Climate Change Data

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Significant decrease of parallel import and price cuts set by Swedish authorities (in Q4’14 and Q2’15) and campaign discounts given due to tight competition

Mitigation Strategies

• Good cost control

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Society
• People
• Planet

Environmental Achievements

• Renewable energy utilization increased to 92% (from 77% in 2019) due to Mankkaa property switching to renewable district heating.
• Recycling rate increased from 71% to 74%.

Social Achievements

• Employee engagement index was 78 (77 in 2019).
• Employee turnover was 10.2% (9.2% in 2019).
• COVID-19 antibody testing was initiated, with over 70,000 citizens tested by year-end.
• Over 3500 employees completed Code of Conduct training.

Governance Achievements

• Compliance with Finnish Corporate Governance Code 2020 and chapter 7, section 7 of the Finnish Securities Markets Act.
• KPMG Oy Ab re-elected as auditor.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting healthcare services, pharmaceutical demand, and consumer behavior.
• Changes in pharmaceutical market regulation and licensing, pricing, parallel import, and public reimbursement.
• Increased competition in e-commerce.
• Decreasing share of single-channel distribution in public healthcare.
• Loss of several key pharmaceutical company agreements.
• Information security and transition risks related to climate change.
• Consumers' increasing demands for ethical, transparent, and environmentally sustainable products and services.

Mitigation Strategies

• Government compensations received in Sweden for social costs, sick leaves, and short-term layoffs.
• Contingency planning focusing on personnel health, workforce availability, safety in distribution centers and pharmacies, and pharmaceutical stocking.
• Active discussions with customers and authorities.
• Increased readiness and competencies related to remote work and remote customer meetings.
• Commitment to reducing CO2 emissions (selection criterion for transport partners).
• Evaluation of product sustainability in assortment decisions.
• Development of consumer-oriented health services in pharmacies.
• Development of Real World Evidence research in Finland.

Supply Chain Management

Supplier Audits: 232 out of 360 identified direct product suppliers benchmarked against Oriola’s Business Partner Code of Conduct by the end of 2020.

Responsible Procurement

• Oriola Business Partner Code of Conduct (covering bribery, corruption, discrimination, labor and human rights, occupational safety and health).

Climate-Related Risks & Opportunities

Transition Risks

• Changes in fossil fuel pricing
• Stricter environmental regulation

Opportunities

• Development of energy-efficient products and services

Reporting Standards

Frameworks Used: GRI (Global Reporting Initiative) core level (planned for Q2 2021), Nasdaq ESG Reporting Guide, UN Sustainable Development Goals, Global Compact principles

Certifications: ISO 14001 (Sweden)

Third-party Assurance: Third-party assurance (limited assurance) for environmental data

Sustainable Products & Innovation

• Private label pharmacy products meeting sustainability criteria (18% of range sustainably classified).

Awards & Recognition

• CDP's best leadership level with score A-

Environmental Metrics

ESG Focus Areas

• Society
• People
• Planet

Environmental Achievements

• Improved waste sorting and recycling in warehouses
• Shipped over 2,000 tonnes of reusable pallets back to suppliers in 2021
• Kronans Apotek collected hundreds of tonnes of pharmaceutical waste annually and delivered it for appropriate disposal

Social Achievements

• Launched an online sustainability training completed by over 2,200 employees
• Provided change management training for all managers and offered support for employees affected by the change
• Offered a wide range of voluntary health promotion services

Governance Achievements

• No corruption cases were reported.
• The Board of Directors monitors compliance with the Code of Conduct.
• Oriola's anti-corruption and non-discrimination principles are included in Oriola's Code of Conduct

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting operations and stakeholder concerns
• Data limitations in covering all workers for certain metrics (e.g., occupational health and safety)
• Data limitations in covering all workers for certain metrics (e.g., employee turnover)

Mitigation Strategies

• Ensured reliable pharmaceutical deliveries and kept pharmacies open during the pandemic
• Introduced safety stock services for Finland and Sweden
• Introduced protective equipment and practices to minimize staff encounters
• Developing calculation methods to cover other workers in future reporting

Supply Chain Management

Responsible Procurement

• Business Partner Code of Conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards (Core option)

Third-party Assurance: Mitopro Oy (limited assurance on environmental information)

UN Sustainable Development Goals

• SDG 3, 6, 8, 12, 13

Oriola's sustainability program is aligned with the UN Sustainable Development Goals.

Environmental Metrics

ESG Focus Areas

• Environment: Pursuing a net-zero impact on climate
• Social: Advancing a sustainable people journey
• Governance and society: Safeguarding deliveries for health and wellbeing

Environmental Achievements

• Reduced CO2 emissions in own operations by 73% compared to the base year 2019 (Scope 1 and 2)
• Reduced total Scope 3 emissions by 16% from the 2019 base year.
• 91% of Oriola’s total energy consumption comes from renewable or carbon-neutral sources.

Social Achievements

• Picking quality of ordered pharmaceuticals reached 99.8%
• Leadership index improved to 79 (2022: 78)
• Implemented a new commercial operating model focusing on collaboration across markets.

Governance Achievements

• 89% of key suppliers covered by Oriola’s Business Partner Code of Conduct
• Awarded a gold medal in the EcoVadis sustainability rating (top 5% globally)

Climate Goals & Targets

Environmental Challenges

• Loss of public tender contracts in Swedish dose dispensing business leading to market share loss and unprofitability.
• High inflation and rising interest rates impacting consumer confidence.
• Challenges in the availability of some pharmaceuticals across Europe.

Mitigation Strategies

• Sold the Swedish dose dispensing business (Svensk dos AB) to Apotekstjänst Sverige AB.
• Successfully managed inflationary pressure with strict cost control and price increases.
• Improved overall efficiency in operations, including transport and warehouse operations.

Supply Chain Management

Supplier Audits: 28 in Sweden (14 new), 10 in Finland (all new) in 2023

Responsible Procurement

• Business Partner Code of Conduct, standardized procurement principles, supplier selection and approval processes, sustainability requirements (including emissions reporting for transport partners), Good Distribution Practice requirements

Climate-Related Risks & Opportunities

Transition Risks

• Changes in fossil fuel pricing, stricter environmental regulations

Opportunities

• Development of energy-efficient products and services, increasing demand for sustainable service providers

Reporting Standards

Frameworks Used: GRI Universal Standards 2021

Certifications: ISO 14001, ISO 9001

Third-party Assurance: Ecobio Oy (limited assurance on environmental information)

UN Sustainable Development Goals

• SDG 3, SDG 8, SDG 12, SDG 13

Oriola's initiatives contribute to these goals through its focus on health and wellbeing, sustainable economic growth, sustainable consumption and production, and climate action.

Awards & Recognition

• Gold medal in EcoVadis sustainability rating