We help people live healthy lives in a healthy world.

Our priority is to provide access to effective treatment, and this is the basis of the company’s business strategy as well as its approach to sustainability. We ensure drug safety for patients through an uninterrupted supply of essential products, including life-saving drugs.

One in eight medicine packages sold by Polish pharmacies and every third package used in hospitals come from Polpharma. This shows our success, but also the magnitude of the commitment.

The goals of the Sustainable Development Strategy 2022–2025 allow us to responsibly manage our economic, social and environmental impact as well as generate value for our stakeholders.

Sustainability management structure

The key body that oversees sustainability and ESG issues is the company’s Sustainable Development Committee. Its tasks include strategic oversight, risk management, developing recommendations and internal policies, and setting and reviewing impact goals and indicators.

The Committee is headed by a member of the Management Board – the Head of the Finance Department, and its members are the other members of the Board and the heads of the company’s key business areas.

Polpharma’s Sustainable Development and ESG Department is responsible for the day-to-day coordination of ESG tasks, including the reporting process.

The Sustainable Development Strategy was designed in a process that engaged our employees as well as experts and practitioners from the business community. Based on their opinions, a materiality analysis was conducted, which was used as a foundation for the identification of the five main strategic areas of focus.

We have identified ESG topics with the greatest impact on both the company’s business value and on the society and the environment. Polpharma’s key areas of responsibility:

As part of the Strategy, we have developed the following indicators (KPIs), which we report annually. Results for 2024:

• The quality, efficacy and safety of our products are a top priority for us.
• We ensure product quality at every stage of product development, manufacturing, research, storage, distribution and sales by standardising quality processes and implementing mechanisms for continuous improvement and control of implemented processes.
• The standards and practices adopted are in line with legal requirements and current guidelines. We believe that every employee is responsible for the quality of products delivered to the patient and customer. We are enhancing our quality culture by continuously improving the skills of our employees, building awareness and being proactive throughout the value chain.
• Patient and customer expectations as well as the feedback we receive are an important part of improving the quality of our products.
• By following our values (“We act responsibly”, “We act together” and “We act with openness”), we help people live healthy lives in a healthy world.

Polpharma’s human rights commitments are comprehensively governed by the Human Rights Protection Policy. The document is a tool to prevent the negative impacts our Company might exert on human rights as part of its own business operations and throughout its value chain, as well as to mitigate any related risks.

Our priorities as expressed in the Human Rights Protection Policy:

• We implement fair employment practices.
• We do not condone forced or slave labour, or any forms of human trafficking.
• We do not allow child labour.
• We do not accept any forms of discrimination.
• We offer fair pay and decent working conditions.
• We respect the freedom of association and collective bargaining.
• We are committed to protecting the safety, health and wellbeing of our employees.
• We provide friendly workplaces where all employees have equal access to opportunities.

Human rights protection in the value chain.

We expect our suppliers and other partners to act in a way that is compliant with the top standards of business ethics, legal regulations and valid international standards, including those related to human rights. We have described these expectations in the Supplier Code of Conduct.

If human rights violations are detected anywhere in our supply chains, the priority is to clarify the situation and procure that the supplier concerned take corrective action. Having exhausted all the remedies available, termination of the business relationship with the supplier may be considered as a last resort. We are determined to maintain high ethical and legal standards across our supply chains and to ensure respect for human rights.

The key lines of action in response to the opportunities and risks we have identified include:

• Energy efficiency measures, use of clean and renewable energy sources, efforts to reduce greenhouse gas emissions and taking offsetting measures to ensure the transition to climate neutrality.
• Designing products and processes with a view to minimising their impact on the environment and biodiversity throughout the value chain; developing, improving and implementing innovative green technologies and processes and following the principles of green chemistry.
• Minimising pollutant emissions to air, soil and water, including emissions of active substances from production and auxiliary processes.
• Rational and efficient use of natural resources by following the principles of circular economy, such as reducing raw material consumption, minimising waste, use of recycled or reusable materials.
• Minimising adverse environmental impacts by making rational choices regarding means of transport with a minimum carbon footprint and optimising logistics processes.
• Creating a green workplace, which includes following the green office principles, holding green events, promoting green commuting and business travel, or enhancing process digitisation.
• Building a sustainable supply chain by requiring suppliers to comply with certain environmental standards and supporting them in reducing their environmental and climate impacts.
• Making informed buying decisions based on environmental criteria.
• Engaging in responsible marketing activities and educating stakeholders to ensure the appropriate use of products and their proper disposal in order to minimise the penetration of pharmaceutical substances from drugs into the environment.
• Encouraging stakeholders to take environmental action and supporting them in action.

The environmental aspects of Polpharma Group’s activities are governed by the environmental management system. The Environmental Protection Policy and other documents are part of the environmental management system. All of our employees are responsible for respecting and implementing them. Management, including the Management Board, supervises their application.

We comply with legal regulations and with environmental management system standards. We prevent failures and react immediately if they occur.

We continuously measure and analyse our impact on the environment. We set long-term environmental goals for ourselves. We engage in long-term dialogue with stakeholders. We educate, engage and reward our employees for contributing to process improvement. At the same time, we continuously improve our environmental management system and the solutions we apply. We regularly report on our impact and progress in the implementation of environmental goals in publicly accessible reports.

The commitments we make to effectively and successfully manage risks
and opportunities in this area include:

• Compliance with legal and other requirements relevant for OHS and continuous enhancement of standards.
• Ensuring safe and hygienic workplaces by taking advantage of current scientific and technical progress.
• Maintaining and improving the OHS management system to improve occupational safety results.
• A continuous analysis of the company’s processes to eliminate and limit risks in the workplace.
• Regular analyses of business processes to take account of the risks and opportunities related to occupational health and safety and to the OHS management system.
• Taking employee health and safety into account in production process planning and other business activities.
• Preventing work-related injuries and health conditions.
• Applying adequate measures to mitigate risk according to their hierarchy, and in particular prioritising collective over individual safeguards.
• Broadening the knowledge and enhancing the skills of employees at all levels of the organisation and continuously reinforcing a culture of safety in the workplace, as well as promoting health prevention.
• Encouraging employees and other stakeholders to adopt a proactive approach in order to increase their involvement in the process of ensuring safety and in health prevention.

The involvement of top management in the process, coupled with effective cooperation with employees of all levels is of strategic importance for improving the level of safety in the workplace and employee health. Involving employees and their representatives in the OHS management process consists in consultations, participation in the decision-making process and co-responsibility for building a culture of health and safety in the workplace. We have been developing our OHS management system in line with these priorities, providing the right resources and measures necessary for their continuous improvement, and we regularly report on our progress in generally available publications.

The objectives of the policy are to:

• Create an organisational culture free of prejudice, stereotypes and discrimination, in which diversity and equal opportunities allow each person to be themselves and create their own paths of personal and professional success. We promote a culture of diversity, equality and inclusion.
• Emphasise strategic importance of the culture of diversity, supporting our corporate values: we act responsibly, we act together, we act with openness, and stemming from the principles of the Polpharma Group Code of Ethics.
• Create an open, friendly and inclusive environment. A place where every working person can develop and freely share ideas and comments, where they feel listened to and appreciated for the contribution they make to the operation and development of the company.

We are committed to:

• promoting respect towards diversity;
• promoting an organisational culture where every working person is valued for their contribution to the operation and development of the company, and where diversity is an added and desirable value;
• promoting the principles of equal treatment in employment and professional development by implementing practices of impartial evaluation of people working at Polpharma:

– regardless of inborn or acquired differences;

– regardless of organisational identity, i.e. departmental affiliation, period and form of employment, location, etc.;

• monitoring the sense of equal treatment and belonging among people working at Polpharma;
• a zero-tolerance policy against mobbing, which may manifest itself as intimidation, humiliation or harassment, and to preventing all forms of discrimination;
• improving the knowledge of those working for the company and communicating with stakeholders to build an organisational culture that is open to diversity.

In creating a workplace that is friendly and open to diversity, Polpharma expects people working in and cooperating with the company to conduct themselves in accordance with Polpharma’s values and to respect the following principles:

• Treat others with respect, accept differences, and be open to different points of view.
• Act together, include, appreciate and support each other, regardless of differences.
• Communicate based on kindness and a desire for mutual understanding.
• Be aware of how expressing extreme views, prejudices and stereotypes affect others.
• Respond to and report misconduct, whether you experience or witness it.
• Be aware of the consequences of activities violating the law, ethical principles or Polpharma’s Diversity Policy.