Climate Change Data

Environmental Metrics

ESG Focus Areas

• Resilient Operations
• Sustainable Product Innovation
• People and Communities
• Governance and Ethics
• Data Privacy and Cybersecurity
• Affordability and Accessibility
• Product Quality and Safety
• Climate Change
• Waste Management
• Product Stewardship
• Human Rights
• Compliance and Anti-Corruption
• Customer Centricity
• Inclusion and Diversity
• Talent Management and Retention
• Workplace Health and Safety
• Policy and Advocacy
• Community Engagement

Environmental Achievements

• 135+ metric tons of Pods diverted from landfill through product takeback programs
• Approximately 800,000 kilowatt hours of renewable energy generated through on-site solar panels
• Scope 1 GHG emissions decreased by approximately 19% compared to 2020
• Exceeded goal to ship 90% of inbound freight by ocean transport

Social Achievements

• 400+ new employees on-boarded
• 6,000+ hours of employee training during Quality and Compliance Week
• 7 Employee Resource Groups with over 500 participating employees
• 2,400+ hours of mentoring through a mentoring pilot program for Employee Resource Groups
• 60% gender and ethnic diversity on the Board of Directors
• Completed full international commercial launch of Omnipod DASH in Canada
• Increased availability and accessibility by entering markets in Turkey and Australia
• Opened new regional office in Dubai to headquarter Middle East operations
• 97% of Omnipod users would recommend the product to a friend

Governance Achievements

• Established new Supplier Code of Conduct
• Expanded Privacy Office to meet growing needs and comply with global data privacy laws
• Implemented a new privacy management platform
• Conducted a cybersecurity scenario test to evaluate response to external attacks
• 100% of employees in North America completed training and certification to the Code of Business Conduct and Ethics
• Established an Internal Audit function and initiated an internal audit of FCPA practices

Climate Goals & Targets

Environmental Challenges

• Disruptions in global supply chains due to the COVID-19 pandemic
• Increasing presence and sophistication of online security threats
• Waste generation in the medical device industry due to the disposable nature of many products
• Climate change and its potential impacts on business operations

Mitigation Strategies

• Strengthened supply chain reliability through dual and local sourcing
• Integrated cybersecurity and data privacy into product design and operations
• Implemented product takeback programs to divert waste from landfills
• Developed a roadmap for TCFD-aligned reporting on climate-related risks and opportunities
• Improved energy efficiency in facilities and increased use of renewable energy
• Implemented a business continuity program to address business disruptions

Supply Chain Management

Supplier Audits: Systematic quality audits every one to two years for Class A suppliers and every two to three years for Class B suppliers

Responsible Procurement

• Supplier Code of Conduct based on the RBA Code of Conduct
• Dual and in-region sourcing
• Cross-qualified sourcing
• Inventory holding

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Increased use of renewable energy
• Improved energy efficiency

Reporting Standards

Frameworks Used: GRI Standards, SASB Medical Equipment and Supplies Standard, TCFD

Certifications: ISO 13485, ISO 27001 (Omnipod DASH and Omnipod 5), DTSec Cybersecurity Standard for Connected Diabetes Device Security (Omnipod DASH)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Omnipod 5 (features improved security and reduced device count)

Awards & Recognition

• MSCI ESG rating upgraded to AA
• Named to 2021 MedTech’s Big 100
• Named to Drucker Institute’s Best Managed Companies of 2021
• Ranked #16 on Top 100 Women-Led Businesses in Massachusetts 2021
• Ranked #13 on Boston Business Journal 2021 Middle Market List
• Gold at the PM360 Trailblazer Awards
• Association of Diabetes Care and Education Specialists Bronze Award
• Top 10 Wearable Medical Devices Solution 2021 by MD Tech Review
• Ranked as one of UK’s Best Workplaces 2021
• Ranked as one of UK’s Best Workplaces for Women 2021
• Recognized as a Top Workplace for Salt Lake City and San Diego offices
• Top Workplace Cultural Excellence Award for Remote Work
• Best Equity Effectiveness Plan by the Global Equity Organization
• Above and Beyond Award by Employer Support of the Guard and Reserve

Environmental Metrics

ESG Focus Areas

• Resilient Operations
• Sustainable Product Innovation
• People and Communities

Environmental Achievements

• 937 megawatt hours (MWh) of renewable energy generated through on-site solar panels (almost 20% increase over 2021)
• 77% estimated reduction in greenhouse gas (GHG) emissions from Omnipod 5 starter kit packaging redesign (to be launched in 2023)
• ~6 million Pods responsibly disposed of through product takeback programs
• 45% of waste diverted from landfill and incineration (increased from 32% in 2021)

Social Achievements

• Increased representation of U.S. employees who identify as ethnically diverse from 33% in 2021 to 37% in 2022
• Formed eighth Employee Resource Group (ERG), the Asian and Pacific Islander ERG, in 2022
• Created a diversity and inclusion activation in the video game Animal Crossing™: New Horizons
• 27 hours of training per employee, including contractors, on average

Governance Achievements

• 67% gender, racial, and/or ethnic diversity on the Board of Directors
• 96% of top-spend suppliers and 100% of in-scope employees completed Supplier Code of Conduct training
• Revised Code of Business Conduct and Ethics to incorporate a more global approach

Climate Goals & Targets

Environmental Challenges

• Increased Scope 2 emissions due to expanded production capacity, employees returning to in-office work, and installation of a heated sidewalk
• Increased Scope 1 emissions due to the addition of company cars
• Falling short of the 90% ocean freight target due to air freight use for faster Omnipod 5 delivery
• Increased waste generation due to expanding operations and increased production volumes

Mitigation Strategies

• Altered building occupancy setpoints to save energy and costs
• Continuing to pursue the 90% ocean transport goal in 2023
• Optimizing shipments by shipping full pallets
• Shortening the supply chain by sourcing components locally where possible
• Implementing process improvement plans to increase waste diversion rate
• Expanding component reclaim process for defective parts

Supply Chain Management

Supplier Audits: 21% of in-scope, high-risk supplier facilities received RBA VAP audit reports

Responsible Procurement

• Supplier Code of Conduct (based on RBA Code of Conduct)
• Supplier Code of Conduct training for employees and suppliers
• RBA VAP audit reports review
• Conflict Minerals Policy

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather events
• Chronic changing weather patterns impacting facilities and supply chain

Transition Risks

• Climate-related regulations
• Reputational risk related to business decisions

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI 2021 Standards, SASB Medical Equipment and Supplies Standard, TCFD recommendations

Certifications: ISO 13485 (manufacturing facilities), ISO/IEC 27701:2019 (data privacy), ISO 27001 (information security)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Redesigned Omnipod 5 starter kit packaging
• Efforts to optimize Pod design to reduce plastic waste

Awards & Recognition

• 2022 Wearable Technologies Honoree (CES Innovation Awards)
• Newsweek's America's Most Responsible Companies
• Top Workplace USA 2022
• Fierce Pharma’s Public Relations Campaign Award

Environmental Metrics

ESG Focus Areas

• Customer Centricity
• Customer Safety
• Resilient Operations
• Sustainable Product Innovation
• People and Communities

Environmental Achievements

• Completed projects that will eliminate ~260,000 pounds of plastic and ~46,000 pounds of silicone waste annually from product manufacturing.
• Launched redesigned U.S. Omnipod 5 starter kit packaging, which has a 77% reduced carbon footprint vs. the previous design.
• Generated 758 MWh of renewable energy from solar installation at our Acton, Massachusetts, facility.
• Increased renewable energy generation potential by 802 kW via the completion of a second solar installation at our Acton, Massachusetts, headquarters.
• Increased waste diversion rate from landfill/ incineration by 8% vs. 2022.

Social Achievements

• Launched Omnipod 5 in the U.K. and Germany to help more people with diabetes.
• Expanded the U.S. Financial Assistance Program to reach more customers.
• Vast majority of Omnipod 5 and Omnipod DASH users have a monthly copay of $50 or less.
• Set goals to include underrepresented racial and ethnic populations in U.S. clinical trials for people with type 2 diabetes.

Governance Achievements

• Published our inaugural Human Rights Statement outlining a commitment to respecting human rights within our organization and value chain.
• Facilitated three comprehensive training sessions for global employees and suppliers, focused on the Responsible Business Alliance (RBA) Code of Conduct and forced labor risk identification and mitigation.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions
• Microplastic pollution
• Climate change impacts on facilities and supply chain
• Climate-related regulations
• Maintaining product availability and supply chain resiliency for a growing customer base.

Mitigation Strategies

• Diversifying global operations and establishing in-house manufacturing capabilities.
• Optimizing shipments to minimize trips and maximize product availability.
• Expanding solar generation capacity.
• Completing an energy efficiency study to identify energy and cost savings opportunities.
• Developing a reporting and target-setting roadmap to ensure alignment with existing and emerging climate-related regulations and disclosure expectations.
• Developing an ESG addendum for inclusion in the contracts of all new Malaysia-based suppliers.
• Implementing a dual local sourcing strategy and cross-qualifying suppliers to mitigate the risk of impact from downtime.
• Holding inventory in-house and at the supplier to ensure continuity of supply and reduced risk of disruption.

Supply Chain Management

Supplier Audits: 22% of in-scope, high-risk supplier facilities audited via RBA VAP

Responsible Procurement

• RBA Code of Conduct
• ESG addendum for Malaysia-based suppliers
• Supplier quality audits
• Quality agreements
• Supplier training

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather events
• Chronic changing weather patterns impacting material access, production, and shipping

Transition Risks

• Climate-related regulations
• Reputational risk from failure to address climate change

Reporting Standards

Frameworks Used: GRI 2021 Standards, SASB Medical Equipment and Supplies Standard, TCFD recommendations

Certifications: ISO 27001, ISO 27701, ISO 13485

Sustainable Products & Innovation

• Redesigned Omnipod 5 starter kit packaging
• Omnipod GO

Awards & Recognition

• 2024 Newsweek “America’s Most Responsible Companies”
• 2024 Newsweek “America’s Greenest Companies”
• PRIME ISS ESG Corporate rating
• MSCI ESG rating of AA