Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced CO2 emissions to 15 tonnes (0.18 tonnes per £m turnover) in the UK. Note: This is only for UK operations and doesn't represent the entire company's emissions.

Social Achievements

• Donation of products to selected charities.
• Encouragement of staff participation in charitable activities.
• Contribution to local communities.
• Publication of Modern Slavery Act statement on website.
• Regular briefing of employees on Group activities.
• Monitoring of staff attrition rates and competitive compensation.

Governance Achievements

• Adoption of the Corporate Governance Code issued by the Quoted Company Alliance.
• Establishment of Audit and Remuneration Committees.
• Board evaluation of performance and effectiveness of Board committees.

Climate Goals & Targets

Environmental Challenges

• Retention of key employees.
• Political risk, particularly in Russia due to sanctions.
• Supply chain continuity issues.
• Regulatory risk (IVDR in EU and MHRA in UK).
• Competition risk from larger multinational companies.
• Intellectual property risk.
• Foreign exchange risk.
• Reimbursement levels from third-party payers.
• Financial reporting and disclosure.
• Cyber security risk.
• Pandemic risk (COVID-19).
• Plastic packaging tax in the UK.

Mitigation Strategies

• Incentivisation packages for key employees.
• Diversification of revenue streams geographically.
• Close dialogue with key suppliers and monitoring inventory.
• Adaptation to IVDR and MHRA requirements.
• Patent registration protection, confidentiality agreements, monitoring technological developments, and strong distribution partners.
• Developing products where patent protection is available, maintaining confidentiality agreements, and monitoring technological developments.
• Matching currency receipts and expenditure, and negotiating currency protection in contracts.
• Constant dialogue and education of third-party payers, and development of new technologies.
• Internal controls over financial information and reporting, and external audits.
• Robust security measures, staff training, and back-up systems.
• Plans to mitigate disruption, including remote working and increased supplier/customer contact.
• Increased knowledge of the tax and systems to measure its effect.

Supply Chain Management

Climate-Related Risks & Opportunities

Transition Risks

• Increased regulatory requirements from customers regarding net-zero initiatives.
• Potential for reductions in asset values or higher costs due to a greener economy.

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced energy usage through wastage and promoting video conferencing.

Social Achievements

• Donated product to selected charities; encouraged staff participation in charitable activities; maintained competitive staff compensation levels to attract and retain high-caliber personnel; conducted an Employee Engagement Survey.

Governance Achievements

• Adopted the Corporate Governance Code for Small and Mid-Size Quoted Companies from The Quoted Companies Alliance; established a formal and transparent procedure for developing policy on executive remuneration; implemented a system of internal control to provide reasonable assurance regarding the reliability of financial information.

Climate Goals & Targets

Environmental Challenges

• Longer than anticipated transition to non-COVID revenues in Contract Manufacturing and Laboratory Testing; underperformance in Contract Manufacturing and Laboratory Testing; rapid reduction in the market for COVID-related products; political risk in Russia; regulatory risk related to IVDR; cybersecurity risk; pandemic risk; climate change risks (physical and transitional); plastic packaging tax.

Mitigation Strategies

• Cost reduction, restructuring, and operational efficiency measures; closure of UK Contract Manufacturing operation; disposal of ADL Health; frequent communications with senior management in Russia; diversified revenue streams geographically; monitoring events and taking mitigating actions; securing patent registration protection; maintaining confidentiality agreements; working with experienced distribution partners; adapting to IVDR requirements; robust security measures, staff training, and back-up systems; monitoring events and taking mitigating actions; increasing knowledge of plastic packaging tax and introducing systems to measure its effect; securing a committed £3m of funding from North Atlantic Smaller Companies Investment Trust.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather events

Transition Risks

• Increased regulatory requirements from customers; move towards a greener economy; reductions in asset values or higher costs of doing business.

Reporting Standards

Frameworks Used: QCA Code

Environmental Metrics

ESG Focus Areas

• Climate Change
• Employee Wellbeing
• Corporate Social Responsibility

Environmental Achievements

• Reduced carbon emissions per £m of turnover to 0.18 tonnes of CO2 (2022: 0.19 tonnes of CO2). Improved energy efficiency by reducing electricity usage through lower wastage and promoting video conferencing.

Social Achievements

• Donated product to selected charities. Encouraged staff participation in charitable activities. Maintained competitive staff compensation levels to attract and retain high-calibre personnel. Closely monitored staff attrition rates.
• Applications for employment by disabled persons are always fully considered.

Governance Achievements

• Adopted the Corporate Governance Code for Small and Mid-Size Quoted Companies from The Quoted Companies Alliance (the “QCA Code”). Implemented a Senior Management team with a proven track record for delivery.

Climate Goals & Targets

Environmental Challenges

• Increasing raw material and other costs.
• Increased competition from India and China in clinical chemistry.
• Declining sales and increased technical challenges in STAT-Site M β-HB serum and plasma product line.
• Reduced revenues from Russia due to increased sanctions.
• Impact of sanctions and Russian Government retaliation on Russian operations.

Mitigation Strategies

• Consolidated product offering to focus on higher margin products and services.
• Discontinued non-core, low-margin products (clinical chemistry range and STAT-Site M β-HB).
• Opened upgraded Life Sciences facility in South Bend to improve downstream processing and attract new customers.
• Reduced revenue expectations from Russia.
• Diversified revenue streams geographically with a mixture of distribution partners in developing and developed countries.
• Cost savings made and the disposal of ADL Health, and a lower headcount across the other businesses.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather events

Transition Risks

• Increased regulatory requirements from customers regarding net zero initiatives.
• Potential reductions in asset values or higher costs of doing business due to a move towards a greener economy.

Reporting Standards

Frameworks Used: QCA Code