18 | | Strategic Report | G | F | Annual Report and Accounts 2023 - GBG |
Environmental, Social and Governance
Our ESG Strategy
Our ESG Strategy - Environment, Everyone
-
Ethics - reinforces our commitment to embed a sustainable and ethical approach in everything we do. It represents what makes us unique and gives us the framework to drive action on
the most impactful and important areas.
Our purpose is to build trust in a digital world, we want to be the partner of choice for businesses who want to interact with their customers safely, securely and sustainably. We embody this through the benefits our solutions have, our operations and the way we interact with our partners and team members.
We are proud to continue our support for the United Nations Sustainable Development Goals (SDG's) and have aligned our strategy with the areas we can influence the most.
Our ESG Strategy demonstrates our continued focus on driving improvements across our operations and the solutions we offer. The Environment, Everyone & Ethics pillars provide us with a stakeholder-driven framework to measure, communicate and enhance our impact.
Natalie Gammon, Chair of the ESG Committee
Pillars | Environment |
Focus | Reducing and improving our impact |
on the planet. |
UN SDGs supported
Goal | To achieve our Group strategic |
priorities without impacting the | |
planet for future generations. |
Targets • Net zero by 2045
- Reduce our Scope 1 and 2 emissions by 42% in 10 years
- Run two climate-related scenarios and disclose in our FY24 Annual Report
Everyone
Ensuring that our team has the support and resources they need to grow their skills, build diverse teams and protect our environment and society.
To have a diverse team of the best and most engaged global team members in the industry.
- Exceed 40% female representation by 2026 (global workforce and senior leaders level)
- Continually increase participation in our voluntary diversity data collection
Ethics
Having clear oversight and responsibilities for transparent ESG reporting and effective ESG risk management.
To have the principles, people and policies in place to have a sustainable and ethical approach to everything we do.
- Put the ethical use of data at the heart of everything we do
- Incorporate the role our industry plays in building a better world in our thought leadership
Annual Report and Accounts 2023 - GBG | Strategic Report | G | F | | 19 |
Our approach
During the last year we conducted a materiality assessment to gather input from our global team members, as well as our largest customers and investors, asking what matters most to them and to gain their views on how we should prioritise our approach. We created a long list of potential factors we should consider, with insight from ESG-related frameworks, standards, and guidance, and then narrowed these down to the factors we can have the most impact on and are most relevant to our business.
We asked our key stakeholders to rate each factor by importance to them and by impact on our business's future success. We wanted to consider both internal and external views because we know that every one of our stakeholders contributes to the success of our overall strategy. The scores were amalgamated and the averages were plotted against importance and impact. Please see the top six factors listed below.
Data ethics, privacy and IT security
Human capital development
Business ethics
Inclusion, diversity and equality
Corporate governance
Occupational health and safety and wellbeing
We also collected qualitative comments from participants to get a deeper understanding of our stakeholders' needs. This is why climate change and greenhouse gas emissions, and waste and resource management are also a key priority for us.
We then used this feedback, as well as discussions with our team members, Executive Team and ESG Committee, to create the three pillars of our strategy: Environment, Everyone and Ethics.
How will we deliver on our targets?
We plan to deliver on our strategic targets through our ESG programme, be/sustainable, in the following ways:
Environment
- Procuring renewable energy for our workspaces
- Raising team members' awareness on climate change and the impact of their actions
- Engaging with our value chain to encourage improved measurement and reduction of greenhouse gas emissions
- Using the recommendations of the Taskforce on Climate-related Financial Disclosures to conduct scenario analysis on our business
Everyone
- Embedding our Culture+ initiative within our hiring and development (see page 26 for further details)
- Using mentoring and training to support the gender and ethnicity balance and development of our workforce
- Encouraging diversity data awareness and participation
- Building diversity considerations into our succession and workforce planning
- Creating a purposeful culture where our team members are engaged, recognised and rewarded
Ethics
-
Continuing to embed our approach to putting ethical data considerations
at the heart of our processes, procedures and decisions. Read about our approach to data ethics, privacy and security on pages 30 and 31 - Ensuring that positive ESG outcomes continue to be central to our products and solutions, as well as the way we communicate
Recognition
'A' rating in the MSCI ESG Ratings assessment
Assessed to be at 'Low Risk' of experiencing material financial impacts from ESG factors by Sustainalytics
Winner of the 2023 Gallup Exceptional Workplace Award
We maintained ISO 27001 certification
Continued our membership with the Slave-Free Alliance
93%
of team members recommend GBG as a 'great place to work'
20 | | Strategic Report | G | F | Annual Report and Accounts 2023 - GBG |
Environmental, Social and Governance continued
Stories from our solutions:
RLDatix and GBG combine forces to support accurate and efficient community healthcare
Demand for smart solutions for community healthcare is stronger than ever as the UK continues to face an increasing ageing population. Historically, many healthcare providers have used paper-based services for their clinician scheduling. This method involves an enormous administrative burden, which can be exacerbated by inaccurate data and result in an inefficient approach to scheduling.
Allocate eCommunity, from RLDatix, is an employee scheduling and workforce planning tool for community healthcare providers. Partnering with GBG has provided a solution to the challenge of deploying staff to the correct location, in the most efficient way.
Our location solution verifies and standardises address data in Allocate eCommunity's planning tool to ensure their customers know exactly where their patients are located. This allows healthcare providers to assign the right staff member to the patient, finding the match that fits the location, coupled with the skills needed.
The geocoding solution is then able to accurately measure the distance between locations, enabling the system to show estimated travel time between patients. This means that the schedule can be created to reflect the most effective route between appointments, maximising the time they spend with their patients over time on the road.
Together, Allocate eCommunity and GBG are able to provide digital, real-time information to allow for a more responsive approach to patient needs, improve employee's productivity and experience, and save travel costs.
Environment
Our net zero target
Due to the nature of our business, we have less impact than other organisations but we still seek to protect the environment where we can.
We are delighted to launch our ambition to be net zero by 2045. This ambition includes a near-term target of reducing our Scope 1 and 2 emissions by 42%1 in
10 years2, to align with the latest climate science, and was signed off by our ESG Committee.
We have also delivered on our goal to be carbon neutral in our operations, which we achieved by looking for ways to reduce our Scope 1 and 2 emissions and offsetting the remaining. We invested in several offsetting projects local to our team members, with projects in Australia, Indonesia and the US this year.
We are liaising with the landlords of our leased workspaces to understand whether they are using renewable energy to enable us to release our first market- based Scope 2 measurement, which you can see on page 24. We are in the process of reviewing and consolidating our workspaces, where appropriate, to keep our energy usage as efficient and low as possible and are using renewable energy usage as one of the criteria for new workspace decisions.
Measuring our market-based emissions also allowed us to measure the intensity ratio of our Scope 1 and 2 emissions against our revenue more effectively. Our actions, coupled with the improved measurement, has enabled our intensity ratio to decrease from 1.55 in FY22 (location-based emissions) to 0.96 this year, achieving our target of a 10% reduction by FY25 early3.
We have also increased our team member awareness on environmental-related issues and actions they can take with the creation of our 'be/sustainable hub'. be/ sustainable is how we describe our ESG programme internally, in line with our other employee GBG brands. The hub contains blogs and resources to help develop our team's knowledge and be part of the change needed. We will continue to encourage team behavioural changes to help reduce our emissions.
- Based on the FY22 baseline you can find on page 24, including the former Acuant business and Cloudcheck
- Close of FY32 (ten years from our FY22 baseline)
- The intensity ratio for location-based emissions against revenue for FY23 is 1.31, also achieving our target of a 10% reduction from our FY22 emissions intensity ratio
Annual Report and Accounts 2023 - GBG | Strategic Report | G | F | | 21 |
We have always sought to refurbish and reuse our IT hardware so that it can be used by other team members and therefore reduce waste during its lifespan, as well as donating our used laptops, where possible, to charity.
Our response to the TCFD recommendations
The recommendations of the Task Force on Climate-related Financial Disclosures ('TCFD') create a useful framework for companies to measure and mitigate their climate risk. Although TCFD-aligned reporting is not required of us until FY24, we recognise how crucial the management of climate-related risks and opportunities are and so we have decided to start disclosing this year. We chose to focus on setting the foundations for reporting and embedding our governance and processes. We have, therefore, not run climate-related scenarios this year but plan to do so next year.
We are a global business, with team members, customers, suppliers, and wider stakeholders based across the world.
With rising global temperatures and sea levels and increasing frequency of acute weather events, climate change is a real risk that we are all facing today.
Governance
The Board's oversight of climate-related risks and opportunities
Our Board has overall responsibility for our ESG programme, its activities and targets, which is maintained through regular review of recommendations made by its Committees. Our ESG Committee meets to assess and monitor progress against our ESG strategy, KPIs (which now includes our net zero ambition), and policies. The Committee is scheduled to meet three times a year, where progress, future plans and evolving regulation
is discussed. You can read this year's ESG Committee report on pages 96 to 97. Our Audit & Risk Committee regularly monitors the principal risks and uncertainties identified by our risk assessment processes, along with the strategies developed and the actions we have taken to mitigate them.
Management's role in assessing and managing climate-related risks and opportunities
This year we set up a Business Risk Committee to facilitate Executive focus on the management of our key non- financial risks and issues and make sure that they are being managed in line with Board risk appetite. The Committee is chaired by the Chief Regulation Officer, or Chief Financial Officer in their absence, and is attended by representatives
from governance, risk, HR, finance, and information technology, privacy and security. Going forward, the Committee will review any changes to top climate- related risks and opportunities and make recommendations, as appropriate, to the ESG Committee.
Strategy
Climate-related risks and opportunities identified over the short, medium, and long term
Examples of the risks and opportunities identified are listed below, grouped by the time horizon we expect they will have the most impact. Our short-term timeline reflects the five-year financial forecast model we maintain. We then we chose longer timelines to reflect the long- term nature of climate-related risks and opportunities.
Short term (0-5 years)
- Risk of failure to comply with transitional climate change policy and legislation in all relevant regions, including enhanced emissions reporting, which could cause increased costs, operationally and through the potential for fines
- Risk of failing to take, or being perceived as failing to take, sufficient climate action, which could result in reputational damage causing loss of, and difficulty in attracting, new customers, team members and investors
- Opportunity to continually enhance our approach to business risk through improved understanding of our climate-related risks and opportunities
Medium term (5-10 years)
- Risk of acute weather events causing disruption to our team's abilities to carry out their responsibilities, to our workspaces, equipment and to our supply chain. The impact of this could be disruption to our business operations in affected regions
-
Risk of the introduction of climate-related taxation, such as a carbon tax,
raising costs - Opportunity for improved energy efficiency lowering costs in our operations and supply chain
Long term (10+ years)
- Risk of chronic physical changes causing disruption to our team's ability to carry out their responsibilities (i.e. through climate migration). The impact of this could be an inability to maintain business operations in certain regions, as well as impact on team member wellbeing
- Risk of the need to invest in carbon removals increasing costs
- Opportunity to evolve our solutions in line with changing customer needs and demand
22 | | Strategic Report | G | F | Annual Report and Accounts 2023 - GBG |
Environmental, Social and Governance continued
The impact of climate-related risks and opportunities on our businesses, strategy, and financial planning
Our strategic goal is to be the global leader in digital identity verification and identity fraud. We want to be the partner of choice for businesses who want to interact with their customers safely, securely, and sustainably.
To do this, we need to ensure that our business and our solutions have the ability to withstand climate-related risks and that we can maximise on climate-related opportunities. Our Group strategy is built around six key priorities:
Build markets
Build differentiation
Build once
Customer trust
Team trust Investor trust
By focusing on building differentiation and ensuring we build once, we reduce the need for duplication. Coupled with our 'Cloud-first policy', where we are moving away from physical storage, this helps us to improve the energy efficiency of our activities.
Our ESG Strategy (which you can read about on pages 18 and 19) was created to support the Group strategy in achieving these priorities. We set the goal for the Environment pillar of our ESG Strategy to be 'achieving our Group strategic priorities without impacting the planet for future generations'. This means building within the constraints of the planet's natural resources by reducing and improving our effect on the planet. By doing this, we also build trust with our customers, team members and investors.
We have assessed our climate-related risks and, while we do not view them as financially material to our business at the current time, we are continuing to track and review these as the risks, opportunities and our business evolves.
The resilience of our strategy, taking
into consideration different climate-related scenarios, including 2 degrees or lower
As this is our first year of reporting against the TCFD recommendations, we decided to focus on getting the right oversight and responsibilities in place, embedding climate into our risk management approach and setting our net zero ambition. We are planning to run climate scenarios in FY24 to ensure that we can report in full alignment with the TCFD recommendations.
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
GB Group plc published this content on 21 June 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 July 2023 07:36:01 UTC.