Climate Change Data

Environmental Metrics

ESG Focus Areas

• Hearing protection
• Employee well-being
• Supplier Code of Conduct
• Anti-Corruption Policy
• Quality Policy
• Environmental impact minimization

Environmental Achievements

• Minimized environmental impact in day-to-day office work through energy and resource conservation.

Social Achievements

• Low staff turnover (5.0%).
• Diverse workforce reflecting customer base.
• Health insurance and support for sports and physical activities for employees.
• Implementation of Code of Conduct and Anti-Corruption Policy for key suppliers.

Governance Achievements

• Compliance with the Swedish Code of Corporate Governance.
• Established four key policies: Quality Policy, Code of Conduct, Supplier Code of Conduct, and Anti-Corruption Policy.
• Regular audits of major suppliers.

Climate Goals & Targets

Environmental Challenges

• Uneven order flow and sales due to long lead times in procurement processes.
• Market risk from legislation and political decisions.
• Fluctuations and volatility in demand.
• Competition in the market.
• Ability to manage growth.
• Dependence on key personnel.
• Market acceptance of new products.
• Customer dependency.
• Niche product portfolio.
• Dependency on suppliers.
• Currency risk.

Mitigation Strategies

• Obtaining more customers and broadening the product portfolio.
• Careful monitoring of market and country developments.
• Establishment of new sales offices in France and the USA.
• Maintaining technological advantage through continuous innovation.
• Adapting capacity to increased demand through investment and hiring.
• Developing working methods and management focused on employee motivation and retention.
• Collaboration between Marketing, R&D, and Operations in product planning.
• Close customer relationships and strategic intelligence gathering.
• Increasing market share and expanding to new geographical markets and product areas.
• Broadening the base of contract manufacturers and implementing procedures for supplier selection and evaluation.
• Hedging currency risk for major orders.

Supply Chain Management

Supplier Audits: Regular audits of major suppliers

Responsible Procurement

• Supplier Quality Agreement (SQA)
• Supplier Code of Conduct
• Anti-Corruption Policy

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Global Compact

Certifications: ISO 9001

Awards & Recognition

• DI Gasell, Sweden
• Technology Fast 50
• Børsen Gazelle

Environmental Metrics

ESG Focus Areas

• Hearing protection
• Supplier Code of Conduct
• Anti-Corruption Policy
• Sustainability

Social Achievements

• Continued focus on building a larger company with a broader product portfolio, more markets and stronger customer relations.
• Supported the Danish network initiative Velkommen Hjem to help soldiers in their transition into civilian working life.
• Low staff turnover (1.5%)

Governance Achievements

• Applied the Swedish Code of Corporate Governance and reports no deviations for 2017.

Climate Goals & Targets

Environmental Challenges

• Uneven order flow and sales due to large procurements and long lead times.
• Ability to manage growth and increased demand.
• Dependence on key personnel.
• Market acceptance of newly developed products.
• Customer dependency (three largest customers accounted for 76% of net sales).
• Niche product portfolio.
• Dependency on suppliers.
• Currency risk due to international sales in EUR, GBP, and USD.

Mitigation Strategies

• Hedging large sales orders to offset currency fluctuations.
• Adapting capacity to increased demand through investment, employment, and increased capacity at existing or new suppliers.
• Developing working methods and management focused on a strong team feeling, knowledge-promoting methods, and a favorable work environment.
• Working together of Marketing, R&D, and Operations on planning new products based on customer needs.
• Increasing market share and expanding to new geographical markets and product areas. New subsidiaries in important markets.
• Launching new user-friendly and cost-efficient products to broaden the product portfolio.
• Broadening the base of contract manufacturers and having procedures for the selection and ongoing evaluation of existing suppliers.

Supply Chain Management

Supplier Audits: Annual visits to suppliers’ manufacturing sites

Responsible Procurement

• Supplier Code of Conduct
• Anti-Corruption Policy

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Global Compact

Certifications: ISO 9001

Sustainable Products & Innovation

• Communication systems with hearing protection

Environmental Metrics

ESG Focus Areas

• Safer and healthier work environment for users
• Sustainable value chain
• Fulfilling workplace
• Ethical approach and decent business practices

Environmental Achievements

• Started to measure the company’s CO2 footprint within scope 1 and 2 in accordance with the GHG protocol.

Social Achievements

• All employees are included in the annual bonus program and two share option programs.
• Staff turnover in 2021 was less than 4 percent.

Governance Achievements

• Implementation of an external whistleblower system in 2022.
• No cases linked to corruption were reported in 2021.

Climate Goals & Targets

Environmental Challenges

• Weaker growth due to the pandemic, with delays in sales, difficulties in carrying out field tests, and temporary budgetary re-prioritization by some customers.
• Lower gross margin than the internal target due to product and sales mix, higher costs for some components, and largely distributor-based Racal Acoustics sales.

Mitigation Strategies

• Continued offensive investments in product development and organizational development in R&D and sales, including the acquisition of Racal Acoustics.
• Expectation that a higher percentage of direct sales and price increases will bring the gross margin to over 60 percent.

Supply Chain Management

Supplier Audits: Regular and systematic inspections of major suppliers, including quality audits.

Responsible Procurement

• Code of Conduct for suppliers and anti-corruption policy.
• Preference for suppliers in Europe and the USA to facilitate collaboration on quality and sustainability.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Global Compact

Certifications: ISO 9001:2015

Third-party Assurance: PricewaterhouseCoopers AB