Our ESG progress

Our ambitions

In 2024, SoftwareOne implemented its go-to-market transformation to better align with customer needs, while reinforcing our commitment to innovation and sustainability. These changes provide a foundation for SoftwareOne to strengthen our ESG impact by embedding sustainability and ethical practices more deeply into our operations and customer services. In a year of change and transformation, we made a strong effort to progress towards our 2030 ambitions.

Risks and opportunities

Our process

Identifying ESG risks and opportunities is crucial to SoftwareOne, because these can significantly impact our financial performance, reputation, and long-term sustainability goals. By treating ESG risks with the same rigour as traditional enterprise risks, we better align our ESG strategy with regulatory requirements and with investor and customer expectations.

We conducted a detailed risk assessment by leveraging our own expert knowledge of the intricacies of our business operations and utilising the insights that Datamaran provides. Datamaran uses advanced AI and data analytics to transform vast amounts of information into actionable insights. This comprehensive approach allowed us to identify and prioritise material issues, assess regulatory and reputational risks, and align our strategy with them. They aligned directly with relevant internal stakeholders (such as our Enterprise Risk Management team, Legal & Compliance, Internal Audit and Senior Leaders) to proactively address and mitigate challenges accordingly and capitalise on opportunities. Using real-time insights and a detailed breakdown of risk drivers provided by Datamaran, we make informed decisions and proactively manage our ESG risks. Risks are periodically reviewed and communicated by the ESG team, along with ongoing actions, mitigations, and areas of potential concern for SoftwareOne’s business operations.

Management oversight and engagement

All identified ESG risks are systematically reviewed by our dedicated ESG committees, which include representation from Executive Board members, the Board of Directors, and specialised business leaders from key functions such as Finance and People & Culture.

In addition, the risks we identify are proactively communicated to the dedicated ESG committees, creating opportunities for valuable feedback and insights. This collaborative structure has enabled us to establish a dynamic, two-way approach to managing risks and opportunities, ensuring that ESG considerations are fully embedded into every aspect of the business and integrated into strategic decision-making.

2024 ESG risk assessment

Environmental

By identifying and monitoring our climate-related risks, SoftwareOne can better navigate the challenges posed by climate change and contribute to a more sustainable future.

Material Topic	Risks	Magnitude	Mitigation	Opportunities
MEASURE, CONTROL & REDUCE OUR GHG EMISSIONS: This issue refers to managing climate-related risks and opportunities from actual or potential physical and transition impacts, including the increasing energy consumption of digital infrastructure. It also includes the direct and indirect emissions of greenhouse gases (GHGs) and emission reduction.	Failure to effectively reduce greenhouse gas emissions and adapt to climate regulations could increase operating costs, legal liability, and reputational damage.	Medium	Our commitment to measuring, avoiding and reducing our emissions is outlined in our Global Environmental Policy. Our carbon reduction plan and road map to net zero outline our commitments, strategy and reduction goals. The plan includes setting clear, measurable targets for emissions reduction, investing in energy-efficient and renewable technologies, and integrating climate considerations into all aspects of operations. Our Carbon Reduction Think Tanks are designed to support our senior country managers with their specific carbon reduction targets through training, localised strategies and policy enforcement. As we integrate AI and cloud-based solutions into our operations, we recognise the importance of managing their energy consumption. To mitigate their environmental impact, we prioritise partnerships with AI and cloud providers that invest in renewable energy, optimise data center efficiency, and implement carbon reduction strategies. Additionally, we continuously evaluate our digital infrastructure to enhance energy efficiency while maintaining operational effectiveness.	Investing in robust business continuity planning and disaster recovery capabilities can strengthen operational resilience and enable innovative customer experience solutions.
	Failure to further reduce Scope 3 emissions from the supply chain could impact financial performance and reputation.	Medium		Leveraging cloud, AI, and IoT innovations can improve operational efficiency, sustainability, and customer experience, driving revenue growth and market share in emerging sectors. These technologies enable enhanced data-driven decision-making, automation, and optimisation of resource use, contributing to overall business sustainability.
SUPPORTING PARTNERS IN ACHIEVING THEIR PUBLIC ENVIRONMENTAL COMMITMENTS: This issue refers to launching Cloud Sustainability and helping our clients measure and reduce their own carbon footprint.	Failure to support our customers’ commitments could potentially lose revenue opportunities and weaken our positioning as a trusted sustainability partner.	Low	Our Cloud Sustainability offering is one of the key contributors that support how our customers measure and reduce their own carbon footprint. SoftwareOne hosts workshops with clients to demonstrate how Cloud Sustainability can improve efficiency and support their carbon reduction goals.	Capturing demand for low-carbon products and services, and optimising energy efficiency can enhance financial value and competitive advantage in a decarbonising market.
				Customers' increasing need for comprehensive solutions in power and utility grid management, carbon capture, and geothermal energy presents opportunities to expand software offerings.
				Providing innovative solutions that enable customers to reduce their carbon footprint through energy efficiency and emissions management can drive revenue growth.
				Developing climate-friendly products and services can drive revenue growth and position the organisation as an industry leader in sustainability.
Material Topic	Risks	Magnitude	Mitigation	Opportunities
TRANSITION TO RENEWABLES & ALTERNATIVE ENERGIES AND SUSTAINABLE OFFICES & RENEWABLE ENERGY: This issue refers to the transition from a predominantly fossil-based energy production system and consumption to renewable and alternative energy sources, including policies, goals, accounting instruments and technologies that facilitate the transition and support strategies for greener offices.	Failure to keep up with new regulations on renewable energy use and environmental impact could lead to stakeholder and financial impacts. Delays in transitioning to renewables across our operations and supply chain could impact emission reduction targets, sustainability commitments, and customer expectations.	Medium	Our ESG team is responsible for monitoring regulatory developments and assessing their impact on our operations, working closely with legal experts and industry specialists to ensure our policies and practices are updated in line with the latest standards. Our ambition to reduce our energy consumption, switch to renewable energy sources and create sustainable offices is outlined in our global carbon reduction strategy, specifically as part of our Green Office Initiative. We are exploring renewable energy procurement strategies and supplier engagement programs to drive Scope 3 decarbonisation efforts.	Investing in renewable energy and sustainability initiatives can generate cost savings, enhance brand reputation, and position the business for long-term success in a low-carbon economy. Transitioning to renewables also mitigates exposure to energy price volatility and regulatory shifts, ensuring greater operational resilience.

Social

Our commitment to our corporate social responsibility and dedication to creating an inclusive culture help address and mitigate various social risks, ensuring a more sustainable and harmonious relationship with both our employees and the broader community in which we operate.

Material Topic	Risks	Magnitude	Mitigation	Opportunities
DIVERSITY & EQUAL OPPORTUNITY FOR ALL: This issue refers to developing our global Diversity, Equity, Inclusion & Belonging (DEIB) strategy.	Failure to prioritise the importance of a diverse workforce and address gender inequality and lack of female representation in leadership could harm reputation and limit talent pool.	Medium	Our global DEIB strategy was created with the vision of attracting a diverse pool of talent, creating a culture where our employees are valued and respected, and ensuring our processes and policies are fair and bias-free. We have set internal goals for various departments and teams that influence our DEIB strategy and milestones.	Advancing gender equality and women's empowerment can drive innovation, enhance employee engagement, and contribute to sustainable economic growth.
	Failure to address discrimination and inequality could lead to reputational damage and loss of talent, impacting financial performance.	Medium
WORKFORCE MANAGEMENT: This issue refers to the process of ensuring our workforce is functioning at its most productive level and copes with organisational changes. It encompasses employee recruitment, retention and development practices.	Failure to effectively manage leadership transition and talent development could disrupt operations and hinder the organisation's ability to achieve its strategic objectives. Difficulty in retaining top talent, combined with increasing competition for skilled professionals, may lead to higher turnover, loss of critical expertise, and reduced productivity.	High	Our People and Culture (P&C) team have strategies in place to ensure that employee benefits reflect our values, our employees have learning and development offering to upskill our workforce, and processes are in place to cope with organisational change. The P&C team is focusing on retention strategies to enhance employee engagement through career progression frameworks, personalised development plans, and competitive benefits. Our Talent Acquisition (TA) team is focused on building a diverse workforce by integrating ESG and diversity principles into our hiring practices, creating awareness and training hiring managers on the importance of a diverse workforce, as well as analysing the TA data to understand trends and gaps to develop actions that promote diversity.	Successful integration of acquired businesses and strategic partnerships could enhance capabilities, expand the customer base, and increase profitability.
	Failure to remain responsive to changes in recruitment processes could significantly impact the company’s future development. Shifts in candidate expectations, digital hiring trends, and regulatory changes may impact our ability to attract and retain key talent, reducing our competitiveness as an employer of choice.	Low		Effective workforce management, including competitive compensation and benefits, training, and fostering a positive culture, can enhance employee engagement and drive business growth. Leveraging digital hiring solutions, workforce analytics, and flexible work models enables us to adapt to evolving workforce expectations while driving business agility and long-term growth.
Material Topic	Risks	Magnitude	Mitigation	Opportunities
ACCESSIBILITY TO TECHNOLOGY FOR NPOS: This issue refers to continuing to expand our SoftwareOne Impact programme to ensure that we consistently give back to the communities we are part of by focusing on our commitment to NPOs.	Fail to live up to our commitments to support NPOs could bring medium financial impacts if we lose this potential revenue stream.	Medium	We have ensured our success through partnership retention and creation, which help us reach our goal of making technology accessible to NPOs and bringing new business to the company through SoftwareOne Impact services to the non-profit sector.	Through this programme we can strengthen and increase partnerships with companies like Microsoft and AWS, diversify revenue streams and increase our indirect impact on local economies and communities.
GIVING BACK & STRENGTHENING LOCAL COMMUNITIES: This issue refers to supporting local & global communities through volunteer and donation efforts.	Failure to engage with local communities could result in financial impacts if relationship with local communities become strained or we lose talent due to lack of commitment.	Medium	Strengthening our relationship with local communities and growing our Gives Back programme allows us to mitigate any risks related to employee engagement, employee turnover or operational continuity. We have focused on providing support to our employees to participate in giving-back activities and tracking the impact.	Investing in community development, education, and sustainability can enhance brand reputation and create long-term value for stakeholders.
TRAINING & EDUCATION: This issue refers to expanding and encouraging the development of the Academy and L&D.	Failure to invest in employee training and development could lead to skills gaps, reduced productivity, and difficulty attracting and retaining top talent.	Low	Our L&D and Academy teams have strategies in place to expand their scope and impact with the future of our industry and our workforce development needs in mind. The dedicated Data & AI team within ITS is actively providing training sessions and resources for educating employees in the use of AI tools eg., Copilot.	Robust training and development programmes can improve employee engagement, productivity and retention, strengthening the organisation's competitiveness and reputation as an employer of choice.
	Failure to upskill employees in digital and AI skills could limit the organisation's ability to adapt to the changing nature of work and customer demands. Falling behind in digital skills development may reduce our competitiveness in a rapidly evolving market.	Medium		Offering world-class training, development and mentoring programmes can enhance employee skills, leadership, and diversity, strengthening organisational resilience.

Governance

SoftwareOne’s commitment to high ethical standards and business integrity involves navigating various governance risks but also presents us with opportunities to lead by example and strengthen our position in the market. Additionally, we have a comprehensive third-party risk management process focusing on high-risk partners, which encompasses onboarding, assessments, risk mitigation, and monitoring processes.

Material Topic	Risks	Magnitude	Mitigation	Opportunities
CUSTOMER PRIVACY & DATA PROTECTION: This issue refers to the aspect of information technology that deals with protecting private corporate information, critical information systems and networks from security breaches. The focus is on how to protect both our customers' data and our own.	Cybersecurity breaches may expose sensitive data, leading to system failures and legal claims, regulatory penalties and loss of customer trust, harming operations and brand trust significantly and adversely impacting financial performance.	Low	Ensuring robust safeguards, compliance with regulations, and transparent communication about our approach are important components of our risk management programme. Our dedicated data protection and cybersecurity teams are continuously focusing on new ways to prevent and respond to threats or new trends in this area. We are continuing to ensure that our policies and processes, for both employees and customers are up to date, tracking the data and focusing on KPIs such as our incident response time and data subject requests. Given the B2B market that we operate in, the risk exposure profile is low. In respect of trainings and awareness, SoftwareOne has annual mandatory cybersecurity and data protection trainings, as well as other ad-hoc exercises meant to address phishing attacks awareness.	Proactively addressing data privacy and cybersecurity through robust policies and controls can enhance customer trust, providing a competitive advantage and new business opportunities.
	Stricter consumer protection and data privacy laws may require costly changes, reducing profitability and exposing the business to legal liability and penalties.	Low
	Failure to sufficiently train and supervise employees on cybersecurity and data protection could result in significant business disruptions, financial losses, and reputational damage.	Medium
BUSINESS MODEL RESILIENCE: This issue refers to identifying and incorporating risks and opportunities connected to social, environmental, and economic challenges into our business model planning. It focuses on how SoftwareOne responds and adapts to these changes to carry on our activities, grow and create value for shareholders and society in the long-term. This includes the topic of human rights, as outlined in Art 964a CO.	Potential failure to maintain robust risk management and internal control systems could negatively impact financial performance, regulatory compliance and organisational reputation.	High	SoftwareOne has remained proactive in responding to new challenges, such as the future of work, data security, risk management, advancement in technologies, etc. We have strategies in place to identify and minimise risks to ensure our business model remains relevant and forward-facing.	Addressing societal needs and demonstrating commitment to sustainability can enhance customer and employee trust, create new business opportunities, and strengthen underlying systems.
	Rapid advancements in AI and generative AI could disrupt existing business models and require significant investments to maintain competitiveness.	High		Leveraging AI and ML can drive operational efficiencies, improve decision-making, and create new revenue streams through innovative products and services.
SUPPLIER REQUIREMENTS FOR ESG: This issue refers to the partnership we have with our supply chain for greater impact.	Failure to manage anticipated growth and evolving stakeholder expectations for ESG compliance, including human rights, environmental performance, and ethical sourcing, could harm brand reputation, disrupt supply chain operations, and weaken customer trust.	High	Given the ongoing shifts in regulations and increasing pressure on companies to strengthen supply chain ESG compliance, we recognise our responsibility to ensure suppliers align with SoftwareOne's Code of Conduct, responsible sourcing, ethical labour practices, and human rights standards. Through our due diligence tool, IntegrityNext, we assess our third parties on ESG topics, including human rights protection, responsible sourcing, and ethical business conduct.	Proactive alignment and compliance with ESG regulations and supply chain due diligence can enhance brand reputation and stakeholder trust, boosting financial performance. By fostering ESG-compliant partnerships, we can open new customer markets, expand into new industries, and drive business growth through responsible sourcing.
Material Topic	Risks	Magnitude	Mitigation	Opportunities
TRANSPARENCY: This issue refers to the comprehensive management of corporate communication through the systematic recording, reporting, transmission of information and analysis of corporate developments, performance and management.	Failure to remain transparent in our ESG practices could impact our standing with stakeholders who have already placed their trust in us.	Low	Creating a transparent approach to our ESG programme is key to our approach. We not only continue to communicate externally on our progress, but use innovative ways to ensure that our employees remain informed, and that the entire organisation is up-to-date and engaged.	Proactive investor relations enhance shareholder trust, strengthen brand and secure funding for sustainable growth initiatives.
ESG GOVERNANCE & ETHICAL BEHAVIOUR: This issue refers to continuous improvement of our corporate governance and ethical culture including the topic of anti-corruption & bribery, as outlined in Art 964a CO.	Failure to continue reinforcing ethical behaviour within our workforce and partners could result in medium financial impacts due to risks from regulatory and legal implications.	Medium	Our commitment to integrity and ethical behaviour is a core value at SoftwareOne. As outlined in our Code of Conduct, we set high standards and expect that our employees will always act ethically. To ensure that these standards are met, our compliance team rolls out annual training and communication campaigns on a variety of topics including basic business decisions, anti-corruption and anti-harassment. By ensuring all employees are trained on these critical topics, we aim to strengthen our governance framework and minimise the risk of unethical behaviour.	Robust employee training on cybersecurity, compliance, and ethical conduct can strengthen operational resilience, protect sensitive data, and enhance stakeholder trust in the organisation.

Magnitude:

Negligible: minimal financial impact and hardly affecting day-to-day operations
Low: small financial impact and noticeable but not altering business-as-usual
Medium: significant financial impact and influence on operational decisions.
High: major financial impact and likely to affect strategic planning.
Extreme: critical financial impact and could alter market position.