15 December 2022

I am pleased to confirm that the Aenova Group, headed by Aenova Holding GmbH in Germany, reaffirms its support of the Ten Principles of the United Nations Global Compact in the areas of Human Rights, Labour, Environment and Anti-Corruption.

In this annual Communication on Progress, we describe our actions to continually improve the integration of the Global Compact and its principles into our business strategy, culture and daily operations. We also commit to share this information with our stakeholders using our primary channels of communication.

Sincerely yours,

Jan Kengelbach
CEO

Aenova confirms to respect and support the International Declaration of Human Rights. Human Rights have been deeply embedded in the company's rules and are consequently part of the Code of Conduct.

The Code of Conduct is the foundation of rules for Aenova employees and fosters integrity, respect, transparency and honesty within daily work, both with colleagues and external parties. Aenova´s Code of Conduct is supported by its 5 company values, which also underlines the value-driven and compliance-oriented corporate culture.

The Aenova Supplier Code of Conduct will be rolled out soon and require suppliers to comply with the Declaration of Human Rights and the ILO standards.

The Code of Conduct is rolled out across the entire Aenova Group and Aenova employees are trained to adhere to the Code of Conduct, the basis of daily operations at Aenova.

With our Aenova HR Principles, we are laying the foundation, applicable at all locations, with a commitment to a fair and respectful treatment of the employees, as well as the development and growth of the employees.

For example, the HR Principles set out guidelines for diversity, gender equality and inclusion, equal employment opportunities, grievance handling and no harassment and bullying.

In 2021 Aenova signed the german based Diversity Charter, a voluntary commitment to diversity. With this Aenova underlines its commitment to an appreciative and inclusive working environment for all employees – regardless of, for example, their age, ethnic origin, nationality, gender identity or religion.

Aenova operates a whistleblower reporting procedure through the Compliance and HR function. Employees are encouraged to report and mechanisms against retaliation are implemented.

Aenova has a whistleblower reporting procedure in place through the compliance and HR functions. The procedure is described in the Code of Conduct for internal and external stakeholders. Employees receive additional information through Code of Conduct training, internal information materials and the intranet.

Cases are received by Compliance or the HR function and assessed by competent and independent colleagues after a plausibility check. Appropriate measures are taken, and their implementation is monitored and documented in accordance with data protection requirements. Senior management is informed on a quarterly basis about the status of cases and the implementation of measures.

Aenova has introduced HR principles which are based on the Global Compact Labour principles. These HR Principles apply equally to the entire Group. They include freedom of association, employee rights and responsibilities, remuneration and benefits.

The risk of a violating the Human Rights and ILO standards varies due to operations in several countries. In Central European locations, local labour law reflects international standards. Sites with a higher risk-exposure have implemented appropriate certifications with regard to ILO standards.

Aenova has HSES Guiding Principles. Aenova's HSES Guiding Principles set out environmental and sustainability goals, as well as goals related to employee health and safety.

The Aenova Supplier Code of Conduct will be rolled out soon and require suppliers to comply with the Declaration of Human Rights and the ILO standards.

Aenova´s Code of Conduct together with Aenova´s HR Principles outline the importance of fairness and security at work. The Aenova HR Principles outline the recognition of freedom of association. There Aenova commits to engage in constructive communication and cooperation with the representatives from the labour force, as well as the participation of work councils or trade unions, always in accordance with local laws and regulations. Aenova has workers councils at its sites.

The Aenova HSES Guiding Principles set the goals for the achievement of employee occupational health and safety Aenova has already introduced occupational health and safety management systems (e.g. in accordance with ISO 45001) at some of the manufacturing sites. Aenova records all accidents involving own employees and employees of other companies when they work for Aenova. Aenova systematically records and deals with identified hazards to prevent accidents in advance. Aenova strives to continuously reduce the accident rate (LTIR). Aenova promotes regular actions to maintain and promote the health of the employees. Aenova supports the manufacturing sites in introducing occupational health management.

Aenova operates a whistleblower reporting procedure through the Compliance and HR function. Employees are encouraged to report and mechanisms against retaliation are implemented.

Aenova’s employees are its greatest asset. Aenova reported regularly HR figures regarding age, gender, years of service and nationality.

Aenova records all accidents involving own employees and employees of other companies when they work for Aenova. Aenova systematically records and deals with identified hazards to prevent accidents in advance. Aenova strives to continuously reduce the accident rate (LTIR). Reports on this are made on a regular basis.

Aenova has a whistleblower reporting procedure in place through the compliance and HR functions. The procedure is described in the Code of Conduct for internal and external stakeholders. Cases are received by Compliance or the HR function and assessed by competent and independent colleagues after a plausibility check. Appropriate measures are taken, and their implementation is monitored and documented in accordance with data protection requirements. Senior management is informed on a quarterly basis about the status of cases and the implementation of measures.

Aenova has implemented a CSR Policy.

The Aenova CSR Policy sets out the key principles regarding environment, social and governance. The Aenova CSR Policy is based on Aenova´s support of the 10 UN Guiding Principles and the UN Sustainable Development Goals.

Regarding environment, Aenova complies with legal requirements and are constantly working on improvements. The local strategies are based on the overall corporate strategy, which includes: the global Aenova HSES program, based on the overall Aenova HSES Guiding Principles.

The focus there is on continuous improvement in environmental protection and sustainability (e.g. energy efficiency, careful use of resources like water and energy consumption, minimizing emissions, appropriately dealing with potential leakages, reducing waste, recycling where possible).

The Aenova Supplier Code of Conduct is under construction and will require business partners and suppliers to adhere to the Global Compact lobal Compact environmental principles.

Aenova continuously strives to reduce emissions of any kind, waste, and the use of resources. Aenova maintains a high standard towards environmental protection, and aims for stepwise certifications in e.g., ISO 14001 (environment) and/or ISO 50001 (energy). Aenova invests ongoing for state-of-the-art cogeneration plants. Aenova hosts periodic energy audits at all 15 sites identifying further greenhouse gas reduction potentials. Three of the Aenova sites are already carbon-neutral.

Regarding sustainability, Aenova is a member of MSC (Marine Stewardship Council) and Aenova shows PSCI (Pharmaceutical Supply Chain Initiative) readiness by client audits.

Aenova monitors and assesses the measures and report based on relevant performance indicators at least annually, e.g.: external annual EcoVadis assessment, PSCI readiness shown by client audits, continuous external tracking of environmental data via Ecodesk for key clients, periodic internal reporting and monitoring of KPIs relevant for CSR and ESG.

In 2022 Aenova achieved the EcoVadis silver medal.

Aenova’s Anti-corruption program is embedded in the overall Compliance Management System and based on the UN Compact against Corruption. As part of the program, Aenova regularly conducts risk assessments to evaluate corruption and antitrust risk. Based on the assessments, the measures implemented are reviewed and adjusted if necessary.

Aenova's Code of Conduct together with the Anti-Corruption Policy clearly state that Aenova does not tolerate any form of corruption and bribery and already wants to avoid any appearance of improper business. The policy clarifies the Code of Conduct with clear behavioral instructions and examples. Risk-exposed employees receive specific anti-corruption training.

The Aenova Supplier Code of Conduct will be rolled out soon and require suppliers to comply with the applicable Anti-Corruption laws.

Aenova´s Anti-corruption program is part of its Compliance program. The overall responsibility lies with the senior management. The Chief Compliance Officer and the Head of Compliance perform the program on a corporate level and are supported by Local Compliance Officers at all sites.

Employees are informed via Code of Conduct and Anti-Bribery policy, tailored trainings, mailings, dedicated intranet sites, paper-based information materials, and information from line manager.

Aenova has a whistleblower reporting procedure in place through the Compliance and HR functions. The procedure is described in the Code of Conduct for internal and external stakeholders. Employees receive additional information through Code of Conduct and Anti-Corruption training, internal information materials and the intranet.

Cases are received by Compliance or the HR function and assessed, in cases of corruption or bribery by the Head of Compliance. Appropriate measures are taken, and their implementation is monitored and documented in accordance with data protection requirements. Senior management is informed on a quarterly basis about the status of cases and the implementation of measures.