Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainable Recycling
• Environmental Protection
• Waste Management

Environmental Achievements

• Opened a state-of-the-art recycling facility in Telford, becoming one of the biggest fridge recyclers in the UK.

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• High levels of fly-tipped white goods (nearly 50,000 reported in England in 2017-2018).
• Inadequate recycling processes at some UK processing plants, leading to release of hazardous gases.
• Public misconceptions about white goods recycling, including what constitutes a 'white good', the cost of recycling, and who is responsible.
• Lack of consumer motivation and understanding of sustainable recycling practices.

Mitigation Strategies

• Investment in own recycling plant to ensure proper recycling.
• Public awareness campaign through this report to educate consumers about sustainable recycling practices.
• Offering a collection and recycling service for £20.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 12: Responsible Consumption and Production
• Goal 13: Climate Action

Initiatives contribute to reducing waste, promoting sustainable consumption and production patterns, and mitigating climate change through responsible recycling practices.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Sustainable Living
• Fair, Equal and Responsible
• Fit for the Future

Environmental Achievements

• Recycled over two million fridges at AO Recycling facility.
• Working with manufacturers to use recycled plastic in new products.
• Close to 90% of electricity used by UK operations is renewable.

Social Achievements

• Achieved market-leading customer satisfaction scores (NPS 86, Trustpilot 4.6/5).
• Launched "Are you AO-K?" mental health program for schools.
• Donated £60k to UNICEF’s Ukraine relief effort and fridges to charities.

Governance Achievements

• Commissioned an externally led materiality assessment.
• Approved six long-term commitments for ESG.
• Established an ESG Steering Committee.

Climate Goals & Targets

Environmental Challenges

• Global supply chain disruption, labor shortages, and cost of living crisis.
• Increased cost of customer acquisition in Germany.
• National shortage of delivery drivers in the UK.

Mitigation Strategies

• Introduced a new employed driver model in the UK.
• Closed German business.
• Conducted a share placing to raise capital (£40m).

Supply Chain Management

Responsible Procurement

• Supplier code of conduct, Modern Slavery Act 2015 compliance.

Climate-Related Risks & Opportunities

Physical Risks

• Increased frequency of power outages at recycling facility.
• Damage and loss of sales due to extreme weather events.

Transition Risks

• Carbon reduction policies, decarbonisation of logistics fleet.

Opportunities

• Increased demand for energy-efficient products.
• Additional income from WEEE take-back and packaging.

Reporting Standards

Frameworks Used: TCFD, UN SDGs

Certifications: ISO 45001 (Recycling), ROSPA Gold (Recycling & Logistics), WEEELABEX (Recycling)

Sustainable Products & Innovation

• New fridges made with recycled plastics.

Awards & Recognition

• What Mobile – “Best Online Retailer”, uSwitch – “Mobile Reseller of the Year”

Environmental Metrics

ESG Focus Areas

• Waste and recycling
• Carbon reduction
• Sustainable products
• Talent, retention and attraction
• Diversity, equality, and inclusion
• Health and safety
• Data protection / cyber security
• Internal governance
• Ethical and resilient supply chains
• Charity and community

Environmental Achievements

• Recycled or reused over 7 million appliances
• Recycled plastic used to mould 1.5 million new fans and accessories
• 10% increase in recycled plastics produced
• Achieved RecyClass accreditation for recycled plastics
• Investment in extruder to enhance plastics refining capability
• 90% of electricity used by operations is renewable
• 10% increase in capacity per vehicle with new semi-trailers
• Continued investment in recycling facility

Social Achievements

• Average employee NPS score of 17 (marked improvement)
• Mid-year pay increases for lower-paid employees
• Above-inflation pay raises across the board
• Improved office environment and tools
• Launched Women in Leadership apprenticeships
• 92% utilization of Apprenticeship Levy contribution
• Reduced labour turnover and increased retention
• Launched initiatives to improve diversity, equity, and inclusion

Governance Achievements

• Renewed Revolving Credit Facility to April 2027
• Improved cyber security posture
• Implemented a GRC tool to enhance internal control environment
• Established a group procurement team and Ethical Supply Chain working group
• Restructured certain areas of risk reporting

Climate Goals & Targets

Environmental Challenges

• Challenging macroeconomic conditions and reduced consumer spending
• Difficult loss-making trading in mobile business
• Challenging mobile phone market with soft consumer demand
• Inflationary pressures on operational costs
• Unpredictable supply chain issues
• Continued unpredictable supply chain issues due to global impacts
• Increased cybercrime
• Potential legislative changes (Extended Producer Responsibility, WEEE Regulations)
• Transitional risks of climate change (increased operating costs)
• Risks posed by Artificial Intelligence (AI)

Mitigation Strategies

• Relentless focus on cost base and reduction of waste
• Driving operational excellence and leveraging vertical integration
• Focus on retail fundamentals (price, availability, delivery)
• Acquisition of affordablemobiles.co.uk and buymobiles.net
• Investing in people through pay increases
• Investing in systems and sustainability initiatives
• Addressing pay challenges for lower-paid colleagues
• Improving office environment and tools
• Annualisation of delivery charges
• Improved gross margin through removal of unprofitable sales
• Operational efficiencies and property rationalisation
• Revised approach to mobile market focusing on customer proposition
• Investment in technology to improve routing efficiency
• New semi-trailers for increased capacity and CNG use
• Outsourcing delivery of smaller products
• Purchase of recycling site
• Investment in extruder for plastics refining
• Partnerships to use AO recycled plastic
• Improved crisis management plan
• Strengthening Information Security team and tools
• Implementation of GRC tool
• Establishment of ESG steering team
• Establishment of group procurement team
• Enhanced supply chain planning and risk modelling
• Building adaption measures and land planning
• Location of sites considering long-term weather impacts
• Highlighting energy saving tool on website
• Including energy savings hints and tips on website and CRM emails
• Highlighting energy efficient products in CRM emails

Supply Chain Management

Responsible Procurement

• Regular meetings with suppliers
• Service level agreements
• Collaboration on sustainability initiatives
• Establishment of central procurement function
• Ethical Supply Chain working group

Climate-Related Risks & Opportunities

Physical Risks

• Increased risk around suppliers' ability to source raw materials
• Transport disruption
• Warehousing space and inventory challenges
• Water scarcity
• Increased costs through building adaption measures
• Unpredictable weather events (floods, high winds)
• Power outages
• Sea level rise
• Reduced water availability
• Heat waves affecting employee well-being
• Disruption caused by extreme weather events impacting logistics

Transition Risks

• Extended Producer Responsibility
• Rights to Repair
• Reputational damage due to failure to act on sustainability trends
• Fleet transformation (increased cost of transitioning to non-fossil fuel fleet)
• Carbon Pricing and legislation

Opportunities

• Increase brand awareness and reputation by demonstrating recycling capabilities
• Extended Producer Responsibility (increased sales and lower cost of compliance)
• Diversification of product ranges (increased demand for air conditioning)

Reporting Standards

Frameworks Used: TCFD, UN SDGs

Certifications: ISO 45001 (AO Recycling), RoSPA Gold (AO Recycling), RoSPA Silver (AO Logistics), RecyClass

UN Sustainable Development Goals

• Not disclosed

AO’s business strategy contributes to a range of UN SDGs

Sustainable Products & Innovation

• Products incorporating recycled plastics

Awards & Recognition

• RoSPA Gold (AO Recycling)
• RoSPA Silver (AO Logistics)
• RecyClass