Trust-Based Customer Relationships and Secure Products

FOCUS AREA #2

Trust-Based  Customer Relationships and Secure Products

Bittium specializes in the development of reliable, secure communications and connectivity solutions as well as mobile data security solutions. We also offer our customers health care technology products and services. Sustainability and responsibility are evident throughout the whole life cycle of our products, from material choices to maintenance, confidentiality and data security.

Trust is one of our values and a cornerstone of our business. It is an essential element of our customer relationships, products, services and operating methods. The continuous improvement of our operations, innovative and agile product development, meeting the customer´s wishes and expectations as well as development in cooperation with our customers form the foundation of our sustainable business model and competitive advantage.

Observations Related to the Results of the Stakeholder Survey

• Both internal and external stakeholders consider the focus area to be important for Bittium. Bittium´s performance in taking this focus area into consideration in operations was characterized as fairly good. The focus area remains one of the company´s focus areas of sustainability.
• The internal responses highlight a concern regarding the challenges created by tight schedules in product development and customer projects.
• The responses from external stakeholders highlight the company´s strong performance in building trust and achieving success together with customers.

Alignment between the Focus Area and the UN´s Sustainable Development Goals

3. Ensure healthy lives and promote well-being for all at all ages.

3.4 By 2030, reduce by one third premature mortality from non-communicable diseases through prevention and treatment and promote mental health and well-being.

• Bittium´s medical technology products improve the quality of modern health care and are safe to use. 
• The products emphasize prevention, for example, in the context of serious complications caused by disruptions in cardiovascular function and brain function.
• Our product portfolio supports remote diagnostics, which improves efficiency and enables cost savings in the healthcare.

8. Promote sustained, inclusive andsustainable economic growth, full and productive employment and decent work for all.

8.7 Take immediate and effective measures to eradicate forced labor, end modern slavery and human trafficking and secure the prohibition and elimination of the worst forms of child labor, including recruitment and use of child soldiers, and by 2025 end child labor in all its forms.

8.8 Protect labor rights and promote safe and secure working environments for all workers, including migrant workers, in particular women migrants, and those in precarious employment.

We operate sustainably in our purchasing activities. We avoid the use of minerals from conflict zones and counterfeit materials. These issues are covered by our monitoring processes.

Customer Relationships Built on Trust

Taking into account our customers´ specific requirements pertaining to our sector and technology is the cornerstone of a trust-based customer relationship. As our operating environment changes, we face new expectations and requirements in our business. We must be in the vanguard of meeting these requirements. For example, to be able to respond to material inquiries within a tight schedule, we need to further develop our management of product information. Our challenge and area of development is to implement the new requirements throughout the supply chain.

Our operating methods are characterized by a strong focus on information security and ensuring the confidentiality of our customers´ data. Our products are designed to be secure, always taking our customers´ needs into account. Described in more detail under ‘Corporate citizenship and sustainable business practices´, our Code of Conduct is also an important element of our secure and responsible way of working with our customers and other stakeholders.

Systems and Standards

Standards define the industry´s common operating methods that make life easier for the authorities as well as the companies in the industry. Standardization also makes it easier to promote global exports.

For us, certified integrated management systems are an important tool with which we can improve our efficiency and reliability, transparency and customer satisfaction. More and more, our customers also expect our products and operating methods to be standardized and certified.

We had six certified systems in use at the end of 2019. All in all, we take into account approximately 400 different standards in our operations. We were awarded an ISO 27001 compliance certificate for our information security system in June 2019.

Secure Products

The working lives of our products are long, and our products are designed to last throughout their life cycle. In addition to the environmental impact of our products, we take into account the safety and security of our products, materials and components as well as compliance with product liability regulations in our target markets.

We apply the relevant industry standards in the design of the electrical safety and performance features of our products. Customer, country and market-specific requirements are also taken into account in our hardware development.

The products are tested, verified and approved as part of the R&D process by both internal and external auditors. For example, in Europe, our products are expected to carry the CE label and the related Declaration of Conformity (DoC).

We also audit our product development projects in accordance with the PSSL (Product Safety, Security and Liability) audit procedures as part of Bittium´s End Product Process (EPP) requirements. Our employees receive PSSL product liability training. In addition, we systematically assess product and life cycle risks as part of our product development processes.

Sustainable Purchasing

Bittium´s products contain a range of electronic and mechanical components. We ensure the sustainability of our procurement chain, for instance, in the form of material and component supplier requirements and material assessments. We conform to a sustainable way of working and require the same of our suppliers. Our partners must comply with Bittium´s Code of Conduct as well as the Bittium Supplier Manual and Bittium Supplier Requirements. We systematically develop our supplier relationship management and always review the CSR principles with our suppliers and partners.

We also audit our suppliers according to pre-defined criteria. Audits are carried out as a self-assessment based on the Bittium Supplier Manual or as an audit conducted by Bittium.

Employee training is also an important part of ensuring sustainable purchasing. Sustainable purchasing is part of the environmental training package that our employees are complete independently using learning materials provided by the company.

Conflict Minerals

The aim of conflict minerals laws and regulations is to stop funding conflicts through the minerals trade and, ultimately, to address human rights violations and environmental destruction in conflict areas.

We urge our suppliers to comply with the legislation on conflict minerals and the relevant recommended reporting practices. This way, we can ensure that the minerals used in Bittium products do not originate from conflict or risk zones.

In practice, the legislation requires sustainable purchasing and transparent supply chains with respect to certain minerals, such as tin, tantalum, wolfram and gold from conflict areas.

These minerals are typically used in household goods, and they are particularly common in electronics such as mobile devices and computers.

In 2019, one of Bittium´s suppliers reported a suspicion that the components supplied by them may have contained conflict minerals. The timely report prevented potential conflict minerals from being used in Bittium´s products.

Conflict Minerals Policy

Bittium products are composed of different electronic and mechanical components. Conflict minerals laws and encouraged reporting practices are verified with suppliers according to Bittium Material Declaration process. Bittium is committed to working towards ensuring that the minerals used in our products do not originate from the conflict-affected and high-risk areas, notably DRC or neighboring countries.

Avoiding Counterfeit Materials

Counterfeit materials are any materials in relation to which the origin, age, consistency, configuration, certification status or other feature is presented falsely and with misleading markings on the material, packaging or container.

Bittium is aware of the risks associated with counterfeit materials, both in the purchase of components and the use of reported ingredients for components.

Bittium is committed to taking the necessary steps to avoid using counterfeit materials in its products. Bittium has developed procedures for avoiding counterfeit materials. The procedures address different stages of the procurement process, starting from the selection of suppliers. Suppliers are required to report immediately on any known or suspected uses of counterfeit components or materials. Bittium provides training on the detection of counterfeit materials to its employees.

No counterfeit materials were found in Bittium´s products in 2019.