Climate Change Data

Probi AB

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

Reporting Period: 2021

Environmental Metrics

Water Consumption:20.18 Megaliters (in relation to produced probiotic culture in KG in Probi USA)

ESG Focus Areas

  • Contribute to healthier lives
  • Act responsibly
  • Stop climate change

Environmental Achievements

  • Reduced water consumption by around 60% in the Redmond, Washington facility through upgrades to the cooling system.

Social Achievements

  • Implemented a new Hybrid Working Model allowing employees to choose between working from home and in the office.
  • Implemented a Supplier Code of Conduct.
  • 89% of Probi employees completed annual anti-corruption training.
  • 100% of Probi employees have signed the company’s internal Code of Conduct.

Governance Achievements

  • Formulated a new sustainability strategy linked to the UN’s 17 Sustainable Development Goals.

Climate Goals & Targets

Long-term Goals:
  • Achieve net zero or negative climate emissions by 2040 but no later than 2050.
Medium-term Goals:
  • By 2030, to increase the impact on well-being for everyone through the availability of scientifically-proven probiotic products.
  • By 2030, reduce resource use, especially water and energy, in manufacturing in the USA.
  • By 2030, reduce waste significantly in operations through prevention, reduction, recycling and reuse.
  • Do our utmost to halve emissions in our operations and value chain by 2030.
Short-term Goals:
  • By 2025, all our suppliers will adhere to the established principles of safety, security, diverse and inclusive environments for employees.

Environmental Challenges

  • Weaker underlying demand in the Americas region in 2021 and loss of major customer orders.
  • High labor market volatility among production workers in the USA and effects of Covid-19 leading to high employee turnover.
  • Unsatisfactory working conditions and unsustainable resource use by Probi’s suppliers.
Mitigation Strategies
  • Continued upgrade of the manufacturing facility in Redmond, Washington to increase efficiency and profitability.
  • Implementation of a new Hybrid Working Model and other initiatives to improve employee well-being and retention.
  • Implementation of a Supplier Code of Conduct and regular audits of Probi’s contractual suppliers.

Supply Chain Management

Supplier Audits: Regular audits of Probi’s contractual suppliers; 43% of suppliers to whom the Code of Conduct was sent signed it in 2021.

Responsible Procurement
  • Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks
  • Floods and intense heat waves may affect insurance costs, the transport of goods and readiness to invest.
Transition Risks
  • Changes in consumer trends
Opportunities
  • Protecting the climate and the environment is a focus area for all our existing and potential partners, and Probi’s commitment and monitoring is a prerequisite for growth.

UN Sustainable Development Goals

  • Goal 3: Good Health and Well-being
  • Goal 12: Responsible Consumption and Production
  • Goal 13: Climate Action

Probi’s sustainability strategy aims to ensure that sustainability efforts take place in all parts of the business and contribute to the UN’s Sustainable Development Goals for 2030.

Reporting Period: 2022

Environmental Metrics

Renewable Energy Share:100% renewable electricity in Lund office; part of electricity in Redmond, Washington is fossil-free
Total Energy Consumption:2,768,610 kWh/year; 81,193 Therms/year
Water Consumption:18.79 Megaliters/year (in relation to produced probiotic culture in KG in Probi USA)

ESG Focus Areas

  • Contributing to healthier lives
  • Stopping climate change
  • Acting responsibly

Environmental Achievements

  • New skincare product (SymFerment®) produced from a by-product, contributing to reduced environmental costs and impact.
  • Reduced water consumption by around 60% thanks to a new cooling system in Redmond, Washington.

Social Achievements

  • Formalized Hybrid Working Model, allowing employees to work from home and in the office.
  • Implemented compensation strategies and revised benefits packages to address economic hardships due to inflation.
  • Implemented a new whistleblowing system.

Governance Achievements

  • 83% of employees signed the company's internal Code of Conduct.
  • 100% of Probi's new employees in selected departments completed annual Trade sanctions and insider policy training.

Climate Goals & Targets

Long-term Goals:
  • Achieve net zero or negative climate emissions by 2040 but no later than 2050.
Medium-term Goals:
  • By 2030, halve emissions in operations and value chain; reduce energy consumption per product; reduce emissions from freight; significantly reduce waste in operations.
Short-term Goals:
  • By 2025, all suppliers will adhere to the established principles of safety, security, diverse and inclusive environments for employees.

Environmental Challenges

  • Supply chain disruptions due to temporary shortages of raw materials at manufacturing facilities in the US.
  • Weaker underlying demand in the Americas region.
  • Negative impact on market sentiment in EMEA due to the war in Ukraine.
  • One customer canceled its product launch in EMEA.
  • Pandemic-related delays in China and Australia.
Mitigation Strategies
  • Strengthened sales team in the Americas.
  • Relocated senior account managers to the US.
  • Took over distribution of Probi® brand in Sweden (April 1, 2023).
  • Continued collaboration with Sinopharm in China and Australia.
  • Continued investment in the manufacturing facility at Redmond, Washington.

Supply Chain Management

Supplier Audits: Quality Assurance team performs audits; 91% of suppliers signed Code of Conduct in 2022.

Responsible Procurement
  • Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks
  • Floods and intense heat waves affecting insurance costs, transport of goods, and investment readiness.
Transition Risks
  • Changes in environmental legislation affecting operations.
Opportunities
  • Commitment to the environment is a focus area for partners; clear commitment to the environment is a prerequisite for consumers.

Reporting Standards

Frameworks Used: UN's 17 Sustainable Development Goals (focus on three)

Certifications: Science Based Target initiative (sustainability goals)

Third-party Assurance: Ernst & Young AB

UN Sustainable Development Goals

  • Goal 3: Good health and well-being
  • Goal 7: Affordable and clean energy
  • Goal 12: Responsible consumption and production
  • Goal 8: Decent work and economic growth
  • Goal 17: Partnerships for the goals

Probi's sustainability strategy and initiatives contribute to these goals.

Sustainable Products & Innovation

  • SymFerment®

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:Not disclosed
Scope 1 Emissions:Not disclosed
Scope 2 Emissions:Not disclosed
Scope 3 Emissions:Not disclosed
Renewable Energy Share:100% in Lund office; 36% in Lafayette, CO manufacturing facility
Total Energy Consumption:3,352,845 kWh (electricity) and 114,431 Therms (heat) in 2023
Water Consumption:16.91 Megaliters in 2023 (Probi USA)
Waste Generated:Not disclosed
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Improved health through probiotics
  • Stopping climate change
  • Acting responsibly

Environmental Achievements

  • Reduced Scope 1 emissions by 27% vs 2022 and 1.13% lower than the 2023 target. This was achieved by increased efficiency in natural gas usage.
  • Reduced Scope 3 emissions by 19% vs 2022 emissions. Decreased emissions from purchased goods and services contributed to this positive development.
  • 100% renewable electricity used at Probi's offices in Lund, Sweden
  • 36% of the electricity used at the manufacturing facility in Lafayette, CO, is fossil-free.
  • Reduced water consumption by 39% compared to 2020 baseline (in Probi USA).

Social Achievements

  • Launched Probi® Sensia, a psychobiotic improving mood, memory, sleep, and learning.
  • Introduced new symbiotic products (Bimuno® GOS and Probi Defendum®, Bimuno® GOS and Probi Digestis®) in partnership with Clasado.
  • 51% increased sales of ClinBac™ products in the Chinese market compared to 2022.
  • 91% of suppliers signed the Code of Conduct.
  • Renewed insurance plan in the US, adapting to employee needs and life stages.
  • Living wage analysis confirmed all US employees earn above the living wage.
  • Ongoing ISO 45001 certification of Colorado facility.
  • Donation agreement with the University of Zimbabwe supporting education, medicines, and hospital equipment.

Governance Achievements

  • Joined the Science Based Targets initiative (SBTi).
  • Implemented a new whistleblowing system compliant with the new EU directive.
  • 96% of employees signed the Code of Conduct.
  • 100% of Probi's new employees in selected departments completed the annual insider policy training.
  • 94% of employees completed annual anti-corruption training.

Climate Goals & Targets

Long-term Goals:
  • Achieve net zero or negative climate emissions by 2040, but no later than 2050.
Medium-term Goals:
  • By 2030, halve emissions in operations and value chain; reduce energy consumption per manufactured product; significantly reduce waste in operations.
  • By 2030, boost the impact on well-being for all through access to scientifically proven probiotic products.
Short-term Goals:
  • By 2025, all suppliers will adhere to established principles of safety, security, and diverse and inclusive environments for employees.
  • Reduce resource use, especially water and energy, in manufacturing in the US.

Environmental Challenges

  • Consumers flooded with ineffective probiotic products from competitors.
  • Unsatisfactory working conditions and unsustainable resource use by Probi’s suppliers.
  • Finite resources (water and energy) and their price volatility.
  • Climate change threats affecting resource availability, prices, and insurance costs.
  • Reconciling growth strategies with emission reduction measures (Scope 2 emissions higher than targets).
Mitigation Strategies
  • R&D investment and partnerships to demonstrate health benefits of products.
  • Global sourcing policy standardizing guidelines for sustainable supply chain relationships.
  • Regular audits of contract suppliers and a Supplier Code of Conduct.
  • Integrating climate opportunities and risks into business strategy and management processes.
  • Internal projects for waste minimization.
  • Updated travel policy to minimize emissions from travel and commuting.
  • Innovative solutions to shorten raw material transport distances.

Supply Chain Management

Supplier Audits: Probi's quality assurance team conducts rigorous audits; 91% of surveyed suppliers signed the Code of Conduct (32% of supplier expenditures).

Responsible Procurement
  • Supplier Code of Conduct
  • Global sourcing policy
  • SEDEX for supply chain risk analysis

Climate-Related Risks & Opportunities

Physical Risks
  • Floods and intense heat waves affecting insurance costs, transport of goods, and investment readiness
Transition Risks
  • Changes in resource prices and availability
Opportunities
  • Protection of climate and environment as a focus for partners; consumer demand for environmentally conscious companies.

Reporting Standards

Frameworks Used: Swedish Annual Accounts Act, chapters 6-8

Certifications: GMP (for production facilities)

Third-party Assurance: Ernst & Young AB

UN Sustainable Development Goals

  • Goal 3: Good Health and Well-being

Probi's products and initiatives contribute to improved health and well-being.

Sustainable Products & Innovation

  • Probi® Sensia
  • Bimuno® GOS and Probi Defendum®
  • Bimuno® GOS and Probi Digestis®

Awards & Recognition

  • Not disclosed