The CSR strategy at Sanofi: our materiality approachMatérialité RSE Sanofi – Matinée Comité 21 - 11 juin 2014 |1. 2 SANOFI AT A GLANCE Matérialité RSE Sanofi – Matinée Comité

The CSR strategy at Sanofi: our materiality approachDidier Terrolle – Associate Vice-President, CSR Excellence

Matérialité RSE Sanofi – Matinée Comité 21 - 11 juin 2014 | 1

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SANOFI AT A GLANCE

Matérialité RSE Sanofi – Matinée Comité 21 - 11 juin 2014

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Information of December 31st 2013

OUR GROUP ●We are a global healthcare company engaged in the research, development, manufacturing and marketing of healthcare solutions. present

in more than 100

countries

more than

110 000employees

A diversifiedoffer

of pharmaceuticals, vaccines and innovative

therapeutic solutions

112Industrial sitesin 41 countries

R&DA major biopharmacy

player

• 45% of revenues generated by biologics

• 80% of developmentprojects are biologics

€33 bn*

In sales in 2013

* €32,951 M

SANOFI AT A GLANCE


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OUR GROWTH PLATFORMS

Diabetes solutions

Emerging markets

Vaccines

Consumer Healthcare

Animal Health

Genzyme

Other Innovative Products


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CSRSTRATEGYAT SANOFI


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Addressing the right CSR issues

CSR at the level of a multinational healthcare company… roughly 50 topics to address…

Where shall I begin ?


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Materiality of CSR issues

While a company’s CSR department may address more than 50 economic, social and environmental issues, only some of them have a strong potential impact on the Group business (Material Issues), and thus will become CSR priorities for the company.

Stak

ehol

der I

mpo

rtan

ce

Business Success

Assessing materiality:• Each issue is evaluated based on its

importance to the business (x-axis) and its importance to stakeholders (y-axis)

• Company interviews inform importance to business success

• External sources—stakeholder interviews, surveys, rating organizations—determine importance to stakeholders

• Issues of great importance to business AND stakeholders are highlighted as priorities in the top-right quadrant


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List of CSR issues specific to Sanofi

1. Capacity Building (CB)2. Intellectual property (IP)3. Philanthropy (Ph)4. Pricing - Affordability -

Pricing transparency (Pr)5. R&D: Research in unmet

medical needs (RD)6. Relationships with patient

associations (PA)7. Brand management and

promotion (EM)8. Bribery and corruption

(BC)9. Competitive

behavior/practices (CBP)10.Corporate governance

and accountability (Go)11.Distribution of the

Group's revenue (Re)12.Lobbying and political

contributions (Lo)13.Risk & Crisis Prevention

and Management (RC)

14. Implementation of process improvement to reduce the impact of manufacturing to the environment (DM)

15.Emissions to water other than PIE (EW)

16.Greenhouse gases (GHG)17.Non-Greenhouse gases

(NGHG) 18.Soils pollution (SP)19.Humanitarian and

solidarity programs (HP)20.Bioethics & innovative

technology (BE)21.Ethics and transparency in

clinical trials (ECT)22.Fight against biopiracy

(BP)23.Use of laboratory animals

(LA)24.Occupational health and

safety (HS)25.Work Life Balance and

wellbeing (WLB)

26. Innovation management, processes and tools (IM)

27. Innovation outcomes : cost savings, product portfolio… (IO)

28.Continuity of supply -Pandemic Preparedness (CS)

29.Counterfeit drugs (CD)30.Patient information (incl

labelling) (PI)31.Pharmacovigilance (PC)32.Product quality (PQ)33.Biological waste from

patients / animals (PBW)34.Destruction of

unused/expired medicines (PUM)

35.Release from industrial sites in water, soils (PRS)

36.Responsibility in suppliers selection & management (RP)

37.Engagement & Dialogue with external stakeholders (SD)

38.Contribution to local economic development (LD)

39.Responsible use of Energy (UE)

40.Responsible use of natural substances (UNS)

41.Responsible use of Water (UW)

42.Hazardous & non hazardous waste management (WM)

43.Compensation and social benefits (Co)

44.Developing talent and careers (training) (DT)

45.Employee diversity, prevention of discrimination (Di)

46.Labor Practice (LP)47.Recruitment of talent (RT)48.Responsible management of

restructuring (MR)


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Why did we perform a new materialityanalysis in 2013 ?

● Check whether our CSR priorities should evolve to takeinto account new stakeholders expectations

● Capture new / emerging CSR issues

● Identify CSR topics in strong evolution regarding theirfuture importance for the business

● Involve more internal and external stakeholders

● Identify risks and opportunities

● Concentrate on fewer CSR priorities


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Update of the materiality analysis: overviewof the process


72 external stakeholders and 27 Sanofi Executives interviewed

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Materiality criteria defined by Sanofi


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Mapping of CSR issues


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6 new CSR priorities for 2014-2017

A smaller number of material issues, truly focused on Sanofi’s core business to sharpen our CSR strategy for increased impact

Stakeholder dialogue

Innovation

Access to Healthcare

Patient Safety

Ethics in R&DBusiness

Ethics

Talent Development

Pharmaceu-ticals in the environment

Patient Ethics People Planet

Comprehensive commitment, ad hoc projects and targeted communication are expected for this 6 priorities


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Following steps to ensure an effective implementation of the new priorities

• Endorsement by the CEO

• Communicate on the new CSR strategy to internal CSR network – 40 representatives from corporate functions– 6 CRS Region heads– About 60 country CSR heads

• Inform stakeholders that took part to the analysis about its outcomes • Develop CSR roadmapswith corporate functions CSR correspondents :

commitment, objectives and KPIs • Communicate externally the new CSR strategy: CSR report, CSR brochure,

meetings with rating agencies and investors, etc. • Comparison of Group risk mapping with materiality results

– Identify and analyse discrepancies– Adapt risk mapping when necessary in order to take into account assessments from

external stakeholders involved in the materiality process

• Organize CSR awards that address the 6 CSR priorities ongoing


THANK YOU

| 15Matérialité RSE Sanofi – Matinée Comité 21 - 11 juin 2014

Documents

The CSR strategy at Sanofi: our materiality approachMatérialité RSE Sanofi – Matinée Comité 21 - 11 juin 2014 |1. 2 SANOFI AT A GLANCE Matérialité RSE Sanofi – Matinée Comité