CLIMATE ANALYSIS REPORT CONTINUED
Scope 3 This year we completed our third comprehensive Group- wide exercise to capture data on all Scope 3 emissions. The exercise sought to cover the entire Group (including new acquisitions), and included as many of the Scope 3 sub- categories defined by the GHG Protocol as possible. Despite the significant improvements in processes already made, we are aware that data collection in respect of Scope 3 emissions is more challenging for businesses than for Scope 1 and 2. The Group will continue to take this into account as our processes evolve in future years. Compliance with SBTi performance reporting requires us to calculate emissions for the downstream Scope 3 categories processing of sold products (3:10), use of sold products (3:11) and end-of-life treatment of sold products (3:12) for our base year of CY2023 and subsequent reporting years. We completed the calculation of these figures based upon a cross-section of our key products and continue to use these broad assumptions as a repeatable and practical methodology. Influencing the emissions from the use of sold products category, in particular, is largely out of our control, reliant as it is on the huge variety of applications for our products and the electrical energy generation mix of the countries into which they are sold. For this reason, we continue to collect source data for our Scope 3 reporting of CY2025 from our operating businesses for categories 1–9 and estimate categories 10–12 centrally. Like Scope 1 and 2, Scope 3 emissions are reported on a calendar year basis, from 1 January to 31 December. This differs from our financial year to be consistent with previous emission assessments. There were two key elements to the exercise in our third year: ■ To enhance the availability and accuracy of emissions drivers and reduce our reliance on spend-based data. ■ To sense-check and analyse trend data over the three years of data now available. A summary of the key findings is as follows: ■ Our CY2025 Scope 3 emissions were 1% higher than those identified last year, at 2,671,103 tCO 2 e (CY2024: 2,642,821 tCO 2 e), comprising over 99% of the Group’s total emissions across all of Scope 1, 2 and 3. This increase was driven by more extensive data collection for our downstream transportation (category 3:9) calculation. We recognise the limitations in our data, and we will continue to enhance accuracy and completeness in future years. ■ The largest category of Scope 3 emissions was from emissions in use (category 3:11), with that category alone representing over 87% of Scope 3 emissions. Emissions were 1% lower than in CY2024, as we benefitted from lower emissions location-based electricity conversion factors in the geographies into which we sell our products.
A summary of each of the categories within Scope 3, and their relevance and materiality to us as a Group, is provided below:
■ The second largest source of Scope 3 emissions was purchased goods and services (category 3:1), which comprised 7% of total Scope 3 emissions. This year we were able to gather a more complete data set for the category, and included a higher volume of primary data in our calculations. ■ The third and fourth largest sources were downstream (category 3:9) and upstream (category 3:4) transportation, representing 4% and 1% of our Scope 3 emissions, respectively. Data collection for downstream transportation poses a particular challenge because the data is often held by customers rather than the Group. We will continue to refine the data collection and accuracy of intra-Group shipments and customer distribution. Our Scope 3 emissions calculation methodology is as follows: ■ For Purchased Goods and Services (category 3:1), we enhanced our analysis from last year, increasing the amount of activity-based data available, particularly in using the weights and quantities of raw materials consumed. Where quantity data was not available, all other goods and services purchased used spend- based data relating to the type of goods and materials purchased at a generic level (for example, copper, aluminium, plastics, paper, etc.). That data was then processed by our carbon emissions data capture and calculation tool. This is in line with the GHG Protocol reporting methodology but is less accurate than supplier-specific data (where such data is available). It also relies on the correct material codes having been applied. We expect our calculations to become more established and accurate as we continue to refine our methods and processes in the coming years. To this end, we have developed a taxonomy of purchases for use by our businesses, which was used to enhance detail and consistency across our Scope 3:1 data collection in CY2025. ■ Transportation data was based on weights carried, distances travelled and mode of transportation used where possible. Where such data was not available, spend on transportation was used to calculate an assumed emissions profile. ■ Our downstream calculation methodology requires us to make a number of assumptions including, but not limited to, usage intensity, expected performance, source of power and the carbon intensity of that power, and the economic life of our products. Given the long service life of some of our product portfolio, and the broad range of our total portfolio, there is a significant level of uncertainty associated with this methodology. We make use of the allowance in the GHG Protocol’s Technical Guidance to group similar products together, and use average statistics for a typical product in that class to extrapolate emissions numbers for the whole of the discoverIE Group. We recognise that this is an iterative process, and our methodology and systems will be refined over time. This work will help us achieve our ultimate goal of becoming a net-zero emissions business across all Scopes 1, 2 and 3 by 2040.
CY2023
CY2024
CY2025
Category
Description
tCO 2 e
% tCO 2 e
% tCO 2 e
%
1
187,305
7.0%
Purchased goods and services
Extraction, production, and transportation of goods and services purchased Extraction, production, and transportation of capital goods purchased Extraction, production, and transportation of purchased fuels and energy that are not already accounted for in Scope 1 and 2 Purchased transportation and distribution of products and services Disposal and treatment of waste generated in operations Transportation of employees for business- related activities in vehicles not owned by the Group Transportation of employees between their homes and workplaces Operation of assets leased by the Group that are not included in Scope 1 and 2 Transportation and distribution of products paid for by customers Processing of intermediate products sold by downstream companies
151,290
5.7% 213,713
8.1%
2
6,078
0.2%
Capital goods
661
0.0% 2,228
0.1%
3
1,905
0.1%
Fuel- and energy- related activities
2,281
0.1% 2,132
0.1%
4
29,311
1.1%
Upstream transportation and distribution Waste generated in operations
58,165
2.2% 53,667
2.0%
5
42
0.0%
104
0.0%
141
0.0%
6
1,807
0.1%
Business travel
642
0.0% 2,204
0.1%
7
1,993
0.1%
Employee commuting
2,236
0.1% 2,406
0.1%
8
Upstream leased assets
N/A
9
103,424
3.9%
Downstream transportation and distribution
12,817
0.5% 13,409
0.5%
10 Processing of sold products
5,642
0.2%
3,382
0.1% 2,734
0.1%
11 Use of sold products
2,333,351
87.4%
End use of goods and services sold
2,450,543
91.3% 2,349,168
88.9%
12 End-of-life
245
0.0%
Waste disposal and treatment of products sold
1,111
0.0% 1,019
0.0%
treatment of sold products
13 Downstream leased assets
Operation of assets owned by the Group and leased to other entities
N/A
14 Franchises
Operation of franchises
N/A
15 Investments
Operation of investments
N/A
2,671,103
100%
2,683,232
100% 2,642,821
100%
72
73
discoverIE Group plc Innovative Electronics
Annual Report and Accounts for the year ended 31 March 2026
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