Climate Change Data

ISG Limited

Climate Impact & Sustainability Data (2021, 2022)

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:8,454 tCO2e/year (normalised)
Scope 1 Emissions:32 tCO2e/year
Scope 2 Emissions:0 tCO2e/year
Scope 3 Emissions:11,547 tCO2e/year
Total Energy Consumption:25,991,094 kWh/year
Waste Generated:166,363 tons/year (non-hazardous)
Carbon Intensity:0.367 tCO2e/£100,000 turnover

ESG Focus Areas

  • Net zero construction
  • Supply chain carbon emissions
  • Circular economy
  • Social value
  • Modern slavery
  • ESG data management system
  • Investment in ESG innovations

Environmental Achievements

  • 4% reduction in greenhouse gas emissions compared to 2020, normalised with turnover (tCO2e/£100,000)
  • 99.0% diversion of construction and demolition waste from landfill (UK)

Social Achievements

  • Achieved a 4.4 out of 5.0 rating on Glassdoor
  • Placed 16th in the Best Companies™ ‘Top 25 Best Big Companies to Work For’ list in the UK
  • Achieved a two-star Best Companies™ employer classification a year ahead of target
  • Renewed partnership with Mental Health UK for a further two years
  • Raised over £150,000 for mental health charities around the world
  • Held first global Pause for Mental Health
  • Increased Net Promoter Score to +84 (2020: +73)
  • Retained industry-leading client satisfaction rate of 89%
  • Created 86 new jobs
  • Engaged with over 4,300 students through learning and careers events
  • Delivered £1.4bn worth of social value for communities across the UK

Governance Achievements

  • Launched four new sustainability policies
  • Increased bonding lines by £71.5m to £381.3m

Climate Goals & Targets

Long-term Goals:
  • Net zero emissions by 2050
Medium-term Goals:
  • Achieving net zero carbon by 2030
  • Aiming for net gain biodiversity outcomes on projects over £20m by 2030
  • All Building Information Modelling (BIM) projects with a level of development over 500 to compile an ISG materials passport by 2030
  • Achieving a Group social value of 50% of turnover by 2030
Short-term Goals:
  • Reducing water consumption by 2024
  • All projects contributing to internal carbon investment fund by 2024
  • Internal ecommerce platform for materials and storage facility by 2024
  • Achieving a Group social value of 25% of turnover by 2024

Environmental Challenges

  • Ongoing uncertainties and disruption caused by COVID-19
  • Supply chain disruptions
  • Project delays and travel restrictions impacting Engineering Services
  • Competitors poaching key employees
  • Lack of externally available training courses
  • Subcontractors and suppliers not meeting obligations
  • Subcontractors and suppliers contravening legislation
  • Failure to manage or deliver key projects
  • Overstretching of supply chain
  • Failure to manage health and safety risks
  • Failure in environmental management
  • Overreliance on key customers
  • Compliance with legal, regulatory and reporting requirements
Mitigation Strategies
  • Investing in measures to reduce creditor days
  • Increased communication with suppliers
  • Focus on larger projects and working with long-term strategic clients
  • Resource planning and robust talent acquisition process
  • PDR process and Smartspace learning and development
  • Global annual employee survey
  • Remuneration linked to performance
  • Controlled approach to contract bidding and selection
  • Regular and detailed project reviews
  • Project audit team
  • Advanced Audit and Assurance (AAA) process
  • Compliance with OHSAS 18001
  • Robust incident reporting and investigation procedures
  • Monitoring work with each customer
  • Regular review of key policies
  • Use of external advisors/consultants
  • Group-wide ‘Code of ethics and business conduct’

Supply Chain Management

Responsible Procurement
  • Regular supply chain forums
  • Increased spend with strategic partners
  • Improved payment times
  • Digitisation of procurement process
  • Sustainable procurement policy and supply chain charter
  • Carbon reporting tool and ESG training

Climate-Related Risks & Opportunities

Opportunities
  • Retrofitting building stock to meet net zero carbon targets
  • Building electric vehicle (EV) charging stations
  • Upgrading forecourts with EV charging capability

Reporting Standards

Frameworks Used: GRI Standards

Certifications: Planet Mark

Third-party Assurance: Avieco (limited assurance)

Awards & Recognition

  • Green Apple Environment Award for Environmental Best Practice
  • Best Inclusion Innovation and Best Industry Contractor (BPIC Awards 2021)

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:17,709 tCO2e/year
Scope 1 Emissions:26,609,733 tCO2e/year
Scope 2 Emissions:2,433 tCO2e/year
Scope 3 Emissions:8,695 tCO2e/year
Renewable Energy Share:60% (UK)
Total Energy Consumption:34,280,915 kWh/year
Waste Generated:58,601 tons/year (UK)
Carbon Intensity:0.50 tCO2e/£100,000 (UK)

ESG Focus Areas

  • Environmental
  • Social
  • Governance

Environmental Achievements

  • 98.6% diversion of construction and demolition waste from landfill (UK)
  • 60% renewable electricity use (UK)
  • 21% reduction in construction waste (UK) (2022: 1.73t/£100,000; 2021: 2.2t/£100,000)

Social Achievements

  • 14th Best Companies™ Top 25 Best Big Companies to Work For list in the UK
  • £457,000 raised for charities worldwide
  • 2,400 apprenticeship weeks
  • £179m additional social and local economic value created

Governance Achievements

  • Gold EcoVadis accreditation
  • 92% of employees completed anti-bribery and corruption training
  • Planet Mark Award for Stakeholder Engagement

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Achieving net gain biodiversity outcomes on projects over £20m by 2030
  • All BIM projects with a level of development over 500 to compile an ISG materials passport by 2030
Short-term Goals:
  • Reducing water consumption (target to be set in 2024)
  • All projects contributing to an internal carbon investment fund by 2024
  • Implementing an online inventory and advertising solution for material reuse (2023)

Environmental Challenges

  • Supply chain disruptions
  • High inflation and increased interest rates
  • Conflict in Ukraine
  • Increased carbon emissions due to a shift in project portfolio
Mitigation Strategies
  • Financial stability of each subcontractor is monitored daily
  • Thorough pre-qualification process before appointing new subcontractors or suppliers
  • Robust management procedures and training for employees and suppliers
  • Mandating the use of HVO to power all ISG projects
  • Due diligence over energy supply contracts
  • Research and trial of alternative low- or zero-carbon fuels

Supply Chain Management

Supplier Audits: 38 suppliers audited in 2022

Responsible Procurement
  • Pre-qualification process
  • Supply chain commitment
  • Sustainable procurement policy
  • ESG risk map

Climate-Related Risks & Opportunities

Physical Risks
  • More extreme weather patterns
Transition Risks
  • Regulatory changes
  • Carbon pricing mechanisms
Opportunities
  • Regulation on energy efficiency
  • Development of new low-carbon products and services

Reporting Standards

Frameworks Used: GRI, TCFD

Certifications: EcoVadis, Planet Mark

Third-party Assurance: Achilles (limited assurance)

Sustainable Products & Innovation

  • Low-carbon retrofit service

Awards & Recognition

  • Major Contractor of the Year (over £500m) at the 2022 Building Awards
  • Delivering Social Value Award at the 2022 Building Awards
  • Gold membership of The 5% Club
  • Planet Mark Stakeholder Engagement award