Climate Change Data

Environmental Metrics

ESG Focus Areas

• Employee engagement
• Diversity and inclusion
• Environmental impact (energy and carbon emissions)
• Community investment
• Modern Slavery and Human Trafficking

Environmental Achievements

• Reduced carbon emissions by 31% (location-based) and 37% (market-based) year-on-year. This is largely attributed to a reduction in office space and increased remote working.

Social Achievements

• Expanded employee engagement activities, including surveys, all-employee calls, and online wellbeing initiatives.
• Established a Diversity & Inclusion working group to improve diversity and inclusion within the workforce.
• Operated a charitable donation scheme, matching employee fundraising for charities.
• Maintained a written policy on Modern Slavery and Human Trafficking.

Governance Achievements

• Designated Philip Wood as the Board member responsible for overseeing ESG activities.
• Strengthened the Board’s engagement with the wider workforce.
• Introduced a more detailed succession planning process for Executive Directors and senior management.
• Enhanced the internally-led annual Board Effectiveness Review process.
• Proactively engaged with major investors on the Group’s 2020 remuneration strategy.

Climate Goals & Targets

Environmental Challenges

• Initial disruption to key markets in Q2 and Q3 2020 due to the COVID-19 pandemic.
• Competition in the rapidly evolving technology market.
• Potential for undetected errors in software products.
• Risk of losing key personnel or difficulty in recruiting.
• Potential adverse consequences from future acquisitions.
• Risk of loss or disclosure of client data.
• Potential impact of UK's withdrawal from the European Union on operations and revenue.
• Risk of COVID-19 impacting new business activities, software implementation, and support provision.

Mitigation Strategies

• Remained agile and resilient to the pandemic's impact.
• Continued investment in product development and enhancement.
• Strengthened partner network for market access and implementation support.
• Robust development and testing processes.
• Ongoing investments in employee training, development, and engagement.
• Thorough due diligence and acquisition experience.
• Data security training, background checks, and business continuity arrangements.
• Monitoring the implementation of new rules and assessing the impact of the UK's withdrawal from the EU.
• Remote working arrangements and alternative measures to physical travel.
• Monitoring developments across client base and prospects.

Supply Chain Management

Responsible Procurement

• Formal process for engaging new suppliers
• Board approval for significant recurring supplier contracts
• Supplier selection based on high standards and alignment with Group values

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, Streamlined Energy and Carbon Reporting (SECR)

Third-party Assurance: Grant Thornton UK LLP

Environmental Metrics

ESG Focus Areas

• Equality, Diversity and Inclusion
• Climate Change
• Environmental Impact
• Community Investment
• Human Rights

Environmental Achievements

• Significant year-on-year reduction in carbon emissions (14% reduction in scope 1 and 2 emissions; 31% reduction in emissions intensity)

Social Achievements

• Established a Diversity & Inclusion SteerCo
• Formulated and adopted a new Equality, Diversity and Inclusion Policy
• Launched a Women in Leadership initiative
• Charitable donation scheme matching employee-raised funds

Governance Achievements

• Smooth transition of chairmanship of the Audit and Remuneration Committees
• Proactive engagement with major investors on the renewal of the Group’s Remuneration Policy

Climate Goals & Targets

Environmental Challenges

• Increased inflationary pressures, particularly in Poland
• Unusually high level of churn in subscription management impacting ARR growth
• Current economic climate leading to higher scrutiny of project payback periods

Mitigation Strategies

• Careful management of investment levels
• Focus on securing new Fynapse clients and developing the Microsoft partnership
• Executing on opportunities with existing product sets and unlocking volume subscriptions
• Initiatives to optimize recruitment and retention in Poland (reducing employee attrition to 15%)

Supply Chain Management

Responsible Procurement

• Considering environmental credentials of data centers and cloud service providers

Climate-Related Risks & Opportunities

Physical Risks

• High or extremely high water stressed areas (immaterial)
• Riverine flooding (immaterial)
• Exposure to insurance clients at risk from climate events (immaterial)

Transition Risks

• Carbon pricing in the value chain
• Reputational risks linked to sustainability performance & reporting

Opportunities

• Zero emission energy
• Managing resource efficiency

Reporting Standards

Frameworks Used: TCFD

Certifications: ISO 14001 (data center in Poland)

Third-party Assurance: RSM UK Audit LLP

Awards & Recognition

• Gold SKA fit-out sustainability rating (London office)

Environmental Metrics

ESG Focus Areas

• Environmental matters
• Employee Health and Wellbeing
• Equality, Diversity and Inclusion
• Business Ethics
• Engagement with Suppliers, Customers and other Business Partners
• Taxation
• Climate-Related Financial Disclosures

Environmental Achievements

• Reduced Scope 3 emissions by 28% year-on-year to 2,324 tCO2e (2022: 3,227 tCO2e), largely due to a reduction in business travel.

Social Achievements

• Increased focus on mental health, including open conversations, campaigns, and a stress management program.
• Continued Women in Leadership initiative to attract diverse talent to leadership roles.
• Implemented a Diversity and Inclusion SteerCo to drive initiatives promoting diversity and inclusion.

Governance Achievements

• Appointment of new executive team (CEO and CFO) with strong operational and market experience.
• Implemented a new set of organisational objectives and key results (OKRs) to support the refreshed strategy.
• Adopted a new capital allocation policy, including a share buyback program of up to £20m over three years.

Climate Goals & Targets

Environmental Challenges

• Increased churn, predominantly in Subscription, Billing and Revenue Management, moderating revenue growth.
• Lengthening sales cycles due to macroeconomic conditions impacting investment decisions.
• Need for organisational realignment to support the Fynapse opportunity and strategic partnerships.

Mitigation Strategies

• Strategic refocus and objectives aligning the organisation to execute on the Fynapse opportunity and mitigate client churn.
• Appointment of a Chief Product and Technology Officer and a Chief Revenue Officer.
• Implementation of a global and Fynapse partner-led go-to-market team.
• Robust churn mitigation solutions being implemented across the Group.
• Refocus of the partner program to build stronger relationships with fewer critical partners.

Supply Chain Management

Responsible Procurement

• Suppliers are chosen according to their ability to meet the Group’s high standards and demonstrate consistent values.

Climate-Related Risks & Opportunities

Physical Risks

• Drought stress
• Riverine flooding
• Exposure to insurance companies at risk from climate events

Transition Risks

• Carbon pricing in the value chain
• Reputational risks linked to sustainability performance
• Dependence on third parties for decarbonisation

Opportunities

• Zero emission energy
• Managing resource efficiency

Reporting Standards

Frameworks Used: TCFD

Certifications: ISO 27001

Third-party Assurance: RSM UK Audit LLP

Sustainable Products & Innovation

• Fynapse platform