Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced gas and electricity usage through building improvements (window film, timer systems)
• Obtained planning consent for solar panel installation on headquarters building (estimated 75,000kWh/year reduction in reliance on external energy providers)
• Switched UK energy supply to 100% renewable power from Engie (zero carbon emissions certified by UK REGOs)

Social Achievements

• Maintained a strong safety culture with no reportable or lost time incidents
• Invested in mental health training (9 employees completed mental health first aid training)
• Implemented two employee engagement surveys (70-80% response rate), acting on feedback to address concerns
• Increased average training spend, including various courses for employees
• Continued investment in apprenticeships (10% of operations staff in Anthony Best Dynamics Limited are apprentices)
• Became a Corporate Partner to the Women’s Engineering Society (WES) to support female engineers

Governance Achievements

• Rolled out a revised Group-wide anti-corruption policy addressing the Bribery Act 2010
• Implemented a new ERP system to improve supplier due diligence (financial, commercial, safety, governance, technical competence, health and safety, security compliance)
• Improved gender diversity on the Board (female Executive and Non-Executive Directors)
• Formalized Corporate Social Responsibility (CSR) strategy with clear objectives

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting customer procurement decisions, supply chain, and manufacturing
• Downturn or instability in major geographic markets or market sectors
• Loss of major customers and change in customer procurement processes
• Failure to deliver new products
• Dependence on external routes to market
• Acquisitions integration and performance
• Cybersecurity and business interruption
• Competitor actions
• Loss of key personnel
• Threat of disruptive technology
• Product liability
• Failure to manage growth
• Foreign currency
• Credit risk
• Intellectual property/patents

Mitigation Strategies

• Investment in ADAS and autonomy R&D, global spread of sales revenue, manufacturing spread across several sites with protective measures, safety stocks held and dual sourcing, cash conservation measures
• Revenue spread across geographic markets, active safety and autonomous vehicle technology, reviewing options for adjacent markets, monitoring market trends
• Largest customer represents 5% of Group revenues, continued product development and customer service, long-term relationships
• Process for identifying new product opportunities, new product development process
• Transitioning to a direct sales model in key territories, maintaining agents and resellers in other territories
• Extensive due diligence, warranties and indemnities, earn-out deal structures, recruitment of senior management, close monitoring of performance
• External audit recommendations, cloud-based CRM/ERP system, enhanced security for remote access
• Constant product and technology development, monitoring competitors and IP, monitoring competitor product launches
• Expansion of staff headcount, succession planning, talent management, strong staff retention rate, recruitment and training of new management
• Horizon scanning of new technologies, engagement with customers and regulators, established simulation capability
• Robust product development process, established quality system, qualified staff, product liability insurance
• Strategic priority on capability and capacity, five-year financial model, new Engineering Design Centre, appropriate IT infrastructure, overseas offices
• Group Finance function monitors currency exposure, majority of revenues contracted in GBP, use of foreign currency contracts
• Risk assessed on a case-by-case basis, payment terms established, advance payments and letters of credit
• Patented technology, design features and/or encryption, continual review of patent and IP status

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier risk assessments
• Audits assessing human rights, data protection, modern slavery, health, safety, and environmental issues
• New ERP system incorporating comprehensive supplier due diligence

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: ISO 14001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Road safety
• Reduction of fossil fuels
• Environmental sustainability
• Employee health and safety
• Diversity and inclusion
• Ethical supply chains
• Good governance

Environmental Achievements

• Changed input energy to renewable sources through energy providers and solar panels
• Goal to be carbon neutral by 2030

Social Achievements

• Launched a major new project to define and communicate Group vision and values
• Initiated a rolling process of employee engagement surveys
• Standardised key health and safety processes and procedures across subsidiaries
• Continued engagement with the Women’s Engineering Society (WES)

Governance Achievements

• Established an ESG Committee
• Formalized due diligence on third parties using Dow Jones Risk Management tool
• Implemented a new Group-wide whistleblowing platform

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions
• Currency headwinds
• COVID-19 impact
• Staff isolation
• Foreign exchange exposure

Mitigation Strategies

• Dual sourcing for key components
• Maintaining safety stock levels
• Flexibility in production scheduling
• Supply agreements to secure volume and mitigate price increases
• Price increases to customers
• Natural hedge by matching cash inflows and outflows
• Use of foreign currency contracts

Supply Chain Management

Responsible Procurement

• Supplier sustainability requirements
• Human rights
• Data protection
• Modern slavery
• Health and safety
• Environmental issues

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environmental leadership
• Health and safety
• Ethics and compliance
• Our people
• Sustainable products

Environmental Achievements

• Achieved ISO 14001 accreditation for UK and German operations
• All Anthony Best Dynamics Limited premises now use renewable energy sources
• Group-wide data collection for waste generation

Social Achievements

• Launched a Professional Development Programme for employees
• 70% increase in training hours undertaken by the Group
• Maintained high levels of employee engagement
• No fatalities or reportable or lost time incidents

Governance Achievements

• Improved MSCI ESG rating to AA
• Compliance with the Quoted Companies Alliance (QCA) Code

Climate Goals & Targets

Environmental Challenges

• Supply chain disruption
• Inflationary cost pressures
• Global inflation, forecast recession and uncertainty

Mitigation Strategies

• Proactive inventory management
• Price increases for new orders
• Accelerating procurement and flexible production scheduling
• Dual sourcing for key components
• Maintaining safety stock levels

Supply Chain Management

Supplier Audits: Annual audits of suppliers based on supply chain risk assessments

Responsible Procurement

• ISO 9001 compliance for all suppliers
• Due diligence assessment of new suppliers
• Monitoring of human rights, data protection, modern slavery, health, safety and environmental issues

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: MSCI ESG

Certifications: ISO 14001

UN Sustainable Development Goals

• Goal 7
• Goal 9
• Goal 11
• Goal 13

Support for road safety, alignment with innovation in transport, commitment to employees

Sustainable Products & Innovation

• Advanced Driving Simulator
• Electric vehicle scheme for employees

Environmental Metrics

ESG Focus Areas

• Climate Change
• Health and Safety
• Employee Wellbeing
• Equality, Diversity and Inclusion
• Responsible Sourcing
• Ethics and Compliance

Environmental Achievements

• No health, safety or environmental fines or breaches of legislation; no recorded fatalities or life-changing injuries.
• Successful re-certification of ISO 45001 and ISO 14001 standards.
• Collection of Scope 3 emissions data expanded to include all material Scope 3 emissions for UK locations.
• Continued use of green renewable energy, generating 133,119 kWh of power.
• Completed assessment of climate-related risks and opportunities aligned with TCFD recommendations.
• Successful ESOS audit completed for UK businesses.
• Achieved MSCI ESG rating of AAA.

Social Achievements

• Launched a Group newsletter to all employees.
• Piloted ‘Manage for excellence’ programme in the UK.
• Improved recruitment practices through a new recruitment system.
• Enhanced corporate social responsibility programmes globally.
• Reduced employee turnover from 13% to 12%.
• 100% of employees received training.

Governance Achievements

• Robust sustainability oversight and risk governance structure in place.
• ESG Committee reviewed Group’s sustainability performance.
• Received external input on sustainability from auditor, investors, and experts.
• No new whistleblowing reports received; two previous cases resolved.

Climate Goals & Targets

Environmental Challenges

• Increase in Scope 3 emissions from business travel due to business growth.
• Increase in minor injuries due to enhanced reporting and headcount growth.
• Need to decouple growth from adverse environmental impacts.
• Need to expand Scope 3 emissions data collection globally.

Mitigation Strategies

• Implementing energy-efficient practices and upgrading facilities.
• Using certified renewable energy.
• Developing Scope 3 emissions tracking to plan reduction targets.
• Implementing Group Health and Safety Management System across additional subsidiaries.
• Introducing further control measures to reduce risks and prevent recurrence of minor injuries.
• Working with Auditel to reduce carbon emissions.

Supply Chain Management

Supplier Audits: Annual audits of suppliers based on supply chain risk assessments.

Responsible Procurement

• Due diligence assessment of new suppliers, including financial strength, environmental credentials, and quality assurance.
• Requirement for ISO 9001 compliance.
• Assessment of anti-bribery and corruption, human rights, data protection, modern slavery, and health, safety, and environmental issues.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: TCFD, Greenhouse Gas Protocol, SBTi

Certifications: ISO 45001, ISO 14001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 3 (Good Health and Well-being)
• SDG 5 (Gender Equality)
• SDG 7 (Affordable and Clean Energy)
• SDG 9 (Industry, Innovation, and Infrastructure)
• SDG 11 (Sustainable Cities and Communities)
• SDG 13 (Climate Action)

The company's activities in road safety, innovation in transport, and commitment to its people support these SDGs.

Sustainable Products & Innovation

• Driving simulators (reduce emissions by taking cars off the road).

Awards & Recognition

• Large Apprentice Employer of the Year award