Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainability

Environmental Achievements

• 43% of retailers adopted science-based emissions reduction targets
• 54% of retailers are sourcing closer to home to reduce carbon emissions
• 48% are encouraging the use of click-and-collect to reduce delivery-related emissions
• Other measures include stricter auditing rules (46%), more frequent audits (44%), switching to electric fleets (35%) and taking ownership of factories (29%)

Social Achievements

• 25% of retailers appointed an in-house sustainability team
• More than half (53%) of retailers are helping customers to be more sustainable in their own homes, for example by offering advice or inspiration (32%), collaborating with other organisations (18%) and creating new tools for customers to use (17%)
• 13% have created a new line of sustainable products
• a fifth (19%) of fashion, 13% of lifestyle and leisure and 8% of home retailers have launched a rental or resale service

Governance Achievements

• Increased focus on preventing greenwashing and complying with CMA regulations

Climate Goals & Targets

Environmental Challenges

• Balancing long-term sustainability goals with the everyday realities of running a business
• Supply chain disruptions and staff shortages
• Customer misunderstanding of sustainability claims (73%)
• Competing priorities (45%) in preventing greenwashing
• Time constraints (39%) in implementing sustainability measures
• Lack of budget (33%) for sustainability initiatives
• Focus on profit over sustainability (77% of retailers admit their shareholders prioritize profits over sustainability)
• Lack of accepted benchmarks and definitions (27%)
• Lack of board-level support (19%)
• Lack of in-house skills (20%)
• Supply chain issues impacting sustainability strategy momentum (70%)

Mitigation Strategies

• Collaboration between all members of the retail ecosystem
• More strategic approach to sustainability (60% of retailers)
• Adoption of science-based emissions reduction targets (43%)
• Sourcing closer to home (54%)
• Encouraging click-and-collect (48%)
• Stricter auditing rules (46%)
• More frequent audits (44%)
• Switching to electric fleets (35%)
• Taking ownership of factories (29%)
• Creating new sustainable product lines (13%)
• Launching rental or resale services (19% in fashion, 13% in lifestyle and leisure, 8% in home)
• Helping customers be more sustainable (53%)
• Inclusion of sustainability credentials in due diligence on new suppliers (52% all the time, 35% often)
• Inclusion of sustainability obligations in contracts with third parties (48%)

Supply Chain Management

Responsible Procurement

• Inclusion of sustainability credentials in due diligence (52% all the time, 35% often)
• Inclusion of sustainability obligations in contracts (48%)
• Sourcing closer to home (54%)

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• New line of sustainable products (13%)
• Rental or resale services (19% fashion, 13% lifestyle & leisure, 8% home)

Environmental Metrics

ESG Focus Areas

• Equality, diversity and inclusion
• Mental health and wellbeing
• Environmental sustainability

Environmental Achievements

• 100% switch to renewable energy across all offices
• Improved GHG emissions data collection and calculation methodology
• Science-based targets validated by SBTi; received a Climate Change ‘B’ score from CDP

Social Achievements

• Reached 33% female representation at partner level (2 years early)
• Introduced pregnancy loss policy and increased menopause support
• Launched two new employee networks (Social Mobility and Disability)
• Improved gender balance in partner hiring and promotions (women accounting for just over 50% of partner promotions and hires in the past three years)

Governance Achievements

• Implemented a new performance framework to support employees and create a psychologically safe environment
• Welcomed the SRA's new ‘fair treatment’ requirements
• Progress tracked at the most senior level of the firm (executive, governance & oversight and operations boards, risk & compliance committee and non-executive director)

Climate Goals & Targets

Environmental Challenges

• Significant changes to working environment post-Covid-19 pandemic
• National issue with mental wellbeing and its link to financial health
• Majority of TLT’s emissions come from Scope 3 sources (supply chain)

Mitigation Strategies

• Introduced TLT World flexible working approach
• Provided private medical insurance (PMI), employee assistance programme, virtual GP service, talking therapies, physiotherapy, and a firm-funded health cash care plan
• Improved data collection and calculations methodology to capture, measure and track progress to net-zero, both their own and that of their suppliers
• Partnered with other sustainability-minded organisations to share best practice and extend impact
• Considered the highest environmental standards for fitting out new offices and major renovations

Supply Chain Management

Responsible Procurement

• Switching to a more sustainable pensions provider

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Science Based Targets initiative (SBTi)