CDP. Module: Introduction. Page: W0. Introduction. Water 2015 Information Request W0.1. Introduction

Transcription

1 CDP Water 2015 Information Request Roche Holding AG Module: Introduction Page: W0. Introduction W0.1 Introduction Please give a general description and introduction to your organization. Roche is a world leader in research-focused healthcare and has its headquarters in Basel, Switzerland. Our core competencies and strengths lie within the area of pharmaceuticals and diagnostics and we make our products accessible to as many people as possible, regardless of country or background. Our aim is to create, produce and market innovative solutions of high quality for unmet medical needs. Our products and services help to prevent, diagnose and treat diseases, thus enhancing people s health and quality of life. We are the world's largest biotech company with truly differentiated medicines in oncology, virology, inflammation, metabolism and CNS. Roche is also the world leader in in vitro diagnostics, tissue-based cancer diagnostics and a pioneer in diabetes management. Our personalised healthcare aims at providing medicines and diagnostic tools that enable tangible improvements in the health, quality of life and survival of patients. In 2013, Roche had over 85,000 employees worldwide and invested more than 8 billion Swiss francs in R&D. The Group posted sales of 46.7 billion Swiss francs. Genentech, United States, is a wholly owned member of the Roche Group and Roche has a majority stake in Chugai Pharmaceutical, Japan. Roche aims at conducting its business in a sustainable way. It has been rated as sector leader in the Dow Jones Sustainability Index five times in a row. For more information see W0.2 Reporting year Please state the start and end date of the year for which you are reporting data. Period for which data is reported Wed 01 Jan Wed 31 Dec 2014

2 W0.3 Reporting boundary Please indicate the category that describes the reporting boundary for companies, entities, or groups for which water-related s are reported. Companies, entities or groups over which control is exercised W0.4 Exclusions Are there any geographies, facilities or types of water inputs/outputs within this boundary which are not included in your disclosure? No W0.4a Exclusions Please report the exclusions in the following table Exclusion Please explain why you have made the exclusion Further Information Module: Current State

3 Page: W1. Context W1.1 Please rate the importance (current and future) of water quality and water quantity to the success of your organization Water quality and quantity Direct use importance rating Indirect use importance rating Please explain Sufficient amounts of good quality freshwater available for use Sufficient amounts of recycled, brackish and/or produced water available for use Vital for operations Vital for operations Important Neutral Direct use: Although the 'clean' water entering our operations is always cleaned again before use (regardless of its source), it is vital for operations. Almost all processes in chemical, biotech, pharmaceutical and diagnostic manufacturing involve water as a reagent, solvent or cleaning agent. In addition water is used as an energy carrier in refrigeration and heating installations. Furthermore our employees also require access to clean water. Indirect use: Roche relies on its suppliers for business success. Our suppliers require water for process and manufacturing purposes. Suppliers who lose access to water pose a risk to Roche that could hinder business continuity. Thus the availability of high quality water to Roche's suppliers is critical to Roche for running its business. Roche encourage efficient use of resources which includes water. Direct use: Some Roche affiliates use brackish water e.g. from a river, for cooling purposes. It is drawn from source, used and returned uncontaminated back to the source. We do not use fresh drinking water for such purposes when such an alternative is available. Indirect use: Roche's suppliers who use recycled, brackish and/or produced water do so because, among other things, their business allows it and its use does not result in business risks for themselves or the companies that they supply. Such water is often used for cooling. Roche supports and encourages efficient use of resources. W1.2 For your total operations, please detail which of the following water aspects are regularly measured and monitored and provide an explanation as to why or why not

4 Water aspect % of sites/facilities/operations Please explain Water withdrawals- total volumes Water withdrawalsvolume by sources Water discharges- total volumes Water discharges- volume by destination Where the demand for sufficient amounts of clean water is increasing and globally is set to dwarf supply in the foreseeable future, Roche faces physical, reputational and regulatory risks therefore monitoring our withdrawals is material. The data is collected within the framework of our annual key figure reporting process. All sites with approximately 120 employees or more deliver this information. Most importantly it includes all production sites and sites that are exposed to water risks. Using this approach we aim to measure at least 95% of this parameter. The remaining 5% would contribute to approx. 1% of total and is therefore not necessary to collect. With this data, water can be monitored at both the local and global level. This enables us to act where and when necessary to ensure business continuity without negatively ing on the local water basin and hence community. Where the demand for sufficient amounts of clean water is increasing and globally is set to dwarf supply in the foreseeable future, Roche faces physical, reputational and regulatory risks therefore monitoring our withdrawals is material. The data is collected within the framework of our annual key figure reporting process. All sites with approximately 120 employees or more deliver this information. Most importantly it includes all production sites and sites that are exposed to water risks. Using this approach we aim to measure at least 95% of this parameter. The remaining 5% would contribute to approx. 1% of total and is therefore not necessary to collect. We consider all sources of water. Using this approach we aim is to collect at least 95% of this parameter. This enables us to act where and when necessary to ensure business continuity without negatively ing on the local water basin and hence community. Where the demand for sufficient amounts of clean water is increasing and globally is set to dwarf supply in the foreseeable future, Roche faces physical, reputational and regulatory risks therefore monitoring our discharges is material. The data is collected within the framework of our annual key figure reporting process. All sites with approximately 120 employees or more deliver this information. Most importantly it includes all production sites and sites that are exposed to water risks. Using this approach we aim to measure at least 95% of this parameter. The remaining 5% would contribute to approx. 1% of total and is therefore not necessary to collect. With this data water can be monitored at both the local and global level. This enables us to act where and when necessary to ensure business continuity without negatively ing on the local water basin and community. Where the demand for sufficient amounts of clean water is increasing and globally is set to dwarf supply in the foreseeable future, Roche faces physical, reputational and regulatory risks therefore monitoring our discharges is material. The data is collected within the framework of our annual key figure reporting process. All sites with approximately 120 employees or more deliver this information. Most importantly it includes all production sites and sites that are exposed to water risks. Using this approach we aim to measure at least 95% of this parameter. The remaining 5% would contribute to approx. 1% of total and is therefore not necessary to collect. We consider all water destinations both indirect via a WWTP or direct to destination. Water discharges- volume Where the demand for sufficient amounts of clean water is increasing and globally is set to dwarf

5 Water aspect % of sites/facilities/operations Please explain by treatment method Water discharge quality data- quality by standard effluent parameters Water consumption- total volume Facilities providing fullyfunctioning WASH services for all workers supply in the foreseeable future, Roche faces physical, reputational and regulatory risks therefore monitoring our discharges is material. The data is collected within the framework of our annual key figure reporting process. All sites with approximately 120 employees or more deliver this information. Most importantly it includes all production sites and sites that are exposed to water risks. Using this approach we aim to measure at least 95% of this parameter. The remaining 5% would contribute to approx. 1% of total and is therefore not necessary to collect. All water that is ly contaminated is cleaned by going through either our own waste water treatment plant (WWTP) or communal WWTP. Where the demand for sufficient amounts of clean water is increasing and globally is set to dwarf supply in the foreseeable future, Roche faces physical, reputational and regulatory risks therefore monitoring our discharges is material. The data is collected within the framework of our annual key figure reporting process. All sites with greater than 120 employees deliver this information. Most importantly it includes production sites and sites exposed to water risks. Using this approach we aim to measure at least 95% of this parameter. The remaining 5% would contribute to approx. 1% of total and is therefore not necessary to collect. We collect information on total organic carbon, heavy metal content and inorganic emissions e.g. phosphorus and nitrogen. With this data water can be monitored at both the local and global level. This enables us to act where and when necessary to ensure business continuity without negatively ing on the local water basin and hence community. Where the demand for sufficient amounts of clean water is increasing and globally is set to dwarf supply in the foreseeable future, Roche faces physical, reputational and regulatory risks. The data is collected within the framework of our annual key figure reporting process. All sites with approximately 120 employees or more deliver this information. Most importantly it includes all production sites and sites that are exposed to water risks. Using this approach we aim to measure at least 95% of this parameter. The remaining 5% would contribute to approx. 1% of total and is therefore not necessary to collect. It includes all sites that are exposed to water risks. With this data water can be monitored at both the local and global level. This enables us to act where and when necessary to ensure business continuity without negatively ing on the local water basin and hence community. WASH services for all workers are monitored throughout Roche. Many sites belonging to Roche have fully-functioning WASH services and therefore monitoring is reduced at these sites. At other sites, where fully-functioning WASH services is an issue, monitoring is frequent. Without WASH services sustainable development is impossible. It is material to Roche that its employees have free access to clean water for drinking, cooking and cleaning purposes, access to toilets and solid waste management and drainage. Without this Roche faces clear reputational and risks. Access to WASH services is the very least an employee can expect and deserves. W1.2a

6 Water withdrawals: for the reporting year, please provide total water withdrawal data by source, across your operations Source Quantity (megaliters/year) How does total water withdrawals for this source compare to the last reporting year? Comment Fresh surface water Brackish surface water/seawater Rainwater Groundwater - renewable Groundwater - nonrenewable Produced/process water Municipal supply This is our first year of measurement This is our first year of measurement This is our first year of measurement This is our first year of measurement This is our first year of measurement This is our first year of measurement This is our first year of measurement We have been collecting information on water since Up until last year we concentrated on tracking total water withdrawals and discharges. However, since the publication of the GRI 4 guidelines we are now tracking water sources and water destinations. We have been collecting information on water since Up until last year we concentrated on tracking total water withdrawals and discharges. However, since the publication of the GRI 4 guidelines we are now tracking water sources and water destinations. We have been collecting information on water since Up until last year we concentrated on tracking total water withdrawals and discharges. However, since the publication of the GRI 4 guidelines we are now tracking water sources and water destinations. We have been collecting information on water since Up until last year we concentrated on tracking total water withdrawals and discharges. However, since the publication of the GRI 4 guidelines we are now tracking water sources and water destinations. We have been collecting information on water since Up until last year we concentrated on tracking total water withdrawals and discharges. However, since the publication of the GRI 4 guidelines we are now tracking water sources and water destinations. The volume of produced / process water is approximately 1% of the total withdrawal. We have been collecting information on water since Up until last year we concentrated on tracking total water withdrawals and discharges. However, since the publication of the GRI 4 guidelines we are now tracking water sources and water destinations. We have been collecting information on water since Up until last year we concentrated on tracking total water withdrawals and discharges. However, since the publication of the GRI 4 guidelines we are now tracking water sources and water destinations. Wastewater from This is our first year of We have been collecting information on water since Up until last year we

7 Source Quantity (megaliters/year) How does total water withdrawals for this source compare to the last reporting year? Comment another organization measurement concentrated on tracking total water withdrawals and discharges. However, since the publication of the GRI 4 guidelines we are now tracking water sources and water destinations. Total This is our first year of measurement We have been collecting information on water since Up until last year we concentrated on tracking total water withdrawals and discharges. However, since the publication of the GRI 4 guidelines we are now tracking water sources and water destinations. W1.2b Water discharges: for the reporting year, please provide total water discharge data by destination, across your operations Destination Quantity (megaliters/year) How does total water discharged to this destination compare to the last reporting year? Comment Fresh surface water Brackish surface water/seawater Groundwater This is our first year of measurement This is our first year of measurement This is our first year of measurement We have been collecting information on water since Up until last year we concentrated on tracking total water withdrawals and discharges. However, since the publication of the GRI 4 guidelines we are now tracking water sources and water destinations. We have been collecting information on water since Up until last year we concentrated on tracking total water withdrawals and discharges. However, since the publication of the GRI 4 guidelines we are now tracking water sources and water destinations. We have been collecting information on water since Up until last year we concentrated on tracking total water withdrawals and discharges. However, since the publication of the GRI 4 guidelines we are now tracking water sources and water destinations.

8 Destination Quantity (megaliters/year) How does total water discharged to this destination compare to the last reporting year? Comment Municipal treatment plant Total This is our first year of measurement This is our first year of measurement For Roche it is important to know where the final destination is and therefore looks beyond the municipal treatment plant. Roche's data collection concentrates on final destination and the municipal treament plant is not the final destination. We have been collecting information on water since Up until last year we concentrated on tracking total water withdrawals and discharges. However, since the publication of the GRI 4 guidelines we are now tracking water sources and water destinations. The total given also includes water to third parties which is not part of the list. W1.2c Water consumption: for the reporting year, please provide total water consumption data, across your operations Consumption (megaliters/year) How does this consumption figure compare to the last reporting year? Comment This is our first year of measurement We have been collecting information on water since Up until last year we concentrated on tracking total water withdrawals and discharges. However, since the publication of the GRI 4 guidelines we are now tracking water sources and water destinations. W1.3 Do you request your suppliers to report on their water use, risks and/or management?

9 Yes W1.3a Please provide the proportion of suppliers you request to report on their water use, risks and/or management and the proportion of your procurement spend this represents Proportion of suppliers % Total procurement spend % Rationale for this coverage We have identified 55 key suppliers out of approx In an initial project we are gathering information on their water use, risks and management with the aim of working with them to reduce their environmental footprint in the long term. This is in a pilot phase where we intend to generate the experience necessary to expand this kind of project to a larger scale in the upcoming years. Consequently the coverage of a significant stake of our procurement spend was not our first priority. W1.3b Please choose the option that best explains why you do not request your suppliers to report on their water use, risks and/or management Primary reason Please explain W1.4 Has your organization experienced any detrimental s related to water in the reporting period?

10 No W1.4a Please describe the detrimental s experienced by your organization related to water in the reporting year Country Impact indicator Impact of Length of Overall of W1.4b Please choose the option below that best explains why you do not know if your organization experienced any detrimental s related to water in the reporting year and any plans you have to investigate this in the future Primary reason Future plans Further Information Module: Assessment Page: W2. Procedures and Requirements

11 W2.1 Does your organization undertake a water-related risk assessment? Water risks are assessed W2.2 Please select the options that best describe your procedures with regard to assessing water risks assessment procedure Coverage Scale Please explain Comprehensive company-wide risk assessment Direct operations and supply chain All facilities and some suppliers Facilities: management forms an integral part of the business planning process. Centrally, Roche determines that water risk assessments must be performed. Documentation and training is provided on high level procedures. Water risks are identified, assessed and managed at the asset level i.e. the individual affiliates by local staff because water issues are best monitored and managed at the local level where effective targets can be set. The risks are evaluated by combining s on e.g. and reputation as well as the probability of occurrence e.g. 1 in 10 or 1 in 1000 years. Business plans are developed for each risk, including plans for the most material risks. The findings are reported to Chief Manager at Group SHE at head office in Basel. The information is consolidated in a data base and sent to Group Advisory who compiles an annual Group Report and distribute it for review to the Corporate Executive Committee and the Audit Committee of the Board of Directors. Group SHE auditors check the identified risks, mitigation plans and action procedures. Suppliers: s at the level of the supply chain are identified, assessed and managed by the procurement department. Only key suppliers have been prioritised i.e. suppliers that have a relevant environmental footprint in which water is a component. We are using an environmental scorecard similar to the Procter & Gamble Scorecard in order to measure the footprint and the performance. W2.3

12 Please state how frequently you undertake water risk assessments, what geographical scale and how far into the future you consider risks for each assessment Frequency Geographic scale How far into the future are risks considered? Comment Every two years Every two years Region 1 to 3 years 1 to 3 years Water quantity and quality is a material risk at some sites/facilities. At sites where water quantity is considered scarce (particularly in times of drought), there are mitigation plans in place which are sufficient to cover any significant risk to the site e.g. disruption of operations. If operations remain stable then the frequency remains low e.g. every two years. A new risk assessment is performed if a significant change occurs. Roche is aware water quantity is an issue in some regions where it has operations. These sites monitor the situation and listen to their stakeholders. assessments show that if the regional situation remains stable there is no risk. If the region has a drought over an unusually long period Roche works to reduce its water withdrawal. This would trigger a new risk assessment for the facility and region. W2.4 Have you evaluated how water risks could affect the success (viability, constraints) of your organization's growth? Yes, evaluated over the next 5 years W2.4a Please explain how your organization evaluated the effects of water risks on the success (viability, constraints) of your organization's growth? management forms an integral part of the business planning process. Water risks are identified e.g. water scarcity at our sites in California, assessed and managed at the asset level i.e. the individual affiliates by local staff e.g. the Safety, Security, Health and Environmental Protection (SHE) Officer. Water scarcity has the of decreasing production output. The risks are evaluated by combining s on e.g. and reputation as well as the probability of occurrence

13 e.g. 1 in 10 or 1 in 1000 years. Business plans are developed for each risk, including plans for the most material risks. The findings are reported to Chief Manager at Group SHE at head office in Basel. The information is consolidated in a data base and sent to Group Advisory who compiles an annual Group Report and distributes it for review to the Corporate Executive Committee and the Audit Committee of the Board of Directors where the results of the assessment are discussed in relation to the growth. Group SHE auditors check the identified risks, mitigation plans and action procedures. The results of the water risk assessments suggest that water quantity and quality could ly affect the growth of the company by ing on already threatened sites. However, even at sites where water quantity is considered scarce (particularly in times of drought e.g. our sites in California), their mitigation plans are sufficient to cover any risk to the site e.g. disruption of operations. If operations remain stable then the frequency remains low e.g. every two years. A new risk assessment is performed if a significant change occurs. W2.4b What is the main reason for not having evaluated how water risks could affect the success (viability, constraints) of your organization's growth, and are there any plans in place to do so in the future? Main reason Current plans Timeframe until evaluation Comment W2.5 Please state the methods used to assess water risks Method Please explain how these methods are used in your risk assessment WBCSD Global Water Tool WRI Aqueduct Other: Roche SHE Management System (Internal Directive K9) Roche SHE Management System (Internal Directive K9) is binding for all companies of the Roche Group. Its scope is limited to risks related to Safety, Security, Health and the Environment (SHE). The main objective of the Roche SHE Management System (Internal Directive K9) is to promote prevention, in order to secure a safe, environmentally compatible and profitable business. As such, SHE risk management is an important process to ensure business continuity. This directive provides a generic framework for assessing, monitoring and communicating SHE risks. The WBSCD Global Water Tool and WRI

14 Method Please explain how these methods are used in your risk assessment Aqueduct are used in parallel and supplement / complement each other. All three methods are used to evaluate regional water related risks on our operations. The outcome of the risk assessment will determine the size of the. Low risk levels warrant a small while a larger risk warrants a larger. W2.6 Which of the following contextual issues are always factored into your organization's water risk assessments? Issues Choose option Please explain Current water availability and quality parameters at a local level Current water regulatory frameworks and tariffs at a local level Current stakeholder conflicts concerning water resources at a local level Current implications of water on your key commodities/raw materials Relevant, included Relevant, included for some facilities/suppliers Relevant, included for some facilities/suppliers Not relevant, explanation provided A water risk assessment is performed at the local level using Roche SHE Management System (Internal Directive K9) as the overlying document. The issues vary from site to site as does their depth. Production of pharmaceuticals and diagnostics is only possible with adequate amounts of clean water. Almost all processes in pharmaceutical and diagnostic manufacturing involve water as a reagent, solvent or cleaning agent. In addition water is used as an energy carrier in refrigeration and heating installations. Thus the availability of high quality water is critical to us and is therefore included in the assessment. Roche depends on water for the running of its business and supports its efficient use. In drought stricken areas in particular we run our business in a sustainable way. Local water risk assessments and water issues vary from site to site as does their depth. At some of our sites current water regulatory frameworks and tariffs at a local level are an issue. This influences decision making and therefore this issue is relevant. This issue is covered by thoses sites where stakeholder conflicts could ly affect decision making. In particular these are those sites where water quantity and quality is an issue, particularly in times of drought. At sites where water quantity and quality are not yet an issue, it is not covered. We monitor all water issues by listening to our stakeholders and act when and where necessary. Roche depends on water for the running of its business and supports its efficient use. In drought stricken areas in particular, we run our business in a sustainable way. Water risk assessments are performed at the local level and the issues vary from site to site as does their depth. Roche's mitigation plans cover this issue. Roche does not rely on one single supplier for

15 Issues Choose option Please explain Current status of ecosystems and habitats at a local level Current river basin management plans Current access to fully-functioning WASH services for all employees Estimates of future changes in water availability at a local level Estimates of future regulatory changes at a local level Estimates of future stakeholder conflicts at a local level Estimates of future implications of water on your key commodities/raw materials Relevant, included for some facilities/suppliers Relevant, included for some facilities/suppliers Relevant, not yet included Relevant, included Relevant, included for some facilities/suppliers Relevant, included for some facilities/suppliers Not relevant, explanation provided its key commodities/raw materials. If supply is threatened then the supplier would be changed to ensure business continuity. Some of our facilities are located in biodiversity hotspots e.g. our diagnostics site in Brazil has the to on the Atlantic Forest. Our production site at Oceanside, USA has the to on the California Floristic Province. Currently there is no issue surrounding Roche in terms of ecosystems and habitats which affect decision making. We carefully and continuously monitor our water emissions and set targets to keep them low. Some of Roche's sites could be affected by this issue. Some basins, with unstressed water suppliers, are used to supply water to water stressed regions. This action has the to on operations if long term. At sites where WASH is not an issue, this would not be included in the risk assessment e.g. most sites within USA and Europe. However in countries where access to clean water and sanitation could be an issue, Roche is in the process of putting WASH into place. Gaps have been identified and solutions are being sort. We expect to include this issue into the risk analysis within the next two years. A water risk assessment is performed at the local level using Roche SHE Management System (Internal Directive K9) as the overlying document. Production of pure/ionized water and clean steam generation is energy-intensive, making the pharmaceutical sector susceptible to disruption or increased cost of energy supply due to water scarcity. Almost all processes in pharmaceutical and diagnostic manufacturing involve water as a reagent, solvent or cleaning agent. Local water availability is carefully monitored. If availability changes at the local level a new risk assessment is performed or the issue is dealt with in an ad hoc manner. Roche depends on water for the running of its business and supports its efficient use. In drought stricken areas in particular business is run in a sustainable way. Water risk assessments are performed at the local level and the issues vary from site to site. New or more stringent wastewater regulations may increase cost for wastewater treatment and discharge. This could affect decision making. We are monitoring all water issues by listening to our stakeholders and we will act when and where necessary. This issue is included in the risk assessment for some sites. There is an increase in consumer concerns about pharmaceutical contamination in water sources. This could affect decision making in the future. In drought stricken areas in particular there are no stakeholder conflicts at the moment and we do not foresee this to change. However we monitor all water issues by listening to our stakeholders and act when and where necessary. Roche depends on water for the running of its business and supports its efficient use by its suppliers. Water risk assessments are performed at the local level and the issues vary from site to site as does their depth. Roche's mitigation plans cover this issue. Roche does not rely on

16 Issues Choose option Please explain Estimates of future changes in the status of ecosystems and habitats at a local level Scenario analysis of availability of sufficient quantity and quality of water relevant for your operations at a local level Scenario analysis of regulatory and/or tariff changes at a local level Scenario analysis of stakeholder conflicts concerning water resources at a local level Scenario analysis of implications of water on your key commodities/raw materials Scenario analysis of changes in the status of ecosystems and habitats at a local level Relevant, included for some facilities/suppliers Relevant, included Relevant, included for some facilities/suppliers Relevant, included for some facilities/suppliers Not relevant, explanation provided Relevant, included for some facilities/suppliers one single supplier for its key commodities/raw materials. If supply is threatened then the supplier would be changed to ensure business continuity. We do not foresee any water issues which would have implications on key commodities that could affect decision making. Therefore this issue is not relevant. However, we monitor all water issues by listening to our stakeholders and act where necessary. Some of our facilities are located in biodiversity hotspots e.g. our diagnostics site in Brazil has the to on the Atlantic Forest. Our production site at Oceanside, USA has the to on the California Floristic Province. We do not foresee any issue at Roche that could affect decision making in terms of ecosystems and habitats as we carefully and continuously monitor our water emissions and set targets to keep them low. A water risk assessment is performed at the local level using Roche SHE Management System (Internal Directive K9) as the overlying document and includes a scenario analysis. Such scenarios have shown that high quality water is critical to us. Production of pharmaceuticals and diagnostics is only possible with adequate amounts of clean water. Almost all processes in pharmaceutical and diagnostic manufacturing involve water as a reagent, solvent or cleaning agent. In addition water is used as an energy carrier in refrigeration and heating installations. Roche depends on water for the running of its business and supports its efficient use. In drought stricken areas in particular business is run in a sustainable way. Scenario analyses are included in a local water risk assessments. Our analyses suggest that new or more stringent wastewater regulations may increase cost for wastewater treatment and discharge. This could affect decision making. We continue monitor all water issues by listening to our stakeholders and act when and where necessary. Scenario analyses are included in a water risk assessment and are performed at the local level. Rising consumer concerns about pharmaceutical contamination in water sources could affect decision making. In drought stricken areas there are no stakeholder conflicts as the basin where Roche draws its water is not in danger in running dry through our actions and we do not expect this to change. We monitor all water issues by listening to our stakeholders and act when and where necessary. Roche depends on water for the running of its business and supports its efficient use. A scenario analysis is included in water risk assessments and are performed at the local level. Our analyses do not foresee any water issues which would have implications on key commodities that could affect decision making. Therefore this issue is not relevant. However, we monitor all water issues by listening to our stakeholders and act where necessary. A scenario analysis is included in water risk assessments and performed at the local level. Some of our facilities are located in biodiversity hotspots e.g. our production site at Oceanside, USA has the to on the California Floristic Province. Our analyses do not

17 Issues Choose option Please explain Other Not relevant, explanation provided foresee any issue at Roche that could affect decision making in terms of ecosystems and habitats. We carefully and continuously monitor our water emissions and set targets to keep them low. No other issues identified. W2.7 Which of the following stakeholders are always factored into your organization's water risk assessments? Stakeholder Choose option Please explain Customers Employees Investors Local communities Relevant, included Relevant, included Relevant, included Relevant, included for some facilities/suppliers Water risk assessments are performed at the local level. Customers are always factored in local risk assessments particularly in areas of the world where water is surrounded by issues. In the event of water shortage or flooding Roche must assure business continuity in the form of production and assess to medicines. Water risk assessments are performed at the local level. Employees are material to business continuity and in many cases live within the local community. They require sufficient amounts of clean water at work and at home. In areas where water is more material than others e.g. our sites in California and Shanghai, this stakeholder group would be included in the risk assessment. Sustainability issues, including water, which are of interest to our investors are included in a risk / materiality analysis. Companies which use water efficiently and are able to demonstrate growth, paralleled by a decrease in water consumption, will gain the necessary reputation to gain investor interest. This is particularly important in areas of the world where water is surrounded by issues and Roche has its operations e.g our sites in California. Here water is material and a failure to effectively manage local water resources could have reputational s, ly gaining the attention of our investors. In drought stricken areas, our business is run in a sustainable way for both business and the community. The basins where Roche draws its water are not in danger in running dry through our actions. Here water is material and a failure to effectively manage water resources could have reputational s. Local communities include the patients that we supply. Thus, the community would be included in the assessment. Currently there are no conflicts which would affect decision making. However we monitor all

18 Stakeholder Choose option Please explain NGOs Other water users at a local level Regulators management authorities Statutory special interest groups at a local level Suppliers Water utilities/suppliers at a local level Relevant, included for some facilities/suppliers Relevant, included for some facilities/suppliers Relevant, included Relevant, included for some facilities/suppliers Relevant, included for some facilities/suppliers Relevant, included for some facilities/suppliers Relevant, included for some facilities/suppliers water issues by listening to this stakeholder group and act when and where necessary. Water risk assessments are performed at the local level. In areas of the world where there are water related concerns and Roche has its operations, ALL local uses of water, i.e. users who share the same basin with Roche would be taken into account. Here water is material and conflicts could have reputational s. The risk assessments are performed when the previous one expires or when a situation changes e.g. water levels decreases threatening the community and/or business continuity. In areas of the world where there are water related concerns and Roche has its operations, ALL local uses of water, i.e. users who share the same basin with Roche would be taken into account. Here water is material and conflicts could have reputational s. The risk assessments are performed when the previous one expires or when a situation changes e.g. water levels decreases threatening the community and/or business continuity. Water risk assessments are performed at the local level. Such issues are generally monitored by Government Affairs Department who have regular contact to policy makers and regulators. Information on all topics. including water, is fed back into the company and taken into account in the materiality process. This is particularly important in areas of the world where there is heightened concern around water issues and Roche has its operations e.g. our sites in California. Here water is material and conflicts could have reputational s. In those parts of the world where water is surrounded by issues and Roche has its operations, ALL local uses of water, i.e. users who share the same basin with Roche would be taken into account during the water risk assessment. Here water is material and conflicts could have reputational s. The risk assessments are performed when the previous one expires or when a situation changes e.g. water levels decreases threatening the community and/or business continuity. In those parts of the world where water is surrounded by issues and Roche has its operations, ALL local uses of water, i.e. users who share the same basin with Roche would be taken into account during the water risk assessment. Here water is material and conflicts could have reputational s. The risk assessments are performed when the previous one expires or when a situation changes e.g. water levels decreases threatening the community and/or business continuity. Water risk assessments are performed at the local level. In areas of the world where there are water related concerns ALL local uses of water, i.e. users who share the same basin with Roche would be taken into account. Roche must assure business continuity and therefore suppliers and service providers, who are situated in drought stricken or flood prone areas, are monitored/assessed closely i.e. are factored in the risk assessment. In the event of a supply disruption via a decrease in water quantity or flooding, Roche would change to another preferred supplier in order to assure business continuity. In those parts of the world where there are water related concerns and Roche has its operations, ALL local uses of water, i.e. users who share the same basin with Roche would be taken into account during the water risk assessment. Here water is material and conflicts could have reputational s. The risk assessments are performed when the previous one expires or when a situation changes e.g. water levels decreases

19 Stakeholder Choose option Please explain Other Not relevant, explanation provided threatening the community and/or business continuity. There are no other stakeholders W2.8 Please choose the option that best explains why your organisation does not undertake a water-related risk assessment Primary reason Please explain Further Information Further information to W2.3: Methods used to assess water risks also include Roche SHE Management System (Internal Directive K9). The actual analysis of whether a situation really is a risk and whether measures are necessary, we perform according to our internal processes described in K9. Further information to 2.4: Water risk analyses at Roche are performed at the local level and not centrally. The local sites determine which contextual issues form a part of the water risk assessment not head office. Only the local sites are aware of any water issues. The depth of the analysis as well as the scenarios varies from site to site. Sites where there is currently sufficient amounts of water will have a much less detailed water risk analysis than those sites where water is more material. Even at those sites that are located in areas where water is designated as extremely scarce we do not threaten the local community or our business as our water usage is minimal. Future issues surrounding water will develop slowly and Roche monitors this development by listening to its stakeholders. Any changes in the issues surrounding water would be dealt with in either a new risk analysis or in an ad hoc manner. Either way, business continuity is guaranteed and Roche would not compete for water with the surrounding communities. Module: Implications Page: W3. Water s W3.1

20 Is your organization exposed to water risks, either current and/or future, that could generate a substantive change in your business, operations, revenue or expenditure? Yes, direct operations and supply chain W3.2 Please provide details as to how your organization defines substantive change in your business, operations, revenue or expenditure from water risk As a pharmaceutical company we are dependent on water and our contribution to mitigating water availability influences the way we conduct our business. 4 risks have the to on Roche's business at direct operations and the chain supply. 1. Regulatory risks - Physical and reputational pressures affecting water availability & wastewater discharge can result in more stringent water policies. Water scarcity, coupled with increased concern from local communities about water withdrawals, will put pressure on authorities and policymakers to consider water reallocations, regulations, and development of water markets that cap usage, suspend permits to draw water and lead to stricter water quality standards. 2. Conflict of interest at the community level - at the reputational level the local community could suggest that the local Roche site withdraws too much water from source and thereby limiting the amount of water available for the local area. This could be a particular risk in times of drought. 3. Physical s e.g. Water restrictions - Limits on the volume of water Roche uses in its daily business could ly affect some local production operations, raw material supply and the intermediate supply chain. In some cases water scarcity would affect power generation, putting some sites at risk. 4. Pharmaceutical in the Environment - Roche considers this topic as material and takes every step to minimise the release of pharmaceuticals into the environment at all stages. Release of chemicals / pharmaceuticals into the environment has reputational and implications. All 4 scenarios could have reputational and/or implications on our business. They could affect direct operations or the supply chain and therefore business continuity. Through Roche's successful risk management procedures all situations have been identified and mitigation and business plans put into place. In the event of one or more situations ing on a site, the operations would be moved to an area of less risk BEFORE business (sales) is affected by 1 5%. Therefore a substantive change in our business, operations, revenue or expenditure from water risk would be immediately mitigated. This process forms part of the risk assessment and is performed at least every two years. W3.2a

21 Please provide the number of facilities* per river basin exposed to water risks that could generate a substantive change in your business, operations, revenue or expenditure and the proportion of total operations this represents Country Number of facilites Proportion of total operations exposed to risk within river basin (%) Comment Japan Other: GHAASBasin Brazil Other: GHAASBasin United States of America Other: GHAASBasin United States of America Other: Colorado (Ari) Singapore Other: GHAASBasin Mexico Other: Grande de Santiago W3.2b Please provide the proportion of value that could be affected at river basin level associated with the facilities listed in W3.2a Country Financial reporting metric Proportion of chosen metric that could be affected within the river basin Comment Japan Other: GHAASBasin947 % global production capacity 1-5 Brazil Other: GHAASBasin3457 % global production capacity 1-5 United States of America Other: GHAASBasin3736 % global production capacity 1-5 United States of America Other: Colorado (Ari) % global production capacity 1-5 Singapore Other: GHAASBasin1591 % global production capacity 1-5 Mexico Other: Grande de Santiago % global production capacity 1-5

22 W3.2c Please list the inherent water risks that could generate a substantive change in your business, operations, revenue or expenditure, the to your direct operations and the strategies to mitigate them Country of Timefram e Likelihoo d Magnitud e of and Japan Other: GHAASBasin947 Physical- Increase d water scarcity Physical- Increase d water stress Physical- Projected water scarcity Plant/productio n disruption leading to reduced output The annual renewable water supply per person for this basin is currently classified as 'scarcity'. This is projected to continue for at least up to Furthermore, this basin has a stress index of As a pharmaceutica l company Roche does not use large volumes of water. However, the water that we do use forms >6 years Unlikely Low Establish site-specific targets Greater due diligence Increased investment in new technology Water managemen t incentives Establishing the sitespecific targets would not be cost intensive as targets are already in place. It would merely involve strengthenin g the ones we already have. A greater due diligence would form a part of the site-specific target setting. This is estimated to cost Roche s philosophy is a sustainable future and therefore an efficient use of natural resources. Therefore, Roche already has procedures in place which help monitor the water situation and ensure its efficient use. The risks are therefore mitigated before they present themselves. Our is diverse.

23 Country of Timefram e Likelihoo d Magnitud e of and a constituent part of some of our products. Therefore with a decrease in the availability of water there could be a disruption in production and therefore a decrease in output. It is estimated that this could affect the operations for approx. 1 year before a substantive change took effect. Thereafter operations at that site would be ly moved to another site assuring business continuity. The site itself would remain approx. CHF mil. If the involved new technology or water management incentives could increase to CHF 5 mil. First, Roche actively listens to its stakeholders and is, therefore, able to inform itself about the current water quality and quantity situation, particularly in areas where water is a material issue. Secondly, Roche has annually monitored volumes of water withdrawal and consumption since 1992 in the form of key performance indicators. Strengthenin g site specific targets would

24 Country of Timefram e Likelihoo d Magnitud e of and but activities there would be decreased. involve an intensified monitoring of past and present volumes of water withdrawal and consumption combined with an increased due diligence. Thirdly, Roche performs regular risk analyses. This procedure makes us aware of the business risks associated with a decrease in water quality and/or quantity. Fourthly, we

25 Country of Timefram e Likelihoo d Magnitud e of and regularly invest in new technology which assures the efficient use of water. Via these procedures, Roche continually delivers what is good for business and its stakeholders. In the event that water quantity and/or quality continually decrease, Roche would be aware of it via these long standing procedures. Roche s efficient use of water and recycling of water are typical examples of

26 Country of Timefram e Likelihoo d Magnitud e of and how Roche ensures business success and a sustainable future for its stakeholders. If necessary we could strengthen our targets and implement them within 1 year. The would be very effective in that they would be based on business and stakeholder needs being aggressive but feasible thereby preventing and operational s. Roche s activities within

27 Country of Timefram e Likelihoo d Magnitud e of and Brazil Other: GHAASBasin345 7 Physical- Increase d water scarcity Physical- Increase d water stress Physical- Projected water scarcity Plant/productio n disruption leading to reduced output The annual renewable water supply per person for this basin is currently classified as 'extreme scarcity'. This is projected to continue for at least up to As a pharmaceutica l company >6 years Unlikely Low Establish site-specific targets Greater due diligence Increased investment in new technology Water managemen t incentives Establishing the sitespecific targets would not be cost intensive as targets are already in place. It would merely involve strengthenin g the ones environmenta l protection, including efficient usage of natural resources cost approx. CHF million per year. Investments tend to be in the range of approx. CHF million per year. Roche s philosophy is a sustainable future and therefore an efficient use of natural resources. Therefore, Roche already has procedures in place which help monitor the water

28 Country of Timefram e Likelihoo d Magnitud e of and Roche does not use large volumes of water. However, the water that we do use forms a constituent part of some of our products. Therefore with a decrease in the availability of water there could be a disruption in production and therefore a decrease in output. It is estimated that this could affect the operations for approx. 1 year before a substantive change took effect. Thereafter operations at that site would ly be we already have. A greater due diligence would form a part of the site-specific target setting. This is estimated to cost approx. CHF mil. If the involved new technology or water management incentives could increase to CHF 5 mil. situation and ensure its efficient use. The risks are therefore mitigated before they present themselves. Our is diverse. First, Roche actively listens to its stakeholders and is, therefore, able to inform itself about the current water quality and quantity situation, particularly in areas where water is a material issue. Secondly, Roche has annually monitored volumes of water

29 Country of Timefram e Likelihoo d Magnitud e of and moved to another site assuring business continuity. The site itself would remain but activities there would be actively decreased. withdrawal and consumption since 1992 in the form of key performance indicators. Strengthenin g site specific targets would involve an intensified monitoring of past and present volumes of water withdrawal and consumption combined with an increased due diligence. Thirdly, Roche performs regular risk analyses. This procedure makes us

30 Country of Timefram e Likelihoo d Magnitud e of and aware of the business risks associated with a decrease in water quality and/or quantity. Fourthly, we regularly invest in new technology which assures the efficient use of water. Via these procedures, Roche continually delivers what is good for business and its stakeholders. In the event that water quantity and/or quality continually decrease, Roche would

31 Country of Timefram e Likelihoo d Magnitud e of and be aware of it via these long standing procedures. Roche s efficient use of water and recycling of water are typical examples of how Roche ensures business success and a sustainable future for its stakeholders. If necessary we could strengthen our targets and implement them within 1 year. The would be very effective in that they would be based on business and stakeholder

32 Country of Timefram e Likelihoo d Magnitud e of and United States of America Other: GHAASBasin373 6 Physical- Increase d water scarcity Plant/productio n disruption leading to reduced output The annual renewable water supply per person for >6 years Unlikely Low Establish site-specific targets Greater due Establishing the sitespecific targets needs being aggressive but feasible thereby preventing and operational s. Roche s activities within environmenta l protection, including efficient usage of natural resources cost approx. CHF million per year. Investments tend to be in the range of approx. CHF million per year. Roche s philosophy is a sustainable future and

33 Country of Timefram e Likelihoo d Magnitud e of and Physical- Increase d water stress Physical- Projected water scarcity this basin is currently classified as 'extreme scarcity'. This is projected to continue for at least up to Furthermore, this basin has a stress index of >1.0. As a pharmaceutica l company Roche does not use large volumes of water. However, the water that we do use forms a constituent part of some of our products. Therefore with a decrease in the availability of water there could be a disruption in production and therefore diligence Increased investment in new technology Water managemen t incentives would not be cost intensive as targets are already in place. It would merely involve strengthenin g the ones we already have. A greater due diligence would form a part of the site-specific target setting. This is estimated to cost approx. CHF mil. If the involved new technology or water management incentives could increase to CHF 5 mil. therefore an efficient use of natural resources. Therefore, Roche already has procedures in place which help monitor the water situation and ensure its efficient use. The risks are therefore mitigated before they present themselves. Our is diverse. First, Roche actively listens to its stakeholders and is, therefore, able to inform itself about the current water quality and quantity situation,

34 Country of Timefram e Likelihoo d Magnitud e of and a decrease in output. It is estimated that this could affect the operations for approx. 1 year before a substantive change took effect. Thereafter operations at that site would ly be moved to another site assuring business continuity. The site itself would remain but activities there would be actively decreased. particularly in areas where water is a material issue. Secondly, Roche has annually monitored volumes of water withdrawal and consumption since 1992 in the form of key performance indicators. Strengthenin g site specific targets would involve an intensified monitoring of past and present volumes of water withdrawal and consumption combined with an

35 Country of Timefram e Likelihoo d Magnitud e of and increased due diligence. Thirdly, Roche performs regular risk analyses. This procedure makes us aware of the business risks associated with a decrease in water quality and/or quantity. Fourthly, we regularly invest in new technology which assures the efficient use of water. Via these procedures, Roche continually delivers what

36 Country of Timefram e Likelihoo d Magnitud e of and is good for business and its stakeholders. In the event that water quantity and/or quality continually decrease, Roche would be aware of it via these long standing procedures. Roche s efficient use of water and recycling of water are typical examples of how Roche ensures business success and a sustainable future for its stakeholders. If necessary we could strengthen our targets and

37 Country of Timefram e Likelihoo d Magnitud e of and implement them within 1 year. The would be very effective in that they would be based on business and stakeholder needs being aggressive but feasible thereby preventing and operational s. Roche s activities within environmenta l protection, including efficient usage of natural resources cost approx. CHF million per year. Investments

38 Country of Timefram e Likelihoo d Magnitud e of and United States of America Other: Colorado (Ari) Physical- Increase d water scarcity Physical- Increase d water stress Physical- Projected water scarcity Plant/productio n disruption leading to reduced output This basin has a stress index of >1.0. As a pharmaceutica l company Roche does not use large volumes of water. However, the water that we do use forms a constituent part of some of our products. Therefore with a decrease in the availability of water there could be a disruption in production and therefore a decrease in output. It is estimated that >6 years Unlikely Low Establish site-specific targets Greater due diligence Increased investment in new technology Water managemen t incentives Establishing the sitespecific targets would not be cost intensive as targets are already in place. It would merely involve strengthenin g the ones we already have. A greater due diligence would form a part of the site-specific target setting. This is estimated to cost approx. CHF tend to be in the range of approx. CHF million per year. Roche s philosophy is a sustainable future and therefore an efficient use of natural resources. Therefore, Roche already has procedures in place which help monitor the water situation and ensure its efficient use. The risks are therefore mitigated before they present themselves. Our is diverse. First, Roche

39 Country of Timefram e Likelihoo d Magnitud e of and this could affect the operations for approx. 1 year before a substantive change took effect. Thereafter operations at that site would ly be moved to another site assuring business continuity. The site itself would remain but activities there would be actively decreased mil. If the involved new technology or water management incentives could increase to CHF 5 mil. actively listens to its stakeholders and is, therefore, able to inform itself about the current water quality and quantity situation, particularly in areas where water is a material issue. Secondly, Roche has annually monitored volumes of water withdrawal and consumption since 1992 in the form of key performance indicators. Strengthenin g site specific targets would involve an

40 Country of Timefram e Likelihoo d Magnitud e of and intensified monitoring of past and present volumes of water withdrawal and consumption combined with an increased due diligence. Thirdly, Roche performs regular risk analyses. This procedure makes us aware of the business risks associated with a decrease in water quality and/or quantity. Fourthly, we regularly

41 Country of Timefram e Likelihoo d Magnitud e of and invest in new technology which assures the efficient use of water. Via these procedures, Roche continually delivers what is good for business and its stakeholders. In the event that water quantity and/or quality continually decrease, Roche would be aware of it via these long standing procedures. Roche s efficient use of water and recycling of water are typical examples of how Roche

42 Country of Timefram e Likelihoo d Magnitud e of and ensures business success and a sustainable future for its stakeholders. If necessary we could strengthen our targets and implement them within 1 year. The would be very effective in that they would be based on business and stakeholder needs being aggressive but feasible thereby preventing and operational s. Roche s activities within environmenta

43 Country of Timefram e Likelihoo d Magnitud e of and Singapor e Other: GHAASBasin159 1 Physical- Increase d water scarcity Physical- Increase d water stress Physical- Projected water scarcity Plant/productio n disruption leading to reduced output The annual renewable water supply per person for this basin is currently classified as 'stressed'. This is projected to worsen to 'scarcity' by As a pharmaceutica l company Roche does >6 years Unlikely Low Establish site-specific targets Greater due diligence Increased investment in new technology Water managemen t incentives Establishing the sitespecific targets would not be cost intensive as targets are already in place. It would merely involve strengthenin g the ones we already l protection, including efficient usage of natural resources cost approx. CHF million per year. Investments tend to be in the range of approx. CHF million per year. Roche s philosophy is a sustainable future and therefore an efficient use of natural resources. Therefore, Roche already has procedures in place which help monitor the water situation and

44 Country of Timefram e Likelihoo d Magnitud e of and not use large volumes of water. However, the water that we do use forms a constituent part of some of our products. Therefore with a decrease in the availability of water there could be a disruption in production and therefore a decrease in output. It is estimated that this could affect the operations for approx. 1 year before a substantive change took effect. Thereafter operations at that site would ly be moved to have. A greater due diligence would form a part of the site-specific target setting. This is estimated to cost approx. CHF mil. If the involved new technology or water management incentives could increase to CHF 5 mil. ensure its efficient use. The risks are therefore mitigated before they present themselves. Our is diverse. First, Roche actively listens to its stakeholders and is, therefore, able to inform itself about the current water quality and quantity situation, particularly in areas where water is a material issue. Secondly, Roche has annually monitored volumes of water withdrawal

45 Country of Timefram e Likelihoo d Magnitud e of and another site assuring business continuity. The site itself would remain but activities there would be actively decreased. and consumption since 1992 in the form of key performance indicators. Strengthenin g site specific targets would involve an intensified monitoring of past and present volumes of water withdrawal and consumption combined with an increased due diligence. Thirdly, Roche performs regular risk analyses. This procedure makes us aware of the

46 Country of Timefram e Likelihoo d Magnitud e of and business risks associated with a decrease in water quality and/or quantity. Fourthly, we regularly invest in new technology which assures the efficient use of water. Via these procedures, Roche continually delivers what is good for business and its stakeholders. In the event that water quantity and/or quality continually decrease, Roche would be aware of it

47 Country of Timefram e Likelihoo d Magnitud e of and via these long standing procedures. Roche s efficient use of water and recycling of water are typical examples of how Roche ensures business success and a sustainable future for its stakeholders. If necessary we could strengthen our targets and implement them within 1 year. The would be very effective in that they would be based on business and stakeholder needs being

48 Country of Timefram e Likelihoo d Magnitud e of and Mexico Other: Grande de Santiago Physical- Increase d water scarcity Physical- Plant/productio n disruption leading to reduced output The annual renewable water supply per person for this basin is >6 years Unlikely Low Establish site-specific targets Greater due diligence Establishing the sitespecific targets would not be aggressive but feasible thereby preventing and operational s. Roche s activities within environmenta l protection, including efficient usage of natural resources cost approx. CHF million per year. Investments tend to be in the range of approx. CHF million per year. Roche s philosophy is a sustainable future and therefore an

49 Country of Timefram e Likelihoo d Magnitud e of and Increase d water stress Physical- Projected water scarcity currently classified as 'scarcity'. This is projected to continue for at least up to As a pharmaceutica l company Roche does not use large volumes of water. However, the water that we do use forms a constituent part of some of our products. Therefore with a decrease in the availability of water there could be a disruption in production and therefore a decrease in output. It is estimated that this could affect the operations Increased investment in new technology Water managemen t incentives cost intensive as targets are already in place. It would merely involve strengthenin g the ones we already have. A greater due diligence would form a part of the site-specific target setting. This is estimated to cost approx. CHF mil. If the involved new technology or water management incentives could increase to CHF 5 mil. efficient use of natural resources. Therefore, Roche already has procedures in place which help monitor the water situation and ensure its efficient use. The risks are therefore mitigated before they present themselves. Our is diverse. First, Roche actively listens to its stakeholders and is, therefore, able to inform itself about the current water quality and quantity situation, particularly in

50 Country of Timefram e Likelihoo d Magnitud e of and for approx. 1 year before a substantive change took effect. Thereafter operations at that site would ly be moved to another site assuring business continuity. The site itself would remain but activities there would be actively decreased. areas where water is a material issue. Secondly, Roche has annually monitored volumes of water withdrawal and consumption since 1992 in the form of key performance indicators. Strengthenin g site specific targets would involve an intensified monitoring of past and present volumes of water withdrawal and consumption combined with an increased

51 Country of Timefram e Likelihoo d Magnitud e of and due diligence. Thirdly, Roche performs regular risk analyses. This procedure makes us aware of the business risks associated with a decrease in water quality and/or quantity. Fourthly, we regularly invest in new technology which assures the efficient use of water. Via these procedures, Roche continually delivers what is good for

52 Country of Timefram e Likelihoo d Magnitud e of and business and its stakeholders. In the event that water quantity and/or quality continually decrease, Roche would be aware of it via these long standing procedures. Roche s efficient use of water and recycling of water are typical examples of how Roche ensures business success and a sustainable future for its stakeholders. If necessary we could strengthen our targets and implement

53 Country of Timefram e Likelihoo d Magnitud e of and them within 1 year. The would be very effective in that they would be based on business and stakeholder needs being aggressive but feasible thereby preventing and operational s. Roche s activities within environmenta l protection, including efficient usage of natural resources cost approx. CHF million per year. Investments tend to be in

54 Country of Timefram e Likelihoo d Magnitud e of and the range of approx. CHF million per year. W3.2d Please list the inherent water risks that could generate a substantive change in your business operations, revenue or expenditure, the to your supply chain and the strategies to mitigate them Country of Timeframe Likelihood Magnitude of and United Kingdom Other: GHAASBasin4546 Physical- Increased water scarcity Physical- Increased water stress Physical- Projected Supply chain disruption The annual renewable water supply per person for this basin is currently classified as 'extreme scarcity'. This is >6 years Unlikely Low Supplier diversification The cost of the is considered low and considered to be approximately CHF 0.5 million. Roche does not rely on one supplier for the delivery of products needed to continue its day-to-day business of delivering high

55 Country of Timeframe Likelihood Magnitude of and water scarcity projected to continue for at least up to Limited access to clean water within the supply chain has the to limit or delay delivery of products Roche requires to continue business. Furthermore, Roche may need to pay more due to limited volumes of water within the chain supply. This on Roche could result in Roche increasing the price of its products. quality medicines to those people who need them. In order to guarantee business continuity, Roche has a diverse list of suppliers delivering the same product. Therefore if there is a delivery or manufacturing or even price issue, Roche can continue its business by taking delivery of another supplier. These activities cost the affected site approx. CHF 0.5 to 1 million CHF per year and are continually in use therefore the implementation of the

56 Country of Timeframe Likelihood Magnitude of and France Seine Physical- Increased water scarcity Physical- Increased water stress Physical- Projected water scarcity Supply chain disruption >6 years Unlikely Low Supplier diversification The cost of the is considered low and considered to be approximately CHF 0.5 million. is expected to range from 24 hours to seven days. The is extremely effective as it is in continual use and therefore prevents and operational s. Roche does not rely on one supplier for the delivery of products needed to continue its day-to-day business of delivering high quality medicines to those people who need them. In order to guarantee business continuity, Roche has a

57 Country of Timeframe Likelihood Magnitude of and diverse list of suppliers delivering the same product. Therefore if there is a delivery or manufacturing or even price issue, Roche can continue its business by taking delivery of another supplier. These activities cost the affected site approx. CHF 0.5 to 1 million CHF per year and are continually in use therefore the implementation of the is expected to range from 24 hours to seven days. The is extremely effective as it is in continual

58 Country of Timeframe Likelihood Magnitude of and United States of America Other: GHAASBasin1486 Physical- Increased water scarcity Physical- Increased water stress Physical- Projected water scarcity Supply chain disruption >6 years Unlikely Low The cost of the is considered low and considered to be approximately CHF 0.5 million. use and therefore prevents and operational s. Roche does not rely on one supplier for the delivery of products needed to continue its day-to-day business of delivering high quality medicines to those people who need them. In order to guarantee business continuity, Roche has a diverse list of suppliers delivering the same product. Therefore if there is a delivery or manufacturing or even price

59 Country of Timeframe Likelihood Magnitude of and issue, Roche can continue its business by taking delivery of another supplier. These activities cost the affected site approx. CHF 0.5 to 1 million CHF per year and are continually in use therefore the implementation of the is expected to range from 24 hours to seven days. The is extremely effective as it is in continual use and therefore prevents and operational s.

60 W3.2e Please choose the option that best explains why you do not consider your organization to be exposed to water risks in your direct operations that could generate a substantive change in your business, operations, revenue or expenditure Primary reason Please explain W3.2f Please choose the option that best explains why you do not consider your organization to be exposed to water risks in your supply chain that could generate a substantive change in your business, operations, revenue or expenditure Primary reason Please explain W3.2g Please choose the option that best explains why you do not know if your organization is exposed to water risks that could generate a substantive change in your business operations, revenue or expenditure and discuss any future plans you have to assess this Primary reason Future plans

61 Further Information Page: W4. Water Opportunities W4.1 Does water present strategic, operational or market opportunities that substantively benefit/have the to benefit your organization? No W4.1a Please describe the opportunities water presents to your organization and your strategies to realize them Country or region Opportunity Strategy to realize opportunity Estimated timeframe Please explain W4.1b Please choose the option that best explains why water does not present your organization with any opportunities that have the to provide substantive benefit Primary reason Please explain No opportunities identified We have thoroughly analyzed Roche's possible opportunities with respect to water quantity and quality and we do not expect any such to have a considerable (at least 1% of sales) on Roche's operations, revenue or expenditure. Opportunities through water quantity

62 Primary reason Please explain and quality are not relevant. Other pharmaceutical companies focus on indications that could be affected by rainfall e.g malaria. Roche produces mainly anti-cancer medicines e.g. Avastin and Herceptin. Changes in water quantity and quality do not affect the epidemiology of the cancer we treat. Furthermore, water as a constituent of our products is low and therefore Roche's dependence on water is marginal. Thus, we do not foresee a for water to provide substantive benefit to our business. We have considered international agreements, pollution limits, emission reporting obligations, product efficiency regulations and standards, water regulations, product labelling regulations and standards, voluntary agreements and general environmental regulations. As the savings are considered small and therefore Roche does not consider any of the water s to offer any viable opportunity. Opportunities have been analyzed in all countries and continents where Roche operates, while in-depth evaluations have been performed particularly where water issues are common and form an important part of business life e.g. Europe and United States of America. Opportunities have been considered for the next 10 years. W4.1c Please choose the option that best explains why you do not know if water presents your organization with any opportunities that have the to provide substantive benefit Primary reason Please explain Further Information Module: Accounting Page: W5. Facility Level Water Accounting (I) W5.1 Water withdrawals: for the reporting year, please complete the table below with water accounting data for all facilities included in your answer to W3.2a

63 Facility reference number Country Facility name Total water withdrawals (megaliters/year) at this facility How does the total water withdrawals at this facility compare to the last reporting year? Please explain the change if substantive Facility 1 Facility 2 Facility 3 Facility 4 Facility 5 Facility 6 Japan Brazil United States of America United States of America Singapore Mexico Other: GHAASBasin947 Other: GHAASBasin3457 Other: GHAASBasin3736 Chugai Tokyo About the same Jacarepaguá About the same Oceanside About the same Other: Colorado (Ari) Tucson About the same Other: GHAASBasin1591 Other: Grande de Santiago Singapore Tech Ops About the same Toluca About the same 9.7% lower compared to No Change 10.1% lower compared to No Change 10.5% lower compared to No Change 10.2% lower compared to No Change 2.01% lower compared to No Change 1.95% lower compared to No Change Further Information Further information to 5.1: The following definitions were used for the column 'How does the total water withdrawals at this facility compare to the last reporting period?': % = Much higher, 34-66% = higher, % About the same, % = lower, % = Much lower. Page: W5. Facility Level Water Accounting (II) W5.1a Water withdrawals: for the reporting year, please provide withdrawal data, in megaliters per year, for the water sources used for all facilities reported in W5.1

64 Facility reference number Fresh surface water Brackish surface water/seawater Rainwater Groundwater (renewable) Groundwater (nonrenewable) Produced/process water Municipal water Wastewater from another organization Comment Facility Facility Facility Facility Facility Facility W5.2 Water discharge: for the reporting year, please complete the table below with water accounting data for all facilities included in your answer to W3.2a Facility reference number Total water discharged (megaliters/year) at this facility How does the total water discharged at this facility compare to the last reporting year? Please explain the change if substantive Facility About the same 22.3% lower compared to 2013 No Change Facility About the same 9.1% lower compared to 2013 No Change Facility About the same 4% lower compared to 2013 No Change Facility This is our first year of measurement No data available in 2013 Facility About the same 20.1% lower compared to 2013 No Change Facility About the same 10.1% lower compared to 2013 No Change W5.2a

65 Water discharge: for the reporting year, please provide water discharge data, in megaliters per year, by destination for all facilities reported in W5.2 Facility reference number Fresh surface water Municipal Treatment Plant Seawater Groundwater Comment Facility Facility Facility Facility Facility Facility megaliters discharged to third party megaliters discharged to third party. W5.3 Water consumption: for the reporting year, please provide water consumption data for all facilities reported in W3.2a Facility reference number Consumption (megaliters/year) How does this compare to the last reporting year? Please explain the change if substantive Facility Much higher 189.4% higher compared to In 2013 the wrong volume was reported. Facility About the same 17.3% lower compared to 2013 No Change Facility Much higher 333% higher compared to In 2013 the wrong volume was reported. Facility Much lower 77.1% lower compared to 2013 Decrease due to commercial operations relocating to Indianapolis, Indiana. Facility Higher 37.8% higher compared to 2013 Increase probably due to an increase

66 Facility reference number Consumption (megaliters/year) How does this compare to the last reporting year? Please explain the change if substantive in number of employees in Facility About the same 2.1% higher compared to 2013 No Change W5.4 For all facilities reported in W3.2a what proportion of their water accounting data has been externally verified? Water aspect % verification What standard and methodology was used? Water withdrawals- total volumes Water withdrawals- volume by sources Water discharges- total volumes Water discharges- volume by destination Standard = ISAE 3000 The verifiers visit sites (random sample which changes every year) and check their reporting procedures in environmental aspects, including water. The names of the sites appear in the Independent Assurance Report. The verifiers assure the sites have a system in place assuring an accurate and reproducible reporting of their key figures. The findings are reported to Group SHE with recommendations. Except for Japan all sites have been visited at least once in the last 7 years. Standard = ISAE 3000 The verifiers visit sites (random sample which changes every year) and check their reporting procedures in environmental aspects, including water. The names of the sites appear in the Independent Assurance Report. The verifiers assure the sites have a system in place assuring an accurate and reproducible reporting of their key figures. The findings are reported to Group SHE with recommendations. Except for Japan all sites have been visited at least once in the last 7 years. Standard = ISAE 3000 The verifiers visit sites (random sample which changes every year) and check their reporting procedures in environmental aspects, including water. The names of the sites appear in the Independent Assurance Report. The verifiers assure the sites have a system in place assuring an accurate and reproducible reporting of their key figures. The findings are reported to Group SHE with recommendations. Except for Japan all sites have been visited at least once in the last 7 years. Standard = ISAE 3000 The verifiers visit sites (random sample which changes every year) and check their reporting procedures in environmental aspects, including water. The names of the sites appear in the Independent Assurance Report. The verifiers assure the sites have a system in place assuring an accurate and reproducible reporting of their key figures. The findings are reported to Group SHE with recommendations. Except for Japan all sites have been visited at least once in the last 7 years.

67 Water aspect % verification What standard and methodology was used? Water discharges- volume by treatment method Water discharge quality data- quality by standard effluent parameters Water consumption- total volume Standard = ISAE 3000 The verifiers visit sites (random sample which changes every year) and check their reporting procedures in environmental aspects, including water. The names of the sites appear in the Independent Assurance Report. The verifiers assure the sites have a system in place assuring an accurate and reproducible reporting of their key figures. The findings are reported to Group SHE with recommendations. Except for Japan all sites have been visited at least once in the last 7 years. Standard = ISAE 3000 The verifiers visit sites (random sample which changes every year) and check their reporting procedures in environmental aspects, including water. The names of the sites appear in the Independent Assurance Report. The verifiers assure the sites have a system in place assuring an accurate and reproducible reporting of their key figures. The findings are reported to Group SHE with recommendations. Except for Japan all sites have been visited at least once in the last 7 years. Standard = ISAE 3000 The verifiers visit sites (random sample which changes every year) and check their reporting procedures in environmental aspects, including water. The names of the sites appear in the Independent Assurance Report. The verifiers assure the sites have a system in place assuring an accurate and reproducible reporting of their key figures. The findings are reported to Group SHE with recommendations. Except for Japan all sites have been visited at least once in the last 7 years. Further Information Further information to 5.2 and 5.3: The following definitions were used for the column 'How does the total water withdrawals at this facility compare to the last reporting period?': % = Much higher, 34-66% = higher, % About the same, % = lower, % = Much lower. Module: Page: W6. Governance and Strategy W6.1 Who has the highest level of direct responsibility for water within your organization and how frequently are they briefed?

68 Highest level of direct responsibility for water issues Frequency of briefings on water issues Comment Individual/Sub-set of the Board or other committee appointed by the Board Scheduled-annual W6.2 Is water management integrated into your business? Yes W6.2a Please choose the option(s) below that best explain how water has positively influenced your business Influence of water on business Please explain Introduction of water management KPIs Roche does not use high volumes of water but its quality and quantity determines how we do our business. Roche's policy is to use all resources, including water, efficiently. Particularly in drought stricken areas we run our business in a sustainable way. Since 1992 Roche has been collecting data concerning water use. On an annual basis Roche sites around the world submit data on all KPI incl. water usage. With this data water can be monitored at both the local and global level. This enables us to act where and when necessary to ensure business continuity without negatively ing on the local water basin and hence community. W6.2b

69 Please choose the option(s) below that best explains how water has negatively influenced your business Influence of water on business Please explain No measurable influence We have not identified specific constraints on our business growth. Therefore we are able to locate our business operations anywhere in the world where we think that the local community will best profit and without the threat that we will negatively on the local water supply and hence local community. W6.2c Please choose the option that best explains why your organization does not integrate water management into its business and discuss any future plans to do so Primary reason Please explain W6.3 Does your organization have a water policy that sets out clear goals and guidelines for action? Yes W6.3a

70 Please select the content that best describes your water policy (tick all that apply) Content Please explain why this content is included Publicly available Company-wide Performance standards for direct operations Performance standards for supplier, procurement and contracting best practice Incorporated within group environmental, sustainabiilty or EHS policy Water forms a vital part of Roche's products. Therefore, water helps determine the way we conduct our business. Hence Roche has included water in its 'Guidelines for the Assurance of Safety, Security, Health and Environmental Protection in the Roche Group'. Publically Available: Roche has a commitment to society and the environment. This document is therefore, publically available via the Roche webpage. By being publically available it helps Roche fulfil its commitment to be transparent. Roche openly informs all its stakeholders on its mission and the issues that surround it and how it mitigates environmental issues such as water. Company Wide: Roche has operations around the world. All affiliates must abide by the same set of principles, standards and ideologies. The Guidelines for the Assurance of Safety, Security, Health and Environmental Protection sets this out. Performance standards for operations AND suppliers: The document conveys Roche s water policy and expectations to maintain a business continuity program and a sustainable future. The document provides guidelines on controlling water contamination, clean water and how to protect water bodies and groundwater from adverse s. Such examples are described and provide a basis for the affiliates and suppliers to work to. Incorporated into the EHS policy: Water is one part of Roche s sustainability program and therefore the water guidelines are a part of the bigger document. W6.4 How does your organization's water-related capital expenditure (CAPEX) and operating expenditure (OPEX) during the most recent reporting period compare to the previous reporting period? Water CAPEX (+/- % change) Water OPEX (+/- % change) Motivation for these changes Investments and expenses have remained generally the same for 2013 and Further Information

71 Page: W7. Compliance W7.1 Was your organization subject to any penalties, fines and/or enforcement orders for breaches of abstraction licenses, discharge consents or other water and wastewater related regulations in the reporting year? No W7.1a Please describe the penalties, fines and/or enforcement orders for breaches of abstraction licenses, discharge consents or other water and wastewater related regulations and your plans for resolving them Facility name Incident Incident description Frequency of occurrence in reporting year Financial Currency Incident resolution W7.1b What proportion of your total facilities/operations are associated with the incidents listed in W7.1a W7.1c Please indicate the total s of all incidents reported in W7.1a as a proportion of total operating expenditure (OPEX) for the reporting year. Please also provide a comparison of this proportion compared to the previous reporting year

72 Impact as % of OPEX Comparison to last year Further Information Page: W8. Targets and Initiatives W8.1 Do you have any company wide targets (quantitative) or goals (qualitative) related to water? Yes, targets only W8.1a Please complete the following table with information on company wide quantitative targets (ongoing or reached completion during the reporting period) and an indication of progress made Category of target Motivation of target Quantitative unit of measurement Baseline year Target year Proportion of target achieved, % value Absolute reduction of water withdrawals Water stewardship Water-related targets are included in the Group eco-balance (environmental ). It includes, among other parameters, water withdrawal as well as emissions to the water. The 10 year goal is to reduce the total environmental per employee, which includes water % reduction per employee %

73 Category of target Motivation of target Quantitative unit of measurement Baseline year Target year Proportion of target achieved, % value withdrawal, by 15% until 2020 based on 2010 figures. In 2014 we surpassed the target. From 2015, water consumption will have its own target and will be measured as consumption per employee. The target will be a 10% reduction over 5 years from 2016 using 2015 figures as the baseline year. This target is aimed at all employees of the Roche Group. Company Specific: As a company, Roche also encourages local water goals as only locally can water issues be monitored and managed more efficiently. Roche therefore encourages local, site specific targets. This approach is often adopted by those sites in water scarce regions e.g. California where Genentech has set a target to reduce its total water use by 20% by 2020, compared with W8.1b Please describe any company wide qualitative goals (ongoing or reached completion during the reporting period) and your progress in achieving these Goal Motivation of goal Progress W8.1c Please explain why you do not have any water-related targets or goals and discuss any plans to develop these in the future

74 Further Information Module: Linkages/Tradeoff Page: W9. Managing trade-offs between water and other environmental issues W9.1 Has your organization identified any linkages or trade-offs between water and other environmental issues in its value chain? Yes W9.1a Please describe the linkages or trade-offs and the related management policy or action Environmental issues Linkage or tradeoff Policy or action Relationship between energy efficiency projects and water use Trade-off While we find that energy efficiency projects often serve to also reduce our water use, some energy saving technologies may have increase our direct water demand. For example, evaporative cooling has the to deliver significant energy savings but would likely result in an increase in our onsite water use. With that said, if we take into account the water used upstream in the production of fossil fuel derived electricity, we may see a net water saving across the value chain thanks to the energy efficiencies gained through use of this technology. The to re-use internal wastewater sources instead of potable, municipal water may also offset the environmental of increased onsite water demand. Further Information

75 Module: Sign Off Page: Sign Off W10.1 Please provide the following information for the person that has signed off (approved) your CDP water Name Job title Corresponding job category Dr. Christoph Franz Chairman of the Board of Directors Board chairman W10.2 Addressing water risks effectively, in many instances, requires collective action. CDP would like to support you in finding partners that are also working to tackle water challenges in the river basins you report against. Please select if your organization would like CDP to transfer your publicly disclosed risk and s and data from questions W1.4a, W3.2b, W3.2c, W4.1a and W8.1b to the United Nations Global Compact Water Action Hub. No Further Information CDP