Home delivery network (HDN) fleet Company car fleet We use telematic technology, alongside driver training, to improve driving habits and to lower fuel usage and carbon intensity. As a result of our We are introducing a low-emission electric and hybrid increase in online sales, the volumes handled by company car fleet in FY22, aiming to phase out our fleet have increased and this has led to an other vehicles by 2025, and developing a colleague overall increase in our Scope 1 emissions, although communications plan to encourage take-up. In June 2021, our overall carbon intensity measure, which is we completed the installation of electric vehicle charging linked to sales, has reduced. We have sought to points at our Syston Support Centre. In FY21, company car mitigate our impact by maximising vehicle fill to fleet emissions reduced by 33%, helped by restricted travel reduce the number of deliveries. To meet our long- during lockdowns. term Scope 1 targets, however, we are dependent on advances in vehicle technology and national electric vehicle charging infrastructure, and are working with our logistics partners and BRC SCOPE 3 (SUPPLY CHAIN) EMISSIONS industry working groups to support change and Product (stock) suppliers, non-product stay aware of developments in these areas. (non-stock) and logistics suppliers As is the case for most retailers, most of our carbon SCOPE 2 (INDIRECT) EMISSIONS emissions are generated outside our operational Purchased electricity and reduction in control in Scope 3. The reduction of these emissions electricity consumption; LED lighting represents our greatest opportunity and toughest The vast majority of our Scope 2 GHG emissions challenge. We have worked throughout the year come from electricity consumption. Since 1 April with Carbon Trust and our suppliers to establish 2019 we have switched to Renewable Energy a more robust baseline model for our Scope 3 Guarantees of Origin (REGO)-qualifying electricity emissions, covering major non-stock purchases, sources for all sites where we purchase this directly outsourced logistics and a significant portion of and have committed to doing so (as a minimum) our textiles supply route, which accounts for around until 2030. 50% of our own brand sourcing volumes. This has shown us that over 80% of our Scope 3 emissions Although this reduces our Scope 2 emissions are attributed to the sourcing and manufacture of to zero, we continue to take action to reduce our products. electricity consumption. LED lighting is standard in new installations, and is fitted at99% of our itess. We will continue to work with suppliers to develop To raise internal awareness, we have implemented and verify this model, and to understand and a sustainability induction training module for store- implement the actions that need to be taken to based colleagues, covering energy and waste. reduce them. We also continue to minimise usage through our centralised building management systems Influencing customer and colleagues (BMS). During the year we reduced our like-for-like We are introducing information, products and electricity consumption versus FY19 by 15%; this services (some of which are covered under performance was favourably impacted by Covid. ‘Circular Economy’ on page 55), to support our customers and colleagues in reducing their own ABSOLUTE GHG EMISSIONS FROM OUR emissions and also support our commitment to net OWN OPERATIONS, COE TONNES zero and to Textiles 2030. 2 FY19 FY21 Moving forward: focus on GHG emissions Location- Location- Market- based based based • Develop climate change roadmap to achieve Scope 1 7,260 7,936 7,936 new 10-year targets. Scope 2 11,002 7,866 245 • Refine and develop our climate change risk Total 18,262 15,802 8,181 assessment in specific hotspot areas. • Refine Scope 3 emissions model and data Note: FY21 emissions are compared against our FY19 collection. baseline emissions level. Market-based Scope 2 • Build carbon considerations into more business emissions reflect the purchase of REGO-qualifying decision-making processes. electricity. Our SECR disclosure and further commentary on our GHG emissions can be found on page 176. DUNELM GROUP PLCANNUAL REPORT & ACCOUNTS 2021 45 STRATEGIC REPORT GOVERNANCEFINANCIAL STATEMENTSOTHER INFORMATION