Climate Change
In 2024, we were pleased to maintain our ‘B’ CDP Rating, based on the 2023 reporting period and associated emissions.
Scope 1 and 2 Emissions (Own Operations)
Scope 1 and 2 Science-Based Target
We received approval from the Science Based Target initiative (SBTi) in early 2024 for our two science-based targets. Our first SBTi target is to reduce our absolute Scope 1 and 2 emissions by 50% by 2030 from a 2019 baseline year, in line with the SBTi 1.5˚C aligned pathway for targets.
2024 Scope 1 and 2 Carbon Emissions
In early 2025, we completed our carbon footprinting exercise for 2024 Scope 1 and 2 emissions. The results of this exercise are set out in the tables and graphs below. With our revenue growing by 8.5% in 2024, we were pleased to be able to keep our global consumption of energy and fuel stable, with decreases in some areas and business growth-driven increases in others. This has led to a reduction in our combined Scope 1 and 2 absolute emissions of 305 tCO2e (4.8%) compared to the 2023 total, largely due to decreases in several emission factors used to calculate our carbon footprint. This means that despite our strong organic business growth in 2024, we have achieved a 12.3% decrease in our carbon intensity measure (scope 1 and 2 emissions total divided by revenue).
Electricity for our buildings remains the highest source of emissions, which we have maintained at a stable level, year-on-year. Fuel for company-owned vehicles (being mainly cars for staff in field-based roles, as nearly all of our distribution logistics is outsourced and covered in Scope 3) is the second-highest contributor. Here we have an increasing number of hybrid and fully electric cars being used.
Progress Against SBTi Target
We have now achieved a 22.8% overall reduction in absolute Scope 1 and 2 carbon emissions since our baseline reporting year of 2019 and this puts us on track to reduce our Scope 1 and 2 emissions by 50% by 2030, as per our SBTi target. The graph below shows our progress against our Scope 1 and 2 SBTi target and our intensity measure trend.#
Plans for Scope 1 and 2 Decarbonisation in 2025
As our business grows, we know we will need to carry out more carbon reduction initiatives in
the years ahead to ensure our absolute carbon footprint continues to decrease, aligned to our SBTi goal of halving Scope 1 and 2 emissions by 2030. As part of our emerging Climate Change Programme we will be identifying carbon hotspots across our Group-wide carbon footprint and prioritising projects to tackle those areas. With our carbon footprint analysis showing that electricity and fuel for our company-owned vehicles are the two main drivers of Scope 1 and 2 emissions, we will be focusing our actions on areas such as self-generating renewable energy, increased building efficiencies, a more electrified version of our fleet of cars and behavioural changes. We will also be ensuring any new warehouses we move into or develop in the coming years have strong environmental credentials to ensure our business growth can be achieved whilst continuing to reduce our carbon footprint.
Scope 3 Emissions (Value Chain)
Scope 3 Science-Based Target
Our second SBTi target that was also approved in early 2024 is to ensure that 73.5% of our suppliers by emissions covering purchased goods and services will have science-based targets by 2027.
2023 Scope 3 Emissions
In 2024, we completed our Scope 3 carbon footprint for 2023 with the support of external environmental consultants (see below table). Our purchased goods and services category analysis was based on spend data that was input into the Environmentally-Extended Input Output (‘EEIO’) spend-based tool. We will be carrying out the analysis of our 2024 Scope 3 emissions in the first half of 2025.
Scope 3 Emissions Reduction
While our Climate Change programme will initially be prioritising reducing our Scope 1 and 2 emissions, we will also be looking across certain relevant categories of Scope 3 and identifying where we can make improvements through a range of initiatives in the years ahead. As part of our Responsible Sourcing Programme, we will be working with our partners to identify ways of decreasing our Scope 3 emissions during 2025 and beyond. We are conscious that almost 10% of our Scope 3 carbon footprint arises through our outsourced transport and distribution. During 2024 we continued a trial with our first ever electric Transit van in partnership with a leading pharmaceutical supplier and we are currently reviewing the lessons learnt from that trial to shape our plans for longer-term decarbonisation of our logistics.
Progress against SBTi Target
As of 31 December 2024, we estimated 40%–50% of our suppliers by emissions covering purchased goods and services have approved science-based targets. In order to keep making progress against this target, we have started an active Responsible Sourcing programme to work with our suppliers and partners in tackling the challenges of reducing emissions and identifying ways in which we can work together with them to reduce our collective emissions.
Climate Scenario Analysis
The Group conducted a transitional and physical scenario analysis in 2023 that helped identify and evaluate our climate-related risks and opportunities. We will be refreshing this work during 2025 as part of our CSRD preparation work.
Taskforce on Climate-Related Financial Disclosures ("TCFD") and EU Taxonomy
In 2024, there was continued discussion around environmental, social and governance matters
and emissions management by the Board. The Board received regular reports on Sustainability and considered specific climate-related risks and opportunities as part of its bi-annual Risk Register Review. Further details in relation to the Group’s actions in alignment with Taskforce on Climate-Related Financial Disclosures (‘TCFD’) are set out in the following table.
In addition, the Group carried out an assessment of the extent to which the Group’s activities are aligned to the EU Taxonomy Regulations and the results of this assessment are set out in the Directors’ Report on page 102 of the Annual Report.
Group Environmental Policy
The Group has an Environmental Policy in place and outlines our responsibility and commitments. We are committed to driving positive environmental change within the integrated healthcare industry. We understand that environmental stewardship is not just a responsibility but a prerequisite for a sustainable future. These standards are communicated to, and expected of, all employees. A copy of our Environmental Policy is available here.