Objectives and priorities

We are committed to accelerating the global transition to a Net Zero world, aligned with the goals of the Paris Agreement. Our award-winning environmental initiative, Plan Zero, follows a ‘do, lead, deliver’ approach where we do it for ourselves through accelerated carbon reduction in our fleet, lead the industry with ambitious and stretching targets, and use our in-house expertise to deliver exceptional decarbonisation services for our customers. Read more: Our ESG progress in FY26

Business model implications

Our ESG strategy is aimed at achieving key outcomes over five years and supporting customers in driving social change and transitioning to Net Zero. This approach helps us to build resilience, adapt to market changes and ensure long-term viability. We are committed to responsible practices to attract and retain eco-conscious stakeholders and explore new technologies to improve energy efficiency. Read more: Our ESG Strategy

Mitie publishes Carbon Reduction Plans against the UK Government’s Procurement Policy Note 006. Our plans can be found on our website: tinyurl.com/4P5BVB9A. Mitie reports all material carbon emissions from its value chain in the UK and in its overseas operations, and our Scope 3 target includes upstream emissions in line with the GHG Protocol. Mitie ensures that all GHG emissions are externally verified and available on the company website www.mitie.com/esg. Read more: GHG Reporting

Business planning and operations

Strategy to achieve our targets:

• Eliminating Scope 1 emissions (fossil fuels) from our operations (where technology allows)
• Drive down energy consumption and adopt natural renewable sources for Scope 2 electricity emissions
• Measure, report and influence Scope 3 emissions throughout the value chain to align with the two points above
• Source credible and verified carbon credits for both social and nature-based projects to balance our Net Zero commitment

Read more: Our ESG Strategy

Our Plan Zero initiative incorporates an award-winning decarbonisation strategy that targets our material carbon emissions through various levers. Our extensive fleet of >9,800 vehicles is our primary source of direct operational carbon emissions (>90%) and, since 2019, we have been transitioning our vehicles to a full battery electric solution and have over 6,000 (67%) EVs in operation.

We have 28 fully decarbonised offices in our estate and are continuing to invest in further built environment carbon emission reductions. We procure green energy for the premises where we are in control of the energy, and have been implementing a programme of decarbonising the heating systems through replacement of existing gas boilers with low-carbon heat pumps. Read more: Our progress

We have undertaken a climate scenario analysis concentrating on the physical risks associated with climate-proofing our direct and indirect operations and the necessary investment for adaptation requirements. In FY26, we are working with Marsh, our insurance broker and risk advisor, to assess and quantify our exposure to climate-related transition risks and strengthen our understanding of their potential business impacts. Read more: Risk and resilience

Services

Our unique position of attaining an in-house Sustainability Consultancy allows Mitie to become a leader in carbon reduction, accelerating not only our journey to Net Zero, but that of our clients too. Mitie Plan Zero – Decarbonisation, Delivered™ is our campaign to support our customers, suppliers and the wider industry to set stretching Net Zero targets and achieve them, through offering our holistic end-to-end decarbonisation services.

We are market leading in our ability to combine energy, transport, circular economy, ecology and sustainability services via an integrated Plan Zero offering for the management of all utilities via our self-delivery model. Our strategy is to continue to invest in utilities, biodiversity and carbon efficiency solutions through acquisitions, with a target of significantly growing the business from where it is today. Read more: Decarbonisation, Delivered^TM

Policies and conditions

Mitie operates an EV-first policy with regard to all new vehicle leases to transition away from fossil fuels. Where EV and battery technology is not advanced to maintain suitable operational deployment, such as for trucks, 4x4s and high-mileage drivers, diesel options will be used in the short term. Read more: Plan Zero initiatives

We will collaborate with our supply chain to enable them to decarbonise their operations in line with our own journey. We expect our suppliers to follow environmental best practice throughout their engagement with Mitie in the delivery of their services and adhere to all policy and procedure requirements, as detailed in our Social Value Guide for suppliers. Read more: Creating a responsible supply chain

Value chain

Our aim is to support our customers in driving positive environmental change. Our strong relationships with more than 3,000 public and private sector organisations position us as key promoters of sustainability. We collaborate with customers, communities and partners to foster carbon reduction to aid a transition to Net Zero, through initiatives such as decarbonisation, biodiversity and circular economy programmes. Read more: Decarbonisation, Delivered^TM

We actively engage with our strategic and preferred suppliers to encourage them to improve data quality, measure environmental performance, publicly disclose carbon emissions and set their own science-based targets. Read more: Creating a responsible supply chain

Engagement with industry

As the leading Facilities Transformation business in the UK, we have the potential to positively impact the environment, make a significant difference in the workplace and deliver tangible carbon reductions to our customers, local communities and beyond. Our carbon reduction strategies are aligned to external international standards, which is reflected in our Group-wide ISO 50001 energy management and ISO 14001 environmental management systems accreditation.

We are members of three Climate Group initiatives – the Smart Energy Coalition (formerly EP100), EV100 and RE100 – reflecting our commitments to improving energy productivity, transitioning to EVs and sourcing renewable electricity. Aligning to the Climate Group allows us to benchmark our achievements, gives us access to a community on its own Net Zero journey, and provides opportunities to lobby for improvements relating to decarbonisation, such as green infrastructure and EV policies.

We are signatories to the Climate Pledge and the Business Ambition for 1.5°C through Race to Zero. We received third-party verification for our FY26 GHG data to ISO 14064-3 standard from our external third-party auditor. We support the new mandatory sustainability reporting standards to create greater transparency such as ISSB, European Financial Reporting Advisory Group and Global Reporting Initiative. Read more: Recognition for our progress and achievements

Government and other external stakeholders

Mitie is a trusted partner and leading provider of outsourced services to the public sector, including many public authorities and ministerial departments. The government has committed to ambitious carbon reduction targets and is therefore expected to embrace innovative new approaches to the use and maintenance of its estate and assets over the coming years. Read more: Risk and resilience

To address the green skills gap, we continue to grow our apprenticeship programmes by supporting the development of a future talent pipeline, and to increase the use of our Apprenticeship Levy funds. Read more: Developing our talent

Operational metrics and targets

We work on our customer sites and therefore our largest environmental impact for direct operational emissions (Scope 1 and 2) is our fleet at more than 90%. To date, we have successfully transitioned 67% of our fleet from fossil-fuelled vehicles to full battery electric to create one of the largest electric fleets in the UK.

GHG metrics and targets

We publicly report progress against 13 ESG targets on our website. To continue our progress for achieving Net Zero carbon emissions prior to the government’s target of 2050, Mitie has adopted the following carbon reduction targets, which are more ambitious than our validated science-based targets. Read more: Our ESG strategy

• Short term – delivered a near‑Net Zero outcome for Scope 1 and Scope 2 direct operational emissions, consistent with our Climate Transition Plan
• Medium term – committed to a 50% reduction in Scope 3 emissions by 2030
• Long term – committed to a Net Zero carbon target by 2035 (Scope 3)

Financial metrics and targets

We have identified climate-related risks and opportunities with potential financial and strategic impacts, primarily arising from extreme weather events, our transition to EV and our mergers and acquisitions strategy to invest in decarbonisation growth levers. Successfully executing this plan is expected to reduce our financial risks. Read more: Risk and resilience

Carbon credits

Mitie prioritises absolute emission reduction and, where we cannot take direct action to reduce the hard-to-abate residual carbon emissions, we will purchase verified carbon credits with a balanced portfolio of social and nature-based projects. We will disclose the details of our carbon credit portfolio on an annual basis. Read more: GHG reporting methodology statement for FY26

Board oversight and reporting

The Board has overall responsibility for sustainability, environmental and climate-related matters. It reviews climate-related risks and opportunities as part of its principal risks and business strategy considerations. Mitie publicly discloses its carbon emissions on the website, in the Annual Report and ESG report, and to CDP.

Roles and responsibilities

Our four levels of governance enable us to: have a platform to implement initiatives; understand the risks involved; develop opportunities for additional business growth; oversee the full programme for climate-related matters – incorporating environmental, sustainability and social value; and regularly report our progress towards meeting our targets. Read more: Governance

Culture

Our size and reach with the leading organisations we work for establishes us as a key influencer, and with our in-house decarbonisation solutions and initiatives, we can mitigate climate change and improve the environment in the communities we serve.

Remuneration

The Chief Executive Officer (CEO) and Chief Financial Officer have ESG as an underpinning consideration linked to the Long-Term Incentive Plan to drive sustainability throughout the organisation. Various senior managers receive bonuses linked to performance in this area. Read more: Culture and workforce engagement at Mitie

Skills, competency and training

It is critical that we upskill all our colleagues in sustainability topics, and we are executing this through our apprenticeship programme and our awareness and knowledge campaign – ‘Action Now – Transforming Tomorrow, Together’. Read more: Developing our talent