Calculation methods and comments on outcomes

PERCENTAGE OF SALES FROM BUSINESS THAT CONTRIBUTES TO SUSTAINABLE DEVELOPMENT
Addtech wants to be part of the transformation to a sustainable development and sees considerable opportunities in business that contributes positively to society and the environment. A self-assessment has been done based on each business area’s existing product and service offering that addresses any of the sustainability challenges mentioned in the UN Global Sustainable Development Goals and their 169 targets. The revenue from these assignments are then estimated to be able to do a calculation of their share of total sales at a Group level, rounded to the nearest ten. The purpose of this key performance indicator is to identify a present situation to over time increase the share of our sales that contributes to a sustainable future and new business opportunities.

PROPORTION OF WOMEN, MANAGEMENT
The technology trading industry has historically been, and is still, male-dominated. Addtech wants to gradually increase the share of women and promotes female leadership. We therefore have an explicit vision to have gender equal management groups in the Group by 2030. The calculation of the share of women in management positions is done of the number of women who work in management groups at the Group and company level, in relation to the total number of employees that work in management groups. The purpose of the key performance indicator is to identify a present situation to be able to promote equal opportunities and increase participation of women in management and decision-making. During the year, we achieved an increase from 11 percent to 14 percent women in management positions. Read more about how we work with this on pages 28-29.

NUMBER OF REPORTED CASES OF DISCRIMINATION
Addtech endeavours to have no discrimination in the workplace. Every two years, an employee survey is done for all employees in the Group that includes questions about equal opportunity, diversity and discrimination. For the calculation of the share of employees who every felt discriminated, the number of responses of the nature “Do not agree” to the statement “I have never been discriminated against at work” is put in relation to the total number of employees. The work to promote an inclusive working environment without discrimination takes place decentralised through the companies’ own systematic work environment efforts with the support of Group-wide guidelines.

NUMBER OF REPORTED WHISTLE-BLOWER CASES
The cause of the whistle blowing may relate to any kind of impropriety or irregularity that is in conflict with our Code of Conduct, which covers bribery and corruption, the working environment, discrimination and environmental responsibility. In 2019, the implementation was initiated of a new whistle-blower system in order for the handling and categorisation of the whistle-blower cases to be done by an external party.

HEALTH & SAFETY
We apply a zero vision regarding work-related accidents, illness and incidents and promote health and well-being among our employees. We therefore continuously follow up key performance indicators for health and safety. For the calculation of the number of accidents, each company in the Group has reported the number of injuries that occurred due to or during the work, but not injuries caused during travel to and from work. The year was characterised by a continued low sickness absence.

EMISSIONS OF GREENHOUSE GASES
We want to conduct our business with the least possible impact on the climate. We therefore work to improve efficiency and reduce our resource consumption and emissions. Our carbon dioxide emissions are calculated according to the international standard Greenhouse Gas Protocol and are reported in three different scopes. The precautionary approach has been applied for all calculations.

- Scope 1 pertains to direct emissions from operations owned and controlled by us, including emissions from production and fuel consumption for vehicles where the operational control method has been used in the calculation and based on reported mileage and average emissions of 134 g Co2e/km from the Group’s vehicle fleet. With a new car policy that was implemented during the year, we want to encourage the selection of more environmentally friendly cars with the aim of reducing our emissions in Scope 1.

- Scope 2 pertains to indirect emissions from purchased and consumed electricity, heating and cooling. The emissions in Scope 2 were reported in accordance with the GHG Protocol’s guidelines for location-based emissions. The emissions factor for consumed electricity and heating is based on a high calculated average for Nordic electricity production and Swedish district heating production where 1 KWh is estimated to generate 0.1 kg CO2e. In the future, we intend to prepare location-specific emissions factors for electricity and heating consumption.

- Scope 3 pertains to indirect emissions from sources that are not owned or controlled by Addtech, and include among other things purchasing, logistics and business travel. The calculations are based on reports from transport providers and travel agencies. For upstream transports, all freight transports from suppliers to warehouse are calculated and with downstream transports, all freight transports from customer to warehouse are calculated. The transports that go directly from supplier to customer are counted as downstream. Our largest identified emissions in Scope 3 are within category 4: upstreams transport and distribution, category 9: downstream transport and distribution and 6: business travel (only air travel). The emissions from purchasing and use of our products have not been estimated in this phase.

During the year, the decision was made that we want to reduce our carbon dioxide intensity by 50 percent by 2030. With that vision, we want to grow in an even more climate-efficient manner. This work will continue in 2020/2021 with encouraging all companies in the group to set their own goals in line with the overall vision.

PERCENTAGE OF PURCHASING VOLUME EVALUATED BASED ON THE CODE OF CONDUCT
We have a large number of suppliers around the world and a majority of purchasing takes place from non-Nordic suppliers in Europe, the USA and Asia. The circumstance that production largely does not take place within our operations entails certain sustainability risks. At the same time, our supplier relations are often long and characterised by close cooperation on how the supplier’s products can be used in different customer applications. This benefits quality, price, lead times and customer satisfaction at the same time that it gives us the opportunity to have a constructive dialogue on the supplier’s sustainability risks and development. We are also constantly looking for new suppliers that can supplement or strengthen our business development. It is therefore important that both new and existing suppliers are evaluated in accordance with our Code of Conduct, an effort that is done decentralised at our companies. Our vision is to regularly review, evaluate and conduct a constructive dialogue with suppliers equivalent to 80 percent of our purchasing volume that is prioritised according to strategic importance and higher risk. With this, we seek to achieve positive economic, social and environmental changes in our supply chain.