Sustainability Report 2013 Lek d.d.

Sustainability Report 2013 – Lek d.d. Environment / Labour 48 Lek HSE systems Internal audits of the HSE service planned on an annual basis were performed. Concurrently, internal audits of the company’s compliance with ISO 14001:2004 and OHSAS 18001:2007 requirements were carried out. Internal Novartis and Sandoz audits are more extensive, cove- ring all areas of HSE on the part of the site being audited: environmental protection, occupational safety and health, chemical safety, fire safety, biological safety, explosion safety, and BCM and NEM. The frequency of audits de- pends on the nature of production, at API production sites; they take place every two to three years, whereas at pharmaceuticals production locations they are perfor- med every three to four years. These audits also assess compliance with ISO 14001:2004, OHSAS 18001, and the EMAS Directive. The results of internal audits performed in 2013 showed the high level of the company’s complian- ce with the statutory requirements as well as internal and external standards in all the areas. Corrective action was taken on an ongoing basis. Environmental performance assessment with regard to our general and individual objectives is an integral part of the Management Review procedure. In 2013 we met the basic EMAS requirement for verification of compliance with the provisions of the EMAS Directive. From the environmental verifier we obtained a statement that we operate in compliance with applicable legal require- ments with regard to the environment and furthermore, that the data and information from the environmental statement provide a reliable, credible and true picture of organization’s operations at all Lek sites. In line with Novartis and Sandoz policy, Lek is committed to continuous improve- ment of environmental performance in compliance with local and national programs. 3. Labour "It is all about people. Cooperation. Development. Excellen- ce" is the slogan of our human resources policy. Its priority task is to design processes, tools and systems in the field of human resource management. Considerable empha- sis is placed on talent development, succession planning, compensation of achievements, appropriate organizational development and training. Our HR team continually strives to ensure that all the processes are performed profession- ally and in accordance with applicable standards. The policy supports the basic business orientations, aiming to achieve a high level of innovation, growth and better productivity in the reporting year. Lek, a Sandoz company, is creating a working environment of business opportunities and personal challenges, charac- terized by creative and dynamic work which offers a unique opportunity of working in international pharmaceutical development and research teams. In 2013 there were 8 labour court proceedings against Lek, 4 new lawsuits were filed, other proceedings continue from 2012. 3.1 Human resource policy 70 Reporting methodology The reporting methodology used at Lek, a Sandoz company, enables monitoring of absolute indicators and trends for individual critical HSE aspects. HSE data is collected, recorded, verified and confirmed within a uniform Novartis reporting system in the Data Management System (DMS), whereby their transparency and comparability is ensured. Reporting frequency de- pends on the relevance of the reported data (monthly, quarterly or annually). Collected data serves as a basis for statutory reporting to ministries and other interested stakeholders, whereas once a year it is subject to review within the environmental management review performed by the organization's top management according to the EN ISO 14001:2004. 70 GRI G4-DMA, GRI Indicator G4-LA16