Card Factory plc
Climate Impact & Sustainability Data (2023, 2024)
Reporting Period: 2023
Environmental Metrics
Total Carbon Emissions:5370 tCO2e/year
Scope 1 Emissions:728 tCO2e/year
Scope 2 Emissions:4642 tCO2e/year
Total Energy Consumption:26,100,686 kWh/year
ESG Focus Areas
- Reduction in carbon footprint
- Waste and sustainability
- Diversity, equality and inclusion (DE&I)
- Colleague and social mobility
- Charity and community
Environmental Achievements
- Printcraft manufacturing facility lighting switched to LED, reducing electricity consumption by 206,589 kilowatt hours per year (equivalent to 39.95t CO2e)
- Moved further product manufacturing, including money wallets, from Far East to UK
- Recycled 703.4kg of foil balloons and banners from stores through TerraCycle
- All new cards sold from April 2022 are 100% recyclable
- All new wrap sold from the end of FY24 will be 100% recyclable
Social Achievements
- Launched career pathways, providing a framework for colleagues to navigate and understand their career options
- Retail manager colleague retention improved following the re-organisation of the retail part of our business
- Developed interventions to support colleague financial, mental and physical wellbeing
- £523,940 raised for Macmillan Cancer Support
- Sale of boxed Christmas cards generated £125,000 in donations for four UK charities
Governance Achievements
- Refreshed our DE&I strategy with an annual review to ensure it remains aligned to requirements
- Relaunched our values to all colleagues
- Completed the review of our cardfactory values, following extensive consultation with colleagues
Climate Goals & Targets
Long-term Goals:
- Net Zero emissions by 2040
Medium-term Goals:
- All new bags and card boxes to be 100% recyclable by end of FY25
- Move all paper party products to be FSC-certified by end of FY25
Short-term Goals:
- Remove single-use plastic packaging from 90% of our products by year-end
- Remove glitter from all products by year-end
- Reduce in-store, point-of-sale poster volume materials by 50% by year-end
Environmental Challenges
- Failure to meet requirements of institutional investors, customers and other stakeholders when it comes to ESG requirements
- Failure to anticipate and adapt to changes in customer preferences and shopping habits
- Failure to manage and promote the brand which could result in loss of market share
- Undergoing a design and phased implementation of a new ERP systems to replace aging core IT infrastructure
- Unsupported and legacy software, some of which is subject to material tailoring, requires ongoing support to maintain functionality and significant transactional volumes
Mitigation Strategies
- An ESG strategy has been devised with five key work streams
- Broader delivery of the overarching commercial strategy must ensure continual adaptation to changing customer preferences
- Brand strategy is in place which fully articulates cardfactory brand proposition
- Key aspects of this plan include developing an omnichannel customer experience
- The IT strategy implementation includes ongoing specialist support for legacy systems and migration to new systems
Supply Chain Management
Supplier Audits: 100% coverage
Responsible Procurement
- Ethical audits
- SMETA
- BSCI
- SA8000
- SEDEX
- FSC® certification
Climate-Related Risks & Opportunities
Physical Risks
- Increased flooding risk
Transition Risks
- Regulatory changes
- Changes in consumer behavior
- Increased energy costs
- Limited helium supply
Opportunities
- Development of energy-efficient products
- Increased demand for FSC certified raw materials
Reporting Standards
Frameworks Used: TCFD
Certifications: FSC®
Third-party Assurance: KPMG LLP
Sustainable Products & Innovation
- 100% recyclable cards and wrap
Awards & Recognition
- Number one Best Big Retail Business to Work For
- Third Best Big Company to Work For in the UK
Reporting Period: 2024
Environmental Metrics
Total Carbon Emissions:76,762 tCO2e (FY22)
Scope 1 Emissions:1,251 tCO2e
Scope 2 Emissions:5,539 tCO2e
Scope 3 Emissions:70,915 tCO2e
Total Energy Consumption:28,644,196 kWh
ESG Focus Areas
- Climate
- Waste and Circularity
- Protecting Nature
- People & Equity
- Governance
Environmental Achievements
- Removed single-use plastic from 90% of own-label products and packaging
- Eliminated plastic-based glitter from all products
- Reduced in-store point-of-sale poster volume materials by 50%
- All new gift wrap is now 100% recyclable
- Woodland Trust partnership expanded to plant 25,105 native trees
Social Achievements
- Named fifth ‘Best Big Company to Work For’ in the UK by Best Companies
- Secured 10% improvement on ‘fair deal’ ratings, reflecting colleagues’ experience of reward, pay and benefits
- Donated £518,078 to Macmillan Cancer Support
Governance Achievements
- Launched ‘Delivering a Sustainable Future’ plan
- Completed Scope 1, 2 and 3 emissions assessment
- Completed refresh of materiality assessment
Climate Goals & Targets
Medium-term Goals:
- Achieve Net Zero emissions by 2050
Short-term Goals:
- Reduce absolute Scope 1 and 2 GHG emissions by 54.6% by 2033
- Reduce Scope 3 emissions by 61.1% by 2033 on an economic intensity basis
Environmental Challenges
- Supply chain reliance on imports from the Far East
- International strategy increasing carbon footprint
- Managing legacy stock and waste
- Increased demand for FSC-certified materials
- Consumer preference for sustainable products
- Levies and surcharges for packaging and GHG emissions
- Increasing energy costs
- Limited supply of helium
- Increased extreme weather events impacting supply chain
Mitigation Strategies
- Increasing UK card production capacity at Printcraft
- Incorporating ESG factors into international growth plans
- Improved processes to minimize legacy stock risk
- Innovation in artificially grown pulp
- Increased communication around ESG targets and strategy
- Reducing waste and GHG emissions
- Potential corporate power purchase agreement
- Innovation on alternative product ranges and balloon filling components
- Annual reviews of risk and impacts of extreme weather
Supply Chain Management
Supplier Audits: No audit, no order policy
Responsible Procurement
- Ethical audits (SMETA, BSCI, SA8000), technical audits, FSC certification, compliance with Anti-Bribery and Corruption laws, Modern Slavery Act
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather events
Transition Risks
- Regulatory changes, increased costs
Opportunities
- Increased UK card production, renewable energy transition, development of sustainable products
Reporting Standards
Frameworks Used: TCFD, GRI, SECR
Certifications: FSC
Sustainable Products & Innovation
- Products with reduced single-use plastic, biodegradable glitter
Awards & Recognition
- 5th Best Big Company to Work For