{"id":7092,"date":"2023-12-01T13:14:33","date_gmt":"2023-12-01T13:14:33","guid":{"rendered":"http:\/\/coats.com\/?page_id=7092"},"modified":"2026-06-05T15:56:14","modified_gmt":"2026-06-05T10:26:14","slug":"sustainability-strategy","status":"publish","type":"page","link":"https:\/\/www.coats.com\/it\/sustainability\/sustainability-strategy\/","title":{"rendered":"Sustainability Strategy"},"content":{"rendered":"
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Sustainability Strategy Overview<\/h1>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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\n\t\t\t\t\t\t\t\t\tWe are now half way through our 2023 to 2026 strategy period, and through 2024 we have made further significant strides towards achievement of our 2026 targets. Through our five-pillar strategic framework, we are dedicated to integrating sustainability into our operations, continuously improving our environmental, social, and governance practices, and this is reflected in our strategy and the short-, medium-, and long-term targets we have set. \t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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\n\t\t\t\t\t\t\t\t\tWe have been working to deliver external limited assurance under ISAE 3000 assurance standard for the seven core sustainability metrics where we have externally disclosed 2026 targets, and we are proud to be able to report an unqualified report has been issued by EY for these metrics in full years 2022, 2023 and 2024.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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\n\t\t\t\t\t\t\t\t\tThrough 2024, in preparation for the upcoming Corporate Sustainability Reporting Directive (CSRD), we commenced work on our Double Materiality Assessment and have aligned our material ESG topics to the relevant European Sustainability Reporting Standards. Our conclusions to date, in conjunction with the output of our biennial materiality assessment update last conducted in 2023, demonstrate that our current strategy and targets continue to be highly relevant as a response to our key material issues, and currently no material changes are required.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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\n\t\t\t\t\t\t\t\t\tThe roadmap below describes our journey towards delivery of our Net-Zero target in 2050, our interim 2030 Science Based Targets for emissions reduction, and our short-term 2026 targets.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\"Net-Zero\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Our Strategy Framework<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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\n\t\t\t\t\t\t\t\t\tOur five-pillar strategic framework is illustrated below and remains aligned with the critical sustainability issues pertinent to achieving our commercial objectives. For each pillar, we have identified the United Nations Sustainable Development Goals that are fundamentally connected.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t
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\n\t\t\t\t\t\t\t\t\tOur processes rely on energy,\nmainly for kinetic and thermal\npurposes. Our use of energy\ncauses emissions of greenhouse\ngases that contribute to climate\nchange. Reducing emissions\nthrough more efficient use of\nenergy and using less emitting\nsources of energy is crucial to\ncombat climate change.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\"materials-strategy-framework\"\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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\n\t\t\t\t\t\t\t\t\tThe materials we use to make\nour products are largely oil based and are energy intensive in terms of upstream production.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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\n\t\t\t\t\t\t\t\t\tThey are our main overall source\nof greenhouse gas emissions.\nTransitioning to materials with\nlower inherent emissions, by moving to recycled or bio-based\nmaterials is a priority to combat\nclimate change.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\"water-strategy-framework\"\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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\n\t\t\t\t\t\t\t\t\tSome of our processes, especially dyeing, are waterintensive. Many of our plants are located in areas of water stress.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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\n\t\t\t\t\t\t\t\t\tEnsuring that we are minimising the additional water stress caused through our operations is important to other users and to the environment.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\"waste-strategy-framework\"\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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\n\t\t\t\t\t\t\t\t\tWe produce solid and liquid waste in our processes. Through all our processes we need to ensure that we recover as much material as possible from waste streams and that we are then ensuring that any residual waste product is dealt with responsibly and with the smallest impact on the environment.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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\n\t\t\t\t\t\t\t\t\tWe are committed to eliminating\nall waste to landfill where local\nregulations permit.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\"people-strategy-framework\"\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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\n\t\t\t\t\t\t\t\t\tOur employees, their families, our neighbouring communities and those in our wider value chain are all the people that are immediately touched by our business. We have a responsibility to them all and our policies, procedures and programmes are there to ensure that safety, wellbeing, fairness, equality, diversity and opportunity are part of that relationship.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\"sdg1-8-3-5\"\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t
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\n\t\t\t\t\t\t\t\t\tWithin this strategic framework, we have identified the key metrics to monitor our progress. We are currently focused on achieving our next short-term milestone set for 2026. Our 2026 targets are based on our 2022 baseline performance delivery for each metric, and we have restated the 2022 performance levels post acquisitions of the Texon and Rhenoflex footwear structural component businesses. Our aspirations beyond 2026 are supported by our Science Based Targets initiative (SBTi) approved 2030 emission reduction targets across Scopes 1, 2 and 3, as well as our SBTi approved 2050 Net-Zero target that encompasses the entire value chain.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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STRATEGY
PILLAR<\/td>\r\n		<\/td>\r\n2026 MILESTONE TARGETS<\/td>\r\n2030
ASPIRATIONS<\/td>\r\n		2030 SBTi
COMMITMENTS<\/td>\r\n		2050
TARGET<\/td>\r\n<\/tr>\r\n
METRIC<\/td>\r\n2022
BASELINE*<\/td>\r\n		END 2026
TARGETS<\/td>\r\n<\/tr>\r\n
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ENERGY<\/span><\/td>\r\n\"Energy\"<\/td>\r\n% reduction in Scopes
1&2 CO2<\/sub>e emissions<\/span><\/td>\r\n		182.0K
TONNES<\/span><\/td>\r\n		22%
REDUCTION<\/span><\/td>\r\n		70% of energy
to come from
renewables<\/span><\/td>\r\n		-46.2% in Scopes
1&2 emissions vs
2019 baseline<\/span><\/td>\r\n		Net-Zero
emissions in our
value chain<\/span><\/td>\r\n<\/tr>\r\n
MATERIALS<\/span><\/td>\r\n\"Materials\"<\/td>\r\n% preferred primary
raw materials<\/span><\/td>\r\n		31%
(restated)**<\/span><\/td>\r\n		60%<\/span><\/td>\r\n100%<\/span><\/td>\r\n-33% in Scope 3
emissions vs 2019
baseline<\/span><\/td>\r\n<\/tr>\r\n
WATER<\/span><\/td>\r\n\"Water\"<\/td>\r\n% of water recycled<\/span><\/td>\r\n24%<\/span><\/td>\r\n33% INCREASE
IN RECYCLING RATE<\/span><\/td>\r\n		<\/td>\r\n<\/td>\r\n<\/td>\r\n<\/tr>\r\n
WASTE<\/span><\/td>\r\n\"Waste\"<\/td>\r\nNo waste to landfill<\/span><\/td>\r\n2.3K
TONNES<\/span><\/td>\r\n		ZERO
TO LANDFILL<\/span><\/td>\r\n		<\/td>\r\n<\/td>\r\n<\/td>\r\n<\/tr>\r\n
% effluent compliance to the
Roadmap to Zero standards<\/span><\/td>\r\n		99.76%<\/span><\/td>\r\n100%<\/span><\/td>\r\n<\/td>\r\n<\/td>\r\n<\/td>\r\n<\/tr>\r\n\r\n
PEOPLE<\/span><\/td>\r\n\"People\"<\/td>\r\n% of workforce with \u2018Great
Place to Work\u2019 certification<\/span><\/td>\r\n		86%<\/span><\/td>\r\n88%<\/span><\/td>\r\n90%<\/span><\/td>\r\n<\/td>\r\n<\/td>\r\n<\/tr>\r\n
% of females in
senior leadership<\/span><\/td>\r\n		19%<\/span><\/td>\r\n30%<\/span><\/td>\r\n40%<\/span><\/td>\r\n<\/td>\r\n<\/td>\r\n<\/tr>\r\n<\/tbody><\/table><\/div><\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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\n\t\t\t\t\t\t\t\t\t*2022 Baseline has been updated to include Texon and Rhenoflex acquisitions in 2022, and updated to exclude divestments of EU Zips business and Madagascar\/Mauritius made through the course of 2023.**Preferred primary raw materials restated due to reclassification of fibreglass and clay raw materials\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Summary of Progress Against our 2026 Targets<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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\n\t\t\t\t\t\t\t\t\t2024 is the second year of delivery against our 2026 targets and is therefore the midpoint in the four year time horizon over which the targets have been set. The below table illustrates the advancements made towards our 2026 targets and highlights the positive outcomes achieved in 2024. The results achieved in 2024 across these seven core metrics have undergone public limited assurance aligned with ISAE 3000 assurance standards, providing confidence in the integrity and credibility of reported performance levels.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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STRATEGY
PILLAR<\/td>\r\n		METRIC<\/td>\r\n2026
TARGET<\/td>\r\n		2024 PERFORMANCE<\/td>\r\n% ACHIEVEMENT OF 2026 TARGET VS 2022 BASELINE<\/td>\r\n<\/tr>\r\n
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\"Energy\"ENERGY<\/span><\/td>\r\nScopes 1 & 2 emissions reduction<\/span><\/td>\r\n22% reduction
from 2022 baseline<\/span><\/td>\r\n		51% reduction<\/span><\/td>\r\n232%<\/span><\/td>\r\n<\/tr>\r\n
\"Materials\"MATERIALS<\/span><\/td>\r\n% preferred primary raw materials<\/span><\/td>\r\n60%<\/span><\/td>\r\n46%<\/span><\/td>\r\n76%<\/span><\/td>\r\n<\/tr>\r\n
\"Water\"WATER<\/span><\/td>\r\nWater recycling rate<\/span><\/td>\r\n33% increase in rate
of water recycling
from 2022 baseline<\/span><\/td>\r\n		14% increase<\/span><\/td>\r\n44%<\/span><\/td>\r\n<\/tr>\r\n
\"Waste\"WASTE<\/span><\/td>\r\nZero waste to landfill

% effluent compliance to the Roadmap to Zero standards<\/span><\/td>\r\n		Zero waste to landfill


100% compliance<\/span><\/td>\r\n		87% reduction


99.8%<\/span><\/td>\r\n		87%

99.8%<\/span><\/td>\r\n<\/tr>\r\n
\"People\"PEOPLE<\/span><\/td>\r\n% females in senior leadership
% employees covered by GPTW certification<\/span><\/td>\r\n
30%

88%<\/span><\/td>\r\n
30%

95%<\/span><\/td>\r\n		100%

108%<\/span><\/td>\r\n<\/tr>\r\n<\/tbody><\/table><\/div><\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Materiality Assessment<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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\n\t\t\t\t\t\t\t\t\tAt Coats, we regularly review and address the sustainability issues that are crucial to our business and stakeholders. Since 2011, we have conducted comprehensive materiality assessments every two years, with the latest in 2023. These assessments guide our sustainability strategy and reporting, focusing on environmental, social and governance issues that are most important for us and our stakeholders.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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\n\t\t\t\t\t\t\t\t\tThe assessment below illustrates a very high degree of correlation between the highest material issues and our 5 Pillar sustainability strategy, encompassing Energy, Materials, Water, Waste and People, underlining the continued alignment of our underlying sustainability strategy to the needs of our business and those of our key stakeholders.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Top 25 ESG Issues<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\"Materiality\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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\n\t\t\t\t\t\t\t\t\tIn 2024, we initiated focus on the new EU Corporate Sustainability Reporting Directive (CSRD) and the underlying European Reporting Sustainability Standards (ESRS) which will come into scope for Coats. We conducted extensive work in 2024 on development of a Double Materiality Assessment (DMA) with reference to 25 relevant ESRS topics. We continue to work on our CSRD commitments, in alignment with new EU reporting dates and mandatory disclosure points.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Governance\nand Management<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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\n\t\t\t\t\t\t\t\t\tThe Board of Directors oversees and is ultimately\naccountable for the sustainability strategy at\nCoats. In 2022 we created a Sustainability Board\nSubcommittee, which has met twice annually in\nboth 2023 and 2024…<\/i>More Details<\/a>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\"Governance\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t
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Stakeholder Engagement<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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\n\t\t\t\t\t\t\t\t\tOur success relies on the trust and satisfaction of our stakeholders. We engage regularly and transparently with employees, customers, shareholders, the environment, communities, and suppliers to incorporate their views into our strategic decisions. We utilise a range of communication channels, including surveys, meetings, webinars, reports, newsletters, social media, and other methods. Our results and achievements are communicated to stakeholders through our <\/i>Annual Report<\/a>, <\/i>Sustainability Report<\/a>, and website. We value feedback from our stakeholders and seek ways to enhance our relationships and collaborations. Together, we aim for a sustainable and prosperous future for all.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>","protected":false},"excerpt":{"rendered":"

Sustainability Strategy Overview We are now half way through our 2023 to 2026 strategy period, and through 2024 we have made further significant strides towards achievement of our 2026 targets. Through our five-pillar strategic framework, we are dedicated to integrating sustainability into our operations, continuously improving our environmental, social, and governance practices, and this is […]<\/p>","protected":false},"author":3,"featured_media":33691,"parent":6880,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_acf_changed":false,"footnotes":""},"class_list":["post-7092","page","type-page","status-publish","has-post-thumbnail","hentry"],"acf":[],"yoast_head":"\nSustainability Strategy | Coats Group plc<\/title>\n<meta name=\"description\" content=\"We are now half way through our 2023 to 2026 strategy period, and through 2024 we have made further significant strides towards achievement of our 2026 targets.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.coats.com\/it\/sustainability\/sustainability-strategy\/\" 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