;

Responsibly Managing our

Environmental Impact

Our dedication lies in understanding our impact and continuously improving ways to minimize it.

ENVIRONMENTAL STEWARDSHIP
RESPONSIBLE SUPPLY CHAIN PRACTICES

Environmental Stewardship

As a medical technology company that is relentlessly focused on improving the health of our patients, we are also committed to sustaining a cleaner, healthier planet for future generations. Central to that commitment is gaining a better understanding of our impact on the environment and utilizing our culture of continuous improvement to identify opportunities to minimize and reduce that impact.

Since 2023, we have partnered with a third-party advisor to collect and analyze our energy usage on an enterprise-wide basis and reported our Scope 1 and Scope 2 greenhouse gas (GHG) emissions. In 2025, we continued to enhance our reporting efforts.

The tables below contain a summary of our primary environmental metrics for 2025, along with a comparison to our 2024 data.

GHG Emissions (Market-Based1)

Metric Tons CO2e*
2025
2024
% Change YOY
Scope 1**
2,128.56
2,200.05
(3.20)
Scope 2***
17,023.33
16,208.50
5.00
Combined Emissions
19,151.89
18,408.55
4.00

1 Emissions factor based on specific energy provider and corresponding energy generation methods and instruments, including renewable energy.

* Reported amounts for 2025 and 2024 have been adjusted to exclude emissions from the Company’s Mequon, WI facility, which was divested in 2025 as part of the sale of the Company’s Dr. Comfort business.

** Scope 1 emissions are direct emissions from owned or controlled sources (e.g., consumption of natural gas at operating facilities).

*** Scope 2 emissions are indirect emissions from the generation of purchased energy.

GHG Emissions Intensity

Emissions Intensity*
2025
2024
% Change YOY
Scope 1 Intensity
0.95
1.14
(16.67)%
Scope 2 Intensity
7.57
7.05
7.38%
Combined Intensity
8.52
8.19
4.03%

* Calculated as metric tons of CO2e divided by FY GAAP revenue (millions USD).

2025 Natural Gas Usage (primary source of Scope 1 emissions) kilowatt hours

2025 Electricity Usage (primary source of Scope 2 emissions) kilowatt hours

Assessing and Minimizing Our Impact

Below are some representative examples of actions our businesses have taken over the past several years to improve energy efficiency and reduce our costs and emissions.

U.S. Surgical

  • Converted a large section of operational floor space to LED lighting
  • Received recognition from the City of Austin for exemplary wastewater management through its Excellence in Pretreatment Award. This accolade honors Significant Industrial Users (SIUs) that demonstrate outstanding environmental stewardship by proactively preventing pollution and effectively managing wastewater discharges.

Foot & Ankle

  • Installed three new, energy efficient AC units covering the entire facility
  • Installed motion sensor lights in the warehouse and all office areas

International Surgical

  • Tripled the output and energy usage from photovoltaic (solar) power plant
  • Converted large sections of manufacturing area to LED lighting

Bracing & Supports

  • Converted manufacturing areas to programmable LED lighting
  • Installed sensors to monitor compressor demand and reduce air leaks
  • Added recycling stations to collect and recycle paper
  • Partnered with a new vendor to convert 80% of hazardous waste to fuel
  • Standardized processes to monitor and control HVAC thermostat settings
  • Launched a pallet‑reuse project to reduce discarded pallets

Bracing & Supports

  • Converted large sections of production space to LED lighting
  • Established a process to closely monitor and control HVAC thermostat settings
  • Replaced older company cars with new energy efficient models

Responsible Supply Chain Practices

We expect and require our business partners to conduct their businesses with the same commitment to ethics and compliance that we do. Our Code of Conduct for Business Partners sets forth our expectations and standards for any agents, distributors, dealers, contractors, intermediaries, joint venture partners, suppliers and other business partners working with us. Among other things, the Code of Conduct for Business Partners addresses compliance with law, labor and human rights (including child labor and forced labor) and health, safety and the environment.

Our supplier quality assurance program includes an intensive qualification process with our personnel visiting supplier sites. After supplier selection and qualification, ongoing relationships are managed via scorecards. We target suppliers who are focused on lean initiatives. Supplier selection is based on the ability to reduce cost, lead times and freight, and eliminate non-value-added processes that may be in the supply chain. Suppliers are expected to bring new ideas and opportunities to grow their partnerships with us, and to obey laws that provide a safe and healthy workplace for their team members and protect our environment.

In addition, our Anti-Slavery and Human Trafficking Statement further demonstrates our commitment to respecting human rights across our business operations in accordance with the Universal Declaration of Human Rights, the UN Guiding Principles on Business and Human Rights and the ILO Declaration on Fundamental Principles and Rights at Work.

GLOBAL HUMAN RIGHTS POLICY

We remain committed to conducting business at the highest level of responsible and ethical standards and in compliance with applicable laws, we have adopted an enterprise-wide Global Human Rights Policy, which applies to all team members, as well as any agents, distributors, dealers, contractors, intermediaries, joint venture partners, suppliers and other partners doing business with us. The policy is informed by the International Bill of Human Rights, the OECD Guidelines for Multinational Enterprises, the United Nations Guiding Principles on Business and Human Rights, the Ten Principles of the United Nations Global Compact and the International Labor Organization’s Declaration on Fundamental Principles and Rights at Work. The policy includes a mechanism for reporting concerns and addresses, among other things:

  • Expectations with respect to fair treatment of team members and equal opportunity
  • Prohibition on the uses of forced labor, human trafficking and child labor
  • Compliance with applicable wage and hour laws
  • Freedom of association
  • Health and safety (including access to safe drinking water)

CONFLICT MINERALS

We are committed to ensuring a conflict-free supply chain and support efforts to increase transparency in the supply chain. We comply with the requirements of the US Securities and Exchange Commission (SEC) regarding conflict minerals and file a Conflict Minerals Disclosure Report with the SEC on an annual basis. As part of our conflict minerals compliance program, we conduct robust due diligence measures that conform with, in all material respects, the criteria promulgated by the Organization for Economic Cooperation and Development. We maintain a Conflict Minerals Policy that is applicable to all of our suppliers. The policy sets forth detailed supplier requirements and expectations, as well as a process to report concerns, grievances or violations.