Focus Areas
We recognise our responsibility to help protect the environment and support the transitions towards a low-carbon economy. We seek to do so in three main ways:
1. Operational carbon neutrality: Minimise the environmental impact of our operations, particularly greenhouse gas (‘GHG’) emissions. Our target is to be carbon neutral across both Scope 1 and Scope 2 emissions by the end of 2026. The Group’s strategy focuses on:
> Reducing our Scope 1 and 2 GHG emissions.
> Increasing the use of renewable energy.
> Reducing overall waste and water usage.
2. Supporting our clients: Leverage our capabilities to connect clients to liquidity and data solutions, helping them advance their sustainability objectives.
> Developing and expanding markets for Renewable Energy Certificates ('RECs') and other renewables products.
> Providing insights and data-led solutions to better inform participants navigate fast moving markets.
3. Incorporating ESG into new business initiative approvals: Embed ESG considerations into the evaluation and approval process for new business initiatives, reviewed and scored through our Change Management Framework.
> ESG questions focus on emissions, gender representation, and asset class
Scope 1 and 2 – Target and Roadmap
To help meet the Net Zero ambition set by the UK government, our absolute emissions target is to be carbon neutral across both Scope 1 and Scope 2 emissions by the end of 2026.
On Scope 1 and 2, we continue to make progress with emissions reducing 27% in the year. This performance was driven by a decrease in fugitive emissions, and the consolidation of several on-premises data centres during the year.
A considerable proportion of the emissions savings from the office consolidation plan have been delivered. We expect the principal generator of future savings to come from the continuing consolidation of our data centres, and migration from on premises data centres to the cloud. These savings may be significant – up to potentially a further 15-20% reduction in Scope 1 and 2 emissions over the next two years. The savings will be split between energy efficiencies arising from migrating to the cloud, and emissions being reclassified from Scope 1 and 2 to Scope 3. We will continue to work towards reducing our Scope 1 and 2 emissions as far as possible, before purchasing certified carbon credits to offset any residual emissions.
Scope 3
In 2024, we reduced our total emissions for the Group globally, covering Scopes 1, 2 and 3, by 9% to 52,438 tCO2e.
Emissions from Purchased Goods & Services, or our supply chain, remain the most significant element of our carbon footprint. We recognise the importance of deepening our understanding of the sources of these emissions and working with our suppliers to reduce them. This year, the calculation of our Scope 3 footprint utilises Watershed’s supplier-specific emissions factors where possible. These emissions factors allow for a more precise calculation of the greenhouse gas emissions associated with a specific supplier’s products or services, rather than relying on industry or category averages.
We recognise that our core suppliers are at different stages of their reporting journeys, and we have not engaged the entirety of our supply chain. We will continue to engage with them to, a) purse a better-quality Scope 3 emissions baseline and, b) develop a deeper understanding of their plans to address their emissions. We note, however, that six of our top ten suppliers have published commitments to be net zero by 2050. Against this backdrop, we have no plans to set a Scope 3
emissions reduction target at this time and will continue to engage with our key suppliers about their net zero plans.
TCFD Disclosure
TP ICAP is committed to continued adoption and alignment with the recommendations of the Task Force on Climate-related Financial Disclosures (‘TCFD’). Our 2024 TCFD disclosure is available to view online.
Supporting clients with the low-carbon transition
As the world turns from carbon-intensive practices to more sustainable alternatives, we believe the best way we can support this shift is through delivering on our purpose and accompanying our clients on their transition journeys.
We will achieve this by leveraging TP ICAP’s capabilities to connect clients to liquidity and datasolutions, helping them advance their sustainability objectives.
> Developing and expanding markets for Renewable Energy Certificates ('RECs') and other renewables products.
> Providing insights and data-led solutions to better inform participants navigate fast moving markets.
How we disclose and report on progress
TP ICAP is committed to disclosing and reporting all relevant data and information related to our own ESG performance.
