Sustainability in the Healthcare Continuum®

Commitment to Safety and Sustainability

Lonza is dedicated to providing the highest-quality products and services to our customers while minimizing our impact on the environment, striving for energy and resources efficiency and helping to improve the quality of life.

Our Commitment
Compliance and Integrity

We ensure that regulatory compliance, integrity and ethical conduct are the foundations in every place we operate.

Vision ZERO

We continually improve our systems and aspire to ZERO incidents, injuries or emissions.

Our People

We develop our employees by helping them grow. We provide safe workplaces, care for employees’ well-being and foster their involvement and participation.

Our Environment

We improve our environmental footprint by continually reducing energy, water and material demand per unit.

Value for Society

We create value for society by innovating science-based solutions along the Healthcare Continuum® to develop the medicines and consumer products of tomorrow. We engage in the communities where we operate.

As part of this commitment, Lonza fosters transparency and reporting in line with the Global Reporting Initiative (GRI) Standards, which represent the industry practice for reporting on economic, environmental and social indicators. The Lonza Sustainability Report 2018 focuses on the topics most relevant to Lonza’s business, as identified in the 2018 materiality assessment.

In 2018, a Sustainability Council was established by Lonza’s Executive Committee. The cross-functional Council is headed by the Lonza Group General Counsel and includes members from Legal, Environment, Health & Safety, Human Resources, Investor Relations and Corporate Communications and it directly interacts with the Executive Committee and the Board of Directors. The ultimate responsibility for all sustainability-related matters lies with the Chairperson of the Board.

Material Topics and Sustainable Development Goals

In 2018 Lonza performed a materiality assessment with the involvement of more than 100 stakeholders to prioritize the themes, initiatives and focus areas that best support sustainable development. A total of 16 topics were identified as the most relevant for Lonza globally, reflecting the sustainability benefits and impacts of Lonza’s operations, products and services along the entire value chain. The topics are depicted in the graphic below, following the report’s structure.

Material Topics for Lonza
Economic

Economic Performance
Anti-Corruption
Product Quality and Reliability
Customer Satisfaction

Environmental

Energy Conservation and Efficiency
GHG Management
Waste and Recycling
Environmental Compliance
Innovation

Social

Occupational Health and Safety
Non-Discrimination
Protection of Human Rights
Customer Health and Safety
Socioeconomic Compliance
Talent Management
Employee Engagement

In addition to the materiality topics, Lonza also recognizes the importance and relevance of the UN Sustainable Development Goals (SDGs). The goals contain a broad range of sustainable development themes, including alleviating poverty and hunger, improving health and education, reducing inequalities, promoting responsible consumption, combatting climate change and protecting natural resources. These goals interconnect; and in order to leave no one behind, each goal and target should be achieved by 2030 worldwide.

Lonza is committed to contributing to the realization of these goals. From the 17 SDGs, Lonza has identified 9 that we consider to be most relevant for our industry, operations and sustainability focus areas.

SDG icons (graphic)

Examples of Lonza’s contributions to the SDGs are our portfolio of agro ingredients to improve crop yields and food quality and to provide nutritional supplements. Lonza’s Pharma & Biotech segment contributes to saving lives, extending lives and enhancing lives. Our company is an equal opportunity employer who empowers our employees and continuously invests in innovation and resource efficiency. We also have established partnerships and sponsoring for research, education and basic healthcare.

To align our reporting with the contribution to the SDGs, we have tied each material topic from the materiality assessment to a relevant SDG. The Sustainability Report 2018 goes deeper into each topic and outlines Lonza’s management approach and performance results.

Lonza’s Material Topics

 

SDG

 

 

 

Product Range, Quality and Reliability

 

2, 12

Economic Performance

 

8

Environmental Compliance

 

12

Socioeconomic Compliance

 

12

Customer Satisfaction

 

3

Anti-Corruption

 

8

Protection of Human Rights

 

5, 8

Occupational Health & Safety

 

3, 8

Employee Engagement

 

5, 8

Innovation

 

9

Waste and Recycling

 

3, 6, 12

Greenhouse Gas Management

 

3, 12, 13

Non-Discrimination

 

5, 8

Customer Health and Safety

 

3, 12

Energy Conservation and Efficiency

 

9, 12, 13

Talent Management

 

4, 8

Safety and Sustainability Targets

Lonza’s long-term goal is to improve our sustainability performance and reduce our environmental footprint. From a medium-term perspective, Lonza set specific safety and environmental targets until 2020 based on the reported values for 2015.

Safety and Sustainability1

 

 

Unit

 

Target 2020

 

2018

 

Status

 

 

 

 

 

 

 

 

 

1

Includes all active production and R&D sites, as well as headquarters in the referenced years. Rates are expressed as units (per 1 million) per hours worked for safety and as units (per million sales) in CHF for sustainability metrics

2

Lost-time injury frequency rate: number of accidents per 1 million hours worked

3

Carbon dioxide equivalent, contains all climate-relevant gases standardized to the warming potential of CO2

4

Air impurities comprise VOC (volatile organic compounds), nitrogen oxides (NOx), sulphur dioxide (SO2) and particulate matter

5

Lonza’s commitment and measures to prevent and mitigate safety incidents can be found in the Occupational Health and Safety section of the Sustainability Report 2018

6

The GHG emissions intensity values for 2015–2017 and the 2020 goal have been restated due to data entry inaccuracies

LTIFR2 (frequency)

 

LTI/million hrs

 

0.6

 

1.29

 

5not achieved

CO2-eq (scope 1+2)3

 

t/million CHF

 

6173

 

152

 

achieved

Air impurities4

 

kg/million CHF

 

173

 

130

 

achieved

Energy (total)

 

GJ/million CHF

 

2,300

 

2,173

 

achieved

Industrial water

 

m3/million CHF

 

1,720

 

1,424

 

achieved

Waste (total)

 

t/million CHF

 

n.a.

 

24

 

n.a.

These goals included a 60% reduction of the 2015 safety indicator lost-time injury frequency rate (LTIFR) and a 10% reduction of environmental and resource rates: direct (scope 1) and indirect (scope 2) greenhouse gas emissions (GHG), as well as other established lead parameters for air emissions and energy and water consumption.

We applied targets based on million CHF sales on the basis of Lonza’s diverse product portfolio, which ranges from manufacturing of chemical bulk products to pharmaceutical ingredients, from medical capsules to food supplements, from gene technology to cell-media production. This diversity could only be integrated with a value-related denominator.

Staff member pipetting, blurry close-up (mood picture)

To account for the significant change in composition of our business through the integration of Capsugel and the divestiture of the Water Care business unit, we have reviewed the safety and sustainability targets. We will base the goals for the next decade on the year 2018 for continuing operations. Moreover, we would like to achieve a greenhouse gas reduction of more than 50% compared with our 2010 carbon footprint intensity, in line with the Paris Agreement timeline. Therefore, we have defined the goals for 2019–2030 that are depicted in the following table. In addition to the global goals, sites will set local targets for material topics for their locations, e.g. emissions, water quantity and parameters. Sites will develop a three-year roadmap to include their action plans around global and local targets.

 

 

Unit

 

FY 2018

 

FY 2018 cont. ops.

 

Targets 2030

1

Lost-time injury frequency rate: number of accidents per 1 million hours worked

2

For accidents we will establish a new target combining a pre-accident with an outcome metric

3

Carbon dioxide equivalent, contains all climate-relevant gases standardized to the warming potential of CO2

4

Lonza’s commitment and measures to prevent and mitigate safety incidents can be found in the Occupational Health and Safety section of the Sustainability Report 2018

 

 

 

 

 

 

 

 

 

LTIFR1

 

LTI/million hrs

 

1.29

 

1.19

 

2new 2019

CO2-eq (scope 1+2)

 

t/million CHF

 

152

 

151

 

97

Air impurities3

 

kg/million CHF

 

130

 

128

 

local

Energy

 

GJ/million CHF

 

2,173

 

2,231

 

1,695

Industrial Water

 

m3/million CHF

 

1,424

 

1,364

 

local

Waste4

 

mt/million CHF

 

24

 

25

 

19.0

A Systematic Approach to Safety and Sustainability

Our approach to safety and sustainability in Lonza is systematic. We have policies in place, including our aspirational Vision Zero, for the reduction of accidents, incidents and emissions. In all our sites, we collect data for accidents and incidents, energy, water and waste and analyze deviations from expected goals. We regularly visit and audit our sites for compliance risks and performance against Lonza standards.

Also we perform risk management analyses from high-level business effects to workplace risks and then find ways to mitigate these potential risks. In this context we see safety and sustainability as opportunities rather than a burden as they allow us to maximize our value creation for society, our customers and our people while reducing environmental footprint at the same time.

Our product ranges respond to several SDGs, e.g. agro products to SDG 2-Zero Hunger, and pharma and consumer health products to SDG 3-Good Health and Well-Being.

At the end of the reporting year, approximately 200 people worked in the core EHS field. EHS operating costs amounted to CHF 64.4 million in 2018, 8.6% up on the previous year. Capital expenditure on EHS was CHF 43 million in 2018.

Chemicals Registration, Labeling, Packaging

Lonza’s product formulation expertise, product-regulatory assurance and global regulatory support provide us distinct competitive advantages in a world of increasing requirements for chemicals registration, labeling and packaging. At Lonza a team of more than 60 regulatory experts in Europe, the Americas and Asia Pacific serve and support Lonza businesses globally ensuring compliance with existing regulatory requirements and to stay abreast of future requirements. Their expertise is also a great value to customers who incorporate our regulated ingredients in their end-use applications.

One challenging program is the European Registration, Evaluation, Authorization and Restriction of Chemicals (REACH) initiative. In the year 2018, Lonza Specialty Ingredients has successfully registered all substances imported, manufactured and marketed in the European Union under REACH by the deadline in May. REACH is an ongoing effort, and Lonza will continue to comply with the requirements.

Lonza focuses on the health and safety of its employees. Significant improvements were made with respect to the risk-based exposure control of chemicals in the work environment with formation of a corporate function for toxicological assessments of substances. Previously this assessment was done locally in the sites or by consultants. During 2018 nearly 700 substances were re-assessed for their safe handling limits, which puts Lonza in the top of the industry with respect to the efficiency and the results of the process.

Remediation – Responsibility for Our History

Lonza’s largest site in Visp (CH) continues to make progress to address legacy mercury contamination along a former wastewater discharge canal, on surrounding soils and other areas where contaminated sediments were deposited many decades ago. This industrial legacy can be traced back to when Lonza used large amounts of mercury as a catalyst in chemical processes, and the site discharged industrial mercury-contaminated wastewater into the canal in the 1930–1970s before the construction of the wastewater treatment plant.

Since 2013 Lonza has worked closely with the local communities in carrying out and financing all required technical investigations in residential areas and agricultural zones between Visp and Niedergesteln (CH). During 2018 vast advancements were made: by the end of the year 63 parcels of land in Visp and Raron (CH) were remediated. In 2019 the remediation of parcels in the residential area will be pursued and further investigations will be conducted on the agricultural area and the canal area.

open country landscape in the evening sun (mood picture)

Lonza, the Swiss Canton of Valais, the municipalities and other parties involved are working closely to efficiently resolve the mercury-related industrial heritage in the perimeters of concern. Additionally, Lonza maintains a public website (in German) on the remediation activities and progress.