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Walk the walk: make our business carbon neutral by 2050

Looking Back at FY20

In FY20, we committed to make our business carbon neutral by 2050. To help achieve this goal we will introduce a more structured approach to measuring and reporting key metrics including recycling, waste reduction and GHG emissions. By FY21 we plan to have added Scope 3 to our existing Scope 1 and 2 GHG reporting, and to have introduced Science Based Targets for reductions mapped against the UN Sustainable Development Goals

We recognise we have a duty to minimise the impact of our activities on the environment. We have made progress in recent years but the time has come to set a clear and achievable target to achieve net zero, and I am delighted we have now formally adopted that target.
Helen Jones Chair, ESG Committee

Introduction

Halfords has a role to play in helping the nation transition to a more sustainable future. We are determined to do all we can to help people make greener transport choices, offering the products and services they need to make the leap to electric. But we are equally determined to do that in a way which minimises waste and reduces the amount of energy we use across the business. In FY20, we made two important commitments. The first was to adopt formally the target of making our business carbon neutral by 2050, and the second was to adopt a series of Science Based Targets, creating a route map towards that goal.

Global Greenhouse Gas Emissions

  2019 tCO2E 2020 tCO2E
Retail (inc Cycle Republic) Directly Purchased Electricity 275 255
Autocentres Directly Purchased Electricity 2,275 2,131
McConechy's Directly Purchased Electricity - 766
Halfords Group Directly Purchased Electricity 13,569 10,321
Total Electricity 16,119 13,473
Autocentres Combustion of Gas 1,842 4,217
Tredz and Wheelies Directly Purchased Gas 6 7
McConechy's Combustion of Gas - 94
Halfords Group Combustion of Gas 7,307 7,431
Total Combustion of Gas 9,155 11,749
Cars on Company Business 1,901 1,868
Overall totals 27,175 27,090
Company's Chosen Intensity Measurement: tCO2E per £1m Group Revenue 23.87 23.45

GHGs

The total Scope 1 and 2 quantity of energy consumed across the Group in FY20 was:

  • Electricity: 52,712,652 kWh (-4,229,494 kWh versus FY19)
  • Gas: 63,902,230 kWh (+14,135,195 kWh versus FY19)
  • Total 116,614,882 (+9,905,701 kWh versus FY19)

The Scope 1 and 2 tCO2E (see table headings below) for FY20 was:

  • Electricity: 10,321 (-3,248 versus FY19)
  • Gas: 11,749 (+2,594 versus FY19)
  • Company Cars on business: 1868 (-33.28 versus FY19)
  • Total 27,090 (-85.28 versus FY19, note FY20 figure includes McConechy’s for which gas consumption is not available for FY19)

Reducing Carbon Footprint

We are committed to making the business carbon neutral by 2050 and we will be incorporating Scope 3 emissions into our reporting by FY21, adopting Science Based Targets for emissions reductions.

In FY20 we continued to roll-out energy-saving LED lighting across our estate. During the year, 199 locations benefited from LED lighting, resulting in a 6.37m kWh reduction in energy consumption, the equivalent of 1,629 tonnes reduction in annual CO2 emissions.

We have been working closely with our logistics partner, Wincanton, to reduce total mileage by maximising the utilisation of trailers and improving scheduling efficiencies. In FY20 we achieved a reduction in CO2 emissions from logistics of 922 tonnes.

Over the past 12 months, Halfords has invested in a number of energy saving measures across the estate, these being:

  • 172 stores fitted with new LED lighting and BMS control system;
  • a further 27 stores were completed in February 2020, taking the total to 199;
  • capital expenditure for a further 40 stores has been approved and will commence once the current restrictions have been eased; and
  • invested in AMR for all sites with a gas supply, meaning all sites now have access to half hourly data for both gas and electricity.

For the coming financial year, Halfords plans to recommence the second phase of the LED and BMS control roll-out to the remaining 40 stores. Should budget permit, it is planned that a third phase of LED and BMS will be rolled out.

  2019-20 CO2et % of total
Gas 11,748 45.78%
Electricity 13,473 52.50%
Transport 442 1.72%
Total 25,664  

Scope Breakdown CO2et

Scope 1 11,748
Scope 2 13,473
Scope 3 442

Electricity

Brand Total kWh CO2et
Cycle Republic 998,900 255
Halfords 40,380,410 10,321
Halfords Autocentres 8,335,409 2,131
McConechy's 2,997,934 766
Total 52,712,652 13,473

Gas

Brand Total kWh CO2et
Halfords 40,419,189 7,431
Halfords Autocentres 22,935,962 4,217
McConechy's 509,293 94
Tredz and Wheelies 37,787 7
Total 63,902,230 11,748

Transport

Brand CO2 (kg) CO2et
Retail Air 351,871 352
Retail Rail 16,733 17
HAC Air 69,068 69
HAC Rail 4,064 4
Total 441,736 442

46%

Gas

52%

Electricity

2%

Transport

Science Based Targets

Our Scope 3 reporting will incorporate emissions from our purchased goods and services and capital goods. In setting targets for further emissions-reduction, we will use a methodology consistent with the Science Based Target Initiative (SBTi), a collaboration between CDP, the United Nations Global Compact, World Resources Initiative, WWF and We Mean Business Coalition

EV Fleet Transition

We believe that smart, independent transportation is vital to our wellbeing and the environment and we are on a mission to support a sustainable future by championing all forms of electric transport and supporting our customers as they make their transportation choices.

As well as training technicians in electric vehicle and E-bike servicing and broadening our range of E-bikes and E-scooters, we are also committed to transitioning our own fleet of vehicles to electric. Currently, a little over 3% of our fleet is electric or hybrid.

Recycling and Waste Management

In January, we initiated a new recycling initiative across our stores, with colourcoded waste collection for general waste, dry mixed recycling and clear plastic. In addition, Bikehut colleagues started to use empty bike boxes for cardboard collection. This new approach to waste management is part of the One Way system which standardises operational processes across all stores, driving consistency and efficiency. Previously, colleagues were collectively spending 163,000 hours handling waste each year.

We initiated a soft plastic recycling initiative in FY20 and began an audit of plastics suppliers. Achievements in the year include blister packaging removed from our CO2 bike pump and spare cable ties removed from hand pump packaging.

We also stepped up our efforts to recycle rubber in FY20, including collecting 3,122,924 kg of old tyres for recycling into new products. A programme to find a solution for recycling old wiper blades was initiated in FY20. We dispose of over one million blades each year.

We recycle 100% of used car batteries when we fit new ones for our customers. In FY20 we collected and recycled 4,562kg of used domestic batteries in our UK stores.

Our bike recycling scheme goes from strength to strength and last year about 62,000 bikes went to our charity partners ReCycle and Cycle for Good.

During the 2019 calendar year, Halfords Autocentres achieved 100 per cent recycling rates for a wide variety of products, including tyres, oil filters, bulk oil, and battery boxes. By diverting 943.4te of product from landfill (77%) Halfords Autocentres achieved carbon savings of 5,607,908 kg, equivalent to 5,802 trees (calculated by AWS and agents and endorsed by Carbon Footprint Ltd).

Lifetime

OUR BIKE RECYCLING SCHEME GOES FROM STRENGTH TO STRENGTH AND LAST YEAR ABOUT 62,000 BIKES WENT TO OUR CHARITY PARTNERS RE-CYCLE AND CYCLE-FOR-GOOD

Key Facts

3,122,924 kg

of old tyres collected and recycled

100%

of used batteries recycled

4,562 kg

of used domestic batteries collected and recycled

Case Study

Cycle-for-Good

David Namuthe, 25, works at Mother Teresa Children’s Centre as an Extended Schools Worker. David’s wife Prisca, 22, has to work in a café abroad in South Africa because finding work in Malawi is almost impossible. They have two young boys, Brian is five years old and goes to Mulunguzi primary school in Chilomoni. His brother Luckson is three years old and is at a nursery school. With his wife away, David must take the children to school each day. School and work start at 7:30am and finish at 4:30pm and with a one hour walk each way it is a long day. David had a bicycle but the children did not. David decided that now Brian was five he could ride a bike to school. David paid for the bike by doing laybuy. This means each month a portion of his salary was put aside by Beebikes so that he could pay in affordable small instalments.

Brian absolutely loves his bike as he does not have many toys. He enjoys riding to school and likes playing with his friends at the weekends. It is wonderful to be able to share his bike as not many of his friends have one. David and Brian can now enjoy going for a cycle ride together and can go shopping at Blantyre market. It is much better than going on a minibus and they can save the minibus fare which really helps the family finances.

With a big smile David said ‘Please thank the Halfords people in the UK for donating their bicycles so our families can enjoy cycling’.