Orion Oyj

“The types of workers that could face material impacts are workers working in upstream manufacturing value chain and, among those, especially vulnerable are migrant workers, contract workers, and young workers. Material potential negative impacts in relation to working conditions and equal treatment are, to an extent, systemic in India and China. Material potential negative impacts concerning other work-related rights are related to potential individual incidents in specific business relationships.”

Annual report 2025A · The company itself

“In Orion’s direct and indirect business relations, the geographies with a significant risk of child labour and forced labour are China and India.”

Annual report 2025A · The company itself

“Orion has identified a material risk, which arises from potential impacts to value chain workers health, safety, and working conditions. This risk is specifically related to workers located in India and China.”

Annual report 2025A · The company itself

“Orion’s risk-based approach, described in G1-2 Management of relationships with suppliers, included until end of 2025 evaluating the risks related to value chain workers as well as local communities in its Tier 1 suppliers.”

Annual report 2025A · The company itself

“Furthermore, Orion’s EHS function provides trainings to personnel in Finland and India during their career to provide information about Orion’s EHS practices. Onboarding EHS training was enlarged to a global scope in 2025.”

Annual report 2025A · The company itself

“Orion is committed to upholding high standards in working conditions and equal treatment for all employees. A key action to manage material potential impacts was a new global line manager training programme, Orion in Motion. Each Orion line manager participates in this programme.”

Annual report 2025A · The company itself

“Orion introduced in 2025 a new performance management process, which includes components related to short-term incentive goal setting, growth and development of an employee, and performance evaluation of an individual employee.”

Annual report 2025A · The company itself

“Orion Third Party Code of Conduct, in alignment with the International Bill of Human Rights and ILO conventions, addresses i.a. freely chosen employment, child labour, young workers, nondiscrimination, fair treatment, wages, benefits and working hours, freedom of association and right to collective bargaining, as well as local communities’ rights to a clean and healthy environment. The section on health and safety addresses the following topics: safety of the work environment, worker protection, health and well-being as well as process safety.”

Annual report 2025A · The company itself

“As a member of the PSCI, Orion is able to provide capacity-building to suppliers through recommending participation to trainings offered by PSCI on working conditions, equal treatment and other work-related rights. Through utilising the EcoVadis scorecard for supplier selfassessments, suppliers also receive highlights and insights into areas in need of improvement.”

Annual report 2025A · The company itself

“Pharmaceutical products are inherently non-circular: they cannot be reused or recycled. Moreover, reusing pharmaceutical materials in production processes is often not possible due to patient safety aspects. There are also strict limitations on the recycling of packaging of pharmaceutical products due to patient safety and community health aspects.”

Annual report 2025A · The company itself

“Orion aims to align with EU’s waste strategy, which prioritises reducing waste generated and increasing waste recycled. Most of the Orion Group’s waste is hazardous, and most of it comes from API production in Hanko and Oulu.”

Annual report 2025A · The company itself

“E5-2 Actions and resources related to resource use and circular economy For Orion’s API manufacturing, solvents represent significant volumes of the total material needs. Some solvents utilised in Orion’s API manufacturing processes can be reused in Orion’s own operations after being regenerated by a distillation process. At the Hanko site, regenerated solvents can be reused in steam generation and in certain production processes.”

Annual report 2025A · The company itself

“At Orion’s Hanko site, side-stream ethanol distillates are used as a supporting fuel in the volatile organic compounds (VOC) treatment unit on site. These fractions cannot be reused in production due to Good Manufacturing Practice (GMP) requirements. Utilising the fractions as fuel reduces the need for natural gas and fuel oil in the VOC unit and decreases the volume of hazardous waste.”

Annual report 2025A · The company itself

“From 2026, Orion will also begin to sell side-stream ethanol distillates to an external partner for reuse, thereby promoting resource efficiency and supporting the implementation of circular economy principles within own operations.”

Annual report 2025A · The company itself

“Moreover, Orion has an ongoing process in which side-stream ethanol, a by-product of Orion’s API manufacturing processes at Hanko site, is directed to be used as a carbon source for microbes in a wastewater facility. The process improves the operation of wastewater treatment plant and thus significantly reduces the nitrogen load entering the Baltic Sea from the factories and reduces hazardous waste.”

Annual report 2025A · The company itself

“The balance of benefits and risks related to the use of medicinal products is continuously assessed in light of cumulative information about the product. Orion reports the information and assessments to authorities, and continuous dialogue is maintained between authorities and Orion regarding the benefit/risk assessment of the products. Actions are taken, if necessary, e.g., to minimise risks.”

Annual report 2025A · The company itself

“Orion conducts continuous benefit-risk assessment of the products, which starts from the product development and continues through the entire life cycle of the product. Decisions on benefit-risk are made based on the cumulative safety information collected though the life cycle of the product.”

Annual report 2025A · The company itself

“Orion collects safety information globally. Orion’s pharmacovigilance organisation collects data from all Orion locations and business partners for continuous safety assessment, monitoring and reporting.”

Annual report 2025A · The company itself

“Orion tracks the quality of its good manufacturing processes related to product quality, safety, efficacy, through GxP inspections conducted by the authorities. Level of ambition is zero critical observations, and the base period is the previous year.”

Annual report 2025A · The company itself

“Orion has developed an understanding of how particularly vulnerable end-user populations, or end-users using particular products may be at greater risk of harm, through conducting a careful analysis and assessment, which is based on pharmaceutical industry ethical and legal requirements in the EU and globally. All of the material risks and opportunities are related to all end-users pharmaceutical products.”

Annual report 2025A · The company itself

“The outlook assumes that the Nubeqa® royalties and product sales booked by Orion will increase clearly in 2026. Orion’s assumption is based on forecasts received from its partner Bayer.”

Annual report 2025A · The company itself

“The three key elements in the strategy are the following: 1) Build a customer driven portfolio through our competitive businesses: • Innovative Medicines focuses on oncology and pain management, leveraging Orion’s R&D expertise in these crucial and expanding fields. • Branded Products continues building on its strength and success in Respiratory and Parkinson’s disease. • Generics and Consumer Health provides a large cost-effective generics portfolio complemented by value-added and complex generics to European hospitals and other selected markets and caters to customer needs with consumer health products with value propositions.”

Annual report 2025A · The company itself

“Orion’s growth strategy in three steps according to Orion strategic roadmap: 1) Strengthen & Expand – Strengthen European and Asia Pacific market positions. 2) Build and Invest – Build and invest into global commercial assets and capabilities. 3) Accelerate – Grow and maximise value of global assets.”

Annual report 2025A · The company itself

“The company has two large research centres in Finland and smaller R&D offices in Cambridge, UK and Boston, US. In addition, Orion’s Animal Health division has small R&D operations in France and Belgium.”

Annual report 2025A · The company itself

“Significant data breach to Orion’s or its service providers’ systems or databases breaches the data subjects rights and privacy. For Orion, it causes significant reputational damage, settlement work and related costs, non-compliance fees and jeopardises business continuity.”

Annual report 2025A · The company itself

“Orion maintains a robust trademark portfolio, which is actively enforced in key markets to protect Orion’s trademarks and product names and to prevent misuse. In parallel, Orion has implemented serialisation systems. Serialisation systems apply to products on the market’s where serialisation is required by the authorities.”

Annual report 2025A · The company itself

“Regulators impose stricter climate-related regulations, reporting requirements, and emissions standards. This could increase CapEx to comply with mitigation targets, enable transparent climate reporting, and invest in low-carbon technologies.”

Annual report 2025A · The company itself

“Orion’s climate mitigation actions, including Orion’s approach to renewable fuel transition, are not considered adequate for Orion to qualify for public tenders/pharmacy chains or Orion must cut prices.”

Annual report 2025A · The company itself

“Regulators introduce stricter energy efficiency requirements, renewable sourcing mandates, and reporting obligations. This may increase CapEx to upgrade equipment, improve energy performance, and align with decarbonisation policies.”

Annual report 2025A · The company itself

“EU’s strategic initiative for limiting pharmaceuticals in environment will necessitate investments in urban wastewater management, which will cause expenses for Orion due to extended producer responsibility costing model allocations for human medicines placed on the market. In addition, this will increase costs in Orion’s own operations and increase data requirements.”

Annual report 2025A · The company itself

“Branded Products and Generics and Consumer Health businesses face challenges in sales growth and limitations to keep products on the market. These issues arise if business case(s) for new products in Branded Products and Generics and Consumer Health businesses become restricted or unfeasible due to the added costs of environmental risk assessment (ERA).”

Annual report 2025A · The company itself

“Actions related to mitigation of pollution-related risks Orion actively engages with national authorities and relevant stakeholders across its key markets in relation to the Urban Waste Water Directive (signed and published in the Official Journal of the EU on 15 December 2024) and its national implementations. The company is committed to ensuring that evolving legislation is revised in a way that safeguards both environmental and public health outcomes.”

Annual report 2025A · The company itself

“Orion requires suppliers to monitor their greenhouse gas emissions. Suppliers are also expected to reduce their emissions.”

Annual report 2025A · The company itself

“As a science-driven organisation, Orion aligns with the scientific community’s urgent call to limit the rise in global average temperature at 1.5 degrees Celsius. Orion has established climate targets that are in line with the 1.5-degree target for 2030. In its own operations, Orion has a target to reduce its absolute Scope 1 and 2 emissions by 70% by 2030 from a 2023 baseline.”

Annual report 2025A · The company itself

“In its value chain, Orion engages and collaborates with suppliers, making this the main decarbonisation lever for value chain emissions. By 2029, 78% of Orion’s suppliers, measured by emissions from purchased goods and services, capital goods, and upstream transportation and distribution, are expected to have their own approved SBTi targets.”

Annual report 2025A · The company itself

“The three key elements in the strategy are the following: 1) Build a customer driven portfolio through our competitive businesses: • Innovative Medicines focuses on oncology and pain management, leveraging Orion’s R&D expertise in these crucial and expanding fields. • Branded Products continues building on its strength and success in Respiratory and Parkinson’s disease. • Generics and Consumer Health provides a large cost-effective generics portfolio complemented by value-added and complex generics to European hospitals and other selected markets and caters to customer needs with consumer health products with value propositions.”

Annual report 2025A · The company itself

“Orion’s growth strategy in three steps according to Orion strategic roadmap: 1) Strengthen & Expand – Strengthen European and Asia Pacific market positions. 2) Build and Invest – Build and invest into global commercial assets and capabilities. 3) Accelerate – Grow and maximise value of global assets.”

Annual report 2025A · The company itself

“Net sales split by product groups 1–12/25 1–12/24 Generic prescription drugs 420.0 396.3 +6.0% Consumer Health products 132.8 132.1 +0.6% Total 552.8 528.4 +4.6% Net sales split by region 1–12/25 1–12/24 Finland and Baltics 334.6 320.9 +4.3% Scandinavia 97.4 87.8 +10.9% Eastern Europe 52.1 50.0 +4.1% 68.8 69.7 -1.3% Total 552.8 528.4 +4.6% Net sales of the Generics and Consumer Health business division in January–December 2025 increased by 4.6%.”

Annual report 2025A · The company itself

“The company has two large research centres in Finland and smaller R&D offices in Cambridge, UK and Boston, US. In addition, Orion’s Animal Health division has small R&D operations in France and Belgium.”

Annual report 2025A · The company itself

“Revenues from major customer of the Group in 2025 represented approximately EUR 808.9 (2024: 458.8) million of the Group’s total revenue.”

Annual report 2025A · The company itself

“Orion’s operations and sales network Orion is headquartered in Espoo, Finland. The company has a total of eight production sites, six in Finland, one in France and one in Belgium.”

Annual report 2025A · The company itself

“Orion has its own sales network in Europe and six countries in the Asia- Pacific region.”

Annual report 2025A · The company itself

“Net sales split by product groups 1–12/25 1–12/24 Generic prescription drugs 420.0 396.3 +6.0% Consumer Health products 132.8 132.1 +0.6% Total 552.8 528.4 +4.6% Net sales split by region 1–12/25 1–12/24 Finland and Baltics 334.6 320.9 +4.3% Scandinavia 97.4 87.8 +10.9% Eastern Europe 52.1 50.0 +4.1% 68.8 69.7 -1.3% Total 552.8 528.4 +4.6% Net sales of the Generics and Consumer Health business division in January–December 2025 increased by 4.6%.”

Annual report 2025A · The company itself

“These geographical regions correspond to the Group’s main markets. Net sales are presented according to the customer’s location.”

Annual report 2025A · The company itself

“Stricter regulation on industrial wastewater discharges, including e.g. limits on effluent temperature, and pollutant loads may lead to increased CapEx for upgrading treatment systems, improving monitoring, and maintaining compliance.”

Annual report 2025A · The company itself

“The use of clean water in Orion’s own operations or supply chain may have impacts on biodiversity, ecosystems and local communities in the area by reducing the availability of clean water. Orion has own operations and value chain partners in geographical areas that are experiencing water stress.”

Annual report 2025A · The company itself

“The transition towards sustainable water use poses a regulatory risk, as regulators tighten access to freshwater through permits, withdrawal limits, or basin-level allocation schemes. This may increase CapEx to improve water efficiency, secure alternative sources, or reduce operational dependency.”

Annual report 2025A · The company itself

“At the Hanko site, Orion conducts soil remediation efforts to address historical pollution from past operations. Orion pumps groundwater from the soil and directs it to a wastewater treatment plant, where its quality is closely monitored.”

Annual report 2025A · The company itself

“In regions classified as water-stressed, water availability can be come constrained during drought periods. In such cases even limited industrial use may compete with community needs.”

Annual report 2025A · The company itself

“Depletion or contamination of community water resources may pose a regulatory compliance and reputation risk, as regulators enforce water quality laws, access rights, and pollution limits. This risk relates to impacts on communities near upstream pharmaceutical formulation and active pharmaceutical ingredient manufacturing facilities, including those in geographical areas with high water stress.”

Annual report 2025A · The company itself

“Water use in high water-stress areas encompasses water use on sites in France and Belgium.”

Annual report 2025A · The company itself

“Orion’s site in France is participating in stakeholder discussions led by the industry association Syndicat de l’Industrie du Médicament et diagnostic Vétérinaires (SIMV), which are focused on exploring practical approaches to improve sustainable water management and water efficiency across the sector.”

Annual report 2025A · The company itself

“Tightening regulation on persistent pollutants such as PFAS may increase CapEx and costs related to material phase-outs in areas like manufacturing, including equipment and utilities as well as in substances used in products.”

Annual report 2025A · The company itself

“Orion’s API and final product manufacturing both require significant volumes of starting materials, raw materials and intermediates. For API manufacturing, solvents represent a considerable volume of the total material needs.”

Annual report 2025A · The company itself

“Orion’s Third Party Code of Conduct requires partners to minimise environmental impacts and to implement the same requirement across their suppliers. Partners must manage and treat waste, wastewater, and emissions to protect human and environmental health, including controlling pharmaceutical releases.”

Annual report 2025A · The company itself

“In 2025, Orion developed a new model for supplier sustainability assessment, covering Orion’s active suppliers of packaging materials, raw materials, and products. Its aim is to improve prioritisation of sustainability risks based on severity and likelihood.”

Annual report 2025A · The company itself

“Actions related to mitigation of impacts from Substances of Concern and Substances of Very High Concern Green chemistry principles are embedded in Orion’s API development procedures, guiding synthesis route selection and the use of solvents and reagents. Where feasible from process functionality perspective, the choice of materials must fall on the option with the least possible burden on human health and the environment.”

Annual report 2025A · The company itself

“Insufficient awareness and inability to implement upcoming regulatory and customer specific requirements (in market entry, e.g. while preparing for coming tenders) leading to lost business opportunities.”

Annual report 2025A · The company itself

“High ESG maturity level at Orion while making supplier selections guarantees sustainable supplier network strategy (now and in the future).”

Annual report 2025A · The company itself

“Orion brand value increases by ensuring sustainable supply chain. A sustainable supply chain supports trust among stakeholders, enhances company reputation and contributes to longterm business success.”

Annual report 2025A · The company itself

“Orion can strengthen its brand and reputation by internally ensuring compliance and responsible business in own or service providers’ operations, and then by transparently reporting of anti-corruption activities to customers and other stakeholders.”

Annual report 2025A · The company itself

“Global trends and operating environment for pharma Industry The following key global trends drive growth opportunities and challenges in pharma industry and affect Orion’s operating environment: • Demographics and aging of population: as population ages, the prevalence of various diseases increases, causing increased demand for drugs and treatments. • Cost pressure in healthcare and pharmaceuticals: the share of healthcare costs of available funds continues to increase, both at national and individual level, creating needs for costeffective drugs and treatments.”

Annual report 2025A · The company itself

“Orion, however, monitors the continuous reliable supply of patient critical medicines, for which no alternatives exist in a particular market. The goal is to achieve 100% availability, using the previous year as the benchmark for performance.”

Annual report 2025A · The company itself

“The Group consists of one business area, Pharmaceuticals business, which comprises four business divisions.”

Annual report 2025A · The company itself

“S4-2 Processes for engaging with consumers and end-users about impacts Orion engages with patients, consumers, and end-users through dialogue with patient organisations. Engagement is conducted to understand patient and consumer experiences of Orion’s medicinal and other products to ensure safe, effective, high-quality and cost-effective products as well as to incorporate patient and consumer feedback in the development of new medications and provide product information and guidance to support appropriate usage of products and engagement to treatment, improved usability and responsible disposal of medications.”

Annual report 2025A · The company itself

“The three key elements in the strategy are the following: 1) Build a customer driven portfolio through our competitive businesses: • Innovative Medicines focuses on oncology and pain management, leveraging Orion’s R&D expertise in these crucial and expanding fields. • Branded Products continues building on its strength and success in Respiratory and Parkinson’s disease. • Generics and Consumer Health provides a large cost-effective generics portfolio complemented by value-added and complex generics to European hospitals and other selected markets and caters to customer needs with consumer health products with value propositions.”

Annual report 2025A · The company itself

“Orion’s growth strategy in three steps according to Orion strategic roadmap: 1) Strengthen & Expand – Strengthen European and Asia Pacific market positions. 2) Build and Invest – Build and invest into global commercial assets and capabilities. 3) Accelerate – Grow and maximise value of global assets.”

Annual report 2025A · The company itself

“Orion has its own sales network in Europe and six countries in the Asia- Pacific region.”

Annual report 2025A · The company itself

“In this framework, in 2025 Orion renewed its risk based approach in procurement to align with the UNGPs.”

Annual report 2025A · The company itself

“New policies adopted in 2025 include the global Orion Compensation Principles, the Job Title Guideline, an Orion Short-Term Incentive Policy, a Global Travel Guideline and the Orion Global Mobility Guidelines. These new policies introduce new processes and guidelines that support the company in ensuring equal working conditions. The primary goal of these policies is to enhance transparency, consistency, and equal treatment of all Orion employees.”

Annual report 2025A · The company itself

“For suppliers within the pharmaceutical industry, Orion utilised country risk data provided by Verisk Maplecroft where the risk level on social, environmental and governance topics are assessed. For Orion’s indirect suppliers, Orion utilises risk data provided by EcoVadis’ IQ tool, which alongside environmental and governance topics includes social topics relevant for evaluating potential impacts on value chain workers.”

Annual report 2025A · The company itself

“As a member of the PSCI, Orion recognises that industry collaborative action is necessary for the prevention and mitigation of local community impacts, and Orion supports such actions through the PSCI framework. Orion’s support consists of engagement in PSCI committee’ work.”

Annual report 2025A · The company itself

“Fuel consumption from coal and coal products (MWh) Fuel consumption from crude oil and petroleum products (MWh) 1,421 1,476 Fuel consumption from natural gas (MWh) 17,540 19,150 Fuel consumption from other fossil sources (MWh) Consumption of purchased or acquired electricity, heat, steam, or cooling from fossil sources (MWh) 17,948 17,600 Total fossil energy consumption (MWh) 36,909 38,226 Share of fossil sources in total energy consumption (%) 25% 24% Consumption from nuclear sources (MWh) 79,927 78,586 Share of consumption from nuclear sources in total energy consumption (%) 54% 50% Fuel consumption for renewable sources, including biomass (also comprising industrial and municipal waste of biologic origin, biofuels, biogas, renewable hydrogen, etc.)”

Annual report 2025A · The company itself

“The core therapy areas of Orion’s pharmaceutical R&D are oncology and pain.”

Annual report 2025A · The company itself

“A project to electrify the steam production process at the Turku plant is expected to be completed during the year, which, once finalised, will significantly reduce emissions.”

Annual report 2025A · The company itself

“Orion has developed an understanding of how particularly vulnerable end-user populations, or end-users using particular products may be at greater risk of harm, through conducting a careful analysis and assessment, which is based on pharmaceutical industry ethical and legal requirements in the EU and globally. All of the material risks and opportunities are related to all end-users pharmaceutical products.”

Annual report 2025A · The company itself

“Orion’s own production and other operations are exposed to risks that may materially disrupt their operations or even interrupt them at least temporarily. Such risks include, for example, accidents, damages, natural disasters, strikes, employee illness, conflicts, terrorism, cyber-attacks, hybrid influence, disruption of information or communication systems, disruption of energy supply, and disruption of supply and logistics chains.”

Annual report 2025A · The company itself

“Extreme weather events and chronic climate-related and systemic effects may adversely affect production, security of supply and the safety of workers both in own operations and in the value chain. This may take the form of e.g. supplier shutdown, close of logistics routes, or civil unrest causing inability to operate.”

Annual report 2025A · The company itself

“Based on the results of the scenario analysis and Orion’s risk assessment process there are vulnerabilities particularly within Orion’s value chain. Physical climate risks are part of the ESG risks related to Orion’s supply chain, which are overall significant.”

Annual report 2025A · The company itself

“Physical climate risks could potentially materialise through supply chain disruptions.”

Annual report 2025A · The company itself

“The possible arising risks in the medium- and long-term are acknowledged, and Orion has begun to monitor them.”

Annual report 2025A · The company itself

“Key currencies that carry an exchange rate risk for Orion are the US dollar, the Swedish krona and the Polish zloty.”

Annual report 2025A · The company itself

“The outlook assumes that the Nubeqa® royalties and product sales booked by Orion will increase clearly in 2026. Orion’s assumption is based on forecasts received from its partner Bayer.”

Annual report 2025A · The company itself

“Key currencies that carry an exchange rate risk for Orion are the US dollar, the Swedish krona and the Polish zloty.”

Annual report 2025A · The company itself

“Orion has a dependency on Horseshoe Crab-Derived Reagents (LAL) for Endotoxin Testing, which is a regulatory requirement for a subset of products, including injectable medicines, but also related water systems and critical raw materials. A disruption in access to the LAL reagent – due to species population decline, extinction, or regulatory changes – would critically impact quality control processes.”

Annual report 2025A · The company itself

“Changes in pharmaceutical or other regulation in individual markets or more broadly, for example at EU level, may affect the sales and profitability of Orion’s products.”

Annual report 2025A · The company itself

“Authorities and key customers in different countries carry out regular and detailed inspections of drug development and manufacturing at Orion’s sites. Any remedial actions that may be required may at least temporarily have effects that decrease delivery reliability and increase costs.”

Annual report 2025A · The company itself

“Stricter regulation on industrial wastewater discharges, including e.g. limits on effluent temperature, and pollutant loads may lead to increased CapEx for upgrading treatment systems, improving monitoring, and maintaining compliance.”

Annual report 2025A · The company itself

“Tightening regulation on persistent pollutants such as PFAS may increase CapEx and costs related to material phase-outs in areas like manufacturing, including equipment and utilities as well as in substances used in products.”

Annual report 2025A · The company itself

“The transition towards sustainable water use poses a regulatory risk, as regulators tighten access to freshwater through permits, withdrawal limits, or basin-level allocation schemes. This may increase CapEx to improve water efficiency, secure alternative sources, or reduce operational dependency.”

Annual report 2025A · The company itself

“Geopolitical developments are decreasing predictability and causing challenges in global supply chains. • Advancements in science and technologies: personalised medicine, increased genetic and epigenetic data and developments in drug dosing and diagnostics create possibilities and markets for new treatments and therapies.”

Annual report 2025A · The company itself

“Orion’s production and business operations are dependent on global supply and logistics chains, the inaction of which may lead to low availability of finished products and raw materials, starting materials, semi-finished products, supplies, equipment and spare parts needed in production.”

Annual report 2025A · The company itself

“The current geopolitical conflicts and unrest, and other challenges in the global supply and logistics chains of pharmaceuticals have increased the already elevated risk of supply disruptions.”

Annual report 2025A · The company itself

“Different types of packaging materials also constitute a significant inflow of resources, both in Orion’s own operations and in the value chain.”

Annual report 2025A · The company itself

“Orion’s sustainable procurement process for packaging materials, raw materials and products includes a supplier risk assessment, based on which suppliers can be targeted for the evaluation of the processes they have in place. This evaluation is done via either a self-assessment questionnaire or an on-site audit, and features aspects related to wastewater management, spill prevention and emissions.”

Annual report 2025A · The company itself

“In 2025, Orion developed a new model for supplier sustainability assessment, covering Orion’s active suppliers of packaging materials, raw materials, and products. Its aim is to improve prioritisation of sustainability risks based on severity and likelihood.”

Annual report 2025A · The company itself

“Geopolitical developments are decreasing predictability and causing challenges in global supply chains. • Advancements in science and technologies: personalised medicine, increased genetic and epigenetic data and developments in drug dosing and diagnostics create possibilities and markets for new treatments and therapies.”

Annual report 2025A · The company itself

“The current geopolitical conflicts and unrest, and other challenges in the global supply and logistics chains of pharmaceuticals have increased the already elevated risk of supply disruptions.”

Annual report 2025A · The company itself

“However, Orion continued its reduction efforts by switching the liquefied gas used for heating at one site to biogas and by replacing the auxiliary fuel used in steam production from a fossil fuel to a biofuel.”

Annual report 2025A · The company itself

“Fuel consumption from coal and coal products (MWh) Fuel consumption from crude oil and petroleum products (MWh) 1,421 1,476 Fuel consumption from natural gas (MWh) 17,540 19,150 Fuel consumption from other fossil sources (MWh) Consumption of purchased or acquired electricity, heat, steam, or cooling from fossil sources (MWh) 17,948 17,600 Total fossil energy consumption (MWh) 36,909 38,226 Share of fossil sources in total energy consumption (%) 25% 24% Consumption from nuclear sources (MWh) 79,927 78,586 Share of consumption from nuclear sources in total energy consumption (%) 54% 50% Fuel consumption for renewable sources, including biomass (also comprising industrial and municipal waste of biologic origin, biofuels, biogas, renewable hydrogen, etc.)”

Annual report 2025A · The company itself

“In anticipation of future regulatory developments, Orion is conducting preliminary assessments of its product portfolio, focusing on environmental hazardousness factors and biodegradability. These evaluations are being carried out despite the current absence of standardised legislative frameworks.”

Annual report 2025A · The company itself

“Orion is also assessing the potential impact of future Extended Producer Responsibility (EPR) schemes, including the feasibility of maintaining certain products on the market under such conditions.”

Annual report 2025A · The company itself

“Global trends and operating environment for pharma Industry The following key global trends drive growth opportunities and challenges in pharma industry and affect Orion’s operating environment: • Demographics and aging of population: as population ages, the prevalence of various diseases increases, causing increased demand for drugs and treatments. • Cost pressure in healthcare and pharmaceuticals: the share of healthcare costs of available funds continues to increase, both at national and individual level, creating needs for costeffective drugs and treatments.”

Annual report 2025A · The company itself

“• Sustainability regulation and demand for sustainability: sustainability and compliance in all business sectors increasingly guide the actions and decisions of consumers, authorities and investors. • Digitalisation, the use of AI and real time data: the amount and significance of data is growing, and it has become a valuable tool for generating competitive business opportunities. Societies and companies are increasingly relying on artificial intelligence, machine learning, and automation.”

Annual report 2025A · The company itself

“• Sustainability regulation and demand for sustainability: sustainability and compliance in all business sectors increasingly guide the actions and decisions of consumers, authorities and investors. • Digitalisation, the use of AI and real time data: the amount and significance of data is growing, and it has become a valuable tool for generating competitive business opportunities. Societies and companies are increasingly relying on artificial intelligence, machine learning, and automation.”

Annual report 2025A · The company itself

“Fuel consumption from coal and coal products (MWh) Fuel consumption from crude oil and petroleum products (MWh) 1,421 1,476 Fuel consumption from natural gas (MWh) 17,540 19,150 Fuel consumption from other fossil sources (MWh) Consumption of purchased or acquired electricity, heat, steam, or cooling from fossil sources (MWh) 17,948 17,600 Total fossil energy consumption (MWh) 36,909 38,226 Share of fossil sources in total energy consumption (%) 25% 24% Consumption from nuclear sources (MWh) 79,927 78,586 Share of consumption from nuclear sources in total energy consumption (%) 54% 50% Fuel consumption for renewable sources, including biomass (also comprising industrial and municipal waste of biologic origin, biofuels, biogas, renewable hydrogen, etc.)”

Annual report 2025A · The company itself

“Orion’s own production and other operations are exposed to risks that may materially disrupt their operations or even interrupt them at least temporarily. Such risks include, for example, accidents, damages, natural disasters, strikes, employee illness, conflicts, terrorism, cyber-attacks, hybrid influence, disruption of information or communication systems, disruption of energy supply, and disruption of supply and logistics chains.”

Annual report 2025A · The company itself

“• Sustainability regulation and demand for sustainability: sustainability and compliance in all business sectors increasingly guide the actions and decisions of consumers, authorities and investors. • Digitalisation, the use of AI and real time data: the amount and significance of data is growing, and it has become a valuable tool for generating competitive business opportunities. Societies and companies are increasingly relying on artificial intelligence, machine learning, and automation.”

Annual report 2025A · The company itself

“Regulators introduce stricter energy efficiency requirements, renewable sourcing mandates, and reporting obligations. This may increase CapEx to upgrade equipment, improve energy performance, and align with decarbonisation policies.”

Annual report 2025A · The company itself

“The possible rise of raw material prices and other supply chain costs deteriorates the profitability of Orion’s products, since in the pharmaceutical industry it is very difficult to pass on cost increases to the prices of own products, especially prescription medicines, particularly in Europe. If high cost inflation occurs, it will pose a risk to Orion’s profitability.”

Annual report 2025A · The company itself

“Additionally, pharmaceutical companies are often limited to using virgin materials in the production of pharmaceuticals and packages, since existing cleaning technologies in many cases cannot yet remove impurities in recycled material flows sufficiently rigorously.”

Annual report 2025A · The company itself

“New tariffs or other possible customs duties on Orion’s products may negatively affect the sales and profitability of Orion’s products. The details of the US pharmaceutical tariffs, their implementation and their impact on Orion still remain unclear.”

Annual report 2025A · The company itself

“Orion’s operations and sales network Orion is headquartered in Espoo, Finland. The company has a total of eight production sites, six in Finland, one in France and one in Belgium.”

Annual report 2025A · The company itself

“Net sales split by product groups 1–12/25 1–12/24 Generic prescription drugs 420.0 396.3 +6.0% Consumer Health products 132.8 132.1 +0.6% Total 552.8 528.4 +4.6% Net sales split by region 1–12/25 1–12/24 Finland and Baltics 334.6 320.9 +4.3% Scandinavia 97.4 87.8 +10.9% Eastern Europe 52.1 50.0 +4.1% 68.8 69.7 -1.3% Total 552.8 528.4 +4.6% Net sales of the Generics and Consumer Health business division in January–December 2025 increased by 4.6%.”

Annual report 2025A · The company itself

“Net sales split by product groups 1–12/25 1–12/24 Generic prescription drugs 420.0 396.3 +6.0% Consumer Health products 132.8 132.1 +0.6% Total 552.8 528.4 +4.6% Net sales split by region 1–12/25 1–12/24 Finland and Baltics 334.6 320.9 +4.3% Scandinavia 97.4 87.8 +10.9% Eastern Europe 52.1 50.0 +4.1% 68.8 69.7 -1.3% Total 552.8 528.4 +4.6% Net sales of the Generics and Consumer Health business division in January–December 2025 increased by 4.6%.”

Annual report 2025A · The company itself