Corporate Responsibility at Sonim

Sonim has generated its 2022 and 2023 CSR report by adhering to the GRI standards and citing this framework as the basis for the information presented.

About Sonim:

Product Lines

Sonim Technologies is a leading U.S. provider of ultra-rugged, rugged and consumer durable mobile devices including phones, wireless internet data devices, tablets, accessories, and software designed to provide extra protection for users that demand more durability in their work and everyday lives.

Sonim’s strategic partnerships with carriers spans more than a decade and includes multiple device innovations, accessory and application launches that fulfill customer needs in the rugged, durable, and wireless internet device markets.  These partnerships include and serve the enterprise, industrial, and mission-critical markets. Sonim was the first manufacturer to support specific requirements in support of a public safety dedicated network band. Today, Sonim’s addressable market extends to small and medium business and consumers.

Mission and Purpose

Sonim’s mission is to provide high-quality, dependable communication tools to customers who want more from their technology, whether they are in mission critical and extreme environments or facing the challenges of daily life.

Our commitment to delivering exceptional products and customer service ensures that nothing stands in the way of our customers’ ability to communicate with confidence and efficiency.

As manufacturers of ruggedized, mission-critical communication tools for individuals operating in extreme conditions, we are acutely aware of the distinctive role our company plays within this sector. Millions of workers entrust their primary communication to our solutions, relying on us to provide connections they can count on. In addition to serving those in demanding environments, we extend our offerings to a broader audience, seeking to redefine value and reliability in a market traditionally lacking in both. Through innovation, creativity, and a steadfast commitment to a customer-first approach, we distinguish ourselves, ensuring our users communicate with confidence and efficiency.

Responsibility

Corporate Responsibility at Sonim focuses on the environmental, health and safety impacts of our operations, in addition to the well-being of our employees, and those for whom our solutions are crafted.  We are committed to providing stakeholders with a clear understanding of our company’s governance, environmental and social policies, and initiatives that are focused on positively affecting our employees, the global environment, and our society.

Location

Sonim Technologies is headquartered in San Diego, California with additional offices in Shenzhen, China and the United Kingdom.

Locations:
Sonim Corporate Headquarters
4445 Eastgate Mall
Suite 200
San Diego, CA 92121

Sonim China
Room 1401, Haiwang Yinhe Science and Technology Building, No.1, Keji Middle 3^rd Road,
Nanshan District, Shenzhen, Guangdong China 518101

Financial summaries and annual reports are available on the Sonim Technologies Investor Relations Website.  https://ir.sonimtech.com/

Governance:

Board of Directors

• Sonim Technologies’ Board of Directors consists of five members who bring a vast amount of knowledge and experience within the telecommunications industry. Each board member functions in various roles within the Audit Committee, Compensation Committee and Corporate Governance Committee.  Our board was selected by our stockholders to provide oversight and strategic guidance to our senior management, to fulfill fiduciary duties of care and loyalty and otherwise to exercise his or her business judgment in the best interests of Sonim and its stockholders. The Board has responsibilities to review, approve and monitor fundamental financial and business strategies and major corporate actions, assess major risks facing Sonim and consider ways to address those risks and to maintain the integrity of Sonim.   For more information on the Board of Directors and Committees visit https://ir.sonimtech.com/corporate-governance/board-of-directors.

Investor Communication

• Sonim Technologies communicates regularly with its stockholders by releasing quarterly and annual financial results, in addition to publishing Section 16 filings with the SEC, as well as annual meetings of stockholders. We also communicate our major updates and accomplishments within press releases.  The financial results and press releases are available on our website for review. https://ir.sonimtech.com/

Customer Communication

We offer a 24-hour global hotline to support customer service issues.  Customers can contact us for service at 1-833-MY-SONIM 1-833-697-6646. For additional information about products and company news, customers can visit www.sonimtech.com and our pages on social media channels.

Employee Communication

• The CEO conducts quarterly All-hands Meetings with the organization. All employees are invited to join where they can raise questions to the CEO directly.  Also, the CEO sends frequent communication through e-mail to employees, regarding product news and updates on the operation status of the company. Our department leaders are also required to conduct one-on-one meetings with their direct repots at least once a year to review their performance annually, listen to their thoughts on career planning and provide feedback and goals to support the employee’s growth strategy. At Sonim, we also have an open communication policy, where every employee has a voice and the opportunity to be heard.

COVID-19:

With the global COVID-19 pandemic, protecting our employees and our customers is of utmost importance.  We implemented a work from home policy in 2020 for all employees, whenever possible, and continue to work from home today.  Having this remote and flexible work environment keeps our employees safe and offers a better work-life balance.  Also, many of our customer interactions are conducted virtually in effort to reduce our carbon footprint by minimizing commuter travel.

At each of our office locations, we have implemented strict guidelines that follow the laws and regulations specific to those countries.

Some of the key guidelines we have implemented:

• All employees to work from home whenever possible
• Encourage all meetings to be carried out virtually via Teams conferencing only
• Avoid non-essential official travel
• Discourage visitors in office complex
• Advise employees who are at higher risk like older employees, pregnant employees, employees with health issues etc. to take extra precautions
• Introduced Virtual Onboarding & Employee Orientation process, virtual exit management process, virtual team building activities, virtual trainings, etc.
• Installation of hand sanitizer in all prominent locations/floors. Mandatory use of hand sanitizers at the entry.
• Self-declaration of health condition before entering office premises
• Follow social distancing norms within office
• Proper cleaning and frequent sanitization of workplace and frequently touched surfaces
• Guidelines on employee safety published which included employee with any symptoms to avoid coming to office
• Self-monitoring by employees and inform employers if feeling unwell

Environmental:

Future Goals

Sonim has developed goals and objectives to help impact the environment in a positive manner for our future.  Over the next four years we will strive for the following:

• Increase the percentage of environmental protection recycled materials which are used in Sonim products by 10% by the year 2026, from product development to manufacturing, package, and transportation processes
  • The emphasis on choosing premium and environmentally sustainable materials is a crucial step towards safeguarding our planet and fostering a circular economy. Sonim is committed to integrating recycled materials into our product development and manufacturing workflows. Our goal is to boost the use of eco-friendly recycled materials in Sonim products by 10% by the year 2026. We are dedicated to actively seeking opportunities to incorporate high-quality recycled materials. Our rugged devices comply with environmental standards such as ROHS, REACH, WEEE, and CP65, among others.
  • REACH SVCH Disclosure
  • Declaration of Post Consumer and Bio-based Plastics

• Reduce 20% of carbon emissions by 2026
• Reduce 20% of energy consumption by 2026
• Aim to increase the global recycling rate of end-of-life (EOL) products to 20% by 2026

Environmental Responsibility

We recognize that environmental responsibility and transparency are integral to producing world-class products. That’s why our suppliers must obtain all required environmental permits for their operations. At Sonim, we annually disclose our environmental performance data through the CDP report and EcoVadis Scorecard. The CDP report is available here and the EcoVadis Scorecard is available here.

• We promote a range of practices in the workplace aimed at conserving energy and reducing carbon emissions.
• Our rugged device products meet energy efficient compliance with Certifications including  Natural Resources Canada (NRCan), The Council of Commission for Environmental Cooperation (CEC) and the U.S. Department of Energy (DOE).
• Our waste management process is 100% compliant with regulatory requirements
• We have established the IS014001 Environmental Management System to manage wastewater and waste and select qualified professional companies to dispose of hazardous waste so as to minimize environmental impact. The Environmental Management System (ISO14001:2015) Certificate is available here.
• Sonim maintains records and statistics to ensure adherence to energy-saving goals:

• We are continually refining our packaging design to reduce the use of disposable, single-use packaging. Since 2019, we’ve instituted a material packaging recycling program between Sonim and our supply chain, significantly cutting down on packaging material use and lessening out environmental impact.
• To foster a culture of environmental responsibility, we host forums, training sessions, campaigns, and outdoor activities focused on environmental awareness. These initiatives encourage everyone to integrate environmental protection into their everyday lives and work.
• Our critical suppliers are fully compliant with Environmental Management Requirements, ensuring that our supply chain operates sustainably.
• We ensure that 100% of the conflict minerals used in our products are legally sourced. All suppliers are required to hold an Environmental Management System (ISO14001:2015) certificate. We include Environmental Management System audits in our annual supplier evaluations as part of mandatory criterion.
• Sonim implemented a Supplier Management Procedure and developed a balance score card to evaluate supplier performance across six key areas: Quality, Supply, Cost, Flexibility, Technology and Service. Through regular supplier audits, we support our suppliers’ ongoing improvement.
• In alignment with the SEC Conflict Minerals Rule under section 1502 of the Dodd-Frank Act, Sonim has introduced a Conflict Mineral Policy. This policy is aimed at ensuring the responsible procurement of raw materials like tin, tantalum, tungsten, gold, and cobalt, verifying that these minerals are sourced from qualified smelters.

Quality Management

Please see our quality management certificates and IECEx Quality assessment report below:

• Quality Management System Certificate (ISO9001:2015) is available here.
• IECEx Quality Assessment Report (ISO/IEC 80079-34) is available here.

Recycle Program

Sonim offers a recycling program for all of our customers where they can recycle their Sonim mobile devices at no charge. Click here to learn more.

We are committed to enhancing public awareness about environmental conservation and collaboratively working towards its protection. Sonim actively highlights the eco-friendly aspects of our rugged mobile devices to our target audience. Our devices are engineered for longevity, with a lifespan of 3-5 years or more, feature replaceable batteries to avoid full device replacement when the battery expires, and utilize standard connectors. This ensures compatibility and reusability of accessories across both our products and those from third parties. Such design considerations offer our customers a lower total cost of ownership and minimize waste from their mobile device investments.

Human Rights:

Anti-Discrimination/Anti-Harassment

Sonim Technologies, Inc. believes in respecting the dignity of every employee and expects every employee to show respect for all our colleagues, customers, and vendors.  Respectful, professional conduct furthers the company’s mission, promotes productivity, minimizes disputes, and enhances our reputation.  Accordingly, this policy prohibits any discrimination or harassment that is based on an individual’s protected status.

“Protected status” means race, color, religion, sex, gender identity, sexual orientation, pregnancy, age, national origin, physical or mental disability, military or veteran status, genetic information, or any other protected classification of an individual, or that individual’s associates or relatives.

The Company will not tolerate any form of discrimination or harassment that violates our company policy.

Employee Responsibility

Everyone at Sonim Technologies can help assure that our workplace is free from prohibited discrimination or harassment. Everyone is expected to avoid any behavior or conduct that could reasonably be interpreted as prohibited discrimination or harassment; no employees, not even the highest-ranking people in the Company, are exempt from the requirements of this company policy. Every employee is strongly encouraged to inform any person in the workplace whose conduct the employee finds unwelcome.  Any manager or supervisor who is aware of conduct inconsistent with our policy or who receives a report of conduct inconsistent with our policy is to report immediately to the Human Resources Manager or direct manager.  Nonetheless, every employee who reports harassment under our policy should make every effort to make that report directly to the Human Resources Department.

Suppliers

Additionally, our suppliers must adhere to recognized standards such as the Universal Declaration of Human Rights (UDHR), Social Accountability International (SAI) and the Ethical Trading Initiative (ETI).  Materials incorporated into our products are procured in accordance with all applicable laws in the countries they do business in, including paying strict attention to laws regarding laws on slavery and human trafficking.

We are aware of the challenges associated with overseeing a global supply chain and our global staff actively manages and oversees our suppliers and vendors to ensure that our corporate responsibility standards are upheld.  That’s why we clearly outline our business ethics to all our work family and hold each member accountable for complying with our policies against child labor, human trafficking, slavery, inhumane treatment, and discrimination. Click here to view our Code of Conduct.

Code of Business Conduct and Ethics

Integrity is fundamental to Sonim. We are committed to maintaining the highest standards of business conduct and ethics. We expect every employee, officer, and director of Sonim to read and understand the Code and its application to the performance of his or her business responsibilities.

The Code addresses conduct that is particularly important to proper dealings with the people and entities with whom we interact, including but not limited within, “Business & Financial Records”, “Gifts, Meals, Travel & Entertainment”, “Confidentiality”, “Protection & Proper Use of Company Assets”, “Accurate Financial and Accounting Disclosures”, “Media/Public Discussions”, “Fair Dealing” and “Compliance of Laws”. The Code cannot and is not intended to cover every applicable law or provide answers to all questions that may arise. From time to time, we may adopt additional policies and procedures with which our employees are expected to comply, if applicable to them. However, it is the responsibility of each employee to apply common sense, together with his or her own highest personal ethical standards, in making business decisions where there is no stated guideline in the Code. Nothing in the Code alters the at-will employment policy of the Company. We all must follow the law, act with integrity and honesty in all matters, and be accountable for our actions. We have high ethical standards for ourselves and our vendors. Lying, either overtly or through holding back information, is not something Sonim teams do.

Any employee who violates the standards in the Code may be subject to disciplinary action, which, depending on the nature of the violation and the history of the employee, may range from a warning or reprimand to and including termination of employment and, in appropriate cases, civil legal action or referral for regulatory or criminal prosecution. Sonim has operations and interests in many countries around the world. If the Code conflicts with applicable local law, the local law will prevail.

Equal Employment Opportunity Employer

The Company provides equal employment opportunities to all qualified individuals without regard to race, color, religion, sex, gender identity, sexual orientation, pregnancy, age, national origin, physical or mental disability, military or veteran status, genetic information, or any other protected classification. Equal employment opportunity includes, but is not limited to, hiring, training, promotion, demotion, transfer, leaves of absence, and termination. The Company takes allegations of discrimination, harassment, and retaliation seriously, and will promptly investigate when such behavior is reported.

Labor Practices:

At Sonim, we invest in our employees – both domestically and abroad.  We provide living wages for our employees in China, while offering clean, affordable, and accessible housing that we run and maintain.  We provide office space, which is well maintained, and a safe environment for our employees to work.  We also provide safety and ethics training so that our family abroad remains safe while helping to maintain smooth operation of our foreign plants.  See OHS certificate (ISO45001:2018) of registration for occupational health and safety available here.

When we designed and launched our first ruggedized handsets in 2011, our industry counterparts had decades of experience to rely on when refining best practices and lessons learned in ethical operations.  To the extent possible, we strive to work with our colleagues to develop standard operating procedures and leverage best practices to improve the safety of our workplace and increase our supply chain efficiencies.

Benefits

We have a diversified and flexible benefit program. We review the renumeration against industry level, to ensure that our pay is attractive to the people we desire to hire.

In China, in addition to the mandatory labor insurance stipulated by local laws, we offer our employees supplemental commercial life and safety insurance. Furthermore, we provide annual health checkups and physicals to help them better manage and monitor their health.

Sonim is committed to fostering a supportive work environment through our flexible work hours policy. Recognizing the diverse needs of our employees, we empower them to customize their start and end times, ensuring they can effectively manage their professional responsibilities alongside personal commitments. This approach not only promotes a healthier work-life balance but also enhances job satisfaction and productivity. Additionally, Sonim offers a range of welfare leave days each year, which increases with the length of service, supplementing what is mandated by local legislation.

In the United States, we offer a variety of employee benefits, including 401K and full medical dental and vision benefits.  Additionally, our employees receive short-term & long-term disability coverage, life insurance and AD&D, healthcare and dependent care, flexible spending accounts or health savings accounts. We also offer a flexible time off policy and paid sick leave for all US-based employees.

Our company has a rich history of giving back to our community.  Our employees have a flexible time off policy, and we always encourage employees to use some of their time off to volunteer for local charities, food pantries and help those in need.

Training

Our company emphasizes the value of people, and we do believe the improvement of their ability is the cornerstone of a company’s success.

For newcomers, we designed an on-boarding training. During this training, we introduce them the culture and core value of our company and do what we can to help them fit in our community as soon as possible.

Regarding other trainings, we collect training requests from each department every year and make training plans according to their feedback. The training topics vary from “Professional Skills”, such as, “Qualcomm 5G platform and technology trend”, to “Soft-Skills”, such as “Management Team Leadership Training”. In China, we also provide “English Courses” for those who wants to improve their English.

Diversity, Equity and Inclusion

Sonim Technologies is committed to fostering, cultivating, and preserving a culture of diversity, equity and inclusion.

The diversity of our workforce is essential, and we are committed to diversity and inclusion throughout our company to ensure a wide range of experiences, perspectives, and skills to provide better solutions, drive innovation and creativity, and enhance decision making.

We embrace a diverse workforce and recognize and respect qualities including gender identities, age, race, ethnicity, national origin, culture, religious or political beliefs, language, education, socioeconomic background, family or relationship status, sexual orientation, genetics, and/or disability. We also value diversity of perspective including differences in personality, life and work experience, skills, and ways of thinking and working.

Diversity is a mission imperative, and we are focusing on creating a culture of inclusion that values each individual and promotes collaboration and fairness. Sonim undertakes various diversity and inclusion efforts throughout our operations. Our diversity plan includes the following objectives:

Recruitment/Employment Opportunity: Sonim’s commitment to diversity and inclusion includes recruiting and retaining employees from diverse backgrounds and experiences, creating awareness of diversity issues and benefits, and fostering a supportive environment where inclusivity is expected and prioritized.

Safe work environment: We provide training to all employees to improve their understanding of behaviors that can be perceived as discriminatory, exclusionary, and/or harassing and provide safe avenues for employees to report such behaviors. We implement best practices and comply with local regulatory requirements.

Culture: Sonim strives to create a culture that encourages collaboration, flexibility, and fairness to enable individuals to contribute to their full potential, feel valued, and supported.

Learning and development opportunities: To support our employees in reaching their full potential, we offer a range of internal and external learning and development opportunities.

Our goal is to make diversity and inclusion one of our strategic priorities, through continued leadership commitment, accountability, and total workforce engagement.

All employees of Sonim have a responsibility to always treat others with dignity and respect. All employees are expected to exhibit conduct that reflects inclusion during work, at work functions on or off the work site, and at all other company-sponsored and participative events.

Society:

Community Involvement

University Students’ Company Tour:

We care about the growth and education of young talents. In past years, we provided opportunities to university students, including students from Depaul University and Montclair State University, to come and visit our company allowing them the opportunity to take a close look at how a multinational company runs its business.

Volunteering Work During Covid-19:

The Covid-19 pandemic has deeply influenced our daily work since 2020. During the Covid-19 pandemic, we supported the government’s epidemic prevention policies, tried our best to protect safety and health of our employees by providing them more flexible choices on working from home or going to the office. Meanwhile, we encouraged our staff to be engaged in volunteering work in their community.

Talent Cultivation

Activity

We consistently advocate the culture of work-life balance. Since our employees’ welfare is at the core of our concerns and we believe what people feel about the company can hugely affect his/her dedication to the work. In order to cultivate a more active, nurturing corporate culture, we plan abundant activities all year which we believe increases trust amongst people and ensures an open and active atmosphere.

Corruption

Our company has implemented an Anti-Corruption Policy (this “Policy”) for the purpose of ensuring compliance with the U.S. Foreign Corrupt Practices Act of 1977, as amended (the “FCPA”), the U.S. Travel Act, the U.S. Domestic Bribery Statute and all other anti-corruption laws and regulations applicable to the Sonim’s business anywhere in the world.

This Policy applies to all world-wide directors, officers, employees, and individuals serving as independent contractors of Sonim or its subsidiaries. In addition, we expect our agents, consultants, representatives, lobbyists, suppliers/vendors, resellers, distributors, customs or other brokers, contractors, advisors, and other business partners to comply with the principles contained in this Policy. This policy contains the aspects of “Anti-bribery Prohibitions”, “Accounting Requirements”, “Facilitating, Expediting or Speed Payments”, “Intermediaries/Business Partners/Associated Persons”, “Gifts & Hospitalities” and other corruption activities.

Trainings and Materials

We require all designated personnel to undergo anti-corruption training. The nature, content, and frequency of that training will be determined by Sonim based on specific risk profile. We encourage all our business partners to provide training to their personnel as well.

Violations and Consequences

A violation of this Policy will result in appropriate disciplinary action, including demotion, reassignment, additional training, probation, suspension, or even termination. The FCPA is a criminal statute. Both Sonim and the person who violates the law may be subject to substantial fines and penalties for violating these and other anti-corruption laws. In serious cases, people who violated the policy may face imprisonment for up to five years for each FCPA anti-bribery violation and up to 20 years for each FCPA accounting violation. In addition, Sonim may face suspension or debarment from government contracts, the loss of U.S. export privileges, and certain other consequences. These results can be devastating to our business. Anti-corruption enforcement has significantly increased in the United States. In addition, several other countries have strengthened their laws on this matter. This means that we can face liability across multiple jurisdictions for the same corrupt act if the laws were violated.

Product Responsibility:

Sonim mobile phones comply with the Twenty-First Century Communications and Video Accessibility Act (CVAA) which ensures that our equipment is designed, developed, and fabricated to be accessible to and usable by individuals with disabilities and compatible with existing peripheral devices or specialized customer premises equipment commonly used by individuals with disabilities to achieve access.  We submit a Voluntary Product Accessibility Template (VPAT) to document product compliance to Section 508 of the U.S. Rehabilitation Act of 1973 and facilitate government market research on information and communications technology products or services with accessible features.

Each year we submit our new devices to the Global Accessibility Reporting Initiative (GARI) which provides a comprehensive, searchable database on more than 110 accessible features to assist consumers and governments in identifying features to look for in a device especially for people with a unique need related to vision, hearing, speech, dexterity, or cognition.  Having our phone listed in GARI will help consumers find a device with accessibility features that work best for them.

Sonim keeps investing on improving user experience and providing the world class rugged devices. The product concept is particularized with the consideration of how, where and when our product is used from both hardware perspective and software perspective. Especially when we do material and components selection, device performance and environmental impact are both important factors that we cannot sacrifice.

With respect to United Nations Sustainable Development Goals (SDGs), Sonim has developed Sustainability Goals. The goals are based on: Green Product, Supply Chain Management, Sustainable Operation and Social Involvement. They aim to incorporate environmental, social and governance issues into operational decision-making and management processes, and they specifically reflect the influence of Sonim decision making process.

Sonim, as a multinational company known for durable, rugged, and ultra-rugged phones and wireless internet devices, is actively participating in activities for material sustainability. We also advocate effort and technology improvement with our vendors to maintain the environment from further impact. We are closely following up with new technologies and new materials that could benefit sustainability.

Sonim emphasizes environmental quality, our products are built by following regulatory standard. Sonim requires and supervises ODMs and vendors to achieve the level of circular economy as much as possible. We ensure the safe usage of our products by presenting the important information clearly and friendly.

We also indicate users on labels for how to dispose of our products. By following these instructions, the disposal will not cause a negative impact to the environment.

Using environmentally friendly materials is our goal as well. It is the first thing that we consider when we start to design a new product. Sonim is committed to reduction of packaging volume. Packaging materials carry the purpose of protection during transportation and marketing. Compared to the products, however, most of the packaging materials were discarded by consumers after purchase and caused resource wastage.

Therefore, under the premise of maintaining safe transportation, we reduced the waste of the internal space of the packaging and the packaging volume to decrease the use of materials. We also considered the way of stacking. It not only could improve transportation efficiency, but also could prevent damage caused by transporting products of different sizes.

In addition to contributing to the environment and to society through innovation, Sonim requires suppliers meet the requirements in labor rights, occupational hazards prevention, and environmental protection. In 2023, we onsite audit suppliers with manufacture quality as well as safety and environment.

Conclusion:

Sonim Technologies is committed to continue to strive to create a safe, healthy, and sustainable world for our employees, partners, and community.