Our Sustainability Approach

About This Non-Financial Group Report

With the following separate non-financial report, MorphoSys AG voluntarily provides information pursuant to Section 315b and Section 289b ff. HGB (German Commercial Code) on material non-financial aspects for the Group’s fiscal year 2020 (January 1, 2020 to December 31, 2020) and thus on those aspects relevant for an understanding of the Group’s business development, results of operations and group management as well as the effects of its business activities.

The requirements of the CSR Directive Implementation Act (CSR-RUG) were taken into account in the preparation of the non-financial report. In particular, the analysis of the material aspects as well as the description of the concepts were additionally based on the Global Reporting Initiative (GRI) standards. A full application of the GRI standard is too extensive for the MorphoSys Group at the current time and therefore not expedient.

Unless otherwise stated, the report applies to the entire MorphoSys Group according to the scope of consolidation for financial reporting purposes.

PricewaterhouseCoopers GmbH Wirtschaftsprüfungsgesellschaft (PwC) has been engaged on a voluntary base to perform a limited assurance on the non-financial report in accordance with ISAE 3000 (Revised). The report can be found ›› here.

References made in this non-financial report to information outside the Annual Report are additional information and are therefore not part of the assurance engagement.

Our Understanding of Sustainability

We are conscious of the responsibility we share for present and future generations and see sustainable action as a prerequisite for long-term business success. MorphoSys is dedicated to the discovery, development and commercialization of innovative therapies to improve the lives of patients suffering from serious diseases. To ensure sustainable business success, it is our responsibility to incorporate ESG into our daily business and base our business model on sustainable growth that is aligned with the interests of all of our stakeholders. By doing this we are focused on creating long-term value and weigh our actions in terms of their impact on the environment, society, patients and employees.

Our Business Model

Information on our business model can be found in the 2020 Annual Report ›› on page 53.

Non-Financial Risk Analysis

According to the CSR-RUG on the disclosure of non-financial information, companies must, in addition to reporting on material aspects, also disclose related risks that are linked to their own business activities, business relationships, products and services and that are very likely to have or will have serious negative effects on the material aspects according to Section 289c (2) HGB. The Group has not identified any such risks in the financial year under review on a net basis in accordance with Section 289c (3) Nos. 3 and 4 HGB. Further information on opportunities and risks can be found in the Risk and Opportunity Report section of the 2020 Annual Report ›› on page 92.

Statement on the Impact of the Global COVID-19 Pandemic

MorphoSys recognizes the impact of the global COVID-19 pandemic on healthcare systems and society worldwide, as well as the resulting potential impact on preclinical and clinical programs, especially clinical trials. Measures to mitigate the impact of the pandemic on MorphoSys’ employees and patients were implemented immediately. We continuously monitored the situation and took appropriate decisions on a case-by-case basis to ensure the safety of our employees, patients, study personnel and other stakeholders, as well as to safeguard data integrity.

More detailed information on mitigation measures and efforts to ensure normal business operations in the different areas can be found in the respective paragraphs of this report.

Materiality Analysis

The report presents the material non-financial aspects that have been determined according to their business relevance and the Group’s impact on the aspects according to Section 289c (3). The analysis was based on an environment analysis and involved the responsible departments as well as MorphoSys’ Executive Committee.

The following three topics have been identified as most relevant: business ethics and compliance, social matters and employee matters.

Materiality Analysis

Materiality scoring on impact and business relevance for identified material aspects per topic

• • • • highest score among material aspects of the respective topic, descending by points