The Company’s new ESG Committee has been set up to, inter alia, drive reduction of the Group’s impact on the natural environment and its adaptation to climate change. Its remit includes:
- Greenhouse gas emissions
- Energy consumption
- Generation and use of renewable energy
- Other emissions
- Resources efficiency
- Biodiversity and habitat
- Impact on water resources and the status of water bodies
- Reduction and management of waste
The Group believes that incorporating sustainability and solid environmental principles into our everyday operations, now more than ever before, is fundamental to ensuring successful, long-term outcomes for our business, for our employees and for the community.
We recognise the adverse consequences of CO2 and other greenhouse gases on our environment, and we are committed to reducing the impact associated with the whole Group’s energy usage. The Board and senior management are wholly committed to delivering continual environmental improvements across the organisation, as well as assisting the global automotive sector to develop new technologies that will reduce CO2 emissions and drastically improve road safety.
We will continue to deploy green technology wherever possible and appropriate, and to make careful and considered decisions in all our operations to reduce our current carbon footprint.
The Board has continued its focus on increasing the use of ‘clean inputs’: investing in renewable power at the premises owned by the Group accompanied by the use of renewal energy from renewable energy providers to meet the Group’s energy needs, to drive the agenda of sustainability across the Group.
The Board believes that investing in renewable technology is another important way to eliminate carbon from the Group’s operations. The Group’s new Engineering Design Centre was completed in March and since its occupation, the building has been partially powered by solar energy.
Last year the Company also obtained planning consent for the installation of solar panels on the roof of the existing headquarters building in the UK. These have now been successfully installed, and despite only being active for part of the year have already generated 62,030kWh of power.
As renewable energy generation is not viable at all Group facilities (we lease most of our premises), we have taken the decision to meet our global energy needs directly from renewable power providers, wherever possible.
Last year AB Dynamics in the UK centralised the procurement of gas and electricity for our UK activities; this three-year process to move all facilities to Engie is continuing. Engie offers 100% UK generated renewable power from certified renewable sources and is fully certified as zero carbon emissions by UK Renewable Energy Guarantees of Origin (REGOs), providing complete traceability of the energy it supplies to the Group.
This year we have also directed each of our subsidiaries to procure renewable energy. Whilst this has not always been achievable, as for example in some instances the supply of power is sourced by our landlords, we have undertaken to lobby our landlords to move their contracts to a renewable provider. We believe that switching to renewable power is the simplest approach to significantly lower our carbon footprint, benefit the environment, and demonstrate our commitment to sustainable business practices.
The Group’s activities can be summarised as largely manufacturing/assembly operations, combined with office-based research, product development and other commercial functions, where we receive materials and products from suppliers, assemble them into product and dispatch to customers. The acquisition of the Vadotech Group has increased the remit of these operations to include an element of on-road vehicle testing.
Therefore, the Group’s main impact on the environment is the consumption of heating and power and fuel or electricity for customer vehicles while providing test services and developing and testing products.
The Group remains committed to identifying and assessing environmental risks, such as packaging waste, arising from its operations. Waste management initiatives are encouraged and supported by the Group and materials are recycled where practicable. Local management teams are committed to good environmental management practices and are responsible for implementing the necessary initiatives to meet their local obligations. The Group’s largest subsidiary Anthony Best Dynamics Limited is currently working towards ISO 14001 accreditation.
Each facility participates in recycling paper, plastic, cardboard and wood from pallets and continues to focus on minimising energy consumption through the efficient use of heating and lighting. The Group’s usage of water is minimal and predominantly relates to cleaning, bathrooms and staff refreshments.
As the Group does not use its own logistics or freight, its primary direct energy usage and related CO2 emissions arise from its facilities and vehicles. The Group has undertaken significant steps to reduce its consumption as described above through both internally generated and purchased renewable energy and will also include staff awareness campaigns in the coming months.
As a business, we continue to assess our impact on the environment and try to mitigate or reduce the Company’s energy consumption wherever possible. Our new ESG Committee has been responsible for designing and implementing the Group- wide approach needed to affect the reduction of energy usage. The first steps in this initiative are to: collate Group-wide data so the Group can fully understand its energy usage (and create a Group baseline), create a Group-wide strategy, and formulate the necessary policies and procedures to back this up; and finally, to set an appropriate target. Whilst the COVID-19 pandemic has significantly reduced our employee travel in the year, it has made our data collection (to set a Group-wide baseline) more challenging. Nevertheless, the Group’s data can be found further below. The Committee has also set the ambitious target of reducing the Group’s net carbon emissions to zero by 2030.
This year the ESG Committee has set the target of net zero carbon emissions by 2030. The Group remains totally committed to reducing our emissions and feels that this ambitious target will provide a focus for our activities.
We recognise the impact that greenhouse gas emissions have on our environment.
This is the Group’s second year reporting its emissions in this manner. Previously we have reviewed and included data from our main UK operations only.
This year we now collate data on a global basis, including all our subsidiaries both in the UK and overseas. As this will increase the Company’s overall usage figures, we have broken down the data to provide a like-for-like comparison (for UK figures) as well as providing the results for the whole group.
As the COVID-19 pandemic has significantly reduced both local and international travel, the figures for 2020 and 2021 will be artificially low.
AB Dynamics plc energy consumption and emissions
|Scope 1: Direct emissions from owned / controlled operations||tCO2e||138.81||127.73||411.21|
|Scope 2: Indirect emissions from the use of electricity||tCO2e||132.22||147.44||545.63|
|Scope 3: Emissions from sources which we do not own and include business travel, water consumption etc.||tCO2e||240.29||53.32||162.99|
|Underlying energy consumption used to calculate emissions||kWh||1,168,699||1,391,416||3,197,215|
Notes: Vadotech and Zynit only joined the Group in March as such the Group data only includes their emissions data for March to August. Source data (meter readings) have been used wherever possible; where this is not available this has been supplemented by billed data and a small amount of estimated data. Appropriate conversion factors have been used to calculate the underlying energy consumption figures; all UK Conversion Factors were taken from the UK Government GHG Conversion Factors for Company Reporting 2020 issued by the Department for Business, Energy & Industrial Strategy & Department for Environment Food & Rural Affairs. These factors were also used in the main for our overseas companies except for emissions from electricity and/or gas where conversion factors were taken from the US Environmental Protection Agency for our US Subsidiaries or other on-line factor conversion tools such as Carbon Footprint Ltd, Kyles Converter.com and unearthtools.com for our other subsidiaries. Certain data, estimated to be immaterial to the Group’s emissions, have been omitted as it has not been practical to obtain (use of certain types of public transport: buses/tubes/rail). Metering and monitoring improvements continue to be implemented to capture and improve the Company’s data stream. Previously the carbon figures published related to AB Dynamics plc and Anthony Best Dynamic Limited (a large unquoted company) only, their emissions were divided by the total Group revenue to create the intensity ratio (tCO2e per £m) published in our Annual Report last year. However, now we are collating data for the Group we have corrected the prior year’s intensity ratio to the Revenue of Anthony Best Dynamics Limited only (as recorded in their statutory accounts) to allow for appropriate like-for-like comparison.