Responsible Sourcing

Since 2022, we have been a member of Together for Sustainability (TfS), a joint initiative based on the principles of the United Nations Global Compact and the Responsible Care Initiative of the International Council of Chemical Associations (ICCA). The mission of the initiative is to drive sustainability (environmental, social, governance) improvements across the members’ supply base. As a member-driven organization and peer-to-peer network, TfS member companies aim to harmonize increasingly complex supply chain management processes and optimize dialog among worldwide business partners and suppliers.

We are also a member of Pharmaceutical Supply Chain Initiative - PSCI since 2019. The PSCI is a group of pharmaceutical and healthcare companies that share a vision of better  social, environmental and economic outcomes in the communities we serve. Its purpose is to bring the industry together to define, implement, and champion responsible supply chain practices, which include:

• Fair and safe work conditions and practices
• Responsible business practices
• Environmental sustainability and efficient use of resources

Participation in TfS and PSCI enables us to enhance our supplier sustainability program by leveraging the collective, collaborative strength of industry partners and suppliers to make sustainable improvements in the supply chain.

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, and the standards relevant to their business. This requires systematic assessment and auditing through documentation and records. We routinely conduct audits of suppliers to monitor their compliance in accordance with the PSCI audit standards.

To support our suppliers in evaluating their sustainability performance, we invite them to perform a tailor-made Supplier Sustainability assessment and audit, depending on the risk profile of the supplier indicated by Lonza’s internal risk methodology. When we identify supplier sustainability risks related to our Supplier Code of Conduct principles, we activate a Corrective Actions Plans (CAPs) program and follow-up assessments and 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. Our due diligence process embodies the substantive components of the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas (CAHRAs), the Swiss conflict minerals regulation and the EU Regulation 2017/82137.

Greenhouse gas (GHG) emissions associated with our supply chain are a major contributor to our overall corporate carbon footprint. Scope 3 emissions include GHG emissions from purchased goods and services, capital goods, upstream and downstream transportation and distribution, waste generated in operations, employee commuting, business travel, and fuel- and energy-related activities. A large proportion of Lonza’s Scope 3 GHG emissions can be attributed to purchased goods and services. In order to reduce such emissions across the supply chain, we have launched a Supplier Decarbonization initiative with the support of an external partner. Through this collaboration, our top emitting suppliers can submit their environmental data to Lonza and other customers, and access expert advice to reduce their carbon footprint.