Climate Change Data

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Reduction in revenues due to economic downturn leading to reduced average prices and difficulty in increasing prices even if conditions improve.
• Working capital cycle exacerbates cash position: Reduction in revenues without immediate cost base decline may lead to significant working capital requirements.
• Exposure to foreign exchange, interest rate, economic, and political risks in 52 countries of operation.
• Potential for significant costs related to refurbishment of centers or reinstatement of properties.
• Difficulty in assessing business due to the developing and rapidly evolving serviced office market with few comparable public companies.
• Systemic risk from guarantees given by Regus Limited and Regus Business Centre B.V.
• Dependence on Chief Executive Officer Mark Dixon.

Mitigation Strategies

• Renegotiation of 117 leases, closure of 39 business centers and 36 floors, reducing workstations from 60,073 to 50,262.
• Significant cuts in overheads at Group and individual center levels.
• Reduced operational gearing to cyclical risks by increasing risk-sharing turnover leases, changing customer base, and focusing on long-term global outsourcing contracts.
• Improved level of contracted revenues by offering customers incentives for longer-term contracts.
• Strengthened financial position through rights issue in December 2003 and rising occupancy levels.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environmental impact of growth
• Community Investment
• Workforce Diversity

Environmental Achievements

• Minimising environmental impact through energy saving and sustainability initiatives
• Flexible working helps customers reduce their carbon emissions

Social Achievements

• Expanded support for projects of team members in their communities
• Workforce is 75% female: 25% male (2013: 70% female: 30%)
• At a Group operational level the breakdown is broadly equal
• At a senior management level 33% of positions are held by women (2013: 30%)

Governance Achievements

• Board welcomed Nina Henderson, who assumed chairmanship of the Remuneration Committee
• Ongoing efforts to focus on strategic objectives in both Board and management activities
• Review and monitor remuneration policy to ensure alignment of interests and incentives between shareholders and executives

Climate Goals & Targets

Environmental Challenges

• Adverse impact of start-up costs associated with higher investment in growth
• Strength of sterling negatively impacted translation of international earnings

Mitigation Strategies

• Achieving significantly lower average cost of investment per location
• Focus on cost control and improving efficiency and productivity
• Increased and diversified debt facilities

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Community development
• Environmental impact
• Charitable investment

Environmental Achievements

• Reduced carbon emissions by circa 30% since 2010 in UK centres through the UK Carbon Reduction Commitment (CRC) Energy Efficiency Scheme.
• Achieved a 'B' rating from the Carbon Disclosure Project (CDP), exceeding the industry average of 'C'.

Social Achievements

• Supported 252 charities through 260 projects in 46 countries, raising £302,066.
• Hurricane Relief Programme provided support to businesses and employees affected by Hurricanes Harvey, Irma, and Maria.
• Colleagues in Brazil implemented a recycling program in partnership with customers and a local orphanage.
• Colleagues in Denmark repurposed 400 pieces of old furniture and electronic appliances for donation to charities.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Weaker than expected revenue improvement in Q3 2017, resulting in a pause in the recovery of the Mature business, particularly in London.
• Several natural disasters affecting certain national markets in Q3 2017.
• Increased overhead costs and initial losses from new centres due to investment in network growth and corporate account development.

Mitigation Strategies

• Negotiated revised terms with partners to reflect downward movements in market rates.
• Focused on managing overhead costs, achieving an 18% absolute reduction at constant currency.
• Continued investment in network growth and corporate account development, despite short-term impact on profitability.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• CDP 'B' rating

Environmental Metrics

ESG Focus Areas

• Environmental sustainability
• Community investment

Environmental Achievements

• Reduced global utility cost per workstation by 19.8% in 2018 (following a 6.3% reduction in 2017), resulting in an overall reduction of 24.9% across the two years. Reduced water costs per workstation by 26.8% over the same two years.
• CRC cost reduction per centre of some 16.1% when comparing 2015/16 with 2017/18 figures.

Social Achievements

• Supported 274 charities through 335 projects in 47 countries, raising a total of £317,891.
• Partnered with Up With Women, providing space for program sessions and supporting 350 women across Canada.
• Team in India supported Make-A-Wish Foundation India through participation in the Mumbai Marathon, providing over £15,000 over five years.
• Team in UK held a charity raffle raising £7,364 for the DM Thomas Foundation for Young People.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Challenging economic conditions in several countries (e.g., Brazil, Mexico).
• Challenges in the UK business affecting financial performance.

Mitigation Strategies

• Restructured business in Brazil, repositioning estate and re-energizing colleagues.
• Taking actions to stimulate long-term profitable growth in the UK through repositioning and investment in estate and personnel.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Drawing on local supply chain networks where possible.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed