ENVIRONMENT

Tecan’s main business activities are the design and development of innovative instruments, instrument components and modules, software, reagents and consumables for research, diagnostics and medical use and the execution of global sales and service activities. For instruments, components and sub-modules, the largest source of revenue contribution, focus is on the final assembly, testing and packaging. In Tecan’s facilities these activities have a relatively low environmental impact as they are not energy intensive, do not generate a large amount of waste and do not require significant water use – most of Tecan’s water consumption is in the bathrooms and canteens. Nevertheless, Tecan aims to minimize any negative environmental impacts of its business activities and implement opportunities to have a positive environmental impact. Climate Impact and Circular Economy are material topics for Tecan. 

Although Tecan’s business activities are not energy- or emissions-intensive information about our environmental impact has been reported in our Annual Report since 2007 and data disclosed via CDP reporting since 2011. In 2019 Tecan set a target to reduce a defined portion of greenhouse gas emissions by one-third by 2022, and this target was reached. A commitment to tracking Tecan’s total global greenhouse gas emissions at least annually is included in Tecan’s Human Rights and Responsible Business Practices policy, which is available on tecan.com.

As the reports of the International Panel on Climate Change have made clear, rapid decarbonization would be needed to limit average global temperature increase to 1.5°C above pre-industrial levels. In January 2025, the European Union’s Copernicus Climate Change Service (C3S) reported that 2024 was the first year in which the global average temperature clearly exceeded 1.5°C above pre-industrial levels. Tecan committed to the Science Based Targets initiative (SBTi) and Business Ambition for 1.5°C in 2022, aiming to make our contribution to the global emissions reduction effort. At the end of 2023, Tecan’s science-based targets and emissions reduction plan were validated by the SBTi. In 2024, Tecan focused on building a data collection and management platform with the goal of tracking our scope 1 and 2 and most significant scope 3 emissions quarterly. This will enable interim targets to be set in support of our SBTs. Tecan also requests information about suppliers’ emissions reduction practices in the detailed supplier qualification process, and advises suppliers on emissions reduction possibilities.

At the same time, Tecan has increased purchase of renewable energy, and purchased 87% renewable electricity in 2024, up from 60% in 2023.

Collection and management of Tecan’s environmental, social impact and governance data was the focus of a Group-wide project within Tecan in 2024, building on a foundational project that concluded successfully at the end of 2023. With the support of external consultants, a blueprint was developed in 2023 to increase automation of the data collection and management process where needed, and to extend the scope of data collected. In 2024, this blueprint was implemented and the 2024 reporting cycle is the first "live test" of the new processes and platform. Learnings from this reporting cycle will be followed up on in 2025 as needed. A key goal is to be able to calculate certain emissions categories more frequently than annually, gaining insight throughout the year on the effectiveness of steps taken to reduce emissions and if appropriate, setting related interim targets in support of Tecan’s validated Science Based Targets. The project to build out the data management platform was led by colleagues in the Finance team, and the newly created role of ESG Data Controller within Group Controlling positions Tecan to follow best practice standards in ESG data management. 

In addition to strengthening data management, oversight is being increased with Tecan’s first external audit of key ESG data points. The results of this audit are included in this 2024 Sustainability Report. 

Tecan’s Männedorf headquarters was an early example of a "green building", built with environmental impact in mind. It has a "living roof" which naturally reduces building energy consumption, as well as rooftop solar panels that generate around 10% of the building’s electricity needs. LED lighting and automatic sunshades also reduce energy usage, and low-flow water systems ensure efficient water use. Charging stations powered by renewable energy are available free of charge for employees who have electric vehicles, and a subsidy for employees who commute using public transit also reduces overall environmental impact. For employees who need to travel between Tecan buildings or otherwise locally from Tecan’s headquarters, hybrid vehicles are available. Impact is also managed at the employee canteen, which serves meals made from seasonal, local ingredients, always with a vegetarian option, and consciously avoids generating food waste. In 2023 Tecan’s headquarters received ISO 14001 certification. Ensuring that the related best practices are shared among our sites around the world is a priority for Tecan’s Environment, Health and Safety Office. 

To reach Tecan’s emissions reduction goals, facilities are transitioning to electricity from renewable sources wherever feasible. This is complemented by the solar panels at our facilities in Männedorf and Nänikon, Switzerland, and Grödig, Austria. In 2025, additional photovoltaic systems will be put into operation at the ‘factory in the forest’ in Penang, Malaysia. Where renewable electricity cannot be sourced directly from the grid Tecan is purchasing Renewable Energy Certificates. Tecan purchased 87% renewable electricity in 2024, up from 60% in 2023. The resulting decrease in greenhouse gas emissions is shown in the Data section of this report. 

In 2025, Tecan plans to conduct energy audits at sites responsible for at least 50% of our total energy consumption. These audits will help us identify further opportunities for energy efficiency and reduction in emissions, ensuring we remain on track to meet our long-term sustainability goals.

Water scarcity is an increasing problem on every continent. In 2024, we completed Tecan’s first water risk assessment, utilizing the World Resources Institute’s geolocator tool to verify that we have no water-intense operations in water-stressed areas. We confirmed that Tecan has no water intense business operations (most consumption is in the bathrooms and canteens), there are no water risks to direct operations and all of our manufacturing site water comes directly from the municipal water supplies. No water is drawn by Tecan from local aquifers. Despite this low impact, Tecan seeks to improve water efficiency where possible, monitoring water withdrawals and water quality at each manufacturing site. We promote recycling and reusing water where possible and closely monitor the quality of the water we discharge. This approach guarantees regulatory compliance and provides a level of assurance that downstream ecosystems are protected. Tecan’s performance target relating to water is to: Monitor water consumption and ensure no unexplained or unacceptable increase.

Achieving zero waste to landfill is crucial for both environmental sustainability and economic efficiency. By diverting waste from landfills, we significantly reduce greenhouse gas emissions, particularly methane, which is a potent contributor to climate change. This practice also conserves natural resources by encouraging recycling and reuse, thereby minimizing the need for raw material extraction. Economically, zero waste initiatives can lead to cost savings through reduced waste disposal fees and the creation of new revenue streams from recycled materials. Moreover, effective waste management can foster innovation and responsibility, encouraging businesses and communities to develop sustainable practices that benefit both the planet and future generations.

Tecan is committed to this vision and has initiated a pilot program at our Penang, Malaysia site, aiming for this to become our first facility to achieve zero waste to landfill. This initiative represents a significant step forward in our sustainability journey, setting a benchmark for our other sites worldwide.

Tecan activities are also guided by our strict Product Environmental Compliance policy, and are reflected in Tecan’s Code of Conduct, both of which mandate that environmental legislative requirements are met and that employees work to minimize Tecan’s environmental impact, and both of which are publicly available. The Product Environmental Compliance policy and facilities management systems and ambitions reflect Tecan’s support of UN SDG 12.4, to “achieve the environmentally sound management of chemicals and all wastes throughout their life cycle…” and UN SDG 12.5, to “substantially reduce waste generation through prevention, reduction, recycling and reuse.”

The acquisition of Paramit Corporation and its affiliates in August 2021 brought an exceptionally green building into Tecan’s portfolio, the award-winning "Factory in the Forest." Consciously designed to connect the building’s occupants to nature, the factory optimizes use of indigenous plant life to create a unique workplace that also maximizes energy efficiency, water efficiency and use of natural light. With trees surrounding and even inside the building, the greenery provides protection from the sun, and roof gardens as well as a courtyard linking the office and production areas enable employees to directly access this environment. As the building’s architects have noted, “Forests, critical for both macro- and micro-climates, are also vital for our psychological well-being”, a concept further explored in a book about the building. Building technology includes an innovative chilled-water radiant floor cooling system that is twice as energy efficient as conventional air conditioning, and dimmable daylight-responsive LED lighting as well as individual task lighting, which complement the diffused natural light to ensure an evenly lit work environment. A louver canopy provides shade and reduces energy consumption, and rainwater is collected and used for landscape irrigation. The "Factory in the Forest" is certified to the ISO 14001 standard.

Tecan’s ISO 14001 certifications are shared on tecan.com.

Matching the building’s positive environmental impact features, in 2024 steps were taken to reduce waste onsite including the decision to remove all single-use plastic from the canteen, and to encourage colleagues to use reusable water bottles and carrier bags.

In 2020, Tecan completed a product carbon footprint of our flagship Fluent™ automation workstation and followed that by annually purchasing carbon credits to offset the emissions generated by production and shipping of the various models of the Fluent™. In 2021, the product carbon footprint of the Spark family of detection products was completed, and subsequently Tecan implemented an annual offset of production and shipping emissions. In 2024, a related amount of carbon credits has again been purchased, addressing slightly more emissions than it is estimated can be attributable to the products’ production and shipping. The correlation is not direct, and reflects the value Tecan places on climate mitigation projects, which also have a significant positive social impact as well as a beneficial environmental impact. The descriptions of the projects previously funded by Tecan can be found in our 2022 Annual Report, and the climate mitigation supported in 2024 is described here.

In 2024 Tecan completed its first climate scenarios risk analysis, with the assistance of external consultants. The results of this analysis are reported here, in accordance with the Swiss Ordinance on Climate Disclosures. In this Sustainability Report Tecan describes how climate impact has been identified as a material topic for Tecan, and how Tecan’s Board of Directors and Management Board assess and manage climate related risks and opportunities through their role in the governance of Tecan’s sustainability program. In 2024, preparing Tecan to more precisely manage its climate impact was included in the short-term variable pay compensation criteria of Tecan’s Management Board and all colleagues who have a variable pay component to their compensation. A robust data management process and platform supports further integration of climate scenarios analysis into business planning, and creates the possibility of implementing processes Tecan currently does not have, such as setting an internal price on carbon. 

In January 2025, the European Union’s Copernicus Climate Change Service (C3S) reported that 2024 was the first year in which the global average temperature clearly exceeded 1.5°C above pre-industrial levels. As global temperatures rise, the Earth becomes more likely to experience extreme climate events and prolonged periods of heat, rain, and drought. Thus, managing and mitigating these climate risks, as recommended by the Task Force on Climate-related Financial Disclosures (TCFD), is essential for long-term business resilience and sustainable growth. Climate change’s impacts stretches beyond those only attributed to weather related events, and the TCFD categorize such risks into: 

• Physical risks: Physical climate change impacts can disrupt operations and lead to significant social and economic impacts. They can be divided into chronic risks, which are longer-term shifts in climate patterns (e.g., a sustained increase in average temperature) or acute risks, which are short-lived extreme weather events, such as tropical cyclones. 
• Transition risks: Transition risks are risks arising from the introduction of public policies, technological changes, and the shifts in market demand and investor sentiment needed to move to a low-carbon economy. 

In 2023, Tecan began assessing climate resilience by conducting climate-scenario analysis to assess climate-related physical and transition risks and opportunities. This effort included conducting a scientific literature and policy literature review, benchmarking against peer organizations in the life sciences industry, and quantifying selected physical climate drivers using global climate models and transition scenarios developed by leading global institutions. The analysis has been discussed with relevant internal stakeholders in management, as well as day-to-day operations and risk managers to ensure the results are considered.

The analysis is rooted in the climate-scenarios derived by the Intergovernmental Panel on Climate Change (IPCC) Sixth Assessment Report. The scenario analysis is based on the two end-member global warming scenarios: i) low-emission scenario, an optimistic 1.5°C scenario that is aligned with the goals of the 2015 Paris Agreement and ii) high-emission scenario, the 3°C to 4°C scenario that is likely to occur if global operations continue in a similar fashion as they do today, without a concerted effort to decarbonize regular business practices. 

The physical risk modelling is based on scenarios from the IPCC and other leading climate modelling groups. The transition risk modelling uses scenarios from the Network for Greening the Financial System (NGFS). The transition scenarios from the NGFS are generated by coupling physical risk climate scenarios to transition models that assess impacts of different policy ambition, technology, and regional policy variation to derive economic and financial variables that can be used in this scenario analysis. 

In general, Tecan’s own operations are in scope of the analysis for both physical and transition risk quantification. For upstream and downstream operations, the first step was to qualitatively assess how these risks may impact Tecan’s business. To align with the SBTi targets that Tecan has set and that were validated in 2023, the analysis focuses on the medium-term for 2030 and long-term for 2050. These two different time horizons are compared to the present as a baseline in the scenario analysis summarized in this report.

A financial assessment of physical risks has been made, based on comparing Tecan’s maximum exposure under two distinct scenarios: Tecan’s present climate exposure, termed the baseline scenario, and the projected exposure until 2030 and 2050 under a 4.4°C scenario. This evaluation aims to quantify the highest potential climate risk exposure across Tecan’s sites against different climate hazards. It is assumed that the Company’s exposure in a 1.5°C scenario would align closely with the current baseline scenario, given the current rate of global warming. Therefore, the physical risk results focus on the 4.4°C high-emission scenario. Tecan is currently analyzing and evaluating the results of the assessment of exposure to climate related physical risk and associated financial impact. 

The impacts on Tecan’s production and storage warehouse sites were evaluated as part of the physical risk analysis. This assessment considers pseudo-worst-case events because no mitigation activities have been included in the modelling and it also does not consider any changes to the business plan. The physical risks will vary significantly across Tecan’s operations that span across the globe. Tecan is aware that when assessing climate risks, it’s crucial to consider both current risks and those that are expected to undergo significant changes in the future. Table 2 shows the geographical change in risk from today to 2050 for the eight risk drivers that were modelled. The chronic and acute climate risks that were evaluated are described in Table 3.

From the geographical assessment, the physical risks that most impact Tecan’s own operations are heavy precipitation, river flooding, and extreme heat. The regional assessment highlights geographies that are likely to face climate risks in the future. According to the assessment, Asia and the US are susceptible to multiple risks, a few of which are expected to be significantly worse in 2050 compared to today. The model predicts a higher risk of tropical cyclones in Asia and higher extreme heat events in the US and Australia with climate change in 2050. Analysing changes in exposure can provide insights into which regions may be most vulnerable to future changes and helps establishing a priority list for taking action. A good example is the sites in California, which are exposed to several physical risks with an increasing high-risk ratio. In Table 3, a more detailed summary including Tecan’s mitigation strategies is provided for each climate risk driver. 

The risks and opportunities associated with transitioning to a lower-carbon economy are driven by coordinated global efforts to achieve net zero emissions by 2050, aligning with the Paris Agreement goals and pursuing significant decarbonization. This entails a swift transition to renewable energy sources, electrification, and stringent regulations to curb fossil fuel extraction and usage across various sectors and economies. Carbon pricing mechanisms are regarded as crucial drivers in this endeavor. Addressing mitigation and adaptation requirements to meet Tecan’s SBTi goals may result in varied levels of financial impact, presenting both transition risks and opportunities. 

Tecan has identified external factors that could lead to risks or opportunities in relation to the global transition. The financial assessment of transition risks involves comparing the Company’s maximum exposure under two distinct business paths: one where we continue with business as usual (BAU), with unabated emissions and no climate change mitigation efforts, and another where operations align with our SBTi trajectories. These business paths have been evaluated against future projections outlined by the NGFS. NGFS envisions several global economic trajectories including one where low-emission objectives are met, consistent with the Paris Agreement, and others where these objectives are not met, leading to significant global warming. In the latter, high-emission scenario, physical risks outweigh transition risks due to limited policy, technological, and legal frameworks driving change. Consequently, further analysis has focused on the low-emission scenario, where transition risks are of greater concern. 

For the qualitative assessment, a long list of transition risks and opportunities that may impact Tecan’s business are provided in Table 4 and 5, respectively. In the case of the risks, possible mitigation actions are added. 

From the long list of transition risks that may impact Tecan, an additional assessment of financial impact was conducted for: payments for GHG emissions, increase in transportation costs, rises in raw material costs, and increase in electricity prices. Payments for GHG emissions were evaluated by assessing different carbon prices on scope 1 and 2 emissions. Increase in transportation cost and rises in raw material costs were assessed indirectly by assessing different carbon prices on scope 3.1 (purchased goods) and Scope 3 Transport emissions to understand how potential carbon taxes may affect Tecan’s supply chain. Two Tecan business paths were modelled under the different NGFS scenarios, looking at the risks associated with carbon taxes and energy prices in 2030 and 2050 for different Paris Agreement aligned NGFS scenarios (the NGFS "Below 2 °C" scenario and ‘Net Zero 2050’ scenario). These scenarios assume that global warming is limited through stringent climate policies and innovation, thus leading to many transition risks if businesses are not adopting net zero business practices. The total transition costs, the sum and splits of carbon costs and energy costs for the two business paths, showed that Tecan achieving its SBTi commitments results in much lower transition costs compared to the BAU business path. 

Tecan is further analyzing and evaluating the results of the assessment of exposure to climate related transition risk and associated financial impact. Commitment to Tecan’s science based emissions reductions targets is unchanged, and the work done in 2024 to build out a data management platform for data including emissions data will strengthen Tecan’s ability to manage the risks and opportunities related to the transition to a lower-carbon economy. 

In the physical risk and transition risk scenario analyses, the descriptions of how these climate related risks and opportunities were identified has been stated. The process of identifying Climate Impact as a material topic for Tecan is described in the Sustainability Focus Areas section of this report. The Climate Impact and Circular Economy sections of this report describe some of the steps Tecan is already taking to transition to a lower carbon economy and ensure our products are future fit in a world impacted by global warming. In 2024, customer interest in these topics increased noticeably, opening the way for potential future collaborations with those customers who are also working to transition to a low-carbon economy. For example, one customer is pursuing lower emissions shipping of products, and Tecan is delighted to be able to support in meeting this aim. Tecan’s Sustainability Director participates in customer meetings and sustainability networks, ensuring that Tecan’s ambitions regarding climate impact are understood and opportunities to work together in this regard can be pursued. 

Tecan’s global risk management process is described in the Governance section of this report and includes annual assessment of the likelihood of the climate related physical risks and transition risks detailed in the tables 3 and 4. 

In 2025 it is anticipated that the data management platform implemented in 2024 will become more fully integrated into Tecan’s business practices with the goal that in future scenarios analyses can be made, for example of the climate impact of various business decisions. This will enable Tecan to better include climate impact in the range of factors that feed into business decisions, and to make informed choices about pursuing lower emissions options where appropriate. 

Tecan’s primary metric relating to climate risk and opportunity is the Company’s total greenhouse gas emissions, which are calculated annually in accordance with the Greenhouse Gas Protocol. In addition, Tecan tracks the percentage of purchased electricity from renewable sources and energy use at manufacturing sites. In 2025, energy audits will be carried out to enable energy saving measures to be implemented and related targets to be set. 

As described in this report and previous annual reports, Tecan has near- and long-term scope 1, 2 and 3 absolute greenhouse gas emissions reduction targets that have been validated by the Science Based Targets initiative. In 2025, Tecan will work towards setting interim targets and calculating emissions from key emissions categories more frequently than annually. 

Tecan engages with peers to share knowledge around managing climate impact, particularly through the Swiss MedTech industry Association. Engagement with suppliers includes requesting their carbon emissions reduction plan and providing advice and guidance where necessary for suppliers just beginning their carbon emissions reduction efforts; the Responsible Sourcing program carries out this work and tracks progress in this area. Employee engagement has included a detailed communications campaign when Tecan committed to the Science Based Targets initiative, with resources maintained on Tecan’s internal communications platform including an interactive game providing colleagues with the chance to develop their own path to net zero greenhouse gas emissions. When interim emissions reduction targets are set and energy reduction measures are implemented, additional communications and materials will be shared throughout Tecan.* 

A circular economic model is one in which the creation of waste is avoided, in contrast to the linear “take-make-dispose” pattern of resource use seen more often today. Circular economy principles can be built into the design of products, as well as considered in their materials. The transition to renewable energy and materials underpins the approach. The need to transition to a circular economy is clear: every year, humanity uses more resources than the planet can regenerate, threatening the very ecosystems that enable life to flourish. 

Tecan’s main business activities are the design and development of innovative instruments, instrument components and modules, software, reagents and consumables for research, diagnostics and medical use and the execution of global sales and service activities. For instruments and components, focus is on final assembly, testing and packaging. The materials sourced for this are a large contributor to Tecan’s scope 3 emissions; typical materials include steel, aluminum, plastic, small amounts of tin, and forestry products for packaging. In 2024, Tecan initiated a project to identify the % of recycled and recyclable content in the materials we source from our suppliers. This data, in combination with the information gathered in our detailed supplier qualification process, will enable Tecan to make informed decisions about the impact of materials purchased and to work towards optimizing the positive impact of the products we offer. 

Many of Tecan’s products are long-lasting, designed to be used for many years and this long product lifespan is supported by Tecan’s service offerings. Nonetheless, there are opportunities to reduce Tecan’s use of resources, including through eco-design.

Ecodesign provides Tecan with further opportunities to reduce its environmental impact. Tecan’s Fluent™ Automation Workstation incorporates a number of ecodesign features, including stand-by mode, which saves power when the system is not in use but allows it to be activated immediately, and "Zero-G", which reduces power to the motors when the system is on pause or within a run whenever an arm is not in use. The Fluent™ is an unusually quiet workstation, reflecting its efficient design: the field-oriented control protocol increases the efficiency of the motors by up to 80%. Waste segregation features allow for the separation and so optimal disposal of contaminated waste (plates and tips) versus clean waste (tip wafers and boxes), and efficient fixed tip washing protocols help to minimize the use of disposable tips.

Considering energy efficiency, materials, waste, and the opportunity to have a positive environmental impact is part of Tecan’s structured research and development process, with a dedicated section of Tecan’s "milestones" R&D review process focused on alignment with Tecan’s sustainability strategy. In 2024, a checklist was added to this process and presented to R&D colleagues along with industry best practices in ecodesign including close collaboration with procurement colleagues and adopting a total cost of ownership approach when considering future products and materials. Through current and future activities, Tecan works to support UN SDG 12.2, “move towards a circular business model.”