Climate Change Data

Fingerprint Cards AB (publ)

Climate Impact & Sustainability Data (2020, 2022, 2023)

Reporting Period: 2020

Environmental Metrics

Total Carbon Emissions:23 tCO2e/year (Scope 2)
Scope 2 Emissions:23 tCO2e/year
Total Energy Consumption:921 MWh/year

ESG Focus Areas

  • Trusted, Transparent Business Conduct
  • Environmental Protection and Efficient use of Resources
  • Respecting and Rewarding People
  • Smarter and Safer Solutions

Environmental Achievements

  • Improved climate-change rating to a “B” in CDP’s annual survey (above average at both the European and global levels)
  • Scope 2: 6 ton aggregate reduction or minus 21 percent in CO2 equivalents achieved.
  • 97.2 percent utilization degree reached in average in 2020 for silicon wafers.

Social Achievements

  • Overall temperature and eNPS (Net Promoter Score) showed a better result than 2019 and better than external benchmark in most categories.
  • No serious work-related accidents.
  • Approximately 29 percent of the company’s coworkers are women.

Governance Achievements

  • All employees have confirmed the Code of Conduct.
  • Refresher training on safety and compliance (including Code of Conduct) conducted for all employees.

Climate Goals & Targets

Medium-term Goals:
  • Overall temperature and NPS shall show a positive trend compared to 2020 and be better than benchmark.
  • Reach 35 percent women in our organization (employees) by 2025.
  • CSI should be above benchmark (4.12) for corresponding peer companies and sector.
Short-term Goals:
  • Reduce CO2 emissions pursuant to scope 2 according to market based method with 2020 as the base year (including all offices). 50 percent reduction to be reached 2025. Guarantee of origin to be used when possible.
  • Reduce CO2 emissions from business travels with 2019 as the base year (scope 3). 20 percent reduction to be reached 2025.
  • Reduce CO2 emissions from transportation of goods by air (scope 3).
  • Implement systems for reporting CO2 emissions in the supply chain (wafer and sensor production) and dialogue with suppliers to map possibilities to reduce emissions over time. Systems to calculate CO2 emissions within all relevant scope 3 categories in the supply chain in place during 2021.
  • Improve utilization of materials in production. The utilization degree should be at least 98 percent of produced sensors.

Environmental Challenges

  • Insufficient access to production capacity among major semiconductor manufacturers limiting sales and affecting gross margin.
  • Geopolitical situation increasing domestic demand for silicon chips in China.
  • Global shortage of semiconductors increasing purchase prices.
Mitigation Strategies
  • Intensified efforts to secure more providers of key components, both within and outside mainland China.
  • Investments in new capacity.
  • Improved product mix with a higher share of new sensors to strengthen gross margin.

Supply Chain Management

Supplier Audits: Annual inspection of suppliers; assessment through Responsible Minerals Initiative CMRT

Responsible Procurement
  • All direct suppliers must sign our Code of Conduct for Suppliers
  • Responsible Minerals Initiative (CMRT)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards, Core option

Certifications: ISO 14001, ISO 9001

Third-party Assurance: MOORE KLN AB

UN Sustainable Development Goals

  • Goal 1 (No Poverty)
  • Goal 16 (Peace, Justice and Strong Institutions)

Aadhaar project contributes to SDG 1; biometric solutions for smartcards and mobile phones contribute to SDG 16.

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:6,775 tCO2e
Scope 2 Emissions:480 tCO2e
Scope 3 Emissions:6,775 tCO2e

ESG Focus Areas

  • Ethical and transparent business methods
  • Environmental protection and efficient use of resources
  • Smarter and safer solutions
  • Respect and reward our people

Environmental Achievements

  • 50 percent reduction in Scope 2 CO2 emissions achieved in 2025 through guarantees of origin.
  • Reduction by 20 percent in CO2 emissions from business travel compared to the base year 2019.
  • Continuous work to reduce CO2 emissions from freight transport by air.
  • System for reporting CO2 emissions at the supplier level (wafer and sensor production) implemented.
  • CO2 emissions per sold sensor in 2022 were less than one-fourth of the corresponding figure in 2015.

Social Achievements

  • All employees have confirmed the Code of Conduct.
  • No serious work-related accidents occurred.
  • Less than 1 percent of coworkers affected by work-related long-term sickness absence.
  • Customer Satisfaction Index above the benchmark for comparable companies and industry.

Governance Achievements

  • All employees have confirmed the Code of Conduct.
  • No known incidents of breaches against policy (corruption)
  • No known incidents of bribes or corruption

Climate Goals & Targets

Medium-term Goals:
  • Reach 35 percent women in the organization by 2025.
Short-term Goals:
  • Increase the share of revenue from new segments (PC, under-display sensors, Access, Payment) to around 45 percent by the end of 2023.

Environmental Challenges

  • Sharp decline in demand for smartphones in China due to COVID-19 restrictions.
  • Increased downward pressure on prices due to high inventory levels across the industry.
Mitigation Strategies
  • Implemented cost-saving measures to streamline operations and ensure return to profitability.
  • Completed a set-off issue and a rights issue, generating SEK 341 M to strengthen the balance sheet and liquidity.

Supply Chain Management

Responsible Procurement
  • All direct suppliers must sign our Code of Conduct for Suppliers.
  • Evaluates suppliers through the Responsible Minerals Initiative.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards, Core option

Certifications: ISO 14001, ISO 9001

UN Sustainable Development Goals

  • Goal 7
  • Goal 13

Fingerprints’ solutions reduce risks of fraud and enable secure authentications and payments. Fingerprints’ Aadhaar-certified products contribute to supporting people’s right to an official identity.

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:6,543 tCO2e (Scope 3)
Scope 2 Emissions:613 tCO2e
Scope 3 Emissions:6,543 tCO2e

ESG Focus Areas

  • Ethical and transparent business methods
  • Environmental protection and efficient use of resources
  • Smarter and safer solutions
  • Respect and reward our people

Environmental Achievements

  • 50 percent reduction in scope 2 CO2 emissions achieved in 2025 through guarantees of origin.
  • Reduction by 20 percent in CO2 emissions from business travel compared to the base year 2019.
  • Continuous work to reduce CO2 emissions from freight transport by air.
  • Implementation of a system for reporting CO2 emissions at the supplier level (wafer and sensor production).

Social Achievements

  • Implementation of a new whistleblowing platform.
  • Adoption of a new whistleblowing policy.
  • Increased share of women among employees to 31% in 2023.
  • No serious work-related accidents in 2023.
  • Less than 1 percent of coworkers affected by work-related long-term sickness absence.

Governance Achievements

  • Implementation of a transformation plan including cost optimization, organizational changes, and strategy evolution.
  • Implementation of a new functional organizational model.
  • Appointment of a new executive leadership team.

Climate Goals & Targets

Medium-term Goals:
  • Reach 35 percent women in the organization by 2025.
Short-term Goals:
  • Reduce scope 2 CO2 emissions by 50% by 2025.

Environmental Challenges

  • Intense price competition in the Mobile product group leading to unsustainably low gross margin.
  • Negative outlook for Mobile due to unfavorable industry dynamics and geopolitical risks.
  • Lower sales of biometric door locks due to softness in the Chinese construction sector.
  • Slow revenue ramp-up in the Payment product group.
Mitigation Strategies
  • Launched a Transformation Plan including cost optimization, profitability improvements, organizational effectiveness, and strategy evolution.
  • Redirecting capital and investments away from mobile sensor hardware towards higher-margin existing lines of business and new diversification areas.
  • Focusing on diversification to higher-margin application areas outside of Mobile.
  • Cost optimization program expected to yield savings of approximately SEK 204M annually.

Supply Chain Management

Responsible Procurement
  • All direct suppliers must sign the Code of Conduct for Suppliers.
  • Evaluation of suppliers through the Responsible Minerals Initiative.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14001, ISO 9001

Third-party Assurance: BDO Mälardalen AB

UN Sustainable Development Goals

  • Goal 7
  • Goal 8
  • Goal 10
  • Goal 12
  • Goal 16
  • Goal 17

Fingerprints’ solutions reduce risks of fraud and enable secure authentications and payments; the company is committed to having a diverse workforce with equal opportunities for all; the company works to fulfill the objective that the proportion of female employees will amount to 35 percent by 2025; the company works to reduce its carbon footprint; the company is committed to ethical and transparent business methods; the company works collaboratively with industry associations and other stakeholders on sustainability challenges.