Climate Change Data

Environmental Metrics

Social Achievements

• Silvair strengthened its North American team with the addition of Jim Sekinger, a sales executive with extensive experience in the lighting industry.

Climate Goals & Targets

Environmental Challenges

• Risk associated with the COVID-19 coronavirus pandemic: sales disruptions due to supply chain interruptions and postponed modernization investments by customers.
• Risk associated with strategic objectives and growth management: success of R&D and effective commercialization of products are not fully guaranteed.
• Risk associated with the early stage of the Company’s development, absence of meaningful history of operations and of significant revenue: pace of development depends on sales success and scale.
• Risk associated with product work and the uptake of the Company’s products by the market: products may require unforeseen modifications delaying commercialization.
• Risk associated with the dissemination of the Bluetooth mesh technology: Bluetooth mesh may not be a market success.
• Risk associated with loss of key members of the management and the team, and with difficulties in attracting employees and collaborators.
• Risk of product concentration: lack of diversified revenue sources.
• Risk associated with the work of development teams: unplanned discontinuation of cooperation by development teams.
• Risk of failure to attract qualified employees.
• Risk associated with significant increase in labor costs.
• Risk of growing costs of operations coupled with the absence of sufficient growth in revenues.
• Risk associated with research and development work on new products and technological solutions.
• Risk associated with development of competition.
• Risk associated with intellectual property protection.
• Risk associated with disclosure of company secrets and other confidential trade information.
• Risk of loss, demand of early repayment or return of various forms of state aid received by the Company.
• Risk associated with breakdowns or break-ins into IT systems.
• Risk associated with absence of insurance protection.
• Risk of damage to the Company’s image, claims arising from liability under warranties, guarantees and indemnity claims.
• Risk associated with court and administrative proceedings.
• Risk associated with absence of adequate internal control procedures and systems.
• Risk associated with the economic and political situation.
• Foreign exchange risk.
• Risk of legislative changes having an impact on the Company’s market.
• Risk associated with patent trolls.
• Risk associated with limited capital and future capital needs.
• Risk associated with lost liquidity.
• Risk associated with technological change in the industry and development of new products.
• Risk of unexpected trends.
• Risk associated with difficult enforcement of Directors’ and Officers’ liability towards the Company.

Mitigation Strategies

• Adequately reviewed sales assumptions for 2020 to delay the achievement of the profitability threshold.
• Reduced operating costs by reducing employment and changing remuneration conditions for key employees.
• Optimized the Group's operating costs to not disrupt product development and contract implementation.
• Implemented cost reduction measures to decrease costs by at least 40%.
• Considering a new issue of convertible securities and a new issue of the Company’s shares to address capital access difficulties.
• Retains the option to issue and apply for listing of approximately 1.4 million ordinary shares without the need to draw up a new issue prospectus.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: IFRS

Awards & Recognition

• LFI Innovation Award at LIGHTFAIR International

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• 30% reduction in energy consumption in Crystal Water warehouse, production, and office spaces through Silvair technology implementation. Annual savings estimated at USD 110,000 (USD 45 per lighting point).
• Annual savings of almost USD 5,000 achieved in Pioneer Groceries grocery chain through lighting modernization with Silvair technology.

Social Achievements

• Introduction of an Option Plan to retain key employees during the COVID-19 pandemic, increasing the number of shares under the plan from 1,453,000 to 2,000,000 and granting options for 523,312 shares.
• Silvair received an award for its contribution to the development of Bluetooth technology.

Governance Achievements

• Appointment of Christopher Morawski as a non-executive director and member of the Audit Committee.
• Selection of Grant Thornton Polska as the auditing company.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic causing sales disruptions due to supply chain interruptions and customer investment postponements.
• Difficulties in accessing capital.
• Patent disputes (with JSDQ and F2VS).

Mitigation Strategies

• Revised 2020 sales assumptions.
• Decreased operating expenses by 33% from March to June 2020 through headcount reduction and changes in employee compensation.
• Secured USD 2.1 million in funding through the issue of convertible bonds.
• Concluded license agreements to resolve patent disputes.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: IFRS

Certifications: Null

Third-party Assurance: Grant Thornton Polska

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Silvair Lighting Firmware
• Silvair Commissioning

Awards & Recognition

• Bluetooth SIG award