QIAGEN N.V. Environment | Social | Governance | Annex | Page 2 |
Table of contents
14 Environment
15 Facts and figures
16 Environmental responsibility
29 Social
- Facts and figures
- Investing in people
- Serving society
57 Governance
58 Facts and figures
59 Ensuring business with integrity
61 Sustainable procurement
67 Human rights
67 Business ethics
70 Data and cyber security
71 Tax
73 EU Taxonomy
81 Annex
81 Assurance report of the independent auditor
- Detailed tax disclosure (country-by-country reporting)
- Sustainability Accounting Standards Board (SASB) Index
- GRI content index
106 TCFD index
Environment | Social | Governance | Annex | Page 3 |
Foreword
2023 reminded us once again that we inhabit a world beset by concurrent challenges-environmental, social, and political-that impact us all. As an international corporation and a global leader in life sciences and molecular diagnostics, QIAGEN is uniquely positioned and deeply committed to helping shape a sustainable future. We prioritize and invest in environmental, social, and governance (ESG) matters because they positively impact the way we do business and ultimately benefit our stakeholders, including our customers and QIAGENers. Our ESG commitments are focused on building better business practices rather than simply meeting regulatory requirements. Our vision of "Making improvements in life possible" compels us to advance science, improve patient outcomes, and give vulnerable populations better access to healthcare. This sustainability report not only outlines the significant progress we have made in 2023 in fulfilling our ESG commitments. It also illuminates the path that lies ahead and recognizes the ~6,000 QIAGENers who dedicate unwavering effort to the progress of society.
Protecting the environment
Climate change is a critical global issue, which puts environmental conservation and climate action at the forefront of our initiatives. We have set ambitious targets to minimize our impact on the planet, including reducing greenhouse gas emissions and plastic usage, conserving water and minimizing waste.
The Science Based Targets initiative (SBTi) has validated our near and long- term emission reduction targets of a 42% reduction in Scope 1 and 2 emissions by 2030 and net zero by 2050. We also reduced our Scope 1 and 2 emissions by 15% and our plastic usage by 7% in 2023. ISO-certification remains integral to our environmental sustainability strategy, and we have now obtained the Environmental Management System (EMS) ISO 14001 certification for our Hilden, Germany site.
Empowering our people and improving global health equity To overcome present and future challenges, we need to innovate and collaborate, and we can't do that effectively without a diverse and inclusive workforce. At QIAGEN, we strive to provide equal opportunities for all
employees to develop their talents and contribute effectively. In 2023, we achieved our goal of having women hold 36% of leadership roles (up from 35% in 2022) and launched our new Community 'Mosaic' to celebrate ethnic diversity within our organization.
Beyond our international operations, we're committed to making sure that global communities in need have access to our products and solutions. Since its launch, over 100 million of our QuantiFERON-TB Gold Plus have been distributed across 130 countries worldwide.
We also provided humanitarian assistance and disaster relief to Ukraine, Libya, Türkiye and Syria in the form of product and financial donations.
Ethical governance
We strive to meet the highest standards of ethical conduct and ensure transparency, accountability, and integrity in all we do. In 2023, we focused on sustainable procurement by crafting a new Supplier Code of Conduct, establishing a Human Rights Committee, and training 100% of our procurement employees, among other actions.
We collaborated with our suppliers to design a joint strategy for realizing our climate commitments and engaged with our customers to identify sustainability- focused best practices in research.
We are proud of the progress QIAGEN has made so far, and do not intend to relent. The actions we take today will shape the future of our planet and society. Let us work together to build a more sustainable business that not only serves our stakeholders but also contributes positively to the world.
Thierry Bernard, Chief Executive Officer
Environment | Social | Governance | Annex | Page 4 |
Our company
2023 sales
$1.97 billion
A global company with scale
16% 52%
Americas | ||
32% | EMEA | |
Asia-Pacific / Japan | ||
Balanced customer markets | Highly recurring revenues business | ||
53% | 47% | 88% | 12% |
Life Sciences | Instruments | |
Molecular Diagnostics | Consumables and Related Revenues | |
Market | Customers |
>$11 billion | >500,000 |
Total addressable market | Customers worldwide |
Environment | Social | Governance | Annex | Page 5 |
Our company
Our business
Our business - profile and business model
As a leading provider of Sample to Insight solutions, we realize our vision of making improvements in life possible by supporting our global customers across the molecular diagnostic and life science markets. Our products are used to advance science and improve outcomes for patients around the world. We are committed to being a sustainable business and consider the views of our stakeholders - customers, employees, authorities, regulators, suppliers, and shareholders - in how we operate. Through initiatives such as reducing plastics and developing products with a lower environmental impact, we uphold our commitment to sustainability throughout our business activities and product lifecycle. Details about our business, operating environment and products are included in the section Business and Operating Environment in the Annual Report, which is published on our webpage.
Building a sustainable business
Since 2017, we have focused on integrating sustainability throughout the entire value chain and aligning our vision with a sustainable business which includes reducing our impact on the environment and minimizing the carbon footprint of our products. Our key strategic sustainability activities target increasing the number of women in leadership positions, reducing our emissions, avoiding cyber security incidents, and ensuring a consistent 100% completion rate for new employee compliance trainings and the commitment of our strategic suppliers to sustainable improvement goals.
Global presence with a focus on the most attractive developed and emerging markets
Shipping product to | Direct sales in |
>170 | >30 | |
Countries | Countries | |
Our global and regional
headquarters | Global presence | |
Venlo, Global HQ | ||
Hilden, EMEA HQ | ||
Germantown, Americas HQ | ||
Shanghai, China HQ | ||
Singapore, Asia HQ |
Environment | Social | Governance | Annex | Page 6 |
Our company
2023 Achievements
Environmental
7%
plastic reduction from 2022
Goals
37%
of woman in leadership in 2024
Strategic suppliers further developed
towards climate goal achievement
Social
36%
of women in leadership
Governance
~8,000
compliance training courses completed
SBTi approved near-term and net-zero targets* | ||
2027 | 2030 | 2050 |
Scope 1 and 2 GHG emissions | Scope 1, 2 and 3 | |
67% | -42% | Net-zero |
of our suppliers by emission | Scope 3 GHG emissions | across the value chain |
with sustainable engagement | (business travel, use of sold | |
goals | products and end-of-life | |
treatment of sold products) | ||
-25% |
*from a 2020 base year
Environment | Social | Governance | Annex | Page 7 |
Our company
General approach to sustainability
Sustainability governance
Aligning the QIAGEN vision with sustainable business
QIAGEN plays a vital role in helping to advance our understanding about the building blocks of life - DNA, RNA, and proteins. Our products are used to advance science and improve outcomes for patients around the world. This is underscored by our vision of "making improvements in life possible", which extends to our commitment of being a sustainable business ensuring that we do not negatively impact our environment, community or society as a whole. We take into consideration the views of our stakeholders in making decisions on the way to operate our business. Our approach to sustainability is to consider our actual or potential positive and negative impacts throughout each area of our business. In line with our vision of making improvements in life possible, we have a commitment to deliver the best possible portfolio of product and services while leaving the smallest possible footprint on our planet. From whom we source to how we produce, we approach each step with the intention to do so in a sustainable way. We know our people are our most critical asset and we care about them - from their working environment to career development and opportunity. We aim to attract and retain talents that contribute to our vibrant workforce and our culture of empowerment.
Sustainability anchored in two-tier corporate governance structure
The Nomination & Environmental, Social, and Governance (ESG) Committee, a dedicated Supervisory Board Committee, oversees the strategy, development and performance measurements of our sustainability initiatives. The strength of the committee lies in the extensive leadership experience of its current members, as each one of them has served as either the CEO or CFO of publicly listed companies. (Refer to the Corporate Governance section of the Annual Report and our website for more details, including the Nomination & ESG Committee charter.) Their background equips them with a profound understanding of the intricate business implications associated with sustainability targets, the imperative need for effective risk management, and the comprehensive
reporting requirements spanning both financial and non-financial domains. The Nomination & ESG Committee reviews the operational activities of the Corporate ESG Committee, a cross-functional team with representatives from across the Company. The Corporate ESG Committee is led by our Head of ESG Strategy & Impacts Programs under the supervision of the Executive Committee. This Committee formulates and secures approval for our sustainability strategy and actively drives its implementation throughout the year. Additionally, a key responsibility of the Corporate ESG Committee is to inform the Audit Committee and Nomination & ESG Committee about new or updated regulatory requirements, such as the Corporate Sustainability Reporting Directive (CSRD), the EU Taxonomy and the German Supply Chain Act. In October 2023, the Corporate ESG Committee conducted a regulatory update with the Audit and Nomination & ESG Committees and instructed attendees on the relevant requirements from these three upcoming regulations. This update served to equip the Supervisory Board with the necessary information to guide their role in overseeing the effectiveness of internal controls and the risk management system pertaining to sustainability reporting. The Executive Committee receives updates on the progress of the implementation of the sustainability strategy and on regulatory changes on a quarterly basis while the Supervisory Board is informed of these updates at least twice a year. In 2023, the Corporate ESG Committee met with the Nomination & ESG Committee twice to review and approve the sustainability strategy and the implementation plan, including reporting.
The significance of sustainability within QIAGEN is firmly embedded in our culture and linked through the compensation system, wherein ESG objectives are incorporated into the annual Team Goals. These goals serve as the foundation for a substantial portion of variable short-term incentive compensation for our global workforce and the Managing Board. In acknowledgment of the paramount importance of sustainability, we have elevated the weight and influence of these objectives in line with our sustainability aspirations, a commitment that aligns with our broader promises on ESG matters.
Environment | Social | Governance | Annex | Page 8 |
Our company
Risk management and internal controls over sustainability reporting
Our risk management approach is discussed under section Risks and Risk Management in the Annual Report, available on our website. To ensure that newly established sustainability topics are integrated into the risk management approach, specialized teams were collaboratively formed in 2023 comprised of representatives from the owners of material topics and the ESG Reporting team. These teams included experts from global functions such as Accounting, ESG, U.S. Securities Exchange Commission (SEC) Reporting, and Corporate Communications. During the 2023 reporting process, provided guidance by these teams on process requirements was applied by all owners of material topics and documented accordingly, including applicable reviews.
Reporting boundaries
The basis of our Sustainability reporting is defined in the EU Non-financial Reporting Directive (2014) and the EU Corporate Sustainability Reporting Directive (in effect since 2024), including the EU Taxonomy (partially in effect since 2022), and the proposed EU Sustainability Reporting Standards (in effect since 2024). The Sustainability reporting has also been aligned with the guidelines of the Global Reporting Initiative (GRI) and has been prepared in accordance with the GRI Standards. We also take into account the relevant requirements of the Sustainability Accounting Standards Board (SASB) for the Medical Equipment & Supplies industry. Where possible, we follow the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD). The Annex contains the relevant indexes.
Committed to the Sustainable Development Goals
As a global company, QIAGEN supports the Sustainable Development Goals (SDGs) of the United Nations (UN). The SDGs identify starting points for policy- makers, businesses and private individuals worldwide to tackle the major challenges of our time - from resource consumption and global inequality to climate change. The 17 SDGs and the 169 targets were adopted by all UN member states in 2015 in what is termed the "Agenda 2030." Companies can make a major contribution to the implementation of the SDGs due to their influence on the environment and society in many ways - from production to distribution of products, the actions and behaviors of employees, and cooperations with partners, suppliers and customers along the supply chain. We are aware of this responsibility and want to make an impactful contribution to the SDGs that can be influenced by our business activities.
Looking at the impact of our business activities on sustainable development, we have identified five SDGs where QIAGEN can contribute the most:
- SDG 3 Good Health and Well Being
- SDG 5 Gender Equality
- SDG 8 Decent Work and Economic Growth
- SDG 12 Responsible Consumption and Production
- SDG 13 Climate Action
We value this alignment and the way our use of technology, resources and knowledge contributes to the United Nation's global mission of achieving the SDGs.
Environment | Social | Governance | Annex | Page 9 |
Our company
Validation of carbon emissions targets
Our carbon emissions targets have now been validated by the Science Based Targets initiative (SBTi), endorsing our ambition to honor the Paris Agreement's climate goals.
The SBTi is a global body that enables companies to set ambitious emissions reductions targets in line with the latest climate science. The initiative is a collaboration between the Carbon Disclosure Project (CDP), the United Nations Global Compact, the World Resources Institute (WRI) and the World Wide Fund for Nature (WWF), and one of the We Mean Business Coalition commitments. The SBTi defines and promotes best practice in science-based target setting, offers resources and guidance to reduce barriers to adoption,
Our material topics
In 2023, we focused on reviewing the material topics of our last materiality analysis conducted in 2022 and on aligning them with upcoming European regulatory requirements induced by the Corporate Sustainability Reporting Directive (CSRD). We assessed actual and potential impacts as well as financial risks and opportunities in relation to the management of QIAGEN´s material topics. Based on our assessment, we identified the following material topics:
Environment
Minimize carbon footprint | Reduce, replace and recycle plastic |
and independently assesses and approves companies' targets. We are seeking to achieve net-zero status by 2050 by cutting direct and indirect emissions throughout our operations. We disclose our strategy to meet our targets in the Environment chapter under the section Minimize carbon footprint.
Social
Employee attraction and development
Occupational health and safety
Customer satisfaction
Diversity & inclusion
Quality and product safety
Access to healthcare
Governance
Governance and compliance | Data and cyber security |
More detailed information in connection with the respective material topics is reported in this Sustainability Report in subsequent chapters.
Environment | Social | Governance | Annex | Page 10 |
Our company
Regular updates and information exchange
Nomination & ESG Committee
Executive Committee
Corporate ESG Committee
ESG goals
Environmental responsibility | Serving society | |||||||
Reduction | Implementation | Improving Access to Healthcare | ||||||
of our plastic | of short-term | and our customers' experiences | ||||||
footprint | climate strategy | Maintain compliant QIAGEN | ||||||
Quality Systems to assure safe and | ||||||||
effective QIAGEN Products | ||||||||
Investing in people | Ensuring business with integrity |
Fostering a positive work environment, | Implementation of compliance |
attract, develop and retain talent | program and supplier risk assessment |
and increase percentage of women | |
in leadership positions |
Material topics
Reduce, reuse | Minimize | Access to | Product | Customer | Diversity | Occupational | Employee | Data and | Governance |
and recycle plastic | carbon | healthcare | quality | satisfaction | and | health and | attraction | cyber security | and compliance |
footprint | inclusion | safety | and | ||||||
development |
Following the outcomes of the 2022 materiality analysis, we undertook a strategic reconfiguration of our Corporate ESG Committee, which was further refined in 2023. This restructuring served to enhance the coordination of individual topics under the oversight of global leaders appointed for each material aspect. These leaders assume responsibility for both crafting the strategy and translating it into tangible metrics, collaborating closely with their designated teams. In a series of subsequent workshops, and in conjunction with specialist departments, these global leaders conducted a thorough analysis of the maturity levels associated with each material topic. This analysis laid the foundation for the meticulous development of concrete roadmaps and action plans geared towards attaining our sustainability objectives and ensuring compliance with regulatory mandates. This strategic approach reflects our commitment to a comprehensive and systematic advancement in meeting our sustainability goals. In 2023, under the newly organized focus, the Corporate
ESG Committee maintained this commitment by reviewing action plans and prioritizing the nature and extent of the work depending on the maturity level of a material topic. Examples of this work included efforts to establish or enhance their management approach for handling identified risks. Additionally, they undertook actions such as finalizing the documentation of related processes and policies including formalizing standard operating procedures. The maturity of the material topics will be reviewed on an annual basis and revalidated against current sustainability regulations and their implications for our sustainability strategy and governance.
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Qiagen NV published this content on 12 June 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 June 2024 18:48:01 UTC.
