Annual report 2023

Approach and progress

Materiality Assessment

During 2023, medmix conducted a materiality assessment to identify and assess the potential environmental, social, employee-related, human rights and combatting corruption topics that could affect the company’s business performance.

The assessment was performed in accordance with the requirements of the Swiss Code of Obligations and the reporting standard of the Global Reporting Initiative (GRI).

The following steps were taken during the assessment process:

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As a result of the assessment, medmix identified six material issues, covering the 14 most relevant topics, and in line with the Sustainability Strategy:

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Presentation of concepts

Business Code of Conduct

medmix is committed to preventing corruption and has a zero-tolerance policy towards corrupt practices. We have developed controls to mitigate the risk of corruption, such as the implementation of our Business Code of Conduct, the Anti-Corruption Directive, the Healthcare Compliance Directive and our Delegation of Authority Directive. We have established a system for monitoring and reporting corruption and for investigating and addressing corruption-related issues. The policy document addresses the combatting corruption material issue.

Quality Policy

medmix is active in the design, development and manufacturing of plastic components and finished products, for the Healthcare and Consumer & Industrial business areas, mostly within the business-to-business (B2B) framework but also as legal manufacturer of selected products (applicator systems as medical devices and dispensers as machinery) in selected countries. For the Healthcare business area, medmix is also active as a service provider of specific services such as the filling of dental material and contract manufacturing of combination products.

Product and service quality and customer satisfaction  – for the B2B framework – and product safety and regulatory compliance – for the business as legal manufacturer – represent key drivers and objectives for medmix. This policy responds to the product safety material issue.

Sustainability Policy

Sustainability is engrained in our corporate strategy and embedded in daily business – with the necessary management frameworks, systems and processes. This policy considers the material issues of climate change, human rights, safety, health & wellbeing and sourcing & circularity.

Due diligence

In line with the new requirement of the Swiss Code of Obligations to undertake due diligence into the reasonable suspicion of child labor within medmix and the supply chain, as well as that of the importation and use of conflict minerals, medmix established internal investigative and assessment processes, and performed thorough reviews into these topics.

No suspicious cases were identified.

Presentation of measures adopted

The main milestones established in line with the medmix sustainability strategy are being satisfactorily met:

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Further details on these milestones are presented in the following sections.

Presentation of key activities

To achieve these milestones and progress towards the established goals, the following key activities were undertaken during 2023 and their effectiveness determined:

Material Issues

 

Pillars

 

Key activities

 

Performance

Human rights

 

• Child & forced labor • Modern slavery & human trafficking

 

• Due diligence performed for medmix and the supply chain • Human rights risks integrated into risk management • Signed the UK Modern Slavery Act statement

 

• Zero suspicious cases (child & forced labor, modern slavery & human trafficking) identified within medmix or within the supply chain

Safety, health & wellbeing

 

• Enable learning & employee engagement

 

• Launch of Learning Hour sessions • Launch of virtual learning platform

 

• 1'500 employees invited to join Learning Hour sessions • 100 employees onboarded to virtual learning platform

 

• Promote a safe and inclusive workplace

 

• Signatory to the UN Women’s Empowerment Principles • ISO 45001 certification of manufacturing sites • Environment, health & safety walks and observations in all manufacturing sites

 

• 33% of women in management, an increase from 29% in 2022 • 46% of women in the workforce, consistent with 2022 • One new site, Sao Paulo, was certified ISO 45001. The number of certified sites rose to five • 2'281 safety walks and observations were made (+14% more than target), and while regrettably there was an increase in the lost time injury frequency rate (+9%), the severity of injuries (-23%) and number of lost working days (-3%) decreased

 

• Support local communities

 

• Development of social initiatives in the group’s main markets • Volunteering of employees in local initiatives with social impact

 

• Corporate support to the International Committee of the Red Cross with medmix matching employee contributions • 34 site-led projects, benefiting flood relief, homeless and underprivileged persons, diversity & inclusion projects, youth and other local and worthy causes

Climate change

 

• Reduce global CO 2e footprint

 

• Increase use of ISCC+ and post-consumer recycled materials • CDP Climate Change Assessment • ISO 14001 certification • ISO 50001 certification • Identification and reduction of refrigerant leakage • Machinery and lighting upgrades to increase energy efficiency • Sourcing of low-carbon electricity for all sites by 2025

 

• medmix Scope 1, Scope 2 and partial Scope 3 (fuel and energy related activities + business travel) reduced (-69%) vs. the baseline year (2019), although there was an increase (+2%) in 2023 vs. 2022 due to business travel • medmix achieved a "B" rating for CDP Climate Change Assessment 2023 performance, an improvement from "C" in 2022, recognizing the coordinated actions being taken on climate issues • Two new sites, Dnesice and Sao Paulo were certified ISO 14001. The number of certified sites rose to six • Two new sites, Salem and Sao Paulo, were supplied with low-carbon electricity. The number of sites sourcing low-carbon electrify rose to 13 • medmix energy efficiency improved 10% vs. 2022, normalized with company revenue

 

• Water stewardship

 

• Equipment upgrades to increase water efficiency • WASH assessment of manufacturing sites

 

• All relevant sites were assessed, achieving medmix commitment. The average WASH result was 99% • medmix water withdrawal efficiency improved 22% vs. 2022, normalized with company revenue

Sourcing & circularity

 

• Increase sales of sustainable 3 products

 

• Use of post-consumer recycled and bio-based resins • Improved competency and capability in life cycle assessment

 

• 20 sustainable 1 products launched during 2023, an increase from 5 during the previous year • Within Beauty, 12% of GEKA GmbH Sales met the definition, vs. 11% in 2022 • Life Cycle Assessment and Communication Directive, standardizing climate change internal screenings for product design and communication

Compliance & integrity

 

• Combatting corruption

 

• Launch of eLearning on our Business Code of Conduct, providing training on human rights and how to identify and report human rights abuses • Implementation of an independent tool to enable our employees to report human rights and corruption abuses, followed by an investigation process

 

• 1'500 employees were invited to participate in the eLearning • Following investigations, 10 whistle blower messages were substantiated and actions defined

Product safety

 

• Ensure quality of products

 

• Implement a certified Quality Management System for each medmix legal entity • For products where medmix acts as legal manufacturer, obtain approval for the applicable processes/products from the designated agencies and authorities

 

• Each legal entity certified (ISO 9001 for INDUSTRY & CONSUMER and ISO 13845 for HEALTHCARE) • All relevant certifications, approvals and declarations obtained to act as legal manufacturer

1) Minimum 30% reduction in CO 2e cradle-to-gate compared to standard product

Description of risks

At medmix, risks are assessed regularly as part of the company’s integrated risk management process. The procedure to understand and manage risk is based on a landscape framed by medmix’ objectives and operating environment. medmix Enterprise Risk Management (ERM) involves viewing risk holistically across the organization. Both insurable and non-insurable risks are identified, with the objective to eliminate, mitigate or transfer such risk or prepare to accept them. The medmix ERM embodies the organizational culture of prudent risk-taking and is the process of identifying, assessing and responding to risks, and communicating the outcomes of these analyses in a timely manner. The Executive Committee encourages a strong organizational culture and awareness of risk to ensure that the organization can overcome the factors that inhibit effective risk management.

The following risks and management activities are associated with the medmix identified material issues:

Risk

 

Rationale

 

Management Activities

Climate change

 

 

 

Mitigate

Factory disrupted or unable to operate. Leads to economic impact, contractual risk and reputation risk

 

1. Unable to operate site (due to climate change) 2. Lead time and capex of relocation, capacity constraints 3. Delay in equipment commissioning 4. Duplicates reduce profitability

 

1. Global manufacturing footprint (limit single site risk) 2. Deploy BCP and crisis management system 3. Risk management guidelines 4. Obtain business risk insurance 5. Monitor climate change impact, pandemic and policy decisions

Sourcing & circularity

 

 

 

Anticipate

Unable to source (energy, raw materials, transportation or equipment) on time and in the required quantity

 

Inability to source and ship, delays and inflated growth and sales plans

 

1. Global procurement (avoid single sources) 2. Deploy regional inventory and logistic models to mitigate global products availability concerns 3. Global monitoring of supply chain risks

Product safety

 

 

 

Reduce

medmix portfolio becoming partly unfit due to changes in regulations for products

 

Enaction of laws restricting the use of disposable products; new legislation from taxes to bans

 

1. Monitor regulations and trends 2. Assess customers' evolving demand and the fitness of the portfolio 3. Assess alternatives in product R&D

Compliance & integrity

 

 

 

Reduce

Non-compliant or unethical behavior leading to contract breach, reputational damage, fines and liability

 

Enaction of laws restricting the use of disposable products; new legislation from taxes to bans

 

1. Active fostering of high ethical standards by tone from the top and middle management 2. Monitoring and assessment of potential exposure 3. Wide roll out of Code of Business Conduct and supporting rules (e.g., anticorruption, antitrust, trade control) 4. Third-party due diligence process including human rights and environmental risks 5. Compliance training (incl. e-learning) and audits 6. Speak-up culture, compliance hotline and sanction checks

Safety, health & wellbeing

 

 

 

Anticipate

Potential danger to the well-being of employees in the workplace. It can be caused by a range of factors such as physical hazards, ergonomic hazards, psychosocial hazards, biological hazards and environmental hazards

 

Industrial accident: accident or oil spill can result in loss of life, environmental damage, regulatory fines, damage to reputation and loss of operating license

 

1. Implement measures that avoid the occurrence of impacts and thus avoid harm or even produce positive outcomes. This can include measures such as providing personal protective equipment (PPE) 2. Conduct regular safety inspections and process assessments 3. Provide training to employees on safe work practices

Human rights

 

 

 

Anticipate

Potential danger to the well-being of children who are subjected to work that is likely to harm their health, safety or morals

 

Damage to reputation and legal non-compliance from unidentified reasonable suspicion of child labor in our supply chain

 

1. medmix Business Code of Conduct and the respective training commit in respecting human rights, and a zero-tolerance policy towards human rights abuses 2. Continuous risk assessment in our supply chain and HR 3. Training on human rights and how to identify and report human rights abuses 4. Ensure monitoring and reporting via a compliance hotline and an investigation process 5. Require suppliers to sign medmix Business Code of Conduct, aligning with the Global Compact principles

Main performance indicators

medmix defines and determines its main performance indicators with reference to the Global Reporting Initiative (GRI) Consolidated Set of Standards 2021.

New acquisitions are integrated into the medmix performance indicator reporting at the start of the subsequent financial year.

Combatting corruption

Indicator

 

2023

 

2022

Number of substantiated whistle-blower messages

 

10

 

7

Whistle-blower substantiated messages by category

 

Reference

 

Messages substantiated 2023

Assets

 

 

 

2

Business-related

 

 

 

4

Employee-related

 

 

 

4

Environmental

 

 

 

0

Human rights

 

GRI 408, 409

 

0

Corruption

 

 

 

0

People

 

 

Indicator

 

Reference

 

2023

 

2022

Management system

 

Number of manufacturing sites certified ISO 45001

 

GRI 403-1

 

5

 

4

Human rights

 

Number of suspected cases of child, forced or compulsory labor

 

GRI 408, 409

 

0

 

0

Promote a safe and inclusive workplace

 

Number of employee work-related fatalities

 

GRI 403-9

 

0

 

0

 

Employee recordable injury rate 2

 

GRI 403-9

 

4.1

 

3.6

 

Employee lost time injury rate 2

 

GRI 403-9

 

3.2

 

2.4

 

Employee injury severity rate 3

 

 

 

46.2

 

50.2

 

Environment, health, and safety observations

 

 

 

933

 

1’036

 

Safety walks

 

 

 

1’348

 

1’610

 

% women in management 4

 

GRI 405-1

 

33%

 

29%

 

% women in workforce

 

GRI 405-1

 

46%

 

46%

 

% workforce over 50 years old

 

GRI 405-1

 

39%

 

29%

Enable learning and employee engagement

 

Number of employees invited to Learning Hour sessions

 

 

 

1’500

 

NA

 

Number of employees onboarded to virtual learning platform

 

 

 

100

 

NA

Support local communities

 

Number of community engagement projects

 

GRI 413-1

 

34

 

32

2) Per million hours worked, employees only

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

4) Management Level 5 and above, excluding Board of Directors

Planet

 

 

Indicator

 

Reference

 

2023

 

2022

Management system

 

Number of manufacturing sites certified ISO 14001

 

 

 

6

 

4

 

Number of manufacturing sites certified ISO 50001

 

 

 

1

 

1

Climate change

 

medmix-own emissions (t CO 2e )

 

GRI 305

 

9’292

 

9’149

 

medmix Scope 1 emissions (t CO 2e )

 

GRI 305-1

 

5’235

 

5’408

 

medmix Scope 2 emissions (t CO 2e )

 

GRI 305-2

 

1’373

 

1’656

 

medmix partial Scope 3 emissions (t CO 2e ) 5

 

GRI 305-3

 

2’683

 

2’085

 

Number of sites purchasing low-carbon electricity

 

 

 

13

 

11

 

Energy consumption (GJ)

 

GRI 302-1

 

221’909

 

242’474

 

Energy purchased that is renewable or low-carbon electricity (GJ)

 

GRI 302-1

 

86’373

 

100’601

 

Energy produced that is renewable electricity (GJ)

 

GRI 302-1

 

472

 

403

 

Total grid electricity consumed (GJ)

 

GRI 302-1

 

125’802

 

143’461

Water stewardship

 

Number of manufacturing sites assessed WASH

 

WRC-WA May 2021

 

11

 

NA

 

Water withdrawal (m 3 )

 

GRI 303-3

 

570’759

 

713’703

 

Water consumption (m 3 )

 

GRI 303-5

 

19’003

 

23’079

 

Water discharge (m 3 )

 

GRI 303-4

 

551’003

 

690’625

Waste for disposal

 

Total waste (t)

 

GRI 306-3

 

2’437

 

2’502

 

Waste to landfill (t)

 

GRI 306-5

 

115

 

88

5) Fuel and energy-related activities + business travel

Profit

 

 

Indicator

 

Reference

 

2023

 

2022

Increase sales of sustainable products

 

Number of products launched meeting definition of “sustainable 6

 

 

 

20

 

5

Gold standard recognition

 

Number of manufacturing sites rated at least Gold by EcoVadis

 

 

 

4

 

4

 

medmix CDP Climate Change rating

 

 

 

B

 

C

6) Minimum of 30% reduction in CO 2e cradle-to-gate compared to standard product