CLIMATE ANALYSIS REPORT CONTINUED
Scope 1 and 2 Our net-zero plan for Scope 1 and 2 focuses primarily on addressing four of the Group’s largest emission sources: electricity, natural gas, company cars and refrigerants, and aims to achieve an absolute reduction of 90% by 2030 from the 2021 baseline. In CY2025, we reduced Scope 1 and 2 emissions for continuing operations in absolute terms by 68%, primarily driven by more sites switching to renewable energy sources and reduced electricity consumption. We report our greenhouse gas emissions using the operational control method to establish our organisational boundary. As all our subsidiaries are 100% owned by the Group, there is no difference between this and the financial control or equity share methodologies.
Scope 1 and 2 emissions by source To accelerate the transition to net-zero emissions, we have set out our strategy and a detailed plan to reduce our Scope 1 and 2 emissions. Our net-zero strategy has three priorities: Reduce, Replace and Remove. Reduce Reduce energy intensity across the Group Replace Replace higher carbon energy sources with lower or zero carbon options Remove Invest in removing emissions that cannot be replaced or reduced
Key metrics
Total Emissions¹ (tonnes) Like-for-like Emissions² (tonnes) Location-based CY2021 CY2022 CY2023 CY2024 CY2025 CY2021 CY2022 CY2023 CY2024 CY2025
1,650 5,853 7,503
1,650 5,853 7,503
Scope 1 Scope 2
1,488 9,365
1,338 1,606
1,546
1,991
1,802
1,894 1,677
8,710 6,736 6,749
9,754 9,068
7,012
6,869
Total Scope 1 and 2 10,853 10,048 8,342
8,295
11,745 10,870 8,906 8,546
2,626,882 2,640,536 2,671,103 2,635,225 2,648,831 2,678,606
2,683,232 2,642,818 2,671,103 2,692,138 2,651,364 2,678,606
Scope 3
Total emissions
Intensity – tCO 2 e/£m revenue (Scope 1 and 2)
17.26
17.26
30.73
23.49
18.61
18.99
28.05
22.18
19.42
18.80
Total Emissions¹ (tonnes) Like-for-like Emissions² (tonnes) Market-based CY2021 CY2022 CY2023 CY2024 CY2025 CY2021 CY2022 CY2023 CY2024 CY2025
Based on the strategy, we have developed the following action plan and milestones:
1,650 1,154 2,804
1,650 1,154 2,804
Scope 1 Scope 2
1,488
1,338 1,606
1,546
1,991
1,802 4,658
1,894 1,677
Actions
Milestones
6,460 4,392
2,820 2,006
6,765
2,991
2,010 3,687
Total Scope 1 and 2 7,948 5,730 4,426
3,552
8,756 6,460 4,885
Reduce
Reduce energy intensity by promoting process efficiency, employee awareness and engagement Switch to zero-emission energy sources through direct tariffs or renewable energy certificates ("RECs")
■ Reduce energy intensity by 10% by 2030
65%
68%
Reduction on CY21
28% 44% 55%
26% 44% 58%
2,626,882 2,640,536 2,671,103 2,631,309 2,644,088 2,673,907
2,683,232 2,642,818 2,671,103 2,688,117 2,646,505 2,673,907
Scope 3
Total emissions
Replace
■ 80% zero emission energy by 2025, and 100% by 2030
Intensity – tCO 2 e/£m revenue (Scope 1 and 2)
6.45
6.45
22.50 13.39
9.88
8.13
20.92
13.18
10.65
8.11
Replace gas heating with electric options
■ 50% reduction by 2030
Total Energy Like-for-like Energy 3 Location-based CY2021 CY2022 CY2023 CY2024 CY2025 CY2021 CY2022 CY2023 CY2024 CY2025 Energy consumption (MWh) 25,575 24,118 22,578 24,616 25,024 29,294 27,615 24,901 25,658 25,024 Energy intensity (kWh/£m revenue) 72,406 56,379 50,365 56,366 57,555 78,954 61,975 53,426 56,451 57,555 UK-based energy consumption 3 7.2% 8.9% 10.1% 8.9% 9.1% N/A N/A N/A N/A N/A 1 The “Total Emissions” columns include all continuing operations owned by the Group as at the end of each calendar year. The discontinued operations Vertec SA (disposed January 2022) and Acal BFi (disposed March 2022) are excluded from all figures. 2 “Like-for-like Emissions” include the assumed impact of emissions from companies acquired since 2021. In accordance with GHG Protocol guidance, historic emissions for these companies are deemed to be the same in prior years as in the year of acquisition. 3 The energy consumption of our UK-based businesses as a percentage of our total Group power consumption.
Replace company-owned cars with fully electric vehicles
■ 100% EV fleet by 2030
Remove
Remove all refrigerants
■ 100% removed by 2030
Invest in carbon removal projects to offset residual emissions
■ In 2030 and beyond
By the end of CY2025, 85% of our electricity was from renewable or clean sources (CY2024: 83%), benefitting from increased use of renewable tariffs, as well as the solar panels installed at numerous sites. This means that we have comfortably exceeded our target of 80% renewable electricity by CY2025. Energy consumption during CY2025 was 2% higher, with the increase driven by acquisitions. Energy intensity (expressed as kWh per £1m revenue) increased 2% year-on-year, due to lower revenue than the previous calendar year. However, energy intensity was 21% lower than in CY2021, well ahead of our 10% target by 2030. We continue to find ways to reduce energy consumption, particularly given our experiences of the difficulties of swapping out fossil fuel heating systems, and the fluctuating costs of fossil fuel, over the last few years.
Net-zero KPIs
CY2021
CY2025
Target
68%
Carbon reduction – absolute (Scope 1 and 2)
n/a
65% reduction by 2025 10% reduction by 2030
57,555
Energy intensity – continuing operations (kWh/ £m revenue)
72,406
85% 58% 74%
% electricity from renewable/clean sources
58% 19%
80% by 2025 50% by 2025 80% by 2025
Company cars (EV/hybrid) 1 ISO 14001 accreditation 2
61%
1 Measured as a % of Group company cars that are electric or hybrid. 2 Measured as a % of Group revenue generated by operations with a ISO 14001 accreditation.
70
71
discoverIE Group plc Innovative Electronics
Annual Report and Accounts for the year ended 31 March 2026
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