Climate Change Data

Environmental Metrics

ESG Focus Areas

• Marketing, Food and Consumer Issues
• Ethical Sourcing and Procurement
• Environment, Health and Safety
• Human Rights and Employment Standards
• Community Investment

Environmental Achievements

• Percentage of manufacturing by tonnage covered by an externally certified Environmental Management System increased from 17% in 1999 to 37% in 2005.
• Reduced CO2 equivalent emissions (kg/tonne finished product) from 212 in 2000 to 181 in 2005.
• Reduced energy consumption (kWh/tonne finished product) from 597 in 2000 to 549 in 2005.
• Reduced water consumption (m3/tonne finished product) from 4.81 in 2000 to 3.17 in 2005.
• Reduced wastewater discharge (m3/tonne finished product) from 2.40 in 2000 to 2.02 in 2005.
• Reduced solid waste (kg/tonne finished product) from 46.8 in 2000 to 33.4 in 2005.

Social Achievements

• Global Employee Climate Survey 2005 (55,000 employees surveyed) showed Commitment: 3.3 out of 4 and Engagement: 3.0 out of 4.
• Total investment of nearly £10 million in community investment in 2005.
• 419 water wells built or under construction in Ghana.

Governance Achievements

• Main Board CSR Committee comprises all Board members. CSR is a regular feature at Board and Chief Executive’s Committee meetings.
• “Our Business Principles” annual communication and sign-up process with managers responsible for employee behaviour.
• Human Rights and Ethical Trading Policy applies to both employees and suppliers.

Climate Goals & Targets

Environmental Challenges

• UK product recall created concern.
• Performance not meeting standards in several areas across the five pillars.

Mitigation Strategies

• Using lessons from UK product recall to drive process improvement across Cadbury Schweppes. UK processes being modified to prevent recurrence.
• Ongoing efforts to improve performance across all five pillars, as evidenced by the progress reports in Appendix A.

Supply Chain Management

Supplier Audits: Over 80% of Tier 1 suppliers engaged in discussions; 70% of Tier 2 confirmed abiding by policy and standards.

Responsible Procurement

• Ethical Sourcing Standards include core labour rights, safe workplace environment, and fair remuneration.

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Ethical Trading
• Customer Satisfaction
• Employee Well-being
• Environmental Impact
• Community Engagement

Environmental Achievements

• Reduced carbon emissions by 17%
• Recycled 68% of waste
• Reduced electricity consumption by 13%
• Reduced gas usage by 25%

Social Achievements

• 9% reduction in total accident rate in retail stores
• 23% reduction in RIDDOR accident rate in retail stores
• 24% reduction in total accident rate in warehouses
• 16% reduction in RIDDOR accident rate in warehouses
• Supported 384 registered charities
• Community investment totaled £2,116,574

Governance Achievements

• Ethical Trading Initiative (ETI) membership and active participation
• Independent assurance of key data by PricewaterhouseCoopers LLP

Climate Goals & Targets

Environmental Challenges

• Maintaining ethical standards across a global supply chain
• Reducing environmental impact of operations
• Ensuring employee safety and well-being

Mitigation Strategies

• Robust audit program with a global Code of Practice team
• Implementation of energy efficiency measures
• Waste reduction and recycling initiatives
• Health and safety programs and training

Supply Chain Management

Supplier Audits: 1,555 audits/year

Responsible Procurement

• Next Code of Practice (COP)
• Restricted Substance Standard (RSS)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, Ethical Trading Initiative (ETI) Base Code, Greenhouse Gas Protocol

Certifications: Carbon Trust Standard (Next Retail Ltd)

Third-party Assurance: PricewaterhouseCoopers LLP

Awards & Recognition

• Carbon Trust Standard (Next Retail Ltd)

Environmental Metrics

ESG Focus Areas

• Decent Work and Economic Growth
• Industry, Innovation and Infrastructure
• Responsible Consumption and Production
• Peace, Justice and Strong Institutions

Environmental Achievements

• Westermo obtained ISO 14001 certification in January 2021.
• Beijer Electronics’ manufacturing plant in Taipei holds ISO 14001 certification.
• Beijer Electronics publishes Environmental Product Declarations (EPDs) for its products; ten product families have EPDs.
• Lifecycle analysis conducted on three best-selling products to understand climate impact.

Social Achievements

• No serious work-related accidents or fatalities in 2020.
• 100% of managers and staff received the Code of Conduct training.
• Korenix and Beijer Electronics conducted social initiatives in Taiwan (e.g., Eden Social Welfare Foundation, Green Challenge Activity).

Governance Achievements

• Beijer Electronics Group joined the UN Global Compact in June 2018.
• Supplier Code of Conduct based on the Ten Principles of the UN Global Compact.
• Regular surveys of employees and managers to improve the psychosocial working environment.

Climate Goals & Targets

Environmental Challenges

• Covid-19 pandemic impacted operations, reducing demand and causing supply chain disruptions.
• Reduced demand negatively affected order intake and sales.
• Unfavorable product mix due to larger demand downturns in higher-margin markets (US and Europe).

Mitigation Strategies

• Implemented cost-reduction programs in Korenix and Beijer Electronics, resulting in staff downsizing.
• Maintained development and sales organizations to avoid sacrificing long-term tempo.
• Secured new customers, although major orders will take time to materialize.
• Intensified partnership between Beijer Electronics and Korenix, coordinating sales, supply chains, and product development.

Supply Chain Management

Supplier Audits: Hundreds of suppliers; key suppliers audited annually, others every second year.

Responsible Procurement

• Code of Conduct for suppliers based on the Ten Principles of the UN Global Compact.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards, UN Global Compact

Certifications: ISO 9001, ISO 14001 (Westermo and Beijer Electronics)

UN Sustainable Development Goals

• Goal 8: Decent Work and Economic Growth
• Goal 9: Industry, Innovation and Infrastructure
• Goal 12: Responsible Consumption and Production
• Goal 16: Peace, Justice and Strong Institutions

Operations managed consistent with the UN’s SDGs.

Environmental Metrics

ESG Focus Areas

• Our people
• Our homes and communities
• Our operations

Environmental Achievements

• Reduced waste tonnes per plot by 20% (target) to 7.5 tonnes per plot (actual)
• 98% of non-hazardous construction waste diverted from landfill
• Launched a material re-use database for sites
• Reduced Scope 1 and 2 emissions by 4.2% against a 2021 baseline (target was 16.8%)
• Reduced Scope 3 emissions by 5.6% against a 2021 baseline (target was 22.4%)
• 31% reduction in CO2e in new homes planned (target was -75-80%)
• 100% of new sites completed a Biodiversity Action Plan

Social Achievements

• Total employee turnover rate decreased to 20.7% (2021: 24%)
• Voluntary labour turnover decreased to 17.7% (2021: 21%)
• Increased employee engagement score to 8.6 (2021: 8.1)
• Achieved certification as a ‘Top Employer’
• Delivered 898 additional affordable homes beyond planning policy compliance requirements (2021: 744)
• Raised over £257,000 for charity Papyrus

Governance Achievements

• Engaged two assurance providers (DNV and RPS) for 2022 sustainability data
• Implemented a new Code of Conduct (in progress for 2023)
• Operates a Speak Up hotline for reporting suspected wrongdoing
• Operates an Anti-Slavery and Human Trafficking Policy
• No reports of modern slavery within the Group were made to the hotline in 2022

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to increased demand for alternative fuels (HVO)
• Green skills gap delaying installation of new technologies
• Increased severity and frequency of flooding delaying construction
• Performance gap between design and as-built performance leading to increased energy bills
• Achieving ambitious targets for absolute emissions reductions while pursuing business growth
• Realising the ability to decouple business growth from carbon emissions
• Addressing the reduction of Scope 3 emissions
• Limited uptake of material re-use database

Mitigation Strategies

• Trialled the use of HVO fuel
• Group deals to ensure availability of materials and technologies
• More modelling to understand long-term risks
• Post-occupancy evaluations planned for 2023
• Carbon Action Plan to meet Scope 1 and 2 targets
• Net-zero carbon pathway to address Scope 3 emissions
• Behaviour change and creating meaningful efficiencies
• Trialing various technologies before large-scale rollout
• Embedding carbon-considering measures into project environmental plans
• Amending waste reduction target to be against floor area rather than plot

Supply Chain Management

Responsible Procurement

• PEFC or FSC chain of custody for timber
• Collaboration with Supply Chain Sustainability School
• Modern Slavery Act compliance

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Overheating
• Water stress
• Subsidence
• Extreme weather

Transition Risks

• Alternative fuel use
• Green skills gap
• Emerging regulation around embodied carbon
• Increased demand for low carbon homes

Opportunities

• Increased demand for low carbon homes
• Use of MMC and timber frame construction

Reporting Standards

Frameworks Used: TCFD, SBTi

Certifications: ISO 14001:2015, ISO 45001:2018

Third-party Assurance: DNV, RPS

Sustainable Products & Innovation

• Net-zero carbon homes

Awards & Recognition

• Top Employer
• WM People’s Best for Mental Health Award

Environmental Metrics

ESG Focus Areas

• Climate & Resources
• Building Communities
• Fostering Our People

Environmental Achievements

• Reduced total Scope 3 GHG emissions by 7% compared to 2022
• 98% of homes built in 2023 achieved an EPC rating of “B” or above
• Reduced construction waste per plot by 27% compared to 2022 (5.5 tonnes vs 7.5 tonnes)
• 97% landfill diversion rate for non-hazardous waste
• Completed 59 zero-carbon (regulated energy) homes in 2023
• Built 42 low-carbon homes

Social Achievements

• Generated £86 million in Social and Local Economic Value
• Delivered 1,119 additional affordable homes beyond Section 106 requirements (25% more than required)
• 299 learners passed through on-site skills academies
• Reduced employee turnover to 15.9% from 17.7% in 2022
• Improved stability index from 82.6% to 89%

Governance Achievements

• Established a Sustainability Committee with ELT and NED membership
• Aligned executive remuneration with net-zero commitment
• Achieved A- score for Climate Change disclosure in CDP
• Achieved Top Employer accreditation for 2024

Climate Goals & Targets

Environmental Challenges

• Increased Scope 1 and 2 GHG emissions by 9% compared to the 2022 baseline due to increased fuel consumption and reduced HVO usage.
• Increased natural gas usage by 27% due to increased plot deliveries and longer handover periods.
• Limited availability and volatile pricing of HVO fuel.
• Homeowners replacing low-flow fittings with unrestricted ones, hindering water reduction efforts.
• Complexity of waste management and data collection.
• Need for increased data collection and analysis to guide site-specific decisions.

Mitigation Strategies

• Set a target of 25% HVO fuel use across the business.
• Increasing the use of hybrid generators.
• Implementing energy-efficient practices on site, including the use of eco-cabins.
• Expecting natural gas consumption to reduce with the Future Homes Standard.
• Introducing standard operating processes across the business for waste management.
• Establishing a company-wide waste working group.
• Automating data collection using existing data systems.
• Increasing third-party assurance of key performance indicator data.

Supply Chain Management

Responsible Procurement

• Drafting of a group-wide Sustainable Procurement policy (to be published in 2024)

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Subsidence
• Windstorms
• Water stress

Transition Risks

• Increasingly stringent planning and design requirements
• Increased cost of materials
• Changes in customer demand

Opportunities

• Use of more efficient technology
• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI, SASB

Certifications: ISO 14001, ISO 45001, ISO 9001

Third-party Assurance: DNV Business Assurance Services UK Limited

UN Sustainable Development Goals

• Goal 1
• Goal 3
• Goal 7
• Goal 11
• Goal 12
• Goal 13
• Goal 15
• Goal 17

Vistry's initiatives contribute to these goals through affordable housing, health and wellbeing programs, renewable energy use, sustainable urban development, responsible consumption and production, climate action, biodiversity conservation, and partnerships.

Sustainable Products & Innovation

• Zero-carbon ready homes
• Low-carbon homes using timber frames

Awards & Recognition

• Best Residential Development award at the Bristol Property Awards
• Building with Nature Full Award