Sustainability Report 2012 Lek d.d.

Sustainability Report 2012 – Lek d.d. Environment 36 Direct emissions (GHG1) 45 data include: • Dinitrogen monoxide (N 2 O) in the equivalents of CO 2 46 , • Fluorinated hydrocarbons (hidrofluorocarbons - HFC) in the equivalents of CO 2 47 and • Other greenhouse gases (methane and other) in the equivalents of CO 2 . 48 The Lendava and Menge‰ sites participate in trading with CO 2 emission vouchers. According to the law, we have the obliga- tion to report to the Ministry of the Environment and Spatial Planning, and to pay an environmental fee. In 2012, total direct and indirect greenhouse gas emissions were reduced at the Lendava, Menge‰ and Prevalje sites. The quantities of direct and indirect emissions at the level of Lek diminished. Until recently, direct emissions (GHG1) at the Lendava site mainly resulted from organic waste incineration. As a result of the mycelium waste released to a biogas plant for treatment, their volumes diminished in 2012. Indirect emissions (GHG2) mainly result from purchased electricity, their volumes in 2012 showing a drop following the slight upward trend in the previous years. The savings are documented, still accounting for a minor percentage of total CO 2 emissions. 49 At the Menge‰ site, the main causes of CO 2 (GHG1) emissi- ons are natural gas combustion (> 90%) in the burning devi- ces. One of the contributory factors was the manufacture of cutting-edge technology products of higher energy complexity. The increasing emission volumes recorded in the 2009 – 2011 period were also due to new products of high complexity. Consequently, emission abatement is our top-priority task. It was mainly achieved through systemic energy manage- ment, process changes, implementation of new technologi- cal solutions, and installation of energy- and environmentally efficient devices. 2.6.6 Volatile organic compounds (VOC) 50 In accordance with Novartis' recommendations on the use of alternative solvents in production, a systematic process of replacing halogenated solvents with non-halogenated ones is underway at Lek. In 2012, total VOC emissions saw a considerable decrease, whereas the efficiency per tonne of product improved significantly. At Menge‰, a device for removal of halogenated solvents from exhaust air using state-of-the-art cryogenic condensa- tion is used. Due to the final replacement of methylene chlo- ride with ethanol at the Prevalje site, halogenated solvents are no longer used. 2.6.5 CO 2 and other greenhouse gases At Lek, direct emissions (GHG1) result from the burning of fuels and the incineration/treatment of flammable organic substances, production processes (e.g. fermentation) and the use of company cars. The group of GHG1 also includes some other gases used in or arising from Lek processes, e.g. HFC, N 2 O and methane. CO 2 is considered an indirect greenhouse gas (GHG2). It is generated as an equivalent to the purchased electricity, heat and steam at the site where they are produced. Lek (skupaj) 44 GRI Indicator EN16 45 RC KPI 10 46 RC KPI 11 47 RC KPI 12 48 RC KPI 13 49 GRI Indicator EN18 50 RC KPI 9 GHG1 2008 t CO 2 12,492 1,953 11,523 2,027 27,995 5.8 2009 t CO 2 11,636 2,371 12,310 2,027 28,344** 8.2 2010 t CO 2 12,071 3,005 14,353 1,955 31,384** 7.0 2011 t CO 2 11,839 3,699* 15,135 1,999 32,673* 6.3 2012 t CO 2 10,801 2,928 13,469 1,821 29,019 4.9 GHG2 2008 t CO 2 14,364 31,721 10,134 2,661 58,880** 12.2 2009 t CO 2 15,153 34,105 10,715 2,548 62,521** 18.0 2010 t CO 2 15,870 33,218 11,879 2,407 63,374** 14.1 2011 t CO 2 16,023 35,117 11,938 2,482 65,560** 12.6 2012 t CO 2 12,438 38,434 11,970 2,530 65,372 11.0 Year Unit Lendava Ljubljana Prevalje Menge‰ Lek (Total) Efficency (Lek) (t of CO 2 /t of product)** Carbon dioxide and other gases contributing to the greenhouse effect 44 * Changes of data as a result of changed data on production output for the Ljubljana site. ** The data differs from the data in the 2011 report due to reconciliation of the sum total of decimals rounded off.