Sustainable Development Goals (SDG)
BB Biotech supports the integration of ESG into its portfolio companies’ business practices by being an engaged owner, supporting and engaging through dialogue with management teams and voting on topics at general meetings etc.
It is our belief that having an active dialogue with the management teams of our portfolio companies is essential from an ESG perspective. Engaging with our portfolio companies on ESG is a journey and a constant learning process for all parties involved.
For our listed portfolio companies we source data from public data platforms and distribute ESG questionnaires to our portfolio companies. Over more than 30 years of existence we have constantly developed our approach to responsible investing, and we are well aware that we still have much to learn and that this is a dynamic process. Responsible investing has been core to BB Biotech since its inception in 1993.
Through our expertise and investments in biotech companies we believe that we have an important role in contributing to improving people’s health. Investing in biotech companies that are developing new drugs for unmet medical needs is clearly in line with UN Sustainable Goal no 3 which aim to ensure healthy lives and promote well-being for all at all ages.
Biotech companies play a crucial role in advancing medical research, developing new treatments and improving healthcare overall. By investing in these companies BB Biotech contributes to the advancement of medical science and development of new treatments which will eventually improve global health and well-being.
SDGs at Board of Directors of BB Biotech AG and the Investment Manager level:
Based on the operating model as an investment company, the following four SDGs are most relevant for BB Biotech on Board of Director and Investment Manager level: good health and well-being (3), quality education (4), gender equality (5), decent work and economic growth (8) and climate action (13). This is where BB Biotech can have the most significant impact.
Goal 3: Ensure healthy lives and promote well-being for all at all ages
Through our expertise and investments in biotech companies we believe that we have an important role in contributing to improving people’s health.
Good health and well-being is an integrated part of BB Biotech’s investment strategy. Providing companies with capital, engagement and support for the development of new drugs is at the core for the Board of Directors and the Investment Manager. Therapies that address unmet medical needs, for example patients suffering from rare disorders, cancer, neurological diseases and chronic and metabolic disorders, are some of the key selection criterion when the Investment Manager makes investment decisions. The goal is to improve the patients’ quality of life, ideally curing the disease, with the treatment making an important positive difference to patients and society as a whole.
Some companies we invest in that are developing new drugs contribute directly to UN Sustainable Goal no 3 which aim to ensure healthy lives and promote well-being for all at all ages. Biotech companies play a crucial role in advancing medical research, developing new treatments and improving healthcare overall. By investing in these companies BB Biotech contributes to the advancement of medical science and development of new treatments which will eventually improve global health and well-being.
In 2023 we saw several approvals of new drugs from BB Biotech’s portfolio companies including Qalsody developed by Ionis for the treatment of SOD1 Amyotrophy Lateral Sclerosis, Vyvgart Hytrulo developed by Argenx for the treatment of Generalized Myasthenia Gravis, Casgevy developed by Crispr and Vertex for the treatment of Sickle Cell Disease and Wainua developed by Ionis for the treatment of Polyneuropathy of Hereditary Transthyretin-mediated Amyloidosis. The continuous approvals of new drugs from BB Biotech´s portfolio companies are a testament to that our investments do in fact result in improving peoples' life. Also in the future we are expecting the portfolio companies to contribute with several new drug approvals.
Goal 4: Ensure inclusive, equitable and quality education and promote lifelong learning opportunities for all
BB Biotech encourages continuing education for all employees and promotes life-long learning.
Goal 5: Achieve gender equality and empower all women and girls
BB Biotech fosters a culture of gender equality and promote a balanced mix of gender and age across all hierarchical levels and functions of the company.
Goal 8: Promote inclusive and sustainable economic growth, employment and decent work for all
BB Biotech and its delegated Investment Manager offer attractive, family-friendly working condition, promotes diversity, has a competitive salary policy with equal pay for women and men, and is committed to the training and development of its employees.
Goal 13: Take urgent action to combat climate change and its impacts
BB Biotech and its delegated Investment Manager ensure that responsible operational ecology contributes to CO2 reduction. What cannot be further reduced is compensated for by purchasing CO2 emission certificates in the amount of the greenhouse gas emissions emitted each year ensuring our CO2 neutrality commitment.
SDGs at portfolio level:
Portfolio level relates to the portfolio companies that BB Biotech are invested in. At the portfolio level UN SDG’s are considered in order to derive the proportion of «sustainable investments» (c.f. also chapter «Proportion of ESG investments»). The concept of «Sustainable investments» introduces a positive contribution to an environmental and/or a social objective while not significantly harming any of these objectives. Furthermore, the portfolio companies must apply practices of good corporate governance.
ESG research provider MSCI ESG measures the target contribution of companies to each of the SDGs and categorizes them as «strongly aligned», «aligned», «neutral», «misaligned» and «strongly misaligned». A positive contribution to an environmental or social objective hence requires a company to exhibit a positive alignment with at least one of the 17 UN SDGs and at the same time not negatively influence any other SDG.
As at December 31, 2023, BB Biotech AG exhibits a share of 76.5% in sustainable investments. Thereby, the portfolio contributes to the following six UN SDGs that are marked in colour:
Some of BB Biotech’s portfolio companies positively contribute to UN SDG No.1 (No Poverty), No.3 (Good Health & Well-Being), No.5 (Gender Equality), No.8 (Decent Work and Economic Growth), No. 10 (Reduced Inequalities) as well as No. 13 (Climate Action). Innovative biotech companies play a key role in contributing to the underlying objectives of «Good Health and Well-Being». To ensure healthy lives and promote well-being for all at all ages, UN SDG target No. 3.4.1 (mortality rate attributed to cardiovascular disease, cancer, diabetes or chronic respiratory disease) is particularly important.
According to MSCI ESG’s SDG alignment methodology, the following core portfolio holdings are positively aligned with the narrowly defined goals under UN SDG No.3: Alnylam Pharmaceuticals, Agios Pharmaceuticals, Esperion Therapeutics, Exelixis, Incyte, Ionis Pharmaceuticals, Vertex Pharmaceuticals and Argenx.