Looking forward: Greater ambitions within sustainability

Making a positive impact on society is at the heart of what the Lundbeck Foundation always has done – and always will do. However, the Foundation acknowledges that it is on a journey to fully understand, explore and integrate the constantly evolving sustainability knowledge and concepts.

Looking ahead, the Foundation’s ambition is to further enhance its transparency and communication with regard to its sustainability approach, also defining actionable targets underpinned by a tangible action plan.

DEVELIVERING ON STRATEGY IS DELIVERING SUSTAINABILITY IMPACT The 2030 strategy has defined the Foundation’s desired value creation towards 2030. With the close link between its strategy and sustainability commitments, the execution of the strategy will also contribute to a more sustainable society. For example, by:

• Increasing annual fixed grants to scientific research to

DKK 1,000m will drive new knowledge, insights and discoveries related to health and quality of life • Expanding the portfolio of healthcare companies from three, to between five and eight will drive sustainable economic growth and strengthen Denmark as a life science nation, with a critical mass of life science talents, knowledge, and companies • Developing talents and innovative projects will help close the current gap between academic research, knowledge and new treatments TAKING A GREATER RESPONSIBILITY FOR PROMOTING SUSTAINABLE PRACTICES A commercial foundation has a broad and varied range of commercial and philanthropic activities. Its business and sustainability model are therefore different from that of manufacturing companies, and there is no widely accepted framework or approach, which reviews and measures the sustainability impact of commercial foundations, combining both commercial and philanthropic activities.

In 2021, the Foundation carried out a project with the objective of defining an operating model for its sustainability approach, to be used in defining targets for sustainability activities covering all the Foundation’s activities. While the Foundation has always been committed to all relevant ‘soft law’ principles, such as the UN Global Compact, it has also defined new commitments to taking a more proactive and leading approach in key areas. The new model was defined in 2021 and, in 2022, these ambitions will form the basis for the development of a new ‘sustainability playbook’, outlining the actionable processes and tools that the Lundbeck Foundation will use.

This work will include new initiatives with the objective of promoting sustainable practices across its various roles as investor, owner and philanthropist, and with regard to the Foundation’s own operational practices. It is still too early to provide specific details on these initiatives, however, some initial examples can be provided. Within its philanthropic activities, the Foundation remains highly focused on the need to build international collaborations and partnerships. This will not change, but the Foundation will review its travel policies as they relate to research grants and activities, and will also further develop its approach to talent development and competence building, and on growing diversity across all grant activities.

With its ownership of Lundbeck, ALK and Falck, the Foundation is proud to note that all subsidiaries are taking significant steps towards becoming even more sustainable. A cornerstone of the Foundation’s 2030 strategy is the ownership of leading healthcare companies. In 2022, the Foundation will therefore define a ‘sustainability codex’, to fully articulate its understanding of sustainability as it applies to its concept of an engaged ownership model.

Finally, it is vital that the Lundbeck Foundation leads by example. In 2022, the Foundation will again review its internal practices relating to facility management, transportation and energy consumption, in order to reduce the environmental footprint of its own operations while continuing to be a diverse, healthy and meaningful place to work for all its employees.