Climate Change Data

Environmental Metrics

ESG Focus Areas

• Antibiotic resistance
• Environmental responsibility
• Employee diversity and inclusion

Environmental Achievements

• Investigating solar cell installation for green electricity
• Implementing a rapid and intensive mold injection process
• Considering environmental criteria when selecting suppliers for production, transport, and travel
• Seeking to communicate digitally and continuously evaluate various environmentally friendly travel alternatives
• Providing company bicycles
• Providing financial support to the Clean Cooking Alliance

Social Achievements

• Focusing on eliminating discrimination and valuing diversity in hiring employees and consultants
• Aiming for high employee dedication, low staff turnover, and support for diversity without quotas
• Offering environmental training courses when relevant

Governance Achievements

• Compliance with the Swedish Corporate Governance Code
• Establishment of an Audit Committee and a Remuneration Committee
• Implementation of long-term incentive programs (LTIP 2018 and LTIP 2019)

Climate Goals & Targets

Environmental Challenges

• Higher-than-acceptable error rate in a third-party manufactured component delaying clinical studies
• Potential impact of the novel coronavirus on clinical trials and operations

Mitigation Strategies

• Collaborated with the supplier to identify and resolve the component issue
• Implementing measures to protect employees, assume social responsibility, and minimize negative impact on operations while monitoring the coronavirus situation

Supply Chain Management

Responsible Procurement

• Considering environmental criteria when selecting suppliers

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Global Compact

UN Sustainable Development Goals

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

Reducing antibiotic resistance contributes to better health outcomes, while environmental initiatives aim to reduce the company's carbon footprint.

Sustainable Products & Innovation

• ASTar, a fully automated antibiotic susceptibility testing system

Environmental Metrics

ESG Focus Areas

• Sustainability
• Antibiotic Resistance

Environmental Achievements

• Purchased green electricity
• Recycles via RagnSells (ISO 14001 certified)
• Purchases packaging from ISO 14001 certified manufacturers

Social Achievements

• Continued hiring at a rapid pace in 2021
• Average staff turnover of 4% in recent years (6.7% in 2021)
• Focus on diversity and eliminating discrimination
• Provides financial support to the Clean Cooking Alliance

Governance Achievements

• Initiated a project to expand the Company’s documentation and inspection of sub-suppliers
• Pursuing ISO 14001 certification

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting customer meetings and commercialization
• War in Ukraine causing uncertainty in costs and clinical studies
• Potential for delays in clinical studies
• Potential for intellectual property risks
• Market risks and competition
• Lack of market acceptance
• Risks associated with product approval (CE-IVD and FDA)

Mitigation Strategies

• Digital communication and internal training
• Monitoring supplier commitments
• Patent protection
• Continuous product development and commercialization efforts
• Health economics studies to demonstrate cost-effectiveness
• Working with notified body Tüv Süd for ISO 13485 and IVDR certification
• Addressing risks through risk management guidelines

Supply Chain Management

Responsible Procurement

• Considering environmental criteria when selecting suppliers
• Utilizing ISO 14001 certified carriers for transport

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Global Compact

Certifications: CE-IVD, ISO 13485

Third-party Assurance: Öhrlings PricewaterhouseCoopers AB

UN Sustainable Development Goals

• Goal 3 (Good health and well-being)
• Goal 9 (Industry, innovation and infrastructure)

Q-linea's work on rapid diagnostics contributes to better health outcomes and improved healthcare infrastructure.

Sustainable Products & Innovation

• ASTar (reducing unnecessary antibiotic use)

Environmental Metrics

Social Achievements

• 65 of 151 employees were women at year-end.

Climate Goals & Targets

Environmental Challenges

• Europe is a more immature market than the US in terms of rapid AST. Hospitals and laboratories are not as accustomed to rapid susceptibility determination.
• Delays in commercialisation if customers are less available and purchasing decisions take more time as a result of the pandemic.
• Shortage of components that are necessary for the ASTar instrument, which could also apply for consumables.
• Costs for fuel, energy, shipping, raw materials and certain insurance could increase further, which will impact the Company’s expense levels, although only to a limited extent.

Mitigation Strategies

• Thorough health economics studies, more scientific evidence, and comparative studies with other rapid AST systems will be needed for customers to see the differences in the systems.
• The Company placed orders for key components for ASTar in order to be able to manage deliveries while maintaining a safety stock for future deliveries.
• Q-linea is monitoring the ongoing situation very closely and will implement further measures as required and keep the markets informed if the assessment of the potential impact changes significantly.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: IFRS

Certifications: IVDR

Environmental Metrics

ESG Focus Areas

• Governance
• Environmental
• Social

Environmental Achievements

• Purchases green electricity from renewable energy sources.
• Recycles waste and residual products via Ragn-Sells (ISO 14001 certified).
• Purchases packaging from ISO 14001 certified manufacturers.

Social Achievements

• Three of seven Board members are women, including the Chairperson.
• Continuously reviews processes to ensure diversity in hiring.
• Initiated initiatives to make employee development more structured and active.
• Interacts with Uppsala University, accepting students for degree projects and providing lectures.

Governance Achievements

• Updated management responsibility policy, including greater responsibility for environmental policy.
• Updated supplier verifications and continues to refine processes.
• Has a Supplier Code of Conduct available on its website.

Climate Goals & Targets

Environmental Challenges

• Work to obtain ISO 14001 certification was delayed.
• Work on better documentation of sub-suppliers was delayed due to reorganizations by participating companies.

Mitigation Strategies

• Most managers underwent ISO 14001 training.
• Initiated a partnership with several companies in Uppsala for cooperation on supplier verifications.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• Updated supplier verifications
• Partnership with companies in Uppsala for supplier verifications

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Global Compact

Certifications: ISO 13485, IVDR

UN Sustainable Development Goals

• SDG 3 (Good health and well-being)
• SDG 9 (Industry, innovation and infrastructure)

ASTar's contribution to reducing antibiotic resistance aligns with SDG 3; the development and delivery of innovative diagnostic solutions aligns with SDG 9.

Sustainable Products & Innovation

• ASTar (reduces unnecessary antibiotic use)

Environmental Metrics

Social Achievements

• Expanded operations to Romania and the Middle East through new distribution agreements.
• Strengthened US commercial team to meet the demands of a fast-expanding pipeline.

Governance Achievements

• Announced changes in executive leadership team.

Climate Goals & Targets

Environmental Challenges

• The Company has yet to generate any positive cash flow.

Mitigation Strategies

• Continually pursuing other financing options, including discussions with potential partners for licensing and negotiations with investors.
• Implemented a cost savings program resulting in approximately SEK 50 million in annual savings.
• Shifted resources from development and clinical studies to sales and market support activities.
• Resolves to carry out a rights issue of approximately SEK 225 million and enters into an agreement for a bridge loan facility of approximately SEK 40 million.

Supply Chain Management

Climate-Related Risks & Opportunities