Environment

Developing our environmental strategy

Sustainability is essential across our businesses, and it is important that our colleagues support our environmental strategy. Our approach to environment and sustainability as a whole is included in the new starter induction process, and where possible, the Environment and Sustainability Manager attends corporate induction sessions to answer any questions colleagues may have. This initiative ensures that each new employee is equipped with the knowledge and values needed to contribute to our environmental goals. The establishment of the Environmental Steering Group in February 2023 has been an integral part of our environmental strategy. Chaired by our CEO, and reporting directly into the Board, this group acts as a vital link throughout our organisation by monitoring our targets and facilitating the alignment of our business practices with those objectives, based on internal assessments of materiality and prioritisation of topics impacting the business. These include embedding the Environmental Steering Group within the Group’s governance structure, the development of an environmental policy statement, introduction of Green Teams at all Carr’s Group sites, and environmental awareness training throughout the Group. These objectives are continually reviewed and developed.

Environmental Steering Group

The Environmental Steering Group meets monthly and assesses the Group’s performance by reviewing progress against agreed actions and providing advice to the Board in support of the development of strategy and management of risk. The Environmental Steering Group comprises managing directors, and senior leaders from various departments including HR, Procurement, Health & Safety, Communications, Production, Finance, and representatives from the Green Teams. The Environmental Steering Group is facilitated by the Group Environment and Sustainability Manager, and addresses micro and macro factors that impact the Group and help to develop strategy. The Environmental Steering Group is supported by Green Teams which have been established at all the Group’s operational sites.

The Green Teams

Our Green Teams are responsible for considering resource efficiencies together with the environmental and social impacts of our business at a local level. They have been crucial in promoting sustainability and advocating and implementing sustainable practices across our businesses. Their dedication and voluntary efforts highlight the Group’s collective commitment to environmental stewardship. These teams meet monthly to discuss and implement eco-friendly initiatives, and produce newsletters to keep colleagues informed about the latest developments. Green Team Manager meetings are held on a quarterly basis to collaborate on projects and celebrate success. The individual site Green Teams also inform and update the Environmental Steering Group at the monthly meetings.

Progressing our Environmental Strategy

In addition, Green Teams initiatives implemented at some of our sites have included the adoption of Voltage Optimisation and ESOS (Energy Savings Opportunities Scheme) updates to increase energy efficiency; transitioning to more sustainable, and where
possible, biodegradable packaging and increasing the use of reusable plastic pallets to minimise waste.

Training has also been developed during FY23. In addition to environment and sustainability being included in the new starter induction process there has also been increased training on environmental matters such as environmental spill, waste management and tracking of waste. 5S training has also been implemented at two of the Engineering sites, with a view to expanding this across the remaining sites to enhance workplace efficiency and safety.

Our commitment to sustainability and environmental responsibility extends to regular site audits that assess our performance against established environmental standards. These ongoing audits are undertaken internally during site visits by the Group Environment & Sustainability Manager and include areas of audit such as the management systems in place, waste control, emergency spill preparedness, energy and environmental training. External audits are carried out primarily within the Engineering division against the environmental standard ISO14001, the health and safety standard ISO45001 and various other engineering standards along with ISO9001 (quality standard). Both internal and external audits serve as important tools for identifying areas of improvement and maintaining our compliance with environmental regulations.

To assist in capturing data on the progress of our environmental strategy during FY23 we also:
• Introduced a carbon reporting platform which enables us to comprehensively understand and manage our carbon footprint across the entire Group, providing valuable insights into our emissions and allowing us to make informed decisions about carbon reduction strategies.

• Supplied environmental data to the Carbon Disclosure Project (“CDP”) which is important for organisations aiming to achieve transparency, accountability, and effective risk management in their environmental practices. This ensures compliance with regulations and helps to build investor confidence. This was the first year of reporting for the Group and demonstrates our commitment to transparent reporting on climate related matters.

• Introduced a budget control platform for energy which allows the Group to optimise energy costs, fostering responsible energy consumption and a more sustainable future.

Measuring scope 3 emissions

In line with our commitment to reducing our indirect impact on climate change, Carr’s are collaborating with World Kinect Energy Services™ in developing a scope 3 indirect measuring function on their supply chain monitoring system. This system will enable us to track emissions across the supply chain, contributing to the Group’s overall sustainability goals and is already in place to record scope 1 and 2 emissions, along with direct scope 3 emissions.

Looking forward

FY23 has seen significant progress on the Carr’s Group environmental journey. Through strategic initiatives, the dedication of colleagues across the Group, and the implementation of reporting mechanisms, we have further developed and strengthened the Group’s strategy and will continue on that path of sustainable improvement. We have a target of 3.4% energy reduction year on year which will result in achieving Net Zero by 2050.

As mentioned above, in 2023 we submitted questionnaires to the CDP. We are already preparing for our second-year submission, which will also include the climate change questionnaire. This ongoing commitment to transparent climate-related reporting reaffirms our dedication to sustainability and accountability.

In FY24 there will be a focus on measuring Scope 3 emissions. This involves evaluating various aspects of our operations, including hotels, air travel, and strategic suppliers. By expanding our attention beyond direct emissions, we aim to address the broader spectrum of our carbon footprint and implement sustainable practices. The Green Teams will be investigating employee commuting patterns, enabling us to quantify and analyse the associated carbon emissions. Through this initiative, we aim to identify opportunities to reduce the carbon footprint linked to colleague commuting, contributing to our overall sustainability objectives. We will be continuing to explore options to enhance our packaging practices. This involves a thorough examination of packaging alternatives that can minimise our carbon footprint. By adopting eco-friendly packaging solutions, such as the Biotub® containers, we aim to align our operations with environmentally conscious practices and reduce the environmental impact of our products and services.

We will be undertaking initiatives to improve energy efficiency, as highlighted in our participation in the ESOS reporting. This includes exploring measures such as Voltage Optimisation and KVA analysis to optimise energy usage and reduce our overall energy related emissions.