Company Overview

Lockie Group, a leading manufacturer of printed security seals, clinical waste products and paper products, is committed to sustainable operations and environmental stewardship. Recognising the urgent need to address climate change, we pledge to achieve net zero greenhouse gas (GHG) emissions across our operations and value chain by 2050, with interim targets to ensure measurable progress.

Commitment Statement

We commit to:

• Achieving net zero GHG emissions across Scope 1, Scope 2, and Scope 3 emissions by no later than 2050, in alignment with the Paris Agreement’s goal to limit global warming to 1.5°C.
• Setting science-based targets validated by the Science Based Targets initiative (SBTi) to guide our emissions reduction strategy.
• Embedding sustainability into our core business practices, from production to supply chain management, to create long-term value for our stakeholders and the planet.

Scope of Commitment

This commitment covers:

• Scope 1: Direct emissions from owned or controlled sources (e.g., fuel combustion in manufacturing processes, company vehicles).
• Scope 2: Indirect emissions from purchased energy (e.g., electricity, water, or heating used in facilities).
• Scope 3: All other indirect emissions in our value chain (e.g., raw material extraction, transportation, product use, and end-of-life disposal).

Interim Targets

To ensure progress toward net zero, we will:

• By 2030, reduce Scope 1 and Scope 2 emissions by 50% compared to a 2023 baseline.
• By 2030, reduce Scope 3 emissions by 30% compared to a 2023 baseline.
• By 2040, achieve an 90% reduction in total GHG emissions across all scopes.
• Annually report progress against these targets in alignment with global standards (e.g., CDP, TCFD).

Strategies and Actions

1. Energy Efficiency and Renewable Energy

• Transition to 100% renewable electricity for all facilities by 2030 through on-site solar installations and renewable energy credits (RECs).
• Upgrade equipment to energy-efficient models (e.g., high-efficiency motors, LED lighting).
• Implement real-time energy monitoring systems to optimise consumption.

2. Process Optimization

• Adopt low-carbon manufacturing technologies (e.g., electric furnaces, solar energy consumption where feasible).
• Reduce waste through lean manufacturing and circular economy principles (e.g., recycling scrap materials).
• Invest in carbon capture and storage (CCS) technologies for hard-to-abate emissions.

3. Supply Chain Decarbonization

• Collaborate with suppliers to set their own science-based emissions reduction targets.
• Prioritise low-carbon raw materials (e.g. bio-based plastics, sustainably sourced paper).
• Optimise logistics by using electric or hydrogen-powered vehicles and consolidating shipments.

4. Product Innovation

• Design products for durability, recyclability, and energy efficiency during use.
• Implement take-back programs to ensure responsible end-of-life product management.
• Innovate to reduce emissions in product use phases (e.g., energy-efficient machinery).

5. Offsetting and Carbon Removal

• For residual emissions, invest in high-quality carbon offsets (e.g., reforestation, renewable energy projects) certified by credible standards (e.g., Gold Standard, Verified Carbon Standard).
• Support carbon removal initiatives (e.g., direct air capture, afforestation) to achieve true net zero.
• All company vehicles will be electric

Governance and Accountability

• Sustainability Committee: A dedicated committee, led by the Chief Sustainability Officer, will oversee the net zero strategy, monitor progress, and report to the Board of Directors.
• Employee Engagement: All employees will receive training on sustainability goals, with incentives for contributions to emissions reduction initiatives.
• Stakeholder Collaboration: Engage customers, suppliers, and industry partners to align on net zero objectives and share best practices.
• Transparency: Publish an annual sustainability report detailing emissions data, progress against targets, and future plans, verified by third-party auditors.

Metrics and Reporting

• Conduct annual GHG emissions inventories following the GHG Protocol.
• Track key performance indicators (KPIs) such as energy intensity, renewable energy percentage, and supplier engagement rates.
• Maintain a public dashboard on our website to share real-time progress.

Investment and Financing

• Pursue green financing options (e.g., green bonds, sustainability-linked loans) to fund large-scale decarbonization projects.
• Partner with government and industry programs to access grants and incentives for clean energy and emissions reduction.

Risk Management

• Identify and mitigate climate-related risks (e.g., regulatory changes, carbon pricing, supply chain disruptions) through scenario planning and stress testing.
• Integrate climate risk assessments into enterprise risk management frameworks.
• Regularly update our net zero strategy to reflect technological advancements and policy developments.

Community and Advocacy

• Support local communities through investments in renewable energy projects and environmental education programs.
• Advocate for policies that accelerate the transition to a low-carbon economy, including carbon pricing and renewable energy incentives.

Review and Continuous Improvement

• Review this commitment and associated strategies annually to incorporate emerging technologies, scientific insights, and stakeholder feedback.
• Conduct a comprehensive reassessment every five years to ensure alignment with global climate goals.
• Engage independent experts to audit and validate our net zero roadmap.

Approval

This commitment has been reviewed and approved by:

• Name: Tom Beresford
• Date: September 2022
• Signature: Tom Beresford