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Itera

Environmental & Social Information Apr 28, 2023

3639_10-k_2023-04-28_d7cc7c68-c226-4b88-ad96-e678c4a16b71.pdf

Environmental & Social Information

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ANNUAL REPORT SUSTAINABILITY

Passionate people and growth beyond borders

"Sustainability is business. Every business has external expectations from society and stakeholders, but a true commitment to sustainability must be internally driven. Itera understands how to merge sustainability with clear, operational goals going forward."

Christopher Hjort senior project advisor Itera, Oslo

How we deliver sustainable business

Itera aims to be recognised as the specialist in sustainable digital transformation. Our starting point for achieving this position is the best it can be. We have made sustainability a driver for our services and solutions, we have dedicated employees who want to help make a difference – and we have perfect partners who will accelerate business opportunities into a greener future.

2030Vision, the World Economic Forum's multi-stakeholder community of tech companies and their partners, has shown that 70% of the 169 targets of the UN Sustainable Development Goals can be directly supported by digital technologies. To achieve this, businesses, governments, organisations and experts will have to cooperate closely. Itera will be part of this opportunity.

Itera continues to have a strong position in Energy, Banking & Finance and the public sector. We are contributing to the green transition, we are part of the fight against corruption, money laundering and terrorist financing, and we use technology to develop solutions to create digital communities that include rather than exclude. It is all about being innovative and focused on what serves the goal.

We want to make a difference, which is why we have also got involved at the government level in Ukraine. Itera will help keep

the economy running - while we wait for the day when we can contribute to rebuilding our brave colleagues' country. We integrate sustainability into our end-to-end services. We help our customers to realise their strategies and innovative business models through technology and communication. We think it is important that both we and our customers demonstrate what we are doing to bring about a sustainable future. We even took the first step as early as 2000, when we became environmentally certified. Then it was a matter of curiosity, today it is a natural, integral part of our ambitions, strategies and business.

Our strategy is to take a comprehensive approach to sustainability and business. We have therefore integrated our sustainability work into the group's business strategy. This means that we will no longer have a separate sustainability strategy – for us it is natural that sustainability consists of taking responsibility for society's common challenges and at the same time for us to use this as a catalyst for strengthening our business. For us, it is simply a question of always striving to achieve the group's vision of making a difference.

digital transformation

Speeding up sustainable

Itera has the expertise, technologies and commitment needed to make a positive difference. Digitalisation and technology are key to the opportunities of the future. Together with our strategic partners, we accelerate sustainable digital transformation.

70%

of the 169 UN Sustainability Goals targets can be directly supported by digital technologies.

Our sustainable value creation

By applying our expertise in digital technology, business and design, we are transforming our customers' businesses and helping them to realise their ambitions for a sustainable future.

Our vision and strategy

Vision Make A Difference

Strategic position Specialist in sustainable digital transformation

UN SDGs prioritised by Itera

5: Gender equality

9: Industry, innovation and infrastructure

11: Sustainable cities and communities

12: Responsible consumption and production

Our strengths

Digital expertise Technology, business and design applied correctly contribute to sustainability

Commitment Employees motivated to make a difference

Customer portfolio We have an impact on many of the largest companies in the Nordics

We integrate sustainability into our deliveries

We establish innovative and futureoriented partnerships that strengthen and develop our sustainable solutions

Our main activities

Realise sustainable innovation Identify, sell and deliver projects

Test and learn methods

Sustainability in operations Technology and digitalisation are prerequisites for the green transition. Through our services, we contribute to sustainable solutions

Collaborators We seek partnerships that strengthen our sustainable business

Our value creation

Investors Long-term and ethical investments

Customers Attractive partners with clear standpoints and contributions to sustainability

Employees Projects with purpose at a valuebased company

Society A serious business and responsible employer

Ukraine

Itera takes a comprehensive approach to how we contribute to sustainable value creation. Our foundation is formed of our vision and strategy, our strengths, and our core capabilities. When these are combined, value is created for our customers, our employees, our owners, and society.

We are inspired by the process model for ensuring comprehensive reporting and facilitating the use of reported data that is recommended by organisations including the Oslo Stock Exchange (OSE). We are on the right path, and we have been certified as a Transparency Partner by NASDAQ since 2022. This serves as a confirmation of Itera's commitment to sustainability and transparency, including its commitment to ensuring human rights, looking after the environment and operating responsible business activities. Itera follows the requirements of the Norwegian Transparency Act and has introduced a system for due diligence assessments.

See ESG-index on page 07.

Itera complies with several imposed and self-imposed requirements. EcoVadis, She Index, Euronext, Nasdaq, UN Global Compact and Eco Lighthouse provide important input and inspiration for how we can optimise our sustainability performance.

We are open about what we do

Itera is committed to reporting its sustainability work efforts in a transparent way. This is also in line with the growing requirements to which listed companies are subject. Itera's objective is to have a reporting structure that we use to regularly report on our targets, where we are in relation to them, and what measures we have taken for the KPIs we have prioritised.

Reporting process

Communication

  • Quality of the informatioz
  • Format of the presentatioz
  • Making the ESG information accessible

Materiality analysis

  • Identifying stakeholders and mapping their interest
  • Identifying the relevant themes for the compan
  • Prioritisation

Itera's certificates and obligations

1. 2. 3.

Operational management

  • Include material risks and opportunities in operational managemenÛ
  • Define targets and indicators for material topic
  • Opt for robust internal ESG data collection and management processes

To have a holistic perspective on how Itera can contribute to the development of sustainable solutions, we need to engage in dialogue with our most important stakeholders. We affect their day-to-day activities – and they affect ours. In order to gain insight into what our stakeholders expect and reuire of us, we have updated our stakeholder and materiality analysis'

ur stakeholder and materiality analysis identifies which stakeholders are important to us and what they expect from Itera. This information forms the basis for how Itera prioritises its efforts on areas that will produce the greatest benefit for society and the company'

The materiality analysis confirmed that our primary stakeholders are our customers, our employees, our investors/owners and our partners. In our revised stakeholder and materiality analysis, we have also prioritised authorities on the basis of our cooperation and dialogue with the Ukrainian authorities'

The following summary is an extract from our stakeholder and materiality analysis

  • ur customers will recognise us as an attractive provider if we display clear targets, expertise and an active commitment to digital, sustainable, value-adding solutions. We are a realisation partner, and together with our customers we can take a sustainable lead&
  • ur owners and investors increasingly recognise the value of businesses operating ethically and sustainably. Sustainability is smart business, and investors regard this as a reuirement for good investment returns&
  • ur employees are our most important resource. They are committed to contributing to sustainable growth and want a meaningful working day. Through its commitment to sustainability, Itera will seek to ensure that we are an attractive employer for skilled people who want to make a difference&
  • ur collaboration partners want to operate sustainably. We often rely on one another to meet our customers' needs. This means that we need to have the same responsible attitude to what represent the most sustainable and value-adding solutions – for the benefit of our customers and our customers' customers'

UO PUOPSE

The materiality analysis clearly identifies the targets where our business and our employees can make a credible contribution to sustainable development. Itera believes that technology and digitalisation are helping to create sustainable societies. Big data, cloud solutions, the internet of things and other technologies, in addition to open arenas for democratic processes, are the basis for our shared resources to be managed responsibly. Itera has formulated and implemented four purposes

  • We realise sustainable innovatio]
  • We integrate sustainability into our deliverieC
  • We are sustainable in our day-to-day operationC
  • We collaborate to achieve our goals

UN SDG´ POIOITISED BY ITEOA

The four UN Sustainable Development Goals (UN SDGs) that have been prioritised by Itera serve as a guide for our organisation. ver the next few years, Itera will focus on innovation and developing measures and services that are in line with these overarching ambitions.

Our holistic approach to operating a responsible business

On the basis of the stakeholder and materiality analysis, we have prioritised the following topiÍs:ì

  • Deliver, often with partners, complete, digital, sustainable solutionsì
  • Create a safe and responsible return on investmentì
  • Ensure that all employees are treated eually and feel included in an increasingly diverse culture. ì
  • Focus on employees people firstì
  • Use our expertise to develop and ensure sustainable societies

5: Gender equality End all forms of discrimination against all women and girls everywhere .

Business as a force of good

The UN's 17 Sustainable Development Goals are the world's shared blueprint for eradicating poverty, fighting ineuality, and stopping climate change by 2030.

Itera has signed the 10 principles for sustainable business in the UN Global Compact, the world s largest corporate sustainability initiative. We report annually through Communication on Progress (CP) on our efforts for a more sustainable business.

We are committed to operating our business activities in such a way that we avoid damaging the external environment. We support employee engagement, together we create an inclusive and diverse corporate culture where everyone is valued for who they are.

ur business must be responsible at all levels. Human rights, decent working conditions and anti-corruption are important areas of effort.

Itera shall give all its employees eual opportunities, regardless of their gender. We shall be characterised by a safe and inclusive culture where harassment and discrimination are not accepted and where employees are remunerated eually based on their skills, not their gender.

Itera is an advisor to our customers on building sustainable value chains.

Itera develops sustainable, smart concepts. Smart cities, smart mobility and smart energy are focus areas.

Itera rewards internal conduct that contributes to responsible consumption. Itera sets reuirements to ensure sustainable procurement activities.

9: Industry, innovation and infrastructure Build resilient infrastructure, promote inclusive and sustainable industrialisation and foster innovation .

11: Sustainable cities and communities "Make cities and human

settlements inclusive, safe, resilient and sustainable .

12: Responsible consumption and production

Ensure sustainable consumption and production patterns .

Sustainable initiatives and activities 2022

Itera has a constant focus on improvement, and sustainability is an important driver for responsible business. In this section, we present our prioritised initiatives, our current progress and our targets.

Environmental Read Social Read Governance Read
Climate risks p. 8 Accidents at work p. 10 Anti-corruption p. 12
Climate-related disclosures p. 8,9,13 Covid-19 and hybrid solutions p. 10 Certifications p. 8-14
Direct emissions p. 8 Diversity and equal opportunities p. 10,11 Code of Conduct p. 12,13
Indirect emissions p. 8 Gender balance p. 10,11 Corporate governance p. 12
Transportation and mobility p. 8 Health and safety p. 10 Ethical guidelines p. 12
Waste management p. 9 Human rights p. 10,11 Materiality analysis p. 4
6
Procurement p. 9 Labour rights p. 10,11 Reporting standards p. 4,12
Hardware recycling p. 9 Absence due to sickness p. 10 Risk management p. 8, 12
Environmental management system p. 8 Supplier monitoring p. 9,12 Stakeholder engagement p. 4,6,10
Climate initiatives p. 8,9 Employee engagement p. 10 Sustainability strategy p. 4
6
Attrition p. 10 UN Sustainability Goals p. 4,6
HSE framework p. 10 Whistleblowing p. 12,13
Transparency Act p. 8, 12
EU Taxonomy p. 12

E S G

Itera uses the ESG standard to report in the Environmental, Social and Governance areas. This is a recognised way of documenting the company s sustainability efforts.

p. 12,13
p. 12
p. 4
6
p. 4
6
p. 4,6
p. 12,13
p. 8, 12

Itera strongly believes that use of disruptive technologies and digitalisation will be important to mitigate climate changes. However, we also understand the importance of minimising the negative impact on the environment from our own operations. As a consultancy company within the Information and Communications Technology (ICT) sector, our main impact is related to our people and office locations. In general, our emission impact in 2022 is less than previous years as the pandemic restricted business travel and the use of our offices for periods during the year. Our climate impact is divided in categories scope 1 to 3, according to GHG protocol.

SCOPE 1: DIRECT EMISSION

Scope 1 - Emission includes all Direct Emissions from the activities of an organisation. For Itera this means emission from company cars. Itera currently have two company cars (CEO and COO), which are both electrical. Scope 1 emission is 0,9 tCo2e or > 0,01 tCo2e/per FTE. Emission from scope 1 makes up only a fraction of our total emissions. Itera does not plan to have more company cars and we see a small decrease in scope 1 emissions from prior year.

SCOPE 2: INDIRECT EMISSION

Scope 2 – Indirect Emissions from electricity purchased and used by the organisation. For Itera this means emissions from our office locations for heating, cooling, and energy usage of electronic devices. Scope 2 emission is 248,0 tCo2e or 0,36 tCo2e/per FTE. Emission from scope 2 is the main part of our total emissions. The war in Ukraine led to opening of several new offices. It also caused that our second largest office, Kyiv office, was very little utilised. This affects the total energy usage from our offices, which is largely reduced from last year. However, we expect this to increase again when we return to a normal situation.

Measures:

    1. Limit paper usage
    1. Encourage use of public transport
    1. Sort waste electronic equipment (return scheme).

[ENVIRONMENTAL] E =

Itera is a certified Eco-Lighthouse company. This is a natural extension to Itera's history: In 2001, Itera became the first Norwegian communication and technology company to obtain certification in accordance with the environmental standard ISO 14001.

Climate impact

SCOPE 3: OTHER INDIRECT EMISSION

Other indirect climate emission is voluntary to include. This is emission from upstream and downstream activities that we do not directly control. Scope 3 emission will be double counted in the larger context as our scope 3 emission will be other companies' scope 1 and 2 emissions. Even though we do not directly control this emission, we have great possibilities to reduce it. For Itera, scope 3 consists of indirect emissions from business travel (car mileage and air travel), waste management, energy usage from third party data center locations, production and usage of mobile phones and ITequipment. Scope 3 emission is 216,4 tCO2e or 0,32 tCO2e/per FTE. Emission from scope 3 is a large part of our total emissions. Business travel increased a lot this year as we went from covid-19 restriction and lockdown, back to a more normalised situation for all our locations, expect for Ukraine. Hence, emissions from business travel had a large increase, which resulted in a large increase in scope 3 emissions. However, Itera discontinued its data center business in the first quarter of 2022, which had a positive effect on the scope 3 emissions.

Please note that Itera is likely to have more indirect emission that is outside the scope of this reporting.

*Scope 3 emission can also include several more factors not included here. **Scope 3 emission include calculated estimates

TRANSPORTATION

GROUP AIR TRAVEL * 2020 2021 2022 Target 2023
No. of flights in the 135 98 239 250
Nordic region
No. of flights within 106 100 249 250
Europe
No. of flights in the rest 8 $\Omega$ 4 5
of the world
NORWAY AIR TRAVEL* 2020 2021 2022 Target 2023
No. of flights in the 134 87 228 230
Nordic region
No. of flights within 12 20 69 70
Europe
No. of flights in the rest 6 0 2 $\overline{2}$
of the world

Large increase in business travel because we went from covid-19 restriction and lockdown to a normal situation. After a few years with very little travel, there was a need for teams across locations to meet physically.

CAR TRAVEL 2020 2021 2022
Total car milage (in km) 54 665 61864 76021
Car milage from electric cars (in km) 32 000 41 499 37321
Fossil fuel consumption (in liters) 1329 547 1381
Company cars

Only the CEO and COO of Itera have company cars, both of which are electric vehicles. Itera does not plan to offer more company cars.

Climate risk is handled by the risk management governance structure that also handles other risks Itera are exposed to.

The TCFD-framework mentions three main types of risk associated with climate risk. These are physical risk, transition risk and liability risk. Physical risk: Risk from climate and weather-related events, e.g. heat wave, drought, flood, storm etc. Such events can potentially lead to large financial losses and reduce the value of assets and the creditworthiness of customers.

Transition risk: Risk resulting from the transition to a low-carbon society. Changes in politics, technology and societal sentiment can lead to changes in the value of many assets. An example is increased carbon pricing or a marked decrease in demand for goods and services with a clear negative climate impact. At the same time, the transition to a low-emissions economy also entails opportunities.

Liability risk: Claims for compensation related to decisions or lack of decisions that can in one way or another be linked to climate policy or climate change

Climate risks for the Itera Group is assessed to be low. This is because we deliver services that are not directly dependent on natural resources or location. We are experts in delivering services to customers through hybrid solutions and across business locations. What is required are people, IT equipment, internet coverage and infrastructure.

Our most important input factor for the delivery of services is our people. For Itera, the green shift will be opportunity-based, since the transition is dependent on new technology and digitisation of industry and businesses. This is where we have our core competence. Hence, transition risk is positive for Itera.

ENVIRONMENT POLICY

Our ambition is to minimise climate impact from our operations. We are committed to operating our business activities in such a way that we avoid damaging the external environment. At Itera, we have a pronounced environmental policy that is reflected across our entire organisation.

Climate risk:

*Only for headquarters in Oslo

*roundtrip = 1

from last
vear
896 $-11%$ Less usage of company cars
247990 $-24%$ War in Ukraine meant that Ukraine
less used.
6370 $-397%$ Data center business sunset withi
144 463 60% No covid restrictions meant norma
travel compared to lockdown last
9349 46 % No covid restriction, more office u
offices abroad without waste man
system in place
3582 63 % No covid restrictions meant norma
travel compared to lockdown last
52 660 16 % Growth in number of employees.

*Scope 2 emission include calculated estimates

Environment Metric 2021 2022 Target
2023
Environment management system* YES/NO YES YES YES
Offices locations size Sqm 5871 7355 7000
Water consumption (m3) m 3 1791 $<$ 2000
Sorting rate (waste management) % 31% 21 % 30%
Total climate impact tCo2e 449.3 465.3 $<$ 500
Scope 1: Direct GHG emissions. tCo2e 1,0 0,9 1
Scope 2: Indirect Energy GHG emissions. tCo2e 308,2 248,0 < 350
Scope 3: Other indirect GHG emissions. tCo2e 140.2 216.4 $<$ 150
Total climate impact (per FTE) tCo2e per FTE 0.78 0.68 <1
Scope 1: Direct GHG emissions. tCo2e per FTE 0,00 0.00 < 0
Scope 2: Indirect Energy GHG emissions. tCo2e per FTE 0.53 0.36 < 0.5
Scope 3: Other indirect GHG emissions. tCo2e per FTE 0,24 0,32 <0,3

PROCUREMENT

We are focusing on sustainable products. As an example, all our cleaning products, coffee and office supplies are environmentally certified. As part of the Supplier monitoring from Transparency Act, we ask our suppliers if they have environmental policies in place. Also, the Procurement Management Policy is in place to ensure that Itera chooses environmentally friendly suppliers.

BREEAM-NOR

The Group is headquartered in a BREEAM-NOR certified building. BREEAM is the world's longest established (1990) and Europe's leading environmental assessment tool for buildings, and a BREEAM certification is based on a building's documented environmental performance across nine sustainability categories: management, health and well-being, energy, transport, water, materials, waste, land use and ecology, and pollution. The office part of the building has received an assessment rating of "Very good".

NEW HEADQUARTERS

In the summer of 2023, Itera will move its headquarters to a more central location in Oslo. Even though moving location is not considered to be environmentally friendly in general, we will have some positive side effects from this. Firstly, the recycle rate of inventory will be north of 95%, in a combination of resale and reuse. The new office space is reduced to a more fitted and place-efficient size, which should have a positive impact on energy consumption. The new location is more accessible with public transport and less accessible with private cars.

WastE management

Norway 2021 2022 Target 2023
Residual waste 5028 kg 7 736 kg 7500 kg
Recycled waste 3 119 kg 4051 kg 5000 kg
Sorting rate % 38% 34 % 40 %
Group 2021 2022 Target 2023
Residual waste 10 058 kg 18792 14 000 kg
kg
Recycled waste 4493 kg 4929 kg 6 000 kg
Sorting rate % 31% 21 % 30%

Sorting rate is 21% for the Group and 34% for the Norwegian part of the Group.

Some locations do not have a recycling program in place yet. In our headquarters in Oslo, the sorting rate has been above 40% in the last years. The building facilitator has a long-term plan of increasing the sorting rate to 65%. The decrease of sorting rate from last year is due to opening more locations abroad which do not have waste management in place yet. We aim to implement waste management in all locations and thus increase the sorting rate for the Group. However, waste management for a district is managed by the municipality or authorities, and it is not supported in all our locations, as of now. The large increase in total waste from last year is related to covid-19 effects and lockdown effects.

Recycled waste can be divided into categories: food waste, paper and cardboard, electronics, glass, and metal.

HARDWARE RECYCLING

Itera has a target of recycling all computer equipment for which we no longer have a use. Used screens, keyboards and mice are given to employees free of charge. PCs that are no longer being used by Itera are formatted and prepared with a Windows operating system for a new life in low-income families. Itera has a return scheme agreement with Foxway (previously called Alternativ Data). On their website, they estimate a Co2 saving equivalent of driving from Norway to Spain for every re-used PC. According to Foxway customer portal, Itera has recycled 32 units in 2022, while 208 units have been delivered for resale and recycling. The recycling of 32 units in 2022 equals a Co2 saving of three tons. Old and broken equipment that cannot be reused is disposed of as hazardous waste.

MOBILE TELEPHONE SCHEME

Itera encourages its employees to use their mobile phones as long as possible. One of the measures is offering a financial support for new mobile purchases that increases in line with how long the employee wait to upgrade to a newer model.

DIGITAL SIGNING OF CONTRACTS

To make life easier for our customers and also to contribute to sustainability, Itera has introduced a solution that allows contracts to be signed digitally. Instead of having to print, sign, scan and return contracts, customers can receive their documents by email and then choose whether to sign them on their mobile, tablet or PC.

INITIATIVES RELATED TO SUSTAINABILITY

Number of employees

Itera Group
$\sim$
.
$\sim$ $\sim$ $\sim$ $\sim$ $\sim$ $\sim$ $\sim$ $\sim$

HEALTH, SAFETY AND ENVIRONMENT (HSE)

The work environment is considered to be of the highest standard across all locations. Employee engagement is measured regularly. Results and feedback from these surveys are very good, and fully support our strategic direction to Grow People and be the People First company. Absence due to sickness in 2022 was 2.9%, which is low and satisfactory. No accidents or injuries occurred during the year. Seven Ukrainian employees are currently drafted to the armed forces.

Itera will be vulnerable to poor employee engagement, frequent and/or prolonged sick leave, fire or evacuation or unwanted high turnover. Our employees work in a safe and appealing environment where digital and physical collaboration among people is at the core of our work pattern. By focusing on systematic HSE work with policies, processes, system support and roles and responsibilities, this results in better health and well-being, reduced sick leave and greater commitment and satisfaction among employees in a safe sustainable environment. All-in all an attractive workplace.

The HSE targets we have set ourselves are part of our systematic health, safety and working environment work. When it comes to working environment, health and safety, the main focus is on promoting employee well-being, avoiding incidents and strains that can lead to health damage, and stimulating health-promoting activity.

We have set the following HSE targets:

    1. Promote employee engagement
    1. Maintain a low sick leave rate

WORKING ENVIRONMENT

EMPLOYEE ENGAGEMENT

Itera does not measure employee satisfaction but employee engagement, as we are of the view that this is a strong indicator of employee wellbeing. The engagement score (10 is maximum) is an overall indicator of how engaged our employees are. Employee engagement is measured every two weeks through a digital survey consisting of around 10 questions every time.

Each employee gives his/her score and feedback on a wide range of relevant topics, such as his/her work-life balance, professional development, workload, and adherence to Itera's values. Employees are given the opportunity to share their opinion on which areas and measures should be prioritised in order to improve the results. Based on the input from our employees, different levels of analysis are made and different actions to improve engagement activated.

Employee engagement: Measures and targets*

Unit 2021 2022 Target 2023
Itera Group 8.5 8.5 8.0
Itera Norway 8.3 8.2 8.0
Itera ASA 8.8 8.5 8.0
Itera Offshoring services 8,6 8.8 8.0
Itera Aps 8,5 8.9 8.0
Compendia 7,9 7.8 8.0

[SOCIAL] S =

The overall average engagement score of 8.5 in 2022 surveys shows that employees find Itera a good place to work. This is stable at the same level as in 2021. In 2022, Itera included a Well-being index because Itera believes that well-being starts at work with prevention and understanding. By getting a holistic view of the well-being of employees, Itera can take action to create a positive environment. The overall Health and Well-being score of 8.6 means that Itera is in the Top 25% of the Technology industry when it comes to health and well-being.

Number of employees at year end 2022

Sick leave

Unit 2021 2022 Target 2023
Itera Group 2.6% 2.5% 3.0%
Itera Norway 3.4% 3.1% 3.0%
Itera ASA 4.7% 2.3% 3.0%
Itera Offshoring services 1.8% 1.8% 3.0%
Itera Aps 2.3% 2.3% 3.0%
Compendia 5.1% 5.1% 3.0%

Low employee turnover and sick leave are indicators of a healthy workplace and are KPIs Itera follows closely. Employee turnover in 2022 were 15.9%, compared to 15,7% in the prior year. This is at a normal level for our industry compared to our peers. Sick leave for the group was 2.5%. This is low and hence at a healthy level. Itera's flexibility on workplace and work hours has contributed to lower short-term sickness levels.

There were no work-related injuries in Itera in 2022.

Diversity and inclusion

Peakon Equality Score -

People from all backgrounds are treated fairly at Itera

Itera strongly believes diversity and inclusion make a difference to Itera, our customers and society.

In Itera, we share a commitment to make a positive difference in the world. We believe all our individual uniqueness represents the driving force in our efforts to grow our customers and our employees. We believe a diverse culture is a sustainable culture. As a company, Itera cultivates a work environment where everyone feels valued and included.

Through our diversity and inclusion framework, Itera focuses on areas

  • ensure representation of diverse talent"
  • enable equality of opportunity through fairness and transparencK
  • tackle microaggressions and promote multivariate diversity

The diversity and inclusion framework will help us to make a positive difference in developing and hiring talented people from groups that at the moment are underrepresented, as well as nurturing a culture where everyone at Itera feels welcome and respected.

Greater diversity is correlated with a significantly higher likelihood of outperformance. Furthermore, fostering a diverse and inclusive culture is a critical success factor it enables individuals both to shine in their own right and to pull together as ONE Itera.

Definitions D&I

Diversity refers to the traits and characteristics that make people unique. These can be along the dimensions of race, ethnicity, gender, sexual orientation, socio-economic status, age, physical abilities, religious beliefs, political beliefs, or other ideologies.

Inclusion refers to the behaviours, practices and norms that ensure that people are given fair and equal opportunities and feel welcome in the workplace.

SOCIAL POLICY

In Itera, the employees constitute our core competency. Hence, we strive to put people first and to have the best possible work environment for our employees to develop and grow with the company. We do this by tracking employee engagement, following HSE framework and to promote competence development.

Together, we create an inclusive and diverse corporate culture where everyone is valued for who they are.

Grow people develop, retain, and attract top and diverse talent

Group ESG metrics Social

Social 2021 2022 Targets 2023
Headcount (number of employees) 639 698 968
FTE 611 684 960
Percentage of female employees 30% 32 % 35%
Percentage of female employees - Entry and mid-
level position
30% 30 % 40 %
Percentage of female employees - Senior and
executive level position
25 % 27% 40 %
Management diversity (percentage of woman on the
upper management)
22 % 40 % 40 %
Board Diversity (percentage of woman on the board) 50% 50% 50%
Sickness % 2.6 % 2.5% 3.0%
Employee engagement (peakon score) 8,5 8,5 8,0
Organisational fit (Peakon score) 9,1 8,8 8,5
Attrition rate % (employee turnover) 15,8%? 15.9% 17%
Injury (number of work-related accidents) $\Omega$ $\Omega$ 0
Certifications, exams, and courses completed 146 278 300

(*Max score: 10)

(*Max score: 10)

Segment Organisational Fit -
Equality 2021
Organisational Fit -
Equality 2022
Organisational Fit -
Equality 2023
Target
Itera Group 9.2 9.2 8.5
Itera Norway 9.2 9.1 8.5
Itera ASA 9.4 8.9 8.5
Itera Offshoring services 9,2 9.3 8.5
Itera Aps 9.7 9.7 8.5
Compendia 9,0 8.5 8.5

(*Max score: 10)

*Units with less than 2 employees are not included

*Units with less than 2 employees are not included

Partnerships and initiatives

ODA

Our partnership with ODA shows our focus on contributing to increase the number of women in technology.

Itera's CEO Arne Mjøs was appointed one of the three finalists to ODA Man of the Year both in 2021 and in 2022.

SHE

The SHE Index is a catalyst for encouraging stakeholders to focus on diversity and inclusion in leadership and workforce, equal compensation, and work life balance. The Index consists of 6 categories focused on different aspects of gender equality.

In 2022, Itera was ranked number 47 on the She Index.

ITERA EMPLOYEE FOUNDATION

We all have a big heart for Ukraine and hope the war will end soon. Several of our colleagues are involved in fighting to liberate Ukraine, and most have family and friends who actively participate in the liberation. In Norway, we are far behind the front line, but nevertheless make a significant effort to help those who are fleeing the war, also with direct support to various organisations and the Ukrainian Armed Forces.

Itera Employee Foundation was an initiative to contribute to Ukraine, where employees were able to give work hours of their salary to the foundation. Itera also matched the total amount given by employees. The funds were spent on vehicles and surveillance drones for the Ukrainian frontline. Spendings were strictly supervised by a committee.

Recruitment and competence

Summer internship: An important contribution

To contribute to recruitment in a sector where the demand for employees exceeds the supply, Itera runs an annual summer internship program targeted at students at major universities. This program is a strategic tool intended to help Itera to build relationships with the most talented students at an early stage in their education, with some students offered positions at Itera as early as after the second or third year of their master's program. The students are tasked with solving strategic problems in a variety of eightweek customer projects, each led by one of Itera's experienced project managers.

Summer internships

2020: 31 students 2021 : 27 students 2022: 0 students* Target 2023: 12 students

*Due to the war in Ukraine, the summer internship program in 2022 was postponed one year.

19 graduates onboarded Itera's "Boost" program

We also continued to increase the number of graduates we accept on to our graduate program, "named Boost", and in September 2021 we welcomed 19 talented new colleagues to this program. Graduates specialise variously in development, business consulting, design and test management for what will be a great start to their careers, both professionally and socially due to their involvement in exciting customer projects.

Partnership for increased knowledge about digitisation and sustainability Itera is a partner in «GoForIT», which is a collaboration between the IT industry and academia for knowledge development at the intersection between digitalisation and sustainability.

Certifications

In 2022, 278 certifications, exams and courses were completed by our employees.

Level up

Competence Development is one of the most important activities in Itera. It is critical for us to be able to develop our employees and build the competences needed now and in the future. "Level up" is our internal competence development network, where internal events are held regularly, both physically and digitally. All our employees are free to join these events. During 2022, Itera conducted 49 events through Level Up. Some of these events were related to sustainability, with the aim to increase the sustainability competence of our employees.

WOMEN AS A PROPORTION OF ITERA EMPLOYEES

Gender balance data 2021 2022 Targets 2023
Percentage of female employees 30% 32% 35%
Percentage of female employees -
Entry and mid-level position
30 % 30% 35%
Percentage of female employees -
Senior and executive level position
25 % 27% 35%
Percentage of female employees -
Undefined position*
68%
Management diversity (percentage of
women in the upper management)
22% 40 % 40%
Board Diversity (percentage of women
in the board)
50 % 50% 50 %

32% of the Group's employees in 2022 were women as compared to 30% in 2021. In entry and mid-level positions there were 30% women in 2022, which is the same as the prior year, while in senior positions percentage of women increased to 27% from 25% in the prior year. The Group's executive management team consisted of 3 men and two women in 2022.

The shareholder-elected Board members are two women and two men, while the employee-elected representatives and observers are two women and two men.

Unit* 2021 2022 Target 2023
Itera Group 30% 32% 35%
Itera Norway 25% 27% 30%
Itera ASA 71% 74% 50%
Itera Offshoring services 30% 31% 35%
Itera Aps 15% 12% 25%
Compendia 53% 51% 50%

The table above shows gender balance on a company level. The Group's ambition is to have diversity across all locations and in all legal entities. At Group level, Itera has 32% women, with a target of reaching 35% in 2023. The largest spread from our targets is in Itera Aps in Denmark with 12% women and Itera ASA in Norway with 74% women. This is somewhat affected by a low number of employees in these units.

*Units with less than 5 employees are not included

*Some employees are not categorized in Itera position classification system, they are included in the undefined section.

ANTICORRUPTION

The Group has guidelines for all employees concerning the acceptance of gifts and other benefits or advantages.

INTEGRITY AND GENERAL LEGISLATION

Itera complies with the national legislation and regulations of all the countries in which it operates. All its employees are encouraged to disclose internally any cases in which they have concerns with regard to the Group's integrity or where they are aware that laws or regulations are being breached. Employees can make such disclosures confidentially if they so wish, and the Group will not take adverse action against whistle-blowers, regardless of whether the content of the disclosure is found to be true or false.

SECURITY AND PRIVACY

Underpinning the Itera Business Strategy and policies, the Group has implemented a security and privacy framework applicable to all business units and subsidiaries. Security and privacy as subject matters include privacy, data protection, information security and cybersecurity. Itera's security and privacy framework forms the foundation for both its deliverables to customers and its own operations. This applies to all processes, practices, technology and organisation, and the objective is to ensure compliance with laws and regulations, policies, and guidelines.

Itera does not tolerate any form of corruption. The Group is exposed through its nearshore activities in Ukraine to a certain level of corruption risk as the country has a low score on the Transparency International Corruption Index. Itera has therefore decided to protect the Group from this risk by not delivering services to the public or private sectors in Ukraine where the problem of corruption is principally found, and by only exporting its services to countries where western business standards are the norm. All employees that are part of the Group's nearshore activities have signed confidentiality agreements that include undertakings in respect of data processing and other security arrangements. There are also DPAs and BCR/Ps among all Itera companies and locations. Itera hold an information security management certification (ISO 27001) and were re-certified at the end of 2022.

As a part of our efforts to achieve compliance, Binding Corporate Rules for Processors (BCR/P) and Standard Contractual Clauses (SCCs) as mandated by respectively Articles 47 GDPR and Article 46(1) and Article 46 (2)(c) of Regulation (EU) 2016/679, have been developed and approved by the local Supervisory Authority. The BCR/P allows for the transfer of customers' personal data and SCCs allows for the transfer of internal personal data for processing outside of the EU/EEA. In Itera's case, this is Ukraine.

POLICIES

[GOVERNANCE] G =

Governance 2021 2022 Target 2023
Board Diversity (percentage of women on the board) 50 % 50 % 50 %
Ethics/anti-corruption/human rights covered by the Code
of conduct
YES YES YES
Employee sign-off on the Code of conduct - $\qquad \qquad$ 100 %
Whistleblowing routines YES YES YES
Insider regulations policy YES YES YES
GDPR compliance YES YES YES
Focus on specific UN SDGs YES YES YES
Data privacy policy YES YES YES
Information security management system (ISO 27001) YES YES YES
Transparency Act compliance N O NO. YES
Supplier Code of Conduct NO. NO. YES
EU taxonomy reporting NO. NO YES

Itera's nearshore activities are fully integrated with its Nordic activities, and the entire Group, therefore, follows the same procedures and ethical standards. The Group operates a cloud-based infrastructure with the CCoE (Cloud Center of Excellence) as its core infrastructure, enabling it to manage internal as well as customer resources either within the CCoE or in customer tenants. All cloud-based services and resources are located within the EU/ EEA in line with laws, regulations, and customer requirements.

Financial processes are carried out by a central function with a team located in Norway and Ukraine.

SOCIAL RESPONSIBILITY

Itera recognises that it has a responsibility to the society of which it is part and seeks to contribute to the positive development of those areas of society that are most related to its activities. The Group's ethical guidelines describe the standards that apply to the Group's relationships with customers, suppliers, the public authorities, and its own employees. Further information on Itera's ethical guidelines – The Itera Business Code of Ethics – is available at https://www.itera.com/en/investor-relations.

THE NORWEGIAN TRANSPARENCY ACT

The Norwegian Transparency Act is about business transparency and work with basic human rights and decent working conditions. Itera have zero tolerance for illegal and unethical business behavior and activities within its value chain. As a result of the Transparency Act, Itera has in 2023 evaluated its vendors accordingly within topics of human and social rights. This means evaluation of actual adverse impacts and significant risks of adverse impacts through the Vendor Due Diligence process, updating and revising the Procurement Management Policy and creating a Supplier Code of Conduct that must be signed by our significant vendors. More details can be found in the separate report covering the Transparency Act.

EU TAXONOMY

The EU Taxonomy for sustainable activities is a classification system established to clarify which investments are environmentally sustainable, in the context of the European Green Deal. That is, a categorisation of business activities to determine positive impacts on the environment. Itera will fall under criteria for sector "Information and communication". For Norwegian companies, taxonomy reporting will start as part of annual reporting for 2023. Hence, it is a priority for Itera in the next period.

CORPORATE GOVERNANCE

Itera applies corporate governance that is based on the requirements of the Norwegian Accounting Act and the Norwegian Code of Practice for Corporate Governance. The separate section in the Board of directors' report on corporate governance provides more information on how Itera complies with Section 3-3(b) paragraph 2 of the Norwegian Accounting Act and the provisions of the Norwegian Code of Practice for Corporate Governance.

HUMAN RIGHTS

Itera is committed to ensuring that internationally recognised human rights, such as those defined in the United Nation's Universal Declaration of Human Rights and other UN conventions, are respected. No one shall in any way contribute to an individual's human rights being breached or circumvented.

The Group places special emphasis on ensuring that employees' fundamental rights are respected. Itera has operations in countries outside Scandinavia, specifically Ukraine and Slovakia, and considers that the establishment of these workplaces has contributed to increasing the living standards of its employees in these countries.

Itera and UN Global Compact

Itera is a member of UN Global Compact and supports the 10 principles of United Nations Global Compact on human rights, labour, environment, and anti-corruption. In the 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 ourselves to sharing this information with our stakeholders using our primary channels of communication.

UN GLOBAL COMPACT'S SDG AMBITIONS PROGRAM

In Q4 21 to Q1 22, Itera has participated on UN Global Compact's SDG Ambition program.

This has been a great learning platform to discuss sustainability with other Scandinavian companies across industries. Common to all participating companies is that they have sustainability on the agenda and have a strong desire for the business community to contribute to a sustainable future. SDG Ambition is a six-month accelerator that aims to challenge and support participating companies of the UN Global Compact in setting ambitious corporate targets and accelerating integration of the 17 Sustainable Development Goals (SDGs) into core business management. SDG Ambition enables companies to move beyond incremental progress and step-up transformative change – unlocking business value, building business resilience, and enabling long-term growth.

Category Principles Comment Guidelines/policy/topics Report index
Human rights Principle 1:
Businesses should support and respect
the protection of internationally
proclaimed human rights.
Principle 2:
Make sure that they are not complicit in
human rights abuses.
All employees and board members
associated with Itera must follow Itera's
Code of Business Ethics. Itera does not
tolerate human rights abuses in any
country we operate in.
Itera does not deal with customers and
vendors that violate human rights in any
form.
é Itera Code of Conducç
é Transparency Acç
é Itera Managementã
é Procurement Policy
p. 9
p. 12
Labour rights 3:
Principle
Businesses should uphold the freedom
of association and the effective recognition
of the right to collective bargaining.
4:
Principle
The elimination of all forms of forced and
compulsory labour.
5:
Principle
; and
The effective abolition of child labour
6:
Principle
the elimination of discrimination
in respect of employment and occupation
Itera does not tolerate any form of
/or
discrimination, forced labour and
child labour.
Itera follows national laws and
regulations on labour rights.
Itera believes in transparency and
promotes diversity and inclusion.
é Itera Code of Conductã
é Diversity and
inclusion frameworkã
é Whistleblowing
s
guideline
3
p. 10-1
Environment 7:
Principle
Businesses should
support a precautionary approach
to environmental challenges.
8:
Principle
Undertake initiatives
to promote greater environmental
; and
responsibility
9:
Principle
Encourage the development and diffusion
of environmentally friendly technologies.
At Itera, we focus on environmental
protection by minimising environmental
damage and by promoting and utilising
Our
sustainable technologies.
employees are encouraged to bear in
mind the environmental effects work
related activities have on the
environment and to choose sustainable
solutions as far as possible.
Itera believes in transparency regarding
our environmental impact and reports
on this through several initiatives.
quarters in
Oslo are certi
fied
Itera's head
as an Eco Lighthouse.
é Itera Code of Conducç
é Environmental policy
8
9
p.
Anti-corruption 0:
Principle 1
Businesses should work
against corruption in all its forms,
including extortion and bribery.
As stated in Itera's Code of Business
firmly opposes all
Ethics, Itera
corruption, bribery and money
laundering.
Itera follows strict guidelines on gifts
between stakeholders (customers and
employees etc). Itera has whistle
blowing routines in place that can be
used to report any misconduct.
é Itera Code of Conductã
é Anti-corruption
policyã
é Whistleblowing
guidelines
p. 1
2

EcoVadis

Since its founding in 2007, EcoVadis has grown to become the world's largest and most trusted provider of business sustainability ratings, creating a global network of more than 75 000+ rated companies.

Itera was rated by EcoVadis within sustainability in 2022. EcoVadis is the world's largest and most trusted third party provider of business sustainability ratings, creating a global network of more than 100,000 rated companies. In 2022, Itera received a total score of 66 out of 100, which was a 10% improvement from the previous year. This means that Itera score in the top 10% of all companies and within top 6% in the global IT and consultancy industry. EcoVadis rate companies in relation to environment, labor and human rights, ethics, and sustainable procurement. Itera score highest within ethics, labor and human rights while it received lower scores in the sustainable procurement area. We continuously invest in our sustainability activities, and have high ambitions related to the score on the next assessment.

Oslo, 27 April, 2023 The Board of Directors of Itera ASA

Morten Thorkildsen Chairman of the board

Marianne Killengreen Board member

Hans Joachim Trøbråten Board member (Employee elected)

Jan-Erik Karlsson Board member

Gyrid Skalleberg Ingerø Board member Siren Tønnesen Board member

(Employee elected)

Arne Mjøs Chief Executive Officer

Arne Mjøs CEO Mobile +47 905 23 172

[email protected]

Bent Hammer CFO Mobile +47 982 15 497 [email protected]

Itera ASA

Make a difference 16sustainability report itera annual report 2022

Telephone +47 23 00 76 50 Nydalsveien 28 P. O. Box 4814 Nydalen 0422 Oslo, Norway www.itera.com

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