Climate Disclosure

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

The COP26 climate summit in 2021 showed that the impacts of global heating are playing out across the globe and businesses have an obligation to act where are failing to do so. The latest available science shows that many climate impacts are now ‘baked in’ and will cause increasing disruptions to society in the near, medium and long term. Despite being a relatively small SME, 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 our in-house sustainability manager and a range of external professionals, advisors and consultants who are supporting the Crystal Doors’ sustainability ambitions. In any significant investment decision over £500,000, all employees are engaged and a majority must be in acceptance.

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, we expect them to do so this decade and therefore they will continue to be monitored, evaluated and mitigated.

Transition Risks

Policy and Legal

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 net zero commitments put 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.

Market

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

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.

Corporate Reputation

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 are committed to being 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

Local Extreme Weather

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.

Global Extreme Weather

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 sustainable operations and 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.

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. This strategy has been extremely successful to date, with many of the investments made since 2015 having already paid back on initial investment.

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	2021	2020
Scope 1 (direct) Greenhouse Gas Emissions	tonnes CO2e	68	50
Scope 2 (electricity) Greenhouse Gas Emissions	tonnes CO2e	103	117
tonnes CO2e	399	334	334
Grid electricity consumption	kWh	483,718	503,749
Diesel fuel consumption	litres	18,064	15,952
Industrial wood waste	tonnes	403	161

Target	Status
Carbon neutral (scopes 1 and 2)	Achieved (2022)
Net Zero (SBTi definition)	On track (TBC)
Offset personal carbon footprint of each employee	On track (2022)
100% of heating from renewable heat source	Achieved (2015)
100% LED lighting	Achieved (2020)
Maximise solar power capacity on roof space	Achieved (2020)
EPC rating A+	Achieved (2020)
100% electricity from renewable sources	Achieved (2022)
Zero waste to landfill	Achieved (pre-2015)
100% cardboard recycled	Achieved (2016)
100% plastic recycled	Achieved (2016)
Employees trained in carbon literacy	Achieved (2019)