ESG Committee meetings held
Committee Composition
During the year, the Committee comprised:
Helen Jones
Jill Caseberry
Tom Singer (appointed 31 March 2021)
David Adams resigned 31 December 2020
Graham Stapleton (stepped down on 31 March 2021)
Karen Bellairs (stepped down on 31 March 2021)
Michelle Burton (stepped down on 31 March 2021)
Andy Randall (stepped down on 31 March 2021)
The Company's Chair, Keith Williams, whilst not a member of the Committee, attends the meetings upon the invitation of the Committee Chair.
There were three Committee meetings held during the year and after each one, I reported to the Board on the key issues that we covered. I held informal discussions between Committee members and business leaders throughout the year as the need arose.
We are committed to an ESG agenda which aims to exceed our stakeholders' expectations. Building on our strategy announced last year, we are now starting to make meaningful progress.
Chair's Letter
During the year, the Committee conducted a refresh of our ESG strategy recognising the need to fully integrate our ESG commitments into how we do business and aligning with our corporate strategy. We agreed upon the four key areas of priority – Electrification, Net Zero Commitment, Diversity & Inclusion, and Product, Packaging and Waste Management – and developed a roadmap for delivering against these priorities in the short-, medium-, and long-term.
A significant achievement this year has been the setting of science-based targets for the Group and I am delighted that we are able to share these in this report. Setting these targets shows our commitment to reducing our emissions and our determination to achieve our goal of net zero emissions by 2050.
Recognising the significance of ESG within our business, this year we have formalised ESG as an official Committee of the Board, with membership limited exclusively to NEDs.
The Board is committed to improving ethnic diversity at Board and senior management level and during the year we will begin the process of ensuring that the composition of the Board is compliant with the Parker Review into corporate governance.
Main Responsibilities of the Committee
- Oversight and continued development of our ESG strategy.
- Setting KPIs and targets and monitoring progress against them.
- Ensuring the Group continues to meet stakeholder expectations.
- Maintaining the highest possible standards of ethical trading in our supply chain.
Activities Undertaken
During the year, the Committee:
- Created a Steering Group comprising of key ESG stakeholders around the business, with the responsibility of monitoring and ultimately delivering the ESG strategy.
- Evaluated ESG strategies of peer group companies to help inform our thinking.
- Reviewed and agreed upon a set of science-based targets:
- Halfords will commit to achieve a 1.5ºC science-based target across Scopes 1 and 2 by 2030, reducing our emissions by 42% vs. a FY20 baseline.
- We also commit that 67% of our suppliers by emissions covering purchased goods and services and capital goods will have science-based targets by 2025.
- Approved a Group-wide goal of achieving net zero emissions by 2050.
- Agreed upon a set of key priorities for FY22 and future years:
- Electrification remains our North Star and we will focus our efforts in this space to meet all our stakeholder expectations.
- Net Zero Commitment
- Diversity & Inclusion
- Product, Packaging and Waste Management
- Reviewed and agreed upon a set of ESG targets and KPIs which were taken to the Remuneration Committee for approval.
- Signed off end-to-end packaging audit.
Further information on ESG around the Group, including environmental details on emissions, can be found in Our ESG Strategy of the Strategic Report.
Looking Ahead
In FY22, our focus will be on making strong progress against our key priorities and maintaining pace with our ESG roadmap. We will ensure we are prepared to report against the TCFD framework no later than the end of this financial year. We will continue to keep in close contact with our stakeholders and review the latest industry expectations to ensure that our ESG strategy remains up-to-date, relevant and fit-for-purpose.
Helen Jones
Chair of the ESG Committee
16 June 2021
Read more about our ESG Strategy.
FY21 Key Activities
- Agreement to set intermediate science-based targets – to achieve a 1.5ºC target across our own operations by 2030, reducing our emissions by 42% vs. a FY20 baseline, and that 67% of our suppliers by emissions will set science-based targets by 2025.
- Approved a Group-wide goal of achieving net zero emissions by 2050.
- Completed a refresh of our ESG strategy including agreement of our four areas of priority: Electrification, Net Zero Commitment, Diversity & Inclusion, and Product, Packaging and Waste Management.
- Development of a roadmap for delivering our ESG strategy over the next 12–18 months.
- Reviewed and agreed upon a set of ESG targets and KPIs which were taken to the Remuneration Committee for approval.
|
Areas of Focus in FY22
- Continuing to support our customers as they switch to electric, with increased investment in the training of colleagues to service electric modes of transport.
- Implementing measures to make progress against our science-based targets, such as switching to 100% renewable energy.
- Establish D&I baseline data and begin to implement a refreshed Group inclusion policy.
- Pilot the selling of reconditioned products, reducing the use of virgin materials.
- Engaging with suppliers to begin their net zero journey.
- Reporting against the TCFD framework.
|