Eli Lilly and Company (LLY) — ESG & Values Scores

Environment story

Lilly discloses a 2025 renewable-electricity figure (~80%) but this blends onsite generation, purchased power, and renewable energy certificates (RECs), limiting verification of direct operational decarbonization. Scope 3 emissions data and a formal net-zero target year are not disclosed in the reviewed filings, triggering rubric deductions and a greenwashing adjustment for REC-inclusive renewable claims. No toxic-waste or water-consumption controversies were identified in the source documents.

Criticisms on file

Renewable electricity claim (~80%) includes renewable energy certificates rather than solely direct operational power-source shifts, raising verification concerns about the credibility of the disclosed environmental progress.
Source: LLY_proxy.txt (2026 DEF 14A, CEO letter/Proxy Statement Summary)
No disclosed Scope 3 (supply chain / product lifecycle) emissions data or net-zero target year in reviewed 10-K or proxy materials.
Source: LLY_10k.txt (Item 1A Risk Factors — Regulatory/Sustainability disclosures section)

Disclosed initiatives

Renewable Electricity Procurement

Company reports generating or purchasing approximately 80% of 2025 electricity from renewable sources, including onsite generation, purchased energy, and RECs.

Partial reduction in reported Scope 2 footprint; portion attributable to certificate purchases rather than verified direct power-use reduction.
Manufacturing Capacity Expansion

Significant ongoing investment in manufacturing capacity and long-term supply agreements to meet product demand.

Not explicitly tied to decarbonization infrastructure in disclosed filings.

Social story

Disclosed materials reference long-standing pay equity study practices and health-access commitments but do not provide quantified CEO-to-worker pay ratio, workforce diversity percentages, or turnover data in the reviewed excerpts. No documented union-suppression activity, strikes, or supply-chain human-rights violations (e.g., cobalt/lithium mining) were identified in the source documents, resulting in no rubric deductions based on available evidence.

Criticisms on file

No material criticisms on file for this pillar.

Disclosed initiatives

Pay Equity Studies

Company states it has conducted U.S. workforce pay equity studies for over 20 years and has recently extended studies to non-U.S. workforce populations, making adjustments where warranted.

Structural process for identifying and remediating pay disparities.
Global Health Access Goal

Commitment to healthcare access for 30 million people in resource-limited settings annually by 2030.

Stated public health access target; progress metrics not detailed in excerpts.
New Employee Onboarding & Leadership Development

6-month onboarding program and an 18-month curriculum for new leaders focused on five essential skills; expanded mentorship and coaching resources.

Formalized talent development infrastructure.

Governance story

Lilly maintains a single class of common stock (no dual-class structure) and is proactively proposing to eliminate its classified board and supermajority voting provisions based on investor feedback. However, the company faces multiple active legal and regulatory proceedings — including a Texas Attorney General lawsuit alleging inducements to prescribers, an ongoing Michigan investigation into insulin pricing practices, and a price-fixing lawsuit brought by University of Pennsylvania Health System — which weigh on the governance score. The board also recommended against shareholder proposals for an independent board chair and an annual lobbying disclosure report, indicating limited voluntary transparency on political spending.

Criticisms on file

Texas Attorney General lawsuit alleging Eli Lilly bribed/induced medical providers to prescribe its most profitable drugs, including GLP-1 medications (filed August 2025).
Source: LLY_proxy.txt, Item 6 Shareholder Proposal supporting statement, citing texasattorneygeneral.gov press release
Ongoing Michigan state investigation/litigation regarding insulin pricing practices, dating to 2022 and continuing into November 2025.
Source: LLY_proxy.txt, Item 6 Shareholder Proposal supporting statement, citing michiganpublic.org
Price-fixing lawsuit filed July 2025 by University of Pennsylvania Health System alleging 20 years of coordinated pricing on diabetes drugs including insulin, naming Eli Lilly as one of three defendant pharmaceutical companies.
Source: LLY_proxy.txt, Item 6 Shareholder Proposal supporting statement
Board recommended against shareholder proposals for an independent board chair and for an annual lobbying expenditure disclosure report, limiting voluntary governance transparency in these areas.
Source: LLY_proxy.txt, Items 6 and 7, Shareholder Proposals section

Disclosed initiatives

Elimination of Classified Board & Supermajority Voting

Board proposed (Items 4 & 5, 2026 proxy) amendments to articles of incorporation to eliminate the classified board structure and 80% supermajority voting requirements, based on investor feedback.

Would increase board accountability and align with majority-voting governance norms if approved.
Auditor Independence Practices

Annual evaluation of independent auditor (EY), mandatory rotation of lead engagement and global coordinating partners.

Supports audit quality and independence controls.
Compensation Recovery (Clawback) Policy

Formal clawback policy referenced in governance disclosures.

Enables recovery of erroneously awarded incentive compensation.

These are Missionomics' own editorial scores — directional signals built from disclosed facts under a published method, not certifications or definitive ratings of Eli Lilly and Company. Coverage and confidence vary by data point, and figures can lag real-world changes. Read the full Methodology for sourcing, scoring, and correction details — or open Eli Lilly and Company in the app for interactive charts and portfolio building.

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