Climate Change Data

Environmental Metrics

ESG Focus Areas

• Carbon output reduction
• Sustainability goals

Environmental Achievements

• Reduced landfill by separating waste streams

Social Achievements

• Regular internal communication meetings to ensure employee knowledge and encourage suggestions
• Ongoing training and routine appraisals for staff
• Efforts to maintain high standards for the environment and relationships with employees, customers, and suppliers

Governance Achievements

• Adopted the Quoted Companies Alliance Corporate Governance Code
• Board evaluation deemed satisfactory
• Regular management meetings to report on departmental activities and highlight issues

Climate Goals & Targets

Environmental Challenges

• Decline in legacy Janus range of access control products
• Reduced revenue from high street banks and building societies
• Increased competition and pressure to reduce prices in the asset protection division
• Lack of investment in public sector markets due to budget cuts and Brexit uncertainty
• Increased costs of raw materials and imported components
• Sales of new products in a dynamic market
• Risk of service agreements not being renewed
• Market conditions affected by Brexit uncertainty
• Volatile pricing and availability of key inputs
• Potential for functional failure of products

Mitigation Strategies

• Growth in Sateon range compensated for Janus decline
• Restructuring in asset protection division, including staff reduction and cost-saving measures
• Increased marketing efforts to concentrate on sales of supply-only products and projects within Safetell’s traditional product offering
• Customer trials and ascertaining features required by customers for new product development
• Service level agreements with customers and regular meetings to check satisfaction levels
• Wide range of product offerings, continuous new product development, and close working relationships with customers
• Reviewing potential impact of Brexit, including alternative sourcing strategies and increased stock levels
• Rigid procurement process, long-term relationships with suppliers, economic purchasing, multiple suppliers, and inventory management
• Quality control procedures and ongoing review and improvement of quality control systems

Supply Chain Management

Responsible Procurement

• Regular supplier reviews to ensure company and vendor needs are met

Climate-Related Risks & Opportunities

Environmental Metrics

Social Achievements

• Implemented working from home as a standard during COVID-19; Expanded use of Microsoft Teams; Implemented daily Teams meetings; Regular company-wide communications via Teams; Warehouse, installation/service work only carried out with social distancing and safety in mind; Safetell created a product line of hygiene screens and security hatches, sold to organizations such as Amazon and Travis Perkins; Developed new security portals with temperature and touchless sensors; Launched several training courses as online webinars.

Governance Achievements

• Followed the Quoted Companies Alliance Corporate Governance Code (QCA Code); Appointed Terence Yap as a new Independent Non-Executive Director; Implemented a robust governance framework; Regular updates and announcements provided to the market; Closely engaged with Allenby, brokers, to ensure fair practices; Attendance on retail events, such as Mello, provided engagement with investors; Utilized investor relations and financial PR experts; Significant focus on understanding customer needs; Group HR operated seamlessly across divisions; Finance integrated with decision making; Provided solutions to facilitate proper usage of Personally Identifiable Information (PII); Commenced a program for measuring and improving impact on community and environment; Board decisions reflected in budgets and five-year plans; Formal PLC Board combined with Exec teams of each division for presentations and strategic discussions; Wider team meetings used to ensure understanding and engagement in business priorities; Fair dealings and management of issues and grievances; Significant emphasis placed on employee safety enhanced regarding Covid-19 outbreak; Employee questionnaires utilized to engage and obtain sentiment; Focus on the right people in the right role with good support - training programs and succession planning in place; Regular updates and meetings with HSBC; Communications with customers and suppliers; Trade shows and exhibitions; Online training initiated for Installers; Launched new websites.

Climate Goals & Targets

Environmental Challenges

• COVID-19 impact on trading activity and project delays; Risk of market needs changing during new product development; Risk of service agreements not being renewed; Market conditions impacting demand for products; Uncertainty over COVID-19 and Brexit affecting demand; Input price and availability volatility; Potential for product functional failure; Credit risk from credit sales; Liquidity risk; Market risk; Foreign exchange risk.

Mitigation Strategies

• Geographic spread and customer nature reduced COVID-19 impact; Customer trials and feature requirements ascertained for new products; Service level agreements closely monitored; Wide range of product offerings, new product development, and close customer relationships; Constant review of resourcing levels; Rigid procurement process, long-term supplier relationships, economic purchasing, multiple suppliers, and inventory management; Alternative sourcing strategies and increased stock levels; Quality control procedures and external quality auditors; Credit risk assessment, purchase limits, monthly review of trade receivables, restricted customer list, and pro forma invoices; Daily reports of bank accounts and regular cash forecasts; Liabilities settled with cash generated from operations or in functional currency; Alternative sources of supply and increased stock levels; Secured financing via the Coronavirus Business Interruption Loan Scheme (CBILS) government-backed loan to the value of £2 million.

Supply Chain Management

Responsible Procurement

• Long-term relationships with suppliers; Economic purchasing; Multiple suppliers; Inventory management.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: QCA Code

Sustainable Products & Innovation

• Hygiene screens; Security hatches; Security portals with temperature and touchless sensors; Mobile enabled readers; Contactless exit release buttons; Facial recognition.