Reporting Basics and Principles
Scope of Reporting
This sustainability report published as part of the annual report is the sixth extensive report on the management and implementation of sustainability at Bittium. Bittium updated its sustainability program in 2022. In accordance with the updated program, Bittium has implemented sustainability-related themes by developing metrics and providing more extensive information on the impacts of its operations. The sustainability program is an updated version of the 2020–2022 sustainability program, which was based on a materiality analysis carried out in 2019. The aim of the materiality analysis was to establish an understanding of the stakeholders´ views regarding Bittium´s previously selected focus areas in sustainability. The focus area objectives and metrics of the sustainability program were updated to strengthen the company´s objectives related to being a responsible corporate citizen in society.
To enable comparison, 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 Bittium´s four sustainability focus areas and a description of financial effectiveness. The financial data is collected from Bittium´s financial information systems, and the majority of personnel data is from HR management systems. Environmental figures are collected from the company´s own systems and from reports provided by service providers, such as the company´s travel agency and waste management provider. The reported financial figures are based on Bittium´s audited financial statements from 2022 and 2023.
The reporting model was selected on the basis of Bittium´s sustainability principles, taking into account the GRI framework and the focus areas of Bittium´s business: wireless, secure communications in B2B operations. Bittium has customers both in Finland and in other countries. The operations and most of the personnel are nevertheless 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, 2023.
The company reports the consumption of electricity, heat and water for all of its owned premises as well as those offices in Finland where the company is on rent and the company only uses a part of the premises in the office building. In addition, the company separately reports environmental responsibility metrics (waste, water, electricity, heating) from the Oulu location. To calculate the carbon footprint, the company uses, in addition to all of the above-mentioned information, emissions from travel, which the company calculates from its own systems, as well as from emission reports obtained through the travel agency.
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 GRI Standards were applied in the preparation of the 2023 report. 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.
In 2023, Bittium began preparing for reporting in compliance with the EU Corporate Sustainability Reporting Directive, and these preparations will continue in 2024. The company will conduct a double materiality analysis and update its sustainability program in accordance with the results of the analysis.
Bittium´s Sustainability Contact Person:
Karoliina Malmi,
Vice President, Communications and Sustainability
[email protected]
GRI Content Index
Bittium´s Annual Report 2023 has been prepared with reference to the GRI Universal Standards 2021. The sustainability reporting covers the selected General Disclosures as well as the Topic Standards Bittium has deemed material and which reflects best its economic, social, and environmental impacts in the topics. The GRI 1: Foundation 2021 Standard´s key concepts for defining report content have been taken into account in the preparation of sustainability information. The topic standards are the year 2016 versions unless otherwise stated next to the standard number.
Statement of use: Bittium Oyj has reported the information cited in this GRI content index for the period January 1, 2023 to December 31, 2023.
GRI used: GRI 1: Foundation 2021
| Disclosure | Reporting contents | Location in Bittium´s annual reporting | Additional information |
|---|---|---|---|
| GRI 2: General Disclosures | |||
| 2-1 | Organizational details | Business and Operating Environment, p. 10 | Bittium is an international technology company that offers socially useful technical innovations that improve communication connections, create security and promote healthcare. The company´s offices are located in Finland, Germany,and in the USA. More information about the offices is on the website: www.bittium.com/about- bittium/facts-figures/bittium-locations Bittium Corporation´s articles of association are available on the website: www.bittium.com/investors/corporate- governance/articles-of-association |
| 2-2 | Entities included in the organization´s sustainability | Sustainability at Bittium in 2023; Reporting, p. 88 | |
| 2-3 | Reporting period, frequency and contact point | Sustainability at Bittium in 2023; Reporting, p. 88 | |
| 2-4 | Restatements ofinformation | Sustainability at Bittium in 2023; Reporting, p. 88 | There are no restatements of sustainability information in this report. |
| 2-5 | External assurance | Sustainability at Bittium in 2023; Reporting, p. 88 | |
| 2-6 | Activities, value chain and other business relationships | Business and Operating Environment, Products and Services p. 14; Sustainability at Bittium in 2023; Bittium´s value creation model p. 56, Sustainable Purchasing p. 78 | ll of Bittium´s products are manufactured in Finland by manufacturing partners. The products consist of various electronic and mechanical components, whose suppliers are both foreign and Finnish significant players in their respective regions. Bittium´s most significant partners in the distribution network are Bittium´s partners operating in different product and service areas, such as Tutus Data AB in Sweden for Bittium Tough Mobile™ 2 smartphones in Sweden and Technomed Ltd for Bittium Faros™ devices in the United Kingdom. |
| 2-7 | Employees | Sustainability at Bittium in 2023; Innovative and Developing People, p. 66–71 | The total number of employees at the end of 2023 was 526, of which 74 (14%) were female and 452 (86%) were male. There were 513 employees in permanent employment, of which 74 (14%) were female and 439 (86%) were male. The proportion of fixed-term employment contracts was 0.2% for women and 2% for men. The proportion of part-time employment contracts was 4% for both women and men. The proportion of full-time employment contracts was 96% for both women and men. 2% of employees worked on zero-hour contracts (2% female, 3% male). There was a decrease of 99 persons in the number of employees during 2023, of which 61 were dismissed as a result of the change negotiations. |
| 2-9 | Governance structure and composition | Corporate Governance, Corporate Governance, Bittium Corporation, Board of Directors, Board Committees p. 39; | |
| 2-10 | Nomination and selection of the highest governance body | Corporate Governance, Principles Concerning Board Diversity, p. 36 | The Annual General Meeting is the company´s the highest decision-making body, where the company´s shareholders participate in the control and management of the company by using their right to speak and vote. The most important tasks of the General Meeting include electing the Board members. The Board chooses a Chairman among its members. |
| 2-11 | Chair of the highest governance body | Corporate Governance, Corporate Governance, Bittium Corporation, Board of Directors, p. 35 | The Chairman of the Board of Directors of the Bittium Corporation is independent of both the Company and its significant shareholders. |
| 2-12 | Role of the highest governance body in overseeing the management of impacts | Sustainability at Bittium in 2023; Sustainability Management, p. 58, Corporate Governance, Annual Clock 2022, p. 37 | Bittium has a separate sustainability working group that develops, monitors, and evaluates issues related to sustainability. The working group is responsible for sustainability risk management and steering, as well as the company´s sustainability reporting. The Audit Committee of Bittium Corporation´s Board of Directors deals with sustainability issues regularly and when necessary. Bittium Corporation´s Board of Directors deals with sustainability issues based on the presentations of the management team and examines sustainability effects as part of its supervisory role. The sustainability report describes the methods that ensure sufficient care applied to the areas of sustainability. In addition, the description of risk management and processes related to the company´s operation and operating environment is defined as part of the Corporate Governance system report. |
| 2-14 | Role of the highest governance body in sustainability reporting | Sustainability at Bittium in 2023, Sustainability Management, p. 58 | |
| 2-15 | Conflicts of interest | The Board of Directors of Bittium Corporation and the relevant committee carefully evaluate the possible conflicts of interest of each member of the board and/or the relevant committee in the preparation and decision-making work. In a possible conflict of interest situation, the relevant institution ensures that the members in question do not participate in the preparation or decision-making. | |
| 2-19 | Remuneration policies | Bittium Corporation´s Remuneration Report, Remuneration Report from the accounting period of 2023 | Bittium Corporation´s remuneration policy and remuneration reports are available on the company´s website: www.bittium.com/investors/corporate-governance/remuneration |
| 2-20 | Process to determine remuneration | Bittium Corporation´s Remuneration Report | The Annual General Meeting decides on the remuneration of the members of the Board of Directors. Remuneration of the Board of Directors, the CEO, and any deputy CEO must be in accordance with the Company´s latest remuneration policy. Shareholders discuss the Remuneration Policy at the Annual General Meeting at least every four years and whenever substantial changes are made to it. In a possible conflict of interest situation, the relevant institution ensures that the members in question do not participate in the preparation or decision-making. The same principles are followed in the assessment of possible conflicts of interest as are followed when assessing board members´ conflicts of interest in connection with decision-making. The Board of Directors annually evaluates the possible need for changes to the Remuneration Policy. The company may use external experts when evaluating and determining the compensation to be paid to the Board of Directors and the CEO. Bittium Corporation´s remuneration policy and remuneration reports are available on the company´s website: www.bittium.com/investors/corporate-governance/remuneration |
| 2-22 | Statement on sustainable development strategy | Sustainability at Bittium in 2023, The CEO´s Statement on Sustainability, p. 53 | |
| 2-23 | Policy commitments | Corporate Governance, Main Features of Internal Control and Risk Management Processes Related to the Financial Reporting Processes, p. 45; Sustainability at Bittium in 2023, Corporate Citizenship and Sustainable Business, p. 76, Sustainability at Bittium, p. 61, Bittium´s Ethical Principles and Code of Conduct, p. 59 | Bittium follows a responsible business practices and requires it from its suppliers as well. Bittium´s ethical principles include aspects of anti-corruption, data protection and security, fair business practices, advertising and competition, corporate citizenship, and protection of intellectual property rights. Collaborators must comply with Bittium´s Code of Conduct principles and supplier guidelines and requirements (Bittium Supplier Requirements). The guidelines contain the most important policies, operating methods, and requirements for Bittium´s supply chain. The set requirements are related to business practices, anti-corruption, environmental issues, occupational safety, and human rights, including material-specific requirements. The guidelines and principles mentioned above are available on the company´s website: www.bittium.com Bittium has also mirrored the themes of the priority areas of sustainability in the UN´s Sustainable Development Goals and identified goals that are already taken into account and whose realization is promoted in the company´s operations. |
| 2-24 | Embedding policy commitments | Corporate Governance, Main Features of Internal Control and Risk Management Processes Related to the Financial Reporting Processes p. 45; Sustainability at Bittium in 2023, Corporate Citizenship and Sustainable Business, p. 76, Sustainability at Bittium, p. 61, Bittium´s Ethical Principles and Code of Conduct, p. 59 | Bittium takes into account the due diligence obligation in its operations. Together with its supply chain partners and other stakeholders, Bittium strives to identify both actual and potential harm to the environment and people, including human rights, in the entire value chain. As part of responsible management and operations, the company prevents and mitigates harm, monitoring the effectiveness of actions related to the duty of care. Bittium´s external and internal stakeholders also use the Whistleblowing notification procedure, which aims to reduce the risks that may be faced by the company. |
| 2-26 | Mechanisms for seeking advice and raising concerns | Sustainability at Bittium in 2023, Corporate Citizenship and Sustainable Business, p. 76 | Good governance and ethical operating methods are the basis of Bittium´s operations and a prerequisite for business. The trust of customers and other stakeholders in Bittium, product quality, and responsible development are of primary importance to the company. The company has compliance processes at every organizational level to ensure that applicable laws, regulations, internal guidelines, responsible business requirements, and ethical values are followed. Bittium´s personnel and external stakeholders use feedback and reporting channels as well as a reporting channel for detecting abuses. Personnel has been instructed on their use of Bittium´s intranet and in orientation training. |
| 2-27 | Compliance with laws and regulations | Report by the Board of Directors; Statement of Non-Financial Information | Bittium Corporation has not incurred legal sanctions for its activities during 2023. |
| 2-28 | Membership associations | Teknologiateollisuus ry | |
| 2-29 | Approach to stakeholder engagement | Sustainability at Bittium in 2023, Sustainability Management, p. 58 | |
| GRI 3: Material topics | |||
| 3-1 | Process to determine material topics | Bittium´s sustainability program is based on a materiality analysis carried out in 2019, on the basis of which the focus areas of sustainability have been defined. The program is built on the development goals and measures of focus areas and the metrics defined for them. The process of defining Bittium´s material topics, the materiality analysis, is described on the company´s website: https://annualreport.bittium.com/wp-content/uploads/2024/03/bittium_annualreport_2019.pdf With the update of the sustainability program, the goals and metrics of the focus areas were specified, and yearly sub-goals were set for the themes. The goals and metrics of the sustainability program for the years 2022–2025 are described in the context of the sections dealing with each focus area of the annual report. | |
| 3-2 | List of material topics | Sustainability at Bittium in 2023, Innovative and Developing People, p. 66, Trust-based Customer Relationships and Secure Products, p. 72, Corporate Citizenship and Sustainable Business Practices, p. 76 Environment, p. 82 | |
| 3-3 | Management of material topics | Sustainability at Bittium in 2023, Outputs and effects, p. 57, Innovative and Developing People, p. 66, Trust-based Customer Relationships and Secure Products, p. 72, Corporate Citizenship and Sustainable Business Practices, p. 76 Environment, p. 82 | The most significant sustainability effects of Bittium´s essential sustainability topics, the management of essential sustainability topics, and the measures related to their management are described in the annual report, in the sections dealing with Bittium´s sustainability priority areas. In the future, Bittium will develop reporting related to the management of material topics in accordance with the GRI 3: Material topics standard. |
| GRI 201: Economic Performance | |||
|---|---|---|---|
| 201-1 | Direct economic value generated and distributed | Sustainability at Bittium in 2023, Economic Impact, p. 61 | |
| 202-4 | Financial assistance received from government | Notes to the Consolidated Financial Statements, 3. Other profits of the business | page 117 |
| GRI 205: Anti-corruption | |||
| 205-2 | Communication and training about anti-corruption policies and procedures | Sustainability at Bittium in 2023, Corporate Citizenship and Sustainable Business, p. 76 | Bittium requires its personnel and partners to commit to the company´s anti-corruption guidelines. Mandatory training on anti-corruption activities is organized for personnel as part of the induction program, and in 2023, 77 percent of new employees completed the electronic self-study module included in the training by the end of 2023. |
| 205-3 | Confirmed incidents of corruption and actions taken | Sustainability at Bittium in 2023, Corporate Citizenship and Sustainable Business, p. 6 | Bittium´s personnel and external stakeholders use feedback and reporting channels as well as a reporting channel for detecting abuses. During 2023, Bittium Corporation did not report any corruption suspicions or cases. |
| GRI 301: Materials | |||
|---|---|---|---|
| 301-1 | Materials used by weight or volume | Sustainability at Bittium in 2023, Environment, p. 82 | Bittium does not use paper, cardboard or metal in the production of its products. Bittium reports the amount of material waste and recycling resulting from the use of materials at the locations. |
| GRI 302: Energy | |||
| 302-1 | Energy consumption within the organization | Sustainability at Bittium in 2023, Environment, p. 84 | |
| 302-4 | Reduction of energy consumption | Sustainability at Bittium in 2023; Environment, p. 84 | |
| GRI 303: Water and Effluents (2018) | |||
| 303-1 | Interactions with water as a shared resource | Sustainability at Bittium in 2023; Environment, p. 84 | Reported total water consumption and water consumption per person for Bittium locations. No water is used in the production of the products. |
| GRI 305: Emissions | |||
| 305-1 | Direct (Scope 1) GHG emissions | Sustainability at Bittium in 2023; Environment, p. 84 Report by the Board of Directors 2023, Statement of Non-Financial Information, p. 110 | Reported carbon footprint. In 2023, Scope 1 carbon dioxzide emissions (travel and waste) of bittium´s offices in Finland were 206.8 tCO2 (204.0 tCO2 in 2022) and Scope 2 emissions (heating and electricity) were 413.1 tCO2e (563 tCPO2e in 2022). |
| GRI 306: Waste (2020) | |||
| 306-2 | Management of significant waste-related impacts | Sustainability at Bittium in 2023; Environment, p. 85 |
| GRI 403: Occupational Health and Safety (2018) | |||
|---|---|---|---|
| 403-1 | Occupational health and safety management system | Sustainability at Bittium in 2023; Innovative and Developing People, p. 69 | |
| 403-2 | Hazard identification, risk assessment, and incident investigation | ustainability at Bittium in 2023; Innovative and Developing People, p. 69 | Bittium is constantly developing its occupational safety processes and risk management. More information regarding subcontractors can be found in the Bittium Supplier Manual: www.bittium.com/about-bittium/suppliers/supplier-manual |
| 403-3 | Occupational health services | Sustainability at Bittium in 2023; Innovative and Developing People, p. 69 | Healthcare services that are more extensive than required by law cover 99% of the personnel. Occupational health services as part of compliance with the Customer Liability Act is part of Bittium´s subcontracting process. |
| 403-4 | Worker participation, consultation, and communication on occupational health and safety | Sustainability at Bittium in 2023; Innovative and Developing People, p. 69 | |
| 403-5 | Worker training on occupational health and safety | Sustainability at Bittium in 2023; Innovative and Developing People, p. 69 | All Bittium locations have appropriate safety plans, and safety issues are taken into account in Bittium´s personnel orientation program. Occupational health matters are communicated to the staff regularly. Subcontracting companies are responsible for the occupational health and occupational safety training of their employees in accordance with their own principles. Bittium trains the subcontractors working at Bittium´s premises. Subcontractors working at Bittium´s customers´ premises are trained by the customer. In other respects, the subcontractors themselves are responsible for the training of their employees. |
| 403-6 | Promotion of worker health | Sustainability at Bittium in 2023; Innovative and Developing People, p. 69 | |
| 403-7 | Prevention and mitigation of occupational health and safety impacts directly linked by business relationships | Sustainability at Bittium in 2023; Innovative and Developing People, p. 69, Trust-based Customer Relationships and Secure Products, p. 72 Corporate Citizenship and Sustainable Business, p. 76, | More information regarding subcontractors can be found in the Bittium Supplier Manual: www.bittium.com/about-bittium/suppliers/supplier-manual |
| 403-8 | Workers covered by an occupational health and safety management system | All Bittium employees are covered by the occupational health and safety management system. | |
| 403-9 | Work-related injuries | Sustainability at Bittium in 2023; Innovative and Developing People, p. 69 | In 2023, Bittium´s Finnish companies did report 0 safety and near-miss findings and 11 occupational accidents, one of which resulted in the short, passing incapacity for work but no liability for compensation according to the Occupational Accidents and Occupational Diseases Act. |
| 403-10 | Work-related ill health | Sustainability at Bittium in 2023; Innovative and Developing People, p. 69 | The sickness absence rate was 2.3% in 2023 (calculated from the occupational health service provider´s data per day/person vs. theoretical regular working hours). Bittium does not have information available regarding temporary labor. The most significant workability risks are related to musculoskeletal diseases, coping at work, and mental well-being. |
| GRI 404: Training and Education | |||
| 404-1 | Average hours of training per year per employee | Sustainability at Bittium in 2023, Innovative and Developing People, p. 71 | Bittium reports the number of training days / person. |
| 404-2 | Programs for upgrading employee skills and transition assistance programs | Sustainability at Bittium in 2023, Innovative and Developing People, p. 68 | |
| GRI 405: Diversity and Equal Opportunity | |||
| 405-1 | Diversity of governance bodies and employees | Corporate Governance Statement, Diversity Principles of the Board of Directors, p. 36; Sustainability at Bittium in 2023, Innovative and Developing People, p. 71 |