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Strategic report
OCU Group | Annual report and financial statements 2025
Governance
Financial statements
SECR statement for accounting period May 2024 – April 2025 Reporting and performance
Risk management Climate analysis
Market
Significance
Likelihood
Timeframe
For our last financial year, OCU Group engaged DNV, providers of ESG consultancy services across multiple industries, to carry out an initial, high-level climate risk and opportunity assessment. We identified the physical and transitional inherent risks that could impact our financial position over the short (one to three years), mid (three to five years), and long-term (five to ten years) horizon. We then evaluated these across a simple three‑tier climate scenario analysis: • Current policies – Continued high greenhouse gas emissions resulting in 3°C increase in global temperatures. • Delayed transition – Aggressive but delayed global actions to limit warming to under 2°C. • Net zero to 2050 – Aggressive and immediate global actions to limit warming to under 1.5°C. For this financial reporting year, our ESG Taskforce conducted a review of the nine climate-related risks and opportunities that were identified and the high-level responses to the unmitigated impact across the different scenarios. It was concluded that the original nine were still valid: Transitional • Technology: Significant unknowns due to upcoming changes in technology. • Market: Significant market growth potential from the energy transition. • Market: Ability to recover increased costs due to climate change. • Market: Exposure to risks associated with client specification and contract uncertainties. • Policy: Increased operating expenses as a result of climate policies or legislation. • Policy: Influence of policy through lobbying. • Reputation: Perceived action in dealing with climate change.
Significant market growth potential from the energy transition Exposure to risks associated with client specification and contract uncertainties
Medium term Medium term
Major
Very likely
Moderate
Likely
Opportunity OCU Group is facing an opportunity in providing services that are aligned with the UK’s decarbonisation, water security and climate resilience objectives, offering a potential transition market opportunity. OCU Group is poised to capitalise on the UK’s decarbonisation goals, presenting a significant market opportunity. With the UK’s binding commitment to achieve net zero by 2050, the demand for services aligned with these objectives is set to rise. This includes the increased installation, distribution and connection of renewable energy sources such as solar and wind farms, a growing need for battery energy storage systems (BESS) to ensure a steady energy flow from renewables into the grid, and the enhancement of infrastructure for electric vehicle charging. The growing need for climate resilience, through better water storage, efficient distribution and treatment, and stronger flood defences, creates further opportunities for OCU Group. By focusing on these areas and expanding our business capabilities and skill sets, we can optimise this opportunity and drive revenue growth. We have integrated this approach into the core of our business strategy, focusing on acquisitions to enhance our services in this sector. Our most notable acquisition, RJ McLeod in June 2024, has brought its civil engineering expertise into OCU Group. This addition broadens our capabilities, including the construction of foundations for onshore wind farms and coastal defences, thereby improving climate resilience. We have realigned our management structure to strengthen our offering and make sure we can provide the specialist support needed across the energy sector. We will continue to target new acquisitions based on how they can strengthen our services to support the decarbonisation markets. Risk OCU Group may be exposed to potential lower margins based on client specification requirements and exposure to uncertainties as a result of supply chain dynamics in the energy transition market. OCU Group’s contracting structure currently protects margins from transition market exposure through a combination of material and inflationary pass-through mechanisms, along with protecting against future legislative change, made to support the energy transition.
Physical • OCU’s own operations. • OCU’s own supply chain.
We have once again elected to disclose on our top four climate-related risks and opportunities associated with market, technology and reputation. All our transitional and physical risks remain important and will continue to be monitored through our governance structure. As part of OCU’s ongoing commitment to TCFD, this year we have advanced our understanding of climate-related risks and opportunities through quantitative scenario analysis. Details of this are covered on pages 80 to 82.
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