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ESG Update

May 23, 2023

Operator

I would like to inform you that all participants are in listen-only mode during the call. After the presentation, there will be a question and answer session. You are invited to send in questions for this throughout the entire session using the Q&A functionality of Zoom. In addition to that, you may also raise your virtual hand to address your questions verbally. For participants joining via phone, to raise your hand, use star 9 on your phone's dial pad. When you then get selected to ask your questions, please follow the instructions from the phone and press star 6 to unmute yourself. During the Q&A session, we'll start a short feedback questionnaire. It will appear on the screens as a pop-up below and includes some single and multiple-choice questions. We would highly appreciate it if you could complete this survey.

One last remark: if you would like to follow the presented slides on your end as well, please feel free to go to roche.com/investors to download the presentation. At this time, it's my pleasure to introduce you to Bruno Eschli, Head of Investor Relations. Bruno, the stage is yours.

Bruno Eschli
Head of Investor Relations, Roche

Thanks, Henrik, and welcome to our second ESG IR event focused on environmental sustainability. This is actually a topic which has been with Roche since the seventies. We hope that together with our subject matter experts, we have put together an interesting event covering many different topics, showcasing what we have achieved already, but even more importantly, to what the future might bring and what our ambitions are. Let me quickly, on my first slide, take you through today's agenda. We will have an opening session, which you see here, which, why does ESG matter, will be held by our Chief Financial and Informatics Officer, Alan Hippe, who will touch on our motivations and also comment on the most recent changes when it comes to the sustainability governance framework.

For the second part, you see here, we have invited several of our subject matter experts, which will cover the topic of environmental sustainability through operational and product innovation. We have an introduction session here by Scott Hemphill, our Global Expert in Environmental Sustainability, who will summarize what we have already achieved, when it comes to reducing CO2 emissions and transitioning to sustainable energy mix. Also he will provide an outlook of what our ambitions are. The second slot goes to Georg Singewald, our Head of Global Manufacturing, Science, Technology, and Engineering, who will lead us through sustainable construction.

This is a topic which has been with us since 2016, and which has been of great significance, considering that we just have been redoing, to a large extent, our main site here in Basel, but also redoing our global manufacturing networks. Third is Ursina Kohler, our Head of Product Stewardship, who will highlight a few examples of how we have become more thoughtful in designing new products in the Pharmaceuticals and the Diagnostic divisions, and how we try to really minimize our environmental footprint when it comes to our products. This session then will be closed by Richard Huerzeler, our Chief Environment and Remediation Officer, who's with us today, who will touch on improvements made with water and waste management. He will also cover our remediation efforts for historic production sites, which we take very serious.

The third part of the day then for this ESG event will be held by Marielle Beyer, our Head of Global Procurement. Marielle will touch on the increasingly important topic of environmental sustainability in the supply chain. This is a journey which just has started, and I think where there's still a lot of work ahead of us. Following the presentation, we will have 30 minutes of Q&A where we will ask all the speakers on stage, and I'm looking forward to a lively discussion. Let me make a final comment here. Looking at the presentations, I think, really looking at the totality of our efforts around the world, I think it's noteworthy that many environmental improvements which we have achieved, they are due to adopting new technologies and being really thoughtful before doing new investments.

I think it's also important to point out, similarly as with our last year's event with access to healthcare, that environmental sustainability really needs to be an integral part of our business model so that we can continue our 127 years as a success story as a company. Going to the next slide. I just wanted to have a quick advertising here for our IR homepage. We have added here a box. I think for the people who are interested in ESG topic, please visit our IR homepage. You will find there in the segment an easy-to-navigate setup where you'll find important links, performance sheet, latest position papers, or communicated targets.

Actually with that, I would like to hand over to Alan Hippe for his opening remarks. Alan, please.

Alan Hippe
CFO and CIO, Roche

Yeah. Thanks, Bruno. Thanks for joining. It's an amazing topic, and I think, Bruno, you framed it well. I think it is in our DNA. I think really that we work on sustainability is that in the heart, and I will also make a comment how long we have, in fact, a subgroup of the board dealing with sustainability in our company. We have a long tradition here. Let me add to this that, especially when it comes to environmental sustainability, we have a long tradition. We've broadened that end a little bit, but this is basically where our origin is. We will have a great session today. Will be really fun. We will have lots of examples. That's what I love about the session today. I think we will make it really, really tangible.

On one hand, it's the concept. On the other hand, I think we have the tangible stuff we will go through with you. I would like to thank all the presenters and certainly the IR team for preparing it so diligently today. It is really my pleasure to set the stage for some great presenters, really superstars in our company, Scott, George, Ursina, Richard, and Marielle, I think they will tell you what we're doing in the area of environmental sustainability, and I hope you will join our fascination for the topic. Good. With that, let me dig into the topic. First, there's always the question: what is sustainability all about? In a lot of investor meetings, I get the question about the environmental sustainability we deal with today.

We know that we make a real difference in the world by access to patients, you know. That's basically what you told us when we made a survey among investors, what they think are the most relevant ESG topics for a healthcare company. You see really by far, it's access to healthcare and its pricing, which is certainly interlinked. We touched on that topic in 2022. 2023, we went for the next bucket, if you like, and that's today. This bucket is really about governance, environment and supply chain impact and environment and supply chain impact, we have a longer session on. On governance, I will touch upon that.

You see really we go systematically through this, and I think your feedback that came out of the market is definitely what we think internally as well. Can we be more specific here? Yes, we will be. We will be more specific, and we will work on that. I, as I've said, I think we have made major strides already. When you look really what sustainability means for Roche, let me lead you through this. We divide it by society, economy, and then environment. Let me start with society. You see develop new medicines, diagnostics, and integrated health solutions that address the needs of diverse patient communities, so clear topic of access. Increase access to our innovations asset globally, which I think is important with local communities in mind.

I think that reflects really on the diversity in the patient groups we deal with. Care for our employees is clear by prioritizing safety and health, promoting diversity, inclusion, and equal opportunities. In economy, while invest in innovation is clear, provide secure jobs with adequate social benefits globally. I think we do this. Contribute to over 100 local economies, and really we do that by far. Topic of today's environment. Environmental sustainability, and you see really here on the left-hand side of the slide, what this is all about for us. We wanna halve the environmental impact of our operation and products from 2019 to 2029, which I think is quite an ambitious target, and you will learn about that how we wanna do this.

Reduce greenhouse gas emissions to net zero no later than 2050. Let me add here for Scope 1 and Scope 2, it's about absolute zero. I think that's clear. Scope 3 is a little bit different. Marielle will touch upon that, yeah, because this is something we have, at least for today, a more limited hand on. Very clearly for Scope 1 and Scope 2, we go for absolute zero until 2050. Partner with suppliers to reduce their greenhouse gas emissions, which goes without saying. Let me get to where we are. We monitor the situation in these three areas, we even provide figures in our annual report, these figures are even audited. That's what I can say. We have implemented this measure already.

To see where we are, I think when you look at 2022 from a societal point of view, I think 40 million patients treated, 29 billion tests conducted in Diagnostics, which is an enormous number, which is certainly lifted by the pandemic, I think, very clearly. Nevertheless, I think it's amazing to see the sheer number and the sheer volume. 87 new molecular entities in clinical development. Lots of questions at the moment about our pipeline, but 87 new molecular entities is enormous. That's what I can say in our industry, and that certainly speaks for the sustainability that we provide from a pipeline point of view as well. 37% female executives, I think can be higher. We work on this as we move forward. You see environment.

Environment, 32% decrease in environmental impact per employee since 2019. You will learn more about this on our tradition, yeah, and that we have amazing strides and amazing performance and amazing contributions in that area. 81% sustainable electricity, which I think is quite an impressive number as well. 29% decrease in greenhouse gas emissions since 2019. I can say with conviction today, it's a much higher percentage rate when you look longer term, you know, beyond 2000. That will happen today. Economy, 22% of sales invested in R&D. We employ 103,000 employees. Let me also say, when you look at the contract and supplier base, certainly this is a much larger number that we impact in the world. Good.

Let me talk about governance, because this is one of the topics today, we have also made progress here as well. Governance for sustainability in Roche, as you heard from Bruno already, is existing for quite a period. Roche has had a Corporate Governance and Sustainability Committee, so really a subgroup of the board of directors for 23 years. I think really we have been really a front runner, you know, at that time when nobody really thought about sustainability in a broader sense, especially for companies. I think we made a major difference here. Very clearly, I think we have to progress. To support this, I think really you see the structure here, Sustainability Steering Committee.

There will be a chief sustainability officer who is reporting into the head of strategy and sustainability. That's a new position of our executive committee for covered by Silke Hörnstein. Very clearly here, it's about setting the sustainability strategy and certainly monitoring its implementation. Then you see a couple of subcommittees that we have which have more operational tasks. You might say, "Oh, that's a lot of committees you're having." Yeah. Is that not it very well? I think it is in our DNA, and really sustainability is delivered by our business. What we wanna make sure is if you really bring it together well, you know, that we monitor it well, that we can do really the adequate reporting and the adequate can adequately address, you know, these topics with you.

As I said, I think there's a lot of activity going on in the company already, and the driver is the business. On the right-hand side of that slide, you see our 2023 aspirations. We would like to further embed sustainability in our business strategy under the new Chief Sustainability Officer. We can be more pronounced in what we're doing. So that's fair. We will prioritize resource allocation to favor long-term sustainability goals. That's something we have to push further. What is it really we're hunting for and when do we wanna achieve that, and what do we wanna invest in line with that? That always embedded in our business ambitions, which I think is key.

Refine and further develop internal and external reporting and the reporting strategy, which is clear with a lot of regulation coming, and certainly we have to face that, and we'll do that in a great fashion. I'm very convinced about. A fascinating topic, and it is now my pleasure to hand over to one of the source in that area to Scott. Scott, please.

Scott Hemphill
Global Expert in Environmental Sustainability, Roche

Thanks. Thank you very much, Alan. Good afternoon, everybody. My name is Scott Hemphill. I work as an environmental sustainability expert in Roche headquarters here in Basel. Today I'm going to talk to you about our carbon emission strategy and performance over the last couple of years and the future of our energy supply. Before I do that, I'd like to briefly introduce you to our Eco-Balance calculation methodology, which is how we summarize our entire environmental footprint at Roche into a single key performance indicator. The methodology is based on the Ecological Scarcity Method methodology from the Swiss Federal Office for the Environment, it allows us to holistically consolidate the use of resources, the generation of waste, and the use of our emissions in a holistic way.

As Alan mentioned before, Roche has set the ambitious target to reduce our environmental footprint by 50% between 2019 and 2029. The Eco-Balance calculation is how we measure performance against that target. Everybody at Roche can contribute to this target to reduce our environmental impact, which is why the Eco-Balance calculation is a part of our annual bonus calculation. When we look at the individual components of the Eco-Balance calculation, energy consumption and the associated greenhouse gas emissions are by far the largest fraction of our total environmental footprint. Looking specifically at greenhouse gas emissions at Roche, we report these according to the International Greenhouse Gas Protocol standard, which divides greenhouse gas emissions into 3 distinct scopes. Scope 1 greenhouse gas emissions concern the combustion of fuel and the resulting CO2 emissions from our production facilities and our vehicle fleet.

These are the direct emissions of CO2. For indirect emissions associated with the production of electricity used on our facilities, these are called Scope 2 greenhouse gas emissions. The Scope 3 greenhouse gas emissions, which is what Marielle will talk to us about today, concern the indirect greenhouse gas emissions in our upstream and our downstream supply chain. These concern things like purchased goods and services that we use at our facilities around the world or in our downstream supply chain, the distribution use and end of life of our products. You can see from the figures on the screen here that our direct operations make up roughly 7% of our total greenhouse gas emissions, compared to the large amount in our up and downstream supply chain in Scope 3. We really want to play our part in mitigating climate change at Roche.

We wanna also motivate our supply chain partners to join us on the journey to zero CO2 emissions. We are very cognizant that the Scope 1 and 2 greenhouse gas emissions from our operations also contribute to the Scope 3 greenhouse gas emissions of our customers. We've set, as Alan mentioned, a very ambitious target to reduce our Scope 1 and 2 greenhouse gas emissions to absolute zero by 2050, and this is without carbon offsets or compensation mechanisms. It's an absolute zero. You can see on the screen here some of the milestones on the pathway to zero Scope 1 and 2 greenhouse gas emissions. In 2020, we established CO2 roadmaps at our production facilities so that they could map out their pathway to zero CO2 emissions. We set interim targets.

In 2025, we want to reduce our greenhouse gas emissions, Scope 1 and 2, by 40% compared to 2020, and we want to supply our sites with 100% sustainable electricity by 2025. In 2029, at the end of our 10-year goal period, we want to have reduced our Scope 1 and 2 greenhouse gas emissions by 75% compared to 2020. By 2030, we want to have a 0 emission vehicle fleet. Looking at how we will achieve this, we follow the carbon management hierarchy, which basically concentrates firstly on looking at the carbon-intensive activities that we have and to avoid those carbon-intensive energies. This could involve the use of different technologies or different ways of doing business.

What cannot be avoided, we need to reduce through constant optimizations of our facilities around the world, continuous improvement in reducing energy consumption and consequent CO2 emissions. Finally, those types of energies that we cannot avoid or reduce, we need to substitute with sustainable energy sources. Many other companies will resort to offsetting programs to try and compensate for those greenhouse gas emissions that can't be avoided, reduced, or substituted. This is not our program for the CO2 roadmap for Scope 1 and 2. We really want to achieve 100% zero CO2 emissions for Scope 1 and 2 by 2050. Looking at our performance over the last 20 years, we've come a long way since 2004, for example.

As Alan mentioned, about 20 years ago, we implemented our sustainability committee, and you can see definitely this has contributed significantly to our progress here. While you see the global greenhouse gas emissions in the red line increasing between 2024 and the present day, Roche has managed to reduce the Scope 1 and 2 greenhouse gas emissions per person by 73%. One of the major contributing factors to this performance was the introduction in 2006 of our energy conservation directive, which basically sets minimum energy standards for building refurbishments, for new constructions, and for our vehicle fleet, among others.

You can see our pathway to 2050 will be challenging, and the last couple of tons of greenhouse gas emissions will be probably the toughest to remove from our operations, which is why we'll be dependent on new technologies and new ways of doing business. Nevertheless, we're convinced we're on the right pathway forward. Looking in a little bit more detail at our energy mix, we have made significant progress over the last 20 years to reduce our dependency on fossil fuels. We've reduced our consumption of natural gas by a third, and we've practically eliminated the use of fuel oil and confined it to a mere 17% and increased our share of sustainable electricity to 2022. Looking ahead of us is roughly 50% of our energy consumption still originates from non-sustainable sources.

Europe will need to further eliminate the use of natural gas and in the other geographies around the world to increase our share of sustainable electricity supply. In all geographies, we need to work hard towards a zero-emitting vehicle fleet. Focusing specifically on sustainable electricity, we've made significant progress over the last years to increase our percentage to 81% on the path to 100% sustainable electricity by 2025. Two of the very many examples around the Roche world include the U.S. site, Pleasanton in California, which recently increased their sustainable electricity supply to 100%, and our Chugai partners in Japan recently increased their share of sustainable electricity to 87%. We also strongly encourage our sites to produce their own sustainable electricity on-site through photovoltaic solar arrays.

Practically all of our facilities in North America and in Europe have solar systems set up on their roofs to generate sustainable electricity. One of the most prominent in Switzerland is in the Kaiseraugst facility. It's actually a highlight on the A-two freeway between Basel and Zurich, where you can see the solar facade on the side of this parking garage takes up a lot of space. It was one of the biggest at the time in Switzerland. The whole park garage solar system generates the equivalent of 100 electricity for 100 individual Swiss family homes. We don't just install photovoltaic systems in North America and Europe, but also outside in other geographies. Recently, we installed a 1-megawatt system in our Shanghai facility in China.

Looking more broadly at other CO2 saving projects that have been implemented recently, a new building recently commissioned in Oceanside in Southern California is 30% more economically and energy efficient than conventional buildings in the area. In Branchburg, we're installing our first US geothermal system, which will be one of the steps towards zero CO2 free production. Concepts developed in Basel, such as low-temperature heating systems, heat pumps running on sustainable electricity, and continuous optimizations of air handling units are now being applied at our Penzberg facility in Germany to help them reduce their greenhouse gas emissions further. The Meylan facility in France and the Sant Cugat facility in Spain are two of our first facilities that are truly CO2-free. A recent research building that was commissioned in South San Francisco is 100% electric.

It's one of the first in Northern California to operate on 100% sustainable electricity and is practically CO2-free in its operation. Returning back to Kaiseraugst in Switzerland, we also recently installed a very innovative wood-fired heating plant there to generate process steam from forestry waste from local forests. This saves the site around 5,000 tons of CO2 emissions per year. In summary, energy and the associated greenhouse gas emissions are the largest component of our Eco-Balance calculation, which is how we summarize the environmental footprint of Roche's activities into a single KPI.

While the Scope 1 and 2 greenhouse gas emissions appear low compared to our Scope 3 greenhouse gas emissions, we do want to play a role in leading by example and encouraging our value chain partners to join us on the journey to zero CO2 emissions and to also help our customers reduce their CO2 emissions. We follow the carbon hierarchy to firstly avoid high energy intensive utilities and then reduce the energy as much as possible before substituting it for sustainable energy sources. We've come a long way. In the last 20 years, we removed, reduced our CO2 emission Scope 1 and 2 per employee by 73% since 2004, and we've set ambitious targets for the future.

We want to completely eliminate Scope 1 and Scope 2 greenhouse gas emissions by 2050 as an absolute zero without carbon offsets or compensation mechanisms. We're working really hard towards our 100% sustainable electricity supply by 2025. With that, I'd like to thank you very much for your attention. I'm going to hand over to Georg, who will take us through our sustainable construction program. Thank you.

Georg Singewald
Head of Global Manufacturing Science, Technology, and Engineering, Roche

My name is Georg Singewald. I'm Head of Manufacturing, Science, Technology and Engineering in Pharma Technical Operations. I want to highlight to you today why sustainable construction matters to us. With our developed sustainable construction approach, we are gaining improved reputation and higher property value, combined with a lower cost of ownership, mainly for maintenance and throughout the life science cycle of our buildings. Higher business resilience is also ensured due to environmental resource needs that are much lower, and we are also having a less volatility when it comes to the availability of supplies and materials during construction. With the fast changing environment regulatory-wise in this space of sustainability, we also see a higher likelihood of our buildings to be long-term regulatory compliant. We have proven and externally benchmarked higher workplace productivity within those buildings as well.

For example, with features of temperature stratification, emphasis on acoustics or also especially the air quality, which I will refer to later on again. We are achieving those outcomes not only during construction, but along the entire life cycle of a building. That's something that starts already with the exploration of raw materials, goes throughout the construction and use of the building all the way to demolition as well as recycling. For this, we build our own framework that is addressing all the elements of sustainability, society, environment and economy with a systematic approach of more than 100 criteria that have been defined and which we are applying during the construction of the building, but also throughout the entire life cycle. We are keeping us accountable for those with a tool that we are using and that we are measuring against.

Let me share what an output of such a sustainable construction approach can look like. I want to start with our Building 2, Roche Building 2 tower in Basel at the headquarters. That is a building with an energy demand that is unbelievably low. I will show you some benchmark data in a minute. How have we achieved such an energy efficiency in this building? First of all, we use tools to optimize our building facade to reduce the energy demand. We also are using heating with site waste heat and cooling with groundwater along the principles of high temperature heating, high temperature cooling and low temperature heating. Obviously with that balance also throughout the year, temperature swings that we see and making sure that we're not giving back too much energy and temperature to the environment.

That we obviously do with active heat recovery systems and also by utilizing the daylight in the building, in the office building to the maximum. There are other smart solutions within that building as well that I want to mention, and one is, for example, that we're not using any halogenated hydrocarbons as refrigerants. Within Roche we are eliminating those so-called HFCs that have a high potential when it comes to the ozone layer depletion, for example. We are eliminating those since many years in our manufacturing environment and in all of our buildings. No new building has those HFCs included. We are also using renewable or low carbon building materials, for example, wood or also a low- CO2 cement during building.

Thinking about the later part of a life cycle of a building, the demolition and the recycling, we already starting in the construction to digitize our components, the amounts and where they are located in the building in order to later on use those materials again and make them available for construction projects either within our own environment or also within the region. Benchmarking the Roche Tower Building two with the best-class high-rise buildings in Europe reveals that the energy demand of building two as well as of building one that has been built a few years earlier following the same approach, is significantly lower.

With an achieved energy consumption of 50 to 70 kilowatt hours per square meter per year, both buildings are exceeding our expectation and stand out compared to the benchmark. Just to give you in a comparison, the energy demand per square meter of Building Two equals an annual consumption of an LED bulb that all of us have at home, and if it's running 12 hours per day, the entire year. Just comparing that, for example, with the energy amount of the Christmas lighting at the end of the year that we are seeing in some cities and so on, it's really a remarkable benchmark.

I mentioned the air quality before. It's really important to highlight we have more than 3,500 employees and colleagues working within Building Two, and any furniture, any carpet, any material that we use for construction has its own emissions. We have been very thoughtful how to select those materials and even did our own quality control testing for more than 900 components to understand the emissions better before usage. What you can see on the graph is that with this approach, we achieved very low, far below any recommended levels when it comes to emissions in the building. In this case, measured with the level of total volatile organic compounds and also formaldehyde.

We are not only using the sustainable construction approach in office buildings, we also started to apply this approach in our manufacturing network very recently, for example, in the Clinical Manufacturing and Supply Center in South San Francisco. We merged the approach we are using for the shell also for our manufacturing assets and combining it with our improvements when it comes to manufacturing on this basis of sustainability. With this, we created an environment and a factory of the future that shows really favorable results when it comes to sustainability parameters. Is it water consumption, energy consumption or chemical waste? With an overall favorable carbon footprint at about 20% compared to comparable facilities in the US.

What I want to highlight is that this sustainable construction approach also allows us to build a platform for other facilities, doing that not only in a greenfield setting, meaning not only for new buildings that we are building, but also in the brownfield setting, even the current facilities that we have that we can update and where we can learn from this approach. With that, getting more adaptive also to our needs from the pipeline, from the research and development colleagues when it comes to transferring products or bringing them to patients faster and reducing also the cost per production run in the range of 50% and having faster transfers in the range of two months.

To summarize, I wanna highlight that we are working on our sustainable construction approach since about 2014, '15, and we really see it as a novel approach to building. With the examples of Building Two and the Clinical Supply Center in South San Francisco, we are able to really build state-of-the-art sustainable buildings that is going far beyond the environmental impact of the sustainable dimensions, but also society and economy. We are applying these principles and our tool and the methodology overall in current developments and aiming to address additional opportunities as we are working on our building portfolio and further future constructions. Again, brownfield as well as greenfield. With this sustainable construction is for us a competitive differentiator and helps us to generate long-term value. Thank you very much, and I'm handing over to Ursina.

Ursina Kohler
Head of Product Stewardship, Roche

Thank you very much, Georg. In the next 10 minutes, I'd like to talk to you about Roche's product stewardship program and how we embed sustainability in our products. My name is Ursina Kohler, and I'm responsible for product stewardship at Roche Diagnostics. As you have heard before in a sustainable construction section that Georg just presented, it is really important that we address sustainability challenges in a systematic way. For our products, the way we do that is by using a framework that we call the product stewardship cycle. As you can see, the product stewardship cycle covers each life cycle stage of a product and ensures that we consider each life cycle stage as we develop new products. That starts with choosing the right chemicals, so choosing less toxic chemicals wherever possible. I'll talk about this a little bit later on.

We, when we discuss or develop a new product, already discuss manufacturing and how we can reduce energy use or water use during manufacturing. How we can do our logistics or supply chain and our packaging to reduce our environmental impact. For Diagnostics, the use phase is really important because our instruments are using a lot of electricity and creating liquid waste or solid waste. We want to make sure we discuss that at the beginning when we develop a new product. The most important phase or more and more important towards the end of life of our products, we want to make sure that we don't just waste our instruments, our reagent cassettes, our products, but we focus on a circularity strategy, and that we reuse and recycle as much as possible.

The key drivers for an effective product stewardship framework is first to understand the external world. That's the voice of the customer. That can be the expectations from our customers for more sustainable products. That can also be the policy environment. For example, the EU Green Deal. As it takes many years to develop a new product, we want to make sure we understand the sustainability challenges today, but also those challenges of the future, so whatever product we put out there is sustainable in 10 years, in 15 years. The next really important stage is the product and process development, because a lot of the things that come later are defined here.

When we develop a new product, we wanna make sure, as I said before, to consider manufacturing, to consider packaging, logistics, and more and more, we also need to ensure that the communication with our stakeholders or transparent communication with our stakeholders is followed. For product usage, this communication is important as well because we want to make sure our customers, our patients understand how they can efficiently reduce the waste at their sites. The circularity concept is something that is really challenging, but that is something that is high on our agenda. I'd like to share a few examples with you now where we use those product stewardship principles and created or developed product that are reducing the environmental impact. The first example I'd like to share with you is Actemra.

Actemra is a drug that treats rheumatoid arthritis. Some of you might have heard about it because it was also approved to treat COVID-related side effects. In the last year, there was a big increase of the use of Actemra. We realized that we have to do something to address the waste or reduce the waste of Actemra. Actemra is used both at hospitals, also at home for patients at home in prefilled syringes. For reducing the waste at hospitals, we started a project. The outcome of that project was to extend the in-use time for Actemra in a sterile concentrate in IV bags. By extending the in-use time, hospital staff were able to prepare the bags or reduce the waste of the bags if a patient maybe couldn't make it to the hospital or came in late.

Especially in the last few years, that was really important. Extending the in-use time not just reduced the waste from the product, from the IV bags, but it also enhanced the satisfactions of the hospital staff. For at home use, we wanted to do something similar. The project we started there was focused on the improved storage of Actemra, of those prefilled syringes. With the new prefilled syringe, we can now store, or patients can now store these syringes at up to 2 weeks at less than 30 degrees Celsius, so room temperatures, instead of having to refrigerate those prefilled syringes. As you can imagine, this is an increase in flexibility and increase in patient satisfaction. As they would travel or go about their normal day, they didn't have to find a refrigerator. Again, this reduced weightage of...

wastage of the product and the plastic from the syringes dramatically. Our next 2 examples are from the Diagnostics division, the first one is focused on our high-throughput blood banks. High-throughput blood banks are using hundreds of assays a day. In this example, you can see the Elecsys Syphilis assay. We decided to reduce the waste by moving from single packs to multi-packs. Far, we have been shipping single packs to these customers, and because they're repeating the same assay again and again, they didn't use the calibrators that were supplied to them because you don't have to recalibrate your instrument if you do the same assay. Now moving to multi-packs. First, there are 6,000 tests in 2 calibrators.

We're not just removing the packaging, the waste from the packaging, but we're also removing the waste from the calibrators with this solution. You can see on this slide how drastic the reduction is of waste. We have 23% less paper. We have over 90% less waste from plastics, from mixed materials, from glass. Overall, 60% less solid waste. What is also important is that we need less storage for those multi-pack boxes. One thing that I didn't mention before is the unpacking of the boxes that for each single pack obviously takes resources, and with the multi-pack are reduced. The work force needed for that is reduced.

This solution is going to be launched end of this year. We are looking forward to seeing those reductions and the minimization of the impact on our environment with this. Now, the second example is from our serum work area in Roche Diagnostics. The cobas e-pack green and cobas c-pack green reagent carriers are a more sustainable version of carriers that we had previously. When our researchers develop a new product or a new reagent and reagent carrier, they focus on 3 things. First, the reduction of the material used for the packaging, and that's often plastics. The second is to put more tests in a reagent cassette. The third is to reduce the volume that is needed for each test. The numbers that you see here show the success of these solutions.

Up to 78% less solid waste from cobas e-pack green, up to 43% less sample volume needed with a cobas c 503 analytical unit, up to 36% less water use with the cobas 8000. I talked a little bit before about the product stewardship life cycle stages and the in-use phase for Roche Diagnostics instruments. The water use is something that, as we developed a new product, has an output in the in-use phase. Again, it shows the product stewardship principles that we applied as we developed these products. We also calculated their CO₂ emission, the reduction is great. We have up to 260,000 metric tons of CO₂ emission reduction by 2030 because we are calculating that we are going to replace our older generation instruments and solutions with more sustainable solutions.

When I started talking about the product stewardship cycle, I mentioned that we want to reduce the use of toxic chemicals. I want to make sure that I talk about Roche's commitment to phase out Substances of Very High Concern. Substances of Very High Concern, or SVHC as we call them, are substances that are highly toxic. They could be carcinogens, reprotoxic substances, or substances that are persistent in the environment. We decided in 2015 that we want to reduce and phase out those SVHCs in our product wherever we use them. We also embedded this in our 2025 sustainable goals. Today, I can say that we are well on track with this. Two examples are listed here. We have more. We phased out boric acid, and we phased out mercury, both substances that are reprotoxic.

For the future, we want to continue to phase out the substances wherever we use them today, but even more importantly, we're working on further embedding product stewardship principles in our new product development process, so we don't even start using those substances from the beginning. Thinking ahead when we produce and develop a new product. To summarize, product stewardship means to minimize the impact on the environment and on humans. It's really important to address this systematically in our product. Product stewardship must be an integral part of product development and life cycle management. We strive to deliver sustainable products, circular solutions by redesigning and reducing packaging, also by improving product usability and enhancing patient and customer experience.

We're also working on take-back programs for our reagent cassettes and other products. We want to make sure that we are using and re-reducing the use of toxic chemicals as much as possible. Overall, this is our way of contributing to the 2029 ambition to reduce the environmental impact by 50%. Thank you very much. With this, I'm going to hand over to Richard Huerzeler.

Richard Huerzeler
Chief Environment and Remediation Officer, Roche

Thank you, Ursina. Hello, everybody. My name is Richard Huerzeler. I am the Roche Chief Environment and Remediation Officer. I'm part of the Group Safety, Security, Health and Environment department. I would like to share some success story with you today about waste, about water, and also about environmental remediation. You have heard a lot today already on our Scope 1 and 2 emissions on decarbonization overall and on our roadmaps. I would like now to introduce you to three other important areas of environmental sustainability, namely water, waste, and environmental remediation. Water is really an important resource for us. It goes into our, as raw materials, into our products. It is used for heating, cooling, but also for irrigation. Access to high quality water is really paramount for our company to maintain business continuity.

This is also the reason why we develop water avoidance, water reduction strategies and implement them successfully throughout the company. Waste management is expensive and also binds a lot of resources. The best waste is the waste that is not at all created. While we often go above the legal compliance requirements, we strive mostly for avoidance of waste. The waste which we cannot avoid is actually reduced or reused or recycled, going down the circularity route. Environmental remediation is a big topic for us as well. We have created environmental provisions to tackle environmental liabilities from the past, created by our operations, but also by acquisitions. It is important to spend this money wisely, but even as important it is to avoid creating new liabilities. Let me jump into the water topic right now.

In 2022, last year, our company withdrew some 14.9 million cubic meters of water from the grid. 2.9 million cubic meters were used in our operations or consumed, went into our products or were used for heating and cooling. For these 2.9 million cubic meters, we use a risk-based approach. We created a metric, which is called risk-weighted water consumption intensity. It is calculated by cubic meters per full-time employee, and it reflects the water risk throughout the globe. One cubic meter used in an area that is prone to water scarcity counts more for us than one cubic meter, which is used in an area with relative water abundance. If you look at the chart, our starting value was 75.9 cubic meters per FTE in 2020.

Our aim is to reduce this by at least 15% to until 2025. If you again, look at the chart, 2021 and 2022 figures were promising. Also our current forecast, those are the light blue bars, also shows great progress towards this goal. How are we dealing with this topic? We are actually sharing experience in communities of practice. We are working with peer companies, organizations, or consultants to implement clever and smart solutions throughout our company. I brought you an example to show how this is actually worked on in our sites. There is an example from a site in California, where we use cooling towers. Cooling tower water is normally prone to so-called fouling, which is bio-biological contamination by algae, and then the water cannot be used anymore.

What is normally done, we use chemicals to treat this water and to make it usable for cooling purpose again. In this particular manufacturing site, we now use a dynamic filtering system, which is a biofilter using additional filters, where the cooling tower water is circulated without using any chemicals. You can see there is quite some success in that. Only in this single site, we have an annual water saving of 3,700 cubic meters, a saving of $40,000 by not using chemicals anymore. That is almost 20 tons of chemicals that is not discharged into fresh water, and also this avoids the risk of handling chemicals for the site at all. You can see with relatively small but clever solutions, you can reach a lot of output. Let me jump to the water topic right now.

We apply our waste management hierarchy when dealing with waste. On top of this inverted pyramid, we have avoidance. As I already said, we want to avoid waste by all means. We don't need the resources and the money to treat them. However, it's not possible to avoid all waste, as we know. The next level would be reduction or also circularity approaches like reuse and recycling of waste. You can see to the left and right of this pyramid, you can see a couple of waste that we can reuse and recycle. Unfortunately, those are not all, and this is not an exhaustive list, but that gives you an example what which waste we can reuse or recycle. The next level would be the incineration. We sometimes have to thermally treat waste to render them inactive.

For example, solvents or medical and biological waste would be subject to thermal treatment or incineration. Still, we need landfills, but only for inert non-active materials, like for example, ashes and slags from incineration, but also for contaminated soil or construction waste. We have a couple of high-level goals in the company for the 5-year period of 2020 to 2025, and they focus along non-hazardous, or as we call them, general waste. The first goal is to reduce by another 10% the overall general waste in the company. The second goal is to increase the fraction of general waste recycled by over 80%. The third goal is a reduction of 10% of all plastic wastes generated in our operations. 2 years into our, into this goal cycle, we are making good progress and we are optimistic for the future.

I brought you an example for waste management, this is about hazardous waste going to landfill. A couple of years ago, we realized we had quite a considerable amount of hazardous waste going to landfill. Why is this an issue for us? Hazardous waste in landfills can react with other wastes, can create environmental risks and issues like water contamination or even risks to humans. It was paramount for us to develop actions to reduce this hazardous waste going to landfill. We did this by launching activities and action programs, talking to each other on the sites and exchanging best practice. As you can see, we were quite successful with that. We reduced hazardous waste to landfill by some 85% by 2022. It is now below 50 tons, which we think is quite a success.

We really want to keep it that low or even go lower, if possible, to avoid creating environmental risks in the future. Environmental liabilities are a reality also for Roche. We have created environmental provisions to tackle those environmental liabilities. Waste practices in the past, unfortunately, were not that developed, Roche also has some environmental liabilities in its portfolios. Let me share a success story, a real environmental sustainability lighthouse project, the remediation of the Kesslergrube landfill in Grenzach-Wyhlen in Germany, very close to headquarters. In the last eight years, we have completed this remediation, and you can see there's quite a large activity on the border of the River Rhine.

There is a surface of 12,000 square meters that had to be treated. An excavation volume of some 360,000 tons of hazardous and non-hazardous waste soil, which had to be excavated. We spent some EUR 239 million for this. It was important while spending this to really apply green remediation technologies and to be as sustainable as ever possible. For example, we use the sound insulated and airtight enclosures. This is the large hall that you can see on the picture above. We also applied very sustainable treatment technologies. Also transport, namely not using truck transport, road transport, but rather ship and train transports. We use multi-stage groundwater and exhaust air treatment systems, rendering the site non-hazardous to the environment again. We are done since last year.

The site is free of any contamination. We are looking into a commercial operation again in 2025. You can really turn a risk or an issue into an opportunity. We would rather not go down that route, but really avoid creating new environmental liabilities in the future. Let me summarize my presentation with this slide and come back to the concept of the Eco-Balance as it has been explained by my colleague Scott before. You can see again, the most important constituents that are used to calculate our overall Roche Eco-Balance, which is emissions to air, energy consumptions, emissions to water consumption in general, noise pollution, but also water management. We have very active and very aggressive goals even when it comes to Eco-Balance.

From 2019 to 2029, we would like to reduce our Eco-Balance by 50%. Where are we right now? In 2022, we have already reached a reduction of 32% from these 50%. This is not the end, however. We have a couple of activities that still have to be implemented. Namely, we want to overall reduce our Scope 1 and 2 greenhouse gas emissions by 75% until 2029. Another pillar is also to supply our operations by 100% sustainable electricity by 2025, and also to be 100% zero emission car fleet by 2030. Another important activities are focused on Scope 3 areas which will be treated in the next presentation. Overall, and above the Eco-Balance, we also use other metrics, and I brought to you some example or one example on biodiversity.

We are creating a biodiversity strategy currently, which will not only help us to comply with the legal framework, for example, the Nagoya Protocol, but also the EU Green Deal, but will also help us to really create a net positive impact to nature. Thank you very much for your attention. I would like to hand over to my colleague, Marielle.

Marielle Beyer
Head of Global Procurement, Roche

Thank you, Richard. Good afternoon. I'm Marielle Beyer, and I'm the Head of Global Procurement here at Roche. During the next 15-20 minutes, I would like to expand on the following. 1, the role of procurement in driving environmental sustainability, and in particular, carbon reduction initiatives. 2, I would like to share something about our start journey for into carbon reduction under the Science Based Targets initiative. I would like to show some very tangible examples of already delivered carbon reduction. Finally, I would like to talk to you about a couple of collective actions that we have recently joined in order to amplify our impact in the area of environmental sustainability, in particular, in collaboration with our suppliers.

Procurement is uniquely positioned to accelerate the progress of Roche's ESG goals, in particular in the area of environmental environmental sustainability. That is because we're in a sense, the extended arm of the organization into the supply market. This is where we lie our specific focus. We partner with Group SSHI on their successful real zero carbon reduction for Scope 1, and we also enable the business to make educated, environmental, sustainable buying decisions. Finally, we coordinate and drive net zero carbon reductions for Scope 3 with our suppliers and the supply chain. We do this because we see the increasing regulatory requirements coming our way, because we see the increase in customer requirements coming our way.

This is a good segue into this next slide, because 93% of our total CO2 emissions are attributed to our value chain. Of those, 81% are directly attributed to purchased goods and services, as well as capital goods. Now, you learned earlier from Scott that we typically split the Scope 3 into 2 categories: the upstream and the downstream. The upstream, you would overly simplify it say that it is around everything we need to produce our products, and the downstream is related to the use and disposal of our products. Now, for us, the majority of our Scope 3, so the 81% I just referenced, they fall in the upstream bucket, of which the largest contributors are direct materials and also supply chain materials.

We know that we have to work with our suppliers on our ambition to decarbonize, but we also need to consider all of the opportunities entire alongside the entire supply chain and value chain. Typically when you look at the value chain, the sooner you embed environmental sustainability considerations, so at the time of research and development or product strategy, the bigger the impact is likely to be and the lesser the cost of change. But that's not always possible. Then, of course, we need to make sure in achieving our ambitions that every stone is unturned, and so we have to evaluate opportunities in all the other areas. Take for example, distribution, the shift from air to sea freight or elimination of cold chain, you name it.

When we look at the partners that we select and alongside the entire value chain, then it is today that we're absolutely embedding environmental sustainability requirements into the selection of our suppliers, be it through the supplier due diligence or the supplier selection program. In the relationship management with our large strategic accounts, sustainability is top of the agenda. Now, when we think of reducing carbon in a more systematic and also externally recognized way, Roche has chosen the Science Based Targets initiative. Science Based Targets focus on the quantity of emissions that need to be reduced in order to meet the targets set out in the Paris Agreement, limiting global warming to 1.5 degrees Celsius. Science Based Targets also enable effective climate targets with a long-term goal of achieving net zero emissions.

We have 44,500 companies, many of which are our peers in the industry, already committing or submitting targets under the SBTi. Where are we as Roche? We have officially committed to the Science Based Targets initiative in October of 2022, so last year, and are now in the process of target setting to be finalized by year-end. We would move into operationalization and execution as of 2024 onwards. Talking of execution, in order for us to effectively drive this decarbonization pathway, it's essential that we look at building capability, increasing capacity, but also maximizing the use of technology. In the capability space, we've built a sustainability toolkit that is both for the procurement professionals, but also areas in the business.

Basically a knowledge tool, but also within which you can find advice and support, so that we start to embed carbon reduction in our end-to-end procurement processes. We're also evaluating how we can use training materials to upskill our suppliers. From a capacity standpoint, outside of ensuring that we have the capacity and the people to work on these initiatives, we're also need to ensure that we're embedding our carbon reduction objectives within the procurement systems and processes. We're working with a program, an engagement program for our strategic suppliers that are focused around three expectations. One is that they commit to carbon reduction. Two, that they have the ability to report. Three, that they show tangible impact on reduction.

Now from a technology standpoint, that's really interesting because on one hand, we're evaluating targeted investments that allow us to show transparency, but also things like carbon capture and reporting, to continuously monitor our impact against this decarbonization pathway. On the other hand, what's more importantly, we're constantly evaluating new technological innovations that offer an alternative for our suppliers, and that can help us reduce the carbon footprint overall. Now let me talk about 2 very tangible examples that are delivering or that have delivered impact already. These are small examples granted, but they're just to show that the science-based targets will offer us a good platform to deliver into this direction and show the progress. This first example is a sustainable packaging concept for an area in our Diagnostics business.

This is a cross-functional initiative between a Japanese supplier, the global procurement function, and also the logistics function. The status before was that these reagents and calibrators and control products were shipped via cold chain. An extensive amount of plastics and wrap materials was used, and there was a high effort for the inbound logistics department to unpack these products. Now, after the introduction of this novel packaging material, which is a so-called Tri-Wall, this is a 3-layered corrugated cardboard box. By the way, 100% recyclable material, and that actually serves also as insulation. It keeps the products cool between 2 and 8 degrees Celsius without any external cooling agents. With the introduction of this novel packaging concept, multiple benefits were accomplished. One, the processing time was significantly reduced down to 2 minutes.

We had a reduction of packaging, 25 cartons, but also filler foil. There was a transition from 18 one-way pallets down to 9 EU pallets, which of course also led to a saving of transportation costs. Finally, most importantly, a CO2 footprint reduction of 17 tons per year. An impressive example already delivering impact. The second example I would like to talk to is about the introduction of drop shipments of the COVID-19 rapid tests. Before, the tests would be produced in Korea by a supplier and then shipped to our global logistics and distribution hub to be then shipped and distributed into our commercial sales and distribution affiliates. With the introduction of so-called drop shipments, the products are actually shipped directly into the commercial sales and distribution affiliates. You eliminate a leg of transportation.

Drop shipments are very complex to introduce. There's multiple considerations, be it quality, safety, tax, the team here persevered and the benefits are impressive in that we see a transportation saving of about EUR 100 million introduced here, and also a total reduction in our carbon emissions of 87,000 tons. On the last two slides, I would like to talk to you about collective action. There's two initiatives that I wanna talk to you about. One, the Sustainable Markets Initiative and the other program is called Energized. The Sustainable Markets Initiative started at COP26, it aims to lead the transition to a sustainable future by convening public and private sector leaders to align economic value with social and environmental sustainability.

Roche has joined the SMI Health Task Force in 2022 with the following focus areas. One, to evaluate decarbonization in our supply chain. Two, to evaluate decarbonization in our patient care pathways and clinical trials. Finally, to evaluate the use of digital innovation in clinical research. There are more short-term goals under the SMI framework and then goals beyond 2025, many of which are already underway, as you will have heard from the prior speakers. In the short term, SMI requires us to assess and disclose emissions, to then set science-based targets, which I referred to earlier already, to show, to set targets and show impact when it comes to the reduction of waste and reuse of materials.

In the mid and long term, there's the ambition to commit and switch to renewable power, renewable heat, but also reduce overall water usage. Again, many of these are well underway. What's also interesting is that this task force is aiming to develop solutions to support suppliers to decarbonize and achieve their targets, and that's gonna be very essential for us in the long run. Energize is another program that we just have recently joined, and it's to accelerate renewable electricity adoption in the pharmaceutical supply chain, basically by providing suppliers with educational content and routes to market, including through buying cohorts. Basically leveraging the collective buying power. What's interesting here is that 14% of our supply chain emissions are actually from suppliers' energy consumption. For us, this represents a tremendous opportunity for overall carbon reduction.

What we're seeing today is that suppliers representing 114 tons of CO2 have already registered through the program. Just as a reminder, the suppliers' Scope 1 and 2 is essentially our Scope 3. Therefore, these type of collective actions will really help us amplify our overall impact. This brings me to the end of my part and also the overall end of the presentation part of today's meeting. I hope I will have provided a good overview into the efforts that are underway in our Scope 3 to decarbonization, but also beyond that in the area of environmental sustainability. I now hand over back to you, Bruno.

Bruno Eschli
Head of Investor Relations, Roche

Okay. I think with that, we can open our Q&A session. I may ask all our speakers on stage. Just let me make one quick announcement before. We have prepared again, a little poll. It's 10 questions, and it's about today's topic and more broadly about ESG. We would be very happy if you could... We'd very much appreciate it if you could take this poll and support us in our efforts here to for you to prepare the content you're interested most. May I ask the speakers on the stage, please? Okay, we have a first question here coming in. This question comes from Pauline Balasiet. I will open now the line. Pauline, please.

Pauline Lecoursonnois
EOS Associate, Federated Hermes

Hello, good afternoon. Thank you very much for taking my question. I'm Pauline Lecoursonnois . I work for EOS at Federated Hermes. First of all, thank you very much for this excellent presentation. I think you have touched on very important topics, and the greater integration of the sustainability agenda into the business strategy is very promising. My question relates to your plan to publish a biodiversity strategy. It seems overall that except for climate, most efforts seem to be targeted at what Roche controls, and this is fundamental and I fully understand why, but I was wondering on the topic of biodiversity, whether your efforts to influence practices along the value chain for this will be informed by your biodiversity risk assessment?

Throughout the value chain so that you identify impacts, dependencies, risk and opportunities to ensure your efforts are really targeted where you can have the most material impact to help reverse natural loss and maybe even have a net positive impact to nature. Thank you.

Bruno Eschli
Head of Investor Relations, Roche

Thank you. I think this would be a question which maybe would go to Richard, and maybe Marielle, you have also something to contribute.

Richard Huerzeler
Chief Environment and Remediation Officer, Roche

Thank you, Pauline, for asking these questions. Actually, you gave us a blueprint for what we aim to do. We are developing an encompassing strategy on biodiversity, which actually really encompasses the pillars that you have mentioned. Also going back to our raw materials and looking into a risk assessment, how they are sourced, where they are sourced, and what their impact on biodiversity is. It is a bit premature to publish all the details on that, but we are working on this and I'm sure we can soon launch the program.

Marielle Beyer
Head of Global Procurement, Roche

Yeah. Nothing to add from my side.

Richard Huerzeler
Chief Environment and Remediation Officer, Roche

I think so we have Any, any further questions, Pauline, or all questions answered?

Pauline Lecoursonnois
EOS Associate, Federated Hermes

No. I understand it's a bit premature. The response is promising. Thank you very much.

Bruno Eschli
Head of Investor Relations, Roche

Okay. Currently, I have no further questions in the queue. I just will, maybe here, stop here and ask again, if anyone has a question, then please come up and raise your hand. Of course, if there are any follow-up questions, I think our team and we will be happy to provide you answers. Then if there's questions coming up later, then please reach out to us. If there's no further questions coming up, I think we would close. I would just like here again, use the occasion to thank all the speakers for their time and all their efforts. I think very valuable efforts really here for the company.

In many ways, really a big contribution, I think, to our daily work and what we do and what we deliver. I would also like to thank here some team members from the IRA team. First of all, Alina Levchuk, who had the overall lead on the event and was working with all the speakers on their presentations. Second, Teresa Schmaus, who is responsible or covers ESG within the IRA team. I think most of you probably know her by now, and who also helped shaping the content of this event. Last but not least, also Eva Losert, who was responsible for the event organization.

As said, I think we are looking forward to a future dialogue, and if there are any remaining questions or any suggestions, then please feel free to reach out to us anytime. Have a good day. We have one additional question in the chat. Let's then quickly do this one. Let me quickly check. There's one question here coming in from Edward Salibi, which is: Thank you for your presentations. I noticed that the last time you reported to CDP was in 2018. Do you plan to report to CDP going forward? I think Richard can take that one.

Richard Huerzeler
Chief Environment and Remediation Officer, Roche

I can start, maybe you can chime in, colleagues. Yes, indeed, we did not report into CDP in the last couple of years. The reason why is that we think that we would aim and focus our endeavors to SBTi. This is the topic that has been shared by Marielle. I think SBTi, where CDP is actually also a member too, that we think that we can cover all Scope 1, 2, and 3 emissions in that area. Maybe Marielle, you want to add some?

Marielle Beyer
Head of Global Procurement, Roche

Not really, Richard. Well said. I mean, that's essentially the chosen framework, right? That we believe is externally recognized and gives us the ability to report, first of all, to set credible targets and then report progress against in the area of decarbonization.

Bruno Eschli
Head of Investor Relations, Roche

Very good. We just have 2 more questions in. One comes from Tamara Hardegger. She's asking: You have a fleet electrification target for 2030, which is excellent. Could you say where you're currently at?

I can start, and maybe Richie, you can join in. Yes, we have a target to electrify our vehicle fleet in many geographies. The ultimate aim is actually to have a emission-free vehicle fleet around the world. We've made some significant progress in Europe and North America, but the exact figures I don't have right at the table today. We could reach out with some more exact figures then at a later stage.

Mm-hmm. Richie, do you wanna add anything to that?

Richard Huerzeler
Chief Environment and Remediation Officer, Roche

Nothing to add.

Bruno Eschli
Head of Investor Relations, Roche

Nope. Good.

Richard Huerzeler
Chief Environment and Remediation Officer, Roche

Thanks.

Bruno Eschli
Head of Investor Relations, Roche

Cool. We'll try to follow up to provide more details. I think there is one more question here from Gundula Schrick. She asks, and thanks, Richard, for the overview on the waste management. Why do you see an increase in waste going to landfill since 2020?

Richard Huerzeler
Chief Environment and Remediation Officer, Roche

Actually, I'm not sure whether I understand the question. What I showed is a chart that shows hazardous waste going to landfill, and this dramatically decreased from 2017 to 2022. However, we still have waste going to landfill overall, but this is non-hazardous waste often, and this is not reflected in this chart. Nevertheless, for all non-hazardous or general waste, we still have the goal to reduce it by another 10% to reduce the plastic waste fraction. Generally, which also influences the avoidance of landfilling, is an increase of recycling of general waste.

Bruno Eschli
Head of Investor Relations, Roche

Very good. Now we are really getting more questions in. There's another one, I think that's a very important one, from Daniel Sanborn. On slide 49, the team lays out a good high-level roadmap to achieving emissions reductions. Are there any plans to lay out estimates around the investments and the CapEx needed to follow through? Who wants to start?

Marielle Beyer
Head of Global Procurement, Roche

I can give it a go, Bruno. I mentioned that under the Science Based Targets initiative, where we are in the process is target setting and basically mapping out the roadmap and the decarbonization pathway. Once we have finalized these targets, we will also make those public because that's will be our baseline against which we're operating. To the extent that we will enclose investments relative to that, we'll have to defer that question.

Bruno Eschli
Head of Investor Relations, Roche

Mm-hmm.

Another question, here, coming from Alan Browers. You measure water consumption intensity per full-time employee, how do you account for this number when your workforce grows? How do you account for this number when your workforce grows?

Richard Huerzeler
Chief Environment and Remediation Officer, Roche

Yeah.

Bruno Eschli
Head of Investor Relations, Roche

-number of employees in the equation.

Richard Huerzeler
Chief Environment and Remediation Officer, Roche

That's actually factored in.

Bruno Eschli
Head of Investor Relations, Roche

Yeah.

Richard Huerzeler
Chief Environment and Remediation Officer, Roche

Actually, it is by full-time employee, if we have any growth in the workforce, we have to do even more endeavors to reach the goal. So far, we think that an absolute water consumption is a number that we have, yes. We really think measuring it by full-time employee and risk-based makes more sense to our operations to really create a meaningful way forward.

Bruno Eschli
Head of Investor Relations, Roche

Mm-hmm. Thanks. Thanks. Maybe there's one more from Simon Alto. Thank you for the presentations. We can see that Roche is doing a lot to decarbonize. It will be great to see clear targets on Scope 3 reductions. The examples were nice, but it would be great to see the bigger picture and a clear strategy.

Marielle Beyer
Head of Global Procurement, Roche

Yeah. absolutely agree, and again, this is the process that we have just started. After extensive work towards year-end, we should be in the position to show a comprehensive roadmap, decarbonization pathways and what's required to achieve those.

Bruno Eschli
Head of Investor Relations, Roche

Mm-hmm. Still a lot of work ahead of us.

Marielle Beyer
Head of Global Procurement, Roche

Yep.

Bruno Eschli
Head of Investor Relations, Roche

Yeah. I'm just... We just have two minutes left, so if there is a final question, then, please raise your hand or send us your question. If not, then I think we can close this event. Thanks again to all the speakers, and have a good day and talk to you soon. Bye-bye.

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