Sustainability in Food and Drug Industry

Signals and trends Future Expectations

Uneven access- socio- Currently $54 bn per year
economic and technological gap in achieving SDGs health
advances spreading at an targets, this industry can
uneven rate, Opportunity for have positive impact in this
companies to integrate regard, mobilizing capital is
technology, collaborate and the need, collaboration
innovate to achieve between farmers, food
sustainability and holistic producers, food retailers,
health case pharma companies and
policy makers at all levels to
build strong sustainable
systems

Challenges Business point of view

Climate enabled pandemics, Increased R&D expenses,
risks of antimicrobial help build pandemic
resistance, ongoing preparedness, ageing world
consumer driven shift Steps
Waste-reduction in product development, energy population and improvement
towards wellness and holistic in sustainability practices
and utility saving solutions, sharing ideas and
illness prevention
experiences, achieving sustainability through
serialization of pharmaceutical products
 COMPANY OVERVIEW
Seven & I Sinopharm Bayer AG Sun Pharmaceuticals Smiths Food Tesco
Holdings and Drugs
(Krogers)
Country Japan China Germany India USA UK

Market - Cap $30.3 billion $9.86 billion $70.73 billion $22 billion - $52 billion

Revenue $61.5 billion $28.80 billion $39.58 billion $4.4 billion $0.723 billion $63.91 billion

Profit $1.8 billion $0.7097 billion $1.711 billion $0.29 billion - $2.72 billion

Compliance/ Sustainable Development SA8000, GSP, ISO GRI Reporting UN Sustainable Development Goals, GRI Reporting UN SDG, UN Women'd
Signatory to Goals, United Nations 9001, Anti- Standards, UN National Voluntary Guidelines, ISO Standards, Empowerment Principles,
Global Compact, NDF- corruption 8 rules Global Compact, 14001:2015 compliant Environmental principles of Clean Van Commitment,
HACCP Certification, ISO ISO 26000, OECD Management System, OHSAS UNGC Taskforce on climate-
22000, ISO 14001 18001:2007/ISO 45001:2018 related Financial
compliant Occupational Health and Disclosures, Ethical
Safety Management System Trading Initiative,
Consumer Goods Forum
 Health & Well-Being
Bayer AG
1. Regular medical check-ups, sports
programs, rehabilitation and on-site medical
Seven & I Holdings care for employees
2. Clinical trials adhere to strict international
1. Expansion of health conscious food guidelines and high quality standards
2. Trans-fatty acids were successfully reduced to
zero
3. Standards like NDF-HACCP and ISO 9001 for
Sun Pharmaceuticals Ltd.
food hygiene
4. Adopted cold chains for low temperature 1. Healthcare For The Under Served
transportation and processing 2. Malaria Elimination Demonstration Project
3. Health camps in the project villages
4. Medical equipment and infrastructural
Smiths Food & Drug support to existing government medical
facilities
1. SHARING COURAGE initiative to raise
donations to fight breast cancer
2. Raised funds for children’s hospitals by
partnering with vendors, customers and Tesco
associates. 1. Involve its customers in adopting a healthier
Sinopharm lifestyle through their Healthy Choice Labels
1. Adhering to the philosophy of “Caring for Life; and Health Charity Partners
Attending to Health” 2. Food offerings to ones with lesser fat, sugar
2. Socially responsible practice activities such and salt
as “Disaster and Emergency Relief” and 3. “Helpful little swaps” initiative
“Volunteer Service”
 WATER & SANITATION
Sales of Alaska Seafood Products –
• convey to customers the quality of Alaska Seafood
products, which are sourced through
environmentally friendly fishing practices.
Seven and • In Alaska, the source region of the brand's all-
I Holdings natural marine products, Alaska Seafood strictly
manages resources and fisheries to ensure that
the ecosystem that nurtures these natural marine
resources is not impaired.

Sinopharm

Smith’s food and drug • Strengthening the daily maintenance and

management of the water-consuming equipment
• Preventing the running, spillage, dripping, leakage
and constant running of water to save water
• Supported 23 fishery improvement projects to develop
sustainable processes aims to source all of its wild sea
sourcing to be from sustainable sources by 2025
• added a new anaerobic water treatment plant for water
treatment.
 WATER & SANITATION
BAYER AG
• Aqueduct Water Risk Atlas published by the
World Resources Institute to ascertain whether all sites
that are located in water-scarce areas or in areas
identified as being threatened by water scarcity have a
water management system.
• 95% of these sites already have a water management
system.
• Target of achieving 100% coverage in 2020
• Operational water use and innovative products such as
seeds with a reduced water requirement
• Supports the CEO Water Mandate of the U.N. Global
Compact with the goal of working with key
stakeholders to develop sustainable strategies for
water usage.
• At production facilities, water is used several times and
recycle it. Water is currently recycled by various means
at 47 sites, these being responsible for 47% of the total
water used.
1.WATSAN Initiatives at Sun Pharma
• Creating infrastructure for augmenting rural water supply
• Access to potable water in rural schools
• Construction of good quality individual toilets in the villages
• Behavior change towards toilet usage through IEC activities
2. Across plant sites, Sun Pharma observes the
Swachhta Pakhwada (a two week initiative by
GoI) along with the host community, neighbouring
schools, government institutions and gram
panchayat to focus on the issues and practices
of Swachhta. It is an environmental awareness
campaign recommended under the National Swachh
Bharat Mission.
3. The Sujalam Sufalam Yojana of the Government of
Gujarat aims to deepen water bodies in the state before
monsoon to increase storage of rainwater that can be used
during times of scarcity.
Water supply infrastructure like submersibles,
piped distribution network, water storage
tanks etc are provisioned. Under sanitation, assistance
for constructing individual household
toilets is provided
 EDUCATION
1. Support for Children's Education - 7-Eleven’s Project A-
Game program to help kids develop their full potential by
funding education.

2. Establishment and Refinement of Training Systems - The

Seven and Seven & i Group engages in human resources development
I Holdings through training systems refined by Group companies to match
their respective business characteristics
3. CSR Education - In 2017, Chengdu Ito-Yokado established
an action plan related to CSR and moved toward
implementation.
Smith’s food and drug
• Raised funds for k-12 schools all over smiths operating
areas, provided scholarships based on need.
• Partnered with Martin Luther King Junior Day events and
awarded scholarships to youth based on merit.
.
Sinopharm
Green Office The Company not only grasps the
production, operation and economic benefits, but also
focuses on public welfare activities to return the
society. It has released and continuously improved
relevant policies in support for the public welfare
activities conducted by all the subsidiaries such as the
donation to the disaster area, voluntary diagnosis and
treatment, education support, and poverty relief, and
actively supervised and urged internal departments
and subsidiaries of the Company to fulfil the due social
responsibilities
 EDUCATION
BAYER AG
• Bayer Science & Education Foundation (focused on
leading-edge research, scientific education and talent
promotion)
• Hansen Family Award of the Bayer Science & Education
Foundation are pioneering achievements in basic
medical research that have the potential to improve
health care and the treatment of illnesses in the long
term.
• In addition, we have established the Bayer Thrombosis
Research Award to reward special achievements in that
field.
• Engages young school students with the
Science@School program of the Bayer Science &
Education Foundation, which supports teachers in
designing curricula in the scientific disciplines.
• In 2019, 22 projects in these disciplines received funding
through the Science@School program.
Model School Development Programme To improve quality of
learning environment in the government schools by upgrading
school infrastructure, promoting extracurricular activities
• Construction of boundary wall
• White washing the existing school building,
• Curriculum based wall paintings,
• Road safety awareness,
• Extra-curricular activities,
• Strengthening eco-club,
• Renovation of school toilets,
• Children Day celebration,
• Provision of drinking water,
• School annual day celebrations,
• Tree plantation programme,
• Science exhibition,
• Educational tour & knowledge fair for the rural students
Single Teacher Schools Programme at Ellapuram, Thiruvallur
District, Tamil Nadu wherein students are provided after school
coaching to enable them to cope with the demands of the
syllabus at school

• Fighting Youth Hunger: 7-
Eleven joined the Feeding
America network to buy
bananas for food-insecure
individuals and families in
the US
• Converting food waste
into feed and fertilizer in
recycling-oriented
agriculture
• Enable customers to
purchase products only in
the amounts they need
• Installing system to treat
garbage: reduction of
waste volume through
microbes
HUNGER & FOOD WASTE
• Donated meals in form of
food and cash by
partnering with various
organizations
• Tested programs to
expand Zero Hunger | Zero
Waste
• Food Rescue to include
additional items for higher
nutrition
- fresh, never-frozen
seafood
- select Deli fresh
prepared foods
- excess raw milk captured
for processing
• ‘Safe and Nutritious Food
at School’ to help school
children inculcate safe
eating habits
• Creating awareness
amongst school students
on nutrition, food safety
and food quality through
skits, interactive sessions
and distribution of
awareness material
• During the FY 18-19, an
investment of INR 2.35
million was made towards
this initiative benefiting
37,410 students
• Tackle food waste from
farm to fork
• Intend to have zero
wastage of food fit for
consumption
• Breakdown waste and ask
for supplier waste data to
identify hotspots
• Community food
connection, food
redistribution charity
• Community Chill: deploy
greater storage capacity
for lesser waste
• Innovate: gin from grape
waste
 Infrastructure
• Donations to help
local schools,
Swades Model Village Development
churches, non-profit Project
organizations (i) Livelihood,
• SALVATION ARMY (ii) Promoting good health,
(iii) Promoting better educational and
institutional facilities,
(iv) Water and Sanitation.
(v) People for Animals’

Smiths
SEVEN&i Bayer Sun
food and
Holdings AG Pharma
drug
(krogers)

Social Infrastructure Lifting the Base of the Pyramid

for ageing population- • €20 million promoting (women’s) health by
improving access to medical care,
• Seven RakuRaku Delivery
• digital platform myAgro, which enables
• Insurance Enrollment and
smallholders purchase of seed and fertilizer.
Premium Payment Service
• The NGO PATH uses money from the fund
Training Cognitive Impairment
to assist 50,000 households in southern
Supporters
Senegal in combating malaria.
 Sourcing and Packaging

7&I Holdings Smith’s Food

Tesco Bayer AG Sinopharm
Co and Drug
• Quality and • 21% eggs • Part of • Purchases • Increased the
Freshness through cage- Rainforest locally proportion of
Management: free hens alliance; wherever socially
Visit partners’ • Seafood collaborative possible responsible
farms and through approach • Supplier purchase in its
factories to sustainable towards supply Diversity operation each
ensure practices chain Program year
standards are • Reduced use • 100% • Classify • Contracts with
met of single use recyclable suppliers suppliers
• Provision of plastics; plans packaging by based on revamped to
Traceability to ban by 2025 2025 sustainability introduce
Information. • Multi-use bag and have socially
auditors responsible
• Simplistic
evaluate them. terms
innovations .
 Climate Action
7&I Holdings Co

01 ISO 4001 certification aimed to reduce its environmental

impact; 27% reduction target for CO2 emissions by 2030,
introducing energy saving equipment in its stores

Smith’s Food and Drug

Aim to phase out the use of single-use plastic bags by
2025, donation made for each reusable bag sold in its
store 02
Bayer AG

03 Absolute reduction in emissions till 2030, introduce an

internal CO2 price in investment projects, move towards
renewable energy by 2030, gain certifications

Sun Pharmaceuticals Ltd.

Roadside tree plantation, Distribution of saplings, Tree
plantation awareness, Celebration of Environment Day in
schools, Pond Deepening Project
04
 EMPLOYEE BENEFITS

SEVEN & I SMITHS SINOPHARM BAYER SUN PHARMA

• Reducing • Pursue • SA8000 • Robotic • Safety and
Overtime Education training Process skill
• Childcare and • Special programs Automation in upgradation
Family Care Scheme for • Anti- areas of training
Assistance veterans Corruption recruiting and • Employee
• Employee Practices training Engagement
Evaluation • Induction • Flexible two way
System courses for working hours communicatio
• Refinement of new and support in n platforms
Training employees childcare • Continuous
Systems Learning

• Seven Forest Creation
Conservation Project:
prevent global warming
promoting biodiversified
farming
• Green Wrapping: wrapping
ribbon with a leaf mascot for
a premium
• Sale of rice cultivated to
save environment – rice
field serves as wildlife
habitat
• Handling of low agri-
chemical products – 22.7
billion sales in 2018
• 7-Eleven expands
sustainably sourced coffee
with three Rainforest
Alliance Certified varieties
FOREST & AGRICULTURE
• Respecting and protecting
ecosystem, species and
genetic biodiversity
• further consolidate and
strategically
align our activities to protect
biodiversity
• R&D for improved
balance between
productivity and conserving
biodiversity
• Digital Farming: sustainable
use of resources
• High-quality seeds with
groundbreaking
traits that offer higher yields
and improved
weed control
• Greenbelt development
initiative: Help conserve the
environment but also
provides places for social
interaction
areas for the community.
• In 2018-19 the
Green Belt Development
Project commenced at
GIDC Panoli. More than
2600 forest plants were
planted and a garden was
developed on 600 square
metre of area.
• In Silvassa, Sun Pharma in
partnership with the local
government is developing a
children’s park
• Membership of Consumer
Goods Forum (CGF)- zero
net deforestation in sourcing
• Zero deforestation
statement of support for
Brazilian Cerrado for soy
• Palm Oil transparency
coalition: palm oil supply
chain understand globally
• Forest stewardship council,
programme for
endorsement of forest
certificate: source
wood/paper sustainably or
from a recycled source
• AGRICULTURE: key
sourcing regions water
stewardship, plant cover
crops (stabilize soil
structure)
 WASTE AND ENERGY
WASTE REDUCTION
SEVEN & I
• Reducing waste from products – reusable
containers and use of hangers
• Installing automatic PET bottle collection
machines
• Introduction of biomass materials
BAYER
• Disposal of obsolete inventories or waste
• Production specific recycling
• Recycling of packaging materials
SUN PHARMA
• SOPs to ensure efficient waste management
• Waste production minimized at source
• Well equipped solvent recovery systems
ENERGY
SEVEN & I
• Energy saving equipment at stores – solar
panels
• Stores with hydrogen stations
SINOPHARM
• Compliance with environment protection laws
• ISO 14001 Certifications
• Green Purchase and socially responsible
purchase
SUN PHARMA
• Use of energy efficient motors
• Usage of condensate water in boilers
• Motion sensors for air curtains
BAYER
• ISO 50001 for energy savings identification
• Factors associated with long term savings
 INSIGHTS
• On a whole Smiths food and drug as part of
krogers had a vision for sustainable
development, they initiated several community
benefits programs to benefit the local
community.
• Later they defined a set goals and refined their
targets to focus on specific targets through their
“zero hunger zero waste“ program. This mostly
focuses on reducing wastage, sourcing from
sustainable sources, food donation to the
needy.
• Aims to be a sincere business enterprise that earns the trust
of all stakeholders including customers, business partners,
shareholders, local communities, franchisees, and
employees.
• Its sustainable practises focuses on 5 material issues
Providing Social Infrastructure for an Aging Society and
Declining Population, Providing Safety and Reliability
through Products and Stores, Non-Wasteful Usage of
Products, Ingredients and Energy, Supporting the Active
Role of Women, Youth and Seniors across the Group and in
Society and Building an Ethical Society and Improving
Resource Sustainability Together with Customers and
Business Partners.
After going through the recently released 2019
Sustainability report and also the integrated reports
for 2018 and 2017 consisting detailed information on
Sustainability Management, it becomes clear that
Bayer AG is repositioning itself strategically in 2019
with only 10 years left to meet the sustainability
agenda set by the UN and global efforts falling short
currently. Out of the 17 SDGs, Bayer has a
significant impact on Zero Hunger, Good Health and
Well Being, Gender Equality, Climate Action and Life
on Land
 INSIGHTS
• Their multicultural workforce, encompasses over 30,000 team
members of more than 50 nationalities.
• Although the company incurred loss in the last five financial
years, it has spent more than the prescribed CSR budget in last
five financial years.
• The company has spent huge amounts like 3.94 Cr (2018-19),
2.70 Cr (2017-18) and 2.41 Cr (2016-17) for sustainability
initiatives.
• The company has undertaken various projects for promoting
Healthcare in areas of Punjab and disaster relief for flood
victims of Himachal Pradesh and Tamil Nadu. T
• hey have undertaken various activities such as installation of
solar lights, installation of traffic signal lights, construction of
community kitchen area in villages of Gujrat and Maharashtra
under their rural development programme.
• Their initiative in alignment with the flagship Scheme of
Gujarat Government, titled as “Sujalam Sufalam Yojana” which
focuses on water conservation during rainy season and
afforestation.
• Established an integrated industry chain developing related
segments such as distribution and delivery of pharmaceutical
and healthcare products, pharmaceutical and healthcare
product retail chain, pharmaceutical manufacturing, chemical
reagents, medical equipment and healthcare service with
synergy.
• Sinopharm Group strives to become a pharmaceutical and
healthcare service provider with international
competitiveness to constantly contribute to human health
and good life
• It has been Sinopharm Group’s persistent philosophy that an
enterprise, as a member of the society, should have frank
talks with its stakeholders to establish mutual reliable
relationships to satisfy their various needs in terms of
economy, environment and society, etc.
• All the sustainability initiatives have been instituted and
implemented in a holistic fashion, so as to exploit the synergies
between several stakeholders.
• All the initiatives have been formulated as simplistic interesting
innovations which elicit participation from the customers and
other stakeholders. The sustainability approach seems to be
idealistic, with local considerations and deploying the bigger-
view framework.
• Few systems approach initiatives were incorporated, but
majorly the inclination was towards transparency in reporting
and implementing sustainability initiatives.