The Pebble Group plc

Climate Impact & Sustainability Data (2020, 2021, 2022, 2023)

Reporting Period: 2020

Environmental Metrics

Total Carbon Emissions:126,817 kgCO2e

Scope 1 Emissions:50,645 kgCO2e

Scope 2 Emissions:60,297 kgCO2e

Scope 3 Emissions:15,875 kgCO2e

Total Energy Consumption:571,235 kWh

Carbon Intensity:2,714 kgCO2 per £m of revenue

ESG Focus Areas

Impact of our business on our environment and our communities
Diversity, equity and inclusion
Board independence, ethics and leadership
Risk management processes

Environmental Achievements

UK emissions reduced by 30%, in part due to COVID-19 lockdowns
Energy reduction of 25% in Europe (29% in the UK)
EcoVadis Platinum status achieved
All shipping cartons used in our warehouse and logistics centres are 100% recyclable and 70% produced from recycled materials

Social Achievements

Faciliscares – Facilisgroup Partners continued to support local projects
Brand Addition launched employer supported volunteering
Brand Addition carried out an anonymous survey on the Group’s diversity and inclusion. The survey revealed over 90% of staff felt valued and respected.
No reportable accidents or incidents

Governance Achievements

Appointment of Group General Counsel and Company Secretary
Appointment of a Group Senior ESG Officer
EQS Group whistleblowing hotline platform implemented

Climate Goals & Targets

Long-term Goals:

Become the partner of choice for global brands, which use promotional products as a strategic stakeholder engagement tool; and develop the technology product capabilities of Facilisgroup

Medium-term Goals:

Increase Facilisgroup’s annual recurring revenues beyond $50m by the end of 2024

Short-term Goals:

Continue to develop our Win, Grow, Retain, Repeat model, attracting a number of significant client contracts.
Continue to attract new Partners to our existing model, setting the internal target of 205 total Partners by the end of 2021.

Environmental Challenges

COVID-19 caused major disruption to the Brand Addition Corporate Programme sales
The pandemic has slowed growth in the economy and increased the risk of a general economic downturn
Brand Addition has a relatively small number of key clients
A proportion of the Group’s revenue is denominated in foreign currency

Mitigation Strategies

The Group took swift action during 2020 in response to the pandemic, managing its flexible cost base to remain profitable and cash generative
The strength and robustness of the Facilisgroup subscription based technology platform was proven during the year and the Consumer Promotions division of Brand Addition was resilient
The acquisition of Facilisgroup…means that the impact of the loss of a key Brand Addition client on Group EBITDA is much reduced
Where it is considered appropriate, the Group uses hedges to reduce exposure to currency risk

Supply Chain Management

Supplier Audits: 224 audits were conducted

Responsible Procurement

All direct sourced suppliers (manufacturers) based in Asia or high-risk countries undergo a vendor audit assessment prior to any order being placed

Climate-Related Risks & Opportunities

Physical Risks

extreme weather events such as floods, droughts and storms

Transition Risks

transition to a low-carbon economy

Opportunities

development of energy-efficient products

Reporting Standards

Frameworks Used: QCA Code

Certifications: ISO9001, ISO14001 & ISO50001

Sustainable Products & Innovation

RPET clothing
notebooks made from recycled coffee grains

Awards & Recognition

EcoVadis Platinum status

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:207,631 kg CO2e (2020)

Scope 1 Emissions:115,498 kg CO2e (2020)

Scope 2 Emissions:76,257 kg CO2e (2020)

Scope 3 Emissions:15,876 kg CO2e (2020)

Renewable Energy Share:20% (direct sourced electricity)

Total Energy Consumption:935,421 kWh (2020)

Carbon Intensity:2,714 kg CO2e per £m of revenue (UK), 11,556 kg CO2e per £m of revenue (Europe), 14,297 kg CO2e per £m of revenue (Total) (2020)

ESG Focus Areas

Energy and climate change
Packaging and waste
Responsible sourcing
Diversity, equity and inclusion
Health, safety and well-being
Employee recruitment, retention and development
Governance, accountability and business culture
Economic performance
Business ethics and integrity
Human rights
Product integrity and transparency
Data security and privacy
Risk management

Environmental Achievements

29% reduction in European energy usage compared to 2018 baseline
100% waste generated from Brand Addition Manchester is now recycled or diverted from landfill
80% reduction in the amount of plastic transit packaging used in the UK warehouse and logistics centre compared to 2018 levels
Over 3,700kg of single use plastic packaging removed through a project replacing single use plastic with corn starch bioplastic bags

Social Achievements

Launch of a wellness programme for Brand Addition business
DEI training rolled out across Brand Addition (1,800 total training hours in 2021)
Facilisgroup ranked in the tenth percentile against its peers for employee engagement score
Facilisgroup listed in the best places to work for the promotional products industry by PPAI and ASI

Governance Achievements

Implementation of a common whistleblowing portal across the Group
Maintenance of sound risk management and internal controls supported by the Audit, Remuneration and Nomination Committees
Evolved Board reporting process to facilitate section 172 factors being central to all Board key decision making
Annual assessment of Board, Committee and individual Director effectiveness

Climate Goals & Targets

Medium-term Goals:

50% reduction in Group Scope 1 and Scope 2 emissions by 2030
Zero waste to landfill by 2030

Short-term Goals:

100% renewable energy in direct operations by 2025
Remove single use plastic packaging from all bespoke manufactured products by 2025
10% of Facilisgroup suppliers to be from ethnic minority and female-owned businesses by 2025
Eliminate the use of single use plastic packaging from inbound bespoke manufactured products by 2025

Environmental Challenges

Indirect emissions (Scope 3) from goods and services provided by Brand Addition
Lack of full visibility of waste data across the Group
Need to improve in some areas highlighted by Group-wide diversity survey
Addressing gender pay gap at Facilisgroup

Mitigation Strategies

Developing a framework to collect Scope 3 emissions data in 2022
Working with all global sites to collect reliable waste data to set targets and implement more recycling
Developing action plans based on diversity survey results
Developing career path planning across all levels of roles within Facilisgroup, providing transparency on pay and bonus structures, and connecting with local non-profit organisations to expand female interest in coding

Supply Chain Management

Supplier Audits: 224 vendor assessments undertaken in 2020

Responsible Procurement

Supplier code of conduct
Sustainable and ethical business practices evaluation and rating system
Internal product sustainability standard
Mandatory contractual compliance clauses for third-party partners on corporate responsibility, anti-bribery and corruption, and anti-slavery and human trafficking

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Sustainable Development Goals

Certifications: ISO 14001 (Brand Addition Head Office since 2004), ISO 50001 (Brand Addition Manchester, London and Hagen sites since 2016), ISO 9001 (Brand Addition UK sites)

UN Sustainable Development Goals

Good Health and Well-being
Gender Equality
Decent Work and Economic Growth
Reduced Inequalities
Responsible Consumption and Production
Climate Action
Life Below Water
Life on Land
Peace, Justice and Strong Institutions

Materiality analysis identified these SDGs as most relevant to the business

Sustainable Products & Innovation

Keyring, tyre tray and travel pouch from upcycled car tyres
Shower puffs made from recycled polyethylene
Sustainable towels manufactured from upcycled marine litter and post-consumer PET

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:50,554 tCO2e/year (market-based)

Scope 1 Emissions:251 + 211 tCO2e/year (location and market based)

Scope 2 Emissions:434 + 439 tCO2e/year (location and market based)

Scope 3 Emissions:50,695 tCO2e/year

Renewable Energy Share:36% of total energy use

Total Energy Consumption:2,820 MWh/year

ESG Focus Areas

Energy and climate change
Responsible sourcing and business practices
Diversity, health, well-being and engagement
Community Support

Environmental Achievements

Reduced Scope 1 and Scope 2 emissions by 8% from 2021 baseline
Reduced Scope 3 emissions by 2% in 2022
36% of Group sites now using renewable electricity
Prioritising carbon neutral logistics options for final mile deliveries

Social Achievements

Launched and expanded employee wellness programme to all Group locations
810 hours of Group volunteering hours donated
Partner Summit and Supplier Showcase brought together 120 distributors and 63 suppliers
Launched a ESG steering committee

Governance Achievements

Adoption of Group Framework on Conduct, Ethics and Compliance
Integration of TCFD recommendations into ESG strategy
Implementation of “The Race Code” initiative to review and improve DEI strategy

Climate Goals & Targets

Long-term Goals:

Not disclosed

Medium-term Goals:

50% reduction in Scope 1 and Scope 2 emissions by 2030

Short-term Goals:

Convert final European site to renewable electricity by end of 2023
Achieve 100% renewable electricity across all sites by end of 2025

Environmental Challenges

Reducing Scope 3 emissions and improving accuracy of emissions figures
Supply chain disruptions due to global events
Attracting and retaining key personnel
Technological change

Mitigation Strategies

Engaging with logistics partners to utilize carbon neutral delivery options
Engagement project with supply chain to encourage change and understand supplier actions
Improvements to granularity of Scope 3 data
Competitive compensation packages, regular employee surveys, and monitoring attrition rates
Continuously enhancing existing products and services, monitoring market for acquisition targets, investing in technology and IT capabilities

Supply Chain Management

Supplier Audits: 213 on-site vendor assessments in 2022

Responsible Procurement

Robust vendor assessment, on-site assessments for high-risk countries, mandatory compliance clauses in contracts, whistleblowing portal access for suppliers

Climate-Related Risks & Opportunities

Physical Risks

Extreme weather events

Transition Risks

Increased costs from regulatory changes and carbon taxes

Opportunities

Providing clients with credible sustainable solutions

Reporting Standards

Frameworks Used: GRI, TCFD

Certifications: ISO 9001, ISO 14001, ISO 50001

UN Sustainable Development Goals

Goal 7 (Affordable and clean energy)
Goal 12 (Responsible consumption and production)
Goal 8 (Decent work and economic growth)
Goal 11 (Sustainable cities and communities)
Goal 13 (Climate action)

Initiatives contribute to these goals through emissions reduction, sustainable sourcing, employee well-being, community engagement, and responsible business practices

Sustainable Products & Innovation

Products made from sustainable materials such as organic cottons and recycled plastics