Basis for Preparation
Galapagos NV is a limited liability company incorporated in Belgium with its registered office at Generaal De Wittelaan L11 A3, 2800 Mechelen, Belgium. In the notes to the consolidated sustainability statements, references to “we”, “us,” “the group” or “Galapagos” include Galapagos NV together with its subsidiaries. The scope of this report and the subsequent financial and sustainability statements are identical to and consolidated at the level of Galapagos NV, which means that the information is exclusively related to Galapagos and – where available – its value chain. No subsidiary undertakings are exempt from consolidated sustainability reporting pursuant to Article 29a of Directive 2013/34/EU. We refer to note 33 of the financial statements for a list of consolidated companies.
The sustainability statement provides an overview of our approach on how we identify our material sustainability topics and report on our progress towards our priorities in the financial year 2024. In preparing the sustainability statement, we have considered the expectations of our stakeholders to ensure that it addresses the topics identified as material to them. We conducted a double-materiality assessment covering the entire value chain. As a consequence, this sustainability statement covers both upstream and downstream Impacts, Risks and Opportunities (IROs). The mapping of Our Value Chain can be found here. No relevant material information was omitted from the statement, except information related to intellectual property due to its classified and sensitive information. Since our initial materiality assessment was conducted in 2022, there was no available guidance or formal legislation at the time. As a result, we adopted commonly used definitions for time horizons, defining the medium term as 3–5 years and the long term as beyond 5 years.
It is important to note that Jyseleca® and its related activities are included in the 2024 double materiality assessment and sustainability statement, despite the fact that Galapagos transferred that business to Alfasigma as announced on January 31, 2024. The transfer included the European and UK Marketing Authorizations, the commercial, medical and development activities for Jyseleca®, and approximately 400 Galapagos positions in 14 European countries. The transfer of Jyseleca® had no significant impact on the identified impacts, risks, or opportunities as concluded during the double materiality update in 2024. Additionally, the implications of the transfer on our policies, actions, and targets were assessed, as outlined in the Our Ambition by 2028 section. Jyseleca® and its related activities are included in our reported metrics from the start of the reporting period until the disposal date, and are excluded from year-end metrics.
In addition, on January 8, 2025, Galapagos announced its plan to separate into two publicly traded entities. Further information can be found in Separation section of this annual report. As a result of this intended strategic reorganization, Galapagos will be a much smaller organization post separation. This plan, together with the fact that the average number of employees during 2024 at balance sheet date did not exceed the threshold of 750 employees, resulted in the decision to use the “phasing in provisions” in accordance with Appendix C of ESRS 1, which are included in the Reference table.
Most of the quantitative data included in this report have been directly sourced from our systems. Any data obtained through alternative methods, such as estimations or extrapolations within our value chain, are clearly identified as such and include a degree of estimation uncertainty.
The basis of preparation, accuracy levels, estimation of outcome uncertainty, and, where applicable, planned actions to improve the accuracy and reduce uncertainty in future annual reports are disclosed for each material topic in the topical reporting sections of this report.
For most disclosures, except for disclosures in the environmental information, comparative data are not available for 2024 as reporting definitions were aligned with ESRS definitions this year. If comparative data are available but not subject to limited assurance procedures, it is clearly marked in the disclosures.
The inclusion of information and data in the sustainability statements is not an indication that such information or data, or the subject matter of such information or data, is material to us for purposes of applicable securities laws or otherwise. The principles used to determine whether to include information or data in this report do not correspond to the principles of materiality or disclosure contained in the United States (U.S.) securities laws used to determine whether disclosures are required to be made in filings with the U.S. Securities and Exchange Commission (SEC), or principles applicable to the inclusion of information in financial statements.