Company Profiles

Novartis

Switzerland

Novartis is one of the world's leading firms involved in the research and development, manufacturing, and marketing of pharmaceuticals and nutritional products. Novartis sets itself apart by being the only pharmaceutical company to acknowledge the growing problems associated with pharmaceutical residues in waterways (sewage treatment plants are not designed to process drug residues). Novartis uses life cycle analysis in research and development of new products, 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.

Biotechnology Involvement

While Novartis does not have a published biotechnology policy, through direct communication Portfolio 21 has been able to confirm that Novartis meets our biotechnology policy requirements of knowledge, transparency, fairness, and containment. Novartis utilizes biotechnology only for medical applications, which is allowable under our policy so long as the above criteria are met. The company uses scientific reviews as well as the Precautionary Principle during product development, and it supports the development of standardized labeling systems of Genetically Modified Organisms (GMOs) on an international basis. Novartis also acts in accordance with the UN Convention on Biological Diversity. Most important, Novartis exceeds EU legislative requirements by sterilizing, prior to disposal, all GMOs, independent of their biosafety categorization (rather than only sterilizing GMOs categorized as Biosafety Level II-IV). This indicates the seriousness with which Novartis regards issues and concerns associated with biotechnology. Read Portfolio 21's full Biotechnology Policy.

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 1/31/07 and may not reflect current opinions or subsequent events.