Basis for Preparation

General Basis for Preparation of the Sustainability Statements (BP-1)

The reporting period for Bittium’s sustainability statement is consistent with the financial year January 1–December 31, 2024, and the sustainability statement has been prepared with the same scope of consolidation as the financial statements. The sustainability statement has been prepared in accordance with chapter 7 of the Finnish Accounting Act (1336/1997). The scope of reporting covers the operations of the entire Group and its subsidiaries, as well as the suppliers of goods and services that are material to Bittium’s operations. Where material, the reporting includes information on the impacts, risks and opportunities arising in the upstream and downstream value chain. The upstream and downstream value chain includes both direct and indirect suppliers.

Bittium has not used the option to omit information corresponding to intellectual property, know-how, the results of innovation, impending developments or matters in the course of negotiation.

Disclosures in Relation to Specific Circumstances (BP-2)

This is Bittium’s first sustainability statement prepared in accordance with the ESRS standards. Consequently, no comparative information in respect of previous reporting periods is reported. In its reporting, Bittium adopts the ESRS 1 definitions of short, medium and long term: short term is less than one year, medium term is 1–5 years, and long term is more than 5 years. The transitional provision has been applied in the descriptions of the anticipated financial effects for all of the topical standards.

With regard to the disclosure requirements under standards S2 and S4, the company decided to apply the transitional provision and report on the year 2024 in accordance with the minimum disclosure requirements stipulated by ESRS 1 Appendix C. Information related to the use of the transitional provision is provided under the topical standards. The reporting on the S2 and S4 standards for 2024 contains information on policies, targets, measures and metrics in accordance with the minimum disclosure requirements. Bittium will develop its data collection processes to further improve the quality of the collected and reported data and increase visibility throughout the value chain. These targets have also been incorporated into Bittium’s sustainability strategy for 2025–2028.

The metrics in this sustainability statement have been validated only by the sustainability statement’s assurance provider in accordance with the statement on the assurance of the sustainability statement, and no other external parties have been used. The following sources of uncertainty related to the sources used, results and measurements have been identified in Bittium’s reporting process:

In the GHG emission calculations in section E1, the best available emission factors for each emission category at the time of calculation were used. Assumptions were made in the calculation of the in-use emissions of sold products. The general emissions factors are often averages that do not take into account variations in operations or circumstances, which may increase uncertainty in the calculations.
The in-use emissions for products sold, reported under Scope 3 in section E1, were obtained by estimating the utilization rate of the devices based on publicly available research data. This is a source of uncertainty in the calculations.
Emissions caused by transport, reported under Scope 3 in section E1, were calculated on the basis of emissions reports obtained. Emissions reports accounted for approximately 12% of all transports, and 88% of transports were calculated using values obtained from the emissions reports. This is a source of some uncertainty, as it is not possible to be certain that the modes of transport are completely the same.
With regard to purchased materials under Scope 3 in section E1, performing the calculations using a reference product is a source of uncertainty.
Under Scope 3 in section E1, the sector-specific estimates and the values derived from emission databases, for example, always involve calculation uncertainty as they do not provide precise data.
In section E5, the accuracy of waste volume reports and the consistency of waste categorization between the waste reports of Bittium’s various operating locations were identified as sources of uncertainty. With regard to the information mentioned above, more detailed calculation methods related to the calculations and the boundaries, estimates and assumptions applied are described in more detail in connection with the information that is referred to in the reporting.

Transitional Provisions Used

ESRS-standards	Disclosure requirement	Basis for the transitional provision
ESRS 1	Applies to all comparative information provided in the report	10.3 Transitional provision regarding section 7.1 on presentation of comparative information
ESRS 2	SMB-1 40 (b) and (c) (Strategy, business model and value chain)	ESRS 1 Appendix C: List of disclosure requirements to be phased in
ESRS 2	SMB-3 48 (e) (Material impacts, risks and opportunities and their interaction with the strategy and business model)	ESRS 1 Appendix C: List of disclosure requirements to be phased in
ESRS E1	E1-9 (Anticipated financial effects from material physical and transition risks and potential climate-related opportunities)	ESRS 1 Appendix C: List of disclosure requirements to be phased in
ESRS E5	E5-6 (Anticipated economic impacts of impacts, risks and opportunities related to resource use and the circular economy)	ESRS 1 Appendix C: List of disclosure requirements to be phased in
ESRS S2	All disclosure requirements	ESRS 1 Appendix C: List of disclosure requirements to be phased in (exception for average number of employees (750))
ESRS S4	All disclosure requirements	ESRS 1 Appendix C: List of disclosure requirements to be phased in (exception for average number of employees (750))