Novartis ranked No. 4 out of 44 pharmaceutical companies globally
November 17, 2006 - Novartis was rated a top sustainability performer with an AAA score in the 2006 “Global pharmaceutical sector report” by Innovest, ranking 4th out of 44 pharmaceutical companies. Novartis was recognized as an exemplary company for its integration of environmental, social and governance (ESG) matters into its overall strategy.
This score reinforces the recent ranking of Novartis as the 2006 Super Sector Leader in healthcare for the Dow Jones Sustainability Index (DJSI) and its inclusion in the 2006 FTSE4Good.
Innovest used its Intangible Value Assessment (IVA) model to rate 44 pharmaceutical companies based on over 140 different aspects of environmental, social and governance factors. By assessing companies on aspects not typically identified by traditional value drivers, Innovest hopes to uncover hidden risks and value potential for investors.
The report cites the understanding and commitment of Novartis to sustainability principles as being among the best in the sector. The company also demonstrates significant transparency and reporting on a wide breadth of issues. In particular, its online GRI (Global Reporting Initiative) report is singled out for providing a detailed account of its ESG policies, management systems and performance.
The analysis also commends Novartis for its fight against neglected diseases and efforts to improve access to medicines – while maintaining a strong innovative pipeline with 13 FDA approvals in the last five years. These activities are considered to enhance the company's reputation and represent a competitive advantage.
When it comes to product safety, the report propounds that Novartis seems to be well prepared to manage risks associated with product safety thanks to the establishment of a product stewardship council which reports quarterly to the executive committee on safety, regulatory, reputation and legal risks.
Referring to clinical trials practices – which Novartis conducts in accordance with the Good Clinical Practices guidelines and the ethical principles of the Declaration of Helsinki – they are said to most likely reduce reputation risks associated with the unethical use of people in disadvantaged areas being deprived of the benefits of clinical trials.