LUNDBECKFONDEN - SUSTIANABILITY REPORT 2021
PROMOTING SUSTAINABLE PRACTICES AND GOOD GOVERNANCE As a foundation, the footprint of the Lundbeck Foundation is
In its very different roles as owner, investor, philanthropist and public voice, the
primarily defined by the companies it owns, the investments it
Lundbeck Foundation has the opportunity to use its influence to promote
makes, and the recipients of its grants. The basis for promoting
sustainable practices across environmental-, social- and governance-related
sustainable development is the Foundation’s governance model.
dimensions. A HISTORY OF GOOD GOVERNANCE The Foundation has, over the past decade, developed a strong
THE LUNDBECK FOUNDATION’S GOVERNANCE MODEL AND KEY PRINCIPLES
focus on governance. This has led to four principles, which constitute the core of the Foundation’s approach to governance: compliance, independence, transparency, and checks and balances.
Compliance
• General compliance with the Danish Recommendations on Foundation Governance • Where relevant, additional compliance with the Danish Recommendations on Corporate Governance, applicable for listed companies
Moreover, the Foundation has taken a shared responsibility • All members of the Board of the Foundation are external and independent. Former CEOs and
for driving environmental considerations and socially
executives of the Foundation and its subsidiaries cannot become members of the Board of the
sustainable practices, and this will be further expanded in the
Foundation
years to come.
• The three chairmen of the Foundation’s subsidiaries are external appointments and independent of the
Independence
Foundation • The Chairman of the Board of the Foundation cannot become non-executive board member of the subsidiaries • The CEO of the Foundation and one non-executive Board member of the Foundation have seats on the board of directors of each of the three subsidiaries. The CEO of the Foundation holds the Deputy chairmanship on each board
• The Lundbeck Foundation publishes its annual accounts in full alignment with the principles for listed
Transparency
companies (IFRS standards) • Key policies and governing documents are made publicly accessible on the Foundation’s website • Major decisions on philanthropic grants are communicated proactively via the website, social media and press
Checks and balances
• The Foundation’s organisation and key processes are designed to prevent the concentration of decisionmaking power • All grant-making-decisions are subject to external reviews by international experts to verify quality levels
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