Carbon Reduction Plan

Scope

SEP2’s Carbon Reduction Plan in line with PPN 06/21 includes data across the following identified scopes:

• Scope 1 – Direct GHG emissions from owned or controlled sources
• Scope 2 – Indirect GHG emissions from the generation of purchased electricity, steam, heating and cooling
• Scope 3 –Transportation and distribution
• Scope 3 – Business Travel including Hotel stays
• Scope 3 – Employee Commuting
• Scope 3 – Managed assets – electricity
• Scope 3 – Homeworking
• Scope 3 – Freighting goods
• Scope 3 – Waste Disposal

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Baseline Emissions Reporting

Baseline emissions are a record of the greenhouse gasses which have been produced in the past and were produced prior to the introduction of any strategies to reduce said emissions. Baseline emissions are the reference point against which emissions reductions can be measured.

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Baseline Year

Baseline year emissions cover the consumption and emissions generated for SEP2 limited and related business activities. Emissions data had not been officially published in previous years, and therefore we have selected to create a baseline based upon an average of two previous financial years, namely 2019/2020 and 2020/2021 in line with Streamline Energy and Carbon Reporting and Procurement Policy Note 06/21.

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Total Baseline Year Emissions – Average of March 2019 – February 2020 & March 2020 – February 2021

Additional details relating to the Baseline Emissions calculation

The baseline was taken as an average across two financial years which also included the initial COVID-19 pandemic restrictions which came into force during calendar 2020.

Total Emissions (tCO2e): 22.66

Scope 1 : 2.44

Scope 2: 5.35

Scope 3: 14.54

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Current Reporting Period Reporting – March 2024 – February 2025

Total Emissions (tCO2e): 52.28

Scope 1 : 0.00

Scope 2: 10.39

Scope 3: 41.88

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Summary of last 4 years of reporting

Below is a table showing the most recent 4 years of data in comparison to the Baseline year.

As SEP2 has grown year over year across the same period, the SEP2 Board of Directors felt it prudent to include information of the tCO₂e normalised/averaged over the number of employees at the end of the financial year to provide a more directly comparable representation of the carbon emissions of the organisation. This breakdown has now been expanded to include Carbon Intensity figures, showing our average emissions per £1 of revenue.

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Emissions Reduction Targets

Completed Initiatives

Prior to the formalisation of this Carbon Reduction Plan, SEP2 were already working towards improving the carbon emissions of its business activities.

• During 2020, all GHG emitting fleet vehicles were replaced with 100% BEV vehicles. Since then, any additional fleet vehicles have also been 100% BEV vehicles.
• SEP2 have always provided re-usable bottles and cups for employee use rather than single use paper or plastic cups.
• Recycling facilities have been available at both SEP2 offices for employee usage. These facilities have been updated from March 31st 2025 to reflect the new commitments outlined within the Simpler Recycling Legislation
• SEP2 are a member of the Cycle2Work scheme, encouraging employees to reduce their commute emissions through cycling to work.
• Hybrid home working is common across SEP2 to reduce commute emissions and direct Scope 2 GHG emissions.

Since the baseline and initial report was completed, the following activities have been completed.

• During 2023 as part of office refit, PIR/non-occupancy timers were installed within the SEP2 Head Office in Leeds to reduce Scope2 costs.
• Expansion of Scope 3 monitoring and awareness across upstream and downstream supply including initial efforts of working within our supply chain to gain additional information as to impact and ability to control such impact.
• Company Vehicle EV Emissions from UK electricity usage has been brought into scope 3 for all previous and future years, reducing our overall scope 2 emissions across previous reporting periods.
• All SEP2 Offices are now on 100% green power tariffs via Octopus Energy, reducing our Scope 2 electricity emissions to 0 for all future reporting periods.
• Creation of a company-wide Environmental, Social and Governance committee. This committee has representatives from the wider SEP2 teams, and is chaired by multiple members of the SEP2 Senior Leadership Team and also a company director.
• Octopus Electric Vehicle Salary Sacrifice Scheme – We now have 4 staff members who utilise this scheme to provide them clean,green transport options for personal and business use. This scheme is growing in interest and is already showing emissions savings from a personal perspective.

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Initiatives underway

The below initiatives are currently underway to further SEP2’s ability to monitor and control its carbon emissions.

• Review Scope 3 emissions to enable better and more granular capture of future carbon reduction abilities within our supply chain.
• Review and finalise changes to company travel policy to ensure adequate management of Scope 3 emissions is considered within the policy.
• Explore methods of offsetting to understand the best possible ways in which SEP2 can reduce the impact of our emissions. This will be lead by the ESG committee and only verified,trusted and local schemes will be considered.
• Explore verified awards/accreditation relevant to sustainability/ESG to align with and verify our current practises.
• Carbon Emissions Management Platform – To enhance current reporting figures, provide more detailed scope emission data and also improve our overall approach to carbon management as a business, driven by staff input and participation.

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Governance and Monitoring

We will carry out the following governance and monitoring actions to ensure the commitments outlined in this report are regularly reviewed and managed through to succcess:

• The ESG Committee will meet on a quarterly basis at the minimum, to review performance, discuss reduction initiatives, monitor KPI’s, escalations to SLT/Board.
• KPIs include total tCO2e (Scopes 1-3), tCO2e/employee, carbon intensity (Grams of CO2 per £1 of revenue, % electricity from renewable sources, % of suppliers engaged with reduction plans, % of business travel by low emission models).
• Annual internal audits/carbon calculations. External reviews/certification alignment to be considered for 2026 (ISO14001, Bcorp)
• Transparent reporting – Annual carbon reduction plan to be published on website, with clear baseline, current year data, initiatives, and progress against targets.
• Evidence Log – Detailed records will be maintained in line with carbon emissions calculations (energy bills, fleet records, recycling certificates, travel/mileage logs, supplier emission data) to support audits and reporting figures.

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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 standard and uses the appropriate Government emission conversion factors for greenhouse gas company reporting.

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) Standard.

This Carbon Reduction Plan has been reviewed and signed off by the board of directors.