Responsible Business Highlights Report 2015 GSK Australia and

Responsible Business Highlights Report 2015

GSK Australia and New Zealand

At GSK, our mission is to help people do more, feel better and live longer.

We put our values - transparency, respect for people, integrity and patient/customer focus - at the heart of everything we do to operate ethically and responsibly. We work to make our products available and affordable to the people who need them, no matter where they live or what they can afford.

This report is designed to highlight key areas of our work across Australia and New Zealand. You can read more about our performance and deliverables in the Annual Report and the Global Responsible Business supplement which are available at www.gsk.com.

The year in highlights

Globally:

Locally:

Fighting malariaThis year GSK’s malaria candidate vaccine Mosquirix, the product of 30 years of research, received a positive scientific opinion from European regulators for use in the prevention of malaria in young children in sub-Saharan Africa. This is an important step towards making the vaccine available, alongside other tools, to protect children from malaria.

Humanitarian responseWe continued to support our partners and humanitarian organisations prepare for emergency situations. Since our global partnership with Save the Children began in 2013 we have reached over 1.3 million children with lifesaving immunisations, treatments and other interventions.

Investment in Boronia We continued to make significant investment in advanced manufacturing expansion plans at the Boronia site in Victoria including the launch of a new pilot vaccine manufacturing plant. The focus is the development of cost-efficient medicines and vaccines that benefit patients, and also help support the Australian manufacturing sector.

Ongoing support of patient advocacy groupsWe engage with and support various local patient organisations. Our involvement with them is part of our commitment to be a patient-focused company. During 2015, we provided $289,000 (AUD) and $20,000 (NZD) in independent grants and donations to groups in Australia and New Zealand respectively.

http://www.gsk.com

Contents Inside this report

Our approach

Health for all

Our people

Our behaviour

Our planet

A new phase of growth and development Global business overview

Local business overviewKey figures - Business by turnoverSpotlight: ViiV Healthcare

45

667

Humanitarian emergency response Diseases of the developing world Affordability in low and middle-income countries Clinical studies

Community investmentListening to employeesGender diversityInvesting in students

9999

10

121213

88

88

11111112

Changing our business modelEnsuring ethical interactions

Spotlight: Partnerships and collaborations

1415 16

Our approachOur global goalsDeforestation

Carbon trust Spotlight: Investment in Boronia

171718

1819

Award for Research ExcellenceIndigenous healthPatient advocacy groups Medicines registered and reimbursedSpotlight: Milestone – fighting malaria

Fundraising and partnership – Save the ChildrenVolunteeringSpotlight: Staff profile

Responsible Business Highlights Report 2015 | GSK Australia and New Zealand4

Whilst 2015 has been a year of substantial change for GSK, responsible and ethical operations have remained fundamental to our strategy at global and local levels.

Our business was significantly reshaped by the three-part transaction with Novartis, which was completed in 2015. In this venture, we acquired Novartis’ global Vaccines business (excluding influenza vaccines), and created a new world-leading Consumer Healthcare joint venture while divesting our Oncology business to Novartis.

As the most significant transaction for GSK since its creation in 2000, the Novartis transaction enabled us to build a stronger set of businesses across Pharmaceuticals, Consumer Healthcare and Vaccines, as well as position GSK as the leading healthcare company of the region.

In 2015, GSK Australia also sold its Opiates business to Sun Pharma.

Our pharmaceutical business has worked effectively to remain ahead of the industry and develop new products that offer significant improvements over existing treatments.

This year we secured the national tender for influenza vaccinations and consolidated the launch of our latest respiratory assets.

We have improved transparency of our relationships with healthcare professionals (HCPs). We remain open to supporting HCPs to attend scientific conferences, but only through funding to third parties so that GSK is not directly involved in decisions relating to the selection of HCPs.

We have stopped direct payments to HCPs for speaking on our behalf about our medicines and vaccines, and we are also reporting payments for their expertise on clinical research, advisory boards and market research.

The benefits of the joint venture with Novartis are already starting to emerge, with the new GSK Consumer Healthcare business intent on becoming a leading and fast growing consumer health care business in the region.

We believe our core differentiator continues to be our ability to understand consumer needs and leverage science to deliver innovative information and products they can trust.

We have built on our expertise in science and are now a leading Fast Moving Consumer Healthcare company in pain management as well as oral care and nicotine replacement therapy.

We remain committed to delivering high-quality everyday healthcare products and now have a wider brand offer for our customers and a portfolio of loved and trusted brands including Panadol, Voltaren, Sensodyne, Polident and Otrivin.

In 2015 we incorporated additional digital technologies in our business strategy. During the year we launched a new contact management platform and relaunched our corporate website, and will continue to invest in digital research, digital media, user needs and dynamic content for our customers and consumers.

We faced some external challenges in relation to increased government measures on the pricing of medicines, and reviewed our strategies and brands to ensure we continue to meet consumers’ needs.

Overall, GSK is investing in creating a stronger and more consolidated company that delivers sustainable performance through innovation and expanding access.

Our talented people, who are extremely capable and resilient, will continue to be integral to this agenda and in driving our achievements. As part of this, we continue to empower our people to make more decisions for the business.

Looking towards 2016, there is no doubt there are challenges and hard work ahead. But with focus and commitment, we will be successful in building on the strong foundations of a company that delivers benefits to our customers, employees, investors, partners and the industry as a whole.

Geoff McDonald and Elizabeth Reynolds

Our approachA new phase of growth and developmentAs we enter a new phase of growth in science and medicine, the core values of GSK - transparency, respect for people, integrity and patient focus - continue to be at the heart of what we do.

Geoff McDonaldGeneral Manager, GSK Pharmaceuticals Australia

Elizabeth Reynolds General Manager, GSK Consumer Healthcare ANZ

Ref: i Nielsen Scan data [Dec-2015]


GSK is a science-led global healthcare company that researches and develops innovative Pharmaceuticals, Vaccines and Consumer Healthcare products. In 2015, these businesses generated a turnover of £23.9 billion globally.

Our global strategy is focused on key strategic priorities which aim to increase growth, reduce risk and improve our long-term financial performance. These

priorities are:

• Grow a diversified global business;

• Deliver more products of value;

• Simplify the operating model; and

• Be a responsible business.

We have a significant global presence with more than 100,000 employees in more than 150 markets, including a network

of 72 manufacturing sites in 34 countries.

We demonstrate strong R&D innovation and have profiled around 40 new potential medicines and vaccines in 2015. Of these, we believe 80 per cent are potentially first-in-class.

We partner with over 1,500 other companies and academic organisations around the world, which enables us to increase our

understanding of new areas of science and to share the risk of development.

Each year we continue to uphold responsible business operations which are central to how we deliver success. Our work is underpinned by our values of patient and customer focus, integrity, respect for people and transparency.

Pharmaceuticals Research and Development (R&D)

Vaccines Consumer Healthcare

£14.2bn £3.7bn £6.0bn £3.1bn

60% 15% 25%2015 turnover 2015 turnover 2015 turnover 2015 turnover

of Group turnover of Group turnover of Group turnover

Our Pharmaceuticals business develops and makes medicines to treat a broad range of acute and chronic diseases. We have leading global positions in respiratory disease and HIV with a portfolio of innovative and established medicines.

Our Vaccines business is one of the largest in the world, developing, producing and distributing over 1.9 million vaccines every day. We have a broad portfolio of 39 paediatric, adolescent, adult and travel vaccines.

Our Consumer Healthcare business develops and markets products in wellness, oral health, nutrition and skin health. We have a portfolio of some of the world’s most trusted and bestselling brands which include Sensodyne, Voltaren, Horlicks and Panadol.

Research and development underpins all of our business with research focused in six core therapy areas: vaccines, respiratory diseases, rare diseases, immuno-inflammation, HIV/infectious diseases and oncology.

Global business overview


The GSK footprint in Australia and New Zealand encompasses over 1,300 employees, all focused on innovative products.

In Australia, our Pharmaceuticals business operates across two sites: Abbotsford and Boronia in Victoria. Following significant investments over the last four years, our Boronia site is GSK’s largest manufacturing operation in the Southern Hemisphere. In 2015 we opened a new pilot vaccine facility which could reduce vaccination costs and help immunise more children in developing countries.

Our Consumer Healthcare business is based in Ermington, New South Wales and it’s where we manufacture one of the most well-known pain relievers in the world: Panadol.

At our GSK New Zealand site, there are two local sales and marketing divisions – Pharmaceuticals and Consumer Healthcare, both situated in Auckland.

Two key transactions were responsible for shaping our business in 2015:

Novartis transactionThe three-part transaction with Novartis announced in 2014 took shape last year across the Pharmaceuticals and Consumer Healthcare businesses, leading to a year of significant change for GSK.

Realising the growth and synergy opportunities of this change, 2015 was focused on implementing our integration plans to consolidate our businesses, build a more capable ‘people and performance’ culture and enter a new phase of embracing digital technologies.

Opiates businessIn September 2015, we completed the transfer of the GSK Australian Opiates business to Sun Pharmaceuticals. While the Opiates business has been a valuable division of our Australian operations for many years, completing this transaction has enabled us to focus on the development of our innovative medicine and vaccine portfolio and the delivery of our Australian growth strategy.

Key figures - business by turnover

Australia

New Zealand

Pharmaceuticals includingmanufacturing

$921million

Pharmaceutical andmedicinal exports

$461.58million

Consumer Healthcare including manufacturing

$299 million*

Opiates

$68 million**

Research and development

$40.62million**

1,240

Pharmaceuticals

$65 million

Consumer Healthcare

$26 millionResearch and Development

$2.18 million

* The Consumer Healthcare business was established in Sep 2015 once medicine licences were transferred to the new entity.** Transferred to Sun Pharmaceuti-cals in August, 2015

Employee numbers in Australia

74Employee numbers in New Zealand

Local business overview


ViiV Healthcare (ViiV) is an independent pharmaceutical company focused on delivering advances in treatment for people living with HIV. Established in 2009 through a collaboration between Pfizer and GSK (and joined by Shionogi in 2012), ViiV’s sole focus on HIV allows the company to make meaningful contributions to people living with or affected by HIV, now and into the future. GSK owns 78.3 per cent of ViiV.

Through an innovative, responsible and sustainable approach to the availability of

medicines, ViiV is dedicated to:

• Improving diagnosis, treatment, care and education for all people living with HIV

• Collaborating with HIV stakeholders to help strengthen education, support services and local healthcare capacity and capabilities

• Actively supporting local Australian community initiatives in raising awareness of HIV prevention and treatment, as well as reducing stigma and discrimination towards people living with HIV

While many will remember the height of the HIV crisis in the 1980s, the sad reality is that HIV has not gone away. In fact, HIV still remains a very real challenge in Australia, with over 1,000 new diagnoses a year and an estimated 12 per cent of people living with HIV still unaware of their status.

Grassroots supportViiV supports Australian HIV organisations through funding provided by ViiV’s Positive Action Community Grants – Australia (PACG – Australia) to support and boost

the innovative grassroots action of non-government organisations.

Positive Action, developed in 1992 by GSK, was the first pharmaceutical company program of its kind to support communities affected by HIV and AIDS.

Recently, the PACG were awarded to seven different Australian HIV organisations who received a share in $143,200 worth of funding, as they were shown to deliver support and interventions to communities most vulnerable to HIV and engage people living with HIV.

Advances in treatmentViiV launched Triumeq®, its most recent product for the treatment of HIV on April 1 2015 when it was listed on the Pharmaceutical Benefits Scheme (PBS) in Australia. Triumeq is a single pill combination tablet containing three antiretroviral medicines–dolutegravir, abacavir and lamivudine–taken once a day. Triumeq was the first single-pill regimen to contain dolutegravir.

Spotlight: ViiV Healthcare

ViiV Healthcare Australia

Turnover

$58million

78.3%Research and development investment

of ViiV$3.3 million

GSK owns



Health for all

Pam appeal to ensure children and families received support in the aftermath of this devastating event. We also provided seed funding to help Save the Children Australia establish an Emergency Health Unit in the Pacific – a team of specialist health workers who deliver basic healthcare within 72 hours after disaster strikes (such as cyclones or earthquakes), as well as essential healthcare during a slow acting disaster such as malnutrition caused by drought.

Diseases of the developing world Our open innovation model continues to advance research in diseases of the developing world (DDWs) such as malaria, tuberculosis (TB) and neglected tropical diseases (NTDs). At our dedicated research centre in Tres Cantos, Spain, we work exclusively on developing new and innovative medicines for diseases of the developing world, supported by and collaborating with other organisations including the Wellcome Trust and the Bill and Melinda Gates Foundation.

In 2015, our Tres Cantos researchers screened our library of over two million compounds for signs of activity against kinetoplastids – a group of parasitic diseases estimated to infect approximately 20 million people in the developing world – and have shared the 600 ‘hits’ identified with researchers, to encourage further research in this field both within and outside GSK.

Affordability in low and middle-income countries Six billion people live in emerging markets and 300 million of them will begin using healthcare for the first time in the next five years. Our flexible pricing strategy seeks to meet their healthcare needs by providing more products at lower prices.

GSK pioneered the tiered pricing model to improve access to our vaccines and enable low-income countries to roll out national immunisation programmes. We offer our lowest prices on vaccines for organisations such as Gavi and the Vaccine Alliance, which supports countries with a Gross National Income (GNI) per head of less than $1,570.

In 2015, we committed to freezing our prices for developing countries that graduate from organisations such as Gavi so they can continue to purchase our vaccines at significantly discounted prices for a decade after graduation. We also supplied 62 million low-cost doses of the vaccination Synflorix to Gavi and over 100,000 doses to Médecins sans Frontières to immunise children caught up in crises.

Clinical studiesOur clinical research team worked on 52 clinical studies during 2015.

These studies are an essential part of our efforts to develop new medicines and vaccines and improve our understanding of both patient need as well as the benefits and risks of our products.

The number of clinical studies coordinated by our local team has reduced over the years due to changes in the global R&D landscape, however studies remain an integral part of our local operations and an essential part of how we will continue to develop medicines in the future.

Our medicines, vaccines and consumer health products are improving quality of life for patients and consumers around the world, however many people are still not getting the treatments they need. Challenges include affordability, the fact that there are still many diseases without treatments, and under-resourced health systems.

In the United Nations’ new Global Goals for Sustainable Development (SDGs), health is explicitly included in goal number three, “ensure healthy lives and promote well being for all ages.” We will support this by tackling some of the key local and global health challenges, extending the benefits of our products to more people regardless of where they live or their ability to pay.

Humanitarian emergency response GSK works with partners and humanitarian organisations around the globe to prepare for and respond to emergency situations. In some instances, we fast-track the development of life-saving vaccines and in others, we contribute by donating cash, products and our employees’ time. We also invest in long-term rebuilding and reconstruction in the aftermath of a disaster.

In 2015, GSK continued to work with Save the Children globally and locally. This included providing funding to the Cyclone


ARE winners (Left) James McCluskey from the University of Melbourne and (right) Jamie Rossjohn from Monash University

24 page comic book “Baby Savers” revolves around local animal characters - Daisy the Frog, Jeffrey the Goanna, George the Gecko and Terence the Ant – who undergo basic training to become ‘Baby Savers’.

Award for Research ExcellenceThe GSK Award for Research Excellence is one of the most prestigious awards available to the Australian medical research community. Now in its 35th year, this reputed accolade recognises outstanding achievements in medical research and facilitates career development in health and research in Australia.

In 2015, the award was granted to a collaborative partnership between The University of Melbourne and Monash University for its ground-breaking work investigating how the immune system recognises pathogens (harmful germs) such as salmonella and tuberculosis.

The $80,000 grant that accompanies the award will support continued research aimed at better understanding the body’s first line of defence, the immune system, which will ultimately lead to better vaccines and assist in the treatment of inflammatory bowel disease, peptic ulcers and tuberculosis.

Indigenous healthWe remain committed to supporting healthcare among the Aboriginal and Torres Strait Islander community.

In 2015 we launched a new immunisation resource in the form of a picture book specifically aimed at young Aboriginal and Torres Strait Islander families, encouraging them to be proactive when it comes to immunising themselves and their children against preventable diseases.

The 24-page comic book and accompanying poster was developed over two half-day community workshops involving parents, caregivers, grandparents and healthcare professionals in Yirrkala, a remote Aboriginal Community in Arnhem Land, Northern Territory.

Patient advocacy groups We work closely with a wide range of patient organisations in a variety of different disease areas such as cancer, asthma and rare diseases.

Each year we provide funding to a variety of patient advocacy groups to help with defined events, projects or activities. We

acknowledge that patient groups must remain independent and for this reason we limit our financial support to no more than 25 per cent of a group’s total annual revenue and publicly disclose who we have supported each year.

During 2015, we provided $AUD298,000 in either financial support or donations to patient groups across Australia and $NZD20,000 in New Zealand.

Groups that we have provided independent grants to include Asthma Australia, Polio Australia, Rare Cancers Australia, Australian Cervical Cancer Foundation, Lung Foundation Australia, Auckland Asthma Society and Body Positive New Zealand.

Medicines registered and reimbursedThree new medicines for HIV and respiratory and one new vaccine were registered by the Therapeutic Goods Administration in Australia. Five products were also listed on the Pharmaceutical Benefits Scheme.

In New Zealand, we had three new medicines registered by Medsafe in HIV, respiratory and oncology.

After 30 years of research, we are now closer than ever to making available the world’s first vaccine against malaria.

Together with our partners, we have been working to develop a vaccine to protect young children from this deadly parasite and in 2015 we reached a significant milestone. The European Medicines Agency adopted a positive scientific opinion for our malaria candidate vaccine Mosquirix, or RTS,S, in children aged six weeks to 17 months in Sub-Saharan Africa. The vaccine won’t be available in Australia or New Zealand.

WHO has recommended that RTS,S should be introduced through a pilot roll-out. WHO is now actively working with financing bodies, and the malaria vaccine clinical trials partnership (including PATH and GSK) to generate support for the pilots, and to finalise the design of the pilot implementation

programme. GSK developed RTS,S in partnership with the PATH Malaria Vaccine Initiative with funding from the Bill and Melinda Gates Foundation.

GSK has committed to supply RTS,S at a not-for-profit price. The price will cover the cost of manufacturing the vaccine together with a small return of around five per cent that will be reinvested in research and development.

Partnerships to fight malariaIn 2015 we continued our partnerships with AMREF Health Africa and Save the Children to train health professionals and community health workers in Tanzania and Kenya respectively. We also continued our work with FHI 360 and The Carter Centre to combine interventions to control malaria and neglected tropical diseases in Ghana and Nigeria, and

with the Faiths Act in Sierra Leone to train 47 faith leaders to become malaria ambassadors.

In December 2015 we launched a new partnership with Comic Relief, a UK charity, to fight malaria and strengthen health systems. This £22 million partnership, funded by a £17 million donation from GSK and £5 million from Comic Relief, will make grants to frontline organisations in five malaria endemic countries.


Online access:Read more about Health for All from our Global Responsible Business Supplement athttp://gsk.com/en-gb/responsibility/

Spotlight: Milestone - Fighting malaria

http://gsk.com/en-gb/responsibility/


Our peopleWe invest in our people to ensure the long-term sustainability of our business. In order to help us tackle the biggest global health challenges, we need a talented, motivated and resilient workforce.

Our aim is to create a working environment where employees feel valued, respected, empowered and inspired. Listening to and supporting our employees has been particularly important during a year of significant change in the business.

We take a progressive approach to developing leaders, and help our employees learn new skills and gain new experiences to support their personal ambitions and drive the business forward.

Combining development opportunities with volunteering, for example through our PULSE programme, benefits our people, our business and our non-profit partners.

Community investmentWe continue to make donations to local charities in recognition of the communities in which we operate.

In 2015 our global community investment totalled £208.3 million, an increase from £201.5 million the previous year. These global contributions comprised £56.6 million cash, £136.9 million of product and in kind donations to support humanitarian aid and £3.7 million in volunteering time and expertise. Management of these global contributions accounted for the remaining £11.1 million.

In Australia, we provided more than $625,000 in donations to organisations including the National Youth Science Forum, Foodbank and Save the Children Australia. $150,000 of this came from our Opiates business who generously donated to community charities in regional Victoria and Tasmania following the transfer of GSK’s Opiates business to Sun Pharmaceuticals.

In New Zealand, we provided more than $NZD65,000 to local community organisations including KidsCan New Zealand, YouthLine and Body Positive New Zealand.

Listening to employeesIn 2015 more employees than ever before shared their views in our global employee survey with a 78 per cent response rate, up from 72 per cent in 2012, providing the company with valuable feedback.

Results from the survey told us that our employees are clear on their accountabilities and feel empowered to perform their roles in the right way.

The research also showed that GSK ranks higher than the external benchmark in two important areas: managers’ support of work/life balance within their teams and in communication.

Whilst engagement levels have fallen, which was expected given the amount of significant change at GSK in the last 12 months, they continue to remain positive.

Gender diversityWe aim to improve the gender balance by encouraging more women to join our business and develop as leaders.

Through our global Accelerating Difference programme, we assist the career progression of our female employees through coaching and group dialogue sessions. Our Women’s Leadership Initiative, one of our Employee Resource Groups, supports a culture of inclusion and aims to empower women to achieve their potential. It now has 2,721 members globally, with new groups launching in Africa, Europe and Singapore during 2015.

In 2015 women represented

52% of recruits42% Management17% Corporate Executive Team

to our Future Leaders programme 29% Our Board

In 2015 women made up

47% of GSK businessesGrade 7 and up inAustralia

Consumer Healthcare

Pharmaceutical

ConsumerManufacturing

PharmaceuticalManufacturing

“I would encourage anyone with an interest in science to consider the pharmaceutical industry as an avenue for finding a fulfilling role for a curious mind. I’ve been working in the medical directorate at GSK for almost 18 months, and I still read respiratory journals with a constant hunger for more information. I still feel that I am part of the research world, but now I am part of a team at the global industry leader in respiratory medicine. It is a wonderful feeling to be part of a company which provides medicines that can help to change people’s lives; GSK is a science-led company which constantly strives to better the management of disease, and it is a privilege to be part of this matrix.”

Nessa Banville, Medical Science Liaison, Pharmaceuticals


Fundraising and partnership – Save the ChildrenThrough our vaccines, medicines and pioneering partnership with Save the Children, we are contributing to the urgent effort to reduce child mortality globally.

Approximately 16,000 children under five die every day, many from preventable causes. Due to social and economic inequalities, under-five mortality in low-income countries is 11 times higher than in high-income countries.

To help save children’s lives in the world’s poorest countries, our partnership with Save the Children is an important contribution to the UN Global Goals for Sustainable Development to end preventable deaths of newborns and children under five years of age by 2030.

Our efforts include developing child-friendly medicines, widening immunisation coverage, accelerating access to treatments and strengthening healthcare systems.

We are combining our capabilities in R&D, supply chain, procurement and vaccines with expertise to save children’s lives – and together we are delivering tangible results. To date, we have reached over 1.3 million children. Over 23,500 under-fives have been fully immunised, over 125,000 children have been treated for diarrhoea, malaria or pneumonia and over one million children have been screened for malnutrition.

Key components of the partnership are the engagement and contributions globally from our staff. Since the partnership began in 2013, GSK employees have raised over £1.65 million, which has been increased to £3.3 million through matched funding from GSK. In 2015 GSK’s Australian and New Zealand staff contributed more than $56,000

in 2015, a significant increase on 2014.

Money raised through fundraising is used to support the health programmes in Kenya and the Democratic Republic of Congo, as well as Save the Children’s humanitarian relief efforts and local programmes in Australia, New Zealand and other countries around the world.

Investing in students As a research-led healthcare company, GSK is playing a leading role in inspiring young people to get into science, technology, engineering and maths, as well as providing a range of career opportunities.

We recognise the need to invest in the future leaders of tomorrow and we’re committed to providing opportunities for emerging talent. In Australia, we supported 40 Industry Based Learning (IBL) students in 2015 working across all areas of the business including marketing, finance, HR and procurement.

Due to the success of the IBL program in Australia, it was also introduced in New Zealand where two students were placed in 2015.

Funding emergency healthIn November 2015 we made a corporate donation of $250,000 to Save the Children Australia to fund an Emergency Health Unit in the Asia Pacific region. The initiative also received co-funding from the Australian Government and has been upheld as an example of best practice for tri-sector partnerships between private, non-government and government sectors.

Designed to respond to slow onset disasters, in addition to being prepared to respond immediately to any rapid onset emergency, the Emergency Health Unit perfectly complements Save the Children’s existing health expertise, based throughout the Pacific and South East Asia regions.

The Emergency Health Unit is designed to use Save the Children’s existing resources to provide on-the-ground support within hours of an emergency striking, as well as assist local units to implement long-term development projects after three months. This will allow essential emergency healthcare, nutrition, water, sanitation and hygiene work to be delivered faster and to a higher quality.

Using Orange Days to bring science to the classroomWe recognise the future of our business ultimately lies in the hands of today’s students and we want them to be as energised as we are. In 2015 we introduced a new way of supporting local educational facilities as an integral part of our community investment.

Under our corporate volunteering programme ‘Orange Day’, staff at our Pharmaceutical manufacturing site in Boronia facilitated three science lessons in local schools. During these sessions, GSK transformed classrooms into a ‘science laboratory’ and showed students how medicines are tested using science such as chromatography, the science of separation.

We hope that by bringing science to the classroom, more students will consider science as a future career.

VolunteeringVolunteering is an important way we invest in our people as well as communities around the world. We do this through skilled and non-skilled volunteering.

In 2015 staff across Australia and New Zealand contributed 1,329 hours in community volunteering through our corporate volunteer program, Orange Day. This is up from 1,080 volunteering hours in 2014 after concerted efforts were made to ensure staff awareness of this invaluable opportunity.

We work to continue celebrating and raising awareness of our participation in the community, and we aim for higher contributions in 2016.

Employees wanting to contribute their professional skills to non-profit partners in greater depth can do so through our PULSE Volunteer Partnership.

Working with our partners full-time over three or six months, either at home or abroad, our people are challenged to think differently, develop their leadership skills and bring new experiences and fresh ideas back to GSK.

In the six years since we launched PULSE, 560 employees have contributed over £19 million worth of skilled services to 103 non-profit partners in 62 countries. These PULSE volunteers have come from 57 countries, with more than half of the 2015 volunteers from outside the UK and the USA, where the programme first started. In 2015 GSK Australia sent its fifth PULSE volunteer. Read more about her experience on page 13.


Through GSK’s PULSE Volunteer Partnership, our employees can use their professional skills to help create sustainable change for our non-profit partners and the communities they serve.

In July 2015 Alicia Cook, a communications manager at GSK Australia, went on assignment in Kenya to work with AMREF Flying Doctors to develop and implement a fundraising strategy.

These fundraising activities would allow for the continuation, expansion and sustainability of AMREF Flying Doctors’ outreach activities to reduce morbidity and mortality in certain areas of Africa.

In an excerpt from one of her blogs, Alicia describes her extraordinary experience and the significant work performed by our community partners in Kenya:

One of the things that struck me most when I started working at GSK four and half years ago was the insane amount of brainpower that surrounded me. Big brains with bright ideas were everywhere. My contribution as a communications specialist playing with

words paled in comparison to what these brains did. Chemists, scientists, doctors, engineers, health economists, regulatory boffins – there was a whole ecosystem of intellect churning within the company. I felt constantly awe-struck by the newness and magnitude of it all.

Reminiscent of the overeager grasshopper from Karate Kid, I asked a lot and learned a lot in those early days. But, as with everything, the ‘wowness’ faded over time. The significance of the work being done never diminished, things just became… normal.

Now, nearly three weeks into my PULSE assignment with AMREF Flying Doctors, the moments for ‘wowness’ are back....

AMREF Flying Doctors operates in a wonderfully contradictory way – uncomplicated service delivery in a very complicated environment. Conversations here are not about refining process and procedure. They’re about navigating inadequate runways and poor infrastructure, security clearances for inter-regional transfers

and conflict zones, visas and passport checks and, of course, let’s not forget the ever-narrowing funding streams and increasing competition for money to keep things going.

I can’t pretend I am not still slightly girly about working with the big brains of pilots and medics (a leopard can’t change her spots), but if I am to take anything from the subliminal messages given by Rees’ father and my first few weeks working here, it’s that the size of your brain is irrelevant. It’s what you do with it that really counts!

For more information about GSK’s PULSE program and to read other volunteer blogs, visit: gskpulsevolunteers.com


Spotlight: Pulse assignment

Online access:Read more about Our People from our Global Responsible Business Supplement athttp://gsk.com/en-gb/responsibility/



Our behaviour

Changing our business model Creating a sales force that puts patient needs first In January 2015 we completed the roll-out of changes to the way our sales teams are compensated globally. Our pharmaceutical medical representatives around the world no longer have individual sales targets. Instead, their incentives are based on their technical knowledge, the quality of service they deliver to healthcare professionals to support improved patient care, and a broader set of business performance measures. Our sales team are listening to customers’ needs and using the right GSK resources to help support the delivery of improved patient care.

Changing the way we engage with healthcare professionalsWe remain committed to an ongoing dialogue with the scientific community and supporting medical education, but we are making changes to transform and modernise the way we engage with doctors.

We are guided by our values – integrity, focus on patients and respect for people – in everything we do – from developing, testing and manufacturing new medicines to engaging with governments on appropriate policies.

Using rigorous standards and controls, we prioritise patient safety and transparency while acting with integrity in all of our research and clinical trials. GSK continuously monitors and reports on any potential adverse effects from our medicines and vaccines, when prescribed by physicians and used by patients.

We expect all our employees and suppliers to live by our values. Mandatory annual training ensures our employees across the globe are familiar with GSK’s Code of Conduct and we measure performance not just by what people deliver, but how they deliver in line with our values.

We have significantly changed our commercial model to lead the industry in the way we sell and market our medicines to ensure patients’ needs always come first.

As of January 2016 we no longer pay doctors to speak to other prescribers about our prescription medicines and vaccines. We will continue to pay doctors for providing services however, and for participating in our clinical research. These payments are governed by rigorous controls and are based on fair market value.

GSK is also changing the way it supports medical education by no longer playing a role in choosing which doctors are sponsored to attend scientific congresses. Instead, the company will provide funding to independent professional bodies, which then allocate funding to individuals on our behalf. This is another industry first, with GSK leading the way towards more transparency in pharmaceuticals. We will also support independent medical education providers - these programmes are independent and we do not influence the programme content.

To provide information about our medicines and vaccines in the way doctors want it, we are making significant investments in digital platforms and capabilities, as well as in our in-house medical capabilities.

Payment disclosureGSK has an important role to play in supporting education for doctors and in providing accurate information about its medicines to help doctors make the best treatment decision for their patients, such as sharing new clinical data, details of label changes or safety updates.

In 2015, GSK Australia made payments totalling $3.6 million to healthcare professionals and health-related organisations (HCOs) for grants, sponsorships and consultancy fees related to chairing and speaking at meetings, assistance with training and participation in advisory boards.

In comparison to last year, the support has increased slightly. GSK launched a number of new medicines at the end of 2014 and invested in training in 2015 to ensure healthcare professionals have accurate information about the new medicines and the patients who could benefit.

http://www.gsk.com/media/325203/code-of-conduct-policy-english.pdf


Andrew Weekes, Medical Director, GSK Australia Pharmaceuticals“Data transparency of research or commercial practices is not an easy principle to put into practice, but we are seeing positive results. GSK was also the first pharmaceutical company in Australia to publish aggregated payments to healthcare professionals, and in 2016 we will stop payments to healthcare professionals for them to talk about our prescription medicines on our behalf.

Opening access to our data has not been quick or easy – we’ve been on this for more than a decade and there is still more work to be done.”

Ensuring ethical interactionsWe are committed to engaging ethically and transparently with political and other key stakeholders.

Political advocacy We do not make contributions to political parties in Australia or New Zealand.

In 2015, GSK was ranked in the top three most transparent FTSE 100 companies by Transparency International in its Corporate Political Engagement Index. The Index assesses how open companies are about their political engagement and the quality of their reporting on how their political activities are governed, managed and implemented.

Engaging with patient advocacy groups We engage with, and support, patient organisations to gain insights that enable us to develop products and advocate for policies that better meet patient needs. Our new Global Standard for Interactions with Patient Organisations outlines how we work with patient groups, collaborate on projects and gather insights ethically and transparently. Funding from GSK cannot exceed 25 per cent of a patient group’s annual revenue and, to respect their independence, we do not seek endorsement or promotion of our medicines. We publish all information (financial and non-financial) about the support we provide to patient organisations on our website. For more information about how we have supported patient advocacy groups in 2015 see the Health for All section.

Adhering to internal and industry standardsGSK has a robust global Code of Conduct as well as other strict internal compliance mechanisms which we expect all our employees to adhere to. We also abide by a Code of Practice for Promotion and Customer Interactions. This code ensures our scientific engagement and the marketing of our products are driven by our company values.

As well as meeting our own high standards, we deliver our work in compliance with the operational standard set by Medicines Australia, the Australian Self Medication Industry and the New Zealand Self Medication Industry.

In 2015 we had no breaches of these industry standards for either Australia or New Zealand.

We advertise our prescription medicines directly to consumers in New Zealand. Aside from the United States of America, direct to consumer advertising is not permitted anywhere else in the world including Australia.


We value working in partnerships and collaborating - leveraging the expertise of others in their respective fields to achieve our mission. GSK has been a significant supporter of The George Institute for Global Health for a number of years and we’ve recently contributed $161,000 to support a research fellow in respiratory medicine.

The fellowship aims to provide the research fellow with an opportunity to further develop their skills and expertise in implementation, conception and design of multicentre respiratory clinical, epidemiological or public health studies in the Asia Pacific Region.

The fellowship will also enable further fostering of excellence in respiratory research focused on achieving affordable and accessible health care for people in low and middle income countries, especially in this region.

Executive Director of The George Institute Australia, Professor Vlado Perkovic commented on what this means for the future of translational medicine:

“It is vital that we invest in the talented individuals who will shape the future of Australian healthcare. The GSK Respiratory Fellowship will ensure that we can support an exceptional researcher to focus on one of Australia’s most urgent health needs. We thank GSK for helping us to support Australia’s brightest young minds.”

Professor Christine Jenkins, Head of Respiratory Trials at The George Institute, discussed how the fellowship will allow the candidate to develop their career in respiratory medicine:

“The GSK Respiratory Fellowship provides a research fellow with an excellent opportunity to train further and gain greater skills in measuring and understanding effective interventions to improve lung health, especially in the Asia Pacific region. At the same time the successful candidate will access the wonderful training opportunity that an organisation like The George Institute provides.”


Online access:Read more about Our Behaviour from our Global Responsible Business Supplement athttp://gsk.com/en-gb/responsibility/

Spotlight: Partnerships and collaborations



Our planetOur approachMajor global environmental challenges like climate change and deforestation are exacerbating health issues and undermining efforts to overcome inequalities in the world. The consequences for current and future generations are likely to be severe and the poorest are particularly vulnerable.

As a global healthcare company, GSK positively contributes to tackling both the effects of environmental change – as part of our work to deliver health for all – and the causes. We are targeting a carbon neutral value chain by 2050 with ambitious goals to reduce carbon, water and waste in the meantime.

Our global goalsIn the last five years we have made significant progress towards our environmental goals and a cleaner future.

reduction in overall carbon footprint10%reduction(direct operations)20%

reduction in hazardousand non-hazardous waste 25%

reduction in operationalwaste to landfill 25%

of paper packaging fromresponsible sources 50%

reduction in valuechain footprint25%reduction in impact(value-chain)20%

reduction in hazardousand non-hazardous waste 50%

operationalwaste to landfill Zero

of paper packaging fromresponsible sources 90%

Carbonneutral

Supply chainusing watersustainably

Zero waste

Reduce our carbon footprint

Reduce our water impact

Reduce and recycle waste

2015

2020

2050



Waterconsumption (kL)

Boronia, Victoria

Ermington, Sydney

+3.2% -1.4%

CO2emissions (kg)

Boronia, Victoria

Ermington, Sydney

-2.9% +2.2%

Total wastegenerated (t.)

Boronia, Victoria

Ermington, Sydney

-8.0% -4.5%

Local environmental sustainabilitycomparisons - 2014-2015:

Deforestation Deforestation is a major contributor to climate change. We are taking steps to ensure that raw materials such as wood-based packaging materials and palm oil are sourced responsibly.

Globally, we have been working with the Rainforest Alliance to map risk in our packaging supply chain. We used this analysis to support our new sourcing standard for packaging, and we regularly assess suppliers to ensure they meet GSK standards1. In 2015, 71 per cent of paper packaging materials used in our operations were sourced responsibly, an increase of 6 per cent from 2012.

Carbon Trust We are working closely with the Carbon Trust to quantify the carbon footprints of our 40 biggest-selling brands globally at the various stages of the value chain. Patient use of our metered dose inhalers is the most intensive activity across our whole portfolio, due to the aerosol propellant used to administer the medication being a powerful greenhouse gas. We are continuing to explore ways to reduce these impacts while extending access to essential medication.

We are still the only pharmaceutical company to hold the Carbon Trust’s Carbon Standard for cutting carbon emissions, and its Water Standard for reducing water use across our operations globally.


Spotlight: Investment in BoroniaReducing our carbon footprint while addressing health access in neighbouring, less developed countries

Last year we opened a new pilot vaccine facility at Boronia in Victoria, Australia, to manufacture and test an innovative new production method developed by an Australian-led team. It is hoped this new method will help to reduce overall vaccination costs, which could in turn help more children in developing countries access potentially lifesaving vaccines.

If successful, it will be the first commercial production of a vaccine delivered using ‘blow-fill-seal’ technology. At significant volumes, blow-fill-seal (BFS) technology is an efficient,

cost-effective way to manufacture high quality, sterile products. In a single process, BFS technology forms the container, fills it with the sterile liquid then seals the container to maintain a high assurance of sterility. No other technology does this with such a small production footprint and without the need for a supply chain of aseptic components.

Putting a life-saving vaccine in BFS containers has the potential to deliver a sterile product in a more compact, robust container and it has a much smaller carbon footprint compared to the current methodology.

During the past four years, GSK has invested more than $100 million in its manufacturing plant in Boronia. It is GSK’s

largest site in the Southern Hemisphere and predominantly manufactures respiratory products using BFS. GSK exports approximately 75 per cent of the medicines manufactured in Australia to 58 countries across Europe, the Middle East and Asia.

GSK Boronia’s environmental sustainability statistics:

CO2

Energy-usage related CO2 emissions for 2015 were

12,237

2.9%

tonnes

a reduction of

from 2014

The introduction of energy smart projects, such as the deployment of a high efficiency chiller as well as the effective management of environmentally controlled storage space, resulted in a 6.8 per cent reduction in emissions and helped to offset increases through production capability and supply increases.

Water

Water-usage in 2015 was

31,562

3.2%

kL

an increase of

from 2014

Efficient use and resolution of water losses provided a reduction of 8.9 per cent, offsetting increases in production demand. These increases were generated through production capability, supply increases and environmental negative impacts on rainwater harvesting opportunities.

Waste

Total waste generated at the Boronia site in 2015 was

1,604

8.0%

tonnes

a decrease of

This reduction in waste was achieved through improved production processes yielding decreases in waste. Through innovative management of recycling, landfill waste from the Boronia site was reduced by 9 per cent to 91 tonne. Now, 93 per cent of non-hazardous waste generation is recycled.

over the previousyear with increasedproduction output

Online access:Read more about Our Planet from our Global Responsible Business Supplement athttp://gsk.com/en-gb/responsibility/


www.gsk.comHere you will find downloadable PDFs of:

• Annual Report 2015

• Annual Summary 2015

• Responsible Business Supplement

All money is in Australian Dollars unless otherwise specified.

Front cover: Bill Andrews, HR Business Partner, Consumer Healthcare Australia.

The way we conduct our business is just as important as our financial performance. Our success depends on our ability to research and develop innovative medicines, vaccines and consumer healthcare products and make them more accessible for more people in a responsible way.

Our approach to responsible business

Contact us

Responsibility is integrated across every area of our business and remains central to our company strategy.

The Responsible Business Highlight Report provides context and detail for how we address what we consider to be key priorities for running a responsible business: Health for

all, Our behaviour, Our people, Our planet. These key areas were selected because they align with macro economic and social trends that are impacting contemporary business and wider society.

In an effort to provide context to our local business in Australia and New Zealand and

to demonstrate how we work as a global company, we have included references to both global and local initiatives in this document. More information about our global governance, sustainability targets and details about how we are performing as a global healthcare company can be found at www.gsk.com

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Documents

Responsible Business Highlights Report 2015 GSK Australia and