Climate Change Data

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