Climate Change Data

Portmeirion Group PLC

Climate Impact & Sustainability Data (2020, 2021, 2022, 2023)

Reporting Period: 2020

Environmental Metrics

Total Carbon Emissions:8532 tCO2e/year
Scope 1 Emissions:7000.3 tCO2e/year
Scope 2 Emissions:1448.2 tCO2e/year
Scope 3 Emissions:11.6 tCO2e/year
Renewable Energy Share:60%
Total Energy Consumption:40,355,877 kWh/year
Carbon Intensity:2.25 tonnes of CO2e per tonne of saleable product

ESG Focus Areas

  • Environment
  • Social
  • Governance

Environmental Achievements

  • Successful energy saving initiatives in Stoke-on-Trent manufacturing process leading to substantial savings in energy, cost and processing time
  • Continued use of wind power at Lake District manufacturing site
  • Recycling manufacturing waste and utilising recyclable packaging materials where possible
  • 100% of waste clay and glaze at our Portmeirion UK Stoke-on-Trent site is reused within our manufacturing processes
  • Nearly 60% of the energy used at Wax Lyrical’s production site in Cumbria during 2020 was provided by wind turbine

Social Achievements

  • Adapted work practices to make Covid-19 secure, taking all suggestions and concerns of employees into account to safeguard their health and wellbeing
  • Portmeirion UK was rated at ‘sustained compliance’ by HM Specialist Inspector of Health and Safety for Covid-19 secure practices
  • Portmeirion UK published its gender pay gap statistics in April 2020 which noted a reduction from 13.9% in April 2019 to 12.4%
  • 100% of our employees received training during 2020
  • Portmeirion UK and Wax Lyrical are officially recognised as Investors in People at gold level
  • Provided donations of products and hand sanitiser to local charities, the NHS and care homes during 2020

Governance Achievements

  • Complied with all principles of the QCA Corporate Governance Code throughout the year
  • Board strengthened with two new Executive Directors and one Non-executive Director

Climate Goals & Targets

Medium-term Goals:
  • Own website sales to represent at least 20% of total Group sales
Short-term Goals:
  • Reduce cost per unit by 10% by the end of 2023

Environmental Challenges

  • Covid-19 pandemic caused significant disruption to retail markets and supply chains
  • High levels of product re-shipped from other markets impacted South Korean sales
  • Accelerated shift of retail sales to online channels due to lockdowns
Mitigation Strategies
  • Increased investment in online channels and fulfilment capabilities
  • Took steps to reduce parallel shipping of products into South Korea
  • Repurposed home fragrance factory to manufacture hand sanitiser for NHS and other customers
  • Developed alternative sourcing strategies
  • Reorganised export sales teams to accelerate growth in new markets

Supply Chain Management

Responsible Procurement
  • Supplier Code of Conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: QCA Corporate Governance Code

Certifications: Investors in People Gold

Sustainable Products & Innovation

  • Reed diffusers using a natural blend to reduce carbon footprint

Awards & Recognition

  • Investors in People Gold

Reporting Period: 2021

Environmental Metrics

ESG Focus Areas

  • Climate Change
  • Diversity & Inclusion
  • Supply Chain Sustainability
  • Community Engagement
  • Employee Wellbeing

Environmental Achievements

  • Achieved '0% to landfill' at Stoke-on-Trent ceramic manufacturing site

Social Achievements

  • Retained UK Investors in People Platinum accreditation

Governance Achievements

  • Established a new Sustainable Business Board Committee

Climate Goals & Targets

Long-term Goals:
  • Achieve Net Zero by 2040 across Scope 1 and 2 emissions
Medium-term Goals:
  • Achieve Net Zero by 2040 across Scope 1 and 2 emissions
Short-term Goals:
  • Move beyond existing legal requirements for our supply chain, reviewing all our suppliers based on specified Portmeirion Group standards by 2025

Environmental Challenges

  • Reducing Scope 3 emissions
  • Improving supply chain transparency
  • Decarbonizing ceramics manufacturing
Mitigation Strategies
  • Developing a Group-wide biodiversity plan
  • Working with suppliers to apply Portmeirion Group people principles
  • Developing a pathway to Net Zero across Scope 1 and 2 emissions by 2040

Supply Chain Management

Responsible Procurement
  • Applying Portmeirion Group people principles across the value chain

Climate-Related Risks & Opportunities

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:7084.1 + 237.2 tCO2e (Stoke-on-Trent + Lake District)
Scope 1 Emissions:7322.2 tCO2e
Scope 2 Emissions:1357.6 tCO2e
Scope 3 Emissions:21.1 tCO2e
Renewable Energy Share:55% (Wax Lyrical)
Total Energy Consumption:44,562,288 + 1,701,829 kWh (Stoke-on-Trent + Lake District)
Waste Generated:1047 tons (Stoke-on-Trent)
Carbon Intensity:3.37 tCO2e per tonne of saleable product (Stoke-on-Trent)

ESG Focus Areas

  • Environment
  • Social
  • Governance

Environmental Achievements

  • Reduced carbon emission per tonne of saleable product by 10% in Stoke-on-Trent factory.
  • 55% of energy used at Wax Lyrical operation was provided by wind turbine.
  • 0% waste going to landfill from the Stoke-on-Trent operation. 61% of waste recycled.

Social Achievements

  • Both UK businesses achieved Investor in People Platinum level accreditation.
  • Positive unplanned Health and Safety Executive (HSE) audit.
  • At least 93% “in favour” proxy votes from shareholders on each resolution at the 2022 AGM.
  • Successfully achieved ISO 22716:2007 accreditation for cosmetic products.
  • Home Fragrance manufacturing site certified in ISO 9001:2015.

Governance Achievements

  • Complied with all principles of the QCA Code throughout 2022.
  • Adopted updated articles of association at the Annual General Meeting.

Climate Goals & Targets

Long-term Goals:
  • Net zero emissions (implied).
Medium-term Goals:
  • Improve operating margins to 10% (medium-term target) and 12.5% (long-term ambition).
  • Double rest of world sales against 2020 base.
  • Build three new sizeable international markets.
Short-term Goals:
  • Publish new sustainable business strategy and roadmap in first half of 2023.

Environmental Challenges

  • Ongoing macroeconomic uncertainty impacting consumer spending.
  • Supply chain disruptions and inflation.
  • Cost of living crisis impacting consumer demand in UK and home fragrance category.
  • Weaker trading in Europe due to the war in Ukraine.
Mitigation Strategies
  • Diversified sales markets and online sales channels.
  • Investment in factory automation and productivity gains.
  • Acquisition of AromaWorks London brand to improve home fragrance division.
  • Investment in online and digital capabilities.
  • Close relationships with key customers and suppliers.
  • Cost reduction initiatives.

Supply Chain Management

Supplier Audits: Suppliers required to complete SEDEX audits.

Responsible Procurement
  • SEDEX audits
  • Working with suppliers to remove or reduce single-use plastics.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: QCA Corporate Governance Code 2018

Certifications: ISO 22716:2007, ISO 9001:2015, Investor in People Platinum

Awards & Recognition

  • Employee Engagement Award
  • Decarbonisation in Action Award

Reporting Period: 2023

Environmental Metrics

Renewable Energy Share:58% (Wax Lyrical)
Waste Generated:857 tons/year (UK operations)
Carbon Intensity:8.5% increase in UK Ceramics – tonnes of CO2e per tonne of saleable product; 26% decrease in UK Home Fragrance – tonnes of CO2e per tonne of saleable product

ESG Focus Areas

  • Climate change
  • Employee well-being
  • Community engagement
  • Supply chain sustainability

Environmental Achievements

  • Energy usage reduced by 8% compared to the prior year.
  • 15% reduction in total waste generated in 2023 compared to 2022. 59% is recycled and the remaining waste is repurposed, contributing to our 0% landfill rate.
  • 58% of energy used at Wax Lyrical operation in 2023 was provided by wind turbine

Social Achievements

  • Launched a new sustainability roadmap entitled ‘Crafting a Better Future’
  • Both UK businesses are Investors in People Platinum level accredited.
  • 53 product donations to local charities
  • Over £10,000 donated to local causes

Governance Achievements

  • Appointment of Jeremy Wilson as a Non-executive Director
  • Establishment of a Business Sustainability Committee

Climate Goals & Targets

Long-term Goals:
  • Achieve carbon neutrality by 2040 across our Scope 1 and 2 emissions
Medium-term Goals:
  • Understand our global nature footprint and develop a Group wide biodiversity plan.
  • Enhance our materiality assessment to understand more about our Scope 3 emissions.
Short-term Goals:
  • Reduce Scope 1 and 2 emissions for UK operations by 30% by 2025
  • All new company vehicles will be fully electric where possible.
  • Achieve ‘0% to landfill’ across entire UK business
  • Eliminate single use plastics throughout our operations

Environmental Challenges

  • Weaker global consumer spending, particularly in North America and South Korea due to inflation and interest rate rises.
  • Supply chain disruptions and inflationary impact on consumer spending.
  • Higher cost of capital impacting profitability of the home fragrance division.
Mitigation Strategies
  • Cost base restructuring resulting in anticipated 10% lower overhead costs in 2024.
  • Investments in factory automation and productivity gains to offset input cost inflation.
  • Focus on working capital efficiency, reducing inventory by 13%.

Supply Chain Management

Responsible Procurement
  • Ethical trading code of conduct
  • SEDEX audits

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events
Transition Risks
  • Raw material availability
  • Energy price volatility
  • Supply chain changes
  • Increased regulatory requirements
Opportunities
  • Development of energy-efficient products
  • Expansion of renewable energy capacity

Reporting Standards

Frameworks Used: TCFD

Certifications: Investor in People Platinum (UK businesses)