ESG and Sustainability Governance
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.
Board Oversight of ESG and Sustainability
At the management level, the VP of Investor Relations and ESG leads the program, supported by a dedicated team. They work to mitigate risks, measure progress, and align with stakeholder expectations, providing regular updates to the Executive Committee and CEO. Cross-functional ESG Steering Committees, comprised of senior representatives from diverse departments, monitor risk, drive progress, and integrate ESG into departmental decisions. The Health, Safety, and Environment (HSE) department, overseen by a global steering committee, manages environmental resilience and collaborates with the ESG team. Working groups, with employees from various departments and locations, foster collaboration and integrate ESG into daily decisions. This multi-layered framework ensures accountability and drives meaningful progress on ESG initiatives throughout Elanco. The Vice President of Investor Relations and ESG 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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Management Responsibility for ESG and Sustainability
Our Vice President of Investor Relations and ESG 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 Reporting Lead and an ESG Controller. This team helps 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 Vice President of Investor Relations and ESG provides regular updates.
Further oversight is provided by multiple ESG Steering Committees, cross-functional groups 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.. These steering committees meet approximately monthly and, among other obligations, monitor our managerial approach toward leading ESG risks and opportunities, help accelerate progress toward current goals, and assist in the development and approval of new targets. The committees also oversee the disclosures that communicate our progress and work to integrate ESG and sustainability issues throughout departmental decision making. The groups receive updates at each meeting from the Vice President of Investor Relations and ESG, or her designee, 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, Vice President of Investor Relations and ESG, 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 Vice President of Investor Relations and ESG. Like the ESG Reporting 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.
Working Groups
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 ESG Reporting Steering Committee, HSE Steering Committee and/or the Elanco Executive Committee, as appropriate.
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