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ESG FAQs

ESG FAQs

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How is ESG (Environmental, Social & Governance) aligned with your strategy?
  • Our mission is to serve patients and our strategy is centered on increasing our ability to serve patients globally with medicines treating serious illnesses that place a tremendous burden on society and individuals. We also believe that our mission to serve patients extends beyond our medicines to include supporting communities in which we live and work, operating in an environmentally sound and ethical manner, inspiring the next generation of scientists and creating an inclusive and diverse workplace.
  • Programs like “Access to Medicine” are directly aligned with our mission to serve patients around the world by expanding access to our medicines. In 2018, the Amgen Safety Net Foundation donated ~$1 billion (commercial value) of our medicines in the U.S. Outside the U.S., through Direct Relief, we’ve provided more than $90 million of our medicines to patients in 15 low-to-middle income countries. We’re committed to the development of biosimilars because of the additional treatment options they provide to patients and the positive impact they can have on the entire health care system. At a time when health care costs are rising, we aspire to contribute to a more sustainable health care system by providing more options and cost savings through our biosimilar medicines.
  • We are in a long-cycle business and focused, therefore, on inspiring the scientists of tomorrow by increasing access to science, technology, engineering and mathematics education. The Amgen Foundation has invested more than $150 million in a range of hands-on and virtual science, technology, engineering and mathematics education programs that have reached more than 7 million students around the world.
  • Designing and operating our facilities in a manner that reduces environmental impact not only ensures that these facilities can operate in the long-run, but also saves money and reduces health-related impacts. For instance, our energy and carbon reduction efforts have generated significant savings, and the next-generation manufacturing we pioneered in our facility in Singapore is demonstrating significant efficiency and environmental benefits when compared with traditional facilities.
  • Since innovation is at the heart of Amgen’s strategy, it is important to have a workforce that supports and enhances that innovation – which is one of the reasons we embrace an inclusive and diverse workplace. Our Executive Diversity and Inclusion Council, which is chaired by our CEO is one example of our commitment in this area, as are the ~4,000 employees participating in Employee Resource Groups around the globe.
Describe governance at Amgen including governance of ESG

Governance is described below using 4 principles: 1) Governance structure; 2) Board composition; 3) Oversight of strategy and risk; and 4) Executive compensation.

Governance structure

  • The board has four key standing committees: Governance and Nominating Committee (“Governance Committee”); Audit Committee; Corporate Responsibility and Compliance Committee (“Compliance Committee”); and Compensation and Management Development Committee (“Compensation Committee”).  Independent directors serve on each of these committees.
  • The Governance Committee assists the Board in fulfilling its fiduciary responsibilities with respect to the oversight of the Company’s affairs in the areas of corporate governance and Board membership matters. 

Governance and Nominating Committee

Board composition

  • Our highly independent Board of Directors possesses a deep and broad set of skills and experiences that facilitate strong oversight and strategic direction of Amgen.
  • The independent members of the Board elect a lead independent director on an annual basis and the lead independent director has robust responsibilities and authorities.
  • Our Governance Committee is responsible for determining Board membership qualifications and for selecting, evaluating, and recommending to the Board nominees for annual election to the Board and to fill vacancies as they arise. The Governance Committee regularly reviews and reports to the Board on the composition and size of the Board, and makes recommendations, as necessary, so that the Board reflects the appropriate balance of knowledge, experience, skills, and expertise, and diversity advisable for the Board as a whole. The Governance Committee maintains guidelines for selecting nominees to serve on the Board.

Board of Directors Guidelines for Director Qualifications and Evaluations

Oversight of strategy and risk

  • Our Board of Directors oversees an enterprise-wide approach to risk management, which is designed to support the achievement of the Company’s objectives. Our Board believes that a fundamental part of risk management is understanding the risks that we face, monitoring these risks, and adopting appropriate control and mitigation of these risks. We have implemented an Enterprise Risk Management, or ERM program which is a Company-wide effort to identify, assess, manage, report and monitor enterprise risks that may affect our ability to achieve the Company’s objectives.
  • The ERM program involves our Board and management and is overseen by one of our senior executive officers. Enterprise risks are identified and managed by management and the business function and overseen by the Board or the appropriate Board committee.
  • Our Board has a standing Compliance Committee. The Compliance Committee assists the Board in overseeing the Company’s activities in the areas of corporate responsibility and compliance.
  • Two cross-functional internal committees of senior management (Corporate Responsibility and Reputational Council and Corporate Responsibility and Reputation Committee) ensure our culture of compliance and business ethics are the foundation of our strategy, goals and objectives. The global patient safety department serves patients by monitoring the safety of Amgen products (medicine, device and combination products) through the science of Pharmacovigilance1. Amgen collects and analyzes safety data throughout a product’s life cycle. Product safety is rigorously evaluated during the development process through clinical trials and when the product receives marketing approval from health authorities. Safety data collection continues through additional clinical studies, reports by patients and health care professionals, registries, scientific literature, and external database reviews to identify safety signals that could potentially suggest new adverse events might be linked to or associated with the use of our products. Amgen conducts ongoing benefit/risk assessments of our products whenever new benefit or risk information related to the product becomes available.

1Pharmacovigilance refers to the monitoring, reviewing, evaluating and communicating of information on the safety of pharmaceutical products

Corporate Responsibility & Compliance Committee

Patient Safety

Executive compensation

  • The Compensation Committee oversees compensation plans, policies and programs of the Company, especially those regarding executive compensation and employee benefits. This committee evaluates the performance of the CEO and executive management at least annually for purposes of determining executive compensation and succession planning.
  • The Compensation Committee ensures that compensation programs are designed to encourage high performance, promote accountability and adherence to the Company values and code of conduct, assure that employee interests are aligned with the interests of the Company’s stockholders, serve the long-term best interests of the Company and ensure that the executive management development processes are designed to attract, develop and retain talented leadership to serve the long-term best interests of the Company.
  • The Compensation Committee evaluates the performance of the CEO within the context of the financial and operational performance of the Company, considering competitive market data, and establishes the CEO’s compensation based on this evaluation. Some of our risk management features include recoupment provisions and a claw back policy that requires our Board to consider recapturing past cash or equity compensation payouts awarded.
Compensation and Management Development Committee
Describe Amgen’s values tied to diversity
  • We are a firm believer of inclusion fostering innovation and driving our ability to serve patients. In 2018, we expanded our approach to creating a diverse and inclusive work environment by setting new goals and implementing a strategy to leverage our diversity and create a more inclusive workplace.
  1. Increase the percentage of women in management and executive roles (global)
  2. Increase the percentage of African Americans in scientific positions and the percentage African American and Hispanics in executive director and above roles (U.S.)
  3. Looking for ways to increase participation of disabled persons and veterans in the workforce
  • We have an Executive Diversity & Inclusion (D&I) council chaired by our CEO and composed of his direct reports. Each member of the Executive D&I Council has a sponsorship role with the company’s nine Employee Resource Groups, in which ~4,000 staff members participate. In 2018, this program became global.
  • 52% of our global workforce is female and 35% of our staff in the U.S. are minorities.
  • At Amgen we understand that to successfully grow as a global enterprise and deliver for patients, we must ensure a diverse and inclusive work environment embracing diversity of opinion.
    Diversity and Inclusion
How much money does Amgen contribute to political spend/lobbying activities?
  • In the U.S., Amgen participates in the political process and its political action committee (PAC) supports those candidates and political committees that work to advance healthcare innovation and improve patient access to new and existing therapies.
  • The Corporate Responsibility and Compliance Committee annually reviews Amgen's policies, practices, and overall p• Amgen’s policy and disclosures on transparency around political contribution can be found at: hilosophy for making political contributions.
  • Amgen’s policy and disclosures on transparency around political contribution can be found at:
    Political Contributions
What reporting standards regarding ESG does Amgen adhere to?
  • In determining what and how we report externally, Amgen considers a wide range of international standards and guidelines, including those developed by the Global Reporting Initiative (GRI), CDP (formerly Carbon Disclosure Project), Sustainability Accounting Standards Board (SASB), the Task Force on Climate-Related Financial Disclosures (TCFD), the United Nations Global Compact and Sustainable Development Goals (SDGs).
  • Amgen currently aligns the communication in the Responsibility Highlights Report with the United Nations Global Compact and Sustainable Development Goals. In addition, we report our climate change and water performance through CDP while we continue investigating the trends in regard to reporting standards.
Where would you say AMGN is on its four Environmental 2020 goals?

a) We have a strong commitment to environmentally sustainable operations and have met 3 of our 4 2020 targets ahead of schedule as reported in the environmental section of our 2018 Responsibility highlights report.

1. Carbon: Reduce 3,000 metric tons of fleet carbon (20% of 2012 base)- Result: reduced 3,200 metric tons
2. Carbon: Reduce 38,500 metric tons of facility carbon (10% of 2012 baseline)- Result: Reduced 42,000 metric tons           
3. Water- Reduce 269,000 cubic meters (10% of 2012 baseline)- Result: Reduced 278,000 cubic meters
4. Waste- Reduce 1,490 metric tons of waste to landfill or incineration (35% of 2012 baseline)- Result: Reduced 1,300 metric tons
Environment

How is safety managed at Amgen and what plans are in place to mitigate risk?
  • Patient safety is our highest priority. Our global patient safety department takes a comprehensive and rigorous approach to pharmacovigilance activities. Pharmacovigilance is a comprehensive set of activities focused on the detection, assessment, understanding and prevention of adverse effects or other product-related problems. We are dedicated to establishing, maintaining, and communicating quality safety information throughout the life-cycle of Amgen products. Part of Amgen’s mission to serve patients includes collecting, reviewing and reporting adverse events, other safety findings, and product complaint information associated with the use of Amgen’s investigational and marketed products.
    Global Patient Safety
  • With regard to clinical trials, the process that brings a new drug from the research laboratory to the marketplace is a long and careful process. Careful, because all those involved must ensure patient safety and follow strict government regulations evaluating the drug’s safety and efficacy. Before a drug enters the clinical trial phase, it is extensively tested through basic or preclinical research in the laboratory, both in lab experiments and in animals.
    Clinical Trials
  • As it relates to our staff, our goal is to have a world class safety record through safety leadership and risk management practices integrating safety through our business processes. Our safety record is among the best in the industry. We have implemented a comprehensive safety program, driving to understand and mitigate the root cause of safety incidents. We annually gather Operations and Research & Development leadership to discuss performance, share lessons learned and create annual safety goals.
  • In 2018 we set a goal of 0.27 incidents or less per 100 staff. Though we fell short of meeting that goal (0.41), we continue to focus on new and improved ways to promote staff safety. As it relates to contractors, in 2018, we surpassed our goal for contractor safety of 0.7 incidents or less per 100 contractors, ending the year with a rate of 0.42.
  • In terms of chemical safety, we have a robust business process for management of chemicals. Through this system, chemical inventory is closely monitored from the time it is purchased to the time of disposal.
    Safety and Wellness
How do you retain talent and ensure staff enjoy working at Amgen?
  • We believe our company’s mission to serve patients and the noble purpose it entails is the primary manner we attract and retain our staff.
  • Our culture of innovation and a can-do environment combined with the opportunity to collaborate with intelligent people provides the right context to ensure our staff remain engaged. We strengthen that foundation with strong pay and benefits as well as developmental opportunities.
  • We monitor and respond to employee satisfaction and engagement via regular, confidential, multidimensional surveys. The survey measures employees’ self-reported perceptions of and reactions toward various aspects of organizational culture that are important to Amgen’s mission and strategic priorities (e.g., engagement, innovation, agility, global expansion). The survey is distributed to all Amgen staff worldwide. This helps leaders identify strengths to leverage and opportunities to improve employee satisfaction, engagement and organizational performance.
  • We monitor turnover closely, including voluntary and involuntary departures and retirements, as well as the nature of turnover.
  • We are actively monitoring our talent through talent reviews and succession planning.
    Life at Amgen
What is your pricing strategy, and do you take into account socio-economic factors?
  • Our mission requires that we engage with the many stakeholders in the healthcare system to tackle concerns over the cost of prescription drugs while also maintaining systemic incentives for innovation so that we can continue to attack serious diseases. Our vision for our Company’s role in society over the longer-term is as an agent for change as we strive to “bend the curve” on the rising burden of disease for patients, healthcare systems and other stakeholders.
  • We are developing/manufacturing biosimilars that enable us to provide more affordable versions of existing medicines.
  • Amgen Safety Net Foundation (ASNF) is an independent, non-profit assistance program to assist qualifying patients who experience financial difficulties, are uninsured or whose insurance plan excludes Amgen medications. It has provided ~$5.5B of support to patients in the U.S. since 2008.
    Our Approach to Pricing, Access and Affordability of Our Medicines
Describe how Amgen thinks about ESG issues of greatest importance?
  • In 2017, Amgen conducted a stakeholder assessment to update and enhance our understanding of the responsibility issues of greatest importance to stakeholders. The results suggested enhancing access to medicine, making safe and effective medicines and conducting business in an ethical manner are the top three most important and impactful issues. This information was used to shape our approach to programs and reporting. We plan to conduct additional stakeholder assessments to ensure we stay on top of the most critical issues to our us and our stakeholders.
    Reporting and Metrics

Publish Date 2/12/2020