Climate Change Data

Environmental Metrics

ESG Focus Areas

• Workforce Health & Safety
• Climate Impacts of Business Mix
• Business Ethics

Environmental Achievements

• Energy saving products sold reduced customers’ energy use by 218 million GJ per year and reduced their CO₂ emissions by 15.8 million tonnes a year.

Social Achievements

• Total incident rate for all employees: 2.9 over three-day lost time injuries per 1,000 employees; Total incident rate for all employees: 1.3 one-to-three-day lost time injuries per 1,000 employees; Fatality rate for direct and contract employees: 0

Governance Achievements

• All employees with an email address completed Anti-Bribery and Corruption training; Group Competition Law Compliance Policy in place; Confidential, multi-lingual, third-party whistle-blowing hotline available.

Climate Goals & Targets

Environmental Challenges

• Difficulty aligning sustainability topics with SASB Standard metrics due to the diversified nature of the business.
• Small scale projects compared to those implied in the Engineering and Construction Services Standard.

Mitigation Strategies

• Reporting against multiple standards in future years or seeking reclassification into a different sector.
• Reporting in line with internal definition of a “large project” (£200,000+).

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB

Environmental Metrics

ESG Focus Areas

• Climate Change
• Biodiversity
• Environmental Improvements
• Sustainable Products
• Supply Chain Sustainability
• Community Wellbeing
• Health and Safety
• Inclusion and Diversity
• Ethical Business

Environmental Achievements

• 6% decrease in scope 1 and 2 emissions (market-based) since 2022
• 52% electricity from renewable sources in 2023
• 8% reduction in Group energy use since 2022
• 13% reduction in water consumption since 2022
• 2% decrease in waste production since 2022
• 14% waste to landfill in 2023
• Reduced boiler pressure and closed valves at Blythewood site, reducing natural gas usage by 44% and saving 322 tonnes CO2e per year.
• Improved energy management at Runnings Road site, reducing energy consumption by over 20% in 2023 compared to 2022.
• Wood waste reduction of 37% at Wuhan site due to pallet reconditioning.

Social Achievements

• 90% colleague participation in biennial Colleague Engagement Survey
• Improved scores in colleague engagement survey related to diversity, community involvement, and work-life balance.
• Launched new learning and development portal, SPARK.
• Launched Group Inclusion Plan, 'Everyone is Included'.
• Introduced permanent Wellbeing Day for all colleagues.
• Hosted inaugural Group-wide Spirit Awards.
• Increased colleague volunteering hours by 16% in 2023 compared to 2022, totaling 25,697 hours.

Governance Achievements

• Validation of net zero targets by the Science-Based Targets initiative (SBTi).
• Migrated Group Essentials training modules to a new software environment.
• 221 senior leaders completed sustainability-related training.
• 51 reports raised globally via whistle-blowing service.

Climate Goals & Targets

Environmental Challenges

• Majority of total emissions are scope 3 emissions associated with the energy use of Electric Thermal Solutions (ETS) products.
• Reliance on electricity grids transitioning to green electricity to reduce emissions associated with ETS products.
• Increased cost of electricity provision and raw materials.
• Potential reputational loss due to association with fossil fuel-reliant systems.
• Carbon taxation and building code regulations.
• Climate change litigation risk.

Mitigation Strategies

• Investing in green energy contracts and solar arrays.
• Implementing power purchase agreements (PPAs).
• Transitioning to electric vehicles (EVs).
• Improving energy management and monitoring practices.
• Developing TargetZero solutions to decarbonise steam generation.
• Implementing net zero roadmaps across manufacturing sites.
• Regular voice of customer research and R&D innovation.
• Strong reputation, innovative product developments, and leading net zero commitments.

Supply Chain Management

Supplier Audits: 931 suppliers in Supplier Sustainability Portal; 76% signed Supplier Sustainability Code.

Responsible Procurement

• Supplier Sustainability Code
• Supplier Sustainability Portal

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Windstorm
• Fire
• Heat stress
• Drought
• Sea level rise

Transition Risks

• Market transition
• Technology transition
• Reputational risk
• Policy and legal transition

Opportunities

• Increased demand for electric heating solutions
• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UNGC

Certifications: ISO 14001, ISO 45001, UNI/PdR 125:2022 Gender Equality Certification (Spirax Sarco and Gestra Italia)

Third-party Assurance: TÜV NORD CERT GmbH

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 13 (Climate Action)
• Goal 15 (Life on Land)
• Goal 2 (Zero Hunger)

Initiatives contribute to these goals through emission reductions, renewable energy use, biodiversity protection, and community support.

Sustainable Products & Innovation

• TargetZero solutions
• BioPure products