Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced environmental impact of manufacturing through the use of in-house 3D printing technology, reducing energy consumption and waste.

Social Achievements

• Prioritized employee well-being; is a service-disabled, veteran-owned, woman-owned, and Hispanic minority-owned business; actively invests in the communities of its employees through Sidus Serves and partnerships with STEM organizations.

Governance Achievements

• Established a governance structure designed to promote transparency, efficiency, and ethics; Board of Directors consists of professionals with strong executive experience, business strategy and leadership skills, including 2 women and 3 independent directors.

Climate Goals & Targets

Environmental Challenges

• Limited operating history; significant losses since inception; need for substantial additional funding; intense competition; reliance on third-party suppliers and manufacturers; hazardous operations; potential for launch failures; evolving government regulations; concentrated ownership; risks associated with international operations; potential for litigation; data security risks; dependence on key personnel; risks associated with acquisitions.

Mitigation Strategies

• Developing an ESG policy to track critical indicators; expanding experienced space hardware operations; commencing and expanding commercial satellite operations; vertically integrated space platform; data monetization strategy; lowering manufacturing cost and schedule; developing business continuity and disaster recovery plans; implementing robust internal controls; pursuing strategic acquisitions, partnerships, and joint ventures; investing in distribution channels and channel partner ecosystem; focusing on international markets; implementing robust intellectual property protection strategies; complying with government regulations; developing a formal Research and Development team.

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• LizzieSat (LS) satellite, partially 3D printed.

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced carbon footprint compared to conventional machining through in-house 3D printing technology for a portion of the satellite bus.
• Recycling of roughly 5,000 lbs. of metal a year coupled with the recycling of any used oil and coolant.

Social Achievements

• Prioritized employee well-being through excellent benefits, programs, educational assistance, and a safe work environment.
• Launched Sidus Serves initiative for community involvement, supporting K-12 education, military/veteran assistance, environmental stewardship, and volunteering.

Governance Achievements

• Established a governance structure designed to promote transparency, efficiency, and ethics.
• Board of Directors consists of 3 independent directors alongside CEO and CTO, including 2 women.

Climate Goals & Targets

Environmental Challenges

• Competition from better-known and well-capitalized companies.
• Risks associated with hazardous operations in satellite subsystem testing.
• Potential for total loss of technology and products in launch accidents.
• Delays in development and manufacture of satellites.
• Difficulty and expense in servicing, upgrading, or replacing customized hardware and software.
• Risk of satellite collisions with space debris.
• Inability to adapt to and satisfy customer demands.
• Maintaining relationships with launch partners.
• Reliance on a limited number of suppliers for raw materials and components.
• Failure of third-party contractors.
• Intense competition in the commercial space market.
• Potential for new service offerings to not materialize.
• Inadequate protection of proprietary intellectual property rights.
• Extensive and evolving government laws and regulations.
• Stringent U.S. export and import control laws and regulations.
• Risks associated with international operations.
• Environmental regulations and potential costs.
• Negative effects of the COVID-19 pandemic.
• Changes in tax laws and regulations.
• Potential conflicts of interest due to CEO's involvement with principal stockholder.

Mitigation Strategies

• Vertical integration strategy combining rapid production with flexible technology insertion points.
• Operational processes to ensure design, manufacture, performance, and servicing of products meet rigorous quality standards.
• Purchase of launch insurance (case-by-case basis).
• Maintaining inventories of spare parts.
• Compliance with best practices and international orbital debris mitigation requirements.
• Vertically integrated manufacturing processes for flexibility and cost control.
• Developing a manufacturing model for rapid response to customer requirements.
• Diversification of launch partners.
• Developing alternative sourcing strategies.
• Implementing robust cybersecurity measures and incident response plans.
• Investing in research and development.
• Utilizing patents, copyrights, trademarks, trade secrets, and contractual rights to protect intellectual property.
• Monitoring and complying with laws and regulations.
• Maintaining registration under the ITAR and obtaining necessary licenses.
• Developing plans to address risks related to international operations.
• Implementing developments that promote environmentally conscious protocols.
• Developing an ESG policy to track critical indicators.
• Implementing business continuity and disaster recovery plans.
• Recourse to debt financing and sale of equity to fund operations.

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• LizzieSat constellation (partially 3D printed)