Report (esg report 2024 full)

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ESG Roadmap

Ambitious and achievable targets to drive meaningful impact

Group

Our Pillars

Scope 1 & 2 Net Zero

45% Reduction in Scope 3 emissions

By 2050 we will be a Net Zero company

Environment

Leading the way in environmental sustainability for the industrial inkjet technology sector

We will work to reduce our water consumption in our facilities and manufacturing processes

We will drive energy reduction through work groups and invest in renewable energy sources

We will reduce paper usage in our operations and facilities

Internal communications will continue to be

a priority

We will investigate End-of-Life product collection to improve the recycling and re-use.

We will improve biodiversity in the community where we operate

We will reduce our scope 1 emissions by reducing our F-Gas leaks

We will improve the working environment to support employee wellbeing

Every employee will have an IDP which supports them to develop the skills required for the future

We will optimise our material choices to improve sustainability

We will reduce our waste in operations and become a Zero waste to landfill company

We will aim to reduce business travel where possible

We will continue to build on our safe working culture at Xaar gaining an ISO 45001 accreditation

We will invest in annual cohorts of early talent to build the skills for the future

We will work to develop energy efficient solutions for our key markets

We will reduce and re-use chemicals in our operations where possible

We will donate and/or recycle our old IT equipment where possible

We will expand our consideration for product design to include improvement in manufacturing efficiency

We will work with the community to offer support, hospitality and opportunities

We will adhere to the GRI

We will reduce scope 3 emissions by making sustainable solutions accessible to our employees

We will develop a transparent approach to reward

We will use sustainability as an input into our supply chain design and supplier selection

We will build capability in inkjet within the wider community

We will become a FTSE4Good company

We will investigate the potential use of AI & IT to improve our manufacturing efficiencies

We will invest in early careers and develop skills for the future

We will expand our consideration for product design to include a full picture of sustainability

We will extend beyond STEM and engage with further education and other subject areas

We will improve our transportation and distribution system for our full supply chain

We will continue to build a diverse workforce

We will work with our customers to improve the end-of-life treatment of our products

We will launch a sponsorship programme for the local community

We will ensure that we invest in verified carbon removal schemes to reach net zero and continue to support sustainability

Our employee benefits will evolve and develop, responding to employee feedback

We will work to develop print head designs which are inherently more sustainable

2050

People

Be employer of choice by putting our people, their potential and wellbeing at the heart of all we do

Innovation

Encouraging more sustainable approaches to design, manufacture, technology and collaboration across the whole product lifecycle

We will build on our current STEM programme, broadening our approach and scope

We will work on initiatives to improve the environment around us within our community

We will update and communicate our environmental policy

We will build a hybrid charity programme combining a charity partner with local charity support

We will submit our strategy to the SBTi

We will validate our strategy with a sustainable accreditation

We will build on our current volunteering programme

We will become an ISO 5001 accredited company

2040

Community

Actively engaging with our communities to provide practical, lasting support that benefits society

Governance

2030

Between 2023-2024 we raised £626 for our charity partner Break from selling over 120 jars of honey harvested from our Xaar bees

To deliver on our sustainability and ESG ambitions, it is vital that we work towards clear milestones and goals

Rebaselining our sustainability targets

We have reinforced our commitment to sustainability with a rebaselined ESG Roadmap, which sets ambitious yet achievable targets to drive meaningful environmental, social and governance impact.

Xaar's first Sustainability Roadmap was launched in 2020 and we have made considerable progress in the five years since. We are on track to hit our target of a 90% reduction in Scope 1 and 2 emissions by 2030.

Following a review of the requirements to complete Scope 3, we have extended the total timeline to 2050. The decision to rebaseline signifies Xaar's learnings during this period, as well as acknowledging recent regulatory and market changes.

"Our research indicates that the majority of governments and companies have publicly set 2050

as their end date, and even those that are promising an earlier timeframe don't go sooner than "2040," Graham Tweedale, Chief Operating Officer

Our revised target aligns with industry best practices and ensures a pragmatic, achievable approach to reducing emissions, by prioritising the areas - such as energy and waste - that will deliver the biggest impact, soonest.

Beth Connolly-Atkins, Strategy and Business Planning Manager

REBASELINE

An improved ESG roadmap

The updated roadmap has been created with the support of the wider Xaar organisation, and input from stakeholders across our supply chain.

To make it as robust as possible, we undertook an extensive materiality assessment to determine exactly what internal and external stakeholders deemed most important and substantive. Amongst the groups consulted were customers, suppliers, STEM and charity partners, and employees.

Workshops were attended by over 20 representatives from across the business - with over 300 ideas shared and used to clarify and refine the roadmap.

"Based on such a thorough process - and with five years of learnings since the original roadmap - we're confident that the rebaselined ESG Roadmap is accurate, achievable, and better aligned with the needs of our business, employees and customers

Graham Tweedale, Chief Operating Officer

REBASELINE

Above and beyond

While our timeline may have changed, the Xaar ESG Roadmap goes beyond standard requirements in order to future proof our ability to offer best-in-class, sustainable technologies to customers.

This thinking is embedded in the pillars established by Xaar in 2020, to which latest Roadmap adds a fifth pillar, Governance.

Our Five Pillars

ENVIRONMENTPEOPLEINNOVATION COMMUNITY GOVERNANCE

"As a key player in the supply chain of many industries, we are playing an active role in supporting customers' own sustainability initiatives - for example, through inkjet innovations that reduce waste or require less energy

Graham Tweedale, Chief Operating Officer

REBASELINE

Zero to landfill

We have implemented 'zero waste to landfill,' across all three of Xaar's UK sites - Huntingdon, Waterbeach and the Megnajet facility in Kettering - with the support of waste services provider BIFFA.

As well as ensuring that zero waste is sent to landfill, we have improved our UK site waste management processes to better separate general recycling and food, a move that comes ahead of anticipated food waste regulations.

We introduced new colour-coded bins at each location to accommodate the change in process, supported by internal communications to help educate employees. A vital decision was to reduce the total number of bins on-site, to make it easier for everyone to follow the system correctly.

The work undertaken on the zero waste to landfill initiative will drive multiple environmental benefits, with improved separation processes ensuring that a greater volume of waste is "suitable for recycling. We will monitor data to quantify the results.

During our sustainability workshops, it was clear that people like to see tangible evidence of our commitment to environmental responsibility. The changes to our waste processes provide one way of achieving this because it's such a visual system

Beth Connolly-Atkins, Strategy and Business Planning Manager

ENVIRONMENT

Wellbeing

Providing a safe and confidential space for employees to discuss their emotional needs, our Mental Health First Aiders continue to grow in strength and impact.

In 2024, we onboarded our first Megnajet site representative, expanding support across our locations. Existing First Aiders also completed refresher training with St John's Ambulance, ensuring they remain well-equipped to assist colleagues. To further strengthen this initiative, First Aiders meet regularly to support each other and share

best practices.

Our new partnership with The Printing Charity has further enhanced wellbeing support, by offering a free, 24-hour helpline with emotional support, line manager guidance, and specialist services such as

debt advice.

We remain committed to making wellbeing a core part of our business. All available services are prominently signposted across our sites, and we actively engaged in Mental Health Awareness Week 2024. With the theme "Movement: Moving More for Mental Health," we encouraged employees to participate in lunchtime walks and other activities, reinforcing the connection between physical

activity and mental wellbeing.

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Mental Health First Aiders

Across all sites in the UK

Xaar Group ESGPEOPLEReport 2024

Sustainability through R&D

Sustainability and efficiency are fundamental drivers of our R&D strategy. We want to anticipate customer challenges and develop inkjet technologies that create real-world value by addressing reliability, efficiency and sustainability hand-in-hand.

While developing our Ultra High Viscosity Technology, we knew we needed to translate it into tangible benefits for customers. This led to the creation of our DIVA project - Demonstration of Increased Viscosity Advantages. Through extensive research, testing, and collaboration with ink manufacturers, we found that the technology delivers a clear sustainability advantage as well as cost savings for customers.

In collaboration with Swansea University's Welsh Centre for Printing and Coating, we worked on a peer-reviewed study, published in the Journal of Coatings Technology and Research. The findings confirmed the transformative impact of our Ultra High Viscosity Technology and our

Xaar Aquinox printhead when combined with innovative high viscosity water-based fluids developed by Nazdar. With access to a broader range of ingredients thanks to our technology, ink chemists at Nazdar were able to develop these advanced fluids to unlock a new world

of possibilities.

We also hosted our 'Seeing is Believing' Open Day in November 2023, to demonstrate these advantages to our customers and partners.

Key takeaways from the research included:

• Colour density increased by up to 67% on coated white corrugated substrates, enhancing vibrancy and print quality.
• Lower ink consumption, with high viscosity fluids requiring less ink to achieve the same intensity.
• Reduced drying energy, thanks to the minimal absorption into substrates.