Teva Shares Progress Toward Access to Medicines and Environmental Commitments, Meeting and Exceeding Several ESG Targets Ahead of Schedule
Teva Pharmaceutical Industries Ltd. (NYSE and TASE: TEVA) today published its 2022 Environmental, Social and Governance (ESG) Progress Report, which highlights the Company's achievements, such as completing more than 40% of its 23 long-term targets, including six ahead of schedule. The Company successfully met its 2030 target to increase energy efficiency, exceeded its 2030 target to reduce total water withdrawal in areas projected to be in water stress and met its 2023 targets to train employees on compliance policies.
Teva is one of the world's largest manufacturer of generic medicines, making treatments more affordable and accessible. Through its ESG strategy, Teva addresses areas that are most important to its business and where it can make the greatest impact. This allows the Company to create long-term value and continue improving the lives of patients.
"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 aligns with leading reporting frameworks, including the Global Reporting Initiative (GRI) Standards, Sustainability Accounting Standards Board (SASB) Standards and the Task Force on Climate-Related Financial Disclosures (TCFD) recommendations, as well as the United Nations Global Compact.
In 2022, Teva:
- Increased access to medicines globally. Teva launched five access to medicines programs as of 2022 (63% of its 2025 target), providing treatments to people who otherwise would not be able to afford or obtain them. Teva also donated $699.6 million worth of medicines to patients in need.
- Minimized its environmental footprint. Teva reduced its absolute scope 1 and 2 greenhouse gas (GHG) emissions by 24% (vs. 2019), putting the Company ahead of schedule to meet its 2025 target (25% reduction), and reduced absolute scope 3 GHG emissions by 12% (vs. 2020). Teva's GHG emissions targets were recently approved by the Science Based Targets initiative (SBTi), providing external validation of the company's ambitious climate commitments.
- Contributed to economies and healthcare systems around the world. Teva's generic medicines contributed to approximately $44 billion in savings across 21 countries, and Teva's direct and spillover economic activity contributed $20 billion to GDP, supported 237,103 jobs and generated approximately $8.2 billion in labor income across 24 countries.
- Reinforced a culture of inclusion and diversity (I&D). Teva provided mandatory training for all employees on fostering inclusive behavior and included an inclusive leadership module in all global leadership development programs. Teva's I&D practices continued to receive high scores from employees, increasing to 82% satisfaction.
- Continued prioritizing compliance and ethics. Conducting business with integrity depends on every one of Teva's employees. Teva trained nearly 100% of employees on compliance policies, including topics such as anti-corruption, fair competition and data privacy.
- Advanced ESG integration in procurement and supply chain management. Teva strengthened its supply chain by further incorporating ESG criteria into its data-based vendor selection process. The Company assessed more than half of its critical suppliers on ESG performance (56% of its 2025 target). Teva also initiated a human rights and environmental assessment for more than 3,500 suppliers and all of Teva's operations across 38 ESG topics.
Teva's ESG performance continues to improve, ranking in the top 10% of its industry across key rating indices, including S&P Global, ISS ESG and EcoVadis. The Company also saw a 13-point increase in its S&P Global score, to 54, in one year.
Teva also initiated a new materiality assessment in 2022 to ensure its focus areas remain relevant and reflect stakeholder priorities and emerging issues. The results will inform future updates to Teva's ESG strategy, allowing the company to maximize its impact.
Learn more in Teva's 2022 ESG Progress Report.
About Teva
Teva Pharmaceutical Industries Ltd. (NYSE and TASE: TEVA) has been developing and producing medicines to improve people's lives for more than a century. We are a global leader in generic and innovative medicines with a portfolio consisting of over 3,500 products in nearly every therapeutic area. Around 200 million people around the world take a Teva medicine every day, and are served by one of the largest and most complex supply chains in the pharmaceutical industry. Along with our established presence in generics, we have significant innovative medicines research and operations supporting our growing portfolio of innovative medicines and biopharmaceutical products.
Cautionary Note Regarding Forward-Looking Statements
This Press Release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are based on management's current beliefs and expectations and are subject to substantial risks and uncertainties, both known and unknown, that could cause our future results, performance or achievements to differ significantly from that expressed or implied by such forward-looking statements. Important factors that could cause or contribute to such differences include risks relating to: our ability to impact and effectively execute on our social, economic, environment and governance related strategies and goals; environmental risks; failure to comply with applicable environmental laws, health and safety laws and regulations worldwide; our ability to satisfy the targets set forth in our sustainability-linked senior notes and in other sustainability-linked financing instruments that we may issue; the impact of ESG issues on our business; and consequences of climate change; our ability to successfully compete in the marketplace, including: that we are substantially dependent on our generic products; our substantial indebtedness; our business and operations in general, including: the impact of global economic conditions and other macroeconomic developments and the governmental and societal responses thereto; compliance, regulatory and litigation matters, including: failure to comply with complex legal and regulatory environments; other financial and economic risks; and other factors discussed in our Annual Report on Form 10-K for the year ended December 31, 2022, including in the sections captioned "Risk Factors" and "Cautionary Note Regarding Forward-Looking Statements" and under similar captions in our other reports that we file with the U.S. Securities and Exchange Commission. Forward-looking statements speak only as of the date on which they are made, and we assume no obligation to update or revise any forward-looking statements or other information contained herein, whether as a result of new information, future events or otherwise. You are cautioned not to put undue reliance on these forward-looking statements.
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