Climate Change Data

Diploma PLC

Climate Impact & Sustainability Data (2022, 2023, 2024)

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:10,615 tCO2e/year
Scope 1 Emissions:3,256 tCO2e/year
Scope 2 Emissions:7,359 tCO2e/year
Total Energy Consumption:13,947,147 kWh/year
Waste Generated:3,336 tons/year
Carbon Intensity:10.5 tCO2e per £1m revenue

ESG Focus Areas

  • Colleague Engagement
  • Health & Safety
  • Diversity, Equity and Inclusion
  • Supply Chain
  • Emissions and Waste

Environmental Achievements

  • Carbon emissions flat despite 15% organic revenue growth due to business initiatives and investments in facilities
  • Waste measured for the first time

Social Achievements

  • Excellent and consistent colleague engagement score: 79%
  • Increased the diversity of our Senior Management Team (SMT): female representation at SMT increased to 27%

Governance Achievements

  • New Group Diversity, Equity & Inclusion Policy
  • Improved reporting with metrics now embedded, supported by strong governance at Group, Sector and business level

Climate Goals & Targets

Long-term Goals:
  • Net zero emissions across our value chain by 2050 at the latest
Medium-term Goals:
  • 50% reduction of Scope 1 & 2 emissions on FY22 baseline by 2030
  • Less than 15% waste to landfill by 2030
  • 80% of key suppliers aligned with our Supplier Code by 2030
  • Women represent 40%+ of Senior Management Team by 2030
Short-term Goals:
  • 5% year-on-year reduction in LTI rate

Environmental Challenges

  • Supply chain disruptions
  • Inflationary pressures
  • Hospital staffing shortages impacting Life Sciences
  • Challenges in calculating Scope 3 emissions
  • Challenges in collecting waste data due to capacity of local waste haulers, recycling infrastructure, and variance of units
Mitigation Strategies
  • Development of a more structured and proactive approach to supply chain management
  • Pricing initiatives across the Group together with the benefits of our value-added model
  • Incorporating environmental criteria into facility requirements when negotiating or renewing leases
  • Engaging third party expertise (EcoAct) to review Scope 1 & 2 emissions, calculate Scope 3 footprint, and support in submitting net zero targets to the SBTi
  • Working with businesses to improve data collection on waste

Supply Chain Management

Supplier Audits: 578 key suppliers identified, 59% aligned with Supplier Code

Responsible Procurement
  • Supplier Code

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events impacting US facilities
Transition Risks
  • Decline in certain end markets
  • Changing user preferences or a demand for lower-carbon products
Opportunities
  • Improve operational efficiency
  • Deliver value to customers and suppliers by aligning with their net zero ambitions
  • Supply specialized products and solutions to high-growth, low-carbon end markets

Reporting Standards

Frameworks Used: TCFD

Sustainable Products & Innovation

  • ACT's sustainable materials engineering and corrosion control solutions
  • Fuji CAD EYE endoscope utilizing AI technology

Awards & Recognition

  • Feefo Trusted Service Award at Shoal Group
  • A1 award at Techsil
  • Silver EcoVadis award at VSP Technologies

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:8662 tCO2e (Location-based) / 9123 tCO2e (Market-based)
Scope 1 Emissions:3471 tCO2e
Scope 2 Emissions:5191 tCO2e
Scope 3 Emissions:9487 tCO2e
Total Energy Consumption:14,905,885 kWh
Waste Generated:3720 tons
Carbon Intensity:7.2 tonnes CO2e per £m revenue

ESG Focus Areas

  • Colleague Engagement
  • Diversity, Equity & Inclusion
  • Supply Chain Management
  • Health & Safety
  • Climate Action
  • Waste Reduction

Environmental Achievements

  • Emissions intensity reduced from 7.4 to 7.2 tonnes CO2e per £m revenue
  • Waste to landfill reduced from 60% in 2022 to 32% in 2023
  • Scope 1 and 2 emissions intensity reduced from 7.4 to 7.2 tonnes CO2e per £m revenue

Social Achievements

  • Colleague engagement score increased to 80% from 79% in FY22
  • Overall voluntary attrition reduced by 4% (21.7% to 17.7%)
  • Women in Senior Management Team positions increased to 28% from 27% in 2022
  • 73% of key suppliers aligned to supplier code, up from 59% in FY22
  • Partnership with ‘Mentor Mums’ in the UK to support mothers returning from maternity leave
  • Charitable donations across the Group totalled £54,000

Governance Achievements

  • Implementation of Diversity, Equity and Inclusion Policy across the Group
  • Successful delivery of Leadership at Scale Development Programme
  • Continued focus on mental health and wellbeing initiatives

Climate Goals & Targets

Long-term Goals:
  • Net zero across our value chain by 2045
  • Gender parity by 2030
Medium-term Goals:
  • 50% reduction of Scope 1 & 2 emissions on FY22 baseline by 2030
  • 30% reduction of Scope 3 emissions on FY22 baseline by 2030
  • 40%+ women to represent Senior Management Team by 2030
  • Less than 15% waste to landfill by FY30
Short-term Goals:
  • 5% reduction on lost time incident rate (LTI rate)

Environmental Challenges

  • Need to continue strengthening communication ties and ensure colleagues have access to learning and progression opportunities
  • Need to do more to drive diversity across senior team
  • Steady performance against LTI rate undermined by increase in severity of incidents
  • Scope 3 emissions are the most material GHG source for the Group
Mitigation Strategies
  • Every business working to co-create action plans informed by colleague feedback
  • Global Women in Leadership programme to be implemented in FY24
  • Implementation of Diploma 'Stand up for Safety' framework
  • Workshops and enhanced training to ensure strong safety leadership
  • Engagement with suppliers on their emissions initiatives
  • Shifting air freight to lower emission options and selecting road freight partners with electric fleets

Supply Chain Management

Responsible Procurement
  • Supplier Code

Climate-Related Risks & Opportunities

Opportunities
  • Offering more sustainable products and solutions

Reporting Standards

Frameworks Used: SBTi

Reporting Period: 2024

Environmental Metrics

ESG Focus Areas

  • Climate Change
  • Biodiversity
  • Circular Economy
  • Water Stewardship
  • Waste Reduction

Environmental Achievements

  • Achieved net-zero emissions target by 2045 (verified by SBTi)
  • Committed to reduce scope 1 and 2 emissions by 50% and scope 3 by 30% by 2030

Climate Goals & Targets

Long-term Goals:
  • Achieve net zero emissions by 2045
Medium-term Goals:
  • Reduce scope 1 and 2 emissions by 50% and scope 3 by 30% by 2030

Environmental Challenges

  • Scope 3 emissions represent the largest proportion of Diploma’s carbon footprint
Mitigation Strategies
  • Prioritise largest scope 3 categories and product groups
  • Focus on business with the most carbon-intense value chains
  • Define carbon reduction roadmaps
  • Engage with suppliers and implement reduction strategies

Supply Chain Management

Responsible Procurement
  • Partnering with logistics providers committed to environmental sustainability

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Science-Based Targets initiative (SBTi)