulatory ownership productivity improved reputation environmental compliance resources needs
Slide 24: Sustainable construction encompasses the building life-cycle
Sustainable construction encompasses the building life-cycle Our systemic approach addresses environment, economy and society Raw material • Roche started applying sustainable construction exploration methodology in 2016 • We apply a systematic approach and evaluation in all Recycling Construction c
Slide 25: State of the art in sustainable construction
State of the art in sustainable construction Building 2 – tallest and most energy efficient highrise in Switzerland Energy efficiency • Optimized building facade to reduce energy demand • Heating with site waste heat, cooling with groundwater • Active heat recovery • Daylight utilization with consta
Slide 26: Building 2: Best-in-class results in sustainable construction
Building 2: Best-in-class results in sustainable construction Top energy efficient highrise in the EU Green building Energy optimized Old building and new building without energy optimization 2023 new building Building 2 72 Building 1 80 Highrise 1 Before refurbishment Highrise 2 Heating Cooling Hig
Slide 27: Reducing environmental impact of buildings
Reducing environmental impact of buildings Building 2 – Healthy environment for up to 3550 employees Thoughtful material sourcing Air quality in different buildings 30,000 • 45,700 m³ CO2-reduced local concrete Recommendation TVOC: 300 – 1,000μg/m3 • 30,000 m2 cradle2cradle recycled Formaldehyde:< 9
Slide 28: Reducing environmental impact of building operations
Reducing environmental impact of building operations Clinical Supply Center in San Francisco, USA Factory of the future concept gains • 20% more favorable carbon footprint • 60% less water consumption • 30% less energy consumption • 50% less chemical waste • Up to 50% lower cost per production run,
Slide 29: Sustainable construction at Roche
Sustainable construction at Roche • Sustainable construction is a novel systematic approach to building that goes far beyond reducing environmental impact • Building 2 in Basel and the Clinical Supply Center in South San Francisco are examples of state-of-the- art sustainable construction and clearl
Slide 30: Product stewardship in Pharma and Diagnostics
Product stewardship in Pharma and Diagnostics Ursina Kohler Head of Product Stewardship
Slide 31: Sustainability through product stewardship and innovation
Sustainability through product stewardship and innovation Following a clear framework of the product stewardship cycle Key drivers of the product stewardship Chemical Usage framework • Voice of the customer Development Energy/ • Product and process development Circularity water • Manufacturing Produ
Slide 32: Reducing waste and improving patient experience
Reducing waste and improving patient experience Continued development throughout the product lifecycle Extended in-use time for IV vials Improved storage for pre-filled syringe • Extension of the in-use time • Simplified storage for Actemra SC of sterile concentrate in IV at ≤30°C for 2 weeks instea
Slide 33: Improving packaging to reduce waste and labor requirements
Improving packaging to reduce waste and labor requirements Moving from single reagent/calibrator pack to MultiPack Packaging of Elecsys Syphilis assay Creating sustainable solution for customer needs Single pack MultiPack 1 reagent ePack (300 tests) 20 reagent ePacks (6,000 tests) • High-throughput
Slide 34: Significant waste reduction from innovative packaging solution
Significant waste reduction from innovative packaging solution Moving from single reagent/calibrator pack to MultiPack Reductions per MultiPack kit -23% -91% -93% -90% -19% -67% Less Less Less Less Less Less Paper Plastic Mixed materials Glass Space Solid waste Successful pilot project with expected
Slide 35: Reagent innovation for cobas SWA solutions
Reagent innovation for cobas® SWA solutions Increasing capacity while reducing the environmental footprint Roche Customers Up to Up to Up to Up to 258,000 78% 43% 36% tons less CO2 less solid waste less sample volume less water emission by 2030 per result with cobas per result with cobas per result
Slide 36: Phasing out substances of very high concern
Phasing out substances of very high concern Reducing the environmental impact, going beyond regulations 2015 2023 Future • On track to meet 2025 goals • Continue to phase out SVHC Made a commitment to phase out substances of very high concern • Examples of successful phase- • Avoid using SVHCs whene
Slide 37: Systematically addressing sustainability in our products
Systematically addressing sustainability in our products • Product stewardship is an integral part of product development and life cycle management • We strive to deliver sustainable products and circular solutions that reduce waste and allow for great accessibility; as part of the process we are: •
Slide 38: Water & waste management, remediation efforts
Water & waste management, remediation efforts Richard Huerzeler Chief Environment & Remediation Officer
Slide 39: Remaining key components of our sustainability approach
Remaining key components of our sustainability approach • Access to high quality water is at the core of our Business Continuity needs • Implementing various water saving measures and to use this important resource responsibly is one of the goals of our sustainability approach • In managing waste, R
Slide 40: Aiming to reduce current water use by at least 15% by 2025
Aiming to reduce current water use by at least 15% by 2025 Risk-weighted water consumption intensity (m3/FTE) Risk-weighted water consumption intensity (m3/FTE) Actual Current forecast Annual Goal FTE=Full-time employee 40
Slide 41: Transitioning away from chemical water handling
Transitioning away from chemical water handling Switching from chemical water treatment to dynamic filtering system Project improvements Chemical water treatment Dynamic filtering system • Annual water usage reduction of 3,700 m³ • Elimination of chemical costs of $40,000 • Removal of 18.6 tons of c
Slide 42: Managing waste at Roche
Managing waste at Roche On our way to a circular economy Waste management hierarchy Reuse • Soil from building projects, depending on quality • Electrical & electronic waste • Construction waste Recycle • Non-hazardous waste (glass, plastics, wood, paper, cardboard etc.) Incinerate • Solvents • Non-
Slide 43: Reducing hazardous waste to landfill
Reducing hazardous waste to landfill Hazardous waste to landfill (tons/year)* Hazardous waste management • Hazardous waste includes contaminated packaging materials, residues from Hazardous waste to landfill (tons/year) cleaning operations, expired goods • Roche committed to reducing the amount of h
Slide 44: Landfill remediation: Fulfilling our legacy responsibility
Landfill remediation: Fulfilling our legacy responsibility Cleaning up 360,000 tons of contaminated soil in Grenzach-Wyhlen, Germany Key facts • Size of remediated area: 14,000 m² • Excavation volume: 360,000 tons • Total cost: €239M Remediation process • Sound-insulated and airtight enclosure • Con
Slide 45: Eco-balance: Total environmental impact of our operations
Eco-balance: Total environmental impact of our operations 2029 goal: 50% reduction from 2019 Roche environmental footprint Roche commitment to improving eco-balance • Eco-balance performance in 2022 - 32% vs. 2019 • 2029 eco-balance goal is -50% vs. 2019 • 75% Scope 1 & 2 GHG emission reductions • 1
Slide 46: Environmental sustainability in our supply chain
Environmental sustainability in our supply chain Marielle Beyer Head Global Procurement
Slide 47: How procurement contributes to sustainability at Roche
How procurement contributes to sustainability at Roche A unique position to accelerate progress of our ESG goals Global Procurement Environment Society Partners with Group SHE on their Supports the business to successful real zero carbon reduction for increase patient access to Scope 1 & 2 our innov
Slide 48: Roche's carbon footprint according to Scope 1, 2 & 3
Roche’s carbon footprint according to Scope 1, 2 & 3 The majority of emissions are in our supply chain 5% 2% 93% of total CO2 emissions attributed to our value chain ~81% of total emissions are directly attributable to purchased goods and services and capital goods ~12% of total emissions are relate
Slide 49: Considering the entire value chain to reduce emissions
Considering the entire value chain to reduce emissions Our supply chain is responsible for 93% of our total CO2 emissions To reduce our emissions in this area we must look at what can be done across the whole value chain Research & Product Strategy & (Sub-) Supplier Production Distribution Customer
Slide 50: Science Based Target initiative (SBTi)
Science Based Target initiative (SBTi) Roche SBTi target submission expected by the end of 2023 What is the Science Based Target initiative? Partnership between: • “Science-based” carbon reduction targets meet the goals of the Paris Agreement - global warming max 1.5°C • SBTi drives ambitious climat
Slide 51: Carbon emissions reduction readiness
Carbon emissions reduction readiness Preparing our suppliers, the business and procurement to drive carbon reduction Building capability Increasing capacity Maximising technology Internal education and intranet Embedding our carbon reduction Exploring new technologies to Procurement / resources for
Slide 52: Sustainable packaging concept for Diagnostics
Sustainable packaging concept for Diagnostics One optimization entails broad impact Conventional packaging with cooling components Global collaborations to drive sustainability (ice packs, dry ice, styrofoam insulation) Cross-functional initiative between Japanese supplier, global procurement, and l
Slide 53: Drop-shipment of COVID-19 rapid tests
Drop-shipment of COVID-19 rapid tests Optimizing future Diagnostics supply chain networks Key highlights • Switch from standard distribution to drop-shipment to the affiliates • Drop-shipment allows the products to be shipped directly from supplier to affiliates instead of shipping and handling via
Slide 54: Roche joining the Sustainable Markets Initiative (SMI)
Roche joining the Sustainable Markets Initiative (SMI) Cross-sector initiative to transition to net zero, patient-centric health systems SMI launched at COP26 as a private-public collaboration of 14 members to support transition to net zero emissions Focus areas of the Health Systems Task Force: 1.
Slide 55: Roche participating in Energize renewable electricity program
Roche participating in Energize renewable electricity program Increase access to renewable electricity across pharmaceutical supply chains • Energize is an industry-wide collaboration with 17 industry sponsors • The programme aims to accelerate renewable electricity adoption in the pharmaceutical su
Slide 56: Doing now what patients need next
Doing now what patients need next
Slide 57: Q & A
Doing now what Q &patients A need next