Metrics and targets
Below are Redde Northgate’s energy and carbon reporting metrics as required under SECR. These cover our Scope 1 and Scope 2 emissions and have been independently verified.
This section incorporates the requirements for reporting of greenhouse gas emissions, energy consumption and energy efficiency actions included in the Companies Act 2006 (Strategic Report and Directors’ Report) Regulations 2018 (the Regulations).
Decoupling emissions from business growth
The analysis of GHG emissions, along with the modelling of expected business growth has enabled us to set two interrelated targets, with the approach used informed by a science-based target methodology. In addition, we undertook an assessment of over 15 peer group companies to evaluate the range of emission reduction targets being set in our industry.
From the starting point of our FY2022 baseline, we are committed to using 100% renewable electricity and to an absolute Scope 1 and Scope 2 emission reduction target of 10% by 2027.
The absolute GHG emission reduction target is ambitious when considered in the context of our growth plans, along with the limited availability of EV and hybrid commercial vehicles.
From targets to action
A detailed transition plan is being developed which sets out what mitigation actions we will take to achieve the 10% absolute reduction target by 2027. The Sustainability Committee and the supporting subgroups will play a pivotal role in mapping out the reduction trajectory and managing the emission reduction activities.
We are finalising work on a GHG management plan which will prescribe the processes and systems we will use to accurately capture and report on fuel, energy, and emissions data.
Moving to a low carbon future needs the right people in Redde Northgate, with the right skills, knowledge, passion and motivation to deliver. The transition plan will summarise the learning pathways contained within a carbon literacy training programme that will help our people better understand how they can contribute towards the achievement of the targets.
The Sustainability Committee and the supporting sub-groups will play a pivotal role in setting operational level sub-targets which will measure the impacts of emission reduction activities. We are finalising work on a separate GHG Management Plan which will prescribe the processes and systems we will use to accurately capture and report on fuel, energy, and emissions data.
Energy and carbon reporting
This section incorporates the requirements for reporting of greenhouse gas emissions, energy consumption and energy efficiency actions included in the Companies Act 2006 (Strategic Report and Directors’ Report) Regulations 2018 (the Regulations).
Reporting and baseline year
We have aligned our reporting and fiscal years, so the information presented covers the period from 1 May 2021 to 30 April 2022. Given the materiality of the change following the introduction of FMG RS emissions data, this year will also replace the year ended 30 April 2021 as the baseline data for subsequent periods, since we do not have the equivalent data to restate the previous baseline.
| Greenhouse gas (CO2e) emission source | Current reporting period May 22 – Apr 23 | Previous reporting period May 21 – Apr 22 | Baseline reporting period May 21 – Apr 22 |
|---|---|---|---|
| Scope 1 – Combustion of fuel and operation of facilities | 22,829 | 19,773 | 19,773 |
| Scope 2 – Electricity, heat, steam and cooling | 4,165 | 4,284 | 4,284 |
| Revenue (£m) | 1,337 | 1,094 | 1,094 |
| Intensity ratio: Tonnes of CO2 e per £m of revenue | 20.2 | 22.0 | 22.0 |
| Non-UK emissions – Scope 1 | 5,041 | 3,187 | 3,187 |
| Non-UK emissions – Scope 2 | 1,011 | 939 | 939 |
| UK emissions – Scope 1 | 17,788 | 16,586 | 16,586 |
| UK emissions – Scope 2 | 3,154 | 3,345 | 3,345 |
| Energy consumption | 2023 (kWh) | 2022 (kWh) | 2022 (kWh) |
|---|---|---|---|
| Scope 1 – Combustion of fuel and operation of facilities | 100,186,831 | 90,844,288 | 90,844,288 |
| Scope 2 – Electricity, heat, steam and cooling | 20,799,832 | 20,390,430 | 20,390,430 |
| Non-UK consumption | 25,604,336 | 18,323,458 | 18,323,458 |
| UK consumption | 95,382,328 | 92,911,260 | 92,911,260 |
Analysis
We have aligned our reporting and fiscal years, so the information presented covers the FY2023 period from 1 May 2022 to 30 April 2023. Following the introduction of FMG RS emissions data in FY2021, FY2022 was considered a suitable year to establish as our baseline year and we have subsequently used FY2022 as the starting point for our emission reduction targets.
Our absolute Scope 1 emissions grew by 13%, which is due to an increase in our fleet size and a larger number of vehicles being repaired in our workshops, which use gas for heating and operations. Our Scope 2 emissions reduced by 3%. The ongoing LED lights rollout programmes along with the increasing proportion of renewable energy available in the electricity networks accounted for the reduction in Scope 2 emissions. In the reporting year our revenue, excluding vehicle sales, grew by 22% whilst our emission intensity dropped by 8%. 134g/CO2 is the average fuel economy of our total fleet. We have started to measure this average to report on the year-on-year increases in the provision of more fuel efficient and low emission vehicles.
Consolidation approach and organisational boundary
We have derived the emissions data presented using the operational control approach, required under the Companies (Directors’ Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018.
We have included each facility under operational control within the figures. The Group has used the principles of the GHG Protocol Corporate Accounting and Reporting Standard (revised edition), ISO 14064-1.
Methodology
We have used Defra’s current conversion factors in arriving at the information supplied, with the data verified by an independent, UKAS-accredited, third party assessor.
Measuring the carbon footprint of our value chain
Developing a Scope 3 footprint is a vital step towards effectively managing our emissions related risks and opportunities, and reducing value chain GHG emissions.
Working closely with environmental consultants we have taken a “whole lifecycle” approach to determining the carbon emissions of our value chain. Developing this footprint provides clarity on relative risks and opportunities for reduction within our Scope 3 emissions compared with our direct Scope 1 and Scope 2 emissions.
We believe that this will help us to prioritise our reduction efforts, guide our corporate procurement decisions and improve our reputation through disclosure to interested stakeholder groups. These include customers and investors, who themselves are looking to improve their full value chain emissions reporting.
Our analysis of our FY2022 emissions identified that Scope 1 and Scope 2 emissions made up just under 1% of our total value chain emissions with the balance resting in Scope 3, both upstream and downstream.
Key Scope 3 Categories
97% of our emissions sit within 3 categories
c.14%
Category 2 – Capital goods
The embodied emissions within the vehicles we purchase, coming from the extraction of the raw materials used and from within the vehicle manufacturing processes.
How calculated: Information provided from automotive OEMs or estimates from Defra and consultants on vehicle production process missions.
c.43%
Category 11 – Use of sold products
The expected emissions from the fleet vehicles we dispose of throughout the rest of their life with subsequent owners through to scrappage.
How calculated: Derived from our knowledge of the age and mileage of a sold vehicle when compared with the expected operational life of a typical vehicle in that category.
c.40%
Category 13 – Downstream leased assets
The tail-pipe emissions from our vehicle fleet when being driven by customers.
How calculated: We look at the miles travelled by our vehicles when out on rent or as a replacement vehicle while a customer’s car is off the road.
The composition of our workforce and senior management as at 30 April 2023 is set out below. A review of our Board composition and diversity is contained in the Corporate Governance report set out on pages 80 to 85.
| 2023 | 2022 | |||||
| Male | Female | Total | Male | Female | Total | |
| UK and Ireland | 4,055 | 2,068 | 6,123 | 3,717 | 1,808 | 5,525 |
| Spain | 846 | 411 | 1,257 | 808 | 397 | 1,205 |
| Total | 4,901 | 2,479 | 7,380 | 4,525 | 2,205 | 6,730 |
The gender split at senior management level
| 2023 | 2022 | |||||
| Male | Female | Total | Male | Female | Total | |
| Directors | 5 | 3 | 8 | 6 | 1 | 7 |
| Senior Managers | 32 | 15 | 47 | 17 | 5 | 22 |
The Group has expanded the definition of senior management level in FY2023, the 2022 headcounts have not been adjusted to reflect this new categorisation.
We provide a secure and safe working environment for our people and stakeholders. We have a culture of continual improvements and are always trying to reduce our exposure to health and safety risks to eliminate injuries and health concerns arising from our operations.
Our health and safety policy and strategic framework sets out the Group standards and expectations which our leadership and local management teams adopt. This enables our leadership teams to implement the appropriate levels of control and compliance within their areas of responsibility. Senior leaders across all our operations also ensure they are accessible to their teams to discuss health and safety matters and maintain a continual dialogue.
We monitor our accident frequency rate (AFR) and other performance metrics in health and safety very closely. This year our AFR was 1.8 which is a slight increase on the prior year AFR of 1.7. An increase in the volume of activity across our workshop and body shops, which are more hazardous in nature than our administration centres, will have contributed to this increase. Nevertheless, we have undertaken an analysis of incidents during this period.
We are accredited to the internationally recognised standards of ISO 45001 Health and Safety Management Systems Standard across Northgate UK&I, New Law and Auxillis. Our plan is to expand this accreditation to other parts of the business over time.
