Climate Change Data

Melrose Industries PLC

Climate Impact & Sustainability Data (2023)

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:1,890,950 tCO2e/year
Scope 1 Emissions:33,597 tCO2e/year
Scope 2 Emissions:113,048 tCO2e/year
Scope 3 Emissions:1,744,305 tCO2e/year
Renewable Energy Share:34%
Total Energy Consumption:568,133 MWh/year
Water Consumption:2,539,097 m3/year
Waste Generated:17,547 tons/year
Carbon Intensity:0.051 tCO2e per £1,000 revenue (market-based)

ESG Focus Areas

  • Product Safety and Quality
  • Climate Change: mitigation and adaptation
  • R&D for sustainable aviation
  • Business integrity

Environmental Achievements

  • 38% reduction in Scope 1 and 2 emissions since 2020
  • 88% of solid non-hazardous waste diverted from landfill in 2023
  • 32% decrease in water withdrawal intensity since 2021

Social Achievements

  • Lost Time Accident Frequency Rate of 0.053 (2022: 0.036)
  • 83% Average response rate for employee engagement surveys in 2023
  • 40% female representation on the Board

Governance Achievements

  • ESG metrics integrated into executive remuneration
  • GKN Aerospace submitted near- and long-term emissions targets to the SBTi
  • Commenced a sustainability data pre-assurance project

Climate Goals & Targets

Long-term Goals:
  • Net zero GHG emissions across the value chain by 2050
Medium-term Goals:
  • Reduce absolute Scope 1 and 2 GHG emissions by 50% by 2030
  • Reduce absolute Scope 3 GHG emissions by 25% by 2030
  • Encourage 70% of suppliers to have science-based targets by 2028
Short-term Goals:
  • Reduce Scope 1 and 2 GHG emissions intensity by 50% by 2025
  • Source 50% of electricity from renewable sources by 2025
  • Divert 95% of solid non-hazardous waste from landfill by 2025
  • Reduce water withdrawal intensity by 40% by 2025

Environmental Challenges

  • Exposure to carbon pricing mechanisms
  • Regulatory changes to flight time and routes
  • Declining demand for legacy product offering and dampening of aviation market
  • Raw material availability
  • Successful entry into service of new technologies
  • Replacement of carbon-intensive machinery
  • Flooding
  • Storms
  • Supplier disruption from extreme weather
Mitigation Strategies
  • Supplier engagement target
  • SBTi submission and Net Zero Transition Plan
  • Monitoring exposure to potential future carbon price increases
  • R&D investment in low-carbon technologies
  • Investment in sustainable aviation fuels
  • Engagement to ensure low-carbon aviation
  • Ensure reliable supply from alternative non-sanctioned materials
  • Increased focus on resource efficiency
  • Collaboration with certification bodies
  • Extensive use of ground and flight validation
  • Electrification of carbon-intensive manufacturing processes
  • Focus on additive manufacturing
  • Collaboration with local environment agencies
  • Alternative suppliers
  • Flood management plans
  • Property damage and business interruption insurance
  • Incident Commander
  • Tornado shelters
  • Use of semi-generators
  • Supplier business continuity plans

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Supplier Code of Conduct
  • Conflict Minerals policy
  • Human Rights policy

Climate-Related Risks & Opportunities

Physical Risks
  • Flooding
  • Storms
  • Supplier disruption from extreme weather
Transition Risks
  • Exposure to carbon pricing mechanisms
  • Regulatory changes to flight time and routes
  • Declining demand for legacy product offering
  • Raw material availability
  • Successful entry into service of new technologies
  • Replacement of carbon-intensive machinery
Opportunities
  • Operational efficiency in water, waste and energy
  • Material efficiency improvements of raw materials
  • Renewable energy
  • In-flight efficiency
  • Access to new markets through low-carbon aviation
  • Technological solutions for climate change mitigation

Reporting Standards

Frameworks Used: UN SDGs, SASB, GHG Protocol, TCFD, CFD

Certifications: ISO 14001, ISO 50001, ISO 45001, ISO 9001, EN/AS9100, CarbonNeutral®

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Goal 6.4
  • Goal 7.3
  • Goal 9.4
  • Goal 9.5
  • Goal 13.2
  • Goal 3.9
  • Goal 5.5
  • Goal 8.8
  • Goal 8.7

The report details how various initiatives contribute to these goals.

Sustainable Products & Innovation

  • Additively manufactured Fan Case Mount Ring
  • Recycled thermoplastic parts
  • Hydrogen propulsion systems

Awards & Recognition

  • Local Sustainability award for Trollhättan site