Climate Change Data

Environmental Metrics

ESG Focus Areas

• Modern Slavery
• Environment
• Charitable Partnerships

Environmental Achievements

• Revamped packaging to reduce environmental footprint and improve trailer fill; reduced paper use through paperless trade integrations and invoicing.
• Developed an alternative void fill solution from near 100% recycled materials.

Social Achievements

• Certified Mental Health First Aid training for ten colleagues; creation of a new Mental Health and Wellbeing Policy; additional HR support including employee welfare meetings and Wellness Action Plans; Employee Assistance Programme with access to online resources, 24/7 helpline and counselling services.
• Improved mean gender pay gap from 9.2% to 6.5%.

Governance Achievements

• Adopted and embraced the 2018 QCA Corporate Governance Code; refined themes in accordance with Section 172(1) of the Companies Act 2006.
• Appointed Grant Thornton UK LLP as auditors, replacing KPMG LLP.

Climate Goals & Targets

Environmental Challenges

• COVID-19 impact on consumer demand, retail and warehousing operations, consumer confidence, disposable income, shopping habits, operational capability, supply chains, and product availability.
• Uncertainty related to Brexit and its potential impact on consumer confidence, cross-border controls, duties on UK imports into the EU, currency movements, and freedom of movement of people.
• Rapid growth requiring expansion and enhancement of infrastructure, technology, operational and financial systems, and procedures.
• Expansion into new jurisdictions presenting risks related to regulatory requirements, staffing, consumer behavior, currency fluctuations, political and economic instability, contract enforcement, intellectual property rights, fraud, and tax consequences.
• Technological changes requiring adaptation to maintain competitive advantage.
• Disruption to distribution center operations due to power failures, equipment failures, IT system failures, fires, floods, or other unforeseen events.
• Interruptions to warehousing, onward distribution, and logistics networks.
• Changes to search engine algorithms affecting website rankings and traffic.
• Data security and IT reliability risks.
• Maintaining brand and proposition market recognition.
• Competition in the UK and European retail market.
• Reliance on sub-contractors for own-brand product manufacturing.
• Dependence on key personnel.

Mitigation Strategies

• Adapting working practices to keep distribution centers open during COVID-19; building up stock ahead of Chinese New Year and lockdown; maintaining good product availability; monitoring shopping habits post-lockdown; financial robustness to benefit from transition to a ‘new normal’.
• Monitoring Brexit developments; minimizing cross-border activity; utilizing European operations to fulfill European demand; adapting operational arrangements as needed; establishing teams and capacity in Swedish and German sites; reviewing competitor activity; mitigating exchange rate fluctuations; buying products in Euros and Krona.
• Actively monitoring and responding to maintain appropriate systems and practices; consolidating internal processes and controls; improving Group resilience; recruiting into key management positions; expanding the Finance function.
• Seeking professional input into major developments; establishing local subsidiaries and recruiting local management; measured and capital-efficient expansion into Europe.
• Allocating significant annual budget to in-house software development.
• Operating three distribution centers; maintaining sufficient insurance cover; implementing a formal disaster recovery plan.
• Regular reviews of capacity; developing follow-up plans; operating from three distribution centers; maintaining multiple delivery service providers; tracking service level agreements.
• Operating search engine optimization activities adhering to search engine guidelines.
• Investing in IT infrastructure, including robust cloud-based backup systems; implementing a disaster recovery plan.
• Rigorous monitoring of customer feedback; careful selection and testing of own-brand products.
• Competing on various factors including product quality, range, price, availability, information, convenience, delivery options, and service.
• Establishing relationships with over 30 manufacturers; implementing robust take-on and ongoing monitoring procedures for quality control and delivery performance.
• Compensating senior management through market-rate salaries and long-term share-based incentives; recruiting into key management positions; regular Operational Board meetings; key man insurance.

Supply Chain Management

Supplier Audits: 40 factory inspections in 29 months

Responsible Procurement

• Independent inspections of third-party facilities; written ‘factory inspection’ reports; ceasing use of factories failing to meet standards.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Climate Disclosure Standards Board protocol

Environmental Metrics

ESG Focus Areas

• Climate change
• Waste management
• Product safety and quality
• Supply chain labor standards
• Employee wellbeing
• Board diversity

Environmental Achievements

• Scope 1 emissions fell by 5%, Scope 2 emissions by 14%
• Installed solar panels at York distribution centre
• Launched second-hand platform, committing to circular economy

Social Achievements

• Signed up to the Charter for Employers Positive about Mental Health
• 30 certified Mental Health First Aiders
• Various wellbeing initiatives (Time to Talk Day, Financial Wellbeing, Red Heart Day, etc.)
• Launched new Learning & Development hub

Governance Achievements

• Published first TCFD-aligned Climate Report
• Formed Nominations Committee to oversee Board restructuring
• Welcomed new Senior Independent Director and Non-Executive Director

Climate Goals & Targets

Environmental Challenges

• Macroeconomic and geopolitical changes impacting consumer confidence and demand
• Increased time and cost of moving products across UK-EU border
• Climate change risks (transitional and physical)
• Supply chain disruptions (reliance on China for manufacturing)
• Cybersecurity threats

Mitigation Strategies

• Cost reduction program to improve profitability
• Established European distribution centers to reduce cross-border activity
• Implementing energy-saving initiatives and exploring renewable energy options
• Developing alternative sourcing strategies and expanding second-hand business
• Investing in IT infrastructure, security assessments, and robust incident response protocols

Supply Chain Management

Supplier Audits: 28 inspections in 2023

Responsible Procurement

• Strict supplier code of conduct addressing labor standards, health & safety, environmental concerns, and anti-corruption

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Policy changes, market shifts

Opportunities

• Second-hand market growth

Reporting Standards

Frameworks Used: TCFD

Certifications: ISO 14001

Third-party Assurance: Ricardo (limited assurance on Scope 3 GHG inventory)

Sustainable Products & Innovation

• Second-hand products