Havwoods Net Zero Annual Report 2024

The Havwoods annual Net Zero report for 2024

REPORTING PERIOD: 2024

Net Zero Annual Report

Contents

Executive summary 1 | Our why 2 | Calculation methodology 3 | Our Net Zero targets 4 | Our emissions 5 | Our progress to date 6 | Reducing our emissions 7 | Appendix

Executive summary Measured and targeted emissions reductions to 2030

Current footprint: 3,977.7 tCO2e*

5,000.0

160.0

Our highest emitting categories in 2024 were:

4,500.0

137.5

140.0

4,000.0

Purchased goods and services Transportation and distribution Capital goods

120.0

3,500.0

100.0

3,000.0

80.0

2,500.0

By 2030 we intend to:

61.0

2,000.0

60.0

Electrify the company fleet Procure 100% renewable electricity Reduce scope 3 emissions by 42%

46.9

1,500.0

40.0

1,000.0

20.0

500.0

3.9

0.0

0.0

We aim to be Net Zero by 2050 at the latest.

2030

2023 2024 2025 2026 2027 2028 2029

2023 2024 2025 2026 2027 2028 2029 2030

Measured Scope 1 Scope 1 target

Measured Scope 2 Scope 2 target

Scope 3 target

Measured Scope 3

1 | Our why

Why we’re taking action

There is now overwhelming

Bringing design aspirations to life through the beauty of natural wood for over 50 years, Havwoods is renowned for delivering luxury wood flooring and surfaces that transform interiors. Found in some of the world’s most prestigious hotels, restaurants, designer stores, workspaces and homes, our collections of premium wood surfaces offer a near-limitless choice of species, finishes and colours to suit every interior. We are committed to guaranteeing that every Havwoods product embodies the highest environmental certifications and durability, championing responsibly managed forests and extended product lifecycles.

scientific evidence of climate change.

Sourcing timber from sustainably responsible forests is extremely important to us. We only work with reputable timber companies and have stringent onboarding processes for all suppliers, embedding robust environmental criteria from the outset. We are proud to work with a number of globally recognised environmental certifications including FSC®, FloorScore® and PEFC. Our ISO 14001 certification is part of our long- term commitment to sustainability. The yearly renewal of this internationally agreed and recognised standard for Environmental Management Systems reinforces our dedication to continuously driving towards our ambitious sustainability goals.

Greenhouse gas emissions have climbed to their highest levels in human history.

The world is not doing enough to respond to this crisis and limit warming to 1.5°C (the Paris Agreement’s threshold to avoid the most catastrophic impacts for people and nature). The latest climate report from the UN’s Intergovernmental Panel on Climate Change (IPCC) offers a message of hope, a warning, and a challenge - and businesses have a crucial role to play in changing the course of our planet’s future. This Report shows that we already have solutions, in every sector, to halve emissions by 2030, in line with a 1.5°C pathway.

We have a long- term commitment to what matters most: our products, our people and our planet.​

We are proud to commit to our Net Zero target, recognising that environmental sustainability is a shared responsibility. By taking action, we are creating lasting benefits for our customers and our people – now and for generations to come.

2 | Calculation methodology

How our emissions are calculated Positive Planet has calculated Havwoods’ greenhouse gas (GHG) emissions in line with the GHG Protocol, the globally recognised standard for carbon reporting. Emissions are categorised into Scope 1 (direct), Scope 2 (energy-related) and upstream Scope 3 (indirect) emissions. Results are reported in tonnes of carbon dioxide equivalent (tCO₂e), which standardises the impact of seven key greenhouse gases. The diagram in this section of the Report helps to visualise where these emissions come from and how they fall within the scopes. Calculations are based on data provided by Havwoods applied to UK Government issued emission factors, with spend data adjusted for inflation where needed. Where available activity-based data (e.g. energy consumption/distance travelled) has been prioritised; otherwise, a spend-based approach has been applied. Data reported to Positive Planet has undergone a high-level review but has not been completely verified to source. In devising a carbon reduction plan with the goal of achieving Net Zero, it is critical that we first understand where our emissions come from. To support this, we have partnered with Positive Planet to measure our emissions.

How we measure our footprint

For full methodological details, please refer to the Report appendix.

To ensure comparability between our base, which emissions reductions are assessed against, and most recent reporting years it is common practice to adjust historic emissions in line with updates to organisational structures, available data, methodologies or factors used to calculate emissions.

Restating our emissions

Ensuring comparability

Carbon accounting guidance and emission factors provided by external bodies such as DESNZ and the GHG Protocol may be subject to periodic change due to improvements in data availability, calculation methods and industry best practices. These changes are outside our control, however, we may need to remeasure and restate previous emissions occasionally to ensure comparability and alignment with current standards, maintaining the accuracy of reported emissions and the integrity of Net Zero targets. This may also be necessary when significant organisational changes occur that impact our emissions (+/-5%). In line with the above, Havwoods’ base year emissions have been restated to align with updates to respective spend and activity-based emission factors. Should restatement be necessary in the future, our approach will be to remeasure the base and penultimate year alongside the current reporting period.

For full methodological details, please refer to the Report appendix.

CO₂

CH₄

N₂O

SF₆

NF₃

HFCs

PFCs

Scope 2

Scope 1

Controllableindirect

Directemissions

Purchased electricity

Scope 3

Scope 3

Downstream transportation and distribution

Upstream leased assets

EVs

Influenceableindirect

Influenceableindirect

Company ICE vehicles

Employee commuting

Processing of sold products

Downstream leased assets

Purchased goods and services

Purchased steam, heating and cooling

Business travel

Company facilities (gas, refrigerants, process)

Use of sold products

Capital goods

Investments

Waste generated in operations

End-of-life treatment of sold products

Fuel- and energy-related activities (not included in scope 1 or scope 2)

Upstream transportation and distribution

Franchises

Upstream activities

Reporting company

Downstream activities

3 | Our Net Zero targets

What does Net Zero mean?

Scope 1 Emissions Direct greenhouse gas emissions that occur from sources owned or controlled by a company, such as emissions from combustion of fuels in on-site boilers, furnaces, or vehicles.

Scope 2 Emissions Indirect greenhouse gas emissions that result from the generation of purchased electricity, steam or other forms of energy consumed by a company.

To achieve Net Zero, companies aim to reduce emissions in line with science-based targets (SBTs). These are set by organisations and are “science- based” when they align with the reductions needed to keep global temperature rise below 1.5°C as per the Paris Agreement. SBTs provide companies with a pathway for sustainably transforming to a low carbon economy.

Current guidance from the Science Based Targets Initiative (SBTi) states that most businesses should reduce their total emissions across all scopes by 90% by 2050 at the latest. Carbon removals should then be used to neutralise the residual emissions. Net Zero targets must include Scopes 1, 2 and 3.

Scope 3 Emissions All other indirect greenhouse gas emissions that occur in an organisation’s value chain, including emissions from upstream and downstream activities.

Net Zero When a business has reduced its Scope 1, 2 and 3 emissions by as much as possible, leaving only ‘residual’ emissions, which cannot be removed. Current guidance from the SBTi states that for most businesses, this means a total reduction in emissions across all scopes by ~90%. Carbon removals should then be used to neutralise the residual emissions.

What’s the difference?

Carbon Neutral A carbon neutral business has committed to reducing emissions, and in the meantime balances its remaining emissions through carbon removal/ offsetting schemes.

Zero Emissions When no carbon is produced directly from a particular activity, product, or service (such as the running of an electric van or an electric cooker on electricity produced through solar power).

Our near-term Net Zero targets.

1

2

3

Reduce Scope 1 emissions by 42% by 2030

Reduce Scope 2 emissions to zero by 2030

Reduce upstream Scope 3 emissions by 42% by2030

4 | Our emissions

Base year emissions: Jan - Dec 2023

Current emissions: Jan - Dec 2024

Annual emissions trends

Total organisational emissions have decreased 14% between the base and current reporting year.

Scope 3

Scope 1

Scope 3 emissions have decreased overall, with relatively high reductions in employee travel and commuting. Reductions in procurement categories and increased transportation emissions are linked to trends in spending activity. Efforts to move away from a spend- based approach to quantifying these emissions, and reasons to prioritise this, are outlined in the ‘Our Progress’ section of this Report.

Significant reductions in Scope 1 have been achieved by swapping out to a more fuel-efficient HGV in addition to reduced petrol consumption across company cars.

Scope 2

The 94% reduction in Scope 2 emissions is driven by switching all Havwoods’ premises on to 100% renewable electricity. Electric vehicles are the source of remaining Scope 2 emissions, as charging sources cannot be confirmed a location-based approach is applied to calculate these emissions.

Targeted annual reduction: Scope 1 Havwoods has over delivered on the near- term target of 42% reduction by 2030 by 24% and six years early. Achieving a 66% reduction in Scope 1 emissions between the base and 2024 reporting period. This was achieved through the replacement of a Heavy Goods Vehicle with a fuel-efficient model part way through 2024 and reduced fuel consumption across the remaining company fleet. The ongoing EV transition and active management of the fleet will allow Havwoods to realise further reductions moving forward.

Measured and targeted Scope 1 emissions

160.0

137.5

140.0

120.0

100.0

80.0

60.0

46.9

40.0

20.0

0.0

2025

2026

2027

2023

2024

2028

2029

2030

Measured Scope 1

Scope 1 target

Targeted annual reduction: Scope 2 (market-based) Havwoods has made excellent progress towards the near-term target of reducing Scope 2 emissions to zero by 2030. As renewable electricity tariffs from all occupied premises were procured for the entire 2024 reporting period there are no market-based emissions to report. Remaining Scope 2 emissions are due to Havwoods electric vehicles, as charging is not entirely on-premises location-based emissions calculations have been applied as during 2024 we ensure 100% renewable electricity during charging.

Measured and targeted Scope 2 emissions

70.0

61.0

60.0

50.0

40.0

30.0

20.0

10.0

3.9

0.0

2023

2024

2028

2029

2030

2025

2026 Measured Scope 2

2027 Scope 2 target

19 | positiveplanet.uk

Targeted annual reduction: Scope 3 A 6% annual reduction is required for Havwoods to remain on track with the near- term target of a 42% reduction by 2030. Currently Havwoods is ahead of the rate of reduction required to remain on track to deliver on the above target. In fact, achieving an 11% reduction between the base and current reporting period puts Havwoods nearly a year ahead of the targeted rates of reduction.

Measured and targeted Scope 3 emissions

5,000.0

4,500.0

4,000.0

3,500.0

3,000.0

2,500.0

2,000.0

1,500.0

1,000.0

500.0

0.0

2023

2024

2028

2029

2030

2025

2026 Measured Scope 3

2027 Scope 3 target

5 | Our progress to date

2024 highlights

Measuring and managing

Fleet decarbonisation

Employee engagement

In 2024 we were committed to measuring and reporting our business’ carbon footprint annually, allowing us to understand where our emissions come from and take action to reduce them. We also gained and continue to hold ISO 14001 accreditation, supporting our continuous efforts to monitor, manage and mitigate environmental impacts from our on-site operations.

Four key Havwoods employees were certified Carbon Literate following training delivered in 2024. To support with our ongoing commitment, employees from across the business were invited to establish a formalised group named the ‘Green Team’. This group meets regularly to discuss sustainability within all parts of the business, to monitor emitting activity data and oversee the roll out of reduction initiatives.

Part way through the year we streamlined our fleet emissions significantly by replacing an existing Heavy Goods Vehicle with a newer, more fuel efficient, model. We additionally reduced total fuel consumption across our entire fleet through improved resource management and continued adoption of EV and hybrid options. This totalled a 66% reduction in diesel and petrol consumption compared with 2023.

Company premises and fleet

Our premises

Our fleet

2024 marks the first year during which all of Havwoods’ occupied premises were powered by 100% renewable electricity, this was achieved through the procurement of renewable energy tariffs across our operations. In addition to procuring renewable energy, in 2024 we confirmed the installation of solar panelling at our head office, this was completed in 2025 and is projected to reduce location-based emissions. While procuring and generating our own renewable electricity we remain committed to reducing energy demand overall. To date, our head office and Clerkenwell showroom have been fully retrofitted with LED lighting, and we are in the process of introducing this across all our showrooms. Delays to planned 2025 works at Chelsea mean these will now be completed during the 2026 reporting period.

Currently 96.8% of company vehicles are hybrid or fully electric, with one internal combustion engine vehicle still in use. We also continue to conduct regular reviews around low/no-emission HGVs as solutions evolve. The reduction in total fleet fuel consumption outlined on the previous page is driven by our continued transition to electric and hybrid vehicles. To support this we have installed 10 EV charging points at our head office, with an additional unit at our Earls Barton site. These were recently updated to more modern units with higher efficiency. All charge points are available for use by employees, and it is hoped this will facilitate switching to hybrid and electric vehicles. In turn this will address employee commuting emissions.

Products and logistics

Sustainable products

Packaging

We have an EPD (Environmental Product

Our pallet wrap machine has been upgraded to allow a 270% pre stretch on the film, meaning less waste, and improving pallet stability in transit. We are proud that, all our packaging materials are recycled, recyclable or both.

Declaration) in place to cover our extensive PurePlank range and a selection of products in our V Collection range. We also have an EDP in place to cover our bestselling Italian Collection range and expect to complete two more EPDs for our key product ranges by the end of 2025, including Venture Plank. These EPDs will feed into future emissions reporting to support the move away from a spend- based approach to our scope 3 purchased goods and services emissions.

Logistics

We have made good progress engaging with our shipping providers to begin collecting emissions reports. This will feed into future emissions reporting projects to begin tracking real-world emissions and our suppliers own decarbonisation achievements.

5 | Reducing our emissions

Supply chain emissions Following restatement of emissions, ‘Purchased Goods and Services’ remains the largest contributor to our footprint, comprising 75% and 78% of our base year and 2024 emissions respectively. Currently the majority of emissions in this category are estimated using spend-based data, barring wood products which are estimated using purchased material weights. This means emissions within this category are susceptible to trends in annual demand and cannot tell us much about our specific supply chain. Moving away from average estimation measurement approaches is a key priority in addressing our emissions as this will allow assessment of supplier emissions and reflection of their own achievements within our emissions.

Wood products and materials

Building sustainability into our processes

Addressing emissions from the wood and other materials that make up our core products is a priority when addressing supply chain emissions as these products account for 90% of base year purchased goods and services emissions. We continue to work with our suppliers to expand EPD coverage of our product ranges, which will allow us to quantify emissions per product based on real-world data. We will also be able to track achievements in reducing the emissions associated with these products through updating EPDs to reflect any innovations made within the supply chain.

To support our efforts to engage suppliers not directly producing our products we will develop a sustainable procurement policy and communicate our intentions around starting to collect data from suppliers. Development of this policy is planned during 2026, with policy implementation and subsequent emissions data collection to follow once this is finalised. Collaboration with suppliers will be key to achieving reductions. Following the implementation of this policy and surveying we will increasingly include sustainability as a key factor in procurement decisions, inclusive of materials, packaging, logistics and service-based solutions.

Logistical decarbonisation

Importing goods

Delivering to customers

Havwoods’ products are sourced from partners across the globe, in the base and current reporting period importing goods was our second highest emitting activity outside of procurement. As we rely on 3rd party providers to deliver goods and materials to our facilities, we have not historically had oversight of the modes of transport used. This means we have defaulted to a spend-based estimation approach to quantifying emissions. During 2025 we have made headway with freight providers and expect to begin incorporating direct emissions reports into our next reporting period, allowing much improved oversight of our shipping activities. We continue to engage with other regional freight providers to request such data. This will ultimately allow us to benchmark our suppliers’ sustainability credentials against industry trends and begin factoring sustainability into our procurement processes.

Delivery of products to our customers occurs through Havwoods’ company fleet and third- party partners. As outlined in the ‘Our Progress’ section of this Report, we are making good progress in the decarbonisation of our vehicles, with the tiered preference toward electric, hybrid and fuel- efficient vehicles being implemented with consideration of commercially viable solutions. 3rd party providers pose a different challenge, and we aim to begin broaching sustainability and emissions reduction initiatives with them as part of the procurement policy revisions outlined on the previous page

Business travel and commuting Our base and 2024 business travel emissions are mainly estimated using a spend-based rather than distance-based methodology. Collecting higher quality data in the future will be imperative if we are to accurately measure reductions in emissions as a result of sustainable choices. While working to improve data capture processes, we are actively reviewing other options such as: While we have less influence over how employees commute to work, we can encourage sustainable choices by making it easier for employees to adopt them. Addressing high impact travel methods such as flights Introducing a sustainable business travel policy Carbon budgets for projects and/or frequent flyers Linking bonuses to travel

As part of our ongoing commitment to review business travel and commuting, we will explore the feasibility of offering cycle to work schemes, along with options to create shower and bike storage facilities across our sites.

Our people and culture

Our passion for delivering design aspirations is the true heart and soul of the ‘Havwoods Approach’, but it's our results-driven commitment to quality, integrity and collaboration that defines who we are, and how we work with our people, partners, and clients. We aim to inspire positive change in every area of our work, engaging responsibly with team members, clients, partners and our local communities. Havwoods’ internal Environmental Framework outlines the governance structure of key environmental considerations at each level within our organisation.

Building a sustainable workforce

Engaging customers and suppliers

Sustainability is not just a word within Havwoods, it’s one of our key strategic pillars and a fundamental driver behind everything we do. Beginning with our 2023 base year, our Net Zero journey continues to be driven every day by our people. In 2024 we supported four employees in completing their Carbon Literate training and certification, strengthening sustainability knowledge across the business. Building on this momentum, we launched the ‘Green Team’ in 2025 to bring colleagues together for regular discussions on sustainability ideas, challenges and progress. The group now plays a vital role in driving, managing and communicating our company-wide emissions reduction initiatives. Reporting monthly to the Global Environment Board, the Green Team contributes to key agenda areas including the maintenance of our ISO 14001 accreditation, sustainable product sourcing and lifecycle considerations, communications planning and the continued development of our emissions reduction strategy.

We are committed to engaging with both ends of our value chain to help integrate sustainability into all levels of our business, including helping our customers understand the climate impact of their own decisions in a non- judgemental, supportive way. In line with this we are committed to transparency through continued celebration of success as well as addressing challenges.

Appendix

Appendix I: Methodology

How we calculate a carbon footprint

Carbon accounting methodology disclaimer

Carbon accounting guidance and emission factors provided by external bodies such as DEFRA/DESNZ and the GHG Protocol may be subject to change periodically due to improvements in data quality, calculation methods, and industry best practices. As these updates are outside Positive Planet’s control, we may need to remeasure and restate emissions occasionally for previous years to ensure comparability and alignment with current standards, maintaining the accuracy of emissions data and the integrity of Net Zero targets. Where this is necessary in the future, our approach will be to remeasure the previous measurement year and base year, alongside the most recent measurement.

Positive Planet’s GHG Emissions Reports are carried out in accordance with the GHG Emissions Protocol Accounting and Reporting Standard. Using the most widely recognised and used emission standard in the world ensures all measurements, calculations and reporting are completed to the most consistent and accurate standards possible. Positive Planet was supplied information by Havwoods covering each of the emission sources included within their emissions inventory. Greenhouse gas emissions were calculated based on relevant emission factors. The provided data has been subject to high level review, but not verification to source. Using the GHG Emissions Protocol Standard, business emissions are identified using three scopes of emissions. Seven Greenhouse Gases are calculated as part this emissions report, known as the seven Kyoto Protocol GHGs. These gases occur the most often as a result of business activities, with the highest Global Warming Potential. Throughout this Report,Havwoods’ emissions are reported in tonnes of carbon dioxide equivalent (tCO2e), which consolidates the different global warming potentials (GWP) of each gas. The GWP accounts for the variable potency and atmospheric lifetime of each GHG emitted and converts this to the equivalent amount of carbon dioxide over a 100-year period.

Appendix II: 2024 Emissions

46.9

3,927.0 3,101.1

Total market-based 3,977.7 Total location-based 4,058.4

Scope 3 (upstream)

Scope 1

1.2

Purchased Goods & Services

Stationary Combustion

282.0

45.7

Capital Goods

Mobile Combustion

58.3

Fuel & Energy related

0.0

Fugitive Emissions

350.8

Transportation & Distribution

0.0

Process Emissions

3.9

Operational Waste

65.2

Business Travel

3.9 3.9 84.5

Scope 2

65.6

Commuting & Homeworking

Purchased Electricity (market-based) Purchased Electricity (location-based)

0.0

Leased Assets

0.0

Heat & Steam

Scope 3

(downstream)

outside of Scope

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