Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainability
• Colleagues
• Community

Environmental Achievements

• Reduced gas consumption by 25.7% and electricity consumption by 5.8% on a like-for-like basis compared to FY22
• Invested £3.9M in LED lighting and roof solar panel projects, aiming to generate at least 10% of total electricity requirements via onsite clean solar energy
• Recycled 80% of dry waste in FY23

Social Achievements

• 83% of colleagues ranked the Group as a great place to work in a February 2023 survey
• Centrally supported communities by over £300,000 in FY23
• Launched a 120-strong Customer Service Apprentice program in FY23

Governance Achievements

• Annual board evaluation undertaken in March-April 2023
• Annual appraisals of Executive Directors carried out
• Comprehensive review of remuneration strategy in October 2022

Climate Goals & Targets

Environmental Challenges

• Workforce recruitment and retention remains a challenge
• Continued cost pressures reflecting high inflation
• Rising energy costs

Mitigation Strategies

• Adjusted salaries to aid recruitment and retention of colleagues
• Strategies in place to mitigate cost pressures
• Investment in LED lighting and solar panels to reduce energy costs
• Disciplined focus on energy consumption by colleagues

Supply Chain Management

Responsible Procurement

• Securing excellent value for money while minimizing risk in the supply chain

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced electricity usage across the business despite an increase in the size and use of BEV charging infrastructure
• Invested £2.4m in solar panel installations across 41 Group locations, these will provide 10% of the Group’s electricity requirements in the first full year post installation
• Recycled 61% of its dry waste on site in FY24
• Reduced gas and electricity consumption by 2.0% on a total basis compared to FY23
• 9.09% decrease year-on-year in carbon intensity

Social Achievements

• Launched ‘Pay Later’ product to all Group sites, allowing customers to spread their vehicle repair payments interest free over 3-5 months
• Successful reduction of vacancy levels, particularly in respect of service technicians
• Increased colleague stability in all areas through substantial training and other initiatives to improve recruitment, induction and appraisal processes
• Supported communities by over £300,000 in FY24

Governance Achievements

• Continued a programme of Buybacks as a relevant element of returns to shareholders, alongside dividend payments
• Authority is held for a further £3m buyback programme to be appropriately deployed
• Board welcomed two new non-executive directors during the Year

Climate Goals & Targets

Environmental Challenges

• Weakened used car margins in H2 due to price corrections in the market
• Battery electric vehicle sales growth in the UK has stalled
• Potential for disruption in new vehicle supply as the UK Government seeks to transition to battery electric vehicles and Manufacturers attempt to navigate new emission legislation and potential significant fines
• High interest rates and a cost-of-living squeeze on consumer confidence
• Turnover in the key roles of sales executives and service advisors remains at too high a level
• Supply dislocation in respect of a number of supplying Manufacturers held back sales volumes in the Year and margins normalised
• Softness of BEV retail demand represents a considerable challenge in achieving the ZEV mandate targets for Manufacturers

Mitigation Strategies

• Use of dynamic tool helped the Group to successfully navigate the significant impact of movements in the wholesale used vehicle market in the second half of the Year
• Successful reduction of vacancy levels, particularly in respect of service technicians
• Implemented additional pay measures to enhance the recruitment and retention of technicians
• Increased stock turn and substantially reduced inventory levels
• Strong marketing and digital capability
• Focus on retention initiatives particularly in aftersales
• Focus on cost control
• Maintain close relationships with Manufacturer partners
• Ensure the Group has the right technology and training in latest vehicle models
• Introduction of retail Smart Repair

Supply Chain Management

Responsible Procurement

• We work with vehicle manufacturers and other suppliers who manage their supply chains in a responsible way

Climate-Related Risks & Opportunities

Physical Risks

• extreme heat
• flooding

Transition Risks

• Vehicle Emission Trading Scheme (VETS) compliance
• Retail demand for BEV may not match required VETS sales targets
• BEV vehicles changing aftersales work

Opportunities

• development of energy-efficient products

Reporting Standards

Frameworks Used: TCFD

Awards & Recognition

• National Franchised Dealers Association (‘NFDA’) Green Dealer Award