Notable ESG scores:
Human Rights & Community Relations (+9)
Supply Chain Management (+3)
Energy Management (+2)
Amgen reports its ESG efforts on its website across four general categories—corporate governance, responsibility, environment and diversity, and inclusion and belonging.
It also issues an annual report, which in 2020 highlighted the $1.5 billion worth of medicines donated through its Amgen Safety Net Foundation, 24 million students served last year through Amgen Foundation science education programs, and its carbon-neutral pledge.
Amgen has reported on “corporate responsibility” efforts since 2016. However, the 2020 report now aligns with the newest ESG communications guidance developed by a pharma company-investment firm collaboration, the Biopharma Sustainability Roundtable.
Amgen scored well for human rights and community relations in Alva’s evaluation, aided by Amgen Foundation grants early this year. That outlay included a $150,000 contribution to a Los Angeles community development group for a program delivering technical help and capital to entrepreneurs and existing businesses in the Watts neighborhood and surrounding area.
In January, Amgen pledged to spend $200 million to get to carbon neutrality, reduce water use by 40% and waste disposed by 75% over the next seven years.
The environmental sustainability plan includes adopting innovative biomanufacturing technologies to reduce carbon emissions, such as those used at its newest biomanufacturing plant in Singapore. The plant is one-fifth the size of traditional manufacturing plants and operates at one-third of the cost, but it still produces the same amount of medicines. And it generates 70% fewer carbon emissions than traditional biomanufacturing facilities.
Like many pharmas, Amgen fell into the negative numbers on affordability, with “unsubstantiated price hikes” as reported by the Institute for Clinical and Economic Review (ICER). That includes longtime arthritis med Enbrel, whose list price grew by 5.4%. Still, Alva noted overall Amgen’s net drug prices dropped by 7% in the first quarter of 2021.