Better Health for All

LivaNova's core business is medical technology, providing cardiovascular and neuromodulation solutions like VNS Therapy for epilepsy and depression, and systems for acute respiratory and cardiopulmonary failure.

These products are designed to deliver exceptional health benefits, with the entire business devoted to health improvement. However, the company has faced significant safety issues, including an FDA Class I recall in January 2023 for 589 units of its LifeSPARC system due to a software malfunction that could cause the blood pump to stop, leading to serious injury or death, with 66 complaints and 2 reported injuries. Additionally, two Class 2 recalls for VNS Therapy generators were initiated in December 2024 and January 2025, affecting at least 46 units, due to internal component issues that could cause the devices to stop delivering therapy, potentially requiring replacement surgery. The company also disclosed a cybersecurity incident in November 2023, where an unauthorized party obtained identifiable personal and medical information of U.S. patients, including Social Security numbers, dates of birth, and health insurance details. LivaNova's adjusted R&D was approximately 16% of sales in 2021, indicating substantial investment in health innovation. The company has programs like the LIFE program, which in 2022 donated heart-saving equipment and supported cardiac surgery missions for children in 15 heart centers in various countries. LivaNova also supports healthcare workforce development through competitive compensation, benefits, and training programs. The company's Third Party Code of Conduct encourages environmental responsibility and proper handling of hazardous materials, and LivaNova has committed to achieving net zero carbon emissions by 2050.

Fair Pay & Worker Respect

LivaNova's CEO to median employee pay ratio was 84 to 1 in 2022.

The company regularly conducts employee engagement surveys, with the 2023 LivaNova4You survey showing an increase in overall employee engagement and satisfaction since 2021, with over 90% of employees completing the survey. In the 2021 survey, the company achieved 89% participation, with an increase in employee satisfaction, motivation, and overall engagement index compared to 2020. The company monitors and externally benchmarks compensation and benefits policies and practices annually to ensure alignment with fair pay standards. The Compensation and Human Capital Management Committee oversees policies and strategies related to human capital management, including pay equity and employee engagement.

Honest & Fair Business

LivaNova has a comprehensive Business Integrity Policy, last updated in December 2022, which applies globally to all employees, contractors, and business partners.

This policy explicitly prohibits bribery, corruption, and fraud, including facilitation payments with limited exceptions. The company provides employee training and conducts spot monitoring to ensure compliance. A 24/7 third-party Ethics Helpline is available via phone, web, and email, offering anonymity where allowed by law, and a strict non-retaliation policy is in place. Ethics Helpline metrics and critical cases are reported quarterly internally. The Corporate Governance Guidelines state that a majority of directors must meet Nasdaq independence criteria, indicating that at least 60% of the board is independent.

Kind to Animals

LivaNova conducts pre-clinical trials of its drugs on animals, as evidenced by the use of a 60-day animal model for the CROWN PRT aortic valve.

While animal testing was not required or submitted for specific device approvals like the modified Sorin CONNECT or the B-Capta, this does not indicate a company-wide ban on animal testing. The company's Third Party Code of Conduct, last updated in January 2022, requires third parties involved in clinical research or testing to adhere to international and national guidelines, laws, and regulations governing animal research, and to treat animals humanely. This policy focuses on compliance with existing regulations rather than a proactive ban or strong restriction on animal testing.

Planet-Friendly Business

LivaNova's total Scope 1, 2, and 3 greenhouse gas emissions were 766.58 tCO₂e in 2024.

The company has set near-term targets for 2033, with Scope 1 and 2 targets aligned with a 1.5°C warming pathway and Scope 3 targets aligned with a well-below 2°C pathway. However, these targets are not explicitly stated as SBTi-validated. The company has a net-zero target year of 2050. Four of its six global manufacturing sites (Gloucester, Houston, Munich, Melbourne) sourced 100% of their electricity from renewable energy in 2024. The Gloucester office has maintained zero waste to landfill since December 2017, and the Mirandola manufacturing site achieved a 91% waste diversion rate, while Munich achieved 67%. Various product packaging contains certified recycled content, ranging from 45% to over 90% for different product lines, and external fiber-based packaging suppliers are FSC, PEFC, or SFI certified.

Safe & Smart Tech

LivaNova experienced a data breach in October 2023, with unauthorized access occurring on October 26, 2023.

The incident was identified on November 19, 2023, but confirmation of personal and protected health information exfiltration occurred on April 10, 2024, with public disclosure on April 25, 2024. This breach impacted 180,000 U.S. patients, with 2.2 terabytes of data stolen, including names, Social Security numbers, medical information, and health insurance details. The company incurred $2.6 million in costs in Q4 2023 due to the incident and offered two years of free identity protection and credit monitoring services. LivaNova's Code of Ethics states a commitment to responsible and transparent AI use, requiring vetting and pre-approval from IT, CISO, and Legal functions for AI systems. The company has a coordinated vulnerability disclosure program and its privacy policy indicates that data is retained for the period reasonably necessary. LivaNova is subject to various privacy laws globally, including HIPAA, CCPA, and GDPR. Its Mirandola, Italy, and Munich, Germany, plants hold ISO 14001 certifications, with Mirandola also having ISO 45001.

Zero Waste & Sustainable Products

LivaNova has embedded sustainability and carbon-risk assessments into its product development procedures since 2024, indicating circular design principles are standard in product development.

The company has implemented multiple waste reduction initiatives, including a global 3R (reduce, reuse, recycle) plan for packaging since 2024. LivaNova UK Limited operates an Environmental Management System (ISO 14001:2015), re-certified in June 2023, and manufacturing sites in Italy and Germany are also ISO 14001 certified. The company has not received any FDA warning letters in FY22, FY23, and FY24, and no waste disposal violations in the past three years. LivaNova conducts annual waste audits for its major facilities, submitting an ESOS assessment and energy savings recommendations to the UK Environment Agency in June 2024. The Mirandola manufacturing site achieved 91% Zero Waste to Landfill, and the Munich site achieved 67%. LivaNova has a company-wide target for zero waste to landfill for manufacturing sites and a 2050 net zero carbon goal, with a Carbon Reduction Plan outlining progress. The company engages high-risk suppliers in educational workshops on quality management systems and production process controls. LivaNova also provides sustainability presentations to customers.