Ovzon
Ovzon - ESG profile (ABG Sundal Collier)
2019-09-27 16:36
Risks and opportunities
Through its mobile broadband service, via satellite capacity, Ovzon’s services contribute to the reduction of physical transports and enhance the communication between various parties in rural areas. Currently, most of its sales stem from the US Department of Defense, where we have little insight into how the company’s products are used. Therefore, we see an ESG risk if it turned out that the products were being used in operations that violate international human rights. Furthermore, as its customers are heavily dependent on safe and reliable products, it is important that Ovzon maintains good quality management control of its own offering, as well as the solutions provided by its suppliers. We also see risks related to corruption, given that the lion’s share of the company’s revenues are from public authorities.
Quality control and working with anti-corruption is important
The company has identified 16 ESG issues inspired by the Global Reporting Initiative. These include initiatives such as zero tolerance of corruption, increased use of local suppliers, and a reduction in its environmental footprint. By working on anti-corruption and responsibility with its suppliers, Ovzon can create more reliable products. According to its website, Ovzon has launched partnerships that relate to wildlife preservation. Here, the objective is to offer communication infrastructure that can help wardens and rangers to prevent poaching. Furthermore, the company works on having good gender equality and diversity. We note that women are under-represented in the company’s workforce, management and board of directors, although we believe that this is largely a reflection of a male-dominated sector.
Through its mobile broadband service, via satellite capacity, Ovzon’s services contribute to the reduction of physical transports and enhance the communication between various parties in rural areas. Currently, most of its sales stem from the US Department of Defense, where we have little insight into how the company’s products are used. Therefore, we see an ESG risk if it turned out that the products were being used in operations that violate international human rights. Furthermore, as its customers are heavily dependent on safe and reliable products, it is important that Ovzon maintains good quality management control of its own offering, as well as the solutions provided by its suppliers. We also see risks related to corruption, given that the lion’s share of the company’s revenues are from public authorities.
Quality control and working with anti-corruption is important
The company has identified 16 ESG issues inspired by the Global Reporting Initiative. These include initiatives such as zero tolerance of corruption, increased use of local suppliers, and a reduction in its environmental footprint. By working on anti-corruption and responsibility with its suppliers, Ovzon can create more reliable products. According to its website, Ovzon has launched partnerships that relate to wildlife preservation. Here, the objective is to offer communication infrastructure that can help wardens and rangers to prevent poaching. Furthermore, the company works on having good gender equality and diversity. We note that women are under-represented in the company’s workforce, management and board of directors, although we believe that this is largely a reflection of a male-dominated sector.
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