Statement of Non-Financial Information

Bittium is an international technology company that offers socially useful technical innovations that improve communication connections, create security and promote healthcare.

The company is committed to responsible and sustainable business through its sustainability program. The sustainability program is based on the company´s strategy, values, stakeholders´ expectations and megatrends in the operating environment, which include digitization and the aging of the population as well as information security.

Bittium´s new sustainability program is valid for the years 2022–2025. The company´s sustainability work focuses on three key themes: personnel, customers and information security, and the environment. Ethical principles and responsible business practices are the basis of all activities.

Sustainability is part of Bittium´s organizational culture and way of working. The company identifies and manages liability-related risks as part of the company´s risk management, which emphasizes the role of the company´s management group and the Board of Directors in implementing measures in daily operations.

Key Operating Principles

Bittium´s operations are based on values, ethical principles, and a Code of Conduct. The code of conduct is part of the orientation program for new employees. Over the next few years, Bittium aims to bind all its partners and suppliers to the Code of Conduct through contracts.

Bittium´s partners are expected to comply with Bittium´s Code of Conduct principles and the supplier manual (Bittium Supplier Manual), which state, for example, Bittium´s policies and requirements regarding the selection of suppliers and quality control. Bittium reviews the principles of sustainable operation of suppliers and partners and audits them according to the defined criteria. In 2022, the company conducted audits of critical manufacturing partners and, where applicable, also of component suppliers, which were carried out physically at the suppliers´ premises. The audits of new suppliers were carried out as a self-assessment.

Export control is an important part of the company´s operations and a prerequisite for cooperation between authorities and customers. The company has always followed the instructions and rules of export control when operating, for example, in areas of the defense and information security industries, and closely follows the changing legislation in different market areas. During 2022, Bittium continued the development work related to the export control system and procedures, which has improved the processing of license applications in the company.

Environmental Matters

Responsibility for the environment, climate change mitigation and resource-efficient solutions are an important part of Bittium´s operations and development. In accordance with its environmental policy, Bittium is committed to minimizing the environmental impact in the production, use and disposal of the products it designs. That is why Bittium´s products are designed to be long-lasting, repairable, and recyclable. Since Bittium´s business is mainly focused on the beginning of the products´ life cycle, its environmental impact is very small. The biggest environmental impact is caused by recycling the product.

In the new responsibility program, Bittium focuses on monitoring three environmental indicators that measure the environmental effects of operations: the development of the carbon dioxide equivalent (CO2ekg), the development of the energy used (Mwh) and the percentage share of renewable energy in the total energy use.

The most significant areas in reducing Bittium´s carbon footprint are the recycling of waste generated from operations, the utilization of renewable energy sources and increasing the environmental awareness of the personnel.

The Scope 1 carbon dioxide emissions (travel and waste) of Bittium´s offices in Finland were 204.0 tCO2 in 2022 (102.9 tCO2 in 2021) and the Scope 2 emissions (heating and electricity) were 563.5 tCO2e (615.7 tCO2 in 2021). Bittium´s total energy consumption decreased by 8.6% and was 3,827 MWh (4,187 MWh in 2021). Regarding the office space in Oulu, about 5 percent of the energy used was produced with solar energy on an annual basis (goal >5 percent). The share of renewable energy in the energy used in Finnish offices was more than 35 percent (35% in 2021).

Bittium´s waste utilization rate was 99 percent last year (goal > 95%).

In the training to increase the environmental awareness of the personnel, the focus was especially on improving energy efficiency.

Social Issues and Employees

Personnel

Bittium does not allow discrimination or unequal treatment based on gender, age, origin, religion, or belief, opinion, sexual orientation, disability, or any other reason related to the person. The realization of equality is examined, for example, with the help of personnel surveys and research from the perspective of salary, career development and recruitment. The central measure of the annual personnel survey was the personnel engagement index, the result of which was 3.7 (scale 1–5), which reached the set goal. Personnel training is central to Bittium from the perspectives of both maintaining expertise and strengthening specialized expertise.

The most typical work ability risks in the field are musculoskeletal disorders, coping at work and mental well-being. Bittium invests in good work ergonomics and occupational health care services that support the well-being of the personnel, as well as other personnel benefits. In 2022, 3 workplace accidents were reported in Bittium´s Finnish companies, none of which resulted in incapacity for work.

Respect for Human Rights and the Fight against Corruption and Bribery

Bittium respects human rights in all its business operations, avoids violating human rights and intervenes in possible negative human rights impacts caused by its operations in accordance with the UN´s guiding principles for companies and human rights. At Bittium, monitoring the realization of human rights is mainly related to the activities of subcontractors and suppliers. Bittium takes care of the responsibility of the company´s supply chain, e.g., in terms of supplier requirements and material reports related to materials and components. Personnel training is part of ensuring responsible procurement. During 2022, Bittium has not been notified of any suspicions related to minerals in conflict areas.

Because of Bittium´s market and business areas, corruption is one of the key risks related to social responsibility. Bittium does not accept any form of bribery or corruption in its own operations or those of its partners. The company has internal and external guidelines drawn up to prevent anti-corruption activities, and an electronic self-study module on anti-corruption activities has been implemented for new employees. The company uses a monitoring tool to identify corruption or other ambiguities of partners, and the company´s stakeholders have a channel where they can anonymously report violations of anti-corruption rules. In 2022, the company did not become aware of any suspected corruption.

During 2022, Bittium developed its reporting channel procedures by establishing its own whistleblowing channel, through which employees and stakeholders outside the company can report their justified suspicions about abuses concerning the company´s operations. The channel will be commissioned in 2023.