Climate Change Data

Environmental Metrics

ESG Focus Areas

• Modern Slavery
• Diversity and Inclusion
• Employee Wellbeing
• Stakeholder Engagement
• Responsible Business Conduct

Social Achievements

• Implemented a Modern Slavery Statement and policy.
• Commitment to diversity and inclusion.
• Employee wellbeing initiatives (agile working to mitigate COVID-19 impact).

Governance Achievements

• Adopted the Quoted Companies Alliance Corporate Governance Code.
• Established an Audit Committee, Remuneration Committee, and Risk and Regulation Committee.
• Regularly reviews risk management and internal control mechanisms.

Climate Goals & Targets

Environmental Challenges

• Potential reduction in fee income from legislative changes.
• Government actions impacting cost/damage recovery.
• Reliance on key lawyers.
• Reliance on senior management.
• Risk of losing cases.
• Weaknesses in IT systems & cyber security.
• Health & safety issues.
• Competition.
• Retention of garages and work sources.
• Regulatory compliance.
• GDPR/personal data risk.
• Adverse costs from litigation.
• Bank covenants.
• General expenditure increase.
• Cash spend.
• COVID-19 impact on health and safety, new business, and cash collections.

Mitigation Strategies

• Education of key staff on risks.
• Monitoring of case law and statutes.
• Staff satisfaction and ongoing recruitment.
• Incentivized key lawyers and competitive packages.
• Ongoing recruitment policy.
• Review of lost cases and risk analysis of new business.
• Vetting of potential claims and specialized counsel.
• Regular reviews and testing of IT systems.
• Health & safety management systems.
• Competitive product offerings and investment in service development.
• Nurturing garages and training on compliance.
• Staff training on GDPR, spot checks, and system reviews.
• Continuous discussion with management and fee earners.
• Daily, weekly, and monthly checks on bank covenants.
• Regular cost monitoring and review.
• Regular cash spend and cost reviews.
• Operational adjustments to comply with government guidelines.
• Regular risk assessments to ensure staff, client, and third-party protection.
• Recent fundraise and additional loan facilities to enhance headroom.

Supply Chain Management

Responsible Procurement

• Supplier engagement and management to prevent modern slavery.
• Fair trading and payment terms.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: QCA Code

Environmental Metrics

ESG Focus Areas

• Climate Change
• Social Responsibility
• Governance

Environmental Achievements

• Reduced GHG emissions from 683.43 tCO2e in 2021 to 480.40 tCO2e in 2023 (location-based) and from 922.53 tCO2e in 2021 to 694.02 tCO2e in 2023 (market-based). Implemented energy efficiency measures including switching off appliances, considering renewable electricity tariffs, investigating solar panels and LED bulbs, and minimizing business travel.

Social Achievements

• Increased staff numbers in Legal Services by 3.5% to 702, with a 11.9% increase in senior fee earners to 283. Expanded housing disrepair team (staff increased by 27.8% to 69) and large loss team (staff increased by 22.2% to 77). Implemented equal opportunities and diversity policy. Established a training academy and training fund to widen access to legal careers. Whistleblowing procedures in place.

Governance Achievements

• Adopted the Quoted Companies Alliance Corporate Governance Code. Established oversight mechanisms for climate-related risks and opportunities at Board level. Risk and Regulation Committee meets three times a year. Annual Board performance evaluations. Share Dealing Policy in place. Anti-Bribery Policy in place. Modern Slavery Act Statement published on website.

Climate Goals & Targets

Environmental Challenges

• Continued delays within the judicial system impacting cash received and profitability, particularly in Legal Services. Competition from other companies offering similar services. Retention of garages and sources of work. Regulatory compliance (Code of Conduct, Solicitors Accounts Rules, FCA rules, GDPR, LASPO). Potential reduction in fee income from legislative changes or reduced settlement rates. Government actions and legal developments impacting cost recovery. Reliance on senior management and key lawyers. Risk of losing cases. Weaknesses in IT systems and cybersecurity. Health and safety issues. Climate-related risks (policy and legal changes, technology substitution, market shifts, reputational damage, acute physical risks like storms and flooding, heat waves).

Mitigation Strategies

• Prudent management of fleet levels in Credit Hire. Focus on increasing cash collections in Legal Services. Investment in staff and infrastructure in Bond Turner. Negotiating early settlement arrangements with insurers. Keeping abreast of legal and regulatory developments. Ongoing recruitment and succession planning. Incentivizing key staff. Reviewing cases lost to identify areas for improvement. Regular IT reviews and testing. Appropriate insurance coverage. Health and safety management systems. Integrating climate considerations into strategic planning. Robust risk management processes. Scenario analysis and stress testing.

Supply Chain Management

Responsible Procurement

• Supplier engagement and management to prevent modern slavery. Fair trading and payment terms.

Climate-Related Risks & Opportunities

Physical Risks

• Increased storms and strong winds
• Increased flooding
• Increased heat waves

Transition Risks

• Increased pricing of GHG emissions/carbon taxes
• Enhanced emissions reporting obligations
• Mandates on and regulation of existing products and services
• Substitution of existing services with lower emissions options
• Increased energy costs
• Upfront costs to transition to lower emissions technology
• Changing customer behaviour
• Uncertainty in market signals
• Shift in consumer preferences
• Increased stakeholder concern

Reporting Standards

Frameworks Used: TCFD

Third-party Assurance: Green Element Limited and Compare Your Footprint Limited