Teva Becomes First Pharmaceutical Company to Execute Sustainability-linked Bond Tied to both Climate and Access to Medicine Targets
- $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
TEL AVIV, Israel--(BUSINESS WIRE)--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.
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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