Climate Change Data

Environmental Metrics

ESG Focus Areas

• A sustainable offering throughout the value chain
• A responsible company
• An attractive workplace

Environmental Achievements

• Reduced carbon emissions from production remained at the same level as in 2019 despite a 3.9% increase in net sales.
• Hazardous waste reduced in 2020.
• Recycling increased during the year.

Social Achievements

• Reduced the number of work-related injuries among healthcare professionals by an average of 78% at over 800 healthcare facilities worldwide.
• Trained over 4,000 people in the care and rehabilitation of Covid-19 patients via digital webinars.
• Supported several organizations in various markets (Pratham in India, Dementia Australia, Volunteer Time Off in Canada, Förenade Care in Sweden).

Governance Achievements

• Established a new sustainability forum in 2021.
• Implemented a digital training program in fraud and irregularities for Group Finance employees.
• Implemented an audit process evaluating distributors and commercial intermediaries from an ethical business perspective.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to the pandemic.
• Maintaining sustainability goals during economic growth.

Mitigation Strategies

• Supported suppliers in managing issues raised by local authorities.
• Developed a customized Code of Conduct for suppliers and business partners.
• Established business ethics ambassadors to navigate ethical challenges.

Supply Chain Management

Supplier Audits: 24 assessments performed in 2020; 82% of total purchases from suppliers who signed the Code of Conduct.

Responsible Procurement

• Customized Code of Conduct for suppliers and business partners.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI (as of 2022)

Certifications: ISO 14001 (all production units)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 3: Good Health and Well-being
• Goal 4: Quality Education
• Goal 5: Gender Equality
• Goal 8: Decent Work and Economic Growth
• Goal 12: Responsible Consumption and Production
• Goal 13: Climate Action
• Goal 16: Peace, Justice and Strong Institutions

Arjo's activities align with these SDGs through initiatives related to healthcare, education, gender equality, employee well-being, resource efficiency, climate action, and ethical business practices.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate change
• Diversity, Equity, and Inclusion
• Business ethics
• Occupational health and safety
• Circular economy

Environmental Achievements

• Reduced carbon emissions by 18% since 2019.
• Two production facilities transitioned to 100% renewable electricity.
• Reduced plastic use by 4,320 kg per year in VTE garments.
• Reduced waste by 4-5% in Suzhou facility through reusable boxes.
• Reduced waste by 4,500 kg per year in Santa Domingo facility.

Social Achievements

• Launched Provizio® SEM Scanner, reducing pressure injuries.
• Improved employee engagement score from 7.5 to 7.9.
• Implemented a new directive on diversity, equity, and inclusion.
• Reduced work-related injuries at over 800 healthcare facilities.
• Launched outcome-based programs for pressure injury prevention.

Governance Achievements

• Established a sustainability forum.
• 10% of Management Team's short-term incentive linked to sustainability targets (starting 2022).
• Implemented Arjo’s Directive for Occupational Health and Safety.
• Implemented Arjo’s Directive for Diversity, Equity and Inclusion.
• 95% of suppliers signed Arjo’s Code of Conduct.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to the pandemic.
• Restricted access to hospitals for service and maintenance.
• Global supply chain challenges impacting component availability and transportation.

Mitigation Strategies

• Developed new work processes for service and maintenance (outdoor, confined spaces, remote).
• Increased transparency and open communication with customers.
• Adjusted commercial terms to mitigate negative effects of supply chain disruptions.
• Developed virtual training courses and service solutions.

Supply Chain Management

Supplier Audits: 31 audits in 2021; 95% of suppliers signed Code of Conduct.

Responsible Procurement

• Code of Conduct for suppliers and business partners.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI (transitioning to GRI guidelines in 2022)

Certifications: ISO 9001, ISO 13485, EU Medical Device Directive (MDD), EU Medical Device Regulations (MDR), Medical Device Single Audit Program (MDSAP), UK Conformity Assessed (UKCA), ISO 14001 (at some production facilities)

Third-party Assurance: Öhrlings PricewaterhouseCoopers AB

UN Sustainable Development Goals

• Goal 3: Good health and well-being
• Goal 8: Decent work and economic growth
• Goal 12: Responsible consumption and production
• Goal 13: Climate action

Initiatives aligned with SDGs are described in the sustainability report.

Sustainable Products & Innovation

• Provizio® SEM Scanner
• WoundExpress™
• Velaris mattress system
• Improved VTE prevention products

Awards & Recognition

• Vizient Innovative Technology Contract for Provizio® SEM Scanner

Environmental Metrics

ESG Focus Areas

• Product quality and safety
• Compliance, ethics and anti-corruption
• Occupational health and safety
• Employment and fair treatment
• Carbon emissions/energy-efficiency enhancement
• Sustainable product development
• Purchasing

Environmental Achievements

• Reduced the Group’s carbon emissions by 18 percent since the base year 2019.
• All five of Arjo’s production facilities used renewable electricity in 2022.
• Reduced electricity consumption by 25 percent at the Suzhou, China warehouse.
• Reused 80 percent of textile waste at the Suzhou, China facility.
• Completely eliminated PVC waste at the Poznan, Poland facility.
• Arjo ReNu is helping healthcare providers in the US to reuse more than 200,000 single-use medical devices every month.

Social Achievements

• Average engagement score in the 2022 global People Survey increased from 7.9 (2021) to 8.0 out of 10.
• 1,000 days without any injuries at Arjo’s US-based distribution centers in Roselle, Miami and Oakland.
• Supported Ukrainian refugees by providing housing, employment, and medical beds.
• Continued cooperation with Pratham to improve the education system in India.

Governance Achievements

• Updated anti-corruption directive and guidelines.
• Conducted risk assessments to identify and manage corruption risks.
• Provided targeted training in business ethics and compliance to all active purchasing organization employees.
• Introduced local policies for compliance and anti-corruption in North America.
• Added a secure telephone hotline to Arjo’s global whistleblowing service.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions
• Reducing carbon emissions throughout the value chain
• Increasing circularity by reducing resource consumption
• Managing risks related to corruption and compliance
• Meeting intensified demands in the US and Canada related to regulatory requirements and customer expectations.

Mitigation Strategies

• Closer partnerships with suppliers to enhance the sustainability profile of Arjo’s products and solutions.
• Implementing a new sustainability reporting system (Position Green) to upgrade Arjo’s plan to reduce carbon emissions.
• Mapping the organization’s total carbon emissions to set targets for Scope 1, 2, and 3.
• Updating anti-corruption directives and procedures.
• Conducting risk assessments and implementing follow-up measures.
• Providing targeted training in business ethics and compliance.
• Introducing local policies for compliance and anti-corruption in North America.
• Adding a secure telephone hotline to Arjo’s global whistleblowing service.
• Improved filling ratio in packaging, optimizing and consolidating transportation flows, and engaging in discussions with carriers regarding sustainability.

Supply Chain Management

Supplier Audits: 91% of suppliers of direct material signed Arjo’s Code of Conduct in 2022.

Responsible Procurement

• Arjo’s separate Code of Conduct for suppliers and other business partners is a standard part of purchasing agreements.
• Targeted training in business ethics and compliance for purchasing organization employees.
• Sustainability risks mapped among suppliers.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14001, ISO 13485, ISO 9001, MDSAP, CE (MDD), CE (EU MDR), UKCA (UK MDR)

UN Sustainable Development Goals

• Goal 3: Good health and well-being
• Goal 4: Quality education
• Goal 5: Gender equality
• Goal 8: Decent work and economic growth
• Goal 12: Responsible consumption and production
• Goal 13: Climate action
• Goal 16: Peace, justice and strong institutions

Arjo's activities contribute to these SDGs through its products and solutions, employee initiatives, and community engagement.

Sustainable Products & Innovation

• Arjo ReNu

Environmental Metrics

ESG Focus Areas

• Environment
• Social Responsibility
• Governance

Environmental Achievements

• Reduced greenhouse gas emissions from own operations (scope 1 & 2) by 11% since base year 2021
• 3,400,000 single-use medical consumables reprocessed through Arjo ReNu
• Arjo ReNu reduces climate impact of healthcare by 54-64% compared with single use (VTE garments)

Social Achievements

• Improved ESG risk rating from Sustainalytics, top ten in medical technology sector
• 91% share of purchases of direct materials from suppliers who have signed Arjo’s Business Partner Code of Conduct
• Arjo Canada and Australia recognized as a Great Place to Work® in 2023

Governance Achievements

• AA ranking according to Morgan Stanley Capital International (MSCI)
• Sustainability targets included in incentive programs for managers
• Arjo’s climate goals approved by Science Based Targets initiative

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions
• Managing sustainability risks throughout the value chain

Mitigation Strategies

• Internal program to develop and communicate work with sustainability-related risks
• Continuous development of collaboration with suppliers
• Program for evaluating suppliers with a focus on climate, environment, social responsibility, and health & safety

Supply Chain Management

Supplier Audits: Pilot audits conducted in 2023

Responsible Procurement

• Code of Conduct for suppliers and business partners

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards 2021

Certifications: ISO 9001, ISO 13485, MDSAP, CE (MDD & MDR), UKCA (UK MDR), ISO 14001

Third-party Assurance: Öhrlings PricewaterhouseCoopers AB (limited assurance for revolving credit facility)

UN Sustainable Development Goals

• Goal 3 (Good Health and Well-being), Goal 7 (Affordable and Clean Energy), Goal 9 (Industry, Innovation and Infrastructure), Goal 12 (Responsible Consumption and Production), Goal 13 (Climate Action), Goal 17 (Partnerships for the Goals)

Arjo's initiatives contribute to these goals through sustainable product development, reduced emissions, responsible supply chain management, and stakeholder engagement.

Sustainable Products & Innovation

• Arjo ReNu

Awards & Recognition

• AA ranking (MSCI), improved ESG rating (Sustainalytics), Great Place to Work® (Canada & Australia)