SUSTAINABILITY REPORT
E1 Climate change
Strategy and management of material impacts, risks and opportunities
Process for the double materiality assessment related to climate change
ESRS 2, IRO-1 Description of the processes to identify and assess material climate-related impacts, risks and opportunities
AddLife has, as part of its double materiality assessment, identified material climate-related impacts, risks and opportunities. The materiality assessment covers both potential and actual climate-related impacts and is based partly on a qualitative analysis through internal and external stakeholder dialogues, and partly on a review of activities and emission sources in AddLife’s own operations as well as in the upstream and downstream value chain. AddLife has identified an actual negative impact on the climate through greenhouse gas emissions, energy consumption and energy mix arising from the manufacturing, distribution and use of the Group’s products. This negative impact is primarily concentrated upstream in the value chain, linked to the extraction of resources and the manufacturing of the components and products that AddLife distributes.
| MATERIAL IMPACT, RISK OR OPPORTUNITY | ||
| Climate change adaptation | Risk | U, O |
| Climate change mitigation | Impact (actual, negative) | U, O, D |
| Risk | U, O, D | |
| Opportunity | U, O, D | |
| Energy | Impact (actual, negative) | U, O, D |
| Upstream (U), Own operation (O), Downstream (D) | ||
In AddLife’s own operations, greenhouse gas emissions arise primarily from fuel consumption in vehicles and from electricity consumption, heating and cooling in offices. Downstream, additional emissions arise from customers’ use of the products and from the waste management of these products.
Analysis of risks and opportunities based on scenarios
To identify material climate-related risks and opportunities and to assess the resilience of AddLife’s business model, operations and strategy, a risk and opportunity analysis has been carried out in line with the recommendations of the TCFD (Task Force on Climate-related Financial Disclosures). The analysis has been conducted based on qualitative assessments at an overarching level, without using data for specific geographical locations. It has been performed from a value chain perspective and covers both physical climate-related risks, including acute and chronic events, as well as transition risks and opportunities over the short term (1 year), medium term (1–5 years) and long term (more than 5 years), in accordance with the definitions in the ESRS. The time horizons are considered to align well with the turnover rate of the Group’s assets and with its strategic planning and decision‑making processes. The identified risks and opportunities have been evaluated based on the likelihood of their occurrence, the magnitude of potential financial effects, the organisation’s vulnerability, and the expected speed of onset and duration of these effects.
To ensure a relevant and well-founded assessment that takes into account both extreme and optimistic future outcomes, the analysis has been based on a scenario with continued high global greenhouse gas emissions (RCP 8.5) and a scenario with strong climate action (RCP 2.6). The scenarios originate from the UN Intergovernmental Panel on Climate Change (IPCC), are defined at regional level and extend to the year 2100. They are based on the latest science and incorporate climate research from around the world. Further information on the scenarios applied can be found under “Methodology and definitions” in this chapter.
AddLife has primarily used the scenarios as qualitative input to risk assessment and strategy work, but has not identified any critical climate-related assumptions that currently affect the financial statements or financial planning. The assessment was initiated in 2024 and the results were presented to and approved by the Board of Directors in 2025.
Physical climate-related risks
Acute risks refer to sudden, extreme climate- or weather-related events, and the analysis has identified risks such as flooding, extreme rainfall events, storms, heatwaves and wildfires. Chronic risks refer to long-term changes in the climate, and the analysis has identified risks related to rising sea levels, gradually increasing average temperatures, as well as prolonged periods of drought and altered precipitation patterns. These risks have primarily been identified under a scenario of continued high global greenhouse gas emissions (RCP 8.5). For AddLife, both the identified acute and chronic climate-related risks may result in damage to inventories or in disruptions to the supply chain and to the Group’s own operations relating to logistics, production and infrastructure over the short, medium and long term. This may lead to revenue losses caused by delays, increased impairments of damaged inventories, and higher transportation and insurance costs.
Climate-related transition risks and opportunities
Climate-related transition risks and opportunities relate to the financial consequences arising from society’s transition to a more low‑carbon economy. AddLife has identified risks and opportunities linked to more stringent regulations, technological developments, changing customer requirements, the competitive landscape, reputation and access to capital. These risks and opportunities have primarily been identified under a scenario with strong climate action (RCP 2.6).
For AddLife, the transition to a low‑carbon economy may entail both risks and opportunities, particularly over the medium and long term. Stricter regulations and customer requirements may entail increased investments in product development and higher costs for necessary certifications. As suppliers transition, costs for raw materials, purchasing and transportation are also expected to increase, which may be reflected in the prices of the products distributed by AddLife. If the transition in the value chain fails to materialise, AddLife risks loss of revenue, reduced market shares and reputational damage. By developing climate‑adapted products, investing in new technologies and collaborating with resilient suppliers, the Group can instead capture growth opportunities and strengthen the stability of the supply chain.
Material impacts, risks and opportunities related to climate change
ESRS 2 SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model
AddLife has, through its risk and opportunity analysis and the two scenarios that have been evaluated, assessed the resilience of the Group’s business model, operations and strategy by qualitatively evaluating existing and expected financial effects from climate-related risks over the short, medium and long term.
AddLife is primarily exposed to physical climate-related risks through its global value chain and the business’s strong dependence on its business partners. Climate-related disruptions or delays in the supply chain may have direct negative effects on the Group’s financial position and performance. The subsidiaries’ exposure to these risks varies depending on the nature of their operations and the ability to replace existing suppliers. AddLife’s own operations are also exposed to physical climate-related risks, particularly those subsidiaries operating in Southern Europe, a region that is more exposed to extreme weather. Sudden weather events develop rapidly, and if an individual subsidiary is affected, damage to inventories or disruptions to its own operations can cause direct financial losses as well as reputational damage. From a Group perspective, however, the operations are considered to be relatively resilient to sudden extreme weather events. This is partly because the decentralised business model means that approximately 85 operating subsidiaries are located in different geographical areas, which helps to spread risk exposure and reduce vulnerability to sudden weather events, which are normally limited to local or regional areas. In addition, AddLife actively works with efficient management of its working capital, which includes inventory management. At the same time, presence in several European markets means that AddLife is exposed to various types of chronic climate change, where the effects build up over time and require long-term adaptation efforts.
Transition-related risks and opportunities are also closely linked to AddLife’s upstream value chain. More stringent regulations and customer requirements are expected, with a high degree of likelihood, to require investments in product development and lead to higher costs for necessary certifications. As a result of the transition throughout the supply chain, costs for raw materials, purchasing, infrastructure and transportation are also expected to rise, which in turn will be reflected in the prices of the products distributed by AddLife. At present, the scope and focus of customer requirements vary between different geographical markets, but are expected to increase over the longer term. There is uncertainty regarding the Group’s customers’ willingness and financial capacity to absorb the higher costs that follow from more stringent requirements on the transition of the value chain.
In the long term, the transition to a low‑carbon economy across the entire value chain is assessed to be of great importance in meeting more stringent requirements and in reducing the risk of revenue loss from declining market shares, rising costs and reputational damage. By working proactively, AddLife can instead capture growth opportunities in new market segments, strengthen reliability and reduce disruptions in the supply chain by developing and investing in climate‑adapted products and new technology, and by collaborating with resilient suppliers and customers. One uncertainty factor identified regarding the transition within the Life Science sector is the potential trade-offs that may arise between different regulatory frameworks in the European market. The sector is characterised by strict regulations and requirements regarding product quality and safety, where the new EU regulations on medical devices (MDR) and in vitro diagnostic medical devices (IVDR) will in many cases involve complex procedures for CE certification. This results in inherently long development cycles, which may lead to delays and vulnerability to transition-related climate risks.
The climate-related impacts, risks and opportunities identified by AddLife will be addressed in the Group’s climate action plan and will form the basis for strategic initiatives, actions and resource allocation.
Climate transition plan
E1-1 Transition plan for climate change mitigation
Based on the risk and opportunity analysis carried out, AddLife prepared a draft group-wide climate transition plan during the previous financial year. The intention was that this plan, together with new climate targets in accordance with the criteria of the Science Based Targets initiative (SBTi), would be adopted by the Board of Directors during the reporting period. During the year, the SBTi published a draft but has not yet finalised its new Net-Zero Standard, and AddLife has therefore chosen to await the final standards in order to assess the extent to which they are appropriate for the Group’s climate work. The Group has therefore not had an adopted climate transition plan in place during the reporting period.
AddLife intends to set new climate targets in 2026 and, in connection with this, to adopt and implement an updated climate transition plan with specific actions to manage the identified climate-related impacts, risks and opportunities.
Policies related to climate change
E1-2 Policies related to climate change mitigation and adaptation
During the reporting period, AddLife has worked on developing a climate policy as part of the Group’s climate transition plan. The policy has not yet been adopted by the Board of Directors, as the Group is awaiting the new standards from the SBTi in order to evaluate and set new climate targets for the Group.
Actions and resources related to climate change
E1-3 Actions and resources in relation to climate change policies
Going forward, AddLife’s climate transition plan will form the basis for the Group’s efforts and actions to reduce greenhouse gas emissions and to manage climate-related risks and opportunities in its own operations as well as in the upstream and downstream value chain.
The actions will be integrated into AddLife’s strategic management of sustainability and will be informed by new regulatory requirements and expectations from customers and investors. AddLife’s climate policy, climate transition plan and actions have not yet been adopted by the Board of Directors, but are expected to broadly include:
- Actions to address climate-related impacts in AddLife’s upstream and downstream value chain. This work will be carried out within the framework of the group-wide sustainability due diligence process in the supply chain. More information about this process is provided under “Sustainability due diligence in the supply chain” in chapter G1 Business conduct.
- Actions to address climate-related impacts in AddLife’s own operations through the gradual transition from fossil to renewable fuels and electricity.
- Actions to address climate-related risks and opportunities in AddLife’s own operations as well as in the upstream and downstream value chain. Initially, this will include an in-depth risk analysis of the Group’s own facilities to improve the understanding of risk exposure, with the intention of extending the analysis to the supply chain over time.
Metrics and targets
Targets related to climate change
E1-4 Targets related to climate change mitigation and adaptation
During previous years, AddLife has evaluated its climate work against an emissions intensity reduction target with 2022 as the base year and 2025 as the target year. Following last year’s review of emission sources, the Group has not continued to monitor this target during the current reporting period, as the historical emissions data on which the target was based is no longer considered comparable. The Group’s greenhouse gas emissions for the current year have instead been compared with the outcome for the previous reporting period.
The ambition for the year has been to update the Group’s climate targets in accordance with the criteria of the Science Based Targets initiative (SBTi), in order to ensure that AddLife’s climate work is aligned with the 1.5°C goal under the Paris Agreement and to achieve climate neutrality by 2050 at the latest. During the year, the SBTi has published drafts but has not yet finalised its new Net‑Zero Standard, and AddLife has therefore chosen to await the final standard in order to assess the extent to which it is appropriate for the Group’s climate work.
AddLife intends to set the Group’s new climate targets and define a new base year in 2026. The new climate targets will inform the Group’s climate policy and climate transition plan with regard to specific actions to address the identified impacts, risks and opportunities.
Energy consumption and energy mix
E1-5 Energy consumption and mix
During the reporting period, energy consumption amounted to 30,591 MWh and decreased by 4 percent compared with 2024. Energy consumption consisted of 78 percent fossil sources, 3 percent nuclear sources and 19 percent renewable sources. Renewable energy consumption was slightly higher in 2025 compared with the previous period, of which 56 percent came from contracts and 29 percent from guarantees of origin. The remaining renewable energy has been calculated based on the residual mix of each country. Only a small share, corresponding to 3 percent, consisted of self-produced energy from solar panels.
| Energy consumption and mix (MWh)1) | 20253) | 20244) |
|---|---|---|
| Energy consumption from fossil sources | 23,854 | 25,663 |
| of which fuel consumption from coal | - | - |
| of which fuel consumption from crude oil and petroleum products | 16,850 | 18,397 |
| of which fuel consumption from natural gas | 1,874 | 1,490 |
| of which fuel consumption from other fossil sources | 669 | 1,360 |
| of which consumption from purchased electricity, heat, steam or cooling from fossil sources | 4,461 | 4,416 |
| Share of fossil energy sources of total energy consumption, % | 78 | 80 |
| Energy consumption from nuclear sources | 844 | 1,110 |
| Share of nuclear sources of total energy consumption, % | 3 | 3 |
| Energy consumption from renewable sources | 5,893 | 5,190 |
| of which fuel consumption from renewable energy sources | 433 | 202 |
| of which consumption from purchased electricity, heat, steam or cooling from renewable sources | 5,295 | 4,975 |
| of which consumption of self-generated non-fuel-based energy | 165 | 13 |
| Share of renewable sources of total energy consumption, % | 19 | 17 |
| Total energy consumption | 30,591 | 31,963 |
| Energy intensity from activities in high-climate-impact sectors (MWh/SEKm)2) | 2.9 | 3.1 |
| 1) The information has not been validated by any external party other than within the scope of the statutory limited review. | ||
| 2) Energy intensity has been calculated based on the net sales line in the Group’s income statement (including notes 5 and 6). The metric has been calculated for the Group as a whole based on classification in NACE Division G. ESRS MDR-M § 77 (b) | ||
| 3) The 2025 outcome does not include newly acquired subsidiaries during the period. | ||
| 4) Comparative figures for 2024 have been adjusted by 16,926 MWh for fossil sources, 663 MWh for nuclear sources and -118,497 MWh for renewable sources, as a result of an updated method and identified errors. | ||
Total greenhouse gas emissions
E1-6 Gross Scopes 1, 2, 3 and Total GHG emissions
During 2025, total greenhouse gas emissions amounted to 427,151 tCO2e, a decrease of 1 percent compared with the previous reporting period. Direct emissions in scope 1 decreased by 4 percent, mainly attributable to changes in the vehicle fleet and the use of company cars. The largest relative change relates to indirect emissions in scope 2. Market-based emissions increased by 14 percent due to a lower share of guarantees of origin, while location-based emissions decreased by 27 percent as a result of an updated set of emission factors. Other indirect emissions in scope 3, which account for the largest share of the Group’s climate impact, were essentially unchanged compared with the previous period. Reduced emissions in category 11: Use of sold products were offset by increased emissions from category 1: Purchased goods and services and category 4: Upstream transportation and distribution. Overall, AddLife’s total greenhouse gas emissions were at roughly the same level as in 2024.
| Greenhouse gas emissions (tCO2e)1), 2) | 2025 | 20243) | ∆ % |
|---|---|---|---|
| Direct greenhouse gas emissions, Scope 1 | |||
| Gross greenhouse gas emissions Scope 1 | 4,896 | 5,088 | -4 |
| Indirect greenhouse gas emissions, Scope 2 | |||
| Gross greenhouse gas emissions Scope 2 (location-based) | 1,203 | 1,658 | -27 |
| Gross greenhouse gas emissions Scope 2 (market-based) | 2,444 | 2,138 | 14 |
| Other indirect greenhouse gas emissions, Scope 3 | |||
| Gross greenhouse gas emissions Scope 3 (material categories) | 421,052 | 422,593 | -0 |
| of which category 1: Purchased goods and services | 356,894 | 352,173 | 1 |
| of which category 2: Capital goods | 7,602 | 6,783 | 12 |
| of which category 3: Fuel- and energy-related activities | 1,627 | 1,702 | -4 |
| of which category 4: Upstream transportation and distribution | 25,629 | 21,023 | 22 |
| of which category 5: Waste generated in operations | 46 | 80 | -43 |
| of which category 6: Business travel | 3,563 | 3,203 | 11 |
| of which category 7: Employee commuting | 3,210 | 3,111 | 3 |
| of which category 9: Downstream transportation and distribution | 933 | 2,319 | -60 |
| of which category 11: Use of sold products | 19,969 | 30,622 | -35 |
| of which category 12: End-of-life treatment of sold products | 1,579 | 1,576 | 0 |
| Total greenhouse gas emissions | |||
| Total greenhouse gas emissions (location-based) | 427,151 | 429,340 | -1 |
| Total greenhouse gas emissions (market-based) | 428,393 | 429,820 | -0 |
| Total biogenic gross emissions | |||
| of which related to Scope 1 | 219 | 204 | 7 |
| of which related to Scope 2 | - | - | - |
| of which related to Scope 3 | - | - | - |
| 1) The information has not been validated by any external party other than within the scope of the statutory limited review. | |||
| 2) No base year has been stated as AddLife is not evaluating any target for the reporting period. | |||
| 3) Comparative figures for 2024 have been adjusted by 503 tCO2e for Scope 2 (location-based), 284 tCO2e for Scope 2 (market-based) and 4,457 tCO2e for Scope 3, as a result of identified errors. | |||
AddLife’s emissions intensity has been calculated based on the total greenhouse gas emissions presented in the table above, allocated over the Group’s net sales. Emissions intensity amounted to 41 tCO2e/SEKm for the reporting period and has decreased marginally compared with the previous year.
| Emissions intensity of greenhouse gas emissions per net sales (tCO2e/SEKm)1) | 2025 | 20243) | ∆ % |
|---|---|---|---|
| Total greenhouse gas emissions (location-based) per net sales2) | 41 | 42 | -0 |
| Total greenhouse gas emissions (market-based) per net sales2) | 41 | 42 | -0 |
| 1) The information has not been validated by any external party other than within the scope of the statutory limited review. | |||
| 2) Emissions intensity has been calculated based on the net sales line in the Group’s income statement (including notes 5 and 6). | |||
| 3) Comparative figures for 2024 have been adjusted by 1 tCO2e/SEKm. | |||
Method and definitions
Scenario descriptions from the Group’s risk and opportunity analysis
Continued high global greenhouse gas emissions (RCP 8.5)
The scenario entails continued high emissions with no major actions to limit climate change. Efforts are taken primarily in reaction to climate‑related natural disasters. Key features of the scenario:
- Carbon dioxide emissions triple, leading to a temperature increase of more than 4°C by 2100.
- Fossil fuels dominate energy production.
- Rapid population growth and economic expansion drive increased emissions.
- Polar ice and glaciers melt rapidly, causing a significant rise in sea levels.
- Extreme weather events such as heatwaves, droughts and storms become increasingly common.
- Ecosystems and biodiversity are threatened, and many species are unable to adapt.
- Air quality, health problems and food and water shortages are worsening, particularly for vulnerable groups.
- Climate change contributes to conflicts, migration and economic instability.
Strong climate action (RCP 2.6)
In this scenario, proactive actions are taken to limit climate change, leading to lower warming and less severe consequences compared with RCP 8.5. Key features of the scenario:
- Carbon dioxide emissions peak around 2050 and then decline through strong actions.
- The 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.
- More moderate sea level rise and fewer extreme weather events than in high-emission scenarios.
- Ecosystems and biodiversity are less affected, giving species better opportunities to adapt.
- Health risks such as air pollution and heat stress decrease, but remain in certain regions.
- Socioeconomic effects are more manageable, with fewer conflicts and climate-related migration.
Calculation of greenhouse gas emissions
Basis for calculation and presentation
AddLife’s greenhouse gas emissions have been calculated in accordance with the Greenhouse Gas Protocol (GHG Protocol), applying an operational control approach. Greenhouse gas emissions are presented as tonnes of carbon dioxide equivalents (tCO2e).
Applicable greenhouse gases
Total carbon dioxide equivalents include all applicable greenhouse gases and have been converted using Global Warming Potential (GWP) values from the IPCC’s Fifth or Sixth Assessment Report, depending on the set of available emission factors.
Calculation of greenhouse gases in Scope 1
Scope 1 comprises greenhouse gas emissions from the company’s vehicles, stationary combustion in boilers and furnaces, leakage of refrigerants from cooling and air conditioning systems, as well as self‑generated energy from renewable sources. The calculations are primarily based on activity data, and estimates are used to ensure complete reporting. The methodology draws on both supplier‑specific emission factors and average emission factors from the Department for Environment, Food and Rural Affairs (DEFRA), the International Energy Agency (IEA) and the Association of Issuing Bodies (AIB).
Calculation of greenhouse gases in Scope 2
Scope 2 comprises greenhouse gas emissions from purchased and consumed electricity, heating and cooling. The calculations are primarily based on activity data, and estimates are used to ensure complete reporting. The methodology relies mainly on average emission factors, while supplier‑specific emission factors have been used to some extent. For carbon dioxide equivalents from electricity, emission factors from the Association of Issuing Bodies (AIB) have been used, applying the production mix for the location‑based method and the residual mix for the market‑based method. For heating and cooling, emission factors from both the Department for Environment, Food and Rural Affairs (DEFRA) and national industry associations have been used.
Calculation of greenhouse gases in Scope 3
Scope 3 covers the material categories Purchased goods and services (3.1), Capital goods (3.2), Fuel‑ and energy‑related activities (3.3), Upstream transportation and distribution (3.4), Waste generated in operations (3.5), Business travel (3.6), Employee commuting (3.7), Downstream transportation and distribution (3.9), Use of sold products (3.11) and End‑of‑life treatment of sold products (3.12). The categories Upstream leased assets (3.8), Processing of sold products (3.10), Downstream leased assets (3.13), Franchises (3.14) and Investments (3.15) do not give rise to any, or only very limited, greenhouse gas emissions and have therefore been assessed as non‑material and excluded from the calculations.
Calculations of upstream greenhouse gas emissions are based both on a spend‑based method and on activity data with associated average emission factors. Downstream greenhouse gas emissions have been calculated using an estimated model for the products’ lifetime energy consumption. The model takes into account actual or estimated numbers of products sold, rated power, daily use, annual operating hours, waste volumes, expected lifetime, markets and the electricity grid into which the products are connected. For category 11, the use of refrigerants and aerosols is also estimated. The calculations are mainly based on emission factors from the Department for Environment, Food and Rural Affairs (DEFRA) and Exiobase. Only a small share of AddLife’s total Scope 3 greenhouse gas emissions has been calculated using primary data. Almost 95 percent of Scope 3 emissions are based on secondary data sources, primarily spend‑based calculations.
Data sources
Activity data is based, among other things, on invoices, electricity meters, travel management platforms, employee surveys and information from suppliers. Data has also been estimated using trend‑based estimates, by extrapolating activity data or by making estimates using proxy data and industry averages.
Collection of data
Data has been collected locally from the subsidiaries’ internal ERP and inventory management systems, as well as through confirmations and reports prepared by third parties. The data has then been consolidated, and climate calculations have been performed using a group‑wide reporting system administered by the Group’s sustainability team.
Changes during the reporting period
No material changes in methodology, sources of emission factors, other sources or data collection have occurred during the reporting period compared with the previous period.
Base year assessment
As a general principle, the base year is adjusted in the event of any material change in the emissions inventory, structural changes, data errors or the timeline, in order to ensure comparability of metrics over time. During the reporting year, AddLife has not assessed any sustainability target against a base year. Instead, the Group’s greenhouse gas emissions for the current year have been monitored in relation to the outcome for the previous financial year. AddLife intends to set new group‑wide climate targets and define a new base year in 2026.