Biodiversity and ecosystems

Strategy

Transition plan and consideration of biodiversity and ecosystems in strategy and business model
AddLife has not yet conducted a resilience analysis related to biodiversity and ecosystems, nor has the Group developed a transition plan in this area. During 2025 and 2026, AddLife plans to conduct an analysis based on the TNFD framework to better understand its impact and integrate insights into its strategy and business model.

Material impacts, risks, and opportunities and their relationship to strategy and business model
The impact of biodiversity and ecosystems has been assessed as material for AddLife, primarily upstream in the value chain. Consequently, AddLife has not conducted a more detailed analysis of biodiversity in locations where the Group has operations and operational control. AddLife's own operations, consisting mainly of sales offices, warehouses, and in some cases production facilities, are located in densely populated urban areas with low ecological value. In the Group’s materiality analysis, AddLife has not identified any significant impacts related to land degradation, desertification, or land sealing. Additionally, no operations have been identified as having an impact on threatened species.

Management of impacts, risks, and opportunities

Description of the process for identifying and assessing material impacts, risks, and opportunities for biodiversity and ecosystems
The materiality analysis included a broad evaluation of biodiversity and ecosystems. A review of AddLife’s offices, warehouses, and production units found no significant negative impacts. However, the assessment identified potential negative impacts on biodiversity within the supply chain due to the sourcing of materials.

This review also highlighted dependencies on natural resources and ecosystem services essential for the production of the products AddLife distributes. However, the Group has not yet evaluated the likelihood of disruptions to these ecosystem services.

No transition risks, physical risks, or systemic risks related to biodiversity and ecosystems have been thoroughly analyzed to date. Likewise, AddLife has not consulted affected local communities regarding biological resources and ecosystems. Since significant impacts occur further down the supply chain, identifying and consulting relevant local communities remains a challenge.

Biodiversity and ecosystems are considered material in AddLife’s supply chain but not in the Group’s own operations or downstream in the value chain. AddLife’s business mainly consists of sales offices, warehouses, and, in some cases, production facilities, all located in densely populated urban areas with low ecological value. As a result, biodiversity is not considered material in the Group’s own operations.

However, negative impacts on biodiversity in the supply chain are deemed significant, primarily due to pollution, land use changes, and climate change. Water and air pollution frequently occur during the extraction and processing of materials used in medical and laboratory equipment, especially within the oil, mining, and forestry industries. Additionally, cotton used in medical consumables is associated with soil and water pollution, negatively affecting biodiversity.

Land-use changes due to mining, oil extraction, forestry, and cotton cultivation have a substantial negative impact on biodiversity, as do the effects of climate change. Environmental pollution in the supply chain is assessed as severe, further exacerbating its negative impact on biodiversity.

The loss of biodiversity can disrupt ecosystems, favoring certain species—including potential disease carriers—and increasing their ability to spread. Reduced biodiversity can also weaken ecosystems’ natural disease barriers, facilitating pathogen transmission to both humans and animals.

This may represent a potential financial opportunity for AddLife, as the Group's distribution of laboratory technology contributes to society’s ability to diagnose and manage infectious diseases, such as COVID-19.

Policies for biodiversity and ecosystems
AddLife’s Code of Conduct currently addresses environmental issues from a broad perspective but does not specifically include biodiversity. Furthermore, AddLife’s subsidiaries have no policies that explicitly cover biodiversity-related aspects.

To date, AddLife has not focused on actively directing its subsidiaries’ actions in this area, as biodiversity has not been of direct strategic significance to the Group’s business model. However, AddLife acknowledges the growing importance of biodiversity and is working to integrate these aspects into its sustainability strategy, in line with evolving market expectations and regulatory requirements.

AddLife also recognizes that biodiversity is gaining increased attention from the Group’s external stakeholders and is becoming an increasingly important societal issue, particularly in relation to climate change. In light of this, AddLife plans to update both its Code of Conduct and its Supplier Code of Conduct in 2025 to include biodiversity considerations.

Measures and resources for biodiversity and ecosystems
AddLife currently does not have a Group-wide Biodiversity Action Plan, as it has not been of direct strategic significance to the business model. However, during 2025 and 2026, AddLife plans to develop such a plan.

Metrics and targets

Targets for biodiversity and ecosystems
AddLife currently lacks specific targets related to biodiversity and ecosystems. The plan for 2025 and 2026 includes exploring what types of targets could be established. Given that the Group does not yet have a policy or action plan in place, AddLife does not currently monitor their effectiveness. The 2025–2026 plan also includes developing methods for tracking the Group’s future biodiversity policy and transition plan.

Latest updated: 3/24/2025 12:03:51 PM by Timmy Rosendal