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Sustainability Report 2019 Annual Report 2019 Strax STRAX AB ANNUAL REPORT 2017 SUSTAINABILITY REPORT 2019 ANNUAL REPORT 2019 STRAX 2 SUSTAINABILITY REPORT April 28, 2020 To our stakeholders: I am pleased to confirm that STRAX AB reaffirms its support of the Ten Principles of the United Nations Global Compact in the areas of Human Rights, Labour, Environment and Anti-Corruption. In this annual Communication on Progress, we describe our actions to continually improve the integration of the Global Compact and its principles into our business strategy, culture and daily operations. We also commit to sharing this information with our stakeholders using our primary channels of communication. Sincerely yours, Gudmundur Palmason CEO ANNUAL REPORT 2019 STRAX SUSTAINABILITY REPORT STRAX´s ambition is to conduct business in a sustainable manner in all areas possible. Sustainability is considered in profitability and risk analyses, business and product development, investment decisions and in our communication with stakeholders. Doing so will enable us to offer innovative products more competitively, while taking responsibility for the impact our business has on the world around us. Not only do we work to ensure high standards have gained a more well-defined ownership of corporate responsibility internally, we also and have become more established in day- engage our external partners to collaboratively to-day operations, which has improved the manage social and environmental risks and conditions for successful sustainability work. opportunities. A clear vision and shared values form the basis for our behavior and actions at Our Sustainability Report STRAX. Read more about our sustainability STRAX´s Sustainability Report presents an management on page 60-61 in the annual overview of what we are trying to achieve report. with our sustainable business strategy, how the sustainability work is conducted and our The past year progress so far. The report´s content reflects In 2019, we identified and implemented several the sustainability aspects in which our busi- initiatives to reduce the Group’s environmental ness has the greatest impact on people and 4 impact. Among other things, we have worked the environment. The sustainability report on; reducing the use of plastics in packaging, covers STRAX AB (publ), co. no. 556539-7709 the coordination and optimization of transpor- and all subsidiary companies in the Group tation of goods and the launch of environ- and has been prepared in accordance with mentally friendly mobile phone cases that are the regulations in the Annual Accounts Act (6 either biodegradable or compostable. We have chap. 10 §). As signatories of the 10 UN Global also increased the employees’ knowledge on Compact Principles within human rights, labor, how we as an organization work with environ- environment and anti-corruption, the sustaina- mental issues and discussed how the employ- bility report also comprises STRAX´s Commu- ees can reduce their negative environmental nication on Progress. impact in everyday life. During the year we formed STRAX Plus, a sus- tainability steering group with representatives from various functions within the organization. Through STRAX Plus, sustainability issues STRAX ANNUAL REPORT 2019 Our Values Honesty Respect Frugality Teamwork We aim always to show We always show the We use resources wisely; We realize and 5 respect by adhering to utmost respect for our effective planning and understand that as a facts, by fulfilling co-workers, the communication together team we’re stronger promises and admitting company, our with optimized processes than as individuals, so failures. We nurture competitors, our minimize costs across all we work together to honest communication customers and our areas of the business. achieve our common throughout the partners. goals. company. ANNUAL REPORT 2019 STRAX IMPACT IN OUR BUSINESS MODEL ees' health and safety, risks of corruption and STRAX is a market-leading global company to ensure a good work environment are other specializing in mobile accessories with sales areas that are important to STRAX. Sustaina- in more than 20 countries. Sales are made bility aspects are considered throughout the through all key channels ranging from telecom value chain, which covers everything from pro- operators, wholesale and consumer electronic duct development and procurement to pro- stores to lifestyle retailers or directly to consu- duction, logistics and professional marketing mers online. STRAX's brand portfolio includes support at the point of sales. More information both own brands and licensed brands that about STRAX´s business model is to be found make up 61 and 14 percent of sales, respective- on page 10-12 in the annual report. ly. STRAX also represents over 40 distributed brands, which account for 25 percent of sales. SUSTAINABLE SUPPLIER NETWORKS In addition to products, STRAX also offers As a global business with an extensive supp- value-added services and customer-specific lier base, it is challenging to develop a full solutions. understanding of our suppliers’ sustainability performance even with strict supply chain STRAX does not own any factories and all pro- processes in place. We place great emphasis duction is sourced from third party suppliers. on establishing good relationships with our 99 per cent of the production is based South suppliers and increased control and responsi- East Asia. The concentration of production in bility throughout the supply chain. one geographic area when sales are global results in environmental challenges due to Responsibility in the supply chain transportation. The development and produc- STRAX has adopted the Responsible Business tion of own products add further requirements Alliance (RBA)’s Code of Conduct as a gui- on the control of materials used in the pro- deline for standardizing the requirements and ducts and on third party factories’ adherence evaluation of suppliers. The code contains a set to sound business practices. of social, environmental and ethical standards for the electronics industry. We have also With over 150 suppliers worldwide, continual implemented STRAX´s Code of Conduct for improvements together with our partners Suppliers to ensure that all suppliers know what regarding sustainability issues are not only we expect of them. We expect all suppliers to crucial to ensure the rights and conditions of continually monitor their compliance with the the workers that make our products, but also standards set in the STRAX Supplier Code of to minimize the negative impact that the ma- Conduct. Should any breach of the regulations nufacturing have on the environment. Employ- be detected, the supplier must immediately 6 Material sustainability aspects "A value chain perspective makes it easier for STRAX to manage its sustainability impact and create in STRAX´s value chain the highest possible value." Product Procurement Production Logistics Value-added development The procurement Throughout the The logistics solutions and In product deve- process entails production process, include challenges services lopment, close coo- challenges related the environmental related to carbon It is important that peration between to corruption and impact of the pro- emissions from STRAX’s value-ad- the departments is briberies. The focus duction techniques transportation of ded solutions and essential to ensure is on ensuring that such as use of products as well as services align with product safety, STRAX require- chemicals, carbon waste from the pac- the company’s core product quality and ments are met and emissions and was- kaging used in the values and contri- product durability. to develop the te, product quality logistics process bute to the overall The focus is also on suppliers' ability to assurance as well and energy usage quality assurance. the use of chemi- improve the sus- as human rights, in warehouses. cals and materials, tainability aspects. fair labor practices packaging solutions STRAX requires and health and and recyclability. that all suppliers safety issues are comply with important aspects STRAX's and RBA's to consider. Code of Conduct. STRAX ANNUAL REPORT 2019 notify STRAX, so that we can ensure that effec- Business ethics tive and timely corrective actions are taken. Corruption and unethical behavior can occur both within the organization and indirectly Monitoring and improving suppliers through suppliers. STRAX’s procurement CSR performance process mainly takes place in South East Asia, At STRAX, we apply a self-assessment system, a market that offers good business opportuni- that over time corrects behavior and creates ties, but that is also exposed to material risks a sound culture of improvement and progress relating to areas such as corruption, bribery for the factories. Initial audits are conducted and fraud. at all new major suppliers. The self-assessment system is then monitored by regular visits STRAX’s Code of Conduct and Anti-Bribery to the factories and checked by audits. We Policy describe our commitment to maintain a have also implemented third party validation high standard of ethics when we do business of strategic suppliers’ CSR-performance to and our expectations on each employee and cross reference our internal controls. In 2019 a partner. STRAX has a zero-tolerance policy total of 2 process audits (9) were conducted. on corruption and fully support the require- Major suppliers account for over 90 percent ments of the UK Bribery Act as well as similar of Group purchases. In 2020 focus will be on legislation in all regions where we conduct conducting qms audits (quality management business. We have implemented policies and system). procedures to ensure we are prepared, to the extent possible, to prevent and deter corrupt STRAX’s intention is to support safe and fair practices across our business relationships. All working conditions and responsible mana- personnel shall be aware of their responsibili- gement of environmental and social issues in ties in respect to anti-corruption and bribery every part of the supply chain. In order to do and shall be empowered to act as a line of so, we support the establishment of a Corpo- defense in the identification of any corrupt rate Social Responsibility (CSR) management practices.
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