Published November 4, 2021
Four goals reflect the company’s ambition to lead the global industrial sector as a responsible, sustainable, and inclusive business
LONDON, UK, 4 November 2021 – Electrocomponents plc (LSE: ECM), a global omni-channel provider of product and service solutions and parent company of Synovos, today announced For a better world, the group’s comprehensive and robust 2030 Environmental, Social and Governance (ESG) action plan to support a more sustainable and inclusive world.
Electrocomponents’ ESG action plan is integrated within the company’s Destination 2025 strategy, supporting its vision to be first choice for stakeholders, creating profitable growth and reflecting its ambition to lead the global industrial sector as a truly responsible, sustainable, and inclusive business. The plan is comprised of four ambitious global goals:
Championing education and innovation
Empowering our people
Doing business responsibly
Developing sustainable operations and product and service solutions to reduce environmental impacts and tackle climate change. The Group has committed to reach net zero greenhouse gas emissions across its global operations by 2030 and across the wider value chain by 2050. It has set science-based targets for Scope 1,2 and 3 and has committed to the Science Based Target initiative (SBTi).
Building skills and fostering innovative solutions with 1.5 million young engineers and innovators. This includes engaging the company’s DesignSpark community to support the development of sustainable solutions that improve lives.
Enabling our people to reach their full potential and thrive in a safe, inclusive, and dynamic culture. This includes working towards 40% of the company’s leaders being women and 25% being ethnically diverse.
Ensuring the highest ethical and environmental standards throughout the business and global value chain by introducing ESG objectives to be embedded in employee rewards, supplier objectives and a new sustainability-linked loan.
Lindsley Ruth, Chief Executive Officer at Electrocomponents, commented: “Electrocomponents has been on a journey to establish and strengthen our ESG approach for a sustainable future. Today, we are proud to take the next steps and launch our 2030 ESG action plan: For a better world. This is an integral part of our Destination 2025 strategy and beyond, and we see the opportunity to leverage our global scale, product and service solutions and differentiated offer to grow stronger, advance sustainability and improve lives. We believe that having a strong ESG action plan is critical for us to become a truly great company.”
Building upon a strong ESG foundation
The goals announced today build upon the strong progress already made. Key achievements to date include:
- Carbon: 62% cut in CO2 emissions from premises energy usage since 2014/15
- Energy: 67% of electricity usage from renewable sources in 2020/21
- Waste: 76% of waste recycled in 2020/21
- Diversity: 44% Board members are female including the Chair
These achievements have been recognised externally shown by high ESG ratings, including:
- CDP 2020 score: A- leadership category
- EcoVadis: Gold
- MSCI: A
- Sustainalytics: negligible risk (6.2), 10/13,494 (all companies), 3/540 (sector)
To drive progress towards achieving the ESG goals, Electrocomponents has established a new ESG Leadership Committee overseen by Lindsley Ruth, CEO. The Committee has four members from the Senior Management Team, plus the VP of Social Responsibility and Sustainability, Andrea Barrett. The Board and Senior Management Team have full oversight of the Group’s ESG approach and performance.
Four global goals by 2030 supported by 15 actions
To drive the delivery of each goal, clear actions have been identified to achieve by 2029-20/30 from a 2019-2020 baseline, unless otherwise stated:
Developing sustainable operations and product and service solutions to help reduce environmental impacts and tackle climate change.
- Be net zero with a science-based target to reduce absolute emissions from our own operations by 75%
- Make our packaging more sustainable: reduce intensity by 30%, with 100% of packaging widely reusable, recyclable, or compostable and made with 50% recycled content
- Reduce, reuse, and recycle our waste: reduce intensity by 50%, recycle >95% and achieve zero waste to landfill in our direct operations
Work with our supplier and customer partners towards a net zero global value chain by 2050:
- Engage 65% of our suppliers by spend to set science-based targets by 2025
- Reduce transport emissions by 25% per tonne sold
- Develop innovative and sustainable product and service solutions for all our customers
Championing education and innovation
Building skills and fostering innovative solutions that improve lives.
- Reach one million young people with educational technologies, learning content and skills development to support future engineers and innovators
- Support our social impact partners to develop solutions that improve lives – including supporting The Washing Machine Project to help 100,000 people in need
- Engage with 1.5 million engineers and innovators in creating socially responsible and sustainable solutions
Empowering our people
Creating a safe, inclusive, and dynamic culture in which our people can thrive and grow.
- Ensure our team is reflective of the customers, suppliers, and communities we serve by working towards 40% of our leaders being women and 25% being ethnically diverse
- Achieve and maintain an employee engagement score in the top 10% of high-performing companies
- Aim for zero accidents with our people
- Inspire 50% of colleagues to volunteer to support their communities and build new skills
Doing business responsibly
Taking action to ensure the highest ethical and environmental standards throughout our business and global value chain.
- Evaluate our suppliers against our high ethical and environmental standards. Set ESG objectives for strategic suppliers
- ESG-related targets included within employee rewards programme
We have detailed our ESG action plan – For a better world in a presentation that can be accessed on our website: www.electrocomponents.com/esg.
Electrocomponents plc is a global omni-channel provider of product and service solutions for designers, builders and maintainers of industrial equipment and operations. We stock more than 650,000 industrial and electronic products, sourced from over 2,500 leading suppliers, and provide a wide range of product and service solutions to over 1.2 million industrial customers. With operations in 32 countries, we trade through multiple channels and ship c. 60,000 parcels a day.
We support customers across the product life cycle, whether via innovation and technical support at the design phase, improving time to market and productivity at the build phase, or reducing purchasing costs and optimising inventory in the maintenance phase. We offer our customers tailored product and service propositions that are essential for the successful operation of their businesses and help them save time and money.
Electrocomponents plc is listed on the London Stock Exchange and in the year ended 31 March 2021 reported revenue of £2.0 billion. Electrocomponents plc has nine operating brands: RS Components, Allied Electronics & Automation, RS PRO, OKdo, DesignSpark, IESA, Synovos, Needlers and Liscombe.
For more information, please visit www.electrocomponents.com.
Purchased by Electrocomponents plc., in 2021, Synovos is a leading provider of technology-enabled global supply chain management services. Our integrated supply programs, built on industry-leading technology, drive increased productivity, profitability, and competitiveness. Our MRO solutions enable companies, manufacturers, large institutions, and others to streamline MRO / indirect materials management, while improving overall maintenance effectiveness and equipment reliability. Based in the U.S., Synovos provides services globally with locations in Puerto Rico, Canada, Mexico, Singapore, and Europe.
Notes to Editor
About The Washing Machine Project
The Washing Machine Project is a registered social enterprise dedicated to designing, developing, and distributing low-cost, water-saving, manual washing machines to provide displaced and low-income people with an alternative to handwashing clothes. The Washing Machine Project is supported by The Washing Machine Project Foundation which is a registered charity in England & Wales (No.1193480).
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