Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced normalised GHG emissions by 7.2% vs FY2021
• Increased renewable energy share to 63% of total electricity use
• Reduced absolute water use and non-recyclable waste by >30% since FY2007

Social Achievements

• Group Recordable Incident Rate of 0.54 (below industry average)
• 45% female members on the Smiths Board
• 31% female members on the Smiths Executive Committee
• £2.33bn direct economic contribution (employee costs + supplier costs + tax)

Governance Achievements

• 179 Speak Out reports in FY2022
• ESG metrics integrated into annual and long-term incentive plans for FY2023

Climate Goals & Targets

Environmental Challenges

• Increased Recordable Incident Rate (RIR) by 15% compared to FY2021, attributed to staffing and supply chain challenges, and the after-effects of COVID-19.
• My Say survey scores for culture, personal growth, and career opportunities below benchmark.

Mitigation Strategies

• Development and implementation of a global Material Handling of Heavy Parts Standard at John Crane to reduce manual handling injuries.
• Introduction of a revised people leader development programme in FY2023 focusing on emotional and cultural intelligence and inclusive leadership.
• More rigorous use of My Say survey data to inform investment and action plans.
• Focus on internal talent mobility and enhancing technical careers.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct
• Responsible Minerals Sourcing Policy
• Due diligence checks on new suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development and commercialisation of green technologies

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UNGC

Certifications: ISO 14001, ISO 45001, ISO/IEC 27001, Cyber Essentials

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 3
• Goal 5
• Goal 7
• Goal 8
• Goal 9
• Goal 11
• Goal 12
• Goal 13

Details on how Smiths' initiatives contribute to these goals are provided in the report.

Sustainable Products & Innovation

• John Crane's seals and methane detection systems
• Flex-Tek's electrical heating solutions
• Smiths Interconnect's high-reliability electrical connectors
• Smiths Detection's energy-efficient system design

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Decarbonization
• Energy Efficiency
• Waste Reduction
• Water Use Reduction
• GHG Emissions Reduction
• Safety
• Talent Development
• Diversity & Inclusion

Environmental Achievements

• 8% improvement in energy efficiency in FY23
• 10% reduction in non-recyclable waste in FY23
• 12% reduction in GHG in FY23, 65% since 2007
• 13% reduction in water use in stressed areas in FY23
• ~30% of John Crane sales from products that provide decarbonisation benefits

Social Achievements

• Top quartile safety performance, RIR1 of 0.25
• Developing internal talent
• Diverse leadership team
• Launched the Smiths Group Foundation promoting STEM-related causes
• Global colleague volunteering initiative encouraging community support

Governance Achievements

• Delivery of ESG commitments tied directly to short- and long-term incentive compensation

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions

Mitigation Strategies

• Building in resilience with multi-source strategy
• Lean management to support continuous improvement
• Refining internal processes and products
• Reducing complexity through product rationalisation
• Standardising processes to drive efficiencies
• SES projects to increase capacity and reduce cycle times
• Embedded Black Belt at specialist supplier to maximise their output
• Acceleration of alternative supply for higher volume parts
• 3D printing solution for customised parts further improving resilience

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• 73% of our electricity use was renewable in FY2024
• Improved energy efficiency by 5.5% in FY2024
• No spills or environmental compliance penalties or fines in FY2024
• All Smiths operational sites with over 100 colleagues are required to be certified under ISO environmental and safety standards (14001 and 45001)

Social Achievements

• 4 female members of our Executive Committee (36%) and 4 female Board members (40%)
• 27% of senior leadership positions were held by women in FY2024
• Our Human Rights Policy is guided by international human rights principles and covers elimination of forced/involuntary labour and child labour; humane treatment in the workplace; and right to a living wage

Governance Achievements

• Net Zero/climate transition plan and trajectory validated by the SBTi in December 2023
• We have undertaken climate scenario analysis work and make climate-related disclosures consistent with all of the Task Force on Climate-related Financial Disclosures (TCFD) recommendations in our Annual Report
• In FY2024 we invested in the EcoVadis supplier management platform to help us manage supplier relationships and so explicitly support our ESG commitments

Climate Goals & Targets

Supply Chain Management

Responsible Procurement

• We expect those who have a business relationship with us to share our commitment to human rights and the elimination of modern slavery as required by our Supplier Code of Conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: TCFD, SBTi

Certifications: ISO 14001, ISO 45001

UN Sustainable Development Goals

• 3
• 5
• 7
• 8
• 9
• 12
• 13

Our business activities, the way we operate, and our ESG framework and priorities enable us to contribute in a meaningful and practical way to seven of these critical global goals.