Climate Change Data

XP Power

Climate Impact & Sustainability Data (2020, 2022, 2023)

Reporting Period: 2020

Environmental Metrics

Carbon Intensity:27.9 tonnes of CO2 per million GBP of revenue

ESG Focus Areas

  • Health and Safety
  • Employee Engagement
  • Diversity and Inclusion
  • Environmental Performance
  • Sustainable Products
  • Ethics and Compliance

Environmental Achievements

  • Shipped “XP Green Power” products in 2020 resulting in estimated lifetime CO2 emission savings of over 117,000 tonnes
  • Reduced CO2 emissions intensity by 7% to 27.9 tonnes of CO2 per million GBP of revenue

Social Achievements

  • Maintained the safety and wellbeing of our people during the COVID-19 pandemic
  • Healthy and safety incident rate per 1,000 employees reduced 8% to 10.4
  • Gallup engagement survey scored 3.91 out of 5.00 (94% participation rate)

Governance Achievements

  • Trained all employees on our Code of Conduct; no reported breaches of the Code during 2020

Climate Goals & Targets

Long-term Goals:
  • Achieve carbon neutrality by 2040
Medium-term Goals:
  • Develop plans to achieve carbon neutrality by 2040
Short-term Goals:
  • Improve Gallup engagement survey score to 4.18 in 2021
  • Reduce CO2 emissions intensity by a minimum of 3% per annum
  • Develop action plans from the results of the Gallup survey to further enhance employee engagement

Environmental Challenges

  • COVID-19 pandemic impact on operations and employee wellbeing
  • Reducing CO2 emissions to achieve carbon neutrality by 2040
Mitigation Strategies
  • Developed plans to achieve carbon neutrality by 2040
  • Implemented comprehensive Employee Assistance Programme (EAP) in Europe and North America (to be rolled out in Asia in 2021)
  • Numerous all hands video meetings to keep employees connected during the pandemic

Supply Chain Management

Responsible Procurement
  • Code of Conduct for suppliers
  • Supplier qualification and ongoing audit programme
  • Disengagement of suppliers not meeting standards
  • Avoidance of conflict minerals

Climate-Related Risks & Opportunities

Opportunities
  • Development of energy-efficient products

UN Sustainable Development Goals

  • UNSDG 3
  • UNSDG 5
  • UNSDG 8
  • UNSDG 9
  • UNSDG 10
  • UNSDG 12
  • UNSDG 13
  • UNSDG 16

The report aligns various initiatives with the specified SDGs.

Sustainable Products & Innovation

  • XP Green Power products

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:682,010 tCO2e
Scope 1 Emissions:561.2 tCO2e
Scope 2 Emissions:6,481.1 tCO2e
Scope 3 Emissions:674,968 tCO2e
Carbon Intensity:2,348.5 tCO2e/£’M (2022)

ESG Focus Areas

  • Climate Change

Environmental Achievements

  • Reduced Scope 1 & 2 emissions by 42% by 2030 from a 2022 baseline; Reduced Scope 1, 2, and 3 emissions by 90% by 2040 from a 2022 baseline; Reduced Scope 3 emissions by 25% by 2030 from a 2022 baseline.

Social Achievements

  • Aligned employees' default pension option with ESG values by switching to Standard Life’s Sustainable Multi-asset Plan.

Governance Achievements

  • Enhanced sustainability governance structure; Board oversight of science-based targets and transition plan; Sustainability Council and Sustainable Development Working Group established.

Climate Goals & Targets

Long-term Goals:
  • Net zero GHG emissions across the value chain by 2040.
Medium-term Goals:
  • Replace backup generators with low-carbon alternatives; Pursue off-site renewable electricity via PPAs; Significant reduction impacts from product innovation.
Short-term Goals:
  • Install more solar panels; Active discussions with largest suppliers to understand their carbon emissions and potential for joint projects.

Environmental Challenges

  • Decarbonization of global electricity grids; Supply chain disruptions; Achieving absolute reductions in emissions with significant business growth.
Mitigation Strategies
  • Collaboration with suppliers and customers; Product innovation (increased efficiency and reduced components); Reliance on IEA's NZE scenario for grid decarbonization; Offsetting for residual emissions in 2040 (potential).

Supply Chain Management

Responsible Procurement
  • Supplier Code of Conduct; Potential incorporation of carbon price mechanism in financial approvals.

Climate-Related Risks & Opportunities

Physical Risks
  • Storm and flood disruption; Supply chain risks
Transition Risks
  • Carbon price impacts; Robustness of local power grid supply; Risk of not meeting net zero target
Opportunities
  • Solar power; PPAs; Reduction of air freight; Legislation on energy efficiency; Electrification; Energy and waste savings

Reporting Standards

Frameworks Used: SBTi, TCFD, GHG Protocol

Certifications: ISO 9001

Third-party Assurance: Interek Assuris (limited assurance)

Sustainable Products & Innovation

  • Greener converters; High-efficiency products; Products with reduced component count.

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:580,881 tCO2e/year
Scope 1 Emissions:549 tCO2e/year
Scope 2 Emissions:6,481 tCO2e/year
Scope 3 Emissions:580,881 tCO2e/year
Renewable Energy Share:99%
Total Energy Consumption:14,376,017 kWh/year
Water Consumption:61,353 m3/year
Waste Generated:592 tons/year
Carbon Intensity:21.9 tCO2e/£m revenue (2023)

ESG Focus Areas

  • Product responsibility (safety and quality)
  • Responsible supply chain
  • Product solutions and innovation
  • Attracting, retaining and rewarding talent
  • Employee welfare
  • Health and safety
  • Ethical conduct and compliance
  • Energy efficiency
  • Waste management
  • Diversity and equal opportunity
  • Emissions

Environmental Achievements

  • Emissions targets approved by SBTi, including net-zero by 2040 and interim targets for 2030.
  • Improved CDP Climate Change score to B rating (from C).
  • Purchased RECs covering ~98% of Scope 2 emissions.
  • Shipped XP Green Power products resulting in estimated lifetime CO2 emission savings of 140,300 tonnes.
  • Launched a new supplier survey covering ESG topics.

Social Achievements

  • Established site representatives for sustainability monitoring and reporting.
  • Created Group Product Responsibility Policy.
  • Published Net Zero Transition Report.
  • Launched the XP Power Women Employee Resource Group (WERG).

Governance Achievements

  • Enhanced TCFD reporting by quantifying the financial impact of climate-related risks and opportunities.
  • Maintained position in the FTSE4Good Index.

Climate Goals & Targets

Long-term Goals:
  • Reach net-zero GHG emissions across the value chain by 2040.
Medium-term Goals:
  • Reduce absolute Scope 1 and 2 GHG emissions by 42% by 2030.
  • Reduce absolute Scope 3 GHG emissions by 25% by 2030.
  • Achieve 25% of site’s electricity needs from solar power in Vietnam.
Short-term Goals:
  • Develop and implement site-specific plans to reduce emissions.
  • Further embed sustainability into strategic decisions.
  • Continue to enhance ISO 14001 coverage.

Environmental Challenges

  • Supply chain disruptions due to industry-wide issues.
  • Scope 3 emissions (99% of total emissions) dominated by products in use.
  • Slow product development and replacement cycles impacting short-term emission reductions.
  • Dependence on global grid decarbonization for achieving net-zero.
  • Increased air freight due to supply chain issues.
Mitigation Strategies
  • Developing site-specific plans to reduce emissions.
  • Embedding sustainability into strategic decisions.
  • Improving ISO 14001 coverage.
  • Developing action plans based on supplier survey results.
  • Updating XP Green Power product classification.
  • Collaborating with suppliers to achieve carbon reductions.
  • Reducing air freight and optimizing packaging and shipping.
  • Reducing business travel and encouraging low-carbon commuting.

Supply Chain Management

Supplier Audits: Ongoing audit program, new supplier survey rolled out to tier 1 suppliers (80% response rate)

Responsible Procurement
  • Code of Conduct
  • Supply Chain Policy
  • RBA Code acknowledgement for next-tier suppliers

Climate-Related Risks & Opportunities

Physical Risks
  • Flood risk (Kunshan, FuG)
  • Tropical cyclones (Gloucester)
Transition Risks
  • Carbon price impacts on value chain
  • Risk of not meeting net-zero target
Opportunities
  • Solar power
  • Purchased renewable energy
  • Reduction of air freight
  • Innovation for lower carbon products
  • Electrification

Reporting Standards

Frameworks Used: GRI, TCFD, SBTi

Certifications: ISO 14001 (at 3 of 12 sites), ISO 9001

Third-party Assurance: Intertek Assuris (Limited Assurance for 2022)

UN Sustainable Development Goals

  • SDG 9
  • SDG 12
  • SDG 13
  • SDG 3
  • SDG 5
  • SDG 8
  • SDG 10
  • SDG 16

The report links each strategic pillar to relevant SDGs.

Sustainable Products & Innovation

  • XP Green Power products

Awards & Recognition

  • Not disclosed