Our sustainability strategy is underpinned by the regular collection of data that we use to generate our sustainability KPIs and for submission to sustainability benchmarking indices. 


Melrose Sustainability Data Sheet



Greenhouse gas emissions

Total Melrose Group GHG emissions for the period 1 January 2020 – 31 (tonnes CO2e(1)unless stated)


2020(2)


2019(3)


2018(4)

Change

(2020/2019)(5)

Scope 1: Direct GHG emissions

 

 

 

 

Combustion of fuel and operation of facilities(6)

184,874

223,847

23,261

-17%

Scope 2: Indirect GHG emissions

       

UK electricity

17,614

26,909

1,718

-35%

Overseas electricity

711,898

774,569

29,592

-8%

Total purchased electricity

729,512

801,478

31,310

-9%

Other purchased energy

2,045

3,165

1,801

-35%

Total Scope 2(7)

731,557

804,643

33,111

-9%

Total Scope 1 and Scope 2 emissions

916,431

1,028,490

56,372

-11%

 

 

 

 

 

Company’s chosen intensity measurement:

Emissions reported above normalised tonnes per £1,000 turnover (8)

0.105

0.092

0.030

+14%

Notes

(1) CO2e – carbon dioxide equivalent, this figure includes GHGs in addition to carbon dioxide, as set out in Table 2 below.​
(2) The 2020 emissions data does not include GKN Wheels & Structures as it was sold part way through that year. The emissions from this business fall below our materiality threshold.
(3) The 2019 emissions data does not include the Walterscheid Powertrain Group as it was sold part way through that year.
(4) The 2018 emissions data does not include the GKN business units as they were acquired part way through that year.
(5) The percentage change is relative to the base year of 2019, the first full reporting year that GKN Aerospace, GKN Automotive and GKN Powder Metallurgy were part of the Group.
(6) Our Scope 1 figures include emissions from fuel used on premises, transport emissions from owned or controlled vehicles, losses of refrigerant, and process and fugitive emission.
(7) Our Scope 2 figures include emissions from electricity and heat purchased by the Group’s businesses. Scope 2 emissions, and total GHG emissions, are calculated using the location-based method.
(8) The turnover figure used to calculate the intensity ratio does not include any share of revenues from entities in which the Group holds an interest of 50% or less.

Melrose Group GHG emissions by type (CO2e) for the period 1 January 2020 – 31 December 2020 (tonnes CO2e(1) unless stated)

UK

Global
(excl UK)

Total

Scope 1(1)

 

 

 

CO2

9,700

172,514

182,214

CH4

13

227

240

N2O

6

137

143

SF6

2,075

741

2,816

R134a

0

59

59

Total Scope 1 CO2e

11,794

173,678

185,472

Scope 2(2)

 

 

 

CO2

17,455

708,809

726,264

CH4

54

466

520

N2O

104

2,624

2,728

Total Scope 2 CO2e

17,613

711,899

729,512

Notes

(1) Our Scope 1 figures include emissions from fuel used on premises, transport emissions from owned or controlled vehicles, losses of refrigerant, and process and fugitive emission.
(2) Our Scope 2 figures include emissions from electricity and heat purchased by the Group’s businesses. Scope 2 emissions, and total GHG emissions, are calculated using the location-based method.

Melrose Group energy consumption by type for the period 1 January 2020 – 31 December 2020 (MWh unless stated)

  2020 2019  
 

UK

Global
(excl UK)

Total

UK

Global
(excl UK)

Total

Change
(Total)

Energy type    

Energy (MWh)

 

Natural gas

52,132

809,336

861,468

121,350

962,039

1,083,389

-20%

LPG

317

37,716

38,033

320

50,221

50,541

-25%

Gas oil

0

5,669

5,669

0

8,533

8,533

-34%

Fuel oil

0

9,189

9,189

0

21,538

21,538

-57%

Diesel

261

6,809

7,070

904

12,024

12,928

-45%

Petrol (gasoline)

13

667

680

39

2,177

2,216

-69%

Steam

0

21,713

21,713

0

30,253

30,253

-28%

Wood pellets

0

18,819

18,819

0

19,383

19,383

-3%

Total non-renewable fuels consumption

52,723

909,918

962,641

122,613

1,106,168

1,228,781

-22%

Total renewable electricity consumption

0

8,052

8,052

274

6,021

6,295

28%

Total non-renewable electricity consumption

75,549

1,864,732

1,940,281

108,459

2,055,094

2,163,553

-10%

Total electricity consumption

75,549

1,872,784

1,948,333

108,733

2,061,115

2,169,848

-10%

Total operational energy consumption

128,272

2,782,702

2,910,974

231,346

3,167,283

3,398,629

-14%

 

 

 

 

 

 

 

 

Company’s chosen intensity measurement:

MWh per £1,000 turnover(1)

 

0.015

 

0.318

 

0.332

 

0.021

 

0.283

 

0.304

 

9%

Notes

(1) The turnover figure used does not include any share of revenues from entities in which the Group holds an interest of 50% or less.

Water consumption

Melrose Group water consumption data for the period 1 January 2020 –
31 December 2020(1)

2020

2019

Change

Freshwater water consumption in operation (m3)

3,880,393

4,165,220

-7%

Company’s chosen intensity ratio:

m3 per £1,000 turnover(2)

 

0.443

 

0.380

 

17%

Notes
(1) Water consumption data was collected from 147 sites (93%) across the Group’s businesses, up from 129 sites (80%) in 2019. Although a small number of sites did not record their water consumption, to give an indication as to size, these sites accounted for less than 3% of the Group’s total GHG emissions in 2020, and so these omissions are not material.
(2) The turnover figure used does not include any share of revenues from entities in which the Group holds an interest of 50% or less

Waste generation

Melrose Group waste generation data for the period 1 January 2020 – 31 December 2020(1)

2020

2019

Change

Weight of total non-hazardous waste (tonnes)

139,388

192,869

-28%

Weight of total hazardous waste (tonnes)

11,087

13,983

-21%

Total waste generated (tonnes)

150,475

206,852

-27%

Breakdown:

 

 

 

- Total recycled (tonnes)

121,912

176,463

-31%

- Total incineration (tonnes)

9,103

-(2)

-

- Total landfill (tonnes)

15,601

8,248

+89%(3)

- Hazardous waste disposed through legally approved treatment routes (tonnes)(4)

 

3,859

 

-(2)

 

-

Notes

(1) Waste generation data was collected from 136 sites (86%) across the Group in 2020, up from 126 (78%) sites in 2019. Although a small number of sites did not record their waste generation, to give an indication as to size, these sites accounted for less than 3% of the Group’s total GHG emissions in 2020, and so these omissions are not material.
(2) “Total incineration” and “Hazardous waste disposed through legally approved treatment routes” were reported for the first time in these categories in 2020 and therefore no prior year comparison is Hazardous waste was reported more generally in 2019, but for 2020 we have the data to provide a detailed breakdown as between the different categories of total waste generated, and feel this provides better disclosure.
(3) Total landfill for 2020 accounted for 10% of total waste generated, and the year-on-year increase was largely driven by a change in the sites included in the data coverage for 2020 compared to Some of the sites that reported for the first time in 2020 mainly send their waste to landfill, as well as some GKN Automotive sites showing an increase in landfill in 2020. We will look to achieve reductions in this area during 2021.
(4) This figure was calculated on the basis of the guidance published by the EU (see source: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:02000D0532-20150601), which includes waste from physical and chemical processing of metals that are hazardous to humans and wildlife, oil spills and waste materials containing oil, wastes containing mercury and heavy metals, waste paint, varnish and coatings containing organic solvents and other hazardous substances.

Safety Performance

Business

Target

Areas of focus

GKN

Aerospace

•  Reduce lost time accident (LTA) rate by 10% per year.

•  Reduce total injury rate by 10% per year.

In 2021, four new health and safety awareness topics (one per quarter) will be added to the thinkSAFE! and thinkGREEN! online training portals, with a goal of achieving an attendance level 5 score, equivalent to over 91% completion by employees. The division’s long-term goal is zero injuries.

GKN

Automotive

•  Reduce LTA rate by 20% per year.

GKN Automotive is focusing on reducing behavioural- related incidents and ensuring the right safety competencies are in place at all levels.

GKN Powder Metallurgy

•  Reduce accident frequency rate by 10% per year.

•  Reduce accident severity rate by 10% per year.

•  Reduce serious injury rate by 10% per year.

GKN Powder Metallurgy has implemented a programme of internal audits, corrective action, and root cause elimination. There is a focus on prevention, rather than detection, which is delivered through a culture of performance monitoring.

AQH

•  Reduce total recordable accident rate by 26% by 2023.

At site level, action-based goals are in place to drive hazard identification and employee engagement.

In 2021, the business will implement a Safety Management System Evaluation that will provide a numerical score that correlates with a maturity rating. This data will enable AQH to set further quantitative targets in the future.

Ergotron

•  Medium-term (2-5 years) goal to achieve zero injuries and occupational illnesses.

Ergotron has set ambitious goals across the short and medium term. The business is closely tracking near misses in order to proactively reduce safety incidents.

Accident Frequency

Major accident frequency rate

Records the average number of lost time accidents that have resulted in more than three days off work (defined as ‘major’ accidents), per 200,000 hours worked.

2020 2019 2018 2017
0.19 0.50 0.21 0.38

Accident frequency rate

Records the average number of lost time accidents, both major and minor, per 200,000 hours worked.

2020 2019 2018 2017
0.30 0.43 0.47 0.70

Accident severity rate

​Records the average number of days an employee takes off work following an accident at work.

2020 2019 2018 2017
20.39 18.97 22.08 14.15

Reward and recognition

 

2020

2019

2018

2017

Open positions filled by internal candidates

25%

31%

15%

20%

Overall voluntary attrition

10%

10%

25%

21%

Diversity

Melrose Board Gender Diversity

At 30 June 2021

At 31 December 2020

 

Male

Female Male Female

Board

7 (58%) 5 (42%) 7 (70%) 3 (30%)

Melrose Board Ethnic Diversity

As at 30 June 2021

White
(%)

BAME(1)
(%)

Board

92%

8%

Notes

(1) Black, Asian and Minority Ethnic

Total Group employee gender diversity at 31 December 2020


Male


Female


Total

Male
(%)

Female
(%)

Total Group employees

41,405

10,380

51,785

80%

20%

Melrose Executive Committee Gender Diversity

Male
(%)

Female
(%)

Members

65%

35%

Talent and careers management

Training and development

2020

2019

2018

2017 2016

Average training time per employee (hours)(1)

19

8

27

70%

30%

Average training spend per employee (£)(2)

149

19

168

89%

11%

Total number of training hours(3)

168

27

195

86%

14%

Total annual spend on workforce training (£)(4)

8,591,293

12,182,473

1,200,461

1,377,247

300,025

Notes

(1) Data was collected from 38% (by headcount) of the Group in 2017, 21% (by headcount) in 2018, 25% (by headcount) in 2019 and 39% (by headcount) in Data was not available in 2016.
(2) Data has been collected from 99% (estimate of spend as only AQH Zephyr Pacific location and Melrose head office not included) of the Group.
(3) Data was collected from 38% (by headcount) of the Group in 2017, 21% (by headcount) in 2018, 25% (by headcount) in 2019 and 39% (by headcount) in Data was not available in 2016.
(4) Data has been collected from 99% (estimate of spend as only AQH Zephyr Pacific location and Melrose head office not included) of the Group.

Our sustainability strategy is underpinned by the regular collection of data that we use to generate our sustainability KPIs and for submission to sustainability benchmarking indices. 

Code of Ethics

The Code of Ethics includes policies covering best practice with respect to anti-bribery and corruption, anti-money laundering, anti-facilitation of tax evasion, competition, conflict minerals, trade compliance, data privacy, whistleblowing, treasury and financial controls, anti-slavery and human trafficking, document retention, and joint ventures.

A copy of Melrose’s Code of Ethics can be found here.

All business must be conducted in an open, honest and ethical manner as required by the Anti-Bribery and Corruption Policy. Bribes are against the law, no matter what “local custom” may be. Any breach of this policy may lead to disciplinary action being taken by the Company up to and including termination of employment.

A copy of Melrose’s Anti-Bribery and Corruption Policy is available here.

No Melrose business may engage in money laundering. Although the Group does not undertake regulated activities for the purposes of anti-money laundering legislation, we are committed to best practice in this area as set out in the Anti-Money Laundering Policy.

One of the fundamental principles of the Group is to conduct all of its business in an open, honest and ethical manner. We take a zero tolerance approach to acts which enable tax evasion to take place and such principle is embedded in Melrose’s Preventing the Facilitation of Tax Evasion Policy.

Employees are responsible for acquiring a sufficient understanding of applicable competition laws and refrain from engaging in practices that violate such laws so that we compete fairly, as set out in Melrose’s Competition Policy.

We act ethically and with integrity and expect our suppliers to do the same. Where applicable, we have strict procedures in place to seek to identify whether 3TG minerals are sourced responsibly and from conflict-free regions of the world

A copy of Melrose’s Conflict Minerals Policy can be found here.

In conducting business across borders, employees must be aware of, and follow, all applicable laws and comply with the Group’s Trade Compliance Policy. Compliance failures can result in fines, criminal penalties, adverse publicity and suspension or revocation of the Group’s import or export privileges.

Employees must always safeguard personal information and only use it for valid business purposes. The Data Protection Policy is designed to assist in ensuring we manage the data protection risks arising out of our activities.

Employees are encouraged to raise promptly any actual or suspected breach of Melrose policies and any other matter of concern. Further details are contained in the Whistleblowing Policy.

A copy of Melrose’s Whistleblowing Policy is available here.

Employees must ensure that all records and documents are adequately protected and maintained in accordance with Melrose's Document Retention Policy.

Melrose has a zero-tolerance approach to modern slavery and we are committed to implementing and enforcing effective systems and controls to ensure modern slavery is not taking place anywhere in our own business or in any of our supply chains. Further details are contained in the Anti-slavery and Human Trafficking Policy.

The Joint Venture Policy must be complied with both before entering into a JV arrangement and during the course of a JV partnership.

At a Board level, the Board together with the Nomination Committee places great emphasis on ensuring that its membership and pipeline for succession planning reflects diversity.

Further details are contained in our diversity policy.