ESG Framework and Reporting

The context in which the Company operates has been transformed by climate impact, nature loss, and social unrest around inclusion and working conditions. This new global environment is challenging the traditional expectations of corporations and redirecting investment capital. Global sustainable investment now tops $30 trillion, up 68% since 2014 and tenfold since 2004. DigitalX is charting a course to build resilience and enhance our social licence through a greater commitment to long-term, sustainable value creation that embraces the wider demands of people, planet and shared prosperity.

The Board of the Company has resolved to adopt the World Economic Forum (WEF) ESG framework and instructed management to set up an impact measurement plan for each sustainability area which includes, but is not limited to, governance, anti-corruption practices, ethical behaviour, human rights, carbon emissions, land use, ecological sensitivity, water consumption, diversity and inclusion, pay equality and tax payments.

To ensure that DigitalX can measure, monitor, and report on its ESG disclosure progress, the Company has engaged impact monitoring technology platform Socialsuite to streamline the disclosure and ongoing ESG reporting process. The Company’s goal is to demonstrate commitment and progress on making ESG disclosures, but more broadly, aims to progress a range of ESG benchmarks as set out by the WEF’s ESG White Paper.

While our business is creating an inherent positive impact, the adoption of the WEF framework has already paid ESG dividends. The Company will provide regular updates on its ESG disclosure progress and seek to ensure that our business remains an impact investment for shareholders and local communities.

The Company has deployed Socialsuite’s ESG Go technology platform to set its initial ESG baseline. With a tailored action plan, the Company will focus on delivering and reporting ongoing progress toward disclosing and improving ESG metrics and indicators.

Socialsuite’s ESG Go reporting technology provides an easy way for investors and other stakeholders to assess the commitment and progress of the Company on its journey to create “best in class” ESG credentials and outcomes.

To follow the Company's progress towards it's ESG objectives please refer to our ESG Dashboard

ESG Metrics

As part of the WEF ESG framework, the Company is making progress in its disclosures against the WEF Stakeholder Capitalism framework which covers 21 core metrics across the four pillars of governance, planet, people and prosperity.

ESG Disclosures

Through out the course of the year the Company releases a number of reports that contain ESG disclosures, these include:

There are also a number of standing policies:

In addition to this the Company has made a number of disclosures below.

The Company makes the following disclosures with respect to governance metrics:

Anticorruption (GO-04)
100% of all staff have been trained on the Company's anti-bribery and corruption policy (ABC) as part of induction. The Company is the process of developing a policy and practice for training business partners.

There have been no actual or suspected incidents of corruption during the current year.

Risk Management (GO-05)
As part of its compliance with Corporate Governance Principle 7.2 the Board of Directors reviews the Company's risk management framework annually and receives a quarterly risk review from Management.

As part of the adoption of the WEF ESG framework in September 2021 the Company has updated its risk management framework to incorporate ESG considerations.

Securities Trading Management
In addition to the disclosures above, the Company, as part of its commitment to good governance also utilises the Drawbridge solution to manage compliance with its Securities Trading Policy.

While the Company's current operations do not have a significant environmental impact, the Company recognises the risk posed by climate change and the potential for impact on businesses.

The Company makes the following additional disclosures with respect to planet metrics:

Greenhouse Gas (GHG) Emissions (PL-01-A)
The Company is currently assessing its approach to the GHG Protocol Corporate Accounting and Reporting Standard.

Currently, the majority of the Company's emissions come from its Company's corporate office in Perth, WA. The Company does not currently operate any heavy equipment, motor vehicles or other emission producing equipment.

Task for Climate-related Financial Disclosures (TCFD) implementation (PL-01-B)
The updated 2021 TCFD recommendations cover disclosures across Governance, Strategy, Risk Management and Metrics & Targets related to climate.

While the Company believes its climate related risks are low given the digital nature of the Company and its operations it does note the ongoing discussions related to the impact of Bitcoin and digital assets on the environment. While no formal policy has been developed the Company's intention is to work with upstream providers committed to ESG such as Binance Australia and source digital assets mined with renewable energy.

The Company aims to be compliant with the TCFD recommendations by 2024.

Land use and ecological sensitivity (PL-02)
Due to the nature of the Company's operations this is not a material area and therefore disclosures not required.

Water consumption (PL-03)
Due to the nature of the Company's operations this is not a material area and therefore disclosures not required.

The Company makes the following additional disclosures with respect to its people metrics.

Wage Level (PE-01-C)

The ratio of average entry level wage compared to local minimum wage is 1.57 for all genders.

This does not take into account other benefits such as fringe benefits or participation in the Company's Employee Incentive Plan.

Child, forced or compulsory labour (PE-01-D)

The majority of the Company's material suppliers are Australian based professional service organisations or technology providers.

As at 31 December 2021, the Company has reviewed its material suppliers and considered there are no suppliers that are considered to have a significant risk of child labour, forced or compulsory labour.

Health and Safety (PE-02)

There was no reported fatalities, high consequence work related injuries, or recordable work related injuries in the 12 months to 31 December 2021.

The absentee rate for the 12 months end 31 December 2021 was 1.07% (224 / 20,800).

The Company places an emphasis on mental health. As part of its commitment to mental health, all staff have access to the Company's Employee Assistance Program with Clearhealth Psychology.

Training Provided (PE-03)

The Company places a high importance on training and is exemplified in our value "Never stop developing". The total training expenditure for the 12 months to 31 December 2021 was $28,497 at an average of $2,849 per person.

The Company makes the following additional disclosures with respect to prosperity metrics:

Rate of Employment (PR-01)
During the 12 months to 31 December 2021 the Company hired 11 new staff, of the new staff hired:

- 4 identified as female and 7 identified as male; and
- 6 were between the age of 30 and 40, 3 were between the age of 40 and 50 and 2 were over 50.

During the 12 months to 31 December 2021, 3 employees ceased employment with the Company. All employees were male between the age of 30 - 40.

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.