Carbon Reduction Plan 2023

Supplier name: Microlink PC UK Limited

Publication date: 01 November 2023

Commitment to achieving Net Zero

Microlink PC (UK) Ltd is committed to achieving Net Zero emissions by 2050.

Baseline Emissions Footprint

Baseline emissions are a record of the greenhouse gases that have been produced in the past and were produced prior to the introduction of any strategies to reduce emissions.

Baseline emissions are the reference point against which emissions reduction can be measured.

CORRECTION NOTICE

Gas Emissions for FY22 and FY23

During the Calculation Period for FY23, we noticed discrepancies within our gas usage and realised that our usage was calculated using estimated meter readings that failed to reflect consumption accurately.

From the handful of accurate meter readings we did have across 2021, 2022 and 2023 we have been able to re-calculate and average gas usage covering FY22 and FY23.

Our Scope 1 emissions for FY22 have been adjusted to reflect actual gas usage in that year with greater accuracy.

Our new calculations have changed our Scope 1 emissions as follows:

Employee Commuting Emissions

Further, we also noticed discrepancies and a miscalculation in our Employee Commuting Emissions (Category 7) figure for FY22. This has been recalculated using the GHG emissions factors and the new figures are set out below.

Current Emissions Reporting

Note:

Whilst this year our emissions have dropped quite dramatically, as our business grows and develops across multiple countries, we expect our emissions to grow respectively. From 2023 onwards, we will be publishing graphs showing our annual emissions compared to our employee headcount and annual turnover.

Emissions reduction targets

In order to continue our progress to achieving Net Zero, we have adopted the following carbon reduction targets over the long term:

• Installation of solar panels on the roof of Microlink House, with batteries on hand to store excess energy generated.
• Installation of more energy efficient insulation throughout Microlink House, which will decrease the amount of heat energy lost, especially through the winter months.
• Continuing to encourage a hybrid work system, to reduce the emissions of those working from Microlink House.
• Due to the success of the above point, the upstairs section of Microlink House will now be “shut down” with only minimal heating to prevent frost damage. Those continuing to work from Microlink House will only be permitted to work in a redesigned space downstairs.

We project that carbon emissions will decrease in line with our Science-Based Near-Term Target by 42% from a 2022 baseline to 117 tCO₂e per year by 2030, or before. We have already exceeded our original projection of a reduction to 138 TCO2e by 2026.

Progress against these targets can be seen in the graphs below

This dual bar graph indicates projected emissions againsts actual emissions from 2021 to 2050. Along the x-axis are the years, 2021-2050. Along the y-axis, are the emissions, shown in tCO2e, from 0 to 400. 2021 has a projected and actual emissions figure of 334. 2022 has a projected emissions figure of 322 and an actual emissions figure of 202.23. 2023 has a projected emissions figure of 156.57 and a projected emissions figure of 131.75. The graph then shows projected emissions only, reducing year on year to 0 emissions per year by 2050.

Emissions Compared to Annual Employee Headcount

This scatter graph compares total annual emissions in tCO2e on the y-axis against annual employee headcount on the x-axis. 2021 indicates emissions of 334 and a headcount of 120. 2022 shows emissions of 202 and a headcount of 118. 2023 shows emissions of 132 and a headcount of 91.

Emissions Compared to Annual Turnover (£mil) per Year

This scatter graph compares total annual emissions in tCO2e on the y-axis against annual turnover in British sterling million on the x-axis. 2021 indicates emissions of 334 and a turnover of 10.4 million. 2022 indicates emissions of 202 and a turnover of 9.1 million. 2023 indicates emissions of 132 and a turnover of 10.1 million.

Carbon Reduction Projects

Completed Carbon Reduction Initiatives

The following environmental management measures and projects are being implemented since the 2021 baseline.

1. Currently running a rolling 80% hybrid working environment with the following benefits:
   1. Less commuter miles – which in turn means:
      1. Less fossil fuel consumption
      2. Less wear on transport infrastructure

• Less vehicle wear and tear or need for renewed or replacement parts (tyres etc)

1. Secure systems mean no ability for remote workers to print either at home or from home to work – reducing paper wastage.
2. Less workers in the building means that section of Microlink House can be “turned off” to save energy and gas. These sections will no longer be working sections of the building and will have only minimal heating in the winter months to prevent frost.
3. (NB – Hybrid working does not reduce power consumption – in fact it may increase it. Each Hybrid worker is probably heating and lighting a larger square foot working area than they would proportionately occupy in the Office. However, there is still believed to be a net saving, after commuting is factored in)

2. Interrogating Product Supply chain to produce a Sustainability Index on all Catalogue items (Customers need to be able to buy on sustainability not price, to meet their own sustainability targets) to reduce our upstream Scope 3 footprint. This index will be created through “scoring” companies on their emissions and how driven they are to reduce their emissions, amongst other factors.
3. Researching reduced and sustainable packaging for deliveries (Recycled cardboard boxing; cardboard, paper and/or wool protective packaging). In 2022, Microlink invested in a cardboard and paper shredder which we will use to create sustainable packaging materials, further reducing our plastic waste.
4. Switching deliveries to a provider against their undertaking to secure electric only delivery vehicles by 2025. We are currently working with DPD using their electric vehicle delivery fleet.
5. Actively pursuing an SBTi Verified Net Zero Carbon target (using 2022 as a base year to look to maintain and improve on reductions already made). We submitted our SBT Near-Term targets in October 2023.
6. Sharing our learnings with our suppliers to encourage increased sustainability practices from them (further reducing our downstream Scope 3 footprint). This is done through our annual supplier audit, and through sharing our own processes with the suppliers, specifically with the more complex carbon emissions calculations in Scope 3. We have already seen a handful of our suppliers begin to take some initiative with calculating their emissions, albeit at a very basic standard. This is helping progress our Product Sustainability Index (discussed in point 2 above).
7. Actively researching ISO14001 with the intention to implement the standard by the end of 2024. This will assist us in ensuring we maintain high standards when it comes to emissions reductions and will keep us updated on any changes in legislation and procedures.
8. Switching all bulbs in Microlink House to LED which will reduce our overall energy consumption. Further, we are installing motion sensors on lights to reduce energy wastage from lights being left on. The attached Warehouse has already had LED lighting fitted and will also have motion sensors installed.
9. Researching the use of AirSource Heat Pumps within both Microlink House and the attached warehouse to reduce gas consumption in the colder months.

Declaration and Sign Off

This Carbon Reduction Plan has been completed in accordance with PPN 06/21 and associated guidance and reporting standard for Carbon Reduction Plans.

Emissions have been reported and recorded in accordance with the published reporting standard for Carbon Reduction Plans and the GHG Reporting Protocol corporate standard⁷ and uses the appropriate Government emission conversion factors for greenhouse gas company reporting⁸.

Scope 1 and Scope 2 emissions have been reported in accordance with SECR requirements, and the required subset of Scope 3 emissions have been reported in accordance with the published reporting standard for Carbon Reduction Plans and the Corporate Value Chain (Scope 3) Standard⁹.

This Carbon Reduction Plan has been reviewed and signed off by the board of directors (or equivalent management body).

Signed on behalf of the Supplier:

Michael R Moore

Legal Counsel – Authorised Signatory

Date: 01 November 2023

Sources:

7 – https://ghgprotocol.org/corporate-standard

8 – https://www.gov.uk/government/collections/government-conversion-factors-for-company-reporting

9 – https://ghgprotocol.org/standards/scope-3-standard