Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainability
• Carbon Reduction

Environmental Achievements

• Reduction in speeding frequency by over 10% for customers using Clarity Dashcam
• Reduction in fatigue-related driving events by over 90% with in-cab alerts and monitoring center intervention
• Toitū CarbonReduce programme underway to benchmark EROAD's GHG emissions

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• COVID-19 lockdowns impacting sales and supply chains
• Loss of an enterprise customer in North America
• Driver shortages
• Global supply chain shortages

Mitigation Strategies

• Focus on integration of Coretex acquisition
• Increased investment in R&D
• Focus on managing risk around global supply chains
• Increased brand marketing spend

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Toitū CarbonReduce

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Clarity Dashcam
• Clarity Solo

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Community Safety
• Environmental Conservation
• Economic Growth
• Climate Action
• Employee Well-being
• Data Security
• Ethical Business Practices

Environmental Achievements

• Joined Toitu carbonreduce programme and obtained certification in May 2022.
• Measured and reported on EROAD’s carbon emissions (17,766.18 tCO2e).
• Refurbished 16,711 units and recycled 14,000 batteries in FY22.
• Reduced fuel usage by 6.2% for drivers with 4 or 5 stars on EROAD’s Leaderboard.

Social Achievements

• Launched a new refreshed mandatory course “Privacy at EROAD”.
• Launched new eLearning module ‘How to write a Development Plan at EROAD.’
• Started development on a new e-learning platform Workday.
• 76% of EROADers recommend EROAD as a great place to work.
• 83% of EROADers feel that EROAD is an inclusive workplace.

Governance Achievements

• Implemented a privacy impact assessment tool.
• Established a dedicated cybersecurity team.
• Introduced the Australian Say On Pay Vote in FY22.
• Maintained an industry-leading uptime of over 99.96% (NZ & AU) and 100% (NA).

Climate Goals & Targets

Environmental Challenges

• Global supply chain pressures impacting component availability and cost.
• Tight labor market impacting talent acquisition and retention.
• Integration of Coretex culture and operations into EROAD.
• Data limitations in measuring some Scope 3 emissions.

Mitigation Strategies

• Purchasing critical components up to 12 months in advance.
• Developing alternative supply sources for hardware.
• Investing in supply chain management team.
• Implementing change management and communication activities for Coretex integration.
• Conducting employee experience workshops to foster a unified culture.
• Working with suppliers to improve data quality for emissions reporting.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• EROAD Sustainable Supplier Questionnaire sent to key suppliers.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products and services to support customer decarbonization.

Reporting Standards

Frameworks Used: GRI, TCFD

Certifications: Toitu carbonreduce

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• 3
• 4
• 9
• 10
• 12
• 13
• 16

EROAD's initiatives align with these SDGs through improved road safety, reduced emissions, employee well-being, ethical business practices, and responsible resource management.

Sustainable Products & Innovation

• Heavy Vehicle Decarbonisation and Recommendation tool (in development).

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• carbon footprint reduction
• customer carbon footprint reduction
• diversity and inclusion

Environmental Achievements

• EROAD reduction target for fuel emissions by 4% by 2025
• EROAD reduction target for electricity emissions by 15% by 2025
• Total EROAD emissions for FY23: 29k tCO2e

Social Achievements

• Launched internal initiative called Downer Drive, providing a roadmap to driving safely and sustainably.
• Achieved 94% reduction in average number of speed events per 100km travelled since installation.
• Percentage of female employees exceeds the percentage of female employees in the technology sector generally.

Governance Achievements

• Voluntarily comply with the Australian “Say on Pay” regime.
• Published a comprehensive remuneration report.
• Put a vote for adoption at the same time as our FY23 ASM.

Climate Goals & Targets

Environmental Challenges

• Challenging economic conditions
• Planned shutdown of the 3G cellular network in New Zealand and Australia from June 2024
• Need to replace 60% of installed 3G devices in ANZ

Mitigation Strategies

• Strategic review to enhance business operations
• Accelerating the swap-out of older model products over a 2-3 year period
• Appointed Goldman Sachs to help identify partnership opportunities in North America

Supply Chain Management

Responsible Procurement

• supplier due diligence process

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Certifications: Toitū carbon-reduce programme

Third-party Assurance: Toitu Envirocare

Environmental Metrics

ESG Focus Areas

• Emissions Reduction
• Waste Reduction
• Community Engagement
• Diversity & Inclusion
• Employee Wellbeing
• Governance

Environmental Achievements

• 16% reduction in Scope 1 emissions (FY24 vs FY23) due to changes in EROAD fleet
• Launch of Sustainability Module in MyEROAD, exceeding adoption targets by 333%
• Launch of a free public-facing emissions calculator for NZ fleets
• 50% increase in EV's registered in fleets YoY
• 240% increase in distance travelled by EV's YoY
• 28% emissions reduction for Mātanga Projects within 6 months of using EROAD
• Reduced greenhouse gas emissions by 3,220kg through e-waste recycling
• Recycled 11,230kg of weight

Social Achievements

• 97% of leaders completed the Leadership Essentials Programme
• 25% of EROADers received awards
• Introduction of Long Service Awards
• Annual Fleet Day with over 800 industry members
• Sponsorship of Australian Rally Championship (ARC)
• Employee volunteer day program
• +48 eNPS for EROAD’s efforts to support diversity and inclusion
• New Diversity and Inclusion strategy approved for FY25 to reduce gender pay gap

Governance Achievements

• Appointment of David Green and Cameron Kinloch to the Board
• Resignation of Graham Stuart from the Board
• Retirement of Tony Gibson from the Board
• Splitting of Remuneration, Talent and Nomination Committee into Nominations and People & Culture Committees
• Revised Board Charter to reflect Co-CEO arrangement and Board’s responsibility for sustainability
• Collaboration with PwC for mandatory climate-related disclosures

Climate Goals & Targets

Environmental Challenges

• Challenging economic environment for enterprise customers
• Competition and new technologies in the telematics industry
• Execution of North America strategy
• Product and platform reliability and scalability
• Supply chain efficiency and working capital management
• Cybersecurity risks
• Large enterprise customer relationships
• Operational complexity across multiple regions
• Network shutdowns and hardware replacement (3G/2G)
• Attracting and retaining highly skilled talent
• General economic conditions
• Climate change

Mitigation Strategies

• Cost management initiatives, achieving $10m in annualised cost savings (FY24)
• Intentional investments in scalable solutions
• Equity raise for financial flexibility
• Investment in AI, partnerships, and innovative technologies
• Appointment of Co-CEO and EVP of Sales & Marketing, upskilling sales team
• Focus on securing and retaining enterprise customers
• R&D for reliability and scalability, leveraging third-party providers
• Strong supplier relationships, improved demand forecasting, debt recovery
• Business continuity planning, investment in platform security, training
• Strengthening customer relationships, updated sales strategy
• Process alignment, enhanced service levels, technology for efficiency
• Project Sunrise for 3G/2G network transition
• Succession planning, career development, outsourcing
• Leveraging product benefits for customer cost optimization, capital reserves
• Climate-related disclosures and risk management

Supply Chain Management

Responsible Procurement

• Supplier management for access to parts for repairs and refurbishments
• Streamlined packaging to reduce freight and emissions

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products
• Opportunities presented by regulatory changes to road user charges

Reporting Standards

Frameworks Used: GRI Standards, UN Sustainable Development Goals (SDGs), TCFD

Certifications: Toitu carbonreduce

Third-party Assurance: KPMG

Sustainable Products & Innovation

• Sustainability Module
• Emissions Calculator
• EV support features