Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Health
• Employee Safety and Wellbeing
• Diversity and Inclusion

Environmental Achievements

• Developed cadmium-free quantum dots, a safer alternative to cadmium-based technologies.
• Reduced waste by recycling 50.1 tonnes of 60 tonnes generated.

Social Achievements

• Strengthened the team with key appointments in executive and non-executive roles.
• Implemented flexible working arrangements for employees.
• Maintained an excellent safety record with no reportable incidents.

Governance Achievements

• Moved from AIM to the main market of the London Stock Exchange.
• Strengthened the Board with experienced Non-executive Directors.
• Established formal policies and procedures for ethical conduct, anti-bribery, and whistleblowing.

Climate Goals & Targets

Environmental Challenges

• Rapid technological changes in the electronic display industry.
• Inherent market risk in lighting, solar, and life sciences divisions.
• Potential intellectual property infringement.
• Dependence on Dow for commercialization in the display industry.
• Competition from cadmium-based quantum dot producers.
• Potential regulatory barriers for new technologies.
• Risk of continued losses due to significant R&D expenditure.

Mitigation Strategies

• Continuous development of new and innovative technical applications.
• Diversification into lighting, solar, and life sciences markets.
• Close monitoring of intellectual property and engagement of specialists.
• Development of revenue streams from lighting, solar, and life sciences.
• Focus on cadmium-free quantum dots, which have a competitive advantage due to stricter regulations on cadmium.
• Partnering with multinational businesses and engaging specialist third-party input.
• Commercialization of revenue streams as soon as practicable.

Supply Chain Management

Supplier Audits: Not disclosed

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Cadmium-free quantum dots
• Energy-efficient lighting and display technologies
• Solar ink

Environmental Metrics

ESG Focus Areas

• Health and safety
• Environment
• Diversity
• Equal opportunities
• Ethics

Environmental Achievements

• Developed cadmium-free quantum dots, reducing heavy metal content in products.
• Designed products to improve energy efficiency of lighting and display equipment.

Social Achievements

• No reportable safety incidents.
• Increased staff numbers by 18.3% (largely due to expanding supply chain and manufacturing capabilities).
• Launched a new Group share option scheme.
• Employees from 15 different nationalities.

Governance Achievements

• Strengthened engagement with shareholders.
• Appointed an investor relations agency in the USA.
• Improved financial systems.
• Working aggressively toward ISO quality registration.
• Improved supply chain operations and human resources.

Climate Goals & Targets

Environmental Challenges

• Nanoco technology not fully accepted by the market.
• Drawn-out qualification process by display customers.
• Stronger than anticipated competition from non-CFQD® solutions.
• Slow to generate revenue from own product sales and royalty from licensees.
• Lack of widespread adoption and lifespan of CFQD®s in the display market.
• Rapid commoditisation of products.
• Over capacity for CFQD®s leads to price erosion.
• Competitors unlawfully infringing Nanoco’s IP.
• Manufacturing capacity unable to fulfil market demand.
• Key components within the CFQD® supply chain unable to support the demand.

Mitigation Strategies

• High sales and technical sales engagement with all major display OEM brands and all parts of the display supply chain.
• Rapid product development.
• Active control of costs within the business.
• Actively pursue alternative markets such as lighting and life sciences.
• Ensure operations are able to support market demand.
• Prudent management of the Group’s cash.
• Maintaining strong investor support.
• Phased capacity expansion.
• Increase pace at which new generations of CFQD® products are brought to market.
• Constantly scan the market for signs of infringement.
• Prosecute infringers.
• Close monitoring of the market with the Group’s licensees.
• Detailed production plans in place.
• Active engagement with the CFQD® supply chain ahead of anticipated demand.
• Consideration given to subcontracting some, or all, of the components of our products.
• Extensive and ongoing EH&S procedures.
• Continuous training of staff in risks and how to mitigate risks.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• All waste contractors are assessed to ensure the waste hierarchy approach is applied.

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

• Cadmium-free quantum dots

Awards & Recognition

• Nanoco highlighted in Lux Global Hotlist 2015

Environmental Metrics

ESG Focus Areas

• Health and safety
• Environment
• Diversity
• Employee wellbeing
• Ethics

Environmental Achievements

• 46.8 tonnes of waste recycled (2016: 62.1 tonnes)
• Reduced total CO2e emissions by 13.3% (1426 tCO2e in 2017 vs 1646 tCO2e in 2016)
• Development of cadmium-free quantum dots, reducing environmental impact

Social Achievements

• Introduced an Employee Wellbeing Policy and Employee Assistance Programme
• Improved safety culture, no reportable incidents
• Employees from 14 different nationalities
• 24% female employees

Governance Achievements

• ISO 9001:2015 certification for production and supply processes
• Compliance with the UK Corporate Governance Code

Climate Goals & Targets

Environmental Challenges

• Drawn-out qualification process by display customers
• Stronger than anticipated competition from non-CFQD solutions
• Slow revenue generation from own product sales and licensee royalties
• Cash shortfall
• Lack of widespread adoption of CFQD products
• Rapid commoditisation of products
• Meeting product specifications
• Intellectual property infringement

Mitigation Strategies

• Active control of costs
• Fundraising of £8 million
• Pursuing alternative markets (lighting and life sciences)
• Phased capacity expansion
• Increased pace of new product development
• Prosecution of infringers
• Continuous technology improvement
• Extensive EHS procedures
• Continuous staff training

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Cadmium-free quantum dots