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Sustainability

By pursuing sustainable corporate practices, Tecan is looking to secure the long-term expansion and prosperity of the Company for the benefit of all interested parties. Tecan sees sustainable corporate practices as more than just a series of individual measures. Instead, it shapes all corporate processes and unites economic, regulatory, ecological and social aspects. Today, this holistic approach is often structured in the three dimensions – Environmental, Social and Governance, or short ESG. Sustainability in this context is a mindset that must be deeply embedded in the business, its structures and procedures – in other words, in the corporate culture. This is the case at Tecan.

Tecan’s Vision and Purpose

Tecan is a leading global provider of automated laboratory instruments and solutions. The company’s systems, components, consumables and reagents help people working in clinical diagnostics, basic and translational research and drug discovery bring their science to life. Tecan hereby has a unique position to bridge from research to diagnostic settings.

 

Vision

Through its vision “Every lab. Every day. Empowered.”, Tecan aims to maintain a global presence with outstanding technologies, products and support. The Company wants to actively shape the future of automated workflows in life sciences and clinical diagnostics by facilitating key innovations and empowering those involved to achieve.

 

Purpose
Understand and fight disease

Accelerate discovery of disease mechanisms and development of novel treatments

Further impact

Drive translation of research insights into compliant clinical solutions at scale

 

Broaden access

Provide labs globally with efficient and effective diagnostic solutions

 

PRODUCT RANGE AND COMPLIANCE WITH THE SUSTAINABILITY GOALS OF THE UNITED NATIONS

In September 2015, the United Nations (UN) adopted the 2030 Agenda for Sustainable Development at a sustainability summit convened as a meeting of the General Assembly. The agenda’s 17 Sustainable Development Goals (SDGs) target fundamental improvements in the living standards of people alive today as well as of future generations. They also comprise objectives aimed at protecting Planet Earth.

 

Tecan not only supports the Sustainable Development Goals, but the Company’s activities and products allow customers to have a direct beneficial impact to help reach these sustainability goals. Basically all the Group’s sales are generated in areas that are defined in the individual SDGs. 

 

Tecan develops and sells flexible automation solutions that are deployed in a wide area of applications, from drug discovery to diagnostics to various applied markets. The individual end markets and areas of application as well as the fundamental trends and the Company's strategic orientation are described in more detail in the "Markets and Strategy" section (p. 20).

 

Major Contributions to SDGs

With over 90% of sales, Tecan’s products, business strategy, and activities make an essential contribution to SDG 3, which aims to promote good health and well-being for people of all ages. The majority of end-users come from the diagnostics market, accounting for around 60% of Tecan's total sales. In the various defined sub-goals of SDG 3, Tecan supports both research applications and processes in routine laboratories and helps researchers to discover novel medicines.

In 2020, Tecan's contribution to the SDG 3 was more visible than probably ever before. The company’s products have been instrumental in the global fight against the coronavirus pandemic, particularly in the area of automated PCR testing. Studies and models have now shown that COVID-19 tests play a key role in reducing the rate of reproduction of the virus and thus in containing its spread. As a result, there are fewer hospitalizations and ultimately fewer deaths.

 

Contributions to other SDGs

The use of Tecan products also promotes other UN SDGs in a wide variety of applications. In some cases, these are pioneering efforts in exciting fields of research, while other application areas are already important pillars of established commercial use. This diverse applicability of the products and the deep roots in research also distinguish Tecan. The annual contribution of these applications is generally in the single-digit percentage range of total sales. 

 

Examples of how Tecan products can be used include the following

 

Several customers of Tecan in the area of crop sciences are focused on increasing crop yields, protecting agricultural ecosystems from the effects of climate change, and developing new plant varieties that require less water and chemicals to grow and thrive. Using the information gleaned for example from genomics research, researchers are able to select for and introduce genes, for example, to promote disease or drought resistance or help plants adapt to high salinity soil.

Several research activities supported by Tecan products promote SDG 6. For example, microbiologists at Giessen University in Germany are using a Tecan microplate reader to look at the potential of engineered metal nanoparticles for treating water, inhibiting the growth of bacteria in drinking water at the point of use, and eradicating pharmaceuticals and other micropollutants from waste water. In collaboration with the consultancy firm ÖKOnsult, researchers at Karlsruhe Institute of Technology in Germany are using Tecan technology to investigate the effects of food additives and pharmaceuticals on aquatic ecosystems.

Several research projects supported by Tecan products promote SDG 14. For example, Tecan technology plays a key role in tracking hatchery-reared fish used to boost the natural Pacific Chinook and Coho salmon populations. With a remit to monitor the salmon stocks, the molecular genetics team at the Pacific Biological Station in Nanaimo, British Columbia, Canada built a database containing the genetic fingerprints for each hatchery brood stock. The genetic tag of individual fish caught in the wild can now be used to search the database and find the fish’s hatchery and brood.

 

Bees are some of the most important crop pollinators and therefore they play a crucial role regarding biodiversity. Using Tecan reagents for next-generation sequencing, researchers at the Texas A&M University have studied which genes may be involved in the honey bee queen mating health. Such research can help to understand the impact of environmental factors and ultimately can help to protect the bee population.

 

In efforts supporting the UN SDG 3, life science research sometimes also involves technologies that form the basis of controversial discussions in parts of society. In the search of novel therapies, for example to treat a number of neuromuscular diseases, some researchers use stem cells that can differentiate into other types of cells. Many researchers are doing differentiation of induced pluripotent stem cells (iPSCs) generated directly from adult cells, a technology not disputed from an ethical perspective. These cell lines are for example used for the monitoring of tissue-specific toxicity and a tool to develop cell models that mimic more closely the human body. As these model systems are more scalable and reproducible, they also help to reduce the traditional use of animal models.

 

Some researchers however also use embryonic stem cells that were for example excluded as part of preimplantation genetic screening. Tecan’s products are used in laboratories around the world for a variety of applications in life science research and diagnostics. Although Tecan instruments are not specifically designed for research using embryonic stem cells, human fetal tissue or cell lines, customers could adapt and use them for such purposes, e.g. in pre-clinical predictive toxicity testing to discover novel drugs. However, Tecan estimates that overall only a very small number of customers could possibly use its instruments for such applications. Tecan itself does not perform or has not performed any own research nor has it contracted out such research using embryonic stem cells, human fetal tissue or cell lines. Tecan also does not participate in, or knowingly fund, any external studies that use embryonic stem cells, fetal tissue or cell lines.

 

Contributions to the UN SDGs that go beyond products

Also beyond its products, Tecan conducts business in a responsible way and thereby also positively influences various UN SDGs through sourcing, production and other areas of operations. The impact of Tecan’s CO2 offsetting and other activities are described in the “Environment” section of this report. Contributions to e.g. SDGs 4, 5, 8 and 16 are discussed in the “Employees” section.

 

Sometimes, the little noticed areas make an important contribution towards a company’s overall sustainability too. At the end, they stand for the general approach and mindset a company has towards sustainability. For example, the sustainability program implemented in the Tecan staff restaurant, which protects the climate and promotes animal welfare contributes to the UN sustainability goals 2, 3, 12, 13, 14, 15 and 17.

CLIENT FOCUS

For Tecan, client focus is the most important guiding principle and the basis for a sustainably successful business model. Tecan is synonymous with innovation and a high level of reliability. Every day around the world, Tecan products are used in life science labs, as well as in daily operations in diagnostic labs that carry out investigations that are critical for human lives. Tecan’s clients include pharmaceutical and biotechnology companies, university research departments, forensic and diagnostic laboratories as well as in-vitro diagnostic companies served through the Partnering Business.

 

Tecan’s central customer promise is “Always There For You” – all of the Company’s activities are geared toward its customers. This promise is put into practice in an exemplary manner by numerous Tecan employees across the world in their daily dealings with customers and colleagues. To measure whether the customer promise is also met at company level beyond individual examples, Tecan regularly carries out comprehensive, international customer surveys. In these major surveys, existing customers who have bought Tecan products in the past few years are asked about their satisfaction levels and other aspects of the collaboration in the different business areas and regions. The surveys show that the vast majority of customers are satisfied with Tecan’s products and services, with the majority describing themselves as “very satisfied” or even “completely satisfied”. A large proportion of customers would also recommend Tecan to someone else – both within and outside of their own organization. 

 

Open communication and implementation of continual improvements are essential in order to guarantee high satisfaction levels over the long term which also boosts loyalty to Tecan. Customer feedback forms an important basis in this regard. Further measures were taken or already implemented in the year under review that should help continue to improve the overall customer experience. Customer satisfaction is also continually measured as an additional important pillar in the customer satisfaction program and to consolidate customer focus. Customers are also surveyed directly after transactions, service interventions or at set intervals. This feedback also forms the basis for ongoing improvements.

BRAND MANAGEMENT

Tecan is a leading brand in laboratory automation. It stands for the highest standards, quality, reliability and innovation. Protecting and growing the value of the Tecan brand are crucial elements for sustainable profitable growth of the company. The brand values are decisive success factors for building up and strengthening a brand in the life science research and diagnostic sectors on a long-term basis. A carefully selected and nurtured portfolio of several brands is of prime importance to Tecan and is a necessity if it is to differentiate itself from its competitors. The Company’s most important brand is the Tecan umbrella brand, followed by various brand names for product platforms.

 

Tecan also has a clearly identifiable visual signature, including a five-color barcode. The red dot reinforces the design of the Tecan corporate logo; it appears as a unique sign-off at the end of headlines and after the product name on instruments.

 

With the "Every Lab. Every day. Empowered.” vision, Tecan aims to maintain a global presence with outstanding technologies, products and support. Clear positioning, consistent communication and a convincing profile in electronic media as well as at traditional trade fairs are important components of successful brand management.

PATENTS AND PROTECTION OFINTELLECTUAL PROPERTY

Tecan is a pioneer and has been the market leader in laboratory automation for 40 years. Tecan’s success is based on core competencies that the Company has systematically acquired and expanded over the years. Tecan makes above-average investments in research and development to maintain and reinforce its position as market leader. Protecting its intellectual property is also of major importance in ensuring that the development of new products and technologies gives the Company a sustainable advantage in the market. Tecan registers patents on relevant developments for the most important markets in a timely manner. The Company has several hundred patents in various patent families. Once again, numerous new patents were granted in the year under review. 

 

Patents strengthen Tecan’s competitive position in a variety of products and applications. Numerous patents were also registered for the Fluent liquid handling platform and the Spark reader platform, many of which have already been granted. These patent registrations relate to a variety of basic inventions in the fields of both hardware and software that were made during the development of the platforms. 

 

An overview of the various patents has been published on Tecan’s website. The overall strategy to protect intellectual property includes patents, trademark registrations of the names of product platforms, registering designs to protect Tecan products from copycat products and protecting individual graphic software elements by means of design rights and trademark rights. Tecan also arranged for key branding elements of the new design to be protected and applied for brand registration.

BUSINESS PROCESSES

Business processes are an essential element in the organizational structure and they are employed to understand, manage and coordinate the business activities and form the basis of a successful development of the company. At Tecan, prudent corporate activity is an integral component of the daily routine of both employees and management. This requires clearly structured, transparent business processes. 

 

Driven by the strong growth of the company’s business and organization over the past years, greater significance was given to standardizing processes even more. Tecan has defined standard processes how employees operate. They provide a toolbox of commercial excellence, operational excellence and leadership processes, methods and tools. Standard work is key to stable, consistent processes and builds the foundation for continuous improvement and “highest standards”, one of Tecan’s values. The defined toolbox encompasses Strategy Deployment, Daily Management and Problem Solving and other methodologies to empower teams at the point of impact.

 

It is important that Tecan employees are familiar with globally binding internal corporate guidelines, business processes, and country-specific laws and regulations. Employees can access the most up-to-date version of these documents at any time in the Tecan Management System (TMS). The documents also convey intangible values that form the guiding principles of the corporate culture. The TMS is rated as a model tool by customers and external partners alike. Tecan develops the TMS on a continuous basis.

 

Tecan has had a continual improvement process (CIP) in place for many years. Employees in all areas of the Company should identify potential improvements at a day-to-day level, put forward solutions and contribute to their rapid implementation. The aim of the CIP is to enhance efficiency as well as quality and occupational safety, improve internal collaboration and finally increase profitability. Where possible, the success of the CIP is measured by examining key performance indicators. For example, in production this is done by looking at productivity, throughput time and inventories.

 

Tecan developed and installed the production and logistics system PULS specifically for continual process improvements as part of just-in-time manufacturing. This integrated system enables Tecan to identify opportunities and to better achieve the required, ever-stricter quality standards. The sustainability of the improvements is ensured by means of an audit system, which covers the relevant areas from occupational safety and environmental protection to management and collaboration. One of the guiding principles of PULS is to avoid waste caused, for example, by overproduction, standby time, excessive inventories and defective units. 

 

As part of the existing lean production, a consistent one-piece flow approach – an “employee-linked workflow” – was adopted in the production system. The employees accompany the instrument along the entire production path to completion, with no interruptions between the various work steps. Not only does this production process shorten production times and further improve quality, it should also further increase employees’ motivation levels.

 

In the production process, all employees have clearly defined responsibilities in the manufacturing process of the various product lines, and each product line is overseen by a production manager. Responsibility for the timely execution of orders, the procurement of materials and the observance of the agreed objectives is clearly allocated to individuals. Performance reviews are undertaken on the basis of KPIs (key performance indicators). Each morning, the production manager discusses the next steps to be undertaken with the entire team before production gets underway.

 

A continual improvement process is also being implemented in areas other than production. For example, sales, service or support processes are continually optimized, including on the basis of customer surveys.

CORRECT AND ETHICAL CORPORATE BEHAVIOR

Tecan has established several organizational control mechanisms with the aim of ensuring correct corporate behavior. In particular, the Internal Audit department has the task of periodically assessing the effectiveness of the internal control system.

 

The internal control system consists of all organizational measures taken by the Company in order to maintain the effectiveness of its operations, protect the corporate resources, appropriately manage the risks and ensure compliance with laws and regulations, while always keeping a strong focus on the trustworthiness of the financial reporting.

 

In this perspective, the Internal Audit has the power to check and verify processes, systems, management activities, projects and contracts, acting as a supervisory body independent from operations and is reporting directly to the Audit Committee of the Board of Directors. In the year under review, the Audit Committee and Head of Internal Audit held several meetings.

 

The Head of Internal Audit is a certified member of the Institute of Internal Auditors of Switzerland (SVIR) and the department is subject to the international standards for internal auditing.

 

Tecan has a formalized Code of Conduct that is binding for all employees, managers and Board members. In this Code, Tecan undertakes to maintain the highest standards in its business activities and to respect ethical values. The document is available to the public on the Company’s website. With the Code, Tecan aims to document internally and externally that the Company is a credible and reliable business partner and employer in all situations. The Code of Conduct also brings together in a comprehensible form the key guidelines that are already included in other tools, such as the employment regulations or the Tecan Management System. It helps employees understand the Company structure, and to seek further information or support in cases of doubt. The Code promotes compliance with standards on occupational health, safety and the environment. It provides instructions on ensuring data protection and handling confidential information, and requires accurate and timely communication of information and careful logging of relevant meetings and processes by Tecan staff. The Code also stipulates compliance with competition law as well as national and international trade law for the import and export of products. It guarantees anonymity for whistle-blowers. Although Tecan only generates a smaller portion of its sales in countries with an increased risk of corruption according to the criteria of the organization Transparency International, the Code of Conduct has a zero-tolerance policy toward bribery and corruption. Line managers are responsible for ensuring that all their staff know and understand the content of the Code of Conduct. All employees must attend and successfully complete a training course on the Code. 

 

The Code is established worldwide and trainings are mandatory for all employees of the company . Tecan conducts trainings for employees with a lower exposure in the form of e-learning courses. People exposed to higher business risks in their function, such as sales or procurement staff, also have to attend training courses in person. The Code is available in English and German as well as other languages, including Spanish, Chinese and Japanese. By providing these different language versions, Tecan wishes to ensure that this important document is understood by employees all around the world.

 

Due to the broad product portfolio and long life cycles of its products with ongoing spare parts support, Tecan as a company manages a total of more than 500 suppliers at its different production sites. These suppliers are mainly high-tech design and component makers in Europe, North America and Asia that supply parts or modules to the Company for final assembly. In spending terms, between 60% and 80% of Tecan’s purchase volume is typically sourced in the same region of the production site to balance cost efficiency, inventory needs, just-in-time delivery, freight cost, experience of suppliers and quality aspects.

 

Direct suppliers are subject to an audit program and Tecan’s most important suppliers are provided with a dedicated version of the Tecan Code of Conduct, to which they must commit. This document, the “Tecan Supplier Code of Conduct”, defines the minimum requirements by which all suppliers must abide. These refer to internationally recognized ethical standards relating to labor and the environment, as well as business practices. 

 

In order to prevent violations of the Company’s Code of Conduct, for employees and for suppliers, the Internal Audit department is in charge to provide assurance that the intended ethical standards are applied and takes the responsibility of the investigations in case events of non-compliance are reported. The Head of Internal Audit is a certified member of the Association of Certified Fraud Examiners (ACFE). 

 

Since 2018, Tecan is a signatory of the United Nations Global Compact, a voluntary initiative for companies wanting to align strategies and operations with principles of human rights, labor, environment and anti-corruption. In the framework of the UN Global Compact, Tecan is committed to supporting and implementing, within its sphereof influence, the ten fundamental principles relating to human rights, labor standards, the environment and the fight against corruption:

i. Protection of human rights
ii. No complicity in abuse of human rights
iii. Recognition of freedom of association and collective bargaining
iv. No forced or compulsory laborv
v. No child labor
vi. No discrimination
vii. Precautions against environmental challenges
viii. Promotion of environmental responsibility
ix. Promotion of environment-friendly technologies
x. Fight against corruption.

 

At the end of 2020 Tecan submitted – and published on its website – the annual Communication on Progress, which is a summary of the various activities in relation to the UN Global Compact.

 

In “Employment Handbooks” distributed to all employees of our different sites we emphasize our culture of respect and equal opportunity and we reaffirm our “zero-tolerance” attitude towards harassment, violence, discrimination and other unacceptable behaviors of such kind.

 

A program of mandatory online trainings is in place for all employees in order to raise the public awareness on the issues detailed in the Code of Conduct, including the Human Rights. In parallel to these remote educational initiatives, Tecan regularly organizes “live” sessions, in order to give specific guidance at individual sites.

In 2020, no events of Human Rights violation occurred. 

 

Tecan also carries out regular detailed screening of its distributors, and has established a separate process with a TMS directive (Distributors and Intermediaries Anti Bribery Due Diligence) for this purpose. In particular, the TMS directive requires that all Tecan distribution partners and their owners, directors and employees refrain from bribing representatives of governments or state-owned or private enterprises, or from taking bribes. It does not matter whether bribery is prohibited, tolerated or allowed in the countries in which business is being done. Bribes are prohibited irrespective of whether a bribe is connected to a specific act or omission or is granted or received with a general view to the future execution of duties. Bribes do not only involve cash payments but also mean, for instance, lavish gifts, hospitality and entertainment. Distributors and intermediaries need to ensure that their representatives and their sales force are trained and adhere to Tecan’s standards on doing business. In this perspective, the representatives of the Company’s distribution partners are required to give evidence of their understanding and acceptance of the Tecan Code of Conduct by answering an online questionnaire. 

 

Internal Audit closely monitors the compliance of the business run through dealers and distributors. The dedicated testing activity is focused on ensuring that all third party intermediaries explicitly committed to the Code of Conduct demonstrated a sufficient understanding of it and passed the background checks without issues of concerns (legal disputes, criminal investigations etc.). 

 

In order to automate these steps, in 2020, Tecan entered in an agreement with EthiXbase, a leading technology and data analytics company which in late 2020 received the Singapore Apex Corporate Sustainability Award, an initiative organized by the Singaporean chapter of the UN Global Compact. The technology, which will be implemented in 2021, will ensure a solid audit track of the checks performed and allow a “real time” detection of the unethical behaviors which may potentially have been reported for our dealers and distributors in the press or in the dedicated data banks.In individual cases, past screenings have led Tecan to terminate relationships with intermediaries. The process is also applied during the selection of new distributors.

 

In 2020, Tecan also entered in an agreement with EQS, a specialized provider of compliance solutions, for implementing a “state of the art” whistleblowing portal. Starting from the beginning of 2021, Tecan employees and external stakeholders are able to report potential events of misconduct over the dedicated whistleblowing platform. It allows to file complaints by connecting to a web portal or contacting a multi-language telephone hotline. The EQS platform ensures the highest standards of confidentiality and anonymity as well as a secure communication between the whistleblower and the members of the Internal Audit department of Tecan in charge of investigating the issues reported. Tecan already updated internal procedures and training modules in order to duly take into account opportunities and obligations related to the whistleblowing reports delivered over the EQS tool.

 

As in previous years, Tecan has not been involved in any legal cases, rulings or other events related to corruption and bribery in 2020.

SAFETY AND REGULATORY REQUIREMENTS

Tecan has established processes Group-wide and at its individual business locations to ensure compliance with national laws and regulations as well as with internal guidelines on safety and environmental protection. The Company invests substantial amounts each year in pursuit of further improvement. Tecan cooperates closely with public authorities and standard-setting bodies around the world to recognize new trends in regulation, occupational safety and environmental protection as early as possible and to integrate them in its corporate processes. The Company actively shapes these developments in significant economic regions by participating in key industry associations.

 

Internal and external experts regularly inspect whether Tecan’s locations comply with country-specific regulations and the Company’s internal standards for product and occupational safety as well as health and environmental protection. These inspections also cover measures that Tecan has to implement if it fails to meet any requirements. Each year, the locations are subject to a number of audits conducted by regulatory authorities, testing, monitoring and certification agencies, customers, and Tecan’s own specialist teams. As part of a continual improvement process, gap analyses are performed and improvement measures implemented. Each year, Tecan is subject to a number of sometimes extensive audits by customers at its production sites. These include leading diagnostics companies that Tecan supplies with instruments through its OEM business in the Partnering Business, or will supply in the future. The audits cover areas including processes, quality management systems, product design, validation and documentation. The customers attest a high standard at Tecan with regard to the relevant requirements. Tecan is also subject to regular extensive audits by international authorities at its production sites. In recent years, the US Food and Drug Administration (FDA), for example, inspected Tecan’s main production sites for instruments in Männedorf (Switzerland), Grödig (Austria) and San Jose (USA). All audits were successfully concluded with zero formal observations. 

 

Also, Tecan US, the importer and sales and service arm for the Americas, was inspected by FDA with zero observations. The production site for immunoassays in Hamburg (Germany) was already successfully certified for the Medical Device Single Audit Program (MDSAP). The MDSAP is a catalog of requirements for manufacturers of medical products drawn up by a number of participating countries. It aims to ensure that audits are performed in a standard and thus simplified manner. Thus, manufacturers of medical products can gain access to several markets by means of a single audit. Countries currently participating in the MSDAP are the USA, Canada, Japan, Brazil and Australia. Health Canada has mandated transition to MDSAP program in order to market and obtain device licenses for Class 2, 3 and 4 devices as of January 1, 2019. As part of the Company’s continuous improvement efforts, additional Tecan production sites will enroll in the MDSAP program.

 

Another focal point in Tecan’s regulatory efforts is the supporting of customers in the Partnering Business, with Tecan making key documentation available for authorization applications for new diagnostic instruments. Furthermore, Tecan is building up strong, regulatory partnerships in order to guarantee successful marketing beyond market launch during the entire product life cycle.

To ensure these efforts were compliant with the relevant regulations, they were based on various ISO standards. Tecan put together an ISO 14971-certified product risk management process for medical devices that covers the entire lifespan of a product and evaluates all possible risks, especially those pertinent to patients and users. The Tecan parent company, all production sites and almost all sales subsidiaries have now transitioned to the latest ISO 13485:2016-certification well ahead of the required transition date. The most important difference versus prior versions of ISO 13485 lies in the greater focus on risk management. As part of the risk assessment, processes are analyzed, for example during the development phase of a product, to determine whether the processes can influence product quality. At the same time as transitioning to the latest ISO 13485 standard, Tecan has completed transition to the current ISO 9001:2015 standard for its production sites.

As part of its ISO certification strategy, Tecan obtained a full, Groupwide matrix certificate based on ISO 13485. The Company wants to ensure that all units worldwide work according to the same processes and strive together to continuously improve their products and services. The matrix certificate also accommodates the current and future Group structure with an increasing number of subsidiaries. In Europe, the sales subsidiary in Germany was awarded the main certificate, while subsidiaries in other countries received sub-certificates. This new method of coordinated certification has benefits for customers and Tecan alike: greater transparency; the possibility to systematically monitor processes worldwide; and harmonized, standardized systems that also accommodate differences in the markets. The matrix certificate results in considerable simplifications and increased safety compared to individual certificates. The certifying body verifies the certification annually with sample checks at different subsidiaries. Tecan products must also satisfy the following important requirements, among many others: US QSR (Quality System Regulation)/21 CFR 820, Canadian Medical Device Regulations SOR/98-282, PMD Act (Pharmaceutical and Medical Device Act) and CCC (Chinese Compulsory Certification). New opportunities are developing for Tecan in emerging markets, which will place additional requirements on the Company.

 

Regulatory requirements are increasing around the world. To ensure that the current versions of these are understood and satisfied everywhere, Tecan is in constant contact with local organizations and authorities. 

 

An example is the readiness and implementation of a new regulation in the EU. At the beginning of 2021, Tecan has become one of the first companies to meet the requirements of the European Union’s In Vitro Diagnostic Regulation (IVDR) 2017/746 (Annex IX, Chapter I and III), successfully completing certification of its IBL International DHEA Saliva ELISA diagnostic assay kit through BSI Notified Body 2797. The valuable insights gained from this process will now be applied to the registration of Tecan’s complete portfolio of specialty IVD products – as well as to help its OEM partners ensure they are ‘IVDR ready’ – ahead of the May 2022 transition deadline.

 

The new IVDR is intended to increase the safety of all IVD products, including all innovations developed over the past decades. It represents a major regulatory overhaul, requiring reclassification and certification of all EU-registered IVD assays and devices. Introduced in 2017, it extends the scope of the outgoing IVDD to cover more devices and technologies – as well as supply chain and lifecycle management – and signifies a shift from a primarily "self-certification" model to a requirement for notified body oversight. 

 

Tecan has a central Quality & Regulatory organization at Group level to ensure ongoing improvements in the high quality standards worldwide. In Europe, all of the quality systems of the national subsidiaries and organizations have been harmonized and processes standardized, including sales, service and complaint processes. Tecan operates a Central Complaint Unit for customer complaints. The Company performs a global management review every year in which relevant data from all Group companies are reviewed centrally. The process assesses whether quality management is still optimized to the legal requirements and regulations for the products and services supplied by Tecan. Tecan undertakes this review with regard to the individual national markets as well as from a Group-level perspective.

 

Tecan’s approach to product development is also characterized by an awareness of quality and regulatory requirements. Specialists collaborate from an early stage, supporting the process in a series of structured stages that span the product’s entire life up to the point where it is withdrawn from the market.

ENVIRONMENT

The Company attaches great importance to acting responsibly and in an environmentally friendly manner in the development, manufacture and global distribution of Tecan products as well as in all services it provides. In a Policy Statement for Product Environmental Compliance published online, Tecan expresses its commitment to provide customers with safe, high-quality, and environmentally friendly products and to comply with all relevant product environmental legislations. The Company strives to continually identify and realize opportunities to reduce the environmental footprint of its products during product design, manufacture, use and disposal. 

 

All Tecan production sites and the majority of suppliers are located in stringently regulated markets. Direct suppliers are subject to an audit program in order to ensure sustainable business.

 

In the production process of instruments – unlike, for example, the mass production of consumer goods – Tecan focuses on the final assembly of a relatively small number of items of laboratory equipment. In comparison with companies with extensive production processes, Tecan therefore emits only very low levels of pollutants. Tecan implemented numerous controls as part of the ISO 13485 certification, which applies to all production sites and sales subsidiaries. ISO 14001 certification, which provides guidelines for the establishment or improvement of an environmental management system, has not been applied for, as during final assembly at the production sites, CO2 or other greenhouse gases are only emitted for heating or cooling purposes (Scope 1 emissions). Also, the ISO 14001 standard shares many common traits with ISO 9000, the international standard of quality management, which serves as a model for the ISO 14001 internal structure. Tecan has established the current ISO 9001 standard for its production sites.

 

RESPONSIBILITY FOR CLIMATE PROTECTION

Overall, Tecan is committed to taking responsibility for climate protection and to making a contribution. 

 

Concrete quantitative reduction targets for CO2 emissions have therefore also been set for the first time in 2019. In an initial step, Tecan is looking to reduce by at least one third the absolute direct and indirect emissions in the next three years from 2020 to2022 (Scope 1+2 on a comparable basis to 2019 in t CO2-eq, i.e. same group of production sites). 

 

Despite the significant sales growth, total emissions in this like-for-like comparison fell by 8.9% in 2020, which corresponds to a reduction of more than 119 tons of CO2 equivalents (t CO2-eq).

 

As a further reduction measure, for example, Tecan installed new photovoltaic panels on the roof of the main building of company headquarters in 2020; this should help to cover close to 10% of the annual electricity consumption on site in the future. The remaining electricity consumption was also converted to renewable energies during the course of the year 2020 for the Männedorf (CH) site. Other locations are planned to follow.

 

As a company, Tecan is aiming to become climate-neutral over the medium term. To do this, Tecan is working on a series of measures and evaluating whether, how and when the Company can achieve and implement this aim.

 

As it is impossible to avoid or reduce greenhouse gas emissions completely, the Company began to compensate for some of the climate-damaging effect in 2019. In 2020, Tecan significantly broadened the scope of these activities and received two "climate neutral" certifications. After calculating the corporate carbon footprint of its headquarters, also the company’s largest development and production site, Tecan offset the entire emissions via recognized carbon offset projects. Tecan also calculated and fully offset the carbon footprint of its flagship product Fluent Laboratory Automation Workstation. 

 


THE NEWLY INSTALLED PHOTOVOLTAIC SYSTEM ON TOP OF THE TECAN HEADQUART
CORPORATE CARBON FOOTPRINT FOR TECAN’S SITE IN MÄNNEDORF (CH)

 

 

Emission Source

t CO2

%

Scope 1 

Vehicle fleet

104.8

7.2

Cooling agents

35.0

2.4

Heating

0.0

0.0

Subtotal scope 1

 

139.8

9.5

 

 

 

 

Scope 2 

Externally generated heat

113.2

7.7

Electricity

30.6

2.1

District cooling

0.0

0.0

Subtotal scope 2

 

143.8

9.8

 

 

 

 

Scope 3 

Employee commuting

786.8

53.7

Flights

323.6

22.1

Upstream emissions of heating/cooling

54.1

3.7

Upstream emissions of electricity

12.3

0.8

Water

2.6

0.2

Waste treatment

1.7

0.1

Office paper

0.0

0.0

Subtotal scope 3

 

1,181.1

80.6

 

 

 

 

Total

 

1,464.7

100.0

 

 

 

 

Emission offsetting

 

1,611.1

 

Two production sites produce direct emissions exclusively from the combustion of natural gas for heating purposes and two sites due to use of cooling agents. Indirect emissions arise from energy purchased (Scope 2 emissions). On a comparable basis, these were further reduced by 38.1% in the year under review due to the implemented “work from home” policy during the COVID-19 pandemic, but also thanks to additional saving measures. 

 

On a comparable basis, total greenhouse gas emissions (scope 1 and 2) decreased by 8.9% to 1,225.0 t CO2-eq (2019: 1,344.5 t CO2-eq). Including a new site from a company acquired during 2019, the overall emissions have increased by 39.5% to 1,875.4 t CO2-eq. The new site in Morgan Hill, California, USA, is more energy- intensive than the other sites because it operates a fleet of CNC machines that consume more electricity.

 

Tecan aims to be transparent and trustworthy regarding the Company’s emissions and therefore has participated in the annual Carbon Disclosure Project (CDP) for several years, also allowing its results to be made publicly available.

Greenhouse gas emissions

 

Unit

2018

20191

20192

20203

20204

Total direct CO2 emissions (scope 1)

Ton (CO2 equivalents)

184.1

176.43

235.77

346.3

456.7

  Emissions via fuel consumption

Ton (CO2 equivalents)

0

0

0

0

104.8

  Emissions via natural gas consumption

Ton (CO2 equivalents)

184.1

176.43

235.77

311.3

311.7

Total direct emissions of other greenhouse gases5

Ton

0

0

0

35

40.2

 

 

 

 

 

 

 

Total indirect CO2 emissions via 

  energy procurement (scope 2)

Ton (CO2 equivalents)

877.37

839.59

1,108.69

878.7

1418.7

  Emissions via electricity procurement

Ton (CO2 equivalents)

822.7

780.8

1,049.90

727.9

1267.9

  Emissions via heating energy

Ton (CO2 equivalents)

49.26

53.26

53.26

150.8

150.8

  Emissions via cooling energy

Ton (CO2 equivalents)

5.42

5.54

5.54

n.a.

n.a.

 

 

 

 

 

 

 

  Emission intensity (scope 1 +2 emissions/turnover)

Ton (CO2 equivalents)/
CHF million

1.79

n.a.

2.11

1.69

2.57

  1. Without Tecan Genomics (NuGen Technologies)
  2. Including Tecan Genomics (NuGen Technologies)
  3. Without DCPM Inc.
  4. Including DCPM Inc.
  5. Use of cooling agents now captured in scope 1; restated for 2018 and 2019

OFFSETTING CLIMATE-DAMAGINGEFFECTS

Even though the overall business only emits low levels of pollutants, Tecan attaches great importance to reducing greenhouse gas emissions. As it is impossible to avoid or reduce them completely, the company has started in 2019 to at least offset some of the climate-damaging effects. Carbon offset projects help other people in this world to enjoy better living conditions. Since they also demonstrably save greenhouse gas emissions, they protect the climate. It is also commonly believed that without offsetting carbon, the goals of the Paris Agreement on climate change will not be achievable.

 

To help calculating the carbon emissions and offset them via recognized carbon offset projects, Tecan mandated ClimatePartner, a leading provider offering companies climate action solutions.

TECAN HEADQUARTERS CERTIFIED AS CLIMATE NEUTRAL

Tecan has calculated the Corporate Carbon Footprint (CCF) for its headquarters and largest development and manufacturing site in Männedorf, Switzerland. It was calculated based on the standards defined in the Greenhouse Gas Protocol Corporate Accounting and Reporting Standard (GHG Protocol).

 

The Corporate Carbon Footprint is an important component for the development of a climate protection strategy. By analyzing the carbon footprint, it is possible to identify reduction potentials, develop appropriate measures and define climate protection goals.

 

Offset Project: Cookstoves for healthy people and forests in Rwanda

Nyungwe Forest National Park in the southwestern corner of Rwanda is the biggest mountain rain forest on this side of the African continent and the country's most important site for biodiversity. However, the growing population in areas around the park and their increasing use of firewood for cooking is putting more and more pressure on the unique rainforest ecosystem.

 

This project enables households to reduce their wood consumption. Traditionally, families here cook over an open three-stone fire. This is inefficient and also a serious threat to health due to the heavy smoke pollution. The project will introduce efficient cooking stoves made of local clay and sand. The so-called Canarumwe model is produced by a local cooperative and consumes two thirds less fuel than the three-stone fire. The stoves are offered at a subsidized price so that low-income households can afford them. Since women are usually responsible for the fire, they and their children benefit particularly from the project.

 

How do cookstoves help fight global warming?

In many of the world's poorer regions, families cook their meals over an open fire, often in enclosed spaces. This method of cooking is however not energy efficient, as large amounts of heat go to waste. Clean cooking stoves are often simple devices made from metal or clay that use energy more efficiently. Families can thus save fuel and cut down on carbon emissions. Sometimes the stoves are even used in small businesses.

 

The project contributes to the sustainability goals defined by the United Nations (SDGs) 1, 2, 3, 4, 5, 7, 8, 12, 13, 15 and 17.

FLUENT LABORATORY AUTOMATION WORKSTATION CERTIFIED CLIMATE NEUTRAL

In 2020, Tecan has calculated the carbon footprint of its flagship product Fluent Laboratory Automation Workstation, an innovative and highest performance liquid handling platform. The latest international standards were applied to calculate Fluent’s product carbon footprint (PCF). The PCF is based on the entire lifecycle of the product, from raw materials and manufacture to supply (cradle-to-gate) and, beyond that, comprise all downstream activities including the final disposal (cradle-to-grave).

 

Offset Project: Clean and independent energy supply for farmers in China

With the support from this project, 15,555 biogas digesters have been constructed in peasant households in the 20 towns belonging to the city of Haikou in Hainan province. The project helped farmers to build methane digesters where organic matter including manure and wastes are decayed anaerobically. Every household has an average of 2.5 pigs, the manure of which is fed into the digester with a volume of eight cubic meters, producing enough biogas to meet one household's thermal energy demand.

 

Before the project started, the farmers stored the manure in deep pits with anaerobic conditions for more than three months, which caused large amounts of methane emissions to the atmosphere. The project helps avoid these methane emissions, but also CO2 from cooking. The biogas produced in the digesters is used for cooking meals and heating water, replacing the use of coal stoves which was used in absence of the project activity.

 

How do biogas projects help fight global warming?

In biogas facilities, biomass ferments into biogas in sealed digesters. Biomass may consist of organic waste or dung from cows or other animals. In countries like India or Vietnam, families use the gas from small biogas plants for cooking. This reduces CO2 emissions that would be produced by cooking with wood or charcoal. Biogas plants also prevent methane from escaping into the atmosphere – as is the case when organic waste is stored in a mine. Instead, the resulting gas is fed directly from the closed container to the cooking units.

 

The project contributes to the sustainability goals defined by the United Nations (SDGs) 1, 2, 3, 6, 7, 8, 9, 12, 13 and 17.

FOCUS ON ENERGY REDUCTION

The manufacturing process itself is less energy-intensive and is limited to the final assembly. Energy costs therefore make up less than 1% of all operating costs. For the year under review, the Environmental Performance table shows the values of the production sites in Männedorf (Switzerland), Grödig (Austria), San Jose (USA), Hamburg (Germany), Baldwin Park (USA) and Redwood City (USA). These values are comparable to 2019. A company acquired during 2020 is not yet included in the table.

 

Overall energy consumption on a comparable basis decreased by 2.5% in the year under review despite the much higher production output. The energy intensity, which is the total energy consumption in relation to sales, decreased by 15.2%.

 

Based on an energy consumption analysis, Tecan has replaced conventional lighting with energy-efficient LED technology over the last years. At its largest site in Männedorf (Switzerland), about 2,800 new LED lights were installed which help save between 160,000 and 180,000 kilowatt hours on an annualized basis. At the development and production site in Austria, new LED lighting saves about 29,000 kilowatt hours every year. The San Jose (USA) site also switched over to LED lighting in 2019. On a comparable basis, electricity consumption decreased by 10.3%.

 

Tecan continuously invests in measures aimed at further increasing energy efficiency. The Company already implemented various energy-saving measures such as the installation of new cold-water pumps, better insulation of the cooling distribution system as well as the acquisition of a new refrigeration system with a significantly better energy rating in the production facility in Männedorf. 

 

Tecan takes care to ensure that modern, energy-efficient technology is also used in the infrastructure of its buildings. For example, hot and cold water lines in the ceiling are the main source of heating and cooling at the headquarters in Männedorf. Processed wastewater from the Männedorf public wastewater treatment plant supplies the heat pumps with energy.

 

Tecan uses water provided by utilities primarily for sanitary services and in the kitchen for the staff restaurants. No significant amounts of water are used as a production factor in the assembly and testing process or during development. As Tecan’s water requirements are met entirely by the communal water utilities they do not influence any water resources in protected areas. Tecan returns water to the sewage system without contamination and has experienced no spills from operating processes or other instances of water contamination.

 

Overall consumption decreased by 20.5% compared to the previous year mainly due to the implemented “work from home” policy during the COVID-19 pandemic. 

 

The areas used at the production sites consist exclusively of offices and rooms for assembling products, all of which are located in already developed commercial and industrial zones. Environmental considerations such as the impact on protected areas and biodiversity are therefore not relevant in the current circumstances. The net floor area was unchanged compared with the previous year as a newly acquired company was not included in the reporting yet. 

 

Paper consumption compared to the previous year decreased by 41.2%, with less employees working in the office. However, Tecan continues to focus on expanding efficient processes that also help save natural resources. The DocuSign solution for paperless processing of contract documents, for example, has been more widely established in the company. During 2020, it helped to save almost 31 tons of wood or 750,000 litres of water that would have been needed to make the paper if the respective documents had been printed. 

 

Despite higher production output, total waste fell by 18.9% on a comparable basis. Of the total waste, recyclable waste and refuse accounted for 98.6%. Only a small portion of it was hazardous waste, which includes materials, solvents and chemicals contaminated through the automation of biological processes, for example. Tecan complies with legal requirements to transport and dispose hazardous waste solely through authorized disposal agents.

Environmental performance

 

Unit

20181

20192

20203

Net floor area 

m2

31,409

33,357

33,357

 

 

 

 

 

Energy consumption

 

 

 

 

  Total energy consumption

Gigajoules

19,315.7

23,107.7

22,528.2

  Total direct energy consumption

Gigajoules

3,598.9

4,609.0

5,566.1

    Total fuel consumption

Gigajoules

0

0

0

      Fuel consumption/m2

Gigajoules/m2

0

0

0

    Total natural gas consumption

Gigajoules

3,598.9

4,609.0

5,566.1

Total indirect energy consumption

Gigajoules

15,716.8

18,498.7

16,962.1

    Total consumption of electricity

Gigajoules

13,520.9

15,723.9

14,100.1

    Total heating energy 

Gigajoules

2,195.9

2,774.8

2,862.0

    Total cooling energy4

Gigajoules

0

0

0

    Total steam consumption

Gigajoules

0

0

0

  Energy intensity (total energy/turnover)

Gigajoules/CHF million

32.5

36.3

30.8

 

 

 

 

 

Water consumption

 

 

 

 

  Total water consumption

m3

9,133.4

10,925.3

8,683.6

 

 

 

 

 

Paper consumption

 

 

 

 

  Total paper consumption 

kg

22,535.4

26,391.2

15,527.0

  Percentage of recycled paper

Percentage

67.8

71.4

n.a.

 

 

 

 

 

Waste consumption

 

 

 

 

  Total waste

Ton

272.6

264.8

214.7

    Normal waste

Ton

159.5

152.1

106.7

    Recyclable waste

Ton

108.9

106.3

105.0

    Hazardous waste

Ton

4.2

6.4

3.0

  1. Without Tecan Genomics (NuGen Technologies)
  2. Including Tecan Genomics (NuGen Technologies)
  3. Including Tecan Genomics (NuGen Technologies), without newly acquired DCPM Inc.
  4. Now included in "total consumption of electricity", also regrouped for 2018 and 2019
BUSINESS-RELATED TRAVEL

Tecan operates on a global basis and business-related travel is essential to conduct business and run its operations with production sites, direct selling units and distribution relationships on six continents. Tecan has engaged a travel management company to efficiently book, manage global air travel as well as a smaller share of its railway travel activities and thereby help contain overall business travel spending. Due to travel restrictions in connection with the COVID-19 pandemic, travel activity was significantly reduced overall. 

 

The greenhouse gas emissions shown in the table arising from business flights and rail journeys for the year under review and in the prior year periods were calculated by the external travel management company using the available booking data. They contain all greenhouse gas emissions, i.e. methane and nitrous oxide as well as carbon dioxide. Total emissions are calculated based on the recognized GHG conversion factors of DEFRA (Department for Environment, Food and Rural Affairs, GB) in tons of CO2 equivalents (t CO2-eq). Booking class is also taken into account as well as the actual kilometers flown.

 

In 2020, the CO2 emissions from business flights and rail journeys have decreased by 62.0% to 950.3 t CO2-eq (2019: 2,501 t CO2-eq). The CO2 emission intensity of business travel (expressed in t CO2-eq/CHF million turnover) decreased to 1.3 (from 3.9 in 2019). Switzerland, the US and China together contributed with more than 94% of those travel-related emissions. 

 

As part of the Carbon Footprint for the Männedorf location, Tecan again offset all emissions from flights originating in Switzerland.

 

Tecan encourages the use of information and communication technologies, such as modern video conference systems to reduce the need for air travel. To do so, the technical infrastructure was again improved in dedicated conference rooms in the year under review in order to increase acceptance. The Company also incentivizes the use of public transportation where possible, as its availability differs in the various countries. At Tecan’s site in Switzerland, its largest site for development, production and administrative functions, the Company offers its employees a personal yearly travelcard at a significantly reduced rate which is valid in all zones of the Zurich Transport Network. With this contribution, Tecan wants to support its own workforce while endorsing environmentally friendly mobility.

 

Tecan also supports employees at the Männedorf location in their use of electric vehicles. The Company therefore significantly expanded its provision of separate parking spaces with charging stations that can still be used for free. The new charging stations came into use in December 2019. Now more than 10% of all parking spaces are equipped with charging stations. With increasing demand, Tecan has already made technical provision for expansion. However, most employees use public transport to get to work.

GREENHOUSE GAS EMISSIONS FROM BUSINESS TRAVELS

 

 

Unit

2018

2019

2020

Indirect CO2 emissions via business travel (scope 3) 

 

 

 

 

  Total emissions according to DEFRA1

Ton (CO2 equivalents)

2,527.6

2,500.6

950.3

  Emission intensity (emissions/turnover)

Ton (CO2 equivalents)/CHF million

4.26

3.93

1.30

 

 

 

 

 

Compensation of emissions from flights originating

  in Switzerland

 

 

 

 

  Compensation of CO2 emissions

Ton (CO2 equivalents)

 

3,678

3562

  1. The UK Department for Environment, Food and Rural Affairs
  2. As part of broader emission offsetting of the Corporate Carbon Footprint of Tecan’s site in Männedorf (CH)
FREIGHT

In addition to business travel, the freight transport division also represents another source of Scope 3 emissions. This applies to both the transportation of unfinished materials and components of supplier companies to Tecan as well as to the conveyance of finished products to customers. In the year under review, Tecan has offset the product carbon footprint for its Fluent Laboratory Automation platform, including emissions generated in inbound and outbound logistics. 

MATERIALS AND THE ENVIRONMENTAL IMPACT OF PRODUCTS

Tecan attaches great importance to using the most environmentally friendly materials and ecologically efficient processes possible. The Policy Statement for Product Environmental Compliance specifically describes the Company’s commitment to comply with the following laws and regulations:

  • The European Union (EU) Directive on “Restriction of use of certain Hazardous Substances in electrical and electronic equipment”, 2011/65/EU (RoHS2 Directive)
  • The Chinese Management Methods for Restricted Use of Hazardous Substances in Electrical and Electronic Products (China RoHS)
  • The European Union (EU) Regulation EC 1907/2006 on Registration, Evaluation, Authorization and Restriction of Chemicals (REACH Regulation),
  • The European Union (EU) Directive on Waste Electrical and Electronic Equipment Directive, 2012/19/EU (WEEE Directive)

Employees receive regular training and are familiar with the latest developments in this area. 

 

In addition to environmental aspects, such as avoiding toxic substances that are not readily biodegradable in electrical and electronic devices, there are also ethical aspects related to rare earth elements and mining conflict minerals. Tecan’s ultimate goal is to prevent the use of conflict minerals (gold, tin, tantalum, or tungsten) that originate from sources whose profits support armed groups and human rights abuses, yet support the use of materials from legitimate sources. The US Dodd Frank Act (section 1502) from 2010, addressing US publicly listed companies, is the first legislation that tackles this problem. Even if not affected directly, Tecan is committed to support its customers to comply with this legislation and adheres to the applicable elements of the OECD Due Diligence Guidance for responsible supply chains of minerals from conflict affected and high-risk areas. Tecan is working together with suppliers on these areas and requires a Declaration of Conformity that human rights are respected as part of supply agreements.

 

Through the reliable, robust and sustainable design of its products, Tecan continuously targets progress in their environmental sustainability. The PULS program set up by the Company also includes targets and measures to avoid wasting materials and energy. 

 

The products manufactured by Tecan are used in laboratories for life science research, in applied markets and in clinical diagnostics. The largest product group here comprises laboratory instruments for the automation of different repetitive work steps. These automation platforms handle durable capital goods that can be used by customers over many years. The Tecan platforms can be very flexibly configured, which makes them highly durable, as they can be adapted to various requirements over time. This not only secures customers' investments, but also makes a contribution towards the sustainable use of resources.

 

Tecan customers mostly work in laboratories with biological agents, such as blood or possibly pathogens, and with chemical substances. This means that a circulatory system of material flows through recycling materials, as established in many industries, is only very limited or not possible at all. Depending on local legislation and the laboratory's biological protection level, i.e. hazard classification of biological agents, various disposal processes must be followed. Before leaving the protected area, the equipment must be fully decontaminated whenever possible. Tecan's customers often engage an external specialist company to do this and for ultimate special disposal.

 

Special consumables are also increasingly used for numerous work steps as part of automation. Even for applications involving genomics, many customers, for example, prefer to use disposable pipette tips for liquid transfers in order to avoid cross-contamination with other samples. Tecan also offers a broad portfolio of various consumables, such as disposable pipette tips, for differing volumes and areas of application. However, Tecan is one of the few suppliers to leave it up to the customer, depending on the application, as to whether steel needles are used for pipette steps. To do so, Tecan has two completely different technologies for liquid transfers. For applications where the risk of cross-contamination is only very minimal or even non-existent, it also makes sense to use steel needles for reasons of sustainability. The relevant areas of application are also the popular ELISA technology or immunoassays used in research and in diagnostics. A major OEM customer in the partnering business, market leader in immunohematology, also uses steel needles for determining blood groups and other important blood parameters.

 

After using disposable plastic pipette tips, laboratories are subject to the same fundamental guidelines as for the disposal of laboratory equipment. Depending on the application, they have to be decontaminated and properly disposed of. This means that recycling the plastic is only possible on a very limited basis and is sometimes impossible.

 

Tecan therefore focuses on the production process and on reducing material quantities, especially secondary packaging. In 2019, a new packaging was introduced for certain pipette tips which contains 45% less plastic compared to the previous one. As well as reducing the amount of plastic, the new boxes also take up less room, making transport more economical and environmentally friendly. 

 

In general, Tecan also takes account of sustainability aspects in product design. For example, a lighter and more compact design of laboratory instruments means that CO2 emissions arising from their transportation can be reduced. The use of LED lamps also allows a great deal of energy to be saved in comparison with predecessor technologies. Electricity consumption is also taken into account for the operation of instruments. For instance, the Fluent automation platforms go into standby mode if idle for more than five minutes.

 

Customer service staff use tools that enable completely paper-free processes. The operating instructions of equipment are also available electronically rather than in paper form with several hundred pages. The continual expansion of remote customer services and visualization of instruments in the customer laboratory by augmented reality increasingly replace some customer visits or transportation of instruments, which thus helps cut down on emissions.

EMPLOYEES

Tecan is very aware of the enormous responsibility it bears for its employees. They are the foundation of the company’s successful development, and each day they contribute to progress in life science research and diagnostics. This contribution, providing a positive influence on people’s well-being and health is an important part of Tecan’s corporate culture. The Company has grown strongly in recent years and wishes to continue growing in the coming years. This means that the number of employees will continue to rise significantly in the coming years. The changes in society resulting from demographics with a shortage of talent and specialists make an active personnel policy a focal point of corporate practices. 

 

COMPLIANCE WITH FUNDAMENTAL LABOR RIGHTS

The basis for working with Tecan is an open, diverse and integrated culture that focuses on dealing with one another respectfully, with the same rights and opportunities for all employees. To guarantee this, strict personnel policies were established that are binding at all companies around the globe. National hiring rules ensure compliance with laws on, for example, gender equality and non-discrimination. Both Tecan managers and employees are also held to strict ethical guidelines. These ethical guidelines are firmly established in the Code of Conduct and form part of the training requirements for all employees. As part of fundamental labor rights, Tecan is also committed to observing international labor and social standards that are based on the defined standards of the International Labour Organization (ILO), a specialized agency of the United Nations. The globally applicable minimum standards are intended to ensure workplace rights and thus decent work. The four basic principles of the ILO are freedom of association and the right to collective bargaining, the elimination of forced or compulsory labor, the abolition of child labor and the elimination of discrimination in respect of employment and occupation. Also by signing the UN Global Compact, Tecan committed to the principles relating to human rights and labor standards.

 

Tecan employees and external stakeholders are able to report potential events of misconduct over a new dedicated whistleblowing platform, which ensures the highest standards of confidentiality and anonymity.

 

GROWING INTERNATIONAL WORKFORCE

Tecan has a very cosmopolitan workforce comprising employees from 50 countries, and is increasingly present in all global regions. In 2020, the total number of employees rose by 6.1% to 2,050 full-time equivalents (2019: 1,932). 

 

 

Unit

2017

20181

20192

20193

2020

Number of employees

 

 

 

 

 

 

  Employees

Number FTE

1,482

1,598

1,932

1,764

2,050

  New positions created

Number FTE

69

116

334

166

118

 

 

 

 

 

 

 

Employees by activity

 

 

 

 

 

 

  Manufacturing and logistics

Number FTE

404

415

583

 

644

  Sales and marketing

Number FTE

381

398

466

 

494

  Customer service

Number FTE

256

280

314

 

331

  Research and development

Number FTE

273

329

361

 

370

  General and administration

Number FTE

168

176

208

 

211

 

 

 

 

 

 

 

Employees by region

 

 

 

 

 

 

  Switzerland

Number FTE

516

556

601

 

669

  Other Europe

Number FTE

453

484

501

 

527

  North America

Number FTE

371

408

555

 

569

  Asia-Pacific

Number FTE

142

150

275

 

285

  1. Excluding Tecan Genomics (previously NuGEN Technologies)
  2. Including an acquisition from 2019
  3. Excluding an acquisition from 2019
LONG-TERM EMPLOYMENT RELATIONSHIPS AND STAFF RETENTION

Tecan’s success is based on core competencies that the Company has systematically acquired and expanded over many years. This expertise and the competency of employees should be retained in the Company. The average number of years of service was unchanged at 7.3 years. At less than 10%, the rate of voluntary fluctuation remained at a healthy level in the year under review.

 

The type of employment relationships also plays a role in this. At around 94%, the largest proportion of the workforce by far are permanent employees; those employed on a temporary and fixed-term basis account for only 5% of the workforce. Tecan offers flexible working hours with options for full-time or part-time jobs to differing degrees to help manage the demands of work, family and other aspects of live. Flexible working times are a key element in achieving the right balance to meet employees’ diverse needs, but also to maintain a competitive work environment to enable delivery of superior business outcomes. In 2020, Tecan introduced a new flexible-working pilot scheme that broadens the options for flexible working time. 

 

Options of the pilot guideline are subject to local law and include:

  • Flex time offers, wherever possible, flexibility when a workday starts and when it ends.
  • Part-time employment, job sharing or phased retirement to reduce the total number of hours worked and/or sharing one full-time job responsibility with multiple employees.
  • Mobile working that offers the option to work from different approved locations.
  • A variety of flexible working options which will help employees in family matters (parental leave and leave options to care for family members).

 

Contract Types (2020)

Employment Contract

Share in %

Fix employees

93.95%

Temporary and limited in time employees 

4.86%

Apprentices, trainees, students

1.18%

Employment

 

Unit

2017

20181

20192

2020

Full-time

in % of all ­employees

88.7%

88.9%

89.0%

89.0%

Part-time

in % of all ­employees

11.3%

11.1%

11.0%

11.0%

  1. Without Tecan Genomics (previously NuGEN Technologies)
  2. Without the acquisition from 2019
Flexible Work Options (2020)

Gender

Share in %

Men

 

  Full-time

93.9%

  Part-time

6.1%

Women

 

  Full-time

80.5%

  Part-time

19.5%

 

Age Group1

Share in %

under 30 years old

 

  Full-time

90.1%

  Part-time

9.9%

30-50 years old

 

  Full-time

89.2%

  Part-time

10.8%

over 50 years old

 

  Full-time

88.3%

  Part-time

11.7%

  1. Without USA

Regions

Share in %

Switzerland

 

  Full-time

78.8%

  Part-time

21.2%

Other Europe

 

  Full-time

86.3%

  Part-time

13.7%

North America

 

  Full-time

98.7%

  Part-time

1.3%

Asia-Pacific

 

  Full-time

99.3%

  Part-time

0.7%

Staff Turnover and Retention

 

Unit

2017

20181

20192

2020

Turnover rate (total)

 

10.7%

13.8%

11.3%

11.8%

Turnover rate 
(voluntary)

 

n.a.

n.a.

8.7%

9.3%

Average number of years of service3

Years

7.7

7.4

7.4

7.3

Durchschnittliches Lebensalter

Years

42.5

42

42

42

  1. Without Tecan Genomics (previously NuGEN Technologies)
  2. Without the acquisition from 2019
  3. Data for Switzerland only
Staff Turnover Rate (2020)

Region

Staff Turnover Rate (total)

Staff Turnover Rate (voluntary)

Switzerland

6.8%

5.8%

Other Europe

7.3%

4.9%

North America

16.2%

13.1%

Asia-Pacific

23.2%

18.0%

 

 

 

Total

11.8%

9.3%

GENDER DIVERSITY AND INCLUSION OF ALL EMPLOYEES

Tecan openly supports diversity and equal opportunities. The respective origin, gender, religion or personal ideology, age or sexual orientation play no role in our recruitment process and in careers in the Company. The Company also supports chronically ill employees and those with a disability, taking efforts to ensure they remain integrated in the workplace as far as possible.

 

In the employee survey conducted by the international research and consulting company Great Place to Work® in 2020, employees particularly valued the areas of diversity and inclusion. Over 90% of employees stated that sexual orientation, skin color or any physical impairment do not lead to any difference in treatment. A high share of 87% stated that employees are treated fairly regardless of their gender.

 

Cultural diversity in the workplace is important because colleagues can gain valuable insights from understanding different cultures and experiences. While sharing different experiences, this allows Tecan as an organization to foster an environment of trust, engagement and collaboration. Tecan therefore welcomed and supported the establishment of the first dedicated ERGs (Employee Resource Group) by employees in the US. Tecan US established the two ERGs to align with Tecan’s vision to drive Inclusion and Diversity engagement by creating and maintaining an environment where all employees feel valued, included and empowered to do their best work. The ERGs are Te-CAAP (Tecan Committee of African American Professionals) and WEW (Women Empowering Women).

 

ERGs are commonly considered a best practice among global companies and are an excellent support system to foster awareness, respect, and inclusion within the workplace. 

The proportion of women in the workforce increased again to 36.1% (2019: 35.7%). The proportion of female managers also increased to 27.4% in the year under review (2019: 25.5%). Two of seven positions on the Board of Directors continue to be occupied by women.

 

To further support the advancement of female managers, Tecan became a member of WeAdvance in 2020. WeAdvance is a network of over 100 companies in Switzerland with a mission to actively increase the proportion of women in management positions at Swiss companies. 

 

In 2020, Tecan also introduced a diversity mentoring program. The purpose of this global program is to embrace, support and empower diversity. The nominated employees have the opportunity to be mentored by senior managers in Tecan. The mentors have been trained to facilitate, support, challenge and give advice for career development.

 

Tecan is committed to “equal pay for equal work”. For new hires the job grading methodology of Willis Towers Watson has been deployed globally with the goal to eliminate any bias related to gender, age, origin, religion or sexual orientation.

 

Gender diversity

 

Unit

2017

20181

20192

2020

Women

in % of all employees

33.0%

33.8%

35.7%

36.1%

Men

in % of all employees

67.0%

66.2%

64.3%

63.9%

Women in management positions

in % of all managers

22.8%

22.4%

25.5%

27.4%

Women in the Board of Directors

No.

2

2

2

2

Women in the Board of Directors

in % of all members

28.6%

28.6%

28.6%

28.6%

  1. Without Tecan Genomics (previously NuGEN Technologies)
  2. Without the acquisition from 2019
Management per Category (2020)

Management by Gender

Share of ­Employees in %

Men

 

  Employee

66.2%

  Management

33.8%

Women

 

  Employee

77.1%

  Management

22.9%

 

Management by 
Gender and Region

Share of ­
Employees in %

 

Management by 
Gender and Region

Share of ­
Employees in %

North America

 

 

Switzerland

 

  Men

60.3%

 

  Men

71.2%

    Employee

78.7%

 

    Employee

46.3%

    Management

21.3%

 

    Management

53.7%

  Women

39.7%

 

  Women

28.8%

    Employee

82.3%

 

    Employee

57.1%

    Management

17.7%

 

    Management

42.9%

Asia-Pacific

 

 

Other Europe

 

  Men

62.4%

 

  Men

60.0%

    Employee

75.4%

 

    Employee

75.7%

    Management

24.6%

 

    Management

24.3%

  Women

37.6%

 

  Women

40.0%

    Employee

87.4%

 

    Employee

83.8%

    Management

12.6%

 

    Management

16.2%

Age Groups (2020)

Age Group

Share in %1

under 30 years old

13.9%

30-50 years old

60.1%

over 50 years old

26.0%

 

Age Group

Share in %1

Men

 

  under 30 years old

13.1%

  30-50 years old

59.3%

  over 50 years old

27.6%

Women

 

  under 30 years old

15.4%

  30-50 years old

61.5%

  over 50 years old

23.1%

  1. Without USA
New Hires

Tecan is an appealing employer. The Company offers products and solutions that help contribute to people's well-being. The end markets benefit from structural growth drivers, the Company is established globally, is of a good size and therefore offers excellent career prospects. The number of employees increased sharply in the past few years, by a further 6.1% in the year under review. 

 

Continued strong growth is also expected in the next few years, which is why the topics of employee recruitment and development as well as employer branding will continue to gain in importance.

Tecan is committed to a fair, transparent and structured recruiting process.

 

Positions are posted and advertised on external career sites as well as on the internal career site on the company’s webpage. Tecan also takes part in job fairs and works with select agencies that are familiar with Tecan’s high standards regarding work ethic and the company’s culture.

 

In the People section of Tecan’s homepage, under “employee insights”, the company shares various short stories directly from staff members which give a unique perspective on the culture, on various areas and specific jobs Tecan offers. 

 

 

New Hire Report (2020)

By Age Group

New Hires in %1

under 30 years old

26.4%

30-50 years old

58.5%

over 50 years old

15.1%

  1. Without USA

By Regions

New Hires in %

Switzerland

19.7%

Other Europe

23.9%

North America

33.5%

Asia-Pacific

22.9%

 

By Gender

New Hires in %

Men

64.4%

Women

35.6%

WELL-BEING AND HEALTH

Tecan concentrates in its production on the final assembly of laboratory instruments and sub-components for equipment. The risk of accidents is very low through this type of production. This also applies to the production processes for both reagents and consumables. Additional preventive measures on occupational safety reduce the risk further. In the Great Place to Work® employee survey conducted in 2020, 91% of employees stated that Tecan is a physically safe place to work.

 

Major accidents are therefore a rare exception. So far there have been no work-related deaths. Most employees do not work in production, but in sales, customer service and various office functions. 

 

The absenteeism rate was below 2% in the year under review. This includes days lost through all accidents, i.e. also non-work-related, as well as all absences due to illness. 

 

Tecan also offers a wide range of healthcare initiatives for its employees, including medical courses and vaccinations. For physical complaints, suitably equipped work stations are provided, such as height-adjustable desks. There is also a wide range of sporting opportunities on offer at various locations. Also, the staff restaurant at Tecan’s headquarters makes an important contribution to promoting the health and performance of the employees. 

 

In 2020, efforts were focused on keeping Tecan associates safe. As COVID-19 started to spread around the world, Tecan quickly adopted a global “work from home” policy and significantly restricted travel. The company also activated its Pandemic Plan and implemented various measures and safety protocols at all sites to protect employees and keep business operations running.

 

Employee Well-Being (2020)*

Absence

Days per Employee

Absence rate

Accidents

1.16

0.4%

Sickness

3.85

1.5%

Grand Total

5.01

1.9%

 

Type of Accidents

Days per Employee

Absence rate

Accidents 
(not work-related)

1.0

0.4%

Accidents 
(work-related)

0.2

0.1%

Grand Total

1.2

0.4%

* Data for Switzerland only

 

COMPANY VALUES

Tecan’s management considers it of key importance to instill the Company’s vision and common values in all its employees and ensure they are put into practice. As a common basis for collaboration, it has great importance in Tecan’s corporate culture.

 

Tecan drafted comprehensive guidelines, common values and principles of conduct for employees, to which the image of the Company is linked as well. The result of this link is the Tecan brand – a key factor for the Company’s success. The building blocks of the Tecan brand are graphically visualized in the “brand house”: the unique selling points for the Company’s positioning in the market, as well as its promise to its customers and the elements of its visual image are built on the foundations of the three core values – trust, highest standards and ambition. Tecan’s inner strength is made up of reliability, highest performance standards for the products and ambitious goals for innovations and process improvements. When it comes to its unique selling points, Tecan sets particular store by the characteristic “leading”. Throughout its corporate history, Tecan has launched many pioneering projects and has played a decisive role in the laboratory automation industry. 

 

The brand house has firmly established itself in Tecan’s day-to-day routine, with the various elements having been integrated into, for example, year-end process and employee meetings as part of their performance review.

 

Two years ago, Tecan has started a comprehensive culture journey to further strengthen its leading and pioneering role in the industry. A key element to drive and develop Tecan’s culture together with its employees and create a common understanding of the corporate culture, the company conducts regular workshops with different departments and at its sites globally. In addition to an overall alignment on the important pillars of the corporate culture, concrete and specific actions are defined in separate breakout sessions.

 

SOCIAL RESPONSIBILITY

Tecan attaches great importance to good cooperation with the people and authorities where it does business. The Company also supports various projects serving the common good at its various locations. 

 

As part of the 40 year anniversary celebrations, the company created the "Tecan Gives Back" campaign.

 

Based on employee suggestions, Tecan chose four charities whose work is aligned with its own mission to accelerate the discovery of disease mechanisms and the development of novel treatments. Tecan made a financial contribution, but the amount was also linked to the personal commitment of the employees. In teams of four, employees could run, walk, jog, or hike the whole month of September. For each 40 km completed as a team, a coin was donated to one of the four pre-selected charities.

 

The four charities supported with a total amount of CHF 60,000 in the "Tecan Gives Back" campaign are aligned with Tecan’s own mission.

NF Kinder, an Austrian foundation established in 2014, was the first charity chosen. The organization supports people affected by the genetic condition neurofibromatosis. In addition to direct support for patients and their families, the foundation also works to raise awareness of the disease and contributes to the international battle against it.
www.nfkinder.at

The second charity was the World Ovarian Cancer Coalition, which works to improve survival rates and the quality of life for women suffering from ovarian cancer, wherever they are in the world. They currently have partners in 47 countries, all working to increase understanding of the disease and drive improvements such as earlier diagnosis and better access to information and support.
worldovariancancercoalition.org

The Elizabeth Glaser Pediatric AIDS Foundation, the third charity, does important work in the fight against HIV and AIDS. Their mission is to enable every child to live a full and healthy life into adulthood. They have been doing this for over 30 years and have become a leading advocate for the health and wellbeing of children in the world’s most affected regions.
www.pedaids.org

The fourth charity that will benefit from the "Tecan Gives Back" initiative is the Leukemia & Lymphoma Society. Their mission is to create a world without blood cancers and they are the largest non-profit organization dedicated to the cause.
www.lls.org

EMPLOYEE ENGAGEMENT AND SATISFACTION

Tecan had measured and analyzed the satisfaction of its employees on a regular basis by means of anonymous, Internet-based surveys. The results helped management gain a better understanding of what constitutes employee satisfaction and how staff can be motivated. The survey results also formed the basis for cultural development activities. 

 

In order to continue to improve in an even more targeted manner, for the first time in 2020 Tecan conducted the TrustIndex™ employee survey by the international research and consulting company Great Place to Work®. The Trust Index™ is an employee survey that provides the basis for the analysis and further development of the workplace culture. Thanks to anonymity, employee feedback is honest and response rates are very high. The Great Place to Work® methodology is centered around trust, the key to maximizing the potential of all employees. Trust – particularly the relationship of trust between employees and leadership – remains the most important asset in today‘s working world. The survey evaluates six factors: mutual trust as the basis of the workplace culture, the values lived within the organization, leadership effectiveness, the extent to which all employees are able to maximize their potential and the resulting innovative power and added value. After an additional Culture Audit™, organizations can be certified as a Great Place to Work® if they meet 65% of the minimum criteria. In January 2021, Tecan has been officially certified as a Great Place to Work® with a Trust Index© result of 70% (average acceptance rate of questionnaire statements). The certification is valid for one year.

 

Overall, 75% of all respondents said: Tecan is a great place to work – a very good score for the first survey of this kind and above the benchmark of other Swiss companies. 

 

Tecan scored particularly well in areas related to safety at the workplace and fair treatment regardless of race, age, gender, disability, different sexual orientation. Also, a very high proportion of employees is proud to tell others where they work. New hires felt very welcomed when they joined the organization.

 

One of Tecan’s corporate values is "ambition" and therefore, the aspiration for future surveys is to further substantially increase the trust-based workplace culture. To continuously improve based on the findings, management will focus, amongst other things, on increased internal communications, including the broad communication of the survey results and the resulting measures as well as on a greater participation of employees in decision-making processes and the subsequent implementation. 

 

CAREER DEVELOPMENT, BASIC AND CONTINUING TRAINING

Tecan’s strategy is centered around people. One of the strategic initiatives is to build, empower and strengthen people in order to achieve their maximum potential. 

 

Via the Learning@Tecan program Tecan offers a wide range of trainings built upon its values trust, highest standards and ambition. Trainings are offered both internally or externally and they are conducted in various forms such as instructor-led, virtual, self-learning, bite-sized learning and many more.

 

Employees may choose from a variety of courses around topics like Leadership, Culture and Diversity, Technical Skills, Selling & Negotiating and IT tools. In total, approximately 45 different types of trainings were offered in 2020, a number that has been increasing from year to year.

 

The Learning@Tecan Program constantly evolves to meet the changing needs of employees and the organization. It is also adapted to the local needs across the different sites and organizations around the globe. 

 

In addition, Tecan focuses on developing its top talent and future leaders through the global talent management program Next Gen Tecan, initiated in 2020. The aim of this 18 months talent program is to offer nominated employees a broad experience within Tecan. In addition to workshops focused on different aspects of personal and professional development, it comprises a personal mentoring from one of the Management Board members. 

 

The second phase provides an opportunity to get to know Tecan better, including deep dives in different departments, sites and regions. The third phase is focusing on concrete projects, each sponsored by members of the Management Board.

 

To foster personal growth and career development, Tecan maintains a mentoring program that is available to all employees. In addition to the general program, special programs such as diversity mentoring are offered. By connecting two people with different backgrounds, the mentee can learn from the experiences of the mentor. The mentoring program can also help employees in meeting their career goals, get practical advice, encouragement or support and develop further own capabilities and personal skills. Overall, it supports networking within the company and has a positive cultural impact. It improves leadership and social competencies.

 

Tecan operates in highly regulated markets like the diagnostic sector. Therefore ongoing professional and continuing training is a key requirement critical to business. Due to strict industry-specific requirements, Tecan must comply with requirements and guidelines set forth by various supervisory authorities and must also demonstrate that its employees possess the required knowledge. In the year under review, Tecan again invested significantly in basic and continuing training. Aided by an SAP-based system, Tecan ensures that training processes are carried out to a sufficient standard throughout the Company. Each individual employee receives a personalized training profile. This enables employees and line managers to check and update the current training status. It also ensures that information on training levels is available electronically at all times for audits. Tecan is working continuously to develop and improve this learning system. It should provide an effective performance record and offer employees the best possible training opportunities.

 

In countries employing a dual education system, Tecan instructs trainees from various vocational and professional groups.

 

Investments in basic and continuing training

 

 

Unit

2017

2018

2019

2020

Investments in basic and continuing ­training1

CHF 

481,694

574,971

642,109

655,415

Investments in basic and continuing ­training1

CHF per employee

981

1,083

1,095

1,051

  1. Data for Switzerland only
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