Overview

We are pleased to report our second year (2022) of scope 1, 2 and 3 greenhouse gas emissions across the Zenergi Group for both location- and market-based emissions.

As expected, an increase in gross emissions is observed in 2022 compared to 2021, reflective of an increase in business activities as the COVID-19 restrictions lifted. The increase is measured as 21% and 25% for gross location-based and market-based emissions respectively with business travel (up 119 tCO2e, 135%) and employee commuting (up 99 tCO2e, 106%) having the largest relative increase. Despite this increase in activity, homeworking remains at levels much higher than pre-pandemic.

When comparing the change in emissions intensity on a per employee basis, this has also increased; however, at a lower percentage than gross emissions. The emissions per employee increase is calculated as 5% and 8% for location-based and market-based emissions respectively. The smaller increase in this intensity ratio compared to gross emissions is due to an increase in employee numbers between the reporting periods.

The largest contributions to reductions in emissions is scope 3 purchased goods and services and capital goods, resulting in a decrease of 75 tCO₂e (35%) and 43 tCO₂e (46%) respectively.

Table 1: Intensity ratios

Electricity energy consumption (kWh) increased 5% in 2022; however, when converted to carbon emissions, this translates to a 3% decrease in scope 2 location-based emissions. This is because the emissions factor (kgCO₂e/kWh) used to calculate location-based emissions (the UK grid average conversion factor) is lower in 2022 than the prior year due to the UK generation fuel mix comprising more renewable energy.

Scope 2 market-based emissions are influenced by contractual emission factors that can be more variable, meaning these emissions have increased 65%. This is predominantly due to the Brierley Hill office, which has increased electricity usage as well as a high-carbon contract controlled by the landlord.

Table 3: Breakdown of emissions by scope

Location & market-based emissions (tCO₂e)

Table 4: Scope 3

Company information

Zenergi Group Ltd is a company incorporated in England and Wales (company number 08329123) whose registered office is at 3 Benham Road, Benham Campus, Southampton Science Park, Chilworth, Southampton, Hampshire, SO16 7QJ. The ultimate controlling party is ECI 11 LP.

The ultimate controlling party is ECI 11 LP.

Organisational boundary

An operational control approach is applied to define the GHG emissions across the Zenergi Group. This includes 100% of the subsidiaries Zenergi Ltd, Briar Consulting Engineers Ltd, S B Energy UK Ltd, Power Direct Ltd, Apollo Energy Ltd, Energy Management Ltd and Powerful Allies Ltd.

Reporting period & base year

The current reporting period is 1^st January to 31^st December 2022, which is aligned to the Group financial year. This is compared against a fixed base year, which is selected as 1^st January to 31^st December 2021.

The 2021 base year is selected as this is the earliest year that a complete scope 1, 2 and 3 GHG inventory is available. The base year has been adjusted to include full annual emissions of the acquisitions DB Group (Europe) Limited (joined February 2022) and Powerful Allies (joined June 2022) in accordance with our base year recalculation policy.

The base year policy states that the base year emissions will be retroactively recalculated in the event of significant changes to the company, such as structural changes, changes in methodology or improvements in the accuracy of data. Our base year recalculation policy defines the significant threshold as 5% of base year emissions.

Quantification and reporting methodology

The UK Government Environmental Reporting Guidelines and the GHG Protocol Corporate Accounting and Reporting Standard (revised edition) and the GHG Protocol Corporate Value Chain (Scope 3) Accounting and Reporting Standard has been followed, with reference to the GHG Protocol Scope 3 Technical Guidance. The 2022 UK Government GHG Conversion Factors for Company Reporting were used in emission calculations as these relate to the reporting period.

Electricity and gas energy consumption is calculated from invoices or meter readings, with transport data based on mileage records. Water usage is taken from invoice records and benchmark estimated where necessary based on typical usage per employee. Waste records are unavailable and have been estimated based on typical waste per employee. Waste disposal methods are taken from regional average data published by the UK Government for the 2021/22 period.

The emissions are divided into the direct combustion of fuels and the operation of facilities (scope 1), indirect emissions from purchased electricity (scope 2) and further indirect emissions that occur as a consequence of company activities but occur from sources not owned or controlled by the organisation (scope 3). The scope 3 emissions are further divided into the 15 categories defined by the GHG Protocol. A description of the methodologies, allocation methods, and assumptions used to calculate scope 3 emissions is included within the supporting documentation.

Scope 2 emissions are calculated using both a location-based and market-based methodology. Location-based emissions are based on grid average emission factors for countries or regions, whereas the market-based emissions take into consideration contractual arrangements when purchasing electricity (e.g. certified renewable energy contracts).