Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• People
• Communities
• Governance

Environmental Achievements

• Assessed, prioritized and started working on the mitigation of environmental risks in alignment with the Task Force on Climate-related Financial Disclosures (TCFD)
• Rolled out the RWS Green Agenda intranet across the entire group
• Held four group-wide environmental awareness programmes
• Developed a network of environmental champions across our offices
• Moved to purchasing only renewable electricity across all offices wherever possible
• Replacing existing lighting with energy efficient LED lighting
• Installed a building management system (BMS) monitoring tool in our Brno office

Social Achievements

• Ran a group-wide engagement survey with an 81% response rate and 80% favorable scores
• Established dedicated group-wide pillars in Culture, Ethnicity, LGBT+, Persons with Disabilities, Well-being, and Women at RWS
• Increased capacity within the Talent Acquisition Centre of Excellence
• Developed an agile work policy
• Reviewed and increased salary bandings in high attrition geographies
• Invested in scaling our online learning platform, MyLX
• Continued to invest in building a culture of diversity, inclusion and belonging
• Launched a new well-being portal

Governance Achievements

• Became a signatory to the Task Force on Climate-related Financial Disclosures (TCFD)
• Joined the United Nations Global Compact Initiative
• Submitted our first Communication on Progress report
• Adopted the QCA Corporate Governance Code
• Achieved ISO 27001 certification for many products, services, and supporting people, processes, and technology
• Established a single central recruitment Centre of Excellence
• Developed a comprehensive group-wide talent review process
• Launched its new Supplier Code of Conduct

Climate Goals & Targets

Environmental Challenges

• Impact of Covid-19 pandemic on operations and travel
• Integration of SDL plc
• Attracting and retaining talent in a challenging global labor market
• Currency fluctuations
• Climate change and natural disasters
• Cybersecurity threats
• Legislative and regulatory changes
• Data security risks

Mitigation Strategies

• Work from home policies
• Detailed integration plan for SDL plc
• Increased capacity in Talent Acquisition, agile work policy, flexible geographical hiring, salary increases, internal mobility, investment in MyLX platform
• Currency analyses and transactional hedging measures
• Review of global office network, business continuity plans, relocation of offices, carbon emission reduction initiatives
• Robust information security management system, penetration testing, security awareness training, 24/7 detection and response capability
• Risk management process, monitoring of legislative changes, diversification of revenue streams
• Risk-based approach to data security, robust security controls, regular external and internal validation

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct
• Prompt Payment Code

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Flooding
• Rising sea levels
• Fires

Transition Risks

• Policy and regulatory changes
• Green business taxes

Opportunities

• Moving to more efficient buildings
• Improvements in energy and transport fuel efficiencies
• Increased demand for goods and services

Reporting Standards

Frameworks Used: SASB, TCFD, UNGC

Certifications: ISO 9001, ISO 17100, ISO 13485, ISO 18587, ISO 21500, ISO 27001, ISO 14001

Third-party Assurance: Carbon Footprint Ltd (for GHG emissions)

UN Sustainable Development Goals

• Not disclosed

Our commitment to sustainability is channelled through specific goals which underpin our actions, operations and reputation and are aligned with the United Nations’ Sustainable Development Goals (SDGs).

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Best use of AIM at the 2021 AIM Awards

Environmental Metrics

ESG Focus Areas

• Climate change
• Diversity & Inclusion
• Governance
• Community Investment
• Employee wellbeing

Environmental Achievements

• Expanded Scope 3 indirect carbon scope with the aim of setting science-based targets using FY22 as a baseline
• Achieved a B score in CDP ratings

Social Achievements

• Launched Group-wide Code of Conduct & associated mandatory training (98% completion rate for FY22)
• Employee engagement survey –85% participation (FY21: 81%); 69% engagement score
• RWS Campus –successful Africa expansion and amalgamation with Trados Academic Partner Programme: Relationships with >700 universities globally, delivering either technology support or internships; 1/3 of interns are offered full-time roles after completing their degrees
• RWS Foundation reconstituted; external relaunch in early 2023
• Developing full partnership with Clear Global (Translators without Borders)

Governance Achievements

• Board appointments –Julie Southern and Candy Davies
• General Counsel & Company Secretary –Jane Hyde
• Awarded Silver Medal by EcoVadis –positioned in top quartile of companies participating in its programme; placed in top 10% of companies in relevant industry category

Climate Goals & Targets

Environmental Challenges

• Reduced activity with some major technology clients
• Lower revenue in Eurofile segment due to the impact of the forthcoming introduction of Unitary Patent (UP)

Mitigation Strategies

• Improved sales effectiveness will support IP Services through Unitary Patent impact
• Pricing programme is aiming to mitigate cost inflation impact
• Well-placed for recovery in medium-term for reduced activity with some major technology clients

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: EcoVadis

Awards & Recognition

• Silver Medal by EcoVadis

Environmental Metrics

ESG Focus Areas

• Corporate Behaviour
• Ethical Standards
• Client Service
• Employer of Choice
• Environmental Performance
• Socially Responsible Supplier Programme
• Community Contribution

Environmental Achievements

• Implemented Environmental Management System (EMS) compliance to ISO 14001 requirements at 40% of its business by headcount

Social Achievements

• Active programme of charitable support to charities proposed by employees
• Actively promote foreign language learning through school and university partnership programmes

Governance Achievements

• CEO receives information on corporate sustainability performance, assesses future risks and opportunities, develops strategy, and disseminates to all employees
• Accountability for managing operating risks is clearly assigned to line management

Climate Goals & Targets

Supply Chain Management

Responsible Procurement

• Expecting similar environmental standards from all supply chain, both upstream and downstream

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Global Compact

Certifications: ISO 14001

Environmental Metrics

ESG Focus Areas

• Sustainability
• Environmental
• Social
• Governance

Environmental Achievements

• Improved accuracy of carbon footprint by improving data collection and Greenhouse Gas emissions to include both operations and supply chain. Committed to setting carbon reduction targets aligned with the Science Based Targets initiative (SBTi).

Social Achievements

• Further improvement in voluntary colleague attrition rate to 11.9% (FY22: 15.9%). Launched ‘Ambassador Awards’ colleague recognition programme.
• Continued support for colleagues impacted by the ongoing conflict in Ukraine and the earthquake in Türkiye and Syria.
• Improved employee engagement survey response rate to 84% (FY22: 85%)

Governance Achievements

• Appointed Candida Davies as Group’s Chief Financial Officer and Jane Hyde as General Counsel and Company Secretary.
• Successfully managed the impact of a cyber incident.

Climate Goals & Targets

Environmental Challenges

• Challenging market environment with reduced client activity in several end markets and ongoing price pressure.
• Macroeconomic challenges and higher cost of capital through increased market interest rates resulted in a non-cash exceptional goodwill impairment charge of £62.4m.

Mitigation Strategies

• Delivered a run rate £25m cost savings to support FY24 profitability.
• Effective cost control, including implementation of significant cost actions and migration of translation volumes through the Language eXperience Delivery (LXD) platform.
• Foreign exchange gains of £13.0m from the Group's hedging programme.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Global Compact

Sustainable Products & Innovation

• Evolve (AI-powered translation capability)