About Our Reporting

Our reporting is the primary way we inform key stakeholders about our sustainability ambitions and progress. Our stakeholders include investors, potential and current employees, customers and consumers, suppliers, non-governmental organizations, regulators and others.

Understanding that each group’s needs differ, we publish a suite of reporting elements targeted at various sets of stakeholders. We combine disclosure of strategy, policy, data and case studies, according to our understanding of public interest and guided by key sustainability and reporting frameworks. Unless otherwise noted, our sustainability data reflects progress made during the company’s fiscal year January 1, 2025 through December 31, 2025. We discuss data and trends from previous years, and in some cases, relevant updates that have occurred in the first half of 2026. Additionally, we may share future intentions, where relevant, which will be subject to the forward-looking statements cautionary language below.

Our reporting suite comprises:

• Sustainability Highlights Report: A high-level summary of our sustainability agenda and annual progress organized by impact area. It aims to reflect the integration between sustainability and our business and is designed to link seamlessly with the Sustainability Impact Areas Index for more detail and the latest updates. Readers can also download a PDF of the report.

• Sustainability Impact Areas Index: An evergreen deep-dive on nearly 30 topics that aims to provide an accessible, consistent framework for those looking for greater depth on our sustainability approaches and progress.

• Sustainability Data Download: Time-series data for our key sustainability metrics, intended to support analysis primarily for investors, third-party raters and NGOs.

• Indices and framework responses and other topic-specific disclosures: These map our reporting to specific metrics established by key reporting frameworks including TCFD, SASB, UN SDG's and CDP (climate, water). It also includes specialized reporting, such as required state climate reports.

Delivering the sustainability reporting suite is managed and executed by the Corporate Sustainability team, with significant partnership from legal, communications and the various subject matter experts (SMEs) of the topics covered in reporting.

Scope

As a general matter, organizational changes (e.g., acquisitions and divestitures) are reflected in our reporting for the fiscal year in which they occur, or where this is not practicable, in the earliest subsequent reporting period possible. Organizational changes (e.g., acquisitions, mergers, and divestitures) are evaluated to determine if they have a significant impact on our sustainability performance. To the extent data becomes available, reported years for impacted metrics may be recast to consistently reflect the organizational change. Not all metrics may be recast, as recasting is dependent on the availability and reliability of data from the acquired or divested entity. Our reporting does not include joint ventures, partially owned subsidiaries or outsourced operations. In addition, data may not be directly comparable across reporting periods due to organizational changes (e.g., acquisitions and divestitures), or methodology refinements.

At times, our reporting references the Eli Lilly and Company Foundation, commonly referred to as the Lilly Foundation. The Lilly Foundation, which was established in 1968 and is supported by donations from Eli Lilly and Company, is a separate U.S. tax-exempt private foundation that provides support to eligible U.S. organizations consistent with Lilly Foundation’s philanthropic priorities. Our reporting may also reference other tax-exempt organizations, including the Lilly Cares Foundation, a separate U.S. charitable organization that offers the Lilly Cares Foundation Patient Assistance Program, which helps qualified people in need receive donated Lilly medicines at no cost. Eligibility for the support provided by any tax-exempt organization is determined by such tax-exempt organization.

Data Measurement and Uncertainty

Lilly and its affiliates may provide medicines to separate charitable organizations that offer free Lilly medicines to qualifying patients. Throughout our reporting, such products are valued at wholesale acquisition costs.

Lilly follows structured processes to collect, evaluate, calculate and validate the data included in our reporting. We consider external standards in deciding what data to collect and report. The data presented in our reporting are collected using various methodologies, which in some instances are based on assumptions and estimates in which there are inherent uncertainties and limitations. For example, information may come from third-party sources and operations outside of our control. While we believe such information is reasonably accurateand is based on reasonable principles and methodology, the third-party collection and validation of this data is beyond our direct control. In addition, the achievement of certain sustainability goals and targets may be dependent on the actions of our partners, suppliers and other third parties, all of which are outside of our control.

Furthermore, environmental data in this report is subject to measurement uncertainties resulting from limitations inherent to the nature and the methods used for determining such data, including that data may rely on extrapolation, modeling, or industry-average emission factors where primary data is unavailable. The precision of different measurement techniques may vary.

As we improve our methodologies and as new information becomes available, we may continue to revise our estimates and assumptions. Methodology changes may include, without limitation, changes in a calculation, improvements in the quality of data, greater data granularity or updates to available third party-reported data. Such updates may result in material changes to our calculations and may also result in adjustments made to the current and previous periods. Changes may also be driven by evolving external standards, frameworks, or regulatory requirements (e.g., updates to GHG Protocol guidance, or EU CSRD requirements), as applicable.

Frameworks

Where possible, we aim to report in a consistent way that allows comparison of our own performance over time and between companies. To this end, we align with prominent Sustainability reporting frameworks often preferred by investors. We also take into account the information desired by NGOs, customers and ESG raters.

As frameworks arise or change, our Corporate Sustainability Team, together with key internal partners, evaluates their utility and feasibility when deciding whether to adopt or continue utilizing them. Factors considered include the intended audience, our ability to compile quantitative data to a requisite level of governance, risk associated with disclosure and relevance to the business. As a result of these assessments, applicable portions of our reporting have been prepared in alignment with the Sustainability Accounting Standards Board (SASB) framework for Biotechnology and Pharmaceuticals and informed by the Task Force on Climate-related Financial Disclosures (TCFD).

Additionally, our global health, safety and the environment (HSE) management system is consistent with third-party standards such as the International Organization for Standardization (ISO) ISO 14001, ISO 45001 and the American Chemistry Council’s Responsible Care Management System standards.

Sustainability reporting is undergoing significant and rapid transformation as jurisdictions around the world begin to institute mandatory reporting regulations. Cross-functional teams across Lilly are collaborating on compliance preparations, building on the company’s foundation of voluntary reporting.

Other Important Information

Trademarks and Trade Names

Trademarks or trade names referred to in our sustainability reporting are the property of Lilly, or, to the extent trademarks or trade names belonging to other companies are referenced in our reporting, the property of their respective owners. Solely for convenience, the trademarks and trade names in our reporting may be referred to without the ® and ™ symbols, but such references should not be construed as any indicator that the company or, to the extent applicable, their respective owners will not assert, to the fullest extent under applicable law, the company’s or their rights thereto. We do not intend the use or display of other companies’ trademarks and trade names to imply a relationship with, or endorsement or sponsorship of us by, any other companies.

Updates to Reported Information.

The information in our sustainability reporting, including the forward-looking statements, are made as of the last updated date on the page and are expressly qualified in their entirety by the risk factors and cautionary statements described below in the Forward-Looking Statements section. We undertake no obligation to update the information or forward-looking statements in the report or on our website to reflect subsequent events or circumstances, except as required by law. More current information on notable events about the company’s sustainability efforts may be included elsewhere in the company’s disclosure, including Forms 10-K, 10-Q and any 8-Ks filed with the Securities and Exchange Commission, its press releases or the Stories page of the company’s website.

Other Cautionary Information

Our sustainability reporting is prepared using definitions, frameworks, standards, and methodologies that may differ in significant ways from those governing mandatory regulatory disclosures, including filings made pursuant to U.S. Securities and Exchange Commission (SEC) rules and regulations. Accordingly, the information contained in our sustainability reporting should not be interpreted, relied upon, or compared to our regulatory filings.

No Implication of Securities Materiality

References to, or inclusion of, any information in our sustainability reporting do not constitute a representation that such information is "material" for purposes of applicable securities laws. Where we use terms such as "significant," "material," or "materiality" in this report, those terms reflect sustainability-specific definitions and stakeholder considerations, and should not be read as meeting the legal threshold of materiality under U.S. securities laws, the EU Corporate Sustainability Reporting Directive (CSRD), International Sustainability Standards Board (ISSB) or similar standards or regulations, or any analogous laws or regulations in other jurisdictions.

Our reporting includes statements regarding various policies, values, standards, approaches, procedures, processes, systems, programs, initiatives, assessments, technologies, practices and similar measures related to our operations (“Policies and Procedures”). References to Policies and Procedures in our reporting do not represent guarantees or promises about their efficacy or continued implementation, or any assurance that such Policies and Procedures will apply in every case. Such Policies and Procedures are subject to risks, uncertaintiesand other factors, some of which are beyond our control and are difficult to predict. There may be exigent circumstances, factors, or considerations that may cause the implementation of other measures or exceptions in specific instances.

Our ability to achieve any stated environmental, social or governance goal, target or objective is subject to numerous factors and conditions, many of which are outside our control. We can give no assurances that any plan, initiative, goal, target, objective, commitment or expectation will be achieved.

Our reporting contains references or links to other websites maintained by third parties over whom we have no control. We make no endorsement of such websites, nor do we make any representations or warranties with respect to any information contained in such third-party websites. Furthermore, use of any such third-party site is at your own risk and will be governed by such third-party’s terms and conditions.

Forward-Looking Statements

This sustainability report contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 (Exchange Act), and are subject to the safe harbor created thereby under the Private Securities Litigation Reform Act of 1995. These statements are typically accompanied by the words "may," "could," “aim,” “hope,” “plan,” “estimate,” “project,” “intend,” “expect,” “believe,” “target,” “anticipate,” “seek,” “will,” “continue” and similar expressions or future or conditional verbs. These statements are based on management’s assumptions, estimates and expectations at the time the statements were posted, expressed in good faith and believed to have a reasonable basis, including statements regarding our sustainability targets, goals, commitments and programs and other business plans, initiatives, aspirations and objectives. However, we can give no assurance that any expectation or belief will occur or be accomplished. Readers, therefore, should not place undue reliance on forward-looking statements. The following include some but not all of the factors that could cause actual results or events to differ from those anticipated:

• the significant costs and uncertainties in the pharmaceutical research and development process, including with respect to the timing and process of obtaining regulatory approvals and the ability of the company's clinical trials to meet expectations;

• the impact and uncertain outcome of acquisitions and business development transactions and related costs;

• intense competition affecting our products, pipeline, or industry;

• market uptake of launched products and indications;

• continued pricing pressures and the impact of actions of governmental and private actors affecting pricing of, reimbursement for, and patient access to pharmaceuticals, or reporting obligations related thereto;

• implementation of our voluntary agreement with the U.S. government related to drug pricing and access;

• developments or uncertainties related to our or competitive products, including as may relate to safety or efficacy concerns;

• dependence on relatively few products or product classes for a significant percentage of our total revenue and a consolidated supply chain;

• the expiration of intellectual property protection for certain of our products and competition from generic and biosimilar products;

• our ability to protect and enforce patents and other intellectual property and changes in patent law or regulations related to data package exclusivity;

• information technology system inadequacies, inadequate controls or procedures, security breaches, or operating failures;

• unauthorized access, disclosure, misappropriation, or compromise of confidential information or other data stored in our information technology systems, networks, and facilities, or those of third parties with whom we share our data and violations of data protection laws or regulations;

• issues with product supply, regulatory approvals, or other negative outcomes stemming from manufacturing difficulties, disruptions, or shortages, including as a result of unpredictability and variability in demand, labor shortages, third-party performance, quality, cyber-attacks, or regulatory actions related to our and third-party facilities;

• reliance on third-party relationships and outsourcing arrangements;

• the use of artificial intelligence or other emerging technologies in various facets of our operations, including partnerships related to the use of, or the sharing of, such technologies with third parties, which may exacerbate competitive, regulatory, litigation, cybersecurity, and other risks;

• the impact of global macroeconomic conditions, including uneven economic growth or downturns or uncertainty, trade and other global disputes and interruptions, including related to tariffs, trade protection measures, and similar restrictions, international tension, conflicts, regional dependencies, or other costs, uncertainties, and risks related to engaging in business globally;

• fluctuations in foreign currency exchange rates, changes in interest rates, and inflation or deflation;

• significant and sudden declines or volatility in the trading price of our common stock and market capitalization;

• litigation, investigations, or other similar proceedings involving past, current, or future products, activities, or intellectual property;

• changes in tax law and regulation, tax rates, or events that differ from our assumptions related to tax positions;

• regulatory changes, developments, and uncertainty;

• regulatory oversight and actions regarding our operations and products;

• regulatory compliance problems or government investigations;

• risks from the proliferation of counterfeit, misbranded, adulterated, or illegally compounded products;

• actual or perceived deviation from environmental-, social-, or governance-related goals, requirements or expectations;

• asset impairments and restructuring charges; and

• changes in accounting and reporting standards.

For additional information about the factors that affect the company’s business, please see the company’s latest Forms 10-K, 10-Q, and any 8-Ks filed with the Securities and Exchange Commission. We urge you to consider all of the risks, uncertainties and factors identifiedabove or discussed in such reports carefully in evaluating the forward-looking statements in this report.

We are seeing increased calls for enhanced reporting, including in the U.S., the EU and beyond. We continue to monitor the regulatory environment and aim to deliver transparent and stakeholder-centric reporting as we work towards achieving our sustainability ambitions. As part of this, we continually strive to enhance our systems, processes and controls.

Related Topics

• Transparency