Environmental, Social, and Governance (ESG) risks

At Orion, environmental, social and governance (ESG) risks are an integrated part of our risk management process and governance model. Our approach to identify ESG risks is comprehensive, aligned with double materiality assessment framework, to consider every stage of our value chain, end-to-end from supply chain to our own production and onward to distribution channels. To identify risks, we also leverage scenario analysis for climate and biodiversity, maintain continuous monitoring of our operating environment, gather stakeholder feedback, and closely screen relevant regulations. 

During the risk management process, identified risks are assessed so that the most significant ESG risks impacting our business can be prioritized and managed effectively. Each year, material sustainability-related risks are reported in our annual Sustainability Statement as part of Orion’s Financial Statements, demonstrating our commitment to transparency and accountability.

Environmental risks

Environmental risks are present in all parts of Orion’s value chain; within own operations, in the supply chain and also in and after the use-phase of Orion’s products. The most significant environmental risks are associated with pollution, especially related to pharmaceuticals in the environment, material and water use, and dependencies on natural products and ecosystem services. Climate change is a pervasive driver with systemic impacts that shapes the severity and probability of risks in Orion’s other risk categories, through both physical impacts and transition-related developments.

Social risks

Social risks are present across Orion’s value chain. While risks exist also within Orion’s own operations, the most significant social risks are associated with the supply chain and with product quality and patient safety. These include labour and human rights risks affecting workers in upstream and lower tier suppliers, access to safe water and sanitation for affected communities, and product quality, clinical research ethics, and patient safety risks that could adversely impact patients, regulatory compliance, and the company’s reputation.

Governance risks

Governance risks are present across Orion’s own operations and value chain, and are closely linked to, ethical business conduct, regulatory compliance and the robustness of corporate governance and risk management frameworks. The most significant governance risks relate to management of supply chain, integrity of business practices and data protection, and compliance with complex and constantly evolving ESG related regulation. Weaknesses in governance, controls or oversight could lead to regulatory sanctions, legal disputes, financial losses and reputational damage, and may also exacerbate Orion’s environmental and social risks.

Learn more in our Sustainability Statement.