Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Further investment in technology to collaborate and reduce physical travel to reduce the Group’s environmental footprint.

Social Achievements

• A number of successful new hires in the year in key strategic roles.
• Internal promotions within the business.
• Platform for employees to promote and raise awareness of charities important to them.

Governance Achievements

• A co sourced internal audit function has been established as well as a risk register.
• Nine new Company policies were introduced (e.g. whistleblower) and the Code of Business Conduct and Ethics established and embedded.
• Controls over the issuance of permanent and temporary licences have been strengthened.
• A rigorous process for the release of RNS announcements has been established.
• A robust process to recognise and record orders received from customers has been set up.
• The involvement of the Finance function assessing the business case and commercial terms of sales transactions.
• A delegation of authority published for discounting product and services has been implemented.
• Documentation of systems and processes.
• Identification and testing of material operational and financial internal controls.
• Training and certification for all colleagues on governance, anti-bribery, ethics and compliance.

Climate Goals & Targets

Environmental Challenges

• Legacy issues from the Irregularities reported in March 2023.
• FCA investigation continues.
• Jurisdictional issues prevented meeting with senior salesperson allegedly involved with the fraud.
• Significant turnover in leadership during 2023.
• Missed targets and slippage across quarters.
• Customers concentrated within a small number of sectors and with a small number of critical partner organisations.
• Potential negative reputational impact from customer actions.
• Ensuring the security and performance of Cirata’s products.
• Ability to balance resources across competing priorities for customers.
• Ability to provide 24/7 customer support.
• Damages to relationships with sales partners.
• Failure to develop an effective GTM strategy.
• Failure to implement and maintain effective sales processes.
• Lack of access to reliable data relating to pipeline.
• Inability to align on standardised pricing and commercial models.
• Inability to attract new customers or expand existing customers.
• Ability to achieve the right balance between Data Migrator and DevOps.
• Perceptions of the business and the brand.
• Risk that innovation and continuation of developing the best products on the market may fail to occur.
• Cirata’s products are sold into complex scenarios where they may not always immediately meet customer requirements.
• Potential for cyber-attack.
• Quality assurance processes may not be sufficiently evolved.
• Loss-making position of the Company and the low cash balance sheet position.
• Ability of the business to successfully close sales in a predictable and sustainable way.

Mitigation Strategies

• Resolution of most legacy issues.
• Supporting the FCA enquiry.
• Changes made to the executive team.
• Changes made that go some way to alleviate the anxiety and to provide an improved work environment and a greater sense of security going forward.
• Improved cadence of external reporting.
• Regular meetings with shareholders by executive management.
• Two new Non-executive appointments to the Board.
• Strengthened GTM process.
• More disciplined pipeline management.
• Review of the technology and the offering.
• Strengthening the Go-To-Market (“GTM”) processes.
• Building the sales pipeline as a platform for growth.
• Initiating a review of the operating strategy of the business.
• Streamlined and focused GTM organisation.
• Renewed emphasis on DevOps.
• Revitalised brand and team.
• Financial and operational discipline.
• Preservation of cash.
• Implementation of FY24 plans.
• Clarification of team objectives.
• Comprehensive sales training.
• Territory plans and compliance training.
• Enhanced pipeline, improved predictability, and elevated overall sales performance.
• Proactive customer dialogue.
• Inaugural Customer Innovation Board planned.
• Stock based compensation.
• Employee communications.
• All-hands meetings and employee survey.
• Investment in developing and communicating new sales processes and enablement.
• New GTM organisation.
• New brand adopted.
• Strengthened marketing team.
• Investment into relationships with key partners.
• Investment in quality control processes and training.
• Contribution to relevant open-source projects.
• Product roadmap based on customer and partner requirements.
• Access controls, data security, security awareness training, incident response plan.
• Regularly reviewing and updating security policies and procedures.
• Investing in new security technologies and solutions.
• Maintaining ISO 27001 certification.
• Raising $30.3m.
• Reduction in cost base.
• Detailed budget and forecasts.
• Monthly management accounts reviews.
• Maintaining close relationships with providers of finance.

Supply Chain Management

Climate-Related Risks & Opportunities