Sustainability Report 2014 Lek d.d.

19 Company Profile In addition to environmental disclosures, a growing selecti- on of qualitative and quantitative indicators of economic and social 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. The Sustainability Report which contains the EMAS Environ- mental Statement, is 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 improve- ment guidelines provided by Novartis internal HSE audits. For 2014 we report according to GRI G4 guidelines. We have not yet decided to seek external assurance for our sustainability reporting. 15 In the process of determining the content of the report on sustainable development, we also identified aspects that were exposed in different ways by our stakeholders: through questions raised on Community Partnership Days, interaction with the professional public at expert meetings, questions raised by employees (Workers’ Council, Workers’ Assembly and their representatives in the company’s management bodies), contact with regula- tors (Agency for Medicinal products and Medical Devices) and through media questions. In this way we shaped the economic, environmental and social impacts of Lek d.d. operations. The material aspects listed apply to Lek d.d. and our key stakeholders: patients, employees, shareholders, healthcare partners and local communities. 1.4 Development and reporting framework 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 develop- ment, at the same time reporting in compliance with the requirements of the Responsible Care Initiative (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 RCI. 14 14 GRI Disclosures G4-19, G4-20, G4-30 15 GRI Disclosures G4-18, G4-33 16 GRI Disclosures G4-19, G4-20, G4-21 Economic impact - Economic performance - Market presence Environmental - Materials - Emissions - Transport - Supplier impact - Energy - Effluents and - Compliance Environmental - Water waste Assessment - Environmental grievance mechanisms Social aspects Labour practices Human rights Society Responsibility and decent work - Non-discrimination - Local communities for products - Employment - Child labour - Anti-competitive - Consumers' - Health and safety - Forced labour behaviour health and safety at work - Labeling of - Training and products and education services - Equal - Marketing remuneration for communication men and women Material aspects of sustainable development of Lek d.d. 16