Climate Change Data

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

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

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Implementation of M&A growth strategy involves significant risks, and failure to integrate acquired companies successfully may adversely affect future results.
• Failure to develop and deploy new technologies to address updated customer needs.
• Lengthy development cycles and significant expenses before generating revenues.
• Macroeconomic headwinds impacting revenues, profitability, and cash flows.
• Inability to respond to evolving technological environment.
• Difficulty retaining highly skilled personnel.
• Failure to manage growth (organic and inorganic).
• Highly competitive and dynamic market for software solutions.
• Failure to plan and manage changes in operational size.
• Impaired relationships with existing customers, especially largest customers.
• Dependence on a limited number of core product families.
• Risks associated with long-term, large, complex implementation projects.
• Potential liability for damages caused by intellectual property violations, confidential information disclosure, system failures, errors, or unsatisfactory service performance.
• Insufficient insurance coverage for potential damages.
• Changes in privacy regulations imposing additional costs and liabilities.
• Significant disruptions of IT systems or data security breaches.
• Security vulnerabilities in software solutions leading to reduced revenue or liability claims.
• Errors or defects in software solutions.
• Incorrect or improper use of products resulting in customer dissatisfaction.
• Catastrophes adversely impacting the insurance industry.
• Potential for significant impairment charges on intangible assets and goodwill.
• Decreases in capital markets adversely impacting industries we operate in.
• Consolidation in the insurance or other markets we operate in.
• Restrictive covenants in credit facility agreements and debentures.
• Third-party assertions of intellectual property infringement.
• Insufficient protection of intellectual property rights.
• Loss of third-party technology and intellectual property.
• Requirement to provide source code to customers.
• Use of open-source software imposing restrictions.
• Fluctuations in foreign currency exchange rates.
• Adaptation to regulations in specific territories for international operations.
• Changes to fiscal and tax policies.
• Limited trading volume for ADSs and ordinary shares.
• Quarterly fluctuations in results of operations.
• Securities traded on more than one market.
• Influence of largest shareholder (Asseco Poland S.A.).
• Inability to maintain effective internal control over financial reporting.
• Changes in taxation of international business activities.
• Political and economic conditions in Israel.
• Reduction of government spending in Israel on IT services.
• Termination or reduction of tax benefits available to Israeli subsidiaries.
• Restrictions on Sapiens’ activities due to Israeli government grants.
• Challenges in expanding business in emerging markets (e.g., India).
• Following home country corporate governance practices instead of certain Nasdaq requirements.
• Potential adverse tax consequences for U.S. shareholders.
• Difficulty protecting interests as a shareholder of Sapiens (Cayman Islands company).

Mitigation Strategies

• Integrated M&A growth strategy focused on growing customer base, expanding geographic footprint, and adding complementary solutions.
• Substantial investment in research and development of new technologies.
• Implementation of further controls and preventative actions to strengthen systems against cyberattacks.
• Disclosure controls requiring reporting of cyberattacks internally.
• Investment in advanced detection, prevention, and proactive systems to reduce cyber risks.
• Measures to protect intellectual property rights and source code.
• Currency hedging transactions to reduce the effect of fluctuations in foreign currency exchange rates.
• Internal control measures to mitigate financial reporting errors or fraud.
• Commitment to continued remediation of material weakness in internal control over financial reporting at Magic Software.
• Continued investment in innovation and feature development, simplified cloud migration, and performance and reliability, as well as other cloud customer success and sales initiatives.
• Ongoing maintenance and support contracts with customers.
• Business alliances with MSPs and distributors.
• Online support systems and Support Knowledge Base tools.
• Formal and organized training on development tools and packaged software solutions.

Supply Chain Management

Climate-Related Risks & Opportunities