Napatech A/S
Climate Impact & Sustainability Data (2019, 2020, 2021, 2022, 2023)
Reporting Period: 2019
Environmental Metrics
ESG Focus Areas
- Human Rights
- Labor Standards
- Environment
- Anti-Corruption
- Diversity
- Product Safety
- Supply Chain
Environmental Achievements
- Reduced air travel by 60% compared to 2018 despite a 61% revenue growth.
- Reduced office space and corresponding environmental footprint.
Social Achievements
- Maintained 100% conflict-free products since 2018 (across all product lines).
- Continued focus on developing and retaining employees via structured Employee Development Interviews and increased one-on-one employee satisfaction interviews.
- Regular employee surveys (Pulse Checks) conducted and action plans implemented based on results.
Governance Achievements
- Compliance with Danish Financial Statements Act Section 99a.
- Adherence to RBA (formerly EICC) Code of Conduct.
- Conflict Mineral policy ensuring 100% conflict-free products.
Climate Goals & Targets
Medium-term Goals:
- Increase the presence of women on the Board of Directors to at least 20% by 2022.
Environmental Challenges
- Risk of inadvertently supporting unethical treatment of people in the global supply chain.
- Risk of work overload for employees in the fast-paced high-tech industry.
- Underrepresentation of women in engineering and management.
Mitigation Strategies
- Compliance with RBA Code of Conduct.
- Focus on employee work-life balance, safe working conditions, and fair treatment.
- Policies for smoking, alcohol, and stress management.
- Active recruitment strategy aiming for at least one female candidate in the final three for each position.
- Long-term goal to increase women's presence in management and on the Board of Directors.
Supply Chain Management
Responsible Procurement
- RBA (EICC) Code of Conduct compliance from suppliers.
- Conflict Minerals Reporting Template completion from suppliers.
- Compliance with RoHS, REACH, IBM's Engineering Specification, and Cisco's Controlled Substances Specification.
Climate-Related Risks & Opportunities
Reporting Standards
Frameworks Used: UN Global Compact
Sustainable Products & Innovation
- Energy-efficient products that save on data center power consumption.
Reporting Period: 2020
Environmental Metrics
ESG Focus Areas
- Human Rights
- Labor Standards
- Environment
- Anti-Corruption
- Diversity
- Product Safety
- Supply Chain
Environmental Achievements
- Reduced office space and implemented initiatives to reduce electricity consumption in Denmark headquarters in 2020.
- Reduced travel activity almost entirely in 2020 due to COVID-19.
- Recycles plastic, shredded paper, and printer cartridges in the office.
Social Achievements
- Implemented initiatives to ensure healthy working routines when working from home during COVID-19 lockdowns.
- Continued focus on developing and retaining employees via structured Employee Development Interviews and increased one-on-one employee satisfaction interviews.
- Maintained 100% conflict-free products since 2018 (40G and 100G products) and 2017 (1-gigabit and 10-gigabit products).
Governance Achievements
- Adheres to national regulations on health, working environment, and safety (Denmark and US).
- Complies with the Responsible Business Alliance (RBA) Code of Conduct.
- Has a Conflict Mineral policy with the objective of only using conflict-free 3TG.
Climate Goals & Targets
Long-term Goals:
- At least 20% women on the Board of Directors before 2023.
Environmental Challenges
- Risk of inadvertently supporting unethical treatment of people in the global supply chain.
- Risk of work overload for employees in the fast-paced high-tech industry.
- Underrepresentation of women in engineering and management.
- Environmental impact of producing and delivering products.
Mitigation Strategies
- Compliance with RBA Code of Conduct.
- Initiatives to ensure work-life balance and safe working conditions.
- Active recruitment strategy aiming for at least one female candidate in the final three for each position.
- Long-term goal to increase women's presence on the Board of Directors (target 20% before 2023).
- Minimizing travel through virtual meetings.
- Recycling initiatives in the office.
- Working with suppliers to promote environmentally responsible manufacturing.
Supply Chain Management
Responsible Procurement
- RBA (EICC) Code of Conduct
- Conflict Minerals Reporting Template from Responsible Minerals Initiative
- Material Declaration RoHS
- Compliance with EU RoHS directive
- Compliance with EU REACH Regulation
- IBM’s Engineering Specification (ES 46G3772) and Cisco’s Controlled Substances Specification (EDCS-661823)
Climate-Related Risks & Opportunities
Reporting Standards
Frameworks Used: UN Global Compact
Sustainable Products & Innovation
- Energy-efficient products
Reporting Period: 2021
Environmental Metrics
ESG Focus Areas
- Human Rights
- Labor Standards
- Environment
- Anti-Corruption
- Diversity
- Product Safety
- Supply Chain Responsibility
Environmental Achievements
- Reduced office space in the US and implemented initiatives to reduce electricity consumption in Denmark.
- 100% conflict-free products since 2018 (covering 1G, 10G, 40G, and 100G products).
Social Achievements
- Maintained a 'green smiley' work environment rating from the Danish Working Environment Authority.
- Implemented initiatives to ensure healthy working routines for employees working from home during COVID-19.
- Continued focus on developing and retaining employees via structured Employee Development Interviews and increased one-on-one employee satisfaction interviews.
Governance Achievements
- Complies with The Responsible Business Alliance (RBA) Code of Conduct.
- Has a Conflict Mineral policy with the objective of only using conflict-free 3TG.
- Board of Directors has a long-term goal to have at least 20% women on the Board.
Climate Goals & Targets
Long-term Goals:
- Achieve at least 20% women on the Board of Directors before 2023.
Environmental Challenges
- Risk of inadvertently supporting unethical treatment of people in the global supply chain.
- Risk of employee work overload in the fast-paced high-tech industry.
- Negative impact on employee well-being and health due to COVID-19.
- Underrepresentation of women in the company, particularly in engineering and management roles.
- Environmental impact of producing and delivering products.
Mitigation Strategies
- Compliance with RBA Code of Conduct.
- Conflict Mineral policy and membership in the Responsible Minerals Initiative.
- Initiatives to ensure work-life balance and safe working conditions.
- COVID-19 related initiatives to support remote work and employee well-being.
- Active recruitment strategies aiming for at least one female candidate in the final three for each position.
- Long-term goal to increase women's representation on the Board of Directors.
- Minimizing travel through virtual meetings.
- Recycling initiatives in the office.
- Reducing office space and electricity consumption.
Supply Chain Management
Responsible Procurement
- RBA (EICC) Code of Conduct compliance
- Conflict Minerals Reporting Template
- Compliance with RoHS, REACH, and other relevant regulations.
Climate-Related Risks & Opportunities
Opportunities
- Energy-efficient products
Reporting Standards
Frameworks Used: UN Global Compact
Sustainable Products & Innovation
- Energy-efficient products
Reporting Period: 2022
Environmental Metrics
ESG Focus Areas
- Environment
- Social
- Governance
Environmental Achievements
- Implemented initiatives to reduce electricity consumption in headquarters
- Work with US contract manufacturer to improve environmental performance through more efficient resource use and waste reduction.
- Contract manufacturer is ISO 14001 certified.
Social Achievements
- Maintained 100% conflict-free products since 2018.
- Continued focus on developing and retaining employees via structured Employee Development Interviews and increased one-on-one employee satisfaction interviews.
- Awarded a 'green smiley' indicating satisfactory work environment in Denmark.
Governance Achievements
- No identified cases of corruption or bribery in 2022.
- Worked extensively with supply chain to eliminate any link to Russian smelters.
- Complies with The Responsible Business Alliance (RBA) Code of Conduct
Climate Goals & Targets
Long-term Goals:
- Board of Directors to have at least 20% women before 2024
Short-term Goals:
- Increase women's presence in management to at least 20% by 2025
Environmental Challenges
- Risk of environmental impact from producing and delivering products.
- Risk of inadvertently supporting unethical treatment of people in global supply chain.
- Underrepresentation of women in engineering and management.
Mitigation Strategies
- Actively works to limit adverse environmental impacts.
- Complies with RBA Code of Conduct to ensure safe working conditions and ethical business operations.
- Policy to increase women's presence in management to at least 20% by 2025; aims for at least one female candidate in the final three for recruitment.
Supply Chain Management
Responsible Procurement
- RBA Code of Conduct
- Material Declaration
- EU RoHS directive compliance
- EU REACH Regulation compliance
- IBM's Engineering Specification (ES 46G3772) and Cisco's Controlled Substances Specification (EDCS-661823)
- Conflict Minerals Reporting Template
Climate-Related Risks & Opportunities
Reporting Standards
Frameworks Used: UN Global Compact
Certifications: ISO 14001 (contract manufacturer)
Sustainable Products & Innovation
- Energy-efficient products
Reporting Period: 2023
Environmental Metrics
ESG Focus Areas
- Environment
- Social
- Governance
Environmental Achievements
- Implemented initiatives to reduce electricity consumption in headquarters
- Products can be recycled or disposed of safely
- Contract manufacturer is ISO 14001 certified
Social Achievements
- 100% conflict-free products since 2018
- Employee satisfaction survey results well above benchmark
- Focus on developing and retaining employees via structured Employee Development Interviews and increased one-on-one employee satisfaction interviews
- Added sun protection to offices to address heat issues
Governance Achievements
- No cases of corruption or bribery identified in 2023
- Double-check reviewed process of all expense claims from the sales team
- Compliance ensured through policies, processes, and in-depth validation
Climate Goals & Targets
Short-term Goals:
- Continue work to reduce electricity consumption and have dialogues with suppliers and contract manufacturer to evaluate the possibility of reducing the environmental impact of our product.
Environmental Challenges
- Risk of environmental impact from production and delivery of products
- Risk of supporting unethical treatment of people in the supply chain
- Underrepresentation of women in the company (primarily engineers)
- Potential for employee work overload in a fast-paced industry
- Risk of corruption and bribery in sourcing components from some countries
Mitigation Strategies
- Actively working to limit adverse environmental impacts
- Compliance with RBA (formerly EICC) Code of Conduct
- Conflict mineral policy and screening of components
- Focus on improving work-life balance to attract more female applicants
- Company policies for smoking, alcohol, and stress management
- Regular inspections from Danish Working Environment Authority (Denmark) and adherence to OSHA guidelines (US)
- Anti-corruption policies and training
- Double-check reviewed process of all expense claims from the sales team
- Planned anti-corruption information campaign for 2024
Supply Chain Management
Responsible Procurement
- RBA Code of Conduct
- Material Declaration
- EU RoHS directive compliance
- EU REACH Regulation compliance
- IBM's Engineering Specification (ES 46G3772) and Cisco's Controlled Substances Specification (EDCS-661823)
- Safety certificates
- UL's wiring harness program (for cable assemblies)
- Conflict Minerals Reporting Template
Climate-Related Risks & Opportunities
Reporting Standards
Frameworks Used: UN Global Compact
Certifications: ISO 14001 (contract manufacturer)
Sustainable Products & Innovation
- Energy-efficient products