Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Secured B Corp accreditation in May 2018 following a comprehensive and intensive due diligence program

Social Achievements

• Continued focus on building up operating engineering and artificial intelligence (AI) capabilities
• Changed key recruitment criteria from focus on reputation and relationships to courage (grit), character and creativity
• Introduced neuroscience based tools for leadership team members

Governance Achievements

• Appointed venture capitalist, technology entrepreneur and machine learning specialist, Mr. Ed Fernandez, as a Non-Executive Director during April 2018
• Appointed Dr Tara Swart, a world leading neuroscientist, leadership and performance coach to Advisory Board and as Chief Neuroscience Officer

Climate Goals & Targets

Environmental Challenges

• Reduced solar development profits
• Non-cash impairment write-downs following disposal of surplus solar assets
• Growth opex investment in education and funds management
• Decrease in cash balance primarily reflecting further investment in solar projects and operating cash outflows to fund growth across business units

Mitigation Strategies

• Strategic review completed resulting in focus on monetisation of projects, cost base reduction and driving further Aevitas growth
• Completed transformational acquisition of DDLS Australia
• A comprehensive onboarding and integration of DDLS was undertaken following acquisition which has delivered in excess of $2.0m of annualised cost savings.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: B Corp

Environmental Metrics

ESG Focus Areas

• environmental
• social
• governance

Social Achievements

• Following the attainment of our B Corp accreditation, the funds management arm is being rebranded as Arowana Impact Capital with a dedicated commitment to sustainable investing that meets B Corp’s ESG (environmental, social and governance) protocols.

Governance Achievements

• Attainment of B Corp accreditation

Climate Goals & Targets

Environmental Challenges

• VivoPower did not achieve its objective of crystallising intrinsic portfolio value, especially in relation to the US solar development project portfolio.
• A number of project development issues that needed to be remediated were uncovered in VivoPower's US solar development projects (lack of engagement with JV partner, weak project paperwork controls, out-of-date financial models, inappropriate PPA origination strategy).

Mitigation Strategies

• The appointment of a new specialist in-house advisor in November 2018 who conducted a forensic review into the project portfolio and uncovered a number of project development issues that needed to be remediated. These issues have since been rectified.
• VivoPower’s primary objectives for the year ahead are to return to profitability as well as to enhance and maximise value from monetisation of its US and Australian solar development portfolio in an orderly, project-by-project manner.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: B Corp

Third-party Assurance: PKF Brisbane Audit

Environmental Metrics

ESG Focus Areas

• Gender Equality

Social Achievements

• Offers employer-funded paid parental leave (12 weeks for primary carers, 2 weeks for secondary carers), accessible to 91-100% and 90-100% of the workforce respectively.
• Provides flexible working arrangements including flexible hours, time-in-lieu, telecommuting, part-time work, and unpaid leave for both managers and non-managers.
• Has an employee assistance program (including access to psychologist, chaplain or counsellor) to support employees experiencing family or domestic violence.
• Offers various support mechanisms for employees experiencing family or domestic violence, including flexible working arrangements, financial support, change of office location, emergency accommodation assistance, and access to medical services.
• Conducts gender pay gap analysis on a like-for-like basis.

Governance Achievements

• Has a formal policy on remuneration.
• Has a formal policy on sex-based harassment and discrimination prevention, with training provided to all managers and employees.

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• B Corp Governance

Social Achievements

• Improved B Corp impact score (though not above 100 by reporting period end)

Governance Achievements

• Improved B Corp impact score (though not above 100 by reporting period end)

Climate Goals & Targets

Environmental Challenges

• COVID-19 lockdowns resulting in significant disruption to all businesses and investments
• Extended lead time for B Corp impact score assessment due to COVID disruptions
• Decline in share price of VivoPower

Mitigation Strategies

• Rapid execution of digital transformation strategy in EdventureCo
• Cost base reduction in Enterprise Office
• On-market share buyback to provide liquidity
• Intention to consider launching a share sale facility (subject to ASIC approval)
• Monitoring indicators of impairment in VivoPower investment

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• B Corp Governance
• ESG and Impact

Social Achievements

• B Corp recertification achieved with a score of 138.8, ranking Arowana (encompassing AWN) at the upper end of the top quartile of B Corps globally

Climate Goals & Targets

Environmental Challenges

• COVID-19 lockdown and regulatory policy related disruptions affected financial results
• Significant organic growth generated by the EdventureCo Group resulting in revenue growth of 21%, primarily driven by the performance of its DDLS business unit which continues to deliver strong revenue growth and also significant and sustained margin improvements despite the impact of COVID-19
• Impacts arising from the COVID-19 pandemic on the financial results of the Group

Mitigation Strategies

• Further rationalise cost base through delisting
• VivoPower completed a registered direct offering in July 2022

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: B Corp

Certifications: B Corp

Awards & Recognition

• Real Leaders Impact Awards

Environmental Metrics

ESG Focus Areas

• Climate Change
• Social Impact
• Governance
• Diversity & Inclusion
• Ethical Sourcing

Environmental Achievements

• Reduced greenhouse gas emissions (GHG) through virtual meetings and supply chain optimization. Specific figures are provided in the GHG emissions track record section but not explicitly stated as a percentage reduction.
• Implemented Pathzero SaaS solution for GHG emissions tracking across Arowana, EdventureCo, and VivoPower.

Social Achievements

• Implemented a new menopause policy.
• Launched the Arowana Wellness Hub, providing resources for physical and mental well-being.
• Adopted a hybrid work model.
• Provided career-focused training to employees.
• Extended B Corp consultancy services to external businesses.

Governance Achievements

• Maintained monthly meetings of the global B Corp Committee to discuss continuous improvements and promote best practices.
• Created an interactive Introduction to B Corporations training module for all new employees.
• Assisted VivoPower subsidiary, Tembo, in navigating their B Impact Assessment.

Climate Goals & Targets

Environmental Challenges

• Reducing Scope 3 emissions.

Mitigation Strategies

• Auditing the supply chain to understand supplier actions to reduce GHG emissions.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: B Corp

Third-party Assurance: Edge Environmental (2020-2022), Pathzero (2023)

UN Sustainable Development Goals

• SDG 3
• SDG 8
• SDG 9
• SDG 12
• SDG 13

The report details how various initiatives contribute to these SDGs, including employee well-being, education, sustainable energy, and plastic recycling.