Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Continued reduction of waste and, where practicable, re-use and recycling of consumables; continued reduction of usage of energy, water and other resources; on-going upgrades to LED lighting; introduction of lighting automation in less used areas such as corridors and toilets; and reprogramming of certain air conditioning and air handling systems to increase efficiency and implement timed shut downs when not required.
• Undertook around 80 projects which either wholly related to sustainability or for which this was a major consideration, and over 200 projects for which sustainability was one of a number of important factors.

Social Achievements

• Made donations to foodbanks and health-related charities local to its sites to support communities facing hardship.
• Implemented a number of measures to assist employees including payment of a monthly fuel and energy contribution from July 2022 to December 2022; a one-off bonus of £500 in January; monthly fuel and energy contribution of £100 for UK employees from July to December; and a one-off payment of £250 in November.

Governance Achievements

• Reviewed and updated its IT security systems and practices and introduced a revised Information Security Policy.
• Appointment of a new Non-Executive Director during 2022.

Climate Goals & Targets

Environmental Challenges

• Economic conditions impacting demand for outsourced services
• Inflationary pressures
• Currency exchange rates
• Financial circumstances of customers
• Geopolitical considerations
• Reputational risk
• Dependence on key personnel
• Technology advances
• Services projects over-run or fail to meet technical milestones
• Market for radio products
• Supply chain risks
• Investment in acquisitions

Mitigation Strategies

• Diversifying exposure across geographical markets; increasing the number of market sectors; diversifying the type of customers; increasing the range of service offerings; and undertaking marketing activities.
• Monitoring energy prices, fixing prices where appropriate and seeking to reduce energy usage.
• Procured a currency exchange instrument to cap the Sterling:US Dollar rate for the R&D Consultancy division until the end of 2023.
• Actively managing customer relationships including credit limits; regular reviews of debtors and overdue payments; and proactive credit control procedures.
• Monitoring energy prices, fixing prices where appropriate and seeking to reduce energy usage.
• Effective Quality Assurance procedures; review meetings with clients; formal customer feedback procedures; and various accreditations.
• Encouraging staff retention through both competitive remuneration packages and a stimulating work environment; providing career opportunities; and regular remuneration reviews.
• Regular identification and review by management of new technical areas for investment; providing a budget for investment by managers in new ideas; encouraging employees to keep up to date on technological developments; and recruiting employees with new technical skills.
• Contracting the majority of projects on a time and materials basis; operating a formal bid review process; incorporating risk premiums into agreements; conducting regular project reviews; and conducting regular, formal project board review meetings.
• Actively monitoring market developments and adjusting material purchases accordingly; managing relationships with customers and manufacturing locations.
• Reducing inventory levels and identifying alternative, cheaper suppliers.
• Establishing an integration team at the time of the acquisition who are rapidly deployed to instil the Group’s financial and operational controls into the acquired company.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events could disrupt global supply chains

Opportunities

• The need to address climate-change related challenges and increase sustainability may provide opportunities for the R&D Consultancy division as clients explore possible scientific and technological solutions.
• Increased focus on sustainability in the chemical and other industries may provide opportunities for the Regulatory & Compliance division.

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Undertook Streamlined Energy and Carbon Reporting (SECR) for the first time, reporting Scope 1, 2, and mandatory Scope 3 emissions from UK operations.
• Disclosed climate-related risk in line with the Task Force on Climate-Related Financial Disclosures (TCFD) framework.
• Achieved a more than 95% reduction in printing requirements associated with shareholder communications.

Social Achievements

• Implemented a new supplier management process to ensure executive management review of proposals to engage new large or business-critical suppliers.
• Ran its second voluntary, anonymous diversity questionnaire for employees in the UK (excluding the CMS2 and TPG Services businesses) and US with a 75% response rate.
• Focused charitable donations on organizations supporting people-related issues, including donations to charities supporting men’s and women’s health issues and to food banks.

Governance Achievements

• Engaged with an external advisor to review its governance arrangements regarding climate-related risks.
• Implemented a new supplier management process.
• Integrated the TPG Services and CMS2 businesses into the Group’s governance model to improve operational and corporate governance.

Climate Goals & Targets

Environmental Challenges

• Economic conditions impacting demand for services
• Inflationary pressures
• Currency exchange rates
• Financial circumstances of customers
• Geopolitical considerations
• Cyber security threats
• Reputational risk
• Dependence on key personnel
• Technology advances
• Services projects over-run or fail to meet technical milestones
• Market for radio products
• Supply chain risks
• Change to government defence policy
• Investment in acquisitions
• Climate related risks and opportunities

Mitigation Strategies

• Diversifying exposure across geographical markets, increasing the number of market sectors, diversifying customer types, increasing service offerings, and undertaking marketing activities.
• Procuring currency exchange instruments to cap the Sterling:US Dollar rate.
• Actively managing customer relationships, including credit limits, regular reviews of debtors, and proactive credit control procedures.
• Monitoring energy prices, fixing prices where appropriate, and seeking to reduce energy usage.
• Ensuring product knowledge, documentation, systems, and data are backed up and replicated in UK offices.
• Enforcing appropriate IT controls, continuously reviewing security, and implementing regular cyber awareness training.
• Having in place Quality Assurance procedures, review meetings with customers, formal customer feedback procedures, and various accreditations.
• Encouraging staff retention through competitive remuneration packages and a stimulating work environment.
• Regular identification and review of new technical areas for investment, providing a budget for investment in new ideas, and encouraging employee training.
• Contracting the majority of projects on a time and materials basis, operating formal bid review processes, and conducting regular project reviews.
• Actively monitoring market developments, focusing on operational efficiencies, and adjusting material purchases.
• Proactively managing inventory levels and identifying alternative suppliers.
• Developing long-term, close working relationships with customers and maintaining current industry knowledge.
• Establishing an integration team at the time of acquisition to instill the Group’s financial and operational controls.

Supply Chain Management

Responsible Procurement

• Regular reviews of key and critical supplier lists, inventory purchasing, and supplier payment terms.

Climate-Related Risks & Opportunities

Physical Risks

• Storm and flood disruption (Portsmouth site)
• Flood & heat disruption in supply chain (Frontier suppliers in Asia)

Transition Risks

• Carbon pricing in operations & value chain
• Reputational risk linked to sustainability performance & reporting

Opportunities

• Market opportunities (increased demand for sustainability-related services)
• Operational opportunities (incremental improvements to resource efficiencies)

Reporting Standards

Frameworks Used: SECR, TCFD

Certifications: ISO 14001 (CMS2 business), ISO 9001, ISO 13485, ISO 27001