The Board of Headlam is committed to developing the Company’s Environmental, Social and Governance (‘ESG’) strategy and performance in order to i) increase the Company’s resilience in the medium and long term by identifying risks and opportunities relating to ESG issues; ii) reduce its contribution to Greenhouse Gas (‘GHG’) emissions and climate change; and iii) reduce the possibility of ESG-related increases in cost of capital.
The Company has and is continuing to effectively address many key ESG issues, as detailed below and in the following sections. In order to set the foundations for a more structured and concerted approach, and support the development of a comprehensive sustainability strategy, the Company has undertaken and published for the first time a Materiality Assessment (see page 38 of the 2020 Annual Report). This Materiality Assessment, prepared in conjunction with a specialist ESG consultancy and following engagement with representatives from internal and external stakeholder groups, has identified the Company’s significant ESG-related risks and opportunities and will form the basis for a new ESG Strategy Report to be published in May 2021. The Report will detail the Company’s approach to addressing these risks and opportunities, in addition to disclosing a set of KPIs and metrics to allow measurement of progress in this regard.
The Company takes its role as a responsible business seriously, and is already engaged in addressing many of the individual risks identified in the Materiality Assessment. These include the following:
At the same time as the publication of the ESG Strategy Report, the Company will additionally disclose its Scope 3 emissions for the first time in accordance with best practice. This process will support the Company in accelerating its work with suppliers to improve supply chain efficiencies and promote more sustainable products. The Company will also be reporting in alignment with the TCFD (‘Task Force on Climate-related Financial Disclosures’) recommendations in its next Annual Report and Accounts for the financial year ending 31 December 2021.
The Non-Executive Chairman is accountable for overseeing ESG strategy, and the Board has oversight of ESG strategy and performance through ESG (and its related areas including People, Environment, Governance, and Health and Safety) being regular / standing agenda items at Board Meetings. The Company retains the services of two specialist consultancies to support the work in relation to ESG strategy and energy data collation and verification, and who work alongside a member of the Executive Team who is the day-to-day overseer of ESG reporting.