SUSTAINABILITY IN ACTION CONTINUED
CY2021 to CY2029 to the more realistic 50% reduction from CY2021 by CY2030. We are confident that this will not prevent us from reaching our overall net-zero in Scope 1 and 2 by 2030 target, as we intend to achieve a 100% reduction in electricity emissions, offsetting the smaller planned gas reduction. We continue to balance increased activity with the identification of viable and cost-effective technologies to replace gas at our remaining sites. In addition, the prevalence of natural gas as a fuel for heating in industrial applications means we often acquire new natural gas emissions with new businesses. 32% of our emissions from natural gas in CY2025 were generated by companies acquired since CY2021. In March 2025, the GMC approved plans to replace all gas heating at the Noratel operating facility in Poland with an electric alternative, which is expected to reduce our GHG emissions from natural gas by over 100 tCO₂e p.a. from installation (expected in the second half of CY2026). To ensure accuracy and fair representation of our greenhouse gas emissions and their reduction, we have engaged Carbon Footprint Ltd to provide independent assurance of our reported Scope 1 and 2 emissions for the second year running. Carbon Footprint have verified emissions reported for CY2021 (our base year), CY2024 and CY2025 in accordance with ISO 14064 Part 3, to a limited level of assurance. During the year, we continued our efforts to identify and calculate Scope 3 emissions. The exercise covered the upstream emissions of the entire Group (100% of all Group companies) and included enhanced data for downstream transport emissions. Given the high-level calculation necessary to estimate our other downstream Scope 3 emissions (chiefly our emissions in use calculation) we are still reliant on general assumptions and approximations to gauge their impact. We will continue to refine our processes and methodology to incorporate all relevant reporting, whilst maintaining a practical balance between the effort required and the accuracy achievable. In parallel, we will use the enhanced understanding of the sources of our emissions to develop our future reduction plans and enhance our products’ GHG performance, to effect real reductions. More information on our Scope 3 emissions can be found on pages 72 to 73. Use of resources Energy usage Energy consumption during CY2025 was 2% higher, due to the acquisition of Burster. Like-for-like energy intensity increased by 2% in CY2025 compared to CY2024, and decreased by 27% compared to CY2021. This exceeds our target to reduce consumption by 10% by 2030. Almost all our operating company sites have implemented simple energy- saving measures, such as replacing lighting with energy- efficient LED alternatives. We must now start to explore more complex processes and operational improvements.
Further details of how we performed during CY2025 can be found in the Climate Analysis Report on pages 69 to 71. We continue to make good progress in reducing our Scope 1 and 2 emissions across the Group. Key elements in achieving reductions to date include investing in solar panels at our Limitor manufacturing plant in Hungary, installing heat pumps for space heating at our Variohm Eurosensor site in the UK and exploring funding for dual fuel heat pumps at Beacon in the USA. We are considering future investments in solar panels and electric heating at other sites, where economically appropriate. Where available, we have also switched our sites’ electricity supplies to renewable energy sources. In CY2025, natural gas became our single biggest source of Scope 1 and 2 emissions, overtaking electricity. Our gas emissions from companies that have been members of the Group since CY2021 were 11% lower than in CY2021. Gas emissions from companies excluding Burster (acquired during CY2025) were equal to CY2024, as reduction opportunities identified over the last year will take time to generate reported GHG emission savings. As we understand our emissions profile more clearly, and as we investigate gas alternatives, we have increasingly come to understand that there is often not a cost-effective alternative technology available, even when factoring in the benefit of the GHG emissions saved. We have therefore updated our original target of a 90% reduction in natural gas emissions from Our targets ■ Reduce Scope 1 and 2 emissions by 65% by 2025 against CY2021 baseline and to net-zero by 2030 ■ Source 80% of energy from zero-emission sources by 2025, and 100% by 2030 ■ 50% electric vehicles or hybrid in the company car fleet by 2025 and 100% by 2030 ■ Replace at least 50% of gas heating with lower-emission alternatives by 2030 ■ Reduce energy intensity by 10% by 2030 ■ 80% of revenue covered by ISO 14001 certification Our progress ■ In CY2025, we reduced Scope 1 and 2 emissions by 68% compared to the CY2021 baseline ■ 85% of the Group’s electricity is now sourced from renewable or clean sources ■ 58% of the vehicles in our car fleet are now electric or hybrid ■ In CY2025, natural gas emissions were 14% lower than the CY2021 baseline ■ In CY2025, energy intensity was 27% lower than CY2021 ■ 74% of revenue is generated by operations with ISO 14001 certification
Water usage Our production processes typically require no or very little water, with less than 10% of our water consumption used in production processes. Where water is used in production, it is mainly for cooling purposes, where recycled water is used. The main source of our water consumption is for drinking and sanitation purposes, and therefore the risk of water scarcity is not a material concern for the Group. However, we also recognise that water is a finite resource, particularly for our businesses in areas of high water stress, such as Thailand and India, and reducing water consumption is an essential step in preserving the environment. About half of our water is consumed in countries rated as ‘High’ or ‘Very High’ risk by the WRI Water Risk Atlas. We will continue work to understand risk, increase awareness and promote water-saving practices throughout the Group. Waste management We take measures to minimise waste in the manufacture of products, use recycling options where available and reduce packaging. The majority of our products are non-hazardous. Where hazardous items are involved, environmental risks are minimised by use of appropriate labelling and technical information, in conjunction with training and procedures for handling, storage and disposal. As an electronics and electrical manufacturer, we follow all relevant laws and regulations, including those governing electronic waste handling, storage and disposal. By managing components and packaging to reduce our use of non-recyclable materials, we are helping to reduce our environmental footprint and promote more sustainable business practices. In addition, we are in the early stages of exploring the opportunities offered by circular economy principles. Our products are integrated into our customers’ technologies, and they are built to last for as long as the systems will be in operation. Nevertheless, we also encourage our engineers to consider circularity principles
CASE STUDY
(such as ease of reuse, replacement and recyclability) when designing new solutions for our customers. We recognise that this expertise is in its infancy, and we will need to continue to work closely with our customers to understand more fully the benefits circular design can bring in future. ISO 14001 accreditation The ISO 14001 (Environmental Management System) accreditation is an internationally recognised standard that sets out certain requirements for environmental management. It helps organisations improve environmental performance through more efficient use of resources and reduction of waste, and provides an objective, independent view of an organisation’s environmental credentials. One further site achieved ISO 14001 accreditation in FY 2025/26. 33 of our 69 sites are now covered by this accreditation, generating 74% of Group revenue (FY 2024/25: 74%). This certification is becoming more important as customers place increasing focus on the environmental credentials of their value chain. There were no fines relating to environmental non- compliance during the year or the previous three years. Limitor Hungary save carbon and costs In January 2026 our factory in Pécs, Hungary, became the latest addition to our solar panel fleet. In its first four months of operation, the system has already saved almost £7,000 of electricity cost and reduced the GHG emissions of the site by over 26 tCO₂e. With an annual estimated output of 65 MWh, the solar power installation is expected to generate approximately 30% of the site’s current electricity usage, and to pay for itself within two years.
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Annual Report and Accounts for the year ended 31 March 2026
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