Aspen Pharmacare Holdings Ltd

Aspen's direct and indirect business activities and stakeholder engagement processes are aligned to the Group's strategic objectives. This alignment is monitored by Group Executives through the Social & Ethics Committee and the Aspen Board. The Group Risk and Sustainability Department, as mandated by the Social & Ethics Committee and under the direction of Group Chief Operations Officer and Responsible Pharmacist, develops and promotes Aspen's environmental management principles and standards. The Group Ethics & Compliance Department monitors the alignment of business unit environmental management systems to the Group standards to ensure consistency across the operations. A draft Climate Change Position and Group Target was summited to Executive Management for review and endorsement. During 2022 formal structures for internal engagement with, and amongst, all manufacturing sites were developed in the form of Centres of Excellence that would drive Aspen's climate change ambitions. Centres of Excellence will be mandated to set and track measurable and ambitious targets for various sustainability topics including climate change. These targets will be aligned with and support the UN sustainable development goals. Facilities continue to engage with regional stakeholders and policy makers. Examples of these include our Moleneind (Netherlands) site that engages with the EU emissions trading system (EU ETS), our Dandenong (Australia) site that is member of the Australian Environment Business Network (AEBN) and ongoing consultation with external tax advisors regarding carbon tax in South Africa. A combined assurance audit plan is in place to monitor on-going alignment of environmental policies, procedures and systems related to legal, voluntary and corporate requirements. Identified risks are prioritised and addressed. Progress is monitored by the Group Risk and Sustainability Department, site management teams, Group Executives and the Social & Ethics Committee. In addition, all direct and indirect activities are communicated as per the ISO 14001 Environmental Management Systems Communication procedure for ISO certified facilities, ensuring consistency with the overall group environmental management principles and sustainability reporting structures. A culture of continual improvement exists across the Aspen Group.

The Group has made steady progress in delivering on our sustainability commitments during the year under review and has continued to develop a more deliberate sustainability strategy. This has included strengthening the governance over sustainability through the establishment of an Executive Sustainability Forum and implementing enhanced oversight by the Social & Ethics Committee. The Group remains firm in its commitment to uphold the principles of the United Nations Global Compact. I am proud of the role we are playing in contributing to the SDGs through our four sustainability pillars: Patients, Our People, Society and Environment. We are increasingly engaging with our investors, funders, customers and other stakeholders on ESG issues. We continue to work towards achieving improved transparency in our engagement and disclosures. This year has, for example, seen us mapping our disclosures against the JSE's Sustainability Disclosure Guidance and we have also improved our disclosures in line with the recommendations made by the TCFD. We have retained our position in the Top 30 of the FTSE/JSE Responsible Investment Index and we remain a constituent of the FTSE4Good Index. Aspen's 2021 Integrated Report was rated as "Excellent" and achieved 9th place in this year's EY Integrated Reporting Awards. [...] Demonstrating our commitment to sustainability, the Group has undertaken several steps to enhance Executive and Board oversight of the Group's sustainability strategy, related opportunities and risks and overall sustainability performance. In FY2022, the Group Senior Leadership Conference endorsed a high-level roadmap for the development of a Group-wide sustainability strategy, indicating support at the most senior Executive and Board levels for a more deliberate integration of sustainability commitments into the Group strategy, a process that is currently underway. We developed a Group Sustainability Management Framework and established an Executive Sustainability Forum (effective August 2022), chaired by the Group Chief Operations Officer, to oversee the sustainability strategy development and monitor its implementation. We also enhanced the reporting on sustainability-related issues to the Social & Ethics Committee and this will be further strengthened through regular reporting by the Executive Sustainability Forum on their activities going forward. [...] Aligned to our remuneration philosophy, we have incorporated sustainability (ESG) KPIs into our performance and incentive schemes. We have achieved this through the inclusion of sustainability-related KPIs (aligned with Group objectives) within the business unit scorecards, the inclusion of specific ESG-related priorities in the annual key performance areas or assessments ("KPAs") of Executive Directors as well as the inclusion of an ESG measure relating to our key sustainability focus "access to medicines" in the management long-term incentive scheme (refer to [page 113 for more information).]

Aligned to Aspen's purpose of improving the health and quality of life of patients, the establishment of a Global Access to Medicine Committee, the role of which is to provide the mechanism for the Group senior executive direction for the development, implementation and integration of the committee's strategy in the execution of the Group's broader strategy [...] Monitored whether management had allocated adequate resources to comply with social and ethics policies, codes of best practice and regulatory requirements [...] Monitored health and safety of Aspen products globally, as well as reports and trends in relation to responsibilities to patients [...] Recommended such measures and/or activities which, in the Committee's opinion, may serve to enhance our overall social and ethics objectives, such as an increased focus on diversity, equity and inclusion, and addressing gender-based violence [...] Reviewed the processes in consulting and communicating with internal and external stakeholders with respect to social and ethical issues [...] Monitored progress against B-BBEE targets, the employment equity and skills development plans for our South African businesses, and considered the external verification of our empowerment activities [...] Reviewed our performance in respect of ESG and sustainability considerations and assessed our performance in respect of social and ethical issues [...] Obtained internal assurance in respect of the Group's Ethics & Compliance programmes.

Aspen's direct and indirect business activities and stakeholder engagement processes are aligned to the Group's strategic objectives. This alignment is monitored by Group Executives through the Social & Ethics Committee and the Aspen Board. The Group Risk and Sustainability Department, as mandated by the Social & Ethics Committee and under the direction of Group Chief Operations Officer and Responsible Pharmacist, develops and promotes Aspen's environmental management principles and standards. The Group Ethics & Compliance Department monitors the alignment of business unit environmental management systems to the Group standards to ensure consistency across the operations. A draft Climate Change Position and Group Target was summited to Executive Management for review and endorsement. During 2022 formal structures for internal engagement with, and amongst, all manufacturing sites were developed in the form of Centres of Excellence that would drive Aspen's climate change ambitions. Centres of Excellence will be mandated to set and track measurable and ambitious targets for various sustainability topics including climate change. These targets will be aligned with and support the UN sustainable development goals. Facilities continue to engage with regional stakeholders and policy makers. Examples of these include our Moleneind (Netherlands) site that engages with the EU emissions trading system (EU ETS), our Dandenong (Australia) site that is member of the Australian Environment Business Network (AEBN) and ongoing consultation with external tax advisors regarding carbon tax in South Africa. A combined assurance audit plan is in place to monitor on-going alignment of environmental policies, procedures and systems related to legal, voluntary and corporate requirements. Identified risks are prioritised and addressed. Progress is monitored by the Group Risk and Sustainability Department, site management teams, Group Executives and the Social & Ethics Committee. In addition, all direct and indirect activities are communicated as per the ISO 14001 Environmental Management Systems Communication procedure for ISO certified facilities, ensuring consistency with the overall group environmental management principles and sustainability reporting structures. A culture of continual improvement exists across the Aspen Group.

Enhanced governance over sustainability Demonstrating our commitment to sustainability, the Group has undertaken several steps to enhance Executive and Board oversight of the Group's related opportunities and risks and overall sustainability performance. In FY2022, the Group Senior Leadership Conference endorsed a high-level roadmap for the development of a Group-wide Sustainability Strategy, indicating support at the most senior Executive and Board levels for a more deliberate integration of sustainability commitments into the Group strategy. The development of our sustainability strategy is progressing according to key milestones under the oversight of the Executive Sustainability Forum, chaired by the Group Chief Operations Officer. We continue to enhance our reporting on sustainability-related issues to the Social & Ethics Committee, which monitors the Group's sustainability and ESG performance across the four sustainability pillars. [...] Responsible advocacy and lobbying was refined to Responsible advocacy, recognising that lobbying is just one aspect falling under the Responsible advocacy topic; [...] The updated sustainability materiality matrix was debated by the Executive Sustainability Forum, approved by the Group Executive Committee and reviewed by the Social & Ethics Committee.

Enhanced governance over sustainability Demonstrating our commitment to sustainability, the Group has undertaken several steps to enhance Executive and Board oversight of the Group's related opportunities and risks and overall sustainability performance. In FY2022, the Group Senior Leadership Conference endorsed a high-level roadmap for the development of a Group-wide Sustainability Strategy, indicating support at the most senior Executive and Board levels for a more deliberate integration of sustainability commitments into the Group strategy. The development of our sustainability strategy is progressing according to key milestones under the oversight of the Executive Sustainability Forum, chaired by the Group Chief Operations Officer. We continue to enhance our reporting on sustainability-related issues to the Social & Ethics Committee, which monitors the Group's sustainability and ESG performance across the four sustainability pillars. [...] Sustainability materiality update This year, we reviewed the sustainability materiality outcomes of the prior year and made updates to reflect the rapidly changing external context and Aspen's strategic positioning. Key changes to our material sustainability topics included the inclusion of one new topic: "Animal welfare" and amendments to the scope of the following topics: "Responsible advocacy and lobbying" was refined to "Responsible advocacy", recognising that lobbying is just one aspect falling under the "Responsible advocacy" topic; "Data privacy and information security" was amended to "Data governance" to reflect the increased focus on ethics and governance associated with artificial intelligence and data in the healthcare industry more generally; and "Waste" was expanded to "Resource use and waste" to encapsulate the concepts of reduced resource use and circular economy within a waste lifecycle approach. The updated sustainability materiality matrix was debated by the Executive Sustainability Forum, approved by the Group Executive Committee and reviewed by the Social & Ethics Committee. Our intention is to further enhance this process by engaging more broadly with our internal and external stakeholders in future periods.

Underlining the importance of our commitment to contributing to the global goals of increasing access to high quality, affordable medicines and reducing patient inequality, we have established a senior executive-level Global Access to Medicines Committee. This Committee will drive our position on access to medicines, ensuring our efforts are embedded in the Group's strategic focus. [...] As such, we recently established a Global Access to Medicines Committee to provide the mechanism for Group senior executive direction in the development, implementation, and integration of our Access to Medicines Strategy. [...] The Social & Ethics Committee provides oversight of our Human Capital Strategy and performance, while the Remuneration & Nomination Committee oversees our rewards and performance strategies and succession planning for key roles. [...] The Social & Ethics Committee of the Board oversees and approves the Ethical Business Conduct programme, Safety, Health and Environmental Compliance Assurance programme, and other compliance programmes which are relevant to the legislative mandate of the Committee. The Committee also receives quarterly updates on any reported ethics breaches, including tip-offs received, and ongoing investigations in respect of these reports. [...] The Social & Ethics Committee provides oversight of consumer relationships as this relates to product quality and adverse drug reaction incidents reported globally. [...] Our Advocacy and Government Relations Policy sets the standards for ethical engagement with stakeholders (government authorities, scientific societies, trade associations, experts, patient organisations and non-governmental organisations) on matters of public policy that affect patients, the pharmaceutical industry, and our business, in the countries in which we operate. The Policy also addresses the subject of employing certain former government officials. It requires an assessment of, and where necessary, implementation of a cooling-off period to maintain transparency and avoid conflicts of interest. [...] Aligned to our SED Policy, we do not make charitable contributions or community investments to disguise a bribe, or to gain an improper business advantage. We ensure that when we make charitable contributions or community investments we conduct risk-based due diligence on the recipient and monitor the use of the funds to ensure these are used for the purposes agreed upon. [...] Internal communications on the Anti-bribery and Anti-corruption Policy highlight relevant information on corruption, and practical considerations to mitigate against the risks. The principles are communicated to third party suppliers and service providers via the Aspen Supplier Code of Conduct, which addresses the principles of ant-bribery and anti-corruption. The Code of Conduct is incorporated into the contract documentation when Aspen engages a third-party supplier or service provider (including agents and intermediaries). [...] Our Anti-bribery and Anti-corruption training, which is performed by identified relevant staff, covers in more detail the principles addressed in the Aspen Anti-bribery and Anti-corruption Policy, and the application of the principles in practice, including, for example, working in high-risk countries with high-risk third parties. [...] The Aspen Code of Conduct training, which is performed annually by all employees, covers key anti-bribery and anti-corruption principles. [...] The Social & Ethics Committee monitors progress against B-BBEE targets, the employment equity and skills development plans for our South African businesses, and considered the external verification of our empowerment activities.

Describe the process(es) your organization has in place to ensure that your engagement activities are consistent with your overall climate change strategy[…]Aspen's direct and indirect business activities and stakeholder engagement processes are aligned to the Group's strategic objectives. This alignment is monitored by Group Executives through the Social & Ethics Committee and the Aspen Board. The Group Risk and Sustainability Department, as mandated by the Social & Ethics Committee and under the direction of Group Chief Operations Officer and Responsible Pharmacist, develops and promotes Aspen's environmental management principles and standards. The Group Ethics & Compliance Department monitors the alignment of business unit environmental management systems to the Group standards to ensure consistency across the operations.

A draft Climate Change Position and Group Target was summited to Executive Management for review and endorsement. During 2022 formal structures for internal engagement with, and amongst, all manufacturing sites were developed in the form of Centres of Excellence that would drive Aspen's climate change ambitions. Centres of Excellence will be mandated to set and track measurable and ambitious targets for various sustainability topics including climate change. These targets will be aligned with and support the UN sustainable development goals. Facilities continue to engage with regional stakeholders and policy makers. Examples of these include our Moleneind (Netherlands) site that engages with the EU emissions trading system (EU ETS), our Dandenong (Australia) site that is member of the Australian Environment Business Network (AEBN) and ongoing consultation with external tax advisors regarding carbon tax in South Africa.

A combined assurance audit plan is in place to monitor on-going alignment of environmental policies, procedures and systems related to legal, voluntary and corporate requirements. Identified risks are prioritised and addressed. Progress is monitored by the Group Risk and Sustainability Department, site management teams, Group Executives and the Social & Ethics Committee. In addition, all direct and indirect activities are communicated as per the ISO 14001 Environmental Management Systems Communication procedure for ISO certified facilities, ensuring consistency with the overall group environmental management principles and sustainability reporting structures. A culture of continual improvement exists across the Aspen Group.

Does your organization have a public commitment or position statement to conduct your engagement activities in line with the goals of the Paris Agreement?[…]No, but we plan to have one in the next two years