Evaluation

We conducted a profound materiality assessment in our 2022 ESG evaluation to identify key sustainability challenges for Radial.

Double Materiality

Utilizing the double materiality framework, we examined issues from both impact and financial perspectives. Our approach assessed how Radial’s operations affect society and the environment, and how external risks and opportunities could impact the company financially. This dual analysis ensures comprehensive stakeholder consideration.

Our total emssions of 62.4 mtCO₂e, which equals 7.0 mtCO₂e per Headcount(PY: 15.9 mtCO₂e, which equaled 4.9 mtCO₂e per Headcount), are entirely Scope II or Scope III as we do not own assets such as buildings or vehicles. The majority of emissions (58.0 mtCO₂e) result from Scope III upstream activities, mostly business travel, purchased goods and services. Scope II emissions (3.9 mtCO₂e) result from purchasing electricity for laptops and other electronic devices.

The increase compared to the prior year from an absolute perspective is mostly related to the growth of the business and the team as well as the first full year of business. Excluding one-off effects, emissions per Heacount could have been reduced to 4.8 mtCO₂e per Heacount compared to 4.9 mtCO₂e in FY22. Through donations, Radial offset an equivalent of 64.0 mtCO₂e and therefore overcompensates net zero.

Despite our ambition to limit business travels, as well as our achieved reduction of emissions per Headcount, travelling accounts for more than 52.8% of our total emissions (thereof, 40.2% airplane travelling, 6.4% non-company car travelling, and 6.2% overnight stays). A one-off effect in FY23 relates to the construction of new office premises in Munich accounting for 30.7% of our total emissions. Furthermore, cloud data traffic amounts to 4.1% of total emissions. The remaining approx. 12.4% of our total emissions relate to the production and the transport of goods, as well as the consumption of electricity and water due to our office premises.

As business travel accounts for more than 53% of our emissions, we are committed to further reduce travel whenever possible and choose trains or public transportation over other modes of transportation. Of 115,945 kilometers (PY: 34,500 kilometers) travelled, 37.6% (PY: 41.5%) were covered by train or public transportation. The increased airplane use, and the usage of rental cars were due to projects where alternatives would have led to disproportionate efforts.

108 hotel overnight stays (PY: 44) incurred and 465 individual business meals (PY: 236) have been consumed, mostly driven by business and team growth and the first full year of business.

In terms of gender distribution, the gender quota improved to 77% men (8) (PY: 80% (4)) and 23% women (3) (PY: 20% (1)). This shift not only reflects our commitment to creating a balanced workforce but also highlights our efforts in fostering an inclusive environment where talent thrives regardless of gender.

There is no gender pay gap due to our internally fully transparent and rank-dependent salaries for all team members. This policy ensures that pay is commensurate with role and performance, not gender, contributing to a culture of fairness and equality.

As a member of Charta der Vielfalt, we promote the recognition, appreciation and integration of diversity in our business culture.

Client satisfaction is one of our central KPIs, also in the context of our team incentive system. In client satisfaction, we achieved an average rating of 4.9 out of 5 stars based on a total of 14 projects rated by clients in FY23.

We achieved 5 of 5 stars in employee satisfaction. Around 45 hours per FTE were invested in Learning & Development. Every team member has access to individual coaching, promoting mental health and personal development. Through our benefits with Belonio (“Deutschlandticket” and lunch subsidies), as well as Wellpass allowing access to various gyms and wellness centers, we foster a sustainable way of travelling and physical health for our team members.

In FY23, Radial did not invest time from the team into charitable projects, mainly due to high team utilization and not available capacities. In FY 22, Radial team members invested 114 hours on charitable projects, mostly the Learning Lions initiative initiated by Prince Ludwig von Bayern.

Radial (including team members) donated a total of EUR 4,525 (PY: EUR 2,427) to charitable organizations as per the Radial Pledge.