Climate Change Data

Environmental Metrics

ESG Focus Areas

• People
• Planet
• Governance
• Data Security
• Responsible Vendor Management
• Accessibility

Environmental Achievements

• Signed a new lease for our Belgium warehouse facility that offers energy-saving features (full insulation, energy-efficient heating/cooling, flat roof for solar panels, electric vehicle charging stations).

Social Achievements

• Increased percentage of female employees from 27% in 2021 to 31% in 2022.
• More than half of the 13-person executive team identifies as female, LGBTQ, and/or a person of color in 2022.
• 83% of employees say they feel respected, 88% say they can be themselves at work, and 83% say their manager genuinely cares about their well-being (2022 Employee Engagement Survey).

Governance Achievements

• Established a strong security culture operating under a global Information Security Charter approved by the Audit Committee.
• Implemented an extensive set of security policies, standards, and processes aligned with ISO/IEC 27001/27002.
• SaaS services undergo a SOC 2 type II attestation annually and are ISO 27001, 27017, 27018, and CSA STAR Level 1 certified.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to energy shortages (extreme heatwaves and drought) affecting China-based contract manufacturers.
• High demand for microprocessors for electric vehicles impacting Digipass supply chain.
• Potential impacts of climate change on office facilities, data centers, and employee locations.
• Need to comply with new SEC and EU CSRD regulations regarding climate-related disclosures.
• Meeting ESG/climate requirements of customers and investors.
• Competitiveness in hiring market due to lack of a robust ESG/climate program.

Mitigation Strategies

• Developing more comprehensive processes to integrate climate risk management into the overall enterprise risk management framework.
• Actively evaluating opportunities to reduce GHG emissions (e.g., new warehouse lease with energy-saving features).
• Developing a formal framework for considering ESG issues in company decisions.
• Working towards making ESG factors an integral part of the vendor screening process.
• Implementing a Supplier Diversity Policy.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct (addresses human trafficking, worker’s rights, compliance with regulations, diversity, and health and safety).

Climate-Related Risks & Opportunities

Physical Risks

• Floods, wildfires, sea level rise, hurricanes, extreme heat waves impacting supply chain and operations.
• Impacts on office facilities, data centers, and employee locations.

Transition Risks

• Supply chain dislocations due to transition to alternative energy.
• Increased data center cooling costs due to higher average temperatures.

Opportunities

• Increased demand for OneSpan's solutions due to reduced in-person meetings and increased digital interactions.

Reporting Standards

Frameworks Used: TCFD (partial alignment)

Certifications: SOC 2 Type II, ISO 27001, ISO 27017, ISO 27018, CSA STAR Level 1

Sustainable Products & Innovation

• Digipass devices designed for blind or visually impaired users.

Environmental Metrics

ESG Focus Areas

• People
• Planet
• Cybersecurity
• Accessibility
• Governance

Environmental Achievements

• Moved into a new Belgium warehouse facility with energy-saving features (full insulation, energy-efficient heating/cooling, flat roof for solar panels, electric vehicle charging stations).

Social Achievements

• Rolled out the "InnoBoost" innovation program.
• Launched a successful mentoring program (initially focused on female employees, expanded in its second year).
• Adopted a career ladder program for R&D employees.
• Provided each employee with one paid day off for volunteer activities.
• Increased spend with diverse suppliers from approximately $259,000 in 2022 to approximately $450,000 in 2023.

Governance Achievements

• Established a robust ESG program overseen by the Corporate Governance and Nominating Committee (CGN).
• Lara Mataac, General Counsel and Chief Compliance Officer, is responsible for OneSpan’s ESG efforts.
• More than half of the 8-person executive team identifies as female, LGBTQ, and/or a person of color.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to extreme weather events (e.g., energy shortages in China due to heatwaves and drought in 2022).
• Potential impacts of climate change on office facilities, data centers, and employee locations.
• Meeting the ESG/climate requirements of customers and investors.
• Transition risks related to the shift to a lower-carbon economy.
• Increased costs to comply with climate-related regulations (e.g., EU CSRD, potential SEC rules).
• Competitiveness in the hiring market due to lack of a robust ESG/climate program.

Mitigation Strategies

• Developing processes to monitor and manage climate risks and integrate them into the overall enterprise risk management framework.
• Planning to conduct a scenario analysis of the strategy based on different climate-related scenarios.
• Devoting significant resources to compliance with sustainability regulations.
• Working towards making ESG factors an integral part of the vendor screening process.
• Implementing a Supplier Code of Conduct.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• Security and privacy reviews of vendors with access to OneSpan systems or confidential information
• Supplier Diversity Policy

Climate-Related Risks & Opportunities

Physical Risks

• Supply chain disruptions from floods, wildfires, sea level rise, hurricanes, extreme heat waves
• Impacts on data centers, warehouses, and offices
• Increased insurance costs
• Impacts on employee health, safety, and productivity

Transition Risks

• Supply chain dislocations from the transition to a lower-carbon economy
• Higher data center cooling costs
• Carbon taxes or trading schemes

Opportunities

• Increased demand for solutions enabling secure virtual agreements and interactions

Reporting Standards

Frameworks Used: TCFD