Teva Becomes First Pharmaceutical Company to Execute Sustainability-linked Bond Tied to both Climate and Access to Medicine Targets
November 03 2021 - 6:00AM
Business Wire
- $5 billion bond is the largest of its kind from any sector and
the first issued by a generic medicines company
- The bond is tied to targets that include improving access to
medicines in low- and middle-income countries (LMICs) and reducing
greenhouse gas (GHG) emissions
Teva Pharmaceutical Industries Ltd. (NYSE and TASE: TEVA)
announced ambitious commitments to address two of today’s greatest
global crises—access to medicines and climate change—tied to its
recently issued $5 billion sustainability-linked bond. The bond is
linked to three targets, including a 25% reduction in Scope 1 and 2
greenhouse gas (GHG) emissions and a 150% increase in access to
essential medicines for patients in low- and middle-income
countries (LMICs) by the end of 2025.
“A key part of our environmental, social and governance (ESG)
efforts is helping the world in ways we’re uniquely positioned to
deliver,” says Kåre Schultz, CEO of Teva. “For Teva, that means
leveraging our extensive portfolio of essential medicines to expand
access for patients in low- and middle-income countries, as well as
engaging our global operations to reduce greenhouse gas emissions.
This effort demonstrates Teva’s commitment to society and
accelerates our impact.”
Teva is the only pharmaceutical company linking both social and
environmental targets to a bond. In addition to the bond’s Scope 1
and Scope 2 emissions targets, Teva recently announced a 2030
target to reduce Scope 3 GHG emissions by 25%. Together, these
environmental targets aim to reduce emissions across Teva’s value
chain in line with the Paris Climate Agreement. Teva’s novel access
targets include a 150% increase in both the number of registrations
and products provided through access programs in LMICs. The targets
cover treatments on the World Health Organization’s Model List of
Essential Medicines—of which Teva is the leading provider—driving
access to the most efficacious, safe and cost-effective
treatments.
Two second party opinions (SPO) validated Teva’s
sustainability-linked financing framework. ISS ESG, the world's
leading provider of ESG solutions for shareholders, provided a
positive SPO on the alignment of the framework with the
International Capital Markets Association (ICMA)
Sustainability-linked Bond Principles. The Access to Medicine
Foundation, an independent non-profit organization focused on
access in LMICs, provided the final SPO that covered the relevance,
robustness and social benefit of Teva’s access targets.
Teva plans to report and verify externally its performance
against each target in its annual ESG Progress Report.
Find additional information on this offering here.
About Teva
Teva Pharmaceutical Industries Ltd. (NYSE and TASE: TEVA) has
been developing and producing medicines to improve people’s lives
for more than a century. We are a global leader in generic and
specialty medicines with a portfolio consisting of over 3,500
products in nearly every therapeutic area. Around 200 million
people around the world take a Teva medicine every day, and are
served by one of the largest and most complex supply chains in the
pharmaceutical industry. Along with our established presence in
generics, we have significant innovative research and operations
supporting our growing portfolio of specialty and biopharmaceutical
products. Learn more at www.tevapharm.com.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995, which are based on management’s current beliefs and
expectations and are subject to substantial risks and
uncertainties, both known and unknown, that could cause our future
results, performance or achievements to differ significantly from
that expressed or implied by such forward-looking statements.
Important factors that could cause or contribute to such
differences include risks relating to: completion of the offering
of sustainability-linked senior notes and related refinancing; our
ability to achieve or report on the progress or achievement of the
ESG targets set forth in our sustainability-linked senior notes or
sustainability-related financing framework, including impediments
to achieving such targets that are outside of our control, and
reputational risks related to any failure to achieve such targets;
our substantial indebtedness, which may limit our ability to incur
additional indebtedness, engage in additional transactions or make
new investments, and may result in a further downgrade of our
credit ratings; our inability to raise debt or borrow funds in
amounts or on terms that are favorable to us; and other factors
discussed in our Annual Report on Form 10-K for the year ended
December 31, 2020, including the sections thereof captioned “Risk
Factors” and “Forward Looking Statements,” and in our subsequent
quarterly reports on Form 10-Q and other filings with the SEC,
which are available at www.sec.gov. Forward-looking statements
speak only as of the date on which they are made, and we assume no
obligation to update or revise any forward-looking statements or
other information contained herein, whether as a result of new
information, future events or otherwise. You are cautioned not to
put undue reliance on these forward-looking statements. No
assurance can be given that the transactions described herein will
be consummated or as to the ultimate terms of any such
transactions.
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IR Contacts: Kevin C. Mannix, United States, (215) 591-8912 Yael
Ashman, Israel, 972 (3) 914-8262
PR Contacts: Kelley Dougherty, United States, (973) 832-2810
Yonatan Beker, United States, (973) 264-7378
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