Sustainability

Our purpose of growing a safer, cleaner, healthier future for everyone, every day is the foundation for our approach to sustainability.

Purpose-aligned growth

Our purpose drives every business decision we make. It ensures everyone who works with us is focused on doing those things that make it happen. Our technologies solve some of the world’s most pressing issues, from air quality to road safety and preventable blindness. 

Our purpose defines the three broad market areas where we choose to operate, within the safety, environmental, and health markets. 

We believe the issues we address are global and long-term in nature and expect them to support delivery of sustainable growth with positive impact. This is why our purpose-aligned growth is a key component of our Sustainable Growth Model, in which the value we create comes from the combination of our growth and
returns, and our positive impact. 

Further examples of our positive impact can be found on Our Positive Impact page.  

 

Introducing our Sustainability Framework

Halma companies recognise that their operations have negative environmental and social impacts. These are relatively small within our own operations, given that we have low capital-intensity manufacturing processes and our operations are geographically close to our end markets. However, as we begin to measure and understand our wider value chain impacts, and as various environmental and social issues, including the climate crisis, are becoming more acute, we are ambitious to go further and faster in reducing our negative effects at the same time as increasing our positive impacts.

We also want to ensure we are focused on opportunities to multiply our positive impact, for example in how we design our products and services, in the way we do business, and in how we interact with our employees, our suppliers, our communities and wider society.



 

Given the structure of our Group, which is made up of more than 40 small to medium-sized companies, we recognise the need to prioritise our time and resources in those areas that will deliver the largest reduction in negative impact or the greatest amplification of positive impact.

Our Sustainability Framework sets out our focus, which we will further develop and roll out across our companies over the next twelve months.  Under this framework, we will prioritise a small number of areas that are highly purpose-aligned, important to Halma and our stakeholders, and relevant to most of our companies – our Key Sustainability Objectives (KSOs). 

By setting ambitious objectives and stretching supporting targets for these KSOs, we believe we can significantly amplify our existing purpose driven positive impact. In turn, these KSOs will be supported by the policies and metrics that we consider essential to responsible business conduct.

 

Our Key Sustainability Objectives

Our initial KSOs will be focused on:
• Climate Change, 
• the Circular Economy, and
• Diversity, Equity and Inclusion. 

Our specific actions in these areas will evolve, but we expect to address climate change in terms of both the opportunities and risks it presents and by minimising our own greenhouse gas emissions. We expect to work towards designing out waste and pollution and incorporating reuse and recycled materials within our products where feasible, and we will prioritise inclusion, diversity and equity to support our purpose-aligned growth. For more on our Diversity, Equity and Inclusion activities, commitments and facts visit our People page

We will seek to disclose more specific objective statements and additional supporting, medium- and long-term targets for our KSOs as they are developed, and in future consider aligning management incentives with them where appropriate. We have committed to new GHG emission reduction targets to support our Climate Change KSO, which include a 1.5 degree aligned target for 2030 and a commitment to net zero emissions by 2040 for Scopes 1 & 2.

Supporting these KSOs, the sustainability issues, policies and metrics that we include within the Responsible Business section of our Sustainability Framework are those which relate to other areas of corporate social responsibility, compliance, or risk reduction. In many cases we expect these areas to be of lower materiality, or be highly material but already well managed by our companies compared to our KSOs. 

As a result, while we will continue to develop and maintain compliance against appropriate policies, procedures and standards, and to report our progress on them, we do not expect to develop ambitious targets in these areas. As part of the continued development of the Sustainability Framework, we will be reviewing our current non-financial KPIs against the Framework and any newly introduced targets and metrics over the next 12 months to determine the most appropriate non-financial KPIs for the Group going forward. 

Our Sustainability highlights

We recognise there is more work to do but in the last 12 months we are proud of: 

• Launching our Sustainability Framework
• Introducing our Water for Life partnership with WaterAid
• Setting a 1.5 degree aligned 2030 GHG emissions reduction target and commitment to net zero Scope 1 & 2 emissions by 2040
• Increasing renewable energy from 8% to 15% of electricity consumed
• Further assessments of environmental and supply chain impacts
• Improvements in sustainability data and disclosures
• Committing to paying the Real Living Wage in UK operations by 1 June 2022
• Global implementation of an equal parental leave policy
• Continued progress on gender diversity within our workforce
• Extremely strong Health and Safety performance, alongside mental health and employee wellbeing initiatives.

Sustainability Contact

Marc Ronchetti

Chief Financial Officer

Tel: +44 (0)1494 721111
Email: halma@halma.com