REDUCING OUR CARBON IMPACT

We are committed to operating as a responsible business. Over the past decade, we’ve made strong progress in reducing our carbon impact through focused energy and carbon reduction initiatives. Since our 2018/19 baseline year, we’ve achieved a 14% reduction in gross emissions.

In 2022, our near-term Science-Based Target was approved, committing us to reduce Scope 1 and 2 emissions by 50% by 2031, in line with the 1.5°C pathway to limit the most damaging effects of climate change. Building on this, our long‑term Science‑Based Target was approved in 2024, with a clear commitment to reach net zero emissions by 2045.

Data related to 2025/26 financial year period.

As we continue to grow, demand across our delivery teams and commercial vehicle fleet has increased. This led to a 24% rise in absolute Scope 1 emissions in 2025/26 compared to the previous year, largely due to increased diesel use linked to expanded contract delivery. 

This increase is an anticipated outcome of business growth and reflects our growing role in supporting the UK’s decarbonisation journey. It has been fully factored into our carbon transition planning, ensuring we continue to scale responsibly while progressing toward our net zero goals. 

Importantly, Scope 1 emissions per £m of turnover have reduced by 24% compared with our baseline year. This demonstrates that growth is being achieved more efficiently, supported by sustained improvements in fleet performance and operational management. Transitioning our commercial vehicle fleet to electric vehicles remains a key priority, with significant progress planned for 2026/27. 

Scope 3 emissions reduced by 20% year‑on‑year in 2025/26, driven primarily by lower business travel emissions. This reflects reduced air and rail travel, increased use of electric and hybrid vehicles, and fewer miles travelled overall - clear evidence of lasting behavioural and operational change.

Scope 2 (location based) emissions decreased by 6% compared with the previous year. This was largely due to our Leeds headquarters relocating to offices with stronger ESG credentials and lower energy demand. Alongside the ongoing decarbonisation of the UK electricity grid, these changes support a long-term reduction in Scope 2 emissions.

Overall emissions intensity trends reflect a balance between business growth and improved efficiency. While location-based emissions intensity increased slightly in 2025/26 to 10.0 tCO₂e per £m of turnover (a 3% year‑on‑year increase), this remains 32% lower than our baseline period. On a market‑based basis, emissions intensity was 9.8 tCO₂e per £m of turnover - 4% higher than the prior year, but still a 29% reduction from baseline.

These results highlight sustained long-term progress in reducing emissions intensity, while recognising short‑term increases linked to specific delivery requirements as the business grows.

Our emissions intensity remains low compared with industry benchmarks, making NG Bailey a strong delivery partner for organisations looking to reduce carbon across their supply chains. By delivering work more carbon-efficiently, we help customers achieve their sustainability goals alongside our own.

We’re also working with suppliers to reduce Scope 3 emissions by supporting the adoption of science-based targets aligned to a 1.5°C pathway. Through our Responsibility and Impact strategy, we aim for 75% of suppliers by spend to have science-based targets in place by FY2027.

Because every organisation is at a different stage of its sustainability journey, we provide guidance, tools, training and practical support to help suppliers set and achieve their targets — creating meaningful impact across our industry and supply chain together.