Responsible Business governance

The Haleon Board has overall responsibility for the Group’s Responsible Business strategy. Our Section 172 statement in our 2022 Annual Report and Form 20-F details the topics reviewed, discussed and debated by the Board during the year. In March 2023, the Board established an Environmental & Social Sustainability Committee of the Board. The Committee’s role is to provide oversight and effective governance over progress of the environmental and social sustainability agenda at Haleon and the external governance and regulatory requirements relevant to these areas.

Our Executive Team is responsible for supporting the delivery of our Responsible Business strategy and driving responsible business performance. The Responsible Business strategy is managed via three executive-led committees, the Environment Steering Committee, Health Inclusivity Steering Committee and Human Rights Steering Committee. The Committees are sponsored by members of our Executive team including our Head of Transformation and Sustainability, Chief Supply Chain Officer, Chief Procurement Officer and Chief Human Resources Officer. The Executive Team receive quarterly updates on responsible business matters.

For more information click here to see our Environmental & Social Sustainability Committee Terms of Reference.

Embedding Responsible Business Governance

Working groups set up in our global functions, global categories and business units integrate responsible business targets, principles and initiatives into their strategic business planning processes, capital planning and budgeting, day-to-day responsibilities. Progress is kept under review and measured via metrics through our Responsible Business scorecards. The Executive Team considers responsible business factors and monitors performance against metrics and targets as part of its core business activities. The Executive Team receives quarterly updates on progress against the metrics in our Responsible Business scorecards and progression towards our 2025 and 2030 Responsible Business commitments.

ESG is one of our principal risks which is monitored through our risk management mitigation framework. Risk management processes are built into the day-to-day activities of our global functions and business units.  More information can be found in our 2022 Annual Report and Form 20-F.

Responsible Business scorecards

Responsible Business scorecards at enterprise and business unit^[1] level track metrics on a quarterly basis against measures including:

• carbon emission reduction,
• recycle-ready packaging,
• people empowered through our health inclusivity initiatives,
• gender and ethnic diversity in leadership roles^[2],
• employee health and safety,
• regulatory inspection compliance.

The Executive and Regional Leadership Teams review these quarterly. Responsible business performance metrics are built into employee personal objectives where it is relevant for their roles. Additionally, three responsible business metrics are included in Haleon’s Performance Share Plan: Scope 1 & 2 carbon emission reduction, recycle-ready packaging, and gender diversity in leadership roles.