Annual Report 2020
Report by the Board of Directors
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Statement of Non-Financial Information

Bittium is an international technology company specializing in the development of reliable and secure communication and connectivity solutions. The company offers high information security mobile solutions to the defense industry and public administration and healthcare operators, among others. The company is committed to responsible and sustainable business through its sustainability program. The sustainability program is based on the company´s strategy, values, stakeholder expectations and megatrends in the operating environment, which include digitalization and aging of the population, as well as information security.

Sustainability is part of Bittium´s organizational culture and way of work. The company identifies and manages risks related to sustainability 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 day-to-day operations.

Key Operating Principles

Bittium´s operations are guided by good corporate governance, ethical principles, and codes of conduct. Bittium monitors the achievement of the targets set for the sustainability focus areas set in the Sustainability Program for 2020–2022 with various indicators. Bittium´s sustainability focus areas are personnel development, confidential customer relationships and information security products, corporate citizenship and responsible business practices, and environmental responsibility. The priorities of the program are reflected in relation to the UN Sustainable Development Goals.

Bittium´s partners are expected to comply with Bittium´s Code of Conduct, Supplier Guidelines and Bittium Supplier Manual and Bittium Supplier Requirements, which include, for example, Bittium´s policies and supplier selection and quality control requirements. Bittium reviews the principles of responsible operations of suppliers and partners and audits them in accordance with defined criteria.

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 in areas such as the defense and information security industries, and closely monitors changing legislation in various market areas. During 2020, the company has further developed internal processes related to export control, for example in cooperation with authorities.

Environmental Topics

Responsibility for the environment, climate change mitigation and resource-efficient solutions are an important part of Bittium´s operations and development. Bittium´s business mainly focuses on product design, assembly and sale of products of manufactured by partners, and marketing, which accounts for a small portion of the environmental impact of product life cycles. The biggest environmental impacts are caused by product recycling. The overall life cycle impacts of a product are affected by optimizing the life span and recyclability of the products.

The company´s (group´s) scope 1 CO2 emissions in 2020 were 104.5 tCO2 (travelling and waste) and scope 2 emissions 649 tCO2 (heating and electricity). The share of renewable energy in Bittium group´s operations was 17 percent in 2020 (17%).

As part of the 2020–2022 environmental program, Bittium develops environmental data management, which aims to improve the usability and availability of monitored data for both traditional indicators and new monitoring targets. In addition, Bittium aims to improve the climate awareness of its employees by providing information on the effects of everyday choices on mitigating climate change.

Social Responsibility and Corporate Citizenship

Bittium´s equality plan is based on the Equality and Gender Equality Act. The Company does not allow discrimination or unequal treatment based on gender, age, origin, religion or belief, opinion, sexual orientation, disability, or any other personal reason. The implementation of equality is examined, for example, through personnel surveys and surveys from the perspective of pay, career development and recruitment. In addition to the annual personnel surveys, in 2020, the company introduced the bi-weekly Pulssi survey, which inspects personnel´s resilience during the Covid-19 pandemic.

The most typical work ability risks in the industry are musculoskeletal disorders, as well as coping at work and mental well-being. Bittium invests in good occupational ergonomics and occupational health care services that support the well-being of its employees, as well as other employee benefits. In 2020, three accidents at work were reported in Bittium´s Finnish companies.

Bittium is an active player in its local community. The company cooperates with local educational institutions in the form of educational visits. Due to the Covid-19 pandemic in 2020, it has not been possible to organize student visits.

Respect for Human Rights and the Fight against Corruption and Bribery

In all its business activities, Bittium respects human rights, avoids violating the human rights of others, and intervenes in the potential negative human rights impacts of its activities in accordance with the UN Guiding Principles on Business and Human Rights. At Bittium, monitoring the implementation 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 with regards to, among other things, supplier requirements and material reports related to materials and components. Staff training is part of ensuring responsible sourcing. During 2020, no doubts were reported to Bittium regarding minerals in conflict areas.

Due to 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 activities or in the activities of its partners. The company has internal and external guidelines for preventing anti-corruption activities, and staff receives training related to the guidelines. The company has a monitoring tool in place to identify corruption or other ambiguities in its partners, and the company has a channel for its stakeholders to report breaches of anti-corruption rules anonymously. In 2020, the company didn´t become aware of any suspicions of corruption.