Climate Change Data

Victoria PLC

Climate Impact & Sustainability Data (2022, 2024)

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:303,717 tCO2e/year
Scope 1 Emissions:249,234 tCO2e/year
Scope 2 Emissions:40,482 tCO2e/year
Scope 3 Emissions:77 tCO2e/year
Total Energy Consumption:1,548,654,291 kWh/year
Carbon Intensity:0.332 tCO2e/1000m2 (UK & Europe Soft Flooring), 4.887 tCO2e/1000m2 (UK & Europe Ceramic Tiles), 0.393 tCO2e/1000m2 (Australia), 0.004 tCO2e/1000m2 (North America)

ESG Focus Areas

  • Energy management
  • Carbon Emissions
  • Waste and Water management
  • Attracting, Developing and Retaining Talent
  • Diversity & Inclusion
  • Health Safety and Wellbeing
  • Responsible Sourcing
  • Human Rights and Modern Slavery
  • Reporting, Disclosure and Transparency

Environmental Achievements

  • Increased production output by 46% while delivering a significant reduction in man hours and waste.
  • Reduced water usage per square metre of carpet produced by 16% since acquisition.
  • Close to 100% of UK carpet waste expected to be converted into underlay by the end of 2023.
  • Diverted more than 1,000 tonnes of waste underlay away from landfill in Australia.
  • Developed a 100% recyclable underlay product in the UK.
  • Installed solar photovoltaic (PV) panels and wind turbines at many sites.
  • Switched to renewable energy sources at some sites.
  • Using the heat from spray driers to produce electricity from co-generation plants in Spain and Italy.
  • Nearby wind turbine supplying up to 40% of electricity needs at UK carpet manufacturing site.

Social Achievements

  • Avoided driver shortages in UK logistics by offering retention bonuses and benefits.
  • Initiated the ‘Talk With Me’ project in Spain to improve employee engagement.
  • Developed a new Teleworking Policy in Spain.
  • Focus on encouraging young people, especially girls, into STEM subjects in the UK underlay manufacturing business.

Governance Achievements

  • Adopted the Quoted Companies Alliance (“QCA”) Code.

Climate Goals & Targets

Long-term Goals:
  • Net-zero carbon warehouse operations.
Medium-term Goals:
  • By 2030, achieve 75% clean energy in Italian ceramics plant.
Short-term Goals:
  • By the end of 2023, close to 100% of UK carpet waste to be converted into underlay.
  • By 2030, improvements to hydrogen technology will enable up to 75% of the plants’ energy needs to be met by clean energy, reducing carbon emissions by 35%.

Environmental Challenges

  • Supply chain constraints
  • Significant inflationary pressures
  • High energy prices
  • Covid-19 lockdowns (particularly in Australia)
  • Shipping constraints (North America)
Mitigation Strategies
  • Successfully increased prices up to four times across each product area.
  • Laser-focussed on delivering synergy projects to increase operating margins.
  • Actively hedging or managing key input costs.
  • Deliberately structured with low operational gearing.
  • High cash conversion (90.5% pre-tax operating cash conversion over the last five years).
  • Production output supplied to order, reducing exposure to de-stocking risks.
  • Resilient balance sheet with cash and undrawn credit lines in excess of £200 million.
  • Long-duration, fixed interest rate, covenant-lite bonds.
  • Investing in cleaner, greener and more secure energy, sourced more locally.

Supply Chain Management

Responsible Procurement
  • Sourcing wood materials from sustainable sources (FSC or PEFC certified).
  • Developing a Supplier Code of Conduct (Interfloor).

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Streamlined Energy and Carbon Reporting (SECR), GHG Protocol

Certifications: ISO

Sustainable Products & Innovation

  • renu underlay (98% recycled materials, 100% recyclable)
  • Biodegradable artificial turf football field

Reporting Period: 2024

Environmental Metrics

Total Carbon Emissions:280,016 tCO2e/year
Scope 1 Emissions:193,171 tCO2e/year
Scope 2 Emissions:68,794 tCO2e/year
Scope 3 Emissions:228 tCO2e/year
Total Energy Consumption:1,345,285,384 kWh/year
Carbon Intensity:Intensity Ratios (tCO2e/1000m2)

ESG Focus Areas

  • Energy management
  • Carbon Emissions
  • Waste and Water management
  • Attracting, Developing and Retaining Talent
  • Diversity & Inclusion
  • Health Safety and Wellbeing
  • Responsible Sourcing
  • Human Rights and Modern Slavery
  • Reporting, Disclosure and Transparency

Environmental Achievements

  • Reduced total Global Gross emissions from 314,521 tCO2e to 280,016 tCO2e
  • Delivered first fully electric trucks, collecting over 1200 rolls of carpet per week carbon free
  • 95% of site waste (including cardboard, paper, yarn, and other raw materials) is being managed, segregated, and recycled at our carpet manufacturing plant in Wales
  • Achieved ISCC PLUS certification for our use of recycled content in Schramm yarn and backing powder
  • Developed an innovative new polyurethane coating for artificial grass products, eliminating water usage and requiring approximately 70% less gas to produce

Social Achievements

  • Launched several employee well-being initiatives, including office renovations and training programs
  • Partnered with non-profit organisations to support community initiatives
  • Ran pilot programs for apprenticeships and supported school students gaining work experience
  • Continued to focus on reducing accident frequency through safety campaigns and training

Governance Achievements

  • Established an ESG Committee to assist the Board in overseeing ESG matters
  • Aligned climate-related risks and opportunities disclosure with TCFD guidelines
  • Strengthened the finance function of Hanover Flooring Limited and implemented robust control environment

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Not disclosed
Short-term Goals:
  • Not disclosed

Environmental Challenges

  • Global flooring market downturn due to pull-forward of demand and macroeconomic factors
  • Aggressive pricing competition from Indian ceramics manufacturers
  • Volatility in the Turkish Lira and government-mandated wage increases
  • Challenges in recycling synthetic carpets and artificial grass due to complex material mixes
Mitigation Strategies
  • Completed integration projects to improve operating margins and reduce costs
  • Removed low-margin SKUs and non-profitable customers
  • Initiated projects to integrate production across ceramics businesses and optimize efficiency
  • Reformulated clay composition to produce thinner tiles, lowering energy consumption
  • Refocused Saloni brand on high-end commercial applications
  • Improved working capital management through better inventory control
  • Exploring opportunities for wider deployment of electric trucks
  • Investing in sustainable materials and recycled materials for products
  • Driving progress in carpet recycling through membership of Carpet Recycling UK

Supply Chain Management

Responsible Procurement
  • Supplier codes of conduct
  • Sustainable sourcing of wood materials (FSC/PEFC certified)
  • GRS certification for recycled products (Balta)

Climate-Related Risks & Opportunities

Physical Risks
  • Disruptions to supply chain due to flooding, extreme heat, drought, and sea level rise
Transition Risks
  • Energy price volatility
  • Increased costs from carbon taxes
  • Reputational damage from not meeting climate performance and disclosure requirements
Opportunities
  • Capturing market share by responding to consumer demand for more sustainable products

Reporting Standards

Frameworks Used: Streamlined Energy and Carbon Reporting (SECR), Task Force on Climate-Related Financial Disclosures (TCFD)

Certifications: ISO (various), ISCC PLUS

Third-party Assurance: Grant Thornton UK LLP

Sustainable Products & Innovation

  • Renu underlay (98% recycled and 100% recyclable)
  • Solution Dyed Nylon (SDN) products using recycled waste
  • Bio-based underlay using renewable source sugar cane
  • Artificial grass yarn and secondary backing containing end-of-life materials