Evolution. NAEM Management Forum October 18, 2012
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1 Quintiles Sustainability Evolution NAEM Management Forum October 18, 2012
2 Agenda Introduction to Quintiles Evolution of Sustainability at Quintiles Industry Market Study Finding Cultural Hot-Buttons Understanding the Business Strategy Developing the Sustainability Strategy Gaining Executive Support Implementation of Strategy and Communication Final Thoughts 2
3 Introduction to Quintiles 3
4 Innovation through Integration End-to-end dholistic solutions that tembrace transformation ti Experienced-based insights Local knowledge, global value Sharing risks and expanding opportunities Integrating strategic insight with specialized execution
5 Global Capabilities The world s largest CRO global l presence Headquarters- Research Triangle Park, North Carolina Headquarters Quintiles Offices Quintiles Central and Affiliated Labs Quintiles internal data as of August 1,2012
6 Leading Development & Commercialization Raising i the standard d of excellence Between 2004 and 2011, Quintiles helped develop or commercialize 72% of all new NME/BLA products* including those in the following categories: 100% 79% 77% Diabetes & Urology Anti-Inflammatory Anti-Infective 76% Oncology 72% Cardiovascular 63% Gastroenterology t *FDA Drugs and Biologics Approval Report, accessed ; Quintiles internal project management databases
7 THE HUMAN TOUCH 25,000 Quintiles employees in 62 countries contributed to the development or commercialization of all of 2011 s top 50 best-selling selling products or compounds. Quintiles data as of 8/1/ ,380 MD s and PhD s 4,200 Clinical Monitoring Associates Nurse Advisors 5,200 Commercial Sales Representatives Project Managers 25,000 Employees Worldwide THINKERS & DOERS Evaluate Pharma 2011 Report Top Selling Products, May 2, 2012 ; Quintiles internal project management databases
8 Evolution of Sustainability at Quintiles
9 Evolution of Sustainability at Quintiles 9
10 Industry Market Study Over come pre-conceived definitions of sustainability Sustainability = Green Sustainability = Facilities Waste Recycling Program Customers care about it, but we re a service company so it doesn t apply to us Determined what sustainability means to the biopharma industry through a market study with the purpose of: Identifying emerging industry trends in sustainability Evaluating sustainability transparency and performance for Quintiles competitors and customers Evaluating of customer supply chain expectations Identifying global Sustainability regulations that may impact Quintiles 10
11 Finding Cultural l Hot-Buttons tt Maintaining competitive advantage Quintiles is the largest CRO not comfortable being left behind by one or more competitors Meeting customer expectations Increasing customer expectations via RFIs, sourcing, sustainability audits, etc. Examples include: Johnson & Johnson requests key suppliers to publicly report at least two sustainability goals (Healthy Future 2015 Goals) Roche identifies CROs as a high priority for supply chain auditing and improvement (Roche Corporate Responsibility Report) Astra Zeneca wants key suppliers to have reduction targets (CO2, waste, water) and report on them by 2015 (Astra Zeneca Responsible Business Plan) Pharmaceutical Supply Chain Initiative Engaging employees Employees want to work for a company that acts responsibly Potential employees often ask about sustainability in interviews Sustainability fits with Quintiles culture Acting in a environmentally and socially responsible way is part of the company s values 11
12 We re not alone with customers driving i our initiatives iti Six growing trends in corporate sustainability by Ernst & Young,
13 Understanding di the Business Strategyt Growth and investment plans and/or possible IPO Geographic expansion Becoming a strategic partner with customers, high customer satisfaction Need for increased visibility via annual sustainability reports 13
14 Developing the Sustainability Strategyt Held a strategic planning session with representation from: General Counsel Business Ethics Environmental, Health, and Safety Human Resources Facilities Marketing and Communications Strategic Accounts Strategic Planning Established Priorities, Goals, Objectives, Strategies, Activities for next three years Established a Sustainability Committee and Corporate Policy 14
15 Quintiles Goals To be recognized as the biopharmaceutical services industry leader in sustainability People Create a workplace of highly-engaged, safe & healthy employees Wellness Engagement Health and Safety Planet Make a positive impact on the environments in which we work Biohazardous Waste Paper Waste Electricity Business Travel Public Engage consistently and transparently in a manner that inspires participation and demonstrates leadership in sustainability Customers Patients Suppliers Transparency 15
16 Sustainability Committee Organization Executives and Board Sustainability Committee Leads Planet Working Group People Working Group Engagement People Working Group Wellness and Accident Rates Public Working Group Customers and Reporting Public Working Group Patients Public Working Group Supply Chain 16
17 Gaining i Executive Support Wrote a white paper p on the strategy Presented the draft strategy to the Executives and Board Board members from other companies provided outside perspective which influenced other Quintiles members One executive is sponsoring the strategy moving forward also key for support Results Realization that a sustainability strategy is important for Quintiles Commitment to an annual sustainability report to be published in fall 2012 Support for strategy and interest in progress 17
18 The CEO s Role in Sustainability The business of sustainability: McKinsey Global Survey results by McKinsey October
19 Strategy t Implementation ti and Communication Strategy Implementation Sustainability Work Plan Key Lead and Team Detailed Activities Priority Status Three-Year Timeline Communication Sustainability Committee monthly meetings and working towards goals and objectives Executive sustainability dashboard 6 month update Annual review of progress at Board meeting Annual sustainability report to be transparent with internal and external stakeholders and to keep Quintiles on track Q intranet social media expected to play a part Regard your good name as the richest jewel you can possibly possess Socrates 19
20 Final Thoughts 20
21 Final Thoughtsht Educating our employees on what sustainability means was an important first step Finding Cultural Hot-Buttons by doing our research and aligning with the business strategy helped us gain executive support Customer expectations Maintain competitive advantage Business growth Protecting reputation Formalizing our sustainability strategy included: Establishing priorities, goals, objectives, strategies and activities for next three years Establishing a Sustainability Committee and Corporate Policy Establishing Working Groups to accomplish goals Maintaining communication with the Executives and Board was crucial for strategy support and will help keep the Sustainability Committee on track 21
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