NOTES TO ACCOUNTING STATEMENT AND ACCOUNTING PRINCIPLES

The ESG data have been compiled to ensure a high degree of transparency between FOM Technologies and our stakeholders on issues related to Environmental, Social and Employee Conditions, and Governance and Business Ethics.

The year 2022 is our first year of disclosing ESG data. Our focus is to systematically evaluate and measure our impact and provide a clear picture of the company and the journey we are on. The goal is to increase the understanding of FOM Technologies’ positive and negative impact, as well as our current and potential impact. The ESG Initiative is based on internal data retrieved from our own databases, as well as data retrieved from XXX. The Scope 1 and 2 emissions are aligned with the methodology recommended by GHG Protocol. 

We have applied the accounting principles suggested in the Danish Business Authorities’ ESG KPI catalog.

Total energy consumption measured as megajoules has been calculated by summing total energy used in the calendar year in relation to company cars, electricity, and office heating/cooling. The following methodology has been used: ∑ (used fuel type * energy factor per type of fuel) + (used electricity (incl. renewable energy) (kWh)*3.6) + (used district heating / cooling incl. renewable energy sources (mJ))

Energy intensity has been calculated as total energy consumption (mJ) divided by revenue (DKK).

CO2-equivalent emissions are reported in scope 1 and 2 according to the definitions in the Green House Gas Protocol.

Scope 1 CO2e emissions:

Scope 1 direct emissions from controlled sources include company cars and office heating/cooling XXXXX. Road emissions from our cars have been calculated by summing kilometers driven in the calendar year multiplied by the applicable emission factor from the list provided by the Danish Business Authorities (LINK).

Scope 2 CO2e emissions:
Scope 2 indirect emissions have been calculated based on location and includes purchased electricity and xxxxx. The Co2 emissions have been calculated by multiplying total kwh used in the calendar year by the applicable emission factor from the list provided by the Danish Business authorities (LINK).

DO WE NEED SCOPE 3 HERE?

CO2 total / Revenue is a measure of CO2 intensity. As the business grows, CO2 will naturally grow as well. However, CO2 in comparison to revenue should not increase –rather the opposite due to economies of scale and actions to reduce CO2 emissions.

Employee sickness absence has been calculated as total hours of absence due to sickness divided by total working hours.

The sickness absence in both 2020 and 2021 has been affected by the global COVID-19 pandemic.

Employee turnover in the calendar year has been calculated as (voluntary + involuntary FTEs leaving / average number of FTEs) * 100.

Rated on a scale of 1-10 by all employees and managers within the reporting period of 2022. Calculated as an average of all scores.

Gender pay gap has been calculated as: (Median salary for all male employees / Median salary for female employees – 1) * 100.

CEO pay gap has been calculated as: CEO compensation compared to median salary of all employees.

Total FTEs have been calculated as the sum of full-time employees + full-time equivalents of temporary and part-time employees.

Total female employees divided by total employees at the end of the year.

Total females in Executive Management divided by total members of Executive Managers at the end of the year.

Total females in the Board of Directors divided by total members of the Board of Directors at the end of the year.