Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainability

Social Achievements

• Implemented temporary pay reductions for indirect employees, including a 25% reduction for Executive Directors and 20% for Non-Executive Directors.

Governance Achievements

• Implemented temporary pay reductions for indirect employees, including a 25% reduction for Executive Directors and 20% for Non-Executive Directors.
• Appointed a Sustainability program leader.

Climate Goals & Targets

Environmental Challenges

• Covid-19 pandemic impacting sales and supply chains.
• Supply chain disruption and significant material price inflation.
• Material cost pressures and supply chain disruption.

Mitigation Strategies

• Swift decision making and cost discipline.
• Cost reduction actions (suspending discretionary spend, flexing working hours, rephasing payments, deferring pension contributions, implementing temporary pay reductions, renegotiating borrowing facilities, utilizing government support packages).
• Price increases to recover inflationary cost increases.
• Supply chain rationalisation, including the determination of optimal product production locations and optimising business processes.

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• High specification, durable, environmentally responsible products which use less lubrication, reduce customers’ energy usage and need replacement less frequently

Environmental Metrics

ESG Focus Areas

• Sustainability
• Environmental
• Social
• Governance

Environmental Achievements

• Progressive reduction in emissions intensity over the past six years
• Initiated Group-level projects to address environmental impact (energy, packaging, hazardous chemicals)

Social Achievements

• Covid-19 vaccination camps in India for employees, dependents, and the local community
• Renold Natural Disaster Fund in Malaysia to aid flood-affected employees
• Annual food drive in Morristown, USA, raising funds for local charities
• Construction of toilets for female students at a local school near the Indian factory

Governance Achievements

• Appointment of Vicki Potter to the Board, enhancing diversity
• Continued work to embed Renold Values and Behaviours in the business
• Strengthened Group management team with a new health and safety assurance manager

Climate Goals & Targets

Environmental Challenges

• Global supply chain disruption
• Material supply difficulties
• Increased freight costs
• High inflation
• Covid-19 related absenteeism and disruptions
• Geopolitical uncertainty (war in Ukraine)

Mitigation Strategies

• Strategically built manufacturing facilities around the world for flexibility
• Successfully implemented sales price increases
• Continued focus on cash management
• Contingency plans for potential disruption to German energy supplies
• Covid-19 protocols and health measures
• Alternative sourcing strategies
• Improved procurement strategies

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Working with suppliers to ensure sustainable sourcing

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather

Transition Risks

• Consumer preference for low-carbon products

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI, TCFD

Certifications: ISO 9001, ISO 14001, ISO 45001

Third-party Assurance: Carbon Decoded

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Low/no lubrication chain
• Energy-efficient chain

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental sustainability
• Health and safety
• Community sustainability
• Governance sustainability

Environmental Achievements

• Reduced emissions intensity
• Energy, packaging and chemical projects
• Lubrication and lower emission projects

Social Achievements

• Vaccination clinics and Food Drive
• Renold natural disaster fund
• Continued drive to increase near miss reporting and the sharing of good practice

Governance Achievements

• Business integrity and ethics
• Our values
• Accident reporting continues to be key agenda for all Board and Executive meetings

Climate Goals & Targets

Environmental Challenges

• Significant economic turmoil
• Cost pressure
• Material availability
• Global supply chain disruption
• High inflation
• European winter energy prices likely to be volatile

Mitigation Strategies

• Proactive price increases
• Measurable efficiency and productivity improvements
• Successful acquisitions
• Refinancing agreed, new facilities £85m plus £20m accordion, leverage covenant expanded to 3.0x EBITDA
• Phased action plan: realistic, ongoing, proportionate, manageable, scalable, delivers real & lasting outcomes

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Sustainability
• Climate Change
• Health and Safety
• Community Investment
• Diversity & Inclusion

Environmental Achievements

• Reduced Scope 1 energy usage by 2.6%
• Reduced Scope 1 and 2 emissions by 8.6%
• Consolidated transmission chain packaging designs using recycled and recyclable materials, reducing variants from 335 to 34.

Social Achievements

• Launched wellness challenge, resulting in a 2% reduction in absenteeism and reduced health plan spending in Morristown.
• Various community projects including classroom construction in India, food drives in the US and Canada, and clothing/equipment donations in Spain.
• Annual anti-bribery and corruption training for all relevant employees.

Governance Achievements

• Continued compliance with the QCA Code.
• Implemented robust risk management processes.
• Improved Board diversity.

Climate Goals & Targets

Environmental Challenges

• Macroeconomic and geopolitical volatility impacting demand and supply chains.
• Supply chain disruptions (though normalized in H1 2024).
• Increased competition in India and China.
• Inflationary pressures on materials, labor, energy, and transportation.

Mitigation Strategies

• Geographically diversified manufacturing footprint for supply chain resilience.
• Cost reduction, simplification, and standardization programs.
• Successful cost pass-through to customers.
• Investment in automation and improved processes.
• Development of new products and service centers.

Supply Chain Management

Responsible Procurement

• Localized supply chains for better communication and responsiveness.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events impacting operations or supply chains

Transition Risks

• Changes in customer, industry, or regulatory behavior related to climate change

Opportunities

• Development of energy-efficient products that help customers meet their sustainability goals

Reporting Standards

Frameworks Used: QCA Code, Companies (Strategic Report) (Climate-related Financial Disclosure) Regulations 2022, IFRS, FRS 101

Certifications: ISO 45001

Third-party Assurance: BDO LLP

Sustainable Products & Innovation

• Lubricant-free and long-life chains
• Recyclable packaging

Awards & Recognition

• Sustainability progress awards to eleven sites