Our Targets and Commitments

Driving improved sustainability performance across our businesses

The manufacturing businesses that we acquire often operate in the industries that are some of the most difficult to decarbonise. To effect meaningful change and improvement within our businesses during our ownership period, and to set the foundations that can enable our businesses to continue their trajectory even after our ownership period, we set a strong focus on sustainability improvement within each business that we acquire. Whilst under our ownership, we lead our businesses by example and enable fast and sustainable operational improvement supported by targeted investment. We provide them with the resources to monitor and report their sustainability performance, and enable them to benefit from the sharing of Group best practices to accelerate the pace of change within their organisations. Once our sustainability framework is embedded within our businesses, they are driven to achieve ambitious Group sustainability targets, in close alignment with the UN Sustainability Development Goals and the sustainability issues that are material to Melrose.

During 2020 and 2021 to date, we have engaged closely with our businesses to set our Group sustainability targets. Our targets aim to drive sustainable management of our businesses input resources, to improve the efficiency of their operations, and to minimise the impact of their outputs. Melrose seeks to achieve measurable and tangible improvements that deliver on our promise to improve our businesses’ longer-term financial and operational performance in a sustainable manner.

Each of our businesses are at a different stage of their respective strategic sustainability improvement journey, and at different points in their Melrose tenure. By the very nature of our ”Buy, Improve, Sell” strategy, our Group sustainability performance will fluctuate during our investment cycle as we acquire new businesses in need of improvement, and sell businesses that we have improved. These differences among our businesses, and the unique nature of our business model, have been assessed and considered in setting the parametres of Melrose Group sustainability targets as set out below.

Targets

 Fulfilled and being maintained   On track   Target not met   Monitoring

 

Environmental – respect and protect the environment 

Material Issue Melrose Action Melrose Group Performance Target Progress
Energy and consumption Reduce our global scope 1 and scope 2 emissions intensity
  • Reduce CO2e/£m revenue by 20% on average across the businesses by 2025
  • Reduce CO2e/£m revenue by 40% on average across the businesses by 2030
  • Achieve Net Zero GHG emissions by 2050
Responsible sourcing

Source our global electricity from renewable sources*

* Where renewable electricity is commercially and reasonably available in the relevant jurisdiction

  • Source 50% of our electricity from renewable sources by 2025
  • Source 75% of our electricity from renewable sources by 2030
Waste Divert our waste from landfill
  • Divert 95% of our waste from landfill by 2025
  • Divert 100% of our waste from landfill by 2030

Social – good health and wellbeing 

Material Issue Melrose Action Melrose Group Performance Target Progress
Health and safety Protect our employees from lost time accidents (LTAs) Achieve an LTA 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 - promote diversity and prioritise and nurture the wellbeing and skills development of employees and the communities that they are part of 

Material Issue Melrose Commitment Progress
Talent and workforce Ensure that all permanent employees receive regular (annual) formal performance reviews by 2022
Community / Talent and workforce Invest £10 million over five years through the Melrose Skills Fund
Inclusion & diversity Melrose commits to achieving and maintaining a Board and executive committee comprising at least 33% female membership by 2021
Inclusion & diversity

Maintain achievement of the Parker Review recommendations

Governance – purposefully engage with key stakeholders to better understand and deliver on their expectations

Material Issue Melrose Commitment Progress
Stakeholder engagement Engage where appropriate in regular, constructive dialogue with a variety of key stakeholders at each stage of our “Buy, Improve, Sell” cycle, and encourage and empower our businesses to do the same

We look forward to providing an update on the Group’s progress towards achieving our targets and fulfilling our commitments within our 2021 Annual Report.