Climate Change Data

Environmental Metrics

ESG Focus Areas

• Renewable Energy

Environmental Achievements

• Developed a highly efficient micro combined heat and power (mCHP) boiler designed to produce hot water and electricity, with surplus electricity fed back into the National Grid.
• Installed a demonstration facility in Sheffield to showcase the mCHP boiler and provide training.

Social Achievements

• Entered into a testing and field trial agreement with Utilitywise Plc to test the mCHP boiler in various UK locations.
• Agreed to install the mCHP boiler at a Calor Gas Limited customer site.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Early-stage product development carries high risk and uncertainty.
• Further funding is required to commercialize the mCHP boiler.
• Uncertainty over demand for the product and funding availability.

Mitigation Strategies

• Raised £1,000,000 to fund the commercialization phase.
• Secured a standby loan agreement with John Gunn and David Lenigas for up to £600,000.
• Developed manufacturing partnerships with Malvern Boilers Ltd and other engineering partners.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Collaborations with engineering and manufacturing partners (Adigo, GE Precision, Sentec, Enertek, Malvern).

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development and commercialization of energy-efficient products.

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• mCHP boiler

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Implemented systems to monitor and evaluate employees’ performance and to encourage well performing employees to progress further by supporting them to attend courses. Employees’ performance is monitored through a process designed to encourage open and confidential communication between the management and the employees on a regular basis.

Governance Achievements

• Established an Audit Committee and a Remuneration Committee.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic caused disruption to operations, particularly with European manufacturing partners temporarily ceasing operations to produce PPE.
• Early stage product development carries a high level of risk and uncertainty.
• Requires financing to fund operations through to revenue generation.

Mitigation Strategies

• Diversifying supplier base with multiple suppliers in different countries to mitigate the impact of potential future lockdowns.
• Refocusing strategic objectives towards Marine and Waste Heat Recovery (WHR) sectors.
• Actively looking into the application of mCHP boiler technology in the hydrogen market and automotive sector.
• Assessing funding options for development and commercialisation.
• Reducing core spend while moving projects forward and negotiating to renew expired drawdown facility.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Issues such as the impact on the community and the environment have actively been taken into consideration when selecting suppliers and materials.

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

• mCHP boiler, Stirling engine technology for marine, waste heat recovery, and automotive sectors

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Employee engagement
• Supplier and customer relations
• Shareholder and investor communication

Social Achievements

• Implemented employee policies and programs to encourage employee engagement and reward employees based on contribution and capability.

Governance Achievements

• Established an Audit Committee and a Remuneration Committee.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to COVID-19 and the situation in Ukraine.
• Early-stage product development with high risk and uncertainty.
• Requirement for continued investment in research and development.
• Liquidity risk due to reliance on future funding for operations.

Mitigation Strategies

• Maintained communication with a diversified supplier base across multiple countries to mitigate supply chain disruptions.
• Continuously improving the product, closely monitoring competitors, and employing skilled personnel to mitigate technology obsolescence.
• Forecast preparation, monitoring, and reducing discretionary costs to mitigate liquidity risk.
• Actively pursuing funding options for development and commercialization.

Supply Chain Management

Responsible Procurement

• Consideration of community and environmental impact when selecting suppliers and materials.

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• mCHP boiler
• Stirling engine technology for marine, waste heat recovery, hydrogen, and automotive sectors

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• The Group is aware that it needs to measure its operational carbon footprint in order to limit and control its environmental impact. However, given the very limited nature of its direct activities during the year under review, it has not been practical to measure its carbon footprint. The Group only measures the impact of its direct activities, as the full impact of the entire supply chain of its suppliers cannot be measured practically.

Social Achievements

• Employee engagement: The quality, commitment and effectiveness of the Company's current and future employees are crucial to its continued success. Employee policies and programmes are designed to encourage employees to become interested in the Company's activities and to reward employees according to their contribution and capability and the Company's financial performance. Employee communications are a priority and regular briefings are used to disseminate relevant information. Employment policies do not discriminate between employees or potential employees on the grounds of colour, race, ethnic or natural origin, sex, marital status, sexual orientation, religious beliefs or disability. If an employee were to become disabled whilst in employment and as a result was unable to perform his or her duties, every effort would be made to offer suitable alternative employment and assistance with retraining.
• Suppliers and customers: The Company maintains an ongoing dialogue with its potential customers and suppliers and the Company engages in supplier face-to-face meetings, email and telephone conversations with directors and senior management of key suppliers. When selecting suppliers and materials, issues such as the impact on the community and the environment have actively been taken into consideration. The Company pays its employees and creditors promptly and keeps its costs to a minimum to protect shareholders’ funds.

Governance Achievements

• Communications with shareholders are given a high priority. In addition to the publication of an annual report and an interim report, there is regular dialogue with shareholders and analysts. The Annual General Meeting is viewed as a forum for communicating with shareholders, particularly private investors. Shareholders may question the Executive Chairman and other members of the Board at the Annual General Meeting.
• The Board is responsible for strategy and performance, approval of major capital projects and the framework of internal controls. To enable the Board to discharge its duties, all Directors receive appropriate and timely information. All Directors have access to the advice and services of the Company Secretary, who is responsible for ensuring the Board procedures are followed and that applicable rules and regulations are complied with.

Climate Goals & Targets

Environmental Challenges

• Early stage product development carries a high level of risk and uncertainty, although the rewards can be outstanding. At this stage, there is a common risk associated with all pioneering technologically advanced companies in their requirement to continually invest in research and development.
• The Group requires financing to fund its operations through to commercialisation and the stage where it is profit generating and the Group will seek to raise such funds via placings and short term debt finance. There is the risk that the Group will not have access to sufficient funds to achieve this.
• The risk of high turnover of staff and other specialist staff recruitment issues would have an impact on operation and reputation.
• The Group’s success is dependent on its technology and management’s ability to market it successfully. There is the risk that the technology could become obsolete or a rival could develop an improved alternative.

Mitigation Strategies

• The Group has already made significant investments in addressing opportunities in the renewable energy sector.
• The Group seek to mitigate through forecast preparation, monitoring and reducing discretionary costs.
• The Board provides recognition and support for well performing existing employees and has implemented and monitors robust health and safety measures at the workplace.
• Management seek to mitigate this by constantly seeking to improve the product, closing watching its competitors and employing skilled personnel.

Supply Chain Management

Responsible Procurement

• When selecting suppliers and materials, issues such as the impact on the community and the environment have actively been taken into consideration.

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• mCHP boiler
• Stirling engine technology

Environmental Metrics

ESG Focus Areas

• Employee engagement
• Supplier and customer relations
• Shareholder and investor communication
• Environmental impact (limited reporting)

Social Achievements

• Implemented employee policies and programs to encourage employee engagement and reward employees based on contribution and capability.
• Maintained an ongoing dialogue with potential customers and suppliers, considering community and environmental impact when selecting suppliers and materials.

Governance Achievements

• Established an Audit Committee and a Remuneration Committee.
• Maintains appropriate insurance cover against legal action brought against its Directors and officers.

Climate Goals & Targets

Environmental Challenges

• High turnover of staff and specialist staff recruitment issues.
• Early-stage product development with high risk and uncertainty.
• Requirement for continual investment in research and development.
• Liquidity risk.
• Risk that technology could become obsolete or a rival could develop an improved alternative.
• Loss of key personnel (lead engineer).

Mitigation Strategies

• Recognition and support for well-performing existing employees; robust health and safety measures.
• Forecast preparation, monitoring, and reducing discretionary costs.
• Constantly seeking to improve the product, closely watching competitors, and employing skilled personnel.
• Regular review of operating and strategic risks; reporting system for financial and non-financial information to the Board.
• Preserving existing cash balances to pursue other opportunities; becoming an AIM Rule 15 cash shell.

Supply Chain Management

Responsible Procurement

• Consideration of community and environmental impact when selecting suppliers and materials.

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• mCHP boiler
• Waste Heat Recovery (WHR) applications