Carbon Reduction Policy

CARBON REDUCTION PLAN (CRP)

Supplier name: Mecsia Ltd (the Mecsia Group)
Publication date: December 2025

Commitment to Achieving Net Zero

Mecsia Ltd is committed to achieving Net Zero emissions by 2050 in line with UK Government targets.
This Carbon Reduction Plan outlines our Group-wide emissions baseline, current reporting year emissions, and our reduction trajectory.

Baseline Emissions Footprint

Baseline emissions are a record of greenhouse gases emitted prior to the introduction of carbon reduction strategies and initiatives.
Mecsia Group has selected 2023 as its baseline year, aligned to the earliest consistent, externally verified dataset available.

Please note: As the Mecsia Group continues to grow, some companies currently within our portfolio may not have been included in the original baseline due to acquisition date. Consequently, our baseline may need to be recalculated to reflect significant changes in our organisational structure. This CRP will be updated accordingly to ensure accuracy and transparency.

Baseline Year: 2023

Additional Details Relating to the Baseline Calculations

• Baseline emissions are drawn from our externally verified Planet Mark 2023 report, covering Scope 1, Scope 2, and the required Scope 3 categories: Business Travel, Employee Commuting, Waste generated in operations, and Upstream Transportation and Distribution (Downstream Transportation and Distribution is not applicable). For Scope 3 Category 4 (Upstream Transportation & Distribution), emissions will be calculated using annual delivery and freight spend and the appropriate DEFRA spend-based logistics emission factors, consistent with the GHG Protocol where supplier transport data is unavailable – this methodology is applied to 2024 data.
• The baseline represents the Group structure as of 2023, excluding acquisitions and organisational changes made during 2024
• Any subsidiary acquired in 2024 and 2025, is excluded from the 2023 baseline in accordance with GHG Protocol organisational boundary rules and PPN 06/21 guidance

Baseline Year Emissions (2023)

Current Emissions Reporting

Reporting Year: 2024

* Data does not include Scope 3 Category 4 (Upstream Transportation and Distribution) as this was covered under Category 1 (Purchased Good and Services).  The inclusion of the data in 2024 illustrates our commitment to improving data quality.

Emissions Reduction Targets

We have adopted an intensity-based reduction target to reflect the expected growth of the organisation and the evolving nature of our service delivery model. As our Group continues to expand, revenue and operational activity may increase year-on-year, and therefore carbon intensity (tCO₂e per £m revenue) provides a more accurate measure of underlying decarbonisation performance.

We project that carbon intensity (tCO₂e per £m revenue) will decrease by 35% by 2030 relative to the 2023 baseline, reflecting efficiency improvements across energy management, fleet decarbonisation, digitalisation, and operational optimisation.

The carbon reduction trajectory is presented as an indexed pathway relative to our 2023 baseline emissions (927.6 tCO₂e, indexed to 100). Targets are expressed as percentage reductions rather than forecast absolute emissions to avoid false precision. Progress will be tracked annually against this baseline, with absolute emissions disclosed for reporting years.

Companies acquired during 2024 and 2025 have not been captured in the above Scope emissions, but all are fully aligned to the Group policies, targets and initiatives.

The Mecsia Group will transition to company-level CRPs in early 2026 through the implementation of the carbon reporting platform Flotilla, allowing greater granularity and accountability at subsidiary level.

Carbon Reduction Projects

Completed Carbon Reduction Initiatives (Since 2023 Baseline)

The following measures have been implemented since the 2023 baseline year and contribute to current reductions:

• 5.6% reduction in carbon emissions per FTE
• ISO 14001 Accreditation (Mandatory Across the Group)
  Each subsidiary within the Mecsia Group is required to achieve and maintain certification
• External verification through Planet Mark, improving data integrity and carbon literacy across the Group
• Initial rollout of energy efficiency measures (LED lighting upgrades, improved HVAC control through BMS optimisation)
• Reduction in business travel emissions through optimisation of engineering routes and greater use of virtual collaboration tools
• A low-emission company car scheme is implemented for all management positions, whereby electric or hybrid vehicles are provided as standard to support the organisation’s carbon reduction objectives
• Improved waste management and recycling initiatives
• Implementation of a Group ESG strategy aligned with Net Zero principles
• Subsidiary Alignment
  Since acquisition, all subsidiaries have adopted Mecsia Ltd environmental governance framework, including alignment with ISO 14001, the Group Net Zero strategy, and Group-wide carbon reduction initiatives. They are already operating in accordance with Group ESG/Sustainability policies despite being outside the 2023–2024 reporting boundary.  All Group subsidiaries are currently undertaking preparatory work to join the Flotilla carbon reporting platform and will operate under the same carbon management standards once integrated.

Future Carbon Reduction Initiatives

Mecsia Ltd intends to deliver further reductions through a structured programme of initiatives, including:

• Group-wide deployment of the Flotilla carbon reporting platform in Q1 2026, enabling each company to produce its own CRP and decarbonisation plan (H1 2026)
• Establish a Group-wide energy procurement strategy (Q1 2026) to transition all eligible sites to 100% renewable electricity contracts (backed by REGO certificates) over the next 3 years
• Enhanced supplier engagement to support low-carbon procurement and Scope 3 emission reductions, enabled by Flotilla (Q3 2026)
• Development of a Group Energy & Carbon Strategy, supporting improved energy efficiency across managed buildings and operations (Q3 2026)
• Expanded employee commuting initiatives including EV salary sacrifice and working-from-home optimisation (Q4 2026)
• Acquired companies will be fully incorporated into the Group’s carbon reporting boundary from the next complete reporting cycle (H2 2026)
• Increased electrification of fleet vehicles, prioritising low- and zero-emission options and reduced reliance on ICE vehicles
• Greater adoption of smart systems, BMS optimisation, IoT sensors, and analytics to improve energy performance of company sites and client sites (2027)
• Continued exploration and installation of renewable energy procurement options (i.e. onsite solar feasibility)
• Reduced waste to landfill and increased recycling across all offices and operations

Declaration and Sign-Off

This Carbon Reduction Plan has been completed in accordance with PPN 06/21 and associated guidance and reporting standards.

Emissions have been recorded and reported in line with:

• the GHG Protocol Corporate Standard
• UK Government GHG Conversion Factors
• SECR (for Scope 1 & 2)
• Corporate Value Chain (Scope 3) Standard