ESRS S1 – Own Workforce

Material Impacts, Risks and Opportunities

S1. Own Workforce

Material Impacts, Risks and Opportunities and Their Interaction with Strategy and Business Model (ESRS 2 SBM-3)

At the end of 2024, Bittium published its updated growth strategy for 2025–2028. In order to enable profitable growth, the company focused on transforming from a product development organization to a customer-oriented, growth-driven operating model through segment organizations in 2024. The personnel-related targets of the strategy are implemented and guided in more detail by a separate personnel strategy (valid for the period 2024–2025).

The policies related to the company’s own workforce are guided by plans that are updated and reviewed on a regular basis. (Bittium’s personnel-related policies and their relationship with the strategy are described in more detail in section S1-1. The relationship between Bittium’s strategy and business model and personnel-related risks and opportunities is also described in section ESRS 2 SBM-2.)

At the end of 2024, Bittium had a total of 511 employees in Finland, Germany and the United States. 99% of the personnel work in Finland. The scope of the information published in Bittium’s sustainability reporting covers all of the company’s own workforce as well as non-employee workers who perform duties for Bittium that correspond to the duties of the company’s own workforce.

A description of non-employee workers is provided in section S1-7. Most of Bittium’s personnel are full-time and permanent employees. Product development engineers are the largest employee group. The average age of the workforce is 47 years and the average number of years of employment at Bittium is over 10 years. The age structure is taken into account in the implementation of orientation training and competence development. The maintenance of the competence of experienced employees is supported by providing training opportunities to deepen competence. The transfer of tacit experience-based knowledge to newcomers to the field is one of the most important aspects of developing the workplace community – similarly, new professionals can offer new kinds of competence to their work community. The employer is committed to supporting long careers, and Bittium has introduced development discussions for older employees (aged 58 and over) in accordance with the career agreement.

In stakeholder interviews related to the double materiality assessment process, Bittium’s external stakeholders were requested to assess Bittium’s material topics related to the environment, social impacts and good governance. The material impacts on the company’s own workforce have not arisen from transition plans, and no related potential impacts were identified in the materiality assessment. The following topics were assessed as material for Bittium:

Bittium’s high level of know-how and professionalism, particularly in information security matters, and the availability of labor and competence development, are integral aspects of Bittium’s business operations. Investing in the competence of the personnel and ensuring specialized expertise help to guarantee Bittium’s position as a pioneer of technology. Bittium’s business is dependent on the company’s own workforce and its availability. The importance of looking after the personnel’s working conditions, diversity and well-being is also recognized at the strategic level. Investing in the personnel can attract skilled workers and improve competitiveness. Bittium’s own workforce works in regions and a sector in which the risk of the use of forced labor or child labor is not material due to local legislation, industry-related competence requirements and the effective monitoring of working conditions.

All of the impacts, risks and opportunities described above are widespread in nature and cover almost all of the company’s own workforce, or at least the majority of it. In some respects, the impacts concern particularly the following employee groups: employees who are young or have recently entered the industry, who need increased support in the early stages of their careers; older, more experienced employees who need special attention to deepen their skills; women, whose share in the male-dominated sector remains low. In these respects, the groups that may be particularly vulnerable to the impacts are described separately in the descriptions of the impacts. The assessments are based on consulting the personnel and other stakeholders as part of the double materiality assessment process and on data obtained from personnel surveys. (Bittium’s actions related to diversity and equality, training and competence development and the health and safety of Bittium’s workforce are described in section S1-4 of this report.)

Policies Related to Own Workforce (S1-1)

At Bittium, all of the policies related to the company’s own workforce cover the entire workforce in all geographical operating regions. The policies aim to strengthen the well-being, competence and commitment of the personnel to the company and its values. Bittium’s most significant policy related to its own workforce is the Code of Conduct, which describes Bittium’s corporate culture and was updated in late 2024. According to its Code of Conduct, Bittium is committed to conducting its business safely, sustainably, ethically and honestly, adhering to laws and respecting human rights and internationally recognized human rights initiatives, such as the UN Guiding Principles on Business and Human Rights. If human rights violations occur in Bittium’s own operations or value chain, they are investigated and sanctions are imposed as necessary, or contractual partnerships are re-evaluated.

According to the Code of Conduct, Bittium values diversity and does not tolerate any form of discrimination, sexual harassment or offensive or otherwise inappropriate behavior or verbal expression. This applies to physical, verbal, and written actions in any form or channel. Bittium is politically and religiously neutral. The company respects all individuals, regardless of age, gender identity, disability, personal characteristics or expression regardless of race, religion, belief, gender, sexual orientation, marital status, pregnancy or parental status, or any other characteristic protected by law. According to Bittium’s Code of Conduct, all forms of bullying, harassment and discrimination are prohibited and addressed promptly, and Bittium fosters equal opportunity and ensures equitable pay and compensation for employees. Bittium’s employment decisions are based on business needs and comply with the applicable labor laws and regulations.

According to the Code of Conduct, employees have the right to organize, join associations and negotiate collectively with the company. Bittium upholds the freedom of association and the right to belong to a trade union. Bittium’s employees can freely support legal community, charity, political and religious organizations of their choosing, provided they clarify that their views and actions are personal and not representative of Bittium. The Code of Conduct states that, as an employer, Bittium complies with the ILO Declaration on Fundamental Principles and Rights at Work, and that Bittium provides its employees with a healthy, safe and fair working environment. Bittium complies with international labor agreements and laws governing working hours, leave, wages and other terms of employment.

Bittium’s personnel-related targets are guided in more detail by a separate personnel strategy, through which processes and actions for implementing and monitoring the relevant policies are defined (for 2024–2025). Bittium has confirmed policies on the prevention of workplace accidents and a related management system. Bittium does not have specific policy commitments related to inclusion or positive action for people from groups at particular risk of vulnerability in its own workforce. Bittium’s Audit Committee and Board of Directors evaluate the policies, but the company has not observed a need to specifically examine them with regard to the areas of emphasis mentioned above. However, Bittium wants to increase the workplace community’s awareness of diversity among the company’s own personnel. Inspiring young women to enter the technology sector is also one of Bittium’s actions to promote equality and diversity.

Bittium’s policies related to the company’s own workforce correspond to internationally recognized frameworks, including the UN Guiding Principles on Business and Human Rights. Bittium is also committed to the UN Guiding Principles on Business and Human Rights, the ILO Declaration on Fundamental Principles and Rights at Work and the OECD Guidelines for Multinational Enterprises. (21) Bittium condemns all forms of forced labor and child labor and does not tolerate slavery, human trafficking, or any form of servitude in any circumstance, in any operating region or in any part of its supply chain. The aforementioned commitments are included in Bittium’s Code of Conduct.

Bittium’s Code of Conduct is publicly available on the company’s website and intranet. The company aims to communicate its policies to stakeholders and the personnel in the company’s strategy, personnel strategy and workplace community development plan. The Group CEO and Management Group is the most senior level in the organization in charge of the implementation of all of Bittium’s personnel-related policies.

Processes for Engaging with Own Workers and Workers’ Representatives about Impacts (S1-2)

Bittium organizes events for its personnel during the year as necessary to provide opportunities to ask questions and give feedback. Providing opportunities for open dialogue and presenting questions directly to the company’s management have also been important aspects of the engagement of the personnel. To support the implementation of its strategy and new operating models, Bittium organized more personnel events and briefings in 2024 than usual.

In addition to giving feedback at personnel events, Bittium’s personnel give feedback through the anonymous annual Bittium Employee Survey (BES). In addition to conducting the annual employee survey, the company also assessed personnel satisfaction by means of a pulse survey in 2024. The results of both surveys are available to the employees on the company’s intranet.

The results of the survey are addressed by Bittium’s Board of Directors and Management Group and at the business segment and team levels. The progress of the measures prepared on the basis of the results is reviewed in the business segments’ quarterly briefings. KPIs and personnel-related indicators are reviewed on a monthly basis in the business segments’ management teams, and they are reported to the Board of Directors. Themes related to diversity, discrimination and equality are evaluated by means of an equality survey when the equality plan is updated. The company’s CEO has the highest operational responsibility for ensuring that engagement with the personnel takes place and that the results are taken into consideration in the company’s operating practices.

Processes to Remediate Negative Impacts and Channels for Own Workers to Raise Concerns (S1-3)

The company’s whistleblowing channel provides the opportunity to confidentially report suspected misconduct to the organization. The channel and whistleblowing instructions are available to everyone on the internal website. All whistleblower reports are processed according to a uniform model, regardless of who the whistleblower is. (Descriptions of the whistleblowing channel and the whistleblower protection process are provided in section G1-1 of this report.)

Bittium aims to communicate to employees openly and directly, especially in matters concerning the employees themselves. Development needs, potential concerns and wishes arising from the personnel are discussed in development discussions. Supervisors are responsible for monitoring the implementation of the agreed remedies and evaluating outcomes. The employer engages in cooperation with employee representatives in accordance with the Finnish Act on Co-operation within Undertakings. One form of cooperation is dialogue aimed at developing the company’s operations and workplace community and increasing the personnel’s opportunities to influence matters pertaining to opportunities or concerns related to the personnel.  Employee representatives also have the opportunity to raise questions or concerns related to an individual person or personnel group in discussions with the employer’s representative. The personnel also have a legal right to belong to a trade union and to contact their union in matters related to any problems that may arise at the workplace. No agreements were concluded with the personnel or their representatives in 2024.

An occupational safety organization and an occupational safety committee have been established at Bittium. The key target of occupational safety and health activities is to safeguard the occupational health and work ability of Bittium’s personnel. Occupational safety risks and any changes made at the workplace that support work performance must be brought to the attention of all parties concerned and always also the occupational safety and health manager and occupational safety and health representative. Employees can raise concerns about work and the working environment by contacting the occupational safety and health officer so that their concerns are addressed by the company. Occupational safety and health is also subject to oversight and regulation at the national level by occupational safety and health authorities, whom the employees can also contact. (The occupational safety and health department of the Regional State Administrative Agency).

Bittium has built an early support model that describes how to act as a company and as individuals in situations where risks or changes in the well-being of personnel or individuals are observed. The early support model is supplemented by guidelines on referral to treatment in substance abuse cases and a model for the resolution of conflicts. The occupational healthcare provider serves as Bittium’s partner regarding risks and problems related to health and work ability. Bittium has prepared guidelines entitled “Conflict prevention and resolution model”. The employer must address inappropriate behavior at the workplace and strive to make consistent and fair decisions to investigate matters, remedy harm and, if necessary, impose sanctions. Bittium doesn’t have any specific processes by which it evaluates staff trust or awareness of its channels.

Taking Action on Material Impacts on Own Workforce, and Approaches to Managing Material Risks and Pursuing Material Opportunities Related to Own Workforce, and Effectiveness of Those Actions (S1-4)

Personnel with a high level of competence and well-being has been identified as an opportunity and an important competitive factor for Bittium. Bittium’s personnel-related plans are used to implement strategic targets that are guided in more detail by a separate personnel strategy (for the period 2024–2025). Personnel-related actions are guided by the equality plan, the workplace community development plan – the aim of which is to develop personnel systematically and with a long-term approach – and the occupational healthcare action plan. These plans are updated and reviewed on a regular basis. The workplace community development plan was most recently updated in 2024.

Most of the work performed at Bittium is product development. The employees primarily work in projects, in which schedules and workload may vary quickly depending on the business situation and needs. Work-related risks and stress factors are also surveyed in workplace surveys carried out by the occupational healthcare partner. These surveys highlighted psychosocial stress and static work postures as issues. In response to the results, Bittium has taken increased action with regard to ergonomics and working in an open-plan office, among other considerations. Reports are prepared on the basis of workplace surveys. The reports include recommended actions. In addition, the occupational safety and health guidelines describe methods for avoiding and managing work-related risks, and the internal website provides the personnel with instructions on what to do in the event of a workplace accident or commuting accident.

All Bittium sites have rescue plans in place to reduce occupational safety risks. The physical risks associated with work tasks at Bittium are generally fairly minor, but ensuring electrical work safety requires special attention. One of the targets of Bittium’s occupational safety and health action plan for 2023–2024 was to increase personnel awareness of the internal channel for reporting close calls, develop its usability and, indirectly, to improve the safety of the personnel. No observations of close calls were reported via the channel in 2024. Bittium’s HR management and OHS function examine occupational accidents at regular intervals and whenever particular risks emerge.

The principles concerning the diversity of Bittium’s Board of Directors have been established as part of the company’s Code of Conduct and the Corporate Governance Statement. Bittium also wants to present the technology industry as an attractive option for women, who are still under-represented in this field, and to non-binary persons. For the second consecutive year, Bittium participated in the Shaking Up Tech event, where Bittium’s female employees talked to young people in general upper secondary education about their work as a product developer, test engineer or UI/UX designer, for example. The most material policies with respect to impacts related to a safe, diverse and equal workplace environment are laid down in Bittium’s equality plan, which is based on the Finnish Non-Discrimination Act and the Finnish Act on Equality between Women and Men. The key measures under the equality plan are focused on equal pay and career opportunities, the openness of recruitment, and systematically supporting the careers of aging employees. As the most significant measure taken in 2024, special attention was paid to gender equality in the allocation of wage adjustments in accordance with the collective agreement. The equality plan is valid until January 2026.

Working conditions have been identified as an impact related to motivation and commitment in the materiality assessment. At Bittium, most employment contracts are permanent and the reason for the temporary employment is always specified in the employment contract. Bittium’s HR function monitors the number and duration of temporary employment relationships and the number of hours worked, and addresses excessive workload issues at an early stage. Bittium strives to promote work-life balance by enabling flexible working time arrangements and hybrid work as applicable (approximately 75% of the personnel can take advantage of these). Bittium supports team spirit and cohesion-building activities by organizing recreational events and parties and by enabling various activities. Actions taken regarding impacts related to physical and mental well-being include a company bicycle benefit, lunch benefit and personnel discounts, as well as culture, sports, massage, dental care and commuting benefits offered via the E-passi employee benefit platform. 

Bittium’s actions to promote the well-being of the personnel include the provision of occupational healthcare services that exceed the legal requirements, as well as other personnel benefits. With regard to the impacts related to working conditions and the health and safety of employees, the company regularly identifies hazards and risks related to the health, safety and occupational well-being of its personnel as part of statutory occupational healthcare. The medical care provided by the occupational healthcare partner focuses on occupational health, and aspects related to maintaining the employee’s work ability are emphasized during appointments. The purpose of health examinations is to maintain and promote the employees’ work ability and health. Health examinations are carried out at the start of the employment relationship if the employee so wishes, and always when an employee performs a task that poses a particular risk of illness. In addition, health monitoring examinations and health surveys are conducted on a targeted basis for certain age groups and workplace communities, for example. Follow-up examinations are also conducted for employees with a partial disability. Occupational healthcare participates in meetings of the occupational safety and health committee upon invitation. Workplace surveys are carried out in cooperation with the occupational safety and health organization at least once every five years and in connection with significant changes. No separate measures related to occupational healthcare were agreed upon by the occupational safety and health committee in 2024.

As targeted actions concerning impacts related to personnel competence development and training, Bittium organizes regular performance reviews various training activities and learning platforms, such as Pluralsight. Bittium also provides opportunities for professional growth through Bittium’s training portal (Bittium Talent Academy), for example.  Bittium’s target is to maintain the competence of its personnel and ensure special competence. Bittium responds to changing information security requirements by training the personnel and by participating in Finnish and international information security development projects. Online training activities are an important part of the maintenance of the Group’s common basic competencies related to processes, operating practices, systems and tools, for example. In the development of skills, examples of the current themes include topics related to information security, quality systems, programming languages, working in a cloud environment, and embedded systems. A Sales Excellence training program was introduced in 2024 for people working in sales. As part of the Sales Excellence program, the company also implemented training related to contract management and Key Account Management training. 

Bittium assesses the necessity and appropriateness of various actions based on, for example, the results of personnel surveys and external audits. The adequacy of the actions and the need for additional actions are regularly assessed in connection with the updating of the occupational safety and health action plan and the workplace community development plan. The personnel are consulted on themes related to equality and non-discrimination as part of the equality and non-discrimination survey. The expenses of actions that affect the personnel are considered to be normal operating expenses and they do not require significant additional investments. All of the actions concerning the personnel cover Bittium’s own personnel. For individual employees working in the United States and Germany, benefits and local measures are implemented as applicable.

Targets Related to Managing Material Negative Impacts, Advancing Positive Impacts, and Managing Material Risks and Opportunities (S1-5)

The company carried out a materiality assessment in 2024. As the targets for 2024 were set in 2023, there was no interaction with the materiality assessment carried out in 2024. No base year or baseline was defined for these targets. The quantitative targets set for 2024 as part of the strategy process were as follows:

Targets set in the personnel strategy:

In 2024, the company redefined its sustainability-related targets based on the strategy and the materiality assessment carried out by the company (base year 2024).  The targets set for 2025–2028 were based on the material impacts, risks and opportunities identified in the materiality assessment (base year 2025). A materiality assessment carried out in cooperation with key stakeholders has been utilized in setting targets for 2024 and the years 2025–2028, and the participation of the HR function, among others, has also been engaged. The targets apply to all of Bittium’s personnel regardless of geographical regions. The strategy and the related targets and KPIs are addressed as part of statutory employer–employee cooperation, in dialogue events with employee representatives. The achievement of targets is reviewed on a monthly basis in the business segments’ management teams and reported to the Board of Directors. In 2024, the KPI targets were achieved in all respects. Consequently, no significant operational improvement needs were identified.

For the period 2025–2028, Bittium has set the improvement of the well-being of its own workforce as a personnel-related target as part of its strategy work. The quantitative metrics defined for the target “Personnel with a high level of well-being and commitment” are the development of the results of the personnel survey statement concerning personnel satisfaction and workload. The quantitative metrics defined for the target “Strong sustainability culture” are based on employee participation in sustainability training. The quantitative metrics defined for the target “Diverse and highly competent personnel” are the age distribution, gender distribution and amount of training completed.

Characteristics of the Undertaking’s Employees (S1-6)

At the end of 2024, Bittium had 511 employees, of whom 77 (15%) were female and 434 (85%) were male. There were 486 employees in permanent employment relationships, of whom 73 were female (15%) and 413 were male (85%). The workforce decreased by 46 persons during the reporting period due to resignation, retirement or death. Eight employees were dismissed during the reporting period. Employee turnover during the reporting period was 8.0%.

There were 29 part-time employment contracts, corresponding to 4% of all employment contracts (17%female, 83% male). Full-time employment contracts represented 94% of all employment contracts (15% female, 85% male). In most cases, the reasons for the part-time employment contracts were the personnel’s own wishes for flexible working time arrangements. The percentage of non-guaranteed hours employees was 1.6% (0.2% female, 1.4% male). There were 25 employees in temporary employment relationships, of whom 4 were female (16%) and 21 were male (84%).

The information covers all employees who work for an entity that is within the scope of the company’s sustainability reporting, regardless of the geographical region. The information has been collected from the company’s HR system and provided as the head count at the end of the reporting period. The number of employees reported in the financial statements at the end of the reporting period was 511.

1.1.–31.12.2024

Characteristics of Non-Employee Workers in the Undertaking’s Own Workforce (S1-7)

Bittium’s workforce also includes non-employee workers. In addition to its own employees, Bittium has leased workers, who include people provided by undertakings primarily engaged in employment activities, subcontractors and self-employed people. Leased workers may work in assembly duties in production, subcontractors may perform design tasks in product development, and self-employed people may serve in advisory and consulting roles, for example.

Bittium had 32 non-employee workers in 2024. The information has been collected from the company’s HR system and provided as the head count at the end of the reporting period.

Diversity Metrics (S1-9)

At the end of 2024, Bittium had a total of 511 employees in Finland, Germany and the United States. 99% of the company’s employees are based in Finland. The age distribution of employees is as follows: under 30 years old, 39 persons (8.0%); 30–50 years old, 291 persons (57.0%); and over 50 years old, 180 persons (35.0%). Of the employees, 77 (15%) are female and 434 (85%) are male. Of supervisors, 9 (18%) are female and 40 (82% are male. The Management Group has 2 female members (29%) and  5 male members (71%). The Board of Directors has  1  female member (17%) and 5 male members (83%). The gender and age distribution of Bittium’s employees and management is determined on the basis of information obtained from the HR system.

Social Protection (S1-11)

All of Bittium’s employees in the Finnish companies are covered by social protection, through public programs and benefits, against loss of income due to any of the following major life events: sickness, unemployment starting from when the own worker is working for the undertaking, employment injury and acquired disability, parental leave, and retirement. In the United States, social security benefits are granted by the government based on eligibility for such programs. The company also has processes related to employee compensation, disability leave and return to work. In the United States, Bittium also offers employer-supported healthcare and pension schemes, sick leave and parental leave. All employees are eligible for benefits on the basis of legislation confirmed by governments or agencies and the plan documents of employer-supported schemes. Social security in Germany comprises five statutory areas: health insurance, long-term care insurance, pension insurance, accident insurance and unemployment insurance. EU legislation safeguards the right to take parental leave, carers’ leave and holidays.

The information related to S1-11 is based on the background assumption that the level of social protection established by Finnish national legislation is sufficient to cover the needs of social protection arising from significant life events. For persons working outside Finland, the information has been obtained from the party responsible for the personnel in the United States and, for Germany, the information is based on material provided by the auditor and accounting firm.

Training and Skills Development Metrics (S1-13)

In 2024 the number of days of training was  750 which corresponds to an average of 1.5 days per worker. This includes both internal and external training as well as orientation training and independent study. Internal training may also involve on-the-job learning and the sharing of expertise, and external training may involve independent study.

Approximately 60 % of the personnel participated in training in  2024. Total participation in training amounted to 5,600 hours (11,0 hours per person on average). For women, training participation amounted to 1,600 hours (21.2 hours per person on average). For men, training participation amounted to 4000 hours (9.2 hours per person on average).

Performance reviews are conducted annually at Bittium. Of the personnel, 83% participated in regular performance reviews: 66% of women (51 persons) and 86% of men (372 persons, total 423 persons). Bittium employees’ participation in training and performance reviews is documented and reported on the basis of the data obtained from the HR system.

Health and Safety Metrics (S1-14)

All Bittium employees in the Finnish companies (100%) are covered by an occupational health and safety management system that takes into account the requirements of the Finnish Occupational Health Care Act. All Bittium sites in Finland have appropriate safety plans in place. Employees can report potential safety-related observations and close calls via a reporting channel provided specifically for reporting close calls. No observations of close calls were reported via the channel in 2024. Bittium did not have any recordable work-related ill health among its employees or cases subject to legal restrictions on the collection of data.

The number of safety observations and close calls reported in Bittium’s Finnish companies in 2024 was zero. There were 6 reported work-related accidents or commuting accidents, one of which resulted in temporary disability, but no liability for compensation pursuant to the legislation governing work-related accidents and occupational diseases. The rate of recordable occupational accidents was 6.2 (calculated per million working hours).  There were no work-related fatalities. For the company’s employees, the number of days lost due to work-related injuries and work-related ill health was 28.

Remuneration Metrics (Pay Gap and Total Remuneration) (S1-16)

The gender pay gap for all Bittium Group employees in 2024 is 4.7%. The calculation is based on the employees’ last day’s salary, plus any external bonuses and bonuses paid during the year, as well as holiday pay. This includes all Bittium employees on the last day of the year from all countries including CEO of the company.

The annual total remuneration ratio between the highest-paid employee and the median salary is 5.7. This is calculated as the ratio of the highest-paid employee’s base salary to the median base salary of all employees (excluding the highest-paid employee).

Bittium also analyses the implementation of pay equality according to the job’s complexity and job profile.