Own Workforce

S1 Own Workforce

We recognize that a number of S1 topics are of material relevance to us (as described below in ‘Material impacts, risks and opportunities). As an R&D organization, with 599 employees in Europe and 74 employees in the U.S., we comply with all legislation designed to provide protection to our employees, which includes topics related to working conditions such as adequate wages, leave entitlement and equal opportunities. We not only manage risks associated with these topics, which carry both a financial and reputational impact, but also provide opportunities to attract and retain the best talent. We have therefore established policies which are in line with the UN Guiding Principles on Business and Human Rights, International Labour Organization Declaration on Fundamental Principles and Rights at Work and the OECD Guidelines for Multinational Enterprises. Given that privacy is of material relevance to our workforce, we have also taken steps to minimize the risk of potential data breaches and established controls to limit the likelihood of data breaches related to employee data. We have not yet established specific targets in relation to these topics, but steps will be taken in the following months to identify relevant metrics and determine appropriate targets to measure progress on these topics in the future.

Material impacts, risks and opportunities and their interaction with strategy and business model

Adequate Wages

Ensuring adequate wages across our organization is a positive opportunity to attract and retain top talent while fostering long-term human capital development. In the short term, we are committed to fair compensation practices that align with industry standards and promote equity. These efforts are supported by well-being initiatives, commitments to fair pay, and policies that ensure equal opportunities for all employees. By prioritizing adequate wages, we aim to enhance employee satisfaction, productivity, and loyalty.

Work-life Balance

Promoting work-life balance is a key opportunity to support employee well-being and productivity within our organization. In the short term, we are focusing on providing family leave and mental health support to help employees thrive professionally and personally. This includes implementing supportive family leave policies and mental health initiatives to create a healthier, more resilient workforce.

Gender Equality & Equal Pay

Addressing gender equality and equal pay is a critical risk factor for our operations, with potential short-term impacts on our reputation and ability to attract and retain diverse talent. To mitigate this risk, we are actively benchmarking compensation practices to ensure equal pay and fostering diversity through policies that promote fairness and inclusion. These actions align with our broader commitment to building an equitable and inclusive workplace.

Employment of Persons with Disabilities

Inclusive hiring practices present a positive opportunity to strengthen team diversity and enhance our reputation as an employer of choice. In the short term, we are advancing policies that promote inclusion and provide tailored support for employees with disabilities. These efforts underscore our dedication to fostering a workforce that values the unique contributions of all individuals.

Diversity

Diversity remains a significant opportunity to enhance our team’s capabilities, support innovation, and bolster our reputation as an inclusive employer. In the short term , we are driving initiatives through DEIB (Diversity, Equity, Inclusion & Belonging) workstreams, targeting workforce representation and inclusive practices across the entire organization.

Privacy

Privacy and data security are critical areas of risk, particularly in the short term, as we must manage challenges related to cybersecurity, potential data breaches, and regulatory compliance, such as GDPR. To mitigate these risks, we are investing in robust cybersecurity systems and we conduct third-party assessments, and maintain rigorous compliance measures. These initiatives are designed to safeguard sensitive and personal data, protect our clinical study information, and uphold stakeholder trust.

Policies related to own workforce

Specific policies established to address risks and opportunities in this area include:

• Code of Conduct – this sets out the essential standards of business conduct that Galapagos and its employees are expected to apply at all times. The CEO is accountable for this policy which is also approved by the Galapagos Board of Directors.
• Anti-Discrimination & Anti-Harassment Policy – prohibiting discrimination and/or harassment as per the definitions of the UN Global Compact. The Chief HR Officer and General Counsel are accountable for this policy.
• Speak-Up Policy – this sets out the way in which any concern that employees have can be managed in a consistent and appropriate way. The General Counsel is accountable for this policy.
• Data Protection Policy – describes how personal data must be processed within the Galapagos group of companies and is aligned with the requirements of GDPR. The General Counsel is accountable for this policy.

Mitigating, Preventing and Remediating Actions

In recognizing local legislation, we have established Works Councils in countries where this is required, enabling employees to be appropriately represented in relation to their rights, including establishing collective bargaining where this may be necessary. We make a commitment to fair compensation which is monitored through benchmarking exercises. This ensures equal pay and supportive family leave and mental health initiatives for employees. In addition, in order to address gaps and opportunities in Diversity, Equity, Inclusion and Belonging, we established a DEIB Workstream to ensure continued improvement in these areas. Specific activities performed in 2024 are described above in the section ‘Our call for action by 2028’. With regard to Data Privacy, we performed an in-depth assessment of the different personal data and information we collect and we refined our internal inventory of personal data and information to further enhance our Data Privacy strategy. We regularly monitor compliance with our data policies and continue to evolve our risk management policies to address the evolving risks.