Envolve Infrastructure is committed to achieving Net Zero emissions by 2040 for all Scope 1 and 2 emissions and those Scope 3 emissions under the organisation’s direct control.
We measure and report on the carbon impact of our business activities. This data is being used to inform our annual carbon reduction plan, which is in its second year of implementation. Our annual business plan embodies a range of business targets to improve our carbon performance.
Baseline emissions are a record of the greenhouse gases that have been produced in the past and were produced prior to the introduction of any strategies to reduce emissions. Baseline emissions are the reference point against which emissions reduction can be measured.
In FY 20/21, Envolve had limited carbon reduction initiatives. We were at the beginning of our carbon reduction journey, with the first initiatives coming into force late in FY 21/22. Our carbon data recording included all Scope 1 and 2 emissions and a limited subset of Scope 3 emissions. Specifically, these were grey fleet and hire cars on company business.
After successfully implementing several carbon reduction initiatives in subsequent years, we have determined that FY 20/21 is the most appropriate year to benchmark initiatives against, as this will demonstrate their effectiveness.
Initiatives include:
This baseline includes Scope 1 and Scope 2 emissions. It also includes a limited subset of the Scope 3 emissions required by PPN6/21 based on data available at the time (PPN stands for procurement policy note which is the name of the requirements set by Government).
The Scope 3 emissions reported in the baseline are:
No other scope 3 emissions were recorded, monitored or available to Envolve. In particular:
Baseline Year Emissions: FY 20/21 |
|
Emissions |
Total (TCO2e) |
| Scope 1 | 2,984 |
| Scope 2 | 22 |
| Scope 3 | 247 |
| Total Emissions | 3,253 |
| TCO2e per £100k of revenue (£33m) | 10T |
Previous Completed Reporting Period: FY 23/24 |
|
| Emissions | Total (tCO2e) |
| Scope 1 | 4,503 |
| Scope 2 | 18 |
| Scope 3 | 175 |
| Total Emissions | 4,696 |
| TCO2e per £100k of revenue (£92m) | 5T |
Latest Reporting Period: FY 24/25 (PROVISIONAL – June-Sep Forecast) |
|
Emissions |
Total (tCO2e) |
| Scope 1 | 2,310 |
| Scope 2 | 30 |
| Scope 3 | 687 |
| Total Emissions | 3,028 (-36%) |
| TCO2e per £100k of revenue (£73m) | 4.14T |
Although we are committed to reducing absolute emissions, Envolve has experienced significant growth over the past 36 months. Unfortunately, this increased our total emissions for the previously completed reporting period (FY 23/24).
During the latest reporting period of FY 24/25, we are performing on target to achieve a significant 36% reduction in carbon emissions, clearly demonstrating the effectiveness of our carbon reduction initiatives, highlighting that our efforts are not only yielding strong environmental results but also improving our carbon intensity which decreased from 5T-4T per £100k of revenue which demonstrated the effectiveness of our initiatives over and above the minor decrease in turnover. The substantial emissions reduction relative to turnover underscores our commitment to sustainability and the resilience of our strategy.
Our climate sustainability targets, as set out in our 2025/26 business plan are:
Considering the targets set in our annual business plan and the implementation of our ESG strategy for FY25/26, we have made the following assumptions in calculating our projections for FY 25/26:
Projections for FY 25/26 |
|
Emissions |
Total (tCO2e) |
| Scope 1 | 1,735 |
| Scope 2 | 33 |
| Scope 3 | 753 |
| Total Emissions | 2,522 |
| TCO2e per £100k of revenue (£80m) | 4T |
Our projections predict a 17% reduction in C02 emissions from FY 24/25 to FY 25/26, in addition to the 35% predicted reduction from the previous year FY23/24, impacted mainly by the switch to HVO across our operations, the switch to green energy tariffs and the increasing number of hybrid/electric vehicles on the direct/grey fleet. This represents a total 47% reduction from FY 23/24 to FY 24/25.
We are likely to significantly impact our Scope 3 emissions towards the end of FY 25/26 as we increase our Scope 3 reporting to include up to 90% by spend by the end of FY 25/26.
To achieve Net Zero 2040 (excluding additional measures such as off-setting), if we continue our current trajectory of circa 20% reduction per annum from our projected emissions of 2,522 TCO2e in FY 25/26. We will have reduced our carbon emissions by 96% by FY 39/40. However, this would involve a significant adoption of HVO across the wider fleet and accelerating the transition to lower-carbon vehicles, plant, and machinery, given that Scope 1 emissions account for 76% of our total emissions. It does not consider any increase in business operations or the impact of increased Scope 3 related emission data.
Based on the above, we project that carbon emissions could decrease by 60% over the next five years.
The SBTI and PPN 06/21 both require a commitment to reduce absolute carbon emissions. We are now concentrating on reducing absolute emissions regardless of the organisation’s size. We will also ensure we capture all data required by the SBTI and PPN06/21, particularly relevant Scope 3 data. Therefore, we propose to undertake the following:
Data Monitoring and Reporting: Our approach to carbon reduction and data monitoring will align with our commitment to the SBTI and PPN06/21. We will not benchmark carbon reduction against turnover/headcount/output but commit to absolute reduction. We will expand our formal monitoring program for Scope 3 emissions under our direct control.
Scope 3 Emission Data: We have committed to a programme of engagement with the Supply Chain Sustainability School and our supply chain to report 50% of our supply chain emissions by September ’25, increasing this to 90% by September ’26.
Office Power Supply: In FY 25/26, we commit to transitioning all controlled office power supplies to a green energy tariff. One remaining tariff is up for renewal during FY 25/26, which will transition to green tariffs. During FY 23/24, the business made a strategic purchase of a new Head Office facility in South Wales, adjacent to the existing Envolve Head Office— ‘The Barn’. During the office’s development, we are installing solar panels to provide our Head Office with 100% self-power generation capability.
Roll-Out of Hydrotreated Vegetable Oil (HVO): Our trial of HVO fuel was so successful that in FY2024/25, we implemented a company-wide directive to replace gas oil (diesel) with HVO fuel across the board for all site power/plant and HGVs. This has been established via a nationwide HVO supply framework. Historically HVO take-up has been subject to constraints of supply availability and high fluctuations in price, reducing confidence in availability and practical application. Our framework supply agreement mitigates historic constraints, aiming to guarantee confidence in supply availability and price guarantee for seamless take up across the business.
Roll-Out Grid, Battery Storage Units (BSU) and Solar Power Generation: Our trial of battery storage units/solar power units was so successful that in FY2025/26, we are implementing a company-wide initiative to replace traditional fuel-powered generators with grid connections (where practical on a green tariff) or BSU/Solar generators. Although HVO provides an up to 90% reduction in related C02 emissions for fuel-powered generators, in our mission to reduce absolute emissions, the use of renewable sources to power our sites/projects will be investigated and validated in the first place. We have further reinforced this ambition by ceasing investment in traditional site power generators in our owned and operate fleet.
Decarbonising our Commercial Fleet: Carbon emissions from our fleet account for 40% of our Scope 1 emissions. Using vehicle telemetry, we have extensively analysed our driver profiles and cannot switch en-masse to electric vehicles. This is due to the limited range offered by existing electric commercial vehicles compared to our vehicle usage. As new technologies emerge, we procure the most technologically and environmentally advanced models (in FY 23/24, we renewed our HGV fleet to brand new Euro 6 models) and continue to work with manufacturers and lease providers to investigate and trial emerging vehicle technology when available. However at the tail end of FY 24/25 we have started an electric van trial to varying driver profiles within the business, once data has been collected and analysed we will utilise our telemetry data to pinpoint suitable users in the wider roll out of electric vans.
Hydrogen-powered trucks are a promising alternative, especially for medium—and long-distance road transportation. There are two options: the first, in which a fuel cell uses hydrogen to generate electricity to drive the electric motor, and the second, in which hydrogen is used directly as fuel for the hydrogen engine. In both cases, CO2 can be reduced by 100%. As road trials are undertaken and the initial take-up of hydrogen HGVs are trialled in the UK, we will continue to investigate the practical application of hydrogen vehicles in our fleet.
HGV’s are generally on 5-year lease cycles. Therefore, we see this as a long-term objective over the next 10-15 years.
Decarbonising our Car Fleet: We have several electric vehicles within the driver fleet, which is increasing year on year. In FY 23/24, we implemented a revised company car scheme, capping vehicle emissions to 130gCO2/km with a hybrid/electric alternative to every model in every band. Due to the growing burden of BIK payments on company vehicles and the existing BIK savings to company car drivers, as we transition to hybrid/electric alternatives incentivising drivers the most, this ‘win-win’ scenario strongly supports the transition of the fleet to a low/decarbonised fleet. This has resulted in a 60% reduction (from 109g-45g) in the average g/C02/km across the fleet during FY 24/25 – well ahead of the 5% reduction target.
We will continue transitioning all company cars to electric vehicles where applicable on renewal. Since cars are generally on 4-year lease cycles, we see this as a medium/long-term objective over the next 10 years (2 car cycles).
Grey Fleet: During 2023/24, we introduced a new and incentivised car allowance offering, incentivising drivers to choose more efficient & electric car variants with the option of a business-funded car charger at their home location, capping emissions on renewal to 130gCO2/km.
Although we have already seen a reduction in the grey fleet’s average CO2/km, we rely on individuals changing vehicles at their own pace; therefore, we anticipate a more gradual transition to lower-carbon vehicles over the next 10 years, following the trend of the direct company car fleet. During FY 24/25, this strategy reduced the average g/C02/km by 13% (135g-118g) – well ahead of the 5% reduction target
Offsetting: Envolve’s carbon reduction plan does not currently consider offsetting as a strategy to reach Net Zero. Further investigation into offsetting and alternative ways to reduce carbon is required before a decision on whether to include offsetting as part of the strategy is agreed upon.
The UK Government’s strategy to reduce emissions to net zero by 2050 requires action by all emission producers. We understand the role we must play as a business in acting to address the emissions we produce, and, as such, we are committed to achieving net zero ahead of the Government’s target date and, in any case, no later than 2040.
Our assessment of the emissions we produced in 2021/22 provided us with a benchmark with which to measure the progress we are making in reducing our environmental impact. The 2021/22 data highlighted that our commercial vehicles, and our use of gas oil, were responsible for most of the emissions we produced.
As a result of this, during the year, we will focus on reducing our emissions in these areas. We will introduce initiatives to trial the use of alternative, cleaner energy sources to power our sites and the procurement of electrical commercial vehicles across our business. We also introduced several climate targets which assist us in aligning our business with the Group’s overall climate ambitions. These targets ensure we focus their carbon reduction efforts on those areas where we can make the largest impact.
