Novartis has been a long time environmental leader. For instance, the company was the first pharmaceutical company to acknowledge the growing problems associated with pharmaceutical residues in waterways (sewage treatment plants are not designed to process drug residues). All major Novartis products undergo a comprehensive life-cycle analysis in order to minimize product impacts before reaching consumers. Novartis is also involved in several consumer take-back programs to assist in proper disposal of unused drugs, again reducing impacts on waterways. Novartis has implemented an energy and climate strategy, supported by a unique policy that allows for capital investments associated with energy conservation to be paid back over the lifetime of the asset, thus encouraging efficiency measures. The company provides good transparency and reports its greenhouse gas emissions on a global basis, along with other group-wide data and reduction goals on its key performance indicators. Novartis has experienced a number of recalls in recent years and has had repeated regulatory warnings from the Food and Drug Administration. Portfolio 21 has asked the company to reaffirm its commitment to product quality and good manufacturing practices.
To the best of our knowledge the above information is accurate and was obtained from sources we believe to be reliable. Neither the information presented above nor any opinion expressed shall be construed as an offer to sell or a solicitation to buy the security. The views expressed are those of portfolio management as of 8/31/14 and may not reflect current opinions or subsequent events.