WEDOS ESG report

Introductory statement

WEDOS Internet, a.s. is the market leader in web hosting and server services. Since the beginning of our operations, we have emphasized environmentally friendly operations, social responsibility, fairness towards employees and transparent company management. We believe that sustainable growth can only be achieved in accordance with the principles of sustainability and ethics. We see ESG (Environmental, Social, Governance) aspects as a natural part of our business and will continue to strengthen and develop them.

Material theme and key risks and opportunities

As a datacenter operator, we are faced with high energy consumption and the need for efficient cooling. This poses the risk of a growing carbon footprint if environmentally friendly and innovative technologies are not implemented. On the other hand, we also see an opportunity - with unique oil cooling technologies, freecooling and waste heat recovery, we can significantly reduce energy consumption and environmental impact. Socially, diversity, a safe and inclusive working environment and fair conditions for employees are key for us. In terms of governance, we focus on transparency and ethics, compliance with legislation and strengthening shareholder and public trust.

Environmental aspects (E)

Energy consumption and renewables

• In 2023, we consumed 1,790 MWh of electricity, with 100% of this covered by renewable energy.
• However, from 2024 onwards, we do not have a detailed report from the supplier, which may affect the ability to report an accurate share of renewables.

Number of servers and capacity growth

• Originally we had 1900 servers, last year we added over 1000 servers and currently we are running over 4000 servers.
• We plan to add about 1000 more servers next year, which we already have in stock. This growth means higher absolute power consumption, but also greater potential for more efficient use of green cooling technologies and a reduction in the relative carbon footprint per unit of computing capacity.

Cooling technology and energy savings

1. DC1 ("Bunker") and freecooling: Freecooling in DC1 saves us approximately 1300 MWh per year compared to conventional cooling methods. We use the residual heat to heat the building, the excess warm air replaces conventional heating. The PUE of DC1 is around 1.17.
2. DC2 ("Undercroft") and oil cooling: DC2 uses the globally unique oil cooling of all servers. At the current stage, when relatively few servers are installed in DC2, the savings are about 35 MWh per year. When DC2 is fully occupied, we expect to save over 1050 GWh per year compared to traditional cooling.

The current DC2 PUE is 1.03, but with the server fans turned off, values around 0.75 can be effectively achieved.

• Oil cooling is more than 43% more economical than air cooling. In addition, we use mineral oil, which is not harmful to the environment.
• Thanks to the oil cooling in DC2, the waste heat is used for heating the domestic water, heating the building, the car park and the municipal swimming pool. This contributes to further savings - together we save around 107 MWh of electricity for heating each year, and we plan to supply the swimming pool with over 77 MWh of energy in 2025 and to increase this amount by tens of percent per year in the following years.

Noise and air conditioning optimisation

• In 2023, we optimised the air conditioning system in DC1.
• We have reduced the noise level at neighbouring residential buildings by 5 decibels and plan to reduce it by a further 2 decibels in 2025. This will minimise the impact on the surrounding environment and improve the quality of life for residents in the neighbourhood.

Waste management and biodiversity protection

• We produce less than 1 tonne of mixed waste per year and less than 5 tonnes of recycled waste per year.
• We support recycling in datacentres - bins are available for sorting paper, plastic and e-waste.
• We comply with all legal environmental regulations. We monitor all operational impacts to minimize our environmental footprint.

Social responsibility (S)

Working conditions, diversity and inclusion

• WEDOS has more than 60 employees.
• 25% of our staff are women, and in 2024 we hired several part-time workers after maternity leave. This model has worked well and we are considering expanding it further.
• We opened a new branch in 2024, which has caused some animosity between our 3 branches. We are aware of this and are working to improve relationships and inter-company communication.

Occupational safety, training and employee development

• We pay attention to occupational health and safety, all employees are properly trained.
• We adhere to ISO standards and have implemented a fire watch.
• We support training, we enable participation in external training courses.
• Regular in-house English courses with a native speaker and professional training in the areas of IT, business and marketing increase the qualifications and motivation of employees.

Social impact (CSR activities)

• Annually, we donate over CZK 1 million to charitable and non-profit projects such as Bazalka, Arpida and the Society for Early Care.
• We support sport at local, national and international level (HC Motor České Budějovice, SK Dynamo České Budějovice, FC Zbrojovka Brno, local WEDOS league, Pelimatkat Cup 2024, sports complex in Hluboká nad Vltavou).
• Support of cultural and social activities (long-term partnership with the Hluboká Zoo, charity event of the Americas in Tábor, sponsorship of proms).
• WEDOS community: we run a community forum Help, Knowledge base with tutorials, we organize excursions for schools and interested parties, professional practice for students, WEDOS Tour (meeting with customers), IťákoBraní (recruitment conference), Open Day.
• Customer satisfaction scores a long-term rating of 4.6 out of 5 on Google.

Corporate Governance (G)

Structure, transparency and ethics

• Several years ago, we switched to a project-oriented organizational structure that clearly defines roles and increases efficiency.
• Automating services from the start allows you to focus on developing and improving your offering.
• We adhere to ethical principles, equal opportunities and zero tolerance for discrimination.
• We protect our customers' data in accordance with GDPR, ISO standards (ISO 27001, 27017, 27018) and offer WEDOS Global Protection cyber protection.

Legal compliance and anti-corruption measures

• We fully respect legal requirements in the field of environment, data protection, labour legislation and other standards.
• We value transparency and fair dealing with customers, suppliers and partners.

Relations with shareholders

• We hold regular general meetings and shareholders are informed of key decisions and financial results.
• In 2024, a dividend similar to 2021 was paid (then CZK 43.47 per share, CZK 36.94 after tax), which corresponds to approximately 36% of the annual net income relative to the share purchase price.
• Shareholders are entitled to a 20% discount on renewal of hosting services.
• In 2025, we plan to introduce an employee share plan (30% of shares) to strengthen the loyalty of current and future employees.

Our plans for the future

Certification and future plans

• We hold ISO 9001, 14001, 27001, 27017, 27018.
• In 2025, we plan to expand the certification to include DORA.

Goals and strategies for the future

• Increase the share of renewables to 100% by 2025 and keep energy intensity as low as possible even as the number of servers grows.
• Fully occupy DC2 and achieve savings of over 1050 GWh per year thanks to oil cooling.
• Add about 1,000 more servers to ensure efficient cooling and minimize environmental impact.
• Establish an employee stock plan, improve relations between branches and promote diversity.
• Maintain and expand charitable and sponsorship activities, support sports, culture and education.
• Further reduction of noise from refrigeration equipment - by 2 dB in 2025.

Impact assessment

With freecooling and oil cooling technologies, we reduce the relative carbon footprint per unit of computing capacity. While absolute consumption is increasing, we are significantly more efficient in terms of power. Social activities enhance the company's reputation, contribute to employee and customer satisfaction and contribute to the development of the region. Transparent management, adherence to ethical principles and communication with shareholders strengthen our position as a trusted partner in the long term.

Conclusion

WEDOS continues to deliver on its commitment to ESG and sustainability. Innovative green technologies, efficient resource management, support for employees, communities, sports and culture, while adhering to ethical and legal standards, all point towards sustainable growth and stability. We look forward to making our future ESG strides even better for our company, our customers, our neighborhoods and society as a whole.