In setting these net zero targets, we committed to reducing our emissions as far as possible, and offsetting the residual emissions at the target years. During 2023, our near-term targets, which support our net zero targets, were validated by the SBTi (Science Based Targets initiative). This provides independent assurance that our projected emissions reduction trajectory is aligned to the ambition of limiting global warming to  1.5°C. The trajectory towards net zero is unlikely to be linear, and in some years, we may see our emissions increase as the volume and mix of projects changes.

Net Zero Route Map

In support of our science-based and net zero carbon targets, we have developed and published our first net zero route map. The route map identifies 16 activities where action is required in order to achieve our emission reduction targets. These include: the use of diesel, company vehicles, site compounds, permanent offices, business travel, design, construction materials, emissions measurement, internal carbon charging and offsetting. For each of the activities, the route map outlines the timeline of the actions we have already taken or are underway, the actions we still need to take, and our ultimate ambition.

For the activities that contribute towards our scope 1 and 2 net zero by 2030 target, the actions are more specific because we have a greater degree of control over these activities, we have better data, and the target year is closer. For the activities that contribute towards our Scope 3 net zero by 2045 target, the actions through to the target year are less well-defined, and will continue to evolve as we develop more accurate emissions measurement techniques and engage with our clients and supply chain partners on low carbon materials and construction methods.

The route map is intended to be a guide for our teams across the business to understand the actions they need to be taking and when. It also is a means of communicating to our clients, supply chain and other stakeholders the journey we collectively are on and the role we need them to play.

Achieving net zero through our Carbon Reduction Plan 

Policies and management

Our Environmental Policy sets out our commitment to integrating the assessment, management and control of environmental issues into the management of our business. This is complemented by our Energy Policy, which recognises the impact of energy use on climate change and commits us to effectively and efficiently managing our energy use. Our Biodiversity Policy obligates us to protect and, where appropriate enhance biodiversity during our construction activities. Our Responsible Sourcing Policy requires us to consider our preferred suppliers’ environmental impacts, among other issues.

We identify, manage and mitigate our environmental impacts from project to business level through our ISO 14001 certified management system, supported by a network of Health, Safety and Sustainability (HS&S) advisors.

Our policies and processes are contained within our BMS (Business Management System), a mandatory platform, which defines our approach to all key operations and sets out the standards we must adhere to. Use of the BMS ensures consistency, governance and control and effective risk management by mitigating issues at source.

We make our people aware of our environmental standards and policies that are integrated into our BMS through extensive training, our intranet and by promoting our Code of Conduct, ‘Doing the right thing’, to all our employees.

Ensuring compliance

Compliance with our environmental policies is assessed through HS&S advisors who are aligned to each business unit to provide support and advice. They visit sites regularly to ensure compliance with policies and procedures and produce a Safety, Security and Environmental Report, which is communicated to appropriate levels in the business through a database. Any non-compliance identified requires a corrective action plan, including the date by which it will be completed.

We also monitor performance using key performance indicators (for example covering waste and timber), which are regularly reviewed and variations investigated. Any incidents or visits (for example by the Environment Agency) are logged in databases and reported to divisional Boards each month.

In our Annual Report (published in October), we make disclosures in line with the recommendations of the Task force for Climate-related Financial Disclosures (TCFD), including outlining the key risks and opportunities that climate change poses to our business.

1 Carbon dioxide equivalent emissions and waste intensity are reported by Calendar Year (CY), therefore the emissions reported for FY24 relate to the calendar year 2023. Since 2014, our reported emissions have been externally verified to the ISO 14064-3 assurance standard.

2 Emissions relating to the Rock & Alluvium business, which was sold in November 2023, have been excluded from CY23 emissions. CY22 and CY21 emissions have been restated to exclude emissions from Rock & Alluvium.

Scope 1 and 2 carbon emissions

Our Scope 1 emissions predominantly relate to fuel use in company cars and vans, and on-site plant and equipment. Our Scope 2 emissions relate to consumption of electricity across our sites and permanent offices. In 2023, our scope 1 and 2 emissions demonstrated a continued transition from fossil fuels to electricity. Emissions relating to the use of diesel on our sites were down 9.1%, and emissions relating to company cars and vans were down 6.9%. This was offset by an increase in emissions relating to electricity consumption which is driven by a number of factors, including:

·       Company car business mileage claims transitioning from diesel/petrol cars to Electric Vehicles (EVs).

·       The increased number and usage of EV chargers at our sites and offices, some of which relates to personal use in addition to business use.

·       More people in the office more often, resulting in greater use of electricity.

Because electricity represents an increasing proportion of our scope 1 and 2 emissions, and we purchase 86% of our electricity on renewable tariffs (2022: 84%), we are now using market-based Scope 2 emissions within our headline scope 1 and 2 emissions KPI. This also aligns with our science-based target which is based on market-based Scope 2 emissions. The market basis uses emissions factors that reflect our actual electricity supply contracts and therefore allows us to demonstrate the impact of purchasing our electricity on renewable tariffs. The location basis uses the average generation mix for the UK and as such, is susceptible to changes that are outside of our control. On a market basis, our total scope 1 and 2 emissions have reduced by 2.5% year on year, but have increased by 0.4% on a location basis.

We have now reduced our reported scope 1 and 2 emissions by 66% since 2012, and by 71% on a like-for-like basis, adjusting for acquisitions, disposals and changes to methodology.

Scope 3 – verified emissions

We include certain categories of Scope 3 emissions within the boundary of the external verification where we have sufficiently reliable source data, such as business travel expense claims, and information regarding employee commuting to calculate emissions using a distance-based method.

Our verified Scope 3 emissions reduced by 16.6% from 8,545 tCO2e in 2022 to 7,128 tonnes in 2023. The biggest contributor to this reduction was a 34% fall in emissions relating to employee commuting. These emissions are estimated using responses from an employee commuting survey and the reduction is driven by more accurate information as a result of a higher survey response rate and improved data quality.

Waste intensity

Our waste intensity decreased from 21.8 tonnes per £100,000 of revenue in calendar year 2022 to 17.7 tonnes per £100,000 of revenue in calendar year 2023. Waste continues to be an area of focus, with increased use of Modern Methods of Construction, especially off-site manufacture, which can reduce the volumes of waste produced. Our focus on Right First Time also reduces waste through increased accuracy of materials required. We also manage our waste streams to maximise recycling and minimise waste to landfill, with 95.3% of our waste diverted from landfill (2023: 94.5%).

Water management

The effective management of water resources is of growing importance both in terms of managing our operational risk and protecting the natural environment. More regular intense rainfall events increase the risk of run-off from our sites, while periods of high temperatures and drought conditions can put restrictions on activities that require water usage, such as dust suppression and use of welfare facilities. Our project environment plans already include a water management section which addresses management of consents for water abstraction and discharge, and water course pollution control. However, we also recognise the importance of responsible use of water resources, including measures to reduce water consumption. Therefore, we have started recording water consumption data as part of our environmental reporting and will use this to establish baseline performance and to inform the development of water reduction targets.

Carbon Disclosure Project (CDP)

We continue to participate in the CDP, a global disclosure system for organisations to manage their environmental impacts. In 2023, we achieved an improved score of B ‘Management level’, (2022: C ‘Awareness level’), recognising the progress we are making in embedding climate action into our governance, strategy and operations.

Carbon Disclosure Project (CDP)

CDP (formerly Carbon Disclosure Project) is the global ‘gold standard’ for corporate environmental reporting. In 2022, we participated in the CDP Climate Change reporting process for the first time as a standalone construction group, achieving a score of C - Awareness Level. Making public disclosures through CDP provides transparent reporting of our carbon reduction targets, initiatives and performance, and also how we are managing the risks and opportunities presented by climate change. This score provides a baseline against which we can monitor the progress we are making in managing climate-related issues.

Carbon and energy performance, initiatives and SECR reporting

The data included in the table below covers the reporting requirements detailed in the SECR regulations. As we report our carbon and energy data in calendar years, the following section represents our carbon and energy performance for Galliford Try for the calendar years 2022 and 2021. We are pleased to report another reduction in our Scope 1 and 2 carbon emissions intensity to 0.89 tonnes of carbon dioxide equivalent emissions per £100,000 of revenue in 2022 from 0.91 in 2021. This reflects the various initiatives we have taken to become more energy efficient and reduce the carbon footprint of our own operations. Overall, we have reduced our Scope 1 and 2 (location-based) carbon dioxide equivalent emissions by 61% since 2012 from 30,587 tonnes of carbon dioxide equivalent emissions in 2012 to 11,822 tonnes in 2022. On a like-for-like basis, re-baselining 2012 emissions to reflect the acquisitions made during 2021 and 2022, Scope 1 and 2 emissions have reduced by 69%.

Galliford Try’s operations are wholly within the UK and as such this is where reported emissions arise.

Methodology
Carbon dioxide equivalent emissions (tCO2 e)are calculated using the methodology in ISO 14064-1 and the UK Government GHG Conversion Factors and Methodology for Company Reporting 2022, which are also subject to external verification. Emissions cover all those arising from our fleet, gas and electricity in all offices and sites and all other fuel used directly (for example diesel on site) including our share of emissions from joint ventures. Where data is obtained in litres used and distance travelled, these conversion factors have been used to convert to kWh.

Annual energy usage

Our total energy use, calculated from Defra 2022 conversion factors, for all our UK activities was 52,118,358kWh (2021: 48,382,602 kWh). This increase is driven by the acquisitions made in 2021 and 2022 and an increase in commuting and business travel post-pandemic, which is partially offset by reduced electricity consumption and other energy efficiencies.

Energy consumption is calculated using the same reporting boundary (operational control) that we use to calculate our carbon emissions.

Energy efficiency measures undertaken

We continue to take measures to reduce our carbon emissions, including:

• In September 2021, we committed to providing only electric or plug-in hybrid vehicles in our company car fleet.
• Continued to promote the use of hybrid generators for temporary power on our construction sites in preference to the use of conventional diesel only powered units.
• Continued to utilise our Agile & Smart Working policies across the business, which promote alternative options for travel to offices and sites using online communication technologies such as Microsoft Teams.
• Developed a Green Site Set-up Guide  to accelerate the adoption of good practice across our projects and support the transition to diesel-free construction sites.

Waste performance

Our waste intensity increased in the year, reflecting the growth in our Infrastructure business, which tends to have higher waste intensity projects. However, waste continues to be an area of focus, with increased use of Modern Methods of Construction, especially off-site manufacture, which can reduce the volumes of waste produced. We also manage our waste streams to maximise recycling and minimise waste to landfill, with 94.5% of our waste diverted from landfill (2022: 96.3%).

Water management 

Our project environment plans, already include a water management section which addresses management of consents for water abstraction and discharge, and water course pollution control. However, we recognise the importance of responsible use of water resources, including measures to reduce water consumption. We are now obtaining water consumption data as part of our environmental reporting and will use this to establish baseline performance and to inform the development of reduction targets.