15.04.2019

To our stakeholders:

I am pleased to confirm that Oriola reaffirms its support of the Ten Principles of the United Nations Global Compact in the areas of Human Rights, Labour, Environment and Anti-Corruption.

In this annual Communication on Progress, we describe our actions to continually improve the integration of the Global Compact and its principles into our business strategy, culture and daily operations. We also commit to share this information with our stakeholders using our primary channels of communication.

Sincerely yours,


Robert Andersson

CEO

Compliance with laws, regulations and Oriola's Code of Conduct is a must for us to conduct our business in a successful and sustainable manner. We also require our business partners to show their commitment to the same principles concerning human rights, among others, by committing to Oriola's Business Partner Code of Conduct.

We are committed to treat all our employees fairly and with respect. We promote freedom from discrimination based on race, ethnic or national origin, color, gender, family status, sexual orientation, creed, disability, age or political beliefs, or other characteristics protected by law. We foster equal opportunity, and our employees are recruited and treated on the basis of their skills, abilities and merits. We do not accept any form of abuse, discrimination, harassment or bullying.

We publish our actions and targets on Sustainability as part of our annual report. We have a Whistleblower channel for reporting actions that are felt to be in violation of the Code of Conduct, including human rights aspects. During 2018, we trained more than 2,000 employees with our Code of Conduct training. Code of Conduct training is part of induction process for all our employees.

In 2018, we received 15 cases via Whistleblower service and each case was carefully investigated. No cases were received related to human rights area.

Oriola is an equal and fair workplace that supports diversity. Oriola Code of Conduct defines ethical norms and business practices that each employee must observe in their work. The practices that our employees follow are also guided by Oriola's values: we are open, we take initiative, we take responsibility and we work together.

In our Code of Conduct, we promote non-discrimination and fair employment. Oriola does not accept any form of abuse, discrimination, harassment or bullying. We respect individual privacy and the confidentiality of private information. We respect our employees’ freedom of association. We also require our business partners to show their commitment to the same principles concerning labour, among others, by committing to Oriola's Business Partner Code of Conduct.

Oriola endeavours to create hazard-free workplaces for its employees working in various locations by applying high standards of occupational health and safety.

Oriola collaborates closely with occupational healthcare service providers and its employment pension companies to improve occupational wellbeing. Oriola uses an early support model to increase employees’ wellbeing at work and prevent sickness absences at all career stages.

During 2018, we trained more than 2,000 employees with our Code of Conduct training. In the future, the Code of Conduct training is part of induction process for all employees.

Agreements of employment are made by mutual agreement between the employee and the employer and are strictly regulated by national law and collective agreements.

In 2019, Oriola shared the fourth place in the FINDIX report that assessed diversity of company management and board of directors among Finnish companies.

People KPIs 2018:
Gender Diversity, All Employees, Female 78 % Male 22 %
Gender Diversity, Group Management Team, Female 50 % Male 50 %
Gender Diversity, Board of Directors, Female 57 % Male 43%
Employees by age, under 30 years 31 %
Employees by age, 30-49 years 45 %
Employees by age, 50 years and over 24 %
Employee Turnover, 15 %
Injury Rate (LTA 1) 1,2
Temporary Worker Ratio 31 %

As an important actor in the pharmaceutical value chain, Oriola's responsibility is to minimise its impacts on the environment. Oriola Environmental Policy outlines the commitment to reduce the environmental impacts of our operations. In addition, our Code of Conduct outlines our commitment to minimising environmental impacts.

The most significant impacts on the environment caused by Oriola's business are associated with facility maintenance, transportation of pharmaceuticals, and packaging waste. Oriola's operations in Sweden (Oriola AB and Svensk Dos) have ISO 14 001:2015 (Environment Management System) certificates. The best practices for monitoring and measuring environmental impacts are being harmonised between countries to identify where improvements are needed.

We also require our business partners to show their commitment to the same principles concerning environment, among others, by committing to Oriola's Business Partner Code of Conduct.

We have taken various actions to improve energy efficiency. The energy efficiency projects of our large warehouses and offices in Mölnlycke in Sweden and Mankkaa in Finland have created major annual savings in energy consumption, emissions and costs. In 2018, around 90% (85% previous year) of the electricity used by Oriola came from renewable sources.

Our long collaboration with transportation companies allows us to ensure a high rate of capacity usage and optimised route planning. We continue our work with our transportation partners to find options to reduce CO2 emissions.

More than a half of the waste generated by Oriola operations is recyclable cardboard and paperboard accumulated when products are repackaged. Each year, Oriola collects and sends for proper disposing hundreds of thousands of kilograms of pharmaceutical waste, which is mainly coming from the collection points at our Kronans Apotek pharmacies at Sweden. We will continue our efforts to increase our recycling rate.

In June 2018, Oriola Group Environmental policy was approved by the Board of Directors and the Group Management Team.

Environment KPIs 2018:
Electricity consumption 23 259 MWh
District heating consumption 6 244 MWh
Waste by disposal method:
Recycling 1 090 tonnes
Energy recovery 538 tonnes
Pharmaceutical waste for energy recovery 626 tonnes

At Oriola, we consistently comply with all applicable laws and regulations in all our activities.

In our Code of Conduct, we state the following: Oriola Group employees must not pay, offer to pay or accept bribes or kickbacks to or from the government, public officials, candidates, business partners or other third parties in order to obtain or retain business. Unauthorized donations to third parties are prohibited. Oriola Group employees are not allowed to accept or give gifts or entertainment from or to a stakeholder, with the exception of gifts or entertainment of a minor value that can be regarded as reasonable hospitality. Gifts or entertainment may further be given or received on an occasional basis and should never create a conflict of interest between an Oriola Group employee and a stakeholder.

We also require our business partners to show their commitment to the same principles concerning anti-corruption, among others, by committing to Oriola's Business Partner Code of Conduct.

We have a Whistleblower channel for reporting actions that are felt to be in violation of the Code of Conduct, including anti-corruption aspects.

In 2018, we received 15 cases via Whistleblower service and each case was carefully investigated. No cases were received related to anti-corruption / bribery area.