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


Energy consumption and carbon emissions

Total Melrose Group energy consumption and GHG emissions for the period 1 January 2022 to 31 December 2022
  2022 2021(2)  
  

UK

Global
(excl UK)

Total

UK

Global
(excl UK)

Total

Change
(2022/21)

Energy (MWh)(3)

              

Total operational energy consumption

 103,902 2,523,360 2,627,262

123,654

2,662,113

2,785,767

-6%

Company’s chosen intensity measurement:
Energy consumption reported above normalised MWh per £1,000 turnover(1)

 0.014 0.335 0.349

0.018

0.387

0.405

-14%

Emissions(3) (CO2e)(4)

              

Scope 1: Direct GHG emissions(5)

 7,716 151,656 159,372

9,394

160,476

169,870

-6%

Scope 2: Indirect GHG emissions(6)

 11,934 603,728 615,662

15,313

590,382

605,695

2%

 – Total purchased electricity

 11,934 602,528 614,462

15,313

587,452

602,765​

2%

– Other purchased energy

 - 1,200 1,200

-

2,930

2,930

-59%

Total Scope 1 and Scope 2 emissions

 19,650 755,384 775,034

24,707

750,858

775,565

0%

Company’s chosen intensity measurement:
Emissions reported above normalised tonnes CO2e per £1,000 turnover(1)

 0.003 0.100 0.103 0.004 0.109 0.113 -9%

Scope 3 emissions:

              

Category 3: Fuel- and energy-related activities (T&D)(7)

 1,194 40,178 41,372 1,355 44,054 45,409 -9%

Category 3: Fuel- and energy-related activities (WTT)(8)

 4,172 25,481 29,653 1,611 26,467 28,078

6%

Category 6: Business travel and business travel (WTT)(9)

 - - 14,953

-

-

6,873

118%

Total Scope 3 emissions

 5,366 65,659 85,978

2,966

70,521

80,360

7%

Notes

(1) The data has been standardised from the source units in which it was initially collected. The turnover figures used to calculate the intensity ratio include continuing businesses only and do not
include any share of revenues from entities in which the Group holds an interest of 50% or less.
(2) 2021 data has been restated.
(3) Data include continuing businesses only.
(4) CO2e – carbon dioxide equivalent, this figure includes GHGs in addition to carbon dioxide.
(5) 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.
(6) 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.
(7) Electricity transmission and distribution losses.
(8) Emissions from fuel-related well-to-tank.
(9) Including rail, vehicle and air travel information, collected from 100% (by revenue) of the Group in 2022. For 2021, this category included only business travel from 63% (by revenue) of the Group..

 

Melrose Group GHG emissions by type (CO2e) for the period 1 January 2022 – 31 December 2022 (tonnes CO2e(1) unless stated)
  2022 2021(11)  
  

UK

Global
(excl UK)

Total

UK

Global
(excl UK)

Total

Change
(2022/21)

Scope 1(12)

              

CO2

 7,700 147,934 155,634

9,375

159,958

169,333

-8%

CH4

 11 195 206

13

211

224

-8%

N2O

 5 143 148 6 150 156 -5%

R134a(13)

 0 3,384 3,384

0

157

157

-

Total Scope 1 CO2e

 7,716 151,656 159,372

9,394

160,476

169,870

-6%

Scope 2(14)

              

CO2

 11,800 601,676 613,476

15,156

588,418

603,574

2%

CH4

 49 414 463

58

296

354

31%

N2O

 85 1,638 1,723 99 1,668 1,767 -2%

Total Scope 2 CO2e

 11,934 603,728 615,662 15,313 590,382 605,695 2%

Notes

(10) CO2e – carbon dioxide equivalent, this figure includes GHGs in addition to carbon dioxide.
(11) 2021 data has been restated.
(12) 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.
(13) Increase in R134a emissions year-on-year data is due to improved monitoring processes allowing to collect emissions data more accurately.
(14) 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 2022 – 31 December 2022 (“MWh” unless stated)
  2022 2021(15)  
Energy type

UK

Global
(excl UK)

Total

UK

Global
(excl UK)

Total

Change
(2022/21)

Natural gas

 41,897 724,786 766,683 50,903 787,327 838,230 -9%

LPG

 62 36,192 36,254 76 37,805 37,881 -4%

Gas oil

 0 4,939 4,939 0 4,894 4,894 1%

Fuel oil

 0 6,344 6,344 0 12,697 12,697 -50%

Diesel

 191 12,553 12,744 202 12,166 12,368 3%

Petrol (gasoline)(16)

 38 3,847 3,885 28 1,594 1,622 -

Steam

 0 7,032 7,032 0 17,157 17,157 -59%

Propane(16)

 0 6,240 6,240 0 0 0 -

Total non-renewable fuels consumption

 42,188 801,933 844,121 51,209 873,640 924,849 -9%

Total renewable electricity consumption(17)

 3 2,335 2,338 327 25,743 26,070 -

Total non-renewable electricity consumption

 61,711 1,719,092 1,780,803 72,118 1,762,731 1,834,849 -3%

Total electricity consumption

 61,714  1,721,427 1,783,141  72,445  1,788,474  1,860,919  -4% 

Total operational energy consumption

 103,902  2,523,360  2,627,262  123,654  2,662,114  2,785,768  -6% 

Company’s chosen intensity measurement:
MWh per £1,000 turnover(18)

 0.014 0.335 0.349 0.018 0.387 0.405 -14%

Notes

(15) 2021 data has been restated.
(16) Increase in petrol (gasoline) and propane year-on-year data is due to improved monitoring processes allowing to collect non-renewable energy consumption data more accurately.
(17) Decrease in renewable electricity consumption year-on-year data is due to improved monitoring processes allowing to collect renewable electricity consumption data more accurately.
(18) 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. For 2022, the turnover figure
includes continuing businesses only.

Waste management

Melrose Group waste generation data for the period 1 January 2022 to 31 December 2022
Tonnes

2022

2021(2)

Change (2022/21)

Total waste

259,854

n/r(3)

-

thereof liquid waste

61,136

n/r

-

Total solid waste

198,718

162,336

22%

thereof non-hazardous waste

172,449

151,900

14%

thereof non-hazardous waste to landfill

6,230

n/r

-

thereof non-hazardous waste for recycling/reused

166,219

n/r

-

thereof hazardous waste

11,333

10,436

9%

thereof hazardous waste to landfill

1,599

n/r

-

thereof hazardous waste for recycling/treatment

9,734

5,394

80%

thereof incinerated waste

14,936

5,850

155%

Waste to landfill (hazardous and non-hazardous)

7,829

9,175

-15%

Solid waste diverted from landfill

190,889

153,161

25%

Solid non-hazardous waste diverted from landfill

166,219

n/r

-

Solid non-hazardous waste diverted from landfill rate

96.39%

n/r

-

Company’s chosen intensity measurement(4):
Tonnes of solid waste per £1,000 turnover

0.0263

0.0236

 11%
Waste management was also a focus for community engagement across the businesses in 2022. For example, GKN Aerospace undertook a number of activities relating to environmental issues: from planting trees at its sites in Solihull, UK and Jingjiang, China to supplying a school in Bangalore, India with plantable seed pens, reducing 900 plastic pens to landfill, and collecting plastic packaging to be upcycled into useful products. GKN Automotive’s employees ran litter-picking initiatives in Japan, and in Thailand, they organised
the collection and recycling of used water bottles for reuse in the manufacture of school bags in the local area.

>90%

 solid non-hazardous waste diverted from landfill in 2022 against the 95% target by 2025

Notes
(1) Excluding hazardous waste.
(2) In 2021, total solid waste is made up of non-hazardous and hazardous waste.
(3) Not reported.
(4) 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. The turnover
figure includes continuing businesses only.

Major accident frequency rate

Major Accident Frequency Rate records the average number of LTAs that have resulted in more than three days off work (defined as ‘major’ accidents), per 200,000 hours worked.

2022 2021 2020 2019 2018
0.06 0.04 0.19 0.27 0.19

Accident frequency rate

LTA Frequency Rate records the average number of LTAs, both major and minor, per 200,000 hours worked.

2022 2021 2020 2019 2018
0.07 0.06 0.30 0.43 0.28

Accident severity rate

​Accident Severity Rate records the average number of days
an employee takes off work following an accident at work.

2022 2021 2020 2019 2018
16.04 30.17 20.39 19.15 26.59

Reward and recognition

 

2022

2021

2020

2019

2018

Open positions filled by internal candidates

12%

20%

25%

31%

15%

Overall voluntary attrition

12%

9%

10%

10%

25%

Notes

(1) Data was collected from 100% (by headcount) of the Group in 2021 and 2022. 

Diversity

Melrose Board Gender Diversity at 31 December 2021

 At 31 December 2022

At 31 December 2021

At 31 December 2020

 

Male

Female

Male

 Female Male Female

Board

6 (60%)

4 (40%)

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

Permanent employee gender diversity at 31 December 2022


Male


Female


Total

Male
(%)

Female
(%)

Total Group employees

30,815

7,876

38,691

80%

20%

Talent and careers management

Training and development

2022

2021

2020

Average training time per employee (hours)(1)

17

23

 13

Average training spend per employee (£)(2)

183

209

 166

Total number of training hours(3)

729,474

929,878

 338,406

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

7,992,943

8,384,837

8,591,293

Notes

1) Data was collected from 100% (by headcount) of the Group in 2022 and 2021, and from 39% in 2020.
(2) Data was collected from 98% (by headcount) of the Group.
(3) Data was collected from 100% (by headcount) of the Group in 2022 and 2021, and from 39% in 2020.
Melrose Industries PLC
(4) Data was collected from 98% (by headcount) of the Group.

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, joint ventures, diversity and inclusion, environmental and human rights.

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

Anti-bribery and corruption

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.

Anti-money laundering

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.

Anti-facilitation of tax evasion

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.

Competition

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.

Conflict minerals

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.

Trade compliance

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.

Data privacy

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.

Whistleblowing

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.

Document retention

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

Anti-slavery and human trafficking

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.

Joint ventures

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

Diversity and inclusion

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.  Melrose also understands the importance of diversity and inclusivity in its workforce to its long-term success.

Further details are contained in our Board of Directors Diversity Policy and our Diversity, Equity and Inclusion Policy.

Environmental

We are committed to improving our businesses for the good of shareholders, the environment and other stakeholders. We are committed to minimising the potential negative impact that our businesses may have on the environment over the longer term.

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

Human rights

We are committed to upholding and protecting human rights according to international standards.

A copy of Melrose’s Human Rights Policy is available here.

Supply Chain

Melrose is committed to improving its businesses’ operations for the good of shareholders, the environment and other stakeholders. We want our businesses and their suppliers to aspire to be sustainable in their supply chains, with environmental and social responsibility, focus on innovation and quality excellence in their delivery.

A copy of Melrose’s Supply Chain Policy is available here.

Biodiversity

In line with our commitment towards protecting biodiversity and minimising the potential negative impact on the natural environment over the longer term, we recognise our role in preserving the health and stability of natural capital as it provides resilience to natural shocks and supports fundamental processes such as the carbon and water cycles as well as soil formation.

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

Water

With water often being a fundamental part of Melrose’s businesses’ operations, their future developments, and the communities in which they operate, we recognise our role and responsibility relating to water and drive our businesses to make educated and sustainable decisions to understand and address key environmental issues, aiming to help preserve this critical natural resource.

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