Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainability
• Carbon Emissions
• Board Diversity

Environmental Achievements

• Established an ESG Working Group in April 2021 with a remit to reduce the Group’s carbon emissions through initiatives such as minimising travel, paper use and printing and offset the Group’s 2021 carbon emissions.

Social Achievements

• Moved to larger, more modern and flexible head office space in the centre of Cardiff, improving the Group’s ability to operate effectively during the pandemic restrictions.
• Developed a Covid-19 module on BodyWorks Eve simulator, used to train frontline staff in London and New York.

Governance Achievements

• Appointed an external advisor to conduct a full review of the Board and its performance.
• Established a Nomination Committee to reconfigure the Board to comply with independence and seniority requirements.
• Goal to reduce Board size to seven Directors by 2022 while maintaining a majority of independent Non-executive Directors.
• Goal to increase Board diversity and relevant experience of Directors in ultrasound and AI sectors.
• Appointed Ingeborg Øie as a Non-executive Director.

Climate Goals & Targets

Environmental Challenges

• Covid-19 impact on sales revenue, especially in regions without direct sales organization.
• Restricted health budgets affecting purchases of high-value simulators.
• Competition from ultrasound manufacturers and AI start-ups.
• Unproven medical imaging AI software market.
• Dependence on resellers in certain geographical areas.
• Restricted hospital access and budgets due to the pandemic.

Mitigation Strategies

• Selling and marketing cost reductions to minimize Covid-19 impact.
• Successful placing raising a net £4.8m in May 2020.
• Developing AI software with clinical need and economic rationale.
• Building AI image database.
• Two-pronged marketing strategy: royalty-based licenses with manufacturers and direct sales of stand-alone devices.
• Developing a range of online training solutions to complement hands-on simulators.
• Increase in online marketing and development of new web demo rooms.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Introduced a new employee commuting scheme to incentivize low carbon travel
• Comprehensively reviewed packaging with sustainable sourcing and biodegradable materials
• Offset 100% of the Group’s direct 2022 CO2 equivalent greenhouse gas emissions through Climate Partner programs

Social Achievements

• Set up a local academic engagement group and established the IUG internships programme
• Set up a Cardiff schools STEM engagement group
• Implemented a flexible working policy for all Cardiff office-based employees
• Signed agreement to support the World Federation for Ultrasound in Medicine and Biology (‘WFUMB’)

Governance Achievements

• Refreshed the composition of Non-executive Directors on the Board
• Welcomed the appointment of Dr Christian Guttmann as Non-executive Director
• Conducted company-wide training on bribery and corruption, mental health and well-being, unconscious bias and health and safety at work

Climate Goals & Targets

Environmental Challenges

• Capital expenditure limitations on medical training budgets
• Clinical funding constraints
• Supply chain pressure
• Competition from existing ultrasound manufacturers and well-funded independent AI software vendors
• Recruiting high-calibre AI software engineers
• Continued Russian invasion and occupation of Ukraine
• Impact of inflation and interest rates on global healthcare spending

Mitigation Strategies

• Offering a variety of purchase price points, expanding product extensions and increasing e-learning options
• Competitively pricing clinical AI products to improve workflow, destress scanning, or enable more clinicians to confidently complete procedures
• Increasing key component stock holding and switching suppliers
• Two-pronged go-to-market strategy for AI-driven software (royalty-based and direct sales)
• Offering attractive, flexible salary packages and a flexible work environment
• Monitoring global events and economic conditions
• Passing on price increases to customers where possible

Supply Chain Management

Responsible Procurement

• All cardboard packaging now comes from sustainable sources
• All packing peanuts are fully biodegradable
• All pallets are locally sourced and mostly from recycled units
• Bubble wrap is from 30% recycled materials and can itself be recycled

Climate-Related Risks & Opportunities

UN Sustainable Development Goals

• Goal 3: Good Health and Well-being
• Goal 10: Reduced Inequalities
• Goal 13: Climate Action

At a product level we believe we have an impact through our classroom to clinic products helping to support, guide and speed up ultrasound which helps improve global health and well-being. At a Group level, albeit in a small way, we align to the following SDGs by: • Supporting the health and wellbeing of our employees • Providing opportunities to continually develop our employees • Commitment to ensure equal opportunities for all, irrespective of gender • Supporting our local community • Endeavouring to conduct our business in accordance with the best practices • Standards of quality and safety

Environmental Metrics

ESG Focus Areas

• Environment
• Social (People and Product)
• Governance

Environmental Achievements

• Reduced total Scope 1 to 3 carbon emissions by 7% in 2023
• Maintained carbon-neutral company status
• 1,056 tonnes of CO2 emissions in 2023 fully offset in Gold Standard VAR projects.

Social Achievements

• Launched a one-month internship program
• Attended local science festival and primary school assembly for STEM engagement
• Supported the World Federation for Ultrasound in Medicine and Biology (WFUMB) with training simulators
• 35% female representation across the Board, Management and Group.
• First year that our employees could take advantage of a ‘Charity Day’.

Governance Achievements

• Reduced the size of the Board from nine Directors to eight
• Conducted company-wide training on bribery and corruption, mental health and wellbeing, unconscious bias and health and safety at work.
• Zero reported incidents of bribery, corruption or fraud.

Climate Goals & Targets

Environmental Challenges

• Lower-than-expected sales in Western Europe and China for simulation products
• Reduction in NHS capital expenditure spending in the UK impacting simulation sales
• Competition from existing ultrasound manufacturers and well-funded independent AI software vendors in the Clinical AI market
• Supply chain pressures (though mitigated in the second half of 2023)
• Potential threats to global, regional and local economies (e.g., geopolitical instability, economic slowdown)

Mitigation Strategies

• Increased investment in the US sales team and improved web-based demo facilities
• Tight control on overheads to offset potential reduction in UK revenue
• Offering a variety of purchase price points, expanding product extensions, and increasing e-learning options for simulation products
• Competitively pricing Clinical AI products to improve workflow, reduce stress, or enable cost savings for hospitals
• Reduced stock levels and monitoring cash and stock against revenue forecasts
• Reviewing supplier costs and overheads and conducting a component savings review
• Two-pronged go-to-market strategy for Clinical AI (royalty-based license with GE Healthcare and direct sales through own network)

Supply Chain Management

Responsible Procurement

• Review of supplier costs and overheads
• Component savings review
• Dual-source supply for key components where possible
• Forward ordering and holding sufficient buffer inventory
• Business interruption insurance

Climate-Related Risks & Opportunities

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 9: Industry, Innovation and Infrastructure
• Goal 10: Reduced Inequalities
• Goal 13: Climate Action

Products improve global health and wellbeing by improving access to better maternal health and health of newborns, speeding up scanning and improving scanning skills in emergency medicine, critical care and intensive care, and enabling safer ultrasound guided needling procedures. Group-level alignment through employee wellbeing, equal opportunities, community support, ethical business practices, and quality and safety standards.