Climate Change Data

Environmental Metrics

ESG Focus Areas

• People
• Planet
• Customers
• Suppliers
• Communities

Environmental Achievements

• Increased area of solar panels at New Mills, added a new ground mount array at Stonehouse and installed new solar arrays at our new site in Norton Shores, Michigan, USA and our existing site in Turin, Italy.
• Diverted a further 1,906 tonnes of waste from landfill.
• Reduced total GHG emissions by 22% (market-based) compared to the base year (2015).

Social Achievements

• Implemented Workday as a global HR system.
• Launched a stress management training program for line managers (nearly 500 participants).
• Established a Diversity and Inclusion Group.
• Implemented a UK network of mental health first aiders.
• Reduced the number of accidents from 207 in 2019 to 118 in 2020.

Governance Achievements

• Updated Group Business Code.
• Cancelled the interim dividend and declared no final dividend for 2019/20 due to macroeconomic uncertainty.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting operations, travel, and customer engagement.
• Increased waste to landfill by 5% (12.1 tonnes) due to COVID-19 restrictions.
• Restructuring and redundancies due to realignment of the business.

Mitigation Strategies

• Implemented agile responses to protect employee health and safety, including remote work and temporary site shutdowns.
• Introduced additional support for employee wellbeing (online presentations, self-help materials).
• Developed alternative routes to access customers using online conferencing tools and a virtual exhibition platform.
• Implemented measures to preserve key skills and boost future productivity.

Supply Chain Management

Supplier Audits: Regular basis

Responsible Procurement

• Compliance with trading terms and Group Business Code (covering modern slavery, conflict minerals, human rights, anti-bribery, tax evasion, data protection, and dangerous goods).

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Greenhouse Gas Protocol Corporate Accounting and Reporting Standard

Third-party Assurance: thinkstep (for 2018/19 GHG emissions)

Environmental Metrics

ESG Focus Areas

• Climate Change

Environmental Achievements

• Reduced absolute scope 1 and 2 GHG emissions by an unspecified amount from a FY2020 base year; reduced absolute scope 3 emissions by an unspecified amount from a FY2020 base year.

Social Achievements

• Not disclosed

Governance Achievements

• Net Zero targets reviewed and approved by the Science-Based Targets initiative (SBTi).

Climate Goals & Targets

Environmental Challenges

• Discontinuation of the GHG Protocol Quantis tool; need for more primary and secondary data related to embodied emissions; previous inability to calculate emissions associated with the use stage of all major products; data errors and/or calculation methodologies.

Mitigation Strategies

• Utilized a different methodology after the discontinuation of the GHG Protocol Quantis tool; sourced more primary and secondary data; calculated emissions associated with the use stage of all major products; corrected data errors and/or calculation methodologies.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GHG Protocol, BS EN ISO 14064-1:2019

Certifications: Null

Third-party Assurance: Limited assurance engagement

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Net Zero
• Diversity and Inclusion
• Governance

Environmental Achievements

• 14% reduction in market-based statutory greenhouse gas emissions compared to FY2023
• 99% of purchased electricity is now from certified renewable sources
• Increased solar electricity self-generation at several buildings
• Conversion of vehicle fleet to low-carbon fuels

Social Achievements

• Launched new employee resource groups for neurodiverse and disabled colleagues
• Ran allyship workshops for over 150 employees
• Global employee engagement survey achieved 74% engagement score (above global average)
• Continued development of equality, diversity and inclusion program

Governance Achievements

• Global launch of new Code of Conduct ('Doing Business Responsibly')
• Established ESG Steering Committee
• Improved global compliance programs

Climate Goals & Targets

Environmental Challenges

• Challenging trading environment in semiconductor manufacturing equipment markets
• Currency headwinds
• Pricing pressures in China from emerging local competitors
• Economic and political uncertainty
• Increasingly complex laws and regulations as an international business
• Increasing competitor activity in overseas markets

Mitigation Strategies

• Continued investment for long-term success
• Maintaining sufficient headroom in cash balances
• Maintaining appropriate levels of buffer inventory
• Strengthening direct sales activities in China
• Implementation of people strategy, resulting in above-average employee engagement
• Risk dashboard for key manufacturing sites
• Adapting stock levels for high-risk items
• Developing alternative sourcing strategies
• Improving global compliance programs
• Forward cash flow hedging contracts

Supply Chain Management

Supplier Audits: 130 suppliers assessed for climate-related physical risks

Responsible Procurement

• Self-assessments for new suppliers
• Regular communication with key suppliers
• Compliance audits
• New Code of Conduct
• Supplier relationship management platform
• Sustainability training for buyers
• Collaborative engagement with emissions-intensive suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Wildfire

Transition Risks

• Regulatory changes (e.g., carbon taxation)
• Market shifts (e.g., transition to EVs)

Opportunities

• Growth in AM market
• Transition to EVs
• Increased use of metrology to reduce waste

Reporting Standards

Frameworks Used: TCFD, UN SDGs

Certifications: ISO 14064-1:2019

Third-party Assurance: British Standards Institute (limited assurance)

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 9 (Industry, Innovation and Infrastructure)
• Goal 13 (Climate Action)

Initiatives contribute to these goals through emissions reduction, sustainable product development, and support for customers' sustainability goals.

Sustainable Products & Innovation

• Lighter AM components for increased fuel efficiency
• AM designs with lattice structures for improved bone integration