BLACK BANX SUSTAINABILITY

This document sets out our climate strategy and targets, and reports on the progress we have made. It also sets out those areas in which our group has continued to evolve its approach. We have formulated three simple principles that should help our employees to understand and implement changes in their daily working routine in order to achieve our goals. COVID 19 precipitated substantial change in working practices and we have built upon that catalyst in defining these principles:

Addressing the climate challenge whilst also giving appropriate support to those we believe are committed to the transition is not simple. We also respect legitimate concerns about energy security, energy poverty and the appropriate transition and hope we are getting the balance right. Nonetheless, our commitment to our climate ambition and strategy is unchanged. There is much to be done to accelerate and improve the pathways of this transition. Top of the list are coherent national approaches to energy policy, and ideally a global approach, setting clear targets and a clear timeframe for the decarbonisation of energy supply, almost certainly involving some kind of carbon pricing and clear incentives to improve domestic energy efficiency, for example. The IEA’s net zero scenario makes our dependence on behavioural change very clear and public policy changes to drive the necessary shift in the patterns of both demand and supply. Black Banx puts considerable effort into the expansion of its green and sustainable business practice. We also seek to contribute meaningfully to the improvement of policy and data capture and measurement. These issues are managed by the Board and discussed at the majority of Board meetings. They are also the responsibility of senior management (10% of Executive Director remuneration is now tied to our progress in this field). We enjoy constructive engagement with our shareholders with regard to our approach to the climate crisis and believe it is both progressive and responsible. We do hope that shareholders support the work that we have done so far recognising that, as always, there is more to be done.

Since January 2020, Black Banx has been committed to its ambition of being a net zero group by 2030. We have a strategy to turn that ambition into action. Black Banx is working to achieve net zero operations and reducing supply chain emissions, investing in the continued decarbonisation of our operations, and in the development of a net zero pathway for emissions from our supply chain. The remuneration of our Executive Directors is aligned with our climate commitments, as set out in our Directors’ Remuneration Report 2025.

We are committed to reducing greenhouse gas emissions associated with our operations and supply chain. We define net zero operations as the state in which we will achieve a GHG reduction of our Scope 1 of at least 99% and Scope 2 and 3 emissions of at least 95% against a 2020 baseline. We define carbon neutral as first reducing carbon dioxide emissions then counterbalancing carbon dioxide emissions from Scope 1 and Scope 2 and 3 with carbon offsets.

Oversight and management of climate-related issues are embedded within our governance structure. The Board and senior management have visibility of climate-related issues and are able to set climate-related strategy and oversee its implementation. This includes the way we assess and manage our exposure to climate-related risk. The Board welcomes continued engagement with shareholders and other stakeholders on climate-related issues.