Dear survey respondent, thank you for taking part in our Q3 2011 ICD Research Industry Survey, please

find a selection of key findings from the completed research as promised. This research is the result of an extensive survey drawn from our exclusive panel of leading buyers and suppliers in the industry. Complete survey results, with extensive segmentation and analysis, will be available for purchase in our Sustainability report in October. For more information, please send an email : icdreports@progressivedigitalmedia.com This Sustainability report provides you with a definitive analysis of what sustainability means to the industry and on how it is being implemented. Furthermore, this report not only grants access to the opinions and strategies of business decision makers and competitors, but also examines their actions surrounding sustainable procurement practices and marketing green initiatives. The report also provides access to information categorized by region, company type and sizes. ICD Research is a full-service market research consultancy providing full research capabilities both on and off-line. Our specialties include online research, qualitative and quantitative research, custom approach and actionable insights. We deliver our expertise across a broad range of industry sectors and product lifecycle areas. From product innovation, through brand management, to CRM; we develop full service research and analysis offerings that drive loyalty and lifetime value.

Base: All interviews Which of the following best describes your organization?

Percentage Pharma / biopharma / biotech company Contract research organization (CRO) Contract manufacturing organization (CMO) Other outsource provider to the pharma industry Supplier to pharmaceutical companies (materials, equipment, consultancy or service suppliers) 52% 7% 3% 5% 17%

IT vendor Trade body, academia or other industry observer Government / academia / public pharma research organization Others (please specify) North America Europe Asia-Pacific Rest of the World CEO / President / MD / Board member / C-level executive Director / VP / SVP Head of business unit Head of department Professional and technical Staff (e.g. lawyer, engineer, architect) Manager Staff Less than US$100 million US$100 million - US$1 billion More than US$1 billion Balancing financial, human and natural resources for long-term benefits Responsible use of natural resources Driving waste and inefficiency out of the supply chain Reducing carbon footprint Focusing on renewable energy resources Waste management Climate change, environmental, social and economic issues Engaging in long-term contracts with diverse suppliers Sustainable sourcing of raw materials Innovation in packaging design Restricting the use of hazardous chemicals None of these Dont know

2% 2% 6% 5% 39% 34% 20% 7% 23% 21% 7% 8% 15% 21% 6% 48% 17% 34% 51% 30% 36% 28% 20% 35% 23% 31% 28% 21% 31% 12% 3%

In which region do you operate?

What best describes your position in your organization?

What is your organization's annual global revenue in US dollars?

Which of the following best describes sustainability to your organization?

Other (please specify) 7% Please rate the following sustainability measures based on their level of implementation, where 1-Not implemented and 5- fully implemented? Not implemented 7% Reduced energy usage 2 10% 3 24% 4 28% Implemented 20% Not applicable 11% Not implemented 20% Increased use of renewable energy 2 15% 3 20% 4 16% Implemented 12% Not applicable 17% Not implemented 20% Implementation of green IT 2 14% 3 21% 4 16% Implemented 11% Not applicable 18% Not implemented 3% Remote conferencing and telecommunications 2 4% 3 15% 4 18% Implemented 53% Not applicable 7% Not implemented 12% Sustainable procurement policies 2 10% 3 24% 4 24% Implemented 16% Not applicable 13% Not implemented 17% Green building practices (LEED) 2 12% 3 17% 4 16%

Carbon footprint measurement

Reducing energy consumption in data centers

Investment in weight reduction and sustainable designs

Implemented Not applicable Not implemented 2 3 4 Implemented Not applicable Not implemented 2 3 4 Implemented Not applicable Not implemented 2 3 4 Implemented Not applicable Not implemented 2 3 4 Implemented Not applicable Not implemented 2 3 4 Implemented Not applicable Not implemented 2 3

15% 23% 23% 15% 13% 16% 12% 21% 12% 16% 18% 21% 12% 20% 16% 12% 20% 15% 7% 29% 9% 7% 19% 20% 25% 20% 10% 9% 19% 24% 20% 19% 8% 8% 16%

Composting and recycling methods

Water conservation

Nonhazardous waste management

What are the drivers which influence your organizations sustainability practices?

4 Implemented Not applicable Compliance with legislation Managing corporate reputation Cost savings and operational efficiency Strengthening competitive position Growth opportunities Air, water or other environmental pollution Depletion of non-renewable sources Pressure from non-governmental organizations (NGOs) Development of advanced technologies None of these Don't know Other (please specify) Financial resources

24% 29% 17% 56% 55% 75% 58% 56% 36% 15% 10% 38% 3% 3% 3% 61%

How important are the following pre-requisites for implementing sustainability within your organization?

What are the key barriers to your organization's sustainability practices?

Staff awareness Technical expertise Support from top management Focus on long term goal achievement Need for cost-effective and efficient supply-chain/logistics solutions Monitoring, measurement, analysis and evaluation Internal audits at planned intervals Risk assessment and mitigation None of these Don't know Other (please specify) Lack of commitment from top management Lack of metrics to measure effectiveness Lack of budget Decentralized procurement

68% 51% 61% 58% 51% 59% 37% 50% 3% 4% 2% 17% 36% 39% 13%

Difficult to obtain financing from banks for sustainable projects Low demand due to high cost Lack of staff expertise Stringent regulatory measures (e.g quality assurance and fair pricing ) Unethical pharmaceutical marketing practices and clinical trials High cost of drug development None of these Dont know Other (please specify) Environmental key performance indicators (EKPIs)

17% 28% 35% 30% 12% 32% 10% 7% 4% 16%

Which of the following do you use to monitor and measure the implementation of sustainability initiatives?

How do you expect your organization's sustainability management budget to change over the next 12 months?

Environmental management system accreditation Product life cycle assessment (LCA) study LEED rating systems Sustainability forestry initiative (SFI) European standards EC 953/2003 Pharmaceutical supply chain initiative (PSCI) Global reporting initiative (GRI) The carbon trust standard Electronic product code (EPC) Bar coding and database standards Eco-balance standard from BAFU Eco-efficiency rate (EER) None of these Don't know Other (please specify) Increase more than 25%

14% 20% 14% 5% 14% 25% 13% 8% 4% 19% 3% 10% 21% 25% 3% 6%

Increase between 11% and 25% Increase between 5% and 10% Increase less than 5% No change

11% 15% 12% 28%

How do you expect the adoption of sustainable practices to impact your profitability over the next year?

Decrease less than 5% Decrease between 5% and 10% Decrease between 11% and 25% Decrease more than 25% Don't know Increase profitability substantially

1% 0% 1% 0% 25% 7%

Following the implementation of sustainability initiatives, what cost saving targets will your company set in the next 12 months?

Increase profitability slightly No impact on profitability Reduce profitability slightly Reduce profitability substantially We are not implementing additional sustainability practices Don't know Less than 5% of total organizational expenditure

31% 22% 7% 2% 6% 24% 28%

5-10% 11-15% 16-20% More than 20% Don't know How important do you consider the following attributes for supplier engagement? Very important Certification and compliance with, ISO 14001 Important Moderately important Least important Don't know Not applicable Very important Reduction of energy consumption Important Moderately important Least important Don't know Not applicable Very important Reporting of carbon emissions

19% 6% 2% 1% 43% 21% 32% 18% 7% 13% 10% 28% 35% 15% 8% 7% 8% 18%

Effective minimization of water consumption

Effective minimization of waste

Effective health and safety (EHS) management system

Important Moderately important Least important Don't know Not applicable Very important Important Moderately important Least important Don't know Not applicable Very important Important Moderately important Least important Don't know Not applicable Very important Important Moderately important Least important Don't know Not applicable Very important Important Moderately important Least important Don't know Not applicable Very important Important Moderately important Least important Don't know Not applicable

23% 22% 15% 10% 11% 24% 28% 24% 8% 7% 9% 31% 33% 14% 6% 9% 7% 36% 30% 15% 4% 7% 8% 25% 33% 15% 10% 8% 10% 23% 34% 19% 9% 8% 7%

Recyclable or reusable product components

Ability to track sustainability in its supply chain

What is the current level of supplier engagement in sustainability initiatives within your organization?

Limited engagement Encouraged suppliers with some success Suppliers must meet specific sustainability criteria Do not engage suppliers Dont know Other (please specify) Over 50%

28% 23% 12% 15% 21% 1% 3%

What percentage of your organization's total procurement spending is on sustainable products and materials?

What design changes does your company plan to undertake for sustainable products and services?

41-50% 31-40% 21-30% 10-20% Less than 10% Dont know Volume reduction Compact size Use of single recyclable materials Innovative dispensing system Heat-sealable coating Rigid packaging (e.g thermoformed trays) Flexible barrier films None of these Don't know Other (please specify) Robotics Anti-counterfeiting and tamper-evident packaging (e.g Auto-ID technology) Advanced storage solutions and distribution (e.g cold chain storage solutions) Contract manufacturing Recyclable blister packs Biotechnology equipment and materials

2% 3% 7% 16% 24% 44% 28% 25% 17% 25% 10% 14% 13% 20% 31% 0% 4% 27% 19% 30% 11% 26%

Which of the following products and services does your sustainable procurement primarily focus on?

Telematics Advanced labeling solutions (e.g RFID tags, holograms and serialization) Water purification and wastewater treatment Extraction and fabrication of raw materials Green IT solutions R&D, clinical trials and development services Advanced imaging solutions (e.g nuclear imaging, mass spectrometry, etc) Advanced dispensing solutions (e.g electroporation, transdermal gels) None of these Don't know Other (please specify) Competitive advantage What are the major drivers of green marketing? International standard and management practices Avoid unwanted attention from regulators and lawyers Bring authenticity to the brand Efficiency and cost effectiveness Customer satisfaction Symbolism and status Align green marketing trend with organizations mission None of these Don't know Other (please specify) What are the steps being taken by your organization to Re-positioning as a green organization market its green credentials to its clients? Educational marketing messages Procuring third party endorsements and eco-certifications Adding a certification seal to the product Explaining cost-benefit of sustainability to clients Whitepapers and reports Embeding sustainability data in communication with mainstream investors Informal presentations

4% 19% 24% 11% 11% 37% 8% 10% 10% 21% 1% 54% 28% 21% 24% 52% 49% 29% 32% 4% 10% 1% 17%

36% 11% 11% 27% 29% 13% 42%

Which of the following media outlets does your organization use or plan to use for green marketing?

Dedicated sections in corporate website Communication with socially responsible investors Participating in sustainability ranking and/or indexes None of these Don't know Other (please specify) Online portals

23% 22% 16% 17% 9% 5% 17%

Trade magazines Television and video Direct mail Email and newsletters Sponsorship Webcasting Corporate and brand websites Social media and networking sites Conferences and events Public relations None of these Don't know Other (please specify)

24% 5% 17% 49% 12% 10% 37% 28% 31% 28% 17% 11% 1%

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