FINAL Celgene 2013 Carbon CDP ProgrammeResponse · Carbon Disclosure Project CDP 2013 Investor CDP...

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Carbon Disclosure Project CDP 2013 Investor CDP 2013 Information Request Celgene Corporation Module: Introduction Page: Introduction 0.1 Introduction Please give a general description and introduction to your organization Celgene is a multinational biopharmaceutical company committed to improving the lives of patients worldwide. At Celgene, we seek to deliver truly innovative and life-changing therapies for our patients, our healthcare system, our society and our economy. Our mission as a company is to build a major global biopharmaceutical corporation while focusing on the discovery, the development, and the commercialization of products for the treatment of cancer and other severe, immune, inflammatory conditions. There are numerous clinical trials at major medical centers using compounds from Celgene. Investigational compounds with the potential to transform today’s treatment paradigms are being studied for patients with incurable hematological and solid tumor cancers, including multiple myeloma, myelodysplastic syndromes, chronic lymphocyte leukemia (CLL), non-Hodgkin's lymphoma (NHL), glioblastoma, and ovarian, pancreatic and prostate cancer and more. As committed as we are to clinical accomplishment, we are equally committed to patient safety and support, which are guiding principles at Celgene. We believe all who can benefit from our discoveries should have the opportunity to do so. Celgene puts patients first with industry-leading programs that provide information, for patient support and, to the maximum extent possible, safe access to our innovative therapies. 0.2 Reporting Year Please state the start and end date of the year for which you are reporting data. The current reporting year is the latest/most recent 12-month period for which data is reported. Enter the dates of this year first. We request data for more than one reporting period for some emission accounting questions. Please provide data for the three years prior to the current reporting year if you have not provided this information before, or if this is the first time you have answered a CDP information request. (This does not apply if you have been offered and selected the option of answering the shorter questionnaire). If you are going to provide additional years of data, please give the dates of those reporting periods here. Work backwards from the most recent reporting year. Please enter dates in following format: day(DD)/month(MM)/year(YYYY) (i.e. 31/01/2001).

Transcript of FINAL Celgene 2013 Carbon CDP ProgrammeResponse · Carbon Disclosure Project CDP 2013 Investor CDP...

Page 1: FINAL Celgene 2013 Carbon CDP ProgrammeResponse · Carbon Disclosure Project CDP 2013 Investor CDP 2013 Information Request Celgene Corporation Module: Introduction Page: Introduction

Carbon Disclosure Project CDP 2013 Investor CDP 2013 Information Request Celgene Corporation

Module: Introduction

Page: Introduction

0.1

Introduction Please give a general description and introduction to your organization Celgene is a multinational biopharmaceutical company committed to improving the lives of patients worldwide. At Celgene, we seek to deliver truly innovative and life-changing therapies for our patients, our healthcare system, our society and our economy. Our mission as a company is to build a major global biopharmaceutical corporation while focusing on the discovery, the development, and the commercialization of products for the treatment of cancer and other severe, immune, inflammatory conditions. There are numerous clinical trials at major medical centers using compounds from Celgene. Investigational compounds with the potential to transform today’s treatment paradigms are being studied for patients with incurable hematological and solid tumor cancers, including multiple myeloma, myelodysplastic syndromes, chronic lymphocyte leukemia (CLL), non-Hodgkin's lymphoma (NHL), glioblastoma, and ovarian, pancreatic and prostate cancer and more. As committed as we are to clinical accomplishment, we are equally committed to patient safety and support, which are guiding principles at Celgene. We believe all who can benefit from our discoveries should have the opportunity to do so. Celgene puts patients first with industry-leading programs that provide information, for patient support and, to the maximum extent possible, safe access to our innovative therapies.

0.2

Reporting Year Please state the start and end date of the year for which you are reporting data. The current reporting year is the latest/most recent 12-month period for which data is reported. Enter the dates of this year first. We request data for more than one reporting period for some emission accounting questions. Please provide data for the three years prior to the current reporting year if you have not provided this information before, or if this is the first time you have answered a CDP information request. (This does not apply if you have been offered and selected the option of answering the shorter questionnaire). If you are going to provide additional years of data, please give the dates of those reporting periods here. Work backwards from the most recent reporting year. Please enter dates in following format: day(DD)/month(MM)/year(YYYY) (i.e. 31/01/2001).

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Enter Periods that will be disclosed

Sun 01 Jan 2012 - Mon 31 Dec 2012 Sat 01 Jan 2011 - Sat 31 Dec 2011

0.3

Country list configuration Please select the countries for which you will be supplying data. This selection will be carried forward to assist you in completing your response

Select country

United States of America Switzerland

0.4

Currency selection Please select the currency in which you would like to submit your response. All financial information contained in the response should be in this currency. USD($)

0.6

Modules As part of the request for information on behalf of investors, electric utilities, companies with electric utility activities or assets, companies in the automobile or auto component manufacture sectors, companies in the oil and gas industry and companies in the information technology and telecommunications sectors should complete supplementary questions in addition to the main questionnaire.

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If you are in these sectors (according to the Global Industry Classification Standard (GICS)), the corresponding sector modules will not appear below but will automatically appear in the navigation bar when you save this page. If you want to query your classification, please email [email protected]. If you have not been presented with a sector module that you consider would be appropriate for your company to answer, please select the module below. If you wish to view the questions first, please see https://www.cdproject.net/en-US/Programmes/Pages/More-questionnaires.aspx.

Module: Management [Investor]

Page: 1. Governance

1.1

Where is the highest level of direct responsibility for climate change within your company? Senior Manager/Officer

1.1a

Please identify the position of the individual or name of the committee with this responsibility Richard Bagger, Senior Vice President of Global Corporate Affairs and Market Access, is one of thirteen members of the Senior Executive Management Committee and reports directly to the Chairman and Chief Executive Officer. This committee manages policy and strategy for Celgene worldwide.

1.2

Do you provide incentives for the management of climate change issues, including the attainment of targets? Yes

1.2a

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Please complete the table

Who is entitled to benefit from these incentives?

The type of incentives

Incentivized performance indicator

Other: Director of Engineering, Construction, and Carbon Management Monetary reward Completion of CDP, GRI, and improved GHG

inventory data management

Other: ECCM, EHS, and facilities Monetary reward Individual staff pay for performance is linked to environmental initiatives.

Environment/Sustainability managers Monetary reward Individual staff pay for performance is linked to environmental initiatives.

Facility managers Monetary reward Individual staff pay for performance is linked to environmental initiatives.

Page: 2. Strategy

2.1

Please select the option that best describes your risk management procedures with regard to climate change risks and opportunities Integrated into multi-disciplinary company wide risk management processes

2.1a

Please provide further details i) Scope of Process Celgene has a companywide risk management policy that incorporates risk elements associated with climate change. The policy establishes the process by which Celgene manages and responds to situations with the potential to present a significant impact to Celgene, its employees and/or the patients they serve, including the potential to disrupt or halt normal business operations at local, regional and/or global levels. Celgene defines these risks as crisis situations requiring expedited strategic decisions from senior management. The scope of the policy includes all crisis situations that arise at Celgene locations and the corporation’s contractors and marketing partners. A comprehensive policy to specifically address Sustainability and Environment Compliance, Opportunity, and Risk is currently being developed at Celgene. ii) At company level Site management and functional managers are responsible for communicating any potential crisis event to the Chair of Corporate Crisis Management Committee (Core Committee) as soon as possible. The Chief Compliance Officer (CCO) is the chair of the Core Committee. The Core Committee is convened to address a potential or real crisis concern and can determine the impact and, after consultation with the CEO, the need for convening an Extended Committee. Extended

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Committee members include Executive Leaders (Chief Executive Officer and Chief Financial Officer), regional managers and functional managers, as needed. Crisis management committees may also be convened at the local level as warranted. Celgene will manage crises guided by the following principles: preservation of life and/or relief of suffering; mitigation of harm; protection of employees, property and the environment; maintenance of business continuity; and maintenance of normality. The Committee Chair is responsible for documenting the crisis response strategy and coordinating all proposed actions as outlined in the strategy. Upon execution of a crisis response strategy the Committee will also identify root causes and implement long-term corrective actions including periodic follow up, as appropriate. iii) At asset level, criteria & frequency (Continual) Each site and business unit is responsible for continual awareness of potential crisis situations that could impact the site and/or business unit. Possible crisis situations can include a wide range of issues. Specific examples included in the policy are regulatory mandates, natural disasters (e.g. earthquakes hurricanes, floods), public service interruption (e.g. electricity, water, air travel, roads, railways), and public health threats. iv) Reporting The Committee Chair is responsible for communicating a crisis situation, the proposed crisis response strategy and, as appropriate, milestone reports to the CEO and Management Committee. The CEO or designee will update the Board of Directors, as appropriate.

2.2

Is climate change integrated into your business strategy? No

2.2a

Please describe the process and outcomes

2.2b

Please explain why not Celgene currently considers the primary business risks and opportunities associated with climate change are related to energy use and associated costs. Through integrating energy efficiency into our operation we see opportunities to mitigate these impacts to our business. Further evaluation of the potential impact of climate change is needed before climate change can be fully integrated into our business strategy. Celgene has formed a team to define a climate change business strategy for global operations. Within this strategy, business goals are in the process of being identified and aligned with the corporate goals as determined to be

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appropriate by the executive body. A comprehensive policy to specifically address Sustainability and Environmental Compliance, Opportunity, and Risk is currently being developed by Celgene. Company-wide emission reduction targets are being considered based on current operations, expectations of our shareholders, and valued input from our stakeholders.

2.3

Do you engage in activities that could either directly or indirectly influence policy on climate change through any of the following? (tick all that apply) Trade associations

2.3a

On what issues have you been engaging directly?

Focus of legislation Corporate Position Details of engagement Proposed solution

2.3b

Are you on the Board of any trade associations or provide funding beyond membership?

2.3c

Please enter the details of those trade associations that are likely to take a position on climate change legislation

Trade association

Is your position on climate change consistent with theirs?

Please explain the trade association's position

How have you, or are you attempting to influence the postion?

2.3d

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Do you publically disclose a list of all the research organizations that you fund?

2.3e

Do you fund any research organizations to produce public work on climate change?

2.3f

Please describe the work and how it aligns with your own strategy on climate change

2.3g

Please provide details of the other engagement activities that you undertake

2.3h

What processes do you have in place to ensure that all of your direct and indirect activities that influence policy are consistent with your overall climate change strategy?

2.3i

Please explain why you do not engage with policy makers

Page: 3. Targets and Initiatives

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3.1

Did you have an emissions reduction target that was active (ongoing or reached completion) in the reporting year? No

3.1a

Please provide details of your absolute target

ID

Scope

% of emissions in

scope

% reduction from base year

Base year

Base year emissions

(metric tonnes CO2e)

Target year

Comment

3.1b

Please provide details of your intensity target

ID

Scope

% of emissions in

scope

% reduction from base year

Metric

Base year

Normalized base year emissions

Target year

Comment

3.1c

Please also indicate what change in absolute emissions this intensity target reflects

ID

Direction of change anticipated in absolute Scope 1+2 emissions at

target completion?

% change anticipated in absolute Scope 1+2

emissions

Direction of change anticipated in absolute Scope 3 emissions at target

completion?

% change anticipated in absolute Scope 3

emissions

Comment

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3.1d

Please provide details on your progress against this target made in the reporting year

ID

% complete (time)

% complete (emissions)

Comment

3.1e

Please explain (i) why not; and (ii) forecast how your emissions will change over the next five years Celgene is currently considering proposed emissions reduction target options in both the United States and on a global scale. Further evaluation of the potential impact of emission reduction activities is needed before an attainable target can be set. Celgene's priorities continue to focus on how business is performed and making it more sustainable while still maintaining the flexibility to meet patients' needs into the future. It is anticipated that the trend for absolute greenhouse gas emissions will continue toward stabilization or improved reductions over the next several years as efficiency programs are implemented and operations are optimized in response to increased product demand.

3.2

Does the use of your goods and/or services directly enable GHG emissions to be avoided by a third party? No

3.2a

Please provide details (see guidance)

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3.3

Did you have emissions reduction initiatives that were active within the reporting year (this can include those in the planning and implementation phases) Yes

3.3a

Please identify the total number of projects at each stage of development, and for those in the implementation stages, the estimated CO2e savings

Stage of development

Number of projects

Total estimated annual CO2e savings in metric tonnes CO2e (only for rows marked *)

Under investigation 1 To be implemented* 2 Implementation commenced* 0 0 Implemented* 4 78 Not to be implemented 0

3.3b

For those initiatives implemented in the reporting year, please provide details in the table below

Activity type

Description of activity

Estimated annual CO2e

savings (metric tonnes CO2e)

Annual monetary savings

(unit currency -

as specified in Q0.4)

Investment required (unit currency - as specified in

Q0.4)

Payback period

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Activity type

Description of activity

Estimated annual CO2e

savings (metric tonnes CO2e)

Annual monetary savings

(unit currency -

as specified in Q0.4)

Investment required (unit currency - as specified in

Q0.4)

Payback period

Transportation: use

Celgene installed several electronic vehicle charging stations with the capacity to power several electric or electric-hybrid vehicles for employees at the several buildings at the Warren, New Jersey facility. The EV charging stations are anticipated to reduce commuter travel emissions by encouraging the use of more fuel efficient electric or electric-hybrid vehicles. These charging stations were installed and operational in 2012. The lifetime of these charging stations is estimated at 10-12 years before replacement .

6 0 3080 4-10 years

Low carbon energy installation

Celgene installed an 11 kW solar panel array at the Summit, New Jersey facility. This array is meant to decrease Celgene’s consumption of electricity from our local utility and fossil-fuel derived electricity.

14 10600 55600 4-10 years

Other

The food preparation area of the Cafeteria at the Summit, NJ facility, operated by Sodexo, has begun to collect food and organic waste into a separate waste stream that is sent to a facility to make compost. This program is meant to reduce our overall waste output that is normally sent to incineration and waste-to-energy operations and thereby decreasing respective emissions.

2 4000 5000 <1 year

Other Celgene has a recycling program in place at the Summit Facility. This program is meant to reduce our overall waste output that is normally sent to incineration and thereby decreasing respective emissions.

57 6000 6000 <1 year

3.3c

What methods do you use to drive investment in emissions reduction activities?

Method

Comment

Compliance with regulatory requirements/standards Dedicated budget for energy efficiency Dedicated budget for other emissions reduction activities

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Method

Comment

Employee engagement Financial optimization calculations Internal incentives/recognition programs

3.3d

If you do not have any emissions reduction initiatives, please explain why not

Page: 4. Communication

4.1

Have you published information about your company’s response to climate change and GHG emissions performance for this reporting year in places other than in your CDP response? If so, please attach the publication(s)

Publication

Page/Section reference

Attach the document

In voluntary communications (underway) – previous year attached

The “Supporting Environmental Health” section (pages 19-24) of the attached Celgene Corporate Responsibility Report discusses Celgene’s energy, greenhouse gas, and climate change performance. This report can also be accessed on our website.

https://www.cdproject.net/sites/2013/82/2982/Investor CDP 2013/Shared Documents/Attachments/Investor-4.1-C3-IdentifytAttachment/Investor-4.1-PublishedInformation1/CELGENE_RR2012_FINAL[1].pdf

Module: Risks and Opportunities [Investor]

Page: 5. Climate Change Risks

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5.1

Have you identified any climate change risks (current or future) that have the potential to generate a substantive change in your business operations, revenue or expenditure? Tick all that apply Risks driven by changes in regulation Risks driven by changes in physical climate parameters Risks driven by changes in other climate-related developments

5.1a

Please describe your risks driven by changes in regulation

ID

Risk driver

Description

Potential impact

Timeframe

Direct/Indirect

Likelihood

Magnitude of impact

RR-1

Cap and trade schemes

AB32 California Cap and Trade Program limits greenhouse gas emissions from large sources, including utilities. Although this program does not directly affect our facilities since Celgene facilities are not considered to be large sources of emissions under this program. This regulation will likely cause an increase in electricity and natural gas costs associated with energy purchasing for our facility in CA.

Increased operational cost 1-5 years Direct Very likely Medium

RR-2

Voluntary agreements

Celgene International Sarl (Boudry facility) joined a voluntary energy savings program of the Swiss Private Sector Energy Agency. As part of this agreement, the Boudry facility commits itself to the active reduction of CO2 emissions and to the optimization of energy efficiency. The Boudry facility has set an annual energy saving objective, agreeing that the savings are to be achieved on the basis of the effectiveness of the measures undertaken. Ten measures have been defined for 3 years according to a signed agreement with the Agency. Measures that have been implemented in 2012 include optimization of air handling of offices and fitness

Increased capital cost 6-10 years Direct Very likely Low

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ID

Risk driver

Description

Potential impact

Timeframe

Direct/Indirect

Likelihood

Magnitude of impact

center at the Boudry facility.

RR-3

General environmental regulations, including planning

The New Jersey Global Warming Response Act set statewide limits on greenhouse gas emissions in July 2007. The law mandates reductions in greenhouse gas emissions to 1990 levels by 2020, approximately a 20 percent reduction below estimated 2020 business-as-usual emissions, followed by a further reduction of emissions to 80 percent below 2006 levels by 2050.Celgene is not currently directly impacted by this act but could be impacted directly or indirectly by various state programs implemented to meet these limits in the future as Celgene has several facilities in NJ. Impacts could include increases in operating costs (fuel and electricity costs rise from increases in regulation and required reductions in GHG emissions) and increases in capital costs (resulting from requirements to comply with GHG reduction projects) Celgene will continue to monitor this risk.

Other: Increased capital cost; Increased operational cost

Unknown Direct Unknown Medium

RR-4

Cap and trade schemes

In 2011, New Jersey formally notified the Regional Greenhouse Gas Initiative (RGGI) Signatory States that it was withdrawing its agreement to the Memorandum of Understanding and would become a non-Signatory state in 2012. RGGI allocates CO2 allowances to Signatory States. There is risk that New Jersey may choose to join the RGGI again as changes in public office occur in the future or if the state legislature succeeds in their current effort to get this issue put on the November 2013 ballot. This risk is politically linked and the likelihood is unknown, but Celgene will continue to monitor this risk for its operations in NJ.

Other: Increased capital cost; Increased operational cost

Unknown Direct Unknown Medium

RR-5 Carbon taxes

Effective in 2008. Switzerland (Boudry facility). The Swiss carbon tax applies to natural gas and heating oil but does not apply to transport fuels, wood, or biomass.

Increased operational cost Current Direct Virtually

certain Medium

5.1b

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Please describe (i) the potential financial implications of the risk before taking action; (ii) the methods you are using to manage this risk and (iii) the costs associated with these actions RR-1. (i) Increase in electricity and natural gas costs associated with energy purchasing . (ii) The risk is being managed through energy reduction measures and employee energy conservation awareness training. (iii) Equipment replacement costs, building upgrades, employee energy conservation training . RR-2. (i) Increased capital costs required to meet agreements. (ii) The risk is being managed by evaluation of return on investment for each capital improvement project. (iii) Equipment replacement and upgrade costs. RR-3. (i) Increased capital and operating costs associated with various state implemented measures taken to reduce GHG emissions (e.g. low emission vehicle requirements, renewable energy portfolio standards, etc). (ii) Continued energy reduction measures and employee energy conservation awareness training, Continued evaluation of return on investment. (iii) Equipment replacement costs, building upgrades, employee energy conservation training. RR-4. (i) Capital costs associated with equipment replacement and building upgrades. Investment in carbon offsets. (ii) Continued energy reduction measures and employee energy conservation awareness training, Continued evaluation of return on investment. (iii) Equipment replacement costs, building upgrades, employee energy conservation training. RR-5. (i) Increased operating costs associated with purchasing natural gas. Capital costs associated with equipment replacement and building upgrades to reduce natural gas usage. (ii) Continued energy reduction measures and employee energy conservation awareness training, continued evaluation of return on investment, continuing use and increases in wood heating to reduce natural gas fuel purchases. (iii) There are costs associated with equipment replacements, building upgrades, and employee energy conservation training.

5.1c

Please describe your risks that are driven by change in physical climate parameters

ID

Risk driver

Description

Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

PR-1

Tropical cyclones (hurricanes and typhoons)

In 2012 Celgene experienced Hurricane Sandy which impacted our US facilities in New Jersey. Celgene did not experience business critical interruptions in product distribution or call center operations, however minor business operations were impacted. Staff were temporarily relocated from the corporate headquarters in Summit to alternate Celgene facilities. Celgene’s corporate headquarters in Summit is upgrading their emergency power systems to provide increased backup

Other: temporary staff relocation Current Direct Virtually

certain Medium

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ID

Risk driver

Description

Potential impact

Timeframe

Direct/Indirect

Likelihood

Magnitude of impact

capacity to cover seventy percent of the site operations.

PR-2

Uncertainty of physical risks

Extreme weather events such as droughts in Arizona or typhoons in California could affect several of our other facilities. All of our facilities have adequate emergency backup generators to address potential power outages associated with extreme weather events.

Reduction/disruption in production capacity 1-5 years Direct About as

likely as not Unknown

PR-3

Uncertainty of physical risks

Extreme weather events such as droughts, floods, hurricanes or typhoons, could affect our supply chain.

Reduction/disruption in production capacity 1-5 years

Indirect (Supply chain)

About as likely as not Unknown

5.1d

Please describe (i) the potential financial implications of the risk before taking action; (ii) the methods you are using to manage this risk; and (iii) the costs associated with these actions PR-1 (i) Celgene’s business operations in New Jersey were impacted in 2012 by Hurricane Sandy. Celgene did not experience business critical interruptions in product distribution or call center operations, however minor business operations were impacted. Staff were temporarily relocated from the corporate headquarters in Summit to alternate Celgene facilities. (ii) Celgene is managing this risk by upgrading their emergency power systems at Summit to provide increased backup capacity to cover seventy percent of the site operations. (iii) There are costs associated with these emergency power system upgrades. PR-2, (i) Potential loss of product or inability to supply the market could have financial implications. (ii) Celgene has already taken measures to protect operations from identifiable risks and determined that their other facilities (all except Summit) have adequate emergency backup generators to address potential power outages associated with extreme weather events. (iii). There are no current costs anticipated to manage these risks at this time. PR-3. (i) Potential loss of product or inability to supply the market could have financial implications.Manufacturing and distribution risks including a disruption at certain of our manufacturing and distribution sites would significantly interrupt our production capabilities, which could result in significant product delays and adversely affect our results. We have our own manufacturing facilities for many of our products and we have contracted with third-party manufacturers and distributors to provide active pharmaceutical ingredient, or API, encapsulation, finishing services, packaging and distribution services to meet our needs. These operations expose us to risks that include the possibility that our or our suppliers’ manufacturing processes and distribution channels could be partially or completely disrupted by a natural disaster. In the case of a disruption, we may need to establish alternative manufacturing sources for these products. This would likely lead to substantial production delays as we build or locate replacement facilities and seek and obtain the necessary regulatory approvals. If this occurs, and our finished goods inventories are insufficient to meet demand, we may be unable to satisfy customer orders on a timely basis, if at all. Further, our business interruption insurance may not adequately compensate us for any losses that may occur and we would have to bear the uncovered cost of any disruption. For these reasons, a significant disruptive event affecting these manufacturing facilities or sites could materially and adversely affect our business and results of operations.

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5.1e

Please describe your risks that are driven by changes in other climate-related developments

ID

Risk driver

Description

Potential impact

Timeframe

Direct/Indirect

Likelihood

Magnitude of impact

OR-1 Reputation

As global concern about the impacts of climate change continues to rise, companies are facing increasing pressure to actively participate in efforts to reduce their emissions of greenhouse gases. As a publicly listed company, Celgene recognizes that some financial shareholders are increasingly interested in the climate change policies and practices of the companies in which they invest. Other stakeholders including customers, consumers, employees, government agencies and local communities may also be concerned if Celgene does not participate effectively in reducing and planning for climate change impacts. These considerations are relevant to all regions where Celgene does business, but particularly in California where there is a high level of public awareness and concern about environmental issues.

Reduced stock price (market valuation)

6-10 years Indirect (Client)

About as likely as not Low

5.1f

Please describe (i) the potential financial implications of the risk before taking action; (ii) the methods you are using to manage this risk; (iii) the costs associated with these actions OR-1: Reputation (i) Celgene is aware that other companies, including some in our own sector, have faced shareholder criticism for failing to make meaningful commitments toward environmental sustainability and/or for a lack of transparency regarding their efforts and commitments in this respect. As a healthcare company, we do not have the high environmental profile that companies in other, more energy-intensive sectors do. However, we are a publicly listed company and we acknowledge the increasing evidence of linkages between share value and environmental performance. As we grow we believe that our environmental sustainability commitments will become of increasing interest to our shareholders and other stakeholders and that ultimately a failure to effectively respond could negatively impact our share value. We also recognize the linkages between climate change and human health and believe that as public awareness about these linkages grows, the credibility of our healthcare mission, and therefore our overall brand, could be undermined if we are not seen to be acting responsibly on issues such as climate change and water resources. Celgene’s success depends, in large part, on our continued ability to (i) attract and retain highly qualified management, scientific, manufacturing and commercial personnel, (ii) successfully integrate large numbers of new employees into our corporate culture and (iii)

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develop and maintain important relationships with leading research and medical institutions and key distributors. Competition for these types of personnel and relationships is intense. We recognize that employees, and particularly younger generations who are the future of our company, increasingly care about the environmental sustainability commitments of their employers and a failure to effectively integrate environmental sustainability to our business could negatively affect our ability to attract and retain high quality talent in the future, potentially undermining our competitiveness. We do not consider it possible to place a quantitative financial value on the implications of these risks at this time; however a reduction in the value of our stock would reduce our available capital and potentially impact our ability to continue our current growth trajectory. (ii) Celgene addressing environmental sustainability through our efforts to manage our energy and water use, increase energy efficiency and track GHG emissions, should serve to protect our reputation with stakeholders. Specific actions we are taking to ensure that our stakeholders are made aware of our efforts include annual response to the CDP Climate Change and Water questionnaires, and disclosure through our first annual GRI conformant corporate responsibility report in 2012. (iii) There are costs associated with completing these disclosures.

5.1g

Please explain why you do not consider your company to be exposed to risks driven by changes in regulation that have the potential to generate a substantive change in your business operations, revenue or expenditure

5.1h

Please explain why you do not consider your company to be exposed to risks driven by physical climate parameters that have the potential to generate a substantive change in your business operations, revenue or expenditure

5.1i

Please explain why you do not consider your company to be exposed to risks driven by changes in other climate-related developments that have the potential to generate a substantive change in your business operations, revenue or expenditure

Page: 6. Climate Change Opportunities

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6.1

Have you identified any climate change opportunities (current or future) that have the potential to generate a substantive change in your business operations, revenue or expenditure? Tick all that apply Opportunities driven by changes in regulation Opportunities driven by changes in other climate-related developments

6.1a

Please describe your opportunities that are driven by changes in regulation

ID

Opportunity driver

Description

Potential impact

Timeframe

Direct/Indirect

Likelihood

Magnitude of impact

RO-1

Cap and trade schemes

AB32 California Cap and Trade Program limits greenhouse gas emissions from large sources, including utilities. This regulation will likely cause an increase in electricity and natural gas costs associated with energy purchasing. The anticipated market response is reduction in energy usage, resulting in increased availability of carbon offsets.

Reduced operational costs

1-5 years Direct More likely than not Low

RO-2 Carbon taxes

Effective in 2008. Switzerland. One third of carbon tax was allocated to climate friendly building renovations, use of renewable energy and building engineering. The Swiss carbon tax applies to natural gas and heating oil but does not apply to transport fuels, wood, or biomass and its revenues are recycled back to consumers and businesses. Companies are allowed to exempt themselves from the tax by participating in a Swiss cap-and-trade emissions trading scheme where they voluntarily commit to legally binding targets to reduce their CO2 emissions.

Reduced operational costs

Current Direct Virtually certain Medium

6.1b

Please describe (i) the potential financial implications of the opportunity; (ii) the methods you are using to manage this opportunity and (iii) the costs associated with these actions

Page 20: FINAL Celgene 2013 Carbon CDP ProgrammeResponse · Carbon Disclosure Project CDP 2013 Investor CDP 2013 Information Request Celgene Corporation Module: Introduction Page: Introduction

RO-1. (i) Reduction in carbon offset price. (ii) Continued monitoring of AB32 implementation and evaluation of carbon offset price. (iii) There are minimal costs associated with monitoring this activity at this time. RO-2. (i) Reduction in carbon tax and reductions in energy consumption. (ii) Celgene International Sarl (Boudry facility) joined a voluntary energy savings program of the Swiss Private Sector Energy Agency. As part of this agreement, the Boudry facility commits itself to the active reduction of CO2 emissions and to the optimization of energy efficiency. (iii) The energy savings realized help offset the costs associated with these activities.

6.1c

Please describe the opportunities that are driven by changes in physical climate parameters

ID

Opportunity driver

Description

Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

6.1d

Please describe (i) the potential financial implications of the opportunity; (ii) the methods you are using to manage this opportunity and (iii) the costs associated with these actions

6.1e

Please describe the opportunities that are driven by changes in other climate-related developments

ID

Opportunity driver

Description

Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

OO- Reputation Companies that do their part to address environmental issues, such Increased 6-10 years Direct About as Low

Page 21: FINAL Celgene 2013 Carbon CDP ProgrammeResponse · Carbon Disclosure Project CDP 2013 Investor CDP 2013 Information Request Celgene Corporation Module: Introduction Page: Introduction

ID

Opportunity driver

Description

Potential impact

Timeframe

Direct/ Indirect

Likelihood

Magnitude of impact

1 as the effects of climate change and the depletion of natural resources will enhance their reputation, improve performance and gain competitive advantage. Celgene is addressing environmental sustainability through our commitment to environmental responsibility. Celgene is managing and measuring our environmental impacts and communicating these through CDP and GRI annual reporting.

stock price (market valuation)

likely as not

6.1f

Please describe (i) the potential financial implications of the opportunity; (ii) the methods you are using to manage this opportunity; (iii) the costs associated with these actions OO-1 (i) We currently do not know the full financial implications of climate related opportunities associated with our reputation; (ii) we are managing our opportunities for reputation improvements through our annual response to the CDP Climate Change and Water questionnaires, and disclosure through our first annual GRI conformant corporate responsibility report in 2012. (iii) There are costs associated with completing these disclosures.

6.1g

Please explain why you do not consider your company to be exposed to opportunities driven by changes in regulation that have the potential to generate a substantive change in your business operations, revenue or expenditure

6.1h

Please explain why you do not consider your company to be exposed to opportunities driven by physical climate parameters that have the potential to generate a substantive change in your business operations, revenue or expenditure

Page 22: FINAL Celgene 2013 Carbon CDP ProgrammeResponse · Carbon Disclosure Project CDP 2013 Investor CDP 2013 Information Request Celgene Corporation Module: Introduction Page: Introduction

Any physical changes posed by climate change are negative. Increased risk of extreme weather, droughts, fires, and heat waves would all negatively impact the Company’s operations.

6.1i

Please explain why you do not consider your company to be exposed to opportunities driven by changes in other climate-related developments that have the potential to generate a substantive change in your business operations, revenue or expenditure

Module: GHG Emissions Accounting, Energy and Fuel Use, and Trading [Investor]

Page: 7. Emissions Methodology

7.1

Please provide your base year and base year emissions (Scopes 1 and 2)

Base year

Scope 1 Base year emissions (metric tonnes

CO2e)

Scope 2 Base year emissions (metric

tonnes CO2e)

Tue 01 Jan 2008 - Wed 31 Dec 2008

6824 17800

7.2

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Please give the name of the standard, protocol or methodology you have used to collect activity data and calculate Scope 1 and Scope 2 emissions

Please select the published methodologies that you use

The Climate Registry: General Reporting Protocol The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (Revised Edition) US EPA Climate Leaders: Direct Emissions from Stationary Combustion US EPA Climate Leaders: Direct Emissions from Mobile Combustion Sources US EPA Climate Leaders: Indirect Emissions from Purchases/Sales of Electricity and Steam US EPA Climate Leaders: Direct HFC and PFC Emissions from Use of Refrigeration and Air Conditioning Equipment IPCC Guidelines for National Greenhouse Gas Inventories, 2006

7.2a

If you have selected "Other", please provide details below

7.3

Please give the source for the global warming potentials you have used

Gas

Reference

CH4 IPCC Second Assessment Report (SAR - 100 year) N2O IPCC Second Assessment Report (SAR - 100 year) CO2 IPCC Second Assessment Report (SAR - 100 year) HFCs Other: The Climate Registry: General Reporting Protocol

7.4

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Please give the emissions factors you have applied and their origin; alternatively, please attach an Excel spreadsheet with this data

Fuel/Material/Energy

Emission Factor

Unit

Reference

Natural gas 0.05 Other: kg CO2/scf

Climate Leaders’ Direct Emissions from Stationary Combustion guidance document, May 2008, Table B-5

Distillate fuel oil No 2 426.1 Other: kg CO2/barrel

Climate Leaders’ Direct Emissions from Stationary Combustion guidance document, May 2008, Table B-5

Wood or wood waste 1443.72 Other: kg CO2/ton

Climate Leaders’ Direct Emissions from Stationary Combustion guidance document, May 2008, Table A-1

Natural gas 0.1 Other: g N2O/MMBTU

Climate Leaders’ Direct Emissions from Stationary Combustion guidance document, May 2008, Table A-1

Distillate fuel oil No 2 0.6 Other: g N2O/MMBTU

Climate Leaders’ Direct Emissions from Stationary Combustion guidance document, May 2008, Table A-1

Wood or wood waste 4.2 Other: g N2O/MMBTU

Climate Leaders’ Direct Emissions from Stationary Combustion guidance document, May 2008, Table A-1

Natural gas 1 Other: g CH4/MMBTU

Climate Leaders’ Direct Emissions from Stationary Combustion guidance document, May 2008, Table A-1

Distillate fuel oil No 2 3 Other: g CH4/MMBTU

Climate Leaders’ Direct Emissions from Stationary Combustion guidance document, May 2008, Table A-1

Wood or wood waste 32 Other: g CH4/MMBTU

Climate Leaders GHG Protocol, Direct Emissions from Mobile Combustion Sources (May 2008), Tables A-1, A-6, A-7, B-1, and B-3

Other: Gasoline Light Duty Trucks 8.81 Other: kg

CO2/gal Climate Leaders GHG Protocol, Direct Emissions from Mobile Combustion Sources (May 2008), Tables A-1, A-6, A-7, B-1, and B-3

Other: Gasoline Light Duty Trucks 0.02 Other: g

N2O/mile Climate Leaders GHG Protocol, Direct Emissions from Mobile Combustion Sources (May 2008), Tables A-1, A-6, A-7, B-1, and B-3

Other: Gasoline Light Duty Trucks 0.01 Other: g

CH4/mile Climate Leaders GHG Protocol, Direct Emissions from Mobile Combustion Sources (May 2008), Tables A-1, A-6, A-7, B-1, and B-3

Other: Passenger Cars 8.81 Other: kg CO2/gal

Climate Leaders GHG Protocol, Direct Emissions from Mobile Combustion Sources (May 2008), Tables A-1, A-6, A-7, B-1, and B-3

Other: Passenger Cars 0.02 Other: g N2O/mile

Climate Leaders GHG Protocol, Direct Emissions from Mobile Combustion Sources (May 2008), Tables A-1, A-6, A-7, B-1, and B-3

Other: Passenger Cars 0.01 Other: g CH4/mile

Climate Leaders GHG Protocol, Direct Emissions from Mobile Combustion Sources (May 2008), Tables A-1, A-6, A-7, B-1, and B-3

Other: LPG light-duty vehicles 5.79 Other: kg

CO2/mile Climate Leaders GHG Protocol, Direct Emissions from Mobile Combustion Sources (May 2008), Tables A-1, A-6, A-7, B-1, and B-3

Page 25: FINAL Celgene 2013 Carbon CDP ProgrammeResponse · Carbon Disclosure Project CDP 2013 Investor CDP 2013 Information Request Celgene Corporation Module: Introduction Page: Introduction

Fuel/Material/Energy

Emission Factor

Unit

Reference

Other: LPG light-duty vehicles 0.07 Other: g

N2O/mile Climate Leaders GHG Protocol, Direct Emissions from Mobile Combustion Sources (May 2008), Tables A-1, A-6, A-7, B-1, and B-3

Other: LPG light-duty vehicles 0.04 Other: g

CH4/mile Climate Leaders GHG Protocol, Direct Emissions from Mobile Combustion Sources (May 2008), Tables A-1, A-6, A-7, B-1, and B-3

Electricity 60.38 lb CO2 per MWh International Energy Agency (IEA)'s CO2 Emissions from Fuel Combustion Highlights, 2010 Edition: http://www.iea.org/co2highlights/, Switzerland

Electricity 0.00066 Other: lb CH4/GWh

US Department of Energy’s Energy Information Administration website http://www.eia.doe.gov/oiaf/1605/emission_factors.html, Switzerland

Electricity 0.00011 Other: lb N2O/GWh

US Department of Energy’s Energy Information Administration website http://www.eia.doe.gov/oiaf/1605/emission_factors.html, Switzerland

Electricity 947.42 lb CO2 per MWh eGRID2012 Sub Region Emission Rates for RFC East, United States of America

Electricity 0.03 Other: lb CH4/MWh eGRID2012 Sub Region Emission Rates for RFC East, United States of America

Electricity 0.02 Other: lb N2O/MWh eGRID2012 Sub Region Emission Rates for RFC East, United States of America

Electricity 1191.35 lb CO2 per MWh eGRID2012 Sub Region Emission Rates for WECC Southwest, United States of America

Electricity 0.02 Other: lb CH4/MWh eGRID2012 Sub Region Emission Rates for WECC Southwest, United States of America

Electricity 0.02 Other: lb N2O/MWh eGRID2012 Sub Region Emission Rates for WECC Southwest, United States of America

Electricity 658.68 lb CO2 per MWh eGRID2012 Sub Region Emission Rates for WECC California, United States of America

Electricity 0.03 Other: lb CH4/MWh eGRID2012 Sub Region Emission Rates for WECC California, United States of America

Electricity 0.01 Other: lb N2O/MWh eGRID2012 Sub Region Emission Rates for WECC California, United States of America

Page: 8. Emissions Data - (1 Jan 2011 - 31 Dec 2011)

8.1

Please select the boundary you are using for your Scope 1 and 2 greenhouse gas inventory

Page 26: FINAL Celgene 2013 Carbon CDP ProgrammeResponse · Carbon Disclosure Project CDP 2013 Investor CDP 2013 Information Request Celgene Corporation Module: Introduction Page: Introduction

Equity share

8.2

Please provide your gross global Scope 1 emissions figures in metric tonnes CO2e 14463

8.3

Please provide your gross global Scope 2 emissions figures in metric tonnes CO2e 17361

8.4

Are there are any sources (e.g. facilities, specific GHGs, activities, geographies, etc.) of Scope 1 and Scope 2 emissions which are not included in your disclosure? Yes

8.4a

Please complete the table

Source

Scope

Explain why the source is excluded

Melrose Park, IL Facility Scope 1 and 2 Incomplete information for the period in question. Elk Grove Village, IL Facility Scope 1 and 2 Incomplete information for the period in question.

Page 27: FINAL Celgene 2013 Carbon CDP ProgrammeResponse · Carbon Disclosure Project CDP 2013 Investor CDP 2013 Information Request Celgene Corporation Module: Introduction Page: Introduction

8.5

Please estimate the level of uncertainty of the total gross global Scope 1 and 2 emissions figures that you have supplied and specify the sources of uncertainty in your data gathering, handling and calculations

Scope 1

emissions: Uncertainty

range

Scope 1

emissions: Main sources of uncertainty

Scope 1 emissions: Please expand on

the uncertainty in your data

Scope 2

emissions: Uncertainty

range

Scope 2

emissions: Main sources of uncertainty

Scope 2 emissions: Please expand on

the uncertainty in your data

More than 10% but less than or equal to 20%

Assumptions Metering/ Measurement Constraints Data Management

Utility metering data, used to collect natural gas usage activity data comprising the majority of Scope 1 emissions, has minor uncertainty associated with equipment accuracy. HFCs emissions, the second largest source of Scope 1 emissions, are primarily based upon estimates for equipment leakage rates rather than actual data and have a much greater degree of uncertainty. The majority of the fuel oil usage data is metered but a portion of the fuel oil usage data is estimated based upon fuel purchase records and equipment run times resulting in some uncertainty. Although a minor source of emissions, gasoline usage for mobile sources is estimated based upon mileage and fuel efficiency estimates. Potential for uncertainty also lies in data management practices as the activity data is manually transferred from invoicing records to data collection spreadsheets and then to calculation spreadsheets.

More than 2% but less than or equal to 5%

Metering/ Measurement Constraints Data Management

Utility metering data is used to collect electricity usage activity data. Although utility meters are routinely calibrated by the utilities the metering data is subject to minor uncertainties associated with the accuracy of the metering equipment. Potential for uncertainty also lies in data management practices as the activity data is manually transferred from utility invoicing records to data collection spreadsheets and then to calculation spreadsheets.

8.6

Page 28: FINAL Celgene 2013 Carbon CDP ProgrammeResponse · Carbon Disclosure Project CDP 2013 Investor CDP 2013 Information Request Celgene Corporation Module: Introduction Page: Introduction

Please indicate the verification/assurance status that applies to your Scope 1 emissions No third party verification or assurance

8.6a

Please indicate the proportion of your Scope 1 emissions that are verified/assured

8.6b

Please provide further details of the verification/assurance undertaken, and attach the relevant statements

Type of verification or assurance

Relevant standard

Attach the document

8.6c

Please provide further details of the regulatory regime to which you are complying that specifies the use of Continuous Emissions Monitoring Systems (CEMS)

Regulation % of emissions covered by the system Compliance period

Evidence of submission

8.7

Please indicate the verification/assurance status that applies to your Scope 2 emissions No third party verification or assurance

Page 29: FINAL Celgene 2013 Carbon CDP ProgrammeResponse · Carbon Disclosure Project CDP 2013 Investor CDP 2013 Information Request Celgene Corporation Module: Introduction Page: Introduction

8.7a

Please indicate the proportion of your Scope 2 emissions that are verified/assured

8.7b

Please provide further details of the verification/assurance undertaken, and attach the relevant statements

Type of verification or assurance

Relevant standard

Attach the document

8.8

Are carbon dioxide emissions from biologically sequestered carbon relevant to your organization? Yes

8.8a

Please provide the emissions in metric tonnes CO2 655

Further Information

The 2011 emissions are being restated to reflect improvements in data availability and quality.

Page 30: FINAL Celgene 2013 Carbon CDP ProgrammeResponse · Carbon Disclosure Project CDP 2013 Investor CDP 2013 Information Request Celgene Corporation Module: Introduction Page: Introduction

Page: 8. Emissions Data - (1 Jan 2012 - 31 Dec 2012)

8.1

Please select the boundary you are using for your Scope 1 and 2 greenhouse gas inventory Equity share

8.2

Please provide your gross global Scope 1 emissions figures in metric tonnes CO2e 14458

8.3

Please provide your gross global Scope 2 emissions figures in metric tonnes CO2e 18420

8.4

Are there are any sources (e.g. facilities, specific GHGs, activities, geographies, etc.) of Scope 1 and Scope 2 emissions which are not included in your disclosure? Yes

8.4a

Page 31: FINAL Celgene 2013 Carbon CDP ProgrammeResponse · Carbon Disclosure Project CDP 2013 Investor CDP 2013 Information Request Celgene Corporation Module: Introduction Page: Introduction

Please complete the table

Source

Scope

Explain why the source is excluded

Melrose Park, IL Scope 1 and 2 Incomplete information for the period in question.

8.5

Please estimate the level of uncertainty of the total gross global Scope 1 and 2 emissions figures that you have supplied and specify the sources of uncertainty in your data gathering, handling and calculations

Scope 1

emissions: Uncertainty

range

Scope 1

emissions: Main sources of uncertainty

Scope 1 emissions: Please expand on

the uncertainty in your data

Scope 2

emissions: Uncertainty

range

Scope 2

emissions: Main sources of uncertainty

Scope 2 emissions: Please expand on

the uncertainty in your data

More than 10% but less than or equal to 20%

Assumptions Metering/ Measurement Constraints Data Management

Utility metering data, used to collect natural gas usage activity data comprising the majority of Scope 1 emissions, has minor uncertainty associated with equipment accuracy. HFCs emissions, the second largest source of Scope 1 emissions, are primarily based upon estimates for equipment leakage rates rather than actual data and have a much greater degree of uncertainty. The majority of the fuel oil usage data is metered but a portion of the fuel oil usage data is estimated based upon fuel purchase records and equipment run times resulting in some uncertainty. Although a minor source of emissions, gasoline usage for mobile sources is estimated based upon mileage and fuel efficiency estimates. Potential for uncertainty also lies in data management practices as the activity data is manually

More than 2% but less than or equal to 5%

Metering/ Measurement Constraints Data Management

Utility metering data is used to collect electricity usage activity data. Although utility meters are routinely calibrated by the utilities the metering data is subject to minor uncertainties associated with the accuracy of the metering equipment. Potential for uncertainty also lies in data management practices as the activity data is manually transferred from utility invoicing records to data collection spreadsheets and then to calculation spreadsheets.

Page 32: FINAL Celgene 2013 Carbon CDP ProgrammeResponse · Carbon Disclosure Project CDP 2013 Investor CDP 2013 Information Request Celgene Corporation Module: Introduction Page: Introduction

Scope 1

emissions: Uncertainty

range

Scope 1

emissions: Main sources of uncertainty

Scope 1 emissions: Please expand on

the uncertainty in your data

Scope 2

emissions: Uncertainty

range

Scope 2 emissions:

Main sources of uncertainty

Scope 2 emissions: Please expand on

the uncertainty in your data

transferred from invoicing records to data collection spreadsheets and then to calculation spreadsheets.

8.6

Please indicate the verification/assurance status that applies to your Scope 1 emissions Third party verification or assurance complete

8.6a

Please indicate the proportion of your Scope 1 emissions that are verified/assured More than 90% but less than or equal to 100%

8.6b

Please provide further details of the verification/assurance undertaken, and attach the relevant statements

Type of verification or assurance

Relevant standard

Attach the document

Limited assurance ISO14064-3 https://www.cdproject.net/sites/2013/82/2982/Investor CDP 2013/Shared Documents/Attachments/Investor-8.6b-

Page 33: FINAL Celgene 2013 Carbon CDP ProgrammeResponse · Carbon Disclosure Project CDP 2013 Investor CDP 2013 Information Request Celgene Corporation Module: Introduction Page: Introduction

Type of verification or assurance

Relevant standard

Attach the document

C3-RelevantStatement/Investor-8.6b-VerificationDetails1/Celgene CDP verification form 2013.pdf

8.6c

Please provide further details of the regulatory regime to which you are complying that specifies the use of Continuous Emissions Monitoring Systems (CEMS)

Regulation % of emissions covered by the system Compliance period

Evidence of submission

8.7

Please indicate the verification/assurance status that applies to your Scope 2 emissions Third party verification or assurance complete

8.7a

Please indicate the proportion of your Scope 2 emissions that are verified/assured More than 90% but less than or equal to 100%

8.7b

Please provide further details of the verification/assurance undertaken, and attach the relevant statements

Page 34: FINAL Celgene 2013 Carbon CDP ProgrammeResponse · Carbon Disclosure Project CDP 2013 Investor CDP 2013 Information Request Celgene Corporation Module: Introduction Page: Introduction

Type of verification or assurance

Relevant standard

Attach the document

Limited assurance ISO14064-3 https://www.cdproject.net/sites/2013/82/2982/Investor CDP 2013/Shared Documents/Attachments/Investor-8.7b-C3-RelevantStatement/Investor-8.7b-VerificationDetailsS21/Celgene CDP verification form 2013.pdf

8.8

Are carbon dioxide emissions from biologically sequestered carbon relevant to your organization? Yes

8.8a

Please provide the emissions in metric tonnes CO2 829

Page: 9. Scope 1 Emissions Breakdown - (1 Jan 2011 - 31 Dec 2011)

9.1

Do you have Scope 1 emissions sources in more than one country? Yes

9.1a

Page 35: FINAL Celgene 2013 Carbon CDP ProgrammeResponse · Carbon Disclosure Project CDP 2013 Investor CDP 2013 Information Request Celgene Corporation Module: Introduction Page: Introduction

Please complete the table below

Country/Region

Scope 1 metric tonnes CO2e

United States of America 14235 Switzerland 227

9.2

Please indicate which other Scope 1 emissions breakdowns you are able to provide (tick all that apply) By facility By GHG type By activity

9.2a

Please break down your total gross global Scope 1 emissions by business division

Business division

Scope 1 emissions (metric tonnes CO2e)

9.2b

Please break down your total gross global Scope 1 emissions by facility

Facility

Scope 1 emissions (metric tonnes CO2e)

Latitude

Longitude

Page 36: FINAL Celgene 2013 Carbon CDP ProgrammeResponse · Carbon Disclosure Project CDP 2013 Investor CDP 2013 Information Request Celgene Corporation Module: Introduction Page: Introduction

Facility

Scope 1 emissions (metric tonnes CO2e)

Latitude

Longitude

Boudry 227 46.9500 6.8333 Cedar Knolls 20 40.8218 -74.4500 Phoenix 8901 33.4484 -112.0740 San Diego 750 32.7153 -117.1573 Summit 4036 40.7161 -74.3625 Warren 528 40.6342 -74.5004

9.2c

Please break down your total gross global Scope 1 emissions by GHG type

GHG type

Scope 1 emissions (metric tonnes CO2e)

CO2 7068 CH4 8 N2O 14 HFCs 7353

9.2d

Please break down your total gross global Scope 1 emissions by activity

Activity

Scope 1 emissions (metric tonnes CO2e)

Stationary Combustion 7056 Mobile Combustion 48 Refrigeration and Fire Suppression 7353

Page 37: FINAL Celgene 2013 Carbon CDP ProgrammeResponse · Carbon Disclosure Project CDP 2013 Investor CDP 2013 Information Request Celgene Corporation Module: Introduction Page: Introduction

Activity

Scope 1 emissions (metric tonnes CO2e)

Lab Chemicals 6

9.2e

Please break down your total gross global Scope 1 emissions by legal structure

Legal structure Scope 1 emissions (metric tonnes CO2e)

Further Information

The 2011 emissions are being restated to reflect improvements in data availability and quality.

Page: 9. Scope 1 Emissions Breakdown - (1 Jan 2012 - 31 Dec 2012)

9.1

Do you have Scope 1 emissions sources in more than one country? Yes

9.1a

Please complete the table below

Country/Region

Scope 1 metric tonnes CO2e

Page 38: FINAL Celgene 2013 Carbon CDP ProgrammeResponse · Carbon Disclosure Project CDP 2013 Investor CDP 2013 Information Request Celgene Corporation Module: Introduction Page: Introduction

Country/Region

Scope 1 metric tonnes CO2e

United States of America 14100 Switzerland 358

9.2

Please indicate which other Scope 1 emissions breakdowns you are able to provide (tick all that apply) By facility By GHG type By activity

9.2a

Please break down your total gross global Scope 1 emissions by business division

Business division

Scope 1 emissions (metric tonnes CO2e)

9.2b

Please break down your total gross global Scope 1 emissions by facility

Facility

Scope 1 emissions (metric tonnes CO2e)

Latitude

Longitude

Boudry 358 46.9500 6.8333 Cedar Knolls 29 40.8218 -74.4500

Page 39: FINAL Celgene 2013 Carbon CDP ProgrammeResponse · Carbon Disclosure Project CDP 2013 Investor CDP 2013 Information Request Celgene Corporation Module: Introduction Page: Introduction

Facility

Scope 1 emissions (metric tonnes CO2e)

Latitude

Longitude

Phoenix 8921 33.4484 -112.0740 San Diego 677 32.7153 -117.1573 Summit 3908 40.7161 -74.3625 Warren 565 40.6342 -74.5004

9.2c

Please break down your total gross global Scope 1 emissions by GHG type

GHG type

Scope 1 emissions (metric tonnes CO2e)

CO2 6983 CH4 8 N2O 16 HFCs 7450

9.2d

Please break down your total gross global Scope 1 emissions by activity

Activity

Scope 1 emissions (metric tonnes CO2e)

Stationary Combustion 6948 Mobile Combustion 50 Refrigeration and Fire Suppression 7450 Lab Chemicals 10

Page 40: FINAL Celgene 2013 Carbon CDP ProgrammeResponse · Carbon Disclosure Project CDP 2013 Investor CDP 2013 Information Request Celgene Corporation Module: Introduction Page: Introduction

9.2e

Please break down your total gross global Scope 1 emissions by legal structure

Legal structure Scope 1 emissions (metric tonnes CO2e)

Page: 10. Scope 2 Emissions Breakdown - (1 Jan 2011 - 31 Dec 2011)

10.1

Do you have Scope 2 emissions sources in more than one country? Yes

10.1a

Please complete the table below

Country/Region

Scope 2 metric tonnes CO2e

Purchased and consumed electricity, heat, steam or cooling (MWh)

Purchased and consumed low carbon electricity, heat, steam or cooling (MWh)

United States of America 17257 37742 0 Switzerland 104 3794 1

10.2

Please indicate which other Scope 2 emissions breakdowns you are able to provide (tick all that apply) By facility By activity

Page 41: FINAL Celgene 2013 Carbon CDP ProgrammeResponse · Carbon Disclosure Project CDP 2013 Investor CDP 2013 Information Request Celgene Corporation Module: Introduction Page: Introduction

10.2a

Please break down your total gross global Scope 2 emissions by business division

Business division

Scope 2 emissions (metric tonnes CO2e)

10.2b

Please break down your total gross global Scope 2 emissions by facility

Facility

Scope 2 emissions (metric tonnes CO2e)

Boudry 104 Cedar Knolls 154 Phoenix 7757 San Diego 1435 Summit 7039 Warren 872

10.2c

Please break down your total gross global Scope 2 emissions by activity

Activity

Scope 2 emissions (metric tonnes CO2e)

Purchased Electricity 17361

Page 42: FINAL Celgene 2013 Carbon CDP ProgrammeResponse · Carbon Disclosure Project CDP 2013 Investor CDP 2013 Information Request Celgene Corporation Module: Introduction Page: Introduction

10.2d

Please break down your total gross global Scope 2 emissions by legal structure

Legal structure

Scope 2 emissions (metric tonnes CO2e)

Further Information

The 2011 emissions are being restated to reflect improvements in data availability and quality.

Page: 10. Scope 2 Emissions Breakdown - (1 Jan 2012 - 31 Dec 2012)

10.1

Do you have Scope 2 emissions sources in more than one country? Yes

10.1a

Please complete the table below

Country/Region

Scope 2 metric tonnes CO2e

Purchased and consumed electricity, heat, steam or cooling (MWh)

Purchased and consumed low carbon electricity, heat, steam or cooling (MWh)

United States of America 18306 40075 31 Switzerland 114 4174 42

10.2

Page 43: FINAL Celgene 2013 Carbon CDP ProgrammeResponse · Carbon Disclosure Project CDP 2013 Investor CDP 2013 Information Request Celgene Corporation Module: Introduction Page: Introduction

Please indicate which other Scope 2 emissions breakdowns you are able to provide (tick all that apply) By facility By activity

10.2a

Please break down your total gross global Scope 2 emissions by business division

Business division

Scope 2 emissions (metric tonnes CO2e)

10.2b

Please break down your total gross global Scope 2 emissions by facility

Facility

Scope 2 emissions (metric tonnes CO2e)

Boudry 114 Cedar Knolls 240 Phoenix 8171 San Diego 1534 Summit 6864 Warren 1497

10.2c

Page 44: FINAL Celgene 2013 Carbon CDP ProgrammeResponse · Carbon Disclosure Project CDP 2013 Investor CDP 2013 Information Request Celgene Corporation Module: Introduction Page: Introduction

Please break down your total gross global Scope 2 emissions by activity

Activity

Scope 2 emissions (metric tonnes CO2e)

Purchased Electricity 18420

10.2d

Please break down your total gross global Scope 2 emissions by legal structure

Legal structure

Scope 2 emissions (metric tonnes CO2e)

Page: 11. Energy

11.1

What percentage of your total operational spend in the reporting year was on energy?

11.2

Please state how much fuel, electricity, heat, steam, and cooling in MWh your organization has purchased and consumed during the reporting year

Energy type

MWh

Fuel 41106 Electricity 44248 Heat Steam

Page 45: FINAL Celgene 2013 Carbon CDP ProgrammeResponse · Carbon Disclosure Project CDP 2013 Investor CDP 2013 Information Request Celgene Corporation Module: Introduction Page: Introduction

Energy type

MWh

Cooling

11.3

Please complete the table by breaking down the total "Fuel" figure entered above by fuel type

Fuels

MWh

Diesel/Gas oil 275 Distillate fuel oil No 2 5 Liquefied petroleum gas (LPG) 2 Motor gasoline 203 Natural gas 38016 Propane 0.6 Wood or wood waste 2604

11.4

Please provide details of the electricity, heat, steam or cooling amounts that were accounted at a low carbon emission factor

Basis for applying a low carbon emission factor

MWh associated with low carbon electricity, heat, steam or cooling

Comments

Non-grid connected low carbon heat, steam or cooling, generation owned by company

2604 The Boudry facility used wood pellets as a source of fuel to heat the building.

Non-grid connected low carbon electricity not owned by company, no instruments created

31 On-site solar panels at the Summit facility generated and provided 31.3 MWh of electricity to the main building.

Page 46: FINAL Celgene 2013 Carbon CDP ProgrammeResponse · Carbon Disclosure Project CDP 2013 Investor CDP 2013 Information Request Celgene Corporation Module: Introduction Page: Introduction

Basis for applying a low carbon emission factor

MWh associated with low carbon electricity, heat, steam or cooling

Comments

Tracking instruments, Guarantees of Origin 42

The Boudry facility purchased 42 MWh of renewable energy from Sun Valley as part of their ongoing commitment to reducing carbon emissions and optimizing energy efficiency through the Swiss Private Sector Energy Agency’s Voluntary Climate Protection Program. The certificate for this energy has been certified through naturemade star.

Page: 12. Emissions Performance

12.1

How do your absolute emissions (Scope 1 and 2 combined) for the reporting year compare to the previous year? Increased

12.1a

Please complete the table

Reason

Emissions value (percentage)

Direction of change

Comment

Emissions reduction activities 0.2 Decrease Emission reduction activities were implemented at several facilities Divestment Acquisitions Mergers Change in output Change in methodology Change in boundary Change in physical operating conditions 3 Increase Energy consumption at Celgene’s US facilities increased due to changes in

weather patterns (hotter summer and cooler winter). Unidentified

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Reason

Emissions value (percentage)

Direction of change

Comment

Other

12.2

Please describe your gross combined Scope 1 and 2 emissions for the reporting year in metric tonnes CO2e per unit currency total revenue

Intensity figure

Metric numerator

Metric denominator

% change from previous year

Direction of change from previous year

Reason for change

0.000006 metric tonnes CO2e unit total revenue 9.16 Decrease Emissions did not increase at the same rate as

company revenue growth.

12.3

Please describe your gross combined Scope 1 and 2 emissions for the reporting year in metric tonnes CO2e per full time equivalent (FTE) employee

Intensity figure

Metric numerator

Metric denominator

% change from

previous year

Direction of change from previous year

Reason for change

18.67 metric tonnes CO2e FTE employee 10.77 Decrease

Despite an increase in the number of employees, Celgene’s work space utilization (employees per square foot) also increased, resulting in minimal impact on GHG emissions due to additional employees.

12.4

Page 48: FINAL Celgene 2013 Carbon CDP ProgrammeResponse · Carbon Disclosure Project CDP 2013 Investor CDP 2013 Information Request Celgene Corporation Module: Introduction Page: Introduction

Please provide an additional intensity (normalized) metric that is appropriate to your business operations

Intensity figure

Metric numerator

Metric denominator

% change from previous year

Direction of change from previous year

Reason for change

0.03 metric tonnes CO2e square foot 2.83 Increase

Energy consumption at Celgene’s US facilities primarily increased due to changes in weather patterns (hotter summer and cooler winter).

Page: 13. Emissions Trading

13.1

Do you participate in any emissions trading schemes? No, and we do not currently anticipate doing so in the next 2 years

13.1a

Please complete the following table for each of the emission trading schemes in which you participate

Scheme name

Period for which data is supplied

Allowances allocated

Allowances purchased

Verified emissions in metric tonnes CO2e

Details of ownership

13.1b

What is your strategy for complying with the schemes in which you participate or anticipate participating?

Page 49: FINAL Celgene 2013 Carbon CDP ProgrammeResponse · Carbon Disclosure Project CDP 2013 Investor CDP 2013 Information Request Celgene Corporation Module: Introduction Page: Introduction

13.2

Has your company originated any project-based carbon credits or purchased any within the reporting period? No

13.2a

Please complete the table

Credit origination

or credit purchase

Project type

Project identification

Verified to which standard

Number of credits (metric

tonnes of CO2e)

Number of credits (metric tonnes

CO2e): Risk adjusted volume

Credits retired

Purpose, e.g. compliance

Page: 14. Scope 3 Emissions

14.1

Please account for your organization’s Scope 3 emissions, disclosing and explaining any exclusions

Sources of Scope 3

emissions

Evaluation status

metric tonnes CO2e

Methodology

Percentage of

emissions calculated

using primary

data

Explanation

Purchased goods and services

Relevant, not yet calculated

Emissions from purchased goods and services include those activities associated with the following suppliers: Medical Devices, Engineering and Construction Services, Raw Goods and materials for processing &

Page 50: FINAL Celgene 2013 Carbon CDP ProgrammeResponse · Carbon Disclosure Project CDP 2013 Investor CDP 2013 Information Request Celgene Corporation Module: Introduction Page: Introduction

Sources of Scope 3

emissions

Evaluation status

metric tonnes CO2e

Methodology

Percentage of

emissions calculated

using primary

data

Explanation

manufacturing Celgene’s pharmaceutical products, Consulting Services. Additional data must be obtained from suppliers before a reasonable emissions inventory from this source can be developed.

Capital goods Relevant, not yet calculated

Additional data must be obtained before a reasonable emissions inventory from this source can be developed.

Fuel-and-energy-related activities (not included in Scope 1 or 2)

Relevant, not yet calculated

Additional data must be obtained before a reasonable emissions inventory from this source can be developed.

Upstream transportation and distribution

Relevant, not yet calculated

Additional data must be obtained from suppliers before a reasonable emissions inventory from this source can be developed.

Waste generated in operations

Relevant, calculated 163

(i) At this time, the solid waste generation emissions are limited to the Summit, NJ facility based upon data availability. Celgene has identified the waste contractor’s waste treatment method for the Summit, NJ facility as incineration. The estimated annual solid waste disposal quantity provided by the waste contractor is used to calculate GHG emissions. The methodology (including emission factors, other variables) used to calculate emissions from incinerated solid waste is derived from the Local Government Operations Protocol v1.1 (May 2010) and USEPA’s Greenhouse Gas Mandatory Reporting Rule Subpart C (2009). GWPs source is the IPCC Second Assessment Report (SAR - 100 year). (ii) The waste tonnage data collected are estimated values provided directly from the source (waste contractor) and considered to be good quality. (iii) To determine CO2e emissions from waste incineration, the waste tonnage is converted to units of energy

100%

This source of Scope 3 emissions is associated with Celgene's contracted municipal solid waste disposal that is ultimately sent to an off-site incineration facility landfill. The decomposition of organic solid waste in the landfill results in a release of greenhouse gas emissions. Celgene has implemented waste recycling and composting programs in an effort to reduce the quantity of waste being disposed.

Page 51: FINAL Celgene 2013 Carbon CDP ProgrammeResponse · Carbon Disclosure Project CDP 2013 Investor CDP 2013 Information Request Celgene Corporation Module: Introduction Page: Introduction

Sources of Scope 3

emissions

Evaluation status

metric tonnes CO2e

Methodology

Percentage of

emissions calculated

using primary

data

Explanation

(mmbtu) using the appropriate heat content. The energy is then multiplied by the appropriate emission factor and then multiplied by the appropriate GWP, summed, and converted to metric tonnes. GHG emissions from municipal solid waste (MSW) incineration include CO2 emissions resulting from the incineration of waste of fossil fuel origin (e.g. plastics, certain textiles, rubber, liquid solvents, and waste oil) and CO2 emissions from combusting the biomass portion of MSW (e.g., yard or food waste, paper products, etc.) The biomass combustion portion is separately calculated and reported as biogenic CO2 emissions. A default assumption of 56% biogenic waste is used based on 2005 US Energy Information Administration (EIA) MSW data. 91 metric tonnes CO2e is considered biogenic and 72 metric tonnes CO2e is non-biogenic.

Business travel Relevant, calculated 14926

(i) Actual airline miles by segment length were collected for Celgene companywide through a corporate travel system. Emission factors source is Climate Leaders GHG Protocol Optional Emissions from Commuting, Business Travel, and Product Transport (May 2008). GWPs source is the IPCC Second Assessment Report (SAR - 100 year). Celgene has three shuttle vans that are operated by a 3rd Party. These shuttle vans transport people to and from various New Jersey locations for Celgene business purposes only. Actual miles for these shuttles were collected through the shuttle company. Emission factors source is Climate Leaders GHG Protocol, Direct Emissions from Mobile Combustion Sources (May 2008). GWPs source is the IPCC Second Assessment Report (SAR - 100 year). (ii)The airline mileage data collected are actual

100%

This source of Scope 3 emissions includes official Celgene employee business travel. Methods of business travel typically include airplane, shuttle, taxi cab/limo and rental vehicles, but could also include some personal vehicle, bus or rail travel. Currently, actual airline miles companywide and New Jersey shuttle data is available. Efforts will continue in 2013 to better characterize and collect additional business travel data.

Page 52: FINAL Celgene 2013 Carbon CDP ProgrammeResponse · Carbon Disclosure Project CDP 2013 Investor CDP 2013 Information Request Celgene Corporation Module: Introduction Page: Introduction

Sources of Scope 3

emissions

Evaluation status

metric tonnes CO2e

Methodology

Percentage of

emissions calculated

using primary

data

Explanation

values provided directly from the source (travel system) and considered to be very good quality. The shuttle mileage data collected are actual values provided by the 3rd Party operator. However, a portion of these miles were determined to be associated with employee commuting and an assumption was made based on the shuttle route schedule. The shuttle fuel use is estimated by applying the USEPA fuel efficiency provided at www.fuelecononmy.gov to the total mileage. Therefore the shuttle data is considered to be good quality. (iii) To determine CO2e emissions from business air travel, the total number of air miles travelled is multiplied by the appropriate emission factor by segment and then multiplied by the appropriate GWP, summed, and converted to metric tonnes. To determine CO2e emissions from the shuttle van operations, the total annual mileage or fuel use gallons is multiplied by the appropriate emission factor and then multiplied by the appropriate GWP, summed, and converted to metric tonnes.

Employee commuting

Relevant, not yet calculated

Employee commuting includes the travel of Celgene employees between their homes and primary work location. The primary method of employee commuting is a single-person occupied personal vehicle. Other methods include employee carpooling, walking, bicycling and public transportation (train, bus). Emissions from employee commuting include those from the combustion of fuels. Efforts are being considered to better characterize and collect employee commuting data.

Page 53: FINAL Celgene 2013 Carbon CDP ProgrammeResponse · Carbon Disclosure Project CDP 2013 Investor CDP 2013 Information Request Celgene Corporation Module: Introduction Page: Introduction

Sources of Scope 3

emissions

Evaluation status

metric tonnes CO2e

Methodology

Percentage of

emissions calculated

using primary

data

Explanation

Upstream leased assets

Relevant, not yet calculated

Additional data must be obtained before a reasonable emissions inventory from this source can be developed.

Investments Not relevant, explanation provided

Celgene is not an investor or a company that provides financial services.

Downstream transportation and distribution

Relevant, not yet calculated

Additional data must be obtained before a reasonable emissions inventory from this source can be developed.

Processing of sold products

Relevant, not yet calculated

Additional data must be obtained before a reasonable emissions inventory from this source can be developed.

Use of sold products

Not relevant, explanation provided

The end users of Celgene’s pharmaceutical products do not contribute significant GHG emissions.

End of life treatment of sold products

Not relevant, explanation provided

Celgene’s pharmaceutical products do not contribute significant GHG emissions from their disposal.

Downstream leased assets

Not relevant, explanation provided

Celgene has only one facility that is currently leased to another entity. This does not contribute significant GHG emissions to Celgene’s total anticipated scope 3 emissions.

Franchises Not relevant, explanation provided Celgene is not a franchisor.

Other (upstream) Other (downstream)

14.2

Page 54: FINAL Celgene 2013 Carbon CDP ProgrammeResponse · Carbon Disclosure Project CDP 2013 Investor CDP 2013 Information Request Celgene Corporation Module: Introduction Page: Introduction

Please indicate the verification/assurance status that applies to your Scope 3 emissions Third party verification or assurance complete

14.2a

Please indicate the proportion of your Scope 3 emissions that are verified/assured More than 90% but less than or equal to 100%

14.2b

Please provide further details of the verification/assurance undertaken, and attach the relevant statements

Type of verification or

assurance

Relevant standard

Attach the document

Limited assurance ISO14064-3 https://www.cdproject.net/sites/2013/82/2982/Investor CDP 2013/Shared Documents/Attachments/Investor-14.2b-C3-RelevantStatementAttached/Investor-14.2b-VerificationDetails1/Celgene CDP verification form 2013.pdf

14.3

Are you able to compare your Scope 3 emissions for the reporting year with those for the previous year for any sources? No, this is our first year of estimation

Page 55: FINAL Celgene 2013 Carbon CDP ProgrammeResponse · Carbon Disclosure Project CDP 2013 Investor CDP 2013 Information Request Celgene Corporation Module: Introduction Page: Introduction

14.3a

Please complete the table

Sources of Scope 3

emissions

Reason for change

Emissions value

(percentage)

Direction of change

Comment

14.4

Do you engage with any of the elements of your value chain on GHG emissions and climate change strategies? (Tick all that apply) No, we do not engage

14.4a

Please give details of methods of engagement, your strategy for prioritizing engagements and measures of success

14.4b

To give a sense of scale of this engagement, please give the number of suppliers with whom you are engaging and the proportion of your total spend that they represent

Number of suppliers % of total spend Comment

14.4c

Page 56: FINAL Celgene 2013 Carbon CDP ProgrammeResponse · Carbon Disclosure Project CDP 2013 Investor CDP 2013 Information Request Celgene Corporation Module: Introduction Page: Introduction

If you have data on your suppliers’ GHG emissions and climate change strategies, please explain how you make use of that data How you make use of the data

Please give details

14.4d

Please explain why not and any plans you have to develop an engagement strategy in the future Further evaluation of the potential impact of Celgene's value chain on GHG emissions is needed before a climate change engagement strategy for our value chain can be developed.

Module: Sign Off

Page: Sign Off

Please enter the name of the individual that has signed off (approved) the response and their job title Doug MacGorman - Director of Engineering, Construction and Carbon Management

CDP