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STRATEGIC REPORT

Biodiversity and waste management

Capability building A major highlight of 2025 was the three-day Sustainability Workshop, held from 11–13 November in the UK and streamed globally. The event brought together sustainability employees, colleagues with sustainability related KPIs, and executive leadership. Featuring external experts from Cranfield University and Achilles, the sessions covered critical topics such as Sustainability Maturity & Materiality, Scope 3 Expansion, IFRS & MSA Compliance, Roadmap Planning, Embodied Carbon and Science Based Targets initiative (SBTi) goals. The workshop delivered strong outcomes, including improved internal sustainability communications, greater collaboration across business units, and actionable roadmaps for Scope 3 data expansion and embodied carbon measurement. Efforts were recognised internationally when Lucy Electric Thailand received the EECIBA Award for Environmental Sustainability on 25 June, 2025. The award highlighted our clear roadmap to net zero, robust carbon metrics and innovative initiatives that engage employees and adopt sustainable technologies. This achievement underscores the strength of our global approach and the dedication of our teams to driving meaningful change. Looking ahead, we will continue to expand renewable energy projects, enhance energy efficiency across global sites, and deepen employee engagement in sustainability. Our journey to net zero is not just a target – it is a long term commitment to creating sustainable value.

Environmental We operate with a clear respect for the natural environment and a strong focus on reducing our environmental footprint. Our commitment goes beyond compliance: we take decisive action to continually improve our environmental performance by embracing innovative technologies, strengthening our practices and meeting the evolving expectations of our stakeholders.

Beyond carbon reduction, we are dedicated to enhancing biodiversity within our communities, promoting resilient ecosystems, improving local environmental health and enriching community wellbeing. In partnership with Wild Oxfordshire, Lucy Real Estate hosted nature walks and bee hotel workshops to engage tenants and support native species. These initiatives form part of our broader biodiversity net gain strategy, which aims to create sustainable habitats and mitigate the environmental impact. In 2025, we completed 56 biodiversity-related initiatives. Our commitment also extends to waste reduction and promoting a circular economy, reflecting our goal of minimising the ecological footprint of our operations. Building on the success of previous years, we continued to drive down non-recyclable waste globally and introduced innovative packaging solutions, such as pallet straps at Lucy Electric India, reducing reliance on plastic stretch film. Employee participation remained central to our strategy, with Lucy Electric Brazil launching a campaign encouraging staff to bring reusable mugs and bottles, reducing single-use plastics and fostering a culture of sustainability.

This year marked significant progress in our sustainability journey. Our Oxford headquarters underwent a major renovation to improve energy efficiency, including the installation of LED lighting with motion sensors, enhanced insulation, and advanced monitoring systems to reduce consumption. At our manufacturing sites, both Lucy Middle East and Lucy Switchgear (FZE), and Lucy Switchgear Arabia (LSA) transitioned from diesel powered ovens to electric alternatives, cutting direct emissions and improving operational efficiency. Lucy Real Estate also advanced its sustainability agenda by initiating a phased programme to replace one diesel maintenance van with an electric vehicle each year until 2028. This long-term commitment will significantly reduce fleet emissions. In addition, the team accelerated the process of connecting new developments to the grid quicker, minimising reliance on diesel generators during construction and lowering emissions associated with temporary power solutions.

Carbon emissions reporting and reduction

Lucy Group continues to take decisive action to address the global climate challenge and reduce greenhouse gas emissions across our operations. Guided by science based targets and stakeholder expectations, we remain committed to achieving net zero emissions by 2050, with interim milestones set for 2031 and an annual reduction target of 4.2% from our baseline. To ensure transparency and accountability, we report emissions intensity alongside absolute emissions, enabling us to track progress relative to economic output and identify opportunities for efficiency gains. In 2025, our total emissions stood at 18, 431 tCO 2 e, reflecting continued progress in reducing Scope 1 and 2 emissions and expanding our Scope 3 data coverage. Over the past four years, we have achieved a 24.6% reduction in emissions intensity (tCO 2 e per £M), reinforcing our commitment to sustainable growth.

3

800

NET ZERO

700

655

654

600

500

494

400

2021

2024

2024

2025

2027

2030

2031

2031

2050

300

343

301

Weight (tonnes)

200

Net zero (90% reduction

Exploring Scope 3 expansion

Calculate embodied carbon of main product lines

Baseline year for emissions Scope 1,2 and 3 in line with ISO-14064-1

100

Reduction in absolute emissions by 35% in line with net zero)

0

2021

2022

2023

2024

2025

in absolute emissions)

Lucy Group has achieved a 54% reduction in waste to landfill since the baseline year of 2021.

Establish future emission targets

Last three sites to gain Carbon Reduce Certificate 1

Reduce non recyclable waste by 40%

Eliminate single-use plastics

1 Does not take into account acquisitions post 2024.

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Lucy Group Ltd Annual Report & Accounts 2025

LUCYGROUP.COM

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