SuStainability RepoRt 2020/21

DepenDable. action. together.

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SuStainability RepoRt 2020/21

contentin our daily activities, we take care to integrate sustainability into our processes. our Sustainability Report, entitled “Dependable. action. together.” highlights what we have achieved in the last year.

leaDeRSHip anD ReSponSibility ouR aReaS oF ReSponSibility FuRtHeR inFoRMation

3 Statements by the Executive Board4 Sustainability at PHOENIX at a glance5 Responsible company management 5 AprofileofthePHOENIXgroup6 Futureviability7 Sustainabilitymanagement

11 Value creation for customers and the company

11 Compliance13 Supplychain13 Qualitymanagement14 Logisticssolutions14 Customersatisfaction

15 Environmental protection15 Energyconsumption16 Transportservices17 Greenhousegasfootprint19 Materialinputs20 Waste

22 Supporting employees 22 Employment23 Traininganddevelopment24 Dialogueandcommunication25 Occupationalhealthandsafety

27 Commitment to society27 Priorities28 Healthandeducation

29 Reportprofile30 Listofmaterialtopics31 Factsandfigures35 GRIcontentindex39 Imprint

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SuStainability RepoRt 2020/21

Further informationOur areas of responsibilityLeadership and responsibilityStatements by the Executive BoardSustainabilityatPHOENIXataglanceResponsiblecompanymanagement

StateMentS by tHe executive boaRD

Sven SeiDelChiefExecutiveOfficer

Steve anDeRSonMemberoftheExecutiveBoardOperations&Logistics

HelMut FiScHeRMemberoftheExecutiveBoardChiefFinancialOfficer

MaRcuS FReitaGMemberoftheExecutiveBoardCustomers&Channels

SteFan HeRFelDMemberoftheExecutiveBoardCommercial&Marketing

DR. RolanD ScHÜtZMemberoftheExecutiveBoardIT&Digital

» Weadvocateresponsiblebusinesspracticesandplantolaunchanewstrategicsustainabilityagendain2021.Inthisapproach,economicefficiencyandtheconservationofenviron-mentalresourcesgohandinhand.

» Preventingwasteisveryimportanttous–particu­larlyinthecaseofpharmaceuticalwaste.Reducingwasteinallareasallowsustocutcostsandreduceenviron-mentalrisks.WeareakeyhealthcareprovideracrossEuropeandsustainabilityiscoretoourbusinessmodel.

» Theissueofsustainabilityisgrowinginimportance– forourcustomers,forbanksandinvestors,andforouremployees,too.Moreandmoreyoungprofessionalsexpecttheiremployerstoruntheirbusinessesresponsibly.

» Asahealthcareproviderthatisactivein27countries,wehavemuchtogainfromdialoguewithourEuropeansubsidiarieswhenitcomestosustain­ability–welearnfromandinspireeachother.

» Theclearfocusonsustain-abilityalongtheentirevaluechainisanintegral partofnegotiationswith ourindustrypartnersupto theenergy­efficientdesign ofourpharmacyconcepts.

» Digitalisationisplayinganincreasinglyimportantroleinthehealthcareindustry;atrendthathasacceler-atedasaresultofthecoronaviruspandemic.Byusinginnovativetechnologiesandservices,weaimtoprovideourcustomerswithcompre-hensivesolutions–andremainfitforthefuture.

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SuStainability RepoRt 2020/21

Further informationOur areas of responsibilityLeadership and responsibilityStatementsbytheExecutiveBoardSustainability at PHOENIX at a glanceResponsiblecompanymanagement

SuStainability at pHoenix at a Glance

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2.8 %

749,44317,861750100 %

73 %9.7 %

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5

SuStainability RepoRt 2020/21

Further informationOur areas of responsibilityLeadership and responsibilityStatementsbytheExecutiveBoardSustainabilityatPHOENIXataglanceResponsible company management

a pRoFile oF tHe pHoenix GRoup

ThePHOENIXgroup,headquarteredinMannheim,Germany,isaleadinghealthcareproviderandoneofthelargestfamilybusinessesbothinGermanyandinEurope.Itscoreinterestsarepharmaceuticalwholesale,pharmacyretail,andhealthcare logistics.Subsidiariesalsooperate in relatedbusinessareasandareengagedinactivitiesincludingservicesforthepharmaceuticalindustry,logisticssolu-tions,andgoodsmanagementsystemsforpharmacies.Withover39,000employees(previousyear:around39,000),thecompanymakesavitalcontributiontocomprehensivehealthcareinEurope.

ThePHOENIXgroupoperatesin27Europeancountries.Initscorebusiness,thecompanyoperates161distribution centres andmore than2,800of its ownpharmacies (previous year: 2,700).Thismakesitsgeographicportfoliohighlydiversified.Asthegroup’slargestmarket,Germanymakesuparoundone­thirdofgrouprevenue,amountingtoapproximately€28.2billioninfiscalyear2020/21(previousyear:€27.3billion).Thiscorrespondstoariseof3.2percent.Atthesametime,totaloperat-ingperformanceincreasedby4.0percentto€35.9billion(previousyear:€34.5billion),andearningsbeforeinterest,taxes,depreciation,andamortisation(EBITDA)rosebyaround8.3percentto€653.4million(previousyear:€603.6million).

ThePHOENIXgroupisoneofEurope’sleadinghealthcareprovidersandisactivein27countries.Thefamilybusinesswantstomakeacontributiontowardsbuildingahealthyfuturewithagoodqualityoflife–andisworkingtointegratesustainabilitymoredeeplyintoitsprocesses.

pHoenix GRoup: linK between ManuFactuReR anD patient

ReSponSible coMpany ManaGeMent

Pharmaceuticalindustry

WholesaleRetailDoctors

Hospitals

Patient Healthcare logistics

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SuStainability RepoRt 2020/21

Further informationOur areas of responsibilityLeadership and responsibilityStatementsbytheExecutiveBoardSustainabilityatPHOENIXataglanceResponsible company management

Inpharmaceuticalwholesale,thePHOENIXgroupisnumberonein12countries(previousyear:13).It operates itspharmacy retail businessmainly in theCzechRepublic,Hungary, Latvia, Lithuania,Montenegro,theNetherlands,Norway,Romania,Serbia,Slovakia,Switzerland,andtheUnitedKing-dom.Thegroup’sstrongpharmacybrandsincludeBENU,Apotek1(Norway),RowlandsPharmacy(UnitedKingdom),andHelpNet(Romania).ThePHOENIXgroupalsoofferscompaniesinthepharma-ceuticalindustryitsservicesalongthesupplychain.Moredetailsareavailableinour» 2020/21 Annual

Report.

corporate mission statement communicates values and vision ThecorporatemissionstatementofthePHOENIXgroupplaysanoverarchingroleinourdailyactivi-ties.ItmakesthePHOENIXcorporatephilosophyaswellasourvision,mission,strategy,andvaluestransparent.InthecourseofthenewstrategicagendaWINGSwehavestrengthenedourcorporatemissionstatementtoaccommodatecountry­specificcharacteristicstoanevengreaterextent.Moreinformationcanbefoundinour» 2020/21 Annual Report. Asafamilybusiness,wemakeourowndeci-sions,pursuealong­termstrategy,andfocusonsustainablegrowth–whichweachievebycontinu-ingtodevelop.Ouremployeesformthebasisforoursuccess.Bysupportingtheirtargetedfurthertraininginallareas,wearenotonlyhelpingindividualstoprogress,butalsoguaranteeingthesuc-cessfulongoingdevelopmentoftheentiregroup.Thisallowsustofulfilourresponsibilities,bothnowandinthefuture.

FutuRe viability

ThemarketsinwhichthePHOENIXgroupoperatesareinastateofupheaval.Thechanges,espe-ciallythoseresultingfromregulatoryinterventions,arereflectedinincreasedpressureonmarginsandcosts.At thesametime, there isahigh levelofcompetition inthemarket.Companies inthepharmaceuticalsectorfaceenormouschallengesassociatedwithdigitalisation.

optimising processes and structures Toensureahighlevelofefficiencyandprovideflexibility,wecontinuouslyreviewandimproveourstructuresandprocesses–inadditiontoimplementingnumerousinitiativesandprojects.Thesein-cludetheexpansionofourpharmacyassociationNumark(UK)aswellasconceptsandfacilitieslikeMediPAC,whichprovidesacentral, time­savingsolution forassembling repeatprescriptions.OurestablishedWarehouseExcellenceinitiativeplaysanimportantrolewhenitcomestoidentifyingthecausesofbreakageandimplementingideasforimprovementwithregardtoavoidingrisks.Infiscalyear2020/21,wealsorolledouttheFLANKEproject,whichwaslaunchedin2019withtheaimofmodernisinganddigitalisingourlogisticsinfrastructureandprocesses.Anotherofourprioritiesistoinvestininfrastructureandautomationinordertofurtherraiseefficiencyandproductivity.Youcanfindmoreinformationaboutthisinour» 2020/21 Annual Report.

Development of digital skills StrengtheningthedigitalexpertiseofthePHOENIXgroupisanimportantelementofthecompany­ widestrategicagendaandagoalpursuedviavariousinitiatives.Theaimsaretooptimiseexistingworkflowsby takingadata­drivenapproachandpave theway for innovativebusinessmodelsbyanalysingcustomerneedsmoreeffectively.TheDigitalTransformation&Enablementdepartmentisresponsibleforimplementingcorrespondingmeasures.ThenewIT&Digitaldivisionwasalsoestab-lishedontheExecutiveBoardatthestartof2021.

AfurtherpriorityofthePHOENIXgroupistostrengthenitsdigitalchannelstoendcustomersandpatients.InGermany,forexample,thecompanyiscooperatingwithpartnerstodevelopthehealthportal“gesund.de”.ThePHOENIXgroup’sdigitalplatformisbeingpreparedfortheintroductionofthee­prescriptioninGermanyandwillalsoofferawiderangeofhealthcareservices.YoucanfindmoreinformationaboutthedigitalexpertiseofthePHOENIXgroupanditsprioritiesinour» 2020/21 Annual

Report.

vision: Mission: values:

To be the best integrated healthcare provider – wherever we are.

To deliver health – across Europe.

To be reliable, proactive, and respectful.

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SuStainability RepoRt 2020/21

Further informationOur areas of responsibilityLeadership and responsibilityStatementsbytheExecutiveBoardSustainabilityatPHOENIXataglanceResponsible company management

SuStainability ManaGeMent

ThePHOENIXgrouphasdefinedasharedunderstandingofsustainability,whichweusetosetoutwhat responsible business and sustainable companymanagementmean for us.We implementmanysustainabilitytopicsatalocallevelduetovaryingconditionsintheEuropeanmarkets.

the pHoenix group’s understanding of sustainability ThePHOENIXgroupiscommittedtosupportingtheworldwideSustainableDevelopmentGoalssetbytheUnitedNations.Thisappliestoalldivisionsofthecompanyandtoeachofthecountriesinwhichweoperate.AsoneofEurope’sleadinghealthcareprovidersandafamilybusinessthattakesalong­termapproach,wewanttomakeasignificantcontributiontowardsbuildingahealthyfuturewithagoodqualityoflife.

Ouractiontosupportsustainabilitystemsfromourcorporatemissionandourvalues,throughwhichweareactivelycommittedtobeingthebestintegratedhealthcareprovider.Weconfrontthemajorchallengesandissuesoftheday,whetherthesubjectisdigitalisationorclimatechange.Weaimforgrowththatcreatesvalue–bothforourcompanyandforsociety.Inparticular,wecan–andwewantto–contributetothehealthandwell­beingofthepeopleofEuropebydevelopingsustainablelogis-ticsconcepts,usingresourcessparingly,providinggood,safeworkingconditions,andsupportingouremployees.

Inourday­to­daybusiness,wetakecaretointegratesustainabilityintoourprocessesalongtheentiresupplychain.Ouractionsareguidedbyhighstandardsofcompliance,quality,safety,andtranspar-ency.WeshoulderourresponsibilityacrossallnationalbordersinEurope.

Supporting the Sustainable Development Goals In2015,theinternationalcommunityadoptedaplanforsustainabledevelopmentinthe2030Agenda.The17SustainableDevelopmentGoals(SDGs)itcontainstakeequalaccountofallthreeaspectsofsustainability:society,environment,andeconomy.ThePHOENIXgroupiscommittedtosupportingtheseworldwidegoals.ThemostsignificantimpactsmadebythePHOENIXgroupprimarilyrelatetogoals3(GoodHealthandWell­Being),8(DecentWorkandEconomicGrowth),and12(ResponsibleProductionandConsumption).

Tomeasure its contribution towards achieving these three prioritised SDGs, thePHOENIX group initiatedanimpactprocessin2019,whichhadtobepostponedduetothecoronaviruspandemic.Weplantoresumethisprojectin2021.

» as one of europe’s leading healthcare providers and a family business that takes a long-term approach, we want to make a significant contribution towards building a healthy future with a good quality of life. «

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SuStainability RepoRt 2020/21

Further informationOur areas of responsibilityLeadership and responsibilityStatementsbytheExecutiveBoardSustainabilityatPHOENIXataglanceResponsible company management

establishing sustainability at the heart of our organisation and processes Weaim to integrate sustainability considerations into all relevant processeswithin thePHOENIXgroup.Thisalsoappliestotheactivitiesofalloursubsidiaries,tonewlyacquiredcompanies,andtoourrelationshipswithourstakeholders.Inthisway,wemakeitclearthatcorporatesuccessandso-cialresponsibilitygohandinhand.

TheMemberofthePHOENIXgroupExecutiveBoardforOperations&Logisticsassumestheoverallresponsibilityforsustainability.ThePHOENIXgroup’ssustainabilityteamisestablishedwithintheQualityManagementdepartment.ItcoordinateswiththeMemberofthePHOENIXgroupExecutiveBoardforOperations&LogisticsandactsasthecentralpointofcontactforallsustainabilityissuesinthePHOENIXgroupbycommunicatingwithspecialistdepartments.

Withregardtosustainability,wehaveagroup­widemanagementstructure.Giventhevaryingcondi-tionsintheEuropeanmarkets,weremaintruetoourprincipleofhandlingmanysustainabilitytopicsatalocallevel.Forexample,oursubsidiaryinFinlandhadalreadydevelopeditsownsustainabilitystrategyin2019.OurNorwegiansubsidiaryalsowantssustainabilitytoplayagreaterrolewithinitsfuturestrategy.Bytakingthesesteps,thecompaniesarerespondingtoregionalrequirementsandcontributingtowardsthePHOENIXgroup’soverallsustainabilitystrategy.Non­financialdataiscol-lectedbylocalsustainabilityrepresentativesinthesubsidiaries–anactivitythatiscoordinatedbythecentralsustainabilityteam.

Wecontinuetotakeacentralisedapproachtogroup­wideprojectssuchastheintroductionofenvi-ronmentallyresponsiblecarrierbagsinPHOENIXgrouppharmaciesandtalentmanagementforthewholeofEurope.Inordertopromoteknowledgesharingacrossthecompany,theformationofnet-works,andtheexchangeofbestpractices,thesustainabilityrepresentativesmeetregularlytodis-cussalloverarchingissues.

ThesustainabilityframeworkputintoeffectbythePHOENIXgroupin2019supportsitssubsidiariesastheyimplementthegroup’ssustainabilitymanagementsystem.Thisframeworkdefinesaspectssuchastheresponsibilities,roles,andtasksassociatedwiththeimplementationofthesustainabilitymanagementsystem.Italsoprovidesanoverviewoftheactivitiestakingplacewithinthecompanyaspartofthesustainabilityprogrammeintermsofdialoguewithstakeholders,guidelines,andre-porting.

SuStainability oRGaniSation

GRoup level

Member of the executive board operations & logistics of the pHoenix group

country Management

corporate Quality Management & cSR/ Sustainability team

Group controlling/Specialised departments

local sustainability teams

countRy level

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SuStainability RepoRt 2020/21

Further informationOur areas of responsibilityLeadership and responsibilityStatementsbytheExecutiveBoardSustainabilityatPHOENIXataglanceResponsible company management

Material topics GRi 102-42, GRi 102-43, GRi 102-44, GRi 102-46, GRi 102-47, GRi 102-49

WeregularlyperformamaterialityanalysisinlinewiththerequirementsoftheGRIStandardsbytheGlobalReportingInitiative.InFebruary2021,thetopicsdefinedin2018werereassessedbythesus-tainabilityrepresentativesintheindividualcountriesindialoguewithvariousspecialistdepartments,and thematerialitymatrixwasadjustedaccordingly.The topicswere evaluated in termsof their importancetostakeholdersandwithrespecttotheeconomic,environmental,andsocialimpactsofourbusinessactivities.

WehaveassignedthetopicsidentifiedasmaterialtothecorrespondingGRIStandardsonwhichthePHOENIXgroupreports.Ourareasofresponsibilityhaveagainthisyearprovidedthebasicstructureofourreportintheformofchapters:

° value creation for customers and the companyKeytoourvaluecreationarecompliancewithlawsandstandards,responsibleproductionofourcategorybrands, responsibleandethicalsupplychains, thesafetyofourproducts,access toqualitymedicinesandhealthcare,andcustomersatisfaction.

° environmental protectionWeareabletomakeaconsiderablecontributiontowardsenvironmentalprotectionbyensuringourbuildingsareenergyefficientandmakingsureourtransport logisticsareascleanaspos­sible.Weaccuratelyrecordthegreenhousegas(GHG)emissionsthatweproduceandworktoreducethembyoptimisingrouteplanningandusingalternativedrivesystems.Wealsoregardoptimisingouruseofresourcesandminimisingpharmaceuticalwasteaspartofourresponsibilitytowardstheenvironment.

° Supporting employeesItisouraimtocreateanattractiveandsafeworkenvironmentforallouremployees.Thisistheonlywaywecanretaintalentedpeopleinourcompanyinthelongterm.Tothisend,weinvestintheirfurthertraininganddevelopment.Inaddition,ourmeasuresfocusonpromotingdiversity,equality,andinclusion;providingfairworkingconditionsinthecompany;andensuringthehealth,safety,andwell­beingofouremployees.

° commitment to societyWehavebrought togetheroursocialcommitmentmeasuresunder themotto “Together forahealthyfutureforchildren”.Ouractionisprimarilyfocusedonthehealthofchildrenandonsup-portingpharmaceuticalresearch.Westrictlyadheretotherelevantlawsandstandards,ouranti­corruptionguidelines,andtheapplicableguidanceondonationandsponsorshiprequests.

MateRial topicS FoR pHoenix SuStainability ManaGeMent by aReaS oF ReSponSibility

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6.5

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Economic, environmental, and social impacts

Stak

ehol

der r

elev

ance

Diversity,equity,andinclusion

Responsibleproductionofown

brands

Customersatisfaction

Employeehealth,safety,andwell­being

Communityengagement

Wastemanagement

Energyuse

Responsibleandethicalsupplychains(sourcing)

Productsafety

Accesstohigh­qualitypharmaceuticalsand

healthcare

Fairworkingconditions

Emissionsandclimateimpacts

Staffdevelopment

Long­termtalentretention

Resourceconsumption

Valuecreationforcustomersandthecompany

Environmentalprotection

Supportingemployees

CommitmenttosocietyCompliance

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SuStainability RepoRt 2020/21

Further informationOur areas of responsibilityLeadership and responsibilityStatementsbytheExecutiveBoardSustainabilityatPHOENIXataglanceResponsible company management

Definition of group-wide strategyWewanttobeabletomeasurethecontributionthatweasacompanymaketowardssustainabledevelopment.Onlyinthiswaycanweincreasethepositiveimpactofourbusinessactivitiesandde-creaseournegativeimpact.ThatiswhythePHOENIXgroupiscurrentlyworkingonacompany­widestrategyinitsareasofresponsibilityaswellasonpracticalmeasurestoachieveit.Onthesubjectofvaluecreation,wewanttointegratesustainabilityintoourentiresupplychain.Withrespecttoourresponsibilityforemployees,thefocusisonpromotinghealthyworkingconditionsandacultureofrespectfulcooperation,andwhenitcomestotheenvironment,wewanttoreducethenegativeenvi-ronmentalimpactofourbusinessactivities.Wehavebroughttogetheroursocialcommitmentmea-suresunderthemotto“Togetherforahealthyfutureforchildren”.Wewanttouseourestablishedgroup­widesustainabilitymanagementsystemnotonlytodocumentthedegreetowhichthetargetsarebeingmet,butalsotospecifythecountry­specificobjectivesforwhichthesubsidiariesarere-sponsible.

Dialogue with stakeholders GRi 102-40, GRi 102-42, GRi 102-43

Wevalueourcooperativedialoguewithourstakeholders,whoareasourceofvitalinspirationforoursustainability strategy.We ascertain their expectations through regular stakeholder surveys. OurmostrecentEurope­widesurveyofouremployees,suppliers,customers,subcontractors,andotherbusinesspartnerswasconductedin2018andgatheredresponsesfrommorethan3,000people.

ThePHOENIXgroup’sSustainabilityteamisinconstantcommunicationwithemployeesonvarioussustainabilityissuesviatheSpeakapemployeeapp.Wealsoruntrainingsessionsforouremployeestoraiseawarenessaboutsavingenergy,preventingandseparatingwaste,andbiodiversity.

Moreover,thePHOENIXgroupworkstopromotesustainabilitythroughitsmembershipoftheGer-man Association of Pharmaceutical Full­line Wholesalers (PHAGRO) and of GIRP, the EuropeanHealthcareDistributionAssociationatEuropeanlevel.Togetherwithothermembercompanies,weparticipate in correspondingworkinggroups todevelop responsesandmeasures to address thechallengestheindustryfacesintermsofprotectingtheclimate.ThisisbecauseGermany’sClimateActionProgrammeandtheEuropeanGreenDealareexpectedtogiverisetopoliticalpressureforthepharmaceuticalwholesaletradetotakeactiontoreduceemissions.Inthereportingyear,asamem-berofPHAGRO,weplayedaleadingroleincalculatingtheoverallclimatefootprintofGermanphar-maceuticaltraders.

StaKeHolDeR ManaGeMent

pHaRMaceuticalcoMpanieS

involveMent oF tHe pHaRMaceutical inDuStRy

° Regularcommunicationwithcustomerrepresentatives

° Cooperationwithassociations

° Managementmeetingsaboutbusinessdevelopment

° Customersatisfactionsurvey

topicS

° Responsibleandethicalsupplychains

° Productresponsibility

° Emissionsandclimateimpacts

involveMent oF eMployeeS anD ManaGeMent

° Regularmeetingswithemployeerepresentatives

° Communicationandinformationonkeyissuesviainternalsocialplatform/intranet,employeeevents,notices

° Exchangevia“Speakap”

° Initiativesandprojectsindistri-butioncentresandpharmacies

topicS

° Promotinghealthandsafetyintheworkplace

° Compliance

° Emissionsandclimateimpacts

° Communityengagement

involveMent oF pHaRMacieS anD HoSpitalS

° Regularcommunicationwithcustomerrepresentatives

° Cooperationwithassociations

° Customersatisfactionsurveys

topicS

° Productsafety

° Compliance

° Resourceconsumption,wastemanagement, circulareconomy

involveMent oF buSineSS paRtneRSanD SubcontRactoRS

° Regularmeetings

° Jointinitiativesandprojects

topicS

° Productsafety

° Secureprocessingofcustomerdata

° Emissionsandclimateimpacts

pHaRMacieSanD

HoSpitalS

buSineSS paRtneRSanD Sub -

contRactoRS

eMployeeS anD

ManaGeMent

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SuStainability RepoRt 2020/21

Further informationLeadership and responsibility Our areas of responsibilityValue creation for customers and the companyEnvironmentalprotectionSupportingemployeesCommitmenttosociety

coMpliance

Responsibleandcompliant conduct formsavital cornerstoneof thePHOENIXgroup’scorporatecultureandiscrucialtoourlong­termsuccess.Ourinternalcomplianceguidelinesprovidetheframe-workforthisandhavebeenupdatedinfiscalyear2019/20.Ourkeymeasuresincludeempoweringouremployeestoactlawfullyandwithintegrityaswellasoptimisingourbusinessprocessesinorderto permanently reduce compliance risks. To achieve this, the PHOENIX group has established agroup­widecomplianceorganisation, completewith thenecessaryprocesses,andhasappointedlocalcompliancemanagersinallcountries.

The compliance system rests on five pillars:

° CodeofConduct

° Anti­corruptioncompliance

° Competitioncompliance

° Sanctionscompliance

° Anti­money­launderingcompliance

Thestandardsforarelationshipwithourcolleagues,customers,suppliers,andcompetitorsthatisbasedontrustarelaidoutinourcomplianceguidelinesand» Code of Conduct.WiththefullsupportofitsExecutiveBoard,thePHOENIXgrouppursuesazero­tolerancepolicyintheeventofviolationsofthesevaluesandrulesorguidelines.

Threestandardoperatingprocedures(SOPs)inthe» Anti-Corruptionfieldwereintroducedinfiscalyear2019/20toprovideallemployeeswithguidanceonthesubjectsofgifts,donations,grants,andspon-sorshipaswellasthird­partymanagement.Byadoptingthesanctionscomplianceguidelines, thePHOENIXgrouphasmadeacommitment–tothebestofitsknowledge–nottoconductanytrans-actionswithpersonsororganisationsappearingonsanctionslistsheldbytheEU,France,theNeth-erlands,Switzerland, theUnitedKingdom, theUnitedNations (UN),or theUnitedStates.Anauto-matedsolutionchecksallbusinesspartnersagainstatotalof11sanctionslists.

01value cReation FoR cuStoMeRS anD tHe coMpany The success of the PHOENIX group is founded on responsible and lawful conduct. We expect our ser-vice providers to act the same way. As a healthcare provider, ensuring the quality of products along the entire supply chain is our highest priority. It is critical that we maintain regular communication and mea-sure customer satisfaction in order to identify new developments and requirements at an early stage.

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SuStainability RepoRt 2020/21

Further informationLeadership and responsibility Our areas of responsibilityValue creation for customers and the companyEnvironmentalprotectionSupportingemployeesCommitmenttosociety

Focusing on data protection ItisimportanttothePHOENIXgroupthatwehandlethedatabelongingtocustomers,businesspart-ners,andemployeesinaccordancewiththelawandinatrustworthymanner.ThePHOENIXgrouphasagroup­widedataprotectionorganisation.ThecompanydivisionCorporateDataProtectionisthecentralpointofcontactforalldataprotectionmattersaffectingthegroup.TheCorporateDataProtection divisionwas further expanded during fiscal year 2020/21 to strengthen the PHOENIXgroup’sdataprotectionorganisationandensurethatthetargetsrelatingtodataprotectionlawareimplementedaseffectivelyaspossibleacrossthegroup.InadditiontotheHeadofCorporateDataProtection,thedivisionnowhasaNationalDataProtectionManager(wholooksaftertheGermanorganisationandthegroup’sGermansubsidiaries)andaJuniorDataProtectionManager(whosup-portstheHeadofCorporateDataProtectionatgrouplevelandwithregardtocooperationwiththesubsidiariesoutsideGermany).

WithinthePHOENIXgroup,allsubsidiariesinsideandoutsideGermanyalsohaveofficiallyappointeddataprotectionofficersand/ordataprotectioncontactswhoareresponsibleforadvisingtheorgan-isationandtheworkforceondataprotectionissuesandformonitoringcompliancewithdataprotec-tionlegislation.

Thenewgroupdataprotectionguidelinesenteredintoforceon1February2021.Theyapplytoallemployeesandareintendedtoensurethatanyprocessingofpersonaldataiscarriedoutexclusivelyinaccordancewiththeapplicableprovisionsofdataprotectionlawandincompliancewiththeobli-gationsandprinciplesoftheGeneralDataProtectionRegulation(GDPR).Thereportingandmanage-mentofdatabreachesarealsolaiddownandregulatedindetailintheguidelines.

PlanstoestablishadataprotectionmanagementtoolforthewholeofthePHOENIXgroupduringfiscalyear2020/21hadtobepostponedfororganisationalreasons,buttheprojectisexpectedtobecompletedinthesecondquarterofthecurrentfiscalyear.

AttheendofJanuary2021,CorporateDataProtectionorganisedagroup­wideawarenesscampaigntomarkEuropeanDataProtectionDayforasecondconsecutiveyear.Themainpurposeoftheinitia­tivewastomakeouremployeesawarethatdataprotectioncompliancecreatesaddedvalueforallcompaniesandisvitaltothesuccessofthePHOENIXgroupaswell.ThekeypointsofthePHOENIXgroup’snewdataprotectionguidelineswerealsopresentedaspartofthecampaign.

GroupComplianceconductsregularself­assessmentsandriskassessmentstoensurethatthecom-pliancemanagementsystemisimplementedandemergingriskscanbequicklyidentified.Morede-tailsareavailableonour» Website.

training employees Potentialrisksorviolationscanbereportedusingourexternal,web­basedwhistle­blowersystem.Thiscanbedoneanonymously,ifrequired.Bysteadilypressingaheadwiththecommunicationofcomplianceinformation,wealsoaimtobuildgreaterawarenessofthewhistle­blowersystem.Forthatreason,weadoptedacompliancecommunicationconceptin2019,whichwasimplementedin2020andissubjecttoongoingdevelopment.Tocommunicatethecontentsofthecompliancesys-temandtoensureallemployeesbehavelawfully,werunregulartrainingsessionsacrossthegroupintheformofe­learning.Staffintheso­calledfocusgroups(forexample,thosewhoareinparticu-larlyclosecontactwithcustomersorsuppliersorhavetheauthoritytomakebusinessdealsaswellas allmanagers) additionally receive in­person training on compliance. At the end of fiscal year2020/21,a totalof13,575employees (previousyear:11,737)hadbeen trainedviacompliancee­learningand4,286(previousyear:2,964)viain­personcompliancetraining.Duetorestrictionsresult-ingfromthecoronaviruspandemic, in­persontraining largelyalsotookplacevirtually inreportingyear2020/21.

»  The standards for a relationship with our colleagues, customers, suppliers, and competitors that is based on trust are laid out in our Code of Conduct. «

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SuStainability RepoRt 2020/21

Further informationLeadership and responsibility Our areas of responsibilityValue creation for customers and the companyEnvironmentalprotectionSupportingemployeesCommitmenttosociety

Aweb­basedtoolforreportingdatabreachesisinoperation.Agrowingnumberofdataprotectionincidentswererecordedinreportingyear2020/21incomparisonwiththepreviousfiscalyear.How-ever,noneofthereportedincidentshadaninternationalimpactandnotallofthesedatabreachesneededtobereportedtothesupervisoryauthority.Rather,theincreasingnumberofreporteddataprotectionincidentscanbeattributedtothefactthattheawarenesscampaignbyCorporateDataProtectionhasledtoagrowingawarenessofdataprotectionissuesamongemployees.

Supply cHain

InthePHOENIXgroup,theprocurementoftradegoodsandnon­tradegoodsisorganisedatalocallevel.TheCorporateGeneralProcurementdepartmentisresponsibleformanycross­bordermattersrelatingtonon­tradegoods,suchassoftware licencesandofficematerials.Thesubsidiariesalsohavetheirownpurchasingdepartmentsandstaff.

InGermany, thePurchasingdepartmentatPHOENIXPharmahandelGmbH is responsible for theprocurementoftradegoods.TheGeneralProcurementGermanydepartmenthascontroloverthepurchasingofnon­tradegoodssuchascapitalgoodsandservices.Itsremitalsoincludesriskpre-ventionalongtheentiresupplychainforgoodsprocuredfortheGermansites.Wemaintainpositiveandtrustingrelationships,especiallywithourdirectsuppliers.

PHOENIXUKcarriesoutaduediligencecheckonallnewsuppliers,whichalsotakessustainabilityconcerns into consideration. In addition, PHOENIX UK publishes an annual modern slavery and humantraffickingstatementincompliancewiththe» United Kingdom’s Modern Slavery Act.

ThePHOENIXgroupexpectsitspartnersalongthesupplychaintoactresponsiblyandinaccordancewiththelaw.Tothisend,wehavedrawnupourownSupplierCodeofConductfortheprocurementof indirectgoods.Werequireoursuppliers,aboveall therelevant topsuppliers inallcountries, tocomplywithenvironmentalandsocialstandards.Ourbusinesspartnersmustcommittoensuringoccupationalhealthandsafetyfortheiremployees,tocombattingcorruption,tomakingcontinuousimprovements to their environmental footprint, toguaranteeingdataprotection, and toobservingrelevantsocial,ethical,andenvironmentalstandards,aswellasencouragingthesamefromtheirsuppliers.Wereservetherighttoverifywhetherornotthe» Supplier Code of Conductisbeingobserved.

Infiscalyear2020/21,thematerialgroupscoveringtransport,consultancy,buildings,andmainten­anceand facilitymanagementservicesmadeup thegreatestproportionof indirectprocurementvolumes.

commitment to uphold human rightsTherespectofhumanrightsissomethingthePHOENIXgrouptakesveryseriously.WefollowtheprinciplesoftheUnitedNations’UniversalDeclarationofHumanRightsandexpectthesameofourpartnersalongtheentiresupplychain.Our» Supplier Code of Conductincludesabanonchildandforcedorcompulsorylabouranddiscriminationinadditiontotherightstofairpayandfreedomofassoci­ation.Possiblehumanrightsviolationscanbereportedanonymouslybyinternalandexternalpartiesviathegroup­widecompliancewhistle­blowersystem.Anysuchreportswillbesystematicallyinves-tigated.Violationsbythirdpartiesmayresult in theterminationofcontracts, thematterbeingre-portedtoregulatoryauthoritiesand/orthepolice,andtheaffectedPHOENIXgroupcompanytakingcivilactionagainsttheoffendingparty,whereappropriate.Inthereportingyear,therewerenoreportsofviolationsofthiskind.

Forfiscalyear2021/22,PHOENIXalsoplanstopublishapolicystatementonhumanrightsandtocommittostrengtheninghumanrightsalongtheentiresupplychain.

Quality ManaGeMent

Asafeandreliablesupplyofmedicinesisonlypossiblewithimpeccablequalityinthesupplychain.Thisextendsfromproductstorageinaccordancewithregulationsaswellasaccuratedeliveriestopharmacies and hospitals through to the optimal availability of medicines for consumers. All PHOENIXgroupcompaniesabidebytheguidelinesforgooddistributionpractice(GDP)aspublishedby theEU.Ourqualityassurancesystemsaremonitoredbymeansof internalauditsandofficial inspectionsbyexternalbodies.ThePHOENIXgroup’squalitymanagementsystemisrisk­basedandprocess­orientedinaccordancewithDINENISO9001.NinetypercentofthecompaniesbelongingtothePHOENIXgrouparecurrentlycertifiedinlinewiththisstandard.

ThePHOENIXgroupdulyimplementstheapplicablelegalrequirementsofEUDirective2011/62/EU,whichentered into force inFebruary2019andseeks tocombat the falsificationofmedicines.All prescription­onlymedicineswhich are placed on themarketmust nowbear a unique identifier in theformofatwo­dimensionalbarcode.Medicinepackagingalsoneedstofeatureasealtoprevent tampering.

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Our solution hinges on the PHOENIX FMD Cloud, which is a flexible, reliable, and cost­effective methodforourpartners.Ourgoalistofurtherimprovetheefficiencyandsecurityofthesupplychainintermsofproductqualityandpatientsafety.TheprocessesandmeasuresneededtoimplementthenewMedicalDevicesRegulation2017/745,whichenteredintoforceon26May2021,wereintegratedintoourworkingpracticeswithintheprescribedtime.

loGiSticS SolutionS

Byusing transmedTransportGmbH’sTrack&Tracesystem,weare able tomonitor transporteditemsinrealtimeandatanygivenmoment.ThesystemoffersadvantagesbothforthePHOENIXgroupandforitspartners.Itisnowveryrarethattransportcontainersaremixedup,forgotten,orin-correct.Inaddition,delayscanbedealtwith,theunderlyingcauseseliminated,andtransparencyinlogisticsincreased.Track&TracesolutionsarealreadyinuseincountriessuchasAustria,Germany,Hungary, theNetherlands, Sweden, Switzerland, and theUnitedKingdom.Plans are underway to introducethesesystemsinfurtherPHOENIXsubsidiaries.

The transmed GDP Solutions service includes GDP­compliant transport solutions for the direct, on­time distribution of pharmaceutical products frommanufacturers to pharmacies, clinics, and doctors’surgeries.Byusingspeciallyinsulatedandclimate­controlledvehicles,wemakesurethattransportationdoesnotadverselyaffectthequalityoftemperature­sensitivemedicines.InGermany,themajorityofdeliveriesarrangedbytransmedGDPSolutionsarealreadymadeusingsuchvehicles.

InSwitzerland,thefleethasbeenentirelyswitchedovertovehicleswithactivetemperature­controlsystems.TransportationisGDP­compliantnotonlyintheNetherlandsbutalsoinSerbia,Slovakia,Denmark,andBulgaria.ThenumberoftransportvehiclesintheUnitedKingdomfittedwithtempera-turemonitoringsystemsisgraduallybeingincreased.InEstonia,theprocessofequippingournewvehicleswithaGPS­basedtemperaturealarmsystemisongoing.

cuStoMeR SatiSFaction

Ourvision is tobe thebest integratedhealthcareprovider–whereverweare.Forus, thismeansprovidingeachcustomergroupwiththebestpossibleproductsandservicesalongtheentirepharma­ceuticalsupplychain.Indoingso,weputthesatisfactionofourcustomersattheheartofouractivi-ties.Wekeepinconstantcontactwithourcustomersinordertorespondpromptlytonewdevelop-ments and requirements. This process also involves conducting regular customer satisfactionsurveysinallofthecountriesinwhichwearerepresentedinthewholesalesector.Indoingso,weobtainimportantinsightswithregardtopotentialopportunitiesforimprovement–andgainvaluablecustomerretentionideas.

Eachnationalsurveyiscarriedoutinatwo­yearcycle.Inthepastyear,surveystookplaceinAustria,Switzerland,Croatia,Germany,and–forthefirsttime–Romania.Ofcourse,theresultsvaryconsid-erably from country to country. However, this allows us as a company to learnwhat customers currently regardasthemaintopics in their respectivecountriesandwheretheywould like toseecorresponding optimisations. Compared across Europe, our subsidiaries in Croatia, Serbia, and Denmark continued toperform thebest in termsof customer satisfaction.Generally, our regularsurveysrevealthattheproportionofextremelyorverysatisfiedPHOENIXgroupcustomersishigh,asistheloyaltyofourcustomersinthewholesalesegment.

Aftertheresultshavebeenpresented,itisimportanttoworkwiththeinsightsthathavebeengained.Forthispurpose,thestaffresponsiblefortheseareasfromtheindividualcountriesdrawupanactionplanwithintheframeworkofaso­calledfollow­upprocess.Thisplanisthenimplementeduntilthenextstudyandfollowedupwithintherelevantsubsidiary.

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eneRGy conSuMption

ThecorebusinessofthePHOENIXgroupconsistsofstoringandtransportingmedicines–activitiesthatinvolvetheconsumptionofelectricityandfuel,resultingintheemissionofgreenhousegases.With 161 distribution centres across Europe, the PHOENIX group regards efficient building tech­nologyasoneofthebestwaysofachievingenergysavingsandareductioninGHGemissions.Whenplanning and realising projects for new constructions or refurbishments, we follow regional andcountry­specificefficiencystandardsaswellasinternationallyapplicablenormsandguidelines.

FourofoursubsidiariesoperateanenergymanagementsystemcompliantwithISO50001.Othersubsidiariesperformenergyaudits.Weaccountforourenergyconsumptionviaanenergymonitor-ingsystemandrecordouremissionsinthePHOENIXgroup’scarbonfootprintanalysis.Fortheop-erationofourbuildings,weuseatemperaturemonitoringsystem

Saving energy through state-of-the-art technologyThesubsidiariesofthePHOENIXgroupacrossEuropehaveintroducedvariousenergy­savingmea-sures,includingtheongoingLEDmodernisationproject,theoptimisationandautomatedcontrolofheatingandair­conditioningsystems,andtheupgradeofroofsurfacesforenergyproduction.Forexample,byusingsmartheat(andcold)recoverytechnologyintheventilationsystem,theenergyconsumedbytheairconditioninginthemodernisedcanteeninMannheim,Germany,hasbeenre-ducedbyupto70percent.AtthePHOENIXgroupheadquartersinMannheim,inmanydistributioncentresusingLEDlighting,andinsubsidiariessuchasthoseinLatviaandPoland,automaticlightingcontrolgeneratessavings.InNorwayandLithuania,ourpharmacybrandspurchasegreenelectricity,whileoursubsidiariesintheNetherlands,theCzechRepublic,andtheUnitedKingdomhaveinstalledsolarpanelsonsomeoftheirroofs.

ThePHOENIXgroupistappingintoareasofsavingspotentialinitsoperationalprocesses,too,byinvestingintechnologicalinnovations.In2020,forexample,ourGermandistributioncentresinBerlinandBielefeldwereswitchedover to efficient, energy­savingair compressors, cuttingenergycon-sumptionby89,680kWhperyearbetweenthetwosites.Thismodernisationstepalsoallowsthewasteheat that isgenerated tobe fed into theheatingsystemsofbuildingsand facilities. In the Munich depot, a cold room using state­of­the­art cooling technology and more environmentallyfriendlyrefrigerantisgeneratingenergysavings.

02enviRonMental pRotectionClimate change and the increasing consumption of natural resources are among the greatest global challenges. The PHOENIX group acknowledges its environmental responsibilities and wants to min-imise the impact of its corporate processes. At the same time, we are focusing on the areas of activity where we can make the most difference – including reducing pharmaceutical waste and saving energy. In around one-third of our subsidiaries, environmen-tal management is carried out via a management system that complies with ISO 14001.

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ThesubsidiariesofthePHOENIXgrouplargelyusenaturalgasanddistrictheatingtomeettheirheat-ingrequirements.Overall,specificheatingenergyconsumptiondroppedbyaround7.8percentinthecourseoftheyear(previousyear:+ 4.8percent).Specificconsumptionofnaturalgashasdeclinedcontinuouslyin13countriesbutincreasedin6.Specificnaturalgasconsumptionfellby6.4percentoverall(previousyear:+ 3.8percent).ThisisattributabletoenergyoptimisationmeasuresandtheswitchfromnaturalgastodistrictheatingintheCzechRepublic.Insomecountries,themildwintercontributedtoadeclineintheabsoluteandspecificconsumptionfiguresforallsourcesofheatingenergy.TheinstallationofaheatpumphasmeantthatourAustriansubsidiarywasabletodiscon-nectfromtheheatingnetworkcompletelytwoyearsago.

Inthereportingyear,theeffectofenergy­efficiencymeasureswasevidentin15subsidiaries(previ-ousyear:14),whereelectricityconsumptionpersquaremetrehasdropped.However,despitetheincreaseinninecountries(previousyear:ten),electricityconsumptionpersquaremetrehasdeclinedoverallby3.4percent(previousyear:+ 5.5percent).Onereasonforthiswastheriseinemployeesworkingfromhomeduetothecoronaviruspandemic.

tRanSpoRt SeRviceS

ThePHOENIXgroupaimstocontinuallyreducetheGHGemissionscausedbytransport.Anefficientandeco­friendlylogisticssystemisbuiltonthefoundationsofourmodernvehiclefleet,atransparentdatabase,andaresource­efficientdrivingstyle.

Inthereportingyear,oursubsidiarytransmed,withcompaniesinAustria,BosniaandHerzegovina,theCzechRepublic,Germany,Serbia,Slovakia,andSwitzerland,coveredadistanceofover180mil-lionkilometres(previousyear:180millionkilometres).ThemajorityofthePHOENIXgroup’sdeliv­eriesareperformedbycarriersengagedbytransmedandotherorganisations.Theremainingtripsarecarriedoutbythevehiclefleetsrunbytheindividualsubsidiaries.

Comparedwiththepreviousyear,transportemissionsbycarriersdeclined,whereasemissionsbythecompany’sownvehiclefleetexperiencedaslightrise.Thisisduetothefactthat,intheUnitedKing-dom,deliveriespreviouslymadebycarriersarenowcarriedoutusingthecompany’sownvehicles.Thisfleethasalsobeenexpanded,andsomeofthevansusedinthepasthavebeenreplacedbyre-frigeratedvehiclesthatproducemoreemissions.

HeatinG eneRGy ReQuiReMent by inteRnal aRea anD eneRGy SouRce

electRicity conSuMption by inteRnal aRea anD GeneRation type1)

inkWh/m2 inkWh/m2

2018/19 2018/192019/20 2019/202020/21 2020/21

DistrictheatNaturalgasFueloil

OwnenergygenerationRenewableenergyConventionalenergy

56.3

13.8

40.6

1.9

51.9

12.6

38.0

1.3

53.7

12.5

39.1

2.1

0.2

25.7

70.7

96.694.8100.0

Transportemissionsbycarriers2)Transportemissionsduetoownvehiclefleet

tRanSpoRt eMiSSionS by Revenue, DiviDeD between coMpany anD tHiRD-paRty tRanSpoRt1)

2018/19

intCO2e /€million

2019/20 2020/21

1)Individualvaluesfor2018/19werecorrectedretrospectively.Thesevaluesthereforedifferfromthosepublishedinthe2018/19report.

2)TransportemissionsbycarriersexcludingNorway.

1)Thepercentagesofelectricityfromrenewablesourcesandowngenerationwerecollectedforthefirsttimeinreportingyear2020/21.

4.3 4.34.1

3.6 3.7 3.4

0.7 0.6 0.7

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Saving fuel Shortvehicletermsof30monthsonaverageallowtransmedtorunamodern,fuel­efficientfleet.Thecompanymaintainsadetailedoverviewofitsvehicles’features.Thismeansitcananalysetheannualmileageperbranch,informationaboutvehiclecategoriesandmodels,andthefueltypesused.Whenpurchasingnewvehicles,transmedensuresthattheycomplywithcurrentpollutantstandards.

Manysubsidiariestraintheirdriverstodriveinafuel­efficientmanner,e.g.Denmark,Estonia,FranceandGreatBritain. Inorder tooptimiserouteplanningbytakingenvironmentalconsiderations intoaccount,weimplementedtheKLEEBLATT(Cloverleaf)projectinGermany.Optimisingexistingrouteshelpstoreducethenumberofkilometresdrivenandtheamountoffuelconsumed,resultinginloweremissions and transport costs. In total, taking this action has cut driving distances by around 2.2millionkilometres.Byoptimisingrouteplanning,wehavesavedaround750tonnesofCO2equi­valents.Oursubsidiariesarealsotestingalternativedrivesystems.Forexample,anelectricdeliveryvanhasbeen inuse inSwedensinceSeptember2020, aneSprinter panel van isbeing tested in Germany,andadeliverytrialusingcargobikesisunderwayintheNetherlands.

GReenHouSe GaS FootpRint

Incalculatingourgreenhousegasfootprint,weareguidedbytheclassificationsystemestablishedbytheGreenhouseGasProtocol (GHGProtocol),whichrequirescompaniestotakevariousemis-sions intoaccount.Of these,wehave identified the followingasbeingmaterial for thePHOENIXgroup:

»  As part of our KLEEBLATT project, we have optimised route planning by taking environmental considerations into account. «

coverage of Scopes 1 to 3

Scope Definition GHG Protocol categories taken into account

Scope1 Directemissionsfromthecompany’sowncombustionprocesses(stationaryandmobileequipment)

•Heating(fueloil,naturalgas)•Transport(companyvehiclefleet)•Companycars•Refrigerant

Scope2 Indirectemissionsfromthepurchaseofgrid­boundenergy

•Heating(districtheating)•Electricity

Scope3 Otherindirectemissions •Transportbycarriers

Scope t co2e %

Scope1 Fueloil 593 0.3

Naturalgas 13,252 6.4

Companyvehiclefleet 20,969 10.2

Companycars1) 7,551 3.7

Refrigerants 7,854 3.8

Total 50,219 24.4

Scope2 Electricity 58,755 28.5

Districtheat 4,042 2.0

Total 62,797 30.5

Scope3 Transportsbycarriers1) 92,913 45.1

Total (Scope 1 to 3) 205,929 100

eMiSSionS by Scope

1)ExcludingemissionsfromNorway.

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Asisgenerallythecaseinthewholesaletrade,thetransportofourgoodsaccountsforasignificantproportionofouremissions.InaccordancewiththeGHGProtocol,weassigntheCO2emittedbythevehiclefleetownedbyPHOENIXtoourScope1emissions.Thisfigureamountedto10.2percentofourtotalemissionsinthereportingyear(previousyear:8.3percent),whereasemissionsbycarriers(Scope3)werethesourceofalmosthalfofourtotalemissionsat45.1percent(previousyear:48.5percent).FurthermaterialsourcesofemissionsaretheheatingofourbusinesspremisesinScope1andScope2(fueloil,naturalgas,districtheating)andelectricityinScope2.

Rise in absolute greenhouse gas emissions Measuredagainstrevenue,thePHOENIXgroup’srelativeGHGemissionsdecreasedslightlyby1.3percent in thereportingyear (previousyear:+ 2.7percent).ThereducedconsumptionofdistrictheatingandelectricityandthedeclineintransportjourneysbycarriersledtoafallinbothScope2andScope3emissions.Atthesametime,Scope1emissionsincreased.Thiscanbeattributedtothefactthatdatacollectiontocalculateourgreenhousegasfootprintwasbroadenedtoincludecom­panycarsandrefrigerantinthereportingyear.

Ourabsoluteemissionsroseby3.6percent(previousyear:+ 7.5percent).PartofthisrisecanbeexplainedbythewideningofdatacollectioninScope1toencompasscompanycarsandrefrigerant.Nevertheless,wemustintensifyoureffortsandmeasuresinordertomakeourcontributiontowardsachievingtheobjectivesoftheParisAgreement.

transparency with regard to GHG emissionsInordertocontributetowardsgreatertransparencyintermsoftheemissionofgreenhousegasesinthedeliveryprocess,particularlyinitsadditionalbusiness,transmedidentifiesemissionsalongthelengthofthetransportchain–fromreceipttocollectionthroughtothelastmile.Whenrequestedbyitscustomers,transmedsendsreportsbye­mailthatshowtheGHGemissionsattributabletothedeliveryofallpackagesandacalculationoftheaveragefootprintperpackage.Bydoingso,thecom-panyaimstoincreaseawarenessoftheharmfulemissionsfromtransportandachieveasignificantreductioninthemediumterm.

2018/19 2019/20 2020/21

eMiSSionS by ReGion1)

intCO2e

NorthernEuropeEasternEuropeWesternEuropeGermany

1)IndividualvaluesoftheGermanlocationsfor2018/2019werecorrectedretrospectively.ThevalueforGermanyandthetotalvaluethereforedifferfromthereforedifferfromthosepublishedinthe2018/19report.Emissioncalculationsforcompanycars(Scope1)andtransportbycarriers(Scope3)excludingNorway.

eMiSSionS by Revenue by Scope1)

2018/19

intCO2 e/€million

2019/20 2020/21

Scope3emissionsScope2emissionsScope1emissions

1)Individualvaluesfor2018/19werecorrectedretrospectively.Thesevaluesthereforedifferfromthosepublishedinthe2018/19report.Emissioncalculationsforcompanycars(Scope1)andtransportbycarriers(Scope3)excludingNorway.

184,886198,801 205,929

15,99316,992 18,967

52,296

78,980

42,374

70,396

56,123

53,239

72,776

55,794 55,686

7.3 7.5 7.4

3.6

2.5

1.2

3.7

2.6

1.2

3.4

2.2

1.8

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MateRial inputS

ThePHOENIXgrouptakescaretoconservenaturalresourcesinitsadministrativeprocesses.Thatiswhyweareworkingsteadilytoreducepaperconsumptionbymeansofdigitisation.Forexample,theGermanfinancedepartmentceasedprintingoutinvoicesandreceiptsseveralyearsago.OurFinnishsubsidiaryhas introducedadocumentmanagementsystemthatallowsalldocumentstobepro-cessedelectronically.InSwedenandothersubsidiaries,asimilarsystemisinplaceforcontracts.WehavelaunchedEurope­wideprojectsinvolvingtheelectronictransmissionofbatchinformationand,incooperationwithmanufacturers,wealsoaimtoacceleratethedigitalisationofprocesses.

Moreover,thePHOENIXgroupusesthetravelexpensesprogramWinTripthroughoutthecompany,thusfacilitatingapaperlessprocess.Toconserveresources,officeprintersandcopiersinourGer-mansitesaswellasinmanyothercountriesaregenerallysettoprintdouble­sidedandinblackandwhite.

More environmentally responsible packaging and shopping bagsWeuseFSC­certifiedpackagingforourcategorybrandproductsintheRetailbusinessarea,totheextentthatthisispossibleforparticularproducts.Individualsubsidiarieshaveintroducedadditionalmeasuresaimedatconservingresourcestoo.Forexample,ourpharmaciesintheNetherlandsuserecyclablepackagingmaterial.

Wearealsoswitchingtoalternativestoconventionalplasticwhenitcomestocarrierbags.Oftheapproximately33millioncarrierbagsusedinourpharmacies,10.5percentaremadeofrecycledpaperorplastic.Furthermore,82.4percentofthepapercarrierbagsnotmadeofrecycledmaterial(26.9percentofallthecarrierbagsintherange)beartheFSClabel.Oftheplasticcarrierbagsnotmadeofrecycledmaterial(54.7percentofallthecarrierbagsintherange),92.8percentaremadeofrecyclableplastic.Itisourgoaltofurtherincreasetheproportionofcarrierbagsmadefromre­cycledandbio­basedmaterials.Asweonlybegantoswitchoverattheendof2019,theremainingstocksmustfirstbeusedup.For thenext reportingyear,weexpectasignificant increase inbio­basedcarrierbags.

TomarkWorldEnvironmentDayinJune2019,BENUpharmaciesinSerbiaandSlovakiaofferedtheircustomersfreecarrierbagsmadefromrecycledPETbottles.OnWorldEnvironmentDayinthere-portingyear,thebagsweresoldfor99centsinSlovakia.TheBENUpharmaciesinLatviaorganisedacampaigninwhichinfluencersnotonlyadvertisedtheeco­friendlycarrierbagsbutalsopromotedanenvironmentallyfriendlylifestyleingeneralaswellastherightwaytodisposeofoldmedicines.

Wealsotakecaretouseresourcesefficientlyinourdistributioncentres,forexamplebysupplyingdeliveries to pharmacies in reusable plastic containers. Our depot in Cologne, Germany, has ex-changed shrink­wrapping for strappingwhen handling palletised goods. Furthermore,we plan tograduallyswitchfromsingle­usetoreusableplasticbagsfordeliveriesofanaestheticsthroughoutGermany.

Quantity %

Paper 11,407,641 34.2

ofwhichrecycled 2,444,743 7.3

ofwhichnotrecycled 8,962,898 26.9

Plastic 19,309,557 57.9

ofwhichrecycled 1,077,356 3.2

ofwhichnotrecycled 18,232,201 54.7

Bio­basedmaterials 2,607,894 7.8

Othermaterials 27,452 0.1

Total 33,352,544 100

caRRieR baGS by MateRial

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waSte

Oneofourmostimportantenvironmentalprotectionmeasuresisthereductionofhazardouswaste,aproblemassociatedwithhighcostsforthePHOENIXgroupandwithecologicalrisks.Forourbusi-ness,inadditiontooilsludgesandvariouschemicals,thisaboveallrelatestopharmaceuticalwaste,akeyareaforus.Wehavealegalobligationtotakeexpiredproductsoritemswithdamagedpack­agingoutofthesupplychainandtoproperlydisposeofthemashazardouswaste.Werecordthecostsofnegativedifferencesresultingfrommissedexpirydatesanddamagetopackagingasakeyindicatorandcontrolparameter.Wealsomonitorthevolumeofwastethatisproduced.Aswellashazardouswaste,PHOENIXgroupprocessesgeneratenon­hazardouswaste.Thisincludesorganicwaste,paperandcardboard,electronicwaste,metal,wood,plastics,glass,andtextiles;allofwhichwesendforrecyclingwherepossible.

avoiding hazardous waste Toensurethattheygenerateaslittlehazardouswasteaspossible,thesubsidiariesofthePHOENIXgroupmakeuseoftheirindividualopportunitiesforactionandundertakeawiderangeofmeasures.Alongsideother steps, theapplicationof standardpracticesandoperatingprocedureswithin thescopeofqualitymanagementaswellascompliancewiththeguidelinesongooddistributionpractice(GDP)arecrucialhere.Akeyroleisplayedbythetraininggiventoouremployeesinthedistributioncentres.Thiscoverscarefulhandlingofpackages, visual inspections toensure thatpackaging isundamagedandthepackagesealforprescriptionmedicinalproductsisintact,checkingtheexpir­ationdate,acautiousapproachtocuttingopenboxes,andensuringoptimaltemperaturesduringtransportationandincoldstorage.

Wewereabletoreducespecifichazardouswasteby12.7percentincomparisonwiththepreviousyear(previousyear:– 10.9percent).Theabsoluteamountofhazardouswastealsodecreasedby 9.7percent(previousyear:– 5.5percent).Thisdevelopmentisdueontheonehandtothemeasurespreviouslymentioned. Another reason lies in the flooding of awarehouse in Italy in 2018,whichmeantthatlargequantitiesofmedicineshadtobedisposedofintheyears2018and2019.

2018/19 2019/20 2020/21

PharmaceuticalWaste 63.1 54.1 47.5

Oilsludges notrecorded

0.7 0.7

Otherhazardouswaste 1.4 2.7 2.0

Total 64.5 57.5 50.2

kg/€million

HaZaRDouS waSte by Revenue

Projects supporting pharmacy returnsSinceDecember2020,ourDanishsubsidiaryNomecohasbeenparticipatinginapilotprojectwiththeaimofreducingtheincinerationofpharmaceuticalwasteandincreasingrecycling.Aspartoftheproject,endconsumerscanhandinused injectionpensatselectedpharmacies,andNomecore-turnsthemtothemanufacturer.

BENUinLatviahasrunvariouscampaignstopromotetheproperdisposalofoldorexpiredmedi-cines.Atthesametime,disposalpointsforoldmedicinesweresetupineachpharmacy.Ourphar-maciesinvariouscountriestakebackexpiredpharmaceuticals.

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Wehavepooledallouractivitiesaimedatcuttingminusdifferencesinourcompany­wideSAFEpro-gramme.Thesenegativedifferencesincludefinancialburdensthatresultnotonlyfrombreakageandexpirationbutalsofromdeliveryerrors,missingparts,andstockclearances.Inthereportingyear,theabsolute costs of negative differences amounted to €36.9million (previous year: €29.3million),whichcorrespondstoaspecificnegativedifferenceofaround€1.31(previousyear:€1.07)per€1,000ofrevenue.Atthesametime,wenegotiatewithourpartnersuppliersinthepharmaceuticalindustrytoobtainoptimisedreturnsconditionsforitemsthatarenolongerfitforsale.ThefiguresfromtheRetaildivisionintheNetherlandswereintegratedforthefirsttime. Inaddition,theincreaseinthenegativedifferencesreflectsthecoronaviruspandemic,whichhasresultedinashiftinthedemandfordifferentcategoriesofmedicines.

Reclaiming recyclable wasteAtotalof24,435tonnes(previousyear:25,504tonnes)ofnon­hazardouswastewereproducedinthere-portingperiod,equatingtoareductionof4.2percent(previousyear:– 2.1percent).Aboveall,thisdevelop-mentcanbeattributedtoafallinthegenerationofmixedwasteandorganicwaste.Bycontrast,thecon-sumptionofpackagingmaterialshasriseninsomecompaniesasaresultofthecoronaviruspandemic.

Mostofourwasteisrecycledorcomposted.Thus,73.1percentofnon­hazardouswaste(previousyear:68.0percent)re­enteredthematerialscycleinthereportingyear.Anincreaseintherecyclingratecouldbeachieved.Anyremainingunwantedmaterials,resulting,forexample,frompowergenerationandmixedwaste,aredisposedofinanenvironmentallyfriendlymannerbyspecialistcompanies.

LegislationinGermany,suchastheCommercialWasteOrdinance(GewAbfV)andthePackagingAct(VerpackG),hasledtoPHOENIXGermanyachievinganevenmoreimpressiverecyclingrate.Theselawsrequireustofullydocumentourdisposalofcommercialwaste.

Tonnes %

Recycling 17,866.9 73.1

Incinerationwithenergy/heatrecovery

2,061.0 8.4

Incinerationwithoutenergy/heatrecovery

1,725.0 7.1

Composting 411.3 1.7

Landfill 397.0 1.6

Otherdisposalmethods 1,974.1 8.1

Total (without recycling) 6,568.4 26.9

Total 24,435.3 100

non-HaZaRDouS waSte by DiSpoSal MetHoD

non-HaZaRDouS waSte by ReGion

intonnes

2018/19 2019/20 2020/21

26,075 25,504 24,4354,039

3,857 3,978

8,721

8,048

2,945

10,174

8,917

3,357

10,185

8,105

3,688

NorthernEuropeEasternEuropeWesternEuropeGermany

MinuS DiFFeRenceS

in€ 1,000revenue

2016/17 2017/18 2018/19 2019/20 2020/21

1.071.051.241.31 1.31

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eMployMent1)

Thesuccessofourcompanyreliesoncommittedemployees.Atthesametime,wefacechallenges,suchastheshortageofskilledpersonnelanddemographicchange,towhichwemustfindanswersthroughacoherentpersonnelstrategy.This isa responsibilityofCorporateHR,which reportsdi-rectlytotheExecutiveBoard.

InthecodeofconductthatappliestoallemployeesofthePHOENIXgroup,wepledgetoupholdtheprinciplesofequalopportunitiesandmutualrespect.Asaresult,everymemberofstaffreceivesthesame treatmentand thesameopportunities ineveryaspectof theemployment relationship.Webaseouremployees’remunerationontheirrespectivequalifications,professionalandpersonalapti-tude,aswellasontheirperformance.

pHoenix group employees Attheendoffiscalyear2020/21,thePHOENIXgroupemployed39,532employees(previousyear:39,013)within27countriesinEurope(previousyear:27).Thestaffinglevelthusroseby1.3percentincomparisonwiththepreviousyear(previousyear:5.0percent).At5,441(previousyear:5,685),the

03SuppoRtinG eMployeeS We can only be successful as a company by having motivated employees with the right qualifications. When competing for well-trained, skilled personnel, we want to offer our staff attractive working condi-tions as well as good opportunities for career growth and further training. Furthermore, open dialogue and good relations between managers and their employ-ees are key elements of our corporate culture. A safe and healthy work environment also has a major im-pact on the satisfaction of our workforce.

number %

Germany 4,411 11.2

WesternEurope 14,493 36.7

EasternEurope 12,661 32.0

NorthernEurope 7,967 20.1

Total 39,532 100

eMployeeS by ReGion

1)Theemployeefiguresstatedwerecorrectasatthereportingdateof31January2021andthereforedeviateslightlyinsomecasesfromthefiguresreportedinpreviousyearsandintheannualreport.

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largestnumberofemployees is registered in theUnitedKingdom,followedbytheNetherlandsat5,079(previousyear:5,084),Norwayat4,420(previousyear:4,435),andGermanyat4,411(previousyear:4,404).

TheproportionoffemalestaffemployedbythePHOENIXgroupwasaround70.4percentinthere-portingyear(previousyear:70.9percent).Ofthesefemaleemployees,16,011(previousyear:15,445)wereinfull­timepositions,whereasthenumberofmeninfull­timeemploymentwas9,182(previousyear:9,118).Thetotalnumberoffulltimeequivalentshasincreasedby1.7percent(previousyear:6.7per cent) to 33,206 (previous year: 32,652). Part­time positions were occupied by 2,513 male PHOENIXemployees(previousyear:2,219)and11,826femalestaff(previousyear:12,231).Thepro-portionof employeesworkingpart­time thusamounted to36.3per cent (previous year: 37.0percent).AgeneralworksagreementontheintegrationofseverelydisabledpeoplehasbeeninplaceforPHOENIXGermanysince2011.

Attheendofthe2020/21reportingyear,thetopmanagementteamrepresentingallPHOENIXcom-panieswascomposedofatotalof13women(previousyear:13)and71men(previousyear:95),whichputstheproportionofwomenat15.5percent(previousyear:12.0percent)1).TheExecutiveBoardofthePHOENIXgroupconsistsofsixpeople,sixofwhomweremen.

tRaininG anD DevelopMent

Withparticularregardtotheincreasingshortageofskilledpersonnel,webelieveit isimportanttomotivateouremployeesandstrengthentheirconnectiontoourcompany.Weattachgreatimport­ancetorecognisingtheirpotentialandsystematicallydevelopingtheirabilities.Toachievethis,weuseanefficientandcomprehensivesystemoffurthertraininginallcountries,whichallowsourstaffto enhance their professional skills and breathe new life into their personal development. In the2020/21reportingyear,employeesandmanagers inGermanyparticipated inatotalof23educa-tionalactivities(previousyear:95).Thereasonforthereducedfigureliesinthecoronavirusrestric-tions,withtheremainingfurthertraininggenerallytakingplaceonline.

Weruninductionprogrammesandtrainingcoursesforourstafftosuittheirparticularareaofre-sponsibility.Forouremployeesinthedistributioncentres,trainingingooddistributionpractice(GDP)formedicinalproductsforhumanuseismandatory.WealsogiveallourstafftrainingonourCodeofConduct,anti­corruptionguidelines,andcompetitioncomplianceguidelines,aswellasondatapro-tection.Inaddition,ouremployeesreceiveregularfurthertraininginoccupationalhealthandsafety.Furthermore,weofferspecificopportunitiesforprofessionaldevelopmentdependingonanemploy-ee’sareaofactivity,rangingfromforeignlanguagestoITandpersonnelmanagement.Duetorestric-tionsoncontactduringthecoronaviruspandemicinthe2020/21reportingyear,wemainlyusede­learningsystems,withwhichouremployeeswereabletoundertakeefficient,independenttrainingonavarietyoftopics.

OneelementofstaffdevelopmentatthePHOENIXgroupistheannualemployeereview.Thesere-viewsmaybeorganizeddifferentlyinthevarioussubsidiaries,butstructuredfeedbackandsupportforprofessionaldevelopmentiscommontoall.

1)Theterm“topmanagement”referstotheCorporateDirectors;theManagingDirectorsofthesubsidiariesADG,transmed,andPXGPharma;theManagingDirectorsineachcountry;andtheFinance,Retail,Logistics,andSalesDirectors,whoeachreporttotheManagingDirectoroftheirrespectivecountry.

eMployeeS by eMployMent level

2018/19 2019/20 2020/21

asat31January

37,140 39,013 39,532

62.0 % 63.7%

36.3% Full­timePart­time

38.0 %

63.0 %

37.0 %

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Development programmes for managersThePHOENIXgroupendeavourstofillmanagementpositionsprimarilyfromwithinthecompany.Weoffertalentedmanagersatdifferent levelsappropriate internationaldevelopmentprogrammesforthevariousmanagementlevels.Theseprogrammesfocusontheongoingdevelopmentofleadershipskills,thepromotionofacultureofcooperationacrossnationalbordersandfunctions,networkingamongmanagers,andgroup­wideknowledgesharing.

AspartofthedevelopmentinitiativesorganisedbyPHOENIXGermany,employeesarecalledupontohelpshapethePHOENIXcorporateculture.Managersandtalentedindividualsworkindependentlyandwithoutsupervisiononfuture issuesthatareorwillbeofrelevancetoPHOENIX.Networkingamongemployeeshasamajorroletoplayhere.

apprenticeships and dual study programmesThePHOENIXgroupoffersyoungpeopleawiderangeofwaysinwhichtostarttheircareers,includ-ingworkexperienceplacements,apprenticeships,anddualstudyprogrammes.Weregularlypartici-pate invariousdifferentcareersanddegree informationeventsaswellasapprenticeship fairs in order tomake interestedapplicantsawareofour company. Infiscal year2020/21, thePHOENIXgroupemployed107apprentices(previousyear:109)and13studentsondualprogrammes(previ-ousyear:14)atitsGermansubgroup.Dualstudydegreesgivestudentstheopportunitytocompletepartoftheirtrainingatoneofoursubsidiaries.

DialoGue anD coMMunication

Beingseenasanattractiveemployer–inotherwords,theinternalandexternalperceptionofthePHOENIXgroupasanemployer–isanimportantprerequisiteforthelong­termsuccessofthecom-pany.Wecultivateacorporateculturebasedondialogue,whichisshapedbythevaluesenshrinedinourcorporatemissionandourgroup­wideleadershipguidelines.Ontheonehand,communicationtakesplaceviatheannualemployeeperformancereviewbetweenmanagersandemployees.Ontheotherhand,wewanttoassessouremployees’levelofsatisfactionintheirjobsbymeansofdirectsurveys.Wealsoaimtoenhancedigitalemployeecommunication.OurstaffcanuseourSpeakapemployeeapptocommunicateacrossdivisionsandnationalborders.Asaresult,internalcommuni-cationshouldbecomemoreinteractive,transparent,andrelevant.TheapphasbeenintroducedinallPHOENIXcountriessince2020,andmorethan25,000employeeshavealreadysignedup.

employee survey follow-up processThePHOENIX group attaches particular importance to its employees’ opinions, satisfaction, andmotivation.Thelastgroup­wideemployeesurveytookplaceinautumn2018.WedefinedouractionareasforGermanyas“StrategyandleadershipbytheManagementBoard”,“Interfaces”,and“Changes,ideas, anddecisions”.Aspartof the follow­upprocesswith themotto “#bettereveryday–a little bit better every day”, the divisions and distribution centres have so far implemented around 140 measures.Themainthemeswereappreciation,workplacebenefits,workenvironment/organisation,health,information/communication,processes,andcooperation.

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Thenextemployeesurveyisscheduledforautumn2021.Wewanttousethisopportunitytolookagainatthecurrentstatusoftheactionareasandtheemployeecommitmentindex(ECI)tofindoutwhetherthemeasuresdevisedhaveresultedinimprovements.TheExecutiveBoardofthePHOENIXgrouphasreceivedprogressreports fromthe individualcountriesonallmeasures.Ourgoal is toachieveacontinuousimprovementinthecommitmentofouremployeestothecompany.

Dialogue with employee representativesInadditiontoourdirectcommunicationwithouremployees,thePHOENIXgroupsetsgreatstorebyitscooperativerelationshipwiththeemployeerepresentatives.Tothisend,itfollowsinternationallyrecognisedstandardsaswellasthelegalframeworkofeachindividualcountry.OneexpressionofthisistheworkscouncilfortheEuropeancompany(“SE”),whichreflectstheinternationalnatureofthecompanystructure.Thispanelof38members(previousyear:38)engagesindialoguewithcom-panymanagementoncross­borderissuesandprojects,suchastheemployeesurvey,work–lifebal-ance,andoccupationalhealthmanagement.Assuch,theemployeerepresentativesarealsoactivelyinvolvedinimportantcompanysustainabilitytopicsatgrouplevel.

occupational HealtH anD SaFety

Wehaveaspecialresponsibilityforthehealthofouremployeesandthereforetakecaretoensuresafeworkingpractices.Aspartofourqualitymanagementsystem,weguaranteestrictcompliancewiththerelevantlawsandregulationsoftheindividualcountriesandoftheEuropeanUnion.System-aticriskassessmentsforeachworkplacearemandatory,as isthe implementationofappropriatepreventativemeasures.Duringthecoronaviruspandemicinparticular,rapidandresponsibleactionwasandisstillrequiredtoprotectouremployeesandsafeguardhealthcare.InGermany,wesetupaCrisisTeamforthispurposeinMarch2020.Topromoteemployeehealth,weintendtoexpandouroccupationalhealthmanagementsysteminfuture.

preventing accidentsOccupationalsafetyrulesandregularemployeetrainingmakethegreatestcontributionstoaccidentprevention.Themaintopicsarefireprotection,workplaceergonomics,correctliftingtechniques,andthesafeoperationofmachineryandequipmentinthedistributioncentres,especiallyforklifttrucks.Verycloseattentionisalsopaidtoprotectiveworkwearinalloursubsidiaries.

WithinthePHOENIXgroup,weregistered375injuries(previousyear:409)resultingfromaccidentsatworkduringthereportingperiod.Comparedwiththepreviousyear,thiscorrespondstoareductionof8.3percent(previousyear:−2.4percent).ThenumberofaccidentsinGermanyaswellasinEast-ernandNorthernEuropedeclined.Withatotalofaround60.3millionactualworkinghours(previousyear:58.2million),thisequatestoacompany­wideaccidentrateof6.2accidents(previousyear:7.0)peronemillionworkinghours.Incomparisonwiththepreviousyear,thisisareductionof11.4percent(previousyear:12.5percent).

total Rate oF woRK-RelateD injuRieS

2018/19 2019/20 2020/21 ∆ 2019/20 – 2018/19

∆ 2020/21 – 2019/20

Actualworkinghours (millionh)

52.7 58.2 60.3 + 10.4% +3.6%

Lost­timeinjuries1) 419 409 375 – 2.4% – 8.3%

Totalrateofwork­relatedinjuries(permillionh)2)

8.0 7.0 6.2 – 12.5% – 11.4%

1)Reportingwasperformedinaccordancewithnationallegislationandmaythusalsoincludecommutingaccidents.Thefiguresencompassallaccidentsthatresultinatleastoneday’slosttime,knownaslost­timeInjuries(LTI).

2)Changestothepreviousyear’sreportarebasedonaretroactiveadjustmenttothedatacollectionsysteminSwitzerland.

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Safeguarding and promoting healthInthepastyear,wehaveimplementedvariousmeasurestoprotectouremployeesfromexposuretothecoronavirus.Inourdistributioncentres,weinstalledprotectiveequipmentandimplementedrulesregardingsocialdistancingandhygiene.Mandatorymaskwearingwasintroducedasanadditionalprecautioninareasandworkingsituationswhereitisnotpossibletomaintaina1.5­metredistance.Wethereforeprovideouremployeeswithequipmentsuchasmasksandworkgloves,offerstafftheoptiontoworkfromhome,andcommunicateallsafetyprecautionsandhygienemeasuresviaourSpeakapemployeeapp.

Anoccupationalhealthmanagementsysteminthesubsidiarieshelpstopromoteemployeehealthanddecreasetheillnessratethroughnumerousprojects.Theseincludehealthdaysatthedistribu-tioncentres,whichfocusonmeasuressuchasearlycancerdiagnosis,adviceonmanagingstress,andhealthyeating.Thecoronaviruspandemicmeantthatourhealthdayscouldnottakeplaceasplannedduring the reportingyear. Instead,PHOENIXprovided itsemployeeswith temporary, freemembershipofonlinefitnessprogrammesandvitaminCsupplements.

Several subsidiaries also offer their employees free health checks and optional flu vaccinations;manysupplytheirstaffwithweeklyfruitbaskets.Additionalinitiativesarealsoavailableinthevariouscountries,suchasthecooperationwithpmeFamilienserviceinGermany.Thisorganisationsupportsemployeesthroughdifficultsituationsintheirprivateandprofessionallivesbyprovidingadviceandservices.EmployeesinGermanyandtheUnitedKingdomalsohavetheoptiontoleasecompanybi-cycles.Themembersofstaffchooseabicycle,thenPHOENIXleasesitandentrustsittoitsemploy-ees.

»  Eighty-five per cent of employees were satisfied with how PHOENIX managed the coronavirus crisis. «

Aswellascorporateintegrationmanagement,effectiveandrespectfulconversationsbetweenman-agersandemployeesaboutreturningtoorabsencesfromworkmakeanimportantcontributiontoo.Inspiteofdelayscausedbythecoronaviruspandemic,wearecontinuingtoworkontheexpansionofouroccupationalhealthmanagementsystematallsitesandinalldivisionsofthecompany.Inthereportingyear,the illnessratewas4.46percent(previousyear:3.94percent)andhasthusrisencomparedwiththepreviousyearduetothecoronaviruspandemic.

SicKneSS Rate

in%

2016/17 2017/18 2018/19 2019/20 2020/21

3.944.084.054.124.46

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pRioRitieS

“WedeliverhealthacrossEurope”–thisisourmission.Itguidesourchoiceofareastosupportaspartofoursocialcommitment.Aboveall,wesupportpharmaceuticalresearch,projectsbenefitingthecommongood,charitableorganisationssuchashospitalsandchildren’sday­carecentres,aswellasschoolsanduniversities.Keycontributionsaremadebygroup­wideand local initiatives in thevarious countries. We make a long­term commitment to selected flagship projects and simul­taneouslysupportsmallersocial initiatives in thevicinityofoursites.Ouremployeesarealso in-volvedinmanydifferentactivitiesthatbenefitthecommongood.Wesupportthemintheirefforts,suchasbytoppingupthedonationstheyhavecollectedbyacertainamount.DonationsmadebythewholeofthePHOENIXgroupinfiscalyear2020/21totalled€ 749,443(previousyear:€ 881,182).

04coMMitMent to SocietyThe PHOENIX group considers it important to as-sume responsibility and contribute to the common good, even beyond the scope of our core business – in fact, this is integral to our corporate philosophy. We have summed up our approach to social commit-ment under the motto “Together for a healthy future for children”. By the end of 2021, we want to sharpen our focus on our social commitment throughout the group.

FocuS oF ouR Social coMMitMent

promotingpharmaceutical

research

Group-widecharitable projects,such as support forKULTURBRAS e.V.

in Fortaleza,Brazil

Helping to securefuture generations ofqualified personnel

by supporting schoolsand universities

Supportingcharitable institutionssuch as hospitals and

day-care centres,as well as regional

institutions

» toGetHeRFoR a

HealtHy FutuReFOR CHILDREN «

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a group-wide focus on social commitmentAcompany’ssocialcommitmentisalsoreferredtoasitscorporatecitizenship.Tohelpusmakeamoretargetedandeffectivecontributiontothecommongood,weintendtogiveouractivitiesinthisareagreaterstrategicdirectioninfutureandtosharpenourfocusonthemthroughoutthegroupbytheendof2021.TheSustainableDevelopmentGoals(SDGs)andtheirsub­goalswillserveusasabenchmarkforevaluatingourcontributiontosociety.

ensuring compliant behaviourItisimportanttothePHOENIXgroupthatalldonationandsponsorshipactivitiesarecarriedoutinaccordancewithlegalrequirements.ThePHOENIXanti­corruptionguidelines–whichapplytothewholegroup–mustthereforealwaysbeobservedwhenweorganiseourprojects.Wealsofollowourguidelinesfor» Donations and Sponsorship.Thisdocumentprimarilycontainscriteriaandhelpfulinfor-mationfortheselectionofsuitableprojectsforallsubsidiariesandourpartners.Italsodefinestheactivitiesthatwillnotbesupported.EventsheldbypoliticalpartiesorbranchesofgovernmentandprojectsthatgeneratecommercialadvantagesforthePHOENIXgrouporcoulddamageourcom-pany’sreputationarenotpermissible.Theguidelinesareapplicablethroughoutthegroup–oursub-sidiariesworkwithin theseparameters tomakedecisionsata local levelabout theprojects theysupportintheirrespectiveareas.

»  By the end of 2021, we want to sharpen our focus on our social commitment throughout the group. «

HealtH anD eDucation

Forover25years,thePHOENIXgrouphasbeenmakingdonationstoKULTURBRASe.V.,anassocia-tionbased inGermanyandBrazil.Theassociationrunsaday­carecentre inapoordistrictof theBrazilian city of Fortaleza, inwhich children aged between three and thirteen attend school and receive regular meals. The administrative functions in Germany are undertaken by volunteers. PHOENIXhasmadeacommitmentthatoneofitsemployeeswillalwaysbeinvolvedwiththeasso-ciation.

OurEuropeansubsidiariesarealsoactiveintheirlocalareasinavarietyofways.Sincethestartof2019,BritishpharmacybrandRowlandshasbeentheofficialsponsoroftheBritishHeartFounda-tion,whichfundsresearchintoheartandcirculatorydiseases.ItscampaignsaimtoraiseawarenessofcardiovasculardiseasewithinBritishsociety.SupportfortheQueenSilviaChildren’sHospitalhascontinuedinSweden.OursubsidiariesinLatviaandRomaniaorganisedblooddonationcampaigns.TheRomaniansubsidiaryalsooffersfinancialassistancetoemployeeswithaclosefamilymemberwhoisseriouslyill. InHungary,fundingisprovidedtosupportuniversitystudyprogrammesinthefieldsofpharmaceuticalscience,diversity,anddigitalisation.

promoting fundamental researchThePHOENIXPharmaceuticsScienceAwardhasbeenoneofourflagshipprojectsformorethan 20 years. Its aim is to maintain and publicise cutting­edge research in Germany – and therebystrengthenthepharmaceuticalsupplychain.Theaccolade,withatotalvalueof€40,000,isoneofthemostprestigiousscienceprizesintheGerman­speakingworldandtheonlyawardthatrecognisesthelatestworkfromanentirescientificfield.Everyyear,anindependentjurysiftsthroughinnovative,originalworkwithpharmaceuticalrelevancefromGermany,Austria,andSwitzerlandtoselectprize­winners infourcategories.ThroughourScienceAward,wepromotefundamentalpharmaceuticalresearch.

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RepoRt pRoFile

Foundation and reporting principlesThePHOENIXgroupaimstocommunicatetransparentlyandtoseekdirectdialoguewithitsstake-holders.ThroughourSustainabilityReportcoveringfiscalyear2020/21,entitled“Dependable.Action.Together.”,weprovidecomprehensiveinformationaboutourcompany’ssustainabilityactivities.Thisreport has been prepared in accordancewith the GRI Standards: Core option. The “Dependable. Action.Together.”reportwassubmittedtotheGlobalReportingInitiative(GRI)forreviewbytheGRIMaterialityDisclosuresService,whichconfirmedthatthe“MaterialityDisclosures”(102­40to102­49)havebeencorrectlylocatedinthereport.

The PHOENIX group has published one sustainability report annually since fiscal year 2014/15. Althoughthesustainabilitydataforfiscalyear2019/20wasrecordedandevaluated internally,nosustainabilityreportwaspublished.Thiswasduetoorganisationalrestructuringandnewresponsi-bilities.

Thisreportrelatestothefiscalyearfrom1February2020to31January2021and,wheneverpos­sible,alsocontainscomparabledatarelatingtothepreviousyearoryears.Inthisreport,wedescribethedevelopmentandtheresultsofourcompany’ssustainabilityactivitiesfromallofthesubsidiariesandtheirdomesticaffiliates.Thefigureshavebeenroundedinthetextand,insomecases,inthetables.

basis of consolidationGRi 102-45, GRi 102-48

ThetermPHOENIXgroup refers to theentirePHOENIXgroupasdepicted in the2020/21AnnualReport.IntheUnitedKingdom,atotalof30branchesoftheRowlandsPharmacychainweresoldandclosed.Inthereportingperiod,thecompanyincreasedinsizethroughthefollowingsignificantacqui-sitions.Infiscalyear2020/21,thePHOENIXgroupacquiredtwoadditionalpharmacychainsinRo-mania–RemediaandEcofarmacia.Wealsosuccessfully integratedintoourgroupthepharmacychainsandgroupsinRomania,theNetherlands,theCzechRepublic,andSerbiathathadbeenac-quiredpreviously.

Theprocessofcollectingdataforthe2020/21SustainabilityReportincludedthesecompanies,al-thoughitispossiblethatnotalldatawasavailableinthefirstyear.Conversely,datarelatingtothepharmaciesthathaveclosedhasbeenomitted.TheenvironmentaldataofoursubsidiaryinMonte-negrowerenotrecordedinthereportingyear.Figuresfromthepreviousyearwerecorrectedduetoanadjustmenttothedatacollectionprocess.Thisisexplainedinthecorrespondingfootnotes.

editorial notes Inthisreport,weusethemasculineandfeminineformsforgender­specificwording.However,thechosenformisintendedtorelatetopeopleofallgenders(m/f/x).Thecopydeadlineforthe2020/21SustainabilityReportwas28April2021.TheSustainabilityReportisalsoavailableinGermanandcanbedownloadedfromour» Website.

FuRtHeR inFoRMation

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liSt oF MateRial topicS

GRi 102-44, GRi 102-47, GRi 102-49

Material topics GRI Aspects Location of the impacts

Responsibleandethicalsupplychain ProcurementPractices External

Productsafety CustomerHealthandSafety,MarketingandLabelling Internalandexternal

Accesstohigh­qualitypharmaceuticalsandhealthcare IndirectEconomicImpacts External

Responsibleproductionofownbrands CustomerHealthandSafety Internalandexternal

Customersatisfaction CustomerHealthandSafety,MarketingandLabelling,CustomerPrivacy Internalandexternal

Resourceconsumption Energy Internalandexternal

Emissionsandclimateimpacts Energy,Emissions Internalandexternal

Energyuse Energy Internalandexternal

Wastemanagement Waste Internalandexternal

Employeehealth,safetyandwell­being OccupationalHealthandSafety Internal

Diversity,equity,andinclusion Employment,DiversityandEqualOpportunity,Non­Discrimination,MarketPresence Internal

Long­termtalentretention Employment,DiversityandEqualOpportunity,TrainingandEducation Internal

Staffdevelopment TrainingandEducation Internal

Fairworkingconditions Employment,Non­Discrimination,DiversityandEqualOpportunity Internal

Communityengagement IndirectEconomicImpacts External

Compliance Anti­Corruption,Anti­CompetitiveBehaviour,EnvironmentalCompliance,Socio­EconomicCompliance

Internalandexternal

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FactS anD FiGuReS

value creation for customers and the company

economic parameters

2018/19 2019/20 2020/21

Totaloperatingperformance 1) in€m 33,045.1 34,517.9 35,902.0

Revenue in€m 25,812.2 27,322.8 28,209.1

Totalincome in€m 2,781.2 2,941.9 3,052.7

ebitDa in€m 471.1 603.6 653.4

Earningsbeforetaxes in€m – 30.8 109.0 298.7

Equity in€m 2,806.6 2,832.4 2,959.7

Equityratio in% 33.5 29.9 28.6

Netdebt in€m 1,432.6 2,294.9 2,006.9

Companyrating(Standard&Poor’s) 2) BB+ BB+ BB+

Numberofemployees(total) 3) 37,140 39,013 39,532

Full­timeequivalents 3) 30,897 32,652 33,206

1)Totaloperatingperformance=revenue+handledvolume(handlingforservicecharge).2)CompanyratingforPHOENIXPharmahandelGmbH&CoKG.3)Thefiguresstatedforthenumberofemployeeswerecorrectasatthereportingdateof31January2021andthereforedeviateslightlyinsomecasesfromthefiguresreportedinpreviousyearsandintheannualreport.

Heating energy requirement by energy source

2018/19 2019/20 2020/21 ∆ 2019/20– 2018/19

∆ 2020/21– 2019/20

Total area in m2 1,690,096 1,706,780 1,716,113 + 1.0 % + 0.5 %

Fueloil inMWh 3,551 3,220 2,148 – 9.3 % – 33.3 %

Naturalgas inMWh 66,071 69,341 65,139 + 4.9 % – 6.1 %

Districtheat inMWh 21,140 23,540 21,563 + 11.4 % – 8.4 %

Total heating in MWh 90,762 96,101 88,850 + 5.9 % – 7.5 %

Fueloilbyarea inkWh/m2 2.1 1.9 1.3 – 9.5 % – 31.6 %

Naturalgasbyarea inkWh/m2 39.1 40.6 38.0 + 3.8 % – 6.4 %

Districtheatbyarea

inkWh/m2 12.5 13.8 12.6 + 10.4 % – 8.7 %

Heating by area in kWh/m2 53.7 56.3 51.9 + 4.8 % – 7.8 %

environmental protection

Heating energy requirement by region

in MWh Germany WesternEurope

EasternEurope

NorthernEurope

PHOENIXgroup

Fueloil 1,847 63 238 0 2,148

Naturalgas 10,708 30,213 22,141 2,077 65,139

Districtheat 4,327 0 5,849 11,387 21,563

Total heating 16,882 30,276 28,228 13,464 88,850

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electricity consumption1)

2018/19 2019/20 2020/21 ∆ 2019/20– 2018/19

∆ 2020/21– 2019/20

Totalarea inm2 1,690,096 1,706,780 1,716,113 + 1.0 % + 0.5 %

Electricity consumption

inMWh 160,208 170,635 165,781 + 6.5 % – 2.8 %

Electricity consumptionbyarea inkWh/m2 94.8 100.0 96.6 + 5.5 % – 3.4 %

1)Individualvaluesfor2018/19werecorrectedretrospectively.Thesevaluesthereforedifferfromthosepublishedinthe2018/19report.

electricity consumption by region (2020/21)

Germany WesternEurope

EasternEurope

NorthernEurope

PHOENIXgroup

Totalarea inm2 294,189 550,570 501,167 370,187 1,716,113

Electricity consumption

inMWh 26,729 58,212 31,096 49,744 165,781

Electricity consumptionbyarea inkWh/m2 90.9 105.7 62.0 134.4 96.6

emissions by scope1)

in t CO2e Emission source 2018/19 2019/20 2020/21 ∆ 2019/20– 2018/19

∆ 2020/21– 2019/20

Scope1 Fueloil 970 879 593 – 9.4 % – 32.5 %

Naturalgas 13,343 14,004 13,252 + 4.9 % – 5.4 %

Transport:companyvehiclefleet

16,794 16,465 20,969 – 2.0 % + 27.4 %

Companycars2) notrecorded

notrecorded

7,551 – –

Refrigerants notrecorded

notrecorded

7,854 – –

Total 31,107 31,349 50,219 + 0.8 % + 60.2 %

Scope2 Districtheat 5,775 7,329 4,042 + 26.9 % – 44.8 %

Electricityconsumption

59,109 63,446 58,755 + 7.3 % – 7.4 %

Total 64,884 70,775 62,797 + 9.1 % – 11.3 %

Scope3 Transport:carriers2)

88,895 96,678 92,913 + 8.8 % – 3.9 %

Total 88,895 96,678 92,913 + 8.8 % – 3.9 %

Total (Scope 1 to 3) 184,886 198,801 205,929 + 7.5 % + 3.6 %

1)Individualvaluesfor2018/19werecorrectedretrospectively.Thesevaluesthereforedifferfromthosepublishedinthe2018/19report.

2)ExcludingemissionsfromNorway.

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emissions by scope and region (2020/21)1)

in t CO2e Germany WesternEurope

EasternEurope

NorthernEurope

PHOENIXgroup

Scope1 6,886 21,360 17,581 4,392 50,219

Scope2 15,289 21,322 16,921 9,264 62,796

Scope3 33,511 36,298 17,794 5,311 92,914

Total 55,686 78,980 52,296 18,967 205,9291)Emissioncalculationsforcompanycars(Scope1)andtransportbycarriers(Scope3)excludingNorway.

Hazardous waste1)

in t 2018/19 2019/20 2020/21 ∆ 2019/20– 2018/19

∆ 2020/21– 2019/20

Pharmaceuticalwaste 1,628 1,481 1,342 – 9.0 % – 9.4 %

Oilsludges notregistered

18 21 – + 16.7 %

Otherhazardouswaste 37 74 57 + 100.0% – 23.0 %

Total 1,665 1,573 1,420  – 5.5 % – 9.7 %

1)Individualvaluesfor2018/19werecorrectedretrospectively.Thesevaluesthereforedifferfromthosepublishedinthe2018/19report.

Hazardous waste by region (2020/21)

in t Germany WesternEurope

EasternEurope

NorthernEurope

PHOENIXgroup

Pharmaceuticalwaste 137 160 191 854 1,342

Oilsludges 3 0 11 7 21

Otherhazardouswaste 1 7 8 41 57

Total 141 167 210 902 1,420

absolute minus differences

in € m 2016/17 2017/18 2018/19 2019/20 2020/21 ∆ 2020/21– 2019/20

Minusdifferences 31.9 30.9 27.3 29.3 36.9 + 25.9 %

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employees1)

2018/19 2019/20 2020/21 ∆ 2019/20– 2018/19

∆ 2020/21– 2019/20

Full­timeequivalents 30,897 32,652 33,206 + 5.7 % + 1.7 %

Total 37,140 39,013 39,532 + 5.0 % + 1.3 %

1)Asatreportingdate31January.

Supporting employees

employees by gender, type of employment, and region (2020/21)1)

Germany WesternEurope

EasternEurope

NorthernEurope

PHOENIXgroup

Femalefull­timeemployees 955 3,078 8,510 3,468 16,011

Malefull­timeemployees 1,545 3,210 2,815 1,612 9,182

Femalepart­timeemployees 1,508 6,803 1,199 2,316 11,826

Malepart­timeemployees 403 1,402 137 571 2,513

Total 4,411 14,493 12,661 7,967 39,532

1)Asatreportingdate31January.

absence due to sickness by region1)

in sick hours (in million h) 2018/19 2019/20 2020/21

Germany 0.53 0.54 0.53

WesternEurope 0.99 1.03 1.20

EasternEurope 0.44 0.59 0.83

NorthernEurope 0.58 0.53 0.61

Total 2.54 2.69 3.17

1)Totalpaidandunpaidhours(millionhours).

employees covered by collective agreement by region (2020/21)

Germany WesternEurope

EasternEurope

NorthernEurope

PHOENIXgroup

Total 4,235 9,617 320 5,952 20,124

Sharein% 96.0 66.4 2.5 74.7 50.9

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SuStainability RepoRt 2020/21

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GRi content inDex

The Sustainability Report, entitled “Dependable. Action. Together.”, was submitted to the Global Reporting Initiative (GRI) for review by the GRI Materiality Disclosures Service. The GRI Services team confirmed that the “Materiality Disclosures” (102-40 to 102-49) have been correctly located in the report.

GRI Standard Page Omissions/Comments

GRI 101: Foundation 2016

GRI 102: General Disclosures 2016

ORGANISATIONAL PROFILE

GRI102­1Nameoftheorganisation 5

GRI102­2Activities,brands,products,andservices

AnnualReport,p.16/17

GRI102­3Locationofheadquarters 5

GRI102­4Locationofoperations AnnualReport,p.16/17

GRI102­5Ownershipandlegalform AnnualReport,p.12/13,16/17,41

GRI102­6Marketsserved 6

GRI102­7Scaleoftheorganisation 5/6,31,34

GRI102­8Informationonemployeesandotherworkers

5,22/23,34

GRI102­9Supplychain 13

GRI102­10Significantchangestotheorganisationanditssupplychain

29

GRI102­11Precautionaryprincipleorapproach 6/7

GRI102­12Externalinitiatives 7,9/10,13/14,17,28/29

GRI102­13Membershipofassociations 10

STRATEGY

GRI102­14Statementfromseniordecision­maker 3

GRI102­15Keyimpacts,risks,andopportunities 9 AnnualReport,p.28/29

GRI Standard Page Omissions/Comments

ETHICS AND INTEGRITY

GRI102­16Values,principles,standards,andnormsofbehaviour

6/7

GRI102­17Mechanismsforadviceandconcernsaboutethics

11/12

GOVERNANCE

GRI102­18Governancestructure AnnualReport,p.8–10

GRI102­19Delegatingauthority 8

GRI102­20Executive­levelresponsibilityforeconomic,environmental,andsocialtopics

8

GRI102­21Consultingstakeholdersoneconomic,environmental,andsocialtopics

10

GRI102­22Compositionofthehighestgovernancebodyanditscommittees

AnnualReport,p.8–11

GRI102­23Chairofthehighestgovernancebody AnnualReport,p.11

GRI102­25Conflictsofinterests AnnualReport,p.8–10

GRI102­26Roleofhighestgovernancebodyinsettingpurpose,values,andstrategy

AnnualReport,p.9/10

GRI102­27Collectiveknowledgeofhighestgovernancebody

AnnualReport,p.11

GRI102­29Identifiyingandmanagingeconomic,ecologicalandsocialimpacts

9

GRI102­30Effectivenessofriskmanagementprocesses

AnnualReport,p.28/29

GRI102­31Reviewofeconomic,ecologicalandsocialtopics

9

GRI102­32Highestgovernancebody’sroleinsustainabilityreporting

ThisreportwasreviewedandapprovedbytheExecutiveBoard.

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SuStainability RepoRt 2020/21

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GRI Standard Page Omissions/Comments

STAKEHOLDER ENGAGEMENT

GRI102­40Listofstakeholdergroups 10

GRI102­41Collectivebargainingagreements 34

GRI102­42Identifyingandselectingstakeholders 9/10

GRI102­43Approachtostakeholderengagement 9/10

GRI102­44Keytopicsandconcernsraised 9,30

REPORTING PRACTICE

GRI102­45Entitiesincludedintheconsolidatedfinancialstatements

AnnualReport,p.41/42

GRI102­46DefiningreportcontentandtopicBoundaries

9

GRI102­47Listofmaterialtopics 9,30

GRI102­48Restatementsofinformation 29

GRI102­49Changesinreporting 9,30

GRI102­50Reportingperiod 29

GRI102­51Dateofmostrecentreport 01/08/2019

GRI102­52Reportingcycle Yearly

GRI102­53Contactpointforquestionsregardingthereport

Imprint

GRI102­54ClaimsofreportinginaccordancewiththeGRIStandards

29

GRI102­55GRIContentIndex 35

GRI102­56Externalassurance Athird­partyauditwasnotperformedin2020/21.

KEY TOPICS

GRI 201: Economic Performance 2016

GRI103ManagementApproach2016(incl.103­1,103­2,103­3)

11

GRI201­1Directeconomicvaluegeneratedanddistributed

31

GRI Standard Page Omissions/Comments

GRI 203: Indirect economic impacts 2016

GRI103ManagementApproach2016(incl.103­1,103­2,103­3)

27

GRI203­2Significantindirecteconomicimpacts

27/28

GRI 204: Procurement practices 2016

GRI103ManagementApproach2016(incl.103­1,103­2,103­3)

13

GRI204­1Proportionofspendingonlocalsuppliers

InGeneralProcurement,productsandservicesareprimarilyprocuredfromsuppliersinthecountryinwhichthecompanyinquestionislocated.Theexactproportionofspendingonlocalsuppliershassofarnotbeenrecorded.

GRI 205: Anti-corruption 2016

GRI103ManagementApproach2016(incl.103­1,103­2,103­3)

11/12

GRI205­2Communicationandtrainingaboutanti­corruptionpoliciesandprocedures

12

GRI205­3Confirmedincidentsofcorruptionandactionstaken

Noincidentsbecameknowninthereportingyear.

GRI 206: Anti-competitive behaviour 2016

GRI103ManagementApproach2016(incl.103­1,103­2,103­3)

11/12

GRI206­1Legalactionsforanti­competitivebehaviour,anti­trust,andmonopolypractices

Inthereportingyear,therewerenolegalproceedingsduetoanti­competitivebehaviouroranti­trustandmonopolypractices.

GRI 301: Materials 2016

GRI103ManagementApproach2016(incl.103­1,103­2,103­3)

19

GRI301­1Materialsusedbyweightorvolume Weareunabletoreportontheweightandvolumeofinputmaterialsatpresentbecausethisdataisnotrecordedtothislevelofdetail.

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GRI Standard Page Omissions/Comments

GRI 302: Energy 2016

GRI103ManagementApproach2016(incl.103­1,103­2,103­3)

15

GRI302­1Energyconsumptionwithintheorganisation

16,31/32

GRI302­3Energyintensity 16,31/32

GRI 305: Emissions 2016

GRI103ManagementApproach2016(incl.103­1,103­2,103­3)

16–18

GRI305­1Direct(Scope1)GHGemissions 17/18,32/33

GRI305­2Energyindirect(Scope2)GHGemissions 17/18,32/33

GRI305­3Otherindirect(Scope3)GHGemissions 17/18,32/33

GRI305­4GHGemissionsintensity 18

GRI 306: Effluents and Waste 2020

GRI103ManagementApproach2016(incl.103­1,103­2,103­3)

20

306­1Wastegenerationandsignificantwaste­relatedimpacts

20/21,33

306­2Managementofsignificantwaste­relatedimpacts

20/21

306­3Wastegenerated 20/21,33

306­4Wastedivertedfromdisposal 21

306­5Wastedirectedtodisposal 21,34

GRI 307: Environmental Compliance 2016

GRI103ManagementApproach2016(incl.103­1,103­2,103­3)

11/12,15,20

GRI307­1Non­compliancewithenvironmentallawsandregulations

Noincidentsofnon­compliancewithenvironmentallawswerenotifiedthroughthegroup­widereportingsystem.

GRI Standard Page Omissions/Comments

GRI 401: Employment 2016

GRI103ManagementApproach2016(incl.103­1,103­2,103­3)

22

GRI401­1Newemployeehiresandemployeeturnover

22,34 PHOENIXcannotcurrentlyreportonfluctuationbecausethedataisnotavailable.Datacollectioninthereportingyearfocusedonkeyfiguresjudgedtobeofgreatersignificancefromamanagementperspective.

GRI401­3Parentalleave PHOENIXcannotcurrentlyreportonparentalleavebecausethedataisnotavailable.Datacollectioninthereportingyearfocusedonkeyfiguresjudgedtobeofgreatersignificancefromamanagementperspective.

GRI 403: Occupational Health and Safety 2018

GRI103ManagementApproach2016(incl.103­1,103­2,103­3)

25

GRI403­1Managementsystemforoccupationalhealthandsafety

25

GRI403­2Identificationofhazards,riskassessmentandinvestigationofincidents

25

GRI403­3Occupationalhealthservices 26

GRI403­4Employeeparticipation,consultationandcommunicationonoccupationalhealthandsafety

25/26

gri 403-5 Employeetrainingonoccupationalhealthandsafety

25

GRI403­6Promotionofemployeehealth 26

GRI403­7Preventingandminimisingeffectsdirectlyrelatedtobusinessrelationshipsonemployeehealthandsafety

25/26

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SuStainability RepoRt 2020/21

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GRI Standard Page Omissions/Comments

GRI403­8Employeescoveredbyamanagementsystemforoccupationalhealthandsafety

25

GRI 404: Training and Education 2016

GRI103ManagementApproach2016(incl.103­1,103­2,103­3)

23

GRI404­1Averagehoursoftrainingperyearperemployee

Trainingactivitiesaredefineddifferentlyinourcountries.Forthisreason,wedonotcurrentlyhaveanyreliabledataontheaverageannualnumberofhoursoftrainingandeducation.Datacollectioninthereportingyearfocusedonkeyfiguresjudgedtobeofgreatersignificancefromamanagementperspective.

GRI404­3Percentageofemployeesreceivingregularperformanceandcareerdevelopmentreviews

Atpresent,weareunabletoreportanypercentagefigures,becausethedataisinvalidduetoadjustmentstodatacollectioninthereportingyear.

GRI 405: Diversity and Equal Opportunity 2016

GRI103ManagementApproach2016(incl.103­1,103­2,103­3)

23

GRI405­1Diversityofgovernancebodiesandemployees

23

GRI 406: Non-discrimination 2016

GRI103ManagementApproach2016(incl.103­1,103­2,103­3)

11/12

GRI406­1Incidentsofdiscriminationandcorrectiveactionstaken

PHOENIXemployeescancontactthegroupComplianceManagerbytelephoneore­mailwherethereisreasonforsuspicion.Thecontactdetailsarecommunicatedinthecodeofconductandinthecomplianceprinciples.Casesofdiscriminationcanbereportedanonymouslyaroundtheclockviatheonlinewhistle­blowersystem.Nocaseswereidentifiedinthereportingyear.

GRI Standard Page Omissions/Comments

GRI 416: Customer Health and Safety 2016

GRI103ManagementApproach2016(incl.103­1,103­2,103­3)

14

GRI416­1Assessmentofthehealthandsafetyimpactsofproductandservicecategories

14

GRI416­2Incidentsofnon­complianceconcerningthehealthandsafetyimpactsofproductsandservices

Intheyearunderreview,noviolationsrelatingtotheeffectsofproductsandservicesonhealthwerereported.

GRI 417: Marketing and Labelling 2016

GRI103ManagementApproach2016(incl.103­1,103­2,103­3)

14

GRI417­1Requirementsforproductandserviceinformationandlabeling

14

GRI417­2Incidentsofnon­complianceconcerningproductandserviceinformationandlabelling

Noviolationsinconnectionwithproductandserviceinformationandlabelingwerereportedinthereportingyear.

GRI 418: Customer Privacy 2016

GRI103ManagementApproach2016(incl.103­1,103­2,103­3)

12/13

GRI418­1Substantiatedcomplaintsconcerningbreachesofcustomerprivacyandlossesofcustomerdata

13

GRI 419: Socioeconomic Compliance 2016

GRI103ManagementApproach2016(incl.103­1,103­2,103­3)

11/12

GRI419­1Non­compliancewithlawsandregulationsinthesocialandeconomicarea

Nocomplaintswerereceivedinthereportingyear.

39

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iMpRint publisher Dr.IngoFlorian HeadofCorporateQualityManagement&CSR StefanieSevimli CorporateCSRManager

PHOENIXPharmaSE CorporateQualityManagement&CSR Pfingstweidstraße10 –12 68199Mannheim Germany Phone+ 49(0)62185058503 Fax+ 49(0)62185058501 s.sevimli@phoenixgroup.eu www.phoenixgroup.eu/de

concept and editing in cooperation with akzentekommunikationundberatunggmbh,Munich,Germany www.akzente.de

photographs MatthiasHaslauer(SteveAnderson,HelmutFischer, MarcusFreitag,StefanHerfeld,Dr.RolandSchütz), MatthiasMüller(SvenSeidel)

©PHOENIXPharmaSE,Mannheim,Germany Allrightsreserved.

TranslationoftheGermanversion. TheGermanversionisbinding. Translation:TargetLanguagesGmbH, Dossenheim,Germany

ThedataforthisreporthasbeengatheredEurope­wide,consolidated,andpreparedbymeansofCSRmanagementsoftwareby