Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environmental Sustainability
• Technological Innovation

Environmental Achievements

• Reduced aviation emissions by 61% from 2030 to 2050 under the MIX scenario

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Decarbonizing aviation is challenging due to long aircraft replacement cycles and the lack of viable zero-carbon alternatives to kerosene fuel in the short-term.
• High capital costs of new aircraft designs.
• Slow fleet replacement rate and long investment cycles.
• Lack of certainty about which solutions will become the frontrunners.
• Lack of certainty about hydrogen infrastructure deployment at airports.
• Airlines’ limited capacity to absorb extra costs.

Mitigation Strategies

• Multifaceted approach including technological advancements, market-based measures, and wider use of SAF.
• EU funding for R&D of new technologies for aircraft, ATM, and SAF.
• Increasing production of SAF and hydrogen.
• EU regulatory action for SAF certification and investment in production capacity.
• Expanding the Taxonomy Regulation to include activities such as the sale or lease of more efficient/low-carbon emission aircraft, aircraft manufacturing and technology development, and production, storage and distribution of SAF.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 13 (Climate action)

Initiatives contribute to these goals by reducing greenhouse gas emissions from aviation.

Sustainable Products & Innovation

• Sustainable Aviation Fuels (SAF), electric and hydrogen-fuelled aircraft

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environmental Stewardship
• Social Responsibility
• Governance

Environmental Achievements

• Reduced Scope 1 & 2 emissions by 44%
• Achieved 89% renewable energy sourcing
• Reduced property portfolio
• Increased home-based working contracts

Social Achievements

• Launched STEM programme
• Active DEI forum
• Mental Wellness Week
• Charitable donations of £10,469

Governance Achievements

• Established Group Sustainability Committee
• Appointed Director of Sustainability, Quality and Risk
• Appointed dedicated Group Head of Sustainability
• Complied with UK Corporate Governance Code 2018

Climate Goals & Targets

Environmental Challenges

• Increased voluntary employee turnover due to a recovering labor market
• Supply chain disruptions due to COVID-19 and the war in Ukraine
• Higher supplier costs
• Changing client requirements driven by climate change
• Changes in regulations relating to climate change

Mitigation Strategies

• Focus on enabling meaningful and fulfilling work
• Improved talent acquisition and onboarding processes
• Increased supply chain monitoring and expediting
• Sustainable procurement process and Supplier Code of Conduct
• Proactive risk management processes
• Global operating model for increased efficiencies

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct
• Sustainable procurement policy
• Due diligence checks on new and existing suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Extreme weather events

Transition Risks

• Changes in client requirements
• Changes in regulations

Opportunities

• Growth in environmental services, clean energy, and sustainable mobility

Reporting Standards

Frameworks Used: GRI, SBTi, TCFD, UN Global Compact

Certifications: ISO 14001, ISO 45001, ISO 27001

Third-party Assurance: LRQA

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 9 (Industry, Innovation and Infrastructure)
• Goal 11 (Sustainable Cities and Communities)
• Goal 13 (Climate Action)
• Goal 6 (Clean Water and Sanitation)
• Goal 7 (Affordable and Clean Energy)
• Goal 11 (Sustainable Cities and Communities)
• Goal 13 (Climate Action)

Ricardo's activities contribute to these goals through decarbonised transport solutions, clean energy initiatives, sustainable water management, and climate change mitigation projects.

Sustainable Products & Innovation

• RapidAir® air quality modelling tool
• BusChaRM charger route model
• BIOCCUS community-scale greenhouse gas removal system

Awards & Recognition

• Forbes America’s Best Management Consulting 2021 and 2022
• Bronze award for the Financial Times Sustainability Consultancy of the Year 2022
• European Women in Construction and Engineering Awards 2022 – Best Woman Electrical & Mechanical Engineer
• Toyota Motor North America 2022 Annual Supplier Business Meeting - Excellent Supplier Performance Award

Environmental Metrics

ESG Focus Areas

• Climate change
• Resource efficiency
• Air pollution reduction
• Culture and values
• Safety and wellbeing
• Employment and engagement
• Diversity, equity and inclusion
• Talent development and attraction
• Employees in the community
• Governance structure
• Sustainable procurement
• Modern slavery

Environmental Achievements

• 91% of electricity used is renewable
• Water usage reduced by 13%
• Scope 1 + Scope 2 less than 2% of greenhouse gas emissions
• 35% reduction in Scope 1 emissions
• 16% reduction in Scope 2 location-based emissions
• 77% of revenue related to climate change, environmental benefit, and safety

Social Achievements

• 35% of new joiners were female
• Annual employee engagement score of 3.9/5
• Introduction of a global Employee Assistance Programme
• Creation of a global wellbeing strategy

Governance Achievements

• Modern slavery and sustainable procurement assessments completed
• New Board committee established
• Policies reviewed and refreshed
• Over 90% of supplier assessments by value completed

Climate Goals & Targets

Environmental Challenges

• Increase in Scope 3 emissions due to increased production activity
• Need to reduce waste to landfill and hazardous waste
• Remaining sites require renewable energy availability or landlord agreements

Mitigation Strategies

• Investment in a GHG and other ESG measurement platform (FigBytes)
• Continued office space consolidation and downsizing
• Maximising ‘digital-first’ approach to optimise travel
• Implementing energy efficiency improvements
• Implementing ISO 50001 energy management

Supply Chain Management

Supplier Audits: Over 90% by value

Responsible Procurement

• Supplier code of conduct
• Supplier approval and due diligence process
• Modern slavery risk assessments

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Growth in services connected to climate change and energy transition

Reporting Standards

Frameworks Used: GRI, SBTi

Certifications: ISO 14001, ISO 45001, ISO 50001 (in progress)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 3 (Good Health and Well-being)
• Goal 6 (Clean Water and Sanitation)
• Goal 7 (Affordable and Clean Energy)
• Goal 11 (Sustainable Cities and Communities)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)
• Goal 14 (Life Below Water)
• Goal 15 (Life On Land)

Ricardo's work supports these goals through various projects and initiatives.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Platinum Ecovadis award (Rail segment, Netherlands)
• Silver Ecovadis award (Automotive and Industrial, UK)

Environmental Metrics

ESG Focus Areas

• Climate change
• Environmental sustainability
• People (Employee wellbeing, diversity & inclusion)
• Governance

Environmental Achievements

• Reduced Scope 1 and 2 emissions by 42.8% since 2019
• Reduced Scope 3 emissions by 11% year-on-year in FY 2023/24
• 81% of total electricity from renewable sources in FY 2023/24
• 98% waste diverted from landfill
• 16% reduction in water intensity per employee since FY 2021/22

Social Achievements

• 72% response rate to employee engagement survey (11% increase year-on-year)
• Employee engagement score of 3.81 out of 5
• 39% of new hires were female (3% increase year-on-year)
• 75% decrease in RIDDOR reportable accidents compared to the previous year
• Engaged with over 1,800 young people globally regarding STEM

Governance Achievements

• Updated Anti-Bribery, Fraud and Corruption Policy
• Updated Code of Conduct, Supplier Code of Conduct, Human Rights Policy, Speak Up Policy and DEI Policy Statement
• 90% of suppliers assessed against supplier questionnaire
• Senior management reward incentive linked to GHG emissions reduction

Climate Goals & Targets

Environmental Challenges

• Market challenges across the transport sector, leading to short-term fluctuations in orders for Emerging A&I
• Project disruptions in end markets (Middle East) impacting Energy and Environment margins
• Lower order intake in Performance Products due to completion of major programmes
• Delays in orders for Established Automotive and Industrial
• Increased Scope 3 emissions due to improved measurement capabilities and increased product sales

Mitigation Strategies

• Restructuring initiatives and cost actions in Emerging A&I, including flexible resourcing model
• Consolidation of global water capabilities into a single practice area
• Actions to accelerate the move to flexible resources and reduce the fixed cost base in Established A&I
• Enhanced metal recycling capability (100% recycling of test product transmissions, engines, and machine scrap)
• Improved data collection and calculation methodologies for GHG emissions

Supply Chain Management

Supplier Audits: 90% of suppliers assessed

Responsible Procurement

• Sustainable Procurement Policy
• Human Rights Policy
• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Extreme heat
• Storm surge

Transition Risks

• Regulatory changes
• Market shifts
• Reputational pressures

Opportunities

• Growth in environmental consulting
• Development of new tools
• Market expansion in clean energy and sustainable transport

Reporting Standards

Frameworks Used: GRI, TCFD, UNGC

Certifications: ISO 14001, ISO 45001, ISO 27001, Cyber Essentials

Third-party Assurance: LRQA

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Flexible battery module
• BIOCCUS combined heat and power demonstration plant
• Hydrogen fuel cell propulsion technologies for shipping

Awards & Recognition

• Ecovadis Platinum Award (Rail business in Netherlands)
• Ecovadis Silver Award (A&I UK business)
• IET Excellence and Innovation Future Mobility award
• Reuters Top 100 Innovators in Hydrogen