The Group aims to reduce emissions across its value chain and proactively manage the transition to a lower-carbon economy.
The Board has set ambitious goals around emissions reduction and sustainable forestry and the business has already taken big steps, including eliminating all single-use plastic in its packaging of gifts in the UK in FY24. We intend to completely remove single-use plastic from our operations in the Netherlands in FY25.
Goal 1: Reduce absolute emissions arising from its own operations (Scope 1 and Scope 2) by at least 50% by 2030, validated by the Science Based Targets initiative (SBTi), reduce operational emissions by at least 90% by 2050, and offset any emissions that cannot be reduced. Reduction targets are expressed relative to total emissions of 677 tCO2e in the baseline year of FY20.
Goal 2: Obtain commitments from suppliers to set net zero emissions reduction targets aligned with SBTi criteria representing 67% of Scope 3 emissions by April 2030 and reduce Scope 3 emissions intensity by 97% tCO2e/£1m of revenue by 2050, using FY22 as the baseline year, offsetting any emissions which cannot be reduced.
Goal 3: Reforest at least 330 hectares of woodland by the end of calendar year 2025.
Net zero operational carbon emissions
The Group is committed to: (a) reduce absolute emissions arising from its own operations (Scope 1 and Scope 2) by at least 50% by 2030 versus total emissions of 677tCO2e in the baseline year of FY201,2; and (b) offset any emissions that cannot be reduced. This has been validated by the Science Based Targets initiative (SBTi).
In FY24, the Group’s total Scope 1 and 2 emissions were 535tCO2e, (FY23: 540tCO2e) representing a reduction of 21% from FY20 baseline1 emissions of 677tCO2e in FY20. The Scope 1 and 2 baseline validated by the SBTi was for total emissions of 635tCO2e at Moonpig and Greetz in FY201, which has been re-calculated for the acquisition of Experiences.
The reduction in emissions was driven by the full-year impact of the FY23 opening of two new fulfilment sites with high environmental standards (including a BREEAM Excellent-rated facility in the UK and a Netherlands facility retrofitted in line with best practice) and making continuous improvements.
During FY24 we conducted energy audits to understand potential actions to reduce operational emissions.
In FY25, we plan to install solar panels at our Netherlands facility and implement the findings from our recent energy audits. Additionally, we will consolidate our Dutch footprint by relocating roles between facilities and continue procuring renewable energy for our offices and operational sites.
Reducing value chain emissions
We have set a long-term goal to reduce Scope 3 emissions by 97% tCO2e/£1m of Gross Profit by 2050. We plan to obtain commitment from suppliers in setting emissions reduction targets aligned with SBTi criteria. By April 2030, we aim for suppliers covering 67% of our Scope 3 emissions to have such targets in place.
We have re-expressed Scope 3 emissions intensity for the baseline year of FY22 from 433tCO2e/£1m of gross profit to 233tCO2e/£1m of revenue3. Absolute baseline Scope 3 emissions remain unchanged at 80,928tCO2e.
As part of our process of measuring value chain emissions, we held workshops with key suppliers to introduce carbon foot printing and tools for capturing emissions data.
Our GHG emissions disclosure (on pages 15 to 16 of our Sustainability Report) includes details of our Scope 3 categories, our organisational and operational boundaries, and the methodologies we use to measure value chain emissions. Summarised disclosure of GHG emissions is also set out on pages 36 to 37 of the FY24 Annual Report and Accounts.
Reforestation
The Group is committed to reforest at least 330 hectares of woodland by the end of calendar year 2025. The Group relies on wood pulp to make its products and therefore aims to be “forest positive”. This means that we will plant more trees than we use in our operations and value chain.
In FY24, we achieved 66% cumulative delivery against this five-year goal (FY23: 46%). In partnership with Tree-Nation, we planted 66 hectares of woodland, comprising of 103,000 trees (FY22: 99,000). This is in addition to any offsetting of emissions conducted within our other goals.
Tree-Nation enabled us to focus planting activity in ecologically sensitive areas and safeguards the long-term impact of tree planting by managing the forests. In FY24 we contributed to projects in Madagascar, Nepal, Tanzania, Columbia, Thailand, India and the UK.
In FY25 the Group intends to plant a further 66 hectares of forest.
1 For Scope 1 and Scope 2 emissions, the baseline year is FY20 and this has been validated by the SBTi. The FY20 baseline has been re-calculated for FY20 emissions at Experiences, following the acquisition of that segment. For Scope 3, the baseline year is FY22, calculated to include FY22 Experiences data.
2 Scope 2 emissions are calculated using the “location-based” method. For comparatives using the “market-based” method, see page 35 of the FY24 Annual Report and Accounts.
3 The emissions target has been re-expressed since FY23 as the Group has decided to align its intensity reporting metric with the Corporate Sustainability Reporting Directive and therefore has presented its intensity targets as a product of revenue rather than gross profit.