Lonza Archives - SustainCase - Sustainability Magazine Insights on how you can protect the environment, maintain and increase the value of your company, through a structured CSR/Sustainability process with the use of the GRI Standards. Learn how Today's Best-Run Companies are achieving Economic, Social, and Environmental Success - and How You Can Too... Mon, 06 Mar 2023 14:24:06 +0000 en-US hourly 1 https://wordpress.org/?v=6.9.4 Case study: How Lonza creates economic value for its stakeholders https://sustaincase.com/case-study-how-lonza-creates-economic-value-for-its-stakeholders/ Fri, 02 Dec 2022 07:09:44 +0000 https://ccprowebs.com/new-sustaincase.com/?p=14475 Lonza is one of the world’s leading and most trusted suppliers to the pharma, biotech and specialty ingredients markets, working together to develop medicines and products that improve and save lives. , from its customers and suppliers to employees and their families, the communities in which it operates and its global shareholders. This case study is based on the 2020 Sustainability Report by Lonza, prepared in accordance with the GRI Standards, that can be found at this link. Through all case studies we aim to demonstrate what CSR/ ESG/ sustainability reporting done responsibly means. Essentially, it means: a) identifying a company’s most […]

The post Case study: How Lonza creates economic value for its stakeholders appeared first on SustainCase - Sustainability Magazine.

]]> Lonza is one of the world’s leading and most trusted suppliers to the pharma, biotech and specialty ingredients markets, working together to develop medicines and products that improve and save lives. For over 120 years, Lonza has generated sustainable value for all its stakeholders  Tweet This!, from its customers and suppliers to employees and their families, the communities in which it operates and its global shareholders.

This case study is based on the 2020 Sustainability Report by Lonza, prepared in accordance with the GRI Standards, that can be found at this link. Through all case studies we aim to demonstrate what CSR/ ESG/ sustainability reporting done responsibly means. Essentially, it means: a) identifying a company’s most important impacts on the environment, economy and society, and b) measuring, managing and changing.

Abstract

Lonza seeks to create value for its shareholders, customers, employees, suppliers and communities, and distributes its derived economic value to various stakeholders through a variety of streams. This includes governments through taxes, employees through compensation and benefits, shareholders through dividends and share price appreciation, suppliers and service providers through raw material and service prices, and society through taxes and local community projects. In order to create economic value for its stakeholders Lonza took action to:

  • create economic value for employees
  • create economic value for shareholders
  • create economic value for public authorities
  • create economic value for lenders

What are the material issues the company has identified?

In its 2020 Sustainability Report Lonza identified a range of material issues, such as customer satisfaction, quality and reliability, socioeconomic compliance, anti-corruption, customer health and safety. Among these, creating economic value for its stakeholders stands out as a key material issue for Lonza.

Stakeholder engagement in accordance with the GRI Standards              

The Global Reporting Initiative (GRI) defines the Principle of Stakeholder Inclusiveness when identifying material issues (or a company’s most important impacts) as follows:

“The reporting organization shall identify its stakeholders, and explain how it has responded to their reasonable expectations and interests.”

Stakeholders must be consulted in the process of identifying a company’s most important impacts and their reasonable expectations and interests must be taken into account. This is an important cornerstone for CSR / sustainability reporting done responsibly.

Key stakeholder groups Lonza engages with: 

Stakeholder Group
Suppliers
Customers
Group Management and Board of Directors
Employee Associations
Employees
Associations and Competitors
Consumers and Patients
Lenders
Shareholders and Investors
Rating Agencies and Analysts
Proxy Advisors
Regulators
Government / Authorities
Future Talent
Local Communities
Scientific Community
NGOs
Media / General Public

How stakeholder engagement was made to identify material issues

To identify and prioritise material topics Lonza conducted a materiality survey among its stakeholders, to capture their views on topics to be reported upon, actively managed or simply monitored. The survey’s participants included employees, customers, the scientific community, financial analysts, future talent, media and Lonza’s management and Board.

What actions were taken by Lonza to create economic value for its stakeholders?

In its 2020 Sustainability Report Lonza reports that it took the following actions for creating economic value for its stakeholders:

  • Creating economic value for employees
  • As a purpose-led and responsible company, Lonza is an attractive employer for its 16,540 employees worldwide. In 2020, Lonza spent CHF 1,643 million for its employees.
  • Creating economic value for shareholders
  • In 2020, Lonza paid CHF 206 million to its shareholders.
  • Creating economic value for public authorities
  • In 2020, Lonza paid CHF 95 million to public authorities in taxes.
  • Creating economic value for lenders
  • In 2020, Lonza paid CHF 94 million to lenders.

Which GRI Standards and corresponding Sustainable Development Goals (SDGs) have been addressed?

The GRI Standard addressed in this case is: Disclosure 201-1 Direct economic value generated and distributed

Disclosure 201-1 Direct economic value generated and distributed corresponds to:

 

78% of the world’s 250 largest companies report in accordance with the GRI Standards

SustainCase was primarily created to demonstrate, through case studies, the importance of dealing with a company’s most important impacts in a structured way, with use of the GRI Standards. To show how today’s best-run companies are achieving economic, social and environmental success – and how you can too.

Research by well-recognised institutions is clearly proving that responsible companies can look to the future with optimism.

7 GRI sustainability disclosures get you started

Any size business can start taking sustainability action

GRI, ISEP, CPD Certified Sustainability courses (2-5 days): Live Online or Classroom  (venue: London School of Economics)

  • Exclusive FBRH template to begin reporting from day one
  • Identify your most important impacts on the Environment, Economy and People
  • Formulate in group exercises your plan for action. Begin taking solid, focused, all-round sustainability action ASAP. 
  • Benchmarking methodology to set you on a path of continuous improvement

See upcoming training dates.
References:

This case study is based on published information by Lonza, located at the link below. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the report’s meaning. If you would like to quote these written sources from the original please revert to the following link:

https://annualreport.lonza.com/2020/documents/Lonza_Sustainability_Report_2020.pdf

Note to Lonza: With each case study we send out an email requesting a comment on this case study. If you have not received such an email please contact us.

The post Case study: How Lonza creates economic value for its stakeholders appeared first on SustainCase - Sustainability Magazine.

]]> Case study: How Lonza promotes responsible procurement https://sustaincase.com/case-study-how-lonza-promotes-responsible-procurement/ Fri, 17 Jun 2022 05:53:33 +0000 https://ccprowebs.com/new-sustaincase.com/?p=13713 Founded in Switzerland in 1897, Lonza is one of the world’s leading and most trusted suppliers to the pharma, biotech and specialty ingredients markets. By engaging with its stakeholders, Lonza has been able to identify gaps, future trends and requirements regarding sustainable sourcing and supplier risk assessment. This case study is based on the 2020 Sustainability Report by Lonza, prepared in accordance with the GRI Standards, that can be found at this link. Through all case studies we aim to demonstrate what CSR/ ESG/ sustainability reporting done responsibly means. Essentially, it means: a) identifying a company’s most important impacts on the environment, […]

The post Case study: How Lonza promotes responsible procurement appeared first on SustainCase - Sustainability Magazine.

]]> Founded in Switzerland in 1897, Lonza is one of the world’s leading and most trusted suppliers to the pharma, biotech and specialty ingredients markets. By engaging with its stakeholders, Lonza has been able to identify gaps, future trends and requirements regarding sustainable sourcing and supplier risk assessment.

This case study is based on the 2020 Sustainability Report by Lonza, prepared in accordance with the GRI Standards, that can be found at this link. Through all case studies we aim to demonstrate what CSR/ ESG/ sustainability reporting done responsibly means. Essentially, it means: a) identifying a company’s most important impacts on the environment, economy and society, and b) measuring, managing and changing.

Abstract

Lonza’s procurement teams focus on procurement excellence  Tweet This!, developing and implementing category strategies, managing the selection of suppliers and negotiation of terms, and reducing exposure to supply risks. In order to promote responsible procurement Lonza took action to:

  • promote responsible practices
  • establish a comprehensive and integrated supplier risk-management process
  • promote due diligence

What are the material issues the company has identified?

In its 2020 Sustainability Report Lonza identified a range of material issues, such as economic performance, customer satisfaction, environmental compliance, anti-corruption, occupational health and safety. Among these, promoting responsible procurement stands out as a key material issue for Lonza.

Stakeholder engagement in accordance with the GRI Standards

The Global Reporting Initiative (GRI) defines the Principle of Stakeholder Inclusiveness when identifying material issues (or a company’s most important impacts) as follows:

“The reporting organization shall identify its stakeholders, and explain how it has responded to their reasonable expectations and interests.”

Stakeholders must be consulted in the process of identifying a company’s most important impacts and their reasonable expectations and interests must be taken into account. This is an important cornerstone for CSR / sustainability reporting done responsibly.

Key stakeholder groups Lonza engages with:

Stakeholder Group
Suppliers
Customers
Group Management and Board of Directors
Employee Associations
Employees
Associations and Competitors
Consumers and Patients
Lenders
Shareholders and Investors
Rating agencies and Analysts
Proxy Advisors
Regulators
Government / Authorities
Future Talent
Local Communities
Scientific Community
NGOs
Media / General Public

How stakeholder engagement was made to identify material issues

To identify and prioritise material topics Lonza engaged with its stakeholders through a materiality survey, to capture their input on topics to be reported upon, actively managed or simply monitored. They included employees, customers, the scientific community, financial analysts, future talent, media and Lonza’s management and Board.

What actions were taken by Lonza to promote responsible procurement?

In its 2020 Sustainability Report Lonza reports that it took the following actions for promoting responsible procurement:

  • Promoting responsible practices
  • Lonza is a member of the Pharmaceutical Supply Chain Initiative (PSCI). PSCI is an association of pharmaceutical, biotech and medical device industries. Its aim is to establish and promote responsible practices to improve ethics, labour, health, safety and environmentally sustainable outcomes, as well as to improve supplier capability for the members’ supply chains. This active membership enhances the firm’s capabilities and processes in sustainable supply chain management. As a PSCI member, Lonza performs audits of key suppliers and is in turn audited with a similar scope by its customers.
  • Establishing a comprehensive and integrated supplier risk-management process
  • Lonza’s Procurement has established a comprehensive and integrated supplier risk-management process to support sustainable business growth by capturing opportunities, anticipating and mitigating supply risk. The following key principles define the risk management framework using Enterprise Resource Planning (ERP) automation:
    • Key supplier risk assessment and management by global procurement experts;
    • Integrating risk assessments into business processes to enable and support business continuity;
    • Using criteria and a risk register for scalable assessments of materials and suppliers;
    • Monitoring and ranking supply risks, including risk mitigation and implementation;
    • Embedding in the risk assessment process the supplier’s on-time/in-full delivery and quality performance ratings. 
  • Promoting due diligence
  • As part of its commitment to sustainable development, Lonza’s Supplier Code of Conduct sets high standards for suppliers and provides a framework to evaluate their practices. Lonza carefully selects and evaluates suppliers for security of supply and specifications of materials and services and also audits some of its critical suppliers to assure and improve performance and relationships, in line with the Pharmaceutical Supply Chain Initiative (PSCI) principles. Lonza operates an automated anti-bribery and anti-corruption due diligence process, monitoring for high-risk suppliers. This is run by the Ethics & Compliance Group and integrated into the procurement and supplier management process through Lonza’s enterprise resource planning (ERP) system (SAP). Third parties in qualification are blocked in SAP until the due diligence process is completed. The process includes real-time corruption, trade sanctions, and adverse media screening for all third-party suppliers with increased due diligence for higher-risk third parties. For the latter, the process includes mandatory completion of a due diligence questionnaire and a custom made anti-bribery and anti-corruption training, as well as competition law. Third parties with higher risk profiles are then further reviewed and assessed by members of the Ethics & Compliance Group. Lonza’s suppliers are continuously monitored and, where relevant, full due diligence is completed on a two-year automated cycle.

Which GRI Standards and corresponding Sustainable Development Goals (SDGs) have been addressed?

The GRI Standards addressed in this case are:

1) Disclosure 308-1 New suppliers that were screened using environmental criteria

2) Disclosure 414-1 New suppliers that were screened using social criteria

 

Disclosure 308-1 New suppliers that were screened using environmental criteria does not correspond to any SDG.

Disclosure 414-1 New suppliers that were screened using social criteria corresponds to:

 

78% of the world’s 250 largest companies report in accordance with the GRI Standards

SustainCase was primarily created to demonstrate, through case studies, the importance of dealing with a company’s most important impacts in a structured way, with use of the GRI Standards. To show how today’s best-run companies are achieving economic, social and environmental success – and how you can too.

Research by well-recognised institutions is clearly proving that responsible companies can look to the future with optimism.

7 GRI sustainability disclosures get you started

Any size business can start taking sustainability action

GRI, ISEP, CPD Certified Sustainability courses (2-5 days): Live Online or Classroom  (venue: London School of Economics)

  • Exclusive FBRH template to begin reporting from day one
  • Identify your most important impacts on the Environment, Economy and People
  • Formulate in group exercises your plan for action. Begin taking solid, focused, all-round sustainability action ASAP. 
  • Benchmarking methodology to set you on a path of continuous improvement

See upcoming training dates.
References:

This case study is based on published information by Lonza, located at the link below. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the report’s meaning. If you would like to quote these written sources from the original please revert to the following link:

https://annualreport.lonza.com/2020/documents/Lonza_Sustainability_Report_2020.pdf

Note to Lonza: With each case study we send out an email requesting a comment on this case study. If you have not received such an email please contact us.

The post Case study: How Lonza promotes responsible procurement appeared first on SustainCase - Sustainability Magazine.

]]> Case study: How Lonza combats corruption https://sustaincase.com/case-study-how-lonza-combats-corruption/ Tue, 03 Mar 2020 08:19:47 +0000 https://ccprowebs.com/new-sustaincase.com/?p=10489 Lonza is one of the world’s leading and most-trusted suppliers to the pharmaceutical, biotech and specialty ingredients markets, with approximately 15,500 full-time employees worldwide. As a global integrated solutions provider, it is Lonza’s policy to conduct all its business in an honest, fair and ethical manner. This case study is based on the 2018 Sustainability Report by Lonza published on the Global Reporting Initiative Sustainability Disclosure Database that can be found at this link. Through all case studies we aim to demonstrate what CSR/ ESG/ sustainability reporting done responsibly means. Essentially, it means: a) identifying a company’s most important impacts on the […]

The post Case study: How Lonza combats corruption appeared first on SustainCase - Sustainability Magazine.

]]> Lonza is one of the world’s leading and most-trusted suppliers to the pharmaceutical, biotech and specialty ingredients markets, with approximately 15,500 full-time employees worldwide. As a global integrated solutions provider, it is Lonza’s policy to conduct all its business in an honest, fair and ethical manner.

This case study is based on the 2018 Sustainability Report by Lonza published on the Global Reporting Initiative Sustainability Disclosure Database that can be found at this link. Through all case studies we aim to demonstrate what CSR/ ESG/ sustainability reporting done responsibly means. Essentially, it means: a) identifying a company’s most important impacts on the environment, economy and society, and b) measuring, managing and changing.

Abstract

Lonza takes a zero-tolerance approach to bribery and corruption  Tweet This! and is committed to acting professionally, fairly and with integrity at all times, implementing and enforcing effective systems to help prevent bribery and corruption. In order to combat corruption Lonza took action to:

  • monitor and promote compliance
  • implement an Ethics Hotline
  • provide communication and training on anti-corruption policies and procedures

What are the material issues the company has identified?

In its 2018 Sustainability Report Lonza identified a range of material issues, such as economic performance, product quality and reliability, environmental compliance, customer satisfaction, occupational health and safety, socioeconomic compliance. Among these, combatting corruption stands out as a key material issue for Lonza.

Stakeholder engagement in accordance with the GRI Standards              

The Global Reporting Initiative (GRI) defines the Principle of Stakeholder Inclusiveness when identifying material issues (or a company’s most important impacts) as follows:

“The reporting organization shall identify its stakeholders, and explain how it has responded to their reasonable expectations and interests.”

Stakeholders must be consulted in the process of identifying a company’s most important impacts and their reasonable expectations and interests must be taken into account. This is an important cornerstone for CSR / sustainability reporting done responsibly.

Key stakeholder groups Lonza engages with:

Stakeholder Group
Suppliers
Customers
Group Management and Board of Directors
Employee Associations
Employees
Associations and Competitors
Consumers and Patients
Lenders
Shareholders and Investors
Rating agencies and Analysts
Proxy Advisors
Regulators
Government / Authorities
Future Talent
Local Communities
Scientific Community
NGOs
Media / General Public

How stakeholder engagement was made to identify material issues

To identify and prioritise material topics Lonza engaged with its stakeholders – including employees, customers, academia, financial analysts, future talent, media and Lonza management and Board – through a materiality survey, to capture their input on topics to be made transparent and reported upon, actively managed or simply monitored.

What actions were taken by Lonza to combat corruption?

In its 2018 Sustainability Report Lonza reports that it took the following actions for combatting corruption:

  • Monitoring and promoting compliance
  • Lonza has a dedicated Ethics and Compliance team that is charged with monitoring and promoting compliance with anti-bribery and anti-corruption laws. In addition, Lonza is considering engaging in periodic global trend analyses, to identify areas of anti-corruption risk and implement mitigation steps as necessary, as well as implementing a new electronic interface, for third-party due diligence. Accordingly, a survey of Lonza’s sites regarding anti-corruption precautions was initiated in 2018, with results being communicated after analysis.
  • Implementing an Ethics Hotline
  • Lonza’s Ethics Hotline provides a mechanism for employees and others to report potential violations of the Code of Conduct, any Lonza policies or procedures (including those related to anti-corruption), or applicable laws or regulations. Such reports may be made anonymously where allowable by law. Those found responsible for any violations may face disciplinary action, which includes termination of employment. 
  • Providing communication and training on anti-corruption policies and procedures
  • All Lonza employees have access via the company’s intranet site to Lonza’s Anti-Corruption and Anti-Bribery Policy. New hires are trained via an online training module on anti-corruption and anti-bribery, while anti-corruption and anti-bribery is also covered in Lonza’s Code of Conduct, and in the annual Code of Conduct training required of all employees. Suppliers that enter into Lonza’s standard supply agreement agree to adhere to Lonza’s Supplier Code of Conduct, which sets forth commitments to working against corruption and bribery. Lonza’s Supplier Code of Conduct applies to both its suppliers and to any subcontractors or other third parties that a supplier may engage in the performance of their contractual obligations. Currently, suppliers are instructed to implement internal measuring procedures, tools, and indicators required to guarantee adherence to the Lonza Supplier Code of Conduct principles. Suppliers are also encouraged to report any violations by e-mail, or by using Lonza’s Ethics Hotline.

Which GRI Standards and corresponding Sustainable Development Goals (SDGs) have been addressed?

The GRI Standards addressed in this case are:

1) Disclosure 205-1 Operations assessed for risks related to corruption

2) Disclosure 205-2 Communication and training about anti-corruption policies and procedures

 

Disclosure 205-1 Operations assessed for risks related to corruption corresponds to:

  • Sustainable Development Goal (SDG) 16: Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels
  • Business theme: Anti-corruption

Disclosure 205-2 Communication and training about anti-corruption policies and procedures corresponds to:

  • Sustainable Development Goal (SDG) 16: Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels
  • Business theme: Anti-corruption

 

78% of the world’s 250 largest companies report in accordance with the GRI Standards

SustainCase was primarily created to demonstrate, through case studies, the importance of dealing with a company’s most important impacts in a structured way, with use of the GRI Standards. To show how today’s best-run companies are achieving economic, social and environmental success – and how you can too.

Research by well-recognised institutions is clearly proving that responsible companies can look to the future with optimism.

7 GRI sustainability disclosures get you started

Any size business can start taking sustainability action

GRI, ISEP, CPD Certified Sustainability courses (2-5 days): Live Online or Classroom  (venue: London School of Economics)

  • Exclusive FBRH template to begin reporting from day one
  • Identify your most important impacts on the Environment, Economy and People
  • Formulate in group exercises your plan for action. Begin taking solid, focused, all-round sustainability action ASAP. 
  • Benchmarking methodology to set you on a path of continuous improvement

See upcoming training dates.

 

References:

1) This case study is based on published information by Lonza, located at the link below. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the report’s meaning. If you would like to quote these written sources from the original, please revert to the original on the Global Reporting Initiative’s Sustainability Disclosure Database at the link:

http://database.globalreporting.org/

2) https://www.globalreporting.org/standards/gri-standards-download-center/

Note to Lonza: With each case study we send out an email requesting a comment on this case study. If you have not received such an email please contact us.

The post Case study: How Lonza combats corruption appeared first on SustainCase - Sustainability Magazine.

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