Environment, Social and Corporate Governance
Mitie’s commitment to ESG underpins everything we do, from how we deliver for clients, to supporting our colleagues and protecting both people and planet by prioritising sustainability.
ESG Report 2023
Mitie’s latest ESG Report outlines progress across all areas of our Environmental, Social and Governance strategy and shares key achievements for each of the five pillars of our framework: Environment, People, Community, Responsible Supply Chain and Innovation.View our latest report
Explore our ESG strategy
Mitie is a profitable, socially responsible and environmentally sustainable business, but there’s still so much to do. Our ESG strategy sets out actions and outcomes within the Mitie Group to drive positive change, such as reaching net zero years ahead of the UK Government’s 2050 target.
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 overseen by Jason Roberts, Group Director of Sustainability & Social Value. Jason is an accredited Low Carbon Consultant (Cibse register LCEA132377).
Mitie has set 14 industry leading ESG targets. These targets all relate to Mitie’s Social Value Framework, and the focus areas highlighted within the following pillars of Environment, Responsible Supply Chain, People, Community – with our fifth Innovation pillar embedded throughout.View our ESG targets
In our FY23 reporting, we have included the supply chain segment of our Scope 3 emissions for both FY22 and FY23, and increased commuting and working from home figures to cover all colleagues for FY23, resulting in a significant increase on previously reported figures. We have also reported overseas Scope 1 and 2 emissions data for the first time. As such, we have reviewed our carbon targets to ensure they are aligned with the expanded scope of our reporting and are sufficiently stretching, please see the table below which shows our FY22 performance, and our targets from FY23 onwards. We have introduced a new baselined target for Scope 3 emissions and, moving forward, we will have two separate carbon targets to support our Net Zero commitments for Scope 1 and 2 by 2025, and Scope 3 by 2035.
|Scope 1 & 2 (tonnes)
|Scope 3 (tonnes)
*The baseline for Scope 1 & 2 emissions remains the same for FY23, reflecting the UK only targets.
** From FY24 onwards, the targets have been updated to include both UK and overseas reporting.
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 ESG 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 Social Value Model PPN06/20 and the National TOMs – Themes, Outcomes and Measures 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 two facilities management company globally, based on the Sustainalytics ESG risk rating report.Download our ESG Dashboard
In FY23, Mitie globally produced 22,439 tCO2 Scope 1 and 2 (location based) and 22,006 tCO2 (market based). This was the first year we expanded our reporting to include all overseas, which together with business growth and acquisitions, has caused an 9% increase since FY22, using location based figures. We have therefore re-baselined as described above.
We completed a baselining activity in FY22 to understand our supply chain emissions, and therefore complete our Scope 3 inventory. FY23 was the first year we have completely reported this full inventory, and our FY23 Scope 1, 2 and 3 figures have all been externally verified. Mitie produced 246,018 tCO2 supply chain emissions, a 9% reduction from FY22. Comparing our full Scope 3 emissions in FY23 to our new FY22 baseline, we have made a 9.6% reduction, to 300,114 tCO2.
98% of our total Scope 1 and 2 emissions come from our >7,100 strong vehicle fleet. We have therefore accelerated our electric vehicle (EV) transition and have 3,194 EVs on the road. A further break down of this data, including Scope 3 categories can be found within the ‘Mitie Group Environmental Data’ section below.
Over 76% of our total emissions are linked to our supply chain. To tackle this, we are increasing engagement with our suppliers, and have received validation from the Science Based Target initiative for our supply chain target; 60% of our suppliers (by spend), covering purchased goods and services, upstream transportation and distribution, will have committed to a science-based target methodology by FY27.Download Mitie's Carbon Reduction Plans
Clean sources of energy
Mitie has one of the largest pure electric vehicle (EV) fleets in the UK, with 3,194 currently on the road. This transition to an electric fleet aligns to our signatory to EV100, The Climate Group’s initiative to commit organisations to transitioning to an EV fleet by 2030. We celebrated our 3,000th EV in December 2022, assigning it to our Landscaping business due to its roof being topped with solar panels that charge electric tools in the van – perfect for our Green City contract which delivers innovative sustainable solutions to customers in urban environments. 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, and are looking to ensure our EVs are charged with green energy through REGOs too.
As Mitie’s estate is ever changing, due to acquisitions, we are continuously implementing optimisation initiatives across our sites. We procure 100% green energy for the sites we control and have decarbonised nine sites through replacing boilers with air-source heat pumps, with plans to decarbonise five further sites during FY24. Transitioning to these low-carbon alternatives will tighten our grip on Mitie’s energy consumption and decarbonise our heating systems. Mitie’s estate is also undergoing green CAPEX projects, including installing LED lighting systems.
Over 2,800 EV charge points have been installed across both the Mitie estate and client sites, supporting transitions to an EV 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 have saved our customers 350,000 tonnes of verified carbon through our innovative Energy Performance Contracts alone. During FY23 we delivered decarbonisation services to 372 clients last year, tackling >800 sites including Vodafone. Our decarbonisation pathways also covered 1,700 buildings for 28 clients. We developed a decarbonisation plan for one of the largest fast-food companies in the world, which will save them around 33,000 tonnes CO2e and 175GWh of energy annually, ensuring they achieve their 2030 net-zero targets.
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. This expertise has led to the launch of Mitie Plan Zero – Decarbonisation, Delivered™, our campaign that supports customers to accelerate progress on decarbonisation of their built environment and fleet. Our range of services help to realise Net Zero ambitions while minimising disruption to operations. Please visit our dedicated page for more information.
Mitie’s new global baseline Scope 1 and 2 emissions are 20,596 tCO2e in FY22. Our next milestone target to achieve is 16,900 tCO2e in FY24, and to be net-zero in our Scope 1 and 2 emissions by 2025. 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 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 FY21/22 emissions have been third-party verified to ISO14064-3 standards, and our FY21/22 Social Value metrics have also been verified, both 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.
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 >6,700 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 November 2021 Sustainalytics ESG risk rating report, Mitie were rated number 2 out of all ranked business support services companies globally, with a 12.5 Low Risk score:
The company is at low risk of experiencing material financial impacts from ESG factors, due to its strong ESG risk management. Although being rated ‘Low Risk’ Mitie was awarded the highest ranking, ‘Negligible Risk’ in six out of the eight areas assessed. These categories include its carbon reduction plans, occupational health and safety, data privacy and security, and bribery and corruption. Mitie was also rated leader status for its Board Structure, all of which is reducing its overall risk.
This places Mitie in the 5th percentile globally, out of the 14,654 companies Sustainalytics covers (1st = lowest risk).
Mitie received the highest ranking ‘Platinum Award’ in SFMI’s 2022 report, seeing the business jump from the ‘Gold Award’ achieved in 2020.
The SFMI is the only sustainability benchmark for the UK’s facilities management sector. The ranking is compiled following the completion of three independent audits to assess the business’ performance across 23 criteria covering a wide range of issues, including sustainability, social value, energy, health and safety, employee development and diversity. In order to achieve the top Platinum Award, businesses must demonstrate leadership across all of these criteria, resulting in a score of 85 points or more.
MSCI Rating (AA)
MSCI is a leading provider of critical decision support tools and services for the global investment community.
In MSCI’s December 2022 ESG Rating Report (dated 27 April 2022) Mitie was rated as AA. This is the second highest rating available and means that only 7% 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 13 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 2022 CDP Report Mitie received a B score which is in the Management band, and we are aiming to increase our score back up to the A: Leadership band. 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) to a limited level of assurance. This verification exercise has been performed by Optera 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
With support from the Supply Chain Sustainability School, in addition to working alongside Rio Learn, who specialise in providing accessible sustainability skills and CPD through flexible online learning, we are now providing a 12month education programme; “Action Now”. The “Action Now” campaign focuses on getting sustainability to the frontline. Providing a quarterly focus on areas of environmental learning including Carbon, Energy and Biodiversity, Social Value, Circular Economy and Resource Efficiency, and Sustainable Procurement. The basis of this campaign is for all 64,000 employees to have access to information and resources that provide a good understanding of environmental topics embedding a golden thread of sustainability in Mitie’s workforce.
Greenhouse Gas (‘GHG’) Emissions as detailed in the 2023 Annual Report.
At Mitie, we see the climate emergency as a business-critical issue that needs to be addressed within our operations. Due to significant business growth, acquisitions, and increased reporting, our emissions intensity decreased by 1% in FY23, to 5.21tonnes CO2e/£million revenue. This is a comparison using UK-only data, as we did not collect our overseas emissions in FY22, therefore don’t have a like-for-like comparison here.
EcoVadis is a provider of business sustainability ratings, intelligence and collaborative performance improvement tools for global supply chains. We hold a Silver 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)
Water is a precious resource and we recognise that in our day-to-day operations, we have an impact on the environment and are committed to reduce that impact through continual improvement. Our water management strategy stems from our Integrated Management System that meets the requirements of BS EN ISO 14001:2015 as well as an environmental Aspects and Impacts Register specific to our service delivery which ensures our business procedures and processes are carefully monitored, measured, and controlled to promote a continual improvement in our environmental performance.
Mitie’s industry-leading Plan Zero initiative commits us to achieving net-zero Scope 1 and 2 emissions by 2025, and net-zero Scope 3 emissions by 2035. We have also received validation from the Science Based Target initiative (SBTi) for near-term, long-term and net-zero targets – one of 219 organisations to achieve validation across all three categories. We know we can go further and faster than the SBTi trajectory, so remain committed to our more ambitious 2025 and 2035 dates stated above.
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
The Science of Service
At Mitie, we believe that facilities management is key to answering some of your biggest strategic and operational questions. By harnessing the power of industry-leading innovation, insight, and exceptional people, we’ve found a better way to deliver the solutions you need.
We call this the Science of Service.Find out more
Social value framework
Mitie is proud to integrate the Government’s Social Value Model throughout the business. To ensure maximum positive impact, we break our social value commitments down into five key pillars: Environment, People, Community, Responsible Supply Chain and Innovation.
Mitie is a responsible business committed to eliminating our impact on the environment and mitigating the effects of climate change with our ambitious Plan Zero strategy. Mitie was the first facilities management company to set such a target of reaching net zero carbon by 2025, which is 25 years ahead of the UK Government’s 2050 target. Clients on their own decarbonisation journeys benefit from Mitie’s inhouse experts, technology and experience. We are on a mission to decarbonise Britain, reducing customer emissions, with corresponding energy savings. Mitie has one of the UK’s largest electric vehicle fleets and has committed to achieving an 85% EV fleet by 2025.
People are Mitie’s greatest asset. By embedding ESG objectives into our people strategy, we drive not only employee fulfilment, wellbeing and performance, but enhance service quality for customers. Making Mitie a great place to work helps retain the best talent, who are supported to progress their careers and experience, which also positively impacts delivery. With 72,000 colleagues and 155 nationalities, Mitie is an incredibly diverse organisation, which helps ex-offenders and military veterans to find new jobs, offers a variety of apprenticeships and has seven colleague diversity networks, each with an executive sponsor. Mitie is proud to be a 2022 Inclusive Top 50 UK Employer.
Mitie plays an active role in the communities in which we operate, helping to deliver social value commitments not only for ourselves, but also for our customers. Through our Giving Back programme, colleagues are encouraged to use their annual volunteering day to support local causes and make a difference. From litter picks to gardening and career advice to fun days, communities have benefited from our colleagues’ hard work and dedication. In FY21/22, Mitie registered 14,650 volunteering hours, which is over 600 days.
With over 12,500 suppliers and a focus on small to medium enterprises, as well as voluntary, charity and social enterprises, Mitie recognises the positive impact associated with responsible procurement. Through our supply chain we support social enterprise and local delivery, and we contribute to the circular economy though waste reduction and repurposing of materials. All suppliers are expected to follow our high standards, as laid out in our Supplier Social Value Policy. The launch of mitiesuppliers.com in 2022 has proved critical to collaborating and communicating with our supply chain partners. They must provide best value in terms of cost, quality, safety and risk management, and also uphold ethical business practices and comply with legislation.
The Innovation pillar is embedded within all the others, ensuring Mitie remains at the forefront of technology and processes. In 2022, we launched our Science of Service approach, providing a solution to customers requiring greater workspace hygiene, intelligent security, and critical asset monitoring backed by data analytics. Our technology is driving productivity and cost efficiencies, supporting margin enhancement and consolidating innovation’s place at the heart of Mitie’s delivery.
Championed by Phil Bentley, CEO, Mitie’s formal governance framework underpins our operations. In addition to the three main Board Committees, Mitie has an ESG Committee, Disclosure Committee and an informal Bid Committee. The ESG Committee is chaired by Salma Shah, an Independent Non-Executive Director.
The ESG Committee met six times during FY23. Its purpose is to drive the Group’s ESG agenda and ensure we conduct our business in a commercially responsible way.
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