LucyGroup-ARA2024_spreads web ready_FINAL

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BUSINESS OVERVIEW STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS SHAREHOLDER INFORMATION

Environmental As a business, we operate with respect for our natural environment and a keen focus on reducing our impacts. We are committed to taking decisive actions that improve our environmental performance, from adhering to legislation and embracing cutting-edge technologies to adopting best practices that align with the expectations of our diverse stakeholders. Carbon emissions

Lucy Group carbon intensity Calculated with tCO 2 e and third-party sales figures

biodiversity, we aim to create sustainable habitats, support native species and mitigate the impact of development activities on the natural environment. Across the entire Group, we aim to complete at least one BNG or environmental project per site every six months: the target for 2024 was 30 projects and we completed a total of 47. We are committed to implementing waste management strategies to reduce waste, increase recycling and improve sustainability practices. We are on track to eliminate single use plastics by 2030 and have already beaten our target of reducing non-recyclable waste by 40% by 2025. We have improved our supplier and contractor approval processes to promote fair labour practices across our supply chain. Additionally, we are continuously refining our audit procedures to strengthen compliance. These efforts reflect our strong commitment to ethical standards, ensuring that worker treatment aligns with our core values.

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We have adopted emission intensity reporting as a measure to enhance transparency and accountability in our environmental practices. This approach allows us to track and communicate the amount of greenhouse gas emissions relative to our economic output, helping to identify improvement areas and develop targeted strategies to mitigate our overall environmental impact. In the past four years, we have recorded a 25.1% reduction tCO 2 e/£m in emissions intensity. Mid-term targets allow us to adapt and refine our strategies, helping us align our operational trajectory with our sustainability commitments. This year, we conducted the first phase of a sustainability perception survey focusing on the sustainability topics that matter most to our employees, enabling us to pinpoint areas where we can make the most significant impact. We prioritise enhancing the energy efficiency of our rental properties to benefit both our tenants and the environment. As part of this effort, we have continued to upgrade insulation across our portfolio. Currently, 82% of our properties achieve an EPC rating of C or above, helping to lower energy consumption for tenants and reduce overall emissions.

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Following an assessment of our emissions in accordance with ISO 14064 Part 1 2018, we have adopted Achilles’ carbon accounting software (E-Manage) to fulfil the criteria for carbon reduction certification. During 2024, the Group made significant strides in understanding and reporting our emissions data, alongside launching impactful sustainability initiatives across all businesses. At the beginning of the year, we analysed our emissions targets to establish ambitious, long-term goals that drive meaningful change. These targets, calculated with the Science Based Targets initiative (SBTi) Net Zero Tool introduced in 2021, lay out a clear, data-driven ten year plan using 2021 as the baseline. Our aim is to reduce absolute emissions, which poses a significant challenge as our business is expanding. In 2021, Group emissions were 18,058 tCO 2 e. By 2024, this figure has risen to 19,430 tCO 2 e, due primarily to business growth, acquisitions, and the extension of reporting to all Group businesses. By 2031, we aim to reduce emissions to 10,473.6tCO 2 e, representing a 4.2% annual reduction against the baseline. This goal reflects our dedication to embedding sustainability into every aspect of our business, while remaining adaptable to the evolving demands of a growing enterprise.

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2021

2023 2022 Lucy Group has achieved a 25.1% decrease in carbon intensity (tCO 2 e/£m) over the last four years.

2024

Ecology and waste management At our housing development sites, we deliver a minimum of 110% Biodiversity Net Gain (BNG) to leave all sites in a measurably better state than before the build. By promoting

110.8 tCO 2 e Saved through the installation of PV Panels

3.6% reduction in Scope 1 and 2 emissions

7.6% Reduction in mains electricity and gas consumption kWh from 2021 to 2024

43.1% reduction in non-recyclable waste globally from 2021–2024

Net Zero (90% reduction in absolute emissions)

Reduction in absolute emissions by 35% (in line with Net Zero)

Lucy Properties achieve EPC rating of C or above on 100% of properties

Group achieved non-recyclable waste reduction target (reduce by 40% by 2025)

Sustainability Framework created

Expand Scope 3 reporting

2023

2024

2026

2028

2031

2050

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NET ZERO

2024

2025

2027

2030

2031

2021

Eliminate single-use plastics

Establish future emission targets

Calculate embodied carbon of main product lines

Reduce non-recyclable waste by 40% at site level from 2021 baseline

All sites gained Carbon Reduce Certificate

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

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Lucy Group Ltd Annual Report & Accounts 2024

LUCYGROUP.COM

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