ESG
L-SOFT’s corporate social responsibility
What is ESG?
ENVIRONMENTAL
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The environmental aspect valuate how a company behaves in relation to the environment, such as what energy sources it uses, how it handle waste, how it uses natural resources or how it treats animals. This includes both the direct effects of the company and the effects of activities in the supply chain.
SOCIAL
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The social criteria examine how a company manages its relations with its employees, suppliers, customers and communities. These criteria include, for example, working conditions, employee health and safety, staff relations and diversity, and/or follow-activities in conflict areas.
GOVERNANCE
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Corporate governance deals with the governance, executive pay, audits, internal audit and shareholder rights. In addition, it includes issues such as gender equality and equal pay, bribery, corruption and board diversity.
L-SOFT's commitment
Our company is committed to a sustainable future. Taking responsibility for the economic, social and environmental impacts of our business activities is an important part of our strategic objectives.
In the course of our software product and service development activities and our general operations, we pay special attention to our social responsibility and the protection of our natural environment, and to maintaining and ensuring ethical business conduct. At the same time, we strive to reduce our carbon footprint.
Strategic directions for sustainability
L-SOFT Zrt. is committed and takes responsibility for the economic, social and environmental impact of its activities. We involve our employees in the design and operation of our program to support the achievement of the set goals, and we continuously train and inform them.
ESG reports
We consider it important that the performance of authentic activities that fit the organization and organizational culture of L-SOFT continuously improve according to the aspects of the ESG evaluation, thereby meeting our own and our partners’ expectations. We publish the sustainability report of L-SOFT Zrt. every year.
EcoVadis certification
The EcoVadis certification shows how a company integrates the principles of social responsibility into its daily operations and processes. It is an excellent indicator of where a company stands on the path to sustainable development.
Key sustainability issues
In the framework of the social responsibility project, we carried out an analysis to determine sustainability topics.
This was the basis for selecting the topics and activities that L-SOFT should deal with in relation to sustainability. To define topics:
► We conducted a benchmark analysis
► We examined relevant professional research
► We analyzed the Sustainability Accounting Standards Board (SASB) sustainability reporting framework industry standard. SASB is one of the most internationally sustainability guidelines.
Based on the above, we have identified seven topics in connection with which the sustainability impact of our company is significant:
► Fair and inclusive workplace
► Talents and development
► Climate change and environmental protection
► Community engagement
► Responsible procurement practices
► Control
► Digitization and innovation
These themes contribute to the achievement
of the following UN Sustainable Development Goals
Digitalization and innovation
L-SOFT’s mission is to be the most innovative Hungarian HR service provider, so we constantly examine how our portfolio contributes to HR’s most important work organization goals, quick results in increasing employee satisfaction, and corporate sustainability strategic goals by using the latest available technologies. We are convinced that our contribution to sustainability can be most effective by promoting digitalization and innovation.
Our company operates an integrated management system, and is also committed to devoting regular, measurable time to the development of software that promotes digitalization and to participating as a speaker at professional conferences.
Our objective:
► At least maintain the current – high – level of time spent on developing software products.
A fair and inclusive workplace
The most important resource of L-SOFT Zrt. is its highly qualified employees, therefore fair employment and a welcoming work environment are essential for us. We consider legal and ethical behavior in relation to employees to be just as important as in all areas of our operation. We accept and value individual differences, and we expect respect for personal dignity under all circumstances.
Our company’s Code of Ethics sets out the standards of behavior we undertake towards our employees and partners, as well as the standards expected of them. The Code is public and available to anyone on our website.
L-SOFT conducts employee engagement measurements at regular intervals with the involvement of an external company. Regarding fair and inclusive workplaces, in 2022, we won the gold-certified responsible employer title in the competition announced by the National Employment Foundation (OFA), which was granted for 2 years.
Our objective:
► To increase the percentage of satisfied employees
We want to increase our satisfaction rate and be open to the ideas of our employees.
► To maintain the title of Responsible Employer
Climate change and
environmental protection
A responsibly operating company must necessarily pay attention to the global challenges of climate change and environmental protection and reduce its ecological footprint in view of the extent of its own effects. Through digitalization, L-SOFT’s products contribute to the reduction and avoidance of paper-based information storage, in addition, we make the use of digital capacities efficient by operating server parks, thereby contributing to the reduction of unused storage capacities in some cases.
We strive to reduce energy consumption, we operate in an energy-efficient building that partially uses renewable energy sources. We continously replace diesel vehicles in our fleet. When providing services, we prefer online platforms. We have developed selective waste collection and developed our waste management regulations. Our employees received environmental awareness training.
Our objective:
► We want to expand the separate collection of waste
► Improve waste management awareness and start measuring paper consumption.
Community engagement
We are committed to helping local communities, we want to support civil initiatives and important social causes. Our responsibility is realized by supporting aid organizations and collecting donations. We have defined guidelines for the provision of grants, based on which L-SOFT supports three organizations from 2020 and this number increased to 5 in 2022.
Our objective:
► We want to increase the support of smaller, local civil organizations, especially local programs, and we want to encourage and support employee volunteering.
Responsible sourcing
L-SOFT Zrt. is in contact with hundreds of suppliers, therefore it is important what principles we implement in our purchases . It is important for us to contact local service providers if they are available in the given area.
We have developed our responsible purchasing policy, which covers the social and environmental aspects of the topic, sets the minimum requirements and defines the aspects of responsible choice. Due to our operation, we place special emphasis on the procurement of IT products and devices. Our procurement staff received training in responsible procurement.
Our objective:
► We strive to ensure that our suppliers also accept the code of ethics and that it becomes part of our contracts with them.
Talent management and development
L-SOFT Zrt. considers the search, attraction, development and retention of talented employees to be essential for its long-term success. We are convinced that the development of our colleagues is one of the most important means of employee retention. Our company offers the opportunity to develop skills and lifelong learning. Internal training, online and offline external professional training and education ensure the professional and personal development of our employees. By creating life path models, we ensure that starting employees can acquire the necessary competencies and for that we design a development direction for them.
We consider it important to embrace talent and provide local employment opportunities for highly qualified young people. To this end, we cooperate with higher education institutions in the framework of internship programs.
Our objective:
► We can extend the regular performance evaluation to all our employees. In addition, we are looking for the opportunity to support the organization of academic competitions with both financial resources and expertise.
Control
Our company considers it necessary to establish regulated frameworks in the area of sustainability as well.
For that matter, we have created documents regulating the framework of ESG, such as the Code of Ethics, Environmental Protection Policy, Waste Management Regulations, Procurement Policy, Donation Guidelines. Our company monitors cases related to corruption, information security, discrimination, and abuse. We have also appointed an ESG person in charge.
Our objective:
► Maintain compliance with the law and ethical standards, establish an Ethics Committee to investigate such matters and provide whistleblowing opportunities for those concerned.
