Treatt plc
Climate Impact & Sustainability Data (2022, 2023)
Reporting Period: 2022
Environmental Metrics
Total Carbon Emissions:67,390 tCO2e/year
Scope 1 Emissions:1,977 tCO2e/year
Scope 2 Emissions:2,569 tCO2e/year (location-based)
Scope 3 Emissions:62,844 tCO2e/year
Renewable Energy Share:38%
Total Energy Consumption:16,318 MWh/year
Water Consumption:53,149 m3/year
Waste Generated:17,755 tons/year
Carbon Intensity:0.52 kg CO2e per kg of product shipped
ESG Focus Areas
- People
- Planet
- Performance
Environmental Achievements
- Increased renewable electricity share in the UK to 100% (38% of global electricity consumption)
- Collected Scope 3 emissions data for the first time
- Launched responsible sourcing policy
- Conducted energy audits at US and UK facilities and committed investment to optimize energy efficiency and reduce emissions
- 100% of UK waste diverted from landfill
Social Achievements
- Introduced a new labour and human rights policy
- Increased staff training hours to 7,205 (2021: 5,508)
- 72% of permanent Group employees are shareholders
- Continued to be a Living Wage Employer (UK)
- Launched a Treatt-wide walking group
Governance Achievements
- Enhanced Board with the addition of Christine Sisler and Philip O’Connor
- Introduced a new Directors’ Remuneration Policy
- Established a TCFD working group
Climate Goals & Targets
Long-term Goals:
- Achieve net zero emissions
Medium-term Goals:
- Set science-based targets
- Achieve 15-20% adjusted net operating margin
- Achieve 20-25% ROACE
Short-term Goals:
- Reduce absolute Scope 1 & 2 emissions in US facility by 10% by 2025
Environmental Challenges
- Lower than anticipated hard tea sales in the US impacting margins
- Adverse impact of increasing volatility in FX movements
- China subsidiary impacted by extended COVID-19 related restrictions
- Input cost inflation
Mitigation Strategies
- Implemented selected price increases to offset higher commodity prices
- Corrected over-hedged FX contracts and implemented new FX management systems
- Proactive purchasing to protect customers from global supply chain issues
- Developed alternative sourcing strategies
Supply Chain Management
Supplier Audits: 46% of suppliers SEDEX registered; 27% audited by SMETA
Responsible Procurement
- Responsible and Sustainable Sourcing Policy
- Supplier Code of Conduct
- SEDEX membership
Climate-Related Risks & Opportunities
Physical Risks
- Extreme heat
- Water stress
- Wildfires
- Hurricanes
- Flooding
Transition Risks
- Carbon pricing
- Regulatory changes
Opportunities
- Improved energy/water/waste efficiency
- Climate resilience in supply chain
- Attractive funding opportunities
- Third-party certifications
Reporting Standards
Frameworks Used: GRI Sustainability Reporting Standards 2016, TCFD
Certifications: Rainforest Alliance Supply Chain
Third-party Assurance: BDO LLP
UN Sustainable Development Goals
- Not disclosed
Sustainable Products & Innovation
- Sugar reduction products
- Products using natural extracts
Reporting Period: 2023
Environmental Metrics
Total Carbon Emissions:4,490 tCO2e/year (Scope 1 & 2, location-based)
Scope 1 Emissions:431 (UK) + 1,805 (USA) tCO2e/year
Scope 2 Emissions:611 (UK, location-based) + 1,643 (USA, location-based) tCO2e/year
Scope 3 Emissions:63,957 tCO2e/year (estimated)
Renewable Energy Share:40% (of global electricity consumption)
Total Energy Consumption:17,804 MWh/year
Water Consumption:17,943 m3/year (consumed)
Waste Generated:19,410 tons/year
Carbon Intensity:0.61 kg CO2e per kg of product shipped (2023)
ESG Focus Areas
- People
- Planet
- Performance
Environmental Achievements
- Reduced Scope 1 and 2 CO2 emissions (although specific figures are not consistently provided across the report and some increases are noted in specific areas)
- 89% of waste reduced, reused, or recycled
- 100% renewable electricity in the UK (40% of global electricity consumption)
- Tree planting to mitigate business travel emissions
Social Achievements
- Launched refreshed values and behaviours with accompanying initiatives
- Established an ED&I Allies Network
- Living Wage Employer (UK)
- Volunteering hours added to corporate giving strategy
- Cost of living payment support for colleagues
Governance Achievements
- Established an ESG Board Advisory Panel
- 20% of Executive Director bonus scheme linked to ESG objectives
Climate Goals & Targets
Long-term Goals:
- 90% reduction in Scope 1, 2, and 3 emissions by 2050 or earlier
Medium-term Goals:
- Reduce total Scope 1 and 2 emissions by 42% by 2030
Short-term Goals:
- Reduce Scope 1 and 2 emissions by 10% at Treatt USA by 2025
- 100% of top ten citrus suppliers to have a water stress management plan by 2025
Environmental Challenges
- Customer destocking in H2 due to interest rate rises
- Raw material inflation, particularly in citrus
- Water stress at manufacturing operations
- Citrus sourcing and supply chain disruptions due to extreme weather
- Energy and carbon pricing across the value chain
- Customer procurement preferences for low-carbon products
- Geopolitical and macroeconomic uncertainties impacting supply chain and inflation
- Loss of critical employees
Mitigation Strategies
- Successful pricing actions to offset raw material inflation
- Cost discipline measures
- Diverse geographical sourcing of raw materials
- Supporting regenerative agriculture
- Net zero pathway aligned to SBTi methodology
- Engagement with suppliers on responsible and sustainable sourcing
- Customer engagement to understand sustainability requirements
- Contingency plans for supply chain disruptions
- Alternative sourcing strategies
- Enhanced employee experience and succession planning
- Flexible work practices
Supply Chain Management
Supplier Audits: 51% of suppliers SEDEX registered, 38% with SMETA 4-pillar audits
Responsible Procurement
- Responsible and sustainable sourcing policy
- Supplier code of conduct
- SEDEX membership
- CIPS membership for procurement team
Climate-Related Risks & Opportunities
Physical Risks
- Water stress
- Extreme weather impacting citrus supply
Transition Risks
- Energy and carbon pricing
- Customer demand for low-carbon products
Opportunities
- Improving supply chain sustainability
- Investing in on-site renewable energy
Reporting Standards
Frameworks Used: GRI Sustainability Reporting Standards 2016, SASB, TCFD
Certifications: BRCGS global standard for food safety (AA grades), Rainforest Alliance Supply Chain certification (USA facility), EcoVadis Silver standard, SEDEX
Third-party Assurance: BDO LLP
UN Sustainable Development Goals
- 7 (Affordable and Clean Energy)
- 12 (Responsible Consumption and Production)
- 13 (Climate Action)
- 8 (Decent Work and Economic Growth)
- 17 (Partnerships for the Goals)
Initiatives aligned with SDGs through various programs and targets
Sustainable Products & Innovation
- Sugar reduction products
- Coffee extracts