Grafton Group (GFTU) 2024年CSR報告「LSE」.pdf

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1、Sustainability StatementBuilding the foundations for a sustainable future2024 highlightsReduction in market-based Scope 1&2 GHG emissions 2024 vs 202138.6%Reduction in Scope 3 GHG emissions 2023 vs 202113.7%74%increase in HVO use 2024 vs 2023 saving1,800 tCO2e Increased proportion of women in leader

2、ship from 13.0%15.0%Renewable energy produced from our solar PV arrays170,000 kWh Waste diverted from landfill99.3%Selected EcoVadis to support our supply chain due diligenceCommunity donations made by the Group1.2m Approved new Group colleague Wellness at Work policyNet-zero targets validated Find

3、out more on page 6454Grafton Group plcInside this section55 CEO and CFO introduction56 General Disclosures57 Our Approach58 Double Materiality Assessment60 Impacts,Risks and Opportunities64 Environmental Disclosures64 Climate change69 Resource Use and Circular Economy72 Social Disclosures72 Own Work

4、force77 Workers in the Value Chain78 Consumers and End-users79 Governance Disclosures79 Business Conduct81 Assurance ReportThis 2024 Sustainability Statement is structured using the European Sustainability Reporting Standards(ESRS)as a guide as we prepare to comply with the Corporate Sustainability

5、Reporting Directive(CSRD)as per the legislative timeline.While we have used the ESRS as a guide,this 2024 statement is not compliant with the CSRD.CEO and CFO introductionIn 2024,we made significant progress in priority areas of sustainability for the Group.Strategic sessions have taken place at Boa

6、rd level and at the Executive Sustainability Committee covering legislation,climate change,wellbeing and supply chain management.On climate change we have committed to reach net-zero greenhouse gas emissions across the value chain by 2050 and have received validation by the Science-Based Targets ini

7、tiative of this target and the associated near and long-term targets (see page 64).We are working on appropriate transition plans which will support the delivery of our targets.The legislative landscape related to ESG in the EU is changing rapidly.Over the coming years Grafton needs to prepare for a

8、nd meet a series of regulations including the carbon borders adjustment mechanism and directives on deforestation,supply chain due diligence and corporate sustainability reporting.Our Group Head of Sustainability has briefed the Board,Executive Sustainability Committee,Procurement Board,Finance Lead

9、ership Team and other key departments on these regulations and their implementation.Many of these areas of legislation relate to our value chain and supply chain management is central to this work.Our Group Procurement Director has worked with our Group Head of Sustainability and procurement leads a

10、cross our business units to strengthen our due diligence processes.We have started working with EcoVadis,a globally recognised sustainability ratings agency,to assess our supply chain partners.This will be central to our due diligence process moving forward.The Executive Sustainability Committee has

11、 been consulted on a new Wellness at Work policy building on all the good work taking place across the Group to ensure colleague,safety,health and wellness is integrated into daily work.This policy sets out our approach to physical,social,emotional and financial wellbeing.Over the coming year we wil

12、l continue to prepare for the upcoming regulations and work to integrate new businesses,including Salvador Escoda,into our sustainability programmes.Eric BornChief Executive Officer5 March 2025David ArnoldChief Financial Officer5 March 202555Annual Report and Accounts 2024CorporateGovernanceSustaina

13、bilityStatementFinancial StatementsSupplementary InformationStrategicReportGeneral disclosuresGeneral disclosuresGeneral DisclosureNotesLocationGeneral basis for preparation of the sustainability statementReport covers the 2024 financial year from 1 January 2024 to 31 December 2024.The scope of the

14、report includes our distribution,retailing and manufacturing operations covered by our business units.The acquisition of Salvador Escoda was finalised on 30 October 2024.Given the challenges involved in collecting a number of the ESG data points,this business has been excluded from the data points p

15、resented on sustainability.EY has completed a limited assurance engagement over selected performance data.Data points excluding Salvador Escoda are indicated throughout this statement with The EY assurance statement can be found on page 81.Information within the scope of this assurance is indicated

16、throughout the document with a Disclosures in relation to specific circumstances Any divergence from the scope outlined in the basis for preparation notes above is indicted in the accounting notes presented next to each section.The role of the administrative,management and supervisory bodiespages 79

17、 and 86Information provided to and sustainability matters addressed by the undertakings administrative,management and supervisory bodiespages 79 and 86Integration of sustainability-related performance in incentive schemespages 102 and 115Statement on sustainability due diligenceCore elements of our

18、sustainability due diligence process include:Double Materiality Assessment Stakeholder engagement Risk assessment and management Governance on sustainability issues Policies,actions,metrics and targetspages 58 and 59 pages 10 and 11pages 60-63 page 79Disclosure throughout statementRisk management an

19、d internal controls over sustainability reportingpages 43-46,49-51,60 and 79Market position,strategy,business model(s)and value chainpages 2-3,5,12,16-17Interests and views of stakeholderspages 10 and 11Material impacts,risks and opportunities and their interaction with strategy and business model(s

20、)pages 58-63Description of the processes to identify and assess material impacts,risks and opportunitiespage 58Disclosure Requirements covered by the undertakings sustainability statementsHigh level disclosure points indicated throughout statementActions and resources in relation to material sustain

21、ability mattersDisclosure throughout statementMetrics in relation to material sustainability mattersDisclosure throughout statementTracking effectiveness of policies and actions through targetsDisclosure throughout statementTask Force on Climate Related Financial DisclosuresGrafton discloses against

22、 the TCFD framework where appropriate to avoid duplication.TCFD related content is indicated throughout the report with T56Grafton Group plcXX.X%Our sustainability strategysourced products and moreProviding safe,responsiblyand ProductCustomerReducing our impact on the environmentPlanetOperating our

23、business with integrityEthicsto thrive inside and outside our businessCreating the culture for peoplePeoplecommunities and customers we serveMaking a positive contribution to theCommunityOur approachOur sustainability strategy is supported by our five priority areas:The strategy aligns with the eigh

24、t UN Sustainable Development Goals that we can have the biggest impact on:Graftons sustainability strategy has five priority areas that address environmental,social and governance(ESG)issues that are important to our business,colleagues and customers.The table below shows how different material impa

25、cts link to the five pillars of the Grafton Strategy.While we are not required to comply with the corporate sustainability reporting directive(CSRD)for this 2024 statement,our reporting is evolving in response to its requirements to make it easier for stakeholders to navigate and make reporting more

26、 comparable.While European Sustainability Reporting Standard(ESRS)disclosures are referenced,this 2024 statement is not compliant with CSRD requirements.Sustainabilityat Grafton57Annual Report and Accounts 2024CorporateGovernanceSustainabilityStatementFinancial StatementsSupplementary InformationStr

27、ategicReportDouble materiality assessmentMateriality assessmentA double materiality assessment looks at sustainability issues through two lenses,the impact that a business has on society and the environment as well as the financial impact an issue may have on the businesss performance.This methodolo

28、gy aligned with the double materiality guidance published by the European Financial Reporting Advisory Group(EFRAG)in August 2023 taking into account the reporting requirements set out in the European Sustainability Reporting Standards(ESRS).We carried out extensive stakeholder engagement across cus

29、tomers,colleagues,suppliers,large shareholders,lenders,internal subject matter experts and governance committees.Feedback was scored,weighted and presented in a materiality matrix showing Graftons most material issues.The matrix was discussed and validated at the Board and then further refined.The f

30、inal matrix of the 2023 assessment is presented on page 59 and will be used to guide our reporting and strategy.We plan to review our materiality assessment to incorporate business changes and the updated EFRAG guidance.Steps in double materiality assessmentDraft list of issues developedExtensive re

31、search carried out into Grafton and its peers,initial consultation took place with key colleagues across the Group and a provisional list of material issues was drafted.Assess importance of issues to business,society and environmentSurveys were carried out with customers,colleagues and suppliers.Int

32、erviews were carried out with large shareholders and lenders.Workshops were carried out with subject matter experts at Grafton.Rank impactsImpacts were assessed using a scale of 1(very low impact)to 5(very high impact)and ranked in order of importance.Assess financial impactLevel of financial impact

33、 on business performance,profitability,growth and reputation was assessed using the same 1-5 scale.Present impact on matrixDraft matrix was developed and shared with governance committees.Validate and refine matrix in governance committeesBased on feedback the matrix was refined,issues were grouped,

34、and a final matrix was presented and signed off.We carried out a preliminary double materiality assessment in partnership with an external consultancy firm to identify our material impacts as well as ensuring that our strategy is focusing on the most important issues.58Grafton Group plcSocial and en

35、vironmental impact4.53.52.5 2.53.54.5Financial impact 561329784111210Linking material impacts to strategyESRS referenceESRS Topical IssuesStrategy linkImpact areasDisclosure referenceE1Climate changePlanet Climate changepages 64-68E5Resource use&circular economyCustomer&product Resource use and circ

36、ular economy Sustainable raw material sourcingpages 69-71 S1Own workforcePeople Equality,equity,diversity&inclusion Colleague health,safety&wellbeing Training&development Upskilling senior leaders on ESG Data privacy&data securitypages 72-76S2Workers in the value chainCustomer&product Ethics Respons

37、ible sourcing in supply chainpage 77S4Consumers&end usersCustomer&product Ethics Product safety&quality Privacy&data security IT&cyber security Health&safety*page 78G1Business conductEthics Regulatory compliance IT&cyber security Privacy&data securitypages 79 and 80*Whilst customer health and safety

38、 was not specifically called out in the top 12 material impact areas our approach to health and safety covers this important stakeholder group so it has been included as an area of disclosure in S4.Materiality matrixThe matrix below presents the findings of the double materiality assessment.It displ

39、ays Graftons top twelve material impact areas.Impacts were assessed using a 1 to 5 scale.A materiality threshold was applied,impact areas above 2.5 on both axes were deemed material and presented in the matrix.Our top 12 material impact areas1 Climate change2 Equality,equity,diversity&inclusion 3 Pr

40、oduct safety&quality4 Colleague health,safety&wellbeing5 Responsible sourcing in supply chain6 Upskilling senior leaders on ESG7 Training&development8 Resource use&circular economy9 Sustainable raw material sourcing1 0 Regulatory compliance11 IT&cyber security12 Privacy&data security59Annual Report

41、and Accounts 2024CorporateGovernanceSustainabilityStatementFinancial StatementsSupplementary InformationStrategicReportClimate change Resource use and circular economy Own workforce Workers in value chain Workers in value chain Consumer and end users Business conduct Impacts,risks and opportunitiesT

42、he tables below present sustainability impacts,risks and opportunities These impacts are relevant to different parts of our value chain indicated on the diagram below.E1 Climate change section includes all impact areas to ensure compliance with TCFD however impacts deemed major significance are indi

43、cated with an.E1 Climate change TWe assess the recurring or one-off impact of climate related risks using both financial measures,including revenue,profit,and cash,and non-financial,including management effort,regulatory compliance and impact on stakeholders.We have set numerical thresholds for each

44、 of these metrics to define significance.We would typically assess the likelihood of business risk materialising in the next three years whereas we monitor the likelihood of risks relating to climate change risks over the short(1-3 years),medium(3-10 years)and long-term(over 10 years).Our assessment

45、 of climate risks and opportunities considers a range of scenarios which were identified based on the guidance published by TCFD and the International Panel on Climate Change(IPCC):Rapid decarbonisation Government led move to a low carbon economy in the next 10 years with global temperature rises li

46、mited to at or below 1.5C(RCP 1.9 2.6)Moderate decarbonisation Business led/Government supported transition to a lower carbon economy over next 5-15 years.Global temperature rises limited to around 2C(RCP 3.4 4.5)Limited climate action Little or no concerted effort to reduce carbon emissions resulti

47、ng in global temperature rises in excess of 4C(RCP 6 8.5)The scenarios stated above are used to consider a range of possible outcomes for different climate risks and opportunities at Grafton over the short,medium,and long term.These time horizons have been set taking into account the Groups typical

48、planning approach(annual budget and five-year plan),useful life of inventories(all inventory over two years old,and a high proportion aged between one and two years,is fully provided for)and assets(majority of properties are on a short leasehold i.e.15 years).Based on these scenarios risks and oppor

49、tunities to the Group as recorded in the Group Sustainability and Climate Change Risk Register are set out in the table below,with their assessed significance to the Group under the 1.5C scenario and the timeframe over which we expect the risk/opportunity to materialise.The risks and opportunities a

50、pply across Graftons geographies and sectors.Impacts deemed of major significance under at least one of the three climate change scenarios are indicated with.See pages 52 and 53 for more information on TCFD.Significance keyMinorMajorModerateShort-termMedium-term Long-termTimeframe keyRisk typeImpact

51、 AreaRisk OpportunitySignificance(1.5C pathway)TimeframeTransitionalPolicyTaxation&compliance inc.CSRD&CBAM Costs of complying with regulations Competitive benefit of minimising liability Energy transition direct operations Rising energy cost of renewable energy Commercial advantage of investment in

52、 renewable energy self-generationSupply chain energy transition&taxationRising energy cost,taxation and compliance costs leads to increased purchasing costsActive engagement with supply chain on sustainability improves resilienceChanges in regulation impacting existing product rangeLegislation chang

53、es lead to obsolete or slow moving inventoryCommercial advantage of switching to more sustainable products earlyNet-zero transition Increased costs to deliver net-zero targets.Commercial advantage from early investment where appropriateValue ChainDownstreamUpstreamOwn operations E1 Climate change T6

54、0Grafton Group plcSignificance keyMinorMajorModerateShort-termMedium-term Long-termTimeframe keyRisk typeImpact areaRisk OpportunitySignificance(1.5C pathway)TimeframeTransitionalReputationInvestor pressureFailure to set and deliver net-zero targets results in reduced investor confidenceAttracting i

55、nvestment and financing from forward looking approachOther stakeholder pressure such as customers&suppliers Commercial impacts if Grafton doesnt meet expectations Commercial opportunities from positive sustainability positioning MarketConsumer preferences shift towards circular business models and m

56、ore sustainable choicesCommercial impact from failing to offer more sustainable choices,with clear traceability and communicationsAttract new customers and more revenue by offering more sustainable solutions(including circular economy)Consumer demand for climate resilient products increasesFailure t

57、o provide products related to climate adaptation leads to commercial impactCommercial opportunities from new products related to climate adaptationTechDecarbonisation technologies and new building techniques e.g.passive house,net zero emission buildings Significant changes to the construction&RMI in

58、dustry reduces demand for current product portfolioNew concepts and business opportunities provide more diverse revenue generation opportunitiesReliance on technology advancements to achieve emissions targets Costs associated with meeting targets,because technology does not develop swiftly enough or

59、 is not commercially viableCommercial opportunities from adopting technologies earlyPhysicalOperations disruptionDisruptions to operations and distribution of products as a result of flooding (or other extreme weather events)Loss of trading times and inability to distribute productsCompetitive advan

60、tage through resilience planningAsset damageDamage to property and stock as a result of flooding (or other extreme weather events)Significant cost to protect properties to prevent damage or repair costs following damage and write-off of stockCompetitive advantage through resilience planningSupply ch

61、ain riskDisruptions to supply chain as a result of extreme weather eventsCost increase due to reduced product supply and reduced revenue generation as a result of weather events impacting availabilityCompetitive advantage through resilience planningE1 Climate change continued T61Annual Report and Ac

62、counts 2024CorporateGovernanceSustainabilityStatementFinancial StatementsSupplementary InformationStrategicReportShort-termMedium-term Long-termTimeframe keyBusiness activityImpact areaRisk OpportunityTimeframeOwn operationsOperational waste Costs incurred to manage waste responsiblyOperational cost

63、s&taxation reduction through waste reductionDistribution/retailRaw material sourcing:timberFailure to meet deforestation regulation Commercial advantage from strong supply chain traceabilityDistribution/retail&manufacturingPackagingCosts incurred through packaging taxationCost reduction through mini

64、mising packaging useDistribution/retailCircular business modelsSee climate change aboveManufacturing Raw material useCosts incurred through inefficient use of raw materials and impacts of unsustainable raw material sourcingCost reduction through efficient resource use.Commercial advantage with deman

65、d for traceabilityE5 Resource use and circular economyImpacts,risks and opportunities continuedS1 Own workforceImpact areaRiskOpportunityTimeframeColleague engagementNeglecting colleague engagement can lead to retention issues and difficulty attracting talent,affecting business performance and innov

66、ation.Focusing on engagement boosts retention and attracts top talent,driving productivity,innovation,and a positive workplace culture.Equality,equity,diversity&inclusion Poor diversity and inclusion practices can harm retention,recruitment,and lead to legal and compliance issues.Embracing diversity

67、 and inclusion enhances creativity and decision-making,positioning us as an attractive employer and improving business performance.Colleague health,safety and wellbeingLack of focus on health and safety can lead to underperformance,retention issues,and regulatory non-compliance,damaging our reputati

68、on.Prioritising well-being enhances our reputation,attracts talent,and fosters a productive workforce,contributing to business success.Training&development(including ESG)Lack of investment in training leads to underperformance and poor retention,hindering the delivery of strategic goals.Investing in

69、 training boosts performance and retention,making us an attractive employer and fostering continuous improvement.Data privacy&data securityWeak data controls can erode trust,leading to retention issues and legal repercussions.Strong data security enhances trust and loyalty,attracting talent and safe

70、guarding our reputation.Pay,benefits and rewardsInadequate compensation impacts retention,recruitment,and colleague morale.Competitive packages attract and retain talent,supporting wellbeing and strengthening our employer brand.Talent,retention,recruitmentPoor talent management and recruitment lead

71、to leadership gaps and impacts business growth.Developing future leaders ensures continuity,enhances resilience,and fosters a culture of advancement and retention.62Grafton Group plcShort-termMedium-term Long-termTimeframe keyS2 Workers in the value chainImpact areaRisk OpportunityTimeframeResponsib

72、le sourcing in supply chainsWorking with trading partners whose activities result in negative environmental or social impacts.Failure to have in place a strong due diligence process that meets regulations and protects the environment and people through the supply chainHigh sourcing standards and str

73、ong due diligence mean that we have a reputation as a trusted partner and distributor that helps to strengthen security through the supply chainImpact areaRisk OpportunityTimeframeHealth&safetyRisk of personal injury or loss of life of colleagues,suppliers,customers or members of the public during b

74、ranch operations(including delivery)due to unsafe working practices.Also failure to comply with health&safety regulationHigh standards for health and safety compliance enhance reputation as a responsible organisation with our colleagues,customers and suppliersProduct safety&qualityInadequate product

75、 safety standards and quality assurance processes result in risk of selling unsafe or poor quality products which impacts reputation and could put customers at riskHigh product safety and quality standards enhance reputation as a trusted distributor and manufacturer with customersPrivacy,data,IT&cyb

76、er securityRisk that external or internal parties will try to gain unauthorised access into systems to deliberately disrupt business,steal information or commit fraud,resulting in financial loss,impact on reputation with significant management effort to recoverStrong information security and data pr

77、otection controls enhance our reputation as a trusted and responsible organisation with colleagues,customers,and suppliersS4 Consumers and end usersImpact areaRisk OpportunityTimeframeRegulatory complianceRisk that non-compliant practices by individual colleagues or businesses result in significant

78、penalties and reputational damage for breach of relevant legislationA track record of compliance with regulatory requirements,enhances reputation as a trusted and responsible organisation with colleagues,customers,suppliers,and regulatorsBribery&corruption Bribery and corruption by colleagues or thi

79、rd parties results in financial loss to the business and reputational damageRobust anti-bribery controls and strong ethics enhance our reputation as a trusted and responsible organisationPrivacy,data,IT&cyber securitySee consumers and end users aboveG1 Business conduct63Annual Report and Accounts 20

80、24CorporateGovernanceSustainabilityStatementFinancial StatementsSupplementary InformationStrategicReportESRS E1:Climate Change E5:Resource Use and Circular EconomyStrategy linkage Planet Customer and ProductUN SDGEnvironmental disclosuresEnvironmental disclosures IntroductionIts estimated that build

81、ings account for 40 per cent of the energy usage across the EU and 36 per cent of GHG emissions,which mainly stem from construction,usage,renovation and demolition.GHG emissions from material extraction,manufacturing of construction products,as well as construction and renovation of buildings are es

82、timated to be 5-12 per cent of GHG emissions.As a result,all players in this sector have a responsibility to take action to reduce emissions.The stakeholder engagement carried out with customers,colleagues,investors,lenders and suppliers for our double materiality analysis showed that climate change

83、 is the key environmental concern.PoliciesOur environmental policy incorporates our commitment to tackling climate change.The policy is available at ActionsOwn operations Actions and plansThis year Grafton has remained focused on implementing initiatives that will reduce our GHG emissions to ensure

84、progress towards our SBTi targets.Key decarbonisation levers for Scope 1 and 2 are:Electricity and energy savings Grafton has increased its acquired renewable electricity by 14 per cent in 2024 to a total of 94 per cent and we plan to achieve 100 per cent in the coming years.An eight per cent reduct

85、ion in electricity consumption was achieved compared to 2023 through market related decline in activity levels as well as implementing a range of efficiencies including energy management systems and equipment efficiencies.This has been alongside our work on electrification of premises,moving away fr

86、om fossil fuel sourced heating such as natural gas and heating oil.Grafton continues to install Solar PV arrays across the estate,with 10 new installations and the expansion of six existing arrays in EcoVadis offers a unified approach to assess suppliers and offers a variety of materials for our sup

87、pliers,including action plans and educational materials.We continue to partner with manufacturers to drive investment in low emission technologies and products.This is essential to decrease the emissions from goods we sell to our customers and the emissions the product may produce over its lifetime.

88、2024.We produced over 170,000 kWh of renewable electricity some of which was fed into the local grid.There are plans for one expansion and eight new installations for 2025.The Energy Savings Opportunity Scheme(ESOS)was conducted for all sites in Great Britain.A range of energy savings initiatives we

89、re identified from the process,including but not limited to:energy management;capital investment;controls;training and data quality,with anticipated savings of over 2,000 MWh.Grafton will continue to implement initiatives before the next phase of the scheme.Vehicle fleet In 2024 efforts to move to a

90、n alternative vehicle fleet continued with the increased uptake in BioCNG,HVO and electric vehicles across the fleet.HVO use in our commercial fleet increased by 74 per cent compared to 2023,saving more than 1,800 tCO2e.The transition to an alternatively fuelled vehicle fleet will continue as part o

91、f our transition plan,with increased uptake of HVO and move to electric vehicles where feasible across the fleet.Value chain Actions and plansData availability and accuracy Over 98 per cent of Graftons emissions are indirect emissions generated in our value chain.Grafton worked to improve its Scope

92、3 calculation process in 2024 by improving the accuracy of purchasing and associated emissions factors.In conjunction with supplier engagement Grafton plans to further improve the accuracy of value chain emissions by obtaining and applying product specific GHG emissions data.With the introduction of

93、 the Carbon Border Adjustment Mechanism(CBAM)within the markets Grafton operates the importance and availability of carbon data from our suppliers is improving.Supplier Engagement Our work with EcoVadis will allow suppliers to be assessed and will provide a route to engage with suppliers on their en

94、vironmental performance including climate change.E1 Climate changeNet-zero Science Based TargetsThe Science Based Targets Initiative has validated that the science-based greenhouse gas emissions reductions targets align to the SBTi Corporate Net-Zero Standard.SBTi has classified Graftons scope 1 and

95、 2 target ambition as in line with a 1.5C trajectory:Overall Net-Zero target:Grafton Group plc commits to reach net-zero greenhouse gas emissions across the value chain by 2050.Near-term targets:Grafton Group plc commits to reduce absolute scope 1 and 2 GHG emissions 48.5 per cent by 2030 from a 202

96、1 base year.Grafton Group plc also commits to reduce absolute scope 3 GHG from use of sold products covering sold fossil fuels 42 per cent within the same timeframe.Grafton Group plc further commits to reduce all other absolute scope 3 GHG emissions 42 per cent within the same timeframe.Long-term ta

97、rgets:Grafton Group plc commits to reduce absolute scope 1 and 2 GHG emissions 90 per cent by 2050 from a 2021 base year.Grafton Group plc also commits to reduce absolute scope 3 GHG emissions 90 per cent within the same timeframe.64Grafton Group plc64Grafton Group plcOur target205090%reduction in a

98、bsolute Scope 1&2 GHG emissions vs 202154,000 tCO2e0 tCO2etCO2e market basedBase yearOur target20302030205048.5%reduction in absolute Scope 1&2 GHG emissions vs 20212021Achieved202438.6%reduction in absoluteScope 1&2 GHG emissions vs 2021Transition Plan Graftons climate transition plan follows the p

99、rinciples of the Transition Plan Taskforce disclosure framework Ambition,Action,Accountability TAmbitionFoundations Graftons targets have been validated by the SBTi and are aligned with the 1.5C trajectory(page 64).Our double materiality assessment showed that our stakeholders,colleagues,customers a

100、nd suppliers regard climate change as their top priority.Graftons business model and value chain are presented on pages 17 and 20.As a distributor,retailer and manufacturer of products for the building industry there are important changes that will need to take place over the coming 25 years.Over 98

101、 per cent of Graftons GHG emissions are Scope 3,the vast majority of which are in the manufacture and use of the products that we sell.To drive the changes that are needed,Grafton will work extensively with suppliers and customers.In the shorter term we will focus on improved data collection,increas

102、ing the proportion of suppliers with Science Based Targets and encouraging more suppliers to set them with support from EcoVadis.In the longer term there will be a focus on alternative products,materials and energy usage for products as well as scaling up circular business models where possible.Key

103、assumptions and external factors Financial growth the targets are based on absolute emissions reductions therefore organic business growth will be captured in the emissions reduction trajectory.However,as a business that acquires and divests,we have published a recalculation policy to take into acco

104、unt any significant changes in the business().Policy developments all businesses require policy support to enable them to deliver such stretching targets.It will be important that governments continue to drive renewable electricity,support innovations in alternative fuels and phase out high impact p

105、roducts such as boilers.Industry innovations and developments builders merchants rely on large industries such as chemicals,steel and cement to provide the products that customers such as builders,DIY enthusiasts and developers need.These large industries have plans in place to reduce their emission

106、s and have been subject to legislation over time,therefore delivering their ambitions will be an important contributor to Grafton achieving our targets.Technological advancements longer term,technological advancements will be necessary in how buildings are constructed and the technology used to powe

107、r them as well as in the transport industry for heavy goods.We will work with our supplier partners where possible to trial and promote these technologies,but much of the innovation will take place within our supply chain.Data improvements As a business Grafton sells hundreds of thousands of product

108、s therefore the calculation of Scope 3 emissions is subject to assumptions.As Grafton improves the monitoring of its emissions and suppliers improve the quality of the information they report on their products we will likely need to recalculate our emissions(in accordance with the base year recalcul

109、ation policy).Scope 1&2 Transition Plan Gas heatingInitial focus on increased efficiency and long-term transition to alternative forms of heating.Commercial VehiclesPhased transition to electric,bio-fuels or other alternative technology in the long term.Car FleetSwitch to alternative fuels and suppo

110、rt this move with the installation of charging points.LPGInitial focus on increased efficiency in manufacturing process and long-term working with suppliers to develop technological/efficiency innovations.ElectricityMove to 100 per cent certified renewable energy and increase solar production capaci

111、ty for new and existing sites.Continue to improve monitoring of our energy use and increase efficiencies.65Annual Report and Accounts 2024CorporateGovernanceSustainabilityStatementFinancial StatementsSupplementary InformationStrategicReporttCO2eOur target205090%reduction in absolute Scope 3GHG emiss

112、ions vs 20212.9mn tCO2e0 tCO2eBase yearOur target2030205042%reduction in absolute Scope 3GHG emissions vs 20212021Achieved202313.7%reduction in absolute Scope 3GHG emissions vs 20212030Environmental disclosures continuedClimate change continuedScope 3 Transition Plan Goods for resale Collate accurat

113、e product level emissions data from Environmental Product Declarations or other Life Cycle Analysis Increase proportion of products sourced from suppliers with Science Based Targets Prioritise reductions in categories that make the biggest contributions Increase circular business offering to decoupl

114、e sales from emissions Use of sold products Offer alternatives to energy intensive products e.g.boilers Improving efficiency of energy using products as well as reducing emissions associated with use through increased renewables in the grid OtherTransition Plan continued ActionImplementation strateg

115、yThe Executive Sustainability Committee ensures that GHG emissions targets are embedded in the business planning and operations of the business.In 2024,the Committee was consulted on the targets and the transition plans,and the priority areas are displayed in the infographics on pages 65 and 66.The

116、actions are separated into Scope 1 and 2,and Scope 3 so that the relevant teams across each business unit can take ownership for the delivery.Grafton includes climate change in the budgeting process to ensure that financial impacts of decisions are effectively quantified.Engagement strategy Engageme

117、nt across Graftons value chain and especially with suppliers and customers will be an essential part of achieving the targets.Suppliers will be required to share detailed data on the products supplied and be encouraged to set Science Based Targets.Collaboration to bring new products to market will a

118、lso be key.Graftons supply chain due diligence process will be extended to capture more detailed information on GHG emissions.Grafton collaborates across the industry through groups such as the Builders Merchant Federation.These forums provide an opportunity for information and views to be shared wi

119、th other building materials distributors,suppliers,and leading industry figures.As part of our sustainability strategy we consult key stakeholders including customers,suppliers,shareholders and lenders.This is used to gain feedback on their priority areas and the actions that they would like to see

120、Grafton taking.Training of colleaguesThe Group sustainability team communicate extensively with colleagues on climate change,targets and reduction strategies.In 2024 sessions have been held at Board level,with the Executive Sustainability Committee and at sustainability review meetings with business

121、 units.AccountabilityGovernanceClimate Change governance follows the sustainability governance process set out on page 79.66Grafton Group plcGreenhouse gas emissions reporting Energy consumption Scope 1&2Unit20212022202320242024performance on 20232024performance on base yearScope 1*tCO2e40,718.938,3

122、28.032,847.831,250.7(4.9%)(23.3%)Commercial vehiclestCO2e14,173.413,824.711,402.311,300.3(0.9%)(20.3%)Gas heatingtCO2e7,086.05,902.15,008.05,335.16.5%(24.7%)Manufacturing(LPG)tCO2e13,033.914,286.412,553.310,676.8(14.9%)(18.1%)Scope 2 location-basedtCO2e15,143.813,900.712,511.011,191.4(10.5%)(26.1%)S

123、cope 2 market-based*tCO2e13,182.15,816.85,086.71,841.5(63.8%)(86.0%)ElectricitytCO2e11,763.64,683.54,344.21,237.8(71.5%)(89.5%)District heatingtCO2e1,414.81,094.4658.2469.5(28.7%)(66.8%)Scope 1&2 location-basedtCO2e55,862.752,228.745,358.742,442.1(6.4%)(24.0%)Scope 1&2 market-basedtCO2e53,901.044,14

124、4.837,934.533,092.2(12.8%)(38.6%)Scope 1&2 market-based intensitytCO2e/m Revenue25.519.216.414.7(10.2%)(42.5%)*major sub-categories of Scope 1 and 2 data presented in the table.Small contributions from electric vehicles,forklift trucks and fugitive emissions are incorporated in the totals.Scope 3Uni

125、t2021202220232023 performance on 20222023 performance on base yearScope 3tCO2e2,939,708.32,613,773.32,535,912.7(3.0%)(13.7%)Goods for resaletCO2e1,158,532.11,121,718.71,088,381.5(3.0%)(6.1%)Use of sold productstCO2e1,536,871.71,231,972.61,194,776.1(3.0%)(22.3%)Other categoriestCO2e244,304.6260,082.0

126、252,755.1(2.8%)3.5%Unit20232024%of total energy consumptionEnergy consumptionMwh208,724.7188,629.4100%Fossil fuelsMwh164,062.0136,690.378.6%Renewable sourcesMwh44,662.751,939.121.4%FuelMwh5,066.58,593.32.4%Self-generatedMwh510.5883.40.2%AcquiredMwh39,085.742,462.318.7%67Annual Report and Accounts 20

127、24CorporateGovernanceSustainabilityStatementFinancial StatementsSupplementary InformationStrategicReportEnvironmental disclosures continuedClimate change continuedWe report our emissions as per the methods set out in the GHG Protocol.Under the GHG Protocol,emissions are categorised into Scope 1,2,an

128、d 3.We report our emissions in tCO2e and on emissions from all entities over which we have operational control.For 2024 environmental data excludes data from 2024 acquisition of Salvador Escoda.Please see our“Scope 1 and 2 GHG Criteria”and“Scope 3 GHG calculation methodology”available at .Grafton st

129、ates that recalculations to the base year may occur given our business model.For more detail,please see“GHG Recalculation Policy”available at .Scope 1 emissions Direct GHG emissions from operations,this includes emissions from our vehicle fleet,fugitive emissions,combustion of fuels for heating and

130、manufacturing processes.Scope 2 emissions Indirect GHG emissions from electricity,heat and steam,purchased and consumed by Grafton Group.Location-based emissions are based on national grid average emission factors for defined locations.Market-based scope 2 emissions refer to indirect GHG emissions a

131、ssociated with purchased electricity,heat and steam through procurement of contractual instruments such as Energy Attribute Certificates and Guarantees of Origin from sources such as wind,hydro,solar and biomass.For sites without such contractual agreements and for other scope 2 energy types in the

132、absence of supplier specific emission factors and/or residual mix emission factors,the national average emission factor has been applied.Total energy consumption from fossil sources Primary energy consumption from crude oil petroleum products,and natural gas,as well as consumption of externally purc

133、hased secondary non-renewable energy such as electricity,heat,steam and cooling.Energy consumption is based on meter readings and/or invoices.Considering the ESRS requirements,we have enlarged the scope of the total energy consumption metric to include all entities under operational control,includin

134、g fuel consumption in leased vehicles.Total energy consumption from renewable sources Wood,biogas and externally purchased electricity from renewable sources,such as wind,solar,hydropower,biomass or biogas,as defined in the contractual agreements.Consumption is based on meter readings and/or invoice

135、s and complemented with data on renewable energy certificates for each site.GHG intensity Total energy consumption/total GHG emissions per million net revenueScope 3 emissions We report our Scope 3 emissions using the following Scope 3 accounting principles:Relevance Our Scope 3 inventory contains G

136、oods for Resale,Goods Not for Resale,Use of Sold Products,Capital Goods,Operational Waste,Fuel and Energy Related Activities,Upstream Transport and Distribution,Downstream Transport and Distribution,Processing of Sold Goods,Business Travel,Employee Commuting,Downstream Leased Assets,End of Life Trea

137、tment.Completeness Our Scope 3 inventory reflects our GHG emissions appropriately.Upstream Leased Assets,Franchises and Investments are not relevant for Grafton Group and are therefore excluded from the inventory.Consistency We have calculated our Scope 3 emissions for 2021,2022 and 2023 with consis

138、tent methodologies and reporting boundaries.This lends us to performing trend analysis and monitoring emission reduction progress over time.Transparency Our Scope 3 methodology and assumptions can be found at .Accuracy During the calculation process,source data undergoes quality checks and calculati

139、ons are reviewed by a third-party consultancy firm to ensure credibility in the end emission analyses.The latest data for Scope 3 is 2023.Accounting principles GHG emissions68Grafton Group plc202420232022202153.6%59.5%56.1%61.4%202420232022202139.0%37.2%42.5%37.9%20242023*2022202192.6%96.6%98.6%99.3

140、%20242023202220217.36.66.06.2E5 Resource use and circular economyCareful resource management is central to our sustainability programme.Our focus areas include operational waste management,packaging,raw material sourcing and circular business models.Impact AreaPolicy/Approach Metrics/Targets Operati

141、onal waste Environment Policy Tonnes operational waste Operational waste diverted from landfill PackagingApproach specific to operational market Report packaging data as per regulations Raw material sourcing:timberDeforestation Policy Timber certified through internationally recognised schemes Due d

142、iligence processes in place in all relevant business unitsManufacturing:raw material useDeforestation Policy Supplier engagement Timber certified through internationally recognised schemes Restoration plans in place for aggregate sitesCircular business modelsApproach specific to each business unit P

143、ilot circular business opportunities by 2025 Promote products to customers with sustainability attributes by 2030Operational wasteGrafton works with waste management companies to monitor waste,manage it responsibly and look for opportunities to reduce it.Across the Group total waste generated in our

144、 operations remained consistent with 2023 data.In partnership with our waste management companies,teams work to divert the waste in our own operations from landfill and in 2024 achieved a 99.3 per cent diversion rate.We continue to look for opportunities to replace plastic wrap used to distribute pr

145、oducts with recycled alternatives as well as trying to reduce the amount used where possible by using collapsible boxes,moving to cages or strapping products together.However,all alternatives need to be carefully assessed with our colleagues safety in mind as many of our products are heavy and safet

146、y is of the utmost importance.Packaging dataAll businesses report packaging data as required by legislation in their country of operation.The biggest change to this system has been taking place in the UK,where business units have continued to report against the existing packaging scheme and plastics

147、 tax regulations whilst also preparing for the new extended producer responsibility system.Business units have been working closely with suppliers to collect the data required on packaging.We have also been working to improve the packaging that we use.Business units have also focused on increasing t

148、he recycled content of plastic wrap.Accounting principlesOperational waste includes all waste generated in our operations excluding Salvador Escoda.The data is collated via 3rd party reports from waste providers detailing disposal methods of waste streams.Operational waste data Total recycling rate(

149、per cent)Total recovery rate(per cent)Waste diversion from landfill(per cent)Total waste(tonnes per m revenue)*Recalculated following improved data collection.Operational Waste Criteria is available from 69Annual Report and Accounts 2024CorporateGovernanceSustainabilityStatementFinancial StatementsS

150、upplementary InformationStrategicReportEnvironmental disclosures continuedResource use and circular economy continuedRaw material inflowsMortarCement72,700 tonnesCPI Euromix operate nine manufacturing sites across the UK sourcing cement,sand and additives from trusted suppliers to produce the produc

151、t and their manufacturing processes follow the following standards:-ISO 9001:Quality Management System-ISO 14001:Environmental Management System-BES 6001:The Framework Standard for Responsible Sourcing.Attaining these certificates demonstrate CPI Euromixs commitment to providing high quality product

152、s using raw materials that are sourced responsibly and following a manufacturing process designed to minimise impact on the environment.CPI Euromix received an Excellent performance rating for their BES 6001 certification and use this framework when considering new suppliers.CPI Euromix has been cer

153、tified against ISO 9001 and ISO 14001 since 2016,and through regular auditing across all locations and regularly reviewing internal management systems maintain high-quality product manufactured responsibly.CPI Euromix has also worked with their cement suppliers over time to ensure that GHG emissions

154、 associated with this raw material are reduced and the sand suppliers have strong restoration plans in place for all extraction sites.Sand459,400 tonnesStaircasesTimber4,143 tonnesStairBox uses state of the art technology to design and manufacture made-to-measure products.This ensures that minimal w

155、aste is generated in the installation of the product.Their sales teams have extensive training to support customers to design the products to the correct specifications.StairBox operates a series of quality inspections throughout the manufacturing process,prior to a final full quality sign-off prior

156、 to loading and delivery.They have a chain of custody timber sourcing process to ensure that the timber used is responsibly sourced.99.6 per cent of StairBox timber is certified by internationally recognised timber certification schemes.The certification process provides confidence that timber sourc

157、ing is not contributing to illegal deforestation,that strong labour standards are met.The chain of custody audit ensures full traceability of all materials from initial source to end user as well as checking policies and procedures.Raw material sourcingGaining greater traceability of priority raw ma

158、terials is an important focus.Timber is a key raw material for a number of the distributors within the Group and for StairBox.The Group Deforestation Policy outlines the legal requirements,responsible sourcing and due diligence guidelines.In 2024 the focus has been on preparing for the EU Deforestat

159、ion regulation.Identifying products in scope,reaching out to suppliers,planning the IT systems needed to monitor data and establishing the formal due diligence processes required to meet the requirements.Business units have also continued to promote the certification of the products sold through int

160、ernationally recognised certification schemes.Percentage of Selco timber certified to internationally recognised standards99.1%Percentage of StairBox timber certified to internationally recognised standards99.6%Raw materials for manufacturing Our manufacturing businesses produce ready mix and bagged

161、 mortar products,bespoke staircases and windows.The manufacturing process is different,but the processes have been developed to minimise wastage,source raw materials responsibly and produce quality products that are made to last.70Grafton Group plcCircular business modelsOur business units are inves

162、tigating and trialing different circular business models.They fall into a number of categories.1.Products as a serviceChadwicks Sam Hire brand provides high quality construction equipment on a rental basis to customers in the ROI.At any one time it has approximately 6,500 pieces of equipment from di

163、ggers,dumpers,generators,scissor and material lifts to concrete cutting saws.The operation has expanded from 15 branches to approximately 23 branches over the past nine years and a new hire department opening is planned for the Chadwicks Gorey branch in 2025.Two to three team members run the operati

164、on in each branch providing rental and maintenance services.TG Lynes also operate a plant rental service.In 2024 Selco launched a partnership with HSS Hire to offer customers tool and equipment rental options from their stores.As of February 2025,19 Selco stores offer the HSS rental service.2.Sale o

165、f spare parts For IKH the spare parts and rental offerings have been central to its business model for over 20 years.Spare parts are offered for tools,large machinery and more than 2,000 tractor models which are either purchased from suppliers or farmers and companies that sell second hand parts.Mai

166、ntenance and repairs of rental products are performed in-house,maximising the life of each product.3.Take-back schemes Selco is currently conducting a phased rollout period for pallet collection across eight branches.This involves sending old pallets to be repaired and reused from multiple locations

167、 using a third-party.This is a pilot project to centralise the repair process at one location.Selco employs a similar process with plastic wrap,where each branch sends any clear plastic wrap to a central distribution center for further sale.This process ensures that all plastic wrap is recycled rath

168、er than sent to landfill.Our Netherlands businesses,Isero and Polvo have a strong focus on battery recycling and tool repairs.Both businesses have collection points in every branch for customers to take used batteries,which are collected by a third party and recycled.Polvo offer a service where cust

169、omers take tools to their local branch,and they have the option to be repaired instead of being taken to landfill.4.Repair&maintenance Isero are innovating in the refurbishment space by working with one of their value chain partners on a sanitary ware refurbishment scheme collecting,refurbishing and

170、 reselling certain products and working to calculate the associated GHG emissions savings.Water management Water is not a material issue within Graftons operations as the branches and manufacturing facilities are not large users of water.However,Grafton is monitoring its water usage to ensure that t

171、his resource is used as efficiently as possible.Biodiversity There are various initiatives in place across the Group that are designed to address biodiversity as well as other environmental issues.Branches work to support and promote biodiversity at a local level.Chadwicks for example is a member of

172、 the All Ireland Pollinator Plan implemented by the National Biodiversity Data Centre.As part of this membership biodiversity projects are introduced to stores during refurbishments.The timber sourcing programme is promoting responsibly sourced timber including internationally recognised certificati

173、on which are tackling deforestation.We have a commitment to work with our aggregate suppliers to ensure that all extraction sites have restoration plans in place.CPI Euromix has engaged with all of its quarries on this topic.Pollution Graftons manufacturing businesses have policies and procedures in

174、 place to monitor,manage and minimise any emissions associated with the manufacturing process.CPI Euromix has baghouse technology on all sites which collects dust,and removes particulate matter and harmful gases from the manufacturing process.StairBox uses a bag filter to collect and store dust in a

175、 silo which is regularly maintained.There are alarms installed to alert the teams in the case of a breach of the limits as well as a response plan in place.For the distribution businesses,air quality management associated with the fleet is important.Selco have invested in CNG fuelled vehicles in met

176、ropolitan areas as they emit lower amounts of particulate matter than standard diesel fuelled vehicles.Additional environmental disclosures71Annual Report and Accounts 2024CorporateGovernanceSustainabilityStatementFinancial StatementsSupplementary InformationStrategicReportSocial disclosuresSocial d

177、isclosures S1 Own workforce Our colleagues are integral to our success as a business and we are committed to fostering an environment where everyone can thrive.Our people strategy prioritises wellbeing,inclusivity,and professional development and is supported by comprehensive policies.The Group HR D

178、irector,along with HR leaders in each business unit,ensure the effective delivery and promotion of our people strategy and colleague engagement initiatives across each of our businesses.The Group-wide HR forum serves as a platform to collaborate and share best practice,and monitors key metrics to en

179、sure continuous improvement.Overview and Action taken on policy areas in 2024TopicPolicy/ApproachMetrics/Targets Colleague engagement Colleague engagement surveys Workplace forums Non-Executive Director engagement Colleague engagement platforms Speak Up PolicyEngagement surveys at least every two ye

180、ars.Equality,equity,inclusion&diversity Group Equality,Equity,Diversity,and Inclusion PolicyAlignment with FTSE Women Leaders Review on gender diversity and the Parker Review on ethnic diversity.Year-on-year increase in the number of females across all levels in our businesses.Percentage increase in

181、 the number of females in a defined senior management group.Colleague health,safety and wellbeing Health and Safety Policy Wellness at Work PolicyLost time injury frequency rate.Lost time injury severity rate.Training and Development BU-specific development opportunities,such as apprenticeship,train

182、ing programmes,mentorship,and career advancement resourcesAverage hours of training per colleague annually which is measured at business unit level.Pay Benefits and Rewards BU specific reward incentives to promote commitment and reward achievementCompliance with future EU pay transparency legislatio

183、n.All colleagues receive at least one per cent above the local national minimum wage.ESRS S1:Own workforce S2:Workers in the value chain S4:consumers and end usersStrategy linkage People Customer and Product EthicsUN SDG72Grafton Group plcColleague engagement The success of our business is closely a

184、ligned with our corporate culture and the contribution and commitment of each of our colleagues.We recognise the fundamental importance of colleague engagement and talent management to the future growth of the Group.We seek to ensure that all colleagues are fully engaged in their work and with the w

185、orkplace.We encourage their active participation in decision-making processes.Workplace forums,such as works councils and colleague committees,serve as platforms for discussing important work-related matters.These forums allow colleagues to present ideas and questions to business leaders who conside

186、r their viewpoints and concerns.The forums aim to foster trust and confidence between colleagues and the Company and play a significant role in our engagement strategy and diversity strategies.Colleague engagement surveys provide us with valuable insights into colleague satisfaction and sentiment.Co

187、lleagues across our business can participate in formal engagement surveys at least once every two years.Survey results are shared with management teams and colleagues,and local action plans are developed to improve engagement.The results and action plans are discussed with business unit management,a

188、nd turnover and retention rates are continuously monitored.The engagement survey results are also shared with the Board.Non-Executive Directors attend colleague forum meetings at larger businesses in the UK and Ireland at least once a year,allowing them to gather the views of colleagues and learn ab

189、out their businesses directly.The Non-Executive Directors then share this information with the Board,providing a colleague perspective to assist in decision-making and considering the views of this important stakeholder group.Where directors cannot attend due to language barriers,a summary of the di

190、scussion is provided.Grievance ProcessFormal grievance and disciplinary procedures across all our businesses serve to protect colleagues interests and ensure grievances in the workplace are addressed objectively and provide an effective resolution of colleague concerns.Our aim is to handle grievance

191、s promptly and fairly to maintain a positive workplace environment and to prevent issues from escalating.Our SpeakUp reporting service,managed by a third party,allows colleagues to report concerns confidentially and anonymously.Confidential Feedback All our businesses have grievance and whistleblowi

192、ng processes,including the SpeakUp reporting service,described in further detail on page 82,ensuring that colleagues have a facility for anonymous reporting and protection against retaliation.SpeakUp reports are documented and reviewed,with an annual summary presented to the Audit and Risk Committee

193、.Social Bargaining,Collective Bargaining and Freedom of AssociationWe respect the right to freedom of association and collective bargaining for all our colleagues and maintain a neutral stance regarding their choices to join or not join a trade union.Colleagues are entitled to representation by trad

194、e unions or other elected representatives,in line with local regulations.Equality,equity,inclusion&diversity(EEDI)We strive to create a workplace where everyone feels valued,respected,and empowered to contribute.The Board receives regular updates on the progress of our equality and diversity initiat

195、ives.Our Group-wide EEDI policy ensures a consistent approach across the entire business.Diversity and Inclusion working groups assist our businesses to foster an inclusive culture.Our objective is to maintain a workforce that represents the communities in which we operate.All our colleagues are exp

196、ected to support diversity,promote fair and respectful treatment of everyone,challenge unacceptable behaviours and must comply fully with all legislation relating to equality and diversity in their location.Recruitment process ensures no discrimination We have objective and robust processes for recr

197、uitment and selection in each of our businesses and we monitor diversity at each stage of the process.Actions to prevent workplace harassmentEach of our businesses has a Dignity at Work Policy to help colleagues identify potential bullying and harassment and to provide them with resources to address

198、 these issues should they arise.In our UK businesses,we have implemented measures to ensure all stakeholders are informed of our policy of zero tolerance on third party harassment.Support for vulnerable groups Many of our businesses have specific womens groups and inclusion networks to ensure that t

199、he views of all colleagues are captured and to drive our diversity agenda.Our businesses support and leverage the expertise of a wide range of organisations focused on increasing equality,diversity,and inclusion.Grafton is a signatory to The Social Mobility Pledge,and is also a member of the Valuabl

200、e 500.CPI Euromix is a platinum member of Women into Construction which promotes gender equality in construction.All our businesses in the UK and Ireland have at least silver status with the National Centre for Diversity,with Woodies attaining gold status.Actions to promote diversity in leadershipWe

201、 were very pleased to increase the number of women in leadership from 13.0 per cent to 15.0 per cent in 2024.This progress reflects our commitment to fostering an inclusive workplace that values diverse perspectives and promotes equal opportunities for all colleagues.We have implemented recruitment

202、strategies to attract a diverse pool of candidates.Additionally,our benefits programs have been expanded to support work-life balance and wellbeing.Our inclusion networks and colleague forums offer opportunities for employees to actively contribute to our diversity initiatives.73Annual Report and Ac

203、counts 2024CorporateGovernanceSustainabilityStatementFinancial StatementsSupplementary InformationStrategicReportSocial disclosures continuedOwn workforce continuedActions to promote the inclusion of colleagues with disabilitiesWe are committed to fostering an inclusive and safe workplace.We make ne

204、cessary adjustments to our physical environment to support colleagues with disabilities,ensuring that all colleagues can work in a secure and accessible setting.We are committed to ongoing improvement in this area,ensuring that our workplace complies with health and safety regulations and promotes i

205、nclusivity and accessibility.Initiatives include:Accessibility improvements:Upgrading our facilities to include automatic doors,and accessible restrooms,ensuring ease of access for colleagues with mobility challenges.Ergonomic workstations:Customising workstations to meet the specific needs of colle

206、agues with disabilities,promoting comfort and reducing the risk of injury.Assistive technology:Investing in technologies,on our external websites to support users with visual impairments.Monitoring equal payMonitoring pay rates among colleagues is an important step to ensure that everyone is fairly

207、rewarded for their work and contribution to our business.We continuously review ways to address any differences in pay and work hard to support career development and progression for all colleagues.Our businesses in the UK and Ireland that are in scope for gender pay reporting under local legislatio

208、n publish their gender pay reports on their websites.The Group also reports gender diversity data under the FTSE Women Leaders Review and the Parker Review.We were pleased to have improved our ranking amongst the FTSE 250 from 101 to 90 in the 2024 FTSE Women Leaders Review.Total colleaguesTotal hea

209、dcount at the year end 10,003Breakdown by CountryUnited Kingdom4,016Ireland3,133Netherlands1,635Finland432Spain 787The data below includes colleagues employed in Ireland,the UK,the Netherlands and Finland.Colleagues by contract type Permanent95%Temporary5%Full-Time76%Part-Time24%Colleagues by gender

210、 Male72%Female28%74Grafton Group plcColleagues by age 5031%Gender distribution in management 20242023Number%Number%Board of DirectorsFemale338%333%Male562%667%Group Management Team(GMT)Female240%120%Male360%480%Senior ManagementFemale1032%3328%Male2168%8472%ManagementFemale7615%6813%Male43285%45687%

211、Accounting PrinciplesThe data above includes the members of the Board of Directors of Grafton Group plc,the GMT,Senior Management and Management as at 31 December 2024 and 31 December 2023.The membership of the Board and the GMT is set out on pages 82 to 83 and 84 respectively.Senior Management is t

212、he group reported for the purposes of the FTSE Women Leaders Review.In 2024 and for future years this comprises the GMT and their direct reports.In 2023 this was based on a wider group of colleagues.Management comprises the GMT,certain Group leadership roles,Business Unit CEOs and their executive co

213、mmittees,regional managers and branch managers across the Group and is the population captured in the diversity element of the 2024 annual bonus for Executive Directors.CEO total remuneration metricsThe table on page 120 shows the ratio of the CEOs total remuneration to the lower,median and upper qu

214、artile full-time equivalent remuneration of the Groups UK colleagues.Pay Benefits and Rewards We take a comprehensive approach to pay,benefits and reward to ensure that all colleagues feel valued and motivated.We offer a range of rewards and recognition programmes to celebrate colleague achievements

215、 and milestones.We continuously assess the evolving needs of our workforce and regularly update our compensation and benefits policies.Our benefits package includes health insurance,retirement plans,and wellness programmes.Our policy is that all colleagues receive at least one per cent above the loc

216、al national minimum wage.Our businesses operate either in the UK or the EU,and the countries in which we operate either have a statutory National Minimum Wage or our colleagues are covered by a Collective Agreement which determines minimum pay levels for the sector.In countries where there is a stat

217、utory National Minimum Wage,we define the wage benchmark for our colleagues to be National Minimum Wage+1%.We are working with our businesses to ensure compliance with forthcoming EU pay transparency legislation.Social protection We are committed to supporting our colleagues through various life eve

218、nts that may impact their income.Our benefits programmes are designed to provide financial security and peace of mind.We provide safeguards against income loss due to major life events including loss of income due to sickness,unemployment,workplace injury and acquired disability,parental leave and r

219、etirement.All our businesses operate within the EU or the UK and all colleagues are covered by at least the statutory minimum payments for sick pay,redundancy pay,parental leave and redundancy payments.Many of our businesses also provide enhancements to these benefits.75Annual Report and Accounts 20

220、24CorporateGovernanceSustainabilityStatementFinancial StatementsSupplementary InformationStrategicReportSocial disclosures continuedOwn workforce continuedTraining and development We invest in continuous learning and development opportunities for our workforce to enhance skills and career growth and

221、 offer equal access to development opportunities,such as apprenticeship,training programmes,mentorship,and career advancement resources.We review our talent and succession plans regularly to address disparities,reinforcing our commitment to ensuring fairness and equality in career progression.We kee

222、p up-to-date records on recruitment,training and promotion that provide a transparent view of opportunities for colleagues and their progression.Colleague health and safety We believe nothing we do is so urgent that we cannot do it safely.We remain committed to doing everything we can to ensure that

223、 our colleagues,customers,and business partners return home safe and well each day,and we continue to embed health and safety into our everyday business practices.Safety,Health,and Environment(SHE)teams in each of our businesses integrate health and safety planning into business plans and ensure ris

224、k assessments reflect the reality of existing operations as well as new projects.Local management teams lead their health and safety agendas,while receiving guidance and support from the Group Safety,Health and Environment Director.Each business is subject to regular health and safety audits,includi

225、ng branch compliance checks by internal teams in the businesses,external enforcement officer inspections,and higher-level reviews by the Group Internal Audit and Business Risk team.These measures support and drive a continual health,safety,and wellbeing improvement plan.We encourage all colleagues t

226、o actively contribute to our health and safety management by raising concerns and making suggestions.This is facilitated through a combination of day-to-day management,focus groups,team meetings,our Notify Safety Management System and the Group Risk Committee.Near miss reporting across the Group has

227、 increased by 90 per cent from 2021 to 2024 as colleagues at all levels have taken positive steps to report concerns or near miss incidents,helping to eliminate or reduce the risk of recurrence.2024 saw a continued reduction in injury severity as a result of our focus on the key health and safety pr

228、iorities around the Group.The individual activities and initiatives in each business varied across our sectors according to local requirements but the key priorities remain centred around:Keeping pedestrians safe from moving vehicles;The safe handling and storage of products,including safe working a

229、t height;and Ensuring safe customer deliveries on site.Maintaining the engagement and involvement of all colleagues in their individual workplaces with these key priorities and their own local initiatives is imperative to assist us in keeping people safe.In 2024,the Group Lost Time Injury Severity R

230、ate has reduced by a further six per cent versus 2023 while the Lost Time Injury Frequency Rate increased by one per cent.During the period 2021 to 2024,the Lost Time Injury Severity Rate has reduced by 35 per cent and the Lost Time Injury Frequency Rate has reduced by 13 per cent.Visible felt leade

231、rship of health and safety across all levels of supervisors and managers in our businesses will be a fundamental focus in 2025 to positively recognise colleagues doing the right thing and to reinforce the correct behaviours where necessary.20242023202220211.000.920.860.8720242023202220210.260.190.18

232、0.17Lost Time Frequency Lost Time Injuries/100,000 hours worked0.87Lost Time Severity Working Days Lost/2,000 hours worked0.17Accounting Principles for health and safetyHealth and safety metrics covers all colleagues,excluding colleagues from Salvador Escoda.Lost time injury frequency rate refers to

233、 the number of work-related injuries resulting in lost working days per 100,000 hours worked.Lost time injury severity rate refers to the number of lost working days due to a work-related injury per 2,000 hours worked.Days lost are calculated from the first full day to the last,counting 5 days per w

234、eek regardless of individual contracted working hours.Colleague wellness We believe in supporting the physical,social,emotional and financial aspects of our colleagues wellbeing.Our Wellness at Work Policy outlines our strategy and provides a baseline standard across all our businesses.We provide he

235、alth benefits and sick pay to ensure our colleagues stay fit and are supported during times of ill health.We also offer colleague assistance to support colleagues dealing with personal or work-related problems that might affect their job performance,health,and wellbeing.This benefit provides confide

236、ntial support and counselling services to our colleagues.We ensure a safe and pleasant work environment,provide mandatory health and safety and job-specific training,and offer work breaks and holidays,along with free hot and cold refreshments.We offer communal spaces,recognise key life events,and su

237、pport paid volunteer days and locally approved charities.We encourage all our businesses to view wellness through a diversity,equality and inclusion lens to ensure we are being equitable and fair with support that can affect colleagues health and financial outcomes.Our CEO Mental Wellbeing Statement

238、,which is available on our Group website,www.G,sets out our leadership approach to colleague wellbeing which underpins colleague engagement and is to the benefit of our business and all our stakeholders.It is important that we all show care and respect for each other,support work-life balance and th

239、at our businesses provide the tools and resources to support our colleagues.76Grafton Group plcSupply chain risk management is a top priority for the Group,and we understand the importance of effective management of the environmental and social impacts in our supply chain.Our businesses source produ

240、cts from a range of suppliers including:Branded building materials manufacturers Branded raw materials suppliers Own brand suppliers Distributors and agents Suppliers engaged through buying groups.Our due diligence process allows us to have visibility of whether our suppliers have effective processe

241、s in place to manage their environmental and social impacts including strong working conditions for those involved in the manufacture of the products we sell.In 2024,we selected EcoVadis to support us in gaining greater transparency in our supply chain management and ensure our suppliers standards f

242、ollow best practice.PoliciesThe Grafton Group Code of Business Conduct and Ethics sets out our expectations for colleague conduct with suppliers.The Grafton Group Supplier Code of Conduct sets out our expectations for suppliers covering legislative compliance,human rights,environmental sustainabilit

243、y and business practice.The Code has been published in multiple languages and on business unit websites.This has been approved by the Procurement Board and the Group CEO.These Codes are reviewed every two years or sooner if significant changes occur.Supply chain due diligenceWe have continued throug

244、h 2024 to work with Exiger on our supply chain risk management.We work with Exiger to send due diligence questionnaires to large suppliers covering a range of environment,social and governance topics.The system also screens suppliers against sanctions lists to identify adverse media findings(further

245、 information about this process can be found in our 2024 Modern Slavery Statement which is available at ).At the end of 2024,84 per cent of suppliers on the risk management system have completed the assessment which has increased from 81 per cent at the end of 2023.In 2022 to 2024 there have been 40

246、 screening reports which flagged concerns and have been raised and resolved by the relevant business unit in partnership with the supplier in question.However,in 2025 we are updating our due diligence process through our work with EcoVadis.EcoVadis is a globally recognised sustainability rating agen

247、cy conducting assessments based on international sustainability standards to assess our supply chain partners.Our due diligence process is designed to identify and mitigate risks within our supply chain.Each of our business units manages their own sourcing process.Suppliers will be uploaded onto the

248、 EcoVadis IQ+Platform where it will be assigned a sustainability risk.Based on this risk suppliers are engaged on key actions to mitigate risks.Supplier risk and performance will be monitored and reviewed.In addition to the EcoVadis process we have mechanisms in place to identify concerns which incl

249、ude supplementary adverse media screening,the SpeakUp whistleblowing service which allows stakeholders to report any concerns confidentially to an independent party with safeguards in place.We also encourage open dialogue between suppliers and our commercial teams.Some business units have enhanced d

250、ue diligence processes for key suppliers which can include auditing of manufacturing facilities.For example in 2024 Selco started working with Surity for their direct sourcing programme.Surity carry out detailed compliance and sustainability assessments on and improvement programmes with each factor

251、y that they work with covering ethical,environmental,safety and quality issues.Adverse Impacts identified through our due diligence process will be monitored,tracked and escalated where necessary.Value chain worker engagementEngagement of value chain workers is a key element of the EcoVadis rating p

252、rocess that suppliers will be assessed against.Value chain worker channelsOur SpeakUp channel is available for all suppliers to share concerns.Severe human rights abusesNone have been reported or identified through screening.Resourcing invested in programmeGiven the importance of supply chain manage

253、ment and due diligence this is an important area of investment.We invest resources in our risk management and screening platforms,sustainability,procurement,analyst and audit resource in the Group and Business Unit Functions.S2 Workers in the value chain Accounting PrinciplesAll information from sup

254、pliers,including assessment responses and evidence,is held on the risk management system and used to determine assessment completion rates.This metric has been circulated monthly to relevant colleagues for visibility and transparency,The system also holds information on adverse media findings,where

255、it frequently scans online public sources for mentions of our suppliers in a negative light.77Annual Report and Accounts 2024CorporateGovernanceSustainabilityStatementFinancial StatementsSupplementary InformationStrategicReportSocial disclosures continuedS4 Consumers and end-usersAs a distributor of

256、 building materials and retailer in the DIY space ensuring we engage our customers effectively,listen to their ideas and concerns and respond appropriately is critical to our commercial success.Our customers include:SMEs involved in Repair,Maintenance and Improvement(RMI)Large private sector custome

257、rs involved in the construction industry Public sector organisations DIY customers Our business units engage with customers in a range of different ways such as:Customer service teams Customer surveys Customer insight programmes Product return processes Face to face conversations in branch Our busin

258、ess units use these insights to develop their customer propositions.Impact area and disclosureProduct safety and quality Product safety and quality processes of our manufacturing businesses are incorporated in the resource use and circular economy information on page 70.Beyond this our distribution

259、and retail businesses have approaches tailored to their product and supply mix.These processes include contractual arrangements with suppliers to ensure products meet appropriate standards,product recall processes and procedures should a concern arise,technical manuals covering products specificatio

260、ns,safety and quality standards as well as product testing regimes for certain product categories.Health&safety of customers in our branches The Group health and safety policy and approach covers our customers in branch.Further detail on our approach to health and safety is set out on pages 50 and 7

261、6.Privacy&data security IT&cyber security Our approach to privacy and data security is set out on page 80.Community Graftons business units operate in a diverse range of communities and many of our colleagues come from these communities.Its incredibly important to act as a good neighbour and use our

262、 skills and experience to help those in need.Colleagues care deeply about supporting community programmes through volunteering,fundraising and donating,and in the challenging economic circumstances as a business we are proud to have contributed over 1.2 million to communities in 2024,exceeding our t

263、arget of 0.6 per cent of adjusted operating profit,and to have raised a further 815k through colleague and customer fundraising.The contribution by the Group to communities is made up of:Volunteering time by our colleagues paid for by the business for a host of activities which could include everyth

264、ing from supporting local schools,refurbishing buildings,skills training and fundraising.Monetary donations from the business to local community groups,usually voted for by our colleagues.These can take the form of donations and matched funding for colleague fundraising activities.In-kind donations

265、which includes materials donated at a local level to support the refurbishment of buildings and services such as marketing,press and print needed to raise awareness of the organisations and issues.Total donated by Grafton via volunteering,materials,sponsorships and cash donations1.2mTotal donated by

266、 customers and colleagues815kAdditional social disclosures 78Grafton Group plcGovernance disclosures G1 Business ConductTo deliver our business and sustainability goals we underpin our strategy with robust governance processes,strong policies and procedures,effective training and awareness,responsib

267、le sourcing and responsive management of risk and opportunities.Governance TSustainability governance is integrated into Graftons overall governance structure as outlined on page 86.The Board of Directors has ultimate responsibility for sustainability governance.Sustainability was discussed in depth

268、 at two Board meetings during the year and an update was shared by the CFO at every meeting.Topics covered in 2024 included climate change,supply chain due diligence,sustainability legislation,progress,plans and reporting.The Audit and Risk Committee is responsible for overseeing and monitoring the

269、Groups risk management systems and the steps taken to mitigate key risks,including sustainability and climate change.The Executive Sustainability Committee(ESC)was established in 2023 to develop and implement the Groups sustainability strategy subject to approval and ultimate oversight by the Board.

270、Its role is to ensure that sustainability considerations are appropriately embedded into the wider business strategy and commercial decision-making process,and that sustainability opportunities and risks have been identified and that measures are scheduled to capitalise on opportunities and mitigate

271、 risks.The ESC comprises the Group CEO,Group CFO and Group Head of Sustainability as well as Business Unit leadership.It met three times in 2024.Sustainability and climate risks and opportunities are assessed and reviewed by the Group Risk Committee(GRC)which is described in further detail on page 4

272、4.The GRC evaluates each of the Groups material risks,including sustainability and climate change,to confirm that the risk is appropriately described and prioritised,and that the current mitigating controls and actions are sufficient to manage the risk within the Groups appetite.The Sustainability W

273、orking Group is led by the Groups Head of Sustainability and includes functional heads with expertise in property,people,environment and ethics.The Working Group is responsible for facilitating actions to help the Group and individual businesses implement the sustainability strategy,and respond to t

274、he identified climate risks and opportunities.The Group Sustainability Strategy and climate programme is being implemented by the individual business units.The CEOs of those businesses are responsible for implementing and managing their own sustainability and climate change programme which is consis

275、tent with the Groups overall strategy.Each business has formed its own sustainability committee or working group to monitor and manage its sustainability actions.The Group Head of Sustainability had regular meetings during the year to discuss progress and share good practice with the teams in the bu

276、siness units.In addition,a number of cross-business network forums have been established which discuss specific sustainability topics including property,people,and transport.In 2024,the bonus scheme for the CEO and CFO included elements linked to the achievement of sustainability targets including r

277、eduction in Scope 1 and 2 GHG emissions and gender diversity in leadership.Ethical business practices and human rights The Group Code of Business Conduct and Ethics,which is available on ,reflects our responsibility to uphold high standards of ethics and integrity,and it sets the standard of behavio

278、ur which colleagues,contractors,agents and businesses are expected to follow.The Code and associated policies are the subject of mandatory training courses which are accessed by colleagues through the Groups online learning management systems.Compliance rates are recorded and reported to the Group R

279、isk Committee and Group Internal Audit who perform testing to confirm compliance with key aspects of the Code and Group policies as part of annual reviews.The mandatory training courses are expected to be completed by colleagues within the first three months of joining the Group,and then retaken on

280、a regular basis(either annually or every two years depending on the course).Overall compliance rates for the completion of mandatory training courses by colleagues across the Group have improved in 2024 although remain below the target level of 95 per cent:20242023Business Conduct and Ethics92.44%85

281、.92%Information Security Awareness89.23%77.63%Regulatory Compliance91.59%86.85%Governance disclosuresESRS G1:Business conductStrategy linkage EthicsUN SDG79Annual Report and Accounts 2024CorporateGovernanceSustainabilityStatementFinancial StatementsSupplementary InformationStrategicReportAccounting

282、principlesColleague compliance with the requirement to complete three online Group Mandatory Training Courses is monitored and reported against.The requirement is for new starters to complete the training within three months of joining and then renew as required by the course in question.The target

283、for compliance is 95 per cent.The Scope is colleagues of all Group companies and Group Head Office at 31 December for each year and 2024 figure excludes Salvador Escoda colleagues.Data is taken from the Learning Management System of the Individual Business Unit and collated at Group.Compliance is ex

284、pressed as a percentage of total number of colleagues allocated the course and classed as compliant divided by total number of colleagues allocated the course.SpeakUp Colleagues are encouraged to report any concerns they have to their line manager including anything of an ethical business nature.In

285、addition,the Group has an established whistleblowing process in each of its territories which will be rolled out in Spain for Salvador Escoda in 2025.The SpeakUp service allows colleagues to report concerns confidentially to an independent party with safeguards in place to ensure cases are investiga

286、ted fully and prevent retaliation to reporters.Awareness of the process is through colleague training,business communications and posters at each site.A link to the reporting website is also included on the Group and individual business unit websites.We also encourage third parties,including custome

287、rs and suppliers to report any concerns of wrongdoing by businesses or colleagues through the service.During 2024 there was a five per cent decrease in the number of reports received through the SpeakUp service compared to 2023 but this was still 54 per cent higher than the number of reports in 2022

288、 following action taken by Group and businesses to improve awareness of the service.35 per cent of cases were substantiated following investigation and resulted in remedial action including dismissal,disciplinary,re-training and process improvement.Privacy,data and cyber security Grafton has continu

289、ed to build on the progress of previous years in respect of process improvements and investment in information technology to detect and protect our data and systems.Both data protection and information security are key areas of focus,underpinned by comprehensive policies and ongoing awareness campai

290、gns to ensure that all colleagues play their part in keeping information safe and secure.Each business has a cyber-attack incident plan setting out the steps to react to and recover from a cyber incident,and regular assessments are carried out to identify and resolve vulnerabilities.During 2024,a pr

291、ogramme of activity to improve cyber security across the Group,which started in 2022,was completed.The key controls implemented by this programme are now subject to regular dashboard reporting at a business level which is monitored by the Groups Information Security Steering Committee.Anti-Bribery a

292、nd corruptionThe Group Anti-Bribery and Corruption Policy sets out the Groups zero tolerance approach to all forms of bribery and corruption,and the standards expected of all colleagues.It includes thresholds and approval requirements for the offering and receiving of gifts and hospitality to and fr

293、om third parties by colleagues,and requires that a declaration of independence be signed annually by senior management and other individuals who are considered to be exposed to a higher risk of conflicts of interest,including colleagues with management roles and those with responsibility for contrac

294、t negotiations with customers and suppliers.Colleagues are made aware of the policy requirements through mandatory training and awareness videos.Compliance with the policy and the management of potential conflicts of interest is reviewed and tested by Group Internal Audit through annual compliance a

295、udits.Governance disclosures continuedBusiness Conduct continued80Grafton Group plcManagement of Grafton Group PlcScope We have been engaged by Grafton Group plc(“Grafton”)to perform a limited assurance engagement,as defined by International Standards on Assurance Engagements,here after referred to

296、as the engagement,to report on Graftons selected performance data and statements(the“Subject Matter”)contained in Graftons(the“Companys”)Annual Report for the year ended 31 December 2024(the“Report”).The Subject Matter includes the following selected performance data,which are also marked with a sym

297、bol in the Report:2024:Scope 1 and 2 greenhouse gas(GHG)emissions(location-based)absolute tonnes of carbon dioxide equivalent.Scope 1 and 2 greenhouse gas(GHG)emissions(market-based)absolute tonnes of carbon dioxide equivalent.2024:Total number of female employees in the continuing operations of the

298、 Group divided by total number of employees in the continuing operations of the Group,expressed as a percentage.Total number of female Group Management Team(GMT)members and specified Group leadership roles to include:Head of Sustainability,Group Health and Safety Director,Group IT Director,Group Ris

299、k Director,Business leaders and their executive committees and the regional and branch managers in the businesses divided by total GMT and specified Group leadership roles,expressed as a percentage.2024 target:At least 0.6%investment and/or sustainability related fundraising(including colleague time

300、 for paid volunteering,sponsorship of community groups,gifts in kind and cash donations,excluding colleague and customer fundraising)as a percentage of adjusted operating profit for the Group.2024 landfill diversion rate:total tonnes of waste diverted from landfill,divided by the total tonnes of was

301、te generated in operations.Other than as described in the preceding paragraph,which sets out the scope of our engagement,we did not perform assurance procedures on the remaining information included in the Report,and accordingly,we do not express a conclusion on this information.Criteria applied by

302、GraftonIn preparing the Subject Matter,Grafton applied the Graftons publicly disclosed criteria (the“Criteria”)that is available on the Grafton website.Such Criteria were specifically designed by Grafton to guide the measurement and reporting of the Subject Matter.As a result,the subject matter info

303、rmation may not be suitable for another purpose.Graftons responsibilitiesGraftons management is responsible for selecting the Criteria,and for presenting the Subject Matter in accordance with that Criteria,in all material respects.This responsibility includes establishing and maintaining internal co

304、ntrols,maintaining adequate records and making estimates that are relevant to the preparation of the subject matter,such that it is free from material misstatement,whether due to fraud or error.EYs responsibilitiesOur responsibility is to express a conclusion on the presentation of the Subject Matte

305、r based on the evidence we have obtained.We conducted our engagement in accordance with the International Standard for Assurance Engagements Other Than Audits or Reviews of Historical Financial Information(ISAE 3000(Revised)and International Standard for Assurance Engagements on Greenhouse Gas State

306、ments(ISAE 3410),and the terms of reference for this engagement as agreed with Grafton on 21 November 2024.Those standards require that we plan and perform our engagement to express a conclusion on whether we are aware of any material modifications that need to be made to the Subject Matter in order

307、 for it to be in accordance with the Criteria,and to issue a report.The nature,timing,and extent of the procedures selected depend on our judgment,including an assessment of the risk of material misstatement,whether due to fraud or error.We believe that the evidence obtained is sufficient and approp

308、riate to provide a basis for our limited assurance conclusions.Our independence and quality managementWe have maintained our independence and confirm that we have met the requirements of the Code of Ethics for Professional Accountants issued by the International Ethics Standards Board for Accountant

309、s and have the required competencies and experience to conduct this assurance engagement.EY also applies International Standard on Quality Management 1,Quality Management for Firms that Perform Audits or Reviews of Financial Statements,or Other Assurance or Related Services engagements,which require

310、s that we design,implement and operate a system of quality management including policies or procedures regarding compliance with ethical requirements,professional standards and applicable legal and regulatory requirements.Description of procedures performed Procedures performed in a limited assuranc

311、e engagement vary in nature and timing from,and are less in extent than for a reasonable assurance engagement.Consequently,the level of assurance obtained in a limited assurance engagement is substantially lower than the assurance that would have been obtained had a reasonable assurance engagement b

312、een performed.Our procedures were designed to obtain a limited level of assurance on which to base our conclusion and do not provide all the evidence that would be required to provide a reasonable level of assurance.Although we considered the effectiveness of managements internal controls when deter

313、mining the nature and extent of our procedures,our assurance engagement was not designed to provide assurance on internal controls.Our procedures did not include testing controls or performing procedures relating to checking aggregation or calculation of data within IT systems.The Green House Gas qu

314、antification process is subject to scientific uncertainty,which arises because of incomplete scientific knowledge about the measurement of GHGs.Additionally,GHG procedures are subject to estimation(or measurement)uncertainty resulting from the measurement and calculation processes used to quantify e

315、missions within the bounds of existing scientific knowledge.A limited assurance engagement consists of making enquiries,primarily of persons responsible for preparing the Subject Matter and related information and applying analytical and other appropriate procedures.Our procedures included:Conducted

316、 interviews with personnel to understand the business and reporting process,as well as the process for collecting,collating,and reporting the Subject Matter during the reporting period Checked that the calculation methodologies have been correctly applied in accordance with the Criteria Undertook an

317、alytical review procedures to support the reasonableness of the data Identified and tested assumptions supporting calculations Tested,on a sample basis,underlying source information to check the accuracy of the data We also performed such other procedures as we considered necessary in the circumstan

318、ces.ConclusionBased on our procedures and the evidence obtained,we are not aware of any material modifications that should be made to the Subject Matter as of 5 March 2025 for the year ended 31 December 2024,in order for it to be in accordance with the Criteria.Use of our assurance statement We disc

319、laim any assumption of responsibility for any reliance on this assurance statement or its conclusions to any persons other than Grafton,or for any purpose other than that for which it was prepared.Accordingly,we accept no liability whatsoever,whether in contract,tort or otherwise,to any third party

320、for any consequences of the use or misuse of this assurance statement or its conclusions.Ernst&Young5 March 2025Dublin,IrelandIndependent practitioners assurance report81Annual Report and Accounts 2024CorporateGovernanceSustainabilityStatementFinancial StatementsSupplementary InformationStrategicReport