We want our stakeholders to know all about climate risks and how we manage them.

Climate change impacts are beginning to play out globally and across industries. These impacts will magnify in years to come, becoming a significant factor in the relative performance of firms, industries and the availability of resources. For this reason, Crystal Doors has committed to implementing, as fully as practicable, the recommendations of the internationally recognised Taskforce on Climate-Related Financial Disclosures (TCFD). For more information, visit www.fsb-tcfd.org.

Governance

Richard Hagan, Managing Director and sole shareholder of Crystal Doors, has responsibility for climate-related issues and since 2015 has pursued energy efficiency and renewable energy investments, measures to reduce carbon emissions and efforts to move towards a circular economy. To ensure a balanced and informed decision-making process, Richard Hagan works closely with senior management and external professionals supporting the company’s growth journey. In any significant decision over £500,000, all employees are engaged and a majority must be in acceptance of the financial commitment.

Strategy

The direct and indirect impacts of climate change have the potential to impact our business in the short (<2 years), medium (2-5 years) and long-term (5-10 years). This includes both ‘physical’ risks of climate change and ‘transition’ risks associated with the shift to a lower carbon economy. While many of these risks are not currently impacting business growth, they will continue to be monitored, evaluated and mitigated.

Transition Risks

Legislative and regulatory pressure to reduce greenhouse gas emissions in the UK and overseas is very likely to increase over the next decade. Expected impacts include rising energy, materials, waste and transport fuel costs and increasing environmental compliance requirements.

Managing the risk

Crystal Doors’ strategy is to exceed environmental regulations wherever possible. Our commitment to reach carbon neutrality by 2022 puts us years ahead of UK climate policy.

We have had zero waste to landfill status since 2015.

To reduce our reliance on energy from the grid, we have invested over £1.5 million to date in energy efficiency and renewable energy projects. As of 2020, our property is EPC A+ rated and our electricity consumption is 75% lower than it would have been had we made no improvements over the last 6 years. In 2020 we will produce 3x more energy on-site than we import from the grid. Our heating is entirely off-grid thanks to a 980kW biomass burner installed in 2016.

To mitigate rising fuel costs, we currently have one electric car and plan to electrify more of our fleet over the next few years.

We are conducting R&D projects and working with suppliers to identify/develop lower environmental impact materials to minimise impacts of future regulations on the materials we use.

As society adapts and reacts to the climate and environmental emergency, consumer behaviour will shift towards lower impact goods and services.

Increasing demand for electricity due to the electrification of heating and transport will increase electricity prices.

Natural resource depletion is expected to reduce availability and increase the cost of raw materials. The amount of natural resources consumed globally has quadrupled in the last 50 years, but less than 9% is being reused.

Managing the risk

Crystal Doors holds FSC (Forest Stewardship Council) Chain of Custody Certification to ensure that all timber we purchase is sourced from well-managed forests. We stock product that has been produced under the Programme for the Endorsement of Certification schemes (PEFC) and the American Sustainable Forestry Initiative (SFI).

We are taking action to lower the impact of our product portfolio by conducting R&D projects and working with suppliers to identify/develop sustainable, recycled and recyclable materials that support the circular economy.

We have invested over £1.5 million to date in on-site energy efficiency and renewable energy projects to minimise our reliance on imported energy and increase resilience to rising energy costs. Our energy efficiency and renewable energy investments minimise the embedded carbon in our products, and the significant energy savings we enjoy also help to offset the cost of using more sustainable materials.

Shifting public sentiment about climate change risks damage to brand value in the case of poor environmental performance, increased customer pressure down-stream in the supply chain and increased concern amongst stakeholders, including existing and prospective employees.

Managing the risk

Crystal Doors is committed to being an exemplar in corporate responsibility. In 2020 we declared a Climate Emergency and began aligning our business strategy with the UN Sustainable Development Goals (SDGs). We have committed to achieving carbon neutrality by 2022, making us one of the most ambitious manufacturers of any size in the UK in terms of tackling climate change.

To ensure this level of performance is replicated throughout our supply chain, from 2021 we will begin an active engagement programme with both suppliers and customers to encourage action on climate change. From 2022, if we deem a supplier or customer is failing to make progress, we will take the radical action of removing them from our supply chain.

Physical Risks

Climate change is expected to increase the frequency of extreme weather events around the globe. In the UK, this is likely to result in increased frequency of flooding. Although Crystal Doors’ property has not been directly affected by flooding and is at low flood risk, the wider Rochdale area suffered significant flooding during the Boxing Day floods of 2015.
Managing the risk
By supporting the employment of local residents, over 50% of Crystal Doors’ employees have the ability to walk to work, reducing the risk of transport disruptions in the event of extreme weather. Our 246kW of solar panel system and self-supplied biomass heating ensures resilience against disruption to power lines. EPC rating B insulation in the property will help to ensure resilience against extreme hot or cold weather in future.

Globally, climate-related extreme weather and natural disasters have the potential to cause significant disruption to supply chains.
 
Managing the risk
 
Our supply chain is continuously under review to ensure that we are partnering with companies that are able to demonstrate sustainability and environmental resilience.
 
We were able to secure supply and continue operating during the COVID-19 pandemic, which has acted as a good stress-test for the resilience of our supply chain against global natural disasters.

Risk Management

To underpin the ongoing success of the company and ensure sustainability for the long-term, managing climate-related risk is part of the Managing Director’s key responsibilities.

MD Richard Hagan assesses best environmental practice on a monthly basis and seeks advice from a growing network of expert organisations and professionals to identify existing and emerging risks, their potential size and scope, and available solutions. This is integrated into wider risk management decisions and informs Crystal Doors’ business investment strategy, which is investing 10% of company turnover over 5 years towards the goal of carbon neutrality by 2022.

To manage and minimise the financial risk of these activities, we utilise a cashflow neutral or cashflow positive approach to large capital investments, using cost savings from energy efficiency and renewable energy measures to cover finance repayments. 

Key metrics and targets

Crystal Doors uses a number of KPIs to measure and manage climate-related risks and opportunities, where possible in quantitative terms and verified by a third party.

Metric Units 2018-19 2017-18
Scope 1 (direct) Greenhouse Gas Emissions
tonnes CO2e
72
66
Scope 2 (electricity) Greenhouse Gas Emissions
tonnes CO2e
130
152
Grid electricity consumption
kWh
460,643
432,402
Diesel fuel consumption
litres
22,078
22,051
Industrial wood waste
tonnes
246
241
Target Status
Carbon neutral (scope 1,2,3) by 2022
On track (2022)
Offset personal carbon footprint of each employee
Achieved (2020)
100% of heating from renewable heat source
Achieved (2016)
100% LED lighting
Achieved (2020)
Maximise solar power capacity on roof space
Achieved (2020)
EPC rating A+
Achieved (2020)
100% electricity from renewable sources
On track (2021)
Zero waste to landfill
Achieved (pre-2015)
100% cardboard recycled
Achieved (2016)
100% plastic recycled
Achieved (2016)
All employees trained in carbon literacy
Achieved (2019)