Climate Change Data

Environmental Metrics

ESG Focus Areas

• Human Rights
• Labor
• Environment
• Anti-Corruption
• Supply Chain Sustainability
• Product Responsibility
• Employee Well-being
• Diversity & Equality
• Climate Change

Environmental Achievements

• Reduced air freight to 67% (from a higher percentage in previous years), achieving their 2020 target.
• Developed mobile phone cases made of recycled ocean plastic in collaboration with 4ocean.
• Reduced plastic use in packaging and transportation.

Social Achievements

• Donated 100,000 breathing masks to hospitals in several countries.
• 100% of suppliers in high-risk areas participated in STRAX’s supplier development program.
• 100% of employees in vendor-facing positions completed anti-bribery and corruption education.

Governance Achievements

• Established STRAX+, a team coordinating sustainability efforts.
• Implemented and maintained a Code of Conduct, Anti-Bribery Policy, and Supplier Code of Conduct.
• No deviations from the STRAX Code of Conduct were reported in 2020.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions and challenges related to the COVID-19 pandemic (work from home, isolation).
• Concentration of production in South East Asia leading to environmental challenges due to transportation.
• Maintaining sustainability performance across a global supply chain.
• Risks of corruption and bribery in South East Asia.

Mitigation Strategies

• Continuous work to maintain a good and safe working environment and ensure stable information provision during the pandemic.
• Implementation of the Responsible Business Alliance (RBA)’s Code of Conduct and STRAX’s Code of Conduct for Suppliers.
• Regular supplier audits and self-assessment system.
• Supplier development program.
• Anti-Bribery Policy, education for employees, and anti-bribery contracts with factories.

Supply Chain Management

Supplier Audits: 11 audits conducted in 2020

Responsible Procurement

• RBA’s Code of Conduct
• STRAX’s Code of Conduct for Suppliers
• Supplier self-assessment system
• Third-party validation of strategic suppliers’ CSR performance
• Supplier development program

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Global Compact

Certifications: ISO 9001

Sustainable Products & Innovation

• Mobile phone cases made from recycled ocean plastic

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Achieved a gold rating with Ecovadis.
• Urbanista launched the world's first self-charging wireless headphones.

Social Achievements

• Maintained stable and high service levels for vendors and customers throughout the pandemic.
• Established Group-wide HR guidelines.

Governance Achievements

• Implemented a share-based incentive program.
• Completed the acquisition of Brandvault.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions and increased input costs.
• Global smartphone shortage and drop in retail store footfall.
• Inventory write-offs and devaluation.
• Compressed margins due to overly aggressive e-commerce growth tactics.
• Covid-19 pandemic causing disruptions.

Mitigation Strategies

• Adjustments to product purchasing plans.
• Reduction of operating expenses.
• Expansion of credit facilities.
• Increased activities in online channels.
• Distribution of medical products.
• Working to limit the negative effects of the situation that has arisen (Russia-Ukraine conflict).

Supply Chain Management

Supplier Audits: 3 JAC audits conducted in 2021.

Responsible Procurement

• RBA’s Code of Conduct
• STRAX’s Code of Conduct for Suppliers
• Anti-Bribery Contract with factories

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Global Compact

Certifications: ISO 9001

Third-party Assurance: PricewaterhouseCoopers AB

Sustainable Products & Innovation

• Urbanista Los Angeles headphones (solar cell powered)
• Clear case for Nokia G11 and G21 (100% recycled materials)

Awards & Recognition

• Ecovadis Gold certification
• Red Dot Award (Dóttir headphones)
• CES Innovation awards 2022 (grell headphones)

Environmental Metrics

ESG Focus Areas

• Human Rights
• Labor
• Environment
• Anti-Corruption
• Product Development
• Procurement and Manufacturing
• Logistics
• Value-added solutions and services
• Decent work and economic growth
• Responsible consumption and production
• Climate action
• Customer satisfaction
• Diversity and equality
• Occupational health and safety
• Working conditions and human rights in the supply chain
• Product quality and safety
• Environmental impact and chemicals
• Anti-corruption
• Transport and energy use
• Climate impact caused by products and packaging

Environmental Achievements

• Awarded EcoVadis Gold rating for the second year in a row (score improved from 71 to 77)
• Launched several initiatives to increase the proportion of products made from recyclable or biodegradable plastics and reduce the use of plastic in shipping and product packaging
• 100% of all product packaging was recyclable in 2022 and 100% of all shipping packaging was recyclable in 2022.

Social Achievements

• 100% of all employees in vendor-facing positions completed education on bribery and corruption.
• 100% of all suppliers in high-risk areas participated in STRAX’s supplier development program.
• 100% of STRAX’s products complied with all local and international regulatory safety standards.
• 100% of all suppliers had completed a self-assessment ensuring responsible cobalt sourcing in line with RCI requirements.

Governance Achievements

• Sustainability is embedded in all operations and forms an integral part of corporate governance.
• Implemented policies and procedures to prevent and deter corrupt practices.
• Zero tolerance policy on corruption.

Climate Goals & Targets

Environmental Challenges

• Difficult market conditions, inflation, reduced consumer purchasing power.
• Challenges related to shipping due to the pandemic and Russia’s invasion of Ukraine (closedowns, canceled flights, closed ports, container shortages).
• Concentration of production in South East Asia resulting in environmental challenges due to transportation.
• Sustainability risks in the supply chain (corruption, human rights violations, unfair labor practices, environmental damage).

Mitigation Strategies

• Continuous improvements and adaptations within the organization.
• Clear supply of information throughout the organization.
• Optimization of transportation and reducing the proportion of air freight.
• Working with suppliers to optimize transport of goods.
• Using a customs warehouse in Asia for better coordination of transports.
• Prioritizing alternative technology solutions for business travel (video conferencing, virtual offices).
• Requiring suppliers to operate ethically and in accordance with international standards.
• CSR-based governance structure for supplier evaluation and follow-up.
• Robust procedures to detect and prevent non-compliant products from shipping to customers.
• Due diligence to ensure no conflict minerals or cobalt are used in products.

Supply Chain Management

Supplier Audits: Initial audits conducted at all new major strategic suppliers; regular visits and audits; third-party validation of strategic suppliers’ social responsibility performance.

Responsible Procurement

• STRAX Supplier Code of Conduct (based on RBA Code of Conduct), Anti-Bribery Contract with factories, self-assessment system for suppliers, supplier development program.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: UN Global Compact

Certifications: ISO 9001

Third-party Assurance: Samuel Bjälkemo and Andreas Brodström, Authorised Public Accountants

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Urbanista Phoenix in-ear headphones (powered by light)
• Xqisit AirPod Pro charging case (made of compostable PLA)

Awards & Recognition

• EcoVadis Gold Rating