Sustainability at Board of Directors level

Economic performance

The economic performance is essential for creating long-term value for our stakeholders with a portfolio of diversified biotech companies.

In terms of portfolio size and market capitalization, BB Biotech is one of the largest biotech investors globally. The annual average performance of BB Biotech’s shares since inception in 1993 is 10.4% as at December 31, 2023.

Corporate Governance and business ethics

It is of significant importance to BB Biotech that the internal processes of the company itself as well as those delegated to the Investment Manager drive good business practices with respect to compliance with laws and regulations, data protection as well as distribution and interaction with stakeholders. The Board of Directors is aware that activities will inevitably have direct or indirect consequences on environmental, social and corporate governance issues and that these consequences are their responsibility. Corporate governance is an integral component of the business of BB Biotech. The Board of Directors is committed to implement corporate governance policies which are aligned with the size and complexity of the company’s activities. We ensure transparency for our shareholders by disclosing the articles of incorporation, the organizational regulations, the Audit & Risk Committee Charter as well as the Remuneration and Nomination Committee Charter on our website. The Corporate Governance report is intended to supplement the annual report with regards to corporate governance policies and implementation of these policies in our business. As BB Biotech AG is listed on the Swiss and German, stock exchanges, the Company is required to comply with the rules and regulations that apply to each of these markets. In terms of Sustainability Governance, the Board of Directors introduced a ‹Sustainability and Governance Committee› in 2022. Roles and responsibilities as well as the constitution were defined in March 2022. A Committee Charter has been made public.

Diversity, equal opportunities and non-discrimination

We are of the belief that diversity and inclusion, and people with different backgrounds, competencies and perspectives are key components to long-term success. BB Biotech’s focus is on having a diverse Board of Directors whilst ensuring that they also have the relevant experience to oversee investments in the field of biotechnology. The Board of Directors is well diversified in terms of age, gender, expertise and geographical location. The Board of Directors conducts periodically salary benchmarks to ensure competitive and equal compensation. An updated policy on these aspects is accessible on www.bbbiotech.ch.

Transparency

BB Biotech’s environment, social and governance (ESG) performance is reviewed on a regular basis by independent ESG rating agencies. Whereas we welcome the feedback from and collaboration with these important stakeholders it is also a learning process for both parties as investment companies structurally do not fit into the rating agencies’ current measures. Based on our continuous progress the ESG Impact Rating for BB Biotech AG conducted by the independent ESG rating Inrate was upgraded in the course of 2023, which has led to the inclusion into the SPI ESG Index in Switzerland. This index inclusion has further increased BB Biotech’s visibility among investors.

The ratings and feedback provided by various ESG rating agencies are one of the factors that are taken into consideration when continuously aiming at improving BB Biotech’s ESG performance – and there is a commitment by the Board of Directors to further improve going forward.

Responsible investing

The competent Board of Directors of BB Biotech with its long-standing experience sets the investment strategy and guidelines for the Investment Manager. It thereby considers all ESG dimensions in the definition of the investment guidelines. Investment decisions are taken by the experienced Investment Management Team at Bellevue Asset Management AG based on their extensive investment research.