Beyond Green Operationalizing Sustainability in a Changing

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					   Beyond Green:
   Operationalizing Sustainability in a
   Changing Environment


                 Veronica Croucher
       Director, Group Sustainability Projects
                      Peter Lalli
Senior Director, Business Planning and Sustainability
  Sanofi-aventis


2008 sales: Euro 27,568 million
No. 4 Worldwide
No. 1 in Europe
Present in double-digit growth in emerging markets
Present in more than 100 countries
Almost 100,000 employees




                                                     2
  Sanofi-aventis is transforming itself


The ambition of sanofi-aventis is to become a diversified
global leader in healthcare. The Group strategy is based on
three key themes to reach these objectives and deliver
sustainable growth
    Increasing innovation in Research and Development
    Adapting our structures to meet the challenges of the future
    Exploring external growth opportunities




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Sanofi-aventis in the U.S.



Pharma Ops Sales
     Total - $17 Billion
     (incl. Plavix/Avapro/Actonel)
     Consolidated - $10.2 Billion
Pharma Ops Locations
     Corporate Headquarters
     5 Regional Hub Offices




                                     4
Sanofi-aventis U.S. Industry Rank




                  5
       Market Dynamics

           Status / Dynamics
                Passes the $300B mark (July 2008 MAT $303B)
                Growth continues to decline

         4.0%
4.0%                                           3.0%
                                                             2.7%
3.5%
                                               2.5%
3.0%
                                  2.3%         2.0%
2.5%
                     2.0%
2.0%                                           1.5%
                                                                                 1.2%
1.5%
                                               1.0%
1.0%
                                               0.5%
0.5%                                                                                              0.1%
0.0%                                           0.0%
        2007        2008     MAT Feb 2009                   2007               2008          MAT Feb 2009*



           Market Dollar Growth YTD                         Market RX Growth YTD


                                                                                                             6
                                            * Will be further impacted by IMS restatements
         Generic Impact
         Accounts for 65% of Total Rx Volume

                                                                         % Total prescriptions dispensed
100%       6%     6%    7%    8%    8%      9% 10%
                                                   14% 14% 14%
 90%       8%     9%    9%    9% 10% 10%
                                         10%
 80%                                                    10% 11% 11% 38% 38% 40%
                                                                                43% 46%
                                                                                                  50% 54%
 70%                                                                                                         60%
                                                                                                                   64% 65%

 60%                                                                  11% 11%
                                                                                11%
                                                                                      11%
 50%                                                                                        11%
                                                                                                  10%
           86% 85% 84% 83% 83%                                                                          9%
 40%                           81% 80%
                                                        76% 75% 74%
                                                                                                             9%
                                                                                                                   9%
 30%                                                                                                                    9%
                                                                      51% 51% 49%
                                                                                  46% 44%
 20%                                                                                      40% 37%
                                                                                                             31%
                                                                                                                   27% 26%
 10%
   0%
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      20

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                                                               b




                                                                          b
                                                            Fe




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                                                        M




                                                                 M
Source: IMS NSP ending Feb 2009
Source: IMS NPA ending Feb 2009
                                            Brands   Branded generic s   Unbranded generic s
                                                                                                                             7
 The Environment…

A changing regulatory environment in the US
Patent laws are evolving while current patents are challenged
The current marketing approaches have reached saturation or
diminishing return points in many markets
Increasing emphasis on demonstrated health outcomes (Gov’t & Payors)
Emergence of the healthcare consumer which is far different than
the healthcare patient

      The government now is the largest payor
                for pharmaceuticals


                                                                   8
        Changing Roles in the Marketplace

                                                Old Model
                                                                     Employees
                           PCPs
           Specialists                                                            Patients/
                                                                                 Consumers




                                                  Promo
     Decision Makers                               Mix                                 Influencers
                                                                            Recommending parties
         Public payors
      (eg, Medicare, State)
                                                                                   Pharmacy/
Third-party payors       Hospital                                              specialty pharmacy
                                                         Patient advocacy
                                                           associations             Professional physician
    Wholesalers/            Assisted-living/                                             associations
                                                              Employers
distribution channels      senior centers/LTC
                                                                  KOLs                Public health and policy

                                                New Model
                                                                                                    9
 Our Stakeholders

                             Medically          Rating Agencies
    Investor                Underserved
     Groups                                           Industry
                                                        Peers
Employees       NGOs                        Government
                                             Agencies

 Patients/Caregivers                                Scientific
                                                   Community
     Healthcare
    Professionals                                 Suppliers and
                                                   Contractors
   Managed Care                   Communities
   Organizations                                   Media
                       Shareholders

                             10
  Transforming to meet the challenge…

New Business Model requires a mindset shift on how we define our value
proposition and how we approach our business
     Expanding the definition of value – from product to solution
        Improving patient health outcomes
        Patients, Physicians, Payors
     Quality of interaction with customers
        When and in format the customer wants
        More evidence based
     Resource deployment and structure
        Simplify organizational structure by reducing layers and increasing spans of control
        Flexible deployment of resources
        Leverage full U.S. presence
     Being the employer, neighbor and investment of choice
        Development opportunities for tomorrow…while meeting the needs of today
        Community activities and support in the areas where we operate
        Growing through innovation…


                                                                                           11
Embracing sustainability practices used to be
 Embracing sustainability practices is now
           “the right thing to to do”
        “the necessary thing do”




                                                12
    Sustainability at sanofi-aventis
    What does it mean to us?
•Sanofi-aventis acts in an ethical and responsible manner to be a true healthcare partner,
today and tomorrow.
•Our approach places the patient at the center of our business conduct in conjunction
with our social and corporate responsibilities as well as our environmental commitment.




•This vision of sustainability is an integral part of our global strategy, designed to
respond to patients needs and expectations by ensuring a balance between access to
healthcare, innovation, respect for intellectual property rights and sustainability of
healthcare systems.
•It only makes sense when it is fully integrated in the Group’s strategy and culture, in the
prospect of the long-term performance improvement.

                                           13
The sanofi-aventis pillars
Translating the triple bottom line…



                                        Planet 21
          Environment



 Social                 Economic                Ethics 21




                                   Patient 21               People 21




                        14
   Sustainability at sanofi-aventis
   Focus
               •Access to healthcare (access to medicines and vaccines)
               •Innovation and respect for intellectual property rights
 Patient 21    •Outreach and support for patients, patient advocacy groups and the general
               public
               •Future of healthcare systems
               •Ensuring the quality of our products (counterfeit drugs, parallel trade, etc.)


                                             •Social dialogue
                                             •Promoting equal opportunity and preventing discrimination
                                             •Commitment to health and safety
                          People 21          •Career management and skill development
                                             •Social protection
                                             •Balancing work and personal life
                                             •Local presence and a commitment to local communities
                                             •Humanitarian and solidarity programs
              •Codes of conduct
              •Corporate governance
              •Ethics in R&D (clinical trials, use of laboratory animals, stem
              cell research, etc.)
Ethics 21     •Fighting corruption
              •Human rights                                                                •Managing natural resources
              •Relationships with suppliers and contractors                                •Respecting biodiversity
                                                                             Planet 21
              •Responsible marketing                                                       •Climate change
              •Risk management                                                             •Environmental health



                                                    15
Sustainability Hot Topics


             Innovation
                                Climate Change
      Corruption and Bribery

                                     Bioethics
    Drug Counterfeiting


  Promotional Practices        Animal Welfare


                          16
Rating Agencies & Indices




                       Pacific Sustainability Index




                 17
   Other Partnerships

•Sanofi-aventis is also a member of a number of other organizations
promoting sustainability:
               CSR Europe is the leading European business network for corporate social
               responsibility with ~70 multinational corporations and 25 national partner
               organizations as members.

               Sanofi-aventis a founding member of the EDH initiative (Entreprises pour
               les Droits de l’Homme). The “Businesses for Human Rights” initiative

 EDH
               comprises eight members, all French-speaking international groups, and
               was created following exchange with organizations such as Business
               Leaders Initiative on Human Rights (BLIHR) and the French section of
               Amnesty
               International.

               Business for Social Responsibility works with its global network of more
               than 250 member companies to develop sustainable business strategies and
               solutions through consulting, research, and cross-sector collaboration.



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U.S. Sustainability Efforts
  U.S. Sustainability



•US Sustainability Core Council in place
•Sustainability strategy in development
•Strategy will enhance/formalize existing practices
   • Sustainability  is the way we do business – NOT a new program
   • Existing initiatives with little or no support can be brought under the
     sustainability umbrella




                                    20
      U.S. Sustainability Core Council

                                         Overall Leads
Pete Lalli                                       Veronica Croucher
Business Planning and Sustainability             Group Sustainability

                                   Executive Core Council
VP                                               VP
Business Information and Support                 Oncology BU

VP                                               VP
Stakeholders Office (R&D)                        Human Resources

VP                                               VP
Market Access and Business Development           Policy and Govt. Relations (sanofi pasteur)

VP                                               VP
U.S. Corporate Affairs                           CFO
VP                                               AVP
General Counsel                                  Site Services (sanofi pasteur)


                                            21
     sanofi-aventis Sustainability
     U.S. Organization Focus Areas

Health Promotion: Patient 21     Patient 21




Social Engagement
                                People 21


Health Safety Environment

                                 Planet 21

Purchasing & Supply Chain



Conducting Business Ethically    Ethics 21


                                  22
Health Promotion: Patient 21
Sub-Team

                Function                           Scope

Marketing and Sales Planning             R&D

US PAPs                                  US Pharm Ops

Supply Chain                             US Pharm Ops

Specialized Customer Capabilities        US Pharm Ops

US Government Affairs                    US Pharm Ops

R&D                                      Sanofi pasteur US

R&D (Toronto)                            Sanofi pasteur CA


                                    23
Patient 21




             24
   Social Engagement
   Sub-Team

                    Function                     Scope

Community Affairs                   US Pharm Ops

US Philanthropy                     US Pharm Ops

Human Resources                     US Pharm Ops

Communications                      Sanofi-aventis CA

Communications                      Sanofi pasteur US

Human Resources                     US R&D

Human Resources                     Sanofi pasteur US


                               25
Social Engagement




                26
  Business Ethics
  Sub-Team

                Function                  Scope

US Legal                        US Pharm Ops

Compliance                      US

Quality and Compliance          US Pharm Ops

Quality and Compliance          US R&D

Investor Relations              US

Legal                           Sanofi-aventis CA

Legal                           Sanofi pasteur US


                           27
Conducting Business Ethically




                 28
 Health Safety and Environment
 Current Sub-Team


      Function                      Scope

HSE                      US R&D

HSE                      US Pharm Ops

HSE                      Sanofi pasteur

HSE                      Sanofi-aventis CA




                    29
Health Safety Environment Performance




                 30
   NA Purchasing & Supply Chain Council
   Sub-Team

                Function                       Scope

Purchasing                        US Pharm Ops

Distribution/ Supply Chain        US Pharm Ops

Clinical Purchasing               US R&D

Scientific Purchasing             US R&D

Purchasing                        Sanofi pasteur US

Purchasing                        Sanofi-aventis CA

Industrial Affairs                US Pharm Ops

                             31
North American Purchasing Council




                32
2008 Corporate Sustainability Report




                  33
sanofi-aventis Internet website
http://sustainability.sanofi-aventis.com




                      34
      U.S. Sustainability Efforts in Action…




         Sustainability Awareness Program



U.S. Mailbox:
US.Sustainability@sanofi-aventis.com

                                        35
Sustaining a Healthy Future…




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