We take our responsibility seriously and seek dialogue with all our stakeholders to find out what really matters to them, through efforts such as our materiality assessment, our sustainability survey, and stakeholder-specific engagement activities.
As Idorsia becomes a commercial company and expands its geographical reach – adding complexity to our organization and increasing our impact on many fronts – our commitment to sustainability remains as important as ever.
Our value chain
Our value chain begins with intensive research, where we explore the function of proteins, characterized by the way they work, which have not previously been targeted. The aim is to discover drugs which can lead to new treatments for patients. Following the drug discovery phase, the selected molecule must be comprehensively studied to demonstrate clinical safety and efficacy. With successful clinical studies demonstrating a compound’s safety and efficacy in hand, we must then navigate the regulatory review and marketing authorization process. Regulatory approval is a key milestone, but our treatments can only reach patients if our products are successfully launched by a commercial organization – completing the journey from bench to bedside.
Our approach to launch starts long before approval, with the global product strategy – a roadmap designed to accelerate our affiliates’ product launch efforts, while also providing a consistent foundation across the world. This value chain model underscores our commitment to advancing patient care and improving lives at every stage of the process.
Our value chain and supplier base will continue to grow as our development compounds are used for a wider range of target diseases, our products become commercially available in more markets, and our medicines reach more patients. As this transformation occurs, Idorsia will continue to focus on creating positive impact and minimizing or mitigating any negative impacts throughout the company’s value chain.
Idorsia procures raw materials, packaging materials, products, and services from around the world. We are committed to working with third parties who embrace the same values and ethical principles as Idorsia. We expect our suppliers to engage in sustainable practices and to respect regulations set out by health and other authorities. We always aim to be open and transparent regarding our company’s impact on the environment, economy, and society. This includes the impact of our supply chain.
We are building Idorsia with a long-term focus and ambitious aspirations. We will run the company in a responsible and sustainable way.Jean-Paul Clozel, Idorsia’s CEO, on the establishment of the company
From the beginning, Idorsia’s leadership has emphasized that sustainability is central to how we define our success. The company was founded with a strong governance framework in place, including a broad range of policies, standard operating procedures, and guidelines to drive a culture of integrity. Our commitment to sustainability has been reinforced over the years. Furthermore, with our transformation into a commercial company, we have expanded oversight, employee training, and other measures to ensure that our business is conducted ethically and in line with relevant legal and regulatory requirements in all the markets in which we operate.
The Board of Directors is responsible for providing direction and approval of the organization’s purpose, values, and strategic priorities, which serve as the guiding principles for the company’s sustainability efforts. The Board is responsible for monitoring Idorsia’s environmental, social and governance (ESG) strategy, targets, and progress. ESG is one of the five main categories of Idorsia’s annual objectives. These objectives are approved by the Board at the beginning of each year, progress is tracked regularly throughout the year, and the objective is assessed by the Board at the end of the year. The annual incentive for employees is also tied to the achievement of this target (in countries where relevant and permitted).
Enterprise risk management
Risks are inherent to all businesses, and our success is dependent on our ability to foresee and mitigate these effectively. We have put in place an Enterprise Risk Management (ERM) system to reduce risks and ensure business continuity throughout the organization.
In line with new reporting expectations on the part of external stakeholders and regulators, as well as our continuous attention to sustainability issues, we have evolved our ERM system to include non‑financial matters (environmental, social, and employee matters, respect for human rights, anti‑corruption efforts) as part of the company’s risk reporting.
Climate-related risks are a key element in this updated risk reporting, and Idorsia has already made an initial assessment of these risks in line with the recommendations of the Task Force on Climate‑related Financial Disclosures (TCFD). More information will be disclosed in the 2023 sustainability report.
Material topics and impacts
We acknowledge that our business activities have wide-reaching implications and can have a range of effects on society and the environment. We strive to align our activities with the expectations of our shareholders, stakeholders, and society as a whole. To this end, we have determined a set of material sustainability topics by considering Idorsia’s impact on people (including human rights), the environment, and the economy (impact – or “inside-out” – materiality).
In our materiality analysis, we identified impacts across our value chain and categorized them as potential, actual, negative, or positive. This also helps us to understand potential ESG risks to our business and better meet our stakeholders’ expectations.
This process allowed us to set a threshold for determining the most significant impacts (14 in total), which were then grouped into four material topics: Advancing science & healthcare, Safeguarding and developing talent and fostering diversity, Compliance and business ethics, and Environmental impact management.
More information on the updated materiality process and outcome will be disclosed in the 2023 sustainability report.
Through our engagement activities and materiality assessment, we know that our stakeholders believe that, in order to achieve sustainable value creation, we must continue to focus our efforts on three pillars: push the boundaries for patients, build on our talents, and lead an ethical business.
We understand that to deliver a sustainable future for our company, these three pillars need to be equally strong. Each pillar is dependent on the others – for example, our ability to build on our talent rests on successful innovation and responsible business practices. Only by succeeding in all three of these areas can we guarantee our future.
Our stakeholders also believe that we need to achieve this in an environmentally friendly manner.