08 July 2021
Halma, the global group of life-saving technology companies, has announced new global climate targets as part of its long-term sustainable growth strategy. These include a commitment to reach Net Zero for its operations1 by 2040 and to reduce operational greenhouse gas emissions by 42%2 by 2030. The 2030 target is aligned with climate science and the Paris Agreement's goal to limit global warming to 1.5 degrees Celsius above pre-industrial levels.
These climate change targets are one of three elements of a new Sustainability Framework that Halma has announced, called Key Sustainability Objectives.
Halma's three Key Sustainability Objectives are:
• Climate Change - addressing climate change in terms of both the opportunities and risks it presents and by minimising Halma's own greenhouse gas emissions.
• Diversity, Equity & Inclusion - working towards a fairer future for everyone, every day and ensuring its businesses can thrive and be sustainable in the long-term.
• Circular Economy - designing out waste and pollution and incorporating reused and recycled materials within products where feasible.
Amplifying positive impact through a new Sustainability Framework
Halma's life-saving technologies have a positive impact on the world. Over two thirds of its revenue is aligned with its four chosen United Nations Sustainable Development Goals3, and so as Halma grows its positive impact grows too.
Halma's Sustainability Framework has been created to further amplify this positive impact and help it fulfil its purpose of growing a safer, cleaner, healthier future for everyone, every day.
The Key Sustainability Objectives are aligned to the Group's purpose and relevant to its companies. By reducing its negative impact while growing its business, Halma can have the greatest net positive impact on people and our planet.
Marc Ronchetti, Halma's Group Chief Financial Officer and Board Member responsible for Sustainability, said:
'Our new climate targets and Sustainability Framework are aligned to our purpose of growing a safer, cleaner, healthier future for everyone, every day, and build on the sustainable growth strategy we have had for many years.
'The positive impact Halma's technologies already have on people and our planet - such as providing safe buildings, clean water and patient care - will be further amplified through our new Sustainability Framework. It will help our companies prioritise and track progress in those areas of sustainability where we can have a significant impact'.
Note to editors
Halma's initial focus is on its Climate Change and Diversity Equity & Inclusion Key Sustainability Objectives (KSOs); it is at the initial stages of understanding the most relevant focus areas for its Circular Economy Key Sustainability Objective. During the coming year, Halma will focus on education and engagement with its companies around the three KSOs, and will seek to disclose more specific objective statements and additional medium and long-term targets as they are developed. Halma will report on progress against each KSO in its Annual Reports & Accounts.
New climate change targets
Halma proposes to meet its Net Zero target in line with evolving guidance from the Science-based Targets Initiative, by reducing emissions as much as feasibly possible before neutralising residual emissions . Halma will continue reporting in line with the recommendations from the Taskforce for Climate Related Financial Disclosure (TCFD) in its Annual Report for the year ended 31 March 2022.
Alongside these commitments, Halma also recognises the need to work towards Net Zero across its entire value chain. Over the coming year, a full assessment of the Group's supply chains and other Scope 3 emissions will be carried out to determine the targets and commitments that will be most appropriate for Halma.
Championing Diversity, Equity & Inclusion (DEI)
DEI significantly benefits the global economy and creates a fairer future for everyone, every day. Halma has an ambition for all Halma company boards to be within a 40-60% gender balance range, and deadlines for meeting these targets will be announced during the fiscal year. At the company board level, female representation has increased from 18% last year to 22% this year.
This builds on a strong track record:
• More than 50% of Halma senior leaders are women and Halma's plc Board and Executive Boards are 42% and 70% women, respectively.
• Across Halma, 46% of graduates from the Halma Future Leaders programme in the last four years have been women.
Focusing on a circular economy
A circular economy is based on the principles of designing out waste and pollution and keeping products and materials in use. Halma recognises that it can have a more significant impact across the value chain by introducing more circular economy principles. Halma is at the initial stages of understanding the most relevant focus areas for the Circular Economy KSO, through engagement with our companies and using external expertise where relevant over the coming year.
Read more about Halma's Key Sustainability Objectives.
1Global Scope 1 & 2 greenhouse gas emissions.
2A 42% absolute reduction in global Scope 1 & 2 greenhouse gas emissions by 2030 from the 2020 baseline.
3UNDSG 3 (Health and Wellbeing), UNSDG 6 (Clean water and sanitation), UNSDG 9 (Industry, Innovation and Infrastructure), UNSDG 11 (Sustainable Cities and Communities).
4Through credits or other means that permanently remove an equivalent volume of atmospheric CO2.