UP Global Sourcing Holdings plc
Climate Impact & Sustainability Data (2020, 2022-02 to 2022-01)
Reporting Period: 2020
Environmental Metrics
Total Carbon Emissions:569.71 tCO2e/year (Scope 1 & 2)
Scope 1 Emissions:266.16 tCO2e/year
Scope 2 Emissions:303.55 tCO2e/year
Total Energy Consumption:2,068,872 KWh/year
ESG Focus Areas
- Community
- People
- Environment
Environmental Achievements
- Reduced CO2 impact of Heron Mill warehouse despite increased operating hours.
- Achieved a DEC rating of Category B for both UK sites (better than expected).
Social Achievements
- Launched a UK-wide Employee Assistance Programme (EAP).
- Introduced a new mentoring programme for new colleagues.
- Increased expenditure on external training by 27% compared to FY19.
- 83% employee participation in the Annual Engagement Survey.
- Repaid all monies received under the Coronavirus Job Retention Scheme.
- Supported local charities, hospitals, and community organizations.
- Donated household essentials, face masks, and other items to support local hospitals and front-line workers.
- Donated £10,000 to Action Together's micro-grants initiative.
Governance Achievements
- Appointed two new female independent Non-Executive Directors (Jill Easterbrook and Christine Adshead).
- Updated the Terms of Reference of Board committees to align with the 2018 UK Corporate Governance Code.
- Conducted a formal performance appraisal of the Board and its committees.
Climate Goals & Targets
Medium-term Goals:
- Elevate Progress and Kleeneze brands to revenue levels of Salter and Beldray within three years.
Short-term Goals:
- Reduce the use of single-item plastics by 85% by 2022.
- Achieve a Category A DEC rating by 2025.
Environmental Challenges
- Supply chain disruptions due to COVID-19 lockdowns in China.
- Demand-side disruption due to lockdowns and closure of non-essential stores in Europe.
- Margin pressure due to a tough retail environment and weakened Sterling.
- Customer concentration risk.
Mitigation Strategies
- Effective management of supply chain disruptions by UK and China teams (minor impact on revenue).
- Implemented financial and operational measures to protect the business and conserve cash (e.g., suspending capital projects, discretionary expenditure, using government schemes).
- Strong cost control and improved gross margin due to changes in customer mix (e.g., increased online sales).
- Developing new customer relationships, particularly internationally.
- Growing online sales to diversify from traditional retailers.
- Investment in warehouse automation to meet increased online demand.
- Foreign exchange hedging policy to mitigate currency fluctuations.
Supply Chain Management
Supplier Audits: Approximately 90% of 'live' suppliers audited annually.
Responsible Procurement
- Adherence to ETI base code and Modern Slavery Act.
- Regular factory visits and interaction with local teams.
Climate-Related Risks & Opportunities
Sustainable Products & Innovation
- Cambridge Bamboo Sippy Mugs
- Salter Earth Range
- Progress Rose Gold Range
Reporting Period: 2022-02 to 2022-01
Environmental Metrics
ESG Focus Areas
- Community engagement
- Responsible employment
- Corporate governance
- Net Zero
Social Achievements
- Support for food banks, NHS, domestic abuse survivors, and young carers during the pandemic.
- Regular colleague engagement, ongoing training and mentoring, support for colleague-led measures (Mental Health Committee).
- £1.6m investment in a new head office workspace.
Governance Achievements
- Full compliance with the UK Corporate Governance Code.
- Establishment of an ESG Committee.
Climate Goals & Targets
Long-term Goals:
- Net Zero targets and deadlines to be set out in FY 22 Annual Report.
Medium-term Goals:
- Target 30% of overall revenue from online.
Environmental Challenges
- Global shipping crisis causing increased shipping costs and downward pressure on gross margins.
- Tighter stock availability due to shipping disruptions affecting online sales.
- Travel restrictions impacting account management of certain European discounters.
Mitigation Strategies
- Actions to offset increased shipping costs (increasing prices, changing product mix, developing new products).
- Rebuilding stock position after being artificially depressed during previous years.
- Improved stock availability expected as shipping disruption eases.