2022 Communication on Progress

Digimarc Corporation

Published date

June 21, 2022

No. of questions

64

Supplemental files

CEO Statement

Signed

  • Governance

    Policies and Responsibilities

    1. Does the Board / highest governance body or most senior executive of the company:

    2. Does the company have a publicly stated commitment regarding the following sustainability topics?

    No, this is not a current priority

    No, but we plan to have a commitment within 2 years

    Yes, and the commitment is focused on our own operations

    Yes, and the commitment includes our own operations and the value chain

    Yes, and the commitment includes our own operations and the value chain along with communities and society

    Human Rights

    Labour Rights / Decent Work

    Environment

    Anti-Corruption

    Optional comment
    Human Rights Policy: https://dmrcmktdocs.blob.core.windows.net/documents/FDPNE5UQXF2K-806070712-249.pdf; Discrimination and Harassment Free Workplace Policy: https://dmrcmktdocs.blob.core.windows.net/documents/FDPNE5UQXF2K-806070712-238.pdf; Equal Employment Opportunity Policy https://dmrcmktdocs.blob.core.windows.net/documents/FDPNE5UQXF2K-806070712-247.pdf; Environmental Policy https://dmrcmktdocs.blob.core.windows.net/documents/FDPNE5UQXF2K-806070712-246.pdf; Code of Business Conduct including Anti-Corruption https://dmrcmktdocs.blob.core.windows.net/documents/FDPNE5UQXF2K-806070712-242.pdf

    3. Does the company have in place a code of conduct regarding each of the following sustainability topics?

    No, this is not a current priority

    No, but we plan to have a code of conduct within two years

    Yes, focused on employee conduct

    Yes, focused on employees and suppliers

    Yes, focused on employees, suppliers, and other business relationships

    Human Rights

    Labour Rights / Decent Work

    Environment

    Anti-Corruption

    4. Has the company appointed an individual or group responsible for each of the following sustainability topics?

    No one is specifically responsible for this topic

    Yes, with limited influence on outcomes (e.g., limited access to internal information, limited decision-making authority)

    Yes, with moderate influence on outcomes (e.g., has access to relevant information, reports to senior manager)

    Yes, with direct influence of some outcomes (e.g., has access to relevant information, includes one or more senior manager with decision making rights

    Yes, with direct influence at the highest levels of the organization (e.g., has access to relevant information, includes most senior members of organization)

    Human Rights

    Labour Rights / Decent Work

    Environment

    Anti-Corruption

    Optional comment
    Our Board of Directors' Governance, Nominating, and Sustainability Committee is responsible for oversight on these sustainability topics. Further, the most appropriate member of the executive management team is assigned responsibility for our performance on each of these sustainability topics. More information is available in our ESG Impact Report 2021: https://dmrcmktdocs.blob.core.windows.net/documents/FDPNE5UQXF2K-806070712-274.pdf

    5. Does the company have a formal structure(s) (such as a cross-functional committee) to address each of the following sustainability topics?

    No formal structure

    Yes, and with limited influence on outcomes (e.g., limited access to internal information necessary to understand risks, poor representation from relevant departments or functions)

    Yes, with moderate influence on outcomes (e.g., it includes representatives of some functions, departments, or business units most relevant for addressing the risks concerned, has access to relevant information, reports to senior manager)

    Yes, with direct influence on some outcomes (e.g., it includes representatives of functions, departments, or business units most relevant for addressing the risks concerned, has access to relevant information, it involves one or more members of senior management)

    Yes, and with direct influence at the highest level of the organization (e.g., full access to relevant information, it involves members at highest level of organization)

    Human Rights

    Labour Rights / Decent Work

    Environment

    Anti-Corruption

    Prevention

    6. Does the company have a process or processes to assess risk?

    No, this is not a current priority

    No, but we are planning to develop one in the next two years

    Yes, related to our own operations

    Yes, related to our own operations and entire value chain and other business relationships

    Human rights risks

    Labour rights risks

    Environmental risks

    Corruption risks

    6.1. During the assessment of risk, which business relationships are reviewed?

    A few suppliers or business relationships [approximately less than 25 %]

    Several suppliers / business relationships (i.e., first tier or other high priority) [approx. 25 - 50 %]

    Most suppliers / relevant business relationships [approx. 51 - 99 %]

    All suppliers / relevant business relationships outside the supply chain

    Human rights risks

    Labour rights risks

    Environmental risks

    Corruption risks

    7. Does the company have a due diligence process through which it identifies, prevents, mitigates, and accounts for actual and potential negative impacts on sustainability topics?

    No, this is not a current priority

    No, but we are planning to develop one in the next two years

    Yes, related to our own operations

    Yes, related to our own operations and entire value chain and other business relationships

    Human rights risks

    Labour rights risks

    Environmental risks

    Corruption risks

    Concerns and grievance mechanisms

    8. Are there any processes through which members of the company’s workforce can raise concerns about the company’s conduct related to human rights, labour rights, environment, or anti-corruption?

    Optional comment
    Digimarc maintains an independent, third-party whistleblower mechanism for use by employees and other stakeholders.

    8.1. Please provide additional detail regarding the process(es) the company has through which members of the company’s workforce can raise concerns about the company’s conduct.

    No

    Yes

    Is the process communicated to all employees/workers in local languages?

    Is the process available to non-employees (e.g., contractors, vendors, suppliers)?

    Is the process confidential (e.g., whistleblowing process)?

    Are there processes in place to avoid retaliation?

    Can concerns be raised about suppliers or other business relationships (e.g., clients, partners, etc.)

    Other (Please provide additional information)

    9. Does the company provide or enable access to effective remedy to right holders / stakeholders where it has caused or contributed to the adverse impact?

    No process to enable remedy to stakeholders

    Remedy available to some stakeholders (i.e., some geographies, employees only)

    Remedy is available to all affected stakeholders

    Remedy is available to all stakeholders, and suppliers are expected to have similar policies

    Human Rights

    Labour Rights / Decent Work

    Environment

    Anti-Corruption

    Optional comment
    Digimarc commits to corrective action as warranted by an investigation, as outlined in our Whistleblower Policy.

    Lessons

    10. How does the company capture lessons regarding each of the following sustainability topics?

    No lessons are regularly captured

    Conducts root cause analyses/investigation of major incidents

    Conducts root cause analyses/investigation and changes organizational policies, processes, and practices accordingly

    Systematically conducts root cause analyses/investigation and leverages learnings to influence both internal and external affairs

    Human Rights

    Labour Rights / Decent Work

    Environment

    Anti-Corruption

    Optional comment
    No reported incidents have required changes in organizational policies, processes, or practices.

    Executive Pay

    11. Is executive pay linked to performance on one or more of the following sustainability topics?

    No, and we have no intention to change

    No, but we plan to within two years

    Yes

    Human Rights

    Labour Rights / Decent Work

    Environment

    Anti-Corruption

    Optional comment
    In response to shareholder feedback over several years, the Company has revamped the executive compensation program to ensure alignment with Digimarc’s growth strategy and shareholder value creation. The program will continue to evolve. The performance-based incentive program is focused on key financial and strategic drivers of success. Given the environmental and social sustainability applications of our products, strategic success is directly linked to our ability to positively impact sustainability issues through our core business.

    Board Composition

    12. Percentage of individuals within the company’s Board / highest governance body by:

    Number/Percentage

    Not applicable (Please provide additional information)

    Total number of board members (#)

    8

    Male (%)

    62.5

    Female (%)

    37.5

    Non-binary (%)

    0

    Under 30 years old (%)

    0

    30-50 years old (%)

    75

    Above 50 years old (%)

    25

    From minority or vulnerable groups (%)

    37.5

    Executive (%)

    12.5

    Independent (%)

    87.5

    13. Do you produce sustainability reporting according to:

    United Nations Sustainable Development Goals (SDGs)

    Data Assurance

    14. Is the information disclosed in this questionnaire assured by a third-party?

  • Human Rights

    Materiality / Saliency

    1. Which of the following has the company identified as material human rights issues connected with its operations and/or value chain, whether based on their salience (i.e., the most severe potential negative impacts on people) or another basis?

    Optional comment
    Digimarc elaborates on its Human Rights priorities in our ESG Impact Report 2021, our Human Rights Policy, and our Vendor Code of Conduct.

    Commitment

    2. Does the company have a policy commitment in relation to the following human rights issues?

    No, and we have no plans to develop a policy

    No, but we plan to in the next two years

    Yes, included within a broader policy

    Yes, articulated as a stand-alone policy

    Rights of women and/or girls

    Freedom of expression

    Rights of refugees and migrants

    Digital security / privacy

    2018

    Rights of indigenous peoples

    Access to culture

    Free, prior and informed consent

    Access to water and sanitation

    Optional comment
    Digimarc's Privacy Policy (https://www.digimarc.com/about/privacy-policy) elaborates on our personal data collection practices and how we respect individuals' right to privacy.

    2.1. For each human rights policy, is it:

    Aligned with international human rights standards?

    Publicly available?

    Approved at most senior level of the company?

    Applied to the company’s own operations?

    Applied to the company’s supply chain and/or other business relationships?

    Developed involving human rights expertise from inside and outside the company?

    Other (Please provide additional information)

    Freedom of expression

    Digital security / privacy

    Rights of women and/or girls

    Access to culture

    Rights of indigenous peoples

    Free, prior and informed consent

    Rights of refugees and migrants

    Access to water and sanitation

    Optional comment
    Our Privacy Policy is written to comply with the highest international standards of data protection and privacy, such as the EU GDPR. The policy is available on our website and addresses both our own processing of personal data, as well as how we interact with third parties in the context of data sharing.

    Prevention

    3. In the course of the reporting period, has the company engaged with affected stakeholders or their legitimate representatives in relation to the following human rights issues?

    No engagement on this topic

    To better understand the risks/ impacts in question

    To discuss potential ways to prevent or mitigate the risks/ impacts in question

    To agree on a way to prevent/ mitigate the risks/ impacts in question

    To assess progress in preventing /mitigating the risks/impacts in question

    To collaborate in the prevention/ mitigation of the risks/ impacts in question

    Rights of women and/or girls

    Freedom of expression

    Rights of refugees and migrants

    Digital security / privacy

    Rights of indigenous peoples

    Access to culture

    Free, prior and informed consent

    Access to water and sanitation

    4. What type of action has the company taken in the reporting period with the aim of preventing/mitigating the risks/impacts associated with this human rights issue?

    Provided internal training/ capacity building for the direct workforce

    Building capacity among relevant business relationships (e.g., partners, suppliers, clients, etc.)

    Conducting an audit process and/or corrective action plan

    Collective Action with peers or other stakeholders to address the issue

    Collaboration with governmental or regulatory bodies

    Other (Please provide additional information)

    No action within reporting period

    Rights of women and/or girls

    Freedom of expression

    Rights of refugees and migrants

    Digital security / privacy

    Rights of indigenous peoples

    Access to culture

    Free, prior and informed consent

    Access to water and sanitation

    Optional comment
    As a result of the acquisition of EVRYTHNG Ltd., a comprehensive review of privacy policies and practices ensures consistency across global operations and alignment with best practices and leading regulation. Digimarc continues to centralize personal data housed on-site to better manage its retention and use of data and to facilitate response to data subject access.

    5. Who receives training for the following human rights issues?

    No training provided

    Select employees

    All employees

    Contractors

    Direct suppliers of the organization

    Indirect suppliers of the organization

    Other – such as partners, clients, etc.

    Rights of women and/or girls

    Freedom of expression

    Rights of refugees and migrants

    Digital security / privacy

    Rights of indigenous peoples

    Access to culture

    Free, prior and informed consent

    Access to water and sanitation

    6. How does the company assess progress in preventing/mitigating the risks/impacts associated with the following human rights issues?

    No monitoring of progress

    Review issues on ad-hoc basis

    Set annual targets/ goals, track progress over time (internal programs only)

    Set annual targets/ goals, track progress over time (internal and external programs)

    Other (Please provide additional information)

    Rights of women and/or girls

    Freedom of expression

    Rights of refugees and migrants

    Digital security / privacy

    Rights of indigenous peoples

    Access to culture

    Free, prior and informed consent

    Access to water and sanitation

    Optional comment
    Customer privacy and data security are material impacts under Digimarc's ESG Framework. Accountability and Responsibility are assigned to Impact Owners and Impact Managers, respectively, in the most appropriate departments. As part of the ESG Framework, these impacts are subject to the development of plans, goals, and regular monitoring.

    Response

    7. During the reporting period, has the company been involved in providing or enabling remedy where it has caused or contributed to adverse impact associated with the following human rights issue(s)?

    Yes

    No

    Choose to not disclose

    Not applicable (Please provide additional information)

    Rights of women and/or girls

    Freedom of expression

    Rights of refugees and migrants

    Digital security / privacy

    Digimarc did not cause or contribute to any known adverse impacts associated with this human rights issue.

    Rights of indigenous peoples

    Access to culture

    Free, prior and informed consent

    Access to water and sanitation

    8. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the human rights principles, including any challenges faced and actions taken towards prevention and/or remediation.

    Our 2021 ESG materiality assessment re-emphasized the importance of protecting human rights within our organization and throughout our value chain. Especially as we become a more global company, we bear a greater responsibility for protecting and respecting the rights of our people and those around us. Digimarc has published a Human Rights Policy on its website. The policy expresses our commitment to respecting human rights and outlines the principles on which we base our approach. In the policy, we identify our company’s key areas of impact on human rights, including our responsibilities towards our employees, partners, and suppliers. Our Human Rights Policy commits us to conducting due diligence to identify and address human rights risks in our operations and business relationships. In 2022, we will explore the best way forward for a comprehensive Human Rights Due Diligence exercise in line with international best practices, and will report on our plans, progress, and outcomes.

  • Labour

    Commitment

    1. Does the company have a policy commitment in relation to the following labour rights principles?

    No, and we have no plans to develop a policy

    No, but we plan to in the next two years

    Yes, included within a broader policy

    Yes, articulated as a stand-alone policy

    Not applicable (Please provide additional information)

    Freedom of association and the effective recognition of the right to collective bargaining

    2021

    Forced labour

    2021

    Child labour

    2021

    Non-discrimination in respect of employment and occupation

    2020

    Occupational safety and health

    2021

    Working conditions (wages, working hours)

    2021
    Optional comment
    Digimarc's labor rights policies and commitments are contained in the following documents: Code of Business Conduct (https://dmrcmktdocs.blob.core.windows.net/documents/FDPNE5UQXF2K-806070712-242.pdf); Vendor Code of Conduct (https://dmrcmktdocs.blob.core.windows.net/documents/FDPNE5UQXF2K-806070712-253.pdf); Discrimination and Harassment Free Workplace Policy (https://dmrcmktdocs.blob.core.windows.net/documents/FDPNE5UQXF2K-806070712-238.pdf); and Safety and Health policy (https://dmrcmktdocs.blob.core.windows.net/documents/FDPNE5UQXF2K-806070712-252.pdf)

    1.1. For each labour rights policy, is it:

    Aligned with international labour standards?

    Publicly available?

    Approved at most senior level of the company?

    Applied to the company’s own operations?

    Applied to the company’s supply chain and/or other business relationships?

    Developed involving labour rights expertise from inside and outside the company?

    Other (Please provide additional information)

    Freedom of association and the effective recognition of the right to collective bargaining

    Forced labour

    Child labour

    Non-discrimination in respect of employment and occupation

    Occupational safety and health

    Working conditions (wages, working hours)

    Prevention

    2. In the course of the reporting period, has the company engaged with affected stakeholders or their legitimate representatives in relation to the following labour rights issues?

    No engagement on this topic

    To better understand the risks/ impacts in question

    To discuss potential ways to prevent or mitigate the risks/ impacts in question

    To agree on a way to prevent/ mitigate the risks/ impacts in question

    To assess progress in preventing/ mitigating the risks /impacts in question

    To collaborate in the prevention/ mitigation of the risks/ impacts in question

    Other (Please provide additional information)

    Freedom of association and the effective recognition of the right to collective bargaining

    Forced labour

    Child labour

    Non-discrimination in respect of employment and occupation

    Occupational safety and health

    Working conditions (wages, working hours)

    3. What type of action has the company taken in the reporting period with the aim of preventing/mitigating the risks/impacts associated with this labour rights issue?

    Provided internal training/ capacity building for the direct workforce

    Building capacity among relevant business relationships (e.g., partners, suppliers, clients, etc.)

    Conducting an audit process and/or corrective action plan

    Collective Action with peers or other stakeholders, in particular workers' organizations, to address the issue

    Collaboration with governmental or regulatory bodies

    Other (Please provide additional information)

    No action within reporting period

    Freedom of association and the effective recognition of the right to collective bargaining

    Forced labour

    Child labour

    Non-discrimination in respect of employment and occupation

    Occupational safety and health

    Working conditions (wages, working hours)

    4. Who receives training for the following labour rights issues?

    No training provided

    Select employees

    All employees

    Contractors

    Direct suppliers of the organization

    Indirect suppliers of the organization

    Other – such as partners, clients, etc.

    Freedom of association and the effective recognition of the right to collective bargaining

    Forced labour

    Child labour

    Non-discrimination in respect of employment and occupation

    Occupational safety and health

    Working conditions (wages, working hours)

    5. How does the company assess progress in preventing/mitigating the risks/impacts associated with the following labour rights issues?

    No monitoring of progress

    Review issues on ad-hoc basis

    Set annual targets/ goals, track progress over time (internal programs only)

    Set annual targets/ goals, track progress over time (internal and external programs)

    Other (Please provide additional information)

    Freedom of association and the effective recognition of the right to collective bargaining

    Forced labour

    Child labour

    Non-discrimination in respect of employment and occupation

    Occupational safety and health

    Working conditions (wages, working hours)

    Performance

    6. What is the percentage of employees covered under collective bargaining agreements?

    Percent of employees (%)

    Unknown

    Employees covered under collective bargaining (%)

    0

    7. What is the percentage of employees in a trade union or other workers' organization?

    Percent of employees (%)

    Unknown

    Not applicable (Please provide additional information)

    Employees in a trade union or on a worker committee (%)

    0

    8. In the course of the reporting period, what was the percentage of women in:

    Percent of women (%)

    Unknown

    Senior leadership level position

    30

    Non-executive board

    37.5

    9. What was the average ratio of the basic salary and remuneration of women to men (comparing jobs of equal value) during the reporting period?

    Salary ratio (%)

    Unknown

    Choose to not disclose

    Women / Men (%)

    In 2021, our Human Resources team led a market assessment of our compensation and benefits. The results informed widespread adjustments to enhance our market position and support talent retention. The assessment also explicitly considered pay equity implications. As a result of the recently completed acquisition of EVRYTHNG Ltd., our Human Resources team continues to analyze and monitor remuneration data across our combined organizations. We will report this data after a comprehensive review of our company-wide pay equity ratios.

    10. In the course of the reporting period, how frequently were workers injured (injuries per hour worked)?

    Frequency of injury

    Unknown

    Choose to not disclose

    Frequency of injury

    0

    11. In the course of the reporting period, what was the company’s incident rate?

    Incident rate

    Unknown

    Choose to not disclose

    Incident rate

    0

    Response and Reporting

    12. In the course of the reporting period, has the company been involved in providing or enabling remedy where it has caused or contributed to the adverse impact associated with the following labour rights issues?

    Yes

    No

    Choose to not disclose

    Not applicable (Please provide additional information)

    Freedom of association and the effective recognition of the right to collective bargaining

    Digimarc did not cause or contribute to any known adverse impacts associated with this labor rights issue.

    Forced labour

    Digimarc did not cause or contribute to any known adverse impacts associated with this labor rights issue.

    Child labour

    Digimarc did not cause or contribute to any known adverse impacts associated with this labor rights issue.

    Non-discrimination in respect of employment and occupation

    Digimarc did not cause or contribute to any known adverse impacts associated with this labor rights issue.

    Occupational safety and health

    Digimarc did not cause or contribute to any known adverse impacts associated with this labor rights issue.

    Working conditions (wages, working hours)

    Digimarc did not cause or contribute to any known adverse impacts associated with this labor rights issue.

    13. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the labour rights principles, including any challenges faced and actions taken towards prevention and/or remediation.

    Digimarc’s Human Resources policies protect our employees’ health and safety, and provide a number of benefits to support their emotional and physical well-being. We recognize the important role we play in enabling a healthy work-life balance for our employees, which in turn supports our ability to attract, retain, and engage high-quality talent. We expanded our parental and pregnancy leave policies in 2021 to ensure our colleagues feel supported during this important time. For example, by increasing paid pregnancy leave from eight to 16 weeks, we not only prioritize our team members’ physical and emotional wellbeing, but also recognize the important inclusion benefits this can generate. Digimarc also enables employee participation in a third-party provided employee assistance program (EAP) to access support for issues such as stress management and counseling, among others.

  • Environment

    Commitment

    1. Does the company have a formal policy on the following environmental topics?

    No, and we have no plans to develop a policy

    No, but we plan to in the next two years

    Yes, included within a broader policy

    Yes, articulated as a stand-alone policy

    Not applicable (Please provide additional information)

    Climate Action

    2021

    Water

    Oceans

    Forests / Biodiversity / Land Use

    Air Pollution

    2021

    Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)

    2021

    Energy & Resource Use

    2021
    Optional comment
    Digimarc has adopted a formal Environmental & Climate Change Policy (https://dmrcmktdocs.blob.core.windows.net/documents/FDPNE5UQXF2K-806070712-246.pdf)

    1.1. For each environmental policy, is it:

    Aligned with international environmental standards?

    Publicly available?

    Approved at most senior level of the company?

    Applied to the company’s own operations?

    Applied to the company’s supply chain and/or other business relationships?

    Developed involving environmental expertise from inside and outside the company?

    Other (Please provide additional information)

    Climate Action

    Water

    Oceans

    Forests / Biodiversity / Land Use

    Air Pollution

    Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)

    Energy & Resource Use

    Prevention

    2. In the course of the reporting period, has the company engaged with affected stakeholders or their legitimate representatives in relation to the following environmental issues?

    No engagement on this topic

    To better understand the risks/ impacts in question

    To discuss potential ways to prevent or mitigate the risks/ impacts in question

    To agree on a way to prevent/ mitigate the risks/ impacts in question

    To assess progress in preventing/ mitigating the risks/ impacts in question

    To collaborate in the prevention/ mitigation of the risks/ impacts in question

    Other (Please provide additional information)

    Climate Action

    Water

    Oceans

    Forests / Biodiversity / Land Use

    Air Pollution

    Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)

    Energy & Resource Use

    3. What type of action has the company taken in the reporting period with the aim of preventing/mitigating the risks/impacts associated with these environmental topics?

    Provided internal training/ capacity building for the direct workforce

    Building capacity among relevant business relationships (e.g., partners, suppliers, clients, etc.)

    Conducting an audit process and/or corrective action plan

    Collective Action with peers or other stakeholders to address the issue

    Collaboration with governmental or regulatory bodies

    Other (Please provide additional information)

    No action within reporting period

    Climate Action

    Water

    Oceans

    Forests / Biodiversity / Land Use

    Air Pollution

    Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)

    Energy & Resource Use

    Optional comment
    Our primary environmental impacts are focused on the potential of our products to solve important environmental challenges for our clients and society. We have worked with customers, partners, civil society, trade organizations, and regulators to share knowledge about and collaborate to scale product digitization's ability to help solve environmental challenges. Our ESG Impact Report 2021 elaborates on how we engage with stakeholders on environmental sustainability issues.

    4. How does the company assess progress in preventing/mitigating the risks/impacts associated with the following environmental topics?

    No monitoring of progress

    Review issues on ad-hoc basis

    Set annual targets/ goals, track progress over time (internal programs only)

    Set annual targets/ goals, track progress over time (internal and external programs)

    Other (Please provide additional information)

    Climate Action

    Water

    Oceans

    Forests / Biodiversity / Land Use

    Air Pollution

    Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)

    Energy & Resource Use

    Optional comment
    Planet forms a key pillar of Digimarc's ESG Framework, which guides our planning, target setting, and progress monitoring for our operational environmental impacts. Meanwhile, Digimarc's product digitization solutions are particularly relevant to the challenges of waste and climate change through plastic recycling sortation applications. Digimarc's development of its ESG Framework and its Product pillar is focused on quantifying these external impacts to enable goal setting and progress monitoring.

    4.1. For each environmental topic in which the company sets timebound goals / targets, what kind of targets has the company set?

    Description of targets (e.g., what is the target, absolute vs. intensity, externally verified, on track, etc.)

    Climate Action

    Digimarc is at an early stage of measuring its performance on climate related risks and opportunities. Having worked towards an integrated management structure that assigns formal responsibility for climate change management, Digimarc is committed to conducting a comprehensive GHG inventory exercise based on our rapidly expanding global footprint. Establishing a baseline of our climate related performance globally will enable robust target setting in the future.

    Energy & Resource Use

    Water

    Forests / Biodiversity / Land Use

    Air Pollution

    Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)

    Digimarc watermarks provide a powerful digital identity that can support more accurate recyclability of plastics and other materials, solving an important technological aspect of this complex challenge. Among the benefits of digital watermarking for this application is that our technology enables the identification of plastics that were previously too difficult to identify, such as carbon black packaging and separating food grade and non-food grade containers. Digimarc digital watermarks are at the center of a pan-European initiative addressing the plastics recycling crisis. Driven by AIM - European Brands Association and powered by the Alliance to End Plastic Waste, over 160 companies and organizations from the complete packaging value chain have joined forces for the Digital Watermarks Initiative HolyGrail 2.0. The objective of the initiative is to prove the viability of digital watermarking technologies for accurate sorting and the business case at scale. In June 2022, we announced a partnership with the Circular Plastic Taskforce (CPT) to test Digimarc Recycle for optimizing the sortation of flexible plastic packaging in Canada, a first in North America. The two-stage project aims to test the solution in a real-life environment. Our participation in the HolyGrail 2.0 initiative and partnership with CPT is at the core of how we fulfill our pledge to the Ellen MacArthur Foundation’s New Plastics Economy Global Commitment. As a signatory to the Global Commitment, we have pledged to support the plastics packaging industry through collaborative projects for development of harmonized technology to increase sorting accuracy, obtain higher yields of recyclates, and drive recycling through consumer engagement. Each year, we report on our progress towards this pledge on our website. The next iteration of our New Plastics Economy Global Commitment report will be available in July 2022.

    Oceans

    4.2. For each environmental topic in which the company sets timebound goals / targets, how is progress against target / goal tracked?

    Progress is reviewed against goals annually or more frequently

    Progress is reported internally to the most senior level

    Progress is reported externally

    Other (Please provide additional information)

    Climate Action

    We have committed to setting climate-related targets following a comprehensive GHG inventory exercise. Once we have set targets, progress towards them will be reviewed at least annually, reported to executive management and the Board, and reported externally.

    Energy & Resource Use

    Water

    Forests / Biodiversity / Land Use

    Air Pollution

    Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)

    Oceans

    Optional comment
    As a signatory to the Global Commitment, we have pledged to support the plastics packaging industry through collaborative projects for development of harmonized technology to increase sorting accuracy, obtain higher yields of recyclates, and drive recycling through consumer engagement. Each year, we report on our progress towards this pledge on our website. The next iteration of our New Plastics Economy Global Commitment report will be available in July 2022.

    5. In the course of the reporting period, has the company been involved in providing or enabling remedy for any actual impacts associated with the following environmental issue(s)?

    Yes

    No

    Choose to not disclose

    Not applicable (Please provide additional information)

    Climate Action

    Digimarc did not cause or contribute to any known adverse impacts associated with this environmental issue.

    Water

    Digimarc did not cause or contribute to any known adverse impacts associated with this environmental issue.

    Oceans

    Digimarc did not cause or contribute to any known adverse impacts associated with this environmental issue.

    Forests / Biodiversity / Land Use

    Digimarc did not cause or contribute to any known adverse impacts associated with this environmental issue.

    Air Pollution

    Digimarc did not cause or contribute to any known adverse impacts associated with this environmental issue.

    Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)

    Digimarc did not cause or contribute to any known adverse impacts associated with this environmental issue.

    Energy & Resource Use

    Digimarc did not cause or contribute to any known adverse impacts associated with this environmental issue.

    Climate Action

    6. What were the company’s gross global greenhouse gas emissions for the reporting period?

    Scope 1 Emissions

    Emissions (tCO2e)

    Scope 2 Emissions

    Emissions (tCO2e)

    Scope 3 Emissions

    Emissions (tCO2e)

    Optional comment
    Scope 1 (Full): 13.5 tCO2e. Scope 2 (Full): 0 tCO2e. Scope 3 (Partial): 122.1 tCO2e.

    6.1. Which Scope 3 categories are included in the organization’s scope 3 emissions calculation?

    7. What percentage of the company's revenue was invested in R&D of low-carbon products/services during this reporting period?

    Percent of revenue (%)

    Optional comment
    A significant focus for Digimarc's product development and R&D is the Digimarc Recycle product and our participation in the HolyGrail 2.0 project.

    8. Has the organization acted to support climate change adaptation and resilience?

    Energy / Resource Use

    9. Please report the company's renewable energy consumption as a percentage of total energy consumption in the reporting period.

    % of total energy consumption

    100

    Technology

    10. What percent of the company's revenue came from environmentally friendly products / services during this reporting period?

    Percent of total revenue (%)

    Optional comment
    A significant focus for the business is our Digimarc Recycle product, which helps solve the plastic recycling challenge by enabling more accurate sortation of plastic waste.

    Sector-specific Questions

    11. Which sector(s) does the company operate in? If diversified, choose top 3 by revenue.

    Overall Environment

    21. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the environment principles, including any challenges faced and actions taken towards prevention and/or remediation.

    Even though Digimarc has a relatively small environmental footprint, we know that our stakeholders perceive our contribution to planetary challenges like climate change and resource scarcity as a vital part of our ESG profile. We are committed to measuring and managing our Planet impacts to make sure we are not inadvertently having significant negative effects in our operations or our supply chain, and instead can lead by example and work with our employees, business partners, suppliers, and other stakeholders to minimize our footprint. Recognizing the significance of cloud computing to our full value-chain carbon footprint, Digimarc has worked with our service providers to measure our usage and associated greenhouse gas emissions for 2021. We have encountered challenges in measuring this data due to legacy contracts with these service providers, and therefore are only able to disclose partial Scope 3 cloud computing emissions data for 2021, covering cloud computing usage for one of our business units and internal tools, which emitted an estimated 0.2 tons CO2e. Looking ahead, we will focus on working with our service providers to improve transparency of our cloud computing-related carbon footprint. We believe that managing our operational resource consumption in terms of energy, water, and waste is a cornerstone of being a responsible company. Our employee-driven Green Team has helped Digimarc make gradual improvements over several years to manage our resources more efficiently. As we move forward, we emphasize structural measurement and management with the goal of minimizing our impact on the environment, avoiding the risk of exasperating resource stresses, and respecting our communities’ resources. For more information about our actions, plans, and key environmental data, please see our ESG Impact Report 2021 (https://dmrcmktdocs.blob.core.windows.net/documents/FDPNE5UQXF2K-806070712-274.pdf)

  • Anti-corruption

    Commitment

    1. Does the company have an anti-corruption compliance programme?

    2022

    2. Does your company have policies and recommendations for employees on how to act in case of doubt and/or in situations that may represent a conflict of interest, e.g. with regard to gifts and hospitality, donations, sponsorship, or interactions with public officials?

    Optional comment
    Digimarc's Code of Business Conduct elaborates on our policies with regard to conflicts of interest, bribery, and corruption. (https://dmrcmktdocs.blob.core.windows.net/documents/FDPNE5UQXF2K-806070712-242.pdf)

    Prevention

    3. Who receives training on anti-corruption and integrity?

    3.1. How often is such training provided?

    One time only

    Every year

    Every two or more years

    We do not collect this data

    All employees

    Select employees

    Contractors

    Direct suppliers of the organization

    Other – such as partners, clients, etc.

    Indirect suppliers of the organization

    4. Does the company monitor its anti-corruption compliance programme?

    Response and Reporting

    5. Please report the company's total number and nature of incidents of corruption during the reporting year.

    Number of incident(s)

    Unknown

    Choose to not disclose

    Confirmed during the current year, but related to previous years

    0
    Not applicable - no incidents.

    Confirmed during the current year, and related to this year

    0
    Not applicable - no incidents.

    6. Within the reporting period, what measures has the company taken to address suspected incidents of corruption independently or in response to a dispute or investigation by a government regulator?

    7. Does your company engage in Collective Action against corruption?

    8. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the anti-corruption principle, including any challenges faced and actions taken towards prevention and/or remediation.

    Digimarc's training for all employees on anti-corruption, bribery, and other compliance topics was materially updated in 2022. The training was designed to be more accessible and engaging, reflecting the importance of this topic to our company.