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Longstanding partners, Mölnlycke Health Care and Scan Global Logistics (SGL), have entered an agreement for the purchase and deployment of ocean biofuel covering trade lanes from Asia to Europe to further reduce carbon emissions. This decision supports the global MedTech company Mölnlycke's commitment to reducing greenhouse gas (GHG) emissions and reaching Net Zero by 2050. For over 15 years, Scan Global Logistics have had a close global partnership with Mölnlycke, marked by a shared focus on supply chain optimisation and mitigating greenhouse gas (GHG) emissions associated with maritime transportation. In recent years, this collaboration has seen a heightened emphasis on sustainability initiatives, culminating in exploring actions to reduce environmental impact, which resulted in the company now buying ocean biofuel. Eric de Kesel, COO & EVP Sustainability, Mölnlycke, elaborates on this decision: “We are committed to driving our sustainability efforts forward and firmly believe we can reduce emissions while maintaining the quality of our business operations. The partnership with Scan Global Logistics to purchase a significant amount of biofuel for our ocean shipments is important and beneficial from a business, economic, and environmental standpoint, particularly for our Asia-Europe routes.” Striking a balance: Sustainable and economical solutions in logistics Both companies recognise the importance of offering tangible solutions to address climate change-related  concerns, anchoring their collaboration in a mutual commitment to push for positive change. Kim Fischer, Corporate EVP, Global Sales & Corporate Strategic Accounts in Scan Global Logistics, reinforces this commitment: “Mölnlycke is very important to us, and our relationship dates back over a decade. This initiative underlines the dynamic and innovative approach that both companies are investing in a successful business collaboration. Further sustainability initiatives have already been discussed with Mölnlycke, and we value such entrepreneurship, which aligns with our business approach.” Marc Bach Spangsberg Sørensen, Global Head of Program Management at Scan Global Logistics, continues: ”We are dedicated to expanding the portfolio of relevant products offered to our customers in an ever-changing world. Through strategic collaborations, we promote the agenda for alternative fuel types, contributing to the long-term transition to low-emisssion transport solutions.” Central to this collaboration is the ability to provide customers like Mölnlycke with accessible, measurable, and ready-for-use products that facilitate GHG emission reduction. By leveraging biofuel for ocean freight, SGL aim to deliver environmental and economic benefits through cost-effective pricing structures. Partnerhips as drivers for positive change Martin Andersen, Global Head of Sustainability & ESG at Scan Global Logistics, is excited about the collective courage among companies which will support the demand for ocean biofuel and actual emission reductions: ”It is paramount and uplifting to see responsible companies drive their decarbonisation journey. It is a challenge, but we all must contribute and support each other with collaboration across industries and supply chains, which is essential to making progress. The window for meaningful change is closing; now is the time to drive collective courage for a low-carbon future.” In conclusion, this partnership for ocean biofuel represents a positive step towards low-carbon logistics. While navigating the complexities of modern logistics, collaborations like these serve as examples of optimism and pave the way towards a more sustainable future for the industry.  

Today, Mölnlycke Health Care, a world leading MedTech company, announces that its near-term GHG emission reduction targets submitted to the SBTi have been validated and deemed to be compliant with all applicable requirements. Specifically, Mölnlycke has committed to reduce absolute scope 1 and 2 GHG emissions by 50% by 2030, from a 2021 base year, to increase active annual sourcing of renewable electricity from 23% in 2021 to 100% by 2024, and to continue sourcing of 100% renewable electricity through 2030. Furthermore, the company committed to reducing absolute scope 3 GHG emissions from purchased goods and services, fuel and energy related activities, upstream transportation and distribution and waste generated in operations by 20% by 2028, from a 2021 base year. Finally, Mölnlycke committed that 63% of its suppliers by emissions covering purchased goods and services, capital goods, and upstream transportation and distribution, will have set science-based targets by 2028. “SBTi validation is a key milestone in our long-term strategy to help decarbonise the healthcare sector” said Zlatko Rihter, Chief Executive Officer, Mölnlycke Health Care. “We are committed to reach Net Zero by 2050 at the latest, and are accelerating the process of minimising both the direct and indirect impact of our operations on the planet.” Mölnlycke stands well poised for reaching the targets through a series of impact initiatives: For scope 1 and scope 2 targets concerning our own manufacturing facilities and headquarters, Mölnlycke’s implementation of a renewable electricity roadmap is well underway and will be achieved through a combination of virtual Power Purchase Agreements, renewable energy certificates (RECs) and investments in higher additionality energy sources, e.g. photovoltaic systems. For scope 3 and the supplier engagement target, Mölnlycke has already initiated activities under the Sustainable Procurement framework aimed at increasing collaboration with suppliers to bring innovation in raw materials and improved transportation routes that are needed to transition to a low-carbon economy. Mölnlycke are ensuring a defined set of suppliers commit to reducing emissions through the SBTi. The official information on Mölnlycke’s commitment can be found here. About SBTi The Science Based Targets Initiative (SBTi) is a global partnership made up of leading climate organisations, including the Carbon Disclosure Project, the United Nations Global Compact, World Resources Institute (WRI) and the World Wide Fund for Nature (WWF). The SBTi defines and promotes best practice in emissions reductions and Net-zero targets in line with science. It provides technical assistance and expert resources to companies that set science-based targets, to ensure their alignment with the Paris Agreement, to limit global warming to 1.5C.

The bond was more than five times oversubscribed with an orderbook of over EUR 2,700M at its peak. There was strong and widespread demand from leading investors in Germany, Austria and Switzerland 32%, UK & Ireland 28%, Nordics 18%, France 12% and Other 10%. Asset Managers represented 87% of investors, followed by Insurance and Pension Funds with 9% and Banks with 4%. The proceeds will be used to finance a Tender Offer of Mölnlycke’s outstanding EUR 500M notes maturing in 2025 as well as for general corporate purposes. The bond further extends the duration of Mölnlycke’s well-spread debt maturity profile. The bond will be listed on the Euro MTF market of the Luxembourg Stock Exchange. BNP Paribas, ING, JP Morgan and SEB acted as joint bookrunners for the transaction.