Smith & Nephew: Smith & Nephew : Sustainability Report 2024

Life Unlimited Sustainability Report 2024 Introduction About us Our focus areas Business ethics Appendix People Planet Products Welcome to our annual Sustainability Report. We are pleased to provide an update on the actions taken to deliver our Environmental, Social and Governance (ESG) strategy and a detailed update for each of our focus areas: People, Planet and Products. This report is supplemented by our website, which provides more detail on ESG policies and progress: » For more details see our sustainability webpages Introduction Our purpose Our ESG strategy in action 2024 highlights A message from our Chief Executive Officer About us Who we are Engaging with our stakeholders Our ESG governance framework Our ESG strategy Our ESG objectives Our focus areas People Our objectives Our People strategy in action Making a positive impact on society Inclusion and belonging Volunteering Giving Health, safety and wellbeing Planet Our objectives Our Planet strategy in action Mitigating climate change Minimising waste to landfill Water conservation and efficiency Products 12 Business ethics 40 13 Ethics oversight and awareness 41 13 Monitoring the effectiveness 42 14 of our programme 15 Data privacy 42 16 Appendix 43 18 UN Sustainable Development 44 Goals alignment 20 Data on environmental performance 45 21 Independent assurance 46 23 Contact us 48 23 24 25 29 31 32 Welcome Smith+Nephew Sustainability Report 2024 Our objectives 32 Our Product strategy in action 33 Designing more sustainable products 34 Product safety and quality 36 Improving packaging sustainability 37 Supplier engagement and working with 38 responsible third parties 1 Introduction About us Our focus areas Business ethics Appendix People Planet Products Our purpose Together we are delivering Life Unlimited Physical health is never just about our body. It's our mind, feelings and ambitions. When something holds us back, it's our whole life on hold. We're here to change that, to use technology to take the limits off living, and help other medical professionals do the same. So that patients can stare down fear, see that anything is possible, then go on stronger. Inspired by a simple promise. Two words that bring together all we do... Life Unlimited To learn more about our purpose in this video, click here Smith+Nephew Sustainability Report 2024 2 Introduction About us Our focus areas Business ethics Appendix People Planet Products Our ESG strategy in action Celebrating the positive impact of our work Smith+Nephew's purpose of Life Unlimited drives all that we do and provides the framework within which we conduct our business. It reflects our commitment not only to restoring patients' bodies and self-belief through innovation that takes the limits off living, but also our commitment to operating in a sustainable and ethical way that enables us to have a positive impact on our global community. A culture of Care, Courage and Collaboration. We've been improving health around the world for nearly 170 years. Although we have come a long way from our beginnings as a small family pharmacy in Hull, UK, helping patients has remained our priority. Our ESG strategy in action This report features 'Our ESG strategy in action' stories that showcase how our actions have had a positive impact across the three pillars of our ESG strategy. People Creating a lasting positive impact on our employees and communities. See pages 13-22 Planet Working to reduce our impact on the environment. See pages 23-31 Products Innovating sustainably across the value chain. See pages 32-39 Our culture - Care, Courage and Collaboration - defines who we are and creates an environment that sets us up for success. We seek to engage and motivate employees, help them understand our purpose, and their contributions to it. We strive to deliver our ESG strategy through the application of our corporate values: We demonstrate Care by respecting our global resources and striving to protect the safety and wellbeing of our employees. We demonstrate Courage by supporting employee volunteering, reducing waste and greenhouse gas (GHG) emissions, and by operating responsibly and sustainably. We demonstrate Collaboration by working together with our partners who share our commitment to protecting the planet and contributing to our communities. Smith+Nephew Sustainability Report 2024 3 Introduction About us Our focus areas Business ethics Appendix People Planet Products 2024 highlights Smith+Nephew's purpose of Life Unlimited reflects our commitment to operating in a sustainable and ethical way that enables us to have a positive impact on our global community. We are proud of the progress we've made across all three pillars of our Environmental, Social and Governance (ESG) programme. People Creating a lasting positive impact on our employees and communities More than 380,000 patients supported globally through humanitarian donations of Smith+Nephew products More than 150 inclusion and belonging engagements across an Employee Inclusion Group (EIG) network of 4,500+ individuals 68 impactful Smith+Nephew volunteer engagements organised and more than 11,000 individual employee volunteer hours logged Planet Working to reduce our impact on the environment 95% of manufacturing waste kept out of landfills Increased energy efficiency and renewable energy use, driving a 63% reduction in our Scope 1 and Scope 2 greenhouse gas emissions since 2019, the equivalent climate benefit of planting more than 700,000 trees 1 Enabled water conservation through on-site rainwater reuse and focus our manufacturing in low water risk geographies Products Innovating sustainably across the value chain Integrated New Product Development sustainability review into new product design processes, addressing eight areas of ESG, including product energy use and carbon footprint, water use, waste, and patient-friendly design supporting social benefits In our inaugural year of portfolio-wide packaging sustainability measurement, 78% of in-scope packaging systems incorporated at least one recyclable component, helping address packaging sustainability challenges in healthcare Supported PICO ◊ Negative Pressure Wound Therapy product recycling by developing component recyclability information for users globally Key Stakeholder Recognitions Named to the FTSE4Good Index and Dow Jones Best-in-Class Europe Index, which are indices that include companies that meet high global ESG standards Rated ISS Prime by Institutional Shareholder Services (ISS) for first decile Health Care Equipment Supplies sector leadership in sustainable practices and responsible business conduct A-level rating from Morgan Stanley Capital International (MSCI) in managing financially relevant ESG risks and opportunities 2 Awarded a Commitment badge by EcoVadis, a leading ESG assessment organisation, for our sustainability achievements globally Awarded EcoVadis Silver medals in Switzerland and Germany for performing within the top 15% of all companies assessed on ESG 2024 Gallup Exceptional Workplace Award winner recognised for embedding employee engagement into our culture Equivalencies estimated per US EPA Greenhouse Gas equivalencies calculator, which notes that 42,378 tonnes of carbon emissions reduced is equivalent to the carbon sequestered by 700,724 tree seedlings grown for 10 years. The use by Smith+Nephew of any MSCI ESG Research LLC or its affiliates ('MSCI') data, and the use of MSCI logos, trademarks, service marks or index names herein, do not constitute a sponsorship, endorsement, recommendation, or promotion of Smith+Nephew by MSCI. MSCI services and data are the property of MSCI or its information providers, and are provided 'as-is' and without warranty. MSCI names and logos are trademarks or service marks of MSCI. Smith+Nephew Sustainability Report 2024 4 Introduction About us Our focus areas People Planet Products A message from our Chief Executive Officer Business ethics Appendix Partnering for a better future Customers and suppliers We took a leading role as Chair of the third annual ESG in Life Sciences Summit in Boston, US, where we had the privilege of facilitating dialogues with medical technology, pharmaceutical and other organisations across the supply chain on what it takes to shape an environmentally sustainable and socially responsible future in life sciences. Employees Environment and community As a manufacturing organisation, we seek to drive efficiency in all we do, which also drives environmental benefits. Waste minimisation and energy efficiency efforts this year have improved our waste diversion away from landfill, and we have further reduced our greenhouse gas emissions in support of our net zero carbon journey - all while driving business growth. Since 1856, Smith+Nephew has worked to bring healthcare to patients around the world. We are proud of our positive impact on society, and even prouder that today, our positive impact to deliver Life Unlimited encompasses both people and our planet. In 2024, we made good progress delivering Environmental, Social and Governance (ESG) excellence to meet the needs of different stakeholders: Investors For the 23rd consecutive year, Smith+Nephew has been named as a constituent of the FTSE4Good Index for performance on ESG metrics important to the investment community. We were also included in the New York Stock Exchange (NYSE) 2024 Global Giving Campaign and 101st annual tree lighting, which highlighted our decades-long partnership with International Health Partners (IHP) to donate medical products to vulnerable communities worldwide. Our focus on employees continues to drive positive impact. As a 2024 Gallup Exceptional Workplace Award winner, we were recognised as a leading company embedding employee engagement into our culture. Our Employee Inclusion Groups (EIGs) supported inclusion and belonging, and other community ESG needs with programmes on neurodiversity, support systems for working parents and care