Medtronic Sets ESG Goals Including Carbon Neutrality, Linking Inclusion & Diversity to Compensation
Medical device company Medtronic announced a series of sustainability commitments, including a target to reach carbon neutrality in its own operations by 2030, along with inclusion, diversity, and equity initiatives. The commitments were made along with the release of the company’s 2020 Integrated Performance Report.
Medtronic stated that it ultimately aims to cut the company’s operational carbon footprint by 100%. As part of the company’s path to carbon neutrality in Scope 1 and 2 emissions, Medtronic has also introduced an interim goal to reduce greenhouse gas (GHG) emissions by 50% by FY25. The company also stated that it will increase use of renewable and alternative energy by partnering in virtual power purchase agreements (VPPAs) and investing in renewable energy credits (RECs) and carbon offsets. According to Medtronic, achieving its 2030 goal would reduce carbon emissions by an amount that is approximately equal to how much would be generated by 80,000 U.S. homes over the same time period.
Geoff Martha, Medtronic CEO, said:
“We have a responsibility to take immediate action to create a sustainable future for our business, our communities, and our planet. Becoming carbon neutral by FY30 is one way we are reducing our environmental footprint. We must focus on improving the health of our global society, as we increase the sustainability of our business.”
Medtronic has also announced a series of inclusion, diversity, and equity initiatives for FY21 and FY22, including the establishment of a new governance framework for inclusion and diversity where executive leadership will be directly responsible for its success. Medtronic stated that it will create standards to measure the company’s long-term progress on these issues, which will be reported and overseen by the Medtronic Board, and linked to compensation and advancement opportunities for all people managers. In addition, the company will expand employee training to address unconscious bias and make ally-ship the expectation for all.
Sally Saba, M.D., Medtronic Chief Inclusion and Diversity Officer, said:
“We aspire to have a workforce that is as diverse as the communities in which we live and serve, where we have opportunity parity, a culture of belonging, and measurable impact in our communities. As the global leader in healthcare technology, we have an opportunity to set a global example for inclusion, diversity, and equity. We will continue to act with urgency and conviction to transform our inclusion and diversity promise into reality.”