Our commitment to ESG and sustainability starts at the top. Through Board and executive-level oversight, as well as dedicated roles and responsibilities at every level of the organization, we’ve integrated sustainability and the management of ESG-related risks and opportunities throughout Elanco.
Our Board and executive leadership team consider the management of ESG issues and related sustainability efforts an important priority for Elanco. The Board’s Corporate Governance Committee oversees our overall ESG and sustainability program – including our strategy to manage ESG risks, opportunities and policies – as well as sustainability-related programs and goals. The Compensation and Human Capital Committee periodically evaluates applicable ESG issues, such as our policies and strategies related to workforce diversity and human capital management. The Innovation, Science and Technology Committee assists the Board in oversight of research and development initiatives and associated regulatory developments. And the Audit Committee oversees audits/assurance of our ESG-related disclosures.
The Global Head of ESG and Sustainability provides quarterly updates about our ESG and sustainability program to the Corporate Governance Committee, including an annual update to the full Board.
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Our Global Head of ESG and Sustainability oversees internal management of Elanco’s ESG and sustainability program – including associated risks, strategy, programs, goals and disclosures. In 2022, we established a centralized ESG and sustainability oversight team which includes a Global ESG and Sustainability Advisor and a Global ESG Reporting Lead. These individuals, who report to the Global Head of ESG and Sustainability, help identify and drive internal understanding of ESG-related risks, accelerate measurement and progress across current and future sustainability initiatives, contribute to the development of incremental targets and enhance data collection for disclosure. The team works to demonstrate Elanco’s broad commitment to sustainability, while seeking to address the increasingly sophisticated expectations of regulators, shareholders, employees and customers.
Leadership across the company contributes to these efforts – including accountability by our management Executive Committee, led by our Chief Executive Officer and his direct reports, to which our Global Head of ESG and Sustainability provides regular updates.
Further oversight is provided by the Elanco Healthy Purpose Steering Committee, a cross-functional group comprised of senior representatives from across our business, including communications, enterprise risk management, finance, human resources, internal audit, investor relations, legal and compliance, manufacturing and quality, marketing and regulatory – chaired by our Executive Vice President, General Counsel and Corporate Secretary. This steering committee meets approximately monthly and, among other obligations, monitors our managerial approach toward leading ESG risks and opportunities, helps accelerate progress toward current goals, and assists in the development and approval of new targets. The committee also oversees the disclosures that communicate our progress and works to integrate ESG and sustainability issues throughout departmental decision making. The group receives updates at each meeting from the Global Head of ESG and Sustainability, as well as various programmatic leads.
Our Health, Safety and Environment (HSE) department – part of our manufacturing and quality organization and led by our Senior Director of Global HSE – has operational responsibility for the resilience of our operations, including energy and water use, as well as waste and emissions management. The Senior Director of Global HSE, Global Head of ESG and Sustainability, and their respective teams collaborate to drive cross-departmental ownership and implementation of various environmental initiatives and risk mitigation activities. The HSE department receives oversight from the global HSE Steering Committee, a cross-functional group which meets quarterly and includes representatives such as our Executive Vice President of Human Resources; our Executive Vice President of Innovation, Regulatory and Business; our Executive Vice President of Manufacturing and Quality; our Executive Vice President, General Counsel and Corporate Secretary; and our Global Head of ESG and Sustainability. Like the Healthy Purpose Steering Committee, the HSE Steering Committee oversees our managerial approach toward leading environmental issues and risks, monitors progress toward current goals, helps develop and approve new targets and oversees environmental disclosures. The committee receives updates at each meeting from the Senior Director of Global HSE.
We utilize working groups led by senior managers and comprised of employees across the globe and throughout our company – to foster cross functional collaboration and tracking of key performance indicators (KPIs) toward the achievement of objectives and monitoring of day-to-day business performance. Workgroup participants advocate for ESG and sustainability initiatives across the business and help incorporate associated performance metrics into everyday decision-making. Working group leaders, in addition to the global HSE team and/or global ESG and sustainability team, provide periodic performance updates to the Healthy Purpose Steering Committee, HSE Steering Committee and/or the management Executive Committee, as appropriate.
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