The Group seeks to minimise the impact of our operations on the environment and is committed to reducing its greenhouse gas (’GHG’) emissions. This report outlines the Group’s GHG emissions for 2021. Using an operational approach, the Group identified its boundaries to ensure all activities and facilities for which it is responsible were being recorded and reported in line with Scope 1 and 2 of the SECR regulation, which applies to company financial years starting on or after 1st April 2019. Relevant data was provided to an independent consultant, EcoAct. The validity, accuracy and completeness of the data was audited by EcoAct and then used to calculate the GHG for Macfarlane Group. Calculations were completed in accordance with the main requirements of ISO-14064-1 standard and deliver both absolute values and an intensity ratio for Macfarlane’s emissions. Activities conducted in the Republic of Ireland, the Netherlands and Sweden, and Scope 3 (Business travel fuel) are now included in the calculations as per the SECR regulations.
The Group used total turnover (£000) in the reporting period to calculate the intensity ratio, as this allows emissions to be monitored over time, taking into account changes in the size of the Group. This method was historically chosen because it provides the greatest degree of accuracy. While the turnover basis allows for business growth to be considered, it can include variances due to material price increases. Therefore, from 2022, we plan to use tonnage as a basis for the intensity.
Taskforce on Climate-related Financial Disclosures (TCFD)
Macfarlane Group supports the recommendations of the Financial Stability Board’s TCFD and continues to make progress in our consideration and response to the issue of climate change.
The Board considers climate change risk as part of its risk management oversight. Areas where climate related risks could impact the business include increased raw material prices, increased business interruption and/or reduced economic activity due to the increased frequency of extreme weather incidents.
Climate related risks and opportunities are an integral part of the Macfarlane Group strategy as we seek to provide our customers with the information and options to allow them to make better informed decisions about the impact of our products and services on the environment. Packaging is an essential commodity for many businesses, but it is important to consider ways to minimise the impact that packaging can have on the environment, without compromising on product protection.
The assessment of climate related risks and opportunities is an ongoing area of focus for Macfarlane Group and further work is planned to fully understand the impact of climate change on our business and to ensure that we have the appropriate mitigation in place to mitigate these risks.
Registration to ISO 14001
With the exception of certain recent acquisitions, all our UK packaging sites are registered to BSI ISO 14001 Environmental Management Standard. As an internationally recognised standard on environmental management, registration involves a process of continual assessment of our environmental standards and processes. A key objective in 2021 is the development of a transition plan to register recent acquisitions under the standard.