Carbon reduction plan

Commitment to achieving net zero

Vanguard Healthcare Solutions Ltd is committed to achieving Net Zero emissions (when all greenhouse gas (GHG) emissions produced by the business will be equal to or less than the emissions removed from the environment) at the latest by 2045. An earlier date of Net Zero emissions 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 measuring energy use and calculating GHG emissions, Vanguard adopted the principles of the GHG Protocol Corporate Standard, including the operational control method. The company began collating a quantified carbon footprint for the 2021 baseline year with support from an independent specialist, Carbon Manager, Bath, UK. This 2021 baseline assessment was an initial carbon footprint exercise rather than a full organisational audit; Vanguard screened and reported against the data available at the time, including 7 of the 15 Scope 3 categories, with the intention of broadening the scope and improving the accuracy of data collection and emissions calculations in subsequent reporting years.

Current Emissions Reporting

Emissions Totals

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

For comparability with the baseline, the headline totals and intensity metrics use location-based Scope 2 emissions unless stated otherwise. Note: the 2021 baseline and 2025 reporting year are not directly comparable on a like-for-like basis as Scope 3 category coverage has expanded from 7 to 12 categories. The apparent increase in absolute emissions and intensity metrics since 2021 substantially reflects this expanded scope rather than operational deterioration alone.

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 2027: 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 to Net Zero

Emissions “under the control of the business” comprise Scope 1 and Scope 2 emissions together with those Scope 3 emissions arising directly from Vanguard’s own operational decisions and activities. Emissions that the business can only influence relate primarily to wider value-chain activities within Scope 3, including purchased goods and services, capital goods, transport and distribution, and other supplier-related emissions. While Vanguard does not have direct operational control over these activities, we recognise our responsibility to work collaboratively with suppliers, customers and other stakeholders to reduce associated emissions. Interim and long-term targets are measured against the 2021 baseline year and are intended to be achieved by the end of the stated target year.

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

The reduction in 2025 Scope 1 and 2 (location-based) emissions compared with the previous year was driven principally by a reduced operational footprint, improved use of actual supplier data in specific areas, and updated emissions factors.

Carbon Reduction Projects

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

• ISO 14001 certification (including energy aspects).
• In October 2022, we ceased procuring pure petrol / diesel company cars (100% of company cars are now electric or hybrid).
• In March 2025, we launched a salary sacrifice electric vehicle scheme with Tusker (the scheme has delivered approximately 24.5 tonnes of CO2 savings in its first year, compared to petrol equivalents. 2030 Target
• We have switched to 100% renewable electricity supply in Manningtree, Hull and Australia. Gloucester is currently partially renewable, with transition to a fully renewable contract planned at renewal.
• 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.

Our carbon reduction goals are approved and supported by the senior management team and the board of directors.

Day-to-day accountability for carbon reduction delivery is assigned to MD Mobile, who/that provides a formal progress update to the board no less than annually. Carbon reduction performance forms part of the annual management review under ISO 14001.

In developing our strategy, we aim to deliver gradual but continuous improvements in our performance each year by implementing complementary measures such as:

• Transition Gloucester electricity supply to 100% renewable by contract renewal (target: H2 2027). Procure a certified renewable electricity contract (REGO-backed or equivalent) and update the market-based Scope 2 calculation accordingly.
• Minimise waste and aim to achieve no waste to landfill by end of 2026.
• Engage with key suppliers to collect high-quality primary data and move away from cost-based calculations to supplier-specific data:
  • (i) Identify the top 10 suppliers by estimated Scope 3 Category 1 and 2 emissions contribution
  • (ii) Issue supplier data-request letters to all top-10 suppliers by Q3 2026
  • (iii) Set a target to obtain primary emissions data from at least 5 of the top 10 suppliers by year-end 2026
  • (iv) Require energy/carbon data in new and renewed contracts
  • (v) Establish annual Category 1 reduction KPIs, expressed in absolute tCO₂e, from the 2026 reporting year onwards. Can lead to developing smarter targets.
• Integrate sustainability considerations into supplier discussions and consider ESG performance and plans when selecting new suppliers.
• Switch to lower-carbon materials or technologies.
• Develop methodologies and design options to support lower-carbon, carbon-neutral and net-zero building offerings, where technically and commercially feasible.
• Carry out an operational efficiency audit on mobile and modular buildings (target completion: Q4 2029); publish findings and implement priority efficiency measures in the subsequent reporting year.
• Track data and report progress on the outcomes of our efforts across our corporate operations on a regular basis.
• Energy consumption associated with Vanguard's mobile and modular units in operation is likely to represent a material Scope 3 Category 13 (Downstream Leased Assets) source. At present, however, energy consumption data for these units is not available to Vanguard, as utility procurement, metering arrangements and energy management are typically controlled by the host healthcare provider. As a result, we do not currently have a sufficiently robust basis on which to quantify these emissions. We acknowledge Category 13 as a known reporting gap within the Carbon Reduction Plan and will undertake a technical benchmarking exercise in 2027 to assess the feasibility of estimating energy consumption and associated emissions for representative unit types. Subject to data availability and methodological confidence, this work will inform the future inclusion of Category 13 emissions within our Scope 3 inventory.
• Promote learning and behaviour change to inform and motivate employees to reduce their own energy footprints.

Carbon Capture Projects

In 2023 and 2024, Vanguard partnered with Klimate (www.klimate.co) who provide access to high-quality, innovative and verifiable engineered and nature-based carbon removal schemes to remove GHG emissions from the atmosphere.

The table below outlines the Scope 1 and 2 emissions since base year (2021), carbon removals procured and the overall net balance as at 31st December 2025:

Our strategy for carbon removals has evolved as our carbon maturity has increased.
The experience working with Klimate has informed our current approach:

• Primary focus on absolute emissions reduction across Scopes 1, 2 and key Scope 3 categories
• Carbon removals used only for residual emissions once reduction opportunities have been maximised.

Purchased carbon removal credits are disclosed separately from gross emissions reductions and are not counted per se towards Vanguard’s operational decarbonisation progress. Cred-its are only considered to contribute to a “net” position once independently verified and for-mally retired. The cumulative 950 tCO₂e of removals procured to date offsets approximately 94% of cumulative Scope 1 and 2 emissions (from 2021 to 2025). This is presented as a “net balance” rather than evidence of operational decarbonisation.

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 standard2 and uses the appropriate Government emission conversion factors for GHG company reporting3.

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) Standard4.

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

Signed on behalf of the Supplier:

Graham Rich
Chief Executive Officer
Vanguard Healthcare Solutions Ltd
June 2026

[1]https://ghgprotocol.org/corporate-standard

[2]https://www.gov.uk/government/collections/government-conversion-factors-for-company-reporting

[3]https://ghgprotocol.org/standards/scope-3-standard