Lockton Environmental Report 2023-24

Lockton Companies LLP Environmental Report

2023 - 2024

Environmental responsibility report I’m delighted to share Lockton’s UK Environmental Report for the 2023 _ 2024 financial year, which highlights our ongoing progress towards a low-carbon strategy. Lockton recognises the importance of understanding the true impact generated by our business while delivering our client services across industries worldwide. Only with this insight can we set meaningful short and long-term targets to reduce our impact and encourage our suppliers to do the same. Reducing CO₂ emissions can take time, as processes and technologies outside Lockton are developed. For immediate impact, we offset all our measured CO₂e and do so to the recognised PAS 2060 standard. In doing this, we are certified carbon neutral and working with Lockton will not add to our clients’ CO₂e. doing tis we are able to advise we are certified carbon neutral. Working with Lockton will not add to our clients CO₂e.

EJ Hentenaar UK and European CEO

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ENVIRONMENTAL REPORT | LOCKTON

ENVIRONMENTAL REPORT | LOCKTON

CO₂ report Emission data and review 2023-2024 Summary CO₂e - New hybrid calculation illustrates an increase in CO₂e This report is presenting the 2023/2024 data as a stand-alone, set of CO₂e calculations as the report has changed to include a Well-to-Tank (WTT) element within the CO₂e in order to better identify the upstream supply side CO₂e. We are committed to using a new CO₂e calculation method going forward. And we are in the process of doing so. We are moving from PAS 2060 Carbon Neutrality Certification to the ISO14068-1 Certification, which is changing the methodology for reporting.

Three emission scopes are set down in the GHG protocol and are detailed below:

Scope 1: Direct emissions Occur from sources that are owned or controlled by Lockton. Examples: Fuel combustion, Gas burnt.

Scope 2: Electricity indirect emissions GHG emissions from the generation of purchased

Scope 3: Other indirect emissions

An optional reporting category for all other indirect emissions that are a consequence of our activities. These occur from sources not owned or controlled by the company. Examples: electricity transmission and distribution losses, employee business travel, waste etc.

electricity consumed by Lockton (using both location and market based approach (dual-reporting).

Overall CO₂e 2023-24 Lockton Companies

Includes WTT

Lockton Companies LLP CO₂e Measured Quantities 2023-24

2023-24

Natural Gas Company Car Refrigerants

-

8.63 0.00

Site Electricity Generation (market-based)

106.45

Emissions analysis by scope Scope 1 Emissions 6.84 tCO₂e

Flights

8,716.73

Rail Travel Taxi Travel

86.26 99.61

Employee Car Travel

245.64

Waste Paper

0.35 6.26 7.29

Site Electricity (T&D) (market-based) Total Tonnes of CO₂e (market-based) - Tonnes of CO₂e per employee - Tonnes of CO₂e per £M turnover Total Tonnes of CO₂e (location-based)

9,277.21

4.88

23.72

9,752.20

Methodology We are measuring and reporting our emissions based on a period that aligns with our financial year and using an external third party, Carbon Footprint, to assist. We are taking our raw data and using GHG protocol and Defra guidelines, and using the latest metrics from BEIS, to calculate our CO₂e. All results are then validated to ISO14064-3. Emissions totals are calculated by multiplying activity data (i.e. electricity consumption) with the appropriate emissions factor (i.e. UK electricity generation). This year includes the Well-to-Tank element within the overall calculations.

The combined Scope 1 emissions for the 2022-23 reporting year are 6.84tCO₂e. This is from fuel consumed by a single owned company vehicle. We purchased no fuel for electricity or heat generation.

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ENVIRONMENTAL REPORT | LOCKTON

ENVIRONMENTAL REPORT | LOCKTON

Scope 2 Emissions electricity consumed 106.45 tCO₂e

Scope 3 Emissions 9,169 tCO₂e

The last twelve-month period electricity consumption with our offices has resulted in emissions of 106tCO₂e. The change over previous years is in part due to us including a WTT element, but also reflects that we are subject to the CO₂e that comes from purchasing decisions made by our landlords. As tenants in buildings, we are held captive to their sub-supply to us, as we are part tenants of a larger building. ELECTRICITY CONSUMPTION PER HEAD HAS DECREASED SLIGHTLY DESPITE 40,000SQ.FT. OF ADDITIONAL SPACE IN LONDON AT 1,215KWH PER ASSOCIATE. From May 2023, we had full access to our additional floor in the St Botolph Building in London and added almost 40,000sq.ft. of office space to our UK portfolio, bringing it up to 185,587sq.ft. Whilst part of this was in use in the prior year, it was only in 2023-24 that the full use of all the additional space came on stream. We added 27% to our occupied floor space, to provide for headcount growth in the business and still reduced our consumption per head by approximately 5% over the previous year, see targets later. This will reduce as the headcount increases to fill the new space.

This year sees a radical departure from previous years regarding our reported Scope 3 CO₂e. Travel represents 9,148 of the Scope 3total of 9,169. Within the overall total, air travel is now alone representing 8,717 tonnes. The rise in part does reflect an increase in the extent of travel undertaken by our associates in delivering the substantial growth the business has undergone over the previous 12 months. A revision to include WTT in the calculation has also raised the amount reported.

Overall CO₂e assessment and commentary As per previous years, one area stands out in our CO₂e profile, that is travel. Whilst air travel represents the majority, car travel is a reasonable element and use of taxis and rail also contribute amount to our emissions as a result of this.

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ENVIRONMENTAL REPORT | LOCKTON

ENVIRONMENTAL REPORT | LOCKTON

Carbon offsetting

Continuing to step further. We are carbon neutral with verified measurement and verified offset. Lockton is focusing on removing CO₂ from what we do, and this programme will gradually improve our CO₂e profile. Until it succeeds, and particularly as technology advances to allow lower or zero carbon options for travel, we will continue with our chosen partner, Carbon Footprint, to select and use accredited offset schemes. To do this we need accurate verified measurement, which is covered earlier in this report, and then purchase carbon credits to offset all our emissions. The offset method remains unchanged from the prior year and we have again undergone PAS 2060 assessment of our programme to recognise, accredit and reinforce our Carbon Neutral credentials. We continue to be proud to say we are a carbon neutral organisation. In the future as other targets impact on our generated CO₂ the carbon neutral position will be maintained with carbon offsetting reducing as our business processes are gradually de-carbonised. Our offsetting is undertaken to internationally recognised standards and for this we use PAS 2060. We have alsorecognised that from 1st January 2025, ISO 14068-1:2023 will replace PAS 2060. Our measurement and reporting and offsetting are therefore being changed to align to this standard in future reports.

The wind power generated from the project will be displacing the electricity generated from thermal power stations feeding into the Indian grid (Indian Electricity Grid) and will be replacing the usage of diesel generators for meeting the power demand during shortage periods. Since the wind and solar power is Green House Gas (GHG) emissions free, the power generated will prevent the anthropogenic GHG emissions generated by the fossil fuel-based thermal power stations comprising coal, diesel, furnace oil, and gas. The estimation of GHG reductions by this project is limited to carbon dioxide (CO₂) only. The proposed project activity involves the installation of Wind Power Projects. The total installed capacity of the project is 60 MW, which involves the operation of Wind Turbine Generators (WTGs) in multiple states of India. The project contributes to sustainable development in the following ways:

Affordable and clean energy

Decent work and economic growth

Climate action

Technological well-being: The successful operation of project activity would lead to promotion of wind-based power generation and would encourage other entrepreneurs to participate in similar projects. The project activity will generate power using zero emissions wind-based power generation which helps to reduce GHG emissions and specific pollutants like SOx, NOx, and SPM associated with the conventional thermal power generation facilities.

Social well-being: The project helps in generating employment opportunities during the construction and operation phases. The project activity will lead to development in infrastructure in the region, like development of roads and also may promote business with improved power generation. The project is a clean technology investment in the region, which would not have taken place in the absence of the VCS benefits. The project activity will also help to reduce the demand supply gap in the state.

Environmental well-being: Wind being a renewable source of energy, it reduces the dependence on fossil fuels and conserves natural resources which are on the verge of depletion. Due to its zero emissions the project activity also helps in avoiding significant amount of GHG emissions.

CERTIFIED CARBON NEUTRAL TO PAS 2060

This year we have used one main VCS Gold Standard Project, a Wind Power Project in Madhya Pradesh, Gujarat and Kerala by D.J. Malpani.

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ENVIRONMENTAL REPORT | LOCKTON

ENVIRONMENTAL REPORT | LOCKTON

Certification: The project is VCS certified, and the Retirement Certification is recorded here for 8,977 tonnes: https://registry.verra.org/myModule/rpt/myrpt.asp?r=206&h=256204 We also have two secondary offset purchases as below: https://registry.verra.org/myModule/rpt/myrpt.asp?r=206&h=261804 Renewable Solar Power Project by Adani Green Energy Limited Project type: PRO Project Country/Area: India - 150 tons https://registry.verra.org/myModule/rpt/myrpt.asp?r=206&h=236959 Reduced Emissions from Deforestation and Degradation in Keo Seima Wildlife Sanctuary Project type: PRO Project Country/Area: Cambodia - 151 tons Total offset: 9,278 tonnes CO₂e

CONTINUED PROVISION OF AN EMPLOYEE BENEFIT TO OUR ASSOCIATES IN ASSISTING THEIR PERSONAL HOUSEHOLD CO₂ OFFSET.

This past year has been the sixth year of our voluntary employee benefit for our associates, this enables associates to join a scheme that allows them to offset their personal household CO₂. We have continued this benefits programme and retaining our link with Carbon Footprint, we have maintained our scheme whereby Lockton contributes 50% of the cost of the Carbon Offset and the associate contributes the remainder on a monthly basis. The amount of carbon to be offset is calculated by Carbon Footprint using nationally published data sources for household CO₂ generated and the cost to the associate is a simple £2.50 per month. This scheme is now embedded in our employee benefits programme. Associates are then supplied with an annual certificate confirming their participation and that the CO₂ has been offset, ; see the example opposite. Over the years that the scheme has been running, 9,500 tonnes of CO₂ have been offset under VCS projects.

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 | LOCKTON

CO₂ reduction and targets

Absolute reductions and performance reductions

The reworking of our environmental programme continues within our ESG framework, as such, we have continued to monitor and review our CO₂ using our previously stated targets, although we expect these to be restated in future years. Electricity Performance against targets Target is Scope 2 Reduction in CO₂ - 99.8% reduction in CO₂ from electrical consumption (generation, transmission and distribution, and Well-to-Tank) per associate by end of Fin Year 2026 versus 2017-18 base year. This year we are reporting 66.50kg/per head vs. our target is 27.75 kg/head by 2026. Whilst the rise is unwelcome, we believe that increased efficiency of the built estate over the next two years will see this use come down in line with our target path.

Reduce kWh per Associate – the target now being to reduce our kWh per associate by 40% over the revised period 2017-18 to 2025-2026. This year we are reporting 1,253 kWh/associate vs. last year’s 1,310 kWh/associate. This is a marginal reduction of nearly 4.5%. Performance against target As reported previously we are on target to achieve this, and we are above the overall end target at present. Transport and travel This area of our CO₂e reporting has shown a substantial increase this year. The development of an alternative calculation method has changed the numbers substantially and review of this change has indicated from our external auditors that they are in agreement with this higher number. Our CO₂e per associate related to travel is 5,410kg, of which 95.20% is related to air travel. As such, this number will now be used for the future years reports as a new baseline year and targets will be set around this. Secondary target 1/3 of current internal face to face meetings to be moved to video meetings by 2028, this will contribute towards the reduction in travel CO₂. We are expecting the development of an appropriate measurement methodology as part of the revised measurement, target and reporting for next year. Paper use We previously advised that for paper we set one reduction target and one technical target, albeit that paper in and of itself is a low tCO₂e total impact item. y An overall 30% reduction in paper use within 5 years, based on 2017-18 purchased sheets. y Alongside this we set the target that 25% of the paper we use was to come from recycled sources by 2020. As reported, we have met those targets; we set a stretched target to 2025-26.

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ENVIRONMENTAL REPORT | LOCKTON

ENVIRONMENTAL REPORT | LOCKTON

Performance against target The methodology takes all sizes of paper purchased and converts to a standard A4 sheet and then uses this as the baseline to calculate overall quantity. We continue to record this as a point of review. We are on track to meet this target.

Recycled paper. There is no change on this from previous years, working with our supplier, Banner/Complete, we have mandated all supplied paper to us should be recycled. The focus remains on reduction of the absolute quantity of paper used. Waste We remain very conscious of the need to encourage our landlords and ourselves regarding effective waste management. The social and potential pollution impact can be reduced if the quantity of waste can be lowered, and the reuse and recycling of the waste can be improved. London Waste and Disposal. We have continued to work with our landlord at the St Botolph Building and for the second year we are using this measured waste quantities for the waste leaving site. This year the advised total for the 12 months to April 2024 was The 38.221 tonnes is a substantial decrease on the previous year’s statistic of 48.60 tonnes and shows a 21% decrease and a waste per head value of 25.91 kg per associate reflecting a decrease of 34%.

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ENVIRONMENTAL REPORT | LOCKTON

ENVIRONMENTAL REPORT | LOCKTON

Additional environmental programmes We have continued existing reuse/upcycle treatment of our two prime waste streams of redundant IT equipment and surplus furniture. Recycle IT equipment We ensure accredited data wiping has taken place and allowed reuse (upcycling) by others of redundant equipment. The remainder has been broken down into spares for reuse by others. Furniture Our prime furniture supplier is Senator and we have continued to work with them to ensure replaced surplus furniture is taken by them, where we have worked with them to upcycle where possible to schools and other organisations, with the remainder going through to their UK based dismantling facility. Package movement Our supplier partner for package movement is DHL, and in conjunction with their Go Green Climate Neutral service we seek to minimise the impact of our movement of packages and equipment between offices and with clients, whether within the UK or internationally. As part of their Go Green Programme, we pay an additional amount to them for package movement to offset the carbon cost of that movement. It is also appropriate to note that DHL have their own carbon reduction programme. Pollution and plastics Key Targets - 2023 As previous reported, we continue to look to remove plastics, particularly all single use plastic from the business and identify and remove all unnecessary plastic use from the business. Our catering and cleaning contractors in London are supporting this removal of single use plastics. We have recently changed catering contractor and welcome and support their own environment programme where they are seeking B- Corp status for their entire business. With other suppliers where our relationship with them is transactional rather than through a framework as we don’t have sufficient volumes, it is proving more difficult to get them to use plastic free protection around delivered items. Our furniture supplier have removed plastics from their delivery as part of their own strategic move, a welcome bonus of working with an appropriate organisation.

Secondary targets We have reviewed these again and the status is as previously reported, and they continue to be a focus for us. y Adopt bulk delivery and dispense via refill for all cleaning and bathroom products, stopping waste bottles. Continuing, ozone system remains in use, some limited chemicals has been needed to address very small specific cleaning issues. We are looking with our supplier at further alternatives, where ozone does not achieve a satisfactory outcome. y Removal of plastic single use bags from the waste collection and cleaning process Continuing y Remove plastic based corporate and marketing products. Continued, albeit very limited over the past 12 months. y Adopt non plastic milk delivery and dispense within the offices . All London semi‐skimmed milk is now delivered in glass bottles and reused. y Maximise use of all electronic email and social media to distribute messages and information to associates. Continuing. y Maximise the use of plastic free products in all office stationery, including bamboo, wood and other products. Although alternatives were investigated the low consumption from existing stock over the year has meant progressing this to completion will now be over the next 12 months. y Client Presentations and bound folders, redesign the Lockton presentation folder and house style to remove plastics from the process whilst retaining the professional Lockton production values. Underway, purpose made folders that are plastic free, and recyclable are in use, with a continuing drive and support to associates.

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ENVIRONMENTAL REPORT | LOCKTON

ENVIRONMENTAL REPORT | LOCKTON

PAS 2060 − Environmental Targets

Environmental policy and our accreditation

PAS 2060

PAS 2060 REQUIRES THAT WE ALSO LOOK AT THE LONGER TERM AS WELL AS MEASURING THE CURRENT.

LOCKTON CONTINUES TO HOLD UKAS EXTERNALLY ACCREDITED ISO14001:2015 ENVIRONMENT MANAGEMENT SYSTEM.

PAS 2060 Carbon Reduction Plan Under the PAS certification process, we need to continue to demonstrate a continuing carbon reduction programme. The effect of COVID-19 restrictions during 2021 on our travelling necessitated re-baselining our emissions this year. We remain committed to our previous set targets in our carbon management plan. • A 33% reduction in air travel emissions related to internal company meetings by 2028, measuring from a baseline of 2023, set around a metric of tCO₂e/£turnover. • To have all electrical supplies to Lockton Companies from 100% zero carbon or renewable generation sources by 2032. • Progress on PAS 2060 Carbon Reduction Air Travel The change in methodology being adopted at present means we are having to re-baseline our reporting on this and will align new targets next year to the requirements of the ISO14068-1 measurement and reporting. Renewable Electricity The choices made by our landlord continue to influence our ability to work towards these targets, as we cannot install our own separate incoming electrical supplies in buildings where we are part tenants of a larger building. This year, means that our low carbon energy purchase percentage has dropped back to 88%.

Lockton to lead on this and be the first London Market Broker to obtain this internationally recognised environment accreditation. Extensive work is undertaken during the year to maintain and update the management systems and records and essential external verification takes place in March each year. We work with Equas as our external partner to provide the control software and advice on operation and maintenance of our systems, and with BAB Assessment as our external UKAS Audit. The Environmental Policy forms part of the Lockton ISO 14001:2015 Environment Management System and is reproduced below. Lockton Environmental Policy Lockton Companies LLP recognises that its business activities interact with the environment in a variety of ways. These activities have an impact in the key areas of: y Raw material use y Energy use y Generation of waste materials The company recognises that it has a responsibility to help protect the environment wherever it has an opportunity to do so, be a responsible neighbour and to provide a comfortable environment for its associates to work in. As such, the company is committed to: y Continual improvement in the environmental impact of its business activities y Preventing pollution wherever possible

y Complying with all relevant legal, customer, and other environmental requirements y Occupying and using its offices in a manner which minimises the consumption of energy y Improving the efficiency with which it uses office materials y Minimising the generation of waste materials and their environmental impact

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ENVIRONMENTAL REPORT | LOCKTON

ENVIRONMENTAL REPORT | LOCKTON

ISO14001:2015 Certification – Lockton Companies LLP

The company will achieve these commitments through the following means: y The implementation and maintenance of an Environmental Management System that is independently certified as compliant with ISO 14001:2015. y Employing processes that identify the aspects of the Company’s business that have an environmental impact and quantifying the significance of each aspect. y Setting objectives for reducing its environmental impact and maintaining an environmental performance improvement programme to enable them to be achieved. y Ensuring that its associates, suppliers and customers are aware of any support required by them to support the Company’s commitments and environmental objectives. y Ensuring that all electrical and electronic devices purchased must have the highest energy rating available unless there is a justifiable business case for doing otherwise. y Ensuring that all paper purchased contains at least 90% recycled content or is from a certified sustainable source. y Facilitating the re-use and recycling of all waste materials and redundant equipment generated by the company wherever it is economically viable to do so. y Training its associates in good environmental protection practices and encouraging associate involvement in environmental improvement initiatives. y Continually monitoring the environmental impact of its business activities. y This Environmental Policy is an integral part of the company’s business and must be supported by all associates as an integral part of their daily work.

Miles Bourne, Lockton Companies LLP European COO, October 2021

british-assessment.co.uk Certificate issued by Amtivo Group Limited T/A British Assessment Bureau Ltd. Certification is conditional on maintaining the required performance standards throughout the certified period of registration. Amtivo Group Limited. 30 Tower Views, Kings Hill, Kent, ME19 4UY

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ENVIRONMENTAL REPORT | LOCKTON

ENVIRONMENTAL REPORT | LOCKTON

CO2 Measurement Validation to ISO14064-3 Lockton Companies LLP Statement of verification Lockton Companies LLP and Lockton Re The St. Botolph Building

Assurance opinion Based on the results of our verification process, Carbon Footprint Ltd provides limited assurance of the GHG emissions statement, and found no evidence that the GHG emissions statement: y is not materially correct and is not a fair representation of the GHG emissions data and information; y has not been prepared in accordance with the GHG Protocol. It is our opinion that Lockton has established appropriate systems for the collection, aggregation, and analysis of quantitative data for determination of GHG emissions for the stated period and boundaries.

138 Houndsditch London, EC3A 7AG

29 November 2024

Scope Lockton Companies LLP and Lockton Re (henceforth referred to as Lockton) engaged Carbon Footprint Ltd to verify its carbon footprint assessment and supporting evidence for the period 1st May 2023 to 30th April 2024. Lockton is responsible for the activity data input into the Sustrax MX software. The responsibility of Carbon Footprint Ltd is to provide a conclusion as to whether the statements made are in accordance with the

GHG Protocol. Methodology

Finlay Dyche-Brookes, BSc (Hons) Senior Environmental Consultant

The verification was led by Finlay Dyche-Brookes, Senior Environmental Consultant, Carbon Footprint Ltd. Lockton used the Sustrax MX software to calculate its footprint. Carbon Footprint Ltd completed the review in accordance with the ‘ISO 14064 Part 3 (2019): Greenhouse Gases: Specification with guidance for the verification and validation of greenhouse gas statements’. The work provides a limited level of assurance with respect to the GHG statements made. Carbon Footprint Ltd believes that the review of the assessment and associated evidence, coupled with this subsequent report, provides a reasonable and fair basis for our conclusion. The following data was within the scope of the verification (below shows the post-audit results):

Lockton Companies LLP

Location-based tCO₂e

Market-based tCO₂e

Scope

Activity

Scope 1

Company car travel

6.84 6.84

6.84 6.84

Scope 1 Sub Total

Scope 2

Electricity consumption

442.34 442.34

92.56 92.56

Scope 2 Sub Total

Cat. 1. Purchased goods and services

6.26

6.26

Cat. 3. Fuel- and energy related activities (not included in Scope 1 or Scope 2)

148.18

22.97

Scope 3

Cat. 5. Waste generated in operation

0.35

0.35

Cat. 6. Business travel (not included in Scope 1 or Scope 2)

9,148.23 9,303.02

9,148.23 9,177.81

Scope 3 Sub Total

Total tonnes of CO2e Tonnes of CO2e per employee Tonnes of CO2e per £M turnover

5.13

4.88

24.94

23.72

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ENVIRONMENTAL REPORT | LOCKTON

ENVIRONMENTAL REPORT | LOCKTON

Certification of Carbon Neutral Operation Lockton Companies LLP

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ENVIRONMENTAL REPORT | LOCKTON

Lockton. Your partner in People & Risk

Lockton Companies LLP Authorised and regulated by the Financial Conduct Authority. A Lloyd’s broker. Registered in England & Wales at The St Botolph Building, 138 Houndsditch, London EC3A 7AG. Company No. OC353198. global.lockton.com

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