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 9.5%

Corporate Governance and business ethics

BB Biotech emphasizes that both its internal processes and those managed by the Investment Manager uphold compliance, data protection, stakeholder engagement, and good business practices. The Board acknowledges its responsibility for the environmental, social, and governance (ESG) impact of its activities and integrates corporate governance as a core aspect of its operations.

Corporate governance policies are tailored to the companyʼs size and complexity, with transparency ensured through publicly available documents, including the articles of incorporation, organizational regulations, and committee charters. The Corporate Governance report complements the annual report, detailing governance policies and their implementation.

As a company listed on Swiss and German stock exchanges, BB Biotech adheres to the respective regulations. In 2022, the Board established a «Sustainability and Governance Committee», defining its roles, responsibilities, and charter.

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 policy on these aspects is accessible on www.bbbiotech.com.

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. In 2024, BB Biotech AG’s rating conducted by the independent ESG rating agency Inrate, was again upgraded from B- to B. Therewith, the company was again included in the SPI ESG Index in Switzerland. Eventually, in December 2024 MSCI ESG has initiated its rating on BB Biotech AG with a solid A rating. We consider these developments very promising in the context of enhanced ESG visibility to international investors that require ESG coverage by leading sustainability agencies.

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

BB Biotechʼs Board of Directors establishes the investment strategy and guidelines for the investment manager, incorporating ESG dimensions into the process. Investment decisions are made by the Investment Management Team at Bellevue Asset Management AG.