Sustainability Sustainability metrics at a glance CARBON REDUCTION – Better for the planet REDUCING GHG EMISSIONS PAGE 44 WASTE MANAGEMENT PAGE 46 GHG reduction targets Operational waste reduction 10-year greenhouse gas reduction targets set, aligned to • 98% diversion from landfill for all operational waste in FY22. a 1.5°C pathway. • 80% of operational waste to be recycled over the medium term. Scope 1 (direct emissions in operations) • Reduce emissions by 50% in absolute terms by NEW Operational waste recycled FY30 (using FY19 as a baseline). % • 8% decreasein natural gas emissions in FY22 NEW (using FY19 as a baseline). 79 76 78 80 75 • Reduce company car fleet emissions by 2% each year to FY25. Scope 2 commitment (purchased energy) • Continue to purchase 100% renewable electricity. 2017 2018 2019 2020 2021 • Maintain like-for-like electricity consumption at or below FY19 levels. Diversion from landfill % Carbon intensity GROUP KPI 95 96 97 96 • Reduce tCO oup revenue (Scopes 1 92 2e/£1m Gr and 2) year on year, in line with our 2030 target (see page 33). Scope 3 (supply chain emissions) • Reduce emissions by 50% in absolute terms by NEW FY30 (using FY19 as a baseline). 2017 2018 2019 2020 2021 METRICS RELATED TO SUSTAINABILITY ACTIVITIES AND POLICIES During FY21, as we developed our sustainability objectives, The 17 Sustainable Development Goals (‘SDGs’), created by we set ourselves additional targets and metrics, including the United Nations in 2015, are designed to improve health our long-term greenhouse gas emissions targets, packaging and education, reduce inequality, and spur economic growth reduction and circular economy targets. We have also – while tackling climate change and working to preserve our reviewed our targets on key materials sourcing and made oceans and forests. Companies worldwide have a role to some of them more ambitious. We included sustainability play in achieving these objectives. In the pages that follow metrics in our LTIP for the first time, which is why some of we indicate where our sustainability work supports these the targets go to FY24. As we move towards full disclosure recognised goals. under the Task Force on Climate-related Financial Disclosures (TCFD) and develop our ambitions, we expect to augment COMMITMENT TO SCIENCE BASED TARGETS these targets. INITIATIVE PERFORMANCE The Business Ambition for 1.5°C campaign enables Commentary on performance against metrics which were companies to set robust emissions reduction targets at the in force throughout FY21 can be found on the indicated pace and scale required by climate science. Companies pages. During FY20 and FY21, performance against many committed to Business Ambition for 1.5°C receive targets was impacted (in some cases positively and in others independent validation of their targets from the Science negatively)b store closurey s, social distancing restrictions Based Targets initiative (SBTi) and become part of the UN and abnormal travel patterns as a result of Covid-19. Climate Champions’ Race to Zero. In September 2021, Dunelm committed to along-term target to reach net-zero emissions by no later than 2050, backed up by interim ALL GROUP POLICIES ARE AVAILABLE ON OUR science-based targets across the entire value chain, and will CORPORATE WEBSITE, CORPORATE.DUNELM.COM set verifiable science-based targets through the SBTi, which independently assesses corporate emissions reduction targets in line with what climate science says is needed to meet the goals of the Paris Agreement. Source: SBTi 42 DUNELM GROUP PLCANNUAL REPORT & ACCOUNTS 2021