Rolls-Royce Holdings plc
Climate Impact & Sustainability Data (2015, 2021, 2022, 2023, 2024-01 to 2024-04)
Reporting Period: 2015
Environmental Metrics
Total Carbon Emissions:455 ktCO2e (excluding product test and development)
Total Energy Consumption:112 MWh/£m
Waste Generated:4.31 t/£m
ESG Focus Areas
- Energy Consumption
- Waste and Recycling
- GHG Emissions
- Supplier Operations
- Community Investment
- Employee Safety
- Diversity and Inclusion
- Employee Wellbeing
- Human Rights
- Business Ethics
- Product Safety
- Product Performance
- Product Compliance
- Innovation
- Employee Engagement
- Taxation
- External Partnerships
- Local Economic Development
- STEM Education Outreach
- Material Stewardship
- Transparency and Disclosure
Environmental Achievements
- 8% reduction in GHG emissions (excluding product test and development) from 2014 to 2015
- 3% reduction in energy use (MWh/£m) from 2014 to 2015
- 3% reduction in total solid and liquid waste (t/£m) from 2014 to 2015
Social Achievements
- 1.6 million people reached through STEM education programmes in 2015
- One site achieved LiveWell accreditation in 2015
- 97% of employees completed dilemma-based ethics training in 2015
Governance Achievements
- 100% of managers certified compliance with Global Code of Conduct in 2015
- 75% of suppliers contractually agreed to adhere to the Global Supplier Code of Conduct in 2015
Climate Goals & Targets
Long-term Goals:
- Reduce greenhouse gas (GHG) emissions in our operations and facilities by 50%, absolute, by 2025 (excluding product test and development)
- Reach 6 million people through our STEM education programmes and activities by 2020
Short-term Goals:
- Reduce energy use in operations and facilities by 30%, normalised by revenue, by 2020 (excluding product test and development)
- Reduce total solid and liquid waste in operations and facilities by 25%, normalised by revenue, by 2020
- Achieve zero waste to landfill in operations and facilities by 2020 (excluding hazardous waste)
- Reduce total reportable injury (TRI) rate to 0.3 per 100 employees by 2020
- All suppliers aligned to our own ambitions: all suppliers agree adherence to the Global Supplier Code of Conduct by 2016
- All sites to achieve our employee health and wellbeing LiveWell accreditation by 2020
- Ensure our Sustainable Employee Engagement Index is greater than, or equal to, the Global High Performance Norm by 2020
Environmental Challenges
- Slight decline in Sustainable Employee Engagement Score from 84 in 2014 to 81 in 2015
- Increase in waste sent to landfill from 6,700 tonnes in 2014 to 7,200 tonnes in 2015
- Deterioration of TRI rate to 0.82 in 2015 from 0.64 in 2014
Mitigation Strategies
- Executive Leadership Team committed to improvement actions relating to leadership, communication, and enablement to improve employee engagement
- New programmes launched in 2015 to accelerate waste reduction
- Focus on improvement programmes for high-consequence activities (electrical safety and process safety management) to reduce TRI rate
Supply Chain Management
Responsible Procurement
- Global Supplier Code of Conduct
Climate-Related Risks & Opportunities
Awards & Recognition
- Industry Leader, Industry Mover and Gold Class award in the Dow Jones Sustainability Index
- FTSE 350 Climate Disclosure Leadership Index
Reporting Period: 2021
Environmental Metrics
Total Carbon Emissions:Not disclosed
Scope 1 Emissions:Not disclosed
Scope 2 Emissions:Not disclosed
Scope 3 Emissions:Not disclosed
Renewable Energy Share:Not disclosed
Total Energy Consumption:Not disclosed
Water Consumption:Not disclosed
Waste Generated:Not disclosed
Carbon Intensity:Not disclosed
ESG Focus Areas
- Climate Change
Environmental Achievements
- Bristol production site set to be the first Rolls-Royce facility to achieve net zero carbon status in 2022.
- Science-based target to reduce lifetime emissions of new sold products from Power Systems by 35% by 2030.
Social Achievements
- Not disclosed
Governance Achievements
- 2023 targets (making all civil aero-engines in production compatible with 100% SAF and certifying new generation mtu Series 2000 and Series 4000 engines for sustainable fuels) are linked to executive remuneration policy.
Climate Goals & Targets
Long-term Goals:
- Make all products in operation compatible with net zero by 2050.
Medium-term Goals:
- Make all new products compatible with net zero by 2030.
Short-term Goals:
- Eliminate emissions from own operations (scope 1 & 2) by 2030 (excluding product testing and development).
- Make all civil aero-engines in production compatible with 100% SAF by 2023.
- Certify new generation mtu Series 2000 and Series 4000 engines for use with sustainable fuels by 2023.
- Increase proportion of gross R&D spent on lower carbon and net zero technologies to 75% by 2025.
Environmental Challenges
- Decarbonizing hard-to-abate sectors (transport, energy, built environment) requires technological breakthroughs and global collaboration.
Mitigation Strategies
- Expanding collaboration with partners, industry leaders, and governments; investing in R&D for lower and net-zero carbon technologies (increasing to 75% of gross R&D spend by 2025); developing new technologies (fuel cells, microgrids, hybrid-electric and all-electric technologies); accelerating the take-up of sustainable aviation fuels (SAFs).
Supply Chain Management
Supplier Audits: Not disclosed
Responsible Procurement
- Not disclosed
Climate-Related Risks & Opportunities
Physical Risks
- Not disclosed
Transition Risks
- Not disclosed
Opportunities
- Development of energy-efficient products and services; accelerated take-up of sustainable fuels.
Reporting Standards
Frameworks Used: Science Based Targets initiative
Certifications: Null
Third-party Assurance: Not disclosed
UN Sustainable Development Goals
- Not disclosed
Not disclosed
Sustainable Products & Innovation
- UltraFan® aero engine (25% more efficient than first generation Trent engines); all-electric and hybrid-electric flight technologies; fuel cells; microgrids; small modular reactor (SMR) power plant.
Awards & Recognition
- Not disclosed
Reporting Period: 2022
Environmental Metrics
Total Carbon Emissions:319 ktCO2e/year
Scope 1 Emissions:233 ktCO2e/year
Scope 2 Emissions:86 ktCO2e/year
Scope 3 Emissions:87.3 MtCO2e/year (fossil fuel based pathway), 70.1 MtCO2e/year (sustainable fuels based pathway)
Renewable Energy Share:30.8%
Total Energy Consumption:1,025,783 MWh/year
Waste Generated:46.1 kilotonnes/year
Carbon Intensity:0.015 MtCO2e/£m OE revenue (fossil fuel based pathway)
ESG Focus Areas
- Climate change
- Decarbonisation
- Human rights
- Safety
- Ethics
- Compliance
- Diversity & Inclusion
- Community Investment
- Employee Wellbeing
Environmental Achievements
- 61% reduction in facility emissions (scope 1 + 2, excluding product test emissions) from 2014
- Bristol, UK Defence site achieved net zero carbon status for operational emissions (excluding emissions from product testing activities)
- Offtake agreement for exclusive supply of renewable energy for Friedrichshafen, Germany Power Systems facility
- First successful test flight of the Trent 700 powered RAF Voyager aircraft on 100% SAF
- mtu Series 4000 and 1600 reciprocating engines released for use on a range of sustainable fuels
Social Achievements
- Launched new digital technologies to strengthen learning and skills development
- 48,347 hours contributed by employees in community investment and STEM activities
- Employee engagement score of 3.85 (out of 5), exceeding target
- 22% of global hires were female (compared with 19% in 2020)
- Launched Connect & Belong and Thrive learning programmes for under-represented talent
- Opened a new nuclear skills academy in the UK
Governance Achievements
- Completed human rights saliency assessment
- Updated Global Supplier Code of Conduct
- Enhanced sustainability assessments in supply chain
- Improved accessibility to Group policies
- 76 employees left due to breaches of Our Code (improved reporting accuracy)
Climate Goals & Targets
Long-term Goals:
- Net zero value chain emissions by 2050
Medium-term Goals:
- Achieve net zero facility emissions by 2030
- Reduce total scope 1 + 2 emissions by 50% by 2030
- Reduce scope 3, category 11 emissions by 55% by 2030
Short-term Goals:
- Reduce total energy consumption by 50% by 2025
- Reduce total solid and liquid waste production by 25% by 2025
- Increase recycling and recovery rate to 68% by 2025
- Achieve a grand mean employee engagement score of 3.97 by the end of 2023
Environmental Challenges
- Inflationary pressures
- Supply chain disruptions
- Russia-Ukraine conflict
- Economic uncertainty
- Tightening labour market
- Energy insecurity
- Rising energy prices
Mitigation Strategies
- Diversified sources of supply
- Hedging for near and mid-term price protection
- Long-term contracts with customers and suppliers
- Cost-aware culture
- Repairing and reusing spare parts
- Improving productivity and efficiency
- Partnership approach with key suppliers
- Contractual pricing protection
- Hedging of key raw materials and energy
- Footprint consolidation
- Third-party efficiency improvements
- Supplier finance
- Safety stock
- IT disaster recovery planning
- Supplier diligence
- Insurance
Supply Chain Management
Responsible Procurement
- Global Supplier Code of Conduct
- Supplier sustainability requirements
- Supplier due diligence
- Dual sourcing
- Supplier finance
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather events
- Flooding
- Wildfires
- Extreme heat
Transition Risks
- Increased costs due to carbon pricing
- Reduced revenues due to changing customer demand
- Regulatory changes
- Increased investment required in R&D
Opportunities
- Increased market demand for low-carbon products
- Opportunities to enter new markets with new low or zero emissions products
Reporting Standards
Frameworks Used: TCFD
Third-party Assurance: Bureau Veritas
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 decarbonisation efforts, sustainable product development, and community investment
Sustainable Products & Innovation
- UltraFan demonstrator engine
- Pearl 10X engine
- mtu methanol engines
- mtu hydrogen engines
- Turbogenerator technology
- Rolls-Royce SMR
Awards & Recognition
- Second place in Dow Jones Sustainability Index
- Global transition award (Power Systems)
- First place in the Times Top 100 Engineering Graduate Employers
- Best Engineering Employer (Universum Rankings)
- Best Diversity Initiative (Engineering Talent Awards)
- Gold medal at the Brandon Hall International awards
- Winners of the talent management category at the 2022 Personnel Today awards
- Bronze Brandon Hall Award for the Best Unique or Innovative Leadership Programme
Reporting Period: 2023
Environmental Metrics
Total Carbon Emissions:257 ktCO2e/year (Scope 1+2)
Scope 3 Emissions:315.5 MtCO2e/year (fossil fuel based pathway without weight adjustment)
Renewable Energy Share:34%
Total Energy Consumption:947,955 MWh/year
Waste Generated:58.8 tons/year
ESG Focus Areas
- Climate change
- Energy transition
- Responsible consumption
- People and culture
- Ethics and compliance
- Human rights
Environmental Achievements
- Reduced absolute energy consumption by 429,697 MWh (31.2%) since 2014.
- Achieved 2025 normalised energy reduction target two years early.
- Tested all in-production and in-development Civil Aerospace engines on 100% unblended SAF.
- Released 80% of Power Systems portfolio for use on sustainable fuels.
- Rolls-Royce SMR design shortlisted in the Great British Nuclear selection process.
Social Achievements
- Exceeded 2023 employee engagement target with a grand mean score of 3.99 and highest ever participation rate.
- Improved safety index to 94% (2022: 85%).
- Reduced TRI rate by 20% to 0.32 per 100 employees (2022: 0.41).
- Global charitable contributions and community investment valued at £4.3m (2022: £5.1m).
Governance Achievements
- Achieved gender parity on the Board.
- Revised governance structure at Board and Executive levels.
- Completed a granular strategic review of the business.
Climate Goals & Targets
Long-term Goals:
- Net zero carbon emissions from operations and facilities and product compatibility with net zero operations by 2050
Medium-term Goals:
- Reduce total energy consumption, normalised by revenue, by 50% by 2025 (met)
- Reduce total solid and liquid waste production, normalised by revenue, by 25% by 2025
- Increase the recycling and recovery rate to 68% by 2025
Short-term Goals:
- Utilise a 10% blend of SAF across product testing activities (met)
- Prove all in-production commercial Civil Aerospace engine types are compatible with 100% SAFs (met)
- Prove compatibility of major Defence engines in production for 100% SAF (met)
- Release 80% of Power Systems portfolio for use on sustainable fuels (met)
Environmental Challenges
- Geopolitical tensions and their impact on supply chains and price volatility.
- Economic slowdown and its effect on demand.
- Supply chain uncertainties and their impact on lead times.
- Climate change and the transition to a net-zero economy.
Mitigation Strategies
- Building supply chain resilience through dual sourcing and improved forecasting.
- Focusing on advantaged businesses in growing markets.
- Implementing cost control measures and inflation-linked pricing clauses.
- Investing in lower-carbon solutions and sustainable fuels.
Supply Chain Management
Supplier Audits: 100% of active tier 1 suppliers completed first stage of sustainability due diligence.
Responsible Procurement
- Global supplier code of conduct
- Sustainability screening and assessments
Climate-Related Risks & Opportunities
Physical Risks
- Facility disruption
- Supply chain disruption
- Impact on product performance
Transition Risks
- Changing customer demand
- Changes in costs due to carbon pricing
- Changes in costs due to commodity price changes
- Change in investment requirement
Opportunities
- Demand for low-carbon energy sources (SMRs)
- Demand for sustainable fuel-compatible products
Reporting Standards
Frameworks Used: TCFD
Third-party Assurance: Bureau Veritas
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 decarbonization efforts, sustainable product development, and support for the energy transition.
Sustainable Products & Innovation
- UltraFan engine
- SMRs
- Sustainable fuel-compatible engines
Awards & Recognition
- Second place in the Dow Jones Sustainability Index for Aerospace & Defence
Reporting Period: 2024-01 to 2024-04
Environmental Metrics
Total Carbon Emissions:Not disclosed
Scope 1 Emissions:Not disclosed
Scope 2 Emissions:Not disclosed
Scope 3 Emissions:Not disclosed
Renewable Energy Share:Not disclosed
Total Energy Consumption:Not disclosed
Water Consumption:Not disclosed
Waste Generated:Not disclosed
Carbon Intensity:Not disclosed
ESG Focus Areas
- Not disclosed
Environmental Achievements
- Not disclosed
Social Achievements
- Not disclosed
Governance Achievements
- Credit rating upgrades at Fitch (BBB-), S&P (BBB-), and Moody's (Ba1), all with a positive outlook.
Climate Goals & Targets
Long-term Goals:
- Not disclosed
Medium-term Goals:
- Not disclosed
Short-term Goals:
- Deliver annualised sustainable benefit of around £200 million by the end of 2025
Environmental Challenges
- Continued industry-wide supply chain challenges
Mitigation Strategies
- Effective management of ongoing supply chain challenges
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: Null
Certifications: Null
Third-party Assurance: Not disclosed
UN Sustainable Development Goals
- Not disclosed
Not disclosed
Sustainable Products & Innovation
- Not disclosed
Awards & Recognition
- Not disclosed