Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainability
• Digitalization

Environmental Achievements

• Modelon's solutions are often used to enable and drive innovation and conversion of products to more sustainable technology and solutions. Digitalization generally entails a reduction or elimination of transport, travel and resource-intensive prototype construction and related testing.

Social Achievements

• Annual General Meeting on May 16 resolved on authorization for the Board to decide on issue of new shares and approved a new share incentive program for all employees.
• Two new non-exclusive reseller partners for Modelon Impact in Asia.

Governance Achievements

• Annual General Meeting on May 16 resolved according to nominating committee proposal and elected a Board with four members.

Climate Goals & Targets

Environmental Challenges

• Transition to managed cloud service is temporarily increasing customer interactions needed to close deals, extending sales cycles and slowing ARR growth.
• Slower customer payments seen as a macroeconomic effect.

Mitigation Strategies

• Planned strategic change involving focused efforts from product development and sales.
• Modelon has stable and well-known customers, and there are no indications of bad debt.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Sustainability

Environmental Achievements

• Modelon Impact enables customers to assess and validate new heat pump technology, contributing to clean energy solutions. Modelon's solutions help customers reduce resource-intensive prototype construction and testing, and drive innovation towards more sustainable technologies.

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Lower service revenue due to increased efforts on the 2024.1 Modelon Impact release.

Mitigation Strategies

• Increased efforts on the 2024.1 release were necessary to support new Modelon Impact sales and improve the product.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Modelon Impact, with applications in clean energy systems (heat pumps, hydrogen storage, etc.)

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Sustainability

Climate Goals & Targets

Environmental Challenges

• Competition from companies with larger sales and marketing organizations.
• Technical development and production safety.
• IT and information security.
• Attracting and retaining key personnel.
• Financing of the business.

Mitigation Strategies

• Aligning go-to-market efforts with growing customer segments.
• Improving product-market fit through targeted product enhancements.
• Implementing efficiency measures based on automation and adoption of new cloud technology.
• Expanding and better leveraging consulting services in driving Modelon Impact sales.
• Further investments in cybersecurity.

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Energy Systems Optimization solution

Environmental Metrics

ESG Focus Areas

• Sustainability

Environmental Achievements

• Modelon's solutions help customers reduce transport, travel, and resource-intensive prototype construction and testing, enabling innovation and conversion of products to more sustainable technology and solutions. A new contract with a North American supplier of sustainable energy storage was secured.

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Competition in the system simulation market is fierce.
• Need to continue investments in usability and scalability to meet customer requirements.

Mitigation Strategies

• Launched an efficiency program to accelerate the path to profit and positive cash flow, expected to yield annual savings of SEK 25 million by reducing external costs and removing sites and overhead functions.
• Adjusted and simplified Modelon’s organization to consolidate customer interfaces under a Chief Revenue Officer, and created new Chief Product, Technology, and Strategy Officer roles.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Modelon Impact (used by customers for sustainable energy storage and decarbonization projects)

Awards & Recognition

• Not disclosed