Xaar : Report (esg report 2024 full)

About this update from Xaar Plc

2024 ESG Report Enter 2 OUR ROADMAP REBASELINE ENVIRONMENT PEOPLE INNOVATION COMMUNITY GOVERNANCE What sustainability means to Xaar Every business has an opportunity to make a positive contribution to the planet and society, and Xaar is no exception. We are passionate about driving our business in a way that is underpinned by a strong sense of ethics, corporate responsibility and a commitment to minimising our environmental impact. The Roadmap has five key pillars - Environment, People, Innovation, Community and Governace; its purpose is to drive our ESG goals beyond the current Scope 3 requirements, enabling our customers to become more sustainable by using our products. Our Roadmap will provide an essential backbone for much of Xaar's future investment and activity. Click to veiw last year's report Xaar Group ESG Report 2024 3 OUR ROADMAP REBASELINE ENVIRONMENT PEOPLE INNOVATION COMMUNITY GOVERNANCE 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 4 OUR ROADMAP REBASELINE ENVIRONMENT PEOPLE INNOVATION COMMUNITY GOVERNANCE 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 Xaar Group ESG Report 2024 5 OUR ROADMAP REBASELINE ENVIRONMENT PEOPLE INNOVATION COMMUNITY GOVERNANCE 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 Xaar Group ESG Report 2024 6 OUR ROADMAP REBASELINE ENVIRONMENT PEOPLE INNOVATION COMMUNITY GOVERNANCE 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 ENVIRONMENT PEOPLE INNOVATION 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 Xaar Group ESG Report 2024 7 OUR ROADMAP REBASELINE ENVIRONMENT PEOPLE INNOVATION COMMUNITY GOVERNANCE 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 Xaar Group ESG Report 2024 8 OUR ROADMAP REBASELINE ENVIRONMENT PEOPLE INNOVATION COMMUNITY GOVERNANCE 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. 12 Mental Health First Aiders Across all sites in the UK Xaar Group ESG PEOPLE Report 2024 9 OUR ROADMAP REBASELINE ENVIRONMENT PEOPLE INNOVATION COMMUNITY GOVERNANCE Development Launched in 2022, our 'Inspiring EPIICC Leaders' programme equips new and aspiring line managers with the skills, knowledge, and behaviours needed to succeed within Xaar. After a successful first cohort in 2023, we welcomed a new group of future leaders the following year, who participated in tailored workshops delivered by our training partner/provider Grassroots. Key topics included leadership styles, managing teams, and navigating change. For the wider business, our third annual Learning at Work Week was a major highlight. Employees engaged in a diverse range of workshops and events, covering topics from R&D innovations to mastering Excel. 301 PEOPLE Hours of learning during learning at work week Collectively across the company Xaar Group ESG Report 2024 10 OUR ROADMAP REBASELINE ENVIRONMENT PEOPLE INNOVATION COMMUNITY GOVERNANCE 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. INNOVATION Click to read our blog Xaar Group ESG Report 2024

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