Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Resource Efficiency

Environmental Achievements

• Accoya® window frames assessed as CO2 neutral over full lifecycle
• Use of sustainably sourced FSC® certified wood
• Accoya® is Cradle to Cradle™ Gold certified and Platinum Level for Material Health

Social Achievements

• No lost time incidents in the year
• 19% of employees were female in 2018
• 25% of the senior management team were female

Governance Achievements

• Appointment of Trudy Schoolenberg to the Board as Senior Independent Director
• Strengthened management capability with new appointments in Human Resources and Marketing

Climate Goals & Targets

Environmental Challenges

• Demand outstripping supply for Accoya® and Tricoya®
• Capacity constraints limiting sales growth

Mitigation Strategies

• Completed construction of a third reactor in Arnhem, increasing Accoya® capacity by 50%
• Construction of Tricoya® plant in Hull on track for completion in mid-2019

Supply Chain Management

Responsible Procurement

• Use of sustainably sourced FSC® certified wood

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, Cradle to Cradle™

Certifications: FSC®, Dubokeur®, Svanen Ecolabel, Singapore Green Label

Sustainable Products & Innovation

• Accoya®
• Tricoya®

Environmental Metrics

ESG Focus Areas

• Governance, management and advocacy
• Health and safety
• People and wellbeing
• Innovation and technology
• Fair and ethical conduct
• Sustainable and quality products
• Responsible sourcing
• Energy and climate change
• Ecological footprint
• Society and communities

Environmental Achievements

• Used instead of man-made alternatives, our products saved nearly 70,000 tonnes of CO2e
• Volume sold and sustainable impact increased by 16% year on year to 57,842m3 – resulting in 54,603 tonnes CO2e locked in to our products for decades
• Reduced CO2e intensity by 6% year on year (net emissions from all operations per cubic metre of Accoya® produced)
• Zero waste to landfill
• Accoya® offcut programme developed and attained FSC® Recycled status

Social Achievements

• Launched annual ‘Accsys People Survey’ on engagement and feedback
• Cross-functional projects initiated to review and address Organisational Effectiveness and Performance Management
• Objectives and Key Results (‘OKR’) system and online management platform launched, aligning personal responsibilities to company strategy and success
• Accsys Values refreshed and relaunched to put people and respect at the heart of our enterprise
• Financial and material support for Wood Awards 2020 shortlisted Handlebar Café community charity project

Governance Achievements

• Adopted the QCA Corporate Governance Code
• Reviewed and updated our Supplier Code of Conduct
• Added new expertise to our Executive Committee
• Formed an Executive ESG Committee

Climate Goals & Targets

Environmental Challenges

• Improving data capture, recording, management and reporting processes and resources
• Developing our shared culture, strategy and values across all operations and locations
• Developing efforts towards diversity and inclusion
• Improving our data monitoring, management and reporting methods

Mitigation Strategies

• Forming an Executive ESG Committee
• Introduction of a new performance management system based on objectives and key results
• Improving our global operational oversight and capabilities with new resources and roles
• Implementing improvements to our performance measurement through better tracking of leading and lagging indicators

Supply Chain Management

Supplier Audits: 100% of key materials suppliers met with, visited or audited

Responsible Procurement

• Supplier Code of Conduct
• Compliance with our Conduct, Anti-Slavery and Anti-Bribery and Corruption policies

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, SASB, CDP, DJSI, UN SDGs

Certifications: FSC®, PEFC®, Cradle to Cradle Certified™ Gold

UN Sustainable Development Goals

• SDG 9
• SDG 11
• SDG 12
• SDG 13
• SDG 15

Sustainable Products & Innovation

• Accoya® Color

Environmental Metrics

ESG Focus Areas

• Health and safety
• Climate change
• Responsible sourcing
• People and wellbeing
• Society and communities

Environmental Achievements

• Reduced batch cycle time in manufacturing processes resulting in energy efficiencies
• Accoya recertified to Cradle to Cradle® Gold overall and Platinum for Material Health
• Continued renewal, identification and confirmation of suite of technically valid quality and sustainability accreditations
• Further development of Accoya® offcuts reclamation programme
• Packaging reduction and elimination for Accoya
• Closed-loop recycling of acetic acid

Social Achievements

• Improved Lost Time Incident Rate (LTIR) from 1.8 to 0.5
• 78% response rate to annual employee engagement survey with a focus on inclusion and diversity
• Launched ‘Step out, to help out!’ employee initiative, donating €10,000 to charities
• Introduced new Health & Safety Strategy, HSE Policy and established a Board HSE Committee
• Increased HSE events and communications including first annual HSE day, and monthly HSE scorecard

Governance Achievements

• Continued adherence to QCA Corporate Governance Code
• Internal Board performance evaluation conducted
• ISO 9001, ISO 45001 and ISO 14001 certification action plan developed
• Integration of sustainability principles into procurement practices
• Integration of ESG target into executive compensation

Climate Goals & Targets

Environmental Challenges

• Capacity constraints at Arnhem plant impacting Accoya® sales volume
• Temporary production downtime at Arnhem plant due to fourth reactor installation
• Increased costs and volatility in supply chains due to macroeconomic uncertainty and the war in Ukraine
• Delays in the completion of the Tricoya® plant in Hull and the fourth reactor in Arnhem
• Unexpected delays and defects in equipment during commissioning of the fourth reactor in Arnhem

Mitigation Strategies

• Price increases to offset higher raw material and logistics costs
• Successful capital raises to fund expansion projects and increase working capital
• Refinancing of Group Debt Facilities to simplify debt structure and reduce cost of debt
• Establishment of a new project leadership team and implementation of additional project controls for the Hull plant
• Implementation of remedial work to repair defects in equipment at Arnhem

Supply Chain Management

Supplier Audits: 100% of suppliers screened using social and environmental criteria; 100% of suppliers met with, visited, or audited

Responsible Procurement

• 100% certified sustainable wood sources
• Supplier sustainability requirements

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, SASB

Certifications: ISO 9001, ISO 45001, ISO 14001, FSC®, Cradle to Cradle Certified™ Gold

Third-party Assurance: PwC

UN Sustainable Development Goals

• SDG 9
• SDG 11
• SDG 12
• SDG 13
• SDG 15

Accsys’ business aligns with SDGs 9, 11, 12, 13 and 15, with additional impacts on seven more.

Sustainable Products & Innovation

• Accoya® Color

Awards & Recognition

• 2022 Alliance for Sustainable Building (ASBP) Awards
• US Architectural Product Magazine’s award for product innovation
• 2021 Green Home Awards ‘Best Natural Building Material’
• 2021 Build It Awards ‘Best sustainable technology or product’

Environmental Metrics

ESG Focus Areas

• Climate Change
• Governance
• Responsible Sourcing
• Sustainable & Quality Products
• Health and Safety
• Society & communities
• Energy & climate change
• Ecological footprint

Environmental Achievements

• Increased renewable electricity usage to 63% of total electricity (from 39% in FY22)
• Accoya Color achieved Cradle to Cradle Certified® Gold level
• 60 tonnes of reclaimed Accoya wood re-processed for Tricoya (FY22: 134 tonnes)
• 50,827 tCO2 sequestered in products sold (FY22: 47,838 tCO2)
• Zero waste to landfill

Social Achievements

• Launched Digital Safety Observation cards
• Accsys Health and Safety Month held in February 2023
• Launched ‘Accsys Leadership Club’
• Established an internal working group focusing on Diversity and Inclusion policy
• €72,219 donated to charitable activities (FY22: €20,875)

Governance Achievements

• 13% year-on-year improvement in S&P Global Corporate Sustainability Assessment
• TCFD framework action plan developed
• ISO 9001 Quality Management certification awarded to Arnhem site
• 100% relevant colleagues completed refresher training on anti-corruption policies

Climate Goals & Targets

Environmental Challenges

• Increased Scope 1 and 2 emissions due to Arnhem site expansion and increased production

Mitigation Strategies

• Setting science-based carbon intensity reduction targets
• Streamlining data collection processes
• Assessing impacts in more detail to develop near to longer-term commitments
• Purchasing carbon credits to offset emissions

Supply Chain Management

Supplier Audits: 100% suppliers screened using social and environmental criteria; 100% of new supplier wood mills visited before supply; 81% of wood supply mills visited within three years

Responsible Procurement

• FSC® certified wood sources
• Collaboration with suppliers to improve ESG practices

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, CSA (S&P)

Certifications: FSC® (CO12330), Cradle to Cradle Certified® Gold (Accoya Color), ISO 9001 (Arnhem site)

UN Sustainable Development Goals

• 9
• 11
• 12
• 13
• 15

These areas are where our business can have the most meaningful impacts.

Sustainable Products & Innovation

• Accoya
• Tricoya

Environmental Metrics

ESG Focus Areas

• Sustainable and quality products
• Energy and climate change
• Responsible sourcing
• Innovation and technology
• Ecological footprint
• Health and safety
• People and wellbeing
• Society and communities
• Fair and ethical conduct
• Governance management and advocacy

Environmental Achievements

• Increased renewable electricity usage to 76% of total electricity (FY23: 63%)
• Expanded wood sources to include FSC Certified® Taeda pine
• Reduced steam consumption by 9% in column 1 and 24% in column 2 at Arnhem
• 100% recyclable packaging for Accoya Color
• Accoya re-awarded Cradle to Cradle Certified® Gold level
• Agreement with Eastman to recycle 100% of acetic acid byproduct at Accoya USA
• 91% increase in annual volume (m3) of Accoya offcut reclamation for Tricoya

Social Achievements

• 630,000 working hours completed at Accoya USA with zero health and safety incidents
• Average of 30.5 training hours per employee
• Accoya USA and Arnhem exchange programme
• Introduction of an 'Idea Box' programme to encourage colleague innovation
• Donation of Accoya Color to the National Autistic Society

Governance Achievements

• Qualitative Climate Scenario Analysis conducted and climate risks integrated into governance
• First Climate Disclosures report published
• Became a signatory of the UN Global Compact
• S&P Global Corporate Sustainability Assessment score increased by 5% to 45/100
• Policy review including new Human Rights and Environmental & Climate Change Policies

Climate Goals & Targets

Environmental Challenges

• Lower than expected demand for construction and building materials due to macroeconomic pressures
• Supply challenges limiting market penetration
• Challenging macroeconomic trading environment impacting sales volumes, particularly in Q3
• Increased mix of lower margin sales for Accoya for Tricoya
• Uncertainty over the timing of completion of the Hull Plant

Mitigation Strategies

• Increased investment in sales and marketing, including adding seven new distributors
• Creation of new commercial function integrating sales, marketing and customer service
• Business transformation programme delivering over €3m in annualised savings
• Successful capital raise of €34m
• Improved working capital management
• Exploring alternative wood species for Accoya Color
• Diversification of suppliers

Supply Chain Management

Supplier Audits: 100% suppliers screened using social and environmental criteria; 100% of new supplier wood mills visited before supply; 80% of wood supply mills visited within three years

Responsible Procurement

• Commitment to zero deforestation
• 100% certified sustainable wood sources

Climate-Related Risks & Opportunities

Physical Risks

• Increased intensity and frequency of extreme weather events
• Chronic shifts in climate impacting supply and demand
• Increase in drought periods and water stress

Transition Risks

• Technological risks
• Carbon and energy pricing risks

Opportunities

• Increased demand for low-carbon building materials
• Competitive advantage in sourcing low-carbon raw materials
• Attracting and retaining talent passionate about sustainability

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UNGC

Certifications: FSC® (CO12330), Cradle to Cradle Certified® Gold

Sustainable Products & Innovation

• Accoya
• Tricoya
• Accoya Color

Awards & Recognition

• The Architect’s Newspaper Best of Products award for Accoya Color
• People’s Choice in the Most Innovative Deck or Patio Product Award

Environmental Metrics

ESG Focus Areas

• Sustainable and quality products
• Health and safety
• Fair and ethical conduct
• Energy and climate change
• People and wellbeing
• Governance management and advocacy
• Responsible sourcing
• Society and communities
• Innovation and technology
• Ecological footprint

Environmental Achievements

• Increased renewable electricity usage to 76% (FY23: 63%), including RECs
• Distillation column optimization at Arnhem reduced steam consumption by 9% in column 1 and 24% in column 2
• 100% recyclable packaging for Accoya Color
• Accoya re-awarded Cradle to Cradle Certified® Gold level
• Agreement with Eastman to recycle 100% of acetic acid byproduct, saving 0.87 metric tonnes of CO2 per metric tonne of anhydride
• 91% increase in annual volume (m3) of Accoya offcut reclamation for Tricoya

Social Achievements

• Continued implementation and adoption of Digital Safety Observation cards
• Addition of two modules in management training program: ‘Building High Performing Teams’ and ‘Decision Making’
• Launch of the ‘Accsys Leadership Club’
• Introduction of an Idea Box programme
• Charitable product donations, including Accoya Color to the National Autistic Society

Governance Achievements

• Qualitative Climate Scenario Analysis conducted and climate risks integrated into governance structure
• Accsys became a signatory of the UN Global Compact
• ESG strategy refresh
• Policy review including a new Human Rights Policy and an Environmental and Climate Change Policy
• Continued adherence to QCA Corporate Governance Code

Climate Goals & Targets

Environmental Challenges

• Reducing carbon intensity per m2 of product produced

Mitigation Strategies

• Setting Science Based Targets for reducing carbon intensity by 2030
• Process optimization to reduce energy consumption

Supply Chain Management

Supplier Audits: 100% of suppliers screened using social and environmental criteria; 100% of new supplier wood mills visited before supply; 80% of wood supply mills visited within three years

Responsible Procurement

• 100% certified sustainable wood sources

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UNGC

Certifications: FSC® (CO12330), Cradle to Cradle Certified® Gold

Sustainable Products & Innovation

• Accoya