Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social

Environmental Achievements

• Achieved on average 25% recycled content in UK manufactured flooring.
• Reduced energy used per metre of flooring produced by 25% from 2000 levels.
• Recycled 96% of water used on site.

Social Achievements

• Operates a totally non-discriminatory employment policy, including consideration of applications from disabled persons and providing training for career development.
• Encourages employee involvement through profit sharing scheme and share option plan.
• Contributed £12,735 for charitable purposes.

Governance Achievements

• Appointed two new directors to the local board in Germany and augmented the sales force with key account managers.

Climate Goals & Targets

Environmental Challenges

• Significant raw material and energy cost increases.
• Increased competitive pressure in the luxury vinyl tile market in Europe.
• Difficult retail market for motorcycle accessories.

Mitigation Strategies

• Added sales volume, mix towards higher value products, and net benefit from the weakness of sterling offset raw material and energy cost increases.
• Concentrated marketing approach to safety flooring and restructuring of German operations to withstand competitive pressure.
• Improved margins in motorcycle accessories operations.

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Polysafe Wood FX
• Polysafe Mosaic
• Kudos range
• Expona range

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• 11% reduction in GHG emissions intensity
• 34% increase in total site waste recycled or repurposed
• 71% more post-consumer waste vinyl recycled back into flooring
• 96% recycled or repurposed waste as a percentage of total site waste

Social Achievements

• 145% increase in new recruits
• 7% increase in female employees
• 43% increase in female managers
• Supported 8 charitable projects, donating nearly £16,000

Governance Achievements

• Achieved BES 6001 Excellent rating for Responsible Sourcing
• Maintained ISO 14001, ISO 9001, ISO 45001, and SA 8000 certifications

Climate Goals & Targets

Environmental Challenges

• Total greenhouse gas emissions increased by 7%
• 24% increase in water usage (due to a water leak)
• 74% of raw material suppliers within a 500-mile radius (target 85%)
• Decreases in ISO certifications among suppliers (ISO 9001, ISO 14001, ISO 45001)

Mitigation Strategies

• Improved energy efficiency (9% reduction in energy intensity)
• Repaired water leak
• Continued focus on sourcing from local suppliers
• Ongoing supplier engagement and improvement initiatives

Supply Chain Management

Supplier Audits: Regular meetings and audits, Quality Assessment Questionnaires

Responsible Procurement

• ISO 9001 and ISO 14001 certified suppliers
• Responsible sourcing policy
• Modern Slavery Act Compliance certification

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: BES 6001 v3.1, ISO 14001, ISO 9001, ISO 45001, SA 8000, BRE Global, GreenTag LCARate, EN 15804, INIES FDES, FloorScore®, Indoor Air Comfort Gold, Afsset

Certifications: ISO 14001, ISO 9001, BES 6001, SA 8000, ISO 45001, BRE A+, GreenTag LCARate, FloorScore®, Indoor Air Comfort Gold, Afsset

Third-party Assurance: CM Environmental

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Loose-lay and click ranges (Fast Track collection)
• Products with PUR for low maintenance
• Products with recycled content

Awards & Recognition

• Made in the North West – Green Company 2015
• Recofloor awards
• Flooring Manufacturer of the Year (CFJ Awards)

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Total GHG emissions reduced by 12,376 KG CO2e
• Direct greenhouse gas emissions (from natural gas) decreased by 4%
• 7% less energy used
• 14% CO2 reduction per flooring tonne delivered
• 98% of total waste recycled or repurposed
• 46% reduction on water usage

Social Achievements

• Labour turnover reduced to 10% - a decrease of 23%
• Increase of 7% female employees and 20% female managers
• Polyflor supported 7 charitable projects, donating nearly £4,800 and raising £415

Governance Achievements

• Obtained BES 6001 ‘Excellent’ rating for Responsible Sourcing

Climate Goals & Targets

Environmental Challenges

• Macro-economic factors affecting supply chains in 2022 resulting in a broader and more geographically diverse supplier base than normal.
• Reduction in stock clearance from distributors.
• Changes in the way distributors operate, with many providing a delivery service to customers post-pandemic.
• Innovations with flooring have meant that less waste is produced during the installation process.

Mitigation Strategies

• Continued work towards increasing the percentage of raw materials sourced within a 500-mile radius.
• Continued efforts to reduce noise pollution and emissions at the Whitefield site.
• Investment in acoustic engineering and new electric forklift trucks.

Supply Chain Management

Responsible Procurement

• Responsible sourcing policy
• Preference for ISO 9001 and 14001 certified suppliers
• Quality Assessment Questionnaires
• Regular meetings and audits
• SA 8000, ISO 45001 and BES 6001 certification for responsible sourcing

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: BES 6001 v3.1, ISO 14001, ISO 9001, SA 8000, ISO 45001, BRE Global

Certifications: GreenTag LCARate, FloorScore ®, Indoor Air Comfort Gold, M1, Afsset, UK REACH

Third-party Assurance: CM Environmental

Sustainable Products & Innovation

• Adhesive-free ranges
• Products with PUR and low VOC certification
• Products with recycled content

Awards & Recognition

• Flooring Manufacturer of the Year (2022 CFJ Awards)
• Made in the North West – Green Company 2015
• Recofloor awards

Environmental Metrics

ESG Focus Areas

• Environment
• Sustainability
• Social Responsibility
• Climate Change

Environmental Achievements

• Reduced carbon footprint across production and logistics (quantified data not provided in the report)
• Harvested rainwater for production since 1915
• Recycled vinyl since 1950
• 100% renewable electricity for UK operations
• Minimized waste to landfill
• Onsite waste collection, segregation, and repurposing team

Social Achievements

• Polyflor Training Academy (27 courses, 275 participants)
• Objectflor Campus (17 courses, 500 delegates + 12 related industry courses, 400 delegates)
• Employee share scheme
• High workforce retention rate
• Support for local charities

Governance Achievements

• Detailed corporate governance disclosures aligned with the QCA code
• Independent audit by BDO LLP
• Remuneration committee overseeing executive compensation
• SA8000 accreditation (decent working environments)
• BS OHAS 18001 accreditation (occupational and safety management)

Climate Goals & Targets

Environmental Challenges

• Escalating energy costs (early months)
• Lack of timely availability of international shipping (early months)
• Increased transportation costs (early months)
• Difficult raw material costs and availability (early months)
• Negative sentiment in the German housing market
• International shipping delays depleting stock holdings
• High freight and product costs in New Zealand
• Underperformance in North Asia sales
• Industrial action by part of the workforce in Radcliffe
• UK energy cost increases
• Disruptions in raw material supplies due to the Ukraine conflict
• Inflationary pressures
• Stock shortages due to reduced stock levels
• Reputational risk associated with PVC use

Mitigation Strategies

• Price increases
• Improved shipping and transportation costs (later months)
• Increased export sales
• Cost focus and mitigation strategies in Objectflor (e.g., withdrawal from exhibitions, reduced headcount)
• New reporting structure in APAC region
• Implementation of a new ERP system
• Cost control measures
• Shift patterns and overtime
• Increased raw material reserves
• Increased storage capacity
• Diversification of raw material suppliers
• Presenting facts and sustainability credentials to mitigate objections to vinyl flooring
• Sourcing 100% renewable electricity

Supply Chain Management

Supplier Audits: Regular evaluation reviews and audits

Responsible Procurement

• Quality, price, sustainability, and health and safety are key considerations in supplier discussions

Climate-Related Risks & Opportunities

Physical Risks

• Extreme heat
• Extreme cold
• Heavy rainfall
• Low river water levels impacting barge transport
• Rough seas impacting shipping

Transition Risks

• Increased demands on business making UK manufacturing difficult or uneconomic
• Increased regulatory demands

Opportunities

• Increased demand for vinyl flooring following climate-related disasters

Reporting Standards

Frameworks Used: TCFD, SECR

Certifications: BES 6001 v3.1, LEED Platinum, WELL Gold, SGBC

Third-party Assurance: Independently verified

Sustainable Products & Innovation

• Dementia friendly flooring

Awards & Recognition

• 2023 Manufacturer of the Year (Polyflor)
• Best use of flooring in a charitable initiative (Polyflor)