Teva Exceeds ESG Targets, Advances Medicine Access
Teva, a pharmaceutical company, has released its 2022 Environmental, Social, and Governance (ESG) Progress Report.
The report showcases the company's accomplishments, including fulfilling over 40% of its 23 long-term targets, with six targets completed before the scheduled time. The company has surpassed its goal to increase energy efficiency by 2030 and outperformed its 2030 target by decreasing total water withdrawal in water-stressed regions. In addition, Teva met its 2023 objectives of employee training on compliance policies.
Teva is a leading producer of generic drugs, making medical treatments more affordable and accessible worldwide. The company prioritises essential areas through its ESG strategy, addressing issues that hold the most significance to its business and creating an extensive impact. Through this approach, Teva aims to generate sustainable value and enhance the lives of patients in the long term.
“At Teva, we believe that to ensure the sustainability of our company, we must act responsibly and carefully manage non-financial areas. Our 2022 ESG Progress Report showcases our strategic approach, priority topics, and dedicated governance structure, along with enhanced disclosures. To date, we’ve issued sustainability-linked bonds (SLBs) valued at the equivalent of $7.5 billion to hold us to our environmental and social targets—making Teva the largest SLB issuer in the pharmaceutical industry. This is how we operate because it’s good for our business, and it’s the right thing to do for the world,” said Richard Francis, Teva’s President and Chief Executive Officer.
The report adheres to prominent reporting frameworks such as the Global Reporting Initiative (GRI) Standards, Sustainability Accounting Standards Board (SASB) Standards, and Task Force on Climate-Related Financial Disclosures (TCFD) guidelines. The report also aligns with the United Nations Global Compact.
Highlights of the ESG report include the following:
In 2022, Teva achieved significant milestones, including launching five access to medicines programmes and donating $699.6 million worth of medicines to patients in need.
The company reduced its greenhouse gas emissions by 24% and 12% for scope 1 and 2 and scope 3, respectively, exceeding its 2025 target.
Teva's generic medicines contributed to savings of approximately $44 billion across 21 countries, and its direct and indirect economic activity supported 237,103 jobs, generating around $8.2 billion in labour income across 24 countries.
The company reinforced its culture of inclusion and diversity through training programmes for employees and received an 82% satisfaction score.
Teva also prioritised compliance and ethics, providing training to nearly 100% of employees on compliance policies.
Additionally, Teva integrated ESG criteria into its vendor selection process, assessing more than half of its critical suppliers on ESG performance and initiating a human rights and environmental assessment for over 3,500 suppliers and all of Teva's operations across 38 ESG topics.
Teva's ESG progress has led to its ranking in the top 10% of the industry across key rating indices, such as S&P Global, ISS ESG, and EcoVadis. Additionally, the company's S&P Global score increased by 13 points in just one year to reach 54.
Teva's new materiality assessment will help the company remain focused on relevant areas that reflect stakeholder priorities and emerging issues, thus maximising its impact.
For further details on Teva's ESG achievements, please refer to the 2022 ESG Progress Report.
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Source: Business Wire
