Limassol, Cyprus, 29
th
March 2023
CONSOLIDATED
NON
-FINANCIAL
REPORT FOR 2022
ASBISC ENTERPRISES PLC
Table of Contents
LETTER FROM THE CEO .............................................................. 3
ABOUT THE REPORT ................................................................... 5
BUSINESS MODEL ........................................................................ 7
STRATEGIC CAPITALS’ DEVELOPMENT ................................. 15
CORPORATE GOVERNANCE ..................................................... 24
STAKEHOLDERS ......................................................................... 31
HUMAN CAPITAL AND EMPLOYEE POLICIES ......................... 36
INTELLECTUAL CAPITAL ........................................................... 42
SOCIAL CAPITAL AND POLICIES .............................................. 45
HUMAN RIGHTS AND POLICIES ................................................ 48
NATURAL CAPITAL AND ENVIRONMENTAL POLICIES .......... 52
POLICIES AGAINST BRIBERY AND CORRUPTION .................. 67
RISK MANAGEMENT ................................................................... 69
NON-FINANCIAL INDICATORS & GRI & IIRC & SASB &
TCFD ALIGNMENT ...................................................................... 74
Consolidated Non-financial Report of ASBISc Enterprises Plc for 2022
3
Letter from the CEO
Doing the right
thing matters for
ASBIS
Dear Stakeholders,
It is with great pleasure that I present the ASBIS
sixth Consolidated Non-financial Report.
2022 has been another year in a row, during which
ASBIS’ business model flexibility has proven of
crucial importance. After two years of pandemics
which have changed the way corporates and
people operate globally, last year started with an
unprecedented Russian attack on Ukraine.
Although Russia has been ASBIS’ largest market
for years, we decided to cease all activity there and
took all necessary steps to meet the requirements
of sanctions on Russia as well as Belarus. Doing
the right thing and standing up to human rights and
ASBIS values is the most important for us. We
continue to operate in Ukraine, supporting its
economy and people to the best of our abilities. We
have reallocated some of our Russian, Belarusian
and Ukrainian personnel to Cyprus and other
countries of operations and donated financial
resources to various humanitarian organisations.
Despite these turbulences, in 2022 ASBIS further
strengthened its business operations,
geographical presence (with stronger focus,
among other on Kazakhstan and Georgia, entry to
Greece) and competences, enhanced product
offering (robots and biotechnology) and acquired
new businesses. Despite contracting revenues, we
expanded gross profit margin and delivered stable
YoY EBIT and net income. We have maintained a
strong cash position which allowed us to continue
to pay dividends. ASBIS has proved even more
resilient and is prepared for future changes within
the demanding IT distribution industry as well as
potential turbulences on markets and economies.
On top of putting our values into practice, we
continued to work on further improvements in our
non-financial reporting. For 2021 reporting we
have been awarded the title of Climate Aware
Company, second year in a row. We took time to
present an even more insightful non-financial
report for 2022. Our 2022 report not only meets the
EU requirements, but also includes SASB
Standards, TCFD Recommendations, IIRC
Framework which is done with reference to GRI
Standards. At the same time, we fulfilled a vast
majority of our obligations and targets from our
2020-22 CSR Strategy.
We promise to continue our actions for the benefit
of all our stakeholders in 2023.
Siarhei Kostevitch
Chairman & CEO
Consolidated Non-financial Report of ASBISc Enterprises Plc for 2022
4
KEY 2022 NON-FINANCIAL INDICATORS
20,000
active customers
in 60 countries
110,000
products in portfolio
60%
transactions on-line
Subsidiaries
in
28countries
4 key
regions
of operations
240+
vendors
2,222
employees
4
distribution centers
7
private label brands
Consolidated Non-financial Report of ASBISc Enterprises Plc for 2022
5
About the Report
Report created in
line with
internationally
recognized
standards and
recommendations
[GRI 2-3, 2-4, 2-5]
This Non-financial Report has been prepared by
ASBIS based on 2022 data for the whole Group,
for dates encompassing January 1, 2022 until
December 31, 2022. The report also encompasses
comparable consolidated data for 2021.
As ASBIS’ shares are listed on the Warsaw Stock
Exchange in Poland, the Report has been created
in accordance with the Polish Bill of Accounting
(which implements the 2014/95/EU Directive into
Polish law) requirements. The Report has been
prepared on the Group level, as on the
consolidated level ASBIS meets the criteria of
article 55.2b. Both in 2022 and in 2021 the Group
employed more than 500 employees on average,
its assets exceeded PLN 102m and turnover
exceeded PLN 204m. Similar disclosure
requirements are also mandatory in Cyprus, where
ASBIS headquarters are located. Summary of
alignment of disclosures with Polish Bill of
Accounting and thus EU Non-financial Reporting
Directive is available at the end of the Report.
The Report is published together with ASBIS
Consolidated Financial Report for 2022 along with
the Polish Ministry of Finance Bill on current and
periodical reports. The Report is compliant with the
requirement of the Polish Bill of Accounting listed
in articles 49b points 2-8. ASBIS non-financial
report is being prepared on annual basis and the
reporting period is aligned with financial reporting.
While preparing the report the Board of Directors
took into consideration also the non-binding EU:
(1) guidelines on non-financial reporting:
methodology for reporting non-financial
information (2017/C215/01) as well as the (2)
guidelines on non-financial reporting: supplement
on reporting climate-related information
(2019/C209/01).
The Report has been prepared based on policies
present in the Group as well as long-standing
practices. ASBIS’ Report has been prepared in line
with internationally recognized SASB
(Sustainability Accounting Standards Board)
Standards for the third year in a row. Following
SASB’s Sustainable Industry Classification
System® we have chosen to report within
Consumer Goods sector and Multiline and
Specialty Retailers & Distributors industry. ASBIS
believes these standards point to all financially
material non-financial aspects of its operations. On
top, since 2021 ASBIS has also applied TCFD’s
climate-related financial disclosure
recommendations in its Non-financial Report.
Summary of financially material disclosures in line
with SASB Standards and TCFD
Consolidated Non-financial Report of ASBISc Enterprises Plc for 2022
6
Recommendations is available at the end of the
Report.
Aiming to provide increasingly more
comprehensive disclosure on sustainability topics,
meeting the expectations of a varied group of
stakeholders, ASBIS decided to add disclosures
“With reference to GRI Standards”. A GRI Content
Index is available at the end of the Report. Also in
this Report, ASBIS has also to a larger extent
applied the Integrated Reporting Framework for
merging financial and non-financial information.
Again, details of alignment have been presented at
the end of this Report.
Even though the Russian attack on Ukraine and
the resultant war had a sizeable impact on ASBIS
operations – Russia has been a key market for
many years – the Board of Directors confirmed that
the stakeholder materiality assessment conducted
two years earlier is valid and that all material topics
are addressed in the Report. The key reason was
that ASBIS’ business model has once again
proven a resilient one, with the business being
transferred to other countries.
The scale of disclosures for 2022 has been
increased YoY. No data for 2021 has been
restated with one exception were more detailed
Scope 3 GHG calculations were introduced. The
Report preparation has been supervised by two
Executive Directors, in frames of scope of
information revealed and quality of data provided.
The Report has been created with due diligence
and care, yet it has not been verified by any
external third party.
In case of questions about the Report please
contact Stelios Souzou at s.souzou@asbis.com or
b.basa@asbis.com.
Consolidated Non-financial Report of ASBISc Enterprises Plc for 2022
7
Business model
ASBIS is one of
the leading IT
distributors in
EMEA Emerging
Markets
[GRI 2-1, 2-2, 2-6]
OVERVIEW
ASBISc Enterprises Plc (Public Limited Company)
is one of the leading distributors of Information
Technology ("IT") products in Europe, Middle East
and Africa (“EMEA”) Emerging Markets: Central
and Eastern Europe, the Baltic States, the Former
Soviet Union, the Middle East and Africa,
combining a broad geographical reach with a wide
range of products distributed on a "one-stop-shop"
basis.
Our main focus is on the following countries:
Kazakhstan, Ukraine, Middle East countries (i.e.
United Arab Emirates, Qatar and other Gulf
states), Slovakia, Poland, Czech Republic,
Caucasus region (Armenia, Azerbaijan, Georgia),
Romania, Croatia, Slovenia, Bulgaria, Serbia,
Hungary and Latvia.
The Group distributes IT components (to
assemblers, system integrators, local brands and
retail) as well as A-branded finished products like
desktop PCs, laptops, servers, and networking to
SMB and retail. Our IT product portfolio
encompasses a wide range of IT components,
blocks and peripherals, and mobile IT systems. We
currently purchase most of our products from
leading international manufacturers, including
Apple, Intel, Advanced Micro Devices ("AMD"),
Seagate, Western Digital, Samsung, Microsoft,
Toshiba, Dell, Acer, Lenovo and Hitachi. In
addition, a part of our revenues is comprised of
sales of IT products under our private labels:
Prestigio, Prestigio Solutions, Canyon, Perenio,
AENO, LORGAR and CRON ROBOTICS.
ASBIS commenced business in 1990 in Belarus
and in 1995 we incorporated our holding Company
in Cyprus and moved our headquarters to
Limassol together with all key management of the
Company. After the recent change, the HQs are
now located at 1, Iapetou Street, Agios
Athanasios, 4101. Our Cypriot headquarters
support, through four distribution centres (two
master distribution centres in Prague and Dubai
and two regional in Tbilisi and Johannesburg), our
network of 31 warehouses located in 28 countries.
This network supplies products to the Group's in-
country operations and directly to its customers in
approximately 60 countries.
ASBIS’ shares are listed on the Warsaw Stock
Exchange and are present in key indices: WIG-
ESG, mWIG40, WIG140, mWIGTR, WIGdiv, WIG.
Consolidated Non-financial Report of ASBISc Enterprises Plc for 2022
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WE (Western Europe)
FSU (Former Soviet Union)
MEA (Middle East and Africa)
CEE
(Central and Eastern Europe)
LIMASSOL, CYPRUS
(HEADQUARTERS)
PRAGUE, CZECH REPUBLIC
(DISTRIBUTION
CENTRE)
DUBAI, UAE
(DISTRIBUTION CENTRE)
SHENZEN, CHINA
(OFFICE)
JOHANNESBURG, SOUTH AFRICA
(DISTRIBUTION CENTRE)
TBILISI, GEORGIA
(DISTRIBUTION CENTRE)
ASBIS OPERATIONS
Consolidated Non-financial Report of ASBISc Enterprises Plc for 2022
9
VISION
Be the leading Value Add Distributor, OEM and
Solutions Provider of IT, IoT, AI across CEE, FSU,
MEA
MISSION
represented by
5 focus areas:
x Develop and Market IT, IoT, AI solutions
x Gain expertise in consultative business
x Excel and leverage on Distribution
x Grow profitably Own Brands
x Manage risks and Zero regulatory issues
VALUES
TRANSPARENCY
We follow high standards of integrity and maintain openness in
communication, striving to build trust with everyone we interact
with at every stage of cooperation.
We believe that a competent, motivated, well
-trained and a
diverse team will be able to deliver on ASBIS strategy and
develop the Company.
RESPECT
We
respect individuality, provide equal opportunities and
encourage diversity in opinions and approaches to work,
creating an environment where people of different nationalities,
cultures, religions, ages, and genders can feel comfortable and
engaged.
We beli
eve that a competent, motivated, well-trained and a
diverse team will be able to deliver on ASBIS strategy and
develop the Company.
PARTNERSHIP
We work with advanced technologies, but most importantly we
work with people, so strong and mutually beneficial
relationships are the foundation of our success.
We take pride in the team spirit of our employees, their
enthusiasm and skill, which we try to maintain knowing that
together we can achieve great things
.
LEADERSHIP
Strong leaders lead by example. We strive
to be an example for
others and help develop leadership skills in our employees.
Our desire to develop professional skills and personal qualities
allows us to grow leaders whose example inspires all team
members and makes us stronger.
MISSION AND VISION
Mission and vision of ASBIS are the guidelines by
which the Board of Directors looks at the Company
and conducts business. These are communicated to
employees and to external stakeholders
.
Consolidated Non-financial Report of ASBISc Enterprises Plc for 2022
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We are
honest
We promote
diversity
We are team
players
We use
good
judgment
We are
responsible
We stick to
the law and
our policies
Never
compromise
on integrity
Just say no
Select
business
partners
carefully
We are
trustworthy
ASBIS 10 GUIDING PRINCIPLES
Consolidated Non-financial Report of ASBISc Enterprises Plc for 2022
11
60 entities
forming the Group
[GRI 2-2, 2-3, 2-4, 2-6]
Both financial and non-financial data have been
prepared based on the same number of fully
consolidated entities and the parent company. As
ASBIS is a publically listed company, its consolidated
financial statements undergo audit and are available
to the public. There are no material associates or
M&A activity. For M&As, we calculate data according
to the period they were part of the Group in the year.
ASBIS SK spol. s r.o.
Bratislava, Slovakia
100%
ASBISC-CR d.o.o.
Zagreb, Croatia
100%
ASBIS Kypros Limited
Limassol, Cyprus
100%
ASBIS CZ spol. s.r.o.
Prague, Czech
100%
ASBIS PL Sp. z o.o.
Warsaw, Poland
100%
ASBIS Romania S.R.L.
Bucharest, Romania
100%
ASBIS Bulgaria
Sofia, Bulgaria
100%
ASBIS HungaryCommercial
Ltd, Budapest, Hungary
100%
ASBIS d.o.o.
Belgrade, Serbia
100%
UAB Asbis Vilnius
Vilnius, Lithuania
100%
ASBC
Minsk, Belarus
100%
ASBIS d.o.o.
Trzin, Slovenia
100%
ASBIS Morocco s.a.r.l.
Casablanca, Morocco
100%
ASBIS DE GmbH
Munich, Germany
100%
ASBIS Kazakhstan LLP
Almaty, Kazakhstan
100%
Asbis Baltics SIA
Riga, Latvia
100%
CJSC ASBIS
Minsk, Belarus
100%
Asbis China Corp.
Shenzhen, China
100%
E-Vision Minsk
Belarus
100%
ASBIS Poland Sp. z o.o.
Warsaw, Poland
100%
ASBC LLC,
Tbilisi, Georgia
100%
ASBIS IT Solutions
Hungary Kft., Hungary
100%
ASBIS CA LLC
Tashkent, Uzbekistan
100%
ASBC LLC
Yerevan, Armenia
100%
ASBC Entity
Tashkent, Uzbekistan
100%
Entoliva Ltd
Limassol, Cyprus
100%
Asbis OOO
Moscow, Russia
100%
Asbis Hellas Single Member
S.A. Athens, Greece
100%
ASBISC ENTERPRISES PLC
Limassol, Cyprus
E.M. Euro-Mall Ltd
Limassol, Cyprus
100%
Prestigio Plaza Ltd
Limassol, Cyprus
100%
ASBIS Ukraine Ltd
Kiev, Ukraine
100%
Perenio IoT spol. s r.o.
Prague, Czech
100%
ASBIS d.o.o.
Sarajevo, B&H
90%
ASBIS ME FZE
Dubai, U.A.E.
100%
ASBC MMC
Baku, Azerbaijan
65,85%
Breezy Trade-In Ltd,
Limassol, Cyprus
80%
ASBC Kazakhstan LLC,
Almaty, Kazakhstan
100%
Real Scientists Ltd
United Kingdom
55%
i-Care LLC
Almaty, Kazakhstan
100%
iSupport LTD
Kiev, Ukraine
100%
Breezy LLC,
Kiev, Ukraine
100%
I.O.N. Clinical Trading Ltd
70%
R.SC. Real Scientists Cyprus
Ltd
85%
Breezy Service LLC
Kiev, Ukraine
100%
I.O. Clinic Latvia SIA
Riga, Latvia
100%
SIA Joule Production
Riga, Latvia
100%
Atlantech Ltd,
RAK, U.A.E.
100%
MakSolutions LLC
Minsk, Belarus
100%
Breezy Kazakhstan TOO
Almaty, Kazakhstan
100%
Breezy LLC
Minsk, Belarus
100%
Breezy Georgia LLC
Tbilisi, Georgia
100%
Breezy Poland Sp. z.o.o,
Warsaw, Poland
100%
Breezy-M
Chisinau, Moldova
100%
Euromall Bulgaria
Sofia, Bulgaria
100%
I ON LLC
Kiev, Ukraine
100%
Euro-Mall s.r.o.
Bratislava, Slovakia
100%
Acean.PL sp z o.o.
Warsaw, Poland
100%
ASBC SRL
Chisinau, Moldova
100%
Prestigio Plaza Kft
Budapest, Hungary
100%
Representative
offices/Warehouses/Branch
ASBISc Enterprises PLC
Agency
Prague, Czech
100%
ASBISc Enterprises PLC
Warehouse
China
100%
Consolidated Non-financial Report of ASBISc Enterprises Plc for 2022
12
We think globally
and act locally
[GRI 2-6]
VALUE CHAIN
The value chain starts with the end-customer
whose purchases ASBIS aims to forecast. We thus
analyze market trends, evaluate potential demand
and look for profit opportunities. Based on our
analysis, we later on select products and product
groups that will be distributed and sold. Product
offering is adjusted according to market changes
and profit it generates. Then the Company creates
a strategy to develop certain product groups and
customer demands. In 2022, the number of active
articles in offer grew to c.236 ths from c.218 ths in
2021 due to adding more private labels.
While setting the product offering, we co-operate
with our suppliers. In 2022 the number of suppliers
increased to 1,454 versus 1,321 in 2021, due to
modifications in our product offer (incl. private
labels). We have long-term relations with our
suppliers based on mutual trust and understanding
of mutual needs and constraints. Most of these are
large international companies. We strive to provide
our suppliers full visibility by reporting to them
crucial information on a daily/weekly basis,
including stock levels, sales-out reports by country,
thus assisting them in monitoring customer
demand and allowing them time to comprehend
and react to specific market peculiarities, trends
and dynamics. In 2022, a significant portion of our
revenues was generated from ten biggest
suppliers, like in 2021. However, we believe that
we place no reliance on any of our suppliers since
we carry for every product category a wide portfolio
of brands. We choose new suppliers based on the
market trend demands.
Placing an order depends on the supplier: it can be
done via our supplier’s on-line system or email. We
operate a system of centralized purchasing
through our headquarters in Limassol, Cyprus,
however we also possess a purchasing office in
China. Country managers communicate expected
sales levels and targets, analyzed by product lines
and suppliers, to our product line managers who
then identify purchasing requirements for the
forthcoming three weeks and in turn forward this
information to vice president of product marketing
who verifies and, upon agreement, consolidates
the information. Information is then presented to
the management, holding weekly meetings to
review and approve requirements.
Suppliers deliver goods to our two master
distribution centers (Prague and Dubai) and two
regional distribution centres (Tbilisi and
Johannesburg). We strive to keep our stock,
including stock in transit, for our main product lines
at a level of four weeks of sales, and to cover four
to five weeks of revenues for other product lines in
order to ensure adequate supply, while reducing
the length of time over which we hold our inventory
at our warehouses.
Consolidated Non-financial Report of ASBISc Enterprises Plc for 2022
13
Having purchased the goods, we act as a non-
exclusive distributor. We are responsible for
promoting, marketing, advertising, selling, and
providing training and after-sales support for each
supplier's products in the respective markets. A
monitoring mechanism is established by the
suppliers to ensure that minimum sales targets are
met, pursuant to which we are responsible for
providing our suppliers with various reports,
including weekly inventory reports and monthly
point of sales reports. The aim of ASBIS is to be
one of the top distributors for every supplier to get
most of the supplier`s support.
We order large volumes of products to benefit from
economies of scale and resell these at competitive
prices to our customers. We have no reliance on
any single customer. Our biggest customer was
only responsible for some 5.6% of total revenues
in 2022. Our active customers (c. 20,000 in 2022,
stable YoY) can place orders via our IT platform
which is called IT4Profit and by telephone call or
email. In 2022 and 2021 c.60% of sales were
conducted on-line, based on our IT4Profit platform.
It allows not only electronic trading with customers
but also data exchange between the parent
company and its subsidiaries. In all regions we co-
operate both with large enterprises and mid-size
companies. In all regions we are looking for well-
established companies with proven products and
business models. Our clients are in vast majority
corporates. These include a broad range of
corporate clients: system integrators, resellers
(including value added resellers, SMB resellers),
retail companies, PC assemblers, service centers
and telecom companies.
Once a customer files the order, we have to deliver
it. We operate through 31 local offices in 28
countries. Customer orders are mainly served
through the supply of local offices, and in the event
that local inventory levels are insufficient,
additional inventory is drawn from one of the
distribution centers. Each local office operates its
own logistics function and is responsible for direct
shipments to its customers. Our headquarters
monitor and assess the performance of each local
logistics center by using a number of key
performance indicators, including transit time of
incoming shipments, order fulfilment, (such as
pick, pack and ship time and the percentage of
orders shipped to commitment by date and time),
on-time delivery, transport, cost per kilogram
shipped and cycle count performance. We know
average time of delivering an order is important for
our customers. In 2022 we were able to decrease
the average processing time of orders to 15.5
hours versus 16 in 2021. At the end of 2022 we ran
27 Apple stores in 11 FSU countries (17 stores in
2021), with 3,659 m2 floorspace, providing us with
a direct exposure to our customers.
Lead time depends on supplier`s stock location
and way of delivery. It can vary from several days
to 2-3 months. Same applies for own brands as
well. Sale to the end customer is conducted by
ASBIS’ business partners and APR stores.
ASBIS does not
do business
directly with
public sector
Consolidated Non-financial Report of ASBISc Enterprises Plc for 2022
14
ASBIS VALUE CHAIN
SUPPLIERS
OFFER
CUSTOMERS
Producers of private label products
Other equipment manufacturers
Retailers and 27 stores
SMB resellers
Enterprises
Private labels
PC and server
components
Desktop and
mobile PC
Software
Smartphones
Cloud Services
Value add
solutions
Internet
of Things
IT components
OEMs (original equipment
manufacturers)
Prestigio
Perenio
Canyon
OEMs
(o
rigin
m
anufa
c
CUSTOMER
ORDERS
On-line
Off-line
TRANSPORT FROM PRODUCERS
4 DISTRIBUTION CENTRES
31 LOCAL WAREHOUSES
DELIVERY TO CUSTOMERS
AENO
LORGAR
Prestigio Solutions
Cron Robotics
Consolidated Non-financial Report of ASBISc Enterprises Plc for 2022
15
Strategic capitals’ development
What we put into the Group
How we process capitals
What we give back
daily operations, including
taking decisions what to order
and in what quantities
_
amendments and upgrades
to product offering, discussions
with suppliers
_
hiring and retaining
of employees
_
creating financial statements,
discussions with investors and
banks, paying taxes and social
charges
_
back-office maintenance
Financing capital
equity,
generated cash as well as bank loans and
factoring arrangements
.
_
Manufacturing
capital
the production capacities of our suppliers and partners,
our distribution centres and warehouses
.
_
Intellectual
capital
the brands and IPs that we possess
.
_
Human
capital
our employe
es working in subsidiaries in 28
countries,
their know
-how and engagement.
_
Social
capital
strong reputation that ASBIS possesses among its
customers and suppliers
, our relations and impact on
local societies.
_
Natural
capital
natural resources that are used to manufacture products
that we distribute.
Financing capital
generation of cash flows that can be reinvested into the
Company or paid out as dividends.
_
Manufacturing
capital
supporting suppliers and the manufacturers they engage,
supporting private label
production in China
and our DSs.
_.
Intellectual
capital
development of possessed brands, especially private
labels.
_
Human
capital
development of employees, trainings, internal promotions,
new opportunities.
_
Social
capital
strengthening our relations with suppliers, customers and
local societies.
_
Natural
capital
recycling initiatives introduced.
ASBIS business can also be looked at from the perspective of six capitals that the Group possesses and processes in day-to-day operations.
Consolidated Non-financial Report of ASBISc Enterprises Plc for 2022
16
2022 required
changes in
countries of
operations from
ASBIS
FINANCIAL CAPITAL
Financial capital of ASBIS consists of equity,
generated cash as well as bank loans and
factoring arrangements. These allow us to operate
on a daily basis. ASBIS financial capital is
supported by our history of flexibility and adapting
to changing external surroundings which has once
again been proven in 2022, during which Russia
(the largest ASBIS’ market until that moment)
attacked Ukraine (another large market). ASBIS
followed all required sanctions on Russia as well
as Belarus. The Ukrainian market’s demand
suffered due to war.
ASBIS diversified its operations, by moving
stronger to, among others, Kazkhstan, Georgia,
Armenia. These proactive moves have allowed the
FSU (Former Soviet Union) region to remain the
largest one, exceeding half of our revenues in
2022 (and 2021). CEE (Central and Eastern
Europe) remained the second market, while MEA
(Middle East and Africa) the third one, leaving the
fourth place for Western Europe (WE). We
continued to improve our portfolio of products and
services by launching a new business division
related to robotics and investing in companies from
the biotechnology sector, at an early stage of their
development. Still, Group revenues fell 13% YoY
in 2022.
The IT distribution business is characterized by
relatively low margins. In 2022 our gross profit
margin reached 8.5% (versus 7.1% in 2021), with
the growth coming from a change in product mix,
increasing share of own brands and focusing on
value added distribution and going into markets
where we have a competitive advantage.
REVENUES (US$ m)
2022 REVENUE SPLIT (US$ m)
3,078
2,690
2021 2022
FSU
53%
CEE
24%
MEA
15%
WE & Other
8%
Consolidated Non-financial Report of ASBISc Enterprises Plc for 2022
17
We continue to
pay dividends
[GRI 201-1]
Direct economic
value generated and
distributed
US$ m
Direct economic
value generated:
revenues
2,690
Economic value
distributed
2,632
- operating costs
excl. employees
2,490
- employee wages
and benefits
89
- payments to
government
15
- payments to
providers of capital
37
Economic value
retained
58
Operating cost caustiousness is important for
ASBIS as it helps to build our financial capital.
These include among others selling and logistics
costs as well as employee expenses. In 2022
ASBIS increased its headcount, yet retained its
SG&A efficiency which coupled with growth in
gross profit sufficiently covered higher employee
costs. However, it did not make up for the lost
revenues from Russia. As a result, in 2022, our
EBIT and net income fell 2% YoY, yet showed
margin expansion: 2022 EBIT margin came in at
4.1% (+0.4pp) and net margin at 2.8% (+0.3pp).
Due to the strong standing of the Company, ASBIS
does not use equity financing and finances its
growth via debt and factoring.
Strong financial capital allows ASBIS to remain a
dividend paying company. Our dividend policy is to
pay dividends at levels consistent with our growth
and development plans, while maintaining a
reasonable level of liquidity. To share with
shareholders, in November 2021 ASBIS paid out
an interim dividend of US$ 0.2 per share which
amounted to US$ 11.1m of cash outlay. The 2022
AGM approved an additional US$ 0.1 per share
dividend from 2021 earnings, with dividend
payment totaling US$ 16.65m. In 2022, ASBIS
also paid an interim dividend of US$11.1m (US$
0.2 per share) in December 2022.
EBIT (US$ m)
NET INCOME (US$ m)
Financial capital affects all other capitals as due to
its generation we can remunerate our employees
(human capital), develop our intellectual capital
support our social capital.
114
111
2021 2022
77
76
2021 2022
Consolidated Non-financial Report of ASBISc Enterprises Plc for 2022
18
Modern
distribution
centres add to our
manufacturing
capital
MANUFACTURING CAPITAL
ASBIS manufacturing capital consists of
production capacities of our suppliers and partners
as well as our distribution centres and warehouses
due to which we can distribute goods sold to our
customers. Our Cyprus HQs as well as regional
offices add to our manufacturing capital.
Our suppliers’ manufacturing facilities are based
all over the world. Our distribution network is based
on more than 40 in-country stock points - across
CEE, FSU, Gulf, Caucasus, and Africa-
replenished via two master distribution centers
located in Prague (the Czech Republic) and Dubai
(the United Arab Emirates) and two regional
distribution centers located in Tbilisi (Georgia) and
Johannesburg (South Africa).
The facility in Prague is responsible for distribution
across whole Europe. It is leased and covers a
total area of 14,000 m2. Dubai serves our
operations in the Middle East and Africa and
certain Central Asian countries. It is owned and
has an area of 4,246 m2.
The distribution center in
Johannesburg is served as a fast-reloading station
to ASBIS customers located not only throughout
South Africa, but also in the central regions of the
continent. The lease covers an area of 4,000m2.
The distribution center in Tbilisi is a base for the
Caucasus region – it is the smallest with 3,000m2.
The total warehouse space of ASBIS, including
main, regional and local distribution centers,
currently amounts to approximately 63,000 m2.
In the middle of 2022, ASBIS moved to new offices
in Limassol, Cyprus, situated on land leased from
the Ministry of Commerce. The building is owned
by the Company – the premises used to be a
factory, which we renovated to be fit as offices. It
is c.11,100 m2 including the parking lot. On the
ground floor, besides offices, there is a store, a
showroom, a small warehouse and laboratories.
On the second floor dining room, conference room
and various offices are located. The building has
the capacity to facilitate more than 300 employees.
At the moment 250 employees work there. The
premisses are equipped with the latest technology.
The whole building is indirectly powered by solar
energy, through the purchase of electricity from a
producer and supplier of clean energy.
Our manufacturing capital supports our financial
capital as thanks to it we can conduct our
operations. It also helps our human capital by
allowing our employees to work in proper
conditions. As such it supports development of
intellectual capital and social capital (by
strengthening relations with local communities).
Our human, social, intellectual and natural capital
are described in separate sections of the Report.
Consolidated Non-financial Report of ASBISc Enterprises Plc for 2022
19
Our business
strategy is linked
with our CSR
strategy
STRATEGY
ASBIS possesses both a business strategy and a
CSR (corporate social responsibility) strategy.
Business strategy
Our business strategy remains the same over the
years. ASBIS intends to grow its business and
increase its profitability, mainly by improving its
operating efficiency in the distribution of IT
components and by increasing sales of its private
label products. This is to be achieved by:
increasing or retaining sales and market share
in the CEE region, selected FSU countries and
the Middle East and Africa;
enhancing product portfolio (smartphones, IT
components, VAD) and improving gross profit
margin;
further optimizing our private label business;
controlling our cost structure, enhancing
operating efficiency and automated processes,
including our online sales channels;
engaging in alternative investments and new
technologies.
We will continue to implement the strategy as well
as conduct any necessary tactical changes
resulting from short- and medium-term changes on
the IT distribution market.
CSR Strategy
Our actions show our commitment to all our
stakeholders and follow the path indicated in our
corporate social responsibility strategy. Our CSR
strategy is linked to our business strategy and
takes into account ASBIS’ distribution oriented
business model which places us in the centre
between the largest hardware producers and
corporate clients (large enterprises and SMEs).
The Company’s CSR strategy has been created
for the years 2020-22 during which ASBIS focused
on: innovation, improvement and integration. After
three years of its implementation, we believe that
progress has been made on all fronts:
we expanded our offer not only via latest
inventions and cloud-based solutions but also
through environmentally friendly ones,
we improved efficiency of our operations,
understanding of our environmental and
climate footprint and recycling,
we continued to provide an integrated and
open workspace for all employees.
Consolidated Non-financial Report of ASBISc Enterprises Plc for 2022
20
ASBIS 2020-22 CSR STRATEGY
Innovate
new products, new solutions, new ideas
TARGET
ADVANCEMENT
We want to offer our customers new products that will be more environmentally friendly. We will be introducing these
once these are available from
producers.
We
continue to implement more eco-friendly products into offering. Prestigio private label launched power banks which first in Europe use
graphene with exceptional t
hermal conductivity and electro mobility that is safe for the environment. Also, Perenio IoT, another our
private
label
, introduced a smart Eco-heater to its portfolio. Our private label AENO, offering products from small household
appliances segment, is
based, among other, on reliability and eco-friendliness of packaging materials (no plastic).
Our aim is to offer our customers new solutions that will enable them to work more efficiently and conveniently both
at their offices, while travelling and from homes. We envisage workplaces to be supported by the pace of changing
technology.
We have conducted
strategic sessions and surveys with our customers to increase the understanding of their current and future needs.
These have been
modified to some extent by the pandemic. One
example is cooperation of Perenio and Transatel to solve the challenge of
distributed workforce with enhanced and scalable connectivity for employees working remotely.
Another example is the 2022 agreement to
provide
a wide range of Q-nomy’s products, especially a software package integrating appointment scheduling, customer flow manageme
nt,
business process management and interactions management.
We plan to support new ideas within technology and have the industry innovation in our offer.
We are
progressing with our plans. One example is the Prestigio Touch and Click Keyboard.
Works with Clevetura have been finalized on the
world's first laptop with a built
-in touch panel in TouchOnKeys™ technology. Also, we have invested in multiple innovative companies
(Promed & RSL)
in the field of biomedics and biotechnology, where we expect not only t
o maximize their performance but to give back to the
community solutions that might be proven
lifesaving. Therefore, in ASBIS we invest in innovation which ensures or commits to deliver
maximum results for the common good.We also invested in robotics segments by creating our own brand, CRON Robotics.
Consolidated Non-financial Report of ASBISc Enterprises Plc for 2022
21
Improve
more efficiency, more understanding, more recycling
TARGET
ADVANCEMENT
We want to be more efficient in our operations so as to offer additional value for our customers and lower our
environmental footprint.
We have introduced a policy that all new corporate cars must be hybrid, to reduce our environmental footprint.
We have analysed eco-
friendliness of our warehouse machinery to understand our electricity consumption.
As a result, we have moved to a new warehouse in
Prague. The facility
is a modern building with good insulation, energy efficient lighting and heating as well as solar power. We have also
changed our headquarters in Cyprus for a more modern one.
Our aim is to obtain an in-depth understanding of our environmental and climate impact on each level of our value
chain.
We appointed an officer to
analyse the environmental and climate impact. From 2020 we started calculations of our carbon footprint and
increased the scale of climate disclosures
. As a result, ASBIS was awarded the title of Climate Aware company two years in a row
and we
en
tered the WIG-ESG index. We present climate related risk and opportunities, climate scenarios and Scope 1, Scope 2
and selected Scope
3 CO
2
e calculations. We will continue with expanding our understanding of Scope 3 GHG emissions in upcoming years.
We plan to launch more recycling initiatives together with our suppliers and broaden our offer of refurbished
products.
All our private labels packaging is
full recyclable. During 2022 we enhanced the Breezy brand that trades-in used Apple and other brand
products, for which the current owner will receive a discount on the purchase of new devices of these companies. These produc
ts are
thoroughly diagnosed, refurbished and serviced by Breezy professionals. Devices t
hat are reusable will go on sale at reduced prices. The
remaining products will be recycled.
The project expanded in 2022 from a start-up phase and its trade-in services are available in
Kazakhstan, Ukraine, Cyprus, Georgia, Poland and Moldova.
Consolidated Non-financial Report of ASBISc Enterprises Plc for 2022
22
Integrate
people with data, people with people, people with environment
TARGET
ADVANCEMENT
We want to help our customers integrate more with data possessed. By providing them with the latest technology and
solutions we support them in harnessing data,
which is needed to run their businesses more efficiently.
We offer our customers the latest technology, solutions and support. We have invested in latest security systems for data pro
tection.
With the
help of our in
-house IT4Profit platform, we manage to collect a vast
amount of data about our financial performance, our suppliers’ and
customers’ needs, as well as other useful information. This data is available in real time to our personnel, who can use it to evaluate the
business environment better and take more informed decisions. We also promote integration of our
personnel with state-of-the-
art collaboration
software.
On top, in 2022 we have signed a distribution agreement with IP Infusion,
further expanding its portfolio of open networking software
and solutions
for carriers, service providers and data center operators.
We have also expanded our geographical coverage of Pure Storage
products, that help customers put data to use while reducing complexity and expense of managing the infrastructure behind it.
Our aim is to continue to provide an open and supporting workplace for our employees. We will continue to work on
diversity to shift the representation of different nationalities and
genders on senior levels within the Group.
Diversity lies at t
he heart of ASBIS operating in c.60 countries, across different nationalities, cultures and religions. Every day we work to
create an open and supporting workplace where everyone would feel incl
uded. We have moved to new offices in Cyprus
with much better
facilities which enhance
d the working experience of our Cyprus employees. ASBIS has also been cerified as a Great Place to Work® two
years in a row
, due to its efforts to create a workplace
where every employee has a consistently positive experience and demonstrated that
the powerful culture unlocks the full potential of people to drive real business results
for two years in a row. Also, we have m
ade significant
improvement in
board gender diversity – women consititute 30% of Board
of Directors with one being an Executive Director and the other a
Non-Executive Director.
We plan to launch more actions among our employees to help them understand their and ASBIS environmental and
climate
impact and work towards its minimisation.
The process
of planning seminars and workshops on environmental awareness
has been interrupted by two years of pandemic and war in
Ukraine.
Consolidated Non-financial Report of ASBISc Enterprises Plc for 2022
23
[GRI 2-22] Support for UN SDGs
Fullfilling almost in full the targets from the 2020-
22 CSR strategy shows the Board of Director’s
commitment to ASBIS’ sustainable development.
On top, ASBIS’ operations support attainment of
the United Nations Sustainable Development
Goals for 2015-2030, among others:
SDG 8 Decent Work and Economic Growth (we
have subsidiaries in 28 countries and operate in
some 60 countries; we offer our employees fair
wages and permanent employment contracts),
SDG 9 Industry Innovation and Infrastructure (we
introduce innovative solutions into our portfolio
and acquire new ideas; we help our customers in
emerging markets upgrade their IT infrastructure
to more environmentally sound one; we support
local communities),
SDG 12 Responsible Consumption and
Production (we engage in waste reduction
initiatives, support responsible purchases by our
customer and expand the Breezy initiative for
trading in used appliances),
SDG 13 Climate Action (we broaden our eco-
friendly product offering, we measure our carbon
footprint, we introduced a policy that all new
corporate cars must be hybrid).
2023 OUTLOOK
Key aspects of our 2023 plans encompass:
retaining a strong market position in terms of
Apple brand and strengthening relationships with
customers and suppliers,
focus on acquisition and servicing of large
business projects. We expect to replicate the
success of last three years with data centers and
other projects despite losing out the Russian
business. We will remain focused in all other
markets,
solutions already developed show signs of
success and the Company is expecting to
significantly benefit from expansion of these
solutions in all markets we operate,
continuation of development of Central Asia,
Caucasus, Adriatic and Balkans regions as well
as Western Europe. Moreover, the Company
decided to extend its coverage by entering new
markets in Africa. These are very promising
markets with much higher growth potential,
good contribution in revenues and profitability
from private labels. The Company’s aim is to
push the own brands to higher levels. It is worth
mentioning that the Group has strongly entered
into the used smartphones market with Breezy
and plans to further develop this business in all
countries of operations
.
Consolidated Non-financial Report of ASBISc Enterprises Plc for 2022
24
Corporate governance
Corporate
governance
matters for ASBIS
[GRI 2-9, 2-10, 2-11, 2-12,
2-13, 2-14, 2-15,2-17,
2-18, 2-19, 2-20, 405-1]
ASBIS’ shares are listed on the Warsaw Stock
Exchange (WSE) in Poland, on the main market.
We follow and comply with “hard law” and “soft law”
that are prevailing on our main listing place. The
“soft law” is the Code of Best Practices of WSE
(issued in 2021) which was approved by ASBIS’
Board of Directors. Each year together with its
annual report the Company files a statement of
compliance. If any rules are not followed, these are
communicated and explained (following the
“comply or explain rule”).
Although our listing takes place in Warsaw where
civil law prevails, the corporate rules and corporate
structure originate from Cyprus, where we are
incorporated and where common law prevails. We
thus operate based on publically available
documents, which were filled with the Registrar of
Companies in Cyprus. These are:
Memorandum of Association – which contains
fundamental conditions based on which we
are allowed to operate,
Articles of Association – which define the
responsibilities of directors, the kind of
business to be undertaken and ways in which
shareholders can influence the Board of
Directors.
The Company is governed by a Board of Directors
(BoD) which consists of both executive directors
(EDs) and non-executive directors (NEDs), all
managed by the CEO (Chief Executive Officer).
The aim of executive directors is to set the strategy
of the Company and to manage the Company by
supervising managers, assuring financing is
available and managing risk. The role of non-
executive directors is to supervise the way the
executive directors perform their duties, to
scrutinize the performance of BoD and
constructively challenge its decisions.
The management of the business and the conduct
of the affairs of the Company are vested in the
directors. The Board of Directors should maintain
a healthy system of internal controls in order to
safeguard shareholders’ investments and the
Company’s assets. The Directors may exercise all
the powers of the Company to borrow money, and
to charge or mortgage its undertaking, property
and uncalled capital, or any part thereof, and to
issue debentures, debenture stock and other
securities whether outright or as security for any
debt, liability or obligation of the Company or of any
third party.
Consolidated Non-financial Report of ASBISc Enterprises Plc for 2022
25
All shareholders
are equal - one
ASBIS share
equals one vote
The Board of Directors performs its work on a
permanent basis. However, one third of directors
should retire every year by rotation. We have six
directors at the date of publication of the Report
(four are executive and two non-executive). So, at
least two (or more) directors need to retire and be
re-elected every year. None of the directors is an
employee representative. The non-executive
directors are independent ones.
The Board of Directors is appointed by the General
Meeting of Shareholders which takes place at least
annually. The annual general meeting approves
the financial statements of the Company,
distribution of profits (dividend) and discharges the
Board of Directors members from their liabilities
related to former year performance, elects
directors in place of those retiring, appoints them
and sets the remuneration of auditors. Other
general meetings are extraordinary meetings
taking place on special occasions.
An annual general meeting, and a meeting for the
passing of a special resolution, shall be called by
at least twenty-one days’ notice in writing, and all
other meetings shall be called by at least fourteen
days’ notice in writing. The notice shall be
exclusive of the day on which it is served or
deemed to be served and of the day for which it is
given. It shall specify the place, the day and the
hour of meeting and in cases of special business,
the general nature of that business. The
Company's Articles of Association do not provide
for general meetings to be held outside Cyprus.
The largest shareholder in the Company is its
founder and the CEO, Siarhei Kostevitch. He
controls the Company having effectively an almost
37% stake. The management is also a shareholder
in ASBIS. Three remaining executive directors
hold combined a c.1.8% stake. As of the day of
publication of the Report, there is no institutional
investor above the 5% reporting hurdle. ASBIS has
a sizeable free float of c.63% (incl. the 1.8% stake).
Thus, ASBIS’ founder, Siarhei Kostevitch, is the
largest shareholder, Chair of the Board of Directors
and the CEO. Since 1990 he has been fully
committed to the Company and has supported
ASBIS while weathering several crises. During
2006 and following the AIM listing ASBIS had an
NED as Chair who resigned during the crisis of
2008-09. Ever since Siarhei Kostevitch has
undertaken the role of Chair to steer the Company
until its current standing. Still, being also the major
shareholder, he has always been able to separate
his roles between the executive role and the
fundamentally more compliant role of the
Chairman of the Board of Directors. He is also
assisted by NEDs and since 2009 we have not
faced any issues with compliance and reporting.
On top, dealing with conflicts of interest is
described in our Code of Conduct.
Each share confers the right to cast one vote. Each
shareholder is entitled to attend the meeting, to
address the meeting, and, if voting rights accrue to
him or her, to exercise such voting rights.
Shareholders may attend meetings in person or be
represented by a proxy authorized in writing.
Consolidated Non-financial Report of ASBISc Enterprises Plc for 2022
26
ASBIS has both an
Audit and a
Remuneration
Committee
No special rights attach to any specific shares and
there are no different classes of shares.
There is both an Audit Committee and a
Remuneration Committee at ASBIS. The Audit
Committee consists of the two NEDs and one
executive director (the CFO of the Group) who is
an attending member. The Audit Committee meets
at least twice a year. The Audit Committee is
responsible for ensuring that the Group’s financial
performance is properly monitored, controlled and
reported. It also meets the auditors and reviews
reports from the auditors relating to accounts and
internal control systems. The Audit Committee
meets at least once a year with the auditors.
The Remuneration Committee encompasses the
two NEDs and an executive director (the CEO)
who is an attending member. It sets and reviews
the scale and structure of the executive Directors’
remuneration packages, including share options
and terms of their service contracts. The
remuneration and the terms and conditions of the
non-executive Directors are determined by the
Directors with due regard to the interests of the
shareholders and the performance of the Group.
The Remuneration Committee also makes
recommendations to the Board concerning the
allocation of share options and/or treasury shares
to directors, managers and employees.
According to Articles of Association, remuneration
of the directors will be determined in general
meetings on the recommendation of the
Remuneration Committee. Any director performing
special or extraordinary services in the conduct of
the Company’s business or in discharge of his
duties as director, or who travels or resides abroad
in discharge of his duties as director may be paid
such extra remuneration as determined by the
directors, upon recommendation by the
Remuneration Committee. Executive Directors are
also entitled to receive a bonus every quarter
depending upon quarterly results. The bonus
consists of a certain amount or percentage which
is agreed and described in each Director’s service
agreements or contracts, as applicable, however,
Directors only receive such a bonus to the extent
profit meets certain pre-set budgetary figures.
In 2020 in line with EU requirements, ASBIS’
general meeting approved the remuneration policy
for the Board of Directors. The first statement on
remuneration was presented to the AGM in 2021,
the next one will be presented to the AGM in 2023.
Remuneration of the directors is included in the
Annual Report as well as in the Statement on
Board of Directors remuneration. Overall:
there are both fixed and variable
payments (the latter dependent on
completion of specific tasks set at the
beginning of the quarter),
there are recruitment incentives in the
form of relocation bonuses (case-by-case
basis),
termination payments exist as per local
regulation,
there are no clawbacks,
there are provident fund contributions from
both the company and the employee.
Consolidated Non-financial Report of ASBISc Enterprises Plc for 2022
27
A diverse Board
and management
pipeline
2021
Male
Female
Management
(SASB)
31
27
All other
1,337
684
2022
Male
Female
Management
(SASB)
31
27
All other
1,431
733
Our Board of Directors is diverse in terms of
experience and has assigned responsibilities.
Siarhei Kostevitch, the CEO, is primarily
responsible for carrying out strategic plans and
policies as established by the Board of Directors.
Constantinos Tziamalis, Deputy CEO, has the
primary responsibility for the accounts receivable
and supervision of Credit Control Department. He
is also in charge of the Investor Relations
department. On top, Constantions, is also
responsible for risk identification and mitigation,
and climate change and environment protection.
Marios Christou, the CFO of the Group, is
responsible for handling of funds, keeping financial
records and financial planning of the Company. In
addition, he controls the Treasury Department
which is concerned with the receipt, custody,
investment and disbursement of corporate funds,
as well as borrowings. Julia Prihodko, Chief
Human Relations Officer, manages and provides
strategy on the people function for a Group, leads
the implementation of HR policies and programs.
Competences of our non-executive directives are
also diverse. Maria Petridou has a financial
background while Tasos A. Panteli has a legal
background. ASBIS directors have a diverse
background and experience and offer a proper
representation of stakeholders’ views.
As a Company we understand that various views
can contribute to ASBIS using all opportunities
while taking all risks into account. At the end of
2022 and 2021, there were two women on ASBIS
board – one was an Executive Director and one a
Non-executive Director. As a result, women
constitute 30% of our Board of Directors.
As gender diversity is important to us, we are
working on the pipeline of women in senior
positions. If we take all the boards of our
subsidiaries into account, as many as 17 women
sit on our boards, which translates into a sizeable
49% share. The picture also looks favourably if we
look at split of management (understood as in
SASB as board plus store managers) where at the
end of 2022 47% (stable YoY) share were women
versus 34% share among remaining employees.
Ethnic diversity at ASBIS is growing YoY, with
Hispanic, Afro-American, Asian employees being
present.
2021
Asian White
Management
(SASB)
3 55
All other
34 1,987
2022
Asian White
Management
(SASB)
4 61
All other
35 2,110
2021
Black Hispanic
Management
(SASB)
0 0
All other
0 0
2022
Black Hispanic
Management
(SASB)
4 2
All other
5 1
Consolidated Non-financial Report of ASBISc Enterprises Plc for 2022
28
CORPORATE GOVERNANCE
APPOINTS
Non-executive officers
supervise the decisions taken by the executive directors,
support the Company with their experience and independent
judgement
Executives
Non-
executives
Siarhei Kostevitch
Chairman, Chief Executive Officer
Constantinos Tziamalis
Deputy CEO
Marios Christou
Chief Financial Officer
Julia Prihodko
Chief Human Relations Officer
Tasos A.Pantelli, Non-executive Director
BoD excl. CEO
1.8%
Other free-float
61.3%
TOTAL
100.0%
approves the annual financial statements of the Company,
decides on profit distribution (dividend),
appoints Board of Directors (both executive and non-
executive officers)
Executive officers
set the strategy for the Company,
supervise all the key elements of the Company’s business:
operations, finance, risk, plans
SHAREHOLDERS’ MEETING
(gathers at least once a year)
BOARD OF DIRECTORS
(consists of at least 3 directors)
Maria Petridou, Non-executive Director
CEO & Founder
36.9%
Consolidated Non-financial Report of ASBISc Enterprises Plc for 2022
29
Board evaluation
is conducted by
shareholders
We also care for board stability. Our board has
been relatively stable over the last five years with
the rotation level (understood as changes in
persons holding those positions) reaching 17% in
that period. Specifically, board rotation reached
0% in 2022.
The Board of Directors together with extended
management team is responsible for preparation
of ASBIS mission, vision, values and strategy. The
Board of Directors has created a sub committee
led by the HR director which ensures that
organization shows its sensitivity to economy,
environment and people and through this ensures
that our employees are fully aware and undertake
all actions to follow these processes. The HR team
is presenting the results of the outcomes of these
processes (which derive from surveys conducted
internally) to the Board of Directors and based on
the results actions are proposed. The Board of
Directors has set Key Performance Indicators
(KPIs) for all processes and these are reviewed
once per quarter.
Each member of the Board of Directors is assigned
specific responsibilities and oversees certain
functions of the Group. These responsibilities are
further delegated to departmental managers and
from there on to lower-level personnel. The
communication between the hierarchy levels is
very frequent and any issues that arise are
reported immediately. The Board is always very
approachable and in constant communication with
the employees.
The Board of Directors is also responsible for
reviewing and approving the sustainability
information enclosed in the Non-financial Report
as well as the material topics. It also strives to
communicate and discuss sustainability topics with
employees.
Evaluation of the Board of Directors actions is
conducted by the shareholders who grant
discharge to the directors for their actions in a
given year. So far the Board’s performance has not
been examined and reviewed by an independent
party.
Consolidated Non-financial Report of ASBISc Enterprises Plc for 2022
30
Board of Directors
Executive Non-Executive
Siarhei Kostevitch
CEO
Constantinos Tziamalis
Deputy CEO
Marios Christou
CFO
Julia Prihodko
CHRO
Tasos Panteli Maria Petridou
Organizational strategy
Capital allocation decisions
Leadership
Business risk management
Investor relations
Climate risk management
Financial management
Financial reporting
Treasury operations
Audit committee
Human resources
Audit Committee
Remuneration Committee
Audit Committee
Remuneration Committee
Delegation to:
Business Unit Leaders
Product Line Managers
Delegation to:
Credit Controllers
FX Risk Managers
CSR team
Investors relations team
Delegation to:
Financial Controllers
Treasury team
Delegation to:
HR managers
Consolidated Non-financial Report of ASBISc Enterprises Plc for 2022
31
Stakeholders
All stakeholders
are important to
ASBIS
[GRI 2-29, 3-1, 3-2, 3-3]
At ASBIS we take all our stakeholders into account
while conducting our business operations. When
preparing this Report the Board of Directors
analysed and confirmed that the earlier identified
stakeholder groups remained valid despite
pandemics and war in the Ukraine.
The stakeholder groups were selected for the
purpose of the first Non-financial Report taking into
account several criteria. First, based on whether
they are external or internal to the Company.
Secondly, we looked at their interest in the
Company, whether they contact us regularly and
what type of information they seek. Thirdly, we
analyzed the impact they have on our Company.
Fourthly, we analyzed what impact we have on
them.
As a result, seven groups of stakeholders were
identified: capital market participants (analysts and
investors) and financing institutions (banks,
insurers, factoring companies), employees, local
societies, end customers, suppliers and service
providers, business partners as well as the
governing and public institutions.
At the beginning of 2021 ASBIS updated the
stakeholder materiality matrix via an on-line
survey. Based on this survey, ASBIS identified
matters that: (1) are most important to
stakeholders and (2) that stakeholders believe are
going to have the strongest impact on ASBIS
business model. The Board of Directors reviewed
this materiality matrix and indicated it is up to date
and will be used for the 2022 Report.
The survey encompassed matters from six broad
areas that are reported by ASBIS: (1) employee
and social issues, (2) environmental and climate
issues, (3) financial elements and risk
management, (4) product and customer
experience, (5) legal and ethical matters and (6)
relations with local communities.
As presented below, stakeholders differed in
assessment of importance and impact of those six
areas.
Area
Materiality
Impact
Employee and social issues
3.3 3.3
Environmental and climate
issues
2.9 3.1
Financial elements and risk
management
4.1 4.2
Product and customer
experience
3.9 4.0
Legal and ethical matters
4.3 4.3
Relations with local
communities
3.3 3.1
Consolidated Non-financial Report of ASBISc Enterprises Plc for 2022
32
Legal and ethical
matters were of
highest
importance to
stakeholders
Within the 2021 stakeholder survey, participants
were asked to rate several topics under each area.
For each topic they were asked to state the
importance of that topic to them and the scale of
possible impact of that matter on ASBIS’
operations in upcoming years. The rating was from
0 (zero, least important, the smallest impact) to 5
(five, most important, the strongest impact).
The survey revealed that the most important areas
for stakeholders are also the ones stakeholders
expect to have the strongest impact on ASBIS in
upcoming years. Two areas with the highest
number of points are: (1) financial matters and risk
management and (2) legal and ethical matters.
Within the financial matters and risk management
financial stability ranked the highest both in terms
of importance and impact. It was followed by
building shareholder value and reporting
transparency. Within the legal and ethical matters
cybersecurity and data protection were rated
above strong corporate governance and ethical
practices throughout the value chain in terms of
impact on ASBIS’ operations.
Answers in relation to employee and social matters
pointed to fair and decent employment conditions
throughout the value chain as most important and
with the highest impact. These were followed by
equal development opportunities for all employees
and then employment stability. Within the relations
with local communities area, creating new jobs and
opportunities scored the highest.
Product and customer experience area was rated
higher both in terms of importance and impact than
environmental and climate issues. Within the
product and customer experience area two
elements were highlighted by stakeholders: long-
term relations with suppliers and quality of
products distributed. Within the environmental and
climate impact sustainable development policy
with targets came in first.
ASBIS will continue to monitor aspects of its
operations that are of high importance to
stakeholders and those that stakeholders believe
will be most crucial to its business model. ASBIS
Board of Directors has confirmed that the material
topics are up to date and that a new materiality
assessment was not needed.
Consolidated Non-financial Report of ASBISc Enterprises Plc for 2022
33
ASBIS STAKEHOLDERS
ASBIS
Employees
End-customers
Business partners
Capital market
participants and financial
institutions
Governing and
public institutions
Suppliers and service providers
Local societies
Consolidated Non-financial Report of ASBISc Enterprises Plc for 2022
34
Capital market participants
and financial institutions
Suppliers
and service providers
End-customers Business partners Employees
Governing and public institutions
Local societies
Who are
they?
This is a varied group of stakeholders.
Capital market participants include: analyst
issuing recommendations for ASBIS,
institutional investors (mutual funds and
pension funds, Polish and international
ones) and
individual
investors. Financial
institutions include insurers, banks as well
as factoring companies.
Suppliers are companies from
which we source goods that we
re
sell later. We co-
operate with
suppliers who produce
for us our
private label products
as well as
with suppliers from which we
obtain third party goods, e.g. OEM
(original equipment
manufacturers). Service providers
include logistics operators that
transport the goods from our
distribution centers to our
customers.
People who ultimately use
the products that we are
selling, both our private
labels as well as the third
part
y
hardware and software.
Also, people coming directly
into our Apple Premium
Reseller stores are also our
end
-customers.
Business partners other
than our suppliers are
vendors/ resellers to whom
we sell our goods, large
retail networks to which we
also deliver our products
as wel
l as enterprises.
These are a diverse group, as
ASBIS’ operations are
conducted in 4 region
s
of the
EMEA markets. On top, the
Group’s employees have
different functions, ranging from
administration and finance, to
logistics and management,
marketing and
sales.
The governing bodies and public
institutions are an important
stakeholder of ASBIS. These
include not only institutions based
in Cyprus, where the headquarters
are located, but in each of the
countries present and especially in
Poland (in Warsaw)
, w
here ASBIS’
shares are listed.
Local societies for ASBIS
are located in Cyprus, i.e.
where the Company’s
headquarters are situated.
We treat families of our
employees as our local
stakeholders.
Why are they
important to
us?
Shareholders (investors) are the owners of
our Company. Analysts issue reports and
value our Company, while financing
institutions support our development by
financing part of our undertakings and
insuring our receivables.
Suppliers are an important part of
our value chain. From our
suppliers we can obtain products
that we later sell and resell which
are key to our business and can
constitute our competitive
advantage.
Service providers
deliver the products to business
partners
and end-customers.
Foreseeing and meeting the
needs and w
ishes of
end-
customers is key to ASBIS
business model and well-
being.
Thanks to business
partners ASBIS can exists.
These are the entities to
which we sell goods and
products.
The Group’s employees are the
most important internal
stakeholders. ASBIS operates
mostly
thanks to them.
ASBIS is a transparent Company,
abiding the law
s
in each of the
countries of operations. Proper
relations with all institutions in all
countries are key to ASBIS’ well-
being.
People working and living
close to Limassol and on
Cyprus as well as their
families.
How do we
engage?
Building the Company’s value is a priority
to Board of Directors and is a key factor
while deciding on taking on new projects.
The Board of Directors is focused on
transparency in its relations with the
stakeholders. Each quarter ASBIS
prepares a comprehensive financial report
together with management’s analysis.
There is a meeting in Warsaw (place of
listing)
or videoconference
after each
quarterly numbers publication, during
which top executives present key
developments
and the Company’s outlook
for the next quarters. ASBIS also
participates in investors’ conferences,
where one
-on-
one and group meetings are
held. The Board of Directors is responsive
to the needs of shareholders, e.g. ASBIS
introduced a policy of
reporting
monthly
sales data via a current report. Top
executives also provide all necessary
information to financing institutions and
conduct one-on-one meetings.
ASBIS focuses on long-term
relations with
its
suppliers, based
on mutual trust, respect and
understanding of one another’s
needs a
nd constraints.
Seeing that
fighting bribery and corruption as
well as HR policies are important,
we have formalized them on the
Group level.
End-customer satisfaction is
of high importance to ASBIS.
We focus our actions so that
we deliver the best possible
products for the best
possible price. Thus, we
focus on the quality of
products and minimization of
warranties. Should these
materialize, we aim for the
warranty process
to be as
smooth as possible (we have
an influence on this in case
of our private labels). We
believe that by selling better
quality products we protect
the environment as we limit
electronic waste.
The Group maintains long-
term relationships with all
key
vendors,
resellers and
retail networks in all the
regions of its operations.
ASBIS’ management team is
focused on
providing best
possible conditions to its
employees. The managers run
an open dialog, monitor the
performance regularly and give
constructive feedback. We also
offer
development possibilities
and market remuneration
supplemented
by perks.
The Company pays all due taxes
and social payments and provides
all necessary reports describing its
operations. This
sixth Non-
financial
R
eport
is an example of ASBIS’
transparent and outgoing
approach.
ASBIS is an important
employer in the Limassol
region
in Cyprus.
Families
of our employees benefit
from the stable
employment and good
working conditions
that we
provide. Each year ASBIS
also donates money to
charities
and engages in
initiatives that are
important to locals
.
Consolidated Non-financial Report of ASBISc Enterprises Plc for 2022
35
ASBIS STAKEHOLDER SURVEY
3.0
4.0
5.0
3.0 4.0
5.0
1
2
10
4
5
6
8
7
3
9
MATTERS IMPORTANT FOR STAKEHOLDERS
MATTERS WITH HIGH IMPACT
Employee and social issues
1
Fair and decent employment conditions
Environmental and climate issues
2
Sustainable development policy
with targets
Product and customer experience
3
Financial stability
4
Transparency of reporting
5
Building shareholder value
Financial elements and risk management
6
Long
-term relations with suppliers
7
Quality of products distributed
Legal and ethical matters
8
Strong corporate governance
9
Cybersecurity and data protection
Relations with local communities
10
Creating new jobs and opportunities
in the region
Consolidated Non-financial Report of ASBISc Enterprises Plc for 2022
36
Human capital and employee policies
We are honest
What we say is true and
forthcoming. We are open
and transparent in our
communications with each
other, our partners and
customers.
[GRI 2-7, 2-8, 2-30, 401-1,
404-3, 405-1, 405-2]
Our employees
form the human capital that powers
our organization. Thanks to their commitment we
can run our operations, develop our intellectual,
social and financial capital. ASBIS’ future depends
on employees’ know-how, engagement, flexibility
and ability to cope with everyday situations.
HUMAN CAPITAL
We operate in some 60 countries and our
employees are located in 28 countries, in which we
hold subsidiaries. Countries we operate fall in
different regions with different cultures and
religions. Only some 10% of our employees work
for the parent company, with the balance working
for subsidiaries. In 2022, we employed on average
2,222 people, up 7% YoY.
AVERAGE NUMBER OF EMPLOYEES
2022 EMPLOYEES BY FUNCTIONS
2021 EMPLOYEES BY FUNCTIONS
167
220
2,079 2,222
2021 2022
Parent company Group employees
Sales and
marketing
,
1,213
Administration
and IT, 338
Finance,
200
Logistics,
471
Sales and
marketing,
1,093
Administration
and IT, 358
Finance,
197
Logistics,
431
Consolidated Non-financial Report of ASBISc Enterprises Plc for 2022
37
We are diverse in
terms of
nationalities,
gender and age
The most common form of employment at ASBIS
is a permanent position – it applied to some 98%
of employees in 2022, stable YoY. We do not have
employees with non-guaranteed working hours per
day as well as part time employees. We had 224
contractors at the end of 2022.
More than 60% of our employees are employed in
the FSU region. The second largest region based
on employment is the CEE region, which employed
some 32% of average number of employees in
2022, leaving the MEA and other regions with 3%
and 4% of headcount, respectively.
2022 AVERAGE EMPLOYEES
BY REGIONS
ASBIS employees are diverse in terms of age. In
2022 some 66% of our employees were between
30 to 50 years old, while around 25% were below
30 years old. On top, some 34% of our employees
in 2022 were women (stable YoY).
2022 AVEARGE EMPLOYEES BY AGE
In 2022 we hired on average 666 people, the
majority also in the FSU region. At the same time,
366 people left ASBIS in 2022. We calculate
voluntary and involuntary turnover of our
employees in stores. In 2022, the voluntary
turnover in stores reached c.7% and involuntary
c.11%. Overall, on the Group level rotation
reached 16%, out of which 7% was the voluntary
turnover and 10% involuntary.
We have a comprehensive HR Management
Policy at the Group level to standardize processes
related to Human Resources. Our HR
Management Policy encompasses six key topics:
hiring, team building, motivation, leadership,
diversity and anti-mobbing. On top, it also
addresses employer branding actions.
FSU
61%
CEE
32%
MEA
3%
Other
4%
below 30
years old
25%
30 years
old to 50
66%
above 50
years old
9%
Consolidated Non-financial Report of ASBISc Enterprises Plc for 2022
38
We promote
diversity
We recognize that each of
us is different and that
each person deserves
respect. We promote
diversity in opinions and in
workforce. We employ
people of various
nationalities, cultures,
religions, ages and
gender.
The aim of the hiring process is to find the right
candidates to fill in for our vacancies and to identify
and attract people who will be building the
Company with us. The recruitment process is
oriented on: (1) judging the candidates based on
their competences, (2) assuring objectivity of
assessment, also by using IT tools, (3) giving equal
opportunities to candidates regardless of their
gender, social or marital status, age or disabilities,
and (4) respecting their rights and relevant laws.
While filling in a position we resort to internal and
external recruitment. We search for employees
from within ASBIS to allow them to develop as well
as advertise the opening outside. If possible, we
prioritize internal promotions versus external to
promote long-term commitments. While searching
for new talents we rely on our Employer Branding
initiatives. To increase the transparency and
objectivity of the hiring process each candidate has
at least two meetings with ASBIS managers with
different levels of seniority, before a decision is
taken.
We understand that we are stronger as a team. To
build and maintain our team we need to focus on:
proper onboarding of our new hires, motivation of
our employees and building leaders that will shape
the future of ASBIS. We want our new hires to feel
welcomed and needed the moment they cross the
doors of ASBIS offices. We believe this is a key to
retaining them.
It is our aim to acknowledge all employees with our
Mission and Vision, corporate culture as well as to
help them identify new roles and responsibilities.
We aim to ensure that our employees are
equipped with relevant tools and resources to
perform their tasks and that their adaptation is
effective and comfortable. The welcome package
for each of our new employees includes a:
welcome letter, employment contract, information
form, details of the Company’s structure, job
description, documents that need to be filled in, a
handbook with corporate policies and a list of
trainings to be performed. Our policies are aimed
to shorten the time it takes an employee to become
an effective member of our team.
Hire the best
Build a team
Consolidated Non-financial Report of ASBISc Enterprises Plc for 2022
39
We are team
players
Every employee is
important to us. We
recognize that together we
can achieve more. We
foster our team spirit.
We believe that the best way to motivate
employees it to: offer a transparent career path,
fair and transparent remuneration as well as
development and training opportunities. Career
paths depend on the place of start and area where
they are originated. Employees are informed about
their potential career path the moment they start
work. Remuneration brackets are set for each
position. Employees are motivated by bonuses
based on their achievements. In order to make
sure that we pay market salaries, we try to keep
up-to-date with the latest developments on the
markets where we hold subsidiaries and we do our
research in job portals.
Motivation is also linked with a fair assessment.
We run an assessment model which for each level
of our hierarchy focuses on hard criteria
(effectiveness measured by KPIs) and soft criteria
(like behavior, environment and empowerment).
We also want the salaries to include not only a
fixed but also a variable component, to align the
remuneration of employees with the performance
of the whole Company. The variable part of the
remuneration relates to profitability bonus and/or
commission and management bonus. We have an
in-house grading system.
The Company provides access for all employees
to its IT platform and managers can assign their
subordinates certain tasks or the employees log
their tasks on a quarterly basis. From the results of
their tasks, managers can check the employees’
progress and if these are visible, the managers can
grant a bonus on a quarterly basis. This allows
employees to work effectively and obtain
constructive feedback.
In 2022 average salary at ASBIS Group came in at
US$29.2 ths annually, up 3% YoY. Remuneration
depends on many factors, yet ASBIS does not pay
minimum wage in countries present (neither at
retail stores nor warehouses). We also do not pay
by the hour thus do not present this SASB
indicator, as it is not material to our business
model. We also emphasise a fair remuneration as
we want our employees to feel and be treated fairly
in all respect, including their remuneration. As a
result, we calculate and look at the gender pay gap
ratio both at the Group level as well as the key
functional units. We believe that all our employees
are fairly remunerated and the 29% gender pay
gap ratio identified for 2022 results mostly from the
structure of the Group’s line management and
years of experience. Women constitute 34% of
ASBIS’ employees and 30% of Board of Directors.
Coincidentally, the average years of experience of
men is higher than that of women. As time goes by,
Keep them
motivated
Consolidated Non-financial Report of ASBISc Enterprises Plc for 2022
40
and women employees choose to stay in the
company, they will gain more experience and the
gap will be closing. As such we see higher gender
pay gap ratio in sales, marketing than in logistics
and finance departments. Still, the Board of
Directors is devoted to elimination of gender pay
gap ratio.
Also, as part of the 'Great place to work'
certification that the parent company obtained
second year in a row, employees were asked to
evaluate the Company in various ways and one of
them was remuneration. Additionally, the Board of
Directors is currently examining further ways to
capture the employees' opinion on remuneration
(e.g. a survey specific on this matter).
We understand that salaries are just one part of job
satisfaction. We want our employees to have an
open line of communication with their managers.
The aim is not only to pass constructive feedback
down the line but also for employees to be able to
speak openly to their managers and communicate
issues or inefficiencies and give their feedback.
The Company organizes meetings with the
management team on a quarterly basis in order to
discuss issues and new developments with all the
general managers of the Group. We also offer
perks like: health insurance, Provident Fund in
certain countries, Christmas gifts, gatherings for
Christmas and in some cases discount card for
some restaurants and products sold.
Diversity is important for us as it is embedded in
our everyday operations. We aim to have a
balanced approach in terms of age and gender.
We recognize that each employee is unique and
has own characteristics and we wish to present all
of them with development opportunities. We want
ASBIS to be an inclusive workplace where people
of all ages, religions, origins will find a common
place to work and develop for the benefit of all
ASBIS stakeholders and to have equal
opportunities.
We encourage diversity in opinions. We believe
that exchange of ideas brings our Company
forward. We build teams of all nationalities and
ages as we wish to use the knowledge of our
experienced employees and the energy and fresh
ideas from the younger generations. It is our aim
to have a balanced gender approach for each
position which is to be filled. If balance is not
possible, we will still aim to have at least one
representative of each gender. We build a
workplace which is full of mutual respect between
employees and friendly atmosphere.
Promote
diversity
Consolidated Non-financial Report of ASBISc Enterprises Plc for 2022
41
It is our priority for ASBIS to be a place free from
any discrimination, mobbing and illegal actions.
We are strongly against employees abusing their
positions and acting illegally, unfairly and not in a
dignified manner. This includes any forms of
harassment including proliferation of materials on
employees and their personal data. We only allow
constructive feedback. We do not tolerate sexual
harassment, any other forms of harassment. We
say no to aggressive behaviors. We encourage our
employees to report any such violations and we
assure them anonymity and legal assistance.
Finally, we would like to underline that ASBIS
considers bullying unacceptable and it is not
tolerated under any circumstances. Although we
have not faced such situations to date, it is clear to
us that any employee who will be found in violation
of the policy will be disciplined.
There were no monetary losses as a result of legal
proceedings associated with labour law violations
in 2022 and 2021. Due to fair treatment of
employees at ASBIS there was no need to create
trade unions. At the end of 2022 there were no
trade unions at ASBIS (stable YoY).
Prohibit
mobbing
Consolidated Non-financial Report of ASBISc Enterprises Plc for 2022
42
Intellectual capital
Our intellectual
capital supports
our financial
capital
Over the 30+ years of ASBIS’ operations we have
developed a sizeable portion of intellectual capital.
The two most important elements include: IT4Profit
platform and our private labels which support our
financial and social capital.
IT4Profit is our online supply chain management
software owned by us, which was internally
developed, and which we continuously improve.
We use IT4Profit to effectively manage the flow of
goods within our distribution network. This system
collaborates and exchanges business data with
our key suppliers, master distribution centres,
subsidiaries and customers. Local subsidiaries
place their orders online through our e-market
place on www.IT4Profit.com and receive their
goods directly from one of the two distribution
centres. In addition, local logistics staff use this
online system to ensure that every online order is
picked, packed, and shipped within the allocated
timeframe. IT4Profit provides the following
functions:
interconnectivity with suppliers;
B2B and B2C online shops to our customers
for both front and back-office administration;
online supply chain management;
statistics for product pricing and product
content management,
comprehensive operational reports and a
balanced scorecards management
system.
ASBIS owns a portfolio of private labels with each
own brand having a portfolio of popular and
innovative products, meeting the needs of our
customers. In the countries where ASBIS
operates, we sell products under our own brands
with improved characteristics and capabilities at
competitive prices. The portfolio includes:
Canyon is a brand with 20-years of history,
product portfolio includes mobile and PC
accessories, wearable devices such as smart
watches and fitness trackers,
LORGAR
is a brand of highly functional
gaming devices for advanced gamers who
value and enjoy gaming as their hobby,
AENO is focused on smart small domestic
appliances,
Prestigio is an international brand offering a
wide range of consumer electronics for
home, education, and office for 20 years,
Prestigio Solutions™ is an international
brand of technological solutions for business
and education,
Perenio is innovative, all-around
technological brand specializing in the
Consolidated Non-financial Report of ASBISc Enterprises Plc for 2022
43
Awards obtained
build our
intellectual capital
Internet of Things, Smart Home/Office,
Smart Health,
CRON ROBOTICS
is based on two major
segments: distribution of collaborative robots
(cobots) from leading global brands in the
sector as well as own robotic platforms under
own brand CRON ROBOTICS.
ASBIS obtained many awards over the past years,
from our business partners and independent
rating agencies. Below we present selected
awards from 2022 and comparable period.
Date
Award details
Date
Award details
October 2022
ASBIS Middle East won a prestigious
award during the ICT Champion
Awards event in Dubai.
March 2021
Second place in WSE listed Company
of the Year 2020 in the
category
“Success in 2020” organized by “Puls
Biznesu” newswire
October 2022
ASBIS Middle East won Distributor of
the Year for PC and Compute in GEC
Awards 2022
in Dubai.
July 2021
ASBIS became the Great Place to
Work® Certified company
November 2022
ASBIS Middle East
was
chosen as the
Best Volume Distributor 2022 at
Reseller Middle East’s Partner
Excellence Awards.
September 2021
ASBIS became part of WIG
-ESG
index which brings together listed on
WSE companies recognized as
socially responsible
November 2022
ASBIS Middle East
won the Best
Component Distributor award during
the “Champion of the Channel”
contest
.
September 2021
In the third edition of the Companies
Climate Awareness Survey, ASBIS
was among the 7 companies with the
highest ratings,
receiving the title
Climate Aware Company
December 2022
Asbis
Slovakia was named as the
largest distributor of HP
products in
2022
.
October 2021
ASBIS CFO, Marios Christou, was
awarded the title of “The CFO of the
Year” by EY at the 17
th
CFO
Management Forum & Awards
Consolidated Non-financial Report of ASBISc Enterprises Plc for 2022
44
We develop our
employees
through training
[GRI 404-1]
2022
Persons
trained
Training
hours
Average
Women
1,165
8,542
7.3
Men
661
4,856
7.4
Total
1,826
13,398
7.3
Admin
129 871
6.8
Sales
996 9145
9.2
Logistics
167 1028
6.2
Marketing
194 1659
8.6
Finance
130 397
3.1
IT
147 151
1.0
Warehouse
63 147
2.3
Total
1,826
13,398
7.3
To build our intellectual capital we need to build
leaders and develop our employees, as we believe
that trainings are the key to ASBIS well-being and
long-term development. Talent identification is
important for us as it helps us to seek and develop
leaders, making sure that we have enough talents
in the organization to support its future growth.
Thus, we develop both of activities to improve all
skills. We develop and promote knowledge sharing
which is effective in developing skills. We have a
training plan and matrix in place which indicates
what trainings should be undertaken depending on
the seniority of the person. We aim to create a
team of effective managers.
ASBIS ensures that the employees have the
required skills and knowledge to undertake their
tasks. Our HR department is responsible for
arranging trainings for employees as per the
request of managers or directors. Trainings
depend on the department, employees’
performance and new market trends and are fully
covered by ASBIS (even if these require travelling
abroad). We see value in financing international
trainings and certificates as this improves the
performance of our employees and makes the
Company more prepared for market changes.
We expand the intellectual capital of the
organization in various ways. One of the ways is
through dedicated trainings. The Group organizes
frequent seminars on a wide range of fields. There
is a number of employees fully dedicated on this
matter. There is an online portal which includes a
library with all information one could need for their
job, like policies, manuals, business processes
etc. In addition, when needed, the directors and
departmental managers perform 1-to-1 meetings
with employees in order to pass on their
knowledge and skills in a more effective manner.
The Group also established an online learning
system, where new courses are uploaded
continuously. Some courses are mandatory, while
other are optional. All newcomers need to
complete a certain number of courses, based on
their department and position. On average, sales
and marketing employees complete the most
training hours, since it is them who need to keep
up to date with the very frequent developments in
the IT industry.
Develop
leaders
Consolidated Non-financial Report of ASBISc Enterprises Plc for 2022
45
Social capital and policies
Social capital is
ASBIS license to
operate
[GRI 2-28, 203-1, 413-1]
ASBIS’ social capital consists of our strong
reputation among our customers, suppliers,
investors as well as our relations and impacts on
local societies. Our strong reputation is
consequence of doing what is right ethically and
legally, on all markets we operate.
We do not have a written social policy but in our
actions, we are guided by the 10 Principles. One
aspect our social impact relates to families of our
employees. We offer gifts to kids of our employees
(until these reach 18 years old) especially in the
Christmas season. We also offer our employees
opportunities to act in frames of corporate
volunteering actions (e.g., some of them are blood
donors).
The second aspect of our social impact is
supporting people in need. We support various
charities and non-profit organizations, sponsor
teams and promote sports. In addition, we support
individuals in need by supporting state-run
hospitals and cancer patients. Another example
can be ASBIS being a sponsor to the Junior
Achievement Startup Programme Cyprus (JA
Startup Programme), which gives university
students (18 to 30 years old) the opportunity to
experience running their own company, giving
them an insight into how their talents could be used
to set up a business for themselves.
We take a decentralized approach to community
engagement and investment allowing our
subsidiaries to conduct actions they believe are
proper and needed. That need differs on
circumstances and these have been dynamically
changing over the last years.
Year 2020 and 2021 have been marked by the
pandemics. Thus, in 2020 ASBIS donated 1,000
light laptops PCs to the Association of Primary
School Teachers in Cyprus (POED) and the Board
of Public Schools in Limassol. They were used for
on-line education and to improve the knowledge
and skills of primary school students aged 6-12
who, for economic reasons, could not afford to buy
their own computer. In 2021 we donated 50 iPads
as a vaccination incentive.
During the pandemics, to minimize the probability
of COVID-19 infections in our offices, all
employees were encouraged to work from home
when possible and for that, all the necessary
equipment was provided. Extra flexibility was
provided to employees with small children. In
2021, we introduced free covid tests to employees
twice a week and flexible "work from home"
scheme. Partial “work from home” policy was still
in place in 2022, with limited employee rotation and
relaxed office presence rules.
Consolidated Non-financial Report of ASBISc Enterprises Plc for 2022
46
We support those
in need
During 2022, our priority has been set on the war
in Ukraine, where we had more than 300
employees at the time of the Russian attack. The
war greatly affected their lives and the Company
helped them by facilitating and paying for
relocations (e.g. providing logistical, legal,
financial, and humanitarian aid), maintaining their
employment despite a loss of revenues and paying
their salaries in full. A shelter was constructed at
our Ukrainian office and various donations were
made. Thanks to our local presence in many EU
countries and personal involvement of our
employees, we were able to react quickly and
provide the needed support.
Our significant effort also went to providing
humanitarian aid to Ukraine, while working with our
offices in Poland, Slovakia and Cyprus. ASBIS has
provided 10 ambulances and other medical
equipment to hospitals across Ukraine. In addition,
5,000 ipads were donated to Ukrainian children
which will contribute to their educational
development. The total donations provided by
ASBIS (including these related with Ukraine)
exceeded US$ 3m (sizably higher than US$ 215
ths in 2021).
We also look at our social impact in a broader
manner and recognize that we favourably
contribute to local economies in countries and
communities where we run our operations, also in
the new countries entered in 2022 and in the first
months of 2023. At the same time, we believe that
our growing portfolio of affordable products
positively affects the lives of end-consumers using
them, while the high-quality of those products
reduces electronic waste.
To further strengthen our social capital, we engage
in activities of various associations. Both in Cyprus
and Limassol where ASBIS headquarters are
located as well as in Warsaw (Poland) where our
shares are listed. We present the list of these
associations below.
Consolidated Non-financial Report of ASBISc Enterprises Plc for 2022
47
We engage in
activities of
various
associations
CYPRUS CHAMBER OF COMMERCE AND INDUSTRY (CCCI)
LIMASSOL CHAMBER OF COMMERCE AND INDUSTRY (LCCI)
is a private corporate body functioning under special law and is
financially independent, free of any influence by the state. The CCCI
is the union of Cypriot businessmen, the interests of whom it
promotes by submitting to the government and the Parliament the
members’ positions on matters in which they are involved, while,
through its participation in tripartite bodies and committees, it
conveys and promotes the views of the business community. The
CCCI was founded in 1927 and in 1963, a new structure was
adopted, which remains in operation to date. The membership of the
CCCI exceeds 8,000 enterprises from the whole spectrum of
business activity. Affiliated to it are more than 140 Professional
Associations from the trade, industry and services sectors.
was established in its present form in 1962 and represented the first
concerted effort of the Limassol business community to have an
organisation to defend its interests and promote the economic
development of the Limassol district. From its very inception the
Limassol Chamber of Commerce & Industry has played a leading
role in the economic life of Limassol, either by operating as a
pressure group towards the realisation of vitally important economic
projects or by developing concrete initiatives of its own in that
direction. Over the years the Limassol Chamber has continued to be
at the forefront of initiatives aiming to achieve optimum economic
development for Limassol.
CYPRUS INTERNATIONAL BUSINESS ASSOCIATION (CIBA)
TECHISLAND IN CYPRUS
was established in 1992 as a registered not-for-profit company
limited by guarantee. CIBA came to existence on the initiative of a
number of expatriate business executives who had moved their
international operations to Cyprus in order to benefit from the island’s
strategic location, bridging Europe to Middle East Africa and the Far
East, as well as to take advantage of the island’s relaxed atmosphere
and Mediterranean climate and its rather simple but competitive and
effective tax regime. Ever since its creation, CIBA has gone to great
lengths to represent and safeguard the interests of the international
businesses, their international shareholders, managers and
personnel.
is an association of companies, which aims to: change the operating
environment and give the stakeholders of the tech industry a voice,
improve the working an
d living conditions for world-class talent, h
elp
raise awareness for the opportunities and growth in the tech and
innovation sectors in Cyprus, upport the ecosystem's development
and contribut
e to its international exposure, p
rovide a platform for its
members for CSR activities in education, health, ecological issues,
and societal issues.
POLISH ASSOCIATION OF LISTED COMPANIES
is a self-government organization of companies listed on the Warsaw Stock Exchange, in which the membership is voluntary. The Association
undertakes the works conducive to development of capital market through educational, promotion, and lobbying activities. It acts to integrate
the environment of securities issuers by organizing training and seminars; it represents common interest of this group of entities. The basic
method of Association’s work is to communicate to the market regulators the expectations concerning the improvement of securities market
performance, and to formulate the proposals to change legal regulations, which would increase the stock exchange attractiveness as a
place, where the capital for economic entities can be raised.
Consolidated Non-financial Report of ASBISc Enterprises Plc for 2022
48
Human rights and policies
We are
trustworthy
Our word is good. We
keep our commitments to
each other and to our
stakeholders. We do the
right thing without
compromise.
We use good
judgment
We think before we act.
We use our purpose,
values and ethical
guideline as decision
filters to guide our
behavior.
[GRI 2-23, 2-24, 2-27,
406-1, 418-1]
At ASBIS we recognize the importance of
preserving human rights in our value chain. We
believe in the right to self-determination, liberty,
due process of law, freedom of movement,
thought, religion, assembly and association.
Our Human Rights & Labor Policy sets forth
ASBIS’ global standards regarding The Code of
Labour Practices. This policy of labor practice sets
forth minimum standards for working time and
working conditions and provides for observance of
all of the core standards of the International Labor
Organisation including other applicable
Conventions. The policy provides a pledge by the
Company to observe these standards and to
require its contractors, subcontractors and
suppliers to observe these standards. It also
establishes ASBIS’ general responsibilities
concerning human rights, health management,
work safety, career management, employees’
rights etc.
We take our social responsibilities seriously. We
are committed to advancing human rights through
our policies and business activities, and to work
hard to ensure that the people who make our
products are treated fairly and with respect. Our
Employment Standards and Global Supplier
Standards cover company-owned operations as
well as our supplier partners. These policies
describe the workplace practices and ethical
behavior that we require for all workers such as:
(1) prohibiting child and forced labor, (2) ensuring
nondiscrimination and equal opportunity, (3)
supporting a harassment-free and violence-free
workplace, (4) prohibiting retaliation or any form of
physical or mental disciplinary practices, (5)
respecting workers’ right to freedom of association,
(6) ensuring compliance with laws governing
working hours and wages and (7) promoting
environmental protection, health and safety.
On top, our policy also addresses health
management and work safety conditions.
Maintaining and promoting the health, motivation
and performance of employees will secure the
Company’s competitiveness in the long-term.
Work safety is our priority. Employees are to be in
a safe environment, protected from hazards of the
job.
Lack of discrimination is visible in numbers. Total
amount of monetary losses as a result of legal
proceedings associated with employment
discrimination amounted to zero in 2022 and 2021.
So far, we have not had any incidents related to
human rights abuses. However, our policies say
that in case of any future incidents the HR
department or the line manager should inform the
Consolidated Non-financial Report of ASBISc Enterprises Plc for 2022
49
Select business
partners carefully
Choose those who share
our values and high
standards for legal and
ethical business practices.
Don’t let anyone damage
our reputation and our
brand by acting illegally or
unethically in ASBIS’s
name.
BoD and they should take action depending on the
situation. In case of serious situations, dismissal of
the employee as per the employment law could be
an option. The procedure of termination is
described in the employment contracts.
Our Whistleblowing Policy (in place since 2006,
updated in 2019) allows employees to
anonymously raise concerns about possible
wrongdoing to the BoD. Concerns must be
reported in writing. They can be delivered either to
one of the Executive Directors or via a publically
available email on the webpage. The policy is thus
aimed not only at employees but also at ASBIS
partners, contractors and consultants. It is ASBIS
intention to treat all reports seriously and assure
appropriate investigation of each reported manner.
The policy foresees that in case of a report, a
Whistleblowing Committee will be called. It will
consist of: two Executive Directors, Head of Legal
Department and Head of HR Department. All
whistleblower reports will be dealt with in strict
confidentiality. The Whistleblowing Committee will
process the report and decide whether or not to
start an enquiry in connection to the matter. The
whistleblower will be notified of this decision and
reasons on which it is based. Findings of the
Whistleblowing Committee will be presented to the
Executive Directors of ASBIS so that they decide
on further actions. Personal data processed will be
dealt in accordance with ASBIS Privacy Policy.
There were no whistleblowing incidents identified
in 2022 and in 2021.
ASBIS also has a Code of Conduct which sets
forth general guidance on how to carry out daily
activities in accordance with our purpose and
values, as well as in compliance with the
applicable legal requirements and ASBIS’s
policies, standards and ethical principles. The
Code includes 10 guiding principles (presented at
the beginning of this Report) which are
straightforward points written in an easy to
comprehend language and simple to follow for all
employees. The Code of Conduct also
encompasses ethical guidelines which are to
support employees in making the right choices.
The Code applies to everyone at ASBIS
worldwide. It promotes an honest and ethical
conduct, a safe working environment and
compliance with all governmental directives, laws,
rules and regulations.
Information security is managed by the Security
Committee. There are policies and best practices
in place that aim to minimize data security risks.
Some of them are the "principle of least privilege"
per service account and the "single entry point"
applied to most of IT services. In addition, the
implementation of "2-factor authentication" to our
IT services was finished in 2021, which further
increases data security. Moreover, our high
availability (HA) setups are based only on
enterprise grade solutions inclusive of vendor
support. Monitoring and notification systems help
us track any abnormal activity and respond quickly
when necessary.
Consolidated Non-financial Report of ASBISc Enterprises Plc for 2022
50
Data security is
important for
ASBIS
Data security risks are addressed by the IT
department, mostly as breach prevention. The IT
department deploys and supports its systems and
services according to known best practices and
continuously monitors integrity, productivity, and
user feedback. Any serious issues are reported to
IT management and if the issue is considered a
data security incident, it is escalated to the Security
Committee. Any significant incidents are discussed
in a Security Committee meeting.
The Security Committee was established in
November 2021 to manage the information and
data security within the ASBIS Group. In 2022
there were no data breaches, no incidents
involving personally identifiable information (PII)
and no customers were affected in any way (all
zero for 2021 as well).
In 2019 ASBIS’ BoD approved a Supplier Code of
Conduct. Contrary to tailor made internal
documents and policies, ASBIS decided to claim
compliance with RBA’s Code of Conduct in terms
of its requirements towards suppliers. Responsible
Business Alliance (formerly Electronic Industry
Citizenship Coalition, EICC) is an industry coalition
committed to creating shared value for businesses,
workers and communities. The alliance is open to
companies that manufacture or contract the
manufacture of electronic goods or a product in
which electronics are essential to the primary
functionality of the product, or supply materials
used in the electronics of those goods. The RBA is
comprised of more than 200 electronics, retail,
auto and toy companies. Selected members
include: AMD, Alphabet, Amazon, Apple, Cisco,
Citrix, Dell, Facebook, Fujitsu, HP, IBM, Intel,
Lenovo, Logitech, Microsoft, Phillips, Seagate, 3M,
Xerox.
Essentially all revenues in 2022 and in 2021 were
from products third-party certified to environmental
and/or social sustainability standards. Vast
majority of RBA’s members are ASBIS’ suppliers.
ASBIS’ position in the value chain of IT distribution
minimises its human rights risks as 94.1% of its
revenues comes from suppliers that are RBA’s
members. These are large companies, mostly
listed on NASDAQ.
2022 REVENUES BY SUPPLIERS
RBA
members,
94.1%
Other
suppliers,
5.9%
Consolidated Non-financial Report of ASBISc Enterprises Plc for 2022
51
RBA’s Code of
Conduct is a
guidance for
ASBIS suppliers
in all key areas of
their operations
The RBA Code of Conduct (version 7.0 from 2021) is
a comprehensive one, covering five crucial topics:
labour, health, environment, ethics and management
systems. The Labour part focuses on commitment to
upholding the human rights of workers. All workers
(whether permanent or temporary) should be free to
choose their employment, while child labour should
not be used at any stage of manufacturing. On top, a
workweek should not be more than 60 working hours,
while wages and benefits should be paid in line with
local laws, especially regarding minimal wages. The
Code underlines a strict commitment to humane
treatment of workers, non-discrimination and
freedom of association.
The Health and Safety part recognises that in
addition to minimising the incidence of work-related
injury and illness, a safe and health work
environment enhances the quality of products and
services. The Code thus concentrates on
occupational safety, emergency preparedness, and
minimisation of occupational injury and illness. That
is to be achieved, among others by industrial hygiene
and elimination of potential hazard, control of
physically demanding work and machine
safeguarding. Emphasis is also put on sanitation,
food and housing, as workers are to be provided with
access to clean toilets and potable water. Health and
safety communication should be carried out, among
others in the form of trainings.
The third part of the Code recognises that
environmental responsibility is integral to producing
world class products. As such, all required permits
should be obtained and kept, while reporting
requirements should be followed. On top, pollution is
to be prevented, among others by reducing resource
usage, minimisation of hazardous substances, solid
waste and air emissions. Companies are to manage
water and energy consumption, with the latter being
aimed at GHG emissions reduction (Scope 1 &2).
The Ethics section underlines that to achieve
success, companies need to uphold to the highest
ethical standards. Business integrity among others
means no to bribery and corruption which give an
improper advantage. All information should be
properly disclosed while intellectual property rights
respected. On top of fair business, advertising and
competition, companies are to protect each persons’
privacy and identity of whistleblowers.
The fifth part of RBA Code concentrates on
management systems. Compliant companies should
have systems in place that will assure compliance
with applicable laws and conformance with the Code
on top of risk identification and mitigation. Companies
claiming compliance with the Code should have
corporate social and environmental policies in place
and senior executives assigned to those topics to
show their accountability and responsibility.
Companies should have written targets with
objectives of improvement, conduct periodic self-
evaluation as well as keep documentation and proper
records.
Consolidated Non-financial Report of ASBISc Enterprises Plc for 2022
52
Natural capital and environmental policies
We are
responsible
We accept the
consequences of our
actions. We admit our
mistakes and quickly
correct them. We feel
responsible for the
environment and want to
grow sustainably.
[GRI 201-2, 302-1, 303-5,
304-1, 305-1, 305-2, 305-
3, 305-4, 416-1]
In ASBIS’ value chain natural capital is
transformed from natural resources used to
produce IT appliances by ASBIS suppliers to
products that ASBIS distributes. In its operations
ASBIS aims to minimize its impact on environment
and climate and takes climate risks and
opportunities into its plans.
USAGE OF CORPORATE CARS
We monitor and try to minimize our environmental
impact by looking into the Company’s operations.
We try to minimize the usage of paper by applying
electronic invoices as much as possible. We also
limit the usage of corporate vehicles and car fleet,
which are governed by our Corporate Car Policy.
These are available only to senior executives with
limits put on the value of car, while employees pay
for fuel.
Number of corporate cars
2021
2022
Own cars
68
65
Leased cars
81
92
Total
141
157
Under corporate cars we show not only own cars
but also include leased cars, over which our
employees have control of usage.
Type of corporate cars
2021
2022
Gasoline
48
62
Diesel
79
76
Hybrid
13
18
Electric
1
1
Total
141
157
The majority of cars are diesel, with gasoline being
the second most commonly used type of corporate
car. It is ASBIS aim to reduce the usage of diesel/
petrol cars and move towards hybrids. We have
introduced a new policy that all new cars must be
hybrid, which resulted in 5 more hybrids YoY.
Similar trends are visible in terms of kms travelled.
Kms travelled by
corporate cars (ths)
2021 2022
Gasoline
729.0
1,142.7
Diesel
1,591.5
1,826.9
Hybrid
159.4
466.9
Electric
11.8
12.5
Total
2,491.7
3,449.1
Consolidated Non-financial Report of ASBISc Enterprises Plc for 2022
53
We stick to the
law and our
policies
But that’s the minimum.
We make an effort to live
up to our values and
ethical principles as well.
The number of kilometers travelled by business
cars increased 38% YoY, due to growing number
of employees, more corporate cars and a rebound
in travelling post the two pandemic years. These
numbers do not include transfer of goods. Goods
from suppliers are sent by them to our distribution
centres. We use logistics operators to deliver
goods from our distribution centres to customers.
ELECTRICITY CONSUMPTION
ASBIS is also cautious in terms of electricity
consumption. Actions are undertaken to minimize
it, despite growing operations. Among other, we
use led lighting to lower electricity consumption.
In 2022 Group electricity consumption came in at
3.6 GWh, up 36%, much above revenues
dynamics, due to adding new companies into the
Group, growing number of employees and the
need to expand warehouse space. Electricity
consumption includes all offices from 28
subsidiaries and distribution centres and
warehouses. All electricity came from the grid – the
newly installed solar panels have not been
operational in 2022 thus none of the subsidiaries
has a direct source of renewables electricity.
PRODUCT QUALITY AND SAFETY
Our environmental and climate impact also results
from the products that we distribute and sell. All our
products are safe for our customers and end-
customers. The Group sells products
manufactured by big corporations that follow the
applicable regulation and comply with high
international standards. There were no products in
need for improvement in relation to health and
safety. The Company makes sure that producers
of goods distributed by ASBIS do not use improper
chemicals or hazardous materials. We obtain the
necessary certificates such as CE (Conformité
Européenne) and RoHS (Restrictions of
Hazardous Substances). We have our own
QA&QC (Quality Assurance and Quality Control)
team (25 people) in our Chinese and Czech offices
that conduct all the required and necessary tests.
It is in our best interest to distribute products which
are durable and meet the expectations of end-
customers. This limits customer complaints and
reduces the number and cost of warranties. When
products become defective within the
manufacturer’s warranty period due to a
production or material defect, ASBIS may choose,
at its own discretion, to deliver refurbished or new
products, to repair the products or to issue a credit
note. Warranties are especially important for
ASBIS in case of private labels, as we are then
ultimately responsible for the repair.
PACKAGING OF OUR PRODUCTS
We receive already packaged products from the
vendors such as Apple, Dell, Intel, AMD etc. all of
which are companies with very good
environmental record. In 2021, we have also seen
some of our vendors improve packaging,
Consolidated Non-financial Report of ASBISc Enterprises Plc for 2022
54
We aim to reduce
waste
among them Apple who reduced the size of all their
packaging, allowing for more items to be fitted on
the pallets, therefore minimizing the use of paper
and logistics cost which in turn contribute to even
lower carbon footprint.
What we do additionally is put overcarton over the
goods and place them on the pallets. Sometimes
we place most valuable goods inside wooden
boxes. For additional security we may use small
plastic crates (boxes). We mostly use vercarton,
wooden boxes, small plastic boxes as packaging.
We use exactly what is required. Overcarton and
wooden boxes are used only for the goods of the
highest value and only to destinations where such
security measures are needed. We use the cartons
(small boxes) received from vendors for our courier
deliveries, minimizing the quantity of additional
packaging and ways to minimize empty space in
pallets. But if needed we use empty cardboard
boxes or bubble foil. We are mainly a distributor
and have no direct impact on the actual packaging
of goods (retail packaging). We developed Green
packaging for our own brands. All packages used
at DC are made from recycled materials, while
plastic blisters and hooks have been replaced with
paper trays and hooks. ASBIS reuses the cartons
that come with the products purchased by our
vendors, which results in much lower carton
usage.
WASTE REDUCTION POLICIES
We recognize that electronic waste is harmful for
the environment and we try to recycle or dispose
of it in a proper way. According to current
regulations, especially WEEE Directive (Waste
Electrical and Electronic Equipment) electronic
waste disposal has to be paid by the company
which enters the product on the market. In ASBIS
case these are our subsidiaries, which are
registered in local organizations. They latter deal
with the matter. We do provide scrap operations, it
is done by specialized companies.
We host battery recycling points in our offices
where employees can bring used up batteries to
be recycled. Recycling is performed by specialized
organizations in agreement with the government.
We also conduct standard recycling of waste in
offices. We take part in recycling initiatives, like
“Plastic caps for the Future”, where caps are sold
for recycling with the profits donated to charities.
We have certain teams of professionals who
dismantle products to be discarded (mostly PC
tablets and smartphones) by separating elements
of the products in categories depending on their
manufacturing origin, i.e. the plastic parts are put
separated to the PCBA which consists of electronic
semiconductors and each material is processed by
the appropriate specialized company.
Consolidated Non-financial Report of ASBISc Enterprises Plc for 2022
55
We measure our
carbon footprint
Also, one of our revenue streams originates from
the sale of refurbished electronic products.
Through this operation, electronic products that
could have been disposed at the expense of the
environment are brought back to use.
BUSINESS TRAVELS
We also have a Travel Policy which defines “DOs”
and “DON’Ts” for employees who travel for
business trips and conferences. Taking
environment into account, when possible, we tend
to use technology to save time on traveling to
different countries and lower our environmental
and climate impact. This has been especially
visible in 2020 and 2021 were due to lockdowns
and restrictions on travel, we have cut down on our
business trips, replacing these with
videoconferences. 2022, however, has shown a
rebound in business travelling, above 2020.
Business trips
(ths kms travelled)
2021
2022
Rail
78.8
70.4
Bus
6.2 5.9
Personal car
158.2
189.4
Plane (economy)
1,316.7
3,377.9
Total
1,559.9
3,643.7
Within the business trips, there has been a YoY fall
in kilometers travelled in by rail and bus. However,
a pick-up has taken place in personal cars as well
as plane, which is the key means of transportation
in the island of Cyprus.
CARBON FOOTPRINT
ASBIS is an environmentally cautious company.
As a result, we continue to measure our carbon
footprint. For our calculations we used the
international GHG Protocol A Corporate
Accounting and Reporting Standard. Within the
Scope 1 concept for ASBIS Group and parent
company only combustion in corporate cars is
taken into account. There are no generation
sources within ASBIS Group. In terms of Scope
2
calculations, we use the location method and we
have applied the European Environment Agency
electricity intensity factors by countries to
electricity consumed in each country present. Even
though our distribution centres are leased, they are
core to our operations and thus we consider them
to be within the company operations boundaries.
CO
2
e tonnes
2020
2021
2022
Scope 1
447
490
674
Scope 2
779
891
1,488
Scope 3
(partial)*
2,240
1,5
60
1
,705
* In terms of Scope 3 calculations we have conducted
calculations in selected areas out of the 15 ones indicated in
GHG Protocol - business travel and employee commuting
Consolidated Non-financial Report of ASBISc Enterprises Plc for 2022
56
We calculate……..
Scope 1 & 2 GHG
emissions per
item sold
impact. For calculations, we have applied indicators, including
GWP, as publically available on GHG Protocol webpages.
In terms of employee commuting, private cars are
our main means of transportation. It should be
taken into account that in Cyprus, where HQs are
located, no rail or subway is available. In some
other parts of the world ASBIS locations are based
near local warehouses, which are situated rather
on the outskirts of the cities due to their size and
rental space. The impact of employee commuting
to work is stronger than this of business trips in
terms of Scope 3 calculations in 2020-22.
For analysis purposes we believe it is worth
normalizing the Scope 1 & 2 emissions data by
number of articles sold. Scope 1 & 2 GHG
emissions amounted to 2,163
CO
2
e in 2022, up
57% YoY, due to larger scale of business. Our
estimates point that we have generated 33 kgs of
CO
2
e per item sold in 2022, up 60% YoY, as the
number of items has remained relatively stable,
while consumption of electricity in Scope 1 and 2
has gone up, due to business expansion.
Normalised
CO
2
e
2020
2021
2022
Number of
articles sold
64,556
66,760
65,
511
Scope 1+2
(tonnes CO
2
e)
1,226
1,381
2,163
Kgs of CO
2
e per
article sold
19.0
20.7
33.0
In terms of waste generated, we gather information
on how much waste disposal costs are. In 2021 c.
US$113.5 ths while in 2022 c.US$198.5 ths.
BIODIVERSITY IMPACTS
ASBIS is not active in the fossil fuel sector i.e. does
not derive any revenues from exploration, mining,
extraction, production, processing, storage,
refining or distribution, including transportation,
storage and trade, of fossil fuels. The Company’s
facilities do not operate near or in protected areas,
areas of high biodiversity outside protected areas.
We have not had any administrative, civil or legal
cases related to environment and climate within
the stated horizon. There also have not been any
malfunctions relating to any of our distribution
centres that would have any negative impact on
the environment and climate. We do not discharge
direct emissions of nitrates, phosphates and
pesticides into water and do not have direct
emissions of priority substances as defined in
Article 2(30) of Directive 2000/60/EC. On top, we
do not generate any hazardous waste as defined
in Article 3(2) of Directive 2008/98/EC and
radioactive waste as defined by Article 3(7) of
Council Directive 2011/70/Euratom. In 2022
ASBIS used 10 megaliters of water in its
operations. Expenses on environment protection
reached US$190 ths in 2021 and US$195 ths in
2022.
Consolidated Non-financial Report of ASBISc Enterprises Plc for 2022
57
We present……….
Taxonomy
calculations
TAXONOMY
For 2022 ASBIS presents extended Taxonomy
calculations as required by the European Union.
Thus, this is the second year, in which eligibility is
presented and first year for which alignment is
disclosed. These have been prepared based on:
Regulation of the EU 2020/852 of the European
Parliament and of the Council of June 18, 2020 on
the establishment of a framework to facilitate
sustainable investment, especially article 8,
EU Commission Delegated Regulation of June 4,
2021 establishing the technical screening criteria
for determining the conditions under which an
economic activity qualifies as contributing
substantially to climate change mitigation or
climate change adaptation and for determining
whether that economic activity causes no
significant harm
to any of the other environmental
objectives (Technical screening criteria),
Commission Delegated Regulation (EU)
2021/2178 of 6 July 2021 supplementing
Regulation (EU) 2020/852 of the European
Parliament and of the Council by specifying the
content and presentation of information to be
disclosed by undertakings subject to Articles 19a
or 29a of Directive 2013/34/EU concerning
environmentally sustainable economic activities,
and specifying the methodology to comply with that
disclosure obligation (Disclosure Regulation),
Commission Delegated Regulation (EU)
2022/1214 of 9 March 2022 amending Delegated
Regulation (EU) 2021/2139 as regards economic
activities in certain energy sectors and Delegated
Regulation (EU) 2021/2178 as regards specific
public disclosures for those economic activities
(expanding the Technical screening criteria).
Based on the above mentioned legal acts, ASBIS
verified Taxonomy alignment on the consolidated
level. This has been conducted in several steps:
Verification of Taxonomy-eligibility: during this
stage we verified whether the eligible activities
defined a year ago are still valid. Also, the
analysis has been expanded by new activities
defined in the Commission Delegated
Regulation (EU) 2022/1214.
Obtaining financial elements: we gathered and
calculated financial elements needed for
disclosures, i.e. revenues, capital expenditures
and operating expenses in line with definitions
presented in Commission Delegated
Regulation (EU) 2021/2178.
In the third step we allocated the business
elements identified in step one to the financial
metrics found in step two.
Verification of Taxonomy-alignment took place
in the form of:
Technical screening criteria for which we
verified the “significant contribution” and “do
not significant harm” principles as described in
Commission Delegated Regulation (UE)
2021/2139; and 2) Minimum Safeguards.
Consolidated Non-financial Report of ASBISc Enterprises Plc for 2022
58
Filling in the required disclosure tables and
preparing information needed as specified in
Commission Disclosure Regulation (EU)
2021/2178. ASBIS business model has mostly
not been included within the first legal acts
related to sustainable development Taxonomy,
as these have been focused on sectors having
the strongest climate impact.
Taxonomy eligible activities identified include:
Renovation of existing buildings (7.2), Installation,
maintenance and repair of energy efficiency
equipment (7.3), Acquisition and ownership of
buildings (7.7) and Computer programming,
consultancy and related activities (8.2). No
activities described in Commission Delegated
Regulation (EU) 2022/1214 have been found.
Financial aspects of the calculations were based
on date from ASBIS financial system and
definitions applied in Commission Delegated
Regulation 2021/2178, i.e.:
Turnover: calculated as defined in Article 2,
point (5) of Directive 2013/34/EU. Turnover
covers revenue recognised pursuant to
International Accounting Standard (IAS) 1,
paragraph 82(a), as adopted by Commission
Regulation (EC) No 1126/2008;
Capex: calculated as additions to tangible and
intangible assets during the financial year
considered before depreciation, amortisation
and any re-measurements, including those
resulting from revaluations and impairments, for
the relevant financial year and excluding fair
value changes. The denominator also covers
additions to tangible and intangible assets
resulting from business combinations.
Specifically, capex covers, if appl: 1) a) IAS 16
Property, Plant and Equipment, paragraphs 73,
(e), point (i) and point (iii);); 2) b) IAS 38
Intangible Assets, paragraph 118, (e), point (i);
and 3) IFRS 16 Leases, paragraph 53, point (h).
As such, these differ from capital expenditures
shown in the consolidated financial statements;
Opex: calculated as direct non-capitalised costs
that relate to research and development,
building renovation measures, short-term
lease, maintenance and repair, and any other
direct expenditures relating to the day-to-day
servicing of assets of property, plant and
equipment by the undertaking or third party to
whom activities are outsourced that are
necessary to ensure the continued and
effective functioning of such assets. Thus, the
definition is much narrower than the one used
for the purpouse of consolidated financial
statements.
After allocating Taxonomy-eligible activities to
financial lines, the next step involved verification of
Taxonomy-alignment.Environmentally sustainable
activities need to add significant contribution to one
of the environmental targets and do no significant
harm to other environmental targets. These targets
encompass: climate change mitigation, climate
change adaptation, water and marine resources,
Consolidated Non-financial Report of ASBISc Enterprises Plc for 2022
59
circular economy, pollution as well as biodiversity
and ecosystems. Thus, we verified whether the
identified activities meet Technical screening
criteria as defined by Commission Delegated
Regulation 2021/2139.
Minimum Safeguards verification has been
conducted based on Platform On Sustainable
Finance recommendations presented in Final
Report on Minimum Safeguards. In frames of
Human Rights, we have verified whether ASBIS
does not fulfil four premises:
The company has not established an adequate
human rights due diligence process as outlined in
the UNGPs and OECD Guidelines for MNEs.
The company has finally been found in breach of
labour law or human rights.
An OECD National Contact Point has accepted a
case, however the company refuses to engage with
the party which has initiated it, or the company has
been found non-compliant with the OECD
guidelines by the NCP.
The Business and Human Rights Resource Centre
(BHRRC) has taken up an allegation against the
company, and the company has not answered to it
within 3 months, only if these letters are less than 2
years old.
Minimum Safeguards verification carried out also
covered corruption, taxation and fair competition.
The sufficiency of due diligence processes was
checked on the basis of internal verification of
existence and effectiveness of these processes,
among others by based on the comprehensive
Business Code and Labour Policy.
Verification of compliance concerned the OECD
Guidelines for Multinational Enterprises and the
UN Guiding Principles on Business and Human
Rights, including the principles and rights set out in
the eight core conventions indicated in the
International Labor Organization Declaration on
Fundamental Principles and Rights at Work and
the principles and rights set out in the International
Charter of Human Rights. Compliance was
checked using the World Benchmark Alliance Core
UNGP indicators proposed by the Platform on
Sustainable Finance. As a result of the analysis, it
was determined that the organization has a
complete due diligence process that meets the
assumptions of the guidelines.
The conducted analysis confirmed there were no
final judgments against any company from the
Capital Group. Similar information was provided by
the verification of the OECD NCP application
database and the Business and Human Rights
Resource Center (BHRRC) application database.
As a result, it was established that the Minimum
Safeguards are met at the level of Capital Group.
Consolidated Non-financial Report of ASBISc Enterprises Plc for 2022
60
Taxonomy – Group revenues for 2022
Economic
activities
Code(s )
Absolute turnover
(US$ m)
% of turnover
Substantial contribution criteria Do No Significant Harm criteria
Minimum
safeguards Y/N
Taxonomy
-aligned
proprtion of revenues
Category (enabling
activity)
Category (transitional
activity)
Climate
change
mitigation
(%)
Climate
chnage
adaptation
(%)
Water and
marine
resource (%)
Circular
economy (%)
Pollution %
Biodiversity
and
ecosystems
%
Climate
change
mitigation
(%)
Climate
chnage
adaptation
(%)
Water and
marine
resource (%)
Circular
economy (%)
Pollution %
Biodiversity
and
ecosystems
%
A. Taxonomy eligible activities
A1. Environmentally sustainable activities (Taxonomy
-aligned)
None
-
0%
- - -
-
-
-
- -
-
-
-
-
-
-
-
-
Turnover of environmentally
sustainable activities (Taxonomy aligned) = US$ 0m
A2. Taxonomy
-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
None
-
0%
- - -
-
-
-
- -
-
-
-
-
-
-
-
-
Turnover of Taxonomy
-eligible but not environmentally sustainable activities (Taxonomy aligned) = US$ 0m
Total A1
+A2 = US$ 0m
B. Taxonomy non
-eligible activities 100%
Turnover of Taxonomy non
-eligible activities = US$ 2,690 m
Total A + B = US$ 2,690 m
We have not found any revenues for 2022 that would be Taxonomy-eligible. Thus, there was no need to verify Technical Screening Criteria in
this matter and no revenues are Taxonomy-aligned.
Consolidated Non-financial Report of ASBISc Enterprises Plc for 2022
61
Taxonomy – Capital expenditures for 2022
Economic
activities
Code
(s)
Absolute turnover
(US$ m)
% of
capex
Substantial contribution criteria Do No Significant Harm criteria
Minimum
safeguards Y/N
Taxonomy
-aligned
proprtion of revenues
Category (enabling
activity)
Category (transitional
activity)
Climate
change
mitigation
(%)
Climate
chnage
adaptation
(%)
Water and
marine
resource (%)
Circular
economy (%)
Pollution %
Biodiversity
and
ecosystems
Climate
change
mitigation
(%)
Climate
chnage
adaptation
(%)
Water and
marine
resource (%)
Circular
economy (%)
Pollut
ion %
Biodiversity
and
ecosystems
%
A. Taxonomy eligible activities
A1. Environmentally sustainable activities (Taxonomy
-aligned)
Renovation of
existing
buildings 7.2
4.0
22%
100%
0%
0%
0%
0%
0%
- Y
Y
Y
Y
Y
Y
-
-
-
Capex
of environmentally sustainable activities (Taxonomy aligned) = US$ 4m
A2. Taxonomy
-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
Acquisition and
ownership of
buildings 7.7
7.9
44%
- -
-
-
-
-
- -
-
-
-
-
Y
-
-
-
Capex
of Taxonomy-eligible but not environmentally sustainable activities (Taxonomy aligned) = US$ 7.9 m
Total A1+A2 = US$ 11.9m
67%
B. Taxonomy non
-eligible activities
Capex of Taxonomy
non-eligible activities = US$ 5.9m 33%
Total A + B = US$ 17.9m
The situation with capital expenditures was different than with revenues. We have found both the Taxonomy-aligned (22% of capex) and
Taxonomy-eligible but not aligned capex (44% of capex). Only 33% of capex were not Taxonomy-eligible.
Consolidated Non-financial Report of ASBISc Enterprises Plc for 2022
62
Taxonomy – Opex for 2022
Economic
activities
Code(s)
Absolute turnover
(US$ m)
% of opex
Substantial contribution criteria
Do No Significant Harm criteria
Minimum
safeguards Y/N
Taxonomy
-aligned
proprtion of revenues
Category (enabling
activity)
Category (transitional
activity)
Climate
change
mitigation
(%)
Climate
chnage
adaptation
(%)
Water and
marine
resource (%)
Circular
economy (%)
Pollution %
Biodiversity
and
ecosystems
Climate
change
mitigation
(%)
Climate
chnage
adaptation
(%)
Water and
marine
resource (%)
Circular
economy (%)
Pollution %
Biodiversity
and
ecosystems
%
A. Taxonomy eligible activities
A1. Environmentally sustainable activities (Taxonomy
-aligned)
None
0%
- -
-
-
-
-
- -
-
-
-
-
-
-
-
-
Opex of
environmentally sustainable activities (Taxonomy aligned) = US$ 0m
A2. Taxonomy
-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
Acquisition and
ownership of
buildings 7.7
2.5
54%
- -
-
-
-
-
- -
-
-
-
-
-
-
-
-
Opex of Taxonomy
-eligible but not environmentally sustainable activities (Taxonomy aligned) = US$ 2.5m
Total A1+A2 = US$ 2.5m
54%
B. Taxonomy non
-eligible activities
Opex of Taxonomy
non-eligible activities = US$ 2.1m 46%
Total A + B
= US$ 4.7m
In terms of opex there were no operating expenditures aligned but 54% eligible.
Consolidated Non-financial Report of ASBISc Enterprises Plc for 2022
63
We see both
climate risks and
opportunities
CLIMATE RISKS
Climate risks are identified and managed at the
level of Board of Directors. Looking at ASBIS from
the double-materiality perspective, we see both the
ways in which ASBIS affects the environment and
ways in which environment affects ASBIS. Above,
we have described the ways via which ASBIS
business model affects climate and environment.
Below we focus on the ways that the environment
and climate can affect ASBIS, i.e. transition and
physical risks.
We recognise both the transition and physical
risks. In terms of transition risks that arise from the
transition to a low-carbon and climate-resilient
economy, we may face the following risks: policy
and legal risks (there may be laws or policies put
in place that may require a more environmentally
cautious approach to raw materials and land use),
technology risks (changes in technology used to
produce IT equipment) – these both may lead to
growing prices in terms of IT equipment and
solutions. We may also face market risk with
consumers switching to more energy-efficient
appliances or making more savvy purchases to
limit their own impact on the environment. We will
monitor these trends and introduce the latest
hardware for our customers. We may also face
reputational risks with difficulties in attracting
customers, business partners and employees if we
do not take strong enough actions against climate
changes.
In terms of physical risks resulting from climate
changes, we may face both acute and chronic
risks. Acute physical risks may arise from weather-
related events in the form of floods, fires or
droughts that may damage factories in certain
regions, cause factories to limit or temporarily stop
their production or disrupt our supply chain in other
ways. These may result in temporary limitations in
our product offering or rising prices of hardware
and components. Chronic physical risks - i.e. risks
that may result from long-term changes in climate,
may also affect ASBIS. Growing temperatures
worldwide may cause a need for more
temperature-resilient hardware and appliances
and may also result in more hardware
malfunctions that may increase warranty claims.
We present a detailed split of transition and
physical risks on the graph below. We believe that
technology and market risks are those transition
risks that are going to be the most important to
ASBIS business model over upcoming years. We
believe the chronic risks may prove more material
than the acute climate risks. On top of climate risks
described above and on the graph below we also
recognise climate opportunities. We believe that
our CSR strategy should help us benefit from
these. ASBIS could be selling new products and
solutions to its customers. These products could
be more environmentally friendly, less energy
consuming and use up fewer resources.
Consolidated Non-financial Report of ASBISc Enterprises Plc for 2022
64
We divide climate
risks and
opportunities into
short, medium
and long-term
ones
ASBIS could also further engage together with
producers in recycling and reusing initiatives. The
Company’s orientation on on-line sales could also
be leveraged into new revenues.
We look at both climate risk and opportunities in
short, medium and long-term. We present this split
in the table below. When we speak about climate,
we treat short-term as 2030, i.e. the end of 2030
UN Agenda, medium-term as 2050, i.e. by when
EU’s climate targets are set, while long-term as
2100.
Short-term
Climate risks
We believe that in the short-term impact of both
transition and physical risks may be rather limited.
On the transition risk side, we may see demand
moving more towards eco
-
products, using less
electricity. We also may feel pressure to conduct
more actions
towards sustainable development in
order to retain our employees and access new
talent. There is potential for acute physical climate
risk to affect some of production sites from we
source products. These disturbances should
however be short in their nature.
Climate
opportunities
We believe we should be faced with climate
opportunities. We have strong relations with key
producers and vendors. Thus, we should be able
to obtain all latest hardware and appliances
offering. Also,
our position could be
strengthened
by a broad portfolio of private labels.
Medium-term
Climate risks
We believe that in the medium-term, the transition
risks
may become more visible. T
here may be
policy and legal risks in the form of laws or policies
put in place that may require more environmentally
cautious approach to raw materials and land use
which could result in changes in product offering,
e.g. due to suspension of some products
manufacturing. Technology risks are likely to be
stronger than in short
-term –
changes in
technology used to produce IT equipment may be
expensive to incorporate, as a result, some portion
of the Company’s suppliers may not be able to
afford these, which may result in growing prices of
IT equipment, which our customers may not be
able to afford, Also, we may face not only acute
climate risks, but also start to experience chronic
physical risks, with either often floods or/and fires
in places from which production is sourced,
disturbing the
production site
s to a stronger extent
or requiring changes in sourcing countries.
Climate
opportunities
On top of product-oriented climate opportunities,
we should also experience climate
-
opportunities
coming from more renewables in energy mixed,
efficiency measures and waste reductions
measures, which could be undertaken.
Long-term
Climate risks
We believe that in the long-term, chronic physical
risks may be stronger than transition risks.
Depending on global scale of GHG reductions,
physical risks may be so strong in selected
countries that production will need to be
transferred. Also, rising temperatures and
potentially some electricity shortages may lead to
electronic
equipment
not working properly,
increasing warranty costs and decreasing
consumer satisfaction.
Climate
opportunities
We believe that in the long-term climate
opportunities may be the smallest. Much will
depend on the scale of GHG reductions and global
climate conditions.
Consolidated Non-financial Report of ASBISc Enterprises Plc for 2022
65
We stress-test our
model for
different climate
scenarios
In order to fully understand the impact of transition
and physical climate risks as well as counteractive
actions that can be taken by the Board of Directors,
we also conducted a scenario analysis. According
to Task Force for Climate Related Financial
Disclosures (TCFD) Recommendations, we
analysed the resilience of our business model
using two scenarios. One scenario assumes global
temperatures to rise less than 2°C versus the
preindustrial era, while the second one assumes
global temperatures to rise more than 2°C versus
the preindustrial era. The above mentioned
scenario analysis has been conducted on a
qualitative not quantitative basis with the use of
publically available climate scenarios as published
by IPCC (Intergovernmental Panel on Climate
Change) in AR6 (Assessment Report) publications
from 2021.
Scenario SSP1-2.6 according to which global temperatures
are unlikely to rise above 2°C versus the preindustrial levels
Possible
impact of
climate risks
We believe that in this scenario the impact of
transition risks would be much stronger than of
physical risks. In that scenario, the policy and legal
risks could be visible with new laws and
regulations being put in place, strongly limiting
using selected raw materials and
t
echnology risks
could also be visible, impacting the product
offering, tilting it towards eco
-
friendly products
only. Market risks may materialize with customers
being interested only in offering limited their own
carbon footprint.
Counteractive
actions that
we could take
ASBIS business model is a flexible one. The Board
of Directors will monitor all climate risks, especially
the transition ones, and will aim to use all available
climate opportunities.
Scenario SSP1-7.0 according to which global temperatures
are likely to rise above 2°C versus the preindustrial levels
Possible
impact of
climate risks
We believe in this scenario, transition risks would
not be sizeable, yet
that
physical risks would be
dominating. Growing temperatures worldwide may
cause the need for more temperature
-
resilient
hardware and appliances, may also result in more
hardware malfunctions that may increase warranty
claims. Also, certain areas from which we
source
our products may no longer be available, as these
may be
flooded
or suffer from lack of water or
electricity. Thus, our supply chain may need to be
modified.
Counteractive
actions that
we could take
ASBIS business model is a flexible one. The Board
of Directors will monitor all climate risks, especially
the physical ones, and will aim to use all available
climate opportunities.
Consolidated Non-financial Report of ASBISc Enterprises Plc for 2022
66
Risks related with negative impact on climate
ASBIS operations have an impact on climate as products purchased consume natural capital, fuel is burnt while
delivering these to the Company and the Company distributing the products to its customers.
Transition risks are risks that arise from the transition to a low-carbon and climate-resilient economy. As a
result we may face the following risks:
- Policy and legal risks, there may be laws or policies put in place that may require more environmentally
cautious approach to raw materials and land use which could result in changes in product offering, e.g. due
to suspension of some products manufacturing,
- Technology risks, changes in technology used to produce IT equipment may be expensive to incorporate,
as a result, some portion of the Company’s suppliers may not be able to afford these, which may result in
growing prices of IT equipment, which our customers may not be able to afford,
- Market risks, may materialize with consumers switching to more energy efficient appliances or making
more savvy purchases to limit their own impact on environment.
- Reputational risks, may come with difficulties in attracting customers, business partners and employees if
we do not take strong enough actions against climate changes.
We believe that technology and market risks are those transition risks that are going to be the most
important to ASBIS business model over upcoming years.
Physical risks are risks that arise from the physical effects of climate change. We may face both acute and
chronic risks:
-Acutephysical risks may arise from weather-related events in the form of floods, fires or droughts that may
damage factories in certain regions, cause factories to limit or temporary stop their production or disrupt our
supply chain in other ways. These may result in temporary limitations in our offer or rising prices of
hardware and components.
-Chronicphysical risks i.e. risks that may result from long-term changes in the climate, may also affect
ASBIS. Growing temperatures worldwide may cause the need for more temperature-resilient hardware and
appliances, may also result in more hardware malfunctions that may increase warranty claims.
We believe the cronic risks may prove more material than the acute climate risks.
Opportunities related to climate changes
ASBIS could be selling new products and solutions to its customers. These products could be more environmentally
friendly, less energy consuming and use up fewer resources. ASBIS could also further engage together with
producers in recycling and reusing initiatives. The Company’s orientation on on-line sales could also be leveraged
into new revenues.
ASBIS
CLIMATE
Consolidated Non-financial Report of ASBISc Enterprises Plc for 2022
67
Policies against bribery and corruption
Never
compromise on
integrity
Turn down business if you
can’t do it legally and
ethically. Don’t let
pressure to succeed make
you do things you know
are legally and ethically
wrong. We speak up for
what is right. We report
misconduct immediately
when we see it.
[GRI 2-15, 205-2, 205-3]
At ASBIS we are against bribery and corruption, as
these are illegal activities. We believe it is against
the law to offer, promise, give, request, agree,
receive or accept bribes and we penalize such a
behavior. We consider corruption an obstacle to
economic and social development around the
world, as we think it has a negative impact on
sustainable development and exposed
communities. We understand that any such
actions if undertaken by our employees could
negatively affect the Company’s reputation.
We have our Business Ethics Policy which among
others incorporates an Anti-bribery and Anti-
corruption Policy. The latter explains to employees
that there can be two forms of bribery and
corruption, an active and a passive one. An active
one in which a person is one who offers, gives or
promises to give a financial or other advantage to
another individual in exchange for improperly
performing a relevant function or activity. A passive
one covers the offence of being bribed, which is
defined as requesting, accepting or agreeing to
accept such an advantage, in exchange for
improperly performing such a function or activity.
Both constitute a criminal offence and are not
accepted by ASBIS.
The Anti-bribery and Anti-corruption Policy also
explains our employees that bribery and corruption
can be conducted for the benefit of a Company and
for the benefit of a person. It can be tangible and
intangible in nature. Tangibility means that the
benefit can be measured in cash (monetary) and it
can be represented by e.g. presents, contracts,
sizeable discounts for goods and services.
Intangibility means that the benefit from the bribery
can take the form of e.g. a promotion, lower
amount of work, hiring a friend or relative.
To make the matters of bribery and corruption
more understandable to our employees, our Anti-
bribery and Anti-corruption Policy encompasses
examples of most prevalent forms of these
offences and indicates that breaches of laws can
not only result in sizeable ASBIS reputation loss
but also in unlimited fines and imprisonment for
individuals.
The Anti-bribery and Anti-corruption Policy is a
comprehensive one. It outlines ASBIS policy in
relation to sponsoring, donations and
memberships, specifies allowed practices in
relation to gifts and hospitality and allowed
behavior in during interactions with business
partners and suppliers. On top, it also specifies
how to report compliance violations, how an
investigative procedure looks like as well as
disciplinary consequences of non-compliant
conduct.
Consolidated Non-financial Report of ASBISc Enterprises Plc for 2022
68
Just say no
It’s not only OK to refuse
to follow directions that
you know are illegal or
unethical, it’s required. No
ASBIS Manager has the
authority to make you
violate the law, our Code,
policies or ethical
principles.
Our Business Ethics Policy also encompasses
conflicts of interest. A conflict can take the form of
a business relationship with, or an interest in, a
competitor or customer of ASBIS, or participation
in sideline activities that prevent employees from
being able to fulfill their responsibilities at ASBIS.
It is important that all employees recognize and
avoid conflicts of interest, or even the appearance
of a conflict of interest, as they conduct their
professional activities. Employees must inform
their supervisor of any personal interest they could
possibly have in connection with the execution of
their professional duties.
Also, since November 2016, we have a formal
policy in place which regulates hiring of family
member at ASBIS. In the case of intention of hiring
family members in any of the legal entities of the
Group, the following must apply:
family members of 1
st
, 2
nd
degree and spouse
or spouse equivalent may not be employed in
the same department unless approved by the
company’s Board of Directors majority vote,
a supervisor or manager may not be the direct
or second level supervisor of a relative.
Prevention of any illegal activities is crucial for
ASBIS. It is also part our Vision. As a result, our
Business Ethics Code also addresses such
important topics like fraud, anti-money laundering,
anti-competitive behaviours, among many others.
We
possess a comprehensive
Business Ethics Policy
that we
apply every day.
Consolidated Non-financial Report of ASBISc Enterprises Plc for 2022
69
Risk management
Risk
management
is of high
importance
to ASBIS.
Performance in t
he IT distribution business
depends on a sizeable number of external factors,
which are not under the Company’s management
control and on internal risk factors. Due to
relatively low margins, risk identification,
assessment and management is of high
importance to the Board of Directors.
The process of identifying and assessing the risks
within the ASBIS Group is a multi-layer process. At
the local level, this is done by the local
management through their extensive knowledge of
the markets coupled with independent analysis of
how each country is assessing the risks. Each
country is utilizing all possible tools (research,
macroeconomic analyses, etc.) and identifies the
areas of risks. The environmental/climate
measurements are currently available for each
country of our operations and are easily accessible
for us to evaluate. At the group level, the risk
identification is an ongoing daily process which is
followed by the Corporate risk management team
situated in our HQ in Cyprus.
The risk management process is a daily process
within the ASBIS Group. Our major risks contain
credit risk, FX risk, transactional risk, Political Risk
and environmental/climate risk. Having identified
the risks, the relevant team will undertake all
efforts to manage them. In case of credit risk and
FX risk (financial risks) we undertake insurance
and hedging. In case of transactional risk, we
follow all international standards and techniques
which are widely provided by external experts. As
far as the climate risk management is concerned,
this is done based on each country’s strategy
towards the climate awareness programs and the
individual actions required by the Company.
During the recent years, climate-related risk and its
management has become an integrated part of our
risk management processes and it entails all
relevant check points that have been requested by
authorities and/or the relevant environmental
ombudsman in each country. Now, at each and
every Board of Directors meeting there is a
discussion on environmental issues and all
directors are fully aware of what actions are
needed to be undertaken by the company.
Constantinos Tziamalis, deputy CEO, is among
other responsible for climate change and
environmental protection.
On top of climate/environmental risk, the Company
recognizes other non-financial risks which include
(please note this is not a full list): risk related to
employees, risk related to human rights violation,
risk related to environmental as well as risk related
to bribery and corruption. These are described in
the table below along with mitigating actions and
key financial risks.
Consolidated Non-financial Report of ASBISc Enterprises Plc for 2022
70
The Company’s Board of Directors is responsible
also for its internal control system and its
effectiveness. The Company carries out annual
reviews of its strategy, development, results and
plans. Based on conclusions drawn from that
review, a detailed budgeting process is performed
including all functional areas of the Company, with
the participation of the medium and top-level
management. During the course of the year, the
Board of Directors analyzes the current financial
results, product portfolio development, market
position and compares them with the budget, using
the management reporting system.
Consolidated Non-financial Report of ASBISc Enterprises Plc for 2022
71
Selected
financial risks
Description Counteracting
The war
between
Russia and
Ukraine and
sanctions
imposed to
Russia
The war between Russia and Ukraine (which were, before the war, the two major markets for ASBIS)
constituted a major disruption in demand in both countries, the whole region and the globe. The war has
created the most
unfavourable business environment in b
oth countries. Despite the large geographical
presence of the Group, it is not possible to totally weather the impact of a full
-
scale war between these two
countries. The Company considers the situation as critical, and it is extremely difficult to judge how this will
evolve.
We have a mutual understanding with all our vendors and service
providers that our partnerships will continue but we cannot warrant
that the business can be retained due to the sanctions imposed on
Russia. These sanctions are significant and limit the ability of the
Group to sell specific products; this is expected to continue
adversely impact our revenues. The Group being fully compliant to
the directions given by the EU and its suppliers, has undertaken all
necessary actions to prevent sales of sanctioned products to
sanctioned entities and/or individuals.
Spreading of
the Covid-
19
Virus in the
markets we
operate
The COVID
-
19 pandemic has had and continues to have a significant impact around the world. The COVID-
19 pandemic has at times caused significant volatility and disruption in global financial markets. The
shutdown of the economies is no longer an option, however, the zero
-
COVID policy in China and Chinese
Covid lockdowns have disrupted the supply chain and made consumers much concerned about the overall
situation.
Having seen the development of the pandemic, the Company is in
a position to manage all impacts emanating from it and it is
expecting that soon it will be declared as finished.
The in
-
country
crisis affecting
our
major
markets, gross
profit and gross
profit margin
Throughout the years of operation, the Company has from time to time suffered from specific in
-
country
problems, emanating from the deterioration of specific countries’ financial situation, due to a number of
issues including but not limited to political instability. We need to monitor any developments, react fast
and weather every risk showing up in a specific market to secure our results.
The Company needs to keep in mind that different in
-
country
problems might arise at any time and affect our operations. Even
though we have improved our procedures, we cannot be certain
that all risks are mitigated.
Credit risk
The Company buys components and finished products from its suppliers on its own account and resells
them to its customers. The Company extends credit to some of its customers at terms ranging from 7 to 90
days or, in a few cases, to 120 days. The Company’s payment obligations towards its suppliers under such
agreements are separate and distinct from its customers' obligations to pay for their purchases, except in
limited cases where the Company’s arrangements with its suppliers require the Company to resell to certain
resellers or distributors. Thus, the Company is liable to pay its suppliers regardless of whether its customers
pay for their respective purchases. As the Company’s profit margin is relatively low compared to the total
price of the products sold, in the event where the Company is not able to recover payments from its
customers, it is exposed to financial liquidity risk. The Company has in place credit insurance which covers
such an eventuality for the majority of its revenue.
Despite all efforts to secure our revenues, certain countries
remained non
-insured (Ukraine), therefore it is v
ery important for us
to ensure that we find other sources of securities which help us
minimize our credit risk. The Board of Directors decided to enhance
the Company’s risk management procedures. These do not
guarantee that all issues will be avoided, however, they have
granted the Company with confidence that is in a position to
weather any possible major credit issue that may arise.
Consolidated Non-financial Report of ASBISc Enterprises Plc for 2022
72
Foreign
exchange risk
The Company’s reporting currency is the U.S. dollar. In 2022 a good portion of our revenues was
denominated in U.S. dollars, while the balance is denominated in Euro, Ruble, UAH, KZT and other
currencies, certain of which are linked to the Euro. Our trade payable balances are principally (about 85%)
denominated in U.S. dollars. In addition, approximately half of our operating expenses are denominated in
U.S. dollars and the other half in Euro or other currencies, certain of which are linked to the Euro. As a
result, reported results are affected by movements in exchange rates, particularly in the exchange rate of
the U.S. dollar against the Euro and other currencies of the countries in which we operate, including the
Russian Ruble, the Ukrainian Hryvnia, the Czech Koruna, the Polish Zloty, the Croatian Kuna, the
Kazakhstani Tenge and the Hungarian Fori
nt.
In particular, a strengthening of the U.S. dollar against the
Euro and other currencies of the countries in which we operate may result in a decrease in revenues and
gross profit, as reported in U.S. dollars, and foreign exchange loss relating to trade
receivables and
payables, which would have a negative impact on our operating and net profit despite a positive impact on
our operating expenses. On the other hand, a devaluation of the U.S. dollar against the Euro and other
currencies of the countries in
which we operate may have a positive impact on our revenues and gross
profit, as reported in U.S. dollars, which would have a positive impact on operating and net profit despite a
negative impact on our operating expenses. In addition, foreign exchange fluctuation between the U.S.
dollar and the Euro or other currencies of the countries in which we operate may result in translation gains
or losses affecting foreign exchange reserve. Furthermore, a major devaluation or depreciation of any such
currencies may result in a disruption in the international currency markets and may limit the ability to transfer
or to convert such currencies into U.S. dollars and other currencies.
Despite all efforts of the Company, there can be no assurance that
fluctuations in the exchange rates of the Euro and/or other
currencies of the countries in which we operate against the U.S.
dollar will not have a material adverse effect on our business,
financial condition and results of operations. Especially at extreme
cases, like the acts of war, we have suffered due to the
governmentally driven exchange rates (Russian RUB) and the
ability of the Company to undertake hedging has been significantly
affected. Therefore, careful observation of the currency
environment remains a crucial
factor for our success.
Inventory
obsolescence
and price
erosion
The Company is often required to buy components and finished products according to forecasted
requirements and orders of its customers and in anticipation of market demand. The market for IT
finished
products and components is characterized by rapid changes in technology and short product shelf life, and,
consequently, inventory may rapidly become obsolete. Due to the fast pace of technological changes, the
industry may sometimes face a short
age or, at other times, an oversupply of IT products.
As the Company
increases the scope of its business and of inventory management for its customers, there is an increasing
need to hold inventory to serve as a buffer in anticipation of the actual needs of the Company’s customers.
This increases the risk of inventory becoming devalued or obsolete and could affect the Company’s profits
either because prices for obsolete products tend to decline quickly, or because of the need to make
provisions or even writ
e-offs.
In an oversupply situation, other distributors may elect to proceed with price
reductions to dispose of their existing inventories, forcing the Company to lower its prices to stay
competitive.
The Company’s ability to manage its inventory and protect its
business against price erosion is critical to its success.
Several of
the Company’s most significant contracts with its major suppliers
contain advantageous contract terms that protect the Company
against exposure to price fluctuations, defective products and stock
obsolescence.
Selected non-
financial risks
Description Counteracting
Risk related to
social and
employee
matters
The biggest risks that we see in relation to social and employee matters are linked to retaining employees
(especially key employees) and our ability to hire new qualified personnel in all countries of operations. Our
business depends upon the contribution of a number of our executive directors, key senior management
and personnel. There can be no certainty that their services will continue to be available to us. We have in
the past experienced and may in the future continue to experience difficulty in identifying expert personnel
in our areas of activity, and particularly in the areas of information technology and sales and marketing, in
the co
untries in which we operate. On average in 2021 only c.8% of our employees were employed
in the
parent company with the remaining portion outside of our Cyprus headquarters. If we are not successful in
retaining or attracting highly qualified personnel in key management positions, this could have a material
adverse effect upon our business, operating results and financial condition.
ASBIS is focused on providing its employees best possible
conditions. We aim for our employees to have a transparent career
path and a fair constructive assessment. We
make sure their
remuneration
is fair and offer additional perks and trainings. We
have a global HR
Management Policy to standardize the approach
within the whole Group.
Consolidated Non-financial Report of ASBISc Enterprises Plc for 2022
73
Risk related to
human rights
The risk is related to ASBIS as well as to our value chain. In terms of ASBIS, there is a risk, yet limited in
our opinion, that the basic rights of our employees will be violated. Despite a selection of employees, we
cannot guarantee that all employees will be fair
ly
treated and that no mobbing and no discrimination will
take place. There is also some r
isk within our value chain. Some of the products that we source
come from
countries
like. China, Thailand, and Taiwan. We cannot guarantee
that all the rights of those employees are
respected.
In terms of ASBIS employees, we counteract this risk by introducing
formal polices that define the values and the ethical aspects of our
operations. In terms of our value chain, we try to mitigate the risk
by purchasing third party software and hardware from international
companies
and producers, for which corporate social responsibility
and value chain control are
important. We have a
Human Rights &
Labour Policy
.
We have also approved RBA’s Code of Conduct as
Code of Conduct for ASBIS’ suppliers.
Risk related to
our
environment
and climate
impact
We see elements of our environment and climate impact which could generate risk. One is our direct
involvement. The risk is related to fuel and
electricity
consumption by our offices and our employees as well
as to the
logistics
side of our business (with goods being delivered to us from producers and later being
dispatched to customers). The
other
, indirect impact and risk related to environment comes from the
customers using the products that we have
sold them. If these products are
of poor quality and require
sizeable number of repairs they can either b
e
thrown away quickly (harming the environment) or customers
may need to relate to warranties (which generate increased need for logistics).
We also see transition and
physical r
isks. In terms of transition risks that arise from the transition to a low-carbon and climate-
resilient
economy we may face the following risks: policy and legal risks (there may be laws or policies put in place
that may require more environmentally cautious approach to raw materials and land use), technology risks
(changes in technology used to produce IT equipment)
–
these both may lead to growing prices in terms of
IT equipment and solutions. We may also face market risk with consumers switching to
more energy
efficient appliances or making more savvy purchases to limit their own impact on environment. We may
also face reputational risks with difficulties in attracting customers, business partners and employees if we
do not
take strong enough action
s against climate changes. In terms of physical risks resulting from climate
changes we may face both acute and chronic risks. Acute physical risks may arise from weather
-
related
events in the form of floods, fires or droughts that may damage factories in certain regions, cause factories
to limit or temporary stop their production or disrupt our supply chain in other ways. These may result in
temporary limitations in our offer or rising prices of hardware and components. Chronic physical risks i.e.
risks th
at may result from long-term changes in the climate, may also affect ASBIS
. Growing temperatures
worldwide may cause the need for more temperature
-
resilient hardware and appliances, may also result in
more hardware malfunctions that may increase warranty claims.
We minimize the risk of our direct environment impact by being cost
cautious
and aiming to use less resources (water, gas, electricity)
and
by focusing on high quality of products offered. This is
especially true in case of our private
label products. We will be
taking actions to minimize the impact both of transition and physical
risks. We will monitor the trends and introduce the latest hardware
for our customers. We will also keep elasticity in terms of product
sourcing. Our
four distribution centres are located in different areas
which should limit the acute physical risks impact.
Risk related to
bribery and
corruption
We see risks related to bribery and corruption as we operate in a B2B environment (business to business)
in
some 56
countries worldwide in four different regions with diverging cultures. As contracts signed both
with suppliers and with customers are of sizeable value, we cannot exclude such a risk. The key element
of that risk is reputation risk that ASBIS would have to face, if such actions were undertaken by our
employees.
We emphasize the importance of ethics in our relations with both
suppliers and
customers. We co-operate with international
companies and thus believe that this risk is limited. We have in
place
our Business Ethics Code, which among others includes an
Anti-bribery and Anti-corruption Policy.
Consolidated Non-financial Report of ASBISc Enterprises Plc for 2022
74
Non-financial indicators & GRI & IIRC & SASB & TCFD
alignment
Non-financial indicators presented in this Report have been selected based on their importance to stakeholders and the Board of Directors and with the
aim to present the Group in a more comprehensive manner. The table below summarizes all the non-financial indicators included in the Report. On top,
it clarifies the way these indicators were calculated and points to the place in the Report where these can be found.
Non-financial indicator
Description
Page number
Active customers Customers that have made at least one purchase during the year. 4, 13
Countries with subsidiaries Number of countries in which ASBIS established local subsidiaries.
4, 7, 13,
14,15,23,36
Countries of operations Number of countries, to which goods and products are delivered. 4
,7,22,23,36
Regions of operations Number of regions summing up culturally similar countries. 4, 8
Vendors Number of vendors possessed. 4
Active articles Number of stock keeping units in our portfolio. 12
Products in offering Number of product types irrespective of their characteristics, e.g. not taking into account their colour or type. 4
Number of private labels Number of own brands under which OEM products are sold.
4
, 7, 14, 42-
43
Stores Number of retail APR stores with their floorspace. 13, 14
Average time of conducting an order
Time from the moment order is received to the moment when the sales invoice is issued and goods are shipped to the customer.
13
Suppliers Companies from which we source goods and products. 12
Transactions on-line Percentage of transactions that are conducted by our customers on-line. 4, 13
Distribution centres Number of distribution centres leased and owned together with their floorspace. 4, 7, 8, 12,
18
Warehouses Number of warehouses operated by ASBIS. 7, 14
Consolidated Non-financial Report of ASBISc Enterprises Plc for 2022
75
Average number of employees Average number of employees in the year by functions, regions and age. 4, 36, 37
Hiring, leaving, rotation
Average number of new employees in the period, average number of leaving employees in the period. Rotation expressed as a
percentage of people leveraging to average number of people, shown as voluntary and involuntary.
37
Diversity indicators Board management and overall gender and ethnic diversity. 27
Employment type Statistics relating to types of employment used at ASBIS. 37
Donations Value of donations given to charities and value of events sponsored. 46
Corporate cars Number of corporate cars – owned, leased as well as kilometers travelled. 52
Electricity Electricity consumed on the Group level. 53
Business trips Number of kilometers travelled during business trips by means of transportation. 55
GHG emissions Emissions of greenhouse gases under Scope 1, 2 and selective elements of Scope 3. Normalised ratios. 55
Taxonomy
Percentage of revenues, capital expenditures and operating costs eligible according to European Union Sustainable
Development Taxonomy.
57-62
Below we present alignment with Non-financial Reporting Directive
Page number
Business model
7-14
Key performance indicators
All KPIs are described in the table above
Description of risks and risk management
65-67, 69-73
Main policies and their
implementation All policies are presented in the sections below
-
employee matters 36-44
-
social matters 45-47
-
environmental matters 52-67
-
human rights matters 48-51
Consolidated Non-financial Report of ASBISc Enterprises Plc for 2022
76
-
anti-corruption and anti-bribery policies 68-69
Below we present alignment with International Integrated Reporting Council
Page number
Capitals
15-18,36-37,42-44,45-47,52
Governance
24-30
Business model
7-14
Risks and opportunities
65-67, 69-73
Strategy and allocation of resource
s 15, 19-23
Results
15-16
Outlook
23
Approach
to reporting 5-6, 32-36
Below we present SASB Alignment table for the Multiline Retailer & Distributor industry within the Consumer Goods sector:
Topic
Accounting metric
Code
ASBIS Metric or Qualitative Disclosure
Page number
Energy Management in
Retail & Distribution
(1) Total energy consumed, (2) percentage grid
electricity, (3) percentage renewable
CG
-MR-
130a.1
In 2022 Group electricity consumption came in at 3.6 GWh
(12,960), up 36%, much above revenues dynamics, due to adding
new companies into the Group, growing number of employees and
the need to expand warehouse space. Electricity consumption
includes all offices from 28 subsidiaries and distribution centres
and warehouses. All electricity came from the grid
–
the newly
installed solar panels have not been operational in 2022 thus none
of the subsidiaries has a direct source of renewables electricity.
53
Data Security
Description of approach to identifying and addressing
data security risks
CG
-MR-
230a.1
Information security is managed by the Security Committee. There
are policies and best practices in place that aim to minimize data
security risks. Some of them are the "principle of least privilege"
per service account and the "single entry point" applied
to most of
IT services. In addition, the implementation of "2
-
factor
authentication" to our IT services was finished in 2021, which
49-50
Consolidated Non-financial Report of ASBISc Enterprises Plc for 2022
77
further increases data security. Moreover, our high availability (HA)
setups are based only on enterprise grade solutions inclusive of
vendor support. Monitoring and notification systems help us track
any abnormal activity and respond quickly when necessary.
Data
security risks are addressed by the IT department, mostly as
breach prevention. The IT department deploys and supports its
systems and services according to known best practices and
continuously monitors integrity, productivity, and user feedback.
Any serious issues are reported to IT management and if the issue
is considered a data security incident, it is escalated to the Security
Committee. Any significant incidents are discussed in a Security
Committee meeting.
The Security Committee was established in
November 2021 to manage the information and data security within
the ASBIS Group.
(1) Number of data breaches, (2) percentage involving
personally identifiable information (PII), (3) number of
customers affected
CG
-MR-
230a.2
In 2022 there were no data breaches, no incidents involving
personally identifiable information (PII) and no customers were
affected in any way (all zero for 2021 as well).
50
Labor Practices
(1) Average hourly wage and (
2) percentage of in-
store employees earning minimum wage,
by region
CG
-MR-
310a.1
Remuneration depends on many factors, yet ASBIS does not pay
minimum wage in countries present (neither at retail stores nor
warehouses). We also do not pay by the hour thus do not present
this SASB indicator, as it is not material to our business model.
39
(1) Voluntary and (2) involuntary turnover rate
for in-store employees
CG
-MR-
310a.2
In 2022, the voluntary turnover in stores reached c.7% and
involuntary c.11%.
37
Total amount of monetary losses as a result of
legal proceedings associated with labor law
violations
CG
-MR-
310a.3
There were no monetary losses as a result of legal proceedings
associated with labour law violations in 2022 and 2021.
41
Workforce Diversity &
Inclusion
Percentage of gender and racial/ethnic group
representation for (1) management and (2) all
other employees
CG
-MR-
330a.1
If we take all the boards of our subsidiaries into account, as many
as 17 women sit on our boards, which translates into a sizeable
49% share. The picture also looks more favourably if we look at
split of management (understood as in SASB as board plus store
managers) where at the end of 2022 47% (stable YoY) share were
women versus 34% share among remaining employees. Ethnic
diversity at ASBIS is growing YoY, with Hispanic, Afro
-
American,
Asian employees being present.
27
Total amount of monetary losses as a result of
legal proceedings associated with employment
discrimination
CG
-MR-
330a.2
Lack of discrimination is visible in numbers. Total amount of
monetary losses as a result of legal proceedings associated with
employment discrimination amounted to zero in 2022 and 2021.
48
Product Sourcing,
Packaging & Marketing
Revenue from products third-party certified to
environmental and/or social sustainability
standards
CG
-MR-
410a.1
Essentially all revenues in 2022 and in 2021 were from products
third
-party
certified to environmental and/or social sustainability
standards.
50
Discussion of processes to assess and manage
risks and/or hazards associated with chemicals
in products
CG
-MR-
410a.2
Our environmental and climate impact also results from the
products that we distribute and sell. All our products are safe for
our customers and end-customers. The Group sells products
53
Consolidated Non-financial Report of ASBISc Enterprises Plc for 2022
78
manufactured by big corporations that follow the applicable
regulation and comply with high international standards. There
were no products in need for improvement in relation to health and
safety. The Company makes sure that producers of goods
distributed by ASBIS do not use improper chemicals or hazardous
materials. We obtain the necessary certificates such as CE
(Conformité Européenne) and RoHS (Restrictions of Hazardous
Substances). We have our own QA&QC (Quality Assurance and
Quality Control) team (25 people) in our Chinese and Czech offices
that conduct all the required
and necessary tests.
Discussion of strategies to reduce the
environmental impact of packaging
CG
-MR-
410a.3
We receive already packaged products from the vendors such as
Apple, Dell, Intel, AMD etc. all of which are companies with very
good environmental record. In the last year, we have also seen
some of our vendors improve packaging, among them Apple who
reduced the size of all their packaging, allowing for more items to
be fitted on the pallets, therefore minimizing the use of paper and
logistics cost which in turn contribute to even lower carbon
footprint. What we do additionally is put overcarton over the goods
and place them on the pallets. Sometimes we place most valuable
goods inside wooden boxes. For additional security we may use
small plastic crates (boxes). We mostly use vercarton, wooden
boxes, small plastic boxes as packaging. We use exactly what is
required. Overcarton and wooden boxes are used only for the
goods of the highest value and only to destinations where such
security measures are needed. We use the cartons (small boxes)
received from vendors for our courier deliveries, minimizing the
quantity of additional packaging and ways to minimize empty
space in pallets. But if needed we use empty cardboard boxes or
bubble foil. We are mainly a distributor and have no direct impact
on the actual packaging of goods (retail packaging). We developed
Green packaging for our own brands. All packages used at DC are
made from recycled materials, while plastic blisters and hooks
have been replaced with paper trays and hooks. ASBIS reuses the
cartons that come with the products purchased by our vendors,
which results in much lower carton usage.
53-54
Activity metric
Number of: (1) retail locations and (2) distribution
centers
CG-MR-
000.A
At
the end of 2022 we ran 27 Apple stores in 11 FSU countries (17
stores in 2021
)
. ASBIS had 4 distribution centres at the end of
2022.
7,13,14,18
Total area of: (1) retail space and (2) distribution
centers
CG-MR-
000.B
Retail outlets: with 3,659 m2 floorspace. The DC in Prague is
responsible for distribution across whole Europe. It is leased and
covers a total area of 14,000 m2. Dubai serves our operations in
the Middle East and Africa and certain Central Asian countries. It
18
Consolidated Non-financial Report of ASBISc Enterprises Plc for 2022
79
is owned and has an area of 4,246 m2. The distribution center in
Johannesburg is served as a fast
-
reloading station to ASBIS
customers located not only throughout South Africa, but also in the
central regions of the continent. The lease covers an area of
4,000m2. The distribution center in Tbilisi is a base for the
Caucasus region
– it is the smallest with 3,000m2.
The total
warehouse space of ASBIS, including main, regional and local
distribution centers, currently amounts to approximately 63,000 m2
Below we present the TCFD recommendations alignment table
Topic
Indicator
Page number
Comment
Governance
:
Disclose the organisation’s
governance around climate
-
related risks
and opportunities.
a.
Describe the board’s oversight of climate-related risk and opportunities 27, 30, 69-70 Disclosed
b. Describe the management’s role in assessing and managing climate-related risks
and opportunities
27, 30, 69-70 Disclosed
Startegy:
Disclose the actual and potential
impacts of climate
-
related risks and
opportunities on the organisation’s
businesses, strategy, and financial
planning where such information is
material.
a. Describe the climate-related risks and opportunities the organization has identified
over the short, medium and long term
63-66 Disclosed
b. Describe the impact of climate-related risks and opportunities on the
organisation’s businesses, strategy and financial planning
63-66 Disclosed
c. Describe the resilience of the organisations’ strategy, taking into consideration
different climate-related scenarios, including a 2 degree C or lower scenario
65 Disclosed
Risk management:
Disclose how the
organization identifies, asseses and
manages climate
-related risks.
a. Describe the organisation’s processes for identifying and assessing climate-
related risks
63-66, 69-70 Disclosed
b.
Describe the organisation’s processes for managing climate-related risks 63-66, 69-70 Disclosed
c. Describe how processes for identifying, assessing and managing climate-related
risks are integrated into the organization’s overall risk management
63-66, 69-70 Disclosed
Metrics and targets
:
Disclose the metrics
and targets used to assess and manage
relevant climate
-related risks and
opportunities where such information is
material.
a. Disclose the metrics used by the organization to assess climate-related risks and
opportunities in line with its strategy and risk management process
52-56 Disclosed
b. Disclose Scope 1, 2 and, if appropriate 3 greenhouse gas (GHG) emissions, and
the related risk
55 Disclosed
c. Describe the targets used by the organization to manage climate-related risks and
opportunities and performance against targets
-
Not disclosed due to lack
of targets
Statement of use
ASBIS has reported the information cited in this GRI content index for the period January 1, 2022 to December 31, 2022 with reference to
the GRI Standards.
GRI 1 used
GRI 1: Foundation 2021
Consolidated Non-financial Report of ASBISc Enterprises Plc for 2022
80
GRI
Standard Disclosure Page number Disclosure Page number
GRI 2: General Disclosures 2021
2
-1 Organizational details 7
2-2 Entities included in the
organization’s sustainability
reporting
11
2-3 Reporting period, frequency and
contact point
5-6
2
-4 Restatements of information
6
2
-5 External assurance 6
2-6 Activities, value chain and other
business relationships
7-14
2
-7 Employees 36-37
2
-
8 Workers who are not employees
36, 37
2-9 Governance structure and
composition
24, 27, 28
2-10 Nomination and selection of the
highest governance body
25
2
-
11 Chair of the highest governance
body
25
2-12 Role of the highest governance
body in overseeing the management
of impacts
29
2-13 Delegation of responsibility for
managing impacts
29, 30
2-14 Role of the highest governance
body in sustainability reporting
29
2
-15 Conflicts of interest 25, 68
2-16 Communication of critical
concerns
-
2-17 Collective knowledge of the
highest governance body
29
2-18 Evaluation of the performance
of the highest governance body
29
2
-19 Remuneration policies 26
2-20 Process to determine
remuneration
26
2
-
21 Annual total compensation ratio
-
2-22 Statement on sustainable
development strategy
19, 23
2
-23 Policy commitments 48
2-24 Embedding policy
commitments
48-51
2-25 Processes to remediate negative
impacts
-
2-26 Mechanisms for seeking advice
and raising concerns
-
2-27 Compliance with laws and
regulations
48, 49
2
-28 Membership associations
47
2-29 Approach to stakeholder
engagement
31-34
2-30 Collective bargaining
agreements
41
GRI 3: Material Topics 2021
3-1 Process to determine material
topics
31-35
3
-2 List of material topics
31-35
3-3 Management of material topics
31-35
GRI 201: Economic
Performance 2016
201-1 Direct economic value
generated and distributed
17
201-2 Financial implications and
other risks and opportunities due to
climate change
63-66
Consolidated Non-financial Report of ASBISc Enterprises Plc for 2022
81
201-3 Defined benefit plan obligations
and other retirement plans
-
201-4 Financial assistance received
from government
-
GRI 202: Market Presence 2016
202-1 Ratios of standard entry level
wage by gender compared to local
minimum wage
-
202-2 Proportion of senior
management hired from the local
community
-
GRI 203: Indirect Economic
Impacts 2016
203-1 Infrastructure investments and
services supported
45-46
203-2 Significant indirect economic
impacts
-
GRI 204: Procurement Practices
2016
204-1 Proportion of spending on local
suppliers
-
GRI 205: Anti
-corruption 2016
205-1 Operations assessed for risks
related to corruption
-
205-2 Communication and training
about anti
-
corruption policies and
procedures
67-68
205-3 Confirmed incidents of
corruption and actions taken
67-68
GRI 206: Anti
-competitive
Behavior 2016
206-1 Legal actions for anti-
competitive behavior, anti
-
trust, and
monopoly practices
-
GRI 207: Tax 2019
207-1 Approach to tax
-
207-2 Tax governance, control, and
risk management
-
207-3 Stakeholder engagement and
management of concerns related to
tax
-
207
-4 Country-by-
country reporting
-
GRI 301: Materials 2016
301-1 Materials used by weight or
volume
-
301
-
2 Recycled input materials used
-
301-3 Reclaimed products and their
packaging materials
-
GRI 302: Energy 2016
302-1 Energy consumption within the
organization
53
302-2 Energy consumption outside
of the organization
-
302-3 Energy intensity
-
302-4 Reduction of energy
consumption
-
302-5 Reductions in energy
requirements of products and services
-
GRI 303: Water and Effluents
2018
303-1 Interactions with water as a
shared resource
-
303-2 Management of water
discharge-related impacts
-
303-3 Water withdrawal
-
303
-4 Water discharge
-
303-5 Water consumption
56
GRI 304: Biodiversity 2016
304-1 Operational sites owned,
leased, managed in, or adjacent to,
protected areas and areas of high
56
304-2 Significant impacts of
activities, products and services on
biodiversity
-
Consolidated Non-financial Report of ASBISc Enterprises Plc for 2022
82
biodiversity value outside protected
areas
304-3 Habitats protected or restored
-
304-4 IUCN Red List species and
national conservation list species
with habitats in areas affected by
operations
-
GRI 305: Emissions 2016
305-1 Direct (Scope 1) GHG
emissions
55, 56
305-2 Energy indirect (Scope 2)
GHG emissions
55, 56
305-3 Other indirect (Scope 3) GHG
emissions
55, 56
305
-4 GHG emissions intensity
56
305-5 Reduction of GHG emissions
-
305-6 Emissions of ozone-depleting
substances (ODS)
-
305-7 Nitrogen oxides (NOx), sulfur
oxides (SOx), and other significant air
emissions
-
GRI 306: Waste 2020
306-1 Waste generation and
significant waste-related impacts
-
306-2 Management of significant
waste-related impacts
-
306-3 Waste generated
-
306
-
4 Waste diverted from disposal
-
306-5 Waste directed to disposal
-
GRI 308: Supplier
Environmental Assessment
2016
308-1 New suppliers that were
screened using environmental criteria
-
308-2 Negative environmental
impacts in the supply chain and
actions taken
GRI 401: Employment 2016
401-1 New employee hires and
employ
ee turnover 36, 37
401-2 Benefits provided to full-time
employees that are not provided to
temporary or part-time employees
-
401-3 Parental leave
-
GRI 402: Labor/Management
Relations 2016
402-1 Minimum notice periods
regarding operational changes
-
GRI 403: Occupational Health
and Safety 2018
403-1 Occupational health and safety
management system
-
403-2 Hazard identification, risk
assessment, and incident
investigation
-
403-3 Occupational health services
-
403-4 Worker participation,
consultation, and communication on
occupational health and safety
-
403-5 Worker training on occupational
health and safety
-
403
-6 Promotion of worker health
-
403-7 Prevention and mitigation of
occupational health and safety impacts
directly linked
by business
relationships
-
403
-8 Workers covered by an
occupational health and safety
management system
-
Consolidated Non-financial Report of ASBISc Enterprises Plc for 2022
83
403-9 Work-related injuries
-
403
-10 Work-related ill health
-
GRI 404: Training and Education
2016
404
-
1 Average hours of training per year
per
employee
44
404-2 Programs for upgrading
employee skills and transition
assistance programs
-
404-3 Percentage of employees
receiving regular performance and career
development reviews
-
GRI 405: Diversity and Equal
Opportunity 2016
405-1 Diversity of governance bodies
and employees
27, 36-37
405-2 Ratio of basic salary and
remuneration of women to men
39-40
GRI 406: Non
-
discrimination 2016
406-1 Incidents of discrimination and
corrective actions taken
48
GRI 407: Freedom of Association
and
Collective Bargaining 2016
407-1 Operations and suppliers in which
the right to freedom of association and
collective bargaining may be at risk
-
GRI 408: Child Labor 2016
408-1 Operations and suppliers at
significant risk for incidents of child labor
-
GRI 409: Forced or Compulsory
Labor 2016
409-1 Operations and suppliers at
significant risk for incidents of forced or
compulsory labor
-
GRI 410: Security Practices 2016
410-1 Security personnel trained in
human rights policies or procedures
-
GRI 411: Rights of Indigenous
Peoples 2016
411-1 Incidents of violations involving
rights of indigenous peoples
-
GRI 413: Local Communities 2016
413-1 Operations with local community
engagement, impact assessments, and
development programs
45-46
413-2 Operations with significant actual
and potential negative impacts on local
communities
-
GRI 414: Supplier Social
Assessment 2016
414-1 New suppliers that were screened
using social criteria
-
414-2 Negative social impacts in the
supply chain and actions taken
-
GRI 415: Public Policy 2016
415
-1 Political contributions -
GRI 416: Customer Health and
Safety 2016
416-1 Assessment of the health and
safety impacts of product and service
categories
-
416-2 Incidents of non-compliance
concerning the health
and safety
impacts of products and services
-
GRI 417: Marketing and Labeling
2016
417
-1 Requirements for product and
service information and labeling
-
417-2 Incidents of non-compliance
concerning product and service
information and labeling
-
417-3 Incidents of non-compliance
concerning marketing communications
-
GRI 418: Customer Privacy 2016
418-1 Substantiated complaints
concerning breaches of customer privacy
and losses of customer data
50
