This position statement sets out the scope and approach of Mölnlycke’s climate change agenda, taking into account the nature of our business, as well as relevant international conventions, such as the United Nations Framework Convention on Climate Change (UNFCCC), the Paris Agreement and the ten principles of the UN Global Compact, the UN Sustainable Development Goal 13 on climate action, as well as the recommendations from the Task Force on Climate-related Financial Disclosure and the views of our stakeholders.

Our ambition is to transform our business and become a global leader in sustainable healthcare, decoupling our growth from resource constraints and ending our dependency on virgin fossil materials and fuels.

In 2021, we committed to becoming a Net Zero company by 2050 at the latest and we are now operationalising our commitment by setting ambitious, science-based targets, aligning with the 1.5°C pathway under the Science Based Targets initiative.

The commitment includes our own operations (Scope 1 and 2), as well as Scope 3 upstream and downstream. Scope 3 covers around ~86% of our total emissions (in 2022); it includes for instance purchased goods and services, transportation, application and use of our products, and end-of-life.

We are acting on Climate Change

Apart from aligning with the 1.5°C pathway, we ramp up developing and delivering sustainable solutions¹ to support the transition to a clean low-carbon economy using the UN Sustainable Development Goals on Affordable and Clean Energy (#7) and Climate Action (#13) as a lens to address challenges, build a strong growth strategy and access new markets along the way.

In 2021, we announced an ambitious target of reducing absolute Greenhouse Gas (GHG) emissions in our own operations (Scope 1 and 2) by 50% by 2030, taking 2016 as our baseline (please see Mölnlycke Annual Report 2022 for details). During 2022 we have also measured our Scope 3 upstream and downstream emissions, according to the GHG Protocol. This will constitute the basis for our Scope 3 target settings and improvement roadmap based on prioritised programs and resources to create the biggest impact, in alignment with the 1.5°C pathway.

To make rapid progress in reducing greenhouse gas emissions and reach the Scope 1 and 2 target while maintaining long-term business growth, a clear plan has been established to transition to 100% fossil-free electricity by end of 2024 and continually reduce our absolute energy consumption year-on-year, while looking into fossil-free heat sources. We actively pursue energy efficiency and conservation programmes at our locations across the globe.

The target on fossil-free electricity is progressing well, with a current (2022) total share of renewable electricity use of 51% globally and 9 facilities operating entirely on renewable electricity, using Energy Attribute Certificates (EACs), solar panels and renewable electricity supply from the grid (please see Mölnlycke Annual Report). We have already started the work to increase the share of renewable electricity from sources with higher additionality in the near future, such as solar power.

We partner with customers and suppliers to drive sustainable innovation to reduce GHG emissions in our value chains across our businesses. Below are just a few examples of the work we do to reduce GHG emissions in our value chains:

• Developing new digital solutions in order to meet the increasing demand for climate-smart products and enable our customers to reduce their own emissions and material use.
• Introducing renewably sourced alternatives to fossil-based products, using biobased plastics.
• Improving the holistic environmental footprint of product formulations while guaranteeing the same performance during
  customer application or transport.
• Providing customers with information about the product footprint, including GHG emissions, using Life Cycle
  Assessment (LCA) methodology.
• Improving logistics performance, for example by optimising transportation routes of raw materials and final products as
  well as using lower emission transport options.
• Facilitating full recyclability of packaging by switching to monomaterials when possible and increasing recycled or
  biobased content.
• Encouraging supply chain partners to commit to the transition to a low-carbon economy.

Moreover, we have introduced GHG emissions assessment into relevant investment requests to drive further awareness of the environmental and future economic impact of major decisions, and to strengthen the sustainability of our business portfolio as a result.

Our GHG value chain emissions (Scope 1, 2 and 3) are made transparent through our external sustainability reporting, which is in line with the GHG Protocol. We also report climate risks and low carbon opportunities through the CDP Climate questionnaire for the benefit of all our stakeholders. We use key indicators to track our progress and drive continuous improvement processes in every function, supported by external benchmarks.

We support the recommendations from Task Force on Climate-related Financial Disclosures (TCFD) and include those disclosures in our external sustainability reporting. We recognise that climate change will pose risks as well as opportunities for us and our customers, both directly through our operations and indirectly through our stakeholder activities. Therefore, we will listen to the needs of our stakeholders when operating and providing our solutions.

Finally, we have introduced GHG emissions reduction in our travel policy for all employees, by reducing unnecessary travel or switching to alternative ways of travelling using more efficient and fossil-free transportation means.

Read more on our initiatives to tackle climate change

Mölnlycke's  ambition to decouple material use from its growth goes beyond recycling. It all starts with limiting the need to recycle. Therefore, we focus on zero waste, working in accordance with the ‘right first time’ principle and repurposing and reclaiming materials.

We’re on a journey to become a zero waste company, which involves focusing on both waste and water. We have an ambitious target of zero waste to landfill by 2030 as well as reusing water at all our most water-intensive sites by 2030 and we implement closed water loop systems in our production environments to that end.

Our waste reduction management programme to achieve the targets is based on site-specific activities designed to avoid waste being created in the first place and then minimising waste to landfill by correct segregation and disposing of remaining waste. We also identify new outlets for materials that would otherwise have been disposed of. Our actions make an important contribution to the UN Sustainable Development Goal on Sustainable Consumption and Production (SDG 12). To find out more, please see our integrated Annual and Sustainability Report 2021.

Our medical solutions often contain plastic or are delivered in diverse plastic packaging, with unique intrinsic performance properties which extend the lifespan of our solutions and protect them from external factors such as damage during transport and handling, or deterioration caused by contamination. This reduces the need for additional raw materials and resources in our products and contributes to minimising our customers’ waste.

As part of our resource efficiency journey, we have an ambition to provide >95% recyclable packaging by 2030. Governments around the world are adopting legislation targeted at tackling, for example, plastic waste. By embracing the power of upstream innovation to achieve two key circular economy innovation strategies — elimination and material circulation — we stay ahead of the curve. We continuously work together with customers, suppliers, recyclers, universities, and other partners to develop innovative and circular packaging solutions that have lower holistic environmental footprints and enable our customers to be more sustainable and deliver on their sustainability ambitions. These include a growing share of lighter, recyclable, recycled, bio-based and biodegradable packaging solutions while guaranteeing best clinical outcomes.

Taking action on resource efficiency

We consider competition with the food chain when evaluating the use of bio-based renewable raw materials and always opt for ISCC certified biobased materials, guaranteeing a transparent traceability along our supply chains and meeting the environmental and social standards.

In addition, we take a proactive approach to identify, manage and remove hazardous substances in all our products and processes to ensure safe use, ahead of legislation, future-proofing our products against changes in regulations.

We substantiate our research and efforts into alternative feedstocks and circularity of our products or packaging by continually updating our product Life-Cycle Analyses and Environmental Product Declarations.

We further increase the existing activities aimed at preventing littering, including educational projects for our customers and local communities in the countries in which we operate.

Life cycle perspective is an important basis for Mölnlycke’s sustainability improvement work. It ensures we take account of the full impact of a product or service, from raw materials to a finished product, during use and at the end of life.

Mölnlycke’s LCA programme is performed by both internal and external specialists. Our LCAs are based on the rigorous ISO 14040-44 requirements, a continually updated company life cycle assessment database, and commercially available life cycle inventory databases.

Life cycle assessment has been used in a range of processes for a number of years. We measure and report our greenhouse gas scope 1, 2 and 3 emissions according to the Greenhouse Gas Protocol, using a full cradle-to-grave life cycle assessment. This reporting forms the basis of our emissions key performance indicators and our commitment to Net Zero by 2050 at the latest.

As part of our innovation process, life cycle assessment guides the development of more innovative, sustainable solutions as we continuously strive to reduce the overall environmental footprint of our product value chains. We are also developing Environmental Product Declarations (EPDs) for selected products. We are keen to support the measurement of impact our solutions have in the context of our stakeholder’s organisations.

Finally, life cycle is integrated in the assessment of our major investment processes.

In all the above uses of life cycle assessment, the scope, indications, assumptions and data sources can limit the transfer or comparison of LCA results between organisations. Therefore, we commit to indicating these clearly, to enable better-informed analysis and decisions.

Strengthening the sustainability profile of our portfolio

Creating solutions to help achieve optimal healthcare outcomes can require complex production processes and the handling of many different substances. Mölnlycke are committed to safe use of all substances at every stage of design production. We systematically identify, classify, and risk assess all substances to ensure that any potential hazards are identified. Once identified, any hazards are carefully controlled and mitigated.

A particular focus is placed on substances that may be hazardous. We have a commitment to minimise and replace them whenever possible. This process is embedded in rigorous review and rating systems, plus portfolio-level analysis and reporting, to ensure continual removal of these substances from the organisation’s value chain. An ongoing programme of research, development and supplier interaction continues into technologies to replace hazardous substances. When replacement is not possible, hazardous substances may only be used when safe use and adequate controls can be demonstrated. This protects our teams, stakeholders and the environment.

Careful handling of hazardous substances and preventing releases to the environment are requirements of the ISO 45001 standard for occupational health and safety management and ISO 14001 standard for environmental management respectively. Mölnlycke is globally certified to the ISO 45001 and 14001 standards, and is regularly audited by an accredited body to ensure conformance.