Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Fonix’s entire senior leadership team undertook Carbon Literacy Training and have committed to make meaningful changes to both their personal and working practices with the aim of further limiting the business’ impact on the environment.
• The company continues to implement initiatives aimed at reducing electricity consumption. Where energy consumption is necessary, such as in our office and in our data centre storage centres, we strive to use the most environmentally friendly suppliers and those using high proportions of 100% renewable energy.

Social Achievements

• We prioritise the wellbeing of our employees. We support flexible working practices within the organisation which is incredibly well received by the staff.
• At Fonix, we celebrate diversity and foster an inclusive workplace culture. Our workforce is composed of individuals from diverse backgrounds, with a significant proportion of staff belonging to minority groups.
• Health and safety is, of course, fundamental to the business’ operations, and whilst Fonix is assessed as a low risk workplace, a significant proportion of our staff are first aid or fire warden trained, with the offer to train every member of staff that wishes to be trained.

Governance Achievements

• In recognising the feedback from some shareholders for greater independent representation on the board and its committees, William Neale resigned from both the remuneration and audit committees during the year and the board has committed to consider appointing a third non-executive director, providing the candidate can add meaningful strategic or commercial value, as well as fulfil governance functions.

Climate Goals & Targets

Environmental Challenges

• Fall in demand for services
• Loss of key customers
• Dependency on key suppliers
• Mobile network operator indemnities
• Technological change
• Regulatory and compliance breaches
• Regulatory changes and gambling white paper
• Potential competition
• Insufficient operational support
• Loss of key staff and recruitment
• Misappropriation of intellectual property rights
• Security breaches
• Industry scandals
• Cost of living crisis and economic downturn
• Foreign exchange
• Treasury
• Phishing
• Forecasting

Mitigation Strategies

• continuing to invest in new product innovations
• investing to target growth in new geographies and adjacent sectors
• continuing to invest in new product features that differentiate it from its competitors and ensure customers are more embedded in the company’s platform
• continuing to maintain strong relationships with all its MNOs and takes a consultative approach with MNOs regarding any compliance and/or proposed commercial changes
• maintaining the ability to pass the difference onto merchants
• continuing to maintain strong relationships with all its MNOs and regularly reviews its customers’ services to ensure they comply with MNO contracts and regulatory guidelines
• continuously reviewing its product roadmap to ensure new and planned product features remain relevant to the demands of its customers and prospective customers
• regularly undertakes periodic customer compliance reviews and customer due diligence in line with the PSA Code
• generally only working with customers with a long standing trading history
• ensuring that all applicable laws and regulations, along with proposed changes are well understood and addressed as required
• liaising with its significant customers operating prize draw competitions, along with the industry trade association, Association for Interactive Media and Micropayments (AIMM) to engage with the Gambling Commission during the gambling white paper consultation
• continuing to invest in new product features that differentiate it from its competitors and ensure customers are more embedded in the company’s platform
• continuously reviewing whether its operational processes and resources remain adequate given the size and nature of its customer base and the requirements of its contractual service-level agreements (SLAs)
• promoting a positive work environment and ensuring the business remains an enjoyable and appealing place to work
• ensuring responsibilities are shared across teams so key person risks are significantly reduced
• regularly reviews its remuneration policy to ensure it remains competitive
• requiring that any agreements it enters into include appropriate confidentiality and IPR clauses
• ensuring that appropriate levels of data security and that intrusion detection processes remain in place
• undergoes third-party penetration tests at least annually to ensure the robustness of its systems
• continuing to work closely in partnership with the Phone-paid Service Authority (PSA) to promote best practice in the industry
• continuing to grow and diversify its customer base and by helping the company’s merchant’s to optimise their marketing spend with targeting consumer messaging
• converting working capital into its functional currency (pounds sterling) at the earliest opportunity after profits have been fully realised in net cash received
• only holding cash in instant access bank accounts with financial institutions with high levels of credit worthiness
• holding multiple banking relationships so that cash deposits can be moved to alternative financial institutions at short notice
• having comprehensive payment approval processes and ensuring any requests to change a merchant’s bank details are thoroughly checked and cross referenced ahead of any changes being approved
• taking a conservative approach to forecasting and avoids over committing resources during contract negotiations and merchant onboarding

Supply Chain Management

Responsible Procurement

• using the most environmentally friendly suppliers and those using high proportions of 100% renewable energy

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: QCA Corporate Governance Code

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced energy consumption (scope 1 & 2) from 0.016 MWh/£m of revenue in 2023 to 0.011 MWh/£m of revenue in 2024
• Reduced CO2 production (scope 1 & 2) from 0.0003 tonnes/£m of revenue in 2023 to 0.0000 tonnes/£m of revenue in 2024
• Reduced water consumption from 2.891 m3/£m of revenue in 2023 to 3.389 m3/£m of revenue in 2024
• Reduced waste production from 0.164 tonnes/£m of revenue in 2023 to 0.192 tonnes/£m of revenue in 2024
• Implemented paperless office and recycling facilities

Social Achievements

• Reduced employee turnover rate from 16.9% in 2023 to 8.4% in 2024
• Maintained a diverse workforce with a significant proportion of staff belonging to minority groups
• Implemented flexible working practices
• First aid and fire warden training for staff

Governance Achievements

• Board seats held by women remained at 20%
• Board seats held by independent directors remained at 40%
• Directors’ remuneration submitted to advisory shareholder vote
• All directors put forward for re-appointment at the AGM

Climate Goals & Targets

Environmental Challenges

• Fall in demand for services
• Loss of key customers
• Dependency on key suppliers
• Mobile network operator indemnities
• Technological change
• Regulatory and compliance breaches
• Regulatory changes, including gambling legislation
• Potential competition
• Insufficient operational support
• Loss of key staff and recruitment
• Misappropriation of intellectual property rights
• Security breaches and cyber risk
• Industry scandals
• Changes in consumer behaviour and economic downturn
• Foreign exchange
• Treasury
• Phishing
• Forecasting

Mitigation Strategies

• Investment in new product innovations
• Targeting growth in new geographies and adjacent products
• Close work with existing customers
• Investment in new product features
• Exemplary customer service support
• Maintaining strong relationships with MNOs
• Consultative approach with MNOs
• Ability to pass on MNO price variances to merchants
• Investment in alternative messaging and payment connections
• Regular customer compliance reviews and due diligence
• Working with customers with long-standing trading history
• Working with third-party advisors
• Liaising with customers and AIMM to engage with the Gambling Commission
• Working closely with customers in Ireland to engage with the Irish parliament
• Investment in new product features
• Exemplary customer service support
• Reviewing operational processes and resources
• Promoting a positive work environment
• Sharing responsibilities across teams
• Reviewing remuneration policy
• Requiring appropriate confidentiality and IPR clauses in agreements
• Robust information security and controls
• Third-party penetration tests
• Working closely with regulators and industry associations
• Growing and diversifying customer base
• Optimising marketing spend
• Converting working capital to Sterling promptly
• Holding cash in instant access bank accounts with high creditworthiness
• Holding multiple banking relationships
• Comprehensive payment approval processes
• Thorough checks on bank detail changes
• Conservative approach to forecasting

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Prioritising suppliers with best-in-class environmental policies

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: QCA Corporate Governance Code

Certifications: Null

Third-party Assurance: UHY Hacker Young

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed