LucyGroup-ARA2024_spreads web ready_FINAL

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BUSINESS OVERVIEW STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS SHAREHOLDER INFORMATION

Governance and People At Lucy Group, we strive to be a force for good. We are committed to positively contributing to wider society and enhancing the wellbeing of our people, stakeholders and local communities, to leave a lasting legacy for the future. We focus on providing safe and healthy environments that promote quality of life for all; driving equality and inclusion in our business to build on the breadth and depth of diversity that our employees bring.

CASE STUDY

Beach clean-up in Saudi Arabia

This initiative not only underscored the importance of maintaining pollutant-free public spaces for future generations, but also served to raise awareness of the crucial role that beaches play in protecting the natural environment, preserving marine ecosystems, and supporting biodiversity.

In September, Lucy Switchgear Arabia (LSA) employees, in collaboration with the Ministry of Environment, took part in International Coastal Clean-up Day 2024 by leading a beach cleaning initiative at Half Moon Beach in Dhahran. The LSA team worked together to clean a 1.5km stretch of the beach, collecting waste and debris and ensuring it was properly disposed of in designated areas.

As part of our efforts to strengthen safety, we have enhanced the ‘BE SAFER’ programme, built around seven essential safety principles aimed at preventing serious injuries and fatalities. These principles empower employees to take personal responsibility for their safety, collaborate with colleagues to identify potential risks, and implement effective solutions. To complement this programme, we have introduced the EVOTIX OHS management system, which has streamlined the reporting of safety audits. This system ensures the timely closeout of actions, allowing employees to easily submit reports via mobile devices. This will be extended in 2025 to the reporting of hazards, incidents and near-misses. We prioritise the safety of our operations by rigorously assessing our facilities against 24 comprehensive safety criteria. These criteria cover key areas such as compliance, documentation, training, and safety communications, providing a robust baseline for continuous improvement. To address workplace hazards proactively, we utilise our Hazard Identification Ticket (HIT) process, which allows employees to report and track hazards until they are resolved. This system ensures that risks are identified and mitigated before incidents occur. In 2024, we recorded 1,934 hazard tickets, marking a 153% increase over the past three years, reflecting the growing engagement of our teams in building a safer work environment. We record and report all incidents and accidents to ensure transparency. Our investigation process uses various methodologies to identify the root cause and ensure effective corrective actions are implemented. We collect accident data on a monthly basis and use data analysis to identify trends. Key safety metrics, such as Total Recordable Incident Rates (TRIR) and Frequency Rates (FR), are integral to tracking our progress. TRIR is calculated per 1,000 employees, while FR is measured per 100,000 hours worked. Despite an increase in production across our business sectors, we achieved a TRIR of 5.15 in 2024, representing a 22% decrease compared to the previous year. Our FR remains the same at 0.22 and is a focus area for further improvement.

Wates Principles As a private company, we report in accordance with the Wates Corporate Governance Principles for Large Private Companies. We therefore apply the six Wates Principles of Purpose & Leadership, Board Composition, Director Responsibilities, Opportunity and Risk, Remuneration, and Stakeholder Relationships and Engagement. These are covered in the sections on Corporate Governance (pages 66 to 83), Risk Management (pages 50 to 55), and Relations with Stakeholders (pages 78 to 79). Fair labour In 2024, we continue to report zero cases of corruption and discrimination – an outcome that reflects the strength of our policies and commitment to ethical standards. This milestone is not only a result of our robust compliance framework, but also of proactive measures we have taken to foster a vigilant and accountable culture across all levels of the organisation. To reinforce these values, we have implemented comprehensive employee training programmes, designed to equip our teams with the knowledge and tools to identify, prevent and address misconduct. These sessions included scenario-based ethics training, which taught employees how to navigate ethical dilemmas and report concerns using practical, real-world examples. By aligning our policies with real-world actions, we are creating an environment where integrity is not just expected but actively practiced. Looking forward, we remain committed to continuous improvement, ensuring that Lucy Group adheres to the highest standards for ethical excellence in the workplace. Health and safety At Lucy Group, ensuring the wellbeing of our employees, contractors, and anyone impacted by our operations is our foremost priority. To achieve this, we have implemented comprehensive health and safety management systems designed to create a culture of safety and care. Our continued adherence to the globally recognised ISO 45001:2018 certification across all certified sites demonstrates our commitment to upholding the highest standards. This framework drives ongoing improvements, allowing us to remain at the forefront of workplace safety.

CASE STUDY

Rhino orphanage in South Africa

Some UK members of staff completed the coast-to coast cycling challenge and others cycled from London to Brighton. A total of £4,000 was donated, with Lucy Electric South Africa adding a further £1,000.

Located in Limpopo Province, South Africa, the Rhino Orphanage is a sanctuary for baby rhinos that have been orphaned due to poaching. The facility provides vital care and rehabilitation to these vulnerable creatures that live under the threat of extinction, with the aim of eventually releasing them back into the wild. Funding is by far the biggest obstacle for the sanctuary. Therefore, employees at Lucy Electric and Lucy Group HQ undertook fundraising walks, runs and bike rides to which the Company donated £1 for every mile covered.

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Lucy Group Ltd Annual Report & Accounts 2024

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