Climate Change Data

Environmental Metrics

ESG Focus Areas

• Highly qualified team and education initiatives
• Diversity, non-discrimination and equal opportunities
• Working conditions and terms of employment
• Customer privacy
• Safety and good health
• Ecological impact, Eco initiatives, green office (water, CO2), eco weeks, climate change
• Business continuity (risks) and strategic risks
• Support of educational institutions and initiatives
• Corporate culture (ethics and integrity) — code of conduct, welcome book
• Charity and corporate volunteering
• Legal and taxation
• Social impact
• Anticorruption policies
• Human rights (we do not discriminate, zero tolerance to harassment and bullying, antislavery, no zero hours contracts)
• Supply chain (contracts, vendors)
• Operational efficiency, Revenue and profit margin

Environmental Achievements

• Launched Green Office Project aimed at reducing GHG emissions and water consumption, along with waste management development.
• Reduced CO2 emissions by 39% (market-based) and 33% (location-based) in 2020 compared to 2019.
• Reduced business air travel CO2 emissions by 79% in 2020 compared to 2019.

Social Achievements

• 90% of respondents are ready to recommend DataArt as a good employer to their friends (2019).
• 95% of respondents are ready to recommend DataArt as a good employer to their friends (2020).
• Annual attrition rate under 10% for over 20 years.
• 0 people fired during the Covid-19 pandemic.
• Organized 245 training events in 2020, with 85+ hours of training per employee on average.
• Launched online IT recruitment school for 20 women in Ukraine.
• Women occupy 31% of total employee count, increasing by 0.5% annually.

Governance Achievements

• Adoption of DataArt Sustainability Manifesto and Social and Environmental Policy.
• Disclosure of Scope 1, 2, 3 Greenhouse Gas Emissions in Carbon Disclosure Project (CDP).
• Implemented Personal Data Protection Policy.

Climate Goals & Targets

Environmental Challenges

• Potential for large energy consumption (equipment, air conditioning) leading to greenhouse gas emissions.
• Climate-related risks (flooding, fires, hurricanes) that could disrupt operations.
• Occupational health and safety risks (noise, repetitive motions, static posture).
• Community health, safety, and security risks (job displacement, social inequality).

Mitigation Strategies

• Business Continuity Policy and Business Continuity Plans.
• Disaster recovery strategies (system reconfiguration, backup availability, mirroring).
• Green Office initiative to reduce energy and water consumption and waste.
• Focus on open communication, encouragement, effort planning, and performance feedback to reduce stress.
• Mental health day option for employees.
• Improved corporate video conferencing services.
• Hybrid WFH/office model.

Supply Chain Management

Responsible Procurement

• Vendor Management Policy
• Buy locally principle where suitable

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Nature fires
• Hurricanes
• Extreme wind

Reporting Standards

Frameworks Used: GRI Standards: Core option

Third-party Assurance: No

UN Sustainable Development Goals

• SDG 5: Gender equality
• SDG 8: Decent work and economic growth
• SDG 3: Good health and wellbeing
• SDG 4: Quality education
• SDG 11: Sustainable cities and communities
• SDG 12: Responsible consumption and production
• SDG 13: Climate action

DataArt's commitment to the UN Sustainable Development Goals is underlined by its Environmental and Social Performance Program.

Awards & Recognition

• Most Innovative Global Software Engineering Company of 2020 (Corporate Vision Magazine)
• Highly commended nomination in brand innovation at European Brand Management Awards 2020
• According to Glassdoor 99% of employees would recommend working at DataArt to a friend and 100% approve of CEO (US)
• HR Brand Award 2020 in «Wellbeing project of the year» and «Nominees choice» categories (Ukraine)
• 7th place in Forbes Ukraine rating of all employers in Ukraine
• Top 5 IT employers in Ukraine (DOU.ua)
• Top 5 «Credibility of IT companies» ranking (PointeR Agency)
• 9th place in «TOP 50 IT companies» ranking 2020 (Developers.Org.Ua)
• TOP Software Companies in Bulgaria award (2020)
• Silver prize in the «Technologies in HR» category at the Career Show Awards 2020 (Bulgaria)
• 3rd place in Best IT Employer ranking 2019/2020 (ComputerWorld, Poland)
• 5th place in the «Top 20 IT Employer Brands in Russia» 2020 ranking (Habr.com)
• Best Employers 2020 shortlist (Apertura magazine, Argentina)

Environmental Metrics

ESG Focus Areas

• Climate Action
• Responsible Consumption and Production
• Decent Work and Economic Growth
• Gender Diversity
• Good Health and Well-being
• Quality Education
• Sustainable cities and communities

Environmental Achievements

• Implemented Green Office initiative in 5 offices
• Reduced electricity consumption by 5% compared to 2020 despite significant personnel increase.
• Conducted first climate-related risk and opportunity assessment in accordance with TCFD recommendations.

Social Achievements

• Launched a new grievance mechanism to address unethical behavior and corruption.
• Increased women's representation in project management roles to 35.2% and overall employee count to 31%
• Maintained 90% employee satisfaction with recommendation rate of 90% and 85% satisfaction with total reward.

Governance Achievements

• Established a Grievance Committee to handle complaints and ensure prompt response and resolution.
• Enhanced Grievance Management processes, including mechanisms for complaints, procedures, and deadlines.
• Implemented a new procurement and purchasing framework development initiative.

Climate Goals & Targets

Environmental Challenges

• War in Ukraine disrupting lives of employees and requiring significant relocation efforts.
• Unprecedented growth in operations and staff bringing new HR management challenges.
• Climate-related risks such as floods, extreme weather, and power outages.
• Occupational health and safety risks related to open-space offices and computer use.
• Community health, safety, and security risks related to political views of IT personnel.

Mitigation Strategies

• Committed over $4M to direct aid and established a US-based fundraiser.
• Undertook an unprecedented relocation operation for thousands of staff and their families.
• Strengthened psychological helpline with more mental health and conflict resolution specialists.
• Adopted Business Continuity Policy and Plans to mitigate climate-related risks.
• Implemented S&E requirements in processes and procedures to avoid or minimize negative impacts.
• Developed S&E initiatives to offset residual negative impacts.

Supply Chain Management

Responsible Procurement

• Vendor Management Policy
• Assessment and evaluation of vendors based on ethical, professional, and legal standards, environmental protection, human rights, labor and social standards, anti-discrimination, and anti-corruption policies.

Climate-Related Risks & Opportunities

Physical Risks

• Floods
• Sea level rise
• Coastal flooding
• Changes in precipitation patterns
• Freezing rain
• Hurricanes
• Tornados
• Wind storms
• Extreme hot weather
• Extreme cold weather
• Forest wildfires

Transition Risks

• Mass and rapid transition to renewable energy causing power blackouts
• High electricity costs
• Enhanced emissions-reporting obligations
• Inaccurate or fraudulent disclosure of emissions
• Decreased revenues due to reduced demand
• Carbon tax introduction

Opportunities

• Development and/or expansion of low emission goods and services
• Reducing traveling and use of more efficient modes of transport
• Work from home policy
• Reducing consumption of electricity and heat
• Reduced water usage and consumption
• Shift to green or lower-emission sources of energy
• Establishment of Sustainable Supply Chain Policy

Reporting Standards

Frameworks Used: GRI Standards: Core option, TCFD

Third-party Assurance: No

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 12 (Responsible consumption and production)
• Goal 13 (Climate action)

DataArt's commitment to sustainable office operations, green city personal transport, local travel policy, calculation and improvement of business trips' effect on climate change, and waste reduction practices.

Awards & Recognition

• Global Employer Brand Awards (Randstad, Great Place to Work, Comparably)
• Latam Best Employers ranking
• Bulgaria TOP 20 IT Managers ranking, Employer Branding Awards, The Greenest Companies ranking, Career Show Awards
• Poland Sila Przyciągania Awards, Employer Branding Excellence Awards, Top Tech Employer, Employer Branding Star
• Ukraine HotOrNot Brand Employer ranking, TOP 50 IT companies ranking, TOP 50 Best Employers ranking, TOP 100 IT Employers ranking, HR Brand Award
• Global (client market) Top Germany Custom Software Developers, 500 Leading B2B Providers, 250 Leading B2B Providers, Microsoft Partner Awards, Inc. 5000 ranking

Environmental Metrics

ESG Focus Areas

• Information security
• Business ethics and compliance
• Education activities
• Fair labor practices and working conditions
• Diversity, equity, and inclusion
• Environment and climate

Environmental Achievements

• Overall 2.5% reduction of Scope 1, 2, and 3 emissions to 1,537 metric tons of CO2e in 2023 (preliminary)
• 170,000 trees planted in Ukraine, 300 in Armenia, and 500 in Poland through DataArt Forest initiative

Social Achievements

• Launched upskilling/reskilling programs to upgrade employees' technical, soft, leadership, and communication skills
• Continued support for Ukraine through the “Support Ukraine” program, contributing 1.8 million USD
• Implemented several key DEIB initiatives, including the formation of a new DEIB group and three volunteer working groups
• Launched a DEIB essentials training course and published Inclusive Communications and Images Guidelines
• Artsakh Project: Launched a QA school program for women-forced migrants

Governance Achievements

• Enhanced internal cybersecurity capabilities, talent, and processes
• Implemented a Personal Data Protection Policy and annual awareness training program
• Appointed a Data Protection Officer (DPO) for the Germany office in December 2023
• Maintained high BitSight and Security ScoreCard ratings
• CEO committed to setting long-term science-based targets to reach net-zero value chain GHG emissions by 2050, in line with the SBTi Net-Zero Standard

Climate Goals & Targets

Environmental Challenges

• Economic challenges posed by the situation in Ukraine
• Preserving and attracting professionals in a competitive labor market
• Climate-related risks such as flooding, natural fires, hurricanes, and extreme wind

Mitigation Strategies

• Firm stance in supporting staff, preserving compensations and benefits
• Strategic advantage of sourcing candidates from internal pool
• Expansion into Mexico and India to access a broader talent pool
• Business Continuity Program with strategies for system reconfiguration, backup recovery, and mirroring
• Global Emergency Response Team (ERT) for supporting colleagues during crises

Supply Chain Management

Responsible Procurement

• Code of Sustainable Suppliers
• Systematized procurement of software licenses and subscriptions

Climate-Related Risks & Opportunities

Physical Risks

• Flooding, natural fires, hurricanes, extreme wind

Reporting Standards

Frameworks Used: GRI Standards, SBTi Net-Zero Standard, IFC Performance Standards on Environmental and Social Sustainability, UN Sustainable Development Goals (SDGs)

Certifications: SOC2 Type II

Awards & Recognition

• Financial Times List of the Americas’ Fastest-Growing Companies
• Newsweek’s List of the Top 100 Global Most Loved Workplaces
• Inc. 5000 List of America's Fastest-Growing Private Companies
• O'Reilly Awards (Gold in Engineering Excellence)
• Brandon Hall Group’s Excellence in Technology Awards (Bronze)
• Gartner recognition
• Everest Group’s PEAK Matrix® Assessment
• Gartner Magic Quadrant™
• EcoVadis Gold Medal
• Invest Cyprus — CIPA International Investment Award
• Comparably Awards (17 awards)
• Association for Talent Development Champion of Learning
• Employer Branding Awards, B2B Media
• Career Show Awards
• Employer of Tomorrow contest recognition
• Forbes Ukraine Best Employers ranking
• AIN.ua Top 20 IT companies ranking
• DOU employer brand ranking