SUSTAINABILITY IS AT THE HEART OF OUR BUSINESS. IT UNDERPINS OUR STRATEGY. IT DRIVES OUR COMPETITIVE ADVANTAGE.
One of our strategic objectives is to be renowned for sustainability. This means we are committed to managing our impact on the environment and designing sustainable products that minimise the use of water and energy. It is also about sustainability in the widest sense, including our people, governance and communities.
Our ESG program is focused around three pillars:
We recognise the importance of doing the right thing for people – our employees, customers and key stakeholders.
We are committed to doing the right thing for our people - investing in our colleagues and recognise the importance of their opinions to our success. We are continuously working towards a sustainable, safe and diverse working environment to help move the Group forward.
We work closely with our key stakeholders and invest in research and development to ensure our products perform to highest standards, while creating a competitive advantage for our customers to help them achieve their sustainability goals.
We are committed to minimising the environmental impact of our operations, products and services wherever possible. We are working to improve our business and suppliers in a way that supports the future of our planet and local communities.
Achievements and priorities
Approval of
science-based targets
Our emissions targets have been approved by the Science Based Targets initiative (SBTi). This covers our long-term target of net zero emissions across our value chain by 2040 and near-term targets for Scopes 1, 2 and 3 for 2028 (from a 2023 base year).
Published the Group’s first Net Zero
Transition Plan
We have formalised the Group’s SBTi targets and action plans into a Transition Plan Taskforce (TPT) aligned Net Zero Transition Plan.
We continue to invest in carbon reduction initiatives as part of delivering our Net Zero Transition Plan
Recent examples include increasing the percentage of company fleet that is either electric or hybrid, installing LED lighting and energy efficient air conditioning units.
Submitted to CDP for the first time
We achieved a B grade in CDP Climate Change.
Created our Sustainable Products Framework
We are developing a framework to classify our products as sustainable, based on both environmental and social criteria, and working with our brands to understand what proportion of our revenue comes from products classed as sustainable and the implications on future revenue growth.
Enhancing supply chain management
We have published our first Supply Chain Policy, which sets out our expectations of suppliers in relation to environmental and social issues. We plan to continue our discussions around the development of internal and external KPIs associated with our supply chain in the rest of 2024. Of note this year, Triton achieved EcoVadis silver in its first submission.
We continue to innovate in the development of low carbon products
Our brands and products play an increasingly meaningful role developing products that reduce and recycle. Abode’s Naturalé was shortlisted for ‘Water Saving Domestic Product of the Year’ at the Energy Saving Awards 2023.
Launch of Triton’s next generation electric shower, ENVi®
ENVi® became a ClimatePartner certified product through performing a full carbon life cycle analysis and was awarded a special commendation at the BMA Sustainability Awards. The ENVi® shower is expected to generate up to 70% less carbon emissions than a mixer shower connected to an A-rated combi boiler. We plan to drive sales of this product in all channels in financial year 2025.
Embedded our ESG Forum
This team meets regularly throughout the year to develop and review our ESG program. They have worked together to develop our Net Zero Transition Plan and we review progress against milestones each quarter.
Case Studies
Norcros South Africa’s Women’s Forum
The Norcros South Africa Women’s Forum was established in recognition of the fact that the Group operates in an industry that has been historically male dominated, and therefore the structures and facilities in place have generally been designed to accommodate men. The Forum sets out to assist in improving and raising awareness for women within the manufacturing and retail space, working with businesses to improve working structures and facilities and eliminate identified barriers that hinder the desired representation of women within the space.
These barriers include:
- wage gap;
- career advancement limitations;
- home and work commitments;
- hostile work environments; and
- facilities and tools.
The Forum was created to identify and systematically eliminate these barriers, increasing diversity within the business and promoting equity and inclusion.
The Forum focuses on:
- building a community for internal networking;
- opportunities for females within the business;
- empowering women to become advocates for
themselves and other women in the business; - advising on the recruitment and retention of females in
the business; - advocating for the interests and concerns affecting
women; and - promoting professional development.
The Forum includes representatives from women across four South African brands, and includes women from diverse backgrounds, age, occupational levels and race.
The establishment of the Norcros South Africa Women’s Forum is a pivotal step in fostering a more diverse and inclusive working environment. Norcros South Africa remains committed to creating safe workspaces that openly support the development of women into the leadership structures and other areas of the business.
Grant Westfield’s Naturepanel
Grant Westfield is proud to have obtained an Environmental Product Declaration (EPD) Certificate for their Naturepanel collection.
The EPD covers environmental impacts from cradle to grave and has been independently verified by EPD Hub in accordance with ISO 14025. The EPD certification enables suppliers to compare the impacts of materials at the product selection stage, ensuring that the most sustainable options are selected. The process required Grant Westfield to complete a full life cycle analysis of its Naturepanel collection, including raw materials, energy, transportation, use and disposal. Naturepanel is also FSC certified and 100% recyclable.
Triton’s ENVi® shower
This year Triton launched their most ambitious product to date – the ENVi® electric shower.
Designed with style and sustainability in mind, ENVi® features a number of key functions that bring sustainable showering to users far more easily.
An integrated usage calculator tracks how much water and energy each shower uses, and estimates a cost per shower based on this information. Allowing people to see their usage helps them make informed decisions about the amount of time they spend in the shower, helping each of us to reduce our impact, both in our wallets, and on the planet.
What’s more, ENVi® features a built-in timer and Eco‑Mode, reducing shower time by one minute to encourage users to speed up and get clean, saving water and energy in the process.
Finally, ENVi® is Climate Partner Certified, meaning Triton, with Climate Partner’s support, calculated the full life cycle of the product, from cradle to grave, and have set and implemented reduction measures.
70%
UP TO 70% LOWER CO2 EMISSIONS1 THAN A MIXER SHOWER CONNECTED TO AN A-RATED COMBI BOILER
1 Calculated based on 3-person household, 5 showers pppw, 7.5 min average duration at 41°C
VADO’s supplier engagement
VADO collaborates closely with their suppliers to ensure fair treatment, generous pay and excellent working conditions for all workers. Both new and existing suppliers must sign a code of conduct and complete an annual amfori BSCI social audit, with VADO expecting all suppliers to achieve at least a B rating. Additionally, VADO has a dedicated team that regularly visits suppliers to ensure high product standards and adherence to the code of conduct.
VADO met with all its major suppliers this year to discuss emissions reduction targets and how its suppliers can help achieve the targets. Suppliers are sharing individual product level material data, which will allow more accurate emissions reporting and help identify opportunities to collaborate with the suppliers to make meaningful reductions to emissions. This initiative will contribute towards both VADO and the Group’s emissions reductions in the goods and services they are purchasing from suppliers.
Triton’s supplier engagement
Triton recognises the role it needs to play in collaborating with its supply chain partners to influence the full up-and-downstream carbon impact, and are working to give them focus and support so they can join its carbon reduction journey. In the last two years, Triton have carried out detailed supplier audits covering all areas of quality, health and safety, and environmental systems and practises, as well as desktop audits covering energy and water usage.
In 2023, Triton partnered with Contingent, an expert in the field of sustainable supply chains. With Contingent’s support, Triton launched its Sustainability Operating System (SOS) to key suppliers. This engagement provides expert knowledge and an operating model that tracks actions and benefits, and provides Triton with a single view on all supply chain sustainability activity.
By working together this way, Triton are helping its partners take key steps towards their own carbon reduction journeys, whilst they help Triton on its net zero journey.
We have a range of initiatives underway across the Group to reduce our carbon footprint and energy consumption. Below are some examples across the Group from the year:
- Croydex has upgraded all but one of its company cars to electric vehicles and implemented a cycle to work scheme to incentivise employees to cycle to work as well as reducing commuting emissions.
- Fifteen of Merlyn’s fleet have been converted to either hybrid or electric vehicles.
- VADO has fitted two electric car charging points at their Cheddar site and, in the last year, increased the proportion of its fleet that is electric from 18% to 50%.
- Triton has replaced their air conditioning units with more efficient dual heat and cool units, installed four electric vehicle charging points and upgraded 50% of emergency lighting to LED.
- Abode has installed two new air conditioning units and increased the number of hybrid or electric vehicles in its fleet.
- Norcros South Africa has fitted LED lighting at its new store in Rustenburg, phased out old, inefficient air conditioning units, and TAL specifically has improved their manufacturing equipment’s overall efficiency to 75%, using less energy to produce the same amount of adhesive.
Absolute market-based Scope 1 and 2 emissions decreased 9% and absolute energy consumption decreased 11% year on year, making us well on track for our Scope 1 and 2 emissions target. This is, in part, due to load shedding issues in South Africa that have restricted manufacturing at Johnson Tiles South Africa, as well as the implementation of the energy efficiency measures discussed above. The Group’s UK brands’ Scope 1 and 2 emissions have decreased year on year by 16%, which is principally due to Johnson Tiles UK moving from two kilns to one for tile manufacturing, which has resulted in reduced gas consumption. Absolute Scope 3 emissions have increased 6% year on year, principally due to an increase in category 11 emissions from a change in mix in products sold, as well as an increase in the carbon intensity of the UK electricity grid factor used to calculate category 11 emissions. Overall Scope 1, 2 and 3 market-based emissions have increased 4%.
We report our emissions and energy intensity as tonnes CO2e/£m revenue and kWh/£m revenue. Emissions intensity has remained the same this year, whilst energy intensity has decreased 3%.
We have a range of initiatives underway across the Group to reduce our carbon footprint and energy consumption. Below are some examples across the Group from the year:
- Croydex has upgraded all but one of its company cars to electric vehicles and implemented a cycle to work scheme to incentivise employees to cycle to work as well as reducing commuting emissions.
- Fifteen of Merlyn’s fleet have been converted to either hybrid or electric vehicles.
- VADO has fitted two electric car charging points at their Cheddar site and, in the last year, increased the proportion of its fleet that is electric from 18% to 50%.
- Triton has replaced their air conditioning units with more efficient dual heat and cool units, installed four electric vehicle charging points and upgraded 50% of emergency lighting to LED.
- Abode has installed two new air conditioning units and increased the number of hybrid or electric vehicles in its fleet.
- Norcros South Africa has fitted LED lighting at its new store in Rustenburg, phased out old, inefficient air conditioning units, and TAL specifically has improved their manufacturing equipment’s overall efficiency to 75%, using less energy to produce the same amount of adhesive.
Absolute market-based Scope 1 and 2 emissions decreased 9% and absolute energy consumption decreased 11% year on year, making us well on track for our Scope 1 and 2 emissions target. This is, in part, due to load shedding issues in South Africa that have restricted manufacturing at Johnson Tiles South Africa, as well as the implementation of the energy efficiency measures discussed above. The Group’s UK brands’ Scope 1 and 2 emissions have decreased year on year by 16%, which is principally due to Johnson Tiles UK moving from two kilns to one for tile manufacturing, which has resulted in reduced gas consumption. Absolute Scope 3 emissions have increased 6% year on year, principally due to an increase in category 11 emissions from a change in mix in products sold, as well as an increase in the carbon intensity of the UK electricity grid factor used to calculate category 11 emissions. Overall Scope 1, 2 and 3 market-based emissions have increased 4%.
We report our emissions and energy intensity as tonnes CO2e/£m revenue and kWh/£m revenue. Emissions intensity has remained the same this year, whilst energy intensity has decreased 3%.
OUR EMISSIONS TARGETS AND NET ZERO PLAN
Recognising the urgent need to address climate change and reduce greenhouse gas emissions, we have developed ambitious net zero targets and a high-level decarbonisation pathway to manage our value chain emissions going forward. This aligns with our strategy of using ESG to drive our competitive advantage.
As the UK and Ireland’s number one bathroom products group and a leading supplier of bathroom and kitchen products in our geographical markets, our business model already integrates certain emissions-reduction activities and products with sustainable attributes, and we will be increasing our focus on these areas to align our business and our products with a net zero world.
2024
Set baseline measurements for emissions:
Scope 1 and 2 (2023 base year) = 69,278
Scope 3 (2023 base year) = 803,219
Science Based Targets initiative validated our near term targets in 2024
2028
Reduce absolute scopes 1 and 2
GHG emissions by 33.6%
(2023 base year)
Reduce absolute scopes 3
GHG emissions by 20%
(2023 base year)
2040
NET ZERO GHG
EMISSIONS
ACROSS THE
VALUE CHAIN
Download further information here
OUR EMISSIONS TARGETS
AND NET ZERO PLAN
Recognising the urgent need to address climate change and reduce greenhouse gas emissions,
we have developed ambitious net zero targets and a high-level decarbonisation pathway to manage our value chain emissions
going forward. This aligns with our strategy of using ESG to drive our competitive advantage.
Targets
We have set science-based targets across Scopes 1, 2 and 3, which affirm our long-term commitment to net zero by 2040, and we have introduced interim targets for 2028. Our targets were validated by the Science Based Targets initiative (SBTi) in January 2024 and they provide a path for significant reduction in our emissions by 2028 and beyond.
By 2028, we have set the following targets:
- Reduce absolute Scopes 1 and 2 GHG emissions by 33.6% (2023 base year)
- Reduce absolute Scope 3 GHG emissions by 20.0% (2023 base year)
By 2040, our target is to reach net zero GHG emissions across the value chain.
Business model implications
As the UK and Ireland’s number one bathroom products group and a leading supplier of bathroom and kitchen products in our geographical markets, our business model already integrates certain emissions-reduction activities and products with sustainable attributes, and we will be increasing our focus on these areas to align our business and our products with a net zero world.
In developing our near-term decarbonisation plan for Scope 1 and 2, we assumed no material changes in our business model, locations or asset footprint or value chain impacts. Our belief is that we can make the necessary emissions reduction to our operations within a business-as-usual environment, utilising typical replacement cycles or initiatives that do not incur material capital expenditure or operational disruption. Beyond our near-term target date of 2028, we are reliant on the development of new technologies to reduce operational emissions to zero, in particular in the production of ceramic tiles (where we manufacture tiles in South Africa). In order to meet our emissions reduction targets, we will need to transition to lower carbon intensive fuels for our kilns, such as biogas, hydrogen or electricity. Technologies utilising these fuels are under development or not currently commercially available and, in the meantime, we will focus on improving the efficiency of the firing process.
Our near-term targets for Scope 3 emissions are also not predicated on any major shift in strategy. We anticipate taking steps to move our product portfolio towards the incorporation of lower embedded carbon materials and to improved operating efficiency in use. This year, we have started to develop a Sustainable Products Framework that enables us to classify our products against their sustainability attributes. This methodology will allow us to monitor and shift our revenue exposure to sustainable products over time.
Whilst we will need to increase and improve our supply chain engagement, we already engage with many of our suppliers to determine the embodied carbon for certain raw materials and work together to “design out” carbon products and processes. We will continue to roll out this approach to an increased number of suppliers.
We are committed to identifying and actioning every available opportunity to achieve our targets. We created a high-level net zero plan that would take us to our near-term and long-term net zero 2040 target based on our full value chain carbon footprint for 2023. Our top-down Group targets were then translated into targets for each of our brands, incorporating the particular emissions exposures and drivers of the brands. Our brands have responded by assessing and collating bottom-up initiatives for Scopes 1, 2 and 3 emissions reduction. These initiatives are recorded centrally and provide a register of planned milestones by brand, which are tracked quarterly at the ESG Forum.
2024
2028
2040
Our plan – Scope 1 and 2 emissions
Scope 1
The majority of our Scope 1 emissions relate to natural gas used in the kilns of our tile manufacturing businesses in both UK and South Africa. In the near term we are focusing on operational improvements such as heat recovery systems and retrofitting energy efficient burners to kilns. In the UK, we have also recently consolidated to one kiln to fire our tiles, which results in less energy used in the production process. At the start of the financial year ending March 2025, we announced the sale of Johnson Tiles UK, which will lead to a significant reduction in the Group’s Scope 1 emissions in 2025 as Johnson Tiles UK currently accounts for around 24% of our Scope 1 emissions.
Additionally, we are planning to decarbonise our vehicle fleet by replacing traditional internal combustion engine vehicles with electric or hybrid vehicles. Several of our brands have already increased the number of electric vehicles in their fleet and installed electric vehicle chargers on their sites. Triton, Merlyn and Grant Westfield have each set targets to make their entire fleets electric.
In the longer term, we will monitor technology development around kiln technologies such as electric, biogas or hydrogen kilns for our Johnson Tiles South Africa manufacturing facility. The Group will continue to support and contribute towards similar initiatives to provide us with options on transiting our kilns away from natural gas in the longer term.
Scope 2
The most significant reduction in our Scope 2 emissions will come from switching to renewable electricity supply, either through on-site renewables (e.g. rooftop solar installation at our main South African production site, and possibly Tile Africa and House of Plumbing sites) or securing purchased renewable electricity supply. The renewable energy market in South Africa is less mature than the UK market and therefore there is less availability, so we expect the transition to be slower for our South African brands.
We also expect grid decarbonisation to play a significant role in meeting our Scope 2 targets, especially in the long term – although, again, we expect the UK grid to decarbonise faster than the South African grid. We will also investigate the use of Energy Attribution Certificates (e.g. RECs and REGOs) to reduce our market-based Scope 2 emissions, although these are not central to us reaching our near term targets.
Scope 1 and 2 planned reductions
Our plan – Scope 3
Purchased goods and services account for 21% of our total emissions footprint and represent the embedded carbon within the raw materials and purchased items we procure. In the near term, we are looking to design products that are more easily recyclable and have lower embedded carbon, whilst also engaging with our suppliers to provide materials with a lower carbon impact.
Given our products’ use-phase emissions exposure, the single biggest factor in our ability to hit our near-term Scope 3 target and net zero by 2040 target is the pace of decarbonisation of grids globally, especially in the UK, which is our main market. We cannot directly influence the pace of grid decarbonisation and rely on governments to implement appropriate policies to achieve this. That said, we are encouraged by the forecasts in the UK’s Future Energy Scenarios, which see effective decarbonisation of the UK electricity grid by 2035 in three of the four modelled outcomes.
Our other main focus of Scope 3 emissions reduction is product innovation and supplier collaboration. Through product innovation, and in collaboration with our suppliers, we can influence emissions not only in their use-phase, but also in embedded emissions in our purchased goods and end of life. By investigating alternative materials, such as recycled material or raw materials that have acceptable technical qualities with lower carbon emissions, reducing the weight or number of components in our products and increasing the overall use-phase efficiency of our products, we can reduce both the upstream and downstream impacts of our product range, including the associated packaging. We are also looking into use-phase optimisation of certain products, such as Triton’s electric showers, by designing and manufacturing showering products to reduce the carbon footprint during use.
Most of our products are shipped by sea or by road. We are reviewing how we package and ship our products to look for opportunities for reducing the overall emissions footprint associated with logistics. We have factored in conservative assumptions on the decarbonisation of global transportation, which will drive the decarbonisation of logistics, business travel and employee commuting.
Scope 3 planned reductions
