Climate Change Data

Environmental Metrics

ESG Focus Areas

• Waste minimisation
• Improving health and wellbeing
• Best practice corporate governance
• Understanding climate related risks and taking action
• Supporting and developing our people
• Ethical and sustainable value chains

Environmental Achievements

• 99% of packaging waste in our warehouses diverted from landfill
• 98.7% of our packaging is designed to be recoverable at end of life

Social Achievements

• Launched initiatives with Chemist Warehouse to raise money for women’s and men’s mental health charities, contributing a total of A$20,000
• Donated hand sanitiser to Northshore communities after Auckland floods
• Staff turnover of 12%
• 66% women and 34% men in the workforce

Governance Achievements

• Introduced a Supplier Code of Conduct
• Introduced a Modern Slavery Policy
• No product recalls
• No reports of bribery or corruption

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions
• Delays in obtaining US regulatory approval for Maxigesic IV®

Mitigation Strategies

• Maintaining higher inventory levels to manage supply chain disruptions
• Investing in sales and marketing to capitalize on growth opportunities (including a new sales force in Australia)

Supply Chain Management

Supplier Audits: 90%+ of our suppliers attested to compliance with our Modern Slavery Policy

Responsible Procurement

• Supplier Code of Conduct
• Modern Slavery Policy

Climate-Related Risks & Opportunities

UN Sustainable Development Goals

• Good Health and Wellbeing
• Gender Equality
• Decent Work and Economic Growth
• Reduced Inequalities
• Responsible Production and Consumption
• Climate Action

At AFT we believe we can meaningfully contribute to the six of the goals.

Environmental Metrics

ESG Focus Areas

• Working to improve health and well-being
• Best practice corporate governance
• Ethical and sustainable value chains
• Supporting and developing our people
• Understanding our climate risks and taking action
• Waste minimisation

Environmental Achievements

• Assessed our carbon footprint against the new Aotearoa New Zealand Climate standards and further evolved our sustainability strategy
• Completed our first climate risk assessment, and our first disclosure required under the Aotearoa New Zealand Climate Standards
• Measured our greenhouse gas (GHG) emissions, identified the physical and transitional impacts of climate change and the material risks and opportunities to our business
• Established science-aligned targets for our Scope 1 and 2 emissions, consistent with limiting global warming to 1.5 degrees Celsius

Social Achievements

• Launched our products in 12 new countries taking the total to 73
• Launched Maxigesic IV® and now poised to launch Maxigesic Rapid® in the US
• Gained regulatory approval to sell antiseptic Crystaderm® in China’s domestic market
• Established new business hubs in the UK, Canada, and the US
• Contributed to causes and people that promote the health and wellbeing in the communities in which we operate
• Worked with Chemist Warehouse to raise $500,000 for charities sponsored by New Zealand Super Rugby Franchises
• Supported the August 2023 Wesleyan Medicine Mission to Bougainville

Governance Achievements

• Continued to advance AFT’s governance and sustainability framework
• Reviewed our assessment of the material sustainability risks to the business and engaged with internal and external stakeholders to review our approach
• Andrew Lane joined the Board as a new Independent Director

Climate Goals & Targets

Environmental Challenges

• Slower than expected Australian sales from newly launched products
• Short-term reduction of margins in Australasia due to some overstocking and subsequent price discounting of some key high margin lines, stronger sales of lower margin products plus some stock write offs including some one off’s dating back to the pandemic
• Ongoing shipping disruptions
• Increased climate reporting requirements
• Changing supplier contracts/tender requirements to include sustainability

Mitigation Strategies

• Accelerated investment into important growth projects utilizing proceeds of the Maxigesic IV milestone payment
• Prioritised growth investments over debt reduction
• Engaged external experts to provide climate knowledge-building across the whole Board
• Presentation of AFT’s ESG framework

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• Modern Slavery Policy

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events interrupting manufacturing and distribution

Transition Risks

• Increased climate reporting requirements
• Changing supplier contracts
• Transition to lower emissions technology
• Misalignment of medical and climate regulations

Opportunities

• Increased demand due to weather events
• New opportunities due to increased pollution and vector-borne diseases
• Ability to operate in environments with fewer competitors
• Access to supportive policy incentives
• First-mover advantage
• New emerging markets
• Ability to meet carbon targets
• Reduction in operational expenditure
• More efficient manufacturing and distribution
• Ability to access new finance streams

Reporting Standards

Frameworks Used: Aotearoa New Zealand Climate Standards

Third-party Assurance: Toitū Envirocare

UN Sustainable Development Goals

• Good Health and Well-being
• Gender Equality
• Decent Work and Economic Growth
• Reduced Inequalities
• Responsible Production and Consumption
• Climate Action

AFT's initiatives contribute to these goals through product development, ethical business practices, workforce diversity, climate action, and sustainable supply chains.