Innovation. Inspiration. Integrity.

2012 biogen idec corporate citizenship report

Lab Director, Mentor, Mind-OpenerTracy callahan

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tabLe oF contents

Letter from Leadership . . . . . . . . . . . . . . . . . . . . 2

About Our Company . . . . . . . . . . . . . . . . . . . . . . . 3

Citizenship and Sustainability at Biogen Idec . . . . . . 5

ImprOvIng LIveS 6

The Lives of patients . . . . . . . . . . . . . . . . . . . 7

Lives in Our Communities . . . . . . . . . . . . . . . 13

The Lives of Our employees . . . . . . . . . . . . . 18

reThInkIng reSOurCeS 26

Water use . . . . . . . . . . . . . . . . . . . . . . . . . . 30

energy use and emissions . . . . . . . . . . . . . . 31

materials and Waste . . . . . . . . . . . . . . . . . . . 33

CreATIng vALue 36

engaging Actively . . . . . . . . . . . . . . . . . . . . . 37

planning Strategically . . . . . . . . . . . . . . . . . . 40

managing responsibly . . . . . . . . . . . . . . . . . 44

About This report/priority Topics . . . . . . . . . . . . 47

grI Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49

In 2012, more than 1,600 employees embarked on Care Deeply volunteer Day initiatives, participating in more than 80 projects in 22 countries around the world . Throughout this report we’ve included summaries of Care Deeply initiatives that showcase the positive impact Biogen Idec employees had on their communities around the world . Look for “ ” throughout the report for individual stories . read more about Care Deeply volunteer Day on page 13 .

PDF NAVIGATION each page includes a “ ” icon located in the lower right-hand corner of the page . By clicking this icon you will be advanced to the next page .

Father, Mechanic, Patient Advocate

Willie was diagnosed with multiple sclerosis in March 2008 and chose AVONEX® as his therapy because of the convenient once-a-week dosing schedule.

Willie MarTin

ON THE COVER: Using water and food coloring, Biogen Idec scientist Tracy Callahan performs a mock experiment for school-age children at our Cambridge, Mass. Community Lab.

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DEaR FEllOw STakEHOlDERS,

in 2012, biogen idec reaLized remarkabLe accompLishments in aLL areas oF our operations: We provided meaningFuL therapies to more peopLe than ever beFore; brought muLtipLe potentiaL neW treatments through deveLopment and cLoser to patients in need; and enhanced our pharmaceuticaL operations and technoLogy (po&t) organization to improve production eFFiciencies.

The transformation of our company has both enabled us and required us to take a fresh look at how we do our work – and that includes corporate citizenship . We have recently developed a strategic approach to securing our place in society, with a strong focus on philanthropy and community engagement, while maintaining sharp focus on our impact on the environment . As Biogen Idec grows as a leading corporate citizen, our commitment is becoming more global, more focused and more reflective of our values and those of the people we serve .

We have embraced our growth as an opportunity to elevate our citizenship efforts and to incorporate them directly into our culture and our business activities . With the help of our more than 6,000 employees worldwide, we will continue to exemplify high standards and create economic, social and environmental value for our company and our stakeholders . This is part of what it means to be a truly great organization .

This Corporate Citizenship report highlights our performance, accomplishments and plans to continually improve our commitment to the community and environment . highlights include:

• A restructured Biogen Idec Foundation, resulting in an enhanced and expanded focus on science education at all academic levels;

• The achievement, several years ahead of schedule, of our goal to reduce our overall environmental footprint by 15 percent;

• An expanded global scope for our Care Deeply volunteer Day, which encourages employees to give back to their communities;

• A fresh corporate Code of Conduct that is based on principles rather than rules, and that is deeply rooted in the values we live by; and

• A continued internal cultural transformation that has strengthened company diversity and inclusion and work-life balance initiatives .

As a result of these focused efforts, we have achieved listing on the Dow Jones Sustainability Index for the third year in a row .

We are proud of our record, and appreciate your interest in Biogen Idec and our commitment to the communities where we operate . I hope that upon reading this, our fourth corporate citizenship report, you will agree that the values it portrays offer an apt description of how we approach this important aspect of our business and reflect our credo: Care Deeply . Work Fearlessly . Change Lives .

Sincerely,

George a. Scangos, Ph.D.Chief executive Officer

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Biogen Idec has a passionate commitment to discover, develop and deliver innovative therapies that improve the lives of patients with neurodegenerative diseases, autoimmune diseases and hemophilia . As a company, we know that cutting-edge science can change the course of devastating diseases .

We are a publicly traded company listed (BIIB) on the nASDAQ Stock exchange .

Biogen Idec is headquartered in Weston, massachusetts, united States, and maintains an international headquarters in Zug, Switzerland . A full list of our global locations can be found here .

Revenues$5.5 billion

Employees6,000 (approximately)

Our BrandsMultiple Sclerosis (MS) Therapies

AvOneX®

(interferon beta-1a)

TYSABrI® (natalizumab)

TeCFIDerA™ (dimethyl fumarate)

FAmpYrA® (prolonged-release fampridine tablets)

About Our Company

Financial PerFOrManceFiscal Year (as of December 31) 2010 2011 2012

Operating Results ($ in millions, except EPS)

Total revenues 4,716 5,049 5,516

gAAp net Income Attributable to Biogen Idec 1,005 1,234 1,380

gAAp Diluted earnings per Share (epS) 3.94 5.04 5.76

Financial Position ($ in millions)

Total Liabilities 2,643 2,623 3,166

Total Shareholders’ equity 5,449 6,427 6,964

r&D Investments (featured in annual reports) 1,249 1,220 1,335

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Significant Recognition Received in 2012Dow Jones Sustainability index north america

Third consecutive year . number three in Biotech sector .

Newsweek 2012 Green rankings – U.S. 500 list

number five in healthcare sector; number 33 overall .

Pacific Sustainability index

number 12 in pharmaceuticals sector .

carbon Disclosure Project S&P 500

number six out of 53 in healthcare sector; number two within Biotech .

About Our Company

2012

Per formance Scorecard At-A-Glance

Patient and community assistance

$353 millionemployees Proud to Be associated with Biogen idec

97%environmental risk-Weighted index (see page 27)

Biogen idec reached its 2015 environmental goals three years ahead of schedule.

82.4% of our 2006 baseline footprint

85% 2015 goal

Women on Board of Directors

3 (of 12)

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biogen idec’s commitment to corporate citizenship and sustainabiLity comes to LiFe through the passion and inspiration oF our more than 6,000 empLoyees WorLdWide.

As we focus on our three core therapeutic areas – neurodegenerative diseases, autoimmune diseases and hemophilia – we understand the importance of strategically aligning our company with the needs of patients and other stakeholders, society and our shared environment .

These are exciting times for Biogen Idec . We look forward to strong near-term growth driven by our core business and to an era of long-term opportunity propelled by late-stage pipeline therapies filed with the u .S . Food and Drug Administration and the european medicines Agency for approval .

We have been a leader in the development of mS therapies for more than two decades . Our expertise and commitment have produced the industry’s most robust mS franchise, helping to manage the disease from its earliest signs through its later stages with four approved treatments for people living with mS .

Our vision is to extend this leadership to transform the standard of care for hemophilia, to excel in discovery science and continue innovating at the intersection of science, medicine and economics to transform drug development . These are ambitious yet achievable goals . Leveraging the opportunities and addressing the challenges that lie ahead requires thinking differently, working fearlessly and acting decisively .

The landscape of the healthcare industry is changing. Austerity measures by governments and other payers throughout the world pose a real challenge to our mission of improving the lives of patients with unmet medical needs . Today it’s more important than ever to demonstrate the real-world health and economic impacts of our therapies . We’re doing that through a revitalized and collaborative drug discovery, development and delivery process; by engaging with stakeholders and in public policy debates; and with a drug pricing policy that balances commerce and citizenship .

The need to attract, develop and retain the best and the brightest talent has never been more critical. That’s why we’re working to cultivate a Culture of excellence where employees are focused on clear priorities, employ crisp decision-making, are collaborative team players, are innovative and creative and display a high level of commitment and accountability . We partner with world-class universities, provide fellowships and internships, offer innovative workforce and leadership training, integrate diversity and inclusion into our core business strategies, and support science and medical education .

The earth’s ability to absorb the impacts of industry and provide needed resources is becoming increasingly stressed. That’s why Biogen Idec is rethinking the way it uses natural resources . We’re setting and meeting ambitious environmental goals and engaging in cutting-edge methods for reducing water use, energy consumption, greenhouse gas (ghg) emissions, materials and waste .

Cit izenship and Susta inabi l i t y at B iogen Idec

biogenidec.com6 biogenidec.com

Biogen Idec’s commitment to improve lives

starts with patients . They’re the reason we’re

in business . And we str ive to make a

meaningful difference in their lives through our

therapies, by offering financial assistance and

advocacy services and by walking alongside

them to raise awareness and funds .

We also seek to improve the lives of people in

the communities in which we operate and for

the more than 6,000 Biogen Idec employees

who make it all possible . At the intersection of

these two priorities was the successful 2012

worldwide rollout of our Care Deeply volunteer

Day . In addition, through the Biogen Idec

Foundation and other company resources, we

support medical and STem education, provide

humanitarian assistance and fund important

community projects .

Improv ing L ives

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Biogen Idec’s commitment to improve lives

starts with patients . They’re the reason we’re

in business . And we strive to make a meaningful

difference in their lives – through our therapies,

by offering financial assistance and advocacy

services and by walking alongside them to

raise awareness and funds .

We also seek to improve the lives of people in

the communities in which we operate and for

the more than 6,000 Biogen Idec employees

who make it all possible . At the intersection of

these two priorities was the successful 2012

worldwide rollout of our Care Deeply volunteer

Day . In addition, through the Biogen Idec

Foundation and other company resources,

we support medical and science, technology,

engineering and math (STem) education,

provide humanitarian assistance and fund

important community projects .

Improv ing L ives

Mother, Dog Lover, InspirationLisa was diagnosed with relapsing-remitting multiple sclerosis in 2007. Today, she mourns her lost abilities but with TYSABRI® on her side has learned how to develop other abilities.

liSa SinDOni

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Patient-Focused Research and Development

at the heart oF meeting patients’ needs and improving their Lives is a discipLined, muLtiLayered approach to r&d that truLy sets biogen idec apart.

We’ve not only revitalized our focus on in-house and collaborative early-stage discovery, but we’re doing it at a time when many major drug companies are pulling back on internal research . In order to spot the best treatment candidates and opportunities, we believe we need to stay ahead of the curve, both scientifically and technologically . This emphasis on breakthrough science is complemented by the scope, relationships and deep talent pool of a global biopharmaceutical company that devotes more than 20 percent of its $5 .5 billion in revenues to developing new therapies .

Our r&D strategy is focused on discovering and developing first-in-class and/or best-in-class molecules that improve the safety or effectiveness of therapies for unmet medical needs . We look for discoveries that either break new ground in treatment or make a meaningful improvement in current therapies .

r&D at Biogen Idec encompasses three workflows: Discovery, where we identify and validate new targets; Development, which spans preclinical studies through phase III trials; and Global Medical affairs, which delivers medical education to healthcare providers and supports phase 4 (investigator-initiated) clinical trials .

We’ve been significantly strengthening our Discovery organization over the last several years and made some of our most important strides in 2012 . The newly created position of Senior vice president and Chief Scientific Officer has been filled by a world-renowned researcher and professor of Cell Biology from harvard medical School . This important addition to our scientific thought leadership team also brings us access to invaluable professional relationships and resources, a number of which are already contributing to our research . Biogen Idec has also made a strong commitment to attract and hire other top talent for our Discovery organization who will bring with them their own cutting-edge thinking and opportunities for collaboration .

We’ve not only revitalized our focus on in-house and collaborative early-stage discovery, but we’re doing it at a time when many major drug companies are pulling back on internal research.

ImpROVINg lIVES

The L ives of Pat ients

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Discovery and Development Process

Another important development in 2012 was the establishment of the Biogen idec r&D innovation Fund, a pool of money set aside specifically to help drive innovative thinking, technology and collaboration throughout our r&D organization . Biogen Idec has earmarked $20 million of our r&D budget for the Innovation Fund in 2013, which will be applied toward our collaborative work on amyotrophic lateral sclerosis (ALS), mS and autoimmune diseases .

part of Biogen Idec’s Culture of excellence is to reward our people for exceptional work . We established the Biogen idec Development Sciences innovation awards in 2011 to recognize employees who exemplify innovation in the drug development process . In 2012, more than 20 individuals and teams received awards for demonstrating innovative thinking and actions that made a positive scientific, clinical, operational or compliance impact .

We’re also making targeted investments in technology and translational medicine, including enhanced neuroimaging and biomarker strategies, which enable us to improve productivity and make better decisions earlier in the development process . In many cases we’re building our own equipment and designing our own algorithms . This allows us to better identify subsections of the patient population who may be more likely to benefit from a particular therapy, determine if a compound is having the intended effect and detect disease progression even in the absence of new symptoms . It also enables us to better analyze the wealth of data that we have on hand to look for new applications for our existing drugs and develop new treatments .

pre-DISCOverY

DISCOverY

preCLInICAL STuDIeS

CLInICAL Tr IALS

ApprOvAL & prODuCTIOn

5,000-10,000 Compounds

250 Compounds

5 Compounds

1 Approved Drug

UnDerSTanDinG The DiSeaSe

iDenTiFyinG TarGeTSchoosing the of fending molecule to target with a drug

ValiDaTinG TarGeTStesting the target and confirming its role in the disease

SearchinG FOr a leaD cOMPOUnDto act on the identified target

PerFOrMinG early SaFeTy TeSTS

OPTiMizinG The leaD cOMPOUnDaltering promising candidates to improve proper ties

PerFOrMinG laB anD aniMal TeSTinGto determine if the drug is safe enough for human testing

PerFOrMinG iniTial hUMan TeSTinGin a small group of healthy volunteers

TeSTinG in a SMall GrOUP OF PaTienTS

TeSTinG in a larGe GrOUP OF PaTienTSto show safety and ef fectiveness

SUBMiTTinG aPPlicaTiOn FOr aPPrOValto regulatory bodies

MOVinG FrOM SMall-Scale TO larGe-Scale ManUFacTUrinG

phASe 1 phASe 2 phASe 3

nUMBer OF VOlUnTeerS

20-100 100-500 1,000-5,000

3-6 years 6-7 years 0.5-2 years for approval

Adapted from innovation.org – a project of the Pharmaceutical Research and Manufacturers of America

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Our revitalized internal discovery process is complemented by innovative collaborations and partnerships with industry and academia – and, in 2012, the acquisition of Stromedix – that span the entire product pipeline . Collaboration often speeds discovery of new targets and pathways and can be highly productive and cost efficient .

Academic Collaborations

harvard Medical School We’re working with harvard researchers on exciting early-stage projects, including:

• mapping human protein interactions to yield new insights, pathways and targets for a wide range of diseases

• modeling system genetics to identify new pathways for parkinson’s disease

Duke University and hudson alpha institute for Biotechnology We’re working with these two premier research institutions to sequence the genomes of up to 1,000 patients with ALS in an effort to gain a deeper understanding of the disease’s fundamental genetic causes .

Partnerships and Business Development

isis Pharmaceuticals Biogen Idec has signed three development agreements with Isis pharmaceuticals (Isis), a leader in antisense, or rnA-targeted, drug discovery and development . Through these agreements we will:

• Jointly develop and commercialize Isis’ antisense investigational drug, Isis-Smnrx, for the treatment of spinal muscular atrophy (SmA) in children . Isis reported full data from a phase 1b clinical trial at the American Academy of neurology meeting in march 2013 .

our revitalized internal discovery process is complemented by innovative collaborations and partnerships with industry and academia. collaboration often speeds discovery of new targets and pathways and can be highly productive and cost efficient.

• Collaborate to develop and commercialize a novel antisense drug for the treatment of myotonic dystrophy type 1 (Dm1), the most common form of muscular dystrophy in adults .

• Combine our resources to discover and develop antisense drugs against three undisclosed targets to treat neurological or neuromuscular disorders .

Care Deeply Day: United Kingdom and Ireland Over two days, 51 employees in the UK and Ireland took part in five different projects. Initiatives included decorating a safe house for a local women’s shelter and a center for the elderly, cultivating a local garden that provides enjoyment to adults with learning disabilities, construction work at a local swan rescue center, and helping an Irish youth group with a garden project.

Portola We’ve entered into an exclusive, worldwide collaboration and license agreement to develop and commercialize highly selective, novel oral Syk inhibitors to treat rheumatoid arthritis (rA), systemic lupus erythematosus (SLe) and other autoimmune and inflammatory diseases .

Stromedix (acquisition) In 2012, we acquired Stromedix, whose lead drug candidate, STX-100, has the potential to be a best-in-class, first-to-market therapy for idiopathic pulmonary fibrosis (IpF) .

Samsung (joint venture) In 2012, we formalized our joint venture with Samsung, creating Samsung Bioepis . This joint venture leverages our expertise and capabilities in protein engineering, cell line development and recombinant biologics manufacturing to position the company to participate in the emerging market for biosimilars .

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Product Pipeline

phase OnecD40lSystemic Lupus Erythematosus

BiiB037 (hUMan anTi-aMylOiD BeTa MaB)Alzheimer’s Disease

SMnrX

Spinal Muscular Atrophy

neUBlaSTinNeuropathic Pain

phase TwoOcrelizUMaB (hUManizeD anTi-cD20 MaB)Multiple Sclerosis, Relapsing-Remit ting

anTi-TWeaKLupus Nephritis

anTi-linGOMultiple Sclerosis

STX-100Idiopathic Pulmonary Fibrosis

phase ThreePleGriDy (PeGinTerFerOn BeTa-1a)Multiple Sclerosis, Relapsing Forms

DaclizUMaBMultiple Sclerosis, Relapsing Forms

Ga101 (hUManizeD anTi-cD20 MaB)Chronic Lymphocytic Leukemia

Ga101 (hUManizeD anTi-cD20 MaB)Non-Hodgkin’s Lymphoma

TySaBri (naTalizUMaB)Secondary-Progressive MS

Fi l ingrecOMBinanT FacTOr Viii Fc (rFViiiFc)Hemophilia A

recOMBinanT FacTOr iX Fc (rFiXFc)Hemophilia B

ph

AS

e 2

ph

AS

e 1

ph

AS

e 3

FIL

Ing

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Patient Health Outcomes and Product Portfolio

“biogen idec is committed to deLivering innovative treatments and setting neW standards For the next generation oF medicines.”— George A. Scangos, Ph.D., CEO of Biogen Idec

Through our current product portfolio – defined as therapies approved for use or that have been submitted for approval – we serve patients with multiple sclerosis (mS), non-hodgkin’s lymphoma (nhL), rheumatoid arthritis (rA) and hemophilia A and B . As a company focused on breakthrough science, we’re ultimately measured by the effectiveness of our therapies . Seeking to improve the lives of patients is what fuels employee passion and enables Biogen Idec to return value to society and our shareholders .

Biogen Idec pioneered the treatment of mS and continues to make great strides not only in slowing the progression of the disease and combating its symptoms, but in developing exciting new delivery methods that improve the quality of patients’ lives .

We had three strong examples of this in 2012: the introduction of two improvements to aVOneX, including the AvOneX pen® auto-injector and the AvOSTArTgrIp® titration kit, which helps reduce the frequency and severity of flu-like symptoms; and the march 2013 FDA approval of and subsequent launch of TecFiDera™ (dimethyl fumarate), a new first-line oral treatment for people with relapsing forms of mS, including relapsing-remitting multiple sclerosis (rrmS), which is the most common form of this disease .

As we intensify our commitment to mS, we are leading what we believe will be a transformation in the standard of care in hemophilia . In 2012, we reported positive clinical data from phase 3 trials for long-lasting recombinant factor Viii Fc fusion protein (rFvIIIFc) for the treatment of hemophilia A and long-lasting recombinant factor iX Fc fusion protein (rFIXFc) for the treatment of hemophilia B .

These two therapies, the first true innovations in hemophilia in two decades, have the potential to change the way people with hemophilia think about treatment – reducing the burden of treatment and improving long-term health outcomes at the same time . As of this writing, the FDA has accepted our Biologics License Application (BLA) for marketing approval of rFIXFc, and we have submitted a BLA for rFvIIIFc . We anticipate launches for both therapies over the next 12 months .

A further description of our product portfolio and the diseases and conditions they treat can be found in the Therapies section of our website .

Care Deeply Day: Canada Team Canada undertook a number of MS-focused initiatives during Care Deeply Day. These included participating in an MS Walk and MS Bike Tour, as well as providing donations to the Cancer Society, Alzheimer’s Society and the United Way. The team also assisted the MS Society Carnation Campaign, which focuses on raising awareness of MS through the daily distribution of carnations in public spaces across Canada.

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Patient Safety During Clinical Trials

A key element of developing therapies that improve the lives of patients is the clinical research that gives doctors and researchers valuable data on the benefits, side effects and possible applications of new drugs, as well as potential new combinations, doses and indications for existing drugs . One of Biogen Idec’s highest priorities is to protect the health and safety of the patients who participate in these clinical trials and to help them understand the potential benefits and risks . In 2012, more than 10,000 patients in multiple countries participated in phase 1-3 clinical trials sponsored by Biogen Idec .

A description of our clinical trial process can be found under the Corporate Citizenship tab of our website in the Improving the Lives of patients section .

Patient Communications

Whatever the disease, the decision to undergo treatment must be an informed one . Biogen Idec is committed to openly communicating the benefits and risks of our therapies to help healthcare professionals and patients make the best choices . It’s a commitment that includes putting up-to-date safety information on product labels, providing information directly to healthcare professionals and ensuring that all of our promotional materials accurately reflect product risks and benefits .

more information, including background on our TYSABrI TOuCh communications program can be found under the Corporate Citizenship tab of our website in the patient Safety & Transparency section .

Patient Services

Our commitment to improving patients’ lives goes beyond the treatments we develop; we also work hard to support patients and their caregivers with a range of best-in-class services . For example, we’ve created a number of programs under the MS ActiveSource® umbrella to help with the informational, emotional and logistical considerations that are part of living with mS .

We help patients and their families address the financial impact of treatment through our ActiveAccess™ program.

We also help patients and their families address the financial impact of treatment through our ActiveAccess™

program . In 2012, Biogen Idec contributed nearly $349 million in financial support through our free drug program, copay assistance and patient charitable donations .

Information on our MS ActiveSource and ActiveAccess programs can be found under the Corporate Citizenship tab of our website in the patient Services sections .

Financial aSSiSTance (dollars in millions)

In 2012, Biogen Idec contributed $349 million in financial support to patients through our free drug program, copay assistance and charitable donations . We also provided more than $2 million to support fellowships and independent medical education programs . Additionally, the Biogen Idec Foundation awarded grants totaling $1 .6 million to support a variety of educational and community-based initiatives . 11 12

$353.0

$291.9

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empoWering the peopLe in the communities Where We Work is an important part oF our commitment to corporate citizenship.

Our citizenship efforts are about much more than just “giving back .” They are a way to engage our employees in causes that help satisfy their passions . What’s more, they are simply sound business practice . In addition to supporting patient communities and assisting others in need, we invest in important educational activities that help develop today’s science and technology professionals and nurture the workforce of tomorrow .

Caring Deeply Around the World

In 2012, Biogen Idec embarked on its second annual Care Deeply volunteer Day, which provides employees with the opportunity to make a difference in their local communities . This innovative program marries our commitment to community outreach with employee

engagement . Care Deeply Day was introduced across the company’s largest locations in 2011 and rolled out globally to all of our locations in 2012 . employees around the world developed unique programs that were focused on having a measurable impact in their local communities – from activities that benefited the environment to initiatives related to the diseases our therapies address .

In 2012, more than 1,600 employees embarked on Care Deeply volunteer Day initiatives, participating in more than 80 projects in 22 countries around the world . Throughout this report we’ve included summaries of Care Deeply Day initiatives that showcase the positive impact Biogen Idec employees had on their communities around the world .

Care Deeply Day: India Care Deeply Day in India encompassed three initiatives designed to give back to three communities in various ways. Employees took the day off to focus on volunteer efforts that would make a measurable impact on the lives of others. They participated in Donate for a Smile, to provide much-needed supplies such as clothes, accessories and other items for people affected by the devastating Assam floods; Akshaya Patra, an online fundraising drive that provided 80 sponsored children with a year’s worth of mid-day meals; and Day of Service, in which a team visited the Khushboo welfare society to clean the grounds and spend time with the children.

ImpROVINg lIVES

L ives in Our Communi t ies

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Biogen Idec Foundation

The Biogen Idec Foundation was established in 2001, dedicated to improving the quality of people’s lives and contributing to the vitality of the communities where we operate, with a special emphasis on innovative ways to promote science literacy and encourage young people to consider science careers .

As Biogen Idec grows, we continue to invest deeply and strengthen our partnerships and support the communities in which we operate . In 2012, we reinvigorated and restructured the Biogen Idec Foundation to ensure that our philanthropic efforts keep pace with our corporate growth . The result is that our foundation made a stronger impact on our communities through significant programs .

The Biogen Idec Foundation made significant contributions to the following initiatives in 2012:

• A $1 million grant to the museum of Science in Boston to establish the “Biogen Idec Science education Fund,” set to support interactive science education and outreach programs for middle- and high-school students across the state . The grant is the largest single grant awarded by the Biogen Idec Foundation to any organization in massachusetts .

• A $100,000 grant to Teach For America programs in massachusetts and eastern north Carolina in support of STem education .

• A $65,000 grant to the museum of Life and Science dedicated to running the “Investigate health Laboratory,” a hands-on exhibit that attracts more than 32,000 visitors annually to participate in guided science experiments in a fun and engaging atmosphere – exploring topics in chemistry, biology, physics and more .

Ongoing programs supported by the Biogen Idec Foundation include:

Micro-Grants for Science-Based Programming This program provides micro-grants of $250-$2,500 to schools and nonprofits to extend their work in science education . During 2012, we had the pleasure of issuing 43 micro-grants totaling $82,000 that supported programs such as:

• putnam Avenue upper School in Cambridge, mass ., for an engineering design program where students will design and build remote-controlled rovers and race cars .

• Somerville high School in Somerville, mass ., for a group of 100 ninth graders to embark on an ecology field trip to explore species diversity, test water quality and conduct experiments on the ocean shoreline .

• Cedar ridge high School in hillsborough, n .C ., for a class set of data analysis technology .

• north Carolina School of Science and math in Durham, n .C ., for a residential summer enrichment program designed to further inspire minority students at the school to pursue STem careers .

academic Matching Gifts Through this program, the Foundation matches up to $5,000 in donations made by employees and our Board of Directors to qualified colleges and universities in the united States . In 2012, the Foundation awarded more than $150,000 in academic matching gifts .

Strong communities The Biogen Idec Foundation also provides grants to empower and support local community needs, including general education, human services, and culture and the arts . Some of the initiatives we supported in 2012 include:

• greater Boston Food Bank “kids Café program,” which provides healthy meals five evenings per week to 1,000 children, ages five to 18, who are at high risk of hunger .

• meals on Wheels Wake Forest Adopt-a-Day program, developed as a means to bridge the growing gap that exists between Wake County’s need for homebound meal delivery services and funding for the program .

• Cambridge multicultural Arts Center to present programs that exhibit the artwork of ethnically and culturally diverse artists to educate the community about diversity and to make our facilities available to the community .

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Supporting STEM Education

Science is exciting! That’s the message Biogen Idec seeks to impart to the numerous school-age children we help teach and inspire . The long-term ability of our company and our industry to achieve breakthroughs in biotechnology and explore cutting-edge science and medicine depends on the drive, dedication, creativity and educational excellence of future scientists .

To that end, we support a number of ongoing education and mentoring programs:

Keystone Symposia For the first time, Biogen Idec collaborated with keystone Symposia (kS) on molecular and Cellular Biology – an organization that connects scientists across different life science disciplines through cutting-edge research conferences – to foster career development of under-represented minority scientists (urm) . efforts focus primarily on early-career professionals and include travel awards to graduate students and postdoctoral fellows as well as invited speakers to participate at kS conferences that are held within and outside the united States . In addition, Biogen Idec sponsored two mentoring sessions that brought together urm scientists, organizers of the meeting and other world-renowned scientists in the biomedical fields .

Biomedical Science careers Program The Biogen Idec Foundation has been a long-time supporter of the Biomedical Science Careers program (BSCp) which was established in 1991 . In 2012, BSCp also partnered with our Talent Acquisition and global Diversity Inclusion teams to advance the career opportunities of its students through mentoring, speaking engagements and internships . The goal of the organization is to increase the number of under-represented minorities in the health professions and the biomedical sciences . BSCp identifies academically outstanding minority students and trainees dreaming of a career in medicine, healthcare, science and biotechnology; and provides them with information, support and scholarships . Since its inception, more than 6,100 students and 1,100 postdoctoral trainees and junior faculty members have participated in BSCp programs .

community lab Our Community Lab facilitates the engagement of students in middle school and high school to introduce scientific methods and experience hands-on, real-world science at our research facility . Our Cambridge, mass . lab is considered the gold standard, and in 2012 celebrated 10 years of providing hands-on learning opportunities . In 2012, the Lab hosted 126 class visits and nearly 2,500 students, helped by 123 Biogen Idec volunteers .

Community Lab facility

16 biogenidec.com

The Cambridge Community Lab features a 1,100-square-foot dedicated laboratory classroom where students engage in hands-on activities developed in close collaboration with the Cambridge and Somerville public school systems . Our Community Lab offers students these eye-opening opportunities through two primary programs: Class visits and Advanced Summer Sessions .

In August 2012, 16 new Teach For America teachers visited the Community Lab where they interacted with high school students in the Advanced Summer Session . The teachers were able to get valuable feedback on their lesson plans and see what highly motivated students are capable of doing .

Kinder-Universität zürich For the third straight year, Biogen Idec has been the exclusive biotechnology sponsor of kinder-universität Zürich (Children’s university of Zurich), a program that provides lab-based curricula to third- through sixth-graders . This program, serving about 700 children per year, is aimed at making lab learning fun and introducing young students to such topics as microscope use, climate change and electricity .

international School of zug and luzern (iSzl) Beginning in 2011 and extending into 2012, Biogen Idec employees volunteered to help teach an after-school science program at ISZL, engaging students with hands-on laboratory experiments . The school’s mission is to provide a high-quality education for international preschool to grade 12 students and provide a caring and stimulating environment that promotes achievement .

room to read Our support of room to read has resulted in the building of two libraries and a school in Sri Lanka as well as the publication of a book in the local language of nepal . By helping children become life-long learners with access to quality education, we believe we can pique their interest in science and innovation .

Promoting Career Exploration

young Women in Bio encouraging girls to enter science and technology-related fields is critical to the future success of our industry and to helping tomorrow’s women secure positions in some of the world’s fastest-growing and lucrative fields . One way Biogen Idec supports this important goal is by hosting events for the Young Women in Bio (YWIB) organization . established by the professional organization, Women in Bio, YWIB is an educational and career exploration program for middle and high school-aged girls .

In conjunction with the Women in Bio research Triangle park (rTp) chapter, the Biogen Idec rTp campus opened its doors in march 2013 to two dozen curious middle school girls for an afternoon of lab activities that mimicked real world jobs and careers . The young women heard from female scientists who work in various departments of our company . They learned by shadowing the scientists on a tour of the facility . The afternoon wrapped up with pizza and conversations between the girls and Biogen Idec employees .

Massachusetts Biotechnology Job Shadow Day In 2012, Biogen Idec participated in the annual massachusetts Biotechnology Job Shadow Day, which paired local students with Biogen Idec volunteer mentors during their visit to Biogen Idec’s Cambridge laboratories and offices . The mentors and other Biogen Idec employees shared insights on their careers and experiences, providing the students with advice on pursuing careers in the sciences .

north carolina Museum of natural Sciences Biotechnology Day Biogen Idec partnered with north Carolina State university’s Biomanufacturing Training and education Center to host a booth at the museum’s annual Biotechnology Day . The booth offered two hands-on activities for attendees to learn about biomanufacturing: using detergent and alcohol to extract DnA from strawberries and a manufacturing gowning exercise that enabled visitors to “gown-in” as if they were going onto a manufacturing floor .

Advancing Medical Education

Supporting medical education is a natural extension of our mission . Biogen Idec offers educational grants, fellowships and other support to academic institutions, hospitals and community-based healthcare organizations in the therapeutic areas we serve .

In 2012, Biogen Idec contributed close to $2 million to independent medical education programs for healthcare providers, including physicians, nurses and pharmacists . This year we focused on educational gaps that addressed the most current clinical trial data on new therapies, the latest evidence-based therapeutic regimens, risks and benefits of available therapies, mechanisms of action for mS therapies and their impact on efficacy and safety, and best practices in patients’ health during the treatment span of mS, from onset onward . All programs are developed and administered completely independently of any direction or influence from Biogen Idec, in accordance with relevant internal policies and external regulations .

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MS clinical Fellowship Program Introduced in 2006, the Biogen Idec mS Clinical Fellowship program supports clinical fellows at highly respected medical institutions who are leading the effort to care for mS patients and find new treatments for this serious disease .

For the 2012-2013 academic year, Biogen Idec awarded 10 grants totaling $900,000 to top universities and academic institutions across the united States to support mS Clinical Fellowships . Once grants are awarded, the selection and placement of the mS Clinical Fellows are at the discretion of the recipient institution . Since its inception, we have donated nearly $4 million through this program .

Supporting Patient Communities

We are focused on improving the lives of patients with serious unmet medical needs, with the goal of helping them live their lives as fully as possible . That’s why our company and our employees contribute to nonprofit organizations that share our mission, by providing grants, raising funds and volunteering to help educate and support patient and provider communities . We are also committed to innovative and collaborative partnerships with patient advocacy organizations in our therapeutic areas of interest – to listen to and understand the needs of patients and their families .

In 2012, we supported patient advocacy organizations around the world, including mS organizations in Argentina, Australia, Japan, Canada and the united States . We also supported key umbrella organizations such as the

International multiple Sclerosis Foundation, the european multiple Sclerosis platform, the rare disease organization eurOrDIS, the Chronic Disease Fund, the national hemophilia Foundation, the ALS Association and ALS Canada, and members of the mS Coalition (Accelerated Cure project for multiple Sclerosis, Can Do mS, Consortium of multiple Sclerosis Centers, International Organization of multiple Sclerosis nurses, multiple Sclerosis Association of America, multiple Sclerosis Foundation, national multiple Sclerosis Society, united Spinal Association), mSWorld, as well as various academic institutions .

Around the globe, our employees embody our credo of caring deeply . In Australia, employees participated in the 50-mile plus Sidney to gong mS ride and an mS Day Cupcake Challenge . In Canada, our teams participated in bike tours, while employees in the Czech republic, Denmark, India, Italy, poland and Switzerland participated in mS walks . In Japan, Biogen Idec employees took to the streets of central Tokyo on World mS Day to distribute disease awareness information .

In the united States, our long-standing commitment to making a difference for those affected with mS was recognized in 2012, when Biogen Idec received the national multiple Sclerosis Society (nmSS) national Team growth in Fundraising Award . From 2011 to 2012, Biogen Idec increased its nmSS fundraising 52 percent and almost doubled team participation in mS walks . Across the united States, employees participated in hemophilia walks and raised significant funds for their local events . Adding to funds raised by our employees, Biogen Idec made a donation for each u .S . employee who participated in mS, ALS and hemophilia walks in cities where we have corporate locations .

Care Deeply Day: Italy Employees across Italy launched a number of initiatives to make an impact in their communities during Care Deeply Day. The core of the Italian effort was in Milan, where employees participated in a fundraiser that provided more than 2 million euros to the Italian Association for MS Patients (IASM). In addition, the Milan team participated in a number of activities that included delivering clothing and personal hygiene supplies to those in need and providing support for two children, one in Egypt and one in Bolivia, to help them continue their educations. Meanwhile, in Naples, Bologna and Bari our employees also provided various types of support to the IASM.

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as a science and technoLogy company, biogen idec is onLy as great as the peopLe We attract, deveLop and retain. We Want them to Work FearLessLy and have the courage to speak up, step up and Lead.

To this end, we take an integrated approach to creating a global Culture of excellence through collaboration, innovation, diversity, recognition and work-life balance . This focus helps employees set priorities, grow and learn, make crisp and timely decisions, think creatively and embrace accountability .

Biogen Idec has long understood the value of bringing together diverse viewpoints to solve problems that range from everyday operational issues to major medical needs . In recent years, we have strengthened our commitment to foster diversity and inclusion within our company through a variety of programs, policies and initiatives .

We also understand how important it is to keep our employees engaged in the success of the company and their own careers . Through initiatives such as our annual companywide employee survey and a variety of training and leadership programs, we are ensuring excellent performance today, while preparing the company leaders of tomorrow .

Engaging with Employees

Building an effective, diverse and inclusive culture means ensuring that employees around the world have a voice in how our company is run and how we can make continuous improvements to our Culture of excellence .

That’s why we reach out to all employees through an annual companywide survey . The 2012 employee survey garnered an impressive 95 percent participation rate and provided an honest assessment of how we are performing . Based on employees’ feedback, we are making improvements in a number of important areas . The steady increase in the positive scores concerning the working environment and diversity and inclusion indicates that our recent initiatives in these areas, in particular, are beginning to bear fruit .

2012 cOMPanyWiDe eMPlOyee SaTiSFacTiOn (in percent)

2011 2012

employees proud to be associated with Biogen Idec

96 97

employees who would recommend Biogen Idec as a good place to work

90 96

employees who indicated that their work makes them feel like they are part of something meaningful

90 92

employees who believe that Biogen Idec supports diversity and inclusion in the workplace by recognizing and respecting the value of human differences

82 88

Overall voluntary turnover rate 5.7 6

ImpROVINg lIVES

The L ives of Our Employees

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Some themes for improvement emerged from the 2012 employee survey that we have taken action to correct . The results, for example, showed concern among employees about operating efficiency and ensuring a high-performing organization . In early 2013 we addressed that concern by launching our Sustainable Operational Agility and readiness (SOAr) initiative, an effort to evolve our operational model (see page 43 for details) .

Another concern raised by employees was that they felt under excessive pressure, driven by the demands of a growing pipeline and new drug approvals . To help alleviate some of this pressure, we instituted new work-life balance opportunities, which are described on page 21 .

Promoting Diversity + Inclusion

Through inclusion, representation and sustainable excellence, employees at Biogen Idec will have a greater opportunity to foster free thinking and engage a variety of perspectives to drive creative outcomes . Additionally, we foster good leadership practices and continue to be an employer of choice and desirable place to work .

Driven by an employee leadership movement, Diversity + Inclusion efforts have become a key component of Biogen Idec’s culture . Therefore, employees are at the center of all programming with initiatives that are primarily designed for and by our own volunteers .

• The Diversity + Inclusion Strategic Council (DISC) is a group of 16 council members representing each business area with the purpose of setting the overall strategy and approach on D+I as well as advising on implementation . In 2012, DISC members focused on creating a five-year plan to leverage diversity globally .

• The employee resource networks (erns) are employee-driven affinity groups and workplace innovation incubators advancing inclusion by and for employees at Biogen Idec . examples include Women’s Innovation network (WIn), reachOuT, multi-Cultural network, uS Armed Forces veterans Initiative and more .

Our leaders support and promote participation at all levels by identifying people within their organizations who might benefit from big and small roles in our efforts . They also demonstrate commitment by participating and encouraging others to join . Together, we all make Diversity + Inclusion a practice rather than a concept by respecting and embracing each other’s differences . We also emphasize welcoming people and encouraging them to be their authentic selves .

Our Culture of excellence embraces diversity in all its forms, believing that each individual has the right to achieve their full potential . Biogen Idec is the place for all qualified applicants and strives to provide equal opportunity for development and advancement, without regard to race, color, religion, gender identity and expression, national origin, age, disability, veteran status, marital status or sexual orientation .

DiVerSiTy aT BiOGen iDec

Women in Global Workforce (in percent)

Minorities in U.S. Workforce (in percent)

Minorities in Management (defined as Director and above in the U.S.) (in percent)

Local Nationals (in percent)

Local Nationals in Management (in percent)

Women in Management (defined as Director and above in all locations) (in percent)

10 11 12 10 11 12

8077

45

999998

10 11 12

191416

10 11 12

272026

10 11 1210 11 12

383735

525151

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Employee Resource Networks Highlights

our empLoyee resource netWorks continue to embed and advance our vaLues throughout the company.

Women’s innovation network (Win) Biogen Idec’s first employee resource network, WIn, was launched in november 2011 . WIn’s mission is to “ensure that women are fully included, engaged and valued at all levels in all parts of the business globally as drivers of Biogen Idec’s innovation, sustainability and overall success .” Women make up about half of our global workforce and 38 percent of our management team . We believe we can do even better, and WIn is an important part of our approach . The organization and its chapters in each of our global locations are overseen by a steering committee and Diversity + Inclusion Strategic Council .

WIn, which is focused primarily on developing educational and networking opportunities for women, proactively recruits and welcomes employees of all gender identities who wish to act as allies . The network enjoys some level of participation from nearly 900 women and men from across the enterprise . In 2012, WIn launched its own mentoring program “WInning Career Connections” enrolling 400 participants and holding two Women’s Leadership Conferences, one in Cambridge and one at rTp, each exceeding 300 attendees . In addition, WIn sponsored development initiatives with Women in Bio (WIB), healthcare Businesswomen’s Association (hBA), Women in engineering Science & Technology (WeST) and Simmons Leadership Conference .

in 2012, Win launched its own mentoring program “Winning career connections” enrolling 400 participants and holding two Women’s Leadership conferences, one in cambridge and one at rtp, each exceeding 300 attendees.

reachOUT employee resource network reachOuT is our Lesbian, gay, Bisexual, Transgender, Questioning and Allies network . They are on a quest to foster workplace equality and promote an environment where individuals are valued based on their contribution irrespective of sexual orientation or gender identity . reachOuT’s main goals are to increase awareness and acceptance of the LgBTQ community within Biogen Idec, support a best-in-class working environment for LgBTQ employees with respect to both culture and policies, and exemplify Biogen Idec’s commitment to social responsibility and innovation by leveraging internal and external LgBTQ diversity .

Formed in June 2012, reachOuT counts some significant accomplishments . Among them are: successfully advocating for the company’s inclusion policy to explicitly include “gender identity and expression,” helping the company improve its rating from 15 percent to 85 percent in the Corporate equality Index (CeI) and supporting the extension of tax benefit equality for same sex couples in the united States . In addition, reachOuT sponsored several initiatives with community organizations such as gay & Lesbian Advocates and Defenders (gLAD), human rights Campaign (hrC) and prIDe Boston .

Defending Equality

In 2012, Biogen Idec continued to push for equal rights for Lesbian, gay, Bisexual and Transgendered (LgBT) people . The company has a long history of supporting workplace equality for all, and we actively practice these ideals through our policies that recognize the needs of our diverse workforce .

For example, we were one of the first and few companies to take public action both through friends of the court briefs in support of cases challenging the Defense of marriage Act (DOmA) and also to offer full-tax benefit equality to same-sex couples in the united States . These

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actions were viewed as necessary steps to alleviate the burden placed on our employees by DOmA, which we believe treats employers and same-sex couples unfairly under the u .S . tax code . Since same-sex partners do not qualify as dependents under federal law, the value of their medical, dental and vision coverage, for example, is considered taxable income . This means same-sex couples and their employers effectively pay more in taxes than in situations involving other married couples . In joining the fight, Biogen Idec lives up to its commitment to equality for all employees and will continue to offer important and industry-competitive benefits on a uniform basis .

Finding the Right Balance

Discovering and developing breakthrough therapies is hard, deliberate work . That makes it extremely important for our employees to find and maintain a sensible work-life balance . Job pressure has been a recurring theme in our recent all-employee surveys, and we have taken steps globally to relieve some of that pressure and help employees find a balance that works for them .

In 2012, Biogen Idec made a global commitment to help our team find balance in their lives and manage their energy . For example, all of our locations worldwide are assessing what a flexible work environment might look like at their facilities . Our international headquarters in Zug, Switzerland, began introducing employees to The energy project, which trains people to perform sustainably at the highest levels by more skillfully managing their energy .

Our united kingdom location kicked off a campaign to build awareness of our services that enable employees to get personal tasks done at work such as dry cleaning, fitness

activities, health checks and more . The uk team also designed and held seven workshops throughout the year to help individuals achieve a healthier balance, including ways to build resilience and mindfulness and manage time more effectively . employees also had the opportunity to attend one-on-one coaching sessions .

Providing Meaningful Compensation and Benefits

Fulfilling our company mission demands that we attract and retain the best and brightest people who share the company’s relentless pursuit in delivering meaningful and innovative therapies to patients . A central tenet to making that happen is investing in the employee experience, including offering competitively advantageous total rewards programs that enable us to “win” while leading and being progressive in areas meaningful to employees and the company .

In early 2013, in order to understand what employees value most, we conducted a comprehensive survey that directly asked employees what they preferred across an array of offerings relating to programs that support their well-being – including their health, financial, work-life balance, career and life goals . These insights have challenged our current view and assumptions of what employees value and find meaningful about our programs, and allow us to better align our efforts for the future in order to ensure our programs remain relevant and meaningful to our talent .

more information on employee compensation and benefits can be found under the Careers tab of our website in the Benefits & rewards section .

Care Deeply Day: Japan The Biogen Idec office in Tokyo encouraged employees to contribute their used books, DVDs and CDs for resale through a major secondhand retail store, with the proceeds going to Room to Read, a nonprofit organization dedicated to improving literacy and gender equality in education in the developing world. Employees packed up the merchandise, contributed funds of their own and attended a lunch-and-learn presentation by Room to Read.

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Recruiting the Best and the Brightest

To maintain our position as a best-in-class employer on the cutting edge of the biopharmaceutical industry, we need to recruit the best-of-the-best new graduates and experienced professionals .

With our range of initiatives aimed at introducing students majoring in life science and non-science to the many opportunities in the biotechnology industry, we give them the opportunity to step into the biotechnology world to gain technical expertise and understand the importance of collaboration and teamwork .

each year, Biogen Idec provides approximately 100 internship and cooperative educational experiences for college students . Our university relations programs are designed as a talent pipeline to identify bright students early in their careers . We partner with many academic institutions by building relationships with faculty, career services contacts and student organizations .

The majority of our hiring targets experienced professionals who bring a diversity of expertise to our organization from all industries and geographies . In 2012, Biogen Idec hired over 1,500 new employees globally for entry level to senior executive positions . Our hiring process includes a comprehensive interview process, which assesses candidates based on their subject matter expertise and their cultural fit with our organization .

Developing the Best and the Brightest

These are exciting times to be a part of the Biogen Idec team . As we enter an era of both near- and long-term growth, the opportunities to develop and progress are abundant . At the same time, our company must work hard to ensure that our people have the knowledge and skills they need to sustain and advance our mission . And, perhaps most important, we must make sure we have an incredibly strong pipeline of future leaders ready to step up and guide our business as we move forward .

As an organization of high performers, we believe we can continually improve and innovate by providing frequent, timely and candid feedback across the organization . We recently introduced new ways to collect and assess performance, including ways to strengthen employee accountability for demonstrating behaviors that drive our Culture of excellence .

Biogen Idec requires all employees to create a development plan to help them drive their professional and personal growth . With the help of online assessment tools that help both employees and their managers navigate the goal-setting process, employees are able to more effectively chart their path forward with the full support of their managers .

in 2012, biogen idec hired over 1,500 new employees globally for entry level to senior executive positions.

Leadership Training and Workforce Development

Biogen Idec has a number of programs in place to strengthen the skills of those who are helping to lead the company today and those who will become the leaders of tomorrow . passport to excellence, our broad-based learning curriculum, provides targeted workshops and tools for people managers to build their management skills . Our leadership development programs mAXA (management and executive Academy) and DDp (the Directors Development program) accelerate the development of key talent for future leadership roles .

Passport to excellence One of our most innovative development programs is what we call passport to excellence . Created in 2012, this global learning curriculum includes targeted workshops designed to equip all employees across Biogen Idec with a shared set of tools and learning opportunities to develop behaviors needed to achieve a Culture of excellence . Our defined curriculum includes workshops for individual contributors as well as workshops for people managers, which build and reinforce core management capabilities such as setting goals, giving feedback, developing talent and driving accountability . Also included in our offerings are workshops focused on engaging employees by connecting them to our industry, as well as business challenges and opportunities . In 2012, we held more than 250 sessions throughout the world, and more than 4,000 employees participated .

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The Directors Development Program (DDP) This 18-month global leadership development program for Senior managers and Associate Directors includes targeted training events, leadership assessments with individualized feedback, a strategic learning project and opportunities for networking with colleagues in other parts of the business . established in 2007, DDp has 103 alumni globally and currently has 57 participants who span nine business areas and 18 geographies . DDp courses include the CCL Leadership Lab, mBTI & Leading people, Interpersonal Savvy & Influence, Facilitative Leadership for Team Development, Business Acumen, project management and Innovation & Change . DDp participants spend three to four months working in global, cross-functional teams on strategic learning projects that challenge them and deepen their understanding of other areas of the business .

The Management and executive academy (MaXa) This 18-month global leadership development program is for Directors and Senior Directors who have been identified as having potential for vice president roles in the future . mAXA begins with a leadership and business simulation designed to diagnose participant development needs, provide individualized feedback and prepare them for the program . participants have opportunities for exposure across multiple business areas and build relationships with colleagues that will be invaluable to them in future leadership roles . mAXA participants also work on six-month strategic learning projects in global, cross-functional teams . In addition to the projects, their training events cover a range of topics including Leading Strategically, Leading Change, project management, Leading at my Best and Strategic Agility . We have 35 mAXA alumni around the world . Currently there are 24 participants in mAXA coming from eight business areas and seven locations .

SPOTliGhT – MaXa

Uthra Sundaram Chief of Staff for u .S . Commercial Operations 2011 MAXA Graduate

“It’s up to you to connect the dots in your competencies and leverage what you can to fill in any gaps.”

The mAXA program hones a candidate’s organizational savvy, strategic abilities and managerial competencies – something uthra Sundaram knows well as a recent mAXA graduate . As part of her training, uthra and her global team worked on an action learning project to better understand how an organization handles viral contamination risks at manufacturing sites . The team examined industry trends, what steps the company has already taken and how to coordinate conversations with the right stakeholders in manufacturing to guide them to make the right decisions to avoid recalls, outbreaks and other risks .

SPOTliGhT – DDP

Maureen Farmer mS, rD, Senior manager Patient Services Performance Effective Group, 2010 DDP Graduate

When maureen began the DDp program after three years with our company, her focus was on gaining more business acumen . DDp provided the perfect path for her to gain a greater understanding of how the business operated globally . maureen traveled from rTp to Biogen Idec locations in Switzerland and england to attend courses and training events and participate in assessments, feedback and coaching – all while managing six programs and a team of 12 employees back home .

“I learned the value of depending on one another and drawing on each member’s strengths to make the most of the action learning project.”

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Fostering a Culture of Safety and Health

At Biogen Idec, we care deeply about providing a safe and healthy work environment in which employees feel physically secure . This culture enables our employees to focus their energies more fully on what matters most: improving the lives of patients with unmet medical needs .

Senior leadership meets regularly to review environment, health, safety and sustainability performance; discuss compliance and best practices initiatives; and recognize employees for their contributions . This level of commitment promotes a preventive strategy focused on leading performance indicators .

To manage health and safety-related incidents and events, Biogen Idec utilizes a Web-based database . The database streamlines the process for notifying superiors, assigning corrective actions and creating an incident log, which is an account of all work-related injuries and illnesses . This system improves our ability to track trends, such as types of injuries and where they occur, identify hazards before an incident occurs and allows us to be more proactive in our health and safety program management . We’re proud to have one of the industry’s best health and safety records, with a Days away case rate of 0.12.

U.S. 2012 Carolina Star AwardThe Carolina Star is the most prestigious safety recognition awarded by the north Carolina Department of Labor . It’s north Carolina’s version of the nationally recognized voluntary protection program (vpp), which is sponsored by the u .S . Occupational Safety and health Administration (OShA) and designed to improve workplace safety .

In 2012, Biogen Idec became one of only two biotechnology companies in the state to receive this safety certification . Labor Commissioner Cherie Berry presented the Carolina Star flag and certificate to the rTp site at an award ceremony in February 2013 . As part of the selection process, program assessors spent three full days at our rTp site, entering all of our buildings and work areas to witness activities and talk with employees about safety . In all, they spoke with about 80 employees and they got the same message from each: safety is a core value at Biogen Idec . Companies that qualify for the award have exemplary workplace safety and health programs .

“i am so proud to present this award to biogen idec and, if in the future my children or grandchildren should be fortunate enough to become part of the biogen idec team, i would feel honored. because i know that everyone here would take care of them and see that they came home safely to me every night.” – North Carolina Labor Commissioner, Cherie Berry (on right) with Biogen Idec RTP General Manager, Machelle Sanders

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the employee canteen at our hillerød, denmark, location offers healthy, varied and seasonal food from local suppliers, with a focus on organic farming.

Promoting Health and Wellness

In addition to promoting workplace safety, we strive to safeguard the health and well-being of our employees through education, tools, resources and programs . These include annual wellness fairs, health-centric “lunch and learns” and incentives to take personal health assessments . Individual sites also host their own programs and events . Some examples include:

• A new, cross functional, health and wellness team in rTp that focuses on impacting the site’s health survey statistics with targeted programs including weight loss, fitness and personal nutritional counseling .

• The employee canteen at our hillerød, Denmark, location offers healthy, varied and seasonal food from local suppliers, with a focus on organic farming . The facility also offers on-site physiotherapy and ergonomic services, flu shots and a yearly health check to engage employees in pursuing healthier lifestyles .

• In 2012, our Badhoevedorp, netherlands location hired a trainer to run with and train employees two times per week to stimulate healthier lifestyles .

• At our major u .S . and international locations we hold benefits fairs at which employees have their health and fitness levels measured .

Improving Employee Safety in Our Manufacturing Operations At Biogen Idec, we manufacture our therapies in large batches . As part of our routine activities, technicians must detach and reattach the air supply to multiple valves that control the bioreactors used in our batch manufacturing processes . In 2012, as part of a pilot project, we rerouted the air supply lines to a centrally located point, so that they can all be controlled from one panel . This change not only reduces the potential for injuries that could occur due to exposure to energy sources, but also reduces the time needed to shut down and isolate a reactor by 90 percent . Based on the results of this pilot, we are expanding use of centralized panels in 2013 .

Realizing Zero Lost Time Accidents In 2012, Biogen Idec executed some of our most ambitious construction and capital improvement initiatives ever – more than 250 projects totaling more than 750,000 subcontractor man-hours across our rTp, Cambridge and hillerød locations . All of these projects were done with zero Lost Time Accidents and only three minor recordable injuries . Such a low number of incidents represents a best-in-class safety record when compared with industry benchmarks .

eMPlOyee healTh anD SaFeTy

2010 2011 2012

Days Away Case rate 0.10 0.14 0.12

Accidents per million miles (u .S . only)1

9.62 9.95 9.57

(Injury and illness cases involving days away from work)

1 In 2012, we identified an error in our formula for determining the accidents per million miles rate. As a result, in 2012, we recalculated the rate for 2011.

biogenidec.combiogenidec.com2626

Just as Biogen Idec seeks to have a positive impact

on the lives of our patients, employees and

communities in which we operate, we also strive to

minimize our impact on the environment . And we

bring to that task the same spirit of innovation and

citizenship that’s at the heart of who we are as a

company . We continuously work to identify new

and unique ways to quantify, understand and

manage our environmental impacts . This relentless

pursuit has helped us to rethink the way resources

are used at our company .

The Biogen Idec Corporate Sustainability Council,

headed by our CeO, is responsible for setting our

company’s sustainability vision and strategy, which

includes our environmental strategy . We also

maintain an environmental, health and Safety

organization and monitor our performance using

our environmental management System .

Reth ink ing Resources

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Focusing on What Matters Most

our strategic approach to environmentaL sustainabiLity Focuses on three key areas: Water, energy and materiaLs.

In 2009, we set a long-term goal of reducing our overall environmental footprint by 15 percent by 2015, compared to 2006 levels . To ensure that our approach accurately reflected the needs and impacts of our business, we established a risk-Weighted environmental index to track our progress against this goal . We reached our 2015 goals in 2012 and will work to continue this level of environmental performance as we look to establish new goals for 2020, which we will outline in our next Citizenship report .

Our risk-Weighted environmental Index measures our environmental footprint in four key areas: water use, energy use, greenhouse gas (ghg) emissions and solid waste to landfills . Since water is a key resource in the manufacture of our products and is scarce in some of the regions where we operate, water use is weighted most heavily . In meeting our 2015 environmental goals, we reduced our footprint by 18 percent in 2012 . When Biogen Idec’s rapid growth over the past few years is taken into account, we have actually reduced our footprint by 40 percent compared to 2006 . Our progress in achieving zero waste to landfill status in 2012 was a major contributor to meeting our goals ahead of schedule . We are also pleased to report that Biogen Idec did not

have any significant fines or nonmonetary sanctions for noncompliance with environmental laws and regulations in 2012 .

Strategic Pursuits

We support the achievement of our environmental goals through a variety of avenues, including collaboration with other companies, pursuit of best practices like LeeD certification and the adoption of internationally recognized management systems . We also look to our employees as a source of best practices, and we recognize and reward them for their ideas .

iSO 14001 initiative In 2011, hillerød, Denmark, became our first manufacturing facility to receive ISO 14001 certification . ISO 14001 is a voluntary, internationally recognized standard that requires companies to continually improve their environmental performance by systematically setting goals and tracking performance against those goals over time . hillerød’s certification is part of a larger corporate initiative to earn this certification for all of our manufacturing facilities within the next few years . hillerød is also OhSAS 18001 certified for its occupational health and safety management system .

100% 97.8% 97.8%82.4%

51%

06 10 11 12

riSK-WeiGhTeD enVirOnMenTal inDeX

(20

06

Bas

elin

e 10

0%

)

Energy Use

GHGs Emitted

Water Used

Waste to Landfill

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Care Deeply Day: Switzerland At our international headquarters in Zug, Care Deeply Day saw more than 80 volunteers participate in a number of community activities, including volunteering at a home for seniors and at an animal shelter, participating in an MS patient outing and collecting, packing and sorting food for Pfarrer Sieber, a foundation that assists disadvantaged people.

Sustainability Leadership Awards The annual Biogen Idec Sustainability Leadership Awards honors employees around the world who have implemented projects aimed at reducing our environmental impact . In 2012, four teams and one individual received these awards for their ambitious and innovative approaches to helping us meet our environmental goals:

• In Cambridge, mass ., improvements in the production process for one of our therapies in a phase 2 clinical trial reduced our use of water by 37,000 liters and chemicals by 29,000 kilograms .

• In hillerød, Denmark, one of our colleagues optimized the air change rates for the heating, ventilation and air-conditioning system in our large-scale manufacturing plant, saving about $100,000 annually, while reducing energy use .

• In maidenhead, united kingdom, a new evolve energy partnership and employee environmental impact awareness campaign enabled that office to reduce its energy use by 36 percent .

the annual biogen idec sustainability Leadership awards honors employees around the world who have implemented projects aimed at reducing our environmental impact.

• In research Triangle park, n .C ., a group of employees supported the introduction of disposable bag technologies at our new hybrid manufacturing facility . The use of these bags decreases the amount of water and chemicals needed to clean our therapy batch mixing vessels . The disposable bag system could result in as much as a 90 percent reduction in water use and a 30 percent decrease in energy use .

• In Zug, Switzerland, an employee green Team came together to launch the “go green, Think green, Act green!” initiative, which encourages colleagues to improve their environmental habits and share ideas for making environmental improvements throughout the office .

Looking Beyond Our Walls In 2012, we embarked on an initiative to gauge the overall environmental impact associated with the production and distribution of our products . We partnered with a third-party consultant to evaluate this impact throughout our value chain, using an economic input/output model .

With that in mind, we hope to identify ways to help reduce the impact of our entire value chain with our critical suppliers .

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SPOTliGhT – LEED Gold Certified Building

In early 2013, Biogen Idec dedicated Building 26, our new 190,000 square foot facility in research Triangle park, n .C . The building received LeeD gold certified status in may 2013 . With more than 1,000 people on site, we worked to design a space that is both functional and efficient .

Water reclamation – cistern collection SystemThe building features a 100,000 gallon cistern to collect rainwater for irrigation . The new reclamation system will meet the average demand for irrigation during the month of July and significantly reduce the amount of potable water used for irrigation . The location of the cistern maximizes the amount of rainwater collected, capturing roof drainage from two nearby buildings, as well as the run-off from surrounding landscaped areas .

reduced energy consumptionBuilding 26 uses a variety of cutting-edge technologies to reduce energy use . For example, the facility features a high-efficiency hvAC system that uses 25 percent less energy and no water . Automatic window shades track the sun and adjust themselves accordingly, minimizing solar heat gain . Additionally, lights are locally controlled to enhance our work environment and automatically shut off in unoccupied areas and in areas with sufficient natural sunlight . Overall, the facility will use about 25 percent less energy than a traditional building of similar size .

recycled and locally Sourced MaterialsThe building contains a high percentage of construction materials derived from recycled content, wood from certified forests and other materials originating in north Carolina . Sourcing locally not only reduces the environmental impacts associated with transporting products, but helps support the local economy, as well .

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RETHINkINg RESOuRCES

Water Use

Water is a vitaL resource For creating our therapies, Which makes it our most signiFicant environmentaL impact.

Water serves a critical role throughout our operations, including incorporation into our products, sterilization and cleaning of equipment, cooling towers, irrigation and domestic use .

We try and make sure every drop counts, working to conserve and recycle water whenever possible . From more efficient irrigation and water reclamation, to optimizing the water used in our cooling towers and hvAC systems, we’ve been finding increasingly innovative ways to conserve this valuable resource . In 2012, we reduced our water intensity by 60 percent compared with our 2006 baseline, cutting our annual water use to just above 555,540 cubic meters .

Reducing water use in our manufacturing facilities:

Research Triangle Park, N.C.Using reclaimed water for irrigation reclaimed water is wastewater that’s run through an advanced water treatment process . While not drinkable, it’s safe for such purposes as irrigation . In 2012, our rTp site started using reclaimed water supplied by the nearby City of Cary for irrigation, reducing our potable water consumption . paired with the newly installed Building 26 cistern collection system, the use of reclaimed water for irrigation at our rTp campus will offset the need for 2 million gallons of water annually .

Flexible volume manufacturing Over the past several years, we have completed a flexible volume manufacturing (Fvm) project to retrofit a facility on our rTp campus .

This facility uses presterilized bioprocess bags instead of the stainless steel vessels in which we traditionally produced therapies, thus avoiding the need for cleaning and sterilizing between uses . As a result, we use up to 90 percent less water and less energy, while also reducing the risk of foreign matter contamination .

For the Fvm retrofit, Biogen Idec received the 2013 Facility of the year award, which is sponsored by the International Society for pharmaceutical engineering, Pharmaceutical Processing magazine and InTerpheX, one of the industry’s leading trade events . This award recognizes pharmaceutical manufacturing projects that use cutting-edge technology to improve efficiencies and reduce production costs for medicines .

For the Flexible volume manufacturing retrofit, biogen idec received the 2013 Facility of the year award.

Cambridge, Mass.hVac condensate water reclamation system Two of the main buildings on our Cambridge, mass ., campus have hvAC systems that produce a large quantity of clean condensate water, especially during the summer season . This water has traditionally been discarded . A new series of hvAC water reclamation systems will be coming online in the summer of 2013 to collect the condensate water for reuse in the building’s cooling towers to further reduce our consumption of municipal water . Building on a successful initiative completed a few years ago, we anticipate this system will annually harvest and recover 1-2 million gallons of clean water .

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RETHINkINg RESOuRCES

Energy Use and Emissions

We’re dedicated to reducing the amount oF energy We use, to both save money and LoWer our greenhouse gas (ghg) emissions.

Like any manufacturer with multiple locations, Biogen Idec uses a good deal of energy to power our processes, cool and light our facilities and run our computers and other technologies .

Through more efficient technologies, employee-driven initiatives and the purchase of renewable energy credits, we’re able to more strategically manage our emissions and energy use . In 2012, we realized more than $6 .8 million in energy savings and decreased our energy intensity by nearly 8 percent compared with 2011 . We’ve also reduced our ghg emissions intensity by 47 percent against our 2006 baseline . As part of our commitment to reducing ghg emissions, Biogen Idec completes the annual investor’s survey for the Carbon Disclosure project .

Some of the ways in which we reduce energy use and emissions at our manufacturing facilities:

Research Triangle Park, N.C.Glycol chiller plant optimization At our rTp data center, it’s critical to maintain temperatures that allow for the proper operation of our IT equipment . To this end, we are installing a new state-of-the-art 200-ton glycol chiller, chilled water pump controls and energy-efficient pumps with variable frequency drives . These changes will improve plant operations by matching cooling capacity to the load requirements, increasing efficiency and reducing both operating costs and our environmental impact . We estimate that on an annual basis we will save 140,000 kWh of electricity – equating to about $30,000-$45,000 in electricity cost savings – and eliminate approximately 100 metric tons of CO2e emissions .

electric vehicle (eV) charging stations We have installed 10 electric vehicle charging stations at our rTp campus for employee use, supporting them in decreasing their personal carbon footprint by driving evs . For employees who want to buy an ev, through a

We have installed 10 electric vehicle charging stations at our rtp campus for employee use, supporting them in decreasing their personal carbon footprint by driving evs.

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partnership with Advanced energy we are able to help them receive $15,000 in federal and state incentives to purchase a nissan LeAF, in exchange for participating in Advanced energy’s pev Consumer usage Study .

Supporting ev adoption and providing charging stations is a critical step in helping build the necessary infrastructure to support widespread adoption of evs and reduce our dependence on fossil fuels .

the optimization of our hvac system at our hillerød location has reduced energy consumption by 18 percent, saving $500,000 over the last two years.

Cambridge, Mass.condenser water pump retrofit Building 2 on our Cambridge campus is a manufacturing facility that requires year-round circulation of condenser water to cool its refrigeration equipment . Well-suited for hot summer months, the condenser water pumps unnecessarily ran at full speed during more temperate months . To optimize our energy use, we retrofitted the pumps with variable frequency drives (vFDs) . These vFDs allow us to save energy by matching the use of the water pumps to the actual current needs of

the system . The project yielded nearly 300,000 kWh in energy reductions for the year, saving more than $40,000 . The project’s return on investment was swift – just a little more than eight months .

laboratory retrofit project We’ve begun the process of giving a facelift to Building 6, one of our older Cambridge laboratory facilities . The work includes an upgrade to the hvAC system on the building’s fourth floor, the first step in a multiyear renovation to modernize these vital laboratories . This upgrade will allow the floor’s hvAC system to adjust and adapt to better meet the actual needs of the laboratories . We expect this specific portion of the project to reduce the air demand by 40 percent and reduce operating costs by about $200,000 annually .

Hillerød, Denmark Distribution system optimization Our large-scale manufacturing facility in hillerød uses both chilled water and glycol for building temperature control . In 2011, we increased the efficiency of these systems by adjusting the pump speeds and installing more energy-efficient pumps . Through these modifications, the company saved more than $200,000 and 1,200,000 kWh over the past two years .

air exchange reduction Optimizing the hvAC system within our hillerød location has resulted in lower air exchange rates throughout the plant, cycling fresh air into the building more efficiently and less often . In some areas we were able to reduce the air exchange rate from 10 to six times per hour while still maintaining normal levels of air flow . In addition to being a breath of fresh air, this optimization uses 18 percent less energy, saving approximately $500,000 over the last two years .

SPOTliGhT – COgenerATIOn pLAnT WInS prOJeCT ChAmpIOn AWArD

The northeast Clean heat and power Initiative (neChpI) recently honored our Cambridge cogeneration plant with its project Champion Award for 2013 . The award recognizes Biogen Idec’s promotion of policies and practices that generate clean, efficient and environmentally friendly heat and power .

Located beneath our Building 6, the cogeneration plant provides reliable, highly efficient steam and electrical energy to the Cambridge campus . So reliable, in fact, that when the City of Cambridge experienced a citywide electrical failure, critical operations at Biogen Idec were

unaffected . And the plant is just as efficient as it is reliable, reducing our annual energy costs by approximately $3 .2 million and decreasing ghg emissions by 25,000 metric tons annually .

The award recognizes Biogen Idec’s promotion of policies and practices that generate clean, efficient and environmentally friendly heat and power.

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RETHINkINg RESOuRCES

Mater ia ls and Waste

We take managing the byproducts oF deveLoping our therapies just as seriousLy as creating the therapies themseLves.

To help minimize our waste stream, we employ a variety of approaches . One of our primary methods for managing byproducts is to take advantage of the latest waste-to-energy technologies, which not only divert waste from landfills, but also supplant some of the need to burn natural resources to create energy . We also work with other companies to compost foodservice waste and recycle previously discarded production components .

Through innovative approaches such as these, we’ve been able to reduce our solid waste intensity by more than 93 percent compared to our 2006 baseline .

Zero Waste to Landfill Status Achieved Companywide

In march 2012, we achieved virtually zero waste to landfill status companywide through a combination of avoiding, reducing, recycling, composting and converting waste into energy . Collaboration and innovation across our global operations were key to making this possible .

For example, we now strive to purchase materials with minimal packaging from suppliers and continue to expand our recycling and composting efforts through unique partnerships and by actively promoting internal changes . Waste from our Cambridge and hillerød locations that cannot be recycled or composted is disposed of via state-of-the-art waste-to-energy processes . We began a similar waste-to-energy disposal program at our rTp campus in April 2013 .

Four Days of Caring Deeply: Brazil Over the course of four days, four different teams lent a helping hand to community organizations in Rio de Janeiro, Paraná and São Paulo. The teams were able to offer essential products to these organizations, which included an asylum, a daycare center and a community vegetable garden. Our team engaged their families in the Care Deeply spirit, as well; two employees’ sons joined different teams to help make a difference in their community.

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Composting Wastewater Byproducts

Our manufacturing processes in many cases produce nutrient-rich byproduct solutions . These byproducts traditionally have been handled as hazardous waste, but we have taken innovative steps to safely repurpose them .

We work with mcgill environmental Systems, an innovative compost vendor, to test and refine these solutions to meet the requirements to be used as Class A exceptional Quality compost, per u .S . epA standards . As a result, from 2009 through 2012 we diverted more than 4,800 metric tons of waste and saved approximately $500,000 .

We are beginning to take a similar waste-to-compost approach at our other facilities . Our hillerød location entered into an agreement that processes an ammonium sulfate solution – a byproduct of therapy production . About 180 tons of this byproduct were collected and sold primarily as a fertilizer to customers in south Sweden . Our goal going forward is to develop the market locally, and we’re already seeing signs of progress: ammonium sulfate has successfully been registered as a fertilizer product in Denmark .

Partnering with Our Neighbors

We’re always looking for new and innovative partnerships to further support our sustainability goals . And sometimes we don’t have to look far at all . We partnered with another biotech company with operations in rTp to develop an internal foodservice waste composting program that promotes composting through a mutual foodservice contract with Aramark . Since 2008, we have composted more than 75 metric tons of foodservice waste that would have otherwise found its way into landfills . Foodservice waste is an essential component of successful composting, as it contributes valuable nutrients to the soil and supports beneficial microbial growth in compost . A local commercial food waste recycler uses our foodservice waste to manufacture a line of branded, nutrient-rich compost products .

EcoSharps™ Program for Patients

The patient is always front-of-mind at Biogen Idec, even when it comes to how we think about our environmental impact . In partnering with ecoSharps,™ we’ve made the disposal of medical waste safer and easier for patients using AvOneX, our front line therapy for mS . patients

self-administer AvOneX with syringes in their own homes, disposing of used injection materials in a puncture-proof container provided by ecoSharps . materials are then returned via prepaid package to ecoSharps to be sterilized, broken down and repurposed for other uses .

Biogen Idec/EMD Millipore Recycling Program

In the biopharmaceutical business, recycling materials can be a real challenge . Our products contain a mix of materials that not all recycling outlets will accept, and some waste requires special handling, as it can contain biologically hazardous materials .

In 2012, our Durham, n .C ., facility participated in a four-month pilot recycling program developed by emD millipore . ultimately a success, the goal of the pilot was to determine if materials such as filters, tubing, bag assemblies, pallets and packaging could be effectively collected and recycled .

After disassembling products into recyclable and nonrecyclable materials, more than 18,000 pounds of materials were diverted from landfills and recycled . The remaining material replaced coal as an alternative fuel source in a cement kiln, reducing the need for fossil fuels .

Collectively, the program reduced more than 80,000 pounds of CO2e over the four-month period . If the program is scaled to a full year, we expect that Biogen Idec will recycle more than 100,000 pounds of waste and reduce associated CO2e emissions by more than 240,000 pounds . given this success, we will move forward with this initiative in 2013 .

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enVirOnMenTal PerFOrMance1

2006 Baseline 2010 (%) 2011 (%) 2012 (%)

risk-Weighted environmental Index 100 97.8 97.8 82.4

energy use 24.9 28 27.3 26.7

ghgs emitted 24.9 25.2 24.6 24.7

Water used 35.2 32 31 29.1

Waste to Landfill 15 12.7 14.3 2

risk-Weighted environmental Index normalized by revenue 100 59.8 55.4 40.2

2006 2010 2011 2012

energy use (gas, oil and purchased electricity in mmBTus) 1,029,436 1,155,706 1,128,822 1,102,430

energy Intensity (mmBTus/million $ revenues) 383.7 245.0 223.6 200.4

renewable energy Credits (kWh) N/A 2,522,185 4,014,403 33,000

renewable energy (% of total energy intensity) N/A 0.7 1.2 .22

greenhouse gases (ghgs) emitted (gas, oil, purchased electricity, u .S . fleet and business travel in metric tons CO2e)

100,130 99,937 99,150 99,097

greenhouse gases emission Intensity (metric tons/million $ revenues) 37.2 22.8 21 18

Scope 1 and 2 (gas, oil, purchased electricity, u .S . fleet in metric tons CO2e) 89,075 89,076 85,910 84,895

Scope 1 (metric tons CO2e) 38,934 49,160 46,545 45,588

Scope 2 (metric tons CO2e) 52,871 39,916 39,396 39,307

Scope 3 (business travel in metric tons CO2e)2 8,325 10,862 13,240 13,183

Water use (cubic meters) 671,871 610,128 591,444 555,541

Water Intensity (cubic meters/million $ revenues) 250 129 117 101

reclaimed/reused Water (%) 10 23 21 20

Solid Waste to Landfill (metric tons)3 331 280 317 44

Solid Waste to Landfill Intensity (metric tons/million $ revenues) 0.12 0.06 0.06 0.01

Waste Composted (metric tons) not available 136 969 1,650

Waste recycled (metric tons) not available 1,361 1,082 804

Waste to energy (metric tons) not available 437 514 592

1 In 2012, we used U.S. EPA eGrid emission factors for our GHG emission calculations instead of U.S. Energy Information Administration emissions factors in the United States. In Denmark, we used emissions factors provided by the utility serving our facilities. As a result, we have adjusted our GHG data points going back to 2006 – all changes have been captured above.

2 2006 baseline data is extrapolated based on data from prior years.

3 Data includes solid waste from our routine operations only. Waste from construction and other contractor activities is not included.

biogenidec.combiogenidec.com/CR201236 biogenidec.com/CR201236 biogenidec.com/CR201236

The long-term success of Biogen Idec depends

not only upon the value we create for our

company, but how we extend it to others . It

requires an inspired approach to engaging with

stakeholders, advocating for sensible public

policy, entering new markets, managing

responsibly and navigating the changing

healthcare landscape .

Creat ing Va lue

biogenidec.com36

37 biogenidec.com

Lisa sindoni gives back to others as a mentor in the biogen idec ActiveVoices™ program, a mentoring program in which a newly-diagnosed patient is teamed with a “veteran” multiple sclerosis patient for support and assistance.

CRE aTINg ValuE

Engaging Act i ve ly

Stakeholder Engagement

engaging with investors There are a number of ways we engage and communicate with investors regarding Biogen Idec’s corporate citizenship efforts . For the past three years we have provided detailed information to robecoSAm and the Dow Jones Sustainability Index (DJSI) – two of the most prominent entities that track and evaluate the performance of the world’s leading companies against economic, environmental and social criteria . As a result, Biogen Idec has been included in the prestigious DJSI north America index for the past three years . We also engaged robecoSAm to review Biogen Idec’s corporate citizenship practices and compare them with our industry peers .

In 2012, we also participated in the healthcare working group of the Sustainability Accounting Standards Board (SASB) . This nonprofit organization is engaged in the development of industry-specific sustainability accounting standards that will be suitable for disclosure in standard filings such as the Form 10-k and 20-F .

engaging with Patients As part of Biogen Idec’s commitment to improving the lives of the patients we serve, we engage with them one-on-one, through advocacy groups and through our own patient assistance programs . We provide support services that help patients cope with the challenges of living with their diseases, as well as resources to help them obtain free or discounted medicines . And this suite of services evolves based on feedback from patients .

In 2012 we sponsored our 8th Annual ActiveVoices Advocates Conference, which featured nearly 100 speakers from throughout the united States . ActiveVoices is our mentoring program that pairs newly diagnosed mS patients with “veteran” patients for support and assistance . We also had a significant presence at the 64th Annual meeting of the national hemophilia Foundation (nhF), which helped us build new relationships, strengthen existing ones, and open avenues for future engagement and dialogue .

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biogen idec is an active participant in the pharmaceutical supply chain initiative.

engaging with employees Listening to our employees doesn’t just enhance their satisfaction and engagement; it’s critical to the success of our company . We solicit feedback through an annual companywide employee survey, periodic roundtables and an annual employee meeting . But we do more than just listen . We act upon their suggestions and concerns . Significant efforts that flowed directly from this ongoing conversation include our Diversity + Inclusion initiative page 19 and our SOAr operational model evolution page 43 .

engaging with healthcare Professionals Biogen Idec surveys healthcare professionals periodically to make sure we’re providing information that best meets their needs . As an example, through these surveys, we learned that physicians prefer to receive monthly updates on TYSABrI, a treatment for mS that has been associated with a rare but potentially serious side effect . As a result, we’ve begun providing monthly updates to patients or physicians who request them . We also survey healthcare professionals to determine their satisfaction with our TYSABrI communications, both in terms of transparency and usefulness .

engaging with industry Biogen Idec engages in a number of industry forums designed to further incorporate citizenship and sustainability . We are a member of the global environmental management Initiative (gemI), an organization of leading companies dedicated to fostering excellence in sustainable business practices . We’re also an active participant in the pharmaceutical Supply Chain Initiative, which supports better social, economic and environmental outcomes for all those who make up the pharmaceutical supply chain .

In addition, we’re active members of a number of organizations that share best practices within and outside our industry, including:

• Biopharma ehS Forum

• Biotechnology Industry Organization (BIO)

• Corporate responsibility Officer Association (CrO)

• Directemployers Association

• pharmaceutical research and manufacturers of America (phrmA)

engaging with Government leaders Biogen Idec’s CeO and its evp research and Development provided input to the president’s Council of Advisors on Science and Technology, better known in public policy circles as pCAST . Our evp research and Development served as a formal member of the Council’s pCAST Drug Innovation Invited experts . In 2012, Biogen Idec was one of three corporate supporters of the FDA-Aspen Institute initiative, national Strategy for Biomedical Innovations, which will integrate academia, industry and government to align scientific policy and priorities with society’s health needs .

Care Deeply Day: France The French team developed a two-day, seven-city tour of meetings that brought neurologists and MS nurses together with families whose loved ones were living with MS. Using the contacts and resources of nearly every internal department, the team built a program that it plans to expand into 2013 and provide as a template to other offices. The events brought together 40 neurologists and helped to create meaningful connections among the more than 1,000 patients and families that attended.

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Fostering Responsibility Throughout the Supply Chain

providing effective treatments for patients depends on the quality and availability of the materials used in the manufacturing process . At Biogen Idec, we work diligently – both within our company and in collaboration with others – to help maintain the integrity of the pharmaceutical supply chain .

All of Biogen Idec’s suppliers are subject to our Code of Business Conduct and must meet rigorous compliance standards for quality, as well as comply with applicable external laws and regulations .

The majority of our suppliers are located in the united States and europe, which mitigates many of our supply chain risks . nonetheless, in 2012, we intensified our focus on implementing a proactive supply chain risk management process . As part of this process, we are developing global maps that depict supplier locations, identifying potential risks for the relevant geographic areas and creating mitigation plans . In 2011, we piloted a self-assessment survey with a number of our suppliers, which included questions on environmental, health, safety, sustainability and security . We are using this information to better understand individual supplier practices .

Pharmaceutical Supply chain initiative (PSci) pSCI is a group of 14 major pharmaceutical companies that share a vision of better social, economic and environmental outcomes as documented in the pharmaceutical Industry principles for responsible Supply Chain management . The initiative is being facilitated by Business for Social responsibility (BSr) . Biogen Idec is an active participant in pSCI, and supports the principles, which align with international frameworks and standards, including the united nations global Compact and the International Labour Organization . pSCI’s initiatives include shared audits of major suppliers conducted by third parties under pSCI direction . This approach yields a broad array of critical information about the supply chain and streamlines the process for both pharmaceutical companies and suppliers .

In 2012 pSCI completed 10 shared audits, three of which covered Biogen Idec suppliers . Audit results are available through the pSCI Online Supplier Directory, which gives pSCI members quick and easy access to audit reports and documents . pSCI also expanded its resources for building supplier capacity by creating a robust online resource library .

Supplier Diversity Our commitment to diversity and inclusion extends beyond our walls to our suppliers . At Biogen Idec, we are committed to sourcing from diverse and locally owned small businesses, including those owned by minorities, women, veterans and service-disabled veterans, among others . Our relationships with these suppliers are good both for our business and our communities . In 2012, we spent $110 million with diverse suppliers .

Public Policy Support

As a company dedicated to improving the lives and health of patients, Biogen Idec must work within a system that is heavily influenced by government policies . It is critical to understand and help to shape a system that is conducive to our mission of delivering innovative therapies to people with serious unmet medical needs . To this end, Biogen Idec participates in public policy discussions that we believe benefit patients and foster innovation and growth in the industry .

Some of the public policy debates in which we’re engaged in 2012 and 2013 include:

• healthcare reform Implementation

• prescription Drug user Fee Act (pDuFA)

• Tax reform

• newborn Screening

• Defense of marriage Act (opposing)

Information on our public policy engagement can be found under the Corporate Citizenship tab of our website in the public policy section .

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CRE aTINg ValuE

Planning Strateg ica l l y

Patient Access to Treatment and the Economics of Healthcare

patient access to treatment is a compLex subject that encompasses many interreLated dimensions. drug discovery and deveLopment, reguLatory considerations and costs have Long been key drivers in determining the access patients may have to LiFe-aLtering treatments.

more recently, in the face of global economic concerns, payers such as governments and insurance companies are increasingly requesting evidence of value and health economic tools to determine how best to allocate finite financial resources .

The issue is even more complex for drug companies creating therapies for diseases prevalent in developing countries, where patient access to treatment may be impeded by physical infrastructure, lack of awareness and, in some cases, official corruption . These factors have been less of a consideration for Biogen Idec, as our drug portfolio and pipeline have traditionally focused on conditions more typically found in developed nations .

Drug Discovery and DevelopmentDiscovery and development are the first steps toward providing patients with the therapies they need . This is a long and expensive proposition . On average, only one in every 10,000 compounds initially identified in the lab ultimately gets approved for use . According to the Tufts Center for the Study of Drug Development, it takes about $1 .2 billion of investment and over 10 to 15 years to introduce one new biotechnology-based drug .

in 2012, biogen idec provided patients with more than $349 million in financial support through our free drug program, copay assistance and charitable donations.

In support of our mission to address unmet medical needs, Biogen Idec devotes about 20 percent of our annual revenue to the research and development of innovative therapies . Fulfilling our mission over the long term, however, requires us to recoup our investments and provide shareholders with attractive returns . To do that, we need to charge a fair price for the therapies we bring to market . That said, it’s our firm belief that no patient should be denied access to our treatments due to financial limitations . That’s why we have one of the best patient assistance programs in the industry . In 2012, Biogen Idec provided patients with more than $349 million in financial support through our free drug program, copay assistance and charitable donations .

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Care Deeply Day: Hungary The only MS rehabilitation center in Hungary is more than 155 miles from Biogen Idec’s office in Budapest. The Budapest team made the six-hour trip to the center with the intent of cleaning the windows that surrounded the center’s therapeutic swimming pool. Once on site, the team was so inspired by the impact their simple gesture had on the center’s employees and patients that they ended up cleaning all the windows in the facility.

Regulatory ConsiderationsTo ensure that new products are safe and effective, all new therapies undergo a stringent process of preclinical and clinical evaluation . This is regulated in the united States by the u .S . Food and Drug Administration (FDA) and in the european union by the european medicines Agency (emA) . Other countries have similar agencies .

A transparent and predictable regulatory environment is in the interest of both patients and the healthcare industry . In many cases, however, the timeline for drug approvals has been unpredictable, hindering our industry’s ability to deliver new treatments to the patients who need them .

For some time, the FDA has offered Accelerated and Fast Track regulatory pathways for serious conditions, such as cancer, or for conditions for which there is a lack of treatment . This expedited approach gives patients with life-threatening conditions earlier access to potentially life-saving treatments . extending this type of approval to other disease areas, while maintaining stringent safety standards, could benefit many more patients . In the united States, the 2012 reauthorization of the prescription Drug user Fee Act (pDuFA) should help in this regard . The pDuFA authorizes the FDA to collect user fees from companies that develop prescription drugs in order to fund the review and approval process .

Another regulatory avenue for speeding patient access to treatment is a concept known as “global expanded Access,” which encompasses a variety of regulatory approaches that can offer patients early access to new therapies while clinical trials are still progressing . Such patients typically have few if any alternative therapeutic options . global expanded Access programs (eAps) are structured programs that comply with country-specific

regulatory policies to provide ethical access to medicines for unmet medical needs . An eAp can be put in place on a patient-by-patient basis (per a physician request) or for a group of patients .

There are a variety of reasons why therapies may qualify for expanded access, including:

• Approval pending by a regulatory body

• Approval in one country but not another

• Discontinuation of the therapy in a particular market

• global discontinuation of alternatives to the therapy

When it comes to any type of investigational therapy, Biogen Idec’s priority is to achieve a status for the drug that allows all eligible patients to have safe and equitable access to treatment . In most markets around the world, that means gaining regulatory approval as quickly and safely as possible .

With this in mind, we continue to make every effort to create a fair expanded access program that does not interfere with the clinical development plan . Whatever the final details of such a program may be, one thing is certain: Biogen Idec will only make a product available after there is supporting evidence that the drug is safe and effective .

In 2012, Biogen Idec approved a comprehensive global policy on expanded access, which outlines our commitment and standards to ethically address requests for access to our investigational and approved products . As part of this policy, employees who are involved in eAps will be required to complete specialized training .

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Health EconomicsThe prescription drug marketplace differs from other industries in at least two important ways: the person choosing the product, the physician, is not the person paying for it; and the person benefitting from the product, the patient, often pays just a fraction, or none, of the direct cost . The bulk of treatment costs, then, are borne by payers such as governments and other health insurers and by companies and organizations that provide financial assistance to patients .

Because payers have finite resources, they are often tasked with difficult healthcare decisions . In public health insurance scenarios – like those in many european countries and in the medicare/medicaid system in the united States – payers must balance the needs of the individual with those of society . Additionally, private health insurance companies must meet their obligations to both patients and shareholders . These balancing acts fall under the heading of health economics.

As it relates to individual therapies, health economics weighs the costs and effectiveness of a given treatment against other treatments available for the same condition (or against not treating the disease) . This evaluation is often conducted by health technology assessment (hTA) agencies with the aim of determining how much of the cost, if any, the payer should cover . As austerity measures throughout europe and other places around the globe have led to cuts in healthcare spending, countries are further strengthening such cost-containment measures already in place and implementing new, tougher policies impacting patients’ access to treatments .

At Biogen Idec, where we constantly seek to create new standards of care for unmet medical needs, this rising influence of health economics has far-reaching implications . We must work to demonstrate that the health outcomes and improved quality of life afforded by our treatments are considered significant enough to justify the price we must ask in order to recoup our substantial r&D investment and remain profitable .

In setting the price for our medicines, we are guided by a number of principles that strive to balance the needs of our patients, investors, payers, employees and future generations who count on our success in developing breakthrough therapies . We maintain a pricing committee that oversees all aspects of our pricing policies, including pricing provisions and discounts . The committee is responsible for developing pricing guidelines and meets periodically to assess and update those guidelines . We also collaborate with hTA agencies, clinician organizations and patient associations to ensure that all patients can receive the treatments they need . Fundamentally, we are devoted to improving the lives of those with serious illnesses worldwide, now and in the future .

A good example of our approach is AvOneX, our first-line therapy for mS . It’s priced at the low end of the range for its class, while offering patients the need for fewer injections than other first-line mS therapies . revenues from AvOneX have been reinvested in innovations to help patients, including:

• The AvOneX pen® auto-injector, which improves administration of the drug

• An AvOneX titration kit, which helps tailor dosing to reduce flu-like symptoms that can occur early on in treatment

avonex, our first-line therapy for ms, is priced at the low end of the range for its class, while offering patients the need for fewer injections than other first-line ms therapies.

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BiosimilarsAs we continue to focus on innovation, we also recognize that access to high-quality therapies at a lower cost will become increasingly important for patients, with biosimilars playing a significant role . Similar to generic drugs, biosimilars are approved follow-on versions of original biological products that enter the marketplace after drug patents expire . There are areas of the world where large groups of patients would benefit from biosimilars .

In 2012, Biogen Idec formalized its joint venture with Samsung, creating Samsung Bioepis . This joint venture leverages our expertise and capabilities in protein engineering, cell line development and recombinant biologics manufacturing to position the company to participate in the emerging market for biosimilars .

Strategically Entering Emerging Markets

The diseases on which Biogen Idec has traditionally focused, such as mS, are most prevalent in north America, northern europe and other developed parts of the world . As we continue to expand globally and into new treatment areas like hemophilia, we are taking a strategic approach to bringing therapies to patients in new and emerging markets .

Challenges and dynamics vary significantly from country to country . In 2011, Biogen Idec formed an emerging markets group to focus on countries such as Brazil, russia, India, Japan and Australia . A large portion of the global population resides in the regions served by this group and these markets have growing economic strength and unique epidemiology . But most importantly, patients in these countries have a significant unmet need for new treatment options .

Biogen Idec has a direct commercial presence in 30 countries worldwide, and an extensive distributor partnership network that increases our reach to more than 60 countries . Our most recent expansions include new offices in hungary, poland, hong kong and Singapore . Our distribution partners are typically pharmaceutical companies that are licensed to sell Biogen Idec products in one country or region through their local subsidiary .

Immediate opportunities for expansion of therapies for rare diseases are generally more limited in these emerging markets; market volatility and political uncertainty are higher . This requires strong financial and management discipline in the pursuit of our expansion strategies .

Ready to SOAR

For the past several years, Biogen Idec has conducted a companywide survey to gauge employee satisfaction and solicit their feedback on our operations and work environment . While the results from our 2012 survey were very positive in most regards, employees clearly saw room to improve the efficiency and effectiveness of some of our business processes, as well as the way our company lives up to its performance culture .

We acted decisively on this feedback . In early 2013, we launched our Sustainable Operational agility and readiness (SOar) initiative, an effort to evolve our operational model to help execute our corporate strategy and align it more fully with our Culture of excellence . SOAr will take a hard look at our processes and structures and identify opportunities to simplify the way we work, freeing employees from unnecessary tasks and allowing them to focus on the work they love .

SOAr is critical to our execution of the corporate strategy . We believe it will enable us to remain nimble and scale appropriately as our business continues to grow . We look forward to updating our progress in future reports .

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CRE aTINg ValuE

Managing Responsib ly

Ensuring Ethical Business Practices

biogen idec is committed to conducting our business ethicaLLy and With integrity.

Sound corporate governance is essential to sustaining our growth and success as a company and to maintaining the trust and confidence of our stakeholders . This extends throughout all aspects of our business, from the way we conduct clinical trials to the way we market our products .

responsibility for our performance begins with our Board of Directors . It has 12 members, three women and nine men, all of whom meet the independence requirements of the nASDAQ, with the exception of our CeO . The board’s Corporate governance committee sets our company’s governance framework in our Corporate governance principles .

all employees must comply with our code of business conduct, which guides decision-making throughout our organization.

All employees must comply with our Code of Business Conduct, which guides decision-making throughout our organization . We update the Code as needed and require employees to participate in training sessions to ensure that they understand all the principles and practices that it sets forth . The Code was updated in 2013 .

Our Anti-Bribery and Anti-Corruption policy outlines standardized global operating procedures focused on grants and donations, sponsorships and fees for services and hospitality . more information can be found under the About us tab of our website in the Corporate governance section .

Sustainability Policy The Biogen Idec Sustainability policy was adopted in 2011 by our Corporate Sustainability Council (CSC), which comprises a cross-functional team and is chaired by our CeO . The policy lays out our commitment to operating in a manner that reduces our environmental impact, improves social conditions and promotes economic prosperity . The policy also requires the company to develop a long-term corporate citizenship strategy, including goals, objectives and targets, and an annual report on our progress . In early 2012, the CSC reported our environmental sustainability progress and performance to the company’s Board of Directors . moving forward, we intend to report to the board on an annual basis .

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Care Deeply Day: Argentina In Argentina, 19 employees formed five teams and headed out to spend the day at the Madre Marie Jose Support Center for Children, where they undertook a number of volunteer tasks. These included cleaning up after breakfast, planting flowers, fixing furniture and reading stories. One team also installed a volleyball net and basketball hoop – which the children promptly tested with an impromptu game! Throughout the day, the Biogen Idec volunteers also handed out school supplies to the children.

Payments to investigators To ensure the integrity of our research, we employ stringent guidelines in identifying and contracting with investigators (physicians and other personnel) who implement the clinical trials sponsored by Biogen Idec . We also conduct extensive capability assessments to determine whether investigators are able to comply with the requirements of the protocol . We require both investigators and the institutions that employ them to review the services they will perform in conjunction with a trial and agree to an associated budget and payment structure . Biogen Idec conducts fair market value assessments to ensure that investigators are paid fairly for their work conducted . We also have policies that require investigators to disclose any financial interests in our company, thereby reducing the potential for conflicts of interest .

animal Welfare regulatory agencies worldwide mandate the testing of potential therapeutics in animals to assess their safety and efficacy before they can be tested in humans . Biogen Idec is committed to meeting or exceeding all applicable animal welfare regulations and has established Institutional Animal Care and use Committees (IACuCs) to provide oversight for animal care and use at our facilities . These committees work to ensure that research and testing in animals is conducted only when scientifically necessary . All of our animal facilities are accredited by the Association for Assessment and Accreditation of Laboratory Animal Care International .

We encourage and support our staff in pursuing training certification through the American Association for Laboratory Animal Science . We have implemented a number of programs and initiatives to apply the 3rs (reduction, refinement and replacement) of animal testing .

For instance, we frequently conduct screening tests in cell cultures to ensure we select only the most promising candidate medicines for subsequent testing in animals . We use computer modeling, in vitro analytical assays and database mining in our research . We also use automated blood sampling techniques to minimize stress and employ multiple noninvasive imaging technologies . Additionally, we are committed to increasing our use of noninvasive imaging tools . For instance, we have constructed an imaging core facility to assist researchers with needs for magnetic resonance imaging (mrI), positron emission tomography (peT)/single-photon emission computed tomography (SpeCT), and computed tomography (CT)/SpeCT imaging in animals . This will not only benefit animal welfare and support the 3rs, but also enhance the predictive value of our animal models and our translational medicine efforts, which help us translate research into improved patient care .

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as part of our commitment to patients, biogen idec is dedicated to protecting the safety and integrity of our products, which are now helping people in every corner of the globe.

responsible Marketing We are committed to providing information that is accurate, supported by scientific evidence and presented honestly and fairly in every context . Our interactions with patients and healthcare providers are governed by all applicable laws and regulations, as well as by our Code of Business Conduct and our Comprehensive Compliance program . All applicable employees receive regular training and education programs regarding our marketing policies and practices .

We recently revised our Code of Business Conduct, among other actions, to update and improve on our policies regarding product information and promotion, as well as our interactions with healthcare professionals and organizations . All applicable employees were required to take part in online and hands-on training, which used real-world examples to help bring these policies to life .

We aim to ensure that all of our marketing materials are created and communicated in an ethical and responsible manner . Our product review Committees are responsible for reviewing and approving marketing materials before they are distributed publicly . We have adopted a global policy that identifies general principles to be incorporated when global promotional materials are created, as well as a standard operating procedure (SOp) to be implemented by all Biogen Idec offices throughout the world .

Product Security and Brand Protection Biogen Idec takes the issue of counterfeit, adulterated and compromised drugs very seriously and is committed to the highest standards of drug quality and patient safety . Counterfeits, adulterated and compromised drugs by their nature are of unknown safety and efficacy, thereby putting patients at risk .

As part of our commitment to patients, Biogen Idec is dedicated to protecting the safety and integrity of our products, which are now helping people in every corner of the globe . Worldwide markets for biopharmaceutical products like ours are generally well regulated for the secure delivery of medicines, and we have great trust in the governments and commercial partners who help distribute our therapies .

however, the sheer size of the biopharmaceutical market and increasing patient demand for these therapies can attract criminal individuals and organizations who seek to profit from world markets by counterfeiting, adulterating, diverting or stealing pharmaceuticals . medicines that go through such channels may be altered in ways that make them unstable, ineffective and even toxic – posing a tremendous threat that could be increasing globally . If such medicines are not identified before they reach patients, patient health can be put in jeopardy .

Our product security and brand protection program supports an effective, secure and resilient global supply chain, and the overall integrity of Biogen Idec’s medicines, for the protection and safety of our patients . Some of the measures Biogen Idec is employing to deter, detect and disrupt the criminal counterfeiting of our medicines include:

• Implementing sophisticated technology into our product packaging

• Auditing and monitoring of supply chain partners globally

• monitoring drug sales and potential threats to the supply chain with counterfeit or diverted product

Biogen Idec supports the use of appropriate track-and-trace techniques to advance the security of the supply chain . Delivering safe, secure, effective products to patients remains our commitment .

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About This Report

biogen idec’s Fourth annuaL corporate citizenship report presents our citizenship and sustainabiLity achievements, chaLLenges and goaLs to our empLoyees, patients and other key stakehoLders.

This report was prepared in accordance with the global reporting Initiative (grI) g3 .1 guidelines . We believe we have achieved a grI Application Level B+, which constitutes a high degree of transparency and data inclusion . Trucost has externally validated 2012 data for water use, energy use, greenhouse gas emissions for fleet and travel, and solid waste .

Data in this report covers our domestic and international companywide operations, including consolidated subsidiaries but excluding joint ventures, for calendar years 2010 through 2012, with an emphasis on 2012 activities . Some activities of note from early 2013 are also covered . Our 2012 environmental data includes our main locations (Weston, mass ., Cambridge, mass . and research Triangle park, n .C . in the united States and hillerød, Denmark) .

All references to currency are in u .S . dollars . Biogen Idec is responsible for the preparation and integrity of the content in this report . Through a system of internal controls, including a comprehensive verification process by internal subject matter experts, we believe this report accurately represents our corporate citizenship and sustainability initiatives .

For more information on this report, send questions or comments to patrick .hoy@biogenidec .com .

Priority Topics

For the past several years, Biogen Idec has conducted materiality Assessments to determine what citizenship and sustainability issues have the most impact on our company and are most important to key stakeholders . We have strived to include in-depth coverage of the most material topics within this report and/or on applicable sections of our corporate website .

In 2012, we refreshed our materiality Assessment by exploring both emerging issues in the healthcare field and topics that we believed could be better represented in our report . Based on these factors, 10 issues were identified for exploration, some of which are new and some of which we’ve explored previously:

• Innovation management in r&D

• health Outcomes of Treatment

• recruitment and retention

• Cost Burdens – Company/Industry/Society

• Cost Burdens – patient

• emerging markets

• Workforce Diversity

• Access to Treatment

• Supply Chain

• Workforce Development

To determine the materiality of each of these topics, we engaged in a variety of research activities .

To help gauge impact on the company, we administered surveys to high-level internal subject matter experts (Smes) across a number of pertinent disciplines; reviewed a variety of corporate materials, including strategy plans, internal communications and news releases; and we considered the results of our 2012 companywide employee survey . We also asked internal Smes whether they believed each topic was increasing, decreasing or remaining about the same in importance to the company .

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For more information on this report, send questions or comments to patrick.hoy@biogenidec.com.

To gauge the importance of these topics to stakeholders, we included stakeholder questions in the Sme questionnaire; reviewed the websites and other materials of sustainability-oriented ngOs and patient advocacy groups; conducted a comprehensive qualitative review of what was being written about these topics in biotechnology/biopharmaceutical association publications and blogs, as well as industry publications and blogs; conducted both a qualitative and quantitative review of mainstream business media and social media channels; and reviewed the sustainability reports of other companies in the biotechnology/biopharmaceutical fields .

Scoring and weighting methodologies were applied to the results, based on a 1-5 scale, where “5” indicated greatest impact or importance . each topic was plotted on our 2012 Topics Materiality Grid . As the grid on the right demonstrates, all of the topics were deemed above average (3>) in importance to both the company and its stakeholders . Topics identified as most material include “Innovation in r&D,” “health Outcomes of Treatment,” “Cost Burdens” and “Access to Treatment,” the first three of which are believed to be increasing in importance to the company, as indicated by the upward arrows .

Based on the position of each topic on the 2012 Topics materiality grid, each was added to the Materiality Matrix that Biogen Idec had previously developed . Coverage in this report and on the Biogen Idec website was developed accordingly .

2012 MaTerialiTy MaTriX

> cost Burdens to company/

industry/Society

> cost Burden to Patient

> access to Treatment

> energy

> Public Policy

> Disclosure of Political contributions

> emerging Markets

> Philanthropy

> Product lifecycle

> Biosimilars

> recruitment and retention

> Supply chain

> Governance

> employee Satisfaction

> Solid Waste

> compensation & Benefits

> Occupational health & Safety

> Workforce Diversity

> Workforce Development

> innovation in r&D

> health Outcomes

> climate change/ GhG emissions

> Medicines for Unmet needs

> Patient Safety & Transparency

> research ethics

> reporting Transparency

> Drug Pricing

> Marketing Practices

> Water Use

> Financial Performance

Imp

orta

nce

to S

take

hold

ers

Impact of Business

2012 TOPicS MaTerialiTy GriD

Imp

orta

nce

to S

take

hold

ers

Impact of Business

5

1 5

Mean 3.74

Mean 3.73

WOrKFOrce DiVerSiTy

WOrKFOrce DeVelOPMenT

SUPPly chain

eMerGinG MarKeTS

recrUiTMenT/reTenTiOn

acceSS TO TreaTMenT

cOST BUrDen/PaTienT

cOST TO cOMPany/inDUSTry/ SOcieTy

healTh OUTcOMeS OF TreaTMenTinnOVaTiOn in r&D

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Gri DiSclOSUre/ inDicaTOr

SecTiOn PaGe nUMBer/ lOcaTiOn

Strategy and Analysis

1 .1 Letter from Leadership 2

1 .2 Citizenship and Sustainability at Biogen Idec 5

Organizational Profile

2 .1-2 .8; 2 .10 About Our Company; Corporate Website 3-4; global Locations

2 .9 There were no significant changes to Biogen Idec’s size, structure or ownership in 2012 .

Report Parameters

3 .1-3 .3; 3 .5-3 .8; 3 .13 About This report 47-48

3 .4 please direct questions or comments to patrick .hoy@biogenidec .com

3 .9 rethinking resources 35

3 .10 Improving Lives; rethinking resources 25, 35

3 .11 There were no significant changes from the previous reporting period in scope, boundary or measurement methods, except as referenced in 3 .10 .

3 .12 grI Index 49-52

Governance Commitments and Engagement

4 .1-4 .3 Creating value; Corporate Website 44; Corporate governance

4 .4-4 .5 Corporate Website Corporate governance

4 .6 Corporate Website Code of Business Conduct

4 .7; 4 .10 Corporate Website Corporate governance Committee Charter

4 .8 Citizenship and Sustainability at Biogen Idec; Creating value; Corporate Website 5, 44-46; Code of Business Conduct

4 .9 Creating value 44

4 .11 Biogen Idec applies the precautionary approach in ensuring the safety of patients, and performing detailed risk analyses related to our operations .

4 .12 Creating value; grI Index 45, 51-52

4 .13-4 .16 Creating value 37-39

4 .17 About This report 47-48

GRI Index

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Gri DiSclOSUre/ inDicaTOr

SecTiOn PaGe nUMBer/ lOcaTiOn

Economic Performance

management Approach Letter From Leadership; Corporate Website 2; 2012 Annual review

eC1 About Our Company; Corporate Website 3; 2012 Annual review

eC2 We have identified a number of potential risks associated with climate change, including:

• physical risk to property and employees, including increased droughts, hurricane severity,

power or communications failures and flooding, which could affect our operations .

• Operating and financial risks, including extreme weather events and rising sea levels,

that could disrupt transportation of goods/services/employees and physically impact our

r&D and manufacturing sites . We could also be impacted financially if sectors we source

from become subject to greenhouse gas regulations .

eC3 In the united States, we do not have any defined benefit plan obligations . Outside of the united States, we make government-mandated pension contributions .

eC6 We choose our suppliers based on quality, delivery, service, diversity, reputation and price . We are committed to sourcing from diverse and locally owned small businesses when possible . however, we do not track our spend with locally based suppliers .

eC8 Improving Lives 14-17

Environmental

management Approach rethinking resources 26-28

en2 Due to the nature of our business, we do not use any materials that are recycled input materials .

en3-en4 rethinking resources 27, 35

en5-en6 rethinking resources 28-32

en8-en10; en16-en17 rethinking resources 35

All of our water is drawn from municipal sources . We do not believe we significantly affect any water sources, but continue to work to reduce our water consumption .

en18 rethinking resources 31-32

en22 rethinking resources 35

en23 Biogen Idec did not have any significant spills to report in 2012 .

en24 We produce both chemical and medical waste, all of which is incinerated for waste-to-energy purposes . We do not ship any waste internationally .

en26 rethinking resources 26-34

en27 rethinking resources 35

en28 Biogen Idec did not have any significant fines or nonmonetary sanctions related to noncompliance with environmental laws and regulations in 2012 .

GRI Index

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Gri DiSclOSUre/ inDicaTOr

SecTiOn PaGe nUMBer/ lOcaTiOn

Labor Practices and Decent Work

management Approach Biogen Idec follows laws, regulations and international conventions related to labor practices and ensuring decent work, including the ILO Tripartite Declaration of principles concerning multinational enterprises and Social policy and the Organisation for economic Co-operation and Development guidelines for multinational enterprises . Specific commitments to respect in the Workplace and Workplace health and Safety are outlined in our Code of Business Conduct . employees are responsible for upholding the code . Suppliers are also subject to the code .

If employees identify illegal activity or activity in violation of the Code of Business Conduct, they should report those violations to their management or a representative in the human resources, Legal or Compliance organizations, or through the Compliance hotline . Incidents are investigated and corrective actions are taken as necessary according to company policy .

Our executive vice president of human resources is responsible for all aspects of human resources management and oversees our human resources department, charged with executing a number of programs related to employment, training and education, and diversity and equal opportunity . employee health and Safety is overseen by our environment, health and Safety department .

Also see page 18 of this report .

LA1 Improving Lives 19

LA3 Corporate Website Benefits & rewards

LA4 Approximately 6 percent of our employees are under a collective bargaining agreement . All of these employees work in our hillerød, Denmark, manufacturing facility .

Labor Practices and Decent Work

LA5 At our hillerød, Denmark, facility, the minimum notice period is based on seniority and specified in the collective bargaining agreement . notice periods may vary anywhere from one to six months .

LA7-LA8 Improving Lives 25

LA11 Improving Lives 22-23

LA12 All Biogen Idec employees receive a performance and career development review, annually .

LA13 Creating value 44

Human Rights

management Approach In every country where we operate, Biogen Idec follows all laws, regulations and international conventions related to human rights, including the ILO Tripartite Declaration of principles Concerning multinational enterprises and Social policy and the Organisation for economic Co-operation and Development guidelines for multinational enterprises . The expectation to adhere to laws and regulations is outlined in our Code of Business Conduct .

If employees identify illegal activity or activity in violation of the Code of Business Conduct, they should report those violations to their management or a representative in the human resources, Legal or Compliance organizations, or through the Compliance hotline . Incidents are investigated and corrective actions are taken as necessary according to company policy . Suppliers are also subject to our code . Additionally, we are working to improve the monitoring and enforcement of human rights in our supply chain through participation in the pharmaceutical Supply Chain Initiative (see page 39) .

hr2 Creating value 39

GRI Index

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Gri DiSclOSUre/ inDicaTOr

SecTiOn PaGe nUMBer/ lOcaTiOn

Human Rights

hr3 All Biogen Idec employees are trained on Biogen Idec's Code of Business Conduct on an annual basis . We do not track hours of employee training that are specific to policies and procedures on human rights .

hr5-hr7; hr10 We have not identified any owned operations where there is a significant risk of human rights violations . Our major operations are not in areas considered to be at high risk . We are working to improve monitoring and enforcement of human rights in our supply chain through participation in the pharmaceutical Supply Chain Initiative .

hr11 no grievances related to human rights were filed in 2012 .

Society

management Approach Corporate Website Code of Business Conduct

SO1 Improving Lives 13-17

SO2-SO3 Creating value 44

SO5 Creating value; Corporate Website 39; public policy

SO6 The Biogen Idec pAC supports federal candidates working to advance public policy goals important to our company . By law, these contributions are publicly disclosed on the Federal election Commission’s website at www .fec .gov .

SO7-SO8 Corporate Website 2012 10-k: note 22, page F-59

SO9-SO10 We have not identified any operations with significant potential or actual negative impacts on local communities . At our major locations, we have procedures in place to help ensure that the impact of our operations on our local communities remains minimal . These include environmental assessments and traffic flow strategies . We also positively impact the communities where we live and work through our community programs .

Product Responsibility

management Approach Improving Lives; Corporate Website 12; patient Safety in Clinical Trials

pr1 Improving Lives; Creating value 7-8, 45

pr3 All of our products contain information on the contents and safe use and disposal of the therapies .

pr5 Creating value 37-38

pr6 Biogen Idec complies with relevant laws and regulations . We comply with the Code of pharmaceutical marketing practices of the International Federation of pharmaceutical manufacturers & Associations (IFpmA), The Code of practice of the european Federation of pharmaceutical Industries and Associations (eFpIA), as well as local laws and codes of marketing practice, such as the pharmaceutical research and manufacturers of America (phrmA) Code on Interactions with healthcare professionals .

pr7 Warning letters: marketing, Advertising and Communications

2010 2011 2012 1 0 1

pr9 Corporate Website 2012 10-k: note 22, page F-59

GRI Index