Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Implemented measures to reduce packaging, water, and energy consumption.

Social Achievements

• Workforce was 52% female, 53% of managers were women; no reported workplace injuries; employee turnover rate of 11%; donations to charities and schools; partnership with UNICEF to provide COVID-19 tests in Africa.

Governance Achievements

• Adopted the 2018 Quoted Companies Alliance Corporate Governance Code; established an Audit Committee, a Remuneration Committee, and a Nomination Committee; implemented an anti-bribery policy.

Climate Goals & Targets

Environmental Challenges

• Unprecedented sales demand for COVID-19 products requiring significant scaling up of operations; dispute with DHSC regarding a supply contract.

Mitigation Strategies

• Managed a network of subcontractors to access additional manufacturing capacity; established a product warranty provision to address the DHSC dispute; implemented systems to track customer satisfaction.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: QCA Code

Certifications: OHSAS 18001, ISO 13485:2016, ISO 9001:2015

Sustainable Products & Innovation

• New PROmate® design features less plasticware.

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced energy consumption per unit output through scaling up production, increasing asset utilization, and increasing automation.
• Reduced transportation across the value chain by bringing RNase-free water production in-house and reducing road transportation through increased in-house manufacturing.

Social Achievements

• Launched an Employee Assistance Programme to support employees and their families.
• Partnered with a specialist organisation to re-engage employees absent due to health issues.
• Offered a comprehensive range of employment benefits.
• Donated £500,000 to 25 schools and 50 charities.
• Donated one million COVID-19 PCR tests to UNICEF for distribution to various countries.

Governance Achievements

• Implemented an anti-bribery policy.
• Established a Charity Committee.

Climate Goals & Targets

Environmental Challenges

• Ongoing commercial dispute with the DHSC.
• Unplanned employee turnover rate of 30% in 2021.
• Rapid scientific and technological change in the biotechnology sector.
• Competitive pressures including price discounting and product obsolescence.
• Risks associated with operating in multiple jurisdictions.
• Potential delays or failures in product development.
• Risk of product liability claims.
• Reliance on sole suppliers for some products and services.
• Reliance on third-party distributors.
• Challenges in acquiring strategically complementary businesses.
• Potential for litigation and arbitration.
• Dependence on key personnel.
• Uncertainty in tender processes.
• Compliance with evolving regulatory environments (IVDR, UKCA).
• Compliance with employment laws.
• Compliance with GDPR.
• Reliance on information technology systems.
• Impact of Brexit.
• Protection of intellectual property rights.
• Potential infringement of third-party patents.
• Protection of trademarks.
• Customer concentration risk.
• Risk of bad debts.
• Exposure to foreign exchange rate fluctuations.
• Impact of the SARS-CoV-2 pandemic.

Mitigation Strategies

• Implementing energy efficiency actions (asset utilization, process improvements).
• Reducing transportation through in-sourcing and improved logistics.
• Providing employee support programs (EAP, re-engagement initiatives).
• Investing in employee training and development.
• Maintaining regular communication with shareholders.
• Implementing robust policies and procedures to mitigate risks (anti-bribery, health & safety).
• Strengthening commercial management team.
• Diversifying revenue streams beyond the UK.
• Adapting to market and customer needs.
• Developing integrated near-patient workflow solutions.
• Investing in R&D and new product development.
• Strengthening commercial organization.
• Maintaining appropriate insurance coverage.
• Exploring opportunities to expand supplier base.
• Actively managing the transition away from COVID-19 revenues.
• Implementing a robust credit control process.
• Regularly reviewing and monitoring cash flows.
• Maintaining adequate reserves and banking facilities.
• Vigorously defending intellectual property rights.
• Seeking to expand its supplier base.
• Refining and enhancing its distributor network.
• Managing the increased clinical and regulatory complexity of IVDR.

Supply Chain Management

Responsible Procurement

• The report mentions the reliance on sole suppliers for some products and the exploration of expanding the supplier base.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Streamlined Energy & Carbon Reporting

Certifications: OHSAS 18001

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced total energy use by 16% compared to 2021 (excluding Microgen and Lab21), attributed to reduced operations post-COVID-19.
• Reduced total Scope 1, 2, and 3 GHG emissions by 22% compared to 2021 (excluding Microgen and Lab21), attributed to reduced operations post-COVID-19.
• Reduced energy consumption per unit output through scaling up production, increased asset utilization, and increased automation.
• Site consolidation to reduce footprint and improve energy efficiency.
• Actions taken to reduce single-use waste by increasing reused and recycled materials (e.g., reusable lab coats).

Social Achievements

• Completion of Manager Development Programme with 14 employees receiving certification.
• Charitable giving of £16,000 to 35 fundraising campaigns supporting education, Ukrainian crisis, mental health, and other causes.
• Employee Assistance Programme to support employees and their families.

Governance Achievements

• Implementation of an anti-bribery policy complying with the UK Bribery Act 2010.

Climate Goals & Targets

Environmental Challenges

• Faster than anticipated decline in COVID-19 related sales.
• Competitive pressures in the biotechnology sector.
• Geographic market risks (contract renegotiation, political instability, etc.).
• Product development challenges (delays, unsuccessful products).
• Product liability claims.
• Reliance on sole suppliers.
• Regulatory environment changes (IVDR, Brexit).
• Employment law compliance.
• GDPR compliance.
• Reliance on third-party distributors.
• Litigation and arbitration (DHSC dispute).
• Dependence on key personnel.
• Uncertainty in tender processes.
• Protection of intellectual property rights.
• Infringement of third-party intellectual property.
• Information technology security breaches.
• Brexit-related complexities.
• Protection of trademarks.
• Risk of bad debts.
• Foreign exchange rate fluctuations.
• Post-pandemic volatility in healthcare demand.

Mitigation Strategies

• Transitioning away from COVID-19 revenue and right-sizing the cost base.
• Accelerated post-COVID-19 product development efforts.
• Geographic expansion and optimization of global distributor network.
• Development of RUO versions of target therapeutic areas as a first step.
• Maintaining customary industry insurance levels.
• Evaluating strategic M&A, partnership, and licensing opportunities.
• Implementing an anti-bribery policy.
• Continuous monitoring of regulatory requirements and compliance.
• Continuous monitoring of key personnel and succession planning.
• Vigorous defense of intellectual property rights.
• Continuous monitoring of cash flow, annual revenue, and capital forecasts.
• Regular meetings of the Executive team.
• Implementation of a whistleblowing policy.
• Ongoing credit evaluation and risk management.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Streamlined Energy & Carbon Reporting

Certifications: OHSAS 18001

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Consolidation of manufacturing in Southampton, eliminating the need to transfer stock between sites and reducing partial shipments to customers, minimizing shipping costs, material waste, and energy consumption.
• Substantial completion of the roll-out of automatic LED lighting.

Social Achievements

• Launched employee well-being program, reducing turnover by 20% in 2023.
• 22 internal promotions and six secondments in the previous six months.
• Combined charity committees from Southampton and Manchester sites, supporting local communities with a total spend of £15,370.

Governance Achievements

• Acquisition of Yourgene Health Ltd, expanding product portfolio and geographic footprint.
• Strengthened Board with the addition of Lyn Rees and Dr John Brown.
• Appointment of Steve Gibson as CFO and Dr Jo Mason as Chief Scientific Officer.

Climate Goals & Targets

Environmental Challenges

• Reduced COVID-19 sales.
• Ongoing DHSC contract dispute.
• Integration of Yourgene Health.
• Competitive pressures in the biotechnology sector.
• Rapid scientific and technological change.
• Product liability claims.
• Reliance on sole suppliers.
• Reliance on third-party distributors.
• New IVDR regulations.
• Information technology security breaches.
• Protection of intellectual property rights.
• Infringement of third-party patents.
• Protection of trademarks.
• Customer concentration.
• Bad debts.
• Foreign exchange rate fluctuations.

Mitigation Strategies

• Streamlining operations and reducing duplicate roles.
• Implementing actions to deliver annual cost reductions of over £4.0m for 2024.
• Investing in R&D and commercial strength.
• Focusing on NIPT, Ranger® Technology, and Precision Medicine.
• Obtaining IVDR certification for clinical products.
• Consolidating manufacturing in Southampton to reduce waste and energy consumption.
• Implementing robust policies and procedures for combating bribery and corruption.
• Maintaining a level of insurance customary for the industry.
• Expanding supplier base.
• Evaluating options for the future of the Taiwanese laboratory business.
• Vigorously defending intellectual property through litigation.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Streamlined Energy & Carbon Reporting