Annual report 2022

— Sustainability review

Sustainability review

medmix understands its responsibility with regard to our impact on the environment and society, both within the company and in the various communities where we operate. Therefore, the company has continued to accelerate sustainability efforts aimed at minimizing any detrimental impacts, maximizing the benefits and future-proofing growth. At the same time, we invest in building capabilities to adjust to the evolving regulatory landscape and spurring competitiveness and innovation.

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"At medmix, we bring innovation to life by continuously improving our processes, products, and solutions focused on sustainability for the future of our employees, our communities, and our customers."

Itee Satpathy

Chief Human Resources, Sustainability & Communication Officer

Sustainability Framework

The medmix approach to Sustainability revolves around People, Planet and Profit – understood to be prosperity as this goes beyond the financial profit of our company.

Through our business and stakeholders’ analyses, we identified current macro trends including mitigating climate risk, stakeholder capitalism, shifts in customer preferences, compliance with current and emerging legislation, water scarcity, biodiversity, and resource preservation.

Responding to these trends, we have continued identifying, and assessing our materiality and impacts to strengthen our sustainability strategy and adjust our roadmap to deliver against our ambitious targets.

We deploy robust site environmental and occupational health & safety management systems to drive sustainable performance, recognizing and developing our teams and supporting our local communities.

Our Values guide our Actions:

United Nations Global Compact

In 2022, medmix committed to the United Nations Global Compact, and making its principles part of our strategy. We support the Sustainable Development Goals (SDG) and act to help achieve them.

The sections below provide an initial overview of sustainability topics, their relationship with the SDG and outline how we intend to manage them. The information in the tables reflects our sustainability management system at the end of 2022 or related to 2022.

Overview of our area of focus 

Planet

At medmix, we recognize the importance of taking a science-based approach to the reduction of our greenhouse gases to meet the goals of the Paris Agreement in limiting global warming to well-below 2°C above pre-industrial levels, and to pursue efforts to limit global warming to 1.5°C.

To accelerate our corporate actions, we have committed to the Science Based Targets initiative, and will define our baseline and targets within the required timeframe.

During 2022, medmix was assessed according to CDP Climate Change, and achieved an “awareness” (C) rating, thus achieving our target 3 years ahead of schedule.

SDG Contributions:

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Details of our progress towards our targets are as follow:

Planet

Description

 

Target

 

Progress

Management Systems

 

 

 

 

Strive to continuously improve environmental performance

 

100% of manufacturing sites certified according to ISO 14001 standard by 2025

 

33% of 12 manufacturing sites have achieved ISO 14001 certification This is aligned with the expected timeline

 

100% of manufacturing sites certified according to ISO 50001 standard by 2025

 

1 manufacturing site has achieved ISO 50001 certification This is aligned with the expected timeline

Climate Change

 

 

 

 

Aim to achieve Net Zero greenhouse gas emissions

 

Reduce medmix-own emissions 1 by -30% by 2025

 

medmix committed to SBTi (Science Based Targets initiative) and has been accepted. The formal reduction targets will be confirmed within 24 months as per the requirements The company’s annual emissions improvement will be publicly communicated once it has been externally verified

 

Reduce value chain emissions by 50% by 2030

 

 

Achieve medmix Net Zero on greenhouse gas emissions by 2050

 

Drive transition to low-carbon electricity

 

100% of medmix sites supplied with low-carbon or renewable electricity by 2025

 

11 of 15 sites sourced low-carbon electricity (106399 GJ, representing 73% of the total consumption) This is an increase of 3 sites and up from 63% in 2021

Focus on energy efficiency

 

Year-on-year improvement in energy efficiency indexed to revenue

 

244736 GJ of energy were consumed during 2022, equivalent to 0.51 GJ/kCHF revenue This is an increase of 1.6% versus the previous year The energy efficiency was impacted by site expansion and a correction to previously reported 2021 data in 1 site

Water Stewardship

 

 

 

 

Access to safe drinking water and sanitation

 

Complete WASH assessment for all manufacturing sites in 2023

 

Our sites in Shanghai, Sao Paulo and Bengaluru lie in water scarcity areas according to the Aqueduct Water Risk Atlas In 2023, for the first time, all our manufacturing sites will be assessed to ensure safe access to drinking water and sanitation for our employees

Focus on water withdrawal

 

Year-on-year improvement in water withdrawal efficiency indexed to revenue

 

715984 m 3 of water were withdrawn during 2022, equivalent to 1.50 m 3 /kCHF revenue This is an increase of 8.7% versus the previous year The water withdrawal was impacted by the increased use of once-through non-contact cooling water (673538 m 3 - not consumed) as well as sites returning to the office following the easing of COVID-19 restrictions

Waste for Disposal

 

 

 

 

Create value from unavoidable waste

 

Zero waste to landfill by 2025

 

10 of our sites have achieved Zero waste to landfill, an increase from 9 during the previous year, and no hazardous waste went to landfill This is aligned with the expected timeline

1) Scope 1, Scope 2 and partial Scope 3 (Fuel and energy related activities + Business Travel)

Profit

We recognize that our responsibilities are not limited to delivering strong financial results. We proactively direct our resources towards innovations that contribute to more sustainable solutions.

We promote and provide sustainable technologies with long-term value, by working to reduce the environmental footprint of our products, by incorporating eco-design principles from the development phase, by increasing the use of Post-Consumer Resin (PCR) and bio-attributed plastics where possible, and by focusing on secondary packing.

SDG Contributions:

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Details of our progress towards our targets are as follow:

Profit

Description

 

Target

 

Current situation/explanation

Increase Sales of Sustainable Products 2

 

 

 

 

Launch products meeting the medmix definition

 

Year-on-year increase in availability of products

 

5 products were launched during 2022 meeting the definition, with at least 10 targeted during 2023 Within Beauty, 8.9% of Sales met the definition, vs. 6.3% in 2021

Reduce climate change impact from own packaging

 

100% of logistics packaging designed for recycling by 2024

 

To enable our customers to recycle the packaging that they receive from medmix, all the packaging we use for the transportation of our products shall be designed for recycling

Gold Standard Recognition

 

 

 

 

Bring added transparency and a quantitative approach through expert evaluation

 

100% of manufacturing sites rated Gold (or higher) by EcoVadis by 2025

 

33% of manufacturing sites have achieved at least Gold rating, 2 more than 2021

 

Rating of “C” or above on CDP Climate Change by 2025

 

Achieved during 2022, equaling the industry average The Beauty segment (under the GEKA brand) achieved a B rating, outperforming the industry

Eco-design

 

 

 

 

Embed Eco-design principles into the product life cycle

 

All new products to respect Eco-design principles

 

Established competency and capability in Life Cycle Assessment. Eco-design principles cascaded to teams for use during development projects Climate change internal screenings will be systematically introduced during 2023

2) Minimum of 30% reduction in CO 2(eq.) cradle-to-gate

People

As an aspiring employer of choice, we enable an inclusive workplace for our diverse workforce, promote impactful development opportunities for our employees and facilitate engagement through open and dynamic dialogue. We believe in going the extra mile to support our communities and our employees. Safety is a key priority for us. We promote a safe and healthy work environment and are committed to eliminating hazards, reducing occupational health and safety risks for everyone present at our sites.

The Employee Survey is a key contributor to the development and engagement of our employees. Our 2022 employee survey showed continued commitment of our managers and supervisors in supporting and enabling their teams. medmix employees feel that we treat each other with respect and dignity, and inclusion emerged as a top strength, which is important as diversity of backgrounds and opinions promotes discussion and new ideas, thus greatly contributing to our ability to innovate and grow.

SDG Contributions:

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Details of our progress towards our targets are as follow:

People

Description

 

Target

 

Current situation/explanation

Management Systems

 

 

 

 

Strive to continuously improve occupational health & safety performance

 

100% of manufacturing sites certified according to ISO 45001 standard by 2025

 

33% of manufacturing sites have achieved ISO 45001 certification This is aligned with the expected timeline

Promote Safe and Inclusive Workplace

 

 

 

 

Recordable Injury Frequency Rate 3

 

Year-on-year improvement

 

The medmix Recordable Injury Frequency Rate = 3.65 The Recordable Injury Frequency Rate is being reported publicly for the first time, and 2022 will serve as the baseline against which we will drive improvement

Lost Time Injury Frequency Rate 3

 

2022 = 2.7

 

The medmix Lost Time Injury Frequency Rate = 2.43 medmix suffered 17% less Lost Time Injuries than during 2021

Severity Rate 4

 

Year-on-year improvement

 

While there was an increase in the severity rate (2022 = 50.2 vs. 2021 = 23.8) this was due to 2 longer-term injuries combined with a 3.5% reduction in hours worked The possibility of restricted work is proactively proposed to injured persons to help their recovery and reintegration into the workforce

# of work-related fatality cases

 

Zero cases

 

No work-related fatalities occurred during 2022

EHS (Environment, Health, and Safety) observations

 

2022 = 1071

 

1036 EHS observations were made during 2022, fewer than targeted due to closure of Poland

Safety walks

 

2022 = 1260

 

1610 Safety walks were performed during 2022, an increase of 10% versus the previous year

Employee Engagement, Learning and Inclusion

 

 

 

 

Employee engagement

 

Year-on-year improvement in % of employee survey respondents indicating they feel sustainably engaged with medmix

 

83% of eligible employees participated in the survey, and 84% of respondents are sustainably engaged. This is an increase from the sustainable engagement rating of 83% in 2021

Life-long learning

 

Year-on-year improvement in % of managers participating in virtual learning programs to enable flexible employee-led learning

 

100% of managers were invited to join the EdCast learning platform

We enable an inclusive workplace for our diverse workforce

 

% Women in management

 

29% of medmix managers are female

 

 

% Women in workforce

 

46% of medmix employees are female

 

 

Swiss Gender Pay Gap

 

No unexplained significant Pay Gap was identified in the Swiss medmix workforce

Community Engagement

 

 

 

 

We engage and support communities where we operate

 

At least one community project per medmix site annually (total 15)

 

medmix and its employees overachieved with engaging and supporting the local communities, completing 32 projects in 2022, an increase of 77% compared to 2021

3) Per million hours worked, employees only

4) # of lost workdays per million hours worked, employees only

List of abbreviations:

GJ = gigajoule

m3 = cubic meters