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We shared the results with all Lilly employees, developing a common language to help colleagues more easily relate to and understand one another’s individual and cultural experiences and perceptions.
The result has been a strong, companywide network of D&I champions, and a new appreciation of the value of different perspectives.
Building a more inclusive culture doesn’t happen by itself.
To that end, in and 2018, we created and implemented a set of initiatives called the People Strategy to address what we found in our research, and to further embed D&I into our internal talent systems and processes.
women globally and minorities in the United States.
It’s important to note that these aren’t quotas.
We are making progress by focusing on developing talented people from all backgrounds to further their careers.
For every open position at Lilly, we require a diverse pool of candidates and a diverse set of interviewers.
This helps us ensure that leaders look beyond their own comfort zone for the most qualified candidate available for each open role.
We also established new expectations for managers to lead more inclusively by valuing differences, recognizing and overcoming bias, and fostering a speak-up culture.
Our performance management process and Pulse survey to gauge employee feedback are measurements we use to hold our leaders accountable.
We’ve expanded training programs for leaders globally, to help them develop skills to support conscious inclusion and psychological safety.
Several thousand leaders have participated in one or both of these programs so far.
We’ve also begun a new cultural literacy program for all employees.
Top leaders have long sponsored employees who have the aspiration and the ability to lead at Lilly in the future.
This sponsorship initiative has been expanded to involve more senior leaders with high-potential employees from majority and minority groups with key talents, to help guide and support their careers.
We partner with advocacy groups, professional societies, community organizations, public and private healthcare administrators, and others to help reduce health disparities and to address the unique healthcare needs of all communities.
By understanding our employees’ journeys, we’re paving the way for more inclusion and career growth for everyone—and more innovation for our patients.
For example, some build plans that are related to gender, provincial, generational, and/or disability diversity.
And our Code of Business Conduct, The Red Book, also summarizes our approach to creating an inclusive, nondiscriminatory environment.
In American, and Asian employees played key leadership roles in our Employee Journeys.
In recent years, Lilly’s ERGs have been expanding into areas with a more direct business impact, becoming even more central to our company’s success.
For example, our ERGs frequently consult on marketing and workplace programs.
They also assist with corporate executive training programs on topics such as cultural awareness and inclusion.
When colleagues from other backgrounds are preparing for global assignments, ERG members help them understand the customs and culture of their destination country.
ERGs include members representing all levels of the company, and each ERG has a senior leader as an executive sponsor, someone who takes an active role in ERG events and activities.
This means that ERG members have interactions with leaders they might otherwise never meet, which offers opportunities for informal or formal mentoring relationships.
backgrounds to build leadership skills About one of our 11 ERGs, which include more than 75 chapters located at Lilly offices, research sites, and manufacturing operations around the world.
P A G E LGBTQ Employees at Lilly Lesbian, gay, bisexual, transgender, and queer (LGBTQ) people, and those with other sexual and gender identities, are an important segment of Lilly’s workforce.
In the United States, we are required to collect data on the race, gender, and ethnicity of our employees, as well as those who are military veterans or have disabilities— but there is no legal mandate for similar data collection on sexual orientation or gender identity.
Many leading U.S. employers and colleges have implemented voluntary LGBTQ self-identification programs.
We invite employees in the United States and the United Kingdom to voluntarily self-identify as lesbian, gay, bisexual, transgender, or queer (LGBTQ), or heterosexual.
We believe self-identification is a good practice that, where permitted by country-specific laws and culture, can help Lilly make progress toward a more diverse and inclusive workplace.
We believe that doing business with a diverse set of suppliers delivers value to the company and creates a competitive advantage for us by linking the fresh perspectives and nimble thinking of ethnically diverse, women-owned, and/or small businesses to our internal business needs.
Diverse suppliers are defined as those with at least or someone who is LGBTQ.
In well as more than $530 million with more than 1,640 suppliers classified as small businesses.
During its last audit of Lilly in supplier diversity, which is the highest recognition possible.
VETERAN, LGBTQ AND SMALL BUSINESSES THROUGH ITS SUPPLIER DIVERSITY PROGRAM.
I O N Making medicines that help people live longer, healthier, more active lives requires the use of valuable resources, such as energy, water, and raw materials.
At Lilly, we believe that promoting a healthy environment, maintaining a safe workplace, and operating responsibly and in an environmentally sustainable manner are linked to our business and supported by our mission and values.
substances, to the administrators who manage complex regulatory responsibilities.
This section covers the broad range of our HSE activities, from our approach and management systems, to our work addressing environmental and safety issues across our value chain, to performance data and examples demonstrating our progress.
In 2018, Lilly scored a rating of A- on climate change and B on water from CDP, formerly the Carbon Disclosure Project.
D U C T L I F E C Y C L E Research and Development We consider environmental factors from the earliest stages of design and development.
We use the of green chemistry, environmental risk assessments, packaging manufacturing reviews, and an Environmental Development Review process to evaluate potential environmental impacts during the scale-up of human health pharmaceutical production to manufacturing levels. Materials and Natural Resources Our stakeholders, including customers, governments, and suppliers worldwide, are increasingly focused on the materials and chemicals used to make products.
We have a chemical management program and work to reduce our use of materials, water, and other natural resources when possible.
Manufacturing Our HSE committee oversees sustainability performance and compliance with applicable HSE regulations, policies, procedures, and standards while ensuring we continually measure, report, and reduce Lilly’s environmental impacts associated with our own as well as contract manufacturing organizations.
Materials, water, and energy, HSE management system and standards Product End-of-Life Due to patient safety considerations and medicine regulations, reuse and recycling are not applicable to our products.
We are working with stakeholders to ensure cost-effective approaches are available for product end-of-life disposal that balance environmental protection, patient privacy, legal compliance, and security.
In lost-time injuries, and motor vehicle collision rate.
Lilly has brief, principle-based policy statements that are implemented in two ways: through our global procedures, which describe basic principles and general expectations; and through our global standards, which provide auditable, detailed requirements.
administrative functions, who ensure good governance and oversee performance for HSE in those areas.
to eliminate or reduce the risk of injuries and illnesses.
Management Systems Our Management System Standard requires that all business areas, including manufacturing, research and development, affiliate locations, and general administrative offices, adhere to an HSE management system that is consistent with third-party standards such as the International Organization for Standardization (ISO) Series (OHSAS) 18001, and the American Chemistry Council’s Responsible Care Management System (RCMS®) standards.
Our global HSE management system is periodically reviewed by an independent, accredited auditor to ensure it conforms to the RCMS.
\| P A G E Lilly takes a broad approach to understanding and actively managing the risks and opportunities associated with HSE issues across the product life cycle.
Our green chemistry initiatives include developing manufacturing processes that use less- toxic chemical alternatives where feasible.
GLOBAL CHEMICAL MANAGEMENT Governments around the world and across many of the regions where we operate have developed chemical management legislation—such as the REACH regulation in the European Union (EU)—that requires companies to collect and register information about the chemicals they manufacture or use, unless those chemicals are exempt.
To address these concerns, Lilly has implemented a formal program and screening process to evaluate designated “chemicals of concern” throughout the research and development process.
This process identifies and addresses potential impacts arising from manufacturing, suggests process improvements, and facilitates learning as new medicines transition from the laboratory to the manufacturing facility.
high waste-to-mass ratios, and requires solvent- intensive purification systems.
Lilly microbiologist Jay Bolden is an expert in bacterial endotoxin detection—a process used both by Lilly and the entire pharmaceutical industry to ensure the safety of their products.
He never expected his hobby as a birder to intersect with a novel way to test for harmful bacteria in the lab.
Yet Jay has helped Lilly to forge a new path, and in the process, he has helped to protect a threatened marine species and the larger ecosystem that depends on it.
For each batch of injectable medicines and medical devices manufactured across the globe, companies must prove that they have been checked—and tested free of—potentially life-threatening endotoxins.
Water and raw materials used in manufacture must be tested as well.
Around the world, this process is repeated approximately year, the linchpin of quality testing for the pharmaceutical industry.
In this process, the humble horseshoe crab plays a vital role: its cloudy blue blood can be used to make an assay, known as LAL, that clots readily in the presence of endotoxins that could prove fatal if exposed to a person’s bloodstream or spinal fluid.
To satisfy demand, LAL manufacturers capture, bleed, and release an estimated seaboard of the United States.
Estimates of how many crabs die as a result are hard to pin down, with estimates ranging from five to 30 percent.
In Asia, manufacturers use local horseshoe crab populations to make an alternative variant of the testing assay, TAL, which is used mainly by pharmaceutical manufacturers in the region.
Most of the crabs harvested in Asia are ultimately killed after they are bled, and in listed the Asian tri-spine horseshoe crab as an endangered species.
Compounding adversities for the horseshoe crab are decades of overharvesting for use as eel and whelk bait, and fertilizer, not to mention devastating habitat loss linked to the commercial development of seashore communities and climate change impacts, including more intense storms and rising sea levels that threaten their spawning grounds.
In the Delaware Bay, home to the world’s largest population of spawning horseshoe crabs, the population has crashed—declining by over the past two decades.
As a keystone species, the crab is vital to area food webs, and its decline has adversely impacted many other animals, notably shorebirds that rely on consuming horseshoe crab eggs to complete their migrations.
At least one bird species that feeds on the crab’s eggs, the red knot, is now listed as threatened.
Working at Lilly, Jay had been aware of an alternative method to test for endotoxins using a synthetic alternative— recombinant factor C, or rFC—developed just over 20 years ago.
However, lacking an official entry in the United States Pharmacopeia (USP), and facing regulatory uncertainty in the eyes of health authorities, it required additional validation testing to prove safety for a successful FDA approval.
Across the industry there was reluctance to undertake this extra validation, as well as concerns about widespread access to the alternative test agent.
Jay began to wonder if he could make a difference.
He had seen his first red knot in the Delaware Bay in many birding adventures.
But now, the bird and its plight held more of a personal connection.
In Levin, one of the two scientists who discovered the LAL reaction in the first place, he recalled Dr. Levin saying that if ever LAL were ever to be unseated from its central role as the main endotoxin test agent, it would be because of the birding community.
The turning point came in horseshoe crab species has been in decline.
Concerned about potential future supply problems with LAL—and knowing that Lilly is committed to reducing the use of animals in research and testing wherever possible—Jay lobbied and won support from two governance committees at Lilly, getting permission to validate the rFC approach.
Lilly drew a line in the sand in 2016, applying the rFC test to all new products being developed internally.
We were the first company to submit an application for drug approval to the FDA—Emgality®—to prevent migraine headaches—where the final drug will be tested using rFC.
In a watershed moment, the FDA approved Emgality in approved for the market release using rFC.
Upon implementation of the rFC test across all Lilly manufacturing sites, on the order of several thousand horseshoe crabs will be saved in the first year and every year thereafter.
Jay hopes that the ripple effect will be much larger, if the broader pharmaceutical industry can be persuaded to adopt the rFC test as a more efficient and cost-effective approach that doesn’t require the ethical tradeoffs of harvesting live animals.
has provided more than $2 million in research grants.
The majority of Lilly’s direct environmental impacts are from the manufacturing of medicines.
Lilly launched an initial public offering (IPO) of Elanco Animal Health Incorporated in September Elanco in March 2019, making it an independent, publicly traded company.
Elanco was previously a division of Lilly, and data from Elanco operations is included in Lilly’s manufacturing data through immediately following the IPO.
Beginning in will adjust our environmental performance data baseline calculations to reflect the Elanco divestiture.
Since then, Lilly has completed initial design for a new nine-megawatt combined heat and power system at our Puerto Rico facility.
The project will improve our resiliency to severe weather events and our environmental performance.
ENERGY USE AND GREENHOUSE GAS EMISSIONS Lilly set aggressive targets for improving energy efficiency and thereby reducing our GHG emissions.
In addition to our Scope efforts, we monitor several categories of Scope 3 GHG emissions and are committed to expanding the scope and quality of related data and disclosures.
In CDP, formerly known as the Carbon Disclosure Project, recognized our efforts with a score of A-, which is considered leadership level. Goals and Trends in 2018 Lilly’s 2020 goal is to improve both our energy efficiency and Scope 1 and Scope 2 GHG emissions intensity, measured per unit of site space, by 20 percent as compared to our 2012 baseline.

We shared the results with all Lilly employees, developing a common language to help colleagues more easily relate to and understand one another’s individual and cultural experiences and perceptions.

The result has been a strong, companywide network of D&I champions, and a new appreciation of the value of different perspectives.

Building a more inclusive culture doesn’t happen by itself.

To that end, in and 2018, we created and implemented a set of initiatives called the People Strategy to address what we found in our research, and to further embed D&I into our internal talent systems and processes.

women globally and minorities in the United States.

It’s important to note that these aren’t quotas.

We are making progress by focusing on developing talented people from all backgrounds to further their careers.

For every open position at Lilly, we require a diverse pool of candidates and a diverse set of interviewers.

This helps us ensure that leaders look beyond their own comfort zone for the most qualified candidate available for each open role.

We also established new expectations for managers to lead more inclusively by valuing differences, recognizing and overcoming bias, and fostering a speak-up culture.

Our performance management process and Pulse survey to gauge employee feedback are measurements we use to hold our leaders accountable.

We’ve expanded training programs for leaders globally, to help them develop skills to support conscious inclusion and psychological safety.

Several thousand leaders have participated in one or both of these programs so far.

We’ve also begun a new cultural literacy program for all employees.

Top leaders have long sponsored employees who have the aspiration and the ability to lead at Lilly in the future.

This sponsorship initiative has been expanded to involve more senior leaders with high-potential employees from majority and minority groups with key talents, to help guide and support their careers.

We partner with advocacy groups, professional societies, community organizations, public and private healthcare administrators, and others to help reduce health disparities and to address the unique healthcare needs of all communities.

By understanding our employees’ journeys, we’re paving the way for more inclusion and career growth for everyone—and more innovation for our patients.

For example, some build plans that are related to gender, provincial, generational, and/or disability diversity.

And our Code of Business Conduct, The Red Book, also summarizes our approach to creating an inclusive, nondiscriminatory environment.

In American, and Asian employees played key leadership roles in our Employee Journeys.

In recent years, Lilly’s ERGs have been expanding into areas with a more direct business impact, becoming even more central to our company’s success.

For example, our ERGs frequently consult on marketing and workplace programs.

They also assist with corporate executive training programs on topics such as cultural awareness and inclusion.

When colleagues from other backgrounds are preparing for global assignments, ERG members help them understand the customs and culture of their destination country.

ERGs include members representing all levels of the company, and each ERG has a senior leader as an executive sponsor, someone who takes an active role in ERG events and activities.

This means that ERG members have interactions with leaders they might otherwise never meet, which offers opportunities for informal or formal mentoring relationships.

backgrounds to build leadership skills About one of our 11 ERGs, which include more than 75 chapters located at Lilly offices, research sites, and manufacturing operations around the world.

P A G E LGBTQ Employees at Lilly Lesbian, gay, bisexual, transgender, and queer (LGBTQ) people, and those with other sexual and gender identities, are an important segment of Lilly’s workforce.

In the United States, we are required to collect data on the race, gender, and ethnicity of our employees, as well as those who are military veterans or have disabilities— but there is no legal mandate for similar data collection on sexual orientation or gender identity.

Many leading U.S. employers and colleges have implemented voluntary LGBTQ self-identification programs.

We invite employees in the United States and the United Kingdom to voluntarily self-identify as lesbian, gay, bisexual, transgender, or queer (LGBTQ), or heterosexual.

We believe self-identification is a good practice that, where permitted by country-specific laws and culture, can help Lilly make progress toward a more diverse and inclusive workplace.

We believe that doing business with a diverse set of suppliers delivers value to the company and creates a competitive advantage for us by linking the fresh perspectives and nimble thinking of ethnically diverse, women-owned, and/or small businesses to our internal business needs.

Diverse suppliers are defined as those with at least or someone who is LGBTQ.

In well as more than $530 million with more than 1,640 suppliers classified as small businesses.

During its last audit of Lilly in supplier diversity, which is the highest recognition possible.

VETERAN, LGBTQ AND SMALL BUSINESSES THROUGH ITS SUPPLIER DIVERSITY PROGRAM.

I O N Making medicines that help people live longer, healthier, more active lives requires the use of valuable resources, such as energy, water, and raw materials.

At Lilly, we believe that promoting a healthy environment, maintaining a safe workplace, and operating responsibly and in an environmentally sustainable manner are linked to our business and supported by our mission and values.

substances, to the administrators who manage complex regulatory responsibilities.

This section covers the broad range of our HSE activities, from our approach and management systems, to our work addressing environmental and safety issues across our value chain, to performance data and examples demonstrating our progress.

In 2018, Lilly scored a rating of A- on climate change and B on water from CDP, formerly the Carbon Disclosure Project.

D U C T L I F E C Y C L E Research and Development We consider environmental factors from the earliest stages of design and development.

We use the of green chemistry, environmental risk assessments, packaging manufacturing reviews, and an Environmental Development Review process to evaluate potential environmental impacts during the scale-up of human health pharmaceutical production to manufacturing levels. Materials and Natural Resources Our stakeholders, including customers, governments, and suppliers worldwide, are increasingly focused on the materials and chemicals used to make products.

We have a chemical management program and work to reduce our use of materials, water, and other natural resources when possible.

Manufacturing Our HSE committee oversees sustainability performance and compliance with applicable HSE regulations, policies, procedures, and standards while ensuring we continually measure, report, and reduce Lilly’s environmental impacts associated with our own as well as contract manufacturing organizations.

Materials, water, and energy, HSE management system and standards Product End-of-Life Due to patient safety considerations and medicine regulations, reuse and recycling are not applicable to our products.

We are working with stakeholders to ensure cost-effective approaches are available for product end-of-life disposal that balance environmental protection, patient privacy, legal compliance, and security.

In lost-time injuries, and motor vehicle collision rate.

Lilly has brief, principle-based policy statements that are implemented in two ways: through our global procedures, which describe basic principles and general expectations; and through our global standards, which provide auditable, detailed requirements.

administrative functions, who ensure good governance and oversee performance for HSE in those areas.

to eliminate or reduce the risk of injuries and illnesses.

Management Systems Our Management System Standard requires that all business areas, including manufacturing, research and development, affiliate locations, and general administrative offices, adhere to an HSE management system that is consistent with third-party standards such as the International Organization for Standardization (ISO) Series (OHSAS) 18001, and the American Chemistry Council’s Responsible Care Management System (RCMS®) standards.

Our global HSE management system is periodically reviewed by an independent, accredited auditor to ensure it conforms to the RCMS.

| P A G E Lilly takes a broad approach to understanding and actively managing the risks and opportunities associated with HSE issues across the product life cycle.

Our green chemistry initiatives include developing manufacturing processes that use less- toxic chemical alternatives where feasible.

GLOBAL CHEMICAL MANAGEMENT Governments around the world and across many of the regions where we operate have developed chemical management legislation—such as the REACH regulation in the European Union (EU)—that requires companies to collect and register information about the chemicals they manufacture or use, unless those chemicals are exempt.

To address these concerns, Lilly has implemented a formal program and screening process to evaluate designated “chemicals of concern” throughout the research and development process.

This process identifies and addresses potential impacts arising from manufacturing, suggests process improvements, and facilitates learning as new medicines transition from the laboratory to the manufacturing facility.

high waste-to-mass ratios, and requires solvent- intensive purification systems.

Lilly microbiologist Jay Bolden is an expert in bacterial endotoxin detection—a process used both by Lilly and the entire pharmaceutical industry to ensure the safety of their products.

He never expected his hobby as a birder to intersect with a novel way to test for harmful bacteria in the lab.

Yet Jay has helped Lilly to forge a new path, and in the process, he has helped to protect a threatened marine species and the larger ecosystem that depends on it.

For each batch of injectable medicines and medical devices manufactured across the globe, companies must prove that they have been checked—and tested free of—potentially life-threatening endotoxins.

Water and raw materials used in manufacture must be tested as well.

Around the world, this process is repeated approximately year, the linchpin of quality testing for the pharmaceutical industry.

In this process, the humble horseshoe crab plays a vital role: its cloudy blue blood can be used to make an assay, known as LAL, that clots readily in the presence of endotoxins that could prove fatal if exposed to a person’s bloodstream or spinal fluid.

To satisfy demand, LAL manufacturers capture, bleed, and release an estimated seaboard of the United States.

Estimates of how many crabs die as a result are hard to pin down, with estimates ranging from five to 30 percent.

In Asia, manufacturers use local horseshoe crab populations to make an alternative variant of the testing assay, TAL, which is used mainly by pharmaceutical manufacturers in the region.

Most of the crabs harvested in Asia are ultimately killed after they are bled, and in listed the Asian tri-spine horseshoe crab as an endangered species.

Compounding adversities for the horseshoe crab are decades of overharvesting for use as eel and whelk bait, and fertilizer, not to mention devastating habitat loss linked to the commercial development of seashore communities and climate change impacts, including more intense storms and rising sea levels that threaten their spawning grounds.

In the Delaware Bay, home to the world’s largest population of spawning horseshoe crabs, the population has crashed—declining by over the past two decades.

As a keystone species, the crab is vital to area food webs, and its decline has adversely impacted many other animals, notably shorebirds that rely on consuming horseshoe crab eggs to complete their migrations.

At least one bird species that feeds on the crab’s eggs, the red knot, is now listed as threatened.

Working at Lilly, Jay had been aware of an alternative method to test for endotoxins using a synthetic alternative— recombinant factor C, or rFC—developed just over 20 years ago.

However, lacking an official entry in the United States Pharmacopeia (USP), and facing regulatory uncertainty in the eyes of health authorities, it required additional validation testing to prove safety for a successful FDA approval.

Across the industry there was reluctance to undertake this extra validation, as well as concerns about widespread access to the alternative test agent.

Jay began to wonder if he could make a difference.

He had seen his first red knot in the Delaware Bay in many birding adventures.

But now, the bird and its plight held more of a personal connection.

In Levin, one of the two scientists who discovered the LAL reaction in the first place, he recalled Dr. Levin saying that if ever LAL were ever to be unseated from its central role as the main endotoxin test agent, it would be because of the birding community.

The turning point came in horseshoe crab species has been in decline.

Concerned about potential future supply problems with LAL—and knowing that Lilly is committed to reducing the use of animals in research and testing wherever possible—Jay lobbied and won support from two governance committees at Lilly, getting permission to validate the rFC approach.

Lilly drew a line in the sand in 2016, applying the rFC test to all new products being developed internally.

We were the first company to submit an application for drug approval to the FDA—Emgality®—to prevent migraine headaches—where the final drug will be tested using rFC.

In a watershed moment, the FDA approved Emgality in approved for the market release using rFC.

Upon implementation of the rFC test across all Lilly manufacturing sites, on the order of several thousand horseshoe crabs will be saved in the first year and every year thereafter.

Jay hopes that the ripple effect will be much larger, if the broader pharmaceutical industry can be persuaded to adopt the rFC test as a more efficient and cost-effective approach that doesn’t require the ethical tradeoffs of harvesting live animals.

has provided more than $2 million in research grants.

The majority of Lilly’s direct environmental impacts are from the manufacturing of medicines.

Lilly launched an initial public offering (IPO) of Elanco Animal Health Incorporated in September Elanco in March 2019, making it an independent, publicly traded company.

Elanco was previously a division of Lilly, and data from Elanco operations is included in Lilly’s manufacturing data through immediately following the IPO.

Beginning in will adjust our environmental performance data baseline calculations to reflect the Elanco divestiture.

Since then, Lilly has completed initial design for a new nine-megawatt combined heat and power system at our Puerto Rico facility.

The project will improve our resiliency to severe weather events and our environmental performance.

ENERGY USE AND GREENHOUSE GAS EMISSIONS Lilly set aggressive targets for improving energy efficiency and thereby reducing our GHG emissions.

In addition to our Scope efforts, we monitor several categories of Scope 3 GHG emissions and are committed to expanding the scope and quality of related data and disclosures.

In CDP, formerly known as the Carbon Disclosure Project, recognized our efforts with a score of A-, which is considered leadership level. Goals and Trends in 2018 Lilly’s 2020 goal is to improve both our energy efficiency and Scope 1 and Scope 2 GHG emissions intensity, measured per unit of site space, by 20 percent as compared to our 2012 baseline.