Our targets and commitments

Driving improved sustainability performance

Our Group targets and commitments support our sustainability principles and reflect our dynamic material sustainability topics. Their alignment with the UN SDGs links our sustainability ambitions with those of society, and our value creation strategy - with our stakeholders’ expectations.

The strategic guidance, investment and resources ensure the prioritisation and ultimate delivery of climate-focused projects in line with operational, market and sector environments. Aimed at driving long-term strategy and performance, our targets inform sustainable management of input resources, leading to improved efficiency, strengthened capability and resources, which in turn, unlock sustainable growth.

Targets

 Fulfilled and being maintained   On track   Target not met    Monitoring    In progress​

 

Environmental – Respect and protect the environment
Material Topic	Melrose Action	Melrose Group Performance Target	Progress
Energy and consumption	Reduce our global scope 1 and scope 2 emissions intensity	Reduce CO2 e/£m revenue by 20% on average across the businesses by 2025 and 40% by 2030(1) Achieve net zero greenhouse gas emissions by 2050
Waste	Divert our waste from landfill	Divert 95% of our solid non-hazardous waste from landfill by 2025 and 100% by 2030(2)
Water	Reduce our water withdrawal intensity	Reduce water withdrawal intensity by 25% by 2030(3) Implement Group Water Stewardship Programme to improve water management across our businesses
Responsible sourcing	Source our global electricity from renewable source	Source 50% of our electricity from renewable sources by 2025 and 75% by 2030(4)
Environmental – Continue to invest in and support our businesses as they develop products and services aligned with a net zero future
Material Topic	Melrose Action	Melrose Group Performance Target	Progress
Innovation and R&D	Increase expenditure on R&D relating to climate-related solutions that contribute to the decarbonisation of the sectors in which our businesses operate	Achieve 50% of total R&D expenditure on climaterelated R&D per year to contribute to the decarbonisation of the sectors in which our businesses operate by 2025, 75% by 2030 and 100% by 2040
Sustainable products	Develop new products that contribute to the decarbonisation of the sectors in which our businesses operate	Achieve 50% of new products which contribute to the decarbonisation of the sectors in which our businesses operate by 2025, 75% by 2030 and 100% by 2040
Social – Prioritise health & safety, promote diversity and nurture the wellbeing and skills development of employees, and support the communities that they are part of
Material Topic	Melrose Action	Melrose Group Performance Target	Progress
Health and safety	Protect our employees from lost time accidents (LTAs)	Achieve and maintain an average LTA frequency rate below 0.1

Commitments

Our focus on investing in our businesses to create a more sustainable future does not stop at setting sustainability performance targets. To support the achievement of our targets over the longer-term, and to capture the wider contributions and investments that Melrose makes towards promoting sustainable outcomes in a more holistic manner, Melrose is also focused on fulfilling the following commitments: 

Social – Prioritise health & safety, promote diversity and nurture the wellbeing and skills development of employees, and support the communities that they are part of
Material Topic	Melrose Commitment	Progress
Talent and workforce	Ensure that all permanent employees receive regular (annual) formal performance reviews where permitted by local laws and employee representative bodies
Community	Invest £10 million over five years through the Melrose Skills Fund
Diversity and Inclusion	Maintain a Board and Executive Committee comprising at least 33% female membership
Diversity and Inclusion	Maintain achievement of the Parker Review recommendations
Governance – Exercise robust governance, risk management and compliance
Material Topic	Melrose Commitment	Progress
Ethical Conduct and Compliance / Business Model Resilience	All employees, suppliers and contractors must comply with our Code of Ethics, conducting business with integrity and in a responsible, ethical and sustainable manner

We look forward to providing an update on the Group’s progress towards achieving our targets and fulfilling our commitments within our 2022 Sustainability Report.

^{(1) Target baselined on 2021 performance. Baseline was set in conjunction with the timeframe of the Group’s target setting process.
(2) Target baselined on FY 2021 and with consideration of HY 2022 performance. Baseline was set in conjunction with the timeframe of the Group’s target setting process.
(3) Where renewable electricity is commercially and reasonably available in the relevant jurisdiction.}

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