Climate Change Data

Environmental Metrics

ESG Focus Areas

• Carbon neutrality
• Staff turnover reduction
• Environmental efficiency improvements (energy, water, waste)
• Renewable energy increase

Environmental Achievements

• Converted all UK and Sweden factory lighting to energy-efficient LED lights
• Fixed water leaks in UK factories
• Increased reusable waste streams in partnership with external partners
• 25% reduction in carbon footprint at Rugby site over four years

Social Achievements

• Introduction of additional salary tiers for operators
• Banked hour schemes to counteract the end of furlough schemes
• More generous overtime rates
• Engagement with students at careers fairs and TeenTech
• Staff volunteering in homeless charities

Governance Achievements

• Strengthened ESG policy with carbon neutrality targets (2030, 2050)
• Formal anti-bribery training for management and staff
• QCA Board Effectiveness Reviews

Climate Goals & Targets

Environmental Challenges

• Global shortage of semiconductors impacting automotive production
• High staff turnover rate in the UK
• Raw material cost price increases
• Supply chain disruptions
• Reduced vehicle production by OEMs

Mitigation Strategies

• Cost restructuring and overhead reduction
• Equity raise of £3 million
• Renegotiated banking obligations
• Flexible working arrangements
• Additional salary tiers, banked hour schemes, and generous overtime rates
• Strategic buffer investment for critical Far East supplies
• Development of alternative sourcing strategies

Supply Chain Management

Responsible Procurement

• Raw material off-cuts returned to supplier for reuse
• Development of alternative suppliers for non-patented materials

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: finnCap 15-point model

Sustainable Products & Innovation

• Neptune material (up to 40% less polymer than alternatives)

Environmental Metrics

ESG Focus Areas

• Environmental (energy, CO2, water, waste)
• Social (staff turnover, employee engagement)
• Governance (corporate governance, risk management)

Environmental Achievements

• Reduced carbon footprint by 88% per £m of revenue by switching to 100% renewable energy and improving operational efficiencies.
• Reduced water usage in the UK by 21% per £m of sales.
• Reduced total waste produced by 38% per £m of sales.
• Launched recyclable Neptune-R material.

Social Achievements

• Reduced staff turnover in the UK from 34% to 10% through salary increases, reduced reliance on temporary labor, a banked hours scheme, and a bonus scheme.

Governance Achievements

• Increased Board to three independent non-executive directors in line with QCA Code guidelines.
• Undertakes regular QCA Board Effectiveness Reviews and anti-bribery training.

Climate Goals & Targets

Environmental Challenges

• European car sales remain lower than pre-Covid levels.
• Over-dependence on key customers (largest customer representing c.60% of Group revenue).
• Dependence on relationship with IKSung (supplier of patented and non-patented ingredients for Neptune).
• Risk of major failure of Neptune production line.
• Risk of new technologies rendering traditional passive NVH solutions obsolete.
• Security of software systems and cyber security.

Mitigation Strategies

• Focus on executive and luxury vehicle segment, which is more resilient.
• Gaining new customers (11 new customers in FY23).
• Securing alternative suppliers for non-patented materials in Neptune; developing Neptune-R to reduce dependence on IKSung.
• Investments in automated process control and diagnostic systems; maintaining a critical spares package and specialist engineers; technical support agreement with IKSung; backup volumes from IPC.
• Continuing innovation to find higher performance and more sustainable solutions; filing patents and trademarks.
• Investment in IT infrastructure; specialist third-party IT support; working group to ensure compliance with ISO27001 and TISAX.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Seeking alternative purchase sources to minimise currency risk
• Commitment to meet UK Carbon emission targets

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: finnCap ESG framework

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Neptune-R
• SilentShell
• Neptune Green

Awards & Recognition

• Not disclosed