Sustainability Report 2014 Lek d.d.

7 Company Profile Table 2: Major environmental and social impacts 7 Indicator Unit 31. 12. 2014 31. 12. 2013 Index 2014/2013 HSE objectives by 2015 Status 2014 * The figures differ from those published in the Sustainability Report 2013, as previously stated under the Notes of Table 1. ** The definition of LTIR and TRCR indexes as well as the formula for their calculation are given under Item 3.3.2 Monitoring work-related accidents. *** The table shows the efficiency of use for all waters at Lek (for technological and cooling purposes). * The efficiency of use for all waters at Lek (for technological and cooling purposes) is shown. ** 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. Comparison of the volume of waste between 2010 and 2014 is realistic only if myceliumwaste is subtracted from the total amount of waste. In 2014, the volume of myceliumwaste amounted to 25,404 tonnes. Total waste in 2014 thus amounted to 9,263 tonnes, corresponding to a slightly less than 30% reduction in volume compared to 2010. *** In 2014 we recorded injuries of all associates (Lek’s own employees and those employed through agencies). In previous years we evaluated the index only in cases when Lek’s associates were injured. 1.2.2 Health, safety and environment (HSE) objectives and their realization 8 In the field of HSE, Lek, a Sandoz company, pursues Novartis long-term global objectives set for the period up to 2015, while implementing annual short-term goals. Progress is monitored annually for individual sites and for the company as a whole. Data for reporting requirements is collected and confirmed in the Novartis Data Management System (DMS). We are committed to enhancing our environmental perfor- mance 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 pharmaceutical ingredients differ greatly from site to site, and so do their impacts, particularly those pertaining to the environment (waste, atmospheric emissions, and others). By indicating impact management we present our annual objectives for 2015 by individual Lek sites together with the progress each site made towards 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. It is amended, if necessary, at every revision of the Health, Safety and Environment Rules. Efficiency of energy resource use GJ/t 255 299* 85 Water use efficiency*** m 3 /t 757 841* 90 Waste volumes – efficiency t waste/t product 7.40 8.25* 90 VOC emission – efficiency t VOC/t product 0.021 0.032* 66 LTIR** – work related injuries 0.22 0.04 550 and illnesses involving days away from work (Lost Time Injury and Illness Rate) TRCR** – work-related injuries 0.42 0.38 111 and illnesses requiring more than basic first aid (Total Recordable Case Rate) Improving water use efficiency by 10% over 2010.* Realized. Water use efficiency improved by 30% . Year 2010: 1,079 m 3 /t Year 2014: 757 m 3 /t Improving energy efficiency by 10% over 2010. Realized. Energy efficiency improved by 27% . Year 2010: 348 GJ/t Year 2014: 255 GJ/t Reducing VOC emissions (h-VOC and nh-VOC) to the air Realized. Emissions reduced by 61% . by 20% over the 2010 figures. Year 2010: 258 t Year 2014: 100 t Reducing waste volumes by 10% over 2010. Realized.** Year 2010: 13,125 t Year 2014: 34,667 t or 9,263 t (excluding mycelium waste) Reducing LTIR to 0.1. Not realized.*** 0.22 (0.16 for Lek associates) 7 GRI Indicators G4-EN5, G4-LA6 8 GRI G4-DMA