Sustainable Companies for the 21st Century Evolution of the Components of Sustainability for GlaxoSmithKline Dr. James Hagan Vice President Corporate Environment, Health & Safety April 23, 2002

2 GSK 100,000 People 120 Countries 105 Manufacturing Sites 23 R&D Sites $29.5 Billion in Sales

3 GSK Products Pharmaceuticals: Antibiotics, Anti-Depressants, AIDS, Diabetes, Respiratory, Vaccines Consumer: Aquafresh, Tums, Nicorette, Lucozade, Horlicks

4 SUSTAINABILITY  Environment  Social  Financial

5 Compliance  Strict Legal Compliance  Liability Avoidance  Ethical Considerations  Competitive Advantage

6 Regulations  Command & Control  Technology Driven  Standards Driven  Risk Based  Transparency

7 Environmental Measurement  Gross Measures - Visible Pollution  Parts per Million  Parts per Billion  Parts per Trillion  Molecular Analysis

8 SCOPE  Local  National  Global

9 Waste Management  Treatment/Disposal of Waste  Recovery/Recycle  Process Changes to Minimize/Eliminate Waste

10 Natural Resources  Process Efficiency  Renewable Resources  Natural Environmental Cycles

11 Sustainability Reporting  Company Confidential  Respond to requests  Annual Report Statement  Separate Environmental Report  Separate Social & Environment Report  Triple Bottom Line Report – Financial, Social, Environmental

12 Internal Control  Local Management  Senior Management Concern  Audit Committee of the Board  CSR Committee of the Board

13 External Stakeholders  Confrontation  Stand-off  One-way Communication  Dialogue  Stakeholder Groups - Dialogue on a range of issues

14 Social Responsibility  Corporate Philanthropy - wide view  Corporate Philanthropy - aligned with Business  Integral to Business - Access to Medicines  Integral to R&D - Developing Country Diseases  Partnerships with Stakeholders

15  Discover medicines for conventional diseases  Provide medicines for developing countries  Discover medicines for developing countries  Tailor medicines based on genetic make-up  Innovative “Manufacturing” Approaches Business Sustainability