2014 has been another successful year as Pace continues to evolve into a more profitable, cash-generative business with a broader spread of offerings and customers. As we continue to extend our portfolio of products and services, we are also keeping our environmental and social impacts firmly to a minimum.
STBs still constitute the largest proportion of our portfolio and I am pleased to report that we continue to make successful improvements to the environmental performance of these products. Each and every year we challenge ourselves to make gains in our products performance and I am delighted to report that the 2014 results continue to demonstrate positive improvements. For the first time, we have established an energy and GHG baseline for our Home Gateway (HG) products, which demonstrates that we are able to adapt our responsible business practices to new products that will serve our customers both now and in the future.
We continue to manage the environmental impacts of our hardware products through our Design for Environment (DfE) programme. This year, we are able to report the following improvements in our environmental performance in 2014 compared to 2013:
- The average weight of our set-top box (combined weight of metals, plastic and printed circuitry) has been reduced to 1.436 kg/STB (2014) from 1.499 kg/STB (2013) and the average weight of packaging (cardboard and polythene) used has also been reduced to 0.405kg (2014) from 0.409kg (2013).
- The average estimated annual electricity consumption of a Pace set-top box design reduced to 88.57kWh (2014) from 89.5 kWh (2013); this, in turn, resulted in a reduction in associated CO2e emissions to 47.47 kg CO2e (2014) from 47.99 kg CO2e (2013) per set-top box design when in use for a year.1
- In 2014 we can report a 3.9% reduction in total product energy consumption and corresponding CO2 emissions to 923 tCO2e (2013: 960 tCO2e).
- We have continued our ongoing and long-lasting programme of engagement with regulators and decision makers on measures that improve the energy efficiency of our products. Most notable in 2014 were our involvement with Energy Star in the US and contributions to the technical contents of voluntary agreements in Europe, Canada and MEPS in Australia.
Our carbon intensity, measured as tCO2e per USD millions of turnover (in line with our financial reporting), decreased during the period to 5.5 tCO2e per USD millions of turnover, down from 5.66 tCO2e in 2013. Our reported total carbon footprint (the sum total of all CO2e emissions for scopes 1–3), from our operations has, however, increased by 3% to 14,408 tCO2e (2013: 13,979 tCO2e) principally as a result of integrating our new acquisition (Aurora) into the scope of our reporting boundary.
- Scope 1 (oil, gas and refrigerant losses) emissions decreased by 4.2% during 2014 to 654 tCO2e. (2013: 668 tCO2e).
- Scope 2 (electricity) emissions have increased by 11.2%, a consequence of the net addition of a further 11,511m2 (22%) to our operational footprint (treated floor area), mainly via the acquisition of Aurora.
- Scope 3 (air travel, waste generation and water consumption) emissions have decreased by 4.4% to 6,337 tCO2e. (2013: 6,627 tCO2e).
Pace has continued its work with its suppliers in 2014 through the Electronic Industry Citizenship Coalition (EICC) and we also implemented a programme to ensure full-scale adoption of the EICC Code of Practice throughout our supply chain.
We have continued our engagement with EcoVadis to ensure complete evaluation transparency and to drive continuous improvement of our supply chain’s CSR performance, culminating in new supply chain objectives and targets.
Our community investment strategy has focused on education in the communities local to our operations. This year we have reported on some of the wider community projects undertaken across the Group, with particular emphasis on the work carried out in communities in the USA, the UK and India.
In 2014 we renewed our support for the Ahead Partnership and UK charity Teach First to support science, technology, engineering and maths (STEM) teachers.
We also continued our work with R.V. College of Engineering in Bangalore, facilitating practical learning and developing an elective learning module that promotes engineering practices.
We have set a series of new targets for 2015 which will deliver continued improvement in managing our environmental and social impacts. I have merely mentioned a few highlights here. I hope that you are able to read on and enjoy the 2014 edition of our Responsible Business Report. We welcome any comments that you may have, so please feel free to get in touch with me or Damien O’Sullivan, Pace’s Head of Sustainability.
Chief Executive Officer
3 March 2015
1 - The total CO2 of the use of STB products was calculated using the most recent worldwide International Energy Agency published Emission Factor (EF) for CO2 emissions per kWh from electricity generation (i.e. 0.536 kgCO2/KWh).
2- Total CO2 includes scope 1, 2 and 3.