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Strategic report
OCU Group | Annual report and financial statements 2025
Governance
Financial statements
The services we provide in energy transition are crucial in addressing climate change by ensuring energy security and reducing greenhouse gas emissions from non-renewable energy generation. We recognise that all businesses must reduce greenhouse gases across their value chains to achieve net zero and fully understand and manage climate-related risks to remain sustainable. Therefore, we have assessed the impact of climate-related risks and opportunities on our operations, detailed in the Reporting and performance section of this report. Limiting global warming to 1.5°C above pre‑industrial levels is essential to avoid the most catastrophic impacts of climate change. The Intergovernmental Panel on Climate Change (IPCC) and numerous scientific studies have shown that staying within this temperature threshold is vital to prevent severe environmental, economic, and social consequences. OCU Group is committed to reducing its greenhouse gas emissions in line with the Science-Based Targets initiative (SBTi). In 2025, we will formally set our targets and submit them to the SBTi for validation, ensuring we have a comprehensive carbon transition plan to achieve net zero by 2050. Playing our part in tackling climate change Reducing our environmental footprint Environmental
Key achievements Carbon reduction
E-hotboxes: We have invested in 18 e-hotboxes which keep the asphalt warm through electricity instead of propane gas. EV charging points: We have installed additional charging points at key locations across our network, bringing the total to 45 charging points. Enhanced telematics: We have completed the rollout of a new telematics system across our fleet and are now bringing in our acquisitions, providing us with detailed fuel consumption data including idling time. Pipe pusher: Our new pipe pusher, George, is enabling us to reduce the amount of pits we need and uses less diesel in its operation compared to traditional pipe pushers, reducing our carbon emissions. Technology trials: We have carried out trials of electric plant such as mini-excavators, helping to identify how they operate practically and the optimum conditions for them to work. Measuring and assurance We have been dedicated to enhancing the measurement and reporting of our greenhouse gas (GHG) emissions across Scopes 1, 2 and 3. By implementing IT solutions, we can now accurately calculate our full carbon footprint. Aligning carbon reporting with our existing finance system, Dynamics 365, has streamlined our reporting process, enabling us to set precise targets for submission to the SBTi. Reliable data that our stakeholders can trust is crucial for ensuring we take the right steps on our carbon journey. We have successfully achieved external validation for our Scope 1, 2 and some Scope 3 emissions to ISO 14064-1 through the Carbon Reduce Standard across the OCU Group.
Our Carbon Disclosure Project (CDP) score has improved from a D (disclosure) to a C (awareness), providing further assurance that our approach to carbon management is maturing. Awareness and influence Powering Net Zero Pact (PNZP): Earlier in the year OCU Group joined the PNZP, which brings together different companies across all tiers of the power sector that are committed to a fair and just transition to net zero carbon emissions. With RJ McLeod as a founding member of the pact, this is enabling us to share best practice and work collaboratively across the power sector to drive change. Training: We have worked with DNV to deliver two sessions with the Executive Committee to raise awareness of the climate-related risks and opportunities as well as our science-based targets and what they mean for the business. Goals for the next financial year • Set science-based near-term and long-term targets for our Scope 1, 2, and 3 emissions through the SBTi. • Continue to invest in electric vehicles and plant, aiming for 10% of all new vehicles procured. • Increase our procurement of Renewable Energy Guarantees of Origin (REGO) certified renewable energy for our facilities to be 100% by 2026. • Implement energy management systems to monitor and reduce consumption.
Over the last financial year, our rapid business growth and acquisitions, particularly McLeod, have inevitably increased our absolute Scope 1 and 2 emissions, by 63%, and our carbon intensity (tCO 2 e/£m revenue), by 13%. However, we have made significant progress in reducing our emissions. When performing a like-for-like comparison excluding RJ McLeod data, we have reduced our carbon intensity by 14%, from 36.53 tCO 2 e to 30.91 tCO 2 e per £m turnover. Renewable energy: In our Scottish region hubs, all permanent energy supplies are Renewable Energy Guarantees of Origin (REGO) certified, providing a good step forward to our target of 100% of all our directly procured energy being from renewable sources. Hubs in our other regions are following this benchmark plan. Lower carbon concrete: We are committed to reducing our carbon footprint by using lower carbon concrete wherever possible. By switching from CEM1 to CEM2 and CEM3, which contain over 35% less cement, we significantly reduce the embodied carbon. For example, at RJ McLeod, 59% of our ready-mix concrete purchases are CEM2 and CEM3, and 97% of our non-ready-mix concrete is CEM2. Technology investment We have continued to invest in new technology to reduce our carbon emissions: Transition to hybrid and electric vehicles: All new company cars for employees are either fully electric or plug-in hybrid and we have invested in 18 fully electric vans.
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