Partner of Choice

DOMO has reported the information cited in this GRI content index for the period January – December 2022 in accordance with the GRI Standards.

We strongly believe that an essential determining factor to becoming a partner of choice lies in moving our product offerings towards a sustainable solutions portfolio. We focus on our engineered materials market segment as we have determined it to be the most promising in terms of sustainable applications. In our product offerings, we increasingly focus on the utilization of recycled feedstock. In 2022, we recorded 11.3% sustainable solutions sold out of our total EM sales. By 2030, we aim to raise this number to 20%.

Our customers’ sustainability challenges are our own, and we believe in creating applications that contribute to achieving these, including e-mobility, lightweight materials, water management, and solar energy. In 2022, our R&D application center was actively exploring solutions for post-consumer feedstock alternatives, while investments in innovative chemical recycling technologies continue to account for approximately 25% of all R&D expenditure.

We continue to perform life cycle assessments to enable our customers to reduce their emissions and consider their impact on other key environmental topics. Life cycle assessments allow us to analyze the full environmental impact of our product offerings, from conception, to sourcing and production, ultimately giving us insights into how to improve the environmental performance of our portfolio. We performed over 100 life cycle assessments in 2022 and continue to use their findings to fuel our materials sourcing and
manufacturing decisions. Our objective is to reduce the carbon footprint of our top sellers by 20% by 2030. In 2022, we achieved an average of 4.2 kg CO2eq/kg of product sold.

At DOMO, we have pledged to help our customers fulfill their sustainability goals by offering an enhanced range of sustainable solutions, with a 2030 target to double the revenue of our existing circular solutions.

To support this pledge, together with dedicated partners, we are investing in the development of a circularity roadmap to identify the most efficient and valuable recycling technologies, allowing us to transition from a linear to a circular, resource-efficient economy.

To further advance our circular solutions roadmap, our latest R&D focus has been on developing chemical recycling capabilities. More specifically, in 2022, we studied three main technologies to make progress on chemical recycling:

• The depolymerization of PA6 waste
• Dissolving polyamide waste
• Polyamide and silicon separation improvement and efficiency to specifically
• tackle the airbag waste feedstock.

To achieve our chemical recycling ambitions, we are partnering with waste collection companies, waste generators, and chemical recycling companies, as well as partners to develop sorting, cleaning, waste preparation and filtering capabilities.

Moreover, we continue to evaluate new partnerships. These innovative measures are in line with our ambition to both reduce our internal environmental footprint, as well as be a partner of choice and deliver sustainable solutions for our stakeholders.

In 2022, we concentrated on building a resilient, risk-mitigating supply network design. Our sustainable procurement ambitions have strengthened, stemming from a common understanding that sustainable purchasing is an opportunity for lowering our product footprint and co-creating sustainable value
with our key supply chain partners.

Our main focus in 2022 was on building sustainable supplier solutions, through:

• Selecting partners with low environmental impact for raw materials and packaging,
• Selecting partners with low logistic environmental impact and fostering the same approach for our own flows
• Integrating and formalizing sustainability aspects in suppliers’ relationships.

To reach these objectives, we have begun the process of structuring a supply chain management approach, which can be summarized into the following steps:

We want to ensure that our supply chain and any third parties we work with uphold the same commitment to sustainability as we do, both internally and towards their third parties.

To do so, we implemented a Supplier Code of Conduct in 2022, to set forth expectations for suppliers and service providers around business ethics, integrity, working conditions, environment, and health and safety aspects.

Having integrated this code of conduct as a contractual term in our supplier contracts, we expect 50% of our 80/20 suppliers to have adhered to this code by 2023.

With our ambition to become a benchmark for sustainability, we aim to go beyond compliance with socio-environmental standards. Accordingly, we have set up a performance assessment system through which we can closely collaborate with our suppliers by:

• developing our own standardized corporate social responsibility (CSR) questionnaire,
• which suppliers are asked to fill in and return. For high ecological impact supplier categories, additional questions must be completed,
• conducting supplier visits, particularly on the topic of health and safety, to ensure that quality standards are met and that safety measures are implemented throughout our value chain,
• promoting and requesting comprehensive data on supplier materials’ life cycle assessments, as our value chain remains a core element of our decarbonization roadmap.

We value open collaboration and long-term relationships. This is why we continuously engage on these topics with our suppliers, and host regular meetings to explore solutions as partners. Whenever warranted, we undertake capacity-building activities, ranging from supplier training to issuing corrective actions for suppliers to act upon non-conformities.