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Welcome
Content
Click below to 
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the document
Giovanni’s first 
impressions
Top 10 questions  
from shareholders
Save the date
Appendix
External recognition 
of our sustainability 
progress
Our continued 
commitment to 
malaria and NTDs
Edition no.22 
Q2 2025 Impact  
and Sustainability 
Update to investors 
For any questions and comments, please reach out to:
Sloan Simpson
Global Head of 
Investor Relations
sloan.simpson@novartis.com
+1 862 345 4440
Maria Victoria Cuevas
Investor Relations Executive 
Director & ESG Head
maria.cuevas@novartis.com 
+41 79 586 52 85
Dear investors and analysts, 
In our Q2 update, we share first impressions from Giovanni Caforio,  
the new Chairman of the Novartis Board of Directors. We also highlight  
our ongoing commitment to addressing neglected tropical diseases,  
and malaria, with a major milestone this quarter: the first approval  
for Coartem® Baby. In addition, we report on recognition for our  
progress towards achieving our c...

Welcome
Content
Click below to 
navigate through  
the document
Giovanni’s first 
impressions
Top 10 questions  
from shareholders
Save the date
Appendix
External recognition 
of our sustainability 
progress
Our continued 
commitment to 
malaria and NTDs
Edition no.22 
Q2 2025 Impact  
and Sustainability 
Update to investors 
For any questions and comments, please reach out to:
Sloan Simpson
Global Head of 
Investor Relations
sloan.simpson@novartis.com
+1 862 345 4440
Maria Victoria Cuevas
Investor Relations Executive 
Director & ESG Head
maria.cuevas@novartis.com 
+41 79 586 52 85
Dear investors and analysts, 
In our Q2 update, we share first impressions from Giovanni Caforio,  
the new Chairman of the Novartis Board of Directors. We also highlight  
our ongoing commitment to addressing neglected tropical diseases,  
and malaria, with a major milestone this quarter: the first approval  
for Coartem® Baby. In addition, we report on recognition for our  
progress towards achieving our climate goals, and invite you  
to join our 12th annual social impact and sustainability event.
As always, we include top questions from shareholders during  
Q2 and our responses.
We thank you for your continued engagement.
Q2 impact and sustainability update  |  2
Content
Click below to 
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the document
Welcome
Giovanni’s first 
impressions
Top 10 questions  
from shareholders
Save the date
Appendix
External recognition 
of our sustainability 
progress
Our continued 
commitment to 
malaria and NTDs
Giovanni’s first impressions
1.	 What attracted you to the role of Chairman at Novartis?
•	 I’ve long admired Novartis for its deep commitment to science and innovation.  
The opportunity to contribute to a company with a focus on breakthrough research  
and a strong pipeline of transformative therapies was especially compelling.
•	 I was also drawn to the Novartis global reach – serving patients in over 100 countries,  
with 2024 net sales distributed across the US (42%), Europe (31%), Asia, Africa, and  
Australasia (20%), and Canada and Latin America (7%). Having spent most of my career  
in the US, I was excited by the chance to support a truly global organization.
•	 Another key factor was the Novartis longstanding commitment to social impact and  
sustainability. The company’s legacy in malaria, for example, is truly inspiring – having  
innovated multiple generations of anti-malarial treatments1 and distributed more than a 
billion courses of therapy, largely not-for-profit, to those in need. In today’s uncertain world,  
I believe it’s more important than ever for companies to stay grounded in their values.
•	 On a personal note, after many years in executive leadership, I felt it was the right time  
to take on a non-executive role – one that allows me to focus more deeply on Board  
effectiveness and long-term strategy than was possible in my previous role as CEO.
2. What are your first impressions of Novartis and its Board of Directors?
•	 The quality of talent at Novartis is exceptional. I was already familiar with several leaders,  
including the CEO, and my early interactions have only reinforced my view that the organization  
is driven by highly capable individuals with a strong sense of purpose.
•	 Across the company, I’ve observed a consistent theme of “focus” – on innovation, execution  
and impact – which aligns closely with our strategy as a focused, innovative medicines company.
•	 The Board of Directors is equally impressive – diverse in both background and perspective,  
with members from Switzerland, the US and across Europe. It is a highly engaged and  
high-performing group. I’ve had one-on-one discussions with every Board member and 
participated in all committee meetings, which has given me a deep appreciation for the  
Board’s effectiveness and commitment to long-term value creation.
•	 For example, the Science & Technology Committee (STC) plays a critical role in shaping 
our innovation strategy. The addition of Dr. Beth McNally, a renowned scientist, has further 
strengthened the committee’s expertise. Chaired by industry veteran John Young, the STC brings 
a powerful combination of scientific depth and strategic perspective to our pipeline discussions.
Following the election of our new Chairman, Dr. Giovanni Caforio,  
at the 2025 Annual General Meeting, we’ve received several  
questions from ESG investors about his early perspectives.  
Below is a summary of our initial exchanges with Dr. Caforio,  
reflecting his first impressions and priorities as he steps into the role.
Dr. Caforio has had an international career in the healthcare industry 
spanning more than 35 years, most recently as the Chairman and CEO 
of Bristol Myers Squibb (BMS). Under his leadership, BMS successfully 
transformed into a global medicines company with strong capabilities 
across R&D and commercialization. Dr. Caforio was born and educated  
in Italy and holds Italian and US citizenship. He is a physician by training  
and received his M.D. from the University of Rome.
1. Planned submission of ganaplacide/lumefantrine (KLU156) in 2026; planned submission of cipargamin (KAE609) in ≥2028.
Q2 impact and sustainability update  |  3
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External recognition 
of our sustainability 
progress
Our continued 
commitment to 
malaria and NTDs
3. What are your immediate priorities for the months ahead?
•	 Over the past few months, I’ve been spending time across the organization –  
visiting R&D sites, meeting with commercial and functional teams, and engaging  
with leaders across the business. I have conducted deep-dive reviews of each function,  
which have been invaluable in understanding both the company’s strengths and the  
opportunities ahead. In the second half of the year, my focus will be on visiting our key 
businesses in Asia, to further deepen my understanding of the company’s global reach.
•	 I will also continue to work with the Executive Committee in preparation for upcoming  
Board strategy sessions. One of the changes I’ve introduced is a new approach to 
Board-level strategic oversight: rather than holding a single annual strategy meeting,  
we now dedicate time at each Board meeting to explore a specific strategic theme –  
such as R&D, US growth, or talent and succession planning. This allows for more focused,  
in-depth discussions and greater continuity in strategic dialogue.
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Q2 impact and sustainability update  |  4
Welcome
Giovanni’s first 
impressions
Top 10 questions  
from shareholders
Save the date
Appendix
External recognition 
of our sustainability 
progress
Our continued 
commitment to 
malaria and NTDs
Our continued commitment to 
address malaria and neglected 
tropical diseases (NTDs)
1. Gene therapy.     2. Flavivirus, henipavirus, coronavirus.     3. https://accesstomedicinefoundation.org/sectors-and-research/index-ranking.      
4. The 2024 report of the Lancet Countdown on health and climate change: facing record-breaking threats from delayed action. Romanello, Marina et al.  
The Lancet, Volume 404, Issue 10465, 1847 - 1896. 
•	 As an innovative medicines company, we leverage our scientific capabilities to  
address global health threats often overlooked by traditional R&D, delivering innovative  
therapies to underserved communities. 
•	 Novartis initially pledged USD 250 million in funding for R&D into treatments for malaria  
and other NTDs for the five-year period 2021-25, as part of our endorsement of the Kigali  
Declaration on NTDs alongside the 26th Commonwealth Heads of Government meeting.
•	 In 2023-24, we strategically increased our investment, recognizing the strong potential  
for breakthrough treatments in our pipeline. By the end of 2024, total funding reached  
USD 360 million, positioning Novartis as the company with the industry’s largest pipeline  
specifically targeting NTDs3. 
•	 Looking ahead, we plan to nearly double our original pledge by the end of 2025,  
reaching a total investment of USD 490 million over the same period – as part of  
our long-term commitment to advancing innovation in areas of high unmet need. 
•	 Our investments include advancing next-generation medicines for malaria to tackle  
growing drug resistance and developing the first antiviral treatment for dengue, the  
world’s most prevalent vector-borne viral disease. Both diseases are major public  
health threats that may be exacerbated by climate change4.  
•	 As part of our approach, we work closely with R&D partners, including Medicines for  
Malaria Venture (MMV), the Gates Foundation, the European and Developing Countries  
Clinical Trials Partnership (EDCTP), the WANECAM2 and PAMAfrica consortiums, and  
Drugs for Neglected Diseases Initiative (DNDi).
First novel malaria drugs combination
to advance to Phase III trials in decades
Target
Indication
Unknown/novel
Malaria
Unknown/novel
Malaria
PfATP4
Severe Malaria
Unknown
Malaria
Proteasome
Leishmaniasis
NS4B
Dengue
Proteasome
Chagas Disease
PI4K
Cryptosporidiosis
Unknown/novel
Malaria
Undisclosed
Sickle Cell Disease
Topo II
Chagas Disease
Topo II (Backup)
Chagas Disease
NS3, NS5
Dengue
Multiple2
Pandemic Preparedness
Hypnozoite
Malaria Radical Cure
Undisclosed
Sickle Cell Disease1
Fast-acting drug candidate in advanced trials 
for uncomplicated and severe malaria
Potent drug candidate for single-dose cure  
Fast-acting novel malaria drug candidate 
with potential for single-dose cure
Potential first dengue-specific therapy; 
has activity across serotypes
Most advanced drug candidate designed 
specifically for cryptosporidiosis
Discovery
Preclinical
Phase I
Phase II
Phase III
Promising drug candidate for Leishmaniasis; 
current options are toxic and poorly effective
Approved medicines have significant toxicity
and limited demonstrated clinical benefit
Ganaplacide/lumefantrine (KLU156)a
Triple combination therapy a
LXE408 b
EYU688
LXE408
EDI048 c
IWY357
Cipargamin (KAE609) oral and IV c
INE963 oral and IV a
ITU512
Fast-acting anti-malarial with high barrier to resistance 
and potential for single dose cure as part of combination therapy
Novel oral therapy with first- and best-in-class potential 
to achieve functional cure
Novartis malaria and NTD pipeline
Developed with collaboration or funding from a. Medicines for Malaria Venture, b. Drugs for Neglected Diseases Initiative, c. Wellcome.
The definitions of diseases can be found in the appendix 
 here.
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Q2 impact and sustainability update  |  5
Welcome
Giovanni’s first 
impressions
Top 10 questions  
from shareholders
Save the date
Appendix
External recognition 
of our sustainability 
progress
Our continued 
commitment to 
malaria and NTDs
5. In partnership with Medicines for Malaria Venture (MMV).     6. Since 1999.
Legacy of fighting malaria through innovation 
1999 
Launched the  
first fixed-dose  
Artemisinin-based  
Combination  
Therapy (ACT)
2021
Surpassed 1 billion  
antimalarial 
treatments  
delivered globally6 
2025 
Coartem®  
Baby approved  
on July 8, 2025
≥2028 
Planned 
submission  
of cipargamin 
(KAE609)
2009
Developed first  
dispersible  
pediatric ACT5
2022
Pledged USD 250 million  
to R&D of new NTDs/
malaria treatments  
over five years  
2026
Planned submission of  
ganaplacide/lumefantrine  
(KLU156)  
Novartis receives approval for first malaria  
medicine for newborn babies and young infants
•	 Addressing significant unmet need: Current data on  
malaria in newborn babies and young infants is limited,  
as they are rarely included in clinical trials of antimalarial  
agents, and there has been a longstanding misconception  
that babies are protected by maternal immunity. There  
are about 30 million babies born in areas of malaria risk  
in Africa every year, with one large survey across  
West Africa reporting infections in babies under 6 months 
old ranging from 3.4% to as high as 18.4%. Until now, young babies have had to make  
do with medicines designed for older children, potentially risking overdose and toxicity.
•	 In July, Swissmedic approved Coartem® Baby, the first clinically proven malaria treatment 
specifically designed for newborns and infants between 2-5 kg. This milestone paves the way 
for registration in eight African countries through the Marketing Authorization for Global Health 
Products (MAGHP) procedure. 
•	 It will be introduced on a largely not-for-profit basis, through a sustainable access model that 
reflects our commitment to staying the course in global health and addressing the changing 
burden of disease.
•	 The new treatment was developed in partnership with Medicines for Malaria Venture (MMV), 
reflecting close scientific collaboration and shared purpose.
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Q2 impact and sustainability update  |  6
Welcome
Giovanni’s first 
impressions
Top 10 questions  
from shareholders
Save the date
Appendix
External recognition 
of our sustainability 
progress
Our continued 
commitment to 
malaria and NTDs
External recognition of our 
sustainability progress
Save the date
This quarter, Novartis received several awards and high rankings that recognize the consistency  
and impact of our long-term sustainability efforts. While these accolades are not our objective, 
they reflect the progress we’re making in delivering tangible, lasting outcomes.
Novartis was recognized as one of the world’s Most Sustainable  
Companies by TIME and Statista. We ranked #11 (up from #17 in 2024)  
on the list, which features the top 500 companies across 35 countries  
and 21 industries, selected from a pool of 5,700 companies.
TIME Magazine  
World’s Most 
Sustainable 
Companies
Financial Times 
Europe Climate 
Leaders
In collaboration with Statista, the Financial Times included Novartis  
in its list of European climate leaders – companies that have made  
significant progress in cutting their greenhouse gas emissions.
Newsweek 
World’s Greenest 
Companies
Newsweek’s World’s Greenest Companies list spotlights companies  
that have made progress in mitigating their climate impact. Novartis was 
included in the list and received a 5-star rating, reflecting our commitment  
to reducing emissions and advancing environmental sustainability.
Gartner Supply 
Chain – Top 25 
for 2025
Novartis was included in Gartner’s Supply Chain Top 25, recognizing supply 
chain resilience and excellence. ESG factors accounted for 20% of the  
scoring methodology. This year our ESG score increased from 7/10 to 9/10, 
reflecting leading performance and transparency on supply chain sustainability. 
Leader in 
CDP Supplier 
Engagement 
Assessment
Novartis has been named a leader in CDP’s Supplier Engagement Assessment. 
For the third consecutive year Novartis received an “A” rating, highlighting our 
leadership in engaging suppliers on climate change to drive decarbonization. 
Annual Impact & Sustainability virtual investor event
To foster continued dialogue, we invite you to join our 12th annual 
Impact & Sustainability virtual investor event on December 1, 2025. 
During the event we will provide updates on our social impact and 
sustainability strategy and how we are progressing towards our goals. 
You will receive a separate invitation with a webcast link (which will 
also be available on our website) in the coming months.
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Welcome
Giovanni’s first 
impressions
Top 10 questions  
from shareholders
Save the date
Appendix
External recognition 
of our sustainability 
progress
Our continued 
commitment to 
malaria and NTDs
01
June 30, 2025,  
marked the end  
of the Novartis  
Corporate Integrity 
Agreement in the US. 
Do you foresee any 
changes to  
commercial practices 
related to this?
•	 The term of the Novartis Corporate Integrity Agreement expired on June 30, 
2025. We expect to receive a final closeout letter from the Office of Inspector 
General (OIG) of the US Department of Health and Human Services following 
submission of our final Annual Report later this year. This marks an important 
milestone in our ongoing journey to strengthen trust and accountability. 
•	 As background, Novartis has a robust compliance framework grounded in 
responsible and appropriate engagements, and clear intent - always putting 
patients first. While ethics, risk management and compliance have always 
been central to our core operating principles, since 2018 they have been 
strategic priorities endorsed by our Board and Executive Committee. Among 
other things, we have restructured incentive systems, embedded ethics into 
leadership accountability, overhauled our policies, and launched  
a new Code of Ethics. This is supported by an integrated risk and compliance 
framework that includes centralized monitoring, third-party risk management, 
and a strong “speak up” culture.
•	 As we move forward, we remain committed to continuously improving and 
further embedding integrity into every aspect of our business – ensuring that 
our commercial practices continue to reflect the highest standards of ethics, 
transparency, and accountability.
02
How do you view  
the EU’s plan to  
simplify due  
diligence rules?  
Any updates on 
your human  
rights program?
•	 We welcome the ongoing discussions around simplifying the Corporate 
Sustainability Due Diligence Directive (CSDDD). At the same time, we believe 
it is important to maintain a risk-based approach to due diligence – one that 
goes beyond compliance and supports meaningful risk identification and 
management across our value chain.
•	 Regardless of regulatory developments, we remain committed to 
strengthening our due diligence practices. This includes continued investment 
in our External Partner Risk Management Program1 and our broader human 
rights and environmental sustainability efforts with suppliers.
•	 As part of our human rights program, we have recently implemented  
two new approaches:
	 - Worker Voice: We launched a digital survey across 60 supplier factories, 
reaching more than 7,000 workers. The survey focused on basic human 
rights topics such as contracts and grievance mechanisms. The insights 
gathered have helped inform more targeted engagement with suppliers.
	 - Behavioral Science: We tested different communication strategies in  
our outreach to suppliers. Applying behavioral science principles 
improved response times and increased supplier engagement on  
human rights topics. We plan to continue integrating these learnings  
into our processes.
•	 These efforts reflect our commitment to continuously improve how we 
manage human rights risks across our operations and supply chain.
Top 10 impact and  
sustainability-related questions from 
shareholders and our responses
Q2 impact and sustainability update  |  7
Governance and human rights
In Q2, investor questions focused on governance (particularly the corporate integrity agreement), 
access to medicines, and our climate transition plans. We also continue to receive questions  
on how we are adapting to the external environment. 
1. Novartis External Partner Risk Management (EPRM) framework supports the assessment and management of risks related to the engagement  
of external partners.
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Q2 impact and sustainability update  |  8
Welcome
Giovanni’s first 
impressions
Top 10 questions  
from shareholders
Save the date
Appendix
External recognition 
of our sustainability 
progress
Our continued 
commitment to 
malaria and NTDs
Access and Global Health
03
Do international  
aid cuts impact  
your Global Health 
initiatives? 
•	 For 2025, we do not foresee any major impact on our global health 
initiatives. However, we are closely monitoring external developments 
and actively engaging across all fronts to adapt our efforts, ensuring our 
societal impact remains strong. We work with different public sector and 
civil society organizations and are collaborating closely with our partners. 
•	 Looking to the future, we are assessing longer-term implications, but 
we remain committed to global health and the areas where we can have 
lasting impact as an innovative medicines company – including finding 
breakthroughs for neglected tropical diseases. Our Global Health business 
models have evolved over time from donation models into public-private 
partnerships and inclusive business models. This approach is successfully 
achieving sustainable healthcare impact.
04
What are your  
plans for a new  
sustainability-linked 
bond or other  
impact-linked 
instruments?
•	 In 2020, Novartis was the first company to issue a sustainability-linked 
bond (SLB) with social targets. At the time, the instrument was positively 
received by stakeholders, who valued the alignment between financial and 
sustainability objectives and the accountability mechanism embedded in 
the structure.
•	 Since then, market conditions for SLBs have evolved. Based on our current 
assessment, we do not anticipate issuing a new SLB. This decision reflects 
external market dynamics rather than any shift in our sustainability or social 
impact priorities. 
•	 We remain on track to meet the targets associated with our  
sustainability-linked bond. At the end of 2024, we have achieved: 
	 - Over 1.8 million patients reached with strategic innovative therapies  
in low- and middle-income countries, a 230% increase from 2019  
(vs. a ≥200% target); and
	 - Over 26.3 million patients reached through our flagship global health 
programs, a 75% increase from 2019 (vs. a ≥50% target). 
•	 We remain focused on advancing our commitments in these  
areas and continue to explore ways to define and report clear,  
outcome-oriented metrics.
05
One of the aspects 
of your strategy that 
the ATMI praises 
is the continuity of 
your access-related 
initiatives following 
the spin-off of Sandoz.  
What have been 
the main challenges 
associated with this 
spin-off (from an 
access perspective)? 
•	 The October 2023 spin-off of Sandoz allowed us to sharpen our strategic 
focus on access to innovative medicines.  
•	 This transition, however, presented challenges, such as re-aligning access 
programs that previously spanned both innovative and generic portfolios. 
Thanks to strong partnerships, we ensured uninterrupted supply and 
continuity of support for ongoing initiatives. 
•	 More broadly, partnerships have been instrumental in addressing 
affordability and health system infrastructure challenges in LMICs,  
helping us scale our social impact. 
	 - For example, through our community health program in Vietnam,  
we collaborate with government stakeholders and NGOs to reach  
low-income patients typically excluded from commercial channels.  
The World Bank has committed USD 10 million to expand the program  
to include testing and treatment for dyslipidemia. Building on over a 
decade of success, during which over 1.6 million people have been 
reached, we plan to expand this model to 10 additional markets over  
the next five years.
•	 In our first full year (2024) as a dedicated innovative medicines company, 
we reached nearly 300 million patients globally with our innovative 
therapies – more than ever before. Of these, 30.2 million were supported 
through our access programs and initiatives.
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Q2 impact and sustainability update  |  9
Welcome
Giovanni’s first 
impressions
Top 10 questions  
from shareholders
Save the date
Appendix
External recognition 
of our sustainability 
progress
Our continued 
commitment to 
malaria and NTDs
06
How is Novartis 
navigating its  
diversity, inclusion  
and belonging  
policies in the  
current environment? 
•	 We have always been a company that hires and promotes based on merit 
and strives to create a workplace where every one of us can be our best 
and true selves. We believe that success – whether in scientific discovery, 
business performance or patient impact – depends on how well we 
foster equal opportunity and embrace the varied perspectives, strengths, 
skillsets, and experiences of all our employees. These principles guide our 
actions and ensure that Novartis remains a place where people thrive and 
patients benefit.  
•	 As a global company, Novartis complies with the laws of all countries  
within which it operates. For example, the evolving legal and policy 
landscape in the US has required us to make some changes: 
	 - We have retired the use of diverse candidate slates and interview panels 
as part of the hiring process for any US positions. 
	 - Our US organization will also no longer participate in the gender balance 
in management aspect of our EPIC2 pledge. 
	 - Overall, the company works to ensure that all our employees are 
compensated fairly based solely on job-related factors, consistent  
with applicable law.
•	 While we have made these updates to reflect requirements in the US, 
our company values remain unchanged. Our commitment to community, 
belonging, and inclusion remains strong now and into the future.
Human capital 
07
What is your policy  
on carbon offsets,  
and how are you 
sourcing high-integrity 
removal credits?
•	 In line with guidance from the Science Based Targets initiative (SBTi), 
we are committed to achieving a minimum 90% reduction in Scope 1, 2, 
and 3 emissions through operational efficiencies, clean technology, and 
decarbonization of our supply chain. Our primary focus is on reducing 
absolute greenhouse gas emissions across our operations and supply  
chain in line with our SBTi-approved net-zero target for 2040. 
•	 Carbon offsets are not used as a substitute for emissions reduction.  
We view them strictly as a last-resort measure, applied only to address 
residual, hard-to-abate emissions that remain after all feasible reduction 
efforts. These residual emissions will account for no more than 10% of our 
total emissions footprint by 2040, aligning with SBTi net-zero standards.
•	 Similarly, for our 2025 target of carbon neutrality in our own operations 
(Scope 1 and 2 emissions from energy), we are focused on absolute emission 
reductions and investing in carbon credits for unabated emissions, using  
a mix of high-quality biomethane certificates and nature-based carbon 
removal solutions. We are ensuring that all credits are aligned with evolving 
global standards and frameworks.
08
Can you share  
more details on the 
USD 40 million  
capital expenditure  
on environmental 
projects outlined in  
your integrated report?
•	 The capital expenditure outlined in our Integrated Report aligns with our  
SBTi-approved near-term and long-term (net-zero by 2040) targets. 
•	 To achieve a 90% reduction in Scope 1 and 2 emissions by 2030 (vs. 2022), 
we are investing in energy efficiency, process innovation, and on-site clean 
energy solutions. Our investments span renewable energy technologies such 
as solar panels, electrification, heating and cooling system optimization, and 
biomass-based energy generation, helping to reduce operational reliance on 
fossil fuels. 
•	 As clean technologies evolve, so will our investment approach. For more 
details, please refer to our 
 2024 Novartis in Society Integrated Report.
Climate and nature
2. Equal Pay International Coalition. https://www.equalpayinternationalcoalition.org/whats_new/leaders-at-the-un-general-assembly-pledge-to-reduce-the-
gender-pay-gap/.
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Q2 impact and sustainability update  |  10
Welcome
Giovanni’s first 
impressions
Top 10 questions  
from shareholders
Save the date
Appendix
External recognition 
of our sustainability 
progress
Our continued 
commitment to 
malaria and NTDs
09
How have you 
progressed toward  
your plan to set  
site-specific targets  
for operations  
exposed to  
water stress? 
•	 We are committed to addressing water stress through both global targets and 
site-specific action. 
•	 Our target is to reduce water consumption by 50% by 2025 (vs. 2016). In 2025, 
we further strengthened our commitment with the target of implementing water 
reduction plans by 2030 at our own and supplier sites in water-stressed basins 
with potential significant impacts.
•	 As of 2024, we have already achieved our 2025 goal, reducing water 
consumption by 57%, driven by targeted efficiency and innovative water reuse 
projects. For instance, at our Cairo site in Egypt, treated equipment outlet water 
is reused in cooling towers, saving around 10,000 m³ annually. At our Kundl site in 
Austria, vial washer wastewater is recycled as boiler feedwater, saving 60,000 m³ 
annually, equivalent to 24 Olympic-sized swimming pools.
•	 To deliver our 2030 target, we are currently working to set site-specific water 
targets for key locations in water-stressed basins. In this assessment, we are 
leveraging global water risk assessment models aligned with industry best 
practice and local stakeholder input to prioritize and tailor actions. These targets 
will be integrated into site-level environmental performance plans and monitored 
through our global sustainability governance framework. We plan to finalize our 
internal site-specific targets by 2026. 
10
Can you provide 
an update on your 
progress toward 
your target of plastic 
neutrality by 2030? 
•	 We retired our previous target of achieving plastic neutrality by 2030 to 
shift toward more focused, measurable goals aligned with industry-standard 
frameworks.
•	 A new 2030 ambition for waste reduction has been set, building on our progress 
to date. As we already reduced waste by 63% in 2022 vs. 2016, we now aim 
for a further 30% reduction by 2030 vs. 2022. As of the end of 2024, we have 
achieved 23% waste reduction (vs. 2022). Achieving the 2030 target will be 
ambitious given changes in production volumes and product mix. However, 
Novartis will continue to drive waste reduction through process excellence, 
solvent recovery and recycling, and designing materials with circularity in  
mind – supporting our commitment to deliver medicines with minimal impact  
on the environment.
•	 We also eliminated polyvinyl chloride (PVC) – a long-lasting plastic – from 
secondary and tertiary product packaging across all our sites. 
•	 Our updated approach prioritizes absolute waste reduction, increased 
recyclability, and supports a broader circular economy strategy across  
operations and packaging.
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Q2 impact and sustainability update  |  11
Welcome
Giovanni’s first 
impressions
Top 10 questions  
from shareholders
Save the date
Appendix
External recognition 
of our sustainability 
progress
Our continued 
commitment to 
malaria and NTDs
Appendix
Malaria
Parasitic infection transmitted by mosquitoes causing fever, chills, 
and anemia; a leading cause of child mortality globally.
Severe Malaria
Life-threatening malaria leading to coma, severe anemia,  
or organ failure.
Leishmaniasis
Parasitic disease spread by sandflies, causing skin ulcers  
(cutaneous form of disease) or fever, weight loss, and severe  
organ damage (visceral form of disease).
Dengue
Viral infection transmitted by mosquitoes presenting with high fever, 
severe headache, joint pain, and, in severe forms, bleeding and death.
Chagas Disease 
Parasitic infection spread by triatomine bugs, causing fever  
in acute states and risk of potentially fatal chronic heart disease  
in later stages.
Cryptosporidiosis
Parasitic infection transmitted via contaminated water or food, 
leading to prolonged diarrhea and risk of death in young or 
malnourished children.
Sickle Cell Disease
Inherited blood disorder causing abnormal hemoglobin that leads  
to anemia, pain crises, and organ damage.
Radical Cure for Malaria
Treatment approach eliminating both blood-stage and dormant  
liver-stage malaria parasites to prevent relapses.
Pandemic Preparedness
Proactive strategies to anticipate, prevent, and rapidly respond  
to widespread disease outbreaks.    
Definitions of diseases