Announcement PDF Radiopharm Theranostics Limited ACN 647 877 889 2023 Environmental, Social and Governance Report 2 Environmental, Social, and Governance (ESG) Radiopharm Theranostics (“RAD”, “Radiopharm” or the “Company”) is committed to the principles of ESG as the most effective means of creating long-term enterprise value and addressing the societal priorities enshrined in the United Nations’ Sustainable Development Goals. In July 2021, we commenced reporting on the Environmental, Social, and Governance (ESG) disclosures of the Stakeholder Capitalism Metrics (SCM) of the World Economic Forum (WEF). We continue to progress our disclosures in the form of a set of universal, comparable ESG metrics focused on people, planet, prosperity and principles of governance that organisations can report on regardless of industry or region. We use this universal ESG framework to align our mainstream reporting on performance against ESG indicators. By integrating ESG metrics into our governance, business strategy, and performance management process, we diligently consider all pertinent risks and opportunities in running our business. We continue to look for opportunities for further transparency on the topics which are material to our business. To track our disclosure progress and demonstrate our sustainability performance against the WEF SCM framework we utilise Social suite’s ESG Go disclosure platform. Riccardo Canevari Chief Executive Officer and Managing Director 3 Governance Setting Purpose Radiopharm is developing radiopharmaceutical products for both diagnostic and therapeutic uses in areas of high unmet medical needs. See also: • • www.radiopharmtheranostics.com/about-us www.radiopharmtheranostics.com/investors Governance Body Composition Radiopharm is governed by its Board of Directors and Committees of the Board. A description of director expertise, tenure, committee roles, meeting attendance, other significant positions and commitments and remuneration are outlined in the Annual Financial Report. The skills and perspectives of our board members are important for ongoing decisions and governance, with respect to the everyday running of the company as well as important economic, environmental, and social topics. The Board has referred to the guidance provided by the ASX Corporate Governance Council and acknowledges the recommendation that a majority of the Board of a listed entity should be independent and will work towards this outcome as the Company continues to grow. The Board is cognisant of maintaining a balance of diversity, skills, experience, and independence amongst its members. The process of formally integrating ESG competencies into the Board Skills Matrix is underway. See also: • • www.radiopharmtheranostics.com/our-team www.radiopharmtheranostics.com/investors Material Issues Impacting Stakeholders RAD is reviewing stakeholder mapping for disclosure in a future ESG report. Anti-Corruption Practices Radiopharm is committed to the highest standard of honesty and integrity. RAD’s commitment to the highest ethical standards includes strict compliance with applicable anti-bribery and corruption laws in Australia and overseas, acting in an ethical manner and acting with honesty, integrity, fairness, and respect. This commitment is reflected in the statement of values of the Company and in the formal Anti-Bribery and AntiCorruption Policy included in the Corporate Governance Framework. See also: • www.radiopharmtheranostics.com/investors 4 Mechanisms to Protect Ethical Behaviour Radiopharm is committed to the highest standards of honesty and ethical practices in all business activities. This is documented in the Company’s Corporate Governance Framework, which outlines Code of Conduct and Whistleblower Policy. Radiopharm’s Corporate Governance Framework can be found on the Radiopharm Theranostics website: • www.radiopharmtheranostics.com/investors Risk and Opportunity Oversight The Board is committed to the identification, assessment, and management of risk throughout the Company’s business activities. The Company’s Risk Management Policy recognises that risk management is an essential element of good corporate governance and fundamental in achieving its strategic and operational objectives. RAD’s Risk and Audit Committee reviews the risk management framework annually to satisfy itself that it continues to be sound. Radiopharm’s Corporate Governance Framework, outlining their Risk Management Policy can be found on the Radiopharm Theranostics website: • www.radiopharmtheranostics.com/investors 5 Planet GHG Emissions Radiopharm does not consider greenhouse gas (GHG) emissions to be a material stakeholder capitalism metric at this time, due to its small workforce and limited office-space footprint. RAD currently considers airline travel to be it’s highest GHC contribution and has therefore set a target for FY24 and beyond to always purchase carbon offsets for flights. TCFD Implementation RAD does not consider Task Force on Climate Related Financial Disclosures (TCFD) implementation to be a material stakeholder capitalism metric at this time, due to its small workforce and limited office-space footprint. Land Use and Key Biodiversity Areas Radiopharm does not consider land use and ecological sensitivity to be a material stakeholder capitalism metric at this time, as it operated from small offices in urban areas. Water Consumption Radiopharm does not consider water consumption to be a material stakeholder capitalism metric at this time, due to its small workforce and limited urban office-space footprint. 6 People Diversity and Inclusion Radiopharm recognises the benefits arising from employee, senior management and Board diversity, including a broader pool of high-quality employees, improving employee retention, accessing different perspectives and ideas and benefiting from all available talent. Diversity includes, but is not limited to, an individual's race, ethnicity, gender, sexual orientation, age, physical abilities, educational background, socioeconomic status, and religious, political, or other benefits. RAD's Corporate Governance Framework, outlining their Diversity Policy can be found on the Radiopharm Theranostics website: • www.radiopharmtheranostics.com/investors Pay Equality Radiopharm pays men and women equally in like-for-like roles. Despite only having a small number of employees we use external benchmarking to ensure proper and fair compensation. Wage Level As a specialist biotechnology company with a small, highly educated and specialist team, wage parity is not a material stakeholder capitalism metric for the Company. Child, Forces or Compulsory Labour Radiopharm considers child, forced and compulsory labour to be abhorrent. As a specialist biotechnology company with a small, highly educated and specialist team, the Company has no direct exposure to child, forced or compulsory labour. The Company is below the A$100 million revenue threshold to report under the Modern Slavery Act in Australia. Health and Safety As a specialist biotechnology company, Radiopharm has effective workplace health and safety practices. Radiopharm will report on health and safety statistics in a future ESG report. Radiopharm has never reported a work-related fatality. Training Provided As a specialist biotechnology company with a small, highly educated team, training is not a material stakeholder capitalism metric for the Company. Radiopharm supports individuals to maintain their continuing professional education and to remain up-to-date with development in their respective fields of endeavour. 7 Prosperity Rate Of Employment With 15 employees during the reporting period, Radiopharm does not consider it worthwhile to perform further employment analysis at this time. Economic Contribution As a specialist biotechnology company, economic contribution is not considered a material stakeholder capitalism metric. This will be reviewed as the Company grows. Financial Investment Contribution Radiopharm's Annual Report includes full disclosure of research, capital expenditure, depreciation and amortisation. Annual Report. Total R&D Expenses As a specialist biotechnology company, research and development is fundamental to the Company and is comprehensively disclosed in the Annual Report. Total Tax Paid The Company reports Income tax in its Annual Report. 8 RAD ESG Performance Data Financial Year Ended 30 June 2023 Metric Notes1 Unit2 FY22 FY23 Target Annual Report & CGS Annual Report & CGS % 100 100 100 # Nil Nil $0 $0 0 Nil $0 $0 n/a % Not measured Not measured %100 Governance Governance performance reported in Annual Report and Corporate Governance Statement (CGS). Governance compliance with ASX Corporate Governance Council Principles and recommendations Anti-corruption Bribery and corruption incidents reported or identified 3 Monetary losses from unethical behaviour Political Donations Whistle-blower complaints 4 Planet Carbon offset purchased for flights Greenhouse Gas (GHG) emissions TCFD implementation Land use and ecological sensitivity Water consumption and withdrawal in water-stressed areas 12Metric 5 6 $ $ # $0 $0 0 7 8 Notes1 Refer to note Refer to note Unit2 FY22 Refer to note FY23 Target 33 67 - 33 67 - 40/40/20 10 40/40/20 People Diversity and inclusion Directors • Female • Male • Other / not identified 9 % 1 Selected r elevant metrics from World Economic For um Report Measuring Stakeholder Capitalism: Towar ds C ommon Metrics and Consistent Reporti ng of Sustainable Value Creati on, https://www.weforum.org/stakeholdercapitalism/our-metrics, 8.11.2022 2 All currency i n Australian dollars (AUD). “#” = number. 3 Compliance assessed on ‘if not why not’ basis per ASX C orporate Governance C ouncil Principles and Recommendati ons 4 Total amount of monetary l osses as a result of legal proceeding s associated with fraud, insider tradi ng, anti-trust, anti-competitive behavi our, market mani pulati on, malpractice, or violati ons of other related industry laws or reg ulations 5 The C ompany does not consider GHG emissi ons to be a material stakehol der capitalism metric at this time, due to its small workforce and li mited office-space footprint 6 The C ompany does not consider TCFD i mpl ementation to be a material stake holder capitalism metric at this ti me, due to its small w orkforce and li mited office-space footprint. 7 The C ompany does not consider land use and ecol ogical sensitivity to be a material stakeholder capitalism metric at this ti me, as it operates from small offices in urban ar eas. 8 The C ompany does not consider water consumpti on to be a material stakeholder capitalism metric at this ti me, due to its small workforce and li mited urban office-space footprint . 9 Employees • Female • Male • Other / not identified Risk for incidents of child, forced or compulsory labour Identified cases of child, forced or compulsory labour in company or direct suppliers. Health and Safety • Recordable work-related injuries Discrimination and Harassment • Number of incidents • Total amount of monetary losses as a result of legal proceedings associated with law violations and employment discrimination. 27 73 - 47 53 - 40/40/20 40/40/20 # Nil Nil Nil # Nil # % Nil $0 Nil Nil # % 5 Nil 4 7% n/a Nil $0 Nil $0 Prosperity Employment • New employee hires • Employee turnover 11 Economic Contribution a. Revenue b. Operating costs c. Employee wages and benefits d. Payments to providers of capital $ Refer Annual Report Refer Annual Report Total R&D expenses Total costs related to research and development (excl. associated employment costs) $M 7.5 25.3 n/a Total R&D tax incentive Total tax offset received under R&D tax incentive (incl. associated employment costs) $M 0 5.9 n/a 3 9 Ratios calculated as at 30 Jun. Senior Management i ncludes Executive C hair, CEO, COO, CFO, C MO, CBO and Director l evel rol es. 10 40/40/20 male/female/flexible ( www.wgea.gov.au/newsroom/4040-vision-a-new-initiative-to-bolster-gender-equality-in-the-asx200 ) 1 1 The company listed i n Nov 2021 and was actively recr uiting during FY22 T +61 3 9824 5254 E info@radiopharmtheranostics.com W radiopharmtheranostics.com A S X :RA D