tier1 – Carbon Reduction Plan

Supplier name: Tier 1 Asset Management

Publication date: 31 March 2023

Commitment to achieving Net Zero

Tier1 is committed to achieving Net Zero emissions by 2040.

Baseline Emissions Footprint

Baseline emissions are a record of the greenhouse gases that have been produced in the past and were produced prior to the introduction of any strategies to reduce emissions. Baseline emissions are the reference point against which emissions reduction can be measured.

Current Emissions Reporting

Emissions reduction targets

In order to continue our progress to achieving Net Zero, we are in the process of setting near and medium-term carbon reduction targets. See Carbon Reduction Projects below for more details.

However, assuming a straight-line reduction to Net Zero in 2040, our reduction pathway would look as follows:

Carbon Reduction Projects

Prior to the FY2023 baseline, we achieved our ISO 14001 accreditation. EMS 86615 effective date 16 01 2021, expiry date 15 01 2024.

In FY2024, we plan to be verified to the PAS 2060 standard (carbon neutrality). We will also engage with a third-party carbon consultant to expand the scope of our carbon measurement to additional scope 3 categories and improve the quality of the data feeding into our carbon emissions calculations. In addition, we plan to implement a carbon data management platform, which will help to improve data quality and completeness.

As part of our engagement with the third-party carbon consultant, we plan to set near and medium-term carbon intensity targets to support our long-term goal of Net Zero by 2040. Our carbon intensity for FY2023 is estimated to be 30.6 tCO2e per £m revenue (based only on scopes 1 and 2 and categories 1, 3, 4, 5 and 6 of scope 3). Our rationale for setting intensity (rather than absolute) targets in the short-term is that tier1 is forecasted to grow by approximately 160% in revenue terms by FY2026 (compared to FY2023). As we have a circular economy business model which contributes to the avoidance of carbon emissions through the refurbishment and recycling of existing IT products (and thus the reduction of new IT products), we believe that the growth of tier1 is aligned with the path to planetary Net Zero.

The carbon reduction measures that we are planning to explore with a third-party carbon consultant include:

1. Transitioning the predominantly diesel-powered tier1 fleet (on replacement) to low carbon alternatives such as electric, biogas, hydrogen powered trucks.
2. Working with downstream partners to electrify the last mile delivery for consumer deliveries.
3. Transitioning our company cars (on replacement) to electric or hybrid cars
4. Switching to a 100% renewable energy contract upon expiry of current contract in 2026.
5. Making upgrades to our warehouses which improve energy efficiency and reduce the use of gas, such as installation of double-glazed windows, upgrade to LED lighting and replacement of our heating and cooling systems.

Declaration and Sign Off

This Carbon Reduction Plan has been completed in accordance with PPN 06/21 and associated guidance and reporting standard for Carbon Reduction Plans.

Emissions have been reported and recorded in accordance with the published reporting standard for Carbon Reduction Plans and the GHG Reporting Protocol corporate standard[1] and uses the appropriate Government emission conversion factors for greenhouse gas company reporting[2].

Scope 1 and Scope 2 emissions have been reported in accordance with SECR requirements, and the required subset of Scope 3 emissions have been reported in accordance with the published reporting standard for Carbon Reduction Plans and the Corporate Value Chain (Scope 3) Standard[3].

This Carbon Reduction Plan has been reviewed and signed off by the board of directors (or equivalent management body).

Signed on behalf of the Supplier:

[1]https://ghgprotocol.org/corporate-standard

[2]https://www.gov.uk/government/collections/government-conversion-factors-for-company-reporting

[3]https://ghgprotocol.org/standards/scope-3-standard

Jonathan Rose CEO

Date: 10 May 2023