Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Sustainability

Environmental Achievements

• Reduced scope 1 and scope 2 carbon emissions by 20% to 12,518 tonnes CO2e in 2020 from 15,705 tonnes CO2e in 2019.

Social Achievements

• Prioritized the protection and safety of employees, customers, suppliers, and communities.
• Improved ‘AA’ rating in MSCI ESG Ratings assessment.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• COVID-19 impact on trading performance, particularly in Q2, leading to reduced demand and temporary site closures.
• Lower sales volumes from commercial aerospace, automation, electrification, and healthcare markets.

Mitigation Strategies

• Self-help programme yielding £2 million benefits in 2020, further £5 million in 2021, and £11-12 million full run-rate in 2023.
• Cost control and efficiency measures.
• Proactive cash management, including lower capital and development expenditure.
• Headcount reduction programme.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: MSCI ESG Ratings

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Miniature high voltage transformer/inductor power assembly for an implantable defibrillator
• Power supply for a ground-vehicle laser warning system
• New range of metal foil sensor chips

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• ESG factors
• Environmental, Social and Governance (ESG)

Environmental Achievements

• Investment managers demonstrated high levels of engagement activity on environmental issues, particularly climate change.

Social Achievements

• Not disclosed

Governance Achievements

• Investment managers demonstrated high levels of voting activity and challenge to management on executive pay and board independence. Monitoring of Investment Managers’ ESG and stewardship policy was carried out through regular investment and operational due diligence reviews and meetings.

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Waste Reduction
• Single-use Plastics Reduction
• Employee Wellbeing
• Equality, Diversity & Inclusion (ED&I)

Environmental Achievements

• 25% reduction in Scope 1 & 2 CO2 emissions during 2021 (41% reduction against 2019 benchmark)
• Switched US locations to renewable energy tariffs
• Three manufacturing sites sending zero waste to landfill
• 16% reduction in the weight of single-use plastics purchased (like-for-like site comparison)

Social Achievements

• Employee engagement score increased to 718.5 (two-star rating from Best Companies Ltd)
• Launched Leadership Programme for women
• Launched ED&I roadmap Group-wide
• Nearly 3,000 hours of employee volunteering through “Hours for giving” programme
• No site closures due to COVID-19 cluster cases

Governance Achievements

• Successful integration of Torotel acquisition six months ahead of schedule
• Completed a Pension Increase Exchange (PIE) exercise
• Implemented 15 global minimum standards based on ISO 45001 and ISO 14001

Climate Goals & Targets

Environmental Challenges

• Supply chain headwinds (extended lead times, component shortages, cost inflation)
• COVID-19 disruption
• Increased input costs (freight, power, wages)
• Macroeconomic uncertainty

Mitigation Strategies

• Price increases
• Software tools and data analytics to enhance parts availability and sourcing
• Inventory investment
• Close partnership with customers
• Self-help programme to reduce footprint and fixed cost base
• Diversification of funding sources (private placement debt)

Supply Chain Management

Supplier Audits: Regular assessments

Responsible Procurement

• Corporate and Social Responsibilities – Supplier Expectations policy

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: TCFD

Certifications: ISO 14001, ISO 45001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 3 (Good Health and Well-being)
• Goal 7 (Affordable and Clean Energy)
• Goal 8 (Decent Work and Economic Growth)
• Goal 9 (Industry, Innovation and Infrastructure)
• Goal 11 (Sustainable Cities and Communities)
• Goal 13 (Climate Action)

Products and operations contribute to these goals

Sustainable Products & Innovation

• Smaller, more accurate sensors for minimally invasive surgery
• FlexSense optical sensory array

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate
• Natural Capital and Biodiversity
• Human Rights
• Human Capital Management
• Diversity and Inclusion
• Corporate Governance

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Climate Change
• Employee Engagement
• Governance

Environmental Achievements

• Delivered an 18% reduction in Scope 1 & 2 emissions
• Scope 1 & 2 carbon emissions are now 62 per cent lower than our 2019 baseline.
• Intensity ratio (Scope 1 & 2 emissions against revenue) reduced to 17, down from 56 in 2019.

Social Achievements

• Achieved employee engagement score in line with 3 star ‘world class companies to work for’
• Record 91% of employees globally completed the employee engagement survey

Governance Achievements

• Agreement for sale of Cardiff, Hartlepool and Dongguan business units signed - expected to enhance margins and reduce leverage

Climate Goals & Targets

Environmental Challenges

• One-off HVAC breakdown at Plano facility affected production from June through to September and resulted in a £3 million reduction in divisional profits.

Mitigation Strategies

• Permanent fix to the HVAC system at Plano implemented.
• Full review of the viability of the system undertaken to ensure it is fit for purpose and identified some control software and physical improvements which will be implemented before the return of warm weather.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Net Zero emissions
• Employee engagement
• Environmental impact reduction

Environmental Achievements

• 62% reduction in Scope 1 & 2 carbon emissions from 2019 baseline (2023 data)
• Solar schemes operational in Malaysia, Mexico, and China

Social Achievements

• 2023 employee engagement score in line with three-star 'world-class companies to work for' benchmark
• 91% employee survey completion rate globally

Governance Achievements

• De-risked UK defined benefit scheme with buy-in insurance policy
• Completed buy-out of smaller US defined benefit scheme

Climate Goals & Targets

Environmental Challenges

• De-stocking in North American components business
• Lower demand for components products in North America

Mitigation Strategies

• £9 million headcount savings actioned in H1 2024
• Project Dynamo to unlock value and drive financial and operational improvements

Supply Chain Management

Climate-Related Risks & Opportunities