Metrics and targets
TCFD recommended disclosure
NCC Group disclosure
Developments in FY22
Focus areas for FY23
Metrics and targets
• Greenhouse gas emissions for 2022 vs prior years • Net zero plan is in progress • Car fleet to be discontinued • Physical risks review • Climate related performance
• Review of key risks and associated metrics following a modelling exercise • Greenhouse gas emissions
• To map NCC Group’s net zero journey • To develop the Scope 3 reporting to include impact of working from home and supply chain
A. D isclose the metrics used by the organisation to assess climate related risks and opportunities in line with its strategy and risk management process.
and carbon footprint independently verified
metrics incorporated into Directors’ remuneration
• Greenhouse gas emissions for 2022 vs prior years
• Greenhouse gas emissions independently verified
• To develop the Scope 3 reporting to include impact of working from home and supply chain • To define NCC Group’s net zero journey
B. D isclose Scope 1, Scope 2 and, if appropriate, Scope 3 greenhouse gas (GHG) emissions and the related risks. C. Describe the targets used by the organisation to manage climate related risks and opportunities and performance against targets.
• Set target reductions for carbon footprint and greenhouse gas emissions
• NCC Group’s carbon footprint has been independently calculated with the base year of 2022 to set a target for 2023
Greenhouse gas emissions Our Scope 1, Scope 2 and Scope 3 emissions were calculated in FY22 by Planet Mark in line with the GHG Protocol Corporate Standard. Planet Mark has calculated this from verified third party data and invoices as part of our overall carbon certification. Note, the certification has not been independently audited by KPMG. The Scope 3 emissions for transmission and distribution and travel distances were calculated using the units of energy consumption and travel distances provided respectively multiplied by the relevant BEIS emissions factors. Some conversions were used, for example GJ to kWh and miles to km. Scope 3 emissions are not the full scope in FY22 but we are working on the data requirements for this with Planet Mark. Net zero plan Over the next financial year, we will work with Planet Mark to develop our net zero plan (following the net zero standard defined by the Science Based Targets initiative: sciencebasedtargets.org/net-zero) and associated timelines, including full Scope 3 emissions disclosures. This includes verification of our carbon footprint and workshops, energiser sessions and masterclasses for the Board, Executive and broader colleague community. Our net zero plan will allow us to identify areas of higher carbon intensity and allocate targets to reduce these in line with the Paris Agreement. Meanwhile our carbon footprint measurement calculated for our full financial year ended 31 May 2022 has identified our current usage, 1,253.6 tCO 2 e, and targets for our total carbon footprint to reduce by 62.7 tCO 2 e, our total carbon reduction to be 5% and our carbon reduction per colleague to be 0.03 tCO 2 e. Targets and metrics: • To reduce our carbon footprint by 5% over the next financial year • To develop our net zero plan and associated timelines by 31 May 2023 • To improve the scope of our data and analysis working with landlords of shared buildings and our supply chain
Car fleet We currently have several company car scheme vehicles in the UK and the Netherlands, of which a number are already electric or hybrid. However, in February 2022 it was agreed that in the UK we would move from a company car scheme to a salary sacrifice scheme offering only electric or hybrid vehicles to all colleagues. This will provide all UK colleagues with the opportunity to afford an electric vehicle and will help further reduce our carbon footprint for business drivers as well as reducing the impact on local communities for social and domestic use. Target and metric: By 2027 the car scheme will be fully electric or hybrid and have moved to a salary sacrifice scheme. Physical risks We have a “Natural Hazards Assessment Network” (NATHAN) report from our insurers, Marsh, which is an established natural hazard mapping tool and has mapped our global locations against the risk of earthquake, storm and flood. The report does not quantify potential losses but identified the relative risk for our locations. Within the United States there are four sites at high risk of earthquakes and five at high risk of storms and there are four locations within Europe at high risk of flooding. However, it is important to note there are mitigating controls in place for all these scenarios. Our main locations at risk of flooding due to rising sea levels are in Delft and Amsterdam. We have reviewed flooding maps under different scenarios between 2m and 6m rises to water levels. However, the Dutch government has a programme for flood prevention 1 and there are safety projects in both Delft and Amsterdam, which are focused on improving and maintaining the current defences in place. Directors’ remuneration The CEO and CFO are assessed on climate related performance metrics as outlined in the Directors’ Remuneration Report section of this report; see pages 106 to 127. A target is set on assessing employee engagement, diversity and corporate social responsibility.
1 Delta Programme: flood safety, freshwater and spatial adaptation | Delta Programme | Government.nl.
NCC Group plc — Annual report and accounts for the year ended 31 May 2022
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