Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Responsibility
• Social Responsibility
• Business Ethics (Anti-corruption)

Environmental Achievements

• Reduced transport-related CO2 emissions by 13% in 2014 (20% reduction target by 2016 compared to 2011).
• Reduced electricity consumption by 7% per employee at headquarters in Lund.
• Approximately 65% of Axis network cameras and encoders are PVC-free as of 2014.
• Introduced a network camera with recyclable plastic.

Social Achievements

• Participated in Great Place to Work® surveys in Sweden, USA, and Germany, achieving top rankings.
• Launched a Quality of Life program for employees in South America.
• Celebrated 30th anniversary with 'Giving Back' initiatives globally (e.g., school libraries in China, storybooks in Czech Republic, camera installations in Spain, Ice Bucket Challenge donations in the US).

Governance Achievements

• Continued implementation of the anti-corruption program started in 2013, including training for all employees and distributors.

Climate Goals & Targets

Environmental Challenges

• Systematic overview of environmental impacts throughout the value chain.
• Increasing awareness among suppliers regarding sustainability.
• Maintaining a safe workplace while experiencing rapid growth.

Mitigation Strategies

• Life cycle analyses of selected camera models.
• Online webinars through the Axis Supplier Academy program.
• Improved occupational risk assessment methodology in Lund.

Supply Chain Management

Supplier Audits: 82% of suppliers audited on-site; 96% of suppliers with significant impact on Axis’ environmental and sustainability aspects have been approved through an Axis audit or are certified to ISO14001.

Responsible Procurement

• Supplier Code of Conduct (covering environmental protection, occupational health and safety, human rights, child labor, and corruption)
• Regular audits of suppliers
• Webinars for suppliers through Axis Supplier Academy

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4 (Core option)

Sustainable Products & Innovation

• PVC-free cameras
• Camera manufactured using recycled plastic

Environmental Metrics

ESG Focus Areas

• Economic responsibility
• Responsible business conduct
• Environmental responsibility
• Social responsibility

Environmental Achievements

• Phased out PVC from more camera models (AXIS M2026, AXIS P3327 series variants, AXIS Q3517 series)
• Initiated improvements regarding energy consumption in product use phase
• New carbon offsetting project in Uganda for forestry development
• New goals for supplier audits
• Tightened Supplier Code of Conduct
• 93% of network camera and encoder sales were PVC-free

Social Achievements

• Almost all employees renewed anti-corruption agreement and received training
• Global partner survey showed 82% highly satisfied with Axis
• New global diversity policy drawn up
• New goals adopted for anti-discrimination, workplace health & safety, equality & diversity
• Initiatives to train women in technology and promote interest among girls

Governance Achievements

• Updated insider policy adopted by the board
• Initiated work on ISO27001 information security certification

Climate Goals & Targets

Environmental Challenges

• Longer delivery times for electronics components due to good market situation
• Increased focus on cybersecurity due to digitalization
• Global trends and challenges related to sustainability
• Supplier market consolidation leading to longer delivery times
• Handling the conflict between society's need for security and companies' need to understand customer behavior

Mitigation Strategies

• Careful planning of sourcing
• Focused strategy, additional resources, and structured process for IT security
• Integrated sustainability into operations
• Audits and training to ensure new supplier requirements are followed
• Open and transparent communication to earn customer trust

Supply Chain Management

Supplier Audits: Regular audits; 120 of 269 suppliers considered to have major impact on Axis from a sustainability perspective

Responsible Procurement

• Supplier Code of Conduct (based on Axis' Code of Conduct and UN Global Compact principles); requirements for ISO 14001 certification or equivalent management system; self-assessment questionnaires; audits; training in Axis Supplier Academy

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters and accidents affecting Axis, suppliers, distributors, or partners

Transition Risks

• Market development and competitive situation; risk of obsolete technology

Opportunities

• Development of energy-efficient products and solutions

Reporting Standards

Frameworks Used: GRI Standards: Core option, UN Global Compact

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Axis supports the UN's Sustainable Development Goals

Sustainable Products & Innovation

• PVC-free camera models; products with recycled plastic; energy-efficient products and solutions

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Economic responsibility
• Responsible business conduct
• Environmental responsibility
• Social responsibility

Environmental Achievements

• Several new PVC-free models were developed (95% of network camera and encoder sales were PVC-free)
• Completed a project to develop products that are BFR- and CFR-free
• Initiated a new carbon offset project for tree planting in northern Nicaragua
• Reduced CO2 emissions from transports by 4.4 percent compared to 2017 (measured in kg CO2 per sold unit)
• Reduced electricity consumption per employee at the headquarters by 8 percent

Social Achievements

• Launched a comprehensive program for diversity and inclusion in North America, including a diversity and inclusion committee, employee training, Women in Security conference, and collaboration with the Security Industry Association (SIA)
• Initiatives for greater equality and diversity such as increased awareness in the recruitment process and fighting discrimination
• A number of initiatives for an improved working environment such as stress management training, a new working hours policy with increased flexibility, and health initiatives

Governance Achievements

• Proactive and systematic work for strong IT security
• GDPR Awareness training for all employees
• Continual work on fighting corruption

Climate Goals & Targets

Environmental Challenges

• Market development and competitive situation
• Political risks (political instability and acceptance of camera surveillance)
• Risks in the supply chain related to environmental impacts, working conditions, human rights, and corruption
• Environmental risks (operations’ environmental impact, product environmental impact, hazardous material, energy consumption)
• Material shortages
• Quality and product safety
• Technical risks (defects in Axis IT and business systems, IT security, personal integrity)
• Legislation connected to export control
• Intellectual property risks
• Business ethics (corruption and unethical context)
• Risks connected to the workplace, employees, and supply of talent (corporate culture, talent supply, lack of diversity, equality, and discrimination, occupational health and safety)

Mitigation Strategies

• Well-insured and effective processes in place for natural disasters and accidents
• Broadening customer offering through acquisitions and innovative product development for market development
• Careful competitive intelligence, capable global sales force, close collaboration with partners, and vigorous product development for competitive situation
• Closely following developments in countries where Axis operates for political instability
• Continually monitoring legislation and communicating the benefits of camera surveillance for acceptance of camera surveillance
• Regular satisfaction surveys for customer satisfaction risk
• Active work with business ethics, IT security, and compliance for reputation risk
• Supplier Code of Conduct, supplier audits, and employee and partner training for supply chain risks
• Structured process for ensuring that minerals used are not conflict minerals for conflict minerals
• Environmental policy, employee awareness, streamlined logistics, and carbon offsets for environmental risks
• Working with several subcontractors and agreements with production partners for material shortages
• Well-developed process for handling product defects for quality and product safety
• Proactive and systematic approach for strong IT security for technical risks
• Export Control Compliance Policy and program for legislation connected to export control
• Active patent strategy for intellectual property risks
• Code of Conduct, anti-corruption policy, whistleblower function, and training for business ethics
• Careful choice of partners and informing partners for unethical context
• Careful recruitment process, good career and training opportunities, and competitive working conditions for risks connected to the workplace

Supply Chain Management

Supplier Audits: Regular audits of suppliers

Responsible Procurement

• Supplier Code of Conduct (based on Axis’ Code of Conduct and the UN Global Compact’s ten principles)
• Self-assessment questionnaires for new suppliers
• Thorough supplier audits (first-tier, contract manufacturers, and second-tier component suppliers)

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters and accidents

Transition Risks

• Market development and competitive situation
• Political risks
• Environmental risks
• Legislation connected to export control

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards Core option, UN Global Compact

Certifications: ISO 14001 (in progress)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• 1
• 3
• 4
• 5
• 6
• 7
• 8
• 10
• 11
• 12
• 13
• 14
• 15
• 16
• 17

See pages 64-65 of the report for details on how Axis initiatives contribute to these goals.

Sustainable Products & Innovation

• PVC-free camera models
• BFR/CFR-free products
• Products with recycled plastic

Environmental Metrics

ESG Focus Areas

• Economic responsibility
• Responsible business conduct
• Environmental responsibility
• Social responsibility

Environmental Achievements

• Lowered CO2 emissions from operations during the year from 36,704 (2018) to 35,014 tons CO2e
• Launched several new PVC-free cameras and the two first cameras that are entirely BFR/CFR-free
• Reduced CO2 emissions from transports by 8.9 percent to 3.71 kg CO2 per sold unit

Social Achievements

• Compulsory training in anti-corruption was provided for all employees in 2019
• A new goal was set for employee wellness, which is to promote and support healthy and sustainable living
• Overall Customer Satisfaction Index (CSI) was 77 (max 100)

Governance Achievements

• Developed a new code of conduct, with the aim of clarifying the company’s values and ethics.
• Achieved ISO 27001:2013 information security standard certification
• No incidents of bribery or other forms of corruption were reported during the year

Climate Goals & Targets

Environmental Challenges

• Downward pressure on prices from competitors in Americas
• Successful expansion into new areas like access control, audio and intercom in Americas
• Growth in EMEA didn't live up to expectations due to regional fragmentation

Mitigation Strategies

• Strengthened presence in existing markets by hiring additional employees
• Continued pursuing its strategy of working more closely with customers in Americas
• Continued focus on end-to-end solutions and expanding its offering beyond camera solutions in EMEA

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Axis supplier code of conduct

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters and accidents

Transition Risks

• Market development and competitive situation
• Political risks

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 27001:2013

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 1
• Goal 3
• Goal 4
• Goal 5
• Goal 6
• Goal 7
• Goal 8
• Goal 9
• Goal 10
• Goal 11
• Goal 12
• Goal 13
• Goal 14
• Goal 15
• Goal 16
• Goal 17

Axis actively strives to make a positive contribution towards achieving these goals through its sustainability efforts.

Sustainable Products & Innovation

• PVC-free cameras
• BFR/CFR-free cameras
• Energy-efficient products utilizing Axis Zipstream technology and Axis Lightfinder technology

Awards & Recognition

• Great Place to Work in Middle Europe

Environmental Metrics

ESG Focus Areas

• Economic responsibility
• Responsible business conduct
• Environmental responsibility
• Social responsibility

Environmental Achievements

• Reduced total CO2 emissions from 35,014 to 30,197 tons CO2e (approximately 14% decrease)
• 34 percent of all cameras launched were BFR- and CFR-free
• New head office building obtained BREEAM environmental certification with an 'Excellent' rating

Social Achievements

• Launched new social goals focusing on diversity and inclusion, employee health and safety, and positive contributions to local communities
• Favorable results from employee satisfaction surveys, ranking Axis as a very good workplace
• Improved gender balance among managers (from 29% women to 30%)

Governance Achievements

• Implemented a new global code of conduct
• Established a group-wide Business Ethics Council
• Conducted training on privacy and ethics

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting business operations and supply chains
• Market slowdown in the Asia Pacific region due to strict COVID-19 restrictions
• Increased cybersecurity threats

Mitigation Strategies

• Comprehensive measures to ensure employee health and safety and business continuity during the pandemic
• Strengthened global sales organization to better meet customer needs
• Proactive and systematic efforts to strengthen IT system security and product IT security

Supply Chain Management

Supplier Audits: All new suppliers in 2020 were screened using self-evaluation forms; on-site and off-site audits conducted due to COVID-19

Responsible Procurement

• Axis supplier code of conduct based on UN Global Compact principles
• Requirements on working hours based on Responsible Business Alliance’s code of conduct
• ISO 14001 certification or equivalent environmental management system

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters and accidents affecting Axis, suppliers, distributors, or partners

Transition Risks

• Laws and regulations concerning carbon dioxide emissions
• Changed customer attitudes and purchasing patterns

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards: core option, UN Global Compact

Certifications: ISO/IEC 27001:2013 Information Security

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 1
• Goal 2
• Goal 3
• Goal 4
• Goal 5
• Goal 6
• Goal 7
• Goal 8
• Goal 9
• Goal 10
• Goal 11
• Goal 12
• Goal 13
• Goal 14
• Goal 15
• Goal 16
• Goal 17

Axis strives to contribute to the SDGs through its business operations, supply chain management, and community engagement initiatives.

Sustainable Products & Innovation

• Network cameras with reduced energy consumption (Lightfinder technology)
• BFR/CFR-free cameras
• Cameras with recycled plastic

Awards & Recognition

• Lund Municipality award for bicycle initiative

Environmental Metrics

ESG Focus Areas

• Human rights
• Climate change
• Anti-corruption
• Occupational health and safety
• Diversity and inclusion
• IT security
• Customer privacy

Environmental Achievements

• Launched first camera containing bio-plastics
• Increased the number of BFR/CFR free products
• Reduced packaging volume by 35% for one sales unit and 89% for another
• Reduced plastics used in packaging for a particular sales unit by 70%

Social Achievements

• Adopted a new group anti-corruption policy and provided anti-corruption training to all Axis representatives
• Carried out a human rights impact assessment and initiated a human rights due diligence project
• USA operations ranked #1 according to Great Place to Work Fortune Best Workplaces in Manufacturing & Production (Small and Medium)
• Japan, Singapore, and Australia added to the list of countries where Axis is a Great Place to Work certified

Governance Achievements

• Axis was approved as a Common Vulnerability and Exposures (CVE) Numbering Authority (CNA) for Axis products
• Prepared and submitted an application for extended ISO27001 certification (approved in December)

Climate Goals & Targets

Environmental Challenges

• Global component shortage resulting in longer lead times for production and delivery
• Increased employee turnover
• Increased CO2 emissions from operations per sold unit and from transports
• Increased electricity consumption per employee at headquarters

Mitigation Strategies

• Strong customer focus and efforts from colleagues to maintain good position
• Initiated human rights due diligence project
• Implemented MFA for all MyAxis accounts
• Investigation to identify 'hot spots' for energy consumption and develop action plan

Supply Chain Management

Supplier Audits: 30/year

Responsible Procurement

• Axis supplier code of conduct
• Screening of new suppliers for quality, price, ethics, environmental impact, and human rights
• Audits of existing suppliers at least every three years

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: ISO/IEC 27001

Sustainable Products & Innovation

• AXIS P3818-PVE, AXIS Q1656, AXIS Q1656-LE (containing renewable carbon-based plastics)

Awards & Recognition

• #1 ranking in Fortune Best Workplaces in Manufacturing & Production (Small and Medium)

Environmental Metrics

ESG Focus Areas

• Human rights and working conditions in the supply chain
• Anti-corruption
• Health and safety in the workplace
• Diversity and inclusion
• Positive contributions to local communities
• Power usage in Axis products and solutions
• Emissions from transports, Axis operations and suppliers
• Use of natural resources/materials in Axis products
• Use of hazardous substances in Axis products
• Customer health and safety
• IT security
• Human rights, including privacy during usage

Environmental Achievements

• Increased use of renewable energy sources
• Reduced CO2 emissions from transports by 8% compared to 2021
• Doubled total consumption of renewable carbon-based plastics from 51.5 to 100 metric tons
• 65 percent of all cameras launched in 2022 were BFR/CFR-free
• Approximately 90 percent of Axis network cameras and encoders launched in 2022 were PVC-free

Social Achievements

• Implemented a new whistleblower program
• Significant increase of gender diversity among both managers (33 percent women) and employees (29 percent women)
• Axis employees across the Americas spent over 3,300 hours volunteering with local communities
• Slightly decreased employee turnover (0.6%)

Governance Achievements

• Published a new Group Anti-Corruption Policy
• 90 percent of Axis representatives completed anti-corruption training
• Extended the scope for its ISO/IEC 27001 certification to include the development and operation of its software platform for connected services

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions and delivery times due to the after-effects of the COVID-19 pandemic, combined with global political and economic uncertainties
• Increased work-related accidents due to employees returning to the office after working from home
• Increased electricity consumption per FTE in 2022 due to employees returning to the office
• Targeted cyberattack in the beginning of 2022
• Limited renewable carbon materials that fulfill technical requirements, especially the strict UL standards

Mitigation Strategies

• Implemented several improvements, including an adjustment of all ventilation systems and changing all lights to LED to reduce energy consumption
• Implemented several changes after the cyberattack to protect data
• Working with current suppliers or finding new partners to source alternative options for hazardous materials
• Improving the methodology for mapping renewable carbon plastic content within products, as well as setting up training for the Axis R&D organization

Supply Chain Management

Supplier Audits: 12/year

Responsible Procurement

• Axis Supplier Code of Conduct
• Supplier self-evaluation questionnaire
• Audits every three years or when required

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO/IEC 27001

Sustainable Products & Innovation

• Products with renewable carbon-based plastics
• Products with reduced energy consumption due to technologies like Lightfinder and Zipstream

Environmental Metrics

ESG Focus Areas

• Human rights
• Climate change
• Environmental sustainability
• Diversity and inclusion
• Anti-corruption

Environmental Achievements

• Increased share of cameras with renewable carbon-based plastic
• Increased share of BFR/CFR free cameras

Social Achievements

• Improved capabilities for customers to manage energy consumption in Axis products
• Enhanced anti-corruption awareness, including training for employees with over 90 percent completion rate
• Decreased number of reported workplace accidents to 13 from 22 in 2022
• Decreased illness-related absences from 4 percent in 2022 to 3.6 percent in 2023
• Decreased employee turnover to 6.4 percent from 10.5 percent in 2022

Governance Achievements

• Progress within human rights due diligence, including mapping of salient human rights risk areas
• Greenhouse gas emissions targets submitted to the Science Based Targets initiative

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions
• Potential misuse of products to violate privacy
• Global macroeconomic situation with higher interest rates and geopolitical issues affecting the video surveillance industry

Mitigation Strategies

• Analyzing prominent human rights risk areas in the value chain and providing clarity in customer communications
• Developing a comprehensive human rights due diligence framework
• Implementing a risk management framework
• Focusing on long-term approach and proven ability to develop business operations despite challenging market conditions

Supply Chain Management

Supplier Audits: 28 existing suppliers reaudited in 2023

Responsible Procurement

• Axis Supplier Code of Conduct
• Regular audits
• Onboarding process for new suppliers including screening against requirements

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards, UN Global Compact

Certifications: ISO/IEC 27001:2022

Sustainable Products & Innovation

• AXIS M4327-P (73% recycled plastic)
• AXIS Q1805-LE (65% bio-based plastic)