Climate Change Data

HomeServe plc

Climate Impact & Sustainability Data (2021, 2022)

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:15,272 tCO2e/year (location-based)
Scope 1 Emissions:87% of Scope 1 and 2 emissions
Scope 2 Emissions:13% of Scope 1 and 2 emissions
Total Energy Consumption:64,616,337 kWh/year

ESG Focus Areas

  • Delivering for our customers
  • Building the workforce of the future, treating our people responsibly and embracing diversity
  • Using our skills to support the communities we touch
  • Participating in the transition to a lower carbon future

Environmental Achievements

  • Committed to a carbon reduction pathway of 1.5 degrees by 2030 in respect of our Scope 1 & 2 emissions, a 42% reduction from our 2020 baseline.

Social Achievements

  • Maintained employment levels throughout the COVID-19 pandemic, offering discounts to tradespeople and enabling remote work for office staff.
  • Launched the HomeServe Foundation in the UK to support apprenticeships and community initiatives.
  • Employee engagement exceeded pre-pandemic levels.

Governance Achievements

  • Created a Corporate Responsibility Committee in January 2021.
  • Refreshed people-related policy suite and Code of Business Conduct.
  • Improved mean Gender Pay Gap.

Climate Goals & Targets

Long-term Goals:
  • Achieve a 1.5°C carbon reduction pathway by 2030 (Scope 1 and 2 emissions).
Medium-term Goals:
  • North America: Achieve $230m adjusted operating profit; 6-7m customers; $30-45m HVAC profit; 24-26% margin.
  • Checkatrade: 150,000-200,000 trades; £1,200-£1,300 average revenue per trade; 25-35% margin; £45-£90m adjusted operating profit.

Environmental Challenges

  • Supply chain disruptions due to the COVID-19 pandemic.
  • Full impairment of the UK's eServe CRM system.
  • Customer decline in the UK Membership business.
  • Impact of the COVID-19 pandemic on Home Experts businesses.
  • Competition from other companies in the home services space.
Mitigation Strategies
  • Implemented remote work capabilities and provided support to employees.
  • Developed alternative sourcing strategies and implemented a new cloud-based CRM solution.
  • Developed plans to reverse customer decline through digitization, improved marketing, and new partnerships.
  • Supported tradespeople with discounts during lockdowns.
  • Developed a winning Home Experts model (Directory Extra) and invested in technology to improve efficiency and customer experience.

Supply Chain Management

Responsible Procurement
  • Vetting process for contractors, ensuring licensing, insurance, and background checks.

Climate-Related Risks & Opportunities

Opportunities
  • Development of energy-efficient products and services (e.g., electric vehicle charging point maintenance).

Sustainable Products & Innovation

  • Electric vehicle charging point maintenance

Awards & Recognition

  • Élu Service Client de l’année (France)
  • Gold Trophy at the CX Awards (France)

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:21,426 tCO2e/year (Scope 1&2)
Scope 1 Emissions:19,725 tCO2e/year
Scope 2 Emissions:1,701 tCO2e/year (location-based)
Scope 3 Emissions:1,010,144 tCO2e/year
Total Energy Consumption:87,320,969 kWh/year

ESG Focus Areas

  • Climate change
  • Diversity & Inclusion
  • Employee well-being
  • Community Investment
  • Supply chain responsibility

Environmental Achievements

  • Launched HVAC as a Service in New York State
  • 60% of HVAC installations in France were low-carbon equipment
  • HomeServe’s installation and maintenance proposition for domestic electric vehicle charging is now available to 9m households
  • Set Scope 1, 2, and 3 GHG emission reduction targets

Social Achievements

  • UK business won ‘Best Vulnerable Customer Initiative’ at the Modern Insurance Magazine, Customer Service Excellence Awards 2022
  • HomeServe France won three customer service awards
  • HomeServe Spain won the ‘Best Customer Service” award from Mystery Shopper
  • Continued campaign to promote trades apprenticeships through the HomeServe Foundation
  • Employee engagement remained above its pre-Covid-19 level, at 75%

Governance Achievements

  • Introduced a new Risk & Compliance portal
  • Expanded the remit of the Board’s People Committee to cover ESG matters; the Committee will become the ESG & People Committee in FY23
  • Increased the level of female representation on the Board from 22.2% to 27.3%

Climate Goals & Targets

Long-term Goals:
  • Net Zero emissions
Medium-term Goals:
  • All offices procuring renewable electricity by 2030
  • Fully transition UK fleet to electric vehicles by 2030
Short-term Goals:
  • Reduce Scope 1 & 2 emissions
  • Convert around 50% of residential heating sales to heat pumps by 2030
  • Checkatrade profitability in FY23

Environmental Challenges

  • Covid-19 pandemic impact
  • Geo-political and economic events (inflation, cost of living rises, fuel crisis, skills and materials shortages)
  • Supply chain disruptions
  • Competition
  • Climate change related risks (severe weather, capability and capacity gap for the installation of heating alternatives, climate regulation)
  • Data privacy
  • Information security & cyber resilience
  • Partner loss
  • Technology investment
  • Failure to deliver strategic growth
  • Labour market challenges (recruitment and retention)
  • HVAC integration
Mitigation Strategies
  • Hybrid working arrangements
  • Business model resilience
  • Active M&A strategy
  • Disciplined capital allocation
  • Strong customer service
  • Innovation (HVAC as a Service, EV charging solutions)
  • Detailed information security policy and regular penetration testing
  • Data protection framework and centralized Group function
  • Portfolio of partners
  • Strict investment criteria
  • Flywheel model for strategic decision-making
  • Competitive employment policies
  • Integration plans for acquisitions
  • Business continuity plans

Supply Chain Management

Responsible Procurement
  • Due diligence on suppliers’ approach to sustainable and ethical procurement

Climate-Related Risks & Opportunities

Physical Risks
  • Severe weather
Transition Risks
  • Climate regulation
  • Capability and capacity gap for the installation of heating alternatives
Opportunities
  • Installation of heating alternatives
  • New products and services
  • Weather related increases in demand for products and services

Reporting Standards

Frameworks Used: TCFD

Certifications: ISO 14064-3

Third-party Assurance: The Carbon Trust

Sustainable Products & Innovation

  • HVAC as a Service
  • Domestic electric vehicle charging solutions

Awards & Recognition

  • Best Vulnerable Customer Initiative (UK)
  • Three customer service awards (France)
  • Best Customer Service (Spain)