Climate Change Data

Environmental Metrics

ESG Focus Areas

• Labour Management
• Data Security & Data Protection
• Product Sourcing & Packaging
• Energy Use & Carbon Emissions
• Chemical Safety

Environmental Achievements

• Measured Scope 1 and 2 emissions (20 tCO2e and 286 tCO2e respectively); Commenced measurement of Scope 3 emissions; Raised £22,000 towards a £30,000 target for planting 5,000 trees; Planted 2,500 trees in Plymouth.

Social Achievements

• Improved gender balance (one-third of colleagues and senior management are women); Narrowed median gender pay gap to 7% (from 20% in 2020); Paid employees above the UK living wage (£9.16-£9.23 per hour); Paid apprentices one-third more than the minimum wage; Implemented employee assistance programs.

Governance Achievements

• Aligned with UN Sustainable Development Goals; Adopted SASB reporting standards; Aligned with TCFD recommendations; Approved and rolled out several new group-wide policies (Code of Conduct, Supply Chain Policy, Modern Slavery Statement, Environmental Policy).

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to COVID-19 and Brexit; Product delays and shortages; Increased COVID-19 disruption in Q4 2021; War in Ukraine, fuel inflation, decline in consumer confidence in the first half of 2022.

Mitigation Strategies

• Increased warehousing space by 29%; Focused on demand planning; Pivoted some product lines to margin-accretive own-label products; Improved supply chain communications; Increased real-time stock feeds and daily updates; Invested in category teams; Expanded courier network; Increased customer communications.

Supply Chain Management

Responsible Procurement

• New supply chain policy committing suppliers to worker safety, fair labor practices, data protection, and environmental standards.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather impacting customers' construction activities; Extreme weather affecting CMO offices and warehouses; Increased energy demand for cooling/heating; Power supply disruptions; Delivery disruptions.

Transition Risks

• Failure to adapt products/services; Failure to adapt properties to energy efficiency standards; Regulatory changes; Market shifts.

Opportunities

• Gaining market share with climate-friendly materials; Attracting talent; Reducing operational costs through renewable energy; Increasing profit margins.

Reporting Standards

Frameworks Used: SASB, GRI, TCFD, UN SDGs

Third-party Assurance: Ricardo

UN Sustainable Development Goals

• 3
• 5
• 6
• 7
• 8
• 10
• 11
• 12
• 13

CMO's activities contribute to these SDGs through providing safe and sustainable building materials, promoting gender equality, improving water quality, enhancing energy efficiency, ensuring fair labor practices, promoting diversity and inclusion, reducing housing shortages, minimizing waste, and improving climate resilience.

Sustainable Products & Innovation

• Eco Build Superstore (planned)

Awards & Recognition

• Tile Association’s website of the year; Shortlisted for the Institute of Customer Services Customer Strategy award

Environmental Metrics

ESG Focus Areas

• Climate Change
• Employee Engagement
• Diversity & Inclusion

Environmental Achievements

• Uses electricity 100% generated from renewable energy
• Aims to further reduce greenhouse gas footprint in areas such as corporate travel and vehicle use

Social Achievements

• Developed in-house training program (Megrim Academy)
• Provides employee assistance program for health and wellbeing
• Pays salaries above the UK living wage
• Actively strives to hire and promote more women; one-third of all employees, executive team, and board are female.

Governance Achievements

• Adopted the Quoted Companies Alliance Corporate Governance Code (QCA Code)
• Implemented a formal Board and Committee evaluation in 2022
• Has an Audit Committee, Remuneration Committee, and Disclosure Committee

Climate Goals & Targets

Environmental Challenges

• Reducing greenhouse gas emissions from corporate travel and vehicle use

Mitigation Strategies

• Implementing strategies to reduce the environmental impact of corporate travel and vehicle use (details not specified)

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: QCA Code, TCFD (recommendations followed)