Climate Change Data

Environmental Metrics

ESG Focus Areas

• Products that protect users
• Sustainability in the supply chain
• Our employees
• Our impact on the climate and the environment

Environmental Achievements

• Continued analysis of environmental impact, focusing on CO2 emissions; review and limitation of manufacturing process footprint and business-related travel; use of recyclable packaging materials; encouragement of green transportation options by customers.

Social Achievements

• Employee survey showed strong improvement (index of 80); zero occupational injuries leading to sick leave; no cases of discrimination reported; expanded and organized sustainability initiatives; conducted stakeholder dialogues; updated materiality analysis; launched a whistleblower service.

Governance Achievements

• Established a structured approach to working with internal control using the COSO framework; adopted a number of governing documents and instructions to communicate a clearly defined internal control environment; implemented an annual risk process; established control activities in relation to control targets; developed a structured approach to working with internal control, applying the COSO framework.

Climate Goals & Targets

Environmental Challenges

• Competition from new technology; demand for products may be impacted by external factors (changed test standards, unfavorable test results); dependence on a few large customers; potential for missing important steps in biomechanical developments in helmet safety; production-related quality problems; loss, improper handling or dissemination of information related to product development; ability to attract and retain the right skills; ability to defend the company's patents; product liability and legal risks; dependence on trends relating to foreign currency; impact of Covid-19.

Mitigation Strategies

• Active work to ensure correct test helmet testing standards; active dialogue with universities; investment in marketing; constant product development; patent strategy; quality assurance procedures and documentation; proactive quality controls; correct handling of confidential information; confidentiality policy; skills and development plans for staff; documentation and process control; in-house intellectual property expertise; legal advisors; patent strategy; comprehensive insurance coverage; training program for customers; hedging 50 percent of forecast sales in USD; currency contracts.

Supply Chain Management

Supplier Audits: All suppliers bi-yearly

Responsible Procurement

• Supplier Code of Conduct; zero tolerance for corruption and human rights violations; regular audits to ensure compliance; review and approval of new suppliers by Head of Operations and/or CEO.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: Null

Third-party Assurance: KPMG AB

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate
• Our employees
• Our supply chain
• Our products

Environmental Achievements

• Achieved target of using only recycled packaging materials.
• Commenced collaboration with suppliers to make products more sustainable.
• Reduced CO₂ emissions from air travel from 3.75 tons per employee in 2019 to 0.39 tons per employee in 2021.
• 100 percent of Mips’ electricity consumption in Sweden came from renewable energy sources.
• Climate compensated for electricity consumed in China through a Renewable Energy Certificate (I-REC).

Social Achievements

• Improved gender distribution in the company to 55/45 (men/women).
• Health-related absenteeism was 1.39 percent, well below the target of no higher than 3 percent.
• No work-related injuries or cases of discrimination were reported.
• Launched a whistleblower service for employees and external partners.
• All suppliers were audited and approved under the Mips’ supplier Code of Conduct.

Governance Achievements

• Implemented a whistleblower service.
• All suppliers signed the Supplier Code of Conduct.
• Continuous audits of factories in the supply chain to ensure compliance with the Code of Conduct.

Climate Goals & Targets

Environmental Challenges

• Plastic is the only material currently suitable for helmets, but it creates CO2 emissions and waste.
• Need to continue to succeed and grow as a company by attracting and retaining employees with varied backgrounds and different competences.
• Ensuring that factories, primarily located in China, share Mips’ core values regarding working environment, human rights, the environment, and corruption.
• Risk of human rights violations in the supply chain.
• Risk of corruption and bribery in geographic areas of operation.

Mitigation Strategies

• Signed up new suppliers that can supply polycarbonate (PC) in the form of wastage from other manufacturing.
• Actively working to promote diversity in the company.
• Continuous supplier audits.
• Code of Conduct for all suppliers.
• Zero-tolerance policy regarding bribery and corruption.
• Systematic work to counteract human rights violations through dialogue, requirements, and supplier reviews.

Supply Chain Management

Supplier Audits: 100% of suppliers audited annually

Responsible Procurement

• Supplier Code of Conduct based on UN Global Compact Principles, ILO standards, and OECD guidelines.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, UN Sustainable Development Goals, EU Taxonomy (simplified reporting)

Third-party Assurance: KPMG Ab - Limited Assurance

UN Sustainable Development Goals

• Goal 5.5
• Goal 7.2
• Goal 8.7
• Goal 8.8
• Goal 12.4
• Goal 12.5
• Goal 13.2

Mips’ KPIs are aligned with the UN’s sustainability goals.

Sustainable Products & Innovation

• More sustainable polycarbonates

Environmental Metrics

ESG Focus Areas

• Climate Change
• Circular Economy
• Supply Chain Sustainability
• Employee Well-being
• Helmet Safety

Environmental Achievements

• Reduced emissions per solution sold by an average of around 21 percent.
• Expanded Mips’ range of solutions made from recycled material; offering all customers a recycled polycarbonate alternative in the company’s most sold safety solution.

Social Achievements

• Carried out third-party audits at Mips’ three strategically most important suppliers in the supply chain.
• Achieved a 46/54 percent women/men distribution in the workplace.

Governance Achievements

• Continued to develop patents
• Complied with regulations and maintained proper business ethics

Climate Goals & Targets

Environmental Challenges

• Reduced sales within the bike sub-category due to challenging market conditions (high inventory levels, high inflation, high interest rates).
• Geopolitical uncertainty in the supply chain (primarily China).
• Risk of non-compliance with various regulations.
• Dependence on a few large customers.
• Attracting and retaining employees with the right skills.
• Product liability and legal risks.
• Currency fluctuations affecting earnings.

Mitigation Strategies

• Continued investments in research and development and marketing.
• Active dialogue with Chinese helmet manufacturers and efforts to establish a European supply chain.
• Continuous investment in employee professional development and clear policies/procedures.
• Actively working to nurture existing customer relationships and broaden the customer base.
• Collaboration with universities and active dialogue with testing bodies.
• Comprehensive agreements and insurance coverage.
• Hedging 50 percent of forecasted sales in USD (discontinued in 2024).

Supply Chain Management

Supplier Audits: 3 third-party audits in 2023, target 5 in 2024

Responsible Procurement

• Supplier Code of Conduct based on UN Global Compact principles.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions and natural disasters impacting access to materials and operations.

Transition Risks

• Changing rules and taxation.

Reporting Standards

Frameworks Used: GRI, SBTi, UN Global Compact

Certifications: ISO 14001 (some suppliers)

Third-party Assurance: KPMG AB (Limited Assurance for Sustainability Report)

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 8 (Decent work and economic growth)
• Goal 12 (Responsible consumption and production)
• Goal 13 (Climate action)

Initiatives contributing to these goals are detailed throughout the report.

Sustainable Products & Innovation

• Solutions using post-industrial recycled plastic.