Sustainability Report 2013 Lek d.d.

5 Company Profile Table 2: Major environmental and social impacts 6 Indicator Unit 31. 12. 2013 31. 12. 2012 Index 2013/2012 Objectives by 2015 Status 2013 * The figures differ from those published in the Sustainability Report 2012 due to adjustments made to the data on production output and use of raw materials previously stated under the Notes of Table 1. These result in changes in the calculation of efficiency in all the areas. ** The definition of LTIR and TRCR indicators as well as the formula for their calculation are indicated under Item 3.3.2 Monitoring work-related accidents. *** See explanation in Section 2.5.1. * Since 2011, in accordance with Novartis' reporting methodology, waste includes only the waste leaving the site and not that treated on the site. In 2012 mycelium waste generated by the fermentation production process at Lendava was redirected from the site's incinerator to a contractor biogas plant for treatment; therefore, the total mycelium waste volume is now reported as waste treated outside the site. The volume of mycelium waste amounted to 23,456 t in 2013. Comparison of the volume of waste between 2010 and 2013 is realistic only if mycelium waste is subtracted from the total amount of waste. Total waste in 2013 thus amounted to 8,401 tons, corresponding to a 24% reduction in volume compared to 2010. 1.1.2 Health, safety and environment (HSE) objectives and their realization In the field of HSE, we pursue Novartis long-term global objec- tives set for the period up to 2015, while implementing annual short-term goals. Progress is monitored annually for individu- al sites and for the company as a whole, Data for reporting requirements is collected and confirmed in the Novartis DMS (Data Management System) system. Our environmental performance is being improved through: • regular assessment of the HSE system performance, • open communication with internal and external publics and • involvement of all employees in the system of care for the environment. Production processes for pharmaceuticals and active phar- maceutical ingredients differ greatly from site to site, and so do their impacts, particularly those pertaining to the en- vironment (waste, atmospheric emissions, and others). To ensure better transparency of our efforts to manage the relevant environmental impacts, in this year's report we present our annual objectives by site, thereby enabling us to track the role of each site in the realization of our long- -term objectives over the period up to 2015. Objectives are set and implemented on the basis of the Lek HSE Policy which is amended, if necessary, at every revision of the Health, Safety and Environment Rules. Efficiency of energy resource use GJ/t 303 302 100 Water use efficiency m 3 /t 853 835* 102 Waste volumes – efficiency t waste/t product 8.27 5.05* 164*** VOC emission – efficiency t VOC/t product 0.033 0.038* 87 LTIR** – work-related injuries 0.04 0.05 80 and illnesses involving days away from work TRCR** – work-related injuries 0.38 0.35 109 and illnesses requiring more than basic first aid Improving water use efficiency by 10% over 2010. Realized. Water use efficiency improved by 24% . Year 2010: 1,124 m 3 /t Year 2013: 853 m 3 /t Improving energy efficiency by 10% over 2010. Realized. Energy efficiency improved by 17% . Year 2010: 363 GJ/t Year 2013: 303 GJ/t Reducing VOC emissions (h-VOC and nh-VOC) into Realized. Emissions reduced by 51% . the air by 20% over the 2010 figures. Year 2010: 258 t Year 2013: 126 t Reducing waste volumes by 10% over 2010. Partly realized.* Year 2010: 11,000 t Year 2013: 31,857 t or 8,401 t (excluding mycelium waste) Reducing LTIR to 0.1. Realized. 0.04 6 GRI Indicator G4-LA6