Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Ethics and Compliance
• Employee Wellbeing
• Equal Opportunities
• Corporate Social Responsibility

Environmental Achievements

• Reduced energy consumption by 35% at the UK manufacturing facility.
• Reduced paper usage by moving to electronic documentation.
• Replaced fluorescent lighting with energy-efficient LED bulbs, reducing electrical consumption by 75%.

Social Achievements

• Finalised an employee engagement program.
• Implemented initiatives to improve donor sourcing and processing.
• Addressed the individual needs of employees to provide a functional working environment that enables a healthy work/life balance.

Governance Achievements

• Adopted the latest Quoted Company Alliance Corporate Governance Code.
• Established procedures to implement the guidance in the “Internal Control Guidance for Directors on the Combined Code” (The Turnbull Report).
• Operates two subcommittees, the Audit and Renumeration Committees, to ensure compliance with market regulations.

Climate Goals & Targets

Environmental Challenges

• Capacity constraints at the San Antonio facility.
• Cyber attack in January 2020.
• COVID-19 pandemic impacting elective surgical procedures.

Mitigation Strategies

• Commenced a second shift at the San Antonio facility.
• Outsourcing a percentage of DermaPure production to Community Tissue Services.
• Implemented an action plan to mitigate the impact of the cyber attack.
• Secured US Government-backed loans to assist with US overhead costs during the COVID-19 pandemic.
• Implemented cost-saving initiatives to extend the cash runway.

Supply Chain Management

Supplier Audits: Regular audits to ensure ethical standards and compliance.

Responsible Procurement

• Ethically sourced and handled tissues.
• Stringent audit of suppliers to ensure compliance with internal standards and third-party moderators.

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• DermaPure non-oriented product.

Environmental Metrics

ESG Focus Areas

• Sustainability

Governance Achievements

• ISO 13485 accreditation for the Garforth, Leeds facility received in February 2021

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting elective surgeries and causing unpredictable demand for products.
• February 2021 winter storm in Texas temporarily affecting processing at San Antonio facility.
• Supply chain driven price increases.

Mitigation Strategies

• Expanded donor sourcing efforts.
• Implemented initiatives and guidelines to minimize disruption from the pandemic.
• Implemented a battery back-up system (planned for 2022) to address power grid failures.
• Price increase in the BioRinse® division to address cost pressures.
• Transferred certain excess tissues at a reduced margin to manage inventory.

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• DermaPure® Meshed
• VNEW™
• MatrixND™

Environmental Metrics

ESG Focus Areas

• Sustainability

Environmental Achievements

• Implemented a cardboard recycling program at the CellRight location in San Antonio, TX.
• Contracted with an external recycling company to remove surplus electronics for sustainable disposal.

Social Achievements

• Expanded relationships with donor sources to include tissue types not commercially distributed by the Group, thereby maximizing the gift of tissue donation.
• Maintained open and transparent channels of communication with all employees to promote values and behaviors which consistently reflect the Group’s ethos, and to ensure that employees are aware of company developments and successes.
• Undertook regular audit checks to ensure that partners, suppliers, and employees comply with ethical standards and operate to meet expectations.

Governance Achievements

• Complied with the Quoted Companies Alliance Corporate Governance Code (the ‘QCA Code’).

Climate Goals & Targets

Environmental Challenges

• Staff shortages at healthcare institutions impacting elective procedures.
• Component and material supply chain issues affecting operations or those of material or equipment providers due to global supply issues.
• Lengthened timelines of third-party vendors and services.
• Wage inflation and a tight labor market making it competitive to retain or recruit talented personnel.

Mitigation Strategies

• Remained flexible and proactive in responding to and addressing needs by expanding its supply chain while still growing the sales line.
• Maintains competitive incentive and reward structures benchmarked against industry standards.
• Compensation levels are designed to be attractive to existing employees and enable the company to continue to attract high-quality applicants for new roles.
• Clearly defined roles and responsibilities, supported by documented systems and procedures, to provide a level of continuity in the event an employee leaves the Group.
• Suitable legal agreements are in place with management and employees to include necessary confidentiality and non-compete clauses.

Supply Chain Management

Responsible Procurement

• All suppliers are comprehensively qualified to meet the Group’s internal standards and those imposed by third-party moderators.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UK-adopted International Accounting Standards

Certifications: AATB, ISO 13485

Third-party Assurance: RSM UK Audit LLP

Environmental Metrics

ESG Focus Areas

• Sustainability

Environmental Achievements

• Implemented new environmental sustainability initiatives related to plastics recycling to reduce its environmental footprint.

Social Achievements

• Expanded relationships with donor sources to include tissue types not commercially distributed by the Group, thereby maximizing the gift of tissue donation.
• Maintained open and transparent channels of communication with all employees to promote values and behaviours that consistently reflect the Group’s ethos and to ensure that employees are aware of company developments and successes.
• Maintained competitive incentive and reward structures for employees, benchmarked against industry standards.

Governance Achievements

• Complied with the Quoted Companies Alliance Corporate Governance Code (QCA Code).

Climate Goals & Targets

Environmental Challenges

• Supply chain issues (costs increased since the pandemic)
• Labour shortages (at the beginning of the year)
• Regulatory approval delays (for third-party logistics partner and Australia)
• Mid-year production issues related to a bioburden spike at the Leeds facility (impacted OrthoPure XT distribution)
• Supply issues in Germany for GBM-V due to COVID-19 concerns

Mitigation Strategies

• Absorbed most cost increases through operational efficiencies.
• Expanded supply chain while growing sales.
• Received approval to distribute tissue from a third-party logistics partner in the Republic of Ireland.
• Addressed inventory issues in Leeds and resumed discussions with additional EU distribution partners.
• Implemented a program to manage inventory of Released Donor Tissue by making some available to other processing companies.
• Expanded the number of donor agencies worked with in the U.S.
• Completed a capacity expansion in 2021 providing processing capacity of approximately USD40 million.
• Implemented Sage X3 ERP system to increase efficiencies.

Supply Chain Management

Supplier Audits: The Group regularly audits its suppliers to ensure that the highest ethical standards are maintained.

Responsible Procurement

• Comprehensive qualification of all suppliers to meet internal and third-party standards.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UK-adopted IAS

Third-party Assurance: RSM UK Audit LLP

Sustainable Products & Innovation

• Introduced a smaller DermaPure Mesh product.
• Implemented new processing protocols and reagents to improve product safety and implemented a low-dose sterilization process for sports medicine tendon grafts.