Climate-related Financial Disclosures TCFD

Climate change continues to represent a material risk throughout our supply chains and presents ongoing risks and opportunities to some of our businesses, some of which we have been working on for many years. We remain committed to taking action and supporting policies aligned with the goals of the 2015 Paris Climate Agreement to limit the rise in global temperatures to well below 2° C above pre-industrial levels, and to pursue efforts to limit the temperature increase even further to 1.5° C.

We recognise our role in working towards a low-carbon economy. We have developed last year’s disclosure to highlight actions we have taken in the current year and describe transition plans for two of our largest businesses.

In our diversified Group, climate-related targets are set by our businesses based on their material risks and what is relevant and achievable for them. ABF Sugar, Primark and Twinings remain our most material businesses, comprising 78% of Group adjusted operating profit (2022 – 81%) and 72% of Scope 1 and 2 greenhouse gas (‘GHG’) emissions (2022 – 70%), mainly from ABF Sugar and Twinings. Primark’s GHG emissions arise predominantly in Scope 3, which accounts for 98% of Primark’s total GHG emissions. See pages 52 and 53 for the detailed disclosure.

Our most material businesses each have their own emission reduction targets. These are:

• ABF Sugar – a 30% absolute reduction in Scope 1 and 2 emissions by 2030 (baseline: 2018) 
• Primark – a 50% absolute reduction in emissions across the value chain by 2030 (baseline: 2018

Other Group businesses have identified their own emission reduction targets or are in the process of doing so. Further information can be found on our website

We are committed to the aim of reaching net zero by 2050, but this cannot be achieved by us in isolation. There is a need for systemic change throughout the value chain, including a redesign of national energy strategies and policies.