JCB
Climate Impact & Sustainability Data (2020-2021)
Reporting Period: 2020-2021
Environmental Metrics
ESG Focus Areas
- Decarbonisation
- Nature
- Improved Air Quality
- Resource efficiency
- Environmental Protection
- Social Sustainability
- Systems thinking
Environmental Achievements
- Developed a hydrogen combustion engine
- Introduced battery-electric machines across a range of smaller products
- 8MW of solar PV came online in India
- Investments in UK manufacturing processes to make production cleaner and more efficient
Social Achievements
- Supported communities around manufacturing centers for over twenty years (India, Brazil, USA)
- Offered apprenticeships in the UK and USA (over 300 apprentices between 2017 and 2021)
- Supported various graduate placements and roles
- Lady Bamford Charitable Trust supported various projects in India benefiting approximately 15,000 children
Governance Achievements
- Sustainability performance overseen by the JCB Board and Senior Team
- Commitment to Science Based Targets Initiative Business Ambition for 1.5oC
Climate Goals & Targets
Medium-term Goals:
- 50% reduction in GHG Emissions across Scope 1 and 2 by 2030
Short-term Goals:
- Environmental Sustainability Training delivered to all employees by the end of 2023
- Scope 3 Target for 2030 confirmed and roadmap in place by 2023
- 75% reduction in single use packaging waste by 2030
- Zero deforestation risk in our supply chain by 2030
Environmental Challenges
- Supply chain disruptions
- Insufficient clean fuel infrastructure
- Time needed to bring new technologies to market
- Potential increase in carbon emissions due to growth and sourcing patterns
- Significant environmental impacts associated with battery production and disposal
- Decarbonising heat requirements for facilities and curing processes
- Lack of renewable energy contracts in some locations
Mitigation Strategies
- Investment in new factory in Vadodara for streamlined logistics
- Investment in renewable energy capacity globally (8MW solar PV in India)
- Investment in UK manufacturing processes for cleaner and more efficient production
- Development of plans to bring alternative technologies to market more quickly
- Focus on localisation and dual sourcing for supply and manufacture of parts
- Optimising freight movements and adoption of energy-efficient transport
- Embedding carbon reduction goals into supplier contracts
- Standardizing packaging requirements and introducing returnable packaging
- Investing in energy efficiency and applying a sustainable packaging standard
Supply Chain Management
Responsible Procurement
- Supplier Code of Conduct
- Embedding carbon reduction and wider sustainability goals into supplier contracts
- Supplier assessment tool
Climate-Related Risks & Opportunities
Opportunities
- Development of energy-efficient products
- Hydrogen combustion engine
Reporting Standards
Frameworks Used: Science Based Targets Initiative
UN Sustainable Development Goals
- SDG 9
- SDG 11
- SDG 12
- SDG 13
- SDG 14
- SDG 15
- SDG 17
JCB's 2030 targets are aligned with these SDGs.
Sustainable Products & Innovation
- Hydrogen combustion engine
- Battery-electric machines