Climate Change Data

Howden Joinery Group Plc

Climate Impact & Sustainability Data (2020, 2021, 2023)

Reporting Period: 2020

Environmental Metrics

Total Carbon Emissions:41,205 tCO2e (net after offset)
Scope 1 Emissions:38,405 tCO2e
Scope 2 Emissions:11,968 tCO2e
Total Energy Consumption:179,523,458 kWh
Waste Generated:Zero to landfill in manufacturing and logistics
Carbon Intensity:32.6 tCO2e per £m turnover (gross); 26.6 tCO2e per £m turnover (net)

ESG Focus Areas

  • People
  • Sustainable supply chain
  • Sustainable product
  • Environment and operations
  • Communities

Environmental Achievements

  • Zero waste to landfill in manufacturing and logistics operations in 2020.
  • Converted 11,000 tonnes of sawdust into energy, generating over 40,000 MWh of energy.
  • Reduced net carbon equivalent emissions from manufacturing by around 33% compared to 2019 using Green Gas.
  • Reduced UK depot waste percentage to landfill by 30% in 2020.

Social Achievements

  • 14th place in the Sunday Times 2020 Best Big Companies to Work For survey.
  • Two-star Best Companies accreditation.
  • Over 450 apprentices on tailored programmes.
  • Supported employees dealing with the impact of COVID-19, including furloughing over 8,000 employees.
  • Donated £1.1m to over 2,500 local charities.
  • Employee donations via payroll giving exceeded £200,000.

Governance Achievements

  • Achieved ISO 45001 in factories and logistics network.
  • Awarded distinction in the British Safety Council International Safety Awards.
  • Awarded the International Institute of Risk & Safety Management’s Technology Risk Management Initiative of the Year.

Climate Goals & Targets

Long-term Goals:
  • Carbon neutral manufacturing by end of 2021.
  • Zero to landfill across UK depot network over time.
Medium-term Goals:
  • Further 2% MPG improvement and 2% CO2 KG/M3 reduction for distribution fleet by 2023.
Short-term Goals:
  • Achieve ISO 45001 across UK depot network by end of 2021.
  • Achieve British Safety Council 5-star safety standard across all manufacturing and logistics sites by end of 2023.
  • Less than 5% of depot waste to landfill by end of 2022.
  • 1% MPG improvement and 5% CO2 KG/M3 reduction for distribution fleet by 2021.
  • 100% of kitchen frontals to have FSC or PEFC timber accreditation by end of 2022.
  • 100% recycled corrugated cardboard in packaging by end of 2022.

Environmental Challenges

  • Maintaining sales volumes and margins amidst changing consumer tastes, competitor actions, and pressure on input costs and sales prices.
  • Securing availability of stock and raw materials, and securing workplaces and distribution routes to meet reasonably foreseeable levels of sales.
  • Waste management across the 750 depot network.
  • Impact of COVID-19 on supply chains and demand.
Mitigation Strategies
  • Strong relationships with suppliers, long-term supply arrangements, and increased stockholdings of key products.
  • Safe working practices across all locations, robust disaster recovery capability.
  • Regularly reviewing forecasting models, flexible operating model.
  • Continued new product introduction, strong in-stock position, excellent service, support and convenience for customers.
  • Developing a ‘backhaul’ waste recovery system using the distribution fleet.
  • Investing in UK manufacturing to shorten supply chains.

Supply Chain Management

Responsible Procurement
  • FSC/PEFC certified wood; Responsible Purchaser recognition; Ethical Procurement & Supply training for buyers and compliance team; code of practice for timber suppliers

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Carbon Trust Standard

Certifications: ISO 45001, ISO 14001

UN Sustainable Development Goals

  • SDG 8
  • SDG 12
  • SDG 13
  • SDG 15

Mapping of material ESG areas and projects to UN SDGs

Sustainable Products & Innovation

  • Engineered stone flooring with recycled plastic underlay; Lamona washing machines with drums made from recycled plastic bottles; Lamona ovens with handles made from recycled fishing nets.

Awards & Recognition

  • British Safety Council International Safety Awards (distinction); International Institute of Risk & Safety Management’s Technology Risk Management Initiative of the Year; Charities Aid Foundation Gold Award

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:67,243 tCO2e (location based); 63,118 tCO2e (market based)
Scope 1 Emissions:45,659 tCO2e
Scope 2 Emissions:23,045 tCO2e (location based); 7,460 tCO2e (market based)
Renewable Energy Share:100% of grid electricity at UK manufacturing sites from renewable sources
Total Energy Consumption:308,287,234 kWh
Waste Generated:14,000 tons of sawdust converted to energy
Carbon Intensity:27.3 tCO2e per £m turnover (gross, location based); 19.3 tCO2e per £m turnover (net, market based)

ESG Focus Areas

  • People
  • Sustainable supply chain
  • Sustainable product
  • Environment and operations
  • Communities

Environmental Achievements

  • Achieved carbon neutral manufacturing by the end of 2021.
  • Maintained zero waste to landfill in manufacturing and distribution in 2021.
  • 99.1% of depot waste avoided landfill in 2021.
  • Converted 14,000 tonnes of sawdust into energy, generating over 40,000 MWh of heat.
  • UK manufacturing sites bought all grid electricity from renewable sources, avoiding 4,125 tCO2e.

Social Achievements

  • Delivered 112,000 hours of training.
  • Had 570 apprentices in training.
  • Launched a “Safe to talk” programme to support employees’ mental health and wellbeing.
  • Improved employee benefits, including increasing company pension contributions and launching a share scheme.
  • Donated £2.0m to charities and community groups.

Governance Achievements

  • Established a Sustainability Committee.
  • Implemented the ISS ESG reporting platform.
  • Made significant progress on TCFD reporting.

Climate Goals & Targets

Long-term Goals:
  • Net zero emissions (implied long-term goal based on TCFD reporting).
Medium-term Goals:
  • Achieve British Safety Council’s “5-Star” safety standard at all manufacturing and logistics sites by the end of 2023 (under review).
Short-term Goals:
  • Reduce depot waste to landfill to less than 5% by end of 2022.
  • Achieve ISO 45001 accreditation in depots.
  • Improve MPG of distribution fleet by 2% by 2023.
  • Reduce CO2 KG/M3 emissions of distribution fleet by 2% by 2023.

Environmental Challenges

  • Increase in RIDDOR-reportable injuries (196 per 100,000 employees) due to COVID-19 disruptions.
  • Challenges in achieving zero waste to landfill in depots.
  • Potential future sourcing challenges due to climate change (carbon pricing, supply chain decarbonization, trade tensions).
  • Potential physical risks to operations from climate change (extreme weather, rising sea levels).
  • Need for transitional investment for decarbonization of distribution and depot fleets.
  • Meeting customer demands for sustainable products.
Mitigation Strategies
  • Prioritizing return to pre-COVID safety standards in 2022.
  • Finding solutions for remaining depot waste.
  • Carrying out physical risk assessments of locations and key suppliers.
  • Developing analysis of medium and long-term climate risks.
  • Exploring HVO biofuel for distribution fleet.
  • Focusing on energy efficiency and decarbonization to lower costs.

Supply Chain Management

Responsible Procurement
  • Certified wood from responsibly-managed forests (FSC® or PEFC™).
  • Responsible purchasing practices.
  • Ethical Procurement & Supply training for buyers and compliance team.
  • Supplier Code of Conduct issued, mandating use of Sedex platform.

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events
  • Rising sea levels
  • Heat stress
  • Drought
Transition Risks
  • Carbon pricing
  • Supply chain decarbonization
  • Trade tensions
  • Increased raw material costs
  • Customer expectations for sustainable products
Opportunities
  • Increased sales and brand awareness
  • Lower cost base through energy efficiency
  • Access to lower-cost capital
  • Competitive advantage through sustainable products

Reporting Standards

Frameworks Used: TCFD, SECR

Certifications: ISO 14001, ISO 45001 (pending for depots)

UN Sustainable Development Goals

  • SDG 8: Decent Work and Economic Growth
  • SDG 12: Responsible Consumption and Production
  • SDG 13: Climate Action
  • SDG 15: Life on Land

Alignment explained in report

Sustainable Products & Innovation

  • Aiming for fully recyclable cabinets
  • Increased use of recycled materials in cabinets

Awards & Recognition

  • Highly Commended status by IIRSM

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:53,253 tCO2e (location-based); 40,794 tCO2e (market-based)
Scope 1 Emissions:39,528 tCO2e
Scope 2 Emissions:13,725 tCO2e (location-based); 1,266 tCO2e (market-based)
Scope 3 Emissions:937,098 tCO2e
Renewable Energy Share:96% of all UK energy from renewable sources
Total Energy Consumption:290,613,944 kWh
Waste Generated:Zero to landfill achieved in manufacturing and logistics; Zero to landfill across all UK depots
Carbon Intensity:23.0 tCO2e per £m (location-based); 17.7 tCO2e per £m (market-based)

ESG Focus Areas

  • Climate Change
  • Supply Chain Sustainability
  • Renewable Energy
  • Waste Management
  • Equality, Diversity, and Inclusion (EDI)
  • Health & Safety
  • Employee Wellbeing

Environmental Achievements

  • Achieved zero waste to landfill in manufacturing and logistics operations.
  • Achieved zero waste to landfill across all UK depots.
  • Reduced Scope 1 and 2 emissions by 3.6% against 2022.
  • 96% of all UK energy came from renewable sources by the end of 2023.
  • Converted over 10,000 tonnes of sawdust into energy.
  • Removed approximately 300k pieces of polystyrene from products.
  • Halesworth frontals made using 50% less plastic, resulting in 50% less CO2 emissions.
  • Greenwich Matt frontals are now 100% recyclable.

Social Achievements

  • Launched a Chartered Management Degree Apprentice Scheme.
  • Recruited 362 new apprentices.
  • Committed over £880,000 to fund construction apprenticeships in small businesses.
  • Published an EDI Toolkit for managers.
  • Achieved Disability Committed status.
  • Delivered events on physical, mental, and financial wellbeing.
  • Launched Counter Talk podcast promoting mental health conversations.
  • Partnership with Longcroft School showcasing STEM careers to young female students.

Governance Achievements

  • Refreshed ESG materiality assessment with independent review and stakeholder consultations.
  • Science-based targets submitted and approved.
  • Extensive supplier engagement linked to SBTi.
  • Reported Scope 3 data for the first time.
  • Implemented a comprehensive Human Rights Policy.
  • Introduced ESG-related vesting targets in PSP share plan.

Climate Goals & Targets

Long-term Goals:
  • Net Zero emissions by 2050 (90% reduction in all emissions)
Medium-term Goals:
  • 25% reduction in Scope 3 emissions by 2030
  • Achieve Route to Net Zero Standard
Short-term Goals:
  • 42% reduction in Scope 1 and 2 emissions by 2030
  • Increase HVO usage in 2024
  • Increase use of electric vehicles in 2024
  • Complete Phase 2 of physical climate risk assessment in H1 2024
  • Introduce clauses into standard supplier terms and conditions regarding Net Zero obligations in 2024

Environmental Challenges

  • 95% of baseline total emissions are Scope 3, primarily from purchased goods and product use.
  • Gathering consistent and quality data on Scope 3 emissions.
  • Finding plastic-free replacements for packaging.
  • Decarbonising the distribution fleet (lack of viable electric vehicle options for long-haul).
  • Sourcing challenges due to future physical or legal barriers from climate change.
  • Meeting customer demands for sustainable products.
Mitigation Strategies
  • Engaging with top suppliers to collaborate on decarbonisation.
  • Co-hosting ESG supplier collaboration summits.
  • Introducing ESG objectives into standard supplier terms and conditions.
  • Trialling HVO and Bio-LNG for the fleet.
  • Engaging with logistics partners to use electric vehicles.
  • Improving energy efficiency through driver training and route planning.
  • Using a specialist climate diagnostic tool to assess supply chain exposures.
  • Building sustainable considerations into new product design.

Supply Chain Management

Supplier Audits: Over 90% of suppliers registered with SEDEX; 324 supplier sites share ethical data; One third of supplier sites had a SMETA audit in the last 3 years

Responsible Procurement
  • Supplier Code of Conduct
  • SEDEX RADAR tool
  • SAP Ariba SLP
  • Ethical Procurement & Supply training

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events
  • Rising sea levels
  • Heat stress
  • Drought
Transition Risks
  • Carbon pricing
  • Pressure on supply chains to decarbonise
  • Raw material cost increase/unavailability
Opportunities
  • Cost reduction through energy efficiency
  • Access to capital through sustainable finance
  • Increased market share through sustainable products
  • Enhanced brand reputation

Reporting Standards

Frameworks Used: TCFD, SBTi, SECR, GHG Protocol

Certifications: ISO 45001, ISO 14001, FSC®, PEFC

UN Sustainable Development Goals

  • SDG 8: Decent Work and Economic Growth
  • SDG 12: Responsible Consumption and Production
  • SDG 13: Climate Action
  • SDG 15: Life on Land

Aligned with strategic pillars and foundation principles of ESG strategy.

Sustainable Products & Innovation

  • Halesworth frontals (50% less plastic)
  • Greenwich Matt frontals (100% recyclable)
  • Lamona appliances with polystyrene-free packaging

Awards & Recognition

  • FIRA gold award for product excellence