Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainability
• Climate-Related Disclosures
• Risk Management
• Financial Reporting
• Audit Functions

Governance Achievements

• Established an Audit & Risk Committee with a charter outlining responsibilities for sustainability and climate-related disclosures.

Climate Goals & Targets

Environmental Challenges

• Climate-related risks (physical and transitional)
• Meeting Aotearoa New Zealand Climate Standards (Climate Reporting Standards)

Mitigation Strategies

• Established a risk management framework to identify, treat, monitor, and report climate-related risks.
• Regular review of climate-related policies, strategies, and targets aligned with the Sustainability Policy.
• Monitoring progress against goals and targets for addressing climate-related issues.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Aotearoa New Zealand Climate Standards (Climate Reporting Standards)

Environmental Metrics

ESG Focus Areas

• Social Impact
• Environmental Impact
• Governance Practices

Environmental Achievements

• First greenhouse gas emission inventory completed
• Toitū Envirocare certified Pacific Edge as a member of its carbonreduce program
• Key projects underway, aimed at reducing supply chain footprint and reducing use of chemicals and single-use plastics

Social Achievements

• Grew commercial test volumes by 2% to reach 27,347 tests globally, broadening patient access to non-invasive alternatives
• Published Clinical Utility evidence for Triage from our STRATA study in The Journal of Urology
• Presented STRATA in a session at the AUA conference in May 2024 focused on paradigm shifting technology developments
• Strong engagement from our people - 79.6% of Pacific Edge people reported satisfaction in their roles - >80% of Pacific Edge people reported a clear understanding of the company’s vision and purpose
• No lost time to injuries

Governance Achievements

• FMEA risk management framework embedded across the business with routine reporting
• Review in progress of our Tax Governance framework to cover risks emerging from our growth trajectory
• Advanced our assessment and reporting of climate-related risks
• Further evolved our operational, quality and compliance framework
• Pacific Edge has successfully managed all external compliance audits in all areas of the business

Climate Goals & Targets

Environmental Challenges

• Uncertainty over continued Medicare coverage of our tests
• Reduction in commercial test volume in 2H 24
• Reduction of the sales team in Q2 24 to drive efficiency and preserve capital
• High concentration of revenue generated from the US Market
• High concentration of revenue derived from reimbursement by the US Centers for Medicare and Medicaid Services (CMS)

Mitigation Strategies

• Cash preservation program
• Restructuring of US commercial operations
• Improved US cash collections
• Sales strategy prioritises profitable sales territories, non-Medicare revenue streams and cash preservation over top line revenue growth
• Seeking adoption and reimbursement from new healthcare providers
• Adoption of alternate payment methods (such as patient pay) for tests performed
• Engaging with an alternative Medicare Administrative Contractor, new LCDs, expansion of geographic and product exposures, including distribution agreements
• Increased clinical evidence generation supporting the ongoing adoption of Cxbladder and clinical guidelines inclusion
• Strengthened balance sheet with strong cash reserves

Supply Chain Management

Supplier Audits: Full supplier diagnostic completed

Responsible Procurement

• Strengthen supplier engagement
• Improve the quality of our contracts
• Ensure the principles of sustainable procurement are considered when making purchasing decisions
• Major suppliers include conditions around modern slavery and human rights

Climate-Related Risks & Opportunities

Physical Risks

• Severe or extreme weather events
• Laboratories inoperable
• R&D biobank samples at risk
• Supplier(s) inoperable or disrupted
• Sample to lab – 11-day delivery not met

Transition Risks

• Legislated abolition of single-use plastics
• Non-compliance with investor ESG expectations and/or NZCS
• Geopolitical macro-economic uncertainty
• Increased costs
• Increased energy insecurity

Opportunities

• Legislation focused on reducing emissions within the health sector

Reporting Standards

Frameworks Used: Aotearoa New Zealand Climate Standards

Certifications: Toitū Envirocare carbonreduce

Sustainable Products & Innovation

• Detect+
• Monitor+