Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate change
• Resource scarcity
• Social inequality
• Corporate transparency
• Safety
• Wellbeing
• Equality
• Diversity
• Inclusion
• Ethical and corporate governance standards
• Accountability
• Integrity
• Transparency
• Responsibility

Environmental Achievements

• Completed a five-year £175k upgrade project to install 16 modern, fully modulating gas burners, anticipating at least 10% gas savings.
• All electricity used in the UK came from renewable sources; European warehouse in the Netherlands also switched to renewables (9.25% of Group supply).
• UK operations achieved one full year with zero lost time accidents.
• Termo Teknik in Turkey achieved ISO 50001 certification.

Social Achievements

• Improved mean gender pay gap to -1.8% and median pay gap to 2.8% (UK).
• Created five six-month work placements for young people through the UK Government’s Kickstart Scheme.
• Signed up with the UK Government as a Disability Confident employer.

Governance Achievements

• Welcomed new Board members with strong ESG experience.
• Formed a new international working group to oversee the development and implementation of the evolving ESG strategy.
• Undertook a review of existing policies to promote greater consistency between sites.
• Three main manufacturing sites completed an EcoVadis sustainability assessment (UK and Continental sites achieved silver awards).

Climate Goals & Targets

Environmental Challenges

• Increased production in Turkey leading to several lost time accidents.
• Need to reduce steel usage and improve packaging sustainability in the supply chain.
• Challenges in attracting women into technical roles.

Mitigation Strategies

• Focus on long-term downward trend in lost time accident frequency and severity rate in Turkey.
• Encouraging steel suppliers to move towards lower carbon steel and reducing steel usage through design.
• Trials with alternative polythene wrapping with 30% recyclable content.
• STEM initiatives with local schools, colleges and training bodies.

Supply Chain Management

Responsible Procurement

• Encouraging suppliers to use lower carbon steel and recycled materials.
• Reducing steel usage through design.

Climate-Related Risks & Opportunities

Physical Risks

• Disruption to manufacturing or supply chains due to extreme weather

Transition Risks

• Legislative changes in support of decarbonisation

Opportunities

• Supporting the low carbon economy through product development and market opportunities.

Reporting Standards

Frameworks Used: GRI, SASB, SDGs, TCFD

Certifications: ISO 9001, ISO 14001, ISO 45001, ISO 50001

UN Sustainable Development Goals

• Not disclosed

Sustainable Products & Innovation

• Triple panel, triple convector K3 radiators
• Vertical radiators with vertical waterways
• Vento radiator with electrical fan convection
• Fully electric towel warmer and vertical ranges

Awards & Recognition

• EcoVadis silver awards (UK and Continental sites)

Environmental Metrics

ESG Focus Areas

• Decarbonisation of heating
• Raw material impacts
• Greenhouse gas emissions
• Product innovation
• Energy management
• Product packaging impacts
• Employment and skills
• Diversity and inclusion
• Health, safety and wellbeing
• Anti-bribery and corruption
• Labour standards and workers’ rights
• Supply chain human rights

Environmental Achievements

• Increased the proportion of energy from renewable sources from 9.0% in 2021 to 52.2% in 2022, contributing to a reduction in market-based carbon intensity of 61.2%
• First measurement of indirect Scope 3 emissions in the UK
• Reduced annual water usage by 21.8% in the UK site
• Reduced total waste generated by 16.6% to 6,596 tonnes
• Achieved 99.99% waste diversion from landfill
• 17.6% of steel purchases were classified as lower gauge, reducing steel purchases by 1,665 tonnes
• Estimated savings of 1,596MWh per year from fan optimisation in Turkish facility

Social Achievements

• Supplier auditing process established, with 20% of major Group suppliers audited in 2022
• Employee engagement survey completed in the UK, with 92% of employees responding
• Implemented a bi-annual pay review in Turkey and brought forward our salary review in the UK
• Increased training days per employee from 2.1 to 3.1
• Reduced labour turnover rate from 6.2% to 4.9%
• Introduced a Group Code of Conduct Policy and a Group Equality, Diversity and Inclusion Policy
• Implemented an Employee Assistance Programme in the UK

Governance Achievements

• Strengthened sustainability governance with a newly appointed Group Sustainability Manager and a sustainability steering group
• Developed a process for auditing suppliers, covering health and safety, environment, human rights, and ethics

Climate Goals & Targets

Environmental Challenges

• Increased plastic packaging intensity due to product mix changes
• Increased lost time severity rate despite reduced lost time frequency rate, attributed to trainees not following correct procedures in Turkey
• Growing stakeholder awareness of sustainability performance and meeting carbon reduction commitments
• Increased cost of business due to legislation and market dynamics
• Increase in the use of alternative heating technologies
• Increased severity and frequency of extreme weather events

Mitigation Strategies

• Developing an expanded set of sustainability metrics and targets in 2023
• Expanding Scope 3 emissions measurement to all business units
• Investing in renewable electricity generation projects
• Reviewing Group training and development schemes
• Rolling out supplier audit process to all business units
• Implementing improved operator training with detailed work instructions and video recordings in Turkey
• Managing interfaces with major stakeholders to ensure accurate perceptions
• Monitoring legislative changes and developing appropriate responses
• Developing skills and partnerships to understand market changes
• Monitoring legislative changes and assessing their impact on product choices
• Maintaining strong relationships with customers and specifiers
• Implementing reactionary and proactive processes to adapt to extreme weather events
• Sourcing inputs from multiple suppliers across different regions

Supply Chain Management

Supplier Audits: 20% of major Group suppliers audited in 2022

Responsible Procurement

• Supplier auditing process
• Ethical trading policy

Climate-Related Risks & Opportunities

Physical Risks

• Damage or disruption to production facilities
• Supply chain disruptions
• Extreme heat impacting worker welfare
• Drought conditions reducing water access

Transition Risks

• Failure to meet stakeholder sustainability expectations
• Increased cost of business due to legislation and market dynamics
• Increase in the use of alternative technology

Opportunities

• Differentiation of Stelrad's product and service offering

Reporting Standards

Frameworks Used: TCFD

Certifications: ISO 14001, OHSAS 18001, ISO 50001, ISO 45001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• 6
• 7
• 2
• 8
• 9
• 11
• 13

Not disclosed

Sustainable Products & Innovation

• Triple panel, triple convector radiators
• Vento radiator with electric fan convection
• Aluminium radiators
• Fan-assisted towel rails
• Decorative steel tubular products
• Dual fuel ranges

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Decarbonisation of heating
• Energy and carbon
• Upstream lifecycle impacts
• Packaging
• Training and development
• Diversity and inclusion
• Employee engagement
• Employee wellbeing
• Health and safety
• Supply chain management
• Corporate governance and ethics

Environmental Achievements

• Increased the percentage of energy use from renewable sources from 8.7% in 2021 to 41.5% in 2023
• Reduced Scope 1 and 2 carbon emissions by 63% compared to 2021 baseline
• Achieved Scope 3 emission reductions of 16%
• Increased recycled content of packaging material used to 68.1%
• Reduced water usage by 7.1% from 2022
• Reduced waste generated by 13.1% to 7,547 tonnes
• Published first Environmental Product Declarations (EPDs)

Social Achievements

• Reduced lost time severity rate by 15%
• Reduced all safety incidents by 7%
• Increased training days per employee to 2.9

Governance Achievements

• Expanded supplier auditing process across all business units
• Developed additional sustainability-related policies (sustainable procurement, environment, information security, anti-corruption and bribery)
• Improved EcoVadis ratings across all manufacturing sites

Climate Goals & Targets

Environmental Challenges

• Increased plastic packaging intensity due to changes in product and production locations and increased transit distance
• Market-driven production volume reduction impacting absolute emissions
• Comparatively higher LTFR in Italy compared to other Group sites
• Need to further develop long-term, absolute carbon reduction targets aligned with climate science

Mitigation Strategies

• Developing an action plan for packaging changes to improve key packaging metrics
• Focusing on reducing the impact of steel purchased through reducing operational carbon emissions, investing in manufacturing processes, and using more renewable energy
• Integrating Radiators SpA into Group safety processes and identifying opportunities for future improvement
• Quantifying the financial impact of, and exposure to, climate-related risks and opportunities

Supply Chain Management

Supplier Audits: 64.3% of key suppliers audited

Responsible Procurement

• Sustainable procurement policy covering human rights, labour standards, environment, energy and carbon, materials and resources

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events causing damage or disruption to production facilities and supply chains

Transition Risks

• Failure to meet stakeholder sustainability expectations
• Increased cost of business due to legislation and market dynamics
• Increased use of alternative technology

Opportunities

• Differentiation of Stelrad’s product and service offering

Reporting Standards

Frameworks Used: GHG Protocol, TCFD, SASB

Certifications: ISO 45001

Sustainable Products & Innovation

• Green Series radiators using low-carbon steel
• Electric radiators