ESG Material Issues Assessment

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Focused on What Matters Most

To identify and assess the ESG issues, responsibilities, risks and opportunities that are most important to our business, Elanco is committed to regular engagement with customers, non-governmental organizations (NGOs), suppliers, academia, investors, industry organizations, community groups, employees and other stakeholders. Our interactions with these groups directly influence our internal policies and practices, and inform our Healthy Purpose objectives and public disclosures. We further monitor emerging ESG issues and current events on an ongoing basis and prioritize efforts on matters applicable to Elanco, as appropriate.

We conducted our first formal ESG materiality assessment in 2020, led by a cross-functional internal team with external support. We expect to refresh our ESG materiality assessment in the next year, to ensure our ESG priorities and initiatives evolve with business developments, changes to stakeholder expectations and forthcoming disclosure regulations.

Additional detail on our managerial approach to material ESG topics is available in our collection of ESG Issue Briefs.

Healthier Animals

Animal Health & DiseaseThe health of all animals including farm animals, pets and animals used in trials, inclusive of managing the disease.
Animal ResearchThe responsible use of animals in research.
Animal WelfareThe ethical and humane treatment of animals, notably in a pharmaceutical trial setting.
Quality of Animal DietThe food and nutrition being fed to animals both in a farm 'feed' context and as well as pet food.
Responsible Pet OwnershipThe importance and value of the overall care of a pet by its owner. 

Healthier People

Access & AffordabilityThe ability of veterinarians, farmers and pet owners to access veterinary medicine products.
Antimicrobial StewardshipIdentification of the challenges related to the overuse of and declining efficacy of antibiotics. Also includes the promotion of responsible use of antibiotics.
Community RelationsThe engagement of a business with local communities that explicitly seeks to create shared value.
Farmer LivelihoodsThe welfare of farmers and their ability to generate sustainable incomes.
Human-Animal BondThe benefits to people and pets of living together or having pets around.
Public HealthActivity that promotes and creates awareness of the general well-being of populations and illness prevention/cure.
Resilient Food SystemsA system of food production that is both sustainable and capable of delivering the food needed to prevent hunger.
Veterinarian LivelihoodsThe welfare of veterinarians and their ability to generate sustainable incomes.

Healthier Planet

Air PollutionEmissions into the air that have impacts are usually through particulate emissions.
Biodiversity and WildlifeThe flora and fauna that make up the living elements of the planet include land, sea, lakes and rivers.
Climate Change (GHG, Energy)The response to climate change through specific methodologies. The issues caused by the overproduction of GHGs that lead to climate change. 
Natural Resource UseThe general consideration is given to the extraction of resources from nature and their replenishment or not, e.g. deforestation.
PackagingPackaging as a design challenge and associated waste and emissions concerns.
Pharmaceuticals in the Environment (PIE)The risk of potential damage caused by pharmaceuticals being released into the environment.
PlasticsPlastic as a material and associated waste and emissions concerns.
WasteAll waste topics, including physical and hazardous waste. Plastics and packaging excluded. 
WaterThe use of water, limited localized availability of water and the pollution of water through farming or manufacturing processes. 

Healthier Enterprise

Business EthicsThe application of ethics to a business, including compliance with legal regulations and company policies, anti-corruption efforts and management of third parties.
Consumer Trends & ShiftsThe application of ethics to a business, including compliance with legal regulations and company policies, anti-corruption efforts and management of third parties.
Corporate GovernanceThe businesses' approach to management of all strategic risks and operational systems. Also includes stakeholder management.
Counterfeit DrugsThe potential for counterfeit products in the marketplace. 
Diversity, Equity & Inclusion (DEI)Diversity and inclusion policies and procedures that seek to promote inclusive working cultures. 
Employee Health and SafetyThe safety of workers and the protection of their physical and mental well-being.
Human RightsThe treatment of people, rooted in basic human rights, international law and local legislation. 
Information SecuritySecurity of all information assets within the company including cybersecurity and data privacy.
InnovationThe necessity of bringing innovation to customers and to the market.
Intellectual Property (IP) Rights The protection of and ownership of intellectual property.
Labor IssuesThe treatment of workers employed by the company often involving unions, matters of pay association.
PhilanthropyA company's charitable activities and the collaboration with partners to achieve philanthropic goals.
Product Quality & Safety The consistent focus on producing high-quality products.
Responsible MarketingThe accurate and appropriate use of marketing that avoids confusion or harm.
Supply ChainManagement of third-party suppliers, including ethical conduct, quality and adherence to expected policies and procedures.
Talent Attraction and Retention The recruiting, training and engagement efforts of all employees.
TransparencyThe need or desire by stakeholders to see a higher level of disclosure from a business.
Research Trial ConductThe policies and procedures governing R&D trials.

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