Sanofi

Sustainability strategy and accountability
Sanofi discloses its process for identifying and prioritising its most relevant sustainability impacts as well as the outcome of this process, in relation to its sustainability strategy. The company reports consistently against all its targets. It also provides evidence that its highest governance body has expertise regarding the company’s most material nature-related topics.

Lobbying
Sanofi discloses a list of trade associations of which it is a member wherever it operates.

Impact and dependencies assessment
Sanofi reports carrying out an assessment of its biodiversity footprint and associated risks. In 2021, it worked on identifying and analysing biodiversity dependencies using recognised frameworks, such as the Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services (IPBES). It supplements this analysis by using the Global Biodiversity Score methodology to quantify the extent to which its business puts pressure on biodiversity. The results are then used to compile biodiversity risk mapping for the company.

Ecosystem conversion and restoration
Sanofi has committed to protect the natural areas surrounding its operational sites. It discloses details and outcomes of ecosystem restoration projects in areas affected by its own operations or by its suppliers.

Resource exploitation and circularity
Sanofi discloses which organisms it directly exploits for commercial uses, including wild animal and plant species. The company discloses activities to improve soil health or agrobiodiversity in its production or sourcing practices.

Water
Sanofi demonstrates it is reducing water withdrawal in its own operations. It discloses a decrease in water pollution and regularly reports on the topic. It also discloses its processes for managing and monitoring discharge water quality.

Solid and air pollution
Sanofi is reducing the production of hazardous waste. It discloses the proportion of hazardous waste treated to reduce pollution compared to total waste, the hazardous waste diverted from disposal and the waste directed to disposal. It also reports some activities to reduce plastic use and waste in its own operations. In addition, it reports regularly on air quality parameters of emissions of harmful air pollutants.

GHG emissions
Sanofi has a target to reduce its scope 1 and 2 emissions by 55% by 2030 from the 2019 baseline and reports progress against the target. It also has a target to reduce scope 3 emissions by 14% by 2030 and reports progress against the target. The company’s scope 1, 2 and 3 emissions reduction targets are aligned with a 1.5-degree trajectory.

No leading practices were identified in the social inclusion and community impact area.

Sustainability strategy and accountability
While the company discloses some sustainability targets, no evidence was found that it has group-wide targets on key sustainability topics for the most material parts of its value chain based on the SBTN Sectoral Materiality Tool. The company reports that the board’s Appointments, Governance and CSR Committee ensures that corporate sustainability reporting (CSR) issues are given due consideration when developing and implementing the corporate strategy. However, the company has an opportunity to disclose which individuals, teams or committees within the company are responsible for the implementation of its sustainability strategy. The company discloses that since 2020, a specific individual CSR performance criterion has represented 15% of the CEO’s annual variable compensation package. However, it has an opportunity to disclose how it links performance criteria in senior executives’ remuneration policies to targets and objectives which cover nature, including biodiversity, and social issues.

Stakeholder engagement
The company does not disclose an overview of the issues raised during its stakeholder engagement activities. Nor does it disclose its process for engaging with stakeholder groups beyond its materiality assessment.

Lobbying
The company does not disclose a clear and detailed framework for assessing alignment of its trade associations with nature-positive policies. Nor does it report (potential) misalignment between the lobbying activities of its trade associations and nature-positive policies.

Impact and dependencies assessment
The company does not disclose any assessment of its impacts on nature, including biodiversity, in its supply chain. Moreover, it does not disclose any assessment of dependencies on nature of its upstream business relationships.

Key areas and species
The company does not disclose the locations that are in or adjacent to areas important for biodiversity within its own operations or those of its suppliers. Nor does it disclose species populations existing in or adjacent to its own locations or those of its suppliers. Finally, it does not disclose the status according to national and international conservation lists of species identified in its own locations.

Ecosystem conversion and restoration
The company does not have a commitment to ensure zero conversion. It does not disclose activities to achieve conversion-free supply chains or have time-bound targets to achieve conversion-free supply chains. The company does not disclose activities to minimise ecosystem conversion and is not committed to restoring ecosystems.

Resource exploitation and circularity
The company does not disclose its inputs, including its material footprint, nor does it report quantitatively on its group-wide circularity performance. The company does not have a target to improve soil health in its production or sourcing practices.

Water
The company does not disclose a current time-bound target to reduce water withdrawal across its own operations. The company does not report how much water is withdrawn for its own operations in water-stressed areas. The company does not provide sufficient evidence of engaging with upstream business relationships to reduce water withdrawal. The company does not disclose targets to reduce water pollution. Although the company has a policy on water stewardship, it has an opportunity to provide an explicit commitment to respect the right to water. The company discloses that depending on the conclusions of the environmental risk assessment and regulatory requirements, it’s action plan may include: an internal or external audit on water use, a water withdrawal and water consumption reduction plan, installation of additional in-line analyzers and instruments to increase monitoring, and track efficiency. However, it has an opportunity to describe how communities will be protected in the action plan.

Solid and air pollution
The company is not reducing the production of hazardous substances, and it does not commit to avoid developing or marketing new chemicals or products with SVHC (substance of very high concern) properties. The company is not reducing plastic use and waste in its own operations, nor does it report on the amount of plastic waste generated and proportions directed from or to disposal. The company does not report time-bound targets to reduce air pollutants across the most material parts of its value chain.

Invasive species
No evidence was found that the company identifies the activities that could lead to the introduction of invasive species in its own operations or in its value chain.

Safe, clean, healthy and sustainable environment
The company is not committed to respecting local communities’ right to a safe, clean, healthy and sustainable environment, and it does not track its actual or potential negative impacts on the health of local communities. The company is not committed to zero tolerance for acts of violence, threats, intimidation or judicial harassment committed against land and environmental rights defenders.

Indigenous Peoples’ and land rights 
The company does not disclose a commitment to respect Indigenous Peoples’ rights. Nor does it disclose its processes for identifying and recognising the rights of Indigenous Peoples when activities in its own operations may impact their rights, or how it obtains Indigenous Peoples’ free, prior and informed consent. The company does not disclose a commitment to respect ownership and use of land and natural resources and related legitimate tenure rights, as set out in the relevant part(s) of the VGGTs or the IFC Performance Standards. The company does not require its business relationships to have a process to identify legitimate tenure rightsholders, paying particular attention to vulnerable or marginalised tenure rightsholders, and to negotiate with them to provide adequate compensation.

The company describes the process for identifying its human rights risks and impacts in specific locations or activities covering its own operations. It also describes the process for identifying human rights risks and impacts in its business relationships. In addition, it describes its process(es) for assessing its human rights risks and discloses what it considers to be its salient human rights issues. The company describes its global system to take action to prevent, mitigate or remediate salient human rights issues, and this includes a description of how its global system applies to its supply chain. The company states that it engages with its stakeholders in the identification and assessment of its human rights risks, as part of its human rights due diligence process. However, it has an opportunity to disclose the categories of stakeholders whose human rights have been or may be affected by its activities. There is no evidence that the company provides examples of its engagement with stakeholders whose human rights have been or may be affected by its activities.

The company has a publicly available policy statement committing it to respect the health and safety of its own workers and expecting its suppliers to do the same. The company discloses that it is committed to compensating its workers based on fair market value. However, it has an opportunity to disclose if this fair pay is sufficient to maintain a decent standard of living for employees and their family. It also has an opportunity to disclose a time-bound target for paying all workers a living wage or that it has achieved paying all workers a living wage. The company states that its standard methodology for fee calculation ensures that an expert’s compensation is reasonable and reflects the fair market value of the service. However, the company has an opportunity to describe how it determines a living wage for the regions where it operates. The company describes how it works to support the payment of a living wage by its suppliers. While the company discloses the proportion of its total direct operations workforce covered by collective bargaining agreements, it states that monitoring only covers a percentage of the group. Further, while the company states that it encourages its suppliers to respect employees’ right to freedom of association and the right to collective bargaining, it has an opportunity to describe how it works to support the practices of its suppliers in this regard.

The company discloses a global tax strategy. It also discloses that it conducts risk-based anti-bribery due diligence on third parties to avoid or mitigate the risk of third-party corrupt conduct. However, it has an opportunity to explicitly disclose the process to identify its bribery and corruption risks and impacts in specific locations or activities covering its own operations. The company includes anti-bribery and anti-corruption clauses in its contracts with direct business relationships. The company outlines its approach to lobbying but has an opportunity to formalise its lobbying and political engagement approach in a public policy document. There is no evidence that the company has a publicly available policy statement that specifies that it does not make political contributions.