Sustainability Report 2013 Lek d.d.

17 Company Profile In addition to environmental disclosures, a growing selection of qualitative and quantitative indicators of economic and so- cial impacts (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 Environmen- tal Statement, are available at http://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.corporate- citizenship.novartis.com and www.novartisfoundation.org ) . Their collection is performed in compliance with the im- provement guidelines provided by Novartis internal HSE audits. For 2013 we report according to GRI G4 guidelines. We have not yet decided to seek external assurance for our sustainability reporting, but we are considering this possibili- ty. In the process of determining the content of the report on sustainable development, we identified the material aspects, presented in the table below, with regard to economic, environmental and social impacts of Lek d.d. operations. 15 The material aspects listed apply to Lek d.d. and our stake- -holders (patients, associates, shareholders, healthcare partners and local communities). 13 GRI Disclosure G4-18 14 GRI Disclosures G4-28, G4-29, G4-30 15 GRI Disclosures G4-19, G4-20, G4-21 1.4 Development and reporting framework 13 In accordance with the Novartis Corporate Citizenship Policy, we strive for transparent and comparable public re- porting. In addition to the economic impacts of our business operations, we also monitor and measure their societal and environmental impacts. Every year since 2010, we have compiled a comprehensive report on sustainable development, at the same time reporting in compliance with the requirements of the RCI, EMAS Scheme and GRI Guidelines. The Sustainability Report was last published in September 2013. Even before 2010, we prepared environmental reports and reports within the Responsible Care Initiative (RCI). 14 Economic impact - Economic performance - Market presence Environmental impacts - Materials - Air emissions - Transport - Supplier - Energy - Waste waters - Compliance Environmental - Water and waste Assessment - Environmental grievance Mechanisms Social aspects Labour practices Human rights Society Responsibility for and decent work - Non-discrimina- - Local products - Employment tion communities - Labelling of - Health and safety - Child labour - Anti-competitive products at work - Forced labour Behaviour and services - Training and - Marketing education communication - Equal Remuneration for men and women - Labour practices grievance mechanisms Material aspects of sustainable development of Lek d.d.