SMITH & NEPHEW PLC.
SN.LSE | Manufacture of medical and dental instruments and supplies
Smith & Nephew PLC is a global medical technology company. It designs, develops, and markets a broad range of innovative products and services, particularly in the areas of orthopaedics, advanced wound management, sports medicine, and ENT (Ear, Nose, and Throat). Its orthopaedics portfolio includes ...Show More
Better Health for All
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Smith & Nephew's core business as a medical technology company, focusing on orthopaedics, advanced wound management, sports medicine, and ENT, means its products are designed to improve patient outcomes and treat conditions like chronic wounds. No evidence suggests the company generates revenue from products with negative health outcomes. The company has reduced Scope 1 and 2 emissions by 63% from a 2019 baseline
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and diverts 95% of waste from landfill
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. Smith & Nephew supports healthcare professional development through medical education training, receiving Centre Accreditation from RCSEng
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, and expands its medical education curriculum with simulation technologies accessible worldwide
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. The company's products do not have addiction potential, and it is not a food company.
Fair Money & Economic Opportunity
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Smith & Nephew PLC is a medical technology company, not a financial institution. The ethical value 'Fair Money & Economic Opportunity' and its associated KPIs are designed to assess companies involved in lending, insuring, moving, or storing money, and their impact on financial inclusion and wealth building through financial products and services. As Smith & Nephew does not offer such services or products to consumers, all KPIs within this rubric are not applicable to its core business model.
Fair Pay & Worker Respect
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Smith & Nephew reported a Total Incident Rate (TIR) of 0.12 and a Lost Time Injury Frequency Rate (LTIFR) of 0.05 in 2024, demonstrating strong health and safety commitments
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. The CEO pay ratio to the median employee was 72:1 in 2024
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, with the CEO's total compensation at £3,654,391, reflecting a 32.57% decrease from the previous year
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. However, a pay increase for CEO Deepak Nath was approved in May 2024
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, potentially raising his compensation to $11.8 million
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. In 2024, the mean gender pay gap was 14%
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. The company has been accredited as a Living Wage employer
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, ensuring employees in its operating regions receive wages meeting or exceeding local living wage standards
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. Smith & Nephew asserts it does not use forced or child labor
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. In 2022, the company faced a lawsuit alleging a hostile work environment and discrimination based on national origin, with the court allowing claims to proceed
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.
Fair Trade & Ethical Sourcing
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Smith & Nephew conducts annual modern slavery risk screenings and audits for all its Tier 1 suppliers
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, with new suppliers screened quarterly
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or within six months of onboarding
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. The company reported no incidents of forced or child labor for 2024
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. It explicitly prohibits forced, compulsory, or child labor in its operations and supply chains
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, conducting due diligence and risk assessments for all new suppliers, particularly those in high-risk countries or industries
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. A robust whistleblowing procedure is also in place across all jurisdictions
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.
Honest & Fair Business
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Smith & Nephew has a whistleblower hotline system, but in 2023, faced allegations of retaliating against a whistleblower who raised concerns about TAA violations, claiming termination for his actions.
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The company also settled a whistleblower lawsuit for $8.3 million in 2014 related to Trade Agreements Act violations.
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Following past FCPA violations, Smith & Nephew implemented a Global Compliance Programme with anti-bribery and corruption policies.
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In 2012, the company paid over $22 million to settle allegations of a bribery scheme in Greece, which included a $16.8 million criminal fine and $5.4 million disgorgement of profits for illicit payments made from 1998 to 2008.
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Critics highlight a lack of transparency in labor practices, with general commitments but an absence of metrics on safety, wages, and employee engagement.
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The company has incurred a total of $95,334,010 in penalties since 2000.
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Kind to Animals
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Smith & Nephew PLC has a comprehensive animal testing policy, conducting animal testing only when mandated by government regulations.
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The company prioritizes non-animal evaluation methods and uses known safe ingredients that require no further testing.
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It adheres to the 3Rs (Replacement, Reduction, and Refinement) in its pre-clinical testing approach, ensuring alternatives are standard in product development and safety dossiers.
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The company also supports groups identifying non-animal testing methods.
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It collaborates with AAALAC-accredited organizations.
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No War, No Weapons
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Smith & Nephew, a medical technology company, has no revenue from arms or defense contracts and no exposure to controversial weapons. It also has no defense assets to divest. The company publishes an annual Conflict Minerals Report, with the most recent for the year ending December 31, 2023, which functions as a full public war-risk audit.
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This report details an annual review of its partners (suppliers and smelters) for conflict-related risks, identifying 43 smelters sourcing from conflict-affected countries and conducting risk mitigation on 7 of these.
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Mitigation plans include engaging suppliers to promote RMAP participation or consider removing non-compliant smelters.
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The company also engages in medical R&D collaborations with the U.S. Army Institute of Surgical Research
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and the U.S. Department of Defense
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for technologies aimed at improving combat casualty care and treating battlefield injuries.
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Planet-Friendly Business
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Smith & Nephew has diverted 95% of its manufacturing waste from landfill.
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The company sources over 40% of its total electricity usage from renewable wind energy.
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Solar photovoltaic panels installed at manufacturing sites in Malaysia and China began generating renewable energy in early 2023
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, contributing to a reduction of over 2,100 tonnes of CO2 equivalent in 2024.
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The company has set targets to achieve net zero Scope 1 and 2 emissions by 2040 and Scope 3 by 2045
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, supported by an interim goal to reduce Scope 1 and 2 emissions by 70% from a 2019 baseline by 2025.
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As of 2024, Scope 1 and 2 emissions have already been reduced by 63% from 2019 levels.
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Packaging optimization for ALLEVYN Foam Dressings has prevented 193 tonnes of CO2 emissions and saved 3.8 million square meters of material annually.
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Respect for Cultures & Communities
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No cultural appropriation incidents have been reported for the company.
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Similarly, there have been no reported disruptions to cultural or heritage sites, which aligns with the company's medical technology business model.
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Safe & Smart Tech
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No specific, quantifiable evidence was provided in the articles to assess Smith & Nephew PLC against the defined KPIs for Safe & Smart Tech. While the company mentions implementing a comprehensive cybersecurity program
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, multi-factor authentication
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, regular penetration testing
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, and security training initiatives
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, the articles do not provide the necessary details such as percentages, frequencies, or outcomes required by the rubric's quantitative thresholds. Similarly, statements about a commitment to ethical AI integration and transparency through data benchmarking
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lack the specific information on governance, audit practices, or explainability needed for scoring.
Zero Waste & Sustainable Products
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In 2024, Smith & Nephew achieved a 95% waste diversion rate from landfill across its manufacturing sites.
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The company's packaging systems incorporate recyclable components for 78% of its products.
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Smith & Nephew has set targets to achieve zero waste to landfill by 2025 for its Memphis and Malaysia facilities, and by 2030 for all strategic facilities.
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Packaging optimization initiatives, including 'Less Waste, More Care', have resulted in a reduction of over 20% in packaging size for ALLEVYN Dressings, saving 3.8 million square meters of packaging material annually.
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Additionally, sustainability reviews are integrated into new product development, focusing on recyclability and environmental impact.
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