Carbon reduction plan

Commitment to achieving net zero

Vanguard Healthcare Solutions Ltd is committed to achieving Net Zero emissions (when all Green House Gases (GHG) produced by the business will be equal to or less than the emissions removed from the environment) at the latest by 2045 but an earlier date of Net Zero by 2040 has been set as a stretch target.

Reducing our GHG emissions brings significant benefits for us, our customers, suppliers and the wider community. Achieving Net Zero is also a legal requirement in the UK by 2050 according to the provisions of the Climate Change Act 2008.

Baseline Emissions Footprint

Baseline emissions are the reference point against which current or future emissions are measured. A baseline helps us evaluate our carbon performance and the effectiveness of reduction initiatives by allowing a comparison between a starting position and the actual situation after interventions.

In its measurement of energy and calculations of GHG emissions, Vanguard has adopted the principles of the ‘GHG Protocol Corporate Standard’ (see references at end), including the operational control method. The company started collating a quantified carbon footprint for the year 2021 and were assisted by an independent specialist Carbon Manager, Bath, UK. For the first baseline year, Vanguard screened in 7 of the 15 categories of Scope 3 GHG emissions. The intention was to increase the scope and accuracy of data collection and emissions calculations in subsequent years.

Baseline Year: 2021 (Jan to Dec)
SCOPE TYPE	TOTAL EMISSIONS (metric tonnes (t) of CO2e¹)
Scope 1 (direct)	17
Scope 2 (indirect)	97
Scope 3 (indirect) Included categories: Categ. 1: Purchased Goods & Services Categ. 3: Fuel & Energy Related Activities Categ. 5: Waste Generated in Operations Categ. 6: Business Travel Categ. 7: Employee Commuting Categ. 9: Downstream Transportation & Distribution	659 82 8 65 205 148 151
Total emissions	773

¹Carbon dioxide equivalent: in-line with best practice, Vanguard calculates CO2e, a unit of measurement to compare the impact of different GHGs (e.g. methane, nitrous oxide)¹

Current Emissions Reporting

Reporting year: 2024 (Jan to Dec)
Emissions	Total (tCO₂e)
Scope 1	77
Scope 2	182
Scope 3 Included Categories: Categ. 1: Purchased Goods & Services Categ. 3: Fuel & Energy Related Activities Categ. 5: Waste Generated in Operations Categ. 6: Business Travel Categ. 7: Employee Commuting Categ. 9: Downstream Transportation & Distribution	9,280 8,579 59 56 311 123 153
Total emissions	9,539

²Categ. 2: Capital Goods; Categ 4: Upstream Transport and Distribution and Categ 8: Upstream Leased Assets are captured as part of spend data and integrated into Categ 1: Purchased Goods & Services.

Emissions Totals

Total emissions have increased since base year due to growth in business activities and improved accuracy of calculations:

	2021	2023
Revenue	£55.4m	£65.0m
Number of business premises	3	5
No of employees	102	177
No of mobile/modular facilities	63	80

Absolute GHG emissions' totals
Scope 1	17	77
Scope 2	97	182
Scope 3	659	9,280
Total Scopes 1, 2 & 3	773	9,539

Carbon intensity
Scopes 1 & 2 tCO2e per £1m revenue	2.06	3.98
Scopes 1, 2 & 3 tCO2e per £1m	13.95	146.75
Scopes 1 & 2 tCO2e per employee	1.12	1.46
Scopes 1, 2 & 3 tCO2e per employee	7.58	53.89
Notes: Scope 3 emissions have materially increased since 2021 as our approach and data capture techniques improved since the base year.	Limited Scope 3 categories	Significantly improved coverage of Scope 3 categories

Emissions reduction targets

To help us to realise our commitment to achieving Net Zero emissions by 2045, we have adopted the following carbon reduction targets:

By 2026: Interim target 100% of Scopes 1 & 2 to Net Zero
By 2030: Interim target 100% of emissions under the control of the business to Net Zero
By 2035: Interim target 35% of emissions the business has influence on to Net Zero
By 2040: Interim target 60% of emissions the business has influence on to Net Zero
By 2045: Target 100% of emissions the business has influence on Net Zero

Carbon reductions in relation to activities in each of the three scopes will continue to be discussed, investigated and progressed by Vanguard.

Recent historic emissions have increased due to the expansion of business activities, including an increase in number of business premises and number of employees. These changes have not altered our short-term and long-term emissions reduction targets.

Carbon Reduction Projects

The following environmental management measures and projects have been completed or implemented since the 2021 baseline:

ISO 14001 certification
In October 2022, we ceased procuring pure petrol / diesel company cars (83% of company vehicles are now electric or hybrid)
We are incentivising employees to elect for pure EV company cars, using the salary sacrifice scheme.
We have switched to green energy providers for 100% business premises.
Separating recyclable waste from landfill is mandatory at all sites.
We continue to support hybrid working and encourage the continued use of virtual meeting platforms.
Employees are encouraged to share transport wherever possible, and we offer Cycle to Work benefits.
Continued investment in carbon capture projects around the world through a chosen partner, currently Klimate.

Our carbon reduction goals are approved and supported by the senior management team and the board of directors. In developing our strategy, we aim to deliver gradual but continuous improvements in our performance each year by implementing complementary measures such as:

Minimise waste and aim to achieve no waste to landfill by 2026.
Conduct a full supply chain audit of all materials and services used in the making, maintenance and delivery of our mobile and modular buildings and begin selecting suppliers based upon their ESG performance and plans.
Switch to lower-carbon materials or technologies.
Offer carbon neutral buildings by 2027 and carbon net zero buildings by 2028.
Carry out an operational efficiency audit on mobile and modular buildings
Track data and report progress on the outcomes of our efforts across our corporate operations on a regular basis.
Promote learning and behaviour change to inform and motivate employees to reduce their own energy footprints.

Carbon Capture Projects

In order to be proactive, and to add momentum in the journey towards Net Zero, Vanguard is augmenting its efforts with investments in carbon removal projects.

We have partnered with Klimate.co who provide access to high-quality, innovative and verifiable carbon removal solutions aligned with science and are investing in a mixed portfolio of engineered and nature-based carbon removal schemes to remove GHG emissions from the atmosphere.

he table below outlines the Scope 1 and 2 emissions since base year (2021), carbon removals procures and the overall net balance as at 31^st December 2024:

Year	Scope 1 & 2 Emissions (t CO₂e)	Carbon Removals (t CO₂e)
2021 (Base)	114 t	-
2022	195 t	-
2023	191 t	450 t
2024	259 t	500 t
TOTAL	-759 t	950 t
	Net Balance	+191 t

Declaration and Sign Off

This Carbon Reduction Plan has been completed in accordance with Procurement Policy Note (PPN) 06/21 and associated guidance and reporting standard for Carbon Reduction Plans.

GHG emissions have been reported and recorded in accordance with the published reporting standard for Carbon Reduction Plans and the GHG Reporting Protocol corporate standard[1] and uses the appropriate Government emission conversion factors for greenhouse gas company reporting [2].

Scope 1 and Scope 2 emissions have been reported in accordance with SECR requirements, and the required subset of Scope 3 emissions have been reported in accordance with the published reporting standard for Carbon Reduction Plans and the Corporate Value Chain (Scope 3) Standard[3].

This Carbon Reduction Plan has been reviewed and signed off by the board of directors (or equivalent management body).