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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 continued Reputation
Quantitative scenario analysis Introduction
As part of OCU’s ongoing commitment to TCFD, this year we have advanced our understanding of climate-related risks and opportunities through the use of quantitative scenario analysis. This approach aligns with TCFD guidance, which encourages organisations to progressively improve their climate-related disclosures and risk oversight integrating climate risks into existing risk management frameworks, and strategic planning to capture opportunities. Scenario analysis enables OCU to test strategic resilience and direction across a range of potential climate-related scenarios. The scenarios have allowed OCU to develop further understanding of how climate-related physical and transition risks may impact its operations, strategies, and financial performance over various time horizons. This approach supports OCU’s long-term planning, enhances risk management, and furthers OCU’s position as a leading actor in the UK’s transition to a low-carbon economy. Overview Based on OCU’s 2024 TCFD assessment, the two most material risks and opportunities, as identified by stakeholders, were taken through scenario analysis. These two most material topics were subject to more granular analyses, providing clearer insight into how they may inform strategic direction and investment requirements. • Transition market opportunity arising from increased demand for products and services that will be required to meet the UK’s decarbonisation, water security and climate resilience goals. In 2025, for the purpose of our first quantitative analysis, the market opportunity was limited to focus on the expansion of transmission and distribution (T&D) infrastructure in the UK, particularly around the cabling needed to support growing reliance on electricity, wind and solar generation, and electric vehicle (EV) charging points, all directly relevant to OCU’s current business and growth potential. • Transition technology risk due to increased expenditures required to decarbonise OCU’s fleet and plant. For the purpose of our first quantitative analysis, the technology risk was limited to focus on battery-electric light commercial vehicles (LCVs) across the three most material LCV types. The analysis explored technology adoption rates and infrastructure readiness tipping points under different scenarios.
Significance
Likelihood
Timeframe
Transition reputation risk and opportunity from perceived action in dealing with climate change
Moderate
Very likely Short term
Risk and opportunity Our management of sustainability issues has been ranked ‘very high’ in terms of likelihood and ‘short’ in terms of timeframe of impact. This points to transitional reputational opportunity, and in some areas, risk. There is an opportunity for OCU to develop a reputation among clients and stakeholders as a company that: • Has a comprehensive sustainability and climate change strategy and net zero roadmap. • Is transparent with its emissions reporting. • Incorporates sustainability and climate change considerations when responding to customer tenders. This is unlikely to directly impact revenue in the short term but is an area that OCU’s clients are expecting to be managed appropriately. To improve our reputation we have increased our CDP (formally the Carbon Disclosure Project) score from D (disclosure) to a C (awareness), providing confidence in our clients that we are strengthening our approach to climate change. This year we will be setting science-based targets and having these validated by the Science Based Targets initiative. We will also develop a net zero roadmap as part of our new sustainability strategy, providing our clients with the confidence we will be able to deliver against these targets and support them on their decarbonisation journey.
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