Sustainability
Environmental information
This part of the sustainability report concerns AddLife's work on environmental matters in its own operations and value chain. A more detailed description of AddLife's work on pollution and biodiversity in the supply chain can be found on page 47.
Climate change
Impacts, risks and opportunities
AddLife's negative climate impact is concentrated upstream in the value chain. Specifically, the extraction of resources required to manufacture the products and components we distribute and use in our own production has a negative impact on the climate. In particular, mining, to extract minerals and metals, and oil extraction, to produce plastics, rely heavily on fossil energy. The manufacture of components and the final production of the products we distribute use less energy-intensive processes than are used for extraction of raw materials, for which reason they have a lower climate impact in relative terms. In our own operations, the largest sources of emissions are fuel consumption by company-owned cars, electricity consumption, and district heating and cooling for offices. The use of refrigerants to cool some of our products also gives rise to greenhouse gas emissions. Customers cause greenhouse gas emissions in the downstream value chain by using our products and in their waste management. Along with climate impact and resource use, we also distribute some products containing substances of concern and substances of very high concern.
Given the decentralised nature of the AddLife Group, with about 85 operating companies that are active in different geographic locations, as well as in different niche markets in Life Science, physical climate-related risks are not considered likely to be significant from a Group perspective. The expected financial consequences of AddLife's significant climate risks are primarily transition risks that affect all companies in the Group. Compliance with the EU Directive on corporate sustainability due diligence in particular may have adverse effects on AddLife's financial position and performance in the medium and long term, especially through increased costs associated with managing our climate impact in the supply chain. The potential to reduce its customers' greenhouse gas emissions could have a positive financial effect on AddLife.
Governance and strategy
AddLife's climate efforts are guided by our group-wide Code of Conduct, which mandates that we should take responsibility for our environmental impact across the entire value chain and work towards climate-smart solutions. AddLife’s current climate target is to reduce greenhouse gas emissions in scope 1 and scope 2 by 25% per SEK million in sales by 2025, compared to the base year of 2021. This target will be reviewed and updated in the future. Developing a climate goal in line with the Paris Agreement and the 1.5-degree target, along with a corresponding transition plan, presents challenges for AddLife. This is because AddLife operates as an acquirer with a decentralised business model, primarily distributing products from other companies. We also have numerous suppliers, product categories and subsidiaries, which add to the complexity of our operations from a climate perspective. Since our emissions primarily occur in the upstream value chain, emission reduction relies heavily on our suppliers, especially their subcontractors. In our Code of Conduct for Business Partners, we urge our suppliers to assume responsibility for, be transparent about and reduce their negative environmental impact. In 2023, we initiated efforts to understand how we can best address future legal requirements and the expectations of our key stakeholders concerning our climate work.
CLIMATE TARGET 2023- Reduce the intensity of emissions in scope 1 and scope 2 per SEKm sales by 25% by 2025, using 2021 as the baseline year.
Metrics
Energy consumption and mix
This is the first year that AddLife is gathering data on energy consumption broken down by energy source, which makes it impossible to compare with energy consumption from the previous year since the same detailed breakdown is not available. Much of the Group's energy consumption derives from the subsidiaries' cars, which are primarily used in sales operations and usually use fossil fuels, although electric cars are becoming more common. This source is followed by energy consumption from our offices and manufacturing units, which use electricity, as well as district heating and cooling. Some of our premises are heated by furnaces, which usually use natural gas or similar fuel.
| Energy consumtion and mix (MWh) | 2023 |
|---|---|
| Total fossil energy consumption | 14,392 |
| Share of fossil sources in total energy consumption (%) | 61% |
| Consumption form nuclear sources | 400 |
| Share of consumption from nuclear sources in total enery consumption (%) | 2% |
| Fuel consumption from rewnewable sources | 677 |
| Consumption of purscsed or aquired electricity, heat, steam and cooling from renewable sources | 7,950 |
| The consumption of self-generated non-fuel renewbale energy | 0 |
| Total renewable energy consumption | 8,627 |
| Share of newable sources in total energy consumption | 37% |
| Total energy consumption | 23,419 |
Energy intensity
Since AddLife has no activities in high climate impact sectors, our energy intensity per net sales in these sectors is zero.
| Energy intensity per net revenue in high climate impact sectors (kWh/MSEK) | 2023 |
|---|---|
| Total energy consumption from activities in high climate impact sectors per net revenue from activities in high climate impact sectors | 0 |
Greenhouse gas emissions
AddLife's greenhouse gas emissions increased between 2022 and 2023. The main reason is better data coverage; for example, the use of district heating is now included, whereas in previous years it was difficult to obtain that information from our landlords. The increase in emissions is also due to an increase in our energy consumption, especially fuel consumption from our fleet of vehicles, which travelled further in 2023 than in 2022, as well as a refrigerant leak at one of our subsidiaries that had a significant climate impact. We have also updated our emission factors and calculation methods. Therefore, it is not possible to compare greenhouse gas emissions between 2023 and 2022. Our climate calculations comply with the GHG Protocol Corporate Standard.
| Emissions of greenhouse gases (Tonne CO2e) | 2023 | 2022 |
|---|---|---|
| Gross Scope 1 GHG emissions | 8,491 | 3,966 |
| Gross location-based Scope 2 GHG emissions | 1,193 | 859 |
| Gross market-based Scope 2 GHG emissions | 1,846 | 514 |
| Total Gross indirect (Scope 3) GHG emissions | 16,244 | - |
| where of Category 3: Fuel- and energy-related activities | 1,437 | - |
| where of Category 5: Waste generated in operations | 7,624 | - |
| where of Category 6. Business travel | 7,183 | - |
| Total GHG emissions (Scope 1 + Scope 2 market-based + Scope 3) | 26,581 | 4,480 |
| Total GHG emissions (location-based) | 25,928 | 4,825 |
| Total GHG emissions (market-based) | 26,581 | 4,480 |
| GHG intensity per net revenue (tCO2eq/SEKm) | 2023 | 2022 |
|---|---|---|
| Total GHG emissions (location-based) per net revenue | 2.7 | 0.5 |
| Total GHG emissions (market-based) per net revenue | 2.7 | 0.5 |
| GHG emissions in Scope 1 and Scope 2 market-based per net revenue | 1.1 | 0.5 |
AddLife's subsidiary HC21 delivers products and solutions for primary care and home healthcare that promote independence for the elderly and people with disabilities. In 2015, they invested in one of the first large-scale decontamination and recycling centres for healthcare products. The team handles everything from electric beds, toilet aids and dynamic air mattresses to pressure-relieving cushions, electric wheelchairs and lifting devices. In 2023, HC21 reviewed its processes and was nominated for The Green Transformation Award and The Excellence in Waste Management Award for their efforts.