Sustainability Report 2012 Lek d.d.

Company Profile Sustainability Report 2012 – Lek d.d. 16 11 Disclosure GRI 2.10 12 Disclosures GRI 3.2 and 3.5 13 Disclosure GRI 3.13 In addition to environmental disclosures, a growing selecti- on of qualitative and quantitative indicators of economic and social impact (EMAS and GRI core indicators) were included in the report. The process of their identification and selection was carried out by the qualified services, based on the key characteristics of Lek’s business activity and situation. All the reports, also containing the EMAS Environmental Sta- tement, are available at www.lek.si/en/social-responsibility/ . Comprehensive reporting is also carried out within Novartis, which in turn performs internal controls and assesses the conformity of the reporting indicators. Furthermore, Lek’s data for a broad set of indicators is included in Novartis’ indicators (available at: www.novartis.com , www.corporatecitizenship. novartis.com in www.novartisfoundation.org ) . Their collection is performed in compliance with the improvement guidelines provided by Novartis internal HSE audits. We have not yet decided to seek external assurance for our sustainability re- porting, but we are considering this possibility. 13 1.3.5 Awards and acknowledgements 11 Through their outstanding achievements, our experts once again proved their first-class knowledge, expertise and experience. Major recognitions include: • The Golden Innovation Award awarded by the Cham- ber of Commerce and Industry of Slovenia, and • Publication of an article by the researchers of the Sandoz Development Center Slovenia in Angewandte Chemie, a renowned general chemistry journal. Awards granted at the level of Sandoz and Novartis: • The highest Sandoz scientific award for special achie- vements of our scientists, • Sandoz’ annual Technical Operations Award, • Sandoz annual Human Resources Award, • Sandoz annual award in the Occupational Health and Environment Management category for the Ljubljana Solids and Steriles Production site (for the 3 rd year running), • Sandoz annual Anti-infectives Award, • Sandoz quarterly awards for best leaders development, sense of urgency, and operational excellence, • Sandoz ExCEEd Award in the Rx segment, • Global Novartis IT excellence award “Global Excellen- ce – Winning Culture Award”, • Global Novartis Finance for People Development award, • Sandoz and Novartis Quality annual Excellence Award to the Slovenian Quality team. In addition to the above, Lek received the following awards: • The Lendava Packaging Center won an award for Outstanding Economic Achievements presented by the Lendava municipality. • For the 10 th year in a row, Lek won the TOP 10 Education Management Award, thereby consolidating its position among the 10 Slovenian companies with the highest level of professionally planned and systematic invest- ments in knowledge and training of their employees. 1.4 Development and reporting framework In accordance with the Novartis Corporate Citizenship Policy, we strive for transparent and comparable public reporting. In addition to the economical impacts of our business operations, we also monitor and measure their societal and environmental impacts. Every year since 2010 , we have compiled a comprehen- sive report on sustainable development, at the same time reporting in compliance with the requirements of RCI, EMAS Scheme and GRI Guidelines. Even before 2010, we prepared environmental reports and reports within the Responsible Care Initiative (RCI). Lek’s reporting has been based on the RCI for several years now, the present report being an upgrade of the previous reporting model. The report meets the requirements of Annex IV to Regulation No. 1221/2009 (EMAS), disclosing them also at the site level. Lek’s reporting in compliance with the GRI Guidelines uses reporting guidelines at Application Level B. Reporting in accordance with RCI requirements Reporting in accordance with EMAS Eco-Mana- gement Scheme requirements Reporting in accordance with GRI Guidelines