Sustainability is integrated in Oriola's strategy and the company has defined long-term sustainability goals for its three sustainability themes: society, people and planet. In line with the purpose ‘Health for life’, Oriola is committed to building a healthier tomorrow. Oriola’s business creates value to society and the entire healthcare chain. Minimising its environmental impact is a high priority for the company. Oriola is committed to United Nations Global Compact principles for responsible business. Oriola's sustainability approach provides a solid foundation to create long-term value for company's shareholders.
Oriola reports sustainability information compliant with Global Reporting Initiative (GRI) standards for sustainability reporting. The environmental data in Oriola’s GRI supplement has been assured by a third party (limited assurance). Additionally, Oriola reports sustainability key themes according to the Finnish Accounting Act in the Board of Directors' report.
Oriola’s actions towards its ambitious sustainability goals have been recognised externally in the following ESG indices:
ISS ESG Corporate Rating
In 2022, Oriola achieved Prime C+ (C in previous rating) status by the ISS ESG Corporate Rating. Oriola was among the highest decile in its sector, excelling in especially society and product responsibility and environmental management. The ISS ESG Corporate Rating analyses company management of ESG issues based on up to 100 rating criteria. The Prime status is awarded to companies with an ESG performance above the sector-specific Prime threshold, which means that they fulfil ambitious absolute performance requirements.
MSCI ESG Rating
In 2022, Oriola renewed its leader rating of AAA (on a scale of AAA-CCC) in the MSCI ESG Ratings assessment. MSCI ESG Ratings measure companies according to exposure to industry-specific environmental, social and governance (ESG) risks and the ability to manage those risks relative to peers.
OMX Sustainability Finland Index
Oriola is included in the OMX Sustainability Finland Index of Nasdaq Helsinki. The sustainability indexes comprise the leading companies in terms of sustainability and are selected based on how well they meet the criteria for ESG issues.
Climate Disclosure Project (CDP)
In 2022, Oriola received recognition for its environmental work by achieving CDP’s best leadership level with score A- (B in 2021, on a scale of A-D). Oriola's scoring exceeded average scoring in the company's benchmark group. Oriola has been reporting Climate Disclosure Project’s (CDP) climate change programme annually since 2017. CDP is a non-profit organisation that runs the global disclosure system for investors, companies, cities, states and regions to manage their environmental impacts.
In 2021, Oriola achieved the silver medal in the EcoVadis Sustainability rating. EcoVadis assesses companies’ sustainability performance in the areas of environment, labour and human rights, ethics, and sustainable procurement. Oriola’s rating placed it among the top 15% performing companies worldwide.
ESG risk management
Oriola assesses ESG risks as part of the group risk management process. The most significant sustainability risks are identified and assessed as a part of the annual risk management process facilitated by Oriola’s risk management team. The risk management team monitors the level of risks and ensures that the risks are mitigated appropriately by Oriola’s business areas and shared functions.
Transition risks related to climate change, such as changes in fossil fuel pricing or stricter environmental regulation causing increased operational expenses, are identified in the process. Risks are closely monitored and mitigated by open discussion with customers and partners as well as with decision makers. Oriola has also followed closely the increasing demand of consumers for ethical, transparent and environmentally sustainable products and services. Risk related to anti-bribery and corruption as well as information security are recognised in the process. People related risks such as human rights violations in own operations and/or supply chain as well as health and safety risks are highlighted, and mitigation activities assessed along with the Code of Conduct process.
Oriola responds to these challenges and sees business opportunities in systematic development of environmental work in collaboration with customers, partners and decision-makers. Oriola follows the development of environmental legislation. Commitment to reduce CO2 emissions is one of the selection criteria for Oriola’s transport partners. For example, in Sweden the share of renewable fuels in Oriola’s transport was approximately 40% in 2021. Oriola evaluates product sustainability in its assortment decisions and develops its own products to meet the increasing demands of consumers.