Climate Change Data

CITYFIBRE INFRASTRUCTURE HOLDINGS LIMITED

Climate Impact & Sustainability Data (2020, 2023)

Reporting Period: 2020

Environmental Metrics

Total Carbon Emissions:2980 tCO2e/year
Total Energy Consumption:11,905,215 kWh/year
Carbon Intensity:0.099 tCO2e per £’000 on-net sales revenue

ESG Focus Areas

  • Environmental
  • Social
  • Governance

Environmental Achievements

  • Moved 30 of 43 live fibre exchange sites to green energy by December 2020, with a goal to align all by December 2022.
  • All IT waste recycled at Telford site; waste disposal and recycling systems implemented in new offices.
  • Significant reduction in travel emissions due to encouraging agile working and video conferencing.

Social Achievements

  • Launched Diversity and Inclusion Leadership Group and four employee networks (Cultural Inclusion, Disability and Carers, Gender, LGBT+).
  • Signed up to The TechTalent Charter to promote diversity and inclusion.
  • Supported over 200 six-month job placements for 16-24 year olds under the Government's Kick Start scheme.
  • Partnered with social housing landlords on digital inclusion initiatives, including donating recycled laptops.
  • Supported educational events and STEM careers for young people.
  • Donated £35,000 each to the Trussell Trust and Our Frontline (Mind UK).

Governance Achievements

  • Appointed Anthesis, a sustainability consultancy, to craft a Responsible Business Strategy.
  • Continued membership of Business in the Community (BITC).
  • Undertook a full review of existing controls and policies to reduce risks related to bribery and corruption.

Climate Goals & Targets

Short-term Goals:
  • Align all fibre exchange sites to green energy by December 2022.

Environmental Challenges

  • Increased total greenhouse gas emissions (68% increase from 1,777 tCO2e in 2019 to 2,980 tCO2e in 2020) due to substantial expansion in physical infrastructure.
  • COVID-19 pandemic impacted marketing activities and construction.
  • Reliance on shareholder equity funding.
Mitigation Strategies
  • Implemented energy efficiency initiatives and a new sustainability strategy.
  • Followed COVID-19 secure guidelines and designated field staff as key workers.
  • Developed a clear mitigation strategy to minimize risk of exposure to COVID-19.
  • Short-term weekly cashflow forecasting, plus monthly longer-term cashflow forecasts to manage cash requirements.
  • Engaging proactively with Ofcom and Government to ensure its position is appropriately represented and protected.

Supply Chain Management

Responsible Procurement
  • Supplier Code of Conduct
  • Robust supplier selection process
  • Advanced Tender Award Programme (ATAP)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SECR, ESOS, GRI, GHG Protocol Corporate Standard

Certifications: ISO 14001, ISO 45001

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:7,952 tCO2e/year
Scope 1 Emissions:571 tCO2e/year
Scope 2 Emissions:3 tCO2e/year
Scope 3 Emissions:7,378 tCO2e/year
Renewable Energy Share:100%
Total Energy Consumption:33,000,000 kWh/year
Carbon Intensity:0.080 tCO2e per £'000 sales revenue

ESG Focus Areas

  • Climate Change
  • Social Responsibility
  • Governance

Environmental Achievements

  • Switched operational sites to 100% renewable energy sources.

Social Achievements

  • Committed to regionally-tailored community support programs; supported employee well-being with initiatives like Employee Assistance Programme, Private Medical Insurance, and Holiday Purchase Scheme; increased diversity and inclusion initiatives.
  • Achieved RoSPA Highly Commended Award in the Industry Sector category for health and safety.

Governance Achievements

  • Implemented a headcount reduction and capex optimisation programme to improve efficiency; established robust supplier selection process and long-term contracts with multiple partners to mitigate risks; implemented a risk-based assurance approach to contractors' safety performance; strengthened cyber and information security practices.

Climate Goals & Targets

Long-term Goals:
  • Net zero emissions across scopes 1 and 2 by 2028
Medium-term Goals:
  • Expand network to 8 million premises through organic build and acquisitions; submit net zero targets to SBTi for validation.
Short-term Goals:
  • Achieve profitability in 2024; complete Lit Fibre acquisition; integrate Lit Fibre network assets; maintain delivery of 1 million RFS premises per year.

Environmental Challenges

  • Challenging operating environment with inflation and interest rate spikes; outsourced construction risks (third-party insolvency, contract disputes); health and safety risks; regulatory environment changes; liquidity management; interest rate fluctuations; global economic and geopolitical uncertainty; competition; ESG commitment delivery; data and cyber security threats; digital disruption and emerging technology risks.
Mitigation Strategies
  • Tight financial control; robust supplier selection and long-term contracts; dedicated SHE team and SHiFT group; proactive engagement with Ofcom and Government; managing existing funding and forecasting cash flow; hedging instruments for interest rate exposure; long-term energy contracts and customer collections process improvements; largest independent Full Fibre network and Project Gigabit participation; Responsible Business Strategy with executive sponsorship; bolstered cyber security practices, ISO27001 certification, and Telecommunications Security Act compliance; developing AI strategy with ethical and governance considerations.

Supply Chain Management

Responsible Procurement
  • Supplier Code of Conduct
  • Pre-contract qualification process

Climate-Related Risks & Opportunities

Opportunities
  • Providing high-speed connectivity that enables digitization and IoT

Reporting Standards

Frameworks Used: Greenhouse Gas Protocol

Certifications: ISO 45001, ISO 14001, ISO 27001

Third-party Assurance: Anthesis Group

Awards & Recognition

  • RoSPA Highly Commended Award