Sustainability Report 2020/21

Company registration (CVR) No. 69 74 99 17

Sustainability Report

_____

2020/21

Tabitha,

IC device user

Statutory Report cf. Danish Financial Statements Act sections 99 (a), (b) and 107(d)

Making life easier

Highlights 2020/21

58% 10% 2.2ppm

Production waste is	Scope 3 emissions	Lost Time Injury
recycled, improved	reduced per product,	frequency, improved
from 41% in	compared to base year	from 2.5 ppm in
2019/20	2018/19	2019/20

2

Overview of 2020/21

The table illustrates our governance, ambitions and performance.

Commitments	UN Global Compact	2025 ambitions	2020/21	2019/20
	principles
Strive25 priority areas
Improving	Principle 7-9	90% of packaging is recyclable	75%	75%
products and		80% of packaging consists of renewable materials	70%	70%
packaging		75% of production waste is recycled	58%	41%

Reducing	Principle 7-9	Net-zero scope 1 & 2 emissions2,3	23,100	21,000
emissions1		100% renewable energy	67%	67%
		50% electric company cars	2%	1%
		50% scope 3 emissions reduced per product by 20303	10%	0.3%
		10% reduction of air travel vs. 2018/19 and then freeze	81%	45%
		5% limit on goods transported by air	2%	4%
Ongoing commitment
Responsible	Principle 1-6, 10	100% white collars trained in Code of Conduct	99%	98%
operations		2.0 Lost Time Injury frequency4	2.2	2.5
		30% representation of female senior leaders (VP+)	24%	24%
		75% share of diverse teams	50%	51%
		Engagement score above industry benchmark	8.2	7.9

1from base year 2018/19

1. in tonnes CO2e
2. targets submitted to Science-Based Targets initiative (SBTi) for validation
3. in ppm

3

INTRODUCTION

Table of content

Introduction	4
CEO letter	5
Business model and risks	6
Governance of sustainability	7

2025 sustainability strategy	9
Improving products and packaging	9
Reducing emissions	15
Responsible operations	21
Raising the standards of care	22
Product quality	24
Employee health and safety	26
Business ethics and compliance	28
People and culture	32
Inclusion and diversity	33
Performance tables	36
Basis of preparation	36
Environment data	37
Social data	42
Governance data	44
Appendices	45
Stakeholder engagement and materiality	45
Independent limited assurance report	47

This report constitutes our Communication on Progress in implementing the principles of the United Nations Global Compact and supporting the broader UN goals.

We welcome feedback on its contents.

4

INTRODUCTION CEO letter

CEO letter

Coloplast is a purpose-driven company. For more than six decades, we have worked to make life easier for people with intimate healthcare needs. Today, we help more than two million - and aspire to help even more in the years to come. Last year, we launched our Strive25 strategy with a clear priority to run our company in a more sustainable way. We want to improve our products and packaging and reduce emissions while improving how we operate responsibly. Although there is still more work to do, I believe we are showing good progress across all three areas. Here are a few highlights.

Improving products and packaging

Plastic waste is a challenge in our society and Coloplast is committed to being part of finding sustainable solutions. Our priority is to bring more renewable materials into our products and packaging and increase recyclability, as well as working on our product design to minimise our impact.

As there are strict limitations on our products, there are more possibilities when it comes to packaging. In 2020/21, we have focused on primary packaging and initiated a project to convert virgin PET plastic trays to recycled PET plastic trays in ostomy baseplates and protective seals within our supporting products portfolio.

During 2020/21, we exceeded our waste recycling target of 50% by 2025 due to a new partnership in Hungary, enabling us to recycle our production waste into materials used for flooring in playgrounds and sports fields.

Consequently, we now recycle 58% of our production waste. The partnership shows the potential in seeking new and different ways of operating, and we will continue to pursue options like these to accelerate the agenda even further.

Therefore, we have set a new waste recycling target of 75% by 2025.

Reducing emissions

Reducing emissions is another priority to Coloplast. The latest IPPC report underlined the need for action to fight climate change and limit the global temperature increase to 1.5°C as listed in the Paris Agreement. Our ambition is to become net-zero in scope 1 & 2 and use 100% renewable energy by 2025. In 2020/21, we have been in dialogue with renewable energy suppliers and initiated a project to install solar panels on the roof of our site in the US. Our new site in Costa Rica already uses 100% renewable electricity. This year, we submitted our net-zero scope 1 & 2 target and scope 3 target of 50% emissions reduced per product by 2030 to the Science-Based Targets initiative for validation. These are ambitious targets, and we can only succeed if we work together with our suppliers and partners. I am optimistic and look forward to the challenge.

Ensuring responsible operations

Ensuring responsible operations is key to running a successful company. We strive to improve how we operate, and this is tied to our company values, respect and responsibility. This year, we signed the Confederation of Danish Industry's

Gender Diversity Pledge, committing our global company to increase diversity in our senior leadership, as we believe that diversity leads to different perspectives, more nuanced discussions, and ultimately better results.

I encourage you to read on and learn more about our sustainability efforts in 2020/21 - and I hereby confirm our commitment to the ten principles of the UN Global Compact as well as our support to the UN Sustainable Development Goals.

Kristian Villumsen

President and CEO

5