Chiesi Group's Sustainability Report 2023 highlights impacts on strategic areas such as Patients, Planet, People and Prosperity while anticipating regulatory changes.

• Patients: Chiesi invested 23.8% of its revenues in research and development and advocated for patients with respiratory conditions, emphasizing the health impacts of air pollution.
• Planet: Chiesi is progressing towards its goal of Net Zero greenhouse gas emissions by 2035 with a detailed Climate Transition Plan. In 2023, the company earned a Platinum medal in the EcoVadis sustainability assessment.
• People: Chiesi introduced Global Parenthood Guidelines to contribute to gender equality and increased corporate volunteering hours by 77.5%.
• Prosperity: Chiesi distributed 77% of the economic value generated to stakeholders—including the local community, capital providers, public administration, employees, collaborators, suppliers, and vendors.

Parma, July 22^nd, 2024 – Chiesi, an international research-focused biopharmaceutical group, announces the release of its 2023 Sustainability Report, now available at www.chiesi.com. The report is organized in four key sections: Patients, Planet, People and Prosperity.
 

Chiesi's business approach is rooted in creating shared value by integrating societal challenges into its core mission. At the end of 2023, Chiesi merged its Shared Value & Sustainability and Global Strategy functions with key cross-functional departments, including Global Business Development, Competitive Intelligence, SKAI (Scientific and External Knowledge Analytics and Insights), COI&C (Center for Open Innovation and Competence), and Digital Health. This new integrated department is named "Strategy, Sustainability, and Growth Unit."
 

«Uniting these departments and their diverse skills and perspectives, we're pioneering a transversal approach to drive the company's future economic evolution and sustainable growth», shares Siham Imani, the new Head of the Strategy, Sustainability, and Growth Unit. «Through this integrative governance, we utilize our collective expertise to innovate and foster positive societal and environmental impact».

PATIENTS – Advancing Innovation and Health Equity to Meet Patient Needs

Chiesi’s mission is to develop and market innovative therapeutic solutions that enhance people’s quality of life. In 2023, driven by innovation, the Group invested €720.8 million—23.8% of sales (over €3 billion)—in Research and Development. Chiesi was once again recognized as the leading Italian pharmaceutical company for patents filed at the European Patent Office, with a portfolio of over 6,200 global patents.
 

In 2023, Chiesi advanced the construction of the Group's Biotech Center of Excellence, set to open in fall 2024. This facility will focus on the development and production of biological medicines, managing the entire process from cell cultivation to drug manufacturing and packaging for global distribution. The initiative aims to attract top talent, enhance Italy's specialized expertise, and strengthen Europe's leadership in biotechnological innovation.
 

Chiesi introduced a unified Patient Journey Framework to promote a culture of continuous patient engagement and needs assessment, recognizing the unique experience of each patient throughout their care journey. This approach considers the specific aspects of their diseases, the national health systems, and collaboration with physicians.
 

Aligned with the UN Agenda 2030, Chiesi is working on a Health Equity strategy to reach more patients and improve the standard of care for those living with diseases by addressing gaps in healthcare access. Nearly all Chiesi affiliates now have active projects aimed at achieving health equity.
 

PLANET – Climate Transition Plan: Achieving Net Zero by 2035

Chiesi is committed to fighting climate change, aiming to achieve Net Zero greenhouse gas (GHG) emissions by 2035. The Group has adopted a robust Climate Transition Plan ahead of the anticipated regulatory requirements of the Corporate Sustainability Reporting Directive (CSRD). This plan serves as a strategic roadmap to meet emission reduction targets and ensures long-term resilience and adaptability in addressing climate-related challenges.
 

In 2023, compared to our baseline year of 2019, Chiesi achieved a 39% reduction in Scope 1^[1] and 2^[2] GHG emissions. While our Scope 3 emissions have increased alongside company growth, Chiesi is investing over €350 million in developing a new pressurized metered dose inhaler (pMDI). This initiative aims to slash the current product carbon footprint by 90% by substituting the current propellant with a low global warming potential alternative. Following the completion of two short-term clinical trials to assess the safety of the new propellant, the Group initiated a long-term Phase III clinical safety trial in November 2023. Chiesi targets completing the primary clinical development of its Carbon Minimal pMDI portfolio, utilizing the low GWP propellant HFA 152a, by 2025.
 

The value chain is crucial in Chiesi’s path to achieving Net Zero by 2035. The Code of Interdependence, co-developed with strategic partners, guides the conduct of suppliers, partners, and distributors. Chiesi has begun implementing EcoVadis as a primary tool to evaluate its suppliers' environmental and social performance, earning itself the EcoVadis Platinum Medal^[3] in 2023.
 

PEOPLE – Prioritizing Wellbeing, Equality, and Community Development

Chiesi prioritizes employees’ wellbeing and fosters a positive, respectful work environment. This commitment is underscored by certifications like "Great Place to Work" (GPTW) and "Top Employer."
 

Through initiatives promoting equal opportunities, fair compensation, and supportive policies, the Group aims to ensure all employees are rewarded equitably. After closing the gender pay gap in 2022, Chiesi became the first Italian pharmaceutical company certified for Gender Equality by Bureau Veritas.
 

In 2023, Chiesi launched programs to achieve equal career progression for all genders by 2030. These include mentoring programs for women and Global Parenthood Guidelines supporting modern families, with flexible work policies, training for new parents, equitable and extended parental leave, and economic and childcare support.
 

Recognizing the importance of community health to business success, Chiesi's corporate volunteering program engaged over 2,000 employees (30.5% of the workforce), totaling 16,656 hours—an increase of 77.5% from 2022.

PROSPERITY – Do Good, Do Well, Repeat

Demonstrating our commitment to social and environmental responsibility, in 2023 Chiesi distributed 77% of the economic value generated to stakeholders - including the local community, capital providers, public administration, employees, collaborators, suppliers, and vendors. The remaining 23% was reinvested into the company to foster long-term growth.
 

«At Chiesi, we believe in the principle of 'Do good, do well, repeat.' This philosophy underscores our commitment to creating successful business solutions that benefit society, and reinvesting in impactful initiatives» says Maria Paola Chiesi, Vice Chair at Chiesi Group. «Through continuous innovation and strategic reinvestment, we aim to create a ripple effect of positive change, demonstrating that doing good and doing well are not only compatible but mutually reinforcing».
 

Chiesi's 2023 Sustainability Report has voluntarily undergone an external assurance process in compliance with the Global Reporting Initiative (GRI). GRI is an independent international standards organization that helps businesses understand and communicate their impacts on Environmental, Social, and Governance (ESG) issues. In response to the new European Corporate Sustainability Reporting Directive, Chiesi Group is committed to enhancing its data collection and reporting processes, giving equal importance to financial and sustainability reporting, and ensuring they are aligned and integrated.
 

Chiesi: Shaping a Sustainable Legacy and Future Vision

«Chiesi is a family-owned company with a history stretching back almost 90 years. This legacy gives us a unique ability to plan for the long term and it addresses the challenges facing current and future generations», says Giuseppe Accogli, CEO of the Group. «On this journey, our aim is not to stand out as a singular entity. Instead, we recognize that effectively addressing the challenges of the future necessitates a collaborative effort among companies, regulators, and suppliers within our industry».
 

Chiesi has strategically approached sustainable change in recent years. Last year, the company introduced an ambitious Sustainability Strategic Plan spanning 2023-2028, serving as a comprehensive roadmap. Previously, Chiesi Group adopted the legal form of Benefit Corporation (in 2018 in Italy and the U.S.; in 2021 in France) and became a certified B Corp (2019), making environmental, social, and economic sustainability growth drivers of its business development.