GENERAL DISCLOSURES
Statutory sustainability report
AddLife has prepared a sustainability report for the financial year 2024, covering the parent company AddLife AB (publ), org. no. 556995-8126, as well as approximately 85 operational subsidiaries. The Board of Directors has approved the report in connection with the signing of the 2024 Annual Report.
The sustainability report provides an overall description of AddLife’s operations from a sustainability perspective and highlights the material sustainability aspects that impact the company’s development, position, performance, and its external consequences. The European Sustainability Reporting Standards (ESRS) have been used as a guideline, although no reporting standard has been fully applied. The report has been prepared in accordance with the Swedish Annual Accounts Act in its version prior to July 1, 2024.
The report outlines AddLife's impact on people and the environment, as well as the financial consequences of sustainability factors on the business. It is integrated into the annual report, with pages 35–93 constituting the statutory sustainability report.
The report is structured into four main sections:
- General Disclosures
- Environmental Information
- Social Information
- Governance Information
These sections provide a clear picture of AddLife’s sustainability efforts and how the company manages key sustainability issues across its operations and value chain.
General disclosures
Basis for preparation
General basis for preparing sustainability statements
The sustainability report has been prepared on a consolidated basis and includes the same scope of subsidiaries as the financial reporting. However, during the year, the subsidiary Camanio was divested, meaning it is no longer included in the group's sustainability reporting.
The reporting covers AddLife’s entire value chain, both upstream and downstream, and includes direct and indirect business relationships that have a material impact on sustainability aspects.
AddLife has chosen not to omit any information based on intellectual property rights, know-how, or innovation outcomes. Furthermore, no exemptions have been applied to avoid reporting on future developments or ongoing negotiations.
Disclosures on specific circumstances
TIME HORIZONS
AddLife has not deviated from the standardized time horizons outlined in ESRS 1 § 6.4. The following definitions are used for reporting sustainability information:
- Short-term: Less than 1 year
- Medium-term: 1–5 years
- Long-term: More than 5 years
These time horizons form the basis for AddLife’s strategic planning, risk assessment, and monitoring of sustainability objectives.
ESTIMATION OF VALUE CHAIN
AddLife uses indirect sources when calculating climate impact in Scope 1, 2, and 3, which are the only key indicators where indirect sources are applied in sustainability reporting.
For Scope 1 and 2, climate calculations are primarily based on own activity data, such as energy consumption and fuel usage, though the emission factors used are often generic for industries and regions.
In Scope 3, indirect sources are used more extensively, particularly for estimating emissions linked to suppliers’ and customers’ activities, where economic data and expenditure-based models are applied to assess climate impact across parts of the value chain. To estimate downstream emissions, AddLife has developed a model based on assumptions regarding the products sold, where the level of uncertainty is higher due to reliance on proxy data and general assumptions.
To improve data accuracy and quality in climate calculations, AddLife aims to enhance the collection of supplier-specific data, reduce dependence on generic emission factors, and further develop models to better reflect actual emission patterns.
SOURCES OF UNCERTAINTY IN ESTIMATES AND OUTCOMES
AddLife identifies greenhouse gas emissions within Scope 3 as the most uncertain key figure in the sustainability report, as the calculations largely rely on generic emission factors and estimates of supplier and customer emissions. The main sources of uncertainty in these measurements are the lack of primary data across the entire value chain, variations in available emission factors, and assumptions regarding product usage and lifecycle.
In its calculations, AddLife has used sectoral averages, economic modeling, and assumptions about product lifespan and usage patterns. These assumptions and approximations are made to ensure that the reporting best reflects reality but also introduce a certain margin of uncertainty. In the long term, AddLife also anticipates that future financial assessments of sustainability-related costs and investments may become an additional source of uncertainty, as such calculations are often dependent on external factors such as market developments and regulations.
When AddLife discloses forward-looking information, such as long-term sustainability targets and strategic initiatives, it is stated that such information may be uncertain. Forecasts may be influenced by external factors such as legislation, market changes, and technological advancements, meaning that actual outcomes may differ from what is reported today.
CHANGES IN THE PREPARATION OR PRESENTATION OF SUSTAINABILITY INFORMATION
For this year’s sustainability report, AddLife has expanded the scope of the report and updated the methodology to better prepare for CSRD and improve the accuracy of the reported sustainability information. As part of this development, AddLife has conducted a comprehensive inventory of greenhouse gas emissions, resulting in a more extensive climate footprint than in previous years and higher data quality through updated calculation methods.
Since methods and data collection have changed, the greenhouse gas emissions inventory is not directly comparable to previous years. Where prior year data could be adjusted, AddLife has included revised comparative figures, but in some cases, it has not been practically feasible to make retrospective adjustments. In such cases, it is clearly stated that previous years' figures are not fully comparable to the data reported this year.
Where differences exist between previous and revised comparative figures, these have been disclosed along with an explanation of the difference and the reason for the change. AddLife strives to ensure full transparency in sustainability reporting and explains how methodological changes impact the long-term comparability of data.
REPORTING OF ERRORS IN PREVIOUS PERIODS
During this year’s review of sustainability information, AddLife identified an error in the previously reported figure on gender equality in AddLife’s management teams (S1-9). The error affected only the previous reporting period and was due to an incorrect categorization of certain management positions, which impacted the gender equality statistics.
The error has been corrected, and the revised figures have been included in this year’s sustainability report. Since it only affected the most recent reporting period, no further adjustments to historical data were necessary.
AddLife continuously works to improve the quality of data collection and ensure consistent methodologies to minimize the risk of similar errors in the future.
DISCLOSURES DERIVED FROM OTHER LEGISLATION OR GENERALLY ACCEPTED SUSTAINABILITY REPORTING STANDARDS
AddLife’s sustainability reporting follows only the requirements of the Swedish Annual Accounts Act (ÅRL) and is not based on any other legislation mandating sustainability disclosures. AddLife also does not apply other generally accepted standards or frameworks for sustainability reporting beyond ESRS. Consequently, other reporting standards are not partially applied, which would require additional specific references in the reporting.
INCORPORATION BY REFERENCE
AddLife has not used incorporation by reference in its sustainability reporting. All disclosure requirements under ESRS are reported directly in this document.
APPLICATION OF PHASE-IN RELIEF MEASURES UNDER APPENDIX C IN ESRS 1
AddLife applies the phase-in relief measures to quantify financial effects.
Governance
The role of the administrative, management, and supervisory bodies
AddLife’s Board of Directors consists of six members, none of whom hold an executive role or serve as employee representatives. The board members have experience in Life Science, medical technology, finance, and industry, reflecting the company’s business areas and geographical presence.
The board’s gender composition is 50 percent women and 50 percent men, ensuring balanced gender representation. AddLife does not follow additional quantitative indicators for other diversity aspects; however, when composing the board, factors such as international experience and specialized expertise in relevant sectors are considered. Regarding board independence, all members are independent in relation to the company and its management, while 67 percent of the members are also independent concerning major shareholders.
The Board of Directors of AddLife is responsible for the overall governance of the company’s operations, including managing impacts, risks, and opportunities related to sustainability. Sustainability responsibility is integrated into the company’s governance documents and policies. The board’s mandate includes direct oversight of AddLife’s impact on social, environmental, and business ethics-related sustainability, as outlined in the company’s sustainability strategy and code of conduct.
The CEO is responsible for ensuring that sustainability efforts are implemented throughout the organization and align with the board’s guidelines. The operational responsibility for sustainability is delegated to the Head of Sustainability, who oversees environmental, social impact, and corporate governance matters.
To ensure the effective implementation of sustainability initiatives, the company has a sustainability steering group, convened by the Head of Sustainability and comprising business unit managers and the CFO. The steering group is responsible for preparing key sustainability matters for the Group, with a particular focus on how sustainability strategies and initiatives are implemented in practice. The group reports directly to the executive management team, ensuring that sustainability topics are integrated into the strategic decision-making process. The company also applies dedicated processes to manage sustainability-related risks and opportunities, which are embedded in the overall risk management framework and business strategy.
Sustainability targets are set by AddLife’s executive management in collaboration with the Head of Sustainability and are ultimately approved by the Board of Directors. The board and executive management review sustainability targets annually to ensure that the company's development aligns with its long-term strategy and sustainability ambitions.
The board ensures that it has the relevant sustainability expertise to oversee the company’s sustainability efforts, including material impacts, risks, and opportunities. This expertise is developed through ongoing training and access to external experts when necessary.
During the year, the board participated in an internal training program focusing on CSRD, CSDDD, and their implications for AddLife. The program aimed to strengthen the board’s understanding of sustainability reporting and its strategic significance for the company. When necessary, the board also consults external sustainability experts to ensure access to up-to-date expertise and analysis.
The Head of Sustainability ensures that the executive management team and the steering group have the necessary knowledge to effectively oversee and manage sustainability matters. Through regular briefings and support in strategic decisions, sustainability-related risks and opportunities are addressed in a structured manner throughout the organization.
This competence development is directly linked to AddLife’s material impacts, risks, and opportunities. Sustainability issues related to environmental impact, regulatory requirements, and social aspects within the Life Science sector are particularly prioritized areas where the board actively works to ensure the necessary expertise.
Information provided to and sustainability matters addressed by the company’s administrative, management, and supervisory bodies
The Board of Directors and the executive management were regularly informed about material impacts, risks, and opportunities during the reporting period. The executive management receives continuous updates as important issues arise, the steering group is updated monthly, and the board is informed quarterly. The Head of Sustainability is responsible for compiling and presenting updates during these occasions. The reporting covers the monitoring of policies, actions, key performance indicators, and the effectiveness of the company’s sustainability strategy.
The Board of Directors and the executive management have started integrating sustainability aspects into their processes for strategy, major transactions, and risk management. The analysis of trade-offs between impacts, risks, and opportunities is continuously evolving, with the goal of creating a balanced and long-term sustainable business. During the year, the board has specifically addressed material issues such as:
- Regulatory requirements related to CSRD and CSDDD, including how the company adapts its strategy to new legal requirements and the development of AddLife’s materiality analysis.
- Climate and environmental measures, with a focus on AddLife’s greenhouse gas emissions and climate-related financial risks.
- The sustainability impact of the supply chain, where a due diligence process has been developed to manage impacts and risks related to human rights.
These aspects have been central to the work of the Board of Directors and the executive management during the reporting year.
Integration of sustainability-related performance in incentive schemes
AddLife has a remuneration policy that includes both fixed and variable compensation for members of the executive management team and certain key personnel. For the CEO and other senior executives, variable compensation can amount to a maximum of 40 percent of the fixed annual salary. The Board of Directors does not receive variable compensation.
Performance is evaluated based on financial, operational, and sustainability-related targets. Sustainability targets are included in the variable compensation for senior executives, with indicators related to the company’s sustainability strategy considered in remuneration assessments. Sustainability targets generally account for 15 percent of the total bonus in the variable compensation as well as in the long-term incentive program for 2024.
Explanation of due diligence
During the year, AddLife has developed a sustainability due diligence process that will be implemented in the operations in 2025. The process aims to identify, assess, and manage material sustainability-related risks and impacts, particularly in areas such as the supply chain and human rights.
To ensure transparency and traceability, AddLife has integrated the main aspects and steps of the process into relevant sections of AddLife’s sustainability report, as shown in the table below.
Core elements of due diligence | Paragrapgs in the sustainability statement |
---|---|
Embedding due diligence in governance, strategy and business model | Workers in the Value Chain: Management of Impacts, Risks, and Opportunities |
Engaging with affected stakeholders in all key steps of the due diligence | Workers in the Value Chain: Procedures for Engagement with Value Chain Workers Regarding Consequences |
Identifying and assessing adverse impacts | General Disclosures: Description of the Process for Identifying and Assessing Material Impacts, Risks, and Opportunities |
Taking actions to address those adverse impacts | Workers in the Value Chain: Measures Regarding Material Impacts on Value Chain Workers and Strategies for Managing Material Risks and Leveraging Material Opportunities Related to Value Chain Workers, as well as the Effectiveness of these Measures |
Tracking the effectiveness of these efforts and communicating | Workers in the Value Chain: Metrics and Targets |
Risk management and internal control over sustainability reporting
AddLife is actively working to develop its risk management and internal control processes related to sustainability reporting. In 2025, AddLife plans to integrate sustainability into the Group’s existing internal control framework, which will enhance AddLife’s ability to ensure the quality of sustainability information.
The primary risk identified by AddLife concerning sustainability reporting is ensuring sufficient quality in the collected data across the Group’s decentralized organization to meet the requirements of CSRD. This includes challenges related to data collection and traceability across multiple companies and systems.
To mitigate this risk, AddLife is implementing strategies such as:
- Development of standardized processes and guidelines for data collection across the entire Group.
- Clear reporting structures and training for subsidiaries to ensure consistent and accurate sustainability reporting.
- Integration of sustainability reporting into existing financial control systems to enhance quality assurance and monitoring.
In 2025, AddLife will continue working to integrate the results of the risk assessment and internal controls into relevant internal functions and processes. This will ensure that sustainability reporting becomes a natural part of the overall governance of risks and internal control.
The results of this development will be reported regularly to the executive management team and the Board of Directors, ensuring that sustainability risks and reporting-related challenges receive strategic attention at the highest management level.
Strategy
Strategy, business model, and value chain
AddLife offers a wide range of products and services in medical technology, home care, diagnostics, biomedical research, and laboratory analysis, divided into the business areas Medtech and Labtech. AddLife’s customers are primarily found in healthcare, research, and diagnostics, with a strong presence in Europe. During the reporting year, no significant changes have occurred in the product offering, markets, or customer groups. AddLife has approximately 2,400 employees in 30 European countries, with the largest concentration in the United Kingdom, Ireland, Spain, Sweden, Denmark, Norway, Germany, Austria, Finland, Italy, and Poland. AddLife does not sell any products or services that are prohibited in the Group’s markets.
AddLife reports revenue according to two main segments:
- Labtech: Sales of products for research, diagnostics, and biomedicine.
- Medtech: Sales of medical technology and equipment for hospitals and home healthcare.
These business areas constitute AddLife’s primary revenue sources, in line with industry standards. No additional ESRS sectors have been identified beyond these. The company does not operate within fossil fuels, chemical production, controversial weapons, or tobacco.
In 2024, AddLife has initiated work to develop new sustainability targets, with a particular focus on:
- Climate impact: Formulation of new climate targets and measures to reduce greenhouse gas emissions.
- Sustainability in the supply chain: Development of a more systematic process for due diligence and risk management among suppliers.
These targets will be aligned with AddLife’s overall strategy and integrated into operations starting in 2025. For current products, services, and markets, the company is in line with its sustainability strategy, but further development is ongoing to strengthen the integration between business operations and sustainability goals.
In the process of further developing its sustainability strategy, AddLife identifies the following key challenges and focus areas moving forward:
- Implementation of new climate targets and reduction of climate emissions in the value chain.
- Improved supplier monitoring through a strengthened due diligence process.
- Enhancing the Group’s efforts in inclusion and diversity.
- Increased transparency and compliance with CSRD and related requirements.
These initiatives are crucial to ensuring that AddLife works proactively with sustainability and meets growing regulatory and market expectations. AddLife relies on a combination of in-house products and external suppliers, with the Group’s key efforts including:
- Medical technology components and laboratory equipment from global and European suppliers.
- Specialized expertise in sales, service, and product development, ensured through AddLife’s decentralized business model.
- Partnerships with leading suppliers, enabling AddLife to offer high-quality products tailored to healthcare and research.
To ensure a stable supply chain, AddLife engages in supplier evaluations and fosters long-term relationships. During the year, AddLife has developed a sustainability due diligence process, which is planned for implementation in 2025. The objective is to strengthen AddLife’s management of risks related to quality, the environment, and social responsibility within the supply chain.
Through its products and services, AddLife creates value for multiple stakeholders:
- AddLife’s customers, including healthcare providers, laboratories, and research institutions, gain access to high-quality and innovative products.
- AddLife’s investors benefit from the Group’s diversified and stable business model, which ensures continuous growth and profitability.
- Society at large benefits from improved medical diagnostics, research, and patient care, ultimately contributing to better public health.
AddLife continues to strengthen its service offering and product portfolio, with a long-term ambition to further integrate sustainability into AddLife’s product development and supply chain.
AddLife holds a clear position in the value chain, acting as a distributor, advisor, and development partner.
Upstream in the value chain (suppliers):
- AddLife collaborates with globally established manufacturers of medical technology products and laboratory equipment.
- AddLife applies evaluation processes to ensure quality and compliance with sustainability standards. The due diligence process is under development and will be implemented in 2025.
Downstream in the value chain (customers):
- AddLife sells directly to hospitals, laboratories, and research institutions, as well as through public procurement.
- AddLife focuses on product customization, training, and service to ensure that its customers receive the best possible solutions.
- AddLife’s largest markets are in Europe, where its subsidiaries maintain stable demand and long-term customer relationships.
AddLife’s value chain has remained stable throughout the year, and efforts continue to strengthen the Group’s partnerships within the supply chain and enhance customer relationships.
Stakeholder perspectives and interests
At AddLife, active dialogue with the Group’s stakeholders is seen as a central part of its sustainability efforts. AddLife’s key stakeholders include:
- Customers (hospitals, laboratories, research institutions, and healthcare providers)
- Suppliers and business partners
- Employees and organizations that may represent them
- Investors and analysts
- Patients and end users, as well as organizations that may represent them
- Workers in the supply chain and organizations that may represent them
AddLife engages these stakeholders through various channels, such as customer meetings, supplier dialogues, employee surveys, investor meetings, and industry forums. The purpose of AddLife’s stakeholder dialogue is to identify material sustainability issues, gain insights that can improve operations, and ensure that AddLife’s strategy aligns with stakeholders' expectations.
Through stakeholder dialogue, AddLife has identified the following key sustainability issues:
- Climate action – Reducing emissions and carbon footprint
- Good business conduct and governance – Compliance with legislation, regulatory adherence, and business ethics
- Product safety and positive human impact – Ensuring high quality and safety standards in AddLife’s products
- Sustainable supply chains – Increased transparency and stricter monitoring procedures for suppliers
- Transparency on biodiversity – Enhanced efforts and reporting on ecosystem impacts
- Work environment and employee well-being – Attractive workplace, competence development, and greater focus on staff well-being
These issues have guided AddLife in further developing its sustainability strategy.
Based on the stakeholder dialogue, AddLife has initiated efforts to:
- Develop new climate targets and improved measures to reduce AddLife’s environmental impact
- Strengthen supplier monitoring through a more systematic sustainability due diligence process, to be implemented in 2025
- Deepen AddLife’s work on inclusion and diversity, both internally and in relation to the Group’s suppliers
These initiatives are ongoing, and AddLife is assessing how they may influence the business model and stakeholder relationships. The plan is to implement these initiatives during the 2025–2026 period. Stakeholder perspectives and feedback are communicated to the executive management team on an ongoing basis as important issues arise and to the Board of Directors annually as part of the materiality analysis update. This ensures that stakeholder insights are considered at a strategic level and integrated into business decisions.
Material impacts, risks, and opportunities and their relationship to strategy and business model
Through the Group’s materiality analysis, AddLife has identified the following material impacts, risks, and opportunities, concentrated in different parts of the company’s operations and value chain:
Upstream in the value chain:
- Human rights and labor rights – Risks related to raw material extraction and production, where working conditions may vary, and traceability is a challenge.
- Greenhouse gas emissions – Indirect emissions (Scope 3) from transportation, production, and energy use in the supply chain.
- Biodiversity and pollution – Potential negative effects from supplier production, particularly in chemical use and waste management.
Own operations:
- Climate impact – Emissions from offices, warehouses, transportation, and energy use.
- Business ethics and regulatory compliance – Ensuring responsible business practices, including measures against bribery and corruption.
- Employee well-being and inclusion – Workload, job-related stress, and gender equality.
Downstream in the value chain:
- Product safety – Ensuring that products meet regulatory requirements and are used properly by end customers.
- Positive impact on users and patients – AddLife’s products are used in healthcare and research, where proper handling and safety are critical.
The impacts, risks, and opportunities identified in the Group’s materiality analysis influence AddLife’s business model, value chain, and strategic decisions. Upstream in the value chain, increased regulations and customer demands drive a stronger focus on supplier monitoring and climate strategy. Within its own operations, sustainability requirements lead to energy efficiency improvements and enhanced efforts in corporate culture, well-being, and inclusion. Downstream, product development is driven by regulatory requirements and the ambition to improve the quality of life for patients and users.
AddLife is not making significant changes to its business model but actively supports its subsidiaries with sustainability resources and expertise. Through the Group-wide strategy, AddLife strengthens supplier responsibility, internal efficiency, and long-term competitiveness.
Upstream in the value chain, AddLife faces risks of negative impacts on human rights and labor rights, including poor working conditions and forced labor, as well as negative impacts on the climate and local environment due to pollution, which in turn can harm biodiversity. AddLife depends on its suppliers for product distribution and manufacturing and is either directly linked to or contributes to impacts through business relationships. These impacts occur in the short, medium, and long term.
In own operations, AddLife faces risks of negative climate impacts through energy consumption and transportation, as well as workplace risks related to factors such as workload and a non-inclusive psychosocial work environment. AddLife is directly responsible for these impacts through its operational decisions. These impacts occur in the short, medium, and long term.
Downstream in the value chain, AddLife faces risks of negative impacts on patients and users if products are used incorrectly or fail to meet safety requirements, as well as environmental impacts from waste generated by disposable products. At the same time, AddLife has a significant positive impact through its products and services, which contribute to improved health, quality of life, and patient safety. AddLife is directly linked to these impacts through its product development and distribution chain. These impacts occur in the short, medium, and long term.
AddLife continuously monitors the financial effects of material risks and opportunities on the company’s financial position, performance, and cash flows. Currently, AddLife does not anticipate significant cost increases related to sustainability initiatives or regulatory requirements. However, future regulatory tightening and increased customer demands may lead to increased expenditures in supplier audits, development, and product adaptation.
In the short term, AddLife does not expect significant changes in costs related to sustainability measures. However, in the medium and long term, costs may increase due to stricter legal requirements and customer expectations for due diligence and emissions reductions, as well as economic consequences of physical climate risks, such as rising insurance costs or supply chain disruptions. These costs may arise through investments in supplier development, product innovation, and business model adjustments. The financing of these initiatives will be managed through internal resource reallocation, reinvested profits, and product price adjustments for customers.
AddLife has conducted an initial assessment of the Group’s strategic and business resilience in relation to identified material impacts, risks, and opportunities. AddLife’s strategy is based on mitigating risks through due diligence processes and the Group’s risk management framework, while also creating business opportunities through AddLife’s business development efforts, which have a positive impact on people’s lives.
The analysis follows short- (<1 year), medium- (1–5 years), and long-term (>5 years) horizons, with AddLife continuously evaluating its business model to ensure long-term stability and resilience. By coordinating the Group’s sustainability capacity and strengthening support for its subsidiaries, AddLife is building a more resilient business over time.
AddLife has not identified any significant changes in the Group’s material impacts, risks, or opportunities compared to the previous reporting period. The Group’s primary sustainability factors and strategies remain unchanged.
The material impacts, risks, and opportunities described in this report are primarily covered by ESRS Disclosure Requirements, particularly in the following areas:
- Climate Change
- Pollution
- Biodiversity and Ecosystems
- Resource Use and Circular Economy
- Own Workforce
- Workers in the Value Chain
- Consumers and End Users
- Governance
Beyond these standard ESRS requirements, AddLife has also included a company-specific aspect on the positive impact of its products and services on patient and user health.
Management of Impacts, Risks, and Opportunities
Description of the process for identifying and assessing material impacts, risks, and opportunities
AddLife conducts its materiality analysis in accordance with the double materiality perspective outlined in ESRS, considering both financial materiality and impacts on people and the environment. AddLife utilizes a combination of:
- Impact, risk, and opportunity analysis through AddLife’s sustainability due diligence and risk management process
- Scenario analysis for climate based on the TCFD framework, including IPCC’s RCP 8.5 and RCP 2.6
- Stakeholder dialogues with customers, suppliers, and employees
- Data collection from internal systems and external reports to ensure a robust analysis
The impact analysis includes:
- Focus on high-risk areas, including the supply chain and geographically high-risk markets
- Assessment of impacts through the company’s operations and business relationships, informed by AddLife’s newly established due diligence process
- Dialogues with stakeholders and external experts
- Prioritization of negative impacts based on severity and likelihood, and positive impacts based on scale, scope, and likelihood
- Criteria for determining reporting-relevant sustainability issues, in accordance with ESRS 1 section 3.4
The risk and opportunity analysis combines:
- Potential financial effects based on impacts, dependencies, and relationships
- Risk classification according to probability, scope, and type of effect, as per ESRS 1 section 3.3
- Prioritization of sustainability-related risks in comparison with other business risks within AddLife’s overarching Group-level risk management framework
The materiality analysis has been presented to the executive management team and approved by the Board of Directors. In 2025, AddLife will integrate sustainability into the Group's existing internal control processes. Sustainability-related risks are incorporated into the company’s overall risk assessment, where material risks identified in the materiality analysis are evaluated alongside the company’s overall risk register. Sustainability-related opportunities are managed within the Group’s business development efforts.
AddLife uses a combination of internal and external data sources, including:
- Stakeholder dialogues and monitoring of industry standards
- Internal monitoring systems and supplier evaluations
- Official sources such as IPCC, government agencies, and industry reports
AddLife has not made any significant changes compared to the previous reporting period. The company's methods and processes remain unchanged, but analyses and data collection methods are continually being refined and developed.
Disclosure Requirements from ESRS standards covered by the company's sustainability statement
In preparing this sustainability report, the European Sustainability Reporting Standard (ESRS) has been used as a reference framework to structure and present relevant information. Based on the Group’s materiality assessment, AddLife has identified the most relevant Disclosure Requirements and included them in the report.
However, AddLife has not fully adopted ESRS nor undergone a formal review against the standard’s requirements. For transparency, AddLife has chosen to include references to relevant ESRS sections in tables to illustrate how the report aligns with the structure and requirements of the standard. These references are intended to facilitate reading and understanding but should not be interpreted as a claim of full compliance with ESRS.
Table A: Overview of ESRS 2 Disclosure Requirements
Category | Disclosure Requirement | Covered in the Report | Page Number | Comment |
---|---|---|---|---|
1. Basis for Preparation | BP-1 – General Basis for Preparation of Sustainability Statements | Covered | 37 | |
BP-2 – Disclosures in Relation to Specific Circumstances | Covered | 37-39 | ||
2. Governance | GOV-1 – The Role of the Administrative, Management, and Supervisory Bodies | Covered | 39-40 | |
GOV-2 – Information Provided to and Sustainability Matters Addressed by the Undertaking’s Administrative, Management, and Supervisory Bodies | Covered | 40 | ||
GOV-3 – Integration of Sustainability-Related Performance in Incentive Schemes | Covered | 40 | ||
GOV-4 – Statement on Sustainability Due Diligence | Covered | 40-41 | ||
GOV-5 – Risk Management and Internal Controls Over Sustainability Reporting | Covered | 41 | ||
3. Strategy | SBM-1 – Strategy, Business Model, and Value Chain | Covered | 41-43 | |
SBM-2 – Interests and Views of Stakeholders | Covered | 43 | ||
SBM-3 – Material Impacts, Risks, and Opportunities and Their Interaction with Strategy and Business Model | Covered | 43-45 | ||
4. Impact, Risk and Opportunity Management | IRO-1 – Description of the Processes to Identify and Assess Material Impacts, Risks, and Opportunities | Covered | 45-46 | |
IRO-2 – Disclosure Requirements in ESRS Covered by the Undertaking’s Sustainability Statement | Covered | 46-52 |
Table B: Overview of ESRS E1 Disclosure Requirements (Climate Change)
Category | Disclosure Requirement | Covered in the Report | Page Number | Comments |
---|---|---|---|---|
Governance | ESRS 2 GOV-3 – Integration of sustainability-related performance in incentive schemes | Covered | 53 | |
Strategy | E1-1 – Transition plan for climate change mitigation | Covered | 53-54 | |
ESRS 2 SBM-3 – Material impacts, risks, and opportunities and their interaction with strategy and business model | Covered | 54-57 | ||
Impact, Risk & Opportunity Management | ESRS 2 IRO-1 – Description of the processes to identify and assess material climate-related impacts, risks, and opportunities | Covered | 57-58 | |
E1-2 – Policies related to climate change mitigation and adaptation | Covered | 58 | ||
E1-3 – Actions and resources in relation to climate change policies | Covered | 58 | ||
Metrics & Targets | E1-4 – Targets related to climate change mitigation and adaptation | Covered | 58-59 | |
E1-5 – Energy consumption and mix | Covered | 59 | ||
E1-6 – Gross Scopes 1, 2, 3, and Total GHG emissions | Covered | 59-60 | ||
E1-7 – GHG removals and GHG mitigation projects financed through carbon credits | Not material | – | Not material as AddLife does not engage in carbon credits or similar instruments. | |
E1-8 – Internal carbon pricing | Not material | – | Not material as AddLife does not use an internal carbon price. | |
E1-9 – Anticipated financial effects from material physical and transition risks and potential climate-related opportunities | Covered | 60 |
Table C: Overview of ESRS E2 Disclosure Requirements (Pollution)
Category | Disclosure Requirement | Included in the Report | Page Number | Comments |
---|---|---|---|---|
Management of Impacts, Risks, and Opportunities | ESRS 2 IRO-1 - Description of the process to identify and assess material pollution-related impacts, risks, and opportunities | Included | 61 | |
E2-1 – Policies related to pollution | Included | 61 | ||
E2-2 – Actions and resources related to pollution | Included | 61-62 | ||
Metrics & Targets | E2-3 – Targets related to pollution | Included | 62 | |
E2-4 – Pollution of air, water, and soil | Not material | – | Not material AddLife's own operations, only relevant in the supply chain and therefore not applicable. | |
E2-5 – Substances of concern and substances of very high concern | Included | 62 | ||
E2-6 – Anticipated financial effects from pollution-related impacts, risks, and opportunities | Included | 62 |
Table D: Overview of ESRS E4 Disclosure Requirements (Biodiversity and Ecosystems)
Category | Disclosure Requirement | Covered in the Report | Page Number | Comments |
---|---|---|---|---|
Strategy | E4-1 – Transition plan and consideration of biodiversity and ecosystems in strategy and business model | Covered | 62 | |
ESRS 2 SBM-3 – Material impacts, risks, and opportunities and their interaction with strategy and business model | Covered | 62 | ||
Impact, Risk & Opportunity Management | ESRS 2 IRO-1 – Description of processes to identify and assess material biodiversity and ecosystem-related impacts, risks, and opportunities | Covered | 62-63 | |
E4-2 – Policies related to biodiversity and ecosystems | Covered | 63 | ||
E4-3 – Actions and resources related to biodiversity and ecosystems | Covered | 63 | ||
Metrics & Targets | E4-4 – Targets related to biodiversity and ecosystems | Covered | 63 | |
Biodiversity Impact & Financial Effects | E4-5 – Impact metrics related to biodiversity and ecosystem change | Not material | – | Not material in our own operations, only relevant in the supply chain and therefore not applicable. |
E4-6 – Anticipated financial effects from biodiversity and ecosystem-related risks and opportunities | Not material | – | Not material as biodiversity and ecosystem changes are not considered financially material. |
Table E: Overview of ESRS E5 Disclosure Requirements (Resource Use and Circular Economy)
Category | Disclosure Requirement | Covered in the Report | Page Number | Comments |
---|---|---|---|---|
Impact, Risk & Opportunity Management | ESRS 2 IRO-1 – Description of the processes to identify and assess material resource use and circular economy-related impacts, risks, and opportunities | Covered | 64 | |
Policies & Actions | E5-1 – Policies related to resource use and circular economy | Covered | 64-65 | |
E5-2 – Actions and resources related to resource use and circular economy | Covered | 65 | ||
Metrics & Targets | E5-3 – Targets related to resource use and circular economy | Covered | 65 | |
Resource Data & Financial Effects | E5-4 – Resource inflows | Covered | 65 | |
E5-5 – Resource outflows | Covered | 65-66 | ||
E5-6 – Anticipated financial effects from resource use and circular economy-related impacts, risks, and opportunities | Covered | 66 |
Table F: Overview of ESRS S1 Disclosure Requirements (Own Workforce)
Category | Disclosure Requirement | Covered in the Report | Page Number | Comments |
---|---|---|---|---|
Strategy | ESRS 2 SBM-3 – Material impacts, risks, and opportunities and their interaction with strategy and business model | Covered | 68-69 | |
Impact, Risk & Opportunity Management | S1-1 – Policies related to own workforce | Covered | 69-70 | |
S1-2 – Processes for engaging with own workers and workers’ representatives about impacts | Covered | 71 | ||
S1-3 – Processes to remediate negative impacts and channels for own workers to raise concerns | Covered | 71-72 | ||
S1-4 – Taking action on material impacts on own workforce, and approaches to mitigating material risks and pursuing material opportunities related to own workforce, and effectiveness of those actions | Covered | 72-73 | ||
Metrics & Targets | S1-5 – Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities | Covered | 73 | |
S1-6 – Characteristics of the undertaking’s employees | Covered | 74 | ||
S1-7 – Characteristics of non-employee workers in the undertaking’s own workforce | Not material | – | AddLife does not have many non-employees in the organization. | |
S1-8 – Collective bargaining coverage and social dialogue | Covered | 75 | ||
S1-9 – Diversity metrics | Covered | 75 | ||
S1-10 – Adequate wages | Not material | – | AddLifes does not operate in countries or industries where low wages are an issue. | |
S1-11 – Social protection | Not material | – | AddLife does not operate in countries or industries where inadequate social protection is an issue. | |
S1-12 – Persons with disabilities | Not material | – | Not identified as a material discrimination issue in the materiality analysis. | |
S1-13 – Training and skills development metrics | Covered | 76 | ||
S1-14 – Health and safety metrics | Covered | 76-77 | ||
S1-15 – Work-life balance metrics | Covered | 77 | ||
S1-16 – Compensation metrics (pay gap and total compensation) | Covered | 77 | ||
S1-17 – Incidenter, klagomål och allvarliga kränkningar av mänskliga rättigheter | Omfattas | 77-78 |
Table G: Overview of ESRS S2 Disclosure Requirements (Workers in the Value Chain)
Category | Disclosure Requirement | Covered in the Report | Page Number | Comments |
---|---|---|---|---|
Strategy | ESRS 2 SBM-3 – Material impacts, risks, and opportunities and their interaction with strategy and business model | Covered | 78-79 | |
Impact, Risk & Opportunity Management | S2-1 – Policies related to value chain workers | Covered | 80 | |
S2-2 – Processes for engaging with value chain workers about impacts | Covered | 81 | ||
S2-3 – Processes to remediate negative impacts and channels for value chain workers to raise concerns | Covered | 81-82 | ||
S2-4 – Taking action on material impacts on value chain workers, and approaches to managing material risks and pursuing material opportunities related to value chain workers, and effectiveness of those actions | Covered | 82 | ||
Metrics & targets | S2-5: Targets for managing material negative impacts, enhancing positive impacts, and addressing material risks and opportunities | Covered | 83 |
Table H: Overview of ESRS S4 Disclosure Requirements (Consumers and End Users)
Category | Disclosure Requirement | Covered in the Report | Page Number | Comments |
---|---|---|---|---|
Strategy | ESRS 2 SBM-2 – Interests and views of stakeholders | Covered | 84-85 | |
ESRS 2 SBM-3 – Material impacts, risks, and opportunities and their interaction with strategy and business model | Covered | 85 | ||
Impact, Risk & Opportunity Management | S4-1 – Policies related to consumers and end-users | Covered | 85 | |
S4-2 – Processes for engaging with consumers and end-users about impacts | Covered | 85 | ||
S4-3 – Processes to remediate negative impacts and channels for consumers and end-users to raise concerns | Covered | 85-86 | ||
S4-4 – Taking action on material impacts on consumers and end-users, and approaches to managing material risks and pursuing material opportunities related to consumers and end-users, and effectiveness of those actions | Covered | 86-87 | ||
Metrics & Targets | S4-5 – Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities | Covered | 87 |
Table I: Overview of ESRS G1 Disclosure Requirements (Business Ethics and Governance).
Category | Disclosure Requirement | Covered in the Report | Page Number | Comments |
---|---|---|---|---|
Governance | ESRS 2 GOV-1 – The role of the administrative, supervisory, and management bodies | Covered | 88-89 | |
Impact, Risk & Opportunity Management | G1-1 – Corporate culture and business conduct policies | Covered | 89 | |
G1-2 – Management of relationships with suppliers | Covered | 90 | ||
G1-3 – Prevention and detection of corruption and bribery | Covered | 90-91 | ||
Metrics & Targets | G1-4 – Confirmed incidents of corruption or bribery | Covered | 91 | |
G1-5 – Political influence and lobbying activities | Not material | – | Not material as AddLife does not engage in lobbying. | |
G1-6 – Payment practices | Not material | – | Not material as no risks or impacts have been identified in the materiality analysis. |