SOCIAL RESPONSIBILITY REPORT OF ESEMDA 2020

January 18, 2021

Sustainability is the heart of Esemda‘s values. Continuing the social initiatives that have already become traditional for many years and striving to be an open, environmentally friendly electronics manufacturing company, we decided to give meaning to activities based on these values in the first social responsibility report for 2020.

In the daily activities Esemda is trying to follow the principles of the "Global Compact" in the areas of human and employee rights, the environment and the fight against corruption. We strive to be a responsible company and encourage the entire team to join initiatives. While 2020 was truly full of challenges, we set ourselves the goal of becoming even more focused and helping those who need that assistance the most right now. We are pleased that at this special time, we are also actively cooperating with medical manufacturers, thus contributing to the fight against the pandemic.

Esemda seeks for continuous optimization of electronics production processes, due to this today the company's activities are based on ISO 9001: 2015 and ISO 14001: 2015 standards and respect for the team and partners. Long-term customers and a constantly growing number of employees encourage us to rethink the meaning of sustainability every year and pay even more attention to social responsibility. Therefore, and in 2021, our goal is to remain a socially responsible and open business that consistently reduces the negative impact on the environment as well as develops and supports various social initiatives.

Human rights. The company opposes any human rights violations and these provisions are observed both in the team and in communication with customers. All of this is stated in the rules of procedure, equal opportunities and personal data retention policies. In 2020, no discriminatory manifestations were observed or recorded and Esemda employees everyday were encouraged to communicate openly and respectfully.

Labor relations. One of our main goals is to be a responsible employer, ensuring the rights of employees, a clear motivation system and striving for long-term employment relationships. In 2020, the average number of employees was 81.64, of which administrative staff accounted for 24 percent and production for 76 percent. According to education, 62 percent employees were with higher education and the team consisted of 43 percent women. Esemda is guaranteed rights, opportunities and obligations regardless of the gender, nationality or other factors of the employees. Also, there was 1 worker under a fixed-term contract. Moreover, the company conducted research on workplaces and stress at work as well as introduced a Kaizen system that allows for even better listening to the team members and strengthens their motivation. As the team grows, we sometimes face the challenges of the microclimate. Due to this, we constantly try to create an open, respectful environment for the team, to promote mutual cooperation and employee development. What is more, we traditionally organize employee nominations. The most loyal ones are provided with additional health insurance and salary supplement depending on seniority level. Esemda tries to adjust to the needs of all employees (individual work schedule, possibility to combine studies with job, work remotely) and organizes annual interviews. Whereas we are an electronics manufacturing company, we also pay special attention to work safety, providing the team with special work equipment, clothing and ensuring ergonomic working conditions.

Environment. In 2020, Esemda certified the international standard - ISO 14001: 2015, which led to even more active and responsible involvement in the protection of the environment, set clearer indicators and goals that would allow a more rational assessment of progress in this area. Also, significant changes have been felt when we built the new, economical factory - we use the heat emitted by the devices for space heating, the building is equipped with energy-efficient lighting and the factory has the latest facility from sustainable suppliers. We also use only safe, harmless materials in electronics manufacturing, actively sort waste, try to use paper as little as possible in case to protect trees, choose representative business gifts made from secondary raw materials, prepare shipments in used packaging, responsibly dispose of batteries and try to create less waste. In 2020, Esemda gave up a total of 3.08 tons of them for recycling. We are glad to be members of the Association of Manufacturers and Importers (GIA) as well as “We Sort“ and regularly consult with environmental experts. One of our most important goals as a business is to try to reconcile economic progress with environmental protection.

Community. In 2020, Esemda supported the social initiatives of the Red Cross, Safe Start, SOS Children's Village, the Food Bank, the Order of Malta, and the Youth Line. The team of the company involved in several social initiatives, too. For example, we are really proud of our team long-standing tradition of voluntary blood donation. Also, we have provided support for several years to Vilnius Tech and the student organization of this university – FiDi - as well as to Vilnius College. Every year we cooperate with the Lithuanian education and science community and in 2020 we had the opportunity to share our electronics production experience with trainees from Vilnius Tech and Vilnius College.

Corruption prevention. Esemda does not tolerate corruption and strives to remain an open company at every step. Due to this, no complaints were recorded in the company and in 2020 was worked ethically and transparently. In a result, we will continue to try to be socially responsible, sustainable and maintain a high level of anti-corruption.

To sum up, we believe that publicizing social initiatives can encourage other companies to choose a sustainable business path, therefore we want to share exemplary practices every year.

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