Environmental Impact

We want to support the journey to addressing climate change and we are working hard to mitigate our own impact on the environment.

G&H is proud that many of our products are supporting the cleaner, more efficient generation and use of energy across a range of applications.

We are also working hard to mitigate our own impact on the environment. Our investments in solar panels and voltage optimisation systems are already lowering our greenhouse gas emissions and in the UK all of our purchased electricity now comes from clean, renewable sources. Our Executive management team have developed a plan with the objective of delivering annual reductions in the energy used by the Group and therefore its carbon equivalent emissions and are on track to achieve net zero scope 1 & 2 emissions by 2035.

We include climate and environmental risks as part of our overall risk management processes. The Group risk register is reviewed by the Audit Committee and the Board. We have identified environment, sustainability and climate change as a principal risk for the Group given the reputational risk to the Group if we fail to deliver upon our sustainability agenda as well the physical risk that climate change poses to our operations.

Environmental and Sustainability Governance Oversight and governance of our environmental strategy and performance is managed through our Sustainability Committee, chaired by our non-executive director Susan Searle. The introduction of our Board’s Sustainability Committee supported by its Sub-Committee which is staffed with representatives from across the Group has provided further momentum and awareness within our business of not only environmental matters but also our broader sustainability agenda.

An internal framework has been developed that encompasses all these factors under the banner of the ‘G&H Sustain’ initiative. We are also extending our work in the area of environmental sustainability into our supply chain. For a number of years G&H has partnered with Assent Compliance to proactively engage with our supply chain. This year we incorporated the Supply Chain ESG Module as a means of extending our ESG awareness throughout our value chain.

We continue to invest in our sites to help them reduce their emissions:

• Our Torquay facility has a 297 kWp solar PV system installed which provides ~18% of the site’s electricity needs along with a Voltage Optimisation System. Having switched gas heating to electrical alternatives the site has become the first within the G&H Group to be net neutral for Scope 1 & 2 GHG emissions.
• Our Ilminster facility has a 302 kWp solar PV system which provides ~7% of the site’s electricity needs and this year introduced a Voltage Optimisation System
• Our Ashford facility benefits from two phases of Solar PV, phase 1 – 150Kwp, Phase 2 – 35KWp which now also incorporates 9 battery storage units that provides ~50% of the site’s electricity needs.
• Our recent acquisition, G&H | Artemis (Plymouth), already has a Voltage Optimisation System but will also add a PV Solar 129KWp installation during FY2025.

As a result of these investments, we will have the capacity to generate approximately 900 kWp of electricity from solar sources. Collectively these have generated around 2,500 MWh’s of electricity since their installation.

We are targeting to be Net Zero for Scope 1 & 2 emissions by 2035. We are pleased that in FY2024 we made a further significant reduction in our emissions. During FY2025 we will also be assessing which of the Scope 3 emissions metrics it may be practical for us to report against and what reduction targets may be possible.

The primary drivers of our Scope 1 & 2 emissions reduction in the year were:

• The transfer of our Cleveland, Ohio site to renewable, purchased electricity.
• A reduction in energy consumption as a result of site improvement activities.
• Further investment in solar panels

Our emissions data is calculated centrally from data collected locally. In reporting our carbon dioxide emissions, we have followed the UK Government’s Environmental Reporting Guidelines. We have also followed the Greenhouse Gas (GHG) Reporting Protocol and the Streamlined Energy and Carbon Reporting (SECR) guidelines. 2023 Conversion factors have been used for October 2023 to May 2024 inclusively, and 2024 Conversion factors used for June 2024 to September 2024 inclusively. In the US eGrid 2021 Conversion factors have been used for October 2023 to January 2024 inclusively, and eGrid 2022 Conversion factors used for February 2024 to September 2024 inclusively.

We have selected as our primary intensity measure carbon dioxide emissions per £1m of revenue for our global scope 1 and scope 2 GHG emissions (expressed in tonnes of carbon dioxide equivalent). We are using an operational control boundary for direct GHG emissions. For Scope 1 emissions we include our total owned and leased vehicles’ direct emissions impact. By far the largest element of our energy usage is our US Scope 2 purchased electricity. Our reported data is collected from metered sources.