2016 INTEGRATED REPORT

CONTENTS TABLE
—
1. Introduction 4. Governance
1.1 Sanofi’s integrated approach p. 1 4.1 A
 n international and diversified
1.2 Company profile p. 2 shareholder base p. 17
1.3 Overview of value created by Sanofi p. 3 4.2 An active and engaged Board of Directors p. 17
1.4 Message from the CEO p. 4 4.3 A closely aligned Board and Executive team p. 18
4.4 A
 proactive and structured risk management
2. Challenges and Opportunities approach p. 19
2.1 Medicine in a changing world p. 6 4.5 Stakeholder engagement p. 22

3. Business Model and Strategy 5. Performance

3.1 Value chain p. 8 5.1 Strategic roadmap progress p. 23
3.2 Strategic roadmap p. 9 5.2 Solid financial performance p. 28
3.3 F ive Global Business Units p. 10 5.3 CSR performance p. 31
3.4 R
 &D and Industrial Affairs p. 13 5.3.1 Ethics and Transparency p. 32
3.5 Finance p. 14 5.3.2 Access to Healthcare for the Underserved p. 39
3.6 CSR strategy p. 15 5.3.3 Engage with Communities p. 44
5.3.4 Healthy Planet p. 49

About this report

Glossary p. 54

Appendices
Global Reporting Initiative GRI-G4 content index p. 56

Using this report

• SECTION TABS • UN SDG • RELATED CONTENT IN THIS REPORT:
Use the section tabs These labels refer to the United Use the underlined navigation
on the right side of each page Nations Sustainable Development throughout the report to access
to navigate between sections. Goals (UN SDGs) covered related information elsewhere
For instance: by actions and initiatives led in this report online.
by Sanofi and mentioned
in the CSR performance
• CONTENT PAGE section of this report. • MORE
Use the section headings For instance: Wherever you see this symbol,
above to navigate to the relevant visit our website: www.sanofi.com,
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For instance: 1. Introduction download_center/download_
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examples of value created by
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For instance: T
 1.1 Sanofi’s integrated approach:
a company-wide strategic focus
—
1

This first 2016 Integrated Report linking sustainability performance ethics and transparency, contributing
presents Sanofi’s strategic roadmap to business results. This report highlights to access to healthcare for
on sustainable value creation. our strategy in line with our market the underserved, engaging with 2
It contains information about our vision, anticipating a shift towards communities and addressing
market outlook, our value chain and preventive, predictive, personalized environmental challenges.
the events relating to our activities and participatory medicine, and We believe that both are essential
that took place in 2016, as well the strong alignment of the strategies to creating financial and
as major events in early 2017. of our Global Business Units and non-financial value.  The following
We seek ways of demonstrating Functions with the Company roadmap. chart is not only a guide to navigation
our contribution to the major Our strategic roadmap is completed through the different sections of
challenges and key issues by our CSR ambition which is the report. It also explains the links
3
that Sanofi must address today, based on four pillars: upholding between each element.

CHALLENGES AND OPPORTUNITIES

Health-related trends General and civil society trends
High unmet Exciting prospects 3
medical needs for innovation
Empowered patients Stakeholders’ expectations
Business challenges CSR challenges
Increasing demands on Affordability Ecosystem Environmental
New medical paradigm
healthcare companies and safety sustainability footprint

5
GOVERNANCE

Board and Executive Committee Risk management Stakeholder engagement

BUSINESS MODEL AND STRATEGY

Strategic roadmap
Sustain innovation Deliver outstanding Simplify the Engage and develop
Reshape the portfolio
in R&D launches organization people

CSR Ethics and Transparency

Access to Healthcare Engage with
Healthy Planet
Ambition for the Underserved Communities

Organization

General Medicines & Diabetes & Consumer

Sanofi Genzyme Sanofi Pasteur
Emerging Markets Cardiovascular Healthcare

Global functions: R&D, Industrial Affairs, Medical Affairs, Quality, Legal, Ethics & Business Integrity, Health,
Safety and Environment, Human Resources, Finance, External Affairs, Sanofi Business Services…

PERFORMANCE
Value Creation
Access to
Economic Financial Social Trust Environmental
Healthcare
EC F S T EN
ATH

G4-18

1 — SANOFI
1. Introduction

1.2 Company profile

Sanofi, a global healthcare leader,

—
is committed to preventing
and treating diseases and supporting
people around the world.

€33.8 bn
More than Present

100,000
in more than

employees in the world 100

countries
net sales (1)

Diabetes &
Cardiovascular

Sanofi
Sanofi Genzyme
Pasteur RARE DISEASES
MULTIPLE SCLEROSIS
VACCINES
Our IMMUNOLOGY
ONCOLOGY
5 Global
Business
Units

General
Medicine
& Emerging
Markets Consumer
GENERICS Healthcare
ESTABLISHED
PRESCRIPTION
PRODUCTS

(1) Following the closing of the business swap with Boehringer Ingelheim (BI), which consisted
of an exchange of Sanofi’s Animal Health business and BI’s Consumer Healthcare business,
those figures are presented excluding Animal Health business.

G4-4 G4-6

More:
>S
 anofi’s Commitment and
Contribution to the UN Sustainable
Development Goals Factsheet
G4 -15

2 — SANOFI
 1.3 Overview of value created by Sanofi
—
Through the execution of our strategy and daily activities, we contribute to create shared value for
1

both the Company and our stakeholders, always mindful of our impact on the communities
in which we operate. The indicators below show the different nature of value created, in terms
of economic, financial, access to healthcare, trust, social and environmental value.
2

Value creation

Approximately 40,000 3
EC 83 industrial sites industrial employees and more In total, 1,217,900
Economic in 37 countries 16,000 employees
than
jobs worldwide supported
indirectly by Sanofi
committed to 46 R&D projects

F Business net income(1)

€2.96 R&D expenses represent
3
Financial €7,308 M dividend/share for 2016 15.3% of sales
More than 1 bn
doses
Sanofi is a member of

ATH
More than 241million of vaccines produced in 2016,
the Access Accelerated
Initiative (AAI) towards
beneficiaries of our Access to for the immunization of
Access to the UN Sustainable
Healthcare
Healthcare programs in
more than 500 million Development Goals target
more than 90 countries people worldwide against for reducing premature 5
20 serious diseases deaths from NCDs by 2030

180 An occupational accident

42% women members
Over submissions
S rate with lost time was stable
Social of the Sanofi Board from more than 40
countries compared to 2015, with
for the 2016 Sanofi CSR Awards a frequency rate of 1.7(2)

Over 190,000 ethics Sanofi Bioethics Committee, International stakeholder

panel, gathering over
T and business integrity ensuring ethical conduct
Trust training modules followed by in our clinical development 40 representatives from
Sanofi employees worldwide programs the civil society

19.4% reduction
EN
in scopes 1 and 2 CO2
13.6% energy consumption 18.3% reduction
emissions (excluding in water consumption
Environmental decrease compared to 2010
emissions from sales forces compared to 2010
vehicles) compared to 2010

(1) See definition under section “A.1.5. Segment information – 3/ Business Net Income” of Sanofi 2016 20-F Report.
(2) Excluding Merial. The number of accidents with lost time equal or superior to one day over a twelve month period relative to a million hours. Home to workplace accidents for
non-mobile employees are not included. However, these accidents are included for travelling sales staff, in line with reporting rules. The 2015 results were recalculated on the basis of the
Company’s end-2016 structure for the purposes of the comparison.

G4-6 G4-8 G4-56 G4-SO1 G4-EN15 G4-EN16

Related content on this report:

> Performance
> GRI indicators
More:
>O n our website: http://en.sanofi.com/company/sanofi-at-a-glance/sanofi-at-a-glance.aspx
> CSR Indicators table and Auditor’s report Factsheet

3 — SANOFI
1. Introduction

1.4 Message from the CEO

—
In 2016, we made strong progress on our 2020 strategic roadmap, as we transform
into an agile and innovative global pharmaceutical leader serving the needs
of patients worldwide. Our work in dynamic franchises – such as rare diseases,
multiple sclerosis, and vaccines – and our performance in emerging markets
enabled us to achieve solid financial results.

We believe that sustainability is business and that business is sustainability.

We consider Corporate Social Responsibility (CSR) to be both a catalyst and
a contributor to new and evolving business models. In this, our first integrated
report, we emphasize our approach to integrated thinking within our organization
and discuss how, by breaking down silos, Sanofi creates value over time for
its diverse stakeholders.

One of our key priorities is access to healthcare for underserved populations.

To that end, we are a founding partner of the Access Accelerated Initiative,
an international coalition launched to address the burden of non-communicable
diseases in lower income countries, with a goal of reducing premature deaths
from those diseases by one third by 2030. Thanks to our longstanding commitment,
we are closer than ever to achieving the eradication of polio and elimination
of sleeping sickness and lymphatic filariosis. Furthermore, we are pursuing
innovative efforts in the treatment of malaria and tuberculosis.

Our commitment to CSR is also illustrated by our longstanding adhesion to the

United Nations Global Compact as well as our contribution to the achievement
of the United Nations Sustainable Development Goals.

I would like to extend my warmest thanks to our shareholders for their support and
confidence in Sanofi’s leadership, and to our employees for their firm engagement.

Olivier Brandicourt,
Chief Executive Officer, Sanofi

May 2017

4 — SANOFI
 1

“Sanofi is a founding partner

of the Access Accelerated
Initiative, which is committed
to addressing the burden of
non-communicable diseases.”

G4-1

5 — SANOFI
2. Challenges and Opportunities

2.1 Medicine in a changing world

Trends transforming the pharmaceutical industry

—
Far-reaching changes are reshaping today’s society. The advance of climate change, the new demands
of an ageing population or the digital revolution all bring challenges, but also opportunities. Together, these
megatrends are transforming the pharmaceutical industry and driving a new approach to medicine, an
approach in which patients, healthcare professionals and Sanofi are forging a new collaborative relationship.

1. General trends

1.1 Growing and ageing 1.3 Environmental 1.5 Income wealth

population issues/pollution disparity
•8
 .5 billion people by 2020, •9
 8% of cities in low- and •8
 9% of all global assets owned
10 billion by 2050. middle-income countries with by the wealthiest top 10%.
Source: UN, World Population Prospect, 2015. more than 100,000 inhabitants Source: The Global Wealth Report 2016,
Crédit Suisse.
•4 00 million seniors in BRICM do not meet WHO air quality
(Brazil, Russia, India, China limits. 1.6 Digitization
and Mexico) in 2017 Source: WHO, Global Urban Ambient
Air Pollution Database (update 2016). and technological
(vs 220 million in 2014). breakthrough
• 2 billion children by 2020. 1.4 Climate change •2
 0.8 billion connected objects
• F rom 0.3 to 4.8 degrees Celsius: in use worldwide by 2020
1.2 Urbanization
•6
 6% of the world’s population the forecasted rise of (4.9 billion in 2015).
urban by 2050 (30% in 1950). temperature over the next Source: Gartner, 2015.

Source: UN, Report on World Urbanization, 2014.

century, depending •B
 y 2020, an entire generation
on the amount of greenhouse will have grown up in a primarily
gas emissions generated by digital world.
human activity. Source: PWC, “Digitization for economic growth
Source: The Intergovernmental Panel and job creation”, 2013.
on Climate Change (IPCC), fifth Assessment
Report, 2013.

2. Civil society trends

2.1 Call for transparency 2.2 Willingness to

and ethics co-construct and be
•M
 ore than 25% of a involved in communities
company’s market value
is directly attributable to its
reputation.
Source: World Economic Forum, 2012.

Related content on this report:

> 3.1 Value chain
> 3.2 Strategic roadmap
> 4.4 A proactive and structured risk
management approach

6 — SANOFI
 1

3. Health-related trends 3
3.1 Unmet medical needs 3.2 Exciting prospects 3.3 Empowered patients
remaining high for innovation Patients around the world, including
New and emerging healthcare issues New science is opening possibilities: a growing middle class in emerging
raise new challenges. Longer genomics is beginning to fulfill its markets, are demanding better care,
lifespans, climate change, pollution promises, immuno-oncology is empowered by access to new
and changing lifestyles all contribute transforming cancer treatments, big information. Physicians are no longer
3
to the spread of chronic and data is generating new insights into the only health influencers: digital
infectious diseases. Many remain disease, and digital is transforming technology and the social media
uncontrolled or undiagnosed, in care delivery. Digital technology is have led to an era of health
particular non-communicable also driving stronger engagement “consumerism” in which blogs by
diseases. Diabetes may become the with patients and connected digital opinion leaders and the rise of
next pandemic, with 80% of patients healthcare solutions in prevention, patient advocacy organizations are
in emerging countries. diagnosis and monitoring of diseases. changing perceptions of mainstream
Source: International Diabetes Federation, Diabetes
atlas, 2013.
It is also opening the door to new medicine. 5
business models.
In addition, at least one third of the
world’s population has no regular
access to medicines and closing the
health access gap between and
within countries is a key challenge.
Source: WHO, The World Medicines Situation Report,
2011.

4. Business challenges

4.1 Increasing demands In parallel, competition is ever 4.2 new medical paradigm
on healthcare companies stronger, with new competitors We are moving from a world in which
People are demanding affordable entering from other sectors and the medicine was used to treat symptoms
universal health coverage and rise of new partnerships. Biosimilars to a world in which healthcare
requiring more transparency leading are now part of the competitive professionals can anticipate and
to relevant regulations. Pricing is also landscape in both the US and even take action before diseases
under pressure: the rising burden of Europe. affect patients. The sequencing of the
healthcare costs means politicians, human genome, biotechnology and
patients and payers want more value the digital revolution offer tremendous
from innovation, affordable drugs and prospects for tomorrow’s medical
new access models. landscape: preventive, predictive,
personalized and participatory.

7 — SANOFI
3. Business Model and Strategy

3.1 Value chain

—
In step with the ongoing paradigm shift in healthcare, Sanofi puts the patient at the heart of all we do.
We aim at defining adapted business models and building collaborations, supporting patients as
their health needs change. It is this approach that has helped make us a global healthcare leader.

A patient-focused value chain

Process conducted by Sanofi
Process under Sanofi’s extended
responsibility

Manufacturing

Towards a Distributing
predictive
Raw materials personalized
and supplies
participatory
preventive
medicine

Our global Our global

business units functions
–General medicines –R&D
& Emerging Markets –Industrial Affairs
–Diabetes & Cardiovascular –Medical Affairs
R&D –Sanofi Genzyme –Quality Sales
–Sanofi Pasteur –Health, Safety & Environment
–Consumer Healthcare –Human Resources
–Finance
–External Affairs
–Sanofi Business Services
–Legal/E&BI

Patient care

Product
disposal

G4-12

8 — SANOFI
 3.2 Strategic roadmap:
setting a course for leadership 1

—
Our 2020 strategic roadmap is designed to ensure we compete and deliver sustainable value in a market shaped
by increased demands and a new medical paradigm. Based on five pillars, this roadmap has been fully
operational since 2016. It is the reference for the entire Company, generating action plans for all functions and units. 2

1. Reshape the portfolio 3. Sustain innovation 5. Engage and

Guiding principles: in R&D develop people
• Sustain our leadership in therapeutic
areas where we are strong and well • Continued strengthening of the R&D • Maximize organizational effectiveness
3
positioned; portfolio • Develop employees’ skills for growth
• Build competitive positions in areas • Enhancing existing collaborations • Develop Sanofi leaders
with strong growth potential; and strengthening of external • Evolve Sanofi culture
• Explore strategic options in business innovation capacities with a single vision and a common
segments that are not considered > We aim to increase our R&D set of core values: Teamwork,
core to our strategy. investments up to €6 billion annually Courage, Respect and Integrity.
by 2020. 3

2. Deliver outstanding 4. Simplify

launches the organization
• Growth notably driven by the launch • Implementation of 5 Global Business
of new medicines and vaccines Units (GBU) supported in their 5
> 6 major launches between 2015 and activities by global functions
2017 • Evolution of our industrial sites network
• Expected cost reduction
> We are committed to deliver at least
€1.5 billion cost savings by 2018.

Sanofi’s new organization

5G
GLOBAL
LO BUSINESS UNITS

DIABETES GENERAL MEDICINES SANOFI GENZYME SANOFI PASTEUR CONSUMER

& CARDIOVASCULAR & EMERGING MARKETS (Specialty Care) (Vaccines) HEALTHCARE

INDUSTRIAL RESEARCH
AFFAIRS & DEVELOPMENT

FINANCE HUMAN
GLOBALIZED RESOURCES
FUNCTIONS
=
Accountability,
efficiency BUSINESS
LEGAL/E&BI DEVELOPMENT
and excellence
& STRATEGY

MEDICAL EXTERNAL
AFFAIRS
SANOFI
BUSINESS
SERVICES
G4-4 G4-9 G4-13

Related content on this report: > 3.5 Finance More:

> 3.3 Five Global Business Units > 5.1 Strategic roadmap progress > 2016 Form 20-F – Item 4.B Business
> 3.4 R&D and Industrial Affairs > 5.3.3 Engage with Communities overview

9 — SANOFI

1704233_SANOFI_RAI_GB.indd 9 29/06/2017 11:46

3. Business Model and Strategy

3.3 Five Global Business Units:

a new organizational structure aligned
with the strategic roadmap

Since 2016, the creation of Sanofi’s

— General Medicines & Emerging Markets (GEM)
five GBUs has ensured the 2016 sales: €14.5 billion i.e. 42.9% of company sales
Company’s business activities are Activities
closely aligned with its strategic
roadmap: Portfolio –In Mature Markets (MM): Established Prescription Products(1) and Generics
–In Emerging Markets (EM): full Sanofi portfolio: EPP and Generics, Products
• General Medicines & Emerging for Diabetes, Cardiovascular diseases, Specialty Care medicines
Markets comprises all of Sanofi’s –Health management solutions in line with increasing focus on the
products in emerging markets, “beyond-the-pill” approach
excluding Vaccines and
Consumer Healthcare products.
It commercializes all Established Market ranking –In EM: #1 in Rare Diseases, #2 in Diabetes with a 27% market share, #3 in EPP
Prescription Products (EPP) and –Worldwide: #4 in EPP and #1 in the EU5 (France, Germany, Italy, Spain and
Generics worldwide; the UK) and JPAC (Japan and Pacific) regions
• Diabetes & Cardiovascular; Strengths –Strong historical leadership and footprint (commercial and industrial)
• Sanofi Genzyme (Specialty Care in Emerging Markets
–Strong brand loyalty, especially in Emerging Markets
medicines addressing rare –Extensive pipeline across therapeutic areas
diseases, multiple sclerosis (MS),
immunology and oncology);
• Sanofi Pasteur for vaccines; and
• Consumer Healthcare
(established as a GBU in January
Market analysis
2017).
The specific characteristics and Market –MM: limited growth perspectives, stable markets
trends of each market inform the characteristics –EM: higher growth perspectives, high volatility
way overall strategy is executed
by each GBU to create value for
the Company as a whole.

Market-specific –Localization: governments in EM conditioning market access

trends on technology transfer and local production
–Biosimilars/Generics and price are intensifying pressure on EPP and
Diabetes

Implementation of the strategic roadmap

–In EM: strengthen leadership in

1
• EPP and Generics, Diabetes through Toujeo® and other launches
Reshape • Specialty Care through enhanced access and portfolio expansion
the portfolio –In MM: maximize value through optimum resource allocation and
increasing multichannel customer engagement; planned divestment
of Generics in Europe

­–In EM: selectively deliver Specialty Care, Diabetes & Cardiovascular

2
launches, build strong market access capabilities and collaborate
Deliver outstanding with healthcare systems
launches –In MM, improve portfolio with selected product development and product
range enhancement

–Worldwide: simultaneous global development

3
–In EM: conduct clinical trials for potential introduction of innovations and
Sustain innovation enhanced patient access
in R&D

–New structure with 3 stronger centralized franchises focusing on target

4
countries:
Simplify • Diabetes & Cardiovascular EM
the organization • Sanofi Genzyme EM
• Global EPP and Generics

(1) Established Prescription Products comprise mature products including Plavix®, Lovenox®, Aprovel®, Renagel® and Renvela®.

G4-8

10 — SANOFI
 1

Diabetes & Cardiovascular Sanofi Genzyme 2

2016 sales: €6.4 billion i.e. 18.9% of company sales 2016 sales: €5.0 billion i.e. 14.8% of company sales

–Lantus®, a leading brand in insulin –20 treatments approved in several countries, focused on Specialty
–Soliqua®/Suliqua®, a new fixed-ratio combination basal insulin and Care medicines: rare diseases, multiple sclerosis (MS), oncology and
GLP-1 product for type 2 diabetes patients uncontrolled on basal immunology
insulin
–Praluent®, an innovative PCSK9 inhibitor for adults with heterozygous
familial hypercholesterolemia or atherosclerotic heart problems, 3
who need additional lowering of LDL cholesterol
–Multaq®, an antiarrhythmic drug in atrial fibrillation

–Sanofi Diabetes ranked #2 worldwide by sales in 2016 –Leading position in rare diseases
–Rapidly growing MS franchise

–Strong heritage and long-term collaborations in Diabetes –Patient-driven, science-led approach

& Cardiovascular –Proven ability to execute in specialized disease areas
–In-depth insights on changing needs of all stakeholders, including –Products that make a significant difference for patients
patients, healthcare professionals and payers –Ability to create disease awareness and provide support to ensure the right
3
–Science and technology-based solutions for superior outcomes for patient gets access to the medicine he or she needs
all stakeholders
–Onduo, a joint venture with Verily (former Google Life Sciences)
engaged in the development of holistic solutions to improve diabetes
management by bringing together technology and medication

–Increased spend on diabetes and cardiovascular diseases, #1 global –Specialty treatments for debilitating diseases that are often difficult to
causes of death and disability diagnose and treat 5
–Diabetes is #2 fastest-growing market behind Oncology with 8% –Significant unmet needs and limited treatment options for patients, including
annual growth from 2016 to 2022 in rare diseases and atopic dermatitis
–Significant growth opportunities with yet undiagnosed rare diseases and
increasing competition in treatment of patients in highly competitive
markets for MS and rheumatoid arthritis treatments

–Growing impact of diabetes and cardiovascular disease –Ongoing pressure on drug prices globally
on healthcare systems, society and economic productivity –Growth in the rheumatoid arthritis market set to be driven by a new class of
–Insulin pricing: under increasing scrutiny, in particular in the US drugs, including Kevzara®
–Diabetes management: increasing shift from glucose control via –Developing market for atopic dermatitis treatments being defined by
connected devices and associated software Dupixent®

–Continue to provide a comprehensive portfolio to a diverse patient –Rebuild a competitive position in oncology
population –Build position as new entrant in immunology
–Explore opportunities to expand Cardiovascular portfolio
–Lead the shift to disease management, empowering patients
to improve disease management and outcomes

–Continue to drive growth for Toujeo® (new insulin glargine –Launch Dupixent® for atopic dermatitis in the US following FDA approval
formulation) March 2017. Approval in EU expected late 2017
–Enhance access to Praluent® for patients requiring this innovative –Launch Kevzara® for rheumatoid arthritis in the US in line with scheduled
therapy calendar Q2 2017. Approval in EU expected mid-2017
–Execution of our regulatory activities to support the Soliqua®/
Suliqua® launch

–Our efforts in innovation focus on effective treatment approaches –Support substantial rare disease pipeline, expanded through external
in diabetes research collaborations
–Sanofi’s integrated care model goes beyond the pill, combining –Continue focus on innovation in MS and unmet needs in progressive MS
medicines, services, devices and data management to help patients –Build pipeline of potential immuno-oncology treatments through internal
to take care of their health research and collaborations
–Pursue clinical trials in immunology, expand indications for dupilumab

–Two global franchises: –Launch of Sanofi Genzyme in 2016: consolidation of oncology and
• Diabetes immunology with rare diseases and MS in the Specialty Care GBU
• Cardiovascular

G4-8

11 — SANOFI
3. Business Model and Strategy

Sanofi Pasteur Consumer Healthcare (CHC)

2016 sales: €4.6 billion i.e. 13.5% of company sales 2016 sales: €3.3 billion i.e. 9.9% of company sales
Activities

Portfolio –Vaccines in five therapeutic areas: pediatric, influenza, Four main OTC (over the counter) medication categories:
adult and adolescent booster, meningitis, travel and –Allergy, cough and cold
endemic –Pain care
–Digestive health
–Nutritionals

Market ranking –#4 on global vaccines market –Market share: 4.4% in 2016
–Leading positions in influenza, pediatric combination –Ranked in Top 3 among CHC players: #1 in digestive
vaccines and meningitis health, #2 in pain care, #3 in nutritionals and #6 in cough
and cold, allergy care (combined Sanofi and Boehringer
Ingelheim)

Strengths –€1 million invested in R&D every day –Extensive geographical presence
–Collaborations accounting for 60% of current pipeline –Complementary brands
–Proven expertise in switches from prescribed medication
to OTC

Market analysis

Market –Concentrated €27 billion market with limited number –Fragmented €109 billion global market with recent
characteristics of players, due to significant entry barriers consolidation
–Buoyant growth perspectives (estimated minimum 5% –Consistent mid-single digit market growth, forecast
per year for the next 5 years), driven by innovation & to continue at 4.1% (2016-2021)
product differentiation –Sustainable revenue streams with lasting high-value brand
equity with no post-patent sales material dip

Market specific –Non-delivery of essential vaccines to one in five children –Increased consumer health awareness and
trends –Rise in reluctance to vaccinate self-medication trend
–High public health value: 3 million lives saved worldwide –Potential of OTC to stem increasing healthcare costs
each year and $44 saved for every $1 spent recognized by governments/insurance companies
–Safety and efficacy of OTC products supported by retailers
and pharmacists
–More affordable access to CHC through switch of trusted
medications to OTC, with flexible pricing and support from
pharmacists

Implementation of the strategic roadmap

–Focus on higher value and innovative products –Successful completion on January 1, 2017 of swap of
1
–Reallocate funding to secure and expand franchises, such Sanofi’s Animal Health and Boehringer Ingelheim’s CHC
Reshape as influenza and pediatric combination vaccines businesses
the portfolio –Reduce manufacturing and regulatory complexity of –Post-integration of the Boehringer Ingelheim business gives
portfolio us a stronger portfolio in key categories with
–Establish direct presence in Europe following end of joint complementary brands and strengthens our geographical
venture with MSD presence

–Launch Dengvaxia® and public health programs

2
–Commercialization of polyvalent vaccines e.g. Hexaxim®,
Deliver outstanding Adacel®, Vaxigrip Tetra®, Fluzone® high-dose in countries
launches outside North America
–Increase population coverage of influenza vaccines
–Drive development of novel and best-in-class vaccines
3 –Definition of post-swap CHC strategic roadmap now
e.g. Clostridium Difficile, respiratory syncytial virus and Zika
Sustain innovation being investigated underway to deliver a distinctive growth model designed
–Deliver late-stage high value life cycle management to ensure delivery of consumer-driven, expert recommended
in R&D innovation in the four strategic categories of digestive
products e.g. improved influenza and meningitis vaccines
–Pursue entry and development of early stage key strategic health, pain, nutritionals and allergy, cough & cold
global vaccines

–New work organization implemented at strategic French

4
industrial sites
Simplify the –Development of talent pool and strategic workforce
organization planning

G4-8 G4-23

Related content on this report:

> 5.1 Strategic roadmap progress

12 — SANOFI
 3.4 R&D and Industrial Affairs:
global functions focused on the strategy
—
1

At Sanofi, our key global functions are fully aligned with our strategic roadmap.
This central focus means firm support for our GBUs as they create value and drives highly
effective execution in R&D and Industrial Affairs, at every level, from global teams to countries. 2

R&D Industrial Affairs

Activities
3
Areas of expertise –Sanofi has strong R&D expertise and experience in areas, such as –Manufacturing
diabetes, cardiovascular, vaccines and rare diseases. We are also –Supply chain
building competitive positions and expertise in multiple sclerosis, –Health, safety and environment (HSE)
oncology and immunology –Quality

Strengths –Global R&D organization with simplified structure: Research, –Shared industrial excellence culture,
Development, Specialized Scientific Platforms and Operations, and enshrined in the Sanofi Manufacturing
Global Regulatory each providing expertise and resources to support System, with focus on patient needs,
the project portfolio throughout the R&D value chain high quality and customer service
–Robust launch pipeline with 13 drug launches between 2012-2017 –Balanced internal production and
–Focused development portfolio (46 projects in development) targeting outsourcing 3
areas where we have the potential to become the leader and where –Key competencies and expertise inside
there is great unmet patient need the Company
–Partnerships and collaborations accounting for >50% of development –Healthcare solutions available in
portfolio 170 countries
–83 industrial sites in 37 countries

Implementation of the strategic roadmap

Deliver a balanced pipeline focused on GBUs priorities: –Strengthen bio-injectable capabilities

1
–Sustain leadership: diabetes, cardiovascular, vaccines and rare diseases;
–Build competitive positions: multiple sclerosis, oncology and immunology;
–Pursue investments and innovation
to prepare our future and remain
5
Reshape
the portfolio –Capture breakthrough opportunities: neurodegenerative diseases and at leading edge of technology
infectious diseases;
–Portfolio moved towards biologics (>50% biologics).
–Focus on 6 major launches to drive future growth: Toujeo®, –Ensure successful submissions and
2
Soliqua®/Suliqua®, Praluent®, Dengvaxia®, Dupixent®, Kevzara® launches while maintaining a very high
Deliver outstanding –Launch of immunology franchise with Dupixent® (dupilumab) and level of quality and competitiveness
launches Kevzara® (sarilumab) across our diversified and refocused
product portfolio

After transforming our development activities, we are now focused –Deliver Industrial Affairs performance
3
on the ‘R’ in R&D with the following goals: –Pursue our performance journey and
Sustain innovation –Accelerate the discovery of innovative medicines; strive for manufacturing excellence to
in R&D –Increase our research productivity and the effectiveness of our execution; build competitive positions in strategic
–Establish a dynamic early-stage pipeline that is geared toward; areas
optimizing value for patients and built for sustainability. –Contribute through our Devices strategy
to developing more patient-centric
We plan to achieve this through: drug delivery systems and design
–Fostering scientific excellence to achieve breakthrough multi-target integrated connected care solutions
or combination therapies to treat diseases;
–Reinforcing translational medicine to improve understanding of human
biology and disease mechanisms;
–Maximizing project probability of success and decreasing cycle times;
–Leveraging collaborations, new ways of working and digital
technologies; and
–Recruiting new leadership talent.

–Organization focused on seven therapeutic areas aligned with GBUs –Continue to adapt the Industrial Affairs
4
–Simplified governance with improved cross-functional integration organization in support of our new
Simplify business models aligning the industrial
the organization operations and network and improving
competitiveness via new technologies

G4-8

Related content on this report:

> 5.1 Strategic roadmap progress
> 5.3.1 Ethics and Transparency
> 5.3.4 Healthy Planet

13 — SANOFI
3. Business Model and Strategy

3.5 Finance:
serving Sanofi’s strategy
—
Sanofi’s Finance function aims to be a trusted world-class team driving value creation for
the Company and its stakeholders. Agile and flexible, it ensures that the Company has the financial
resources required to implement its strategy and that those resources are properly used.
It also provides consistent, useful and reliable information to stakeholders.

Activities

Areas of expertise –Build relationships with the investors and lenders (shareholders, banks, financial markets…) that provide financing
for the Company’s activities
–Prepare and track the budgets to allocate the financial means required to implement Company’s strategy

Strengths –Build trust by providing appropriate information to the financial community about our past, present and future
performance

Implementation of the strategic roadmap

1 –Anticipate and prepare for major changes and transactions to stay at the leading edge of technology evolution
through investments and innovation
Reshape –Give a clear picture of Sanofi’s financial performance following portfolio reorganization
the portfolio

2 –Partner across the value chain, through resource allocation and investment plans review, to enable the delivery
of outstanding launches
Deliver outstanding
launches

3 –Help prioritize and allocate resources to projects with the most significant scientific and medical value

Sustain innovation
in R&D

4 –Alignment of financial structure with Sanofi’s new organization: from country to GBUs and function-based approach
–Harmonization and automatization of financial tools to facilitate decision-making and investment choices
Simplify
the organization

Related content on this report:

> 5.2 Finance

14 — SANOFI
 3.6 CSR strategy:
key assets in creating value
—
1

CSR is an integral part of Sanofi’s core business strategy. By building a pragmatic and innovative approach
to meet today’s CSR challenges, it contributes to value creation and improving our business.
2
Defining our CSR priorities: were identified along with other of our materiality analyses and
stakeholders have their say material issues to include on Sanofi’s dialogue process. It identifies our most
Sanofi’s CSR ambition is based on our CSR agenda for the coming years: material issues in line with the main
new business priorities and in-depth access to healthcare, pricing market trends and highlights the inputs
stakeholder dialogue. We have and innovation, ethics in R&D and of our 2016 consultation cycle.
a longstanding experience in the investment choices and territorial This updated CSR strategy confirms our
realization of materiality assessments footprint of the Company. We also set renewed commitment to contributing
3
which are based on a robust up internal working groups, consisting to the major CSR challenges our world
methodology aligned with sustainability of GBUs and Global Functions faces, by focusing on four pillars, relying
standards, such as GRI4. These representatives, to enable us to build on our Ethics and Transparency, at the
evaluations have been performed a shared vision of the Company’s CSR core of everything we do:
through a formalized stakeholders’ priorities. This approach as a whole has •C ontributing to Access to Healthcare
engagement process, starting in 2010, shown a consistency of opinion among for the Underserved;
enriched in 2013 with over 100 internal both internal and external stakeholders •D eveloping our Communities with the 3
and external stakeholders, and focused and a strong correlation with the most aim of creating a more inclusive and
on environmental topics in 2015. material issues for pharma identified by sustainable ecosystem and engaging
In 2016, we also relied on the multiple the CSR rating agencies. our employees for future generations;
skills of our international stakeholder •E nsuring that environmental
panel, gathering over 40 external Materiality at the core considerations are part of our
stakeholders from around the world, our new CSR strategy decision-making process.
to bring their insights in the update of The following table presents our new
our CSR roadmap. Four priority topics CSR strategy, capitalizing on the results 5

2016 most material topics

Material issues Link with market trends Link with our CSR ambition
Access to healthcare
• Medicine pricing and innovation • High unmet medical needs
• Capacity building • Increased pressure on health
• Intellectual property companies
Business, medical & bioethics
• Bioethics • Exciting prospects for innovation
• Investment choices in R&D • Empowered patients
• Business ethics • Call for transparency and ethics
Local economic footprint
• Socio-economic issues • Willingness to co-construct and
• Stakeholder dialogue be involved

Patient safety
• Product quality • Increased pressure on health
• Anti-counterfeit initiatives companies
• Pharmacovigilance • Call for transparency and ethics
Talent development
• Talent development • A new medical paradigm
• Digitization and technological
rupture
Environmental footprint
• Carbon emissions • Climate change
• Waste management • Environmental issues/pollution
• Water management including
pharmaceuticals in the environment (PIE)
• Awareness on climate change impact
on health

G4-19 G4-20 G4-21 G4-25 G4-26 G4-27

15 — SANOFI
3. Business Model and Strategy

Our CSR governance with them to develop action plans A CSR Cross-functional strategy
to address Sanofi’s specific Committee (CCC) was set up in 2017
The Sanofi Board considers issues challenges and improve our business to identify projects or topics that need
related to the Company’s strategy, in performance. It also coordinates to be discussed at the Executive
line with its concern for the interests of our CSR recognition by investors, Committee level. It is co-chaired by the
shareholders and other stakeholders, rating agencies or shareholders. Chief Medical Officer, the Executive
and CSR issues. To foster creativity in each of our CSR Vice-President Human Resources and
The CSR team coordinates major focus areas, we have developed the Head of External Affairs, each
initiatives and helps ensure the the Sanofi CSR Awards to identify member of the Executive Committee,
Company meets its objectives. and reward Sanofi teams’ best and its Secretary is the Head of CSR. The
It also raises awareness of key issues, projects. In 2016, we received over Committee represents Sanofi GBUs and
promotes best practices and keeps 180 submissions from more than the Global Communications, Industrial
stakeholders informed, engaging 40 countries. Affairs and Medical functions.

Our CSR ambition

CONTRIBUTING TO ACCESS DEVELOPING OUR COMMUNITIES

TO HEALTHCARE AND EMPLOYEES ENGAGEMENT
• Foster access to healthcare • Sustain ecosystems around Sanofi’s sites
for underserved patients • Develop and engage employees
ACCESS TO
HEALTHCARE ENGAGE
FOR THE WITH
UNDERSERVED COMMUNITIES

ETHICS AND
TRANSPARENCY

UPHOLDING ETHICS AND ADDRESSING ENVIRONMENTAL

TRANSPARENCY CHALLENGES
• Manage our activities with • Reduce CO2 emissions
ethics and business integrity HEALTHY PLANET • Reduce waste
• Protect patient safety • Streamline water use and drug residues
• Ensure medical ethics and bioethics • Increase awareness of climate change
• Promote and respect human rights and its consequences on health

Sanofi recognitions • Dow Jones Sustainability Index (DJSI) • CDP Climate change: Score A – Level
Sanofi is listed in Paris (EURONEXT: SAN) World (Bronze Class) and Europe: “Leadership”;
and in New York (NYSE: SNY). Sanofi reference index in sustainable • CDP Water: Score B – Level
shares are included in the main French, development; “Management”.
European and US indices, in particular: • FTSE4Good (Financial Times Stock In 2016, Sanofi achieved the UN Global
CAC 40, Dow Jones Euro Stoxx 50, MSCI Exchange); Compact Advanced Level for its 2015 CSR
Pan-Euro Index, NYSE International 100, • Access to Medicine Index (ATM); Reporting, www.unglobalcompact.org.
rewarding the Company’s financial • Stoxx® Global ESG Leaders indices. The information in this report offers
performance. Sanofi is also included in In 2016, Sanofi was ranked among the top an update on our implementation
the main non-financial rating indices, three CSR performers in the pharma sector of the ten UNGC principles.
recognizing our CSR performance: by the rating agencies Oekom and MSCI
and obtained the following CDP scores:

G4-26 G4-27

Related content on this report: More:

> 4.5 Stakeholder engagement > CSR Strategy, Governance and
> 5.3.1 Ethics and Transparency Materiality Factsheet G4 -18
> 5.3.2 Access to Healthcare G4 -19 G4 -20 G4 -21 G4 -24
for the Underserved G4 -27 G4 -56
> 5.3.3 Engage with Communities > External CSR Awards Received
> 5.3.4 Healthy Planet Factsheet G4 -DMA G4 -SO1

16 — SANOFI
4. Governance

A company shaped by robust,

1
ethical governance
At Sanofi, strong, transparent governance is in our DNA. Our Board and Executive team build a strategy
that is closely linked with the needs of patients and society in a changing world. Our risk management system
is essential to our operations, allowing us to pursue our ambitious strategic roadmap and remain
fully compliant at all times. We are committed to engaging with shareholders and other stakeholders, 2
and put people, Ethics and Transparency at the heart of all we do.

4.1 An international and diversified

shareholder base
—
3

Sanofi’s shareholders are diverse, well Shares by geographic origin as of December 31, 2016
balanced, and international, and include
employees, evidence of Sanofi’s concern
4
to connect them with its performance.
2.5%
SWITZERLAND
VALUE CREATED

3.3%
T Individual shareholders,

including employees, hold 7.3% GERMANY

3.5%
REST OF THE WORLD
of Sanofi shares.
3.7%
Sanofi respects high standards ASIA
of corporate governance 5
7.2%
As a company governed by French law, REST OF EUROPE 33.5%
Sanofi’s practices comply with the FRANCE
French Commercial Code and the
recommendations of the Corporate 13.2%
Governance Code of the Association UNITED KINGDOM
Française des Entreprises Privées, of the
Mouvement des Entreprises de France
(AFEP-MEDEF Code) and of the AMF
(the French Financial Market Authority). 33.1%
UNITED STATES

4.2 An active and engaged

Board of Directors
—
The Board’s core mission is to set Sanofi’s strategic direction. With full separation of the functions of Chairman
and CEO, the Company’s corporate governance framework supports oversight and accountability
and the Board is evaluated annually, including a formal independent evaluation in 2015. It is composed of
14 members, 11 of whom are independent, following the appointment of Melanie Lee and Bernard Charlès
at the 2017 Annual General Meeting (AGM, 2017/05/10) and the departure of Bonnie Bassler.

G4-15

More:
> Shareholding Structure: http://en.sanofi.com/investors/
share/shareholding_structure/shareholding_structure.aspx
T : Trust

17 — SANOFI
4. Gouvernance

A diverse, experienced Key governance improvement over 4 specialized advisory committees

Board of global thought the past three years support the Board’s decision-making
and business leaders • 2016: improvement of the composition • Audit Committee
Key topics on the Board agenda of the Board: more scientific and • Compensation Committee
in 2016 pharmaceutical expertise, more •A ppointments and Governance
•R eview of significant proposed non-French and women, younger, Committee
alliances, acquisitions and strategic yet experienced, directors. • Strategy Committee
opportunities. •2 017: implementation of the new
•P resentations by key Sanofi managers legal French requirement regarding
on their Business Units: Vaccines and say on pay.
Diabetes in the US, and the Diabetes
franchise. Diverse skills and experience
to support value creation
Key figures Recent appointments mean enhanced
•1 0 meetings – high attendance rate scientific, pharmaceutical and digital
>92%. expertise, gender balance and
•7 5% independent members(1). international and cross-generational
• 42% women (level reached ahead representation:
of the 2017 deadline). •S  cientific background: 5 directors
• 6 nationalities. •H  ealthcare/pharma experience: 5
• Articles of Association modified to •P  ublic company CEO: 4
allow appointment of 2 employee •P  ublic company board: 7
representatives as directors. •G  lobal business: 8
•M  erger & acquisition: 7
• F inance/Accounting: 4
(1) Under French corporate governance standards. •G  overnment/Regulatory: 5

4.3 A closely aligned Board

and Executive team
—
In 2016, Sanofi reorganized its Executive Committee to support its 2020 strategic roadmap and reinforce strategic thinking and
leadership. Together, its members bring a unique mix of skills and experience, and their individual expertise, knowledge and
international background make it a highly effective body. The Executive Committee assists the CEO in guiding and controlling
the business overall. It also ensures communication and coordination between GBUs, Global Functions and the Board.

CEO
Olivier Brandicourt
French

EXECUTIVE COMMITTEE MEMBERS

Olivier Charmeil Peter Guenter David Loew Alan Main David Meeker(2)
Executive VP and General Executive VP, Diabetes Executive VP Executive VP Executive VP
Manager, General Medicines & Cardiovascular Sanofi Pasteur Consumer Healthcare Sanofi Genzyme
& Emerging Markets Belgian Swiss UK US
French
Jérôme Contamine Karen Linehan Philippe Luscan Muzammil Mansuri Ameet Nathwani
Executive VP Executive VP, Legal Affairs Executive VP Executive VP Executive VP
Chief Financial Officer and General Counsel Global Industrial Affairs Strategy and Business Medical Affairs
French US & Irish French Development UK
UK & US
Roberto Pucci Kathleen Tregoning Elias Zerhouni
Executive VP Executive VP President, Global Research
Human Resources External Affairs and Development
Italian & Swiss US US

(2) David Meeker until June 30, 2017 and Bill Sibold from July 1, 2017.

G4-34

More:
> Presentation of the Board of Directors on Sanofi’s website: > 2016 Form 20-F – Item 6 Directors, Senior Management
http://en.sanofi.com/investors/corporate_governance/ and Employees
board_directors/board_directors.aspx > Corporate Governance Factsheet G4  -34 G4 -56
> Sanofi governance: http://en.sanofi.com/company/
governance/governance.aspx

18 — SANOFI
 4.4 A proactive and structured risk
management approach
—
1

At Sanofi, we have measured and understood the importance of robust risk management,
key to achieving our strategy and effectively driving our business performance and so fulfilling
our commitments to patients, employees and other businesses.
2

Managing risks framework. It identifies and assesses Sanofi faces the challenges of a
across the Company risk areas for which detailed fast-changing business environment,
Sanofi is committed to anticipating and mitigation plans must be formally increasing volatile economic conditions,
managing the risks and opportunities defined and executed. The monitoring new stakeholder expectations, and the
that may impact its strategy and short, status of these plans, handled by risk rise of new technologies. To enable a
medium and long term objectives. owners, is regularly reported to Risk holistic view of the drivers shaping the
3
A robust risk management framework Committee members; risk landscape, our risk approach also
supports the alignment and integration • t he global risk management team includes the identification of emerging
of all risk management activities, to establishes and maintains Sanofi’s risk trends, identified via internal and
ensure: profile, contributes to monitoring the external sources.
•a  ccountability and competency follow-up of mitigation plans with
in managing risks across risk owners and risk leaders; VALUE CREATED
the organization; • t he risk management network T Risk management identifies 4
•e  ffective, relevant, and timely across all Global Business Units and potential threats and opportunities,
exchange of information with internal Global Functions is responsible for allowing Sanofi to make appropriate
and external stakeholders; establishing and enriching risk profiles decisions to protect the Company’s
• t hat decision-making processes are for their scope and ensuring assets in the long term.
adapted to risk exposure; and the synergy of top-down and
• that risk owners and governing bodies bottom-up approaches.
are provided with all relevant Sanofi’s risk management approach
information to conduct their activities. relies on a comprehensive process that 5
G4-14
In addition, Sanofi relies on a dedicated includes risk identification, analysis,
organization: evaluation and prioritization. This More:
• t he Sanofi Risk Committee brings process ensures assessments are >P
 resentation of the Company’s
together senior leaders of the comparable and improves our ability governance on Sanofi’s website:
Company and assists the Executive to consolidate risk areas identified. http://en.sanofi.com/investors/
Committee in fulfilling its corporate corporate_governance/corporate_
governance.aspx
governance by implementing an
>R
 isk Management Factsheet
Enterprise Risk Management

Risk management system

STRATEGIC PLANNING

KEY STRATEGIC OBJECTIVES STRATEGIC RISKS

CSR PRIORITIES RISK REPORTING

EMERGING RISKS
SANOFI
RISK PROFILE RESPONSE PLANS
MEGATRENDS

OPERATIONAL RISKS
FROM BUSINESS UNITS
AND FUNCTIONS RISK MONITORING

Risk identification Risk assessment Risk monitoring and reporting

T : Trust

19 — SANOFI
4. Gouvernance

Main risks and opportunities

The following table describes the main risk areas Sanofi is facing and the mitigating
actions implemented. Linked to the underlying megatrends affecting our business
and activities, these risks may impact our strategic pillars and CSR priorities.

Risk description Risk mitigation

Launch readiness To satisfy unmet medical needs, bring – Streamlined launch process from proof
innovation to the market, and drive its of concept to marketing
and execution future growth, Sanofi is engaged in an – Anticipation of market access conditions
ambitious new products launch program – Allocation of appropriate company
(6 major launches between 2015 and 2017). resources
To maximize chances of success in a highly – Timely escalation process to address
competitive environment and prevent potential delays
potential delays, Sanofi shall ensure the
readiness of all teams and sites involved,
and closely monitor launch performance.

Megatrends Strategic Pillar CSR Priority

Unmet medical needs Deliver outstanding launches Access to Healthcare
Innovation Simplify the organization for the Underserved
Empowered patients

Pricing and market access Due to rising overall healthcare costs, payers –P
 ricing policy, pricing models and value
are implementing pricing and market explanations for our products
access controls, such as reference pricing, –R
 eal-world evidence and health
formularies, and generic substitution. In order economics data
to anticipate drastic measures, systematic –P
 ricing models adapted to emerging
price reductions and exclusions from markets
reimbursement, Sanofi shall optimize its
pricing policy and deliver all necessary
supporting evidence and ensure affordability
for patients in emerging markets.

Megatrends Strategic Pillar CSR Priority

Income wealth disparity Deliver outstanding launches Access to Healthcare
Call for transparency and ethics Reshape the portfolio for the Underserved
Increased demands on healthcare
companies Ethics and Transparency

Product quality and safety Patient safety is an absolute priority. Any –D  edicated global organizations (Quality,
quality or safety issue may have adverse Pharmacovigilance and Epidemiology)
impact on patient health and Sanofi’s –G  overnance body dedicated to benefit/
reputation and “license to operate”. Sanofi is risk assessment
therefore committed to providing safe and – Harmonized quality management system
effective products worldwide, in full –S  ame high quality standards applied
compliance with statutory and regulatory worldwide
requirements. Sanofi constantly evaluates – Continuous quality and safety monitoring
and monitors the risks potentially associated and periodic internal audits
with the use of its products and their benefit/
risk profile over their entire life cycle.

Megatrends Strategic Pillar CSR Priority

Call for transparency and ethics Deliver outstanding launches Access to Healthcare
Distrust Reshape the portfolio for the Underserved
Increased demands on healthcare
companies Ethics and Transparency

Supply continuity To fulfill its mission to deliver health solutions – Integrated end-to-end supply chain
to millions of individuals with high quality organization
and maximum safety, Sanofi is committed to –D  etailed supply chain mapping and risk
ensuring continuity of supply to the markets it analysis for life-saving drugs, main
serves from manufacturing processes to final pharmaceutical products and launches
deliveries to patients worldwide. –D  efinition of dual sourcing or minimum
safety stocks
– Worldwide supply chain security program
to prevent product losses and diversion
(theft, sabotage, counterfeit)

Megatrends Strategic Pillar CSR Priority

Distrust Deliver outstanding launches Access to Healthcare
Unmet medical needs Reshape the portfolio for the Underserved
Simplify the organization
Ethics and Transparency

G4-12 G4-LA15

20 — SANOFI
 1

Risk description Risk mitigation 2

Acquisitions and integration To support its strategy for growth and –O  rganization in place to identify targets
evolution of its portfolio, Sanofi pursues a and perform appropriate analysis
strategy of selective acquisitions, in-licensing (including valuation)
and collaborations and shall identify –D  ue-diligence procedures to detect any
business development opportunities, execute potential issue in targets
them at reasonable costs, and integrate – Structured integration process
them in a timely manner. Sanofi shall – Differentiated integration models according
maintain capabilities for forthcoming to target profile
operations. 3
Megatrends Strategic Pillar CSR Priority
Unmet medical needs Reshape the portfolio Access to Healthcare
Innovation Sustain Innovation in R&D for the Underserved

Information and data security To prevent security breaches such as cyber –R obust IT security governance and
threats, malicious disclosures of information, processes
or data corruption, Sanofi shall protect its – Vulnerability analysis
information technology assets and ensure – Awareness campaigns for end-users
that sensitive information in any form is – Prevention and detection systems 4
properly secured. – Specific IT security audits

Megatrends Strategic Pillar CSR Priority

 igitization and technological
D Deliver outstanding launches Access to Healthcare
breakthroughs Reshape the portfolio for the Underserved
Innovation Sustain Innovation in R&D
Ethics and Transparency

Human capital and Sanofi faces intense competition for qualified – Development of human capital strategy
change management
individuals in senior management positions, – Identification of critical resourcing issues, 5
specific geographic regions or specialized risks and trends in demographics and skills
fields (e.g. clinical development, biosciences, – Appropriate workforce in numbers and skills
medical devices). In this context, difficulty in to meet future goals
attracting, integrating, and retaining highly –S  hape of workforce in terms of structure
skilled personnel may weaken our and geographic distribution
succession plans, materially affect the –M  ove the organization to a specialized and
implementation of our strategy and could interconnected model with globalized
ultimately impact our business or results of processes and systems
operations.

Megatrends Strategic Pillar CSR Priority

Growing and aging population Engage and develop people Engage with Communities
Digitization and technological
breakthrough
Innovation

Climate change and health Healthcare challenges continue to emerge – Internal and external awareness
as a result of climate change, demographic campaigns
(emerging/new risk)
and societal evolutions. Beyond treatment, –E  ngage stakeholders to put climate
Sanofi engages public and private change and health on the public agenda
stakeholders, starting with other life sciences –M  anagement of our carbon emissions and
companies, to take action to mitigate water use
climate change and anticipate its health – L imit the emissions of other elements
consequences. of the value chain, such as packaging
and transport
– Development of medicines and vaccines
to address health risks increased by climate
change (e.g., malaria, dengue, cholera)

Megatrends Strategic Pillar CSR Priority

Climate change Deliver outstanding launches Healthy Planet
Growing and aging population Reshape the portfolio
Income wealth disparity Sustain Innovation in R&D

G4-SO3

21 — SANOFI
4. Gouvernance

4.5 Stakeholder engagement

—
Develop mutually beneficial relationships

At Sanofi we believe in close relationships with our stakeholders. This engagement reflects
our commitment to address clear trends in civil society: calls for greater transparency and ethics,
and community involvement. It is also a key pillar in implementing our strategic roadmap,
reflecting the close links between stakeholder expectations and business activities.

A source of business innovation an appropriate legal parameter – from the Company’s different external
Stakeholder engagement is a powerful patients and healthcare professionals stakeholders (NGOs, patients’
source of shared learning, embracing to investors and local communities. associations, official bodies, healthcare
diverse points that inform our The main challenge is to define with professionals, researchers, business and
decision-making. By listening, we can each stakeholder the most adapted finance professionals, trade unions, the
understand and answer stakeholders’ way to interact: information, media). Working groups focus on four
concerns and expectations. We can consultation, dialogue or collaboration. priority subjects: access to healthcare,
then anticipate trends and long-term the price of innovation, Sanofi’s
shifts and identify the risks and International approach to R&D and its
opportunities that may impact our Stakeholder Panel socio-economic footprint in the
business. We can also explore joint After implementing close dialogue with geographies where it does business.
innovation aimed at driving new stakeholders in France over a four-year
revenue generation, improving existing period, in 2016 Sanofi launched the VALUE CREATED
operations, products and services international Stakeholder Panel, a S An international Stakeholder

and building new business models. formalized company-wide international Panel made of over
stakeholder dialogue procedure. It aims 40 representatives from various
Multiple contacts and to discuss the key topics impacting organizations external to Sanofi.
shared progress Sanofi and work with stakeholders on
Sanofi interacts every day and concrete action. This panel is made up
everywhere with its stakeholders – within of around forty people representing

Our stakeholders at the heart of our strategy

EMPLOYEES HEALTHCARE PROFESSIONALS AUTHORITIES AND PAYERS

• Sanofi employees • Physicians • Health authorities
• Trade unions • Pharmacists • Governments and regulators
• Midwives • Public and private insurance companies
• Nurses • Health Technology Assessments (HTA)
• Researchers and public health experts bodies

BUSINESS PARTNERS PATIENTS INTERNATIONAL AND LOCAL ORGANIZATIONS

• Pharmaceutical industry associations • Patients • United Nations Organizations
(IFPMA, EFPIA, PhRMA, LEEM) • Patient associations (Global Compact, WHO, UNICEF)
• Other pharmaceutical companies • Patient communities • NGOs (DNDi, Bill & Melinda Gates
• Public and private healthcare centers Foundation, etc.)
• Suppliers including Contract Research
Organizations (CROs)

INVESTORS LOCAL COMMUNITIES MEDIA

• Shareholders • Neighbors • Journalists
• Institutional investors • Economic players including small • CSR experts
• Socially responsible investors and medium enterprises • Social media
• Rating agencies • Schools/Universities
• Citizens
• Consumers

G4-16 G4-24 G4-25 G4-26

More:
> Stakeholder Engagement Factsheet:
G4 -16 G4 -19 G4 -24 G4 -25 G4 -26 G4 -27
> CSR Strategy, Governance and Materiality Factsheet:
G4 -18 G4 -19 G4 -20 G4 -21 G4 -24 G4 -27 G4 -56
S : Social

22 — SANOFI
5. Performance

5.1 Strategic roadmap progress

—
Strong performance in line with our strategy
1

2016 was a dynamic year for Sanofi as we progressed on our 2020 strategic roadmap.
We successfully closed the Boehringer Ingelheim asset swap, lifting us into a leadership position
in Consumer Healthcare. Our streamlined organization started to deliver, supporting a stronger 2
financial performance than initially anticipated. At the same time, we completed filing of our
breakthrough innovation Dupixent® for its first indication, atopic dermatitis, in the US and Europe.
Separately, we recently advanced five new molecules into registration studies.

KPIs of value creation

3

Onduo is focused Healthcare

on enabling diabetes Solutions available in About 80,000 Dengvaxia®,

170
management through
innovative solutions
patients suffering the first
from MS treated 4
combining devices, by Genzyme
vaccine
software, medicine,
countries
medicines worldwide for dengue
and professional care

5
Dupixent®
(dupilumab)
Sanofi is is the first biologic
medicine approved
a leader in Consumer for the treatment
Healthcare

46
of adults with
moderate-to-severe
atopic dermatitis

pharmaceutical
new molecular
entities and vaccines
Around
€6 bn €3 bn
in R&D pipeline

annual invested in
R&D investments production capacities

by 2020 over
3 years

23 — SANOFI
5. Performance

Reshape the portfolio In 2016, Sanofi Genzyme continued to Our Sanofi Genzyme Multiple
strengthen our position in the field of Sclerosis (MS) franchise continued to
Sustain leadership rare diseases, in particular for deliver strong growth in 2016 through:
In 2016 our Diabetes & Cardiovascular lysosomal storage disorders, such as • Aubagio®, approved in more than
GBU took a substantial step forward in Pompe disease, Fabry disease, 70 countries, is the fastest growing oral
leading the market shift to managing Gaucher’s disease and a form of therapy for relapsing MS and the most
diabetes outcomes by establishing type 1 mucopolysaccharidosis (MPS 1). switched to treatment in the US.
Onduo, our diabetes solutions joint In addition, we took further steps to • Lemtrada® approved in more than
venture with world-class partner Verily support faster diagnosis of rare 60 countries as an MS relapse
(formerly Google Life Sciences). Onduo diseases, including encouraging the treatment and has an established
takes a multi-stakeholder approach to use of proven screening protocols by benefit-risk profile.
diabetes management by involving the hematologists; collaborating to use
diabetes community, clinicians, payers next-generation sequencing to VALUE CREATED
and healthcare professionals in the diagnose patients with a range of ATH 2.5 million people worldwide

product development process. Onduo muscular diseases, including Pompe suffer from MS, the most common
will initially focus on type 2 diabetes, disease; and encouraging testing for cause of disability in young adults:
specifically on the objective of patients’ family members and patients • Aubagio® used by 67,000 patients
developing solutions ranging from in certain high-risk populations. worldwide in 2016,
enhanced medication management to • Lemtrada® used by 12,000 patients
improved patient behaviors. Over time, VALUE CREATED worldwide.
we plan to include the type 1 diabetes ATH Around 14,000 people

community, and people at risk of worldwide receive Sanofi Genzyme Explore strategic options
developing diabetes, with the goal of treatments for lysosomal storage We divested our Animal Health
improving prevention of the onset of the disorders. business through the swap with
disease. Boehringer Ingelheim, refocusing Sanofi
Build competitive positions on human health.
VALUE CREATED The Consumer Healthcare year was We carefully reviewed all options for our
Over 400 million adults
ATH marked by the successful completion, European Generics business. In
worldwide suffer from diabetes on January 1, 2017, of Sanofi and October 2016, we announced the start
causing 1 death every 6 seconds. Boehringer Ingelheim’s transaction to of a carve-out process to divest this
ATH Onduo’s objective is to enable swap Sanofi’s Animal Health and business and we will be looking for a
simple and intelligent disease Boehringer Ingelheim’s CHC businesses. potential buyer to leverage the mid-
management through solutions Sanofi acquired Boehringer Ingelheim’s and long-term sustainable growth
combining devices, software, CHC business in all countries except opportunities. Extensive preparations
medicine, and professional care. China and enhanced our position in are required to ensure the right
our strategic categories – Vitamins, conditions for this divestment, expected
In Vaccines, 2016 marked the end of Minerals and Supplements, Cough to be completed by the end of 2018.
the joint venture between Sanofi & Cold Care, Digestive Health, However, we have confirmed our
Pasteur and Merck Sharp & Dohme. The and Pain Care. commitment to our Generics business
two companies are now pursuing their in emerging markets.
own distinct growth strategies and have VALUE CREATED
integrated their respective European ATH Sanofi is one of the top three

vaccines business into their own Consumer Healthcare global

operations. players.

VALUE CREATED
F Additional annual net sales

derived from this transaction are

estimated at €280 million, based
on 2016 figures.

ATH : Access to Healthcare G4-13 G4-27

F : Financial

24 — SANOFI
 Deliver outstanding Launches
1
launches 6 MAJOR LAUNCHES
BETWEEN 2015 AND 2017
Between 2015 and 2017, our R&D
pipeline will deliver six major launches
(Toujeo®, Soliqua®/Suliqua®,
Praluent®, Dengvaxia®, Dupixent®,
Kevzara®), cutting-edge medical
innovations with the potential to drive 2
future growth.

In 2016, in Diabetes, we continued the

global launch and ramp-up of Toujeo®
and Soliqua®/Suliqua® 100/33 was
approved in the US in 2016 and
launched in January 2017. It was
approved in the EU as Suliqua® in
3
January 2017. In Cardiovascular, VALUE CREATED indications, including asthma, pediatric
we also launched Praluent® for ATH Dengvaxia®, the first vaccine atopic dermatitis, nasal polyposis,
hypercholesterolemia. In a challenging for dengue: 390 million annual cases eosinophilic esophagitis, and food
payer environment, we continue to work in 128 countries. allergies.
on securing patient access to this ATH In 2016, we provided 1+ billion

important medication developed jointly doses of vaccines, for the VALUE CREATED
with Regeneron. immunization of 500+ million people ATH Atopic dermatitis (AD), the most 4
worldwide against 20 serious common form of eczema, is a
VALUE CREATED diseases thanks to Sanofi Pasteur. chronic inflammatory disease with
ATHCardiovascular and Diabetes ATH 250,000 – 500,000 deaths from symptoms including a skin rash with
the 3rd and 4th largest therapeutic influenza each year. Sanofi Pasteur intense, persistent itching and
areas with global sales of $63 billion produces ~40% of total influenza dryness, cracking, redness, crusting,
and $42 billion respectively: vaccine sold. and oozing: Dupixent® (dupilumab)
• Toujeo® the next-generation basal is the first and only biologic
insulin enabling improved glycemic In Immunology, we have developed medicine approved for the treatment 5
control with limited to neutral the cornerstones of a major new of adults with moderate-to-severe
weight effect; franchise within Sanofi Genzyme atopic dermatitis.
• Suliqua®/Soliqua® is an innovative through sarilumab (Kevzara®) for
combination therapy for type 2 rheumatoid arthritis and dupilumab
diabetes patients; and (Dupixent®) in atopic dermatitis, both
• Praluent®, an innovative drugs developed in collaboration with
PCSK9 inhibitor for adults with Regeneron. Kevzara® achieved its first
heterozygous familial approval in Canada in early 2017 and
hypercholesterolemia or Dupixent®, set to be the first in class
atherosclerotic heart problems, biologic to reach the market. It was
who need additional lowering approved for the treatment of adults
of LDL cholesterol. with moderate-to-severe atopic
dermatitis in the US in March 2017,
In 2016, our Vaccines GBU launched following FDA priority review and is
Dengvaxia®, the first vaccine for expected to be available Q2 2017.
dengue fever, 13 vaccines were In December 2016, the European
registered and 9 were launched, Medicines Agency accepted the
including Hexacim® a pediatric Dupixent® Marketing Authorization
combination immunizing against Application for moderate-to-severe
6 diseases. Hexavalent vaccines help atopic dermatitis for review and
bringing a higher standard of care a decision on the approval is expected
to all patients. It reduces the number of in late 2017. Dupixent® is Sanofi’s fastest
injections and vaccination ever development of a medicine
administration time and fits all ranges (seven years and five months from
of immunization schedules while first-in-human studies to approval). It is
matching the highest standards of a “pipeline in a product” with clinical
quality. studies underway for multiple

25 — SANOFI

1704233_SANOFI_RAI_GB.indd 25 29/06/2017 11:46

5. Performance

Sustain innovation • 13 NMEs and vaccine candidates are sotagliflozin, a dual SGLT1 and SGLT2
in Phase III or submitted to the inhibitor, in Phase III trials for diabetes
in R&D regulatory authorities; are also late stage pipeline assets to
• 5 NMEs started registrational studies in watch that are based on innovative
In 2016, we aligned our R&D 2016: isatuximab in multiple myeloma, multi-targeting approaches.
organization with the new GBU SAR439684 (anti-PD-1) in skin cancer,
structure, reorganized Research into sotagliflozin in type 2 diabetes, VALUE CREATED
thematic clusters, continued to build olipudase alfa in acid ATH New product launches across

capabilities in translational sciences, sphingomyelinase deficiency multiple therapeutic areas providing

and recruited important new talents. (Niemann-Pick Disease type B) innovative therapies focused on
We are also sustaining innovation in and GZ402666 (NeoGAA) in Pompe patients’ unmet medical needs.
R&D through a number of key disease; ATH Clostridium difficile vaccine

collaborations, such as with Regeneron, • 3 novel vaccines: meningitis would be the first to prevent severe
Innate Pharma and WarpDriveBio for combination, Fluzone® QIV HD nosocomial disease.
Oncology and Immunology, Verily for and Clostridium difficile. ATH Leveraging external

Diabetes, Alnylam for Genetic Diseases collaborations in promising areas:

and Science37 for use of digital Dupixent®, a monoclonal antibody with monoclonal antibodies, RNAi
technology in clinical trials. Supporting a dual action against both the IL4 therapeutics, immuno-oncology, rare
these collaborations is an important receptor and the IL13 receptor, is an genetic diseases and antibiotics.
part of our R&D strategy. example of Sanofi’s strategy to achieve ATH Transformation to biologics,

breakthrough innovative therapies that new multi-targeting approaches and

The Sanofi R&D pipeline contains target multiple pathways with one innovative technology platforms.
46 pharmaceutical new molecular treatment. Isatuximab, an anti-CD38
entities (NMEs) and vaccine monoclonal antibody, currently in
candidates in clinical development: Phase III trials for multiple myeloma and

R&D pipeline summary table (as of April 2017)

Phase I Phase II Phase III Registration TOTAL

Oncology 2 2 1 0 5

Diabetes 2 2 1 1 6

Cardiovascular diseases 3 2 0 0 5

Immuno-inflammation 2 2 0 2 6

Infectious diseases 0 1 0 0 1

Rare diseases 0 3 2 0 5

Multiple sclerosis,
neurology, ophthalmology 3 1 0 0 4

Vaccines 3 5 3 3 14

TOTAL 15 18 7 6 46

NMEs & VACCINES

33 13

ATH : Access to Healthcare

26 — SANOFI
Simplify Supporting business through Engage and
efficient services 1
the organization Sanofi Business Services (SBS) is a new develop people
Global Function created in 2016
Our final strategic priority is to drive gathering 4,200+ associates worldwide Our human capital strategy goes
focus and simplification within our representing 80+ areas of expertise. beyond the ambitions of the HR
organization. In 2016, we implemented SBS delivers best-in-class services Function to encompass Sanofi’s entire
a new organizational structure to be to internal customers and third parties. approach to engaging and developing
more closely aligned with our strategy Its innovative operational and its people. It is based on four pillars:
and more effective in our execution: organizational model focuses on •m  aximizing organizational 2
• five Global Business Units (GBUs) customer service, efficiency and value effectiveness;
integrating global franchises and creation to enable Sanofi to deliver •d  eveloping capabilities for growth;
country-level commercial and medical its strategic 2020 roadmap. •d  eveloping Sanofi leaders;
organizations for each of our major SBS seeks to simplify and harmonize •e  volving Sanofi culture.
businesses; processes, tools and working methods
•c entralized Global Functions through new technological solutions,
(Finance, Legal/E&BI, Human with the aim of allowing GBUs and
Resources, Information Technology Global Functions to focus on their
3
and Solutions, etc.); core business.
•a n R&D organization by therapy area It is structured around three centers of
to align with the GBUs for late stage expertise: Procurement, Real Estate,
products; Facility and Records Management, and
•a global Industrial Affairs platform five end-to-end processes: Connect to
aligned with the GBUs; Resolve, Employees Services, Purchase
•a strengthened Medical Affairs to Pay, Customer Invoicing to Cash, 4
function, with our new Chief Medical Account to Report.
Officer, Dr. Ameet Nathwani, now a
member of the Executive Committee. 2016 saw implementation of the new
SBS Organization in North America,
To support this new structure, we have Europe and France, while ensuring
embarked on a program to improve business continuity. From 2017 onwards,
the excellence of our delivery by our geographical reach will continue
implementing a global information to grow in order to enhance delivery 5
systems solution and by standardizing of services to all Sanofi employees
and consolidating our processes. and third parties.

We have also continued to reshape our VALUE CREATED

operating model and our industrial F We have defined four main

plant network as part of our program priorities to contribute to the Sanofi

of simplification. The network now better 2020 roadmap:
matches our evolving business by •c  are in becoming a talent platform
implementing a more focused for Sanofi with customer excellence
approach in emerging markets, expertise;
improving competitiveness and •c  onnect to enhance excellence in
capacity utilization, sharing of lean customer service to give time back
manufacturing practices, lowering our to Sanofi employees;
environmental footprint and simplifying • s implify by driving process
product lines. We also continue to invest excellence through standardization,
in our biologics capacity to support innovation & digitization;
product launches and growth. Since •d  eliver to create business value with
January 2016, the Global Industrial P&L and cash impact that support
Affairs Function is also responsible for value creation.
Sanofi Global Supply Chain, Quality
and HSE.

Related content on this report:

> 3.2 Strategic roadmap
> 3.3 Five Global Business Units
> 3.5 Finance
> 5.3.3 Engage with Communities
F : Financial

27 — SANOFI
5. Performance

5.2 Solid financial performance

Targeted investments sustain growth and maintain financial discipline

—
Sanofi results outperformed expectations in 2016, thanks to the diversity of our businesses
and our streamlined organization. The year again showed that dynamic franchises, such as Rare Diseases,
Multiple Sclerosis, Vaccines and our solid performance in Emerging Markets could offset the slowdown
of our Diabetes business in the United States. The strength of our financial performance drives our strategy
of value creation for the Company and for our shareholders; it also benefits other stakeholders.

Sanofi value distribution EC

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

Manufacturing
Distributing

Financing Investing
Debts contracted SANOFI Investing activities
€4,773 million €2,717 million
Asset disposals Net sales Including:
€209 million • Industrial, research
€33,821 million(1) and intangible assets:
Issuance of Sanofi R & D
share Sales €2,083 million
€305 million •equity interests and
financial assets:
€634 million

Patient care
Payments
Governments Investors and banks Suppliers
Income and other Shareholders (dividends) Sanofi spend
taxes paid €3,759 million €14,950 million
€2,622 million(2) Repayment of long-
term debt Employees
€2,576 million Personnel costs
€9,119 million(3)
Banks net interest paid
€345 million
Share buyback
€2,908 million

Source: Annual Report on Form 20-F 2016.

(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 €5,432 million in 2016.
(2) Based on business operating income, income tax expense amounted to €2,054 million. The effective tax rate based on our business
net income was 23.3% in 2016. Other levies and taxes amounted to more than €560 million.
(3) Including social security contributions of € 1,948 million.

EC : Economic

28 — SANOFI
 Sales by GBUs and Regions

€33.8 bn (1)
1
in 2016
18.9%
13.5% DIABETES
VACCINES & CARDIOVASCULAR

14.8% 2
9.9% SPECIALTY CARE
CONSUMER
HEALTHCARE

3
42.9%
GENERAL MEDECINES(2)
& EMERGING MARKETS(3)

36.6 % 28.4 % 25.7 % 9.3 %

UNITED STATES EMERGING MARKETS(3) EUROPE (4) REST OF THE WORLD (5)
4
(1) Excluding Animal Health, source: Form 20-F 2016.
(2) Including Established Rx products & Generics.
(3) Emerging Markets: world excluding US, Japan, South Korea, Canada, Australia, New Zealand, Puerto Rico and Europe.
(4) Europe: Western Europe and Eastern Europe excluding Eurasia (Russia, Ukraine, Georgia, Belarus, Armenia and Turkey).
(5) Rest of the World: Japan, South Korea, Canada, Australia, New Zealand and Puerto Rico.

Delivering our key financial objectives(1) F 5

(€ million) 2016 2015 Change Progress against objectives

–0.7%
Net sales 33,821 34,060 On track
+1.2% at CER

Other revenues 887 801

Cost of sales (10,702) (10,919)

Gross profit 24,006 23,942

+ 0.3% Above expectations
As % of net sales 71.0% 70.3%

Research and Development expenses (5,172) (5,082)

+1.8%
As % of net sales 15.3% 14.9% Operating Expenses growth
Selling and General expenses (9,486) (9,382) rate at CER: above expectations
+1.1%
As % of net sales 28.0% 27.5%
Net income attributable to equity holders of Sanofi 4,709 4,287 +9.8%

Basic earnings per share (in euros) 3.66 3.28 11.6%

–0.9%
Business net income 7,308 7,371
+2.5% at CER
+0.7%
Business earnings per share (in euros) 5.68 5.64 Above expectations
+4.1% at CER

(1) Source: Annual Report on Form 20-F 2016/Document de référence, for comprehensive information please refer to these documents.

Company net sales: €33,821 million, Gross profit: €24,006 million in 2016 Net income attributable to equity
0.7% lower than in 2015, but 1.2% (71.0% of net sales), versus €23,942 holders: €4,709 million, up 9.8% on
higher at constant exchange rates million in 2015 (70.3% of net sales). 2015, while basic earnings per share
(CER) driven mainly by the Sanofi The gross margin ratio for the were 11.6% higher year-on-year at €3.66.
Genzyme and Sanofi Pasteur Pharmaceuticals segment was
Global Business Units. at 72.4%, mainly due to improved Business net income: €7,308 million,
productivity in our industrial facilities. 0.9% lower (+2.5% CER) than in 2015,
while business earnings per share
were up 0.7% (+4.1% CER) at €5.68.

F : Financial

29 — SANOFI
5. Performance

Creating a more agile Connecting each employee Implementing a responsible

Sanofi through a strategic with Sanofi’s success and tax policy
cost savings program performance As a multinational corporation, Sanofi
In 2016, Sanofi delivered approximately Sanofi intends to associate its has a responsibility to pay an
€650 million of cost savings which was employees with the future development appropriate amount of tax and comply
largely reinvested to support growth and results of the Company by with the laws and rules in force in all the
initiatives. Sanofi expects that cost increasing employee share ownership. 83 countries where we do business.
savings will reach €1.3 billion in 2017 On July 22, 2016, a total of 1.8 million In 2016 the Company’s income tax
and it remains on track to deliver at shares (approximately 0.14% of the charge on business operating income
least €1.5 billion in cost savings by share capital) were issued as part of was €2.0 billion worldwide.
2018. Action 2016: 24,218 employees signed The intellectual property of many of our
These savings are primarily coming up for the plan, at a price of €57.25 per leading products originates from
from: share. Every employee subscribing for Western Europe and our headquarters
–simplification of the organization; at least five shares received one are located in France. More than
–manufacturing operational; additional share and when 30 production plants, including the
improvement and productivity efforts; subscribing for at least ten shares majority of our primary plants, and over
–Product portfolio streamlining in received two additional shares as an half our Research and Development
Established Prescription Products; employer’s contribution. A similar sites are also located in Western
–and alignment of sales force in line operation is planned to take place Europe. Therefore Sanofi pays a
with market dynamics. in the second quarter of 2017. significant proportion of income tax
in this region (65%).
VALUE CREATED VALUE CREATED
2016 Company net sales:
F S 24,128 employees worldwide VALUE CREATED
€33,821 million. signed up at preferred conditions for EC Sanofi’s income tax charge

F Gross profit: 71.0% of 2016 net the Action 2016 share ownership. on business operating income was
sales. S 1.4% of Sanofi share capital €2.0 billion worldwide in 2016.
F Earnings per share: 11.6% held by employees as of
higher than 2015. December 31, 2016.

EC : Economic More:
> Tax Policy Factsheet
F : Financial
G4 DMA G4 -EC1
S : Social

30 — SANOFI
 5.3 CSR performance

Creating sustainable value for our company and our stakeholders

— 1

CSR is a key asset of our strategy and has always played a fundamental role within
our business and our ability to deliver our strategic objectives. Our CSR agenda focuses on the four
key areas which have the greatest significance to our activities and our stakeholders: Ethics and 2
Transparency, Access to Healthcare for the Underserved, Engage with Communities, and Healthy Planet.
We are committed to improving every year the way we conduct our operations while contributing
to addressing global challenges and creating sustainable shared value. We assess our CSR performance across
a wide range of measures and key indicators of value creation (KPIs). In 2016, we made significant progress
in delivering sustainable performance while rolling out our new CSR organization.

3
Contributing to value creation through our four pillars

CONTRIBUTING TO ACCESS DEVELOPING OUR COMMUNITIES

TO HEALTHCARE AND EMPLOYEES ENGAGEMENT
• Foster access to healthcare • Sustain ecosystems around Sanofi’s sites
for underserved patients • Develop and engage employees
4
ACCESS TO
HEALTHCARE ENGAGE
FOR THE WITH
UNDERSERVED COMMUNITIES

ETHICS AND
TRANSPARENCY

UPHOLDING ETHICS AND ADDRESSING ENVIRONMENTAL

TRANSPARENCY CHALLENGES 5
• Manage our activities with • Reduce CO2 emissions
ethics and business integrity HEALTHY PLANET • Reduce waste
• Protect patient safety • Streamline water use and drug residues
• Ensure medical ethics and bioethics • Increase awareness of climate change
• Promote and respect human rights and its consequences on health

G4-25 G4-26 G4-27

31 — SANOFI
5. Performance

5.3.1 Ethics and Transparency

Ethics and Transparency are at the heart of Sanofi’s social responsibility strategy: they define
our way of working every day and form the basis of our relationships with each of our stakeholders.
Respect for human rights in our business operations is part of our Ethics and Transparency approach.
We are convinced that the principles of human rights apply to people, to nations and, by extension,
to businesses. In that context, we have assessed the risks related to human rights. To sustain our
commitment to Ethics and Transparency, Sanofi has established and enforced strong rules in
accordance with the legal framework in each country where we operate. A rigorous internal control
framework is also implemented to prevent non-compliance with internal rules or policies. Drivers
of value creation, these mechanisms are essential to preserving the trust of patients, shareholders
and communities, safeguarding our image and reputation and protecting Sanofi employees.
Ethics and Transparency also include our commitment to preserve the safety of patients through
robust Global Pharmacovigilance and Epidemiology (GPE), quality and anti-counterfeiting processes.
The way we handle Ethics and Transparency in Business Ethics, Responsible Procurement, Medical
& Bioethics, Transparency and Patient Safety is developed in the following sections.

Our actions to promote Ethics and Transparency and develop responsible procurement
contribute to the Goals 12 “Responsible consumption and production”, 16 “Peace, justice
and strong institutions” and 17 “Partnerships for the goals” of the UN SDGs.

KPIs of value creation

At least
A Code of Ethics 473 10% decrease 43 clinical trial
available in animal use registrations
suppliers assessed
in 29 languages through improvement and 142 clinical
since 2014 for
and provided or development trial results
their compliance
to all employees of new techniques published
with CSR rules
in the last two years
in 2016

Public disclosure 611 scientific

The Bioethics in 40 countries and medical
Close to
Committee ensures of our interactions publications
94,000 employees
ethical conduct with healthcare sponsored or
trained on Quality
in clinical development professionals and authored
Fundamentals at
involving patients medical and scientific by Sanofi identified
the end of 2016 in PubMed, with over
and healthy subjects associations in regard
to fair compensation 5,600 journals indexed

G4-14 G4-15 G4-56

More:
> Human Rights Factsheet
G4 -15 G4-DMA G4-HR11
> Children’s Rights Factsheet
G4 -15 G4-DMA G4-HR11
> Human Rights in our Activities
Sanofi Guide
G4 -15 G4-DMA G4-HR11

32 — SANOFI
 Business ethics
Doing the right thing, the right way, at the right time and for the right reason
1

Our approach Addressing business • internal investigations and dedicated

ethics challenges teams that may, if appropriate,
A fundamental Sanofi objective is to in our daily activities recommend corrective action
maintain a culture where the willingness processes and/or disciplinary
to do the right thing, to comply with A companywide Ethics & Business sanctions.
applicable laws and Sanofi policies, is Integrity program has been developed 2
fully embedded across the organization. and implemented, based on: VALUE CREATED
Supported by all departments, the Ethics •a dedicated organizational structure; T 3 mandatory trainings for

& Business Integrity (E&BI) Department is •a Code of Ethics, addressing 13 topics employees in 2016 – Fighting
a cornerstone of our ethical approach, relating to ethical matters and corruption, Confidentiality and
supporting the achievement of our supported by dedicated policies and Interaction with healthcare
business objectives while ensuring procedures (e.g. anti-bribery policy, professionals.
compliance and promoting business policy on interactions with patients, T Over 190,000 Ethics and

ethical values in daily activities. patient advocates and groups, Business Integrity training modules
3
donations and other contributions); followed by Sanofi employees
•e ducation and training; worldwide in 2016.
•a dedicated 24/7 confidential T A Code of Ethics available in

Compliance Helpline to respond to 29 languages and provided to all

alerts, and; employees.

Our dedicated internal organization

A Global Compliance Officer •P

 roviding strategic compliance leadership to the executive management team
with a double reporting line, and the Board of Directors
to the General Counsel and •O
 verseeing the effective implementation and management of the E&BI program
to the CEO
5
A network of more than •R
 esponsible for ensuring the core elements of the E&BI program are implemented
130 Compliance Officers and working as designed in the assigned countries
•S
 upporting the local business operations on a day-to-day basis

A Compliance champions •A  cting as liaisons by relaying and reinforcing compliance-related messages

network based on employee developed by E&BI
volunteers in each country/ • Supporting E&BI initiatives
GBU/function
• F ollowing-up on mandatory trainings and assisting with real-time monitoring
•S erving as the point of contact for employees and facilitating speaking up and
promoting E&BI culture

An Executive Compliance •A
 ssessing, recommending and overseeing all initiatives aimed at sustaining
Committee chaired by Sanofi’s and improving the E&BI program, as well as fostering a permanent commitment
CEO to Sanofi core values (Teamwork, Courage, Respect and Integrity)

G4-14 G4-15 G4-56 G4-DMA G4-SO4

More: > Binding Corporate Rules and List of

> Code of Ethics G4-15 G4-56 Sanofi Affiliates having signed the BCR
> Ethics and Business Integrity Factsheet > Responsible Lobbying Factsheet
G4-DMA G4-S04 G4-S07 G4-16 G4-24 G4-DMA G4-S06
> Anti-Bribery Policy G4-56 G4-S04 > Sanofi Internal Audit Factsheet
> Fighting Corruption Factsheet > Sanofi Internal Control & Processes
G4-DMA G4-S04 G4-56 Factsheet G4-56
> Prevention of Conflicts of Interest > Anti-Competitive Behavior Factsheet
Factsheet G4-56 G4-DMA G4-S07
> Protection of Personal Data Factsheet
T : Trust

33 — SANOFI
5. Performance

Responsible procurement
Sustainable sourcing: creating value throughout Sanofi’s supply chain

Our approach Sanofi procurement risk management model

Our responsible procurement strategy MARKET PLACE

is an integral part of Sanofi’s supply markets, suppliers,
countries, competitors
chain. It is about seeking to build value
while meeting the procurement GLOBAL OPERATIONAL
challenge of employing innovative • Natural • Supply
sourcing strategies, to promote supplier • Political • Finance
STRATEGIC SOURCING
diversity and support our CSR • Economical • Innovation
performance. We work closely with our • Technological • Strategy/long
suppliers so that they will take CSR • Legal range plan
principles on board and comply with
GLOBAL OPERATIONAL
high standards, a decisive factor in their EXTERNAL ENVIRONMENT RISKS RISKS INTERNAL ENVIRONMENT
commercial relationships with Sanofi. governments, NGOs, patient top management, business
associations, media/press, partners, lead specifiers
investors
COMPLIANCE CSR
RISKS RISKS
Our supplier
risk management model COMPLIANCE CSR
• Governance • Environment
Since 2007, we have developed a • Policies/rules RESPONSIBLE PROCUREMENT • Human Rights/
robust, twofold methodology for the of conduct Labor
large-scale and targeted evaluation • Business Ethics • Supply Chain
of our suppliers worldwide to address REGULATION AUTHORITIES
a full range of procurement risks, and policies, standards and laws,
moral entrepreneurs, civil
provide appropriate risk assessment
society, rating agencies
and mitigation:
• r isk mapping per procurement
category, taking into account
environmental, social, and ethical Our collaborative approaches performance. Through this network, Sanofi
risks, and highlighting 25 procurement to assess and support suppliers is part of two major work programs:
categories at risk (e.g. waste • s upplier shared audit: this program
management, civil engineering, In 2016, Sanofi joined the Together for enhances efficiency for both suppliers
security and safety firms); Sustainability (TfS) initiative, thereby and members by avoiding, as far as
• r isk-exposure mapping per country, becoming the first French-based possible, multiple supplier audits
taking into account human rights, healthcare company to become part through structured sharing of audit
health and safety, political stability, of this growing collective supporting information between PSCI members,
environmental sustainability index, sustainable supply chains based on and;
corruption, and competitiveness, established principles, such as the UN • s upplier performance improvement:
and highlighting 40 countries at risk Global Compact and the Responsible this program establishes formal
in 2016 in Africa, Southern Europe, Care Global Charter®. This initiative gives industry guidelines and supports
Eastern Europe, Asia Pacific and Latin us access to a large shared platform suppliers in increasing their ability
America. of supplier assessments and audits to address ethical, labor, health and
(operated by EcoVadis) and the safety, and environmental issues.
opportunity to share best practices with We believe that being part of these
our peers. In addition, Sanofi became collaborative initiatives will improve our
a member of the Pharmaceutical capability, along with our suppliers,
Supply Chain Initiative (PSCI) at the to uphold our CSR commitments and
beginning of 2017. The PSCI involves requirements while enhancing efficiency.
24 pharmaceutical and healthcare
companies who encourage continuous VALUE CREATED
improvement and compliance of their T 473 supplier assessments since

suppliers in regard to better social, 2014.

environmental and economic T 86 audits conducted in 2016.

G4-12 G4-16 G4-56 G4-DMA G4-EC9 G4-DMA G4-EN32 G4-EN33

More:
> Responsible Procurement FactsheetG4-DMA G4-EC9 G4-EN33 G4-LA15
G4-HR11 G4-SO10G4-EN32 G4-LA14 G4-HR10 G4-SO9
> Supplier Code of Conduct G4-56 G4-DMA G4-HR11
> Sanofi Supplier Relationships Charter
T : Trust

34 — SANOFI
 Medical ethics and bioethics
Contributing to responsible clinical practices and scientific progress
1

Our approach The ethical challenges in clinical The ethical challenges

research, our key actions in the use of animals in research
The pharmaceutical sector is a and production of drugs
change-intensive industry, where we are We are required to address potential and vaccines
continuously challenged to prove the challenges, such as new
value of our medicines and vaccines biotechnologies, scientific advances, Use of animals for scientific purposes 2
across all healthcare systems, to a public health priorities and public poses challenges for the scientists who
multitude of interconnected demand for greater transparency, and use animals in medical research, and
stakeholders. Sanofi recognizes the data protection. Our efforts to further for society as a whole. The current
importance of defining, respecting and improve in this regard continue every consensus is that using animals for
continuously revisiting and improving year, and 2016 included the following: research and production is justified
consistent and transparent bioethical • informed Consent Form: improved when there are clear benefits for
standards throughout our research and template to be used in clinical trials; human health and when the 3Rs
clinical development activities. •p  atients and volunteers: adaptation principles (replacement, reduction and
3
Now reporting directly to the CEO, our of our framework for evaluating the refinement of animal use) are applied.
Chief Medical Officer (CMO) and Head ethics of our clinical research studies; Animals remain an integral part of a
of Medical Function play a key role •h  uman biological samples: a unified comprehensive research and testing
in supporting a transparent, company solution with high ethical strategy that includes non-animal
patient-focused, customer-centric standards is in development to methods (such as computerized
company. conform sample management across models and in vitro testing) and clinical
The Sanofi Bioethics Committee (BEC) all Sanofi organizations; research. Animal use is also part of 4
determines Sanofi’s position on • research activities: continuous many regulatory requirements. For
bioethics policies, designed to ensure adaptation of our activities to the example, testing vaccines before batch
ethical conduct in clinical development international Nagoya treaty on release remains mandatory worldwide
involving patients and healthy subjects, biodiversity. Full implementation for public health reasons and animal
including respect for human dignity of the new processes is expected use is required to ensure the safety and
and human rights, and the protection to be organized throughout 2017; efficacy of commercialized vaccines.
of animals. It also supports the work of •a  nimal use in research and drug and
the Sanofi Risk Committee. vaccine production: continuous VALUE CREATED 5
implementation of the 3Rs principles. T 10% decrease in animals
used through improvement or
development of new techniques
in the last two years.
T The BEC mandate is to ensure

ethical conduct in clinical

development involving patients and
healthy subjects.

G4-34 G4-56

More:
> Animal Protection Factsheet
> Sanofi Animal Protection Charter G4-DMA G4-PR11 G4-PR12
> Medical Ethics and Bioethics Factsheet G4-DMA G4-PR1 G4-PR2
> Sanofi Clinical Trials and Results website: http://en.sanofi.com/Innovation/
clinical-trials-and-results/clinical-trials-and-results.aspx
T : Trust

35 — SANOFI
5. Performance

Transparency

Our approach >p  atient engagement in access and Sphere initiative, the Coalition Against
policy – to help provide patients Major Diseases, Prize4Life, and other
In accordance with all applicable rules with effective, affordable, and public – private partnerships, such as
and regulations, and company sustainable solutions and to help the European Innovative Medicines
commitments, Sanofi is committed to ensure that patient needs are Initiative (to date, sharing of data from
appropriate transparency vis-à-vis its reflected in policy decisions, 19 oncology clinical trials on the
stakeholders including regarding its >p  atient engagement in medical Project Data Sphere platform), and;
medical activities. Transparency is a innovation – to understand and • s haring of patient-level clinical trial
strong driver of credibility and trust, and incorporate, where appropriate, data and documents with qualified
is critical in our relationships with patient insights, encourage researchers through a data sharing
healthcare professionals, healthcare a supportive environment for portal, in line with our commitment
organizations and patient associations. innovation, and accelerate to the PhRMA/EFPIA Principles for
It is also an essential element of our new collaboration models; Responsible Clinical Trial Data
mission to protect health. This includes: •c
 linical trials data transparency. Sharing.
• disclosure of amounts paid to Making clinical trial information
healthcare professionals and other available to the public benefits VALUE CREATED
transfers of value on the Sanofi patients, healthcare providers and the T Public disclosure in 40 countries

website, according to local scientific community and is key to of our interactions with healthcare
regulations; efficient scientific progress. Sanofi professionals and medical and
• availability of all ongoing clinical publicly shares information on scientific associations.
study protocols on public registers, appropriate clinical trials based on T Clinical Trial Disclosure: at least

and; our commitments, international and 43 clinical trial registrations and

• publication of study results, either local, legal and regulatory 142 clinical trial results posted
positive or negative on dedicated requirements, and other disclosure in 2016.
websites, according to Sanofi policy. commitments established by the T 611 scientific and medical

pharmaceutical industry associations publications sponsored or authored

Sanofi’s internal program, “Transparency of which we are a member. by Sanofi were identified in PubMed,
Initiative”, encompasses three main with over 5,600 journals indexed.
areas: T 37 requests from 11 countries

• our interactions with healthcare for clinical trial data sharing for 92
providers (HCPs), healthcare Sanofi’s contribution clinical trials since January 1, 2014.
organizations (HCOs) and medical to scientific research
and scientific associations (MSAs).
Consistent with applicable regulations Sanofi has a long history of contributing
and the EFPIA Disclosure Code, Sanofi to scientific progress including through:
applies objective criteria and respects • s haring of the results of our clinical
fair compensation standards; trials through publications in
• our interactions with patient peer-reviewed journals, presentations
associations. Collaborating with at medical congresses, etc., in line
patient advocates and groups all with the 2010 IFPMA Joint Position on
over the world on mutual priorities is a the Publication of Clinical Trial Results
key lever toward access to healthcare, in the Scientific Literature and
to enhance: applicable legal requirements
>p  atient engagement in their health or restrictions;
– to help people take more control •p  articipating in initiatives where data
of their health through better sets are utilized for further research
prevention, and disease purposes, such as the Project Data
management,

G4-56

More:
> Patient associations supported by Sanofi G4-DMA G4-SO1
> Sanofi Standards For External Experts Participation at Scientific Events Brochure
> Transparency Initiative:
– Public Disclosure Payments Data
– Clinical Trial and Results website: http://en.sanofi.com/Innovation/clinical-
trials-and-results/clinical-trials-and-results.aspx
– Relation with healthcare professionals
> Responsible Lobbying Factsheet G4-16 G4-24 G4-DMA G4-SO6
T : Trust

36 — SANOFI
 Patient safety
1
Our approach Our 2016 progress

Patient safety is the primary focus of our Objectives 2016 progress and actions
Global Pharmacovigilance and
Epidemiology (GPE), quality and Protect product • Sanofi continuously improves the oversight of
safety through pharmacovigilance data sources:
anti-counterfeiting teams. GPE monitors research projects were initiated to develop methodologies
pharmacovigilance
continuously the safety of our products for assessing digital media content (big data) as
in order to help determine their best
a complementary source of safety signal detection
and epidemiology analysis. 2
conditions of use.
Our approach endeavors guaranteeing Ensure that • The Quality Fundamentals e-learning program has been
all employees in place company-wide for several years.
quality at each phase of a product’s
embrace the VALUE CREATED
life cycle, from the earliest stages of
fundamentals T Close to 94,000 people had been trained
development to the distribution of of quality by the end of 2016.
products to sales channels: this is the
responsibility of Sanofi’s quality
organizations. Lastly, because we are
Combat • Sanofi improves sampling, analysis and data collection for
counterfeit Sanofi products.
3
counterfeiting
concerned about the threat to patient VALUE CREATED
safety posed by counterfeit medicines, T Since it was opened in 2008, more than

Sanofi is involved in assisting 30,000 entries have been recorded at the Central
Anti-Counterfeit Laboratory for the analysis of potential
enforcement authorities in combatting counterfeit products.
counterfeit drugs.

Quality management external stakeholders, particularly We also strive to ensure optimal

patients and consumers. Our quality product security: controlled transport
Sanofi’s quality approach is designed team is dedicated to ensuring that conditions and anti-counterfeit
to ensure that we provide safe and products and services provided are measures, such as tamper evidence
effective products that are developed, fully compliant with all requirements, and authentication technologies, and
manufactured, distributed and marketed efficacious, safe and easy to use. We serialization. Our organization and
in compliance with regulatory use a mature risk management priorities adapt to evolutions in the 5
requirements and internal company process, handling quality issues regulatory environment and company
standards worldwide. Our quality systems including recalls(1) when necessary strategy. Our innovation mindset is
are under the responsibility of the Global and identifying emerging quality risks, illustrated by the key role we play in
Chief Quality Officer, who has direct taking all necessary measures to avoid supporting digital health software
access to the CEO, both signatories of them or mitigate their potential development, while at the same time
our Global Quality Policy. This highlights consequences. We regularly monitor ensuring all applications are compliant
our commitment to patient safety and the quality performance of our own with applicable legal requirements
product quality worldwide, and supports entities and key suppliers or to help optimize service to users.
all Sanofi employees in upholding our subcontractors, particularly through (1) Rate of batches recalled for quality reasons (number
of batches of commercial products recalled in a given
quality fundamentals. The Global audits, and take appropriate corrective year vs total number of batches of commercial products
Quality vision encompasses five key and preventive measures if necessary. released in the same year) : 0.27% (vs 0.34% in 2015).

areas: quality systems, inspection

readiness, quality risk management, VALUE CREATED
quality performance and quality culture, T We are inspected by regulatory

and is fully aligned with the Company authorities, with 365 inspections
2020 roadmap. Our quality organization in 2016 in all entities and a steady
is a necessary contributor to our increase over the recent years (see
business, bringing value to internal and table below).

Audits and inspections of pharmaceutical regulated activities

2015 2016

Number of regulatory inspections 335 365

Number of internal audits 249 252

Number of audits of suppliers of active 262

273
pharmaceutical ingredients
Number of audits of Contract 272
288
Manufacturing Organizations (CMOs)

G4-15 G4-DMA G4-PR1 G4-PR3

T : Trust

37 — SANOFI
5. Performance

Pharmacovigilance: monitoring provides physicians, healthcare both clinical development and product
product safety to protect patients professionals and patients with life cycle management in order to
comprehensive, up-to-date safety ensure the completeness of our safety
Sanofi’s Global Pharmacovigilance and information, including potential risks data collection process and the
Epidemiology (GPE) organization associated with a product. effectiveness of our safety evaluations
monitors the safety of our products To maximize our knowledge about the in compliance with all applicable
worldwide: prescription medicines use of our portfolio under real-life regulations and policies, including
vaccines, consumer health products, conditions, Sanofi’s GPE Department stringent data privacy protection rules.
generics, and medical devices. Among has set up an effective global We also make available safety
its many activities, GPE assesses organization to collect information on our products through
continuously the benefit-risk profile of pharmacovigilance data from all our Sanofi websites (go to the section
our products at every stage of their life sources of information. We have “country” of the Sanofi corporate
cycle in order to determine, in close established strong interactions with website to select the country of your
relation with the health authorities, stakeholders worldwide (i.e. patients choice).
the best conditions of their use, and and healthcare professionals) during

G4-15 G4-DMA G4-PR1 G4-PR3

More:
> Quality Policy
> Quality Management Systems Factsheet G4-15 G4-56 G4-DMA G4-PR1
> Continuity of Activities and Supplies Factsheet G4-DMA G4-PR1
> Fighting Counterfeit Medicines Factsheet G4-DMA G4-PR3
> Medicine Identification, Authentication and Traceability – Serialization
Factsheet G4-DMA G4-PR3
> Pharmacovigilance: Monitoring Product Safety to Protect Patients Factsheet
G4-DMA G4-PR3

38 — SANOFI
5.3.2 Access to collaborating with stakeholders to healthcare systems. Given the growing
extend the availability of quality concerns over rising healthcare costs,
1
Heathcare for healthcare solutions and bringing we have developed an approach
innovation to patients, healthcare to pricing that reflects our continued
the Underserved systems, society and budgets. With a efforts to act in a transparent manner
diverse portfolio and a global footprint, and to support patient access while
Sanofi is committed to its vision of our business needs the flexibility to minimizing our contribution to
meeting the health needs of the highest address country- and brand-specific healthcare inflation. Our pricing model
possible number of patients worldwide. issues, such as diversity in local must reflect that and enable us
Today, access to quality healthcare is economies, health systems and supply to continue to advance scientific 2
beyond the reach of around a third of chain. Sanofi believes that knowledge and bring innovative
the world’s population. We constantly pharmaceutical innovation brings treatments to patients around the
work to drive down that figure, value to patients, our society and our world.

KPIs of value creation

3

My Child Matters:
In 2016,

400
In 2016, more since its initiation,
the e-diabete 60 projects
than 241
million 4
people benefited program implemented
in 45 countries,
from our access active in 15,000 healthcare million malaria
programs in more attacks treated
than 90 countries 13 African professionals trained
by ASAQ Winthrop®
and 50,000 children
countries treated since 2007
5

Sanofi collaboration

42
with DNDi
to eliminate In 2016,
sleeping sickness: Sanofi Patient €30 million
since 2001, Connection in the US: invested in R&D
million doses
of IPV standalone
more than 36 million Over 170,000 to fight malaria,
people screened people included in tuberculosis,
delivered to UNICEF leishmaniasis and
and over this program in 2016
for GAVI countries sleeping sickness
200,000 patients
in 2016
received lifesaving
treatments

G4-DMA G4-SO1 G4-EC7 G4-EC8

39 — SANOFI
5. Performance

Foster Access to Healthcare for Underserved Patients

Our approach We have substantial expertise in UN Sustainable Development Goals

infectious diseases, rare diseases and target of reducing premature deaths
Sanofi’s extensive portfolio of innovative NCDs, and we want to contribute to the from NCDs by 2030. 22 companies,
medicines, vaccines and therapeutic Goals 3 “Good health and well-being” including Sanofi, the World Bank and
solutions helps treat and prevent and 17 “Partnerships for the goals” of the Union for International Cancer
diseases that threaten millions of lives, the UN SDGs with a specific focus on Control (UICC) have joined forces to
and in this way we make a sustained underserved populations. endeavor to overcome the barriers to
contribution to meeting global health NCD prevention and care in low and
challenges. The world is experiencing a lower-middle income countries.
shift from infectious diseases to chronic
non-communicable diseases (NCDs), VALUE CREATED
due to progress in treatments and Achieving global access to healthcare ATH In 2016, more than 241 million

increased vaccination coverage, and for all raises complex questions that the people benefited from our access
the development of unhealthy lifestyles. pharmaceuticals industry cannot programs in more than 90 countries,
answer alone. In recognition of that including:
challenge, Sanofi pools its expertise •m ore than 90 million patients
with diverse private and public received diagnosis, vaccination,
partners. We are a member of the AAI, treatment, or disease
launched at the World Economic Forum self-management training;
in Davos on January 18, 2017. This •m ore than 151 million people
global partnership works towards the reached by awareness campaigns;
•m ore than 275,000 healthcare
professionals trained.

Our objective and priorities

1 OBJECTIVE 3 PRIORITIES
Improve access to healthcare and high-quality 1 Delivering innovative medicines
medications for underserved populations and vaccines to address unmet
in our fields of expertise medical needs

• Serving the needs of patients with 2 Development of new business/affordability

non-communicable diseases models to improve access to healthcare

• Contributing to the eradication, elimination

and control of some infectious diseases 3 Strengthening primary healthcare systems
(capacity building, etc.)

Our actions in the table page 41 (Our 2016 progress) focus on targeting
the three priorities, identified with the corresponding red numbers.

G4-DMA G4-SO1 G4-DMA G4-EC7 G4-EC8

ATH : Access to Healthcare

40 — SANOFI
 Our 2016 progress

Objectives 2016 progress and actions 1

Serving the needs • Diabetes
of underserved/ 3 Sanofi is a Kids and Diabetes in Schools (KiDS) partner, supporting children with type 1 diabetes in a school setting

vulnerable and raising awareness of healthy lifestyles among schoolchildren. By end 2016, KiDS had been launched in four
patients with countries: India (2013), Brazil (2014), Pakistan (2016) and the United Arab Emirates (2016).
non-communicable VALUE CREATED
diseases ATH In India and Brazil, a total of 53 schools, involving 44,000 children and 4,500 teachers involved in the KiDS

program.
3 Sanofi supports the e-diabete program, dedicated to training healthcare professionals in Africa. 2
VALUE CREATED
ATH In 2016, the e-diabete program was active in 13 African countries.

• Mental Health
3 Our FAST (Fight Against Stigma)-branded initiative, jointly led with the World Association of Social Psychiatry, aims to
improve access to mental healthcare in low and middle-income countries (Bolivia, Cameroon, Madagascar, Morocco,
Armenia, Mauritania and Myanmar) and fight stigmatization.
VALUE CREATED 3
ATHThe FAST initiative has helped raise awareness on mental health among 650,000 people, including
22,000 people seen in consultation, and training of more than 800 healthcare professionals in seven countries.

• Oncology
3 Our Sanofi Espoir Foundation has been running the My Child Matters program for more than ten years, aiming
to improve access to treatment and care for children with cancer.
VALUE CREATED
ATH Since My Child Matters initiation, 60 projects in 45 countries have contributed to training around
4
15,000 healthcare professionals and treating 50,000 children.

• Multi-disease actions
2 In Ghana and the Philippines we have been part of a pilot public-private collaboration since 2014, supporting
access to non-communicable disease treatments through tiered-pricing policies, developed in accordance with local
legal requirements.
VALUE CREATED
ATH Thousands of patients who face affordability barriers are provided with differentially discounted prices for

medicines to treat NCDs.

5
Contribute to • R&D investment for some infectious diseases
the eradication, 1 Sanofi invested €30 million in R&D to fight malaria, tuberculosis, leishmaniasis and sleeping sickness.
elimination • Polio
and control of 2 Through the price mechanism developed with the Bill & Melinda Gates Foundation, we provide significant
infectious diseases quantities of inactivated polio vaccine (IPV) for delivery in routine immunization, with the aim of eradicating the
disease.
VALUE CREATED
ATH In 2016, Sanofi Pasteur delivered 42 million doses of IPV standalone to UNICEF for GAVI (Global Alliance

for Vaccine & Immunization) countries.

• Human African trypanosomiasis (HAT) – sleeping sickness

1 2 3 Sanofi has partnered with the WHO since 2001 to address several neglected tropical diseases, including HAT.
Sanofi’s contribution includes providing treatments at no cost, supporting the development of local capacities and
collaborating with the Drugs for Neglected Diseases Initiative (DNDi) to develop a new oral treatment. Thanks to these
efforts, we are getting ever closer to the objective of eliminating the disease as a public health problem by 2020. For
the period 2001-2016, our commitment represents financial support in the amount of $75 million, or $5 million annually.
VALUE CREATED
ATH Since 2001, more than 36 million people have been screened and over 200,000 patients have received

lifesaving treatments.

• Malaria
1 In collaboration with Medicines for Malaria Venture (MMV), we are investigating and developing OZ439/Ferroquine,
a single-dose treatment that would offer an alternative to artemisinin-based treatments and their growing resistance.
2 Our ASAQ Winthrop® drug, developed with DNDi and for which we did not seek patent protection, is supplied
at preferential pricing.
VALUE CREATED
ATH Since its launch in 2007, ASAQ Winthrop® has enabled the treatment of over 400 million malaria attacks,

including more than 43 million in 2016.

3 In collaboration with national malaria control programs, ministries of Education and NGOs, we developed the
Schoolchildren Against Malaria program, in order to promote prevention behavior in schools in Africa.
VALUE CREATED
ATH In 2016, the program was still active in Cameroon, Gabon, Mozambique with nearly 10,000 children and

school staff benefiting from awareness information sessions.

ATH : Access to Healthcare

41 — SANOFI
5. Performance

Our 2016 progress

Objectives 2016 progress and actions

Contribute to • Tuberculosis (TB)

the eradication, 1 Sanofi is maintaining its efforts to develop new and simplified treatments. Sanofi is a member of the TB Drug

elimination Accelerator collaboration that aims to accelerate the discovery and development of novel compounds against TB.
and control of VALUE CREATED
infectious diseases ATH In 2014, the US FDA approved rifapentine in combination with isoniazid for a new indication for the treatment

of latent tuberculosis infection, simplifying the existing treatment regimen.

• Dengue
1 Sanofi Pasteur launched the first vaccine against dengue, Dengvaxia®.
VALUE CREATED
ATH As of December 2016, Dengvaxia® had been approved in 13 Asian and Latin American endemic countries.
3 In Malaysia, we have been collaborating with the ministries of Health and Education since 2011 through our
Dengue Patrol program. This program aims to educate schoolchildren about dengue and empower them to take
action in dengue prevention activities.
VALUE CREATED
ATH As of 2016, more than 250 primary and secondary schools (i.e. more than 12,500 students) were involved

and 7,900 dengue patrollers had reached out to more than 200,000 people through preventive activities.

Our commitment to continued Fighting antimicrobial Sanofi Patient Connection

vaccine discovery resistance in the US

In 2016, Sanofi agreed to Principles of Sanofi’s continued commitment to Sanofi Patient Connection is a
Collaboration with the Oswaldo Cruz developing innovative treatments for comprehensive patient access and
Foundation (Fiocruz) and the Walter infectious diseases was demonstrated support program in the US, connecting
Reed Army Institute of Research in 2016 when we signed the patients to insurance options,
(WRAIR) on the development of a Declaration on Antimicrobial Resistance medication at no cost when eligible,
potential Zika vaccine. The (AMR). The Declaration is a major and additional services. In 2016,
collaboration could cover process milestone in the global response to the 171,185 people were assisted across
development, vaccine characterization, threat of drug resistance. Signatory the program’s services, bringing the
epidemiological studies, pre-clinical companies for the first time agreed on total number of beneficiaries since its
and clinical vaccine evaluation, and a common set of principles to guide launch in 2012 to more than 1 million.
clinical assay optimization. Our R&D the global fight against drug resistance. In 2016, through the program’s
commitment in vaccines is also 13 pharmaceutical companies, Reimbursement Connection services,
illustrated by our contribution to the including Sanofi, presented a roadmap insurance coverage was identified for
Coalition for Epidemic Preparedness for four key AMR commitments they 48,405 patients, and 47,031 patients
Innovations (CEPI) launched in January pledge to deliver by 2020: were assisted in transitioning to
2017 which aims to prevent emerging • reduce the environmental impact healthcare insurance. The same year,
infectious disease outbreaks from from the production of antibiotics; the program’s Patient Assistance
becoming humanitarian crises. • help ensure antibiotics are used only Connection component, made
by patients who need them; possible by the Sanofi Foundation for
• improve access to current and future North America, provided medications,
antibiotics, vaccines and diagnostics; valued at approximately $264 million,
• explore new opportunities for open at no cost to 68,273 eligible patients.
collaborations between industry and
the public sector to address challenges
in the research and development of
new antibiotics, vaccines, and
diagnostics.

G4-DMA G4-SO1 G4-DMA G4-EC7 G4-EC8

More: > Fighting Tuberculosis Factsheet

> Access to Healthcare Position Paper > Epilepsy and Mental Illness Factsheet
> Access to Medicine Direction > Addressing the Needs of Rare Disease
Programs 2016 Factsheet G4-DMA Patients Around the World Factsheet
G4-SO1 > Sanofi’s Commitment and
> Access to Vaccines 2016 Factsheet Contribution to the UN Sustainable
> Access to Healthcare Programs Development Goals Factsheet
Developed by our Affiliates Factsheet > 2016 Sanofi Communication on
G4-24 G4-DMA G4-SO1 Progress and Attestation of External
> Fighting Malaria Factsheet Assessment G4-15
> Fighting Neglected Tropical Diseases > Sanofi Espoir Foundation Annual
Factsheet Report
ATH : Access to Healthcare

42 — SANOFI
 Our pricing principles to enhance transparency
and drug accessibility 1

As one of the world’s largest

Our pricing principles
pharmaceutical companies, today we
are sharing the principles we follow
when setting prices:
• clear rationale for pricing globally at
the launch of a new medicine that 2
takes into consideration a holistic
assessment of value, availability of
similar treatment options, affordability
and any other unique factor at the
time of launch;
• limited price increases in the US on
our medicines;
• greater transparency in the US around
3
our pricing decisions.

These principles demonstrate Sanofi’s

commitment to patient access and
affordability, a sustainable healthcare
system and greater transparency in our
pricing actions. Moreover, our position 4
supports an environment that will
enable us to continue to advance
scientific knowledge and bring
innovative treatments to patients
worldwide.

More:
> Our Prescription Medicine Pricing
Policy
> Sanofi Pricing Principles for the US

43 — SANOFI
5. Performance

5.3.3 Engage with employees to participate in local Our actions contribute to the Goals:
programs for underserved populations 3 “Good health and well-being”,
Communities and to support initiatives dedicated to 4 “Quality education”, 5 “Gender
the next generation, in areas like equality”, 8 “Decent work and
Sanofi is committed to developing education or employability. This CSR economic growth” and 17 “Partnerships
the communities where the Company strategy creates value for both society for the goals” of the UN SDG.
operates, including the community of and our business. The sustainable links
our employees. We also want to make we build strengthen Sanofi’s employee
the ecosystem around our sites more engagement, ease recruitment,
inclusive and sustainable for our local attraction and retention, especially
communities. We encourage our among the younger generation.

KPIs of value creation

Our “Take Care In India,

Over 600 students
250 & Bwel!” 72 benefited from Sanofi
top leaders, program for volunteer Genzyme’s
including ExCom employees employees enrolled collaboration with
implemented in

40
members & their in activities University of
leadership teams, on behalf Massachusetts
attended a of 56 NGOs, Boston’s College
“Challenge your bias” thanks to the launch of Science and
program of the Volunteer Mathematics (CSM)
countries Platform

In 2016, Enfants de Sanofi:

Sanofi supports
more than 174 families 1,217,900 jobs
5,000 students supported in and generates around

€51.6 bn
took part 34 countries,
in work-study and 3,400 children
programs benefited
run by our from collective health
affiliates or education actions of gross value
worldwide in 17 countries
added worldwide

G4-DMA G4-SO1 G4-DMA G4-EC7 G4-EC8

44 — SANOFI
 Develop human capital
1
Our approach Human capital strategy
Engage and develop people to support Sanofi 2020 roadmap
In an increasingly complex
environment, Sanofi is transforming its
business model, organization, culture
and ways of working. Our Human
MAXIMIZE ORGANIZATION DEVELOP CAPABILITIES DEVELOP EVOLVE
Capital Strategy is closely linked to our EFFECTIVENESS FOR GROWTH SANOFI LEADERS SANOFI CULTURE
2020 roadmap and takes a far-reaching • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 2
approach, embracing Sanofi’s entire Sanofi Sanofi has the right Sanofi leaders drive Sanofi empowers
is a competitive, people, with deep their business and and engages its
people agenda. Our HR function will be globally aligned, lean functional skills, develop their people people to perform
organization, with able to cooperate to success, with and be at their best,
key to driving its execution, supported clear focus, transversally. integrity. to serve patients
by its “One Sanofi, One HR” concept accountability and stakeholders.
and agility.
and global technology platform. It aims
to align HR practices across Sanofi,
promising fairness and efficiency for all
employees and managers. “Challenge your bias” program opportunities, salary increases) with the
3
Sanofi’s human capital strategy goal of becoming even more inclusive
is based on four pillars that aim This program focuses on the benefits of and fully leveraging collective
to engage and develop our people diversity (gender and beyond) and the intelligence.
in support of our strategic roadmap. potential negative impact of a
non-diverse organization on revenues VALUE CREATED
and employee engagement. It also S Sanofi ranked among the Top 100

aims to raise awareness of potential Most in Demand Employers by LinkedIn: 4

bias in our people-decisions (hiring, no. 48 in Europe, Middle-East and Africa
promotion, nominations, exposure (EMEA) and no. 93 in North America

Our 2016 progress

Objectives 2016 progress and actions

5
1. Maximize • Simplification and specialization of the organizational model favoring clearer accountabilities.
organization
effectiveness • Development of flexibility in our operations: implementation of Sanofi Business Services, a new global function
delivering best in class services for internal customers and external third parties.

• Adaptation of the organization to the reshaped portfolio: integration of new organizations (CHC, Vaccines Europe).

2. Develop •D
 evelopment of strategic workforce planning and identification of key areas of expertise, including:
capabilities for Global Marketing, Market Access, Medical and Digital.
growth
• Consistent growth of “Sanofi Leaders®” based on our Lead Model:
– continuing the Education journey for Executive leaders;
– expansion of the One global Sanofi curriculum to leaders and managers.
VALUE CREATED
S 4,000+ participants in Global Leadership since 2013.

3. Develop Sanofi • Strengthening Sanofi leadership pipeline

leaders VALUE CREATED
S Target: staff 80% of our roles internally.

• Systematic talent reviews to build succession pipeline

VALUE CREATED
S 62% of global key positions have a successor, ready now or to be further developed.

• Diversity & inclusive leadership as part of our culture journey

VALUE CREATED
S 250 top leaders, including ExCom members and their leadership teams, attended a “Challenge your bias”
program. Further rollout in 2017 developed.

4. Evolve Sanofi • Supporting performance and cultural shift through reward strategy:
culture – individual variable remuneration fully aligned with company performance (sales, BOI, R&D milestones);
– LTI program revised to reinforce engagement on long-term company and shareholder objectives;
– employee Share plan to strengthen engagement.
VALUE CREATED
S 24,000+ employees in more than 80 countries participated in “Action 2016” (capital increase for employees)
1.4% of capital owned by employees as of December 31, 2016.

G4-15 G4-DMA G4-LA10

S : Social

45 — SANOFI
5. Performance

Health and safety (H&S) in the workplace

Our H&S approach campaigns are often linked to events Take Care & BWel!
organized on sites, such as the Take
Sanofi’s HSE Department ensures that Care & BWel! program (Link to Benefits promote health and prevent or
the Company’s health, safety and highlight). We carry out in-depth cause delay the onset of chronic diseases by
environment policy is applied across analysis of accidents designed to help focusing on three key pillars: balanced
the Company, including suppliers prevent future incidents and strengthen nutrition, regular physical activity and
working at our sites. All Sanofi sites and safety culture. These activities are key to prevention of non-communicable
entities demonstrated compliance with building a robust safety culture and diseases. By end 2016, the program was
the HSE policy’s 78 strict rules by ensuring a low accident rate. in place in 40 countries in Europe,
carrying out audits and in-depth visits. Asia-Pacific, Africa, South America and
VALUE CREATED North America. Sanofi’s objective is to
VALUE CREATED S In 2016, occupational accident continue the expansion of this program
TIn 2016, 49(1) Sanofi sites by helping sites implement good
rate with lost time was stable
underwent a full audit and 177(1)
compared to 2015, with a frequency practices and monitor changes in
in-depth preventive or targeted
visits were carried out with the rate of 1.7(2). employee behaviors by promoting the
support of technical experts. use of e-health tools.
(2) Excluding Merial. The number of accidents with lost
time equal or superior to one day over a 12-month period
All employees receive HSE training at relative to a million hours. Home to workplace accidents VALUE CREATED
for non-mobile employees are not included. However,
S Take Care & BWel! program
on-boarding and throughout their these accidents are included for travelling sales staff, in
career. Year-round communication line with reporting rules. The 2015 results were recalculated for employees implemented in
on the basis of the Company’s end-2016 structure for the
(1) Number of audits/visits excluding Merial purposes of the comparison. 40 countries.

Sustain ecosystems around Sanofi

Our approach around our sites, building long-lasting • focusing actions on the most
relationships with them and therefore underserved populations and
Sanofi believes it has a responsibility creating a beneficial bond. participating in initiatives in the areas
to contribute to the sustainable Our approach is based on several key of education or employability for new
development of the communities principles: job-seekers;
• listening and dialoguing with local •e  ngaging our employees on concrete
stakeholders; actions.

Our 2016 progress

Objectives 2016 progress and actions

Build long-term • Facilitate stakeholder panels globally and locally:

relationships with – international Stakeholder Committee aims at improving Sanofi’s CSR practices by listening to stakeholders’
concerns, maintaining transparent and respectful dialogue and co-developing recommendations and initiatives;
our communities
– local initiatives, such as the Access to Healthcare Stakeholders Committee in Egypt.
• Perform materiality analysis both globally and locally. Based on country specificities and in line with Sanofi CSR
strategy, each affiliate defines its local approach to stakeholder consultation.

More:
> Health & Safety in the workplace Factsheet G4-DMA G4-LA5 G4-LA6 G4-LA7
G4-LA8
> See Chapter 4 of the 2016 Document de référence for:
http://en.sanofi.com/Images/CSR_Chapter4_Document_reference2016.pdf
– Compensation G4-LA2
– Training career development G4-DMA G4-LA9 G4-LA10 G4-LA11
– Social dialogue G4-11
S : Social
– Social Charter G4-15 G4-56
T : Trust

46 — SANOFI
 Our 2016 progress

Objectives 2016 progress and actions 1

Build collaborations • Support education
with school – Sanofi is one of the corporate members of the Deshpande Center Corporate Program which helps MIT’s most
talented researchers develop innovative technologies in the lab and bring them to the marketplace.
and universities
worldwide VALUE CREATED
S 12 new projects were supported in 2016, thanks to the contributions of Sanofi, as well as other corporate
sponsors and individual donors.

– Sanofi Innovation Awards program aims to encourage academic investigators in some of the most prestigious
universities in the US to collaborate with Sanofi scientists to quickly advance their ideas about innovative 2
therapeutic solutions for patients towards the clinic. Through this program, Sanofi US provides funding for highly
innovative early stage ideas in a broad range of therapeutic areas.
VALUE CREATED
S So far, Sanofi has funded 44 iAward projects through this program, including a new round of 20 projects
selected in 2016.

– Sanofi Biogenius Canada aims to challenge high school students to carry out ground-breaking research projects
in the field of biotechnology.
VALUE CREATED 3
S 171 students participated in this program.

– Genzyme promotes science education for students of all ages, from elementary to graduate school, and develops
initiatives for science teachers, students and the general public.
VALUE CREATED
S Around 700 students benefited from Sanofi and Genzyme’s collaboration with University of Massachusetts
Boston’s College of Science and Mathematics (CSM).

– Training, internships and workshop offers for students in many countries where the Company has operations. 4
VALUE CREATED
S In 2016, more than 5,000 students took part in work-study programs run by our affiliates worldwide.

Support economic • Measurement of Sanofi’s socio-economic footprint

development – First socio-economic study carried out to measure Sanofi’s footprint, both globally and locally.
• Support suppliers
– SME plan (“plan PME”) in France, finalized in 2015 to support small- and medium-sized local companies in job
creation, in particular in the health, industrial and services sectors.
5
Support • Employee volunteering
communities – The Sanofi Season of Solidarity, organized through the Sanofi foundations, is an annual international event
dedicated to volunteering, giving employees an opportunity to meet NGOs and organize solidarity activities for
through employee
their benefit.
volunteering and – Support for local initiatives.
donations from
VALUE CREATED
the Company
S In India, 72 volunteer employees enrolled in activities on behalf of 56 NGOs, thanks to the launch of the
Volunteer Platform (India is the first pilot country).
S In the Czech Republic and Slovakia, 131 employees signed up for volunteer events and supported
12 non-profit community organizations through the More Than Words Can Say program.
S In the US, 505 employees involved in volunteer activities, 27+ events with local community partners through
the Sanofi Genzyme GIVE program. For the Sanofi US Bridgewater site (New Jersey), the volunteering program
involved 457 volunteers in 32 projects.

Support our • Enfants de Sanofi (Children of Sanofi) association

employees’children The purpose of this not-for-profit organization, funded by both Sanofi and employees, is to help employees’ children
who are experiencing medical problems, social issues or educational difficulties.
VALUE CREATED
S This program provided individual support to 174 families from 34 countries in 2016.
S 3,400 children from 17 countries participated in collective health/education actions.
SIn 2016, special support was offered to Venezuela in the context of its severe political and economic crisis.
$35,000 donation (non-perishable food boxes and school supplies) for 250 employees’ children and their families.

47 — SANOFI
5. Performance

Sanofi’s socio-economic footprint •D  irect impacts: Sanofi’s own impacts consumption (wages paid by Sanofi
– our jobs and the added value and its chain of suppliers) and by
Sanofi’s socio-economic footprint goes generated by our activities; public administration expenditure
far beyond the direct impacts • Indirect impacts: full time year jobs and (taxes paid by the Company and its
generated by its economic activity. GVA (gross value added) supported chain of suppliers).
To better understand our contributions within our supply chain and service The study concludes that Sanofi
across the world, we performed an providers – 1st tier suppliers, as well as supports 1,217,900 jobs and generates
analysis in 2015 to estimate the effects 2nd, 3rd, 4th, etc. tier suppliers; and around €51.6 billion of gross value
of our economic flows. Three different • Induced impacts: the impacts added worldwide.
types of impacts were measured: supported by household

The outcomes of our economic footprint analysis EC

Total gross value

added
€11.5 bn €23.5 bn
€ €16.6 bn
direct
gross value
indirect
gross value
induced
gross value
€51.6 bn
X2.1
added
added 88%
X 10.7
added
local anchorage
for 1 € of gross value
added by Sanofi, for 1 job at Sanofi,
10.7 jobs Total employment
€2.1 is also
generated are supported effect
worldwide worldwide
104,200 348,100 765,600 1,217,900
direct indirect induced jobs
employment employment employment
80%
local anchorage(1)

TOP 5 MAIN SECTORS IMPACTED WORLDWIDE (TOTAL: 1,217,900 JOBS)

19% 14% 11% 8% 8%

Business and financial Chemical products Education and Public administration Agriculture
services (pharma industry) public health services

Source: 2014 Data from Sanofi; Utopies calculation (LOCAL FOOTPRINT®)

(1) Local anchorage: “What remains in the country where it was initially generated”, calculated by the following impact ratio:
Local anchorage = Impacts generated in the relevant geographical area by the activity/Total impacts generated by the activity worldwide.

Generation of Healthy as drugs, prostitution and crime. In Simón Bolívar preteen school in Villa
Families – Colombia 2014, Sanofi identified 41 employees Rica, introducing a prevention program
living in vulnerable conditions and the for children affected by social problems
Over 50% of employees at Villa Rica, plant launched Generation of Healthy in their community. It then focused on
Sanofi’s columbian plant, live in the Families, a program aimed at working with our employees and their
nearby town, one of the areas most developing greater social actions with families to help enhance performance
affected by the country’s armed conflict the local community. The program first at work by improving their quality of life.
and by attendant social problems such focused on working with children at the

G4-EC7 G4-EC8

Related content in this report: > Working with School and Universities
> 3.6 CSR strategy Factsheet
> 4.5 Stakeholder engagement > Local Social Impact Factsheet
More: G4-DMA G4-EC8 G4-SO1
> Chapter 4 of the 2016 Document > Sanofi’s Socio-economic Footprint
de référence: http://en.sanofi.com/ Factsheet G4-EC1 G4-EC8
Images/CSR_Chapter4_Document_ > Stakeholder Engagement Factsheet
reference2016.pdf G4-16 G4-19 G4-24 G4-25 G4-26
> Employee Volunteering Factsheet G4-27
EC : Economic

48 — SANOFI
5.3.4 Healthy Planet:
1
our environmental performance

Sanofi environmental footprint environment (PIE), waste management including suppliers and value chain;
and addressing issues around the •d  eliver outstanding launches:
Because the environment we live in consequences of climate change and integration of HSE criteria, particularly
directly affects our health, at Sanofi health. Our actions contribute to the packaging and eco-design in
we are committed to monitoring our Goals 6 “Clean water and sanitation”, manufacturing in the pre- 2
environmental impact. From the raw 7 “Affordable and clean energy”, industrialization phase;
materials we use in our products to 12 “Responsible consumption and • s ustain innovation: promote greener
their potential end-of-life impact on production”, 13 “Climate action” and products throughout their full life
human health and the environment, we 17 “Partnerships for the goals” of the UN cycle, and anticipate the health
strive to limit potential negative effects SDG. impact of climate change, while
caused by our medicines, devices and These subjects are part of our HSE mitigating the impact of Sanofi’s
services throughout their full life cycle. strategy, defined in close cooperation activities;
We have developed a far-reaching with SBS-Procurement, Industrial Affairs, • s implify the organization:
3
project, Planet Mobilization, to define R&D, CSR and other operational units. standardization, simplification and
the Company’s 2015-2025 Our project is aligned with the alignment on shared global
environmental strategy along the entire four pillars of the 2020 roadmap in environmental visions and objectives
value chain, involving all our order to support and facilitate the – GHG emissions, water, waste,
stakeholders. We focus on four priorities: execution of our company strategy: biodiversity.
GHG emissions, water management • reshape the portfolio: assessment
and pharmaceuticals in the of products’ environmental footprint, 4

KPIs of value creation

5
2010-2020 2010-2020 19.4%
objective
for water
objective for CO2 CO2 emission
reduction
86%
emission of our
use reduction: reduction (scope 1 and Total

–25%
intercontinental
(scope 1 scope 2) recycling
shipments
and scope 2): in 2016 rate of

72%
by sea
compared
–20% to 2010

of the waste
generated
Voluntary by our industrial
18.3% Program for assessment Contributor
sites, including
water decreasing of the to take-back
incineration
consumption cardboard, environmental programs
with energy
reduction PVC and impact of of unused
recovery
in 2016 aluminum medicines
compared in our 45 active in dozens
packaging pharmaceutical of countries
to 2010
ingredients

G4-15

49 — SANOFI
5. Performance

Reduce green house gas emissions

Our approach Our 2016 progress

As a global pharmaceutical company, Objectives 2016 progress and actions

we have a responsibility to reduce
our own carbon footprint and to Reduce energy • By end 2016, Sanofi’s total energy consumption was 13.6% less
consumption compared to 2010.
contribute to a significant decrease
• We signed a new agreement with Suez, pursuing an efficiency
in the overall health sector footprint; and optimization energy project, and now including water and
currently between 3% and 5% waste management (circular economy, etc).
of OECD countries’ CO2 emissions. • A total of 15 sites obtained ISO 50001 certification
Objective 2010-2020: achieve a 20% and 18 sites underwent energy audits.

reduction in the combined scope 1 Reduce • In 2016, excluding emissions from sales representatives’ vehicles,
and scope 2 CO2 emissions for CO2 emissions we achieved a 19.4% reduction in our scope 1 and 2 CO2
industrial and R&D sites, and sales force compared to 2010.

vehicles. This involves a responsible • We encourage the use of sea transportation instead of air
shipments whenever possible allowing savings of 260,000 tons
energy approach (use less, use better, of CO2 per year. To date, 86% of our intercontinental shipments
use greener) and a responsible are by sea.
transportation policy (for goods and • We encourage employees to use carpooling, electric cars and
public transportation.
people). We are also working on
reducing our scope 3 emissions. Improve our • In 2016, Sanofi improved its scope 3 emissions calculation in order
calculation to enhance the accuracy of the data.
of scope 3 emissions

Scope 3 categories Vehicle fleet renewal and A trigeneration unit at

eco-driving training our Scoppito site in Italy
Sanofi’s total scope 1 and 2 is stable
compared to 2015. In 2016, we progressively renewed The trigeneration unit built at our
our vehicle fleet for enhanced fuel Scoppito site in Italy simultaneously
In 2016, Sanofi’s total scope 3 CO2 efficiency with the aim of meeting produces three forms of energy:
emissions stood at 8,732,292 tCO2e,
a limit of 120 g CO2/km. Around electricity, hot water and cold water.
representing 90% of its CO2 emissions
worldwide. 59% of our total vehicle fleet is now One of four facilities being built in Italy,
compliant, including two-wheel vehicles this new trigeneration plant is expected
Approximately 50% of our CO2 in several Asian countries (India, to reduce the site’s energy costs by 36%
emissions footprint is related to raw Indonesia, Vietnam, etc.). These results and CO2 emissions by 12%, enhancing
material (packaging items and active were also achieved via the our competitiveness.
ingredients and excipients).
“eco-driving” training which reduces
fuel consumption and has been
promoted across Sanofi’s affiliates.
The low-carbon cars fleet include a
total of almost 3,200 vehicles worldwide:
2,111 cars running on biofuel (mostly
in Brazil); 1,081 hybrid cars (mostly
in Japan); and 2 fully electric cars.

G4-DMA G4-EN15 G4-EN16 G4-EN17 G4-EN19

More:
> Carbon Footprint: CO2 Emissions – Scope 1 and 2 Factsheet G4-DMA G4-EN15
G4-EN16 G4-EN17 G4-EN18 G4-EN19
> CO2 Emissions – Scope 3 Factsheet G4-DMA G4-EN17 G4-EN19
> Protection of the Atmosphere Factsheet G4-DMA G4-EN20 G4-EN21
> Circular Economy Factsheet G4-DMA G4-EN23 G4-EN25 G4-EN27
> HSE Management System Factsheet G4-56
> Transporting Medicines Factsheet G4-DMA G4-EN17
> Sustainable Building Charter G4-DMA G4-15
> Biodiversity and Biopiracy Factsheet G4-DMA G4-EN11 G4-EN12 G4-EN13
G4-EN14 G4-EN26

50 — SANOFI
 Streamline water use and PIE management
1
Our approach Our 2016 progress

With Sanofi’s industrial activities Objectives 2016 progress and actions

requiring clean water, we are fully
aware of the critical challenge posed Reduce water withdrawal • In 2016, we achieved an 18.3% reduction in water
consumption compared to 2010, the baseline year.
by the world’s dwindling fresh water
• We carried out in-depth studies to identify locations where
resources. We also put a strong focus our activities may be impacted by water-related risks.
on the challenge of preventing 2
pharmaceuticals from impacting the Assess the environmental • We developed a tool for assessing environmental risks
impact of effluents from related to emissions of active ingredients in wastewater
environment. Pharmaceuticals may consistent with applicable legal requirements.
our manufacturing sites
enter the environment through sources,
including effluents from industrial Measure the potential • We completed voluntary environmental assessments
facilities, medicines excreted by environmental impact for 45 APIs on marketed drugs.
patients, or incorrect disposal of of our medicines
unused and expired medicines.
We have therefore implemented a series
Contribute to research • We co-founded a research project at the University of 3
on pharmaceuticals in Montpellier (France) on the use of an emerging approach
of programs to reduce our potential the environment (PIE) to study the environmental effects of pharmaceuticals.
impact on water use by reducing our
consumption, measuring and limiting Develop programs to • We managed a platform for healthcare professionals and
promote the proper use patients on the responsible use of antibiotics.
the impact of our effluents and
of medicines
medicines, supporting the proper use
of medicines and take back programs Support targeted • We contributed to the implementation of take-back
for unused ones. Sanofi aims to achieve programs to take back programs in many countries in Europe, Asia, North and 4
South America.
a 25% reduction in water withdrawal by unused and expired
2020, and to continuously progress in medicines
assessing and managing potential
impact at industrial sites.

Conducting in-depth studies affected by water-related risk and Analysing wastewater effluents 5
of Sanofi sites in water scarcity 2 sites consuming more than at Sanofi sites
and water stress areas 1 million m3 per year.
Facilities with high potential risk In recent years, Sanofi has conducted
Since 2014, Sanofi has fine-tuned its (9 sites, representing 9% of the a risk assessment program evaluating
methods of identifying locations where Company water withdrawal in 2016) pharmaceuticals in effluent emitted,
activities may be impacted by are required to define an action plan consistent with applicable legal
water-related risks. to reduce water use on site, including requirements, from seven chemistry
For all potentially impacted facilities, appropriate targets and monitoring. sites. No indication of specific
a four-year program was developed A self-assessment tool was also environmental risks was demonstrated
to launch at the end of 2015. In 2016, developed for sites, focusing on for 17 priority pharmaceuticals
we identified 10 sites for which further chemistry sites and injectable manufactured in those sites. Further
investigations are necessary to manufacturing sites, as well as sites to this program, an environmental risk
determine whether they may be in Brazil, Colombia and China. prediction tool for Pharma sites was
developed in 2016 to support
prioritization of PIE risk evaluation. In
2017, 100% priority sites, i.e. 11 Pharma
sites, are expected to be evaluated.

VALUE CREATED
EN In 2016, Sanofi consumed

43.3 million m3 water, roughly stable

compared to 2015, 76% is used by
chemistry, biopharmaceutical sites.

G4-DMA G4-EN26

More: > Pharmaceuticals In the Environment >S

 oil and Ground Water Protection
> Water Resource Management (PIE) Factsheet G4-DMA G4-EN26 Factsheet G4-DMA G4-EN24
Factsheet G4-DMA G4-EN8 G4-EN9 G4-EN27 G4-EN26
G4-EN10 G4-EN22 > Green Chemistry Factsheet G4-EN1 > HSE Management System Factsheet
> Disposal of Unused Medicines and G4-EN2 G4-EN27 G4-56
User Recommendations Factsheet > Implementation of REACH Regulation > HSE Policy G4-EN15 G4-56
G4-DMA G4-EN27 Factsheet

EN : Environmental

51 — SANOFI
5. Performance

Reduce waste

Our approach Our 2016 progress

As a pharmaceutical company, we are Objectives 2016 progress and actions

committed to both reducing the
potential environmental and health Make the best use • We carry out studies to limit package sizes in order to
of blister packaging decrease cardboard, PVC and aluminum consumption.
impacts of waste and improving
materials
resource efficiency. Sanofi takes a
multifaceted approach to limiting the Optimize use of solvents • Sanofi has developed tools and performance indicators to
quantities of waste generated by our for better waste optimize the use of solvents in our industrial processes
(chemical synthesis, cleaning equipment, etc.).
activities. We focus on optimizing management
packaging and use of solvents and
raising awareness among employees, Support take-back • We encourage the use of incineration instead of landfill to
programs to collect dispose of our products.
especially on food waste, encouraging
unused medicines
appropriate sorting, reuse and
recycling to help minimize the need to
extract additional natural resources. We
have designed a waste management
program with specific procedures to
VALUE CREATED
characterize process streams and Sanofi awarded EN We achieved a total recycling
identify, organize, collect, sort, treat, for its packaging
rate of 72% of our industrial waste,
store, transport and dispose of different
including incineration with energy
types of waste as appropriate and in In 2016, Sanofi received a French
recovery (estimated at 27% internally).
compliance with applicable legal packaging award: the “Oscar de
Our landfill rate is estimated at 5%.
requirements. l’emballage”. In the winning project,
the PVC blister was replaced by a
Inspired by circular economy principles, carton wedge, and the overall volume
our Planet Mobilization project of the carton folding box reduced
highlights robust initiatives and aims by more than 40%. This represents an
to identify opportunities to utilize waste overall annual drop in PVC use of
from industrial processes, and 80 tons and a 50% reduction in the
especially unavoidable waste, as number of pallets transported. Our
a potential resource. Among its ambition is to replace plastic trays with
recommendations is sending less than carton-made systems for secondary
1% of operational waste to landfills and packaging, within the limits of
achieving a recycling rate of more than acceptance by end users (medical
90% by 2025. staff and patients).

More:
> Waste Management Factsheet G4-DMA G4-EN23 G4-EN25
> Packaging Factsheet G4-DMA G4-EN1 G4-EN27 G4-EN28
> T ransporting Medicines and Vaccines Factsheet G4-DMA G4-EN17
> Pharmaceuticals In the Environment Factsheet G4-DMA G4-EN26 G4-EN27
> Disposal of Unused Medicines Factsheet G4-DMA G4-EN27
>C  ircular Economy Factsheet G4-DMA G4-EN23 G4-EN25 G4-EN27
> Office Printing G4-DMA G4-EN23
EN : Environmental

52 — SANOFI
 Addressing issues around climate change and health
SEVERE WEATHER AIR POLLUTION
Injuries, fatalities, mental health impacts Asthma, cardiovascular disease
1

EXTREME HEAT CHANGES IN VECTOR ECOLOGY

Heat-related illness and death, Malaria, dengue, encephalitis, hantavirus,
cardiovascular failure Rift Valley fever, Lyme disease, chikungunya,
West Nile virus

2
ENVIRONMENTAL DEGRADATION INCREASING ALLERGENS
Forced migration, civil conflict, Respiratory allergies, asthma
mental health impacts

WATER QUALITY IMPACTS

WATER AND FOOD SUPPLY IMPACTS
Malnutrition diarrheal disease
Cholera, cryptosporidiosis, campylobacter,
leptospirosis, harmful algal blooms
3

Source: Center for Disease Control and Prevention (CDC-Atlanta, USA).

Our approach Our 2016 progress

4
Climate change may have direct Objectives 2016 progress and actions
health impacts as it can lead to
weather phenomena, heatwaves or Provide solutions designed • We launched a new vaccine to combat dengue.
extreme cold, food shortages, difficulties to help prevent and • We promoted access to affordable treatment and
respond to impacts of launched prevention programs in the areas most
in accessing drinking water and affected by malaria.
climate change on health
increased air-pollution. Climate change
also induces indirect effects by creating Raise awareness among • After being an official partner of COP21, we attended
favorable conditions for the our stakeholders about the the COP22 meeting in Marrakech to highlight Sanofi’s 5
environmental commitments and achievements.
intensification and spread of consequences of climate
change on health • Sanofi is among the pharmaceutical companies that
vector-borne diseases. Sanofi is supported the report of the 2015 Commission on Health
committed to addressing issues around and Climate Change published in The Lancet.
environmental/climate change and • We organized for healthcare professionals a continuous
medical education program in India on “Pollen allergies
health: continue R&D efforts for some adapting to a changing climate”.
climate-sensitive diseases, supporting
communities through emergency
assistance and raising awareness
among our stakeholders.

Raising awareness on outdoor/ associated with mortality and morbidity VALUE CREATED
indoor pollutions and allergies for respiratory and cardiovascular EN Number of children in the Dengue

diseases. We organized local and Patrol program: as of 2016 more than

In May 2016, Sanofi CHC organized the regional scientific meetings in some 250 primary and secondary schools
Allergy and Air Pollution Training Meeting of the territories where we operate, (e.g. more than 12,500 students) were
in Singapore, attended by 52 physicians with the aim of increasing awareness educated against dengue and
from 21 countries. Experts emphasized of the impact of air pollution on allergic empowered to take action in dengue
that global warming affects the start, respiratory conditions. Over prevention activities
duration and intensity of the pollen 4,000 physicians attended, with EN Over 4,000 physicians attended

season and that air pollution is a further 5,400 reached through the training meeting on allergies
Web meetings and magazines. and air pollution, with a further
5,400 reached through web meetings
and magazines

Related content on this report: More: > Fighting Neglected Tropical Diseases
> 5.3.2 Access to Healthcare for the > Sanofi’s Risks and Opportunities Factsheet
Underserved Related to Climate Change Factsheet > Climate Change and Health
> 4.4 A proactive and structured risk > Fighting Malaria Factsheet Factsheet G4-DMA G4-EN15
management approach > Fighting Tuberculosis Factsheet G4-EN16 G4-EN17 G4-EN19

EN : Environmental

53 — SANOFI

1704233_SANOFI_RAI_GB.indd 53 29/06/2017 11:46

 About this report
—
The rationale behind • T he United Nations Global Compact Reporting process
this report (UNGC): Sanofi has embraced the and assurance
This report has been developed for a fundamental principles of this platform This report covers the twelve months
wide range of stakeholders, including since we became a member in 2000. ending December 31, 2016. Some
shareholders and investors, employees, recent developments relating to our
local communities, authorities, patients, Other publications activities that took place in the period
suppliers, healthcare professionals, •M
 ore information is available on our till our annual General Assemble on
NGOs and CSR rating agencies. corporate website, including a May 10, 2017 are also mentioned. We
Download center containing more are confident in the overall reliability of
This first Integrated Report is informed by than 60 Factsheets. the data reported, but recognize that
the reference framework published by •M
 ore detailed information on our some of the information is subject to an
the International Integrated Reporting activities, governance, risk factors and element of uncertainty, inherent in
Council (IIRC). consolidated financial statements is limitations associated with measuring
Sanofi’s Integrated Report also complies contained in our annual report on and calculating data.
with the most widely recognized Form 20-F.
international standards: •M
 ore information for our shareholders Independent verification of CSR data:
• T he Global Reporting Initiative can be found in our 2016 shareholder Each year, the accuracy of our CSR
(GRI, http://www.globalreporting.org: handbook. data is reviewed by independent
our reporting principles are based on auditors. A list of quantitative indicators,
the GRI G4 Sustainability Reporting the reporting methodology and the
Guidelines in accordance with the limited assurance report of one of our
‘Core’ option). Statutory Auditors can be found in the
Factsheet CSR Indicators Table and
Auditor’s Report.

Glossary
AAI Access Accelerated Initiative GEM General Medicine and Emerging NCD Non-Communicable Disease
AFEP Association Française Markets NGO Non-Governmental Organization
des Entreprises Privées GBU Global Business Unit NME New Molecular Entity
API Active pharmaceutical GPE Global Pharmacovigilance OECD Organisation for Economic
ingredients and Epidemiology Co-operation and Development
BEC Bioethics Committee GRI Global Reporting Initiative OTC Over The Counter
BOI Business Operating Income HCO Healthcare Organizations PIE Pharmaceuticals in the
CDP Carbon Disclosure Project HCP Healthcare Providers Environment
CEO Chief Executive Officer HSE Health Safety and Environment PhRMA Pharmaceutical Research
CFO Chief Financial Officer HR Human Resources and Manufacturers of America
CHC Consumer Healthcare IFPMA International Federation of PVC Polyvinyl chloride
CMO Chief Medical Officer Pharmaceutical Manufacturer R&D Research & Development
CSR Corporate Social Responsibility Associations SBS Sanofi Business Services
DJSI Dow Jones Sustainability Index IIRC International Integrated TB Tuberculosis
DNDi Drugs For Neglected Diseases Reporting Council TfS Together for sustainability
initiative IPV Inactivated Polio Vaccine UN United Nations
E&BI Ethics and Business Integrity IPCC International Panel on Climate UNGC United Nations Global Compact
EFPIA European Federation of Change UN SDG United Nations Sustainable
Pharmaceutical Industry LTI Long-Term Incentive Development Goals
Association M&A Merger and Acquisitions US United States of America
EM Emerging Markets MEDEF Mouvement des Entreprises VP Vice-President
EPP Established Prescription de France WHO World Health Organization
Products MIT Massachusetts Institute of
EU European Union Technology 3Rs principles : R
 eplacement,
FDA Food and Drug Administration MS Multiple Sclerosis Reduction, and
GAVI Global Alliance for Vaccine MSA Medical and Scientific Refinement principles
and Immunization Associations of animal use

G4-18 G4-32

54 — SANOFI
 Forward-Looking Statements
This Integrated Report contains forward-looking statements as defined in the whether and when to approve any drug, device or biological application
Private Securities Litigation Reform Act of 1995, as amended. Forward looking that may be filed for any such product candidates as well as their decisions
statements are statements that are not historical facts. These statements regarding labelling and other matters that could affect the availability
include projections and estimates and their underlying assumptions, or commercial potential of such product candidates, the absence of
statements regarding plans, objectives, intentions and expectations with guarantee that the product candidates if approved will be commercially
respect to future financial results, events, operations, services, product successful, the future approval and commercial success of therapeutic
development and potential, and statements regarding future performance. alternatives, Sanofi’s ability to benefit from external growth opportunities
Forward-looking statements are generally identified by the words “expects”, and/or obtain regulatory clearances, risks associated with intellectual
“anticipates”, “believes”, “intends”, “estimates”, “plans” and similar expressions. property and any related pending or future litigation and the ultimate
Although Sanofi’s management believes that the expectations reflected in outcome of such litigation, trends in exchange rates and prevailing interest
such forward-looking statements are reasonable, investors are cautioned that rates, volatile economic conditions, the impact of cost containment
forward-looking information and statements are subject to various risks and initiatives and subsequent changes thereto, the average number of
uncertainties, many of which are difficult to predict and generally beyond the shares outstanding as well as those discussed or identified in the public
control of Sanofi, that could cause actual results and developments to differ filings with the SEC and the AMF made by Sanofi, including those listed
materially from those expressed in, or implied or projected by, the under “Risk Factors” and “Cautionary Statement Regarding Forward-Looking
forward-looking information and statements. These risks and uncertainties Statements” in Sanofi’s Annual Report on Form 20-F for the year ended
include among other things, the uncertainties inherent in research and December 31, 2016. Other than as required by applicable law,
development, future clinical data and analysis, including post marketing, Sanofi does not undertake any obligation to update or revise any
decisions by regulatory authorities, such as the FDA or the EMA, regarding forward-looking information or statements.

55 — SANOFI
 Appendices
—
GRI-G4 content index
General
Page/Location External
standard Disclosure
of the information assurance
disclosures
Strategy and analysis

Provide a statement from the most senior decision-maker of

the organization (such as CEO, chair, or equivalent senior position)
G4-1 On this report p. 5
about the relevance of sustainability to the organization and the
organization’s strategy for addressing sustainability.

Organizational profile

G4-3 Front cover Report the name of the organization.

G4-4 On this report p. 2, p. 9 Report the primary brands, products, and services.

G4-5 Back cover Report the location of the organization’s headquarters.

Report the number of countries where the organization operates,

and names of countries where either the organization has
G4-6 On this report p. 2, p. 3
significant operations or that are specifically relevant to the
sustainability topics covered in the report.

2016 Form 20-F - Item 4.A History and

G4-7 Development of the Company
Report the nature of ownership and legal form.

On this report p. 3, p. 10, p. 11, p. 12, p. 13

Report the markets served (including geographic breakdown,
G4-8 2016 Form 20-F - Item 4.B Business
sectors served, and types of customers and beneficiaries).
Overview

On this report p. 9

2016 Form 20-F - Item 4.C Organizational
G4-9 Structure and 4.D Property, Plant and
Report the scale of the organization.
Equipment

2016 Chapter 4 Document de référence

Report the total workforce by employment type, contract, region,
G4-10 – Section 4.1.1 Employment CSR Indicators
gender.
table and Auditor’s report Factsheet

2016 Chapter 4 Document de référence

– Section 4.1.3 Social Dialogue CSR Report the percentage of total employees covered by collective
G4-11 Indicators table and Auditor’s report bargaining agreements.
Factsheet

G4-12 On this report p. 8, p. 20, p. 34 Describe the organization’s supply chain.

Report any significant changes during the reporting period regarding

G4-13 On this report p. 9, p. 24
the organization’s size, structure, ownership, or its supply chain.

Report whether and how the precautionary approach or principle

G4-14 On this report p. 19, p. 32, p. 33
is addressed by the organization.

List externally developed economic, environmental and social

On this report p. 2, p. 17, p. 32, p. 33,
G4-15 p. 37, p. 38, p. 42, p. 45, p. 46, p. 49
charters, principles, or other initiatives to which the organization
subscribes or which it endorses.

List memberships of associations (such as industry associations)

G4-16 On this report p22, p33, p36, p48
and national or international advocacy organizations.

Identified material aspects and boundaries

List all entities included in the organization’s consolidated financial

G4-17 2016 Form 20-F – F105 to F109
statements or equivalent documents.

Explain the process for defining the report content and the Aspect
G4-18 On this report p. 1, p. 16, p. 22, p. 54
Boundaries.

List all the material Aspects identified in the process for defining
G4-19 On this report p. 15, p. 16, p. 22, p. 48
report content.

On this report p. 15, p. 16, p. 22

For each material Aspect, report the Aspect Boundary within
G4-20 CSR Indicators table and Auditor’s
the organization.
Report Factsheet

On this report p. 15, p. 16, p. 22

For each material Aspect, report the Aspect Boundary outside the
G4-21 CSR Indicators table and Auditor’s
organization.
Report Factsheet

56 — SANOFI
 CSR Indicators table and Auditor’s Report the effect of any restatements of information provided
G4-22 Report Factsheet in previous reports, and the reasons for such restatements.

On this report p. 12

Report significant changes from previous reporting periods
G4-23 CSR Indicators table and Auditor’s
in the Scope and Aspect Boundaries.
Report Factsheet

Stakeholder engagement

On this report p. 16, p. 22, p. 33, p. 36,

G4-24 p. 42, p. 48
Provide a list of stakeholder groups engaged by the organization.

Report the basis for identification and selection of stakeholders

G4-25 On this report p. 15, p. 22, p. 31, p. 48
with whom to engage.

Report the organization’s approach to stakeholder engagement,

On this report p. 15, p. 16, p. 22, p. 31, including frequency of engagement by type and by stakeholder
G4-26 p. 48 group, and an indication of whether any of the engagement was
undertaken specifically as part of the report preparation process.

Report key topics and concerns that have been raised through
stakeholder engagement, and how the organization has
On this report p. 15, p. 16, p. 22, p. 24,
G4-27 p. 31, p. 48
responded to those key topics and concerns, including through
its reporting. Report the stakeholder groups that raised each of the
key topics and concerns.

Report profile

CSR Indicators table and Auditor’s Reporting period (such as fiscal or calendar year) for information
G4-28 Report Factsheet provided.

G4-29 2015 Date of most recent previous report (if any).

G4-30 Annually Reporting cycle (such as annual, biennial).

Provide the contact point for questions regarding the report

G4-31 [email protected]
or its contents.

G4-32 On this report p. 54 Report the ‘in accordance’ option the organization has chosen.

CSR Indicators table and Auditor’s Report the organization’s policy and current practice with regard
G4-33 Report Factsheet to seeking external assurance for the report.

Governance

Report the governance structure of the organization, including

committees of the highest governance body. Identify any
G4-34 On this report p. 18, p. 35
committees responsible for decision-making on economic,
environmental and social impacts.

Ethics and integrity

On this report p. 3, p. 16, p. 18, p. 22,

Describe the organization’s values, principles, standards and
G4-56 p. 32, p. 33, p. 34, p. 35, p. 36, p. 38, p. 46,
norms of behavior such as codes of conduct and codes of ethics.
p. 50, p. 51

Specific
Page/Location External
standard Omissions Disclosure
of the information assurance
disclosures
Category: economic

Material aspect: indirect economic impacts

On this report p. 39, p. 40, p. 42, p. 44,

G4-DMA p. 48
Disclosures on management approach.

On this report p. 39, p. 40, p. 42, p. 44, Development and impact of infrastructure
G4-EC7 p. 48 investments and services supported.

On this report p. 39, p. 40, p. 42, p. 44, Significant indirect economic impacts, including
G4-EC8 p. 48 the extent of impacts.

Material aspect: procurement practices

G4-DMA On this report p. 34 Disclosures on management approach.

On this report p. 34

2016 Chapter 4 Document de Proportion of spending on local suppliers
G4-EC9 référence – Section 4.3.3 at significant locations of operation.
Subcontracting and Suppliers

57 — SANOFI
 Specific
Page/Location External
standard Omissions Disclosure
of the information assurance
disclosures
Category: environmental

Material aspect: water

2016 Chapter 4 Document de

G4-DMA référence – Section 4.2.3 Environmental Disclosures on management approach.
information

On this report p. 51

G4-EN8 CSR Indicators table and Auditor’s X Total water withdrawal by source.
Report Factsheet

On this report p. 51

Water sources significantly affected by withdrawal
G4-EN9 CSR Indicators table and Auditor’s
of water.
Report Factsheet

Percentage and total volume of water recycled

G4-EN10 On this report p. 51
and reused.

Material aspect: emissions

On this report p. 50

2016 Chapter 4 Document de
G4-DMA référence – Section 4.2.3
Disclosures on management approach.
Environmental information

On this report p. 3, p. 50, p. 53

Direct greenhouse gas (GHG) emissions
G4-EN15 CSR Indicators table and Auditor’s X
(scope 1).
report Factsheet

On this report p. 3, p. 50, p. 53

Energy indirect greenhouse gas (GHG) emissions
G4-EN16 CSR Indicators table and Auditor’s X
(scope 2).
report Factsheet

Other indirect greenhouse gas (GHG) emissions

G4-EN17 On this report p. 50, p. 52, p. 53 X
(scope 3).

G4-EN18 On this report p. 50, p. 53 Greenhouse gas (GHG) emissions intensity.

G4-EN19 On this report p. 50 Reduction of greenhouse gas (GHG) emissions.

On this report p. 50

G4-EN20 CSR Indicators table and Auditor’s Emissions of ozone-depleting substances (ODS).
report Factsheet

On this report p. 50

G4-EN21 CSR Indicators table and Auditor’s X NOx, SOx, and other significant air emissions.
report Factsheet

Material aspect: effluents and waste

On this report p. 51, p. 52

2016 Chapter 4 Document de
G4-DMA référence – Section 4.2.3
Disclosures on management approach.
Environmental information

On this report p. 51

2016 Chapter 4 Document de
référence – Section 4.2.3
G4-EN22 Environmental information
X Total water discharge by quality and destination.
CSR Indicators table and Auditor’s
Report Factsheet

On this report p. 50, p. 52

2016 Chapter 4 Document de
référence – Section 4.2.3 Total weight of waste by type and disposal
G4-EN23 Environmental information
X
method.
CSR Indicators table and Auditor’s
Report Factsheet

G4-EN24 On this report p. 51 Total number and volume of significant spills.

Weight of transported, imported, exported, or

On this report p. 50, p. 52
treated waste deemed hazardous under the
2016 Chapter 4 Document de
G4-EN25 référence – Section 4.2.3
terms of the Basel Convention 2 Annex I, II, III, and
VIII, and percentage of transported waste shipped
Environmental information
internationally.

On this report p. 50, p. 51, p. 52

2016 Chapter 4 Document de Identity, size, protected status, and biodiversity
référence – Section 4.2.3 Environmental value of water bodies and related habitats
G4-EN26 information significantly affected by the organization’s
CSR Indicators table and Auditor’s discharges of water and runoff.
Report Factsheet

58 — SANOFI
 Material aspect: products and services

2016 Chapter 4 Document de

G4-DMA référence – Section 4.2.3 Disclosures on management approach.
Environmental information

On this report p. 50, p. 51, p. 52

Extent of impact mitigation of environmental
G4-EN27 CSR Indicators table and Auditor’s
impacts of products and services.
Report Factsheet

Percentage of products sold and their packaging

G4-EN28 On this report p. 52
materials that are reclaimed by category.

Material aspect: supplier environmental assessment

On this report p. 34

2016 Chapter 4 Document de
G4-DMA référence – Section 4.3.3
Disclosures on management approach.
Subcontracting and suppliers

On this report p. 34

Percentage of new suppliers that were screened
G4-EN32 CSR Indicators table and Auditor’s
using environmental criteria.
Report Factsheet

Significant actual and potential negative

G4-EN33 On this report p. 34 environmental impacts in the supply chain
and actions taken.

Specific
Page/Location External
standard Omissions Disclosure
of the information assurance
disclosures
Category social

Subcategory: labor practices and decent work

Material aspect: training and education

2016 Chapter 4 Document de

G4-DMA référence – Section 4.1.4 Training and Disclosures on management approach.
career development

CSR Indicators table and Auditor’s Average hours of training per year per employee
G4-LA9 Report Factsheet
X
by gender, and by employee category.

Programs for skills management and lifelong

learning that support the continued employability
G4-LA10 On this report p. 45, p. 46
of employees and assist them in managing
career endings.

Percentage of employees receiving regular

G4-LA11 On this report p. 46 performance and career development reviews,
by gender and by employee category.

Material aspect: supplier assessment for labor practices

2016 Chapter 4 Document de

G4-DMA référence – Section 4.3.3 Disclosures on management approach.
Subcontracting and suppliers

On this report p. 34

Percentage of new suppliers that were screened
G4-LA14 CSR Indicators table and Auditor’s
using labor practices criteria.
Report Factsheet

Significant actual and potential negative impacts

G4-LA15 On this report p. 20, p. 34 for labor practices in the supply chain and
actions taken.

Subcategory: human rights

Material aspect: supplier human rights assessment

2016 Chapter 4 Document de

G4-DMA référence – Section 4.3.3 Disclosures on management approach.
Subcontracting and suppliers

On this report p. 34

Percentage of new suppliers that were screened
G4-HR10 CSR Indicators table and Auditor’s
using human rights criteria.
Report Factsheet

Significant actual and potential negative human

G4-HR11 On this report p. 32, p. 34 rights impacts in the supply chain and actions
take.

59 — SANOFI
 Subcategory: society

Material aspect: local communities

G4-DMA On this report p. 16, p. 40, p. 42, p. 44 Disclosures on management approach.

On this report p. 3, p. 16, p. 36, p. 39,

Percentage of operations with implemented local
p. 40, p. 42, p. 44, p. 48
G4-SO1 CSR Indicators table and Auditor’s
X community engagement, impact assessments,
and development programs.
Report Factsheet

CSR Indicators table and Auditor’s Operations with significant actual and potential
G4-SO2 Report Factsheet
X
negative impacts on local communities.

Material aspect: anti-corruption

On this report p. 33

2016 Chapter 4 Document de
G4-DMA référence – Section 4.3.4 Fair business
Disclosures on management approach.
practices

Total number and percentage of operations

G4-SO3 On this report p. 21 X assessed for risks related to corruption and the
significant risks identified.

On this report p. 33

Communication and training on anti-corruption
G4-SO4 CSR Indicators table and Auditor’s
policies and procedures.
Report Factsheet

Confirmed incidents of corruption and actions

G4-SO5 2016 Form 20-F – Item 8
taken.

Material aspect: public policy

G4-DMA On this report p. 36 Disclosures on management approach.

Total value of political contributions by country

G4-SO6 On this report p. 33, p. 36 X
and recipient/beneficiary.

Material aspect: anti-competitive behavior

On this report p. 33

G4-DMA 2016 Form 20-F – Item 8
Disclosures on management approach.

Total number of legal actions for anti-competitive

On this report p. 33
G4-SO7 2016 Form 20-F – Item 8
behavior, anti-trust, and monopoly practices and
their outcomes.

Material aspect: compliance

G4-DMA 2016 Form 20-F – Item 8 Disclosures on management approach.

Monetary value of significant fines and total

G4-SO8 2016 Form 20-F – Item 8 number of non-monetary sanctions for
non-compliance with laws and regulations.

Material aspect: supplier assessment for impacts on society

2016 Chapter 4 Document de

G4-DMA référence – Section 4.3.3 Disclosures on management approach.
Subcontracting and suppliers

On this report p. 34

Percentage of new suppliers that were screened
G4-SO9 CSR Indicators table and Auditor’s
using criteria for impacts on society.
Report Factsheet

Significant actual and potential negative impacts

G4-SO10 On this report p. 34
on society in the supply chain and actions taken.

Sub-category: product responsibility

Material aspect: customer health and safety

G4-DMA On this report p. 35, p. 37, p. 38 Disclosures on management approach.

Percentage of significant product and service

G4-PR1 On this report p. 35, p. 37, p. 38 categories for which health and safety impacts
are assessed for improvement.
Total number of incidents of non-compliance with
regulations and voluntary codes concerning the
G4-PR2 On this report p. 35 health and safety impacts of products and
services during their life cycle, by type of
outcomes.

60 — SANOFI
 Material aspect: product and service labeling

On this report p. 37, p. 38

G4-DMA 2016 Form 20-F – Item 8
Disclosures on management approach.

Type of product and service information required

by the organization’s procedures for product and
G4-PR3 On this report p. 37, p. 38 service information and labeling, and percentage
of significant product and service categories
subject to such information requirements.
Total number of incidents of non-compliance with
regulations and voluntary codes concerning
G4-PR4 2016 Form 20-F – Item 8
product and service information and labeling,
by type of outcomes.

2016 Chapter 4 Document

Results of surveys measuring customer
G4-PR5 de référence – Section 4.3.2 Relation
satisfaction.
with stakeholders

Material aspect: marketing communications

G4-DMA 2016 Form 20-F – Item 8 Disclosures on management approach.

Total number of incidents of non-compliance with

regulations and voluntary codes concerning
G4-PR7 2016 Form 20-F – Item 8
marketing communications, including advertising,
promotion, and sponsorship, by type of outcomes.

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61 — SANOFI
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