Climate Change Data

JLT Mobile Computers AB (publ)

Climate Impact & Sustainability Data (2020, 2021, 2022, 2023)

Reporting Period: 2020

Environmental Metrics

ESG Focus Areas

  • Environmental responsibility
  • Social sustainability
  • Economic sustainability

Environmental Achievements

  • All JLT’s freight transports are climate compensated as of 2020.

Social Achievements

  • Internal guidelines to ensure that personnel training remains a key priority.
  • Developing a policy for annual contributions to charity, selected by staff.

Governance Achievements

  • Applies the Swedish Corporate Governance Code (except for not having a remuneration committee).

Climate Goals & Targets

Short-term Goals:
  • Gain additional insight into environmental, social, and economic impact and establish measurements to reduce overall impact.

Environmental Challenges

  • COVID-19 pandemic with lockdowns, travel restrictions, and working from home impacting operations.
  • Reduced ability to prospect and meet customers due to travel and meeting restrictions.
  • Supply disruptions due to the pandemic.
Mitigation Strategies
  • Implemented proactive measures to ensure stability (supplier management, inventory control).
  • Cost savings through reprioritization of projects, reduced working hours, and staff reductions.
  • Increased online communication, including hosting a webinar.
  • Close collaboration with partners to secure delivery capacity.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: BFNAR 2012:1

Third-party Assurance: KPMG AB

Sustainable Products & Innovation

  • Development of a new Android-based vehicle-mount computer.

Reporting Period: 2021

Environmental Metrics

ESG Focus Areas

  • Environmental responsibility
  • Social sustainability
  • Economic sustainability

Environmental Achievements

  • All JLT’s freight transport has been climate neutral since 2020.
  • High quality and durability of JLT’s products minimizes maintenance requirements and reduces total waste.

Social Achievements

  • Established JLT Software Solutions AB to drive investment in software development and expand service offerings.
  • Acquired French sales partner ID Work, establishing JLT France to improve service and pursue growth in the French market.
  • Internal guidelines to ensure that personnel training remains a key priority.
  • Respect for different cultures and a common set of values are essential factors for successful cooperation.

Governance Achievements

  • Applies the Swedish Corporate Governance Code (except for not having a remuneration committee).
  • Eight Board meetings held during the year, with fixed agenda items for monitoring key business aspects.

Climate Goals & Targets

Long-term Goals:
  • Maintain an operating margin of 10% over a business cycle and keep net debt below 50% of consolidated equity after deductions for intangible assets.
Medium-term Goals:
  • Build up a complementary software business and establish a strong software development team over the next few years.
Short-term Goals:
  • Roll out first software products from JLT Software in 2022.

Environmental Challenges

  • Global component shortage generated higher procurement costs and negatively affected gross margin.
  • COVID-19 pandemic caused closed borders, delivery disruptions, and home working.
  • Uncertainty in global component supply.
Mitigation Strategies
  • Increased component stock and certain product manufacturing adjustments to limit the impact of the component shortage on customer deliveries.
  • Increased product prices to compensate for higher component costs.
  • Proactive work in management of safety stocks and continuous efforts to find alternative suppliers to limit the impact on deliveries.
  • Investments in safety stocks of critical components to secure delivery capacity.

Supply Chain Management

Responsible Procurement
  • Continuous efforts to find alternative suppliers

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Swedish Annual Accounts Act, BFNAR 2012:1 Annual accounts and consolidated financial statements (K3)

Third-party Assurance: KPMG AB

Sustainable Products & Innovation

  • JLT6012A Android-based vehicle-mounted computer

Reporting Period: 2022

Environmental Metrics

ESG Focus Areas

  • Environmental responsibility
  • Social sustainability
  • Economic sustainability

Environmental Achievements

  • All JLT’s freight transport has been climate neutral since 2020.

Social Achievements

  • Increased market activities, participating in three major warehouse and logistics fairs.
  • Established wholly owned subsidiary JLT France.

Governance Achievements

  • JLT applies the Swedish Corporate Governance Code.

Climate Goals & Targets

Short-term Goals:
  • In 2023, we will focus on understanding where we are now, with the goal of establishing measurements and a matrix that we can use to evaluate, monitor, and reduce our overall impact in the future.
  • In 2023, we plan to investigate other areas in which we may be able to reduce or compensate for our emissions.

Environmental Challenges

  • Global component shortage leading to increased costs and affecting margins.
  • Higher proportion of strategic volume deals with lower margins.
Mitigation Strategies
  • Increased component stocks.
  • Adapted product design.
  • Redesigned products to work around component shortages.
  • Investment in safety stocks of critical components (SEK 19.4 million).

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

  • JLT Insights™ software

Reporting Period: 2023

Environmental Metrics

ESG Focus Areas

  • Social sustainability
  • Environmental sustainability
  • Economic sustainability
  • Corporate governance

Environmental Achievements

  • All JLT’s freight transport has been climate neutral since 2020.

Social Achievements

  • Continued positive development of French subsidiary with 22% growth.
  • Acquisition of a minority stake in Australian partner, Control Synergy Pty Ltd.
  • Centralized management function for more effective control and better resource use.
  • Acquired the property in Växjö, enabling future development based on operational needs and eventual cost reduction.
  • Developing a policy for annual contributions to charity, selected by staff.

Governance Achievements

  • JLT applies the Swedish Corporate Governance Code.
  • Board of Directors comprises a broad representation of ownership, with just over 33 percent of all shares represented on the Board.

Climate Goals & Targets

Long-term Goals:
  • Achieve long-term growth and profitability targets.
Medium-term Goals:
  • Maintain an operating margin of 10% over a business cycle and to keep net debt below 50% of consolidated equity after deductions for intangible assets.
Short-term Goals:
  • Reduce inventories gradually.

Environmental Challenges

  • Declining demand in the warehouse and logistics segment.
  • High inventories due to proactive component purchases during a previous shortage.
  • Bankruptcy of a major US transportation company, resulting in approximately MSEK 15 in lost sales.
Mitigation Strategies
  • Measures taken to reduce the cost base in the second half of the year to adapt to lower revenues.
  • Actively working to gradually reduce inventory levels.
  • Expanding into several geographies and industrial sectors to compensate for weak macroeconomic environment.
  • Related service agreements from the bankrupt customer recognized as profit.

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

  • JLT6012A (Android computer)
  • JLT Insights (cloud service)