PolyPeptide Group AG

At PolyPeptide, the Board of Directors is responsible for the overall direction of the Group and oversight of management, including the Group's integrated growth strategy, recognizing the importance of ESG. As such, the Board of Directors oversees the determination of the ESG topics that are material for PolyPeptide and approves the Annual Report, including this Corporate Responsibility Report. Oversight for sustainability matters is thematically assigned to the Remuneration and Nomination Committee, the Audit and Risk Committee and the Innovation and Technology Committee of the Board of Directors. [...] The responsibility and authority for carrying out operational activities of the Group are delegated to the Executive Committee. This includes the implementation of the Group's ESG activities as an integrated part of its strategy and business plans. By these means, the Executive Committee receives support from the PolyPeptide Management Committee and the ESG Steering Committee, where relevant global functions are represented. These functions have been assigned responsibility for material ESG topics, as set out in the table below, to make sure they are adequately reflected within the functional plans and, with the support of local management, in the day-to-day operations. [...] The oversight of Climate change mitigation at the Board level rests with the Audit and Risk Committee. Responsibilities for implementation are delegated to the Director Global EHS, who reports to the Global Director Operations. The Global Director EHS coordinates relevant climate-related matters with the Green Steering group and leads the EHS managers at the manufacturing sites, who are part of the local leadership teams, also reporting to the corresponding Site Director. [...] The oversight of Business ethics and compliance at the Board level is with the Audit and Risk Committee. Responsibilities for implementation are delegated to the General Counsel, who also holds the position of the Group's Governance, Risk, and Compliance Officer. The Group's IT organization is under the leadership of the Director Global IS/IT, who reports to the CFO. The Corporate Compliance Committee (CCC) is responsible for promoting corporate compliance, including the protection of data privacy, and identifying potential violations to ethical business conduct. The Group maintains a corporate compliance program to continuously prevent and identify infractions of laws, rules, policies, and guidelines. [...] While the Board of Directors retains the ultimate responsibility for risk management and for determining the appropriate level of risk that PolyPeptide is willing to accept, the PolyPeptide Management Committee (together with the Audit and Risk Committee) is responsible for ensuring that the operation of Enterprise Risk Management Framework is sound, including risk management of significant risks through the monitoring of specified actions. Finally, the Group's Head of Internal Audit reporting to the Audit and Risk Committee, plays an instrumental role in ensuring adequate Board oversight with the instillment of effective, compliant, and responsible business practices. The Head of Internal Audit implements an annual audit plan, presented to and approved by the Audit and Risk Committee, and reports findings with best practice recommendations to the Audit and Risk Committee.

At PolyPeptide, the Board of Directors is responsible for the overall direction of the Group and oversight of management, including the Group's growth strategy that recognizes the importance of ESG. Moreover, the Board of Directors oversees climate-related risks and opportunities as defined in the Climate Report. As such, the Board of Directors supervises the determination of the ESG topics that are material for PolyPeptide and approves the Annual Report, including this Corporate Responsibility Report. Oversight for sustainability matters is thematically assigned to the Remuneration and Nomination Committee, the Audit and Risk Committee, and the Innovation and Technology Committee of the Board of Directors. For details about the responsibilities and composition of these committees, refer to section 3.5.3 Working methods of the Committees of the Corporate Governance Report. [...] The responsibility and authority for carrying out operational activities of the Group are delegated to the Executive Committee. This includes the implementation of the Group's ESG activities as an integrated part of its strategy and business plans. The Executive Committee receives support from the PolyPeptide Management Committee and the ESG Steering Committee, where relevant global functions are represented. These functions have been assigned responsibility for material ESG topics, as set out in the table below, to make sure they are adequately reflected within the functional plans and, with the support of local management, in the day-to-day operations. [...] The oversight of Supply chain engagement at the Board level is with the Audit and Risk Committee. Responsibilities for implementation are delegated to the Director Global Procurement, who reports to the Director Global Operations. The Director Global Procurement works with the purchasing departments that are part of each manufacturing site's local management structure. [...] The oversight of Business ethics and compliance at the Board level is with the Audit and Risk Committee. Responsibilities for implementation are delegated to the General Counsel, who also holds the position of the Group's Governance, Risk, and Compliance Officer. The Group's IT organization is under the leadership of the Director Global IS/IT, who reports to the CFO. The cross-functional Corporate Compliance Committee (CCC) is responsible for promoting corporate compliance, including the protection of data privacy and information security, and identifying potential violations to ethical business conduct. The Group maintains a corporate compliance program to continuously prevent and identify infractions of laws, rules, policies, and guidelines. [...] The implementation of the Group's climate strategy is coordinated by the cross functional Green Steering Committee, which also is responsible for the implementation of the Group's Green Master Plan (see section Green Chemistry). This plan includes initiatives that impact both the optimized use of chemical substances and the Group's carbon footprint. The Director Global EHS, a member of the Green Steering Committee, develops and deploys the transition plan, oversees GHG emissions assessments, and updates progress toward science-based targets. He ensures clear reporting mechanisms for tracking and managing climate-related matters, to meet the Group's climate targets. The Director Global Operations and site directors execute the transition plan at manufacturing sites. The ESG Steering Committee ensures that progress on the transition plan implementation is disclosed and that all regulatory requirements are considered. Internally, progress is reported as follows: - Board of Directors (annually), - ITC (twice per year), - Green Steering Committee (quarterly), and - ESG steering committee (periodically).