IFRS S2: Metrics and Targets

"We disclose information relevant to all seven cross-industry metric categories. Scope 1, 2, and 3 greenhouse gas emissions are reported in accordance with the GHG Protocol Corporate Standard and the Scope 3 Standard. Transition and physical risk exposures are reported at asset and revenue-share level. Climate opportunities, capital deployment, internal carbon price, and remuneration linkage are disclosed later in this section."

"We are classified under the Industrials sector, Chemicals industry. The applicable IFRS S2 industry-based metrics on GHG emissions, air quality, energy management, water management, workforce health and safety, and product safety are reported in the Industry Metrics table. The metric on Community Relations is not reported separately as the relevant content is covered by our human rights disclosure."

"We disclose four climate targets: an absolute Scope 1 and 2 reduction of 42 per cent by 2030 vs 2020 (SBTi-validated); a Scope 3 intensity reduction of 25 per cent by 2030 vs 2020 for Purchased Goods and Services and Use of Sold Products; a 2050 net-zero target; and the statutory UK Streamlined Energy and Carbon Reporting (SECR) metric. Progress metrics for each are described under paragraphs 33 to 36 below."

"Absolute gross greenhouse gas emissions for the reporting period (tCO2e): Scope 1, 1,240,000; Scope 2 (market-based), 380,000; Scope 2 (location-based), 520,000; Scope 3, 8,950,000. Detailed breakdowns by category and methodology notes follow."

"Emissions are measured in accordance with the GHG Protocol Corporate Accounting and Reporting Standard (revised edition, 2004), the Scope 2 Guidance (2015), and the Corporate Value Chain (Scope 3) Standard (2011). UK-operated assets apply SECR methodology where it diverges; differences are disclosed in the Methodology Notes."

"Scope 1 emissions are calculated from metered site fuel consumption multiplied by DEFRA 2024 emission factors, with IPCC AR6 100-year GWPs. Scope 2 market-based emissions use contracted renewable certificates where available and supplier-specific or residual grid factors otherwise. Scope 3 Category 1 uses supplier primary data for 58 per cent of spend and EEIO secondary data (Exiobase 3.8) for the remainder."

"We apply the market-based Scope 2 method because it reflects contractual decarbonisation of our electricity supply. We disclose the location-based figure alongside to preserve comparability, as recommended by the Scope 2 Guidance. Supplier-specific Scope 3 Category 1 data is prioritised for the Top 50 suppliers because they account for 71 per cent of procurement spend and have emissions materially different from industry averages."

"Two methodology changes in 2024. Scope 3 Category 11 (Use of Sold Products) moved from a simplified lifetime assumption of 10 years to a product-family-specific assumption averaging 14 years, which increased 2024 Category 11 emissions by approximately 22 per cent. Category 6 (Business Travel) moved from spend-based EEIO factors to DEFRA distance-based factors, reducing that category by 8 per cent. Prior-year comparatives are restated."

"Scope 1 and 2 emissions of the consolidated accounting group (parent plus consolidated subsidiaries): Scope 1 1,180,000 tCO2e; Scope 2 market-based 350,000 tCO2e; Scope 2 location-based 490,000 tCO2e. This represents 95 per cent of Group Scope 1 and 92 per cent of Scope 2 reported under paragraph 29(a)(i)."

"Emissions from associates, joint ventures, and unconsolidated subsidiaries included under paragraph 29(a)(i)(1) to (2): Scope 1 60,000 tCO2e; Scope 2 market-based 30,000 tCO2e; Scope 2 location-based 30,000 tCO2e. Attribution basis is the equity share for each investee, ranging from 20 to 49 per cent. An entity-level table follows."

"Scope 2 location-based emissions: 520,000 tCO2e. Scope 2 market-based emissions: 380,000 tCO2e. The 140,000 tCO2e reduction reflects two long-term power purchase agreements (660 GWh per year combined, Texas wind and Spanish solar) plus bundled energy-attribute certificates covering a further 140 GWh. The full register of contractual instruments, with issuance dates and geographical-matching basis, follows."

"We report against all 15 Scope 3 categories. Categories 1, 4, 11, and 12 together account for 88 per cent of total Scope 3 emissions. Category 14 (Franchises) is reported as nil (we have no franchise arrangements). Prior-year comparatives are restated in line with the Category 11 methodology change noted under paragraph 29(a)(iii)(3)."

"Category 15 (Investments) is reported using the PCAF Global GHG Accounting and Reporting Standard for the Financial Industry. We disclose absolute financed emissions by asset class (listed equity and corporate bonds, corporate loans, project finance, commercial real estate), PCAF data quality scores for each, and the percentage of each asset class for which financed emissions are covered."

"Assets vulnerable to climate-related transition risk: £1.8bn (21 per cent of Group total assets). Revenue vulnerable: £3.2bn (26 per cent of Group revenue). Vulnerability is defined as exposure to sectors on our climate transition watchlist (coal, carbon-intensive cement, internal-combustion transport) plus any asset located in jurisdictions with announced carbon-price paths exceeding €100/t by 2030."

"Assets vulnerable to climate-related physical risk: £2.4bn (28 per cent of Group total assets). Revenue vulnerable: £2.0bn (16 per cent of Group revenue). Vulnerability is defined as exposure located in areas rated 'High' or 'Very High' for acute or chronic physical risk by our external physical-risk provider (Jupiter Intelligence) under our internal high-warming scenario out to 2050."

"Assets aligned with climate-related opportunities: £1.1bn (13 per cent of Group total assets). Revenue aligned: £2.9bn (24 per cent of Group revenue). Alignment is defined per our internal Climate Alignment Taxonomy, which draws from the EU Taxonomy climate mitigation criteria and extends to two adjacent activities (low-carbon industrial equipment services; embodied-carbon consulting) where EU Taxonomy criteria are not yet set."

"Capital deployed towards climate-related matters in 2024: capital expenditure £280m (mitigation £210m, adaptation £70m); sustainability-linked loan drawdowns £180m (aligned to transition plan milestones); R&D investment £55m on low-carbon product and process development. Classification rules and the capital-deployment register follow."

"We apply an internal carbon price in three decision contexts: investment appraisal (all capital proposals above £10m include a shadow-price sensitivity); scenario analysis (informing our three-scenario resilience framework); and performance management (a feeder input to the executive incentive plan's climate-linked metric)."

"We apply two internal carbon prices: a shadow price of £90/tCO2e for capital investment appraisal, calibrated to our central transition scenario's 2030 EU carbon price; and a scenario-specific price used in resilience analysis ranging from £30/tCO2e under Stated Policies to £200/tCO2e under Net-Zero in 2040. The shadow price is reviewed annually by the Risk and Sustainability Committee."

"Executive remuneration incorporates climate-related considerations through two mechanisms: a 20 per cent weight on absolute Scope 1 and 2 reduction progress within the Chief Executive's annual short-term incentive, and a 15 per cent weight on the same metric within the three-year Long-Term Incentive Plan. Both are linked to the SBTi-validated 2030 pathway."

"The percentage of 2024 executive management remuneration recognised that was linked to climate-related considerations was 8.4 per cent at the Chief Executive level and 6.9 per cent weighted average across the Group Executive Committee."

"Transition and physical risk exposure metrics draw on our asset register, the two physical-risk datasets referenced earlier, and our scenario analysis outputs. Opportunity metrics draw on the internal Climate Alignment Taxonomy, which builds on the EU Taxonomy where criteria are published and extends with documented internal criteria elsewhere. Method notes are included with each metric."

"In preparing the cross-industry metric disclosures under paragraphs 29(b) to (g), we have applied the guidance in paragraphs B64 to B65, including the definitions, disaggregation, and measurement-basis considerations set out therein."

"As a Chemicals industry issuer under the IFRS S2 industry-based guidance, we report the following industry metrics: GHG emissions intensity per tonne of product; scope of operations subject to greenhouse gas emission regulations; air emissions of selected pollutants; energy consumed and percentage grid electricity; and water withdrawn and consumed in regions with High or Extremely High Baseline Water Stress. Detail tables follow."

"The 2030 target is expressed as absolute Scope 1 and 2 emissions in tCO2e (market-based for Scope 2). The Scope 3 target is expressed as emissions intensity in tCO2e per £m of revenue for two Scope 3 categories. The 2050 target is expressed as net-zero absolute emissions (Scopes 1, 2, and 3)."

"The 2030 and 2050 targets are mitigation targets, aligned with the SBTi 1.5°C pathway for Scope 1 and 2 and the SBTi 'well-below 2°C' pathway for Scope 3 Categories 1 and 11. The adaptation target on the two water-stressed sites is a physical-risk-reduction target, not aligned with an external science-based initiative."

"The 2030 Scope 1 and 2 target applies Group-wide. The 2030 Scope 3 intensity target applies to Category 1 (Purchased Goods and Services) and Category 11 (Use of Sold Products). The adaptation target applies specifically to the Gujarat and Andalucía sites."

"The Scope 1 and 2 absolute target runs from a 2020 base year to a 2030 target year. The Scope 3 intensity target runs from a 2020 base year to a 2030 target year. The net-zero target has no explicit start year beyond 2020 and targets 2050 as the year of achievement."

"The base year for the Scope 1, 2, and 3 targets is 2020. 2020 was selected because it is the first year for which we have company-wide primary-data Scope 3 coverage above the 90 per cent threshold. The 2020 inventory is subject to annual recalculation under our base year policy following material organisational or methodology changes."

"Interim milestones: 2025 Scope 1+2 reduction of 21 per cent vs 2020; 2030 Scope 1+2 reduction of 42 per cent vs 2020 (primary interim target); 2040 Scope 1+2 reduction of 75 per cent vs 2020. Scope 3 intensity milestones: 2025 reduction of 10 per cent; 2030 reduction of 25 per cent. Each milestone is reviewed and reported on annually."

"The 2030 Scope 1 and 2 target is absolute. The 2030 Scope 3 target is an intensity target, defined as tCO2e per £m of revenue. The 2050 net-zero target is absolute, consistent with the SBTi Corporate Net-Zero Standard."

"Our Scope 1 and 2 target aligns with the 1.5°C pathway under the Paris Agreement, as validated by the SBTi. Our Scope 3 target aligns with the well-below 2°C pathway for Scope 3 under SBTi guidance. The 2050 net-zero target is aligned with the UK's domestic net-zero commitment and the broader Paris long-term goal."

"The 2030 Scope 1, 2, and Scope 3 intensity targets have been validated by the SBTi under the Corporate Near-Term Target-Setting Criteria (validation May 2024). The 2050 net-zero target is self-declared using the SBTi Corporate Net-Zero Standard as a reference framework; it is not externally validated because the target year exceeds the SBTi near-term window."

"Targets are reviewed annually by the Risk and Sustainability Committee and formally approved by the Board. A revision is triggered by a material change to the base year inventory, a change in SBTi validation criteria, or a material change to the Group's organisational boundary. The next scheduled full review is in H1 2026."

"Progress is monitored using the target metric (absolute Scope 1+2 tCO2e, market-based) as the primary indicator, supplemented by four lever-level metrics: percentage of electricity covered by contracted renewables; tonnes of coal capacity retired against plan; cumulative low-carbon capex deployed against plan; energy intensity reduction at our five most energy-intensive sites."

"No revisions to target values were made in 2024. The 2020 base-year inventory was recalculated following the Category 11 methodology change described under 29(a)(iii)(3); the target percentage was recalculated against the restated base year, maintaining the target absolute endpoint."

"2024 absolute Scope 1 and 2 emissions (market-based) were 1,620,000 tCO2e, a 19 per cent reduction against the 2020 base of 2,000,000 tCO2e. Our 2025 milestone is a 21 per cent reduction; we are on a credible trajectory, supported by three lever-level milestones delivered on schedule. Scope 3 intensity (Categories 1 and 11) has reduced 11 per cent against a 2020 base, slightly ahead of the 2025 milestone of 10 per cent."

"All climate-related targets cover the seven Kyoto greenhouse gases: CO2, CH4, N2O, HFCs, PFCs, SF6, and NF3, expressed in tonnes of CO2 equivalent using 100-year global warming potentials from the IPCC Sixth Assessment Report."

"The 2030 absolute target covers Scope 1 and Scope 2 (market-based). The 2030 intensity target covers Scope 3 Categories 1 (Purchased Goods and Services) and 11 (Use of Sold Products). The 2050 net-zero target covers Scopes 1, 2, and all 15 Scope 3 categories."

"The 2030 Scope 1 and 2 target is a gross target. The 2050 net-zero target is a net target, supported by a separately disclosed gross Scope 1, 2, and 3 reduction target of 90 per cent vs 2020. Residual emissions are expected to be neutralised through high-integrity carbon removals, as described below."

"The 2030 Scope 1 and 2 target was set using the SBTi Cross-Sector Absolute Contraction Approach. The 2030 Scope 3 intensity target was set using the sectoral decarbonisation approach applied to our chemicals-manufacturing product families, using the SBTi Chemicals sector guidance issued in 2023."

"Our 2050 net-zero target is supported by a maximum of 10 per cent credit-based neutralisation of residual emissions after a gross reduction of 90 per cent. Credits are intended to address hard-to-abate residuals from specific industrial processes for which commercial abatement is not expected by 2050 under any of our scenarios."

"Credits retired against the 2050 net-zero target will be drawn exclusively from schemes meeting the ICVCM Core Carbon Principles. Our preferred pathway uses Verra VCS with CCP-label methodologies, Puro.earth and Isometric for engineered carbon removals, and Gold Standard for selected nature-based removals with a demonstrated permanence mechanism."

"The portfolio will be weighted 60 per cent technological carbon removals (biochar, engineered direct-air-capture, enhanced weathering) and 40 per cent nature-based removals (high-permanence reforestation and blue-carbon). We are not planning to use reduction credits against the net-zero target."

"Permanence: removal credits must carry a contracted permanence of at least 100 years, with legal and financial buffer arrangements in place in the event of reversal. Additionality is assessed using the ICVCM CCP methodology-level assessments and an internal project-level review. Leakage is addressed through methodology-specific mitigation factors. Social safeguards require alignment with the IFC Performance Standards for nature-based projects."

"The target metrics used for the 2030 Scope 1 and 2 target and for the 2030 Scope 3 intensity target are drawn from the cross-industry metric category in paragraph 29(a). The Chemicals industry emissions intensity metric from paragraph 32 is used as a supplementary monitoring metric. No bespoke metrics have been introduced for this reporting period."