Environmental, Social and Corporate Governance
Environmental Sustainability for Mitie is supported in-house by our Energy businesses which alongside our Waste business provides specialist dedicated end to end advice, reporting and active solutions to enable the business to meet our sustainability goals and objectives.
Our consultancy team specialises in Low Carbon Technologies, Workplace Strategy, Wellbeing and Environmental Performance. In addition, our Landscaping business has dedicated resource in Bio-diversity assessments and Carbon Sequestration projects such as living walls and green roof installations.
Carbon and environmental reporting for Mitie Group is undertaken by Jason Roberts, Head of Sustainability & Compliance in Mitie Energy. Jason is an accredited Low Carbon Consultant (Cibse register LCEA132377).
Mitie has set 13 industry leading social value and responsible business targets. These targets all relate to Mitie’s Social Value Framework, and the focus areas highlighted within the following pillars of Employment, Responsibility, Community, and Environment.
As can be seen on the target table a new baseline has been calculated for our CO2 emissions. This is due to the acquisition of Interserve and therefore buildings, fleet, and employees. This new baseline figure is for FY19/20, and was calculated using the following figures, relating to tonnes of CO2:
|(Mitie Scope 1 and 2)||(Mitie Scope 3 excluding fleet upstream)||(ISV Scope 1 and 2)||(ISV Scope 3 excluding fleet upstream)|
Having established stretching social value targets for Mitie Group, it was crucial to see that they were easily tracked and reported. The nature of social value means performance data comes from a wide range of systems and locations across all parts of the business. By exporting data from various systems and linking them to Power BI: a business analytics programme which provides an interactive visualisation of data, allowing end users to create their own reports and dashboards, a solution was created, our SVRB dashboard.
This gives a top-level overview of Mitie’s monthly performance against targets. It also allows users to drill down into target areas for each of the organisation’s social value pillars. Current performance can be tracked, gaps understood, and necessary improvements flagged. While users can already evaluate performance against target areas at group level, development is underway to provide visibility of how each business area is performing against targets, as well as the National Themes, Outcomes and Measures (TOMs) reporting standard for measuring social value.
Mitie continuously reviews operations, measuring processes and results to ensure we are performing as well as possible across all aspects of Environment, Social and Governance (ESG). This focus on all aspects of sustainability, together with our approach to innovation and new ways of operating saw Mitie rated the number one facilities management company globally, based on the Sustainalytics ESG risk rating report.
In FY 20/21, Mitie produced 19,205tCO2 Scope 1 and 2 (Location based) and 18,741tCO2 Scope 1 and 2 (Market based). These results mean we have reduced our emissions by 35%, going off market-based figures, since the FY18/19 baseline year.
Following the achievement of our target to reduce our emissions intensity by 35% by 2020 a year early, we then used FY18/19 as our new baseline year for our Plan Zero initiative to be net zero carbon by 2025. We have now gone further, and committed to a science-based target of net-zero supply chain (Scope 3) emissions by 2035. We exceeded our FY20/21 milestone target of 25,000tCO2e by 25%, with the 18,741tCO2e stated above (location-based).
Mitie acquired Interserve in December 2020, and therefore welcomed additional employees, buildings, and vehicles. To account for this growth, we re-baselined for FY19/20, following the calculation stated above. Our new baseline for FY19/20 is 38,037tCO2e. We have therefore amended our targets, which are included in the target table linked above. Our net-zero Scope 1 and 2 emissions by 2025 target has not changed, and we continue to strive to achieve this ambitious goal. Mitie work on our client sites, therefore our significant energy use (94%) comes from diesel fuel from our >7000 strong vehicle fleet. We report Scope 3 emissions within the ‘Mitie Group Environmental Data’ section below.
Clean sources of energy
Mitie has the largest pure electric vehicle (EV) fleet in the UK, with over 1380 currently on the road. This transition to a zero-emissions fleet aligns to our signatory to EV100, The Climate Group’s initiative to commit organisations to transitioning to an EV fleet by 2030. The Mercedes e-Vito electric van is part of Mitie’s fleet, supporting the Plan Zero Urban Landscaping service. This EV has custom-fitted roof solar panels to generate renewable energy, which charges battery-powered landscaping equipment. We have also now launched the UK’s first electric gritter, Gritter Thunberg, designed to reduce emissions in built up areas. Together with Mina, we have enabled direct payment for EV charging at home. Our next steps are recommending 100% renewable tariffs for Mitie drivers, increasing the uptake to power not only EVs, but homes too.
Mitie purchases 100% of power backed by Renewable Energy Guarantee of Origin (REGO), for Mitie-controlled offices, achieving RE100, the Climate Group’s initiative 25 years early.
Mitie’s estate has been benchmarked and audited. Energy optimisation methods have been implemented, identifying an annual carbon saving of 300 tonnes, including air-source heat pumps. electric air-conditioning systems, and timing schedules. Transitioning to these low-carbon alternatives will tighten our grip on Mitie’s energy consumption and decarbonise our heating systems. Mitie’s estate will then be prepped for the big CAPEX projects, including installing LED lighting systems.
Over 1000 electric vehicle charge points have been installed across both the Mitie estate and client sites, supporting transitions to an electric vehicle fleet.
We have committed to doubling our energy productivity, through The Climate Group’s EP100 initiative, whilst also extending Mitie Energy’s ISO50001 Energy Management Standard through the Group.
We accomplished significant achievements for our clients in FY20/21…
Saved our customers a further £19m through asset optimisation via remote connectivity, BMS upgrades, and onsite energy managers
Delivered 14 Plan Zero Pathways addressing over 375,000 tonnes of carbon
Procured 1.1TWh of supply contracts, 96.78% of which we REGO backed for power
Delivered 2,836 energy surveys
Managed 68,000 meters across all energy services
To date, we have saved our customers over 353,000 tonnes of carbon Over the course of three years, Mitie has helped our telecommunications customer save over 100GWh and £10m in energy costs, equivalent to 25,000 tonnes of CO2.
Pace of change in reducing emissions
Our unique position of attaining in-house sustainability experts allows Mitie to become a carbon-reducing machine, accelerating not only our journey to net-zero, but our clients too.
Mitie’s new baseline emissions are 38,037 tCO2e in FY19/20. Our next milestone target to achieve is 25,230 tCO2e in FY21/22, and to be net-zero in our Scope 1 and 2 emissions by FY24/25. This will largely be achieved through our EV transition, which is accelerating at an exponential rate.
ESG ratings, certifications and accreditations
Mitie have a Sustainability Policy MG(Pol)003 that covers the environment, energy, carbon and social value. The policy is owned by Jason Roberts (Head of Sustainability for Mitie Energy) and is reviewed and updated annually. The Policy is signed by the CEO Phil Bentley.
Our FY20/21 emissions have now been third-party verified to ISO14064-3 standards, by Optera. This ensures that we are reporting these figures accurately, and that the targets we’ve set and the plans to achieve them, are sound.
Mitie hold the Carbon Trust Standard with a score of 81% for carbon management, the highest mark within the UK FM sector and a 4% increase on the previous submission.
We are signatories of all three of The Climate Group’s global initiatives RE100, EV100 and EP100 and are one of only ten organisations in the world to do so, and the only FM.
Mitie procure 100% certified renewable energy for their built estate. RE100 is the global corporate renewable energy initiative bringing together hundreds of large and ambitious businesses committed to 100% renewable electricity. Led by The Climate Group in partnership with CDP, RE100’s mission is to accelerate a global shift to clean energy and zero carbon grids – delivering a cleaner, healthier future for us all.
Mitie are committed to replacing their >7,000 diesel fleet with electric vehicles. EV100 is a global initiative bringing together forward-looking companies committed to accelerating the transition to electric vehicles (EVs) and making electric transport the new normal by 2030.
Through our ISO50001 Energy Management Standard, Mitie have committed to doubling their energy productivity. The Climate Group’s global EP100 initiative in partnership with the Alliance to Save Energy brings together a growing group of energy-smart companies committed to improving their energy productivity and doing more with less.
Sustainalytics is a leading global provider of environmental, social, governance (ESG) and corporate governance data, research and analysis for investors.
In the January 2021 Sustainalytics ESG risk rating report, Mitie were rated number 1 out of all ranked business support services companies globally, with a 9.8 Negligible Risk score:
“The company is at negligible risk of experiencing material financial impacts from ESG factors, due to its low exposure and strong management of material ESG issues. The company is noted for its strong corporate governance performance, which is reducing its overall risk.”
Sustainalytics ESG risk rating report, January 2021
This places Mitie:
- 88th out of 13,404 organisations globally; and
- in the 2nd percentile (1st = lowest risk)
MSCI Rating (AA)
MSCI is a leading provider of critical decision support tools and services for the global investment community.
In MSCI’s December 2020 ESG Rating Report (dated 04 December 2020) Mitie was rated as AA. This is the second highest rating available and means that only 4% of rated MSCI ACWI Index constituents, Commercial Services & Supplies were ranked higher than Mitie.
*The use by Mitie of any MSCI ESG research LLC or It’s affiliates (“MSCI) data, and the use of MSCI logos, trademarks, service marks or index names herin, do not constitute a sponsorship, endorsement, recommendation, or promotion of Mitie by MSCI. MSCI services and data are the property of MSCI or its information providers, ad are provided ‘As is’ and without warranty. MSCI names and logos are trademarks of MSCI.
Mitie have reported to the Carbon Disclosure Project for the last 10 years and will continue to do so. Mitie are also subject to report to the CDP Supply Chain by a number of clients.
In the December 2020 CDP Report Mitie received an A- score which is in the Leadership band, meaning Mitie is implementing current best practices. Mitie is the leading UK based Facilities Management provider.
In 2020 Mitie signed up to the CDP Reporter Services Membership and have had an independent third-party verification of direct and indirect carbon dioxide equivalent emissions (CO2e) as provided in the 2019-20 company annual report and accounts to a limited level of assurance. This verification exercise has been performed by Carbon Intelligence to the ISO 14064-3 standard. The Verification Statement can be downloaded here.
In the face of rising fuel costs, stricter emissions targets, and a need to address climate change, fleet electrification marks a dramatic step towards reducing the financial and environmental cost of doing business. In December 2018, Mitie became the first major UK FM provider to launch an electric vehicle (EV) fleet. By the end of 2020, over 900 of our compact vans and cars were fully electric, and by the end of FY21/22, over 2022 of these will be.
We are a member of EV100, with the commitment to fully electrify our fleet by 2025* in our drive to achieve net zero carbon emissions.
We are also members of:
Go Ultra Low
Clean Van Commitment.
Mitie are reducing our fuel consumption year on year. Current fleet initiatives include:
- Route Planning to minimise unnecessary travel
- Speed Limiters on all commercial vehicles (68mph)
- Telematics, including speed enforcement policy
- Vehicle Selection to limit engine size to less than 110g/kmCO2
- Driver Training that promotes safe, economical driving
- Driver Awards to recognise good driving behaviour
- Mileage Capture App that can monitor driver behaviour (speed, acceleration, harsh braking)
- Carbon Avoidance via a strategic partnership with Microsoft (Skype / Teams)
- Connected Workspace providing remote BMS connection to reduce travel to site
Mitie partner with sustainability software and learning specialists Ditto Sustainability to deliver personalised training programmes for our employees and customers. A core component of this partnership is the provision of the CPD accredited ‘ResourceAware’ eLearning platform covering Energy, Water and Waste. Further bespoke modules include Sustainable Transport, Plastics, Social Value and the United Nations Sustainable Development Goals.
Greenhouse Gas (‘GHG’) Emissions as detailed in the 2020/21 Annual Report.
At Mitie, we see the climate emergency as a business-critical issue that needs to be addressed within our operations. In 2019, we achieved our goal to reduce our carbon footprint (scope 1&2) intensity by 35%; and the following year we launched our industry-leading ‘Plan Zero’ commitment to set a clear pathway on how we will decarbonise our business and reach net zero Scope 1 and 2 emissions by 2025. We have now gone further, and committed to a science-based target of net-zero supply chain (Scope 3) emissions by 2035. Plan Zero focusses on three key areas;
Eliminate carbon emissions from power and transport,
Eradicate non-sustainable waste
Enhance inefficient buildings to meet the highest environmental standards.
Due to the acquisition of Interserve, 2019/20 is our new baseline year to compare future emissions against.
We have achieved year-on-year reductions in our carbon intensity trend. Our FY20/21 emissions ratio has decreased by 28% from FY19/20, to 8.98 tCO2e/£m Revenue (Scope 1&2).
Our effort to reduce our carbon emissions focuses on reducing the impact of our fleet which contributes to 94% of our total scope 1 and 2 footprint; we are on target with our short-term carbon goal to run 30% percent of our company small van and car fleet using electric vehicles by the end of 21/22, and 100% by 2025. We are amidst a fleet transformation project to standardise our current vehicles with newer more efficient vehicles, part of this project has been to ensure that all commercial vehicles are installed with speed limiters and telematics to improve driver behaviour.
EcoVadis is a provider of business sustainability ratings, intelligence and collaborative performance improvement tools for global supply chains. We hold a Gold Award.
- Mitie ID – Mitie Group Plc
Sedex is one of the world’s leading ethical trade service providers, working to improve working conditions in global supply chains. They provide practical tools, services and a community network to help companies improve their responsible and sustainable business practices, and source responsibly.
- Mitie ID – Company Reference: ZC1049314
- Company Type: Supplier (B Member)
- Company Name (Local Language): Mitie Group (Utilyx Ltd)
We have launched a new industry-leading ‘Plan Zero’ commitment, pledging that we will reach net zero Scope 1 and 2 emissions by 2025.
Plan Zero is focused around three key pillars, encompassing the key areas of environmental impact for our business, with specific targets to:
- Eliminate carbon emissions from power and transport
- Eradicate non-sustainable waste
- Enhance inefficient buildings to meet the highest environmental standards
Social Value & Responsible Business
As a responsible business that embraces the UN’s Sustainable Development Goals, we seek to unlock social value that creates positive economic, environmental and social impacts.
This bold ambition ensures that we play our part in delivering the exceptional, every day for our customers, our people, the communities we support and the world in which we live.
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