Given the focus on marketing and distributing of an existing product which is produced in facilities which have already been established, PS 5: Land Acquisition and Involuntary Resettlement, PS 6: Biodiversity Conservation and Sustainable Management of Living Natural Resources; PS 7: Indigenous Peoples and PS 8: Cultural Heritage are not triggered.

 This is category B project according to IFC’s Policy on Environmental and Social Sustainability. Based on information reviewed by IFC, the proposed business activities are considered to involve potentially limited adverse E&S risks and impacts that are few in number, generally site-specific, largely reversible, and readily addressed through mitigation measures.

 Upon the Exelon Acquisition, Knight will continue to manufacture the product through contract manufacturing organizations (CMOs). For transport and distribution activities, Knight will continue to engage with reputable third-party logistic providers (3PLs) where products are stored as well as provide transportation services, consistent with Knight’s operations in Latin America and Canada. The product’s sales and marketing will be done through Knight’s sales representatives and marketing teams located in certain countries in Latin America.

Knight’s activities are regulated by health agencies from each country where the company operates. Knight or its license partner is required to obtain marketing authorizations for each of its products in all countries as well as licenses for operational activities including importation, distribution, storage, and manufacturing. Similarly, CMOs and 3PLs are required to obtain operating licenses and authorizations from relevant authorities. In addition, contractual agreements with Knight include standard clauses and provisions to ensure compliance with local laws and regulations. Knight as well as its partners conduct audits on suppliers and sub-contractors.

The company’s Supply Chain team, reporting to the Chief Financial Officer, is responsible for overseeing 3PLs activities, including product storage in warehouses. The Scientific Affairs department, through its quality assurance and quality control teams, oversees that products supplied by CMOs are produced in a safe and consistent standards to ensure compliance with health authorities regulations (Good Manufacturing Practices). Audits, sites visits, and visual inspections are performed to verify operating conditions.

Knight rent office space and are subject to the emergency response plans as applied to the respective offices. 

  As of September 2022, Knight employed 692 direct employees that are distributed across 11 countries and has an equal distribution of gender in the workforce, with 365 women and 327 men. The management team includes 63% of women and 25% of visible minority groups. Women make up for 75% of country / cluster managers.

The largest workforce is located in Argentina and Brazil. There are 321 employees in Argentina and 123 employees.in Brazil. Most of Knight’s employment contracts are for full-time permanent employees. Contract workers are only hired sporadically to cover specific needs such as replacements during maternity leave.

Sales representatives are direct employees, and they travel regularly to visit doctors and are distributed across the countries where Knight is present.

Human Resources Policies and Procedures

Knight’s employees abide by the company’s Code of Business Conduct. This overarching document is applicable to all directors, officers, consultants, and employees. As per the document, all personnel are expected to follow the laws and regulations of countries in which the company operates. In addition, the document includes provisions for harassment and non-discrimination, diversity and inclusion, and fair and equal treatment of all employees. The Code of Business Conduct and Ethics training program has been rolled out and as of September 2022, 88% of employees have signed the policy and completed the training. In addition to the Code of Business Conduct, offices at the country level have their own human resources policies and procedures in accordance with local regulations. HR Business Partners oversee HR related issues at the local level.

Working Conditions and Terms of Employment

Knight complies with relevant labor legislation in each country where it operates. Employment contracts are generally for full-time permanent employees and are adapted on a country-by-country basis to meet local laws and regulations.

Workers’ Organizations

Knight respects freedom of association within its workforce and has unionized employees in Brazil and Argentina. Working conditions are negotiated through Collective Bargaining Agreements on a yearly basis.

Labor Grievance Mechanism

Labor complaints are handled by the local Human Resources team, followed by escalation to Corporate Human Resources, if needed. The Code of Conduct includes details on the grievance mechanism; as per the document’s provisions, complaints must be treated with seriousness, sensitivity, and confidentiality. Anonymous complaints can be submitted through a Whistleblower Hotline hosted by a third-party company. The Hotline is available by e-mail or by phone both for internal and external grievances through GBT’s website.

All complaints are investigated either through the legal or compliance teams. When complaints involve senior employees or collusion cases, investigation is performed by third-party inspectors. In addition, Knight has an Ethics Committee composed by the company’s president, the CBO, the CFO, the VP Legal and Compliance, and an external board member. The Committee is responsible for defining the course of action for active grievances and updating the board on their status on a quarterly basis.

Management of the COVID-19 pandemic

Knight has implemented various measures to limit the spread of SARS-CoV-2 within its workforce. As of September 2022, office employees worked under a hybrid model with a combination of home office and in office work. Sales representatives can visit doctors physically or virtually depending on physician preference and masks are worn when mandatory.  Biosecurity protocols include hand sanitizer and hand washing and optional use of masks in the office. In order to limit exposure to others, employees are asked to work from home should they or someone in their immediate family have any symptoms of COVID- 19. 

  Knight manages expired or non-conforming products through licensed third-party companies. Before proceeding with the final disposal, Knight is required to request the authorization of relevant local agencies. Once the authorization is granted, Knight engages the services of external companies specialized in the physical destruction of pharmaceutical products. These third-party companies are also required to hold relevant licenses and authorizations provided by the country’s health authorities.  Knight follows the process closely and conducts regular audits to verify operation conditions and ensure compliance with contractual requirements.                                           

 Knight does not own a transport fleet and all transportation is done through 3PLs and freight forwarders that are specialized in the management of pharmaceutical products (Good Distribution Practices). Land transportation is used for local distribution (short distance) and air transport is used for long distances.

The company does not directly engage with security services. Risks related to product theft during transport and distribution centers are managed by 3PLs who implement mitigation measures such as presence of security guards in warehouses and security vehicles along medium-long transits and during local distributions

 Arvind Utchanah

Chief Financial Officer

T. +598.2626.2344

Email: info@knighttx.com

Website: www.gud-knight.com