Climate Change Data

Environmental Metrics

ESG Focus Areas

• Responsible business practices
• The value of our services
• Supporting our people
• Managing our supply chain responsibly
• Environmental management
• Investing in our communities

Environmental Achievements

• Reduced carbon intensity (Scopes 1 and 2) by 4.5% annually
• Achieved Carbon Trust Standard for two divisions
• Made energy savings of 28% since 2006
• Recycled 2,700 tonnes of paper

Social Achievements

• Increased overall employee retention rate to 84% (2008: 82%)
• Maintained senior manager retention rate at 88%
• Invested £11.9m in employee training, providing over 4,100 training days
• Launched Capita Managers Academy
• Increased support for getting unemployed people back into work
• Nearly 3,000 employees volunteered, contributing over 9,000 hours
• Raised £440,000 for Macmillan Cancer Support in 2009
• Raised almost £1m for Macmillan Cancer Support over 2 years

Governance Achievements

• All strategic suppliers were reviewed against business standards
• Revised procurement policy and framework issued
• Launched online supplier registration portal
• CR working group met 4 times

Climate Goals & Targets

Environmental Challenges

• Increase in carbon footprint due to growth of Indian operations
• Increase in business travel emissions
• Slight increase in RIDDOR accident frequency rate due to change in employment mix

Mitigation Strategies

• Energy reduction programme
• Increased use of video and teleconferencing
• Targeted campaign to reduce business travel emissions
• Improved health and safety management system

Supply Chain Management

Supplier Audits: 50% of all Group suppliers audited in 2009

Responsible Procurement

• Supplier assessment process incorporating CR
• Revised procurement policy
• Online registration portal

Climate-Related Risks & Opportunities

Awards & Recognition

• NOA Contact Centre Provider of the Year
• NOA Financial Services Outsourcing Project of the Year
• Carbon Trust Standard (two divisions)
• Brand Emissions leader by ENDS carbon

Environmental Metrics

ESG Focus Areas

• Responding to clients’ needs
• Strengthening our culture
• Managing our supplier relationships
• Running a resource-efficient business
• Engaging and supporting local communities

Environmental Achievements

• Energy savings of 39% or 6,750 tonnes of CO2eq since 2006.
• Reduced carbon intensity for UK operations by 3%, and by 1.7% for the overall Group, including India operations.
• Recycled 2,263 tonnes of paper.

Social Achievements

• Successfully managed large-scale employee transfers.
• 71% of employees agreed that Capita was a good place to work.
• Invested £8.3m in employee training, providing over 6,300 days of training.
• Created 600 local jobs in Birmingham.
• Donated £1.25 million to local projects in Birmingham.
• Raised over £1.4 million for Macmillan Cancer Support.

Governance Achievements

• Reviewed and updated code of ethical conduct in light of the UK’s new Bribery Act 2010.
• Maintained a strong structure and control through business reporting processes.
• Implemented robust risk management systems.

Climate Goals & Targets

Environmental Challenges

• Maintaining a consistent Capita culture across various acquired businesses and employee transfers.
• Reducing carbon intensity by 4.5% annually (target not met).
• Managing environmental impacts across over 350 sites.
• Reducing waste and paper use across multi-tenanted buildings.
• Increasing employee response rate in surveys.
• Managing business travel and its environmental impact.
• Data limitations in capturing community investment across the entire Group.

Mitigation Strategies

• Comprehensive set of values embedded across the business.
• Continued efforts to reduce carbon emissions through energy reduction programs and promoting teleconferencing.
• Internal environment management system based on ISO 14001; external accreditation for some operations.
• Group-wide recycling schemes.
• Promoting the survey more widely.
• Investment in video conferencing suites and promoting alternatives to car travel.
• Establishing a network of employees to increase data collection for community investment.

Supply Chain Management

Supplier Audits: 55% of suppliers audited in 2010

Responsible Procurement

• Responsible procurement policy
• Supplier assessment process via online portal

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather affecting travel and office operations

Opportunities

• Development of energy-efficient products and services

Sustainable Products & Innovation

• Cool Workspace (sustainable office design)

Awards & Recognition

• Joint 6th in Carbon Disclosure Leadership Index
• Included in Global 100 Most Sustainable Corporations list
• FTSE4Good Index
• Ethibel EXCELLENCE Investment Register
• Brand Emissions Leader

Environmental Metrics

ESG Focus Areas

• Responding to our clients’ needs
• Engaging and supporting our people
• Building successful supplier relationships
• Running a resource-efficient business
• Investing in our communities

Environmental Achievements

• Achieved Carbon Saver Gold Standard for absolute reduction in carbon emissions over three years.
• Energy savings exceeding £1m since 2006.
• Increased conference calls by 126% and video conference suites to 17 sites.
• Recycled 2,263 tonnes of paper and 25,740 pieces of IT equipment.

Social Achievements

• Launched Capita Community Development Foundation.
• Introduced an official employee volunteering policy with one paid day off per year.
• Created 336 new jobs in Northern Ireland and 140 in Forres, Scotland.
• Supported the High Street Fund, helping small businesses recover from riots.
• Raised £475k for the Alzheimer’s Society.

Governance Achievements

• Reviewed and revised the code of ethical business conduct in 2010 to reflect the UK Bribery Act 2010.
• Annually audited all strategic suppliers against Capita’s standards of business (100%).
• Completed the Carbon Disclosure Project for five consecutive years.

Climate Goals & Targets

Environmental Challenges

• Weaker economic climate impacting some parts of the business.
• Data collection challenges due to shared sites with other tenants.
• Managing large-scale employee integration following acquisitions (e.g., Ventura acquisition).

Mitigation Strategies

• Focus on cost reduction and efficiency improvements.
• Collaborative work with landlords and facilities management providers to monitor and improve environmental performance.
• Dedicated HR integration team to manage employee transitions.

Supply Chain Management

Supplier Audits: 100% of strategic suppliers annually

Responsible Procurement

• Responsible Sourcing Policy

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions impacting employee travel

Opportunities

• New business opportunities in managing business travel for clients (e.g., Capita Business Travel).

Reporting Standards

Frameworks Used: CDP

Awards & Recognition

• Carbon Saver Gold Standard
• Brand Emissions Leader
• Inclusion in Ethibel Excellence Register, Dow Jones Sustainability Index, and FTSE4Good Index.

Environmental Metrics

ESG Focus Areas

• Responding to clients and customer needs
• Engaging and supporting our people
• Building successful supplier relationships
• Running a resource-efficient business
• Investing in local communities

Environmental Achievements

• 13% reduction in carbon emissions from business mileage
• 43% of waste recycled at top 20 waste producing sites
• 25% increase in number of conference calls

Social Achievements

• £14m investment in employee training
• 1,000+ new apprentices
• Launched Group-wide graduate scheme
• £1.8m invested in helping local communities
• 64% of supplier base are SMEs

Governance Achievements

• No material breaches of statement of business principles, anti-bribery and corruption policy, and code of ethical conduct
• Implemented baseline measures for carbon emissions at the Fire Service College

Climate Goals & Targets

Environmental Challenges

• Continued growth through acquisition and contract wins leading to increased emissions
• Increased international operations increasing emissions
• Significant increase in 24/7 call centre operations increasing emissions
• Significant growth in field operations increasing emissions
• Challenges around data collection due to shared buildings
• Managing an ever-growing supply chain
• Improving communications between individual businesses

Mitigation Strategies

• Introduced smart metering in key buildings
• Switched to EC fans in data centers
• Implemented green travel plans
• Capped company car CO2 emissions
• Promoted video and teleconferencing
• Risk-based approach to managing supply chain
• Developed a web-based CR supply chain tool
• Communications strategy review in 2014

Supply Chain Management

Supplier Audits: 100% of strategic suppliers audited

Responsible Procurement

• Responsible sourcing policy
• Category management approach
• Ecovadis auditing

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Flooding

Reporting Standards

Frameworks Used: Carbon Saver’s Gold Standard, Ethibel Excellence Sustainability Index, Dow Jones Sustainability Index, FTSE4Good Index, Euronext Vigeo Europe 120, Euronext UK 20

Certifications: ISO 14001

Sustainable Products & Innovation

• Capita Private Cloud

Awards & Recognition

• Opportunity Now Excellence in Practice Awards - Joint winners of the Female FTSE 100 Award

Environmental Metrics

ESG Focus Areas

• Employees
• Clients and communities
• Environment
• Suppliers

Environmental Achievements

• Reduced total carbon emissions by 11% to 124,329 tonnes CO2eq (scopes 1, 2 and 3)
• Reduced carbon intensity by 21.4% to 15.1 tonnes CO2eq/£m (scopes 1 and 2)
• Reduced business travel by 45% over a two-month period, resulting in £555k cost savings
• Recycled 81% of waste at the 20 largest waste-producing sites

Social Achievements

• Launched the ‘Welcome to Capita’ employee website, enhancing the induction experience for new joiners
• 81% overall employee retention rate
• 98% senior managers retention rate
• Invested £19m in training across the Group
• Total community investment of £2.3m
• Improved staff perceptions, with scores improving for 34 of 58 questions in the employee survey

Governance Achievements

• Developed a new policy detailing the approach and commitment to support the elimination of modern slavery
• 100% of strategic suppliers audited
• Review of procurement across the Group to improve sourcing capability and maximize return on expenditure

Climate Goals & Targets

Environmental Challenges

• Increased carbon emissions for scopes 1 and 2 due to growth of international operations
• Need to improve collaboration between different businesses within Capita
• Need to increase visibility of community investment activity across the business to improve data collection

Mitigation Strategies

• Implemented a new energy reduction programme
• Addressing collaboration issues through improved communication and transparency
• Working to increase data collection on community investment activities

Supply Chain Management

Supplier Audits: 100% of strategic suppliers audited in 2015

Responsible Procurement

• Responsible sourcing policy

Climate-Related Risks & Opportunities

Awards & Recognition

• Most Innovative 2015 (Forbes)

Environmental Metrics

ESG Focus Areas

• Youth unemployment and quality education
• Digital exclusion due to technological developments
• Gender inequality
• Climate change and resource scarcity
• Business ethics

Environmental Achievements

• 5.9% reduction in carbon footprint from 2018
• 18% reduction in emissions from business travel from 2018
• Invested in 100% renewable electricity from solar, wind and hydro-electric in all our managed buildings in the UK, saving 19,000 tonnes CO2 per year
• Installed direct fans in air handling units and switched to LED lighting in Mumbai office, saving 600 tonnes CO2 emissions annually
• Upgraded to LED lighting at our Leek office, saving 20 tonnes CO2 emissions annually
• 45% reduction in nitrogen oxide concentration since the introduction of Ultra Low Emission Zone in April 2019

Social Achievements

• Helped more than 23,000 young people acquire crucial professional skills
• 8,152 employees engaged through our World Mental Health Day activities
• 16,651 hours volunteered in our local communities
• £2.8m invested in our local communities
• 290 people supported to acquire digital skills
• Improved employee engagement (eNPS rose 14 points)
• Enhanced UK family leave policy to pay all primary caregivers 15 weeks’ full pay for maternity, adoption and shared parental leave, and increased paternity pay to two weeks’ full pay
• Paid 97% of suppliers within 60 days

Governance Achievements

• Appointed two employees to its board of directors
• Launched a code of conduct
• Launched a refreshed Speak Up policy
• Increased capability within our central security operations team, published a new cyber security framework and rolled out training to all senior managers
• Achieved Fair Tax Mark accreditation
• Improved ranking in the Hampton-Alexander Review of gender diversity in senior management

Climate Goals & Targets

Environmental Challenges

• Gender pay gap
• Climate change
• Youth unemployment
• Digital exclusion
• Modern slavery in supply chain

Mitigation Strategies

• Investing in activities to reduce gender pay gap (monitoring diversity at senior management levels, setting a 40% target for women’s representation on senior management recruitment shortlists and facilitating career progression through mentoring for high-potential female leaders)
• Aligning to the recommendations of the Task Force on Climate-related Financial Disclosure (TCFD)
• Developing programs to help young people acquire skills (apprenticeships, work experience placements, partnerships with schools and charities)
• Developing a framework for responsible automation and promoting digital skills education
• Publishing a Supplier Charter and conducting environmental and social risk assessments of Tier 1 suppliers

Supply Chain Management

Responsible Procurement

• Supplier Charter

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: UN Sustainable Development Goals

Certifications: ISO 14001 (more than 20 business units)

Third-party Assurance: Corporate Citizenship

UN Sustainable Development Goals

• Goal 3
• Goal 4
• Goal 5
• Goal 8
• Goal 11
• Goal 13

The report details how Capita's initiatives contribute to these goals.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• People
• Community
• Planet
• Operating responsibly

Environmental Achievements

• Reduced absolute Scope 1, 2 and 3 (business travel) greenhouse gas (GHG) emissions 39.77% by 2020 from a 2019 base year.
• Achieved significant energy savings through various energy-efficient projects (LED lighting, air-conditioning upgrades, etc.), resulting in a reduction of 55,219 tonnes of CO2e in 2020 compared to 91,677.27 tonnes in 2019.
• Decreased paper use across UK businesses by 58%.

Social Achievements

• Empowered over 22,000 young people with essential skills for the world of work.
• Supported over 40 schools and around 2,000 young people by donating unwanted furniture.
• Launched Army of One initiative to create a safe and open workplace, empowering colleagues to create better experiences for each other and clients.
• Published UK ethnicity pay gap and ethnicity data for the first time.

Governance Achievements

• Set science-based targets, accredited by the Science-Based Target Initiative (SBTi), to align with a 1.5°C pathway.
• Improved median gender pay gap from 21% in 2019 to 20.2% in 2020.
• Implemented and rolled out Salesforce as a single customer relationship management (CRM) platform.
• Published revised supplier charter strengthening commitments to support small and medium-sized businesses, increase supply chain diversity, and promote supply chain resilience.

Climate Goals & Targets

Environmental Challenges

• Covid-19 pandemic impacting every aspect of operations and stakeholder needs.
• Persisting injustices faced by Black, Asian, and minority ethnic colleagues.
• Climate change and its impact on business operations and supply chain.
• Slow pace of change in reducing gender pay gap.

Mitigation Strategies

• Prioritized colleague wellbeing, moving 85% to work from home.
• Initiated actions to tackle racism and enhance ethnic diversity, including commitments to inclusive culture, sustainable ethnic diversity representation, and education/awareness.
• Set science-based targets for carbon emission reduction and developed plans to achieve net-zero emissions.
• Invested in activities to reduce gender pay gap, including monitoring diversity at senior management levels, setting targets for women's representation on shortlists, and offering enhanced shared parental leave pay.

Supply Chain Management

Responsible Procurement

• Revised supplier charter

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Flooding

Transition Risks

• Increasing environmental legislation and regulation
• Lack of skills required to adapt to a low-carbon economy

Opportunities

• Reduce operational costs and carbon emissions
• Growth opportunities in low-carbon technologies and services
• Build resilience and reduce emissions from the supply chain

Reporting Standards

Frameworks Used: FTSE4Good Index Series, CDP, EcoVadis CSR Assessment, TCFD

Certifications: ISO 14001 (more than 20 business units)

Third-party Assurance: Corporate Citizenship

Sustainable Products & Innovation

• Smart meters
• ULEZ

Environmental Metrics

ESG Focus Areas

• People
• Community
• Planet
• Operating responsibly

Environmental Achievements

• Achieved an 'A' CDP score in 2022 (up from D in 2019)
• Reduced annual carbon emissions by 9.91% in 2022
• Set company-wide 1.5°C science-based carbon reduction targets (verified by SBTi)

Social Achievements

• Launched suicide awareness initiatives and new guidance relating to domestic abuse
• Launched Group menopause procedure and inaugural virtual Menopause Café
• Achieved 98% completion rate for level one and 99% for level two mandatory safeguarding training
• Supported 219 colleagues through SafetyNet initiative
• Improved Wellbeing Index rating to 71% (up 4% from 2021)
• Exceeded 2022 targets for women in senior roles (42% female)
• Exceeded 2022 targets for ethnic diversity in leadership roles (14% ethnically diverse in the UK)
• Recognised as Disability Confident Employer (level two)
• Increased employee engagement index by 9%
• Increased eNPS by 15 points
• Invested approximately £1m in communities
• Planted 3,325 trees in 2022

Governance Achievements

• Established a new ESG Committee on the Board
• Two employee non-executive directors completed their terms, and a new employee director joined the Board
• Launched the inaugural Capita Employee Leadership Council
• Paid 99% of suppliers within 60 days

Climate Goals & Targets

Environmental Challenges

• Cost-of-living crisis impacting employee mental wellbeing
• Decarbonisation of heating systems
• Monitoring and managing emissions reductions from 19,000 suppliers
• Scope 3 emissions

Mitigation Strategies

• Initiated additional programmes to address cost-of-living crisis impact on mental health
• Developed short-term carbon reduction plans and medium/long-term plans for transition to low-carbon economy
• Implemented a new environmental standard and training module for all employees
• Supplier engagement program with ambitious carbon reduction targets (aiming for 55% of suppliers by spend committed to SBTs by 2025, increasing to 85% by 2030)

Supply Chain Management

Responsible Procurement

• Supplier Charter

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: TCFD, SBTi

Certifications: Real Living Wage Employer, Good Business Charter Accreditation, Disability Confident Employer (level two)

Third-party Assurance: Corporate Citizenship

Awards & Recognition

• CDP 'A' score
• EcoVadis Silver Award
• UK Social Mobility Awards 'Leading Light' award
• 100 Best Companies for Women in India
• Exemplars in Most Inclusive Companies Index in India

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Governance
• Employee Wellbeing
• Community Investment
• Supply Chain Responsibility

Environmental Achievements

• Reduced location-based carbon footprint by 37% (from 2019 baseline)
• Reduced market-based Scope 3 (business travel) carbon footprint by 58% (from 2019 baseline)
• Achieved an 'A' CDP score

Social Achievements

• Reduced voluntary employee turnover from 30% to 24%
• Improved employee engagement index from 65% to 67%
• Improved employee net promoter score (eNPS) from -9 to -4
• Improved inclusion index from 74% to 77%
• Improved wellbeing index from 71% to 72%
• Ranked 18th out of 400 global companies on the Forbes list of top employers for women
• Gifted over £800,000 of apprenticeship levy to charities and SMEs
• 21,000 hours of volunteering completed by colleagues (almost three times 2022)

Governance Achievements

• Completed the £500m Portfolio disposal programme
• Extended revolving credit facility to 2026
• Issued £101.9m of US private placement notes
• Reached agreement with pension scheme trustees for no further deficit contributions from 2025

Climate Goals & Targets

Environmental Challenges

• Disappointing free cash flow performance
• High cost base
• March 2023 cyber incident
• High employee attrition
• Withdrawal from UK's real living wage
• Revenue growth lagging behind peers

Mitigation Strategies

• Implemented cost reduction programme delivering £60m annualised savings from Q1 2024
• Identified further efficiency opportunities targeting £100m annualised savings by mid-2025
• Accelerated investment in cyber security
• Implemented employee retention initiatives (induction program, line manager training, increased communication)
• Continued to apply global fair pay principles
• Refreshed responsible business principles

Supply Chain Management

Supplier Audits: 40% of suppliers by spend monitored through EcoVadis

Responsible Procurement

• Supplier charter

Climate-Related Risks & Opportunities

Physical Risks

• Water stress at key operational sites
• Extreme weather events

Transition Risks

• Market shift for low-carbon solutions
• Net zero transition increasing capex and opex
• Stakeholder expectations for climate action

Opportunities

• Growth in low-carbon offerings
• Cost savings from decarbonisation measures

Reporting Standards

Frameworks Used: CDP, TCFD

Certifications: EcoVadis Silver award

Third-party Assurance: SLR Consulting, KPMG

UN Sustainable Development Goals

• Goal 3
• Goal 5
• Goal 8
• Goal 10
• Goal 13

Awards & Recognition

• Forbes Global list of top employers for women (18th out of 400)
• Moving Ahead Most Dynamic Mentoring Organisation of the Year Award
• British Safety Council International Safety Award
• North-East Charity Awards Corporate Charity Partnership award