Sustainability Report 2010 Lek d.d.

31 Active Environmental Policy 3.2 Environmental protection expenditures 31 We make continuous investments in environmental manage- ment and environmental impact mitigation. At the Ljubljana site, we continued with the process of reconnecting the ducts for discharge of VOC emissions to a new device for thermal treatment of gases. Values of emissions discharged from the device are below the prescribed limit values. Under specific conditions, the device also operates in the so-called autothermal mode. Consequently, no gas addition into the combustion chamber burner is required during the oxidation of solvents. In October 2010, a device for removal of halogenated VOC air emissions by means of cryocondensation (condensation with liquid nitrogen as the refrigerant) started to operate at the Menge‰ site. An amount of EUR 0.7 million was invested in the project. In addition to existing plants, new plants which represent a source of halogenated solvent discharges will be connected to the device. Minor projects were underway at other sites. Total environmental protection expenditure amounted to EUR 2.2 million. 3.3 Strategic projects The principles of our environmental policy and accountability are integrated into the key strategic projects for improving and optimization of business processes. Connect project As the purpose of Novartis Connect project is to identify and use the opportunities for rationalization and economy of business operations, it was carried over into the year 2010. Within the project, Novartis companies compare the supply, demand and processes in several business categories in the same country or in the same area, thus mutually replac- ing existing solutions with more rational ones if found during benchmarking. This also applies to environmental issues. With the cooperation of Sandoz Austria, this project repre- sents one of the major partnerships at the Novartis corporate level. Explosion safety – ATEX At Lek, the process of harmonizing all the production sites, lines and systems with explosion safety laws and regula- tions has been underway since 2006. After the completion of ATEX certification of installations for buildings, lines and sys- tems at our production sites, we resumed in 2010 the proc- ess of maintenance certification which should be completed within 5 years of the initial installation certification, confirm- ing the company’s adherence to changes, and an appropri- ate level of Ex equipment maintenance. LEAN – Lean Production Initiative At all our production sites, the Lean Production Initiative is in progress, aimed to increase the efficiency of production in all of its aspects. Within the initiative, various projects are underway to boost productivity and to cut the use of raw ma- terials, packaging, energy and other natural resources in in- dividual production process phases. Their purpose is to raise our competitive position and to reduce the level of environ- mental pollution per product unit. The projects performed in 2010 in the solid dosage forms production as part of the initiative, saved us more than EUR 3 million. The major part of the savings was accounted for by improved production yields and, consequently, by reduced waste volumes and improved production efficiency, all of which resulted in lower specific use of energy. 3.4 Reuse of raw materials In API manufacturing, the recycling and reuse of organic sol- vents are integrated into the process of manufacturing pro- cedure development wherever feasible. In 2010, as much as 88% of all the organic solvents used were recycled and reused in the manufacture. The highest level of reuse was achieved at the Lendava site where almost 97% of the sol- vents used underwent recycling. The remaining solvents which, according to the pharmaceutical industry criteria, fail to achieve a level of purity sufficient for reuse, are collected separately in accordance with their composition and calorific value, and released to authorized providers for further treat- ment or disposal. At the Menge‰ site, non-halogenated solvent waste having a solvent content higher than 80% and being suitable for co-incineration in a natural gas burning device is used as a secondary fuel for the operation of a device generating heat and vapor for manufacturing purposes. Since adequate combustion conditions are provided, emissions generated in the process are comparable to those resulting from the combustion of environment-friendly energy resources such as natural gas and possibly industrial fuel. In the field of non-hazardous waste, additional activities were performed for systemic segregation, collection and prepara- tion of waste for recycling. Several sorting tests of municipal waste were carried out to reduce the waste volumes intend- ed for disposal, and to increase the waste volume for reuse. 31 GRI Indicator EN30 - partly