Environment

Protecting our environment

Environmental issues, including climate change, are a challenge affecting all businesses globally and an issue we must address collectively to preserve our planet for future generations.

Full disclosures about our environmental impacts, governance, strategies, management and relevant data can be found in our Sustainability Report.  The following page summarises some key themes from our Report and may also include additional or updated data not found in our 2021 Sustainability Report.

Environment Commitment Statement

Within Halma, we recognise that our activities have an environmental impact.  Our purpose of growing a safer, cleaner, healthier future for everyone, every day is central to who we are as a business and the foundation for our approach to environmental issues. It drives us to maximise our positive impact on the world, and to minimise the negative effects that we may have as a business.

We commit to encouraging all Halma companies to reduce their negative environmental impact by continually improving the efficiency of their production methods and their supply chain.

We are also focused on our positive impact on the environment, and Halma companies are world leaders in a number of technologies which help to minimise environmental damage.  We are committed to the development of equipment for measuring and monitoring environmental changes and controlling the impact of industrial activities over the long term.

Marc Ronchetti is the Board member responsible for environmental issues.

Guiding principles:

  • Halma companies should meet and, where possible, go beyond mandatory environmental legal and regulatory requirements.
  • Halma is committed to continually improving its environmental performance, and to transparent disclosure of its performance through measuring, monitoring and reporting its GHG, waste and water emissions, and its progress against targets and ambitions including:
    - Progress towards current carbon intensity targets
    - Setting ambitious carbon targets which align to climate science
    - Working towards reusing or recycling 99% of e-Waste
    - Moving all UK sites to REGO certified electricity and ‘green’ gas
  • Halma is committed to advocating the adoption of best practices throughout the Group, and to lowering the environmental impacts of our products and operations, including through:
    - Promoting energy efficiency and awareness throughout the Group
    - Championing our chosen UN Sustainable Development Goals (SDG 3 –  Good health and wellbeing, SDG 6 – Clean water and sanitation, SDG 9 – Industry, innovation and infrastructure, SDG 11 – Sustainable cities and communities), alongside supporting other SDGs where relevant to our business
    - Seeking to incorporate environmental best practice within an increasing range of group procedures and policies
    - Championing our operating companies’ efforts to lower their products’ environmental impact, including exploring utilising recycled material, reducing packaging, contributing towards the circular economy, and supporting Life Cycle Assessment (LCA) to identify material and carbon savings where relevant
    - Encouraging water conservation and reduction of wastewater emissions throughout the Group 
  • We encourage operating companies, where appropriate, to attain ISO14001 accreditation.
  • Halma is committed to encouraging our companies to build responsible, resilient and sustainable supply chains; including:
    - Procuring materials in line with our ethos, our Code of Conduct, and our Conflict Minerals policy.
    - Identifying potential risks both with direct and indirect suppliers
    - Further assessing material environmental impacts within our supply chain, including climate change impacts
    - Sharing best practice and knowhow across our companies
    - Aiming towards developing an overarching sustainable procurement policy
  • In particular, Halma expects suppliers to endeavour to reduce environmental impacts where relevant, including reducing energy use, GHG emissions, pollutants to water and air, and water usage, and to consider reuse and recycling of resources consumed by their businesses. 

Addressing climate change

The climate crisis is one of the biggest issues facing our society and our environment, and it impacts Halma’s efforts to grow a safer, cleaner, healthier future for everyone, every day. At the same time, we believe that addressing the climate crisis, through creating low-carbon economies, transitioning to responsible consumption and production methods, and addressing social inequities and health issues, creates multiple opportunities for Halma within niche markets with long-term growth drivers.

Recognising this, we have identified the transition to a low-carbon economy as a key long-term growth driver that we will use internally to assess organic and inorganic growth opportunities. In addition, we have increased the priority of the climate crisis across our business by highlighting the issue as a Key Sustainability Objective (KSO) within our new Sustainability Framework. This KSO is supported by significantly increased ambitions to reduce our own operational carbon footprint, as evidenced by our new targets set out below.

We have also taken initial steps during the year towards applying the principles of the Task Force on Climate-related Disclosures (TCFD), in line with our commitment to fully report against TCFD in our Annual Report for the year ended 31 March 2022.

Our disclosures around Climate-related governance, risks, strategy, targets and metrics and progress during the year can be found in our Sustainability Report.  

Targets

From 2010 to 2021, we set a target to reduce our total carbon emissions relative to revenues by 10% over consecutive three-year periods. This intensity target has always been achieved, including for the three years ending in March 20211.

As of 1 April 2021, we have adopted an absolute, 1.5 degree-aligned emissions reduction target, calculated using the guidance from the Science-based Target Initiative. We are targeting reducing our global Scope 1 & 22 GHG emissions (tonnes of CO2e) by 42% by the year ended 31 March 2030, compared to our 2020 base year.

1. Our emissions in 2021 have been impacted by the COVID-19 pandemic and do not reflect emissions for a more normalised year. Please see additional commentary in the Sustainability Data section on page 75 of our Annual Report and Accounts.
2. Market-based Scope 2 methodology

In addition, we have committed to achieving net zero for our global Scope 1 & 21 GHG emissions by 2040. We intend to define net zero utilising applicable guidance for Scope 1 & 2 from the Science-based Targets Initiative. While this guidance is currently under development, we expect that we will abate our emissions as much as feasibly possible before neutralising residual emissions by permanently removing an equivalent volume of atmospheric CO2.

Please see more information in our Sustainability Report.

Our GHG emissions targets

42%

absolute reduction in Scope 1 & 21 GHG emissions by FY29/2030 from FY19/2020 baseline
Achieve Net Zero Scope 1 & 21 GHG emissions by

2040

1 Market-based Scope
2 methodology

GHG emissions and energy use data for the period 1 April 2020 to 31 March 2021

Tonnes of CO2e 1 April 2020 to 31 March 2021 1 April 2019 to 31 March 20201,2   1 APRIL 2018 TO 31 MARCH 20194
Emissions from: UK and offshore Global (excluding UK and offshore) TOTAL UK and offshore Global (excluding UK and offshore) TOTAL   UK and offshore Global (excluding UK and offshore) TOTAL
Scope 1: Combustion of fuel and operation of facilities3 1,562 2,643 4,205 2,158 2,982 5,140   1,535 2,889 4,424
Scope 2 (Location-based): Electricity, heat, steam and cooling purchased for own use 2,434 8,301 10,735 2,696 10,418 13,114   2,778 10,679 13,457
Scope 2 (Market-based): Electricity (net of market instruments), heat, steam and cooling purchased for own use3 2,285 8,552 10,837 2,899 10,562 13,461        
Total gross Scope 1 & Scope 2 emissions (Location-based) 3,996 10,944 14,940 4,854 13,400 18,254   4,313 13,568 17,881
Total gross Scope 1 & Scope 2 emissions (Market-based) 3,847 11,195 15,042 5,057 13,544 18,601        
Energy consumption in MWh used to calculate above emissions 19,402 32,937 52,339 21,684 40,599 62,283   17,178 37,474 54,652
Scope 3: Business air travel, WTT (Well to Tank), grey fleet (private cars used for business), waste and wastewater generation, water withdrawal 1,100 5,489 6,589 4,191 13,525 17,716   4,768 13,819 18,587
Total gross emissions (Location-based) 5,096 16,433 21,529 9,045 26,925 35,970   9,081 27,387 36,468
Total gross emissions (Market-based) 4,947 16,684 21,631 9,248 27,069 36,317        
Intensity measure of tonnes of CO2e gross emissions per £m of revenue (Location-based) 13.3 17.4 16.2 21.8 27.1 25.6   37.4 28.3 30.1
Intensity measure of tonnes of CO2e gross emissions per £m of revenue (Market-based) 12.9 17.7 16.3 22.3 27.3 25.8        

1. We have shown our Scope 2 emissions using a market-based methodology for the first time in the Group’s 2021 Annual Report, and included a market-based calculation comparative period. Our Scope 1 & 2 (market-based) GHG emissions for the year ended 31 March 2020 form the baseline for our Science-based target to reduce our Scope 1 & 2 emissions by 42% by 2030. Therefore, given the acquisitive nature of Halma, we expect to regularly recalculate our base year for the structural change trigger of acquisitions and disposals, and have chosen to apply an ‘all-year’ approach. This means that we have recalculated our current year and 2020 baseline figures to include full year emissions for acquisitions made during 2021 and 2020, and to remove all emissions relating to Fiberguide, which was sold during 2021. Prior to setting our Science-based target, we did not adjust our current or baseline figures for acquisitions and disposals. This base year recalculation for structural change trigger increased our 2020 total Scope 1 & 2 emissions by approximately 4%.
2. Regular review of data is carried out to ensure accuracy and consistency. This review has led to changes to our comparative figures for Scope 1 & 2 emissions, including corrections to our previous calculation methodology for location-based Scope 2 emissions, geographical intensity measures and minor corrections for new or revised data. The net impact of these changes was to increase our 2020 baseline total Scope 1 & 2 emissions by approximately 2%.
3. Included in this Scope are GHG emissions from direct fuel combustion at our sites and from fuel use in our company-owned or leased vehicle fleet.
4. The base year recalculations and changes to comparative figures have not been applied to the year ended 31 March 2019, which is before our base year and shown here, as published, for information only.  Therefore, the data from 1 April 2018 to 31 March 2019 is not directly comparable with the data from 1 April 2019 to 31 March 2021. 

Water use and waste production data for six years ended 31 March 2021

We encourage our companies to reduce their water use and their solid and liquid waste production where possible. Please see information about our water management activities and water scarcity assessment on in our Sustainability Report.

Water and waste data for the period 1 April 2020 to 31 March 2021

  Total
  m3
Total water withdrawals1 83,436
Water withdrawals in water scare areas2 37,474
Total water withdrawals per £1,000 revenue 0.063
   
Total water discharge 75,071

1Water is withdrawn from and discharged to municipal/third party sources, with the exception of one facility which utilises a ground water source (not located in a water-scarce area). The amount withdrawn from ground water is estimated to be approximately 1% of total water withdrawal.

2Defined as manufacturing, testing or R&D sites, or Hubs and Group Head Offices employing more than 50 people, operating in areas of 'high (40-80%)' or 'extremely high (>80%)' baseline water stress, according to the World Resources Institute's Water Aqueduct water risk atlas tool.

  Recycled Non-recycled Total
  Metric tonnes Metric tonnes Metric tonnes
Solid waste (non-hazardous) 1,4851 3,050 4,535
Solid waste (hazardous) 351 9 44
Electronic waste 8 8 16
% total solid waste diverted from landfill     33%
Total solid waste production per £1,000 revenue (kg)     3.5

1Approximately 233 metric tonnes of non-hazardous solid waste and 9 metric tonnes of hazardous solid waste included within the Recycled total was incinerated with energy recovery.

      m3
Total liquid waste (hazardous)     181
Total liquid waste (non-hazardous)     440

 We have significantly changed our methodology for collecting and reporting our water and waste data in 2021. As such, meaningful comparatives are not available. Total figures are based on available source data and estimated if appropriate where source data is not available. In particular, both actual and estimated data at the company-level is limited for all types of solid and liquid waste, and therefore the figures shown are likely to be under-estimated. We expect to improve these disclosures going forward. Prior year data compiled under the previous methodology can be found in the tables below, and in the Basis for Preparation document.


Prior water use and waste data

  2016 2017 2018 2019 2020
Water usage 83,704 89,525 83,856 75,987 76,831
Water usage per £1000 sales 0.104 0.093 0.078 0.063 0.057
Solid waste 15,931 18,300 18,938 19,870 22,590
Solid waste per £1000 sales 0.020 0.019 0.018 0.016 0.017
Liquid waste 20,491 27,670 29,547 22,164 23,013
Liquid waste per £1000 sales 0.025 0.029 0.027 0.018 0.017

Focusing on the Circular Economy

We are at the initial stages of understanding the most relevant focus areas and possible longer-term targets for our Circular Economy KSO. However, a number of our companies are already making good progress in implementing more circular economy principles and concepts into their businesses. For example:
Crowcon is significantly reducing the amount of copper required within its solutions and working towards removing lead, a hazardous material, from its oxygen sensors throughout its product range. Alongside this, their fixed detector products can be fully disassembled for recycling. Cosasco utilises waste components from its manufacturing and servicing processes to build and refurbish products.

Multiple companies are transitioning to more sustainable packaging solutions, including reuse of incoming packing material, replacing physical manuals with online versions, and replacing plastic foam with recycled paper product protection.

Life Cycle Analysis Apollo began a small pilot project to assess Lifecycle Analysis techniques that could be used to analyse environmental impacts associated with some of its products. This work was put on hold during the COVID-19 pandemic but we expect to resume the pilot project in the coming year.

In addition, during the 2015 to 2018 period one of our operating companies, Hanovia, utilised Life Cycle Analysis to evaluate new types of high efficiency lamps and mercury-free lamps. Bringing together Hanovia and a number of other organisations, the ECO UV project funded under the EU Horizon 2020 programme aimed to demonstrate and characterise an innovative UV lamp and drive electronics technology for chemical-free water treatment and disinfection. Using this insight, Hanovia is in the process of commercialising the technology. The Life Cycle Analysis and other related reports on the project are available here.

e-waste

We expect our existing aim to reuse or recycle more than 99% of electronic waste (e-waste) to be formalised as a supporting target for our Circular Economy KSO. Based on available data, almost half of currently reported e-waste is already recycled, and we have appointed a global e-waste recycling supplier that our companies can utilise to increase their recycling rates and offer a recycling service to customers where feasible.

Response to the Sustainability Accounting Standards Board (SASB) for the period 1 April 2020 to 31 March 2021

A table outlining our responses to those disclosures against which we are currently able to report under the sector-specific standard for Electrical & Electronic Equipment is available in our Sustainability Report.