Responsible governance

Environmental stewardship is fundamental to the long‑term resilience of our business. We recognise that addressing climate change and nature‑related issues matters to our clients, as it supports long‑term value creation, strengthens decision‑making and helps manage risks.

Operational GHG emissions

Our total location‑based greenhouse gas emissions in 2025 were 22,640 tCO2e, representing a significant decrease from 36,813 tCO2e in 2024. This reduction was primarily driven by lower Scope 3 emissions following a one‑off peak in capital goods emissions in 2024.

Analysis: Purchased goods and services

Emissions from purchased goods and services decreased in 2025, however, this category still remains the largest source of emissions across the Group, accounting for 68% of total location‑based emissions. The reduction in 2025 reflects a lower overall spend compared with 2024, particularly in relation to professional and business services. Over the long term, emissions associated with this category have grown more slowly than spend, reflecting a shift toward spend on services with lower emissions intensities, such as technology and consultancy services.

Analysis: Capital goods

Emissions from capital goods reduced significantly in 2025. In the prior year, emissions from this category were elevated due to substantial investment in office fit‑outs and refurbishments. While capital investment in fit‑outs and technology upgrades continued during 2025, activity levels were significantly lower than in 2024, resulting in a much smaller contribution from capital goods emissions.

Business travel

Business travel emissions remained broadly consistent with 2024, with 1,533 tCO2e in 2025 (2024: 1,564 tCO2e). Total distance travelled by air and rail increased during 2025, reflecting an increase in in‑person activity, mainly domestically. This was partly balanced by reduced car travel and a lower headcount in 2025, resulting in relatively stable overall emissions from business travel.

Purchased electricity

Location‑based emissions from purchased electricity decreased in 2025. The reduction reflects lower consumption across the estate, alongside the ongoing decarbonisation of electricity generation in the UK. Market‑based emissions also reduced significantly during the year, following changes to electricity supply arrangements, with a higher proportion of offices now supplied through renewable energy tariffs. In 2025, 17 sites (out of 24) purchased electricity through a renewable energy tariff, covering 71% of our consumption (kWh).

Carbon finance

Our primary focus remains on reducing greenhouse gas emissions associated with our operations and investments, in line with our climate commitments. Alongside this, we recognise the role that carbon finance can play in supporting climate action beyond our value chain. In line with emerging best practice, including guidance from the SBTi, we use carbon credits as a means of supporting climate mitigation beyond our value chain, rather than as a substitute for emissions reductions. We will continue to review our approach to carbon finance in line with evolving best practice, ensuring transparency and a clear distinction between emissions reduction and voluntary climate contributions.

In 2025, we made a voluntary contribution to climate mitigation beyond our value chain by supporting nature‑based solutions, with a focus on afforestation. As part of this contribution, we purchased and retired 5,600 carbon credits. These credits were retired as a voluntary climate contribution and were not used to offset, neutralise, or otherwise compensate for our Scope 1, 2 or Scope 3 emissions.

Vichada afforestation: Colombia¹

The project’s goal is to restore land degraded by cattle raising through afforestation activities. The new timber plantations support carbon sequestration, increase tree cover, and promote connectivity between ecosystems through re‑planting on degraded land. The project expects to provide more than 200 full‑time employment opportunities (with equal access to women and men) in a zone historically affected by poverty.

Nature

As a Group we are at an early stage of our nature journey. During the year, we published our first Climate Change and Nature Statement, which sets out our approach to understanding and managing nature‑related risks and impacts across the Group. We are also committed to reporting on our approach to nature within the next three years, aligning with appropriate frameworks and drawing on the expertise of our Climate and Nature Working Group and our specialist responsible investment team, Greenbank, to support the development of a Group‑wide approach.

In 2025, Greenbank strengthened the integration of nature and biodiversity within its investment approach. Following this, they also published a series of papers, Integrating Nature – Pathways for Investors, outlining practical guidance and insights for assessing nature‑related risks and opportunities.

Notes:

1. Carbon credits are sourced through Climate Impact Partners and independently verified and issued under the Verra Verified Carbon Standard and the Climate, Community & Biodiversity Standards.