Sustainability Report 2021 - DCC plc
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Sustainability Report 2021
DCC is a leading international sales, marketing and support services group operating in the energy, healthcare and technology sectors. DCC is an ambitious and entrepreneurial business operating in 20 countries, supplying products and services used by millions of people every day. Building strong routes to market, driving for results, focusing on cash conversion and generating superior, sustainable returns on capital employed enable the Group to reinvest in its business, creating value for all its stakeholders. DCC is listed on the London Stock Exchange and is a constituent of the FTSE 100.
Our purpose is to
enable people and
businesses to grow
and progress.
Contents
2 Introduction from our Chief Executive
4 Our Sustainable Operations
6 Our Sustainable Growth Model
8 Measuring our Progress
10 Climate Change & Energy Transition
16 Safety & Environmental Protection
20 People & Social
24 Governance & Compliance
26 Stakeholder Engagement
30 Independent Assurance Statement
31 Additional Sustainability Information
DCC plc Sustainability Report 2021 1
Sustainability Report Introduction from our Chief Executive Building stakeholder partnerships “Our commitment to strong stakeholder relationships is reflected in our purpose, our values and our strategy.” Donal Murphy Chief Executive 2 DCC plc Sustainability Report 2021
This report covers DCC’s most recent financial We are very clear on the issues that are most We reported on these developments in our
year, from April 2020 to March 2021. important to our stakeholders and therefore Annual Report this year. However, we recognise
to our long-term sustainability. the benefits for our stakeholders in having a
During that period, DCC businesses delivered stand-alone report on our sustainability
essential energy, healthcare and technology • First, climate change and energy transition. activities. This Sustainability Report therefore
products to homes, businesses and public Our role is to help our customers reach sets out the key elements of our approach to
services, supporting them through the net zero by supplying them with renewable sustainability, with a clear focus on the issues
Covid-19 pandemic. We helped health services and lower-carbon forms of energy and that are most material to our stakeholders
to operate, kept homes warm and made by helping them become more energy and to the DCC Group’s long-term success.
working from home viable through technology. efficient. We will lead by example and have We intend to expand this report in the future
accordingly set targets to reduce our own as our sustainability programme and external
This was achieved because of the resilient carbon emissions to net zero in line with the reporting standards develop.
partnerships that DCC businesses have built Paris Agreement.
over many years with a wide range of suppliers • Second, the safety of the people we deal Over the next few years, every business will
and partners. But above all, it was made with and the communities we serve. We need to demonstrate its ability to contribute to
possible by the 13,700 people who work across ensure this by operating safely and a net zero, nature-positive world. Our purpose,
our Group. Without their commitment, none preventing pollution. values and strategy all support this evolution
of those essential products or services would • Third, the development of our people and, and we have the capacity, skills and ambition
have been delivered. I’d like to thank all my more widely, society. We contribute in this to achieve it. The last year has taught us that
colleagues for delivering such a wonderful area by providing career and other nothing is impossible. We are looking forward
performance in the most challenging development opportunities to a diverse to it.
environment we have experienced in range of people and by supporting selected
our lifetimes. community groups using our financial and
non-financial resources. Donal Murphy
Our commitment to strong stakeholder • Fourth, our commitment to high Chief Executive
relationships is not new. It is reflected in our standards of governance and compliance,
purpose as a company: to enable people which preserves our licence to operate,
and businesses to grow and progress. It is giving us the opportunity to add value
reflected in our core values of safety, integrity, to our stakeholders.
partnership and excellence. And it is also
central to our strategy, which recognises the We have identified a series of metrics, which are
importance of the development of our people, aligned to the UN Sustainable Development
of operational excellence and of innovating to Goals and to SASB and GRI reporting standards,
ensure we always meet and exceed our to measure our progress in these areas.
stakeholders’ needs.
In addition, we have enhanced the governance
This commitment to delivering long-term value of sustainability activities across the Group.
for our stakeholders has made DCC successful While sustainability activities are overseen by
over many years. As the needs and priorities the Board, the Governance and Sustainability
of our stakeholders evolve, DCC will continue Committee of the Board has been given
to innovate to enable people and businesses specific responsibility for sustainability matters.
to grow and progress. This is what makes our We have also formed an Executive Sustainability
business truly sustainable. Committee made up of senior management
to implement agreed improvements. The
Chairman of the Board chairs the Governance
and Sustainability Committee. I chair the
Executive Sustainability Committee.
DCC plc Sustainability Report 2021 3
Sustainability Report
At a Glance
Our Sustainable Operations
Energy
What we do Key stakeholders
We supply the energy needed to heat homes We ensure that our customers’ current energy Our 6,800 colleagues who work in the energy
and businesses, to power industry and to allow needs are met. But we are also working with a wide sector deliver to customers, ensure efficient
travel and transport. range of suppliers and partners to bring lower- logistics, source product from our suppliers, and
carbon forms of energy to market. Our role is to ensure our businesses operate safely, efficiently
meet our customers’ energy demands with and effectively.
lower-carbon and renewable forms of energy and
We supply the energy products used by millions of
to help our customers to become more energy
customers in ten countries in Europe, in the US and
efficient. Ultimately, we want to help all our energy
in Hong Kong and Macau.
customers get to net zero.
We cooperate with a wide range of energy
For more on our energy businesses, see the
suppliers, logistics firms and other service
Operating Reviews on pages 42 and 50 of our 2021
providers to ensure that our customers receive
Annual Report.
reliable and cost-effective energy. We partner with
producers to bring renewable energy to market.
Healthcare
What we do Key stakeholders
People are living longer and healthier lives and Our healthcare businesses support these trends Our 2,600 healthcare colleagues work in
are increasingly focused on their well-being. by providing a wide range of products and services manufacturing, product quality, sales and
to health and beauty brand owners and healthcare purchasing, and on ensuring our businesses
providers, including national health systems. operate safely, efficiently and effectively.
For more on DCC Healthcare, see the Operating DCC Health & Beauty Solutions provides
Review on page 58 of our 2021 Annual Report. outsourced manufacturing services to a broad
customer base of international nutritional and
beauty businesses. DCC Vital services more
than 30,000 customers including national health
systems, community care organisations, blue light
services, GPs and other primary care providers.
Technology
What we do Key stakeholders
Technology enriches and simplifies many We help technology suppliers access existing and We have 3,900 technology colleagues who work in
aspects of our lives. Our role is to efficiently new markets. We work with them to develop their sales and marketing, purchasing, logistics and
bring a wide range of reliable products products and services to better meet evolving ensuring our businesses operate safely, efficiently
to customers in the markets we serve. customer demand. And we help our customers and effectively.
to efficiently source the technology products
We help more than 2,400 technology companies
that they need.
sell to over 50,000 customers, including retailers,
For more on DCC Technology, see the Operating e-tailers, business users and consumers. Our
Review on page 66 of our 2021 Annual Report. operations are based in 14 countries in Europe, in
North America and in the United Arab Emirates but
we deal with suppliers and customers worldwide.
4 DCC plc Sustainability Report 2021
We operate in 20 countries, providing essential energy, healthcare and technology products
and services. Here, we outline what we do, our main stakeholders and recent steps to enhance
the sustainability of our operations.
Key Developments
We work with our suppliers, customers and We increased the amount of renewable fuel to 11% All the electricity we sold in Ireland during the
regulators to ensure that the products we sell of all road transport fuel we sold during the year. year came from renewable sources.
are safe when they are transported and when For more see the case study on page 13.
We supported inclusion and diversity by
they are used.
We entered the solar energy business in France providing unconscious bias training to 3,038
We are working on ways to ensure our own with two acquisitions. For more see the case study colleagues across our energy businesses.
operations and those of our customers reach on page 11. We increased awareness of human rights risks
net zero, in everyone’s interest. through training to 2,020 colleagues in energy.
We increased the number of fast electric chargers
For more on how we deal with our stakeholders, see on our retail network by 50%. For more see the
the Stakeholder Engagement section on page 26. case study on page 13.
We were the first to bring sustainable aviation fuel
to Denmark, in partnership with Neste and Shell.
Key Developments
We work with numerous suppliers around the world We are providing essential medical supplies, We supported inclusion and diversity by
to ensure that the raw materials and packaging we including personal protective equipment for front providing unconscious bias training to 1,016
use are safe and ethically sourced. line workers, to the national health services in the colleagues across the division. We increased
UK and Ireland as they deal with Covid-19. awareness of human rights risks through
We have close working relationships with healthcare
training to 1,427 colleagues in DCC Healthcare.
regulatory authorities, in addition to our customers We are reducing our energy needs and moving to
and suppliers, to ensure the products we sell are net zero. For instance, EuroCaps in Wales has
safe and meet applicable regulatory standards. installed two wind turbines to power its
manufacturing facilities. For more see the case
Our operations are based in the UK and the US but
study on page 15.
we work with suppliers and customers worldwide.
For more on how we deal with our stakeholders, see
the Stakeholder Engagement section on page 26.
Key Developments
We work with our suppliers, customers and We supplied essential technology, which facilitated We are reducing our resource use. Exertis UK
regulators to ensure that the products we sell businesses to operate and employees to work reduced its use of stretch wrap and pallet
are safe and made and transported ethically. remotely during the pandemic. top sheet material by 25%, saving 18 tonnes
of plastic.
For more on how we deal with our stakeholders, see We are taking steps to reduce our energy use
the Stakeholder Engagement section on page 26. and carbon emissions. For instance, 40% of We supported inclusion and diversity by
the electricity needs at Exertis UK’s National providing unconscious bias training to 1,237
Distribution Centre will soon be powered by solar colleagues across the division. We increased
energy. For more see the case study on page 14. awareness of human rights risks through
training to 1,712 colleagues in DCC Technology.
DCC plc Sustainability Report 2021 5
Sustainability Report
How we Create, Sustain and Share Value
Our Sustainable Growth Model
Our purpose, Our key resources
strategy and values and relationships
Our purpose sets out the role of DCC in People
society and provides the foundation for We are a people business. We are an inclusive and diverse,
our strategy, values, and decision-making: multinational and multicultural Group, employing over 13,700
people in 20 countries with shared values and a common
purpose. Our continued success depends on a skilled,
Our purpose is to enable people and engaged and inclusive workforce delivering the right products
businesses to grow and progress. and services to our customers, safely and on time every day.
We fulfil our purpose by applying our Customers
strategic framework: We have a broad spectrum of customers, ranging from
major corporations and governments to sole traders and
individual consumers. We are a trusted partner to over
1.5 million customers.
Market leading Operational
positions excellence
Suppliers
We partner with thousands of the world’s leading
energy, healthcare and technology companies, to deliver
a diverse range of quality products. We aim to build
Innovation Extend our long-term sustainable relationships with all our carefully
geographic footprint selected partners.
Created by Colour Block
from the Noun Project Financial
We have a strong and liquid balance sheet which enables
Development Financial us to react quickly to commercial opportunities.
of our people discipline
Infrastructure
We have robust, well-invested operating platforms, a diverse
Created by LAFS
from the Noun Project
geographical footprint across 20 countries and the capacity
and appetite to invest further in our facilities.
And by following our core values:
Safety Integrity Intellectual
For us, safety comes first Our business is built on trust The quality of our own brands, third-party brands, licences
and processes supports our operations. We encourage
a culture of innovation across the Group and constantly
challenge each business to identify and implement
innovative and effective solutions in a rapidly changing,
digitally-enabled environment.
Partnership Excellence
We are stronger together We are driven to excel
in everything we do
6 DCC plc Sustainability Report 2021
Delivering long-term, sustainable benefits to all of our stakeholders,
in keeping with our purpose, is central to our overall business model.
We are a diverse Creating value for
and resilient Group our stakeholders
Our strategic framework enables us to operate in a diverse Our purpose focuses on the value we create for the people and
range of markets and geographies. Our diversity, both in businesses we work with. Our business model generates financial and
terms of our business activities and our people, has been non-financial returns for our stakeholders. The principal financial returns
a key contributor to the Group’s strong track record of created during the year are outlined below. The remaining sections of this
sustained growth and development. Sustainability Report address in more detail our stakeholder relationships
and the non-financial value we generate for our stakeholders.
We support our businesses
Our devolved management structure enables our Suppliers and Customers Communities and the
businesses to drive innovation in their chosen markets Our businesses supply essential Environment
and to remain agile and responsive to changes in customer products and services to our Our businesses operate in a wide
needs. This is critical in ensuring local responsibility, focus and customers. We strive to support our variety of locations, working closely
autonomy. Our businesses benefit from consistent strategic suppliers and customers to improve with local service providers. This
direction and centralised functions with expertise in areas the sustainability of their businesses. enables and promotes economic
such as talent development, risk management and capital activity in our communities. We
allocation. Efficient financial and commercial management Goods and services
partner with a number of charities
of our businesses, ensuring that we grow profits organically,
manage our risks, convert profits to cash and reinvest £12.4bn (2020: £13.7bn) and encourage our people to
engage in volunteer work.
a portion of those profits, has been key to DCC’s success
Employees
for many years.
We invest in our people throughout Governments and Regulators
their careers. Our working Our taxes and the levies
To continue this success, we actively promote the
development and sharing of best practice and innovation environments are safe and inclusive, we pay enable governments
across all our businesses and divisions. and people are empowered and to develop and maintain public
enabled to develop both personally works, services and institutions.
Growth is at the core of who we are and what we do and professionally. We provide Corporate taxes
Our primary focus has always been on unlocking potential competitive rewards and benefits,
to deliver long-term sustainable growth. clearly aligned with performance, £66m (2020: £61m)
and offer opportunities for further
We drive organic growth by working in partnership with our career progression. Capital for reinvestment
stakeholders and by nurturing a culture of high performance Disciplined and selective capital
Employee payments
and entrepreneurship in our teams. This organic growth, redeployment sustains our growth
together with the cash-generative nature of our businesses,
funds ongoing investment in both our people and our
£619m (2020: £598m) model. High cash-generation
enables ongoing investment in our
operations. This is supported by disciplined and selective Investors people and existing businesses
capital redeployment for expansion and new acquisitions, We are committed to delivering together with further acquisitions,
sustaining our growth model. long-term value to our shareholders and drives both efficiencies and
and share our success through further sustainable growth.
our progressive dividend policy. Retained for reinvestment
We have an unbroken record of
dividend growth and a compound £247m (2020: £234m)
average dividend growth rate
of 13.9% over 27 years.
We have built strong long-term
relationships with our core debt
providers. Interest payments reflect
the returns to these debt providers.
Dividend to shareholders
£157m (2020: £144m)
Interest payments
£85m (2020: £95m)
DCC plc Sustainability Report 2021 7
Sustainability Report
Measuring our Progress
Developing our
Sustainability Reporting
Our purpose, strategy and values support the development of long-term stakeholder
partnerships. This makes our business truly sustainable.
Our investors and other stakeholders want • Climate Change and Energy Transition
to hear more about our sustainability. We have We committed to reduce our carbon Governance of Sustainability
agreed a set of targets and metrics to support emissions to net zero by 2050, if not We reviewed and revised our governance
this, based on a review of our own activities, to before, in line with the Paris Agreement, structures to support the Group’s
determine which non-financial issues are most with an interim reduction of 20% sustainability activities.
material for our stakeholders – our investors, by 2025. We developed internal reporting
employees, customers and communities; and structures to measure and report on First, we expanded the role of the
externally-recognised sustainability standards, progress against these targets. We hosted Nomination & Governance Committee
such as GRI and SASB. an investor presentation outlining the to include sustainability. The Committee,
important part we have to play as an led by our Chairman, has been renamed
The process identified four core sustainability enabler of the energy transition. the Governance and Sustainability
pillars for DCC: Committee. We also established a new
• Safety and Environmental Protection Executive Sustainability Committee
• Climate Change & Energy Transition We delivered good results against our led by the Chief Executive. These
• Safety & Environmental Protection safety and environmental KPIs. We also Committees oversee and support the
• People & Social put in place a new HSE Three-Year Plan development of our sustainability
• Governance & Compliance detailing our planned activities until 2024. programme.
Sustainable Growth • People and Social Each Committee will meet six times
Our strategy and business model have We introduced a new Inclusion and during the financial year ending
delivered financial and non-financial benefits for Diversity Policy and provided training 31 March 2022 and will receive detailed
all our stakeholders for many years. Our ability on unconscious bias across the Group. reports on progress on key sustainability
to generate consistent stakeholder value makes initiatives. The Board retains overall
our business highly resilient and sustainable. • Governance & Compliance responsibility for sustainability issues
Our performance during the year is testament We took steps to develop the diversity across the Group.
to this. of the Board. We introduced a new
Human Rights Policy and provided training
In this Report, we set out significant progress on the protection of human rights to over
in the following areas: 5,000 colleagues.
• Governance Our Sustainable Growth Model on page 6
We established Board and senior describes the relationship between our
management committees to oversee our sustainability programme, our stakeholders
sustainability activities. We also aligned and our business activities in more detail. For
the performance objectives of senior more detail on our stakeholders and how their
management with our updated targets interests influence our decision making, see the
and metrics described below. Stakeholder Engagement section on page 26.
• Reporting The remainder of this section covers the
We agreed targets and metrics for the following areas:
most important aspects of our operations, 1. Governance of Sustainability
aligning these to reporting frameworks 2. Development of our Reporting, including
such as GRI, SASB and the UN Sustainable alignment with reporting frameworks
Development Goals. We will use these to 3. Progress Against our Four Pillars
report on our non-financial performance
in future. We also took steps to report
in accordance with the Task Force on
Climate-Related Financial Disclosures
(TCFD) framework.
8 DCC plc Sustainability Report 2021Development of our Reporting
Following a review during the year of the issues that are most material to our stakeholders and the Group’s long-term success, we identified four
pillars for use in our future sustainability reporting. Within each of these pillars we selected relevant targets and metrics which we will use to report
in detail on our non-financial performance. These are set out in the following table. This reporting framework is aligned to the UN Sustainable
Development Goals, as well as to relevant elements of the GRI and SASB reporting standards.
For references to individual GRI and SASB standards, please refer to the Additional Sustainability Information section on page 31.
Pillar Target Metric UNSDG
We will reduce our carbon emissions Scope 1 and 2 carbon emissions.
by 20% by 2025 and to net zero
by 2050.
Climate Change
We help our customers reduce their Carbon intensity of energy sold, 7: Affordable and Clean Energy
& Energy Transition
carbon emissions bio content of fuel sold 13: Climate Action
We keep our people safe. Lost time injury frequency rate
(LTIFR) and severity rate (LTISR).
Safety & Environmental Number of serious personal injuries
to employees and contractors. 8: Decent Work and
Protection
Economic Growth
Number of API Tier 1 and Tier 2
process safety events.
We protect the environment in the Number of significant spills.
communities where we operate.
12: Responsible Consumption
and Production
We support the development of Number and rate of senior
our people. management turnover by
age group, gender, and region.
People & Social
Number of employees by age group, 8: Decent Work and
gender and region who received Economic Growth
a performance review.
Average hours of training by age
group, gender, and region.
We support inclusion and diversity. Gender balance of senior
management teams.
Number of incidents of
discrimination, the status 5: Gender Equality
of incidents reviewed and 10: Reduced Inequalities
confirmation of remediation.
Monetary loss from
employment discrimination
related legal proceedings.
We protect human rights. Human rights breaches in our
business and our supply chains.
We prevent corruption. Number of significant cases and
Governance & 12: Responsible Consumption
monetary losses related to bribery
Compliance and Production
and corruption.
We sell safe products. Product safety-related
compliance failures.
We report on a number of these metrics in the sections of the Report that follow. We will extend our reporting in future years to report against
the others.
DCC plc Sustainability Report 2021 9Sustainability Report
Measuring our Progress continued
Climate Change &
Energy Transition
The reduction of carbon emissions from our directly managed operations
is central to our climate action initiatives.
Scope 1 and 2 Carbon Emissions Energy Use Absolute Carbon Emissions by Scope
All our businesses record their energy use We used 1.45 million gigajoules of energy (000’s tonnes)
(transport fuels, heating fuels and electricity). during the year, a slight increase on the previous
This data is then converted into greenhouse year. Our LPG and Retail & Oil divisions were
gas (‘GHG’) emissions by CDP-accredited responsible for two thirds of this as they 2021 77 19
14
software. This same data is subject to a limited delivered orders to customers.
assurance audit, conducted by EY, whose 2020 78 16
assurance opinion is set out on page 30. Our transport fleet efficiency is a key focus for 2019 79 16
The majority of the Group’s emissions are our energy saving initiatives. We are constantly
2018 73 16
of carbon dioxide. In this Report, we therefore looking for efficiencies in driving, vehicle
use the term carbon to refer to all GHGs. engines, design and routing. Additional energy 2017 97 21
saving initiatives include reducing electricity and
The chart on this page shows DCC’s scope 1 heating fuels with more efficient lighting, and
and 2 carbon emissions. Our scope 1 emissions improved heating controls and equipment. cope 1 (Direct – Road transport and heating
S
total is 77,000 tonnes of carbon. None are fuels, fugitive emissions)
covered by emission limiting regulations. Carbon Emissions Reduction Target Scope 2 (Indirect – Electricity) Location-Based
Scope 2 emissions represent 20% of our In November 2020, we announced our carbon Scope 2 (Indirect – Electricity) Market-Based
carbon emissions. Compared to the previous emissions reduction targets: Refer to EY Report on page 30
year, there was an absolute increase of 2% in
carbon emissions. Covid-19 contributed to a • Net zero by 2050, if not before,
decline in emissions (using a location-based • A reduction of 20% by 2025, Energy Usage
approach) in some parts of our operations but (000’s gigajoules)
to an increase in others. Acquisitions, such as relative to a baseline year of 2019 and using the
Amerilab Technologies, NES and UPG in the US, market-based approach to calculating scope 2
increased emissions by c. 12%. emissions. These targets are consistent with 2021 1,450
the goals of the Paris Agreement.
2020 1,420
In previous Annual Reports, we have reported
scope 2 carbon emissions using a location- The 2025 target has been built into our most 2019 1,422
based approach. recent three-year planning cycle. This resulted 2018 1,352
in every business in the Group setting specific
This year we have also included scope 2 actions to achieve at least the same reduction 2017 1,687
emissions using the market-based approach in their own activities. Initiatives include
as set out in the GHG Protocol. This approach procurement of renewable electricity,
uses the relevant electricity suppliers’ actual increasing use of biofuels in own-fleet vehicles
emissions factors to calculate scope 2 and ongoing energy efficiency projects for Energy Use by Source Category
emissions, thereby taking into account the buildings and equipment. 10.7%Case study
DCC invests in solar PV clean technology in France
Recognising that solar-generated power will help customers to Solewa and Soltéa have many years of technical, regulatory and
decarbonise, DCC has recently entered the fast-growing solar industry commercial experience related to the French solar PV market. Their
in France. DCC acquired two solar photovoltaic (PV) installers, Solewa and teams design solutions for each customer’s situation: the selection and
Soltéa, based in the west and south-west of the country, during the past purchase of materials, sales and administrative processes to connect
year. These growing businesses advise on, put in place and manage solar a new installation, construction and solar PV performance management.
installations for agricultural and commercial customers looking to They focus also on long-term maintenance contracts for mid-size
optimise large roof spaces on buildings. Post-installation, the business rooftop installations. Most of their current business is with agricultural
assists the customer with the maintenance of this clean power source. customers and DCC is now well positioned to capture a material share of
Solar panels are a clean technology, producing renewable electricity on the other growing segments such as industrial and commercial buildings.
the customer’s site. The market for on-site solar installations has been In recent years, DCC has significantly expanded the energy solutions
expanding by more than 10% per annum in recent years. it provides to customers in France. Butagaz is a leading distributor
of propane to rural communities – providing communities with a
According to figures from the French Ministry of Ecological Transition, lower-carbon, clean burning, energy source. From this strong position
the country’s cumulative installed solar power has reached 11.5 GW. and following its expansion into solar, in lower carbon LPG, DCC now
This is still well below the 2030 target of 20 GW in France’s national energy offers bioLPG, renewable wood pellets, renewable electricity and
strategy. Grid operator Réseau de Transport d’Électricité (RTE) produced solar energy.
a report with six scenarios for France to reach its goal to fully decarbonise
its energy system and economy by 2050. Solar capacity would need
to expand by six times to 70 GW under the most conservative scenario.
The upside scenario is for 208 GW of solar output.
DCC plc Sustainability Report 2021 11Sustainability Report
Measuring our Progress continued
CDP Reporting The steps we are taking to support our The previous page discloses scope 1 and 2
We submit information annually to CDP on our customers in the energy transition, including emissions while scope 3 emissions are detailed
carbon emissions. Our 2020 CDP score of ‘C’ by reducing the carbon levels in the fuels that in our annual CDP report. The primary climate
was in line with previous years, above our sector we sell, will result in a reduction in the intensity related targets already in place relate to our own
average, and in line with the global average. of our scope 3 emissions in future years. emissions reduction.
Our 2021 submission will include our enhanced
sustainability governance structures and our Taskforce for Climate-Related Those targets are live as of 1 April 2021
carbon emission reduction targets as Financial Disclosures and will be reported on in subsequent years.
described above. In 2020, we completed a review of the TCFD
reporting framework to assess our current In addition to these carbon metrics,
Scope 3 Emissions alignment with its disclosure recommendations developments in the Group’s risk
Scope 3 emissions are the indirect emissions and identify actions to better integrate climate management processes are described in
resulting from business activities but not governance, strategy, risk management and the Risk Report in our 2021 Annual Report.
directly generated by them, such as the metrics and targets into our business processes.
emissions our customers generate by using
the products they buy from us. In our 2020 CDP Our CDP reporting, referred to above, is broadly
submission we provided a breakdown of our aligned with TCFD in its coverage of climate
scope 3 emissions. The most material element related metrics, governance, and disclosures.
of our scope 3 emissions relates to the use of The Additional Sustainability Information
the fuel products we sell. The second most section on page 31 maps our existing reporting
important category of our scope 3 emissions against the 11 TCFD expectations and
relates to the upstream extraction and indicates the sections of our 2021 Annual
transportation of those same fuels. These Report where further commentary on those
two categories account for around 99% of expectations can be found. We will continue to
all our scope 3 emissions. develop our reporting to ensure we can report
in future in accordance with the framework.
12 DCC plc Sustainability Report 2021Case study
HVO: delivering an 80% carbon reduction for our customers
Hydrotreated Vegetable Oil (‘HVO’) is an alternative to diesel. It produces
80% to 90% lower carbon emissions than fossil fuels. It is generally
produced from waste and residue fat. For example, used cooking oil,
waste animal fat, waste fish fat, vegetable oils and residue oils can be
used in its production.
We have been selling significant volumes of HVO in Sweden for some
time and have developed a market-share of c. 25%. Our Swedish
business has strong partnerships with suppliers, including Neste who
have developed world-leading capability in renewable liquid energy
products. Neste’s leading product Neste MY Renewable Diesel is
fossil-free, produced from only renewable raw materials.
The fuel is adapted to the Nordic climate and is used for diesel engines.
The fuel works in both light and heavy vehicles, has high ignition and
good cooling performance to temperatures as low as -30°C. The engine
needs only to have the manufacturer’s approval to switch from diesel.
HVO performs as well as, and is chemically identical to, ordinary diesel,
but produces significantly lower carbon emissions.
We sell HVO mainly to bulk customers directly into their own tanks
and we have also developed a growing network of 37 locations offering
HVO at the pump. From these sites, we can also sell to a wide array
of customers, mainly in transport, construction and municipalities,
but also into the marine diesel market.
Case study
Investing in the fast-growing electric
charging business in Norway
DCC is at the cutting edge of the energy transition in Norway, More than 1 million kWh of electricity – the equivalent of 5 million
where sales of electric vehicles (‘EV’) have been expanding over the kilometres driven – was sold from our chargers in Norway in the
past decade. Tax subsidies have incentivised the purchase of EVs, financial year to March 2021. This is sourced entirely from renewable
neutralising the price difference versus traditional internal combustion power production such as hydropower and wind. DCC aims to more
engines. More than half – 54% – of new cars sold in Norway in 2020 were than double the number of locations and chargers within the next
powered solely by electricity, while another 20% were plug-in hybrids. 12 months.
Electric cars now represent 12% of the total passenger car population
in Norway and more than 20% in the larger cities. As Norwegian drivers convert to EVs, electric chargers will gradually
replace liquid fuel pumps on our forecourts. The average charging
EVs are quickly becoming the vehicle of choice in Norwegian households time at our locations is 20-25 minutes, so customers prefer locations
given the increasing model range and vehicle size (including 4x4s) with adjacent services such as food and beverage offerings, sit-down
and the extended range resulting from improved battery technology. dining facilities and restrooms. Our sites with the market leading
‘Deli de Luca’ convenience stores are ideally positioned to meet
DCC invested in seven new locations and 27 new EV charging these consumer requirements.
units in Norway during the last year, delivering profitable cash
contribution to the business. We are pleased with the strength of
take-up and returns on invested capital are already in line with targets.
The locations of our Esso-branded retail network in Norway are
attractive to consumers and are ideal for facilitating customer apps or
in-car systems. The business has partnered with software providers
such as Recharge, leading to fast take-up and strong utilisation of
charging capability once sites are operational.
DCC plc Sustainability Report 2021 13Sustainability Report
Measuring our Progress continued
Case study
Expanding DCC LPG’s presence in the Irish
electricity market and supporting energy transition
Following the acquisition of Budget Energy, Flogas Ireland became the sixth largest supplier
of natural gas and electricity on the island of Ireland and the only supplier of carbon neutral
gas and electricity products with its innovative and award winning Green Future Gas and Green
Future Dual Fuel products.
The acquisition of Budget Energy enhances DCC LPG’s presence its customers. In October 2020, Flogas Ireland launched innovative
in the Irish electricity market and represents an important step in Green Future Gas and Green Future Dual Fuel products to the
its strategy to further develop its renewable natural gas and power residential market. These remain the only carbon neutral offerings
offering across the island of Ireland. Flogas Ireland is now the sixth in the Irish residential market and approximately 8,000 customers
largest supplier of natural gas and electricity on the island of Ireland have now contracted for these products.
with over 165,000 customers.
The Green Future products were recognised in the bonkers.ie
Flogas Ireland completed the acquisition of Budget Energy in May National Consumer Awards with an award for Best Customer
2020. Budget Energy is an independent electricity supplier operating Innovation in the Irish market.
throughout the island of Ireland, supplying approximately 90,000
residential electricity customers at the time of acquisition. Budget
Energy has a strong history of sourcing renewable energy, with
agreements in place for the purchase of electricity generated from
solar, wind and anaerobic digestion sources.
Flogas Ireland is committed to participating in, and accelerating,
the energy transition and has taken substantial steps to reduce its
own emissions as well as supplying 100% renewable electricity to
Case study
Installing solar in Exertis UK
DCC Technology is committed to minimising the impact
that its business operations have on the environment.
Having already switched external electricity supply contracts to The solar panels will provide estimated initial annual electricity savings
100% renewable sources during the summer of 2020, our Exertis UK of c. £100k in addition to revenue from exports to the grid. It is
business is taking steps to further reduce its carbon footprint by anticipated that the installation will have a life span of 25 years with
installing a solar array system on the roof of its National Distribution relatively little degradation of efficiency or performance over that
Centre (‘NDC’) in Burnley. The 6,000 square metre system will be period providing a relatively short-term payback period. Measured
capable of generating a peak output of 1,236 KWh, which based on over its lifespan, this new source of renewable energy is projected
long term local weather averages, is estimated will provide c. 40% of to result in a carbon saving in excess of 11,000 tonnes.
the annual electricity requirement for the NDC and will reduce annual
carbon emissions by c. 450 tonnes a year. It is also anticipated that
excess output generated during periods of peak production will
be exported back into the grid and will provide an additional source
of income.
14 DCC plc Sustainability Report 2021Eurocaps facility in South Wales,
powered by solar and wind
Case study
EuroCaps continues on its journey
to becoming a carbon neutral business
DCC Healthcare continues to find innovative ways to Following the success of the solar panel project and being
provide its customers with more sustainable and lower located at the top of the beautiful yet breezy Welsh valleys,
carbon solutions particularly in its manufacturing facilities the management team embarked on a project to add
that are traditionally large users of energy. wind generated electricity. Two 225kW wind turbines
were installed on the site. These generate c.500,000kWh
Within DCC Healthcare, one business, in particular, of power per year, providing a further 15% of total
has been able to deliver significant improvements in its electricity requirements.
operating model over the last few years and has reduced
its carbon footprint by 50% since 2019. EuroCaps, As the EuroCaps management team developed the designs
based in south Wales, is the European leader in softgel and plans for the recent facility extension, they included in
manufacturing, producing almost 2.5 billion oil, complex the design low voltage lighting, heat recovery and the use of
paste and vegetarian softgels last year. Over the last equipment which met the highest energy efficiency ratings.
few years, it has designed, built and commissioned In addition, the increased roof space provided the room
a facility extension which has resulted in a doubling of its to add an additional 944 solar panels. Due to advances in
manufacturing footprint and the addition of a number solar panel technology, location and elevation, these will
of new lines. Capacity will ultimately increase to in excess provide almost 10% of the electricity consumed in the
of four billion softgel capsules. expanded facility.
Over the last five years EuroCaps has completed a number Eurocaps switched to renewable sources for its remaining
of projects that have reduced energy consumption and electricity needs. In total, the use of sustainably sourced
has introduced sustainable energy solutions to its site. power has resulted in a 50% reduction in EuroCaps’ carbon
This has included the installation of voltage optimisation footprint over recent years. The introduction of renewable
across the site (ensuring that the energy drawn from the energy sources and efficiency management initiatives have
grid to power plant and machinery is the minimum required), not only delivered material benefits for the facility and a
LED lighting throughout the facility and invested in heat much-reduced carbon footprint, but have also enhanced
recovery (where excess heat is recycled and used in other EuroCaps’ relationships with its customers who value its
parts of the manufacturing process). In addition, Eurocaps commitment to sustainability.
mounted 870 solar panels on the roof of the original facility,
with a capacity to deliver 190kW, generating approximately
5% of the facility’s electricity requirements.
DCC plc Sustainability Report 2021 15Sustainability Report
Measuring our Progress continued
Safety & Environmental
Protection
Safety and the protection of the environment in the places where we operate is one of our
core values and an important element in of how we enable people and businesses to grow
and progress. In this section, we set out the key management processes we use to achieve
this and how we are performing against them.
Safety Governance In addition to business-led audit programmes, Process safety risks are managed through
Safety is one of our core values. We believe we conduct health & safety audits annually detailed risk analysis, asset management, high
that a successful approach to safety must be using the International Sustainability Rating reliability engineering controls and employee
grounded in a widespread and empowering System (‘ISRS’) audit protocol. In response to awareness training. This year we conducted a
culture of openness. This should be built on Covid-19, we successfully switched to a virtual “zero-base” process safety review for the whole
trust and should encourage every employee audit process, combining offline document LPG value-stream to identify safety assurance
and contractor to identify and raise concerns, reviews with videoconference interviews and improvement opportunities. The Process
whether about safety or any other aspect remote site inspections. Numerous external Safety Working Group also led the development
of operating responsibly. regulatory inspections of our sites and of Group guidance on the creation and
management systems provide further implementation of Permit to Work arrangements.
The Group Health & Safety Policy, which links independent assurance. In response to Covid-19, we brought our
directly to our Code of Conduct, is available process safety training for senior managers
on our website, and sets out clearly defined Covid-19 online to maintain our focus on process safety
expectations in key areas including leadership, Successful implementation of our business leadership, the understanding of risks, controls,
risk management, asset integrity, training, continuity plans meant that we minimised and monitoring systems.
and emergency preparedness. Our Code of the impact of Covid-19, and were able to
Conduct is aligned with HSE management continue to meet our customers’ needs while We use Process Safety Performance Indicators
system good practice and ISO standards. maintaining robust health & safety standards. to ensure that process safety risks continue
Several of our businesses passed regulatory to be managed appropriately and are routinely
All our businesses have a health & safety Covid-19 spot-check inspections during discussed in management review meetings at
management system in place reflecting their the year. We also adapted our governance company, divisional and Board level. This year,
specific risks. These are aligned with the processes, such as safety tours and HSE audits, there were no API-754 Tier 1 or Tier 2 process
high-level expectations in the Group Health & to the constraints imposed by the pandemic. safety incidents.
Safety Policy. Group-wide initiatives, such as
our Safety F1rst programme, Learning from Process Safety The number of Tier 3 indicators, which capture
Events processes and performance metrics Process safety management is a disciplined challenges to our safety systems, such as
support the development of a positive and framework for managing the integrity of equipment reliability and process alarm
proactive safety culture. Our Group Health & hazardous operating systems and processes activations, appear to be stable or improving.
Safety Policy expectations extend to contractor in our LPG and Retail & Oil divisions by applying (See accompanying chart.)
organisations working on our behalf or at our good design principles, engineering controls
facilities, and specific standards are defined for and operating practices. It deals with the Tier 4 indicators that measure operating
activities in hazardous process areas. Certas prevention and control of incidents involving discipline and management system
Energy, Exertis Supply Chain Services and the release of hazardous materials or energy, performance include maintenance, safety
Laleham are certified to the OHSAS18001/ such as fire or explosion during the movement inspections and emergency drills. Covid-19
ISO45001 standard. of fuel, fire within fuel vapour recovery systems, restrictions did in some cases limit our ability
loss of containment leading to the formation of to obtain specialist maintenance support,
a vapour cloud, or a hydrocarbon spill. impacting on-time work completion, but all
safety critical equipment was appropriately
managed to take account of any such delays.
(See accompanying chart.)
16 DCC plc Sustainability Report 2021Occupational Safety have a contract with a third party but work
We record all safety incidents, including under the direction and supervision of DCC.
personal injuries, product spills, road traffic Although injuries to third-party contractors
accidents and near misses, to evaluate may be recorded, they are not included
potential consequences and identify underlying in DCC performance figures.
causes, control weaknesses and learnings.
Both qualitative and quantitative HSE There were no employee or contractor fatalities
information is included in monthly reporting this year. The LTI frequency rate: the number
processes. Our objective is to continue to of lost time accidents per 200,000 hours
improve our performance towards a goal of worked, continues to fall against a background
zero harm to people or the environment, and of company growth. The LTI severity rate
our Learning from Events process is a key tool increased slightly compared to last year, largely
for sharing knowledge and driving improvement as a result of two incidents: one in the Retail &
across the Group. Oil division and one in the Healthcare division
that caused extended periods of lost time. The
Lost Time Injuries (‘LTIs’), defined as an majority of LTIs were relatively minor including
accident resulting in at least one day lost from slips, trips, and manual handling injuries such as
the date of the accident, are an important sprains and strains. The Total Recordable Injury
indicator of overall HSE performance. Injury Rate (‘TRIR’) in the year ended 31 March 2021
reporting requirements apply to all employees was 1.14.
as well as all workers, such as agency staff, who
Case study
Virtual safety tours
Covid-19 significantly restricted the ability of our leadership team This approach enabled access to areas and processes that would
to undertake normal operational safety assessments – an important normally be impossible without specific training or equipment,
part of our safety governance. providing managers with insights that might not otherwise have
been captured.
To maintain visible safety leadership, and ensure our business teams
remained focused we made the most of the available technology The ability for a relatively large audience to have meaningful
to conduct virtual site safety tours by video conference. discussions with operators, albeit remotely, provided the
opportunity to challenge existing practices and reflect
Business teams used drone footage, live and pre-recorded video, site on continuous improvement ideas.
plans and employee interviews to provide the senior management
team with an overview of their operations, occupational and process The experience has proven so positive that it will likely become
safety arrangements, and ongoing challenges. routine practice in the future.
DCC plc Sustainability Report 2021 17Sustainability Report
Measuring our Progress continued
Environmental Protection In 2021 there were a total of 798 spills of Overdue General Maintenance Tasks
We are committed to continually improving our all levels of significance across our energy
environmental performance through careful businesses – equivalent to 3.8 spills per 10,000
management of our operations. The Group deliveries. Of those, 129 were categorised 500
Environment Policy requires all businesses to above the minimum reporting level in 2021 –
68
minimise the environmental impact of their equivalent to 0.6 per 10,000 deliveries. This
98
400
operations with appropriate business specific compares favourably with 2020 when there
49
343
systems and processes to ensure compliance were 0.9 spills per 10,000 deliveries above 300
292
with regulatory requirements. Several the minimum category. In 2020, 20% of spills
278
businesses in the Group operate to were rated above the minimum risk category,
18
200
management systems that are certified and in 2021 this fell to 16%.
159
48
to the ISO 14001 standard. 100
All spills of significance are reported to
60
Spills the relevant environmental authorities and 0
We define a spill as any unplanned release to are cleared up to their exacting standards 2017 2018 2019 2020 2021
ground or the environment. All spills and near resulting in no long-term environmental impact.
misses are recorded regardless of quantity so This year, one spill required remediation. eneral maintenance tasks overdue > 30 days
G
that lessons are learnt. Spills are categorised General maintenance tasks overdue < 30 days
using a risk matrix that allows for the varying HSE Three Year Plan
nature of spills across the four divisions. This year we developed a new Three-Year HSE
Plan identifying areas for improvement around
leadership, safety culture, training, incident
investigation and reporting, among others.
Case study
Sustainability planning in Laleham
18 DCC plc Sustainability Report 2021Safety Critical Assets Failure on Test/Inspection
Case study
120 Zero-based safety review
102
Several of our LPG businesses reviewed process safety
100
91 risks associated with the end-to-end value chain of their
74
80
operations to identify any blind spots in our safety performance
62
60 assurance process.
40 Complementing our traditional Bow-Tie analysis that is largely
30
focused on activities at our fixed facilities, this review also
examined up and downstream processes such as transportation,
20
0
delivery and projects/aftersales.
2017 2018 2019 2020 2021
As a result, the project team identified new performance
indicators that will provide assurance that off-site activities with
significant hazard potential are being appropriately managed.
Routine reporting of this data will commence in FY22.
Case study
Reducing resource use in DCC Technology
• Our MTR business in the UK, part of • Exertis CapTech in the Nordics has • Exertis UK reduced stretch wrap and
Exertis UK, provides a second life to used invested in new box folding and sealing pallet top sheet material by 25% last
and unwanted mobile phones, reducing machines, reducing the amount of year, saving 18 tonnes of plastic material.
the amount of material that may cardboard used and space taken up in
otherwise end up in landfill. transport, ensuring that 80% of items
that were previously shipped in large
boxes will be shipped in a smaller box.
DCC plc Sustainability Report 2021 19Sustainability Report
Measuring our Progress continued
People & Social
Our continued success and strong growth is due to the commitment and hard work
of our people who have maintained the supply of essential products and services
to our customers and society throughout the pandemic.
We work hard to build a workforce that is as purposes. The number of roles in scope for Developing Leaders
diverse as our customers and communities. succession planning has grown considerably We strive to foster a culture of continuous
Recognising that our people are critical to over the past number of years in line with our development for our people, ensuring we have
sustaining our competitive advantage and acquisitive growth. the talent and capabilities we need, now and in
long-term success, we ensure that each the future. This year, as a result of the Covid-19
and every one has the same opportunity We strive to make talent visible and identify pandemic, in-person classroom training was
to develop and progress. career paths for people within their own not possible so we pivoted our Executive
business as well as across the Group. About Development offerings to virtual deliveries
At 31 March 2021, we employed 13,689 people: 78% of our management team positions and self-directed digital learning.
a 3% increase on the previous year. currently have internally identified successors
from within our businesses. Of those, all All of our key leadership and management
Our employee turnover rate during this financial identified critical positions have succession programmes were redesigned to be delivered
year was 20% and new joiners accounted for coverage and we have worked hard to ensure in remote live settings including the DCC
24% of our workforce. Both of these figures visibility of our internal talent opportunities. Management Essentials programme, the DCC
include our seasonal workforce, who support Finance for Non-Finance Managers programme
our businesses in periods of peak trading, Common Talent Management System and our flagship DCC Business Leadership
many of whom return year after year. We try We continue to invest in our common talent Development programme.
to limit the impact of seasonality and provide platform to help us identify internal talent and
assistance to employees and managers when ensure talent management processes are During this period, the demand for e-learning
necessary. Fair and flexible hiring and lay-off embedded consistently across the Group. significantly increased and we reviewed our
practices apply, particularly in our seasonal The platform currently supports the Learning Management System capability to
businesses. We implement the appropriate automation of succession planning and enable scalable access to quality e-learning
required processes for major operational performance management processes across ‘on the go’ support. We will continue to
changes, notice periods and change 17 geographies. As more of our businesses invest in this area to facilitate broader
management procedures. For the financial year have recognised the value of the system, access to e-learning across the Group.
ending 31 March 2022, we intend to collect data we have had a 30% increase in the number of
measuring employee turnover in line with our users in the last 12-months. At 31 March 2021, DCC Graduate Programme
overall sustainability targets. 45% of our total employee population have The DCC Graduate Programme is an integral
a presence on the platform compared to 35% part of the Group’s talent development,
Throughout the pandemic, we tried to reduce as of 31 March 2020. designed to create a pipeline of high potential,
the number of roles directly impacted by internationally mobile, early career talent. This
Covid-19 and as of 31 March 2021 there were High Performance Culture year we adapted our attraction, recruitment
no furloughed employees across the Group. In the financial year ended 31 March 2020, and onboarding processes to take place virtually,
96% of our business management population including the creation and delivery of
Talent Development Practices completed the annual performance cycle. a customised virtual assessment centre.
We have made significant progress in recent
years in developing common structures and Our performance management process DCC is a fast-paced environment and
processes for Talent Management across the includes financial and personal objectives and, graduates on our two-year programme are
Group and we continue to see the benefits where relevant, embeds key metrics related to exposed to the 70-20-10 model for learning
of that investment. sustainability. The core competencies required and development. Graduates get unrivalled
for leadership in DCC are also fully integrated on-the-job experience through placements
Talent Planning and Career Pathing into our performance management cycle. in our international operations where they
Our annual talent planning process ensures learn about the diversity of the markets and
we continue to identify and develop talent to To support and drive our high performance sectors in which we operate. The remaining
meet the future needs of our businesses and culture, we offer regular coaching and skills development is through formal training focused
offer our people the opportunity to further based training to our business management on targeted learning modules and ongoing
their careers. teams at key points during the performance mentoring and coaching. Throughout this
cycle. We will report in future on how many year, all learning provision was efficiently
All of our businesses actively engage in the of our people participated in an annual delivered remotely.
annual process and use a consistent approach performance review process.
to focus on succession planning for high impact
roles, and to identify talent for development
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