Primary: Manufacturing energy efficiency & site certifications Nine sites covered by ISO 14001 and six by ISO 50001. Launched energy audit program for manufacturing sites in 2024 to inform 2030/2035 decarbonization plans. Kundl achieved 40,000 MWh/year energy savings via fermenter geometry improvements with Graz University. Hyderabad office achieved LEED platinum.
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Zero waste to landfill by 2030 Commitment to zero waste to landfill by 2030; 75% of 16 sites in scope are zero waste to landfill in 2024.
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Multi-year transformation program launched Sandoz launched multi-year transformation program in 2024 to simplify organizational structure. USD 233m transformation costs in 2024. Internal sites reduced from 18 to 15.
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Renewable PPAs and hydropower for European ops Sandoz uses 100% renewable electricity at manufacturing sites in Austria and Brazil. Kundl (Austria) sources electricity from renewables since 2014, with 95% from hydropower in 2024 plus wind and photovoltaics. India share of renewables is increasing. Final stages of securing renewable PPAs to further decarbonize European operations. Also joined Schneider Electric's Energize program (PSCI-endorsed) to help suppliers access renewable electricity procurement.
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Dependent: AMR-aligned wastewater treatment Targeting PEC/PNEC<1 for active pharmaceutical ingredient discharge at all manufacturing and API supplier sites by 2030; 84% of wastewater by volume compliant in 2024. Kundl was first Sandoz site to achieve BSI's international AMR standard in 2023; Pallafols and Lendava under assessment.
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Acquired Cimerli biosimilar business Acquired US Cimerli (biosimilar ranibizumab) from Coherus BioSciences for upfront USD 170m + USD 18m adjustment. Goodwill USD 148m.
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China business divestment to Aspen Swap of Sandoz China legal entity with Aspen's surgical anesthesia portfolio plus cash. Pre-tax gain of USD 36m.
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Gender balance in senior leadership by 2030 Long-term goal: 50% gender balance in senior leadership by 2030 (buffer 45-55%); targets embedded in LTPP for executives.
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Dependent: Supply chain decarbonization (Scope 3 cat 1) Supplier emissions account for majority of Sandoz's footprint. Engaged key suppliers in 2024 to agree emissions reduction action plans; all supplier contracts now include updated ESG requirements. Built Scope 3 monitoring methodology, trained category managers, ran supplier workshops, and joined Schneider Electric Energize program to help suppliers procure renewables.
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Primary: Antibiotics vertical integration with lactose substitution USD 200m Kundl penicillin capacity expansion (+20% vs 2023, 2× vs 2021). Since spring 2024, lactose (cheese by-product) replaces other sugar sources for penicillin fermentation, strengthening regional supply and cutting transport CO2. Biosol bio-fertilizer from fungal mycelium distributed since 1981.
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