Carbon Disclosure Project

Transcription

1 Carbon Disclosure Project CDP 2013 Investor CDP 2013 Information Request Celgene Corporation Module: Introduction Page: Introduction 0.1 Introduction Please give a general description and introduction to your organization Celgene is a multinational biopharmaceutical company committed to improving the lives of patients worldwide. At Celgene, we seek to deliver truly innovative and life-changing therapies for our patients, our healthcare system, our society and our economy. Our mission as a company is to build a major global biopharmaceutical corporation while focusing on the discovery, the development, and the commercialization of products for the treatment of cancer and other severe, immune, inflammatory conditions. There are numerous clinical trials at major medical centers using compounds from Celgene. Investigational compounds with the potential to transform today s treatment paradigms are being studied for patients with incurable hematological and solid tumor cancers, including multiple myeloma, myelodysplastic syndromes, chronic lymphocyte leukemia (CLL), non-hodgkin's lymphoma (NHL), glioblastoma, and ovarian, pancreatic and prostate cancer and more. As committed as we are to clinical accomplishment, we are equally committed to patient safety and support, which are guiding principles at Celgene. We believe all who can benefit from our discoveries should have the opportunity to do so. Celgene puts patients first with industry-leading programs that provide information, for patient support and, to the maximum extent possible, safe access to our innovative therapies. 0.2 Reporting Year Please state the start and end date of the year for which you are reporting data. The current reporting year is the latest/most recent 12-month period for which data is reported. Enter the dates of this year first. We request data for more than one reporting period for some emission accounting questions. Please provide data for the three years prior to the current reporting year if you have not provided this information before, or if this is the first time you have answered a CDP information request. (This does not apply if you have been offered and selected the option of answering the shorter questionnaire). If you are going to provide additional years of data, please give the dates of those reporting periods here. Work backwards from the most recent reporting year. Please enter dates in following format: day(dd)/month(mm)/year(yyyy) (i.e. 31/01/2001).

2 Enter Periods that will be disclosed Sun 01 Jan Mon 31 Dec 2012 Sat 01 Jan Sat 31 Dec Country list configuration Please select the countries for which you will be supplying data. This selection will be carried forward to assist you in completing your response Select country United States of America Switzerland 0.4 Currency selection Please select the currency in which you would like to submit your response. All financial information contained in the response should be in this currency. USD($) 0.6 Modules As part of the request for information on behalf of investors, electric utilities, companies with electric utility activities or assets, companies in the automobile or auto component manufacture sectors, companies in the oil and gas industry and companies in the information technology and telecommunications sectors should complete supplementary questions in addition to the main questionnaire.

3 If you are in these sectors (according to the Global Industry Classification Standard (GICS)), the corresponding sector modules will not appear below but will automatically appear in the navigation bar when you save this page. If you want to query your classification, please If you have not been presented with a sector module that you consider would be appropriate for your company to answer, please select the module below. If you wish to view the questions first, please see Module: Management [Investor] Page: 1. Governance 1.1 Where is the highest level of direct responsibility for climate change within your company? Senior Manager/Officer 1.1a Please identify the position of the individual or name of the committee with this responsibility Richard Bagger, Senior Vice President of Global Corporate Affairs and Market Access, is one of thirteen members of the Senior Executive Management Committee and reports directly to the Chairman and Chief Executive Officer. This committee manages policy and strategy for Celgene worldwide. 1.2 Do you provide incentives for the management of climate change issues, including the attainment of targets? Yes 1.2a

4 Please complete the table Who is entitled to benefit from these incentives? The type of incentives Incentivized performance indicator Other: Director of Engineering, Construction, and Carbon Management Other: ECCM, EHS, and facilities Environment/Sustainability managers Facility managers Monetary reward Monetary reward Monetary reward Monetary reward Completion of CDP, GRI, and improved GHG inventory data management Individual staff pay for performance is linked to environmental initiatives. Individual staff pay for performance is linked to environmental initiatives. Individual staff pay for performance is linked to environmental initiatives. Page: 2. Strategy 2.1 Please select the option that best describes your risk management procedures with regard to climate change risks and opportunities Integrated into multi-disciplinary company wide risk management processes 2.1a Please provide further details i) Scope of Process Celgene has a companywide risk management policy that incorporates risk elements associated with climate change. The policy establishes the process by which Celgene manages and responds to situations with the potential to present a significant impact to Celgene, its employees and/or the patients they serve, including the potential to disrupt or halt normal business operations at local, regional and/or global levels. Celgene defines these risks as crisis situations requiring expedited strategic decisions from senior management. The scope of the policy includes all crisis situations that arise at Celgene locations and the corporation s contractors and marketing partners. A comprehensive policy to specifically address Sustainability and Environment Compliance, Opportunity, and Risk is currently being developed at Celgene. ii) At company level Site management and functional managers are responsible for communicating any potential crisis event to the Chair of Corporate Crisis Management Committee (Core Committee) as soon as possible. The Chief Compliance Officer (CCO) is the chair of the Core Committee. The Core Committee is convened to address a potential or real crisis concern and can determine the impact and, after consultation with the CEO, the need for convening an Extended Committee. Extended

5 Committee members include Executive Leaders (Chief Executive Officer and Chief Financial Officer), regional managers and functional managers, as needed. Crisis management committees may also be convened at the local level as warranted. Celgene will manage crises guided by the following principles: preservation of life and/or relief of suffering; mitigation of harm; protection of employees, property and the environment; maintenance of business continuity; and maintenance of normality. The Committee Chair is responsible for documenting the crisis response strategy and coordinating all proposed actions as outlined in the strategy. Upon execution of a crisis response strategy the Committee will also identify root causes and implement long-term corrective actions including periodic follow up, as appropriate. iii) At asset level, criteria & frequency (Continual) Each site and business unit is responsible for continual awareness of potential crisis situations that could impact the site and/or business unit. Possible crisis situations can include a wide range of issues. Specific examples included in the policy are regulatory mandates, natural disasters (e.g. earthquakes hurricanes, floods), public service interruption (e.g. electricity, water, air travel, roads, railways), and public health threats. iv) Reporting The Committee Chair is responsible for communicating a crisis situation, the proposed crisis response strategy and, as appropriate, milestone reports to the CEO and Management Committee. The CEO or designee will update the Board of Directors, as appropriate. 2.2 Is climate change integrated into your business strategy? No 2.2a Please describe the process and outcomes 2.2b Please explain why not Celgene currently considers the primary business risks and opportunities associated with climate change are related to energy use and associated costs. Through integrating energy efficiency into our operation we see opportunities to mitigate these impacts to our business. Further evaluation of the potential impact of climate change is needed before climate change can be fully integrated into our business strategy. Celgene has formed a team to define a climate change business strategy for global operations. Within this strategy, business goals are in the process of being identified and aligned with the corporate goals as determined to be

6 appropriate by the executive body. A comprehensive policy to specifically address Sustainability and Environmental Compliance, Opportunity, and Risk is currently being developed by Celgene. Company-wide emission reduction targets are being considered based on current operations, expectations of our shareholders, and valued input from our stakeholders. 2.3 Do you engage in activities that could either directly or indirectly influence policy on climate change through any of the following? (tick all that apply) Trade associations 2.3a On what issues have you been engaging directly? Focus of legislation Corporate Position Details of engagement Proposed solution 2.3b Are you on the Board of any trade associations or provide funding beyond membership? 2.3c Please enter the details of those trade associations that are likely to take a position on climate change legislation Is your position on climate change Trade association consistent with theirs? Please explain the trade association's position How have you, or are you attempting to influence the postion? 2.3d

7 Do you publically disclose a list of all the research organizations that you fund? 2.3e Do you fund any research organizations to produce public work on climate change? 2.3f Please describe the work and how it aligns with your own strategy on climate change 2.3g Please provide details of the other engagement activities that you undertake 2.3h What processes do you have in place to ensure that all of your direct and indirect activities that influence policy are consistent with your overall climate change strategy? 2.3i Please explain why you do not engage with policy makers Page: 3. Targets and Initiatives

8 3.1 Did you have an emissions reduction target that was active (ongoing or reached completion) in the reporting year? No 3.1a Please provide details of your absolute target ID Scope % of emissions in scope % reduction from base year Base year Base year emissions (metric tonnes CO2e) Target year Comment 3.1b Please provide details of your intensity target ID Scope % of emissions in scope % reduction from base year Metric Base year Normalized base year emissions Target year Comment 3.1c Please also indicate what change in absolute emissions this intensity target reflects ID Direction of change anticipated in absolute Scope 1+2 emissions at target completion? % change anticipated in absolute Scope 1+2 emissions Direction of change anticipated in absolute Scope 3 emissions at target completion? % change anticipated in absolute Scope 3 emissions Comment

9 3.1d Please provide details on your progress against this target made in the reporting year ID % complete (time) % complete (emissions) Comment 3.1e Please explain (i) why not; and (ii) forecast how your emissions will change over the next five years Celgene is currently considering proposed emissions reduction target options in both the United States and on a global scale. Further evaluation of the potential impact of emission reduction activities is needed before an attainable target can be set. Celgene's priorities continue to focus on how business is performed and making it more sustainable while still maintaining the flexibility to meet patients' needs into the future. It is anticipated that the trend for absolute greenhouse gas emissions will continue toward stabilization or improved reductions over the next several years as efficiency programs are implemented and operations are optimized in response to increased product demand. 3.2 Does the use of your goods and/or services directly enable GHG emissions to be avoided by a third party? No 3.2a Please provide details (see guidance)

10 3.3 Did you have emissions reduction initiatives that were active within the reporting year (this can include those in the planning and implementation phases) Yes 3.3a Please identify the total number of projects at each stage of development, and for those in the implementation stages, the estimated CO2e savings Stage of development Number of projects Total estimated annual CO2e savings in metric tonnes CO2e (only for rows marked *) Under investigation 1 To be implemented* 2 Implementation commenced* 0 0 Implemented* 4 78 Not to be implemented 0 3.3b For those initiatives implemented in the reporting year, please provide details in the table below Activity type Description of activity Estimated annual CO2e savings (metric tonnes CO2e) Annual monetary savings (unit currency - as specified in Q0.4) Investment required (unit currency - as specified in Q0.4) Payback period

11 Activity type Description of activity Estimated annual CO2e savings (metric tonnes CO2e) Annual monetary savings (unit currency - as specified in Q0.4) Investment required (unit currency - as specified in Q0.4) Payback period Transportation: use Low carbon energy installation Other Other Celgene installed several electronic vehicle charging stations with the capacity to power several electric or electric-hybrid vehicles for employees at the several buildings at the Warren, New Jersey facility. The EV charging stations are anticipated to reduce commuter travel emissions by encouraging the use of more fuel efficient electric or electric-hybrid vehicles. These charging stations were installed and operational in The lifetime of these charging stations is estimated at years before replacement. Celgene installed an 11 kw solar panel array at the Summit, New Jersey facility. This array is meant to decrease Celgene s consumption of electricity from our local utility and fossil-fuel derived electricity. The food preparation area of the Cafeteria at the Summit, NJ facility, operated by Sodexo, has begun to collect food and organic waste into a separate waste stream that is sent to a facility to make compost. This program is meant to reduce our overall waste output that is normally sent to incineration and wasteto-energy operations and thereby decreasing respective emissions. Celgene has a recycling program in place at the Summit Facility. This program is meant to reduce our overall waste output that is normally sent to incineration and thereby decreasing respective emissions years 4-10 years <1 year <1 year 3.3c What methods do you use to drive investment in emissions reduction activities? Method Comment Compliance with regulatory requirements/standards Dedicated budget for energy efficiency Dedicated budget for other emissions reduction activities

12 Method Comment Employee engagement Financial optimization calculations Internal incentives/recognition programs 3.3d If you do not have any emissions reduction initiatives, please explain why not Page: 4. Communication 4.1 Have you published information about your company s response to climate change and GHG emissions performance for this reporting year in places other than in your CDP response? If so, please attach the publication(s) Publication Page/Section reference Attach the document In voluntary communications (underway) previous year attached The Supporting Environmental Health section (pages 19-24) of the attached Celgene Corporate Responsibility Report discusses Celgene s energy, greenhouse gas, and climate change performance. This report can also be accessed on our website. CDP 2013/Shared Documents/Attachments/Investor-4.1-C3-IdentifytAttachment/Investor-4.1- PublishedInformation1/CELGENE_RR2012_FINAL[1].pdf Module: Risks and Opportunities [Investor] Page: 5. Climate Change Risks

13 5.1 Have you identified any climate change risks (current or future) that have the potential to generate a substantive change in your business operations, revenue or expenditure? Tick all that apply Risks driven by changes in regulation Risks driven by changes in physical climate parameters Risks driven by changes in other climate-related developments 5.1a Please describe your risks driven by changes in regulation ID Risk driver Description Potential impact Timeframe Direct/ Indirect Likelihood Magnitude of impact RR- 1 RR- 2 Cap and trade schemes Voluntary agreements AB32 California Cap and Trade Program limits greenhouse gas emissions from large sources, including utilities. Although this program does not directly affect our facilities since Celgene facilities are not considered to be large sources of emissions under this program. This regulation will likely cause an increase in electricity and natural gas costs associated with energy purchasing for our facility in CA. Celgene International Sarl (Boudry facility) joined a voluntary energy savings program of the Swiss Private Sector Energy Agency. As part of this agreement, the Boudry facility commits itself to the active reduction of CO2 emissions and to the optimization of energy efficiency. The Boudry facility has set an annual energy saving objective, agreeing that the savings are to be achieved on the basis of the effectiveness of the measures undertaken. Ten measures have been defined for 3 years according to a signed agreement with the Agency. Measures that have been implemented in 2012 include optimization of air handling of offices and fitness Increased operational cost Increased capital cost 1-5 years Direct Very likely Medium 6-10 years Direct Very likely Low

14 ID Risk driver Description Potential impact Timeframe Direct/ Indirect Likelihood Magnitude of impact RR- 3 RR- 4 RR- 5 General environmental regulations, including planning Cap and trade schemes Carbon taxes center at the Boudry facility. The New Jersey Global Warming Response Act set statewide limits on greenhouse gas emissions in July The law mandates reductions in greenhouse gas emissions to 1990 levels by 2020, approximately a 20 percent reduction below estimated 2020 business-as-usual emissions, followed by a further reduction of emissions to 80 percent below 2006 levels by 2050.Celgene is not currently directly impacted by this act but could be impacted directly or indirectly by various state programs implemented to meet these limits in the future as Celgene has several facilities in NJ. Impacts could include increases in operating costs (fuel and electricity costs rise from increases in regulation and required reductions in GHG emissions) and increases in capital costs (resulting from requirements to comply with GHG reduction projects) Celgene will continue to monitor this risk. In 2011, New Jersey formally notified the Regional Greenhouse Gas Initiative (RGGI) Signatory States that it was withdrawing its agreement to the Memorandum of Understanding and would become a non-signatory state in RGGI allocates CO2 allowances to Signatory States. There is risk that New Jersey may choose to join the RGGI again as changes in public office occur in the future or if the state legislature succeeds in their current effort to get this issue put on the November 2013 ballot. This risk is politically linked and the likelihood is unknown, but Celgene will continue to monitor this risk for its operations in NJ. Effective in Switzerland (Boudry facility). The Swiss carbon tax applies to natural gas and heating oil but does not apply to transport fuels, wood, or biomass. Other: Increased capital cost; Increased operational cost Other: Increased capital cost; Increased operational cost Increased operational cost Unknown Direct Unknown Medium Unknown Direct Unknown Medium Current Direct Virtually certain Medium 5.1b

15 Please describe (i) the potential financial implications of the risk before taking action; (ii) the methods you are using to manage this risk and (iii) the costs associated with these actions RR-1. (i) Increase in electricity and natural gas costs associated with energy purchasing. (ii) The risk is being managed through energy reduction measures and employee energy conservation awareness training. (iii) Equipment replacement costs, building upgrades, employee energy conservation training. RR-2. (i) Increased capital costs required to meet agreements. (ii) The risk is being managed by evaluation of return on investment for each capital improvement project. (iii) Equipment replacement and upgrade costs. RR-3. (i) Increased capital and operating costs associated with various state implemented measures taken to reduce GHG emissions (e.g. low emission vehicle requirements, renewable energy portfolio standards, etc). (ii) Continued energy reduction measures and employee energy conservation awareness training, Continued evaluation of return on investment. (iii) Equipment replacement costs, building upgrades, employee energy conservation training. RR-4. (i) Capital costs associated with equipment replacement and building upgrades. Investment in carbon offsets. (ii) Continued energy reduction measures and employee energy conservation awareness training, Continued evaluation of return on investment. (iii) Equipment replacement costs, building upgrades, employee energy conservation training. RR-5. (i) Increased operating costs associated with purchasing natural gas. Capital costs associated with equipment replacement and building upgrades to reduce natural gas usage. (ii) Continued energy reduction measures and employee energy conservation awareness training, continued evaluation of return on investment, continuing use and increases in wood heating to reduce natural gas fuel purchases. (iii) There are costs associated with equipment replacements, building upgrades, and employee energy conservation training. 5.1c Please describe your risks that are driven by change in physical climate parameters ID Risk driver Description Potential impact Timeframe Direct/ Indirect Likelihood Magnitude of impact PR- 1 Tropical cyclones (hurricanes and typhoons) In 2012 Celgene experienced Hurricane Sandy which impacted our US facilities in New Jersey. Celgene did not experience business critical interruptions in product distribution or call center operations, however minor business operations were impacted. Staff were temporarily relocated from the corporate headquarters in Summit to alternate Celgene facilities. Celgene s corporate headquarters in Summit is upgrading their emergency power systems to provide increased backup Other: temporary staff relocation Current Direct Virtually certain Medium

16 ID Risk driver Description Potential impact Timeframe Direct/ Indirect Likelihood Magnitude of impact capacity to cover seventy percent of the site operations. Extreme weather events such as droughts in Arizona or typhoons in California could affect several of our other facilities. All of our facilities have adequate emergency backup generators to address potential power outages associated with extreme weather events. PR- 2 Uncertainty of physical risks Reduction/disruption in production capacity 1-5 years Direct About as likely as not Unknown PR- 3 Uncertainty of physical risks Extreme weather events such as droughts, floods, hurricanes or typhoons, could affect our supply chain. Reduction/disruption in production capacity 1-5 years Indirect (Supply chain) About as likely as not Unknown 5.1d Please describe (i) the potential financial implications of the risk before taking action; (ii) the methods you are using to manage this risk; and (iii) the costs associated with these actions PR-1 (i) Celgene s business operations in New Jersey were impacted in 2012 by Hurricane Sandy. Celgene did not experience business critical interruptions in product distribution or call center operations, however minor business operations were impacted. Staff were temporarily relocated from the corporate headquarters in Summit to alternate Celgene facilities. (ii) Celgene is managing this risk by upgrading their emergency power systems at Summit to provide increased backup capacity to cover seventy percent of the site operations. (iii) There are costs associated with these emergency power system upgrades. PR-2, (i) Potential loss of product or inability to supply the market could have financial implications. (ii) Celgene has already taken measures to protect operations from identifiable risks and determined that their other facilities (all except Summit) have adequate emergency backup generators to address potential power outages associated with extreme weather events. (iii). There are no current costs anticipated to manage these risks at this time. PR-3. (i) Potential loss of product or inability to supply the market could have financial implications.manufacturing and distribution risks including a disruption at certain of our manufacturing and distribution sites would significantly interrupt our production capabilities, which could result in significant product delays and adversely affect our results. We have our own manufacturing facilities for many of our products and we have contracted with third-party manufacturers and distributors to provide active pharmaceutical ingredient, or API, encapsulation, finishing services, packaging and distribution services to meet our needs. These operations expose us to risks that include the possibility that our or our suppliers manufacturing processes and distribution channels could be partially or completely disrupted by a natural disaster. In the case of a disruption, we may need to establish alternative manufacturing sources for these products. This would likely lead to substantial production delays as we build or locate replacement facilities and seek and obtain the necessary regulatory approvals. If this occurs, and our finished goods inventories are insufficient to meet demand, we may be unable to satisfy customer orders on a timely basis, if at all. Further, our business interruption insurance may not adequately compensate us for any losses that may occur and we would have to bear the uncovered cost of any disruption. For these reasons, a significant disruptive event affecting these manufacturing facilities or sites could materially and adversely affect our business and results of operations.

17 5.1e Please describe your risks that are driven by changes in other climate-related developments ID Risk driver Description Potential impact Timeframe Direct/ Indirect Likelihood Magnitude of impact OR- 1 Reputation As global concern about the impacts of climate change continues to rise, companies are facing increasing pressure to actively participate in efforts to reduce their emissions of greenhouse gases. As a publicly listed company, Celgene recognizes that some financial shareholders are increasingly interested in the climate change policies and practices of the companies in which they invest. Other stakeholders including customers, consumers, employees, government agencies and local communities may also be concerned if Celgene does not participate effectively in reducing and planning for climate change impacts. These considerations are relevant to all regions where Celgene does business, but particularly in California where there is a high level of public awareness and concern about environmental issues. Reduced stock price (market valuation) 6-10 years Indirect (Client) About as likely as not Low 5.1f Please describe (i) the potential financial implications of the risk before taking action; (ii) the methods you are using to manage this risk; (iii) the costs associated with these actions OR-1: Reputation (i) Celgene is aware that other companies, including some in our own sector, have faced shareholder criticism for failing to make meaningful commitments toward environmental sustainability and/or for a lack of transparency regarding their efforts and commitments in this respect. As a healthcare company, we do not have the high environmental profile that companies in other, more energy-intensive sectors do. However, we are a publicly listed company and we acknowledge the increasing evidence of linkages between share value and environmental performance. As we grow we believe that our environmental sustainability commitments will become of increasing interest to our shareholders and other stakeholders and that ultimately a failure to effectively respond could negatively impact our share value. We also recognize the linkages between climate change and human health and believe that as public awareness about these linkages grows, the credibility of our healthcare mission, and therefore our overall brand, could be undermined if we are not seen to be acting responsibly on issues such as climate change and water resources. Celgene s success depends, in large part, on our continued ability to (i) attract and retain highly qualified management, scientific, manufacturing and commercial personnel, (ii) successfully integrate large numbers of new employees into our corporate culture and (iii)

18 develop and maintain important relationships with leading research and medical institutions and key distributors. Competition for these types of personnel and relationships is intense. We recognize that employees, and particularly younger generations who are the future of our company, increasingly care about the environmental sustainability commitments of their employers and a failure to effectively integrate environmental sustainability to our business could negatively affect our ability to attract and retain high quality talent in the future, potentially undermining our competitiveness. We do not consider it possible to place a quantitative financial value on the implications of these risks at this time; however a reduction in the value of our stock would reduce our available capital and potentially impact our ability to continue our current growth trajectory. (ii) Celgene addressing environmental sustainability through our efforts to manage our energy and water use, increase energy efficiency and track GHG emissions, should serve to protect our reputation with stakeholders. Specific actions we are taking to ensure that our stakeholders are made aware of our efforts include annual response to the CDP Climate Change and Water questionnaires, and disclosure through our first annual GRI conformant corporate responsibility report in (iii) There are costs associated with completing these disclosures. 5.1g Please explain why you do not consider your company to be exposed to risks driven by changes in regulation that have the potential to generate a substantive change in your business operations, revenue or expenditure 5.1h Please explain why you do not consider your company to be exposed to risks driven by physical climate parameters that have the potential to generate a substantive change in your business operations, revenue or expenditure 5.1i Please explain why you do not consider your company to be exposed to risks driven by changes in other climate-related developments that have the potential to generate a substantive change in your business operations, revenue or expenditure Page: 6. Climate Change Opportunities

19 6.1 Have you identified any climate change opportunities (current or future) that have the potential to generate a substantive change in your business operations, revenue or expenditure? Tick all that apply Opportunities driven by changes in regulation Opportunities driven by changes in other climate-related developments 6.1a Please describe your opportunities that are driven by changes in regulation ID Opportunity driver Description Potential impact Timeframe Direct/Indirect Likelihood Magnitude of impact RO- 1 Cap and trade schemes AB32 California Cap and Trade Program limits greenhouse gas emissions from large sources, including utilities. This regulation will likely cause an increase in electricity and natural gas costs associated with energy purchasing. The anticipated market response is reduction in energy usage, resulting in increased availability of carbon offsets. Reduced operational costs 1-5 years Direct More likely than not Low RO- 2 Carbon taxes Effective in Switzerland. One third of carbon tax was allocated to climate friendly building renovations, use of renewable energy and building engineering. The Swiss carbon tax applies to natural gas and heating oil but does not apply to transport fuels, wood, or biomass and its revenues are recycled back to consumers and businesses. Companies are allowed to exempt themselves from the tax by participating in a Swiss cap-and-trade emissions trading scheme where they voluntarily commit to legally binding targets to reduce their CO2 emissions. Reduced operational costs Current Direct Virtually certain Medium 6.1b Please describe (i) the potential financial implications of the opportunity; (ii) the methods you are using to manage this opportunity and (iii) the costs associated with these actions

20 RO-1. (i) Reduction in carbon offset price. (ii) Continued monitoring of AB32 implementation and evaluation of carbon offset price. (iii) There are minimal costs associated with monitoring this activity at this time. RO-2. (i) Reduction in carbon tax and reductions in energy consumption. (ii) Celgene International Sarl (Boudry facility) joined a voluntary energy savings program of the Swiss Private Sector Energy Agency. As part of this agreement, the Boudry facility commits itself to the active reduction of CO2 emissions and to the optimization of energy efficiency. (iii) The energy savings realized help offset the costs associated with these activities. 6.1c Please describe the opportunities that are driven by changes in physical climate parameters ID Opportunity driver Description Potential impact Timeframe Direct/ Indirect Likelihood Magnitude of impact 6.1d Please describe (i) the potential financial implications of the opportunity; (ii) the methods you are using to manage this opportunity and (iii) the costs associated with these actions 6.1e Please describe the opportunities that are driven by changes in other climate-related developments ID Opportunity driver Description Potential impact Timeframe Direct/ Indirect Likelihood Magnitude of impact OO- Reputation Companies that do their part to address environmental issues, such Increased 6-10 years Direct About as Low

21 ID Opportunity driver Description Potential impact Timeframe Direct/ Indirect Likelihood Magnitude of impact 1 as the effects of climate change and the depletion of natural resources will enhance their reputation, improve performance and gain competitive advantage. Celgene is addressing environmental sustainability through our commitment to environmental responsibility. Celgene is managing and measuring our environmental impacts and communicating these through CDP and GRI annual reporting. stock price (market valuation) likely as not 6.1f Please describe (i) the potential financial implications of the opportunity; (ii) the methods you are using to manage this opportunity; (iii) the costs associated with these actions OO-1 (i) We currently do not know the full financial implications of climate related opportunities associated with our reputation; (ii) we are managing our opportunities for reputation improvements through our annual response to the CDP Climate Change and Water questionnaires, and disclosure through our first annual GRI conformant corporate responsibility report in (iii) There are costs associated with completing these disclosures. 6.1g Please explain why you do not consider your company to be exposed to opportunities driven by changes in regulation that have the potential to generate a substantive change in your business operations, revenue or expenditure 6.1h Please explain why you do not consider your company to be exposed to opportunities driven by physical climate parameters that have the potential to generate a substantive change in your business operations, revenue or expenditure

22 Any physical changes posed by climate change are negative. Increased risk of extreme weather, droughts, fires, and heat waves would all negatively impact the Company s operations. 6.1i Please explain why you do not consider your company to be exposed to opportunities driven by changes in other climate-related developments that have the potential to generate a substantive change in your business operations, revenue or expenditure Module: GHG Emissions Accounting, Energy and Fuel Use, and Trading [Investor] Page: 7. Emissions Methodology 7.1 Please provide your base year and base year emissions (Scopes 1 and 2) Base year Scope 1 Base year emissions (metric tonnes CO2e) Scope 2 Base year emissions (metric tonnes CO2e) Tue 01 Jan Wed 31 Dec

23 Please give the name of the standard, protocol or methodology you have used to collect activity data and calculate Scope 1 and Scope 2 emissions Please select the published methodologies that you use The Climate Registry: General Reporting Protocol The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (Revised Edition) US EPA Climate Leaders: Direct Emissions from Stationary Combustion US EPA Climate Leaders: Direct Emissions from Mobile Combustion Sources US EPA Climate Leaders: Indirect Emissions from Purchases/Sales of Electricity and Steam US EPA Climate Leaders: Direct HFC and PFC Emissions from Use of Refrigeration and Air Conditioning Equipment IPCC Guidelines for National Greenhouse Gas Inventories, a If you have selected "Other", please provide details below 7.3 Please give the source for the global warming potentials you have used Gas Reference CH4 N2O CO2 HFCs IPCC Second Assessment Report (SAR year) IPCC Second Assessment Report (SAR year) IPCC Second Assessment Report (SAR year) Other: The Climate Registry: General Reporting Protocol 7.4

24 Please give the emissions factors you have applied and their origin; alternatively, please attach an Excel spreadsheet with this data Fuel/Material/Energy Emission Factor Unit Reference Natural gas 0.05 Distillate fuel oil No Wood or wood waste Natural gas 0.1 Distillate fuel oil No Wood or wood waste 4.2 Natural gas 1 Distillate fuel oil No 2 3 Wood or wood waste 32 Other: Gasoline Light Duty Trucks Other: Gasoline Light Duty Trucks Other: Gasoline Light Duty Trucks Other: Passenger Cars 8.81 Other: Passenger Cars 0.02 Other: Passenger Cars 0.01 Other: LPG light-duty vehicles 5.79 Other: kg CO2/scf Other: kg CO2/barrel Other: kg CO2/ton Other: g N2O/MMBTU Other: g N2O/MMBTU Other: g N2O/MMBTU Other: g CH4/MMBTU Other: g CH4/MMBTU Other: g CH4/MMBTU Other: kg CO2/gal Other: g N2O/mile Other: g CH4/mile Other: kg CO2/gal Other: g N2O/mile Other: g CH4/mile Other: kg CO2/mile Climate Leaders Direct Emissions from Stationary Combustion guidance document, May 2008, Table B-5 Climate Leaders Direct Emissions from Stationary Combustion guidance document, May 2008, Table B-5 Climate Leaders Direct Emissions from Stationary Combustion guidance document, May 2008, Table A-1 Climate Leaders Direct Emissions from Stationary Combustion guidance document, May 2008, Table A-1 Climate Leaders Direct Emissions from Stationary Combustion guidance document, May 2008, Table A-1 Climate Leaders Direct Emissions from Stationary Combustion guidance document, May 2008, Table A-1 Climate Leaders Direct Emissions from Stationary Combustion guidance document, May 2008, Table A-1 Climate Leaders Direct Emissions from Stationary Combustion guidance document, May 2008, Table A-1 Climate Leaders GHG Protocol, Direct Emissions from Mobile Combustion Sources (May 2008), Tables A-1, A-6, A-7, B-1, and B-3 Climate Leaders GHG Protocol, Direct Emissions from Mobile Combustion Sources (May 2008), Tables A-1, A-6, A-7, B-1, and B-3 Climate Leaders GHG Protocol, Direct Emissions from Mobile Combustion Sources (May 2008), Tables A-1, A-6, A-7, B-1, and B-3 Climate Leaders GHG Protocol, Direct Emissions from Mobile Combustion Sources (May 2008), Tables A-1, A-6, A-7, B-1, and B-3 Climate Leaders GHG Protocol, Direct Emissions from Mobile Combustion Sources (May 2008), Tables A-1, A-6, A-7, B-1, and B-3 Climate Leaders GHG Protocol, Direct Emissions from Mobile Combustion Sources (May 2008), Tables A-1, A-6, A-7, B-1, and B-3 Climate Leaders GHG Protocol, Direct Emissions from Mobile Combustion Sources (May 2008), Tables A-1, A-6, A-7, B-1, and B-3 Climate Leaders GHG Protocol, Direct Emissions from Mobile Combustion Sources (May 2008), Tables A-1, A-6, A-7, B-1, and B-3

25 Fuel/Material/Energy Emission Factor Unit Reference Other: LPG light-duty vehicles Other: LPG light-duty vehicles Other: g N2O/mile Other: g CH4/mile Electricity lb CO2 per MWh Electricity Electricity Other: lb CH4/GWh Other: lb N2O/GWh Climate Leaders GHG Protocol, Direct Emissions from Mobile Combustion Sources (May 2008), Tables A-1, A-6, A-7, B-1, and B-3 Climate Leaders GHG Protocol, Direct Emissions from Mobile Combustion Sources (May 2008), Tables A-1, A-6, A-7, B-1, and B-3 International Energy Agency (IEA)'s CO2 Emissions from Fuel Combustion Highlights, 2010 Edition: Switzerland US Department of Energy s Energy Information Administration website Switzerland US Department of Energy s Energy Information Administration website Switzerland Electricity lb CO2 per MWh egrid2012 Sub Region Emission Rates for RFC East, United States of America Electricity 0.03 Other: lb CH4/MWh egrid2012 Sub Region Emission Rates for RFC East, United States of America Electricity 0.02 Other: lb N2O/MWh egrid2012 Sub Region Emission Rates for RFC East, United States of America Electricity lb CO2 per MWh egrid2012 Sub Region Emission Rates for WECC Southwest, United States of America Electricity 0.02 Other: lb CH4/MWh egrid2012 Sub Region Emission Rates for WECC Southwest, United States of America Electricity 0.02 Other: lb N2O/MWh egrid2012 Sub Region Emission Rates for WECC Southwest, United States of America Electricity lb CO2 per MWh egrid2012 Sub Region Emission Rates for WECC California, United States of America Electricity 0.03 Other: lb CH4/MWh egrid2012 Sub Region Emission Rates for WECC California, United States of America Electricity 0.01 Other: lb N2O/MWh egrid2012 Sub Region Emission Rates for WECC California, United States of America Page: 8. Emissions Data - (1 Jan Dec 2011) 8.1 Please select the boundary you are using for your Scope 1 and 2 greenhouse gas inventory

26 Equity share 8.2 Please provide your gross global Scope 1 emissions figures in metric tonnes CO2e Please provide your gross global Scope 2 emissions figures in metric tonnes CO2e Are there are any sources (e.g. facilities, specific GHGs, activities, geographies, etc.) of Scope 1 and Scope 2 emissions which are not included in your disclosure? Yes 8.4a Please complete the table Source Scope Explain why the source is excluded Melrose Park, IL Facility Scope 1 and 2 Incomplete information for the period in question. Elk Grove Village, IL Facility Scope 1 and 2 Incomplete information for the period in question.

27 8.5 Please estimate the level of uncertainty of the total gross global Scope 1 and 2 emissions figures that you have supplied and specify the sources of uncertainty in your data gathering, handling and calculations Scope 1 emissions: Uncertainty range Scope 1 emissions: Main sources of uncertainty Scope 1 emissions: Please expand on the uncertainty in your data Scope 2 emissions: Uncertainty range Scope 2 emissions: Main sources of uncertainty Scope 2 emissions: Please expand on the uncertainty in your data More than 10% but less than or equal to 20% Assumptions Metering/ Measurement Constraints Data Management Utility metering data, used to collect natural gas usage activity data comprising the majority of Scope 1 emissions, has minor uncertainty associated with equipment accuracy. HFCs emissions, the second largest source of Scope 1 emissions, are primarily based upon estimates for equipment leakage rates rather than actual data and have a much greater degree of uncertainty. The majority of the fuel oil usage data is metered but a portion of the fuel oil usage data is estimated based upon fuel purchase records and equipment run times resulting in some uncertainty. Although a minor source of emissions, gasoline usage for mobile sources is estimated based upon mileage and fuel efficiency estimates. Potential for uncertainty also lies in data management practices as the activity data is manually transferred from invoicing records to data collection spreadsheets and then to calculation spreadsheets. More than 2% but less than or equal to 5% Metering/ Measurement Constraints Data Management Utility metering data is used to collect electricity usage activity data. Although utility meters are routinely calibrated by the utilities the metering data is subject to minor uncertainties associated with the accuracy of the metering equipment. Potential for uncertainty also lies in data management practices as the activity data is manually transferred from utility invoicing records to data collection spreadsheets and then to calculation spreadsheets. 8.6

28 Please indicate the verification/assurance status that applies to your Scope 1 emissions No third party verification or assurance 8.6a Please indicate the proportion of your Scope 1 emissions that are verified/assured 8.6b Please provide further details of the verification/assurance undertaken, and attach the relevant statements Type of verification or assurance Relevant standard Attach the document 8.6c Please provide further details of the regulatory regime to which you are complying that specifies the use of Continuous Emissions Monitoring Systems (CEMS) Regulation % of emissions covered by the system Compliance period Evidence of submission 8.7 Please indicate the verification/assurance status that applies to your Scope 2 emissions No third party verification or assurance

29 8.7a Please indicate the proportion of your Scope 2 emissions that are verified/assured 8.7b Please provide further details of the verification/assurance undertaken, and attach the relevant statements Type of verification or assurance Relevant standard Attach the document 8.8 Are carbon dioxide emissions from biologically sequestered carbon relevant to your organization? Yes 8.8a Please provide the emissions in metric tonnes CO2 655 Further Information The 2011 emissions are being restated to reflect improvements in data availability and quality.

30 Page: 8. Emissions Data - (1 Jan Dec 2012) 8.1 Please select the boundary you are using for your Scope 1 and 2 greenhouse gas inventory Equity share 8.2 Please provide your gross global Scope 1 emissions figures in metric tonnes CO2e Please provide your gross global Scope 2 emissions figures in metric tonnes CO2e Are there are any sources (e.g. facilities, specific GHGs, activities, geographies, etc.) of Scope 1 and Scope 2 emissions which are not included in your disclosure? Yes 8.4a

31 Please complete the table Source Scope Explain why the source is excluded Melrose Park, IL Scope 1 and 2 Incomplete information for the period in question. 8.5 Please estimate the level of uncertainty of the total gross global Scope 1 and 2 emissions figures that you have supplied and specify the sources of uncertainty in your data gathering, handling and calculations Scope 1 emissions: Uncertainty range Scope 1 emissions: Main sources of uncertainty Scope 1 emissions: Please expand on the uncertainty in your data Scope 2 emissions: Uncertainty range Scope 2 emissions: Main sources of uncertainty Scope 2 emissions: Please expand on the uncertainty in your data More than 10% but less than or equal to 20% Assumptions Metering/ Measurement Constraints Data Management Utility metering data, used to collect natural gas usage activity data comprising the majority of Scope 1 emissions, has minor uncertainty associated with equipment accuracy. HFCs emissions, the second largest source of Scope 1 emissions, are primarily based upon estimates for equipment leakage rates rather than actual data and have a much greater degree of uncertainty. The majority of the fuel oil usage data is metered but a portion of the fuel oil usage data is estimated based upon fuel purchase records and equipment run times resulting in some uncertainty. Although a minor source of emissions, gasoline usage for mobile sources is estimated based upon mileage and fuel efficiency estimates. Potential for uncertainty also lies in data management practices as the activity data is manually More than 2% but less than or equal to 5% Metering/ Measurement Constraints Data Management Utility metering data is used to collect electricity usage activity data. Although utility meters are routinely calibrated by the utilities the metering data is subject to minor uncertainties associated with the accuracy of the metering equipment. Potential for uncertainty also lies in data management practices as the activity data is manually transferred from utility invoicing records to data collection spreadsheets and then to calculation spreadsheets.