Climate Change Data

BioGaia AB (publ.)

Climate Impact & Sustainability Data (2023)

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:7162 tCO2e/year (2023)
Scope 1 Emissions:77 tCO2e/year (2023)
Scope 2 Emissions:32 tCO2e/year (2023)
Scope 3 Emissions:7162 tCO2e/year (2023)
Renewable Energy Share:100% (for all premises in Sweden, Japan, and USA)

ESG Focus Areas

  • Healthy products
  • Healthy business
  • Healthy planet

Environmental Achievements

  • Achieved science-based climate target for Scope 1 and 2 emissions for the second consecutive year by purchasing 100% renewable electricity; reduced emissions by 59% compared to 2019.
  • All paper packaging at BioGaia Production from certified sustainable forestry.
  • Developed palm oil-free alternatives for all products; 30% of drops and 66% of tablets sold were palm oil-free.
  • BioGaia’s operations in Gothenburg awarded My Green Lab certification (highest level).

Social Achievements

  • EcoVadis awarded BioGaia a gold medal, placing them in the top 2% of the industry.
  • Employee turnover decreased to 8.85% from 9.7% in 2022 and 11.3% in 2021.
  • Continued investment in the Climate Transformation Fund.
  • Supported Children’s Mission Philippines with a donation of SEK 425,000.
  • Supported Panzi Hospital in the Democratic Republic of Congo with a donation of SEK 100,000.
  • Expanded BioGaia Academy educational initiatives.

Governance Achievements

  • Established sustainability targets for all material topics.
  • Completed annual anti-corruption training for all employees.
  • Revised and updated most of BioGaia’s policies, including a new Corporate Governance Policy and Employee Policy.
  • Implemented a Purchasing Policy to ensure sustainable procurement.
  • All employees in the Parent Company completed anti-corruption training.

Climate Goals & Targets

Long-term Goals:
  • Achieve an operating margin of at least 34% while maintaining strong growth.
Medium-term Goals:
  • Reduce Scope 1 & 2 emissions by 46% by 2030 from 2019 levels.
  • Establish a science-based supplier engagement target for Scope 3 emissions by 2024.
  • Reduce relative climate emissions per sales volume from business travel by 30% compared to 2019 by 2025.
  • Only use recyclable or biodegradable packaging by 2030.
Short-term Goals:
  • 100% of suppliers affecting product quality to have third-party certified quality management systems by 2024.
  • Complete evaluation of BioGaia’s products’ effect on quality of life in infantile colic by 2024.
  • 100% of BioGaia employees to complete training in the company’s Code of Conduct and policies by 2025.
  • All BioGaia products to be palm oil-free by 2025.
  • All paper packaging to be certified from responsibly managed forests or made of verified recycled materials by 2025.

Environmental Challenges

  • Decline in EMEA sales due to termination of distribution agreement with Nóos S.r.l. and subsequent product availability issues in Italy.
  • Rising competition in online sales leading to higher customer acquisition costs.
  • Limited consumer awareness of probiotics’ positive effects on oral health.
  • Challenges in phasing out palm oil due to varying laws and regulations across markets.
  • Managing climate-related risks such as extreme weather events and regulatory changes.
Mitigation Strategies
  • Securing product availability in Italy through a previous sub-distributor; arbitration proceedings underway.
  • Data-driven decisions to improve the customer journey (e.g., expanding subscription service, encouraging trial of broader product range, optimizing online shopping platform).
  • Launching a “Learning Lab” on the US consumer website to educate consumers about probiotics.
  • Developing palm oil-free alternatives for all products and rolling out globally.
  • Implementing a science-based climate target to reduce Scope 1 and 2 emissions by 46% by 2030 and actively working to reduce Scope 3 emissions.

Supply Chain Management

Supplier Audits: Audits carried out on site at one contract manufacturer, three contract laboratories and one contract warehouse in 2023; 75% of BioGaia AB’s suppliers of input materials provided evidence of a third-party sustainability audit.

Responsible Procurement
  • Supplier Code of Conduct
  • Purchasing Policy
  • Requirement for third-party sustainability audits for prioritized suppliers

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events
  • Damage to infrastructure
Transition Risks
  • Regulatory changes
  • Market shifts
Opportunities
  • Increased demand for sustainable products
  • Cost savings from emission reduction

Reporting Standards

Frameworks Used: GRI, UN Global Compact, ISO 26000

Certifications: EcoVadis Gold Medal, My Green Lab Green Certification (Gothenburg operations)

Third-party Assurance: Deloitte AB (examined, not limited review)

Sustainable Products & Innovation

  • Aldermis (probiotic skin ointment)
  • Palm oil-free product formulations

Awards & Recognition

  • EcoVadis Gold Medal
  • My Green Lab Green Certification