Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental and Sustainability
• Employee Wellbeing
• Business Ethics

Environmental Achievements

• Most hardware products produced in Taiwan and shipped by boat instead of air, reducing CO2 emissions and shipping costs.
• Minimized energy use, recycling, and source sorting.

Social Achievements

• Improved employee satisfaction survey results.
• Training of executives and senior executives in leadership and occupational health and safety.
• English as a group language with about 25 different nationalities.

Governance Achievements

• Recognition and compliance with the Code of Conduct and Information Policy.
• Annual reminder and confirmation from all employees regarding business conduct guidelines.
• Quarterly customer satisfaction surveys.

Climate Goals & Targets

Environmental Challenges

• Technical problems with delivery to Canon IT Solutions related to local characters and IT systems.
• Delayed commercial launch with Nokia.
• Dependence on larger accounts affecting sales and strategic decisions.
• Competition against major multinational actors.
• Risk of software errors.
• Limited resources for 24/7 customer support.
• Potential supply chain disruptions from hardware suppliers.
• Risk of intellectual property infringement.
• Potential patent litigation.
• Impact of economic situations on customer willingness to buy.
• Risk of inadequately signed agreements.
• Currency fluctuations affecting financial position.
• Risks associated with the China subsidiary.
• Risks related to factoring and supplier obligations.

Mitigation Strategies

• Maintained good relationship with Canon ITS and found a solution.
• Received first order from Nokia Networks in March.
• Established a sales team in the African Marketplace and prepared for a Nordic Retail Sales Organization.
• Implemented measures to improve communication and market positioning.
• Improved quality management system to comply with ISO 9001:2015.
• Applied factoring with respect to customer billing and credit insurance.
• Continuous work on identifying, assessing, evaluating, and preventing risks.

Supply Chain Management

Responsible Procurement

• Worked to avoid harmful substances in products and during production.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: IFRS

Certifications: ISO 9001

Third-party Assurance: DNV GL

Environmental Metrics

ESG Focus Areas

• Environmental and Sustainability
• Employee Wellbeing
• Business Ethics

Environmental Achievements

• Reduced carbon dioxide emissions by shifting to boat shipping for hardware products from Taiwan.
• Implemented recycling programs for batteries and electronics.
• Avoided unnecessary travel, promoted use of telephone and video meetings, and minimized energy use.

Social Achievements

• 94% of customers would recommend Clavister to their peers (based on a customer satisfaction survey).
• Maintained an attractive workplace and a healthy, open and safe working environment for employees from 25 different nationalities.
• Implemented individual development plans for all employees.

Governance Achievements

• Annual reminder and confirmation of Code of Conduct and Information Policy from all employees.
• Quarterly customer satisfaction surveys with results well above set goals.
• Quality audits conducted internally and by external operator DNV GL (The Norwegian Veritas), annually reviewing ISO 9001 certification.

Climate Goals & Targets

Environmental Challenges

• Dependence on larger accounts affecting sales and strategic decisions.
• Competition against major multinational actors.
• Risk of underestimated development time for software.
• Potential software errors.
• Unreasonable customer demands.
• Limited resources for 24/7 customer support.
• Hardware supplier delivery delays.
• Risk of key personnel leaving the group.
• High competition for skilled personnel.
• Risk of intellectual property infringement.
• Fluctuations in customer willingness to buy due to economic conditions.
• Risks associated with international agreements.
• Currency fluctuations affecting supplier and customer payments.
• Risks associated with the China subsidiary due to political decisions or tax situations.

Mitigation Strategies

• Applied factoring with credit insurance for customer billing (covering 90% in case of bankruptcy).
• Currency hedging through settlement of cash and cash equivalents.
• Continuous work on identifying, assessing, evaluating and preventing risks.
• Quality work practices based on continuous improvement to meet customer needs.
• Improvement of the management system to comply with ISO 9001:2015 requirements.
• Loan agreements with Tagehus and EIB to support growth plans.

Supply Chain Management

Responsible Procurement

• Working to avoid environmentally harmful substances in hardware production.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: IFRS

Certifications: ISO 9001

Third-party Assurance: Ernst & Young

Environmental Metrics

ESG Focus Areas

• Work environment
• Sustainability
• Ethical business conduct

Environmental Achievements

• Reduced transportation costs and carbon dioxide emissions by using sea transport for hardware products.
• Reduced shipping costs and lower environmental impact by appointing an additional manufacturer in Örnsköldsvik, Sweden.

Social Achievements

• Maintained a healthy, open and safe work environment.
• Encouraged employees to maintain and develop good health.
• Ensured no employee discrimination.
• Used English as the group language, housing around 25 different nationalities.
• Company managers and senior executives underwent training in leadership and work environment issues.

Governance Achievements

• Established a working procedure regulating the division of labor between the Board, the chairman, and the CEO.
• Held 22 minuted board meetings in 2020.
• Ensured recognition and compliance with the code of conduct and information policy.

Climate Goals & Targets

Environmental Challenges

• Dependence on larger accounts affecting consolidated turnover and strategic decisions.
• Competition with major multinational actors.
• Risk of underestimated development time for programming and testing.
• Potential software errors.
• Limited resources in customer support during periods of increased issues.
• Hardware supplier delivery issues.
• Risk of key personnel leaving the group.
• Risk of intellectual property rights infringement.
• Client willingness to buy affected by the economy and market forces.
• Risks related to insufficient coverage in agreements.
• Negative effects of recurring lockdowns and restrictions.
• Currency fluctuations affecting supplier and customer payments.
• Interest-rate risks associated with convertible loan and factoring.
• Time between product delivery and customer payment.
• Supplier prepayment risks.
• Covid-19 impact on customer projects, distribution channels, and ability to meet customers.

Mitigation Strategies

• Continuous work to identify, assess, evaluate, and prevent risks.
• Cost structure optimization to accelerate path to profitability.
• Improved gross margins and reduced operating costs.
• Rights issue to strengthen the balance sheet and reduce operational and financial risk.
• Major reorganization to sharpen commercial focus.
• Unified commercial division with a clear growth and performance agenda.
• Reinforced end-customer relations.
• Switching to remote working, limiting travel, and digital meetings with customers and partners.
• Extended long-term planning and increased stock buildup to manage supply chain disruptions.
• Currency hedging by offsetting incoming and outgoing payments in equal currency.
• Factoring without insolvency rescission for customer invoices with credit insurance.
• Crisis preparedness team to handle Covid-19 work environmental aspects.

Supply Chain Management

Responsible Procurement

• Strive to avoid potentially harmful substances in products and production.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: IFRS

Certifications: ISO 9001

Third-party Assurance: DNV GL

Environmental Metrics

Environmental Achievements

• Reduced carbon dioxide emissions and shipping costs by avoiding unnecessary trips, promoting video conferencing, and reducing energy consumption. Recycling and waste separation implemented for waste, batteries, and electronics.

Social Achievements

• Increased proportion of women employees to 16% (from 13%), and 21 employees (from 19) in unspecified minority groups. Employee satisfaction surveys show results above targets. Initiatives to create an attractive and sustainable workplace, including addressing employee well-being and preventing stress-related ailments.

Governance Achievements

• Established a new security regimen to prevent the misuse of Clavister's solutions by corrupt or criminal players. Cancelled a purchase order from a global customer where the end customer was likely based in Russia.

Climate Goals & Targets

Environmental Challenges

• Competition with major multinational actors. Supply chain disruptions due to the pandemic (component supply and shipping delays). Travel restrictions impacting customer meetings and sales. Dependence on larger accounts affecting sales and strategic decisions. Risks related to software development (underestimated development time, undiscovered bugs). Limited customer support resources in case of significant increase in reported issues. Hardware supplier prioritization of larger players potentially affecting product quality and delivery times. Risks related to intellectual property rights. Economic downturn potentially impacting network security investments. Risks related to insufficient coverage in agreements with international/national parties. Currency fluctuations affecting financial position. Risks related to time between product delivery and customer payment (delayed payments or bankruptcy). Risks related to suppliers requiring prepayment but failing to fulfill commitments. Risks related to key personnel leaving the group. Risks related to Covid-19 pandemic.

Mitigation Strategies

• Contingency plan to strengthen liquidity in case of cash flow deterioration. Targeted industry focus through verticalization. New SaaS-based business model increasing recurring subscription revenue. Investments in stronger sales management. Significant cost optimization program launched to reduce cash operating expenses by 20%. Remote working and limiting travel to protect employee safety and manage pandemic impact. Extended long-term planning and increased stock buildup to safeguard hardware supply. Continuous monitoring and evaluation of Covid-19 impact on operations. Crisis preparedness team established to handle work environmental aspects of Covid-19. Negotiation and refinancing of convertible debt instrument with Norrlandsfonden. Renegotiation and extension of repayment date of the 20 MEUR loan to EIB. Application for deferral of payment of taxes and fees as part of the government Covid-19 support. Further measures to strengthen liquidity or reduce negative cash flow if necessary.

Supply Chain Management

Responsible Procurement

• Strive to avoid potentially harmful substances in products and production. Shipping hardware products by sea instead of air wherever possible.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: IFRS

Certifications: ISO 9001

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Shipped hardware products produced in Taiwan by sea instead of air wherever possible, reducing carbon dioxide emissions.

Social Achievements

• Clavister Employee Satisfaction Index continued to rise in 2022, resulting from a systematic approach to employee surveys.
• The proportion of women increased slightly to 18% (16).

Governance Achievements

• Renegotiated the repayment schedule for the EUR 20 million loan from the European Investment Bank (EIB), extending the repayment term.

Climate Goals & Targets

Environmental Challenges

• Hardware supplier unable to deliver agreed volumes on schedule.
• Fierce competition to recruit programming, testing, and development staff.
• Group’s intangible assets largely unprotected by patents.
• Deteriorated economy impacting network security investments.
• Component shortages and macroeconomic situation impacting hardware costs.
• Covid-19 pandemic affecting distribution channels and lead times.
• War in Ukraine impacting global conditions in logistics chains.

Mitigation Strategies

• Extended long-term planning and increased stock build-up to safeguard hardware supply.
• Cost optimization program to reduce operating expenses.
• Renegotiation of terms for the 20 MEUR loan from the European Investment Bank (EIB).
• Swedish tax payment support related to the Covid-19 pandemic.
• Adjusted hardware pricing to offset increased costs.
• Hybrid approach combining face-to-face and remote work.
• Increased warehouse building to safeguard hardware supply.

Supply Chain Management

Responsible Procurement

• Strive to avoid potentially harmful substances in products and production.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: IFRS

Certifications: ISO 9001