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Sustainability

To access Bactiguard’s Annual and Sustainability Report 2023 here.

The challenges with healthcare-associated infections and antimicrobial resistance are at the top of the global health and sustainability agenda. The costs of healthcare-associated infections, many of which are linked to medical devices, are increasing drastically, and antimicrobial resistance is the cause of death for millions of people around the world. Bactiguard’s infection prevention coating technology, which is both safe and biocompatible, is a crucial link in the healthcare value chain in the struggle against antimicrobial resistance and has the potential to address one of the medical needs in global health care that has not yet been met. Our vision is to become global standard of care for preventing medical device related infections. Bactiguard’s coating technology is licensed to leading global MedTech companies. License partners apply our technology to their medical devices and sell them either under their own brands or in partnership with Bactiguard. Through license partnerships, we gain access to a large global market for medical devices, and our technology becomes available to as many patients as possible while we achieve profitability. Profitability goes hand in hand with Bactiguard’s purpose to champion a healthier world by preventing infections. Our main stakeholders are global MedTech companies, key opinion leaders in research and health and medical care, employees, and the capital market. Taking these into account, we focus on the sustainability issues that are most material for Bactiguard, where we can make the greatest difference.

Promoting UN SDG 3

Bactiguard’s infection prevention technology promotes UN Sustainable Development Goal 3: Good health and well-being. According to the World Health Organization (WHO), antimicrobial resistance is one of the most serious threats to global health and modern medicine. Bactiguard’s coating technology is a crucial link in the healthcare value chain in the struggle against both healthcare-associated infections and antimicrobial resistance. For example, clinical studies show that the risk for catheter-related urinary tract infections decreased 69 percent when the medical devices were coated with Bactiguard’s coating. Urinary-tract catheters with Bactiguard’s coating technology can be used for up to 90 days, three times as long as an uncoated catheter, and thus promote reduced consumption of single-use articles while patients experience less irritation, a decreased risk of infection and easier day-today living since they do not need to visit the hospital as often to change catheters.

Bactiguard’s sustainability areas

Our sustainability agenda consists of three areas: environmental sustainability, social sustainability and governance. Key aspects have been identified in these areas that form the basis for Bactiguard’s sustainability initiatives. Bactiguard’s sustainability targets were set in 2022. See on page 7 for monitoring of these targets, which Executive Management and the Board of Directors also conduct routinely during the year. One overarching goal is for all operations to be ISO 14001 certified by 2025 at the latest.

Environmental sustainability

GHG emissions (scope 1–3) 7,943 tonnes CO2e Energy Consumption 1,730 MWh Water withdrawal 7,404 m3 With the ambition of achieving sustainable use of energy and resources, the possibilities for reducing the company’s climate impact and resource consumption are continually assessed. The areas below have been identified as key from an environmental standpoint.

Production

Our production re-uses waste, collects and sorts environmentally hazardous chemicals to the greatest extent possible and maintains a low level of scrappage, and is planned in a manner that is moderate with its use of water and electricity. The Group pursues operations that have a reporting obligation under the Swedish Environmental Code (environmentally hazardous operations and protection of health) and the Swedish Work Environment Authority (use of contagious substances, Risk Class 2). The operations with reporting obligations pertain to parts of the production process and the research and development that the company pursues.

Purchasing

Purchases must be made from the perspective of the environment, quality and cost. Bactiguard strives to optimize its environmental performance in the supply chain. Chemicals that are used must be processed and discarded in an environmentally friendly manner. Metals are purchased from certified suppliers.

Recycling

The company strives to reduce the amount of its waste and to recycle as much as possible. The goal is to reduce waste by 20 percent by 2030.

Energy

The company’s energy consumption must be continually optimized, and the target is a 20 percent reduction in consumption by 2030 at the latest. The goal is that the energy used will come from renewable sources to the greatest extent possible, and full transition to renewable energy must be complete by 2030 at the latest.

Water consumption

Water is the key component in the company’s wound care products, and thus the company is highly dependent on clean water and purifies its own water. Water consumption is routinely measured and assessed, and production is planned in order to minimize consumption.

Transport and travel

Travel must always be considered on the basis of benefit against environmental impact, and more environmentally friendly alternatives must be evaluated. Bactiguard transports products and input goods using various means of transportation, and always strives to optimize logistics to reduce the negative environmental impact.

Carbon footprint

Three out of Bactiguard’s five sustainability targets are directly related to greenhouse gas emissions. Under the Greenhouse Gas Protocol (GHGP), a company’s GHG emissions are divided into three dimensions:

Scope 1: Emissions that occur directly in own operations.

Scope 2: Indirect emissions from generation of purchased electricity, steam, heating and cooling consumed by the company.

Scope 3: Covers all other indirect emissions that occur in a company’s value chain but that the company does

Scope 1: Bactiguard has a small number of personal vehicles in its operations. The need for vehicles is regularly assessed, as are the possibilities for electric vehicles and hybrids. No emissions in Scope 1 come from fixed sources in Bactiguard’s operations (for example, boilers and generators).

Scope 2: Energy in the operations is consumed in the form of electricity, district heating, and so on, with the ambition of entering agreements on guarantees of origin, renewable electricity/sources of energy and fossil-free energy. Heating is supplied through district heating.

Scope 3: An analysis of Bactiguard’s car- bon emissions shows that external emissions account for 90 percent of Bactiguard’s total impact in its value chain. For that reason, this is the dimension where efforts can have the greatest impact. Transportation is the largest cause of emissions in Bactiguard’s value chain, with the greatest possibility for reducing environmental impact. Logistics chains are being examined to reduce transportation. Input goods and travel also have an impact here.

Social sustainability

Job satisfaction and engagement are key elements in the company’s culture. An important factor is that our operations promote sustainable social development in accordance with our vision. Bactiguard makes use of the individual know-how of our employees. All employees are to receive correct and fair remuneration in accordance with their individual performance and contribution to the company’s success. Employees are to be offered opportunities for suitable training in order to develop relevant competence. Occupational health and safety Bactiguard conducts systematic occupational health and safety activities so that the work environment is both safe and stimulating for each individual employee. Our objective is to reduce the number of health and safety risks in the workplace and to proactively promote a healthy working environment. To achieve these goals, we conduct employee satisfaction surveys and safety inspections, and provide training. Health and safety activities are an integral part of decision-making and the planning of workplace activities, and are described in our occupational health and safety handbook.

Respect for human rights

Bactiguard does not tolerate child labor or forced labor. All employees have the right to choose whether or not they wish to be represented by a trade union and negotiate collectively. No employee may be discriminated against on the grounds of trade union affiliation. Bactiguard takes a serious view of all forms of violations of human rights, and if serious violations of human rights are discovered the company will act without delay and in a suitable manner.

Counteracting corruption

Bactiguard has a zero-tolerance approach to bribery and does not allow anyone to be offered payments or other benefits in order to exercise an influence. We do not discuss or enter into agreements with competitors around pricing, market shares or other similar illegal activities.

Equality

Bactiguard’s principle is that all people are equal and shall have the same opportunities in the workplace and in working life regardless of gender, ethnicity, religion or other belief, sexual orientation, transgender identity, disability or age. Bactiguard does not tolerate any form of victimization, discrimination, harassment or bullying at work, whether directed toward, or carried out by, managers, employees, job applicants, customers, suppliers or visitors.

Governance

To create conditions for long-term sustainable development, economic stability and profitability are important. The key sustainability topic for the company is its capacity to promote increased infection prevention. To be successful in this effort, our main stakeholders must have confidence in the company. To safeguard our ethics and our reputation, our business relationships must always be characterized by honesty, integrity and compliance with laws and regulations. We engage in dialogue with a large number of stakeholders on a daily basis. Our stakeholder relationships and dialogues must be honest, factbased and transparent without risking our commercial confidentiality. The basis for governance of Bactiguard is Swedish legislation, generally accepted accounting principles, the UN Declaration on Human Rights, the ILO Declaration on Fundamental Principles and Rights at Work, and the OECD Guidelines for Multinational Enterprises on Responsible Business Conduct. Together with the Code of Conduct, policies and internal instructions, the com- pany’s purpose, values, mission and vision form the foundation of Bactiguard’s sustainability efforts. The sustainability-related policies and internal instructions listed below regulate how the company and its employees are to act, with the objective of building a business that is sustainable over the long term. All policies are reviewed annually.

It is incumbent upon every employee to comply with the Code of Conduct as well as the regulations and procedures that the company has established for its environmental activities. The managers are responsible for monitoring compliance with the policies. Employees are encouraged to report deviations and highlight best practices. Executive Management and the Board of Directors continually follow up on the policies.

Risks and risk management

The company has identified the following sustainability risks as the most central:

Product safety

We must deliver safe products to patients, customers and healthcare. We comply with all legal and regulatory requirements as regards clinical trials, product development, production, declarations of goods, sales and marketing. Our MDR and CE labels, like other approvals from government authorities, are indications of quality that demonstrate our ability to maintain a high level of quality in our products and processes.

Environment

Our operations are subject to reporting obligations under the Environmental Code. Our environmental initiatives focus on safe handling of chemicals and waste in product development and production. Our infection prevention coating contains extremely small amounts of noble metals and do not require any special routines for discarding. The metals in the coating are not destroyed during waste incineration and are collected at the incineration facility. To ensure compliance with existing laws and requirements in the area of the environment and to ensure satisfactory self-checks, we have an environmental management system that is based on ISO 14001, with the company having an objective of being certified by 2025.

Corruption

We operate in a large number of countries via partners, resellers or direct presence. To counteract the risk of corruption, we have a zero-tolerance approach toward bribery and undue influence.

Human rights

Bactiguard has a zero-tolerance approach to violations of human rights. It is therefore important that all employees are familiar with the Code of Conduct and comply with it.

Adverse climate effects

Bactiguard could be adversely impacted by changed climate conditions in the locations where the company is engaged in production. Bactiguard has not identified any company-specific risks that are attributable to changed climate conditions at these locations.

Personnel/risk of competence shortage Engaged employees who are given opportunities for further education are the key to Bactiguard achieving the goals. To ensure that we can retain employees and attract competent personnel, we facilitate further education for our employees and clarify the structure of our organization in accordance with our strategy.

Data security risks

Hacking into IT systems could lead to disruptions in the operations as well as leaks of confidential information and personal data. This could adversely impact confidence in the company. By continually training and testing personnel and updating IT security services and procedures as needed, we ensure that our IT environment is up to date in order to prevent information and data security risks.