• Environmental, Social and Governance (ESG) efforts integrated into business strategy with strengthened oversight, robust targets and sustainability-linked bond (SLB)
• Progress toward targets to improve access to medicines, including launch of four programs to-date (50% of 2025 target) and minimize environmental impact, with 13% reduction of scope 1 and 2 greenhouse gas (GHG) emissions (more than 50% of 2025 target)
• New disclosures on scope 3 GHG emissions, pay equity and responsible supply chain as well as three new position statements

Teva Pharmaceutical Industries Ltd., a leading global pharmaceutical company providing medicines to nearly 200 million people daily, published its 2021 ESG Progress Report. The report details how Teva further integrated ESG into its business strategy—implementing a strengthened ESG governance structure and setting 13 ambitious targets related to access to medicines, ethics, environment and responsible supply chain, some of which are now linked to the company’s financing strategy and executive compensation.

“As one of the world’s largest manufacturers of generic medicines, ESG is integral to the long-term strategy of our company and is part of everything we do,” said Kåre Schultz, President & CEO of Teva. “Our ESG Progress Report details our actions in 2021, which include issuing a $5 billion sustainability-linked bond, tying our financing strategy to access to medicines and environmental targets. We are in a unique position to help create a healthier future, bringing our essential medicines within reach for more people and reinforcing business integrity through our compliance and ethics policies and trainings.”

This year’s ESG Progress Report offers a comprehensive view of ESG at Teva, with new disclosures related to scope 3 emissions, pay equity and the company’s responsible supply chain, and continues to align with leading reporting standards—the Global Reporting Initiative (GRI), Sustainability Accounting Standards Board (SASB) and Task Force on Climate-Related Financial Disclosures (TCFD).

The ESG Progress Report shares Teva’s progress, including:

• Integrating ESG further into the business with a $5 billion sustainability-linked bond (SLB):Upon issuance, Teva’s SLB was the largest in the world, the first in the pharmaceutical industry linked to both social and environmental targets and the first from a generic medicines company.The SLB holds Teva accountable to reducing scope 1 and 2 GHG emissions by 25% and increasing access to essential medicines for patients in low- and middle-income countries (LMICs) by 150% by the end of 2025.
• Making medicines available and accessible to those who need them:Teva has launched four access to medicines programs to-date, 50% of its 2025 target, including an expanded partnership with Direct Relief and Global HOPE to provide critical treatments for children with cancer and blood disorders across sub-Saharan Africa and new programs in France, Israel and Ghana. Last year, the company also had 585 marketing authorizations approved in LMICs and donated more than $487 million worth of medicines.
• Minimizing environmental impact across Teva’s business and value chain: Since 2019, Teva has reduced its scope 1 and 2 GHG emissions by 13%, more than half of its 2025 target. Since 2020, the company also reduced its scope 3 GHG emissions by 5% (20% of 2030 target), increased its total proportion of energy from renewable sources by 4% (to 33%) and improved energy efficiency by 6%. In this same timeframe, it achieved an 8% reduction in both waste from operations and water withdrawal in areas projected to be in water stress.
• Fostering an inclusive workplace:Last year, the representation of women in executive and senior management positions at Teva increased by 1.8%. The company also trained nearly 90% of employees on how to foster an inclusive culture.
• Promoting ethics and operating with integrity: Teva trained more than 20,000 employees (99.6% of those assigned) on ethics. The company published three new position statements outlining its stance on patient safety, responsible supply chain and risk management. Teva was also ranked in the top 1% in the EcoVadis sustainable procurement assessment as a result of its efforts to make more responsible decisions regarding supply chain partners.

See related article: Hut 8 Highlights Industry Leading ESG Performance in inaugural Report

Teva’s ESG performance continues to improve across key rating indices—including S&P Global, ISS ESG, EcoVadis and FTSE4Good—which listed Teva among the top 10-20% of companies in its industry in 2021.

Source: Teva Pharmaceutical Industries Ltd.