Climate Change Data

Environmental Metrics

ESG Focus Areas

• Products and Services
• Environmental Impact
• Employees
• Stakeholders
• Communities

Environmental Achievements

• Reduced CO2e emissions (Scope 1 & 2) from 28,215 tonnes in 2011 to 25,275 tonnes in 2013.
• Reduced energy use per unit of revenue.
• Reduced water usage per unit of revenue.
• Reduced hazardous waste disposed to landfill per unit of revenue.
• No prosecutions, fines or enforcement action from environmental or health and safety legislation.

Social Achievements

• Recruited 93 new employees.
• Rolled out Organisational Effectiveness programmes across key functional areas.
• Implemented health and wellbeing services for employees and their families.
• Low voluntary employee turnover (2%).
• Received the Royal Society for the Prevention of Accidents (RoSPA) Order of Distinction award.

Governance Achievements

• Established a cross-functional Sustainability Steering Group.
• Adopted new greenhouse gas emission reporting requirements.
• Participated in the Carbon Disclosure Project for the first time.
• Formalized ethics through the Global Code of Conduct, including policies on anti-bribery, competition, and data protection.
• Signed up to the Cogent Science Industry partnership.

Climate Goals & Targets

Environmental Challenges

• Energy intensive polymer manufacturing process.
• Hazardous waste generation.

Mitigation Strategies

• Ongoing programme of work to identify how to use energy more effectively.
• Ongoing programme of work to examine how to further minimise waste generation and recover value from waste.
• Investment in improving and optimising the production process to reduce waste.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Focus on sustainable supply chain, including upstream production assets and sustainable sourcing of raw materials.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GHG Protocol Corporate Standard

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• VICTREX PEEK, enabling weight reduction in aerospace and automotive applications, leading to fuel efficiency and reduced CO2 emissions.

Awards & Recognition

• RoSPA Order of Distinction award

Environmental Metrics

ESG Focus Areas

• Sustainable solutions
• Resource efficiency
• Social responsibility

Environmental Achievements

• Achieved RoSPA Order of Distinction award for safety record (17th consecutive year)
• Recorded no lost time accidents
• All UK manufacturing plants operated within agreed consent limits
• Successfully achieved ISO 14001:2004 accreditation for environmental management system
• Emissions per unit of product reduced due to focus on cost of manufacture efficiencies

Social Achievements

• Victrex was listed in the top ten UK companies for the quality of its goods and services by Management Today
• 76 new employees recruited, balancing with internal promotions
• Increased proactive focus on corporate citizenship
• Partnership with Fleetwood High School in the UK through Business in the Community’s Business Class programme
• Charitable donations of £164,590 (2013: £81,224)

Governance Achievements

• Strengthened succession planning
• Re-aligned governance structures with product leadership strategy
• Focus on Board appointments
• Embedded Victrex Global Code of Conduct
• Board evaluation process assessed how the board works, skills, diversity and how to improve effectiveness

Climate Goals & Targets

Environmental Challenges

• Foreign currency risk due to being a UK-based global exporter
• Currency headwinds for FY 2015
• Potential implications for near-term capital expenditure in oil and gas projects due to softer oil price
• Higher cost of manufacture in the first half of the year

Mitigation Strategies

• Redoubling focus on cost efficiency and appropriate pricing
• Hedging policy to mitigate short-term currency risk
• Cost of manufacture improvement program
• Anticipating being able to fully cover FX impact in FY 2015 due to positive trading momentum and more recent exchange rates

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Focus on sustainable supply chain, including upstream production assets manufacturing BDF in the UK

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: ISO 9001:2008, ISO 13485:2003, ISO 17025:2005, ISO 14001:2004

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• PEEK-OPTIMA HA-ENHANCED (Spine)
• JUVORA (Dental)
• Victrex Pipe/Magma
• PEEK polymers for transmission and braking systems in automotive
• Aptiv acoustic film technology

Awards & Recognition

• RoSPA Order of Distinction award (17th consecutive year)

Environmental Metrics

ESG Focus Areas

• Safety
• Sustainability
• Resource Efficiency
• Social Responsibility
• Diversity & Inclusion

Environmental Achievements

• 85% of electricity sourced from renewables
• 250 tonne reduction in monomer waste
• Improved Carbon Disclosure Project score to B- (from E in 2013)
• One environmental notifiable event (minor incident with no significant environmental impact)

Social Achievements

• 0.9 million employee hours worked with no reportable injuries
• Over 1,000 employee hours supporting local communities
• 31 employees on Victrex apprenticeships
• 38 employees supported in external qualifications
• Employee engagement score 75%
• Updated Group Diversity & Equal Opportunities Policy to strengthen inclusion and diversity
• Gender Pay Gap report published

Governance Achievements

• No lost time accidents or employee reportable incidents
• Updated Board diversity policy
• Female representation on the Board at 30%

Climate Goals & Targets

Environmental Challenges

• Slowdown in global Automotive and Electronics markets
• Brexit uncertainty impacting cash conversion and inventory levels
• Adverse currency impacting profit
• Raw material and energy inflation
• Debottlenecking project leading to extended shutdown and under-recovered overheads

Mitigation Strategies

• Cost-effective debottlenecking project to increase capacity
• Brexit contingency plans including additional warehousing in Europe and China
• Hedging policy to mitigate currency risk
• Focus on cost efficiency and continuous improvement
• Increased penetration in less cyclical market segments

Supply Chain Management

Responsible Procurement

• Supply chain risk management
• Regular supplier engagement programme
• Handbook of standards
• Ethical audits
• Continuous improvement
• Supplier scorecards

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products
• Opportunities to support reduction of OEM backlogs through volume production/quicker processing

Reporting Standards

Frameworks Used: GRI, CDP, FTSE Russell Green Revenues Index

Certifications: ISO 14001:2015

Sustainable Products & Innovation

• PEEK Gears
• Aerospace Loaded Brackets
• PEEK-OPTIMA™ HA Enhanced product
• Aptiv™ acoustic film technology