Reconomy
Climate Impact & Sustainability Data (2023)
Reporting Period: 2023
Environmental Metrics
Total Carbon Emissions:190,368.90 tCO2e/year
Scope 1 Emissions:11,138.62 tCO2e/year
Scope 2 Emissions:295.57 tCO2e/year (market-based), 2,996.90 tCO2e/year (location-based)
Scope 3 Emissions:178,934.7 tCO2e/year
Renewable Energy Share:77.85% of total energy use
Total Energy Consumption:16,845,322.58 MWh/year
Water Consumption:32.35 m3/year
Waste Generated:3,996.14 tons/year
Carbon Intensity:62.3 tCO2e/£M annual gross profit (Scope 1 & 2), 50.7 tCO2e/£M annual gross profit (Scope 3)
ESG Focus Areas
- Environmental value
- Social value
- Business value
Environmental Achievements
- Reduced full-scope carbon intensity by 49.7%
- 95.4% of electricity from renewable sources
- Nearly 98.5% of waste diverted from landfill (UK Recycle outsourced)
Social Achievements
- Delivered £1.3 million of pure social value
- 1,470 volunteering hours contributed
- Achieved an industry-leading +66 net promoter score (NPS)
- Implemented enhanced maternity leave
- Delivered 750 hours of training for mental health and wellbeing
Governance Achievements
- Maintained EcoVadis Gold certification
- Received approval from the Science Based Targets initiative (SBTi) for climate goals
- Developed sustainability-related pay arrangements for executives (to launch in 2024)
Climate Goals & Targets
Long-term Goals:
- Reach net zero GHG emissions across the value chain by 2040
Medium-term Goals:
- Reduce absolute Scope 1 and 2 GHG emissions to 33.6% by 2028 from a 2021 base year
- Reduce Scope 3 GHG emissions 44% per USD value added by 2028
- Increase tonnage reused/circular vs total by 2025
Short-term Goals:
- Reduce carbon intensity on 2021 levels by 12% by 2028
- Increase active annual sourcing of renewable electricity to 100% by 2028
- Implement Climate and Nature Positive Strategy and Reconomy Environmental Action Plan (REAP) by 2024
Environmental Challenges
- Data availability and quality in measuring Scope 3 emissions
- Supply chain disruptions due to geopolitical instability
- Uncertainty of government policy
- Risk of greenwashing accusations
- Need for increased recycling infrastructure
Mitigation Strategies
- Improved carbon reporting methodology (moving away from spend-based data)
- Implementation of a Carbon Reduction Plan aligned to 1.5°C
- Investment in proprietary technologies for data management and harmonising operations
- Engagement with regulators and policy makers
- Investment in UK infrastructure to increase recycling capacity
Supply Chain Management
Supplier Audits: 1,815 supplier site visits in 2023
Responsible Procurement
- Sustainable Procurement Policy (based on ISO 20400)
- Supplier Sustainability Charter requiring CO2e reduction targets
- Code of Conduct for all preferred and approved suppliers
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather events (acute and chronic impacts)
- Operational disruption
- Property/infrastructure damage
Transition Risks
- Increased cost from legislation (GHG emissions pricing, carbon tax)
- Mandates on products and services
- Change in demand for services
- Cost of low-carbon transition
- Unsuccessful investment in new technologies
Opportunities
- Resource efficiency
- Energy source use
- Products and services
- Markets
- Resilience
Reporting Standards
Frameworks Used: EcoVadis, GRI, TCFD, SBTi, CDP
Certifications: ISO 14064, ISO 45001 (Casepak)
Third-party Assurance: Achilles (for carbon data), KPMG (financial audit)
UN Sustainable Development Goals
- SDG 12 (Responsible Consumption and Production)
- SDG 13 (Climate Action)
- SDG 3 (Good Health and Well-being)
- SDG 14 (Life Below Water)
- SDG 15 (Life on Land)
- SDG 5 (Gender Equality)
- SDG 8 (Decent Work and Economic Growth)
- SDG 10 (Reduced Inequalities)
Reconomy's business model contributes to these SDGs through waste reduction, resource reuse, renewable energy use, employee wellbeing initiatives, and community engagement.
Sustainable Products & Innovation
- RecoTek technology hub
- DigitalXchange supply chain integration
- Valpak’s Insight Platform
- ReDress textile solution
Awards & Recognition
- EcoVadis Gold certification
- SBTi approval for climate goals
- Three Green World Awards
- Two International CSR Excellence Awards