| 1. PHL Group’s Commitment to Net Zero | |
PHL Group is committed to achieving Net Zero greenhouse gas emissions by 2050 at the latest, in line with the UK Government’s Climate Change Act 2008 (as amended) and the requirements of Procurement Policy Note 06/21 (PPN 06/21). As a supplier to the NHS, we recognise the sector’s more ambitious ambition of Net Zero for the NHS carbon footprint by 2040, and for the wider NHS carbon footprint plus, including the supply chain, by 2045.
In support of this ambition, PHL Group commits to the following targets:
- Net Zero for Scope 1 and Scope 2 emissions by 2040
- Net Zero for priority Scope 3 emissions by 2045
- An interim target of a 50% absolute reduction in Scope 1 and Scope 2 emissions by 2030, against a 2024/25 baseline
- An interim target of a 30% reduction in priority Scope 3 emissions by 2030, against the same baseline
This Carbon Reduction Plan has been developed in line with PPN 06/21 reporting requirements and the PAS 2060 specification for demonstrating carbon neutrality, and reflects our organisational values of Team First, Truly Care and Pioneering Innovation. Reducing our carbon footprint is a shared responsibility across every part of PHL Group, and one we approach with genuine care for our patients, our people and the environments in which we operate.
| 2. Baseline Emissions Footprint | |
Baseline emissions represent the reference point against which PHL Group’s Net Zero and interim reduction targets are measured. The baseline year for this Plan is 2024/25.
| Emissions Source | Baseline Year Emissions (tCO2e) |
| Scope 1 | 307.11 |
| Scope 2 | 98.30 |
| Scope 3 (priority categories, see Section 3) | 426.07 |
| Total Emissions | 831.49 |
| 3. Current Emissions Reporting |
PPN 06/21 requires reporting of Scope 1 and Scope 2 emissions, together with a selection of relevant Scope 3 categories, for the most recent 12 month reporting period. The table below will be updated annually to reflect verified emissions data for the current reporting year.
| Emissions Source | Current Year Emissions (tCO2e) |
| Scope 1 | 307.11 |
| Scope 2 | 98.30 |
| Scope 3: Business travel | 70.65 |
| Scope 3: Employee commuting | 250.46 |
| Scope 3: Purchased goods and services | – |
| Scope 3: Waste disposal | 62.54 |
| Total Emissions (Location based) | 467.95 |
| Total Emissions (Market based) | 454.69 |
| 4. Emissions Reduction Targets |
PHL Group has adopted the following reduction targets, benchmarked against the 2024/25 baseline described in Section 2. Progress against these targets will be reviewed annually by the ESG Steering Committee and reported to the Board.
| Target | Scope | Milestone | Target Date |
| 50% absolute reduction against 2024/25 baseline | Scope 1 and 2 | Interim target | 2030 |
| 30% reduction against 2024/25 baseline | Priority Scope 3 categories | Interim target | 2030 |
| Net Zero | Scope 1 and 2 | Long term target | 2040 |
| Net Zero | Priority Scope 3 categories | Long term target | 2045 |
| Net Zero (backstop, in line with PPN 06/21) | All scopes | Absolute latest date | 2050 |
In this first year of reporting for this Carbon Reduction Plan, Scope 3 Category 4 (Upstream Transportation and Distribution) and Category 9 (Downstream Transportation and Distribution) emissions have been excluded due to the complexity and limited availability of reliable data from third‑party logistics providers. To ensure robust future reporting, we continue to carry out a materiality assessment annually to determine the significance of these emissions within our overall footprint and develop an approach to incorporate these into our expanding Scope 3 inventory, in line with best practice and the expectations of PPN006. This will guide data‑collection improvements and support their inclusion in subsequent reporting years
| 5. Carbon Reduction Projects and Initiatives |
5.1 Completed and Ongoing Measures
The following environmental management measures are currently in place, or are planned for near term delivery, and are expected to contribute towards PHL Group’s emissions reduction targets.
- Establishment of a Carbon Reduction Committee, with quarterly oversight of the sustainability programme and direct reporting to the Board
- Appointment of a ESG and Sustainability Lead with a clear mandate to coordinate carbon reporting and reduction activity across the organisation
- Commissioning of an independent GHG emissions baseline assessment covering Scope 1, Scope 2 and priority Scope 3 categories
- A commitment to procure 100% renewable electricity across all PHL Group sites by 2028, prioritising Power Purchase Agreements or REGO backed tariffs
- Installation of smart metering and sub metering across primary operating sites by 2027, enabling real time energy monitoring
- Development of a Travel and Transport Policy, due by 2027, to promote low and zero emission transport options for staff
- A phased fleet electrification programme for all owned or leased vehicles
- A Waste Management Plan covering clinical, general, recyclable and hazardous waste streams, targeting zero waste to landfill for non clinical waste by 2028
- Progress towards ISO 14001:2015 certification, targeted for Q1 2028, to embed continuous improvement in environmental management
5.2 Planned Future Measures
The following measures are planned for delivery during the current and forthcoming reporting periods:
- Completion of ESOS Phase 4 energy audits and implementation of resulting high and medium priority recommendations within 18 months of audit completion
- Assessment of solar photovoltaic and other on-site renewable generation potential at owned or long leased premises by 2027
- A reduction in overall energy consumption intensity of 20% by 2030 against the 2024/25 baseline, measured in kWh per employee
- Elimination of avoidable single use plastics from operations by 2027, working with suppliers to identify alternatives
- A top 20 supplier sustainability engagement programme, cascading Carbon Reduction Plan requirements into contracts
- Exploration of formal alignment with the Science Based Targets initiative (SBTi) to independently validate reduction targets
| 6. Declaration and Sign Off | |
This Carbon Reduction Plan has been reviewed and signed off by the Executive Lead, Dr Andy Ross who is part of the Board of PHL Group, in accordance with the requirements of PPN 06/21.
| Field | Detail |
| Prepared by | Clare Chapman |
| Approved by | Dr Andy Ross, Group Medical Director |
| Date of approval | 11 / 09 / 2026 |
| Date of publication | 11 / 09/ 2026 |
| Date of next review | 10 / 09 / 2027 |
PHL Group will review and update this Carbon Reduction Plan on at least an annual basis, incorporating verified emissions data for the preceding 12 months and reporting progress against our published targets. This reflects our Truly Care value: we are committed to being transparent about both our progress and any shortcomings, and to explaining honestly where targets are not met, together with the corrective action we will take.
