Materiality Analysis

Bittium conducted a materiality analysis on sustainability in 2019. The aim of the analysis was to establish an understanding of the stakeholders’ views regarding the previously selected focus areas in sustainability. To support the materiality analysis, we carried out a stakeholder survey in the form of an online questionnaire for customers, partners, investors, employees, the management, and other stakeholders. A total of 125 people completed the survey.

The survey assessed the significance of Bittium selected sustainability focus areas for the company’s business and evaluated the content of each focus area to assess the company’s performance in taking each focus area into consideration. In addition, it was assessed whether there were any other areas of sustainability that were previously not included in Bittium’s selected focus areas, and that the company should take into consideration in its operations.

To increase the understanding of the stakeholders’ perceptions of Bittium’s sustainability, the respondents were asked to compare Bittium with other companies from the perspective of sustainability. Bittium’s average score was 8.3 on a scale of 1–10.

The participants were also asked to indicate their willingness to recommend Bittium as a sustainable company (Net Promoter Score, NPS). The stakeholders gave Bittium’s sustainability an NPS of 37, which can be considered to be a good score. NPS scores range from -100 to +100, and all scores above 0 are considered good.

After establishing the priorities of the identified material aspects, the final outcome of the analysis was a materiality matrix confirmed by the Management Group and the Board of Directors. The matrix summarizes the views of the company’s internal and external stakeholders regarding Bittium’s material aspects of sustainability as well as the company’s impacts and areas of development. After the priorities had been determined, the materiality matrix was approved in discussions held between Bittium’s Board of Directors and the Board’s Audit Committee.

The materiality analysis conducted in 2019 was also used for the basis when updating the sustainability program for the years 2022–2025.

As part of the preparation for the entry into force of the EU’s new sustainability directive, Bittium will implement a dual materiality determination in 2024. The analysis evaluates both external effects (the effects of the different stages of Bittium’s value chain on society and the environment) and internal effects (risks and opportunities affecting Bittium’s performance and business that may affect the company’s value now or in the future). Based on the definition of materiality, the company will update its responsibility program.