Bristol-Myers Squibb UN Global Compact Communication on Progress 2018

Bristol-Myers Squibb is a participant of the United Nations Global Compact, which is the world’s largest corporate citizenship and sustainability initiative.

To Our Stakeholders

Dear Mr. Secretary-General,

It is with great pride that I submit Bristol-Myers Squibb’s eighth annual Communication on Progress report.

We value the opportunity to tell our global compact story – to reaffirm our commitment to the Ten Principles of the United Nations Global Compact (UNGC) and to highlight the many ways we bring these principles to life through our people and our practices.  The UNGC is closely aligned with our own longstanding company “Commitment” – a statement of company principles that places a premium on integrity, ethics, transparency, diversity and economic, social and environmental sustainability.  Meeting these high standards is therefore part of our everyday business.

We are grateful for this opportunity and for the continued leadership and partnership of our UNGC colleagues.

Sincerely,

Giovanni Caforio

Chairman of the Board & Chief Executive Officer 

Introduction

Bristol-Myers Squibb joined the U.N. Global Compact in December 2010 and this year we further integrated its principles encompassing Human Rights, Labor, Environment and Anti-Corruption across our company. Our commitment to the U.N. Global Compact is available to all employees and to the public on our company website. We continue to focus on opportunities for improvement.

Bristol-Myers Squibb was ranked No. 27 overall on Corporate Responsibility magazine’s annual list of the 100 Best Corporate Citizens, a leading benchmark for socially responsible investors and other stakeholders. We are one of only two companies in the pharmaceutical sector to be included in the rankings for 10 consecutive years and the only company to be ranked among the top 30 consistently for the last decade. 

In the 2018 issue of the Bristol-Myers Squibb Global Citizenship Report, we incorporated our commitment to the UN Sustainable Development Goals (SDGs) and provide updates on our Sustainability 2020 Goals, which are on track to meet all targets.  This report also provides greater details on the work we do in support of our Patients, our People, our Planet and our Principles.

Bristol-Myers Squibb continued to collaborate with Business for Social Responsibility to support the Guiding Principles on Access to Healthcare, which include a principle on respecting human rights. Through a Quick-Start program led by the Clinton Health Access Initiative, Duke University and AmeriCares, 10,000 patients co-infected with hepatitis C and HIV in six developing countries in Africa and Southeast Asia been treated with Daklinza (daclatasvir) donated by Bristol-Myers Squibb in 2018. Beyond the donation to kick-start the treatment program, long-term sustainability was enabled by a royalty-free licensing and technology transfer agreement for daclatasvir with the Medicines Patent Pool. Since entering into the agreement, more than 440,000 patients have been treated with licensed daclatasvir in a territory of 112 low- and middle-income countries.

Through the Bristol-Myers Squibb Foundation, we promote health equity and seek to improve the health outcomes of populations disproportionately affected by serious diseases by strengthening healthcare worker capacity, integrating medical care and community-based supportive services, and mobilizing communities in the fight against disease. Information on the specific programs supported under each of the initiatives described below can be found on the Bristol-Myers Squibb Foundation website.

Through the Global Cancer Disparities Initiative, we support community-based programs that promote cancer awareness, screening, care, and support among high-risk populations in the United States, as well as Central and Eastern Europe and sub-Saharan Africa. We are working with partners across the globe in areas where social stigmas, inadequate education, and a lack of available services all contribute to increased mortality rates from lung, skin, breast, and cervical cancers.

The Specialty Care for Vulnerable Populations initiative is addressing inequities in access to and utilization of specialty care services by medically underserved and vulnerable populations in the US. The goal of this national initiative is to catalyze sustainable improvement and expansion of specialty care service delivery in safety net settings to achieve more optimal and equitable outcomes for the people living with or at high risk for cancer, autoimmune diseases (rheumatoid arthritis, lupus) and cardiovascular diseases (stroke, atrial fibrillation, and venous thromboembolism).

The Foundation’s Mental Health & Well-Being initiative aims to help veterans, military service members, their families, and the families of the fallen. We focus on community-based solutions to help with mental health and community reintegration.

The Foundation is also a founding member of the Philanthropy-Joining Forces Impact Pledge in collaboration with the Office of the First Lady. Together, we work with corporate professionals to create one-on-one mentoring relationships for veterans.

The Bristol-Myers Squibb Company in partnership with the Bristol-Myers Squibb Foundation is committed to sharing our skills to strengthen our communities.  Our employees have participated in collaborations around the world, including the Make A Wish Foundation, Picture Book Carnival in Japan, Patenprojekt Munchen in Germany, Men in Sheds in the UK, Catchafire in the US, Ride for a Cure in the US and Canada and our own Global Initiative for Volunteerism and Engagement. Through STEM grants and volunteer programs across the globe, we’ve introduced students to genetics, robotics, engineering, alternative energy and environmental science.

Our strong emphasis on diversity and inclusion for our workforce has resulted in participation by over 12,500 employees in 44 countries across our eight People and Business Resource Groups representing women, African-American, Latino/Hispanic, Asian-American, Millennial, differently-abled and lesbian/gay/bisexual/transgender employees as well as those who are U.S. Veterans.  This represents a >50% increase in participation from our 2017 report.  In 2018, Bristol-Myers Squibb agreed to join 126 companies and firms worldwide in support of the U. N. Office of Human Rights Global LGBTI Standards for Business.  In addition, we joined the One Young World Lead 2030 Initiative, electing to sponsor the challenge for U.N. SDG 10, Reduce Inequalities.

Under a program called Procurement Risk Assessment and Mitigation (PRAM), we continue to increase our efforts to mitigate risk in our manufacturing suppliers by collecting information on Environment, Health and Safety (EHS), labor and ethics practices in addition to their ability to provide goods or services in the future. The company maintains a leadership position within its collaboration with the Pharmaceutical Supply Chain Initiative (PSCI), which promotes Principles for Responsible Supply Chain Management among our suppliers and capacity building in developing countries.  We posted a Slavery and Human Trafficking Statement for the year ending December 2017 addressing measures taken to tackle slavery and human trafficking, which is responsive to the United Kingdom’s Modern Slavery Act of 2015 and the California Transparency in Supply Chains Act of 2010. 

As part of our responsibility towards Environmental Sustainability, our Go Green initiative held Annual Earth Day celebrations at 38 global company sites to engage employees to take action to protect the environment at work and at home. Bristol-Myers Squibb employees around the world demonstrated their commitment by participating in a range of activities from establishing on-site sustainable organic gardens to planting trees to recycling materials and cleaning greenways and watershed areas with the goal of building awareness about conservation of energy and water.

We continue our US Environmental Protection Agency (EPA) Treasure Hunt program.  To date, we have rolled out the program to 11 facilities worldwide looking for opportunities to reduce energy and water. To date, we have identified hundreds of opportunities to reduce emissions, energy and water consumption.  The changes have reduced greenhouse emissions by more than 19%, energy consumption by more than 16% and water consumption by more than 12%.  We held our first Treasure Hunt at a partnering hospital.  That effort resulted in a savings of 15% of the hospital’s total energy spend.    

Our Green Labs certification program that recognizes and encourages employees to reduce the environmental impact of their work, including energy, water and waste continued to grow with over 90% of all labs within the BMS facilities now participating.  Bristol-Myers Squibb received a 2018 Energy Star Partner of the Year Award for the fourth year in a row and earned the distinction of Sustaining Partner Status from the U.S. Environmental Protection Agency (EPA) and U.S. Department of Energy (DOE) for its comprehensive policies and programs to manage energy use at its facilities worldwide. Our research site in Hopewell, New Jersey was again recognized with the 2018 Energy Star Challenge for Industry award. In 2018 we launched an effort to green our fleet and reduced the carbon output by 3% (243,000) within the same year.

Since its inception in 2017 we’ve completed systematic reviews of 12 key pharmaceutical manufacturing and R&D facilities worldwide for potential water and wastewater risks (including resource availability and impact) and have identified numerous operational opportunities.  Separately, we actively support the Intelligent Assessment of Pharmaceuticals in the Environment (iPiE) program (a cooperative initiative by academia, industry, and the regulatory community) to assess and reduce the potential for environmental impact of medicines.  We reported our CO2 emissions and water use through the Carbon Disclosure Project (CDP). As members of the CDP Supply Chain Initiative we assessed our carbon footprint from 62 suppliers, a 40% increase from 2017. 

The Principles of Integrity -- our Standards of Business Conduct and Ethics for Employees provide a common framework for how we conduct business, interact with our colleagues and serve our patients. Employee training is required and a section on Anti-Corruption is included.  Additionally, we actively participate in many industry associations with the stated goal of enhancing global anti-corruption awareness and improved industry conduct. Examples include IFPMA, EFPIA, and PhRMA.

Our website contains additional information about our policies, goals and progress relevant to the U.N. Global Compact, as well as our Sustainability and Corporate Social Responsibility programs. These resources include our Sustainability Report, which follows the format of the Global Reporting Initiative (GRI), with measurement of outcomes related to various performance indicators and targets. Below is a list of the 21 Criterion identified for implementation of the 10 U.N. Global Compact principles and a table that identifies the relevant content from our website.

Implementing the Ten Principles into Strategies & Operations

Criterion 1: The COP describes mainstreaming into corporate functions and business units

Place responsibility for execution of sustainability strategy in relevant corporate functions (procurement, government affairs, human resources, legal, etc) ensuring no function conflicts with company’s sustainability commitments and objectives

Align strategies, goals and incentive structures of all business units and subsidiaries with corporate sustainability strategy

Ensure that different corporate functions coordinate closely to maximize performance and avoid unintended negative impacts
Criterion 2: The COP describes value chain implementation

Communicate policies and expectations to suppliers and other relevant business partners

Implement monitoring and assurance mechanisms (e.g. audits/screenings) for compliance within the company’s sphere of influence

 

Undertake awareness-raising, training and other types of capacity building with suppliers and other business partners

Robust Human Rights Management Policies & Procedures

Criterion 3: The COP describes robust commitments, strategies or policies in the area of human rights

Commitment to comply with all applicable laws and respect internationally recognized human rights, wherever the company operates (e.g., the Universal Declaration of Human Rights, Guiding Principles on Human Rights) (BRE1 + ARE1)

Integrated or stand-alone statement of policy expressing commitment to respect and support human rights approved at the most senior level of the company (BRE 1 + BRE5 + ARE 1 + ARE 5)

Statement of policy publicly available and communicated internally and externally to all personnel, business partners and other relevant parties (BRE 1 + BRE 5 + ARE 1 + ARE 5)

Criterion 4: The COP describes effective management systems to integrate the human rights principles

On-going due diligence process that includes an assessment of actual and potential human rights impacts (BRE 2 + BRE 3 + ARE 2 + ARE 3)

Internal awareness-raising and training on human rights for management and employees

Allocation of responsibilities and accountability for addressing human rights impacts

Process and programs in place to support human rights through: core business; strategic philanthropic/social investment; public policy engagement/advocacy; partnerships and/or other forms of collective action (BRE 6 + ARE 6)

Criterion 5: The COP describes effective monitoring and evaluation mechanisms of human rights integration

Any relevant policies, procedures, and activities that the company plans to undertake to fulfill this criterion, including goals, timelines, metrics, and responsible staff

System to monitor the effectiveness of human rights policies and implementation with quantitative and qualitative metrics, including in the supply chain (BRE3 + ARE3

Robust Labour Management Policies & Procedures

Criterion 6: The COP describes robust commitments, strategies or policies in the area of labour

Reference to principles of relevant international labour standards (ILO Conventions) and other normative international instruments in company policies

Inclusion of reference to the principles contained in the relevant international labour standards in contracts with suppliers and other relevant business partners

Specific commitments and Human Resources policies, in line with national development priorities or decent work priorities in the country of operation

Criterion 7: The COP describes effective management systems to integrate the labour principles

Risk and impact assessments in the area of labour

Internal awareness-raising and training on the labour principles for management and employees

Grievance mechanisms, communication channels and other procedures (e.g., whistleblower mechanisms) available for workers to report concerns, make suggestions or seek advice, designed and operated in agreement with the representative organization of workers

Criterion 8: The COP describes effective monitoring and evaluation mechanisms of labour principles integration

Audits or other steps to monitor and improve the working conditions of companies in the supply chain, in line with principles of international labour standards

Process to positively engage with the suppliers to address the challenges (i.e., partnership approach instead of corrective approach) through schemes to improve workplace practices

Robust Environmental Management Policies & Procedures

Criterion 9: The COP describes robust commitments, strategies or policies in the area of environmental stewardship

Reflection on the relevance of environmental stewardship for the company

 

Written company policy on environmental stewardship

Inclusion of minimum environmental standards in contracts with suppliers and other relevant business partners

Specific commitments and goals for specified years

Criterion 10: The COP describes effective management systems to integrate the environmental principle

Environmental risk and impact assessments

Assessments of lifecycle impact of products, ensuring environmentally sound management policies

Allocation of responsibilities and accountability within the organisation

Criterion 11: The COP describes effective monitoring and evaluation mechanisms for environmental stewardship

System to track and measure performance based on standardized performance metrics

Leadership review of monitoring and improvement results

  • Process to deal with incidents

Audits or other steps to monitor and improve the environmental performance of companies in the supply chain

Robust Anti-Corruption Management Policies & Procedure

Criterion 12: The COP describes robust commitments, strategies or policies in the area of anti-corruption

Publicly stated formal policy of zero-tolerance of corruption (D1)

Commitment to be in compliance with all relevant anti-corruption laws, including the implementation of procedures to know the law and monitor changes(B2)

Policy on anti-corruption regarding business partners (D5)

 

Criterion 13: The COP describes effective management systems to integrate the anti-corruption principle

Support by the organization’s leadership for anti-corruption (B4)

Human Resources procedures supporting the anti-corruption commitment or policy, including communication to and training for all employees (B5 + D8)

Internal checks and balances to ensure consistency with the anti-corruption commitment (B6)

Actions taken to encourage business partners to implement anti-corruption commitments (D6)

Management responsibility and accountability for implementation of the anti-corruption commitment or policy (D7)

Communications (whistleblowing) channels and follow-up mechanisms for reporting concerns or seeking advice (D9)

Criterion 14: The COP describes effective monitoring and evaluation mechanisms for the integration of anticorruption

Process to deal with incidents (D13)

Taking Action in Support of Broader UN Goals and Issues

Criterion 15: The COP describes core business contributions to UN goals and issues

Align core business strategy with one or more relevant UN goals/issues

Develop relevant products and services or design business models that contribute to UN goals/issues

Adopt and modify operating procedures to maximize contribution to UN goals/issues

Criterion 16: The COP describes strategic social investments and philanthropy

Pursue social investments and philanthropic contributions that tie in with the core competencies or operating context of the company as an integrated part of its sustainability strategy

Criterion 17: The COP describes advocacy and public policy engagement

Publicly advocate the importance of action in relation to one or more UN goals/issues

Commit company leaders to participate in key summits, conferences, and other important public policy interactions in relation to one or more UN goals/issues

Criterion 18: The COP describes partnerships and collective action

Develop and implement partnership projects with public or private organizations (UN entities, government, NGOs, or other groups) on core business, social investments and/or advocacy

Join industry peers, UN entities and/or other stakeholders in initiatives contributing to solving common challenges and dilemmas at the global and/or local levels with an emphasis on initiatives extending the company’s positive impact on its value chain

Corporate Sustainability Governance and Leadership

Criterion 19: The COP describes CEO commitment and leadership

CEO publicly delivers explicit statements and demonstrates personal leadership on sustainability and commitment to the UN Global Compact

CEO promotes initiatives to enhance sustainability of the company’s sector and leads development of industry standards

CEO leads executive management team in development of corporate sustainability strategy, defining goals and overseeing implementation

Criterion 20: The COP describes Board adoption and oversight

Board of Directors (or equivalent) assumes responsibility and oversight for long-term corporate sustainability strategy and performance

 

Board establishes, where permissible, a committee or assigns an individual board member with responsibility for corporate sustainability.

Criterion 21: The COP describes stakeholder engagement

Publicly recognize responsibility for the company’s impacts on internal and external stakeholders

Consult stakeholders in dealing with implementation dilemmas and challenges and invite them to take active part in reviewing performance

 

Establish channels to engage with employees and other stakeholders to hear their ideas and address their concerns, and protect ‘whistle-blowers’