Climate Change Data

Environmental Metrics

ESG Focus Areas

• Poverty
• Good Health and Well-being
• Quality Education
• Gender Equality
• Industry, Innovation and Infrastructure
• Responsible Consumption and Production

Environmental Achievements

• Reduced engineering home visits by 50% through self-install software and remote device management platform
• Upcycled c50 metric tonnes of devices, extending their life by an estimated 5 years
• Targeting all Amino devices to be shipped in recyclable packaging by end of October 2021

Social Achievements

• 100% of Tier 1 suppliers signed up to supplier Code of Conduct
• Launched #futureisbright graduate program
• Pilot partnership with organization in Czech Republic providing IT training to women and children
• Employee engagement survey showed higher than average Diversity and Inclusion Index scores

Governance Achievements

• Adopted the QCA Corporate Governance Code
• Established a Product and Data Security Committee reporting to the Board
• Implemented IT security training for all employees
• Launched a Tier 1 hardware supplier sustainability audit program

Climate Goals & Targets

Environmental Challenges

• Changing consumer viewing habits
• Cybersecurity threats
• Reliance on limited key suppliers
• Global supply chain disruptions
• International trade barriers
• Recruiting and retaining skilled employees
• Impact of Brexit

Mitigation Strategies

• Continuous market monitoring and strategic review of go-to-market propositions
• Security Committee monitoring threats and reviewing IT security policies
• Maintaining close relationships with key suppliers and diversifying product portfolios
• Using multiple hardware suppliers in South East Asia
• Contingency plans and close monitoring of global events
• Annual succession planning and training/development programs
• Annual remuneration reviews
• Monitoring the situation to manage the risk of volatility in global financial markets

Supply Chain Management

Supplier Audits: 66% of supplier facilities scheduled to be audited to RBA VAP or equivalent by December 2021, 100% by March 2022

Responsible Procurement

• Supplier Code of Conduct aligning with RBA Code of Conduct and UN Global Compact

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB Software and IT Services and Hardware sustainability accounting standards, QCA Corporate Governance Code, UN Global Compact

UN Sustainable Development Goals

• 1
• 3
• 4
• 5
• 9
• 12

Aferian's initiatives contribute to these SDGs through various programs and practices detailed in the report.

Sustainable Products & Innovation

• Self-install software and remote device management platform

Environmental Metrics

ESG Focus Areas

• Anti-corruption
• Board governance
• Customer satisfaction
• Environment and resources
• Environmental & social integration
• Data security
• Labour standards
• Supplier code of conduct
• Diversity, Equality & Inclusion

Environmental Achievements

• Target for 100% recyclable product packaging by end of October 2021 achieved (mostly recycled material used)
• Redundant devices recycled in compliance with WEEE regulations
• Energy efficiency actions: reduced flights, encouraged train travel, walking, and cycling
• Commitment to net-zero carbon emissions by 2025 for operating companies and 2030 for the supply chain

Social Achievements

• Customer satisfaction monitored through a ticketing system with satisfaction indicators
• Regular customer feedback obtained through quarterly business reviews, interactions, and online surveys
• Global #futureisbright graduate programme expanded
• Commitment to 6 UN Sustainable Development Goals (UN SDGs): No poverty; Good health and wellbeing; Quality education; Gender equality; Industry, innovation, and infrastructure; Responsible consumption and production

Governance Achievements

• Annual review of company policies by the Board
• Adoption of the QCA Corporate Governance Code
• Independent Audit Committee reviews corporate governance statements
• Details of significant shareholders (holding at least 3% of issued share capital) updated on website every 6 months
• Product and Data Security Committee meets monthly, using NIST and CIS frameworks for IT security

Climate Goals & Targets

Environmental Challenges

• Minimizing environmental impact of electronics equipment
• Data security risks
• Ensuring compliance with various regional, national, and international guidelines

Mitigation Strategies

• Compliance with WEEE regulations for recycling
• Energy efficiency initiatives
• Use of NIST and CIS frameworks for IT security
• Continuous improvement process monitored by the Product and Data Security Committee
• IT security training for all employees
• Use of third-party tooling to manage 3rd party packages and open-source software

Supply Chain Management

Responsible Procurement

• Supplier code of conduct available on the ESG section of the website

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN SDGs

UN Sustainable Development Goals

• 1. No poverty
• 3. Good health and wellbeing
• 4. Quality education
• 5. Gender equality
• 9. Industry, innovation, and infrastructure
• 12. Responsible consumption and production

Committing 1% of key resources to meet these goals

Environmental Metrics

ESG Focus Areas

• Poverty
• Good Health and Well-being
• Quality Education
• Gender Equality
• Industry, Innovation and Infrastructure
• Responsible Consumption and Production

Environmental Achievements

• Reduced engineering home visits by 50% through self-install software and remote device management platform.
• Upcycled c20 metric tonnes of devices, extending their life by an estimated 5 years.

Social Achievements

• 100% of Tier 1 suppliers signed up to the supplier Code of Conduct.
• Partnership with Czechitas for IT education, including a Digital Academy program.
• Launched employee Wellness Programme including mindfulness, yoga, and coaching resources.
• Charitable donation to the British Red Cross Ukraine Appeal.

Governance Achievements

• Adoption of the QCA Corporate Governance Code.
• ESG-related targets built into executive bonus arrangements for FY2022.
• Establishment of a Product and Data Security Committee.
• Implementation of a continuous improvement process for IT security based on NIST and CIS frameworks.

Climate Goals & Targets

Environmental Challenges

• Changing consumer viewing habits and industry disruption.
• Cybersecurity threats.
• Reliance on a limited number of key suppliers.
• Disruption to the global supply chain (political, social, economic forces, pandemics, natural disasters).
• International trade barriers.
• Recruiting and retaining skilled employees.
• Ongoing impacts of the Covid-19 pandemic.
• Meeting stakeholder demands regarding ESG risks.

Mitigation Strategies

• Continuous market monitoring and strategic review of go-to-market propositions.
• Security Committee monitoring threats and reviewing IT security policies.
• Maintaining close relationships with key suppliers and diversifying product portfolios.
• Using multiple hardware suppliers and maintaining relationships with freight forwarders.
• Contingency plans and monitoring of global events.
• Annual succession planning and review of remuneration structure.
• Enabling remote work and supporting employees with local Covid-19 restrictions.
• Regular ESG Steering Committee meetings to review progress against policies and strategy.

Supply Chain Management

Supplier Audits: 100% of Tier 1 hardware suppliers audited to RBA VAP or equivalent within the last 18 months

Responsible Procurement

• Supplier Code of Conduct aligning with RBA and UN Global Compact

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions or natural disasters impacting suppliers

Reporting Standards

Frameworks Used: SASB Software and IT Services and Hardware sustainability accounting standards, QCA Corporate Governance Code

UN Sustainable Development Goals

• 1
• 3
• 4
• 5
• 9
• 12

Aferian's initiatives contribute to these SDGs through various programs and partnerships.

Sustainable Products & Innovation

• Self-install software, remote device management platform

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Removed all non-recyclable packaging from the Group’s supply chain.
• Achieved target of shipping all streaming devices and accessories using recyclable packaging in 2022.
• Reduced engineering visits by 50% through the use of 'self-install' software and remote device management platform.

Social Achievements

• Launched a global Employee Wellness and Engagement Programme.
• #futureisbright graduate programme launched in October 2020 to attract talent.
• 100% of Tier 1 hardware suppliers operate under our Code of Conduct, which aligns with the RBA Code of Conduct and the UN Global Compact.

Governance Achievements

• Executives were set ESG-related targets as part of their bonus arrangements for FY2023. These targets were met in full.
• Adopted the QCA Corporate Governance Code as the benchmark for measuring adherence to good governance principles.
• Runs a Product and Data Security Committee reporting to the Aferian Plc Board of Directors.

Climate Goals & Targets

Environmental Challenges

• Consumer viewing habits/industry disruption
• Cyber Security
• Reliance on a limited number of key suppliers
• Disruption to the global supply chain
• International trade barriers
• People (recruiting and retaining skilled individuals)
• Banking facility (adhering to financial covenants)
• Foreign exchange fluctuations
• Customer changing buying habits
• Customer credit worthiness
• ESG strategy including the impact from climate change

Mitigation Strategies

• Continually monitors markets and undertakes strategic reviews of go-to-market propositions.
• Security Committee monitors IT security threats and reviews policies and procedures.
• Maintains close relationships with key suppliers and diversifies product portfolios.
• Uses multiple hardware suppliers and sites, maintains relationships with freight forwarders, invested in additional inventory.
• Contingency plans and close monitoring of global events.
• Annual succession planning, training and development, performance reviews, and remuneration structure.
• Extended banking facility term, relaxed covenants, additional actions including new sales pipeline conversion, management of cash and cost base.
• Natural cash flow hedges, no use of hedging instruments.
• Diversified product portfolio, close customer relationships, monthly sales pipeline and order book reviews.
• Credit insurance, letters of credit, up-front payments, monitoring customer creditworthiness.
• Publishes ESG policies and reports on progress, established ESG Steering Committee.

Supply Chain Management

Supplier Audits: 100% of Tier 1 hardware suppliers audited to RBA VAP or equivalent within the last 24 months

Responsible Procurement

• Supplier Code of Conduct aligning with RBA Code of Conduct and UN Global Compact

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions, natural disasters

Reporting Standards

Frameworks Used: SASB Software and IT Services and Hardware sustainability accounting standards, QCA Corporate Governance Code, Science Based Targets Initiative

UN Sustainable Development Goals

• 1
• 3
• 4
• 5
• 9
• 12

Aferian commits 1% of key resources to meet 6 UN SDGs.

Sustainable Products & Innovation

• SaaS platforms reducing need for installer visits
• Software to upcycle Pay TV devices