Committed to net zero carbon emissions by 2030

Our Net Zero 2030 target, announced in 2021, will see SMS drastically reduce carbon emissions across our buildings and fleet operations, striving to achieve zero emissions by the end of the decade.

We are proud to be utilising our passion, energy expertise, and innovation to be part of the climate change solution, within both our operations and services.

Our net zero journey

SMS’s net-zero 2030 roadmap is actively being realised through a variety of sustainability measures rolled out organisation-wide in a phased manner. This includes increased adoption of renewable on-site generation and battery storage to power core sites across the Group’s UK and Ireland estate and the transition of SMS’s nationwide fleet to low-carbon and electric vehicles (EVs). Our target encompasses:

Scope 1: the direct greenhouse (GHG) emissions that occur from sources that are controlled or owned by our organisation
Scope 2: indirect GHG emissions associated with the purchase of electricity
Within these categories, our tracked fleet stands at 3,200TCO2e, and buildings at 215 TCO2e in 2023

To manage the delivery of the target, we have developed and implemented an ISO 50001:2018 certified Energy Management System as well as an Integrated Quality, Environmental and Occupational Health and Safety Management System, which uses the ISO 9001:2015, ISO 14001:2015 and ISO 45001:2018 standards as a framework to document and improve operational practices. Our net zero programme is also being implemented in line with the Greenhouse Gas (GHG) Protocol and Institute of Environmental Management and Assessment (IEMA) Hierarchy.

2021

All internal combustion engine (ICE) company cars at the end of their lifecycle replaced with plug-in hybrid electric vehicles (PHEV) or pure electric vehicles (EV) where possible.

2021

Commenced rollout of renewable energy installation and efficiency upgrades at key buildings.

2025

16% reduction of total fleet and building
emissions on 2022 baseline.

2030

42% reduction of total fleet and building
emissions on 2022 baseline

2030

All remaining core sites to have renewable generation, fabric, and energy efficiency upgrades completed.

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2030

SMS to focus on reducing Scope 3 carbon emissions across the value chain.

Our progress so far

Image showing an SMS Van parked outside a residential property

Fleet

All company cars replaced with hybrid or EV models
We deployed 100 Mild Hybrid (MH)EVs and operated one pure EV van from March 2023

Buildings

Completed sustainability upgrades on our first office based in Cardiff, including solar panels, on-site battery storage and air source heat pump installations, as well as replacement of windows.
Package of on-site solutions will aggressively reduce emissions, delivering more than 60% reduction in emissions and transitioning away from gas use.

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Energy storage

2023 saw the continued growth of our grid-scale battery storage sites, providing vital support for the decarbonisation of the UK’s power grid.
Our battery-related emissions now represent the majority of our total emisisons, and are included in our new intensity-based metric which has been developed in line with Science Based Target Initiative (SBTi) guidance.

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reduction in total building
emissions (scope 1 & 2)*
*compared to 2019

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reduction in emissions to be achieved at our Cardiff site once building upgrades completed

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100 MHEVs deployed, supporting our continuous steps on fleet decarbonisation.

The Climate Pledge

To formalise and reinforce our commitment to achieving net zero, we have become a signatory of The Climate Pledge – a cross-sector community of companies and organisations working together to address the climate crisis and solve the challenges of decarbonising the economy.

Companies and organisations that sign the Pledge commit to three areas of action:

Regular reporting
Carbon elimination
Credible Offsets

More about our Climate Pledge here

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Overall Net Positive Impact

With our commitment to improving operational sustainability combined with the impact of our energy-saving services, we are already having a ‘net positive’ effect on our environment. Being net positive means we mitigate more carbon emissions through our services (known as our ‘carbon handprint’) than we produce through our internal operations (our ‘carbon footprint’).

In 2023, we mitigated more than 76,800 tonnes of carbon emissions (TCO2e) through the installation of smart meters in the domestic and non-domestic markets, and energy efficiency services we carry out for industrial, commercial, and public sector clients.

For the third year in a row, our net-positive impact was recognised by the London Stock Exchange (LSE) through the ‘Green Economy Mark’, which is awarded to LSE-listed organisations that generate more than 50% of annual revenues through green services.

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76,000 tonnes of carbon emissions (TCO2e) saved in 2023 through delivery of our services

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Our carbon handprint was more than 2.8 times larger than our carbon footprint in 2023

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Cardiff office upgrades have already
achieved 14% year on year reduction in electricity on the 2019 baseline.

Scope 3 emissions: 2030 and beyond

Our long-term carbon reduction ambition goes way beyond 2030. On reaching the net zero goal at the end of the decade, we aim to become a carbon negative business. This means we’ll mitigate more carbon emissions from the atmosphere than we create through our operations.

We plan to do this by reducing Scope 3 emissions, or the emissions of activities from assets not owned or controlled by our business, but that we indirectly impact through our work (such as the CO2 created by our supply chain).

Image showing an SMS worker taking a picture inside a warehouse

As a sustainably focused, purpose-led business with a mission to deliver the future of smart energy, our long-term commitment doesn’t end at 2030. Going forward, we’ll aim to target reductions in our Scope 3 carbon emissions across our value chain, whilst also continuing to make other positive social and environmental impacts across our communities.”

Tim Mortlock

CEO of SMS

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