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Sustainability

To access Bactiguard’s Annual and Sustainability Report 2025 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 the 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 as 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, health and medical care, employees, and our shareholders. 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.

Sustainability at Bactiguard

Our sustainability agenda consists of three focus areas: Environmental, Social and Governance & business ethics. The foundation for Bactiguard’s sustainability process is our Environmental Policy together with our Code of Conduct and other related polices within Sustainability. As stated in the Environmental policy the Environmental work shall be a natural part within the organization and its processes. Bactiguard shall continuously improve the organization’s processes and activities and make sure to prevent any environmental pollutions and enhance the organization’s environmental performance. How Environmental work is to be conducted at Bactiguard is stated in our Environmental Handbook. The CEO is responsible for Sustainability work at Bactiguard. The CFO has been delegated the responsibility for the systematic Sustainability work. The CFO in turn leads the sustainability work with support from representatives in our operations in Sweden and Malaysia. Every year an annual follow-up and audit of the Environmental work is performed. Bactiguard’s Code of Conduct outlines the basis for our Social and Governance sustainability as a set of rules, outlining the norms, responsibilities and proper practices which is expected from Bactiguard and our employees.

European Sustainability Reporting Standard

On 26 February 2025, the European Commission published a package of proposed amendments to EU laws on sustainability reporting. This package, known as the “omnibus proposal”, contained adjustments to the CSRD but also to other EU laws on sustainability reporting. The part of the omnibus proposal known as “stop-the-clock” (i.e. deferred reporting requirements) was adopted and formalized as a directive in April 2025 by the European Parliament and the Council of the European Union. This stop-the-clock amendment also needs to be adopted by the Swedish parliament to become law. The sustainability reporting framework is currently undergoing a transformation and Bactiguard is closely following this to ensure that we comply with the upcoming framework. There is a standard developed for listed small and medium-sized companies (ESRS LSME). This standard is still in draft form and needs to be approved and formally adopted. The aim of this standard is to provide a more proportionate, simplified standard than the full ESRS requirements for large companies but adapted to the size and resources of SMEs. At the same time, discussions are underway to change which SMEs will be covered, which could mean that listed SMEs are also exempted from sustainability reporting requirements. Bactiguard will continue to follow discussions and decisions within sustainability reporting to ensure that we comply with upcoming regulations. A gap analysis has been conducted to see how Bactiguard meets the criteria in the LSME reporting standard. The analysis identified some areas where further development and adaptation are required. Work to address these gaps has been initiated and will continue in future reporting periods.

EcoVadis

Bactiguard’s sustainability work is evaluated via EcoVadis, a leading system for evaluating suppliers’ environmental aspects, working conditions, business responsibilities and subcontractors. The EcoVadis evaluation is an important achievement that illustrates Bactiguard’s commitment to sustainability and commitment to continued improvement in this area. With support from the insights we get from EcoVadis’ evaluation we work to continuously improve our sustainability strategy

Our sustainability focus 2025

In March 2025 Bactiguard South East Asia Sdn. Bhd officially received ISO 14001 certification. This achievement marks a significant milestone in our sustainability journey. More importantly, it strengthens our ongoing commitment to both reducing our environmental impact and ensuring environmentally responsible manufacturing processes. The ISO certification has been a prioritized target for Bactiguard 2024-2025 and after the final stage 2 audit review in late January Bactiguard officially received the certification on 11th of March 2025. In the spring of 2025, a health and well-being initiative was implemented within our organization in Sweden. This initiative was taken to focus and reflect on the health and well-being of employees with a focus on physical activity, mental health, stress management and sleep, and lifestyle habits. By creating health challenges and team-based activities, commitment and team spirit are created. During the year, we have continued to review and further develop our sustainability reporting to see which areas have the greatest climate impact and therefore the greatest opportunities to implement improvement measures. One such identified area concerns waste management and during the year we have launched a metric where we can make visible the amount of waste we have within these categories: hazardous, non-hazardous & recyclable. To strengthen and ensure compliance an IT risk assessment was conducted during quarter 1 2025. The risk assessment covered both our operations in Sweden and Malaysia. The audit consisted of a phase of preparation & planning and three individual workshop series. Key individuals from Bactiguard and Bactiguard’s IT Partner participated in these workshops led by the auditor firm. The findings from the IT risk assessment were presented at the end of quarter one and actions have been implemented or are in the process of being implemented based on the recommendations from the audit firm. Bactiguard retained the EcoVadis badge “committed” (first received 2024) also in the assessment in 2025. Bactiguard’s overall score in the assessment increased and we made progress in 3 of 4 key themes: Environment, Ethics & Sustainable Procurement. In the fourth theme, Labor & Human Rights, the assessment show that the reported metrics should be shown per subsidiary. This is a further refinement of our metrics in sustainability that we have focused on in 2025. Bactiguard has now improved its performance for two consecutive years in the EcoVadis assessments, and we aim and are committed to further enhance our performance. In Malaysia Bactiguard has a CSR program with focus on the local community. Bactiguard connected with 3 primary schools (children aged 7 to 12 years old) with a target to assist sixty students. The program is aimed to assist underprivileged students in their preparation for the new school year. Bactiguard sponsored with school bags, school exercise books and stationery (pencil colors, pencils, rulers, sharpeners and erasers). With extra contributions from Bactiguard employees, 129 students from 3 schools were included in the program.

Highlights

Environmental sustainability

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 material from an environmental standpoint.

Production

Our production processes have an environmental impact, and Bactiguard works systematically to reduce this footprint. We re-use waste where possible, carefully collect and sort environmentally hazardous chemicals, maintain low scrappage levels, and continuously strive to lower our water and energy consumption. These efforts are part of our ongoing commitment to improving resource efficiency and reducing the environmental burden of our operations. Parts of our production and research activities are subject to reporting obligations under the Swedish Environmental Code and the Swedish Work Environment Authority. This includes activities classified as environmentally hazardous operations and the handling of contagious substances (Risk Class 2). By meeting these requirements and maintaining transparent oversight, we ensure that our environmental responsibilities are managed in a controlled, compliant, and responsible manner.

Sourcing

Purchases must be made with consideration of the environment, quality and cost. Bactiguard strives to optimize its environmental performance in the supply chain. Our carbon footprint show that purchased goods and services is a main emission driver. To reduce emissions focus areas include packaging reduction, renewable energy, and logistics optimization. Chemicals that are used must be processed and discarded in an environmentally friendly manner. Noble metals are purchased from certified suppliers.

Waste

Our operations generate solid & liquid waste which is both hazardous and non-hazardous. Hazardous waste is stored in enclosed containers to prevent leakage. Waste is collected by approved waste management companies, which in turn report actual waste data. The company strives to reduce the amount of waste and to recycle as much as possible. Waste is a key element of the circular economy. Reusable waste offers the possibility of creating new products without needing to use virgin raw materials. This approach facilitates efficient use of resources and makes continual circulation of materials possible.

Energy

We strive to continuously reduce energy consumption and increase energy efficiency in our operations. We also strive to use energy from renewable sources to the greatest extent possible. Since Bactiguard have sites both in Sweden and Malaysia the pathways for the energy transition to renewable energy sources will differ.

Water consumption

Water is a 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 negative environmental impact.

Carbon Footprint

Bactiguard emits carbon dioxide and other gases that contribute to the greenhouse effect, this through our own corporate activities and facilities as well as those tied to our value chain.

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 not own or control.

Scope 1: Following the reorganization of Bactiguard’s sales organization in 2024, there is no longer any vehicle fleet within Bactiguard’s operations outside Malaysia. The vehicles that remain within the organization are not used in daily operations. Bactiguard does not generate Scope 1 emissions from stationary combustion sources within its operations, including boilers and generators.

Scope 2: Energy consumption in operations primarily consists of electricity and heating. Bactiguard aims to increase the share of renewable and fossil-free energy through agreements on guarantees of origin and renewable energy sources. Heating is mainly supplied through district heating.

Scope 3: An analysis of Bactiguard’s carbon emissions shows that external emissions account for 88 percent of Bactiguard’s total carbon footprint. For that reason, this is the dimension where efforts can have the greatest impact. Purchase of goods and services 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

Workplace 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, 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 is committed to respecting and promoting human rights across all aspects of our operations and value chain. The company has a zero-tolerance approach to child labor, forced labor, and any form of exploitation. All employees retain the unequivocal right to decide whether they wish to be represented by a trade union and to participate in collective bargaining, and no individual may be discriminated against on the basis of such affiliation. We strive to maintain a work environment characterized by fairness, integrity, and respect for every employee’s dignity. Bactiguard treats any indication of human rights violations with the utmost seriousness. In the event that significant breaches are identified – internally or externally – we will respond without delay, undertake a thorough assessment, and implement appropriate corrective measures. Our approach reflects not only compliance with international standards, but also our broader commitment to responsible and sustainable business conduct.

Equality

Bactiguard is committed to ensuring that all individuals are treated equal and have the same opportunities in the workplace and 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 and business ethics

Economic stability and profitability are important conditions to create long-term sustainable development. 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, fact based 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 company’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

Code of Conduct

Bactiguard’s Code of conduct describes the expectations on Bactiguard and our employees. Together with our common values, this guides our behavior towards each other and towards others. 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 sustainability 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.

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.

Whistle-blower function

Bactiguard strives to ensure that all employees feel safe about reporting potential problems or wrongdoings to their line manager or to the Human Resources department. Therefore we have a standalone external whistle-blowing reporting system that allows employees, suppliers, partners and external parties to anonymously report suspected breaches of our Code of Conduct or business ethics guidelines. The procedure follows our Policy for reporting of misconduct/ whistleblowing.

Information Security

As a knowledge-intensive organization, Bactiguard manages a wide range of information in oral, written, and digital form. These information assets are essential to our operations, our innovation capacity, and the trust placed in us by employees, customers, partners, and society at large. To safeguard this value, Bactiguard has established structured procedures and clear responsibilities for information management. Our approach is grounded in the principles outlined in the Bactiguard Code of Conduct and the IT Policy, which together set out expectations for confidentiality, accuracy, accessibility, and responsible handling of information. These policies guide employees in their daily work and ensure that sensitive data is protected, shared appropriately, and managed in compliance with legal and regulatory requirements. Through continuous improvements, training initiatives, and robust governance, we work to promote a secure and well-functioning information environment that supports sustainable business practices and minimizes risks related to data breaches or misuse.

Risks and risk management

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

Product safety

Ensuring the safety of our products is a fundamental responsibility for Bactiguard and is recognized as one of the key sustainability risks for our business. Product safety directly impacts patients, healthcare professionals, and customers, and any failure could have serious social and regulatory consequences. Our commitment spans the entire product lifecycle –from research and development, through clinical trials and production, to distribution, sales, and marketing – ensuring that safety and quality are embedded in every stage. We comply rigorously with all applicable legal and regulatory requirements, including the Medical Device Regulation (MDR), CE marking, and approvals from other governmental authorities. These certifications serve as tangible indications of our ability to maintain high-quality processes and safeguard end-users. Through ongoing employee training, risk assessments, and continuous improvement initiatives, we actively manage product safety as a critical sustainability risk, integrating it into our operational decision-making and overall approach to responsible business practices

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 selfchecks, we have an environmental management system that is based on ISO 14001

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. Our employees are not allowed to offer or receive any gifts or benefits, direct or indirect from a third party, unless it is considered to be within the limits of good business practices and applicable laws. In the event of the slightest uncertainty, our employees are expected to seek advice from immediate manager, executive management or the company’s General Counsel. Our employees are encouraged and expected to report suspected violations to their immediate superior, group management or the company’s General Counsel.

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

Bactiguard operates in a knowledge-intensive industry, making the attraction and retention of talented employees critical to our success. To achieve this, we actively support the professional development of our employees by providing opportunities for further education and training, ensuring a highly skilled and competent workforce.

Data security risks

Security breaches 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.