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ESG Strategy

During the year, our focus has been to ensure the ongoing delivery against objectives and targets for the four priority areas: Electrification; Net Zero; Diversity and Inclusion; and Product, Packaging and Waste Management. We are pleased with the strong progress made across all four areas. Below we detail our progress and priorities for the next 12 months.

Electrification

Electrification

The leading name in electric services giving everybody the confidence to switch and continually enjoy the benefits of electric mobility.

Link to UN SDG

Our Focus

  • Lead the market in Electric Servicing as the UK shifts towards more sustainable mobility options, specifically Electric Vehicles (“EVs”), E-Bikes and E-Scooters.
  • Investing in education and community engagement programmes to help and support consumers to make climate-smart choices.
  • Providing industry-leading training to our colleagues to better support customers as they make the switch to electric.
  • Broadening our ranges of electric services and solutions e.g. E-bikes/E-scooters making the transition to electric travel easier.
  • Lobbying campaigns designed to accelerate the transition to electric vehicles.

Priorities for the Next 12 Months:

  • Focus on consistently delivering electric services and solutions to customers across the Group.
  • Further develop the range of electric services and solutions we offer
    our customers.
  • Enhance our customer communications to enable us to better support customers as they make the switch to electric mobility.
  • Continue lobbying campaigns for the legalisation of private E-scooters in
    public areas.
  • Invest in equipment and training to support growing demand for EV servicing.

Net Zero Commitment

Achieve Net Zero value chain emissions by 2050 and interim reductions aligned to science-based principles.

Link to UN SDG

Our Focus

  • Reduce our carbon emissions and make progress with our science-based targets ("SBTs"), as approved by the Science Based Targets Initiative ("SBTi"). These targets are aligned to the more ambitious 1.5ºC scenario set out in the Paris Agreement (2015).
  • Reduce absolute Scope 1 and Scope 2 GHG emissions 42% by 2030 from a 2020 base year.
  • Increase annual sourcing of renewable electricity to 100% by 2030 from 0%
    in 2020.
  • Reduce absolute Scope 3 GHG emissions from 'Purchased Goods and Services', 'Capital Goods' and 'Upstream Transportation and Distribution' 25% by 2030 from a 2020 base year.
  • Our ultimate aim is to achieve Net Zero emissions across our value chain by 2050. We recognise we cannot do this alone, so will collaborate and partner with our suppliers, vendors and customers to work towards a Net Zero future.

Priorities for the Next 12 Months:

  • Develop a roadmap to achieve Net Zero.
  • Continue to make progress against our SBTs.
  • Roll out EcoVadis system with our suppliers to better understand their position in carbon management.
  • Continue to embed climate risk within our risk management framework.

Diversity & Inclusion

Make Halfords a truly inclusive place to work and representative of the customers and communities we serve.

Link to UN SDG

Our Focus

  • Create an inclusive workplace in which all colleagues are able to be themselves at work, feel valued for their contribution and are supported to perform
    their best.
  • Provide equal opportunities for all colleagues.
  • Remove the gender/ethnic/diversity pay gap.
  • Create accessible opportunities and training to improve female representation across our Group, particularly in our garages.

Priorities for the Next 12 Months:

  • Roll out D&I Masterclasses across the Group.
  • Roll out our Colleague Network Groups to grow awareness and build understanding for colleagues across the Group and support cultural change at all levels.
  • Continue to support the industry to understand how the automotive sector can be more attractive for all individuals but specifically those currently
    under-represented in the workforce.

Product, Packaging and Waste Management

Minimise our environmental impact and increase our transparency whilst continuing to pursue sustainability opportunities within our product portfolio.

Link to UN SDG

Our Focus

  • To develop a packaging material strategy that improves environmental impact through increased recyclability, reduction of virgin plastic and responsibly certified card.
  • Reduce packaging tax through plastic reduction.
  • Continue to seek innovative ways to reduce, reuse and recycle core
    waste streams.
  • Ensure that by 2025 all our packaging will be reusable or recyclable.

Priorities for the Next 12 Months:

  • Analyse packaging data responses from suppliers to support changes in legal reporting obligations coming into force January 2023.
  • Continue our virgin plastic reduction programme with emphasis on product categories, including proprietary brands and the cycling categories.
  • Develop environmental Life Cycle Assessment for key product categories.
  • Continue to assess circular processes for core waste streams.