Alfa Financial Software : Financial Reporting Document

Quick-Reference Guide to ESG at Alfa

We include a lot of information in our 2020 Annual Report(particularly within the ESG section at pg 56 - pg 63) and on our ESG page, so this document is intended to act as a roadmap of the areas where we receive most questions. Should you require any further information on ESG at Alfa, please get in contact with our CFO, Duncan Magrath ([e-mail]).

AREA	ROADMAP	FURTHER INFO
OUR GUIDING PRINCIPLES
Our people	Many of Alfa's people are engaged in a wide variety of socially responsible activities, and Alfa actively	Our Social Impact page
	supports and encourages this. Alfa's dedicated Social Impact Team has been in place for over 15 years,
	with team members drawn from across the Company.	pg 61-62 of our 2020 Annual Report
			on Alfa Green Team / Environmental
	Alfa provides everyone with 3 days per year to support Social Impact / ESG activities. These are charged to	Impact Team initiatives
	an ESG time code. The total time charged to this code is approximately 1 FTE - of which approximately
	50% relates to climate change issues.
United Nations	Alfa has selected four sustainable development goals to help shape and inform our ESG efforts:	Our dedicated UN SDG page
Sustainable
Development	∙	Quality education
Goals	∙	Gender Equality
	∙	Climate Action
	∙ Partnerships for the Goals
Our values	Alfa's company values are:	Our purpose and values page
	∙ Challenge without being challenging
	∙ Let great ideas grow
	∙ Create a positive impact
	∙ Make it better together
ENVIRONMENT
Responsibility	Alfa's CFO, Duncan Magrath, is ultimately responsible for our Environmental Policy and climate change
	issues. One of the aims of our Environmental Policy is to carry out our business in a manner that minimises
	our impact on the environment.

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	Alfa's ESG Manager, Grahame Williams, oversees all initiatives which derive from this policy as they are put
	into action.
	The Alfa Green Team / Environmental Impact Team, a group of volunteers from all levels of the company,
	is responsible for the execution of organised activities and the monitoring of standards established to
	ensure adherence to our environmental goals.
Emissions	Alfa's footprint is calculated using the EMA methodology for SECR Reporting on calculating organisational	Pg 63 of our 2020 Annual Report
monitoring and	footprints. Alfa plans to follow TCFD reporting guidelines for our 2021 Annual Report.
reduction; TCFD
Carbon neutrality	Alfa has implemented offsetting for carbon neutrality during the course of 2021, by partnering with	Pg 62 - pg 63 of our 2020 Annual
and net zero	Ecologi.	Report
	Alfa has already taken steps to reduce carbon emissions. Alfa's next steps are to update our corporate
	policies to move to further reduce carbon emissions.
Environmental	Alfa's Environmental Policy includes a commitment to continue to engage and educate employees and	Pg 53 of our 2020 Annual Reporton
awareness and	other stakeholders on the importance of sustainability, and encourage sustainable activity.	consulting stakeholders
consulting
stakeholders	The Alfa Green Team / Environmental Impact Team is heavily involved in raising awareness, and the UK-	pg 62 of our 2020 Annual Reporton
	based charity, The Climate Coalition, has been chosen by Alfa's UK employees as Alfa's UK charity partner	Alfa Green Team / Environmental
	for the 2021-2022 fiscal year.	Impact Team initiatives
Electricity	Alfa sources our electricity from renewable energy provider, Opus. During 2020, 68% of Alfa's UK
	electricity was sourced from renewable sources.
Our office	Alfa's London office has achieved an 'excellent' rating under the BREEAM In-Use certification for 2021/22.
buildings
Our office	Alfa has carefully selected suppliers and implemented various initiatives in our London office, to minimise
environment	our impact on the environment - here is a taster:
	∙ Partnering with bio-bean,to renew our used coffee grounds for reuse in bio-products.
	∙ Installing organic food waste bins to collect left over food and turn it into compost.
	∙ Using eco-friendlyMethodcleaning products.
	∙ Offering staff participation in the Cycle to Work scheme.
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Responsible end-	Alfa's Data and Equipment Disposal Policy covers off securely and sustainably disposing of IT equipment,
of-life	including laptops.
management of
hardware	Alfa recycles technical hardware that cannot be donated to charity and has recently partnered with e-
	recycling company KOcycle, to recycle all outdated IT hardware that is no longer used in the London office.
	Alfa also had a 'recycling laptops to schools' initiative in 2021.
Sustainable	Alfa is committed to adopting and applying the latest technology, including server virtualisation
products and	technology, to ensure that our customers' energy consumption is kept to a minimum.
services
	Our product, Alfa Systems, provides some functionality to enable our customers to charge their customers
	on a usage basis, therefore making utilisation of assets more efficient.
Our data centres	In owned data centres, our provider has noted that 94% of our energy utilisation was from renewable	Our page on Alfa Systems Cloud
	energy sources.	Hosting
	Alfa also uses data centres operated by a third-party, AWS Cloud Computing. AWS is committed to
	powering operations with 100% renewable energy by 2025.
SOCIAL
Equal	Non-discrimination on the grounds of sex, sexual orientation, pregnancy, gender reassignment, religion or
opportunities and	belief, marital status, civil partnership status, age, race, colour, nationality, national or ethnic origins and
non-	disability is central to Alfa's Building Business and Careers and Equal Opportunities and Hiring Policy.
discrimination
	During 2020, Alfa developed and delivered Inclusive Recruitment training for everyone involved in the
	recruitment process. Alfa also provided Unconscious Bias and Allyship training company-wide.
Commitment to	Responsibility: Inclusion & Diversity is very important to the Board and wider employees. Inclusion &	Pg 24,pg 57and pg 61of our 2020
Inclusion &	Diversity is a corporate objective owned by Alfa's Chief People Officer. Progression against this corporate	Annual Report
Diversity	objective is reported monthly to the Company Leadership Team and to the Board.
				Our dedicated Inclusion & Diversity
	Alfa has multiple communities: Inclusion, LGBTQ+, Racial Equity, Women's Community, Parents'	page
	Community, Environmental Impact and Social Impact. Each of our communities has a Company Leadership
	Team sponsor whose role it is to support, facilitate and remove barriers to enable the community's	Our blog postsincluding one
	agenda. The Chief People Officer meets monthly with the community chairs to discuss what support is	discussingnon-binaryidentityand
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	needed, what activities are coming up and how the community can increase awareness across the	announcing the launch of the Alfa for
	company.	Racial Equity community
	Intersectionality: In 2020, we focused on intersectionality between our communities, creating an Inclusion
	& Diversity Advisory Group to encourage discussion, sharing & joining up of agendas and collective drive
	on our Inclusion & Diversity agenda.
	Education and awareness: Programmes in this area are very much in demand within Alfa. As well as a
	calendar of social talks and events organised by our active communities, Alfa also ran a series of Inclusion
	and Diversity workshops in 2020 and has been rolling out an Inclusive Leadership training programme.
	Alfa using its voice: Alfa is a Stonewall Diversity Champion: Alfa is committed to providing an environment
	where all LGBTQ+ people are free to be themselves. Externally we have highlighted important issues by
	using our corporate voice to support and champion bodies such as the Black British Network,Stonewall,
	DIAL Globaland theWomen's Association.
	Policies: The principle of freedom of discrimination embedded within Alfa's policies generally are
	underpinned by our Harassment Policyand our Disciplinary Policy.
Gender pay gap	The mean and median pay gaps have reduced between 2019 and 2020. 2021 results will be available in our	Pg 59 of our 2020 Annual Report
data	2021 Annual Report.
Gender diversity	30% of our people are female. 49% of our new graduates for 2021 are female and 40% of all new recruits	Pg 57and pg 78of our 2020 Annual
	in 2021 are female.	Report
Contractors	Of the 406 people who worked at Alfa during 2020, 6.4 % were contractors.
Supporting our	Alfa has an array of policies and initiatives in place to support our people:	Pg 57 - 58and pg 72of our 2020
people				Annual Report
	∙ Various family friendly policies, covering paid adoption and surrogacy leave, enhanced paternity
	and maternity leave and shared parental leave.
	∙ Paid carer leave.
	∙ Transitioning at Work Policy, supported by guides for managers.
	∙ A global Mental Health First Aider (MHFA) programme, where individuals trained as MHFAs act as
	points of contact for colleagues who are experiencing a difficult time or emotional distress.
	∙ Employee Assistance Programme, to provide 24/7 support for employees, including counselling.
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	∙ A very active Alfa Wellbeing team, providing regular content and holding events with experts on
	various topics.
	∙ 24hr online service to access GP advice.
	∙ Flexible and hybrid working and remote working policies.
	In addition to the 3 days per year provided to employees to support Social Impact / ESG / CSR activities,
	Alfa also provides employees at least 3 days per year for personal development; and 4 days per year for
	innovation, which is open to any projects and initiatives that improve life at Alfa.
Retaining our	Alfa's full time staff voluntary turnover rates for 2020 stood at (i) 10.6% for all workers (including	Pg 47 of our 2020 Annual Report
people	employees); and (ii) 5.9% for employees only.
Engaging with our	Alfa runs an employee-engagement survey every 2 months. The results are presented by the CEO to the	See references in the 2020 Annual
employees	Board. Any concerns raised are reviewed by a committee of employees and allocated to the appropriate	Report to the 'Pulse' survey - pg 14,
	Company Leadership Team member for resolution. In addition, Alfa also holds quarterly townhalls where	pg 37,pg 54,pg 58andpg 65
	employees can submit questions anonymously to the Company Leadership Team.
Accessibility	Alfa is committed to ensuring Alfa Systems is accessible as possible and has a dedicated UI/UX Design team
	who have accessibility as part of their core remit. This team has carried out accessibility audits of the Alfa
	Systems software, part of which was informed by the Web Content Accessibility Guidelines (WCAG). The
	audit also compared our software against the WCAG 2.1 AA specification and allowed us to identify and
	prioritize specific accessibility gaps. For new Alfa Systems components added to our Design System we
	consider accessibility up-front, ensuring the correct ARIA attributes are added etc. and we perform screen
	reader testing using the VoiceOver tool.
Supplier	Alfa does not support any form of slavery, human trafficking or child labour and Alfa works only with	Pg 72 of our 2020 Annual Report
standards	suppliers that have been assessed through our internal processes to be ethical providers. Alfa has an
	ethical procurement policy and our key procurement personnel have been trained in relation to the
	relevant requirements and regulations.
Data protection	Alfa has maintained compliance with the following in 2020:	Pg 43and pg 48of our 2020 Annual
and customer		Report
security	∙ SOC2 Type 2(safeguarding customer data),
	∙ ISO27001(information security management system),	Our Alfa Systems Cloud Hosting page
	∙ ISO27018(protection of personally identifiable information in public clouds - covering the
	processes and security of our Alfa Hosting Service).	Alfa Privacy Policy
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