Climate Change Data

Coloplast A/S

Climate Impact & Sustainability Data (2011-10 to 2012-09, 2015-10 to 2016-09, 2017-10 to 2018-09, 2019-10 to 2020-09, 2020-2021, 2021-10 to 2022-09, 2022-10 to 2023-09)

Reporting Period: 2011-10 to 2012-09

Environmental Metrics

Total Carbon Emissions:54,933 tCO2e/year
Scope 1 Emissions:9,505 tCO2e/year
Scope 2 Emissions:45,428 tCO2e/year
Scope 3 Emissions:58,500 tCO2e/year
Total Energy Consumption:136,325 MWh/year
Water Consumption:274,205 m3/year
Waste Generated:9,145 tons/year

ESG Focus Areas

  • Environment
  • Social
  • Governance

Environmental Achievements

  • Achieved a 3% absolute reduction in CO2 emissions on energy use from production facilities, warehouses, and headquarters.
  • Increased production waste recycling from 18% to 24%.

Social Achievements

  • Launched the Corporate Responsibility Ambassador programme to increase transparency.
  • Improved standards with suppliers; reclassified 22 suppliers to a lower risk category.
  • Access to Healthcare projects have touched more than 3,500 end users and healthcare professionals.

Governance Achievements

  • 95% of white-collar employees completed mandatory Code of Conduct e-learning course.
  • Established a global whistleblower hotline.

Climate Goals & Targets

Medium-term Goals:
  • Double the number of women in top management by end of 2017 (from 11% to 22%)
Short-term Goals:
  • Reduce CO2 emissions by 10% by 2013/14

Environmental Challenges

  • Transfer of production to China and Hungary initially increased greenhouse gas emissions.
  • Unsafe employee behavior increased injury rates.
  • Inconsistency in how doctors across Europe report product errors.
Mitigation Strategies
  • Reversed the trend of increased greenhouse gas emissions.
  • Increased focus on safety by production site managers.
  • Advocating for a centralized reporting body for product errors.

Supply Chain Management

Supplier Audits: 100% of raw material suppliers covered by supply chain responsibility programme

Responsible Procurement
  • Supply chain responsibility programme covering human rights, labor rights, environmental issues, occupational health and safety, and business ethics.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G3.1, UN Global Compact

Certifications: ISO 9001/ISO 13485, ISO 14001, OHSAS 18001

Sustainable Products & Innovation

  • SpeediBag™ Compact (reduced plastic use)
  • SpeediCath Upgrade (reduced aluminum in packaging)

Awards & Recognition

  • One of the world’s 100 most ethical companies (Ethisphere Institute)
  • Most sustainable company in the healthcare sector (Storebrand)

Reporting Period: 2015-10 to 2016-09

Environmental Metrics

Total Carbon Emissions:43,461 tCO2e (Scope 1+2) + 156,350 tCO2e (Scope 3)
Scope 1 Emissions:9,318 tCO2e
Scope 2 Emissions:34,143 tCO2e
Scope 3 Emissions:156,350 tCO2e
Total Energy Consumption:137,448 MWh
Water Consumption:298,130 m3
Waste Generated:11,770 tons
Carbon Intensity:50 index (per unit produced relative to energy use)

ESG Focus Areas

  • Product safety
  • Anti-corruption
  • Energy and GHG emissions
  • Human rights
  • Supply chain responsibility
  • Employee well-being
  • Access to healthcare
  • Waste management
  • Recycling
  • Water management

Environmental Achievements

  • Launched a new catheter designed for easy, hygienic insertion.
  • On track with phthalate reduction target (40% reduction by 2017).

Social Achievements

  • Improved standards for wound care in China and access to catheters in Japan.
  • New global donation policy implemented.
  • New program to empower refugees launched.
  • Successful rollout of new Code of Conduct.
  • Increased percentage of women in top management.

Governance Achievements

  • Successful rollout of new Code of Conduct (Coloplast BEST).

Climate Goals & Targets

Short-term Goals:
  • Reduce air transportation to a maximum of 2.3% by 2017/18.
  • Increase percentage of women in top management to 22% by end of 2017.

Environmental Challenges

  • Slight increase in greenhouse gas emissions per product due to production expansion and transfer.
  • Increase in waste per product due to production transfer.
  • Significant increase in air transportation due to shortened delivery times and increased machine transferring.
Mitigation Strategies
  • Focusing on energy efficiency technologies in new production sites.
  • Working with waste handling companies to optimize recycling.
  • Systematically substituting air transportation with sea and ground transportation.

Supply Chain Management

Supplier Audits: 16 social audits performed in 2015/16

Responsible Procurement
  • Supply chain responsibility program for raw material suppliers (100% coverage).

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4 (for content and quality, not specific disclosures), UN Global Compact, UK Modern Slavery Act

Certifications: ISO 9001, ISO 13485, ISO 14001 (8 of 9 sites), OHSAS 18001 (10 of 13 sites)

Third-party Assurance: PricewaterhouseCoopers (PwC) - limited assurance on Product Safety, Anti-corruption, and Energy & GHG Emissions

UN Sustainable Development Goals

  • SDG 3 (Good Health and Well-being)

Coloplast's work to improve framework conditions and raise standards of care for people with intimate health care needs.

Sustainable Products & Innovation

  • SpeediCath® Flex catheter

Reporting Period: 2017-10 to 2018-09

Environmental Metrics

Total Carbon Emissions:213,900 tCO2e
Scope 1 Emissions:10,700 tCO2e
Scope 2 Emissions:16,600 tCO2e
Scope 3 Emissions:186,600 tCO2e
Renewable Energy Share:50%
Total Energy Consumption:157,999 MWh
Water Consumption:258,171 m3
Waste Generated:13,770 tons

ESG Focus Areas

  • Empowering people
  • Acting respectfully
  • Minimising our footprint

Environmental Achievements

  • Reduced greenhouse gas emissions per product by 50% over the last ten years
  • Achieved 50% renewable electricity consumption at all sites by the end of 2018

Social Achievements

  • Launched Coloplast Care program, reducing 30-day ostomy re-admissions by 30% and emergency room visits by 45% in the US
  • Trained 99% of white-collar employees in the Code of Conduct
  • Maintained an equal distribution between men and women in management (41% female managers)

Governance Achievements

  • Updated Coloplast BEST (Code of Conduct) to ensure compliance with updated regulation and industry codes
  • Achieved equal gender representation in the Board of Directors (2 out of 6 women)

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Achieve 100% renewable electricity by 2019
  • Reduce air transportation of goods to 3%
Short-term Goals:
  • Reduce injuries by 33% by 2020 compared to 2016/17 levels
  • Increase recycling rate of production waste to 35% by 2020

Environmental Challenges

  • Climate change and plastic waste
  • Reducing occupational injury rate to 3.0 by 2020 (33% reduction from 2016/17 levels)
  • Underrepresentation of women in top management
  • Goods transported by air exceeding target (10.7% instead of 2.3%)
Mitigation Strategies
  • Committed to using 100% renewable electricity at all sites by 2019
  • Implemented a set of safety behaviours globally and made revisions to the Code of Conduct
  • Implemented many projects to create a more inclusive leadership culture, including challenging unconscious biases
  • Working towards reducing air transportation of goods to 3% long-term

Supply Chain Management

Supplier Audits: 100% of suppliers within scope audited; 3 social audits performed in 2017/18

Responsible Procurement
  • Screening potential suppliers for compliance with UN Global Compact principles and Coloplast’s Code of Conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4 (for content and quality, not specific disclosures), UN Global Compact, UK Modern Slavery Act

Certifications: ISO 9001, ISO 13485, OHSAS 18001, ISO 14001 (9 out of 9 production sites)

Third-party Assurance: PricewaterhouseCoopers (limited assurance on selected data)

UN Sustainable Development Goals

  • SDG 3 (Good Health and Well-being)
  • SDG 7 (Affordable and Clean Energy)
  • SDG 8 (Decent Work and Economic Growth)
  • SDG 12 (Responsible Consumption and Production)
  • SDG 13 (Climate Action)

Coloplast's initiatives contribute to these goals through product innovation, renewable energy use, ethical labor practices, sustainable material consumption, and climate action.

Reporting Period: 2019-10 to 2020-09

Environmental Metrics

Total Carbon Emissions:170,800 tCO2e/year (Scope 1+2) + 159,700 tCO2e/year (Scope 3)
Scope 1 Emissions:11,100 tCO2e/year
Scope 2 Emissions:28,600 tCO2e/year
Scope 3 Emissions:159,700 tCO2e/year
Renewable Energy Share:100% (electricity)
Total Energy Consumption:162,340 MWh/year
Water Consumption:248,709 m3/year
Waste Generated:15,097 tons/year

ESG Focus Areas

  • Climate Action
  • Responsible Consumption and Production
  • Good Health and Well-being
  • Gender Equality
  • Reduced Inequalities
  • Peace, justice and strong institutions
  • Decent work and economic growth

Environmental Achievements

  • 100% of electricity use in production matched with renewable sources
  • 41% of production waste recycled
  • Reduced waste generated per product for the third consecutive year

Social Achievements

  • 44% reduction of injuries with absence since 2016/17
  • Decreased voluntary employee turnover from around 13% to 8.2%
  • Employee engagement score of 7.9 out of 10

Governance Achievements

  • 98% of white-collar employees trained in Code of Conduct
  • Two product recalls in 2019/20

Climate Goals & Targets

Long-term Goals:
  • 100% electric company cars by 2030
Medium-term Goals:
  • 100% renewable energy by 2025
  • 75% share of diverse teams by 2025
  • 30% representation of female senior leaders by 2025
Short-term Goals:
  • Reduce LTI rate to 2.0 ppm by 2025
  • Increase recycling rate of production waste to 50% by 2025
  • 80% of packaging to consist of renewable materials by 2025
  • 90% of packaging recyclable by 2025
  • 50% electric company cars by 2025
  • 10% reduction and then freeze of air travels by 2025
  • 5% limit on air freight by 2025

Environmental Challenges

  • Making absolute reductions of emissions while being a growth company
  • Addressing the challenge of plastic use in products and packaging while maintaining product safety and clinical performance
  • Potential long-term exposures to physical and transitional climate change risks within the supply chain and manufacturing
Mitigation Strategies
  • Phasing out the use of natural gas within the next five years to make production carbon neutral by 2025
  • Identifying and supporting the development of new sustainable technologies and integrating renewable materials such as bio-based or recycled plastics into products and packaging
  • Reducing business travel by 10% and converting 50% of company cars to electric vehicles
  • Limiting air freight to 5% of total shipped miles
  • Strengthening safety culture across all production sites to reduce workplace injuries
  • Implementing a system to manage integrity and compliance risks related to tier one distributors
  • Conducting bribery risk assessments and implementing local compliance programs

Supply Chain Management

Supplier Audits: 100% of raw material suppliers screened

Responsible Procurement
  • Supplier Code of Conduct integrating UN Global Compact principles
  • Standardized auditing in the approval process for new raw material suppliers

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events affecting supply chain and manufacturing
Transition Risks
  • Carbon taxes and market changes

Reporting Standards

Frameworks Used: GRI, UN Global Compact

Certifications: ISO 14001, ISO 45001, ISO 27001, ISO 9001, ISO 13485, MDSAP, MDD

Third-party Assurance: PricewaterhouseCoopers

UN Sustainable Development Goals

  • SDG 3
  • SDG 12
  • SDG 13
  • SDG 4
  • SDG 5
  • SDG 10
  • SDG 16
  • SDG 8

Coloplast's main contributions are on ‘Good Health and Well-being’, ‘Responsible consumption and production’, and ‘Climate Action’ (SDGs 3, 12 and 13). Other SDGs are addressed through various initiatives related to education, gender equality, reduced inequalities, peace, justice, decent work, and economic growth.

Sustainable Products & Innovation

  • Updated version of SpeediCath® Flex with new packaging containing no aluminum

Reporting Period: 2020-2021

Environmental Metrics

Total Carbon Emissions:176,900 Tonnes CO2e
Scope 1 Emissions:23,100 tCO2e
Scope 2 Emissions:29,200 tCO2e
Scope 3 Emissions:153,800 tCO2e
Renewable Energy Share:67%
Total Energy Consumption:167,704 MWh
Water Consumption:266,521 m3
Waste Generated:14,678 tons
Carbon Intensity:1.2 Tonnes CO2e/DKKm

ESG Focus Areas

  • Improving products and packaging
  • Reducing emissions
  • Responsible operations

Environmental Achievements

  • 58% of production waste recycled (improved from 41% in 2019/20)
  • 10% reduction of scope 3 emissions per product compared to the base year 2018/19

Social Achievements

  • 99% of white-collar employees trained in Code of Conduct 2.0
  • Lost Time Injury frequency improved to 2.2 ppm from 2.5 ppm in 2019/20

Governance Achievements

  • Signed the Confederation of Danish Industry’s Gender Diversity Pledge

Climate Goals & Targets

Long-term Goals:
  • Net-zero scope 1 & 2 emissions by 2025
  • 100% renewable energy by 2025
  • 100% electric company cars by 2030
  • 40/60 gender distribution in management and board of directors by 2030
Medium-term Goals:
  • 50% scope 3 emission reduction per product by 2030
Short-term Goals:
  • Reduce LTI frequency to 2.0 ppm by 2025
  • 75% waste recycling rate by 2025
  • 90% recyclable packaging by 2025
  • 80% packaging consisting of renewable materials by 2025
  • 10% reduction of air travel vs. 2018/19 and then freeze by 2025
  • 5% limit on goods transported by air by 2025
  • 50% electric company cars by 2025

Environmental Challenges

  • Plastic waste
  • Climate change
  • Supply chain disruptions
  • Transition to a circular economy
  • Potential development in climate-related policy and regulation
Mitigation Strategies
  • Partnership in Hungary for recycling production waste
  • Dialogue with renewable energy suppliers
  • Project to install solar panels in the US
  • New site in Costa Rica using 100% renewable electricity
  • Supplier Sustainability Program
  • Investing up to DKK 250 million on more sustainable solutions

Supply Chain Management

Supplier Audits: All new suppliers based in high-risk countries audited; high-risk suppliers evaluated at least every third year

Responsible Procurement
  • Supplier Code of Conduct
  • UN Global Compact principles integrated into procurement decisions
  • Supplier Sustainability Program

Climate-Related Risks & Opportunities

Physical Risks
  • Rising sea water levels at Coloplast facilities
  • Extreme weather patterns affecting supply chains
Transition Risks
  • Demand for more sustainable products and packaging
  • Further legal requirements with focus on ESG for supply chain
  • Potential development in climate-related policy and regulation
Opportunities
  • Investing in and utilizing new technology to transition innovation
  • Improving products and packaging
  • Reducing emissions

Reporting Standards

Frameworks Used: UN Global Compact, TCFD

Certifications: ISO 14001, ISO 45001, ISO 9001, ISO 13485, MDSAP, EU MDR

Third-party Assurance: PricewaterhouseCoopers

UN Sustainable Development Goals

  • Goal 12
  • Goal 13
  • Goal 8
  • Goal 5
  • Goal 10
  • Goal 16

Initiatives contribute to these goals as detailed throughout the report

Sustainable Products & Innovation

  • Heylo Digital Ostomy notification tool

Reporting Period: 2021-10 to 2022-09

Environmental Metrics

Total Carbon Emissions:181,600 tCO2e/year
Renewable Energy Share:72%

ESG Focus Areas

  • Climate Change
  • Inclusion and Diversity
  • Responsible Operations

Environmental Achievements

  • Reduced scope 1 and 2 emissions by 8% since the base year 2018/19
  • Reduced scope 3 emissions by 9% per product since the base year 2018/19
  • Increased renewable energy use to 72%, from 67% last year
  • Signed the first Power Purchasing Agreement which secures new green power for Coloplast’s electricity consumption in Denmark
  • 71% of production waste is recycled, improved from 58% in 2020/21

Social Achievements

  • Welcomed more than 250,000 new users to our patient support programme, Coloplast® Care
  • Voluntary turnover level in 2021/22 was on par with last year.
  • Employee engagement score of 8.2 in 2021/22 (above industry benchmark)
  • 45% of all managers are female (2021/22)
  • Share of diverse teams increased from 50% to 55%

Governance Achievements

  • 100% white-collar employees trained in Code of Conduct 2.0
  • Obtained MDR certificates for the first 15 product groups (representing around 75% of Coloplast revenue)
  • Atos Medical integration is progressing according to plan

Climate Goals & Targets

Long-term Goals:
  • 100% electric company cars by 2030
Medium-term Goals:
  • 100% renewable energy by 2025
  • 40/60 gender distribution in management and on the Board of Directors by 2030
  • 100% reduction of scope 1 & 2 emissions by 2030
  • 50% per-product reduction of scope 3 emissions by 2030
Short-term Goals:
  • 90% recyclable packaging and 80% packaging consisting of renewable materials by 2025
  • 50% electric company cars by 2025
  • Lost-time injury frequency of 2.0 ppm by 2025
  • 75% diverse teams by 2025

Environmental Challenges

  • Inflationary pressure on energy prices in Hungary and raw material prices
  • Limited ability to pass on inflationary pressure due to reimbursed categories
  • COVID-19 impact in China
  • Supply chain disruptions
  • Increased legal and consultancy costs related to transvaginal surgical mesh product lawsuits
Mitigation Strategies
  • Prudent management of operating costs
  • Continued efficiency improvements through Global Operations Plan 5
  • Built up additional inventory as a contingency for potential fluctuations in demand or supply chain disruptions
  • Making settlement progress on unresolved MDL cases

Supply Chain Management

Supplier Audits: 50 of our top-emitting raw material suppliers surveyed in 2021/22

Responsible Procurement
  • Supplier Sustainability Programme
  • Integrated climate impact assessment into product innovation process

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather patterns affecting supply chain
Transition Risks
  • Increased demand for sustainable products and packaging
  • Increased legal and compliance requirements with focus on ESG in our supply chain

Reporting Standards

Frameworks Used: UN Global Compact, Task Force on Climate-Related Financial Disclosures (TCFD)

Certifications: ISO 27001

UN Sustainable Development Goals

  • SDG 3 (Good Health and Well-being)
  • SDG 12 (Responsible Consumption and Production)
  • SDG 13 (Climate Action)

Coloplast's mission, products, and sustainability initiatives contribute to these goals.

Sustainable Products & Innovation

  • Heylo™ (digital leakage platform)
  • Luja™ (new catheter platform)
  • Provox® Life™ portfolio

Reporting Period: 2022-10 to 2023-09

Environmental Metrics

Total Carbon Emissions:197,000 tCO2e/year
Scope 1 Emissions:21,200 tCO2e/year
Scope 2 Emissions:32,200 tCO2e/year
Scope 3 Emissions:143,600 tCO2e/year
Renewable Energy Share:78%
Total Energy Consumption:167,875 MWh/year
Water Consumption:261,925 m3/year
Waste Generated:15,410 tons/year
Carbon Intensity:0.9 tonnes CO2e/DKK million revenue

ESG Focus Areas

  • Improving products and packaging
  • Reducing emissions
  • Responsible operations
  • Climate action
  • Gender equality
  • Sustainable material consumption
  • Protection of human rights
  • Responsible sourcing of products
  • Business ethics and compliance

Environmental Achievements

  • Reduced scope 1 and 2 emissions by 10% compared to the 2018/19 base year (15% excluding Atos Medical)
  • Increased waste recycling rate to 75%
  • 78% of energy consumption from renewable sources

Social Achievements

  • More than 260,000 new users enrolled in Coloplast Care
  • Employee engagement score of 8.1 out of 10, above industry benchmark
  • 54% share of diverse teams
  • 26% share of senior female leaders

Governance Achievements

  • Completed an equity capital raise
  • 99% of white-collar employees trained in Code of Conduct
  • Established a new holding company to secure long-term ownership

Climate Goals & Targets

Long-term Goals:
  • Create or improve access to better care for another one million new users
Medium-term Goals:
  • Reduce gearing ratio to between 1x-2x EBITDA by 2024/25
  • Achieve 2.0 ppm Lost Time Injury frequency by 2025
  • Achieve 40% representation of female senior leaders by 2030
  • Achieve 75% share of diverse teams by 2025
Short-term Goals:
  • Increase recyclable packaging to 90% by 2025
  • Increase renewable materials in packaging to 80% by 2025
  • Reduce scope 1 and 2 emissions by 100% by 2030
  • Achieve 100% renewable energy by 2025
  • Achieve 100% electric company cars by 2030
  • Reduce scope 3 emissions by 50% per product by 2030
  • Reduce air travel by 10% by 2025 and then freeze
  • Limit goods transported by air to 5%

Environmental Challenges

  • Inflationary headwinds on input costs
  • Increased operating expenses
  • Negative impact from currencies
  • Tragic fatality of an employee
  • Long lead times for electric cars
  • Slower development of charging networks than anticipated
  • Impact from COVID-19 and weakened consumer sentiment in China
Mitigation Strategies
  • Pricing benefit, leverage on fixed costs and efficiency gains from Global Operations Plan 5
  • Prudent management of operating expenses
  • Updated instructions, additional training and increased supervision
  • Learnings from the fatal accident shared across sites
  • Implementing additional safety instructions globally
  • Accelerating efforts to reach 100% electric company cars by 2030
  • Initiatives to reduce costs and enforce prudent management of operating costs
  • Global Operations Plan 6 to support continued growth and profitability

Supply Chain Management

Supplier Audits: 12 audits of tier 1 and 2 suppliers in China and Pakistan in 2022/23

Responsible Procurement
  • Supplier Code of Conduct
  • Global Distributor Code of Conduct
  • Climate ambition statement to top 100 emitting suppliers

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather patterns
  • Rising sea water levels affecting supply chain
Transition Risks
  • Increased demand for sustainable products and packaging
  • Increased legal and compliance requirements
Opportunities
  • Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI, Danish Financial Statements Act, EU non-financial reporting directive, TCFD

Certifications: ISO 14001, ISO 45001, ISO 13485, ISO 27001

Third-party Assurance: PricewaterhouseCoopers

UN Sustainable Development Goals

  • SDG 3
  • SDG 12
  • SDG 13
  • SDG 5
  • SDG 8
  • SDG 10

Aligned with UN Sustainable Development Goals through mission, business model, and strategic focus areas

Sustainable Products & Innovation

  • Heylo™ (digital ostomy leakage platform)
  • Lujatm (intermittent catheter)
  • Products based on fish skin (Kerecis)

Awards & Recognition

  • One of the Top 25 Companies to work for in Denmark