PRODUCTS & SERVICES ABOUT BITTIUM INVESTORS Blog Events Jobs Contact Us FI Reporting Basics and Principles Scope of Reporting This sustainability report, as a part of the annual report, is the third extensive report on the management and implementation of sustainability at Bittium. In 2020, Bittium has implemented actions on topics related to sustainability according to the sustainability program and developed its sustainability metrics, providing more information on the impacts. The sustainability program is based on the materiality analysis conducted in 2019, which aimed at gaining an understanding of stakeholders´ views on previously selected sustainability focus areas. With the materiality analysis, the company updated its responsibility focus areas and created a responsibility program for the years 2020–2022. In order to enable comparability, Bittium´s sustainability report is based on the Global Reporting Initiative (GRI) Standards framework. The table at the end of the report contains references to the relevant elements of the GRI Standards framework. The report covers all four sustainability focus areas and a description of Bittium´s financial effectiveness. The financial data is collected from Bittium´s financial information systems, and the majority of personnel data is from HR management systems. The reported financial figures are based on Bittium´s audited financial statements from 2019 and 2020. Bittium selected its reporting model on the basis of Bittium´s sustainability principles, taking into account the GRI framework and the focus areas of the Company´s business: wireless, secure communications in B2B operations. Bittium has customers both in Finland and in other countries. However, the majority of operations and most of the personnel are located in Finland. This report will be published in electronic form in connection with the Group´s annual report at www.bittium.com and https://annualreport.bittium.com. Scope of the Report The period covered by the sustainability report is the same as the financial period, January 1–December 31, 2020. Environmental data is not reported from offices where the Company only uses a part of the office premises. The report does not cover all suppliers or service providers. In other respects, the report covers all the operations of Bittium Corporation and its subsidiaries. Reporting Principles and Instructions Financial reports are governed by the International Financial Reporting Standards (IFRS), and governance reports comply with the legislation on listed companies and the Finnish Corporate Governance Code that applies to listed companies. The reported financial data is based on audited financial statements. Principles and Practices for External Verification The 2020 sustainability report follows the core level of the GRI Standards´ guidelines. The sustainability report has not been verified by an independent third party. The figures presented in the ´Financial effectiveness´ section are based on the Group´s audited financial statements. Sustainability Contact at Bittium: Karoliina Malmi, Vice President, Communications and Marketing karoliina.malmi@bittium.com GRI index Page numbers in the chart refer to downloadable print version of the Bittium Annual Report 2020 GRI 102 General Disclosures G4 Title Location Additional info/comments Organization 102-1 Name of the organization Bittium in Brief page 8 102-2 Industries, brands, products, and services Bittium in Brief; Bittium Products and Services page 8 page 12 102-3 Location of headquarters Bittium in Brief page 8 102-4 Location of operations Bittium in Brief page 8 102-5 Ownership and legal form Corporate Governance page 30 102-6 Markets served Bittium in Brief page 8 102-7 Scale of the organization Bittium 2020 page 4 102-8 Information on employees and other workers Innovative and Developing People page 62 102-9 Supply chain Suppliers and Partners; Sustainable Purchasing page 55 page 71 102-10 Significant changes to the organization and its supply chain Significant Events during the Reporting Period Organization; No significant changes; page 86-87. Supply chain; New partners in 2020: Tutus Data AB in Sweden and Verve Tuotteet and Palvelut in Finland; page 91 102-11 Precautionary Principle or approach Corporate Citizenship and Sustainable Business Practices; Corporate Governance page 72 pages 30-31 102-12 External initiatives None 102-13 Membership of associations Technology Industries of Finland Strategy 102-14 Statement from CEO CEO´s Review pages 6-7 102-15 Key impacts, risks, and opportunities Business and Operating Environment; Main features of Internal Control and Risk Management Processes related to Financial Reporting Processes; Report by the Board of Directors page 8 page 41 page 86 Ethics and Integrity 102-16 Values, principles, standards, and norms of behavior Corporate Citizenship and Sustainable Business Practices; Value Creation Model page 72 page 52 102-17 Mechanisms for advice and concerns about ethics Corporate Citizenship and Sustainable Business Practices page 52 Governance 102-18 Governance structure Corporate Governance page 30 102-19 Delegating authority Corporate Governance; Sustainability Management page 30 page 54 102-20 Executive-level responsibility on economic, environmental and social topics Sustainability Management; Stakeholder Organization and Risk Management page 54 102-21 Consulting stakeholders on economic, environmental, and social topics Stakeholder Cooperation; Corporate Citizenship and Sustainable Business Practices page 55 page 72 102-22 Composition of the Board Corporate Governance page 30 102-23 Chairman of the Board Corporate Governance page 30 102-24 Election of the Board Corporate Governance page 30 102-31 Review of economic, environmental and social topics Sustainability Management page 54 102-32 Highest governance body´s role in sustainability reporting Sustainability Management page 54 102-35 Remuneration policies Corporate Governance; Remuneration page 30 www.bittium.com/investors/corporate-governance/salary-and-remuneration-report Stakeholder Engagement 102-40 List of stakeholder groups Stakeholder Cooperation page 55 102-42 Identifying and selecting stakeholders Stakeholder Cooperation page 55 102-43 Approach to stakeholder engagement Stakeholder Cooperation page 55 102-44 Key topics and concerns raised Stakeholder Cooperation Materiality analysis online: www.bittium.com/about-bittium/sustainability page 55 Reporting Principles 102-45 Entities included in the consolidated financial statements Notes to the Consolidated Financial Statements note 32. Related Party Disclosures page 139 102-46 Defining report content and topic Boundaries Sustainability at Bittium in 2020 Scope of reporting page 44 page 80 102-47 List of material topics Sustainability at Bittium Focus Areas in Sustainability page 58 page 60 102-48 Restatements of information GRI Standard Content Index Page 81 For GRI 403, the GRI Index has been updated in accordance with GRI Standards 2020. 102-49 Changes in reporting GRI Standard Content Index page 81 102-50 Reporting period Reporting Basics and Principles page 81 102-51 Date of most recent report GRI Standard Content Index March 11, 2020 102-52 Reporting cycle Reporting The report is published annually 102-53 Contact point for questions regarding the report Reporting Karoliina Malmi, Vice President, Communications and Marketing karoliina.malmi@bittium.com Page 81 102-54 Claims of reporting in accordance with the GRI Standards Reporting Basics and Principles page 80 102-55 GRI content index GRI Standard Content index page 81 102-56 External assurance Reporting Basics and Principles page 80 GRI 103 Management Approachs 103-1 Entities included in the consolidated financial statements Entities included in the Consolidated Financial Statements Calculation boundary: Bittium Corporation 103-2 The management approach and its components Sustainability Management; Focus Areas of Sustainability page 44 page 51 103-3 Evaluation of the management approach Sustainability Management Management Review page 44 TOPICAL CONTENT Financial impacts 201 Economic performance 201-1 Direct economic value generated and distributed Financial influence page 48-49 202-4 Financial assistance received from government Notes to the Consolidated Financial Statements note 4: Other Operating Income page 103 205 Anticorruption 205-3 Confirmed incidents of corruption and actions taken Corporate Citizenship and Sustainable Business Practices No violations page 64 Environmental Impacts 301 Materials 301-1 Materials used by weight or volume Environmental Responsibility Use of paper, carton and metals page 65 302 Energy 302-1 Energy consumption within the organization Environmental Responsibility page 70 302-4 Reduction of energy consumption Environmental Responsibility page 70 303 Water 303-1 Water withdrawal by source Environmental Responsibility Total consumption and water usage / person page 70 305 Emissions 305-1 Direct (Scope 1) GHG emissions Environmental Responsibility Reported carbon footprint page 70 306 Effluents and Waste 306-2 Waste by type and disposal method Environmental Responsibility page 70 307 Non-compliance with environmental laws and regulations 307-1 Environmental compliance Environmental Responsibility Database of applicable environmental laws and regulations page 70 Social impacts 403 Occupational Health and Safety 403-2 Types of injury and rates of injury, occupational diseases, lost days and absenteeism, and number of work- related fatalities Innovative and Developing People Reported: Number of occupational incidents page 57 404 Training and education 404-1 Average hours of training per year per employee Innovative and Developing People Average hours of training per year per employee page 57 404-2 Programs for upgrading employee skills and transition assistance programs Innovative and Developing People page 56 405 Diversity and Equal Opportunity 405-1 Diversity of governance bodies and employees Diversity Principles of the Board of Directors Innovative and Developing People page 28 page 58 419 Socioeconomic Compliance 419-1 Non-compliance with laws and regulations in the social and economic area GRI Standards Content Index No violations • Anticorruption, p. 64 • Conflicting minerals, p. 63 • Counterfeit materials, p. 63 Connectivity to be trusted. 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