Climate Change Data

Environmental Metrics

ESG Focus Areas

• Economic
• Environmental
• Human Rights
• Labor
• Society
• Product Responsibility

Environmental Achievements

• Reduced CO2 emissions slightly despite increased production volume. Decreased heating needs due to climatic variations.
• Decreased water consumption despite production growth.

Social Achievements

• Reduced employee turnover to 13% from a higher rate in 2013.
• No workplace fatalities or serious accidents reported.
• Extended internal development and training program with focus on leadership, coaching and selling skills.

Governance Achievements

• No violations of the Code of Conduct reported.
• Successful maintenance of Quality and Environmental Management Systems certifications.

Climate Goals & Targets

Environmental Challenges

• Swiss National Bank's decision to remove the minimum exchange rate for the Euro caused the Swiss franc to soar, impacting business.

Mitigation Strategies

• Rapidly implemented measures to reduce the Swiss cost base.

Supply Chain Management

Responsible Procurement

• Code of Conduct for Suppliers addressing working conditions, human rights, business ethics, legal compliance, and environmental protection.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G3

Sustainable Products & Innovation

• PURE ceramic implants

Environmental Metrics

ESG Focus Areas

• Patient health and safety
• Customer satisfaction
• Economic performance
• Provision of approved products and services
• Traceability and labelling
• Training and education
• Staff turnover
• Diversity, equal opportunity, non-discrimination
• Compliance, responsible marketing, anti-corruption
• Emissions
• Materials use
• Energy use
• Water use
• Waste

Environmental Achievements

• Reduced paper consumption and waste through the manufacturing execution system (MES)
• Installation of meters on high-consumption machinery and LED lighting in Villeret, saving >85,000 kWh annually
• Insulation of production facility in Arlington, reducing air conditioning energy consumption by >60%
• Increased titanium recycling

Social Achievements

• Added more than 1000 employees, bringing total headcount to 4881
• Continued cultural journey and initiatives to foster constructive behavior, collaborative leadership, and high performance
• Extended training program to China and Latin America
• Improved results in staff survey regarding feedback from superiors, development opportunities, teamwork, and company culture
• Intensified Women in Dentistry initiative

Governance Achievements

• One Code of Conduct violation reported, leading to dismissal
• Two claims of discrimination made
• No workplace fatalities or serious accidents reported

Climate Goals & Targets

Environmental Challenges

• Rapid expansion of the organization impacting staff training program participation
• Availability and effective use of resources
• Empowerment of middle management
• Further education/development opportunities
• Workload management
• High staff turnover (12%)
• Managing volume growth and integrating a large number of new products in logistics
• Increased raw material and energy consumption due to significant volume growth
• Increased refuse due to packaging materials from new machinery, office refurbishing, and clearance of old materials

Mitigation Strategies

• Intention to extend training program to all employees over time
• Strategic Management team to identify and implement actions to address challenges
• Continued process improvements and capacity expansion in logistics
• Addition of an efficient drop-shipment process in logistics
• Initiatives to reduce paper consumption and waste
• Installation of meters on high-consumption machinery and LED lighting in Villeret
• Insulation of production facility in Arlington

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct specifying expectations concerning environmental protection, social, and legal requirements

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14001

Environmental Metrics

ESG Focus Areas

• Patient health and safety
• Customer satisfaction
• Employee health and safety
• Colleague engagement
• Inclusion
• Training and education
• GHG emissions
• Supplier human rights and environmental assessment
• Business ethics

Environmental Achievements

• Greenhouse gas emissions down by 2%
• Titanium consumption down by 3%
• Overall waste down by 5%
• Improved CDP Climate Change score from C to B-

Social Achievements

• High staff engagement score (78, 4 points above global benchmark)
• Continued support for approximately 20 charitable projects
• Launched #TogetherStrong initiative to support dental community during the pandemic

Governance Achievements

• Continued compliance with Swiss Ordinance against Excessive Compensation (OaEC)
• Established a multilingual compliance hotline
• Conducted annual staff survey (weEngage) to assess employee engagement and identify areas for improvement

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic significantly impacted dental practices globally, leading to a sharp decline in sales
• Supply chain disruptions due to the pandemic
• Economic uncertainty and reduced consumer confidence

Mitigation Strategies

• #TogetherStrong initiative to support customers and employees
• Rapid cost reduction measures, including reduced working hours and workforce reduction
• Secured liquidity through bond issuances and credit lines
• Accelerated digitalization efforts to maintain customer engagement and sales
• Continued investment in innovation and R&D

Supply Chain Management

Responsible Procurement

• Code of Conduct for external business partners
• Multiple source strategy for key materials

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 13485, ISO 14001

Environmental Metrics

ESG Focus Areas

• Advancing oral care
• Empowering people
• Caring for the planet and society
• Acting with responsibility

Environmental Achievements

• Increased renewable energy share to 69% from 65% in 2020
• Avoided approximately 660 tons of greenhouse gas emissions through various initiatives
• Achieved a 57% waste recycling rate and 26% landfill rate
• Reduced water consumption per employee by 28%

Social Achievements

• Increased employee engagement score to 80 (top 25% globally)
• 74% of colleagues reported good opportunities to learn and grow
• Launched a global mentorship program for women in leadership
• Supported over 30 community projects worldwide
• No workplace-related fatalities and 0% absence rate due to workplace accidents

Governance Achievements

• Established a new customer feedback program
• Implemented a new global recruitment technology platform
• Rolled out sales compliance e-training in ten countries (92% completion rate)
• No FDA mandated recalls, Medwatch Safety Alerts, or FDA enforcement actions or fatality reports for Straumann Group products in 2021
• Implemented a Security Information Event Management System (SIEM) with a 24/7 Security Operations Center

Climate Goals & Targets

Environmental Challenges

• Increased absolute energy consumption and greenhouse gas emissions due to the inclusion of additional sites and data categories
• Increased raw and operating materials, water consumption, and waste compared to 2020
• Supply chain disruptions due to delays in machine and material deliveries
• Two incidents of discrimination reported

Mitigation Strategies

• Joined the Science Based Targets initiative (SBTi) to reduce emissions in line with climate science
• Extended and optimized environmental data collection process
• Implemented a new approach for forecasting and orchestrating future demand
• Standardized production management systems to improve business continuity
• Took corrective actions for discrimination incidents

Supply Chain Management

Responsible Procurement

• Multiple source strategy for key materials
• Long-term supply agreements
• Redundant manufacturing locations
• ExBP Code of Conduct requiring compliance with laws, ethical practices, fair working conditions, environmental protection, and data privacy

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core option, SASB

Certifications: ISO 13485, ISO 14001 (at three principal manufacturing sites), MDSAP (at several sites)

UN Sustainable Development Goals

• Goal 3: Good Health and Well-being
• Goal 4: Quality Education
• Goal 7: Affordable and Clean Energy
• Goal 8: Decent Work and Economic Growth
• Goal 9: Industry, Innovation and Infrastructure
• Goal 10: Reduced Inequalities
• Goal 12: Responsible Consumption and Production
• Goal 13: Climate Action
• Goal 17: Partnerships for the Goals

The report details how Straumann's initiatives contribute to these goals through advancing oral care, empowering people, caring for the planet, and acting responsibly.

Environmental Metrics

ESG Focus Areas

• Advancing oral care
• Empowering people
• Caring for the planet and society
• Acting with responsibility

Environmental Achievements

• Increased renewable energy share from 69% to 80%
• Reduced GHG emissions from own operations by 12%
• Reduced landfill rate from 26% to 6%
• Improved total recycling rate from 57% to 64%
• Achieved zero waste to landfill status at Andover site (US)

Social Achievements

• 91% response rate in employee engagement survey, with an 81 engagement score (top 25% globally)
• 76% of colleagues reported good opportunities to learn and grow
• 39% female representation in leadership positions
• Launched global mentorship program
• Expanded educational activities in low- and middle-income countries

Governance Achievements

• Established a new customer feedback program
• Implemented a global compliance e-training program with high completion rates
• Launched a supplier portal to improve supply chain sustainability and compliance
• Zero losses as a result of legal proceedings associated with bribery or corruption (excluding a fine for antitrust violation)

Climate Goals & Targets

Environmental Challenges

• Cybersecurity risks associated with increased digitalization
• Volume-based procurement (VBP) in China impacting prices
• Increasing personnel expenses due to inflation and talent attraction challenges
• Increasing raw material and energy costs
• Supply chain disruptions due to geopolitical events

Mitigation Strategies

• Strengthened cybersecurity efforts and strategy
• Successfully navigated the VBP process in China
• Introduced an inflation task force to monitor and address cost increases
• Implemented multiple sourcing strategies and long-term supply agreements
• Upgraded digital production system to improve supply network efficiency

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Group Code of Conduct for External Business Partners
• Supplier portal for sustainability and compliance screening

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards, SASB metrics

Certifications: ISO 13485, ISO 14001 (at three principal manufacturing sites), MDSAP (at several sites)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 3 (Good Health and Well-being)
• Goal 8 (Decent Work and Economic Growth)
• Goal 9 (Industry, Innovation, and Infrastructure)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)

Initiatives contributing to improved oral health, sustainable business practices, innovation, resource efficiency, and climate change mitigation

Sustainable Products & Innovation

• Grass cardboard packaging

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate change
• Resource use and circular economy
• Responsible and ethical supply chain management
• Community engagement

Environmental Achievements

• Reduced GHG emissions from own operations (scopes 1 and 2) by 14% compared to 2022.
• Increased renewable energy share to 69% in 2023 (20% increase from 2022).
• Waste recycling rate increased from 64% to 68%.
• Water reuse increased by 79%.

Social Achievements

• Launched Smile to Life fund in Shanghai to improve access to dental treatment for the elderly.
• Supported over 60 projects across 30 countries through the Access to Implant Dentistry (AID) program.
• Provided free dental implant treatment to edentulous patients through the LetThemShine initiative.
• Partnered with various organizations to provide dental care and education in underserved communities globally.

Governance Achievements

• Undertook a TCFD assessment in 2023 and developed a TCFD roadmap.
• Consistently reported climate-related information to CDP since 2010.
• Established a science-based net-zero GHG emissions reduction target, validated by SBTi in 2023.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to raw material supply tensions (titanium) and pent-up demand from China.
• Increased scope 3 emissions due to sustained business growth.
• Inherent uncertainties in scope 3 GHG accounting.
• Potential for increasing energy costs due to increasing energy demand and carbon taxation.

Mitigation Strategies

• Implemented multiple-source strategy for critical raw materials.
• Mutualized materials across the Group to navigate supply disruptions.
• Transitioning to 100% renewable electricity by 2024.
• Enhancing electricity efficiency through infrastructure upgrades and production process optimization.
• Implementing sustainable procurement initiatives.
• Collaborating with logistics providers to implement efficiency measures and transition to biofuels and electric vehicles.
• Improving data quality for accurate emissions assessment.
• Tracking supplier emissions via a tailored supplier sustainability and compliance management platform.

Supply Chain Management

Supplier Audits: Over 1400 suppliers invited to ESG platform by December 2023 (70% of global spend); over 500 completed assessment (40% of global spend).

Responsible Procurement

• Straumann Group Code of Conduct for External Business Partners (ExBP CoC)
• Supplier sustainability and compliance management platform
• Sustainable procurement initiatives for capital goods and purchased goods and services

Climate-Related Risks & Opportunities

Physical Risks

• River flooding, extreme rainfall, heat (Europe); water stress, drought, wildfires, extreme heat (Americas)

Transition Risks

• Increasing energy costs, pass-through decarbonization costs from suppliers

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: TCFD, CSRD

Certifications: ISO 14001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Sustainable toothbrush initiative (using recycled plastic waste)

Awards & Recognition

• Not disclosed