Performance indicators 2020

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ETHICAL BUSINESS PRACTICES PERFORMANCE INDICATORS

2020

2019

2018

Novartis associates trained and certified on the Code of Ethics (%)¹

98

Misconduct cases (central matters) reported to the SpeakUp Office^2, 3, 4

142

209

441

Total SpeakUp Office allegations (central matters)^2, 4, 5

243

427

768

SpeakUp Office allegations (central matters) per category (%)^2, 7

Fraud/asset misappropriation

7.8

6.8

21.6

Expense fraud

2.9

5.4

23.4⁸

Books and records, accounting irregularities

0.8

1.2

0.4

Improper professional practices

11.9

16.9

22.3

Bribery, kickbacks

0.8

1.6

2.1

Discrimination and sexual harassment

12.8

8.2

4.0

Retaliation

3.0

6.3

2.1

Other employee relations issues

19.0

18.0

7.9

Conflict of interest

10.7

10.8

5.2

IT security breach

3.7

4.0

1.9

Quality assurance/data integrity

8.6

6.3

3.1

Data privacy

1.6

2.6

0.5

Antitrust, fair competition

0.8

0.2

0.3

Company confidential/trade secret information

3.7

0

Other

11.9

11.7

5.1

SpeakUp Office allegations (central matters) substantiated^2, 4, 6

114

254

558

Dismissals and resignations related to misconduct (central matters)^{2, 4, 6, 9, 10}

102

186

350

¹	Active Novartis associates with email addresses, trained via e-learning or via One Deck for Novartis Technical Operations. Training rolled out from September 2020 to February 2021, with a preliminary completion rate as of December 31, 2020.
²	A central matter applies to a senior leader or manager, potentially disruptive reputational impact, sexual harassment, discrimination, retaliation and significant financial impact.
³	The number of misconduct cases reported may change year-on-year as matters may be reassessed in the course of the case lifecycle.
⁴	The decrease in the number of misconduct cases reported is due to a new risk assessment as of 2019.
⁵	The number of allegations is higher than the actual number of cases as a case can have more than one allegation.
⁶	May include allegations from previous years
⁷	Percentages are based on total SpeakUp Office allegations number. Results for 2019 and 2018 have been revised to reflect the change in methodology from using the number of misconduct cases to the number of allegations.
⁸	Until the end of 2018, these expense fraud allegations are assessed to be of higher risk in China. The risk assessment of these issues changed as of 2019.
⁹	Data based on when investigation report was received. Results for 2019 and 2018 have been revised to reflect this change in methodology.
¹⁰	Data based on year when case is closed. Results for 2019 and 2018 have been revised to reflect this change in methodology.

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Animal testing indicators
	2020	2019	2018
Rodents	76.1% (312 332)	78.2% (355 451)	70.4% (360 417)
Zebrafish	23.8% (97 596)	21.5% (97 551)	29.2% (149 474)
Other species	0.1% (431)	0.3% (1 452)	0.4% (2 246)

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ACCESS TO HEALTHCARE PERFORMANCE INDICATORS¹
	2020	2019	2018
Total patients reached (millions)	769	799	765
Patients reached through access-to-healthcare activities (millions)¹	66	16	25
Sustainability-linked bond (September 23, 2020 – September 23, 2028)
Strategic innovative therapies patient reach	695 669	547 664	382 714
Flagship programs patient reach	43 912 152	15 069 483	28 509 151

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2020²

2019

2018

Novartis Global Health

Countries with products on the ground

115

33

26

FTEs^3, 4

1 334

786

651

Patients reached with products (thousands)⁵

65 828.3

15 069⁶

28 509⁶

Health educators trained

671

1 536

1 028

Healthcare providers trained⁷

12 648

1 516

697

Policymakers trained

90

145

131

Points of service provision⁸

5 902

13 635

15 190

People reached at points of service provision

486 642

986 701

765 055

Awareness events held⁹

424 878

250 432

185 756

People reached at awareness events

8 048 360

10 211 704

982 078

²	Data reflect the full scope of access approaches managed by the Global Health organization, including the activities formerly managed by Novartis Social Business, as well as the newly formed sub-Saharan Africa (SSA) organization and the Integrated Access Programs & Markets unit. More details are onDeveloping effective affordability strategies, Integrated access programs & markets, Leaving no patient behind in sub-Saharan Africa, Patient assistance programs
³	Full-time equivalent positions and contractors
⁴	Significant number of headcounts integrated from different units as a result of the establishment of the new SSA organization
⁵	The patient number was calculated based on treatments delivered and the following elements: daily treatment doses, treatment duration, treatment adherence and potential treatment overlap (NCD patients often take several drugs). The treatment adherence and treatment overlap factors are based on assumptions from developed markets.
⁶	Data restated to reflect the patients reached as defined by the sustainability-linked bond, which includes private sector sales in LMICs
⁷	Shift to virtual events
⁸	Points of service provision include facilities and health camps where healthcare services are provided.
⁹	In India, we adjusted our approach from hosting large health education meetings with community groups to a door-to-door model, and also partnered with schools to deliver health education to classrooms virtually. This led to an increase in the number of events, but with a restricted reach.

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Patients reached (thousands)

2020

2019

2018

Emerging market brands

Novartis Pharmaceuticals

355.1

302.6

213.3

Novartis Oncology

13.9

11.3

8.2

Patient assistance programs

Novartis Patient Assistance Foundation Inc. (US)

102.7

87.2

68.1

Novartis Oncology Access

33.9

60.7

71.1

Donations

Leprosy (WHO)¹⁰

245.4

168.6

176.2

Fascioliasis/Egaten¹¹

132.8

154.7

CMLPath to Care™

30.2

14.4

13.4

¹⁰	In 2020, the leprosy program fully transitioned to the Global Health organization as one of the flagship programs and is also included in data reported in the Novartis Global Health table above.
¹¹	Numbers of patients reached have been updated to reflect the new methodology used by WHO and based on real-world evidence.

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Value USD (millions)¹³

2020

2019

2018

World Child Cancer

<0.01

<0.1

0.1

Emergency relief¹²

2.5

2.8

4.7

¹²	Monetary and product donations
¹³	Wholesale acquisition cost (WAC) plus logistics costs for some programs

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PEOPLE PERFORMANCE INDICATORS

2020

2019

2018

Full-time equivalent positions/headcount¹

105 794/
110 738

103 914/
108 776

104 780/
108 422

Turnover: % voluntary/% overall

5.2/10.1

7.0/14.0

7.4/12.0

Voluntary turnover of high performers (%)

4.2

5.4

5.8

Internal hires/external hires (%)

58/42

55/45

54/46

External hires by gender (% female/% male)

52/48

53/47

52/48

Management representation by gender (% female/% male)²

Overall

45/55

44/56

43/57

Novartis Top Leaders³

33/67

31/69

30/70

Senior management

39/61

38/62

36/64

Middle management

46/54

45/55

44/56

Gender representation of Board of Directors (% female/% male)

29/71

25/75

Associate nationalities/associate nationalities in management²

142/113

149/110

142/113

Annual training hours per employee⁴

45.7

35.8

22.6

Associates represented by a trade union/internal work council or covered by a collective bargaining agreement (%)⁵

46

45

Gender split of leavers (% female/% male)

49/51

48/52

51/49

Median tenure in years by gender (female/male)

4.7/5.5

5.5/6.5

5.7/6.5

Internal promotion by gender (% female/% male)

52/48

51/49

50/50

Revenue-producing roles by gender (% female/% male)

50/50

49/51

48/52

Novartis IT and engineering workforce by gender (% female/% male)

32/68

31/69

30/70

Number of employees by employment contract (permanent and temporary), by gender⁶

Women employed on a permanent contract

53 729

51 906

51 139

Women employed on a temporary contract

1 935

2 327

2 316

Men employed on a permanent contract

53 096

52 691

53 252

Men employed on a temporary contract

1 629

1 718

1 669

Number of employees by employment contract (permanent and temporary), by region⁶

Employees on a permanent contract in Asia-Pacific region

27 711

26 559

26 581

Employees on a temporary contract in Asia-Pacific region

300

666

654

Employees on a permanent contract in Europe/Middle East/Africa region

56 852

56 855

57 178

Employees on a temporary contract in Europe/Middle East/Africa region

3 016

3 063

3 010

Employees on a permanent contract in Latin America region

5 092

5 311

5 395

Employees on a temporary contract in Latin America region

157

194

206

Employees on a permanent contract in North America region

17 170

15 872

15 237

Employees on a temporary contract in North America region

91

122

115

Number of employees by employment type (full time and part time), by gender⁶

Women employed on a full-time contract

48 472

46 907

46 502

Women employed on a part-time contract

7 204

7 338

6 953

Men employed on a full-time contract

53 507

53 164

53 932

Men employed on a part-time contract

1 219

1 246

989

¹	Headcount reflects the total number of associates in our payroll systems. Full-time equivalent adjusts headcount for associates working less than 100%. All data as of December 31
²	Management defined by Global Job Level Architecture and Novartis Top Leaders
³	Novartis Top Leaders comprise the approximately 300 most senior managers at Novartis, including the Executive Committee of Novartis.
⁴	See Selected training programs for associates for a list of selected training programs.
⁵	Non-management associates
⁶	Less than 0.5% of associates have unknown classification.

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Pharmacovigilance, safety profile and quality of drugs performance indicators

2020

2019

2018

Novartis Group health authority regulatory reporting (ICSRs)¹ (%)²

95.0

98.6

99.1

All audits

Total audits executed³

903

1 607

2 147

Internal

111

162

250

External

792

1 445

1 897

All regulatory authorities

Inspections

126

187

202

Inspections considered acceptable (%)

99.2⁴

96.8

98.5

FDA inspections

6

19

18

FDA warning letters

0

FDA Form 483

1

11

8

FDA sponsor inspections

Inspections related to clinical trial management and pharmacovigilance

1

2

3

Number of VAI (Voluntary Action Indicated)

0

1

Number of OAI (Official Action Indicated)

0

Recalls

27

29

42

FDA recalls⁵

0

2

Class I recalls⁶

1

3

5

Class II recalls⁶

21

18

¹	ICSRs: individual case safety reports
²	% represents on-time regulatory submissions. Data reflect January to November 2020.
³	The reduction in the number of audits is primarily due to the divestment of Novartis divisions, manufacturing network and supplier consolidation, and for 2020, the impact of COVID-19.
⁴	One inspection may require further improvement; the final classification by the health authorities is still to be determined.
⁵	As recorded on the FDA’s “Recalls, Market Withdrawals, & Safety Alerts” webpage
⁶	Definition of Class I/II recalls is given on the FDA webpage “Recalls Background and Definitions”

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SUPPLY CHAIN PERFORMANCE INDICATORS

2020

2019

2018

Suppliers risk-assessed by TPRM^1, 2

8 448

2 839³

NA⁴

Suppliers with remediation action agreed^2, 5

521

122

89

Suppliers audited²

35

135

48

Suppliers assessed for anti-bribery risks

2 014

479³

NA⁶

Suppliers assessed for animal welfare

10

3³

NA⁶

Suppliers assessed for business continuity plans

70

NA⁶

Suppliers assessed for financial due diligence

193

NA⁶

Suppliers assessed for health, safety and environment

315

226³

NA⁶

Suppliers assessed for information security and data privacy

3 174

1 142³

NA⁶

Suppliers assessed for labor rights risks

4 635

1 423³

NA⁶

Suppliers assessed for Quality GmP

561

162³

NA⁶

Supplier engagements stopped due to risk assessment outcomes

120

15³

NA⁶

¹	TPRM: Third-Party Risk Management
²	Includes new suppliers and new products, services or sites from existing suppliers. Figures do not include GxP audits. (see page Helping ensure patient health and safety for more details).
³	Data reflect April to December 2019, based on the TPRM program geographical rollout.
⁴	Data not available; the TPRM program was not launched.
⁵	Follow-up includes more information requested, audits or on-site assessments.
⁶	Not available; the specific risk domain was not yet included in TPRM

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HEALTH, SAFETY AND ENVIRONMENT PERFORMANCE INDICATORS¹

2020

2019

2018

Lost-time injury and illness rate (per 200 000 hours worked)²

0.13

0.18

0.15

Total recordable case rate (per 200 000 hours worked)^2, 3

0.23

0.35

0.33

Energy use (million gigajoules), on site and purchased

11.15

12.74

13.04

Greenhouse gas (GHG) emissions, Scope 1, combustion and process (1 000 tCO₂e)

296.2

356.6

334.5

GHG emissions, Scope 1, vehicles (1 000 tCO₂e)

100.2

128.4

146.3

GHG emissions, Scope 2, purchased energy (1 000 tCO₂e)

392.2

411.6

448.7

GHG emissions, Scope 3, business travel (1 000 tCO₂e)

27.0

191.3

211.7

Total GHG emissions, Scope 1 and Scope 2 (1 000 tCO₂e)⁴

788.6

896.6

929.5

GHG offsets (1 000 tCO₂)

35.4

29.8

54.9

GHG emissions (Scope 1 and Scope 2) per sales (tCO₂e per million USD)

16.20

18.86

20.8

GHG emissions (Scope 1 and Scope 2) per associate (tCO₂e)

7.12

8.22

8.58

Halogenated volatile organic compounds (VOCs) (t)

13.18

26.59

78.98

Non-halogenated VOCs (t)

446.25

406.82

480.10

Non-hazardous waste recycled (%)

86.6

81.7

82.0

Hazardous waste recycled (%)

46.9

58.8

54.9

Non-hazardous waste not recycled (1 000 t)

8.8

12.9

12.5

Hazardous waste not recycled (1 000 t)

34.2

41.2

47.3

Water withdrawal (million m³)⁵

54.7

66.8

69.5

Water discharged directly to aquatic environment (cooling water) (million m³)

46.1

55.5

57.9

Water consumption (million m³)⁶

8.5

11.2

11.9

¹	The 2020 environmental and resource data published in the Annual Report and the Novartis in Society Report are actual data for the period from January through September, and best estimates for the period from October through December. This data will be updated with actual data in the first quarter of 2021. Significant deviations will be reported on our website and restated in next year’s Annual Report.
²	Data includes Novartis associates and third-party personnel managed by Novartis associates.
³	Data include all work-related injury and illness, whether leading to lost time or not.
⁴	Scope 1: combustion and process, and vehicles; Scope 2: purchased energy
⁵	Sum of contact water and non-contact (cooling) water use
⁶	Water discharged via treatment and water lost

Novartis in Society ESG Report 2020

Performance indicators 2020

Holding ourselves to high ethical standards

Being part of the solution on pricing and access; addressing global health challenges

Being a responsible citizen

PATIENT HEALTH AND SAFETY PERFORMANCE INDICATORS