For Lonza, Responsible Sourcing means a continuous commitment to upholding the highest social, environmental and governance standards when making sourcing decisions. Our Procurement team develops Responsible Sourcing strategies for spend categories, raw materials and services. Our risk analysis process enables us to identify high-risk materials and geographies and take adequate mitigation actions.

Together with our suppliers, we are further shaping our collaborative approach and driving this process forward. Our suppliers and supply chain relationships are key to the success of this commitment.

To underline Our Commitment to Sustainability, we have developed a binding Supplier Code of Conduct. This Code sets forth key ethical, social, environmental and governance standards and principles that Lonza expects its suppliers, business partners and their contractors to adhere to, both globally and locally.

Adherence to the standards and principles expressed in Lonza’s Supplier Code of Conduct comprises important criteria in selecting and evaluating suppliers. Moreover, we expect our suppliers to pass along these standards and principles further down their supply chain. Lonza Supplier Code of Conduct is made available to our suppliers with the goal of strengthening our mutual understanding and commitment of how sustainability should be practiced in day-to-day business.

The PSCI is a non-profit business membership organization established in 2006, which Lonza joined in February 2019.

The PSCI is a group of pharmaceutical and healthcare companies who share a vision of better, social, environmental and economic outcomes in the communities we serve. This includes:
  • Fair and safe work conditions and practices
  • Responsible business practices
  • Environmental sustainability and efficient use of resources

The purpose of the initiative is to bring together the pharmaceutical industry to define, implement, and champion responsible supply chain practices. It has developed a set of principles that set the guidelines for a more sustainable supply chain. We have embedded these principles in our Lonza Supplier Code of Conduct and expect our suppliers to follow them. We routinely conduct audits of suppliers to monitor their compliance in accordance with the PSCI audit standards.

Our suppliers should ensure sustainable and ethical business practices through policies, targets, management systems and processes that reflect the impacts and opportunities of the organization. In addition, they should strive for continuous improvement of their sustainability performance. We expect our suppliers to comply with our Supplier Code of Conduct principles, applicable laws, rules and regulations as well as the standards relevant for their business. This requires systematic assessment through documentation and records.

To support our suppliers in assessing their Sustainability performance, we invite them to perform a tailor made Supplier Sustainability assessment, depending on the risk profile of the Supplier indicated by Lonza internal risk assessment. When we identify supplier Sustainability risks related to our Supplier Code of Conduct principles, we activate a program of Corrective Actions Plans (CAPs) and on-site audits.

Lonza has established a Conflict Minerals Public Policy Statement governing our position and expectations towards our suppliers on managing the use of Conflict Minerals in our supply chain, in accordance with the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas (CAHRAs), and as derived by the Swiss conflict minerals regulation and the EU Regulation 2017/82137.  

Greenhouse gas (GHG) emissions associated with raw materials are a major contributor to our overall corporate carbon footprint.

The so-called Scope 3 emissions include emissions from purchased goods and services, business travel, upstream and downstream transportation, waste disposal, employee commuting, etc. As generally observed in our industry, the main part of our Scope 3 GHG emissions can be attributed to purchased goods and services and capital expenditure. We are launching a program to improve our Scope 3 performance, and are targeting a reduction of GHG emissions across the supply chain by collaborating with our top suppliers.