Carbon Reduction Plan

1.0 Commitment to achieving Net Zero

Satellite Applications Catapult Limited is committed to achieving Net-Zero emissions by 2030 or sooner.

In line with a science-based target, Satellite Applications Catapult (SAC) have made a 2030 net zero commitment to limit warming to 1.5C.

To achieve net zero greenhouse gas (GHG) emissions, we will:

• Reduce our Scope 3 emissions by 50% by 2030 from our FY20 base year.
• Neutralise hard-to decarbonise residual emissions with certified GHG removals by 2030.
• Continue to reduce emissions beyond 2030 in line with science-based targets Based on the highest impact areas of the business, we have set both interim and 2030 targets to achieve an absolute 50% reduction against the FY20 baseline.

2.0 Baseline Emissions Footprint

Baseline emissions are a record of the greenhouse gases that have been produced in the past and were produced prior to the introduction of any new strategies to reduce emissions. Baseline emissions are the reference point against which emissions reduction can be measured.

Our baseline includes our greenhouse gas emissions from the seven GHG’s named by the Kyoto Protocol:

• Carbon Dioxide (CO2)
• Hydrofluorocarbons (HCFC’s)
• Methane (CH4)
• Nitrous Oxide (N2O)
• Nitrogen Trifluoride (NF3)
• Perfluorocarbons (PFC’s)
• Sulphur Hexafluoride (SF6)

Our emissions are calculated in tonnes of carbon dioxide equivalent (CO2e). using the appropriate conversion factors published by the department of Business Energy and Industrial Strategy (BEIS) or other recognised and accredited conversion factors.

We are using the “Operational Control Approach”, defined by the GHG Protocol for our reporting boundary.

SAC report accounts based on a financial year and have decided to use FY20 as the baseline as it covers 9 months of 2019 and 3 months of 2020 and aligns with the accounts. FY20 was also used as it represents a more realistically a typical non-covid year.

3.0 Baseline Year: FY20: (April 2019 to March 2020)

3.1 Additional Details relating to the Baseline Emissions calculations.

SAC are a growing organisation and recognise that the baseline calculations for FY20 (Apr 2019-March 2020),will include some data likely to be reduced due to the effects of COVID-19 that was affecting working patterns during Q1 2020. The full effect of this reduced baseline may not be evident until working patterns return to full occupancy of buildings and facilities in future years.

Baseline Year Emissions

• Scope 1 – 141.4
• Scope 2 – 417.7
• Scope 3 (included sources) – 1,836.6
• Total Emissions = 2,395.1

Reporting Year: FY21 (April 2020 to March 2021)

• Scope 1 – 50.22
• Scope 2 – 300
• Scope 3 (included sources) – 303.6
• Total Emissions = 653.82

Reporting Year: (FY22 April 2021 to March 2022)

• Scope 1 – 31.12
• Scope 2 – 287.97
• Scope 3 (included sources) – 779.1
• Total Emissions = 1,098.22

Reporting Year: (FY23 April 2022 to March 2023)

• Scope 1: 30.79
• Scope 2: 299.80
• Scope 3 (included sources): 910.03
• Total Emissions: 1,240.6

Reporting Year: (FY24 April 2023 to March 2024)

• Scope 1: 39.9
• Scope 2: 225.9
• Scope 3 (included sources): 562.28
• Total Emissions: 828.1

Note: Within the CMP, we have reported on all identified categories in considering both the FY20 baseline and the subsequent FY21, FY22, FY23 & FY24 performance years. Our focus during these reporting years has been on developing and growing the UK Space Sector, principally through facilitating and encouraging new start-up businesses and technologies, involving satellite applications. Consequently, we do not develop “products”, therefore we have no Cat 9 Product Downstream Transportation and Distribution emissions (Scope 3) to report within the financial years covered by the CMP.

Note: Scope 3 category emissions are split into a total of 15 categories, however PPN06/21 only mandates the reporting of five categories (sources):

• Cat 4 Upstream Transportation & Distribution.
• Cat 5 Waste from Operations.
• Cat 6 Business Travel.
• Cat 7 Business Commuting.
• Cat 9 Downstream Transport & Distribution.

Our Net Zero Targets are based on reductions in emissions across all 15 categories (if applicable).

3.2 Emission Reduction Targets

In order to continue our progress to achieving Net Zero, we have adopted the following carbon reduction targets.

We project that carbon emissions will decrease over the next years to 1,418 t CO2e by FY30. This is a reduction of 50% on the FY20 baseline.

3.3 Progress against these targets can be seen in the graph below:

4.0 Carbon Reduction Projects

The following environmental management measures and projects are in progress and included in our strategy (Carbon Management Plan) since the baseline FY20. The carbon emissions reduction achieved are detailed in the chart above: 1,567.1 t, CO2e in FY24, a 65% reduction against the FY20 baseline. The reductions since FY23 are as the business has adopted new ways of working, reduction strategies/projects and improved data quality.

4.1 Completed and On-Going GHG Reduction Projects

During FY23 we conducted an Employee Survey to find out about travelling to work and new working patterns. The results have provided trends showing increasing numbers of employees working from home. This is not unexpected as since Covid-19 working patterns have changed in many businesses. Anew working pattern survey will be carried out in the near future to update the previous information.

In FY23 a Net Zero Working Group was established comprising of key stakeholders to provide GHG data and influence changes. Some of the Carbon Management Plan will require changes to working practices and this forum will be able to decide on these proposals before creating firm proposals to the business.

The travel supplier changed from Key Travel to Click Travel. They now provide more detailed information on business travel including distances travelled and carbon emissions. This activity data is accurate if converting travel to GHG emissions, compared to using only spend based methods.

Some of the buildings need to have separate sub-meters fitted to accurately capture energy consumption. A project is underway to improve metering at Westcott. Investigation is also underway to account for the consumption of energy at the HQ building in Harwell. Part of the CRP is to reduce electricity use and convert these to renewable supplies.

In FY24/25 we shall be focusing on the following areas to further reduce our carbon footprint:

• Energy Management.
• Green Travel Plan.
• Procurement and Supply-Chain.
• Comms and Cultural Change Programme.

4.2 Our near-term target and details of our Carbon Management Plan are detailed below:

As a near term target, we will use aim to reduce GHG emissions to 1,796 t CO2e by FY25.

Some of these measures have been implemented, such as the move towards a new business travel methodology for more accurate carbon reporting.

To achieve net zero Greenhouse Gas (GHG) emissions target we will implement the following measures:

• Reduce our scope 3 emissions by at least 50% by FY30 from our FY20 base year.
• Continue to report annually using the CRP methodology and publishing on our website each March.
• Plan to reduce emissions beyond FY30 in line with science-based targets on a trajectory to achieve Net Zero.
• Reduce scope 1 & 2 emissions in line with SBTi targets.

To achieve these reductions, we will be implementing a Carbon Management Plan outlining actions, governance, and regular reporting. We are committed to the following:

• Improving our environmental performance by monitoring and reviewing against our targets (quarterly).
• Implement a new Business Travel methodology to increase the accuracy of our reporting.
• Continually updating our carbon management plan, publicly disclosing our progress annually.
• Improving the accuracy of our GHG emissions data across our value chain, whilst continuing to seek and apply best practice in our monitoring and reporting.
• Comply with and where practical, aim to exceed environmental legislation. We will disclose our emission data to support customer’s environmental procurement policies.
• Review our purchasing practices to reduce consumption and minimise waste.
• Encourage our suppliers to similarly set net zero targets and disclose emissions.
• Support our employees in reducing their commuting and business travel through implementing salary sacrifice schemes for bikes and electric vehicles.

4.3 Business Strategy

We also recognise our role to drive positive net environmental impact beyond our business operation and value-chain and have embedded climate action into our business strategy. We will:

• Develop a methodology to monitor and assess the potential net environmental impacts of our future innovation projects and programmes.
• Collaborate with our network to support policies and drive innovation that accelerates the transition to net zero.

4.4 Actions Required in Targeted Areas of the Business

To drive our carbon reduction plan we will be focusing on the following proposed actions and activities:

• Electrical and Optical Equipment: introduce a procurement policy to initially reduce spend on electrical equipment and to opt for low impact equipment and request emission data to calculate total emissions more accurately.
• Goods & Services: establish an internal accounting activity to calculate emissions from goods and services and create incentives to reduce them more precisely. Include better information on quantity and weight of products to allow better carbon accounting.
• Business Travel: aim to limit employee travel with incentives or a blanket policy to limit annual travel. Introduce a new Business Travel system to provide detailed CO2e emissions for travel. Increase employee awareness, through a structured campaign, of the need to reduce Business Travel to combat CO2e emissions, and to either use alternative travel methods, including the train, where possible or join meetings and engagements virtually.
• Employee Commuting & Working from Home: conduct regular employee surveys on travel to work options and working from home GHG emissions.
• Machinery (not elsewhere classified): work with procurement to develop and implement a procurement policy to initially reduce spend on machinery, then to opt for low carbon impact equipment with emission data to calculate total emissions more accurately.
• Electricity, Gas and Water Supply: where we are tenants, aim to negotiate with lessor (Landlord), to switch tariffs, reduce energy/water consumption, manage waste consumption, increase renewable generated energy and meter operational energy. Where we are responsible for the utility supply we will ensure that utilities are procured from renewable and sustainable
• Construction: within the context of our overall mission, limit the number of new buildings built per year and prioritise the re-purposing and re-utilising of existing facilities where possible.
• Rationalisation: Ensure that we optimise and rationalise our workplaces to minimise their impact on our carbon footprint.
• Communications: we will calculate our carbon emissions quarterly and communicate the results to our employees.
• Budget & Funding: Create a budget to fund investment in projects / initiatives / strategies that target and reduce sources of carbon emissions.
• Space Sector Impact: Consider the positive Net Zero impacts from our space sector activities in offsetting our carbon footprint. Consider investing “offset” funds in external projects that have a greater impact on reducing carbon output in favour of neutralising our own FY30 residual emissions.

5.0 Declaration and Sign Off

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

Emissions have been reported in accordance with the publishing reporting standard for Carbon Reduction Plans and the GHG Reporting Protocol corporate standard and uses the appropriate Government emission conversion factors for greenhouse gas company reporting.

Scope 1 and Scope 2 emissions have been reported in accordance with SECR requirements, and the required subset of Scope 3 emissions have been reported in accordance with the published reporting standard for Carbon Reduction Plans and the Corporate Value Chain (Scope 3) Standard.

The Carbon Reduction Plan has been reviewed and signed off by the board of directors (or equivalent management body).

Signed on behalf of Satellite Applications Catapult Limited