Climate Change Data

Environmental Metrics

ESG Focus Areas

• Corporate Social Responsibility
• Environmental Issues
• Employee Matters
• Diversity and Equality
• Social, Community and Human Rights Issues

Environmental Achievements

• The Group’s current business activities (an innovative technology platform for inventory monetisation) do not cause more than a negligible amount of emissions. One of the perceived side-effects of its activities is to shorten its Clients’ supply chains, which should in principle reduce transportation within the supply chain equation and bring a positive effect to the environment.

Social Achievements

• The Group’s policy is to attract staff and motivate employees by offering competitive terms of employment. The Group provides equal opportunities to all employees and prospective employees including those who are disabled and operates in compliance with all relevant national legislation.
• The Group seeks to achieve the highest ethical standards and behaviours in conducting its business, with integrity, openness, diversity and inclusiveness being high priority from the Board to senior management and throughout the workforce. We have adopted a formal equal opportunities policy which is contained in our employee handbook.

Governance Achievements

• The Board is committed to keeping this under review as the Group’s business model establishes itself. Any change in such assessment will be presented to the Directors for consideration as appropriate.
• The Board recognises the importance of diversity, both in its membership, and in the Group’s employees. It has a clear policy to promote diversity across the business.

Climate Goals & Targets

Environmental Challenges

• Funding Risk: The Company is not currently sustainably profitable. There is a risk that it may require more funding but not be able to find agreement with a funding partner.
• Employee Risk: Failure to retain key executives could adversely affect the Group's operating and financial performance.
• Strategic risk (competition): The Directors are unaware of other entities offering a similar Platform, but are aware that future competitors could offer superior scale and put pressure on prices which could affect the Group’s forecast revenues and profit margins.
• Global Economic risk: The Company’s business is substantially becoming global. Accordingly, the Company is exposed to the general economic impacts of COVID-19.

Mitigation Strategies

• The Directors have sought to mitigate funding risk by identifying a number of options for funding, including both equity and debt and, as stated recently, the TradeFlow’ acquisition.
• Retaining and motivating key executives is a critical component of the future success of the business. The Group is actively recruiting further key personnel in other geographies to make it more robust.
• The Directors recognise the risk and are working to analysis the outlook of each market which the Platform is operating.
• A corporate funding organisation has made sufficient funds available to stimulate the growth of the Group and accommodate any delays in revenue generation.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: FRS 102 (UK GAAP), IFRS

Third-party Assurance: Crowe UK LLP

Environmental Metrics

ESG Focus Areas

• Employee Matters
• Diversity and equality
• Social, community and human rights issues
• Environmental Issues
• Corporate Responsibility

Environmental Achievements

• TradeFlow advised funds were one of the first trade funds in the world to start buying carbon credits, with the aim of netting off carbon emissions from transportation related to the funds TradeFlow advises.

Social Achievements

• Hired a Chief People Officer, Alice Buxton, to lead on employee related matters. Work has started on building a centralised people function for the Group, continuing to cultivate a focused, high performing work force and planning and growing our long-term people capability to enable successful business growth.
• Adopted a formal equal opportunities policy which is available to all employees.

Governance Achievements

• Enhanced its team during 2021 with the following appointments into key leadership roles: Chief Financial Officer, Chief People Officer, Group Head of Origination, Group Head of Operations and Transformation.
• Updated and continued to evolve the legal and accounting frameworks underpinning each Inventory Monetisation Transaction with reference to the following jurisdictions: Italy, UK and UAE.

Climate Goals & Targets

Environmental Challenges

• Business confidence in 2021 stymied progress in some areas due to the impact of COVID-19 on business priorities for partners and lockdowns affecting decision-making speed.
• Supply chain disruptions due to COVID-19, driver shortages, flight and shipping disruptions, parts shortages, and worker illness.
• The innovative nature of the business model and robust due diligence procedures with banks requiring significant time to complete.

Mitigation Strategies

• Adopted a ‘test and learn’ approach and incorporated feedback into the platform.
• Readying the business to help existing and potential client companies adapt to the new world order, underpinned by the innovative inventory monetisation platform.
• Focusing on accuracy rather than speed in inaugural transactions to align client company inventories with the investment appetites of prospective inventory funders.

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: QCA Code

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• TradeFlow was a finalist in the EuroCham Sustainability Awards 2021

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Continued to be a low energy user, using less than 40 MWh per annum.

Social Achievements

• External review of Data Protection Governance to embed privacy by design principles.

Governance Achievements

• Complied with the QCA Corporate Governance Code.
• Implemented a Long-Term Incentive Plan.

Climate Goals & Targets

Environmental Challenges

• Strategic competition from larger key entrants to related markets.
• Risk that demand from corporate clients for Inventory Monetisation transactions cannot be met by debt funding providers.
• Unproven ability to scale the business model.
• Loss of key board and leadership team members.
• Group funding risk due to early stage of development and lack of consistent revenue.
• Global economic risks related to supply chain disruptions and inflation.
• Operational risks related to business continuity and regulatory compliance.
• Data protection risks operating in multiple jurisdictions.
• Intellectual property risk from cybersecurity breaches.

Mitigation Strategies

• Regularly monitors new market entrants and adapts to changing market conditions.
• Develops long-term relationships with a portfolio of investors and diversifies funding sources.
• Continuously enhances the platform and product roadmap.
• Employee experience and engagement survey and Long-Term Incentive Plan to retain talent.
• Engages with key stakeholders regarding funding strategies and secures new funding facilities.
• Utilizes its nimbler organizational structure to adapt to changing market conditions.
• Regularly reviews and tests business continuity plans.
• Engages with data protection experts and establishes appropriate protections.
• Regularly reviews cybersecurity provisions and implements staff training.

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: QCA Corporate Governance Code

Certifications: Null

Third-party Assurance: Crowe UK LLP

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Inventory Monetisation Platform

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Continued to keep energy consumption as low as possible, using less than 40 MWh per annum.

Social Achievements

• Launched its second employee experience and engagement survey.
• First internal promotions recognising individuals’ growth with the Company were awarded during 2023.

Governance Achievements

• Completion of the TradeFlow Restructuring on 30 June 2023.
• Appointment of Alexandra Galligan as Board Diversity Champion.

Climate Goals & Targets

Environmental Challenges

• Cash flow pressures during the second half of 2023 due to delayed contractual funding amounts.
• Challenges attracting and retaining female talent.

Mitigation Strategies

• Exploring alternative funding options to reduce reliance on TAG.
• Developing internal career growth opportunities and focusing on reward and recognition.

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: TCFD

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Inventory Monetisation Platform

Awards & Recognition

• Not disclosed