Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainable health and well-being
• Sustainable business practices
• Ethical business conduct
• Respect for human rights
• Environmental sustainability
• Employee well-being

Environmental Achievements

• Reduced total waste by 26% at Faun Pharma AS
• Increased source-separated waste to 54% at Faun Pharma AS
• Two key customers switched to more sustainable packaging at Faun Pharma AS
• Reduced number of printed brochures from four to two, focusing on digital tools
• Implemented a subscription model for products to reduce transport deliveries

Social Achievements

• Sponsored education for 985 children in India through the Zinzino Foundation
• Maintained low sick leave of 3% among employees
• Offered health-related activities and opportunities for exercise to employees
• 61% women in the workforce
• Implemented a whistleblower policy

Governance Achievements

• Implemented an external whistleblowing system (Visslan)
• Zero tolerance for corruption and bribery
• Annual adoption of Business Ethics Guidelines and Code of Conduct by the Board of Directors
• Regular training for employees involved in purchasing and for partners in Asia on ethical regulations

Climate Goals & Targets

Environmental Challenges

• High inflation and resource shortages increasing raw material and freight costs
• War in Ukraine impacting revenues (estimated SEK 2 million/month loss)
• Challenges with new sales and decline in active distributors in Nordic countries
• Volatile performance in APAC region due to Covid-19 restrictions
• Risks related to climate change impacting supply chain and raw material availability
• Risks related to corruption in the purchasing process and distributor chain, particularly in Asia

Mitigation Strategies

• Incremental price adjustments to distributors and customers
• Adjustments to remuneration model for global distributors
• Efficiency improvement process reviewing internal and external costs
• Financial support for distributors in Ukraine
• Activities to stimulate distributors in Nordic countries (events)
• Close collaboration with distributors in APAC to educate on business model
• Prioritizing environmental aspects in operations, sustainable sourcing
• Regular training for employees and partners on ethical regulations

Supply Chain Management

Supplier Audits: All suppliers are registered and approved; suppliers of goods are risk-assessed using SSAFE

Responsible Procurement

• Friends of the Sea certified fishing organizations for fish oil
• Careful selection of suppliers for ingredients, packaging, printing, and logistics
• Prioritizing natural ingredients over synthetic ones

Climate-Related Risks & Opportunities

Physical Risks

• Climate disasters affecting raw material availability and pricing
• Damage to ocean environment affecting fish oil supply

Transition Risks

• Increased taxes or necessary investments due to environmental policy decisions
• Changes in the supply and cost of renewable fuels

Reporting Standards

Frameworks Used: Annual Accounts Act

Certifications: Friend of the Sea

Third-party Assurance: Öhrlings PricewaterhouseCoopers AB

UN Sustainable Development Goals

• Not disclosed

Zinzino has identified 6 of the 17 UN SDGs where they can make a significant contribution (not specified in report)

Sustainable Products & Innovation

• BalanceOil Tutti Frutti
• HbA1c Test
• BalanceOil+ Vegan

Environmental Metrics

ESG Focus Areas

• Sustainable health and well-being
• Ethical business practices
• Sustainable direct sales
• Sustainable sourcing and production
• Employee well-being
• Human rights
• Anti-corruption

Environmental Achievements

• Faun Pharma reduced total waste by 3%, increased source-separated waste to 65%, and reduced residual waste by 8 tons (27%).
• Reduced CO2 per package sent in Nordics and Baltics by 29%.

Social Achievements

• Launched a new customer loyalty program and Express Start tool for distributors.
• eNPS score of 41.
• Organized more social events for employees.
• Introduced a weekly breakfast in the office to improve communication and collaboration.
• Zinzino Foundation sponsored 1,100 children's education in India.

Governance Achievements

• Introduced an external whistleblowing system.
• No cases of whistleblowing or corruption reported in 2023.
• Maintained high ethical standards, with zero tolerance for corruption and bribery.

Climate Goals & Targets

Environmental Challenges

• Aging customer and distributor base in Nordic countries.
• Supply chain disruptions due to unpredictable supply and increased prices of raw materials.
• Initial delivery problems in Turkey due to customs clearance.
• Volatile sales performance in APAC due to COVID-related restrictions.
• Risks related to climate change impacting raw material availability and transport.
• Risks related to corruption in the purchasing process and distributor chain, particularly in Asia.

Mitigation Strategies

• Working to rejuvenate the customer base in Nordic countries.
• Investing in machinery to increase production capacity at Faun Pharma.
• Implementing a global transformation process to improve efficiency.
• Resolving delivery problems in Turkey.
• Revising strategy for APAC region and re-launching several markets in 2024.
• Prioritizing environmental aspects in operations, monitoring legislative developments, and investing in ocean environment improvement.
• Conducting regular training for employees and partners on ethical regulations and anti-corruption measures.

Supply Chain Management

Supplier Audits: All suppliers are registered and approved; suppliers of goods are risk-assessed using SSAFE.

Responsible Procurement

• Prioritizing natural ingredients
• Working with Friend of the Sea certified fishing organizations
• Using recycled plastic packaging where possible

Climate-Related Risks & Opportunities

Physical Risks

• Climate events affecting supply chain and raw material availability.

Transition Risks

• Increased taxes or necessary investments due to environmental policy decisions.

Reporting Standards

Frameworks Used: UN Sustainable Development Goals

Certifications: Friend of the Sea, FSSC 22000, ISO 9001, GMP

Third-party Assurance: BDO Göteborg AB

UN Sustainable Development Goals

• Not disclosed

Zinzino has identified 6 of the 17 UN SDGs where they can make a significant contribution.

Sustainable Products & Innovation

• BalanceOil+ Vegan
• Biodegradable coffee capsules