Scope 1 Emissions
2022 Communication on Progress
Sanofi
Published date
July 13, 2022
No. of questions
62
Supplemental files
CEO Statement
Governance
Policies and Responsibilities
1. Does the Board / highest governance body or most senior executive of the company:
Optional commentSee especially the 2021 Declaration of Extra-Financial Performance (See Chapter 4 CSR Report 2021) : https://www.sanofi.com/dam/jcr:76e15718-3de4-42c9-a4e3-b4cf70a5eb87/Declaration-of-Extra-Financial-Performance.pdf2. Does the company have a publicly stated commitment regarding the following sustainability topics?
Optional commenthttps://www.codeofethics.sanofi/ See Chapter 4 CSR Report 2021 for more detailed commitments: https://www.sanofi.com/dam/jcr:76e15718-3de4-42c9-a4e3-b4cf70a5eb87/Declaration-of-Extra-Financial-Performance.pdf3. Does the company have in place a code of conduct regarding each of the following sustainability topics?
Optional commenthttps://www.codeofethics.sanofi/4. Has the company appointed an individual or group responsible for each of the following sustainability topics?
Optional commentAnti-Corruption: Responsibilities at board level. Environment: Since 2015, the Planet Mobilization roadmap sets ambitious targets that involves all the Company’s resources in defining objectives and engaging with external partners. This program is steered by a committee lead by the Executive Vice President of Industrial Affairs (a member of the Company's Executive Committee) and includes as core members: Sanofi’s Head of Environment, Global Head of HSE, Head of Corporate Social Responsibility, Chief Procurement Officer, the Director of R&D France, and senior representatives of the Company's various Business Units. Operational committees dedicated to each environmental theme (climate change, responsible water management, eco-design, biodiversity, waste management, pharmaceuticals in the environment) have been chartered to ensure the roadmap implementation and the achievement of Planet Mobilization ambitions.5. Does the company have a formal structure(s) (such as a cross-functional committee) to address each of the following sustainability topics?
Optional commentWe have an Industrial Affairs Board, Risk Committee and Compliance Committee, supervised by our Chief Executive Officer. Climate-related risks and emerging trends are subject to the same governance as the overall Sanofi risk management process. Our risk profile and emerging trends scan, and scenarios for a selection of emerging trends, are presented annually to the Executive Committee, the Audit Committee, and the Board of Directors. The Executive Committee monitors risk mitigation and obtains assurance that adequate resources are allocated to it, and decides what anticipatory action should be taken to seize opportunities and protect Sanofi from threats arising from emerging trends. See Chapter 4 CSR Report p. 68-69 : https://www.sanofi.com/dam/jcr:76e15718-3de4-42c9-a4e3-b4cf70a5eb87/Declaration-of-Extra-Financial-Performance.pdfPrevention
6. Does the company have a process or processes to assess risk?
Optional commentWe have rolled out a dedicated system (eVendor) to assess at-risk suppliers, which by end 2021 had covered 81 of the 91 countries where we carry on procurement. The procurement risk mapping exercise described below has been integrated into this new application, allowing for upfront evaluation of new suppliers on health and safety, environmental and human rights criteria. All new suppliers have to complete a self-assessment questionnaire so that we can be sure they meet our requirements. Further investigations (such as EcoVadis questionnaires, compliance audits, or internal inspections) may be carried out if risks are identified or our in-house experts advise us to do so. All 250 procurement categories were evaluated during 2018 and rated on a scale from 1 to 4 in terms of their inherent risk to health and safety, the environment, and human rights. Inherent risk is defined as the external, business-related risk (regardless of the country where that business is carried on) that suppliers in a given procurement category will endanger health and safety, violate the human rights of their workers, or cause harm to the environment. The risk rating reflects: • for health and safety: the number of people potentially affected, and the severity and irreversibility of the accidental or chronic harm caused; • for the environment: the extent and irreversibility of the negative consequences (in terms of pollution and consumption of natural resources) for the environment, communities and biodiversity (not necessarily limited to the site itself); and • for human rights: the characteristics of the labor force (level of qualification, headcount, extent of reliance on temporary labor), and the human rights sensitivity of the products used (supply chain). An overall composite rating was calculated for each procurement category, and around forty were classified as inherently high-risk in terms of environmental protection, health and safety, and human rights. Those categories were associated with waste management, demolition, depollution, major construction works, hazardous products, active ingredients, natural products, pharmaceutical subcontracting, clinical trials, transport and distribution, site operations, security services, travel and events, and recruitment agencies. This risk mapping was updated in 2021, enabling us to determine response typologies for each category identified as being at risk with reference to the vigilance plan (health and safety, environment and human rights). The response depends on the risk rating, the country, the characteristics of the service provided (such as on/offsite, the service-provider’s organizational structure, recurrence, etc.) and the volume of spend. Examples of potential risk management responses include audits (by our internal auditors, or via the PSCI or TfS industry-wide initiatives), risk assessments, prevention plans or targeted awareness campaigns. See Chapter 4 CSR Report p. 47: https://www.sanofi.com/dam/jcr:76e15718-3de4-42c9-a4e3-b4cf70a5eb87/Declaration-of-Extra-Financial-Performance.pdf6.1. During the assessment of risk, which business relationships are reviewed?
Optional commentWe have rolled out a dedicated system (eVendor) to assess at-risk suppliers, which by end 2021 had covered 81 of the 91 countries where we carry on procurement. The procurement risk mapping exercise described below has been integrated into this new application, allowing for upfront evaluation of new suppliers on health and safety, environmental and human rights criteria. All new suppliers have to complete a self-assessment questionnaire so that we can be sure they meet our requirements. Further investigations (such as EcoVadis questionnaires, compliance audits, or internal inspections) may be carried out if risks are identified or our in-house experts advise us to do so. All 250 procurement categories were evaluated during 2018 and rated on a scale from 1 to 4 in terms of their inherent risk to health and safety, the environment, and human rights. Inherent risk is defined as the external, business-related risk (regardless of the country where that business is carried on) that suppliers in a given procurement category will endanger health and safety, violate the human rights of their workers, or cause harm to the environment. The risk rating reflects: • for health and safety: the number of people potentially affected, and the severity and irreversibility of the accidental or chronic harm caused; • for the environment: the extent and irreversibility of the negative consequences (in terms of pollution and consumption of natural resources) for the environment, communities and biodiversity (not necessarily limited to the site itself); and • for human rights: the characteristics of the labor force (level of qualification, headcount, extent of reliance on temporary labor), and the human rights sensitivity of the products used (supply chain). An overall composite rating was calculated for each procurement category, and around forty were classified as inherently high-risk in terms of environmental protection, health and safety, and human rights. Those categories were associated with waste management, demolition, depollution, major construction works, hazardous products, active ingredients, natural products, pharmaceutical subcontracting, clinical trials, transport and distribution, site operations, security services, travel and events, and recruitment agencies. This risk mapping was updated in 2021, enabling us to determine response typologies for each category identified as being at risk with reference to the vigilance plan (health and safety, environment and human rights). The response depends on the risk rating, the country, the characteristics of the service provided (such as on/offsite, the service-provider’s organizational structure, recurrence, etc.) and the volume of spend. Examples of potential risk management responses include audits (by our internal auditors, or via the PSCI or TfS industry-wide initiatives), risk assessments, prevention plans or targeted awareness campaigns. See Chapter 4 CSR Report p. 68-69 : https://www.sanofi.com/dam/jcr:76e15718-3de4-42c9-a4e3-b4cf70a5eb87/Declaration-of-Extra-Financial-Performance.pdf7. Does the company have a due diligence process through which it identifies, prevents, mitigates, and accounts for actual and potential negative impacts on sustainability topics?
Optional commentWe have rolled out a dedicated system (eVendor) to assess at-risk suppliers, which by end 2021 had covered 81 of the 91 countries where we carry on procurement. The procurement risk mapping exercise described below has been integrated into this new application, allowing for upfront evaluation of new suppliers on health and safety, environmental and human rights criteria. All new suppliers have to complete a self-assessment questionnaire so that we can be sure they meet our requirements. Further investigations (such as EcoVadis questionnaires, compliance audits, or internal inspections) may be carried out if risks are identified or our in-house experts advise us to do so. All 250 procurement categories were evaluated during 2018 and rated on a scale from 1 to 4 in terms of their inherent risk to health and safety, the environment, and human rights. Inherent risk is defined as the external, business-related risk (regardless of the country where that business is carried on) that suppliers in a given procurement category will endanger health and safety, violate the human rights of their workers, or cause harm to the environment. The risk rating reflects: • for health and safety: the number of people potentially affected, and the severity and irreversibility of the accidental or chronic harm caused; • for the environment: the extent and irreversibility of the negative consequences (in terms of pollution and consumption of natural resources) for the environment, communities and biodiversity (not necessarily limited to the site itself); and • for human rights: the characteristics of the labor force (level of qualification, headcount, extent of reliance on temporary labor), and the human rights sensitivity of the products used (supply chain). An overall composite rating was calculated for each procurement category, and around forty were classified as inherently high-risk in terms of environmental protection, health and safety, and human rights. Those categories were associated with waste management, demolition, depollution, major construction works, hazardous products, active ingredients, natural products, pharmaceutical subcontracting, clinical trials, transport and distribution, site operations, security services, travel and events, and recruitment agencies. This risk mapping was updated in 2021, enabling us to determine response typologies for each category identified as being at risk with reference to the vigilance plan (health and safety, environment and human rights). The response depends on the risk rating, the country, the characteristics of the service provided (such as on/offsite, the service-provider’s organizational structure, recurrence, etc.) and the volume of spend. Examples of potential risk management responses include audits (by our internal auditors, or via the PSCI or TfS industry-wide initiatives), risk assessments, prevention plans or targeted awareness campaigns. See Chapter 4 CSR Report p. 68-69 : https://www.sanofi.com/dam/jcr:76e15718-3de4-42c9-a4e3-b4cf70a5eb87/Declaration-of-Extra-Financial-Performance.pdf7.1. During the due diligence process, which business relationships are reviewed?
Optional commentSee answer above. Suppliers identified as being in the highest risk categories have their CSR performance assessed by an external service-provider. The results of those assessments are fed back into the procurement risk management process, driving constant improvement among our supplier base. The process covers more than 200 suppliers a year, with the aim of covering 100% of our high-risk strategic suppliers by the end of 2022. We assessed 406 suppliers in 2021. Of those, 222 were undergoing a reassessment, and 62% of those had improved their rating after following an action plan. Despite COVID-19, we were able to continue our supplier evaluation program in compliance with lockdown restrictions by conducting remote virtual audits, retaining the services of accredited local firms, or retrieving shared audits from industry initiatives to which we belong (PSCI and TfS). We also aim to carry out audits of all our high-risk suppliers of active pharmaceutical ingredients (APIs) and all our contract manufacturing organizations (CMOs). See Chapter 4 CSR Report p. 68-69 : https://www.sanofi.com/dam/jcr:76e15718-3de4-42c9-a4e3-b4cf70a5eb87/Declaration-of-Extra-Financial-Performance.pdfConcerns and grievance mechanisms
8. Are there any processes through which members of the company’s workforce can raise concerns about the company’s conduct related to human rights, labour rights, environment, or anti-corruption?
Optional commentSee Chapter 4 CSR Report p. 44 Whistle Blowing : https://www.sanofi.com/dam/jcr:76e15718-3de4-42c9-a4e3-b4cf70a5eb87/Declaration-of-Extra-Financial-Performance.pdf8.1. Please provide additional detail regarding the process(es) the company has through which members of the company’s workforce can raise concerns about the company’s conduct.
Optional commentA secure hotline and dedicated web page are available 24/7. The hotline is accessed by a toll-free number and is available in 28 languages. In the United States, the helpline set up for Sanofi employees is guaranteed to be independent and to protect anonymity, in accordance with local regulations and practices. Any employee who encounters a problem or who believes in good faith that a breach has occurred or is about to occur of any law, regulation, industry code of conduct, Sanofi standard or policy, or of any principle contained in the Code of Ethics, can use this system to report it by whatever means he or she sees fit. Employees will not be disciplined or penalized as a result of using the whistle-blowing system provided they acted in good faith without malicious intent, even if the report turns out to be inaccurate or no further measures taken. Sanofi employees are encouraged to identify themselves when reporting an incident, as this helps the investigation process. However, if they prefer not to disclose their identity, they can report anonymously. The system is also open to third parties interacting with Sanofi. Each report, whether received through the whistle-blowing system or through any other channel, is investigated internally using a methodological protocol set out in our whistle-blowing policy. If an internal investigation confirms the allegations, corrective and/or disciplinary measures are taken. To ensure that such measures are determined consistently and uniformly, Sanofi has issued a policy formally documenting an overall framework for corrective and/or disciplinary actions. See Chapter 4 CSR Report p. 44 Whistle Blowing : https://www.sanofi.com/dam/jcr:76e15718-3de4-42c9-a4e3-b4cf70a5eb87/Declaration-of-Extra-Financial-Performance.pdf9. Does the company provide or enable access to effective remedy to right holders / stakeholders where it has caused or contributed to the adverse impact?
Optional commentSee our Vigilance Plan Factsheet: https://www.sanofi.com/dam/jcr:2a81a644-41cd-4ed4-82ed-a97f974f990c/VigilancePlanEN.pdfLessons
10. How does the company capture lessons regarding each of the following sustainability topics?
Optional commentSee CSR Chapter 4 Report 'Ethics and business integrity' section p. 42-44 : https://www.sanofi.com/dam/jcr:76e15718-3de4-42c9-a4e3-b4cf70a5eb87/Declaration-of-Extra-Financial-Performance.pdfExecutive Pay
11. Is executive pay linked to performance on one or more of the following sustainability topics?
Optional commentThe objectives applicable to the variable compensation for 2022 are 50% based on financial indicators (sales growth, business net income, free cash flow, BOI margin and growth of key new assets, each accounting for 10%), and 50% based on specific individual objectives. Those individual objectives, comprise: business transformation (15%); organization and people (7.5%); pipeline (12.5%); and CSR (15%). The cap for grant of LTIs to the CEO is set in the shareholders’ resolution. * See explanations on page 106 of Form 20-F 2021: https://www.sanofi.com/dam/jcr:a01e8793-2e68-402f-9090-8e665c4215ff/Form-20-F-2021.pdf The objectives can be found on p. 114. For the CSR objective, they are as follows: Reshape of CSR organization and governance: CSR organization and governance redefined: Head of CSR in place, country network in place, regular reporting to Executive Committee and Board in place Enhancement of Sanofi’s commitments in CSR: • Clear objectives set: 4 pillars / 13 priorities • 58% renewable energy (ahead of target) • Global Health unit officially launched and first core projects ongoing • Definition and launch of the new company ambition, purpose and branding in line with the Play to Win strategy • Reinforced Diversity & Inclusion policy (i.e. 14 weeks of parental leave for all employees) Reinforcement of the monitoring of compliance roadmap / objectives • Global Compliance Officer, Head of Ethics & Business Integrity hired • Digitization of Ethics & Business Integrity accelerated to strengthen the 360° Integrity and Ethics approachBoard Composition
12. Percentage of individuals within the company’s Board / highest governance body by:
Optional commenthttps://www.sanofi.com/en/about-us/governance/board-of-directors13. Do you produce sustainability reporting according to:
Optional commentWe also report on the SDGs. Annual publication of 20-F Report in alignment with United States Securities and Exchange Commission, Annual Integrated Report & Declaration of Extra-Financial Performance, incl. CSR Report (Ch. 4), Cross-referenced with GRI and SASB + the EU Taxonomy https://www.sanofi.com/en/investors/reports-and-publicationsData Assurance
14. Is the information disclosed in this questionnaire assured by a third-party?
Human Rights
Materiality / Saliency
1. Which of the following has the company identified as material human rights issues connected with its operations and/or value chain, whether based on their salience (i.e., the most severe potential negative impacts on people) or another basis?
Optional commentSee our Human Rights Factsheet 2022: https://www.sanofi.com/dam/jcr:00090113-601e-436d-a2aa-0e8fc129af90/Fundamental-Human-Rights-at-Work.pdf "With respect to Sanofi's activities, the following risks have been specifically identified as salient with respect to the fundamental rights of employees: for activities related to sales, R&D and support functions: psychosocial risks and risks of isolated practices affecting freedom of association and the principle of non-discrimination; and for manufacturing and distribution activities: risk of employment of migrant workers in situations that may amount to forced labor, risk of excessive working hours, risk of a wage lower than the decent wage, risk of hazardous work performed by children under 18 years of age and impossibility for Sanofi to respect its commitments regarding freedom of association or non-discrimination in countries at risk. The risk factors used to define human rights risks are related to the characteristics of the workforce. To assess the criticality of its risks, inherent risk factors were defined: level of qualification, working conditions, possible presence of vulnerable workers and countries of activity (laws insufficient or contrary to international standards, common practices of human rights violations, strong presence of vulnerable populations on the territory). The specific activities of employees (industrial, commercial populations, support functions, etc.) made it possible to define the probability of occurrence of each risk as well as its severity (seriousness of the potential risk and number of people potentially affected, risk of systemic or isolated violations). This methodology was developed in consultation with the Risk Department."Response
8. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the human rights principles, including any challenges faced and actions taken towards prevention and/or remediation.
In 2019, we refined our human rights risk mapping so as to identify those countries where we need to focus our internal audit efforts. We identified 18 at-risk countries based on the following criteria: level of country risk, number of employees, and presence of production or distribution activities. Those countries represent approximately one-third of the Sanofi workforce. Of those 18 countries, seven (representing more than a quarter of the Sanofi workforce) have already been subject to audit. In 2021, 17 countries (Algeria, Brazil, China, Colombia, Egypt, India, Indonesia, Mexico, Pakistan, Russia, Saudi Arabia, South Africa, Thailand, Tunisia, Turkey, Venezuela and Vietnam) responded to the internal control questionnaire. The main findings are summarized in Chapter 4, p. 62: https://www.sanofi.com/dam/jcr:76e15718-3de4-42c9-a4e3-b4cf70a5eb87/Declaration-of-Extra-Financial-Performance.pdfLabour
Commitment
1. Does the company have a policy commitment in relation to the following labour rights principles?
Optional commentSee our Code of Ethics: https://www.codeofethics.sanofi/EN/preserving-health-and-safety-and-protecting-people-and-the-environment.html See our Human Rights Factsheet 2022: https://www.sanofi.com/dam/jcr:00090113-601e-436d-a2aa-0e8fc129af90/Fundamental-Human-Rights-at-Work.pdf1.1. For each labour rights policy, is it:
Optional commentSee our Code of Ethics: https://www.codeofethics.sanofi/EN/preserving-health-and-safety-and-protecting-people-and-the-environment.html See our Human Rights Factsheet 2022: https://www.sanofi.com/dam/jcr:00090113-601e-436d-a2aa-0e8fc129af90/Fundamental-Human-Rights-at-Work.pdfPrevention
2. In the course of the reporting period, has the company engaged with affected stakeholders or their legitimate representatives in relation to the following labour rights issues?
Optional commentSanofi makes regular presentations to trade unions about the rollout and monitoring of the Vigilance Plan, via a working group mandated by the Group Works Council. Since the publication of the initial plan, regular meetings have been held to discuss issues such as risk mapping relating to human rights at work, sustainable procurement, whistle-blowing, and supplier assessments. One meeting was held in 2021, during which the issues presented included a follow-up on internal control points relating to policies on human rights at work; progress on sustainable procurement; and a status update on whistle-blowing reports under the duty of vigilance. CH. 4, p. 60: https://www.sanofi.com/dam/jcr:76e15718-3de4-42c9-a4e3-b4cf70a5eb87/Declaration-of-Extra-Financial-Performance.pdf3. What type of action has the company taken in the reporting period with the aim of preventing/mitigating the risks/impacts associated with this labour rights issue?
Optional commentOur Responsible Procurement approach requires our suppliers to adhere to Sanofi’s commitments on human rights, health and safety and the environment via our Suppliers Code of Conduct, with which all our suppliers must acquaint themselves. The Code of Conduct was updated in 2020 to include data protection, and a requirement for our suppliers to secure commitments from their own suppliers. In addition, we conduct anti-corruption due diligence before doing business with at-risk suppliers. This risk mapping was updated in 2021, enabling us to determine response typologies for each category identified as being at risk with reference to the vigilance plan (health and safety, environment and human rights). The response depends on the risk rating, the country, the characteristics of the service provided (such as on/offsite, the service-provider’s organizational structure, recurrence, etc.) and the volume of spend. Examples of potential risk management responses include audits (by our internal auditors, or via the PSCI or TfS industry-wide initiatives), risk assessments, prevention plans or targeted awareness campaigns. Suppliers identified as being in the highest risk categories have their CSR performance assessed by an external service-provider. The results of those assessments are fed back into the procurement risk management process, driving constant improvement among our supplier base. The process covers more than 200 suppliers a year, with the aim of covering 100% of our high-risk strategic suppliers by the end of 2022. We assessed 406 suppliers in 2021. Of those, 222 were undergoing a reassessment, and 62% of those had improved their rating after following an action plan. Despite COVID-19, we were able to continue our supplier evaluation program in compliance with lockdown restrictions by conducting remote virtual audits, retaining the services of accredited local firms, or retrieving shared audits from industry initiatives to which we belong (PSCI and TfS). We also aim to carry out audits of all our high-risk suppliers of active pharmaceutical ingredients (APIs) and all our contract manufacturing organizations (CMOs). Chapter 4 p. 68-69: https://www.sanofi.com/dam/jcr:76e15718-3de4-42c9-a4e3-b4cf70a5eb87/Declaration-of-Extra-Financial-Performance.pdf Sanofi makes regular presentations to trade unions about the rollout and monitoring of the Vigilance Plan, via a working group mandated by the Group Works Council. Since the publication of the initial plan, regular meetings have been held to discuss issues such as risk mapping relating to human rights at work, sustainable procurement, whistle-blowing, and supplier assessments. One meeting was held in 2021, during which the issues presented included a follow-up on internal control points relating to policies on human rights at work; progress on sustainable procurement; and a status update on whistle-blowing reports under the duty of vigilance. CH. 4, p. 60: https://www.sanofi.com/dam/jcr:76e15718-3de4-42c9-a4e3-b4cf70a5eb87/Declaration-of-Extra-Financial-Performance.pdf In 2019, we refined our human rights risk mapping so as to identify those countries where we need to focus our internal audit efforts. We identified 18 at-risk countries based on the following criteria: level of country risk, number of employees, and presence of production or distribution activities. Those countries represent approximately one-third of the Sanofi workforce. Of those 18 countries, seven (representing more than a quarter of the Sanofi workforce) have already been subject to audit. In 2021, 17 countries (Algeria, Brazil, China, Colombia, Egypt, India, Indonesia, Mexico, Pakistan, Russia, Saudi Arabia, South Africa, Thailand, Tunisia, Turkey, Venezuela and Vietnam) responded to the internal control questionnaire. The main findings are summarized in Chapter 4, p. 62: https://www.sanofi.com/dam/jcr:76e15718-3de4-42c9-a4e3-b4cf70a5eb87/Declaration-of-Extra-Financial-Performance.pdf4. Who receives training for the following labour rights issues?
Optional commentSee our Vigilance Plan Factsheet 2022: https://www.sanofi.com/dam/jcr:2a81a644-41cd-4ed4-82ed-a97f974f990c/VigilancePlanEN.pdf5. How does the company assess progress in preventing/mitigating the risks/impacts associated with the following labour rights issues?
Optional commentIn 2019, we refined our human rights risk mapping so as to identify those countries where we need to focus our internal audit efforts. We identified 18 at-risk countries based on the following criteria: level of country risk, number of employees, and presence of production or distribution activities. Those countries represent approximately one-third of the Sanofi workforce. Of those 18 countries, seven (representing more than a quarter of the Sanofi workforce) have already been subject to audit. In 2021, 17 countries (Algeria, Brazil, China, Colombia, Egypt, India, Indonesia, Mexico, Pakistan, Russia, Saudi Arabia, South Africa, Thailand, Tunisia, Turkey, Venezuela and Vietnam) responded to the internal control questionnaire. The main findings are summarized in Chapter 4, p. 62: https://www.sanofi.com/dam/jcr:76e15718-3de4-42c9-a4e3-b4cf70a5eb87/Declaration-of-Extra-Financial-Performance.pdfPerformance
6. What is the percentage of employees covered under collective bargaining agreements?
Optional commentApproximately 51% of Sanofi employees are covered by a collective agreement. In countries where no collective agreement exists, there are other approaches through a specific employee relations Center of Expertise, focus groups, Speak-Up events, or similar opportunities which are in place to ensure ongoing involvement of employees at all levels. See chapter 4, p. 17 https://www.sanofi.com/dam/jcr:76e15718-3de4-42c9-a4e3-b4cf70a5eb87/Declaration-of-Extra-Financial-Performance.pdf7. What is the percentage of employees in a trade union or other workers' organization?
8. In the course of the reporting period, what was the percentage of women in:
Optional commentSee: https://www.sanofi.com/en/about-us/governance/board-of-directors See our ESG Key Performance Indicator Factsheet for 2021: https://www.sanofi.com/en/our-responsibility/documents-center/reporting-frameworks-and-indicators9. What was the average ratio of the basic salary and remuneration of women to men (comparing jobs of equal value) during the reporting period?
Optional commentNOTE: Ratio is in favor of women. As of December 2021, Sanofi has an average global pay gap of 4.3% in favor of women, mainly driven by our gender distribution in job families and geographic footprint. See p. 21 of Chapter 4 URD: https://www.sanofi.com/dam/jcr:76e15718-3de4-42c9-a4e3-b4cf70a5eb87/Declaration-of-Extra-Financial-Performance.pdf10. In the course of the reporting period, how frequently were workers injured (injuries per hour worked)?
Optional commentOur ratio is per 1 million hours worked. Our total reportable injury frequency rate is 1.6. See our ESG Key Performance Indicator Factsheet for 2021: https://www.sanofi.com/en/our-responsibility/documents-center/reporting-frameworks-and-indicators11. In the course of the reporting period, what was the company’s incident rate?
Optional commentWe do not report on this indicator.Response and Reporting
12. In the course of the reporting period, has the company been involved in providing or enabling remedy where it has caused or contributed to the adverse impact associated with the following labour rights issues?
Optional commentSee our Chapter 4 for more detail: https://www.sanofi.com/dam/jcr:76e15718-3de4-42c9-a4e3-b4cf70a5eb87/Declaration-of-Extra-Financial-Performance.pdf See our ESG Key Performance Indicator Factsheet for 2021: https://www.sanofi.com/en/our-responsibility/documents-center/reporting-frameworks-and-indicators13. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the labour rights principles, including any challenges faced and actions taken towards prevention and/or remediation.
"In 2019, we refined our human rights risk mapping so as to identify those countries where we need to focus our internal audit efforts. We identified 18 at-risk countries based on the following criteria: level of country risk, number of employees, and presence of production or distribution activities. Those countries represent approximately one-third of the Sanofi workforce. Of those 18 countries, seven (representing more than a quarter of the Sanofi workforce) have already been subject to audit. In 2021, 17 countries (Algeria, Brazil, China, Colombia, Egypt, India, Indonesia, Mexico, Pakistan, Russia, Saudi Arabia, South Africa, Thailand, Tunisia, Turkey, Venezuela and Vietnam) responded to the internal control questionnaire. The main findings are summarized in Chapter 4, p. 62: https://www.sanofi.com/dam/jcr:76e15718-3de4-42c9-a4e3-b4cf70a5eb87/Declaration-of-Extra-Financial-Performance.pdf"Environment
Commitment
1. Does the company have a formal policy on the following environmental topics?
Optional commentFor more details, see our Factsheets on the Environment: https://www.sanofi.com/en/our-responsibility/documents-center/environment1.1. For each environmental policy, is it:
Optional commentWe have a global environmental policy addressing all topics above. For more details, see our Factsheets on the Environment: https://www.sanofi.com/en/our-responsibility/documents-center/environmentPrevention
2. In the course of the reporting period, has the company engaged with affected stakeholders or their legitimate representatives in relation to the following environmental issues?
Optional commentIn 2021, Sanofi spent €49 million on rehabilitating sites previously contaminated by soil or groundwater pollution (Ch. 4 p. 57 : https://www.sanofi.com/dam/jcr:76e15718-3de4-42c9-a4e3-b4cf70a5eb87/Declaration-of-Extra-Financial-Performance.pdf): As is the case for a number of companies in the pharmaceutical, chemical and agrochemical industries, soil and groundwater contamination has occurred at some of our sites in the past, and may still occur or be discovered at others. In Sanofi’s case, such sites are mainly located in the United States, Germany, France, Hungary, Italy and the United Kingdom. As part of a program of environmental surveys conducted over the last few years, detailed assessments of the risk of soil and groundwater contamination have been carried out at current and former Sanofi sites. In cooperation with national and local authorities, Sanofi regularly assesses the rehabilitation work required and carries out such work when appropriate. Long-term rehabilitation work is in progress or planned at Mount Pleasant and Portland in the United States; Frankfurt in Germany; Brindisi in Italy; Dagenham in the United Kingdom; Ujpest in Hungary; Beaucaire, Valernes, Limay, Neuville and Vitry in France; and at a number of sites divested to third parties and covered by contractual environmental guarantees granted by Sanofi. We may also have potential liability for investigation and cleanup at several other sites. We have established provisions for the sites already identified and to cover contractual guarantees for environmental liabilities for sites that have been divested. In France specifically, we have provided the financial guarantees for environmental protection required under French regulations. Potential environmental contingencies arising from certain business divestitures are described in Note D.22.d to our consolidated financial statements. In 2021, Sanofi spent €49 million on rehabilitating sites previously contaminated by soil or groundwater pollution. Due to changes in environmental regulations governing site remediation, our provisions for remediation obligations may not be adequate due to the multiple factors involved, such as the complexity of operational or previously operational sites, the nature of claims received, the rehabilitation techniques involved, the planned timetable for rehabilitation, and the outcome of discussions with national regulatory authorities or other potentially responsible parties, as in the case of multiparty sites. Given the long industrial history of some of our sites and the legacy obligations arising from the past involvement of Aventis in the chemical and agrochemical industries, it is impossible to quantify the future impact of these laws and regulations with precision. We have established, in accordance with our current knowledge and projections, provisions for cases already identified and to cover contractual guarantees for environmental liabilities relating to sites that have been divested. In accordance with Sanofi standards, a comprehensive review is carried out once a year on the legacy of environmental pollution. In light of data collected during that review, we adjusted our provisions to €649 million as of December 31, 2021, compared with €713 million in 2020. The terms of certain business divestitures, and the environmental obligations and retained environmental liabilities relating thereto, are described in Note D.22. to our consolidated financial statements, included at Item 18 of our 2021 Annual Report on Form 20-F. Ch. 4 p. 4: Regarding climate action, we have set the target to achieve carbon neutrality by 2030 for Scopes 1, 2 and 3 (SBTi – Science Based Target initiative – approved targets): (i) Reduce GHG emissions from Sanofi activities (Scopes 1 and 2) by 55% and from Scope 3 by 14% by 2030 (base year 2019); (ii) reach 100% renewable electricity across all global operations by 2030; and (iii) achieve a carbon neutral car fleet by 2030;3. What type of action has the company taken in the reporting period with the aim of preventing/mitigating the risks/impacts associated with these environmental topics?
Optional commentEnergize Supplier Program: Sanofi is a member of the Energize programme - a collaboration between Schneider Electric and 10 global pharmaceutical companies to engage hundreds of suppliers in climate action and decarbonisation of the pharmaceutical value chain. Employee training: A training in environmental topics has been launched in 2021. The objective of the training is to strengthen the environmental culture by providing basic knowledge in each of the environmental pillars covered by the Planet Mobilization program. Accessible to all, it is an opportunity given to all employees to take a closer look at today’s environmental challenges and to better understand Sanofi's environmental ambitions. See 2022 Factsheet on Employee Engagement on Environment in https://www.sanofi.com/en/our-responsibility/documents-center/environment HSE Audits: We aim to carry out audits of all our high-risk suppliers of active pharmaceutical ingredients (APIs) and all our contract manufacturing organizations (CMOs). All suppliers that do not meet our expectations will be subjective to a corrective action plan. Of the 386 suppliers reaudited (follow-up audits) annually in 2019, 2020 and 2021, 96 improved their performance and 240 have reached an acceptable level of performance. Ch. 4 P.69 : https://www.sanofi.com/dam/jcr:76e15718-3de4-42c9-a4e3-b4cf70a5eb87/Declaration-of-Extra-Financial-Performance.pdf4. How does the company assess progress in preventing/mitigating the risks/impacts associated with the following environmental topics?
Optional commentOceans and air pollution are less material topics for our industry. Sanofi has committed to monitoring and reducing its environmental impact through its strategy, “Planet Mobilization”, to limit the impact on the environment at every stage of the product lifecycle: from the raw materials we use in our medicines, devices and services to their potential end-of-life impact on human health and the environment. We have identified five key environmental topics associated with our operations: Greenhouse gas emissions Water resources Pharmaceuticals in the environment Waste Biodiversity Because we want to play our part in combating climate change, we pledged in 2021 to achieve carbon neutrality by 2030 across our entire value chain and net zero greenhouse gas emissions by 2050. That brought our target date forward by 20 years compared with our previous pledge, made in 2015 after COP21 and the Paris Agreement. We also extended our target to cover our entire value chain (Scopes 1, 2 and 3). To help us achieve this, we are aiming to reduce greenhouse gas emissions related to our operations (Scopes 1 & 2) by more than half by 2030 (a 55% cut versus 2019). We are also aiming to reduce indirect emissions related to our value chain (Scope 3) by 14%. Our objectives have been validated by the Science Based Target initiative (SBTi), giving them a scientific seal of approval as part of the planet-wide efforts needed to limit global warming to 1.5 °C. In order to achieve carbon neutrality in 2030, Sanofi focuses above all on reducing its emissions across its entire value chain (Scopes 1, 2 and 3). A carbon offsetting plan for residual emissions alone is being developed. The selection of compensation mechanisms will focus on effective projects that associate a positive social impact on communities with standards of “best in class” international certifications recognized by financial regulators. And we are going further: in 2020, we signed up to the RE100 initiative, reinforcing our ambition to use 100% renewably-sourced electricity across the entire Sanofi scope by 2030. We have also pledged to optimize our vehicle fleet (subject to availability of suitable models) in the regions where we operate, so as to reduce greenhouse gas emissions from our fleet. Our aim is that by 2030, our vehicle fleet should have a neutral carbon footprint. We are fully aware of the environmental and public health issues around the use of water in our industrial operations. That is why we perform regular risk assessments at all of our industrial sites aimed at reducing their water footprint. Sites identified as priority are required to implement water management plans by 2025. Those plans will reflect the specific issues at each site, and will help us use water effectively, sustainably and responsibly. A program of this type will be rolled out to all our industrial sites by 2030. This change in approach will have an overall positive impact on water withdrawals, leading to a 15% reduction by 2030 (against a 2019 baseline). Similarly, by 2025 all our production sites will have implemented a plan to manage pharmaceutical residues in the environment so as to reduce their potential impact on ecosystems. Reducing our environmental footprint also involves local biodiversity management. So those of our sites that are located close to sensitive natural spaces will have to work with local stakeholders to develop a biodiversity protection program by 2025. By 2030, all of our sites will have dedicated initiatives in place to support biodiversity. Finally, we are committed to continuing our efforts in terms of waste management. Our objective is that by 2025, over 90% of our waste will be recycled, reused or recovered via waste-to-energy), and we will no longer use landfill. Ch. 4 p. 45 : https://www.sanofi.com/dam/jcr:76e15718-3de4-42c9-a4e3-b4cf70a5eb87/Declaration-of-Extra-Financial-Performance.pdf4.1. For each environmental topic in which the company sets timebound goals / targets, what kind of targets has the company set?
Optional commentCh. 4 p. 45 : https://www.sanofi.com/dam/jcr:76e15718-3de4-42c9-a4e3-b4cf70a5eb87/Declaration-of-Extra-Financial-Performance.pdf4.2. For each environmental topic in which the company sets timebound goals / targets, how is progress against target / goal tracked?
Optional commentAll indicators are published as part of our Integrated Report, annual Declaration of Extra-Financial Performance and available via our Factsheets (Website, Document Center): https://www.sanofi.com/en/our-responsibility/documents-center/environment5. In the course of the reporting period, has the company been involved in providing or enabling remedy for any actual impacts associated with the following environmental issue(s)?
Optional comment"In 2021, Sanofi spent €49 million on rehabilitating sites previously contaminated by soil or groundwater pollution (Ch. 4 p. 57 : https://www.sanofi.com/dam/jcr:76e15718-3de4-42c9-a4e3-b4cf70a5eb87/Declaration-of-Extra-Financial-Performance.pdf): As is the case for a number of companies in the pharmaceutical, chemical and agrochemical industries, soil and groundwater contamination has occurred at some of our sites in the past, and may still occur or be discovered at others. In Sanofi’s case, such sites are mainly located in the United States, Germany, France, Hungary, Italy and the United Kingdom. As part of a program of environmental surveys conducted over the last few years, detailed assessments of the risk of soil and groundwater contamination have been carried out at current and former Sanofi sites. In cooperation with national and local authorities, Sanofi regularly assesses the rehabilitation work required and carries out such work when appropriate. Long-term rehabilitation work is in progress or planned at Mount Pleasant and Portland in the United States; Frankfurt in Germany; Brindisi in Italy; Dagenham in the United Kingdom; Ujpest in Hungary; Beaucaire, Valernes, Limay, Neuville and Vitry in France; and at a number of sites divested to third parties and covered by contractual environmental guarantees granted by Sanofi. We may also have potential liability for investigation and cleanup at several other sites. We have established provisions for the sites already identified and to cover contractual guarantees for environmental liabilities for sites that have been divested. In France specifically, we have provided the financial guarantees for environmental protection required under French regulations. Potential environmental contingencies arising from certain business divestitures are described in Note D.22.d to our consolidated financial statements. In 2021, Sanofi spent €49 million on rehabilitating sites previously contaminated by soil or groundwater pollution. Due to changes in environmental regulations governing site remediation, our provisions for remediation obligations may not be adequate due to the multiple factors involved, such as the complexity of operational or previously operational sites, the nature of claims received, the rehabilitation techniques involved, the planned timetable for rehabilitation, and the outcome of discussions with national regulatory authorities or other potentially responsible parties, as in the case of multiparty sites. Given the long industrial history of some of our sites and the legacy obligations arising from the past involvement of Aventis in the chemical and agrochemical industries, it is impossible to quantify the future impact of these laws and regulations with precision. We have established, in accordance with our current knowledge and projections, provisions for cases already identified and to cover contractual guarantees for environmental liabilities relating to sites that have been divested. In accordance with Sanofi standards, a comprehensive review is carried out once a year on the legacy of environmental pollution. In light of data collected during that review, we adjusted our provisions to €649 million as of December 31, 2021, compared with €713 million in 2020. The terms of certain business divestitures, and the environmental obligations and retained environmental liabilities relating thereto, are described in Note D.22. to our consolidated financial statements, included at Item 18 of our 2021 Annual Report on Form 20-F."Climate Action
6. What were the company’s gross global greenhouse gas emissions for the reporting period?
Scope 2 Emissions
Scope 3 Emissions
Optional commentPartial reporting for Scope 3 (cannot select here) See Ch. 4 p. 48-49 : https://www.sanofi.com/dam/jcr:76e15718-3de4-42c9-a4e3-b4cf70a5eb87/Declaration-of-Extra-Financial-Performance.pdf7. What percentage of the company's revenue was invested in R&D of low-carbon products/services during this reporting period?
8. Has the organization acted to support climate change adaptation and resilience?
Optional commentSee our Factsheet on the Vigilance Plan: https://www.sanofi.com/dam/jcr:2a81a644-41cd-4ed4-82ed-a97f974f990c/VigilancePlanEN.pdf See our Factsheet on Carbon Footprint: https://www.sanofi.com/dam/jcr:6dc91a23-b57a-447a-a80f-5ed2c44bf6e0/CarbonfootprintScopes123.pdf See our Factsheet on Employee Engagement on Environment: https://www.sanofi.com/dam/jcr:f961d86a-e70b-4d4d-9a5c-c204d2d54791/Employee-Engagement-on-Environment.pdfEnergy / Resource Use
9. Please report the company's renewable energy consumption as a percentage of total energy consumption in the reporting period.
Optional commentSee Q1 2022 Results presentation slide 50 : https://www.sanofi.com/dam/jcr:43abc534-d6e6-4bb3-ba55-602f1c6c2608/2022_04_28_Sanofi_Q1_2022_Results_Presentation_v2.pdfTechnology
10. What percent of the company's revenue came from environmentally friendly products / services during this reporting period?
Sector-specific Questions
11. Which sector(s) does the company operate in? If diversified, choose top 3 by revenue.
Sector-specific: Water
12. Please provide details regarding the company's water withdrawal and consumption (own operations) during the reporting period.
Water withdrawal (volume of water in megaliters):
Water consumption (volume of water in megaliters):
Optional commentSee p. 52 of the Chapter 4 URD: https://www.sanofi.com/dam/jcr:76e15718-3de4-42c9-a4e3-b4cf70a5eb87/Declaration-of-Extra-Financial-Performance.pdf13. Please provide details about the company’s water intensity of products in regions with high or extremely high water stress.
Sector-specific: Waste
18. Please report the company's total weight of waste generated in metric tonnes during the reporting period.
Optional commentSee Chapter 4 p. 53 https://www.sanofi.com/dam/jcr:76e15718-3de4-42c9-a4e3-b4cf70a5eb87/Declaration-of-Extra-Financial-Performance.pdf19. Please report the percentage of the company's waste that was hazardous waste (i.e., hazardous waste ratio) during the reporting period.
Optional comment116594 tonnes - See Chapter 4 p. 53 https://www.sanofi.com/dam/jcr:76e15718-3de4-42c9-a4e3-b4cf70a5eb87/Declaration-of-Extra-Financial-Performance.pdf20. Please report the company's estimated metric tonnes of single-use plastic consumed wherever material along the value chain during the reporting period.
Optional commentWe have the objective to improve the environmental profile of our products: (i) eco-design approach for all new products by 2025; (ii) assess impacts of our topselling medicines on ecosystems by 2025; and (iii) develop and operate a global program by 2030 to promote responsible use and proper disposal of unused medicines, medical devices, and packaging. In particular, we will end the use of plastic in blister packs for all our vaccines by 2027. This is a truly complex industrial endeavor that will address the problem of plastic waste in the environment. In Q4 2021; 29% of our vaccines were produced blister-free. See Q1 2022 Results, slide 50: https://www.sanofi.com/dam/jcr:43abc534-d6e6-4bb3-ba55-602f1c6c2608/2022_04_28_Sanofi_Q1_2022_Results_Presentation_v2.pdfOverall Environment
21. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the environment principles, including any challenges faced and actions taken towards prevention and/or remediation.
Please see our Chapter 4 2021: https://www.sanofi.com/dam/jcr:76e15718-3de4-42c9-a4e3-b4cf70a5eb87/Declaration-of-Extra-Financial-Performance.pdfAnti-corruption
Commitment
1. Does the company have an anti-corruption compliance programme?
Optional commentSee Ch. 4 p. 42-44: https://www.sanofi.com/dam/jcr:76e15718-3de4-42c9-a4e3-b4cf70a5eb87/Declaration-of-Extra-Financial-Performance.pdf2. Does your company have policies and recommendations for employees on how to act in case of doubt and/or in situations that may represent a conflict of interest, e.g. with regard to gifts and hospitality, donations, sponsorship, or interactions with public officials?
Optional commentSee Ch. 4 p. 42-44: https://www.sanofi.com/dam/jcr:76e15718-3de4-42c9-a4e3-b4cf70a5eb87/Declaration-of-Extra-Financial-Performance.pdfPrevention
3. Who receives training on anti-corruption and integrity?
Optional comment"We have built an E&BI training program to raise employee awareness and deliver continuing education. Every year, Sanofi employees must complete compulsory ethics and business integrity training. Tools include eLearning modules and short videos based on real-life situations that could expose employees to various types of risk including corruption, conflicts of interest, fraud, and confidentiality breaches. In addition, an online library of training modules, some of them available in 19 languages, can be accessed by employees who want to self-train. All E&BI policies are backed up by specific training tools, including frequently asked questions. Since 2019, failure to complete certain compulsory training modules can have an adverse impact on an employee’s annual evaluation. See Ch. 4 p. 43: https://www.sanofi.com/dam/jcr:76e15718-3de4-42c9-a4e3-b4cf70a5eb87/Declaration-of-Extra-Financial-Performance.pdf" Contractors, prior to joining Sanofi, are being trained by their employer on its own compliance program as part of the contractual obligations of the contractors’ employer. They receive a copy of the Sanofi Code of Ethics and are being made aware of the existence of the Sanofi 24/7 whistleblowing helpline (in local language). In addition, the manager receiving a contractor on his/her team ensures proper training on all operational procedures the contractor needs to master to execute their tasks in compliance with Sanofi’s standards and policies. See our EBI Factsheet: https://www.sanofi.com/dam/jcr:de85df12-3044-4d3d-97f9-03843ec9faf6/Ethics-and-Business-Integrity.pdf3.1. How often is such training provided?
Optional comment"We have built an E&BI training program to raise employee awareness and deliver continuing education. Every year, Sanofi employees must complete compulsory ethics and business integrity training. Tools include eLearning modules and short videos based on real-life situations that could expose employees to various types of risk including corruption, conflicts of interest, fraud, and confidentiality breaches. In addition, an online library of training modules, some of them available in 19 languages, can be accessed by employees who want to self-train. All E&BI policies are backed up by specific training tools, including frequently asked questions. Since 2019, failure to complete certain compulsory training modules can have an adverse impact on an employee’s annual evaluation. See Ch. 4 p. 43: https://www.sanofi.com/dam/jcr:76e15718-3de4-42c9-a4e3-b4cf70a5eb87/Declaration-of-Extra-Financial-Performance.pdf" Contractors, prior to joining Sanofi, are being trained by their employer on its own compliance program as part of the contractual obligations of the contractors’ employer. They receive a copy of the Sanofi Code of Ethics and are being made aware of the existence of the Sanofi 24/7 whistleblowing helpline (in local language). In addition, the manager receiving a contractor on his/her team ensures proper training on all operational procedures the contractor needs to master to execute their tasks in compliance with Sanofi’s standards and policies. See our EBI Factsheet: https://www.sanofi.com/dam/jcr:de85df12-3044-4d3d-97f9-03843ec9faf6/Ethics-and-Business-Integrity.pdf4. Does the company monitor its anti-corruption compliance programme?
Optional commentSee Ch. 4 p. 42-44: https://www.sanofi.com/dam/jcr:76e15718-3de4-42c9-a4e3-b4cf70a5eb87/Declaration-of-Extra-Financial-Performance.pdf See our Internal Control Factsheet 2022: https://www.sanofi.com/dam/jcr:97751d2e-def8-4da4-b8af-4f3814987836/Internal-Control-and-Processes.pdfResponse and Reporting
5. Please report the company's total number and nature of incidents of corruption during the reporting year.
Optional commentNo corruption incidents in 2021 See Report 20-F 2021 https://www.sanofi.com/dam/jcr:a01e8793-2e68-402f-9090-8e665c4215ff/Form-20-F-2021.pdf6. Within the reporting period, what measures has the company taken to address suspected incidents of corruption independently or in response to a dispute or investigation by a government regulator?
Optional commentSee Ch. 4 p. 42-44: https://www.sanofi.com/dam/jcr:76e15718-3de4-42c9-a4e3-b4cf70a5eb87/Declaration-of-Extra-Financial-Performance.pdf7. Does your company engage in Collective Action against corruption?
Optional commentTo be disclosed next year8. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the anti-corruption principle, including any challenges faced and actions taken towards prevention and/or remediation.
Please see our Anti-Bribery Policy: https://www.sanofi.com/dam/jcr:74bc866b-f04b-4bb0-a735-99a114759bd7/Anti_bribery_policy_Novembre_2017.pdf Please see our Business Ethics & Integrity Factsheet, p. 7 regarding corruption and our actions: https://www.sanofi.com/dam/jcr:de85df12-3044-4d3d-97f9-03843ec9faf6/Ethics-and-Business-Integrity.pdf