Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Social Sustainability
• Governance

Environmental Achievements

• Reduced energy consumption through replacement of air conditioning units and lighting (Porto Alegre)
• Recycled redundant IT equipment (Oxford)
• Refurbished and donated redundant laptops (All locations)
• Offered Cycle to Work Scheme to all UK staff

Social Achievements

• Increased number of staff to 168 (2022: 117)
• Implemented reward structures to benefit employee development
• Addressed employee survey feedback and made improvements to pay and conditions
• Actively working with the UK Electronics Skills Foundation to offer undergraduate scholarships
• Promoting STEM subjects in schools, with a focus on encouraging more girls to pursue a career in engineering (UK, Brazil, India)
• Launched Special Interest Groups initiative

Governance Achievements

• Engaged Demyst Board Sciences for an independent external review of Board performance
• Established an Audit Committee and Remuneration Committee with formally delegated duties and responsibilities
• Adopted a share dealing policy
• Implemented a robust anti-corruption and anti-bribery policy
• Developed and implemented an Anti-Slavery and Human Trafficking Policy

Climate Goals & Targets

Environmental Challenges

• Outbreak of Russia/Ukraine war impacting global economy and supply chains
• Imposition of economic sanctions on Russia
• Chinese/Taiwan confrontation threatening silicon chip supply
• Rising interest rates potentially impacting investment decisions
• Customers consolidating their supply chain
• Failing to successfully implement growth strategies
• Cybersecurity threats
• Attraction and retention of key employees
• Exposure to exchange rate fluctuations
• Customer concentration
• Economic recession

Mitigation Strategies

• Monitoring specific impacts of the war and maintaining mitigation to limit impact on profitability
• No significant trading relationship with Russia or countries on embargo listings
• Nurturing relationships with foundries not located in Taiwan
• Focusing on high-growth markets (automotive, industrial, medical wearables, space communications)
• Working towards a reduction in customer concentration
• Regular monitoring of strategic goals and progress
• Implementing preventative security measures and upgrading IT security
• Improving working environment, compensation, and offering challenging tasks
• Using natural hedge and foreign exchange rate hedge forward contracts
• Growing supply revenues to reduce reliance on single customers
• Focusing on specific customers with long-term applications

Supply Chain Management

Responsible Procurement

• Engaging with suppliers to support environmental performance metrics and improvement programs

Climate-Related Risks & Opportunities

Awards & Recognition

• IPO of the Year by Small Cap Network
• Company of the Year Award (UK TechWorks Award)
• Young Engineer of the Year Award (UK TechWorks Award)
• TechNES Design Award (UK TechWorks Award)

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Employee Wellbeing
• Ethical Business Conduct

Environmental Achievements

• Carbon offsetting on all outgoing UK shipments
• Improved supply chain management to reduce emissions per device
• Reducing waste and conserving energy

Social Achievements

• Employee Surveys held and Focus Groups being developed to identify actions on employee wellbeing
• Introduction of Culture Audit
• Hybrid Working Policy
• Private Health Care (UK)
• Share Options Programme
• Future Leaders’ Training completed
• Special Interest cross-section groups
• Working with the UK Electronics Skills Foundation (UKESF) and with local universities in Brazil & India to offer undergraduate scholarships
• Donations of refurbished laptops to underprivileged school children (India)
• Promoting STEM and careers for Women in Engineering at local schools & universities
• College sponsorships for local students (India)

Governance Achievements

• Board Evaluation Programme
• Code of Professional Conduct
• Board participation in Future Leaders’ Training and Special Interest Groups
• Business Continuity Structure
• Environmental Management System
• Secured improved relationships with critical suppliers
• Further investment in improved data security & IT systems
• Introduction of Environment Committee
• Launch of quarterly environment newsletter
• Encouraging suppliers to have a net zero plan

Climate Goals & Targets

Environmental Challenges

• Outbreak of Russia/Ukraine war and the Israeli/Hamas war
• Imposition of economic sanctions
• Chinese/Taiwan confrontation
• Impact of rising interest rates
• Customers consolidating their supply chain
• Failing to successfully implement our growth strategies
• Cybersecurity
• Attraction & retention of key employees
• Exposure to exchange rate fluctuations
• Future Customer supply volumes
• Third party suppliers and supply chain
• Failure to successfully develop ASICs
• Product liability and insurance risk
• Compliance with loan agreements
• Climate change
• Customer concentration
• Economic recession

Mitigation Strategies

• Maintaining a good and open relationship with our suppliers to ensure that any possible delay or pricing impacts can be managed appropriately
• We do searches on all companies to make sure they are not on the US/UK government banned entity list. We also have systems in place to make sure we comply with current Government export control rules.
• The Company has nurtured, and continues to nurture, relationships with foundries not located in Taiwan including foundries in Europe, USA and Singapore.
• The Company has aligned its strategy with its focus on the automotive, industrial, healthcare wearables and space communications which are all markets which are forecast to have rapid increases in demand for ASICs.
• The Company mitigates against this risk by working towards a reduction in customer concentration over the medium-term.
• Management focus their efforts on addressing the Company’s strategic goals and objectives and have clear actions focused on their achievement.
• The Company implements preventative security measures to monitor, prevent, detect, address and mitigate these threats.
• Management regularly engages with employees to create an attractive working environment.
• The Company makes sales in foreign currencies and makes purchases in those currencies. The Directors believe that the majority of the Group’s exposure to foreign exchange rate fluctuations is mitigated by a natural hedge on sales and purchases.
• The Group looks to mitigate this risk through its stated aim of diversifying its customer base to avoid being overly reliant on one large supply customer.
• The Group ensures that it enters into contractual arrangements to supply key services with very reputable suppliers.
• The Group mitigates the risk of failing to meet required specifications by investing in best-in-class development tools and has a proven quality management system.
• The Group operates extensive insurance coverage, across its operations, to cover any loss incurred where possible.
• Compliance with the terms of the loan agreements is monitored by the Finance department.
• The Group assesses physical climate-related risks, such as acute risks (flooding, high winds) and chronic risks (increased average temperatures) across all Group sites and suppliers where operational disruption may hold significant financial risk.
• As the Company grows its supply revenues the reliance on a single customer reduces and this will continue to be the case in the future.

Supply Chain Management

Responsible Procurement

• Improved supply chain management to reduce emissions per device
• Encouraging suppliers to have a net zero plan

Climate-Related Risks & Opportunities

Physical Risks

• flooding, high winds
• increased average temperatures