Elanco Releases 2022 Environmental, Social and Governance Report, Demonstrating Sustainability Progress in Internal Operations and Customer Collaborations

Rhea-AI Summary

Elanco Animal Health Incorporated (NYSE:ELAN) released its 2022 ESG Report, demonstrating commitment to ESG-related topics across its Healthy Purpose™ Pillars. The report highlights impactful initiatives such as reducing CO2e emissions by 7.2 million metric tons through the use of Rumensin™ and advancing diversity, equity, and inclusion efforts.

Positive

• Elanco's commitment to ESG-related topics across its Healthy Purpose™ Pillars demonstrates a strong focus on environmental sustainability and animal welfare, which aligns with growing consumer demand for ethical and sustainable products.
• The reduction of transportation and distribution emissions by more than 10% from the prior year reflects Elanco's proactive approach to minimizing its environmental footprint.
• The company's progress in increasing representation of women in leadership globally to 35.8% and People of Color in U.S. leadership to 17.4% at the end of 2022 showcases Elanco's commitment to diversity, equity, and inclusion.

Negative

• None.

GREENFIELD, Ind.--(BUSINESS WIRE)-- Elanco Animal Health Incorporated (NYSE:ELAN) today released its 2022 Environmental, Social and Governance (ESG) Report highlighting enhanced governance, transparency and progress measurements.

Elanco’s commitment to important ESG-related topics is demonstrated across its four interconnected Healthy Purpose™ Pillars: Healthier Animals, Healthier People, Healthier Planet and Healthier Enterprise. Through numerous internal initiatives and external collaborations within each pillar, Elanco is working to positively impact global concerns such as food security and nutrition, human health and well-being, and environmental sustainability.

“Healthy animals are essential for a healthy world. This belief is embedded in our vision – Food and Companionship Enriching Life – and is the anchor to Elanco's approach to ESG-related matters and advancing our sustainability goals," said Jeff Simmons, President and CEO Elanco. "This year's report includes examples of our impact as a global organization. For instance, between 2020 and 2022, we've helped beef and dairy customers avoid an estimated 7.2 million metric tons of CO₂e emissions by using Rumensin™ – roughly equivalent to taking 1.6 million¹ passenger cars off the road for a year. Additionally, through multiple logistics initiatives, in 2022 we reduced transportation and distribution emissions more than 10% from the prior year.”

Along with this year’s report, the company introduced a collection of supporting issue briefs containing meaningful oversight and procedural disclosures for leading ESG issues and enhanced performance metrics demonstrating Elanco’s ongoing commitment to transparency.

Key highlights from Elanco’s 2022 ESG Report:

Healthier Animals: Helping pets and farm animals live healthy, high-quality lives by continuously expanding our existing portfolio while identifying new and innovative animal care products, practices and services to support animal health and well-being because making life better for animals makes life better.

• Advanced four crucial innovations to improve the quality-of-life of pets, through the U.S. launch of Zorbium® for feline pain, Bexacat™ (bexagliflozin tablets) for feline diabetes, as well as conditional FDA approval for Varenzin-CA1 (molidustat oral suspension) for nonregenerative anemia in cats with chronic kidney disease and a conditional USDA license for our Canine Parvovirus Monoclonal Antibody.
• Conducted more than 400 training sessions for farmers and ranchers, including topics such as animal care, management and animal welfare.
• Managed several data platforms through Elanco Knowledge Solutions (EKS) to help customers track leading livestock health and quality indicators accounting for approximately 40% of the U.S. beef industry, approximately 3% of U.S. dairy cows and more than 11,000 broiler farms globally.

Healthier People: Improving lives and livelihoods by promoting animal companionship and enabling healthier and more sustainable meat, milk, fish and egg production.

• Made progress combating antimicrobial resistance by receiving approval for the salmonella vaccine AviPro™ Salmonella Duo in Thailand.
• Supported small-scale livestock producers through our shared-value initiatives by:
  • Concluding the East Africa Growth Accelerator (EAGA) initiative, supporting and enhancing the agricultural productivity of more than 273,000 small-scale producers between 2017 and 2022.
  • Launching the Managing Animal Health and Acaricides for a Better Africa (MAHABA) initiative, a collaboration between Elanco and The Global Alliance for Livestock Veterinary Medicine (GALVmed), to provide training on tick-borne diseases, integrated tick management and responsible use of acaricides to small-scale cattle producers in Uganda and small-scale cattle and poultry producers in Nigeria.

Healthier Planet: Minimizing the company’s environmental footprint while leveraging product and service innovations to help stakeholders advance their sustainability efforts.

• Expanded the reporting boundary for Scope 1 and 2 emissions to include all sites for which Elanco has complete operational control.
• Completed a comprehensive analysis of 2021 and 2022 Scope 3 greenhouse gas (GHG) emissions and commenced reporting.
• Sourced approximately 12% of electricity from renewable sources in 2022, delivering significant progress on the company’s goal of 100% renewable electricity by 2030.
• Supported reduced customer emissions in livestock production:
  • Helped customers collectively avoid an estimated 7.2 million metric tons of CO₂e emissions through the use of Rumensin between 2020 and 2022 – approximately 33% attainment toward a goal to help Elanco customers avoid 21 million metric tons of GHG emissions from their farms by 2030.
  • Established a partnership with DSM for exclusive rights to manufacture and sell Bovaer® in the U.S., a product to reduce enteric methane emissions by approximately 30% for dairy cows and even higher percentages for beef cattle. Elanco continues to have a path toward FDA authorization in the first half of 2024.

Healthier Enterprise: Growing Elanco’s business with integrity and excellence with respect for all stakeholders, fostering an inclusive culture where employees can make a difference – encouraging ownership, growth and well-being.

• Advanced diversity, equity and inclusion strategy, programs and expectations, including:
  • Increased representation of women in leadership globally to 35.8% at the end of 2022.
  • Increased representation of People of Color in U.S. leadership to 17.4% at the end of 2022.
  • Achieved approximately 20% employee participation in at least one Employee Resource Group (ERG).
• Supported local communities with more than 12,800 documented hours of employee volunteerism benefitting causes worldwide, valued at approximately $400K.
• Donated more than $4M in combined corporate, foundation and employee charitable and community giving – benefiting more than 350 community organizations.

For details on the company’s ESG disclosures, policies, programs and initiatives, visit elanco.com/en-us/sustainability.

ABOUT ELANCO

Elanco Animal Health Incorporated (NYSE: ELAN) is a global leader in animal health dedicated to innovating and delivering products and services to prevent and treat disease in farm animals and pets, creating value for farmers, pet owners, veterinarians, stakeholders and society as a whole. With nearly 70 years of animal health heritage, we are committed to helping our customers improve the health of animals in their care, while also making a meaningful impact on our local and global communities. At Elanco, we are driven by our vision of Food and Companionship Enriching Life and our Elanco Healthy Purpose– all to advance the health of animals, people, the planet and our enterprise. Learn more at www.elanco.com

¹ Estimated equivalency calculated via the U.S. EPA Greenhouse Gas Equivalencies Calculator, Greenhouse Gas Equivalencies Calculator | US EPA

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Investor Contact

Kathryn Grissom

+1.317.273.9284

kathryn.grissom@elancoah.com

Media Contact

Colleen Parr Dekker

+1.317.989.7011

colleen.dekker@elancoah.com

Source: Elanco Animal Health Incorporated

FAQ

What is Elanco Animal Health Incorporated (NYSE:ELAN) 2022 ESG Report about?

Elanco's 2022 ESG Report highlights its commitment to ESG-related topics across its Healthy Purpose™ Pillars, focusing on environmental sustainability, animal welfare, and diversity, equity, and inclusion efforts.

How did Elanco reduce CO2e emissions?

Elanco helped customers avoid an estimated 7.2 million metric tons of CO2e emissions through the use of Rumensin™ between 2020 and 2022, reflecting its proactive approach to minimizing its environmental footprint.

What progress did Elanco make in diversity, equity, and inclusion?

Elanco increased representation of women in leadership globally to 35.8% and People of Color in U.S. leadership to 17.4% at the end of 2022, showcasing its commitment to diversity, equity, and inclusion.