Committed to net zero carbon emissions by 2030
Our Net Zero 2030 target, announced in 2021, will see SMS drastically reduce organisational carbon emissions in order to achieve a balance of carbon neutrality across our business.
By the end of the decade our operations will cancel out as much CO2 from the atmosphere as they produce, significantly reducing our impact towards climate change.
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 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
- Of this, our tracked fleet represents 90% of our target emissions, and the operation of our buildings represents the remaining 10%
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.
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.
Commenced rollout of renewable energy installation and efficiency upgrades at key buildings.
All domestic fleet to have transitioned to PHEV and EV or adhere to maximum of 60g CO2/km per vehicle.
All domestic and commercial fleet to have transitioned to EV and will emit 0g CO2/km
All remaining core sites to have renewable generation, fabric, and energy efficiency upgrades completed.
SMS to focus on reducing Scope 3 carbon emissions across the value chain.
Our progress so far
- All company cars replaced with hybrid or EV models
- In preparation for next phase, 11 EV vans procured as trial vehicles to test the viability, distance capabilities and general suitability to our business purposes.
- Commenced sustainability upgrades on our first office, based in Cardiff.
- Extensive surveying activity underway across a range of energy efficiency and renewable solutions, including window replacement, air source heat pump, solar Photo Voltaic (PV), and battery storage.
- Package of on-site solutions will aggressively reduce emissions, delivering more than 60% reduction in emissions and transitioning away from gas use.
- 2022 saw the first of our grid-scale battery storage sites energised, providing vital support for the decarbonisation of the UK’s power grid.
- As our grid-scale battery operations continue to grow, we are reviewing our approach to reducing battery-related emissions in relation to our 2030 net zero target. However, current impact on our emissions is minimal.
reduction in total direct business
emissions (scope 1 & 2)*
*compared to 2019
reduction in emissions to be achieved at our Cardiff site once building upgrades completed
Eleven new EV vans are currently being trialled to assess viability
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
Becoming a signatory of The Climate Pledge additionally includes SMS as a member of the United Nations’ Race to Zero, a global campaign to rally leadership from businesses, countries, cities, regions, and investors to support a zero-carbon recovery.
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 cancel out more carbon emissions through our services (known as our ‘carbon handprint’) than we produce through our internal operations (our ‘carbon footprint’).
In 2021, we mitigated more than 126,000 tonnes of carbon emissions (TCO2e) through the installation of smart meters for energy suppliers, as well as the net-zero strategy 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) in 2021 through the ‘Green Economy Mark’, which is awarded to LSE-listed organisations that generate more than 50% of annual revenues through green services.
126,000 tonnes of carbon emissions (TCO2e) saved in 2021 through delivery of our services
Our carbon handprint was more than 55 times larger than our carbon footprint in 2021
Our net-positive effect on the environment in 2021 was equivalent to powering 220,705 British homes with clean electricity for the entire year.
Net Zero Business Guide
We’re not just committed to reducing our own emissions, but helping our customers towards their low-carbon objectives too. Read our guide on how to achieve net zero carbon emissions within your organisation.
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).
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.”
CEO of SMS
Energy Matters: Becoming a net zero carbon business
The Energy Matters podcast sits down with SMS’s Head of Sustainability, Charlotte Gregory, to talk about what exactly 'net zero' means, and the strategies being deployed by socially responsible organisations who hope to achieve the target within the next decade.SUSTAINABILITY
A sustainable and low-carbon environment for all
Inspired by our core value of Sustainability, we are committed to improving our impacts on the environment, our communities, and wider society around us through responsible operations and best-practice corporate governance.ESG RATINGS
Assessing and addressing our ESG risks and opportunities
As an organisation at the leading edge of the low-carbon transition, and a Taskforce for Climate related Disclosure (TCFD) Supporter, we’re committed to providing full transparency and sharing of relevant information regarding our Environmental, Social and Governance (ESG) progress.
The Energy Matters podcast sits down with SMS’s Head of Sustainability, Charlotte Gregory, to talk about what exactly 'net zero' means, and the strategies being deployed by socially responsible organisations who hope to achieve the target within the next decade.Discover more
Inspired by our core value of Sustainability, we are committed to improving our impacts on the environment, our communities, and wider society around us through responsible operations and best-practice corporate governance.Discover more
As an organisation at the leading edge of the low-carbon transition, and a Taskforce for Climate related Disclosure (TCFD) Supporter, we’re committed to providing full transparency and sharing of relevant information regarding our Environmental, Social and Governance (ESG) progress.Discover more