Climate Change Data

RS Group plc

Climate Impact & Sustainability Data (2021-04 to 2022-03, 2022-04 to 2023-03, 2023)

Reporting Period: 2021-04 to 2022-03

Environmental Metrics

Scope 1 Emissions:4,600 tCO2e/year
Scope 2 Emissions:1,400 tCO2e/year (market-based)
Scope 3 Emissions:2,200,000 tCO2e/year (estimated)
Renewable Energy Share:88% of total electricity use
Total Energy Consumption:47,400 MWh/year
Water Consumption:31800 m3/year
Waste Generated:3500 tons/year
Carbon Intensity:2.3 tCO2e per £1,000 revenue

ESG Focus Areas

  • Climate Change

Environmental Achievements

  • Reduced carbon intensity of direct operations by 69% by 2021/22 from a 2017/18 baseline (target was 50% reduction by 2024/25)
  • 88% of Group electricity usage from renewable sources in 2021/22
  • Reduced Scope 3 transport emissions intensity (tonnes of CO2e per tonne of product sold) by 17% between 2019/20 to 2021/22

Social Achievements

  • Introduced a climate-linked KPI to the annual incentive programme for c. 40% of all Group employees in 2022/23

Governance Achievements

  • Established a robust process to identify, define, assess and mitigate substantive risks resulting from climate change
  • Amended £300 million revolving credit facility to link with climate-related actions

Climate Goals & Targets

Long-term Goals:
  • Net zero emissions in direct operations by 2030
  • Net zero emissions in wider value chain by 2050
Medium-term Goals:
  • Packaging made with 50% recycled content by 2030
  • 100% of packaging widely reusable, recyclable or compostable by 2030
  • Reduce waste intensity by 50% by 2030
  • Achieve zero waste to landfill in direct operations by 2030
  • Recycle > 95% of waste by 2030
  • Reduce Scope 3 transport emissions by 25% per tonne of product sold by 2029/30
Short-term Goals:
  • Reduce Scope 1 and 2 emissions by 75% from 2019/20 to 2029/30
  • Reduce packaging intensity by 30% by 2030
  • Increase the range of sustainable products and service solutions

Environmental Challenges

  • Acute physical risks from severe weather events (storms, cyclones, flooding) potentially damaging DCs
  • Chronic physical risks from extreme heat impacting worker productivity
  • Transition risks from decarbonization of the logistics network increasing transportation costs
  • Market risks from changing customer behavior and reduced demand for certain products
Mitigation Strategies
  • Strong property development, maintenance, and loss prevention programme; robust business continuity plans; full insurance coverage
  • Investment in high-efficiency air conditioning systems
  • Restructuring supply chain to a local and regional model; switching transport modes from air to surface or sea transport
  • Developing innovative and sustainable product and service solutions; proactively increasing range of products and service solutions that enable customers to reduce environmental impacts

Supply Chain Management

Responsible Procurement
  • Ethical Trading Policy; supplier sustainability requirements; Science Based Targets

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme heat
  • Severe weather events
Transition Risks
  • Decarbonization of logistics network
  • Changing customer demand
Opportunities
  • Growth in sustainable products and services; more sustainable distribution model

Reporting Standards

Frameworks Used: TCFD, GRI, Greenhouse Gas Protocol

Certifications: ISO 14064-1, CEMARS (UK business)

Third-party Assurance: ERM CVS

Sustainable Products & Innovation

  • RS Industria™
  • RS PRO recycled PLA 3D printer filament
  • Sustainable product flag on website

Reporting Period: 2022-04 to 2023-03

Environmental Metrics

Total Carbon Emissions:5000 tCO2e/year (2022/23)
Scope 1 Emissions:4557 tCO2e/year (2022/23)
Scope 2 Emissions:479 tCO2e/year (2022/23)
Scope 3 Emissions:2,220,300 tCO2e/year (2022/23)
Renewable Energy Share:92%
Total Energy Consumption:42,800 MWh/year (2022/23)
Water Consumption:34,800 m3/year (2022/23)
Waste Generated:3850 tons/year (2022/23)
Carbon Intensity:1.7 tCO2e/£m revenue (2022/23)

ESG Focus Areas

  • Advancing Sustainability
  • Championing Education and Innovation
  • Empowering our People
  • Doing Business Responsibly

Environmental Achievements

  • 58% reduction in Scope 1 and 2 emissions since 2019/20
  • 92% of Group electricity from renewable sources
  • 28% reduction in Scope 3 transport emissions intensity since 2019/20
  • Reduced total energy usage by 12% and energy intensity by 20% from 2021/22
  • Launched Better World products

Social Achievements

  • 78 employee engagement score (up from 75 in 2021/22)
  • 1.3m members, students and start-ups engaged through DesignSpark
  • 28k lives improved since 2019/20 through support of The Washing Machine Project
  • 471,000 young engineers and innovators supported through global education program

Governance Achievements

  • 50% of suppliers by spend have an EcoVadis membership
  • 25% of suppliers by spend have set science-based targets (SBTs)
  • Platinum EcoVadis rating in 2022
  • £400m sustainability-linked loan (SLL)

Climate Goals & Targets

Long-term Goals:
  • Net zero emissions across value chain by 2050
Medium-term Goals:
  • Achieve net zero emissions in direct operations by 2030
  • Reduce Scope 3 transport emissions by 25% per tonne of product sold by 2030
  • Offer 100,000 Better World products by 2024/25
  • 40% women and 25% ethnically diverse leaders by 2030
Short-term Goals:
  • Reduce water consumption by 10% by 2025 (implied)
  • Engage 67% of suppliers by spend to set SBTs by 2025

Environmental Challenges

  • Scope 3 carbon emissions related to products and logistics footprint
  • Increasing the number of female and ethnically diverse talent into leadership positions
  • Challenges in decarbonising buildings in regions with limited renewable energy infrastructure
  • Availability of low carbon logistics technologies
  • Suppliers still at early stages of their ESG journeys
Mitigation Strategies
  • Collaborating with suppliers and customers to create change and reach net zero by 2050
  • Focusing on diverse talent in succession planning and hiring processes
  • £3.7 million investment in decarbonising Beauvais, France DC
  • Installing solar panels and heat pumps
  • Engaging with suppliers and supporting them in their ESG journeys
  • Developing new service solutions to help customers reduce energy and carbon emissions
  • Offering an increasing range of sustainable product and service solutions

Supply Chain Management

Supplier Audits: 143 inspections of RS PRO Asia suppliers (since May 2019)

Responsible Procurement
  • Ethical Trading Policy Declaration
  • Supplier questionnaire with key ESG requirements
  • ESG Supplier Handbook

Climate-Related Risks & Opportunities

Physical Risks
  • Not disclosed
Transition Risks
  • Regulatory changes
  • Market shifts
Opportunities
  • Development of energy-efficient products
  • Growth in low carbon industries

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UNGC

Certifications: ISO 14001, ISO 45001

Third-party Assurance: ERM Certification and Verification Services Limited (ERM CVS)

UN Sustainable Development Goals

  • 7
  • 9
  • 12
  • 13
  • 17

Initiatives contribute to these goals through sustainable operations, education, innovation, responsible supply chains, and partnerships

Sustainable Products & Innovation

  • Better World product range
  • Energy saving products
  • LED lighting
  • Cable for electric vehicle charging points

Awards & Recognition

  • Platinum EcoVadis rating
  • AA MSCI ESG rating
  • Constituent of DJSI Europe
  • Educational Support Award at Elektra Awards 2022

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:5,000 tCO2e/year
Scope 1 Emissions:4,557 tCO2e/year
Scope 2 Emissions:479 tCO2e/year
Scope 3 Emissions:1,948,200 tCO2e/year
Renewable Energy Share:92%
Carbon Intensity:1.7 tonnes CO2e/£m revenue

ESG Focus Areas

  • Advancing sustainability
  • Championing education and innovation
  • Empowering our people
  • Doing business responsibly

Environmental Achievements

  • 58% reduction in Scope 1 and 2 emissions since 2019/20
  • 92% of Group electricity is from renewable sources
  • 28% reduction in Scope 3 transport emissions intensity since 2019/20

Social Achievements

  • 1.3m members, students and start-ups engaged through DesignSpark
  • 28k lives improved since 2019/20 through our support of The Washing Machine Project (TWMP)
  • 78 employee engagement score

Governance Achievements

  • 50% of suppliers by spend have an EcoVadis membership to drive ESG performance
  • 25% of suppliers by spend have set science-based targets (SBTs) with the Science Based Targets initiative (SBTi)
  • Established ESG solutions function

Climate Goals & Targets

Long-term Goals:
  • Net zero emissions by 2050
Medium-term Goals:
  • Achieve 100% renewable energy by 2030
  • Reduce Scope 3 transport emissions by 25% per tonne of product sold by 2029/30
Short-term Goals:
  • Reduce water consumption by 100,000 litres per day for one customer

Environmental Challenges

  • Cost pressures (labour, technology, freight, energy)
  • Talent acquisition and retention
  • Macroeconomic environment impacting demand
  • Supply chain disruptions
  • Climate change (physical and transition risks)
Mitigation Strategies
  • Ad hoc payments to employees
  • Updated employee benefits programmes
  • Focus on higher-value customers
  • Investing in operating model (branding, digital, technology)
  • Supply chain optimization (local sourcing, lower-carbon transport)
  • Net zero plan and science-based targets
  • ESG solutions for customers
  • Supplier ESG engagement

Supply Chain Management

Supplier Audits: 143 inspections of RS PRO Asia suppliers

Responsible Procurement
  • Ethical trading declaration
  • ESG supplier handbook
  • EcoVadis and Sedex memberships
  • SBTs

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather
  • Extreme heat impacting DCs
Transition Risks
  • Changes in market demand
  • Increased logistics costs due to decarbonization
Opportunities
  • Growth in low-carbon customer segments
  • Reduced emissions and energy costs from solar panels

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UNGC

Certifications: ISO 14001, ISO 45001

Third-party Assurance: ERM CVS

UN Sustainable Development Goals

  • Goal 7 (Affordable and Clean Energy)
  • Goal 9 (Industry, Innovation, and Infrastructure)
  • Goal 12 (Responsible Consumption and Production)
  • Goal 13 (Climate Action)
  • Goal 5 (Gender Equality)
  • Goal 17 (Partnerships for the Goals)

Initiatives contribute to these goals through sustainable operations, product and service solutions, education, and community engagement.

Sustainable Products & Innovation

  • Better World product range
  • RS Industria®

Awards & Recognition

  • MSCI AA rating
  • Inclusion in DJSI Europe
  • ICAEW Corporate Development Award 2023