Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change

Environmental Achievements

• 61 sites with ISO 14001 certification (increasing to 70 in 2023)
• 5 sites with BREEAM certification
• 46% LED lighting coverage (aiming for 57% by end of 2023 and 80% by 2025)
• 25% REGO certified green tariff electricity (aiming for 100% by 2030)
• 5 sites with Solar PV installed
• 98% landfill diversion rate in the UK
• Paperless manifests saving 2.83 tCO2e and paper
• Automatic balers increasing recycling rates by 400 tonnes/year and saving 261 tonnes of CO2e annually
• Processing waste on-site saving 20 vehicle loads and £38,000
• Shrink wrap reduction saving 144,615 kgs of plastic
• Reusable sacks replacing cardboard saving 275 tCO2e/year and £140,000

Social Achievements

• Roll out of ESG Ambassador programme
• Increased lower carbon company car options (59% electric/hybrid, 32% electric)

Governance Achievements

• This Carbon Reduction Plan has been reviewed and signed off by the board of directors

Climate Goals & Targets

Environmental Challenges

• Rapid business expansion increasing emissions
• 79% of carbon footprint is transport-related, dependent on development of lower carbon fuels
• Scope 3 emissions data collection and reporting still under development

Mitigation Strategies

• Monitoring progress against intensity measures (tCO2e/m2, tCO2e/km driven, tCO2e/million GBP revenue)
• Global scope 3 project underway to analyze emissions profile and boundary setting
• Implementing various carbon reduction projects (LED lighting, renewable energy, waste reduction, etc.)
• Collaboration with Logistics UK 'Route to Net Zero' campaign
• Trials with electric and hydrogen vehicles
• Project to review sub-contractor reporting (scope 3 emissions)

Supply Chain Management

Responsible Procurement

• Project to review current systems and methodology for Sub Contractor reporting (scope 3 emissions)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: CDSB Framework 1.1, GHG Protocol Corporate Standard, SECR

Certifications: ISO 14001, BREEAM

Environmental Metrics

ESG Focus Areas

• Energy and greenhouse gas (GHG) emissions
• Diversity, inclusion and belonging
• Employee engagement
• Health and safety
• Talent management
• Information security

Environmental Achievements

• 14.9% reduction in emission intensity since 2021
• 78.7% of waste associated with operations diverted from landfill globally
• 61% of global operations using energy-efficient LED lighting

Social Achievements

• Named Top 50 U.S. Company for Diversity
• Global rollout of ESG Ambassador Program
• Over 1.2 million total learning hours

Governance Achievements

• Launched a new cloud-based tool to enhance Enterprise Risk Management
• Launched a global Business Partner Code of Conduct
• Delivered a privacy training program to GXO’s global team

Climate Goals & Targets

Environmental Challenges

• Gaining a more detailed understanding of Scope 3 emissions
• Expanding reporting practices

Mitigation Strategies

• In 2023, GXO will continue its holistic approach to ESG, including the new ESG Ambassadors program and expanding reporting practices.

Supply Chain Management

Supplier Audits: 100% of our suppliers are subject to standard third-party due diligence

Responsible Procurement

• Business Partner Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• severe weather events such as hurricanes, floods and fires

Reporting Standards

Frameworks Used: GRI, SASB

Certifications: ISO 14001, ISO 45001

Third-party Assurance: Grant Thornton

UN Sustainable Development Goals

• Goal 7
• Goal 13
• Goal 8
• Goal 10
• Goal 17

GXO's initiatives contribute to these goals through various environmental, social, and governance programs.

Awards & Recognition

• Newsweek’s America’s Most Responsible Companies
• AA ESG rating from MSCI
• 2022 Employer of the Year award from The Arc Maryland

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Climate Goals & Targets

Environmental Challenges

• Uncertainty inherent in the state of scientific or economic knowledge and in the quality of the external data used.
• Sensitivity of certain information to methodological choices, assumptions and/or estimates.
• Inherent uncertainty in the quantification of greenhouse gases due to incomplete scientific knowledge used to determine emission factors and values.
• Limited data for waste quantity in India (data from only two sites).

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Climate Change

Environmental Achievements

• 98% landfill diversion rate in the UK & Ireland
• 71% LED lighting coverage across GXO Logistics, Inc’s UK operations (inclusive of GXO Logistics UK)
• 25% REGO certified green tariff electricity for GXO Logistics UK
• Automatic balers increased recycling rates by 400 tonnes per year, saving 261 tonnes of CO2e annually at one site
• Processing waste on-site saved 20 vehicle loads, equating to £38,000 saving and emissions saved from transportation at one site
• Paperless manifests saved energy (2.83 tCO2e) and paper at one site
• Shrink wrap reduction resulted in a plastic saving across 25 sites of 144,615 kgs of plastic
• Reusable sacks replacing pre-printed cardboard saved 275 tCO2e a year and £140,000 savings at one site

Social Achievements

• Roll out of ESG Impact Ambassador programme across 80+ GXO Logistics, Inc sites within the UK (inclusive of GXO Logistics UK)
• Comprehensive sustainability training to all staff through GXO University Platform
• 83% of company cars are electric or hybrid (as of January 2024)
• Microsoft Teams usage reduced business travel

Governance Achievements

• 73 Sites with ISO 14001 certification
• 5 Sites with BREEAM certification
• Participation in EcoVadis sustainability assessments and reporting to the Carbon Disclosure Project (CDP)

Climate Goals & Targets

Environmental Challenges

• 79% of carbon footprint is transport-related, dependent on development and advancements in lower carbon fuels
• Rapid business expansion increasing emissions
• Scope 3 emissions reporting complexity

Mitigation Strategies

• Implementing GHG management hierarchy (monitoring, avoiding, reducing, substituting, compensating emissions)
• Investing in alternative fuels (LNG, CNG, Biomethane CNG, Green HVO, Hydrogen trials)
• Improving vehicle and fuel efficiency, route optimization, load optimization
• Utilizing telematics for driver coaching and fuel efficiency improvements
• Increasing renewable energy sources (solar PV)
• Reducing electricity demand through energy audits and efficiency projects
• Waste minimization and prevention projects
• Sustainable commuting initiatives

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Working with subcontractors to review Scope 3 categories
• Encouraging and implementing sustainable travel policies and working with travel providers

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Dependence on fossil fuels for transport

Opportunities

• Development of energy-efficient products and services
• Adoption of lower carbon fuels and technologies

Reporting Standards

Frameworks Used: GHG Protocol Corporate Standard, CDSB Framework 1.1, SECR

Certifications: ISO 14001, BREEAM

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed