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 2021, we have engaged closely with our businesses to set our Group sustainability targets, and have added a Group water target in 2022. 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 
In progress
    Environmental – Respect and protect the environment |
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| Material Topic | Melrose Action | Melrose Group Performance Target | Progress |
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Energy and consumption |
Reduce our global scope 1 and scope 2 emissions intensity |
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| Waste | Divert our waste from landfill |
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| Water |
Reduce our water withdrawal intensity |
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| Responsible sourcing | Source our global electricity from renewable source |
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Environmental – Continue to invest in and support our businesses as they develop products and services aligned with a net zero future |
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| 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 |
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| Sustainable products |
Develop new products that contribute to the decarbonisation of the sectors in which our businesses operate |
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Social – Promote diversity, prioritise and nurture the wellbeing and skills development of employees, and support the communities that we are part of |
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| 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 – Promote diversity and prioritise and nurture the wellbeing and skills development of employees and the communities that they are part of |
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| 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 |
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Governance – Exercise robust governance, risk management and compliance |
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| 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 Annual Report.
(1) Target baselined on 2021 performance. Baseline was set in conjunction with the timeframe of the Group’s target setting process.
(2) Excluding hazardous waste.
(3) 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.
(4) Where renewable electricity is commercially and reasonably available in the relevant jurisdiction.