Over the past year we have seen an increasing instability of the geopolitical situation, effects of climate change and rapidly changing economic pressures. In tumultuous times like these, sustainable investment decisions are becoming increasingly important. We, the Board of Directors of BB Biotech AG, are confident that investing in the biotechnology sector, as it is one of the most important innovation areas of the 21st century, will achieve long-term success.
As an active investor, BB Biotech invests in a concentrated, high-conviction biotech portfolio. The portfolio companies’ products address areas of significant unmet medical needs and thus have not only above-average sales and profit-growth potential but also a significant positive impact on society. Our long-standing experience along with our robust and frequent engagement with senior management of our portfolio companies, combined with our structured investment process provide for long-term and sustainable value for our shareholders. The focus on long-term sustainability is embedded across our business behavior.
The basic aim of biotechnology is to meet human needs or demands in order to improve quality of life.
Investors might be drawn to familiar green industries like electric vehicles or solar panel manufacturers, or explicitly socially conscious brands. However, many of the most valuable ESG investments are in more fundamental sectors like biotech. The basic aim of biotechnology is to meet human needs or demands in order to improve quality of life. It ranks among the most attractive of all fast growing industries with an average annual growth in revenue of more than 10% from 2016 to 2021, with total revenues in 2016 of USD 139.4 billion to USD 216.7 billion in 20211.
BB Biotech AG strives to be in the leading group of companies with respect to sustainability. That’s why we have made sustainability a priority for the Board of Directors and I was appointed as Chairwoman of the «Sustainability and Governance Committee» to lead our efforts on sustainability in close collaboration with the delegated Investment Manager.
BB Biotech AG strives to be in the leading group of companies with respect to sustainability.
In 2022, BB Biotech AG put more emphasis on sustainability than ever before. We have contracted the ESG rating agency Sustainalytics to assess BB Biotech independently. Our operational model was rated «Medium risk» (23.7 points). We scored positively high in the areas of Board Management Quality & Integrity, Board Structure and Diversity, Ownership & shareholder risk, Audit and Financial Governance as well as Impact on Climate/ Environmental impact. A relative comparison to peers is not yet meaningful as the rating agency has not enough reliable ESG data for investment companies or trusts. In 2023 we’re focusing on further formalizing our ESG governance and policies.
We continue providing as much information and transparency on our processes and results as possible to give investors the information they need to succeed.
1 Ernst & Young Report: Beyond Borders