Procurement Goals & Performance

Our manufacturing, procurement and logistics functions provide more than 100 medicines, over 140 diagnostics instruments and over 850 diagnostic tests to patients, laboratories and healthcare professionals worldwide.

We seek to build a resilient supply chain by adhering to best practices, developing novel approaches and working in partnership with our suppliers. Business continuity planning and risk management are the cornerstones of our approach.

Our strategic focus for Roche’s manufacturing procurement organization is to “Accelerate Roche’s goal to bring innovative solutions to patients quickly and efficiently through business and supplier partnerships”.

Our top priority is ensuring the sustainable supply of medicines and diagnostics to our patients.

Our supply chain goals are aligned with the Roche business objectives. For example, some 2024 key targets of our pharmaceutical manufacturing organization are listed below:

• Be a top tier supplier

• Implement rigorous E2E risk management to provide optionality to mitigate supply risks

• Build sustainable supply chains in line with corporate

• Input early in the process to ensure robust supply chains at launch

We monitor target achievement and we are fully committed to ensure uninterrupted supply to patients.

Our supplier goals are aligned with the Roche Group strategy. Our targets are as shown in the table below.

*In November 2022, by endorsement from the Roche Corporate Executive Committee, Rocheto the Science Based Targets Initiative (SBTi). The setting of science based targets for this programme will include re-establishing baselines for all fifteen categories of Scope 3 GHG emissions using a combination of primary and activity based proxy data to allow for granularity and accuracy. Our immediate focus will be on supply chain emissions; Category 1 (Purchased Goods and Services), Category 2 (Capital Goods), Category 4 (Transport & Distribution), and on Category 11 (Use of Sold Products). Long term and short term targets for all fifteen categories of Scope 3 GHG emissions will be set and future eco-balance targets and performance will be updated accordingly.

In 2023, our total spend with suppliers and service providers was approximately CHF 19.4 billion. The spend with the top ~900 suppliers accounted for 80% of Roche’s total spend. Approximately 12% of the total spend was with suppliers in non-OECD countries.

2023 Spend by region (in billion CHF):

• North America 6.5

• Europe, Middle East and Africa 11.2

• APAC 1.2

• LATAM 0.5

2023 Spend by category (in billion CHF):

• Research & Development 3.4

• Supply Chain 6.3

• Engineering and Facilities 2.6

• General & Administration 3.3

• Marketing & Sales 1.7

• Information Technologies 2.0