23 LEO Foundation Annual Report 2020
Corporate social responsibility
Management review
Financial statements
Corporate social responsibility The LEO Foundation is committed to creating sustainable value for people and society through engaged ownership, philanthropy and investments, and we base our work and approach to corporate social responsibility on a strong set of values.
The LEO Foundation supports and respects the protection of internationally adopted principles on human rights, labor, climate, environment and anti-corruption, and requires grantees and everybody working on the projects we support to be employed under conditions that comply with applicable laws. The vast majority of the LEO Group’s business activities are conducted by LEO Pharma, and CSR is embedded in the company’s business and in the behavior of its employees. The Board of Directors of LEO Pharma, on which the Foundation is represented, defines the specific CSR policies for LEO Pharma.
Responsible investment and ESG responsibility As an owner of a global pharmaceutical company, a substantial financial investor and a philanthropic supporter of scientific research around the world, the LEO Foundation plays an active role in society. We recognize our responsibility to uphold high ethical standards and to ensure compliance with applicable laws, ethical codes and regulations.
The LEO Foundation has adopted an environmental, social and governance (ESG) policy for our investment activities. This policy is based on adherence to the Ten Principles of the UN Global Compact, which form the basis for ethical human and corporate behavior. By basing our policy on these principles, we aim to address the CSR risks we face as a large financial investor.
As our investments are managed through external investment managers, we work actively with these managers to ensure compliance with the policy. Our investment team reviews the investment managers as an integrated part of the investment process, and managers are required to report yearly on ESG factors and relevant matters such as exited investments, engagement with companies and corrective actions they have carried out. In 2020, we continued to integrate ESG factors into our investment approach. We receive yearly reports from investment managers to make sure that investments comply with the ESG policy. No environmental, social or governance issues were reported in 2020.
Responsible tax The LEO Foundation is committed to being transparent and responsible in all of our actions, including how we conduct our tax affairs. As part of this commitment we have developed a set of key tax principles. These have been approved by our Board and are reviewed annually. The tax principles apply to the LEO Foundation
and our subsidiaries including LEO Holding and LEO Pharma. As of 1 January 2021, the LEO Foundation is a signatory to the Tax Code of Conduct, which was established by four major pension funds and has now been adopted by 12 pension funds and six major foundations in Denmark. The Tax Code of Conduct outlines principles and recommendations promoting responsible tax behavior regarding unlisted investments.
Environmental responsibility and sustainable development
contributes to achieving the SDGs through LEO Pharma’s business activities. For more information on company-specific policies, activities and results, please refer to LEO Pharma’s Annual Report.
Given the type of business conducted by the LEO Foundation and with just 11 employees, the Foundation’s direct impact on climate and the environment is limited. At LEO Group level, the main impact stems from LEO Pharma’s six production facilities.
Responsible business at LEO Pharma Responsible business at LEO Pharma focuses on how the company operates in an ethical and responsible way to ensure integrity and respect for employees, business partners and the environment.
There is an immediate connection between the LEO Foundation’s purpose and philanthropic activities and the UN Sustainable Development Goal (SDG) #3 concerning good health and well-being. However, the Foundation primarily
To consolidate its commitment to responsible business, LEO Pharma is a signatory to the UN Global Compact and adheres to the Ten Principles on human rights, labor, environment and anti-corruption.
