Morgan Advanced Materials : Strong ESG performance strengthens the investment case for Morgan

About this update from Morgan Advanced Materials Plc

We have made exceptional progress against science-based climate targets. In 2025, we reduced our scope 1 and 2 emissions to 145,137 tonnes of CO ₂ e, representing a 58% reduction versus baseline. This is significantly ahead of the glidepath towards a 50% reduction by 2030. We achieved a target of sourcing 80% renewable and nuclear electricity in 2025, supported by long-term contracts across key geographies. Energy efficiency remains core to our sustainability strategy. Across our divisions, multiple projects delivered meaningful reductions in emissions, including a 1.8 MW solar array in the US powering 12% of a major site's electricity needs, and a new electric annealing oven in France that cuts 740 tonnes of CO ₂ annually. Total energy consumption fell to 897.4 GWh, down 2% year-on-year. Water stewardship is another area where we demonstrate industry leadership. Total water withdrawal decreased to 1.43 million m³ in 2025, an 11% reduction year-on-year and a 39% reduction since 2015. In water stressed regions, usage dropped to 331,175 m³, down 23% from baseline, reflecting investments in closed loop cooling systems and operational efficiencies. Our thermal insulation materials, advanced ceramics and high purity carbon products directly support customers' emissions reductions, enabling more energy efficient processes and longer lasting components. Our ESG progress is underpinned by strong governance. Oversight is delivered through a structured sustainability framework, with the Board reviewing climate progress four times a year. Climate disclosures are aligned with TCFD, and Scope 1, 2 and key environmental metrics are independently assured. Importantly for investors, we integrate ESG directly into executive compensation structures, with sustainability metrics representing 15% of long-term incentive outcomes. As global capital increasingly flows toward companies with credible pathways to net zero and high-integrity ESG execution, Morgan Advanced Materials is exceptionally well positioned. Our track record strengthens our investment appeal and reinforces our role as a long-term partner in global energy transition.

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