SThree plc
Climate Impact & Sustainability Data (2018-12 to 2019-11, 2023)
Reporting Period: 2018-12 to 2019-11
Environmental Metrics
Total Carbon Emissions:3814 tCO2e (market based), 3950 tCO2e (location based)
Scope 1 Emissions:2130
Scope 2 Emissions:1045/1181
Scope 3 Emissions:1454
Renewable Energy Share:Not disclosed
Total Energy Consumption:Not disclosed
Water Consumption:Not disclosed
Waste Generated:Not disclosed
Carbon Intensity:1.64 tCO2e per employee (market based), 1.75 tCO2e per employee (location based)
ESG Focus Areas
- Environmental
- Social
- Governance
Environmental Achievements
- Reduced emissions by 12% and 17% on a per employee basis
- Achieved carbon neutrality by offsetting 2018 global carbon footprint
- Set an ambitious emissions reduction target of 20% by 2024
Social Achievements
- Contributed over £210,000 to community programmes
- Engaged 4,365 people in STEM projects funded by the SThree Foundation
- Volunteered over 2,490 hours in local communities
Governance Achievements
- Early adoption and reporting against the most recent UK Corporate Governance Code
- Completed Board and Committee effectiveness review
- Development of a new Remuneration Policy
Climate Goals & Targets
Long-term Goals:
- Not disclosed
Medium-term Goals:
- Achieve an operating profit conversion ratio in the range of 21-24% by 2024
- Drive a free cash flow conversion ratio of at least 75% by 2024
Short-term Goals:
- Reduce absolute carbon emissions by 20% by 2024
- Grow Group market share by 50% by 2024
Environmental Challenges
- Macro-economic environment cyclicality
- Competitive environment and business model
- Commercial relationship and customer risk
- Contract risk
- Foreign exchange translation
- People, talent acquisition and retention
- Information technology and cyber risks
- Data protection and management
- Compliance
- Brexit
- Strategic change management
Mitigation Strategies
- Diversification across geographies, sectors, and Permanent/Contract business
- Flexible cost base
- Strong balance sheet
- Diversification into different geographies/sectors and evolving business models
- Investment in online presence
- Strong credit rating and verification procedures
- Management of contractual terms
- Regular review of IT infrastructure
- Investment in software and penetration testing
- Business continuity arrangements
- Structured induction programme and career development
- Competitive pay/benefits structures
- Policies and procedures for handling and storing data
- Strengthening training programmes, internal controls, and compliance processes
- Ongoing viability, dividend and tax assessments
- Review of strategic change management capability
- Creation of the role of Chief Strategy & Development Officer
Supply Chain Management
Supplier Audits: Not disclosed
Responsible Procurement
- Not disclosed
Climate-Related Risks & Opportunities
Physical Risks
- Not disclosed
Transition Risks
- Not disclosed
Opportunities
- Partnering with clients in the renewable energy sector
Reporting Standards
Frameworks Used: Null
Certifications: Null
Third-party Assurance: Not disclosed
UN Sustainable Development Goals
- Not disclosed
Contributed to 11 of the 17 UN Sustainable Development Goals
Sustainable Products & Innovation
- HireFirst
Awards & Recognition
- Mittelstand Deutschland Top Employer 2019
- Top 125 training magazine winner (third year running)
Reporting Period: 2023
Environmental Metrics
Total Carbon Emissions:22,068 tCO2e (market based) in FY23
Scope 1 Emissions:620 tCO2e in FY23
Scope 2 Emissions:320 tCO2e in FY23
Scope 3 Emissions:20,662 tCO2e in FY23
Renewable Energy Share:28% in FY19, target 100% by FY30
Carbon Intensity:8.94 tCO2e per FTE in FY23
ESG Focus Areas
- Climate Change
- Diversity, Equity & Inclusion (DE&I)
- Employee Engagement
- Data and Cyber Security
- Health, Safety, and Environment (HSE)
Environmental Achievements
- 142% growth in clean energy business net fees since FY19.
- 31% increase in scope 1 and 2 emissions and 12% reduction in scope 3 emissions in FY23 from FY19.
- 8% reduction in carbon emissions since FY19.
- 970 placements in clean energy roles in FY23.
- 28% YoY growth in our clean energy business in FY23.
Social Achievements
- 114,466 lives positively impacted since December 1, 2019.
- 15,292 accessed decent work through SThree placements.
- 431 accessed career support program.
- 2,754 existing and aspiring STEM professionals accessed Elevate Careers program.
- 3,094 hours of volunteering supported local communities.
- 47 women participated in Identify leadership talent development program.
- £86,000 contributed to fund 3,700 scholarships for women in Women Who Code program.
Governance Achievements
- Established an ESG Committee with representation from ExCo and key stakeholders.
- Formed a TCFD Steering Committee and a Global Renewable Energy Network (GREN).
- Implemented 12 actions to improve climate risk controls and processes.
- Refreshed Speak Up policy and launched a campaign to promote its use.
- Delivered mandatory training on anti-bribery, data protection, cyber security, health and safety, and modern slavery.
Climate Goals & Targets
Long-term Goals:
- Net zero GHG emissions across the value chain by FY50 (90% reduction in absolute scope 1, 2, and 3 GHG emissions by FY50 from a FY19 base year).
Short-term Goals:
- Double the size of our clean energy business by FY24 (from FY19 baseline).
- Reduce absolute scope 1 and 2 GHG emissions by 77% by FY30 from a FY19 base year.
- Increase annual sourcing to 100% of electricity from renewables by FY30 from 28% in FY19.
- Reduce absolute scope 3 GHG emissions by 50% by FY30 from a FY19 base year.
Environmental Challenges
- 26% increase in absolute emissions in FY23 compared to FY22 due to a return to pre-pandemic operations.
- Scope 3 emissions increased by 13% YoY in FY23.
- Maintaining market share in rapidly expanding markets.
- Addressing multiple skills requirements of clients.
- Changing candidate and client preferences regarding environmental concerns.
- Operating within high-carbon industries.
- Exposure to changing government policies impacting large projects.
- Increased carbon emissions due to rising global temperatures.
- Impact of extreme weather on operational performance.
Mitigation Strategies
- Set SBTi-verified targets for near-term and long-term net zero emissions.
- Developed an Energy Sector Position Statement to guide operations in the energy sector.
- Launched Elevate Careers program to diversify the STEM talent pipeline.
- Strengthened brand structure and marketing to improve service delivery across multiple skills.
- Improved data collection and reporting to better understand emissions profile.
- Implemented sustainable property criteria for new offices.
- Developed a transition roadmap for decarbonizing the supply chain.
- Invested £3.0 million in energy-efficient facilities and equipment.
- Implemented business continuity plans for offices at risk from extreme weather.
- Utilize climate-related scenario analysis to assess potential impacts.
Supply Chain Management
Responsible Procurement
- Engaging top 20 high emitting suppliers in carbon reduction targets.
- Implementing supply chain data management within digital transformation.
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather events
- Increased carbon emissions due to rising temperatures
Transition Risks
- Market/Fossil fuel sector exposure
- Maintaining market share in rapidly expanding markets
- Addressing the multiple skills requirements of clients
- Changing candidate and client preferences
- Operating within high-carbon industries
- Exposure to changing government policies
Opportunities
- Responding to the changing demands of the market
- Growth of clean energy generation and associated technologies
- Emergence of the ‘green recruiter’
- Alignment to low-carbon clients
Reporting Standards
Frameworks Used: SBTi, TCFD