Reporting Basics and Principles

Scope of Reporting

This sustainability report, as part of the annual report, is the second extensive report on the management and implementation of sustainability at Bittium. We have developed our sustainability metrics, providing more information on impacts and expanding the scope of reporting. In order to enable comparability, Bittium's sustainability report is based on the Global Reporting Initiative (GRI) Standards framework. The table at the end of the report contains references to the relevant elements of the GRI Standards framework.

The report covers the three sustainability focus areas, a description of Bittium´s environmental responsibility and financial effectiveness. 

The financial data is collected from Bittium´s financial information systems, and the majority of personnel data is from HR management systems. The reported financial figures are based on Bittium´s audited financial statements from 2017 and 2018.

Bittium selected its reporting model on the basis of Bittium´s sustainability principles, taking into account the GRI framework and the focus areas of the Company´s business: wireless, secure communications in B2B operations. Bittium has customers both in Finland and in other countries. However, the majority of operations and most of the personnel are located in Finland.

This report will be published in electronic form in connection with the Group´s annual report at www.bittium.com and https://annualreport.bittium.com.

Scope of the Report

The period covered by the sustainability report is the same as the financial period, January 1–December 31, 2018. Environmental data is not reported from offices where the Company only uses a part of the office premises.

The report does not cover all suppliers or service providers. In other respects, the report covers all the operations of Bittium Corporation and its subsidiaries.               

Reporting Principles and Instructions

Financial reports are governed by the International Financial Reporting Standards (IFRS), and governance reports comply with the legislation on listed companies and the Finnish Corporate Governance Code that applies to listed companies.

The reported financial data is based on audited financial statements.

Principles and Practices for External Verification

The 2018 sustainability report follows the core level of the GRI Standards guidelines. The sustainability report has not been verified by an independent third party. The figures presented in the Financial effectiveness' section are based on the Group's audited financial statements.

Sustainability Contact at Bittium:

Karoliina Fyrstén,
Director, Communications and Marketing
karoliina.fyrsten@bittium.com 

GRI index

Page numbers in the chart refer to downloadable print version of the Bittium Annual Report 2018.

GRI 102 General Disclosures

G4 Title Location Additional info/comments
Organization
102-1 Name of the organization Bittium in Brief page 8
102-2 Activities, brands, products, and services Bittium in Brief;
Bittium Products and Services
page 8
page 12
102-3 Location of headquarters Bittium in Brief page 8
102-4 Location of operations Bittium in Brief page 8
102-5 Ownership and legal form Corporate Governance page 29
102-6 Markets served Bittium in Brief page 8
102-7 Scale of the organization Financial statement page 71
102-8 Information on employees and other workers Innovative and Developing People page 55
102-9 Supply chain Sustainable Purchase page 53
102-10 Significant changes to the organization and its supply chain GRI Standards Content List No major changes
page 67
102-11 Precautionary Principle or approach Corporate Citizenship and Sustainable Business Practices Corporate Governance Statement page 62
page 29
102-12 External initiatives   None
102-13 Membership of associations   Technology Industry Association
Strategy
102-14 Statement from CEO Statement from CEO page 6
102-15 Key impacts, risks, and opportunities Business and Operating Environment
Main features of Internal Control and Risk Management Processes related to Financial Reporting Processes
page 8
page 41
Ethics and Integrity
102-16 Values, principles, standards, and norms of behavior Corporate Citizenship and
Sustainable Business Practices
page 62
102-17 Mechanisms for advice and concerns about ethics Corporate Citizenship and
Sustainable Business Practices
page 62
Governance
102-18 Governance structure Corporate Governance page 29
102-19 Delegating authority Corporate Citizenship and
Sustainable Business Practices
page 62
102-21 Consulting stakeholders on economic, environmental, and social topics Stakeholder Cooperation Corporate Governance Statement page 53
page 29
102-22 Composition of the Board Corporate Governance page 29 
102-23 Chairman of the Board Corporate Governance page 29
102-24 Election of the Board Corporate Governance page 29
102-32 Highest governance body´s role in sustainability reporting Sustainability Organization page 52

102-35

Remuneration policies

Corporate Governance Statement: Remuneration

page 29
www.bittium.com/investors/
corporate-governance

Stakeholder Engagement
102-40 List of stakeholder groups Stakeholder Cooperation page 53
102-42 Identifying and selecting stakeholders Stakeholder Cooperation page 53
102-43 Approach to stakeholder engagement Stakeholder Cooperation page 53
102-44 Key topics and concerns raised Stakeholder Cooperation page 53
Reporting Principles
102-45 Entities included in the consolidated financial statements Entities included in the Consolidated Financial Statements; Notes to the Consolidated Financial
Statements note 32: Related Party Disclosures
page 66
page 125
102-46 Defining report content and topic Boundaries Defining report content
and topic Boundaries
page 46
page 66
102-47 List of material topics List of material topics page 46
page 54
102-48 Restatements of information Restatements of information Enhancement of information
102-49 Changes in reporting Changes in reporting No major changes
102-50 Reporting period Reporting period page 66
102-51 Date of most recent report GRI Standard Content Index March 21, 2018
102-52 Reporting cycle Reporting Report is published annually,
page 66
102-53 Contact point for questions regarding the report Karoliina Fyrstén
Director, communications and marketing karoliina.fyrsten@bittium.com
page 67
102-54 Claims of reporting in accordance with the GRI Standards Reporting Basics and Principles page 66
102-55 GRI content index GRI content index page 67
102-56 External assurance Reporting Basics and Principles page 66

 
GRI 103 Management Approachs

103-1 Entities included in the consolidated financial statements Entities included in the
Consolidated Financial Statements
Calculation boundary: Bittium Corporation
103-2 The management approach and its components Sustainability Management;
Focus Areas of Sustainability
page 52
page 54
103-3 Evaluation of the management approach Sustainability Management Management Review
page 52

 
TOPICAL CONTENT

Financial impacts

201 Economic performance
201-1 Direct economic value generated and distributed Financial influence page 50
202-4 Financial assistance received from government Notes to the Consolidated Financial Statements
note 4: Other Operating Income
page 99
205 Anticorruption
205-3 Confirmed incidents of corruption and actions taken Corporate Citizenship and
Sustainable Business Practices
page 50
page 62

 
Environmental Impacts

301 Materials
301-1 Materials used by weight or volume Responsibility for the Environment Use of paper, page 65
Use of carton, page 65
Use of metals, page 65
302 Energy
302-1 Energy consumption within the organization Corporate Citizenship and
Sustainable Business Practices
page 63
302-4 Reduction of energy consumption Responsibility for the Environment page 64
303 Water
303-1 Water withdrawal by source Responsibility for the Environment page 62
Total consumption, page 64
Water usage / person, page 64
305 Emissions
305-1 Direct (Scope 1) GHG emissions Responsibility for the Environment Reported carbon footprint
page 64
306 Effluents and Waste
306-2 Waste by type and disposal method Responsibility for the Environment page 65
307 Non-compliance with environmental laws and regulations
307-1 Environmental compliance Corporate Citizenship and
Sustainable Business Practices
Database of applicable environmental laws and regulations
page 63

 
Social impacts

401 Employment
401-1 Employment New employee hires and employee turnover Applicable only in Finland
403 Occupational Health and Safety
403-2 Types of injury and rates of injury, occupational diseases, lost days and absenteeism, and number of work- related fatalities   Reported: Number of occupational incidents
page 58
404 Training and education
404-1 Average hours of training per year per employee Innovative and Developing People Average hours of training per year per employee
page 55
404-2 Programs for upgrading employee skills and transition assistance programs Innovative and Developing People page 55
405 Diversity and Equal Opportunity
405-1 Diversity of governance bodies and employees Personnel year 2018 page 56
419 Socioeconomic Compliance
419-1 Non-compliance with laws and regulations in the social and economic area GRI Content Index No violations
? Anticorruption, p. 62
? Conflicting minerals, p. 60
? Counterfeit materials, p. 60