We run efficient operations that consume less energy and produce less waste.
Better energy and waste management decreases costs and improves operational efficiencies.
Energy costs and increasing "green" taxes can reduce Ferguson's profit margins. We have reduction targets in place to minimise these costs.
Supporting drivers of profitable growth
What we do
In 2015/16 we set five-year targets to reduce carbon by 10 per cent and waste by 15 per cent per $m revenue and to increase the percentage of waste that is recycled to 40 per cent.
In recent years, the reduction in our portfolio of businesses has decreased our physical footprint and therefore our carbon footprint. To aid comparability of performance we have removed non-ongoing operations from the current and prior year periods.
In 2017/18 we reduced total carbon emissions per $m revenue by nine per cent. This was mainly achieved through improved route planning and retiring older vehicles from our fleet. The implementation of a utilities management system in the US allowed us to better manage energy usage and decrease our Scope 2 emissions. The percentage of total waste recycled deteriorated slightly against our goal mainly due to volume growth in the business and, to improve this number, each business is developing a waste diversion plan. Performance at the end of 2017/18, two years into the target period, is as follows against our stated targets.
Ongoing revenue of $20,752 million is used when calculating the relative carbon and waste performance.
All Scope 1 and 2 emissions and selected Scope 3 emissions are reported. Scope 1 data includes direct emissions from fuel operations, owned/leased vehicles and refrigerant leakage. Scope 2 data includes indirect emissions from purchased electricity and heat. Scope 3 data includes indirect emissions from outsourced transportation, private vehicles and business travel.
1. Constant currency revenues are used in order to remove the impact of currency fluctuations from our performance. This has reduced the relative carbon figures for prior years. Our approach to measuring carbon was developed in accordance with the Greenhouse Gas Protocol (“GHG Protocol”). Emissions are calculated using DEFRA and IEA carbon factors and are reported as tonnes of CO2 equivalent (abbreviated as tCO2e), based on the Global Warming Potential (“GWP”) of each of the “basket of six” greenhouse gases, as defined by the Kyoto Protocol. This data includes some estimates where actuals are unavailable.
2. To align with the change in presentational currency to US dollars last year, our waste data has been converted from Tonnes to US Tons, and will be reported in those units going forward. For the first six months of 2017/18 for which we have data, non-ongoing operations contributed 17,434 tCO2e and 8,387 US tons of waste to our total footprint. In 2016/17, non-ongoing businesses contributed 35,500 tCO2e and 22,975 US tons of waste. In 2015/16, non-ongoing businesses contributed 54,122 tCO2e and 26,859 US tons of waste. Inaccuracies identified in prior year numbers resulted in immaterial adjustments to the absolute carbon and waste totals in the corresponding charts.