Climate Change Data

Scapa Group plc

Climate Impact & Sustainability Data (2015, 2017, 2018, 2019, 2020)

Reporting Period: 2015

Environmental Metrics

Total Carbon Emissions:32,122 tCO2e/year
Scope 1 Emissions:13,407 tCO2e/year
Scope 2 Emissions:18,715 tCO2e/year
Carbon Intensity:136 tCO2e per £m revenue

ESG Focus Areas

  • Environmental, Health & Safety
  • Employee well-being
  • Community Investment
  • Supply Chain Corporate Responsibility
  • Board Diversity

Environmental Achievements

  • Achieved one year and over without a Lost Time Accident at our Renfrew, Rorschach, Ghislarengo and Korea operations
  • Certified to ISO 14001 at our Ashton, Ghislarengo and Rorschach operations
  • Reduced Lost Time Accident Frequency Rate from 1.8 to 1.2

Social Achievements

  • Launched a new framework to develop a high performing workforce, including a new set of principles detailing expected employee behaviours
  • Launched a Group-wide campaign to communicate and engage all employees
  • Launched an online toolkit and training programme to assist managers in recruitment activity
  • Introduced a new global recognition scheme to reward employees demonstrating company guiding principles
  • Launched a new internship programme for Manchester Business School MBA students
  • Continued support for The Christie and other local charities

Governance Achievements

  • Strengthened the Board through the appointment of Martin Sawkins
  • Maintained compliance with the UK Corporate Governance Code
  • Delivered training on corporate governance to all employees of First Water Limited following its acquisition

Climate Goals & Targets

Short-term Goals:
  • Execute in full, capital and revenue improvement projects valued at £0.7m
  • Achieve certification to ISO 50001 at two sites
  • Achieve certification to OSHAS 18001 at one site
  • Comply with the UK Energy Saving Opportunity Scheme (ESOS)
  • Reduce accident rate by a minimum of 25%
  • Improve the identification and closure of safety improvement opportunities by 50%
  • Complete seven governance and compliance audits
  • Deliver site level SHIPs to a minimum of 97% adherence to plan

Environmental Challenges

  • Continuing negative macroeconomic conditions and currency movements
  • Difficult market conditions in Asia
  • Uncertainty in the European market
  • Downturn in oil prices resulting in postponement of energy projects
  • Failure to attract and retain people with the right virtues and talents
  • Failure to mitigate environmental impacts
  • Failure to ensure safe working practices
  • High raw material prices
  • Over-reliance on specific markets or customers
  • ICT systems and infrastructure failure
Mitigation Strategies
  • Investment in quality, marketing and sales
  • Acquisition of First Water Limited
  • Focused and customer-centric approach
  • Strategic pricing team
  • Global performance management system
  • Performance-related incentive schemes
  • Global Reward, Compensation and Benefits Manager recruited
  • Roll-out of talent and succession programme
  • Implementation and maintenance of environmental and energy management systems
  • Regular audits and work with external accredited agencies
  • Group and site-based business continuity and disaster recovery processes
  • Multi-site and remote device backup of electronic data
  • Fallover and standby solutions built into system architecture
  • Rigorous IT governance model

Supply Chain Management

Responsible Procurement
  • Human Rights policy
  • Code of Conduct
  • Sustainability approach
  • Risk-based approach for smaller suppliers

Climate-Related Risks & Opportunities

Awards & Recognition

  • Dedicated to The Christie Silver Award

Reporting Period: 2017

Environmental Metrics

Total Carbon Emissions:31,923 tCO2e/year
Scope 1 Emissions:13,008 tCO2e/year
Scope 2 Emissions:18,915 tCO2e/year

ESG Focus Areas

  • Talent Management
  • Diversity & Inclusion
  • Community Investment
  • Environmental, Health & Safety (EHS)
  • Supply Chain Responsibility

Environmental Achievements

  • 37.5% reduction in Lost Time Injury Frequency Rate
  • Improved energy utilization by 9%
  • Completed installation of LED lighting at Dunstable and Ashton locations

Social Achievements

  • Launched HR Connect employee database
  • Launched Scapa Academy online learning platform
  • 100% Code of Conduct training completion
  • Over 2,500 hours of training completed
  • Increased management population assessment coverage to 12%
  • Launched Living our Guiding Principles recognition scheme
  • Community engagement initiatives in Knoxville, Ramsbury, and Renfrew

Governance Achievements

  • Full compliance with UK Corporate Governance Code
  • Internal review of Board effectiveness
  • Annual re-election of all Directors
  • Revised Directors’ Remuneration Policy submitted for shareholder approval

Climate Goals & Targets

Medium-term Goals:
  • Extend OSHAS 18001 certification to Ashton, Dunstable, and Renfrew
Short-term Goals:
  • Execute capital and revenue improvement projects valued at £0.3m
  • Achieve ISO 50001 certification at Ghislarengo and Renfrew
  • Achieve OSHAS 18001 certification at Scapa Group and Head Office
  • Reduce accident rate by a minimum of 25%

Environmental Challenges

  • Global economic and political uncertainty
  • Over-reliance on specific customers or markets
  • Excessively high raw material prices
  • Failure to attract and retain talent
  • ICT systems and infrastructure failure
  • Products not meeting quality and safety standards
  • Failure to ensure safe working practices
  • Failure to mitigate environmental impact
  • Pension liabilities
Mitigation Strategies
  • Geographic diversity
  • Diverse customer base, long-term contracts
  • Global supply chain function, cost reduction targets, material substitution
  • Global performance management system, talent development programs
  • Business continuity and disaster recovery processes, robust IT governance
  • ISO 9001, TS 16949, ISO 13485, ISO 14001 certifications, recall insurance
  • Safety management system, Stop, Think & Ask program
  • ISO 14001 certifications, environmental management systems
  • Active liability management program, exploring ways to manage deficit

Supply Chain Management

Responsible Procurement
  • S.P.I.R.E. (Supplier Performance Improvement & Requirements Evaluation) program
  • Detailed due diligence and supplier certification

Climate-Related Risks & Opportunities

Reporting Period: 2018

Environmental Metrics

Total Carbon Emissions:31,730 tCO2e/year
Scope 1 Emissions:12,984 tCO2e/year
Scope 2 Emissions:18,746 tCO2e/year
Carbon Intensity:109 tCO2e per £m revenue

ESG Focus Areas

  • Employee Development
  • Health and Safety
  • Environmental Stewardship
  • Supply Chain Responsibility
  • Diversity and Inclusion

Environmental Achievements

  • Improved energy utilization by 2.8%
  • Invested over £180,000 in EHS improvements, with plans for a further £200,000 over the next 18 months
  • Maintained Lost Time Accident Frequency Rate

Social Achievements

  • 100% of employees trained in the Code of Conduct
  • 100% completion of performance management records
  • 335 hours of diversity training for managers globally
  • 2,000 hours of training delivered during the year
  • Launched a new See, Stop, Think & Ask Programme
  • Three locations achieved greater than one year without a Lost Time Accident
  • £3,000 raised for charity 'Kids In Action' with company matching donations
  • Renfrew team supports Renfrew Victoria Hospital Foundation, exceeding fundraising targets

Governance Achievements

  • Annual internal review of Board effectiveness conducted
  • Two new Non-Executive Directors appointed
  • 100% compliance with the UK Corporate Governance Code
  • Internal review of Board effectiveness conducted

Climate Goals & Targets

Medium-term Goals:
  • Improve Healthcare margin towards 20%
  • Improve Industrial margin towards 15%

Environmental Challenges

  • Fatal accident at Dunstable site
  • Maintaining high standards of health, safety and welfare of employees
  • Pressure to deliver high-quality products more efficiently in the healthcare industry
  • Highly fragmented and inefficient pressure sensitive materials market in Industrial sector
  • Status quo and conservatism of customers in Healthcare
  • Sufficiency expectations in Industrial market
Mitigation Strategies
  • Assisting the Health & Safety Executive (HSE) to fully investigate the incident
  • Focus on talent development and succession planning
  • Strengthening value chain and deepening strategic engagement with global customers
  • Self-help measures to optimize footprint and reshape cost to serve customer base
  • Acquisitions to complement current business or deliver new strategic platform
  • Technology transfers to subsume customers' assets and technologies
  • Investing in capacity and organization to deliver on Healthcare growth strategy

Supply Chain Management

Responsible Procurement
  • S.P.I.R.E. (Supplier Performance Improvement & Requirements Evaluation) program

Climate-Related Risks & Opportunities

Awards & Recognition

  • CEO Awards

Reporting Period: 2019

Environmental Metrics

Total Carbon Emissions:31,432 tCO2e/year
Scope 1 Emissions:12,765 tCO2e/year
Scope 2 Emissions:18,667 tCO2e/year
Carbon Intensity:101 tCO2e per £m revenue

ESG Focus Areas

  • Employee Engagement
  • Health, Safety and Environmental (HSE)
  • Supply Chain Corporate Responsibility
  • Human Rights

Environmental Achievements

  • Reduced lost time accident frequency rate to 0.63 from 0.97 (35% reduction)
  • Improved energy utilization by 5.8%
  • Reduction in carbon emissions per £m revenue by 7.3%

Social Achievements

  • Launched first Global Engagement Survey with 57% response rate
  • 100% employee completion of Code of Conduct training
  • Increased number of employees benefiting from online performance management system by 26%
  • 188 employees recognized using ‘Living our Guiding Principles’ recognition scheme

Governance Achievements

  • Strengthened the Board with the appointment of a new CFO and three new Directors
  • Conducted an external review of the Board’s effectiveness
  • Implemented a new Long Term Incentive Plan (2019 LTIP)

Climate Goals & Targets

Medium-term Goals:
  • Industrial business to achieve 15.0% profit margin
  • Healthcare trading profit margin towards 20%

Environmental Challenges

  • Adverse macro conditions impacting Industrial revenue
  • Temporary delays in Healthcare product launches
  • Operational issues experienced by some key customers
  • Shutdown of a third-party sterilizer in the UK
  • Integration challenges with Markel acquisition
Mitigation Strategies
  • Focus on margin improvement and cash generation in Industrial
  • Investment in BioMed Laboratories capabilities
  • Operational footprint consolidation programme
  • Continued focus on integration of Markel into Windsor, US
  • Technology transfer of Gargrave, UK, facility

Supply Chain Management

Supplier Audits: Rolling programme of key supplier audits

Responsible Procurement
  • Supplier Performance Improvement and Requirements Evaluation (SPIRE) initiative

Climate-Related Risks & Opportunities

Awards & Recognition

  • CEO Awards

Reporting Period: 2020

Environmental Metrics

Total Carbon Emissions:32,156 tCO2e/year
Scope 1 Emissions:21,446 tCO2e/year
Scope 2 Emissions:10,710 tCO2e/year
Carbon Intensity:100 tonnes of CO2e per £m revenue

ESG Focus Areas

  • Employee engagement
  • Community investment
  • Environmental stewardship
  • Supply chain responsibility
  • Human rights

Environmental Achievements

  • Reduced carbon emissions per £m of revenue to 100 tonnes of CO2e (from 101 in 2019)
  • Improved Lost Time Accident Frequency Rate to 0.27 from 0.63 per 200,000 hours worked (57% reduction)

Social Achievements

  • Launched Scapa World, an employee newsletter
  • Implemented CEO Town Hall programme for increased employee engagement
  • Supported various local community initiatives (e.g., vegetable garden, Habitat for Humanity, toy appeal)
  • Donated to Renfrew Victoria Hospital ($300,000 total contribution)
  • Implemented Telehealth program for employees in the US
  • Offered online wellbeing sessions for employees working from home

Governance Achievements

  • Appointed Dr Tim Miller as Designated Non-Executive Director for Employee Engagement
  • Undertook an internal Board evaluation
  • Improved internal communication practices

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Expand Healthcare beyond skin technology (surgical, transdermal, pain management)
  • Shift Industrial commercial model to a regionalised structure
Short-term Goals:
  • Implement all COVID-19 action plan items
  • Focus on Healthcare profitability through cost structure optimization and growth
  • Focus on Industrial self-help agenda to improve margin and cash positions

Environmental Challenges

  • Loss of ConvaTec contract
  • Adverse macro-economic environment (particularly in Automotive and Specialty segments)
  • COVID-19 pandemic impact on revenue and operations
  • Need to improve profitability margins
Mitigation Strategies
  • Consolidated Healthcare facilities (Inglewood into Knoxville, Dunstable into Gargrave)
  • Technology transfers from major healthcare customers
  • Equity raise (£32.6m)
  • Debt renegotiation
  • Cost expenditure streamlining
  • Reduced capital and working capital
  • Leveraged government schemes for liquidity benefits
  • Focus on Return on Capital Employed in Industrial segment

Supply Chain Management

Supplier Audits: Rolling programme of key supplier audits

Responsible Procurement
  • Balancing economical requirements with environmental, social and ethical considerations
  • Supplier Performance Improvement and Requirements Evaluation (SPIRE) initiative

Climate-Related Risks & Opportunities