Pets at Home Group plc
Climate Impact & Sustainability Data (2020-03 to 2021-03, 2021-03 to 2022-03, 2022-03 to 2023-03, 2023, 2024)
Reporting Period: 2020-03 to 2021-03
Environmental Metrics
Total Carbon Emissions:29,651 thousand tonnes CO2e
Scope 1 Emissions:11,337 tCO2e
Scope 2 Emissions:1,030 tCO2e
Scope 3 Emissions:4,697 tCO2e
Renewable Energy Share:96%
Waste Generated:11,758 tonnes
Carbon Intensity:21.8 tCO2e per £m revenue (FY21)
ESG Focus Areas
- Pet welfare
- People (employee wellbeing, diversity & inclusion)
- Planet (climate change, waste reduction, biodiversity)
Environmental Achievements
- -9.1% reduction in CO2e emissions (vs FY20), while growing sales by 7.9%
- 100% renewable electricity sourced for the main group electricity contract
- 98.3% of waste diverted from landfill
- 79% of own brand packaging is recyclable, recycled or compostable
- Piloted pet pouch recycling scheme in 20 stores
Social Achievements
- Launched four colleague diversity networks
- 84% colleague engagement score
- £15.8m bonus for colleagues, including a £1.9m ‘Thank you’ bonus
- £1m top up payment for our Colleague Hardship fund
- Partnership with the Prince’s Trust for work experience scheme
Governance Achievements
- Established ESG Committee
- Launched Our Better World Pledge strategy
- Completed a materiality assessment
- Reviewed ESG governance
Climate Goals & Targets
Long-term Goals:
- By 2040 become net zero (scope 3)
Medium-term Goals:
- By 2030 positively impact the life of every pet in the UK
- By 2030 enhance the lives of one million people through our shared love of pets
- By 2030 increase the impact of grants, donations and skill sharing to the rescue sector
- By 2030 educate 2m children in responsible pet ownership
- By 2030 improve the health of the nation’s pets by focusing on nutrition and health plans
- By 2030 become net zero carbon operationally (scope 1 & 2)
- By 2030 increase the number and diversity of people who can benefit from time with pets
- By 2030 maximise the value of our waste by adopting circular economy principles
Short-term Goals:
- By 2025 set the standards for the safety and quality of pet care products
- By 2025 be the leading employer of pet care experts
- By 2025 all our packaging will be recycled, recyclable or compostable
Environmental Challenges
- Supply chain disruptions due to the pandemic
- Reducing greenhouse gas emissions in the supply chain
- Reducing scope 1 emissions (fuel used to run distribution fleet and company cars)
- Ensuring 100% of packaging is recyclable, recycled or compostable by 2025
Mitigation Strategies
- Emergency grant programme of over £1m for rescue sector
- Colleague hardship fund topped up by an additional £1m
- Partnership with the British Retail Consortium’s Climate Action Roadmap
- Developed alternative sourcing strategies
- Appointed a dedicated Packaging Technologist and partnered with a specialist packaging technology company
- Piloted and will roll out a flexible plastics recycling scheme
Supply Chain Management
Responsible Procurement
- Ethical audit programme for own and exclusive brand products
- Commitment that all priority raw materials will be from sustainable sources by 2025
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather events affecting demand, sales, operations and supply chains
Transition Risks
- Potential market shifts and more stringent environmental regulation
Opportunities
- Development of energy-efficient products and services
Reporting Standards
Frameworks Used: UN SDGs, SASB, TCFD
Third-party Assurance: Ernst & Young LLP (limited assurance for GHG emissions)
Sustainable Products & Innovation
- Sustainable pet food products
- Recyclable packaging
Awards & Recognition
- Retail Week 2020 winner: Store of the Year and Speciality Retailer of the Year
- Institute of Student Employers (ISE) 2020 awards winner: Best Graduate Onboarding and Induction Activities Programme
- Marie Curie fundraising excellence awards: Cause Related Marketing Partner of the Year
Reporting Period: 2021-03 to 2022-03
Environmental Metrics
Total Carbon Emissions:30,621 tCO2e/year
Scope 1 Emissions:12,558 tCO2e/year
Scope 2 Emissions:12,610 tCO2e/year
Scope 3 Emissions:5,453 tCO2e/year
Renewable Energy Share:98%
Total Energy Consumption:96,425,923 MWh/year
Waste Generated:13,721 tons/year
Carbon Intensity:19.1 tCO2e per £m revenue
ESG Focus Areas
- Pets
- People
- Planet
Environmental Achievements
- 39% reduction in absolute CO2e emissions (scope 1 and 2) vs FY16
- 12.5% improvement in scope 1 & 2 CO2e intensity relative to £m revenue vs FY21
- 98% of group energy use from renewable sources
- ‘B’ CDP score
- £257k donated to the Woodland Trust, creating, protecting and restoring over 2,000 acres of woodland
Social Achievements
- £4.9m raised by the Pets at Home Foundation in FY22
- £2.9m raised through VIP Lifelines during FY22
- 9,683 volunteering hours donated to local communities
- 624 colleagues completed mental health training
- Launched Our Better World Pledge days, resulting in over 9,500 hours of volunteering
Governance Achievements
- Established a robust governance framework with regular meetings of management committees
- Submitted and received approval from the SBTi for carbon targets
- Conducted TCFD workshops to develop robust qualitative scenarios
Climate Goals & Targets
Long-term Goals:
- Become net zero across scopes 1, 2 and 3 by 2040
Medium-term Goals:
- Reduce absolute scope 1 and 2 GHG emissions 42% by 2030
- Reduce absolute scope 3 GHG emissions 42% by 2030
- Educate 2 million children in responsible pet ownership by 2030
- Enhance the lives of one million people by 2030
Short-term Goals:
- Reduce water consumption
- 100% recyclable packaging by 2025
- Extend flexible plastic recycling points to all stores by 2023
- Sustainably source priority raw materials by 2025
Environmental Challenges
- Scope 1 emissions increased by 11% due to sales growth and pre-COVID activity levels
- Increased scope 3 emissions driven by third-party logistics servicing business growth
- Challenges faced by pet charities in fundraising
Mitigation Strategies
- Developing a high-level roadmap to deliver science-based 2030 and 2040 carbon reduction targets
- Working with suppliers to develop carbon reduction pathways
- Developing a product sustainability framework
- Investing in renewable energy
- Implementing pet pouch recycling scheme
Supply Chain Management
Responsible Procurement
- Code of conduct
- Supplier sustainability requirements
- Ethical audits
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather
Transition Risks
- Regulatory changes
- Market shifts
Opportunities
- Development of energy-efficient products
- Sustainable pet food
Reporting Standards
Frameworks Used: SASB, TCFD, UN SDGs
Third-party Assurance: Ernst & Young LLP
Sustainable Products & Innovation
- Insect-based dog food
- Plant protein-based dog food
Awards & Recognition
- Europe’s Climate Leaders 2022
Reporting Period: 2022-03 to 2023-03
Environmental Metrics
Total Carbon Emissions:24,095 tCO2e/year (Scope 1 & 2)
Scope 1 Emissions:11,709 tCO2e/year
Scope 2 Emissions:12,386 tCO2e/year
Scope 3 Emissions:5,319 tCO2e/year (operational footprint)
Renewable Energy Share:100% (main Group electricity contract)
Total Energy Consumption:96,138,431 kWh/year
Waste Generated:14,996 tons/year
Carbon Intensity:17.2 tCO2e/£m revenue (FY23)
ESG Focus Areas
- Climate change
- Biodiversity loss
- Resource scarcity
- Pet welfare
- Diversity and inclusion
- Pet food sustainability
- Supply chain sustainability
- Employee wellbeing
Environmental Achievements
- 41% reduction in absolute scope 1 and 2 emissions since 2016, while increasing sales by 80%
- 98.3% of operational waste diverted from landfill
- 75% of company car fleet low carbon
- 10% improvement in CO2e intensity relative to £m revenue
- Over 7 million pet pouches collected for recycling
- 100% of main Group electricity contract renewable since 2017
Social Achievements
- £9m+ raised in FY23 by the Pets at Home Foundation and Lifelines
- Over 900k pets rehomed since 2007
- Over 5700 colleagues completed new nutrition training
- 101 Vet Graduates welcomed
- 207 Mental Health First Aiders trained
- 7th place in the FTSE Female Leaders Review 2023
Governance Achievements
- Refreshed sustainability strategy aligned with business strategy
- Supplier carbon initiative launched
- Updated Supplier Code of Conduct
- Launched Responsible Sourcing Handbook
Climate Goals & Targets
Long-term Goals:
- Net zero emissions by 2040
Medium-term Goals:
- All priority suppliers to have carbon reduction plans, 50% to achieve leadership status by 2028
- Create, protect, and restore over 15k acres of native UK woodland by 2028
- All priority raw materials to be sustainable and packaging recyclable by 2028
- Educate 300k children in responsible pet ownership by 2028
- Achieve 42% reduction in scopes 1, 2, and 3 emissions by 2030
Short-term Goals:
- Complete lifecycle analysis of pet food products
- Carbon footprint all own-brand pet food
- Roll out pet food bank to most pet care centres
Environmental Challenges
- Decarbonising pet food
- Reducing scope 3 emissions from supply chain
- Improving ethnic diversity
- Maintaining high pet welfare standards
- Addressing the cost of living crisis impact on pet owners
Mitigation Strategies
- Long-term partnership with Cranswick for sustainable pet food
- Investment in Good Dog Food Company (cultivated meat)
- Supplier carbon maturity framework
- Diversity and inclusion training
- Pet food bank collection points in stores
- Anaesthetic gas stewardship programme
Supply Chain Management
Responsible Procurement
- Supplier Code of Conduct
- Responsible Sourcing Handbook
- Carbon maturity framework
- Raw materials sustainability standards (by 2028)
Climate-Related Risks & Opportunities
Opportunities
- Development of energy-efficient products and processes
Reporting Standards
Frameworks Used: UN Sustainable Development Goals (SDGs), Sustainability Accounting Standards Board (SASB), Task Force for Climate-related Financial Disclosures (TCFD), CDP
Third-party Assurance: Ernst & Young LLP (limited assurance on GHG emissions)
UN Sustainable Development Goals
- Goal 3 (Good Health and Well-being)
- Goal 4 (Quality Education)
- Goal 8 (Decent Work and Economic Growth)
- Goal 12 (Responsible Consumption and Production)
- Goal 13 (Climate Action)
- Goal 15 (Life on Land)
- Goal 17 (Partnerships for the Goals)
Initiatives contribute to these goals through various programs and targets
Sustainable Products & Innovation
- Recyclable packaging
- Sustainable pet food
- New rabbit food
Awards & Recognition
- Retail Week 2023 Awards Responsible Retailer of the Year
- Personnel Today Awards 2022 HR Impact of the year award
- Great British Workplace Wellbeing Awards Team of the Year
Reporting Period: 2023
Environmental Metrics
Total Carbon Emissions:24,095 tCO2e/year
Scope 1 Emissions:11,709 tCO2e/year
Scope 2 Emissions:12,386 tCO2e/year
Scope 3 Emissions:885,000 tCO2e/year
Renewable Energy Share:100% (electricity)
Total Energy Consumption:96,138,431 MWh/year
Carbon Intensity:17.2 Tonnes CO2e per £1m revenue
ESG Focus Areas
- Climate Change
- Pet Welfare
- Employee Wellbeing and Diversity & Inclusion
- Responsible Sourcing
- Community Investment
Environmental Achievements
- 41% reduction in CO2e emissions vs FY16
- Pet pouch packaging collection points in 94% of pet care centres, collecting over 7 million pouches to date
Social Achievements
- £8.2m raised to support pet charities
- Over 11,000 hours donated to local communities
- More than 90% of support office and retail colleagues and 70% of practice colleagues completed diversity and inclusion training
Governance Achievements
- Revolving credit facility linked to sustainability targets; all three targets achieved in the first year
- Sustainability target representing 10% of maximum annual bonus award (subject to shareholder approval)
Climate Goals & Targets
Long-term Goals:
- Reduce absolute scope 1 and 2 GHG emissions 90% by 2040 from a 2020 base year
- Reduce scope 3 GHG emissions 90% by 2040 from a 2020 base year
Medium-term Goals:
- Reduce absolute scope 1 and 2 GHG emissions 42% by 2030 from a 2020 base year
- Reduce absolute scope 3 GHG emissions from purchased goods and services, and upstream transportation and distribution 42% by 2030 from a 2020 base year
- By 2028 all priority suppliers to have carbon reduction plans in place and 50% to have achieved leadership status
- By 2028 all priority own brand food products to be carbon footprinted
- By 2028 all priority raw materials to be sustainable and packaging recyclable
- By 2028 create, protect and restore 15k acres of UK native woodland (2020 base)
Short-term Goals:
- Reduce water consumption by 10% by 2025
Environmental Challenges
- Cost-of-living crisis impacting raw materials, products, and consumer budgets
- Supply chain disruptions
- Scope 3 emissions
- Attracting and retaining talent, particularly in veterinary services
Mitigation Strategies
- Launched promotional and value offers
- Developed alternative sourcing strategies
- Carbon maturity programs with suppliers
- Investment in a cultivated meat company
- Long-term supplier partnership with Cranswick
- Reward strategy to attract and retain talent
- Investment in clinical and non-clinical expertise, with a focus on wellbeing, diversity, and inclusion
- Earn As You Learn program
Supply Chain Management
Supplier Audits: Robust onboarding and ongoing monitoring program
Responsible Procurement
- Supplier Code of Conduct
- Responsible Sourcing Handbook
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather events
Transition Risks
- Increased operating costs
- Stringent environmental regulations
Opportunities
- Development of energy-efficient products
- Market leadership in sustainable pet food
Reporting Standards
Frameworks Used: SASB, TCFD
Third-party Assurance: Externally assured scope 1 and 2 emissions
Sustainable Products & Innovation
- Investment in lab-grown meat startup
Awards & Recognition
- Retail Week 2023 Responsible Retailer of the Year
Reporting Period: 2024
Environmental Metrics
Total Carbon Emissions:23,256 tCO2e/year
Scope 1 Emissions:12,632 tCO2e/year
Scope 2 Emissions:10,624 tCO2e/year
Scope 3 Emissions:88,228,750 tCO2e/year
Carbon Intensity:15.7 tonnes CO2e per £m group revenue
ESG Focus Areas
- Planet
- Pets
- People
Environmental Achievements
- 3.5% reduction in Scope 1 and 2 emissions in FY24, taking the reduction over the past 9 years to 44%
Social Achievements
- £9.2m raised to support pet charities
- Over 16,000 hours donated to local communities
Governance Achievements
- Welcomed Angelique Augereau to the Board as an independent Non-Executive Director with extensive experience in data, Artificial Intelligence and machine learning.
- Developed a Responsible AI Use Policy
Climate Goals & Targets
Long-term Goals:
- 90% reduction in absolute scope 1 and 2 GHG emissions by FY40 from a 2020 base year
- 90% reduction in scope 3 GHG emissions by FY40 from a 2020 base year
Medium-term Goals:
- By 2028 all priority own brand food products to be carbon footprinted
- By 2028 all priority suppliers to have carbon reduction plans in place and 50% to have achieved leadership status
- By 2028 all priority raw materials to be sustainable and packaging recyclable
- By 2028 create, protect and restore 15k acres of UK native woodland
Short-term Goals:
- 42% reduction in absolute scope 1 and 2 GHG emissions by FY30 from a 2020 base year
- 42% reduction in absolute scope 3 GHG emissions by FY30 from a 2020 base year
Environmental Challenges
- Reducing scope 3 carbon emissions
- Transitioning to more sustainable agricultural practices
- Development of battery technology and supporting charging infrastructure for heavy goods vehicles
- Maintaining sourcing location flexibility to switch supply lines away from areas of emerging risk
Mitigation Strategies
- Launch of the Manufacture 2030 platform with suppliers to support their decarbonisation
- Launch of the sustainable anaesthesia programme with vet practices
- Launch of a second long-term strategic pet food supplier partnership
- Increased dedicated in-house sustainability resource
- Ongoing assessment of climate-related weather vulnerabilities
- Regular review of business continuity plans for the distribution centre
- Conducting climate risk reviews proactively ahead of decisions to locate new operational infrastructure or select new suppliers
- Maintaining sourcing location flexibility
Supply Chain Management
Responsible Procurement
- Supplier Code of Conduct
- Responsible Sourcing Handbook
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather events affecting continuity of own operations, supply of products and sales
Transition Risks
- Increase in the cost of doing business
- Inability to efficiently transition our value chain and products and services to low carbon models
Opportunities
- Expanding products and services marketed as environmentally sustainable drives revenue and market share
Reporting Standards
Frameworks Used: TCFD, SASB
Third-party Assurance: Deloitte
Sustainable Products & Innovation
- Meatly