Climate Change Data

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic slowed down growth and forced a focus on profitability and balance sheet protection.
• Staff turnover due to cost-saving measures slowed growth in early 2021.
• Increased competition for customers and experts.
• International operations still loss-making.
• Challenges integrating acquisitions (e.g., Bitsec acquisition in Sweden).

Mitigation Strategies

• Implemented cost-saving measures.
• Shifted to a new operating model in March 2021 to improve efficiency and customer experience.
• Focus on integrating acquisitions into uniform operating policies.
• Investing in scalable continuous managed services.
• Continued acquisition-driven value creation by buying smaller cybersecurity service companies.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Sustainable development
• Social responsibility
• Environmental responsibility
• Anti-corruption

Environmental Achievements

• Compensated for its 230,000 kg of CO2 emissions via the Taimiteko project

Social Achievements

• Employee satisfaction remained at a good level in 2022
• No accidents occurred at work during 2022
• Provides its personnel with varied and challenging tasks, opportunities to develop their skills among top professionals in the field, and an international work community.
• Collaborated with both cybersecurity communities and educational institutions, and also organized and supported cybersecurity-related events

Governance Achievements

• No violations of human rights legislation, regulations or principles were reported in 2022
• Nixu has zero tolerance for corruption, bribery and money laundering

Climate Goals & Targets

Environmental Challenges

• Fierce competition for skilled personnel continued and kept personnel turnover high
• General economic uncertainty, along with increasing interest rates and inflation may have an effect on the demand of Nixu’s services
• The war in Ukraine and its consequences is a material risk and uncertainty. Due to the war the risk of cyber threats has increased.
• Covid 19 has continued, and it may still change its characters, therefore Nixu Employees’ health and ability to work, and thus the continuity of operations and services, are the most significant Covid-19 specific risk for Nixu.
• The hybrid way of working may also have negative impact on the employee well-being and in addition the turnover of employees may increase because of frustration in relation to it.
• Operational risks involved in Nixu’s business activities, such as malfunctions in IT systems and equipment, or an interruption in their availability.
• A breach to Nixu’s systems and materialized cybersecurity threat may cause significant direct or indirect damage to company’s operations.
• Shortcomings in following the legislation may result in substantial direct and indirect adverse consequences to Nixu.
• Unexpected delays and extra work are typical for large projects, adding uncertainty factors which may cause Nixu to incur additional costs.
• Problems in providing continuous services, which may accrue additional costs to Nixu.
• Conflicts with clients which pertain to the contents of agreements.
• Acquired companies not meeting the set targets or failure to integrate the acquired companies may seriously disrupt Nixu’s operations.
• Information security attacks are aimed at our clients’ systems and potential problems in Nixu’s services may result in substantial direct and indirect adverse consequences to Nixu.
• Breaching financing agreements’ covenant conditions may have an effect to the company’s financial position.
• Losing any of the ten largest clients or losing a significant number of clients from the continuous services client base within a short period of time may also affect the company’s profitability.
• Non-successful co-operation with strategic technology partners may lead to increased costs or loss of said partnership.

Mitigation Strategies

• Nixu compensates for its emissions via the Taimiteko project
• Interest rate hedging of loans
• Monitoring the development of the situation and assessing its impact on financial reporting, including non-current assets and the valuation of trade receivables.
• Credit risk countering payment methods such as advance payments are used in high risk clients.
• Nixu monitors the Group’s liquidity needs monthly to ensure that sufficient cash is available to meet the needs of the business and, at the same time, to constantly maintain a sufficient number of undrawn committed credit facilities.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: IFRS

Certifications: ISO 27001

Third-party Assurance: PricewaterhouseCoopers Oy