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 products help to bring environmental and social benefits in many of our markets. Our technologies support the generation of clean, renewable energy and improve energy efficiency. We provide products that are helping with the earlier diagnosis of disease thereby supporting better outcomes for patients. 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.

Oversight and governance of our environmental strategy and performance will be managed through our newly formed Sustainability Committee. This will be chaired by Susan Searle and includes representatives from the G&H Executive team.

Our SVP Global Quality is responsible for the coordination of our actions in the area of environmental management and chairs the Sustainability sub-committee. Responsibility for local planning and performance lies with our site managers who work with our site environmental champions to formulate and deliver projects.

We receive external recognition for ESG matters. We received a rating of A in MSCI’s latest ratings report.

From FY2024 we will also be working with EcoVadis and CDP on their climate change surveys.

We are targeting to be net zero for scope 1 & 2 emissions by 2035. We are proud that in FY2023 we made a further significant reduction in our emissions. During FY2024 we will also be assessing which of the scope 3 emission metrics it may be practical for us to report against and what reduction targets may be possible.

In FY2023 we moved our Cleveland, Ohio facility to renewable electricity. Given the high temperature requirement for crystal growth conducted in that facility this assisted materially in the reduction of our scope 2 emissions in the year.

Each of our sites has developed a plan to reduce its electricity consumption. Progress against these plans is reviewed on a quarterly basis by the Executive team.

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. 2022 Conversion factors have been used for October 2022 to May 2023 inclusively, and 2023 Conversion factors used for June 2023 to September 2023 inclusively. In the US eGrid 2019 Conversion factors have been used for October 2022 to January 2023 inclusively, and eGrid 2020 Conversion factors used for February 2023 to September 2023 inclusively.

We have selected as our primary intensity measure carbon dioxide emissions per £1m of revenue for our global scope 1 & 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.