Climate Change Data

Scott Technology Limited

Climate Impact & Sustainability Data (2023-09-01 to 2024-08-31)

Reporting Period: 2023-09-01 to 2024-08-31

Environmental Metrics

Total Carbon Emissions:1807.15 tCO2e/year
Scope 1 Emissions:1047 tCO2e/year
Scope 2 Emissions:760 tCO2e/year
Carbon Intensity:6.55 tCO2e per $M revenue

ESG Focus Areas

  • governance
  • climate change
  • sustainable procurement
  • greenhouse gas (GHG) emissions
  • product innovation
  • storytelling and communication
  • employee retention and engagement
  • safety and wellbeing
  • diversity and inclusion
  • customer experience

Environmental Achievements

  • Reduced Scope 1 and 2 emissions to 1807.15 tonnes CO2e in FY24 from 1811 tonnes in FY22 (a slight decrease, not meeting the 30% reduction target yet).

Social Achievements

  • Achieved zero lost time injuries (LTIs) in FY24.
  • Launched Scott Technology Women in Engineering Scholarship.
  • Achieved 50/50 gender leadership balance in Scott's China office.

Governance Achievements

  • Established a Sustainability Committee to oversee ESG objectives.
  • Integrated ESG and climate-related performance KPIs into Executive Management Team's Short-Term Incentive plans (STI).

Climate Goals & Targets

Short-term Goals:
  • Reduce Scope 1 and 2 absolute emissions by 30% by FY30 (against a FY22 baseline).

Environmental Challenges

  • Incomplete Scope 3 emissions data due to challenges with data collection and methodologies.
  • Increased energy costs in Europe and Australia.
  • New climate-related legislation increasing the cost of doing business.
  • Supply chain disruptions due to severe weather events (although not materially impacting Scott in FY24).
  • Potential for changing consumer habits moving away from high-emission industries.
  • Increased access to raw materials due to protectionist policies and increased demand.
  • Increased variance in global regulations.
  • Increased prevalence of carbon border adjustments and emissions reporting/traceability.
  • Increase in tariffs.
  • Increased cost and access to insurance due to frequent weather events.
  • Difficulty in raising funding due to changing investor preferences.
  • Instability in the mining industry due to changing demand.
  • Increased litigation against directors and officers.
  • Increased requirements for reporting and compliance.
  • Impacts on the global freight system.
Mitigation Strategies
  • Prioritizing Scope 1 and 2 emissions reduction for immediate action.
  • Addressing Scope 3 emissions measurement gaps in FY25.
  • Investigating transitioning Australian forklifts to electric and on-site solar energy generation.
  • Exploring alternate transport routes and reassessing operational locations.
  • Robust control measures and policies for safe working conditions in extreme temperatures.
  • Monitoring protein sector and exploring alternative opportunities.
  • Investing in inventory levels to ensure supply security.
  • Monitoring key markets for regulatory divergence and adapting strategy.
  • Robust risk management framework and regular review of risk register.
  • Ensuring directors are educated and insured.
  • Ensuring reporting process is robust and educating key staff.
  • Optimising inventory levels to mitigate supply chain disruptions.
  • Monitoring mining sector and exploring alternative opportunities.

Supply Chain Management

Responsible Procurement
  • Prioritising sustainable and responsible suppliers.

Climate-Related Risks & Opportunities

Physical Risks
  • Severe weather events impacting transport and logistics.
  • Extreme temperatures impacting workforce efficiency.
Transition Risks
  • Changing consumer habits away from high-emission industries.
  • Increased access to raw materials due to protectionist policies.
  • Increased variance in global regulations.
  • Carbon border taxes/adjustments.
  • Increase in tariffs.
  • Increased cost and access to insurance.
  • Difficulty in raising funding.
  • Instability in the mining industry.
  • Increased litigation against directors and officers.
  • Increased reporting and compliance requirements.
  • Impacts on the global freight system.
Opportunities
  • Growth in mining sector due to increased demand for minerals.
  • Opportunity to change business model to reduce travel and freight.
  • Transition from red meat to alternative consumption.
  • Drive for low-carbon mining.
  • Leveraging Scott's IP into new sectors.
  • Access to funding and government incentives.

Reporting Standards

Frameworks Used: Aotearoa New Zealand Climate Standards NZ CS 1-3, NGFS framework

Certifications: ISO 45001

Third-party Assurance: McHugh & Shaw Ltd (NZ, Australia, China and USA) and Vincotte (Europe) - Reasonable level of Assurance for regional divisions; Group inventory not assured.