2017 INTEGRATED REPORT

About this report

WHY WE PUBLISH THIS REPORT
This report gives an overview of
how Sanofi sustains our business
performance by creating long-
term value for all stakeholders.
It demonstrates our contribution
to the major challenges and key
issues that Sanofi must address
today, linking sustainability
performance to business results. Using this report
It contains information about
events relating to our activities This report presents our
that took place in 2017, as well approach in a concise and
as major events in early 2018. integrated manner. It is an entry
It has been developed for a wide point to several other company
range of stakeholders, including documents.
shareholders and investors, References to other contents
employees, local communities, in this report and additional
authorities, patients, suppliers, sources are specified in the
healthcare professionals, non- right-hand side of the pages
governmental organizations and throughout this report.
ESG rating agencies.
This report presents our actions IN THIS REPORT
towards the United Nations Wherever you see this
Sustainable Development Goals reference, access related
(UN SDGs) and why working information elsewhere in this
collectively and building strong report.
partnerships is crucial to tackling
some of the major health issues FACTSHEETS
of today and tomorrow. Wherever you see this
reference, visit our CSR
MAIN FEATURES OF THIS REPORT document center to find
This Integrated Report is more content on Sanofi’s
informed by the reference commitments, policies and
framework published by initiatives.
the International Integrated
Reporting Council (IIRC). It MORE
focuses on issues that reflect Wherever you see this
Sanofi’s most significant reference, visit Sanofi.com or
economic, environmental and our other publications to find
social impacts. These issues additional content.
have been identified and
evaluated through a rigorous GRI
materiality analysis process that This label refers to GRI
involves Sanofi’s stakeholders. standards. The GRI indicators
covered by the associated text
OUR STAKEHOLDERS’ of the report are specified as
PERSPECTIVE follows: GRI 102-14. The GRI
This reports provides a Content Index is presented in
comprehensive picture of Appendix 2.
how Sanofi engages with
stakeholders and takes their UN SDGs
insights into account while These icons refer to the
defining and delivering United Nations Sustainable
on our business, shared Development Goals.
value and responsibility For instance:
commitments. The stories
of patients and testimonies
from key stakeholders in this
report provide an illustration
of the relationships built with A table presenting our
our stakeholders and the ambitions and targets linked
outcome of this dialogue and with SDGs is presented in
engagement. Appendix 1.
Discover throughout the report
the pages dedicated to our GLOSSARY
stakeholders’ perspective. A glossary is included page 88.
 Eshaan,
India
08
Sebastian,
Paraguay RJ,

10
United States

12

16 Claudia,
United Kingdom

14
Lily & Sumeyra,
Australia
18 Healthcare
for all

This report is intended to present who Introduction

we are today and our purpose 02 – Sanofi at a glance
as a health journey partner. 04 – Editorials
It shows how Sanofi anticipates and 06 – Our Manifesto
addresses major trends affecting 08 – #SanofiStories
our society and ecosystem and
integrates them into our business Our strategy in an evolving environment
and responsibility strategy to 22 – Key trends transforming the pharmaceutical industry
better meet patient needs.
24 – Fostering stakeholder dialogue
This strategy and our operating 25 – Our strategy for long-term value creation
model enable us to create value,
as a sustainable economic partner,
Our value creation
through science and innovation
30 – Our value creation model
and as a corporate citizen.
32 – Creating value as a sustainable economic partner
This report presents how this value
40 – Creating value through science and innovation
creation is backed by the strong
49 – Creating value as a corporate citizen
fundamentals of our operating model:
our governance, our proactive risk
Our fundamentals
management and our high standards
of ethics and transparency. 71 – Our operating model
72 – A sound governance
77 – A proactive and structured risk management approach
80 – Ensuring ethics and transparency

Appendices
88 – Glossary, SDG table and GRI Content Index
SANOFI AT A GLANCE

Sanofi is a leading global

healthcare company, focused
on patient needs and committed
to researching, developing,
manufacturing and marketing
therapeutic solutions

More than Present in

100,000
employees
100countries
representing with 81 manufacturing sites
145 nationalities in 36 countries

COMPANY SALES COMPANY SALES

BY GEOGRAPHICAL AREAS BY GLOBAL BUSINESS UNITS

33.8% 29.3% 40.1% 15.4%

UNITED STATES EMERGING GENERAL DIABETES & CARDIOVASCULAR
MARKETS MEDICINES & DISEASES
EMERGING
MARKETS

16.2%
SPECIALTY
CARE
SANOFI
GENZYME

9.7% 13.8% 14.5%

REST OF 27.2% CONSUMER VACCINES
THE WORLD EUROPE HEALTHCARE SANOFI PASTEUR

All data as of December 2017 unless indicated otherwise.

02
 Five global business units
covering a wide range of health conditions
Diabetes Consumer Sanofi Pasteur
& Cardiovascular Healthcare Vaccines

Diseases

Sanofi Genzyme General Medicines

Rare diseases, multiple sclerosis, & Emerging Markets
oncology and immunology
Established prescription
products and generics

2017
key figures

82 € 35 BN
Company sales
Access to
Healthcare
programs
in 65 countries,
with over 35 million
Business earnings
per share
– 22.6%
water consumption

5.54
since 2010
patients receiving
diagnosis, €
vaccination
or treatment and
346,000 healthcare
professionals Business net income
– 23.0%
greenhouse
trained   gas emissions

€7BN since 2010

Innovation to sustain our
long-term growth

5.5 BN
€ invested in R&D
in 2017 representing
15.6% of Company sales
4
R&D hubs
across Europe, North America
and Asia
74
R&D projects
under development,
as of April 2018

GRI 102-2 GRI 102-4 GRI 102-6 GRI 102-7

SANOFI 2017 INTEGRATED REPORT 03

EDITORIALS

Olivier
Brandicourt
CHIEF EXECUTIVE OFFICER

“Our ambition is to
become one of the
world’s top three
innovative, global
and diversified
human healthcare
companies by 2025.”

O
ver the last three years, our
Company has profoundly
transformed itself. Sanofi’s
profile today is unique in
our industry. Our diver-
sified activities focused
on human health allow us to leverage our
capacity for innovation and performance
excellence to benefit all stakeholders, begin-
ning with patients. Our ambition is to become
one of the world’s top three innovative, treatments. We call this Empowering Life. Empowering Life is
global and diversified human healthcare also about ensuring that the value we create is shared and
companies by 2025. By embracing trans- sustained over the long term. We share this value by improv-
formative technologies and focusing on our ing access to healthcare and providing a positive contri-
areas of excellence, we will continue to earn bution in our communities, focusing on the highest needs
the respect and trust of patients and health- and where we can have the greatest impact. We sustain our
care professionals. Today we are facing value creation by acting responsibly, reducing our impact
societal challenges, such as a growing and on the environment and ensuring high standards of ethics
aging population, wealth disparity, climate and transparency in all that we do. In March 2018, Sanofi
change… Digitalization and technological committed to the Science-Based Targets initiative (SBTi) to
breakthrough are bringing tremendous align our carbon reduction performance with levels required
opportunities. In this context, there is a grow- to limit global warming to below 2°C. We have also renewed
ing expectation that companies deliver not our longstanding commitment to the United Nations Global
only financial performance, but also that Compact, which is an integral part of our CSR approach. I
they demonstrate their positive contribution would like to extend my warmest thanks to our shareholders
to society. Sanofi’s contribution starts by serv- for their support and confidence in Sanofi’s leadership and
ing the needs of patients throughout their to our 100,000 employees for their professionalism, engage-
individual health journey. This is true whether ment and daily commitment to improving human health.
it is a few people with a rare disease or the
millions of people living with chronic condi-
tions, from protecting people with our vac-
cines to easing pain and suffering with our GRI 102-14

04
 A
t Sanofi, responsibility means engag-
ing according to our values. Teamwork,
respect, courage and integrity are the
foundation through which we work to
bring our innovative medicines to patients
around the world. By acting according to
these values, we create shared value for society and for
Sanofi’s business. Corporate Social Responsibility is a way
of thinking and behaving that is woven into the fabric of
how Sanofi operates as a Company every single day.
It requires the full commitment of the entire Company,
from top executives to each individual in our operations
around the globe. By acting responsibly, we build trust
with our patients, partners and our other stakeholders. This

Kathleen
trust is the cornerstone of our success. It is also critical to
our ability to recruit, retain and engage our employees.
To deliver real value to society, we need to listen to our
external stakeholders – including policymakers, patient

Tregoning
E X E C U T I V E V I C E P R ES I D E N T,
organizations, payers, trade associations and multilateral
organizations – understand their needs and expectations,
bring their insights into our business strategy and ensure
the Company’s decision-making processes are attuned
to our operating environment. Creating and
E X T E R N A L A FFA I R S
sustaining engagement with our stakehold-
ers helps ensure our ability to bring value to
society over the long term. Integrated think-
ing is a driver of change within the Company,
building bridges between organizations,
breaking down silos and generating strong
internal motivation. This integrated report
brings together Sanofi’s business objectives
and performance with our corporate citi-
zenship to provide the complete picture of
how we create value for all stakeholders. It
describes the full value of the contribution
our organization brings to society – through
our products, our business and economic
contributions and our role as an employer
and corporate citizen. Many thanks to all
who contributed to the preparation of this
second integrated report, including those
who provided their feedback on Sanofi’s
first integrated report or helped illustrate our
initiatives through their testimony in this new
report.

“Teamwork, respect, courage

and integrity are the foundation through
which we work to bring our innovative
medicines to patients around the world.” GRI 102-16

SANOFI 2017 INTEGRATED REPORT 05

OUR MANIFESTO

Sanofi, a health
journey partner
We, at Sanofi, are there beside people in need,
as a health journey partner. Many patients are
depending on us. We aim to protect, enable and
support people facing health challenges, so they
can live life to its full potential. We are a diversified
Company focused on human health, operating
worldwide and transforming scientific innovation
into healthcare solutions. A top-ranking player
in the life science industry, we provide innovative
health solutions across a broad spectrum of health
conditions:
• Whether it is a mild case, such as a cold, allergies,
digestive troubles or severe cases of cancer or
multiple sclerosis
• Whether it is to support a few people facing rare
diseases, such as Lysosomal Storage Disorders;
tens of thousands living with multiple sclerosis or
atopic dermatitis; or millions of people with chronic
conditions, such as diabetes or cardiovascular
diseases
• Whether it is to protect populations through
vaccines (from poliomyelitis, pertussis or influenza)
or to support communities to fight malaria – the
deadliest parasitic disease – through prevention
and affordable treatments

Sanofi is about
Empowering Life.

06
 #SanofiStories

SANOFI 2017 INTEGRATED REPORT 07

#SANOFISTORIES

Living a normal life

thanks to diabetes
management
Eshaan, 19, India. Diabetes has become a major
threat to health on a global scale. The spread of
the disease and the medico-socio-economic burden
it places on societies will continue to represent
a major challenge in the decades ahead.

08
W
hen Eshaan was 12, already one of the leading causes Telecommunication Union,
he was diagnosed of mortality. However the global rise which focuses on using mobile
with diabetes following is driven by its growing prevalence technology to improve prevention
routine blood and in low- and middle-income and treatment in low-and middle-
urine tests for a swimming team. countries, where three quarters income countries. This Diabetes
The shock was great. “Having to of people with diabetes live. program features targeted SMS
do the daily injections was terrible. Diabetes places a major burden on messages to raise awareness on the
I had to bring my vials, insulin economies, with global healthcare disease, help in the diagnosis
and syringe to school and find expenditure on diabetes reaching and provide access to training for
somewhere quiet. I was also the $727 billion in 2017, representing health workers. Another example
first to have type 1 diabetes, so the 12% of the world’s total healthcare is the Kids and Diabetes in Schools
teachers weren’t educated about expenditure. Spending in emerging (KiDS) Project in Brazil, Egypt, India,
the problems I faced,” says Eshaan countries will outstrip those of Japan, Pakistan, Poland, and the
now 19 and engineering student developed nations in the coming United Arab Emirates, which aims
in Pune, India. decades, because of unhealthy to foster a safe, supportive school
India is facing a changes in eating habits and environment for children with
particularly acute diabetes a decrease in physical activity. diabetes and raise awareness of
problem, with more than To support diabetes diabetes and the benefits of healthy
72 million cases in 2017, care, Sanofi takes part in diets and physical activities among
numerous initiatives around school-age children.
according to the International
the world. Eshaan Shevate showed how well
Diabetes Federation. Sanofi is a
people can live with the disease
partner of the national network These include the International
when he participated in the Sanofi

#SanofiStories
of Apollo Sugar Clinics, which Diabetes Management Practices
and World Diabetes Tour’s Type 1
provide detection, treatment and Study (IDMPS), the largest
Challenge to Macchu Pichu in
advice on diabetes. An estimated observational study of adult
Peru. “It was magical, and when
387 million people around the diabetes care in the developing
we reached the finish line, we
world live with diabetes, a chronic world. The findings of the
almost forgot about the hardship
non-communicable condition study have shed light on many
to get there,” he says. “For me,
that if unmanaged can lead to aspects of diabetes practices,
it was a golden opportunity to
serious health conditions. These from care management to
realize my true potential. With
include cardiovascular disease, education, resource consumption,
the proper diabetes treatment
kidney disease, eye diseases and barriers to insulin.
and management, anything is
including blindness, nerve damage Sanofi is also contributing to the
possible.”
and lower-extremity amputation. “Be healthy, Be mobile” initiative
In developed countries, diabetes is led by WHO and International

SANOFI 2017 INTEGRATED REPORT 09

#SANOFISTORIES

Give them all

the same chance
for recovery
Sebastian, 18, Paraguay. Childhood cancer, though rare, has high
mortality rates in countries with limited resources. Providing early diagnosis
and access to care significantly improves the survival rate and is the goal
of My Child Matters program. In Paraguay the program allowed one young
cancer patient to pursue his medical studies.

10
 #SanofiStories
A
t 18 Sebastian was scarce across the country in 2005, My Child Matters
preparing to leave his – even in the capital. The costly has delivered 58 projects in
family home in Asunción, medicines required for long-term 42 countries that have helped train
Paraguay, to study chemotherapy treatments were 20,000 health professionals and
medicine at university. But his plans unaffordable in a country with an treat more than 75,000 children.
were halted abruptly when he was annual average income of $3,000, “Childhood cancer is a prime
diagnosed with cancer. His mother where 30% of the population had example of health inequality: for
broke down in tears. Sebastian no access to healthcare in 2016. ten years in France, near 100%
had to reassure her that he had Fortunately for Sebastian, his of retinoblastomas have been
no intention of letting his disease diagnosis came at the same time cured, while in some countries
stop him from pursuing his life-long as Paraguay started to implement of sub-Saharan Africa, the cure
dream of becoming a doctor. an approach called “My Child rate is lower than 10%,” says Anne
Sebastian is one of Matters” to tackle the problem Gagnepain-Lacheteau, Medical
the 300,000 children of childhood cancer mortality. Director of the Sanofi Espoir
and adolescents who are A global Sanofi Espoir Foundation Foundation.
diagnosed with cancer initiative, My Child Matters seeks Without My Child Matters,
every year. to improve the survival rate of Sebastian doubts he would
children with cancer in limited- have been treated successfully
About 80% of them live in countries
resource countries by providing for cancer. “Paraguay is a poor
with limited resources, where
access to quality medical care country. There are very few good
cure rates are around 40%, falling
for all children. doctors, and the medicine for
to around 10% to 20% in some
The program trains doctors chemotherapy is very expensive,”
countries in sub-Saharan Africa,
and other professionals he says.
compared to 80% in developed
countries. Childhood cancers are to recognize the early “In the program they provide
a rare disease. A cure is possible in signs of cancer for earlier, the medicine for free.”
most cases – provided treatment life-saving diagnoses. By the time he began his second
is readily available. However, early In Paraguay it set up four regional year of medical school in 2010,
diagnosis and access to care pediatric cancer clinics to treat Sebastian had decided to
significantly improve the survival patients like Sebastian. become a pediatric oncologist.
rate of children. Despite his My Child Matters makes it possible Today he has completed his
confidence, Sebastian faced long for local teams in the poorest medical studies and has begun
odds because of where he lived. countries to develop projects his seven years of specialization
In Paraguay, medical services adapted to their specific needs to make this dream a reality.
for cancer were extremely in oncology. Since its inception

SANOFI 2017 INTEGRATED REPORT 11

#SANOFISTORIES

When patients
become part
of the solution
RJ, 5, United States. Families of patients with rare
diseases often feel alone in their search for diagnosis
and treatment. A Sanofi program gives them a voice
by listening to their concerns and linking them up with
medical researchers. For the parents of a child with a rare
eye disease, this makes all the difference.

12
W
hen RJ was born after The family was relieved to have a then help match researchers with
a routine delivery, diagnosis but were left emotionally patients. The connection to RJ and
his parents were and financially battered. Like most his family was made through the
delighted. RJ was families with rare diseases, they Rare Disease Patient Advocacy
an adorable baby, hitting every had to search for answers on their group at Sanofi Genzyme, Sanofi’s
developmental step for the first own. They found help from the Specialty Care Global Business
three months. Then a routine Foundation Fighting Blindness, Unit. Thanks to this connection,
test revealed RJ was not tracking where they met other families in Sanofi is able to engage with
objects with his eyes and had similar positions. patients and their families from
nystagmus, or involuntary eye They also spoke to Sanofi’s the very beginning of a research
movement. Medical Intelligence & Patient project, to understand how the
Suddenly their healthy baby Perspectives team. The mission disease impacts their life.
boy was being booked in for an of this team is to engage with These perspectives help
MRI scan. The next two months patients to gather insights on their focus research projects
were emotionally and physically diseases and the hurdles they on how to most effectively
grueling for RJ and his parents as face, the treatment conditions help them.
they sought a diagnosis, which they would be willing to accept
RJ is now a happy, otherwise
involved many doctor visits and and the expectation they have
healthy five-year-old. He can see
invasive tests. Watching their child regarding this treatment.
some shapes and colors and
have his eyes dilated and held These insights are enjoys watching shows up close
open with metal clamps for an aggregated and shared on an iPad. He is still too young to
exam was excruciating. with Sanofi’s research have a full understanding of the

#SanofiStories
When RJ was five months and development severity of the disease, and his
old he was diagnosed with teams to inform on the parents dread the day when they
LCA1 (Leber Congenital development of treatments. will have to explain his condition to
Amaurosis), To make it easier for researchers, him. RJ’s family now devotes a lot of
a rare, inherited eye disease Sanofi has set up a dedicated time to LCA1. One day, they hope,
that appears in the first few portal where they can ask for advances in research will allow their
months of life and affects 1 in insights into a specific disease. son to be able to read and to play
40,000 newborns. Sanofi’s Patient Advocacy teams catch like little boys everywhere.

SANOFI 2017 INTEGRATED REPORT 13

#SANOFISTORIES

College students
take a stand
against meningitis
Lily, 23, and Sumeyra, 20, Australia. When it comes
to raising awareness of severe meningococcal diseases
among young people, nothing beats patients’ own
testimonials. In Sydney, Australia, Sanofi helped set up
a program that relies on students, rather than medical
authorities, talking directly to their peers about prevention.

I
n 24 hours, 23-year-old Lily’s life
changed forever. “On Christmas
Eve, I got sick with what I thought
was flu or a virus,” she recalls.
The next day she woke up with
a fever and, by Christmas night,
she was throwing up and couldn’t
keep water down. At midnight a
rash had formed and her mother
called the doctor, who sent her
straight to the hospital. A few
hours later Lily was put on dialysis,
diagnosed with meningococcal
meningitis, a potentially deadly
disease that strikes fast and hard.
Sumeyra, 20 years old, also finds
it difficult to recall how quickly
she fell ill. “I had aching bones,
vomiting, stiffness and abdominal
pain,” she explains. When her
father saw a rash developing, he
took her to the hospital. They put
her on antibiotics immediately.
With multiple organ failure,
Sumeyra was then put into an
induced coma.
Less than 24 hours had
elapsed since the first
symptoms had appeared.
Nothing will ever be the same
for these two young women. Lily
is still waiting for a kidney transplant
and Sumeyra has chronic kidney
disease. But they are alive. And
today, after months of recovery,

14
 #SanofiStories
they are trying to rebuild their In a program set up by Sanofi Pasteur
lives. Above all, they want to raise and the University of Technology
awareness so that young people Sydney, students were asked to
do not have to endure the same create proposals to raise awareness
suffering from meningitis, a rare of meningococcal disease among
but devastating infection that their peers, with the winning group
affects 1 million people worldwide proposing an interactive art festival.
every year. The disease causes Supported by Sanofi Pasteur
an inflammation of the fluid and teams, the students’ enthusiasm
membranes covering the brain and involvement grew throughout
and spinal cord and can kill within the project:
hours without an immediate “It was interesting to see
diagnosis and appropriate how these young people took
treatment. With a mortality rate of something that over time they
10% to 15%, despite appropriate became passionate about,”
care, as many as 10% to 20% of
says Anna Trygg, Product Manager
survivors have severe permanent
at Sanofi Pasteur. “They went
health problems, including
from the idea stage all the way
paralysis, hearing loss, and even
to implementation.”
amputations.
What this awareness campaign
Lily and Sumeyra are among made so successful was that the
383 cases of invasive information came from students
meningococcal disease rather than health authorities
reported in Australia in 2017. and that when survivors speak,
Adolescents are significant vectors awareness about prevention
of the disease and play a central is raised. “When they said in the
role in transmission, with a peak emergency room that it could be
at age 19. Survivors carry an meningococcal, I said, no, I’ve
important message: prevention had my vaccinations. But obviously
is the most effective way to I hadn’t had them all,” says Lily.
avoid rare but unpredictable, “So it’s worth going to your general
fast evolving and very severe practitioner to see what you’ve
meningococcal diseases. missed out on.”

SANOFI 2017 INTEGRATED REPORT 15

#SANOFISTORIES

Taking control
of your allergies
Claudia, 29, UK. The sneezing, stuffy nose and other
symptoms of allergic rhinitis make it impossible
for sufferers to enjoy outdoor sports and the other
pleasures of spring. But while there is no cure, there are
ways to limit the effects of allergies on daily life.

A
llergies can be frustrating,
debilitating and even life
threatening. From food
allergies to skin allergies,
the impact on the well-being of
those who suffer can be immense.
Claudia, 29, from the United
Kingdom, was well acquainted
with the symptoms of seasonal
allergic rhinitis,
a common allergy
that affects 10% to 30%
of the global population.
She used to dread spring each
year. The sound of a lawnmower
or the scent of flowers made her
run indoors to seek refuge from
the dreaded pollen.
“Even though I love the warmer
weather and being outdoors,
I would fear spring every year.
My allergic rhinitis symptoms
were horrible – they made me
miss friends’ birthdays in the
park, stopped me from playing
outdoor sports, and just made me
feel really unwell and miserable,”
she recalls.
She was on her dream European
holiday when she had had
enough. Holed up in her hotel
room while her friends explored
Copenhagen, her eyes red raw,
her nose stuffy and chapped,
she felt ill with the flu. Worse, she
felt she was missing out on life.
“After my trip was ruined
by my allergies, I decided
that I didn’t want my life
restricted anymore.

16
I went home and saw my general pharmaceutical costs, as well
practitioner to discuss different as causing billions of days of lost
treatment options and finally productivity through sick days
found something that worked for or people going to work but being
me. Afterwards I celebrated by unable to perform”. In addition to
rolling around in the grass! It felt so the physical symptoms of seasonal
good to be able to enjoy spring.” allergic rhinitis, such as blocked or
Allergies can also be exacerbated runny nose, itchy eyes, sneezing
by living in highly polluted cities and headache, the psychological
and sufferers in these cities symptoms can be just as bad.
can experience increased People who suffer from allergic
symptoms in accordance with rhinitis can feel tired, irritable,
the pollution levels. According and embarrassed.
to Professor Ignacio Ansotegui, While there is no cure
President of the World Allergy for allergic rhinitis, there
Organization, allergic rhinitis is are ways to take control
a chronic disease and can be of your symptoms.
terribly debilitating.
Professor Ansotegui advises
“Respiratory allergies impair
the following strategies:
everyday activities such as
• Understand what triggers your
sleep, mood, physical and
allergies and avoid situations
social activities, work and school
where you will be exposed.
performance, leisure, sports and

#SanofiStories
• If you are unable to avoid
personal relationships,” he says.
situations where your allergies are
“Allergies result in an
set off, have oral antihistamine on
increased use of health
hand to control your symptoms.
services, hospitalization and

SANOFI 2017 INTEGRATED REPORT 17

#SANOFISTORIES

Everyone, everywhere
has a right
to healthcare
Worldwide. Health coverage is a fundamental Human Right, yet 400 million
people still have no access to basic healthcare and 40% of the global
population lack any form of social protection. In real time these alarming
statistics translate into daily human tragedies: a young mother who dies during
childbirth in a fragile state because she lacks access to a hospital; a child
dropping out of school because health expenses have pushed his family into
poverty; an adult living in the inner city of a middle-income country suffering
from chronic non-communicable diseases and not receiving treatment.

18
D
o we want our fellow non-communicable diseases by polio and sleeping sickness,

#SanofiStories
citizens to die because one third by 2030, and it is also which lie at the core of health
they are poor? Or to the aim of the Access Accelerated vulnerabilities in low- and middle-
see millions of families (AA) initiative that was launched income countries. Sanofi has
impoverished by catastrophic by Sanofi together with 22 other partnered with WHO since 2001
health expenditures because they pharmaceutical companies. to address several neglected
lack financial risk protection?” asks Sanofi’s commitment to AA tropical diseases, including
Dr. Tedros Adhanom Ghebreyesus, includes programs such as FAST sleeping sickness,
Director-General of the World – Fight Against STigma – which providing treatments
Health Organization (WHO) in demands better mental health at no cost and supporting
reaction to this year’s World Health care in developing countries the development of local
Day that calls for “Universal health and supports people like Josiane people.
coverage: everyone, everywhere”. in Madagascar who suffer from
We also collaborate with the
schizophrenia, which makes her
Drugs for Neglected Diseases
often angry and irritable. Another
A global response initiative (DNDi) to develop a new
program, KiDS, supports children
The answer is a resounding “No.” oral treatment with the aim of
with type 1 diabetes and is
The global response to improving eliminating the disease by 2020.
people’s access to healthcare is “essential for promoting Since 2001, more than 40 million
focused on three main areas: non- healthy living at an early people have been screened
communicable disease, infectious age, potentially helping and over 210,000 patients have
disease and preventative in the prevention of type 2 received life saving treatments.
measures such as immunization. diabetes,” Life saving strategies also come
Non-communicable diseases says Antonio Tataranni, Head of in the form of prevention. An
such as cancers, cardiovascular Medical Affairs, Diabetes and estimated 1.5 million deaths could
diseases, chronic respiratory Cardiovascular Business Unit. be avoided with improved global
diseases, diabetes and mental One of its flagship programs is vaccination coverage. Through
health disorders are estimated the Sanofi Espoir Foundation’s partnerships with international
to be responsible for 36 million My Child Matters, that focuses organizations such as WHO, GAVI,
deaths annually – that’s Canada’s on increasing the level of the Vaccine Alliance and UNICEF,
entire population. Three quarters care for children affected by Sanofi Pasteur has provided more
of these deaths occur in low- and cancer in low- and middle- than 6 billion doses of the oral
middle-income countries where income countries. International polio vaccine over the last decade
people have limited access collaboration also focuses on and 1 billion doses of injectable
to healthcare. One of the UN the eradication, elimination and vaccine as part of the Global Polio
Sustainable Development Goals is control of infectious diseases, Eradication Initiative. 
to reduce premature deaths from such as tuberculosis, malaria,

SANOFI 2017 INTEGRATED REPORT 19

20
 1
OUR STRATEGY
IN AN EVOLVING
ENVIRONMENT
Global trends are reshaping the healthcare ecosystem.
For Sanofi, understanding and anticipating these trends
and the evolution of society is central to our ability to fulfill
our mission as a health journey partner. These trends are
reflected in the significant expectations and interests of our
stakeholders. Through continuous stakeholder dialogue, we
are able to better address global challenges and turn them
into opportunities to develop innovative solutions. Our
stakeholders’ insights are therefore a key input for our value
creation strategy.

SANOFI 2017 INTEGRATED REPORT 21

OUR STRATEGY

Key trends transforming

the pharmaceutical industry
Far-reaching trends are reshaping society, representing both challenges and
opportunities. Technology, social transformations, economic and demographic
changes are driving a reorganization of the healthcare industry. We have identified
the following general, health-related and societal trends impacting our environment
and our ecosystem.

Empowered patients: consumers are

Our key trends demanding better care, empowered
by access to new information; this
GENERAL TRENDS includes a growing middle class in
emerging markets.
Growing and aging population: Growing pressure on healthcare
longer lifespans and changing companies: the rising burden of
lifestyles are resulting in growing healthcare costs and overall healthcare
challenges related to chronic diseases. spending is on an unsustainable trajectory,
Wealth disparity: despite a decreasing resulting in reforms in many markets.
global poverty rate, disparities in Pricing is under pressure: politicians,
wealth have increased in nearly all patients and payers are demanding
world regions in recent decades. more value from innovation, affordable
Climate change: foremost among medicines and new access models.
global environmental issues are Rise of non-traditional players in
climate change and pollution, and the healthcare field: competition is
their impact on health. ever stronger, with new competitors
Digitization, artificial intelligence entering from other sectors and growth
and technological breakthroughs: in collaborative relationships.
new technologies and scientific
innovations are opening new
possibilities in integrated healthcare. SOCIETAL TRENDS
The field of genomics is beginning to
fulfill its promise, immuno-oncology is Increased transparency expectations:
transforming cancer treatments, big stakeholders are requiring more
data is generating new insights into transparency leading to new regulatory
diseases and digital is transforming requirements.
care delivery. Digital technology is also Stakeholders’ expectations for dialogue
enabling new ways to engage with and co-construction: companies are
patients and connected healthcare increasingly expected to communicate
solutions for the prevention, diagnosis about their financial and extra-financial
and monitoring of diseases. priorities, actions and results and to build
partnerships and working relationships with
local communities and other stakeholders.
HEALTH-RELATED TRENDS Environmental and social issues:
companies are expected to respond
Unmet medical needs remaining through policies and actions to a broad
high: developing new treatments array of issues including respecting
and improving access to healthcare is human rights, promoting workforce
crucial to end epidemics of infectious diversity, developing employees, ensuring
diseases that continue to cause sustainable practices throughout their
death and adversely affect the lives of supply chain, reducing product footprint,
people around the world, and to tackle managing sustainably water resources,
the growing needs related to non- waste and other environmental issues.
communicable diseases.

22
An evolving healthcare ecosystem
The pharmaceutical industry is at We are moving from a world in which
a crossroads, facing an urgent need medicine was used to treat symptoms
to transform its business model. The to a world in which healthcare
medical world and the healthcare professionals can anticipate and take
ecosystem are evolving towards action before diseases affect patients,
a new approach to more personalized and in which patients are taking an
medicine focused on the patient increasingly active role in decisions
at all stages of care, from prevention about their health, forging new
to post-treatment. collaborative relationships.

Key trends impacting our environment and our ecosystem

INCREASED
CLIMATE TRANSPARENCY WEALTH DISPARITY
CHANGE EXPECTATIONS

GROWING AND AGING
DIGITIZATION, ARTIFICIAL POPULATION
INTELLIGENCE
ENVIRONMENTAL
AND TECHNOLOGICAL
AND SOCIAL ISSUES
BREAKTHROUGHS

GROWING PRESSURE
ON HEALTHCARE
EMPOWERED COMPANIES
PATIENTS

STAKEHOLDERS’ EXPECTATIONS
RISE OF NON-TRADITIONAL FOR DIALOGUE AND
PLAYERS IN THE CO-CONSTRUCTION
HEALTHCARE FIELD
UNMET MEDICAL NEEDS
REMAINING HIGH

CHALLENGES AND OPPORTUNITIES…

I R ON M ENT AN
R E NV DO
OU UR
G E
N
C
TI

O
C

SY
PA

STE
M
... I

PATIENTS
PATIENTS

GENERAL TRENDS
HEALTH-RELATED TRENDS
SOCIETAL TRENDS

SANOFI 2017 INTEGRATED REPORT 23

OUR STRATEGY

Fostering stakeholder
dialogue
Listening to our stakeholders is essential to understand new societal expectations
that are driving our ecosystem’s evolution. Ongoing dialogue with stakeholders,
such as patients, healthcare professionals, policymakers and many others,
helps us develop a deeper understanding of their concerns and expectations.
It helps guide our actions towards creating long-term value for all.

Our stakeholders
Being a global human healthcare company brings us into contact with a wide
variety of stakeholders:

EMPLOYEES HEALTHCARE PROFESSIONALS AUTHORITIES AND PAYERS

Sanofi employees Physicians Health authorities

Trade unions network Pharmacists Governments and regulators
Midwives Public and private insurance
Nurses companies
BUSINESS PARTNERS Researchers and public health Health technology
experts assessments (HTA) bodies
Pharmaceutical industry
associations (IFPMA, EFPIA, PATIENTS INTERNATIONAL AND LOCAL
PhRMA, LEEM) ORGANIZATIONS
Other pharmaceutical
Patients
companies United Nations Organizations
Patient associations
Public and private healthcare (Global Compact, WHO,
Patient communities
centers UNICEF)
Suppliers including Contract NGOs (DNDi, Bill & Melinda
Research Organizations LOCAL COMMUNITIES Gates Foundation, etc.)
(CROs)
Neighbors
Economic players INVESTORS
MEDIA including small and medium
enterprises Shareholders
Journalists Schools/Universities Institutional investors
CSR experts Citizens Socially responsible investors
Social media Consumers Rating agencies

Stakeholder dialogue and engagement

Sanofi dialogues and engages with its Resources, Marketing, etc.
stakeholders through several channels. Through our Stakeholder Committee,
Through our day-to-day activities. led by the CSR department, which
Representatives from all areas of our brings a large range of stakeholders
business interact on an ongoing basis around the table through a formalized
with a wide variety of stakeholders. dialogue, extended to international
This dialogue happens at all stages participants in 2016. The panel provides
of our value chain, from R&D and a forum to discuss Sanofi’s CSR
manufacturing to pharmacovigilance challenges and engage stakeholders
and quality management. Sanofi in co-producing tangible outcomes. In
interacts with stakeholders through 2017, the Committee working groups
our many departments, including focused on four priorities: Access
the Medical function, Quality, to healthcare; Ethics & Investment
Procurement, Finance, R&D, Investor choices in R&D; Pricing and Innovation;
Relations, External Affairs, Human Sanofi’s territorial footprint. GRI 102-43

24
 IN THIS REPORT

Our strategy for long- “Our stakeholders’

perspective”:
> Integrating the

term value creation patients’ perspective

in R&D p. 45
> Global Health, our
social mission p. 55
In this evolving environment, Sanofi seeks to go beyond delivering > Engaging with
communities around
economic performance to also ensure we are making a positive Sanofi sites p. 61
contribution to society. Our vision for long-term value creation is > Sanofi Bioethics
Committee p. 85
expressed through our strategic business priorities and our CSR
FACTSHEET
commitments.
> Stakeholder
Engagement

MORE

Creating long-term value > Video Sanofi 2017

International
Stakeholder
Committee
We are a global biopharmaceutical become one of the world’s top three
company focused on human health, innovative and diversified human
transforming scientific innovation into healthcare companies by 2025. As a
healthcare solutions. Our purpose responsible company, our vision
is Empowering Life as a health includes making a positive impact
journey partner. We bring value to on society, creating sustainable and
society by protecting, enabling and shared value. We want to achieve
supporting people facing health this vision by focusing on the highest
challenges through our vaccines and needs and where we can have the
drug treatments. Our ambition is to greatest impact.

Our strategy for long-term value creation

OUR COMMITMENTS TO INSPIRE, FOSTER

OUR 2020 STRATEGIC ROADMAP
AND PROMOTE RESPONSIBLE PRACTICES

DEVELOP ACCESS TO ENGAGE WITH HEALTHY ETHICS &

RESHAPE INNOVATE LAUNCH SIMPLIFY
PEOPLE HEALTHCARE COMMUNITIES PLANET TRANSPARENCY

Our value creation Our value creation Our value creation Our operating model,
as a sustainable through science and as a corporate citizen governance, risk
economic partner innovation management and key
ethical principles

SANOFI 2017 INTEGRATED REPORT 25

OUR STRATEGY

OUR 2020 STRATEGIC Simplify the organization

ROADMAP Establish a more agile organization
through a cost reduction program.
Reshape the portfolio Engage and develop people
– Sustain our leadership in diabetes Unite the different parts of the
and cardiovascular diseases, Company behind a single vision,
vaccines, rare diseases and a common set of values – teamwork,
emerging markets. integrity, courage, respect – and
– Build competitive positions a shared culture.
in multiple sclerosis, oncology,
immunology and consumer
healthcare. OUR CSR COMMITMENTS
– Explore strategic options for animal
health and generics in europe: CSR is our responsibility vis-à-vis
Sanofi exited the animal health society. Our approach focuses on
business in 2017 and announced three pillars and is based on our key
the implementation of a divestiture principles to ensure high standards
process for the generics business of ethics and transparency in all
in Europe (following the completion that we do:
of the dialogue with social partners). extending access to healthcare
Deliver outstanding launches for the underserved;
Succeed in the launches of new supporting our communities,
medicines and vaccines. including the community of our
Sustain innovation in Research employees;
and Development preserving a healthy planet,
– Continue to strengthen our R&D ensuring that environmental
pipeline at all development stages. considerations are part of our
– Develop new proprietary technology decision-making process.
platforms, multi-targeting molecules
and biologics.

Our CSR commitments

ACCESS TO
HEALTHCARE
FOR THE 
UNDERSERVED

ETHICS AND ENGAGE

TRANSPARENCY WITH
COMMUNITIES

HEALTHY PLANET

26
Defining CSR priorities our existing material issues and on IN THIS REPORT
through our materiality feedbacks from internal and external > A proactive and
structured risk
analysis stakeholders. Then we prioritized management
Conducting a materiality assessment these topics taking into account: approach p. 77
helps us prioritize the key issues that their impacts for Sanofi’s activities
FACTSHEETS
we need to address to deliver our as measured by the Sanofi risk > Sanofi’s CSR
CSR ambition. This process involves management approach; Materiality, Strategy
identifying and prioritizing topics their relative weights according to and Governance
> External CSR Awards
according to the expectations of our internal and external stakeholders; received
Sanofi’s stakeholders and considering the existence of reporting
their impact on Sanofi’s activities. obligations such as the French laws
We base our materiality assessments Loi Sapin II, Article 173 and Duty of
on a robust methodology aligned Vigilance.
with sustainability standards. These This second step allowed us to
assessments started in 2010. filter and prioritize the topics based
In 2017, we conducted a two-step on their relevance and relative
process to “refresh” our materiality importance. Our final list of CSR
analysis. We first established a list of material topics, ranked by relative
approximately 30 topics based on importance is as follows:

Our material topics

Access to healthcare for the underserved

Product quality and patient safety
Business ethics
Bioethics
Corporate governance
Responsible pricing
Supply chain/responsible procurement
Human capital
Human rights, labor practices and Health & Safety
Pharmaceuticals in the environment (PIE)
and antimicrobial resistance (AMR)
Climate change: carbon emissions
Water management
Community engagement
Climate change: impact on health

Boundaries:
Material topics may generate impacts as a result of an organization’s own activities or as a result
of the organization’s business relationships with other entities.
Sanofi’s activities
Supply chain

IDENTIFYING AND ADDRESSING term. As such, they are drivers of

THE FULL RANGE OF VALUE value creation. They reflect our key
CREATION DRIVERS stakeholders’ current expectations
and are aligned with the broad-based
Each of the material topics defined societal expectations, linked to the
above, along with our economic key trends shaping the environment
sustainability and our contribution of our Company – whether general, GRI 102-46
to science and innovation, can healthcare-related or societal – GRI 102-47
affect Sanofi’s ability to create value presented in this report. GRI 103-1
in the short, medium and long GRI 103-2

SANOFI 2017 INTEGRATED REPORT 27

OUR STRATEGY

Our value creation drivers

To help navigate within the Integrated Report, the table below presents the list
of Sanofi’s value creation drivers, the related key trends and the reference to
the section of the report in which they are presented.

TOPICS IN THIS REPORT RELATED KEY ISSUES LINK WITH KEY TRENDS (P. 22-23) IN THIS REPORT

OUR VALUE Our resources, our operating

Increased transparency expectations p. 30
CREATION MODEL model and our value creation KPIs
Financial and business
Growing pressure on healthcare
ECONOMIC performance
companies p. 32
SUSTAINABILITY Extra-financial performance
Increased transparency expectations
Value distribution
R&D Unmet medical needs remaining high
Digital innovation including real- Growing and aging population;
world evidence empowered patients
SCIENCE AND
Collaborations for science and Digitization, artificial intelligence and p. 40
INNOVATION
innovation technological breakthroughs
Rise of non-traditional players in
the healthcare field
Growing pressure on healthcare
ACCESS TO Innovation, availability,
companies
HEALTHCARE FOR affordability, capacity building p. 49
Unmet medical needs remaining high
THE UNDERSERVED and awareness
Wealth disparity
Responsible pricing of our Wealth disparity
RESPONSIBLE PRICING p. 56
products Growing pressure on healthcare companies
Diversity
HUMAN CAPITAL Talent attraction, development Environmental and social issues p. 58 
and retention
Environmental and social issues
COMMUNITY Corporate citizenship
Stakeholders’ expectations for dialogue p. 61
ENGAGEMENT Donations
and co-construction
CLIMATE CHANGE:
Climate change and health p. 66
IMPACT ON HEALTH
Climate change
CLIMATE CHANGE: Air emissions
p. 67
CARBON EMISSIONS Climate change; eco-efficiency
Water management
WATER MANAGEMENT Environmental and social issues p. 68
Protection of water resources
PHARMACEUTICALS
Pharmaceuticals in the Growing pressure on healthcare
IN THE ENVIRONMENT
environment (PIE) companies p. 69
AND ANTIMICROBIAL
Antimicrobial resistance (AMR) Environmental and social issues
RESISTANCE
Corporate governance
CORPORATE
Executive compensation p. 72
GOVERNANCE
Diversity of governance bodies
Increased transparency expectations
BUSINESS ETHICS Ethical and compliant behaviors Growing pressure on healthcare p. 81
companies
Product safety and quality
PRODUCT QUALITY
Pharmacovigilance p. 82
AND PATIENT SAFETY
Fighting falsified medical products
Clinical trials; ethics in R&D Growing pressure on healthcare companies
Investment choices in R&D Digitization and technological
BIOETHICS p. 83
Animal welfare breakthroughs
Personal data privacy Increased transparency expectations
SUPPLY CHAIN
Social and environmental
AND RESPONSIBLE
standards in the supply chain
PROCUREMENT Increased transparency expectations
p. 86
HUMAN RIGHTS, LABOR Environmental and social issues
Respect for human rights
PRACTICES AND
and labor practices
HEALTH AND SAFETY

GRI 102-46
GRI 103-1
GRI 103-2

28
 2
OUR VALUE
CREATION
Our value creation model defines how we create value from
our resources, as a sustainable economic partner, through
science and innovation and as a corporate citizen.

SANOFI 2017 INTEGRATED REPORT 29

OUR VALUE CREATION

Our value creation model

Our resources

RESEARCH & DEVELOPMENT

Strong expertise in 6 therapeutic areas (rare

diseases, vaccines and infectious diseases,
immunology and inflammation, oncology,
neuroscience, diabetes and cardiovascular)
Robust R&D pipeline with 74 projects(1) in
development including 37 new molecular
entities and vaccines and 37 additional
indications
15,000 employees in R&D
Continued investments in R&D, representing
15.6% of net sales in 2017
Strong network of innovation excellence
through collaborations with partners around
the world

MANUFACTURING AND DISTRIBUTION

N
TI O
Manufacturing active ingredients, drug
products and medical devices, mostly at our

EA
own plants

CR
81 sites in 36 countries
40,000 people involved in the industrial network

F O R VALU E
FINANCIAL AND ECONOMIC
PATIENTS

GY
Strong long-term credit ratings
High and strong cash flows
International and diversified shareholder base ATE
S TR

O O )
UR

HUMAN CAPITAL UR UR 71 L E
S

OP (P.
O

GO E RA P
VE T I N G MOD E L CI
R NA R IN
Skilled and diverse workforce of more NC E A ND K E Y P
than 100,000 employees representing
145 nationalities
Located in 100 countries, including 43%
in Europe, 37% in emerging markets and 14%
in the US

SOCIAL AND STAKEHOLDER RELATIONSHIPS

Enfants de Sanofi, supporting employees’

children worldwide since 1993
Sanofi Espoir Foundation, supporting
communities since 2010
Long-standing culture of dialogue with
our stakeholders

ENVIRONMENTAL

Natural resources representing sources

of innovative new medicines
Energy (33,153 MWh in 2017) and water
(40,679,245 m3 in 2017) as resources for
our production activities

30
Our value creation

AS A SUSTAINABLE ECONOMIC PARTNER

Company sales 2017: €35,055 million

Business net income 2017: €6,964 million P. 32
24th consecutive year of dividend growth: €3.03 per share in 2017
Sharing value with our employees, holding 1.5% of capital
Individual shareholders, including employees, hold 7.4% of Sanofi shares(2)

THROUGH SCIENCE AND INNOVATION

Medicines and healthcare solutions available in more than 170 countries

7 new molecular entities and vaccine approvals over the 2015-2017 period(3)
11 submissions expected over the 2018-2021 period P. 40
Developing integrated healthcare solutions beyond medicines
Vaccines: over 500 million people immunized in 2017
Rare diseases: around 14,000 people worldwide receive our treatments for rare diseases
(lysosomal storage disorders)

AS A CORPORATE CITIZEN

IMPROVING ACCESS TO HEALTHCARE

82 Access to healthcare programs for the underserved in 65 countries

35 million patients receiving diagnosis, vaccination or treatment through our Access P. 49
to healthcare programs
Over 346,000 healthcare professionals trained
Responsible pricing: annual price increases in the US not exceeding medical inflation rate

EMPOWERING OUR PEOPLE

Developing leaders: 33% of Sanofi executives and 49% of Sanofi senior leaders attended
one Senior Leadership program in 2017 P. 58
Committed to a balanced representation of men and women throughout the organization:
in 2017, 46.2% of our employees and 38.5% of our senior leaders are women

DEVELOPING OUR COMMUNITIES

Supporting our communities, including the community of our employees

Making the ecosystem around our sites more inclusive and sustainable with employee P. 61
volunteering projects: more than 5,000 Sanofi employees volunteered 27,000 hours in 2017,
making a difference for over 36,000 beneficiaries in our communities
Initiatives towards SMEs: program “Plan PME France” rated “A” for the second year in a row

FOSTERING A HEALTHY PLANET

Carbon footprint: –23% emission from manufacturing and R&D sites since 2010 P. 64
Water: –22.6% water consumption since 2010

(1) As of April 2018.

(2) As of December 31, 2017.
(3) Adlyxin®, Dengvaxia ®, Dupixent ®, Kevzara ®, Praluent ®, Soliqua™ 100/33/Suliqua™, Toujeo ®.

SANOFI 2017 INTEGRATED REPORT 31

OUR VALUE CREATION

Creating value as a
sustainable economic partner
In 2017, we made significant progress in create sustainable shared value for our
implementing and executing Sanofi’s shareholders and society while delivering
strategic transformation priorities. Our strong extra-financial performance
diversified business model enables us to recognized by leading agencies.

Our solid financial and extra-financial

performance
EXECUTING OUR STRATEGY TO CREATE VALUE FOR SHAREHOLDERS

2017 financial objectives met

OBJECTIVES FY 2017 RESULTS

GROSS MARGIN 70-71% AT CER 70.6%

OPEX GROWTH RATE AT CER AT SIMILAR RATE AS IN 2016 +2.0%

TAX RATE 24-25% 23.5%

BUSINESS EPS GUIDANCE AT CER BROADLY STABLE –0.4% (€5.54)

DIVIDEND GROWTH PROGRESSIVE +2.4%

During 2017, we delivered on our to our shareholders. Sanofi 2017

financial objectives. 2017 was the dividend was €3.03 per share,
24th consecutive year of progressive a €0.07 per share increase over 2016,
dividend growth, confirming our corresponding to a dividend yield of
commitment to return capital 4.2% (as of December 31, 2017).

2017 sales stable at constant exchange rates and structure

Net sales – Evolution 2016-2017

€464 M -€299 M
-€672 M
€1,741 M €35,562 M
OTHER
SIX KEY
LAUNCHES(4) €35,055 M
FX

+0.5%
AT CER/CS(1)
€33,821 M
(1) Growth at Constant Exchange Rates (CER) and
BI CHC/ Constant Structure (CS).
SPMSD(2) (2) Primarily includes SPMSD (€261 million) and BI CHC
(€1,544 M on a full sales recognition basis) in 2016.
Minor disposal of CHC activities in China is also
included.
(3) 2016 sales at CS.
FY 2016 FY 2016 FY 2017 (4) Sales including Dengvaxia ®, Dupixent ®, Kevzara ®,
CS (3) Praluent ®, Soliqua ® 100/33 and Toujeo ®, all at CER.

32
This graph presents the key factors 5.6%, reflecting the acquisition of MORE
in the evolution of 2016 to 2017 sales. Boehringer Ingelheim’s Consumer > 2018 Shareholder
handbook
Net sales for 2017 were €35,055 Healthcare business and the first-time > Sanofi.com/Investors/
million, 3.6% higher than in 2016. consolidation of Sanofi’s European Reports and
Exchange rate fluctuations (Fx) had vaccines business. At constant publications/
Shareholder
a negative effect of two percentage exchange rates and on a constant publications
points overall. At constant exchange structure basis (CER/CS), net sales > Sanofi.com/Investors/
Company overview/
rates (CER), net sales were up rose by 0.5%.
Sanofi fixed income
> Form 20-F 2017/
Financial Statements

Continued investment in R&D and strict cost management

R&D SG&A Up 5% in 2017, our R&D investments

expenses expenses represented 15.6% of net sales (versus
15.3% in 2016). Sanofi’s R&D model
+0.4% should enable our business to build a
€9,486 M €10,058 M
robust pipeline of new products that
are expected to respond to patients’
+5.0%
28.0%
28.7% unsatisfied needs. Our capacity for
of sales
of sales innovation is also the best way to
€5,172 M €5,472 M
support our long-term growth.
Sanofi’s focused organization
15.3% 15.6%
of sales of sales delivered cost savings of €1.5 billion
since 2015, one year ahead of plan.
Selling, general and administrative
2016 2017 2016 2017
expenses (SG&A) totaled €10,058
All growth rates at CER/CS, adjusted for BI CHC million, compared with €9,486 million
business, termination of SPMSD and other. in 2016. This increase mainly reflected
the launch costs of Dupixent ®,
Kevzara® and Xyzal®, plus investment
in marketing and sales efforts in
key emerging markets and in the
European vaccines business.

Sustained capital investments supporting LT value creation

Evolution of capital investment and 2017 breakdown

PHARMA COMMERCIAL
PHARMA OPERATIONS
INDUSTRIAL 7%
AFFAIRS
PHARMA R&D
€1.5 BN €1.5 BN 47%
€1.4 BN 9%

SUPPORT
FUNCTIONS
11%

SANOFI PASTEUR
2015 2016 2017 26%

We are especially investing in three years. For example in Geel

biologics. Our capacity in bio- (Belgium), €300 million have been
production represented an investment invested to expand our biologics
of around €1.5 billion over the last manufacturing capacities.

SANOFI 2017 INTEGRATED REPORT 33

OUR VALUE CREATION

Strategically and financially Carve-out process initiated with a IN THIS REPORT

compelling merger view to divest our European Generics > Creation of a new
global Rare Blood
& acquisition activity to business following completion Disorders franchise
enhance Sanofi’s growth of dialogue with employee p. 44
profile and create value representatives.
Bioverativ: acquired for $11.6
billion; expands Sanofi’s presence Strong cash flow allows
in specialty care and strengthens financing of acquisitions
leadership in rare diseases. at excellent conditions
Ablynx: acquired for €3.9 billion; Strong long-term credit ratings:
expands new Rare Blood Disorders Moody’s A1; S&P AA; Scope Ratings AA.
franchise and strengthens our R&D Sanofi successfully issued an €8 billion
through its innovative Nanobody ® bond in March 2018 with proceeds
technology platform. used to refinance the acquisitions
Protein Sciences complements of Bioverativ and Ablynx (average
Sanofi Pasteur’s vaccine portfolio. cost of 0.96%).

Net debt evolution since 2014

€14.1 BN

€8.2 BN
€7.1 BN €7.3 BN

€5.2 BN

2014 2015 2016 2017 MARCH

2018

34
EARNING RECOGNITION Access to Medicine Index (ATM) MORE
FOR OUR EXTRA-FINANCIAL Stoxx® Global ESG Leaders indices > United Nations Global
Compact: Sanofi
PERFORMANCE Communication
In 2017, Sanofi achieved the UN On Progress
Sanofi’s performance is recognized Global Compact Advanced Level.
through our inclusion in the most
important international SRI (Socially
Responsible Investment) indices:
Dow Jones Sustainability Index
(DJSI) World (Bronze Class):
reference index in sustainable
development
FTSE4Good (Financial Times Stock
Exchange)

The extra-financial scores of Sanofi are presented below:

SANOFI SCORES

RATING AGENCIES 2017 2016

DJSI 80 81

MSCI A A

ATM Index(1) – 6th

CDP Climate Change A– A–

CDP Water A B

Global 100 Corporate Knights 22nd 87th

Oekom(2) #1 #1

ISS 1(3) -

FTSE4Good 98 97

Sustainalytics 6th(4) 15th

(1) Assessment performed every two years.

(2) #1 of the Pharmaceutical & Biotechnology sector.
(3) Environmental & Social score 2018.
(4) 6th out of 151. GRI 102-12

SANOFI 2017 INTEGRATED REPORT 35

OUR VALUE CREATION

Our five Global Business Units: MORE

> Sanofi.com/About us

a diversified and strong business model

Our diversified and strong model is therapeutic areas where we hold
based on complementary activities leadership positions and those with
focused on human health. Our strong growth potential.
five Global Business Units include

SANOFI GENZYME SANOFI PASTEUR DIABETES & CARDIOVASCULAR GENERAL MEDICINES & EMERGING MARKETS CONSUMER
(SPECIALTY CARE) (VACCINES) DISEASES (GEM) HEALTHCARE (CHC)

2017 SALES: €5.67 BILLION 2017 SALES: €5.10 BILLION 2017 SALES: €5.40 BILLION 2017 SALES: €14.05 BILLION 2017 SALES: €4.83 BILLION
SALES
16.2% OF COMPANY SALES(1) 14.5% OF COMPANY SALES 15.4% OF COMPANY SALES(1) 40.1% OF COMPANY SALES(3) 13.8% OF COMPANY SALES

23 treatments approved in Five therapeutic areas: Diabetes The GEM GBU comprises Established Products Four main Over The Counter (OTC)
markets around the world, pediatric combinations, Toujeo®, insulin glargine and Generics worldwide, as well as all medication categories:
focused on Specialty Care influenza, meningitis, injection. Successful 2017 year pharmaceutical sales in Emerging Markets(4) • Cough & cold, Allergy
medicines: rare diseases and adult boosters, travelers with sales up by 27% to €816 Established products worldwide: • Pain care
rare blood disorders(2), multiple and other vaccines for million • Account for nearly one third of company • Digestive health
sclerosis, oncology and endemic countries Lantus®, a leading brand in sales • Nutritionals
immunology A global leader in a insulin • Sanofi is a key player in large therapeutic Sanofi is one of the top 3 players in
Rare Diseases: sustained growing market Soliqua®/Suliqua®, a new fixed- areas, such as Cardiovascular, Renal, Anti- Consumer Healthcare(7) with the
leadership in rare diseases #4 in global vaccines ratio combination basal insulin hypertensive or Thrombosis (#1 worldwide completed integration of Boehringer
Rare Blood Disorders: building market and GLP-1 product for type 2 in Antiplatelet and Renal, #4 worldwide in Ingelheim’s CHC business
a strong position with the Leading positions in diabetes patients uncontrolled Thrombosis)(5)(6) #1 in Digestive health, #2 in Pain care,
acquisitions of Bioverativ and influenza and pediatric on basal insulin In Mature Markets: Established Products and #3 in Nutritionals and #5 in Cough and
Ablynx combination vaccines Generics cold, Allergy care
PORTFOLIO
AND MARKET Multiple Sclerosis: a growing Acquisition of Protein Cardiovascular diseases In Emerging Markets: Market share: 4.1% in 2017
RANKING franchise with key products Sciences in 2017, a Praluent®, a PCSK9 inhibitor • Full Sanofi pharma portfolio: Solutions for
Aubagio® and Lemtrada® company whose influenza for adults with heterozygous Diabetes, Cardiovascular diseases, Specialty
Oncology: significant vaccine production familial hypercholesterolemia or Care medicines, Established Products and
expansion of portfolio via a technology will allow atherosclerotic heart problems, Generics
strengthened pipeline in the Sanofi Pasteur to expand who need additional lowering of • Sanofi ranks #1 in total pharma market, #2
key field of Immuno-Oncology its production expertise LDL cholesterol. Positive results of in Diabetes, #1 in Lysosomal Storage Diseases
Immunology: a promising and capacity the ODYSSEY OUTCOMES study (Rare Diseases excluding hemophilia), #2 in
franchise with Dupixent® and showing significant reduction Hypertension, #2 in Thrombosis(5)(6)
Kevzara® of risks of major adverse
cardiovascular events in patients
who had suffered a recent acute
coronary syndrome event
Multaq®, an antiarrhythmic
medicine in atrial fibrillation

Proven ability to execute in Over €500 million invested Strong heritage and long-term Extensive portfolio across key therapeutic areas Complementary brands and strong
specialized disease areas every year in R&D and collaborations in Diabetes & In Emerging Markets, historical leadership and portfolio in key categories
Ability to enhance disease Medical Cardiovascular footprint (scientific, commercial and industrial) Proven expertise in switches from
awareness and provide Collaborations In-depth insights on changing and strong brand loyalty prescribed medication to OTC
support to help ensure patients accounting for 50% of needs of all stakeholders,
STRENGTHS get access to the medicine current pipeline including patients, healthcare
they need professionals and payers
Science and technology-
based solutions designed to
help improve outcomes for all
stakeholders

(3) Includes Emerging Markets sales for Diabetes & Cardiovascular and Specialty Care.
(4) Emerging Markets = Africa, Asia, China, Eurasia & Middle East, Latin America.
(5) Market share, IMS MIDAS Quarterly data – Full year 2017 – Constant euro.
(6) Antiplatelet defined as ATC3 B01C; Renal defined as ATC4 V03G2; Hypertension defined as ARBs
(1) Does not include Emerging Markets sales. and ACEs; Thrombosis defined as ATC3 B01B/E/F/X.
(2) Following the acquisition of Bioverativ in March 2018. (7) Source: Nicholas Hall & Company FY 2017.

36 SANOFI 2017 INTEGRATED REPORT 37

OUR VALUE CREATION

Sharing value with our shareholders

and beyond
Sanofi’s financial performance enables our continued contribution to local
and global economic development. The distribution of the value generated
by our activities across the value chain benefits our many stakeholders, from
public authorities, employees and partners to suppliers and shareholders.

Our financial value distribution

PAYMENTS
BANKS AND
INVESTORS
Dividends
€3,710 million
Share buybacks
€2,162 million
Repayment of
long-term debt
€2,368 million
N
TI O
Banks net interest
paid
EA

€273 million
CR

FINANCING EMPLOYEES
Issuance of
F O R VALU E

Personnel costs
debt securities (4) €9,321 million(3)
€41 million
GOVERNMENTS
Asset disposals
PATIENTS Income and other
€535 million
taxes paid
Issuance of
€2,658 million(2)
Sanofi shares
GY

€319 million SUPPLIERS

ATE

Sanofi spend
€14,604 million
S TR

NET SALES
INVESTING
O

€35,055
UR

R
LE
U

O
PE IP INVESTING
MILLION (1) C
O

RA IN ACTIVITIES
TI N PR
GM
O D E L A ND KEY €3,268 million:
Industrial, research
and intangible
assets
€1,956 million
Equity interests
and financial
assets
€ 1,312 million

Source: Annual Report on Form 20-F 2017.

(1) In addition to income tax, Sanofi pays numerous levies and contributions, the most significant being
pharmaceutical contributions to healthcare systems globally (mainly deducted from gross sales), which
amounted to more than €5,061 million in 2017.
(2) Based on business operating income, income tax expense amounted to €2,106 million. The effective
tax rate based on our business net income was 23.5% in 2017. Other levies and taxes amounted to more
than €550 million.
(3) Including social security contributions of €1,977 million.
(4) See net debt evolution page 34. GRI 102-9

38
CONNECTING EACH willingness to strengthen FACTSHEETS
EMPLOYEE WITH SANOFI’S Sanofi employee share > Tax policy
SUCCESS AND PERFORMANCE ownership, through regular
implementation of an
Sanofi’s employees hold 1.54% Employee Stock Purchase Plan
of Sanofi share capital (1.43% in (ESPP) enabling employees to
December 2016). participate in the Company’s
Sanofi Board and Sanofi General growth and federating
Management reiterate their employees worldwide.

Employee Stock Purchase Plan since 2013

2013 2016

Action Plan 2013 Action Plan 2016

Reference price: €74.06 Reference price: €71.56
Subscription price: €59.25 Subscription price: €57.25
14,770 participants 24,218 participants
14.5% participation rate 23.6% participation rate
1.7 million shares subscribed 1.8 million shares subscribed

Action Plan 2017 Action 2018

Reference price: €87.50 Resolution voted by the
Subscription price: €70.01 Annual General Meeting
25,760 participants in May 2017 for an
26% participation rate implementation in June 2018
1.5 million shares subscribed in more than 70 countries

IMPLEMENTING A RESPONSIBLE of our leading products originates

TAX POLICY from Western Europe. More than
30 production plants, including the
In 2017, the Company’s income tax majority of our plants and over half
expense on business operating our Research and Development
income was €2.1 billion worldwide. sites are also located in Western
As a multinational corporation, Europe. The amount of income
Sanofi has a responsibility to pay taxes we paid in 2017 in our three
an appropriate amount of tax main countries: Germany, the US
and comply with the laws and rules and France (excluding the disposal
in force in all the countries where of our Animal Health business)
we do business. Our headquarters represented 57% of our Company
are located in France and the cash tax.
intellectual property of many

SANOFI 2017 INTEGRATED REPORT 39

OUR VALUE CREATION

Creating value through

science and innovation
Sanofi, a patient-focused, science-driven Company
As a science-driven company, Sanofi is focusing on constantly innovating to
better serve the needs of patients. Our aim is to discover solutions to the world’s
most pressing unmet medical needs. Patients are at the heart of our activities.
Being patient-focused means listening to the patient voice to develop insights
that help us focus on their real needs by understanding what it is like to live with
their disease or condition, what is missing from their current treatment and where
gaps exist in their care. We integrate this information into the development of new
medicines or towards addressing prescribing habits. In the past five years, we
have applied this principle to numerous disease areas seeking to improve the
efficacy, safety and usefulness of our medicines.
As digitalization, artificial intelligence and technology continue to develop,
we are leveraging these opportunities to empower patients to better manage
their disease. Our digital strategy is applied throughout the value chain to spur
innovation in our R&D, manufacturing, product development, distribution and
sales and marketing. Our innovation also relies on the many partnerships we have
formed with researchers, academic institutions, start-ups and other companies.
We actively seek innovative opportunities that will contribute to increasing our
research agility for the benefit of patients.

A science-driven Company innovating to better serve the needs of patients

NS
T IO
RA
PE
O
UR
O

MANUFACTURING
OF

DEVELOPMENT
AND DISTRIBUTION
LER

L A B O R ATI O N S
I TA L A S A N E N A B

C U S TO M E R S

PATIENTS
RESEARCH SALES AND
COL

MARKETING
LED
DIG

AB
EN

PRODUCTS
LY

AND
AL

SOLUTIONS USED
IT
IG

BY PATIENTS
D

DI S
GIT ON
AL P UTI
R O DUCT S AN D SOL

40
Becoming an innovative leader
through R&D
Research and Development is a key OUR KEY R&D PRIORITIES
driver of Sanofi’s future growth. In
recognition of its importance, we First, we want to deliver the late-stage
have been continuously increasing pipeline and succeed in our next
investments in R&D, reaching launches. These include new indication
€5.5 billion in 2017, while 15,000(1) approvals for Dupixent®, such as asthma,
R&D employees are committed every and two major launches in the field of
day to making Sanofi an innovative oncology: cemiplimab (PD-1 inhibitor)
leader. In support of our 2020 strategic in cutaneous squamous cell carcinoma
roadmap, we initiated R&D 2.0 to and isatuximab (anti-CD38 monoclonal
transform our organization and antibody) in multiple myeloma (see R&D
operational processes. Actions include pipeline for other projects).
strengthening our Research capacity In research, we are focused on
and mastering the technologies that accelerating the entry of high priority
will become the future of medicine, projects into the clinic, building an
including biologics. Across our pipeline, immunology and immuno-oncology
we’re moving from single-targeting pipeline and establishing enabling
to multi-targeting therapeutics capabilities in biologics. Biologics provide
and leveraging groundbreaking several potential advantages, including
technologies. Following a streamlining more specificity and less off-target
of our R&D portfolio, 65% of our pipeline toxicity, the ability to integrate multi-
today is composed of first-in-class functionality in one molecule, a higher
projects. We are dedicated to being at probability of success and an opportunity
the leading edge of scientific discovery for diverse modalities.
and therapeutic advancements These priorities are driven by our new
– defining the new frontiers of R&D model based on three strategic
medicine and Empowering Life. transformations: moving towards
(1) Includes medical, IA and business unit biologics in addition to other modalities,
functions working with R&D. developing multi-targeting approaches
and building Sanofi’s own proprietary
technology platforms.

Our R&D strategy

THERAPEUTIC MODALITIES SMALL MOLECULES BIOLOGICS

BIOLOGICS
Sanofi has traditionally been a small molecule company, but our pipeline is now rich in new biologic products – precision
medicines optimized for success.

MODE OF ACTION MONO-TARGETING MULTI-TARGETING

MULTI-TARGETING
We know that complex chronic diseases are not caused by an abnormality in a single molecule or target but reflect the interplay
of multiple disease mechanisms and pathways. Focusing on therapeutic approaches that can simultaneously modulate
multiple targets in core disease pathways has the potential to attack several diseases with a single drug or bring improved risk
benefit in the treatment of a single disease. Dupilumab is an example of our multi-targeting approach (dual action against both
the Interleukin 4 receptor and the Interleukin 13 receptor) that has potential across several indications.

TECHNOLOGY PLATFORMS LICENSING PROPRIETARY

PROPRIETARY
We have extended our range of abilities, skills and technologies. We have reinforced our scientific base and built proprietary
research platforms (e.g. multi-specific antibodies, antibody drug conjugates, triagonal peptides) in our key therapeutic areas.

SANOFI 2017 INTEGRATED REPORT 41

OUR VALUE CREATION

OUR R&D PIPELINE – NEW MOLECULAR ENTITIES,

VACCINES AND ADDITIONAL INDICATIONS(*)

We have a robust portfolio, measured stage development(1). By 2020,

by the 74 projects in clinical we plan to apply for registration
development, including 37 new of 8 NMEs and 16 new additional
molecular entities (NMEs) and indication applications.
vaccines and 28 projects in late (1) As of April 2018.

PHASE 1 (TOTAL:19) PHASE 2 (TOTAL:27) PHASE 3 (TOTAL:22) REGISTRATION (TOTAL:6)

SAR439794 DUPILUMAB(**) SAR440340(**) DUPILUMAB(**) DUPIXENT®(**) DUPILUMAB(**)

Peanut Allergy Eosinophilic Esophagitis Asthma Asthma 6 - 11 years old Atopic Dermatitis 12 – 17 years old Asthma 12 years + (US/EU)
R SARILUMAB(**) SAR156597 DUPILUMAB(**) DUPIXENT®(**)
IMMUNO-
INFLAMMATION Polyarticular Juvenile Idiopath. Systemic Scleroderma Nasal Polyposis Atopic Dermatitis 6 – 11 years old
Arthritis DUPIXENT®(**)
SARILUMAB(**) GZ389988 Atopic Dermatitis 6 months -
Systemic Juvenile Arthritis Osteoarthritis 5 years old

ISATUXIMAB + CyBorD(1) SAR439859 + PALBOCICLIB R SAR566658 ISATUXIMAB CEMIPLIMAB(3)(**) CEMIPLIMAB(3)(**)

Newly Diagnosed MM Metastatic Breast Cancer Triple Negative Breast Cancer 3L Relapsing Refractory 1L NSCLC Advanced CSCC (EU)
MM (ICARIA)
O REGN3767(2) SAR439859 R CEMIPLIMAB(3)(**)

Advanced Cancers Metastatic Breast Cancer Advanced Basal Cell ISATUXIMAB CEMIPLIMAB(3)(**)
Carcinoma 1-3L Relapsing 2L Cervical Cancer
Refractory MM (IKEMA)
ONCOLOGY O CEMIPLIMAB(3)(**) SAR439459 ISATUXIMAB + CEMIPLIMAB(3)(**)
Advanced Solid Tumors Relapsing Refractory MM ISATUXIMAB
+ REGN3767(2)
1L Newly Diagnosed
Advanced Cancers MM (IMROZ)
SAR408701 SAR439459 ISATUXIMAB + CEMIPLIMAB(3)(**)
Solid Tumors + CEMIPLIMAB(3)(**) Advanced Malignancies
Advanced Solid Tumors
R
R OLIPUDASE ALFA VENGLUSTAT AVALGLUCOSIDASE ALFA Registration study
Acid Sphingomyelinase Gaucher Disease Type 3 Pompe Disease O Opt-in rights products for
which rights have not been
RARE DISEASES Deficiency(4) FITUSIRAN(6) exercised yet
AND RARE O SAR339375(5) VENGLUSTAT Hemophilia A and B
BLOOD Fabry Disease
Alport Syndrome
DISORDERS
BIV V0 01 BIV V0 09 BIV V0 09
Hemophilia A Immune Thrombocytopenia Cold Agglutinin Disease

SAR438335 SOTAGLIFLOZIN(**) SAR425899 SOTAGLIFLOZIN(**) SAR341402 SOTAGLIFLOZIN(**)

Type 2 Diabetes Worsening Heart Failure in Obesity/Overweight Type 2 Diabetes Type 1/2 Diabetes Type 1 Diabetes (US/EU)
Diabetes in T2D (*) Data related to all studies
DIABETES EFPEGLENATIDE(**) published on clinicaltrials.
SAR440181(7)(**) MAVACAMTEN(8)(**) SAR407899 Type 2 Diabetes gov
CARDIO. &
Dilated Cardiomyopathy Obstructive Hypertrophic Microvascular Angina (**) Partnered and/or in
METABOLISM
Cardiomyopathy collaboration – Sanofi may
have limited or shared rights
SAR247799 PRALUENT®(**) on some of these products
Cardiovascular indication CV events reduction
(1) Cyclophosmamide +
bortezomib (Velcade®) +
USHSTAT® SAR442168(9) VENGLUSTAT AUBAGIO ® LEMTRADA ® dexamethasone
Usher Syndrome 1B Multiple Sclerosis Gaucher related Parkinson’s Relapsing Multiple Relapsing Remitting Multiple (2) Regeneron product for
MS, NEURO, Disease Sclerosis - Pediatric Sclerosis - Pediatric which Sanofi has opt-in right
GENE THERAPY (3) Also known as SAR439684
SAR228810 SAR422459 and REGN281
Alzheimer’s Disease Stargardt Disease (4) Also known as Niemann
Pick type B
HERPES SIMPLEX SHAN 6 TUBERCULOSIS FLUZONE® QIV HD MEN QUAD TT VAXIGRIP ® QIV IM (5) Regulus product for which
VIRUS TYPE 2 DTP-HepB-Polio-Hib Recombinant subunit Quadrivalent Advanced generation Quadrivalent inactivated Influenza Sanofi has opt-in right
HSV-2 vaccine Pediatric hexavalent vaccine vaccine inactivated Influenza meningococcal vaccine 6 - 35 months (6) Following the Alnylam/
vaccine - High dose ACYW conjugate vaccine Sanofi strategic
RESPIRATORY SYNCYTIAL ADACEL+ HIV restructuring of the RNAi
VIRUS Tdap booster Viral vector prime & PEDIATRIC PR5I therapeutics rare disease
VACCINES Infants Vaccines rgp120 boost vaccine PENTAVALENT VACCINE DTP-HepB-Polio-Hib alliance announced in
AND INFECTIOUS DTP-Polio-Hib Pediatric hexavalent vaccine (US) January 2018, Sanofi now
DISEASES RABIES VRVg SP0232(10) mAb(**)
Purified vero rabies vaccine Respiratory syncytial virus Japan has global rights on fitusiran
Monoclonal Antibody (7) Also known as MYK491
FLUZONE® 0.5 ML QIV
Quadrivalent inactivated Influenza (8) Also known as SAR439152
Combination and MYK461
FERROQUINE/OZ439(**) vaccine 6 months+
(9) Also known as PRN2246
Antimalarial (10) Also known as MEDI8897

42 SANOFI 2017 INTEGRATED REPORT 43

OUR VALUE CREATION

CREATION OF A NEW GLOBAL DEVELOPING DIGITAL CLINICAL MORE

RARE BLOOD DISORDERS TRIALS TO IMPROVE RECRUITMENT > Optimizing Clinical
Trials with Digital
FRANCHISE AND REDUCE TRIAL TIMES Technology

Sanofi has become a leader in Clinical trials are critical for new
rare blood disorders through the medicines to make it from the
renegotiation of our alliance with research lab to patients in need.
Alnylam to obtain full rights on These studies can provide important
fitusiran, a new generation medicine data that include proper dosage,
for hemophilia, the acquisition the benefits to patients and potential
of Bioverativ, a world leader in side effects. To tackle the growing
hemophilia, and the tender offer to challenge of finding appropriate
acquire Ablynx with a potential of participants for clinical trials,
more than 45 candidate-medicines especially for treatments that target
and a unique proprietary Nanobody® highly specific conditions affecting
technology platform. narrower patient populations, Sanofi
is taking a digital approach, enabling
improved recruitment and reduced
CREATION OF AN OPEN trial time. For this, we collaborate with
INNOVATION PLATFORM IN a large number of partners such as:
INFECTIOUS DISEASES WITH TriNetX to improve clinical trial
EVOTEC design and patient recruitment;
MDConnect and Trialspark to
By joining forces with Evotec, we help reduce the time it takes to get
have been able to accelerate anti- potential new medicines to market
infective research and development, by recruiting patients for clinical trials
addressing a true public health issue: online;
almost one million people die of Science 37 to reinvent clinical trials.
resistant infections a year, according Their unique platform moves the
to WHO. This project enables us clinical trial site out of the hospital and
to maintain our commitment to into the patient’s home. This reduces
fight against infectious diseases the time it takes to recruit patients and
by transferring(1) our research and increases the retention and diversity
early-stage development activities to of patients who participate.
Evotec, while retaining certain option
rights to develop, manufacture and
commercialize products.

(1) Transaction excludes Sanofi's vaccine R&D unit and related projects.

44
 Our stakeholders’
perspect ve
Integrating the patient’s perspective in R&D
Listening to patients helps us develop an understanding of the patient’s perspective that
can guide us in better responding to their needs. Through collaborations with patient
advocacy groups, direct patient interviews and disease-specific patient communities,
Sanofi teams obtain insights from patients that inform asset-disease alignment,
opportunities to address unmet need in specific patient populations and study design.
Patient comments have also helped us improve how we communicate about clinical
trial options. Our goal is to consistently integrate patients’ insights into the R&D decision-
making process and into Sanofi’s collective expertise.

“From the earliest stages of drug

discovery through licensing, we’ve
created an ongoing process for patient
engagement that allows us to develop
assets in an entirely new way from what
the industry has done for decades.
Sanofi’s Medical Intelligence and Patient
Perspectives group works to ensure that
patient input is integrated upstream.
A N T H O N Y YA N N I
M.D., GLOBAL HEAD,
MEDICAL INTELLIGENCE
Through virtual and in-person meetings
A N D PAT I E N T P E R S P E CT I V E S ,
SANOFI with patients, R&D teams have been
able to gather new insights into disease
processes and learn about unmet needs
and day-to-day challenges, helping
us to ensure that medicines under
development address pressing concerns.”

SANOFI 2017 INTEGRATED REPORT 45

OUR VALUE CREATION

Improving outcomes
through digital innovation
Beyond medicine and science, digital numerous innovations the digital OUR DIGITAL STRATEGY
solutions offer new advances in care revolution is bringing to health is SANOFI IS APPLYING
that improve the patient experience. Real-World Evidence (RWE), the use DIGITAL TO ACHIEVE KEY
PRIORITIES, INCLUDING:
Digital touches all areas of our business of real-world data and analytics to
and is making us rethink and adapt discover, develop and deliver new STRENGTHENING THE
EFFICIENCY AND
our model. We also are leveraging insights into healthcare intervention QUALITY OF CLINICAL
the insights gained from large data with the objective to improve patient TRIAL OPERATIONS;
LEVERAGING DIGITAL
sets to help healthcare professionals outcomes. The increasing amount THROUGHOUT
ensure their patients are getting of available data sources, such as MANUFACTURING AND
THE SUPPLY CHAIN;
solutions that best fit their needs. claims or electronic health records,
WORKING TO IMPROVE
Sanofi invests in digital healthcare to that describe patient actual usage PATIENT OUTCOMES
empower patients and the physicians of medicines is supplementing the THROUGH DIGITAL
SOLUTIONS ASSOCIATED
who support them by connecting evidence generated by traditional TO PRODUCTS HELPING
PATIENTS MANAGE THEIR
them with information and disease randomized clinical trials. Through DISEASE;
management tools that may improve the creation of our homemade big USING DATA, ANALYTICS
outcomes. Our objective is to develop data platform, DARWIN, Sanofi is AND RWE TO DEVELOP
NEW INSIGHTS.
and bring therapies to patients seeking to collect and analyze an
faster and optimize healthcare increasing amount of structured
management. We believe digital and unstructured data to better
will transform the way therapies are understand the determinants of
discovered, developed and brought patient outcomes. DARWIN has
to patients, providers and payers. already delivered more than
40 RWE projects having potential to
significantly impact the management
INTEGRATING DIGITAL THROUGH of patient health. As an example, RWE
REAL WORLD EVIDENCE has supported the identification of
patient populations that may benefit
The healthcare industry is at an from using Toujeo®. RWE is becoming
important inflection point of its a strong enabler for maximizing
history with the convergence of Sanofi’s value for our patients. The
technical, analytical and scientific RWE team’s efforts have allowed us
advances able to drastically to integrate data from more than
accelerate traditional approaches 300 million lives and more than
to deliver medicines and cover 200 projects are planned for 2018,
unmet medical needs. Among the covering areas of high patient needs.

20
RARE DISEASES
5
GENERAL MEDICINES

REAL WORLD 18
ATOPIC DERMATITIS
5
PARKINSON’S DISEASE
EVIDENCE 2018
PLANNED
PROJECTS PER
THERAPEUTIC AREA
15
ASTHMA
3
OBESITY

209
PROJECTS
11
MULTIPLE
SCLEROSIS
54
OTHER

32
DIABETES
11
ONCOLOGY

25
CARDIOVASCULAR
10
RHEUMATOID
ARTHRITIS

46
 MORE
Industrial innovation > The Digital Plant: from
Collaborative Robots
to Virtual Reality
FACTORY 4.0: CUTTING-EDGE investment program has been
MEDICINES REQUIRE CUTTING- underway over the last five years.
EDGE MANUFACTURING This is intended to boost biotech
production of biologic medicines as
With increasing advances in medical well as update our industrial network
science and innovation, complex to be more productive, agile, flexible
medicines are set to become and cost-effective than ever before.
even more important in improving Sanofi’s manufacturing sites will
people’s health worldwide. To keep become connected facilities using the
pace with this profound shift, Sanofi latest digitally-enabled technologies.
is committed through the Sanofi In addition to upgrading our plants,
Manufacturing System program to we are also upskilling our people. Our
ensuring our industrial capabilities are employee initiatives are designed to
as cutting-edge as the medicines in increase confidence in using digital
our pipeline. tools like data analytics and smart
While traditional medicines robotics. We have also introduced
accounted for about 70% of the operator training using augmented
top 100 medications marketed reality and digital 3D models of
globally prior to 2010, half of all workshops and production lines.
medicines will be biologics by 2022(1). Sanofi’s factories of the future will
State-of-the-art industrial facilities, enable us to be more flexible in
including innovative pharmaceutical responding to pipeline needs and
manufacturing technologies, are will help us produce the highest
essential to ensure the reliable, flexible quality products at lower costs,
production of a diverse portfolio of helping improve the availability
high quality medicines. To enable and affordability of our medicines
this transformation, a €4.7 billion for patients.

Towards an optimized, digitally enabled industrial operation

INTEGRATED CONNECTED
INDUSTRIALIZATION PLANT

CONNECTED TEAMS REAL-TIME DATE-DRIVEN

AND OPERATIONS SUPPLY CHAIN

SMART QUALITY

(1) According to a study by EvaluatePharma, August 2016.

SANOFI 2017 INTEGRATED REPORT 47

OUR VALUE CREATION

Collaborations: sharing expertise MORE

> Sanofi Partnering

to drive innovation brochure

Collaborations are, for us, one of the equity investments, collaborations,

fundamental elements of success. preferred partnerships, joint ventures
To better serve patients, Sanofi has or other arrangements, depending on
developed numerous innovative the partner and on our own objectives.
collaborations and strategic alliances We are committed to sharing our skills
with professional and patient and projects with leading professionals
associations, research institutions and companies that advance scientific
and leaders in healthcare and other knowledge, strengthen our network of
industries around the world. These innovation excellence and create value
relationships may be in the form of for global health in our areas of interest.

Realizing innovation through partnering collaborations

This diagram is a
representative sample
of Sanofi collaborations,
but not a comprehensive list.
(May 2018)

IMPROVING PATIENT LIVES software and professional care with the

THROUGH INTEGRATED SOLUTIONS goal of potentially improving outcomes
for people living with diabetes.
Sanofi develops partnerships Voluntis. Diabeo, a digital solution
dedicated to delivering innovative, designed to help people with diabetes
value-based medicines and integrated better manage their disease, was
solutions in targeted therapeutic areas. developed in collaboration with
Examples include: Voluntis, a French start-up. In France,
Verily. Our pioneering joint venture, the technology is fully reimbursed and
Onduo, is developing personalized the initial market response has been
solutions that combine devices, very positive.

48
 FACTSHEETS

Creating value as > Access to healthcare

a corporate citizen
For Sanofi, being a corporate citizen means doing business
responsibly and sustainably. This includes creating shared value for
our patients, employees and local communities and reducing our
environmental impact to help preserve a healthy planet.

Improving access to healthcare

Aligned with the strong expectations a growing threat in developing
of our stakeholders for better access countries. Globally, cardiovascular
to healthcare for underserved diseases, cancer, chronic respiratory
patients and responsible pricing diseases and diabetes account for
practices, we have made access to 43% of all premature deaths before
healthcare a priority. We contribute age 70.
to improving access to healthcare by Improving access to healthcare
developing initiatives for underserved requires tackling various barriers.
populations mainly in Low and It means innovating to address
Middle Income Countries (LMICs) unmet medical needs and develop
as well as through our responsible new solutions to bring healthcare
pricing policy designed to help to patients, ensuring that the
our products be affordable for all. conditions are in place in terms of
We also have specific initiatives to production, supply chain and market
improve affordability of our products access, to make the products and
in developed countries where access treatments available to patients.
to healthcare remains a challenge, It also means building capacity
for instance in the US. and awareness for stronger
healthcare systems. Finally, improving
the affordability of products,
ACCESS TO HEALTHCARE treatments and related services is also
FOR THE UNDERSERVED crucial.
Our strategy to improve access
The issue of access to quality to healthcare and medications
healthcare is set against the backdrop for the underserved is aligned with
of pressing global health needs. the global imperative to end infectious
The continued threat from infectious diseases epidemics and avoid their
disease epidemics is illustrated by: resurgence, but also to respond
216 million cases of malaria and to the growing needs of patients
445,000 deaths recorded in 2016 with non-communicable diseases.
(source: WHO); Our approach focuses on the highest
4,600 deaths per day from needs and where we can have
tuberculosis (source: the Global Fund); the greatest impact.
more than one billion people We have developed three types
affected by neglected tropical of actions to improve access
diseases (NTDs), costing developing to healthcare:
economies billions of dollars every new treatments or solutions through
year (source: WHO). innovation and R&D;
While progress is being made on new business and affordability
infectious diseases, non- models;
communicable diseases (NCDs) pose healthcare systems strengthening.

SANOFI 2017 INTEGRATED REPORT 49

OUR VALUE CREATION

Access to healthcare programs in our fields of expertise FACTSHEETS

> Access to vaccines
> Access to healthcare
programs developed
by our affiliates
> Addressing the needs
INFECTIOUS DISEASES NON-COMMUNICABLE DISEASES PARTNERS of rare diseases
patients around the
world

MORE
SDG 3.3 SDG 3.4 SDG 17 > 2017-2018 Sanofi Espoir
By 2030, end the epidemics of AIDS, tuberculosis, malaria By 2030, –30% mortality from Partnerships for Foundation brochure
and neglected tropical diseases and combat hepatitis, non-communicable diseases. the Sustainable > Brochure “Improving
water-borne diseases and other communicable diseases. Development Access to Healthcare
in Developing
Goals. Countries”
> Sanofi website/
Tackling the Mental
Health Care Gap in
Myanmar

Sleeping sickness: Sanofi is collaborating with the Drugs for Neglected Diseases Mental Health: in 2008, Sanofi and the World
Initiative (DNDi) to develop a potential new oral treatment. This treatment, Fexinidazole, Association of Social Psychiatry (WASP) joined
is currently in registration phase with the European Medicines Agency. This forces to develop the Fight Against STigma
collaboration is also focused on enabling development of adapted treatments for (FAST) program, fighting the social stigma
leishmaniasis, Chagas, and Buruli Ulcer. associated with mental illness and promoting
access to healthcare for patients with mental DNDi
Malaria: in collaboration with Medicines for Malaria Venture (MMV), we are MMV
R&D illness in developing countries. As part of
investigating and developing OZ439/Ferroquine, a potential alternative to increasingly TB Drug Accelerator
AND INNOVATION the FAST program, Sanofi collaborates with
resistant artemisinin-based treatments, currently in phase 2 clinical trials. WHO
the Myanmar Medical Association to tackle
WASP
Tuberculosis: Sanofi is a member of the TB Drug Accelerator that aims to accelerate the mental health care gap in Myanmar
the discovery and development of novel compounds against tuberculosis. by providing new technology support to
healthcare professionals.
Dengue: Dengvaxia ® is the result of many years of research and development and is
the first vaccine approved for the prevention of dengue.

Sleeping sickness: Sanofi has collaborated with WHO since 2001 with a focus on Multi-diseases: Sanofi and three other
eliminating sleeping sickness by 2020. pharmaceutical companies have launched
the Access and Affordability Initiative in Ghana WHO
Malaria: our ASAQ Winthrop® drug, developed with DNDi, and for which we did not and the Philippines together with the Bill and Global Fund
AFFORDABILITY seek patent protection, is supplied at preferential pricing. GAVI, the Vaccine Alliance
Melinda Gates Foundation (BMGF), Johns
AND AVAILABILITY UNICEF
Polio: Sanofi Pasteur has been a partner of the Global Polio Eradication Initiative for Hopkins University and local governments. The
MODELS BMGF
over twenty-five years, providing polio vaccines to UNICEF. pilot phase provided differentially discounted Governments
prices for medicines to treat NCDs such as Universities
cardiovascular conditions, type 2 diabetes,
hypertension and pre-eclampsia.

Sleeping sickness and leishmaniasis: Sanofi’s collaboration with WHO includes Diabetes: Sanofi is a partner of the International
support for diseases management and control programs, including screening of Diabetes Federation (IDF) for the Kids and
population of endemic areas, medical staff training, disease awareness campaigns, Diabetes in Schools (KIDS) program, which
logistics and infrastructure and surveillance of resistance to treatments. supports children with type 1 diabetes and
raises awareness about healthy lifestyles among
Malaria: in collaboration with national malaria control programs, ministries of IDF
HEALTH SYSTEMS schoolchildren. WHO
Education and NGOs, we have developed the Schoolchildren Against Malaria
STRENGTHENING program, in order to promote prevention behavior in schools in Africa. Sanofi is also Oncology: Sanofi Espoir Foundation’s Governments
AND AWARENESS part of the Global Fund Regional Artemisinin-resistance Initiative 2 Elimination initiative initiative called “My Child Matters” has been WASP
implemented since 2006. Other NGOs
to fight drug resistance in the Mekong area.
Mental health: the FAST program aims at
integrating mental health care with primary
care by training community health workers and
primary care physicians in mental health care.

PROGRAMS INCLUDED IN THE ACCESS

ACCELERATED COLLABORATION

GRI 203-1

50 SANOFI 2017 INTEGRATED REPORT 51

OUR VALUE CREATION

Sanofi’s engagement towards ending epidemics

of infectious diseases

Sleeping sickness have been screened for sleeping

Sleeping sickness threatens millions of sickness and over 210,000 patients
people in 36 countries of sub-Saharan have been treated.
Africa. Striving to eliminate sleeping Fexinidazole represents a potential
sickness as a public health problem by therapeutic breakthrough in the
2020 has been one of Sanofi’s priority fight to eliminate sleeping sickness,
focus areas. Through our partnership simplifying treatment by avoiding
with WHO since 2001 on neglected systematic hospitalization and
tropical diseases, Sanofi provides removing the need of lumbar punctures
treatment at no cost, supports the for patients. Sanofi is responsible for
development of local capacities and the medicine’s industrial development,
has collaborated with the Drugs for production and regulatory submission.
Neglected Diseases Initiative (DNDi) Phase II/III clinical trials completed in
to develop fexinidazole, which, if the Democratic Republic of Congo
successful, would be the first oral and Central African Republic achieved
monotherapy for all stages of sleeping their primary endpoints, enabling us
sickness. Sanofi has provided financial to pursue submission for approval by
support of approximately $80 million health authorities in 2017. Fexinidazole
since 2001 or $5 million annually. Since is now in registration phase with
2001, more than 36 million people European Medecines Agency.

Number of new cases of sleeping sickness reported

37,991 Beginning of Sanofi’s collaboration

37,177
with WHO on sleeping sickness

29,327
28,481
26,614 26,950

23,977 24,606 24,487

20,415

17,438 17,683
16,378
14,689 15,235

12,206 11,868
10,806 10,495
9,878

7,139 6,743 7,214

6,314
3,796
2,804
2,184

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Source: WHO

Malaria and children under 5 with our adapted

Malaria is one of the world’s deadliest pediatric formulae. While continued
infectious diseases. In Africa, one investment in research and innovative
child dies of malaria every two solutions for the control and prevention
minutes according to WHO. Supplied of malaria is vital, medicines alone
at preferential prices consistent are not enough to stop the spread
with applicable local law, our ASAQ of the disease. Promoting behavioral
Winthrop® drug has enabled the change is also crucial to prevent
treatment of over 450 million cases the disease. Children are the most
of malaria since its launch in 2007, vulnerable towards malaria, but
including more than 200 million infants they can also play an active role in

52
educational prevention campaigns. could ensure that people no longer FACTSHEETS
Informing and teaching them is suffer from a vaccine-preventable > Fighting neglected
tropical diseases
essential to initiating behavioral disease. Sanofi Pasteur has been > Fighting malaria
change in their communities. Since a longstanding partner of the Global > Fighting tuberculosis
2001, in partnership with National Polio Eradication Initiative (GPEI),
MORE
Malaria Control Programs (NMCPs) providing oral polio vaccines since > Malaria Moskitoon
in African countries, Sanofi has 1989 and injectable polio vaccines
developed training and awareness since 2014, with the aim of eradicating
tools specifically designed for the disease. The GPEI has made a
children, such as the Moski Kit, a tremendous contribution to this goal,
set of ludo-educational tools, the reducing the number of polio cases
most recent of which is the Moski by 99% over the past thirty years and
Toon. In collaboration with NMCPs, avoiding more than 10 million cases
ministries of Education and NGOs, we of paralysis.
developed the Schoolchildren Against Over the past decade, we have
Malaria program and implemented it provided over 6 billion doses of oral
in 17 countries to promote prevention polio vaccine (OPV) to UNICEF for use
at school in sub-Saharan Africa. in the world’s 73 poorest countries
with the support of GAVI, the Vaccine
Polio Alliance. Over the 2014-2017 period,
Sanofi is committed to providing we provided 130 million doses of
quality vaccines at affordable inactivated polio vaccine (IPV) to
prices. We work with international UNICEF to ultimately eradicate the
organizations with the aim of moving disease as part of WHO’s Polio End
towards a world where vaccination Game strategy.

THE GLOBAL POLIO AN IMPACT ON THE LIFE SANOFI PASTEUR IN

ERADICATION INITIATIVE OF MILLIONS OF CHILDREN THE FIGHT AGAINST POLIO

POLIO CASES HAVE BEEN SANOFI PASTEUR

REDUCED BY
2.5 BILLION
PROVIDED OVER

99%
THE LAST 1% IS THE MOST
CHILDREN HAVE BEEN
IMMUNIZED SINCE 1988 6 BILLION
DOSES OF OPV TO UNICEF
CHALLENGING MORE THAN OVER THE LAST DECADE

1988: 125 ENDEMIC

COUNTRIES (350,000 CASES) 10 MILLION
SANOFI PASTEUR HAS
PROVIDED MORE THAN

1
2017: CASES OF PARALYSIS

2
AVOIDED
BILLION
DOSES OF IPV
ENDEMIC COUNTRIES WORLDWIDE
(22 CASES)

$40-50 BILLION
SAVED OVER THE NEXT 20 YEARS
BY ERADICATING THE VIRUS

$11 BILLION
INVESTED IN THE FIGHT AGAINST
POLIO

SANOFI 2017 INTEGRATED REPORT 53

OUR VALUE CREATION

Addressing the burden the level of healthcare provided IN THIS REPORT

of Non-Communicable to children with cancer in lower #SanofiStories:
> Discover the story
Diseases income countries. The Sanofi Espoir of Eeshan p. 8
Foundation also recently partnered > Discover the story
Sanofi is a founding member of the with the NGO UICC(2) for the launch of of Sebastian p. 10

Access Accelerated (AA) initiative, the City Cancer Challenge, aligned

FACTSHEET
an international coalition of leading with SDGs 3 (healthy lives and well- > Mental illness and
biopharmaceutical companies being) and 11 (sustainable cities and epilepsy
working to address the burden of communities).
MORE
non-communicable diseases in lower > Access Accelerated
income countries. KiDS (Kids and Diabetes in School) website
> Access Accelerated
Many children with diabetes Year One Report
Sanofi’s engagement with AA focuses face discrimination in the school > Access and
on four flagship programs: environment, which can affect their Affordability initiative in
Ghana and the
My Child Matters (childhood self-esteem, productivity and ability Philippines report
cancer), a Sanofi Espoir Foundation to manage their disease. The KiDS > KiDS program
> My Child Matters
initiative; project is a partnership with the
Lancet article
KiDS – Kids and Diabetes in School International Diabetes Federation and > Testimonials from
(diabetes); the International Society for Pediatric healthcare profession-
als about the KiDS
FAST – Fight Against STigma (mental and Adolescent Diabetes, to support program
health); children with type 1 diabetes in
Access and affordability initiative managing their disease and avoiding
(multi-diseases) in Ghana and the discrimination at school. The program
Philippines. also raises awareness among all
schoolchildren (6-14 years old) on the
My Child Matters benefits of healthy diets and physical
Every year, more than 300,000 children activity. KiDS was launched in India
and teenagers are diagnosed with and Brazil in 2014, followed by Pakistan
cancer. About 80% live in countries and the United Arab Emirates (UAE) in
with limited resources where cure 2016. In 2017, KiDS was introduced in
rates hover around 40% – or as low Egypt, Japan, and Poland. A Global
as 10%-20% in some sub-Saharan KiDS toolkit for teachers, school nurses
African countries – compared to 80% and staff, schoolchildren and their
in developed countries(1). parents is available in 13 languages.
Since 2006, the My Child Matters In 2017, the KiDS project material
program has been working to give has been included in the National
children the same access to care, Health guide book that is used across
regardless of where they live. The schools in the UAE.
program helps improve access
to care, building capacity at the
local level through the training
of healthcare professionals. It
also creates and disseminates
information about childhood
cancer and encourages earlier
detection. Since its launch, My Child
Matters has undertaken 58 projects
in 42 countries, helped train
20,000 healthcare professionals and
treated over 75,000 children.
In 2017, the Sanofi Espoir Foundation
entered an agreement with the
International Society of Pediatric
Oncology (SIOP) to help improve

(1) Source: International Childhood Cancer Day.

(2) Union for International Cancer Control.

54
 Our stakeholders’
perspect ve
Global health, our social mission
In 2017, Sanofi created a new “Global Health” organization as part of the reorganization
of our Access to Medicines department. To deliver its mission of improving access
to healthcare, this new organization works in collaboration with many entities,
such as WHO and other international agencies, large donors and partners such as
the Bill and Melinda Gates Foundation, R&D partners such as Medicines for Malaria
Venture (MMV) or the Drugs for Neglected Diseases initiative (DNDi), NGOs, national
ministries of health, etc. Sanofi presented the Global Health organization to its
International Stakeholder Committee to collect input, share information and gather
lessons learned from other initiatives.

“Our discussions with stakeholders on

sleeping sickness are a good example
of the new Global Health organization
in action. Together with partners such
as WHO, DNDi, the Bill and Melinda
Gates Foundation and with countries,
we collaborated to develop an improved
and innovative potential oral treatment
and define country targets to fight the
LUC KUYKENS
H E A D O F G LO BA L H E A LT H
PROGRAMS, SANOFI
disease. The Stakeholder Committee
validated our approach and strategy,
making sure that we focus on those
areas where Sanofi can truly make a
difference.”

SANOFI 2017 INTEGRATED REPORT 55

OUR VALUE CREATION

RESPONSIBLE PRICING our continued efforts to act in a

transparent manner and to support
Sanofi is committed to the goal of patient access while minimizing our
making our treatments accessible contribution to healthcare inflation. Our
and affordable to patients in need. pricing model reflects this commitment
Given the growing concerns over rising while enabling us to continue to
healthcare costs, we have developed advance scientific knowledge and
an approach to pricing that reflects bring innovative treatments.

Prescription medicine pricing: our principles and perspectives

Our pricing principles

CLEAR RATIONALE FOR

U.S. FOCUS: U.S. FOCUS:
PRICING GLOBALLY AT THE
LIMITED PRICE INCREASES GREATER TRANSPARENCY
LAUNCH OF A NEW MEDICINE

WE CONSIDER: OUR COMMITMENT: ANNUAL LIST PRICE US PORTFOLIO ANNUAL AGGREGATE

Holistic value assessment INCREASES TO A LEVEL AT OR BELOW PRICE CHANGES (3)
Similar treatment options MEDICAL INFLATION RATE
Affordability
Unique factors Avg. aggregate Avg. aggregate
US medical inflation rate projections(1): list price evolution: net price evolution:
5.8% 4.0%
5.4% 5.3% 5.2%

–2.1%

1.6%

– 8.4%
2017(2) 2018 2019 2020 2016 2017 2016 2017

(1) Based on the projected US national health expenditure growth rate.

(2) As projected in 2016.
(3) Aggregate across Sanofi’s prescription portfolio.

Product affordability retail price for Lantus® or Admelog®.

in the US The VALyou program may reduce
Beyond our responsible pricing policy, out-of-pocket costs for patients by as
Sanofi has a variety of programs to much as $5,500 per year. Sanofi and
help reduce eligible patients’ out-of- Regeneron Pharmaceuticals also
pocket expenses(1), such as co-pay recently announced that a further
cards and other savings programs, reduced net price for Praluent ® will
consistent with applicable law. For be offered to US payers that agree
eligible cash-paying patients, Sanofi to reduce certain access barriers for
offers programs to lower out-of-pocket high-risk patients. For situations where
costs. Sanofi recently launched the access remains a challenge, Sanofi
Insulins VALyou Savings Program for offers patient assistance programs
eligible people living with diabetes such as Sanofi Patient Connection for
who otherwise would pay the full qualifying patients.

56
Our approach in the US FACTSHEET
> Prescription medicine
pricing
RESPONSIBLE PRICING POLICY LIMITING TOTAL ANNUAL PRICE INCREASES
MORE
> Sanofi pricing
principles for the US
> Sanofi Patient
PROGRAMS REDUCING OUT-OF-POCKET EXPENSES
Connection website

PATIENT ASSISTANCE PROGRAMS

Sanofi Patient Connection

Launched in 2012, Sanofi Patient
Connection is a US-based
comprehensive program providing
patients with three main types of SANOFI PATIENT CONNECTION
BENEFICIARIES
support: connecting them to insurance
options, providing medication at no
cost to eligible patients and identifying
alternative services available to assist
358,685
PATIENTS FOR WHOM
INSURANCE COVERAGE HAS
them. In 2017, 157,244 people were BEEN IDENTIFIED SINCE 2012
assisted across the program’s services,
bringing the total number of patients
supported since the program’s launch
525,220
PATIENTS PROVIDED
to more than 1.1 million. In 2017, WITH MEDICATIONS
AT NO COST SINCE 2012
through the program’s reimbursement
connection services, an insurance
coverage solution was identified
for 35,108 patients. The same year,
through the program’s Patient
Assistance Connection component,
made possible by Sanofi Cares North
America, medications at no cost were
provided to 70,749 eligible patients.

(1) Out-of-pocket expenses: expenses for medical care that are not reimbursed by insurance.

SANOFI 2017 INTEGRATED REPORT 57

OUR VALUE CREATION

Empowering our people

Sanofi’s mission is to understand and Human Capital Strategy: a dedicated
solve the healthcare needs of patients people agenda to engage and
throughout the world. Achieving develop our employees while making
our mission depends largely on our organization more globally
the passion and professionalism of aligned, leaner and more agile. This
the people who make up Sanofi. approach is crucial for addressing
For this reason, engaging and the challenges of an evolving external
developing people is an integral environment and the expectations of
part of our 2020 roadmap for growth. millennials.
Building on this, we have defined our

OUR STRATEGY PROGRESS AND KEY PERFORMANCE INDICATORS (KPIs)

Our agenda is based around the following pillars:

HUMAN CAPITAL
PROGRESS 2017 KPIs
STRATEGY

MAXIMIZE ORGANIZATION’S Sanofi’s first global engagement survey was People survey statistics:
EFFECTIVENESS AND EVOLVE implemented in June 2017, establishing the Participation rate: 73%;
SANOFI’S CULTURE baseline against which we can evaluate any Engagement index: 69%
future progress. It provides feedback about (index measuring employees’
Enabling us to be the employee experience at Sanofi and how engagement with their day-to-
a competitive, our culture supports our strategic priorities. day work).
globally aligned, lean This feedback helps identify and prioritize
organization with clear opportunities to improve employee engagement
focus, accountability and organizational performance. Results were
and agility, engaging transparently shared with all employees.
our people to perform A bottom-up approach was taken to engage
and be at their best teams in a two-way dialogue to understand what
to serve patients and is behind the figures and define priorities together,
stakeholders to implement action plans and initiatives at all
Global Business Unit and Global Function levels.

DEVELOP CAPABILITIES We have engaged in Strategic Workforce Planning These initiatives were put in
FOR GROWTH defining critical capabilities for tomorrow, assessing place in 2017.
competencies and building appropriate learning
Making sure we have solutions across the organization.
the right people, with We are deploying one Learning Management
the right functional skills System across Sanofi.
and ability to cooperate We put in place a global Talent Acquisition
transversally structure, staffed with specialized recruiters,
focusing on time to fill and quality of hire. All jobs
are posted and visible across Sanofi.

DEVELOP SANOFI LEADERS Progress has continued in globalizing the Global Over 4,000 employees engaged
Leadership Development portfolio to accelerate in our classroom offerings:
Empowering our leaders our cultural transformation and enable one voice • overall satisfaction score:
to drive their business of leadership with clear expectations for success 4.5/5.
and develop their across Sanofi. Participation in leadership
people for success with Sanofi offers a number of impactful leadership development programs:
integrity development programs and transversal solutions. • 33% of Sanofi executives;
We ensure a consistent penetration across • 49% of Sanofi senior leaders.
the regions, considering gender balance Programs for Sanofi first line
representation at all management levels. managers and managers of
Dedicated high quality global programs have managers:
been designed for Sanofi first line managers and • 610 managers of managers
managers of managers, with the objective to attended Leadership Essentials;
equip managers with leadership competencies for • 2,367 first line managers
tomorrow’s needs as well as providing a common attended Management
set of concepts and tools which will help them Essentials.
achieve sustainable results.

58
OUR HUMAN CAPITAL brings, we must foster a spirit of MORE
FUNDAMENTALS inclusion and provide a workplace > Chapter 4 of the 2017
Registration
where those differences can thrive document: 4.1 Social
Fostering Diversity and be leveraged to empower the information
and Inclusion lives of our employees, patients and > Diversity and Inclusion
brochure
At Sanofi, diversity and inclusion customers. A diverse workforce allows
(D&I) is foundational to how we us to better connect with our patients
operate and embedded in our core and customers, attract and retain
values. We respect the diversity the best talents and cultivate new
of our people, their backgrounds ideas by harnessing diverse thinking See Appendix 1
and experiences. In order to truly and styles to drive innovation and
tap into the richness that diversity business results.

UNCONSCIOUS GENDER BALANCE

BIAS TRAINING
GENDER BALANCE IS A
GLOBAL ROLL OUT OF D&I STRATEGIC COMMITMENT
UNCONSCIOUS BIAS SUPPORTED BY OUR
TRAINING ENCOMPASSES: SENIOR LEADERSHIP AS
A TOP PRIORITY IN OUR
OVER ORGANIZATION AND OUR

1,500
EMPLOYEES INCLUDING 62%
DIVERSITY AND INCLUSION
EFFORTS. THREE GLOBAL
INITIATIVES FOCUS ON
BUILDING AND SUPPORTING
OF COMPANY EXECUTIVES FUTURE FEMALE TALENT
THROUGH A LEADERSHIP

53
NATIONALITIES
DEVELOPMENT PROGRAM,
BUILDING AN INCLUSIVE
WORK ENVIRONMENT
AND ROLLING OUT AN
ENGAGEMENT CAMPAIGN.

16
COUNTRIES PARTICIPATING
106,566
EMPLOYEES INCLUDING
46.2% WOMEN, 53.8% MEN

42.2%
FEMALE PEOPLE MANAGERS
VS. 57.8% MALE PEOPLE
MANAGERS

38.5%
FEMALE SENIOR LEADERS
OUT OF A POPULATION OF
APPROXIMATELY
1,300 PERSONS
VS. 61.5% MALE SENIOR
LEADERS

GRI 405-1

SANOFI 2017 INTEGRATED REPORT 59

OUR VALUE CREATION

SANOFI AWARDS AND RECOGNITION MORE

> Sanofi.com/Careers
> Sanofi.us/About us/
Here are few examples of our external recognition around the world. Sanofi Awards and
is certified in different countries and regions for its leadership development, recognitions
employee engagement, working conditions or diversity.

Modelling exemplary global 

practices in leadership development
Sanofi’s Essentials management The prestigious LEAD awards
program was recognized as best recognize the world’s top leadership
global leadership program at practitioners and programs and
the 2018 HR.com Leadership highlight their roles in developing
Excellence And Development their most important asset – their
(LEAD) awards. people.

Our recognition Europe

as a Top Employer Sanofi was awarded “Top Employer”
The Top Employers Institute in Europe following recognition of
recognizes Sanofi in several seven of our European affiliates
geographies around the by the Top Employers Institute for
world which is proving global their excellence in the working
attractiveness of our HR conditions offered to employees,
practices. Our targeted goal is to talent development and continuous
get Global Top Employers certificate. improvement of human resources
practices.

Latin America
Top Employer Brazil

Africa
Top Employer Egypt Top Employer France
Top Employer South Africa Top Employer Germany
Top Employer Hungary
Asia Pacific Top Employer Italy
Top Employer China Top Employer Poland
Top Employer Spain
Top Employer United Kingdom

Exemplary practices
in North America

60
 Our stakeholders’
perspect ve
Engaging with communities around our sites
Sanofi strives to support the local economic, environmental and social development
of our host communities, including through the provision of direct and indirect
employment and skills. To measure the local impact of the activities of the Company
and our subcontractors, we are pilot testing a set of territorial footprint indicators
developed by Sanofi’s Stakeholder Committee.

“Ressources Humaines Sans Frontières is an NGO

that works with companies around the world,
developing collaborative tools to promote decent
employment conditions and end forced labor and
child labor throughout their supply chains. This is
my first participation in a company’s stakeholder
committee and I found the process through which
Sanofi has brought together its external and internal
stakeholders to be open and responsive.”

MARTINE COMBEMALE
FOUNDING DIRECTOR OF RESSOURCES
HUMAINES SANS FRONTIÈRES

“For an industrial site manager, it is really useful

to build relationships with local stakeholders
and to open oneself to a 360° perspective.
The Committee has enabled us to identify new
stakeholders, such as the local fishermen’s
association. The launch of a local stakeholder
dialogue will help build trust and accelerate
the search for solutions that create value for our
territorial ecosystem. For example, we are currently
collaborating to promote the development of
skills locally and implementing positive actions for
biodiversity beyond our site through an ecological
AR NAUD LE GUILLOU
HEAD OF THE ARAMON SITE
transition contract for the Aramon basin.”
(FRANCE), SANOFI
FACTSHEET
> Socio-economic footprint

SANOFI 2017 INTEGRATED REPORT 61

OUR VALUE CREATION

Engaging with communities

Sanofi is committed to listening and dedicated to the next generation in
building sustainable relationships areas like education or employability
with the communities where the and to participate in local programs
Company operates. We want to make for vulnerable populations. Through
the ecosystem around our sites more global and local initiatives, Sanofi
inclusive and sustainable and support employees volunteer their time,
our local communities, including energy and talents to make a
the community of our employees. difference and support communities
Supporting youth through education in need. We believe this strategy
and entrepreneurship is one of our creates shared value for both society
priorities and we encourage our and our business.
employees to engage in initiatives

Our community programs across Sanofi

BENEFICIARIES

VULNERABLE LOCAL
YOUTH FAMILIES OF EMPLOYEES
POPULATIONS COMMUNITIES

Sanofi Espoir Stay In School, Stay in Society (international)

Foundation Télémaque (France)
volunteering activities
with its partners Nos quartiers ont du talent (France)
(Apprentis d’Auteuil, la Sport dans la ville (France)
Maison des femmes,
Emmaüs Défi…)
VOLUNTEERING Kodiko (France) for
& PRO BONO refugees
SUPPORT
Kid Strong (China) Ma journée Patients
(France)

Skills-based volunteering program with Sanofi Espoir Foundation’s partners

(NGOs or associations), small and medium entreprises or start-ups (France)

Across Sanofi in the US, our volunteering activities support around 70 local
organizations Enfants de Sanofi (Int.)

Program Midwives for Life of the Sanofi Espoir Foundation, improving

maternal and neonatal health in low- and midle- income countries with
the International Confederation of Midwives (ICM) and its NGO partners

Programs of the Sanofi Espoir Foundation to address extreme poverty and

to improve access to healthcare for the most vulnerable populations in
France in partnership with the French Red Cross, Médecins du Monde, Le
FINANCIAL Centre d’Action Sociale Protestant (CASP), Maison des femmes de Saint-Denis,
SUPPORT Samu Social de Paris, Emmaüs Défi, Comede (France), Agir pour le
Développement de la Santé des Femmes (ADSF), Intermed, Aux Captifs
la Libération and La Cabane de l’impro

Across Sanofi in the US, our Communities programs support around 200 non-
profit organizations (US)

Humanitarian emergencies programs of the Sanofi Espoir Foundation, Sanofi

US and Sanofi Cares North America in collaboration with several international
PRODUCT NGOs, including Tulipe, the Red Cross, Americares, Heart to Heart, Direct Relief
DONATIONS (international)

62
Sanofi volunteering – Key figures FACTSHEETS
> Employee volunteering
engagement
> Local social impact

MORE
> Midwives for Life video
> 2017-2018 Sanofi Espoir
Foundation brochure
5,184 26,875 36,868 25 > Enfants de Sanofi
video
EMPLOYEE HOURS SPENT BY THE BENEFICIARIES COUNTRIES
VOLUNTEERS EMPLOYEE VOLUNTEERS INVOLVED > Enfants de
Sanofi brochure
> Stay in School, Stay in
Society video
Enfants de Sanofi: a unique project family support: in case of social or
celebrating 25 years economic difficulties, help with child
When an employee’s child is facing care and other support;
a health issue, disability or problems education: in case of economic
at home or at school, Enfants de difficulty, contribute to education-
Sanofi is there. related expenses, such as education
Enfants de Sanofi is a non-profit fees, school meals, etc.
organization funded by Sanofi and The program also carries out
Sanofi’s employees. Its purpose is to collective actions tailored to See Appendix 1
help employees’ children up to age meet local needs through health
25. This program provides individual programs, education and awareness
support to eligible families worldwide campaigns. A network of more
in four areas: than 120 volunteers dedicates time
health: medical costs insufficiently to the program, in addition to their
or not reimbursed by local health professional responsibilities.
insurance companies;
expenses related to disability:
rehabilitation centers, specialized
institutions, medical devices,
prostheses, etc.;

Enfants de Sanofi – Supporting employee children for 25 years

+3,100 43,000 IN

86
CHILDREN BENEFITED CHILDREN TOOK PART
FROM INDIVIDUAL SUPPORT IN COLLECTIVE ACTIONS COUNTRIES

+120 +€1.9 MILLION

FROM EMPLOYEES
+€9 MILLION
EMPLOYEES ENGAGED FUNDING BY SANOFI
AS VOLUNTEER LOCAL DONATIONS
REPRESENTATIVES
AT SITES/COUNTRIES

GRI 413-1

SANOFI 2017 INTEGRATED REPORT 63

OUR VALUE CREATION

Fostering a healthy planet

Because the environment we raw materials we use in our medicines,
live in directly affects our health, devices and services to their potential
Sanofi is committed to monitoring end-of-life impact on human health
and reducing our environmental and the environment. We have identified
impacts. We have embarked upon five key environmental issues associated
an ambitious strategy to limit our with our operations: greenhouse
direct and indirect impacts on the gas emissions and climate change,
environment through every stage of water, pharmaceutical products in the
the life cycle of our products: from the environment, waste and biodiversity.

Limiting our environmental impacts all along our value chain

SU
PP
LI
E
RS

RAW MATERIAL R&D

RS

L U E CHAI
VA N
S UPPLIE

END OF LIFE PRODUCTION

MARKETING TRANSPORT
& STORAGE
SU
PP
LIE
DISTRIBUTION RS

The initiative called “Planet by our CEO Olivier Brandicourt and

Mobilization” is intended to engage shared with the Board. To extend
all Sanofi employees worldwide and the impact of our actions, we are
is fully supported by the Company’s engaging with our suppliers and
senior management. Led by the partners to involve them in our efforts
Health Safety Environment (HSE) to make progress on our roadmap.
division, it is now implemented with
the involvement and alignment of An ambitious commitment
many functions, including Industrial In 2010, we made ambitious
Affairs, Procurement, R&D, Finance, commitments for our industrial and
Risk management, Global Business R&D sites: to reduce scope 1 and
Units, CSR and Communications. It is scope 2 CO2 emissions by 20% and
overseen by a Steering Committee, water withdrawals by 25% (on a
chaired by Philippe Luscan, who is a constant structure basis) by 2020.
member of the Executive Committee, Through our Planet Mobilization
and supported by Operational initiative, we are setting even more
Committees that ensure consistency ambitious objectives for reducing
between targets and action plans. environmental impacts, including
The Planet Mobilization initiative and by extending the scope to the entire
its related targets were validated value chain by 2025.

64
AMBITIONS AND TARGETS OF OUR PLANET MOBILIZATION STRATEGY FACTSHEETS
> HSE management
system
AMBITION TARGETS > Overview of our
environmental impact

MORE
Achieving carbon Implement internal carbon pricing by 2020
CARBON neutrality in our Reduce greenhouse gas (GHG) emissions by > HSE policy
FOOTPRINT operations 50% by 2025 (compared to 2015)
Reach carbon neutrality in operations by 2050

Managing water Reduce water consumption by 10% by 2020

sustainably in our (compared to 2015)
activities Track, manage and optimize water use for
WATER 100% of Sanofi sites by 2025, based on a
comprehensive knowledge of the source of
water supply, with a specific focus on water
scarcity areas

Handling Incorporate PIE management into the

Pharmaceuticals development and management of products,
In the Environment the assessment and improvement of
PIE
(PIE) manufacturing activities and the promotion of
appropriate use of medicines within 100% of
our activities by 2025

Turning waste from Reuse, recycle or energy-recover 90% of the

our sites into a waste generated by all sites by 2025
WASTE
resource Achieve a landfill disposal rate < 1% and
promote zero-landfill by 2025

Preserving local Implement biodiversity risk management

biodiversity at all of programs on 100% of priority sites (defined
BIODIVERSITY our sites through risk evaluation study) by 2020
Develop biodiversity awareness programs at all
sites by 2025

Fostering ecodesign Design and develop all new products in order

ECODESIGN & and promoting to reduce their environmental footprint, while
ECOMARKETING greener solutions ensuring high standards of quality and security
of our products

Sanofi World Environment Day ADDRESSING CLIMATE CHANGE

In October 2017, 70 countries
celebrated the first Sanofi World Sanofi is aware of the risks that
Environment Day. On this occasion, climate change poses to our natural
Sanofi shared information on our environment, to human health and to
Planet Mobilization strategy and our own activities, and is committed to
achievements at Industrial Affairs, addressing them. Sanofi was an official
R&D and administrative sites and partner of the United Nations COP 21
by Commercial Operations. The climate change convention in 2015
day provided an opportunity to and joined other French companies
raise awareness and reinforce our in calling for action to address climate
environmental commitments. Local change. This commitment was
project teams at Sanofi sites also reaffirmed in 2017.
held events around the world with the Sanofi addresses the issues related
support of Country Chairs, Site Heads to climate change through two
and HSE, CSR and Communications approaches:
networks. Based on the event’s success, Adaptation: anticipating the
Sanofi expects to hold an event each consequences of climate change on
year around Earth Day on April 22. human health, in addition to working to

SANOFI 2017 INTEGRATED REPORT 65

OUR VALUE CREATION

prevent risks posed to our activities. conditions, such as malaria, sleeping FACTSHEETS
Mitigation: reducing Sanofi’s sickness and leishmaniasis; > Climate Change and
Health
greenhouse gas (GHG) emissions, supporting communities affected
which are the first driver of climate by crises related to climate change
change. through emergency assistance
efforts led by Sanofi Espoir
Addressing the impact Foundation, Sanofi US and Sanofi
of climate change CARES North America;
and environmental issues raising awareness among our
on health stakeholders, such as employees,
Climate change has direct health healthcare professionals, and
impacts as it can lead to extreme patients.
weather phenomena, heatwaves Climate change’s impacts on health
or extreme cold, food shortages, are followed up on Sanofi’s emerging
difficulties in accessing drinking risks radar.
water and increased air-pollution.
Climate change also induces indirect Raising awareness among
effects such as creating favorable our stakeholders
conditions for the intensification and In 2016, Sanofi’s CHC Allergy team
spread of vector-borne diseases or initiated the first global expert
increasing the allergenicity of pollens. meeting on “Air pollution and
As a global healthcare leader, Sanofi Allergy” in Singapore with key opinion
contributes to addressing climate leaders from 21 countries. The
change impacts on health through conference focused on the medical
the following actions, involving various consequences of climate-induced
internal stakeholders including GBUs, modifications to allergenic plants
Global Functions and country teams: and pollen distribution for patients
continuing R&D efforts for some with allergic rhinitis and asthma.
climate-sensitive diseases like Many local initiatives have been
sleeping sickness or malaria; conducted around the world in 2017,
leveraging our portfolio and actively such as the “Resolution Against
working with organizations and Pollution in India”, focusing on air
institutions to provide medicines to pollution and respiratory allergies
patients affected by some diseases in collaboration with the National
influenced by modified climate Association of Otolaryngologists.

Climate change and its impact on health

Pollution Cutaneous diseases

RISE OF AIR
Increase of pollen Respiratory diseases
EMISSIONS
allergenicity (e.g. asthma, allergies)

Migrations Mental Health effects

RISE OF Severe weather Malnutrition
TEMPERATURE events Cardiovascular diseases
Death

Drought Vector borne diseases (e.g.

Flooding malaria, dengue, zika, yellow
WATER CYCLE
fever)
CHANGES
Water borne diseases
(e.g. cholera)

SANOFI’S RESPONSIBILITY IS TO ANTICIPATE A POSSIBLE RESPONSE TO THESE THREATS FOR HUMAN HEALTH

Continue Research and Leverage the Support communities Raise awareness of

Development programs for current Sanofi affected by crisis related stakeholders (patients,
climate-sensitive diseases portfolio to climate change healthcare professionals,
employees…)

66
Anticipating risks posed Joining the Science-Based FACTSHEETS
to our activities Targets initiative > Sanofi’s Risks and
Opportunities related
For more information on how Sanofi In March 2018, Sanofi committed to to Climate Change
manages the risks that climate the Science-Based Targets initiative > Carbon Footprint
change poses of our activities, (SBTi) with a focus on aligning our > Protection of the
atmosphere
please see: Chapter 4 of our 2017 carbon reduction performance with
Registration Document, 4.2.3.2.4. levels required to limit global warming MORE
Adapting to the consequences of to below 2°C. The SBTi provides a > Chapter 4 of the 2017
Registration
climate change. framework for companies to define document: 4.2.3
how much and how quickly we must Environmental
Reducing our greenhouse reduce our GHG emissions. Sanofi information
> Science-Based Targets
gas (GHG) footprint has already established targets on initiative
Our mitigation strategy for our scope 1 and scope 2 emissions
climate change involves limiting that are aligned with SBTi and will
our greenhouse gas emissions define scope 3 emissions targets and
and focuses mainly on energy action plans across our operations
consumption. This strategy is part (e.g. business, Procurement, External See Appendix 1
of Planet Mobilization and therefore Manufacturing, etc.).
sponsored and supported at the
highest level of the Company.
Sanofi has set up ambitious carbon
footprint targets, including becoming
carbon neutral by 2050 in terms of
emissions from industrial, R&D and CLIMATE CHANGE
administrative sites, and from sales KEY PERFORMANCE
INDICATORS
representatives’ vehicle fleets (scopes
1&2). Our first step is to reduce our
CO2 emissions by 50% by 2025 (from 10 M
TOTAL CARBON
tCO2eq/year

a 2015 baseline) for the same scope. FOOTPRINT OF SANOFI

Sanofi’s approach on energy is to:
Consume less: optimizing energy
efficiency -23%
EFFECTIVE REDUCTION
Consume smarter: reducing OF EMISSIONS FROM
energy consumption at source with MANUFACTURING AND R&D
SITES SINCE 2010
high efficiency cogeneration units
and/or heat production units
Consume differently: using 120 gCO2 /km
LIMIT OF EMISSIONS
renewables. REQUESTED BY SANOFI
FOR ITS SALES REPS
CAR FLEET IN FRANCE
By 2020, Sanofi will establish internal
carbon pricing to promote the
investment in low carbon capital
expenditures (CAPEX) enabling us to
2°C
COMMITMENT ON CLIMATE
ALIGNED ON WARMING
reach our GHG targets. LIMIT
Sanofi is also playing a leading role
through the Pharma Environmental
Group (PEG), which is working
A-
RATING 2017 OF OUR
to establish Carbon scope 3 POLICY ON MANAGING
GHG EMISSIONS BY THE
accounting methods for the CDP CLIMATE CHANGE,
pharmaceutical industry at a global ONE OF THE BEST IN
OUR INDUSTRY
level.

GRI 302-4
GRI 305-5

SANOFI 2017 INTEGRATED REPORT 67

OUR VALUE CREATION

MANAGING WATER FACTSHEET

SUSTAINABLY IN OUR ACTIVITIES > Water resource
management
WATER KEY PERFORMANCE
Water is needed for many processes INDICATORS
MORE
in the production of medicines and > Chapter 4 of the 2017
vaccines, often in order to meet very
stringent quality standards. Sanofi -22.6%
REDUCTION OF WATER
Registration document:
4.2.3 Environmental
information
is committed to managing this vital WITHDRAWN SINCE 2010
resource responsibly, particularly
in areas where water supplies are
limited, through several measures:
75%
OF WATER IS USED IN
Water resource management plan: CHEMISTRY FOR COOLING See Appendix 1
USAGE MAINLY
each site is required to establish such
a plan. Sites at potential risk from
water scarcity also must establish
and comply with a plan for reducing
A
CDP WATER’S 2017
RATING OF SANOFI’S
water consumption tailored to the RISK-BASED APPROACH
TO MANAGING WATER
site’s local context and industrial RESOURCES, ONE OF
characteristics. Some sites may be THE BEST ACROSS ALL
INDUSTRIES
required to conduct in-depth studies
on the local water supply situation.
Responsible use of water: specific
operating procedures govern the
use of water during manufacturing
and heat exchanges and promote
reduced consumption.
Management of wastewater
discharge: chemical oxygen
demand, the primary environmental
indicator of effluents, fell by 15.3%
between 2016 and 2017, mainly as
a result of a significant reduction
at our site in Elbeuf (France) as a
new in-house treatment facility was
brought into service.

68
HANDLING PHARMACEUTICALS Commercialization: Our FACTSHEETS
IN THE ENVIRONMENT promotional activities are aligned with > Pharmaceuticals in the
environment
the goal of advancing stewardship. > Disposal of unused
Pharmaceutical substances may Sanofi develops specific tools to medicines and user
end up in the environment in various educate healthcare professionals information
> Soil and ground water
ways. The main source is considered and patients on the good use of remediation
to be the use of pharmaceuticals antibiotics. > Circular Economy
> Waste management
by patients. After pharmaceuticals Vaccination also has a role to play
> Biodiversity and Biopiracy
are absorbed or administered, they in strategies for addressing AMR by
are excreted by patients in the same preventing viral diseases for which MORE

form, or they are transformed by the antibiotics are inappropriately > Chapter 4 of the 2017
Registration document:
body into metabolites which may be prescribed. 4.2.3 Environmental
released into the environment through Sanofi is a founding member and a information
> AMR industry Alliance
sewers and sewage treatment plants. signatory to the “AMR Roadmap 2020” Roadmap
Other sources of discharge include to help combat microbial resistance
emissions from manufacturing plants to antibiotics.
and the inappropriate disposal of
unused or expired medicines by
end-users. Sanofi is involved in several TURNING WASTE FROM See Appendix 1
programs to minimize the potential OUR SITES INTO A RESOURCE
environmental impacts of medicines,
including: The key to our policy is to reduce
Evaluating and minimizing waste generation at source; reuse,
the environmental impacts of recycle or recover on-site or with
manufacturing activities selected contractors; incinerate, with
Increasing knowledge of the energy recovery wherever possible
environmental fate and potential and send waste to landfills as a last
impact of our products before and resort, provided that the landfill is
after their launch on the market properly regulated and monitored.
Encouraging and supporting the
proper use and proper disposal of
medicines by patients. We support PRESERVING LOCAL
targeted programs that collect unused BIODIVERSITY AT ALL
medicines from patients and inform OF OUR SITES
consumers about their safe disposal in
countries around the world. Natural resources are potential
In addition, we continue to contribute sources of innovative new medicines
to advancing scientific research on that could prevent or cure diseases.
this topic. Sanofi is committed to protecting and
conserving all natural resources and
Fighting antimicrobial preserving ecosystems.
resistance
Antimicrobial resistance (AMR) is
a major global health issue that
Sanofi, with other pharmaceutical
companies, is committed to fighting
across the value chain of a medicine:
R&D: Sanofi activities in the field of
medicine against severe bacterial
infections and, in particular, infections
caused by gram-negative bacteria
and tuberculosis, are transferred
to an open innovation platform to
accelerate development.
Manufacturing: Sanofi works to
reduce the environmental impact of
our manufacturing sites globally and GRI 306-5
those of our suppliers. GRI 413-2

SANOFI 2017 INTEGRATED REPORT 69

 3
OUR
FUNDAMENTALS
Our operating model, sound governance structure, robust
risk management and ethics and transparency philosophy
are key to the success of Sanofi as they support our ability
to create value in the short, medium and long term.
In a moving environment, we are determined to respect
the ethical principles governing our activities and expect
the same from our business partners.

70
Our operating model
Sanofi’s five Global Business Units functions support the GBUs and
(GBUs) ensure close alignment ensure accountability, efficiency and
between our business activities and excellence.
the strategic roadmap. Globalized

5 GBUs supported by globalized functions…

SANOFI GENZYME SANOFI PASTEUR DIABETES & GENERAL MEDICINES & CONSUMER
(SPECIALITY CARE) (VACCINES) CARDIOVASCULAR EMERGING MARKETS HEALTHCARE

GLOBAL FUNCTIONS:

Business Transformation Industrial Affairs

Legal/Ethics & Business Integrity Research & Development

PATIENTS
Finance Medical

Human Resources Strategy & Business Development

External Affairs

… relying on our governance and key principles

HIGH STANDARDS OF ETHICS

A SOUND GOVERNANCE A ROBUST RISK MANAGEMENT AND TRANSPARENCY

See p. 72 See p. 77 See p. 80

SANOFI 2017 INTEGRATED REPORT 71

OUR FUNDAMENTALS

IN THIS REPORT

A sound governance > Our value creation

as a sustainable
economic partner
p. 32

A company shaped by robust MORE

> Sanofi.com/
and ethical governance Investors/Sanofi
Share Overview

Sanofi pursues its ambitious strategic roadmap based on strong

and transparent governance. This encompasses engaged
and open discussions with stakeholders and a compensation
policy that aligns pay and performance.

ENSURING A DYNAMIC, A diversified shareholder

TRANSPARENT AND EFFECTIVE base(1)
GOVERNANCE Sanofi’s shareholder structure
includes individual share ownership,
Sanofi’s governance provides longstanding shareholders, employees
the framework for the Company’s and institutional shareholders, all of
strategic transformation to meet whom have a stake in the Company’s
the world’s health challenges long-term development. Sanofi’s
while responding to the interests of shareholders are committed to
stakeholders and fostering proactive providing support that creates value;
dialogue between the Board and constant dialogue is an essential part
Executive Committee. of maintaining that commitment.

SANOFI EMPLOYEES
0.01% 1.54%
BLACKROCK
5.68%

FLOATING L’ORÉAL
83.34% 9.43%

Elect directors
Informs
Vote resolutions submitted by the Board of Directors
Dialogs
Ask questions

BOARD OF DIRECTORS
NO
MI AUTHOR ISATIONS RIOR
TS

AUDIT COMMITTEE
UL

NAT
NS

ES C EO – G I V ES P
O R T S – CO

CHAIRMAN OF THE BOARD

COMPENSATION COMMITTEE

SCIENTIFIC COMMITTEE
– R EP

CHIEF EXECUTIVE OFFICER

MS

STRATEGY COMMITTEE
R
FO
IN

APPOINTMENTS &
EXECUTIVE COMMITTEE
GOVERNANCE COMMITTEE

(1) Figures as of December 31, 2017. GRI 102-18

72
An international shareholder base(1) FACTSHEETS

REST OF THE WORLD SWITZERLAND

7.41%
INDIVIDUAL
> Corporate
Governance
3.1% 2.2% SHAREHOLDERS,
GERMANY INCLUDING MORE
3.3% EMPLOYEES, > Sanofi.com/
HOLD 7.41% OF
Governance
ASIA SANOFI SHARES AS
OF DECEMBER 31, > Form 20-F 2017
3.3%
2017.
REST OF EUROPE
6.6% FRANCE
35.6%
UNITED KINGDOM
14.6%
UNITED STATES
31.3%

AN ACTIVE, EXPERIENCED AND

ENGAGED BOARD OF DIRECTORS
DIVERSE SKILLS AND EXPERIENCE TO SUPPORT
VALUE CREATION (as of May 2, 2018)
The Board’s core mission is to shape
THE COMPOSITION
Sanofi’s strategy, supported by five OF THE BOARD OF
DIRECTORS CHANGED
7
DIRECTORS
specialized committees. With full OVER THE PAST FEW – BOARD MEMBERSHIP
separation of the offices of Chairman YEARS WITH THE IN INTERNATIONAL
APPOINTMENT OF GROUP
and CEO, the Company’s corporate FIVE NEW DIRECTORS,
governance framework promotes IN LINE WITH OUR
STRATEGY FOR 8
accountability. The Board is evaluated LONG-TERM VALUE DIRECTORS
CREATION ON SCIENCE – INTERNATIONAL
annually. EXPERIENCE
& INNOVATION. THESE
APPOINTMENTS MEAN
Key figures (as of May 2, 2018): ENHANCED SCIENTIFIC,
PHARMACEUTICAL AND
7
DIRECTORS
16 directors DIGITAL EXPERTISE, – MERGERS &
GENDER BALANCE,
79% independent members pursuant EXPERIENCE OF SENIOR
ACQUISITIONS

to AFEP-MEDEF Code MANAGEMENT AND

43% women
INTERNATIONAL AND
CROSS-GENERATIONAL
5
DIRECTORS
6 nationalities REPRESENTATION. – FINANCE/
ACCOUNTING
2 shareholder representatives on Board
5
2 directors representing employees DIRECTORS
– SCIENTIFIC TRAINING
5
DIRECTORS
– REGULATORY
5
DIRECTORS
– HEALTHCARE/
1
DIRECTOR
PHARMA EXPERIENCE – DIGITAL

5
DIRECTORS
– CEO ROLE IN
INTERNATIONAL GROUP

2017 ACTIVITIES (9 Board meetings with a 95% overall attendance rate)

Review of significant proposed alliances and acquisitions, and strategic opportunities

Presentations by key Group managers on their Business Units
Global environment (healthcare trends, competitive landscape, access to medicines)
Research and Development
Presentations on Sanofi’s Integrated thinking journey & CSR ambition, review on Sanofi’s policy on
equal pay and opportunities
2017 Board evaluation
Executive sessions
Review of succession planning
Creation of the Scientific Committee
Appointment of 2 directors representing employees GRI 102-18
Approval in principle of a share issue reserved for employees
GRI 405-1

SANOFI 2017 INTEGRATED REPORT 73

OUR FUNDAMENTALS

Sanofi respects high Governance Code of the Association

standards of corporate Française des Entreprises Privées,
governance of the Mouvement des Entreprises
As a company governed by French de France (AFEP-MEDEF Code) and of
law, Sanofi’s practices comply with the Autorité des marchés financiers
the French Commercial Code and the (AMF – the French financial markets
recommendations of the Corporate authority).

5 specialized advisory committees support the Board’s

decision-making (as of May 2, 2018)

AUDIT COMMITTEE

3/4 independent members

All members are deemed to be financial experts pursuant to the definition in the Sarbanes-Oxley Act
and the definition in article L. 823-19 of the French Commercial Code
Regular reviews: matters relating to the preparation and audit of accounting and financial information
and risk mapping
7 meetings in 2017 with an attendance rate of 93%
Specific reviews in 2017: review of the draft financial resolutions for the 2017 Annual General Meeting,
update on the implementation of IFRS15 (revenues) and IFRS9 (financial instruments) accounting standards,
coordination of the work between internal audit and internal control, review of the principal risks facing Sanofi

COMPENSATION COMMITTEE

3/4 independent members

Regular reviews: fixed and variable compensation of executive officers and senior management
3 meetings in 2017 with an attendance rate of 100%
Specific reviews in 2017: update on changes in “say on pay” requirements in light of amendments
to the AFEP-MEDEF Code and the “Sapin 2” Act, launch of an employee share ownership plan

APPOINTMENTS AND GOVERNANCE COMMITTEE

All 3 members are independent

Regular reviews: changes in the composition of the Board and its Committees, evaluation of Board
and Committees and succession planning for the Company’s executive bodies
5 meetings in 2017 with an attendance rate of 100%
Specific reviews in 2017: review of the Board charter, changes in the composition of the Board
and its Committees

STRATEGY COMMITTEE

2/4 independent members

Regular reviews: review of activities, in particular of Research and Development, strategic review
10 meetings in 2017 with an attendance rate of 100%
Specific reviews in 2017: external growth and partnership opportunities, review of the strategy with a focus
on digital, global environment (healthcare trends, competitive landscape, access to medicines)

SCIENTIFIC COMMITTEE

3/4 independent members

Created in March 2018 to address scientific and R&D issues
Main roles: to assist the Board in scrutinizing the strategic orientations and investments in the R&D field
in line with the strategic roadmap, to identify and discuss emerging trends and new challenges, to ensure
that processes are in place to enable optimal decision-making on investments in R&D

GRI 102-18

74
An Executive Committee background make it a highly effective
embodying Sanofi’s vision body. The Executive Committee
In 2016, Sanofi reorganized the implements the strategic decisions
Executive Committee to support of Sanofi and monitors the Company’s
our 2020 strategic roadmap and operational performance according
to reinforce strategic thinking and to the strategies defined by the
leadership. Together, its members Board of Directors. It also ensures
bring a unique mix of skills and communication and coordination
experience. Their individual expertise, between GBUs, Global Functions and
knowledge and international the Board.

OLIVIER DOMINIQUE OLIVIER JÉRÔME KAREN

BRANDICOURT CAROUGE CHARMEIL CONTAMINE LINEHAN

Chief Executive Executive VP, Executive VP Executive VP, Executive VP,

Officer Business and GM, General CFO until September Legal Affairs
Transformation Medicines and 30, 2018 and Jean- and General
Emerging Markets Baptiste Chasseloup Counsel
de Chatillon as of
October 1, 2018 

DAVID PHILIPPE ALAN MUZAMMIL AMEET

LOEW LUSCAN MAIN MANSOURI NATHWANI

Executive VP, Executive VP, Executive VP, Executive VP, Executive VP,

Sanofi Pasteur Global Industrial Consumer  Strategy Medical Affairs
Affairs Healthcare and Business
Development

STEFAN ROBERTO BILL KATHLEEN ELIAS

OELRICH PUCCI SIBOLD TREGONING ZERHOUNI

Executive VP Executive VP, Executive VP, Executive VP, Executive VP,

and GM, Diabetes & Human Resources Sanofi Genzyme External Affairs Global Research
Cardiovascular and Development
until June 30, 2018
and John Reed as
of July 1, 2018

GRI 102-18

SANOFI 2017 INTEGRATED REPORT 75

OUR FUNDAMENTALS

A compensation policy long-term performance conditions, FACTSHEET

aligned with long-term and variable cash compensation are > Corporate
Governance
value creation the two principal levers for action. The
Sanofi’s CEO compensation policy latter is based on quantitative and MORE
seeks to achieve a balance in the qualitative performance criteria: > Sanofi website/
Governance/Executive
compensation structure between fixed attainment of financial objectives Committee
compensation, benefits in kind, short- (40%): sales growth (1/3) and business > Form 20-F 2017
term variable cash compensation net income growth (2/3);
and medium-term variable equity- attainment of specified individual
based compensation. It is designed objectives (60%): individual objectives
to motivate and reward performance are adjusted annually by the Board,
by ensuring that a significant portion acting on recommendations from
of compensation is contingent on the the Compensation Committee, while
attainment of financial, operational seeking to maintain continuity and
and social(1) criteria aligned with consistency from one year to the next.
the corporate interest and with the
(1) Integrating specific criteria in line with Sanofi’s
creation of shareholder value. Equity- CSR ambition (access, communities and
based compensation, subject to environmental strategies).

Distribution between key components

of CEO compensation

CALCUL ATION BASED ON THE COMPENSATION DUE OR AWARDED

TO THE CEO FOR THE YEAR ENDED DECEMBER 31, 2017

COMPENSATION IN CASH
COMPENSATION WITH (ANNUAL REMUNERATION)
PERFORMANCE 30%
CONDITIONS
88%
FIXED COMPENSATION
12%

VARIABLE
COMPENSATION
18%(2)
LONG-TERM
INCENTIVES
70% (1)

(1) Percentage corresponding to the valuation of stock options (valuation at the date of grant using
the Black & Scholes method assuming fulfillment of the performance condition) and performance
shares awarded during the year 2017 (valuation at the date of grant assuming fulfillment of the
performance conditions. This represents the difference between the quoted market price of the
share on the date of grant and the present value of the dividends to be received over the next
three years).
(2) In accordance with Article L. 225-100 of the French Commercial Code, payment of annual variable
compensation in respect of the year ended on December 31, 2017 is contingent on a favorable
shareholder vote at the 2018 Annual General Meeting. GRI 102-18

76
 FACTSHEETS

A proactive and > Risk Management

> Emerging Risks
Management

structured risk > Sanofi’s risks and

opportunities
related to climate
change

management approach MORE

> Form 20-F 2017/Risk
factors

An integrated risk management
Sanofi continuously fosters risk launch and market safe and
management to identify and address innovative products to patients and
potential threats and opportunities healthcare professionals, and satisfy
that may impact our commitment to: unmet medical needs;
protect employees, patients and create value while delivering trust
local communities; and transparency for all stakeholders.

Risk management system

STRATEGIC PLANNING

KEY STRATEGIC STRATEGIC

OBJECTIVES RISKS

KEY TRENDS RISK REPORTING

CSR MATERIAL
TOPICS SANOFI RISK
PROFILE
EMERGING RISKS RESPONSE PLANS

OPERATIONAL
RISKS FROM
BUSINESS UNITS
AND FUNCTIONS RISK MONITORING

RISK RISK MONITORING

RISK ASSESSMENT
IDENTIFICATION AND REPORTING

SANOFI RISK MANAGEMENT the Company, as well as risks specific

ACTIVITY CONSISTS to business units and functions.
OF THREE PILLARS For example, risks related to quality
and safety of products are assessed
Identify and assess actual risks on a regular basis as their control is
Every year, steps are taken to identify critical to protecting health and to
and assess risks that may impact the meeting the expectations of patients
Company’s ability to execute our and customers.
strategy. Risks are assessed according Anticipate emerging risks
to their severity for our patients, Sanofi faces the challenges of a fast-
reputation and business, their likelihood changing environment, increasingly
and their level of control. This practice volatile economic conditions GRI 205-1
is carried out for risks transversal to and the rise of new technologies GRI 308-2

SANOFI 2017 INTEGRATED REPORT 77

OUR FUNDAMENTALS

transforming and potentially disrupting may consist of preventive actions

the Pharma business model. In this to decrease the risk’s likelihood,
context, Sanofi has developed a or corrective actions to address
specific approach to identify and potential consequences. In order
assess risks arising from long-term to anticipate and prepare risk
trends. remediation, scenarios are used
For example, digital transformation to raise management awareness
will change significantly the of the way risks may become reality.
relationships between Sanofi and For the most significant risks, effective
our stakeholders, creating new implementation of response plans is
opportunities for healthcare but also regularly reviewed and challenged by
reinforcing our obligation to continue a dedicated Risk Committee chaired
to ensure the security, integrity and by an Executive Committee member.
privacy of data processed by the For example, specific response
Company. plans have been developed to
Adapt to risks ensure the continuous supply of life-
For every risk identified, response saving medicines and key products
plans are established by operational to the markets Sanofi serves, covering
leaders, aimed at reducing risks to upstream logistic processes in
an acceptable level. According to manufacturing plants to final deliveries
the nature of the risk, response plans to patients throughout the world.

Our main risks and opportunities

The following table describes the risks analysis (see page 27). These risks are
and the mitigating actions related to a selection from the main risk areas
our Ethics and Transparency material Sanofi is facing.
topics, identified in the materiality

RISK DESCRIPTION RISK MITIGATION IN THIS REPORT

Patient protection is an absolute priority. Sanofi has the organization in place Product quality
Sanofi is committed to delivering safe to mitigate this risk: and patient safety
products worldwide, to comply with A Pharmacovigilance department (pages 82-83)
clinical trials regulations (including but to monitor drug safety signals;
RISKS RELATED not limited to informed consent rules), to
TO PATIENT provide services to patients in compliance A governance body dedicated
PROTECTION with applicable regulations and ethical to risk/benefit assessment and
principles and to ensure the protection, continuous safety monitoring;
privacy, security, ethical and compliant Teams dedicated to Company and
use of data from patients or participants in stakeholder data protection under the
clinical studies. direction of a Chief Data Officer.

Quality issues might have a dramatic In order to maintain the same high- Product quality
impact on patient health and company quality standards applied worldwide and patient safety
reputation. To ensure quality, Sanofi must and comply with healthcare (pages 82-83)
therefore fullfill applicable statutory and regulations, Sanofi has a dedicated
regulatory requirements and: Quality global organization and
apply consistent standards to ensure harmonized quality management
RISKS RELATED quality of all our products and services system. Continuous quality monitoring
TO PRODUCT throughout their life cycle, from discovery and internal audits are carried out to
QUALITY to development, manufacturing and detect and remedy weaknesses as
distribution, for both established and early as possible and circulate best
innovative products; practices throughout the Company.
be ready for authorities’ inspections
on any site involved in the launch of new
products and the life cycle of marketed
products.

78
 RISK DESCRIPTION RISK MITIGATION IN THIS REPORT

The best way to gain and preserve Sanofi’s Code of Ethics delivers rules Business Ethics
stakeholders’ trust is to demonstrate to employees to act with personal (page 81)
ethics and integrity in day-to-day business integrity and in their interactions with
practices. Business ethics and employee Company stakeholders. A compliance
integrity are crucial to safeguard the officer network led by the Ethics and
RISKS RELATED Company’s image and reputation Business Integrity global team is in
TO BUSINESS and protect Sanofi employees. Sanofi place throughout the Company
ETHICS AND must comply with applicable laws and to ensure effective training and
EMPLOYEE regulations applicable in the jurisdictions education and to detect and remedy
INTEGRITY in which we operate, with pharmaceutical issues. Compliance helplines are
industry codes and with the Company’s available to raise any concerns
ethical principles, values and policies. employees may face with ethical
In order to achieve this, Sanofi disseminates principles and behaviors.
a robust and pervasive ethical culture at all
organizational levels.

As Sanofi conducts research designed A dedicated governance body Bioethics

to develop new healthcare solutions, chaired by the Head of Medical Affairs (page 84)
the Company develops and implements is in place.
ethical requirements to protect patients and Animal use in Sanofi activities
healthy volunteers and preserve the integrity is overseen by a Chief Veterinary
of scientific research. Sanofi also informs Officer reporting to the Head of
internal and external stakeholders about Corporate Social Responsibility.
RISKS RELATED
Sanofi’s position on the ethical implications Sanofi fully adheres to the 3Rs
TO MEDICAL
of biological research and applications. principles (Replacement, Reduction,
AND RESPECT
To this end, Sanofi establishes a common Refinement).
OF BIOETHICS
definition and framework for bioethics,
promotes a responsible bioethics culture Sanofi applies the Nagoya protocol
and anticipates and monitors emerging to guarantee fair access to and
bioethics issues that may arise. Sanofi strives sharing of benefits from genetic
to limit the use of animals and develops resources.
alternatives to animal use in scientific
research and production processes.

In order to preserve the trust of patients, A transversal working group involving Duty of Vigilance
stakeholders and communities and to Corporate Social Responsibility, Ethics (pages 86-87)
guarantee good working conditions for and Business Integrity, HSE, Industrial
employees, Sanofi must identify the nature Affairs, Legal and Procurement
RISKS RELATED and extent of potential human rights departments was created to achieve
TO HUMAN impacts throughout Company activities and timely, complete and accurate
RIGHTS across the supply chain. This is done in strict application of the duty of vigilance
ENFORCEMENT compliance with applicable international law. Sanofi monitors enforcement of
and local regulatory requirements related to human rights policies throughout the
respect for human rights of employees in all Company.
business operations and integrates respect
for human rights in public positions.

Contributing to environmental protection In order to minimize our environmental Fostering a healthy

is of significant importance for Sanofi. footprint, Sanofi implemented Planet
The Company is committed to closely and continuously upgrades a (pages 64 -69)
managing and reducing our environmental comprehensive HSE system, including Duty of Vigilance
RISKS RELATED
footprint (e.g., carbon emissions), ensuring a governance body to monitor HSE (pages 86-87)
TO
that products and waste are appropriately regulations applicable to products.
ENVIRONMENTAL
managed by internal teams and third The Company organizes internal and
PROTECTION
parties, anticipating potential business external campaigns such as World
discontinuity due to less available resources Environment Day in October 2017.
and adapting solutions to respond to the
effects of climate change on public health.

In order to secure sourcing and protect our CSR principles are embedded into a Duty of Vigilance
image and reputation, Sanofi must ensure holistic procurement risk management (pages 86-87)
that our suppliers share our CSR principles. approach and contribute to supplier
This encompasses respect for human CSR performance by monitoring and,
RISKS RELATED rights and labor practices, protection of if necessary, implementing corrective
TO RESPONSIBLE employee health and safety, preservation action plans.
PROCUREMENT of the environment and fighting against A Code of Conduct was developed
corruption, fraud and bribery. to require suppliers’ respect for
Sanofi’s CSR principles.

SANOFI 2017 INTEGRATED REPORT 79

OUR FUNDAMENTALS

Ensuring ethics and

MORE
> Sanofi.com/Science
and Innovation/
Clinical trials and

transparency results/Our
disclosure
commitments
> Sanofi.com/Science
and Innovation/
Scientific
publications
Ethics and transparency are at the where we operate. It is embodied in > Sanofi.com/Science
core of everything Sanofi does. This our dedication to protecting patients and Innovation/
Clinical trials and
commitment underlies our relationships and employees. It takes form in Sanofi’s results/Our data
with each of our stakeholders and approach to medical ethics and sharing
defines how we work on a daily basis. bioethics. Ethics and transparency commitments

It encompasses how Sanofi promotes are fundamental to building trust and,

and respects human rights in our therefore, to our ability to succeed in
business operations in all countries our mission of Empowering Life.

Ethics and transparency in our activities

SANOFI ETHICS AND TRANSPARENCY OUR KEY ACTIONS AND FIGURES

MEDICAL OTHER GLOBAL

R&D GBUs
FUNCTION FUNCTIONS

BUSINESS ETHICS
In this Report: Business Ethics
Ethical business practices in our activities and in our interactions page 81
with third parties

BIOETHICS

Protection of patient and study participants

Clinical trials design and conduct In this Report: Bioethics
Genetic resources pages 83-85
Human biosamples
New technologies
Animal ethics

TRANSPARENCY Public disclosure in 40 countries of our

interactions with healthcare professionals
Financial transparency towards healthcare and medical and scientific associations.
professionals, medical and scientific associations, We have been disclosing the amounts
healthcare organizations, patients associations we pay to patient associations based in
and patients advocates Europe since 2010 and in Australia, Brazil,
Protocol transparency Canada, the United States and Japan
Clinical data transparency since 2011.
Publication transparency Publication of clinical data: 48 clinical
Data sharing trials were registered and 105 clinical trial
results posted in 2017.
Number of scientific papers published
in 2017: 560 scientific and medical papers
sponsored or signed by Sanofi were
included in the PubMed database, which
referenced over 5,600 journals in 2017.
Sharing of clinical data: between January 1,
2014 and December 31, 2017, data sharing
was approved for 46 clinical trials.

80
Business ethics at Sanofi FACTSHEETS
> Ethics & Business
Doing the right thing, the right way at the right time Integrity
> Lobbying
and for the right reason > Sanofi internal
control and
processes
> Sanofi Internal Audit
OUR APPROACH
MORE
> Code of Ethics
A fundamental Sanofi objective BUSINESS ETHICS KEY PERFORMANCE > Anti-Bribery Policy
is to maintain a culture where the INDICATORS

willingness to do the right thing IN 2017, THE E&BI IN 2017,

DEPARTMENT HAS A TOTAL OF
and to comply with applicable RECEIVED
laws and Sanofi policies is fully
embedded across the organization. 838 96,598
EMPLOYEES FOLLOWED
Supported by all departments, the ALERTS ONE OR MORE OF OUR
38 TRAINING MODULES:
Ethics & Business Integrity (E&BI) A TOTAL OF
department is a cornerstone of
Sanofi ethical approach, supporting 245
CASES WERE
ANTI-CORRUPTION
TRAINING:
68,951 EMPLOYEES
the achievement of our business SUBSTANTIATED CODE OF ETHICS
objectives while ensuring an effective AND THERE WERE TRAINING:
150 DISMISSALS 27,647 EMPLOYEES
compliance program and promoting AND RESIGNATIONS
business ethical values in daily RELATED TO
MISCONDUCT
activities.

Our dedicated internal organization

A GLOBAL COMPLIANCE Providing strategic compliance leadership to the executive
OFFICER WITH A DOUBLE management team and the Board of Directors
REPORTING LINE TO Overseeing the effective implementation and management of the
THE GENERAL COUNSEL E&BI program
AND THE CEO

A NETWORK OF MORE Responsible for ensuring the core elements of the E&BI program and
THAN 130 COMPLIANCE working as designed in the assigned countries
OFFICERS Supporting the local business operations on a day-to-day basis

A COMPLIANCE Acting as liaisons by relaying and reinforcing compliance-related

CHAMPIONS NETWORK messages developed by E&BI
BASED ON EMPLOYEE Supporting E&BI initiatives
VOLUNTEERS IN EACH Following-up on mandatory trainings and assisting with real-time
COUNTRY/GBU/ monitoring
FUNCTION Serving as the point of contact for employees and facilitating
speaking up and promoting E&BI culture

AN EXECUTIVE Assessing, recommending and overseeing all initiatives aimed at

COMPLIANCE sustaining and improving the E&BI program, as well as fostering a
COMMITTEE CHAIRED permanent commitment to Sanofi core values (Teamwork, Courage,
BY SANOFI’S CEO Respect and Integrity)

ADDRESSING BUSINESS ETHICS to address questions regarding ethics-

CHALLENGES IN OUR DAILY related issues. Sanofi’s Code of Ethics
ACTIVITIES addresses 13 topics relating to ethical
matters and is supported by dedicated
To reinforce our business ethics culture, policies and procedures, such as an anti-
a formal company-wide Ethics & bribery policy, a policy on interactions
Business Integrity program has been with patients, patient advocates and
developed and implemented. This groups, and a policy on donations and
approach includes a dedicated other contributions. A robust internal
organizational structure, education and investigations process conducted by
training programs and a dedicated dedicated teams can recommend GRI 102-16
24/7 confidential Compliance Helpline corrective actions, if appropriate. GRI 205-2

SANOFI 2017 INTEGRATED REPORT 81

OUR FUNDAMENTALS

Our robust product quality

and patient safety approach
GUARANTEEING PRODUCT throughout the product life cycle,
QUALITY AT ALL STAGES in compliance with all applicable
regulatory requirements and the
Sanofi’s One Quality System application of the same high quality
ensures the quality of all our standards worldwide.
products throughout their life cycle
from discovery to development, A mature quality risk
manufacturing and distribution, management system
as well as the medical, clinical Quality risk management is an
and commercial activities for integral part of the Sanofi Quality
established and innovative products. Management System, enabling
effective decision-making and
building trust with regulatory
authorities. To help facilitate
continuous improvement of process
performance and product quality,
PRODUCT QUALITY KEY
PERFORMANCE INDICATORS Sanofi quality risk management
RECALLS: % OF RECALLS (FOR
approach is both reactive and
QUALITY REASONS) PER BATCH proactive:
RELEASED > EVOLUTION OVER
3 YEARS:
reactively, quality issues are
2015 = 0.34% handled in a timely and effective
2016 = 0.27%
2017 = manner with the necessary corrective
and preventive actions;
0.11% proactively, potential risks are
identified from both internal and
HEALTH AUTHORITIES
CONDUCTED external sources and necessary

302
REGULATORY INSPECTIONS
measures are implemented to prevent
negative impacts.
WITHIN SANOFI IN 2017 At a global level, quality risks
are consolidated, reported and

206
INTERNAL AUDITS WERE
monitored through the Quality Risk
Profile.
CONDUCTED IN 2017
Quality audit and regulatory
inspection readiness
A global quality policy The Global Quality Audit department
and dedicated organization is responsible for providing an
A Chief Quality Officer (CQO), accurate and independent
reporting to the CEO, is responsible assessment of the compliance of
for defining the Sanofi Quality policy, the operational units, sites, country
coordinating its implementation organizations and global functions
and ensuring compliance with the with the goal of achieving successful
related applicable regulatory and regulatory inspection outcomes and
Company requirements. The current securing GxP compliance through
version of this policy was published effective self-assessment. Sanofi
in September 2017. Sanofi Global operational units, sites and country
Quality unites all 9,000 employees organizations facilitate inspections
operating in the Company’s global requested by regulatory authorities.
quality functions, operational Global Quality Audit conducts due
quality units and Medical, Clinical diligence to assess the state of
and Country organizations. This compliance and associated risks to
framework ensures consistent Sanofi of proposed collaborations or
implementation of the Quality policy purchases of a product or company.

82
Quality across the entire safety of our products worldwide, FACTSHEETS
supply chain including prescription medicines, > Quality Management
system
Sanofi maintains the quality, security vaccines, consumer health > Pharmacovigilance:
and traceability of all our materials and products, generics, and medical Monitoring Product
products throughout their physical flows. devices. Among its many activities, Safety to Protect
Patients
To reduce the risk of fraud, falsification GPV assesses continuously the > Fighting falsified
and diversion, Sanofi adopts innovative risk/benefit profile of our products medical products
> Continuity of Activities
technological solutions to ensure at every stage of their life cycle in
and Supplies
traceability, identify fake products and order to determine, in close relation > Serialization –
secure the supply and distribution with the health authorities, the best Medicine
Identification,
chain. These include the use of tamper- conditions of their use, and provides Authentication and
evident packaging to assure the physicians, healthcare professionals Traceability
integrity of the packs, anti-counterfeit and patients with comprehensive,
MORE
security labels to authenticate our up-to-date, safety information, > Quality policy
products, and data matrix codes including potential risks associated > Global Quality
for serialization, which improve the with a product. manual
> Chapter 4 of the 2017
traceability and identification of our To maximize our knowledge about Registration
products. In addition, Sanofi has the use of our portfolio under real- document: 4.3.4.1.
a central anti-counterfeit laboratory life conditions, Sanofi has set up Quality and 4.3.4.2.
Pharmacovigilance
in Tours, France, dedicated to the an effective global organization to
analysis of medicines or products collect pharmacovigilance data
suspected of being counterfeit. from all sources of information. We
have established strong interactions
Promoting a quality culture with stakeholders worldwide
Within Sanofi, the quality culture is (i.e. patients and healthcare
critical for the successful execution professionals) during both clinical
of our business performance and development and product life
strategy. Sanofi’s Quality Academy cycle management in order to
promotes this culture through training maximize the completeness of
resources and fostering continuous our safety data collection process
learning and education. and the effectiveness of our safety
evaluations in compliance with all
applicable regulations and policies,
ENSURING THE SAFETY including stringent data privacy
OF PATIENTS protection rules. We also make
Sanofi’s Global Pharmacovigilance available safety information on our
(GPV) organization monitors the products through Sanofi websites.

Continuously fulfilling
and enhancing bioethics
Sanofi recognizes the importance In 2017, our actions included:
of defining, respecting and continuously improving and evolving the Informed
improving consistent and transparent Consent Form template to be used in
bioethical standards. Reporting directly clinical trials;
to the CEO, our Chief Medical Officer adapting our framework for evaluating
(CMO) chairs the Sanofi Bioethics the ethics of our clinical research studies;
Committee (BEC) and plays a key role working on the development of One
in supporting a transparent, patient- Company governance and solutions
focused company. The BEC determines to manage human biosamples;
Sanofi’s position on bioethics policies, fulfilling our commitment to
to ensure ethical conduct in clinical implement the Nagoya Protocol;
development involving patients and continuing to implement the 3Rs
healthy subjects. principles for animal use in research. GRI 416-1

SANOFI 2017 INTEGRATED REPORT 83

OUR FUNDAMENTALS

BIOETHICS IN OUR DAILY program covering clinical trials, FACTSHEETS

ACTIVITIES associated systems and any > Medical Ethics and
Bioethics
subcontractors involved in the > Animal Protection
Animal use in research conduct of trials. The aim is to obtain
MORE
The current consensus is that using assurance that the conduct of trials
> Chapter 4 of the 2017
animals for research and production complies with our quality standards Registration
is justified when there are clear and the applicable regulations, and document: 4.3.3.2.
benefits for human health and to continually improve our practices. Medical ethics and
bioethics
when the 3Rs principles (replacement, Our audit program is designed to > Sanofi Clinical Trials
reduction and refinement of animal cover trials conducted in various and Results website
use) are applied. Animals remain countries and regions all over the > Sanofi policy on the
protection of animals
a mandatory part of a comprehensive world. Sanofi is also subject to health > Compassionate Use of
research and testing strategy that authority inspections. None of the Sanofi Investigational
Products
also includes non-animal methods 101 inspections conducted on our
(such as computerized models and clinical research activities in 2017
in vitro testing) and clinical research. resulted in regulatory action.
Animal use is part of many regulatory
requirements. Transparency in clinical trials
Sanofi is committed to being
Clinical trials transparent about our medical
The purpose of clinical trials is to research and to providing healthcare
collect data about the efficacy and professionals and patients with
safety of our products in healthy all appropriate useful information
subjects and patients. They are about our development projects
mandatory for the approval process and products so that they can
for any new medicine and new make informed medical decisions.
indications. Sanofi organizes clinical This applies not just to information
trials throughout the world. provided in advance of clinical
When conducting clinical trials, trials, but also to the sharing of the
Sanofi applies international standards: data generated by those trials. In
the Declaration of Helsinki, the addition to core principles adopted
recommendations of the International by PhRMA and EFPIA members in July
Conference on Harmonization (ICH) 2013, a new policy on sharing and
and Good Clinical Practices (GCP). transparency of clinical data was
In addition, Sanofi complies with adopted by our BEC in 2017.
applicable national and international
rules and laws.

Improving and evolving

the Informed Consent
Form template to be BIOETHICS KEY
used in clinical trials PERFORMANCE
INDICATOR
Sanofi ensures that all participants
(or their legal representatives)
enrolled in clinical trials give their free
and informed consent. All related
101
INSPECTIONS WERE
CONDUCTED ON OUR
documents must provide participants CLINICAL RESEARCH
with exhaustive and easily ACTIVITIES IN 2017 AND
NONE OF THEM RESULTED
understandable information. Sanofi IN A REGULATORY ACTION.
teams use an internal reference
document to prepare informed
consent documents. It was revised at
26%
DECREASE IN ANIMALS
the end of 2017 to reflect new policies USED BY SANOFI OVER
THE LAST 4 YEARS
on “post-trial access to products
under development” and “accidental
discoveries” approved by the BEC.
Sanofi has for many years
implemented an internal audit

84
 Our stakeholders’
perspect ve
Sanofi Bioethics Committee
Sanofi Bioethics Committee (BEC), created in 2012, ensures that high ethical standards
are applied in research, clinical development and medical activities. In 2017, we
reviewed our bioethics governance to take greater account of our stakeholder
expectations and improve the transparency on our positions and BEC-related projects.
The main outcome was the decision to create a new board of independent bioethicists to
review Sanofi’s position on key bioethics questions and make recommendations.

“In 2017, we revised Sanofi’s bioethics

governance. The new organization of the
BEC enables views and knowledge within
the Group to be shared in formulating
common recommendations and positions.
Transparency has been improved by
providing intranet access, with employees
able to access bioethics information
internally, tracking topics of interest and
AUDE LE ROUX
HEAD OF MEDICAL ETHICS sharing questions. Ameet Nathwani, Chief
Medical Officer and chairman of the
Bioethics Committee, also communicated
to the Sanofi Executive Committee the
most important policies approved by the
BEC. Finally, we are increasing involvement
of external stakeholders.”
The following bioethics policies
were validated by Sanofi’s
Executive Committee in 2017:
> clinical data sharing and
transparency
> post-trial access to
investigational products
> incidental findings
> compassionate use

SANOFI 2017 INTEGRATED REPORT 85

OUR FUNDAMENTALS

Our Duty of Vigilance: an essential approach

to the sustainability of our business
As a health partner, protecting and encompasses employees, local
taking into account the needs of communities and the environment, and
patients requires a strong approach of responds to the requirements of French
vigilance, identifying and managing Corporate Duty of Vigilance Law for
risks for patients. Beyond the protection companies, their suppliers and direct
of patients, our vigilance approach subcontractors.

Our vigilance approach

ACTIVITIES OF DIRECT SUPPLIERS

SANOFI’S ACTIVITIES
AND SUBCONTRACTORS

Ensure that patients are safe

PATIENTS Protect the physical integrity of participants in clinical trials
Protect patients’ personal data

Safeguard the fundamental rights of employees

EMPLOYEES Provide the best workplace health and safety conditions
Protect employees’ personal data

Minimize environmental impacts and control the use of resources

ENVIRONMENT AND
LOCAL COMMUNITIES Combat biopiracy

VIGILANCE IN OUR OPERATIONS:

SANOFI’S RESPONSIBLE
SANOFI’S ORGANIZATION, POLICIES
PROCUREMENT APPROACH
AND CONTROL ENVIRONMENT

SUPPLIERS CODE OF CONDUCT SANOFI CODE OF ETHICS

Product Quality and Patient Safety – See page 82

Medical Ethics and Bioethics – See page 83
Respect of Human Rights – See Factsheet Fundamental Human Rights At Work, Factsheet Human Rights Due
Diligence, Factsheet Children’s Rights, Sanofi Guide Human Rights in our Activities
Health and Safety – See Factsheet Health and Safety in the Workplace
Personal data protection – See Factsheet Protection of personal data
Mitigation of environmental impacts (PIE and other impacts) – See page 64
Fighting Biopiracy/Implementation of the Nagoya Protocol – See Factsheet Biodiversity and Biopiracy

86
OUR RESPONSIBLE VIGILANCE IN OUR OPERATIONS MORE
PROCUREMENT APPROACH > Responsible
Procurement
Sanofi considers that being vigilant > Chapter 4 of the 2017
Our responsible procurement strategy about the consequences of our Registration
is an integral part of Sanofi’s supply activities on people and the document: 4.4
Vigilance Plan
chain. As Sanofi purchases each environment is a condition for the
year over €14.6 billion in goods and sustainability of our activities. Our
services, responsible procurement is organization, policies and control
a key issue in the vigilance process. environment are described in the
Our responsible procurement registration document “Document de
See Appendix 1
approach requires our suppliers to référence” and in publicly available
adhere to Sanofi’s commitments on factsheets.
human rights, health and safety and
the environment via the Suppliers
Code of Conduct and also specific
CSR evaluations of our suppliers.
This is backed up by our membership DUTY OF VIGILANCE KEY
PERFORMANCE INDICATORS
in industry initiatives, such as TfS
(Together for Sustainability) and SANOFI’S OPERATIONS
SANOFI’S HEALTH & SAFETY
PSCI (Pharmaceutical Supply Chain (H&S) TARGETS BY 2020:
Initiative) which enable us to pool TOTAL OCCUPATIONAL INJURY
supplier audits and other measures FREQUENCY
RATE – ANY EMPLOYEE: <2
to support suppliers. We carefully IN 2017
monitor not only the quality of raw
materials that go into making our
products, but also the practices of our
2.7
LOST TIME INJURY FREQUENCY
suppliers with whom we work closely RATE – ANY EMPLOYEE: <1.4
IN 2017
to make sure they are aware of the
economic, social and environmental
standards that are fundamental to us.
1.9
A three-step process is in place RESPONSIBLE PROCUREMENT
NUMBER OF SUPPLIER
throughout the Company to improve ASSESSMENTS SINCE 2012:
sustainability practices in the
supply chain, comprising supplier
risk assessment, evaluation and
1,049
IN 2017, THE NUMBER OF
development. SUPPLIERS ASSESSED WAS
In 2017, we reviewed this approach
to reflect the introduction of new 194
French legal requirements on the duty IN 2017, THE SUPPLIER AUDIT
of vigilance of parent companies PROGRAM COVERED
88 SUPPLIERS OF ACTIVE
and instructing companies; this PHARMACEUTICAL INGREDIENTS
included an overhaul of the (APIs) AND 70 CONTRACT
MANUFACTURING
supplier identification and scoring ORGANIZATIONS (CMOs)
methodology. A number of priority
actions were defined for 2018,
including a revision of the responses
required from buyers based on
suppliers’ risk scores (evaluations,
contractual stipulations, audits, etc.)
and amendments to the Suppliers
Code of Conduct. The aim is to
optimize and rationalize the way in
which different Sanofi departments
manage their suppliers by improving
coordination and sharing best GRI 102-9
practices. GRI 308-1
 GRI 407-1
 GRI 414-2

SANOFI 2017 INTEGRATED REPORT 87

APPENDIX 1

Appendix 1
Framework and standards Glossary
This second Integrated Report is
3Rs Replacement, reduction HR Human Resources
informed by the reference framework and refinement
H&S Health & Safety
published by the International AAI Access Accelerated Initiative
IDF International Diabetes
Integrated Reporting Council (IIRC). AFEP Association Française des Federation
Sanofi’s Integrated Report complies Entreprises Privées
IFPMA International Federation
with widely recognized international AGM Annual General Meeting of Pharmaceutical
standards: AMF Autorité des Marchés Manufacturer Associations
The Global Reporting Initiative (GRI): Financiers IIRC International Integrated
AMR Antimicrobial resistance Reporting Council
this report has been prepared in
ATM Access to Medicine IPV Inactivated Polio Vaccine
accordance with the GRI Standards:
BEC Bioethics Committee KiDS Kids and Diabetes in Schools
Core option.
LEEM Les Entreprises
The United Nations Global Compact BCR Binding Corporate Rules
du Médicament
(UNGC): Sanofi has embraced CDP Carbon Disclosure Project
LMICs Low- and Middle-Income
the fundamental principles of this CEO Chief Executive Officer Countries
platform since we became a member CER Constant Exchange Rate LT Long term
in 2000. CHC Consumer Healthcare MEDEF Mouvement des Entreprises
CMO Chief Medical Officer de France
Reporting process CS Constant Structure MMV Medicines for Malaria
and assurance Venture
CSR Corporate Social
This report covers the twelve months Responsibility NCD Non-communicable
disease
ending December 31, 2017. Some D&I Diversity & Inclusion
NGO Non-governmental
recent developments relating to our DJSI Dow Jones Sustainability organization
activities that took place in the period Index
NME New molecular entity
prior to our annual General Assembly DNDi Drugs For Neglected
Diseases initiative OPV Oral Polio Vaccine
on May 2, 2018 are also mentioned. OTC Over The Counter
E&BI Ethics and Business Integrity
We are confident in the overall PhRMA Pharmaceutical Research
EFPIA European Federation of
reliability of the data reported, but Pharmaceutical Industry and Manufacturers of
recognize that some of the information Association America
is subject to an element of uncertainty, EU European Union PIE Pharmaceuticals in the
Environment
inherent in limitations associated with E&S Environmental & Social
RAI2E Regional Artemisinin
measuring and calculating data. ESG Environment, social and resistance Initiative 2
Independent verification of CSR data: governance – Elimination
each year, the accuracy of our CSR ESPP Employee Stock Purchase R&D Research & Development
Plan
data is reviewed by independent SBTi Science Based Target
FAST Fight Against STigma Initiative
auditors. A list of quantitative
FDA Foo and Drug Administration
indicators, the reporting methodology SDG Sustainable Development
Fx Foreign Exchange Goal
and the limited assurance report of
FY Full Year SG&A Selling, General and
one of our Statutory Auditors can be
Administrative
found in the CSR Indicators Table and GAVI Global Alliance for Vaccine
and Immunization SPMSD Sanofi Pasteur MSD
Auditor’s Report Factsheet.
GBU Global Business Unit SRI Socially Responsible
Investment
GEM General Medicine and
Our other publications Emerging Markets TB Tuberculosis
Sanofi.com GHG Greenhouse gas UN United Nations
Our responsibility: Reports and GM General Manager UNGC United Nations Global
Factsheets Compact
GPEI Global Polio Eradication
Investors: Latest reports and Initiative UN SDGs United Nations Sustainable
publications at a glance Development Goals
GPV Global Pharmacovigilance
Form 20-F 2017 US United States of America
GRI Global Reporting Initiative
VP Vice President
GxP Good Practices
WHO World Health Organization
HSE Health Safety and
Environment
GRI 102-54

88
Our targets linked with Sustainable Development Goals
The table below illustrates Sanofi’s contribution to the United Nations Sustainable Development Goals.
It shows the alignment of our targets and performance with selected SDGs. When implementing our
responsibility strategy to improve access to healthcare and engage with communities, we focus on the
highest needs and where we can have the greatest impact. This approach is aligned with the SDGs, in
particular SDG 3: “Ensure healthy lives and promote well-being for all at all ages.” Our Human capital
strategy, Health and Safety policy and Planet Mobilization initiative also contribute to the SDGs.

PERFORMANCE
SDG TOPIC AMBITION TARGETS
2017
ACCESS TO HEALTHCARE
Communicable SDG 3.3: By 2030, end the Contribute to eliminate sleeping sickness
diseases epidemics of AIDS, tuberculosis, by 2020
malaria and neglected tropical Contribute to eradicate polio
p. 50
diseases and combat hepatitis,
water-borne diseases and other
communicable diseases
Non SDG 3.4: By 2030, -30% mortality from non-communicable diseases
communicable p. 51
diseases
COMMUNITIES
Maternal health SDG 3.1: By 2030, reduce the global maternal mortality ratio to less than 70 per
100,000 live births
Newborn health SDG 3.2: By 2030, end preventable deaths of newborns and children under 5 years
of age, with all countries aiming to reduce neonatal mortality to at least as low as
12 per 1,000 live births and under-5 mortality to at least as low as 25 per 1,000 live births
Education SDG 4.1: By 2030, ensure that all girls and boys complete free, equitable and
quality primary and secondary education leading to relevant and effective p. 63
learning outcomes

Social, SDG 10.2: .By 2030, empower and promote the social, economic and political
economic inclusion of all, irrespective of age, sex, disability, race, ethnicity, origin, religion
and political or economic or other status
inclusion

HUMAN CAPITAL
Achieve gender SDG 5.5: Ensure women’s full end Achieving a balanced representation
equality and effective participation and equal of men and women within its senior leaders
empower all opportunities for leadership at all by 2025 p. 59
women and levels of decision making in political,
girls economic and public life
HEALTH & SAFETY IN THE WORKPLACE
Decent work SDG 8.8: Protect labor rights and Occupational injury frequency rate – any
promote safe and secure working employee: < 2 by 2020
p. 87
environments of all workers Lost time injury frequency rate – any
employee: <1,4 by 2020

HEALTHY PLANET
Carbon Reaching carbon neutrality Implement internal carbon pricing by 2020
footprint in our operations Reduce greenhouse gas (GHG) emissions
by 50% by 2025 (compared to 2015) p. 67
Reach carbon neutrality in operations by
2050
Water Managing water sustainably in our Reduce water consumption by 10% by
activities 2020 (compared to 2015)
Track, manage and optimize water use
for 100% of Sanofi sites by 2025, based on p. 68
a comprehensive knowledge of the source
of water supply, with a specific focus on
water scarcity areas
PIE Handling Pharmaceuticals Incorporate PIE management into
In the Environment (PIE) the development and management of
products, the assessment and improvement
p. 69
of manufacturing activities and the
promotion of appropriate use of medicines
within 100% of our activities by 2025

SANOFI 2017 INTEGRATED REPORT 89

APPENDIX 2

Appendix 2 - GRI Content index

Factsheets in our documents center

2017 Integrated Report
2017 Chapter 4 of the “Document de référence”
(Registration Document – Audited by independent third party)
2017 Form 20-F
Code of Ethics
Weblink or e-mail address
Other publications in the documents center:
Policies, Reference documents & Brochures

GRI STANDARDS SOURCE OMISSION

GRI 101: Foundation 2016
GRI 102: General Disclosures 2016
Organizational profile
102-1 Name of the organization Core Front cover
Activities, brands, products,
102-2 Core p. 2-3 Company’s profile
and services
102-3 Location of headquarters Core Back cover

p. 2-3 Company’s profile

102-4 Location of operations Core Tax Policy: Our Geographical Footprint

Item 4 B.6. Markets

102-5 Ownership and legal form Core Item 4 A/History and Development of the Company

p. 2-3 Company’s profile

102-6 Markets served Core
Item 4 B/Business overview

102-7 Scale of the organization Core p. 2-3 Company’s profile

Information on employees Section 4.1.1. Employment

102-8 and Core
other workers CSR Indicators Table and Auditor’s Report: Communities
Section 4.3.6. Subcontracting and suppliers
Section 4.4. Vigilance Plan
102-9 Supply chain Core p. 38 Value distribution
p. 86-87 Duty of vigilance
Responsible Procurement: strategic approach
Notes to the consolidated financial statements –
Significant changes to the D.1. Exchange of the animal health business
102-10 organization and its supply Core D.2. Changes in the scope of consolidation due to acquisitions
chain and divestments
G/Events subsequent to December 31, 2017
Precautionary Principle or
102-11 Core Risk Management
approach
Section 4.3.5. Initiatives to support human rights

102-12 External initiatives Core p. 35 Extra-Financial scores

United Nations Global Compact: Sanofi Communication on
Progress & Attestation of External Assessment
102-13 Membership of associations Core Stakeholder Engagement

GRI 102-55

90
 GRI STANDARDS SOURCE OMISSION
Strategy
Statement from senior
102-14 Core p. 4 CEO’s editorial
decision-maker
Ethics and integrity
p. 5 Editorial

p. 81 Business ethics at Sanofi

Code of Ethics: Message from the CEO

Values, principles, standards,
102-16 Core HSE management system
and norms of behavior
Quality management system

Risk Management

Sanofi Social Charter

Governance
p. 72-76 Governance

102-18 Governance structure Core Corporate Governance

Item 6
Stakeholder engagement
102-40 List of stakeholder groups Core Stakeholder Engagement
Collective bargaining
102-41 Core Section 4.1.2. Social Dialogue
agreements
Sanofi’s CSR Materiality, Strategy & Governance
Identifying and selecting
102-42 Core
stakeholders
Stakeholder engagement

p. 24 Fostering Stakeholder Dialogue

Approach to stakeholder
102-43 Core Sanofi’s CSR Materiality, Strategy & Governance
engagement
Stakeholder engagement

Section 4.3.1. Dialogue with stakeholders

Key topics and concerns
102-44 Core
raised
Stakeholder engagement
Reporting practice
Entities included in the
Notes to consolidated financial statements – F/List of principal
102-45 consolidated financial Core
companies included in the consolidation during 2017
statements
p. 27 Topic boundaries
Defining report content and p. 28 Report content
102-46 Core
topic Boundaries
Section 4.5. How corporate social responsibility
information is reported: methodological note
p. 27 Our Material Topics
102-47 List of material topics Core
Sanofi’s CSR Materiality, Strategy & Governance
Section 4.5. How corporate social responsibility information
102-48 Restatements of information Core
is reported: methodological note
Section 4.5. How corporate social responsibility information
102-49 Changes in reporting Core
is reported: methodological note
Section 4.5. How corporate social responsibility information
102-50 Reporting period Core
is reported: methodological note
sanofi.com/en/investors/reports -and-publications/
102-51 Date of most recent report Core
financial-and-csr-reports
102-52 Reporting cycle Core Annually
Contact point for questions
102-53 Core [email protected]
regarding the report
Claims of reporting in
102-54 accordance with the GRI Core p. 88 Framework and standards
Standards

SANOFI 2017 INTEGRATED REPORT 91

APPENDIX 2

GRI STANDARDS SOURCE OMISSION

102-55 GRI content index Core p. 90 GRI Content index

102-56 External assurance Core 4.6. Report by independent third party

MATERIAL TOPICS
GRI 103: Management Approach 2016 - The following three standards apply to each of our material topics listed below
Explanation of the material Explanation of our material topics and their boundaries are
103-1 Material
topic and its Boundary presented on p.27 Our Material Topics. A correspondance
The management approach table of all material topics and the documents in which the
103-2 Material information can be found, is presented on p.28.
and its components
Evaluation of the
103-3 Material Section 4.6 Report by independent third party
management approach
Economic
GRI 203: Indirect Economic Impacts 2016
p.50 Our access to healthcare programs in our fields of expertise
Infrastructure investments
203-1 Material
and services supported
Section 4.3.2. Access to healthcare programs
GRI 205: Anti-corruption 2016
p. 77 Risk management

Section 4.3.3.1.1. Fighting corruption

Operations assessed for risks
205-1 Material
related to corruption
Item 3 D. Risk factors – Risks relating to legal and regulatory matters

Anti-bribery Policy

p. 81 Business ethics
Communication and training
205-2 about anti-corruption policies Material Ethics & Business Integrity: VI. Training and Educational Programs
and procedures
Section 4.3.3.1.1. Fighting corruption

Item 8 – Information on Legal or Arbitration Proceedings

Confirmed incidents of
205-3 Material
corruption and actions taken
Ethics & Business Integrity: alerts management
Environmental
GRI 302: Energy 2016
Section 4.2.3.2. Carbon Footprint
Energy consumption within
302-1 Material CSR Indicators Table and Auditor’s report: Healthy Planet – Energy
the organization
Carbon Footprint: Greenhouse Gas Emissions related to scope 1 & 2
Energy consumption outside CSR Indicators Table and Auditor’s report: Healthy Planet –
302-2 Material
of the organization Scope 3 emissions
p. 67 Reducing our Greenhouse Gas footprint
Reduction of energy
302-4 Material Section 4.2.3.1. Planet Mobilization roadmap
consumption
CSR Indicators Table and Auditor’s report: Healthy Planet – Energy
Reductions in energy
302-5 requirements of products Material Packaging
and services
GRI 303: Water 2016
CSR Indicators Table and Auditor’s report: Healthy Planet – Water
303-1 Water withdrawal by source Material
Water Management

Water sources significantly CSR Indicators Table and Auditor’s report: Healthy Planet – Water
303-2 affected by withdrawal of Material
water Water management

303-3 Water recycled and reused Material Section 4.2.3.3. Water

GRI 305: Emissions 2016
Carbon Footprint: Greenhouse Gas Emissions related to scope 1 & 2
Direct (Scope 1) GHG
305-1 Material
emissions CSR Indicators Table and Auditor’s report: Healthy Planet –
CO2 emissions – Scope 1 & 2

92
 GRI STANDARDS SOURCE OMISSION
Carbon Footprint: Greenhouse Gas Emissions related
Energy indirect (Scope 2) to scope 1 & 2
305-2 Material
GHG emissions CSR Indicators Table and Auditor’s report: Healthy Planet –
CO2 emissions - Scope 1 & 2

Carbon Footprint: Greenhouse Gas Emissions related to Scope 3

Other indirect (Scope 3)
305-3 Material
GHG emissions CSR Indicators Table and Auditor’s report: Healthy Planet –
CO2 emissions - Scope 3

p. 67 Reducing our Greenhouse Gas footprint

305-5 Reduction of GHG emissions Material Section 4.2.3.2. Carbon Footprint

Transporting medicines and vaccines

Emissions of ozone-depleting CSR Indicators Table and Auditor’s report: Healthy Planet –
305-6 Material
substances (ODS) Emissions to air
Section 4.2.3.2.3. Optimization of the use of solvents and control
Nitrogen oxides (NOX), over emissions of volatile organic compounds
sulfur oxides (SOX), CSR Indicators Table and Auditor’s report: Healthy Planet –
305-7 Material
and other significant air Emissions to air
emissions
Protection of the Atmosphere

GRI 306: Effluents and Waste 2016

p. 69 Handling pharmaceuticals in the environment

Water bodies affected by Section 4.2.3.3. Water

306-5 water discharges and/or Material
runoff CSR Indicators Table and Auditor’s report: Healthy Planet – Waste
water discharge

Pharmaceuticals in the Environment

GRI 308: Supplier Environmental Assessment 2016

p. 86-87 Duty of vigilance
New suppliers that
CSR Indicators Table and Auditor’s report: Ethics & Transparency
308-1 were screened using Material
– Responsible Procurement
environmental criteria
Responsible Procurement: Integration of CSR in our supply chain
risk assessment
Negative environmental
Responsible Procurement: Our Responsible Procurement
308-2 impacts in the supply chain Material
Collaborative Platform for suppliers’ evaluation
and actions taken
Social
GRI 403: Occupational Health and Safety 2016
Workers representation in
formal joint management–
403-1 Material Section 4.2.2. Information on health and safety in the workplace
worker health and safety
committees
Types of injury and rates
Health and Safety in the Workplace
of injury, occupational
403-2 diseases, lost days, and Material
absenteeism, and number of CSR Indicators Table and Auditor’s report: Occupational Health
work-related fatalities & Safety
Workers with high incidence
403-3 or high risk of diseases related Material Health and Safety in the Workplace
to their occupation
Health and safety topics
403-4 covered in formal agreements Material Section 4.1.2.1.1. Social Dialogue in France
with trade unions
GRI 405: Diversity and Equal Opportunity 2016
p. 59 Gender Balance

p. 73 Governance
Diversity of governance
405-1 Material
bodies and employees CSR Indicators Table and Auditor’s report: Proportion of female
employees

Corporate Governance

SANOFI 2017 INTEGRATED REPORT 93

APPENDIX 2

GRI STANDARDS SOURCE OMISSION

GRI 407: Freedom of Association and Collective Bargaining 2016
p. 86-87 Duty of vigilance
Operations and suppliers in Section 4.4. Vigilance plan
which the right to freedom
407-1 Material
of association and collective Fundamental Human Rights at work
bargaining may be at risk
Responsible Procurement: Sanofi Procurement Risk
Management Model
GRI 408: Child Labor 2016
Operations and suppliers at
408-1 significant risk for incidents Material Children’s Rights
of child labor
GRI 409: Forced or Compulsory Labor 2016
Human rights due diligence
Operations and suppliers
409-1 at significant risk for incidents Material Fundamental Human Rights at work
of forced or compulsory labor
Brochure Human Rights in our activities
GRI 413: Local Communities 2016
p. 63 Communities
Operations with local
Local Social Impact
community engagement,
413-1 Material
impact assessments,
Employee Volunteering
and development programs
External CSR Awards

p. 69 Handling Pharmaceuticals in the environment

Operations with significant
413-2 actual and potential negative Material Section 4.2.3.4. Pharmaceuticals products in the environment
impacts on local communities
Item 3 – D. Risk Factors – Environmental Risks of our Industrial
Activities
GRI 414: Supplier Social Assessment 2016
New suppliers that were Responsible Procurement: Integration of CSR in our supply chain
414-1 Material
screened using social criteria risk assessment
Negative social impacts in the p. 86-87 Duty of vigilance
414-2 supply chain and actions Material
taken Section 4.4. Vigilance plan
GRI 416: Customer Health and Safety 2016
p. 82-83 Product quality and patient safety

Section 4.3.4 Patient Safety

Medical Ethics and bioethics

Assessment of the health and Implementation of REACH regulation

416-1 safety impacts of product and Material
service categories Quality Management System

Serialization

Fighting falsified medical products

Pharmacovigilance

Incidents of non-compliance
concerning the health and
416-2 Material Item 8 - Information on Legal or Arbitration Proceedings
safety impacts of products
and services

94
Forward-Looking Statements
This Integrated Report contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995, as amended.
Forward looking statements are statements that are not historical facts. These statements include projections and estimates and their
underlying assumptions, statements regarding plans, objectives, intentions and expectations with respect to future financial results, events,
operations, services, product development and potential, and statements regarding future performance. Forward-looking statements
are generally identified by the words “expects”, “anticipates”, “believes”, “intends”, “estimates”, “plans” and similar expressions. Although
Sanofi’s management believes that the expectations reflected in such forward-looking statements are reasonable, investors are cautioned
that forward-looking information and statements are subject to various risks and uncertainties, many of which are difficult to predict and
generally beyond the control of Sanofi, that could cause actual results and developments to differ materially from those expressed in, or
implied or projected by, the forward-looking information and statements. These risks and uncertainties include among other things, the
uncertainties inherent in research and development, future clinical data and analysis, including post marketing, decisions by regulatory
authorities, such as the FDA or the EMA, regarding whether and when to approve any drug, device or biological application that may be
filed for any such product candidates as well as their decisions regarding labelling and other matters that could affect the availability or
commercial potential of such product candidates, the absence of guarantee that the product candidates if approved will be commer-
cially successful, the future approval and commercial success of therapeutic alternatives, Sanofi’s ability to benefit from external growth
opportunities and/or obtain regulatory clearances, risks associated with intellectual property and any related pending or future litigation
and the ultimate outcome of such litigation, trends in exchange rates and prevailing interest rates, volatile economic conditions, the impact
of cost containment initiatives and subsequent changes thereto, the average number of shares outstanding as well as those discussed
or identified in the public filings with the SEC and the AMF made by Sanofi, including those listed under “Risk Factors” and “Cautionary
Statement Regarding Forward-Looking Statements” in Sanofi’s Annual Report on Form 20-F for the year ended December 31, 2017. Other than
as required by applicable law, Sanofi does not undertake any obligation to update or revise any forward-looking information or statements.

The content of this report was developed with the support of .

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