Sustainability is key
to Arjo’s success
ARJO 2023 SUSTAINABILITY REPORTCONTENT

ARJO’S SUSTAINABILITY WORK
Sustainability is key to Arjo's success3

Better and more sustainable healthcare

42023 Highlights

5

Impacts and actions throughout Arjo's value chain

7

Material topics form a base for priorities

9

Arjo Sustainability Framework

10

SUSTAINABILITY NOTES
Sustainability governance21

A sustainable offering

25

A responsible company

31

An attractive employer

34

Taxonomy38

GRI Index

43

Auditor’s Report48

A R J O H Å L L BA R H E T S R ED OV I S N I N G 202 3

2

ARJO’S SUSTAINABILITY WORKSUSTAINABILITY NOTESSUSTAINABILITY IS KEY TO ARJO'S SUCCESS“We want to be part of the transition
to a more sustainable society and,
together with our customers andpartners, we can contribute to moresustainable healthcare.”Joacim Lindoff
President & CEO

Sustainability is key to Arjo’s success and the company sees opportunities to further
strengthen its competitiveness by offering more circular solutions and business models.
As a global medtech company, Arjo plays an important role in society. The company’s
products and solutions contribute daily to increased patient safety, a better work environment for healthcare professionals and more efficient work processes in care environments.
With the Group's Sustainability Framework, Arjo works actively to reduce climate andenvironmental impact throughout the value chain, to ensure responsible and ethicalbusiness operations and to be an attractive and responsible employer.
This chapter describes Arjo’s sustainability efforts in brief. For more in-depth descriptionsof targets and activities, as well as the initiatives carried out during the year, see the fullSustainability Report starting on page 21.
Read more about Arjo's GRI reporting on page 43

A R J O 202 3 S U S TA I N A B I L I T Y R EP O R T

3

ARJO’S SUSTAINABILITY WORKSUSTAINABILITY NOTES

Better and more sustainable healthcare
The global healthcare system is facing significant c­ hallenges
with a growing and aging population, more lifestyle-­related
complications and a higher number of people living with a combination of different health conditions. At the same time, staff
shortages, an uncertain economic situation and a greater focus
on the climate and environmental impact of healthcare are putting health and medical care under increasing pressure.
Arjo contributes to better and more sustainable health­carethat can meet the challenges of both today and tomorrow. Thisis achieved through the company’s products and solutions that,on a daily basis, increase safety and the quality of life for patients,
improve the work environment for healthcare professionals, add
more resource-efficient work processes and reduce healthcare-­related costs.
In addition, Arjo is committed to reducing its climate and environmental impact while offering circular solutions that help
­customers achieve their sustainability targets.
Arjo thereby contributes to better and more sustainable healthcare by creating value for patients, healthcare professionals,
healthcare providers, shareholders and society as a whole.

Environment andclimateSocial values

Financial values• Reduce the climate andenvironmental impact of thecompany’s own operationsand value chain• Increase safety and qualityof life for patients• Ensure profitable growthfor Arjo• O ffer circular solutions
and products that reduce
healthcare’s climate andenvironmental impact• Improve the work environment
for healthcare professionals• Create long-term value for
Arjo shareholders• Ensure responsible and ethicalbusiness• Create more efficient work
processes and resource efficiency in healthcare• Be an attractive andresponsible employer• Reduce costs in healthcare
and thus for society as awhole

A R J O 202 3 S U S TA I N A B I L I T Y R EP O R T

4

ARJO’S SUSTAINABILITY WORKSUSTAINABILITY NOTES

2023 Highlights-11%
greenhouse gas emissions
from own­­operations (scope
1 & 2) since base year 2021

AA

ranking according toMorgan Stanley CapitalInternational (MSCI)

37%

share offemale managers
in senior positions

91%

share of purchases of directmaterials from ­suppliers who
have signed Arjo’s Business
Partner Code of Conduct20.5

improved ESG risk ratingfrom Sustainalytics, top ten in
medical technology sector

Sustainability targets inincentive programs
To strengthen internal governance and monitoring, Arjo decided during the year thatincentive programs for managers reporting
directly to the the Management Team should
include targets for reduced greenhouse gas
emissions. Arjo’s Group Management Teamalready has sustainability targets included
in its variable remuneration.

3,400,000

single use medical consumables havebeen reprocessed during theyear through Arjo ReNu

A R J O 202 3 S U S TA I N A B I L I T Y R EP O R T

5

ARJO’S SUSTAINABILITY WORKSUSTAINABILITY NOTESRankings and collaboration

Improved ESG risk rating
In 2023, Arjo received an improved Environmental, Social andGovernance (ESG) rating from analyst firm Sustainalytics. This
was the result of a significant improvement in the ESG risk
rating, meaning that Arjo ranks among the ten best performing companies in terms of listed, ranked medical technology
companies.
Arjo works continuously to reduce its exposure to sustainability risks throughout the value chain. In 2023, the company
conducted an internal program to develop and communicate
its work with sustainability-related risks. Arjo’s positions andpolicies in a number of ESG topics have been developed andare now available in a new ESG index on Arjo’s website andin a document containing the company’s positions regarding
responsible and sustainable business operations.

A R J O 202 3 S U S TA I N A B I L I T Y R EP O R T

6

ARJO’S SUSTAINABILITY WORKSUSTAINABILITY NOTESVÄRDEKEDJA

Impacts and actions
throughout Arjo’s
value chain
Arjo’s sustainability efforts are based on an analysis of the impacts
from the company's value chain. The Group works continuously toassess and manage the company’s impact throughout the value chain.

To maximize positive impacts and minimize negative impacts, Arjo continuously ­analyzes how thecompany’s operations impact various sustainability areas in the value chain. These efforts identify
opportunities and risks related to sustainability aspects in the areas of environment and climate,social responsibility and corporate governance. The analysis forms the basis of Arjo’s Sustainability
Framework and is crucial in determining the company’s sustainability priorities.
The illustration on the following page demonstrates the degree to which the Group can influence
various sustainability aspects in the value chain. Arjo has a high degree of influence on the operations that the company controls, such as its own factories and offices. Impacts deriving fromsupplier's part of the value chain are outside of Arjo's direct control and therefore require close
collaboration with suppliers and other business partners.

F or a more detailed account of the impact
and actions, see page 24"We are continuously developing
our collaboration with suppliers
and other partners, which is
crucial in transforming to a moresustainable value chain."Jonas Cederhage
EVP Supply Chain and Product­Development & Operations

A R J O 202 3 S U S TA I N A B I L I T Y R EP O R T

7

ARJO’S SUSTAINABILITY WORKSUSTAINABILITY NOTES, TRENDS AND MARKETWORLD

VALUE CHAIN

ARJ

O'S D

EG R E E O F I N F LU E N

LO W

Research and development
Arjo’s research and development process has a high degree of
influence on various sustainability aspects and the company works
continuously to develop existing and new products based on, forexample, resource and energy efficiency, circularity and productsafety.

CE

HIG

Purchasing
With regards to purchasing, Arjo has a moderate degree of influence on various sustainability aspects since the company does nothave direct control over the supply chain. Arjo collaborates with
suppliers throughout the value chain and has launched a program
to transition to a more sustainable supplier base.

H

R&D

End-of-life

Production

DE

TE
RA

TransportationMO

The company has a high degree of influence on its own production
given that Arjo has full control over the operations. Arjo’s efforts
focus on the transition to renewable electricity, energy efficiency­enhancements, waste reduction efforts and occupational healthand safety.

ing
cycl
Re

Usage

Service, rental and sales

Production
HIG
H

Transportation

Within Arjo’s own service, rental and sales operations, the company
has a high degree of influence on various aspects of sustainability.
These primarily involve increasing the use of renewable electricity
in buildings, reducing emissions from company vehicles and focusing on health and safety in the workplace. Arjo ReNu enables thereuse of medical consumables, which reduces the climate impact
from healthcare.

Usage
In the usage phase, Arjo has a low degree of influence on various
sustainability aspects, but by offering high quality products withlong life cycles, its impact can be limited. Arjo works continuously
to improve the resource and energy efficiency of its products.

O

DE

Service,rental & sales

M

TE
RA

HIGH

LO W

Purchasing

Arjo has a moderate degree of influence on transportation since
this is carried out by external parties. Arjo works continuously to
reduce the impact of transportation through in-depth collaborations with transport providers and continuous developmentof packaging as well as the transition to low-emission transport
options.

End-of-life
Arjo has a low degree of influence on sustainability aspects in
end-of-lifecycle treatment since this is carried out by external
parties. Both the preparation of product dismantling instructions
and the improvement of possibilities to recycle material from thecompany's products are currently being evaluated.

A R J O 202 3 S U S TA I N A B I L I T Y R EP O R T

8

ARJO’S SUSTAINABILITY WORKSUSTAINABILITY NOTES

MATERIALITY ASSESSMENT

Material topics ­forma base for priorities
Regular materiality assessments of Arjo’s impact and an ongoing
dialogue with stakeholders in the value chain ensure that the Group’s
efforts are targeted to the areas where they have the greatest effect.

The materiality assessment is carried out by Arjo’s
sustainability function, in close collaboration
with other internal functions and in dialogue with
the Management Team and Board of Directors.
The relevance of various sustainability aspects
are assessed and matters that are material forthe company’s sustainability efforts are identified through interviews and surveys with internaland external stakeholders.
The 2023 assessment found that those topics
identified with the latest materiality assessment
performed in 2022 were unchanged.
During the first half of 2024, Arjo will conduct
a double materiality assessment in accordancewith EU’s new Corporate Sustainability ­Reporting
Directive (CSRD). This will pave the way for beginning to report on sustainability in accordancewith the CSRD.

Arjo’s material topics:• Product quality and safety• Compliance, ethics and anti-corruption• Occupational health and safety• Circularity in product design• Purchasing/supplier base
• Greenhouse gas emissions and energy efficiency• Human capital and fair labor conditionsF or more detailed information on
Arjo’s material topics, see page 22“By mapping the needs ofour stakeholders and analyzing our
impact in the value chain, we canidentify our most material topics
and ensure that we target our­efforts in an efficient manner.”
Marion Gullstrand
EVP HR & Sustainability

A R J O 202 3 S U S TA I N A B I L I T Y R EP O R T

9ARJO’S SUSTAINABILITY WORKSUSTAINABILITY NOTES

Arjo Sustainability Framework
Contributing to more sustainable
healthcare is at the core of Arjo’s
business model. To achieve this, aframework has been developed withthree focus areas. These focus areas
are based on the results of regularmateriality ­assessments and analysisof the company’s positive and negative
impacts throughout the value chain.
The framework forms the foundationof Arjo’s sustainability efforts and isbased on the three pillars of environment, social responsibility and governance (ESG). The work is driven anddeveloped by the company's own­ambitions as well as increased demands from customers and otherstakeholders.

A sustainable
offering

A responsible
company

Arjo works actively to reduce emissions from its own operations andfrom the value chain. The company’s
product development is based on
the principles of EcoDesign and Arjo
strives to reduce resource consump–tion and offer customers more circular solutions.

Arjo’s relationships with various
stakeholders are based on a highlevel of business ethics and compliance. The company sets thesame high demands for its own
operations as for its business
partners, with zero tolerance forcorruption, fraud and bribery.

R ead more on page 11R ead more on page 14

An attractive
employer
Arjo promotes a culture of diversity,
equity and inclusion and the continual
development of employees. Health andsafety in the workplace is of utmost
importance to Arjo and the company
follows international frameworks andguidelines for human rights and fairlabor conditions.

R ead more on page 17

Clear governance ensures results
Arjo’s sustainability efforts are based on directives, policies and clear governance involving all levels in the company– a systematic work process that enables the implementation of approved activities.
R ead more about the governance of Arjo’s sustainability efforts on page 21.

A R J O 202 3 S U S TA I N A B I L I T Y R EP O R T

10

ARJO’S SUSTAINABILITY WORKSUSTAINABILITY NOTES

A sustainable offering
To reduce the company’s climate impact, Arjo strives for sustainable
use of energy and resources and to increase the Group’s contribution
to a circular economy - thereby contributing to long-term sustainable
development.

The effects of climate change are increasing the pressure on
healthcare systems. At the same time, the healthcare sector
accounts for approximately 4.4 percent of global greenhousegas emissions. About 60 percent derives from the supply chain,of which 10 percent comes from medical devices.

Arjo’s climate targets
Arjo wants to contribute to the transition to more sustainable
healthcare. The Group’s target is to reduce greenhouse gas
emissions from the company’s own operations (scope 1 and 2)
by 50 percent by 2030, with 2021 as the base year. To achieve
the target, action plans have been developed with sub-targets forthe various operations in the Group. Since sustainability efforts
permeate the entire organization and are often conducted acrossinternal functions, the work is increasingly carried out throughcross-functional programs and teams.
For emissions in the value chain (scope 3), Arjo’s target is to
reduce emissions for the most material categories by 25 percent

by 2030, with 2021 as the base year. A number of initiatives havebeen launched to achieve the target in the areas of purchasing,transportation and product development.
During the first quarter of 2024, Arjo's climate goals wereapproved by Science Based Targets initiative – an importantmilestone in the group's sustainability work. This means that theclimate goals are considered to be in line with the latest climate
science and the Paris Agreement.

Climate impact in the value chain
About 9 percent of Arjo’s greenhouse gas emissions stem fromthe company’s own operations (scope 1 and 2), mainly from vehicle fuel and heating of the Group’s facilities.
The majority of Arjo’s greenhouse gas emissions – about 91
percent – originate from the value chain (scope 3). The emissions
derive mainly from material production of components for Arjo’s
products, purchased transportation and from customer use of
the Group’s products. Metals and plastics are the company’s

Arjo’s material
topics:A sustainable offering• Circularity in product design• Greenhouse gas emissions
and energy efficiency

most prevalent materials and account for a significant share ofemissions from material production. In the usage phase, whencustomers use the company's products the emissions are linked
to the products’ energy consumption.

Climate impact from Arjo’s products
The Group’s products are developed with a focus on high quality
and in accordance with the principles of EcoDesign. This method
is used to ensure long life cycles and limited environmental­impact during the product’s entire life cycle. Arjo focuses on the
resource-­efficient use of materials, waste reduction and recycling­opportunities. The products are designed to be easily updated
and maintained and to reduce energy consumption when in use.
To evaluate the climate and environmental impact of the products and to identify improvement potential, Arjo regularly carries
out life cycle assessments of existing products. In 2023, a life
cycle assessment was conducted of Arjo ReNu, the Group’s business for reprocessing of single-use medical devices.

A R J O 202 3 S U S TA I N A B I L I T Y R EP O R T

11

ARJO’S SUSTAINABILITY WORKSUSTAINABILITY NOTESA SUSTAINABLE OFFERING

Material
production

Products
in use

77%

14%

Arjo
operations

9%

Arjo is continuously developing its circularity efforts, and in
2023, the company initiated efforts to develop a frameworkthat will cover the entire life cycle of the company’s products.
The framework is to be integrated with EcoDesign before
being implemented into relevant parts of the organization.

Increased circularity through rental and reuse
Two of Arjo’s operations have inherent circular qualities that
help reduce the climate and environmental impact of healthcare in terms of reduced emissions, the reduced use of raw
materials and reduced waste.
For rental operations, customers rent the products they require for the period of time they are needed. This means thatthe use of resources is optimized as the same products canbe used over time by several different care units. This in turnleads to fewer products being produced, reducing the use of
raw materials and reducing waste, in line with the transition
to a more circular economy.

Arjo’s rental operations include products that are specifically developed to be able to be transported between different care providers while retaining their quality, function andsafety. After each rental, Arjo checks, cleans and, if necessary, conducts maintenance on the products.
The Group’s other business with a circular business modelis Arjo ReNu, which enables the reuse of single-use medical
consumables through a water-based process. Arjo acquired
ReNu, with operations in the US, in 2018 and in 2023, Arjo
launched the ReNu business on the Australian market.

Greenhouse gas­emissions in Arjo’s
value chain.

“We work purposefully to reduce
emissions from our own operations
and throughout the value chain.
To achieve our targets, we work
across various internal functions andmarkets in cross-functional projects.”

Johan Östblad
Head of Sustainability

A R J O 202 3 S U S TA I N A B I L I T Y R EP O R T

12

ARJO’S SUSTAINABILITY WORKSUSTAINABILITY NOTESA SUSTAINABLE OFFERING

Arjo ReNu reduces the climate impact of healthcare
Medical consumables comprise a large proportion of the total climate impact of healthcare.
As such, recycling solutions provide significant
opportunities to reduce emissions.
“The reuse of consumables is becoming
increasingly common in line with the healthcare
sector scaling up its sustainability initiatives.
During the Pandemic, this also became a wayof dealing with material shortages due todisruptions in the supply chain,” says Julien
Bouchard, Senior Director Operations & VP
Operations Arjo ReNu.
Arjo ReNu is currently available in the US
and Australia and helps healthcare providers
to safely and economically reuse consumables.
Over 280,000 products are handled each monthsuch as garments for the prevention of bloodclots (venous thromboembolism, VTE).
“Through Arjo ReNu, we contribute to moresustainable healthcare while helping our custo­mers achieve their sustainability ambitions.
The circular business model reduces the needfor raw materials, requires less transportation
and reduces waste,” says Julien Bouchard.

Many established methods for reuse include
chemicals with substances that are hazardous
to the environment and health. Arjo ReNu uses
a completely water-based process that is
chemical free.
In 2023, a life cycle assessment was conducted
for the US market demonstrating that reusing
VTE garments using the Arjo ReNu process
reduces climate impact by 54–64 percent
compared with single use. In total, Arjo ReNu
has made it possible to avoid carbon emissions
from VTE garments corresponding to 165 tons
per year.
“The analysis shows that the process extends
the life time of garments that would otherwise
be disposed of after just one use. This signifi­cantly reduces emissions,” says Julien Bouchard.
The global market for the reuse of medical
consumables is growing and the possibility oflaunching the ReNu business in additional
markets is continuously evaluated.

Julien Bouchard
Senior Director Operations& VP Operations Arjo ReNu

possibilities

efficiency

customer value
A R J O 202 3 S U S TA I N A B I L I T Y R EP O R T

13

ARJO’S SUSTAINABILITY WORKSUSTAINABILITY NOTES

A responsible company
As a global medical technology company, Arjo's products and solutions
contribute to helping people in an often vulnerable situation in healthcare.
A significant proportion of the company's customers are publicly funded
which means that Arjo has a particular responsibility to ensure responsible
business conduct. Arjo's growth and success are dependent on stakeholders' trust, and long-term relationships with both customers and suppliers
are based on sound business ethics and clear principles for regulatorycompliance.

Arjo has a broad network of suppliers and other business partners, and place the same high demands onthem as on its own operations, with zero tolerance for
all forms of corruption, fraud and bribery. The company’s ambition is to impact this network in contributing
to the development of a fair global market. Arjo hassigned the UN Global Compact and supports the ten
principles that apply to human rights, labor, the environment and anti-corruption.

Responsible business an important
aspect of the culture
Arjo's success must always be the result of the value
it creates for customers through its products andsolutions and its own work and never by offering dubious benefits circumventing rules or engaging in other
unethical behavior. Arjo is to only engage in businessactivities where competition is honest and fair, basedon the company’s offering.

Arjo’s material
topics:A responsible company• Product quality and safety• Compliance, ethics and­anti-corruption• Purchasing/supplier base“We expect the highest levelof business ethics from our own
operations as well as from our­suppliers and business partners.
Our Code of Conduct play a central
role and we work actively withtraining to ensure compliance.”
Ingrid Carlsson
EVP Legal & Business ComplianceA R J O 202 3 S U S TA I N A B I L I T Y R EP O R T

14

ARJO’S SUSTAINABILITY WORKSUSTAINABILITY NOTESA RESPONSIBLE COMPANY

Arjo promotes an inclusive and safe culture where employees,
suppliers and other partners are willing and able to speak up when
they experience questionable behavior. Employees are expected totake ownership and personal responsibility for acting correctly, in
accordance with laws and regulations and in line with Arjo’s ethicalguidelines.

Code of Conduct guides
Sound business ethics, transparency, honesty and well-defined­principles for compliance are at the core of Arjo’s long-term business
relations. This commitment starts with the Board of Directors and issolidified in the organization through the company’s Code of C
­ onductfor employees.
The Code of Conduct is based on international principles and covers
issues such as anti-corruption, fair competition, human rights andwork environment responsibility. The Code applies to all employees
and the company holds regular training to ensure ­compliance with
the Code.
Arjo’s contracts with external parties also include a specific Code of
Conduct. This Code of Conduct describes how suppliers, distributors
and other business partners of Arjo are expected to act and whattargets they are expected to contribute to. Compliance is ensured
through ongoing dialogue and screening.

Together with our suppliers,
we reach our sustainability targets
Responsible purchasing is a prerequisite
for being a responsible company. Arjo
has developed a program for evaluating
suppliers with a focus on issues such as theclimate and environment, social responsability and health and safety. The work
aims to maintain a high level of businessethics by identifying, managing and, where
possible, preventing risks in the supply chain.
“The first screenings were conducted onsite at selected suppliers in 2023 and theresults provided us with the opportunity todevelop plans together to reducesustainability risks and impacts in the value
chain,” says Lyudmyla Bagiryan, Procure­ment Sustainability Manager of Arjo.
In 2024, the program will be rolled out inthe supplier base and will play an importantrole for achieving the company’s sustainability targets for the value chain.

Product quality and safety
Safe, high-quality products are Arjo’s hallmark, which the company isalways working to ensure. Medical devices are strongly regulated andArjo ensures that the Group’s products follow laws and regulation in
all markets in which the company operates.
Considerable importance and resources are placed on safety, quality and compliance. A quality management system with clear policies
ensures that the right processes and procedures are used in operations. To meet changes in regulations from authorities and legislation,
Arjo carefully monitors developments of national, regional and local
regulations and evaluates and improves products and processes.
Arjo also continuously collects feedback from customers in the deve­
lopment of existing and new products.

Lyudmyla Bagiryan
Procurement Sustainability
Manager, Supply Chain

A R J O 202 3 S U S TA I N A B I L I T Y R EP O R T

15

ARJO’S SUSTAINABILITY WORKA RESPONSIBLE COMPANYSUSTAINABILITY NOTESCommon groundfor business ethics
Continuous dialogue and training are key elements in Arjo’s work withbusiness ethics. In March 2023, distributors and sales representatives in
Latin America came together to create a common ground for businessethics. Over 70 participants discussed various ethical dilemmas basedon local challenges, perspectives and experiences. Arjo’s VP Business
Compliance hosted the program, which also saw participation from
the Managing Director for Latin America and the President for Global
Sales. The training session was designed based on the company’s rules
and procedures with the aim of building a culture that has businessethics as a top priority. Similar sessions will be held in more markets
in 2024.
To ensure that suppliers and distributors in the different regions
comply with the Code of Conduct, Arjo has trained special ambassadors in recent years whose task is to support the markets in issues related to business ethics. The ambassadors use a digital evaluation toolin the form of a global database that stores observations on suppliersand distributors. The ambassadors work closely with other functions
at Arjo for selecting suitable partners.

A R J O 202 3 S U S TA I N A B I L I T Y R EP O R T

16

ARJO’S SUSTAINABILITY WORKSUSTAINABILITY NOTES

Encourage
growth andleadership

An attractive
employerCreatevalue andefficiency
Movefrom PowerPoint
to action

To attract and retain employees, it is essential
for Arjo to offer healthy and equal working
conditions combined with a strong and compelling purpose. Diversity, equity and inclusion
are top priorities for Arjo and the company
values high level of health and safety for­employees and business partners.

Arjo has knowledgeable and committed employees from all over theworld who work closely towards common goals. Using the Group’s
Guiding Principles and Leadership Behaviors as the starting point,
Arjo strives to create an engaging culture and workplaces that offer
all employees opportunities for growth and development.

Diversity, equity and inclusion
Arjo strongly believes that diversity, equity and inclusion are crucial
factors for building a strong company and achieving success. By focusing on openness and continuous learning, Arjo fosters a culturethat nurtures every employee’s talent, potential and contribution
to the company. Arjo’s objective is to develop the business and­employees together.

Empower
and work
as One TeamTakeownership

Arjo’sGuiding
Principles

Eleven commitments have been established to continue to guidethe workplace in the right direction. These include training andcoaching for managers, and measurement and follow-up processes
to ensure the right focus and priorities throughout the organization.
A governing committee sets targets and provides guidance and recommendations to the organization in the areas of diversity, equity
and inclusion.

Focus on attracting and developing employees
Attracting and retaining employees with the right competencies isa key strategic priority for Arjo. Based on the organization’s needs,
the right skills are identified in a well-defined process using various
assessment tools.

Arjo’s material
topics:An attractive employer• Occupational health and safety• Human capital and fair labor
conditions

A R J O 202 3 S U S TA I N A B I L I T Y R EP O R T

17

ARJO’S SUSTAINABILITY WORKSUSTAINABILITY NOTESAN ATTRACTIVE EMPLOYER

Arjo provides conditions for employees to develop and grow together with the company
through structured actions including talent programs, mentorship programs and development plans at both individual and team levels.
Arjo works together with local universities and colleges to attract new talent. Arjo also
provides internships for students, offers degree projects and, in many markets, has trainee
programs that give students the opportunity to participate in interdisciplinary projects while
receiving internal training.
Arjo’s efforts focus on continuous dialogue about employee skills, personal targets anddevelopment linked to the company’s strategic business objectives. Arjo follows up all partsof the Group’s HR strategy in its annual People Survey and the results are applied actively todevelop the organization.

Occupational health and safety
The health and safety of Arjo’s employees and partners is of great importance. The company
makes continuous improvements based on Arjo’s Directive for Occupational Health and Safety.
As part of these efforts, Arjo has implemented a management system and a framework forachieving a consistently high safety standard and ensuring a healthy physical and psychosocial
work environment at its various workplaces.
Arjo’s work environment is regularly evaluated by work environment representatives andcommittees comprising employees from different functions and levels. This structure fosters
a mutual understanding and enables need-based decisions at every facility. Audits are conducted every year to verify that the Group’s facilities meet established targets and applicableregulations and requirements.

Human rights and fair labor conditions
Arjo complies with internationally recognized principles, frameworks and guidelines on humanrights. These also form the base of Arjo’s Code of Conduct for suppliers and other business
partners. The company continuously develops its work on human rights and intends to perform human and labor rights due diligence in its supplier base..
Fair labor is in line with international conventions, and local laws and collective agreements
always apply to Arjo’s operations. Disciplinary action or discriminatory behavior against
employees who legally decide to join a trade union is not accepted. A target for the organisation is to balance out unfair salary differences. The aim is for all employees to be offered theopportunity to receive appropriate training in order to develop relevant skills and to promote
growth and career development within the company.

Awards in 2023
Arjo Canada and Australia was recognized
as a Great Place to Work ® in 2023. The­certification is based on feedback from
Arjo’s employees who complete an anonymous survey.
Arjo Canada was recognized in 2023 as oneof the Best Workplaces™ Managed by Women
2023 from Great Place to Work®.

Arjo Australia was selected for theBest Workplace List for Women 2023
from Great Place to Work®.
Arjo Canada was selected in 2023 for
The Career Directory as one of Canada’s
Best Employers for Recent Graduates,
a guide to entry-level recruitment for­recent college and university graduates.

A R J O 202 3 S U S TA I N A B I L I T Y R EP O R T

18

ARJO’S SUSTAINABILITY WORKSUSTAINABILITY NOTESAN ATTRACTIVE EMPLOYER

innovation

peopleOpportunity to grow as
an employee and a person
Kajsa Haraldsson started working in product development
at Arjo in 2008. In her role, she follows products from thedrawing board to production and delivery to healthcare
facilities. Kajsa was given the opportunity to participate in
Arjo’s talent program in 2017 and a year later she becamea group manager. Kajsa has served as Director ProductDevelopment, Hygiene & Medical Beds since 2020.
“During my studies, I realized that my two main interests– people and technology – could be combined in medtech.
On my journey at Arjo, I have grown as both an employee
and a person. I was very inspired by the opportunity to­develop and take on new roles, and this has now become
an important part of my leadership. I want to inspire­others to develop in areas they are passionate about.”

growthKajsa Haraldsson
Director ProductDevelopment, Hygiene& Medical Beds

A R J O 202 3 S U S TA I N A B I L I T Y R EP O R T

19

ARJO’S SUSTAINABILITY WORKSUSTAINABILITY NOTESAN ATTRACTIVE EMPLOYER

mentorship

ambitioninclusiveness

Efforts to reduce youth­unemployment in South Africa
With youth unemployment at almost 60 percent,South Africa faces a major challenge with its labormarket. To turn this situation around, the country
has a Youth Employment Services Program (YES)
aimed at getting more young people into the labormarket. Arjo has participated in the YES program
since 2019 and so far welcomed more than 50 people who have gained valuable work experience.
“During a year, we help 12 young adults gain experience from different parts of our company. They
are also assigned a mentor at Arjo who provides
guidance. We have decided to offer permanent employment for every round of the YES program andto date we have hired five people,” says Abdullah
Ebrahim, President Arjo Africa.

Abdullah Ebrahim
President Arjo Africa

A R J O 202 3 S U S TA I N A B I L I T Y R EP O R T

20

ARJO’S SUSTAINABILITY WORKSUSTAINABILITY NOTES

Sustainability
reportSustainability reporting at Arjo takes placein accordance with the Global Reporting­Initiative (GRI) 2021, follows the reporting
period January 1 to December 31, 2023 andencompasses the entire Arjo Group.
The sustainability report is structured based on the company’s­Sustainability Framework with three focus areas: A sustainable
offering, A responsible company and An attractive employer.
During the year, no significant changes took place in Arjo’s organization or value chain that affected the sustainability report. A significant change in reporting occurred due to the validation processof the Group’s climate targets by the Science Based Target initiative.
This change means that the base year for reporting has been adjusted
from 2019 to 2021. Reporting in the focus area A sustainable offering was changed in 2023 to reflect the identified material topics
for greenhouse gas emissions. These changes or deviations arepresented in the relevant sections. There were no material changes
to the reporting of the focus areas A responsible company and An
attractive employer.
Sustainability at Arjo is integrated into the various parts of the line
organization. Some sustainability information is included in otherparts of the Annual Report. Arjo works continuously to ensure thatthe company complies with the most recent sustainability legislation. The auditor’s statement on the statutory sustainability report
can be found on page 48. The scope of the review of the sustainability report was not expanded.
Arjo has a revolving credit facility for a total of EUR 600 M thatis linked to three of Arjo’s long-term sustainability targets. Thesetargets were subject to a limited assurance review in 2023. The
credit facility expires in 2028.

Sustainability governance
To meet ambitions and goals, Arjo’s
sustainability agenda follows a clear
structure that involves all levels of
the company. The governance m­ odelis based on relevant directives andpolicies, and ensures systematic implementation and follow-up of approved
activities.
The Arjo Sustainability Framework is the foundation of
the Group's sustainability efforts and forms an integral
part of the business, through both daily decisions
and more far-reaching activities. A clear governanceprocess ensures that the work is carried out methodically and with the right priorities to achieve the desired
results.
Starting 2022, 10 percent of the Arjo Management
Team’s variable remuneration is based on sustainability targets. Two targets have been identified for 2023:
reducing the Group’s carbon emissions and making it
possible for the organization to set climate targets
according to Science Based Targets initiative in linewith the Paris Climate Agreement. In 2023, Arjo alsodecided to include a target for reducing carbon emissions in the incentive program for employees who report directly to the Arjo Management Team.
During the year, Arjo’s Management Team and relevant employees received training on the new EU Corporate Sustainability Reporting Directive (CSRD). The
company’s Board of Directors received similar training
in January 2024. A process is underway to ensure that
Arjo’s sustainability reporting meets the requirementsof the CSRD.

A governance process thatinvolves all levels
Arjo's Board of Directors is responsible for thesustainability report and for governing and reviewing
sustainability efforts at Arjo. The Board decides
on guidelines and policies and follows up on sustainability activities by holding regular meetings on target
achievement and future planning. The Audit Committee oversees business ethics, compliance andsustainability, and reports to the Board.
Arjo’s CEO and Management Team assume operational responsibility for sustainability activities andsustainability issues are followed up at management
team meetings. The CEO and Management Team
actively participate in these efforts by deciding on priorities and targets, evaluating results and identifying
areas for improvement.
The day-to-day operational responsibility for sustainability activities at Arjo lies with the Group’s line
organization, often through cross-functional teams
responsible for carrying out projects. The local units
report data which is then compiled by the central sustainability function and presented to the Arjo Management Team and Board of Directors every quarter.

A R J O 202 3 S U S TA I N A B I L I T Y R EP O R T

21

ARJO’S SUSTAINABILITY WORKSUSTAINABILITY NOTES

Materiality assessment
Arjo performs regular materiality assessments to prioritize thesustainability topics that are material to the company and to identify
topics that are important to various stakeholders. In turn, thesematerial topics govern Arjo’s sustainability reporting. The work
process for the materiality assessment follows the requirements of
the Global Reporting Initiative (GRI) 2021 and comprises four steps.

Step 1
Understand theorganization’s context.

Step 2
Identify actual andpotential impacts.

Step 3
Assess the significanceof the impacts.

Step 4
Prioritize the most significant
impacts for reporting andvalidation.

In its materiality assessment, Arjo studies the company’s business activities andrelationships and its sustainability context and stakeholders in the value chain. The
materiality assessment is confirmed and approved by Arjo’s Management Team andBoard of Directors.
In 2023, Arjo performed an annual review of its materiality assessment to ensure thatno material changes had taken place that could affect the company’s sustainability
agenda. This review did not reveal any material changes and a­ ccordingly the materiality assessment from 2022 remains unchanged.
In the first quarter of 2024, Arjo will conduct a double materiality assessment inaccordance with the CSRD. The result of it will be described in the annual and sustainability report for the year when the reporting requirement for CSRD enters into force.

Arjo’s material topics:• Product quality andsafety• Purchasing/supplier base

• Compliance, ethics and­anti-corruption• Greenhouse gas emissions
and energy efficiency­improvements• Occupational health andsafety• Human capital and fair labor
conditions• Circularity in product design

A R J O 202 3 S U S TA I N A B I L I T Y R EP O R T

22

ARJO’S SUSTAINABILITY WORKSUSTAINABILITY NOTES

MATERIALITY ASSESSMENT

Stakeholder dialogue
Arjo’s stakeholder dialogue is an important part of themateriality assessment process and aims to ensurethat the Group lives up to external expectations. Stakeholders are regularly engaged in dialogue and in 2023
Arjo conducted surveys among employees, suppliersand customers to obtain feedback on sustainability.
Arjo’s sustainability function is in continuous contact
with stakeholders to evaluate the company’s impact
throughout the value chain.
Stakeholder dialogues provide valuable insights into
the views of external parties on Arjo’s sustainability
agenda and priorities, and enhance the Group’s current
understanding of prioritized topics. Feedback from thecompany’s stakeholders is crucial to the success of its
sustainability efforts.

Stakeholders

Prioritized topics

Dialogue channels

Customers

Sustainable and safe products and services that­contribute to the customers' sustainability targets

Individual meetings, training, trade fairs, etc. via thesales and service organization

Business ethics and compliance
Climate impact
Shareholders andfinanciers

Corporate governanceTransparent and relevant reporting
Business ethics and compliance

Financial reporting and sustainability reporting­including capital markets days
Regular meetings and teleconferences forquarterly reports and year-end reports

Climate impact
Employees
and future employees

Corporate culture

Annual People Survey

Healthy and safe work environment

Cooperation with trade unions, Board employee­representatives, European Workers Council (EWC)

Diversity, equity and inclusion
Leadership and career opportunities

Continuous dialogue and feedback between managers
and employees
Communication via channels including intranet,­meetings and global training platform

Suppliers andbusiness partners

Business ethics
Product quality and safety
Human rights and fair labor conditions

Regular meetings on strategic, technical andcommercial solutions and regulatory compliance
Review of Code of Conduct for
suppliers and other business partners.
Supplier assessments and audits

Authorities anddecision-makers

Compliance with rules and laws

Audits of regulatory compliance

Climate impact

Audits of certifications and quality management
systems
Industry associations

A R J O 202 3 S U S TA I N A B I L I T Y R EP O R T

23

ARJO’S SUSTAINABILITY WORKSUSTAINABILITY NOTESARJO'S IMPACTS

Impacts and actions in the value chain
Arjo's degreeof influence

The table describes Arjo’s value chain, Arjo's degree of influence, actual
impact in each part of the value chain and activities to manage impacts.

ImpactActivities

High• Environmental and climate impact from materials in thecompany’s products and the energy consumption of the
products.

• Product development follows the process for EcoDesign at every stage, from concept to finished product.
• Frameworks will be developed to integrate circularity throughout the business and the value chain.
• New standardized measurement method for the energy efficiency of products.
• Increased cooperation between supply chain and product development functions to identify and replace
hazardous substances.
• Life cycle assessment of Arjo’s process enabling the reuse of VTE garments (Arjo ReNu).

Purchasing

Moderate• Environmental and climate impact from manufacturingof components in supplier base.
• Human rights and fair labor conditions for workers in the
supply chain.

• Code of Conduct for suppliers and business partners as part of Arjo’s standard contract.
• Implementing IT systems for collecting sustainability data from suppliers.
• Implementing IT systems for risk assessment, identification and management of corruption risks throughout
the ­value chain.
• Pilot study to test process for assessing sustainability risks in the supplier base, including fair labor conditions,human rights and the environment.
• Program for identifying and reporting SVHCs (Substance of Very High Concern) in purchased materials.

Production

High• Environmental and climate impact of operating and­heating the Group’s facilities.
• Human rights and fair labor conditions for Arjo’s employees.
• Occupational health and safety for Arjo’s employees.

• Transfer to renewable electricity in warehouses and production facilities.
• Energy-efficiency enhancements by optimizing ventilation and cooling systems in the company’s facilities, suchas offices, production sites and service facilities.
• Identifying opportunities to reduce the total amount of waste and increase the share of recycled or reused­materials.
• Reducing the volume of hazardous waste and identifying alternatives for SVHCs.
• Increased focus on occupational health and safety with in-depth training and follow-up. Pilot study for internal
audits of occupational health and safety.

• Environmental and climate impact of transporting
components and the company’s products.
• Human rights and fair labor conditions for workers in the
supply chain.

• Internal program to optimize and improve efficiency of transportation and closer partnerships with carriers.
• Reduced use of air freight in favor of lower-emission land and sea transport.
• Expanded resources for developing packaging and logistics that generate lower emissions.
• Improved filling ratio in packaging and transportation.
• Implementation of transactional data (weight, distance, volume), which provides higher precision of carbon
calculations.
• Code of Conduct for suppliers and business partners now integrated into all transport contracts.

Research& development

Transportation

Moderate

Service, rental& salesHigh• Environmental and climate impact of operating and heating
the Group’s facilities, and chemicals for cleaning and reusing
products.
• Occupational health and safety for Arjo’s employees.
• Human rights and fair labor conditions for Arjo’s employees.

• Arjo’s offering for reprocessing single use medical devices is now also available in Australia.
• Increased focus on occupational health and safety with internal audits of service facilities and training of service
personnel.
• Increasing the use of renewable electricity in properties.

Usage

Low

• Environmental and climate impact of electricity from theuse of Arjo’s products, and chemicals for cleaning products.

• Training in architecture tool for planning healthcare environments including ergonomic use of Arjo’s products.
• Ongoing measures to improve energy efficiency of the company’s products.

End-of-life

Low• Environmental and climate impact of recycling materials
and landfill.

• Evaluation of dismantling instructions for products and continuous dialogue for phasing out unwanted substances
to improve recycling possibilities.

A R J O 202 3 S U S TA I N A B I L I T Y R EP O R T

24

ARJO’S SUSTAINABILITY WORKSUSTAINABILITY NOTES

A sustainable offering
Arjo’s Sustainability Framework and environmental and climate policy describe
the Group’s ambitions regarding environmental and climate issues, such asprotecting the environment, reducing greenhouse gas emissions and promoting a circular economy.
The Group’s total greenhouse gas emissions (scope 1, 2 and 3) were analyzed
in 2022–2023 to establish reduction targets aligned with the Paris Agreement.
The goals was submitted for validation by the Science Based Targets initiativein September 2023 and in February 2024, the goals were approved.
Arjo’s targets are to reduce the company’s greenhouse gas emissions in its
own operations (scope 1 and 2) by 50 percent by 2030 and reduce greenhousegas emissions in the value chain by 25 percent by 2030. Both targets have 2021
as the base year.
A number of changes have been made to this year’s sustainability ­reporting,as outlined below:• The scope 1 and 2 category Energy and related emissions now include all of
Arjo’s facilities.
• The scope 3 category Upstream transportation and distribution has been
divided into two categories and includes all upstream transportation anddistribution. Previously reported global transportation has been recalculated
and greenhouse gas calculations are now based on ton-kilometers. Transportation in sales and services has been added and the greenhouse gas
emission calculations are based on cost.
• The scope 3 categories Use of sold products and Purchased goods andservices have been identified as material and are now included in thereporting.
• The scope 3 category Business travel is not included in the reporting since it
has not been deemed to be material in the mapping of Arjo’s total emissions.
Arjo applies a restrictive travel policy which clearly states that virtual meetings
are to be prioritized. The company will continue to track and work to keep
emissions from business travel at a low level.
Arjo’s calculations of energy consumption and emissions follow the Greenhouse Gas Protocol Corporate Accounting and Reporting Standard and theGroup reports greenhouse gases as carbon dioxide equivalents (CO2e). All
greenhouse gas emissions are consolidated from units over which Arjo has
operational control.

DISTRIBUTION BETWEEN SCOPE 1, 2 AND 3

DISTRIBUTION OF SCOPE 3 CATEGORIES

Scope 1, 7%
Scope 2, 2%
Scope 3, 91%

Purchased goods and services 61%
Upstream transportation and distribution 17%
Use of sold products 14%
Other non-material categories 8%

The pie chart on the left shows the distribution of Arjo’s total greenhouse gas emissions (scope 1, 2 and 3) for the baseyear 2021. Total greenhouse gas emissions for the base year 2021 are 323,059 tons CO2e. The pie chart on the right shows
the distribution of scope 3 emissions. The categories of Purchased goods and services, Upstream transportation and distribution and Use of sold products account for 92 percent of total scope 3 emissions. Other non-material categories accountfor 8 percent and include the following categories: Capital goods, Fuel and energy-related activities, Waste, Business travel,
Employee commuting, Downstream transportation and distribution, End-of-life treatment of sold products, Downstream
leased assets and Investments. Three categories were not deemed applicable to Arjo: Upstream leased assets, Processingof sold products and Franchises.

Arjo reports greenhouse gas emissions
according to the GHG Protocol
Scope 1
Fuel-related emissions from facilities and vehicles

Scope 2
Electricity, heating and cooling from facilities

Scope 3
The following categories are reported:
1. Purchased goods and services
4. Upstream transportation and distribution
11. Use of sold products

Reduction in scope 1 & 2
greenhouse gas emissions-11%
Arjo has reduced the Group’s greenhouse gas emissions from its own
operations (scope 1 and 2) by 11
percent since the base year 2021.

A R J O 202 3 S U S TA I N A B I L I T Y R EP O R T

25

ARJO’S SUSTAINABILITY WORKSUSTAINABILITY NOTESA SUSTAINABLE OFFERING

Greenhouse gas emissions throughout the value chain
Scope 1 (tons CO2e) – direct emissions

2023

2022

2021

Natural gas

2,118

2,546

2,181

Oil/diesel

124

175

46

Vehicle fuel19,146

21,10019,170Total scope 1 – direct emissions

21,38823,821

21,397

Scope 2 (tons CO2e) – indirect emissions
Electricity (market-based)

2,639

3,705

5,841

Solar power electricity

0

0

0

District heating

64

63

24

Electricity vehicles

47

23

2

2,750

3,791

5,867

Upstream transportation and distribution

35,23445,55749,817

Use of sold products

34,38834,15541,386

Purchased goods and services

143,504

171,415

180,599

Total scope 3 – indirect emissions

213,126

251,127

271,802

Total scope 2 – indirect emissions
Scope 3 (tons CO2e) – indirect emissions

Target by 2030

50%

Reduction of greenhouse gas emissions from the company’s own operations (scope 1 and 2) by 50 percent
by 2030, with 2021 as the base year.

25%
Reduction of greenhouse gas emissions in the value
chain (scope 3) by 25 percent by 2030, with 2021 as
the base year. The most material scope 3 categories are
Purchased goods and services, Upstream transportationand distribution and Use of sold products.

The estimated reduction in scope 1 and 2 emissions is a combination of factors such as increased use of renewable electricity and reduced emissions from thecompany’s fleet of vehicles. The estimated reduction in scope 3 emissions is a combination of factors such as changes to sales and purchasing volumes, in the
product mix and transportation methods. No significant changes were identified of other scope 3 indirect emissions. The emissions are estimated to be about
8 percent of the measured greenhouse gas emissions and are related to the categories Downstream transportation and distribution, Business travel, Waste, etc.
These ­other indirect emissions are not included in the reporting, but internal targets exist for some activities, including the Business Travel category.

A R J O 202 3 S U S TA I N A B I L I T Y R EP O R T

26

ARJO’S SUSTAINABILITY WORKSUSTAINABILITY NOTESA SUSTAINABLE OFFERING

Greenhouse gases and energy in Arjo’s own operations (scope 1 & 2)
Emissions from Arjo’s own operations (scope 1 & 2) mainly derivefrom energy consumption at the Group’s facilities and fromvehicles, and represent a minor share (9 percent) of Arjo’s total
greenhouse gas emissions.
Energy and greenhouse gas emissions for all of the Group’s
facilities are reported from 2023. Emissions from production
facilities that were reported in prior years are included in the­reporting and have not been recalculated.
The information is based on data reported by each facility andis collected quarterly for the facilities and every six months forvehicles.

The energy consumption reported below is based on Arjo’s total
consumption and includes energy for heating or cooling theGroup’s facilities. A small amount of diesel is used to generate electricity during power cuts. Arjo is undertaking targeted
actions to reduce the risk of power cuts and reduce emissions
by installing solar panels. A small number of facilities currently
have solar power electricity owned by the property owner, whichmeans that Arjo has not sold any solar power.

Total energy consumption at Arjo’s facilities
Energy (MWh)

2023

2022

2021
(base year)

Natural gas

11,524

13,816

11,835

Oil

217

371

126

Diesel for generators

212

224

24

District heating/cooling

602

574

161

17,854

18,68917,775

157

236

0

30,56533,91029,921

Solar power electricity
Total energy (MWh)Previously reported data for Arjo’s factories is included in the total and has not beenrecalculated. The total for factories is 7,661 MWh.

Scope 2 (tons CO2e)– indirect emissions

33% renewable energy
67% non-renewable energy

Electricity
Solar electricity

2)

District heating
Total scope 2– indirect emissions

Renewable energy sources
Renewable energy (%)

Energy consumption at Arjo’s facilities

Electricity

Percent of renewable energy in facilities 2023

2023

2022

2021

33

28

5

Percentage of renewable energy

Greenhouse gas emissions from Arjo’s facilities
The greenhouse gases reported are based on Arjo’s total energy
consumption in its own facilities. Certified renewable electricity
represents 33 percent of the company’s electricity consumption(in kWh) and the climate impact is calculated to be 0 g/kWh formarket-based electricity.

Greenhouse gas emissions from facilities
Scope 1 (tons CO2e) – directemissions

2023

2022

2021
(base year)

Natural gas

2,118

2,546

2,181

Oil

69

118

40

Diesel

55

57

6

2,242

2,721

2,227

Total scope 1 direct emissions

2023

2022

2021
(base year)

Marketbased1)/
Locationbased

Marketbased/
Locationbased

Marketbased/
Locationbased

2,639/6,808

3,705/7,155

5,841/6,657

0

0

0

64

63

24

2,703/6,808

3,768/7,155

5,865/6,657

The emission factors are country-specific. The sources are:Natural gas DEFRA(2022), Oil DEFRA (2021), Diesel DEFRA 2022, Electricity
AIB(2020) IEA(2021), District heating/cooling Swedenergy (2020).
1. Market-based renewable electricity is certified renewable electricity.
2. Solar power electricity production is not owned by Arjo and Arjo does not sell solar
power electricity.
Arjo does not use carbon offsets to reduce emissions.
Arjo does not use bioenergy.
Previously reported data for Arjo’s factories is included in the total and has not beenrecalculated. Total greenhouse gas emissions from factories in scope 1: 318 tons CO2e,
scope 2 Market-based: 318 tons CO2e, scope 2 Location-based: 3,261 tons CO2e.

2023 is the first year that Arjo reports greenhouse gas emissions
for all facilities in the Group. Certified renewable energy was purchased during the year to help reduce greenhouse gas emissions
for market-based electricity.

Greenhouse gas emissions from vehicles
Arjo’s Global Fleet Directive contains guidelines and principles
concerning the company’s fleet of vehicles to ensure that it iscost-efficient, has a low climate and environmental impact and issafe. Greenhouse gas emissions from Arjo’s vehicles (owned andleased) are based on reported fuel consumption and data fromcar manufacturers.
For 54 percent of the vehicles, scope 1 greenhouse gas emissions are calculated based on reported fuel consumption. For
the remaining vehicles (46 percent), the calculations are basedon the car manufacturers’ data on greenhouse gas emissions per
kilometer and include both scope 1 and 3. Efforts are being madeto improve the collection of data to harmonize reporting.
A R J O 202 3 S U S TA I N A B I L I T Y R EP O R T

27

ARJO’S SUSTAINABILITY WORKSUSTAINABILITY NOTESA SUSTAINABLE OFFERING

Greenhouse gas emissions in the value chain (scope 3)

Greenhouse gas emissions and energy in Arjo’s own operations (scope 1 & 2), cont.

Greenhouse gas emissions from vehicles
Scope 1 & 2 (tons CO2e)– direct and indirect emissions

2023

2022

2021
(base year)

Vehicle fuel, scope 1

19,146

21,10019,17047

23

219,193

21,123

19,172

Electricity, vehicles, scope 2
Total Vehicles

Scope 1 greenhouse gas emissions from leased or owned vehicles are calculated in
two ways: 1. Multiplying the contracted mileage by CO2 emission factors per vehicle
from the vehicle manufacturer. 2. by actual fuel consumption. 54 percent currently
report actual fuel consumption and emission factor per type of fuel. The target is for
all vehicles to report using method 2. The source of emission factors for fuel is WTW
Swedish Energy Agency Swedish Fuel Quality Act (2019 & TTW Swedish Environmental
Protection Agency emission factors and calorific values, 2020).

Greenhouse gas emissions from Arjo’s vehicles have been
reduced compared with last year. This was due to more electricand hybrid cars in the fleet and improved reported data for actual
fuel consumption. Data for the base year has been recalculated
and differs from previous reporting (for 2021, 22,000 tons CO2e)
since the data was imported to the global reporting system andthe conversion factors differ slightly.

Greenhouse gas emission intensity
Intensity figures for scope 1 and 2
in relation to net sales and numberof employees

2023

2022

2021
(base year)

Intensity in relation to net sales(tons CO2e/SEK M)

2

2.8

3.0

Intensity in relations to numberof employees (CO2e/numberof employees)

3.6

4.0

4.2

Reduction of greenhouse gas
emissions in relation to base year
Scope 1 & 2 emissions (%)

2023

2022

2021
(base year)

-11

1

—

The mapping of Arjo’s total greenhouse gas emissions showedthat 91 percent derive from the value chain (scope 3). The mostmaterial GHG categories are Purchased goods and services, Upstream transportation and distribution and Use of sold products.
In this year's report, these three categories are included and thepreviously reported category Business travel is excluded since it
is no longer considered material.

Purchased goods and services
The majority of Arjo’s scope 3 emissions come from the category
Purchased goods and services. These are mainly raw materials forcomponents for the company’s products. Metal and ­plastic are
Arjo’s most commonly used materials and account for the majorityof emissions in the Purchased goods and services category. A
program to reduce the environmental and climate impact in thevalue chain was initiated in 2023. Read more in the Responsible
purchasing section on page 32.

Greenhouse gas emissions from Purchased
goods and services

Upstream transportation and distribution
Transporting products and components to customers worldwide
is a critical part of Arjo’s value chain. During the year, the company worked on a number of initiatives to reduce the impact oftransportation, such as improving the filling ratio in packaging,
optimizing and consolidating intercontinental and continental
transport flows and closer cooperation with carriers to jointly
find new solutions to reduce emissions.
Arjo also conducted training sessions with transport providers
on its Code of Conduct for suppliers and other business partners
and sent out a survey to map the carriers’ sustainability efforts.
This mapping helps Arjo to make well-founded decisions regarding the choice of carriers, which by extension is expected to help
further reduce emissions. The company has also worked on
developing the level of detail in transportation data to improvereporting.

Greenhouse gas emissions from Upstream
transportation and distribution
Scope 3 (tons CO2e)– indirect emissions

Scope 3 (tons CO2e) – indirectemissions

2023

2022

2021
(base year)

Purchased goods and services

143,504

171,415

180,599

Source of emission factors: National Agency for Public Procurement (2021)

Greenhouse gas emissions related to the category of Purchased
goods and services are calculated based on cost. The emissions
reduction in 2023 was mainly related to the reduction of metalpurchases. Arjo has identified the key impact areas in theGroup’s value chain and in 2024, Arjo will conduct a more indepth analysis to improve reporting. Dialogue and collaboration
with the company’s suppliers has commenced to gain access toprimary data and to set detailed reduction targets.

2023

2022

2021

Upstream transportation anddistribution (calculation
based on ton-kilometers)

19,97032,229 35,242

Upstream transportation anddistribution (calculation based on cost)

15,264

13,328

14,57535,234 45,557

49,817

Total Upstream transportation anddistribution

The source of the emission factors is NTM 2021 and Quantis 2021.

A R J O 202 3 S U S TA I N A B I L I T Y R EP O R T

28

ARJO’S SUSTAINABILITY WORKSUSTAINABILITY NOTESA SUSTAINABLE OFFERING

Waste and recycling

Greenhouse gas emissions in the value chain (scope 3), cont.

The reporting of the Upstream transportation and distribution category was changed in 2023 and now also includes thecompany’s sales and service units. In the past, the company’s global
transportation function based emissions calculations on cost. In
2022, data started to be collected based on ton-kilometers and2023 is the first year that calculations are based on ton-kilometers.
Data for 2021 and 2022 are retroactively calculated estimates
based on transportation data that the company has compiled in
2022–2023. Arjo’s service and sales units still calculate emissions
from transportation based on cost. To ensure consistent reportingof transportation emissions, reporting will be centralized.
Arjo reduced its share of air freight in 2023, which resulted inlower emissions. In 2024, work will continue to improve the quality of data by standardizing reporting for all entities in the Groupand by training relevant staff.

During the year, Arjo calculated the total energy consumptionof the use of sold products over the expected life span of the
products. The amounts were recalculated as greenhouse gas
emissions and will comprise the 2021 baseline with the targetof reducing energy consumption and thus emissions. This work
resulted in a joint measuring method for the energy consumptionof different products that will be enhanced and standardized in
2024.
It will also support customers’ sustainability targets by improving energy efficiency and reducing greenhouse gas emissions.

Greenhouse gas emissions from Use of soldproducts
Scope 3 (tons CO2e) – indirectemissions
Use of sold products

Use of sold products
Arjo’s product development follows the principles for EcoDesign
at every stage, from concept to finished product. Product development is based on the Group’s environmental and climate policy,
quality policy and follows the regulatory requirements that apply
to medical devices.
Arjo has carried out life cycle assessments for two productsin the past, and another life cycle assessment was conducted
in 2023. The results identified several sustainability-related improvement areas, one of which is the energy consumption fromwhen customers use the sold products.

2023

2022

2021
(base year)

34,38834,15541,386

Emission factor for the CO2 calculation is country-specific location-based, source
IEA 2021, AIB 2021.

The decrease in greenhouse gas emissions in the Use of soldproducts category from 2021 to 2022 was mainly due to a change
in the product mix. From 2024 onwards, Arjo will develop its
reporting and clarify actual improvements.

Packaging material
Arjo’s products are appropriately packaged to ensure that the
products can be handled and transported safely. Arjo’s goal isto reduce the total amount of packaging, increase the share ofrecyclable packaging and increase the share of reused material
in packaging.

Total amount of packaging from production
2023

2022

2021
(base year)

Cardboard

849

1,072

813

Plastic

115

57

34

Wood

1,435

1,529

1,227

Total weight packaging material

2,398

2,658

2,074

Packaging material (ton)The amount of packaging material is compiled based on reporting from each production unit on a quarterly basis.

Percentage of renewable packaging in relation to total
amount of packaging (tons)
Percentage (%)

2023

2022

2021
(base year)

Share of renewable packaging
material

95%

98%

98%

A R J O 202 3 S U S TA I N A B I L I T Y R EP O R T

29

ARJO’S SUSTAINABILITY WORKSUSTAINABILITY NOTESA SUSTAINABLE OFFERING

Waste and recycling, cont.

Total waste from production
Arjo’s goal is to reduce the percentage of waste that goes tolandfill and incineration by 50 percent by 2030, with 2021 as
the base year. Most of Arjo’s waste comes from the company’s
production facilities. Waste management is continuously
developed according to the waste hierarchy which is based on
the principle of minimize, reuse and recycle materials.
Continuous improvements are made at Arjo’s production
facilities to reduce the share of waste. This includes improving
material efficiency and initiating collaborations with othercompanies to reuse, for example, textile waste. In 2023, work
continued to identify opportunities to reduce the total amountof waste and increase the share of recycled or reused waste.
Hazardous waste amounted to 1.4 percent and mainly comprised chemical packaging, light sources and oils. The workof reducing hazardous waste and identifying alternatives for
those chemicals considered to be substances of very highconcern (SVHC) is constantly in progress. Arjo’s production
facilities are ISO 14001 certified and have processes for safe
chemicals management and waste management. Waste is
managed in accordance with local regulations and rules.
The data presented below are based on reported data fromproduction and are compiled centrally every quarter. The data
are primarily based on information from waste management
contractors at each facility. All waste is managed off-site by
an approved waste management contractor except for certain
textiles that are reused via partnership with a third party.

Total amount of waste from production per category
2023
Type ofwaste (tons)

2022

Total
amountof waste

Waste toreuse andrecycling2021 (base year)

Waste tolandfills andincineration

Total
amountof waste

Waste toreuse andrecycling

Waste tolandfills andincineration

Total
amountof waste

Waste toreuse andrecycling

Waste tolandfills andincineration

Cardboard

427

427

0

502

502

0

443

443

0

Textiles

88

13

74

275

13

262

252

9

243
128

Plastic

237

101

135

300

144

156

229

101

Metal

56

56

0

109

109

0

94

94

0

Wood

234

195

39

68

68

0

38

38

0

Other nonhazardous
waste

250

19

231

138

20

118

123

31

92

Hazardous
waste

18

6

11

14

3

11

39

8

31

1,309

817

491

1,405

858

547

1,218

723

495

Total amountof waste(tons)

Arjo reports waste efficiency based on total amount of wastefrom production in relation to net sales and the share of reused
and recycled materials in relation to the total amount of wastefrom production. The share of hazardous waste is reported inrelation to total amount of waste.

Waste by treatment methodWaste to landfill/incineration, 38%
Waste to reuse/recycling, 62%

Efficiency figures for amount of waste in relation to
net sales
Intensity figures for amount ofwaste in relation to net sales

2023

2022

2021
(base year)

Tons waste/SEK M

0.12

0.14

0.13

Share of reusable and recyclable waste
Share of reusable andrecyclable waste
Waste, %

2023

2022

2021
(base year)

62

61

59

Waste from production is compiled every quarter based on reporting from eachproduction unit. Hazardous waste classified and managed in accordance with local
regulations.

A R J O 202 3 S U S TA I N A B I L I T Y R EP O R T

30

ARJO’S SUSTAINABILITY WORKSUSTAINABILITY NOTES

A responsible company
Business ethics
Arjo’s Business Compliance Committee leads and coordinatesbusiness ethics and compliance in the Group, and makes decisions on Arjo’s business ethics strategy. The Committee comprises the President & CEO (Chairman), EVP Legal & Business
Compliance (Vice Chairman), CFO, EVP Communication & PR,
EVP HR & Sustainability, Director Internal Control and additional members appointed as needed. VP Business Compliance is
responsible for the day-to-day administration of compliance andserves as secretary for the Committee. Documented meetings
are to be held regularly, and four meetings were held in 2023.
Two support committees have previously been established in
North America to meet local regulatory requirements. They continued to develop and improve the organization’s compliance activities in each market. In 2023, the Canadian Support Committee
held three documented meetings and the US Support Committee
held four documented meetings.
Arjo works actively with risk assessments to identify and manage corruption risks within the entire organization. As a result of
this process, during which some material risks were identified,Arjo decided to continuously review and monitor its distributors
in certain countries and regions. In addition to the global process,regular risk assessments are carried out in North America, forexample by analyzing potential conflicts of interest. Suitablefollow-up measures are taken based on the outcome of each risk
assessment process.

Policies, directives and processes
Arjo’s process for evaluating and screening business partners
was reviewed at the end of 2023. A new and improved analysis
and monitoring tool was implemented and the existing due
diligence and screening process will be regularly improved. Thisis an important process for minimizing risks of contact with inappropriate entities and individuals.

By including examples and scenarios in the Anti-Corruption­ irective and the company’s ethical guidelines, particular supD
port is given for contacting business partners. In response tocompliance with local regulatory requirements, Arjo launchedlocal policies in North America in 2023. These were implemented by arranging local training courses.

Training
To provide a common basic understanding of Arjo’s anti-corruption rules, all employees in managerial positions, and employees
who have regular contact with business partners must complete
at least one anti-corruption training session every year. An updated digital anti-corruption training course was launched at theend of the fourth quarter of 2023. It requires a digital signatureand is available in 12 different languages to include all target
groups. The participation rate at year-end was more than 50
percent and implementation will continue in 2024. In addition tothis course, other targeted training is also available for different
markets. In 2023, Arjo also focused on training distributors in
Latin American. Furthermore, the company conducted training
sessions for distributors in Japan and South Korea.
Arjo’s Code of Conduct for suppliers and other business
partners covers multiple areas including business ethics andcorruption, and is part of standard contracts for distributors andsuppliers alike.

Monitoring
Arjo continued to review and develop the company’s global process
for evaluating and screening distributors and intermediaries interms of business ethics and anti-corruption. The focal point in
2023 was North America and one of the processes in particular
was tested and evaluated during the year. The aim was to control
target realization and further improve an already well-functioning
process. The outcome was positive and resulted in only minor
adjustments to make further improvements to the process.

Incidents and whistleblowing
Arjo encourages employees and other stakeholders to communicate any observed or suspected misconduct in terms of compliance, either directly to their manager, local HR or to the company’s
compliance function. Misconduct can also be reported anonymously via a whistleblowing service in the form of a secure
external website that is also available to external parties.
Arjo acknowledges that it can be difficult to decide to reporta suspicion and therefore the company is committed to protect
employees who file a report in good faith. No employee is to be
subject to harassment, retaliations or negative consequences intheir employment due to filing such report.
To further facilitate the procedure of processing compliancerelated questions in North America, at the end of 2022, a phone
hotline was introduced that is available alongside the online
whistleblowing channel.
Misconduct in compliance includes corruption, violation ofcompetition laws, serious risks to the environment, health andsafety, violation of laws, treaties or other forms of agreements
and all other observed or suspected violations of laws or Arjo’s
Code of Conduct.
A total of 30 incidents were reported in 2023, including one
case of fraud and one case of conflict of interest. Two employees
were dismissed from the company due to behavior that violated
the Group’s Code of Conduct. Neither of these individuals held amanagerial position and the incidents had no significant impact
on the company’s operations. The other 28 incidents were addressed and handled in accordance with established investigative
procedures. One incident is still under investigation. There is no
ongoing corruption-related case against Arjo in court. Also, Arjo
has not been forced to terminate any agreement with a business
partner due to corrupt actions by the partner.

A R J O 202 3 S U S TA I N A B I L I T Y R EP O R T

31

ARJO’S SUSTAINABILITY WORKSUSTAINABILITY NOTESA RESPONSIBLE COMPANY

Arjo's Code of Conduct
Goal

2023

2022

2021

Incidents and whistleblowing

N/A

30

14

—

New employees who have completed training and accepted
Arjo’s Code of Conduct

100%

80%

85%

86%

Arjo aims for all new employees to be trained in the company’s
Code of Conduct within three months of starting their employment.
This applies to all employees regardless of their position in theorganization. The training course is digital, and for employees
who do not have access to their own computer, such as production staff, the course is held in a class room or computers are lentout. An action plan is being developed to increase the share of
new employees being trained in the Group’s Code of Conduct.

Responsible purchasing
Arjo works actively to manage its impact from the supply chain.
A program was launched at the end of 2022 to screen suppliers
focusing on climate and environmental impact, social responsibility and other sustainability risks. The aim of the program is tomaintain a high level of business ethics by identifying, managing
and, where possible, preventing risks in the supply chain. The
first screenings were conducted on site at selected suppliers in
2023 and the results are being used to develop plans together
with suppliers to reduce impacts throughout the value chain.
The process of informing the company’s suppliers about theCode of Conduct for suppliers and other business partners continued during the year. 91 percent of suppliers of direct materials
signed the Code of Conduct for suppliers and other business
partners, which indicates that a large number of suppliers share
Arjo’s values and view of ethical business methods.
Arjo has initiated a program to track and replace chemicals that
could have a serious impact on human health and the environment(SVHCs). The aim is to reduce the amount of SVHCs for safe production, use and recycling of the products in accordance with the
RoHS/REACH Directive.

Arjo’s Code of Conduct for suppliers andother business partners
By 2030, 97% of Arjo’s total purchases of direct materials are to
be made from suppliers who havesigned Arjo’s Code of Conduct
for suppliers and other business
partners

Goal

2023

2022

2021

97%

91%

91%

95%

Arjo’s quality management and product compliance function
maintains Arjo’s global quality management systems. This has
been established with six multi-site quality management system
certificates issued by the regulatory body BSI:
• ISO 9001

Arjo works continuously to increase the percentage of purchasesof direct materials from suppliers who have signed the company’s
Code of Conduct for suppliers and other business partners.
The number of suppliers who signed the Code of Conduct increased during the year. The outcome varies over time since thetarget is based on purchasing volume. Low volume suppliers havea limited impact on the outcome. During the year, it was primarily
low volume suppliers that were contracted.

Product quality and safety
Medical devices are strictly regulated in all countries where Arjo
conducts business. The company’s product range is subject tostrict regulatory requirements from, for example, the EU and the
US Food and Drug Administration (FDA), medical device regulations and related quality system requirements. These include
extensive requirements on assessments, quality assurance andproduct documentation. The majority of Arjo’s medical devices
have a low-risk profile (risk classification 1).
Arjo’s quality policy is to deliver well-designed and safe products, with a high degree of clinical and ergonomic efficiency. The
company is to follow regional, national and international regulatory requirements for product and management systems.

Compliance standards and controls
Arjo devotes significant efforts and resources to implementing
and applying processes to ensure regulatory compliance. To meetthe growing demands and expectations within the medical device
industry, the company is directing its focus on continuously­evaluating and improving products and processes.

• ISO 13485• EU Medical Device Directive (MDD)• EU Medical Device Regulation (MDR)• Medical Device Single Audit Program (MDSAP) covering medical
devices in the US, Canada, Australia, Japan and Brazil• UK Conformity Assessment (UKCA) covering the UK Medical
Device Regulation (UK MDR)
The certificates show that policies, directives and processes
in the company’s global quality management system meet thesupervisory requirements in regulatory standards and laws.
ISO 9001 certification is voluntary, while other global certifications are required for regulatory purposes. Internal audits andaudits by external regulatory bodies and audit organizations are
conducted annually at both local and company level to ensurecompliance with policies and standards and for continued certification and CE marking.
The deviations identified in internal and external audits in 2023
are assessed, analyzed and corrected to both address the deviation and to prevent recurrence.
This led to improvements during the year in such areas asmonitoring and implementing changes relating to standards andregulations and how the company maintains technical productdocumentation, including clinical evaluations. No major deviations were noted in external audits and inspections of the quality
management system in 2023.
In 2023, Arjo continued its efforts to comply with the EU MDR
that came into force in May 2021. Arjo’s class Im products andclass II systems for intermittent pneumatic compression and
A R J O 202 3 S U S TA I N A B I L I T Y R EP O R T

32

ARJO’S SUSTAINABILITY WORKSUSTAINABILITY NOTESA RESPONSIBLE COMPANY

Incidents of regulatory non-compliance

Quality and environmental certifications 2023
Globalcertifications

Certification of production units

ArjoHuntleigh AB

Suzhou,China

Poznan,PolandMagog,
CanadaSan Cristobal,
Dominican
Republic

Cardiff,
UK

ISO 9001

X

X

X

X

X

X

ISO 13485

X

X

X

X

X

X

MDSAP

X

X

X

CE (MDD)

X

X

X

X

X

X

CE (EU MDR)

X

X

X

X

X

X

Certificate

Unit

UKCA (UK MDR)
ISO 14001

X

X

X

X

X

X

X

X

X

X

X

X

pressure area management were MDR certified in 2021. Activities
continued in 2022 and 2023 to ensure that the requirements of
the MDR on technical documentation were met. Arjo was issued
an updated MDR certificate at the end of 2023, encompassing all
product groups that Arjo planned to transition to the MDR.

Product quality improvements
Processes are established in Arjo’s global quality management
systems for monitoring and managing customer complaints toensure that inquiries, root cause analysis and investigations arecarried out in order to continuously improve product quality processes, address any negative side effects of products criticizedby the market and serve as input for the development of new
products.
Customer complaints received from the market are registeredin a global database. The central Complaint & Vigilance function
ensures that complaints are investigated and trend analyses
carried out for all product groups at regular intervals to serve asa basis for assessing health and safety effects, maintaining product risk management files and product quality improvements.

2023

2022

2021

Incidents resulting in fines, sanctions or warnings
issued by authorities related to customer healthand safety, or health and safety aspects of Arjo’s
products and services, and due to non-compliancewith quality management system requirements as
defined by the standards, laws and regulations on
which the global QMS certificates held by ArjoHuntleigh AB are based.

1

0

0

Major deviations during external quality management system inspections or audits

0

0

0

Number of safety-related field actions initiated

3

1

4

The field actions are reported by a corporate function that coordinates all field actions following a process in the
global quality management system. The data for incidents and major deviations are reported by each legal entity
in Arjo and compiled centrally every quarter. There were zero cases of non-compliance with voluntary codes in
2023.

This function also ensures that the obligations in terms of post
market surveillance and in medical device reporting to the relevant authorities are fulfilled.
Health and safety effects are continuously assessed to improve
all of the company’s products and solutions. This is part of theclinical assessments and risk assessments carried out in product development and in the post market surveillance process.
Such evaluations are required by current market regulations,
including the EU MDR that applies to CE marked products. 90
percent of the products that Arjo manufactures are CE marked.
A global quality board assesses any needs for field actions basedon a health risk assessment as well as supplementary analyses,
updates and verifications. If field actions are initiated, they arecoordinated by a global field action manager in cooperation withthe manufacturing sites delivering the technical solutions and thesales and service organization.

Incidents of regulatory non-complianceArjo investigates and analyses all cases of non-compliance in order to correct any shortcomings and prevent them from repeating.

Three instances of field actions (reports and corrections) related
to product safety were initiated during the year. They resulted inmessages being sent to customers to inform them of the issue/
risk in question and what preventive measures can be taken until
the root cause is resolved. These field actions were reported to
the relevant authorities and the notified body BSI.

Established process for ethical marketing
Arjo markets the company’s products and solutions in accordancewith high ethical and regulatory standards as well as applicablelegal requirements. The activities are governed by Arjo’s Codeof Conduct, quality policy and the directive for design and development of customer solutions that describes the procedure forthe development of sales and marketing material, as well as theapproval process for all external material containing statements
regarding products or performance. Both internal and external
audits are carried out regularly to ensure compliance with policies and standards. All relevant staff receive training in Arjo’s
ethical guidelines for interaction with business partners andhealthcare professionals.
A R J O 202 3 S U S TA I N A B I L I T Y R EP O R T

33

ARJO’S SUSTAINABILITY WORKSUSTAINABILITY NOTESAn attractive employer
Diversity, equity and inclusion
Arjo’s Code of Conduct and Directive for Diversity, Equity andInclusion describes the company’s standpoint, processes andprocedures for creating a workplace where every employee istreated fairly and in a non-discriminatory manner. Compliance isensured locally and followed up by Arjo’s global team and steering committee that meet once a month to monitor implementation of the directive. Arjo arranges regular training courses and the
HR function supports the organization in the areas of diversity,
equity and inclusion.

Number of employees per
region, gender and age group2023
Region/age

2022

Women

Men

Total

Women

Men

Total

15-29

178

203

381

—

—

—

30-49

734

1,154

1,888

—

—

—

≥50

450

926

1,376

—

—

—

EuropeNorth America
15-29

40

93

133

—

—

—

30-49

199

395

594

—

—

—

≥50

183

407

590

—

—

—

Other
15-29

306

199

505

—

—

—

30-49

555

483

1,038

—

—

—

≥50

139

154

293

—

—

—

2,784 4,014

6,798

2,900

4,024

6,924

Total

The number of employees by region, gender and age group is based on data from theglobal HR system SuccessFactors as of December 31, 2023.

Arjo’s People Survey showed positive results in response toquestions on diversity and inclusion. The question of whether
diversity was a high priority at Arjo had a score of 8.2 out of 10.
The question of whether Arjo’s recruitment process contributes
to diversity in the organization had a score of 8.2 out of 10. The
question of whether employees believe that Arjo takes action on
any cases of discrimination was added in 2023. The score for thisquestion was 8.5 out of 10.
Using Arjo’s assessment processes and global development
programs, the company works actively to give all employees at
all levels the chance to grow and develop. This work is based on
systematic succession planning and competence mapping. At anindividual level, follow-up and planning take place through regular
discussions between employees and managers.

specific training concerning matters such as the company’s quality management system, design process and ethical marketing.
This training includes virtual courses via a digital platform.
Arjo has a global talent program with a nomination process to
identify participants who have potential to favorably contributeto the development of the company. This program brings together 20–30 employees each year who take on a development
project. The results were reported to the relevant function andto the Arjo Management Team and several of the projects havebeen implemented in the organization. Internal mentors are also
appointed to the program participants through Arjo’s global
mentorship program. A decision was made in 2023 to pause theprogram and instead focus on individual talent development inexisting and new talent pools.

Share of women per category

Full-time/part-time employees per region and gender
2023

2023

2022

2021

Percentage of women, total

41%

42%

40%

Region/age

Percentage of female managers insenior positions1)

37%

34%

38%

EuropePercentage of women in the Management Team

50%

50%

50%

Percentage of women on the Board of
Directors

29%

29%

29%

1. Senior positions pertains to level 1-3 managerial roles under the President & CEO.

2022

Women

Men

Total

Women

Men

Total

Full time

1,215

2,215

3,430

—

—

—

Part time

147

68

215

—

—

—

Full time

417

885

1,302

—

—

—

Part time

5

10

15

—

—

—

North America

Human capital

Other

There is a global recruitment process that includes assessment
tools for specialist and managerial roles to ensure that the company hires the right competence based on business needs andvalues. All new employees complete a global induction process
to learn about the company’s vision, strategy, functions and value-creating solutions. The induction program for new employees
also includes compulsory training in Arjo’s Guiding Principles,
and the company’s Code of Conduct, policies and directives.
Employees in key positions are provided with additional, function-

Full time

982

821

1,803

—

—

—

Part time

18

15

33

—

—

—

2,614 3,921

6,535

2,729

3,933

6,662

Total full time
Total part time
Total

93

263

171

91

262

2,784 4,014

170

6,798

2,900

4,024

6,924

The number of employees by degree of employment, gender and region is based ondata from the global HR system SuccessFactors as of December 31, 2023.

A R J O 202 3 S U S TA I N A B I L I T Y R EP O R T

34

ARJO’S SUSTAINABILITY WORKSUSTAINABILITY NOTESAN ATTRACTIVE EMPLOYER

Employees by type of employment, region and gender
2023
Type ofemployment

Women
Region/age group

Women

Men

Total

Women

Men

Total

Permanent
employment

2,631

3,851

6,482

Europe

1,228

2,154

3,382

—

—

—

North America

421

887

1,308

—

—

—

Other

982

810

1,792

—

—

—

2,661 3,836

9.20%

0.00%

318

15-29

23

15.70%

36

Turnover
9.60%

20.70%

0.00%

59

18.40%
8.90%

30-49

55

8.60%

98

9.10%

0.00%

154

50+

43

11.10%

62

7.20%

0.00%

105

8.40%

North America

53

13.00%

136

15.60%

1

100.00%190

14.80%

1

36.10%

100.00%5136.20%

0.00%

87

14.90%

427

50+

16

9.30%

36

9.40%

0.00%

52

9.40%

—

—

Other

111

11.60%

98

12.40%

0.00%

209

12.00%

—

—

15-29

43

14.00%

41

20.60%

0.00%

84

16.60%

—

30-49

64

11.90%

49

10.70%

0.00%

113

11.30%

50+

5

4.10%

8

6.00%

0.00%

13

5.10%

Total

286

11.20%

430

11.40%

100.00%717

11.30%

263

—

1

8

9

—

6,798

196

16.60%

129

4,014

10.30%

35

134

2,784

Number65

Europe

—

121

Total
Turnover11.40%

188

44

EuropeNumber

34.50%

239

26

Turnover

15

316

18

Number

22

163

Other

Other

Turnover

15-29

153

North America

6,497

Men

Number30-49

Fixed-term
employment

Total

Staff turnover (voluntary)

2022

—

2,900 4,024

6,924

1

The number of employees by type of employment, gender and country is based on datafrom the global HR system SuccessFactors as of December 31, 2023.

Workers who are not employees
Total FTEs per region

2023

Europe270

North America

171

Other

230

Total

672

The number of employees has been recalculated as full-time equivalents (FTEs). All
employee data was taken from the global HR system as of December 31, 2023. Workers who are not employees and whose work is controlled by the organization include
consultants in such areas as IT, rental or production activities and finance.

The table shows the turnover of permanent employees recalculated as FTEs on a rolling 12-month basis, which means that thisis an average for 2023. Staff turnover is continuously analyzed
and monitored by global and local teams. The data is also
regularly shared with relevant stakeholders on a monthly andquarterly basis.

People Survey
Arjo’s annual People Survey gives every employee the opportunity to provide feedback about what it is like to work at Arjo.
An analysis of the results forms the basis for perpetual work on
action plans to foster engagement in both individuals and teams,
but also to retain talent and skills within the company.

Percentage of participants in the annual
People Survey
Percentage of participants inthe annual People Survey

2023

2022

2021

89%

88%

89%

A R J O 202 3 S U S TA I N A B I L I T Y R EP O R T

35

ARJO’S SUSTAINABILITY WORKSUSTAINABILITY NOTESAN ATTRACTIVE EMPLOYER

Occupational health and safety
Occupational health and safety at Arjo is based on the Group’s
global directive and occupational health and safety manual,
and it applies to all Arjo workplaces and both employees andconsultants. These documents are based on work environment
legislation and describe the key elements of Arjo’s occupational
health and safety management system.
Each legal entity at Arjo is responsible for implementing procedures and processes that comply with the global directive
and the occupational health and safety manual. The entities are
responsible for following the requirements of local laws and regulations.
Arjo has appointed local, dedicated work environment representatives and committees comprising employees from different
functions and levels to carry out risk assessments and audits thatenable needs-based action to be taken at every site. The committees were tasked with ensuring implementation, follow-up andcontinuity in efforts to integrate health and safety into the work
culture. Local activities are reported centrally twice a year. A
joint global committee featuring representatives from the various
markets has been established to share knowledge.
At local level, health and safety representatives arrange training with all employees. Contractors and employees also receivea safety introduction and crisis management training. Occupational health and safety is regularly discussed at group meetings
and all employees receive the necessary training so that they
can perform their duties in a safe, efficient and correct manner,in accordance with Arjo’s rules and requirements. Arjo reports
notifiable accidents to local authorities. All local sites record
incidents and accidents and these are compiled centrally. The
company complies with local laws and regulations on privacy and
the GDPR. A program of internal occupational health and safety
audits has been initiated with pilot screenings at two sites. The

program includes training for the employees who will performthe audits. In 2024, the program will be implemented at four
additional sites with the aim of rolling it out to all of the Group’s
sites within three years.
The data for inspections and corrective actions is reported byeach legal entity in a global reporting system and compiled forcentral follow-up twice a year. Each site is responsible for following Arjo’s occupational health and safety manual and rectifying
any shortcomings.

Total number of incidents and accidents

Workplace inspections and corrective measures

Human rights and fair labor conditions

Target for
2030

2023

2022

2021

Percentage of planned
inspections completed1)

100%

92%

89%

91%

Percentage of corrective
measures completed

100%

87%

80%

81%

0

1.4

1.6

1.8

Accidents per 100 employees

1. The data for percentage of planned inspections completed and corrective action wasincorrectly placed in the same table in the 2022 Annual and Sustainability Report.
This data has been placed correctly in this year’s Annual and Sustainability Report.

Goal

2023

2022

2021

N/A

211

286

117

Accidents with minor
consequences

0

107

108

140

Accidents with major
consequences

0

3

3

12

Fatalities

0

0

0

0

Incidents

During the year, a policy on human and labor rights was
prepared and approved by Arjo’s Board of Directors. The policy
describes Arjo’s position and commitments to ensure that thecompany complies with international principles on human rights
and fair labor conditions.
Arjo is a signatory of the UN Global Company and has a Codeof Conduct that is structured in accordance with the four focus
areas of human rights, labor, the environment and anti-corruption.

The data for incidents and accidents is reported by each legal
entity in a global reporting system and compiled for central
follow-up twice a year. The reported incidents considered to benear accidents are at a high level, which shows that incidents
are reported and that Arjo can therefore develop its preventive
actions.
The number of accidents with minor consequences is at thesame level as last year and most accidents are related to physicaland safety-related hazards.
Three accidents with more serious consequences occurred
during the year. All three were reported to the authorities.

A R J O 202 3 S U S TA I N A B I L I T Y R EP O R T

36

ARJO’S SUSTAINABILITY WORKSUSTAINABILITY NOTESWork based on international
principles and global initiatives

Arjo’s Sustainability Framework and Code of Conduct
are based on international
principles and acknowledged
global initiatives, such as:• UN Global Compact – Arjo supports andfollows the ten principles that apply tohuman rights, labor, the environment
and anti-corruption.
• UN Climate Agreement – the Paris
Climate Agreement.
• OECD Guidelines for Multinational
Enterprises• International Labour Organization (ILO)– The UN’s labor organization for workand employment issues.
• UN Sustainable Development Goals– on the basis of Arjo’s materiality
assessment, the company has chosen topresent its sustainability activities in relation to the seven most relevant SDGs.

Good health and well-being

Improving general health for patients and­residents, as well as work conditions for caregivers, is at the very core of Arjo’s business.

Quality education

Access to high quality education for all is one ofthe primary premises for prosperity, health andequal opportunities. Arjo has a long traditionof targeted advisory and training initiatives forhealthcare professionals. Further, the company
supports a research project within the Swedish
Industry for Quality Education in India that
­focuses on improving education opportunities
for children in grade school.

Gender equality

Arjo values the company’s employees and­advocates fairness, gender equality and nondiscrimination. The company’s goal is to cultivate
a diverse and inclusive workplace that maximizes every employee’s talent, potential and­contribution by providing equal opportunities
for all.

Decent work conditions and economic growth

The correlation between employee health, safetyand development is central in the company’s
operations, and is backed by Arjo’s Directive for
Occupational Health and Safety. It emphasizes
the importance of sound work conditions and ahealthy work-life balance.

Responsible consumption and production

Collaborating throughout the value chain to
reduce environmental impact is central to global
health in the long term. Arjo endeavors to constantly reduce the company’s environmental
impact and ensure a more effective use ofresources.

Climate action

Climate change has already a considerable
adverse impact on global health, and efforts
to reduce greenhouse gas emissions are paramount to realizing the goal of good health forall. Arjo has set goals to reduce the Group’s
carbon emissions that are in line with the Paris
Climate Agreement, and encourages suppliers
and other business partners to do the same.

Peaceful and inclusive societies

Arjo assumes a major ethical responsibility for
employees, customers and partners. Businessethics and well-defined principles for compliance are the foundation of Arjo’s long-termbusiness relations. The company continues tostrive for ultimate business ethics on all levels
and to ensure that compliance is part of thedaily work.

A R J O 202 3 S U S TA I N A B I L I T Y R EP O R T

37

ARJO’S SUSTAINABILITY WORKSUSTAINABILITY NOTESEU Taxonomy
The taxonomy is an EU regulation established to identify environmentally sustainable economic activities that are in line with
the EU’s sustainability targets for 2030. The purpose is to help
investors and other stakeholders to compare investments basedon a classification system. The base is a selection of economic
activities that are listed in the taxonomy.

The taxonomy stipulates that an
economic activity qualifies as sustainable if it:
1. Makes a substantial contribution to one or more of the­following six environmental objectives:a) Climate change mitigationb) Climate change adaptationc) The sustainable use and protection of water and marine
resourcesd) The transition to a circular economye) Pollution prevention and controlf) The protection and restoration of biodiversity andecosystems.
2. Doing no significant harm to any of the other environmental
objectives
3. Carried out in compliance with the minimum safeguards as
stipulated in Article 18 of the Taxonomy Regulation

Approach
In order to identify Taxonomy-eligible activities, Arjo continued
to pursue activities in the team appointed in 2022. With support
from external experts, the team has analyzed the company’s economic activities and investments, and mapped these against theTaxonomy Regulation and its delegated acts. The environmental
objectives and activities added in 2023 have been analyzed.
Data was collected from all Group units via a digital platform.
The collected data has then been analyzed in detail to examine
if the activities are Taxonomy-eligible and, if so, whether they are
Taxonomy-aligned.
An analysis has been made of whether activity 1.2 Manufactureof electrical and electronic equipment in the environmental objective Transition to a circular economy is applicable to Arjo, butsince guidelines and the Directive are unclear regarding who andwhat it should be applied to, the activity was not considered applicable in 2023. Arjo is awaiting clarification and new directives
from legislators regarding how this activity is to be applied, andwhich products and industries it is to be applied to. Follow-up willtake place in 2024.

Results

TurnoverThe Group’s main operations in the form of manufacturing
medical devices has been evaluated and it was concluded thatthe activity is not eligible as one of the economic activities definedin the Taxonomy and therefore the eligible turnover is 0 percent.
For total turnover, see Note 2 Segment reporting.

CapEx
According to the analysis conducted, the following CapEx (capital
expenditure) fell under the taxonomy:

Activity according to
the taxonomy’s definition

Environmental Examples ofobjective
CapEx:

5.2 Renewal of watercollection, treatment
and supply systems

CCA1), CCM

Investments inwater tanks

6.5 Transport by motorbikes,
passenger cars and lightcommercial vehicles

CCA, CCM1)

Right-of-use
related to cars

7.3 Installation, maintenanceand repair of energy efficiency CCA, CCM1)
equipment

Installation of
LED lights and air
conditioning

7.4 Installation, maintenanceand repair of charging stations for electric vehicles inbuildings (and parking spaces
attached to buildings)

CCA, CCM1)

Investments incharging stations

7.7 Acquisition and ownershipof buildings

CCA, CCM1)

Right-of-use
assets related to
offices and plants

1. Indicates which environmental objective the activity is allocated to.

CapEx under the Taxonomy has been allocated to the environmental objective to which the activity primarily contributes, since
the Taxonomy does not allow double counting.
In order for CapEx to be classified as Taxonomy-aligned, notonly are they to substantially contribute to one or more of theestablished environmental objectives, but they are also to do no
significant harm to any other environmental objective and comply with minimum safeguards.
Arjo’s team has opted for a strict interpretation of the requirement for due diligence in terms of human rights throughout thevalue chain. Arjo has a Code of Conduct that is structured inaccordance with the four focus areas identified in the UN Global
Compact (human rights, labor, the environment and anti-corruption) and in which all employees receive training and sign. Arjo
has several programs within the framework of the UN Global
Compact, and works continuously on development, training and

A R J O 202 3 S U S TA I N A B I L I T Y R EP O R T

38

ARJO’S SUSTAINABILITY WORKSUSTAINABILITY NOTESTAXONOMY

follow up of business ethics, health and safety and the environment
in the value chain. More information about Arjo’s sustainability
framework, ambitions and activities can be found on pages 3-37.
In addition to the company’s Code of Conduct, Arjo has a separate Code of Conduct for suppliers and other business partners,
which is a requirement for all of Arjo’s suppliers of direct materials and other business partners. In 2023, the company started
working to gain acceptance for the Code of Conduct for suppliers
and other business partners also from indirect suppliers, butsome work remains to be done before this is considered to bein place. Based on a strict interpretation of the minimum safeguards, Arjo has deemed that the company at present does notmeet the minimum safeguards and thus cannot report any activities that are Taxonomy-aligned in 2023.
In 2023, Arjo implemented a supplier sustainability audit program to proactively identify, analyze and mitigate ESG-relatedrisks among suppliers. Arjo has conducted pilot audits with positive results in the fourth quarter of 2023. The sustainability audit
included screening of environmental management systems, thehandling of chemicals, waste management, occupational healthand safety, working conditions, human rights and governance.
The audit also included examining policies, documents, conducting interviews with employees and evaluating overall sustainability efforts. After the audit, the conclusions were presented to theManagement Team and sent to the supplier. Any deviations areclosely monitored until they have been corrected.

Nuclear and fossil gas related activities
Nuclear energy related activities

Yes/NoThe undertaking carries out, funds or has exposures to research, development, demonstration and deployment of innovative electricity generation facilities that produce
energy from nuclear processes with minimal waste from the fuel cycle.

No

The undertaking carries out, funds or has exposures to construction and safe operationof new nuclear installations to produce electricity or process heat, including for the
purposes of district heating or industrial processes such as hydrogen production, as
well as their safety upgrades, using best available technologies.

No

The undertaking carries out, funds or has exposures to safe operation of existing nuclear
installations that produce electricity or process heat, including for the purposes of district
heating or industrial processes such as hydrogen production from nuclear energy, as wellas their safety upgrades.

No

Fossil gas related activities

Yes/NoThe undertaking carries out, funds or has exposures to construction or operation ofelectricity generation facilities that produce electricity using fossil gaseous fuels.

No

The undertaking carries out, funds or has exposures to construction, refurbishment, andoperation of combined heat/cool and power generation facilities using fossil gaseous
fuels.

No

The undertaking carries out, funds or has exposures to construction, refurbishment andoperation of heat generation facilities that produce heat/cool using fossil gaseous fuels.

No

Proportion of CapEx contributing
substantially to several objectives
Proportion of CapEx/
Total CapEx
Taxonomy-aligned
per objective

Taxonomy-eligible
per objective

OpEx

CCM

0%

0%

The Group’s OpEx as defined in the EU taxonomy has been
analyzed. It was concluded after the analysis that the operations
did not have any OpEx in 2023 that are eligible as one of theeconomic activities defined in the Taxonomy and therefore theeligible OpEx is SEK 0 M.

CCA

0%

0%

WTR

0%

0%

CE

0%

0%

PPC

0%

0%

BIO

0%

0%

A R J O 202 3 S U S TA I N A B I L I T Y R EP O R T

39

ARJO’S SUSTAINABILITY WORKSUSTAINABILITY NOTESTAXONOMY

Proportion of turnover from products or services associated with Taxonomy-aligned economic activities

Fiscal year 2023

Y/N

Y/N

Y/N

Minimum safeguards

Y/N

Biodiversity and ecosystems

Y/N

Pollution

Y;N;
N/EL

Circular economy

Y;N;
N/EL

Water and marine resources

Y;N;
N/EL

Climate change adaptation

Y;N;
N/EL

Climate change mitigation

Y;N;
N/EL

Biodiversity and ecosystems

Circular economy

Y;N;
N/EL

Pollution

Water and marine resources%

Climate change adaptation

Proportion of turnover

SEK M

Climate change mitigation

Absolute turnover, year 2023

Code(s)Economic activities

DNSH criteria(‘Does Not Significantly Harm’)

Substantial contribution criteria

Y/N

Y/N

Taxonomy-aligned(A.1) or
Taxonomy-eligible(A.2) proportion of
turnover in 2022

Category(enabling activity)%

E

Category(transitional activity)

T

A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1 Environmentally sustainable activities(Taxonomy-aligned)
Turnover of eligible taxonomy-aligned
activities (A.1)

—

—

—

Of which Enabling

—

—

—

Of which Transitional

—

—

—

A.2 Taxonomy-Eligible but not environmentally sustainable activities (notTaxonomy-aligned activities)
EL; N/EL

EL; N/EL

EL; N/EL

EL; N/EL

EL; N/EL

EL; N/
EL

Turnover of Taxonomy-eligible but notenvironmentally sustainable activities(not Taxonomy-aligned activities) (A.2)

—

—

—

Total (A.1 + A.2)

—

—

—

Turnover of non-eligible activities (B)10,980100

Total (A+B)

10,980100

B. TAXONOMY-NON-ELIGIBLE ACTIVITIESDefinition of turnover

The key performance indicator for total revenue have been defined as revenue from the normal business operations recognized in accordance with IFRS 15.

A R J O 202 3 S U S TA I N A B I L I T Y R EP O R T

40

ARJO’S SUSTAINABILITY WORKSUSTAINABILITY NOTESTAXONOMY

Proportion of CapEx from products or services associated with Taxonomy-aligned economic activities
Fiscal year 2023

DNSH criteria(‘Does Not Significantly Harm’)

Substantial contribution criteria

Y/N

Y/N

Y/N

Y/N

Minimum safeguards

Y/N

Biodiversity and ecosystems

Y;N;
N/EL

Pollution

Y;N;
N/EL

Circular economy

Y;N;
N/EL

Water and marine resources

Y;N;
N/EL

Climate change adaptation

Pollution

Y;N;
N/EL

Climate change mitigation

Circular economy

Y;N;
N/EL

Biodiversity and ecosystems

Water and marine resources%

Climate change adaptation

Proportion of CapEx

SEK M

Climate change mitigation

Absolute CapEx, year 2023

Code(s)Economic activities

Y/N

Y/N

Taxonomy-aligned(A.1) or
Taxonomy-eligible(A.2) proportion of
CapEx in 2022

Category(enabling activity)%

E

Category(transitional activity)

T

A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1 Environmentally sustainable
activities (Taxonomy-aligned)
CapEx of eligible taxonomy-aligned
activities (A.1)

—

—

—

Of which Enabling

—

—

—

Of which Transitional

—

—

—

A.2 Taxonomy-Eligible but not environmentally sustainable activities (notTaxonomy-aligned activities)
EL; N/EL

EL; N/EL

EL; N/EL

EL; N/EL

EL; N/EL

EL; N/
EL

Renewal of water collection, treatment
and supply systems

CCM
& CCA
5.2

0

0

EL

EL

N/EL

N/EL

N/EL

N/EL

—

Transport by motorbikes, passenger cars
and light commercial vehicles

CCM
& CCA
6.5

0

0

EL

EL

N/EL

N/EL

N/EL

N/EL

0

Installation, maintenance and repairof ­energy efficiency equipment

CCM
& CCA
7.3

0

0

EL

EL

N/EL

N/EL

N/EL

N/EL

0

Installation, maintenance and repair ofcharging stations for electric vehicles inbuildings (and parking spaces attached tobuildings)

CCM
& CCA
7.4

1

0

EL

EL

N/EL

N/EL

N/EL

N/EL

0

Acquisition and ownership of buildings

CCM
& CCA
7.7

0

0

EL

EL

N/EL

N/EL

N/EL

N/EL

0

CapEx of Taxonomy-eligible but notenvironmentally sustainable activities (notTaxonomy-aligned activities) (A.2)

1

0

0

Total (A.1 + A.2)

1

0

0

CapEx of Taxonomy-non-eligible activities
(B)

957

100

Total (A+B)

958

B. TAXONOMY-NON-ELIGIBLE ACTIVITIESDefinition of CapEx

The key performance indicator for CapEx comprises the total of all investments for the year in tangible assets, intangible assets and right-of-use assets
according to IFRS 16 (see notes 12-14).
100

A R J O 202 3 S U S TA I N A B I L I T Y R EP O R T

41

ARJO’S SUSTAINABILITY WORKSUSTAINABILITY NOTESTAXONOMY

Proportion of OpEx from products or services associated with Taxonomy-aligned economic activities
Fiscal year 2023

DNSH criteria(‘Does Not Significantly Harm’)

Substantial contribution criteria

Y/N

Y/N

Minimum safeguards

Y/N

Biodiversity and ecosystems

Circular economy

Y/NPollution

Water and marine resources

Y;N;
N/EL

Climate change adaptation

Y;N;
N/EL

Climate change mitigation

Circular economy

Y;N;
N/EL

Biodiversity and ecosystems

Water and marine resources

Y;N;
N/EL

Pollution

Climate change adaptation

Proportion of OpEx%

Climate change mitigation

Absolute OpEx, year 2023

Code(s)

SEK M

Y/N

Y/N

Taxonomy-aligned(A.1) or
Taxonomy-eligible(A.2) proportion of
OpEx inyear 2022

Category(enabling activity)

Category(transitional activity)

Fiscal year 2023

Economic activities

Y;N;
N/EL

Y;N;
N/EL

Y/N

%

E

T

A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1 Environmentally sustainable activities(Taxonomy-aligned)
OpEx of eligible taxonomy-aligned
activities (A.1)

—

—

—

Of which Enabling

—

—

—

Of which Transitional

—

—

—

A.2 Taxonomy-Eligible but notenvironmentally sustainable activities(not Taxonomy-aligned activities)
EL; N/EL

EL; N/EL

EL; N/EL

EL; N/EL

EL; N/EL

EL; N/
EL——

0

OpEx of Taxonomy-eligible but notenvironmentally sustainable activities(not Taxonomy-aligned activities) (A.2)

—

—

0

Total (A.1 + A.2)

—

—

0

OpEx of Taxonomy-non-eligible activities
(B)

293

100

Total (A+B)

293

100

Installation, maintenance and repairof ­energy efficiency equipment

CCM
& CCA
7.3

B. TAXONOMY-NON-ELIGIBLE ACTIVITIESDefinition of OpEx

Total OpEx comprises direct non-capitalized costs for research and development (R&D), building renovation, short-term leases, maintenance andrepairs, and other direct costs required for the efficient day-to-day operation of tangible assets.

A R J O 202 3 S U S TA I N A B I L I T Y R EP O R T

42

ARJO’S SUSTAINABILITY WORKSUSTAINABILITY NOTESGRI Content Index

Statement of use

Arjo has reported in accordance with the GRI
Standards for the period January 1, 2023 – December
31, 2023

GRI 1 used

GRI 1 Foundation 2021

Applicable GRI Sector Standard(s)No applicable GRI Sector Standards were available
for reporting 2023 data
DeviationGRI Standard

Disclosure

Location*

2-1

Organizational details

2-3, 49, 158

2-2

 ntities included in the organization’sE­sustainability reporting

110, 148-149

2-3

Reporting period, frequency and contact point

154

2-4

Restatements of information

110, 114-118

2-5

External assurance

110

2-6

 ctivities, value chain and other businessA­relationships

3, 5, 7, 20-25, 30-31,
112, 113

2-7

Employees

123

2-8

Workers who are not employees

124

2-9

Governance structure and composition

49-58, 110

2-10 omination and selection of the highestN­governance body

50-52

2-11

Chair of the highest governance body

51-52

Requirement(s)omittedReasonExplanation

2-7, b iii

Not applicable

Arjo does not report non-guaranteed hourly­ mployees since no such employee relationshipseexist.

2-9 vi

Legal prohibitions

Arjo does not report facts about underrepresentedsocial groups. The collection of such information is
not permitted under Swedish law.

General disclosures
GRI 2: General disclosures 2021

* All page references refer to Arjo's complete Annual and Sustainability report.
A R J O 202 3 S U S TA I N A B I L I T Y R EP O R T

43

ARJO’S SUSTAINABILITY WORKSUSTAINABILITY NOTESGRI CONTENT INDEX

DeviationGRI Standard

Disclosure

Location*

Requirement(s)omittedReasonExplanation

2-12

 ole of the highest governance body inR­overseeing the management of impacts

49-56, 110

2-12 b

The informationis unavailable orincomplete

Arjo has opted for a strict interpretation of therequirement for due diligence of human rights
throughout the value chain. Arjo has a Code of
Conduct that is structured in accordance withthe four focus areas of human rights, labor, theenvironment and anti-corruption. Arjo has several
programs within the framework of the UN Global
Compact, and works continuously on development,
training and follow up of business ethics, health andsafety and the environment in the value chain.

2-13

 elegation of responsibility for managing
D
impacts

49-56, 110

2-14 ole of the highest governance body inR­sustainability reporting

49-56, 110

2-15

Conflicts of interest

52

2-16

Communication of critical concerns

52, 54

2-16 b

Confidentiality
restrictions

The total number and nature of critical concerns
communicated to the Board of Directors during theyear are not communicated externally.

2-17

 ollective knowledge of the highestC­governance body

50-52

2-18

 valuation of the performance of the highestE
governance body

50-53

2-18 a, c

Confidentiality
restrictions

Arjo does not report any action taken on the evaluation of the Board's work other than recommendations from the Nomination Committee regarding
proposals for the composition of the Board.

2-19Remuneration policies

65-67

2-20

Process to determine remuneration

50, 542-21

Annual total compensation ratio

62-64

2-21

The informationis unavailable orincomplete

Arjo follows Swedish practice for remuneration
reports, which contain similar information asprescribed by GRI. The presentation of key­performance indicator is not exactly as prescribedby GRI.

2-22

Statement on sustainable development
strategy

8-10

2-23

Policy commitments

37-39, 49, 110, 125,
126
Arjo’s ESG index canbe found at www.
arjo.com

2-23 aThe informationis unavailable orincomplete

Arjo has opted for a strict interpretation of therequirement for due diligence of human rights
throughout the value chain. Arjo has a Code of
Conduct that is structured in accordance with thefour focus areas identified in the UN Global Compact(human rights, labor, the environment and anti-­
corruption) that all employees are trained in, andsign upon completion. Arjo has several programs
within the framework of the UN Global Compact,
and works continuously on development, training
and follow up of business ethics, health and safety
and the environment in the value chain.

* All page references refer to Arjo's complete Annual and Sustainability report.
A R J O 202 3 S U S TA I N A B I L I T Y R EP O R T

44

ARJO’S SUSTAINABILITY WORKSUSTAINABILITY NOTESGRI CONTENT INDEX

DeviationGRI Standard

Disclosure

Location*

2-24

Embedding policy commitments

37-39, 49-56, 110,
120, 121, 125

2-25

Processes to remediate negative impacts

37-39, 120-122

2-26

 echanisms for seeking advice and raisingM
concerns

120

2-27

Compliance with laws and regulations

37-39, 120-122

2-28

Membership associations

29

2-29

Approach to stakeholder engagement

112

2-30

Collective bargaining agreements

41

3-1

Process to determine material topics

32, 111-112

3-2

List of material topics

32, 111

GRI 3: Material topics 2021

3-3

Management of material topics

37-39, 120-121

GRI 205: Anti-corruption 2016205-1

 perations assessed for risks related toO­corruption

205-2

Requirement(s)omitted2-27 b, dReasonExplanation

The informationis unavailable orincomplete

Arjo discloses significant cases of non-compliancewith laws and regulations on the indicated pages
but does not disclose the monetary value of fines
or provide a breakdown of instances to cover all
standard requirements.
Member of Swecare and Swedish Medtech.

2-30

The informationis unavailable orincomplete

Arjo acknowledges the right to collective bargaining
negotiations and agreements, and follows local
regulations in all countries of operation but does notcollect country-specific information about collective
agreements at global level.

120205-1 a, b

The informationis unavailable orincomplete

Corruption risks are assessed but not at a detailed
level stipulated under 205-1 a and the share of theoperations assessed for risks related to corruption
was not available for 2023.

 ommunication and training about anti-­C
corruption policies and procedures

37-39, 120-121

205-2

The informationis unavailable orincomplete

Arjo has not collected sufficiently detailed datafor 2023 and does not report the number, share or­region of senior employees trained in anti-corruption.

205-3

 onfirmed incidents of corruption and actions
C
taken

120

3-3

Management of material topics

34-36, 114-118

305-1

Direct (scope 1) greenhouse gas emissions

116-117305-2

Energy indirect (scope 2) greenhouse gas
emissions

116

Material topics:
GRI 3: Material topics 2021

Anti-corruption

Emissions
GRI 3: Material topics 2021

* All page references refer to Arjo's complete Annual and Sustainability report.
A R J O 202 3 S U S TA I N A B I L I T Y R EP O R T

45

ARJO’S SUSTAINABILITY WORKSUSTAINABILITY NOTESGRI CONTENT INDEX

DeviationGRI Standard

Disclosure

Location*305-3

Other indirect (scope 3) greenhouse gas
emissions117-118

305-4

Greenhouse gas emissions intensity

117

305-5

Reduction of greenhouse gas emissions

117

GRI 3: Material topics 2021

3-3Management of material topics

40-43, 123-125

GRI 401: Employment 2016

401-1

New employee hires and employee turnover

123-124

Requirement(s)omittedReasonExplanation

Employment

Occupational health and safety
GRI 3: Material topics 2021

3-3Management of material topics

40-43, 125

GRI 403: Occupational healthand safety 2018403-1

 ccupational health and safety managementOsystem125

403-2

 azard identification, risk assessment, andH
incident investigation

125

403-3

Occupational health services

—

403-3

The informationis unavailable
or incomplete

Workers’ access to occupational health services
varies between countries and is governed locally.
Aggregated data is not available.

403-4

 orker participation, consultation, andW­communication on occupational health andsafety125403-4 b

The informationis unavailable
or incomplete

Occupational health and safety committee meetings
are planned and held locally and aggregated dataon the number of meetings is not available.

403-5

 orker training on occupational health andWsafety125403-6

Promotion of worker health

—

403-6

The informationis unavailable orincomplete

Workers’ access to non-occupational health services
and health and medical care services varies between
countries and is governed locally. Aggregated data
is not available.

403-7

 revention and mitigation of occupationalP
health and safety impacts directly linked bybusiness relationships

121

403-7

The informationis unavailable orincomplete

Arjo does not collect any information on occupational
health and safety in the value chain. For information
on Arjo’s work on screening suppliers based on­environment and occupational health and safety,
see the section Responsible purchasing, page 121*.

403-8

 orkers covered by an occupational healthWand safety management system

121, 126403-9

Work-related injuries

125

403-9

The informationis unavailable orincomplete

Arjo reports incidents and accidents for employees
and non-employees jointly. Arjo does not reporttime worked or the percentage of accidents/­
incidents. Arjo plans to report work-related risks forhigh consequence accidents in the future.

* All page references refer to Arjo's complete Annual and Sustainability report.
A R J O 202 3 S U S TA I N A B I L I T Y R EP O R T

46

ARJO’S SUSTAINABILITY WORKSUSTAINABILITY NOTESGRI CONTENT INDEX

DeviationGRI Standard

Disclosure

Location*

Requirement(s)omittedReasonExplanation

Diversity and Equal Opportunity
GRI 3: Material topics 2021

3-3

Management of material topics

40-43, 123

GRI 405: Diversity and Equal
Opportunity 2016405-1

Diversity of governance bodies and employees

123

GRI 3: Material topics 2021

3-3

Management of material topics

38, 121-122

GRI 416: Customer health andsafety 2016416-1

 ssessment of the health and safety impacts
Aof product and service categories

121-122416-2

Incidents of non-compliance concerning thehealth and safety impacts of products
and services

121-122

Customer health and safety* All page references refer to Arjo's complete Annual and Sustainability report.
A R J O 202 3 S U S TA I N A B I L I T Y R EP O R T

47

ARJO’S SUSTAINABILITY WORKSUSTAINABILITY NOTES

Auditor’s report on thestatutory sustainability report
It is the board of directors who is responsible for the statutory
sustainability report on pages 3–47 and that it has been preparedin accordance with the Annual Accounts Act.

Standards on Auditing and generally accepted auditing standards
in Sweden. We believe that the examination has provided us with
sufficient basis for our opinion.

Our examination has been conducted in accordance with FAR’s
auditing standard RevR 12 The auditor’s opinion regarding thestatutory sustainability report. This means that our examination of
the statutory sustainability report is substantially different and lessin scope than an audit conducted in accordance with International

A statutory sustainability report has been prepared.
Öhrlings PricewaterhouseCoopers AB was appointed auditorof Arjo AB (publ) by the general meeting of the shareholders
on the 20 April 2023 and has been the company’s auditor since
21 December 2016.

Malmö on the day shown by our electronic signatureÖhrlings PricewaterhouseCoopers AB
Cecilia Andrén Dorselius
Authorized Public Accountant
Auditor in charge

Vicky Johansson
Authorized Public Accountant

A R J O 202 3 S U S TA I N A B I L I T Y R EP O R T

48

Arjo’s journey began with entrepreneur and founder Arne Johansson in 1957. When hecame to understand the burden his wife experienced in her work as a nurse, he had foundhis mission in life – to develop equipment that makes it safer to handle patients. The first
Arjo products then saw the light of day, followed by many, many more. Today, our solutions
help improve mobility in care settings around the world, and drive healthier outcomes foreveryone involved.
For more than 65 years, we have had a close cooperation with healthcare providers, giving
us an in-depth understanding of their daily challenges. Together, we strive to minimize
patient challenges such as loss of muscle strength, blood clots, pressure injuries, falls,
anxiety and depression as well as work-related injuries among staff. Our products andsolutions for patient handling, hygiene, disinfection, diagnostics, treating leg ulcers,
prevention of pressure injuries and blood clots, and our medical beds, are all designed topromote mobility, safety and dignity in all care situations.

Arjo AB · Org.Nr. 559092-8064 · Hans Michelsensgatan 10 · SE-211 20 Malmö · Sweden
www.arjo.com

ARJO IS EMPOWERING MOVEMENT in healthcare to drive healthieroutcomes for people facing mobility challenges.