Assets
| Type | Time | Amount | Unit |
|---|---|---|---|
| ifrs-full:Assets | 2024-12-31 | 56976000000 | dkk |
| ifrs-full:Assets | 2023-12-31 | 37407000000 | dkk |
Revenue
| Type | Start date | End date | Amount | Unit |
|---|---|---|---|---|
| ifrs-full:Revenue | 2024-01-01 | 2024-12-31 | 22004000000 | dkk |
| ifrs-full:Revenue | 2023-01-01 | 2023-12-31 | 19912000000 | dkk |
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<mrv:SustainabilityReport contextRef="ctx-1" id="s8__7__6-1" xml:lang="en">We are around 5,600 highly specialized employees 1across +50 countries.* Lundbeck works with a range of different stake-holders sourcing supplies and services: ⢠Energy and raw materials to produce medicines. ⢠Research organizations to conduct clinical studies and establish evidence for new drug candidates. ⢠Medicines produced by contract manufacturers and partners. ⢠Key opinion leaders e.g., healthcare professionals.* Lundbeck is headquartered in Denmark and operates in over 50 countries, covering: ⢠Research & Development. ⢠Production & Supply. ⢠Marketing & Sales. ⢠Business enabling functions, such as Corporate Functions, People & Culture, Corporate Communica-tions & Public Affairs.* Lundbeckâs main outcome is our impact on patients, people, and society, covering: ⢠Value based treatment options for healthcare systems. ⢠Improvement of health outcomes for patients. ⢠Profitability to shareholders. ⢠Reinvestment into R&D. ⢠Jobs and skills development for employees. ⢠Tax contributions to societies we are part of.* 3Our key stakeholdersPatients are an integral part of Lundbeckâs full value chain ecosystem and fundamental to our patient-centric go-to-mar-ket approach. Their lived experiences and ability to point to unmet medical needs enable us to drive focused innovation across all aspects of our business.* While patients are the end-users of our pharmaceutical prod-ucts, Lundbeckâs customers are healthcare professionals (HCPs), including physicians and specialists, as well as au-thorities, such as regulatory bodies, and public and private healthcare providers. Our customers play an important role across our value chain, where HCPs are the point of contact with patients in the downstream value chain, and the authori-ties are regulating our access to the market.* Operating in a highly regulated industry, Lundbeck has strong procedures and internal processes in place to ensure compliance with pharmaceutical regulations, achieve opera-tional excellence and instill trust across our value chain.* Leveraging our key partnerships across the value chain, in-cluding R&D, commercial and other types of partnerships, e.g., civil society and NGOs enables Lundbeck to drive our business, increase awareness and ensure societal impact.* As a listed company with many investors and shareholders, Lundbeck is committed to communicating a consistent mes-sage and delivering sustainable growth.* To pursue all these goals and serve people affected by brain disorders and society at large, Lundbeck relies on highly qual-ified and specialized employees. Furthermore, suppliers and the workers in the value chain are key to providing the fun-damental inputs to produce Lundbeckâs high-quality prod-ucts.* For more information on our stakeholder engagement, please refer to our Sustainability Statement (see page 72). 1MarketsLundbeckâs products are registered in more than 80 countries, and we have employees in more than 50 countries. Our largest markets are the U.S., China, Canada, Spain, Italy, France, Brazil, Australia, South Korea and Switzerland.* Total revenue 2 (DKKm)* 22,004 Total revenue from products 2(DKKm)* 21,690Other revenue and effects from hedging 314 2(DKKm)* 1,2 Abilify LAI franchise*®/Trintellix®1Brintellix* ®/Rxulti®1Rexulti* ®1Vyepti* ®®1Cipralex/Lexapro* 1Other pharmaceuticals* Governance framework 1Board of DirectorsLundbeckâs Board of Directors is responsible for ap-proving the corporate strategy, setting goals for Ex-ecutive Management, and ensuring that members of Executive Management and other senior managers have the right qualifications. The Board of Directors also evaluates management performance and man-agement remuneration. Furthermore, the Board of Directors has the overall responsibility for ensuring that adequate procedures for risk management and internal controls are in place and for overseeing the management of Lundbeckâs sustainability impacts, risks, and opportunities.* This responsibility is defined in the Danish Compa-nies Act and stipulated in the rules of procedures for the Board of Directors.* The Board of Directors consists of 11 members, of which seven members are elected by the General As-sembly for a one-year term and four members are elected by employees for a 4-year term.*Four out of the seven members of the Board of Di-rectors elected by the General Assembly (57%) are considered independent while three members are not due to their close relationship with the Lundbeck Foundation. The members elected by the General 2 Governance* At Lundbeck, we structure corporate govern-ance processes through a number of mana-gerial bodies which interact, control, and de-pend on each other. Assembly bring deep industry knowledge and solid top management experience to Lundbeck. A detailed description of the members of the Board of Directors and their competencies and experiences can be found on page 45-46.* By 30 June 2026, Lundbeck is committed to achieving 1equal gender distribution among all the members of the Board of Directors, comprising those elected by the General Assembly and those elected by em-ployees. The target is set in accordance with the new Gender Balance Act. The gender composition of the board is detailed on page 112.* These responsibilities are detailed in the Audit Com-mittee Charter, which was updated in 2024 to reflect the new responsibility of oversight on Lundbeckâs impacts, risks, and opportunities.* Our Remuneration Policy specifies the framework and overall principles for defining the remuneration of Lundbeckâs Board of Directors and the Executive Management, as further detailed within our 2024 Remuneration Report. The Remuneration Report is published annually by the Remuneration & Nomina-tion Committee following approval by the Board of Directors at the annual general meeting.* The remuneration components identified in the policy and in the Remuneration Report seek to con-tribute towards Lundbeckâs business strategy, long-term interests, and sustainability objectives.* The Executive Management team consists of eight members, led by Charl van Zyl, President and CEO. Lundbeckâs CEO has the highest responsibility for the corporate and sustainability strategies and presents any significant decisions to the Board of Directors for approval, including decisions related to the manage-ment of Lundbeckâs material impacts, risks, and op-portunities. Currently, three out of the eight mem-bers of Executive Management are women, equaling a female representation of 38%.* A 10% share of the Executive Managementâs short-term incentive (STI) program is linked to Lundbeckâs performance on our Sustainability Strategy. The STI payout is contingent on the achievement of five shared sustainability targets related to Lundbeckâs Sustainability Strategy across environment, social and governance objectives. For 2024, these included the number of suppliers signing Lundbeckâs climate commitment, renewable energy agreements for cer-tain sites, the share of the underrepresented gender in management, inclusion scores in Lundbeckâs âOur voiceâ survey, and CSRD reporting; each making up a 2% share respectively.* Please see more information on Lundbeckâs Sustain-ability Strategy at page 62.*3 Experience and competences* With extensive experience in global med-tech from his most recent position as CEO of Coloplast, Lars Søren Rasmussen has driven efficiency improvements and internationalization. His experience as Chair of several diversity and corporate governance committees supports Lundbeckâs sustainability strategy. 3 Experience and competences*Lene Skole-Sørensen is highly experienced in heading listed companies from her current and previous position as CFO of Coloplast. With a strong background in finance, strategy, business development and M&A, she ensures long-term value creation at Lundbeck. 3 Experience and competences*Ilse Dorothea Wenzel has an extensive track record in lead-ership across multiple industries including a long career at Merck KGaA. With strong competences in corporate finance and business development, she strengthens Lundbeck's strategic direction towards financial growth and sustainabil-ity performance. 3 Experience and competences*With 20 years of experience working at Novo Nordisk in vari-ous positions in the commercial area, Jakob Riisâ compe-tences contributes to strategic decision-making and govern-ance, as well as pharmaceutical value chain management and market communication. 2 Experience and competences* With extensive experience in the healthcare industry, Jeffrey Berkowitz has deep knowledge of generic and branded pro-curement and inventory management, pricing, reimburse-ment, specialty pharmacy distribution, and healthcare strat-egies. 2 Experience and competences* Lars Erik Holmqvist has held management positions in mul-tiple pharma and med-tech companies. With this extensive experience he brings robust competences in management, finance, sales, and marketing within life science companies to Lundbeck. 2 Experience and competences* With extensive experience in clinical development and stra-tegic leadership in the pharmaceutical industry, Santiago Ar-royoâs competences enhance Lundbeck's focus on innova-tive healthcare solutions and patient-centric approaches. 2 Experience and competences* With extensive experience in commercial international man-agement within the pharmaceutical industry, Charl van Zyl drives Lundbeck's commitment to patients, people, and planet. 2 Experience and competences* With extensive HR leadership experience from international pharmaceutical companies, Dianne Hol enhances company performance and supports Lundbeck's sustainability aspira-tions through a strong people strategy. 2 Experience and competences* With extensive experience in financial roles across the phar-maceutical and biotech industries, Joerg Hornstein ensures financial and sustainability performance and transparency. 2 Experience and competences* With over 30 years of experience in pharmaceutical R&D, Per Johan Luthman supports Lundbeck's commitment to devel-oping transformative treatments and expanding their indi-cation space. 2 Experience and competences* With a long tenure at Lundbeck since 1988, holding various roles in R&D and corporate planning, Lars Bang ensures in-novative product development and robust supply chain management. 2 Experience and competences* With extensive experience in strategic commercial leader-ship from the life science and pharmaceutical sectors glob-ally, Maria Alfaiate enhances Lundbeck's global marketing efforts and corporate strategy, leading integration of sus-tainability into the business strategy. 2 Experience and competences* With extensive experience in the biopharmaceutical sector, serving 19 years at Novo Nordisk, Michala Fischer-Hansen has a strong track record in improving business perfor-mance. 2 Experience and competences* With extensive experience in corporate and commercial leadership roles, Thomas Gibbsâ competences drive business performance on the US market. 1Market, commercial and strategy* 1Supply, quality and product safety* 1Legal and compliance* Lundbeckâs material impacts, risks, and opportuni-ties (IROs) are identified as part of the annual DMA process. The IROs that are material for reporting in 2024 are presented on page 65-67 and the views and interests of affected stakeholders are incorporated into Lundbeckâs existing governance structures and frameworks. This ensures a consistent approach be-tween the enterprise risk management framework and the DMA.* Prior to 2024, Lundbeck managed sustainability-re-lated risks within the existing risk management framework. With the adoption of the Corporate Sus-tainability Reporting Directive (CSRD) in 2024, Lundbeck has enhanced the governance and pro-cesses for managing ESG risks. The Audit Committee now oversees the sustainability reporting framework and supervises the sustainability risk management framework and process, including recurring risk identification, monitoring, mitigation, and reporting at all levels.* The Executive Management approves initiatives to achieve the Sustainability Strategy and oversees progress. Progress is driven in close collaboration with other levels of Lundbeckâs management, spe-cialistsâ subject matters, as well as with relevant lines of business and corporate functions. Within this gov-ernance, Lundbeck has in place a cross-functional working group to ensure compliance with regulatory requirements, monitor impact, risks, and opportuni-ties, as well as the progress of our Sustainability Strategy and targets.* With the aim to strengthen the access to sustainabil-ity expertise to all members of the Board of Direc-tors, the Audit Committee and Executive Manage-ment, sessions with internal subject matter functions to discuss relevant sustainability updates have been part of the planned meetings in 2024. This process enables the members of the governance bodies to have access to the sustainability expertise to oversee Lundbeckâs key topics, as well as material impacts, risks, and opportunities.* Price pressure, new legislation, regulation of reimbursement 1and healthcare reforms in key markets, etc.* Disruption of production or supply or unpredictable demand 1and stock-out.* Non-compliance with laws, industry standards, regulations, and 1our Code of Conduct.* 1Exposure to legal claims or investigations.* 1Internal controls - Sustainability reportingIn 2024, as part of the implementation of CSRD, Lundbeck has adopted an internal control frame-work for sustainability reporting. This change has comprised an evaluation of our internal processes and the reassessment of existing internal controls within these processes. As a result, Lundbeck has de-fined a roadmap to redesign and implement internal controls for its sustainability reporting processes over the next years, aiming to ensure accuracy and completeness of Lundbeckâs sustainability disclo-sures.* Lundbeckâs sustainability reporting governance structure was updated to be consistent with the ex-isting financial risk management and internal controlgovernance structure. Through this governance, the Board of Directors has the supervisory duty and the Executive Management has the overall responsibility for Lundbeckâs risk management and internal con-trols, including compliance with relevant legislation and additional disclosure requirements pertaining to sustainability reporting. The Audit Committee has an advisory role to the Board of Directors, supporting the monitoring and assessment of sustainability in-ternal controls in the sustainability reporting proce-dures.* Internal controls and monitoring activities for sus-tainability reporting are being incorporated into the same framework as Lundbeckâs financial reporting, which is in line with the established roadmap.* The requirements for sustainability reporting have been defined and incorporated into Lundbeckâs Dou-ble Materiality Assessment, ad-hoc analyses, key metrics, sustainability performance data, etc., in the sustainability information that forms the basis of in-ternal and external sustainability reporting. Lundbeckâs business areas are implementing report-ing processes that are consistent with Lundbeckâs overall reporting processes and control activities.* As part of the limited assurance of the Sustainability Statement, the external auditors appointed at the annual general meeting, report on major weak-nesses in Lundbeckâs internal controls in the long-form audit and assurance report to the Board of Directors, while less significant weaknesses are ad-dressed in a management letter to the CFO.* Sustainability Statement Martha, living with Depression In this section 59 General disclosures 73 Environment 101 Social 129 Governance 138 List of appendices General disclosures Sheng, living with Parkinsonâs In this section 60 Guide to the Sustainability Statement 62 Sustainability at Lundbeck 64 Double materiality assessment 71 Basis for preparation 72 Sustainability due diligence Guide to the Sustainability Statement In 2024, Lundbeck introduces its first fully Integrated Annual Report, aligning with the requirements of the Corporate Sustainability Reporting Directive (CSRD) and the European Sustainability Reporting Stand-ards (ESRS). The Sustainability Statement is part of the Management Review and comprises four key reporting areas: ⢠General information (ESRS 2) ⢠Environmental information (ESRS E1, E2, and E5) ⢠Social information (ESRS S1, S2, and S4) ⢠Governance information (ESRS G1) The sustainability topics and related disclosure requirements (DRs) addressed in these sections are identi-fied based on Lundbeckâs Double Materiality Assessment (DMA), specified on pages 64-70. As summarized in the table âList of DRs complied with and list of DRs incorporated by referenceâ and in com-pliance with technical requirements, our CSRD disclosures are included within the Sustainability State-ment, in the appendices, and in other sections of the Management Review, by exercising the option of incorporation by reference. The disclosures placed outside of the Sustainability Statement are clearly identified with a footnote, referring to the applicable disclosure requirement of the ESRS regulation. In addition, an asterisk (*) is added after each subsection to indicate which text is covered by the Independ-ent Auditor's Limited Assurance Report. Lundbeck believes that this approach ensures improved coherence and readability of the report, limiting the number of repetitions when disclosing about our business model, value chain, governance frame-work, incentive schemes, and risk management processes. List of DRs complied with and list of DRs incorporated by reference 1 IRDR Disclosure requirement (DR) description Page General disclosures BP-1 General basis for preparation of Sustainability Statement 71 BP-2 Disclosures in relation to specific circumstances 60-61; 71 ó°£ GOV-1 The role of the administrative, management, and supervisory bodies 42-54 GOV-2 Information provided to sustainability matters addressed by the undertakingâs administrative, manage-51 ó°£ ment, and supervisory bodies ó°£ GOV-3 Integration of sustainability-related performance in incentive schemes 44 GOV-4 Statement on due diligence 72; 143 ó°£ GOV-5 Risk management and internal controls over sustainability reporting 50-54 ó°£ SMB-1 Strategy, business model, and value chain 17-21; 62-63 ó°£ SBM-2 Interests and views of stakeholders 51; 62-63; 72 SBM-3 Material impacts, risks, and opportunities and their interaction with strategy and business model 62-67; 70; 79-80 IRO-1 Description of the processes to identify and assess material impacts, risks, and opportunities 68-70 IRO-2 Disclosure requirements in ESRS covered by the undertakingâs Sustainability Statement 64; 68-69 E1 Climate change ó°£ GOV-3 Integration of sustainability-related performance in incentive schemes 44 E1-1 Transition plan for climate change mitigation 75-78 SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model 63; 65; 79-80 IRO-1 Description of the processes to identify and assess material climate-related impacts, risks and opportunities 79-80 E1-2 Policies related to climate change mitigation and adaptation 75 E1-3 Actions and resources in relation to climate change policies 76-77 E1-4 Targets related to climate change mitigation and adaptation 75; 78-80; 82 E1-5 Energy consumption and mix 81; 83 E1-6 Gross scopes 1, 2, 3 and Total GHG emissions 82-84 E1-7 GHG removals and GHG mitigation projects financed through carbon credits 75 1 IR = Incorporation by reference. The disclosure requirements identified with a dot [ó°£] are incorporated in the Sustainability Statement, either entirely or partially, by reference to a different section of the Management Review. 1 IRDR Disclosure requirement (DR) description Page E2 Pollution IRO-1 Description of the processes to identify and assess material pollution-related impacts, risks and opportuni-65; 68-70 ties E2-1 Policies related to pollution 86-88 E2-2 Actions and resources related to pollution 86-88 E2-3 Targets related to pollution 88 E2-4 Pollution of air, water and soil 89 E2-5 Substances of concern and substances of very high concern 90 E5 Resource use and circular economy IRO-1 Description of the processes to identify and assess material resource use and circular economy-related im-68-70 pacts, risks and opportunities E5-1 Policies related to resource use and circular economy 92 E5-2 Actions and resources related to resource use and circular economy 92-93 E5-3 Targets related to resource use and circular economy 93-94 E5-4 Resource inflows 95-96 E5-5 Resource outflows 95-96 S1 Own workforce SBM-2 Interests and views of stakeholders 72 SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model 66; 70 S1-1 Policies related to own workforce 103; 106; 108 S1-2 Processes for engaging with own workers and workersâ representatives about impacts 110 S1-3 Processes to remediate negative impacts and channels for own workers to raise concerns 110 S1-4 Taking action on material impacts on own workforce, and approaches to mitigating material risks and pur-103; 106-109 suing material opportunities related to own workforce, and effectiveness of those actions S1-5 Targets related to managing material negative impacts, advancing positive impacts, and managing mate-104; 106-107; rial risks and opportunities 109 S1-6 Characteristics of the undertakingâs employees 111; 113 S1-9 Diversity metrics 112-113 S1-14 Health and safety metrics 104 S1-16 Compensation metrics (pay gap and total compensation) 112-114 S1-17 Incidents, complaints and severe human rights impacts 113-114 1 IRDR Disclosure requirement (DR) description Page S2 Workers in the value chain SBM-2 Interests and views of stakeholders 72 SBM-3 Material impacts, risks, and opportunities and their interaction with strategy and business model 66; 70 S2-1 Policies related to value chain workers 116 S2-2 Processes for engaging with value chain workers about impacts 116-117 S2-3 Processes to remediate negative impacts and channels for value chain workers to raise concerns 117 S2-4 Taking action on material impacts on value chain workers, and approaches to managing material risks and 117 pursuing material opportunities related to value chain workers, and effectiveness of those action S2-5 Targets related to managing material negative impacts, advancing positive impacts, and managing mate-117 rial risks and opportunities S4 Consumers and end-users SBM-2 Interests and views of stakeholders 72 SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model 66; 70 S4-1 Policies related to consumers and end-users 119; 121-122; 125; 127 S4-2 Processes for engaging with consumers and end-users about impacts 119-120; 121; 122; 126-127 S4-3 Processes to remediate negative impacts and channels for consumers and end-users to raise concerns 119-120; 121; 122-123; 126;128 S4-4 Taking action on material impacts on consumers and end-users, and approaches to managing material 119-120; 121; risks and pursuing material opportunities related to consumers and end-users, and effectiveness of those 122-123; 125-actions 128 S4-5 Targets related to managing material negative impacts, advancing positive impacts, and managing mate-120-121; 123; rial risks and opportunities 126;128 G1 Business conduct GOV-1 The role of the administrative, supervisory and management bodies 131 IRO-1 Description of the processes to identify and assess material impacts, risks, and opportunities 70 G1-1 Corporate culture and business conduct policies 131-135 G1-2 Management of relationships with suppliers 134 G1-3 Prevention and detection of corruption and bribery 131; 133 G1-4 Confirmed incidents of corruption or bribery 136-137 1 IR = Incorporation by reference. The disclosure requirements identified with a dot [ó°£] are incorporated in the Sustainability Statements, either entirely or partially, by reference to a different section of the Management Review. ESRS E3, E4, and S3 were deemed immaterial and are therefore not dis-closed in Lundbeckâs 2024 Annual Report. For more information on our materiality results, see pages 64-67. Sustainability at Lundbeck For decades, Lundbeck has emphasized sustainabil-ity as a key element in the way we run our business and strive towards a better future. Lundbeckâs Sus-tainability Strategy aims to mitigate our most signifi-cant sustainability risks, adverse impacts, and en-hance our positive impacts to society. The Sustainability Strategy encompasses four pillars:⢠Access to Health, ⢠Business Ethics, ⢠Climate Change & Circularity, and ⢠People & Communities. These strategic priorities reflect Lundbeckâs commit-ment to integrating sustainable practices through-out our operations, driving short-term actions and long-term ambitions. Each pillar of the Sustainability Strategy is supported by annual targets designed to help us achieve our 2030 aspirations. We place high value on the United Nationsâ Sustaina-bility Development Goals (SDGs) in shaping our strat-egy. We have identified seven SDGs which are appli-cable to our business, and since 2020 we have used them to guide our actions towards addressing the main challenges within each pillar of our Sustainabil-ity Strategy. Access to brain health Health is an integral and cross-cutting part of sus-tainable development, as represented by SDG 3 (Good Health and Wellbeing for All). Upholding all four pillars of Lundbeckâs Sustainability Strategy is fundamental for achieving our core commitment to sustainability - ensuring access to healthcare for those who need our treatments. By upholding ethi-cal business practices, caring for our environment and communities, and maintaining a fair, engaging, and inclusive workplace, we believe expansion of ourtherapeutic reach within neuroscience is possible. Improving access to brain health also provides the opportunity to make our medical innovations acces-sible to more patients who need them. This will en-hance health outcomes, improve patient quality of life, and improve the productivity of individuals livingwith neurological and psychiatric conditions. We have defined long-term aspirations to make in-novative treatment available through R&D, promote equitable access, enhance cultural acceptability, and provide quality and efficacious medical products. Our aspirations for access to brain health are in-formed by our key stakeholders - patients, healthcare providers, partners, including civil societyand NGOs, suppliers, including researchers and sci-entists, shareholders, and employees â each of whom contribute towards driving our agenda and provide unique knowledge on how to improve goodhealth and wellbeing for all. Our understanding of their views and interests comes from continuous, actual interactions by various functions at Lundbeck. Each day our treatments reach more than 7 million 1people in over 100 countries, and even more pa-tients are reached in collaboration with our commercial partners. Lundbeckâs Access to Health frontier relates to the lack of parity for mental health and neurology within countries rather than between countries, with current operations limited in those which are low- or middle-income. Resilience of our business model Overall, Lundbeckâs strategy and business model areresilient regarding our capacity to address our material impacts and risks and to take advantage of our material opportunities. This is most strongly demonstrated in relation to climate change, as the management of our impact is mature, with investments hav-ing been made gradually over several decades. Reg-ular evaluations of the resilience of our operations and supply chains in relation to climate related risksare carried out and actioned. For our other impacts, risks, and opportunities, Lundbeck has historically addressed these through dedicated departments and processes. As science better informs us about what transitions are neededtowards improved sustainability practices, we will continuously develop our approach and understanding of the resilience of our business. Sustainability Strategy update In 2024, Lundbeck has started a process to update our Sustainability Strategy to further strengthen and prioritize our management of impacts, risks, and opportunities as an inte-grated part of our new business strategy. This update is part of our recurring review process and aims to ensure adherence of our Sustain-ability Strategy with our business strategy as well as future requirements and principles of due diligence and responsible conduct. These are upheld by the interests and views of key stakeholders, the latest scientific knowledge, and relevant EU Directives, including CSRD and the EU Taxonomy. 1 Estimated number of full-year patients is 7.2 million, based on 2024 sales data for Lundbeck products, excluding partner products. For further information, please refer to accounting policies on page 124. 1Lundbeckâs sustainability priorities and correlation with DMAMateriality aspects How is this topic related to Lundbeckâs business model and strategy? What topics does Lundbeck hold responsibility for manag-ing actual and potential im-pacts on people and the envi-2 ronment based on the DMA?What are the financial risks or opportunities for our business 2based on the DMA?Lundbeckâs aspirations for 2030 Access to Health S4 Lundbeckâs business model is to research, develop, produce, and market medicines for psychiatric and neurological diseases. Our long-term success depends on health parity, reduced stigma, and cultural acceptance of brain diseases. Pressure on healthcare systems could lead to reforms potentially impacting Lundbeckâs business. + Innovation in treatment + Patient voice - Inequality in access to health - Product safety and quality - Responsible and ethical marketing - Risk of pricing, reimbursement, and access - Risk of failure of pharmacovigilance ⢠Leverage our specialist knowledge to address the burden of brain diseases and make medicines available. ⢠Promote accessibility of our medicines by addressing discriminatory, physical, economic, and informational barriers. ⢠Improve mental health parity, reduce stigma, support national suicide preventionefforts, and enhance cultural acceptability of brain diseases. ⢠Provide medicines of good quality, preservpatient safety, and combat counterfeit medicine. Business Ethics G1 When Lundbeck maintains ethical business practices and respects rules and regulations, we protect pa-tients, uphold stakeholder integrity, and minimize therisk of financial repercussions. Ethical conduct to avoid potential negative impacts throughout in our value chain is vital for our license to operate, espe-cially in relationships with healthcare professionals, patients, and other stakeholders. - Business ethics - Responsible sourcing - Animal welfare - Business ethics and Code of Conduct breach ⢠Promote business ethics, including human and la-bor rights through strengthened collaboration with key business partners. ⢠Demonstrate that the Code of Conduct complianceprogram and organization work sustain an ethical culture and prevent any form of corruption. ⢠Protect the integrity of the healthcare profession-als we work with and use transparency as an asset.Climate Change E1 E2 E5 & Circularity Lundbeck's business model impacts the environment nega-tively through greenhouse gas emissions from energy use, transportation, and supply chain activities, as well as waste generation contributing to climate change and potential pollution. If we minimize our impact on the environment in the entire value chain, we mitigate the risk of restrictions or disruptions to our production and supply to the benefit of our patients. - GHG emissions leading to climate change - Air pollution - Soil pollution - PFAS soil pollution - Water pollution from pharmaceutical residues - Waste and resource use - Damage to facilities from wild weather events - Increasing raw material costs ⢠Deliver on the âBusiness Ambition for 1.5° Câ pledge. ⢠Transition electricity supply to renewable sources. ⢠Manage two-thirds of value chain carbon emissions equally as effectively as carbon emissions from opera-tions. ⢠Minimize key business partnersâ carbon emissions re-flected in relevant agreements. ⢠Establish manufacturing processes based on circular economy principles to limit materials use, waste, and CO2emissions. ⢠Expand application of circular economy principles to key partners. ⢠Use detailed knowledge about active pharmaceutical ingredients to minimize their environmental impact. People & S1 S2 Communities Our business model relies on attracting and retaining a skilled and diverse workforce. When Lundbeck is suc-cessful in maintaining a safe, inclusive culture, free of harassment and discrimination, it helps us remain a preferred employer and attract the best and most dedicated scientists and other staff, enabling us to develop innovative treatments for patients. - Diversity, Equity, and Inclusion (DE&I) - Health and Safety, Mental wellbeing - Human rights and health and safety in the value chain - Inability to attract and retain employees ⢠Be recognized as a workplace that fosters physical and mental wellbeing. ⢠Show leadership to promote mental health with preventive actions at our workplaces globally. ⢠Achieve a lost time accident frequency ⤠3. ⢠Be recognized by employees and externally as a work-place with an inclusive culture that offers equal oppor-tunities for all. ⢠Influence the public debate on equality and inclusion by setting ambitious targets, enhancing data trans-parency, and communicating actively. ⢠Request key business partners to promote diversity and prevent discrimination in all its forms. Double materiality assessment Every year, Lundbeck conducts a Double Materiality Assessment (DMA) to identify, assess, and monitor our material impacts on people and the environment (impact materiality), as well as key business risks and opportunities arising from sustainability topics (fi-nancial materiality). In 2024, the following sustainability topics are mate-rial for reporting in relation to our business model, operations, and business relationships across the value chain: E1 Climate change (ESRS E1) E2 Pollution (ESRS E2) E5 Resource use and circular economy (ESRS E5) S1 Own workforce (ESRS S1) S2 Workers in the value chain (ESRS S2) S4 Consumers and end-users (ESRS S4) G1 Business conduct (ESRS G1) Within these topics, Lundbeck identified 37 sustaina-bility sub-topics to be evaluated for materiality. These sub-topics were assessed as material (i.e., impact, financial or both) or not material for report-ing, as illustrated within the matrix on this page. Each sub-topic is linked to specific impacts, risks and opportunities (IROs), and those IROs deemed mate-rial (listed and described on pages 65-67) form the basis for Lundbeckâs topical disclosures. Additional details on our DMA methodology, materiality thresh-olds and basis for preparation are provided on pages 68-70. Although IROs related to Water and Marine Resources (ESRS E3), Biodiversity and Ecosys-tems (ESRS E4) and Affected Communities (ESRS S3) fell under our materiality thresholds, Lundbeck rec-ognizes its responsibility to continue monitoring and managing these topics through our existing govern-ance processes, policies, and actions. Our work on water and biodiversity is described on our website through our position papers, as well as disclosed as part of our Carbon Disclosure Project (CDP) report-ing. In addition, Lundbeckâs efforts to identify, pre-vent and monitor its impact on affected communitiesare informed by our sustainability due diligence, in-cluding site audits and engagement with stakehold-ers residing close to our production sites in Den-mark, Italy and France. Impact material Material from both perspectives 3 4 5 6 7 8 18 19 2 17 20 29 2123 24 25 34 35 36 30 31 32 33 s Not material Financially material 9 10 11 12 13 14 15 1 16 22 26 27 28 37 Environment E1 Climate Change 1 Climate change adaptation 2 Climate change mitigation 3 Energy E2 Pollution 4 Pollution of air 5 Pollution of water 6 Pollution of soil 7 Substances of concern 8 Substances of very high concern 9 Pollution of living organisms 10 Microplastics E3 Water and Marine Resources 11 Water 12 Marine resources E4 Biodiversity and Ecosystems 13 Direct impact drivers of biodiversity loss 14 Impacts on the state of species 15 Impacts on the extent & condition of ecosystems 16 Impacts & dependencies on ecosystem services E5 Resource Use and Circular Economy 17 Resource inflows, including resource use 18 Resource outflows related to products & services 19 Waste Social S1 Own Workforce 20 Equal treatment and opportunities for all 21 Working conditions 22 Other work-related rights S2 Workers in the Value Chain 23 Equal treatment and opportunities for all 24 Working conditions 25 Other work-related rights S3 Affected Communities 26 Communitiesâ economic, social and cultural righ27 Communitiesâ civil and political rights 28 Rights of indigenous people S4 Consumers and End-users 29 Information related impacts 30 Personal safety of consumers 31 Social inclusion of consumers Governance G1 Business Conduct 32 Corporate culture 33 Corruption and bribery 34 Protection of whistle-blowers 35 Animal welfare 36 Management of relationships with suppliers 37 Political engagement and lobbying activities 1Impacts, risks and opportunities (1 of 3)2Business Model & Value ChainIRO name IRO type Description Time HorizonS M L Upstream Own Operations Downstream E1 Climate change Greenhouse gas Lundbeckâs business model entails the development, production, distribution, and marketing of medicines. These activities Purchased goods and ser-Lundbeck's sites, pur-Actual negative emissions leading have a greenhouse gas emissions footprint, which contributes to climate change. Until we reach our Paris-aligned, Net-Zero ó°£ ó°£ ó°£ vices, and chased electricity and heat, Distribution impact to climate change SBTi targets, Lundbeck has an actual negative impact on the environment. business travel and company cars Damage to facili-Scientific evidence supports that climate change is making extreme weather events more likely and severe. Such events can Suppliers of raw materials Physical ties from wild cause physical damage to Lundbeck's facilities and those of our suppliers. This may lead to higher costs associated with re-ó°£ ó°£ ó°£ and contract manufactur-Lundbeckâs sites Distribution financial risk weather events storing impacted facilities and implementing preventive measures. ers E2 Pollution Actual negative As a producer of primarily chemical pharmaceutical products, which typically require the use of organic solvents, Lundbeckâs Air pollution ó°£ ó°£ ó°£ - Lundbeckâs production sites - impact manufacturing processes and operations impact air quality through the release of air pollutants to the environment. Water pollution Lundbeckâs medicines contribute to the presence of pharmaceutical residues in the environment. The release of pharmaceu-Patientsâ excretion of phar-Actual negative from pharmaceuti-tical residues by patients can lead to the contamination of water bodies and ecosystems, potentially impacting wildlife and ó°£ ó°£ ó°£ - Lundbeckâs production sites maceutical residues after impact cal residues human health. using Lundbeck medicines Lundbeck's manufacturing facilities and suppliers use and produce chemicals and active pharmaceutical ingredients. Inci-Potential negative Chemical waste manage-Soil pollution dental spillages or leaks may lead to soil quality degradation, potentially impacting terrestrial ecosystems and the broader ó°£ ó°£ ó°£ Lundbeckâs production sites - impact ment by suppliers environment. Fire foam containing PFAS (per- and polyfluoroalkyl substances) was used until 2011 at one of Lundbeckâs production sites in Actual negative PFAS soil pollution Denmark, in compliance with applicable law and following guidance from authorities at the time. In 2022, with the growing ó°£ ó°£ ó°£ - Lundbeckâs production site - impact concern of the environmental harm of PFAS, Lundbeck investigated and could confirm PFAS pollution at its LumsÃ¥s site. E5 Resource use and circular economy Circular principles have only been introduced to a limited extent regarding Lundbeckâs resource inflows and outflows, with Packaging waste after Suppliers of raw materi-Resources used and Waste and Actual negative focus currently on reuse and recycling initiatives for hazardous and non-hazardous materials used at production sites. product use by patients ó°£ als, waste management waste from Lundbeckâs resource use impact Limited circularity impacts the environment through the extraction of virgin raw materials and the production of non-recy-services production sites ment facilities clable waste, pollution, and carbon emissions. Increasing raw Lundbeck faces a long-term risk of limited availability of certain chemical raw materials due to the regulatory phase-out of Lundbeckâs production Financial risk ó°£ ó°£ Suppliers of raw materials - material costs unsustainable materials and potential increases in raw material costs. sites and procurement 1 This table presents Lundbeckâs impacts, risks and opportunities (IROs), along with details on whether they are deemed to be actual or potential, positive or negative, over the short, mid- or long term and where in the value chain they arise. 2 S = short-term (<12 months), M= mid-term (between 1 and 5 years). L = long-term (> 5 years). 3 These columns present an overview of which level of Lundbeckâs value chain, our material impacts, risks, and opportunities identified through the DMA are primarily concentrated. 1 Impacts, risks and opportunities (2 of 3)2Business Model & Value ChainIRO name IRO type Description Time HorizonS M L Upstream Own Operations Downstream S1 Own workforce Lundbeck's workforce may encounter various work-related accidents, including exposure to hazardous chemicals, road acci-Systemic, poten-Health and Safety, dents, and ergonomic-related illnesses, respectively affecting production workers, sales representatives, and all employees. Own workforce tial negative im-ó°£ ó°£ ó°£ - - mental wellbeing Additionally, prioritizing employee wellbeing and effectively managing work-related stress is essential for supporting mental pact health. Diversity, Equity, Systemic, poten-If Lundbeck does not have a diverse, equitable, and inclusive work environment, employees may experience limited develop-and Inclusion tial negative im-ó°£ ó°£ ó°£ - Own workforce - ment and reduced wellbeing and health. (DE&I) pact Inability to Failure to continuously promote DE&I across the organization and preserve a diverse workforce can negatively affect Own workforce attract and retain Financial risk Lundbeck's reputation as an attractive workplace where everyone can thrive. This in turn can affect our ability to attract and ó°£ ó°£ - - employees retain a skilled workforce, representing a material financial risk. S2 Workers in the value chain Human rights and Systemic, poten-Lundbeck works with suppliers in over 90 countries, including some countries and supplier categories that have a systemic ó°£ Suppliers & Distribution - Suppliers & Distribution Health and Safety tial negative im-high risk of disrespect for human rights and inadequate health and safety measures for their workers. pact S4 Consumers and end-users Innovation in Potential positive Neurological and psychiatric conditions severely impact patients, families, and society. Neuroscience innovation is essential R&D, production and com-- - treatment impact for breakthrough solutions, enhancing health outcomes and improving patientsâ quality of life. mercial operations Potential positive Integrating the patients perspectives into R&D and drug development can lead to treatments that address unmet needs, in-Patient voice ó°£ ó°£ ó°£ - R&D and clinical trials - impact crease quality of life, and create more personalized medicines. Inequality in ac-Systemic, potential Inequality in access to health is a systemic problem among and within countries. Individuals living in areas affected by war Commercial operations & Distribution and ó°£ - cess to health negative impact and civil unrest are at especially high risk. supply chain department healthcare systems Risk of pricing, Due to the global political pressure on pharmaceutical companies, potential new healthcare reforms could affect prices, reim-All markets in which reimbursement Financial risk bursement, access, and increase Gross-to-Net costs. This risk is connected to the potential negative impact that Lundbeckâs ó°£ ó°£ ó°£ - Healthcare systems Lundbeck operates and access pricing could have on adequate access to health. Systemic, poten-R&D, production, quality, Product safety and Any disruptions in Lundbeck's processes to manage product safety and quality could lead to patients taking unsuitable medi-tial negative im-ó°£ ó°£ ó°£ - and pharmacovigilance - quality cation or forgoing beneficial treatments. All patients are dependent on accurate information to ensure safe use of medicines. pact functions Pharmacovigilance is essential for monitoring the safety and effectiveness of our pharmaceutical products throughout their Risk of failure of Pharmacovigilance Financial risk lifecycle. Any disruptions in this system can lead to delayed identification of adverse events, regulatory non-compliance, repu-ó°£ ó°£ ó°£ - - pharmacovigilance functions tational damage, and financial losses. This risk is connected to the potential negative impact of product safety and quality. Systemic, poten-Without responsible and ethical marketing practices, patients and healthcare professionals could be vulnerable to receiving Customers and Responsible and Commercial operations and tial misleading or unsafe information. This could lead to misuse or distrust of medicines, affect patientsâ economic and physical ó°£ ó°£ ó°£ - healthcare ethical marketing marketing negative impact welfare, and distort healthcare priorities. professionals 1 This table presents Lundbeckâs impacts, risks and opportunities (IROs), along with details on whether they are deemed to be actual or potential, positive or negative, over the short, mid- or long term and where in the value chain they arise. 2 S = short-term (<12 months), M= mid-term (between 1 and 5 years). L = long-term (> 5 years). 3 These columns present an overview of which level of Lundbeckâs value chain, our material impacts, risks, and opportunities identified through the DMA are primarily concentrated. 1 Impacts, risks and opportunities (3 of 3)2 Business Model & Value ChainIRO name IRO type Description Time HorizonS M L Upstream Own Operations Downstream G1 Business conduct Commercial operations and Distribution, customers Failure to prevent corruption and bribery can, in the worst cases, lead to improper prescriptions for patients and distrust in Potential negative Business ethics the overall healthcare system. Any potential failures in the protection of whistleblowers could result in them facing retaliation, ó°£ ó°£ ó°£ Suppliers marketing in and healthcare impact adverse impacts, or litigation. particular professionals Business ethics Interactions with healthcare professionals (HCPs) and public officials pose corruption and bribery risks, potentially resulting in Partners, third parties act-Commercial operations and and Code of Con-Financial risk fines, disgorgement, debarment, contract breaches, or reputational harm. Additionally, potential breaches of competition ó°£ ing on Lundbeck's marketing in - duct breach laws can lead to substantial fines and reputational damage. behalf particular Inadequate responsible sourcing practices can contribute to negative impacts on people and the environment in Lundbeck's Suppliers, third parties act-Corporate functions at Responsible Potential value chain and across Lundbeck's categories of goods purchased globally. The most significant potential impact is related to ó°£ ó°£ ó°£ ing on Lundbeckâs Lundbeck headquarters - sourcing negative impact parties who act on Lundbeckâs behalf and can negatively impact patients' rights and access to treatment. behalf and subsidiaries As part of the development of new treatments, Lundbeck is obliged to conduct tests on animals before use in humans. Ne-Contract research organiza-Actual negative Animal welfare glecting proper care to minimize adverse impacts that animals may experience during pharmaceutical research can affect ó°£ ó°£ ó°£ tions conducting trials on R&D - impact their welfare. behalf of Lundbeck 1 This table presents Lundbeckâs impacts, risks and opportunities (IROs), along with details on whether they are deemed to be actual or potential, positive or negative, over the short, mid- or long term and where in the value chain they arise. 2 S = short-term (<12 months), M= mid-term (between 1 and 5 years). L = long-term (> 5 years). 3 These columns present an overview of which level of Lundbeckâs value chain, our material impacts, risks, and opportunities identified through the DMA are primarily concentrated. DMA methodology DMA key assumptions Scope and value chain Lundbeckâs DMA reflects the value chain perspective, through the assessment of impacts, risks, and opportunities (IROs) arising from own operations, suppliers in the upstream value chain, as well as customers, patients and communities in the downstream value chain. Further details on Lundbeckâs value chain can be found in the Business and Strategy section (see page 18). Sustainability due diligence and stakeholder engagement The perspective of our affected stakeholders and readers of the Sustainability Statement is incor-porated into the assessment by proxy through the knowledge of our internal subject matter ex-perts. These experts span across the organization and are responsible for engaging with affected external stakeholders as part of their daily functions. In addition, their role encompasses gather-ing and understanding the latest scientific evidence and research from proxy stakeholders such as environmental or social organizations, as well as capturing relevant industry trends and devel-opments within their sustainability areas (i.e., Environment, Social and Governance). Lundbeckâs DMA is continuously informed by its Sustainability Due Diligence processes (page 63) and the Enterprise Risk Management framework (pages 50-52). In addition, existing communica-tion channels with external stakeholders enhance the inclusion of the value chain perspectives into our assessment of impacts, risks, and opportunities. DMA step-by-step process Lundbeckâs DMA is a cross-functional and dynamic process which requires a deep understanding of our busi-ness model, value chain, and business relationships. Every year, Lundbeckâs DMA process consists of the fol-lowing five steps: 1) Identify key stakeholders and create a longlist of sustainability matters and related IROs Lundbeck annually revises its understanding of our business model and value chain. This entails the mapping of internal stakeholders and key external stakeholders in the upstream and downstream value chain. To develop the list of relevant sustainability matters to be assessed in our DMA process, Lundbeck considers several internal and external sources, including the list of sustainability matters contained within ESRS 2 Appli-cation Requirement (AR) 16, industry-specific ESG benchmarks (i.e., SASB and MSCI), as well as internal anal-yses, such as Lundbeckâs legacy materiality assessment. The final list of sustainability matters is developed and validated by internal subject matter experts, who are responsible for identifying any related impacts, risks, and opportunities, to be assessed from an impact and financial materiality perspective. 2) Impact materiality assessment The impact materiality assessment entails the evaluation of any actual or potential, positive or negative im-pacts on people or the environment over the short, mid, and long term. Lundbeckâs internal subject matter experts are responsible for assessing the identified impacts related to their sustainability area of expertise. In practice, this takes place through a combination of workshops, research, analyses, and engagements with external consultants. As the subject matter experts are responsible for gaining knowledge about stakeholder views in their area of expertise as part of their everyday operations, they are able to incorporate these views into the impact assessment. Impact methodology Lundbeckâs impact scoring methodology is developed in accordance with ESRS 1 (section 3.4). Our impact scoring ranges from one to five, where one corresponds to the lowest impact. Any actual impacts are as-sessed based on their severity, while potential impacts are based on severity and likelihood of occurrence. In line with the OECD Due Diligence Guidance for Responsible Business Conduct and ESRS 2, severity is given higher weight over likelihood for potential human rights impacts. Severity is derived from the assessment of the intensity of the impact (i.e., scale) and its outreach (i.e., scope) for positive impacts, whereas negative im-pacts are assessed based on scale, scope and the ability to remediate the adverse effect (i.e., irremediable character). Sustainability matters are deemed material for reporting whenever a related impact scores greater than or equal to four out of five. As an internal control procedure, any sustainability matters whose final score falls at three out of five are further investigated with internal subject matter experts to confirm the validity of the re-sult. The final conclusions from the impact assessment are consolidated and used as a basis for the financial materiality assessment to reflect relevant connections and dependencies. 3) Financial materiality assessment The financial materiality assessment takes an outside-in perspective, thereby focusing on any risks and oppor-tunities related to sustainability matters which could affect Lundbeckâs financial position, performance, or cash flows, over the short, mid, and long term. Using the insights from the impact materiality assessment as the starting point, Lundbeckâs financial and ESG reporting experts provide guidance to the internal subject matters experts to identify and assess sustainabil-ity-related risks and opportunities. Moreover, through the periodic review of the enterprise risk management (ERM) register (see top risks on page 52) and the inclusion of relevant DMA risks therein, Lundbeck ensures consistency across our risk management processes. Financial assessment methodology Lundbeckâs financial materiality methodology is designed in accordance with ESRS 1 (section 3.5). Our finan-cial scoring ranges from one to five, where one corresponds to the lowest effect. The first step to our financial materiality assessment is the evaluation of external factors which can give rise to a risk or opportunity. These can include any adverse or positive external events such as upcoming regulations or changes in customer de-mand. After identifying a risk or opportunity related to a sustainability matter, Lundbeck assesses its financial magni-tude and related likelihood of occurrence. The former is assessed in terms of EBIT impact (DKKm) (ranging from one to five), consistent with Lundbeckâs ERM, and considering financial effects on Lundbeckâs financial position, financial performance, cash flows, access to finance or cost of capital over the short, mid, or long term. The latter is assessed in terms of frequency of occurrence. Sustainability matters are deemed material from a financial perspective whenever a risk or opportunity scores above one in financial magnitude. This threshold is defined based on the financial materiality amount used in Lundbeckâs Financial Statements. 4) Consolidation The results from the impact and financial materiality assessment are consolidated to obtain an overview of Lundbeckâs impacts, risks and opportunities. The materiality conclusions are dynamically mapped against the longlist of sustainability matters identified in step one to identify the material topics for reporting. Any sus-tainability matter is deemed material for reporting whenever it is material from an impact materiality per-spective, a financial materiality perspective, or both. 5) Stakeholder and management validation For Lundbeck, continuous stakeholder engagement is key to ensure the accuracy, completeness, and rele-vance of our DMA results. Accordingly, as an internal control procedure, additional resources are dedicated to check the materiality conclusions, including ad-hoc research, benchmark analyses, as well as follow-up discus-sions between topical subject matter experts and ESG reporting experts. The validated results are presented to the leadership team for final endorsement, as the culmination of the close engagement and discussions throughout the DMA process. At Lundbeck, all key decisions related to the DMA approach and results are periodically approved by the Executive Management, the Audit Committee and the Board of Directors, as further described in the Governance Framework section (see page 51). Deep-dive into topical DMA approach In line with the general DMA approach, the following sections provide additional detail on the specific scope, methodologies, and sources used to identify and assess material impacts, risks, and opportunities for envi-ronmental, social, and governance topics. Environment Lundbeckâs environmental subject matter experts consider business activities across own operations as well as the upstream and downstream value chain. This is done by screening locations where impacts, risks, or opportunities are most concentrated or likely to arise. A systematic approach for the assessment of environmental impacts is implemented through the use of scor-ing keys based on topic-specific thresholds derived from relevant tools, frameworks, and regulations. These scoring keys were developed by Lundbeckâs subject matter experts in collaboration with external consultants and are annually revised. The use of tools and external resources ensures a consistent and data-driven screening approach. These tools and resources include the âWorld Resource Institute Aqueduct Water Risk Atlasâ tool, and the âWater Impact Indexâ by CDP to assess water-related impacts (i.e., ESRS E3) and the âWWF Risk Filter Suiteâ tool to assess bio-diversity-related impacts, dependencies, and physical and systemic risks (i.e., ESRS E4). Where relevant, exter-nal frameworks and environmental regulatory requirements are used to guide the assessment such as the âEU Waste Hierarchyâ and the âEU Critical Raw Materials listâ for resource-use and circular economy (i.e., ESRS E5), as well as locally mandated legal pollution limits at production sites (i.e., ESRS E2). In line with the DMA results, no substantial negative impact was identified in relation to water, affected com-munities, ecosystem services, or biodiversity sensitive areas. Lundbeck continues to closely monitor any im-pacts on water, affected communities and biodiversity and cooperate with authorities where applicable. For climate change (i.e., ESRS E1), a climate risk assessment and scenario analysis are conducted, as further speci-fied on pages 79-80. Social To identify any impacts, risks and opportunities related to employees, communities and patients, Lundbeckâs social subject matter experts conduct desktop analyses, informed by people data, policies, Corporate Social Responsibility (CSR) databases, literature, and regulations. The potential impacts on people deriving from Lundbeckâs activities, business relationships and products are assessed for all workers in own operations (i.e., ESRS S1) and across the value chain (i.e., ESRS S2), affected communities (i.e., ESRS S3), as well as consumers and end-users (i.e., ESRS S4). Governance Lundbeckâs corporate subject matter experts assess business conduct matters (i.e., ESRS G1) through desktop analyses, guided by our Code of Conduct, existing policies and channels for handling concerns, as well as applicable regulations. Due to their global scope, business conduct issues were assessed across Lundbeckâs value chain, with a focus on high-risk locations, business activities and interactions. Basis for preparationLundbeckâs Sustainability Statement is prepared in accordance with the Corporate Sustainability Reporting Directive (CSRD) and the European Sustainability Reporting Standards (ESRS). The Sustainability Statement was approved by the Board of Directors and authorized for issue on the 5 February 2025. The metrics disclosed in the Sustainability Statement include consolidated data from the parent company, H. Lundbeck A/S, and the subsidiaries. The Sustainability Statement is consolidated following the Groupâs ac-counting policies disclosed in its consolidated Financial Statements, unless otherwise specified in the account-ing policies within each topical ESRS disclosure. Lundbeck has defined its operational control in accordance with the ESRS, encompassing the parent company and its subsidiaries. In the event of acquisitions or divest-ments, the Sustainability Statement is following the same principles as the Financial Statements. In addition to complying with the Danish Financial Statements Disclosure Act (sections 99a, 99d, and 107d) and the EU Tax-onomy Regulation (article 8), Lundbeck reports under various sustainability frameworks, including the United Nations Global Compact (UNGC), the Science Based Targets Initiative (SBTi), the Carbon Disclosure Project (CDP), the UN Sustainable Development Goals (SDGs), and the UK Modern Slavery Act. All material information presented in this report is identified based on the outcome of Lundbeckâs 2024 Double Materiality Assessment (DMA), covering own operations as well as the upstream and downstream value chain. Detailed information on our DMA results and methodology can be found on pages 64-70. Changes in preparation Comparative figures for the metrics âEnergy Consumption and Mixâ, âGross scopes 1, 2, and 3, Total GHG Emis-sionsâ, âWasteâ, as well as the âOPEX EU Taxonomyâ have been restated compared to 2023 to reflect the update of the accounting policies with the implementation of the CSRD and ESRS requirements, as described in the foot-note for the respective metrics. Comparative figures As this is the first year of preparing the Sustainability Statement in accordance with the ESRS, Lundbeck has not included comparative figures, except for specific metrics that were previously reported in Lundbeckâs 2023 Sustainability Report. These metrics include: Energy consumption and mix, Gross scopes 1, 2, 3 and total GHG emissions, Waste, Gender distribution at top management, Donated Treatments in LMICs, Compliance Hotline Reports, Code of Conduct, Business Ethics Due diligence, and Internal and external audits. Key estimates and assumptions In preparing the Sustainability Statement, Management has made estimates and judgement that affect the application of the accounting policies and the reported figures for the sustainability metrics. The actual re-sults may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Lundbeckâs Management believes that the following estimates, assumptions and judgements are signif-icant for the Sustainability Statements. Value Principal Key estimates, assumptions and judgements chain Page accounting estimation policy Estimating of emissions where supplier data is unavailable is based Scope 3 GHG emis-on emission factors for financial expenditures and purchased prod-sions: Cat.1: Pur-ucts. Lundbeck includes value chain estimations from indirect sources Yes 82-84 chased goods and in the accounting of Gross indirect (Scope 3) GHG emissions, as speci-services fied in the accounting policy. Lundbeck is continuously working to en-hance the quality of value chain data. Estimating the number of patients potentially exposed to a specific Patients reached Lundbeck drug or treatment over a one-year period, as specified in No 124 the accounting policy. Donated treatment Estimating the number of patients potentially reached through in low, middle in-Lundbeckâs medicine donation program over a one-year period, as No 124 come countries specified in the accounting policy. The median employee is identified based on base salary, after which CEO pay ratio their total remuneration is used to calculate the CEO pay ratio, as No 112; 114 specified in the accounting policy. Annual base pay levels are used in this calculation due to limited data Gender pay gap No 112-113 availability for hourly pay levels, as specified in the accounting policy. Sustainability due diligence How our key stakeholders inform Lundbeckâs strategy and business model Key stakeholders Engagement approach and purpose Outcome from engagement ⢠Patient perspectives included in R&D, trial designs, and evalua-⢠Patient feedback sessions. tion strategies. Patients ⢠âLet the patient speakâ events to gather insights for innovation and awareness. ⢠Improved treatments. ⢠Surveys and collections of patient experience data. ⢠Improved patient outcomes. ⢠Education for healthcare professionals. Healthcare ⢠Operational excellence and compliance with regulations. ⢠Compliance with global procedures, laws, and industry regulations. professionals ⢠Documentation of the value of our medicines. ⢠Increased access to treatment. ⢠Commercial partnerships with other companies to develop and market medi-⢠Promotion of equitable accessibility. cines, e.g. contract research organizations conducting research studies and es-⢠Climate considerations integrated into clinical trials. Partners tablishing evidence for new drug candidates. ⢠Engagements to improve health equity including long-term partnerships with global organizations such as NGOs, academia, and patient advocacy groups. ⢠Ongoing communication via roadshows, meetings, and conferences. ⢠Improved alignment of strategy with shareholders views and Investors and ⢠Webcasting of general meetings and access to reports. feedback. shareholders ⢠General Assembly. ⢠Regular surveys (i.e., The Our Voice). ⢠Action plans for improvement. ⢠Dialogues on wellbeing and personal development. ⢠Implementation of new processes. ⢠Work councils. ⢠Addressing concerns raised about potential breach of Code of Employees ⢠Employee-elected board members. Conduct. ⢠Compliance Hotline. ⢠Ombudsmen. ⢠On-site supplier audits and assessments. ⢠Action plans with corrective actions for suppliers and third par-Workers in the ⢠Compliance Hotline. ties. value chain ⢠Addressing concerns raised about potential labour or human rights impacts. 1 An overview of the core elements of our due diligence processes can be found in appendix â Statement on due diligenceâ (page 143) . 1Lundbeck's sustainability due diligence processesAs a global pharmaceutical company, Lundbeck oper-ates in highly monitored and regulated environments. This entails compliance with pharmaceutical regula-tions, which mandate certain due diligence proce-dures, including how to manage the potential nega-tive impacts on patients, people, and the environment. These processes encompass the Health, Safety, and Environment Management System, the Product Qual-ity Management, and Product and Patient Safety pro-cesses and numerous other âGood Practiceâ (GxP) pro-cesses. Engagement to understand the interests and views of key stakeholders is part of many of these pro-cesses, which we use to inform our strategy and busi-ness model. While multiple operational due diligence processes are embedded in the work of key business functions, as specified in our topical ESRS disclosures, Lundbeck has identified the actions needed to advance other as-pects of sustainability due diligence in the coming years in preparation for compliance with the Corpo-rate Sustainability Due Diligence Directive (CSDDD). Environment Samantha, living with Migraine In this section 74 Climate change 85 Pollution 91 Resource use & circular economy 97 Reporting according to the EU Taxonomy Climate change Lundbeck aims for net-zero emissions by 2050 to mitigate our carbon footprint and the related risks to our business. IRO name IRO type Value chain Upstream Own operations Downstream Greenhouse gas emissions leading îó°£ó°£ îó°£ó°£ îó°£ó°£ Actual negative impact to climate change Damage to facilities from wild îó°£ó°£ îó°£ó°£ îó°£ó°£ Physical financial risk weather events See further details at page 65. Lundbeckâs Transition Plan Lundbeck is committed to making the necessary reductions in emissions across the entire value chain to mitigate the negative impacts of climate change and to achieve climate neutrality by 2050. This com-mitment is supported by our Transition Plan (li nk). Launched in 2023, the Transition Plan outlines Lundbeckâs GHG emission reduction targets (see page 76), which are approved by the Science Based Targets initiative (SBTi) and are compatible with lim-iting global warming to 1.5â. Decarbonization levers Lundbeck has identified five main decarbonization levers to achieve climate neutrality, namely: Energy in own operations Sustainable sourcing Optimization and circularity Greening logistics Cleaner travel In the Transition Plan, each lever is described in de-tail, including the actions that Lundbeck plans to take in each area to achieve 90% reduction of emis-sions by 2050, with the remaining 10% of emissions to be neutralized through carbon removals. Carbon credits will be used exclusively for neutralizing resid-ual emissions or financing additional climate mitiga-tion efforts beyond Lundbeckâs science-based tar-gets. These will not count as emission reductions to-wards Lundbeckâs near- or long-term targets and willbe recorded separately in the carbon inventory to avoid double counting. Only carbon credits certified to recognized quality standards will be utilized, with valid certifications disclosed in our reporting. The Transition Plan is available at www.lundbeck.com, and the planned actions it en-tails are further detailed on page 76. Transition Plan embedded in our strategy With the endorsement of Lundbeckâs Climate Steer-ing Committee and the Executive Management, along with the Board of Directorsâ oversight on pro-gress, the Transition Plan drives decisions on invest-ments related to achieving Lundbeckâs climate tar-gets. To ensure the alignment of the Transition Plan with Lundbeckâs overall business strategy, the status of the targets and actions is reported to the Climate Steering Committee three times a year and quarterlyto Executive Management. As part of the annual budget planning process, each initiative in the Transition Plan is presented and, where relevant, ap-proved by the Climate Steering Committee. Our approach (policies) Lundbeckâs Position on Climate Change (link) and the Health, Safety and Environment (HSE) Policy (link) constitute Lundbeckâs corporate climate policy. The Position on Climate covers Lundbeckâs commitment to climate action, detailing the future climate-related challenges and opportunities Lundbeck intends to address, while the HSE Policy includes, among other topics, the actions Lundbeck takes to protect the en-vironment (further details on the HSE Policy can be found on page 86). Both documents address Lundbeckâs global operations and cover its activities to address climate issues in the value chain. Lundbeckâs climate policy addresses: ⢠Ambitions for reducing scope 1, 2, and 3 GHG emissions. ⢠Implementation of Transition Plan towards net zero emissions, addressing climate change mitiga-tion. ⢠Increasing the use of renewable energy, especially through power purchase agreements. ⢠Application of energy efficient technology, particu-larly in chemical and pharmaceutical production. Through the implementation of its climate policy, Lundbeck supports the intentions of the European Federation of Pharmaceutical Industries and Associ-ationsâ white paper on climate and the UN Sustainable Development Goal (SDG) 13 (Climate Ac-tion). In addition, Lundbeck follows the GHG Protocolwhen preparing GHG inventory and calculations, andSBTi guidance when developing targets. Lundbeckâs Executive Management has the overall responsibility for the climate policy, supported by the Climate Steering Committee. The Corporate Health, Safety and Environment department is re-sponsible for reviewing and updating Lundbeckâs cli-mate policy, thereby including the latest scientific knowledge and expectations from relevant external stakeholders such as the EU, SBTi, and other climate NGOs, investors, and local authorities. The climate policy documents are accessible on Lundbeckâs website and on the global intranet. Lundbeck is not excluded from the EU Paris-aligned Benchmarks. In 2024, Lundbeck has not conducted aqualitative assessment of the potential locked-in GHG emissions nor has Lundbeck pursued plans for EU Taxonomy alignment. These areas will be subject to further investigation in the future. Actions To meet the objectives of Lundbeckâs climate policy and Transition Plan, Lundbeck acts in line with five identified decarbonization levers: Energy in own operations (Scope 1 & 2) Since 2006, Lundbeck has minimized energy con-sumption by optimizing its procedures and modern-izing its equipment. In Denmark, this has included using 100% renewable electricity since January 2022 as well as progressively switching from fossil to re-1newable fuels. In the beginning of 2025, Lundbeck will sign a power purchase agreement securing re-newable electricity at our production site in Italy. For the remaining European sites, including sales sub-sidiaries, Lundbeck guarantees of origin have se-cured 100% use of renewable electricity as of January2025. Gradually, all Lundbeck sites worldwide, in-cluding subsidiaries, will be supplied by renewable energy sources, thus reducing emissions by 99% in 2050 compared to 2019. Sustainability sourcing (Scope 3) Scope 3 emissions from purchased goods and ser-vices (e.g., clinical trials, consultancies, marketing, and machinery) are the largest contributors to Lundbeckâs carbon footprint. Therefore, collabora-tion with suppliers around carbon reductions is crucial to achieve Lundbeckâs climate targets. Through contractual commitments to use renewableelectricity in operations or to establish science-basedtargets, Lundbeck encourages its suppliers to reducetheir emissions and to deliver emission data to Lundbeck annually, which will improve emissions calculations and reporting process. As of 2024, Lundbeck has signed agreements with 51 suppliers to use renewable electricity. It is estimated that, when all Lundbeckâs suppliers of purchased goods and services have made and fulfilled contractual commitments to use renewable energy, indirect emissions will be reduced by 66% in 2050. Optimization and circularity (Scope 3) Lundbeck procures raw materials and components from around the world for use in production at its fa-cilities. To reduce the indirect emissions (scope 3) that result from this product input, Lundbeck followsgreen chemistry principles when designing and opti-mizing new chemical synthesis and acts to reduce raw material consumption, optimize yield, and sub-stitute to less hazardous chemicals. Accordingly, Lundbeck recycles solvents used in chemical produc-tion, thus reducing the amount of new procured sol-vents and their related indirect carbon emissions. In 2024, Lundbeck recycled 62% of organic solvents used in chemical production that were suited for re-covery. In 2023, Lundbeck also approved an invest-ment in a new recycling unit that will increase the solvent recycling percentage, to support our ambi-tion to recycle approximately 85% of solvents used inchemical production by 2030. Further, when devel-oping new products, Lundbeck explores possibilities within eco-design and circularity. In addition, the supplier engagement initiative as specified under âSustainable sourcingâ will contribute to further re-ductions. By implementing all these initiatives, scope3 GHG emissions from purchase of raw materials to production are expected to be reduced by 75% by 2050. Greening logistics (Scope 3) Lundbeck is in the process of reducing scope 3 emis-sions from the upstream transportation of goods and services and from the downstream distribution of products. This is mainly accomplished by transi-tioning from airborne to seaborne transportation. Further, as suppliers gradually shift to greener trans-portation solutions powered by electricity or sustain-able fuels, Lundbeck is committed to choosing these less carbon-intensive options. From 2019 to 2024, Lundbeck has managed to reduce emissions from distribution by 33% and expects to reach a reduction of at least 36% by 2050. Cleaner travel (Scope 1 & scope 3) Emissions reductions related to Lundbeckâs car fleet and business travel are targeted by gradually transi-tioning to more energy efficient-cars, including Elec-trical Vehicles (EVs), and by developing travel policiesthat support greener travel. For instance, Lundbeck has initiated a travel policy that encourages its em-ployees to minimize travel by leveraging digital solu-tions to stay connected, as well as to move towards less carbon-intensive options when traveling. Addi-tionally, Lundbeck promotes climate awareness re-garding travel by setting targets and monitoring travel data where possible. From 2019 to 2024, emis-sions from Lundbeckâs car fleet and business travel have been reduced by 37% and 12%, respectively. By 2050, the identified initiatives are expected to reducerelated emissions by at least 75%. Towards zero emissionsEnergy in own operations Sustainable sourcing Optimization and circularity Greening logistics Cleaner travel By 2025By 2030By 2035By 2040By 2050100% renewable electricity 100% renewable electricity 100% renewable energy in Renewable electricity Renewable energy used in the EU used in the US scope 1 at all production implemented worldwide implemented worldwide sites Emissions from business Electric vehicles exclusively Electric vehicles exclusively Emissions from business Sustainable fuel used in all travel reduced by 25% used in DK fleet and min. used in the EU and the US travel reduced by 40% air, sea, and road logistics 50% used in the EU and fleets and min. 30% in rest the US of world Air logistics moved to sea Sustainable fuel used in all Sustainable fuel used in Sustainable fuel used in all Renewable energy used by logistics on longest routes air logistics 50% of sea logistics sea logistics all suppliers Sustainable fuel used in Renewable electricity used Emissions from packaging Renewable electricity used Upscale known activities and finished goods 50% of air logistics by top 300 suppliers by all suppliers and explore new initiatives reduced by 60% Renewable electricity used 85% of solvents recycled in Offset residual emissions by carbon removals by top 50 suppliers chemical production Targets In the beginning of 2024, Lundbeck had two 1.5°C 1 aligned targetsderiving from our Sustainability Strategy. During the year, in line with the 1.5°C business am-bition pledge guidance, Lundbeck received SBTi ap-proval for a new set of Net-Zero targets - see table below. Furthermore, with the implementation of 2the ESRS requirements, an additional set of target values covering the period 2019-2030 was defined (see E1-6 table, page 82). In 2024, scope 1 & 2 emissions have decreased by 38% compared to 2019. This means that Lundbeck remains on track to meet its scope 1 & 2 Net-Zero SBTi-approved target. Conversely, our scope 3 emis-sions have increased by 18% compared to 2019. Ad-ditional initiatives on supplier engagement and business travel are being evaluated to reduce scope 3 emissions. Lundbeckâs targets are updated at least every five years in line with the SBTi guidance. Progress against our targets is tracked quarterly and is pre-sented to the Climate Steering Committee three times per year. Net-Zero SBTi-approved targets Target emissions Baseline Baseline emissions Target Progress against Target (tCO2e) & reduction (%) year (tCO2e) year target to date (%) from 2019 Net Zero Near-Term 2019 43,992 2029 25,516 27,497 Target, scope 1 & 2 (42%) (38%) Net Zero Near-Term 2019 113,761 2029 85,320 134,154 Target, scope 3 (25%) 18% Net Zero Long-Term 2019 157,753 2050 15,775 161,651 Target (90%) 3% Transition Plan milestones Progress is consistently being made towards the milestones outlined in our Transition Plan. Lundbeck remains on track to meet the majority of its 2025 milestones. For scope 1 & 2 emissions, Lundbeck anticipates achieving the expected emission reductions. While most milestones related to scope 3 emissions are ex-pected to be met, the overall reduction of these emissions is not progressing as quickly as antici-pated. Lundbeck expects to meet its 2025 milestone of 100% renewable electricity used in the EU (energy in own operations). Emissions from business travel are reduced by 12% compared to baseline, correspond- -ing to a slight delay in expected progress (cleaner travel). All possible logistic routes have been moved to sea and the use of sustainable fuel is being inves-tigated (greening logistics). Additionally, with 51 top suppliers signing agreements for renewable electric-ity use out of 115 suppliers in total, Lundbeck has achieved its expected Sustainable Sourcing mile-stone. This initiative has successfully decoupled emissions from spending. However, the decoupling has not been sufficient to offset the growth in Lundbeckâs business so far. Expected reduction from 2019 baseline Achieved FY24 GHG Decarbonization lever Scope 2025 2030 2035 2040 2050 reduction (%) Energy in own operations Scope 1 & 2 41% 69% 82% 95% 99% (33%) Optimization and circularity Scope 3 0% 8% 22% 22% 75% 0% Greening logistics Scope 3 11% 26% 28% 33% 36% (33%) Sustainable sourcing Scope 3 22% 39% - 56% 66% 30% Cleaner travel: ⢠Business travel Scope 3 25% - - 40% - (12%) ⢠Transition of fleet to EVs Scope 1 - 23% 28% - - (37%) 1 Reduce carbon footprint across own operations, supply, and distribution in line with our 15-year 1.5â aligned target: scope 1 and 2 CO2e emissions by 65% in 2034 compared to 2019 and scope 3 CO2e emissions by 40% in 2034 compared to 2019. 2 ESRS E1-4 paragraph 34 (d). 3 The 2030 targets account for an additional 4,2% reductions for scope 1 an 2 and 2,5% for scope 3, corresponding to the required SBTI-targets. Basis for target setting Lundbeckâs targets have been verified and approved by SBTi and follow an absolute contraction method, in accordance with the SBTi guidance. A sectoral de-carbonization pathway for the pharmaceutical indus-try is not followed, as there is not yet one defined by SBTi. Furthermore, the targets cover seven green-house gases included in the Kyoto Protocol (carbon dioxide [CO2], methane [CH4], nitrous oxide [N2O], hydrofluorocarbons [HFCs], perfluorocarbons [PFCs],sulfur hexafluoride [SF6], and nitrogen trifluoride [NF3]). Every year, Lundbeck revises the carbon footprint model used for calculating emissions to improve the validity and quality of our carbon calculations, which are used for tracking progress towards targets. This enables the incorporation of relevant updates in emissions calculations, emission factors, supplier data, and baseline recalculation. According to the SBTi guidelines, all targets are set against the base-line year 2019, as the financial year preceding the period in which the targets were developed. Further details on the contributions of the decarbon-ization levers towards Lundbeckâs GHG emissions re-duction targets are specified on page 76. Assessing climate risks Process to identify and assess impacts, risks, and opportunities At Lundbeck, several internal processes enable the identification of actual and potential climate-related impacts, risks, and opportunities. This includes the ongoing assessment of emissions and potential emissions sources in own operations and across the value chain, the climate scenario analysis, the annualBusiness Impact Analysis (BIA) report (see page 80) for identifying physical climate-related risks, and continuous internal evaluation and identification of opportunities by subject matter experts. Scenario analysis A scenario analysis is performed for two climate sce-narios to identify transitional and physical risks. The scenarios take into consideration a diverse range of factors such as carbon pricing, fuel availability, policyregulation, technology, reputation, production and supply chain disruptions, physical damage to assets,as well as changes in product demand. The analysis is based on guidance from the Task Force on Cli-mate-Related Financial Disclosures (TCFD) and the Carbon Disclosure Project (CDP). The time horizons of the scenario analysis for both physical and transition risks span 1-10 years, therebyincluding short, mid, and long terms. By covering both a net-zero (i.e., NZE 2050) and âbusiness as usualâ (i.e., Representative Concentration Pathway (RCP8.5) scenarios, plausible risks and uncertainties are covered. The time horizons align with Lundbeckâsclimate targets and the financial planning horizon, and support the climate-related assumptions made in the Financial Statements. Resilience analysis A resilience analysis was conducted in 2024 based onthe scenario analysis. The scope of the resilience analysis includes Lundbeckâs own operations and value chain and uses time horizons aligned with both the scenario analysis and the climate targets. While there is currently limited data on the upper ti-ers of the value chain, potentially leading to reduced representation of related physical and transitional risks, our understanding of the upstream value chainis aimed to be increased over time. Lundbeck uses the results of the resilience analysis to integrate milestones into the Transition Plan, adapt strategy, and plan mitigating actions. Transitional risks The International Energy Agencyâs Net Zero Emis-sions by 2050 Scenario (NZE 2050) shows a pathway to achieving net-zero by 2050 and limiting global temperature rise to 1.5°C. The NZE 2050 is used to identify climate-related transition events along Lundbeckâs own operations and value chain, and how these could result in transitional risks and op-portunities. Transition events are identified based onreputational, financial, market, or regulatory risks and opportunities at both company and asset level. The identification of transitional risks is also supported by Lundbeckâs quarterly process to iden-tify emerging legislation and social and reputational trends. Assets and business activities are assessed based on their exposure to the identified transition events, taking into consideration likelihood, magnitude, and duration. Specific assets or business activities that are incompatible with a climate-neutral economy or need significant efforts to transition have not been identified. Under the NZE scenario, carbon pricing will be stra-tegically important, fossil fuel use will decrease sig-nificantly, and renewable energy deployment will rapidly increase. Therefore, actions and related mile-stones to adapt to these transitional risks have been included in the Transition Plan according to three relevant drivers â increased carbon pricing, limited use of fossil fuels, and increased sales of electric ve-hicles. Physical risks The âbusiness-as-usualâ RCP8.5 climate scenario, which is a high-emission scenario predicting an aver-age 4°C rise in temperature, is used by Lundbeck to identify climate-related hazards and related physical risks. Lundbeckâs assets and business activities are screened according to their exposure to such risks, with physical risk scenarios assessed according to lo-cation, exposure to climate-related risks, and the likelihood, magnitude, and duration of the climate hazards. The identification of physical risks is also supported by the annually updated BIA report, which identifies business interruption risks and mitigation ap-proaches over time horizons, aligned with the DMA process. According to the RCP8.5 climate scenario, there is an increased risk of extreme weather, including wild-fires and flooding. Therefore, Lundbeck has planned mitigation actions, including dual warehouse solu-tions in an area determined to be at high risk. Climate change adaptation â a physical risk While the current policy, actions, targets, and transi-tion plan focus on climate mitigation and energy, Lundbeck recognizes the importance of addressing climate change adaptation in relation to physical risks. This aspect is addressed through Lundbeckâs company-wide risk management processes, includ-ing Lundbeckâs BIA report. As part of the BIA pro-cess, adaptation initiatives are defined, and imple-mentation plans are developed in the relevant parts of the organization. Further, physical climate-related risks at Lundbeck sites and in the value chain have been assessed as part of the BIA report since 2018. Material risks are reported in Lundbeckâs risk management process and are monitored by the risk management organi-zation, including reporting to Executive Managemenand the Board of Directors. Mitigating actions are defined for all material risks, with no associated spe-cific targets. E1-5 - Energy consumption and mix 1Energy consumption and mix Unit 2024 2023Fuel consumption from coal and coal products MWh - - Fuel consumption from crude oil and petroleum products MWh 499 1,718 Fuel consumption from natural gas MWh 19,217 18,790 Fuel consumption from other fossil sources MWh 18,075 19,496 Consumption of purchased or acquired electricity, heat, steam, and cool-MWh 8,941 10,049 ing from fossil sources Total fossil energy consumption MWh 46,732 50,053 Share of fossil sources in total energy consumption % 42 44 Consumption from nuclear sources MWh 6,628 6,620 Share of consumption from nuclear sources in total energy consumption % 6 6 Fuel consumption for renewable sources, including biomass (also com-prising industrial and municipal waste of biologic origin, biogas, renewa-MWh 10,419 9,423 ble hydrogen, etc.) Consumption of purchased or acquired electricity, heat, steam, and cool-MWh 48,043 46,481 ing from renewable sources Consumption of self-generated non-fuel renewable energy MWh 433 - Total renewable energy consumption MWh 58,895 55,904 Share of renewable sources in total energy consumption % 52 50 Total energy consumption MWh 112,255 112,577 Energy intensity based on net revenue Unit 2024 Total energy consumption from activities in high climate impact sec-tors per net revenue from activities in high climate impact sectors MWh/DKKm 5.2 Energy consumption and mix Lundbeck continues to maintain energy consumption levels in line with last year. This stable performance de-rives from a combination of regional developments. Specifically, the energy consumption has decreased in Valby (Denmark), LumsÃ¥s (Denmark) and Valbonne (France), driven by operational optimization, while an in-crease in Padova (Italy) was attributed to the commencement of operations at a new production unit. Gross scopes 1, 2, 3 and total GHG emissions Scope 1 & 2 GHG emissions are at the same level compared to 2023. Scope 1 emissions increased by 1%, primarily driven by higher emissions from the US. car fleet offset by reductions at production sites. Scope 2 emissions (market-based) decreased by 1%, mainly due to the sterile workshop shutdown and energy optimi-zation at the Valbonne site. In 2024, scope 3 GHG emissions increased by 8% due to higher activity and spending in purchased goods and services, as well as increased business travel. The rise in purchased goods and services reflects increased activity and spending aligned with business growth. Emissions from business travel also increased, driven by more travel activity, particularly for flights and hotel stays. 1 Comparative figures for all lines have been restated to reflect Lundbeckâs updated accounting policies following the implementation of CSRD. The comparative figures for 2023 are not subject to limited assurance. E1-6 - Gross scopes 1, 2, 3 and total GHG emissions Retrospective Milestones and targets Annual % Base year target/Base 1 Gross Scopes 1, 2, 3 and total GHG emissions Unit 2019 20232024 % 2025 2030 2050 year Scope 1 GHG emissions Gross scope 1 GHG emissions tCO2e 29,175 20,191 20,409 1 Percentage of scope 1 GHG emissions from regulated emission trading schemes % Scope 2 GHG emissions Gross location-based scope 2 GHG emissions tCO2e 15,151 12,727 11,525 (9) Gross market-based scope 2 GHG emissions tCO2e 14,818 7,173 7,088 (1) Scope 1 & 2 GHG emissions Total scope 1 & 2 GHG emissions (location-based) tCO2e 44,326 32,918 31,934 (3) Total scope 1 & 2 GHG emissions (market-based) tCO2e 43,993 27,364 27,497 0 32,906 23,668 4,399 4.2 Significant scope 3 GHG emissions Cat.1: Purchased goods and services tCO2e 86,637 103,891 112,491 8 Cat. 4: Upstream transportation and distribution tCO2e 10,542 7,448 7,103 (5) Cat. 6: Business travel tCO2e 16,582 12,999 14,560 12 Total gross indirect (scope 3) GHG emissions tCO2e 113,761 124,338 134,154 8 96,696 82,476 11,376 2.5 Total GHG emissions Total GHG emissions (location-based) tCO2e 158,087 157,256 166,088 6 Total GHG emissions (market-based) tCO2e 157,755 151,702 161,651 7 Emissions outside of scopes Biogenic emissions tCO2e 2,223 2,594 2,831 9 GHG intensity based on net revenue Unit 2024 Total GHG emissions (location-based) per net revenue tCO2e/DKKm 7.7 Total GHG emissions (market-based) per net revenue tCO2e/DKKm 7.5 1 Comparative figures have been restated to reflect Lundbeckâs updated accounting policies following the implementation of CSRD and to reflect changes in estimates. The comparative figures for 2023 are not subject to limited assurance. Accounting policies Energy Consumption Energy consumption for Lundbeckâs own operations is measured as the consumption of power, heat, and fuel, monitored by building-specific meter readings or invoices and estimation (6%) where primary data is un-available. Renewable consumption is measured as the consumption from power purchasing agreement, cer-tificates, and supplier information. The share of renewable sources in total energy consumption is calculated based on the percentage of the total renewable energy consumption relative to total energy consumption. Energy Intensity Lundbeckâs energy consumption and revenue, from the financial statement are derived from activities in high climate-impact sectors. Lundbeck is engaged in the research, development, production, and sale of pharma-ceuticals for the treatment of psychiatric and neurological disorders, classified under the NACE code. The en-ergy intensity is reported as MWh/annual revenue in DKK million. Scope 1 GHG emissions Direct scope 1 emissions include greenhouse gas (GHG) emissions related to the consumption of gas, oil, and refrigerants used in production (e.g., emissions associated with fuel combustion in boilers, furnaces, and vehi-cles). All consumed energy is monitored by building-specific meter readings or invoices and estimation (1%) where primary data is unavailable. The quantity of consumed energy sources is multiplied by relevant emission fac-tors provided by the UK Department for Environment, Food & Rural Affairs (DEFRA 2023). Emissions data from Lundbeckâs owned or controlled vehicle fleet is provided directly by the associated leas-ing company or calculated based on consumed fuel multiplied by relevant emission factors. Primary data from 73% (2023: 75%) of the company cars is used to extrapolate emissions from Lundbeckâs full fleet activity. Scope 2 GHG emissions Scope 2 emissions includes all indirect emissions related to the generation of acquired and consumed electric-ity and district heating. All consumed energy is monitored by building-specific meter readings, invoices, or estimation (10%) where primary data is unavailable. Scope 2 GHG location-based The emissions are reported as location-based and are derived from consumed energy multiplied by relevant location-based emission factors provided by DEFRA 2023. Scope 2 GHG market-based The emissions are reported primarily as market-based emissions, where consumed scope 2 energy is multi-plied by market-specific emission factors provided directly from the energy supplier. Where market-specific emissions are unavailable, the best available location-based emission factors provided by DEFRA 2023 are used for the reporting in line with the GHG Protocol hierarchy. Lundbeck purchases bundled certificates of origin derived from our PPA agreement that covers 100% of the electricity consumption in Denmark (two sites). Bundled certificates of origin covering 40% of the total energy consumption in scope 2. At two of Lundbeck's sites (Krakow and La Jolla), unbundled certificates are bought by the landlord of the facility. The unbundled certificates constitute 2% of the total energy consumption (excl. subsidiaries) in scope 2. Scope 3 GHG emissions Scope 3 includes and accounts for other indirect emissions within Lundbeckâs value chain that are not ac-counted for elsewhere. Lundbeck has identified three significant categories out of the 15 defined by the GHG Protocol for scope 3 emissions. The significant categories are: Category 1: âPurchased Goods and Servicesâ, Category 4: âUpstream Transportation and Distributionâ, and Category 6: âBusiness Travelâ. The reported scope 3 emissions align with Lundbeckâs SBTi target boundary. Scope 3 GHG Category 1: Purchased Goods and Services Purchased Goods and Services include CO2e emissions related to all expenditures from external suppliers, excluding those from i.e., tax and VAT. In 2019, Lundbeck established the SBTi target boundary, which excludes approximately 12% of the CO2e emis-sions in this category. CO2e emissions related to purchased services are calculated based on financial expend-itures in USD, multiplied by relevant spend-based emission factors provided by the U.S. Environmentally-Ex-tended Input-Output Models (USEEIO) database. CO2e emissions related to purchased products are esti-mated based on acquired quantities, multiplied by appropriate activity-based emission factors from the Ecoinvent database. Currently, 24% (2023: 29%) of the data in this category is based on suppliersâ emission data reported directly to Lundbeck or from their CDP disclosures or sustainability reports. Scope 3 GHG Category 4: Up-stream Transportation and Distribution Upstream Transportation and Distribution include CO2e emissions related to all purchased (non-owned) transport and distribution services. This encompasses inbound logistics (from tier 1 suppliers), transport be-tween Lundbeck sites in Valby (Denmark) and LumsÃ¥s (Denmark), and outbound logistics. A selection of Lundbeckâs key logistic suppliers, provides specific emissions data for their activities related to Lundbeck and 48% (2023: 50%) of the data is based on primary data. Where this data is unavailable, emissions are calculated based on financial spending in USD, multiplied by relevant spend-based emission factors sup-plied by the USEEIO database. This primarily applies to locally procured logistics services. All emissions related to this category are converted and calculated as well-to-wheel greenhouse gas emissions. Scope 3 GHG Category 6: Business Travel Business Travel includes CO2e emissions from the transportation of employees across the entire group for business-related travel activities. This encompasses emissions released due to employees traveling by air, road, rail, and sea, as well as emissions associated with hotel stays. The CO2e emissions from business-re-lated travel activities are calculated based on the distance traveled and the number of hotel stays, multiplied by relevant emissions factors provided by DEFRA 2023. Data is collected from the Travel Management Compa-nies (TMC) and directly from subsidiaries when the data is not covered by the TMC. In instances where TMC systems provide CO2e calculations (in line with DEFRA), those are to be used directly. Currently, 81% (2023: 80%) of the business travel emissions are provided by TMC and subsidiaries, and the remaining 19% (2023: 20%) are extrapolated. Biogenic emissions Biogenic COâe emissions resulting from the combustion or biodegradation of biomass are disclosed sepa-rately from the scope of GHG emissions. These emissions originate from the use of bio-oil and company cars at Lundbeck. The data is collected from the company car usage and energy consumption, then multiplied by emission factors provided by DEFRA 2023. Total GHG emissions Total GHG emissions, expressed in tonnes of CO2 equivalent (tCO2e), are calculated as the sum of scope 1, scope 2, and scope 3 emissions. GHG intensity GHG intensity is reported as tCO2e/annual revenue in DKK million. The annual revenue is disclosed as part of the Groupâs Financial Statements. Pollution Lundbeck is dedicated to pollution prevention, emphasizing strict compliance and proactive emission management. We actively monitor and mitigate air, water, and soil pollution while collaborating with suppliers to uphold environ-mental standards. IRO name IRO type Value chain Upstream Own operations Downstream îó°£ó°£ Air pollution Actual negative impact Water pollution from îó°£ó°£ îó°£ó°£ Actual negative impact pharmaceutical residues îó°£ó°£ îó°£ó°£ Soil pollution Potential negative impact îó°£ó°£ PFAS soil pollution Actual negative impact See further details on page 65. Lundbeckâs approach to managing Health, Safety, and Environmental concerns Lundbeck is committed to protecting the environ-ment and believes that a healthy planet is a precon-dition for good health and wellbeing. Lundbeckâs environmental work is governed by our Health, Safety, and Environment (HSE) Policy (link), which is supported by our HSE Strategy (link), Code of Conduct (link), and public position statements on En-vironmental Footprint (link), Climate (link), Water (link), and Biodiversity (link). The HSE Policy supports our commitment to protect-ing the environment and creating a safe and healthy workplace where everyone can thrive and be their best. The policy underscores compliance with legis-lation, prevention of work-related diseases and acci-dents, chemical safety, promotion of circular econ-omy principles, and minimization of emissions and waste. Being set and approved by Lundbeckâs HSE Council and Executive Management, the policy ap-plies to all of Lundbeckâs own operations, from sales subsidiaries to production sites. The operational implementation of the HSE Policy at all four production sites is guided by Lundbeckâs HSE management system. This system encompasses both the HSE Policy and HSE Strategy, as well as other internally available corporate and local guide-lines and procedures. The HSE management system is certified according to ISO 14001 and ISO 45001, corresponding to international standards of envi-ronmental management and occupational health and safety, respectively. As an integral part of the HSE management system, the HSE Policy is designed in compliance with these ISO standards. Lundbeckâs HSE management system is informed by scientific knowledge and expectations from relevant external stakeholders such as the EU, national au-thorities, customers, investors, and industry associa-tions. The system also requires all production sites to conduct a local stakeholder analysis to ensure that the demands and expectations of relevant in-ternal and external stakeholders â including employ-ees, neighbors, landowner associations, and rele-vant authorities â are covered. Internal audits of the sites, external audits, and regular inspections from authorities help ensure that the stakeholder expec-tations are considered in the implementation of Lundbeckâs HSE management system. The HSE Policy is also part of the commitments and expectations of employees and suppliers as stated in Lundbeckâs Code of Conduct (see page 131). Sup-pliers and collaboration partners across the value chain are obliged to observe the principles set out in our Code of Conduct and adhere to local regulations and standards. In practice, this means that suppliers and collaboration partners are expected to take an active role in protecting the environment. The HSE Policy and management system underpin our approach around Climate change (page 75), Pol-lution (page 86), Resource use and circular economy (page 92), as well as Health and Safety (page 103) and Mental wellbeing (page 106). Our approach (policies) Lundbeckâs approach to the prevention and manage-ment of pollution in its own operations is part of our HSE Policy (link). This policy broadly addresses Lundbeckâs commitments to protect the environ-ment, comply with applicable legislation and internal guidelines, and minimize emissions, without specifi-cally accounting for Lundbeckâs pollution-related im-pacts, which are described on page 65. The HSE Pol-icy broadly covers the pollutants and substances rel-evant to Lundbeckâs operations, as further specified below. Operationally, the work to prevent and manage pol-lution at Lundbeckâs production sites is carried out in accordance with applicable regulations and through the processes and procedures set out within the HSE management system. The HSE Policy and manage-ment system do not apply to impacts and risks in the value chain. Lundbeck expresses its expectations to suppliers to follow the environmental principles in its Code of Conduct. Further information on the HSE Policy and management system is detailed in the box to the left. Actions To fulfill the commitments of Lundbeckâs HSE Policy towards environmental protection and ensure strict compliance with legal requirements, Lundbeck acts in several ways to control pollution in its own opera-tions. Lundbeck prioritizes substituting hazardous sub-stances in product development and production whenever feasible. This commitment is empha-sized in the HSE Policy and implemented through the HSE management system. Air pollution Organic solvents play a key role in Lundbeckâs pro-duction of pharmaceutical products. As a result of their use, these solvents end up as emissions of non-methane volatile organic compounds (NMVOC) to the air. Accordingly, the management of NMVOC is the focus of Lundbeckâs efforts to control air pollu-tion. Additionally, many of the solvents used in our pro-duction processes are classified as substances of concern. This underscores the importance of manag-ing air pollution through NMVOC cleaning technolo-gies, both internally and in collaboration with exter-nal partners. At the sites that use organic solvents (i.e., LumsÃ¥s (Denmark), Padova (Italy), and Valby (Denmark)), the measurement, prevention, and/or control of VOC emissions is conducted on an ongoing basis. Owing to their higher use of solvents, the active pharma-ceutical ingredient (API) production sites in LumsÃ¥s and Padova are each equipped with a Regenerative Thermal Oxidizer (RTO), which is the best available technology for cleaning the air at the primary NMVOC emission point. Additional measurements ofdiffuse emissions and calculation of total NMVOCs from labs are also conducted at both sites. The RTOs have drastically reduced NMVOC emissions at both production sites since their installations in LumsÃ¥s in 2020 and in Padova in 2004. In Valby, estimations of NMVOCs emitted into the air are calculated and monitored for all buildings used in production and R&D. Water pollution from pharmaceutical residues Lundbeck acknowledges stakeholder concerns about pharmaceutical residues in the environment. The po-tential source of pollution from APIs is twofold â it may occur as emissions from pharmaceutical pro-duction processes, as well as residues from the con-sumption of medicines by patients worldwide. At Lundbeckâs production sites, the HSE manage-ment system addresses the risk of pollution from API production as part of a comprehensive approach to preventing pollution. This includes minimizing spills, ensuring strict compliance with legal environmental permits, and applying appropriate cleaning technol-ogies. Furthermore, Lundbeck tests the environmental ef-fects of new medicinal products and design pro-cesses with the least possible environmental impact. Based on the test results, disposal of unused medi-cine is evaluated. Information on the waste disposal of unused medicine is added to the product safety leaflet included in the medicine packaging. Lundbeck pursues approaches that balance healthcare needs and environmental considerations in line with EFPIAâs Eco-Pharmaco-Stewardship Initiative to minimize pharmaceuticals in the environment. Regarding pollution stemming from the consump-tion of pharmaceutical products by patients, Lundbeck is working to increasingly understand theimpact of residues potentially resulting from the useof our products. It is our aspiration to use detailed knowledge about active pharmaceutical ingredientsto minimize their environmental impact. Societal ac-tion is taken in the form of wastewater treatment. Methods for municipal wastewater or wastewater from hospitals, which are the biggest point sources for pharmaceutical residues, have been developed and will be implemented in the EU in the coming years. Soil pollution in own operations Lundbeck has procedures in place to address any potential spillages to the soil resulting from our pro-duction processes. Since Lundbeckâs production sitein Valby, Valbonne and Padova are situated in pavedurban areas, the main risk of soil pollution has beenidentified at the site in LumsÃ¥s, where the area is partly unpaved, and the existing infrastructure in-cludes underground pipes. At the LumsÃ¥s site, a comprehensive procedure is in place regarding inci-dent reporting, including information and training on incident categories, responsibilities, and collabo-ration with environmental authorities. Environmental permits require periodic soil sam-pling at specific locations on the site every 10 years, as well as water samples every five years. In the event of soil contamination at LumsÃ¥s, an emer-gency plan is activated in collaboration with local au-thorities. Most spills are promptly resolved, but in the rare cases where complete removal is not feasi-ble, the local environmental authority maps and communicates the contaminationâs existence. Histor-ical pollution incidents from Lundbeckâs production processes have prompted the implementation of the aforementioned preventative measures to control soil pollution, as well as root cause analysis of re-ported events to enhance Lundbeckâs control and prevention process. At the sites with low risk of soil pollution, precaution-ary measures are nevertheless continuously taken depending on the site conditions. Such measures in-clude the strategic placement of absorbent materialsand the inspection and testing of tanks containing solvents or oil. PFAS pollution Pollution from per- and polyfluoroalkyl substances (PFAS) is an issue of international concern. At Lundbeckâs site in LumsÃ¥s, pollution to the soil and water has occurred from the use of PFAS-containing firefighting foam in the factoryâs fire extinguishing system, which was used until 2011 in compliance with applicable law and following recommendations by the fire authorities at that time. Past testing of theextinguishing system and drainage of foam from thesystem onto paved and unpaved surfaces is the cause of the PFAS contamination observed today. The case of PFAS pollution is being managed in ac-cordance with the requirements set by the authori-ties and in line with Lundbeckâs HSE, Compliance andSustainability Policies. Since the pollution was de-tected, Lundbeck has been engaged in a close dia-logue with the Danish Environmental Protection Agency (EPA) regarding the mapping and remedia-tion of the pollution. Lundbeck has also continuouslyengaged with neighbors and the municipality to ad-dress concerns in the local community, including fa-cilitating communication channels for inquiries and concerns and holding informational meetings with neighbors, landowner associations, and other stake-holders over the past several years. Based on the performed investigations of the PFAS pollution in LumsÃ¥s, two hotspots for PFAS contami-nation have been identified; one located where fire extinguishing foam was used, and the other hot spotclose to a wastewater drain that lead the foam away from the system after a fire drill was performed. Lundbeck has worked actively and dedicatedly with the investigations and has performed the agreed measurements and analyses required by EPA, deliv-ering all requested reports and risk assessments andcomplying with the agreed requirements and sched-ules set by the authorities. Mitigating actions include: ⢠Further sampling and delimitation of the area to clarify extent of contamination; ⢠Assessment of actions to reduce the risk of future spread of contamination; ⢠Installation of a water treatment system to clean the contaminated underground area; Additionally, Lundbeck has proactively taken steps to reduce PFAS levels. In agreement with the authori-ties, Lundbeck has removed large amounts of soil in an area with elevated PFAS concentrations, remedi-ating a significant proportion of the identified con-tamination in 2024. As remediation and mitigating actions advance, our knowledge and understanding of PFAS pollution will continue to evolve, and we are committed to continuing to take further steps to reduce PFAS levels in the area. Soil pollution in the value chain Lundbeck acknowledges its extended producer re-sponsibility towards the risk of soil pollution in the value chain due to the potentially inadequate man-agement of soil pollution by chemical suppliers. This risk is not currently addressed by the HSE manage-ment system, as its focus is on Lundbeckâs own oper-ations. However, critical or material partners and suppliers are contractually required to adopt Lundbeckâs Third Party Obligations, which bind them to adhere to relevant sections of Lundbeckâs Code of Conduct, including that on HSE considerations, as well as to ensure that applicable HSE-related laws, regulations, guidelines, and industry standards are complied with. To assess the suitability of engaging chemical suppli-ers located in countries that are deemed high-risk, Lundbeck has in place a due diligence process that includes physical audits of HSE factors, including pol-lution, environmental incidents, and incident man-agement. Though this process is not part of a dedi-cated action plan, it is an integral component of Lundbeckâs decision to engage in new contractual re-lationships with suppliers, including those at higher risk of polluting the soil. Avoiding pollution-related incidents Avoiding environmental incidents and emergency situations (i.e., to air, water or soil pollution) is a pri-ority for Lundbeck. Ensuring that processes are in place to manage and limit the impact on people and the environment in the event an incident occurs is a staple of Lundbeckâs HSE management system. The HSE management system includes site-specific emergency plans to identify potential incidents, de-tail appropriate actions to prevent and mitigate envi-ronmental impacts, and ensure regular testing and evaluation of emergency preparedness. In the case of incidents, the system ensures reporting, investiga-tion, and the prevention of recurrence. Targets Although Lundbeck does not have specific sustaina-bility targets established in relation to pollution man-agement, the effectiveness of Lundbeckâs HSE man-agement system and actions regarding pollution are tracked based on the occurrence of incidents with environmental consequences. Monitoring environ-mental incidents is part of the operational-level due diligence process defined by the HSE system, through which the various risks and impacts related to pollution are identified, evaluated, planned, moni-tored, and communicated. Lundbeck aims to have zero environmental incidents with environmental consequences each year. In the case incidents occur, the details are utilized to assessfuture risk, plan strategies and actions to mitigate impacts, and inform managers and employees throughout the organization. Incidents are reported to and evaluated by the HSE Council on a quarterly basis. Lundbeck tracks environmental incidents to ensure compliance with both local environmental permits and adherence to ISO 14001 requirements. Any oc-currence of soil pollution is deemed to be an envi-ronmental incident, as under applicable law, no level of soil contamination is permitted. While legal re-quirements allow a certain threshold of emissions to air and water per substance emitted, Lundbeck strives to keep emissions to air and water as far be-low the legal limits as possible. This is achieved for all substances used in Lundbeckâs production processes. In the case that soil pollution occurs or there is a breach exceeding the limits of air and water emissions, procedures ad-dressing environmental incidents under the HSE management system are triggered. E2-4 â Pollution of air, water, and soil Pollution of air, water, and soil Unit 2024 Non-methane volatile organic compounds (NMVOC) Tonne 94 1 Environmental Management Unit 2024 2023Environmental incidents No. 4 7 Environmental incidents with impact on the environment No. - - Environmental near miss No. 38 36 Pollution of air, water, and soil Lundbeck reports on the annual emissions of substances that exceed the thresholds set by the European Pollutant Release and Transfer Register (E-PRTR) regulations. In 2024, non-methane volatile organic compounds(NMVOCs) at Lundbeckâs production site in Padova exceeded the threshold. This reflects the inclusion of dif-fuse emissions in the reported data for the first time, as required by E-PRTR standards in alignment with the ESRS framework. In Padova, chimney emissions are monitored annually through six external measurements of Total Organic Carbon (TOC) concentration and flow. The average TOC mass flow is calculated and multiplied by RTO operating hours to determine total TOC emissions, which are converted into Volatile Organic Compounds (VOC) us-ing a solvent-specific conversion factor that varies annually. Diffuse emissions occur when volatile organic compounds are released into the atmosphere from non-point sources, such as piping systems, during the production process. These emissions are estimated annually using a mass balance approach. Environmental Management In 2024, environmental incidents decreased from seven in 2023 to four. During the same period, environmental near misses increased from 36 to 38. No environmental incidents with an impact on the environment werereported. Accounting policies Pollution of air, water, and soil The reporting of polluting substances encompasses the annual usage in tonne where it exceeds the thresh-olds defined by the European Pollutant Release and Transfer Register (E-PRTR) regulation. The reporting scope includes all Lundbeck entities; however, the reported figures specifically represent production sites where the limits have been surpassed. In 2024, the substance exceeding E-PRTR limits is non-methane volatile organic compounds (NMVOCs) at the Padova site. NMVOCs are organic chemicals, excluding methane, that readily vaporize. NMVOCs have an in-significant global warming potential and are not included in Lundbeck's scope 1 greenhouse gas emissions. At the Padova site, NMVOC emissions are categorized into two sources: direct emissions from the chimney and diffuse emissions. Diffuse emissions are estimated using a mass balance approach, which compares the solvent input in production processes with all identified solvent outputs. Approximately 1% of emissions are directly measured at the chimney, while the remaining 99% are estimated based on prior yearsâ proportional distribution between measured chimney emissions and diffuse emissions. Environmental Management Environmental incidents are recorded in the HSE data system and the number of environmental incidents re-fer to an unintended release to the environment. An environmental incident refers to an event where a substance is released into the environment, resulting in environmental impacts. These incidents are assessed using an internal risk assessment methodology to de-termine their severity and potential consequences. Additionally, they may be reported to regulatory bodies (depending on local terms). Environmental near miss is the number of events involving contained spills that did not release into the envi-ronment, but had the potential to escalate into an environmental incident. 1 The comparative figures for 2023 are not subject to limited assurance. E2-5 - Substances of concern and substances of very high concern 2024 Substances of Substances of very high con-Substances of concern and substances of very high concern Unit concern cern Total amount of substances of concern that are generated or used during Tonne 1,858 35 production or that are procured by main hazard class Human health hazard (hazard class code H3xx) Tonne 502 35 Environmental hazard (hazard class code H4xx) Tonne 328 - Human health & Environmental hazard (hazard class code H3xx & H4xx) Tonne 1,028 - Total amount of substances leaving facilities as emissions, as products, or Tonne 118 2 as part of products Amount of substances leaving facilities as emissions by main hazard class Tonne 91 2 Human health hazard (hazard class code H3xx) Tonne 24 2 Environmental hazard (hazard class code H4xx) Tonne 16 - Human health & Environmental hazard (hazard class code H3xx & H4xx) Tonne 51 - Amount of substances leaving facilities as product, or part of product by Tonne 27 - main hazard class Human health hazard (hazard class code H3xx) Tonne 15 - Environmental hazard (hazard class code H4xx) Tonne - - Human health & Environmental hazard (hazard class code H3xx & H4xx) Tonne 12 - Substances of concern and substances of very high concern Substances of Concern (SoC) and Substances of Very High Concern (SVHC) represents the quantities of SoCs and SVHCs purchased for production processes and those leaving Lundbeck facilities as emissions or as product components. The majority of SoCs and SVHCs leave Lundbeck's facilities as emissions, including liquid waste, which are treated using either internal technologies or specialized external partners. Only about 1% of these substances that are purchased by Lundbeck exit the facilities as product components. Lundbeck uses three substances as part of its products. Opadry contains titanium dioxide, which is classified as carcinogenic in its powdered form but is converted into a non-carcinogenic liquid form during tablet coating. An EU Court ruling is pending to provide further clarification on its status. Vortioxetine is classified as a skin sensitizer, though it does not come into direct contact with the skin due to its coating, and it has potential long-term impacts on aquatic ecosystems. Aripiprazole has properties that may affect fertility, pose risks to unborn children, and is suspected of being carcinogenic. Lundbeck remains committed to product safety and environ-mental responsibility, ensuring that all products and processes are managed responsibly. Accounting policies Substances of concern and substances of very high concern development Substances of Concern (SoCs) at Lundbeck are defined based on the criteria outlined in the annex to the Com-mission Delegated Regulation (EU) supplementing Directive 2013/34/EU. A substance qualifies as an SoC if it meets any of the following criteria: (1) It is identified under Article 57 and Article 59(1) of Regulation (EC) No 1907/2006. (2) It falls within specified hazard classes, including carcinogenicity, reproductive toxicity, endo-crine disruption, or persistent and toxic properties. (3) It negatively impacts the reuse and recycling of materi-als, as outlined in relevant ecodesign requirements. Substances of Very High Concern (SVHCs) are those that meet the Article 57 criteria of REACH and are identified under Article 59(1). SVHCs include carcinogenic, muta-genic, or toxic substances (CMRs) classified as category 1A or 1B, persistent bioaccumulative and toxic (PBT) substances, very persistent and very bioaccumulative (vPvB) substances, endocrine disruptors, or other sub-stances of equivalent concern. The scope of reporting includes all Lundbeck entities; however, the use of SoCs and SVHCs is specific to the production and R&D sites. The SoCs and SVHCs used in Lundbeck's production processes are collected from the internal chemical register, and the amounts of SoCs and SVHCs are gathered from the quantities of purchased substances recorded in SAP. The SoCs and SVHCs used in production processes leave the companyâs facilities either as emissions or as part of products. The amount of SoCs and SVHCs that leave as emissions is estimated based on the assumption that the majority of hazardous substances exit as hazardous liquid waste, which is treated by external partners using advanced filtration technologies. Consequently, a 95% reduction factor is applied to the quantities purchased (i.e., used in production processes) to estimate the amount of SoCs and SVHCs leaving Lundbeck facilities as emissions. The amount of SoCs and SVHCs that leave as products or as part of products is estimated using an input-output approach, which assumes that the quantity purchased equals the quantity exiting as part of prod-ucts. Resource use & circular economy Lundbeck addresses the impact and risk of rising raw material costs by re-ducing waste and increasing the recycling of non-hazardous waste in line with the HSE Policy. Dedicated actions are also in place to recover and re-use chemicals used in production. IRO name IRO type Value chain Upstream Own operations Downstream îó°£ó°£ îó°£ó°£ îó°£ó°£ Waste and resource use Actual negative impact îó°£ó°£ îó°£ó°£ Increasing raw material costs Financial risk See further details on page 65. Our approach (policies) Lundbeckâs approach to addressing circularity and resource use within its own operations is integrated into the HSE Policy (link). This policy broadly ad-dresses Lundbeckâs commitments to circular princi-ples and minimization of consumption, emissions and waste, without specifically accounting for Lundbeckâs resource-related impacts and risks (see page 65). Regarding the approach to circularity and resource use, the HSE Policy is further supported by the HSE Strategy (link), Code of Conduct (link) and Lundbeckâs Position Papers on Environmental Footprint (link) andClimate (link). Through the HSE Policy commitments and the HSE management system, Lundbeck incorporates the use of recycled resources into its production pro-cesses wherever feasible, such as by recovering and recycling selected organic solvents used in the pro-duction of active pharmaceutical ingredients (API). Please refer to âLundbeckâs approach to managing Health, Safety, and Environmen-tal concernsâ on page 86 for more details on the HSE Policy and HSE management system. Although there are no dedicated policies specifically addressing the transition away from virgin re-sources, sustainable sourcing, or the use of renewa-ble resources, Lundbeck has milestones towards sus-tainable sourcing and renewable resources, as de-scribed in our Climate Transition Plan (see page 75). While the HSE Policy and management system are focused on Lundbeckâs operations and do not in-clude circularity-related impacts and risks in the value chain, Lundbeck expects third parties to follow the environmental principles in its Code of Conduct as described in âLundbeckâs approach to managing Health, Safety, and Environmental concernsâ. Addi-tionally, during the procurement process, packaging suppliers are asked about recyclability and waste management, and they must declare that their pack-aging complies with relevant directives and regula-tions. Further, Lundbeckâs on-site audits of chemical suppliers situated in high-risk areas include the as-sessment and monitoring of chemical materials (see page 116). Actions By combining continuous production techniques with recycling principles, Lundbeck aims to create a circular manufacturing model, integrating different manufacturing processes and reusing materials. This approach aligns with SDG 12 (Responsible Consump-tion and Production) and is part of Lundbeckâs Sus-tainability Strategy. Lundbeckâs 2030 aspirations in-clude transitioning from the traditional linear âtake-make-disposeâ manufacturing model to a more re-generative one that limits material use, waste, and CO2 emissions, as well as expanding circular princi-ples to key partners. Lundbeck has several ongoing initiatives to reduce waste, reuse resources, and recycle materials, though a dedicated action plan towards circularity has yet to be developed. As the vast majority of waste from Lundbeckâs production sites is in the form of chemical waste, Lundbeck has dedicated most of its circularity-related efforts so far to recov-ering and reusing chemicals and organic solvents at its chemical production sites in LumsÃ¥s (Denmark) and Padova (Italy). At the remaining production sites in Valby (Denmark) and Valbonne (France), most waste is defined as non-hazardous waste from pack-aging materials. Lundbeck has therefore imple-mented various initiatives to reuse and recycle such materials across its production sites. Recovery and recycling of chemicals and organic solvents Our R&D and manufacturing activities are largely based on chemical synthesis, which uses considera-ble amounts of organic solvents and energy. Lundbeck continuously evaluates and implements green chemistry principles and best available tech-nologies when designing processes, installing tech-nical utilities, and operating facilities. Efforts to improve the recovery and recycling of chemicals and organic solvents are ongoing at Lundbeckâs chemical sites. In 2023, Lundbeck re-ceived internal approval to establish a new Solvent Recovery Unit at the LumsÃ¥s site, thus expanding the recovery process to include three additional sol-vents. With the project starting in 2024 and with ex-pected completion in 2025, this unit is expected to 3facilitate the additional recovery of over 600 m of solvent annually. At the Padova site, recoverable sol-vents are sent to a third party for recovery, while at both sites, non-reusable solvents are used for en-ergy recovery. In 2024, these efforts resulted in the recycling of 62% of selected organic solvents used in chemical production. Recycling of palladium Palladium is used by Lundbeck as a catalyst in the production process for some APIs. The recycling of palladium substantially impacts CO2e reductions, limits the use of a rare earth metal as virgin material, and reduces waste. The palladium used in one of Lundbeckâs major processes is recovered and reused on an ongoing basis in LumsÃ¥s and Padova. In 2024, secondary reuse or recycled components accounted for 32% of the total resource inflow, with palladium recovery being a component of the recycled materi-als. Non-hazardous waste reduction and recycling initiatives In addition to local recycling initiatives across Lundbeckâs operations, Lundbeck consistently imple-ments recycling initiatives for materials such as plas-tic, paper, cardboard, glass, and food waste across its production sites. At the Valby site, small plastic containers used for tablets are regularly recycled and new waste han-dling vendors are engaged to optimize plastic sort-ing, including the sorting and reuse of plastic drums. Similarly, the LumsÃ¥s site implemented an initiative to increase both recycling and reuse of plastic drums which has earlier been sent for incineration. Actions at Valbonne and Valby increased paper and card-board recycling through improved sorting processes and the implementation of a new waste compactor. These efforts include separating material like carton, paper and cartons for recycling from production and warehousing operations. Additionally food waste sorting in kitchens and canteens across Valby, LumsÃ¥s, and Valbonne has boosted food waste recy-cling. Despite ongoing initiatives to improve recycling ef-forts, Lundbeckâs recycling rate for non-hazardous waste has decreased from 70% to 65%. To address this, Lundbeck will evaluate and implement addi-tional recycling initiatives to enhance waste manage-ment practices across its operations.. Targets Chemical recycling To uphold its commitment towards applying circular economy principles in the production process, in alignment with UN Sustainable Development Goal 12 (Responsible Consumption and Production), Lundbeck sets a target each year regarding recycling of selected organic solvents used for the production of APIs at Lundbeckâs chemical sites in LumsÃ¥s and Padova. The target is set based on expected produc-tion volume and mix for the coming year. This approach not only addresses environmental sustainability but also economic feasibility, ensuring that only waste with a high solvent content is treated for recycling. The target is developed based on his-torical data and waste characteristics, and a robust calculation process is used to set the target. However, the target is not validated by an interna-tionally approved framework. The management at both chemical sites develops this target based on the upcoming yearâs production plans, incorporatingestimates of expected solvent use to set a realistic yet ambitious recycling percentage target. The tar-get is then approved by the HSE Council, as well as Executive Management, as a part of Lundbeckâs Sus-tainability Strategy. This target supports increasing the circular material use rate and minimizing the need for primary raw materials. For 2024, the target was to recycle 64% of selected 1organic solvents used in chemical production. In 2024, the result was 62%. The slight deviation from the target was primarily due to a shift in production volumes between our sites. The Padova site, whose solvent recovery capacity is lower than the LumsÃ¥s site, had a higher-than-expected production output, impacting the overall recycling rate. Looking ahead, we have adjusted our 2025 target to 63%, taking intoaccount these operational factors and our continuous commitment and efforts to optimize sol-vent recycling across all our production facilities. General waste recycling In line with our goal to continuously minimize raw material use and waste generation, Lundbeck sets an annual target for general waste recycling at all four production sites. Achieving this target involves implementing measures to separate waste, increaserecycling, and promote reuse. The general waste target is defined based on the available data collection opportunities at the sites, and it supports compliance with relevant regulation(e.g., EU Waste Directive), as well as the principles ofcircularity and waste reduction in Lundbeckâs HSE Policy. The target is set based on an internal meth-odology and has not been validated by any externalscientific framework. The production sites are re-sponsible for collecting and uploading data into theHSE database and providing explanations for any observed changes. Throughout the year, Lundbeckâs corporate HSE department maintains ongoing 1 The accounting policy for the target is disclosed under the accounting policies âRecycling of selected organic solvents in chemical (target)â. 2024 Target Status 2025 Target SDG Recycle 64% of the organic solvents used in Recycle 63% of the organic solvents chemical production. used in chemical production. Recycle 75% of general waste at production Recycle 70% of general waste at all sites. sites globally. Achieved Not achieved On track Not on track communication with the production sites about the status of existing waste initiatives and the potential for future ones. Based on this knowledge, a new cor-porate waste target is determined for the upcoming year, with approval granted from all production sites and Lundbeckâs management via the HSE Council. This collaborative approach ensures that all covered sites are aligned and committed to Lundbeckâs shared recycling goals. For 2024, the target was to recycle 75% of general waste. Recycling of general waste reached 71% in 2024, falling short of the 75% target for the period. The slight underperformance was primarily driven by an increase in hazardous waste, which impacted overall recycling rates. Look-ing forward, Lundbeckâs target for 2025 is to recycle 70% of general waste. This is lower than the 2024 target because the scope is expanded to include all sites globally, including all sales offices. Lundbeckâs targets are set voluntarily and are not re-quired by law. Lundbeck does not currently have any targets regarding the increase of circular product design or the sustainable sourcing and use of renew-able resources. E5-4 - Resource inflows Resource inflows Unit 2024 Overall weight of products, technical and biological materials Tonne 15,938 Percentage of biological materials sustainably sourced % 0 Absolute weight of secondary reused or recycled components Tonne 5,160 Percentage of secondary reuse or recycled components % 32 E5-5 â Resource outflows 1 Total waste generated in operations 2024 2023Non- Non- Unit Hazardous hazardous Total Hazardous hazardous Total Total waste generated 8,062 1,536 9,598 7,360 1,687 9,047 Diverted from disposal Preparation for reuse Tonne - 153 153 - 322 322 Recycling Tonne 51 789 840 1.004 865 1.869 Other recovery operations Tonne 1,057 62 1,120 - - - Total waste diverted from disposal Tonne 1,108 1,004 2,112 1,004 1,187 2,191 Directed to disposal Incineration Tonne 6,121 381 6,502 6,356 345 6,701 Landfill Tonne - 151 152 - 155 155 Other disposal operations Tonne 833 - 833 - - - Total directed to disposal Tonne 6,954 532 7,486 6,356 500 6,856 Non-recycled waste Total non-recycled waste Tonne 6,954 532 7,486 6,356 500 6,856 Percentage % 86 35 86 30 Resource outflows Unit 2024 Absolute weight of recyclable content in product and packaging Tonne 1,427 Rate of recyclable content in product and packaging % 9 Resource inflow Total weight and share of resource inflow related to products, technical and biological materials, as well as the weight and share of secondary reused or recycled components used in Lundbeckâs production activities, reflect our efforts to reduce overall material consumption and increase the use of components with a lower environmental footprint. Lundbeck has biological materials, which consist of lactose, cellulose etc. used in bulk production as inactive carriers of the active pharmaceutical ingredient (API). It is assumed that these materials are defined as biolog-ical materials as they are used as bulk component and serve as carriers for the active ingredients. Information on the certification schemes applicable to these biological materials will be further investigated in future re-porting periods. As a result, a 0% is currently reported. The use of secondary reused or recycled components is largely driven by the recovery and recycling of sol-vents at the production sites. At the LumsÃ¥s site, solvents are treated on-site using advanced recycling units, while at the Padova site, treatment is managed by external suppliers. Waste and resource outflow Lundbeck reports on both hazardous and non-hazardous waste, focusing on waste directed and diverted from disposal, including materials sent for recovery and recycling. The hazardous waste stream includes or-ganic, inorganic chemical substances and medicinal waste while the non-hazardous waste stream consists of paper, plastic, cardboard, metal, glass, food and biological raw materials, pallets, and electronic waste. In 2024, the total waste generated remained consistent with 2023 levels. The resource outflow includes secondary and tertiary packaging materials, such as cartons, leaflets, and ship-ment boxes. 1 Comparative figures have been restated to reflect Lundbeckâs updated accounting policies following the implementation of CSRD. The comparative figures for 2023 are not subject to limited assurance. Accounting policies Resource inflow Resource inflow encompasses all Lundbeck entities and includes all goods purchased goods from external suppliers that fall within the GHG scope 3 boundaries for Category 1: purchased goods and services. It also includes solvents from internal recovery and palladium from third-party recycling. The materials used are as-sumed to be equivalent to those purchased, as they are acquired for planned production. These materials in-clude both pharmaceutical products and packaging. The absolute weight of secondary reused or recycled components includes solvents recovered internally at the LumsÃ¥s site and the recycled palladium content in 'Palladium (DBA)ââ. Internally recovered solvents at the LumsÃ¥s site are measured as the total volume of organic solvents regenerated on-site using recycling units. These volumes are converted from liters to kilograms using a standardized conversion factor. Waste Waste is categorized into two main types of hazardous waste and non-hazardous waste. The hazardous waste stream includes organic, inorganic chemical substances and medicinal waste, while the non-hazardous waste stream consists of paper, plastic, cardboard, metal, glass, food and biological raw materials, pallets, and elec-tronic waste. Waste data is collected from the production sites located in Valby, LumsÃ¥s, Padova, and Valbonne. The col-lected waste data is based on supplier data, weight recipes and estimations (2%) where primary data is una-vailable. For the remaining entities, data is derived from estimations (3%) based on the weight of the office waste per FTE at the Valby site in the prior reporting year. Recycling covers paper, plastic, cardboard, metal, glass, food, and biological raw materials. Other recovery operations covers primary hazardous waste from Padova. Incineration covers primary hazardous waste from the chemical production sites. Resource outflow The scope of reporting includes all Lundbeck entities. The absolute weight of recyclable content in products and packaging includes all purchased materials purchased for secondary and tertiary packaging from external suppliers, as defined within the GHG scope 3 boundaries for Category 1: purchased goods and ser-vices. This recyclable content includes cartons, leaflets, and shipment boxes, all of which are components of secondary and tertiary packaging. Repairability is not applicable, as pharmaceutical products are classified as hazardous waste and are inciner-ated at the end of their life cycle. The durability of Lundbeckâs products is influenced by factors such as the longevity of active pharmaceutical ingredients (APIs), type of packaging, and specific market requirements. Recycling of selected organic solvents in chemical (target) Recycling of selected organic solvents in chemical production applies to solvents utilized at Lundbeckâs chemi-cal production sites in LumsÃ¥s and Padova. Recycling is measured as the total volume of selected organic sol-vents that has the potential to be recycled. Solvents include newly purchased, recycled, and scrapped sol-vents, with volumes converted from liters to kilograms using a standardized conversion factor. At LumsÃ¥s, sol-vents are treated on-site using recycling units, while at Padova, treatment is managed by external suppliers.Social In this section 102 Own workforce 115 Workers in the value chain 118 Consumers and end-users Own workforce Lundbeckâs greatest asset is its people. Everywhere we operate, we strive to safeguard our employees, take action on gender equality and uncon-scious bias, and contribute to our employeesâ health and wellbeing. IRO name IRO type Value chain Upstream Own operations Downstream Health and Safety, mental Systemic, potential negative îó°£ó°£ wellbeing impact Diversity, Equity and Inclusion Systemic, potential negative îó°£ó°£ (DE&I) impact Inability to attract and retain îó°£ó°£ Financial risk employees See further details on page 66. Health and safety Our approach (policies) Ensuring the health and safety of all Lundbeck em-ployees is fundamental to building a resilient and ethical organization. Our HSE Policy (link) and Health and Safety Position (link) set out our approach to-wards workplace accident prevention and enable the management of health and safety risks to all em-ployees, including groups at higher risk such as pro-duction workers and the salesforce. Lundbeckâs health and safety performance is also governed by our Code of Conduct (link) (see page 131). The HSE Policy specifies Lundbeckâs commitment to complying with applicable health and safety legisla-tion and internal guidelines, preventing work related accidents and ill health, as well as promoting a high level of chemical safety by substituting hazardous chemicals. Lundbeckâs HSE Strategy (link) and Code of Conduct make reference to the UN Guiding Princi-ples on Business and Human Rights. To date, this is not included within the HSE Policy. The interests of Lundbeckâs workforce are incorpo-rated into the HSE Policy through the HSE Council, which is chaired by the Executive Vice President of Product Development & Supply, and includes three employees and three management representatives who define and regularly evaluate the policy. Lundbeckâs Executive Management is accountable for the implementation of the policy. The HSE Policy is available internally on Lundbeckâs intranet and externally on our website www.lundbeck.com. Lundbeckâs four production sites are covered by the HSE management system as further specified in âLundbeckâs approach to managing Health, Safety, and Environmental concernsâ (page 86). In the context of health and safety, this includes cor-porate-level action plans based on work-related diseases, accidents, near misses, and hazard ob-servation data, new legislation, and societal trends. Lundbeckâs corporate headquarters and larger research, development, and manufacturing facilities are certified in accordance with the ISO 45001 standard certification. Actions As a global pharmaceutical company, Lundbeck puts in place a set of key actions to ensure the health and safety of employees. Considering the risk of inci-dents at our production sites (i.e., Valby (Denmark), LumsÃ¥s (Denmark), Padova (Italy) and Valbonne (France)), specific actions have been taken regarding the chemical safety of our workforce across these sites. In 2024, these actions included the evaluation of more efficient processes for chemical substitution, the improvement of communication around chemi-cal guidance, as well as the review and update of REACH registrations (Registration, Evaluation, Au-thorization and Restriction of Chemicals). By increas-ing awareness on chemical safety and promoting re-lated trainings, Lundbeck seeks to eliminate poten-tial chemical safety risks for employees and thereby reducing the need for any future remedy. Since the launch of these initiatives in 2024, the effectiveness is evaluated regularly with stakeholders in the line of business. Lundbeck is continuously developing its comprehen-sive Industrial Hygiene Program, which includes toxi-cological tests, dust measurements, and the calculation of exposure limits for new active sub-stances and biologics. Based on these measure-ments, Lundbeck evaluates and designs workplaces and procedures that ensure healthy and safe work-ing conditions. Lundbeckâs chemical safety experts are responsible for performing gap analyses based on applicable regulations and supplier information to identify the most suitable actions to address chemical safety risks for Lundbeck employees. Beyond the key actions implemented for chemical safety, Lundbeck mitigates risks by systematically as-sessing health and safety data, working conditions and conducting risk assessments before implement-ing changes, such as new legislation, facilities or product development. Lundbeck also maintains nu-merous services and guidelines available to all em-ployees via the intranet regarding chemical safety aswell as general health and safety at work. These in-clude resources on taking âBrain and Body Breaksâ toget energized at work; exercises to prevent aches and pains; videos on best ergonomics practices in the office, laboratories, as well as when driving. Targets Health and safety in the workplace is a priority at Lundbeck, and fostering a safety culture that mini-mizes work-related accidents and diseases is essen-tial. To achieve this, we carry out exhaustive moni-toring of the frequency, number, and severity of ac-cidents to establish action plans and ambitious tar-gets and facilitating preventive actions. Our HSE Pol-icy, HSE position and management system specify our ambition towards health and safety and consti-tutes our framework for setting measurable targets.Lundbeckâs 2024 targets are expressed in terms of Lost Time Accident Frequency (⤠3) and High-conse-1quence Work-related Accidents with Absence (⤠2). These targets cover all Lundbeck employees and arenot tracked against a specific baseline year. The methodologies and assumptions used for set-ting Lundbeckâs health and safety targets are an-chored in the HSE Policy and HSE management sys-tem, which are reviewed and approved by the HSE Council on an annual basis to reflect the latest data, trends and applicable legislation. Progress on the health and safety targets is tracked and reported quarterly to Lundbeckâs HSE Council, which includes employee representatives. The HSE Council reflects the views of Lundbeckâs workforce in the target setting process, and in identifying any im-provements based on historical performance. In 2024, Lundbeckâs Lost Time Accident Frequency has increased to 3.2 and High-consequence Acci-dents also rose to 3, therefore not meeting the 2024 target. Safety culture projects have been established to mitigate accidents and ill health cases and to seek long-term sustainable solutions. These initiatives align with Lundbeckâs 2030 aspirations to reduce workplace accidents and improve overall health and safety. Continuous focus on risk assessment and root causes analysis by managers and employees helps maintain a low incidence of work-related ill health cases (one occurred in 2024). 2024 Target Status 2025 Target SDG Reduce Lost Time Accident Frequency ⤠3. Reduce Lost Time Accident Frequency ⤠3. Not more than 2 High consequence Work- N/A related Accidents with Absence. Achieved Not achieved On track Not on track 1 The accounting policy for the target is disclosed under the accounting policies âHigh-consequence work-related accidents with absence (target)â. S1-14- Health and Safety metrics Health and Safety Unit 2024 Percentage of own workforce covered by the Health and Safety management system % 100 Incidents per Lost Time Incident Rate (LTIR) 3.2 million hours Incidents per Total Recordable Incident Rate (TRIR) 13.8 million hours Number of fatalities No. - Number of work-related accidents No. 130 Number of days lost due to work-related injuries and fatalities No. 733 In 2024, Lundbeck had 130 work-related accidents, resulting in 733 lost days due to injuries, primarily caused by ergonomic issues, slips, trips, and falls. Thirty of the 130 work-related accidents include absences, and three of them constitute 72% of the lost days. Accounting policies Health and safety The percentage of employees covers all Lundbeckâs employees based on headcount. The employees are ei-ther covered by the health and safety management system certified according to ISO 45001, or by legal re-quirements. Lundbeckâs ISO-certified system covers research, development, and manufacturing sites in Den-mark, Italy, and France, as well as our headquarters functions. Legal requirements apply to all other Lundbeck sites. Fatalities refer to the number of employees and other workers at Lundbeck sites who lost their lives due to work-related injuries, as recorded in the HSE data system. These incidents are included in the calculation of the Lost Time Incident Rate (LTIR) and the Total Recordable Incident Rate (TRIR). The number of work-related accidents includes both work-related accidents with absence and without ab-sence, as recorded in the HSE data system. A work-related accident is defined as a work-related event or expo-sure that occurs suddenly and results in personal physical or psychological injury. These accidents are in-cluded in the calculation of the Lost Time Incident Rate (LTIR) and the Total Recordable Incident Rate (TRIR). The Total Recordable Incident Rate (TRIR) measures the rate of all work-related injuries, which includes work-related accidents, and fatalities per million hours divided by total hours worked. The total hours worked is cal-culated by estimating 225 working days per year, multiplied by 7.4 hours per day, and then multiplied by the number of employees, based on Danish working time standards. The number of days lost due to work-related injuries includes all days lost to work-related accidents and fatali-ties. This calculation covers the entire period of absence, from the first full day to the last, and is based on cal-endar days, including non-working days. The Lost Time Incident Rate is determined by the number of work-related accidents with absence and fatali-ties per one million working hours. The total hours worked is calculated by estimating 225 working days per year, multiplied by 7.4 hours per day, and then multiplied by the number of employees, based on Danish working time standards. High-consequence work-related accidents with absence (target) High-consequence work-related accidents with absence are defined as work-related accidents that are categorized as âLargeâ (work-related injury with permanent injury) or âCatastrophicâ (death or disability) in the internal risk assessment. These accidents result in injuries from which the employee is not expected to fully recover within six months. Mental wellbeingOur approach (policies) Safeguarding the mental and physical health of our employees is paramount to Lundbeckâs success. At Lundbeck, mental wellbeing is managed through ourwellbeing commitment and the HSE Policy (link) (see page 86), which are global in scope and thus apply to all Lundbeck employees. The wellbeing commitment recognizes the importance of employeesâ wellbeing as fundamental to Lundbeck remaining a workplace where everyone can thrive. One of the ways that Lundbeck embodies its commitment to psychologi-cal and mental wellbeing is through the âMigraine-friendly workplaceâ certification, as awarded by the European Migraine & Headache Alliance. At Lundbeck, the Executive Management is account-able for the implementation of the wellbeing com-mitment, which is presented to the Works Council and the HSE Council in order to receive comments from employee representatives or manager repre-sentatives. These bodies help incorporate the views and interests of Lundbeckâs workforce into relevant policies and action plans. The Wellbeing commit-ment is available internally to employees via Lundbeckâs intranet. To date, no reference to the UN Guiding Principles on Business and Human Right is included within the wellbeing commitment. Actions Lundbeck takes various actions to support the men-tal and physical wellbeing of employees, designed to address, prevent and monitor impacts on employee wellbeing. Recognizing the diverse needs of a global workforce, wellbeing programs are adapted for dif-ferent locations. Lead the Way Culture As part of our new Focused Innovator Strategy, the global âLead the Wayâ culture journey was intro-duced in 2024, with tailored initiatives to equip eve-ryone at Lundbeck with the right tools to drive our culture change. One key ambition is to foster a sup-portive work environment with psychological safety, leaders who listen, and a strong feedback culture. The ambition will be measured through specific âOur Voiceâ (see page 110) questions to gain an under-standing of employee experiences as well as to track the progress of our cultural ambitions. By focusing on fostering a supportive work environment, Lundbeck is creating a workplace where employees can thrive both personally and professionally. Psy-chological safety is also promoted through stress prevention programs which are available at major sites, giving employees the tools and support they need to maintain a healthy balance in their work and personal life. Compressed working week Lundbeck recognizes that flexible working arrange-ments boost employeesâ wellbeing by supporting flexibility in the workplace and in their workday. In 2024, the two-year pilot for compressed working weeks continued at the LumsÃ¥s (Denmark) produc-tion facility. The pilot gives employees the option to compress their working time into fewer days, and thereby getting more full days off. According to the most recent evaluation in August 2024, productivity has not decreased, and satisfaction is high among those who are working shorter weeks. For office-based employees, Lundbeckâs Flexible Workplace, Flexible Workday, and Reduced Hours Policies apply, with local management deciding how to shape the best work environment in each area. Brain break rooms In 2024, seven dedicated âbrain break roomsâ have been established as spaces for personal silence at our headquarters in Valby (Denmark). These rooms are designed to be a refuge for employees from the stressors and distractions of a busy environment, and can be used for mental breaks, as well as for spiritual and religious practices. Similar initiatives are implemented at our sites in the US and Poland. Due to the recent implementation, Lundbeck has not yet put in place a formal process for tracking the ef-fectiveness of the âbrain break roomsâ. Targets Currently, the wellbeing of our employees is moni-tored through our internal âOur Voiceâ survey (see page 110), in which employees can assess several wellbeing-related statements, including âEmployee health and wellbeing is a priority at Lundbeckâ, âLundbeck provides me with information and support to manage my health and wellbeingâ, and âMy manager shows that employee wellbeing is importantâ. By moni-toring the evolution of the score to these statements (i.e., from 0 to 10), Lundbeck aspires to improve em-ployeesâ wellbeing and their awareness of the availa-ble support. The results are shared with employees internally, discussed in teams with the relevant man-ager, and action plans are put in place. All employ-ees are also appraised annually and have the oppor-tunity to discuss individual training needs and career aspirations with their immediate manager. The poli-cies, actions, and targets specified above ensure that Lundbeck does not cause or contribute to material negative impacts on own workforce. Diversity, Equity & Inclusion Our approach (policies) Since 2009, Lundbeck has been a signatory to the UN Global Compact and has been acting in support of SDG 5 (Gender Equality) and 10 (Reduced Inequali-ties). These commitments are steered by Lundbeckâs Diversity Equity & Inclusion (DE&I) Policy (link), which guides the actions that the organization takes to fos-ter a diverse, equitable and inclusive culture, as well as to ensure that key people and business processes are inclusive by design. Accordingly, our DE&I Policy demonstrates Lundbeckâs commitment to tackling discrimination and to enhancing equal opportuni-ties. The DE&I Policy is global in scope and applies to members of the Board of Directors, Executive Man-agement and all other Lundbeck employees. It is de-veloped by Lundbeckâs Global DE&I Office, endorsed by the Executive Management and approved by the Board of Directors. The policy is designed to con-sider the interests of Lundbeckâs own workforce, as a diverse and inclusive workplace is beneficial for all employees and for Lundbeck as an organization. At Lundbeck, discrimination is not tolerated in any form. Due to its broad scope, the policy does not in-dividually mention specific grounds for discrimina-tion, nor does it include a reference to the UN Guid-ing Principles on Business and Human Rights. The DE&I Policy is available on Lundbeckâs intranet for in-ternal stakeholders and at www.lundbeck.com for external stakeholders. Advancing DE&I Lundbeck works to embed the tenets of the DE&I Policy by promoting an inclusive mindset across the organization and continuously improving our people processes and policies. Lundbeck continues to work on mitigating unconscious biases in its people pro-cesses and ensuring that all employees complete training on how to recognize and mitigate uncon-scious bias. Lundbeck also trains all employees on cultural awareness, which works towards advancing cultural intelligence and promoting effective collabo-ration. Lundbeck recognizes gender equality as an-other important aspect of DE&I. To foster gender equality, Lundbeck has developed targets on gender balance â see the DE&I targets on page 109 for more detail. Lundbeckâs Neurodiverse Workplace Commitment Lundbeck is committed to creating a supportive work environment for all employees, including those with different cognitive profiles and those who expe-rience changes in brain health during their employ-ment. If an employee ever experiences a change in their brain health that affects their current role, Lundbeck will explore ways to adapt working condi-tions to better suit the employee, provide training to improve managersâ ability to support them, and con-tinuously raise awareness on the topic across the or-ganization. Actions To achieve our DE&I Policy objectives, Lundbeck has put in place a number of actions to promote DE&I and reduce bias. DE&I Academy In 2024, Lundbeck launched an interactive online platform named the DE&I Academy. The intended outcome of the DE&I Academy is to educate Lundbeckâs workforce on the importance of diversity, equity, and inclusion, and increase awareness and thereby lowering the likelihood of DE&I related inci-dents. The platform is available and promoted to all employees on Lundbeckâs intranet and encompasses a combination of e-learnings, TED talks, articles, and podcasts, covering key DE&I topics such as uncon-scious bias, cultural awareness and psychological safety. A formal process for tracking the effectiveness of this initiative is yet to be established, as its focus is on awareness and prevention. The DE&I Academy does not serve as one of Lundbeckâs current chan-nels for investigating incidents and providing appro-priate remedy. Actions to effectively promote DE&I across the or-ganization are evaluated by Lundbeckâs Global DE&I office. Since discrimination and inequity are rooted in disinformation and prejudice, increasing aware-ness across employees was prioritized in 2024 to support their learning on how to become more inclu-sive in oneâs everyday life. Further, some Lundbeck subsidiaries have additional initiatives to promote DE&I according to local needs. Reducing bias initiative One practical way through which Lundbeck works to avoid discrimination is by continuously reviewing its people and recruitment processes. Since 2022, Lundbeck has been running an anti-discrimination initiative in Denmark and Poland, with the aim of re-ducing unconscious bias in recruitment processes. The âReducing Bias Initiativeâ entails a set of bias-mit-igating measures, including the deployment of third-party technologies for the identification and elimina-tion of biases in the pre-interview stage, and the use of objective recruitment criteria in the selection of potential candidates. This initiative was designed by Lundbeckâs People & Culture department based on research and engagement with relevant stakehold-ers and experts concluding that the recruitment pro-cess is a critical area to be addressed to tackle un-conscious bias. By working on identifying uncon-scious bias, Lundbeck seeks to prevent and remedy incidents of discrimination, thereby attracting a di-verse pool of talent. Since its implementation, the ef-fectiveness of the recruitment process in general has been tracked, with limited data on the diversity of applicants. The DE&I actions described above are designed to address and monitor Lundbeckâs material impacts and risks related to our own workforce. Targets Lundbeck currently tracks progress on DE&I through its gender balance targets, linked to its long-estab-lished aim to maintain an overall equal gender split for all people managers globally. Lundbeck has, since 2021, had a voluntary sustaina-bility target to increase the share of the underrepre-sented gender (currently women) year on year 1across senior management. In 2024 the number of women in senior management positions was 35% as of year-end compared to 36% women in 2023, corre-sponding to a 1% decrease and thus not meeting the target. The development is due to changes in the Ex-ecutive Management and their direct reports. The 2024 gender balance for senior managers is, how-ever, higher than when the monitoring of this volun-tary target began in 2020, at which time the gender split was 32% women and 68% men. The voluntary target for senior management is being retired as a sustainability target as of 2025, but will still be part of the internal performance management reporting. Going forward, gender targets will reflect the re-quirements of the new Danish Gender Balance Act coming into force in 2025. For management, the tar-get scope is upper management in accordance with the accounting policy. In 2024, the share of women in upper management was 43%, up from 38% in 2023. In 2025, the target is to maintain an even gender balance in upper management closest to 40% but not exceeding 49% of the underrepresented gender. Similar targets apply to Lundbeckâs Board of Direc-tors to achieve equal gender distribution among all members, comprising those elected by the General Assembly and those elected by employees, see page 112. Lundbeckâs global gender balance targets are pro-posed by the global DE&I office, endorsed by the Ex-ecutive Management, and approved by Lundbeckâs Board of Directors. Targets on DE&I are revisited an-nually by the Executive Management in connection with its goal-setting process. Lundbeck engages its workforce on DE&I matters through its employee engagement survey - âOur Voiceâ (see page 110). The survey provides global insights, enabling Lundbeck to monitor results and define areas of focus based on opportunities for im-provement. The setting and tracking of the gender balance targets is based on applicable regulations. Progress on target is tracked and reported quarterly to Executive Management and results are available to managers, as well as across all levels, to monitor progress and identify areas of opportunity. 2024 Target Status 2025 Target SDG Increase in share of un-Maintain an even gender balance in derrepresented gender at upper management closest to 40% but senior management level not exceeding 49%. year on year. 2Reach an overall inclusion score of 8.5N/A N/A in the annual employee satisfaction survey (ESS). Achieved Not achieved On track Not on track 1 The accounting policy for the target is disclosed under the accounting policies âGender balance Senior management (target)â. 2. Top quartile Peakon benchmark. Engaging with our workforceLundbeck utilizes an employee engagement survey called âOur Voiceâ to enable ongoing focus on en-gagement and act on what matters most to our peo-ple. This survey is run through a partnership with an external provider and is used to collect feedback from employees and ensure ongoing dialogue across the organization. Once answers are received, employee responses and engagement are anony-mized. The survey includes questions covering en-gagement and relevant strategic themes, such as di-versity and inclusion, wellbeing, and transformation and change. A full survey is released in the first half of each year, followed by a shorter survey in the sec-ond half. Surveys are shared with all employees globally, except for contingent workers and employ-ees who recently joined or are soon leaving Lundbeck. The overall results of the full survey are presented to employees by the Executive Vice Presi-dent of People & Culture (P&C) and are published on Lundbeckâs intranet. Based on the survey results, the Executive Management defines the overall focus ar-eas for Lundbeck moving forward. Our Voice aims to gain an understanding of the per-spectives of people at Lundbeck, including those par-ticularly vulnerable to negative impacts. For instance, Lundbeck employees are asked to rate their level of satisfaction with âLundbeck's efforts to support diversity and inclusion (e.g., gender, ethnicity, disability, and socio-economic status)â and to express the extent to which they feel that âeveryone is treated with respect at Lundbeckâ. Both âOur Voiceâ surveys conclude with an open text question, inviting em-ployees to share any additional thoughts or con-cerns through the survey. This ultimately enables employees to voice their perspectives and most im-portantly to be heard. The âOur Voiceâ process is structured to promote the value of insights, dialogue, and action planning in teams across Lundbeck. To ensure employee partici-pation, upcoming surveys are communicated to em-ployees. All managers are expected to ensure contin-uous dialogue and follow up on action planning within their teams. The approach for this is guided by Global Manager training and the ongoing devel-opment of learning and development material. Em-ployees contribute to and act on the priorities deter-mined for their teams, and the survey participation rate is tracked and communicated both at the team level and the global level. In addition to âOur Voiceâ, Lundbeck maintains multi-ple channels and formal internal processes for em-ployees to voice their opinions and concerns. These include immediate managers, work councils, trade union representatives, as well as local People & Cul-ture and Employee Relations. These channels are made easily accessible to all employees on Lundbeckâs intranet. Remediation and channels to raise concern All employees are encouraged to report incidents and raise complaints either directly to their manag-ers, Employee Relations, local People & Culture, the ombudsmen, or through Lundbeckâs Compliance Hotline (link) (see page 133). The hotline is a secure system hosted by a third party and is available inter-nally through our intranet and externally on Lundbeckâs website. When an issue is raised through one of these chan-nels, it is assessed and, if necessary, investigated to conclude whether the claim is substantiated or not, and to take appropriate actions. The outcome is communicated to relevant stakeholders. Many con-siderations go into each report, to ensure an effec-tive, safe, and discrete handling of incidents for employees. Accordingly, the type of remedy pro-vided and the process for monitoring its effective-ness can vary depending on the specific circum-stances of each case. Additional grievance mechanisms are available to Lundbeck employees in order to raise and address any concerns. These include trade union representa-tives, the European Works Council, and the local Works Councils, all of which are made available on Lundbeckâs intranet. As further specified in section Prevention and Detection of Ethical Concerns (see page 133), Lundbeck ensures the protection and an-onymity of all employees who make use of any of the aforementioned channels. S1-6- Characteristics of the undertakingâs employees All people in Lundbeck's own workforce who could materially be impacted are included in the scope of the disclosures. Employee headcount by gender Unit 2024 Male Headcount 2,517 Female Headcount 3,143 Other Headcount - Not reported Headcount - Total employees Headcount 5,660 Employee headcount by country Unit 2024 Denmark Headcount 2,052 United States Headcount 990 France Headcount 301 Poland Headcount 285 China Headcount 268 Italy Headcount 262 Spain Headcount 154 Canada Headcount 114 Mexico Headcount 99 Brazil Headcount 98 Japan Headcount 94 Russia Headcount 77 South Korea Headcount 69 Germany Headcount 62 Singapore Headcount 61 Greece Headcount 53 Other countries Headcount 621 Total employees Headcount 5,660 Headcount by contract type and gender 2024 Contract type Unit Female Male Total Permanent employees Headcount 2,991 2,452 5,443 Temporary employees Headcount 152 65 217 Non-guaranteed hours employees Headcount 0 0 0 Total employees Headcount 3,143 2,517 5,660 Employee turnover Unit 2024 Employee turnover ratio % 14.4 Employee turnover Headcount 796 Characteristics of the undertakingâs employees As of 2024, Lundbeckâs workforce includes 2,517 male and 3,143 female employees. Headcount is distributed across several countries, highlighting Lundbeckâs global presence and local impact. In terms of contract types, the majority of employees hold permanent contracts, with 2,991 females and 2,452 males in this category. Temporary contracts account for a smaller proportion of the workforce, with 65 males and 152 females. Lundbeckâs employee turnover rate stands at 14.4%, which is continuously monitored to support workforce stability and engagement. S1-9- Diversity metrics 1 Gender distribution at top management Unit 2024 2023Board of Directors Total number Headcount 11 12 Number of female:male for the General Assembly-elected members Headcount 2:5 2:6 Number of female:male for the employee-elected members Headcount 2:2 2:2 Share of female for all Board of Directors % 36 33 Share of female for the General Assembly-elected members % 29 25 Share of female for the employee-elected members % 50 50 Upper Management Total number Headcount 67 55 Number of female:male Headcount 29:38 21:34 Share of female % 43 38 Age distribution Unit 2024 Under 30 years old % 10 30-50 years old % 56 Over 50 years old % 34 Gender distribution and age distribution At the end of 2024, Lundbeckâs Board of Directors comprised 11 members. Among the General Assembly-elected members, two were female, and five were male, while the employee-elected members included twofemales and two males. This reflects a slight change from 2023, when the board had 12 members, includingtwo female and six male General Assembly-elected members, with the same gender distribution among em-ployee-elected members. In upper management, female representation continued to grow. By the end of 2024, Lundbeck had 67 upper management members, 43% of whom were female, up from 38% in 2023. In terms of age distribution across the Lundbeck workforce, 10% of members were under 30 years old, 56% were between 30 and 50 years old, and 34% were over 50 years old. S1-16- Remuneration metrics (pay gap and total remuneration) Gender pay gap Unit 2024 Gender pay gap, unadjusted % 8.7 Gender pay gap, adjusted % 0.5 At the end of 2024, an analysis of our remuneration practices indicated a small gender pay gap. While the gap is minor, we remain committed to addressing this issue. We believe even slight disparities are unacceptable and will continue to prioritize efforts to eliminate them. This commitment reflects our dedication to fostering equity and inclusion, ensuring that all employees feel valued and fairly compensated for their contributions. CEO pay ratio Unit 2024 CEO pay ratio Times 40.7 Changes in our methodology for calculating the CEO pay ratio have prompted a review of our remuneration data models. We will actively refine these models to validate the current ratio, ensuring our compensation practices align with industry standards and demonstrate fairness and transparency for all stakeholders. 1 Comparative figures have been restated to reflect Lundbeckâs updated accounting policies following the implementation of CSRD. The comparative figures for 2023 are not subject to limited assurance. S1-17- Incidents, complaints and severe human rights impacts Incidents & Complaints Unit 2024 Number of cases reported through the channels for own workforce No. 14 Number of complaints filed to National Contact Points for OECD Multinational Enterprises No. - Number of discrimination cases reported No. 14 Number of substantiated discrimination cases No. 9 Amount of fines, penalties, and compensation DKKm - In 2024, 14 discrimination cases were reported, of which 9 were substantiated. Accounting policies Employee headcount, gender, age, country, and turnover Employee data is recognized based on records from the Groupâs HR system. The total number of employees, including permanent and temporary employees, is expressed on a headcount basis as of year-end. The employee turnover rate is calculated as the number of permanent employees who have left the company within the reporting year divided by the total average number of permanent employees during the reporting year. All numbers are given on a headcount basis. Please refer to the Note 4 (Employee cost) in the Group Financial Statements for the most representative number in the Financial Statements. Age distribution The age distribution is calculated by determining the number of employees within each age group and ex-pressing this as a proportion of the total number of employees. All numbers are given on a headcount basis as of year-end. Gender distribution at top management The total number of the underrepresented gender (female) elected by the General Assembly and the employee-elected members is divided by the total number of members on the Board of Directors for H. Lundbeck A/S. Upper management includes the Executive Management or the employees at the same level as Executive Management (e.g., the CEO, EVPs), as well as employees who report to Executive Management and have people management responsibilities. Top management includes the Board of Directors and upper management. Gender for the top management gender balance is categorized as female or male, and gender balance is reported as the share of the un-derrepresented gender in the total. Gender pay gap â unadjusted The gender pay gap is calculated as the percentage difference in average base pay (in DKK) between male and female employees, relative to the average annual pay of male employees. Annual base pay levels are used in this calculation due to limited data availability for hourly pay levels. Lundbeck is committed to enhancing data quality on this topic in future reporting periods. Gender pay gap â adjusted The gender pay gap is determined by analyzing the average annual base salary (in DKK) for male and female employees, by pay grade and country. The pay gaps are aggregated to a country level and weighted based on the number of Lundbeckâs employees in each respective country. Certain pay grades in countries where a pay gap cannot be computed due to only one of the two genders being represented on the specific pay grade are excluded from the consolidated population. The country-specific pay gaps are aggregated to a global average and divided by the total number of Lundbeckâs employees to determine the overall average gender pay gap. Annual pay levels are used in this calculation due to limited data availability for hourly pay levels. Lundbeck is committed to enhancing data quality on this topic in future reporting periods. CEO pay ratio The CEO pay ratio is calculated by dividing the CEO's annual total remuneration, as reported in the Remunera-tion Report, by the total remuneration of the median employee for the Group. Remuneration includes salary, bonuses (STI and LTI), allowances, pension, and all one-time payments made during the year. The median employee is identified based on base salary, after which their total remuneration is used to calcu-late the CEO pay ratio. Lundbeck is committed to enhancing data quality on this topic in future reporting peri-ods. Incidents & Complaints The number of cases reported through the channels for own workforce, is the total number of complaints re-ports filed through the channels to raise a concern. Cases related to discrimination include all reported and investigated cases within the reporting year. These cases encompass discrimination based on gender, racial or ethnic origin, nationality, religion or belief, disabil-ity, age, sexual orientation, or other relevant forms of discrimination. Incidents of discrimination also include incidents of harassment as a specific form of discrimination. Discrimination concerns can be raised through various channels such as directly to their managers, to Employee Relations, to local People & Culture, to the ombudsmen or through Lundbeckâs Compliance Hotline. Gender balance Senior management (target) Gender balance for senior management includes all Executive Vice Presidents, Senior Vice Presidents, and Vice Presidents. Gender balance is assigned as female or male, and gender balance is reported as the share of the underrepresented gender of the total. Workers in the value chainLundbeck works with its suppliers to foster sustainable, safe, and respectful work environments for everyone contributing to our global value chain. IRO name IRO type Value Chain Upstream Own Operations Downstream Human rights and Systemic, potential îó°£ó°£ îó°£ó°£ Health and Safety negative impact See further details on page 66. Our approach (policies) As a global company, Lundbeck recognizes its re-sponsibility to contribute to the safety and wellbeing of workers across its value chain. As part of our due diligence processes, Lundbeck has several opera-tional documents in place which set out our commit-ments to safeguard human and labor rights, includ-ing the Human Rights Statement (link), Code of Con-duct (link) and Third-Party Obligations (link). Through these documents, Lundbeckâs suppliers are contractually obliged to adhere to local and interna-tionally recognized labor rights and sustainability standards such as the UN Global Compact and the Sustainable Development Goals. In addition, third-party intermediaries must contractually acknowledge and adhere to Lundbeckâs Code of Con-duct and Third-Party Obligations, which explicitly emphasize a commitment to respecting human and labor rights. Processes for engaging with value chain workers The perspectives of value chain workers inform Lundbeckâs decisions, activities, and the develop-ment of policies. Insights are gained by internal sub-ject matter experts, as informed by current research on working conditions in the chemical and pharma-ceutical industry, as well as the cases addressed by the Compliance Hotline and the Health, Safety and Environment (HSE) supplier audits. The HSE supplier audits are undertaken on suppliers based on a risk approach and cover both human rights and health and safety topics. Since our value-chain workers in the chemicals industry are consid-ered more likely to be vulnerable to negative im-pacts, Lundbeck conducts on-site audits of all chemi-cal suppliers in high-risk countries. During these au-dits, workers can be interviewed, and their feedback is used to develop corrective action plans and follow-up audits. Audits are implemented prior to approv-ing a high-risk supplier and are a part of Lundbeckâs standard audit processes. The HSE department is re-sponsible for implementing Lundbeckâs HSE Policy (link), ensuring that on-site audits are undertaken and that ongoing monitoring is performed. Chemical suppliers in low-risk countries are audited by the Quality department, which raises any issues regarding working conditions to the HSE department for follow-up. Human Rights Statement Lundbeckâs commitment to respecting human and labor rights across our global value chain is set out in our Human Rights Statement, which applies to all Lundbeck operations and value chain activities. Through this statement, Lundbeck adheres to the Universal Declaration of Human Rights (UNDHR), the International Covenant on Civil and Political Rights (ICCPR) and its second optional protocol, the Interna-tional Covenant on Economic, Social and Cultural Rights (ICESCR), other core international human rights instruments defined by the Office of the High Commissioner for Human Rights (OHCHR), as well as fundamental ILO conventions. The accountability for the implementation of Lundbeck's Human Rights Statement lies with the Corporate Sustainability de-partment, which reports directly to Lundbeckâs Gen-eral Counsel. Our framework for respecting human rights is based on the UN Guiding Principles on Busi-ness and Human Rights, the OECD Guidelines for Multinational Enterprises, the UN Global Compact Principles, and our commitment to specific Sustaina-ble Development Goals (SDGs) and their targets. By visiting Lundbeckâs website, external stakeholders can access our Human Rights Statement and report concerns confidentially via the Compliance Hotline (link). Further, Lundbeck conducts due diligence pro-cedures to identify and address potential human rights impacts. Third-party obligations All third parties interacting with Lundbeck must ad-here to the UN Global Compact principles and those outlined in our Code of Conduct. In addition, third parties must live up to Lundbeckâs Third-Party Obli-gations, which complement the scope and imple-mentation of our Code of Conduct. The obligations entail that Lundbeckâs third parties must ensure compliance with applicable national and interna-tional laws relating to human and labor rights. Spe-cifically, third parties must uphold the abolition of child labor; maintain health, safety, and environment procedures to ensure compliance with applicable laws, regulations, guidelines, and industry stand-ards; and provide employees the right to rest, a min-imum income to meet their needs, protection against coercion and degrading treatment or dis-crimination, and the right to freedom of association. While the obligations do not specifically refer to hu-man trafficking, they support the principle that these practices should be eliminated. In addition, although workers in the value chain were not directly engaged when drafting these obligations, the policy is created to safeguard their best interests and is based on in-ternationally recognized frameworks such as the OECD Guidelines for Multinational Companies. Code of Conduct Lundbeck considers a safe and compliant working environment to be fundamental for all workplaces. Our commitment towards workersâ safety and well-being across the value chain is covered by our Code of Conduct as further specified on page 131. Remediation and channels to raise concern Our approach for addressing concerns and griev-ances within our value chain is grounded in the prin-ciples set out by our Code of Conduct. These enable remediation to any raised concerns in a way that is proportionate to the severity of the issue. At Lundbeck, we are dedicated to continuously en-hancing our processes to ensure appropriate reme-diation for affected stakeholders in instances where we recognize that our actions have caused or con-tributed to negative impacts. Lundbeckâs Compliance Hotline is externally availa-ble and thereby accessible to all value-chain workers,enabling them to raise concerns, which will be thor-oughly investigated and addressed. The effective-ness of Lundbeckâs engagement with value-chain workers is assessed and tracked via the Compliance Hotline and the HSE audits (see pages 116 & 133). Global Compliance periodically reports an anony-mized summary of global reported claims of poten-tial misconduct to the Audit Committee and the Global Compliance Committee. Investigation conclu-sions and recommendations may be shared with the Audit Committee, Global Compliance Committee, and/or Executive Management for endorsement or further action. While Global Compliance is responsi-ble for the investigation of potential misconduct, management is responsible for securing remedia-tion or disciplinary actions. Actions and targets The HSE audits and Compliance Hotline are pro-cesses undertaken by Lundbeck as part of our stand-ard way of working. For this reason, in 2024 no key actions were undertaken, or targets set regarding value-chain workersâ health and safety or human rights. With the ambition to uphold the commit-ments outlined in Lundbeckâs policies, the audit re-sults are tracked and any ongoing issues are closely monitored and followed up on. The cases reported through the Compliance Hotline are addressed following a strict procedure for inves-tigations and tracking the occurrence of reports (see page 136). These processes are carried out as part ofthe normal work at Lundbeckâs departments. Lundbeck also maintains a procurement and third-party intermediary due diligence system, with the aim of limiting impact on suppliers and their work-force. For more information, see Responsible Sourc-ing on page 134. Consumers and end-usersLundbeck works day in and day out to ensure availability of neurological and psychiatric treatments. IRO name IRO type Value chain Upstream Own operations Downstream îó°£ó°£ Innovation in treatment Potential positive impact îó°£ó°£ Patient voice Potential positive impact Access to health îó°£ó°£ îó°£ó°£ - Inequality in access to health Systemic, potential negative impact - Risk of pricing, reimbursement îó°£ó°£ îó°£ó°£ Financial risk and access Product safety and quality îó°£ó°£ - Product safety and quality Systemic, potential negative impact - Risk of failure of îó°£ó°£ Financial risk pharmacovigilance îó°£ó°£ îó°£ó°£ Responsible and ethical marketing Systemic, potential negative impact See further details on page 66. Innovation in treatment Our approach (policies) In Lundbeck, we recognize that innovation is the life-blood of our business model and essential to our ability to deliver on our purpose of improving the lives of patients with brain diseases. Innovation in treatment is Lundbeckâs most valuable contribution to society and sustainable development. We are committed to driving focused innovation and curi-ously exploring new breakthrough treatments within neuroscience. This commitment is reflected in our business strategy, our investment in research and development (R&D), and our approach to collaborat-ing with external partners. Lundbeckâs global Focused Innovator Strategy, launched in 2024, is a cornerstone of our commit-ment to accelerating the development of new treat-ments for brain diseases. The Focused Innovator Strategy combines internal and external innovation elements to provide the business with the necessary tools to focus, scale and accelerate its R&D pipeline. Some key elements of this innovation approach en-compass, for instance: ⢠Patient-centricity: We prioritize the needs of pa-tients, ensuring that our research and development efforts are focused on areas where we can make the most significant difference. ⢠Scientific excellence: We are committed to con-ducting rigorous scientific research, employing cutting-edge technologies, and collaborating with leading researchers in the field of neuroscience. ⢠Focus on brain diseases: We concentrate our ef-forts on developing innovative therapies for brain diseases, an area of significant unmet medical need. The strategy was unveiled by the CEO, who is ac-countable for its implementation, and it is available internally via the intranet and has been communi-cated externally. Another critical innovation driver is the utilization of new technologies to explore novel treatment optionsfor certain brain diseases and develop innovative drug modalities. This approach accelerates R&D pro-cesses and offers opportunities for early risk mitiga-tion. For this, Lundbeck engages in important strate-gic partnerships with other companies to accelerate research and therapeutic innovation for neurologicaldiseases. In this sense, Lundbeck explores opportu-nities to strategically combine internal initiatives, and projects and resources with external opportuni-ties to complement and create a strong pipeline. Those actions comprise, for instance, external aca-demic collaborations and industry partnerships in-trinsic to success and other opportunities such as ac-quisitions. Furthermore, Lundbeck announced a capital alloca-tion program in 2024 to ensure the resources needed to implement the Focused Innovator Strat-egy and build a robust mid-to-long-term pipeline. Actions Innovation can take many forms, but the outcome isalways focused on how Lundbeck can improve the lives of patients and explore unmet medical needs. Based on the approach for our innovation in treat-ment, Lundbeck has taken the following actions to enhance innovation in its R&D pipeline and explore unmet medical needs: Strategic acquisitions to complement internal innovation In December 2024, Lundbeck announced the acquisition of Longboard, a pharmaceutical company re-sponsible for the discovery for bexicaserin. Bexicaserin has the potential to be a best-in-class treatment for seizures associated with Dravet syn-drome and Lennox-Gastaut syndrome, and a first-in-class option for other Developmental and Epileptic Encephalopathies (DEE). This addresses a critical un-met need for patients suffering from rare and severeepilepsies, for which there are very few, good treat-ment options available. This action aligns with our ambition to deliver break-through treatments and reinforces our leadership ina high-potential area, driving long-term growth and advancing solutions for patients who need them most. Addressing unmet needs Lundbeck is committed to addressing significant un-met medical needs across various severe debilitatingbrain diseases by expanding its innovation pipeline and enhancing treatment opportunities. Our pipeline progress presented on page 28 reflects our initiatives and projects in our R&D pipeline. We are successfully progressing our pipeline through a rigorous development process defining how we play when we let the biology, the molecule and the pa-tient speak. In November, Lundbeck initiated a phase III trial with amlenetug for the treatment of Multiple System Atrophy. MSA is a seriously debilitating disease with no available treatment options and amlenetug has the potential to be the first disease-modifying ther-apy with an option to slow clinical progression for people with MSA addressing a critical unmet need. In March, a clinical phase IIb dose-finding trial was initiated with Lu AG09222. Lu AG09222 has the po-tential to become first-in-class therapy for migraine prevention. Migraine is a complex and incapacitating neurological disease that imposes both a social and financial burden, affecting around 135 million people in the G7 countries plus China. Repeated migraine attacks, and often the constant fear of the next one, damage family life, social life, and work life. Lighthouse Life Science Another way Lundbeck is innovating is through pub-lic-private partnerships. Continuing in 2024, Lundbeck has been steering the public-private part-nership Lighthouse Life Science, which aims to en-sure better health and more equity in health, while strengthening economic growth. During Lundbeckâs lead from 2023-2025, the partnership focus in the partnership is on mental health. The Lighthouse aims to support the national 10-year psychiatry plan set by the Danish Government, with particular emphasis on following three priority areas: children and adolescents with mental health challenges, en-hanced treatment for severe mental disorders, and anti-stigma information campaigns. To ensure the effectiveness of the projects developed within the Lighthouse, evidence-based metrics are imple-mented to assess patient outcomes, with data sys-tematically collected throughout all project phases. Addressing mental health challenges require a strong collaborative effort across public and private stakeholders. Innovative solutions are essential to support individuals facing psychological challenges and to strengthen overall mental health across soci-ety. Strategic partnership to leverage AI for drug dis-covery In 2024, Lundbeck entered a strategic partnership with Iambic Therapeutics to leverage AI-driven drug discovery for neurological diseases, specifically tar-geting unmet needs such as migraine. By integratingIambic's advanced AI platform, including Neu-ralPLexer for protein-ligand structure prediction, thiscollaboration enhances the speed and efficiency of identifying novel therapeutic candidates. The part-nership reflects Lundbeck's commitment to innova-tion and the use of cutting-edge technologies to ac-celerate the development of transformative treat-ments, addressing complex brain health challenges and delivering solutions for patients with critical un-met medical needs. Reallocation of resources to support innovation Lundbeck's new 2024 capital allocation program plays a pivotal role in driving sustainable innovation by ensuring strategic investments in our R&D pipe-line. This disciplined approach enables us to priori-tize high-impact neuroscience projects, advance breakthrough therapies, and address critical unmet medical needs. By allocating capital to transforma-tive initiatives such as targeted acquisitions and technology-driven research, we are able to solidify our strong position to advance brain health. The capital allocation program underpins our ability to de-liver new treatments, enhancing patient outcomes while maintaining financial resilience and share-holder value. With this program, an R&D ratio in therange of 20â25% to accelerate and expand our R&D pipeline is expected. Targets There are currently no sustainability targets for Inno-vation in treatment, but its effectiveness is tracked through the work of the entire Lundbeck organiza-tion, including the effectiveness of new treatments for patients. The measure of progress in treatment innovation lies in the effectiveness of new therapies and their ability to improve patient lives, which is at the heart of Lundbeckâs work. Channels for engagement One important channel for engagement regarding innovation in treatment is centered in âletting the pa-tient speakâ, which is outlined in âPatient voiceâ page 121. Patient voiceLundbeck is dedicated to delivering transformative outcomes for individuals living with brain diseases. For several years, a key technique for accomplishing this goal has been to place the patient voice at the center of our work. Since 2020, Lundbeckâs R&D or-ganization has actively worked with âpatient-focused drug developmentâ principles to incorporate patient perspectives into the drug development process. This approach not only enhances the relevance of Lundbeckâs products for patients with lived experi-ence but also makes the development process more efficient and patient-centered. In the context of clinical trials, Lundbeck has devel-oped internal guidance for incorporating patient in-put into the design, conduct, and feedback pro-cesses, as well as a procedure for considering the in-clusion of representative populations in clinical re-search. Our approach (policies) Lundbeckâs Patient Centricity Strategy (link) is in-tended to establish a focus on the patient experience throughout the value chain. This requires prioritized and consistent partnerships with the lived-experience community across the organization, in-cluding in market activities, clinical trials, and the de-velopment of new medicines. The Patient Centricity Strategy sets out Lundbeckâs commitment to embedding patient centricity across the organization, thus informing and supporting lo-cal policies and company-wide initiatives. This strat-egy has been developed with the support of Lundbeckâs Patient Insights and Global Public Affairs departments, both of whom work directly with pa-tient communities. Furthermore, the strategy has been reviewed by several relevant external stake-holders, including patient organizations active in Lundbeckâs disease areas. Lundbeckâs commitment to being patient-driven aligns with its ethical stand-ards in research and business, adhering to the UNâs human rights-based approach to health. The strategy is approved by the Senior Vice Presi-dent (SVP) of Corporate Communications & Public Af-fairs, who is accountable for its implementation. The Patient Centricity Strategy is available at www.lundbeck.com, having been launched at the end of 2024. The strategy will be communicated externally to patient partners and collaborators in relevant patient communities. Actions Let the patient speak Lundbeck is committed to patient centricity, with the goal of integrating the patient voice throughout the lifecycle of products and across the organization. The patient perspective is woven into the fabric of Lundbeckâs operations through multiple initiatives, largely spearheaded by Lundbeckâs Patient Insights and Public Affairs departments, with their depart-ments leads holding operational responsibility. Such initiatives aim to âlet the patient speakâ and include inviting patients and caregivers to share their lived experiences with Lundbeck employees, establishing patient advisory boards for the disease areas repre-sented in Lundbeckâs pipeline, and actively seeking patient input in the design and operations of clinical trials. Direct engagement with patients and incorpo-rating inclusion and diversity in such engagements are key components of addressing the patient voice in Lundbeckâs activities. Further, Lundbeck collects patient experience data to ensure a comprehensive and representative un-derstanding of the patient voice. While there is cur-rently no action plan specifically dedicated to the pa-tient voice, this integrated approach allows for the comprehensive and continuous inclusion of patient perspectives in all aspects of Lundbeckâs work. Lundbeck is currently exploring possibilities for ob-taining feedback on patient involvement, for in-stance through satisfaction surveys as inputs to measuring positive impact. Targets Lundbeckâs approach to patient centricity through embedding the patient voice in the development of medicines is tailored to the individual needs and op-portunities for specific compounds within Lundbeckâs pipeline. Given the recent launch of the Patient Centricity Strategy, Lundbeck does not cur-rently have targets or other methodologies in place to track its effectiveness. Access to healthOur approach (policies) As a global pharmaceutical company, Lundbeck sig-nificantly impacts individualâs access to health. Rec-ognizing the importance of this issue, Lundbeck has established several governing policies, with the cor-nerstone being the Global Access to Health Strategy (link). This strategy constitutes Lundbeckâs overarching global policy for access to health and outlines our as-pirations for supporting policy change, raising awareness, advocacy, education, and product dona-tions to enhance access to health for all. Approved by the Executive Management in 2020, the strategy aligns with the Sustainable Development Goal 3 (Good Health and Wellbeing) as well as the WHOâs 4 Right to Health principles and Guidelines for Medi-cine Donations. Although these guidelines empha-size the importance of respecting human rights and engaging with consumers and end-users, they do not detail specific measures for addressing human rights impacts nor include a dedicated policy for remedying such impacts in the context of access to The strategy is publicly available on Lundbeckâs web-site and in our Sustainability Reports since 2020. Global advocacy Lundbeck continuously wants to learn from people with lived experience, their families, and the healthcare community. For the past 10 years, Lundbeck has hosted an annual global advocacy event, the #1VoiceSummit. This event, which is the responsibility of Lundbeckâs SVP of Corporate Com-munication & Public Affairs, unites global and local patient communities to share best practices, ex-change ideas, collaborate, and amplify the voices of those with lived experiences of neurological and psy-chiatric disorders. The latest #1VoiceSummit, held in June 2024, featured over 60 participants from 35 dif-ferent patient advocacy groups in neurological and psychiatric health, representing 10 countries. Global pricing Lundbeck acknowledges the challenges faced by healthcare systems under pressure from rising de-mands, and it recognizes concerns expressed on the affordability of innovative medicines. Lundbeckâs Global Pricing Position (link) emphasizes our commitment to making our innovative medi-cines affordable and accessible, acknowledging the financial challenges faced by healthcare systems worldwide. The Pricing Position outlines our commit-ment to implement pricing strategies that reflects the value of Lundbeckâs treatments while consider-ing the economic conditions of different markets. Additionally, Lundbeck collaborates with healthcare providers, authorities, patients, and policymakers to address pricing concerns and enhance access to es-sential treatments. This ensures that the prices of Lundbeckâs treatments not only support the com-panyâs business objectives, but also address the needs and concerns of those directly impacted by their implementation. Endorsed by Executive Management, the Pricing Po-sition is developed by Lundbeckâs Global Pricing de-partment, which is also responsible for setting and approving prices. Lundbeck respects various third-party standards and initiatives by ensuring that our pricing strategies align with global healthcare regu-lations and ethical guidelines, thereby enhancing the affordability and accessibility of our medications. The Pricing Position is made available on Lundbeckâs website. Actions Unlocking patient access through pricing To achieve sustainable patient access pricing must be fair relative to the market conditions in which Lundbeck operates. The key objective of the Pricing and Market Access department is to unlock sustaina-ble patient access, achieving the broadest possible access to patients in need while running a commer-cially sustainable business. Accomplishing this re-quires dedicated attention to Lundbeckâs pipeline to ensure that the value proposition and differentiation of our assets are as strong as possible and are suita-ble for payer assessment. This approach aims to se-cure favorable payer decisions, enabling patients to access and afford our medications in various coun-tries. In addition, a governance process anchored with members of Executive Management is in place to facilitate a careful review of price launches and approvals worldwide. From 2025 and onwards, an equity-based tiered pricing framework will be devel-oped to facilitate the development of price policies Partnering with the Red Cross for psychosocial support in Ukraine In December 2023, Lundbeck committed DKK 5 mil-lion to support Danish Red Cross Mental Health and Psychosocial Support (MHPSS) activities in Ukraine during 2024 and 2025. In alignment with this com-mitment, DKK 2 million has been paid in 2024. This funding will enable the Ukrainian Red Cross to ex-pand vital psychosocial support for vulnerable chil-dren and adults affected by the war, including psy-chological first aid, child-friendly spaces, and training for Red Cross volunteers and staff. Lundbeck tracks the effectiveness of its implementation of this action through annual impact reports from the Danish Red Cross, which detail activities, resource allocation, and participation. Based on these evaluations, adjust-ments are made for the following year such as changing workshop locations, timings, and methods to better address mental health challenges. Considering the decrease in Access to Health be-cause of the war, Lundbeck identified the necessary actions to address the increase in mental health problems in Ukraine through dialogue with internal and external stakeholders. The Danish Red Cross provided expert knowledge and firsthand accounts from Ukraine, and Lundbeckâs remaining employees in the country confirmed the appropriateness of the MHPSS program. Targets Medical education Lundbeckâs 2024 target to promote access to healthcare entails launching a global platform through the Lundbeck Institute to provide independ-ent medical education to healthcare professionals. This target reflects Lundbeckâs understanding that an adaptive and personalized approach to address-ing healthcare professionalsâ learning needs will im-prove patient outcomes and healthcare resilience. The medical education platform builds on Lundbeckâs long-standing history of providing evi-dence-based neurology and psychiatry educational material and training. The platform will enable the measurement of the learning activities, the outcome, and the effect on access to health in underserved ar-eas. The target was met with the global platform launched in early 2024, with Canada serving as the pilot subsidiary. It is currently being assessed whether the platform should be expanded into new geographies and disease areas from 2025 onward. Product donations Lundbeck also has set an annual target for reaching patients in low- and middle-income countries through donations. For four years, Lundbeck has partnered with International Health Partners (IHP), who has aided Lundbeck in growing the charitable donation program. This partnership ensures that the targets are both realistic and ambitious. Upon re-quest, Lundbeck donates medication through chari-table clinics in the low- and middle-income countries. These donations, manufactured specifically for this purpose, enable IHPs to run targeted programs in the region through their network of partner clinics. This initiative supports Lundbeckâs Global Access to Health Strategy by providing access to underserved communities and supporting people affected by neurological and psychiatric conditions. The impact of these donations is measured by the number of patients reached, with a target of 2,500 patients for 2024. Lundbeck achieved its target, with an esti-mated 5,860 patients reached through the donated treatment in low- and middle-income countries. The performance against the targets is tracked an-nually and reported externally in the annual report, with Lundbeck having met or outperformed the tar-get each year so far. Lundbeck, in collaboration with NGO IHP, has consulted clinics to estimate the need for donated products over the next five years, con-sidering likely scenarios of conflict, economic crisis, and refugee camps. Based on these insights, Lundbeckâs global supply chain, product quality, and corporate compliance teams have set realistic an-nual targets, accounting for the time and resources needed for due diligence when expanding to more clinics, countries, and products. Channels for raising concerns and remediation While Lundbeck does not currently have a specific channel in place regarding addressing concerns on Access to Health, we encourage patients and healthcare professionals to utilize Lundbeckâs other available channels, such as, the adverse event re-porting page on www.lundbeck.com, or by contact-ing Lundbeck directly, to address concerns. 2024 Target Status 2025 Target SDG Launch global platform to provide access to healthcare professionals with independent medical N/A education through Lundbeck Institute activities Donate treatment for at least 2,500 patients in low- Donate treatment for at least and middle-income countries (LMICs) through prod-3,000 patients in LMICs through uct donation partnership product donation partnership Achieved Not achieved On track Not on track 1 Access to Health Unit 2024 2023Estimated pa-Donated treatment in low-middle income countries tients 5,860 3,325 In 2024, donated treatments increased from 3,325 in 2023 to 5,860, driven by expanded regional coverage, higher partner requests, and emergency response efforts. The majority of donations were directed to Ukraine, with smaller contributions to Syria and Lebanon. Patients reached Unit 2024 Full-year pa-Patients reached tients in millions 7.2 The estimated patient years reached with Lundbeckâs portfolio of medicinal products amounted to an esti-mated average of 7.2 million patients worldwide. This estimate, derived from sales data for Lundbeckâs prod-ucts (excluding partner products), highlights the significant reach and impact of our portfolio in addressing the needs of individuals living with brain diseases.Accounting policies Access to Health Donated treatment in low- and middle-income countries refers to the number of patients potentially reached through Lundbeckâs medicine donation program. The number of patients potentially reached is estimated by dividing the total number of doses prepared for shipment by the recommended average treatment dose per patient per year. The recommended dosage for these products may not accurately reflect the recommended or prescribed dose. Actual doses and treatment durations for patients are determined based on individual characteristics (e.g., type and severity of the disease, age and weight). Patients Reached Patients Reached refers to the number of patients potentially exposed to a specific Lundbeck drug or treat-ment over a one-year period. The number of patients reached with Lundbeck products is estimated at the product level by dividing the total sales volume (in milligrams) of each product by the respective estimated average dose, treatment duration, and the number of days in a year. Total sales volume (in milligrams) for December is estimated based on De-cember 2023. The average dose is based on the Defined Daily Dose (DDD) as defined by the World Health Or-ganization (WHO), while the average treatment duration is determined according to the Company Core Safety Information (CCSI). Partner products are excluded. The WHO-defined daily dosage for these products may not accurately reflect the recommended or prescribed daily dose. Actual doses and treatment durations for patients are determined based on individual characteris-tics (e.g., type and severity of the disease, age and weight), and due to this fact, a treatment duration average has been used for the exposure estimation. Product safety and quality Our approach (policies) Product safety and quality are fundamental priorities for Lundbeck. Our commitment to product safety and quality is guided by two key policies, whose ob-jectives are to protect the patients taking our medi-cines. Product quality Product quality is managed according to Lundbeckâs Quality Policy, which is established by Executive Management and for which the CEO is accountable. The Quality Policy focuses on delivering effective products at the correct level of safety for psychiatric and neurological diseases, fostering a culture that prioritizes quality, and ensuring employee accounta-bility. To achieve these goals, the policy entails com-pliant systems designed to withstand regulatory in-spections, the integration of quality from the outset to minimize defects and complaints, and the regular evaluation and improvement of Good Practice (GxP) systems and processes. The policy covers all person-nel involved in GxP activities, particularly in manufac-turing and distribution. Lundbeck adheres to all relevant national, EU, and international legislation and standards regarding product quality. Accordingly, the Quality Policy is in-formed by regulatory bodies to ensure patient inter-ests are prioritized. The policy is shared internally with all employees through awareness training, and employees in GxP areas must document their under-standing with their signature. The Quality Policy and its supporting guidelines ensure that products are manufactured and distributed in compliance with GxP, aligning with health authoritiesâ regulations and enabling the right to health and safety for consum-ers and end-users. To adhere to the UN Guiding Principles on Business and Human Rights, Lundbeckâs Corporate Product Quality department ensures that market-ready products are of the right quality and available in sufficient quantities to meet patient needs. Product safety Lundbeckâs approach to product safety is guided by its robust pharmacovigilance system, operationally overseen by Lundbeckâs dedicated Global Patient Safety department, as described in the Pharmacovig-ilance System Master File (PSMF). The PSMF outlines Lundbeckâs procedures for handling safety information, describes the global pharmacovigilance system, and provides the basis for Lundbeckâs for-malized processes covering the key aspects of phar-macovigilance. These include monitoring of the ben-efit-risk profile of the products and risk management systems, evaluating all safety reports from patients and healthcare professionals (HCPs), and that a busi-ness continuity plan is in place to ensure the ongo-ing operation of pharmacovigilance processes in the case of a significant disruption to Lundbeckâs phar-macovigilance system. The procedures specified in the PSMF ensure that all information received from patients or HCPs is captured and evaluated as part of the ongoing benefit-risk evaluation of Lundbeckâs products. The PSMF and all specified procedures comply with regulatory requirements set by the EU and health authorities worldwide, including Guide-lines on Good Pharmacovigilance Practices modules in the EU, ensuring compliant pharmacovigilance ac-tivities for all Lundbeck products worldwide. Lundbeckâs Executive Management is overall respon-sible for having a compliant pharmacovigilance sys-tem in place. The PSMF is an internal document ac-cessible through Lundbeckâs electronic document management system. Actions One of the key actions undertaken by Lundbeck to ensure product safety and quality is the annual Qual-ity Management Review (QMR) of the Quality Man-agement System (QMS). The QMS, which is audited on a predefined periodic basis by Corporate Product Quality (CPQ), covers the production sites in Valby (Denmark), Valbonne (France), LumsÃ¥s (Denmark), and Padova (Italy) and covers the QMS for the manu-facturing of medicinal products for commercial mar-kets. The elements of the QMS related to patient safety are audited by R&D Quality. The QMR reviews the suitability and effectiveness of the QMS and in-vestigates ten key compliance parameters, such as âSignificant findingsâ, and the associated corrective actions, from internal auditsâ. The results of this re-view are presented to Executive Management. Appropriate action is taken based on received com-plaints or issues identified through the pharmacovig-ilance system â see the âRemediating Product Safety and Quality Concernsâ on this page for details. In ad-dition, a coordinated process is in place across vari-ous GxP areas to ensure that corrective and preven-tive actions are taken to prevent, mitigate, and avoid recurrence of non-conformities and deviations. To track reported issues and ensure that products are produced at the right quality, the QMR includes an assessment of previous reviews and corrective ac-tions taken for previously highlighted concerns. Engaging with consumers and end-users about product safety and quality impacts Engagement with patients regarding product safety and quality is highly regulated, involving the provi-sion of safety information and the handling of re-ports on adverse events. These reports, submitted by patients, healthcare professionals, or proxies through the Pharmacovigilance System, are col-lected locally or at headquarters by Global Patient Safety (GPS), who is responsible for the further pro-cessing of data, medical evaluation, and reporting to relevant health authorities and business partners as per requirements. Lundbeck also engages with end-users by providing safety information in the patient information leaflets in medication packages, outlining potential side ef-fects in the local language. This engagement is fre-quent and managed by Lundbeckâs robust Safety Governance structure, including the global GPS func-tions and the Qualified Person for Pharmacovigi-lance (QPPV), who is appointed by Executive Man-agement and notified to the European Health Au-thorities. In Corporate Product Quality (CPQ), direct engagement regarding commercial products with consumers and end-users is generally avoided to prevent introducing biases that might influence the use of Lundbeck products. CPQ ensures that any product quality complaints are filed, investigated, evaluated, and answered. The effectiveness of these engagements is evaluated as part of Lundbeckâs commitment with the health authorities to ensure risk minimization. Targets Lundbeckâs Quality Management System and Phar-macovigilance Systems are continuously monitored and evaluated, thereby adhering to strict regulations upheld by the Quality Policy and the procedures de-scribed in the Pharmacovigilance System Master File. While no external targets are set, continuous moni-toring of product safety profiles is ensured through ongoing safety surveillance and signal management activities, utilizing information from non-clinical, clin-ical, and post-marketing sources. Through these pro-cedures, Lundbeck ensures that all products are of the right quality at the right time, in accordance with the various legislation that Product Quality must fol-low. Remediating product safety and quality concerns Product quality The quality and specifications of each Lundbeck product are predefined and approved by rele-vant health authorities prior to manufacturing. In the case of a negative impact due to insuffi-cient product quality, Lundbeck engages with health authorities, which enforce the strict regu-lations governing Lundbeckâs Quality Manage-ment. Patients, HCPs, and other stakeholders canraise quality-related issues through dedicated channels provided by Lundbeck. All complaints regarding commercially marketed products are handled through the Quality Management Sys-tem, ensuring the complaints are filed, investi-gated, evaluated, and answered. Product safety The procedures outlined through Lundbeckâs Pharmacovigilance System are activated in the case of reported adverse events related to prod-uct safety, which may be reported to Lundbeck from several sources worldwide such as clinical trials, patients, caregivers, and HCPs. Lundbeck continuously evaluates safety information from various sources to assess the benefit-risk profile for patients. Global Patient Safety analyzes ag-gregated data to communicate product benefits and risks to patients, healthcare providers, and regulators. All potential safety issues are reviewed by inter-nal Safety Committees, which recommend risk mitigation strategies. These recommendations are then endorsed by the Safety Board. In the event of significant safety issues impacting pa-tients the Safety Board is mandated to decide on product recall due to negative benefit-risk, imple-ment safety updates in product labels to ensure the most current information is available, and/or pause global development activities for safety reasons. Communication to stakeholders, such as patients or HCPs, about the potential risks of Lundbeck products is highly regulated by health authorities. The method of communication to stakeholders depends on the potential impact; for instance, it may be through updated label in-formation, direct communication to HCPs, or via communication by health authorities, web chan-nels, and more. The availability of this communi-cation will therefore be as diverse as the method, and Lundbeck supports the availability of this communication by following the relevant legisla-tion. While there are no specific anti-retaliation poli-cies in place regarding patients or other stake-holders raising product safety and quality con-cerns, Lundbeckâs Anti-Retaliation Policy in rela-tion to whistleblowers comes into effect if a re-port is submitted through the Compliance Hot-line. See page 133 for more details. Responsible marketing Our approach (policies) One of Lundbeckâs primary responsibilities is to en-sure appropriate and ethical promotional activities, as outlined in the Code of Conduct (link). By adhering to the Code of Conduct, Lundbeck employees com-ply with applicable laws and regulations, use accu-rate and approved promotional materials, do not promote off-label uses, and properly control medici-nal product samples. The Code of Conduct applies globally and is crucial for all employees involved in creating or handling materials intended for external use. The highest level of accountability for imple-menting the Code of Conduct lies with the CEO, with the authority to delegate responsibilities to the Gen-eral Counsel. Lundbeck is committed to respecting all applicable laws regarding ethical marketing, and further up-holding the related standards outlined in the Euro-pean Federation of Pharmaceutical Industries and Associations (EFPIA) and International Federation of Pharmaceutical Manufacturers and Associations (IFPMA) codes. By following the Code of Conduct, Lundbeck prioritizes patient interests, directing all marketing to healthcare professionals (HCPs), except in the US and New Zealand where direct-to-patient marketing is permitted. Additionally, Lundbeckâs marketing development and communication pro-cesses are designed to work together to uphold ethi-cal standards. The Code of Conduct is accessible in-ternally on the intranet and externally on www.lundbeck.com. An annual training is mandated for employees, and certain suppliers and partners must affirm their adherence to the principles set out in the Code of Conduct. For further details on the Code of Conduct, see page 131. Actions Lundbeckâs Promotional and Advertising Review Committee (HQ-PARC) continuously reviews and ap-proves promotional activities and materials pro-duced at Lundbeckâs headquarters to ensure compli-ance with applicable laws and the EFPIA and IFPMA codes. Lundbeckâs subsidiaries are responsible for ensuring that promotional activities, including mate-rials, are reviewed and approved in accordance with applicable local codes and rules before the materials are used within the specific local market. Identifying the appropriate measures to take to ensure the in-tegrity of Lundbeckâs marketing materials is embedded in all that these functions do and is sup-ported by a hierarchy of decisions to assess any po-tential risks posed by a given piece of promotional material. As the review processes conducted by HQ-PARC and the equivalent bodies in local subsidiaries are embedded into their daily work, Lundbeck does not currently undertake additional specific initiativesregarding responsible and ethical marketing. In ad-dition to the daily operations, Lundbeck engages in compliance network with other companies to align interpretations and approaches regarding marketingpractices. Potential marketing-related impacts canbe reported via Lundbeckâs Compliance Hotline (see page 133). Lundbeck puts considerable re-sources towards responsible and ethical marketing, as HQ-PARC, local PARC responsible, and the marketing and medical departments, both at headquarters and locally at subsidiaries, all play a role in managingthe ethics of Lundbeckâs promotional and advertisingmaterials. Engaging with consumers and end-users As patients may by default be particularly vulnerable to potential negative impacts stemming from a lack of responsible and ethical marketing, Lundbeck also prioritizes gaining insight from patients and HCPs on their perception of promotional materials in order to avoid negative impacts. To assess whether promo-tional communications are accurately understood and well-received, Lundbeck conducts anonymous surveys both directly with patients and HCPs, and through credible proxies such as patient organiza-tions and related agencies. All engagements are strictly regulated by the EFPIA Code of Practice. Lundbeckâs Marketing Analytics department uses the received feedback to optimize promotional messag-ing, ensure the clarity of future materials and high-lighting any unmet needs. In the case that changes are warranted, the local subsidiaries review their communication strategies to incorporate new learn-ings. The responsibility for ensuring engagement and incorporating feedback into Lundbeckâs ap-proach lies with the Senior Vice President for Medical Affairs and the General Counsel, who both sign off on the process. Remediation and channels for raising concerns Regarding marketing practices, Lundbeck adheres to the standards and expectations set by the relevant regulatory bodies, with remedies for identified mate-rial negative impacts including paying fines, with-drawing materials, and making public corrections. Lundbeck also engages in self-regulation and mutual surveillance across the pharmaceutical industry to ensure compliance. Issues related to promotional behavior can be raised via the Compliance Hotline or to relevant authorities and external ethical bodies, as there is no specific channel dedicated to raising concerns over Lundbeck's marketing. The Compliance Hotline is both internally and externally available on www.lundbeck.com. Please see page 133 for more information on the Compliance Hotline and the Anti-Retaliation and Whistleblowing Policy. As a member of several ethical committees for the pharmaceutical industry, such as the Danish Ethical Committee for the Pharmaceutical Industry, Lundbeck handles complaints through these rele-vant channels. Additionally, Lundbeck has an estab-lished, broad-reaching medical information service where patients and HCPs can raise concerns and re-ceive a prompt reply. Issues raised through the med-ical information service are continuously tracked and monitored through yearly reports, and Lundbeck further receives an annual report from the ethical body covering all pharmaceutical companies in Den-mark regarding reported concerns. Targets Lundbeck tracks the effectiveness of its work to-wards responsible and ethical marketing by monitor-ing formal complaints as well as social media for any integrity issues. Each type of potential issue identi-fied via social media is managed through a specific process in place within Lundbeckâs Corporate Com-munication department. The level of ambition re-garding progress towards responsible and ethical marketing is set by the CEO and the Board of Direc-tors, with no specific targets or indicators being cur-rently used to evaluate progress. Health as a human right As a focused innovator committed to advancing brain health, it is crucial for Lundbeck to con-tinue enhancing its understanding of the impact it has on patients, from their own perspective, by continuously assessing risks related to human rights violations. Lundbeck is committed to safe-guarding the health of patients, employees and value chain workers by continuously upholding the commitments it makes in the Human Rights Statement (link) (see pages 116-117). Lundbeckâs policies, actions, and targets outlined in the Consumers and End-users section on pages 119-128 reflect Lundbeckâs commitment to these human rights principles and operationalize our efforts to avoid causing or contributing to any significant negative impacts on consumers and end-users. In addition to Lundbeckâs commitment to adher-ing to relevant legislation and engaging with health authorities to address any potential nega-tive impacts, Lundbeck engages with patients and other end-users in different ways depending on how they may be potentially impacted. Simi-larly, due to the diverse types of impact that may occur, there is no one-size-fits-all approach to re-mediation of such potential impacts. Rather, vari-ous channels are available to address any raised issues. Governance In this section 130 Business conduct Business conduct At Lundbeck, we pursue our business purpose guided by the ethical princi-ples in our Code of Conduct, as a fundamental element of our Sustainability Strategy. IRO name IRO type Value Chain Upstream Own Operations Downstream Business Ethics - Business Ethics Potential negative impact ó°£ - Code of Conduct breach Financial risk - Responsible sourcing Potential negative impact Animal welfare Actual negative impact See further details on page 67. Lundbeckâs corporate culture Code of Conduct Lundbeck pursues its business purpose guided by the ethical principles set out in its Code of Conduct. The Code of Conduct (link) provides the framework, commitment, and expectations for how Lundbeck conducts business in a fair, transparent, and ethical manner, with particular attention to areas that are critical to Lundbeck and the pharmaceutical industry, such as anti-corruption, fair and open competition, and animal research. All employees are obliged to abide by the Code of Conduct. Third parties working on behalf of Lundbeck, or in our interest, are also obliged to comply with the Code of Conduct and meet the high standards of performance and integ-rity we set for ourselves internally. When it comes to establishing a corporate culture structured around ethical business conduct, Lundbeckâs CEO and Executive Management set the tone from the top. As chair of the Global Compliance Committee, the CEO signs the Code of Conduct, which is approved by the Board of Directors. The Board of Directors and the Executive Management are held accountable for its implementation and ef-fectiveness. Each member of the administrative, management, and supervisory bodies is carefully chosen to be a part of Lundbeck based on their qual-ifications and expertise, including their experience in business conduct matters. Lundbeckâs Global Compliance Committee, which represents the Executive Management, meets regu-larly to maintain oversight of the Code of Conduct and the Compliance Program. At the operational level, the Code of Conduct is managed by Lundbeckâs Global Compliance department. The Code of Conduct is communicated in a struc-tured process and is available on www.lundbeck.com and our intranet. Further, internal procedures and guidelines are available on Lundbeckâs internal trans-parency site and document system. Compliance governance and oversight Lundbeckâs Global Compliance Committee oversees the implementation of the Compliance Program. In 2024, Lundbeck also established the Compliance Council, consisting of members of Executive and Senior Management, with the purpose of sharing in-formation about key developments, providing input to the Global Compliance Committee, and acting as ambassadors for the Compliance Program within the respective organizations. Our internal network of Regional Compliance Offic-ers (RCO), who provide advice and support to com-mercial regions and subsidiaries around the globe, is continuously assessed and strengthened. In June 2024, the RCO Summit took place in Copenhagen, where we focused on strengthening the global com-pliance community and harmonizing our efforts. Lundbeckâs Compliance Program is continuously im-proving and evolving. In 2024, we updated our Third-Party Intermediary Due Diligence process, Anti-Retal-iation and Whistleblowing Policy, global internal in-vestigation procedure, introduced new digital solu-tions for compliance performance management, re-porting, and third-party screenings, and launched a speak-up campaign. Our ongoing improvement efforts are supplemented by our internal business ethics audits and monitor-ing activities. In 2024, our business ethics audits in-cluded Lundbeckâs subsidiaries and global functions and processes. In addition, we piloted a new meth-odology related to deliverables and timelines, which supported expediting reporting and remediation of actions. Business ethics audits ensure the consistent implementation of the respective policies and re-quirements, identify risks, and capture suggestions for enhancing processes and controls. Ethics and compliance training Lundbeck continuously works to maintain awareness and train employees on ethical business conduct. All employees across all functions at Lundbeck, includ-ing the administrative and management bodies, are annually requested to complete the corporate Code of Conduct training. The training is an e-learning module that educates employees on the expecta-tions of Lundbeckâs Code of Conduct and requires the completion of several exercises that promote awareness on how to act in situations that pose an ethical or compliance-related concern. As the main supervisory body, the Board of Directors receives training during its personal onboarding and is of-fered a refresher training. Relevant external consult-ants are assigned the training by their local subsidi-ary or global function. Business ethics Anti-corruption and bribery Our approach (policies) In alignment with the UN Convention against Cor-ruption, the Foreign Corrupt Practices Act (FCPA), theUK Bribery Act, the OECD Guidelines, and the Sus-tainable Development Goals, Lundbeck has several policies and procedures in place to prevent and man-age the material impacts and risks related to corruption and bribery. The key policy is Lundbeckâs Code of Conduct (link), which under-scores the expectation for all employees and third parties to adhere to our systems and processes for avoiding corruption, fraud, and bribery. The key procedure supporting the anti-corruption and bribery principles upheld by the Code of Con-duct is Lundbeckâs Guideline on Interactions with Healthcare Professionals (HCPs), Healthcare Organi-zations (HCOs), Patient Organizations, and Patients. The guideline and its supporting procedures are intended to ensure that interactions between Lundbeck and these high-risk stakeholders are legal, ethical, and do not constitute an inducement to rec-ommend, prescribe, purchase, supply, sell, or admin-ister a medicinal product. The Guideline is approved by Lundbeckâs General Counsel, while the CEO holds ultimate accountability for its implementation. It is available internally to employees on Lundbeckâs in-tranet and document management system. All parties working for or on behalf of Lundbeck are subject to the anti-corruption and bribery principles upheld through the Code of Conduct and the Guide-line on Interactions, including Lundbeck functions that frequently interact with high-risk stakeholders such as Commercial Marketing, Sales, Medical Af-fairs, Clinical Development, Regulatory, Procure-ment, R&D, and Public Affairs. Lundbeck is commit-ted to protecting the interests of its key stakeholders by complying with national laws and industry associ-ation regulations, as well as by promoting aware-ness on the standard of conduct to be upheld in the context of high-risk interactions. Actions and targets Upholding anti-corruption and anti-bribery principles is a core component of Lundbeckâs Compliance Pro-gram. No specific actions regarding this topic were necessary in 2024, due to the continuous improve-ments made as part of the Compliance Program. See relevant activities in the Compliance Governance andOversight section on page 131. Code of Conduct e-learning completion rate There are two targets in relation to anti-corruption and anti-bribery. The first is a 98% completion rate ofthe annual Code of Conduct e-learning by employeesassigned to it between 30 September and 1 October. Contingent workers are made aware that they must follow the Code of Conduct in their contract, either with the individual consultant, or in the agreement with their company. The completion rate is meas-ured in the timeframe of 30 September to 31 Decem-ber. Throughout this period, the completion rate is monitored as the Global Compliance team runs a completion rate report daily via Lundbeckâs Learning Management System (LMS). Reminders are sent to management, Executive Management and Regional Compliance Officers (RCOs) to ensure completion within their respective areas. The e-learning reviewsthe core topics covered in the Code of Conduct, withscenarios and tests that support employees in enacting expected behaviors in their everyday work. Lundbeckâs Compliance Committee approves the target annually. In 2024, Lundbeck met its target, achieving a 100% completion rate. 2024 Target Status 2025 Target SDG Annual Code of Conduct training completed Annual Code of Conduct training completed by at least 98% of employees at work globally. by at least 98% of employees at work glob-ally. Four out of five employees stating in the an-Four out of five employees stating in the an-nual employee satisfaction survey (ESS) that nual ESS that they are confident in raising they are confident in raising an ethical or an ethical or compliance concern. compliance concern. Achieved Not achieved On track Not on track Confidence in raising an ethical or compliance concern The second target is to achieve four out of five em-ployees stating in the annual employee satisfaction survey (ESS) that they are confident in raising an eth-ical or compliance concern. The target reflects that employees trust that ethical issues are addressed fairly and that compliance con-cerns are taken seriously across the company. The ESS is shared annually with all employees globally, except for contingent workers, employees who joined the company shortly before survey launch, and employees with their last working day at Lundbeck shortly before launch. The target is approved by the Global Compliance Committee and monitored through the results of theESS. The ESS is anonymous and provided by an ex-ternal company, with Lundbeck designing the ques-tions. In 2024, Lundbeck achieved its target, with survey results confirming that 4.6 out of 5 employees feel comfortable raising an ethical or compliance con-cern. Protection of whistleblowers Our approach (policies) Lundbeckâs Anti-Retaliation and Whistleblowing Pol-icy establishes protections for individuals who report alleged or actual violations of Lundbeckâs Code of Conduct, internal policies and procedures, or appli-cable laws and regulations. This policy provides as-surance that good-faith whistleblowers will be pro-tected to the required extent under applicable law and in accordance with Article 6 (Conditions for Pro-tection of Reporting Person) and Article 19 (Prohibition of Retaliation) of the EU Whistleblowing Directive (EU Directive 2019/1937) and/or relevant local whistle-blower laws. The Anti-Retaliation and Whistleblowing Policy applies globally to all employees and to mem-bers of the Board of Directors, agents, consultants, contract workers, and others representing or acting for or on behalf of Lundbeck. Lundbeckâs Executive Management is responsible for ensuring the proper rollout and implementation of Lundbeckâs ethical standards. This is done via the Compliance Program, for which the accountable party is the SVP, and the General Counsel within Global Legal, Compliance, and Sustainability. The Compliance Program includes, but is not limited to, auditing and monitoring confidential reporting and investigations, as well as policies and procedures, which include the Anti-Retaliation and Whistleblow-ing Policy. The policy is made available internally on Lundbeckâs intranet as well as its internal document system. Prevention and detection of ethical concerns Lundbeck encourages employees to have an ongo-ing dialogue about compliance and ethics with their colleagues and managers. However, Lundbeck rec-ognizes that some questions, dilemmas, or concerns may not always lend themselves to open discus-sions. In such cases, employees are encouraged to contact the relevant corporate function (e.g., People and Culture, Legal, Compliance) to seek advice. Seri-ous compliance concerns can always be reported by internal or external parties in full confidentiality to Lundbeckâs Compliance Hotline. Whistleblowers are protected according to Lundbeckâs Anti-Retaliation and Whistleblowing Policy, as described in the Pro-tection of Whistleblowers section. Lundbeck has a dedicated Compliance Hotline and Global Compliance Investigation team to investigate business conduct incidents promptly and objectively, guided by the global investigationsâ procedures. An established process and escalation route ensure that investigations are handled independently and free of any conflict of interest. All new employees are assigned a course on the Compliance Hotline, and Lundbeck periodically pro-vides further training and promotion of the Hotline and on the reporting of ethical and compliance con-cerns to employees. In 2024, a speak-up campaign was also launched to create additional awareness about the Compliance Hotline. New reports to the Hotline are investigated by two designated compli-ance investigators. They were hired as skilled investi-gators, and continuously undertake relevant training and education, e.g., on investigations and fraud. Global Compliance periodically reports an anony-mized summary of globally reported claims of mis-conduct to the Audit Committee and the Global Com-pliance Committee. The total number of cases re-ported to the Hotline is included in Lundbeckâs An-nual Report. Investigation conclusions and recommendations may be shared with the Audit Committee, Global Compliance Committee, and/or Executive Manage-ment for endorsement or further action. While Global Compliance is responsible for the investiga-tion of potential misconduct, management is re-sponsible for securing remedial or disciplinary ac-tions. Actions and targets The ambition of the whistleblowing program is to comply with the EU whistleblower regulations on communication with reporters, including to reply to all good faith reporters within seven days, and to handle all cases in an appropriate, objective, fair, and timely manner. No significant actions were needed in 2024, as our Compliance Program con-ducts effective monitoring as part of regular operations. Similarly, there are no targets regarding protection of whistleblowers, as effectiveness is tracked through the accounting of all reports to the Compliance Hotline, which is conducted as part of the regular process within the Global Compliance team. Fair and open competition Our approach (policies) Lundbeck is committed to the principle of fair, free, and efficient competition, as upheld by the Code of Conduct (link). Through dedicated policies and proce-dures Lundbeck ensures compliance with EU and na-tional competition laws, works to conduct our busi-ness in a fair, transparent, and ethical manner, and strives to prevent any actions that may restrict com-petition in a given market. Lundbeck applies these principles throughout its business and aims to pro-mote an understanding of and compliance with com-petition law throughout its value chain. In the Code of Conduct, Lundbeck lays out several expectations and standards of conduct for employ-ees to prevent breaches of competition law and en-sure that the principle of fair and open competition is followed. For more information, see page 131. Actions and targets No key actions or targets regarding fair and open competition were set in 2024, but the topic has been managed in a number of ways. A dedicated legal team has conducted a competition law risk analysis which has involved drafting and publishing a Compe-tition Law Policy as well as bespoke guidelines on identified material issues. This policy and associated guidelines will enhance Lundbeckâs ongoing commit-ment to fair, free, and efficient competition. Moreo-ver, key employees within Legal and Compliance have received extensive competition law training and individual training of additional employees out-side the Legal and Compliance organization is sched-uled. The number of employees receiving the train-ing is tracked. Responsible sourcing Our approach (policies) Lundbeck has policies and processes in place with the aim of mitigating negative impacts and risks re-lated to our supply chain. A risk-based approach re-garding new suppliers is in place, focused on manag-ing significant risks to the company and prioritized risks to society. Prior to commitment, all new suppliers with an ex-pected commitment of over DKK 1 million are as-sessed against eight core risks to Lundbeck, includ-ing the potential critical impact on Lundbeckâs core business operations, IT security, and IT rights. Sup-pliers that fall within the definition of third-party in-termediaries undergo a stricter supplier due dili-gence process, governed by the Third-Party Interme-diary Due Diligence (TPIDD) Standard Operating Procedure (SOP). Third-party intermediaries are de-fined as professionals and entities performing activi-ties within Lundbeckâs core business areas on behalf of, or in the interest of, Lundbeck. The TPIDD process is designed to review and moni-tor risks primarily related to bribery and corruption, fraud, and conflicts of interest, while also covering other risks related to trade sanctions, human and la-bor rights, and environmental impacts. The TPIDD is applicable globally to any legal entity within Lundbeck that intends to either use the ser-vices of, or interact with, third-party intermediaries. The Chief Ethics and Compliance Officer is accounta-ble for the implementation of the TPIDD, which is available internally on Lundbeckâs intranet and is im-plemented to ensure compliance with the Code of Conduct and local applicable laws, codes, and regu-lations. Climate criteria are considered when selecting sup-pliers that fall within the boundary of our scope 3 SBTi Target and our Transition Plan. New and strate-gic suppliers are requested to sign a climate adden-dum, which commits them to the use of renewable energy or to have science-based targets, as well as to establish a timeline for reporting on these. Actions and targets Responsible sourcing is managed through regular operations in Procurement, Global Compliance, and HSE processes. As such, no key actions have been planned in 2024 and no targets have been set. The processes governing responsible sourcing are tracked by their respective departments. Effective-ness is measured as the number of climate adden-dums signed and third-party intermediary due dili-gence screenings undertaken. Animal welfare Our approach (policies) Lundbeck is obliged by regulatory authorities to con-duct testing on animals to ensure the efficacy and safety of its products. Animals are only used for re-search purposes when alternative models cannot provide the data necessary to evaluate treatments for brain diseases and when the benefit to patients outweigh the discomfort for the animals. The use of animals comes with a responsibility to provide ap-propriate care and housing, comply with relevant legislation, and commit to the 3Rs (Refine, Reduce, Replace) principle of animal research. Lundbeck is committed to ensuring the ethical treat-ment of animals used in laboratory settings, in com-pliance with the guidelines of the EU Directive 2010/63/EU on the protection of animals used for scientific purposes and similar directives worldwide, as well as national regulations and guidelines. Fur-thermore, Lundbeck has signed the Marseille Decla-ration, which states the expectations related to ani-mal welfare practices used at Lundbeckâs own sites worldwide and by all external partners when using live animals to conduct studies on Lundbeckâs behalf.Facilities working with live animals are mandated by EU regulation to have an Animal Welfare Body (AWB) to oversee the research. At Lundbeck, the AWB is the Lundbeck Animal Care and Use Committee (LACUC), chaired by Lundbeckâs SVP of Non-clinical Safety Re-search. LACUC ensures that animal welfare consider-ations are given the highest priority in the context of animal keeping, breeding, and use. Animal welfare considerations are also supported by the inspection of the Danish sites by the Danish Animal Experi-ments Inspectorate (DAEI), as well as rules requiring that any external institution using animals on behalf of Lundbeck must have an AWB to ensure compli-ance with legislation and alignment with Lundbeckâs Animal Ethics Policy and supporting obligations. The Animal Ethics Policy (link) is publicly available on www.lundbeck.com, and the implemented proce-dures and practical guidance for employees working with animals are available internally on Lundbeckâs intranet. Actions and targets We closely monitor and address any needs for im-provement regarding animal welfare within our facil-ities as a regular component of our operations. As such, no specific targets have been set. However, Lundbeck has a dedicated veterinary team that is ap-proved by the Executive Management to operate in-dependently from Lundbeckâs scientific research and animal care. The team provides oversight of animal welfare, serves as an advisory function, and ensures compliance with relevant regulations. In 2024, construction began on a new research facil-ity in Valby (Denmark) to support internal research projects, with completion expected in 2027. This state-of-the-art facility will eventually house the ani-mals used in Lundbeckâs scientific research, with ani-mal welfare as a key element of its design. The facil-ity will be equipped with advanced technology and scientific setups that will help minimize stress, pro-tect against disease, and provide species-specific care. Additionally, it will include provisions for train-ing and socialization to ensure the physical and psy-chological wellbeing of the animals. The new research facility will require an investment of approximately DKK 1 billion over four years, with project completion expected in 2027. Considerations regarding animal welfare are contin-uously developing, as improvements can always be made in response to new advancements, technol-ogy, and standards of care. For the past 15 years, Lundbeck has been committed to high animal wel-fare standards, and we strive to ensure that all our collaborators adhere to their principles. G1-4 â Incidents of Corruption or Bribery Incidents of Corruption and Bribery Unit 2024 Convictions for violation of anti-corruption and anti-bribery law No. - Amount of fines for violation of anti-corruption and anti-bribery law DKKm - 1 Compliance Hotline Unit 2024 2023Compliance Hotline reports No. 85 105 In 2024, a total of 85 cases were reported to the Compliance Hotline. The number of cases includes all re-ported concerns, regardless of whether investigations were substantiated. All cases are thoroughly investi-gated in accordance with our global procedures, which are designed to protect individuals who raise concerns or contribute to investigations. Furthermore, no convictions for violations of anti-corruption or anti-bribery laws were reported in 2024 1 Internal and external audits Unit 2024 2023Patient & Product Safety audits No. 53 55 Health, Safety and Environment audits No. 10 8 Business Ethics and Internal Control audits No. 72 101 Total of internal audits No. 135 164 Patient & Product Safety audits No. 142 133 Health, Safety and Environment audits No. 6 12 Third Parties and Supplier audits No. 59 66 Total of audits of external partners No. 207 211 Total of all audits No. 342 375 The number of audits includes both internal and external audits conducted across various departments, un-derscoring Lundbeckâs commitment to compliance with company guidelines, pharmaceutical codes, and legal regulations. In 2024, the total number of audits across all categories slightly decreased. 1 The comparative figures for 2023 are not subject to limited assurance. 1 Code of Conduct Unit 2024 2023Completion rate of annual Code of Conduct e-learning % 100 99.9 In 2024, Lundbeck achieved a 100% completion rate for the Code of Conduct e-learning program, an improve-ment from the 99.9% completion rate in 2023, demonstrating our performance towards ensuring a high level of understanding of the Code of Conduct. 1 Business Ethics Due Diligence Unit 2024 2023Third-Party Intermediary Due Diligence screenings No. 240 227 The number of completed Due Diligence screenings in 2024 reflects the continued awareness of anti-bribery and anti-corruption requirements and the introduction of the updated the Third-Party Intermediary Due Dili-gence procedure. Accounting policies Incidents of corruption and bribery The number of confirmed convictions for corruption and bribery during the reporting year. The associated monetary fines are reported in DKKm. Compliance Hotline The number of cases reported through the Compliance Hotline and other channels includes all cases reported where concerns about potential misconduct were investigated, regardless of whether investigations could be substantiated. Internal and external audits The number of audits comprises those completed internally and by external partners, which are divided into the following categories: Patient & Product Safety audits, Health, Safety and Environment audits, Business Ethics and Internal Control audits, and Third Parties and Supplier audits. Patient & Product Safety audits The number of audits comprises those completed and reported by internal functions at Lundbeck within the following areas: Animal Welfare, Chemistry, Manufacturing and Controls Assurance (CMC QA) Quality, Good Distribution Practice (GDP), Good Manufacturing Practice (GMP), Corporate Product Quality (CPQ), Research and Development Quality (R&D Quality), GVP and Good Clinical Practice (GCP), Medical Regulatory Clinical Quality Assurance (MRC QA), Pharmacovigilance Audits, and Good Laboratory Practice (GLP). Health, Safety and Environment audits The number of audits comprises those completed and reported by internal functions at Lundbeck. This pro-cess verifies that Lundbeckâs internal operations, as well as those of its suppliers and third parties, meet the required standards for health and safety performance, human and labor rights, and environmental perfor-mance. Business Ethics and Internal Control audits The number of audits comprises those completed and reported by internal functions at Lundbeck for compli-ance and financial audit functions. These functions review, audit, and monitor the activities of employees, as well as internal control processes. Third Parties and Supplier audits The number of audits comprises those completed and reported by internal functions at Lundbeck. Third-par-ties and suppliers are monitored and audited (based on contractual requirements and requirements stipu-lated in Lundbeckâs third-party obligations), including information security reviews of external personal data processors. Code of Conduct The completion rate of the annual Code of Conduct e-Learning represents the percentage of permanent and temporary employees who completed the Code of Conduct training that was assigned to them between 30 September and 1 October. This excludes contingent workers. The completion rate is measured within the timeframe of 30 September to 31 December. It is calculated by dividing the number of employees who com-pleted the training by the total number of employees assigned to the training. Business Ethics Due diligence The number of Third-Party Intermediary Due Diligence screenings contains all screenings completed, includ-ing those found to be out of scope, or withdrawn by the requester during the reporting period. The screen-ings are an examination of publicly available sources to identify potential risks related to potential or existing third parties. List of appendices In this section 139 List of datapoints that derive from other EU legislation 143 Statement on due diligence 1144 EU Taxonomy - nuclear and fossil gas related activities1*1. List of datapoints that derive from other EU legislationDisclosure Data point SFDR reference Pillar 3 reference Benchmark regulation reference EU climate law reference Page Requirement Indicator number 13 of Table #1 of Commission Delegated Regulation (EU) 2020/1816 ( 27 ) , An-ESRS 2 GOV-1 21 (d): Board's gender diversity 42-44 Annex 1 nex II 21 (e): Percentage of board members who are ESRS 2 GOV-1 Delegated Regulation (EU) 2020/1816, Annex II 42 independent Indicator number 10 Table #3 of An-ESRS 2 GOV-4 30: Statement on due diligence 72 nex 1 Article 449a; Regulation (EU) No 575/2013; Commission Im-40 (d): Involvement in activities related to fossil Indicators number 4 Table #1 of An-plementing Regulation (EU) 2022/2453 ( 28 ) Table 1: Quali-ESRS 2 SBM-1 Delegated Regulation (EU) 2020/1816, Annex II N/A fuel activities paragraph nex 1 tative information on Environmental risk and Table 2: Qual-itative information on Social risk 40 (d) ii: Involvement in activities related to Indicator number 9 Table #2 of Annex ESRS 2 SBM-1 Delegated Regulation (EU) 2020/1816, Annex II N/A chemical production 1 40 (d) iii: Involvement in activities related to Indicator number 14 Table #1 of An-Delegated Regulation (EU) 2020/1818 ( 29 ) , Article 12(1) Dele-ESRS 2 SBM-1 N/A controversial weapons nex 1 gated Regulation (EU) 2020/1816, Annex II 40 (d) iv: Involvement in activities related to cul-Delegated Regulation (EU) 2020/1818, Article 12(1) Delegated ESRS 2 SBM-1 N/A tivation and production of tobacco Regulation (EU) 2020/1816, Annex II 14: Transition plan to reach climate neutrality ESRS E1-1 Regulation (EU) 2021/1119, Article 2(1) 75 by 2050 Article 449a; Regulation (EU) No 575/2013; Commission Implementing 16 (g): Undertakings excluded from Paris-Delegated Regulation (EU) 2020/1818, Article12.1 (d) to (g), ESRS E1-1 Regulation (EU) 2022/2453 Template 1: Banking book-Cli-75 aligned Benchmarks and Article 12.2 mate Change transition risk: Credit quality of exposures by sector, emissions and residual maturity Article 449a Indicator number 4 Table #2 of Annex Regulation (EU) No 575/2013; Commission Implementing ESRS E1-4 34: GHG emission reduction targets Delegated Regulation (EU) 2020/1818, Article 6 82 1 Regulation (EU) 2022/2453 Template 3: Banking book â Cli-mate change transition risk: alignment metrics 38: Energy consumption from fossil sources Indicator number 5 Table #1 and Indi-ESRS E1-5 disaggregated by sources (only high climate 81 cator n. 5 Table #2 of Annex 1 impact sectors) Indicator number 5 Table #1 of Annex ESRS E1-5 37: Energy consumption and mix 81 1 40 to 43: Energy intensity associated with activi-Indicator number 6 Table #1 of Annex ESRS E1-5 81-83 ties in high climate impact sectors 1 44: Gross Scope 1, 2, 3 and Total GHG emis-Indicators number 1 and 2 Table #1 Article 449a; Regulation (EU) No 575/2013; Commission Im-ESRS E1-6 Delegated Regulation (EU) 2020/1818, Article 5(1), 6 and 8(1) 82-84 sions of Annex 1 plementing Regulation (EU) 2022/2453 Template 1: Banking 1. ESRS 2, IRO-2 paragraph 56. *Subject to limited assurance. Disclosure Data point SFDR reference Pillar 3 reference Benchmark regulation reference EU climate law reference Page Requirement book â Climate change transition risk: Credit quality of ex-posures by sector, emissions and residual maturity Article 449a; Regulation (EU) No 575/2013; Commission Im-Indicators number 3 Table #1 of An-ESRS E1-6 53 to 55: Gross GHG emissions intensity plementing Regulation (EU) 2022/2453 Template 3: Banking Delegated Regulation (EU) 2020/1818, Article 8(1) 82-84 nex 1 book â Climate change transition risk: alignment metrics ESRS E1-7 56: GHG removals and carbon credits Regulation (EU) 2021/1119, Article 2(1) N/A 66: Exposure of the benchmark portfolio to cli-Delegated Regulation (EU) 2020/1818, Annex II Delegated ESRS E1-9 N/A mate-related physical risks Regulation (EU) 2020/1816, Annex II 66 (a): Disaggregation of monetary amounts by Article 449a Regulation (EU) No 575/2013; Commission Im-ESRS E1-9 acute and chronic physical risk plementing Regulation (EU) 2022/2453 paragraphs 46 and N/A 66 (c): Location of significant assets at material 47; Template 5: Banking book - Climate change physical physical risk risk: Exposures subject to physical risk. Article 449a Regulation (EU) No 575/2013; Commission Im-plementing Regulation (EU) 2022/2453 paragraph 34;Tem-67 (c): Breakdown of the carrying value of its ESRS E1-9 plate 2:Banking book -Climate change transition risk: Loans N/A real estate assets by energy-efficiency classes collateralized by immovable property - Energy efficiency of the collateral 69: Degree of exposure of the portfolio to cli-ESRS E1-9 Delegated Regulation (EU) 2020/1818, Annex II N/A mate- related opportunities Indicator number 8 Table #1 of Annex 28: Amount of each pollutant listed in Annex II 1 of the E-PRTR Regulation (European Pollutant Indicator number 2 Table #2 of Annex ESRS E2-4 89 Release and Transfer Register) emitted to air, 1 Indicator number 1 Table #2 of An-water and soil nex 1 Indicator number 3 Table #2 of Annex 1 Indicator number 7 Table #2 of Annex ESRS E3-1 9: Water and marine resources N/A 1 Indicator number 8 Table 2 of Annex ESRS E3-1 13: Dedicated policy N/A 1 Indicator number 12 Table #2 of An-ESRS E3-1 14: Sustainable oceans and seas N/A nex 1 Indicator number 6.2 Table #2 of An-ESRS E3-4 28 (c): Total water recycled and reused N/A nex 1 29: Total water consumption in m 3 per net rev-Indicator number 6.1 Table #2 of An-ESRS E3-4 N/A enue on own operations nex 1 ESRS 2- SBM 3 - Indicator number 7 Table #1 of Annex 16 (a) i N/A E4 1 ESRS 2- SBM 3 - Indicator number 10 Table #2 of An-16 (b) N/A E4 nex 1 Disclosure Data point SFDR reference Pillar 3 reference Benchmark regulation reference EU climate law reference Page Requirement ESRS 2- SBM 3 - Indicator number 14 Table #2 of An-16 (c) N/A E4 nex 1 24 (b): Sustainable land / agriculture practices Indicator number 11 Table #2 of An-ESRS E4-2 N/A or policies nex 1 24 (c): Sustainable oceans / seas practices or Indicator number 12 Table #2 of An-ESRS E4-2 N/A policies nex 1 Indicator number 15 Table #2 of An-ESRS E4-2 24 (d): Policies to address deforestation N/A nex 1 Indicator number 13 Table #2 of An-ESRS E5-5 37 (d): Non-recycled waste 95 nex 1 Indicator number 9 Table #1 of Annex ESRS E5-5 39: Hazardous waste and radioactive waste 95 1 ESRS 2- SBM3 - Indicator number 13 Table #3 of An-14 (f): Risk of incidents of forced labor N/A S1 nex I ESRS 2- SBM3 - Indicator number 12 Table #3 of An-14 (g): Risk of incidents of child labor N/A S1 nex I Indicator number 9 Table #3 and Indi-ESRS S1-1 20: Human Rights Policy commitments N/A cator number 11 Table #1 of Annex I 21: Due diligence policies on issues addressed ESRS S1-1 by the fundamental International Labor Organi-Delegated Regulation (EU) 2020/1816, Annex II 103; 106; 108 zation Conventions 1 to 8 22: processes and measures for preventing Indicator number 11 Table #3 of An-ESRS S1-1 N/A trafficking in human beings nex I+ 23: workplace accident prevention policy or Indicator number 1 Table #3 of Annex ESRS S1-1 103 management system I 32 (c): grievance/complaints handling mecha-Indicator number 5 Table #3 of Annex ESRS S1-3 110 nisms I 88 (b) and (c): Number of fatalities and number Indicator number 2 Table #3 of Annex ESRS S1-14 Delegated Regulation (EU) 2020/1816, Annex II 104 and rate of work-related accidents I 88 (e): Number of days lost to injuries, acci-Indicator number 3 Table #3 of Annex ESRS S1-14 104 dents, fatalities or illness I Indicator number 12 Table #1 of An-ESRS S1-16 97 (a): Unadjusted gender pay gap Delegated Regulation (EU) 2020/1816, Annex II 112 nex I Indicator number 8 Table #3 of Annex ESRS S1-16 97 (b): Excessive CEO pay ratio 112 I Indicator number 7 Table #3 of Annex ESRS S1-17 103 (a): Incidents of discrimination paragraph 113 I 104 (a): Non-respect of UNGPs on Business and Indicator number 10 Table #1 and In-Delegated Regulation (EU) 2020/1816, Annex II Delegated ESRS S1-17 N/A Human Rights and OECD Guidelines dicator n. 14 Table #3 of Annex I Regulation (EU) 2020/1818 Art 12 (1) Disclosure Data point SFDR reference Pillar 3 reference Benchmark regulation reference EU climate law reference Page Requirement ESRS 2- SBM3 â 11 (b): Significant risk of child labor or forced la-Indicators number 12 and n. 13 Table N/A S2 bor in the value chain #3 of Annex I Indicator number 9 Table #3 and Indi-ESRS S2-1 17: Human Rights Policy commitments 116-117 cator n. 11 Table #1 of Annex 1 Indicator number 11 and n. 4 Table ESRS S2-1 18: Policies related to value chain workers 116-117 #3 of Annex 1 19: Non-respect of UNGPs on Business and Hu-Indicator number 10 Table #1 of An-Delegated Regulation (EU) 2020/1816, Annex II Delegated ESRS S2-1 N/A man Rights principles and OECD guidelines nex 1 Regulation (EU) 2020/1818, Art 12 (1) 19: Due diligence policies on issues addressed ESRS S2-1 by the fundamental International Labor Organi-Delegated Regulation (EU) 2020/1816, Annex II 116-117 zation Conventions 1 to 8 36: Human rights issues and incidents con-Indicator number 14 Table #3 of An-ESRS S2-4 nected to its upstream and downstream value N/A nex 1 chain Indicator number 9 Table #3 of Annex ESRS S3-1 16: Human Rights Policy commitments 1 and Indicator number 11 Table #1 N/A of Annex 1 17: non-respect of UNGPs on Business and Hu-Indicator number 10 Table #1 Annex Delegated Regulation (EU) 2020/1816, Annex II Delegated ESRS S3-1 N/A man Rights, ILO principles or OECD guidelines 1 Regulation (EU) 2020/1818, Art 12 (1) Indicator number 14 Table #3 of An-ESRS S3-4 36: Human rights issues and incidents N/A nex 1 Indicator number 9 Table #3 and Indi-119; 121; 122; ESRS S4-1 16: Policies related to consumers and end-users cator number 11 Table #1 of Annex 1 125; 127. 17: Non-respect of UNGPs on Business and Hu-Indicator number 10 Table #1 of An-Delegated Regulation (EU) 2020/1816, Annex II Delegated ESRS S4-1 N/A man Rights and OECD guidelines nex 1 Regulation (EU) 2020/1818, Art 12 (1) Indicator number 14 Table #3 of An-ESRS S4-4 35: Human rights issues and incidents N/A nex 1 10 (b): United Nations Convention against Cor-Indicator number 15 Table #3 of An-ESRS G1-1 N/A ruption nex 1 Indicator number 6 Table #3 of Annex ESRS G1-1 10 (d): Protection of whistle- blowers N/A 1 24 (a): Fines for violation of anti-corruption and Indicator number 17 Table #3 of An-ESRS G1-4 Delegated Regulation (EU) 2020/1816, Annex II) 136 anti-bribery laws nex 1 24 (b): Standards of anti- corruption and anti- Indicator number 16 Table #3 of An-ESRS G1-4 132-134 bribery nex 1 12. Statement on due diligenceUN Guiding Principles on Business and Human Rights and the OECD Guidelines for Multinational Enterprises Core elements of Due Diligence Pages in the Sustainability Report a. Embedding due diligence in governance, strategy and business model* 44; 62; 65-67; 72 b. Engaging with affected stakeholders in all key steps of the due diligence* 68-70; 72; 75; 79-80; 86; 92; 103; 106; 108; 116; 119; 121-122; 125; 127; 132-135 c. Identifying and assessing adverse impacts* 65-70; 79-80 d. Taking actions to address those adverse impacts* 76; 86-87; 92-93; 103; 106; 108-109; 119-120; 123; 125 e. Tracking the effectiveness of these efforts and communicating* 93; 104; 109; 123; 132-133 1. ESRS 2, GOV-4. *Subject to limited assurance. 13. EU Taxonomy - nuclear and fossil gas related activitiesRow Nuclear energy related activities Yes/No* The undertaking carries out, funds or has exposures to research, development, demonstration and deployment of innovative electricity generation facilities that produce energy from nuclear processes with minimal 1 No waste from the fuel cycle. The undertaking carries out, funds or has exposures to construction and safe operation of new nuclear installations to produce electricity or process heat, including for the purposes of district heating or industrial 2 No processes such as hydrogen production, as well as their safety upgrades, using best available technologies. The undertaking carries out, funds or has exposures to safe operation of existing nuclear installations that produce electricity or process heat, including for the purposes of district heating or industrial processes such 3 No as hydrogen production from nuclear energy, as well as their safety upgrades. Fossil gas related activities No 4 The undertaking carries out, funds or has exposures to construction or operation of electricity generation facilities that produce electricity using fossil gaseous fuels. No 5 The undertaking carries out, funds or has exposures to construction, refurbishment, and operation of combined heat/cool and power generation facilities using fossil gaseous fuels. No 6 The undertaking carries out, funds or has exposures to construction, refurbishment and operation of heat generation facilities that produce heat/cool using fossil gaseous fuels. No 1 Table on nuclear and fossil gas related activities pursuant to Regulation (EU) 2022/1214 (Annex XII), amending Regulation (EU) 2021/2139. *Subject to limited assurance.</mrv:SustainabilityReport>
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<mrv:DescriptionofTheTaxonomyRegulation contextRef="ctx-1" id="s8__7__12" xml:lang="en">Reporting according to the EU Taxonomy The EU Taxonomy regulation (EU 2020/825) is a sci-ence-based classification system designed to estab-lish a common language to support companies and investors to identify sustainable economic activities. By doing so, the EU Taxonomy contributes to tack-ling greenwashing and promoting the transition to-wards a more sustainable economy. In accordance with Article 8 of the EU Taxonomy, Lundbeck is required to report on the sustainability profile of its Revenue, Capital Expenditure (CAPEX), and Operating Expenditure (OPEX). This process en-tails the screening of Lundbeckâs business activities against the potentially sustainable activities listed in the EU Taxonomyâs delegated legislation to identify our eligible share of Revenue, CAPEX, and OPEX (i.e., eligibility assessment), and the evaluation of compli-ance with technical screening criteria (Substantial contribution & Do no significant harm) and the Mini-mum Safeguards (i.e., alignment assessment). The results from the eligibility and alignment assess-ments are summarized in eligibility and alignment KPIs for Revenue, OPEX, and CAPEX, presented on pages 98, 99, and 100, respectively. Eligibility assessment: Lundbeck conducts its eligibility screening against the activities that contribute to Climate Change Miti-gation (CCM), Climate Change Adaptation (CCA), Sus-tainable Use and Protection of Water and Marine Re-sources (WTR), Transition to a Circular Economy (CE), Pollution Prevention and Control (PPC), and Protec-tion and Restoration of Biodiversity and Ecosystems (BIO). In 2024, the following were deemed eligible: ⢠Manufacture of medicinal products (PPC 1.2) ⢠Transport by motorbikes, passenger cars, and light commercial vehiclesâ (CCM 6.5) ⢠Construction of new buildings (CCM 7.1) ⢠Renovation of existing buildings (CCM 7.2) Revenue As a global pharmaceutical company, Lundbeck rec-ognizes revenue from the sale of pharmaceuticals (Note 3, page 156). Lundbeck determines revenue el-igibility based on an end-product approach by link-ing each productâs revenue stream to our core activ-ity âManufacture of medicinal productsâ (PPC). In 2024, this approach resulted in a 100% revenue eligi-bility, which is in line with 2023 results. CAPEX Lundbeck assesses the CAPEX eligibility by reviewing its acquisitions in the financial year (Notes 7 and 8, pages 163-167) and by linking them to eligible eco-nomic activities. In 2024, Lundbeck identified eligible projects under âRenovation of existing buildingsâ, âTransport by motorbikes, passenger cars, and light commercial vehiclesâ, âConstruction of new buildingsâ and âManufacture of medicinal productsâ. The first two activities are related to our renovation projects and car fleet, respectively. The latter two are associ-ated with the construction of our In-Vivo facility (see page 135), as well as tangible assets from production and intangible IP rights from the acquisition of Long-1board. Due to these significant additions, our 2024 eligibility is 99%, compared to 27% in 2023. OPEX OPEX eligibility entails a review of the general ledger entries in our Statement of Profit or Loss (see page 147). By this approach, Lundbeck identified OPEX re-lated to âRenovation of existing buildingsâ, âTransport by motorbikes, passenger cars and light commercial vehiclesâ, âConstruction of new buildingsâ and âManu-facture of medicinal productsâ. In 2024, Lundbeck up-dated the methodology for its OPEX denominator (see footnote 1 at page 99) resulting in 6% eligibility, compared to 7% in 2023 (restated). Alignment assessment: Given Lundbeckâs business model, the most material sustainability impact can be achieved by making a substantial contribution to pollution prevention and control (PPC 1.2). Since most of our current product ingredients portfolio is not naturally occurring, bio-degradable, or mineralized (criterion 1.1) and Lundbeck cannot currently fulfill the product substi-tution criteria (criterion 1.2), it is impossible to claim alignment for the âManufacture of medicinal prod-uctsâ in 2024. As part of our development of new products, Lundbeck continues applying green chem-istry screening processes and conducting environ-mental impact assessments (pages 76 & 93). Work-ing towards the alignment of other eligible activities irrelevant to our business model is not currently a strategic priority and is subject to data limitations. Lundbeck continues the assessment of its Minimum Safeguards to comply with CSDDD by 2027. A num-ber of operational-level due diligence processes are in place for ensuring responsible business conduct across the value chain (see page 72). 1 In 2024, Lundbeck has acquired Longboard Pharmaceuticals as further specified in Note 2 on page 154. Revenue Substantial contribution criteria Does Not Significantly Harm criteria (DNSH) Proportion of taxonomy aligned (A.1) Proportion Climate Climate Climate or eligible Category Category Revenue of Revenue change Climate Circular change change Circular Minimum (A.2) Revenue, enabling transitional Economic activities Codes (DKKm) 2024 (%) mitigation change ad-Water Pollution economy Biodiversity mitigation adaptation Water Pollution economy Biodiversity safeguards 2023 (%) activity activity (1) (2) (3) (4) (5) aptation (6) (7) (8) (9) (10) (11) (12) (13) (14) (15) (16) (17) (18) (19) (20) A. TAXONOMY-ELIGIBLE ACTIVITIES A.1. Environmentally sustainable activities (taxonomy-aligned) None 0 0% - - - - - - - - - - - - - - - - Revenue of environmentally sustainable activi-0 0% - - - - - - - - - - - - - - - - ties (taxonomy-aligned) (A.1) Of which enabling 0 0% - - - - - - - - - - - - - - - - Of which transitional 0 0% - - - - - - - - - - - - - - - - A.2 Taxonomy-eligible but not environmentally sustainable activities (not taxonomy-aligned activities) Manufacture of medicinal products PPC 1.2 22.004 100% N/EL N/EL N/EL EL N/EL N/EL - - - - - - - 100% - - Revenue of taxonomy-eligible but not environ-mentally sustainable activities (not taxonomy-22,004 100% - - - - - - - - - - - - 100% - - aligned activities) (A.2) Revenue of taxonomy-eligible activities 22,004 100% - - - - - - - - - - - - 100% - - (A.1 + A.2) B. TAXONOMY-NON-ELIGIBLE ACTIVITIES Revenue of taxonomy-non-eligible activities (B) 0 0% TOTAL (A + B) 22,004 100% PPC = Pollution prevention and control EL = Eligible N/EL = Not eligible Revenue accounting policy The share of revenue generated from taxonomy-eligible economic activities (numerator) is divided by total revenue (denominator), as reported