AstraZeneca PLC · LSE:AZN
AstraZeneca — ESG Presentation (2004)
30 slides from AstraZeneca's sustainability presentation, 2004
Slide 1: Delivering our values
Delivering our values AstraZeneca’s evolving approach to corporate responsibility life inspiring ideas
Slide 2: Why is CR important to AZ?
Why is CR important to AZ? Our reputation is an important driver of our future success • Business performance • Partnerships • Talent management • Communities Our responsibility is as global as our business
Slide 3: Stakeholder expectations are changing
Stakeholder expectations are changing Reach and speed of communication – companies are more ‘visible’ globally Rising global concerns – AstraZeneca must be credible in debate Maintaining society’s trust and confidence is essential to our ‘licence to operate’ and our continued ability to create endur
Slide 4: Global responsibility
Global responsibility The core values which underpin all of our activities reflect our commitment to a responsible approach to business integrity and high ethical standards respect for the individual and diversity openness, honesty, trust and support for each other leadership by example at all level
Slide 5: Our approach
Our approach Effective management, based on our core values, of the economic, environmental and social priorities of sustainable development Integrated into all aspects of our business and led from the top: Board and Senior Executive Team Global CR Committee leads the development of CR management fr
Slide 6: Sustainable development
Sustainable development Economic Environmental Social issues issues issues Global policies, frameworks and standards Local implementation programmes + Measurement,monitoring,audit = Integrated approach to consistent and appropriate behaviour worldwide
Slide 7: Progress in 2003 - Economic
Progress in 2003 - Economic Headline results Q1 04 Q1 04 Q1 03 Actual CER* $m $m growth growth Sales 5,074 4,735 +7% -1% Operating profit 1,079 1,272 -15% -20% Profit before Tax 1,108 1,293 -14% -20% EPS (pre-excep) $0.47 $0.54 -13% -19% *Constant exchange rates
Slide 8: AstraZeneca strategy
AstraZeneca strategy 1999 2004 2008+ Deliver Top-tier financial performance Full potential of growth portfolio Drive Platform for Productivity for competitive Sustainable advantage growth for growth Expand long term Next wave of development projects In-house discovery External collaboration Broaden
Slide 9: 2004 priorities
2004 priorities Continue to build Crestor® into megabrand Drive Oncology portfolio Progress to US market leadership for Nexium® and Seroquel® First launches for Exanta® and register chronic claims Advance development projects Continuous improvement in productivity 2004 EPS range in range of $2. 00 t
Slide 10: Wider economic benefit
Wider economic benefit Economic as well as therapeutic advantages: A part of the solution e.g. Exanta Benefit to communities through employment, taxes paid, community support and local /national sourcing of materials and services Continued investment in innovation ($14 million each working day
Slide 11: Progress in 2003 - Environment
Progress in 2003 - Environment 18% reduction in unplanned releases 15% reduction in waste, relative to sales 3% reduction in greenhouse gas emissions 18% reduction in ODP emissions Example initiatives: Two new large energy efficient CHP plants in UK and Puerto Rico 2003 Senior Managers Video-Confere
Slide 12: Progress in 2003 - Social
Progress in 2003 - Social Appointment of Access to Medicines Director Networks of promotional standards experts established 28 diversity programmes in place • 13% of top 200 managers are women 150 business control meetings included CR • CR built into suppliers’ contracts UK BITC 1% Club
Slide 13: Progress in 2003 - governance
Progress in 2003 - governance Code of Conduct revised and republished International, confidential telephone helpline established CR included in “Letter of Assurance” process CR included in global risk assessment 11 CR audits performed by SHE auditors; Group Internal Audit reviews initiated
Slide 14: The key challenges ahead
The key challenges ahead Engagement, governance and audit How can we embed CR into all we do? • Avoid complacency; build on past success • Focus on areas for improvement e.g. diversity How can we monitor progress and audit activity? • Intangibles are important Sales and marketing practices a priorit
Slide 15: Tom McKillop, CEO
Tom McKillop, CEO “Our reputation is built on the trust and confidence of all our stakeholders and is one of AstraZeneca’s most valuable assets. Along with our commitment to competitiveness and performance, we will continue to be led by our core values to achieve sustainable success”
Slide 16: Cautionary statement regarding forward-looking statements
Cautionary statement regarding forward-looking statements In order to utilise the ‘Safe Harbor’ provisions of the United States Private Securities Litigation Reform Act of 1995, AstraZeneca is providing the following cautionary statement. This Interim Report contains forward-looking statements with
Slide 17: Back ups
Back ups
Slide 18: Our approach continued
Our approach continued Locally managed implementation programmes based on global policies and standards, and required to take account of local regional or functional priorities Measuring progress: key performance indicators Auditing compliance: extending established processes to cover more areas of
Slide 19: Corporate governance
Corporate governance An essential part of our corporate responsibility Taken very seriously by Board and Senior Management Commitment to continued high standards, supported by: Code of Conduct Robust internal controls and risk management Clear and transparent financial reporting Internal and externa
Slide 20: Environmental
Environmental Committed to sustained improvement in areas where our global business has the greatest impact: Climate change (energy use and CFC propellants) Ozone depletion (CFC propellants) Waste production (reduction of mass and impact of operations) Clear targets for reducing our impact Challenge
Slide 21: Social
Social Good CR means understanding and responding appropriately to the social issues relating to our activities that affect or concern society These issues include: Research & development (including animal welfare) Access to medicines Sales & marketing practices Working with suppliers Employees Comm
Slide 22: R&D processes
R&D processes Our Bioethics Policy reflects our commitment to high ethical standards in all of our R&D processes Includes strict standards on use and care of animals Animal testing has an essential role in the discovery and development of new medicines Safety data required by regulatory authorities
Slide 23: Access to medicines
Access to medicines An issue which affects the whole pharmaceutical industry Growing demand for better healthcare combined with increasing pressure on healthcare budgets Challenge is to address cost pressures whilst continuing to invest in research of new medicines Part of a bigger challenge involvi
Slide 24: Sales & marketing
Sales & marketing Committed to high ethical standards of sales and marketing worldwide Own Code based on global industry code of conduct as well as the codes of marketing practice, laws and regulations applicable in each of the countries in which we operate Compliance is mandatory Commitment strengt
Slide 25: Working with suppliers
Working with suppliers Encouraging our suppliers to embrace corporate responsibility standards similar to our own Working with them to share best practice and, where needed, stimulate improved performance Our Purchasing Principles provide global guidelines to ensure that CR considerations are includ
Slide 26: Employees
Employees Human rights: AZ supports the principles set out in the UN Declaration of Human Rights Safety, health & wellbeing: a core priority Development: employees encouraged and supported in developing to their full potential Communication/consultation: open management communication style, regular
Slide 27: Community support
Community support We aim to be responsible members of our local communities through charitable donations, sponsorships and other initiatives which help make a positive difference Focused on healthcare and science education Some corporate community projects but majority managed locally Global databas
Slide 28: Community support examples
Community support examples Brightside Trust, UK National Breast Cancer Awareness Programme, US Asthma Treatment Units, Sweden University partnership, China Book Power, Africa Red Cross TB programme, Kyrgyzstan and Turkmenistan
Slide 29: Ongoing commitment
Ongoing commitment Continued integration of CR into business processes Continued local implementation and global auditing Continued development of meaningful performance measures Ongoing internal communication to ensure understanding and commitment – at all levels Priority focus on areas for improve
Slide 30: astrazeneca.com
For further details and updates visit astrazeneca.com life inspiring ideas