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Making Material Progress

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Andy Land, Head of Sustainability

This year, the convergence of climate change and an El Niño event have highlighted the pressing environmental challenges we all face.

Andy Land Head of Sustainability

FY23 Key Numbers

Our first year of mandatory CFD/TCFD compliance is against this backdrop of increasing extreme weather events due to climate change, which is why we have chosen to focus on the increase in storm intensity for our first quantitative assessment. In addition to this, we have achieved another significant milestone this year, having designed a bespoke product lifecycle assessment database that we are using to calculate our emissions for the first time. This essential resource shows the detail of our environmental hotspots so we can prioritise reducing our environmental footprint as we work towards setting a Net Zero target over the next few years.

Our Environmental Strategy

Carbon Neutral Business Operations Focus on Products Lead the Industry
Target Ensure our Internal Business Operations are Carbon Neutral by the end of FY24. Reduce and neutralise product GHG emissions to be Carbon Neutral by 2030. Commit to SBTs for decarbonisation by 2025 at the latest, and then set a Net Zero Target.
Focus Our External Operations and what we send out into the world. The wider Music Technology Industry.
FY23 Update We are nearly finished switching to 100% renewable energy in our offices and are repeating verified offsets of residual Scope 1 and 2 emissions this year. Work continues to reduce the footprint of our products, and our now verified in-house lifecycle assessments are giving engineers the data they need to make the right changes. We continue to make increased disclosures on our environmental work, and are set to start the SBT process in the coming financial year.

Environmental Metrics and Targets

Being a UK-based company, we are committed to achieving Net Zero status by 2050 at the latest, in line with the UK Climate Change Act. This is our target too, and we are establishing how quickly we can achieve this ahead of schedule.

Our aim is therefore not to set an arbitrary Net Zero target year until we have gone through the Science Based Targets application process in 2025 at the latest, and instead setting carbon reduction metrics and targets to plan for long-term success.

Environmental Disclosures

Our complete Scope 1, 2 and 3 Carbon Dioxide Equivalent footprint is summarised here. All units are gross tCO2e unless stated otherwise. For Scopes 1 and 2, we have maintained Carbon Neutral status for a second year as a result of switching to renewable energy and purchasing verified carbon offsets to account for residual emissions.

Category Metric FY22 Value FY23 Value % of FY23 Gross CO2e Footprint
Intensity Metrics tCO2e per Product Sold* 0.059 0.066 -
tCO2e per £M Revenue* 629 639 -
Scope 1 GHG Emissions Total Scope 1 223 177 0.15%
Total Scope 1 (Net) (1) 0 -
Combustion of Natural Gas (location-based) 189 153 0.13%
Combustion of Natural Gas (market-based) 0 4 -
Transportation (excluding grey fleet) 34 24 0.02%
Scope 1 Carbon Offsets against Combustion of Natural Gas (market-based) and Transportation (excluding grey fleet) (35) (28) -
Scope 2 GHG Emissions Total Scope 2 207 257 0.22%
Total Scope 2 (Net) (0) 0 -
Electricity (location-based) 207 257 0.22%
Electricity (market-based) 125 152 -
Scope 2 Carbon Offsets against Electricity (market-based) (125) (152) -
Scope 3 GHG Emissions Total Scope 3* 115,652 113,982 99.62%
01: Purchased Goods & Services* 53,361 58,638 51.25%
02: Capital Goods 197 207 0.18%
03: Fuel & Energy-related Activities 100 51 0.04%
04: Upstream Transportation & Distribution* 463 454 0.40%
05: Waste Generated in Operations 11 11 0.01%
06: Business Travel 215 1,014 0.87%
07: Employee Commuting 202 716 0.63%
09: Downstream Transportation & Distribution* 266 238 0.21%
10: Processing of Sold Products 34 33 0.03%
11: Use of Sold Products* 56,625 51,388 44.91%
12: End-of-Life Treatment of Sold Products* 1,305 1,231 1.08%
Totals Scope 1, 2 and 3* 116,081 114,416 100%
Scope 1, 2 and 3 (Net)* 115,652 113,982 -

* Indicates the FY22 value has been recalculated using the same methodology as FY23.

Note: Categories 08: Upstream Leased Assets tCO2e, 13: Downstream Leased Assets tCO2e, 14: Franchises tCO2e and 15: Investments tCO2e do not apply to the Focusrite Group.

 

Our emissions this year remain dominated by our hardware products, accounting for 96% of our Net GHG Emissions. The change in methodology from last year, being a combination of procurement, financial and activity-based calculations, now all replaced with LCAs, has resulted in a significant reduction in our total emissions compared with what we reported, but is largely flat compared with FY22 when using the same methodology. Our total Scope 3 emissions to date have not been significantly impacted by changes we have been making to our hardware products, but we expect this to start filtering through as more products use recycled materials in mass production. In future years, we will start to see the effects of increased renewable energy in grids around the world, resulting in steady reductions in the ‘Use of Sold Products’ category, and will also provide more detail on the ‘Purchased Goods & Services’ category, showing how we are planning to transition to a low-carbon world.