UK directors’ report, disclosure of greenhouse gas emissions

Renishaw plc – Annual report – 30 June 2018

Industry: manufacturing

Corporate social responsibility (extract)

Environment

Our environmental management activities are controlled by our Group Business Code which is supported by our Environmental and Waste policies. There are a variety of other policies and management controls as deemed appropriate dependant on the material impact to our business activities and the environment.

This year we have extended our Carbon Trust Standard certification for carbon to include all our UK locations and our manufacturing and assembly locations in Ireland and India. Through these efforts we now have 70% and 62% of our global energy consumption and greenhouse gas (GHG) emissions respectively, within the scope of this certification. This standard is independent confirmation that we have genuinely measured, managed, and reduced our GHG emissions.

Within this reporting period we have achieved an absolute reduction in our total GHG emissions of 24% (using market based calculations) and our normalised statutory emissions have decreased by 18% (location based calculations) and 64% (market based calculations). Renishaw is legally obliged to report on Scope 1 and 2 emissions (as defined by the Greenhouse Gas Protocol). However, through analysis, it is clear that our Scope 3 emissions amount to a significant proportion of our carbon footprint. The details of our GHG emissions for this year are shown in the table opposite.

To calculate our GHG emissions we have used the GHG Protocol Corporate Accounting and Reporting Standard (revised addition), data gathered for our Carbon Reduction Commitment submission, and the UK Government’s GHG reporting guidance, as the basis of our methodology and the source of emissions factors. Our GHG emissions are based on actual data taken from bills, invoices, meter readings and expense claims wherever possible.

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1 2017 figures have been restated due to improvements in our methodology, updated GHG conversion factors and replacing the calculation used for the June 2017 data last year – see footnote 3.

2 Statutory emissions are Scope 1 and 2 as required by the Companies Act 2006 (Strategic Report and Directors’ Report) Regulations 2013.

3 To facilitate the timely capture of information, this disclosure uses internally reported data from July to May and the June data is given as an average of the previous three months. This will be restated next year if a significant difference is seen.

4 Total GHG emissions include Scope 1 and 2 (statutory) and significant Scope 3 (voluntarily reported) emissions.

5 Market based electricity is used where it is available to us. This is currently only within the UK and Europe. Where market based factors are not available location based factors are used in their place. Currently 85% of electricity consumed is covered by market based factors.

6 Well to Tank and Transmission and Distribution losses total, use location based conversion factors for calculations.

For our Scope 1 and 2 emissions, less than 1% of the data is based on estimates from averaged data sets.

During this reporting period we commissioned our first overseas solar array, this was installed at our manufacturing facility in Pune. It has a potential generating capacity of 840,000 kWh per annum, which amounts to around 42% reduction of the site’s energy demand.

During this year we have completed an energy saving project on our production machinery, which now puts it into an energy saving mode when not in use. This project has the potential to reduce our energy demand by around 900,000 kWh per annum.

As part of our continued efforts to reduce the environmental impact of our business activities, we changed our UK half-hourly electricity contract to a certified 100% renewable supply contract. This means that just over 49% of all electricity purchased across the Group is now from a renewable source.

As we have moved to renewable electricity for many of our UK sites we are able to report a 70% decrease of GHG emissions from our electricity consumption, when calculated using the market based method. During the year we have also self-generated around 3.7% of our electricity demand with our four solar arrays.

Whilst our production has increased over the past four years, our electricity demand has stayed fairly even; this is due to the investment we have made in energy efficiency and on-site generation. We intend to continue to roll out our high standards of insulation, double or triple glazing and low energy lighting, coupled with on-site generation where suitable. We believe that our results show that careful investment in appropriate technologies works, reducing cost and risk to the business.

We are pleased to report that our 2016 and 2017 GHG emissions figures have been independently verified by thinkstep ltd and they have found no material evidence to suggest it is not accurate. The methodology was also verified as being compliant with the GHG Protocol Corporate Accounting and Reporting Standard (revised addition).

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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