Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainable e-commerce
• Responsible lending and business
• Being an attractive employer

Environmental Achievements

• Reduced CO2 emissions by over 8 metric tons through recycling and reuse.
• 100% renewable electricity used in operations.

Social Achievements

• Launched Retursmart service to increase awareness of the environmental impact of returns.
• No gender pay gap found in annual salary audit.
• Employee engagement increased, and eNPS score rose from +5 to +21.

Governance Achievements

• Implemented a three-lines-of-defense model for risk management.
• Established policies for combating corruption, money laundering, and terrorism financing.
• 90% of employees completed mandatory online courses on Code of Conduct, data privacy, and compliance.

Climate Goals & Targets

Environmental Challenges

• Responsible lending (insufficient repayment capacity, over-indebtedness among customers)
• Combating corruption, money laundering, and terrorism financing.
• Attracting and retaining employees in a competitive tech market.

Mitigation Strategies

• Improved credit assessment processes, including raising requirements on income and employment.
• Implemented a three-lines-of-defense model for risk management and established relevant policies.
• Offered competitive working conditions, benefits, and a focus on creating an attractive and inclusive workplace culture.

Supply Chain Management

Supplier Audits: Sustainability issues are a parameter when evaluating new suppliers.

Responsible Procurement

• Chosen a supplier for waste handling that offers transparency on material processing.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Annual Accounts Act (chapters 6 and 7)

Certifications: BREEAM (office property, level 4 of 6)

Third-party Assurance: KPMG AB

UN Sustainable Development Goals

• Not disclosed

Qliro works with 7 of the 17 UN Sustainable Development Goals (specific goals not listed).

Sustainable Products & Innovation

• Retursmart service

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Sustainable e-commerce
• Responsible lending and business
• Being an attractive employer

Environmental Achievements

• Reduced CO2 emissions by over 5.8 metric tons through recycling and reuse.
• 100% renewable energy used in operations.
• Office property is BREEAM certified, level 4 of 6 (Very Good).

Social Achievements

• Launched 'Lifestyle Profile' service in app to raise awareness about sustainable consumption.
• Launched 'ReturnSmart' service to reduce e-commerce returns.
• Improved communication with customers experiencing payment difficulties, resulting in a 10-30% decrease in the proportion of customers with payment difficulties on Swedish PaD products.
• Employee eNPS increased from +16 to +24.

Governance Achievements

• Implemented a new provisioning model for private loan products, resulting in a reduced credit loss ratio.
• Continued work on improving credit assessments and processes.
• Over 90% of employees completed mandatory online courses on Code of Conduct, data privacy, compliance, conflict of interest, and risk control.

Climate Goals & Targets

Environmental Challenges

• Responsible lending (insufficient repayment capacity, over-indebtedness among customers, increased indebtedness in society)
• Solid business ethics, anti-corruption and financial crime
• Attractive employer (risk of not being seen as an attractive employer, risk that gender equality and diversity initiatives are unsuccessful)
• Climate change impact (as a small actor in a global context)

Mitigation Strategies

• Continuous improvement of credit assessment processes and customer management.
• Implementation of robust internal systems and processes, following the Swedish Bankers’ Association’s responsible lending code.
• Three lines of defense model for risk management.
• Zero tolerance for corruption, money laundering, and terrorism financing; implementation of KYC procedures and internal policies.
• Focus on creating a WOW-experience for employees, offering benefits and promoting a diverse and inclusive culture.
• Internal climate impact reduction initiatives (Fairtrade products, waste management, sustainable travel policy).

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Sustainability issues are a parameter when evaluating new suppliers.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Annual Accounts Act (chapters six and seven)

Certifications: BREEAM (office property)

Third-party Assurance: KPMG AB

UN Sustainable Development Goals

• Not disclosed

Qliro works with 8 of the 17 UN Sustainable Development Goals (specific goals not listed).

Sustainable Products & Innovation

• Lifestyle Profile service
• ReturnSmart service

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Sustainable e-commerce
• Responsible business and lending
• Attractive employer

Environmental Achievements

• Reduced CO2 emissions by over 3.8 metric tons through recycling and reuse.
• 100% renewable energy used in operations.
• Office premises certified according to BREEAM level 4 of 6, Very Good.

Social Achievements

• Maintained high employee satisfaction (eNPS +23).
• Implemented several initiatives to improve communication with customers experiencing payment difficulties.
• Launched new strategy with a stronger focus on payments, "Safe and Simple Payments".

Governance Achievements

• Implemented a comprehensive policy framework including Enterprise Risk Management Policy, Code of Conduct, Conflict of Interest Policy, Anti-Money Laundering and Counter-Terrorism Financing Policy, Credit Policy, Whistleblower Policy, Policy for handling customers’ issues and complaints, Guidelines for remuneration of senior executives, Merchant Policy, and Governance Policy.
• Established a three lines of defense model for risk management.
• Established a Remuneration Committee and a Risk, Capital, Audit and Compliance Committee (RCACC).

Climate Goals & Targets

Environmental Challenges

• Decline in e-commerce volumes (-9% according to Svensk Handel).
• Increased credit losses (SEK 134.1 million) due to macroeconomic uncertainty and IFRS 9 adjustments.
• Competition for talent in the tech sector.

Mitigation Strategies

• Launched a profitability program to reduce expenses and boost income.
• Improved credit assessment models and processes.
• Improved communication with customers experiencing payment difficulties.
• Implemented digitization initiatives to improve efficiency and customer experience.
• Increased focus on employer branding and recruitment.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Prioritizes organic, Nordic Swan Ecolabel and Fairtrade products.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Annual Accounts Act (Chapters 6 and 7)

Certifications: BREEAM level 4 of 6, Very Good (office premises)

Third-party Assurance: KPMG AB

UN Sustainable Development Goals

• Goal 8: Decent Work and Economic Growth
• Goal 10: Reduced Inequalities

Qliro contributes to sustainable growth and job opportunities, and promotes equal opportunities for all.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Sustainable e-commerce
• Responsible lending and business practices
• Attractive employer

Environmental Achievements

• Reduced paper consumption by 39%
• Reduced data center use by almost half
• Reduced office space, leading to lower energy consumption
• 100% renewable energy use

Social Achievements

• 44% women in management in 2023
• Assisted 25 individuals to come to or remain in Sweden for work
• Highest rating in employee engagement tool for workplace free from discrimination and harassment
• Increased eNPS from +23 to +30

Governance Achievements

• Achieved positive operating profit for the full year 2023
• Implemented a profitability program
• Strengthened internal procedures and control processes
• Established a three lines of defense model for risk management

Climate Goals & Targets

Environmental Challenges

• Challenging e-commerce climate in 2023 with lower consumer spending
• Shift in merchant focus from growth to profitability leading to reduced campaign activity
• Competition for tech staff in Stockholm

Mitigation Strategies

• Implemented a profitability program
• Increased investments in product development
• Strengthened commercial focus and investments to accelerate growth in Enterprise and SME segments
• Developed digital functionality and information provision in Qliro’s app to help customers make timely payments
• Reduced maximum amount for private loans and tightened creditworthiness requirements
• Calibrated internal credit loss reserve models

Supply Chain Management

Responsible Procurement

• Choosing suppliers that offer transparency and insight into waste management

Climate-Related Risks & Opportunities

UN Sustainable Development Goals

• Goal 7
• Goal 8
• Goal 10
• Goal 13
• Goal 16
• Goal 17