Task Force on Climate-related Financial Disclosures
We are continuing our TCFD journey as part of our commitment to responsible business and, through our disclosures, enable our stakeholders to better understand our position regarding climate-related risks and opportunities.
The Task Force on Climate-Related Financial Disclosures (TCFD) is committed to increasing market transparency on climate-related risks and opportunities. In 2017, the TCFD released climate-related financial disclosure recommendations designed to help companies provide better information to support informed capital allocation.
Through the processes involved, including climate-related scenario analysis, and better understanding of our footprint and impacts, we are also developing our own capacity to successfully manage and mitigate climate-related risks and ensure we are well-positioned to harness climate-related opportunities.
TCFD report
A full disclose of climate-related risks and opportunities for Redde Northgate, in accordance with the 11 TCFD disclosure recommendations was included in the Annual Report. The TCFD disclosure included in the Annual Report followed on from the voluntary disclosure contained in last year’s Annual Report. Our latest TCFD disclosure builds on the previous years and now quantifies the impact of climate-related opportunities for our business. Through our disclosures, we seek to improve transparency and facilitate discussions with stakeholders on this key issue. This report details an enhanced understanding of our emissions footprint and impacts; together with the measures necessary to respond to and manage climate-related risks and to harness opportunities in what is an uncertain global emissions future.
The following TCFD performance dashboard outlines the actions we have taken following the first TCFD report in FY2022. Redde Northgate, along with many other organisations is on a journey towards fully aligned and complete TCFD reporting, consistent with emerging best practice. The expectation is that by improving TCFD disclosures we can develop a clearer understanding of the optimal business model required to succeed in a low carbon economy.
On-track
Further development needed
| Standard | Disclosure | Status | 2024 Next steps |
|---|---|---|---|
| Governance | A Sustainability Committee has been formed with the first session being held in April. | | The Sustainability Committee’s focus for the first half of the year will be agreeing the mitigation actions necessary to deliver the carbon reduction targets. The committees, longer-term role will be to evaluate the degree of progress being made towards achieving the targets and the continuing suitability of mitigation actions being taken. |
| ESG training, including climate change, was delivered by an external provider to the Board. | | Update ESG policies, including the policy on climate change, to reflect the new carbon reduction targets that have been set. The revised policy will summarise actions to manage both the physical and transitional risks for our business, while also seeking to maximise the business opportunities from advancing towards low carbon mobility. | |
| A Head of ESG was appointed to lead on sustainability and climate change. | | Develop a new approach to ESG and climate change action, including a broad spread of non-financial targets and metrics. A framework will be developed in FY2023 containing a suite of ESG commitments which will reinforce Redde Northgate position as a sustainable and responsible business. | |
| Strategy | Undertaken a double materiality exercise to link financial and environmental impact. | | Moving to a low carbon future needs the right people in Redde Northgate, with the right skills, knowledge, passion and motivation to deliver. We will be developing a carbon literacy training programme to improve the decarbonisation knowledge and skills of our people. The programme will provide guidance and support to our people so that they can better understand the carbon costs and impacts of our operations, activities and services. |
| Sustainability sub-groups have been formed to develop the climate change mitigation strategy and approach. | | A net zero transition plan is being developed that will set out the principles we will follow and the mitigation actions we will take to respond to the global call to action to tackle climate change. The plan will provide our stakeholders with a clear pathway to achieving our targets. | |
| Undertake site energy assessment to inform the transition plan and meet our obligations under the Energy Savings Opportunity Scheme (ESOS). Additionally, we will be developing energy performance reports for all offices and branches, with the expectation being that this reporting will help drive a culture of energy efficiency and carbon reduction, throughout the Company. | |||
| Risk management | Physical risks were assessed for operating location throughout UK&I and Spain. | | Assess the continuing suitability of business continuity plans to address issue such as heatwave and floods. |
| Transition risks were explored by applying IEA’s Net Zero by 2050 scenario and National Grid decarbonisation scenarios. | | Develop, with the support of the sub-groups, a suite of ESG metrics to measure and report on transition risks. These metrics, including both financial and non-financial measures, will be reported within corporate ESG scorecards to support decision making. | |
| Metrics and targets | Absolute emission reduction targets set for Scope 1 and Scope 2. | | Communicate and operationalise the targets throughout the Group. |
| Upstream and downstream Scope 3 GHG emissions mapped and reported. | | Continue evaluation of Scope 3 data to work towards the setting of a Scope 3 reduction target within the next two to three years. The expectation is that enhancing our Scope 3 reporting capability will equip us with the knowledge and expertise necessary to fully support our customers carbon reporting and decarbonisation modelling. | |
| Finalise the GHG Management Plan to prescribe the process and systems for effective GHG emission data gathering. An internal review of the monitoring and reporting procedures outlined within the plan will be carried out annually to ensure accuracy and compliance. The plan will also be subject to review and verification and a third party. |
A full disclose of climate-related risks and opportunities for Redde Northgate, in accordance with the 11 TCFD disclosure recommendations is included in the Annual Report.
Set out below are some of the key findings of our second year TCFD programme:
Our Board of Directors has ultimate responsibility for the Group’s ESG strategy and activities, including ensuring best practices, emerging trends and key issues related to ESG strategy, governance and risk management are properly considered. Our sustainability strategy is taken into account in our financial planning, including through active Board oversight. Both the CEO and CFO report at Board meetings on a regular basis regarding progress on this strategy, including key activities, implementation and progress against emissions reduction targets. Further detail on our ESG governance is set out on page 64 of our FY2023 annual report.
Redde Northgate’s long term climate commitment is to be net zero by 2050; and we view the transition to low carbon mobility solutions as fundamental to our business strategy. Our support for customers’ transportation decarbonisation actions includes both consulting and the provision of EV vehicles and related charging infrastructure and green energy. We are also active within our supply chain with collaborations and supporting policy initiatives to help accelerate the transition for what is a hard-to-abate sector. Further detail on our ESG governance is set out on page 64 of our FY2023 annual report.
The Board has responsibility for the Group’s overall approach to risk management and internal control, which includes ensuring the design and implementation of appropriate risk management and internal control systems. Climate transition issues are considered both fundamental to our commercial success and such risks and opportunities are assessed both against relevant financial planning horizons and aligned with our customer strategy and demand requirements.
Further details on the potential risks and our mitigating actions are documented in the risk management section found within pages 66 and 67 of our FY2023 annual report.
Redde Northgate seeks to enhance its disclosures through improved year on year reporting; in the past year this has included quantification of Scope 3 emissions for FY2022 and the setting of operational emission reduction targets as an interim measure towards our net zero by 2050 ambitions. Our emissions accounting follows the GHG protocol standard and, where possible, prioritises supplier or product-specific activity data to improve inventory quality.
Redde Northgate’s targets
- A 100% renewable electricity target for direct operations by FY2027;
- A 10% reduction in Scope 1 and Scope 2 (market-based) emissions by FY2027 from a FY2022 base year.
| Short term: | 0-3 years (up to 2025) |
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| Medium term: | 3-8 years (up to 2030) |
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| Long term: | 8+ years (up to 2050) |
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