At the same time, we are aware that in order to minimise our adverse environmental impact in a comprehensive and lasting way and to take responsibility for our social impact, we must closely collaborate with the providers of goods and services – our suppliers. That is why a sustainable supply chain (SSC) has been an essential and integral part of our approach to responsible business for years.

We regularly introduce new solutions and standards for working with our suppliers, while improving own processes.

As part of our ESG Strategy 2022–2025, we have developed dedicated solutions centred around improving our supply chain. These include four priority areas:

• ESG supply chain risk management – We are aware of the impact that not only economic risks, but also social and environmental risks at various points along the value chain can have on our business. To prevent them from materialising, we conduct a periodic assessment of ESG risks and their business impact in our supply chain. In addition, as part of our due diligence process, suppliers are regularly reviewed and ranked, so we can effectively prioritise our activities.
• Verification of ESG expectations of suppliers – We take steps to ensure that our suppliers follow the standards we set. Every supplier who wants to be included in the Polpharma Group’s value chain must read the Polpharma Supplier Code of Conduct and sign an ethics clause (which is part of the general terms and conditions of the contract), thereby committing to abide by the provisions of the Code. In addition, we are working on a programme of ethical audits based on an internationally recognised methodology, which will apply to selected suppliers.
• Reducing environmental impact in the supply chain – We recognise the importance of the supply chain in our environmental impact. We measure and analyse our carbon footprint, including in Scope 3, to identify key purchasing categories with the greatest impact on it. We plan to create a programme to encourage suppliers to measure their carbon footprint and set environmental goals, providing them with the necessary tools and knowledge. For years, we have been actively supporting our suppliers in building awareness in the area of the biggest environmental challenges and priorities through dedicated training for them, including in the areas of the circular economy and carbon footprint.
• Sustainable Supply Chain Management – We implement solutions ensuring high and consistent supply chain and purchasing standards both inside and outside the organisation. Implemented in 2019, the Sustainable Supply Chain Policy is a key document that indicates the target state of our processes, guidelines and solutions used in building and conducting supplier relationships. The document assumes continuous improvement of the mechanisms put in place and their evaluation. Our high level of sustainable purchasing practices is confirmed by the ISO 20400 standard.

We also engage suppliers in joint activities, such as best practice competitions, the winners of which are rewarded with publication in our best practice guides. We are also happy to share Polpharma Group’s experience and best practices in sustainable development.

In line with our commitments in the Supplier Code of Conduct, we educate our suppliers about sustainability and our expectations towards meeting responsible supply chain criteria.

We provide periodic educational training in the form of webinars for suppliers on ESG topics, among others. Such training was held in November 2024 (for Polish suppliers) and March 2025 (for English-speaking suppliers). On top of that, 2 webinars (PL and ENG) on Polpharma’s Supplier Code of Conduct were held in March 2025, also addressing a range of ESG issues.

The most important document setting the framework for improving a sustainable supply chain is Polpharma’s Supplier Code of Conduct. The first version of the Code was created in 2015. The current version is effective as of 1 January 2025. The Code refers to internationally recognised documents and standards, such as, among others, the International Bill of Human Rights, the Paris Agreement and Agenda 2030, and European Union regulations such as the CSRD and the EU Taxonomy. It covers a range of ESG issues – environmental, social and governance – to ensure the highest standards of business operations at our partners. We are committed to ensuring that our suppliers around the world conduct their business in accordance with the principles set forth in the Code.

The principles described in the Polpharma Supplier Code of Conduct include:

So far, several hundred companies have already participated. We also involve suppliers in joint activities such as good practice competitions, the winners of which are rewarded with publication in our good practice guides. As well, we are keen to share Polpharma Group’s experience and good practices in sustainability.