Carbon Reduction Plan
1. Executive Summary
Arcadia Pharma Ltd (APL) is committed to achieving Net Zero emissions at the latest by 2050.
Reducing our Greenhouse Gas (GHG) emissions brings significant benefits for us, our customers, suppliers, and the wider community.
This Carbon Reduction Plan (CRP) will cover APL’s baseline year information (2022), setting clear targets for reducing GHG emissions over key timeframes and planned actions to achieve Carbon Net Zero by 2050 at the latest. These will align with our obligations under the Greening Government Commitments (GGC). Our aim is to ensure the highest levels of engagement with this Carbon Reduction Plan across APL.
Many of these targets will be achieved through behavioural change, others will require funding in some cases, such as building and office improvements, which may be from governmental bodies like the Government Property Agency (GPA).
As a largely administration-based business, with no permanent vehicle fleet, and shared office space, APL already has a relatively small carbon footprint. These planned actions will reduce our levels of carbon production to Net Zero by 2050 at the latest, but an earlier date of Net Zero by 2040 is achievable as a stretch target.
2. Meeting the reporting requirements
This Carbon Reduction Plan complies with NHS procurement requirements for our supply chain which is in accordance with PPN 06/21 as published by the Cabinet Office in June 2021. This document will be reviewed and updated annually in line with a new APL Annual Report and Accounts system.
3. Commitment to achieving Net Zero
APL is committed to achieving Net Zero GHG emissions by 2050. We recognise the urgent need to rapidly decarbonise the whole of UK industry and global emissions.
4. Carbon footprint methodology
The APL carbon footprint methodology is based on the assumptions of our operational model being a warehouse, packing, repackaging and administration-based and our premises is controlled by APL entirely.
For the first time, in the 2023 CRP, Arcadia Pharma Ltd is reporting our carbon emissions associated with our occupancy of one office managed by APL. The office is in Fforestfach, Swansea.
APL is primarily a packaging and repackaging warehouse specialising in the sale of Pharmaceutical Drugs. The distribution of which is contracted to a third party. As
such we do not own a fleet of vehicles, nor do we have much land to use or develop on. As a result, we have a small overall carbon footprint, but one nonetheless that we will be able to reduce through action.
To avoid corrupting the information, we do not consider the carbon footprint information from our third party distributor in our data.
5. Baseline Carbon Emissions - Jan ‘23 - Dec ‘23
5.1 Baseline year: FY 1st January 2023 – 31st December 2023
APL has 1 office and a small number of travelling or “off site” staff which is reported on.
5.2 Scope 1
The APL Scope 1 data consists of proportionate Fuel usage.
|
Office location |
Tonnes CO2e |
Occupancy |
|
Vehicle Usage |
1.1t |
9 Vehicles |
|
Total |
1.1t |
9 Vehicles |
For clarity, we do not own or operate a Fleet however there are 9 personnel who use personal vehicles for business purposes which is reported in line 2 above.
5.3 Scope 2
The APL Scope 2 data consists of electricity purchased in our office. Currently, our office is not on a green tariff, this change will be made in 2024.
|
Office location |
Tonnes of CO2e |
Max Occupancy |
|
Fforestfach, Swansea |
0.827 |
30 |
|
Total |
0.827 |
|
5.4 Scope 3
Our Scope 3 footprint will be dominated by emissions resulting from imports. At current, we know the carbon footprint produced from importing goods from India is 1.3391 KgCO2 (as per Statistica) per full shipping container of good. In 2024 we will be evaluating the container equivalent for the amount of deliveries received via this mode of transport as well as monitoring deliveries into the organisation from the source location to our depot to work out carbon generated under Scope 3.
In our baseline year of 2023 we had not collated, monitored or recorded our Scope 3 emissions in regard to the following subsets: Upstream transportation and distribution, Waste generated in operations, Business travel, Employee Commuting and Downstream Transportation and Distribution.
The reason as to why this is the case is that, due to the nature of our organisation, we have limited control or influence over the majority of our upstream activities and as a result have not considered or implemented measures to comply with the new reporting requirements in relation to public sector procurement.
5.5 Current reporting year: FY 1st Jan 2023 – Dec 2023
As the recording and reporting of this information has not been a priority for APL up until this point, 2023-2024 will be our first years with a recording and reporting system in place.
For the current reporting year Scopes 1, 2 and 3 will be the baseline year reporting.
The Scope 1,2,3 data from this Carbon Reduction Plan has been submitted to the board as part of the APL annual management review meeting. This ensures that we have one concise version of the information and that all different parties involved in tackling emissions reductions have the same numbers and are working from the same starting point.
6. Emission Reduction Targets
In order to continue our progress to achieving Net Zero, we have adopted the following carbon reduction targets.
Next 12 Months to 2025: Target of 10% Carbon reduction
Next 5 years to 2028: Target of 50% Carbon reduction
Period to 2035: Target of 78% Carbon reduction
Period to 2040: Target of 100% Carbon reduction to Net Zero
These are ambitious targets, with a steep initial reduction, but this ambition is deliberate as we recognise the urgency associated with the need to reduce carbon outputs. A lot of the proposed measures in the Projects & Initiatives section can be introduced or invested in by the first two milestones of 2025 and 2028.
7. Carbon Reduction Projects
The carbon reduction opportunities in this section, once fully implemented, will reduce APLs GHG emissions each year in line with achieving Net Zero emissions by 2050 at the latest.
At present general energy saving activities, for example motion sensor lighting in infrequently used areas, signage informing staff to switch off lights and wall outlets when leaving, are in place. Following management review, we will seek to set out clear and specific carbon reduction projects which will have three key milestone dates, 2030, 2035 and 2045 which will be major review years to evaluate success of reduction projects.
In order to achieve Net Zero, APL will be required to reduce across its Scope 1, 2 and 3 emissions.
8. Scope 1 (Fuel) Actions
Detailed project plans to be discussed during management review meetings, However, currently there is general reduction of fuel usage through Teams meetings reducing the need for travel.
In the first half of 2024 there are plans to start replacing the vehicles with company electric vehicles to be used for business milage.
9. Scope 2 (Electricity) Actions
Detailed project plans to be discussed during management review meetings.
there are plans to replace all lighting in the warehouse to energy efficient, green, lighting fixtures.
10. Scope 3 Actions
Detailed project plans to be discussed during management review meetings will outline the organisational plans to work towards Net 0.
On a smaller scale, as of 2024 APL will be collecting, monitoring and recording upstream emission data for the first time. Areas that will be monitored immediately in 2024 will include the following subsets:
- Waste generated in operations
- Business travel
- Employee Commuting
Downstream Transportation and Distribution will be considered within management review meetings and a long term plan to address this will be published when available.
10.1 Employee learning and behaviour change
Every role in APL has an impact on our carbon emissions, and informed and motivated employees are key to making reductions. Every worker can reduce their energy footprint simply by switching off equipment at night, separating and sorting waste and travelling as sustainably as possible.
Actions taken to reduce the impact of employee behaviours and actions will have impact primarily on Scope 2 Electricity and some parts of Scope 3 Travel:
- regular information on reducing environmental impacts, carbon reduction and pertinent recent environmental events could be shared with APL employees in various means such.
- role by role analysis could be undertaken and then each person given a number of actions and areas which they should ensure they act on. This could also be an essential part of the Annual Review process.
- an overall performance dashboard for APL carbon reduction should be regularly updated and displayed prominently on internal channels (eg intranet, digital signage)
- regional Leadership groups for each office could have a budget to introduce measures and actions to reduce impact, or positively contribute to the environment through schemes such as tree-planting, bee hives or other Biodiversity Net-Gain actions.
- regularly review and update working arrangements in line with best practice and latest technology developments.
11. Leadership
The Executive Board of APL has given, and will continue to give, its full support to this Carbon Reduction programme and the team required to achieve Net Zero ambitions. The Executive Board will lead by example, by including regular updates from the Carbon Net Zero team in quarterly meetings and other Exec-level meetings. The Net Zero team will continue to have Exec-level support, helping to push for and then implementing changes, along with arranging for specific sub-project funding if and when needed.
12. Declaration and sign off
This Carbon Reduction Plan has been completed in accordance with NHS requirements and associated guidance and reporting standards for Carbon Reduction Plans.
Emissions have been reported and recorded in accordance with the published reporting standard for Carbon Reduction Plans and the Reporting Protocol corporate standard and uses the appropriate government emission conversion factors for company reporting.
Scope 1 and Scope 2 emissions have been reported in accordance with Streamlined Energy and Carbon Reporting (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.
This Carbon Reduction Plan has been reviewed and signed off by the Executive Board.
Signed on behalf of Arcadia Pharma Ltd:
Jason Webb
Director
16th April 2024