Climate Change Data

Observe Medical ASA

Climate Impact & Sustainability Data (2019, 2020, 2021, 2022, 2023)

Reporting Period: 2019

Environmental Metrics

Total Carbon Emissions:11.5 tCO2e (direct from company vehicles)
Scope 1 Emissions:Not disclosed
Scope 2 Emissions:Not disclosed
Scope 3 Emissions:Not disclosed
Renewable Energy Share:Not disclosed
Total Energy Consumption:Not disclosed
Water Consumption:Not disclosed
Waste Generated:Not disclosed
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Hospital Acquired Infections
  • Corporate Governance
  • Employee Well-being
  • Environmental Impact (Transportation)

Environmental Achievements

  • Reduced direct CO2 emissions from company vehicles to 11.5 metric tons of CO2.

Social Achievements

  • Employee absenteeism rate for illness was 5.5% with no serious work-related injuries.
  • Two out of four board members are women.

Governance Achievements

  • Implemented a corporate governance regime based on the Norwegian Corporate Governance Code.
  • Quality Management System re-certified by Intertek according to SS-EN ISO 13485:2016.

Climate Goals & Targets

Long-term Goals:
  • Establish Sippi® as a global niche leader.
Medium-term Goals:
  • Not disclosed
Short-term Goals:
  • Continue Sippi® launch rollout in Nordics and rest of Europe, preparing for US market entry.

Environmental Challenges

  • The COVID-19 situation with national travel restrictions and a fully occupied healthcare system constrained the launch efforts for Sippi®, slowing down or stalling some sales projects.
  • The company is focused on one product (Sippi®), making it vulnerable to competition and market risks.
  • Potential for malfunction of the technology in complex ICU environments.
  • Dependence on distributors for foreign markets.
Mitigation Strategies
  • Observe Medical operates at full capacity and is working according to plan, focusing on the international launch and sales of Sippi®.
  • Investments in continuous product development and an efficient commercialization strategy.
  • Comprehensive measures to protect intellectual property rights.
  • Monitoring its value chain closely and maintaining an active profile towards the equity market.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Not disclosed

Climate-Related Risks & Opportunities

Physical Risks
  • Not disclosed
Transition Risks
  • Not disclosed
Opportunities
  • Not disclosed

Reporting Standards

Frameworks Used: Norwegian Corporate Governance Code

Certifications: ISO 13485:2016

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Sippi® with SippCoat® technology to prevent urinary tract infections.

Awards & Recognition

  • Not disclosed

Reporting Period: 2020

Environmental Metrics

Total Carbon Emissions:5 metric tonnes of CO2 (from company vehicles)

ESG Focus Areas

  • Working environment
  • Business ethics, including supply chain management
  • Environmental impact
  • Product safety

Environmental Achievements

  • Introduced a new company car policy which encourages employees to use an electrical or hybrid car

Social Achievements

  • Entered into a bargaining agreement with IKEM, providing employees with good pension and insurance schemes

Governance Achievements

  • Adopted and implemented a corporate governance regime based on the Norwegian Corporate Governance Code

Climate Goals & Targets

Short-term Goals:
  • Promote more females to senior positions
  • Establish and carry out regular employee surveys
  • Complete the Employee Handbook
  • Establish an external whistleblowing channel
  • Start climate accounting on scope 1, 2 and 3
  • Zero fossil company cars
  • Transition to Medical Device Regulation (MDR)
  • Establish a Group wide environmental policy
  • Establish a Group wide CSR Policy / Code of Conduct
  • Establish a Group wide supplier Code of Conduct
  • Provide training on insider information regulations to employees
  • Establish a Quality Management System (QMS) with relevant policies/manuals for the entire Group

Environmental Challenges

  • COVID-19 situation impacting launch efforts for Sippi®, slowing down sales projects
  • Increased competition may lead to reduced pricing potential
  • Risk of malfunction of Sippi® technology in complex ICU environments
  • Dependence on distributors' ability to perform in foreign markets
  • Risk in upscaling production
Mitigation Strategies
  • Focusing on accelerating clinical use in the Nordics and selected European markets
  • Continuous product development and efficient commercialization strategy
  • Comprehensive measures to protect intellectual property rights
  • Active profile towards the equity market with a transparent investor relations strategy
  • Initiatives to increase revenues from acquired portfolio, reduce spending, and improve operational efficiency

Supply Chain Management

Responsible Procurement
  • All suppliers are screened using criteria related to business ethics prior to entering new contracts

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Oslo Børs’ guidelines for sustainability reporting (Euronext guidelines)

Certifications: ISO 13485:2016

Sustainable Products & Innovation

  • Sippi® (digital urine meter)
  • SippCoat® (biofilm prevention technology)

Reporting Period: 2021

Environmental Metrics

ESG Focus Areas

  • Working environment
  • Business ethics, including supply chain management
  • Environmental impact
  • Product safety

Social Achievements

  • Decreased employee turnover rate from 27% in 2020 to 13% in 2021.
  • Increased share of female employees to 57% in 2021 (from 55% in 2020).

Governance Achievements

  • Adopted a corporate governance regime based on the Norwegian Corporate Governance Code and Market Abuse Regulation (MAR).

Climate Goals & Targets

Short-term Goals:
  • Seek gender balance in senior positions
  • Establish and carry out regular employee surveys
  • Complete the Employee Handbook
  • Establish an external whistleblowing channel
  • Establish a Group wide CSR Policy / Code of Conduct
  • Establish a Group wide supplier Code of Conduct
  • Provide further training on insider information regulations to employees
  • Observe Medical will further work to understand how to reduce our environmental footprints, direct and indirect
  • Establish a Group Environmental Policy with guidelines that outlines how to improve environmental performance
  • Complete transition to Medical Device Regulation (MDR)
  • Establish a joint Quality Management System (QMS) with relevant policies/manuals for the entire Group

Environmental Challenges

  • COVID-19 pandemic significantly delayed the planned roll-out of Sippi®.
  • Risk of malfunction of Sippi® technology in complex ICU environments.
  • Risk of competing product launches with better features or market penetration.
  • Risk of unfavorable outcomes in clinical studies impacting new claims for Sippi®.
  • Dependence on distributors' ability to perform in foreign markets.
  • Risks in upscaling production.
  • Supply chain disruptions due to the war in Ukraine and the COVID-19 pandemic.
  • Risk of failure to protect intellectual property rights.
Mitigation Strategies
  • Continuous product development and efficient commercialization strategy.
  • Close monitoring of the geopolitical situation and supply chains.
  • Comprehensive measures to protect intellectual property rights.
  • Company car policy allowing only electric or plug-in hybrid cars.
  • Active post-market surveillance process compliant with MDR and ISO 13485.

Supply Chain Management

Responsible Procurement
  • CSR policy and code of conduct for suppliers implemented for Observe Medical Nordic AB. Group-wide policies and code of conduct under development.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Oslo Børs’ guidelines for sustainability reporting (Euronext guidelines)

Certifications: ISO 13485:2016 (Observe Medical AB)

Sustainable Products & Innovation

  • Sippi® (automated digital urine meter)
  • SippCoat® (technology that hampers biofilm formation)

Reporting Period: 2022

Environmental Metrics

ESG Focus Areas

  • Working environment
  • Business ethics, including supply chain management
  • Environmental impact
  • Product safety

Environmental Achievements

  • Reduced travel activity by using video conferencing tools
  • Company car policy allowing only electric or plug-in hybrid cars

Social Achievements

  • Zero reported incidents of discrimination
  • Implemented a digital group Quality Management System

Governance Achievements

  • Established routines and Code of Conduct that covers due diligences on suppliers
  • Implemented a digital group Quality Management System

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Not disclosed
Short-term Goals:
  • Seek gender balance in senior positions
  • Complete Employee Handbooks for the Group
  • Establish an external whistleblowing channel
  • Establish a Group wide CSR Policy / Code of Conduct
  • Establish a Group wide supplier Code of Conduct
  • Provide further training on insider information regulations to new employees
  • Further work to understand how to reduce environmental footprints

Environmental Challenges

  • Loss of Covid-19 related revenues
  • Increased operating expenses due to Biim Ultrasound consolidation
  • Supply chain disruptions due to the war in Ukraine and post-Covid-19 effects
  • Risk of competing product launches
  • Risk of malfunction of Sippi® technology
  • Dependence on distributors' ability to perform
  • Risk of not succeeding in acquiring the Unometer™ portfolio
  • Liquidity risk due to insufficient working capital
Mitigation Strategies
  • Completed a Rights Issue of NOK 180 million
  • Entered into loan agreements with shareholders
  • Actively seeking synergistic opportunities (acquisitions)
  • Securing key hires
  • Investing in sales channels and resources
  • Exploring potential finance providers and investors
  • Developing cost-efficient manufacturing alternatives

Supply Chain Management

Responsible Procurement
  • CSR policy and code of conduct for suppliers implemented for Observe Medical Nordic AB
  • All suppliers are screened using criteria related to business ethics

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Oslo Børs’ guidelines for sustainability reporting (Euronext guidelines)

Certifications: ISO 13485:2016

Reporting Period: 2023

Environmental Metrics

ESG Focus Areas

  • Working environment
  • Business ethics, including supply chain management
  • Environmental impact
  • Product safety

Social Achievements

  • Implemented a digital group Quality Management System (QMS) that covers development, manufacturing and sales of medical devices in all legal entities and sites within the group

Governance Achievements

  • Adopted a corporate governance regime based on, and in all material aspects in compliance with the Norwegian Corporate Governance Code

Climate Goals & Targets

Short-term Goals:
  • Seek gender balance in senior positions
  • Complete Employee Handbooks for the Group
  • Establish an external whistleblowing channel
  • Establish a Group wide CSR Policy / Code of Conduct
  • Establish a Group wide supplier Code of Conduct
  • Provide further training on insider information regulations to new employees
  • Observe Medical will further work to understand how to reduce our environmental footprints, direct and indirect
  • Establish a Group Environmental Policy with guidelines that outlines how to improve environmental performance

Environmental Challenges

  • Increased competition may lead to reduced pricing potential for Observe Medical’s products
  • Main operational risk short term for Biim relates to the continued roll-out and degree of adoption of the product in Fresenius Medical Care’s dialysis clinics in the US
  • Geo-political factors disrupting global supply chains
  • Liquidity challenges
Mitigation Strategies
  • Initiated short-term cost-saving measures, including temporary layoff of staff
  • Engaged in constructive dialogues with its creditors to manage short-term liquidity
  • Completed a Rights issue to cover working capital needs
  • Entered into an agreement on the purchase of receivables with Avida to reduce credit risk and improve working capital

Supply Chain Management

Responsible Procurement
  • CSR policy and code of conduct for suppliers implemented for Observe Medical Nordic AB
  • All suppliers are screened using criteria related to business ethics prior to entering new contracts

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Oslo Børs’ guidelines for sustainability reporting (Euronext guidelines)

Certifications: ISO 13485:2016

Sustainable Products & Innovation

  • Sippi® digital urine meter