2.4 Environmental and social risks
2.4 Environmental and social risks
Environmental, social and governance risks are managed alongside strategic and company risks in our Enterprise Risk Management process and governance, as described above. Environment and social risks are therefore identified and managed according to the policies and procedures of the respective business area and escalated according to the corporate risk management process. Where Environment, Social and Governance Risks are not identified among the company top risks above, it means these risks did not reach the threshold to be considered a top risk, rather these risks are managed at the level of the business area and team.
UCB has identified priority pillars in 2019. Our risks and mitigation strategies related to these are outlined above as they relate to Innovation and Access. In addition to these risks, an overview of social, environmental and governance risks is given below:
Social Risks and Processes
In a highly specialized, regulated and industry with a competitive talent market, the principle social and employee risk is the challenge to attract and retain key leadership proﬁles. This includes the risk of not being able to provide adequate compliance training to employees, being unable to provide a healthy and safe environment where employee well-being is inadequately supported or promoted, or where workplace dangers are not managed or sufficiently outlined. These risks could result in a loss of collective capability, impacting operational efficiency and strategy implementation, leading to sub-optimal results and/or safety incidents or sub-optimal health of employees, both physical and mental
The Talent department manages the Workforce Engagement policy and the policy is continuously improved by different processes, including
- Robust annual human resources processes to optimize talent development opportunities including employee development discussions with adequate and continuous employee learning opportunities; continuous employee performance reviews, including an articulation of expected values and behaviors,
- Regular review of the total reward offering to ensure balanced, competitive remuneration to drive outcomes aligned with the company strategy and to ensure the employee and their family are adequately covered during key life events,
- Periodic employee engagement surveys that enable UCB and its leadership to respond to employee feedback on their employment experience,
- Working practices in line with data privacy requirements (GDPR) and
- UCB has also rolled out various health and safety policies as outlined previously.
The outcomes of the social and employee policies include:
- Reduction and mitigation of social and employee risks,
- Workforce that operates in line with deﬁned company values, leading to a healthy company culture where employees can thrive and perform to their best ability,
- Increased employee engagement, leading to greater discretionary efforts and sustainable deployment,
- Continuous development and retention of UCB talent leading to greater organizational capabilities, accelerated innovation and competitive advantage and excellence,
- Increased understanding of the business, compliance and transparency environment, leading to increased ethical and compliant behavior and practices,
- Safe and healthy employees that can function in a positive working environment and
- Focus on delivering UCB’s Patient Value Strategy, with the assurance that they, and their family, are appropriately covered in case of sickness, disability, death and retirement.
Environmental Risks and Processes
UCB has identified certain risks related to the nature of our manufacturing, supply and business operations. Apart from the risk to locally cause soil or water pollution which might result from its industrial activities, UCB recognized that climate change, and more specifically the related emerging regulatory requirements and the accelerating transition to a low carbon economy might globally adversely impact UCB’s compliance status and value chain, if not addressed firmly.
UCB has defined a robust environmental ambition and developed a strategy and policy to minimize our environmental footprint and impact, on the short as well as on the long term. UCBs management approach, strategy and policies are outlined in section 3.3 of this report.
Outcomes of our environmental policies are outlined in section 3.3 of this report.
Anti-Bribery & Corruption
UCBs risks, Policies and outcomes of our policies to manage and mitigate risks related to bribery & corruption are described in section 4.1.2 above.
UCBs risks, Policies and outcomes relating to our policies to manage and risks related to human rights infringements including human slavery are outlined in section 4.1.3 above.