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ESG

Environmental, Social and Governance

ESG Index, A-Z

 

Arjo is committed to a high level of transparency in Environmental, Social, and Governance (ESG) disclosure. In this index, we present a range of ESG topics of importance to our business and our stakeholders. You will also find Arjo’s policies and statements, including links to relevant documents. 

Arjo does not conduct any animal testing and will only accept animal testing if;

  • required in order to comply with applicable laws and regulations, and
  • there is no biocompatibility data available on the material for the evaluation of device safety, and
  • no alternative non-animal studies are possible for the evaluation of the device safety.

 

Arjo is committed to the “Three R’s” principle through which the use of animals is Replaced, Reduced and Refined.

  • Replace the use of animals with alternative techniques.
  • Reduce the number of animals used to obtain the same level of information.
  • Refine the testing technique to minimise the potential distress to animals.

 

Arjo expects the highest standards of business ethics from its own operations as well as from its global network of suppliers and partners – including a zero tolerance for all forms of corruption, fraud and bribery. 

We are committed to ensuring that all employees receive appropriate anti-corruption training. In addition to mandatory training requirements, we offer targeted training and face-to-face training to employees having frequent interactions with business partners.

Our high demands on ourselves also apply to Arjo’s suppliers and business partners around the world.

Arjo External Policy document

Arjo Code of Conduct

Arjo Business Partner Code of Conduct

Arjo believes in fair trade and participates only in business activities where we can compete honestly and fairly based on the quality and price of our offering.

We ensure that all our business practices comply with anti-trust/competition laws in the countries we operate in. Arjo does not accept anti-competitor practices such as price fixing, bid rigging or dividing markets.

Arjo External Policy document

Arjo Code of Conduct

Arjo Business Partner Code of Conduct

Arjo is firmly committed to the highest standards of responsible and ethical business conduct. Our success must always be the outcome of our products and our work – and never the result of offering improper benefits or engaging in other unethical behavior. We only participate in business activities where we compete honestly and fairly based on the quality and price of our solutions.

Arjo External Policy document

Arjo is committed to reducing greenhouse gas emissions from the company’s own operations (scope 1 & 2) by 50% and reducing emissions from the value chain (scope 3) by 25% by 2030, with 2021 as the base year.

In 2023, Arjo’s carbon emissions were reduced by 11 percent and the carbon intensity in relation to net sales (tons CO2e/SEK M) reduced by 33% from 3.0 to 2.0. The main factors were lower emissions from the fleet of vehicles and the transition to renewable energy.

We have multiple ongoing initiatives in both our supply chain and product development to increase circular qualities and waste reduction. To reduce carbon emissions from Arjo’s production facilities, we are working on optimizing ventilation and cooling systems. Since 2022, all our production facilities use renewable electricity.

Arjo’s climate targets are scientifically validated and approved by the Science Based Targets initiative.

Target dashboard - Science Based Targets Initiative  

Arjo Annual and Sustainability Report 2022 

Arjo Sustainable offer

Arjo conducts clinical trials in accordance with the highest ethical, professional and quality standards. We follow established principles and standards such as the ISO 14155:2020, EU MDR 2017/745 and the World Medical Association Declaration of Helsinki on Ethical Principles for Medical Research. We also adhere to the principles of good clinical practice (ICH/GCP). 

To secure compliance with these principles and standards, Arjo has developed internal Standard Operating Procedures (SOP). Our Medical Affairs department continuously develop our processes and procedures to ensure the highest ethical standards for our trials. 

The Arjo Code of Conduct is, together with our Guiding Principles, the foundation of how we do business and how we act. A number of Arjo policies and directives support the code and are supplemented with local versions where necessary.

Our code of conduct is based on the following international principles:

  • The Ten Principles of the United Nations Global Compact  
  • OECD Guidelines for Multinational Companies
  • ILO Declaration on Fundamental Principles and Rights at Work 
  • UN Guiding Principles on Business and Human Rights
  • United Nations Universal Declaration of Human Rights 

Code of Conduct

Arjo External Policy document

Arjo Guiding Principles

Arjo is committed to working towards avoiding the use of minerals from conflict-affected and high risk-areas as defined in Annex 2 of the OECD Due Diligence Guidance.

Arjo does not purchase any minerals directly from miners, smelters and refiners. Therefore, we require that our suppliers will assist in our efforts by committing to Arjo’s Code of Conduct for Business partners. We rely on our suppliers to provide information about the origins of any Conflict Minerals in our products, and we expect them to promote these standards to their respective suppliers.

If Conflict Minerals are found being used in our products, we will conduct due diligence activities on our supply chain to reasonably ensure that if the minerals originate from within the conflict area they are from conflict-free sources.

Arjo is a listed company on Nasdaq OMX Stockholm and thereby governed based on Swedish legislation, Arjo’s Articles of Association, the Swedish Code of Corporate Governance and Nasdaq Stockholm’s Rule Book for Issuers as well as other relevant regulations and recommendations.

Arjo has clear principles and practices for the governance of all legal entities in the Group. Corporate governance is aimed at ensuring the continued strong performance of the Group by securing that the Group fulfils its obligations to shareholders, customers, employees, suppliers, creditors and society. The Group’s corporate governance and internal regulations are consistently geared toward business objectives and strategies. The Group’s risks are well-analyzed and risk management is integrated in the operational activities and the work of the Board.

Arjo Annual and Sustainability Report 2022

Arjo Corporate Governance Report

Corporate Governance on the Arjo web site

Arjo is committed to respecting the integrity of all individuals. We take the obligation to process Personal Data in an orderly and secure manner seriously.

We ensure that all collection, processing and handling of confidential personal information is done in compliance with applicable privacy laws and the highest ethical standard. Personal data shall be maintained securely and may only be disclosed to individuals with proper authorization to receive such data, unless a disclosure is required by law.

Arjo External Policy document

Arjo Code of Conduct

Diversity, Equity and Inclusion are of the highest importance to Arjo. We believe that in order to solve more complex challenges, we need to continuously bring more creative and diverse ideas to the discussion. When employees of different gender, age, cultural heritage, sexual orientation, functional disability and backgrounds work together, the workplace is more productive and more innovative decisions are made.

To support a diverse and inclusive workplace, we have developed eleven commitments. They include actions, measurement and follow-up procedures that maximize the talent, potential and contribution of all employees by providing equal opportunity for all. Our ambition of a winning and sustainable Arjo will be achieved through a culture and mindset that values the uniqueness of all employees.

Arjo Annual & Sustainability Report 2022

Arjo External Policy document

Arjo an attractive employer

 

 

At Arjo we are committed to minimizing our climate and environmental impact. We set long-term climate and environmental ambitions and targets and we are determined to improve our year on year sustainability performance in our own operations and throughout the value chain. 

Our Environmental and Climate Policy defines the common principles for managing and developing our operations, products and services to minimize our environmental and climate footprint. 

Arjo External Policy document

 

At Arjo, we recognize that employee development is crucial for reaching our business objectives and attracting and retaining talent. Our Performance and Development approach focuses on continuous development conversations and real time two-way feedback. We continuously strive for Individual developmental growth plans that encompass stretch goals and objectives to enable the employee to meet identified competency gaps and demonstrate the behaviours that align to our Arjo Guiding principles. With our assessment tools we increase self-awareness, support high-performing teams and help employees stay in tune with what motivates them. Driving teams and individuals to ultimately to reach their full potential.

Our inclusive Talent and Mentorship Programs provides our talents with exposure to the wider business, networking outside of their specialism, knowledge sharing and diversity in decision making. The programs offer teamwork on strategic business projects under the guidance and encouragement of the Arjo Management Team. Our global Academy function offers specialized product, clinical and customer-related training to continually keep our employees up to speed with our Arjo offering.  We measure the success of our employee development initiatives using our annual People Survey feedback.

Arjo External Policy document

We are committed to providing fair working conditions for all employees and we are dedicated to complying with local legal requirements and collective bargaining agreements. This includes the right to a written contract or document of employment in a language that the employee can easily understand, specifying their terms of employment.

Each employee shall be rewarded in a correct and fair manner in accordance with their contribution to the company and their individual performance. Arjo focuses on eliminating any improper wage differences. All employees shall be offered opportunities for appropriate training to develop relevant skills and to encourage growth and career progress within the company.

Arjo External Policy document

 

As of 2022, 10 percent of the Arjo Management Team’s variable remuneration is based on two sustainability targets – to reduce the Group’s carbon emissions and to facilitate for the organization to set science-based targets in line with the Paris Climate Agreement. Arjo has also introduced carbon reduction goals for all Level 2 managers to further implement sustainability targets in short term incentive schemes throughout the organization.

Arjo Annual and Sustainability Report 2022

Arjo Remuneration

Arjo has created policies and procedures to secure the highest ethical standard and compliance with laws and regulations related to the promotion, marketing, and sales of our products and solutions.

Any information we present to the public goes through multiple levels of fact and compliance checks. All interactions with healthcare professionals and other external stakeholders follow strict guidelines. Compliance and sales staff are trained regularly to stay current with company policies and government rules and regulations.

Arjo respects internationally recognized human rights as stated in the UN Guiding Principles on Business and Human Rights (UNGP) and the UN Global Compact. We require our suppliers to adhere to the same principles and to comply with our Business Partner Code of Conduct. We continuously develop our human rights initiatives and we are determined to perform human and labor rights due diligence for our supplier base.

We are committed to respecting and ensuring labor rights in line with the International Labour Organization’s (ILO) core conventions and we recognize the freedom of association and the right to collective bargaining. We do not accept disciplinary or discriminatory actions against employees who choose lawfully to organize or join a trade union or a workers association.

Arjo has zero tolerance for forced labor, child labor or other forms of involuntary labor including modern slavery. We comply with applicable laws and international standards on forced labor. 

Arjo is dependent on IT and its surrounding infrastructure and thus we are exposed to the risk of cyber-attacks and other types of data security breaches.

To mitigate potential cyber security threats, we actively conduct risk assessments and testing of our IT infrastructure and handling of data. We have a governance structure in place to manage cyber security. This includes IT General Controls (ITGC) covering operational measures and procedures to monitor and respond to data breaches and cyberattacks.

On a yearly basis we conduct internal and external security audits, vulnerability assessments and penetration tests to constantly analyze risks, and to adapt and secure our systems, processes and data. All employees are trained on cyber security and data compliance and protection, and training for new employees is part of the onboarding process.

We are committed to respecting the confidentiality, integrity and availability of personal data and to safeguarding the data through policy and technical controls. Our Data Protection Compliance Policy outlines how personal data must be handled to ensure compliance with any local data compliance regulations such as GDPR and HIPAA. Arjo obtained the ISAE 3402 certification and Cyber Essentials in 2022/2023.

Arjo Annual and Sustainability Report 2022

Arjo’s global competitive position depends on our ability to develop existing and new solutions, products and services. We take great pride in our innovations and we protect them accordingly.

We use Arjo’s intellectual property rights responsibly and adamantly to protect our competitive position. At the same time we respect the intellectual property rights of others.

Arjo believes that intellectual property protection is not a barrier to accessible and affordable healthcare. Our intellectual property rights are enabling access to our medical technologies and solutions across the globe. 

Arjo External Policy document

Intellectual property protection on the Arjo website

Occupational health and safety are at the core of Arjo and central to our operations, products and services. We have implemented a structured safety management system to achieve a consistently high standard of safety performance as well as to ensure continuous improvements. We have a clearly defined framework and behaviors for managing physical and psychological safety in the work environment, as well as employees’ total well-being, with a Zero Accident Vision.

Arjo is dedicated to making a positive and sustainable contribution to the communities in places where we do business. Employees are encouraged to participate in activities that benefit their communities, but Arjo does not support political parties or make political donations.

Charitable contributions are usually made to high-quality research and development projects in medical technology fields relating to our focus areas. Investments in education are also in line with our ambitions to be a sustainable and responsible company.

Arjo External Policy document

Arjo’s product development process adheres to the principles of EcoDesign. The method takes into consideration the environmental impact throughout a product’s life cycle by ensuring resource-efficient use of materials and enhanced recycling quality.

EcoDesign makes it easy to maintain and update products in order to maximize the life cycle, and it helps customers reduce their consumption of energy, water and other resources.

Arjo Annual and Sustainability Report 2023

Arjo is committed to delivering well-designed and safe products, with a high degree of clinical and ergonomic efficiency. We continuously work to improve internal processes and procedures to ensure compliance and retain a high class quality management system. Our quality management system is certified in accordance with internationally recognized standards.

We conduct internal audits at all production units to identify any areas of improvement and to ensure that we comply with applicable requirements and regulations.

Arjo has six quality system certificates issued by British Standards Institution (BSI):

  • ISO 9001
  • ISO 13485
  • EU Medical Device Directive (MDD)
  • EU Medical Device Regulations (MDR)
  • Medical Device Single Audit Program (MDSAP) covering medical devices in the US, Canada, Australia, Japan and Brazil
  • UK Conformity Assessed (UKCA) covering medical device regulations in the UK

Arjo Annual and Sustainability Report 2023

Arjo continuously develops its sustainability reporting to be in line with the latest practice.  During 2024, we are transitioning our sustainability reporting to meet the requirements in the EU Corporate Sustainability Reporting Directive (CSRD) and the associated European Sustainability Reporting Standard. Arjo has conducted a double materiality assessment in accordance with CSRD. This will pave the way for the CSRD/ESRS reporting.

Greenhouse Gas Protocol (GHG)

Arjo reports carbon emissions according to the GHG protocol categories.

  • Scope 1: Direct emissions such as from company-owned vehicles and oil furnaces.
  • Scope 2: Indirect emissions from grid-connected energy consumption from purchased electricity, district heating, cooling and steam.
  • Scope 3: The following categories are reported:
    • 9. Downstream Transportation and Distribution
    • 6. Business travel

During 2023 emissions from all 15 categories in Scope 3 will be identified and consequently reported in the 2023 Annual and Sustainability.

Arjo Annual and Sustainability Report 2023

The Science Based Target initiative has validated and approved Arjo’s near-term 2030 climate targets. This confirms that the company’s targets are in line with the latest climate science and the Paris Agreement.

Arjo’s targets is to reduce greenhouse gas (GHG) emissions from the company’s own operations (scope 1 and 2) by 50% by 2030. For the value chain (scope 3), the target is to reduce emissions by 25% by 2030. 2021 is the base year for both targets.

Arjo Annual and Sustainability Report 2023

Arjo supports the UN Sustainable Development Goals. Based on Arjo’s materiality analysis, we have identified seven SDGs that are relevant to the impact of Arjo’s business operations.

Goal 3 Good health and well-being

Goal 4 Quality education

Goal 5 Decent work conditions and economic growth

Goal 8 Gender equality

Goal 12 Responsible consumption and production

Goal 13 Climate action

Goal 16 Peaceful and inclusive societies

 

Read more about how Arjo’s business relates to these SDGs in the Arjo Annual and Sustainability Report 2022, page 122.

Arjo Annual and Sustainability Report 2023

Arjo’s sustainability framework is a central element of Arjo’s strategy and a natural part of our core business. The framework is based on our materiality analysis, stakeholder dialogue and acknowledged global guidelines and principles. The framework includes three focus areas:

  • A sustainable offering
  • A responsible company
  • An attractive employer

Arjo Annual and Sustainability Report 2023

Arjo Sustainability web section 

 

Arjo has a clear governance structure for its sustainability agenda. The governance model is based on relevant directives and policies, and ensures systematic implementation and follow up of approved activities.

Arjo’s CEO and Management Team has the overall responsibility for the sustainability agenda and sustainability initiatives are regularly followed up at management team meetings.  

Arjo has established a sustainability forum bringing together members from Arjo Management Team and internal stakeholders with the ambition of reinforc­ing the development, implementation and gov­ernance of the sustainability agenda.

Arjo’s Board of Directors is responsible for determining the re­quired guidelines and policies and monitors sustainability efforts through regular status reports, target realization and plans going forward. The Board of Directors also conducts an assessment of the sustainability agenda twice a year and is responsible for the sustainability report.

Arjo Annual and Sustainability Report 2023

Arjo Sustainability web section

Assessing, managing and mitigating risks is crucial for Arjo’s strategic planning and internal control process. We have an established process for identifying, analyzing and managing sustainability related risks and their potential impact on our operations.

Arjo maps sustainability related risks in our operations, our supply chain, and in the distribution and user phase. To determine the relevance and impact of sustainability topics, we conduct material assessments. We have an established governance structure that involves both the Management Team and the Board, and efforts to continually improve our sustainability agenda and manage related risks.

Arjo Annual and Sustainability Report 2023

The growth and success of Arjo depend on the trust of our stakeholders including customers, employees, business partners, investors and owners, as well as authorities and the wider society.

We have continuous dialogues with our stakeholders to get insights, prioritize business initiatives and to analyze the relevance of different sustainability areas. We conduct materiality assessments and stakeholder dialogues according to the GRI standard.

Arjo Annual and Sustainability Report 2023

Arjo has operations in several countries and we are committed to our social and legal obligation to pay tax based on the economic outcome of our operations.

This is of vital importance not the least since the lion share of Arjo’s customers are either directly or indirectly financed by the public sector, relying on its fiscal income.

Arjo strives to minimize tax risks and ensure effective and accurate tax management. We comply with local tax laws as required by country legislation and we do not use legal entities for tax planning. We report and disclose our tax positions in accordance with relevant regulations.

Arjo is dedicated to a proactive and transparent dialogue with stakeholders such as tax authorities, and we disclose all facts to all relevant tax administrations.

We have a well-established governance structure for tax-related matters and a Tax Control Framework that clearly defines roles and responsibilities, governance principles and control functions.

Arjo supports and adheres to the ten principles that apply to human rights, labor, the environment and anti-corruption.

Arjo has several programs within the framework of the UN Global Compact, and works continuously on development, training and follow up of business ethics, diversity, health and safety and the environment in the value chain.

Arjo Communication on Progress

Arjo Annual and Sustainability Report 2022

Arjo supports a speak-up culture and we urge employees and external stakeholders to come forward and communicate any observed or suspected non-compliance issues. Such reports will be taken seriously and properly investigated. 

In addition to our internal reporting channels, we have implemented a Whistleblowing System and Hotline. They are provided by an external supplier that offers employees and external parties the possibility to file reports of misconduct by persons within Arjo in a secure and anonymous way. 

Arjo does not tolerate any attempt to penalize or discriminate against an employee who has raised a concern, regardless of which reporting channel is being used. The same principle applies if the employee is a witness in an investigation. Any such retaliation may be subject to disciplinary action. 

Arjo’s Whistleblowing Service