Our role in the value chain
Integrating responsible business practices is an essential part of how we do business, and how we deliver business value. We address our impacts in relationships throughout the value chain, as producer and distributor, an employer as well as in our role as a market participant. Since 2018 our approach to sustainability has been through the lens of three pillars.
Our role as distributor represents approximately 80 percent of our sales. Sourcing raw material and production lies largely with a third-party. Our impact on the environment is therefore mainly indirect. We work with suppliers whose production facilities are located all over the world. Through well-established relationships with these partners, we aim to positively influence their thinking across areas such as material choice, product development, logistics and efficient production, human and labor rights and business ethics. We monitor risks by supplier evaluation and encourage change through close dialogues
In our role as producer, which corresponds to approximately 20 percent of sales, we can control the supply chain and choice of material to a greater degree.
Our subsidiaries are responsible for obtaining and delivering the products they sell. Consequently, efficient logistics and warehouse management are essential, which helps both reduce environmental impact and increase profitability.
The dedication of each employee makes AddLife’s success possible. We offer all employees the opportunity to grow, to thrive and to be challenged. As employers, we take responsibility for creating a safe and positive work environment. We want to attract and retain employees who support our core values and who have the right skills to grow our business. Our employees are continually trained in our corporate culture and can hone their business skills through the courses offered at our business school, AddLife Academy.
As a market participant, it is important for us to maintain high ethical conduct. All our employees have a duty to understand and reflect expectations as outlined in our Code of Conduct in their work and relationships with others. We also expect our suppliers to respect internationally recognised principles of business conduct that cover environmental protection, human and labour rights, business ethics and workplace health and safety. Compliance with our code of conduct is evaluated in ongoing contractual relationships.
Each subsidiary is responsible for its own business activities within the context of the requirements for growth, profitability and sustainable development as set by the Group. Our decentralized model, which is part of our DNA, also entails complexity. Local responsibility and entrepreneurship, combined with a wide range of company sizes makes it challenging to have a "one size fits all" model. Thus, rather than having an independent sustainability function, our sustainability approach is integrated across the different group elements and requires to be adapted case-by-case.
The UN’s Sustainable Development Goals (SDGs) are a 17-point plan up to 2030, for ending extreme poverty, fighting inequality and injustice and protecting the planet. Achieving these global goals requires significant effort at all levels of society, not least in business, which has a critical role to play as a change agent. Based on our materiality assessment and stakeholder dialogue, we have identified three areas where we can contribute most to the SDGs.
3. Good Health and Well-being
3.4 By 2030, reduce by one third premature mortality from non-communicable diseases through prevention and treatment and promote mental health and well-being.
3.B Support the research and development of vaccines and medicines for the communicable and noncommunicable diseases, provide access to affordable essential medicines and vaccines, and provide access to medicines for all.
8. Decent Work and Economic Growth
8.3 Promote decent job creation, entrepreneurship, creativity and innovation, and encourage the formalization and growth of micro-, small- and medium-sized enterprises, including through access to financial services.
8.4 Improve resource efficiency in consumption and production and endeavour to decouple economic growth from environmental degradation.
12. Responsible Consumption and Production
12.2 By 2030, achieve the sustainable management and efficient use of natural resources.
12.7 Promote public procurement practices that are sustainable, in accordance with national policies and priorities