Sustainability Report 2014 Lek d.d.

Sustainability Report 2014 – Lek d.d. Environment 30 2.1.6 Indirect environmental impacts 34 As indirect environmental impacts we consider primarily impacts on the suppliers’ side. Therefore we expect our suppliers to be committed to the principles of the Novartis Corporate Citizenship policy. By signing a supply agreement, the supplier undertakes the commitment to mitigate his environmental impact, environmental accountability being one of the key supplier selection or confirmation criteria. The signing of a supply agreement should be preceded by an environmental audit of the supplier's operations. The agreement constitutes the supplier's guarantee to comply with all applicable HSE laws and regulations, fair work practices and unlawful discrimination. 35 For waste management, we only select suppliers that have all the required authorizations, and only those suppliers that are recorded as contracting providers with the respective Ministry. Transport is one of the major recognized sources of indirect environmental impact of our operations. It is mitigated by more extensive use of teleconferencing and videoconferen- cing which replace long-distance business travel. We regularly monitor fuel consumption, mileage and CO 2 emissions for all the fleet cars. This data is reported quar- terly into the Novartis database. For 124 company cars in 2014 (115 in 2013), a total trav- eling distance of 3,227,342 km (3,380,216 in 2013) was recorded, with fuel consumption of 231,360 litres (209 m 3 in 2013) and CO 2 emissions of 430 tonnes (465 in 2013). The indirect impact of transport is also taken into account in the process of selecting suppliers in categories such as placing orders for packaging materials (see Item 2.2.4). 34 GRI Indicator G4-EN30 35 GRI Indicators G4-EN33, G4-LA15 36 EMAS Core Indicator, GRI Indicator G4-EN1 2.2.1 Recycling of hazardous and non-hazardous waste Waste reuse and recycling are integral parts of our API pro- duction processes. We recycled and reused 91% of the total quantity of organic solvents which is the same as in 2013. In Lendava, the leading site in terms of waste reuse in recy- cling, the percentage of reused organic solvents amounted to as much as 97% (identical to the figure recorded in the previous three years), and to 76% in Menge‰. Currently, a project aiming to increase the proportion of regeneration at the Lendava site is being implemented. The remaining sol- vents which, according to the pharmaceutical industry cri- teria, fail to achieve a level of purity sufficient for reuse are collected separately in accordance with their composition and calorific value. Further treatment or disposal is the re- sponsibility of authorized contract providers. At the Menge‰ site, non-halogenated solvent waste having a solvent content higher than 80% and being suitable for co-incineration in a natural gas burning device is used as a secondary fuel for the operation of a device generating heat and vapour for manufacturing purposes. Since ade- quate combustion conditions are provided, emissions gene- rated in the process are comparable to those resulting from the combustion of environment-friendly energy resources such as natural gas and light industrial fuel. In 2014, we replaced the existing steam boiler at the Menge‰ site with a new boiler with better thermal efficiency. At the same time, we expect to obtain an environmental permit for co-incine- ration of non-halogenated waste solvents with high calorific potential in the new boiler in 2015. In the field of non-hazardous waste, systemic upgrades of segregation, collection and preparation of waste for recycling are continuously carried out. All biodegradable waste (waste mycelium, waste purple coneflower (Echinacea) and fennel plants, was redirected to a bio-gas works for reprocessing. 2.2.2 Mass flow of materials Changes in the structure and volume of pharmaceutical pro- duction cause an annual fluctuation of mass flow of materi- als at some of the Lek sites. There is no such fluctuation at the Lendava production and Prevalje sites, where one to two products are manufactured and as therein, the change in the volume of API production also means there is a comparable change in the use of raw materials. In 2014 we recorded an increased use of raw materials (by 11%), due to increased production volume at all sites. 2.2 Raw materials and natural resources * Total quantity of materials purchased within the reporting period to ensure seamless progress of the manufacturing process to the finished product phase (including packaging but exclusive of fuels, water and manufacturing equipment). 2010 t 6,456 9,015 14,404 3,513 33,388 2011 t 6,811 8,804 16,898 3,858 36,371 2012 t 7,548 9,861 15,707 3,979 37,095 2013 t 8,594 8,177 14,497 4,285 35,552 2014 t 8,891 9,901 15,646 5,063 39,501 Year Unit Lendava Ljubljana Prevalje Menge‰ Lek (Total) Table 3: Annual mass flow of various materials used* in tonnes 36