Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainable products with high quality and performance
• Reduced climate impact
• Responsible purchasing
• Healthy, inclusive and engaging workplace
• Business ethics

Social Achievements

• Updated codes of conduct for employees, manufacturers, and partners
• Implemented Winningtemp to measure organizational health, achieving an average score of 8.1 in 2021
• Updated work environment policy

Governance Achievements

• Listed on Nasdaq First North Premier on February 11th, 2021
• Implemented a digital whistleblower tool

Climate Goals & Targets

Environmental Challenges

• Lack of graphics cards negatively affected demand for computer components
• Sharp price increases for sea freight
• Increased raw material costs
• Reintroduced tariffs on products imported into the USA from China
• Logistic disruptions in China led to significant delivery delays

Mitigation Strategies

• Raised prices to compensate for increased shipping and raw material costs
• Applied for tariff exemptions from the US Department of Commerce (exemption granted retroactively from October 12th, 2021, to December 31st, 2022)
• Aim to transfer part of the final assembly outside of China over time

Supply Chain Management

Responsible Procurement

• All suppliers must sign a code of conduct covering human rights, fair working conditions, health, safety and environment, dangerous substances and conflict minerals, and business ethics.
• Ongoing quality controls and sustainability audits are performed on site in Taiwan and China.

Climate-Related Risks & Opportunities

UN Sustainable Development Goals

• Goal 5 – Gender Equality
• Goal 8 – Decent Work and Economic Growth
• Goal 12 – Responsible Consumption and Production
• Goal 16 – Peace, Justice and Strong Institutions

Awards & Recognition

• Torrent series received several “Best Case of the Year” awards

Environmental Metrics

ESG Focus Areas

• Business ethics
• Development of sustainable products
• Health and safety at work
• Responsible purchasing
• Diversity and inclusion
• Reduction of CO₂ emissions
• Water use
• Waste management
• Circular economy
• Mental health for children, adolescents, and young adults

Environmental Achievements

• Launched the first computer case product with pulp tray packaging, reducing environmental impact by replacing Styrofoam with biodegradable pulp material and allowing for reduction in packaging size.

Social Achievements

• Launched a partnership to help prevent mental health problems among younger people.
• Achieved at least 90% customer satisfaction.

Governance Achievements

• Conducted a materiality analysis to identify stakeholders' most important sustainability concerns.
• Established a sustainable development strategy.
• Increased the number of supplier audits.

Climate Goals & Targets

Environmental Challenges

• Demand for sustainability from customers and other stakeholders is gradually increasing.
• EU and UN Sustainable Development Goals require improved sustainability performance in all parts of the value chain.
• Global companies operate in markets and societies with elevated risks of corruption and bribery.
• Scarcity of natural resources and assets can lead to new legislation that makes production more expensive and complex.

Mitigation Strategies

• Extensive product testing, quality controls, and other measures to ensure compliance with legal requirements and policies.
• Implementation and continuous updating of our Code of Conduct and supplier compliance with the Code of Conduct.
• Approval of suppliers and business partners and follow-up through sustainability audits.
• Training initiatives to ensure compliance with the Code of Conduct.
• Designing all Fractal products, which translates to good control over material selection, properties, and performance across the entire range.

Supply Chain Management

Supplier Audits: 8 audits in 2022, resulting in a sustainability compliance rate of 92%

Responsible Procurement

• Supplier Code of Conduct covering human rights, fair working conditions, health, safety, and environment, hazardous substances and conflict minerals, and business ethics.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Sustainable Development Goals

Third-party Assurance: KPMG AB

UN Sustainable Development Goals

• Goal 5 - Equality
• Goal 8 - Decent work and economic growth
• Goal 12 - Responsible consumption and production
• Goal 16 - Sustainable cities and communities

Fractal's operations and social and environmental footprint contribute to these goals through equal opportunities, safe working conditions, sustainable product design, and responsible business practices.

Sustainable Products & Innovation

• Computer case with pulp packaging

Environmental Metrics

ESG Focus Areas

• Business ethics
• Sustainable products
• Mental health in gaming
• Responsible procurement
• Reduced climate impact
• Circular economy

Environmental Achievements

• Launched Fractal Terra with plastic-minimized packaging using molded pulp and bamboo.
• Implemented sustainability parameters in supplier audits (93.28% compliance).

Social Achievements

• Launched a social impact initiative focusing on mental health in gaming, partnering with Suicide Zero and Rise Above the Disorder.
• Fractal Creator Program engaged over 200 streamers to promote the brand and mental health awareness.

Governance Achievements

• Initiated preparations for compliance with the EU Corporate Sustainability Reporting Directive (CSRD).

Climate Goals & Targets

Environmental Challenges

• Increasing customer and stakeholder demand for sustainability.
• Climate impact and stricter sustainability requirements.
• Risks of corruption and ethical breaches.
• Scarcity of natural resources.

Mitigation Strategies

• Extensive product testing and quality controls.
• Supplier Code of Conduct and audits.
• Training initiatives on business ethics and code of conduct.
• Careful material selection and design for product longevity and recyclability.

Supply Chain Management

Supplier Audits: 7 audits in 2023, 15 planned for 2024

Responsible Procurement

• Supplier Code of Conduct covering human rights, fair working conditions, health & safety, sustainable manufacturing, and business ethics.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Sustainable Development Goals

Third-party Assurance: KPMG AB

UN Sustainable Development Goals

• Goal 5 - Gender equality
• Goal 8 - Decent work and economic growth
• Goal 12 - Responsible consumption and production
• Goal 16 - Peace, justice and strong institutions

Fractal's commitment to equal opportunities, safe working conditions, sustainable products, and ethical business practices.

Sustainable Products & Innovation

• Fractal Terra with sustainable packaging

Awards & Recognition

• Red Dot Design Award 2023 (Fractal North)