We want to end our dependency on virgin fossil materials and fuels, making significant emissions reductions across our value chain through energy efficiency, renewables, material and transport choices.
Our mid-term targets
Reducing our emissions
We are committed to continuing to reduce our Scope 1 and 2 emissions, and setting a target for reducing our Scope 3 emissions. Since 2019, we have reduced our Components absolute Scope 1 and 2 CO2e emissions by 27%. Indexed to revenue, emissions intensity has declined by 35% against our baseline year, and 23% since 2021, meeting our target set in 2020 three years early. In 2022, as a result of our continued transition to renewable energy across our sites, renewable electricity now accounts for 31% of total electricity usage across the Components business, an increase of 15% compared to 2021.
2022 also saw our first solar project commence in Rayong, Thailand. We have also continued our energy efficiency projects, including eight machine replacements globally, energy audits and the installation of energy monitoring software at our Kidlington site.
In 2022 we also committed to resetting our near–and long-term Company-wide emission reductions in line with science-based net zero with the SBTi, including Scope 3, and plan to submit our targets for validation in 2023.
Building a net zero action plan
In August 2020 we announced our ambition to become carbon neutral in our direct operations by 2040, alongside a 25% reduction in emissions intensity by 2025.
In 2022, when reassessing our ESG strategy as a pure-play Components business, we refreshed this ambition in line with the latest scientific thinking by committing to reach net zero in our direct operations by 2040; and in our value chain by 2050, as well as a commitment to submit our net zero targets alongside new near-term emissions targets to SBTi. This means in 2023 we will develop a new near-term absolute emissions target for 2030, alongside a Scope 3 emissions target, to reduce our direct absolute emissions and the emissions in our value chain. These targets will align to the requirements of the Corporate Net Zero Standard. During 2023 we will also be developing the detailed plans we need to guide our progress across our manufacturing facilities, distribution centres, offices and fleet on our net zero journey.
To drive collaboration and industry-wide action, in 2022 we joined the UN Global Compact’s Business Ambition for 1.5°C and the UN Race to Zero, aligning to best-practice guidelines and to drive positive change. To support the delivery of our target, we will develop a Climate Transition Plan in line with the UK Government’s new Sustainability Disclosure Requirements.
We have reviewed the Transition Plan Taskforce consultation documents and will review the standards for transition plans when published to ensure our approach is fully aligned.
We are also working on a net zero target for our Scope 3 emissions by including our products and their distribution. In 2021 we started by baselining our Scope 3 emissions, and in 2022 we developed a Components Scope 3 baseline to support the new business. In 2023 we are finalising our Scope 3 net zero targets and will be submitting these alongside our refreshed direct emissions net zero targets to the SBTi for verification.
Waste management and reduction
We aim to be Zero Waste to Landfill (ZWTL) across our operations, as well as minimising the waste we generate across the product lifecycle. In 2022 a further 12 sites achieved ZWTL, taking our total across three divisions to 34. Six of these sites are within Components, taking the new total for sites to 12 or 33% of all sites from 2023 onwards.Overall, 76% of waste is diverted from landfill across Components.
Our waste intensity in Components has reduced by 25% against our 2019 baseline meeting our 2030 target. However, it has increased significantly compared to 2021. This is mainly due to the acquisition of Hengzhu, and we are developing an action plan to reduce waste volumes further across sites in 2023.
Water use across our manufacturing processes is low as our products do not contain water. However, we have seen an increase in total water usage across operations as site operations increased post-pandemic, and due to growth through the acquisition of Hengzhu.
We have identified two water basins in water stressed regions where we have manufacturing sites (Istanbul in Turkey, and Kidlington in the UK), and will be focusing our water efficiency actions on these sites in 2023.
You can read more in our 2022 Annual Report here