The way forward: Our CSR ambitions, targets and tools

Improving the collection and analysis of CSR-related data is Crucell’s immediate priority and one of our main ambitions for CSR development. Without a comprehensive overview of our impact on society, we cannot hope to maximize the good we do while minimizing any adverse effects. That is our overriding ambition relating to CSR. Better information management is simply the means to that end.

Over the past two years, Crucell has made important progress in the development of global systems in many areas, including information management. This is a direct result of our intensive efforts to build a fully integrated, global biopharmaceutical company following the acquisition of the Swiss concern Berna Biotech and Swedish company SBL Vaccines in 2006. In the areas of environment, health and safety (EHS), for example, we now have access to solid data from our five main sites worldwide, representing over 90% of our workforce (comparable with the reporting coverage in the 2008 Annual Report CSR chapter).

While these data give us a substantial base for initial CSR target setting, they obviously do not provide the full picture needed for optimal CSR development. Achieving 100% information coverage (that is, data from all sites) is therefore one of Crucell’s most important short-term ambitions. This is one of the targets set for 2010. At the end of the year we want to have a complete picture of information relevant to our CSR ambitions, collected in the same way, using the same criteria and definitions.

To achieve this goal, we are currently developing the infrastructure needed for centralized management of all the information relevant to CSR. This ‘Reporting Manual’ with instructions, criteria and a reporting tool will be rolled out in 2010.

Once we have established our CSR baseline, with 100% coverage across sites, we will be able to perform quantitative analyses to identify possible improvements—for example, in EHS and the responsible management of our supply chain. This will enable quantitative target setting for the longer term. Table 2 gives an overview of our main ambitions relating to CSR.

Crucell’s Management Board has taken the ambitious step of formulating longer-term objectives in several areas. These are challenging targets: in 2020 a 15% reduction (from 2010 baseline) in our CO₂ footprint and a 10% reduction in water use, and in 2015 reaching a high standard of CSR transparency as measured by the Global Reporting Initiative (GRI) A level. Based on data collected within Crucell and comparison with others in the industry, we see these as ambitious but achievable targets.

“Crucell is committed to developing a systematic approach to CSR performance and reporting.”

Ambitions and targets will be reviewed annually and finetuned as new information generates deeper insight into the potential for improvement. Crucell’s Management Board will closely monitor progress and expand Crucell’s CSR ambitions if opportunities to do so become apparent. Thus, Crucell’s approach to CSR development will follow the principle of continuous improvement, which is fundamental to our corporate culture and business strategy.

Crucell has defined KPIs and ambitions in each of the four categories on which our CSR policy is based: Performance, People, Planet and Philanthropy. These are presented in the following paragraphs.

Table 2

¹DJSI – Dow Jones Sustainability Initiative, ²GRI – Global Reporting Initiative

The category ‘Performance’ covers the four aspects of CSR that relate most directly to Crucell’s core business: innovation, saving lives, responsible supply chain and transparency. Table 3 shows the qualitative or quantitative ambitions we have in these Performance areas and the KPIs we have chosen to assess achievements in each of these areas. The reasoning behind these choices is explained below.

Preventing illness and death caused by infectious diseases is our core business, and the essence of our corporate social responsibility. The prevention of deaths is the most powerful measure of the human benefit generated by our business, and our ambition is to continuously increase this impact. The calculation is based on the best available evidence regarding the efficacy of our vaccines, and the relevant disease and death rates in unvaccinated populations.

The number of products in our research & development (R&D) pipeline is a measure of the contribution we are making to people’s lives through the advancement of healthcare. Crucell deliberately focuses on the discovery and development of innovative products—vaccines and antibodies—that address significant unmet needs in global health.

Animal Welfare. Crucell will continue to apply the 3R principles – Reduce, Refine and (ultimately) Replace – and work closely with the regulatory authorities to further minimize the experimental use of animals in the course of bringing new vaccines and antibodies to the people who need them.

R&D expenses. The money Crucell spends on its R&D programs is a measure of the company’s commitment to invest in bringing healthcare innovations to market, and to do so as cost-effectively as possible. As announced in our financial guidance for 2010 (see press release on 2009 financial results, 9 February 2010), Crucell is focusing strongly on accelerating product development. Strong operating cash flow will be used to increase research & development spending by more than one-third in 2010 compared to the previous year.

Improving CSR information management is a prerequisite for increasing the contribution we can make to society. Having access to comprehensive information on relevant KPIs in 2010 will enhance further target setting.

Responsible supply chain management. The prerequisite for progressive improvement in this area has been achieved in 2009 with the professionalization of our procurement organization. The next step, for realization in 2010, is to incorporate industry best practices for responsible supply chain management, as defined by the Pharmaceutical Supply Chain Initiative, into our global procurement policy. The ambition for 2011 is to train all relevant employees in this procurement policy and ensure that all suppliers adhere to it. In addition, monitoring of relevant developments in the sector is targeted, so that ambitions and indicators can be refined, if necessary.

Transparency objectives. Crucell has recently made very good progress on external benchmarks of CSR reporting, as described in the CSR benchmarks section. Our ambition is to continue this rapid improvement. We have set the challenging target of reaching the Global Reporting Initiative ‘A’ level of CSR transparency in 2015.

“Improving CSR information management is a prerequisite for increasing the contribution we can make to society.”

Table 3

¹ PSCI – Pharmaceutical Supply Chain Initiative, ² DJSI – Dow Jones Sustainability Initiative, ³ CDP – Carbon Disclosure Project, ⁴ GRI – Global Reporting Initiative

Crucell has made significant progress over the past two years in the area of Human Resources (HR) management and talent development. Global integration, leadership development and performance assessment procedures have been given special attention during this period, and turnover has decreased considerably (see the People section). Expanding career and learning development opportunities for all employees will be a focus during 2010.

In terms of CSR reporting, our ambition in 2010 is to formulate specific targets for each of the KPIs (see table 4). The choice of these particular KPIs reflects Crucell’s commitment to being an employer of choice.

Demographics. We value and support diversity—of culture, gender and age—in our organization. The relatively low number of women in senior management positions is a point for attention. However, Crucell is committed to recruiting and promoting employees on the basis of talent and ability, without negative or positive discrimination on the basis of gender, race or age.

Accidents. The health and safety of our employees is of great importance to us, and we take proactive steps to enhance these. Achieving more comprehensive and detailed information on accidents at work is a priority for 2010 and a prerequisite for future target setting.

Turnover. Attracting and retaining talented employees is an ongoing priority. We see turnover as a key indicator of how well we are doing in this regard.

Empowerment and fairness. Crucell is committed to fair remuneration and the empowerment of employees, for example through regular performance reviews.

“Attracting and retaining talented employees is an ongoing priority.”

Table 4

Thanks to improved collection of environmental data in 2009, Crucell has been able to formulate long-term ambitions and targets for reducing water use and its CO₂ footprint. Comprehensive measurement of these KPIs across all sites in 2010 will establish the baseline against which progress will be measured in subsequent years and allow finetuning of targets. Targets for health and safety measures (accidents and waste disposal) will be formulated in 2010 as better data management enables meaningful analysis.

Table 5

*Relative to number of FTEs

As a company deeply committed to improving human health and well-being, Crucell actively seeks out opportunities to do more for society than it ‘needs’ to do from a business point of view. These efforts span a wide range of activities, from sharing scientific knowledge to supporting the development of local communities. Improving access to healthcare, especially in the world’s poorest countries, is a high priority. We do that by working with governments, non-governmental organizations (NGOs), policy makers, industry groups and public–private partnerships such as the GAVI Alliance, as well as local community groups. Our ambition is to continue our involvement in a broad spectrum of philanthropic activities, and to report on these efforts in a transparent way.

Table 6

To support the embedding of CSR in the organization, Crucell has established the following responsibilities and procedures.

• Ronald Brus, Chief Executive Officer, has final responsibility for Crucell’s CSR program and its ongoing development.
• Cees de Jong, Chief Operating Officer, has overall responsibility for operational aspects of the CSR program.
• A CSR working group will be established to monitor and facilitate CSR development.
• Progress on the CSR program will be discussed at Management Board meetings.
• The CSR working group will meet at least two times a year to discuss CSR development and evaluate progress.

Corporate social responsibility (CSR) is an integral part of Crucell’s mission to conduct good business, for the good of humanity. Crucell is committed to continuous development of its approach to CSR reporting and the engagement of stakeholders in dialogue about sustainability issues. We are pleased to have taken important steps in this direction during 2009.

Crucell welcomes feedback on this report or any issues related to our CSR activities. Your opinion matters to us. Reactions can be sent to csr@crucell.com.