U blox : ESG Report

u-blox Sustainability Report for 2023

© u-blox AG 2024, Zuercherstrasse 68, 8800 Thalwil, Switzerland

"Through our

innovations

u-blox envisions a precise, smart, and sustainable future and keeps innovating to make it happen."

Stephan Zizala, CEO u-blox

Table of contents

6	8	22
Foreword	u-blox at a	Sustainabi-
by our CEO	glance	lity at u-blox
	9	22
	Our business	Our sustainabi-
	21	lity strategy
	Our people	33
		Sustainability
		governance at
		u-blox
4		34
		Stakeholder
		engagement

36	48
Pillar 1:		Pillar 2:
Business		People and
Ethics, Privacy,		Communities
and Data		49
Security
	Targets
37		52
	Employee
Targets
	engagement &
38
	development
Responsible
	56
governance
	Diversity, equity,
39
Ethical and		and inclusion
compliant		58
behavior		Occupational
40		health and
Code of Conduct		safety
42		60
No weapons		Community
or weapon		engagement
systems
43
Privacy
44
Security

66	80	96
Pillar 3:	Pillar 4:	Pillar 5:
Environ-	Responsible	u-blox
mental	Supply Chain	Innovations
Responsibility
68	82	97
Targets	Targets	Targets
70	86	98
Climate and	Social and	Social and
environmental	environmental	environmental
management	impacts in the	impact of u-blox
74	supply chain	innovations
Greenhouse gas	91
emissions	Responsible
79	sourcing of
Product	minerals
compliance	92
	Prevention of
	child labor

105	106
About this	Appendix
report
	107
	GRI Index
	113
	OR 964 Index

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Foreword by our

CEO

Sustainability is an integral part of our strategy and is reflected in our new company vision: "The future with us is precise, smart, and sus- tainable." We are inspired and highly motivated to act upon our commitment to sustainability in alignment with our belief that our business focus: the Internet of Things (IoT) positively impacts the world. Consequently, we are intensifying our Environmental, Social and Governance (ESG) activities.

We are delivering on our sustainability roadmap and strategy. As a result of our 2023 materiality process, we have set new 2024 targets, 2025 targets, and 2030-2040 environmental targets.

IoT is a sustainability enabler

Our sustainability strategy at u-blox rests upon five foundational pillars:

Pillar 1: Business Ethics, Privacy & Data Security

Pillar 2: People and Communities

Pillar 3: Environmental Responsibility

Pillar 4: Responsible Supply Chain

Pillar 5: u-blox Innovations

Our IoT products, services, and solutions are embedded into millions of devices designed by our innovative customers around the world. They enable the location and connection of objects to support efficiency, human safety, environmental protection, health, and well being. We are also observing IoT positively impacting humanity and the environment through sustainable applica- tions, thus contributing to the UN Sustainable

Development Goals. Integrating sustainability into our strategy opens new opportunities for us as our innovation helps our customers become technology leaders in their respective industries. Given the potential environmental and social impact our products can and are having, we have decided to update our pillar structure by introducing a new Pillar 5, entitled u-blox Innova- tions. Community (previously Pillar 5) has joined Employees to form Pillar 2, entitled People and Communities.

2023 sustainability highlights

Some of the sustainability highlights from 2023 are the update of our Code of Conduct, a series of 3 IT audits as a prerequisite for ISO 27001 certification, and the establishment of a Diversi- ty, Equity, and Inclusion Council to advance DE&I practice across our organization worldwide.

We have also made progress on our environmental roadmap and net zero strategy. Further, we have intensified our communication with our key contract manufacturing partners and component suppliers about their Code of Conduct practices. We are working with them to address any open issues. Additionally, we triggered a voluntary supply chain sustainability self assessment to benchmark our improvement.

By working with numerous NGOs, we have made progress in understanding the barriers for young women and STEM (Science, Technology, Engi- neering, Mathematics). We are also supporting the >>venture>> Foundation an NGO dedicated

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to empowering young entrepreneurial Swiss students and startups. In support of the International Red Cross organization's disaster aid in Slovenia and Pakistan, u-blox made corporate giving donations while u-blox employees generously donated their time to charitable organizations in their communities around the world.

This report is also the first u-blox sustainability report published following the requirements of the new Swiss legislation in the Swiss Code of Obligations (OR) Art. 964 and in accordance with the Global Reporting Initiative (GRI) Standards, another key milestone on our sustainability roadmap. The new federal Swiss legislation OR Art. 964 came into effect in December 2022 and applies to the fiscal year 2023. Therein, public interest enterprises are obliged to report on non-financial matters, spanning environmental matters, particularly the CO2 goals, social issues, employee related issues, respect for human rights and combating corruption.

Stepping up for sustainability

We value and align ourselves with international sustainability and ESG regulatory frameworks and closely monitor our sustainability impact and that of our partners as we do business with integrity, care for our employees, protect the environment, and contribute to the well being of communities through sustainability projects worldwide.

u-blox envisions a precise, smart, and sustainable future and keeps innovating to make it happen. With purposeful innovation and business integrity, we will continue to build on our progress and contribute towards a sustainable world.

I look forward to sharing our future progress.

Stephan Zizala, Chief Executive Officer

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u-blox at a glance

• Leading Internet of Things (IoT) technology enabler

• 2023 revenues of CHF 576 million

• Listed on SIX Swiss Exchange since 2007

• 1,400 employees worldwide

• 33 locations across 5 continents

• 18 R&D centers

• Serving thousands of customers across 66 countries

• 3 key markets: Automotive, Industrial, Consumer

• Signatory to the 10 principles of the United Nations Global Compact since 2012

• Signatory to the GSMA Digital Declaration since 2020 - a set of aspirational principles to guide activity in the digital age to build a sustainable and secure digital future

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Our business

About us

u-blox provides semiconductor chips, modules, and data services that reliably locate and connect every thing. Our cutting edge solutions drive innovation for the car of the future and the Internet of Things (IoT). Headquartered in Thalwil (Zurich), Switzerland, we have a global presence of 1,400 experts who enable our customers to build solutions for a precise, smart, and sustainable future.

We are inspired by the potential of IoT to improve sustainability. And, we believe IoT is positively impacting our world with precise, smart and sustainable solutions to many of our global sustainability challenges. The IoT describes physical objects embedded with sensors and actuators that communicate - allowing the physical world to be digitally monitored, augmented, or even controlled. Research by the World Economic Forum indicates that 84% of IoT deployments are currently addressing, or have the potential, to address the UN Sustainable Development Goals (SDGs). They have also found that IoT

is undoubtedly one of the largest enablers for responsible digital transformation. It is estimated that industrial IoT alone can add $14 trillion in economic value to the global economy by 2030 (World Economic Forum, "Internet of Things, Guidelines for Sustainability," 2018).

Vision

The future with us is precise, smart, and sustainable.

Mission

Leading the world to reliably locate and connect every thing.

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u-blox at a glance

Innovation at our core

We are a fabless semiconductor manufacturer, relying on solid partnerships with our suppliers based on shared respect and compliance with established international standards for human rights, employee welfare, the environment, business ethics, and management systems.

We are an asset light company with our greatest asset being our diverse team of more than

1,400 innovators spread across the globe. This is important because our markets, customers, and partners are global. We offer semiconductor chips, modules, and services to our ingenious customers, addressing our world's opportunities and challenges. These include megatrends such as climate change, resource constraints, data transparency, demographics, urbanization, and geopolitics.

Our products and services

Our product portfolio is comprised of GNSS positioning chips and modules, short range radio modules, and cellular modules.

u-blox Global Navigation Satellite System positioning (GNSS) chips and modules set the benchmark in performance, with quick delivery of accurate position data. Our comprehensive

portfolio includes standard precision, high precision, precise timing, and dead reckoning solutions and enables Autonomous Driving. For example, in partnership with GMV, u-blox launched u-safe, a pre-certifiedISO-26262/ASIL-Bend-to-end safe positioning solution to help future proof advanced driver assistance systems (ADAS) architectures and make them even safer.

Our short range components and software help our customers achieve a short time to revenue with the efficient use of their own engineering team. A recent Smart Home Application integrated with the Matter/Bluetooth Low Energy (BLE) smart home standards uses Angle of Arrival (AoA) and Angle of Departure (AoD) to provide increased location precision in the home.

Robustness, security, and flexibility are key, with powerful development tools and a global ecosystem of certification and technical support.

u-blox offers a comprehensive range of cellular modules with high quality, scalability, and robust security features. Designed for the automotive, industrial, and consumer markets, they are compatible with different form factors, cost considerations, and quality standards. A use

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