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 Reduced emissions from products during use phase and customer engagement Some of Getinge's products use a significant amount of energy and therefore cause larger amounts of carbon emissions, depending on the source of energy used by the customer. For the products that significantly contribute to the carbon emissions during the use phase (such as sterilizers and washers) the company continuously evaluates options to further reduce energy consumption. Customer support to reduce use phase emissions Electricity is needed to use some of the equipment provided by Getinge, and the products' overall carbon impact is highly depen- dent on the local electricity grid. A reduction of CO2 footprint in the use phase-at customer sites-requires energy transition by customers, moving from the fossil-fuel-based electricity grid to a renewable-source based electricity grid (wind, solar or biomass). Instructions and education on the energy-efficient use of products will be an important action to ensure a continued reduction of emissions from the use of products. Management approach All Getinge production sites are certified to ISO 14001 standard. An interdisciplinary work group with appointed leaders from involved corporate functions and all business areas has worked to implement roadmaps at production sites to reduce energy consumption and emissions in Scope 1 and 2 from production to meet the reduction targets. This group has also defined baselines, targets and roadmaps to reduce emissions in applicable categories in Scope 3. These baselines and targets are in line with the GHG protocol, Scope 3 guidance and requirements of the Science Based Targets initiative. See more information on page 167 on how Getinge calculates energy consumption and GHG emissions. Evaluation of the management approach The development of emissions from production (GHG Scope 1 & 2) are gathered monthly in a central data management system. An Environmental Data Management Group has been established to integrate data points from ERP systems to provide Scope 3 emis- sion data. Status and progress of emissions (in tons CO2e) in Scope 1 & 2 and emission intensity (in tons CO2e/MWh and CO₂e/MSEK in- ternal sales) are part of quarterly management reviews at site level, business areas and aggregated at Group level. The development of emission reduction activities and progress are part of the company quarterly reports and regular internal business review routines (see pages 46-49 on more information of the operating model). Main learnings in 2022 When Getinge established its baseline for Science Based Targets, one of the main learnings was the challenges in achieving higher granularity of emissions data. Getinge's emissions for the pur- chased goods is based on purchased value of the materials in com- bination with the place of tier 1 supplier origin. In regards to the use of the products, Getinge acknowledges the need for collaboration with customers to understand their source of electricity consump- tion, how they use the products and how Getinge can support in reducing their environmental impact. Getinge informs stakeholders and customer on the approach and progress via the company website and dedicated publications, such as the Customer Sustainability Handbook. The handbook was created in collaboration with customers worldwide to provide examples of how to make Sterile Reprocess- ing more sustainable. Getinge listened to the customers' thoughts and experiences of sustainability within Sterile Reprocessing to deliver customer-centric, tangible communication. The handbook can be downloaded at: https://info.getinge.com/10-ways-to-make- sterile-reprocessing-more-sustainable Assessment of impacts and management of risks The environment is a material aspect to Getinge as a company and in the healthcare sector as the contribution to climate change is high. The medical device industry is not considered to have a high exposure to climate change risks. This does not, however, mean that long-term exposures to both physical and transition risks related to climate change in the value chain do not exist. The main risks that can be identified are the impact extreme weather and rising sea levels may have in certain parts of the supply chain. An internal assessment concludes that the exposure to physical risks in own facilities is relatively low. The transition risks are related to demand for products with reduced climate impact as well as reduced amount of packaging and increased legal and compliance requirements in the ESG arena in particular in the EU. Mitigation: To reduce the emissions from the company value chain, net zero targets have been established and the carbon emis- sion reduction targets are submitted to the Science Based Targets initiative (SBTI) and validation will be done during 2023. 155
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