MASHINIi

LONZA GROUP AG.

LO3.XETRA | Manufacture of pharmaceuticals, medicinal chemical and botanical products

Lonza Group AG is a global contract development and manufacturing organization (CDMO) serving the pharmaceutical, biotech, and nutrition markets. The company provides a range of services, including custom manufacturing of active pharmaceutical ingredients (APIs), biologics, and cell and gene therapi...Show More

Ethical Profile

Mixed.

Lonza Group AG presents a mixed ethical record. While recognized as a World's Most Ethical Company for the third time in 2024, it faces challenges. Reports suggest a child labor incident with a third-party supplier, though Lonza terminated a supplier over suspected child labor. Environmental concerns include over $1.6 million in penalties since 2000, with 2024 emissions around 2.3 billion kg CO2e. A 2017 FDA warning cited sterility failures. Lonza holds validated SBTi targets for a 42% emissions reduction by 2030 and aims for 100% renewable electricity by 2025. A gender pay gap also exists, with women earning 92p for every £1.

Value Scores

Better Health for All20
-100100
Fair Money & Economic Opportunity0
-100100
Fair Pay & Worker Respect40
-100100
Fair Trade & Ethical Sourcing-50
-100100
Honest & Fair Business-40
-100100
Kind to Animals-20
-100100
No War, No Weapons0
-100100
Planet-Friendly Business-40
-100100
Respect for Cultures & Communities0
-100100
Safe & Smart Tech30
-100100
Zero Waste & Sustainable Products-30
-100100

Better Health for All

20

Lonza Group AG operates as a contract development and manufacturing organization (CDMO) for the pharmaceutical, biotech, and nutrition markets. Its core business involves custom manufacturing of active pharmaceutical ingredients (APIs), biologics, cell and gene therapies, and nutritional ingredients. The company's purpose is to turn customers’ break-through innovations into viable therapies and manufacture the medicines of tomorrow.

1
Lonza supports the development and delivery of patient treatments, including new molecules for rare diseases and oncology.
2
It also provides services to improve drug solubility
3
and has developed a next-generation vector system.
4

Fair Money & Economic Opportunity

0

Lonza Group AG is a contract development and manufacturing organization (CDMO) serving the pharmaceutical, biotech, and nutrition markets. Its core business does not involve lending, insuring, moving, or storing money for consumers. Therefore, all KPIs related to fair money and economic opportunity, which are designed for financial institutions, are not applicable to Lonza's business model, aligning with the 0-tier definitions provided in the rubric for companies outside the financial services sector.

Fair Pay & Worker Respect

40

Lonza Group AG reported a Recordable Work-related Injury Rate (TRIR) of 0.52 per 200,000 worked hours in 2024, demonstrating robust safety management.

1
The company's voluntary employee turnover rate was 7.4% in 2024, showing strong workforce stability.
2
For its UK subsidiary, Lonza Biologics PLC, women earned 92p for every £1 earned by men in median hourly pay during 2023-24, indicating active gap-closure initiatives.
3

Fair Trade & Ethical Sourcing

-50

Lonza conducts on-site audits for tier-1 suppliers, on average, every three years.

1
In 2024, contracts representing 11% of total spend were enhanced with ethical-sourcing clauses.
2
The company reported one confirmed child labor incident in a US third-party services provider of two direct suppliers, which resulted in supplier termination.
3

Honest & Fair Business

-40

Lonza published "Restated Financials" for 2023 (including half-year and full-year reports), 2022 (full-year), and unspecified periods in 2020 and 2019.

1
This indicates an average of 0.8 financial restatements per year over the past five years. The company has a comprehensive anti-bribery and anti-corruption policy outlined in its Code of Conduct, which prohibits bribery and facilitation payments.
2
This policy is supported by yearly online training courses covering anti-corruption.
3
Furthermore, a formal whistleblower protection policy is in place, featuring a 24/7 multi-lingual Ethics and Compliance Hotline operated by a third-party, which offers anonymity where legally permissible.
4
However, there is no evidence provided regarding the independence of the investigation processes for reports filed through the hotline. No specific data was available for ethics-related regulatory fines in the past three years, a recognized transparency index score, the percentage of revenue or assets covered by independent external audit, a severity-weighted ESG controversy score, median complaint resolution time, the percentage of board members free from material conflicts of interest, or the extent of independent verification of broad ethical claims.

Kind to Animals

-20

Lonza conducts animal testing only when required by regulatory authorities

1
, actively seeking validated alternatives
2
, and ensuring protocols are approved by institutional ethics boards and IACUCs
3
. This policy prohibits discretionary testing, though legal mandates still override alternatives. For pyrogen testing, non-animal assays are standard in regulatory submissions
4
, with the traditional rabbit pyrogen test used only by exception in Europe
5
. Additionally, a senior Lonza staff member serves on the Atlantic States Marine Fisheries Commission Technical Committee for the horseshoe crab and on the joint team of the ASMFC and Shorebirds Commission
6
, contributing to the development of specific welfare standards
7
.

No War, No Weapons

0

The provided articles do not contain specific, quantifiable evidence regarding Lonza Group AG's involvement in arms manufacturing, military contracts, dual-use technologies, sales to embargoed regimes, or investments in peacebuilding initiatives. While the company was recognized as one of the 2024 World's Most Ethical Companies®

1
and prepares disclosures in accordance with modern slavery and forced labor acts
2
, these general ethical recognitions and compliance statements do not provide the specific data points required by the rubric's KPIs, such as percentages of revenue from defense, scope of dual-use R&D, or frequency of human rights due diligence in conflict zones. Information on specific policies, audits, or divestment actions related to war or weapons is not available.

Planet-Friendly Business

-40

Lonza Group AG reported total Scope 1, 2, and 3 greenhouse gas emissions of 2.33 million tCO2e in 2024, a 5.28% decrease from 2.46 million tCO2e in 2023.

1
The company's near-term science-based emissions reduction targets were validated by the Science Based Targets initiative (SBTi) in February 2024, including a commitment to reduce absolute Scope 1 and 2 GHG emissions by 42% by 2030 from a 2021 base year.
2
In 2024, 52% of electricity consumed was sourced from renewables
3
, with a target for 100% renewable power for US operations by 2026.
4
The company achieved a 60% waste diversion rate for non-hazardous waste to recycling in 2021.
5
In 2023, 35% of solvents used were recycled or reused.
6
Lonza covers 80% of its spend with supplier sustainability evaluations
7
, and in 2024, 33% of Scope 3 emissions originated from suppliers with science-based targets.
8
A TCFD report is included in the Sustainability Report.
9
The company has faced environmental compliance violations, with the latest specific record being a pesticide violation in 2013.
10

Respect for Cultures & Communities

0

No specific quantitative data or concrete facts related to Lonza Group AG's respect for cultures and communities were provided across the articles. The available information focuses on general sustainability, governance, compliance, employee headcount, and internal ethics procedures, without detailing community engagement, cultural impact assessments, partnerships with indigenous groups, local employment ratios, or cultural preservation efforts.

1

Safe & Smart Tech

30

Lonza demonstrates a strong commitment to security training, with over 99% of employees and associates completing mandatory cybersecurity and data privacy training.

1
The company maintains an exemplary regulatory compliance program, aligning with numerous international and national regulations including cGMP, FDA, EMA, REACH, TSCA, Prop 65, China-REACH, K-REACH, K-BPR, KKDIK, UK-REACH, GHS, GDPR, CCPA, PIPL, and the Swiss Data Protection Act, reporting no significant instances of non-compliance leading to fines in 2024.
2
Lonza has a formal AI ethics policy with oversight, integrating AI risk assessments into its cybersecurity strategy.
3
For user data control, the company provides users with rights to opt-out of marketing, access, correct, delete, restrict, be forgotten, and request data portability, in compliance with CCPA and PIPL.
4
Data minimization practices include retaining personal information only as long as necessary, restricting access, irreversibly anonymizing or securely destroying unneeded data, and retaining candidate details for up to one year.
5

Zero Waste & Sustainable Products

-30

Lonza Group AG achieved a 35% solvent recycling rate in 2023, an increase from 30% in 2022.

1
This initiative diverts 35% of solvent waste from incineration, with 20% of solvents reused in their API process and 15% sold for reuse, totaling approximately 10,000 tons recycled/reused in 2023.
2
The company employs multiple technologies for solvent recovery, including 10 FCC distillation columns, 7 Solvent Recovery Plant distillation columns, and Pervaporation.
3
These efforts resulted in a CO2 emissions reduction of over 40,000 tons in 2023.
4
Lonza has set a future target to increase its solvent recycling rate to 70%.
5

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AI-generated analysis based on publicly available data. Not financial advice. Ratings are expressions of opinion derived from automated models and may contain inaccuracies. See our Risk Disclosure for full details.