Climate Change Data

Environmental Metrics

ESG Focus Areas

• Human rights
• Labor rights
• Environment
• Anti-corruption
• Diversity & Inclusion

Environmental Achievements

• Reduced paper consumption through double-sided printing in 2019 compared to 2018.

Social Achievements

• Established a Code of Conduct covering human rights and labor rights in 2017.
• Implemented the Code of Conduct into supplier contracts.
• Provided human rights training for all employees, including new hires.
• Maintained a safe and healthy work environment with zero work-related injuries and zero employee-related union cases in 2019.
• Endeavored to achieve an equal gender breakdown and diversity of educational backgrounds, nationalities, and cultures in its staff.
• Set a target for at least 25% women in management by 2022.

Governance Achievements

• Added two new US Board members in 2019, bringing US experience and competencies to the Board.
• Completed a private placement cash issue, raising DKK 36.7 million in June 2019.
• Established three warrant programs in 2019 to incentivize and retain management and employees.
• Complied with all but three of the Committee for Corporate Governance recommendations.

Climate Goals & Targets

Environmental Challenges

• FDA concerns about potential bias in the dataset for the pediatric NGAL Test application.
• Ceased collaboration with an antibody supplier, impacting antibody revenue.
• Increased costs related to building the US organization and clinical studies.
• Increased market volatility and negative reactions due to the COVID-19 outbreak, delaying financing.

Mitigation Strategies

• Supplemented the pediatric NGAL Test application with additional data to address FDA concerns.
• Narrowed strategic focus to its own antibodies and biomarkers.
• Strengthened the US organization with experienced personnel in medical, clinical, and regulatory affairs.
• Pursued additional financing to support operations.

Supply Chain Management

Responsible Procurement

• Initiated a process of implementing the Code of Conduct into supplier contracts to ensure that suppliers respect human rights and comply with labor rights.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Global Compact

Environmental Metrics

ESG Focus Areas

• Human rights
• Labor rights
• Environment
• Anti-corruption
• Diversity

Environmental Achievements

• Continued initiatives to minimize environmental impact, including reduced paper consumption, sustainable cleaning equipment, and enhanced waste recycling.
• Zero environmental incidents reported in 2023.

Social Achievements

• Implemented a whistleblower scheme, providing a confidential avenue to report human rights violations or unethical behavior.
• Zero incidents of human rights violations reported in 2023.
• Zero employee-related cases with unions and zero work-related injuries in 2023.
• Increased proportion of female employees to 61% and maintained 61% non-Danish employees.
• Adopted a Diversity Policy committed to equal opportunities for all employees.

Governance Achievements

• Implemented all but four recommendations from the Committee of Corporate Governance for companies listed on the Nasdaq Copenhagen Stock Exchange.
• Published a statutory report on Corporate Governance for 2023.
• Conducted an external self-evaluation of the Board's performance, with positive conclusions.
• Updated Remuneration Policy and prepared a Remuneration Report in accordance with the Danish Companies Act.
• Established a Code of Conduct and a whistleblower scheme.

Climate Goals & Targets

Environmental Challenges

• Market acceptance of products may be lengthy and difficult.
• Timing of future clinical trials depends on external factors.
• Failure to commercialize NGAL tests could adversely affect future revenues.
• Product benefits may not demonstrably drive market adoption.
• Public health events could impact business.
• Attracting and retaining qualified personnel in a competitive environment.
• Complex manufacturing processes.
• Dependence on sole-source suppliers for raw materials.
• Patent expirations leading to increased competition.
• Changes in regulations.
• Need for additional capital.
• Incurred net losses and may continue to do so.
• Obtaining Freedom to Operate in relevant markets.
• Competition from other companies.
• Performance of subcontractors.
• Cyber-attacks.
• Risks related to trade receivables and inventory.
• Changes in USD exchange rate and financing costs.
• Tax risks.
• Risks related to IT.

Mitigation Strategies

• Trained commercial and medical liaison personnel, HEOR and reimbursement dossiers to payers.
• Alignment with competent CRO and internal R&D talent.
• Key partner negotiations and commercial enablement, customer case stories, and peer-to-peer support.
• Recent FDA clearance of ProNephro AKI (NGAL).
• Constantly monitoring news and medical outlets.
• Offering meaningful work growth opportunities and using tools like LinkedIn.
• In-house qualified production leadership and personnel.
• Developing dual-source supply for critical raw materials.
• Creating new intellectual property and new product introductions.
• Regulatory intelligence and compliance execution.
• Financing strategy and plan.
• Multiyear financial strategy and plans.
• Freedom to Operate analysis.
• Creating new intellectual property and new product introductions.
• Ensuring alternative suppliers for critical subcontractors.
• Investing in development pipelines, communication with customers, and creating new intellectual property.
• MFA, device recognition, data recovery processes, phishing awareness, training programs, IT security through Company’s IT suppliers and cyber security insurance.
• Low expected credit losses and plans to expand key inventory suppliers.
• Natural hedge for USD expenses and potential for meaningful revenue growth.
• Use of tax experts.
• See Cyber-attacks above.

Supply Chain Management

Responsible Procurement

• Implementing the Code of Conduct into supplier contracts to ensure that suppliers respect human rights and comply with labor rights.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Global Compact

Third-party Assurance: Deloitte Statsautoriseret Revisionspartnerselskab