Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Circularity
• Water Stewardship
• Employee Well-being
• Community Engagement
• Supply Chain Sustainability

Environmental Achievements

• Achieved Net-Zero Energy status in 2020
• 95.3% of waste diverted from landfill in 2021
• 28.6 GWh renewable energy generated
• 5 million litres per year rainwater harvesting capacity at Sherburn facility
• Development of PowerPanel, a next-generation PV integrated insulated panel

Social Achievements

• Supported NHS projects and provided IT equipment to students during the Covid-19 pandemic
• Launched a new employee newsletter and organised virtual events to maintain employee engagement
• Implemented mental health training programs for employees and managers
• Continued to grow organically and through acquisitions despite the pandemic

Governance Achievements

• Implemented an Anti-Bribery & Corruption Policy with annual refresher training
• Utilize formal management systems such as ISO 9001, ISO 14001, ISO 45001, and ISO 50001

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to the pandemic
• Delays in on-site renewable energy projects due to planning and Covid-19
• Data quality issues in water and waste categories
• Need to engage suppliers to reduce their carbon emissions

Mitigation Strategies

• Implemented data management software (Diligent) to track progress
• Appointed a Divisional Planet Passionate Data Manager to improve data quality
• Ongoing work with supply partners to develop lower embodied carbon raw materials
• Implementing energy efficiency programs and exploring low-carbon technology alternatives

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Ecovadis used for supply chain tracking
• Investment and support to innovators in the supplier pool
• Development of a lower carbon 'Concept Panel' at the IKON Innovation Centre

Climate-Related Risks & Opportunities

Physical Risks

• Physical risk to operations or those of our suppliers

Transition Risks

• Regulatory changes
• Substitution risk
• Rising energy or carbon prices

Opportunities

• Reducing carbon emissions in the built environment
• Developing energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: ISO 9001, ISO 14001, ISO 45001, ISO 50001

Third-party Assurance: FBRH Consultants Ltd

UN Sustainable Development Goals

• SDG 3
• SDG 6
• SDG 7
• SDG 12
• SDG 13
• SDG 17

The report details how Kingspan's initiatives contribute to these goals.

Sustainable Products & Innovation

• PowerPanel
• Concept Panel (lower embodied carbon)

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Energy
• Carbon
• Circularity
• Water
• Biodiversity
• Community Engagement
• Workplace Safety and Wellness
• Training and Education
• Responsible Procurement and Supply Chain Management
• Talent Attraction, Retention and Growth
• Diversity, Equity and Inclusion

Environmental Achievements

• Reduced landfill waste by over 400 tonnes in 2022 (increased in 2023 due to site developments)
• Increased on-site renewable energy generation by 1.37 GWh in 2022 through solar PV installations
• Almost 18% of total site water use came from harvested rainwater in 2023
• Launched QuadCore™ LEC, a lower embodied carbon variant of QuadCore insulated panels, with a 22% reduction in embodied carbon compared to existing products
• 14,400m2 PV installed across the division

Social Achievements

• Supported 270 community projects with €496,500 donated in 2022 & 2023
• No fatalities and a reduction in lost time incidents in 2022 and 2023
• Launched People Passionate initiative in 2023 to enhance employee experience
• Employees participated in leadership development programs (Yours to Shape, PEAK)

Governance Achievements

• Implemented ISO 37301 certification
• Established a confidential whistle-blowing system through Navex
• Regular internal audits across high and low-risk sites

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions (implied, not explicitly stated)
• Small return in survey responses for materiality assessment in 2022

Mitigation Strategies

• Adjustments made to the materiality process for future reports to benefit from a larger sample size
• Collaboration with supply chain partners to reduce embodied carbon of products

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Collaboration with supply chain partners to reduce embodied carbon

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI

Certifications: LEED Gold (Phu My site in Vietnam)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• QuadCore™ LEC

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Circularity
• Protection of Natural World
• People
• Diversity & Inclusion

Environmental Achievements

• 65% reduction in Scope 1 & 2 GHG emissions from a 2020 baseline
• Direct renewable energy usage increased to 34.1%
• Percentage of wholly owned sites with on-site solar PV systems increased to 49.6%
• Total rainwater harvested from manufacturing locations increased to 56.7 million litres
• Waste to landfill reduced by 33% since 2020
• Launched three lower embodied carbon (LEC) products
• Recycled 858 million PET bottles

Social Achievements

• Launched People Passionate programme to enhance employee experience
• Offered childcare assistance to female employees in Brazil
• Donated insulated panels and daylighting panels to support female artisans in Brazil
• Donated produce from on-site cultivation to charitable organizations
• 40% of most recent graduate programme were female
• 31% of senior executive team reporting to the CEO are female

Governance Achievements

• Appointment of Louise Phelan to the Board as an independent non-executive director
• Continued to build upon recommendations of external evaluation process carried out by Better Boards in 2022
• Launched People Passionate programme to assess and monitor evolution of Group’s performance and corporate culture
• 59 of global sites certified to ISO 37301, with a plan to have 85 sites certified by the end of 2024

Climate Goals & Targets

Environmental Challenges

• Volatility in the macro environment (economic conditions, pandemics, political uncertainty, wars, interest rates, supply chain disruption)
• Potential for product failure
• Failure to innovate
• Climate change (regulatory changes, substitution risk, rising energy/carbon prices, physical risks)
• Business interruption (physical infrastructure, technology, raw materials, IT systems)
• Credit risks
• Talent development and retention
• Fraud and cybercrime
• Acquisition and integration of new businesses
• Health and safety

Mitigation Strategies

• Geographic diversification, new products, acquisitions
• Rigorous quality controls, testing, certification, ISO 37301 compliance, Group Product Compliance Team, Group Marketing Integrity Manual
• Continual product portfolio review, executive innovation forum, Planet Passionate strategy, IKON Global Innovation Centre, Kingspan Fire Engineering Research Centre, omnichannel customer approach
• Planet Passionate programme, science-based targets, investment in sustainable raw materials, LEC products, global supply partners
• Preventative maintenance, business continuity plans, PDBI insurance, IP protection, diverse raw material suppliers, robust IT infrastructure, IT business continuity and disaster recovery plans
• Rigorous credit control, credit insurance, regular review of overdue balances
• People Passionate programme, recruitment processes, succession planning, remuneration reviews, career development programmes, talent forum, internal career portal, Yours to Shape development programme, PEAK programme, Advanced Management Programme
• Guidance and policies, internal audit programme, reporting to Audit & Compliance Committee, cyber security strategy, Cyber Security Roadmap, proactive cyber security services, MFA, phishing tests
• Rigorous assessment and evaluation, integration procedures, monitoring post-acquisition, increased internal audit focus
• Robust health and safety framework, health and safety training, ISO 45001 accreditation, strong safety culture

Supply Chain Management

Supplier Audits: 48% of key supply base by spend assessed using EcoVadis

Responsible Procurement

• Group Supplier Policy (business practices, ethical employment, anti-corruption, environmental responsibility)
• EcoVadis sustainability rating platform

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: Science-Based Targets initiative (SBTi)

Certifications: ISO 37301, ISO 9001, ISO 45001

Sustainable Products & Innovation

• PowerPanel™
• QuadCore™ LEC
• RMG600+ LEC
• LEC Tate Grid
• HempFlax insulation
• Steico wood wool insulation
• BioKor® insulation