Net Zero Progress

Scope 1 emissions are our direct greenhouse gas (GHG) emissions from owned or controlled sources, such as company vehicles, onsite fuel combustion and heating.

This year, across RSE Group our carbon footprint has remained relatively stable, despite the addition of three new RSE Group Companies and additional facilities to our portfolio.

Scope 2 emissions from purchased electricity. Scope 2 can be reported in two ways:

There has been a slight, but positive, reduction in our Scope 1 emissions. Our location-based Scope 2 emissions have increased significantly. This increase is driven by the addition of new facilities across the RSE Group. This is our first year reporting market-based Scope 2 emissions, so we are unable to compare these figures to last year’s performance.

Location-based: This is the average emission intensity of the electricity grid in this location. For example, the UK has an emissions factor for UK grid electricity which takes an average across all fuel mixes (2024: 0.207kgCO2e/kwh)

Market-based: This reflects your market choices when purchasing your electricity and is specific to the tarriff you have purchased. For example, a renewable energy tariff or standard tariff.

As a result, our Group combined Scope 1 and 2 emissions (location-based) have increased by 2%, and our combined Scope 1 and 2 emissions (market-based) have decreased by 2%.

Key Highlights:

• Scope 1 emissions have reduced by 1.5%,from 3908 tCO2e in FY24 to 3847 tCO2e in FY25.
• Scope 2 Emissions:
• Location-based emissions have increased by 33%, from 463 tCO2e in FY24 to 615 tCO2e in FY25.
• Market-based emissions are 29% less than our location-based emissions, at 439 tCO2e.
• Our total Scope 1 and 2 emissions progress:
• Location-based: Total Scope 1 and 2 have increased by 2%
• Market-based: Total Scope 1 and 2 have decreased by 2%

Intensity Metrics Success

Across RSE Group, this years’ figures show significant reductions across our three key areas:

• Scope 1 and 2 emissions per £M Turnover have decreased by 17%
• Scope 1 and 2 emissions per employee have decreased by 30%
• Scope 1 and 2 emissions per man hour worked have decreased by 18%

By measuring Scope 1 and 2 emissions per £M turnover, we can assess the following:

Efficiency: how carbon efficient our operations are in relation to revenue and whether we need to introduce more sustainability measures

Long term performance: whether our emissions are increasing or decreasing relative to business growth

Comparability: we can use this metric as an industry benchmark independent of size

RSE is the largest business within RSE Group and have successfully reduced their absolute Scope 1 emissions for the first time since calculating their baseline in 2019. The11% reduction is largely due to the introduction of HVO into our fleet vehicles and site plant and equipment.

RSE have also invested heavily in Solar Panels, with 14% of total electricity coming from solar power.

Together, these initiatives have helped to reduce RSE’s Scope 1 and 2 emissions per £M turnover by 25%, compared to FY24, and a 62% reduction compared to their 2019 baseline.

The largest contributor to our emission reductions is the introduction of HVO into fleet vehicles. The use of HVO in our Muir of Ord fleet saved 240 tCO2e this year, and the use of HVO across our sites has saved 332 tCO2e.

Solar Panels continue to drive down Scope 2 emissions, accounting for 11% of total electricity use across RSE Group, saving approximately 65 tCO2e.

49% of RSE Group electricity is sourced from renewable energy tariffs, supporting the reduction in our market-based scope 2 emissions by 40% compared to our location based.