Climate Change Data

Environmental Metrics

ESG Focus Areas

• Good health and well-being (SDG 3)
• Decent work and economic growth (SDG 8)
• Industry, innovation, and infrastructure (SDG 9)
• Sustainable cities and communities (SDG 11)

Environmental Achievements

• Lowered CO2 emissions by 299 tons through reduced air travels in the last three years
• Increased sea freight for OBUs from 5.7% to a goal of 10% in 2020
• Reduced electronic components by 35%, total weight of material by 33%, and removed the battery in the transition from RSE650 to RSE651 transceiver

Social Achievements

• Employee Engagement: 4 out of 5 team members ranked themselves as highly motivated and engaged in Q3 2019 employee survey. Hired its first Employee Engagement Manager in 2019.
• No serious lost time accidents or injuries during the year.
• ISO 45001 certification for safety at work.

Governance Achievements

• No deviations from the recommendations in the Norwegian Code of Practice in 2019.
• Established a Code of Conduct, guidelines for Corporate Social Responsibility (CSR) and an Anti-Corruption policy.

Climate Goals & Targets

Environmental Challenges

• Limited ability to scale urban transportation infrastructure with increasing populations
• Increased greenhouse gas emissions and polluted cities
• Challenging to keep up with rapidly changing customer demands and new mobility solutions
• Increased competition in recruiting the “smart brains”
• Difficult to obtain expertise for complex technological challenges
• Several postponements of planned deliveries and low margins on some contracts awarded in 2018 negatively impacted the company’s performance.

Mitigation Strategies

• Improve utilization of existing infrastructure through its advanced traffic management solutions
• Shift traffic from roads to mass-transit solutions through its tolling solutions
• Reduce road traffic through tolling/congestion charging solutions
• Invest heavily in R&D and new solutions
• Build long-lasting, scalable, and transformative partnerships and explore new ways of working
• Offer a strong purpose and a strong social cause
• Offer competitive compensation and exciting career opportunities
• Build its solutions based on open standards and widely-used technology stacks and hence recruit from broad talent pools
• Reduce business complexity to improve execution and resource allocation
• Slim down portfolio by divesting Parking and Infomobility
• Run company through 2 autonomous business units – Tolling and Traffic Management
• Optimize and focus resources and investments

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Environmental performance is part of supplier evaluation.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI, UN SDGs

Certifications: ISO 9001, ISO 14001, ISO 45001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 3
• SDG 8
• SDG 9
• SDG 11

Q-Free's solutions contribute to these goals by improving mobility, safety, and environmental friendliness of transportation.

Sustainable Products & Innovation

• Electronic tolling and congestion charging solutions
• Smart traffic signal operations and freeway management solutions

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Sustainable transportation system
• Professional and attractive employer
• Responsible business conduct

Environmental Achievements

• Reduced travel emissions by 190 tons in 2020 amid the Covid-19 pandemic.
• Increased sea freight for on-board units to 6% in 2020 (goal of 10% for next year).

Social Achievements

• Employee satisfaction score of 7.5 (on a scale of 1-10) in 2020.
• Absence rate (sickness) of 1.4% in 2020 (below national average).
• Zero accidents in 2020.

Governance Achievements

• Established an anonymous reporting mechanism for workplace incidents.
• No reported incidents of corruption or bribery.
• Complies with laws and regulations for listed companies concerning information disclosure.

Climate Goals & Targets

Environmental Challenges

• Low percentage of female employees (17% in 2020).
• Need to implement robust H&S risk assessment in all parts of the value chain.

Mitigation Strategies

• Goal to increase the share of women in Q-Free to 25% by the end of 2023.
• Ongoing efforts to enhance Health and Safety measures, including ISO 45001 certification.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Evaluation of product quality, labor practices, human rights, financial performance, management system, environmental performance, information security, and health and safety.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: ISO 14001:2015 (Q-Free Norge AS), ISO 45001 (Q-Free Norge AS)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 3
• SDG 8
• SDG 9
• SDG 11

Q-Free's solutions contribute to improved traffic solutions, aiming to provide safe, affordable, and sustainable transport while reducing road traffic accidents.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environment and Climate
• Social responsibility
• Governance

Environmental Achievements

• Reduced travel emissions from 530 tons of CO2 in 2016 to 27 tons in 2021 due to the COVID-19 pandemic and increased use of digital meetings.
• Increased the share of OBUs shipped by sea freight to 9% in 2021 (from 6% in 2020).

Social Achievements

• Decreased employee turnover in Norway from 11.8% in 2020 to 6.6% in 2021.
• Achieved a global employee satisfaction score of 7.8 (against index 7.5) as of March 2022.
• Zero accidents for employees and contractors in 2021.
• Initiated a cooperation with ADA, a career network for female tech students.

Governance Achievements

• No deviations from the recommendations in the Norwegian Code of Practice for Corporate Governance in 2021.
• Implemented an Anti-Corruption Compliance procedure.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to component shortages and postponed project deliveries related to Covid-19.
• Russia-Ukraine conflict impacting sales negatively in 2022 and halting deliveries to certain markets.

Mitigation Strategies

• Continued focus on building recurring business models, offering competitive and scalable solutions, streamlining operations, and preserving the reduced cost base.
• Renegotiated financing agreement with main bank, resulting in a more favorable payment structure.

Supply Chain Management

Responsible Procurement

• Collaboration with Norautron to reduce greenhouse gases
• Implementation of WATS test data management to boost continuous improvement in manufacturing

Climate-Related Risks & Opportunities

Physical Risks

• Physical impacts of climate change

Transition Risks

• Transition to a lower-carbon economy

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: TCFD, EU Taxonomy, UN Sustainable Development Goals (SDGs) 3, 8, 9, and 11

Certifications: ISO 9001, ISO 14001, ISO 27001, ISO 45001

UN Sustainable Development Goals

• SDG 3
• SDG 8
• SDG 9
• SDG 11

Q-Free directly contributes to these SDGs through its solutions for improved mobility, safety, and environmentally friendly transportation.

Sustainable Products & Innovation

• GeoFlow Road User Charging technology
• Kinetic™ Mobility ATMS platform
• Kinetic™ CV connected and autonomous vehicle data solution

Environmental Metrics

ESG Focus Areas

• Climate-related disclosures
• Diversity and equal opportunities
• Sustainable product and solution design, supply, and lifecycle management
• Technology development and innovation
• Corporate governance

Environmental Achievements

• 95% of the UK traffic counting network runs on solar panels, reducing reliance on traditional power sources.
• Initiated a tag refurbishment pilot program, refurbishing and placing 90% of collected tags back into the market.
• Started calculating carbon footprint for facilities/vehicles (scope 1) and indirect GHG emission for purchased electricity for one use (Scope 2) and preparing for scope 3 calculations.

Social Achievements

• Launched Kinetic Mobility, a cloud-based traffic management platform.
• Partnered with Transurban, Multicap, and Apricot to deliver business-relevant employment to people with disabilities in Australia.
• Global employee satisfaction was 7.8 (against index 7.5) with a participation rate of 69%.

Governance Achievements

• Continued focus and streamlining of the organization.
• Appointed a new EVP on Sustainability, People and Brand.
• Renewed its signatory to the UN Global Compact.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to the Covid-19 pandemic and the war in Ukraine.
• Rising inflation and salary levels impacting cost base.
• General financial turbulence and potential instability in financial markets.

Mitigation Strategies

• Transitioning the business towards recurring revenue.
• Investing in technology and innovation.
• Building a robust sales force.
• Exploring analytical and data-driven approaches to ESG.

Supply Chain Management

Responsible Procurement

• Local sourcing to reduce lead times, gain control over logistics, and reduce emissions.

Climate-Related Risks & Opportunities

Physical Risks

• Increase in global temperatures affecting markets.

Transition Risks

• Emerging policies and unforeseen regulations.
• Accelerating technological development and increasing raw material costs.

Opportunities

• Aim for sustainability leadership in the industry.
• Explore new alliances and relationships.

Reporting Standards

Frameworks Used: TCFD, UN Sustainable Development Goals (SDGs) 3, 8, 9, and 11, EU Taxonomy

Certifications: ISO 9001, ISO 14001, ISO 27001, ISO 45001

UN Sustainable Development Goals

• SDG 3
• SDG 8
• SDG 9
• SDG 11

Q-Free's vision, mission, values, market position, current strategy, and identity align with these goals.

Sustainable Products & Innovation

• Kinetic Mobility platform
• HI-TRAC EMU3 sensor
• RUC technology

Awards & Recognition

• ITS Australia Connected and Automated Vehicle Award