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Shire Global

Investor Relations

Responsibility at Shire

Annual Responsibility Review 2016

Chief Executive Officer's Letter

2016 was a transformative year for Shire

We are now the leading global biotechnology company in rare diseases. To support our leadership position, this year we embarked on a number of key activities to improve our approach to Responsibility.

Flemming Ornskov, MD, MPH
CEO

2016 Performance Highlights

$1.3bn

invested in targeted R&D during 2016

60,000

patients supported by our U.S. patient assistance programs

66%

of total waste diverted from landfill

$11m

provided in educational grants

37

clinical programs in our development pipeline

$254m

spent on small businesses in the U.S. as part of our Supplier Diversity Program

Responsibility Materiality Matrix

A key component of our approach to Responsibility is looking to the future to identify opportunities where we can use our skills and resources for the greatest impact. To identify these opportunities, we carried out an extensive Responsibility materiality assessment to understand and prioritize our most important Responsibility issues.

The assessment reaffirmed the ongoing priority of improving access to medicine and ensuring product quality, safety, and efficacy. It also highlighted the importance of attracting and developing Shire’s talent, as well as operating in an ethical and transparent way.

  • Matrix
  • List
Responsibility categories
Supporting our patients
People and culture
Sustainable operations
Ethics and transparency
Ability of Shire to directly influence the issue
Moderate
High
Rank of issue
81 - 20

Top 20 Responsibility Issues

External Stakeholder Inportance and Impact on Shire's business
1
2
3
5
4
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
External Stakeholder Inportance and Impact on Shire's business
1 Access to Medicine Supporting our patients
3 Innovation and R&D Supporting our patients
8 Responsible Product Use Supporting our patients
9 Clinical Trial Conduct and Transparency Supporting our patients
14 Product Counterfeits Supporting our patients
17 Information Security and Privacy Supporting our patients
4 Talent Attraction and Development People and culture
10 Diversity and Equal Opportunity People and culture
11 Engagement with Local Communities People and culture
13 Employee Health, Safety, and Wellness People and culture
2 Product Quality, Safety, and Efficacy Sustainable operations
7 Responsible Manufacturing and Sourcing Sustainable operations
12 Environmental Management and GHG Emissions Sustainable operations
15 Intellectual Property Protection Sustainable operations
16 Environmental Impacts of Products Sustainable operations
5 Ethical Business Conduct Ethics and transparency
6 Governance, Accountability, and Transparency Ethics and transparency
18 Human Rights Ethics and transparency
19 Animal Welfare Ethics and transparency
20 Bioethics Ethics and transparency
Rank
Category
Description
Name Category Rank
Access to Medicine Supporting our patients 1
Animal Welfare Ethics and transparency 19
Bioethics Ethics and transparency 20
Clinical Trial Conduct and Transparency Supporting our patients 9
Diversity and Equal Opportunity People and culture 10
Employee Health, Safety, and Wellness People and culture 13
Engagement with Local Communities People and culture 11
Environmental Impacts of Products Sustainable operations 16
Environmental Management and GHG Emissions Sustainable operations 12
Ethical Business Conduct Ethics and transparency 5
Governance, Accountability, and Transparency Ethics and transparency 6
Human Rights Ethics and transparency 18
Information Security and Privacy Supporting our patients 17
Innovation and R&D Supporting our patients 3
Intellectual Property Protection Sustainable operations 15
Product Counterfeits Supporting our patients 14
Product Quality, Safety, and Efficacy Sustainable operations 2
Responsible Product Use Supporting our patients 8
Responsible Manufacturing and Sourcing Sustainable operations 7
Talent Attraction and Development People and culture 4

Maintaining the availability and provision of affordable medicines for all and ensuring that people who need treatments can access them, afford them, and know how to use them.

Protecting the health and welfare of animals to ensure they are not caused unnecessary pain or suffering and reducing the use of animals to the minimum number required.

Consideration for the moral and ethical implications in all aspects of research, innovation, product development and pricing, clinical testing, and marketing.

Undertaking scientifically controlled studies of the safety and effectiveness of therapies, as well as the responsible provision of clinical trial data in a way that safeguards the privacy of patients and preserves trust in regulatory systems.

Respect for and fair treatment of all individuals regardless of race, ethnicity, gender, sexual orientation, socioeconomic status, age, physical ability, and religious and political beliefs.

The creation of safe and comfortable working conditions for employees, including occupational health and safety management, access to medical services, provision for stress management, and improvements in physical wellbeing.

Developing positive and active relationships with local and therapeutic communities through charitable donations, employee volunteering, and support for partner organizations working to improve the wellbeing of these communities.

The direct and indirect impacts of products on the environment across the product lifecycle, from design, development, testing, and material sourcing to manufacturing, distribution, customer use, and end-of-life.

Using comprehensive and systematic management tools to identify, monitor, and manage material environmental issues, such as energy, waste, water, chemicals use, biodiversity, and resource scarcity.

Operating responsibly and transparently in compliance with all relevant laws, regulations, and company Codes of Conduct. This includes ethical and transparent communication, promotion, and marketing and sales of products and services, as well as efforts to prevent bribery and corruption among all employees.

Implementation of strong governance and accountability systems to manage risks, ensure transparency, and build trust in all aspects of operations and engagements with stakeholders.

Upholding and respecting rights inherent to all human beings, including, but not limited to, the rights to life, liberty, and equality, freedom from slavery and forced labor, and freedom of expression and association.

Protecting information and information systems from unauthorized access, use, disclosure, disruption, modification, or destruction to ensure confidentiality, integrity, and availability of information.

Investing in innovation and research, including collaborating with stakeholders on research and development (R&D), sharing knowledge, and supporting diverse sales channels to sustain product pipelines and create pioneering innovations that target rare diseases.

Safeguarding any work, inventions, designs, or creations of the mind through trademarks, copyright, patents, and other methods that prevent illegal and uncredited iterations of work without proper attribute.

Protecting product integrity for the safety of patients and addressing counterfeits through consideration of risk management and strategy along the value chain.

Ensuring products and therapies are effective and safe for patient use, with limited side effects, and ensuring all safety and quality assurance standards are met.

Promoting the responsible use of drugs and therapies by patients to maximize the benefits and reduce the risks of negative impacts on the lives of the user and others.

Ensuring the consideration of ethical, quality, and health, safety, and environmental aspects in the procurement or sourcing of raw materials and the manufacturing of products across the entire supply chain.

Recruiting and retaining employees with the skills, experiences, and capabilities for the current and future success of the business, industry, and the wider economy.

Supporting our Patients

60,000

Every day, we strive to make a meaningful difference in the lives of our patients. We are committed to providing help and support to our patients in a number of ways. For example, in 2016, our U.S. patient assistance programs reached approximately 60,000 patients.

Access to medicines

We are dedicated to using our specialist expertise to develop innovative treatments that fulfill unmet patient needs. We are committed to improving access to these essential treatments by helping people get a correct and timely diagnosis. We also want to remove barriers that limit the availability and affordability of treatments for those who need them.

Awareness, advocacy, and responsible product use

One of our most important responsibilities is to share our knowledge to increase understanding of rare diseases. We are proud of our long history supporting patient advocacy organizations, helping them give patients a voice and building networks of individuals with similar conditions.

In 2016, we collaborated with 180 different patient organizations, supported 26 different rare disease awareness events, and provided $11 million in educational grants and more than $25.9 million in donations to U.S. healthcare-related charitable organizations.

Supporting patient and local communities

We understand that our impacts go beyond our Company and extend into the communities where we live and work. Our activities are focused on both the therapeutic and the local communities we serve.

In February of 2016, we committed $3 million over three years to SeriousFun Children’s Network. Our support will enable nearly 1,000 children, many with rare diseases, to attend SeriousFun’s transformative camps and programs free of charge.

People and Culture

24,000

Our approximately 24,000 people are fundamental to our continued success. We want to support our employees to learn and grow continuously while doing their best work.

Talent attraction and development

We strive to maintain a people-centered organization. We aim to attract the best people and invest in training and development to develop a culture that inspires, motivates, and rewards our people for performance.

In 2016, 164 employees, across nine countries and nine of 13 global functions, won a CEO Award for outstanding performance.

Employment by region as at December 31, North america 58%, Europe 35%, Latin America 2%, Asia 5%, Total employees 23,906
U.S. employee ethnic minorities as at December 31, Non-minority 67%, minority 32%, unstated 1%, Total U.S. employees 13,769
Shire global employees gender split as at December 31, Total male 11,583 and female 12,323, male 48% down 2% and female 52% up 2%
Shire senior managers gender split as at December 31, total male 180 and total female 91, Male 66% down 4% and Female 34% up 4%
Shire Directors gender split as at December 31, total male 8 and female 4, male 67% down 6% and female 33% up 6%

Employee volunteering

In October of 2016, we hosted our second annual Global Day of Service. More than one-third of our workforce donated over 25,000 hours to volunteer projects in 150 locations worldwide. Many of these projects were focused on helping children overcome disadvantages.

Sustainable Operations

66%

At Shire, we believe there is a clear relationship between operating sustainably and being a global leader in developing breakthrough therapies. We promote sustainable and efficient use of natural resources, waste minimization, recycling, energy efficiency, and responsible product stewardship. In 2016, we diverted 66 percent of total waste from landfill.

Environmental management

Reducing our energy use not only helps conserve natural resources and reduce GHG emissions, but also improves our business performance. At our facility in Vienna, Austria, we converted to LED lighting, installed variable speed motor systems, and optimized cooling and ventilation. These efforts reduced energy use by 1,680,000 kWh and will create annualized savings of over $100,000.

Responsible sourcing

Supplier diversity is a key part of our responsible sourcing program, providing opportunities to small businesses owned by underrepresented groups. In the U.S., we spent approximately nine percent of our procurement with companies in our Supplier Diversity Program, equating to about $254 million.

Total GHG emissions 23.3 metric tons/revenue (US$m)
Scope 1 emissions 148,000 metric tons per CO2e
Scope 2 emissions 118,000 metric tons per CO2e - market-based methods
Total waste 23,210 metric tons
Total water consumption 4,216,000 cubic meters
We reduced the shipping weight of our Elvanse product by 77 percent and number of airfreight shipments by 74 percent

Ethics and Transparency

100%

We are committed to the highest standards of ethics and integrity. As part of this commitment, we disclosed 100% of all applicable clinical trials on public websites. This disclosure is one way we hold ourselves accountable for operating ethically and responsibly, and ensuring we are transparent with our stakeholders.

Our response to the Modern Slavery Act

In response to section 54 of the Modern Slavery Act 2015, we have prepared a statement outlining our policies and actions we have in place to identify and tackle the risks of modern slavery throughout our business and supply chain.

To view this statement, please visit shire.com.


Clinical trial transparency

This year, we have been recognized by AllTrials as the number one pharmaceutical company for clinical disclosure. We continue to improve our dedicated clinical trials website, shiretrials.com, providing easy access to detailed information, such as Clinical Study Reports, for patients and other stakeholders. We post 100% of all applicable clinical trials on public websites.

View all of Shire's policies here: shire.com





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