Teva’s Ambitious Climate Targets Externally Validated by the Science Based Targets initiative (SBTi)

Rhea-AI Summary

Teva Pharmaceutical Industries Ltd. (NYSE: TEVA) announced that its greenhouse gas (GHG) emission reduction targets have been approved by the Science Based Targets initiative (SBTi). These targets aim for a 46% reduction in absolute scope 1 and 2 GHG emissions by 2030 and a 25% reduction in absolute scope 3 emissions. The initiative aligns with a 1.5°C climate pathway. Teva's sustainable financing strategy includes a $5 billion sustainability-linked bond, the largest in its sector. The company emphasizes the connection between health and environmental sustainability as part of its corporate social responsibility.

Positive

• GHG emission reduction targets approved by the Science Based Targets initiative.
• Targets include a 46% reduction in scope 1 and 2 emissions by 2030.
• Incorporation of sustainability targets into $5 billion sustainability-linked bond.

Negative

• Risks associated with achieving set sustainability targets.
• Potential compliance issues with environmental regulations.

TEL AVIV, Israel--(BUSINESS WIRE)-- Teva Pharmaceutical Industries Ltd. (NYSE and TASE: TEVA) announced today that its targets to reduce greenhouse gas (GHG) emissions have been approved by the Science Based Targets initiative (SBTi), providing external validation of the Company’s ambitious commitments to minimize its environmental footprint.

As one of the world's largest manufacturers of generic medicines, Teva makes treatments more affordable and accessible - reaching nearly 200 million patients every day. With its vast global presence, the Company views its decarbonization activities as an opportunity to make a significant impact on the environment.

The targets validated by SBTi are to reduce absolute scope 1 and 2 GHG emissions by 46% by 2030 (vs. 2019), aligning to a 1.5°C pathway, and reducing absolute scope 3 GHG emissions by 25% by 2030 (vs. 2020), aligning to a well-below 2°C pathway.

Scope 1 and 2 target is integrated into Teva’s financing strategy, as part of the Company’s $5 billion sustainability-linked bond, which was the largest of its kind from any sector at the time of issuance and the first ever issued by a generic medicines company.

“The health of our planet is inherently linked to the health of those who inhabit it, and health is what we do at Teva,” said Amalia Adler-Waxman, Senior Vice President, Global Head, ESG and Head of Corporate Affairs of International Markets at Teva. “Our ambitious targets guide us in doing our part to promote a healthier, more sustainable future, and with SBTi’s validation, we have confirmation that they are science-based and aligned with global goals to combat climate change.”

Protecting the environment is part of Teva’s environmental, social and governance (ESG) strategy, and inherent to the Company’s culture. Progress toward these goals is a result of efforts across Teva’s business, such as converting some manufacturing sites to 100% renewable electricity, implementing energy efficiency projects, introducing low-carbon truck fleets and electric vehicles, recycling water and making office catering and canteen services more sustainable.

Teva will continue to share progress against its environmental targets and externally verify its performance in the Company’s annual ESG Progress Report.

About Teva

Teva Pharmaceutical Industries Ltd. (NYSE and TASE: TEVA) has been developing and producing medicines to improve people’s lives for more than a century. We are a global leader in generic, biosimilar and innovative medicines with a portfolio consisting of over 3,500 products in nearly every therapeutic area. Around 200 million people around the world take a Teva medicine every day, and are served by one of the largest and most complex supply chains in the pharmaceutical industry. Along with our established presence in generics, we have significant innovative research and operations supporting our growing portfolio of innovative medicines and biopharmaceutical products. Learn more at www.tevapharm.com.

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are based on management’s current beliefs and expectations and are subject to substantial risks and uncertainties, both known and unknown, that could cause our future results, performance or achievements to differ significantly from that expressed or implied by such forward-looking statements. Important factors that could cause or contribute to such differences include risks relating to: our ability to impact and effectively execute on our social, economic, environment and governance related strategies and goals; environmental risks; failure to comply with applicable environmental laws and regulations worldwide; our ability to satisfy the targets set forth in our sustainability-linked senior notes and in other sustainability-linked financing instruments that we may issue; the impact of ESG issues on our business; and consequences of climate change; our ability to successfully compete in the marketplace; our substantial indebtedness, which may limit our ability to incur additional indebtedness, engage in additional transactions or make new investments; our business and operations in general; the effects of reforms in healthcare regulation and reductions in pharmaceutical pricing, reimbursement and coverage; compliance, regulatory and litigation matters, including: failure to comply with complex legal and regulatory environments; increased legal and regulatory action in connection with public concern over the abuse of opioid medications and our ability to obtain sufficient participation of plaintiffs for the proposed nationwide settlement to take effect; scrutiny from competition and pricing authorities around the world, including our ability to successfully defend against the U.S. Department of Justice criminal charges of Sherman Act violations; other financial and economic risks, including: our exposure to currency fluctuations and restrictions as well as credit risks; the impact of other macroeconomic developments such as rising inflation and geopolitical conflicts including the ongoing conflict between Russia and Ukraine; and other factors discussed in this press release, in our Quarterly Report on Form 10-Q for the third quarter of 2022 and in our Annual Report on Form 10-K for the year ended December 31, 2021, including in the sections captioned "Risk Factors” and “Forward Looking Statements.” Forward-looking statements speak only as of the date on which they are made, and we assume no obligation to update or revise any forward-looking statements or other information contained herein, whether as a result of new information, future events or otherwise. You are cautioned not to put undue reliance on these forward-looking statements.

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IR

United States

Ran Meir

(267) 468-4475

Israel

Yael Ashman

972 (3) 914-8262

PR

United States

Kelley Dougherty

(973) 658-0237

Israel

Eden Klein

972 (3) 906-2645

Source: Teva Pharmaceutical Industries Limited

FAQ

What GHG emissions reduction targets did Teva set?

Teva aims to reduce absolute scope 1 and 2 GHG emissions by 46% and scope 3 emissions by 25% by 2030.

When were Teva's GHG targets approved by SBTi?

Teva's targets were approved recently, as announced in their press release.

What is the significance of Teva's sustainability-linked bond?

Teva's $5 billion sustainability-linked bond is the largest of its kind in any sector, integrating GHG reduction targets into its financing strategy.

How does Teva plan to achieve its sustainability goals?

Teva plans to convert manufacturing sites to renewable energy and implement energy efficiency projects, among other initiatives.

Why are Teva's emissions reduction targets important?

These targets are seen as essential for promoting a healthier planet and align with global efforts to combat climate change.