Carbon Reduction Plan
Issue Date 19.08.2026 Rev 009
Commitment to Achieving Net Zero
Stepnell Ltd is committed to achieving Net Zero emissions by 2045.
We have set targets to achieve Net Zero for Scope 1 and 2 by 2035 and to achieve Net Zero across our value chain carbon (Scope 3) by 2045.
Baseline Emissions Footprint
Baseline emissions are a record of the greenhouse gases that have been produced in the past and were produced prior to the introduction of any strategies to reduce emissions. Baseline emissions are the reference point against which emissions reduction can be measured. The data is obtained from the Streamlined Energy & Carbon Reporting Regulations (SECR) reports.
During the financial year 2022-2023, we developed and introduced new reporting processes and improved data collection to capture our emissions, notably categories 4, 5 and 7 of Scope 3. Our Scope 3 baseline year is therefore aligned to the financial year 2022-2023 (1st April 2022 – 31st March 2023). Please refer to the table below.
For ease of comparison Stepnell has selected the carbon emissions per £1 Million of turnover ratio.
Current Emissions Reporting
For ease of comparison Stepnell has selected the carbon emissions per £1 Million of turnover ratio.
Emissions Reduction Targets
Scope 1 and 2 Performance
We have successfully outperformed the Scope 1 and 2 intensity targets established in the last financial year. We achieved an intensity of 4.09 tCO₂e/£1M, representing a 76.71% reduction from our 2021–2022 baseline year.
Scope 3 Performance & Data Quality
Our Scope 3 emissions for the 2025–2026 period were 13.23 tCO₂e/£1M, marking a 42.46% reduction from our 2022–2023 baseline. Crucially, this period also marked a significant advancement in the overall completeness, rigor, and accuracy of our Scope 3 data collection and reporting mechanisms.
Accelerated Net Zero Pathways & 2030 Targets
In response to our strong performance, we have brought forward our Net Zero target timelines across all scopes and tightened our interim annual milestones. We remain firmly on track to meet these ambitious commitments.
Our projected carbon emissions intensity trajectory toward 2030 is defined as follows:
- Scope 1 & 2 Emissions: Projected to decrease further to 3.99 tCO₂e/£1M turnover by 2030, achieving an overall 77.24% reduction against our 2021–2022 baseline.
- Scope 3 Emissions (4 subset categories: upstream transportation and distribution, waste generated in operations, business travel and employee commuting): we target an emissions intensity of 10.33 tCO₂e/£1M turnover by 2030. This represents an absolute reduction of 12.68 tCO₂e/£1M turnover and a 55.11% decrease from our 2022–2023 baseline, safely accounting for our expanded and more transparent data reporting boundaries.
Progress against these targets can be seen in the graphs below:
Carbon Reduction Projects
Completed Carbon Reduction Initiatives
The following sustainability management measures and projects have been completed or implemented since the 2021-2022 baseline and will be in effect when performing the contract. The Scope 1 and 2 carbon emission reduction achieved by these schemes equate to 13.46 tCO2e/£1M, a 76.71% reduction against the 2021-2022 baseline Furthermore, the Scope 3 carbon emission reduction achieved on categories 4, 5, 6 and 7 by these schemes equate to 9.77 tCO2e/£1M, a 42.46% reduction against the 2022-2023 baseline.
Implemented carbon reduction projects include:
- Strategy & Governance
- Formalised accelerated decarbonisation Net Zero targets (Scopes 1–2 by 2035; Scopes 1–3 by 2045) aligned with the Science Based Targets initiative (SBTi) framework methodology and implemented “Dual-Track Reporting” for specific Scope 3 categories represented in the PPN 006 Carbon Reduction Plan and the SECR Report.
- A thorough review and redevelopment of the Sustainability Forum’s core objectives was undertaken and endorsed at both SLT and Board level, ensuring the Forum is strategically aligned to deliver our Carbon Reduction Plan and drive the overarching ESG Strategy for the business by uniting key leaders from across our operations.
- Embedded sustainability practices across our projects through tools such as our Project Sustainability Management Workbook.
- Developed and launched an overarching ESG Strategy to provide a clear, actionable roadmap for emissions reduction.
- Determined an approach for management of our Scope 3 data to enable performance monitoring, accuracy and setting clear boundaries for all emissions source categories.
- Verification & Certification
- Achieved independent, second-party verification of our 2023-2024 emissions data by Robinson Management Services and third-party verification by NQA of our 2023-2024, 2024-2025 and 2025-2026 emissions data to the ISO 14064-1 standard, to assure reporting integrity.
- Successfully obtained and maintained our internationally recognised management system certifications for Energy Management (ISO 50001) and Environmental Management (ISO 14001).
- Data & Systems Integrity
- Enhanced the accuracy and scope of our data collection processes by leveraging established platforms and by installing a sign-in system for each office along with a communication initiative to improve sign-in culture and behaviour.
- Strengthened data integrity by supplementing these systems with emissions data sourced directly from our supply chain, a crucial step that improves accuracy while building collaborative relationships and setting clear sustainability reporting expectations with our partners.
- Developed project energy intensity metric targets (kWh/person) and office energy intensity metric targets (kWh/person) to drive down energy use in completed projects and occupied offices.
- Operational Achievements
- Property & Energy:
- Delivered a landmark refurbishment with a significant solar PV array at our Lawford Road head office, achieving a substantial upgrade of its Energy Performance Certificate (EPC) rating from E to A.
- Advanced our commitment to clean energy by ensuring all electricity procured through our preferred supplier, E.ON, is from 100% renewable sources.
- Reduced overall power consumption from our IT estate by 70% through the virtualisation of our servers and transitioned to the carbon-neutral Google Workspace cloud environment.
- Cut gas consumption in our joinery workshop and reduced wood waste by 90% by converting offcuts into heating fuel with a new briquette machine and wood burner.
- Set standard limits for air conditioning in all managed offices.
- Fleet & Transport
- Transitioned the company car list to exclusively feature electric and hybrid vehicles
- Restructured the employee car allowance to provide a clear financial incentive for choosing low-emission personal vehicles.
- Increased the number of electric car charging points available to company car users at our offices.
- Sustainable Construction:
- Undertook a comprehensive embodied carbon assessment on a new build school project, utilising One Click LCA software to identify carbon-intensive methods and materials and inform reduction strategies.
- Updated our procurement policy to mandate that all newly purchased, fire-rated site cabins must meet the ‘Eco-Cabin’ standard for superior energy performance.
- Pioneered the use of ‘Stepnell Cube’ battery storage generator unit and promoting hybrid systems on multiple construction sites, significantly reducing diesel consumption and generator runtime.
- All sites continue to source materials from sustainable sources wherever possible, such as timber certified by the Forest Stewardship Council (FSC).
- Conducted supply chain reviews to maximise the potential for reuse and recycling, while continuing to source materials from certified sustainable sources (e.g., FSC timber).
- Won the contract to deliver a PassivHaus new build school scheme, which has resulted in significant upskilling of teams, experience in building low carbon in operation buildings and working to strict whole-life carbon targets.
- Trialed a closed-loop circular material scheme, flooring supplier collected all off-cuts for reprocessing into new products resulting in zero waste from that product on-site.
- Initiated a scheme of site waste health audits through our waste contractors SLAs to improve efficiency and overall management of waste on site.
- Property & Energy:
- Industry Leadership & Client Services
- Continued to support clients’ decarbonisation goals through our specialist subsidiary, Step Energy, which delivers bespoke renewable and energy-efficient technology solutions.
- Supported Centre for Construction Best Practice (CCBP) Sustainability Round Table on Whole Life Carbon Assessment in planning.
Emissions Reduction and Energy Efficiency Actions for Future Implementation
The following energy efficiency actions are under consideration for implementation or are in progress during the financial year 2026-2027:
- Strategy & Governance
- Back-calculate Scope 3 emissions in 2026-2027 to the baseline year following the improved Scope 3 calculation methodology verified in 2025-2026 enabling reporting of absolute Scope 3 emissions reductions going forwards.
- Develop a formal offsetting strategy to quantify and prepare for future financial liabilities.
- Develop a fleet decarbonisation plan for non-company car vehicles and plant fleet.
- Verification & Certification
- Achieve independent, third-party verification of our 2026-2027 emissions data to the ISO 14064-1 standard to assure reporting integrity.
- Maintain our internationally recognised management system certifications for Energy (ISO 50001) and Environmental (ISO 14001).
- Achieve Signatory and then Champion status against the Carbon Reduction Code to demonstrate our commitment to industry-wide climate action.
- Achieve Silver and then Gold Carbon Literacy Certification.
- Data, Analysis & Reporting
- Develop a tiered supply chain engagement strategy to improve the reporting of emissions data, enabling targeted Scope 3 emission reductions.
- Expand the use of embodied carbon assessments (One Click LCA) on a diverse range of project types to build a robust internal dataset for analysis.
- Complete alternative materials review for one SCAPE project using One Click LCA and NBS schedule to identify EPD alternatives.
- Publish a publicly available annual Sustainability Report detailing our commitments, targets and performance.
- Investigate API integration to automate supplier materials data directly into SmartWaste and progress towards SmartWaste API live for top 10% of MAT spend.
- Investigate procurement of Corporate Carbon Dashboard and tools to manage/measure Social Value (inc. SmartWaste integration).
- Operational Objectives
- Property & Business Operations:
- Standardise the utility provider for all owned offices to our preferred supplier and undertake a data verification exercise to confirm the exact renewable energy percentage for every provider used across the company.
- Investigate and potentially implement a Managed Print Service to reduce energy and paper/consumables consumption within our offices.
- Fleet and Transport:
- Develop a clear roadmap for reducing emissions across our operational fleet, focusing on viable, low-carbon alternatives.
- Sustainable Construction:
- Expand our ‘Eco-Cabin’ policy by obtaining formal EPC assessments for our owned fleet and mandating this same standard for all hired-in site cabins.
- Implement a tiered annual increase in mandated HVO use on all projects for plant/equipment across both our own operations and of our key subcontractors.
- Deploy mobile “Plug & Play” EV chargers on 3x pilot sites and progress to installing mobile EV charging on all projects >6 months.
- Baseline and set targets for avoidable waste (tonnes/100m²) across A4-A5 phases.
- Investigate opportunities to design-in recycled aggregates specifically for temporary hardstanding and crane/piling rigs and opportunities for aggregate reduction e.g. track-cell/cell-web usage.
- Property & Business Operations:
- Industry Leadership & Client Services
- Undertake a series of supplier engagement events to understand ESG maturity within the industry and support the development of our tiered supply chain engagement strategy.
- Undertake a series of external events promoting decarbonisation in the construction industry through UKREiiF and our collaboration with the CCBP.
Declaration and Sign Off
This Carbon Reduction Plan has been completed in accordance with PPN 006 and associated guidance and reporting standard for Carbon Reduction Plans.
Emissions have been reported and recorded in accordance with the published reporting standard for Carbon Reduction Plans and the GHG Reporting Protocol corporate standard4 and uses the appropriate Government emission conversion factors for greenhouse gas company reporting5.
Scope 1 and Scope 2 emissions have been reported in accordance with SECR requirements, and the required subset of Scope 3 emissions have been reported in accordance with the published reporting standard for Carbon Reduction Plans and the Greenhouse Gas Protocol Corporate Value Chain (Scope 3) Standard6.
Scopes 1, 2, and 3 emissions data has been verified to ISO 14064-1 for the 2023-2024 and 2024-2025 and 2025-2026 reporting periods.
This Carbon Reduction Plan has been reviewed and signed off by the Board of Directors.
Signed on behalf of Stepnell Ltd:
4 https://ghgprotocol.org/corporate-standard
5 https://www.gov.uk/government/collections/government-conversion-factors-for-company-reporting