Since 2012, environmental management at the Pelion Healthcare Group is organised based on the environmental policy adopted by the Management Board of Pelion S.A., providing for compliance with environmental protection laws and implementation of individual and proprietary projects in this area. As a member of the Global Compact community, Pelion pursues its environmental policy objectives by applying a precautionary approach to the natural environment, launching initiatives to promote environmental responsibility, and using and promoting environmentally friendly technologies. Environmental issues were also included in the Code of Ethics for Employees of Pelion Healthcare Group, adopted in 2013.

In 2014, no financial fines or non-financial sanctions for noncompliance with environmental protection regulations were imposed on the Pelion Healthcare Group. Similarly, no incidents with an adverse environmental impact were recorded.

Ecoproject Pelion:

• Compliance with environmental laws and other similar requirements applicable to the Company's operations;
• Mitigation of adverse environmental impacts of our operations through sustainable consumption of electricity, heat, and natural resources, paper in particular;
• Sustainable and environmentally safe waste management through sorting, setting aside and transfer for recycling or disposal;
• Promotion of sustainable attitudes and environmentally friendly conduct among employees and stakeholders;
• Continuous improvement of industrial processes and implementation of new technical and organisational solutions to reduce adverse environmental impacts.

Transport

• route optimisation and maximum utilisation of vehicle capacity thanks to synergies derived from cooperation between the business lines (combined deliveries),
• new vehicle fleet with economical engines,
• tele- and video-conferences, reducing the number of business trips,
• promotion of eco-driving – eco-driving manual and training for employees,
• carpooling – encouraging employees to commute to work together and share company cars for business trips as well as promotion of the Day Without Car.

Fuel consumption

Consumption of diesel oil rises year by year at the expense of gasoline. In 2014, consumption of gasoline accounted for 10.95%, and consumption of diesel oil reached 89.05%. In 2013, the figures stood at 13.53% and 86.47%, respectively. Higher consumption of fuels reported in 2014 relative to the previous years is driven by the Company’s growth and increased number of vehicles in the Company’s fleet.

The share of Euro 5-compliant vehicles in our fleet is steadily growing, while the number of Euro 3-compliant vehicles is decreasing as they are removed from service; in 2014, they accounted for only 0.14%. In 2014, the use of Euro 2-compliant vehicles was eliminated altogether.

OFFICE AND BUILDINGS:

• Electronic document and invoice circulation,
• Electronic newsletters and trade offers,
• e-lerning trainings,
• Promoting the use of electronic media for document distribution,
• Workflow system – accounting for leaves and business trips without hard copies,
• Electronic Christmas and Easter cards and invitations,
• Reduced paper consumption (centralised paper orders),
• Elimination of disposable catering supplies and packagings e.x. due to using bulk containers for bottled water,
• Gradual replacement of lighting with energy-saving types, installation of motion detectors in new buildings,
• Thermal-efficiency upgrade/new design,
• State-of-the-art, effective heating, ventilation and cooling systems,
• Sustainable management of space for heating in winter (advice for employees).

Consumption of paper (in reams)

In their daily work, employees try to reduce the consumption of paper by printing on both sides (as the stickers on printers would suggest), or by deciding not to print documents at all (as email footnotes or notes on documents would remind them). To control the use of paper to a greater degree, it is purchased centrally by one of the Group companies. It is difficult to obtain meaningful comparative data on paper consumption, as every year new companies decide to join the central purchasing system. At Pelion S.A. alone, the consumption of paper declined by 29%, and other companies representing different business lines also reported reduced paper consumption; for example at PGF Urtica it went down by more than 40%, and at PGF S.A. by over 4%.

As part of the Eco Project, the Ecoteam was established - a group of our employees who set on a mission to promote environmentally friendly solutions.

Members of the team organise environmental awareness projects all year round, encouraging all companies to ‘go green’. Projects delivered by the Ecoteam included the eco-driving manual as well as environmental advice and information displayed on the electronic notice board and published in company newsletters. The team initiates and executes most of the Company’s environmental protection projects, such as the collection of waste paper, spent toner cartridges, or batteries. Those projects are often meant to support the 'Dbam o Zdrowie' Foundation,

examples being:

Medication for Toners - a project which combines environmental protection and social responsibility, integrates employees around shared social objectives, and reinforces a positive image of the Pelion Healthcare Group among its trading partners.

Employees of each company collect spent toner cartridges, which are then sold as dangerous waste to a licensed collection and disposal operator. The funds are then transferred to the 'Dbam o Zdrowie' Foundation and spent on medication and medical supplies for a person or institution selected by the Company. The employees encourage commercial partners, friends and relatives to join the initiative.

Waste Paper Collection - the proceeds are also transferred to the 'Dbam o Zdrowie' Foundation.

Caps to Bags - the goal of the project is to support the Children’s Hospice and transfer to it all caps collected throughout the year. The amount of caps collected increased from 25 kg in 2013 (in the first year of the project) to 104 kg in 2014. The ‘Caps to Bags’ campaign is run by the Group companies based in Łódź.

Following the inclusion of a new entity to the Pelion Healthcare Group, Polbita Sp. z o.o., this report also takes account of its environmental impacts, specifying the amount of water used and wastewater produced by the chain of 243 Natura beauty stores and the Polbita Distribution Centre, which was 2,045.89 cubic meters in the period of November and December.

Medicinal products management:

• State-of-the-art logistics solutions to minimise the risk of impairment or loss of quality of the medicinal products, including a fleet of dedicated temperature-controlled vehicles for cold chain transport of drugs,
• Strict medicinal product expiry date management,
• Use of non-disposable packaging,
• New warehouse projects designed for energy efficiency,
• Cutting-edge electronic systems for pharmacy order processing,
• Sustainable management of non-disposable isothermal packaging,
• State-of-the-art sorting and picking lines to ensure faster order preparation for dispatch, and thus optimise transport processes
• Efficient use of cooling space

RETAIL:

• websites: www.doz.pl and www.vaistine.lt; application www.appteka.eu, a portion of orders executed online, which reduces the need for physical retail outlets and the related environmental burden,
• efficient management of information and promotional materials.

Waste management:

• collection of date-expired and damaged medicinal products by the Company and pharmacies,
• collection and sorting of waste for recycling and of waste electronic and electric equipment (toners, batteries, mobile phones, light bulbs)
• disposal of all waste under contracts with specialised operators.

Commitments for 2015:

• To continue activities of Ecoteam
• To continue initiatives: ‘Caps to Bags’, ‘Medication for Toners’, and waste paper collection regarding ‘Dbam o Zdrowie’ Foundation.