REPORT PROFILE

3.1 Reporting period for information provided

Reporting period is one calendar year. This report provides information for the years 2007, 2008 and 2009.

3.2 Date of most recent previous report

This is the first sustainability report published by Orion Corporation.

3.3 Reporting cycle

Orion Corporation plans to publish a sustainability report on an annual basis.

3.4 Contact point for questions regarding the report or its contents

The person responsible for report compilation at Orion Corporation is Anne Allo, Senior Communications Officer, tel. +358 10 426 3735, e-mail: anne.allo at orion.fi

REPORT SCOPE AND BOUNDARY

Orion’s sustainability report principally covers Group-wide operations. Measurement data is gathered from each operational location and grouped according to the Group structure. All Orion units involved in manufacturing are located in Finland, which means that the calculation of indicators such as material flows and related responsibilities are based on the processes of Finnish units. Orion does not have any storage facilities for raw materials or finished products outside Finland except for the consignment stock facilities of Orion Diagnostica in Sweden, the Check Republic and Slovakia. The foreign offices of the Group are marketing or liaison offices that market the pharmaceutical or diagnostic products, mainly in the country they are located in, and almost all of their employees are involved in marketing except for a few clerical employees working on financial administration and human resources.

In sustainability reporting, Orion follows the GRI guidance, principles, terms, indicators, calculation methods and structure as closely as possible. Since GRI has not yet issued a Sector Supplement for the pharmaceutical industry, Orion has chosen the applicable meters and indicators from GRI standard disclosures and supplemented them with calculated and descriptive indicators derived from Orion’s operations. These organisation-specific indicators are primarily related to product quality and product/patient safety.

3.5 Process for defining report content

Determining materiality

The indicators included in Orion’s sustainability reporting have been selected, supplemented and specified in working groups for economic, social and environmental responsibility. Members of the groups were selected to well represent all the different expertises areas present in the Group. The groups also specified the calculation methods used in reporting. Materiality was assessed indicator by indicator also when setting up a data management system for GRI-based reporting. The reporting infrastructure was supplied by ToFuture.

The members of the working groups participated in workshops headed by consultants who specialise in sustainability reporting. The working groups determined the relevance and identified key stakeholders expected to use the report. The views formed in the workshops were presented to the sustainability reporting steering group, which made a further assessment and approved the prioritizing, principles and boundaries used in this report as well as the key stakeholder groups. The steering group consists of three members from Orion’s Executive Management Board (Senior Vice President, Corporate Functions, Senior Vice President, Supply Chain and CFO), Vice President, Quality Assurance, Vice President, Communications, Project Manager responsible for sustainability reporting and the Senior Communications Officer responsible for the report compilation.

Prioritizing topics within the report

Emphasis on product responsibility,
patient safety and Orion employees
Due to the nature of Orion’s products and the industry, Orion considers product responsibility as a primary concern in its corporate responsibility. As a manufacturer of pharmaceutical and diagnostic products, Orion emphasises the responsibility for product safety, even though responsibility and caring are an integral, uncompromised and natural part of everything we do at Orion. The Supply Chain organisation with all its operations is linked to product safety. Orion’s basic mission is to build sustained well-being by providing products that promote health and quality of life and by providing guidance on the correct and proper use of Orion’s products. Orion’s support to patient organisations and the further training and coaching provided for healthcare professionals, in particular to doctors, nurses and pharmacy personnel, also largely falls in the scope of product responsibility.

Orion’s social responsibility places emphasis on the company’s employees. Orion employs highly educated professionals and wants to ensure that they are satisfied with Orion, their working conditions, work assignments and the way they are rewarded good work. Orion wants its employees to feel that they have opportunities for professional development and that their work is important for the society at large.

Orion’s environmental responsibility
places emphasis on materials use and energy
As regards environmental responsibility, the key themes at Orion include the chemicals and other materials used as raw materials and exipients in pharmaceutical manufacturing as well as cost-efficient and environmentally friendly materials management. Orion has made significant investments in process technology and methods to increase the efficiency of use and treatment of chemicals. While these investments have helped Orion reach performance levels significantly better than the minimum levels required by the environmental permits, the company has also attained significant economic value added with more efficient, economic and smart use of materials which also helps minimise adverse environmental impacts. In addition, operations in the middle and end of Orion’s supply chain use a lot of packaging materials.

Energy efficiency has been identified as another area that requires monitoring and development. Most functions of the company are powered by electricity. The employees are another key driving force with their awareness of the cost effects and environmental impacts of energy use and ability to influence on how much power we need to use.

Packaging technology is a much discussed topic among Orion’s customers and employees. Why do we pack our products the way we do? There are many open questions, and Orion faces many challenges in rethinking packaging so that both environmental responsibility and product safety requirements are considered in a balanced ratio. Orion cannot choose the materials and solutions for its packaging independently, as they are regulated and assessed by drug authorities. The packaging solutions for pharmaceuticals are chosen primarily based on stability, protection and safety of the product, but environmental impacts of packaging are also taken increasingly into consideration. Once a certain type of packaging has been approved for a drug, any changes require approval from the drug authorities, which is a lengthy and expensive process.

Identifying stakeholders expected to use the report

Multiple stakeholder groups being in interaction with Orion and its representatives are both affected by Orion’s activities and can affect Orion’s performance and operating conditions, directly or indirectly.

The stakeholder specification is discussed in more detail in section 4.14 List of stakeholder groups engaged by the organisation, section 4.15 Basis for identification and selection of stakeholders with whom to engage, and section 4.16 Approaches to stakeholder engagement, including frequency of engagement by type and stakeholder group.

3.6 Boundary of the report

Orion provides relevant Group-wide information under the GRI indicators used in reporting. The following organizational groupings are used in the calculations:

Orion Group

       Orion Corporation

              Pharmaceutical operations Espoo

              Pharmaceutical operations Turku

              Pharmaceutical operations Kuopio

              Subcontractors for Pharmaceutical operations (when applicable)

              Foreign Orion Pharma and Orion Diagnostica marketing subsidiaries

       Orion Diagnostica

              Diagnostics operations Espoo

              Diagnostics operations Turku

              Subcontractors for Diagnostics operations (when applicable

       Fermion

              Pilot plant Espoo

              API manufacturing Hanko

              API manufacturing Oulu

3.7 State any specific limitations on the scope or boundary of the report

Foreign subsidiaries are not included in environmental performance indicators. Also part of the data showing structural information about the employees is limited due to insufficient data for the subsidiaries. Due to the relatively small size of the offices, their impact on the total performance is, however, minor.

3.8 Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and other entities that can significantly affect comparability from period to period and/or between organisations

Over time, Orion will undoubtedly need to expand its sustainability reporting by adding more indicators. Since this is the first report, it is not yet possible to determine what kind of themes Orion will add and when. Additions will be affected by factors such as feedback and assessment of the first and the upcoming reports. Orion is also waiting for a GRI Sector Supplement adapted for the pharmaceutical industry.

3.9 Data measurement techniques and the bases of calculations

Orion uses the applicable calculation principles of the GRI guidelines in its sustainability reporting. The measurement techniques and calculation methods are described in more detail for some indicators if the method is not otherwise clear or if it deviates from the GRI guidelines.

Some figures for years 2008 and 2007 may include some uncertainty because theymay have been derived in a post-calculation when implementing the data system for sustainability reporting.

3.10 Explanation of the effect of any re-statements of information provided in earlier reports, and the reasons for such re-statement

Orion publishes the first sustainability development report in 2010. The report covers the years from 2007 to 2009. No sustainability report has been published by the current Orion.

3.11 Significant changes from previous reporting periods in the scope, boundary or measurement methods applied in the report

Due to the afore-mentioned reason, no changes have been actual yet.