Sustainable and Profitable Growth

If there is a central theme across this FY25 Annual Report, it is that Scott is forming a long-term view of both our company and the industries we serve. Within this context, ESG is best considered as an important part of that future perspective.

In FY24, we introduced our Double Materiality Matrix, a dual-perspective framework comprised of Impact and Financial Materiality. Impact Materiality (Inside-Out) evaluates the social and environmental effects of our operations and value chain, assessing scale, scope and impacts that can't be reversed. Financial Materiality (Outside-In) assesses external factors that could affect Scott’s financial performance, from the magnitude of risks to the likelihood of opportunities. 

The FY24 assessment was informed by horizon scans, surveys and interviews with customers, suppliers, employees, directors and industry bodies, refining our focus on areas most critical to both our business and our wider ecosystem. Now that we have set out our Destination 2030 business strategy, the ESG focus areas are no longer sitting on the parallel track but are woven into the execution of Destination 2030, with integration still deepening across certain streams.

30% Carbon Reduction by 2030

In FY22, which serves as the baseline year for our reduction target, Scott reported 1,811 tonnes of CO₂e from Scope 1 and 2 emissions. This year, we’ve reported Net Scope 1 and 2 GHG emissions of 1,645 tonnes CO₂e – a 8.9% decrease on FY24 and a 9.1% decrease on our FY22 Base Year levels. 

This demonstrates that while the business expanded, our absolute emissions decreased against the baseline – an early sign that decoupling growth from emissions is both possible and achievable. Contributing to the reduction in FY25 was relocating Sydney operations to a site with solar self-generation, HVAC optimisation at the Sydney site, greening of the gird in most Scott locations and fleet transition to electric vehicles. 

Meeting this 30% reduction target will require continued focus, with an annual average reduction of 3.75% each year. Our focus is on energy efficiency across facilities, adoption of renewable energy and optimisation of logistics. Just as importantly, the progress we make will align with customer expectations and investor confidence, reducing our environmental footprint while strengthening Scott’s long-term resilience. 
 

 ...while the business expanded, our absolute emissions decreased against the baseline – an early sign that decoupling growth from emissions is both possible and achievable.

Unified for Impact

ESG at Scott is not only about carbon. Our broader commitments to People, Purpose and Place extend across our workforce, customers and industries and are embedded across our Destination 2030 strategy. 

Our people are the foundation of performance and ESG reinforces that by ensuring we invest in retention, development and wellbeing. Focused training and career pathways are equipping teams with the skills needed for a digital, automated future, while our safety-first mindset and inclusive culture foster workplaces where people feel secure, valued and empowered. 

The commitment underpins the One Scott approach - of globally aligned and connected teams working across geographies and domains with a shared sense of purpose. High-Performing Teams extend this further by embedding clarity, accountability and collaboration into daily execution. Together, they enable us to innovate faster, adapt with resilience and deliver consistently for customers.

Purpose Beyond Projects

ESG strengthens our promise of putting customers first. By co-discovering opportunities, aligning on long-term capital plans and embedding shared ESG priorities into those relationships, we create enduring value that goes beyond transactions. 

Our lifecycle framework, from design to dispose, supports customers long after installation, reducing waste, extending asset life and lowering environmental impact. By 2030, more than 35% of Group revenue is expected to come from lifecycle services, directly aligning ESG outcomes with financial outcomes. When customers win, we win and their success increasingly includes ESG performance. 

Whether reducing system footprints, enabling cold-chain logistics or lowering energy consumption, our solutions are designed to help customers meet regulatory requirements, sustainability goals and operational challenges. ESG doesn’t constrain innovation at Scott; it directs it towards relevance and resilience.

Delivering Sustainable Profitable Growth

By aligning our ESG priorities with our growth enablers from a High-Performing Teams culture and One Scott systems to Leading-Edge Technology and Customer First, we are building a company that is financially resilient, socially responsible, sustainable and positioned for long-term impact. 

Destination 2030 is about more than hitting financial milestones. It is about how we get there. Embedding ESG into our strategy ensures that as we grow – toward $530m revenue – we do so in a way that protects people, empowers customers and supports a more sustainable industrial landscape. 

In this way, ESG is not an add-on. It is how Scott achieves its purpose - powering our customers and industry with transformative solutions and services. 

...as we grow toward $530m by 2030 we do so in a way that protects people, empowers customers and supports a more sustainable industrial landscape.