Our sustainable business strategy

celebrating 20 years Our sustainable business strategy

We recognise that doing business in a sustainable and responsible manner is integral to ensuring our future viability. Sustainability considerations underpin our strategy and are integrated into the way we do business.

 

Our vision unites us in our purpose

“To deliver value to all of our stakeholders as a responsible corporate citizen that provides high quality, affordable medicines and products globally”

 

Our shared values are the foundation as we work together toward achieving our vision

Teamwork
Innovation
Commitment
Excellence
Integrity
 

Our strategic objectives provide the framework for our plan of action to achieve our short, medium and long-term goals

 

Our sustainability objectives provide the framework for us to respond to the environmental, social and governance issues and risks that are most relevant for our stakeholders and to Aspen.

 

Our material issues

Our material issues are grouped into our sustainability objectives, which are aligned to our strategy. We consider material issues to be those that have the potential to substantially impact our ability to create and sustain value for our stakeholders over the short, medium and long-term. We review these issues and risks each year with reference to:

  • identifying and assessing the needs of our stakeholders through constructive engagement with them;
  • our external operating context;
  • key business risks impacting our sustainability;
  • the value exchange and/or opportunity costs of applying our available capitals and our responsible management of these (pages 42 to 79); and
  • our responsibility to provide relevant and transparent reporting with reference to the GRI, King IV, the Companies Act of South Africa, the Department of Trade and Industry's BBBEE Codes of Good Practice ("BBBEE Codes") in South Africa, the FTSE/JSE Responsible Investment Index, the Carbon and Water Security Disclosure Projects and the UN Global Compact.

Implementation of our strategy

We implement our strategy by applying the resources we have available in execution of our business model to drive growth and create sustainable value.

We have identified key performance indicators designed to provide a defined measure of performance against our strategic and related sustainability objectives. We track our performance by reporting against these KPIs to the Board on a quarterly basis. In this way, the performance of executive directors, executives and senior management is aligned to our sustainable business strategy.

Our strategic objectives     Our sustainability objectives     Our capitals     Key Performance Indicator (“KPI”)

To enhance access to high quality, affordable medicines

   

Sustaining life and health through high quality, affordable medicines

   
Intellectual
   
  • IMS✝ value of total product pipeline for the next five years
  • Number of product recalls

To achieve strategic advantage through our integrated supply chain

   

Sustaining a cost-competitive manufacturing base

   
Manufactured
   
  • Return on total assets
  • Normalised EBITDA margin

To provide a safe, challenging and rewarding environment for our employees

   

Creating an environment in which our employees can thrive

   
Human
   
  • Average staff turnover
  • Average training spend per employee

Providing a safe working environment

  • Disabling incident frequency ratio (“DIFR”)
  • Lost work day frequency ratio (“LWDFR”)

To practise good corporate citizenship

   

Promoting equality

   
Social & relationship
   
  • BBBEE accreditation in South Africa*
  • Percentage of female employees
  • Percentage of females in top 100 positions in the Group
  • Percentage of black employees in South Africa*
  • Percentage of black employees in top 50 positions in South Africa*

Conducting our business in a responsible manner

  • Number of significant incidents of legislative infringements
  • FTSE/JSE Responsible Investment Index score

Preserving the environment


Natural
  • Carbon emissions#
  • Waste recycled#

Managing the efficient utilisation of scarce resources

  • Water used#
  • Electricity used#

To create sustainable economic value for all of our stakeholders

   

Adding economic value to stakeholders

   
Financial
   
  • Growth in revenue
  • Growth in NHEPS
  • Growth in normalised EBITDA
  • Return on ordinary shareholders’ equity

Maintenance of financial health

  • Operating cash flow per share
  • Leverage ratio

# Measured for manufacturing sites only (does not include New Zealand New Milk (“NZNM”) * South African businesses only

IMS Health (Pty) Limited, a leading provider of healthcare and pharmaceutical market intelligence (“IMS”)

Assurance on our KPIs

We obtain assurance on these reported KPIs through a combined assurance approach:

ERM PwC Internal Audit Empowerdex Group Compliance Officer Review

Further discussion on combined assurance is included here.

Additional sustainability related data is available on the Sustainability Data Supplement online.