Sustainability CARBON REDUCTION Better for the planet Relevant Our commitment UN SDGs We are committed to minimising the impact of our business on the environment. When looking at our own operations, we focus on reducing energy consumption and carbon (CO) emissions and reducing operational2 waste through recycling and careful waste management. In this section we cover progress made in reducing our greenhouse gas (GHG) emissions and our operational waste, and share our first update in line with the Task Force on Climate-related Financial Disclosures (TCFD). Who is responsible Executive Board sponsor: Lauraalso built out a more robust model of our Scope 3 Carr, Chief Financial Officer emissions.In September 2021 we set our 10-year targets for Scope 3 and SBTi approved our full Key Dunelm functionsFinance, Store Development, value chain targets, see page 42. In FY22, we will involved Operations, Procurement, feed our climate change risk assessment results Supply Chain, People Links to principal risksBrand damage into the development of our wider climate change roadmap. Climate change and environment SCOPE 1 (DIRECT) EMISSIONS Regulatory and compliance Emissions from gas heating, air conditioning Links to foundationsSustainable in everything we dounits and refrigerants, and owned and Expert supply chain operated logistics (home delivery network, Awards and Financial Times’ Europe’s fitter vansandcompany cars) recognition Climate Leaders, see page 41 While gas accounts for a smaller part of our energy Key stakeholders/ Colleagues, Store communities,usage than electricity (see below), we continue relationships affected Suppliers to reduce emissions by replacing gas heating Stewardship Committed to supporting the and cooling systems with electric power, and British Retail Consortium’s gaining efficiencies by optimising heating times Climate Action Roadmap to and controls. This forms part of our multi-year achieve net zero by 2040 investment programme to remove gas heating Reducing GHG emissions where practically possible and, where feasible, harmful refrigerants. We have created an asset PATHWAY TO ZERO register of all refrigerant gas types by location and We completed the initial phase of our work with where we replace units, we will ensure that we install Carbon Trust to create a baseline of our emissions new units with new lower global warming potential in all scopes, to forecast emissions growth and (GWP) gases (such as R32). If it is not possible to to assess feasible 10-year targets for reduction remove gas entirely, we seek to decarbonise. in line with the Science Based Targets initiative GHG reduction targets (rather than cost and (SBTi) 1.5°C scenario. This led to setting public functionality alone) are now firmly at the heart commitments and targets (see page 42), including of store refit decisions. supporting British Retail Consortium’s (BRC) In FY21 we replaced gas installations when we Climate Action Roadmap to achieve net zero by refitted our Banbury store and removed the 2040. In FY21 we have initially focused on setting previous occupier’s gas at our Clydebank re-site; our 10-year target and a plan to reduce Scope our new store in Gateshead is gas-free. We also 1 and 2 emissions, as we have more robust data approved a 10-year plan to decarbonise gas and the decisions are within our control. We have heating. 44 DUNELM GROUP PLC ANNUAL REPORT & ACCOUNTS 2021