ENVIRONMENTAL INFORMATION
Climate change
Governance
Integration of sustainability-related performance in incentive systems
AddLife has a remuneration policy that includes both fixed and variable compensation for members of the group management and selected key personnel. The board of directors receives only fixed remuneration without any link to sustainability or climate targets. For the CEO and senior executives, variable compensation can amount to a maximum of 40 percent of the fixed annual salary.
Performance is evaluated against financial, operational, and sustainability-related targets. Sustainability targets are included in the short-term incentive programme for senior executives, where specific indicators related to the company's overall sustainability strategy are considered in remuneration assessments. The share of variable compensation linked to sustainability usually amounts to 15 percent of the total bonus, of which approximately 5 percent pertains to climate-related targets, such as goals for reducing greenhouse gas (GHG) emissions.
Strategy
Transition plan for climate change mitigation
During 2024, AddLife has undertaken work to develop a climate action plan aimed at mitigating climate change and ensuring that the group’s emission reduction targets align with the Paris Agreement’s goal of limiting global warming to 1.5°C. The plan identifies climate-related transition risks and opportunities and has resulted in concrete measures to reduce the group’s climate impact. As part of the action plan, AddLife plans to update the group’s existing climate targets by applying for Science Based Targets (SBT) for Scopes 1-3 when the new net-zero standard is published, ensuring that the group’s emission reduction targets are validated against the scientifically based 1.5°C roadmap. AddLife will set both short- and long-term SBTs, ensuring that the group’s efforts are aligned with the limitation of global warming to 1.5°C in accordance with the Paris Agreement and the goal of achieving climate neutrality by 2050. The plan will be finalised in 2025 and approved by the board of directors.
The key drivers for phasing out fossil fuels identified by AddLife include increased engagement from both customers and investors. Through these engagements, AddLife also sees new business opportunities that strengthen the group’s market position. The key measures planned by AddLife include:
- Collaborating with AddLife’s suppliers to reduce emissions in the supply chain.
- Improving the management of refrigerants.
- Replacing fossil fuels in AddLife’s own operations with bio-based alternatives.
- Transitioning to renewable electricity.
- Conducting a thorough review of AddLife’s product portfolio
The purpose of the portfolio review is to identify which products have the potential to become more emission-efficient, both in the upstream value chain and during the usage phase. Since the action plan was developed at the end of 2024, it will be implemented and reported starting in 2025.
As the Group's climate action plan was finalised at the end of 2024, no financial calculations or quantifications of the specific measures have yet been conducted. AddLife has already initiated the reporting of its taxonomy activities, which means that certain key performance indicators for taxonomy-aligned capital and operating expenditures are already available. AddLife has concluded that the group currently does not have any taxonomy-aligned activities, meaning that the related capital and operating expenditures are equal to zero. As a first step towards achieving taxonomy alignment (with respect to the environmental objective "Climate Change Mitigation" (CCM)), AddLife, as part of the group's climate action plan, plans to conduct physical climate risk analyses for AddLife’s owned and leased properties (CCM: 7.7 Acquisition and ownership of buildings). This is because such analyses are a crucial component in meeting the criteria for being considered environmentally sustainable and can provide valuable insights into which properties are at risk of physical climate-related risks. For more information on AddLife and the EU Taxonomy, please see the EU Taxonomy Report 2024.
Our climate action plan is intended to become an integrated part of the group’s overall business strategy and financial planning. The plan focuses on minimising climate-related risks while leveraging business opportunities arising from the transition to a more sustainable business model. This means that the actions are not merely isolated measures but rather connected to investment and operational decisions. The climate action plan and its measures will serve as a guiding factor in AddLife’s financial planning going forward.
In AddLife’s climate risk and opportunity analysis, which forms the basis of the climate action plan, certain potential locked-in greenhouse gas emissions have been identified that may be difficult to reduce. AddLife has identified, among other things, that there may be conflicts between product development and the requirements of the Medical Devices Regulation (MDR) and the In Vitro Diagnostic Medical Devices Regulation (IVDR), which could limit the group’s ability to market products with a lower climate footprint. AddLife plans to conduct a deeper analysis to determine exactly which products may be affected. Another potentially problematic area is the greenhouse gas emissions related to the use of our products, as several of AddLife’s products rely on electricity during the usage phase. Another potentially problematic area is the end-of-life management of our products. This is because, in the majority of cases, responsibility for disposal at the end of the product’s lifecycle lies with the end user. However, some of our companies take back larger products, such as X-ray machines, to reuse parts. When products reach the end of their lifespan, it can be difficult to ensure that they are handled in an environmentally sustainable manner.
AddLife is not excluded from the EU benchmarks for alignment with the Paris Agreement in accordance with the exclusion criteria in Article 12.1 d–g and 12.2 of Commission Delegated Regulation (EU) 2020/1818.
Material impacts, risks, and opportunities and their relationship with strategy and business model
As part of the development of AddLife’s Climate Action Plan, the Group has conducted a climate risk and opportunity analysis in line with the recommendations of TCFD (Task Force on Climate-related Financial Disclosures). As part of this, a scenario analysis has been carried out based on two scenarios: RCP 8.5 - Continuation of high carbon dioxide emissions and RCP 2.6 - Carbon dioxide emissions will peak around 2020. The scenarios are from the IPCC’s (Intergovernmental Panel on Climate Change) Fifth Assessment Report. The IPCC’s scenarios are based on the latest scientific research and rely on extensive climate studies from around the world. Using RCP 8.5 and RCP 2.6 together provides a broad perspective on possible futures by highlighting both extreme and optimistic scenarios. In the Group’s analysis, the scenarios have been applied at a regional level, and AddLife has considered several key drivers (main factors) in each scenario to ensure a relevant and well-founded assessment of climate-related risks and opportunities. The table below outlines the key assumptions for each scenario.
| Scenario | Scenario description | |
|---|---|---|
| RCP 8.5 - Continued High Carbon Emissions | This scenario assumes continued high emissions with no significant measures to mitigate climate change. Actions are primarily reactive responses to climate disasters. | |
| Key features: | ||
| • Carbon emissions triple, leading to a temperature increase of over 4°C by 2100. | ||
| • Fossil fuels dominate energy production. | ||
| • Rapid population growth and economic expansion drive increased emissions. | ||
| • Polar ice caps and glaciers melt rapidly, significantly raising sea levels. | ||
| • Extreme weather events such as heatwaves, droughts, and storms become more frequent. | ||
| • Ecosystems and biodiversity are threatened, with many species unable to adapt. | ||
| • Declining air quality, health issues, and food and water shortages increase, particularly for vulnerable groups. | ||
| • Climate change contributes to conflicts, migration, and economic instability. | ||
| RCP 2.6 - A Scenario with Strong Climate Action | In this scenario, proactive measures are taken to mitigate climate change, leading to lower warming and less severe consequences compared to RCP 8.5. | |
| Key features: | ||
| • Carbon emissions peak around 2050 and then decline through strong interventions. | ||
| • Global temperature increase is limited to 1.5–2°C above pre-industrial levels by 2100. | ||
| • Rapid transition to renewable energy and improved energy efficiency. | ||
| • Moderate sea level rise and fewer extreme weather events compared to high-emission scenarios. | ||
| • Ecosystems and biodiversity are less affected, allowing species better chances to adapt. | ||
| • Health risks such as air pollution and heat stress decrease but persist in some regions. | ||
| • Socioeconomic impacts are more manageable, with fewer conflicts and climate-related migration. |
The scenario analysis has helped AddLife identify both transition and physical risks as well as opportunities, which have formed the basis for the development of AddLife’s Climate Action Plan. From a global perspective, we have not yet seen the significant emission reductions necessary to align with the RCP 2.6 scenario (substantially reduced carbon dioxide emissions), and we are in a situation where the world is approaching the RCP 8.5 scenario (continuation of high carbon dioxide emissions) unless more ambitious measures are implemented. However, global efforts to reduce emissions are still ongoing, which means that AddLife’s material risks and opportunities fall somewhere between both scenarios. The material risks and opportunities identified are described in the table below.
| Physical climate risks | Potential economic effects | |
|---|---|---|
| Acute risks | AddLife's significant physical climate risks are primarily linked to acute events due to their high potential economic impact and sudden onset, such as extreme weather events. These risks affect the entire value chain as they can cause immediate disruptions in logistics, production schedules, and infrastructure. | |
| • Revenue loss caused by delays | ||
| • Destroyed inventory of raw materials and finished products in storage | ||
| • Repair costs related to damage to owned warehouses and production facilities | ||
| • Increased transportation costs | ||
| Chronic risks | AddLife's significant chronic risks are connected to acute risks but are less time-sensitive, as climate impacts take longer to manifest compared to acute events (e.g., flooding). However, the risk of increased insurance premiums for owned facilities is an exception, as insurance companies are already considering higher premiums or reduced coverage in response to acute climate risks. | |
| • Increased insurance premiums for owned facilities | ||
| Transition-related climate risks | Potential economic effects | |
| Policy and legal risks | Stricter climate policies and legal measures in AddLife's value chain create several risks for the group. Potential financial effects related to these risks: | |
| • Higher costs for raw materials, components, and supplier compliance monitoring | ||
| • Higher carbon prices from carbon taxes or fees | ||
| • Increased internal compliance costs | ||
| • Revenue loss due to reduced customer purchasing power | ||
| • Decreased sales or fines resulting from accusations of greenwashing | ||
| Technology risks | New regulations and expectations to transition to low-carbon technologies and processes in AddLife's value chain create the following potential financial effects: | |
| • Increased procurement costs | ||
| • Higher costs for upgrading facilities, adopting cleaner technologies, and complying with stricter carbon regulations and environmental standards | ||
| Market risks | Changes in customer preferences for products with lower climate impact threaten the relevance and demand for AddLife's offerings if these sustainability standards are not met. This issue is particularly concerning given potential conflicts between product development and the requirements of MDR and IVDR, which may limit our ability to sell lower-impact products. Potential financial effects related to this risk: | |
| • Revenue loss from reduced market share | ||
| Reputation risks | Increased regulatory scrutiny and public interest in climate change threaten AddLife's reputation if we or our suppliers fail to meet new sustainability standards. | |
| • Decreased sales | ||
| Climate-related opportunities | Potential economic effects | |
| Resource efficiency | Opportunities to improve resource efficiency have been identified in relation to AddLife's suppliers and the group's own operations. | |
| • Reduced costs for suppliers and internal operations | ||
| Energy source | The opportunity to transition to renewable energy sources has been identified in relation to AddLife's own operations. | |
| • Reduced long-term energy costs | ||
| Products and services | Increased demand for climate-adapted Labtech and Medtech solutions, along with growing climate awareness among healthcare providers, creates opportunities for AddLife to develop innovative products that address climate-related health issues. | |
| • Revenue growth from increased market share | ||
| Resilience | Strengthening the resilience of supply chains and operations against climate impacts can create opportunities for AddLife to ensure long-term viability and mitigate risks associated with climate change. | |
| • Cost savings through reduced disruptions, lower emissions, and potential operational efficiencies in the supply chain | ||
| • Long-term cost savings by upgrading facilities and investing in renewable energy and energy-efficient technologies |
AddLife has conducted a resilience analysis as a natural step in the Group’s climate risk and opportunity analysis. This analysis has helped the Group understand how AddLife’s operations are affected by both physical and transition-related climate risks. By identifying potential weaknesses, AddLife has been able to develop measures in the Group’s Climate Action Plan to strengthen resilience to climate change and adapt operations to the associated risks and opportunities.
The climate risk and opportunity analysis was conducted from a value chain perspective and was carried out during the autumn of 2024. The scenarios used are RCP 8.5 and RCP 2.6, which are designed for projections beyond the year 2100. In the double materiality analysis, AddLife’s climate-related risks and opportunities are analyzed within the same time horizon as other risks and opportunities, namely short term (the reporting period for the Group’s financial reports, corresponding to 1 year), medium term (1–5 years), and long term (>5 years).
The risks and opportunities identified through the scenarios are therefore related to these time horizons rather than the year 2100, ensuring that AddLife can act on and manage the risks within timeframes relevant to the Group’s operations.
Regarding financial effects, no specific estimates have been made for risks and opportunities. The current assessments are based on qualitative evaluations rather than quantitative estimates. The potential financial impacts and measures to mitigate risks and seize opportunities are documented in AddLife’s overarching Climate Action Plan. AddLife continues to allocate resources for planned measures and is proactively starting work to ensure long-term resilience.
Management of impacts, risks, and opportunities
Description of the process for determining and assessing material climate-related impacts, risks, and opportunities
AddLife’s negative climate impact is primarily concentrated upstream in the value chain. This is due to the extraction of resources required for manufacturing the products and components that AddLife distributes and uses in AddLife’s own production, which has a significant climate impact. In particular, mining for mineral and metal extraction as well as oil extraction for plastic manufacturing are highly energy-intensive processes that consume large amounts of fossil energy. The manufacturing of the components and products AddLife distributes has a lower climate impact than raw material extraction, as these processes are less energy-intensive. In the own operations, it is primarily fuel consumption in vehicles as well as electricity consumption, district heating, and cooling for offices that contribute to AddLife’s emissions. The use of refrigerants for certain products also causes greenhouse gas emissions. Customers’ use of AddLife’s products and waste management of these result in additional emissions downstream in the value chain.
Since AddLife is a decentralized group with approximately 85 operational companies operating in different geographical markets within Life Science, physical climate-related risks are assessed as less material from a Group perspective (though still material) compared to transition risks. The material climate risks for AddLife primarily consist of transition risks affecting all companies within the Group. The EU Corporate Sustainability Due Diligence Directive (CSDDD) could result in negative financial consequences in the medium and long term, mainly through increased costs to manage climate impact in the supply chain. However, AddLife’s ability to reduce customers’ greenhouse gas emissions is considered to have a positive financial impact on the Group.
Several of AddLife’s suppliers and subsidiaries are located in Southern Europe, a region more exposed to extreme weather events, increasing the likelihood of physical climate-related risks. Disruptions from climate-related events can therefore result in significant negative financial consequences, particularly since 90% of the Group’s sales derive from distribution rather than in-house production. This can include delays in manufacturing, higher transport costs, and potential damage to raw materials or products. If products are destroyed or damaged during storage or transport, this can cause not only direct financial losses but also negatively impact the company's reputation and customer relations. Despite only 10% of production being internal, climate-related events such as flooding, increased energy costs, and higher insurance premiums can have negative financial consequences. Since subsidiaries within the Group handle the warehousing of most end products, physical risks, such as flooding, can result in lost products becoming very costly.
AddLife has identified its climate-related impact through an analysis of activities and emission sources in the value chain – upstream, within the own operations, and downstream. In 2024, AddLife collected greenhouse gas emissions data for all applicable scope 3 categories for the first time. This has provided the Group with a more detailed understanding of its specific impact and its extent. AddLife’s climate risk and opportunity analysis has also been conducted from a value chain perspective, where AddLife has analyzed both transition risks and physical risks. See the section Material Impacts, Risks, and Opportunities and Their Relationship with Strategy and Business Model for more information on the Group’s climate risk and opportunity analysis. The identification of impacts, risks, and opportunities has been informed by, among other things, dialogues with the Group’s investors, interviews with several of the Group’s subsidiaries, and insights from external experts.
Policies for climate change mitigation and adaptation
Currently, AddLife is developing a climate policy as part of the Group’s climate action plan. The policy is planned to be implemented throughout the Group in 2025.
Actions and resources concerning climate change policies
In AddLife’s climate action plan, several measures have been established to reduce the Group’s greenhouse gas emissions and manage physical climate-related risks, both within its own operations and upstream and downstream in the value chain. Each measure is linked to a specific climate-related risk or opportunity, enabling a structured follow-up on how these are handled. Once AddLife has set its short- and long-term climate goals in line with SBT, a clear timeline will be developed for each measure in relation to the achievement of the climate goals. AddLife will also establish "adaptation targets" to address physical risks and opportunities.
The key measures AddLife is planning include:
WITHIN ITS OWN OPERATIONS:
- Improved management of refrigerants (Scope 1)
- Replacing fossil fuels with bio-based alternatives (Scope 1)
- Transitioning to renewable energy (Scope 2)
UPSTREAM AND DOWNSTREAM IN THE VALUE CHAIN:
- Reviewing AddLife’s product portfolio to identify products with the potential to become more emission-efficient, both in the supplier stage and during the usage phase (Scope 3 up stream)
- Collaborating with AddLife’s suppliers to reduce emissions in the supply chain (Scope 3 down stream)
AddLife is continuously allocating resources for the climate action plan. The climate action plan was finalized at the end of 2024, which is why no financial calculations or quantifications of the specific measures have yet been conducted. AddLife has already begun reporting the Group’s taxonomy activities, which means that certain key performance indicators for taxonomy-aligned capital and operational expenditures are already available. As was the case last year, AddLife currently has no taxonomy-aligned activities, meaning that the related capital and operational expenditures amount to zero. Read more about AddLife and the EU taxonomy on the page EU Taxonomy Report 2024.
Metrics and Targets
Targets for climate change mitigation and adaptation
AddLife has previously set a target to reduce Scope 1 and Scope 2 emissions intensity by 25 percent per MSEK turnover by 2025, using 2022 as the base year. AddLife's Scope 1 and Scope 2 emissions have increased as data's scope and quality improved over 2021–2024. This makes it impossible to compare the outcomes for these years.
In 2025, AddLife plans to update the Group's climate targets in accordance with criteria for Science Based Targets (SBT). The aim is to ensure that AddLife’s climate efforts align intending to limit global warming to 1.5°C under the Paris Agreement and to achieve climate neutrality by 2050. Since 2024 is the first year with complete data for all scopes, it will be established as AddLife’s new base year for all climate targets. The new targets will be linked to specific measures in the Group’s climate action plan to address identified impacts, risks, and opportunities. Progress will be measured by monitoring AddLife’s Scope 1–3 emissions. The targets will be sent in for validation once the new net-zero standard is published.
| Greenhouse Gas Emissions Intensity per Net Revenue (tCO₂eq/SEKm) | 2024 | 2023 | 2022 (Base Year) |
|---|---|---|---|
| Greenhouse gas emissions (Scope 1 + Scope 2 market-based) per net revenue | 0.7 | 0.7 | 0.5 |
Energy use and energy mix
Since AddLife does not operate in sectors with high climate impact, no further breakdown of fossil energy sources is required. The data is based on internal measurements and calculations according to established methods but has not been validated by an external party.
AddLife uses a data collection and consolidation system for sustainability data, which is utilized by all subsidiaries for reporting. Energy-related data is primarily sourced from supplier invoices or recorded in internal systems such as ERP. The emission factors used for calculating climate impact are either country-specific for the respective subsidiary’s location or supplier-specific, depending on availability and reliability.
| Energy consumption and mix (MWh) | 2024 |
|---|---|
| Total fossil energy consumption | 42,588 |
| Share of fossil sources in total energy consumption, % | 26 |
| Consumption from nuclear sources | 447 |
| Share of consumption from nuclear sources in total energy consumption, % | 0.3 |
| Fuel consumption from renewable sources | 202 |
| Consumption of purchased or acquired electricity, heat, steam and cooling from renewable sources | 123,472 |
| Consumption of self-generated non-fuel renewable energy | 13 |
| Total renewable energy consumption | 123,687 |
| Share of renewable sources in total energy consumption, % | 74 |
| Total energy consumption | 166,722 |
Energy intensity
AddLife has no activities in sectors with high climate impact, resulting in the Group’s energy intensity per net revenue in these sectors being zero. An external third party has not validated the data.
| Energy intensity per net revenue in high climate impact sectors (kWh/MSEK) | 2024 | 2023 |
|---|---|---|
| Total energy consumption from activities in high climate impact sectors per net revenue from activities in high climate impact sectors | 0 | 0 |
Gross greenhouse gas emissions in Scope 1, 2, 3, and total greenhouse gas emissions
During the year, AddLife has updated the Group’s calculation methods, expanded the reporting scope, and revised emission factors, making previous years' data non-comparable. AddLife has selected 2024 as the base year for the Group’s new climate targets, which are currently being developed. The company reports only the Scope 3 categories deemed relevant.
The calculation of upstream emissions is primarily based on a spend-based method, while downstream emissions are estimated using a model for the lifetime energy consumption of products. This model accounts for the number of products sold, power, daily usage, annual operation, expected lifespan, markets, and the electricity grid in which the products are used. For Category 11, the use of refrigerants and aerosols is also estimated.
Emissions in Category 12 (End-of-Life Treatment of Sold Products) are based on either actual weight or estimates of waste quantities during the year, with assumptions about waste management aligned with average levels in the European healthcare sector.
The reporting relies on data from the subsidiaries’ sustainability systems, with primary sources including supplier invoices and internal financial and ERP systems. Emission factors are either generic for the countries in which AddLife operates or supplier-specific, depending on data availability and quality. The data has not been verified by a third party.
| Emissions of greenhouse gases (Tonne CO2e) | 2024 |
|---|---|
| Gross Scope 1 GHG emissions | 5,088 |
| Gross location-based Scope 2 GHG emissions | 1,374 |
| Gross market-based Scope 2 GHG emissions | 1,635 |
| Total Gross indirect (Scope 3) GHG emissions | 418,136 |
| where of Category 1: Purchased goods and services | 350,250 |
| where of Category 2: Capital goods | 6,739 |
| where of Category 3: Fuel- and energy-related activities | 1,622 |
| where of Category 4: Upstream transportation and distribution | 18,615 |
| where of Category 5: Waste generated in operations | 79 |
| where of Category 6. Business travel | 3,203 |
| where of Category 7: Employee commuting | 3,111 |
| where of Category 9: Downstream transportation and distribution | 2,319 |
| where of Category 11: Use of sold products | 30,622 |
| where of Category 12: End-of-life treatment of sold products | 1,576 |
| Total GHG emissions ( Scope 1 + Scope 2 market-based + Scope 3 ) | 424,859 |
| Total GHG emissions (location-based) | 424,598 |
Emissions intensity
The data has not been validated by an external third party.
| GHG intensity per net revenue (tCO2eq/SEKm) | 2024 |
|---|---|
| Total GHG emissions (location-based) per net revenue | 41 |
| Total GHG emissions (market-based) per net revenue | 41 |
Expected financial effects of material physical risks, transition risks, and potential climate-related opportunities
AddLife has identified several material physical and transition-related climate risks and opportunities in its climate risk and opportunity assessment. These have the potential to impact AddLife in both the short and long term, and the Group expects them to significantly affect its financial position, performance, and cash flows.
In the short term, physical climate risks such as extreme weather events may cause immediate disruptions to AddLife’s production and distribution chains, leading to delays and higher costs for repairing damaged infrastructure and inventories. This could affect AddLife’s revenues, mainly if the Group cannot deliver products within customers’ expected timeframes. In the medium term, stricter climate policies and legal measures, such as increased carbon pricing and stricter environmental standards, may lead to higher operational costs and require investments in new technology. If AddLife does not adapt to these changes, its competitive advantages may be reduced, leading to lost market share and revenue decline.
In the long term, failure to meet sustainability requirements and changing customer preferences poses a risk of lost business opportunities and reputational damage, which could harm AddLife’s brand and reduce sales. The costs associated with complying with new regulations and transitioning to more sustainable production methods could negatively impact the Group’s cash flow during a transition period, even though the long-term benefits may include a strengthened market position and a more sustainable business model. Therefore, it is crucial that AddLife proactively manages these risks to protect the Group’s financial stability and ensure long-term growth.
Regarding climate-related opportunities, AddLife has identified several factors that could significantly impact the Group’s financial position and short- and long-term performance. In terms of resource efficiency, cost savings both internally and among the Group’s suppliers provide a direct and immediate improvement in profitability, strengthening cash flows in the short term. The transition to renewable energy sources not only reduces long-term energy costs but also creates stable and predictable expenses, positively impacting the Group's financial position and cash flows over time. On the market side, increased demand for climate-adapted products creates opportunities for revenue growth and increased market share, contributing to long-term financial growth. Lastly, by strengthening its resilience against climate impacts in the supply chain and internal operations, AddLife can reduce disruptions and risks while achieving long-term savings through investments in renewable energy and energy-efficient technologies, providing the Group with a stable and strong financial foundation in the medium and long term. For more information on AddLife’s climate-related risks and opportunities, see the section Material impacts, risks, and opportunities and their relationship to strategy and business model above. For details on the Group’s climate risk and opportunity assessment method, see the section Description of the process for identifying and assessing material climate-related impacts, risks, and opportunities.