Climate Change Data

Environmental Metrics

ESG Focus Areas

• Product Innovation
• Product Quality and Compliance
• Employee Health and Safety
• Impact on the Environment
• Talent
• Engagement
• Diversity
• Access to Healthcare
• Board Role and Structure
• Compensation
• Risk Management
• Policies and Ethics

Environmental Achievements

• Reduced greenhouse gas emissions by 10% by 2021 (goal achieved early)
• Installed a rooftop photovoltaic system in Costa Rica, reducing electrical costs by more than 14% annually
• Implemented reusable bins, reducing waste by eliminating the need for about 2,000 boxes a year in Danbury, CT
• Implemented reusable shipping containers for molecular assays in San Diego, eliminating an estimated 10,000 non-recyclable polystyrene containers and 200,000 pounds of dry ice in one year
• Conserved 13.5 million gallons of water in San Diego since 2009, resulting in $70,000 cost savings

Social Achievements

• Increased the number of women on the leadership team from zero in 2015 to 21% in 2019
• 50% of U.S. sales leaders are women
• Improved employee engagement scores, with 60% of employees highly engaged in 2019
• 71% of employees had an engaged manager in 2019
• 69% of leadership roles were filled internally in 2019
• Launched new development programs for managers, with nearly 500 participants in 2019
• U.S. parental leave policy offering up to 16 weeks of job-protected leave
• Provided access to best-in-class cervical and breast cancer screening technologies for employees
• Provided philanthropic support to various organizations focusing on women's health and STEM education

Governance Achievements

• Board transformation with four new independent directors since 2015, increasing diversity of experience and expertise
• Women comprise 38% of the Board of Directors, including the lead independent director
• Implemented a year-round approach to shareholder engagement since 2015
• No statistically significant pay differences between men and women in the U.S. based on a 2018 study
• Completed pay equity audits in Sweden and voluntary analysis in the U.K.

Climate Goals & Targets

Environmental Challenges

• Maintaining stability of assays during shipping to sub-Saharan Africa
• Establishing key procurement agreements with PEPFAR and Unitaid for the Global Access Initiative

Mitigation Strategies

• Partnerships with Clinton Healthcare Access Initiative, MedAccess, DFID, Unitaid, PEPFAR, and ASLM to address challenges in the Global Access Initiative

Supply Chain Management

Responsible Procurement

• Developing a Supplier Environmental and Social Responsibility Code of Conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB, GRI, TCFD

Certifications: ISO 13485:2016 (multiple sites), ISO 14001/OHSAS 18001 (three manufacturing sites)

Sustainable Products & Innovation

• Reusable bins and shipping containers

Awards & Recognition

• NAM Sustainability Innovation Award (Costa Rica facility)
• NAM Operational Excellence Award (Danbury, CT facility)
• Shingo Institute’s Silver Medallion Award for Operational Excellence (Costa Rica facility)

Environmental Metrics

ESG Focus Areas

• Product Innovation
• Product Quality and Compliance
• Sustainable Supply Chain
• Impact on the Environment
• Talent
• Engagement
• Diversity
• Access to Healthcare
• Board Role and Structure
• Compensation
• Risk Management
• Policies and Ethics

Environmental Achievements

• Reduced greenhouse gas emissions by 10% by 2019 (ahead of 2021 goal)
• 14% of Costa Rica facility's energy needs supplied by solar panels

Social Achievements

• Reached world-class employee engagement (top 96th percentile)
• Increased women and ethnically diverse representation in Global Leadership Team to 29%
• Launched Project Health Equality, a multi-year, multimillion-dollar commitment to improve access to early detection products among minorities and lower-income women
• Donated $15 million to corporate charitable fund
• Established two scholarship programs

Governance Achievements

• Board transformation with increased independence and diversity
• Implemented year-round shareholder engagement
• Strengthened ethics and compliance programs
• No reported violations of antitrust or competition laws

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting business operations and elective procedures
• Social and racial inequality
• Shortage of swabs and transport media for COVID-19 testing
• Escalating demand for COVID-19 tests and Panther instruments

Mitigation Strategies

• Implemented reduced work weeks, temporary plant shutdowns, and furloughs
• Reduced executive compensation
• Preserved funding for retirement plans
• Provided extraordinary financial awards to frontline employees
• Developed alternative sourcing strategies for swabs and transport media
• Expanded manufacturing capacity for COVID-19 tests
• Refurbished and deployed out-of-use Panther instruments
• Developed a pooling protocol for COVID-19 testing

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• Supplier Quality Guidebook
• Non-disclosure agreements
• Supplier risk assessments (quality, supply continuity, information services data)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB, GRI, TCFD, UN Global Compact, UN Sustainable Development Goals

Certifications: ISO 13485:2016 (multiple sites), ISO 14001/ISO 45001 (three manufacturing sites)

UN Sustainable Development Goals

• 3
• 4
• 5
• 8
• 9
• 10
• 12
• 13

Environmental Metrics

ESG Focus Areas

• Championing Women's Health
• Community Engagement
• Environmental Sustainability
• Employee Well-being
• Good Governance

Environmental Achievements

• Reduced Costa Rica facility's carbon footprint by 25.5 tons of CO2 per year through solar panels, saving approximately $71,000 annually in electricity costs.
• Reduced paper use by approximately 500kg annually by removing inserts from Aptima® Multitest Swab Specimen Collection Kits.
• Redesigned insulated shipping containers with better insulation and less material to reduce carbon emissions and plastic use.
• Implemented new flow wrapper production lines for collection devices, significantly reducing material and energy use in manufacturing.

Social Achievements

• Received Gallup’s Exceptional Workplace Award for the second consecutive year.
• Launched and continued the Hologic Global Women’s Health Index in partnership with Gallup®, providing insights into women's health across 122 countries.
• Advanced Project Health Equality initiatives to reduce healthcare disparities for underserved women.
• Partnered with the Women’s Tennis Association (WTA) to raise awareness of preventive care and advance equality for women.

Governance Achievements

• Implemented a year-round approach to shareholder engagement.
• Maintained a high percentage of independent directors on the Board.
• Aligned executive compensation with company performance and shareholder value.
• Complied with applicable regulations and standards in clinical trials, supply chain management, and quality management.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to semiconductor shortages impacting capital sales in Breast Health business.
• Increased emissions as a percentage of sales in FY22 due to higher COVID revenue in 2021.
• Global challenges including macroeconomic uncertainties, war in Ukraine, and economic disruptions impacting customers and suppliers.

Mitigation Strategies

• Focusing on supply-side initiatives and incorporating future initiatives aligned with the Science Based Targets Initiative to achieve emissions reduction goals.
• Expanding solar panel capacity and implementing a battery system in Costa Rica to increase reliance on renewable energy.
• Implementing a risk management process to identify and mitigate supply chain risks, including evaluating supplier segmentation and business continuity plans.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct requiring compliance with environmental, labor, and ethical standards.
• Non-disclosure agreements to protect intellectual property.
• Supplier notification requirements for events impacting supply or quality.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Disruption of supply chains or commercial activity from longer-term changes in climate patterns

Transition Risks

• Potential regulation or utilization of alternative energy sources
• Reputational risk

Opportunities

• Resource efficiency through efficient production and distribution processes.
• Energy source diversification through lower emission sources.
• Development of lower-emission products and services.

Reporting Standards

Frameworks Used: SASB, TCFD, GRI

Certifications: ISO 13485:2016, ISO 14001, ISO 45001, EU MDR and IVDR

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 3 (Good Health and Well-being)
• SDG 4 (Quality Education)
• SDG 5 (Gender Equality)
• SDG 7 (Affordable and Clean Energy)
• SDG 8 (Decent Work and Economic Growth)
• SDG 9 (Industry, Innovation and Infrastructure)
• SDG 10 (Reduced Inequalities)
• SDG 12 (Responsible Consumption and Production)

Hologic's initiatives contribute to these SDGs through women's health programs, STEM education, renewable energy adoption, ethical labor practices, and sustainable operations.

Sustainable Products & Innovation

• Redesigned shipping containers and collection devices with reduced material and energy use.

Awards & Recognition

• Gallup Exceptional Workplace Award
• Shingo Prize (Hologic Costa Rica)

Environmental Metrics

ESG Focus Areas

• Women's Health
• Corporate Citizenship
• Our People
• Governance

Environmental Achievements

• Costa Rica site dramatically reduced waste sent to landfills
• San Diego campus implemented a new recycling program
• Implemented reusable plastic corrugated shipping cases reducing carbon footprint
• Increased shipping efficiency eliminating two full containers per month or 24 containers per year, reducing Hologic’s carbon footprint

Social Achievements

• Launched Hologic Global Women’s Health Index, expanding to 143 countries
• Launched Hologic WTA Women’s Health Taskforce
• Partnered with Kelee Ringo and his mother to educate women on the importance of annual mammograms
• Partnered with Know Your Lemons Foundation for breast cancer awareness
• Partnered with Dr. Jana Pittman to raise awareness of heavy menstrual bleeding in Australia
• Global Access Initiative impacted more than 900,000 patients
• No significant gender pay gap throughout the workforce

Governance Achievements

• 50% of Board of Directors are women
• Implemented year-round shareholder engagement
• Conducted annual pay equity audits

Climate Goals & Targets

Environmental Challenges

• Global semiconductor chip shortage impacting capital sales
• Maintaining supply chain stability and mitigating risks
• Addressing health disparities in the United States

Mitigation Strategies

• Created a printed circuit board refurbishment program (Project Reclaim)
• Shifted some shipping capacity from air and ground to ocean freight
• Implemented risk assessments for supply chain management
• Recommitted to Project Health Equity initiative

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct
• Supplier diversity initiatives (over 10% of spend with diverse suppliers)

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Flooding
• Wind
• Fire
• Earthquakes
• Volcanoes
• Forest fires

Transition Risks

• Regulatory changes
• Market shifts
• Potential regulation or utilization of alternative energy sources

Opportunities

• Resource efficiency through efficient production and distribution
• Energy source diversification
• Development of lower-emission products and services

Reporting Standards

Frameworks Used: SASB, TCFD

Certifications: ISO 13485:2016, ISO 14001, ISO 45001, EU MDR, IVDR

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 3 (Good Health and Well-being)
• SDG 4 (Quality Education)
• SDG 5 (Gender Equality)
• SDG 7 (Affordable and Clean Energy)
• SDG 8 (Decent Work and Economic Growth)
• SDG 9 (Industry, Innovation and Infrastructure)
• SDG 10 (Reduced Inequalities)
• SDG 12 (Responsible Consumption and Production)

Hologic's initiatives contribute to these goals through various programs and data collection efforts (see report for details).

Sustainable Products & Innovation

• Reusable shipping cases
• Refurbished components (Project Reclaim)

Awards & Recognition

• Gallup Exceptional Workplace Award
• Fortune Best Workplaces in Healthcare
• Newsweek America’s Most Responsible Companies
• Forbes America’s Best Midsize Employers
• Barron’s The 100 Most Sustainable U.S. Companies
• Fast Company World Changing Ideas Finalist
• Drucker Institute’s Best-Managed Companies
• IMV ServiceTrak awards
• Great Place to Work certification
• The Boston Globe Top Places to Work in Massachusetts
• The San Diego Union-Tribune Best Large Companies
• Laureus Sport for Good Index