Company Name: Boehringer Ingelheim Shanghai Pharmaceuticals Co., Ltd.
Award Category: ESG Performance
Company Size: Large Business Group
Environment
Climate Change:
Boehringer Ingelheim is committed to achieving carbon neutrality in corporate operations by 2030. Since 2014, Boehringer Ingelheim Shanghai Pharmaceuticals Co., Ltd. (referred to as “BISPL”) has served as a pilot site for decarbonization within Boehringer Ingelheim globally. With our 2025 vision of “being the industry benchmark of Sustainable Development”, BISPL is the first pharmaceutical company in China reaching carbon neutrality (Scope 1 and 2) certified by TÜV Rheinland in 2022. BISPL has been verified as a carbon neutrality company in 2023 as well.
In 2014, BISPL reached peak carbon emissions and developed a “More Green Roadmap” for decarbonization. BISPL is delivering on decarbonization strategies by improving energy efficiency, using self-built photovoltaics, converting factory electricity to 100% green electricity, purchasing carbon credits, etc. Energy efficiency improvement contributed to 68% reduction of the site’s annual carbon emissions of more than 12,000 tons. Compared with peak year, energy efficiency increased by 77.01% when BISPL realized carbon neutrality in 2022. Decarbonization brings BISPL not only environmental achievements, but also financial benefits due to long-term cost-saving.
Sustainability is ingrained in the DNAs of BISPL. We implemented a “Good Idea Management” platform with incentive mechanism to collect suggestions from employees. Green ideas put into actions, focusing on eliminating single-use plastic, promoting recycling, and going paperless, etc. GREEN mindset is at the heart of our business decisions and daily operations, while influencing upstream and downstream along entire supply chain.
BISPL is always playing an active role in industry associations by sharing best practices. In partnership with China Energy Conservation Association, BISPL participated in the drafting of “Zero-Carbon Factory Assessment Specification Guidelines”, leveraging our expertise to shape common standards guiding manufacturing industry.
Natural Resources and Energy:
BISPL is committed to reducing operational waste to landfill and incorporating circular economy into business through following key initiatives:
Circular Economy: We integrate this principle into all our activities, fostering innovation, mitigating environmental impact, and reducing costs.
Green Chemistry: We design innovative processes helping reduce or eliminate the generation or usage of hazardous substances and waste.
Eco-design: By employing Life-cycle Assessment (LCA), we minimize negative impacts during the design or re-design phase, resulting in tangible benefits across the manufacturing, packaging, utilization, and disposal stages.
Waste Management: Following the 7R principles (Regulation, Recognize, Reduce, Reuse, Recycle, Recover, Refuse), we employ Plan-Do-Check-Act (PDCA) approach, aligned with the latest laws, and best practices, to establish a standardized zero-waste-to-landfill management system.
BISPL has carried out sequential energy conservation and carbon reduction projects to improve energy efficiency and make full use of waste energy, like LED lighting system, heat pump and three-dimensional heat pipe, etc.
In addition to self-built photovoltaics, BISPL moved ahead with green power transactions, realizing 100% renewable electricity.
BISPL adopted Real-time Carbon Emission Management System, allowing carbon monitoring and achieving instant zero carbon emission by purchasing green electricity and carbon credits directly on a real-time basis.
As always, BISPL holds various activities on environmental protection to encourage green behaviours. For example, "2022 Carbon Detective" is designed to promote low-carbon lifestyle. The event was a huge success, receiving over 1,000 check-ins of low-carbon action sharing.
Consequently, BISPL holds the distinction of being the first pharmaceutical company in China to obtain “Zero-Waste-to-Landfill” certification and leading the industry as the first pharmaceutical company to achieve carbon neutrality, as certified by TÜV Rheinland.
Prevention of Pollution:
BISPL formulates a completed system on pollution prevention and control, covering all our activities within site operations:
Green Chemistry: Drug manufacturing is known for its resource- and energy-intensive nature. We develop and optimize processes in Green Chemistry principle, an effective way to prevent waste and generate less hazardous chemical syntheses. “Enzyme Catalysis” is a typical case, which is a greener approach on enzyme-catalyzed reactions, targeting a block (chiral amine fragment) in KRAS inhibitors. Compared with common synthesis methods, it exhibits significantly better efficiency and specificity, milder reaction conditions and reduced waste generation.
Green Production: BISPL promotes “LEAN” to enhances productivity by eliminating unnecessary process and minimizing waste, resulting in low scrap rate. Collaborating with packaging carton suppliers, BISPL built a “packaging carton reuse system”. We identify used cartons that meet quality standard and then reuse them. This initiative resulted in a reduction of 28,578 packaging cartons consumed.
Plant Management (Water and Gas): Wastewater would be discharged after pre-treatment in site sewage station. The hanging film of sewage station was optimized to improve treatment efficiency and reduce pollutants discharged into downstream. To improve the efficiency of waste gas disposal, BISPL dynamically monitor exhaust gas pollutants at both inlet and outlet of the filter. The measured values of wastewater and waste gas from BISPL are close to the environmental background value.
In the year of 2023, “circular economy” is the theme of monthly EHS campaign, aiming to raise employee awareness of waste reduction. Furthermore, BISPL built a circular economy workstream to catalyze each department to integrate waste reduction into their daily business and routine. We aim to empower our staff to become environmental ambassadors.
Other Actions Taken for Environmental Protection:
BISPL has always been committed to sustainable development for generations and prioritized environmental protection measures. Typical cases related to biodiversity conservation are stated as follows:
Wastewater Management:
Drug residues in wastewater discharged from pharmaceutical production would generate a negative impact on environment and biodiversity. Therefore, a good water management system for pharmaceutical company should include a clear assessment of all the Active Pharmaceutical Ingredients (APIs) staying in wastewater throughout the entire drug production lifecycle. BISPL adopts appropriate wastewater treatment method to minimize potential negative impact from APIs. The municipal sewage treatment plant is the treatment terminal for BISPL wastewater, and the concentration of drug residue in wastewater discharged from the municipal sewage treatment plant would directly affect surface water. BISPL conducts environmental risk assessment on production wastewater with APIs, comparing the predicted no-impact concentration (PNEC) with the predicted environmental concentration (PEC). PEC/PNEC<1 indicates compliance. The result shows that the PEC of BISPL production wastewater is 10,000 times lower than PNEC.
Supplier Management:
BISPL has prioritized sustainability criteria in screening new suppliers. For Instance, all carton suppliers of BISPL select raw materials from forests certified by FSC (Forest Stewardship Council). FSC certified paper is made with log wood pulp from responsible and sustainable forests, allowing tracing back to the forest farm from which the raw material originates.
Social
HR Development and Engagement:
EHS is at the core of BISPL’s culture and compliance. BISPL established a people-orientated EHS management system. We optimize the system continuously:
Employee Health and Safety:
The indicators related to employee safety and health have been incorporated into BISPL's operational KPI system. Based on ISO 45001, we use the LEC methodology to identify risks and then offer regular employee training. According to the requirement of occupational health, we arrange physical examinations for employees and monitor harmful factors of occupational health for certain positions. In addition, as a pharmaceutical company, we regularly conduct API testing to ensure a safe and healthy working environment.
Employee Benefits:
BISPL has been verified as “Top Employer China” for 10 consecutive years till 2023. The total rewards framework consists of compensation, benefits, career development and work-life balance, covering well-rounded employee benefits. To ensure competitiveness, the framework is dynamically adjusted every year according to industry benchmarking. Furthermore, we conduct family coaching workshops, aiming to encourage employees to create more quality time and have a happier life.
Career Development:
BISPL established leadership competency model, backup plan, successor plan, all of which matching with position grades and 2 options for career ladder (management track or technical track). We encourage internal job rotation to provide employees with more career options. In addition, BISPL shaped a leadership culture with a training framework, ensuring employees have full capability to meet position criteria and then pursue further career development in the future.
Diversity, Equity and Inclusion:
As an independent family-owned business, BISPL establishes right values and culture to ensure that the organization remains vibrant to achieve long-term performance and serve for the purpose of “Transforming Lives for Generations”.
Equity:
In BISPL, "believing in the value of every individuals, and creating fair treatment and opportunities for everyone" is highly valued.
BISPL consists of 114 males and 112 females, with a 1:1 male-to-female ratio, an approximate ratio at all position grade as well. Senior management consists of both male and female.
All of our code of conducts, performance assessment, business operations and decision-making are based on the principles of fairness and transparency, ensuring equality of opportunity.
Diversity and Inclusion:
BISPL placed “diversity and inclusion” as one of the organizational culture elements.
In talent acquisition, there is no limitations in employees’ race, ethnicity and gender, etc.
We strongly believe that the best decisions are generated in a transparent process by diverse groups. We need diverse talents to come up with innovative ideas to better meet the evolving needs of our customers.
We strongly believe that the best decisions are generated in a transparent process by diverse groups. We need diverse talents to come up with innovative ideas to better meet the evolving needs of our customers.
Culture landing is from top to bottom in BISPL. Management team is always the role model of diversity, equity, and inclusion, while all the employees are incorporating the values into daily business routines.
Product Liability:
We adhere to the principle of " Value Through Innovation" and develop breakthrough therapies in areas of unmet medical need. All our products are first-in-class drugs with patent. We respect and protect intellectual property rights, delivering high-quality products to our customers. We help the local government to protect fair competition and market order. For instance, Boehringer Ingelheim wins patent infringement administrative adjudication against YiChang HEC ChangJiang Pharmaceutical Co., Ltd upon a patent for Trajenta. Effective protection of pharma patents will lay a solid foundation for encouraging companies to continue investing in R&D and bringing forward more innovative medicines.
In terms of product safety and quality control:
In product development phase, we believe in the principle of "quality by design", and our ultimate goal is “right first time”. In addition, to ensure product safety, we would conduct rich clinical trials of all our products before launch.
In product production phase, we formulate a series of SOPs to standardize operation behaviors of front-line employees in line with international GMP standards.
When product entering into market, we have completed systems in pharmacovigilance, product complaint and product recall, to have our customer feedback at the first time. We would investigate the issue in time and take corresponding measures according to the results of the investigation.
To improve customer experience and meet customized needs, we collect customer feedback proactively and follow up the optimization process through PDCA method.
As a result, we make quick response to market needs, timely deliver high-quality products to our customers. We target on-time-delivery-rate at 100% and reach the target every year. Customer satisfaction is much higher than industry average level.
In addition, we have other initiatives in this sector, like donating products to charity foundations, supporting stroke training and opening up potential markets to benefit more patients, etc.
Supply Chain:
BISPL takes ESG as a prerequisite of supplier management, collaborating with upstream and downstream to embrace ESG as well.
Introducing New Supplier:
To have a comprehensive evaluation, BISPL would conduct a series of actions like information collection, ESG capability validation, technical visit and sample tests before introducing a new supplier. Qualified supplier should accept BISPL‘s ESG code of conduct and then sign the ESG management agreement attached in the contract of cooperation.
Regular Training:
We set up a department dedicated to offering supplier training and audit annually, to ensure suppliers’ behaviours in line with the latest requirements of BISPL, including ESG code. In addition, suppliers must complete EHS training before providing on-site services.
SCM ESG Strategy:
According to ESG survey, BISPL would make risk assessment and define risk grading for each supplier. Supplier audit would be conducted with different frequencies according to the grading.
Interruption Prevention and Contingency Plan:
The prevention plan for auxiliary materials and packaging materials includes the establishment of safety stocks, supplier backup planning and close communications with suppliers regarding raw materials and production operations. In addition, BISPL established the SOP with Business Continuity Plans for corresponding scenarios listed below:
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Vender outbound/transport to customer not available
Vender unavailability of SAP/GBS
Community Engagement:
BISPL is always engaging in public welfare activities and encouraging employees to actively participate, fully supporting the development of public welfare in China.
Activities we host or participate recently are listed as below:
Turned wasted tank into things of value
Hold green seminar with surrounding enterprises to build a greener community
Serve as the vice chairman of the Pudong Green and Low-carbon Industry Alliance to lead green community development in Pudong
University-enterprise Cooperation:
To cultivate talents for society and pharmaceutical industry, BISPL reached university-enterprise cooperation with Fudan University and East China University of Science and Technology. We promote "German Vocational Training System" with the combination of classroom and business, theory and practice, learning and working. Since 2014, BISPL has received more than 1670+ cognition-focused interns and 210+ on-the-job interns. BISPL innovatively transformed rich management experience into professional course package and leadership course package to help students grow both in skills and leadership. In 2022, the general education textbook "Introduction to Quality Culture" complied by BISPL and East China University of Science and Technology was published. The textbook has been included in the municipal key courses of Shanghai universities.
Community Improvement:
In partnership with ClimateSeed, we funded the projects to improve the living environment of remote communities. For Instance, the Sichuan Poor Rural Household Biogas Project supported up to 1 million low-income rural households in Sichuan, with advanced biogas digesters and smoke-free biogas cookstoves instead of coal and firewood.
Corporate Governance
Governance Organizational and Mechanism:
BISPL, a wholly foreign-invested company in Shanghai, China, is owned by Boehringer Ingelheim which is a private family-owned company. BISPL is a not-listed company and committed to independence.
Organizational Structure:
BISPL established board of directors and senior management with clear role and responsibilities, which defined in job description and signed by each member of management team.
ESG Strategy:
Boehringer Ingelheim established a strategic framework of “Sustainable Development for Generations”. Guided by the strategy, BISPL is committed to sustainable development, lying in seven key areas: accountability, compliance, EHS&S management system, employees & public, business partners, environmental protection, and health & safety.
Risk Management：
The mechanism of risk management is integrated into the way we run our business, which is the foundation of generating long term economic and social value for our employees, stakeholder and the communities we serve.
Ethical Responsibility:
Drug safety attaches great importance to livelihood and public well-being. The company places ethics and compliance at the forefront of organizational culture and decision-making order. Employees and suppliers are required to sign a disclosure regarding corruption and bribery prevention regulations, as an attachment to the employment/cooperation contract. We defined clear ethical and compliance requirements for all stakeholders and continuously raises awareness through annual training.
Legal Liability:
As a manufacturing factory, BISPL pays high attention to legal and compliance in processes and production. We develop job instruction manuals for frontline employees to standardize the operation process. We establish SOP and guidance on information governance, which include information security, information management, data security, and privacy protection. There is no record of violations in spot audit by Shanghai Medical Products Administration.
Transparency and Disclosure
BISPL is always conducting transparency in operations management and strategy implementation. Through multiple channels (official website, intranet, social media, public mailbox, townhall, internal publications, etc.), we communicate with employees and stakeholders in a timely manner regarding performance, achievements and major projects, etc.
Innovation Sustainability:
As a not listed company, we make independent business decisions serving for long-term performance. We create “Value through Innovation” for our customers. All our products are first-in-class drugs, and the investment in R&D counts 20% of revenue in 2022. For instance, Spevigo, an innovative treatment option for rare skin disease — psoriasis, which is also the first product developed, registered, approved simultaneously with other global key markets, benefiting patients in China with zero time-lag.
Sustainable development has been at the core of our mission. We are dedicated to fostering a healthy, inclusive, and sustainable community. Boehringer Ingelheim forms a strategy of Sustainable Development – For Generations (SD4G), which is committed to bringing good health to people, contributing to better communities and creating a greener planet.
BISPL incorporated ESG into strategy planning with both short-term and long-term goals. BISPL’s 2025 ambition is “being the industry benchmark of Sustainable Development”. To achieve this, SD4G program is always on the list of site annual strategy priority with clear planning in actions, timeline, milestone and results.
In addition to the annual strategic program, BISPL is always encouraging ESG principles in all we do, which leads to greater overall performance in cost-saving, social welfare, environmental protection and winning people, etc. Sustainable development is embedded in BISPL’s daily operations, which helps generate long-term economic and social value for the company, stakeholders, employees, and the communities we serve.
Extra Points
ESG / Sustainability / CSR reports, e.g.:
Sustainable Development Report:
https://www.boehringer-ingelheim.cn/bipdf/kechixufazhanbaogao2023
ESG Verification or Certification:
Carbon Neutrality Certification
3-star Zero-waste-to-landfill Management System Certification
China National Green Plant
Shanghai Zero Carbon Plant
ISO450012018 - Occupational Health and Safety Management System Certification
ISO140012015 - Environmental management System Certification
Responsive to or engaged in ESG Initiatives / Standards / Goals:
BI achieved SBTI and CDP B- in 2022
Other ESG related awards, e.g. TOP ESG Employer:
“Top Employer China” for 10 consecutive years till 2023
