Galooli Climate Transition Plan

Galooli’s Climate Transition Plan: Leading the Charge to a Sustainable Future.

The Importance of Sustainability and Climate Action

In today’s world, addressing climate change is no longer optional—it’s a necessity. At Galooli, we are committed to playing a vital role in limiting global warming to 1.5°C, as outlined in the Paris Agreement. Achieving Net Zero emissions by 2050 and halving greenhouse gas (GHG) emissions by 2030 are central to our sustainability strategy. We believe that a thriving economy should work in harmony with a healthy planet, and we are dedicated to integrating these values into every aspect of our business.

A Principled Approach to Sustainability

At Galooli, we take a principled and transparent approach to our climate transition efforts. Our sustainability strategy is embedded into every aspect of our business—from governance and operations to long-term strategic planning. Our leadership and employees are fully committed to these efforts, ensuring that sustainability remains a top priority within our corporate culture. We set clear, time-bound goals and allocate the necessary budgetary resources to achieve them. These goals are embedded into our annual and long-term planning to ensure we are aligned with global climate goals and remain accountable to our stakeholders.

Galooli’s governance framework upholds a range of policies and procedures that ensure sustainability throughout the entire value chain. These include rigorous supplier standards, sustainable procurement practices, and lifecycle assessments to minimize environmental impacts at every stage. Our approach guarantees that both our direct operations and those of our partners align with our sustainability commitments, reinforcing our dedication to building a greener future.

Quality & Environment Management Policy

Galooli hereby adopts the ISO 9001:2015 Quality Management Standard and the ISO 14001:2015 Environment Management Standard. Our aim is to provide customers with professional, high-quality services aimed at:

Empowering efficiency and sustainability through Remote Energy Management. More specifically, Galooli develops, markets, and sells cloud-based artificial intelligence SaaS solutions designed to optimize energy sources and maximize the efficiency and performance of remote assets.

• Commitment to Excellence: Galooli strives for excellence and professionalism in all its activities, maintaining fair, long-term relationships with customers, suppliers, and employees. Caring for environmental issues is an integral part of our organizational culture.

• Customer Satisfaction: Customer satisfaction is paramount to our success. We are committed to meeting customer requirements as agreed upon, ensuring their fulfillment.

• Valuing Human Resources: Galooli considers its human resources as its most important asset in achieving the company's goals. Management and staff are fully committed to providing the necessary resources to achieve business excellence while minimizing risks related to quality and the environment.

• Monitoring and Improvement: Galooli continuously monitors the quality of its products and services and the effectiveness of its quality and environment management systems. This ongoing scrutiny supports a continuous improvement process and ensures compliance with all legal and regulatory requirements.

• Proactive Environmental Responsibility: Galooli adopts a proactive, preventive approach to minimize environmental pollution risks to an acceptable level. We manage waste and resources responsibly and foster an organizational climate that encourages environmental action.

 Life Cycle Assessment

The Life Cycle Transition Plan Chart maps our activities in key areas such as Training, Operations, and R&D, highlighting essential working processes like planning, development, and procurement. The chart tracks our product outputs, including Gateways and EMS SaaS, alongside their environmental impacts—both positive and negative—ensuring we continuously optimize performance and align with our sustainability commitments and long-term environmental goals.

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Monitoring and Reporting on GHG Emissions

Galooli takes its responsibility for monitoring and reducing GHG emissions seriously. We use advanced technologies to track our direct (Scope 1) and indirect (Scope 2 and 3) emissions, ensuring transparency in our reporting. Our monitoring efforts align with industry best practices and frameworks, including ISO 14001. Galooli also commits to sharing regular progress reports with stakeholders, showcasing how we’re driving change towards a more sustainable future.

 Roles and Responsibilities

The following section outlines the key roles and responsibilities within Galooli’s Climate Transition Plan, ensuring that leadership and employees are aligned with the company’s sustainability strategy, based on ISO 14001 guidelines. This section focuses on high-level responsibilities and the internal reporting structure to ensure clear oversight and accountability for climate-related goals.

1. CEO

• Reporting: The CEO reports directly to the Board of Directors. Board meetings are held quarterly or more frequently if necessary.

• Responsibilities: The CEO oversees Galooli’s overall climate strategy, ensuring alignment with corporate objectives and long-term sustainability goals. He also approves resources for sustainability initiatives and serves as a member of the Emergency Response Team, contributing to operational resilience and crisis management. Additionally, the CEO presents the ISO 14001 Yearly Management Survey to the Board, providing an overview of the company's environmental performance and compliance.

2. CPO (Chief Partnerships Officer)

• Reporting: The CPO works in coordination with the CEO.

• Responsibilities: The CPO oversees environmental governance and plays a central role in strategy development and implementation across company verticals. He leads ISO 9001 and ISO 14001 compliance efforts and manages future environmental risks and opportunities. The CPO monitors corporate environmental policies, sets targets, tracks progress, and conducts scenario analysis, while also serving on the Emergency Response Team.

3. Environment/Sustainability Manager

• Reporting: The Environment/Sustainability Manager reports to the COO.

• Responsibilities: The manager works closely with the COO, focusing on implementing environmental policies, managing compliance, and driving continuous improvement in sustainability metrics. He supports ISO 14001 compliance and coordinates with both internal and external stakeholders. Among other thigs, he prepares the ISO 14001 Yearly Management Survey, ensuring the report meets all requirements and aligns with Galooli's environmental performance goals.

4. CFO

• Reporting: The CFO reports to the CEO and Management and provides regular financial updates to the management team.

• Responsibilities: The CFO manages the company's budget, ensuring that financial resources are allocated effectively to meet strategic sustainability goals. He is also responsible for monitoring and reporting on greenhouse gas emissions, particularly through the Financial Control approach, while managing risks and financial planning related to environmental initiatives.

5. COO (Chief Operations Officer)

• Reporting: The COO reports to the management team.

• Responsibilities: The COO oversees logistics, procurement, and compliance with environmental policies. He ensures suppliers meet environmental standards, manages the sustainable disposal of hardware, increases recycling efforts, and leads employee training on environmental practices. The COO also chairs the Procurement Manager and serves as a member of the Disaster Management Team, playing a key role in risk assessment and environmental strategy.

6. CTO

• Reporting: The CTO reports to the management team.

• Responsibilities: The CTO leads research and development of environmental technologies embedded in Galooli’s Remote Management Systems (RMS). He focuses on reducing energy consumption at the server level and contributes to crisis management as a member of the Emergency Response Team, ensuring that technological developments align with environmental objectives.

7. CRO (Chief Revenue Officer)

• Reporting: The CRO reports to the management team.

• Responsibilities: The CRO ensures that environmental considerations are integrated into the product development process, particularly through the Product Requirements Document (PRD). He serves on the Disaster Management Team and oversees the Product Division’s alignment with sustainability goals throughout the product lifecycle.

8. Risk Committee

• Composition: The Risk Committee includes the CEO, CPO, CTO, Environment/Sustainability Manager, and CRO.

• Responsibilities: The committee conducts regular risk assessments, focusing on managing environmental risks and ensuring compliance with ISO 9001 and ISO 14001 standards. It meets quarterly and leads targeted risk management solutions as needed.

9. Safety, Health, Environment, and Quality Committee

• Responsibilities: This committee ensures Galooli’s compliance with ISO 14001, ISO 9001, ISO 27001, and GDPR. It oversees all aspects of Quality and Environmental Management, ensuring that Galooli meets relevant standards and best practices across its operations.

These roles ensure that Galooli’s Climate Transition Plan is effectively managed across all organizational levels, with clear accountability, reporting structures, and a focus on integrating environmental policies into the company’s strategic and operational frameworks.

Financial Planning

In Galooli's financial planning process, environmental concerns are integrated into both short-term and long-term budgeting to ensure that sustainability remains a priority across all areas of the business.

Budget planning follows the TCFD guidelines as outlined in the 'TCFD Alignment and Integration' section, ensuring that resources are allocated effectively to mitigate climate-related risks. The key principles guiding this process are as follows:

1. Environmental Considerations in Budgeting: Whether planning the annual budget, multi-year financial forecasts, or specific project funding, the management team takes environmental issues into account. This includes allocating the necessary resources to support sustainability initiatives and compliance with environmental regulations.

2. Cross-Vertical Environmental Budgeting: Budgetary concerns related to environmental issues are addressed across all of Galooli's verticals, including Product Development, Research and Development (R&D), Governance, and Operations. This ensures that each department has the resources needed to meet environmental targets and contribute to the company's sustainability goals.

3. External Validation and Audits: Part of the environmental budget is allocated to work with external evaluation bodies. These organizations validate Galooli's Key Performance Indicators (KPIs), sustainability targets, goals, and results, ensuring accuracy, transparency, and alignment with international standards.

4. Integration with ISO Standards: Environmental funding is embedded in the company's operations as part of its Quality Management System (ISO 9001) and Environmental Quality Management System (ISO 14001). This ensures that environmental concerns are systematically addressed and funded within the company's broader management and operational frameworks.

This approach ensures that Galooli’s financial resources are allocated in a way that supports its environmental commitments while aligning with its operational and strategic goals.

Risk Assessment

Galooli regularly monitors and evaluates environmental risks on a cross-operational basis, covering direct operations, the upstream value chain (suppliers), and the downstream value chain (distributors and customers) on a global scale, including both the headquarters and subsidiaries. This continuous risk assessment ensures that the company is well-prepared to address environmental challenges across its entire value chain.

TCFD Alignment and Integration

Galooli is committed to aligning its climate risk management and financial planning processes with the Task Force on Climate-related Financial Disclosures (TCFD) guidelines. This includes:

• Governance: Ensuring that climate-related risks are integrated into corporate governance, with oversight from the CEO, Risk Committee, and Board of Directors.

• Strategy: Identifying climate-related risks and opportunities and integrating them into Galooli’s strategic objectives and operational planning.

• Risk Management: Incorporating scenario analysis to assess both physical and transition risks, ensuring that Galooli remains resilient under various climate scenarios.

• Metrics and Targets: Using TCFD-aligned metrics, such as GHG emissions reductions and energy efficiency improvements, to track progress toward key sustainability goals.

Risk Evaluation Framework

Galooli’s risk evaluation process considers several key factors, including:

• Stakeholder, legal and regulatory mapping: a comprehensive understanding of the external environment. This mapping helps identify key stakeholders' expectations, legal obligations, and potential regulatory changes that may impact Galooli’s operations. By integrating these factors, Galooli ensures that its risk assessments are aligned with both internal objectives and external requirements.  

• Primary Financial Effect: The potential financial impact of the identified risk.

• Time Horizon: The expected timeframe over which the risk may materialize.

• Likelihood: The probability of the risk occurring.

• Ability to Evaluate Financial Effect: The capacity to quantify and assess the financial implications of the risk.

• Primary Response to the Risk: The immediate and strategic actions taken to address or mitigate the risk.

Current Key Risks

• Changes to the Regulatory Environment: Any regulatory exemptions that fail to encourage carbon footprint reduction pose a direct threat to Galooli. Such exemptions could undermine the value proposition of Galooli’s energy efficiency and sustainability solutions, potentially leading to decreased demand for its products and negatively impacting business growth.

• Poor Enforcement of Regulations: Inconsistent enforcement of environmental regulations may reduce customer reliance on Galooli’s Remote Management Systems (RMS). This could lead customers to feel less obligated to adopt energy-saving measures, weakening the market for Galooli's solutions and decreasing sales.

• Changing Customer Behavior: Shifts in customer preferences or environmental priorities could reduce the relevance of Galooli’s solutions. If customers prioritize other factors over sustainability, demand for Galooli’s products may decrease, impacting overall growth.

• Uncertainty in Market Signals: Unclear or conflicting signals from the market regarding sustainability trends may create challenges in strategic planning. This uncertainty can complicate product development and investment decisions, leading to potential misalignment with customer needs.

• Increased Stakeholder Concern or Negative Feedback: Growing environmental awareness may lead to heightened scrutiny from stakeholders, including investors and customers. Negative feedback on Galooli’s environmental performance or perceived shortcomings in its sustainability efforts could damage its reputation and affect stakeholder relations.

• Stigmatization of the ESaaS Sector: The Energy as a Service (ESaaS) sector may face growing stigmatization, potentially affecting the market perception of Galooli’s offerings. This negative sentiment could limit the company’s ability to attract new customers and investors, thereby impacting market expansion.

• Increased Severity of Extreme Weather Events: The rising frequency of extreme weather events, particularly heat stress, poses operational challenges. These events may disrupt service delivery, affect personnel safety, and lead to increased costs for maintaining business continuity in affected regions.

• Non-Compliance with Regulations: Non-compliance with varying environmental regulations across regions represents a significant risk for Galooli. Failure to meet legal requirements could result in fines, operational delays, loss of permits, and reputational damage, particularly in sectors such as energy management and emissions monitoring. This risk is high due to the complexity of regulations across different geographies.

By regularly assessing and addressing these risks, Galooli proactively manages both the financial and operational impacts of environmental challenges. This approach helps the company remain aligned with global sustainability goals and ensure compliance with evolving regulatory standards.

Opportunity Assessment

Galooli regularly identifies and evaluates opportunities related to environmental sustainability across its operations, supply chain, and customer base. These opportunities are assessed to ensure that the company is well-positioned to capitalize on emerging trends, enhance its market position, and drive long-term growth. The opportunity evaluation process follows a structured approach similar to risk assessment, with a focus on financial impact, likelihood, time horizon, and strategic responses.

1. Opportunity Evaluation Framework:

   • Primary Financial Impact: The potential financial benefits of seizing the opportunity.

   • Time Horizon: The expected timeframe for realizing the opportunity.

   • Likelihood: The probability of successfully capitalizing on the opportunity.

   • Primary Strategic Response: The actions taken to leverage the opportunity.

2. Current Key Opportunities:

   • Shift Toward Decentralized Energy Generation: As the energy sector shifts toward decentralized models, Galooli can position its solutions as integral to optimizing distributed energy systems. This presents significant growth potential in new markets focused on energy independence and resilience.

   • Increased Use of Renewable Energy Sources: The growing global focus on renewable energy presents an opportunity for Galooli to enhance its solutions that support renewable integration, such as solar power, which could lead to increased product demand and sustainability impact.

   • Increased Brand Value: As sustainability becomes more critical to business operations, Galooli’s strong environmental focus can enhance brand reputation. This could lead to increased recognition and trust from customers, investors, and other stakeholders.

   • Expansion Into New Markets: With increasing regulatory focus on sustainability, Galooli can expand into new geographical and industry markets that require advanced energy management and emissions monitoring solutions, driving business growth.

   • Stronger Competitive Advantage: By leveraging its advanced sustainability technologies, Galooli can create a stronger competitive advantage. Its innovative solutions enable customers to meet regulatory and sustainability goals, positioning the company as a market leader in the ESaaS sector.

   • Development of New Products or Services: The transition to a low-carbon economy offers Galooli the opportunity to develop new, innovative products and services. These solutions can help clients further reduce their carbon footprint and enhance energy efficiency.

   • Reputational Benefits Leading to Increased Demand: Galooli’s commitment to sustainability can result in significant reputational benefits, enhancing its credibility and increasing demand for its products and services among environmentally conscious customers and partners.

   • Access to New Financing Options: As global financial markets increasingly prioritize environmental sustainability, Galooli may gain access to new financing opportunities, such as green bonds and sustainability-linked loans, to fund its growth and innovation.

By actively assessing and pursuing these opportunities, Galooli ensures that its Climate Transition Plan not only mitigates risks but also captures strategic growth areas, reinforcing its commitment to sustainability and long-term business success.

Sustainability Milestones (2024-2035)

As part of Galooli’s Climate Transition Plan, we are committed to achieving measurable reductions in our carbon footprint across all aspects of our operations. The following milestones represent key projects and actions across the company’s verticals.

To ensure the integrity and transparency of our progress, Galooli intends to engage an independent third-party organization to provide comprehensive assessment and assurance of our adherence to these milestones. The following milestones represent key initiatives and actions across the company’s verticals.

Operations and Remote Management

• Goal: Optimize energy use in remote assets.

  • 2025: 50% of customers integrate Galooli’s Sustainability tools (e.g., Sustainability Dashboard, Solar Performance, Energy Management), focusing on energy monitoring and emissions reduction.

  • 2026-2027: 3% reduction in average carbon intensity for Galooli site customers, aided by remote control and automation of energy usage.

  • 2030: 100% of customers actively using Galooli’s sustainability tools.

IT and Servers

• Goal: Reduce energy consumption at the server level.

  • 2035: 5% reduction in cloud energy consumption through the implementation of AWS energy optimization tools.

  • 2035: 10% reduction in IT and server-related emissions by migrating to green energy-powered data centers.

Procurement and Supply Chain

• Goal: Sustainable procurement and supplier engagement

  •  2024: 100% of new suppliers adhere to a Supplier Code of Conduct mandating environmental standards.

  • 2025: 85% of key suppliers achieve ISO 14001 or related environmental certifications.

  • 2025: Integration of a Sustainable HW End-of-Life (EOL) process within commercial agreements.

  • 2028: 100% of suppliers meet sustainable sourcing standards, contributing to a fully green supply chain.Logistics and Fleet.

Logistics and Fleet

• Goal: Greener logistics and transportation

  • 2030: 60% of the company’s fleet vehicles will be hybrid or electric.

  • 2035: 100% of the company's fleet vehicles will be hybrid or electric, achieving zero operational fleet emissions.

Employee Engagement and Awareness

• Goal: Cultivate a sustainability-focused corporate culture.

  • 2024: 100% of employees participate in a company-wide sustainability awareness campaign, including training on reducing energy waste and promoting sustainable practices.

  • 2025: Full participation in internal sustainability initiatives, driving continuous improvement.

  • 2028: 95% of employees actively engage in sustainability-focused innovation programs, contributing to company-wide emissions reductions.

Key Sustainability Goals

As part of our Climate Transition Plan, Galooli is committed to improving resource efficiency and sustainability across the entire value chain. We actively invest in lifecycle assessments and collaborate with both suppliers and customers to minimize environmental impact and promote sustainability at every level. To ensure we drive meaningful, measurable progress, we have set the following ambitious goals:

• 50% of customers integrate Galooli Sustainability Tools by 2025.

• 85% of key suppliers achieve ISO 14001 or related certifications by 2025.

• 60% of the company’s fleet vehicles are hybrid or electric by 2030.

• -50% reduction in GHG emissions by 2030.

• -5% reduction in generator engine hours by 2026.

• -3% reduction in average carbon intensity for Galooli site customers by 2026.

• 100% Net Zero achievement by 2050.

• +10% increase in customers leveraging renewable energy solutions by 2030.

Galooli seeks to enhance its ability to evaluate the business impact and financial planning related to specific environmental risks, ensuring resilience and preparedness across the organization.

Galooli’s Innovative Sustainability Products

Galooli is a pioneer in sustainability-focused technology. Our Sustainability Dashboard, integrated into our Remote Management System (RMS), provides real-time insights into energy usage, emissions, and operational efficiencies. By utilizing the Sustainability Dashboard, companies can monitor their carbon footprint, control emissions, and reduce energy waste—especially fossil fuel consumption. Additionally, Galooli’s patented solutions help optimize the use of renewable energy sources, such as solar power, increasing their contribution to overall energy consumption.

Contact Us

We are committed to transparency and open communication about our Climate Transition Plan and sustainability efforts. If you have any questions, need further clarifications, or would like to engage with us on these topics, please visit https://galooli.com/corporate-social-responsibility/ and feel free to reach out to us at Galooli-Partnerships@galooli.com. We welcome the opportunity to discuss our journey towards a sustainable future and how we can collaborate to make a positive environmental impact.