Stryker Corporation
Climate Impact & Sustainability Data (2020, 2023)
Reporting Period: 2020
Environmental Metrics
Renewable Energy Share:15%
ESG Focus Areas
- Diversity, Equity and Inclusion (DE&I)
- Environmental Sustainability (Carbon Neutrality)
- Responsible Procurement
- Supply Chain Transparency
- Employee Safety
- Medical Education
- Community Engagement
Environmental Achievements
- 20,000 tons of carbon emissions reduced in Ireland through renewable energy contract
- 15% of electricity use across Stryker from renewable sources by end of 2020
- Significant progress in furthering supply chain management efforts, including creation of Procurement Center of Excellence and initiation of human rights and environmental assessments for targeted portions of supply base
Social Achievements
- Improved employee safety with excellent reduction in injury rates in manufacturing facilities
- Moved up three spots to #5 in Fortune’s World’s Best Workplaces list
- Received Great Place to Work awards around the world
- Strong progress on Diversity, Equity and Inclusion (DE&I) by empowering Employee Resource Groups and focusing on inclusive management practices
- Launched Think Twice training program on unconscious bias, with over 8,300 employees participating
- Expanded ERGs to nine
- Donated $55 million worth of financial and product support
- Trained more than 50,000 HCPs and conducted 925 virtual and 1,553 live courses
Governance Achievements
- Amended Governance and Nominating Committee Charter to give oversight responsibility of corporate responsibility matters
- Established a new Global IC Governance Committee to review and address restricted party decisions and manage the country entry and exit process
- 95 percent e-learning completion rate target exceeded for code of conduct training
Climate Goals & Targets
Medium-term Goals:
- Carbon neutral for all Stryker facilities (scopes 1 and 2) by 2030
Short-term Goals:
- 20% reduction in carbon emissions (scopes 1 and 2) by 2024
Environmental Challenges
- Sales declines across multiple divisions due to halting of elective procedures during COVID-19 pandemic
- Challenges in the rollout of enterprise resource planning (ERP) program
- COVID-19 pandemic impact on operations and financial results
- Supply chain disruptions
Mitigation Strategies
- Effective COVID prevention measures
- Flexible work practices and focus on employee well-being
- Decisive action to curtail spending
- Upgrading indirect channel business and governance model
- Increased production of products essential for COVID-19 response
- Development of a new low-cost Emergency Relief Bed (ERB)
- Shift to more sustainable modes of transportation such as sea freight
Supply Chain Management
Supplier Audits: Approximately 1,000 audits completed in 2020
Responsible Procurement
- Supplier code of conduct addressing non-discrimination, child labor, forced labor, human trafficking, safe working environments, immigration laws, wages, benefits, working hours, and freedom of association
Climate-Related Risks & Opportunities
Reporting Standards
Frameworks Used: GRI, SASB
Certifications: ISO 13485:2016
Sustainable Products & Innovation
- Reprocessed MyoSure tissue removal device
- Additive Manufacturing (3D printing) of implants
Awards & Recognition
- #5 Fortune World’s Best Workplaces
- #8 Fortune 100 Best Companies to Work For
Reporting Period: 2023
Environmental Metrics
Total Carbon Emissions:174,442 tCO2e/year (2022)
Scope 1 Emissions:26,705 tCO2e/year (2022)
Scope 2 Emissions:117,059 tCO2e/year (2022)
Scope 3 Emissions:68,875 tCO2e/year (2022)
Renewable Energy Share:90% in Europe (2023)
Total Energy Consumption:1869 TJ/year (2022)
Carbon Intensity:9.5 MT CO2e/million USD (2022)
ESG Focus Areas
- Stronger People
- Healthier Planet
- Good Business
Environmental Achievements
- 13% reduction in Scope 1 and 2 carbon emissions as of year-end 2022 (compared to a 2019 baseline)
- 8 sites added to Stryker’s renewable energy portfolio through electrical agreements
- Approximately 70% of 2022 North American electricity volume covered by Renewable Power Purchase Agreement annually
- 45 energy efficiency projects completed in 2023
Social Achievements
- Named a World’s Best Workplace for the seventh year in a row
- Scored in the top 15% of companies Gallup surveyed for employee engagement
- $8.2M in employee and match contributions to global nonprofits
- 0.6% increase in representation of women (global) and 0.4% increase in race/ethnicity representation (U.S. only) compared to 2022
- Over 132,000 healthcare professionals trained and over 8,000 events held in 2023
Governance Achievements
- 50% of Stryker’s Board members identify as people of color, and 40% identify as women
- 94% of employees completed training on the refreshed Code of Conduct
- ESG metrics included in the compensation plans of Named Executive Officers (NEOs)
Climate Goals & Targets
Long-term Goals:
- Make all Stryker facilities carbon neutral (Scopes 1 and 2) by 2030
Medium-term Goals:
- Power all facilities with 100% renewable electricity by 2027
- Engage 85% of direct suppliers (by spend) on ESG performance assessments by 2027
Short-term Goals:
- Reduce Scope 1 and 2 carbon emissions by 20% by 2024 (compared to 2019 baseline)
Environmental Challenges
- Supply chain disruptions
- High inflation, rising labor costs and elevated interest rates
- Evolving geopolitical and regulatory landscape
- Sophisticated and prevalent cyber threat actors
Mitigation Strategies
- Supplier ESG engagement and assessment
- Flexible payment solutions, reprocessing high-quality equipment, tailoring solutions for regional needs
- Adapting to evolving geopolitical and regulatory landscape, implementing updated cybersecurity solutions
- Expanding cybersecurity maturity and ability to detect and protect against threats
Supply Chain Management
Supplier Audits: 59% of direct suppliers (by spend) assessed on ESG performance (2023)
Responsible Procurement
- Supplier Code of Conduct
- Conflict Minerals Policy
- Supplier diversity initiatives
Climate-Related Risks & Opportunities
Opportunities
- Renewable energy investments
- Energy efficiency improvements
Reporting Standards
Frameworks Used: GRI, SASB, TCFD
Certifications: ISO 13485:2016, ISO 14001, ISO 45001, ISO 27001
Third-party Assurance: Clearstream Solutions
Sustainable Products & Innovation
- eIFUs
- Reprocessed medical devices
- Additive manufacturing implants
- Neptune 3 waste management system
Awards & Recognition
- Great Place to Work World’s Best Workplaces
- Fortune 100 Best Companies to Work For
- Fortune World’s Most Admired Companies
- Fortune Best Workplaces for Women
- Fortune Best Workplaces for Millennials
- Human Rights Campaign Foundation Top Scorer, Corporate Equality Index
- 2023 Women in MedTech (WiMT) Champion Award (Australia)
- U.S. Department of Energy’s 2023 Better Practice Award