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Environment

The Company has a substantial understanding of the impact its day-to-day operations, and the industry of which it is a part, has on the environment and is committed to mitigating its direct impact as well as working as part of the overall floorcoverings industry to reduce the industry’s environmental footprint.

Headlam’s Chief Executive is nominated as the individual who champions environmental performance at Board level, and the Company is committed to pursuing and promoting recycling, energy saving actions and ‘good energy behaviour’ across its business and routinely monitoring and reviewing its energy usage, carbon emissions and energy saving actions to improve environmental performance.

Mitigating direct impact

Headlam’s direct impact on the environment arises predominately from transport emissions, with its transport activities accounting for approximately 90% of its total annual energy consumption. Actions being undertaken to reduce its transport related emissions include:

  • Fleet Operator Recognition Scheme (‘FORS’), a voluntary accreditation scheme which promotes best practice for commercial vehicle operators including in the area of environmental impact, with further of the Company’s businesses applying for accreditation in 2020;
  • All commercial vehicles being compliant with the latest Euro 6 emission standards;
  • Hybrid and lower CO2 emission vehicles available in all company car categories, with a commitment to further reviewing the car emissions policy;
  • Trialling and roll-out of more effective delivery fleet utilisation under the Company’s ongoing operational improvement programme, with less miles travelled per delivery and an attendant reduction in fuel consumption and air pollution.

In addition to reducing transport emissions, Headlam is focused on reducing its direct environmental impact through:

  • Monitoring and reducing where possible its water consumption which is primarily used in the washing of commercial vehicles (water consumption of 38,431 cubic metres in 2019 (2018: 42,246), some site data annualised);
  • Recycling the waste arising from its operations, predominately plastic packaging, cardboard poles and wooden pallets;
  • Utilising recycled protective packaging across its UK operations;
  • Sending zero floorcovering products or plastic packaging waste to landfill;
  • Promoting energy saving activities and actions in its office and warehouse environments;
  • Incorporating energy efficient technologies and equipment across its office and warehouse portfolio, with the new regional distribution centre currently being constructed on a brownfield site in Ipswich incorporating photovoltaic panels and LED lighting;
  • Conducting its operations as efficiently as possible in order to reduce energy consumption, with the Company’s operational improvement programme being a key driver of this;
  • Maintaining, and annually reviewing, a groupwide Environmental Policy that is applicable to all employees; and
  • Developing KPIs and intensity ratios to better measure performance in reducing energy usage and carbon emissions, with the KPI section on page 32 of the 2019 Annual Report detailing two environmentally-related KPIs.

Working as part of the industry to reduce overall impact

Headlam is committed to working as part of the overall floorcoverings industry to reduce the industry’s environmental footprint. Actions and commitments in this area include:

  • Working in partnership with manufacturers to support the development, production and marketing of sustainable and recyclable products into the marketplace;
  • Growing a sustainable product offering for its customer base; and
  • Supporting actions focused on the recycling of industry waste and diversion from landfill, including through being a core funder of Carpet Recycling UK and member of Recofloor.

Disclosure and SECR

As a demonstration of its commitment to the highest levels of disclosure and to the measurement and implementation of actions to reduce energy usage and carbon emissions, Headlam has elected to voluntarily comply a year early with the UK government’s new Streamlined Energy & Carbon Reporting (‘SECR’) scheme which applies to financial years starting on or after 1 April 2019, and therefore would not have applied until the Company’s 2020 Annual Report and Accounts. Additionally, during 2019 the Company engaged with an external energy data collation and verification company on a three-year basis to assist in identifying and implementing additional energy saving actions. This same company assisted Headlam with its mandatory Energy Savings Opportunity Scheme 2 (‘ESOS 2’) external audit and assessment completed in the year, with the Company already taking action on some of the energy saving recommendations provided, including in the area of ‘good energy behaviours’.

 

 

The detailed SECR Disclosure is given on page 103 of the 2019 Annual Report, and should be read in conjunction with this Environment section.

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