PSCI PHARMACEUTICAL SUPPLY CHAIN INITIATIVE The Pharmaceutical Supply Chain Initiative – An Overview Presented by [Add name] [Add role title] [Add company name]

PHARMACEUTICAL SUPPLY CHAIN INITIATIVE PSCI Agenda PSCI Overview Presentation | April Joining forces for a sustainable supply chain 2 What is the PSCI? 3 The PSCI Principles 4 How can you get involved?

PHARMACEUTICAL SUPPLY CHAIN INITIATIVE PSCI Sustainability is expected of us PSCI Overview Presentation | April The global marketplace has created more complex supply chains, with increased social, economic and environmental risks The extent to which we manage our supply chains responsibly is becoming a key measure of our CSR competence Global companies are subject to increased scrutiny by NGOs, and the media in relation to their supply footprint Consumers increasingly expect to buy from companies who "purchase responsibly", respecting the rights of citizens in local communities Our stakeholders' expectations are changing:

PHARMACEUTICAL SUPPLY CHAIN INITIATIVE PSCI Meeting the sustainability challenge PSCI Overview Presentation | April To increase the sustainability of our supply chains, we must understand: What impact our supply chain has in the communities where we buy The social, environmental and economic risks associated with our products and companies What we can do, either independently or in conjunction with our supply chain partners, to reduce or manage these risks cost effectively How we can use our collective influence to improve labor, health & safety, and other rights of workers across the pharmaceutical supply chain

PHARMACEUTICAL SUPPLY CHAIN INITIATIVE PSCI Using our collective influence to drive change PSCI Overview Presentation | April The member companies of the PSCI joined forces to address the issue of responsible supply chain management across the pharmaceutical industry We believe that by sharing knowledge and expertise, the industry-wide PSCI can drive complex, global change more effectively than one organization alone Our ethos? COLLECTIVE INFLUENCE One company can't change the supply chain on its own

PHARMACEUTICAL SUPPLY CHAIN INITIATIVE PSCI Working together for the greater good Since the 1990s, industry groups have formed in a variety of sectors to identify and address the common challenges they face in their supply chains PSCI Overview Presentation | April AUTOMOTIVEELECTRONICSFMCG CROSS-INDUSTRYCHEMICALSJEWELRY

PHARMACEUTICAL SUPPLY CHAIN INITIATIVE PSCI Agenda PSCI Overview Presentation | April Responsible Procurement and the pharmaceutical industry The PSCI The PSCI Principles How can you get involved?

PHARMACEUTICAL SUPPLY CHAIN INITIATIVE PSCI What is the PSCI? An industry body formed by the pharmaceutical sector whose members share a vision for responsible supply chain management, to deliver better social, environmental and economic outcomes in the communities where they buy The Pharmaceutical Supply Chain Initiative PSCI Overview Presentation | April 20148

PHARMACEUTICAL SUPPLY CHAIN INITIATIVE PSCI The PSCI Principles PSCI Overview Presentation | April As a first step, the PSCI created the Pharmaceutical Industry Principles for Responsible Supply Chain Management ("the Principles") These Principles address five areas of responsible business practices and the relevant standards any business operating within the pharmaceutical supply chain is expected to uphold ETHICS HEALTH & SAFETYENVIRONMENT MANAGEMENT SYSTEMS LABOR

PHARMACEUTICAL SUPPLY CHAIN INITIATIVE PSCI The PSCI vision Our vision is that, through the application of the PSCI Principles for ethics, labor, health & safety, environment and management systems, better environmental, social and governance outcomes will result for all those involved in the pharmaceutical supply chain PSCI Overview Presentation | April

PHARMACEUTICAL SUPPLY CHAIN INITIATIVE PSCI We've made great progress… PSCI Overview Presentation | April PSCI Principles Developed the Pharmaceutical Industry Principles for Responsible Supply Chain Management, which outline our expectations for sustainable supply chains in our industry Assessment & Audits Developed and now employ tools to assess supply chain sustainability performance and risk, including the PSCI Self-Assessment Questionnaire and Audit Protocol Capability Building We conduct supplier capability building events, including webinars and conferences

PHARMACEUTICAL SUPPLY CHAIN INITIATIVE PSCI Agenda PSCI Overview Presentation | April Responsible Procurement and the pharmaceutical industry The PSCI The PSCI Principles How can you get involved?

PHARMACEUTICAL SUPPLY CHAIN INITIATIVE PSCI Implementing the PSCI Principles PSCI Overview Presentation | April The PSCI Principles Give broad descriptions of what is expected of pharmaceutical supply chain partners What Implementation Guidance Further clarifies the Principles in each of the five areas Provides a framework for improvement Gives examples of how to meet the PSCI expectations How

PHARMACEUTICAL SUPPLY CHAIN INITIATIVE PSCI PSCI Principles: Ethics PSCI Overview Presentation | April Business integrity and fair competition Identification of concerns Animal welfare Privacy ETHICS

PHARMACEUTICAL SUPPLY CHAIN INITIATIVE PSCI LABOR PSCI Principles: Labor PSCI Overview Presentation | April Freely chosen employment Child labor and young workers Non-discrimination Fair treatment Wages, benefits and working hours Freedom of association

PHARMACEUTICAL SUPPLY CHAIN INITIATIVE PSCI HEALTH & SAFETY PSCI Principles: Health and Safety PSCI Overview Presentation | April Worker protection Process safety Emergency preparedness and response Hazard information

PHARMACEUTICAL SUPPLY CHAIN INITIATIVE PSCI ENVIRONMENT PSCI Principles: Environment PSCI Overview Presentation | April Environmental authorizations Waste and emissions Spills and releases

PHARMACEUTICAL SUPPLY CHAIN INITIATIVE PSCI MANAGEMENT SYSTEMS PSCI Principles: Management Systems PSCI Overview Presentation | April Commitment and accountability Legal and customer requirements Risk management Documentation Training and competency Continual improvement

PHARMACEUTICAL SUPPLY CHAIN INITIATIVE PSCI The PSCI Principles and Guidance PSCI Overview Presentation | April The PSCI Principles and the Guidance Document for implementation draw from the following reference materials and standards: Ethical Trading Initiative EU EMAS ILO Code of Practice in Safety and Health ILO International Labor Standards ISO OECD Guidelines for Multinational Enterprises OHSAS Responsible Care ® SA 8000 United Nations Convention Against Corruption United Nations Global Compact Universal Declaration of Human Rights

PHARMACEUTICAL SUPPLY CHAIN INITIATIVE PSCI Agenda PSCI Overview Presentation | April Responsible Procurement and the pharmaceutical industry The PSCI The PSCI Principles How can you get involved?

PHARMACEUTICAL SUPPLY CHAIN INITIATIVE PSCI What are the benefits of getting involved? 1Common standards applied to suppliers 2Benchmarking and sharing of best practices with other pharma companies, and other sectors 3Be recognized as a supporter and advocate of Responsible Supply Chain Management 4Suppliers gain a more in-depth understanding of customers' expectations for responsible business practices and raise their profile as a high-performing and sustainable supplier for current customers and future prospects 5Suppliers have the opportunity to collaborate with customers to build the sustainability capabilities of their facilities 6Both the Self-Assessment Questionnaire and Audit allow suppliers to cut down on duplication of effort in supporting multiple assessment requests from customers PSCI Overview Presentation | April

PHARMACEUTICAL SUPPLY CHAIN INITIATIVE PSCI Benefits for suppliers PSCI Overview Presentation | April Resource library Our supplier resource library is available to all suppliers who support the PSCI Principles Go to to sign up Training / capacity building events We will be posting information about 2014 training/capacity building events on key issues for suppliers 2 Webinars The PSCI Principles Audit Expectations Supplier Conference To be held in Suzhou September 2014 Watch our website for details

PHARMACEUTICAL SUPPLY CHAIN INITIATIVE PSCI How can you get involved? Join the PSCI as a member and help us to develop (contact for more information) Sign up to the PSCI website, commit to the Principles, and use the tools in the Resource Library to make improvements If you're a supplier, participate in upcoming supplier capability building events PSCI Overview Presentation | April

PHARMACEUTICAL SUPPLY CHAIN INITIATIVE PSCI The Pharmaceutical Supply Chain Initiative PSCI Overview Presentation | March Need more information? Visit: the PSCI Secretariat at psci.bsr.org