Reporting Basics and Principles

Scope of Reporting

This sustainability report, as a part of the annual report, is the fourth extensive report on the management and implementation of sustainability at Bittium. In 2021, Bittium has implemented actions on topics related to sustainability according to the sustainability program and developed its sustainability metrics, providing more information on the impacts. The sustainability program is based on the materiality analysis conducted in 2019, which aimed at gaining an understanding of stakeholders´ views on previously selected sustainability focus areas. With the materiality analysis, the company updated its sustainability focus areas and created a sustainability program for the years 2020–2022.

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 all four sustainability focus areas and a description of Bittium´s 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 2020 and 2021.

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, 2021. 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 2021 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 Malmi,
Vice President, Communications and Marketing
karoliina.malmi@bittium.com

GRI 102 General Disclosures

G4 Title Location Additional info/comments
Organization
102-1 Name of the organization Bittium in Brief page 8
102-2 Industries, brands, products, and services Bittium in Brief;
Bittium Products and Services
page 8
page 13
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 Bittium in Brief,
Corporate Governance
page 8
page 24
102-6 Markets served Bittium in Brief page 8
102-7 Scale of the organization Bittium 2021 page 4
102-8 Information on employees and other workers Innovative and Developing People page 62
102-9 Supply chain Suppliers and Partners;
Sustainable Purchasing
page 55
page 71
102-10 Significant changes to the organization and its supply chain Report by the Board of Directors;
Customer Relations Built on Trust
Organization: Changes in the Management Group, Sales
organization as part of
Product and Services
organizations
Page 100
Supply chain: Deliveries of
components transferred to
Europe and Finland
Page 71
102-11 Precautionary Principle or approach Risk management page 41
102-12 External initiatives   None
102-13 Membership of associations   Technology Industries of Finland
Strategy
102-14 Statement from CEO CEO´s Review pages 6-7
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;
Report by the Board of Directors

page 8

page 41

page 86

Ethics and Integrity
102-16 Values, principles, standards, and norms of behavior Corporate Citizenship and Sustainable Business Practices;
Value Creation Model
page 72
page 52-53
102-17 Mechanisms for advice and concerns about ethics Corporate Citizenship and Sustainable Business Practices page 72
pages 52-54

Governance
102-18 Governance structure Corporate Governance page 31
102-19 Delegating authority Corporate Governance;
Sustainability Management
page 31
page 54
102-20 Executive-level responsibility on economic, environmental and social topics Sustainability Management;
Stakeholder Organization and Risk Management
page 54
102-21 Consulting stakeholders on economic, environmental, and social topics Stakeholder Cooperation;
Corporate Citizenship and Sustainable Business Practices
page 55
page 72
102-22 Composition of the Board Corporate Governance page 31
102-23 Chairman of the Board Corporate Governance page 31
102-24 Election of the Board Corporate Governance page 31
102-31 Review of economic, environmental and social topics Sustainability Management page 54

102-32 Highest governance body´s role in sustainability reporting Sustainability Management page 54

102-35

Remuneration of Board of Directors
and Management


Corporate Governance;
Remuneration Report

page 30

www.bittium.com/investors/corporate-governance/salary-and-remuneration-report 

Stakeholder Engagement
102-40 List of stakeholder groups Stakeholder Cooperation page 55
102-42 Identifying and selecting stakeholders Stakeholder Cooperation page 55
102-43 Approach to stakeholder engagement Stakeholder Cooperation page 55
102-44 Key topics and concerns raised Stakeholder Cooperation Materiality analysis online:
annualreport2019.bittium.com/sustainability_report/
focus_areas_in_sustainability

page 55
Reporting Principles
102-45 Entities included in the consolidated financial statements Notes to the Consolidated Financial
Statements note 32. Related Party Disclosures
page 144
102-46 Defining report content and topic Boundaries Sustainability at Bittium in 2021;
Scope of reporting
page 57
page 80
102-47 List of material topics Sustainability Program 2020-2022 page 57
102-48 Restatements of information GRI Standard Content Index,
Environmental Sustainability
Page 81
The emission factors used have changed from the previous calculation due to a change in statistical methods.
102-49 Changes in reporting GRI Standard Content Index,
Environmental Sustainability
page 76
102-50 Reporting period Reporting Basics and Principles page 80
102-51 Date of most recent report GRI Standard Content Index March 19, 2021
102-52 Reporting cycle Reporting The report is published annually.
102-53 Contact point for questions regarding the report Reporting Karoliina Malmi,
Vice President,
Communications and Marketing
karoliina.malmi@bittium.com
Page 81
102-54 Claims of reporting in accordance with the GRI Standards Reporting Basics and Principles page 80
102-55 GRI content index GRI Standard Content index page 81
102-56 External assurance Reporting Basics and Principles page 80

 
GRI 103 Management Approachs

103-1 Explanation of the material topic and its Boundary GRI Standard Content Index;
Focus Areas in Sustainability
Calculation boundary: Bittium Corporation
page 81
page 60
103-2 The management approach and its components Sustainability Management;
Focus Areas in Sustainability
page 54
page 60
103-3 Evaluation of the management approach Sustainability Management page 54

 
TOPICAL CONTENT

Financial impacts

201 Economic performance
201-1 Direct economic value generated and distributed Financial influence pages 58-59
202-4 Financial assistance received from government Notes to the Consolidated Financial Statements;
4. Other Operating Income
page 117
205 Anticorruption
205-3 Confirmed incidents of corruption and actions taken Corporate Citizenship and
Sustainable Business Practices
No violations
page 72

 
Environmental Impacts

301 Materials
301-1 Materials used by weight or volume Environmental Sustainability Bittium does not use paper, carton, or metals to manufacture its products. Bittium reports material waste and the recycling rate associated with the use of materials at its operating locations.
pages 78-79

302 Energy
302-1 Energy consumption within the organization Environmental Sustainability pages 78-79
302-4 Reduction of energy consumption Environmental Sustainability pages 77-79
303 Water
303-1 Water withdrawal by source Environmental Sustainability;
Environmental Sustainability Indicators
Total and per-capita water
consumption figures are reported for Bittium´s operating locations. No water is used in the manufacture of products.
page 79
305 Emissions
305-1 Direct (Scope 1) GHG emissions Environmental Sustainability Reported carbon footprint.
pages 78-79
306 Effluents and Waste
306-2 Waste Environmental Sustainability pages 78-79
307 Non-compliance with environmental laws and regulations
307-1 Environmental compliance Environmental Sustainability Database of applicable environmental laws and regulations

 
Social impacts

403 Occupational Health and Safety
403-1 Occupational health and safety management system Innovative and Developing People;
Well-being and Occupational Safety
page 66
403-2 Hazard identification, risk assessment, and incident investigation Innovative and Developing People;
Well-being and Occupational Safety
Bittium continuously develops its occupational safety processes and risk management.
More information pertaining to subcontractors is provided in Bittium´s Supplier Manual:
www.bittium.com/about-bittium/suppliers/supplier-manual 
page 66
403-3 Occupational health services Innovative and Developing People;
Well-being and Occupational Safety
Occupational health services beyond the scope of the statutory requirements cover 99% of the personnel. The provision of occupational health services as part of compliance with the Act on Contractor´s Liability is part of Bittium´s subcontracting process.
page 66
403-4 Worker training on occupational health and safety Innovative and Developing People;
Well-being and Occupational Safety
page 66
403-5 Worker training on occupational health and safety Innovative and Developing People;
Well-being and Occupational Safety
All Bittium operating locations have appropriate
safety plans in place, and safety issues are
addressed in Bittium´s orientation training program.
Occupational health information is regularly
communicated to the personnel. Subcontractors are responsible for the occupational health and
occupational safety training of their employees
in accordance with their respective principles.
Bittium provides orientation training to subcontractors who work on Bittium´s premises. Subcontractors who work on the premises of Bittium´s customers receive orientation training from the customer in question. In other respects, subcontractors are responsible for training their employees.
page 66
403-6 Promotion of worker health Innovative and Developing People;
Well-being and Occupational Safety
page 66
403-7 Prevention and mitigation of occupational health and safety impacts directly linked by business relationships Customer Relationships
Built on Trust and Secure Products; Sustainable Purchasing

Innovative and Developing People;
Statement of Non-financial Information

More information pertaining to subcontractors is provided in Bittium´s Supplier Manual:
www.bittium.com/about-bittium/suppliers/supplier-manual
page 71
page 62
page 98
403-8 Workers covered by an occupational health and safety management system Innovative and Developing People;
Well-being and Occupational Safety
Bittium Employees.
page 67
403-9 Work-related injuries Innovative and Developing People;
Well-being and Occupational Safety
In 2021, there were 3 near misses and 3 occupational accidents reported at Bittium companies in
Finland. None of them resulted in incapacity for work or an obligation to pay compensation under the Accidents at Work and Occupational Diseases Act..
page 66
403-10 Work-related ill health Innovative and Developing People;
Well-being and Occupational Safety
The sickness-related absence rate was 3% in 2021 (calculated from the occupational health service provider´s data, day/employee vs. theoretical regular working hours). Bittium does not have access to this data with regard to workers from staffing services.
page 66
404 Training and education
404-1 Average hours of training per year per employee Innovative and Developing People Reported hours of training per employee
pages 62, 67
404-2 Programs for upgrading employee skills and transition assistance programs Innovative and Developing People page 65
405 Diversity and Equal Opportunity
405-1 Diversity of governance bodies and employees Diversity Principles of the Board of Directors
Innovative and Developing People
page 32
page 66
419 Socioeconomic Compliance
419-1 Non-compliance with laws and regulations in the social and economic area Sustainable Purchasing, Statement of Non-financial Information No violations
• Anticorruption, pages 54, 72, 99
• Conflicting minerals, page 71
• Counterfeit materials, page 71