Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Developed proprietary polymer modification technologies using recycled raw materials and a closed-loop system to reduce waste.

Social Achievements

• Not disclosed

Governance Achievements

• Established an Audit and Risk Committee and a Remuneration Committee post period end.
• Adopted a Group-wide anti-corruption and bribery policy post period end.

Climate Goals & Targets

Environmental Challenges

• Limited operations during the period made measuring carbon footprint impractical.
• Covid-19 impacted client orders.
• Early stage of operations with no guarantee of future growth.
• Technological advances could make products obsolete.
• Significant competition from organizations with greater capital resources.
• Dependence on a small number of customers.
• Potential challenges in establishing, protecting, and enforcing intellectual property rights.
• Uncertainty around product adoption and demand.

Mitigation Strategies

• Investing in production and laboratory equipment to support growth and develop new technologies.
• Moving to a two-shift operation to meet demand.
• Securing distribution relationships with multiple partners globally.
• Ongoing R&D program to generate proprietary know-how.
• Implementing an anti-corruption and anti-bribery policy.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: HACCP (GraftBio division)

Third-party Assurance: PKF Littlejohn LLP

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental Management
• Waste Reduction

Environmental Achievements

• ISO 14001 accreditation granted for Slovenian facility, minimizing waste to almost zero through closed-loop processing.

Social Achievements

• Not disclosed

Governance Achievements

• Established an Audit Committee and a Remuneration Committee.

Climate Goals & Targets

Environmental Challenges

• Increased energy consumption due to the start of manufacturing operations.
• Uncertainty associated with future revenue and reliance on market funding.
• Historically reliant on a small number of customers.

Mitigation Strategies

• Regular review of energy consumption and implementation of efficiency optimization strategies.
• Expansion of customer base and securing distribution relationships with multiple global partners.
• Monitoring the impact of inflation on the business by looking closely at gross profit margins and other key financial indicators.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: ISO 14001, HACCP

Third-party Assurance: PKF Littlejohn LLP

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Grafted Fluoropolymers

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Energy Consumption
• Waste from Production
• Diversity and Inclusion

Social Achievements

• The Group employs Yifat Steuer as its Chief Financial Officer and therefore meets the requirements for gender diversity in senior management positions.

Governance Achievements

• The Group has adopted, a code for Directors' dealings in securities which is appropriate for a company whose securities are traded on this main market and is in accordance with the requirements of the Market Abuse Regulation which came into effect in 2016.
• The Group has a zero -tolerance approach to bribery and corruption and has recently put an anti -bribery and corruption policy in place to protect the Group, its employees and those third parties to which the business engages with.

Climate Goals & Targets

Environmental Challenges

• Conflicts in the Middle East, Ukraine and the Red Sea significantly disrupted operations and presented substantial challenges to the Board’s ability to manage the future.
• Elevated logistical costs for raw materials imported from China along with cashflow risks.
• General economic turmoil in Europe leading to reduced overall demand.
• Woeful trading conditions for Graft Polymer’s Slovenian manufacturing facility.
• Loss making, recording a financial loss of £3,120,000 for the year ended 31 December 2023
• Forecasted negative cash position in the near future, leading to an increase in liability rather than a profit centre in the Slovenian entity

Mitigation Strategies

• Disposal of the Slovenian entity to a private consortium in Slovenia for nominal consideration.
• Focus on the Graft Bio division.
• Minimise costs and overheads to ensure that the Group remains solvent.
• £200,000 loan facility to support the Group as they prepare a prospectus which will in turn facilitate a larger fundraise.

Supply Chain Management

Climate-Related Risks & Opportunities