Accountability

Energy and carbon reporting

The complete requirements for reporting of greenhouse gas emissions, energy consumption and energy efficiency actions included in the Companies Act 2006 (Strategic Report and Directors’ Report) Regulations 2018 (the Regulations), can be found on page 77 of our FY2024 Annual Report and Accounts.

Reporting and baseline year

We have aligned our reporting and fiscal years, so the information presented covers the FY2024 period from 1 May 2023 to 30 April 2024. Following the introduction of FMG RS emissions data in FY2021, FY2022 was considered a suitable year to establish as our baseline year.

1. FY2023 Scope 1 data has been recalculated in line with a refined methodology to calculate vehicle-related emissions used in FY2024 to ensure comparability between each year.
2. Market based values were not split by country in years prior to FY2024.
3. The intensity ratio was calculated using location-based Scope 2 emissions of 19,014 (2023: 22,356) to ensure consistency with previous years.

Scope 1 and 2 Analysis

New, more efficient ICE vehicles and an increasing proportion of EV and hybrid vehicles entering our fleet, along with a reduction in the distances travelled by our vehicles in the UK, have resulted in a 15% overall reduction in Scope 1 and 2 emissions. This and revenue growth not linked to our fleet reduced our carbon intensity by 24%. The amount of green energy we procure increased from 22% in FY2023 to 64% this year. 

We implemented a new methodology to calculate vehicle-related emissions for FY2023 and FY2024. In FY2025, we will apply this updated methodology to evaluate our FY2022 baseline year and assess the impact of the carbon reduction targets we set in FY2023.

Consolidation approach and organisational boundary

We have derived the emissions data presented using the operational control approach, which is required under the Companies (Directors’ Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018.

We have included each facility under operational control within the figures. The Group has used the principles of the GHG Protocol Corporate Accounting and Reporting Standard (revised edition), ISO 14064-1.

Methodology

We arrived at the information using Defra’s current conversion factors, and had the data verified by an independent, UKAS-accredited, third party assessor to the level of reasonable assurance.

Measuring the carbon footprint of our value chain

Developing a Scope 3 footprint is crucial for effectively managing emissions and reducing value chain GHG emissions. Working closely with environmental consultants we have taken a “whole lifecycle” approach to determining the carbon emissions of our value chain. Developing this footprint provides clarity on relative risks and opportunities for reduction within our Scope 3 emissions compared with our direct Scope 1 and Scope 2 emissions.

We believe that this will help us to prioritise our reduction efforts, guide our corporate procurement decisions and improve our reputation through disclosure to interested stakeholder groups. These include customers and investors, who themselves are looking to improve their full value chain emissions reporting.

Our analysis of our FY2024 emissions identified that Scope 1 and Scope 2 emissions made up just under 1% of our total value chain emissions with the balance resting in Scope 3, both upstream and downstream.

Reporting and baseline year

We have aligned our reporting and fiscal years, so the information presented covers period from 1 May 2023 to 30 April 2024. Following the introduction of FMG RS emissions data in FY2021, FY2022 was considered a suitable year to establish as our baseline year.

We monitor various performance metrics to reduce emissions from our operations and vehicles used by our customers. However, lack of data and inconsistent standards make reducing value chain emissions challenging. We plan to improve data collection and stakeholder engagement to drive our performance towards achieving our goals.