Getinge 2022 Annual Report

Getinge 2022 Annual Report Reporting Principles GREEN HOUSE GAS EMISSIONS CALCULATIONS Introduction Strategy Corporate Governance Annual Report Sustainability Report Other information Contents Boundaries: All GHG emissions are consolidated from entities over which Getinge has operational control (see pages 120-121, 130). For Scope 1, 2 & 3 emissions, CO2 is the predominant green- house gas (GHG) included in the calculation, as emission factors applied to energy consumption for different energy resources are converted to MWh/CO2e. See page 156 for conversion factors and heat values used for Gas and Oil. Getinge uses CO₂e emission factors that may include small amounts of converted CH and N₂O, where applicable. Getinge does not report on other ozone depleting substances or greenhouse gases, neither on biogenic CO2 emissions. The base year for calculation is 2019 emission values, if not stated otherwise. The base year has been chosen as internal systems have been harmonized across all production sites during the year. Scope 1 and 2 GHG emissions are calculated based on the Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (Revised Edition). Global Scope 1 emission factor for fuel combustion (2,7 kg CO2/kWh) is from the Department for Business, Energy and Industrial Strategy 2020 Government GHG Conversion Factors for Company Reporting, inline with IPCC 2006 Guidelines for National Greenhouse Gas Inventories. Country-specific (loca- tion based) factors are sourced from the IEA 2019 country specific factors. In addition, supplier specific factors have been analyzed locally to report emissions based on the location and market based methodology. Due to incomplete data from suppliers, Getinge does not report its market based GHG emissions in 2022, but strives to obtain such data in the future. Getinge uses a standardized emission factor for gas from non-renewable sources of 1,88496 kg CO₂e/Nm³ (Source https:// ghgprotocol.org/sites/default/files/Emission_Factors_from_Cross_ Sector Tools_March_2017.xlsx) Scope 2 emission factors for countries are sourced from IEA 2019 country specific factors, in line with the Revised IPCC Guide- lines for National Greenhouse Gas Inventories: Reference Manual. Scope 2 GHG emissions are calculated based on the Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (Revised Edition). Getinge calculates Scope 3 GHG emissions in accordance with the GHG Protocol: Corporate Value Chain (Scope 3) Accounting and Reporting Standard. Scope 3 GHG emissions are defined as all other indirect emissions that occur in a company's value chain. The GHG Protocol Standard includes 15 categories of Scope 3 GHG emissions that organizations are required to report. Material categories for Scope 3 GHG emissions reporting are determined using the GHG Protocol Corporate Value Chain (Scope 3) Accounting and Reporting Standard. With regards to scope 3, the main achievement during 2022 has been the analysis of all 15 categories of emissions and establishing a baseline from 2021 to be able to set Science Based Targets. The categories which have the largest impact on emissions in the value chain are sourcing of materials (-30%), distribution and logistics (-10%) and the use of products (~45%). Based on Getinge's commitment to the Science Based Targets initiative (SBTi), Getinge has defined its emission reduction targets and submitted the baseline for validation by the SBTI in 2022. Getinge's Scope 3 emissions baseline 2021 has been estimated using the spend based approach. For 2022, Getinge strives to switch to a weights-based approach, including information from our suppliers, consultants, and conversion factors sourced from publicly available databases. Getinge will report Scope 3 emission figures after validation of the targets and baseline by the SBTi in 2023. No use of Offsets in Emission Reduction Getinge strives to reach its targets to reduce GHG emissions without offsetting mechanisms to the extend possible. Getinge acknowledges that reducing CO₂ emissions with CO₂ offsetting is accepted by the GHP Protocol, but not by the Science Based Targets initiative (SBTI). There are different market instruments to neutralize carbon emissions: RECs (Renewable Energy Certificate) is a type of Energy Attribute Certificate (EAC) that represents the environmental attributes of the generation of a one-megawatt hour (MWh) of energy produced by renewable sources. Using EACs, end-users around the world can make reliable claims about their energy usage from renewable sources. As RECs are accepted by SBTI/GHG Protocol, purchasing RECS is not regarded as "offseting" at Getinge. In 2022, switching to certified carbon neutral energy products (i.e. via RECs) has accounted for 22% (2,351 tons CO2e) of the over all emission reduction in Scope 1 & 2 in production. Carbon Credits, Verified Carbon Units or VCUS Each VCU represents a reduction or removal of one tonne of carbon dioxide equivalent (CO2e) achieved by a project, but do not contrib- ute to the increase of energy production from renewable sources. Therefore, carbon credits are not accepted as emission reduction by the SBTI. At Getinge, the purchase of carbon certificates to neutralize emissions from non-renewable sources is regarded as "offseting". It helps to neutralize emissions as an interim solution while plans are implemented to increase energy efficiency, reduce energy consumption and switch to renewable energy sourcing wherever possible. Local emission reductions based on this approach are not included in the company reporting of emission reductions. Energy consumption from non-renewable sources is reported as such. Calculation of emissions from vehicles Getinge's fleet consists of 100% leased vehicles. Emissions from leased vehicles under the operational control of Getinge are calculated by multiplying contracted annual milage in km with CO₂ emission factors per vehicle from vehicle manufacturers (in gCO₂/ km). Data reported for emissions from leased vehicles is based on supplier data (72%) and estimations (28%) where data could not be obtained or verified from suppliers. For estimations, a standard internal average factor of 160 g/km per vehicle has been applied. 167

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