International Distribution Services : RMG ESG Data Pack 2023-24

Royal Mail Group Ltd

ESG DATA PACK 2023-24

This document covers Royal Mail Group Ltd's 2023-34 ESG performance in a range of key non-financial metrics1. Data covers Royal Mail Group Ltd and all operating subsidiaries, unless otherwise stated. The reporting year runs from 1 April 2023 to 31 March 2024.

Select 2023-24 data points included in this pack have been assured by Bureau Veritas (limited assurance). These are indicated by . Full definitions of the reporting boundaries and key performance indicators included within Bureau Veritas' assurance are available in our Reporting Criteria, which can be accessed on our IDS website at: https://www.internationaldistributionservices.com/en/sustainability/reporting-and-performance

Our ESG reporting boundary uses the financial control approach and covers all non-dormant operating subsidiaries, and joint ventures of Royal Mail Group Ltd. Associated Companies/Investments are not within our reporting boundary. Our ESG metrics operate to a materiality threshold of 5%.

We restate prior year data and base year data in the subsequent reporting year where a single or combined variance of 5% is observed. Reported data for years in between prior year and base year may be restated at the discretion of management. The reasons for restatement are:

• Actual data has been received which replaces previously modelled and estimated data;
• Actual data previously supplied has been re-submitted with changes from latency or collection error; or
• Errors in methodology or in calculation are subsequently discovered.

1 The data presented represents Royal Mail Group Ltd and all operating subsidiaries including brands such as Parcelforce Worldwide and Royal Mail Property & Facilities Solutions.

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Classified: RMG - Public

Royal Mail ESG Data Pack 2023-24

STEPS TO ZERO (ENVIRONMENT)

CO2e emissions ('000 tonnes)2

	2023 - 24	2022 - 23 3	2021 - 22	2020 - 21	2019 - 20
Scope 1	394.6	417.4	483.7	473.2	435.3
Scope 2 (location-based)	59.1	55.4	58.6	64.1	70.5
Scope 34	775.8	778.5	901.6	787.8	81.4
Total5	1,229.5	1,251.4	1,443.9	1,325.1	587.2
Outside of Scopes6	45.1	20.2	24.2	17.2	-
Scope 2 (market-based)	0.3	0.8	1.3	9.1	8.3
Tonnes CO2e per £1M revenue (location-based)	57.9	63.8	63.7	62.1	65.5
Tonnes CO2e per £1M revenue (market-based)	50.4	56.4	57.0	55.8	57.5

1. We report our carbon emissions in line with the Greenhouse Gas (GHG) Protocol Corporate Standard, which classifies a company's GHG emissions into three Scopes. Scope 1 emissions are direct emissions from sources that are owned or controlled, including combustion of fuel and operation of facilities. Scope 2 emissions are indirect emissions from the purchase of electricity, heat, steam, and cooling for own use. Scope 3 emissions are
   all other indirect emissions (not included in Scope 2) that occur in the value chain of the reporting company, including both upstream and downstream emissions. We use the latest conversion factors from the UK Government (source: https://www.gov.uk/government/collections/government-conversion-factors-for-company-reporting)and publish reporting guidelines which detail our calculation methodologies here: https://www.internationaldistributionservices.com/en/sustainability/reporting-and-performance
2. 2022-23data (all rows) have been restated following the provision of data that was previously estimated. This restatement is in accordance with our reporting guidelines and the GHG Protocol.
3. Royal Mail has increased its Scope 3 emissions reporting to cover 100% of GHG emissions across all value chain categories, which applies to base year 2020-21 onwards. Scope 3 data for 2019-20 has not been restated. Scope 3 emissions have also been restated to correct a data calculation error for Scope 3 categories 1 and 2 from base year 2020-21 onwards.
4. Totals may display small discrepancies due to the use of rounded values.
5. Outside of Scopes emissions are reported in line with the GHG Protocol Corporate Standard to account for the biogenic emissions associated with the combustion of biogas and biofuel, which sit outside of Scopes 1 to 3. Out of Scopes data for 2019-20 has not been restated.

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Royal Mail ESG Data Pack 2023-24

Carbon emissions per parcel and letter

			2023-24	2022-233	2021-22	2020-21
	Carbon emissions per parcel (Royal Mail) (grams CO2e per parcel)		200	221	215	192
	Carbon emissions per parcel (Royal Mail and Parcelforce Worldwide)		215	237	231	207
	(grams CO2e per parcel)
	Carbon emissions per letter (Royal Mail) (grams CO2e per letter)		29	27	26	26

Environmental targets

		Target		2023-24		% change on		2020-21
				base year
Scope 1 and 2 (market-based) CO2e emissions ('000 tonnes)	-50% (2030)7	394.9	-18%	482.3
Scope 3 CO2e emissions ('000 tonnes)	-25%	(2030)7	775.8	-2%	787.8
Scope 1-3(market-based) CO2e emissions ('000 tonnes)	-90%	(2040)7	1,170.7	-8%	1,270.1
Total water consumption (m3)	-25%	(2030)	1,426,431	1%	1,417,816
Total waste generated ('000 tonnes)	-25%	(2030)	29.5	-27%	40.2

			Target	2023-24	2022-23
	Renewable electricity purchased or generated from 2022 (%)		100%	(annually to	100%	99%
		2030)
	Zero-emission final mile (%)		100%	(2035)	23%	21%
	Zero-emission company cars (%)		100%	(2030)	64%	50%

7 Targets validated by the Science Based Targets initiative (SBTi).

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Royal Mail ESG Data Pack 2023-24

Energy consumption (SECR only) ('000 kWh)

			2023-24	2022-23	2021-22	2020-21	2019-20
	Direct and indirect energy consumption		2,153,157	2,104,861	2,434,395	2,352,822	2,161,486
	(SECR categories only)
	Energy consumption per £1M revenue		275	284	286	272	280

Total energy consumption by primary source ('000 kWh)

						2023-24	2022-23	2021-22	2020-21	2019-20
				Natural gas		329,533	335,316	384,277	411,868	404,159
				Liquefied petroleum gas		618	1,397	2,449	2,526	2,171
				Kerosene		95	104	373	405	196
	energy			Gas oil		9,591	12,518	12,335	11,177	6,092
			Bio-CNG (Biogas)		16,856	19,598	4,204	321	94
	Direct			CNG		0	0	1,479	130	41
			Diesel		1,343,497	1,380,509	1,673,981	1,602,251	1,457,235
				HVO (Biodiesel)		93,639	0	0	0	0
				Motor gasoline		41,395	38,334	44,297	42,641	44,802
				Total direct energy		1,835,222	1,787,776	2,123,394	2,071,319	1,914,792
	energy			Core electricity		272,104	256,281	265,929	266,075	260,819
			Rail electricity		12,842	15,265	16,741	15,340	15,461
			Aviation fuel		215,959	225,905	230,269	224,588	220,713
	Indirect			Diesel		47,696	33,061	40,801	49,175	43,176
				Photo-voltaic generation		83	72	82	88	82
				Total indirect energy		548,684	530,583	553,822	555,266	540,252
				TOTAL8		2,383,906	2,318,359	2,318,359	2,626,585	2,455,043

8 The total energy consumption in this table includes energy sources in our value chain, such as aviation fuel and supply chain diesel use, compliant to the GRI reporting of energy. The energy consumption listed in the prior table relates to all of Royal Mail's direct energy consumption and that relating to indirect electricity use only aligned to the streamlined energy and carbon reporting (SECR) guidelines.

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Royal Mail ESG Data Pack 2023-24

Water (m3)

	2023-24	2022-233	2021-22	2020-21	2019-20
Water consumed	1,426,431	1,372,659	1,323,499	1,417,816	1,419,440

Waste ('000 tonnes)

Total volume	2023-24	2022-23	2021-22	2020-21	2019-20
Total waste generated	29.5	35.7	39.8	40.2	38.7
- of which sent to landfill	0.7	0.4	1.0	1.1	1.0
- of which diverted from landfill9	28.8	35.3	38.8	39.1	37.7

Sub-category waste volumes	2023-24	2022-23	2021-22	2020-21	2019-20
- of which recycled	21.4	26.9	31.0	29.7	29.3
- of which classified hazardous10	1.6	1.3	1.1	-	-

Air emission sources (tonnes)11

		2023-24		2023-24		2023-24		2023-24		2022-23		2021-22		2020-21		2019-20
		Road		Air-mail		Buildings
Carbon monoxide	135.5	71.9	46.5	254.0	268.3	379.1	372.2	389.5
Nitrogen oxides	1,007.4	273.1	121.3	1,401.8	1,618.4	2,131.8	1,945.4	1,901.9
PM10	9.5	3.4	2.5	15.4	16.3	24.0	23.1	24.9
PM2.5	9.5	3.4	2.3	15.3	16.2	23.9	23.0	24.8
Sulphur dioxide	1.6	7.7	2.1	11.3	31.6	32.9	30.2	29.6

1. The waste diverted from landfill includes all waste disposal routes other than landfill, including energy from waste and waste recycled and re-used.
2. Hazardous waste is a sub-category of 'total waste generated' which cuts across all disposal options. This data is added for users wishing to understand to amount of hazardous waste RM are producing.
3. Air emissions have been calculated based on the UK National Atmospheric Emissions Inventory emission factors. Reported emissions exclude business travel and mail delivered via private drivers. These exclusions are considered immaterial to those of our owned and third-party transport and building emissions. PM10 and PM2.5 are measures of particulate matter, comprising total weight of particles up to <10 micrometres and <2.5 micrometres respectively. Royal Mail data within this calculation is reviewed and, if required, updated annually.

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Royal Mail ESG Data Pack 2023-24

Fleet vehicle category breakdown (number)12

	2023-24	2022-23	2021-22	2020-21	2019-20
Electric van	4,996	4,725	1,588	416	294
Micro-Electric /E-Trike / Cargo bike	13	13	12	144	5
Alternative fuel13	497	80	31	2	2
Total low or zero-emission vehicles	5,506	4,818	1,631	562	301
Euro 6	16,718	17,181	17,394	16,787	13,375
Euro 5	19,382	21,479	22,330	22,731	22,937
Euro 4 and below	4,290	6,298	7,879	8,590	9,266
Total fleet vehicles	45,896	49,776	49,234	48,670	45,879

Royal Mail vehicle miles driven ('000 miles)

	2023-24	2022-23	2021-22	2020-21
Royal Mail vehicle miles driven	612,490	563,455	656,693	612,445

Environmental compliance

In January 2024, the Environment Agency (EA) accepted a voluntary Enforcement Undertaking offer submitted on behalf of Royal Mail Group Limited. This related to environmental harm caused by the leakage of diesel from an on-site tank in April 2020, which found a pathway to a local marina. Clean-up works were undertaken without delay by a specialist contractor engaged by Royal Mail. We accepted responsibility for the incident and co-operated with the EA constructively throughout its involvement and investigation. As part of the agreement, we made a donation of £150,000 to the Nene Rivers Trust CIO, a charity that works to conserve, protect, restore and improve the rivers of the Nene Catchment, their tributaries, their sources and the surrounding area.

1. Excludes hire vehicles and non-powered vehicles such as trailers and shunters. Reflects total no. of vehicles operating in Royal Mail and Parcelforce Worldwide only, excludes Royal Mail Group Ltd operating subsidiaries. Electric vans and alternative fuel vehicles are excluded from relevant EURO categories to avoid double-counting.
2. Alternative fuel includes bio-CNG or HVO fuelled vehicles. HVO fuelled vehicle is defined as a vehicle for which refuel volumes were at least 90% HVO as at year end data cut off (Feb 2024).

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Royal Mail ESG Data Pack 2023-24

PEOPLE AT THE HEART (SOCIAL)

Health and safety

			2023-24	2022-23	2021-22	2020-21
	Percentage change (YOY) in road traffic		+21.44	-2.7	-2.7	-5.7
	collisions (%)14
	Lost Time Accident Frequency Rate		0.78	0.79	0.54	0.39
	(per 100,000 hours worked) (number)
	Total Accident Frequency Rate (number)		2.93	2.76	-	-
	Total accidents (number)		6,123	5,768	5,033	5,523
	Days lost due to accident (number)		39,160	37,581	27,539	24,018
	Fatalities (number)15		6	6	3	7
	Sickness absence (%)		6.75	7.50	7.98	8.50

Employee engagement and investment

			2023-24	2022-23	2021-22	2020-21
	Engagement score16		47	47	63	67
	Trust score16		59	59	68	62
	Investment in learning and development		5.3	8.4	6.0	6.8
	(£ million)
	Average hours spent on learning and
	development per full time employee		30	25	28	21
	(hours)

1. Road traffic collisions per 1,000 vehicles. Note: in previous years' reporting, this metric was presented as a reduction only and has been amended to show year-on-year percentage change (increase or decrease).
2. Comprises the total number of fatalities in the UK of Royal Mail employees and third parties.
3. Our annual employee survey calculates an engagement score and a Trust Index score from responses received. These scores are out of

1. The 2022-23 survey was delayed and went live in September 2023; therefore, the same Trust score is reported for both 2022-23 and
   2023-24 reporting years.

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Royal Mail ESG Data Pack 2023-24

Royal Mail employee data17

Employees by contract	Headcount	Total %
Permanent	127,952	98.6
Contract	1,849	1.4
Employees by type	Headcount	Total %
Full time	83,262	64.1
Part time	46,539	35.9
Additional breakdown	Headcount	Total %
Employees with a disability18	7,952	6.1
Employees that identify as LGBTQI+18	4,101	3.2

Employee recruitment and retention

Overall total	Headcount	Total %
Joiners	20,759	16.0
Leavers	21,233	16.4
Employee turnover	-	14.1
Voluntary turnover	-	10.1
Positions filled by internal candidates19	1,686	7.2

Joiners by age	Headcount	Total %
<30	6,795	33
30-49	9,364	45
50+	4,600	22
Leavers by age	Headcount	Total %
<30	3,486	16
30-49	8,244	39
50+	9,503	45
Joiners by gender	Headcount	Total %
Female	3,604	17
Male	17,155	83
Leavers by gender	Headcount	Total %
Female	4,538	21
Male	16,695	79

1. The total number of employees for Royal Mail is 129,801. Pension trustees who are not employees are excluded.
2. Data collected through our 2023-24 annual employee survey, where employees were invited to voluntarily declare their disability and LGBTQI+ status.
3. Based on total hires throughout the year: 23,453. This number includes those that have joined and left in the year.

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Royal Mail ESG Data Pack 2023-24

	Joiners by ethnicity			Headcount		Total %
	Asian		1,826	9
	Black		866	4
	Chinese		180	1
	Mixed		512	2
	Other		3,251	16
	White		14,124	68
	Leavers by ethnicity			Headcount		Total %
	Asian		1,547	7
	Black		707	3
	Chinese		47	<1
	Mixed		342	2
	Other		2,678	13
	White		15,912	75
	Joiners by management level			Headcount		Total %
	IDS plc Board		2	<1
	Senior management		37	<1
	Management		353	2
	Administrative		191	1
	Operational		20,176	97
	Leavers by management level			Headcount		Total %
	IDS plc Board		0	0
	Senior management		27	<1
	Management		436	2
	Administrative		229	1
	Operational		20,541	97
	Total employee turnover by gender			Headcount		Total %
	Female			-	15.1
	Male			-	13.8
	Voluntary turnover by gender			Headcount		Total %
	Female			-	21.1
	Male			-	78.9
	Positions filled by internal			Headcount		Total %
	candidates by gender
	Female		1,241	5.29
	Male		445	1.9
	Positions filled by internal			Headcount		Total %
	candidates by ethnicity
	Asian		167	0.71
	Black		66	0.28
	Chinese		2	0.01
	Mixed		30	0.13
	Other		19	0.08
	White		1,402	5.98
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Royal Mail ESG Data Pack 2023-24

Joiners: this is the known number of joiners during the year at 31 March 2024.

Leavers: this is the known number of leavers during the year at 31 March 2024.

N.B. It is not possible to calculate the headcount reduction from 2022-23 to 2023-24 by subtracting joiners from leavers. Nor is it possible to calculate this year's closing headcount by adding joiners to and subtracting leavers from last year's closing headcount. This is due to timing differences in reporting.

Gender diversity (headcount)20

	Royal Mail female	Royal Mail male
	2023-24	2022-23	2023-24	2022-23
IDS plc Board21	4	3	6	6
Senior management22	52	45	147	129
Management	2,043	1,967	5,782	5,778
Administrative	1,512	1,545	967	992
Operational	21,920	22,896	97,368	96,812

Gender diversity by group (%)20

	Royal Mail female	Royal Mail male
	2023-24	2022-23	2023-24	2022-23
IDS plc Board21	40	33	60	67
Senior management22	26	26	74	74
Management	26	25	74	75
Administrative	61	61	39	39
Operational	18	19	82	81

Ethnicity distribution (headcount)20,23

	Asian	Black	Chinese	Mixed	Other	White
IDS plc Board21	1	0	0	0	0	9
Senior management22	9	2	1	2	33	151
Management	594	201	17	94	1,008	5,901
Administrative	169	75	14	18	164	2,037
Operational	9,101	4,487	390	1,369	15,765	87,939

1. The total number of employees for Royal Mail is 129,801. Pension trustees who are not employees are excluded.
2. Total includes IDS plc Board members and the Chairman.
3. For our ESG reporting, we define senior managers as persons graded in bands 1-6, being employees responsible for planning, directing or controlling the activities of the Company, or a strategically significant part of it. It does not include those members of the IDS plc Board who would otherwise classify as employees within bands 1-6. This also includes the Company Secretary.
4. In total, 250 employees do not have an assigned ethnicity in our reporting so are not included in this table.

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Royal Mail ESG Data Pack 2023-24