Getinge 2022 Annual Report slide image

Getinge 2022 Annual Report

Getinge 2022 Annual Report Introduction Strategy Corporate Governance Annual Report Sustainability Report Other information Contents RESPONSIBLE SOURCING AND SUPPLIER MANAGEMENT Commitment Getinge's primary commitment is to deliver value to customers, and this includes ensuring that suppliers live up to the high standards required of a supplier to the healthcare industry and to Getinge. The primary focus is to ensure patient safety and the quality of products and this focus is also expected of Getinge's suppliers. In the wake of increasing regulations and demands on acting ethically, reducing environmental impact and working to minimize risks to people, Getinge is committed to include the value chain in the company's sustainability ambitions. Progress 2022 Based on the commitment and understanding of actual and future requirements linked to environment, social and governance, Getinge is working at gradually integrating those expectations into its processes in a structured way. During 2022 steps have been taken to identify actual and potential impacts as well as assessing the significance of these impacts from a Tier 1 supplier perspective. These steps serve as the foundation for the company's continued work to manage or mitigate actual impacts. Getinge's goal is to fully adopt its processes to meet actual and future internal and external expectations. Management Approach The Business Partner Code of Conduct defines Getinge's ethical principles and requirements that stakeholders are expected to comply with when doing business with Getinge. The Business Partner Code of Conduct also applies to suppliers, partners, con- tractors and subcontractors. Setting clear expectations on ethical business and responsible leadership is a prerequisite for a sustain- able and fruitful collaboration. Because responsible leadership is about daily decisions it is critical that the Business Partner Code of Conduct is applied in reality, that compliance is monitored and continuous improvement undertaken. This monitoring is part of the auditing of suppliers and will be refined going forward. Managing impact and risk In many areas within sustainability, Getinge is dependent on business partners. The potential risks of the supply chain not living up to legislation or the Getinge Business Partner Code of Conduct makes it important to collaborate and to spread awareness of the expectation that Getinge has on its suppliers on ethics, social aspects including human rights and environmental commitments. The steps to be taken to mitigate the risks are to perform due diligence, a process that has been started during 2022. Getinge's ambition to reach zero carbon emissions by 2050 will depend on working together with suppliers both to reduce emissions in the medium term and to find innovative solutions for the future. Without this collaboration the risk is that the climate target will not be met. Simultaneously, climate may have an impact on the supply chain such as physical risks that may impact supply availability. To manage these aspects, the company has started reaching out to suppliers to understand their carbon journey and also to ensure that risks are mitigated. All new suppliers that may have an influence on the safety, quality or performance of the finished product and/or have an impact on the manufacturing process or the quality management system have been screened with focus on applicable certificates, approvals and compliance (i.e. to RoHS/REACH directives). In-line with the company's commitment Getinge is continuing its efforts to continuously develop and to broaden screening to include all suppliers following a risk-based approach. The current data set is not yet of adequate quality/completeness to report on. Getinge has started to survey ESG data from 100 tier 1 suppliers in 2022 and will continue gather full ESG risk profiles for its most important suppliers in 2023. Getinge continues to obtain business partner data, identify and assess negative environmental and social impacts within its supply chain to enhance reporting in this area. 153
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