Climate Change Data

Environmental Metrics

ESG Focus Areas

• Innovation
• Education
• Quality
• Sustainability
• Community Engagement

Environmental Achievements

• Introduced single-use GMK Efficiency instrumentation, resulting in water savings of about 435 liters per knee operation.
• Offsetting CO2 emissions from GMK Efficiency production through support for environmental sustainability projects.

Social Achievements

• Opened MyBaby company nursery in 2011, supporting parenting and promoting women's return to work after maternity leave.
• 100% rate of return after maternity leave at headquarters.
• 1.03% absenteeism due to illness at headquarters.
• Medacta for Life Foundation supported 21 organizations and associations.
• Organized the 8th M.O.R.E. International Symposium in Lugano, attracting over 1,200 surgeons.

Governance Achievements

• Developed a compliance program based on MedTech Europe's code of ethics and local regulations.
• Internal group pursuing CAS in Corporate Social Responsibility at SUPSI.

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Use of raw materials from suppliers qualified by the certified quality management system.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: QualiNido from kibesuisse (for MyBaby nursery)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 3 (Good Health and Well-being)
• SDG 4 (Quality Education)
• SDG 8 (Decent Work and Economic Growth)

Medacta's mission focuses on patient well-being, and the foundation contributes to education and economic growth.

Sustainable Products & Innovation

• GMK Efficiency instrumentation

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Innovation
• Healthcare sustainability
• Local community engagement
• Sustainable mobility
• Employees well-being
• Culture of excellence
• Emissions reduction
• Minimizing waste
• Quality
• Education
• Philanthropic contributions
• Professional development
• Humanitarian initiatives

Environmental Achievements

• Signed an agreement with AEnEC to reduce power consumption and CO2 emissions; introduced GMK Efficiency single-use instrumentation, resulting in water savings compared to reusable metal instruments; offset CO2 emissions from GMK Efficiency through environmental sustainability projects.
• Reduced number of cars by 335 through car-pooling.

Social Achievements

• 100% rate of return after maternity leave; established Medacta for Life Foundation promoting parenting and women's return to work after motherhood; MySchool Ticino bilingual school for children aged 0-10 years; supported 19 organizations and associations; implemented various employee wellbeing initiatives (infirmary, company doctor, early return home options, agreements with local restaurants and gyms, public transport subsidies).
• Provided 13,201 hours of continuing training and 9,145 hours of training for new employees; offered 119 professional courses and language courses to 100 employees; completed CAS (Certificate of Advanced Studies) in Corporate Social Responsibility.

Governance Achievements

• Successful generational transition in company leadership; commitment to good corporate governance; active participation in Global Compact Network Switzerland.

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Use of raw materials from suppliers qualified by the certified quality management system.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: QualiNido (MyBaby nursery school)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

The report mentions alignment with the UN's 17 Sustainable Development Goals (SDGs) but doesn't specify which goals.

Sustainable Products & Innovation

• GMK Efficiency single-use instrumentation

Awards & Recognition

• Fourchette Verte award (MySchool)

Environmental Metrics

ESG Focus Areas

• Innovation
• Education
• Healthcare Sustainability
• Employee Well-being
• Culture of Excellence
• Environmental Sustainability
• Community Engagement
• Humanitarian Initiatives

Environmental Achievements

• Reduced number of cars by 353 through carpooling
• Evaluating initiatives to eliminate plastic cups and reduce plastic waste

Social Achievements

• Launched #beMedacta campaign to reinforce company values
• Paid a 20-Year Anniversary Fidelity Bonus to all employees
• 100% rate of return after maternity leave
• Supported employee well-being through flexible working hours, paid leave for medical visits and family situations, gym agreements, and a wedding bonus.
• My School Ticino: Bilingual school for children aged 0-10 years

Governance Achievements

• Successful IPO at SIX Swiss Exchange

Climate Goals & Targets

Environmental Challenges

• Reducing environmental impact (emissions and power consumption)
• Minimizing waste (plastic waste)

Mitigation Strategies

• Agreement with AEnEC to reduce environmental impact
• Contract with fuel suppliers for renewable energy
• Evaluating on-demand local printing to reduce costs and emissions

Supply Chain Management

Responsible Procurement

• Use of raw materials from suppliers qualified by certified quality management system

Climate-Related Risks & Opportunities

UN Sustainable Development Goals

• Goal 3: Good Health and Well-being
• Goal 4: Quality Education
• Goal 8: Decent Work and Economic Growth
• Goal 9: Industry, Innovation and Infrastructure
• Goal 16: Peace, Justice and Strong Institutions

Awards & Recognition

• MedTech Breakthrough Award for orthopaedics and surgical innovation for MIS MySpine MC

Environmental Metrics

ESG Focus Areas

• Innovation
• Employee well-being
• Emissions reduction
• Local community engagement
• Healthcare sustainability

Environmental Achievements

• 20% reduction of CO2 emissions (scope 1) in our manufacturing plants
• 91% of waste recycled, including waste to energy
• Elimination of fuel oil in the heating systems of our production facilities
• ~2,790 kg paper saved thanks to local on-demand printing
• ~17,350 kg CO2 emissions saved thanks to local on-demand printing
• 4.3 million liters of water saved with GMK Efficiency vs metal reusable instrumentation

Social Achievements

• Extension of our #beMedacta campaign worldwide
• Update of the Group Performance Review system according to our values
• Launch of the M.O.R.E. in Touch program
• 100% rate of return after maternity leave
• ~10,300 hours of training dedicated to new employees
• +82 new jobs added

Governance Achievements

• Adoption of a dedicated sustainability Board Member (May 2021)
• Appointment of an interfunctional Corporate Responsibility Team (July 2021)
• Long-term incentive plan for Group Executive Management and selected key managers and employees (March 2021)

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting operations and financial results (deferral of elective procedures, social contact restrictions)

Mitigation Strategies

• Prudent discretionary initiatives in cost containment
• Savings generated by COVID-19 restrictions
• Adoption of remote working
• Implementation of safety measures (social distancing, hand sanitizer, temperature measurement, masks)
• Expansion of online educational activities (M.O.R.E. in Touch program)

Supply Chain Management

Responsible Procurement

• Structured qualification and monitoring process of our suppliers

Climate-Related Risks & Opportunities

UN Sustainable Development Goals

• Goal 3
• Goal 4
• Goal 8
• Goal 9
• Goal 13
• Goal 16

Sustainable Products & Innovation

• GMK Efficiency system

Awards & Recognition

• CO2 neutral certificate for our GMK Efficiency instrumentation

Environmental Metrics

ESG Focus Areas

• Innovative solutions
• Caring for people
• Caring for the environment
• Caring for the community

Environmental Achievements

• Complete elimination of fuel oil since March 2021
• Utilization of 100% green energy in manufacturing plants
• Renewed CO2 neutral certificate for GMK Efficiency instrumentation
• Metric tons of CO2 emissions per revenue decreased by 17% from 1.31 in 2020 to 1.08 in 2021
• 91% of waste recycled or converted to energy

Social Achievements

• Continued adaptation of COVID-19 health and safety measures
• Implementation of a long-term incentive plan for Group Executive Management and selected key personnel
• Launch of an automated performance review process
• 26.1 hours of average training for employees
• 100% rate of return after maternity leave
• Support for 42 organizations and associations by Medacta for Life Foundation

Governance Achievements

• Updated Organizational Regulations to formalize the Board of Directors’ responsibility for Corporate Sustainability
• Adoption of a Group Code of Business Conduct and Ethics
• ESG rating upgraded to 'AA' from 'A' by MSCI
• Strengthened supplier qualification process regarding legal and environmentally responsible sourcing

Climate Goals & Targets

Environmental Challenges

• Persistent challenges of the pandemic

Mitigation Strategies

• Adaptation of COVID-19 health and safety measures
• Continued pursuit of growth strategy through hiring
• Implementation of robust succession plan for key personnel

Supply Chain Management

Responsible Procurement

• Integration of the respect of employee human rights and legal and environmentally responsible sourcing of materials in the qualification process of suppliers

Climate-Related Risks & Opportunities

UN Sustainable Development Goals

• Goal 3
• Goal 4
• Goal 8
• Goal 9
• Goal 13
• Goal 16

Environmental Metrics

ESG Focus Areas

• Innovative solutions
• Caring for people
• Caring for the environment
• Caring for the community

Environmental Achievements

• Reduced GHG emissions (Scope 1) by 25% since 2019
• Achieved 100% renewable electricity in manufacturing facilities since January 2021
• Installed photovoltaic system at Castel San Pietro site with an estimated annual production of 216,000 kWh
• 87% of waste recycled or converted to energy
• Reduced water consumption per revenue by 8% since 2019

Social Achievements

• Launched "What We Do Matters" campaign to inspire employees
• Increased Medacta donations to Medacta for Life Foundation by 42%
• Launched employee Personal Development Plan process
• Expanded automated Performance Review process for all employees globally
• Expanded long-term incentive plan
• 100% rate of return after maternity leave

Governance Achievements

• Updated Organizational Regulations to formalize Board of Directors’ responsibility for Corporate Sustainability
• Adopted a Group Code of Business Conduct and Ethics
• Implemented a Corporate Compliance Program
• Strengthened supplier qualification process regarding legal and environmentally responsible sourcing

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Requires suppliers to adhere to the Code of Business Conduct and Ethics
• Evaluates respect for human rights and safe working conditions in supplier qualification process

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: UN Sustainable Development Goals (SDGs)

Certifications: ISO 13485, MDSAP

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• 3, 4, 7, 8, 9, 13, 16

Not disclosed

Sustainable Products & Innovation

• GMK Efficiency single-use instrument set

Awards & Recognition

• 2022 Spine Technology Award (NextAR Spine)

Environmental Metrics

ESG Focus Areas

• Caring for patients
• Caring for people
• Caring for the environment
• Caring for the community

Environmental Achievements

• Reduction of water consumption in production process in Castel San Pietro facility
• Project activated with optimizations on a specific product line to reduce scrap from raw materials

Social Achievements

• Significant investment and progress made to enhance our HQ payroll and time and attendance software, including the introduction of an Employee & Manager self-service portal.
• Development of our learning agenda has led to the creation of a blended-learning approach. Including partnering with a world renowned academic institution with the launch of 2 distinctive learning pathways.
• We continue to enhance and improve our employee benefits, such as increasing time off with 100% pay for both maternity and paternity above the statutory requirements. Including the introduction of our new employee recognition program.
• New goals achieved during the year, such as the enlargement of the My School Ticino Campus, the creation of a new nursery section (spring section), the creation of a technology classroom (STEM), and much more.
• Contribution to support the Ukrainian population afflicted by the conflict with the donation of instruments for operating rooms, and other humanitarian initiatives.
• Several projects, both ongoing and recently started, have blossomed over the year. Among the novelties is the support for the requalification of Laveggio Park, Ticino. Ongoing projects include Punto d'Incontro and Famiglia Affidataria Professionale (FAP) project, in cooperation with ATFA, and Territorial Education Project.

Governance Achievements

• The Report was approved by the Board of Directors (“BoD”) of Medacta Group SA, issued at the meeting on 12 March 2024.
• In 2023, there were no identified cases of corruption or violation of our code of business conduct and ethics.
• 1’416 employees successfully completed the anti-corruption training session.

Climate Goals & Targets

Environmental Challenges

• Contract's signing postponed due to technical reasons (Expansion of photovoltaic panels installation).

Mitigation Strategies

• Added new projects to furtherly improve production processes (Reduction of water consumption).

Supply Chain Management

Supplier Audits: 36% in 2023

Responsible Procurement

• Code of Business Conduct and Ethics

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 13485, MDSAP

UN Sustainable Development Goals

• 3
• 4
• 7
• 8
• 9
• 13
• 16

Our commitment to these goals is manifested in our sustainability approach.

Sustainable Products & Innovation

• GMK Efficiency (single-use instrument set)