Celltrion Emphasizes 'Sustainable Management'... Publishes 'ESG Report'

Celltrion announced on the 27th that it has published the '2023·24 Celltrion ESG (Environmental, Social, and Governance) Report' containing its sustainable management strategies and performance on its official website.

Cover of Celltrion's 2023-2024 ESG Report
[Photo by Celltrion]

This is the second time Celltrion has published an ESG report. Since last year, Celltrion has been releasing reports to disclose its ESG management activities and financial performance and to communicate with various stakeholders.

This report was prepared in accordance with the Global Reporting Initiative (GRI) standards. It also reflects global disclosure trends such as the International Financial Reporting Standards (IFRS) Sustainability Disclosure Standards, Sustainability Accounting Standards Board (SASB), and the Task Force on Climate-related Financial Disclosures (TCFD) recommendations.

Additionally, through a double materiality assessment conducted again this year following last year, Celltrion identified 10 major ESG issues, including three core issues: ▲Research and Development (R&D) innovation ▲Improvement of medical accessibility ▲Response to climate change. The report details the achievements and goals for these issues and includes management status by sector. The double materiality assessment selects key issues by considering both the impact of corporate activities on the environment and society and the impact of external environmental and social factors on the company’s financial value.

In the environmental sector, Celltrion has established a 2045 carbon neutrality roadmap, aiming to reduce direct greenhouse gas emissions (Scope 1) and indirect greenhouse gas emissions (Scope 2) by 42% by 2030 compared to the base year (2022), and to achieve 100% reduction by 2045. Through best efforts to achieve these goals, Celltrion plans to actively participate in climate change response by practicing green management aimed at a clean future environment.

In the social sector, Celltrion presented efforts and a blueprint to improve patients’ lives through R&D innovation and to support marginalized patients facing difficulties in accessing medicines. Celltrion expects that its FDA-approved autoimmune disease treatment drug, Zimpentra, developed as the world’s first subcutaneous injection formulation of an infliximab-based medicine, will significantly contribute to improving patients’ quality of life. It also anticipates leading the biosimilar market, which offers treatment benefits to more people at reasonable costs while maintaining efficacy equivalent to expensive original drugs, thereby expanding medicine accessibility for vulnerable groups. Furthermore, with the completion of its third plant this year, securing a total biopharmaceutical production capacity of 250,000 liters, Celltrion plans to continuously expand production facilities to meet increasing demand for biopharmaceuticals and improve medical accessibility through production expansion.

In the governance sector, Celltrion enhanced the independence and diversity of its board of directors by increasing the proportion of outside directors and appointing additional female directors through the merger between Celltrion and Celltrion Healthcare. Celltrion operates a total of four committees within the board, including the Audit Committee, the Compensation Committee, the Outside Director Nomination Committee, and the ESG Committee, to ensure sound governance. In particular, the merger simplified the transaction structure and improved transparency, which is expected to directly lead to increased trust from investors.

Additionally, Celltrion obtained new certification for its Information Security Management System (ISO 27001) and strengthened its information security capabilities as a national advanced strategic technology holder. It also enhanced its integrated risk management system to identify and manage both financial and non-financial risks. Moving forward, Celltrion plans to strengthen the stability of pharmaceutical production and supply and actively monitor internal and external risk factors through the continuous operation of its Business Continuity Management System (BCMS) in compliance with the international standard ISO 22301.

A company representative stated, “Celltrion is striving to fulfill its mission of enhancing human health and welfare centered on environment, society, and governance,” and added, “We will continue to transparently disclose ESG activities and performance across all management operations through the ESG report.”