TP’s sustainability drive
3 August 2021
Half-year results announced today from Travis Perkins for the six months ended 30 June 2021 provide a fascinating snapshot of challenges that businesses linked to the construction industry face in meeting strong demand, supply chain pressures and the drive towards sustainability.
First of all, the group delivered a strong performance with revenue of £2,299m in its continuing businesses (Wickes was spun out and the Plumbing & Heating activity sold). This is up 37.7% or, more meaningfully given the impact of the Covid-19 pandemic in 2020, some 10.7% ahead of 2019.
However, TP’s observations about future prospects are particularly interesting. As well as robust “ongoing demand for new housing and historic underinvestment in the repair, maintenance and improvement of the existing UK housing stock”, it highlights the Government's commitment to decarbonise the UK economy, providing stimulus packages across a number of sectors.
In terms of sustainability, on 12 July the group announced a commitment to a new 1.5C degree-aligned carbon reduction target by 2035, consistent with the 1.5 degree pathway of the 2016 Paris Agreement to limit global warming.
For Scope 1 and 2 carbon – essentially emissions a company makes directly or indirectly from its own operations, like running vehicle fleets and buildings – TP says this target will involve an 80% reduction, and a net zero commitment to offset any remaining Scope 1 and 2 carbon by 2035.
For Scope 3 emissions, which apply to the carbon footprint of businesses throughout an organisation’s supply chain, the initiative involves a 63% carbon reduction by 2035.
Travis Perkins states that it has already made progress by reducing Scope 1 and 2 carbon intensity (per £m sales) by 45% since 2013.
As part of this commitment, in March the group added its first fully electric HGV to the fleet of its CCF interior materials operation, with more such vehicles in the pipeline. Additionally, all LPG forklift trucks will also be replaced by electric equivalents.
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