Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Social Responsibility
• Governance

Environmental Achievements

• Became carbon neutral across Scope 1 and 2 emissions (190.3 tonnes of CO2e offset).

Social Achievements

• Donated €233,000 to non-profit organizations helping Ukrainians.
• Developed tools in portals to help integrate Ukrainian refugees into local society.
• Employee share awards program.

Governance Achievements

• Appointed an additional independent non-executive director.
• Achieved full compliance with the UK Corporate Governance Code 2018 for all Board Committees.

Climate Goals & Targets

Environmental Challenges

• Geopolitical risk (war in Ukraine causing temporary traffic drop).
• Disruption to customer and/or supplier operations (pandemic recovery).
• Competition.
• Cybersecurity threats.
• Climate change (physical and transition risks).

Mitigation Strategies

• Maintaining a flexible cost base.
• Remaining market leaders with value-added products.
• Continuous platform improvements.
• Investment in security systems.
• Disaster recovery and business continuity plans.
• Commitment to environmental responsibility, emission reduction, renewable energy, and carbon offsetting.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• New regulations on carbon emissions

Reporting Standards

Frameworks Used: TCFD

Environmental Metrics

ESG Focus Areas

• Climate action
• Gender equality
• Decent work and economic growth
• Peace, justice, and strong institutions
• Responsible consumption and production

Environmental Achievements

• Achieved carbon neutrality for 2022 emissions by offsetting carbon footprint through UNFCCC-certified climate-friendly projects.
• 34% of electricity consumed in 2022 was from renewable sources.

Social Achievements

• Donated €0.2 million to support Ukrainian refugees.
• Developed tools in portals to help integrate refugees into local society faster.
• 51% of employees were female as of 30 April 2022.

Governance Achievements

• Established an ESG working group.
• Improved cybersecurity by implementing DDOS protection and bot management systems.
• Migrated all services to a new infrastructure and set up a new infrastructure to accommodate a disaster recovery site.

Climate Goals & Targets

Environmental Challenges

• Geopolitical risk due to the war in Ukraine (temporary 20-30% drop in traffic KPIs).
• Supply chain disruptions affecting the used car market.
• High inflation in the Baltic region.

Mitigation Strategies

• Maintaining a flexible cost base.
• Continual improvements to platforms and product propositions.
• Maintaining healthy liquidity headroom.

Supply Chain Management

Responsible Procurement

• Engaging only with suppliers who meet ethical standards.

Climate-Related Risks & Opportunities

Physical Risks

• Increased severity of extreme weather events
• Rising mean temperatures
• Extreme variability in weather patterns

Transition Risks

• Internal combustion engine vehicles ban
• Higher taxation on transactions of internal combustion engine vehicles
• Consumers switching to electric vehicles
• Energy Performance Certificate becomes mandatory in ads
• Consumers shifting to sustainable real estate
• Property detail reporting becomes more onerous for non-professionals/privates
• New regulations reduce stock on the market

Opportunities

• Opening of new market segments (e.g., advertising EV charging infrastructure)
• Introduction of yearly internal combustion engine vehicle ownership tax
• New environmental regulations reduce mortgage availability
• Increased cost of materials
• Increased climate awareness
• Fulfilling environmental reporting and sustainability goals

Reporting Standards

Frameworks Used: TCFD

UN Sustainable Development Goals

• Goal 7
• Goal 13

Our approach to responsible business aligns with the SDGs.

Environmental Metrics

ESG Focus Areas

• GHG Emissions
• Air Quality
• Energy Management
• Water & Wastewater Management
• Waste & Hazardous Materials Management
• Ecological Impacts
• Physical Impacts of Climate Change
• Labor Practices
• Employee Health & Safety
• Employee Engagement, Diversity & Inclusion
• Access & Affordability
• Product Quality & Safety
• Customer Welfare
• Selling Practices & Product Labelling
• Product Design & Lifecycle Management
• Business Model Resilience
• Supply Chain Management
• Materials Sourcing & Efficiency
• Human Rights & Community Relations
• Customer Privacy
• Data Security
• Business Ethics
• Competitive Behaviour
• Management of the Legal & Regulatory Environment
• Critical Incident Risk Management
• Systemic Risk Management

Environmental Achievements

• Reduced emissions by 45%
• Increased the portion of electricity used from renewable sources from 63% to 73%, while emission-free electricity was increased from 66% to 87%

Social Achievements

• Maintained employee tenure at 8 years
• Employee engagement survey showed that more than 95% of employees are proud to be a part of BCG team
• Maintained gender diversity with a split of women/men: 51:49

Governance Achievements

• First SASB report completed
• Introduced modifications to the Whistle-Blowing Policy, including the installation of a local inbox for the office and communication to staff about the option of contacting the Audit Committee Chair for whistle-blowing reasons

Climate Goals & Targets

Environmental Challenges

• Increased severity of extreme weather events may disrupt commercial customers' behaviour, affect the availability of websites and result in disruption to the provision of services from our service providers.
• Rising mean temperatures may result in heatwaves, which would increase cooling costs in offices and data centres.
• Extreme variability in weather patterns may increase heating costs in our offices in the winters and cooling costs in our offices and data centres in the summers.
• Internal combustion engine vehicles ban in the Baltics may lead to reduced volume of ads.
• Increasing the current taxation on transactions of internal combustion engine vehicles may reduce the volume of adverts.
• If consumers shift to electric vehicles, we will have to tailor our business by adding additional filters and features to improve the search and sales of electric vehicles.
• If stock is reduced on the market due to increasing environmental regulations, the volume of transactions and ads will decrease, leading to decrease in revenue from the real estate segment.
• Reduced mortgage availability due to environmental regulations may decrease the number of transactions and increase the length of ads being advertised.
• Climate change and environmental regulations may result in increasing raw material prices.

Mitigation Strategies

• Updated the list of physical and transition risks as well as climate-related opportunities
• Stress-tested climate-related risks and opportunities in three different climate scenarios (Orderly, Disorderly, Hot house world)
• Reviewed and updated the Group’s risk register with climate-related risks and opportunities
• Each member of the Senior Management endorsed the risk management framework and, as risk owners, are responsible for assessing and managing climate-related risks for their respective business areas.
• The ESG working group is responsible for assessing and managing climate-related risks that are general to the Group and monitoring emerging regulatory requirements.

Supply Chain Management

Responsible Procurement

• BCG’s policy is to engage only with suppliers who meet our ethical standards. Potential suppliers are assessed based on their geographical location, nature of services provided and their reputation.

Climate-Related Risks & Opportunities

Physical Risks

• Increased severity of extreme weather events
• Rising mean temperatures
• Extreme variability in weather patterns

Transition Risks

• Internal combustion engine vehicles ban
• Higher taxation on transactions of internal combustion engine vehicles
• Consumers switching to electric vehicles
• New regulations reduce stock on the market
• Increased cost of materials

Opportunities

• Opening of new market segments, such as advertising EV charging infrastructure
• Introduction of yearly internal combustion engine vehicle ownership tax
• New environmental regulations reduce mortgage availability
• Increased climate awareness
• Fulfilling environmental reporting and sustainability goals

Reporting Standards

Frameworks Used: SASB

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 8 (Decent Work and Economic Growth)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)
• Goal 16 (Peace, Justice and Strong Institutions)

Our approach to responsible business aligns quite naturally with these goals.

Environmental Metrics

ESG Focus Areas

• Climate change
• Gender equality
• Decent work and economic growth
• Responsible consumption and production
• Peace, justice, and strong institutions

Environmental Achievements

• Reduced absolute Scope 1 and 2 emissions by 70% from a 2022 base year
• Increased the portion of electricity used from renewable sources from 63% in 2022 to 88%
• Achieved carbon neutrality across direct operations
• Reported Scope 3 carbon emissions for the first time

Social Achievements

• Maintained average employee tenure at 8 years
• Employee engagement survey showed >95% of employees are proud to work at BCG and would recommend it
• Maintained gender diversity with a 50:50 split between men and women
• Donated €0.2 million to selected charitable causes

Governance Achievements

• Introduced new policies: AI Policy, Confidential Information Policy, Code of Conduct, Supplier Code of Conduct and Disaster Recovery Policy
• Improved data security practices with 2FA authentication and MDM solution
• Optimised personal data deletion processes in compliance with GDPR
• Increased cyber security and GDPR awareness through employee training

Climate Goals & Targets

Environmental Challenges

• Geopolitical risk (war in Ukraine)
• Economic conditions (inflation, supply chain disruptions)
• Disruptions to customer and/or supplier operations
• Competition risk
• Laws & regulations
• Technology risks (cyberattacks, data breaches)
• Climate change (physical and transition risks)

Mitigation Strategies

• Maintaining a flexible cost base
• Flexible capital allocation policy
• Market leadership, value-added products
• Platform improvements, enhanced product offerings
• Healthy liquidity, unused credit facility
• Diversified revenue streams
• Working with reliable third parties
• Incident management process
• Investment in security systems
• Continuous threat monitoring
• Regular security testing, disaster recovery plan
• Internal audit reviews
• Environmental responsibility, emission reduction, renewable energy, carbon offsetting
• Adaptation to climate change awareness and regulations

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Business Partner Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Rising mean temperatures
• Extreme variability in weather patterns

Transition Risks

• Higher taxation on ICE vehicles
• ICE vehicle bans
• Consumer shift to EVs
• New regulations reducing real estate stock

Opportunities

• Advertising EV charging infrastructure
• Yearly ICE vehicle ownership tax
• New environmental regulations reducing mortgage availability
• Increased cost of materials
• Increased climate awareness

Reporting Standards

Frameworks Used: TCFD, SASB

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 5 (Gender equality)
• Goal 8 (Decent work and economic growth)
• Goal 12 (Responsible consumption and production)
• Goal 13 (Climate action)
• Goal 16 (Peace, justice and strong institutions)

Initiatives contribute to these goals through emission reduction, renewable energy use, employee engagement, diversity and inclusion, community investment, and ethical business practices.

Sustainable Products & Innovation

• Car history check service
• Data product for competitor analysis
• Property rental services with contract signing and insurance
• Job candidate selection tools
• Service agreement signing option
• Buy now, pay later feature
• Parcel self-service platform

Awards & Recognition

• Ranked within top 10 best performers in FTSE Women leaders review 2023 (FTSE250)