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About this update from Next Plc
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Independent Limited Assurance Report to the Directors of NEXT plc on the selected ESG performance metrics Our limited assurance conclusion Based on the procedures we have performed, as described under the "Summary of work performed", and the evidence we have obtained, nothing has come to our attention that causes us to believe that the information marked with the symbol in NEXT plc's Corporate Responsibility Report and with the symbol in NEXT plc's Annual Report and Accounts for the 52 weeks ended 25 January 2025 (the "Reports") and summarised below (together, the "Subject Matter Information"), has not been prepared, in all material respects, in accordance with NEXT plc's Reporting Principles, Criteria and Methodology (the "Reporting Criteria") as set out in Appendix A. What we were engaged to assure The Subject Matter Information needs to be read and understood together with the Reporting Criteria which NEXT plc's Directors are solely responsible for selecting and applying. The Subject Matter Information and the Reporting Criteria are as set out within Appendix A below. The scope of our work did not extend to information in respect of earlier periods or to any other information included in, or linked from, the Reports including any images, audio files or videos. Our work Professional standards applied We performed a limited assurance engagement in accordance with International Standard on Assurance Engagements 3000 (Revised) 'Assurance Engagements other than Audits or Reviews of Historical Financial Information' and, in respect of the greenhouse gas (GHG) emissions in accordance with International Standard on Assurance Engagements 3410 'Assurance Engagements on Greenhouse Gas Statements', issued by the International Auditing and Assurance Standards Board. Our independence and quality control We have complied with the Institute of Chartered Accountants in England and Wales Code of Ethics, which includes independence and other requirements founded on fundamental principles of integrity, objectivity, professional competence and due care, confidentiality and professional behaviour, that are at least as demanding as the applicable provisions of the International Code of Ethics for Professional Accountants (including International Independence Standards) issued by the International Ethics Standards Board for Accountants (IESBA Code). We apply International Standard on Quality Management (UK) 1 and accordingly maintain a comprehensive system of quality management including documented policies and procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements. Summary of work performed We performed a limited assurance engagement. Because the level of assurance obtained in a limited assurance engagement can vary, we have provided more detail about the procedures performed, so that the intended users of the Subject Matter Information can understand the nature, timing and extent of procedures performed as context for our conclusion. The procedures performed vary in nature and timing from, and are less in extent than for, a reasonable assurance engagement. Consequently, the level of assurance obtained in a limited assurance engagement is substantially lower than the assurance that would have been obtained had a reasonable assurance engagement been performed. In performing our assurance procedures, which were based on our professional judgement, we performed the following: ● evaluated the suitability of NEXT plc's use of the Reporting Criteria as the basis for preparing the Subject Matter Information including the associated reporting boundaries; ● through inquiries and walkthroughs, obtained an understanding of NEXT plc's control environment, processes and systems relevant to the preparation of the Subject Matter Information. This included specific consideration of processes relevant to acquisitions included in the data for the first time this year. Our procedures did not include evaluating the suitability of design, obtaining evidence about their implementation or testing operating effectiveness of particular control activities; ● evaluated whether NEXT plc's methods for developing estimates are appropriate and had been consistently applied, noting that our procedures did not involve testing the data on which the estimates are based or separately developing our own estimates against which to evaluate NEXT plc's estimates; ● compared year on year movements and obtained explanations from management for significant differences we identified; ● performed limited substantive testing of the Subject Matter Information, which is aggregated from information submitted by the various NEXT plc departments responsible for the various operating sites (i.e. retail stores, warehouses, offices etc.) that reside within the operational boundary. Testing involved agreeing arithmetical accuracy of calculations, and agreeing data points to or from source information to check that the underlying subject matter had been appropriately evaluated or measured, recorded, collated and reported; ● undertook site visits at the NEXT plc E3 Warehouse and Recycling centre, and FatFace and Reiss retail store sites to assess the completeness of the reported fuel and waste types in the data set; we selected these sites based on their inherent risk and/or materiality to the group; and ● evaluated the disclosures in, and overall presentation of, the Subject Matter Information. Our assurance procedures specifically did not include procedures on the financial information extracted from the audited accounts of NEXT plc and used in the calculation of 'Intensity metric - Location Based (Tonnes CO2e/Total Sales (£m)' and 'Intensity metric - Market Based (Tonnes CO2e/Total Sales (£m)'. Materiality We are required to plan and perform our work to address the areas where we have identified that a material misstatement of the Subject Matter Information is likely to arise. We set certain quantitative thresholds for materiality. These, together with qualitative considerations, helped us to determine the nature, timing and extent of our procedures in support of our conclusion. We believe that it is important that the intended users have the information they need to understand the concept and the level of materiality to place our conclusion in context. Based on our professional judgement, we determined materiality for the Subject Matter Information as follows: Overall materiality Materiality may differ depending upon the nature of the Subject Matter Information. We apply professional judgement to consider the most appropriate materiality benchmark for each aspect of the Subject Matter Information, having considered how the intended users may use the information. Based on our professional judgement, we determined materiality for the Subject Matter Information as indicated in the table in Appendix A by one of the following letters: A. This metric is an absolute number. A benchmark materiality of 5% of the total reported metric figure has been applied. B. This metric measures intensity, which is calculated as a ratio between 2 different numbers. A benchmark of 5% has been applied to both the numerator and denominator used in the calculation. C. This metric is a percentage. A benchmark materiality of 5% has been applied to both the numerator and denominator used in the percentage calculation. 2 We also agreed to report to the Directors misstatements ("reportable misstatements") identified during our work at a level below overall materiality, as well as misstatements below that lower level that in our view warranted reporting for qualitative reasons. The Directors are responsible for deciding whether adjustments should be made to the Subject Matter Information in respect of those items. Areas of Assurance Focus The Areas of Assurance Focus are those areas of our work that, in our professional judgement, require additional procedures. In the case of limited assurance, that means our procedures may be towards the upper end of those that might be expected for limited assurance. These areas were identified as part of our risk assessment and result of the assurance procedures performed, and include those areas of significant risk, areas that involved significant judgement or other areas where significant assurance effort was needed. This approach provides transparency about where we deemed it necessary to perform extra work. However, this does not imply - for limited assurance - the same level of assurance as would have been obtained under a reasonable assurance engagement. We have determined that there are no Areas of Assurance Focus to communicate in our report. Challenges of non-financial information The absence of a significant body of established practice upon which to draw to evaluate and measure non-financial information allows for different, but acceptable, evaluation and measurement techniques that can affect comparability between entities, and over time. Non-financial information is subject to more inherent limitations than financial information, given the characteristics of the underlying subject matter and the methods used for measuring or evaluating it. The precision of different measurement techniques may also vary. Reporting on Other Information The other information comprises all of the information in the Reports other than the Subject Matter Information and our assurance report. The Directors are responsible for the other information. As explained above, our conclusion does not extend to the other information and, accordingly, we do not express any form of assurance thereon. In connection with our assurance of the Subject Matter Information, our responsibility is to read the other information. In doing so, we consider whether the other information is materially inconsistent with the Subject Matter Information or our knowledge obtained during the assurance engagement, or otherwise appears to contain a material misstatement of fact. If we identify an apparent material inconsistency or material misstatement of fact, we are required to perform procedures to conclude whether there is a material misstatement of the Subject Matter Information or a material misstatement of the other information, and to take appropriate actions in the circumstances. Responsibilities of the Directors The Directors of NEXT plc are responsible for: ● determining appropriate reporting topics and selecting or establishing suitable criteria for measuring or evaluating the underlying subject matter; ● ensuring that those criteria are relevant and appropriate to NEXT plc and the intended users of the Reports; ● the preparation of the Subject Matter Information in accordance with the Reporting Criteria including designing, implementing and maintaining systems, processes and internal controls over the evaluation or measurement of the underlying subject matter to result in Subject Matter Information that is free from material misstatement, whether due to fraud or error; ● documenting and retaining underlying data and records to support the Subject Matter Information; ● producing the Reports that provide a balanced reflection of NEXT plc's performance in this area and disclose, with supporting rationale, matters relevant to the intended users of the Reports; and ● producing a statement of Directors' responsibility. 3 Our responsibilities We are responsible for: ● planning and performing the engagement to obtain limited assurance about whether the Subject Matter Information is free from material misstatement, whether due to fraud or error; ● forming an independent conclusion, based on the procedures we have performed and the evidence we have obtained; and ● reporting our conclusion to the Directors of NEXT plc. Use of our report Our report, including our conclusion, has been prepared solely for the Directors of NEXT plc in accordance with the agreement between us dated 30 July 2024 and the variation letter dated 21 March 2025 (the "agreement"). To the fullest extent permitted by law, we do not accept or assume responsibility or liability to anyone other than the Board of Directors and NEXT plc for our work or our report except where terms are expressly agreed between us in writing. PricewaterhouseCoopers LLP Chartered Accountants Watford 27 March 2025 4 Appendix A - the Subject Matter Information and Reporting Criteria Subject Matter Information as per the Reports Reporting criteria Performance Indicator Materiality 2024/25 Unit Location of NEXT plc's Reporting reference* Metric Criteria - available at: Greenhouse Gas (GHG) Emissions https://www.nextplc. co.uk/corporate-resp onsibility/a-summary Scope 1 A 43,332 Tonnes CO2e 'Corporate -of-our-approach 1 Responsibility' Scope 2 - Location Based A 42,152 Tonnes CO2e section of the Annual Report Scope 2 - Market Based A 3,756 Tonnes CO2e and Accounts and/or the Corporate Total Scope 1 and 2 - Location Based A 85,484 Tonnes CO2e Responsibility Report pg. 18 Total Scope 1 and 2 - Market Based A 47,088 Tonnes CO2e Intensity Metric - Location Based B 13 tonnes CO2e/total sales (£m) Intensity Metric - Market Based B 7 tonnes CO2e/total sales (£m) Scope 3 - Subtotal subject to A 106,513 Tonnes CO2e assurance Carbon emissions Scope 1 and 2 carbon emission C 47 % reduction against a 2016/17 baseline Energy Gas usage A 39,435,841 kWh Electricity usage A 191,774,438 kWh Total Energy Consumption A 379,977,427 kWh Waste and Recycling Total waste A 35,594 Tonnes Material diverted for recycling and A 34,690 Tonnes energy recovery % diverted from landfill C 97 % The materiality reference refers to our assessment of materiality discussed in the Materiality section of this report. 1 The maintenance and integrity of NEXT plc's website is the responsibility of the Directors; the work carried out by us does not involve consideration of these matters and, accordingly, we accept no responsibility for any changes that may have occurred to the reported Subject Matter Information or Reporting Criteria when presented on NEXT plc's website. 5