Climate Change Data

Environmental Metrics

ESG Focus Areas

• Health, Safety and Wellbeing
• Thriving People
• Sustainable Sourcing
• Energy and Emissions
• Electric Vehicle Transition
• Waste

Environmental Achievements

• Distribution businesses are shifting to 100% renewable electricity during FY24 as a key step towards meeting GUD’s 2025 Carbon Neutral target for distribution businesses (ahead of schedule)
• Launched the Infinitev business unit to create a circular economy for EV batteries
• Davey 6-star energy rating pump recognised in Pool and Spa industry Sustainable Product Awards

Social Achievements

• Fully integrated acquired businesses into the GUD Safety program
• Launched GUD Graduate Program and Future Leaders Program
• Inaugural GUD Sustainability Excellence Award presented

Governance Achievements

• The Board performed a detailed review of incentive structures during the FY23 year, making changes to address investor feedback, and has clarified and improved the Remuneration Report

Climate Goals & Targets

Environmental Challenges

• long lead times, inventory disruption, inbound and outbound freight instability and labour shortages in our manufacturing operations
• supply constraints of new vehicles which have been well documented globally and resulted in unmet demand and backorders at heightened levels

Mitigation Strategies

• balancing the day-to-day operating challenges of the continuing volatility experienced in the post-Covid world, with a clear purpose on deliverables at the earnings, cash, margin, and balance sheet levels
• cost management initiatives and price rises in the retail channel

Supply Chain Management

Supplier Audits: 5 supplier sites

Responsible Procurement

• GUD’s Ethical Sourcing Program
• Sedex platform

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Sustainable Products & Innovation

• Davey ProMaster400BT 6-star energy rating variable speed pool pump
• DBA Street Series EV Brake Pads
• Projecta brand establishing and growing its range of EV charging cables and accessories
• Rola Titan Tray MKIII

Awards & Recognition

• AFR Most Innovative Companies Award (Manufacturing & Consumer Goods sector)
• Westpac employer of the year award
• GUD Sustainability Excellence Award

Environmental Metrics

ESG Focus Areas

• Health, Safety & Wellbeing
• Thriving People
• Sustainable Sourcing
• Energy and Emissions
• Electric Vehicle Transition
• Waste

Environmental Achievements

• Reduced Scope 1 & 2 emissions to 9.1 ktCO2e (from 11.7 ktCO2e in FY23)
• Australian distribution businesses implemented GreenPower purchase agreements for renewable electricity (estimated 1,500MWh, equivalent to ~1,000 tCO2e reduction p.a.)
• Brown & Watson International installed a 200kW onsite photovoltaic system, reducing grid electricity demand by half in the first month of operation.
• Best Bars upgraded to variable-speed drive air compressors, reducing electricity consumption by ~40MWh per year.

Social Achievements

• Improved Lost Time Injury Frequency Rate (LTIFR) to 6.6 (from 7.7 in FY23), better than industry average of 13.2
• Increased employee engagement score to 89% (from 86% in FY23), above global average of 86%
• Launched a refreshed Group-wide Parental Leave Policy
• 95% of supplier spend at bronze level or higher in ethical sourcing program (from 89% in FY23)

Governance Achievements

• Integrated ESG strategy with broader strategy, targets, risk management, and incentive structures.
• Commissioned a comprehensive, independent health, safety and wellbeing assurance review.
• Established the Amotiv Asia Sourcing Office (ASO) to manage ethical sourcing due diligence and conduct on-site supplier quality reviews.

Climate Goals & Targets

Environmental Challenges

• Macroeconomic and geopolitical volatility
• Disruptive technology (EV transition)
• Sustainability and climate change
• Over-reliance on single customers
• Supply chain disruptions
• Cybersecurity threats
• Product quality and regulatory compliance
• Attracting and retaining qualified personnel
• Legal and regulatory compliance

Mitigation Strategies

• Ongoing monitoring of geopolitical and macroeconomic trends; strategic planning to mitigate supply chain risks; product diversification; market diversification; leveraging non-ICE opportunities; executing ESG strategy; investing in EV solutions; procuring renewable energy; preparing for new climate disclosure standards; focusing on sustainable packaging; maintaining strong customer relationships; assessing new market entrants; diversifying customer base; advancing HSW systems and procedures; improving cyber security; focusing on product quality and compliance; advancing employee value proposition; ongoing employee training; managing regulatory policies.

Supply Chain Management

Supplier Audits: 1,010 suppliers assessed in Ethical Sourcing Program

Responsible Procurement

• Ethical Sourcing Code
• Modern Slavery Statement

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes
• Market shifts to EVs

Opportunities

• Development of energy-efficient products
• EV aftermarket leadership

Sustainable Products & Innovation

• Infinitev EV battery remanufacturing and repair

Awards & Recognition

• AFR Innovation Awards (Ryco)
• Good Design Award
• TMRRW Award (Circular Economy Business Practices)