Climate Change Data

Cohort plc

Climate Impact & Sustainability Data (2021-05 to 2022-04, 2022-05-01 to 2023-04-30, 2023-05-01 to 2024-04-30)

Reporting Period: 2021-05 to 2022-04

Environmental Metrics

Total Carbon Emissions:1226.17 tCO2e/year
Scope 1 Emissions:310.62 tCO2e/year
Scope 2 Emissions:366.89 tCO2e/year
Scope 3 Emissions:548.67 tCO2e/year
Total Energy Consumption:3,273,720 kWh/year
Carbon Intensity:11.34 tonnes of CO2e per £m turnover

ESG Focus Areas

  • Environmental
  • Social
  • Governance

Environmental Achievements

  • SEA achieved zero landfill status and increased staff training on environmental and waste improvement.
  • EID implemented a waste sorting scheme to increase recycling.
  • ELAC Sonar replaced all lighting with LED units and is replacing PCs and other electrical equipment with more energy-efficient models.
  • MCL, Chess, and SEA switched to green energy tariffs.
  • SEA underwent a successful ISO 14001 reaccreditation audit with no non-conformances recorded.
  • EID recently attained their first ISO 14001 accreditation.

Social Achievements

  • Resumed in-person Board visits to subsidiaries after COVID-19 restrictions.
  • Hosted Cohort Business Excellence Awards.
  • Launched various wellbeing initiatives across subsidiaries, including a Wellbeing Centre at SEA and the MASS 5K challenge.
  • MASS undertook an Employee Value Proposition project.
  • Ran Leadership Development Programmes.

Governance Achievements

  • Implemented and reviewed Anti-Bribery Policy.
  • Introduced Information Security Policy (ISP).
  • Adopted Anti-Slavery Policy.
  • Provided a confidential and anonymous whistleblowing facility.

Climate Goals & Targets

Medium-term Goals:
  • Replace vehicle fleets with electric or hybrid vehicles at the end of current lease periods. Install additional EV charging points.
Short-term Goals:
  • Roll out measures outlined in UK subsidiary Carbon Reduction Plans.

Environmental Challenges

  • Increased Scope 3 emissions due to resumed travel after COVID-19 restrictions.
Mitigation Strategies
  • Continued use of virtual meetings where appropriate.

Supply Chain Management

Responsible Procurement
  • MCL encouraging suppliers to consider alternatives to air freight.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UK Government’s Streamlined Energy and Carbon Reporting Guidance (SECR), GHG Protocol Corporate Accounting and Reporting Standard

Certifications: ISO 14001 (SEA, EID)

Reporting Period: 2022-05-01 to 2023-04-30

Environmental Metrics

Total Carbon Emissions:3,830.48 tCO2e/year (Group, including overseas locations)
Scope 1 Emissions:425.24 tCO2e/year (Group, including overseas locations)
Scope 2 Emissions:806.34 tCO2e/year (Group, including overseas locations)
Scope 3 Emissions:2,598.90 tCO2e/year (Group, including overseas locations)
Total Energy Consumption:6,355,779 kWh/year (Group, including overseas locations)
Carbon Intensity:21.20 tCO2e per £m turnover (Group, including overseas locations)

ESG Focus Areas

  • Environmental
  • Social
  • Governance

Environmental Achievements

  • SEA reduced energy consumption by insulating buildings and installing energy-efficient lighting and heating systems.
  • ELAC conducted an energy audit and implemented several measures to improve efficiency.
  • All UK sites continued to develop and adopt Carbon Reduction Plans, in accordance with PPN 06/21.
  • MASS continues to offset its carbon footprint.

Social Achievements

  • Supported communities and charities with financial donations and a matching scheme for employee funds raised.
  • Hosted school visits and work experience in STEM subjects.
  • Developed understanding of employees’ environments and challenges, influencing decision-making.
  • Supported the development of the cross-Group Leadership Development Programme.
  • Increased total number of employees to 1,132 (2022: 1,050).

Governance Achievements

  • Completed first externally facilitated Board evaluation.
  • Adhered to the QCA Corporate Governance Code (2018 edition).
  • Reported for the first time on the Task Force on Climate-related Financial Disclosures (TCFD).

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Continue to seek value-adding acquisitions with strong market positions in relevant sectors.
  • Implement actions arising from Board review.
  • Embed climate-related risks into Group strategy and risk management process.
  • Explore how to quantify the impact of scope 3 supply chain emissions.
Short-term Goals:
  • Continue to improve long-term order book across the Group.
  • Improve order intake at EID.
  • Seek opportunities from increased focus on defence stance, especially in NATO and Southeast Asia.
  • Monitor and proactively manage supply chain and recruitment challenges.
  • Improve efficiency of delivery to drive a better overall net margin.

Environmental Challenges

  • Higher prices in some supply chains.
  • Continuing weak performance in Portugal due to delays to new programmes.
  • Challenges in recruiting qualified and experienced people.
  • Supply chain disruptions due to the ongoing Ukrainian war and the tailwinds of COVID-19.
  • Rising energy prices and unstable energy supply.
Mitigation Strategies
  • Monitoring and proactively managing supply chain and recruitment challenges.
  • Improving efficiency of delivery to drive a better overall net margin.
  • Working with suppliers to broaden the supply chain and ensure they understand our needs, including holding more stock.
  • Evaluating opportunities to reduce energy consumption and access cheaper and renewable sources of energy.
  • Monitoring and measuring the financial impact inflation will have on the business.

Supply Chain Management

Responsible Procurement
  • All suppliers must comply with Cohort policies on anti-bribery and anti-slavery.

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events impacting supply chains and employee productivity.
  • Extreme heat impacting equipment performance.
Transition Risks
  • Rising energy prices and unstable energy supply.
  • Inflation fuelled by climate change.
  • Cost of carbon.
  • Increasing stakeholder expectations.
Opportunities
  • Innovating in climate-resilient products.
  • Responding to climate-driven security threats.
  • Helping countries to manage increased migration.

Reporting Standards

Frameworks Used: TCFD, SECR

Certifications: ISO 14001 (SEA and EID)

Awards & Recognition

  • Gold Award in the 2023 Ministry of Defence Employer Recognition Scheme

Reporting Period: 2023-05-01 to 2024-04-30

Environmental Metrics

Total Carbon Emissions:1663.97 tCO2e/year (UK); 2747.10 tCO2e/year (Group)
Scope 1 Emissions:225.14 tCO2e/year (UK); 439.21 tCO2e/year (Group)
Scope 2 Emissions:312.14 tCO2e/year (UK); 746.63 tCO2e/year (Group)
Scope 3 Emissions:1126.69 tCO2e/year (UK); 1561.26 tCO2e/year (Group)
Total Energy Consumption:2,422,061 kWh/year (UK); 4,678,415 kWh/year (Group)

ESG Focus Areas

  • Environmental
  • Social
  • Governance

Environmental Achievements

  • Reduced GHG emissions (UK operations): 2857.71 tCO2e in 2019/20 to 1663.97 tCO2e in 2023/24; Group emissions: 3324.26 tCO2e in 2022/23 to 2747.10 tCO2e in 2023/24
  • Chess uses green energy across all sites
  • ELAC SONAR's new facility recycles process water, runs solely on electricity, and has a green roof

Social Achievements

  • Increased headcount from 1,132 to 1,309
  • Launched cross-Group Leadership Development Programme
  • Supported STEM education through school visits and work experience
  • Charitable donations of £24,000

Governance Achievements

  • Established a Climate Impact Forum
  • Updated Anti-Bribery Policy in March 2024
  • Updated Whistleblowing Policy in April 2023
  • Applied the 2023 QCA Corporate Governance Code from May 1, 2024

Climate Goals & Targets

Medium-term Goals:
  • All at-risk sites to have adopted suitable adaptation measures by 30 April 2030
Short-term Goals:
  • 100% of all sites assessed for extreme weather exposure by 30 April 2025
  • Engagement with 100% of strategic partners and suppliers regarding climate risk by 30 April 2026
  • Assessment of climate-related risks for all new material suppliers by 30 April 2026

Environmental Challenges

  • Recruitment challenges, especially for high-level security-cleared individuals
  • Supply chain disruptions due to climate events and geopolitical factors
  • Inflation
  • Climate-related risks (physical risks from extreme weather, resource scarcity impacting supply chain)
Mitigation Strategies
  • Expanding workforce, particularly engineers and technical skills
  • Monitoring asset and geographic exposure to extreme weather, identifying alternative sourcing strategies
  • Increasing stock levels of key components
  • Index-based pricing in long-term contracts
  • Engaging with suppliers on climate risk management
  • Developing climate-resilient products

Supply Chain Management

Responsible Procurement
  • Compliance with anti-bribery and anti-slavery policies
  • Due diligence on suppliers
  • Monitoring supplier exposure to climate risk

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme temperatures
  • Flooding and storms
  • Drought
  • Water stress
Transition Risks
  • Energy cost and availability
  • Inflation
  • Investor expectations
  • Cost of carbon
  • Policies and compliance
  • Litigation
Opportunities
  • Innovating in climate-resilient products
  • Responding to climate-driven security threats
  • Helping countries manage increased migration

Reporting Standards

Frameworks Used: SECR, CFD

Certifications: ISO 14001 (Chess, EID, SEA)

Awards & Recognition

  • Small Cap Network Investor Relations Success Award 2024
  • Dividend Hero of the Year Award
  • Gatwick Diamond Business Awards – Chess winning Manufacturing Business of the Year 2024
  • International Trade and Exports award in the North Devon Business Awards (SEA)
  • Gold Award in the 2023 Ministry of Defence Employer Recognition Scheme (SEA)