At the same time, we are aware that comprehensive and lasting reduction of our negative impact on the environment, as well as taking responsibility for the influence in the social dimension, is only possible in close cooperation with those from whom we buy products and services – our suppliers. For this reason, a sustainable supply chain (SSC) has for years been an essential and integral part of our approach to responsible business operations.

We are gradually introducing new solutions and standards of working with our suppliers, while improving our own processes at the same time.

As part of our ESG Strategy 2022-2025, we have developed dedicated solutions focused around improving our supply chain, which cover four priority areas:

• ESG risk management in the supply chain – We are aware of the impact that not only economic risks, but also social and environmental risks can have on our operations at various points along the value chain. To prevent them from materialising, we carry out a cyclical 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 classified enabling us to effectively prioritise our actions.
• Verification of ESG expectations of suppliers – We take measures to ensure that our suppliers act in accordance with the standards we set. Every supplier who wishes to be included in the Polpharma Group’s value chain must familiarise themselves with 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 comply with 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 footprint in the supply chain – We recognise the importance of the supply chain in our environmental impact. We measure and analyse our carbon footprint, including Scope 3 to identify the key purchasing categories with the highest contribution to it. Our plan is to create a programme to encourage suppliers to measure their carbon footprint and set environmental targets, providing them with the necessary tools and knowledge. Over the years, we have actively supported our suppliers in building awareness of major environmental challenges and priorities through dedicated training sessions, including in the area of the circular economy and carbon footprint.
• Sustainable Supply Chain Management – We implement solutions to ensure high and unified standards related to supply chain and purchasing 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 maintaining supplier relationships. The document implies continuous improvement of the mechanisms put in place and their evaluation. The high level of our sustainable purchasing practices is confirmed by the ISO 20400 standard.

Our key guiding document for building and improving sustainable supply chain is the Polpharma Supplier Code of Conduct. The first version of the Code was drafted in 2015, the current version effective January 1, 2025. The Code refers to internationally recognised documents and standards such as the International Bill of Human Rights, the Paris Agreement and Agenda 2030, as well as European Union regulations such as the CSRD or the EU Taxonomy. It covers a range of ESG issues – environmental, social and corporate 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 out 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.