Progress on ESG initiatives
RNS REACH
28 July 2021
Smart Metering Systems plc
Progress on ESG initiatives
Smart Metering Systems plc (AIM: "SMS", "the Group"), the fully integrated energy infrastructure company owning and managing meter assets, energy data, grid-scale batteries and other carbon reduction ("CaRe") assets, today provides an update on the progress made against its Environmental, Social and Governance ("ESG") initiatives during the six months to 30 June 2021 ("H1 2021").
The safety of our people is integral to SMS operations and over the last 18 months this has never been more critical. We are incredibly proud of the dedication and commitment shown by our colleagues to help transition the UK towards a net zero economy throughout this challenging period.
ESG leadership is at the core of our business as we seek to realise our purpose, "to serve our customers and protect our environment". We are dedicated to helping our customers reduce their carbon emissions and committed to achieving net zero in our own business by 2030. SMS's CaRe products and services are critical to achieving a cleaner and resilient future energy system.
During H1 2021, we continued to make strong progress in each aspect of 'E', 'S' and 'G':
Environmental:
In 2020, SMS announced its ambitious plan to be net zero (Scope 1 and 2) by 2030, and carbon negative beyond. We also provided a roadmap to achieving those targets and published our inaugural ESG report ( Sustainability report ). The report outlines our ESG plans, objectives and progress, and is our flagship ESG disclosure.
We are also pleased to provide an update on the progress made during the first half of 2021:
· In the first half of 2021 our Scope 1 and Scope 2 emissions fell by 31% when compared with the first half of 2019. Although during the period emissions rose 17% compared to H1 2020, this comparison is distorted by the impact of Covid-19.
· Carbon emissions avoided through the use of our products and services increased 74% in H1 2021, compared to H1 2020, resulting in an 11x positive impact versus our carbon footprint (H1 2020 & H1 2019: 8x).
· SMS's vehicle fleet represented 88% of the Group's total carbon emissions in H1 2021 with the remaining 12% originating from buildings. The Group continued actively to address each of these two areas to reduce our carbon emissions footprint:
o More than 90% of company cars were transitioned to plug-in hybrid
o Commenced replacement of our van fleet to plug-in hybrid. The real-world performance of our trial hybrids will be evaluated ahead of a wider, full fleet replacement with significant proportion of the Group's fleet expected to be either plug-in hybrid or fully electric over the course of 2022 and 2023.
o Office upgrades commenced focused on renewable power and energy efficiency, including air source heat pumps for water heating and solar PV for renewable electricity.
Social:
SMS continued to build on its established social and community initiatives, whilst launching a series of new initiatives during H1 2021.
· SMS is now a signatory of the Business in the Community Race at Work Charter, which means the Group is taking practical steps to ensure that its workplaces are tackling barriers that ethnic minority people face in recruitment and progression.
· The Group has become a Level 3 Disability Confident Leader, the highest level possible. There are six million people of working age in the UK with a disability and achieving Disability Confident Leader Status will assist SMS in supporting that talent pool.
· SMS also launched several initiatives to support local communities and biodiversity efforts whilst constructing grid-scale battery projects. For instance, on the Barnsley site, the Group has commenced community engagement and also planting new hedgerows and trees. On the Burwell site, SMS is sponsoring a local football team.
Health and Safety:
The health and safety of our employees, customers and partners is of utmost importance to SMS. We have invested significantly in Safety, Health, Environmental and Quality ("SHEQ") over the past years which is making a very effective contribution to the business. "SHEQ" ownership across the business is at a high level and is driving a culture of engagement, bringing ideas for improvements across the organisation, including:
· YTD zero reportable injuries and the Accident Frequency Rate (AFR) per 100,000 hours worked is 0.05 which is close to the target of 0.04.
· Lost Time Injury Frequency Rate (LTIFR) per 100,000 hours worked is 0.14 which is ahead of target 0.15.
Governance:
The Group continued to place appropriate resources, targets, monitoring and governance to fulfil its obligations to shareholders, employees, customers and wider society. We have established a dedicated board subcommittee for Health, Safety, & Sustainability headed by our Chair Miriam Greenwood, ensuring that ESG is embedded into every level of decision making. This committee sits alongside our other Board committees of Audit, Remuneration and IT. Our commitment to strong corporate governance was reflected in us receiving the highest scoring range from MSCI when compared with our global peers in 2020.
· With our completion of the annual CDP submission in July, we align with the key requirements under TCFD (Taskforce for Climate-related Financial Disclosure) of climate-related governance, strategy, risk management, metrics and targets.
· The Group successfully concluded the ISO50001 external audit process and is currently undergoing an external audit on Integrated Management System (IMS). This process covers ISO9001 in Quality Management System (QMS), ISO14001 Environmental Management System (EMS) and ISO45001 Occupational health and safety management systems.
Ratings and certifications:
SMS has been recognised with the London Stock Exchange's Green Economy Mark (the "Mark") every year since it was introduced in 2019. The Mark identifies London-listed companies and funds that generate more than 50% of total annual revenues from products and services that contribute to the global environmental objectives, such as climate change mitigation and adaptations, waste and pollution reduction, and the circular economy.
The Group also continued its engagement with the existing and new ESG rating agencies and made positive progress in overall scoring. MSCI's weighted average performance improved from 6.3 to 6.6 (on scale of 10) and Sustainalytics risks rating reduced from 27.8 to 26.6 (on scale of 0-50).
For further details, please contact:
Dilip Kejriwal Charlotte Gregory
Investor relations Head of Sustainability
dkejriwal@sms-plc.com Charlotte.Gregory@sms-plc.com
Notes to Editors
Smart Metering Systems plc (www.sms-plc.com) is the fully integrated energy infrastructure company owning and managing meter assets, energy data, grid-scale batteries and other carbon reduction (CaRe) assets. The Group manages and optimises these assets through its in-house technology and data analytical platform "METIS".
Established in 1995, SMS provides a full end-to-end service, from funding and installation to management and maintenance, with a highly skilled workforce, deep engineering expertise and well-established industrial partnerships.
SMS is leading the low carbon, smart energy revolution in the UK and is committed to reducing its own carbon emissions to net zero by 2030. SMS has been recognised with the London Stock Exchange's Green Economy Mark every year since it was introduced in 2019.
SMS plc is headquartered in Glasgow with a national presence across twelve UK locations.
SMS's shares are listed on AIM.
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