Sustainability report 2019 - Report based on facts from 2018 - Mölnlycke
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Sustainability report 2019 Report based on facts from 2018
CONTENTS
Our sustainability approach 2
CEO statement 4
About the company 8
Responsibility for our products 16
Our people 19
Minimising environmental impact 24
Health and safety 32
Corporate Social Responsibility 35
Code of Conduct 37
Anti-bribery and corruption 41
Working with suppliers 42
Managing sustainability risks 43
Our sales offces 45
2Sustainability report 2018
Our sustainability approach
In 2015, countries within the the UN adopted These priorities have also been informed by
a set of 17 sustainable development goals materiality assessment reviews, the policy of
to be achieved by 2030; national and supra- our owners, Investor AB, requirements from
national regulations are also tackling these. EU directives, legal reporting and public tender
At the same time, companies and other requirements.
organisations, including our customers, are
driving sustainability through procurement Report aim, scope and structure
practices, by ensuring that the companies The report covers Mölnlycke’s main operations
they use take responsibility for their around the world and our market sites
people, suppliers, the environment and the between January and December 2018. Our
communities where they operate. previous Sustainability Report covered the
2017 calendar year, and our report is issued
In today’s world, it’s essential for Mölnlycke annually.
to have a sustainable long-term vision – and
to constantly monitor and refine our actions We take inspiration from the Global Reporting
and strategies to meet the needs of all our Index (GRI) guidelines to structure our report.
stakeholders. The content for 2018 has been gathered from
different internal specialists and approved by
As a healthcare company and a significant our Executive Management Team. We have
employer and user of suppliers, we have also carried out analyses of our sustainability
chosen to focus on UN sustainable develop- impact, preventative work, and the areas in
ment goals ‘#3: ‘Good health and wellbeing which we need to improve.
for all’ and #8: ‘Decent work and economic
growth’ as we believe that this is where we can We have assurance processes to ensure our
create the most value. sustainability reporting is transparent and
reliable.
Our Executive Management Team have
further focused on six strategic priorities, We have set out to be as transparent as we can
after assessing how we can create most value in disclosing information. This report intends
from a sustainability perspective and after to give readers a picture of our sustainability
reviewing, together with internal specialists, approach, performance and risk assessments.
where the company and our solutions can have While we are ahead in some areas, we recog-
the greatest impact: nise we have work to do in others.
• Product quality We will strive to review the scope of our
• Minimising environment impact reporting over time to continuously improve
• Anti-bribery and corruption our performance – while leveraging the value
• Sustainable supply chains and supply chain creation opportunities that a sustainable
resilience perspective gives.
• Health and safety
• People diversity and equality. We encourage feedback from our stakeholders
to help us improve our sustainability work as
well as to improve the report. If you have any
comments or feedback, please email us at:
corporate.communication@molnlycke.com
3CEO statement
Responsibility: towards our
customers, our environment
and our people
We live in a time of global transformation. As people live longer and enjoy
higher standards of living, they are demanding more from their healthcare –
increasing the pressure on already burdened systems.
patient suffering and is expected to have a
Our purpose statement positive impact on health economics by freeing
Mölnlycke is a world-leading medical up staff time.
solutions company. Our purpose is to advance
performance in healthcare across the world, Additionally, we are now offering our
and we aspire to equip everybody in healthcare customers the haemoglobin spray Granulox®,
with solutions to achieve the best outcomes. which by accelerating healing reduces patient
suffering. It is also estimated to reduce the cost
of treating diabetic foot ulcers by up to 60%.
As a world-leading medical solutions company,
we have a key responsibility to help providers There are examples within our surgical
worldwide meet this demand in a way that’s portfolio too. In particular, Mölnlycke®
sustainable over the long term. Through Procedure Trays are recognised for improving
advances in wound management and surgical health economic outcomes by reducing
solutions and strong clinical evidence to surgery preparation time by 40% and thereby
support decision-making, we aim to empower increasing the number of surgeries that can
healthcare professionals to deliver better care take place.
for more people. Our goal is to increase the
overall health economic value of our solutions In a small way, by improving health and health
for society while reducing patient suffering. economic outcomes, we believe our work
contributes to the UN’s global sustainability
Reducing unnecessary cost and goal #3: ‘Good health and wellbeing for all’.
suffering
Mölnlycke’s investment in solutions to treat Implementing ethical standards
chronic wounds demonstrates examples Sustainability is central to our whole business
of this. Today foot ulcers and other chronic approach. We aim to be a long-term partner
wounds have a higher mortality rate than both in society. That means acting in a socially
breast and prostate cancer. responsible and ethical way, not just with our
customers and patients, but also towards the
Our new wound care product Mepilex® Border environment, our people and the communities
Flex, which we launched in 10 markets we serve.
worldwide during 2018, promotes undisturbed
healing of chronic wounds. This minimises
5CEO statement
We take product responsibility very seriously. constantly evaluate our procedures, looking for
We're passionate about developing strong new and better ways to do things. We also seek
clinical evidence to back up our solutions – to become more rigorous about measuring and
empowering healthcare professionals by following up opportunities for improvement
supporting their decision-making. using the most appropriate tools.
Our standards are underpinned by rigorous We are investing to improve our production
compliance with the laws and regulations and distribution facilities, create efficiencies
applicable to the regions where our products and ensure quality for customers and patients.
are sold, including the FDA Quality System In 2018, we introduced a new transportation
Regulation, and the EU 93/42/EEC and 2007/47 management system, which has optimised our
EC Medical Devices Directive, with transition supply chain and flows worldwide.
in 2020 to the EU Medical Device Regulation.
We also meet key industry standards such as Efficiency is key to our business. We strive
the quality management systems ISO 9001, to become more efficient and less wasteful
the Medical Device Single Audit Program every year. This also favours our customers,
(MDSAP), ISO14001 for environmental as the increasing demand on healthcare
management, ISO13485 for medical devices, organisations means they operate in a cost-
and Occupational Health and Safety Standard constrained environment.
(OHSAS) 18001 for health and safety.
Reducing our environmental impact
Our Code of Conduct sets out the high As a growing business, we are aware that,
standards we expect from ourselves and our to be sustainable, we need to minimise the
suppliers. We carry out regular audits of our impact of our activities on the environment.
performance to ensure we live up to the spirit We constantly look for ways to reduce our
and letter of the Code and follow up if we’ve consumption of materials and resources,
fallen short in any area. avoiding waste wherever possible, as well
as driving down CO2 emissions from our
We have an established whistleblowing hotline transportation network.
that our employees can use if they spot bad
practice in any of our operations. And if we find We set targets for improvement and, where we
incidents, or if incidents are reported, we follow miss them, we investigate the reasons, so that
up with appropriate actions. we can implement corrective actions.
Continuously improving what we do An example of our progress in this area is that
As a responsible company, our goal is to in 2018, we succeeded in increasing the part
continuously improve so that we can create of our waste that is recycled or reused from 39
long-term value for all our stakeholders. We percent to 43 percent. It is all small step in the
6Sustainability report 2018
right direction on our journey to do more with to these causes and have provided volunteers
less as a responsible company. for Operation Smile’s surgical missions in
developing countries over many years.
A responsible employer
As an employer, we aim to provide the best I truly believe that sustainability is a core
working environment, with safe and fair part of our business approach and key to our
working conditions, where we show respect continued success. We are committed to acting
for every individual. Our approach relates to in a socially responsible way that benefits
the UN’s global sustainability goal #8 ‘Decent customers, patients and society over the long
work and economic growth’. We make sure term.
that everyone has the chance to develop their
potential and give them the pay, working
conditions and support they need to improve.
And we have quality procedures to ensure
that suppliers treat their staff well – which is
particularly important in developing countries.
In 2019 and beyond, we will continue to
focus on increasing diversity throughout
the organisation, ensuring that we don’t Richard Twomey
discriminate on the basis of race, nationality,
religion, age, disability, gender, marital status, Chief Executive Officer
sexual orientation, union membership or
political affiliation. We will place a particular
focus on growing the number of female
leaders. Read more in Our people, page 19.
Doing more for our communities
Our company and our people always strive
to do better for the communities we serve.
We have made long-term commitments to
support our charity partners Operation Smile
and DEBRA, which represent some of our
core patient groups. During 2018, our efforts
resulted in a total donation of USD 180,000 to
both charities – from fundraising efforts by
colleagues and matched by donations from the
company. We also donate products and time
7About the company
Mölnlycke is a world-leading medical products and solutions company.
We aspire to equip everybody in healthcare to achieve the best clinical,
patient and economic outcomes.
Our solutions Our business model
Our medical solutions enhance performance in We offer around 20,000 different stock items
healthcare – from the hospital to the home. to our customers around the world. While
we manufacture the large majority of them,
Wound management we buy in raw materials and components.
We advance wound healing with wound care We use more than 550 direct suppliers and
solutions that are backed by clinical evidence, contract manufacturers. In 2018, there were
including dressings with Safetac® and negative over 600,000 deliveries to 15,000 partners
pressure wound therapy systems. We also worldwide.
provide education and expert support.
Commercial
We reduce the risk of pressure ulcers with Our Commercial strategy teams map market
prevention solutions such as prophylactic and customer needs in order to determine
dressings, devices that help healthcare how we can best assist our customers to
professionals turn and reposition patients deliver their objectives, and which markets
and supporting educational and consultancy and product segments to expand. This work is
services. supported by our Research and Development
(R&D) function. Our Commercial strategy
Surgical solutions function is based at our headquarters (HQ) in
We improve safety and efficiency in and around Gothenburg, Sweden.
the operating room with surgical procedure
trays including surgical instruments. We also Within Commercial, our sales and marketing
protect staff and patients from infection with teams are responsible for identifying, targeting
surgical drapes, staff clothing, antiseptics and and engaging with our customers around
surgical gloves, and provide education and the world. Our global sales and marketing
expert support. teams set strategies and are based at our
HQ in Gothenburg. Our sales and marketing
Our customers operations are carried out with regional setups
Our surgical solutions are marketed to in the US, Asia Pacific (APAC) and emerging
hospitals and healthcare providers in the markets in Europe, the Middle East, Latin
acute sector, while our wound management America and Africa. UK, France, Germany/
and pressure ulcer prevention solutions are Austria and Region North are also managed
aimed at both the acute and the community directly. In 2018, there were 38 sales offices
healthcare sectors. In many markets, tenders around the world and our products are
are used to procure our solutions. We also sell available in over 100 countries.
some of our wound management solutions
directly to patients through pharmacies.
8Sustainability report 2018
Our main brands
WOUND MANAGEMENT
Mepilex®. A wide range of dressings for acute and chronic wounds.
Mepitel®. A gentle, effective wound contact layer.
Exufber®. A gelling fbre dressing to manage the challenges
of highly exuding wounds.
Mepilex® Border. Prophylactic dressings for targeted areas
of the body such as the sacrum and heel.
Mölnlycke® Tortoise™ Turning and positioning system. A support
surface making it easier for caregivers to reposition patients and
redistribute pressure.
Mölnlycke® Z-Flo™ Fluidised positioner. Positioners that conform
to the body and remain in place.
Mepilex® Border Flex
SURGICAL SOLUTIONS
BARRIER® staff clothing. A wide range of protective clothing for the
safety and comfort of healthcare professionals and patients.
BARRIER® drapes. A range of drapes specifcally designed for different
types of surgical procedures.
Biogel® surgical gloves. For protection and double-gloving, featuring
a puncture indication system. Also the preferred choice for ft, feel and
comfort.
Mölnlycke® surgical instruments. A wide assortment of single-use
instruments, including trocars, for minimally invasive surgery.
Mölnlycke® Procedure Trays. All the single-use items needed for a specifc
surgical intervention, conveniently assembled in a sterile pack to give
healthcare professionals a truly customised and complete solution.
Hibi® antiseptics. Solutions for preventing infection include Surgical instruments
hand hygiene, disinfectant and pre-surgery whole body wash.
Research and Development Supply Chain Management,
Our R&D team is responsible for developing Manufacturing and Procurement
and upgrading our products and solutions Supply Chain Management is responsible for
in consultation with our manufacturing, the management of supply planning, inventory
procurement, regulatory and commercial planning and replenishment.
teams. We also collaborate with external
partners to strengthen our in-house R&D We have 15 manufacturing sites around
resources. Our R&D function is based at the world: in Belgium, the Czech Republic,
our HQ in Gothenburg. Denmark, Finland, Malaysia, Thailand, the
United Kingdom and the US. We produce some
of the components for our products in-house,
such as the hydrophilic polyurethane foam for
our wound treatment solutions. We also buy
9About the company
in from around 40 contract manufacturing • five in Europe: Waremme, Belgium; Lyon,
suppliers. Our procurement teams support France; South Normanton, UK; Landskrona,
our manufacturing team and are responsible Sweden; and Sosnowiec, Poland
for the identification and selection of suppliers • one in Asia Pacific: Malaysia.
of raw materials, components and services,
contract negotiations and supplier relationship Our five European distribution centres serve
management. our distribution centres in the US as well as
our customers in Westen Europe and Canada,
Operations: Distribution, logistics and customers in the rest of the world and our 14
customer care local warehouses. Our two US distribution
Our distribution and logistics teams are centres serve our US customers and also
responsible for warehousing and distributing house solutions manufactured in the US for
our solutions. We distribute both directly non-US markets.
to customers and to third parties, such as
distributors and logistics partners. We use third-party suppliers to move raw
materials, components and finished solutions,
Our supply chain is complex. It varies by sea, air and road. We strive to keep the
depending on the different products that number of journeys our solutions take
are produced, the customers and countries throughout the supply chain to a minimum.
delivered to, and the kind of healthcare Where possible, we move goods by sea, but
system in the country we are delivering to. as they near their destination, we rely more
Finished goods are usually shipped to our eight heavily on road. Very occasionally, we use air
distribution centres: freight when customers have an urgent need
for our solutions.
• two in the US: Anderson, South Carolina; and
Sparks, Nevada Our customer care team is responsible
for after-sales activities, such as order
OUR BUSINESS MODEL
INPUTS MANUFACTURING LOGISTICS COMMERCIAL CUSTOMER
We buy in raw materials We have 15 manufacturing Finished goods are usually Our sales and marketing Surgical solutions are sold
and components from sites around the world. shipped to our distribution teams are responsible to hospitals and healthcare
more than 550 direct We also buy in from around centres. We use 3rd-party for identifying, targeting, providers in the acute sector.
suppliers and contract 40 contract manufacturing suppliers to move materials and engaging with our Wound management solutions
manufacturers. suppliers. and finished goods, by sea, customers. are sold to both acute and
air, and road. community health sector.
10Sustainability report 2018
management, order processing, reverse INVESTOR'S SUSTAINABILITY MODEL
logistics, post-sales follow-up, complaints
handling and product recall management. INVESTOR'S
They also provide customer analytical support SUSTAINABILITY GUIDELINES
to our sales and marketing teams. Describe our ten basic expectations,
applicable to all our companies
Our sustainability model S
SO
INES PPOR
BU T
Ownership COMPANY SPECIFIC
UN
REPORTING
TE
FOCUS AREAS
CRE A
I
Mölnlycke Health Care AB is a limited liability
TIES
Our sustainability work Long-term, Are included in the value
is included in our Annual
responsible and creation plan for each
company and was acquired by Investor AB Report, on our website
and in the Communication active owner
listed core investment and
vary depending on each
in January 2007. Today, Investor AB owns 99 of progress
company's opportunities
S
RE
(UN Global Compact).
ST
and challenges.
UC
percent of the company, with the remaining CO
D
ER
ISK S A ND
minority share owned by management. CONTINUOUS FOLLOW-UP
Through a sustainability questionnaire,
we annually monitor our sustainability guidelines,
Our sustainability approach
and the company specific focus areas are monitored by
our analysts on an ongoing basis and reported annually
to the Investor Board of Directors. We compile the
As a long-term, responsible and active owner, companies' sustainability work in an internal index,
to evaluate, monitor and develop our
Investor AB sets out sustainability guidelines companies long-term.
for their holdings, which we follow.
These consist of ten expectations to:
• act responsibly and in an ethical manner Our structure, history and
• comply with all applicable laws, regulations performance
and industry standards Core and support functions
• continuously improve social, environmental Our core functions include Commercial,
and economic impact Operations and Research and Development.
• support and invest in innovation These are backed by a wide range of support
• analyse risks, formulate objectives and have functions including Regulatory, Quality
adequate processes to manage and monitor Assurance, Environment, Health and Safety,
sustainability risks Finance, IT, Legal & Compliance, Human
• sign and adhere to the UN Global Compact Resources, Corporate Communications,
and its 10 principles as well as the OECD Corporate Strategy and Business
guidelines for multinational enterprises Development.
• in an appropriate form, transparently report
sustainability objectives, risks and progress Additionally, the company has five cross-
• encourage and promote diversity functional franchises: Wound care, Operating
• have an active dialogue with stakeholders Room (OR) solutions, Antiseptics and Surgical
such as suppliers and trading partners Gloves. Additionally, during 2018, Mölnlycke
• have a secure and anonymous reporting acquired the German oxygen therapy company
channel (helpline) in place. SastoMed, which complements our Wound
management offering and adds another
franchise, Biologics, to our structure.
11About the company
History Executive Vice President (EVP) Commercial:
Mölnlycke was founded in 1849 in Sweden global sales, commercial excellence, EVP
as a textile manufacturer and pioneered the Marketing and Wound care: global marketing,
industrial manufacture of wound dressings. marketing communications and branding, and
Since then, the company has grown through Corporate Social Responsibility (CSR)
innovation and acquisition into the global
company we are today. EVP Operations and RQA: global end-to-end
supply chain process, Mölnlycke Business
Our name, Mölnlycke (pronounced ‘Monlicka’), Model (MBM) process, lean standardised
reflects the town of Mölnlycke, which grew up manufacturing, procurement, distribution,
around the company. We are now based nearby logistics, customer care, quality assurance,
in the city of Gothenburg. Environment, Health and Safety (EHS), Quality
and Regulatory Affairs
Financial performance
Our net sales during 2018 were EUR 1,491 EVP Research and Development and MCMA:
million. Operating costs amounted to EUR R&D, portfolio management, Medical, Clinical
431 million, employee compensation EUR 345 and Market access (MCMA)
million, retained earnings EUR 1,195 million,
paid interest EUR 19 million and paid taxes EUR EVP Finance, IT and Business Development:
32 million. EUR 450 million was distributed to finance business partners, finance expertise
the owner Investor AB. teams, transactional finance teams, IT and
business development
There were no financial implications due to
climate change activities, nor did the company EVP Legal and Compliance and General
receive any direct financial assistance from Counsel: legal affairs, compliance, intellectual
governments. property and trademarks
Our governance EVP Human Resources and Corporate
The board Communications: HR business partners, HR
In 2018 the company operated under a ten- expertise teams, working environment and
member board of directors, comprising of internal and external corporate communication
six independent members, our CEO, one
member from Investor AB and two employee EVP Operating Room (OR) Solutions: full
representatives. The chairman is one of the organisational responsibility for the product
independent board members. In 2018 the areas of Mölnlycke® Procedure Trays, staff
board held eleven meetings. clothing and drapes
The Executive team When determining the composition of the
In 2018, the nine-member Executive team had highest governance body and its committees,
day-to-day responsibility for the operational an adequate mix of qualification, gender and
parts of the business: nationalities are prioritised.
CEO: overall corporate responsibility
12Sustainability report 2018
Compliance Officer, the EVP Human Resources and the
The Global Compliance Committee (GCC) General Counsel. This team decides on what
consists of the CEO (chairman of the department is most appropriate to investigate
committee), the EVPs and the Chief Compliance and escalate each incident. We investigate
Officer. The GCC defines our Compliance reported incidents and take appropriate
Programme framework and related principles disciplinary action following defined
as promulgated in our Code of Conduct, policies procedures and follow-up measures where
and procedures. The GCC is complemented by necessary.
regional as well as local affiliate compliance
committees. The Compliance committees Our relationships with others
promote a compliant culture and maintain the Our stakeholders
standard of compliance governance across We define a stakeholder as anyone who has an
Mölnlycke. This ensures compliance with all interest in, or interaction with Mölnlycke. We
applicable laws and regulations and industry have conducted extensive stakeholder analysis
standards where Mölnlycke does business. to define our stakeholders and our obligations
to them.
Corporate governance
In terms of corporate governance, we comply We are committed to doing business in a
with Swedish company law. sustainable manner to benefit stakeholders:
our customers, consumers, employees,
We ensure our employees and shareholders suppliers, authorities, non-governmental
have a say in decision-making at the highest organisations (NGOs), the media, and the local
level of governance in accordance with Swedish communities where we operate.
law. We employ staff to guarantee that we
meet all the necessary rules in areas such as We are committed to comply with applicable
employment and environmental impact. laws, regulations and standards around
the world. The safety of the people who use
Dealing with complaints, accusations our products is paramount and we comply
and concerns with inter alia, local laws and regulations,
There are multiple mechanisms that allow the EU 93/42/EEC and 2007/47 EC Medical
employees (who may also be shareholders) Devices Directive as well as other standards
to report concerns related to legal, financial, relating to product responsibility. We also set
environmental ethical and social issues: the objectives and target our efforts to prevent
Compliance Committees, the CSR Panel, our harm to employees and others who come on
local Environment, Health and Safety (EHS) to our sites. Our community support approach
teams and our global EHS team in Gothenburg. is designed to benefit both communities
worldwide and local communities in the places
We also deploy a helpline through which where we do business.
employees around the world can anonymously
report any incidents of corruption, illegal or Strategic partnerships
unethical behaviour whenever they occur We have always had strong relationships with
in local language. The helpline connects to our suppliers. As a large medtech company,
a team consisting of the Chief Compliance we are also in a position to strengthen our
13About the company
innovation offer through external strategic In 2018, we actively engaged in MedTech-
agreements. sanctioned and - driven lobbying and public
policy activity.
Understanding our stakeholders
In several of our markets, important
stakeholders – such as healthcare
organisations, hospital purchasers, healthcare
professionals and patients – have high
expectations of the environmental, ethical
and social standards of their suppliers. We
conducted around 10 substantial market
research projects during the year – mostly
among healthcare professionals – to gain a
greater understanding of their needs.
At Mölnlycke, we are dedicated not only to living
up to, but also to exceeding those expectations.
Therefore, we engage in written and oral
communication, advisory panels and surveys
in order to get a better understanding of issues
that are most important so that we can take
appropriate action. While we still have some
way to go in reaching some of our targets, we
are, and always will be, transparent in our
reporting.
Engaging in public policy
We take an active role in promoting good
practice within the medical supply and
healthcare industries through engagement
with public policy. We develop public policy
positions and take part in responsible lobbying,
principally through our membership of the
MedTech Europe, which represents the
medical technology industry in the EU. We
are also a member of the following trade
associations: the Advanced Medical Technology
Association (AdvaMed) in the US, the Medical
Technology Association of Australia, Canada’s
Medical Technology Companies and Swedish
Medtech.
14Sustainability report 2018
Our global footprint
1 global HQ and R&D
Gothenburg, Sweden
15 manufacturing sites
36 sales offces
countries with sales through distributors
15Responsibility for
our products
Mölnlycke provides medical solutions for wound treatment, prevention and for use in
surgery. The quality and safety of our products is at the core of our business. Through
our process-based quality management system, we constantly analyse and review
quality throughout the product life cycle and seek to continuously improve everything
we do.
• defining roles and responsibilities for each
Our quality policy step of the process.
Mölnlycke® is a world leading medical
solutions company. Our purpose is to advance The systematic approach gives us a high
performance in healthcare across the world. level of transparency, allowing us to view and
analyse the way we work in detail. This, in turn,
Every Mölnlycke employee shares ownership provides a solid foundation for improvements
and maintains the effectiveness of our quality and change management.
management system, we strive for continuous
improvement and maintain and encourage Mölnlycke operates a global quality system
an environment which promotes proactive and our sites have complementary local quality
change. systems and staff who are responsible for local
quality management and compliance.
We aspire to equip everyone in healthcare
with solutions to achieve the best outcomes Quality – how we monitor
through our commitment to patient safety and performance
compliance to applicable regulatory and quality To continuously deliver customer
requirements. improvements and benefits, we focus on the
following:
Design controls
Our quality management system During R&D, we follow a product development
Mölnlycke has established, documented, process to ensure that our ideas not only
and implemented a process-based quality meet customers’ needs but also satisfy safety
management system as a means of providing standards. All ideas are thoroughly assessed,
a structure for maintaining effectiveness and and those that receive positive evaluation
initiating continual improvement. The quality continue to the development phase where
system is defined and managed as a series of potential design hazards are identified and
interlinked processes based on: risks are eliminated or minimised. We conduct
clinical trials to test our product solutions
• identifying the inputs and outputs required at and follow all applicable regulations and
each step in the process standards. We restrict the use of animal testing
• determining what activities are needed to get in clinical trials and work actively to develop
from input to output alternative test methods. We only test our
16Sustainability report 2018
products and materials on animals when this is and comply with local laws such as fair
required by law. remuneration, minimum age of employees and
working hours. We visit suppliers to ensure
Quality control that the materials and products we purchase
Mölnlycke production facilities operate an from them are being produced in a way that
effective quality system including quality provides dignity and respect for workers in the
control (QC) processes. The quality teams supply chain.
operate under stringent controls, continuously
monitor processes and products during the Customer feedback
production phase to make sure our products We consider all customer complaints related
meet the quality specifications, and proactively to the quality and safety of our products.
look for opportunities to improve. We review, evaluate, investigate, and take
corrective and preventive actions, where
Corrective action and necessary. And we periodically measure
preventive action customer satisfaction through surveys to
We drive continuous improvements via our make sure we continue to meet customer
corrective and preventive action (CAPA) expectations.
process. We conduct root cause investigations
of any process issues, followed by corrective Post-production surveillance
action to resolve the issue and prevent the After product launch, we monitor products
problem recurring. through our post-clinical follow-up, product
risk management, and post-market sur-
Audits veillance processes. We review product use
We verify conformance and effectiveness and determine if it meets customer needs and
of the quality system and our ability to meet quality standards. We use this feedback and
regulatory and quality requirements through the insight it generates to adapt and improve
internal and external audits. the product design.
Management review Managing our products’ life cycle
Mölnlycke management undertakes a review We take a 360-degree approach to product
starting at the corporate and executive level manufacture, considering our customers’
and extending through our manufacturing health and safety as well as our environmental
sites and distribution centres. We document impact at every stage of the product life cycle.
and escalate quality and process issues, as We have internal processes that govern how
appropriate. we develop, manufacture and supply our
products to minimise risk to users and patients
Managing suppliers in accordance with ISO 14971.
Our primary suppliers are assessed to ensure
they meet our quality requirements. We In production
evaluate suppliers and use third-party auditors During implementation, we set up systems
to conduct supplier assessments, where for the supply of materials, production and
necessary. The suppliers’ manufacturing sites distribution of the product, as well as how we
should provide a safe working environment will handle any waste generated.
17Responsibility for our products
The steps in the product development process Promoting industry standards
are documented and stored in product data Mölnlycke has a strong track record of helping
management. to develop industry standards and awareness.
In the 1980s, we worked to establish Eucomed,
Labelling and marketing the trade association for medical device
The labelling of our products follows regu- manufacturers in the EU. Mölnlycke continues
lations applicable to the regions where our to contribute to developing and raising industry
products are sold. Our marketing material standards, especially within wound care and
undergoes a review process including approval surgical equipment.
by our legal and regulatory departments.
Certification and compliance
Professional sponsorships Our quality, environment, health and safety
Sponsorships and interactions with healthcare systems are certified to standards applicable
professionals are governed by our Compliance to the products we manufacture. As a global
Programme policies and procedures. The medical solutions company, Mölnlycke
Corporate Compliance Committee (made up complies with the regulations applicable to the
of our Executive team and Chief Compliance regions where our products are sold.
Officer), are responsible for approving and
implementing the Compliance Programme
policies and procedures.
OUR CERTIFICATIONS INCLUDE:
ISO ISO OHSAS ISO
9001 14001 18001 13485
Quality Environmental Occupational Quality MDSAP
Management Management Health and Management
Safety System
Management Medical Devices
18People
Mölnlycke ensures that all of its employees worldwide have basic human rights
with regard to their employment with the company. We also strive to create an
environment where our people feel empowered to develop to their full potential,
wherever they work.
Hotline reports are promptly investigated, and
Our policy appropriate corrective action is taken.
It is Mölnlycke’s policy to support and respect Overall responsibility for setting appropriate
the protection of internationally proclaimed anti-slavery and human trafficking policies sits
human rights and make sure that the company with the Global Compliance Committee (GCC).
is not complicit in human rights abuses.
Human rights –
To this end, Mölnlycke is committed in its Our performance 2018
global business practices to the elimination None of our operations were subject to a
of all forms of forced or compulsory labour, human rights review or impact assessment.
the effective abolition of child labour, and the We conducted human rights training in our
elimination of discrimination in respect of high-risk markets, as well as within our
employment and occupation. manufacturing, legal, procurement and
regulatory teams.
Social conditions and human rights We received no report of wrongdoing in 2018
Workers’ rights are set out in our Code of through our helpline. We have dealt with all
Conduct and Modern slavery statement: human rights grievances in an appropriate way.
• Employment should be freely chosen, and Social conditions –
no individual should be subject to forced, Our performance 2018
bonded or compulsory labour. We follow employer regulations and local
• No form of child labour under 15 years is laws in all countries. We act as a responsible
accepted. employer and have salaries and benefits
• Employees should not be prevented from that correspond to market levels. In factories
associating freely. where there are unions, we have collective
• Working conditions should be safe and bargaining agreements and as applicable by
hygienic. country, we have work councils.
• Wages and working hours should meet
national legal standards. Diversity
• Discrimination is prohibited. With almost 8,000 employees spread across
the world in a wide variety of jobs, we are a
Social conditions and human rights – our diverse, multicultural organisation. We know
approach a good mix of employees in a global company
To help make sure that human and social rights has different characteristics, experiences,
are respected, we have a whistleblowing hotline backgrounds and mindsets. We believe our
available to our employees in local languages. diversity enables us to truly understand and
19Our people
deliver what healthcare professionals and Talent development
patients need around the world. When we enter Part of our HR strategic focus on Capabilities
new markets, we invest in local employees on and Leadership excellence is to identify,
all levels, including management, to ensure recognise, develop and promote internal
full understanding of local market conditions. talent. During 2018, 60 percent of director
This is balanced with the multicultural ambition positions were recruited from inside the
of our company to promote a mix of people company, compared to an average 50 percent
of different cultures, ages, sexes, religions, in 2017 and 35% in 2016. Developing leaders
working patterns, and abilities to facilitate and employees with top class capabilities is
innovation and out-of- the-box thinking. In crucial for Mölnlycke to stay competitive in a
2018, women made up 65 percent of our staff, demanding global environment. We have set
were strongly represented in our factories and an aspirational target for 70 percent of our
performed 45% of our middle-management director level and above positions to be filled
roles, however they made up a third of our with internal talent by 2023. This represents
senior leaders. We therefore recognised that a healthy ratio of internal versus external
we need to take action on gender diversity, recruitments, as there will always be a need
particularly at a senior leadership level. During to attract talent from outside Mölnlycke to
the year, we launched a gender diversity stay abreast of external market dynamics and
charter. Our ambition is for women to make up acquire new capabilities where necessary.
40 percent of our senior leaders (Director level
and above) by 2023. Talent acquisition
To support our growth and deliver on our
Learning and development strategy, Mölnlycke continues to build a
To drive our business forward, we have four diverse, multi-cultural global workforce and
high-performance behaviours we expect of as the talent market remains competitive and
all our employees, and which we use to recruit challenging, we look for new ways to attract
and manage them: Customer at heart; Own the the right talent with the right capabilities to our
outcome; Appropriate urgency; and Teamwork. business and deliver on the right candidate
experience.
Leadership capabilities
Four leadership capabilities have been During 2018, we prepared to launch our new
developed, applicable for all managers of Talent acquisition model in the first quarter of
people. These will be used to inform and 2019. We introduced a new careers page in our
improve recruitment, training, development website, advertising our vacancies globally
and internal promotions for future leaders alongside other widely used recruitment
in 2019 and beyond. Our four Leadership channels and where applicants can apply
Capabilities are: quickly online as well as complete a candidate
profile and create job alerts. This will improve
• Set direction our candidate reach and build a talent
• Motivate and inspire community for those interested in working for
• Be authentic Mölnlycke. Internally it will automate, speed
• Develop talent and capabilities up and streamline our overall recruitment and
selection process.
20Sustainability report 2018
We also updated our Employer Value • instructor-led and e-learning courses that
Proposition (EVP) to truly represent our relate to employees’ specific jobs such as
ambitions as a global employer. In addition, health and safety, sales management and
we have introduced a dedicated recruitment product launch training programmes.
team working across 24 countries. We have
contracted with Korn Ferry Recruitment We train our employees regularly to ensure
Process Outsourcing to deliver this specialist that they are aware of our Code of Conduct, our
team. They partner with our hiring managers Global Code of Ethics and Integrity and what
and HR to deliver the Mölnlycke global talent is required of them. We further invest in those
acquisition strategy by sourcing and attracting who have the potential and willingness to do
talented people who have the skills we need more by supporting their development through
attracting talented people who have the skills global leadership programmes.
and capabilities we need.
Learning and development –
Overall, these new ways of working simplify Our performance 2018
our internal processes; provide greater A total of 93 percent of our employees
visibility of our opportunities externally; deliver completed and signed the Code of Conduct
the right candidate experience and build our training.
Mölnlycke talent community with individuals
who are also committed to improving Employee surveys
outcomes for healthcare professionals and We perform regular employee surveys
patients. to understand the level of engagement
employees have with the company and the
Learning and development – drivers affecting that engagement. The
our approach information collected in the surveys is
Our learning philosophy is based on the 70–20– extremely valuable to support the sustainable
10 principle that states learning is gained: development of our company, our culture and
our employees.
• 70 percent from on-the-job experiences
• 20 percent from coaching and feedback In autumn 2018, we conducted a cultural
• 10 percent from instructor-led courses or survey among 2,806 white-collar workers
e-learning courses. across the globe, and 93 percent of our
employees responded. The next survey will
Some of the learning available includes: take place in autumn 2019.
• mandatory e-learning courses for all Engagement Index
employees, covering topics such as our In the 2018 employee survey, we achieved
quality and information security policies an Engagement Index (a composite of four
• e-learning and instructor-led courses engagement-related questions) of 74 percent.
offering training in topics such as IT The global external benchmark for 2018 was
knowledge and soft skills 72 percent.
21Our people
People data Female Male
Globally,
total 7,807
Gender split
Employees globally Leaders (Director level and up)
Male 2,718 35% Male 94 68%
Female 5,089 65% Female 45 32%
Total 7,807 100% Total 139 100%
Employees
Employees Americas Employees Asia/Pacific Europe, Middle East/Africa
Male 398 55% Male 1,015 28% Male 1,248 36%
Female 320 45% Female 2,584 72% Female 2,212 64%
Total 718 100% Total 3,599 100% Total 3,460 100%
Leadership diversity
Approximately 34 percent (46 of 136) of our most senior leaders (director and above) are women.
Mölnlycke Board of Directors, 31 December 2018
0–30 years: 0; 30–50 years: 3; 50+ years: 7
Gunnar Brock, Swedish, M Sharon James, British, F Carolin Jakobsen*, Swedish, F
Christer Eriksson, Swedish, M Johan Malmquist, Swedish, M David Valham*, Swedish, M
John Hepburn, Canadian, M Karl-Henrik Sundström, Swedish, M
Clare Hollingworth, British, F Richard Twomey, British, M * Employee representative on the Board
Mölnlycke Executive Management Team, 31 December 2017
0–30 years: 0; 30–50 years: 4; 50+ years: 5
Richard Twomey, British, M Stefan Fristedt, Swedish, M Martin Lexa, German, M
Anders Andersson, Swedish, M Kristin Hedlund, Swedish, F Barry McBride, British, M
Cathy Dalene, Norwegian, F Eric de Kesel, Belgian, M Gavin Wood, Canadian, M
By employment type
Blue collar/white collar
Americas Asia/Pacific Europe, Middle East/Africa
White collar 543 76% White collar 625 18% White collar 1,991 56%
Blue collar 175 24% Blue collar 2,892 82% Blue collar 1,579 44%
Total 718 100% Total 3,517 100% Total 3,570 100%
Permanent/temporary employment
Americas Asia/Pacific Europe, Middle East/Africa
Permanent 709 98.7% Permanent 3,501 99.5% Permanent 3,056 85.6%
Temporary 9 1.3% Temporary 16 0.5% Temporary 514 14.4%
Total 718 100% Total 3,517 100% Total 3,570 100%
22Sustainability report 2018
2,015
By location
1,197
1,020
550 653
541
372
364
157
155 122
99 64
49 48 17 60 44 38 22
26 25 24 23 22 22 19 9 31 9 10
Europe, Middle East/Africa Americas Asia Pacific
Europe, Middle East/Africa Americas
Czech Republic 1,020 Poland 49 US 653
Finland 550 Norway 26 Brazil 48
Sweden 541 Netherlands 25 Canada 17
Belgium 372 Austria 24 Total employees 718
UK 364 Hungary 23
France 157 Switzerland 22 Asia Pacific
Germany 155 Denmark 20
Spain 99 Malaysia 2,015
United Arab Emirates 19
Italy 64 Thailand 1,197
Saudi Arabia 9
China 122
Other 31
Australia 60
Total employees 3,570 Japan 44
Singapore 38
India 22
Republic of Korea 9
By function Other 10
Total employees 3,517
Operations 5,236 5,236
Commercial 1,467
Quality Affairs 360
R&D 238
Finance 220
HR/Communication/Support 134
Information Technology 95
Regulatory Affairs 42
1,467
Legal/Compliance 10
Corporate Strategy &
Business Development 5 360 238
220 134 95 42
Total employees 7,807 10 10
For the purpose of this report, the number of employees is our headcount: all employees, including temporary employees,
with an employment contract with Mölnlycke, who are also paid through the company pay-roll.
23Minimising
environmental impact
Managing the environmental impact of what we do is a high priority for Mölnlycke. We
continuously work to prevent harm to the environment by adopting and implementing
best practice through our supply chain. As a result of this, we have a global ISO14001
certifcation for environmental management since 2002. We continuously monitor
our environmental performance and compliance with relevant laws and regulations
wherever we operate.
Environmental management –
Our policy our approach
We want our business to be conducted in Environmental management is a core part
a long-term sustainable way. In the short of our corporate management system. At a
and long term, we take responsibility for global level, we develop strategies, policies
protection of the environment from impact and and objectives to ensure fulfilment of our
pollution caused by our activities, products compliance obligations and continuous
and services. We contribute to sustainable improvement. At a local level, all of our
development by: sites are responsible for complying with
environmental legislation, implementing
• our commitment to fulfilment of compliance our Sustainability policy and meeting
obligations our environmental objectives. We have
• conducting our business activities to systems and procedures in place to monitor
minimise our impact on the planet and performance against environmental targets
its natural resources. We strive for at all of our manufacturing sites and certified
continuous reduction of the environmental offices.
impact caused by our business through
setting and continuously monitoring Climate impact
suitable environmental objectives. We use We are firmly committed to reducing climate
environmental resources as effectively impact. To achieve this, we are actively working
as possible and strive to minimise use of to reduce air freight, to optimise the fill rate
substances and materials that are harmful of trucks and to optimise transport routes
to humans and our environment and deliveries to our customers, so fewer
• securing our company's future and business product transport journeys are needed. In
position in the best way by taking into collaboration with our transportation partners,
account our stakeholders’ expectations and we measure climate impact from transport
requirements of raw materials to factories, goods travelling
• striving for continuous improvement of our between factories, and finished goods going to
environmental performance, maintaining our warehouses.
and encouraging an environmental
management system which promotes We have included energy in our measurement
proactive change. of climate impact and are working on
expanding it further.
24Sustainability report 2018
Energy consumption However, the primary purpose of our
We measure and monitor our consumption products is to heal wounds, prevent medical
of energy. Some of the processes required conditions, or enable improved results in the
to produce high-quality, sterile medical and operating room. We can never endanger the
surgical products are energy-intensive and we health outcomes of patients only to minimise
are constantly evaluating how we can make environmental impact. For example, the
these processes more energy efficient. process we use to sterilise our products may
lead to small increases in our use of chemicals
Waste management and electricity – but it is essential to guarantee
We seek to use materials more efficiently to patient safety. This means that we have to be
reduce the amount of potentially harmful waste cautious but also curious when looking at new
we generate. This includes reviewing the type chemicals, materials or products.
and quality of materials we source as well as
the way we make and package our finished How we assess new materials and
goods. chemicals
We comply with the EU regulations and
Since the majority of our products are single- directives that apply to our products, such
use and must be burnt to prevent the spread of as REACH – Registration, Evaluation,
infections and bacteria, it is often not possible Authorisation and Restriction of Chemicals,
for our clients to recycle the used products. Restriction of Hazardous Substances (RoHS),
We are, however, committed to good recycling and the Waste Electrical and Electronic
practices in our factories and have targets and Equipment (WEEE) directive. During product
actions in place to reduce waste. development, we categorise raw materials
according to potential harm to the environment
We also recommend that our customers and we strive to minimise or substitute the
recycle packaging materials such as plastics, ones that are potentially hazardous. All our
cardboard and corrugated board. We take factories continuously monitor the amount
responsibility for waste from our electrical of chemicals used on site to minimise their
products, such as negative pressure wound consumption.
treatments, and have systems in place for
the collection of waste electronics and used Water consumption
batteries. We continuously strive to reduce the amount
of fresh water we use for our production
Materials and chemicals processes.
We strive to remove potentially hazardous
chemicals from our manufacturing processes
and products, and replace them with
equally effective, but less harmful solutions.
We systematically strive to minimise the
environmental impact of our products.
25Minimising environmental impact
Our environmental management level, throughout the organisation, to the
system manufacturing sites. We document and
Mölnlycke has established, documented, and escalate identified issues, as appropriate.
implemented a process-based environmental
management system which is integrated In production
with our quality management system. This The environmental performance is frequently
system provides a structure for maintaining followed up and discussed in our factories. For
effectiveness, continuous proactive change example, we conduct regularly inspections
and improvement. Mölnlycke operates a high- of all our manufacturing sites, we discuss
level management system at a global level and, environmental issues in different forums, we
in addition, our operational sites also have local measure environment-related parameters in
systems established. the factories and ensures our environmental
protection equipment is sufficient.
Environment – How we monitor and
improve our performance Reporting
To continuously improve our environmental Our environmental performance is monitored
performance, we focus on: systematically and measured at our
manufacturing sites, distribution centres
Corrective action and preventive action operated by us and certified offices. The results
We drive continuous improvement through are presented in a global report and evaluated
our corrective and preventive action (CAPA) with regard to set objectives and targets.
process. We conduct root cause investigations
of any process issues, followed by corrective Training
actions to resolve the issue and prevent the We have programs of regular and ad-hoc
problem recurring. environmental training courses for employees,
subcontractors and visitors at our sites.
Accident investigation
We conduct root cause investigations of all Certification and compliance
environment-related accidents at our sites, As a global company, Mölnlycke complies
followed by corrective actions to resolve root with local regulations as well as relevant
causes and prevent them from happening global frameworks. Mölnlycke is globally
again. Experiences from accidents are shared certified for fulfilling ISO14001:2015 standard
between our sites in the global EHS team. requirements.
Audits Legal compliance
We carry out internal and external audits to We have policies, processes and procedures to
verify the effectiveness of our environmental assure legal compliance.
management system and our ability to fulfil
compliance obligations.
Management review
Mölnlycke’s management conducts reviews
of our environmental performance regularly,
starting at the executive management
26Sustainability report 2018
Environment – Our objectives • Reduce emissions from product transport
During 2018 we set ourselves six objectives: related carbon dioxide by working internally
and with our external partners to drive
• No legal proceedings for environmental efficiency throughout the entire supply chain
related issues • Strive to remove hazardous chemicals
• No accidents resulting in external from all areas of the business and replace
environmental pollution them with chemicals less hazardous to the
• Improve utilisation of working materials, environment
thereby continuously reducing • Get all relevant manufacturing sites certified
manufacturing waste, manufacturing for ISO 14001 by end 2019
emissions harmful to the atmosphere, water
or land and use of environmental resources
How we performed: Climate impact
Target 2018 to changes at our manufacturing sites, particu-
To reduce CO2 from product-related transpor- larly the start up of our new factory in Havirov.
tation by 2 percent in relation to the produced
weight of finished goods CLIMATE IMPACT FROM TRANSPORTS
Our performance 2018
0.4
0.2
0.3
0.5
0.0
0.6
0.1
Climate impact from transports 2018 0.39
CO2 emissions from transportation increased
2017 0.37
by 3% in 2018 to 22,177 tons. This was mainly
due to a temporary increase in the use of air
CO2e (ton) per produced ton of finished product
freight, as shown in the table below.
Improvements begun at our distribution
Transport method 2018 2017 Diff [ton] Diff [%] centres in 2018 will help to reduce transport-
Air 1,050 469 581 124% related emissions in the coming years. These
Boat 9,668 9,782 -114 -1% include:
Truck 11,459 11,216 243 2%
• Switching from truck to intermodal rail and
motor transport between our distribution
We used air freight as a fall back because of centres in Waremme, Belgium and
temporary capacity problems at some of our Landskrona, Sweden. This has already
key suppliers. We have now resolved these is- resulted in a truck related product transport
sues and expect air freight to be reduced again CO2e saving of 60%. Since the metric does
in 2019. Emissions from truck transportation not yet include outbound logistics from
also increased slightly over 2017. This was due distribution centers, this is not reflected in
the target outcome for 2018.
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