Sustainability

STATEMENT BY MEG CEO

At The Medical Export Group and Amstelfarma, we understand that our responsibilities extend far beyond the bottom line. We strive to balance the needs of our stakeholders with our duty to protect the planet and enhance societal well-being. This means integrating sustainability considerations into the decisions we make, from procurement and distribution to packaging and waste management.

The sustainability policy in this document reflects our commitment to contributing to a world where nobody has to suffer or die due to limited access to medical care. We believe healthcare is a fundamental right for everyone, everywhere in the world. It is an essential condition for a prosperous future. By balancing sustainability with economic resilience, we strive to create a more sustainable future for all. 

Sustainability Policy

It is our mission to be a dedicated partner for organizations and local agencies who provide emergency and long-term medical solutions to low and middle-income countries. In order to deliver the right medical products and solutions to the right places, we are part of complex global healthcare supply chains. We are well aware that these complex supply chains have a sustainability impact that is not to be neglected. We have therefore created a sustainability policy that is focused on the three overarching categories of sustainability, namely Environment, Social and Governance. We do not only focus on the environmental aspect, because we believe that ecological responsibility, social well-being and sound governance are coherent elements of a sustainable business. In line with this, we are committed to UN’s global compact and SDGs 3, 8, 12 and 13. 

The scope of this sustainability policy includes purchasing, sales and distribution of pharmaceutical products, medical devices and in-vitro diagnostic and it is illustrated below. The goal of this policy is to continuously improve the sustainability impact of our operation. 

Environment

We are committed to reduce the environmental impact of our operations, amongst others by means of local sourcing, sustainable procurement and monitoring and reducing our carbon footprint. By initiating and practicing eco-friendly practices, we aim to preserve the environment for future generations.

• Local sourcing

Local sourcing has great potential to significantly reduce the environmental impact by avoiding carbon emissions that are produced during the transportation of the pharmaceuticals. Additionally, local sourcing supports local economies by creating jobs and fostering community growth. This approach not only aligns with environmental sustainability goals but also enhances supply chain resilience by reducing dependency on distant suppliers. It must be noted, however, that careful consideration needs to be given to the sustainability of the supplier, as locally produced pharmaceuticals or medical devices are not more sustainable by definition if the production is also taken into account.

• Sustainable procurement

We work on sustainable purchasing by requiring our key suppliers to commit to our ESG policy. By doing this, we ensure that our suppliers share and act on MEG's values and sustainability goals. MEG expects its suppliers to implement an environmental policy that includes specific and measurable commitments to reduce environmental impact, for example in the areas of energy consumption, waste reduction and emissions. Continuous improvement of environmental performance is an increasingly important aspect of the partnership with its suppliers.

• Reduction of carbon footprint (Scope 1, 2 and 3)

We carefully measure and monitor CO2 emissions within MEG's operational limits. We report internally and externally on these scope 1 and 2 emissions as defined in the GHG Protocol. There is also a reduction plan in place that can help MEG to reduce its CO2 footprint. In addition, we aim to establish a baseline for the emissions generated by our logistics operation (Scope 3 emissions) through innovative software that helps us with 'carbon accounting'. This carbon accounting tool complies with the latest regulatory frameworks (EN16258, GLEC, ISO14083). After the baseline measurement has been carried out, we actively work on reducing the CO2 intensity of our logistics operation, for example through consolidation, modality shift and the use of sustainable fuels.

• ISO14001

We are working towards creating an Environmental Management System (EMS) conform ISO14001 standards which we aim to certify in Q3 of 2024. This EMS is designed to minimize their negative impact on the environment, comply with applicable laws, regulations, and other environmentally oriented requirements, and continually improve in the above. It is a systematic approach to managing environmental aspects, ensure compliance with laws and regulations, and work towards sustainability goals. In line of this ISO14001, we have defined six environmental objectives that 

Social

We recognize the importance of supporting the communities in which we operate. This means fostering a diverse and inclusive workforce, and upholding ethical labor practices throughout our supply chain. By prioritizing the well-being of people, we strive to create lasting positive change in society. We ensure social responsibility throughout the supply-chain via our ethical code of conduct which is signed by MEG staff and by its suppliers. This ethical code of conduct is based on the following four principles:

• Zero tolerance for discrimination, intimidation and harassment
• Safe and hygienic working conditions
• Abolition of child labor
• Paying a living wage

Governance

Effective and sound governance in itself are an essential element of a sustainable business. It furthermore ensures that the sustainability policy and sustainability objectives are integrated into its operation. We do so in the following ways:

• Business integrity with freedom of employment and association
• All employees sign an anti-corruption declaration
• We have a whistleblower scheme embedded in our code of conduct
• Involving stakeholders in the chosen sustainability course
• Our suppliers sign a governmental policy that is aligned with MEG’s standards and principles

United Nations Global Compact

MEG is committed to the United Nations Global Compact, underscoring our dedication to sustainability and ethical business practices at a global scale. By aligning our operations and strategies with the ten universally accepted principles in the areas of human rights, labor, environment, and anti-corruption, we demonstrate our pledge to responsible business action. Through active participation in the Global Compact, MEG not only adheres to its high standards but also engages in collaborative projects that advance broader UN goals, including the Sustainable Development Goals that will be outlined below. 

Sustainable Development Goals

MEG has strategically chosen its Sustainable Development Goals (SDGs) by aligning its core business operations with global sustainability priorities as defined by the United Nations. The selection process involved an assessment of the company's impact on environmental, social, and economic factors, identifying areas where MEG can make the most significant contributions. This targeted approach ensures that MEG's efforts are not only relevant but also effective in promoting sustainable development within its sphere of influence.

Sustainable Development Goal 3: Good Health and Wellbeing

MEG is not just supplying pharmaceuticals and other healthcare products. We offer specific products to combat the epidemics of AIDS, tuberculosis and malaria and other communicable diseases. Directly related to the target of reducing the neonatal mortality rate, MEG led the Neonatal Intensive Care Unit (NICU) project in Ethiopia. Together with regular cooperation partners, UNICEF and the Ministry of Public Health in Ethiopia, the MEG is committed to reducing the infant mortality rate. How? By providing eighty hospitals in Ethiopia with medical devices and knowledge for the care of sick babies.

Sustainable Development Goal 8: Decent Work and Economic Growth

This objective fits seamlessly with the ethical code of conduct that is signed by both MEG staff and its suppliers. By guaranteeing good working conditions and good governance, we contribute to fair work and economic growth.

Sustainable Development Goal 12: Responsible Consumption and Production

The goal of increasing global resource efficiency is directly linked to our commitment to SDG 12. We aim to continuously reduce the material footprint. MEG recognizes that the packaging of relief supplies is an essential aspect of humanitarian aid delivery. However, in the most fragile and tense contexts, this often becomes an unintended waste stream. We therefore encourage our suppliers to reduce their material footprint by making efficient use of their packaging materials and by using sustainable packaging materials.

Sustainable Development Goal 13: Climate Action

MEG believes in a shared responsibility for climate action, as the effects of climate change have a global impact. We strive at reducing our greenhouse gas emissions, within and outside our operational boundaries. Within our operation boundaries, we strive for a reduction of scope 1 and 2 emissions, whereas scope 3 emissions involve value chain emissions. One way of reducing these emissions is by creating transparency in the carbon footprint of our logistical operation which can then be used as a starting point for offering sustainable solutions. 

Environmental objectives

1. Reduction of MEG’s carbon footprint
   • Reduction of carbon emissions by 5% compared to 2023 (Scope 1 & Scope 2 emissions)
   • Creating insight into the carbon footprint of our logistical operation (Scope 3) by implementing a visibility tool with carbon accounting option

2. Reducing paper consumption
   • Reducing the total amount of paper printed at MEG by 10% in comparison with 2023

3. Reducing waste production
   • Promotion of qualitative waste separation within our office facility

4. Promoting green procurement
   • Increasing the number of supplier that have signed MEG’s sustainability policy
   • Increasing the number of suppliers that adhere to ISO14001 standards

5. Compliance with environmental laws and regulation
   • Attending information sessions about the new European CSRD/ESRS regulations so that preparations can be made in a timely manner
   • Making an assessment of the impact of the legislative transition from the so called “Activities Decree” to the “Environmental Act”

6. Certification of our ISO14001 Environmental Management System

Implementing an environmental management system based on the PDCA cycle, with annual environmental targets for continuous reduction of our impact on the environment.