Climate Change Data

Solid State plc

Climate Impact & Sustainability Data (2022-04-01 to 2023-03-31, 2024)

Reporting Period: 2022-04-01 to 2023-03-31

Environmental Metrics

ESG Focus Areas

  • Net-Zero emissions by 2050
  • Governance framework
  • Minimising environmental impact
  • Maximising stakeholder value

Environmental Achievements

  • Established an ESG committee focused on developing an ESG strategy to achieve Net-Zero in Scope 1 and Scope 2 emissions by 2050
  • Technology, products and systems are designed and engineered to be high quality, often upgradable with long life

Social Achievements

  • Investment in HR with key initiatives & activities incorporated into the Group’s people and talent development plans
  • Paid a one-off energy bonus and awarded an interim pay increase to support employees during the energy crisis and increased cost of living

Governance Achievements

  • Established an ESG committee
  • Advanced stage in recruitment of an additional independent non-executive Director

Climate Goals & Targets

Long-term Goals:
  • Achieve Net-Zero in Scope 1 and Scope 2 emissions by 2050
Medium-term Goals:
  • Maintain compound annual growth in total shareholder return in excess of 20% to 2030

Environmental Challenges

  • Component shortages
  • Inflationary pressures
  • Volatile exchange rates
  • Supply chain disruptions
  • Higher interest rates
  • Potential for an unwinding of customer stock holdings
Mitigation Strategies
  • Pro-actively engaging customers to manage supply chains
  • Investing in inventory in partnership with customers
  • Managing investment in inventory to support order fulfilment and supply chain risk
  • Revised “stressed” forecasts taking account of results to date, current expected demand, and mitigating actions
  • Secured a $10m approved short-term working capital overdraft facility

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Period: 2024

Environmental Metrics

Total Carbon Emissions:253.45 tCO2e/year (UK and offshore) + 364.35 tCO2e/year (Global)
Scope 1 Emissions:129.76 tCO2e/year (UK and offshore) + 79.28 tCO2e/year (Global)
Scope 2 Emissions:123.69 tCO2e/year (UK and offshore) + 285.07 tCO2e/year (Global)
Total Energy Consumption:1,261,764 kWh/year (UK and offshore) + 1,269,977 kWh/year (Global)
Carbon Intensity:12.7 tonnes CO2e per £1m of added value

ESG Focus Areas

  • Environmental
  • Social
  • Governance

Environmental Achievements

  • 60% reduction in Scope 1 and Scope 2 emissions from 2020 in UK and offshore operations; overall baseline intensity ratio decreased from 20.9 tonnes in FY20 to 12.7 tonnes in FY24
  • Decommissioning of an energy-intensive production line in the US

Social Achievements

  • Established a wellbeing committee
  • Improved diversity in Board and leadership team
  • Enhanced community engagement supporting programs (schools VEX robotics competitions, Local Skills Improvement Plan)
  • Introduced an EV salary sacrifice scheme in the UK
  • Increased life assurance cover, holiday, and pension benefits

Governance Achievements

  • Welcomed Sam Smith as an Independent Non-Executive Director
  • Formed the Group Executive Board
  • Developed and enhanced Group policies and procedures in accordance with the updated 2023 QCA code

Climate Goals & Targets

Long-term Goals:
  • Achieve net zero in Scope 1 and 2 emissions by 2050
Medium-term Goals:
  • All new company vehicles to be battery-powered
  • Maintain circa 20% compound annual growth in Total Shareholder Return
  • Enhance operating margins to 12% by 2030
  • Develop counterweight markets to Defence & Security, especially in Medical Technology
Short-term Goals:
  • Minimise CO2e from electricity, gas, company vehicles, and air freight
  • Switch to electric heating by 2040 if no low-carbon alternative for gas is available

Environmental Challenges

  • Marginal increase in Scope 1 and 2 emissions in 2024 due to grid being 9% less green than in 2023
  • Achieving net zero from freighting goods
  • Capturing data from work from home, business miles in private vehicles, and freighting goods to fully understand carbon footprint
  • Slowdown in industrial and rail sectors
  • Challenging sectors in developing a diverse workforce
Mitigation Strategies
  • Minimising CO2e from electricity, gas, company vehicles, and air freight
  • Transitioning to low-carbon hybrid or electric cars
  • Increasing use of sea freight
  • Investing in talent and developing leadership teams
  • Focusing on attracting and retaining talent to improve diversity
  • Establishing a working group to support employees

Supply Chain Management

Responsible Procurement
  • Working with supply chain partners to achieve net zero in scope 1&2 by 2050

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: QCA Code

Certifications: AS9100D, AS9120, ISO13485, ISO45001, ISO14001

Third-party Assurance: RSM UK Audit LLP

UN Sustainable Development Goals

  • Goal 7 (Affordable and Clean Energy)
  • Goal 9 (Industry, Innovation, and Infrastructure)
  • Goal 13 (Climate Action)