PSCI Annual Report 2022

Annual Report
2022
Growing Connections
Growing Connections 02
Growing Connections
Contents
PSCI Annual Report 2022

2022 at a Glance
2022 at a Glance 04
Who we are
Who we are 05
Board and Governance 06
Board
The PSCI Principles 08
Principles
Our Modes of Impact 10
Audit 11
Modes of Impact
Capability Building 14
Collaborative Projects 18
Partners 19
Partners
Financials 21
Our Members 22
Financials
The Year Ahead 24
Members
Contact 25
The Year Ahead

Growing Connections Message from the Chair 03
Growing Connections
Growing
One theme that comes through Partnering with the SMI and Energize has

strongly is the growing importance of been one of my personal highlights in my
decarbonization in our value chains – year as Chair, but there have been many
Connections
helping our suppliers to immediately and others. I am always struck by the quality
practically reduce their carbon emissions and effectiveness of our volunteer Board
2022 at a Glance
- and the need for partnerships to tackle and would like to extend my thanks to
it. I am really pleased to have linked with every one of the PSCI’s Leadership group
the Energize program and the Sustainable for their commitment and contribution.
I T F E LT G R E AT T O R E C O N N E C T Markets Initiative working together to I am happy to leave the Board in Ingrid’s
AND SHARE OUR BEST PRACTICE
AND CASE STUDIES reach hundreds of suppliers and transform safe and experienced hands, looking
Victoria Stone-Bjarup / 2022 PSCI Chair the sector. forward to another successful year.
Who we are
HEAD OF ENVIRONMENTAL COMPLIANCE, NOVO NORDISK It’s an impact we can only make with
scale. My predecessor as Chair, Manjit
Singh, challenged us to reach 70 members
of the PSCI and this year we passed that
2022 was the year the world opened It also reminded
Board
milestone welcoming new joiners from
across the industry, but also increasingly
up, and the PSCI opened with it. from within our supply chain. We very me again of the
Principles
much support this - working with suppliers
We resumed meeting in-person, firstly
for the Board, then for our suppliers and
livestreaming our discussions globally.
This approach worked and we plan to
is critical to achieving our vision – but it
does pose questions on how we can best
importance of this
organization, with
Modes of Impact
finally for all our members by the end retain it to help control our own travel- nurture these relationships. We have
of the year. It felt great to reconnect related carbon emissions. Our China been working behind the scenes on a new
and share our stories. It also reminded
me again of the importance of this
supplier conference was online, with over
400 supplier sites watching, highlighting
model of supplier partnership, and I’ll
leave it for Ingrid to tell you more about
its bold ambition to
organization, with its bold ambition to
shift a whole global supply chain towards
again our impact in that crucial market.
But for the first time, our India team
our plans. shift a whole global
As we grow, we mature. Our operational
supply chain towards
Partners
excellence in social and environmental hosted their suppliers in-person at a three-
models have changed this year to reflect
outcomes. This ambition we can only day conference in Hyderabad. More than
realize together, through dogged 100 people joined us over the three days,
our increased membership and ambition.
In the pages of this Report, you will read excellence in social
Financials
commitment and – most importantly – listening to best practices, sharing case
connection and collaboration. studies, and asking questions.
about fresh emphasis on our nine Topic
Teams, which provide an amazing platform and environmental
In May, Novo Nordisk was able to host the
PSCI Board and Leadership group for our
This conference was one of my personal
highlights from the year as speaker after
for subject matter experts across the
industry to connect and collaborate. You outcomes.
Members
first in-person event since the pandemic. speaker pointed to the changes the PSCI will see how we have strengthened our
We invited the global membership to join capability building work has made in their audit tools and guidance, driving real Victoria Stone-Bjarup
us online, holding our Spring Meeting in company and the Indian pharmaceutical growth in sharing via our online platform 2022 PSCI Chair
The Year Ahead

a hybrid format; some in the room and industry; “five years ago at your first and thus reducing the burden on suppliers
most online. By our AGM in November conference, this content was new to us. and members. We have added a third,
we felt confident enough to invite all the Now we have our own teams working global supplier conference, launched our
US-based members to join us at West to improve our companies.” That is the Maturity Model tools, and professionalized
Pharma’s site in Exton, Pennsylvania, impact we seek to make. our supplier learning content.
2022
Growing Connections
18

New Associate Members Key Audit Stats
801
Audits on the PSCI platform
P. 2 4
2022 at a Glance
P. 1 2
at a Glance 74
Total membership
196
Audits uploaded
Who we are
124
Board
Audits shared
Supplier Conferences Development
of online
Principles
9
Total conference days
Legislation
*includes remote audits

P. 1 5
5500+
Tracker Audits downloaded
Modes of Impact
half-days
2100+
P. 1 8
Total conference attendees
Partners
16
Financials
Number of capability Launch of the PSCI Official
3100+
interactions with suppliers
Maturity Models to
Sustainability
P. 1 6
support structured
Members
950+
learning and
development
expert webinars delivered to
Partner of
aligned with the the CPHI
The Year Ahead

PSCI Principles
P. 1 4
Worldwide P. 2 1
attendees
Growing Connections
Who we are
The foundational commitment of all members is to the The PSCI is a non-profit organization incorporated in
Principles
Board

PSCI Principles. They are our blueprint for responsible the USA. We are led by an elected PSCI Board made up
practice, setting out our expectations for five relevant of representatives from our member companies who
topics. Members integrate them into their own supplier oversee the delivery of the PSCI strategy.
codes and uphold them in their operations, aiming
Our workstreams are driven by Committees made up of
2022 at a Glance
Committees
for continual improvement by advancing supplier
members. The Committees drive our program of audit
performance over time.
standardization and sharing and our supplier capability-
Since our founding, we have grown both in size and scale building work. At the end of 2022, our Governance,
First started as a collaborative project in 2006
Members
of ambition from six members in 2006, to 18 in 2015, Partnerships, and Communications committees merged
and formally established as an organization in and 74 in 2022. Our two-tiered membership model into one Operations Committee to oversee these
2013, the PSCI is a membership association of allows us to be more inclusive by offering an option for elements of the program more efficiently.
Who we are
smaller companies or those at the start of the journey
companies in the pharmaceutical and healthcare The Topic Teams are our hubs of expertise. Each team is
Sub-Teams Topic Teams

to learn from peers. At the end of 2022, we also began
led by experienced specialists from member companies
sectors united by a common vision of excellence to work on how we can recognize suppliers as long-term
and these teams work together to create high-quality
in safety, environmental, and social outcomes partners given the surge in membership interest from
Board
content and evaluation tools that are shared with other
pharmaceutical suppliers.
for the whole of the global pharmaceutical and member companies, suppliers, and partners via our
capability building workstream.
healthcare supply chain.
74
Principles
Membership The Regional Sub-Teams inject local knowledge and
Ambition
Our purpose is to bring together members to Growth expertise directly into our workstreams and enhance our
program offerings on a regional level. These teams are
define, establish, and promote responsible supply
Modes of Impact
made up of PSCI members and based in China, India, and
chain practices, human rights, environmental Latin America.
sustainability, and responsible business.
18
The Board would like to record its thanks to all the
members of the Committees, Topic Teams, Regional
Sub-Teams, and those who lead them.
Partners
6
The PSCI
Principles are
Financials
our blueprint
for responsible
practice,
setting out our
Members
expectations
for five relevant The Board, Committees, Topic Teams, and
topics. 2006 2015 2022 Regional Sub-Teams are supported by a
The Year Ahead

professional Secretariat provided by specialist
consultancy Carnstone Partners Ltd. The Board
We are steadily driving towards our vision for excellence
would like to record its thanks to Carnstone.
in safety, environmental and social outcomes across the
global pharmaceutical and healthcare supply chain.
Growing Connections
Board and Governance

2022 at a Glance
Advisory Panel
Lamy Manjit Victoria Rikke Enric Ingrid Aimee Rincy Ranjana Deirdre
Board
Bosch Vande Velde Pasquier2
Who we are
Bao Singh Stone-Bjarup Christensen1 Joseph Ganguly O’Reilly
Bristol-Myers Centrient Novo Nordisk LEO Pharma Boehringer Johnson Novartis Bayer Pfizer Viatris
Squibb Pharmaceuticals Ingelheim & Johnson
2022 Treasurer Past Chair Chair Secretary Treasurer-

Designate Vice-Chair Secretary-
Designate
Board
2023 Past Chair Treasurer Chair Secretary Secretary-
Designate
Treasurer-
Designate Vice-Chair
Principles
Secretariat
Committees
Audit Supplier Capability Communications Governance Partnerships
Modes of Impact
Birgit Daniel Silke Oeschger- Deirdre David McCarthy
Skuballa Rehm Delautre O’Reilly Pfizer
Bayer Elanco Animal Health Dr Reddy’s Viatris
Partners
Roy
Agostini
Rincy
Joseph
Our five permanent Committees* are established by the Board and drive
Mallinckrodt Bayer the PSCI’s projects forward to achieve our strategy.
* At the end of 2022, the Governance, Partnerships, and Communications Committees merged into one Operations Committee
Financials
Audit Sharing Auditor Training SAQ/Audit & Audit Guidance Responsible Sourcing Supplier Recognition Model China India Latin America
Regional
Teams
Sub-
Andrei Katsko Pfizer

3
Florian Hiller Roche
5
Gavin Loveday AstraZeneca Aditi Wanchoo Novartis Aimee Pasquier Novartis Catherine Zhang Dinesh Subhedar Edgar Flores
Members
Kareen Saunier Novartis Daniel Rehm6 Elanco Birgit Skuballa Bayer Elsie Palabrica Roche Bayer Novartis Ruvalcaba
Vijaya Sarathy Novartis
Mary Walsh4 Pfizer Dorota Wiacek7 Roche Noemi Molnar Roche
Birgit Skuballa8 Bayer West Pharma
The Year Ahead

Members
1
Stepped down in April 2 From April (Secretary-Designate until April) 3 Until September 4 From September 5 Until October 6 Until November 7 From September 8 From October
Growing Connections Board 07
Growing Connections
Topic Teams Advisory Panel

Our Advisory Panel challenges our thinking, helps us consider
Anne-Christine strategic questions, and scans the horizon for future developments.
2022 at a Glance
Eisland
AstraZeneca
Ethics
The Copper Pluto &
Mark Associates
Eliza Kasumi Tanya
Renda1 Blessing2 Murphy3
LEO Pharma Novo Nordisk AstraZeneca
Human Rights & Labor Hillary Amster Gerald Pachoud
Who we are
Director of Assurance & Impact Managing Partner
Vivian
Rivera Turo
Lilly Principles Transparency
Industrial Hygiene for Responsible International
Board
Investment
Health & Safety
Vijaya Daniel
Principles
Kumar Bendi Rehm Fiona Reynolds1 Sophie Ogilvy
Johnson & Johnson Elanco Animal Health CEO Business Integrity Program Director
Process Safety
Nordea Global
Modes of Impact
Lamy
Bao Health and
Safety
Bristol Myers Squibb Transparency
Magdalena Kettis Sarah Steingruber

Bridget Lucy Robert Active Ownership Director Advisor
Ferarri Pickett4 Williams5
Partners
Takeda Roche AstraZeneca
Scope 3*
Novartis Johnson
& Johnson
Environment
Andrea Lynette
Financials
Fasano Cartagena
Pfizer AbbVie
Environment
Klaus Moosmayer Rosina Wickert
Chief Ethics Risk & Compliance Officer VP Janssen Supply Procurement
Samuel Paul Jeff
Members
Maynard Barnett6 Brenchley7
AstraZeneca GSK Merck & Co. The Body Shop
PiE & AMR
The Year Ahead

Post open
The Management Systems Sub-Team meets on an ad hoc basis only, Esther Tsang2
Management Systems as and when the need arises Net Zero Manager
1
Until August 2 Until October 3 From August 4 Until September 5 From September 6 Until April 7
From April * Scope 3 is now Decarbonization (as of 2023) 1
Until September 2 From December
Growing Connections
The PSCI Principles
Members supporting

the Principles:
1
Will integrate and apply these
Principles in a manner consistent with
2022 at a Glance
their own supplier programs.
First agreed in 2006, the PSCI Principles for Responsible Supply Chain
2
At a minimum, operate in full
Management are our blueprint for responsible practice, setting out our compliance with all applicable laws,
rules and regulations; but in many
expectations for five relevant topic areas. cases behaving responsibly means
Who we are
going beyond these.
3
They form the foundation of the PSCI’s tools including our Audit Guidance and Templates and our Maturity Model for supplier learning and development. All PSCI members While companies supporting the
integrate these Principles into their own supplier codes and uphold them in their operations, aiming for continual improvement by advancing supplier performance over time. Principles understand that what is
expected is universal, it is understood
Board
that the methods for meeting these
expectations may differ depending on
size and location.
Principles
4
Understand the Principles are best
implemented through a continual
improvement approach that advances
Modes of Impact
supplier performance over time.
Ethics Human Rights Health & Safety Environment Management
& Labor Systems
Anti-bribery and corruption Freely chosen employment Worker protection Environmental Commitment and
Partners
n n n n n
n Fair competition n No child labor n Process safety authorizations and accountability
n Animal welfare n Legal treatment of young n Proper control of reporting n Legal and customer
n Data privacy and security workers hazardous substances n Management of waste and requirements
emissions Risk management
Financials
n Patient safety and access to n Non-discrimination n Emergency preparedness n
information n Fair treatment and response n Spills and releases n Documentation
n Avoidance and n Wages, benefits, and n Communication of hazard prevention n Training and competency
management of conflicts of working hours information n Resource efficiency n Continual improvement
interest Freedom of association Biosafety n Sustainable sourcing and Identification of concerns
Members
n n n
traceability Effective communication
n YO U C A N S E E
n Managing the release of THE FULL
pharmaceuticals into the PRINCIPLES
HERE
environment
The Year Ahead

Foundational commitments: Human Rights, Environmental Sustainability, Responsible Business
Growing Connections Principles 09
Growing Connections
Keeping the Principles Up to Date There is great value in harmonizing expectations

and requirements within the industry. It´s
important for all of us that a major industry like
the pharmaceutical industry takes responsibility
The Principles undergo a review process every three years and 2022 saw the launch of this process. This two-stage process is led for a sustainable future. The PSCI can have a central role
2022 at a Glance
by our Governance Committee and sees our Topic Teams as the main conduit of member feedback and technical knowledge. in pushing the industry in the right direction with the PSCI
The Stage 1 review invites feedback from the whole of the PSCI membership as well as external stakeholders who have expertise Principles defining the level of ambition.
in a relevant Principle area. A full draft of the proposed updates will be presented to the membership for approval in 2023.
We, The Swedish Pharmacy Association, see the review of
the PSCI Principles as important for Well Chosen, as PSCI
Principles are part of our criteria today. In the review and
update of the PSCI Principles, we see it as very important
Who we are
Stage 1 Stage 2
that the principles target identified high risks within the
industry and that follow up activities are conducted based
on these risks.
Gathering themes, ideas, broad changes from Detailed changes proposed in a full draft to be
Well Chosen (Välvald) is a joint sector initiative by Swedish
Board
Topic Teams and external stakeholders approved by the membership
pharmacies to promote responsible manufacturing of over-
2022 2022 the-counter medicines. The logo is to be found next to the
Principles
products sold in Swedish pharmacies that fulfill a set of
■ Members and external stakeholders invited to input ■ Written draft prepared criteria. One of the criteria is that the company must be a
■ Editorial team to review and clarify ■ written draft reviewed by Topic Teams, external member of PSCI and with that, follow the PSCI Principles.
stakeholders, and Editorial committee The company must comply with the PSCI Principles
Modes of Impact
within own operations and have written requirements
on suppliers to ensure compliance with the Principles, or
2023 the equivalent, in the supply chain for over-the-counter
medicines. We will continue to develop the criteria for Well
■ Final draft prepared, Editorial committee to approve Chosen and have the ambition of becoming the
Final draft goes to Membership for acceptance first sustainability label for pharmaceuticals.
Partners
■
2024 Lisa Stern Ödmark

Chief Strategist,
Financials
■ Updated Principles go into force The Swedish Pharmacy
Association
Members
The Year Ahead
A full draft of the proposed updates will be presented to the
membership for approval in 2023.
Growing Connections
Our Modes of Impact

2022 at a Glance
The PSCI seeks to build responsible supply chains for the whole of the
1 2 3
pharmaceutical and healthcare supply chain. We do this through three main
workstreams: audit, capability building, and collaborative projects.
Who we are
Board
Capability Building
Principles
We offer leading capability training at the global and regional
level using knowledge from the biggest companies in the pharma
and healthcare sector. Members and suppliers at any level of
maturity can access our tools, resources, and conferences to upskill
Modes of Impact
themselves and continuously improve.
Partners
Financials
Audit Program Collaborative Projects
Members
Our Audit Guidelines establish a standardized framework for a Our robust governance structure and sector coverage enables
range of audits for suppliers in the pharma and healthcare sector. us to develop collective responses and actions on specific topics
Our audits reflect the PSCI Principles and are carried out by such as high risk materials or the Musi River Revitalization
approved audit firms or PSCI member auditors. Via our shared audit Initiative.
The Year Ahead

platform, members and suppliers can gain efficiencies on audits and
we can track supplier maturity and improvement over time.
Growing Connections
Audit Guidance

Audit We have three main tools for our audit program which we continually improve over time to meet
member needs and industry best practice.
2022 at a Glance
WILL MOVE
ONLINE
IN 2023
Who we are
Audit Guidance Self-Assessment Audit Templates
Board
provides an overview of the PSCI Questionnaires help ensure that key sustainability
audit program for members and allow suppliers to assess their own topics are covered in an audit
Principles
auditors using the Templates performance in advance of an audit
Audit sharing is at the heart of the PSCI’s
Modes of Impact
mission and drives the core of our focus on
audit quality and sharing. The PSCI auditing
model and tools have become a recognized SAQ Online
industry framework for a range of audits Throughout 2022, we worked to move
for suppliers in the pharma and healthcare
Partners
our Self-Assessment Questionnaires
sector. Our audits reflect the PSCI Principles (SAQs) online. These questionnaires allow
and are carried out by approved audit firms suppliers to assess their own performance
Financials
in advance of an audit. Developing an
or qualified PSCI Member internal auditors. online version is not only more accessible
Via our shared audit platform, members and user friendly, but will also allow
and suppliers can gain efficiencies on audits members and suppliers to better track
Members
and we can track supplier maturity and progress over time. This easy-to-use
interface will provide a supplier with a
improvement over time. The Audit Committee simple way to provide key information in
oversees this workstream and is made up of advance of their audit, all in line with the
The Year Ahead

three Sub-Teams that drive our Audit Self- PSCI Audit Framework. We look forward to
Assessments and Guidance, Audit Sharing, launching the online version in 2023.
and Auditor Training projects.
Growing Connections Audit 12
Growing Connections
Planned Audit Pilot Dorota Wiacek effectively use them! The PSCI Principles have been implemented

INTERVIEW
Collectively, PSCI member companies visit or audit thousands of Supplier Sustainability Audit Program Manager, Roche into our Roche Supplier Code of Conduct as a reference.
suppliers every year on ethics, human rights & labor topics, and My journey within the PSCI started when I joined Roche in May The entire Roche Supplier Sustainability Assurance Visit (SSAV)
health, safety, and environmental performance. The PSCI’s audit 2022 as a Supplier Sustainability Audit Program Manager. From Program that I manage is based on the PSCI protocol. We use
workstream seeks to promote efficiency for both members and almost the beginning of my professional career, I have been available templates and guidelines, we cooperate within the SSAV
2022 at a Glance
suppliers by sharing audit reports between members, helping to dealing with management systems and internal audits. At Roche Program with a PSCI approved audit service provider – one from
ensure that auditing resources are focused where they’re needed. I got involved in the Sustainability Supplier Assessment Program the list available on the PSCI website.
and I immediately knew that by being a member of PSCI and at
To continue to promote efficiency, we worked on a planned audit the same time joining the Audit Committee, I would be able to Thanks to the PSCI platform, suppliers audited by us can share
pilot where members were invited to share their audit plans for effectively contribute to the framework of audit standards and the results obtained during the audit by signing the Data Sharing
the next 12 to 24 months. The PSCI Secretariat is consolidating also make sure that the whole PSCI Audit Program gets better and Agreement (DSA) consent. Every year there are more and more
Who we are
these plans, identifying any common suppliers listed, and re- more effective every year. such suppliers and we are very happy about this. It allows
distributing the suppliers amongst members to eliminate any us – member companies - to fully utilize the potential of PSCI
overlap. At the end of this process, those suppliers that have The work of the Audit Committee is not only to ensure that the cooperation and reduce the number and cost of the audits, and for
been commonly identified will be audited only once and the final overall PSCI Audit Program assumptions are consistent and our suppliers it is a great opportunity to confirm the effectiveness
meet the ever-changing requirements of a volatility, uncertainty,
Board
reports will be shared amongst the participating members. of their internal processes and share the results of the assessment
This project will continue into 2023 with the audits taking place, complexity and ambiguity (VUCA) world, it is also to select the gained within the audit.
thus reducing the burden on suppliers and promoting the true right partners to implement it together with our members and
Principles
benefits of audit sharing. audit providers, for whom the values and assumptions of PSCI are What is the importance of the PSCI Audit Program and
equally important. how do you think this will change in the future?
801
I believe that the amazing advantage and strength of this Audit
Audits on the PSCI platform What value do you see in the PSCI’s shared Audit Program? Program is that it responds to the needs of the specificity of the
Modes of Impact
What needs to be emphasized at the beginning is the fact that the pharma industry.
PSCI Audit Program is a tool developed as part of the continuous
and active cooperation of all PSCI members. The PSCI Audit The various Committees and Topic Teams and Sub-Teams are
Program not only harmonizes the approach to supplier audits working on continuously updating the materials we provide and
196
within our supply chain, but also, and perhaps above all, is used we work together on how we approach the due diligence of our
Audits uploaded to the PSCI platform in 2022 supply chain. This allows us to keep up to date and also to reflect
*
as a standard that is tailored to the requirements of the pharma
Partners
Key Audit Stats
companies and is responsive to the specifics of the industry. on how fast the world and the laws around us are changing. This
shows that we will not stop in constantly improving what we have.
The PSCI Audit Program provides an opportunity for all PSCI
members to benefit from a standardized approach to suppliers’ We will look for more and more new topics that are and will be
Financials
audits, as well as for our suppliers to share their audit results and important from the perspective of the pharma industry, we will
124
Audits shared thus promote their business model, minimize the number of probably establish new partnerships, new Topic Teams etc. -
audits, and reduce associated costs. nevertheless, the fact that the Audit Program will be developed is
certain, as we see its advantages and benefits every day.
Members
It is also important to emphasize the fact that thanks to As an example, we are continuing to develop our shared audit
this program, as well as PSCI's Principles and activities as plan – this is the first step to harmonize and manage the suppliers’
a whole, we can build awareness in the area of sustainable
*includes remote audits
5500+
audits even better from the global PSCI perspective. We already
development including key human rights issues. see that there is a possibility to plan, coordinate, and make one
The Year Ahead

Audits downloaded
What benefits do you see in the PSCI’s approach audit (coordinated by the PSCI Secretariat) instead of three or
to audits? even more done by each member company by itself. Let’s use this
It would be a huge mistake not to take advantage of the ready- opportunity and synchronize our audits even better. We will all
made Principles, standards, templates, and guidelines on how to benefit from this.
Growing Connections Audit 13
Growing Connections
Auditor Training Audit Findings Analysis

PSCI Audits are carried out by approved audit firms or qualified PSCI Member internal
auditors. Our Auditor Training Sub-Team qualifies and approves third-party audit firms Every year, we analyze the findings from audits on the PSCI platform under the relevant topic areas of the PSCI
and organizes our ongoing engagement and training with these firms. Overall, 18 firms are Principles. This gives us visibility over how audit findings are changing over time and our impact on the industry.
approved to carry out PSCI audits. Health & Safety continues to be the area with most findings, reflecting the most common areas of concern for
2022 at a Glance
members (almost all audits include Health & Safety, but not all include other topics like Labor and Ethics).
Courtney Soulsby Global Director, Healthcare sector, BSI
1955
INTERVIEW
Why did BSI decide to partner with the PSCI on audits? 2022 audit findings Total number of audit
BSI has been an approved audit firm since the early start of the PSCI supplier audit program. Change in share of total 2022 (solid) vs 2021 (tint). findings in 2022
BSI continues to support the PSCI because of the recognition that a journey towards supplier
Who we are
improvements is one that requires dedication and commitment over time. As a National 0 250 500 750 1000
Standards Body and an organization with deep consultancy and supply chain audit expertise,
BSI was keen to participate in the PSCI program given the advantages of industry alignment Ethics 29
on audit criteria and the engagement approach with the suppliers.
Board
BSI has a long-standing relationship with the healthcare industry in conducting assessments
against regulatory and industry requirements, given on our role as a Notified Body assessing
Human
Rights 189
on behalf of the regulators for the medical device sector. We view the PSCI’s focus on driving & Labor
Principles
consistency and improvement across the global pharmaceutical supply chain as a match
between our shared missions. BSI is proud to work with the PSCI – who have managed to Health 1003
form and execute a strategy in raising the bar for pharmaceutical industry Ethics, Labor & & Safety
Modes of Impact
Human Rights, Health & Safety, Environment, and Management Systems.
Why do you think collaboration on audits is important? Environment 396
Ecosystem-wide consensus on best practice criteria or requirements is a shared vision
between BSI and the PSCI, as it has been known to lead to more efficient and effective
adoption of such requirements across the industry. So instead of focusing efforts on “how Management 338
Partners
do we identify or interpret the requirements,” the pharmaceutical industry can instead focus Systems
on how to improve their practices against the set of requirements and strive for long-term
improvement, rather than just passing an audit. This type of audit collaboration takes These include HSE, Labor and Ethics audits, HSE only audits, and Labor and Ethics only audits.
the industry on an improvement journey together, against a shared set of best
Financials
practices, between pharmaceutical customers and their supply chains, rather than
hierarchal and historical customer-supplier transactional relationships. Main three Audit Findings topics Principal Audit Countries*
1
What value do you find in the PSCI Audit Program and how do you Occupational Health and 200 196
Members
think it benefits the pharmaceutical industry? Industrial Hygiene
The value of the PSCI audit program is found in the aligned expectations for Health & Safety 140
2
suppliers – which leads to suppliers being able to clearly and holistically 100
Hazardous Substances
embed safety, environmental, and ethical best practices into their operations.
The Year Ahead

Environmental Risk Management 73
Through our audits, BSI is seeing a wide range of audit findings and
Environment
3
collaborative improvement opportunities across the core categories of
0
requirements, but there can be some data and trending of common Wages, Benefits, and Working Hours US INDIA CHINA
findings that can also be a value in the PSCI program. Human Rights & Labor
*Cumulative number of audits on the platform 2015-2022
Growing Connections
A Maturity Model for
Capability

Responsible Supply Chain Practices
To provide a structured learning path for suppliers to understand the maturity of their practices, the PSCI
2022 at a Glance
Building provides a Maturity Model for supplier learning and development. Using the topic areas of the PSCI Principles
as a framework, suppliers can use the model to understand where they meet the expectations for responsible
practice set by PSCI member companies, as well as access resources to evolve their practices over time.
Our expert Topic Teams lead the creation of this content and in 2023 they will continue to develop resources at
the ‘leading’ end of the model. In early 2023, a Maturity Model app was also launched to enable suppliers to
Who we are
have the model and resources at their fingertips and embed it into their day-to-day practices.
Leading
Board
Leading suppliers are as likely to be sharing their
expertise as they are to be learning; a network
of experts, working in partnership.
Principles
Implementing
Modes of Impact
Suppliers have established good systems for key
risks and are now aiming for excellence. Case
studies inspire them, specialist content fills in
Level of Maturity
their knowledge gaps. MOBILE
APP NOW
LIVE!
Developing
One of the most sustainable ways to drive responsible
Partners
As suppliers develop their program, they will
practices in the pharmaceutical and healthcare sector is draw on these tools and techniques, including
audit frameworks, risk assessment tools, and
to enable suppliers to improve themselves. Our Supplier “how to” guides.
Capability Building workstream seeks for the PSCI to become
Financials
a driving force for learning and development for suppliers Starting out
to the industry. We provide free, expert-led conferences, Primers will demonstrate the
minimum standards, enable suppliers
webinars, and online tools linked to our Maturity Model to
Members
to prepare for their journey, and raise
Foundational
enable members and suppliers to develop their responsible awareness of the key topics.
Specialized
Techniques
“Primers”
supply chain practices in line with the PSCI Principles.
Content
Tools &
Access
Expert
The Year Ahead

This work is led by the Capability Committee with expert input
from our Topic Teams and Regional Sub-Teams for China,
India, and Latin America.
Tools for Learning LEVEL 1 LEVEL 2 LEVEL 3 LEVEL 4
Growing Connections Capability Building 15
Growing Connections
Supporting Supplier Learning and Development

The Maturity Models
are a great step ahead In addition to the text-based content accessible in our Maturity Model, we deliver a range of dynamic learning
for the PSCI. They allow opportunities for pharmaceutical and healthcare suppliers. These include our regional Sustainability Conferences in
all suppliers to assess
2022 at a Glance
China and India and our expert webinar program.
themselves against the requirements
of the PSCI Principles and to identify
9
gaps and areas for improvement. Supplier Conferences Total conference days
This allows the suppliers to be much
Our most popular learning and development offering is our conferences for pharma
more targeted in their development.
and healthcare suppliers. Our multi-day conferences in China and India provide 2,100+
Who we are
Through our models and attendees with an introduction to key sustainability topics like Ethics, Human Rights
complementary learning plans,
I believe we will see an acceleration of
& Labor, and Decarbonization delivered by specialists from PSCI member companies.
These conferences are enhanced by the knowledge and insights of our local China and
half-days
2100+
capabilities over the next few years. India Regional Sub-Teams, as well as our audit firms and local association partners on Total conference attendees
Board
This not only has benefits for the the ground. We were delighted to return to our first in-person conference since 2019 at
suppliers to track their own progress Novartis India and look forward to hosting more in-person conferences in the future.
and learning, but also those in our In 2023, we will deliver a virtual conference aimed at suppliers in North America, the EU,
Principles
Key Stats
member companies to support their and Latin America.
own knowledge on a shared
3100+
path of continuous improvement.
Number of capability interactions with suppliers
Modes of Impact
China India
Daniel Rehm
Lead HSE Advisor, Elanco Highly rated sessions
1 New labor codes 1 Hazardous Area
Classification
Partners
1547
Waste Minimization Number of supplier users registered on our
2
Engaging Suppliers online platform, The Link
2
- application of flow to Reduce Scope 3
chemistry Emissions Towards Net
Financials
Zero
3 Industrial Hygiene
Modelling Ban on Identified
3 Single Use Plastic -
Members
4 GHG Emissions
Accounting
The Whats, Whys and
Hows
We enjoyed a great PSCI China Supplier
conference last week! I’ve never seen
The Year Ahead

such a successful conference before.
My colleagues in the EU & US
also spoke highly of the event.
Victor Ren Novartis
Growing Connections
Expert Webinar Program Catherine Zhang development of local partnerships and

INTERVIEW
Regional HSE Manager, Bayer broader networking for the PSCI.
Led by our Topic Team members, our monthly webinar program
provides attendees with foundational knowledge sessions on What are you most happy about the What excites you about the team’s
topics like product stewardship, as well as the latest updates on China Regional Team achieving in work in 2023?
areas such as chemical legislation. These webinars are delivered 2022? In 2023, I am very excited by our plans to
2022 at a Glance
by specialists from PSCI member companies as well as key The year of 2022 was a very challenging generate more impact through various
partners such as International Safety Systems (ISS) and Safebridge. year for China, with the continuing impact activities and events, especially the
of Covid-19 on the economy and especially upcoming PSCI maturity models webinars
16
the supply chain. I am deeply impressed dedicated to local suppliers and the face-to-
Total number of webinars
by the numerous successes that the China face conference in the autumn. Such events
team has achieved and how we have will provide value-added solutions for
Who we are
CHINA IS ONE OF THE
overcome the challenges – the team has BIGGEST PHARMACEUTICAL suppliers to tackle challenges identified in
Key Stats
S U P P LY H U BS
supported the organization of the Supplier audits and achieve improvement over time.
conference that attracted close to 2,000
996
attendees from 446 sites. The supplier
Board
Total number of webinar attendees conference was a truly joint effort – our
As a result, the event

member experts volunteered to prepare
the training materials, experienced
Principles
made a huge impact
consultants joined us to share experience,
and most importantly, the membership
towards helping
made great efforts to engage our suppliers
Modes of Impact
to share their good practices and first-
suppliers establish
By attendees: hand knowledge. As a result, the event
made a huge impact towards helping
higher standards in
suppliers establish higher standards
1 Particulate Containment Verification in their HSE practices and sustainable
their HSE practices

with Surrogate Monitoring development in general.
Partners
Top 5 Webinars
What is the benefit of the China
2 Lab Safety
team on the ground and what do
you support? and sustainable
Financials
China is one of the biggest
development in
3
pharmaceutical supply hubs, core to
Safety Integrity Level Concept the world’s pharmaceutical supply
chain. Many of our China team general.
Members
members directly lead the PSCI audits
4 Human Rights Due Diligence
in Practice
conducted on the local supplier
sites, and therefore, have practical
Catherine Zhang
Bayer
The Year Ahead

understanding of what challenges the
5 An Introduction to the
Maturity Models
Chinese suppliers are facing and how
we can continuously help to improve
their performance on the sustainability
front. Our team also supports the
Growing Connections
Sivala Ravi Kiran I had speaking at the The sharing

PSCI India Supplier
INTERVIEW
Head of Corporate EHS and Sustainability, Biocon of experiences
Why does Biocon engage with the PSCI?

Conference as
a personal objective.
and challenges
faced in
The
Biocon engages with the PSCI to improve our EHS and
Sustainability performance. We adhere to the PSCI
pharmaceuticals
Pharmaceutical
2022 at a Glance
helps us to
Principles for Responsible Supply Chain Management
and influence our suppliers by conducting capacity
understand and brainstorm over common solutions.
This makes PSCI conferences more relevant.
Supply Chain
building trainings. The best thing the PSCI platform
provides is best practices across the different scale The technical sessions are organized in such a way Initiative supports
our industry
of companies in pharmaceutical industry. The PSCI that most professionals have been able to use their
learnings at work. Non-PSCI members are also given
Who we are
network guides us towards making our business and
to initiate best
supply chain responsive in the future to issues around opportunity to present their experiences on the same
human rights, environment, health & safety, ethics forum. The open nature of such conferences shows
practices in
and management systems. Both our organization the commitment of PSCI to bring inclusive impact in
and employees have regularly benefitted from the pharmaceutical industry.
Board
resources and network provided by the PSCI. We have
improved our scores in external sustainability rating What value do you think PSCI adds to your
company and the industry as a whole?
sustainability.
Principles
platforms as a result of our engagement with the PSCI.
The PSCI is the frontrunner guidance platform for all
What excites most you about PSCI? major pharmaceutical companies to run their business Sivala Ravi Kiran
The PSCI hosts conferences which is the most exciting responsibly. This industry has several challenges which Biocon
Modes of Impact
initiative as it provides us the networking opportunity we have to balance to serve patients first and fast.
with best professionals in India and beyond. The PSCI platform unites the organizations and their
supply chain to follow the Principles along with best
practices.
BIOCON ENGAGES WITH THE PSCI TO IMPROV E
E H S A N D S U S TA I N A B I L I T Y P E R F O R M A N C E At Biocon, we have benefitted by getting impactful
Partners
feedback from the resources offered by the PSCI.
We undergo comprehensive PSCI EHS Audits by our
customers which helps in continuous improvement of
our operations. Our other customers in this network
Financials
can easily access audit report on the PSCI’s shared
audit platform and save cost and time by avoiding
duplication. The PSCI’s capacity building trainings,
webinars, and industry accepted content on EHS
Members
& Sustainability develop our employees’ skills
and know-how of worldwide best practices. The
combination of e-tools, guidance, and resources
The Year Ahead

makes the PSCI a one stop solution for not
only organizations, but also for individuals
associated with Pharma industry.
Growing Connections
Our reach, cooperative nature, and
India Wastewater Lab
Projects
Collaborative

robust governance structure enables
our members to come together Pharmaceuticals in the environment (PiE) are an important
to develop collective responses to issue and the subject of increasing focus by the media,
governments, NGOs, and the wider public. For a number of
2022 at a Glance
emerging topics or work on special
years, the PSCI has been engaged in projects and campaigns
projects. These range from flash related to this issue, specifically the Musi River Revitalization
member calls on geopolitical issues Initiative which seeks to support manufacturers in the local
to developing position statements area to improve their wastewater treatment processes.
As a next step in the project, the India Sub-Team launched a
on the UN Guiding Principles for
Who we are
project in 2022 to support the development of wastewater
Business and Human Rights. In testing capabilities in India. Despite the large presence of the
addition to our core focus on audit pharmaceutical manufacturing on the Indian sub-continent,
sharing and supplier development, wastewater treatment analyses are minimal and samples
for testing are consistently sent to laboratories in the US or
our members see the PSCI as a
Board
Europe. Through an in-depth analysis and identification of
valuable platform to tackle industry- laboratories within the country, the India Sub-Team aims to THE INDIA SUB-TEAM AIMS TO
level issues together.
Principles
support the development of wastewater treatment testing SUPPORT THE DEVELOPMENT OF
W A S T E W AT E R T R E AT M E N T T E S T I N G
for PiE and build local capacity.
Modes of Impact
Legislation Tracker
The regulatory landscape related to responsible
Partners
supply chain management continues to evolve rapidly
and is moving steadfastly towards mandatory due
diligence reporting. In order to stay on top of emerging
regulation at both the national and regional level,
Financials
PSCI members came together in 2022 to develop a
Legislation Tracker. This dynamic tool allows members
to see a breakdown of key pieces of legislation such
as the German Supply Chain Act or the EU Corporate
Members
Sustainability Reporting Directive and identify where
and how they intersect with the PSCI Principles.
The tracker also guides users towards relevant PSCI
The Year Ahead

resources such as briefing notes, guidance, and
audit tools for the related topic area. The tool will be
launched and updated with new legislation in 2023.
Growing Connections
Partners
Silvia Forroova The PSCI's membership base and

CPHI’s exhibitors include some of the
TESTIMONIAL
Partnerships & Sustainability, Informa
largest pharmaceutical companies
The PSCI’s work and initiatives are extremely in the world, and these companies’
valuable for the pharma industry as they promote impact becomes our impact multiplier within
2022 at a Glance
responsible supply chain management, which can the industry thus increasing information spread,
We enjoy a range of collaborations and partnerships with lead to improved supplier performance, increased access, and new opportunities for learning
organizations that share our vision and help us achieve our transparency, risk mitigation, and leadership in from organizations with
strategic objectives. sustainability and social responsibility. By adhering experience in this field.
to the PSCI Principles, pharmaceutical companies
can ensure that their suppliers operate responsibly Our partnership with the PSCI is an exciting one with
Who we are
and sustainably. As the pharma industry faces content in the pipeline covering relevant challenges
increasing scrutiny over its environmental impact and and solutions which are important considerations for
ethical practices, collaborating with the PSCI helps the pharma industry.
demonstrate CPHI's commitment to sustainability and As we learn and shape our understanding of what
Board
responsible business practices. new issues and questions the industry is facing, we
At CPHI, it is our mission to embed sustainability solidify our commitment to aiding our industry’s work
Arcadis ACS Green Chemistry Institute in everything we do and help our customers and and development for a better, more sustainable,
Principles
specialist markets to do the same - from our transparent and greener future.
operations and business practices to the knowledge
and information we provide to our audiences and
Modes of Impact
communities, we are committed to making a positive
impact via inspiration, education, and enablement.
Through connecting stakeholders, championing best
practice, and curating expert content, our aim is to
help advance innovation and solutions-led actions to
tackle the challenges in our sector.
Partners
The PSCI needs to be always in close
Our collaboration with the PSCI helps raise contact to our suppliers in order to
The Anti-Microbial Resistance Chemleg
awareness and encourages the adoption promote responsible supply chain
(AMR) Industry Alliance
of responsible supply chain management management and better business conditions
Financials
practices among our exhibitors and event across our industry. CPHI Worldwide
attendees. It also enhances industry represents the biggest gathering for the
networking and collaboration - it pharmaceutical supply chain and key supply
provides our exhibitors and attendees chain partners. We were delighted to be
Members
with a valuable opportunity to the Official Sustainability Partner for CPHI
network and collaborate with other Worldwide and exhibit on the show floor
industry stakeholders who share a alongside our members and partners.
The Year Ahead

commitment to responsible supply It was a dream come true!
chain management. This can lead
China Pharmaceutical Enterprises CPhI to increased knowledge sharing, Enric Bosch
Association (CPEA) best practice dissemination, and Global Third Party Chemicals Manager,
collaborative problem-solving. Boehringer Ingelheim
Growing Connections Partners 20
Growing Connections

2022 at a Glance
DEKRA EFPIA Green ChemisTree Foundation ILO Global Business Network Institute of Public and
on Forced Labour Environmental Affairs (IPE)
Who we are
Board
International Safety Systems
Principles
Karnataka Drugs & Pharma PEG ACS Pharmaceutical R&D-based Pharmaceutical
(ISS) Manufactures Association (KDPMA) Roundtable (GCIPR) Association Committee (RDPAC)
Modes of Impact
Partners
SafeBridge Consultants Swedish Pharmacy Association Verisk Maplecroft
- Apoteksföreningen
Financials
Members
By adhering to the PSCI Principles, pharmaceutical companies can
ensure that their suppliers operate responsibly and sustainably.
The Year Ahead

Silvia Forroova
Partnerships & Sustainability, Informa
Growing Connections
Financials
The PSCI is funded by members paying annual Expenditure in 2022 was $1,105,470, which included

subscriptions based on their size and level of our first set of in-person member meetings and
commitment. Associate Members pay a financial supplier conferences since 2019, as well as a new fund
premium reflecting the greater nonfinancial for member-led special projects.
contributions made by Full Members. In 2023, a new
The PSCI has not-for-profit status, allowing it to be
2022 at a Glance
fee structure will come into force, creating a new tier
mission-driven and representative of its members.
All the financial data on this page is
for companies with annual revenue of $30b.
Unspent membership fees are retained as reserves to
Revenues in 2022 were $1,514,924, a significant be invested into projects and programs in future years.
taken from the PSCI financial statements increase from 2021 driven by growth in Associate
members from 22 to 40 by the end of 2022.
The PSCI Board comprises seven Directors, including
for the years ended 31st December 2020,

a Treasurer, all of whom are answerable to members
Who we are
Expenditure is incurred in the organization and at two face-to-face meetings each year, including
2021, and 2022.

management of the PSCI and on projects and events the PSCI’s Annual General Meeting. The finances are
to promote responsible supply chain practices. overseen by the PSCI’s Treasurer with support from
our independent accountants, BDO.
Board
Principles
Year ending 31st December Year ending 31st December
2020 2021 2022 2020 2021 2022
$810,900 $969,449 $1,514,924 $979,000 $944,505 $1,105,470
Modes of Impact
Total revenue from membership fees
+18.5 +56% -6% +17%
Partners
Total operating expenses
Financials
$1m $1m
Members
The Year Ahead
Growing Connections
Our Members

The PSCI has two levels of membership: Full and Associate.
Full membership is designed for companies that wish to actively participate in the PSCI and take a
leadership role by sharing audits and participating in our Committees, Topic Teams, and Regional Sub-
2022 at a Glance
Teams. Associate membership is tailored for companies that are at an earlier stage in their responsible
74 Members Worldwide in 2022 supply chain program and wish to take a less active role. Associate membership is a pathway to Full
membership and it’s our hope that members mature and graduate in time with our support.
34 Full Members 40 Associate Members
Who we are
Board
Principles
Modes of Impact
Partners
Financials
Members
The Year Ahead
When you join the PSCI you join a community committed to promoting
responsible supply chains and better business conduct.
Growing Connections Members 23
Growing Connections
Our Members
n Associate Members

40
n Full Members
34
29
25
19
2022 at a Glance
16
74 Members Worldwide in 2022 0

9
2015 2018 2020 2022
34 Full Members 40 Associate Members
Who we are
Board
Principles
Modes of Impact
Partners
Financials
Members
The Year Ahead
Growing Connections
The Year These three
In the year ahead we plan to streamline

and improve our online learning offer and
overhaul the platform. This will make it
developments – and
Ahead
easier to navigate, more rewarding to use,
and accommodate the growth in users.
the many more that
2022 at a Glance
These three developments – and the
many more that you will have read about
in the preceding pages – make 2023 a
you will have read
great year to update our strategy. It will
also be our 10-year anniversary as an
about in the preceding
Ingrid Vande Velde / 2023 PSCI Chair incorporated organization. Our existing pages – make 2023
Who we are
SENIOR MANAGER EH&S EXTERNAL SUPPLY EMEA AND ASIA PACIFIC, JOHNSON & JOHNSON three-year strategy is nearly complete,
concluding at the end of December. I look
forward to leading my Board colleagues
a great year to
and Leadership team in a review and update our strategy.
Board
development of the next three-year plan,
taking us all the way to the end of 2026. It will also be our 10-
I take the chair of the PSCI with the
Principles
My own journey with the PSCI began in
2014, and since then I have helped plan year anniversary
collaboration in great health. and lead our China and India conferences,
co-led our Capability Building Committee, as an incorporated
Modes of Impact
Membership, finances, and organization
are all growing and all our challenges are
As Vicki said in her introduction, we are
working on a new approach to recognize
and served on the Board. Now it is a great
pleasure to take the chair from Vicki to organization.
positive ones. and partner with supplier companies. whom I would like to record my thanks and
It is our intention that committed appreciation for all her work. It has been
First on our agenda for 2023 is to embed
companies across the supply chain should rewarding to watch the PSCI community Ingrid Vande Velde
the revision of PSCI Principles. These
Partners
be able to have their engagement and grow and connect over that time. But 2023 PSCI Chair
Principles are the bedrock of all we do and the biggest pleasure during that period is
achievements recognized. Once they have
we update them on a three-year rolling seeing the industry change, environmental
transparently shared audits, used our
cycle using feedback from members, and social practices and outcomes steadily
Maturity Model tools, and committed to
Financials
advisors, and stakeholders. I am very improve, and knowing that we have
a journey of improvement, we hope to
grateful for all the consideration and played our own important part in that
be able to reciprocate with a more formal
inputs from colleagues and supporters transformation.
partnership, bringing those supplier
(particularly those who worked with me
Members
partners closer to our decision making
on the Principles Editorial Panel). The
and planning and publicly rewarding their Roadmap
2023
new revision places management and
efforts.
governance as the foundation of all the
The Year Ahead

Principles, emphasizes human rights As we grow, The Link - the PSCI’s website Recognize Streamline and
and climate change, and broadens our and learning platform – increasingly forms Embed the
and partner improve The Link - the
approach to safety and risk. I look forward the global point of connection where revision of PSCI
with supplier PSCI’s website and
to launching the new version at our Spring members and suppliers stay up to date, Principles
companies learning platform
Meeting. share audits, and access our resources.
Start the journey to
a more sustainable future
pscinitiative.org
+44 (0) 7587 076 059 (PSCI Secretariat)
info@pscinitiative.org
@PSCInitiative
PSCI
Subscribe to our newsletter
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For more information about the PSCI please contact:

PSCI Secretariat
Carnstone Partners Limited
Third floor
26 Farringdon Street
Carnstone Partners Ltd is an independent consultancy specializing in corporate
London EC4A 4AB
responsibility and sustainability with a long track record in running industry groups.
info@pscinitiative.org
carnstone.com @Carnstone @carnstone_partners carnstone
+44 (0) 7587 076 059
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Annual Report

Board and Governance 06

The Year Ahead