Softcat plc
Climate Impact & Sustainability Data (2021-08 to 2022-07, 2023)
Reporting Period: 2021-08 to 2022-07
Environmental Metrics
Total Carbon Emissions:383,581 tCO2e/year
Scope 1 Emissions:229 tCO2e/year
Scope 2 Emissions:334 tCO2e/year
Scope 3 Emissions:383,018 tCO2e/year
Renewable Energy Share:17% of total office electricity consumption
Total Energy Consumption:2,753.9 MWh/year
ESG Focus Areas
- Environmental Sustainability
- Diversity & Inclusion
- Health & Wellbeing
- Volunteering & Charity
- Responsible Supply Chain
Environmental Achievements
- Saved almost a quarter of a million kilograms of IT from landfill.
- Improved CDP rating to B in 2022.
- Maintained EcoVadis Silver status.
- First IT company in Europe to gain SBTi approval for net zero targets.
- 21% of carpool was electric vehicles in 2022 (aiming for 100% by end of 2023).
- 70% of office locations using certified green energy in 2022.
- Marlow offices achieved 94% diversion from landfill in 2022, Bristol 92%.
Social Achievements
- Launched first Diversity & Inclusion report in 2022.
- Ranked 4th in the UK’s Great Places to Work for Women and 3rd in the UK’s Best Workplaces for Wellbeing.
- Won CRN’s Diversity Employer of The Year Award and Cultural Inclusion Award.
- Women represent 33% of workforce.
- Ethnic minority representation within workforce is 15%.
- Launched Women Tech Starter programme, recruiting 18 participants and retaining 95%.
- Became a Disability Confident Employer in 2022.
- Launched company-wide #StrongerTogether Allyship Programme.
Governance Achievements
- Established a Sustainability Committee of the Board.
- Instructed expert sustainability advisors to educate the Board on sustainable development.
- Achieved full TCFD compliance.
- 100% of targeted suppliers signed code of conduct and completed CSR questionnaire.
Climate Goals & Targets
Long-term Goals:
- Zero to landfill (operational waste) by 2030.
- >80% of customers using renewable energy by 2031.
- Reduce scope 1, 2, and 3 emissions by 90% by 2040.
Medium-term Goals:
- 100% of deliverables to be completed using low emission delivery services by 2026.
- >80% of customers purchasing sustainable products or services from Softcat by 2027.
- Suppliers to be using 100% renewable energy across their operations by 2028.
- 45% reduction in gross emissions by 2029.
Short-term Goals:
- Full migration to EV pool cars by end of 2023.
- Renewable energy across all Softcat locations and renewable energy generation project by 2023.
- Major suppliers/partners to have net zero plans by 2024.
- Softcat services to be certified ‘carbon neutral’ (PAS 2060) by 2025.
Environmental Challenges
- Total emissions increased by 54% since 2021 (due to employees returning to the office).
- Scope 3 emissions constitute over 99% of carbon footprint.
- Need to increase profit while minimizing environmental impact.
- Need to improve data collection on waste management.
- Need to develop climate-related performance metrics and opportunity metrics for low-carbon products and services.
Mitigation Strategies
- 10 in 10 plan to support partners, suppliers, and customers in developing carbon reduction plans.
- Invested in credible nature-based programmes to capture carbon.
- Renewable energy purchases to cover 17% of total office electricity consumption.
- Investing in more renewable energy projects by 2024.
- Working with suppliers and vendors to reduce Scope 3 emissions.
- Implementing secure WEEE recycling process.
- Developing more comprehensive methods of data collection to determine progress towards zero to landfill target.
- Working towards full compliance with TCFD.
Supply Chain Management
Supplier Audits: 100% of targeted suppliers completed a CSR questionnaire.
Responsible Procurement
- Supplier code of conduct.
- CSR questionnaire.
- ESG module in Enexo platform.
Climate-Related Risks & Opportunities
Transition Risks
- Suppliers unable to transition to low-carbon economy.
- Carbon-illiterate workforce reducing customer satisfaction.
- New policies and regulations.
Opportunities
- Development of energy-efficient products and services.
Reporting Standards
Frameworks Used: GRI, TCFD
Certifications: ISO 14001:2015, ISO 50001:2018
UN Sustainable Development Goals
- Goal 5: Gender Equality
- Goal 10: Reduced Inequalities
- Goal 3: Good Health and Well-being
- Goal 17: Partnerships for the Goals
Goals guide targeted and ambitious sustainability strategy.
Sustainable Products & Innovation
- Enexo platform
Awards & Recognition
- 5-star SDG Rating
- HP Amplify Impact Awards (5 stars)
- Sustainable IT Solutions Provider of the Year
- Candefero Sustainability Partner of the Year ‘22
- CRN Diversity Employer of The Year Award
- CRN Cultural Inclusion Award
- LGBTQ+ Best Employer Award
- Great Place to Work 2022 (2nd in Super Large category)
Reporting Period: 2023
Environmental Metrics
Total Carbon Emissions:342 + 357,000 tCO2e
Renewable Energy Share:60%
Total Energy Consumption:2.59 MWh
Carbon Intensity:0.22 tCO2e/£m revenue, 0.26 tCO2e/employee
ESG Focus Areas
- Diversity & Inclusion
- Sustainability
- Employee Well-being
- Climate Change
- Supply Chain Sustainability
Environmental Achievements
- Switched company car fleet to all-electric vehicles.
- Installing solar panels at Marlow head office.
- Transitioning energy supply at other locations to renewable electricity.
- Offsetting all Scope 1, 2, and operational Scope 3 emissions for FY2023.
- Achieved 60% renewable energy usage across offices, purchasing renewable energy credits for the remainder.
Social Achievements
- Reached 35% female representation in the workforce (ahead of schedule).
- 36% female representation on the senior leadership team.
- 17% of employees from ethnic-minority backgrounds.
- 92% employee engagement score.
- 97% customer satisfaction.
- Raised £470,000 for charitable causes.
- Launched Connect Learning, a suite of developmental activities for all employees.
- Reduced employee attrition from 21% to 15%.
Governance Achievements
- Formalized capital allocation framework.
- Completed smooth leadership transition.
- Improved Board diversity (57% women, 2 persons of color).
- Increased compliance with TCFD recommendations (9 of 11 disclosures).
Climate Goals & Targets
Long-term Goals:
- Net zero supply chain by 2040.
- 90% reduction in gross emissions (scopes 1, 2, and 3) by 2040 (relative to FY2021).
Medium-term Goals:
- 45% reduction in gross emissions (scopes 1, 2, and 3) by 2030 (relative to FY2021).
- 80% of customers purchasing sustainable products or services by 2030.
Short-term Goals:
- 100% renewable energy by 2024.
- Carbon neutral operations (through offsetting).
Environmental Challenges
- Slowing hardware demand.
- Cost pressures and economic slowdown.
- Supply chain disruptions.
- Customer delaying discretionary spending and applying stricter procurement processes.
Mitigation Strategies
- Continued investment across all functions.
- Maintained investments at a rate equivalent to the previous five years.
- Enhanced cloud proposition with Microsoft Azure and AWS.
- Built security services practice.
- Developed alternative sourcing strategies (implied).
Supply Chain Management
Responsible Procurement
- Working with suppliers to achieve net zero targets.
- Considering sustainability commitments of major suppliers and vendors.
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather events
- Long-term temperature increases
- Rising sea levels
Transition Risks
- Policy and regulatory changes
- Technological changes
- Market shifts
- Reputational risks
Opportunities
- Resource efficiency
- Sustainable technology
- Low-carbon products and services
- Employee upskilling
Reporting Standards
Frameworks Used: TCFD, UN SDGs, FTSE4Good Index Series
Certifications: ISO 14001, ISO 50001, ISO 27001
UN Sustainable Development Goals
- Goal 5 (Gender equality)
- Goal 12 (Responsible consumption and production)
- Goal 13 (Climate action)
- Goal 17 (Partnerships for the goals)
Softcat's initiatives contribute to these goals through diversity and inclusion programs, carbon reduction efforts, and collaborations with stakeholders.
Sustainable Products & Innovation
- Enexo sustainability platform
Awards & Recognition
- Five-star status from HP
- Lenovo ESG Partner of the Year
- Three awards at CRN Women & Diversity in Channel Awards (Cultural Inclusion Award, Health & Wellbeing Recognition Award, Diversity Employer of the Year)
- Bronze Award from Stonewall for LGBTQ+ inclusion
- Ranked 1st in UK's Best Workplaces in Tech, 6th in UK's Best Workplace for Women, and 5th Best Place to Work for Wellbeing by Great Place to Work.