Environment progress
At Mitie, environmental leadership is not a destination, it is a discipline embedded in how we operate, invest and make decisions every day. FY26 marks the conclusion of Phase One of Plan Zero, the most significant milestone in our five-year decarbonisation journey, and the beginning of an ambitious new phase that reflects the scale and ambition of the business Mitie is today.
Completing Phase One of Plan Zero
Phase One of Plan Zero, launched in 2020, set out an industry-leading pathway to Net Zero for Scope 1 and 2 direct operational emissions by the end of 2025. We are proud to report that we have delivered against that commitment. At 31 March 2026, 76% of Mitie's legacy fleet had transitioned to EVs with 6,406 EVs in operation, more than 2,400 vehicles beyond our original expectations. Following the acquisition of Marlowe and the addition of approximately 1,900 vehicles, electrification across the enlarged Group fleet stood at 67%. Alongside the procurement of 100% renewable electricity for our estate and EV charging, we have achieved an effectively Net Zero position for Scope 1 and 2 emissions on a market-based reported basis. While this position does not yet meet the stricter technical definition of Net Zero under STBi, it represents a material milestone in Mitie’s transition, with Phase One establishing a proven and scalable decarbonisation model.
Scope 1, 2 and 3 emissions performance
Our absolute Scope 1 and 2 emissions (location-based) for Mitie, excluding Marlowe, reduced by 6% in FY26 to 18,992 tCO2e. On a market-based basis, inclusive of verified carbon credits, our net Scope 1 and 2 position reduced to 8,399 tCO2e, a 34% reduction year on year, reflecting the continued acceleration of our EV transition and renewable energy procurement.
Scope 3 emissions reduced by 3% to 245,781 tCO2e, supported by improved supplier data, enhanced emissions modelling and ongoing supply chain engagement. Supply chain and commuting emissions remain the largest component of our total footprint at 90%, reinforcing the importance of our Scope 3 decarbonisation roadmap as we move into Plan Zero 2.0.
Read more in the Data section.
Marlowe acquisition and re-baselining
The acquisition of Marlowe in August 2025 brought significant additional emissions into the Group, including approximately 1,900 fossil fuel vehicles. Rather than adjust historic figures, we have re-baselined our emissions on a full-year equivalent basis in line with GHG Protocol guidance, establishing a credible FY26 baseline of 325,300 tCO2e across Scopes 1, 2 and 3 for the enlarged Group.
The acquisition also impacted fleet electrification performance. While Mitie's legacy fleet reached 76% electrification during FY26, the addition of the Marlowe fleet resulted in electrification across the enlarged Group fleet of 67%, establishing a transparent and credible baseline for future fleet transition targets.
This provides a robust and transparent platform for our new emissions-intensity target, which runs from FY26 to FY31 and is calibrated to deliver a 50% absolute reduction by 2030.
Estate decarbonisation and energy efficiency
We continue to expand our estate decarbonisation programme. In FY26, we operated 28 fully decarbonised buildings, up from 16 in FY25, and continued our programme of replacing gas boilers with low-carbon heat pumps, installing LED lighting, deploying solar photovoltaic (PV) systems and expanding battery storage. We maintain our ISO 50001 Energy Management certification across the Group and our in-house energy managers ensure that our buildings operate at optimum efficiency.
Circular economy and waste
Circular economy performance also improved in FY26. Our recycling rate increased to 66%, up from 59% in FY25, and we maintained zero waste to landfill across all Mitie-controlled sites, a record we have held continuously since July 2022. Total waste across occupied buildings was 395 tonnes, and we continue to embed resource efficiency and circular economy principles into our operations through initiatives including ReWorkwear and Mitie Clear Workspace.
Looking ahead: Plan Zero 2.0
Plan Zero 2.0 now begins. With a re-baselined, science-aligned trajectory, a commitment to resubmit to the SBTi for validated 1.5°C-aligned targets, and a clear focus on Scope 3, we are building the next phase of our decarbonisation journey on honest foundations and with the determination to go further.
The transition to a low-carbon economy will be one of the defining transformations of our generation. We see this not only as a responsibility, but as an opportunity to innovate, create value and help shape a more resilient future. By working alongside our customers, suppliers and industry partners, we have the opportunity to drive change at scale, accelerating emissions reductions far beyond our own operations.
Plan Zero 2.0 is therefore more than a climate strategy. It is our commitment to leadership, collaboration and continuous progress. While the challenge ahead is significant, so too is the opportunity. We approach this next chapter with confidence, ambition and a belief that the actions we take today can help create a more sustainable future for the businesses, communities and generations that follow.
