NCC Group plc Annual Report 2021

Sustainability continued

Environment continued

Total GHG tCO 2 e

tCO 2 change from previous

% change from previous year

year (2020 and 2021)

2021

Source

2019

2020

Scope 1 Gas

79.96 46.83 22.68 24.15

63.11

61.35

19

30

Company vehicles

185.83 309.42 121.98 187.27 63.85 122.15

(263) (165)

(85) (88) (80)

Diesel Petrol

(98)

Total scope 1

126.79

248.94 370.77

(244)

(192)

Scope 2 Electricity

297.79

345.43 415.32

(118)

(39)

Total scope 2

297.79

345.43 415.32

(118)

(39)

Total scope 1 and 2

424.58

594.36 786.09

(362)

(85)

Scope 3 Business travel

29.14

222.32 611.17

(582)

(95)

Total scope 3

29.14

222.32 611.17

(582)

(95)

Total scope 1, 2 and 3

453.72

816.68 1,397.26

(944)

(68)

Underlying energy use The table below shows the proportion of Scope 1 and Scope 2 energy use that occurs in the UK and non-UK countries alongside the total carbon emissions. In FY21, 45% of the Group’s energy consumption and 72% of carbon emissions arose from the UK. FY21 energy use FY21 carbon emissions

UK cycle to work scheme In April 2021 we enhanced the benefit allowance, in line with the UK government’s cycle to work scheme, from £1,000 to £6,000 for colleagues living in the UK and using a bike to commute to work. Colleagues can purchase a bike and equipment through this organised salary sacrifice scheme and the increase was made because of their feedback in our colleague forums and annual engagement survey. This enhancement is part of our overall wellbeing programme and commitment to reducing the impact we have on the environment.

% of global energy use

KwH

Area

tCO 2 e

% tCO 2 e

1,436,210 1,780,945

45% 55%

UK

305.003 119.577

72% 28%

Non-UK

Secure leadership buy-in

Total

3,217,155

N/A

424.58

N/A

Establish committee oversight

Task Force on Climate-Related Financial Disclosures (TCFD) We recognise the importance of identifying the financial and non‑financial impacts of climate change on the business. To make more informed financial decisions, we and our investors, lenders and insurance underwriters need to understand how climate related risks and opportunities are likely to impact our future financial position. A robust approach to assessing climate change risks and opportunities will support us to develop business strategies, which will support future sustainability and growth. While we are not required to report against TCFD requirements this year, we recognise the importance of this initiative and how it aligns with our wider ESG agenda. We have established a partnership with Willis Towers Watson to further develop our approach to identifying and assessing climate change risk, which supports the development of a robust strategy. The model to achieve this is shown opposite.

Integrate into reporting

Assess financial impacts

Perform scenario analysis

Obtain assurance

Collaborate across the business

Implement internal control

Adapt ERM

Use existing tools

Solicit investor feedback

58

NCC Group plc — Annual report and accounts for the year ended 31 May 2021

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