We have done this in order to identify the carbon ‘hotspots’ in our value chain so that we can be sure that we are focusing on the key areas for carbon reduction. Perhaps unsurprisingly, given the construction of the units, the most significant contributor to the embodied carbon in all of the units is steel, and we have instituted a project looking at three aspects of the steel we use: sourcing, design light-weighting and scrap reduction. We will post more on all of these initiatives soon, so watch this space.
Alongside our carbon plan, we have also been working with supply chain partners on an ethical sourcing programme. Using the Ecovadis platform, the first step is to establish our own sustainability rating and identify opportunities to improve it. The system assesses company procedures and processes against a number of areas under the general headings of environment, labour and human rights, ethics, and sustainable procurement.
We have submitted our initial questionnaire response and await the rating from Ecovadis. As well as improving our own performance, future stages in the project will see the assessment process rolled out to key suppliers in high-risk product categories.
We have also been looking at what comes next. The UK is planning to introduce a Carbon Border Adjustment Mechanism in 2027, which will apply an environmental tariff to goods imported from countries with less demanding environmental standards. Whilst we don’t yet know quite what the CBAM will look like, with consultation scheduled for this year, it is likely that it will have features in common with a CBAM introduced by the EU late in 2023. This includes a requirement for importers of highly energy-intensive products, including steel, to declare ‘embedded’ carbon from their manufacturing process. We are starting to map our supply chains in greater detail to be ready for such reporting when the UK CBAM goes live.