GSF Car Parts ESG Report May 2025 by GSF Car Parts

GSF ESG Update May 2025

About GSF

ESG at GSF

Our Strategic Goals

Alignment with the UN Global Compact and the Sustainable Development Goals (SDGs)

Key Improvements & Milestones Achieved

In Focus: Environmental

In Focus: Social / People

In Focus: Governance

In Focus: Procurement

Our Impact

2025 Goals

Appendix – Carbon Footprint Report, Code of Ethics, Supplier Code of Conduct, ESG Tracker

ABOUT GSF CAR PARTS

GSF Car Parts – Your partner in the aftermarket

Driven to Deliver. Built to Lead.

With over 200 branches and a powerful nationwide network, GSF Car Parts is the UK’s fastest-growing motor factor, powering the aftermarket with pace, precision and purpose.

Backed by bold investment in people, technology and infrastructure, we deliver OE-quality parts, cutting-edge technical support, and unrivalled customer service that keeps our customers moving forward.

Rooted in a proud heritage dating back to the 1960s, we’ve earned the trust of independent garages, national chains and retail customers across the UK. With thousands of parts in stock, from essential service kits to specialist tools, GSF has the trade covered.

ESG AT GSF CAR PARTS

At GSF, we are unwavering in our commitment to delivering high-quality service while protecting both people and the planet.

In response to growing expectations from our investors and evolving legal responsibilities, we’ve taken decisive steps to embed ESG at the heart of our business. Over the past year, we’ve worked closely with our Board and engaged employees at every level to build a bold, strategic approach to driving positive ESG impact.

We are proud to be on this journey. While we recognise there is still more to do, we refuse to let the pursuit of perfection delay meaningful progress.

In 2024, we launched a comprehensive ESG strategy, backed by a detailed action plan and measurable KPIs. This has enabled us to:

Identify and address gaps in our policies, procedures, and performance

Take swift, impactful action across all areas of Environment, Social and Governance

The past 12 months have brought significant change and real momentum. We’ve deepened our understanding, made substantial improvements, and laid the foundations for lasting impact. We’re proud of the progress we’ve made and even more excited about what’s to come.

To celebrate our achievements and share our direction, we’ve created this report to give both internal and external stakeholders a clear view of our:

Long-term commitment to ESG

Strategic goals and roadmap for delivery

Key milestones and successes in 2024

Ambitious targets for 2025 and beyond

A MESSAGE FROM OUR CHAIRMAN & CEO

" At GSF Car Parts, we’re driving change ... We believe in a future that’s greener, safer, and fairer and we’re acting now to make it happen.

In 2024, we defined clear ESG goals that align with bold growth and real impact. From reducing our carbon footprint to engaging with communities and partners, we’re turning responsibility into opportunity We’re committed to reaching Net Zero by 2050 or sooner, and we’re building momentum through targeted action and transparent measurement. Our ambition is simple: to be the employer and supplier of choice, delivering service that accelerates progress for people and the planet."

ESG AT GSF CAR PARTS

OUR 8 STRATEGIC GOALS

KPI TRACKER – SNAPSHOT

DASHBOARD – SNAPSHOT

OUR 2024 OBJECTIVES

Environment and Carbon

People

A carbon footprint calculation for the Group inc. Scope 3 emissions

A Human Resource strategy in place for the Group

Governance

Updated Group Code of Ethics shared with all employees of the Group

A commitment and progression against our target to become Net Zero by 2050 or sooner

Training Plan for all relevant employees

ISO / Governance policies for the Group

A Responsible Procurement Policy in place for the Group

KEY IMPROVEMENTS & MILESTONES 2024

Environment

✓ Energy Efficiency Boost – LED lighting now fitted across 15 additional branches, cutting energy use and improving environmental performance.

✓ Sustainable Operations – Rolled out new waste and packaging procedures in line with the latest UK legislation, reducing environmental impact and improving compliance.

✓ Carbon Clarity Achieved – Completed our 2023 Carbon Footprint, including Scope 3 emissions, and formally set our Net Zero targets.

✓ Powering with Purpose – Renewed our commitment to clean energy through a 100% renewable electricity contract.

✓ Urban Innovation – VOK electric cargo bikes now on trial in London, reducing emissions in urban deliveries.

✓ Charging Ahead – Installed EV chargers at 15 new branches, supporting the transition to electric fleets and greener customer journeys.

Social

✓ Company-wide mandatory training successfully launched, empowering all employees with the knowledge to thrive and stay compliant.

✓ New Health & Safety Manager onboarded, driving real improvements in our safety culture, policies, and incident reporting.

✓ Employee Survey completed –their voices are already helping shape meaningful improvements across the business.

✓ Updated Code of Ethics shared with all colleagues, reinforcing our shared values and commitment to doing the right thing.

✓ New monthly HR KPI reporting introduced, shining a spotlight on performance and engagement.

✓ £11,159 for charitable causes, with an extra £2,635 matched by our generous team.

Governance

✓ ESG Leadership in Action –

Launched ESG steering group, meeting fortnightly to drive strategy, ensure momentum, and embed sustainability.

✓ Performance with Purpose –

Introduced an ESG Action Tracker and KPI framework, enabling clear visibility, ownership, and measurable progress across all ESG initiatives.

✓ Investor Transparency – Successfully submitted our Annual ESG Investor Report (March 2025), reporting on 57 key metrics while maintaining a strategic focus with 9 opt-outs.

✓ Third-Party Accountability –

Completed our EcoVadis assessment, achieving a benchmark score of 40/100 – establishing a baseline for future growth and improvement.

✓ Building Towards Certification –Kicked off Phase 1 of aligning with internationally recognised standards ISO 14001 (Environmental Management) and ISO 45001 (Occupational Health & Safety).

Procurement

✓ Policy and Accountability –Successfully implemented a robust Sustainable Procurement Policy alongside a comprehensive Due Diligence Questionnaire for all new suppliers and any spend exceeding £100K.

✓ Ethical Partnerships – Rolled out a clear and binding Supplier Code of Conduct, setting high standards for responsible business practices across our supply base.

✓ Leading by Example – Achieved 100% CSR audit coverage for all Own Brand suppliers, ensuring transparency and commitment to environmental and social responsibility.

✓ Thorough Vendor Scrutiny –Introduced a stringent Vendor Due Diligence Questionnaire for every new supplier, reinforcing our dedication to responsible sourcing from day one.

ALIGNMENT TO THE UN GLOBAL COMPACT

At GSF, we proudly align our working practices with the UN Global Compact’s 10 Principles, embedding them across our policies, procedures, daily actions, and transparent reporting.

In 2024, we elevated our commitment by launching a new Code of Ethics and rolling out mandatory Governance training to ensure every team member upholds these vital standards.

Our ESG strategy, action plan, and KPIs for 2024/25 clearly demonstrate how our operations and influence actively contribute to 8 of the 17 UN Sustainable Development Goals underlining our role as a responsible and forward-thinking leader in the sector.

ALIGNMENT TO THE UN SDG’S

Health and safety in the workplace and promoting safer vehicle repairs both contribute to this goal.

With a local presence in many communities, GSF has an opportunity to support sustainable mobility and accessibility to essential automotive services

Training staff in skills for career progression, and customers in the use of sustainable parts or responsible repair practices.

Supported by our commitment to sustainable supply chain, reducing waste, recycling parts, and promoting circular economy practices

Although the automotive sector has traditionally been maledominated, GSF has the opportunity to promote inclusivity

Led by our decarbonisation strategy to reach Net Zero by 2050 or sooner.

GSF supports employment within local economies across its network of branches and distribution centre.

Emphasizes business integrity, anti-corruption, transparency, and strong governance especially important for supplier management and ethical practices

OUR ENVIRONMENTAL COMMITMENT

At GSF Car Parts, we are committed to evolving into a truly environmentally conscious business where every strategic decision reflects our “triple bottom line” approach: people, planet, and profit.

We will drive growth and investment while taking decisive action on climate adaptation and mitigation because sustainable progress is the only way forward.

This commitment will deliver real impact:

✓ Reducing environmental harm across the communities we serve, locally and nationally

✓ Protecting and restoring vital natural resources and habitats

✓ Safeguarding our people and operations against the challenges of extreme weather, economic shifts, and social disruption

✓ Our journey is bold, our responsibility is clear and we’re proud to lead with purpose.

IN FOCUS: ENVIROMENTAL

OBJECTIVE ACHIEVED? COMMENT

To have a baseline carbon footprint and reduction plan in place which is aligned to the GHG Protocol and our target to decarbonise Scope 1 & 2 by 2030, and be net zero by 2050

Implementation, maintenance and improvement of robust Environment Management System (EMS) to support data collection, monitoring, evaluation, review and reporting of GHGs and other environmental factors

Set environmental KPIs on energy, water, waste and other areas of environmental performance

Yes

In Progress

Yes

A full cultural engagement strategy to be adopted to train staff and stakeholders on environmental sustainability In Progress

Secure ISO 140001 certification (approx. 2-year timeframe)

In Progress

GSF is working with Consultus, an external consultant specialising in Carbon Footprint Analysis and Pathway to Net Zero.

Data is being collected for annual Carbon Footprint Analysis, EcoVadis Assessment, and Investor Reporting and will be used to inform targets

KPIs have been identified through EcoVadis and Investor reporting. Quantitative/Qualitative targets need to be set for 2025

Environmental Awareness Training as part of Mandatory training to be introduced in 2025. Need to integrate ESG into the varied colleague comms.

Phase 1 of the process has started – ISO Consultant has been engaged to undertake a gap analysis and action plan for improvements ready for auditing in 2026

External endorsements, reporting and/or verification in place e.g. United Nations Sustainable Development Goals (UN SDGs), Carbon Disclosure Project (CDP), Science Based Targets Initiative (SBTi)

Remain compliant to UK Government reporting regulation

In Progress

Yes

Alignment to the UN Global Compact and identification of relevant SDGs now included in Action Tracker across all 4 of our ESG pillars

SECR & ESOS Reports submitted within deadline, and new procedures in place to cover new Waste and Packaging regs.

ENVIROMENTAL TARGETS 2024

CATEGORY SUB-CATEGORY

Utilities Engagement Behaviour –Switch Off Lights / Heating campaign Targeted reduction of 5% Monthly via utility bill & via SECR annual reporting

Emissions Fleet Vehicle Idling Targeted reduction by 15%

Tracked Monthly via Trackm8

Utilities LED Lighting Install LED in15 Greenfield branches Completed 15 branches in 2024

Utilities Electric Smart Meter Roll Out Final branches complete Q3 2024 Monthly via utility bill

Utilities Gas Smart Meter Roll Out All branches from Q4 2024 Monthly via utility bill

Emissions Fleet Diesel Reduction VOK Bike Trial

SECR annual reporting / ESG Impact Report

Emissions Company Cars Diesel / Petrol Move to salary sacrifice scheme x42 EV vehicles SECR annual reporting

Utilities / Emissions EPOD Roll Out Reduction of branch printers & delivery of paper SECR annual reporting

Utilities / Emissions Replacement heating / lighting Replace with more energy efficient model as required SECR annual reporting

GSF CAR PARTS CARBON EMISSIONS AND NET ZERO BY 2050

At GSF Car Parts, we are fully committed to cutting carbon emissions and building a resilient, future-ready business that can both adapt to and actively mitigate the impacts of climate change.

Our sustainability strategy sets a clear path: we will decarbonise our Scope 1 and 2 emissions by 2030 and achieve full Net Zero by 2050, aligning with UK government targets and global climate ambitions.

Through our TCFD framework and planned alignment with the SBTi, we are strategically prioritising resources, engaging meaningfully with stakeholders, and confidently managing climate-related risks.

We will hold ourselves accountable with regular monitoring, clear reporting, and full transparency on our progress towards Net Zero.

These ambitious goals will only be achieved by working in partnership with our most critical stakeholders—our employees, customers, suppliers, and investors— who are all essential to driving lasting, measurable impact.

OUR EMISSIONS

Our Carbon Footprint has been calculated using an external consultant who has produced a comparative Carbon Footprint Report, reduction plan and pathway to Net Zero.

Emissions have been calculated following the GHG Protocol which aligns to the Paris Agreement.

The report outlines our progress towards reducing our footprint using intensity metrics to track progress whilst the business is in growth.

GSF Car Parts has developed a roadmap and reduction plan that we can adopt to achieve our Net Zero targets, and we have already made some significant investment in our facilities, fleet management and procurement to ensure we achieve our goals.

We currently have a partial Scope 3 calculation covering business travel, waste and water, which needs to be expanded to cover more categories to ensure we capture all our emissions and give a truer reflection of how to achieve Net Zero by 2050.

Although our actual emissions have increased since 2021, our intensity metric has decreased. This means that GSF is demonstrating decoupling a key indicator of sustainable growth.

GSF's Key actions towards decarbonisation:

1. Collected and monitored GHG data

2. Integrated decarbonisation into core operational decisions

3. Developed an Environmental Policy inc. carbon management

4. Implemented actions within our Reduction Plan

CASE STUDIES

VOK Bike Trial (London)

In 2024, GSF Car Parts launched a trial of VOK electric cargo bikes at its London branches to explore low-carbon delivery alternatives. The initiative aimed to reduce urban transport emissions while improving operational efficiency in congested areas. Early results showed a measurable decrease in last-mile delivery emissions and reduced reliance on vans. Beyond environmental impact, employees reported improved wellbeing through increased physical activity and reduced stress associated with traffic. The VOK trial highlights how sustainable transport solutions can deliver dual benefits supporting GSF’s Net Zero targets while enhancing employee health and satisfaction in daily operations.

Cutting Carbon with LEDs and Smart Meters

As part of its Net Zero pathway, GSF Car Parts implemented a new rollout of LED lighting and smart meters across its branch network in 2024. The initiative was driven by the company’s targets to reduce operational energy consumption and carbon emissions in line with its science-based climate goals.

Energy-efficient LEDs were installed in 15 new branches, which will lead to a significant reduction in electricity usage compared to older branches in the network. At the same time, smart meters were installed to provide real-time visibility of energy consumption, helping branch managers monitor patterns and identify saving opportunities.

The results were immediate:

Annual kWh saved 185,299

Annual carbon savings of over 39 tonnes of CO₂e

Enhanced energy reporting accuracy to support Scope 2 emissions tracking The initiative forms a cornerstone of GSF’s decarbonisation strategy for achieving Net zero Scope 1 and 2 emissions by 2030.

“This investment is a practical step towards decarbonizing our operations and empowering local teams with the data to drive change.” Shaun Kelly, Operations Director, GSF Car Parts

Transforming Distribution Through a New National Distribution Centre (NDC)

GSF Car Parts has launched a state-of-the-art National Distribution Centre (NDC), enabling 96% of stock to be delivered overnight to branches. This shift enhances product availability, streamlines logistics, and reduces administrative load across the network.

The NDC supports efficient reverse logistics and warranty processing, improving overall service delivery. Daily replenishment from a central location replaces a fragmented supplier model, significantly boosting operational efficiency.

ESG Impact Highlights:

• Energy Efficiency: Closure of two older, non-efficient distribution sites reduces utility usage and carbon emissions. Currently in talks with our landlord on feasibility of installing solar panels

• Smart Infrastructure: The new NDC is equipped with a Building Management System (BMS), improving utility control and reducing CO₂ output

• Scope 3 Emissions Reduction: Fewer external supplier deliveries to 185 branches and decreased interbranch transport (IBT) thanks to centralized stock delivery

• Responsible Procurement: Centralized sourcing enhances supply chain transparency and aligns with our ESG goals.

This strategic investment positions GSF as a stronger national player while advancing our environmental and operational commitments.

IN FOCUS: SOCIAL / PEOPLE

Empowering Our People, Enriching Our Communities

At GSF, we aim to be the aftermarket’s employer of choice, offering outstanding rewards, clear progression, and a safe, healthy workplace.

We’re a dynamic, national business built on collaboration, communication and innovation. Our strong customer reputation is powered by a high-performing, motivated workforce driven by teamwork and continuous improvement.

As we grow, we stay in tune with the needs of our people, customers and communities, embracing bold ideas that drive shared success and help society and the environment thrive, even in the toughest times.

GSF IN COMMUNITIES

Supporting Communities and Global ESG Challenges

The automotive retail industry has a vital role in addressing global ESG (Environmental, Social, and Governance) challenges and building community resilience. Supporting charities, schools, colleges, and good causes not only strengthens local communities but also helps develop future talent and promote environmental awareness.

At GSF Car Parts, we believe in empowering our people to make a difference. We support employee-led fundraising and volunteering by offering volunteer days, free resources and match funding of up to £300 per project. This enables our teams to multiply their impact and contribute meaningfully to causes they care about.

Partnering with education and community organisations helps bridge skills gaps, encourages inclusion, and builds stronger, more sustainable communities. These efforts also foster team spirit and a culture of social responsibility across our network.

Through meaningful local action, we contribute to the sustainable development goals and reinforce our commitment to responsible, community-focused business.

£11,159 raised across our network of branches via our charity "round up" option on card payments

Up to £300 match funding available for individual employee fundraising projects

3 school / college events attended to support careers and skills in the automotive retail industry

IN FOCUS: SOCIAL / PEOPLE

Our Goals

o Position GSF as an employer of choice, attracting the best talent to drive our success.

o Build a vibrant, inclusive culture that reflects society and harnesses the full breadth of skills and experience.

o Create real opportunities for our people to contribute, collaborate and grow, fuelling innovation and strengthening retention.

o Champion physical and mental wellbeing, keeping our teams safe, supported and proud to be part of Team GSF!

o Connect our people to environmental and social causes, building resilience, reducing risk, and ensuring everyone benefits from our collective success.

IN FOCUS: SOCIAL / PEOPLE

Objective

Undertake data collection, benchmarking and gap analysis around the 5 identified themes within our HR Strategy

Develop strategic goals, KPIs, action plan, monitoring, evaluation and reporting processes under each theme within the HR Strategy

Yes

Engage employees in awareness, education and training on existing and new HR/People projects

Yes

Maintain existing standards and assessments, and/or work towards new accreditations / endorsements (where identified) In Progress

Monthly data collection is taking place, with regular monitoring against progress under the People pillar

People Team has developed an action plan with associated KPIs. KPIs are being reported monthly, with additional KPIs added for our annual Investors Report and EcoVadis Assessment.

Information shared/collected via the Employee Survey, Town Halls and Annual Manager's Conference. All employees receive regular internal comms through our Pit Stop, Pit Wall, I Love Mondays and weekly Chairman's Update.

People Team have supported with providing documents and data for Investor Reporting and EcoVadis assessment.

Phase 1 of securing IS045001 (H&S) is currently underway. Explore other standards such as Great Place to Work, Investors In People, or Thrive at Work

Identify and establish external partnerships that build on local connections or global initiatives

Yes

New educational programme established offering local employees the opportunity to support careers fairs in schools and colleges. Colleagues have been out to schools to give talks on future opportunities available within GSF.

GSF continues to match fund - donating £2635 in 2024.

PEOPLE TARGETS 2024

CASE STUDIES

Case Study: Looking after our People

At GSF, our people are our greatest strength, and we are committed to cultivating a progressive, inclusive culture where every employee can thrive.

Through initiatives like our weekly staff communications, employee surveys, and open town halls, we empower voices at every level. Our flattened structure and regular engagement via retreats, conferences, and podcasts foster innovation and connection.

We prioritise wellbeing with a “safety first” mindset, supporting mental and physical health through clear policies and procedures. Our longstanding partnership with the charity BEN, allows us to signpost people to exceptional resources and support at a time when they need it most.

By creating meaningful growth opportunities and championing employee empowerment, GSF continues to attract and retain top talent, driving longterm success in the automotive sector.

Supporting Charitable Causes

GSF Car Parts is proud to support local and national charities through a variety of initiatives that make giving back part of our everyday culture. We offer match funding of up to £300 per project to support employee-led fundraising, encourage volunteering across the business, and regularly provide donations of goods or equipment to community causes.

In addition, in 2024 we introduced our PDQ machine “round ups” at point of sale make it easy for customers to contribute to selected charities, helping us amplify our collective impact.

Our branches have also been involved in supporting local food banks as well as giving away Easter eggs.

Empowering Our People Through Training and Development

At GSF Car Parts, we’re committed to creating a workplace where people feel valued, supported, and inspired to grow. In 2024, we strengthened our approach to talent development by introducing clearer progression pathways and expanding access to rolespecific skills training across the business.

A major milestone was the launch of Level 2, 3, and 5 Management Courses, helping us develop future leaders at every stage of their careers. These initiatives have improved retention, boosted employee engagement, and fostered a culture of collaboration and innovation.

By investing in our people, we’re not only supporting individual growth we’re building a stronger, more resilient business with a shared sense of purpose and belonging.

IN FOCUS: GOVERNANCE

At GSF we are committed to adhering to the highest levels of legal requirement, moral principles and values across the business. This involves acting with honesty, integrity and fairness in all business interactions, avoiding any form of fraud, bribery and corruption, anti-competitive behaviour, or exploitation of human rights.

Annual Reporting to Investors

ESG Committee and Board oversight

Updated Code of Ethics and introduction of a new Supplier Code of Conduct

Zero Tolerance to Anti-bribery, Corupution, Fraud and Money Laundering

MEET THE ESG COMMITTEE

Martin Gray

Chief People Officer

Sam Johns

Head of Indirect Purchasing

Simon Lane

Head of People

Rupa Bhojani

Head of Central Operations

Shaun Kelly

Operations Director

Alison Phillips

ESG Consultant - Kindred CSR

IN FOCUS: GOVERNANCE

Objective

Achieved?

Establish strong values and culture that define and embed the expected ethical and environmental behaviour of our employees within GSF Car Parts. In Progress

Implement new mandatory training & Code of Ethics that cover Anti Bribery & Corruption, Information Security, Modern Slavery, Environmental Awareness. In Progress

Remain up to date with relevant laws and requirements and update Policies, SOPs as required. In Progress

Comment

Updated Code of Ethics was implemented within the business

Set Governance related KPIs and regular reporting systems that cover mandatory ethical topics

Manage the ongoing ESG risk and reputation of GSF Car Parts through robust Risk Assessments, Policies and SOPs

Yes

Gain ISO standards: 45001 (H&S), 27001 (Information Security), 14001 (Environment), 20400 (Sustainable Procurement – Guidance only) In Progress

Align to global standards, endorsements or initiatives such as UN Sustainable Development Goals (SDGs), Science Based Targets initiative (SBTi), Carbon Disclosure Project (CDP) etc.

Yes

Mandatory Training for Code of Ethics and Information Security implemented.

GSF is compliant with updates to all laws and regulations regularly, and adapting processes to fit requirements. Any litigation is being reported and monitored by the Board and reported annually to Investors.

KPIs have been identified through the annual investor report as well as Ecovadis assessment. ES\G committee has been established, and working with the CFO, CEO and Chairman and others to oversee Governance and collate data required for reporting.

Risk is being managed within departments and through the business continuity plan. A TCFD Risk report was conducted in May 2204 which needs an adaptation plan to reduce further risk to the business.

Phase 1 for achieving ISO accreditations for 14001 and 45001 is currently underway, identifying gaps and actions required for successful auditing (phase 2)

GSF has aligned to the UN Global compact "10 Principles" and identified the key UNSDGs associated to the business operations

GOVERNANCE TARGETS 2024

Category Sub-Category Target

Culture and Values Code of Ethics

Implement a Code of Ethics and mandatory training related to it

Establish strong values and culture that define and embed the expected ethical and environmental behaviour of our employees within GSF Car Parts.

Reporting

EcoVadis and Epiris

Internal

Culture and Values Training

Risk and Resilience Reporting

Risk and Resilience Accreditations

Risk and Resilience Management

Legal Compliance Policies and Procedures

Identify and implement Ethical mandatory training modules that can be integrated into the current LMS

Set Governance related KPIs and regular reporting systems that cover mandatory ethical topics

ISO 45001 implementation plan in place

Manage the ongoing ESG risk and reputation of GSF Car Parts through robust Risk Assessments, Policies and SOPs

EcoVadis and Epiris

Remain up to date with relevant laws and requirements and update Policies, SOPs and reporting as required Epiris

CASE STUDIES

Embedding ESG into GSF Car Parts’ Business Culture

In 2024, GSF Car Parts introduced a new formal ESG framework establishing a dedicated ESG Committee, Strategy, Policy, Action Plan, and KPI reporting to customers, Board and investors. Actions have included a voluntary resubmission to EcoVadis (third-party assessment), and the implementation of a new Code of Ethics and associated mandatory training. This has increased awareness within the business, strengthening our commitments to anti-bribery and corruption, modern slavery and whistleblowing.

The key highlight is the success of how quickly ESG is becoming embedded beyond compliance – driving sharper and more informed decision-making, innovation and cultural change.

As we enter our second year of this more formalised approach, we are building on strong foundations with clear objectives to mitigate risks, maximise opportunities, and deliver long-term sustainable success.

Strengthening ESG Data for Investors and EcoVadis at GSF Car Parts

In 2024, GSF Car Parts recognized the need for robust ESG data to meet the expectations of both institutional investors and third-party assessors like EcoVadis. Investors increasingly required performance-based KPIs to assess risk and value, while GSF voluntarily participated in the EcoVadis assessment to benchmark practices and identify areas for improvement.

Historically, GSF’s ESG data was fragmented and inconsistent, limiting the effectiveness of both investor disclosures and third-party evaluations. In response, GSF implemented a centralized ESG data management tracker and standardized KPIs across all ESG domains.

By early 2025, this effort resulted in:

• Enhanced investor reporting with auditable, consistent ESG KPIs

• Completion of GSF’s first EcoVadis assessment, providing a structured roadmap for improvement

• More frequent tracking and reporting of data across functions allowing Senior Management and the Board to act quickly on actions associated to improvement, non-compliance or disruption to the business.

“Collecting and reporting ESG KPIs isn’t just about compliance. It’s about trust, improvement, and long-term value.” Steve Horne, CEO, GSF Car Parts

IN FOCUS: PROCUREMENT

At GSF, we are embedding responsible procurement at the heart of our operations and across our entire value chain. It’s a critical part of our journey to Net Zero, our commitment to human rights, and our drive to build a diverse, inclusive supply network that strengthens both local and global communities.

In 2024, we took decisive action, launching a new Responsible Procurement Policy, a robust supplier questionnaire, and a clear Supplier Code of Conduct.

These tools hold our partners to the same high ethical, environmental and social standards we set for ourselves, while actively encouraging support for under-represented suppliers and communities.

Through this approach, we’re building resilient partnerships, championing transparency and accountability, and helping shape a more sustainable future for our industry.

IN FOCUS: PROCUREMENT

Objective

Develop and implement a Sustainable Procurement Roadmap that actively engages suppliers in aligning with GSF’s responsible procurement commitments and long-term ESG goals.

Achieved? Comment

Yes

The Roadmap was developed as part of GSF's ESG strategy for 204/25 and has been implemented within the business

Conduct a comprehensive supply chain risk analysis and assessment to prioritize supplier engagement based on sustainability impact, risk exposure, and strategic importance.

Roll out GSF’s new Sustainable Procurement Policy by distributing the updated Supplier Code of Conduct and Supplier Questionnaire to our most significant suppliers, reinforcing expectations and promoting alignment across the value chain

Complete a re-assessment through EcoVadis, showcasing GSF’s commitment to being a responsible and transparent supplier. The outcomes of this assessment will inform the 2025/26 strategy and action plan, with results made available to investors and customers as required.

Yes

Direct and Indirect Suppliers have been identified for engagement with the new sustainable procurement policies and procedures

Yes

Supplier Code of Conduct and Questionnaire was distributed in January/February 2025 and responses collated

Yes

EcoVadis Assessment was submitted in October 2024, with a baseline result of 40/100 (no medal). The improvement plan will be used to inform the 2025/26 action tracker and improve the score for 2025's re-assessment.

SUSTAINABLE PROCUREMENT TARGETS 2024

Governance Policies and Procedures

Governance Third Party Assessment

Governance Reporting

Engaging Suppliers Policies and Procedures

Engaging Suppliers Monitoring and Improvement

Sustainable Procurement Policy in place by July 2024 EcoVadis and Epiris

Submit EcoVadis Assessment by October 2024 (result issued in December 2024) Internal

Sustainable Procurement information to be included in investor annual report in March 2025

Supplier Code of Conduct and Questionnaire distributed to identified Suppliers by December 2024

EcoVadis and Epiris

Use EcoVadis Platform to check if any of our existing suppliers have an EcoVadis rating and record their scores Internal

CASE STUDIES

Auditing “Own Brand” Suppliers – Upholding Standards and Ensuring Accountability

GSF’s “own brand” products represent a core offering within our portfolio and directly influence our brand reputation and customer trust. Ensuring that these products are sourced ethically and sustainably is paramount. Without full visibility into “own brand” supplier operations, there was a risk of misalignment with GSF’s values and commitments, particularly around human rights, environmental performance, and labour standards. A lack of structured oversight also limited our ability to ensure that suppliers were complying with our Responsible Procurement Policy.

To address this, GSF has mandated 100% audit coverage of all “own brand” suppliers, regardless of location or size. The audits, conducted through a combination of third-party assessments and internal reviews, are designed to:

• Evaluate adherence to our Supplier Code of Conduct.

• Identify risks related to human rights abuses, environmental violations, and labour law non-compliance.

• Provide a basis for supplier improvement plans and, where needed, corrective actions.

This rigorous auditing approach has provided several benefits:

• Risk Mitigation: GSF can proactively address potential issues before they escalate into reputational or operational risks.

• Continuous Improvement: Audits have led to measurable supplier improvements, including better waste management, enhanced worker safety, and fair labor practices.

• Transparency & Trust: Demonstrating due diligence has strengthened trust with customers and stakeholders, reinforcing GSF’s commitment to responsible sourcing.

By ensuring that every “own brand” supplier is audited, GSF sets a high bar for accountability and leadership in the industry, reaffirming our role as a responsible and transparent business partner.

Building Resilience and Value through Sustainable Procurement

In 2024, GSF recognised the growing importance of aligning procurement practices with global sustainability trends and internal ESG commitments. To support our Pathway to Net Zero, protect human rights, and drive inclusive economic growth, we undertook a strategic transformation of our procurement approach.

Our procurement processes needed to evolve beyond traditional cost and efficiency metrics. Without structured sustainability integration, we faced challenges in evaluating supplier impact on key areas such as environmental performance, social responsibility, and supply chain diversity.

GSF embedded sustainability criteria across the supplier lifecycle, from onboarding to performance evaluation. Key actions included:

• Introducing a Responsible Procurement Questionnaire to capture environmental, social, and governance (ESG) metrics, enabling deeper visibility into supplier practices.

• Implementing a new Supplier Code of Conduct to ensure that our suppliers uphold the same high ethical, social, and environmental standards we expect internally.

• Baselining supplier engagement and improvement through newly established Sustainable Procurement KPIs, allowing us to track progress, identify gaps, and drive continuous improvement across the supply chain.

By operationalizing these initiatives, GSF has significantly strengthened its ability to manage supply chain risks, foster ethical business practices, and contribute to broader sustainability goals. This approach has laid a strong foundation for resilient, transparent, and value-driven supplier relationships that support both local and global impact.

OUR 2024 IMPACT

People & Culture

✓ 2,969 Average number of FTE

✓ 35.16% Annual staff turnover

✓ 1.08 Average upskilling hours per employee

✓ 68% Staff completed mandatory training

✓ 21% Employee survey response rate

✓ 3 School or college events attended

Environment & Sustainability

✓ -0.4% Carbon emissions from 2023 to 2024 (tCO2e)

✓ -36.8% Carbon Intensity (tCO2e / £m turnover) from baseline FY21

✓ +4.7% carbon emissions since baseline year FY21

✓ 15 additional branches fitted with LEDs

✓ £11,159 + £2,635 raised and matched for charitable causes

Compliance/Security

✓ 0 Major info security incidents

✓ 1 Whistleblowing hotline report

✓ 53% of suppliers >£100K signed Code of Conduct

✓ 100% 'own brand' suppliers audited in last 3 years

✓ 23 non-ICO reportable incidents in 2023. No data yet for 2024

Equity & Inclusion

✓ 4% 2024 Gender Pay Gap (mean)

✓ 30+ colleagues on the electric vehicle salary sacrifice scheme

✓ 328.5 Days lost due to injuries/illness/fatalities

2969 Average number of FTE 35.16% Annual staff turnover

4% 2024 Gender Pay Gap (mean)

1.08 Average upskilling hours per Employee 53% Of suppliers >£100K signed our Supplier Code of Conduct 100% Of "own brand" suppliers audited within the last 3 years

OUR 2024 IMPACT

328.5 Days lost due to injuries, accidents, fatalities, and illness 21% Response rate to employee survey

Number of major information security incidents reported

15 Additional branches fitted with LEDs £11,159 + £2,635 in employee match funding. Raised for charitable causes 3 School or college events attended 68% Staff completed mandatory training

30+

People on the electric vehicle (EV) salary sacrifice scheme

-0.4% In carbon emissions from 2023 (tCO2e) -36.8% Carbon intensity from baseline FY21 (tCO2e / £million turnover)

1 Number of reports to the whistleblowing hotline

23 non-ICO reportable incidents in 2023, No data for 2024. +4.7% Total carbon emissions from Baseline FY21

OUR GOALS FOR 2025

In 2025, we will continue to lead with action and accountability:

o Expand and strengthen our Scope 3 emissions reporting by including all relevant high-impact categories, giving us the clarity and confidence to align with Science-Based Targets (SBTi).

o Amplify communication across our business ensuring every colleague and stakeholder understands our Carbon Footprint and how we’re decarbonizing our operations.

o Embed climate risk into our core planning by integrating insights from our May 2024 TCFD Report directly into our business continuity and resilience strategies.

o Accelerate investment in carbon reduction delivering on our roadmap and advancing feasibility assessments for Solar PV installations across our sites.

o Uphold our commitment to 100% renewable energy no compromise, no backpedalling.

o Begin CDP reporting to increase transparency and benchmark our progress against global standards.

o Launch Environmental Awareness training and drive culture change through targeted communications that empower colleagues to take ownership of our sustainability journey.

o Advance our sustainable procurement practices to capture precise emissions data from suppliers and promote the use of lower-carbon products and services across our value chain.

o Establish ESG as a core commercial lever, transforming it from a compliance requirement into a core commercail enabler that drives growth, innovation, and competitive advantage! (See next slides)

SCOPE POTENTIAL TO DEVELOP ESG INTO A CORE COMMERCIAL LEVER

o Green Parts & Packaging

Sell remanufactured or eco-friendly parts. Switch to recyclable or returnable packaging.

→ Win fleet and NA business, charge a premium, reduce disposal costs.

o ESG-Friendly Supplier Reputation

Track emissions, offer compliance reports, and improve last-mile logistics.

→ Stand out in tenders, win trust, and become the low-risk supplier.

o Smarter Fleet & Warehouse Ops

Use electric vans, install solar panels, optimise routing with tech.

→ Lower OPEX, unlock grants, access green finance.

o ESG-as-a-Service for Garages

Offer tools, data, and compliance support to help customers hit their own ESG goals.

→ Build recurring revenue, strengthen loyalty, and create a defensible service moat.

o Public & Large Private Sector Contracts

Build ESG into bids for public sector, council fleets, and EV infrastructure work.

→ Win larger contracts, increase margins, move ahead of slower rivals.

o GSF EV Parts Programme

→ Over 1.3k pure EV SKUs offered to customers – with more to come

SCOPE POTENTIAL TO DEVELOP ESG INTO A CORE COMMERCIAL LEVER

o Influence Tenders Early

Get involved before RFPs go out. Work with fleets and procurement teams to shape scoring around what we already offer; like recycled parts, emissions tracking, or packaging reuse.

o Publicly Highlight ESG Wins

Use case studies and metrics (e.g. “92% recycled packaging in 2024”) in tenders, online, and in sales materials. Subtly call out those who aren’t keeping up.

o Make ESG the Barrier to Entry

Include ESG dashboards, certificates, and data as part of every trade account. Turn it into a customer compliance tool: “We’ll help you hit your targets so you can win work.” If a competitor wants that account, they’ll need to replicate the whole platform.

o Use ESG to Attract Talent, Partners & Investment

Position ourselves as a clean, smart supply chain operator, not just a distributor. It’s what younger talent, green funds, and large corporates want to hear. It builds goodwill, opens up new capital routes, and makes us a business, people want to work with.

o Accelerate M&A with ESG

Target smaller players with weak ESG profiles: dirty fleets, non-compliant packaging, no traceability. Acquire, clean up, integrate, and then win bigger contracts on the back of it.

o Bake ESG into Sales Conversations

– “Our packaging’s already compliant, no surprises down the line.” “We help you win tenders, not just supply you.”

– “Need an emissions summary for your next bid? We’ve got it.” “We’re already where the industry’s going. Join us.”

o Build Strategic ESG Partnerships

Partner with battery recyclers, EV conversion businesses, low-emission transport groups. Joint venture or referral schemes.

OUR OBJECTIVES / TARGETS FOR 2025

Pillar Goal

Environment / Sustainability

Achieve Net Zero by 2050: Operate as an environmentally responsible business committed to achieving Net Zero emissions by 2050, while enhancing biodiversity and safeguarding ecosystems.

o Objective

o Calculate annual carbon emissions for 2024 to track progress towards Net Zero by 2050 targets, and explore SBT alignment

o Undertake Feasibility Study for installing Solar Panels on the NDC

o Work with Fleet Manager to create a strategy for transitioning away from Diesel vehicles to low emission vehicles

o Purchase renewable power directly from source - via a Power Purchase Agreement (PPA)

o Explore voluntary reporting through the Carbon Disclosure Project ready for submission in the 2026 reporting round

o Implement mandatory training for Environmental Awareness People

Be an Employer of Choice: Attract and retain top talent by fostering a supportive and aspirational workplace culture.

o Delivering a compelling employer brand across recruitment channels

o Offering competitive and transparent reward and recognition programmes

o Promoting flexible working and wellbeing initiatives that support work-life balance

o Fostering an inclusive culture through targeted DEI (Diversity, Equity & Inclusion) strategies

o Investing in learning, development, and clear career progression pathways People

Champion Diversity, Equity & Inclusion: Build a positive, open, and inclusive environment that mirrors the diversity of our society and leverages its full range of skills and perspectives.

o Continue to monitor Diversity data material to the business to identify where improvements can be made to support under-represented groups to access skills, training and support that is needed for their retention and progression at GSF People

Empower Employee Development: Provide opportunities for all staff to contribute meaningfully, collaborate effectively, and progress both professionally and socially.

o Create an Engagement Strategy to enhance ESG messaging through existing comms channels, annual employee survey, face to face events and "town halls" to promote feedback and involvement in initiatives

o Incorporate informal reflection of ESG contribution into Personal Performance Development reviews to further embed ESG messaging as a "day to day" occurrence

OUR OBJECTIVES / TARGETS FOR 2025

Pillar Goal

o Objective

People

Prioritise Health, Safety & Wellbeing: Promote physical and mental wellbeing to keep people healthy, safe, and thriving at GSF Car Parts.

Governance

Drive Community Engagement: Connect employees with environmental and social initiatives, ensuring our success benefits the wider community.

Uphold Integrity & Accountability: Operate with the highest standards of legal compliance, ethical conduct, and corporate values across the GSF Group.

Sustainable Procurement

Embed Responsible Procurement: Partner with suppliers to promote ethical, sustainable practices throughout our value chain.

o Improve Health and Safety policies, procedures and reporting to increase reports of near-misses, reduce absence rates, and reduce severity / frequency of workrelated accidents or incidents

o Raise more awareness of our Employee Assistance Programme and the support on offer

o Increase awareness of the volunteering and match funding options available to employees through internal comms channels, and share good news stories

o Increase amounts of employee volunteering and match funding

o Use our EcoVadis improvement plan to identify new actions, and improve our EcoVadis score to achieve a Medal

o Continue with Phase 1 preparation for achieving our ISO Standards in 2026

o Incorporate TCFD risk report and mitigation into business continuity planning

o Implement mandatory training module on ESG @ GSF, Anti Bribery and Corruption and Modern Slavery

o Organise an (online) Supplier Conference to engage them in our ESG plans, support them with their own ESG journey, and foster opportunity for collaboration and innovation

o Extend the roll out of our Sustainable Procurement Policy, Supplier Code of Conduct and Due Diligence questionnaire to include Direct and In-Direct Suppliers with spend of <£100K

o Collate data on Supplier EcoVadis Scores (if available) to use in our supplier assessments and improvement targets

STRATEGIC PILLARS FOR 2025

At GSF, we believe long-term success must go handin-hand with responsibility to people and planet. In 2025, we’re raising the bar, embedding bold, measurable ESG goals built on four powerful pillars:

Environment

We’re cutting emissions, slashing waste and ramping up energy efficiency across our operations. Protecting the planet isn’t an add-on, it’s how we do business.

People

Our people power everything we do. We’re building a workplace where safety, wellbeing, inclusion and opportunity are non-negotiable. We back our teams with the respect, training and support they need to thrive.

Governance

Integrity drives performance. We hold ourselves to the highest standards of ethics, transparency and risk management – because good governance is good business.

Sustainable Procurement

We’re reshaping our supply chain to reflect our values – partnering with suppliers who share our commitment to sustainability, ethics and long-term resilience.

Together, these pillars are the foundation of a stronger, more responsible GSF, driving growth that benefits our business, our communities, and the world around us.

APPENDICES

ESG Supporting Documents

- Action Plan and KPI Tracker

- Gender Pay Gap Report

- Sustainable Procurement Policy

- Code of Ethics

- Carbon Footprint Report 2023

- SECR Report 2024

STRATEGIC PILLARS FOR 2025

Environment

We’re cutting emissions, slashing waste and ramping up energy efficiency across our operations. Protecting the planet isn’t an add-on, it’s how we do business.

People

Governance

Integrity drives performance. We hold ourselves to the highest standards of ethics, transparency and risk management – because good governance is good business.

Sustainable Procurement

We’re reshaping our supply chain to reflect our values – partnering with suppliers who share our commitment to sustainability, ethics and long-term resilience.

Together, these pillars are the foundation of a stronger, more responsible GSF, driving growth that benefits our business, our communities, and the world around us.

GSF CAR PARTS

GENDER PAY GAP REPORT 2025

ABOUTGSFCARPARTS

GENDERPAYGAPREPORT:GSF CARPARTSLTD

ABOUT GSF

AtGSFCarParts,wetakeprideinbeingoneoftheUK’s leadingautomotivepartsdistributors,providingthousandsof independentgarageswithhigh-qualityparts,tools,garage equipment,andspecialisttraining.Withanationwide networkof200branches,ourteamsbenefitfromthe expertiseandsupportofspecialistdepartmentsNationwide andinkeylocationssuchasWolverhamptonandChester. Ourcommitmenttoequality,inclusion,andrespectisatthe heartofeverythingwedo.Webelievethateveryindividual deservestobevaluedandempowered,andwecontinuously strivetocreateaninclusiveworkplacewhereeveryonecan thrive.Inlinewithourcorevalues—ownership,teamwork, andrespect andinaccordancewiththeEqualityAct2010 (GenderPayGapInformation)Regulations2017,wepublish ourGenderPayReportannually.Thisreporthighlightsthe differencesinaveragepaybetweenmenandwomenacross allroleswithinourbusiness,reflectingourongoing dedicationtotransparencyandfairness.Thedatawithinthis reportisbasedontherequirementdateof5April2024.

Iconfirmthattheinformationprovided isaccurateandmeetstherequirements setoutbytheUKEqualityAct2010 (GenderPayGapInformation) Regulations2017.

SteveHorne CEO

INTRODUCTION

At GSF we are dedicated to fostering an environment where every individual, regardless of gender, background or identity, has equal opportunities, recognition and rewards. This means we are committed to developing our people by providing opportunities for growth and equipping them with the skills needed to build a successful career within our business regardless of gender.

We ensure that all employees receive fair pay for the same or equivalent work free from bias or barriers. Our annual pay reviews assess roles and salary levels to ensure that all team members are fairly and appropriately rewarded for their contributions to GSF's ongoing success.

JulieBlagrove Payroll Manager

GSF is on an exciting journey of growth and investment which is creating new opportunities all round. As we expand, we are introducing new benefits, improving existing ones and strengthening the support we offer our people. As we continue to evolve we are proud to foster an environment where talent flourishes, ambition is nurtured, and every individual has the opportunity to excel. It truly is a great time to be team GSF! PAGE 4

GENDER PAY GAP REPORT

2024PAYQUARTILES

'I’ve been at GSF for 9 months in the role of Head of Indirect Procurement and am responsible for the business goods and services which is often called Goods not for Resale. This covers areas like IT, Logistics and Facilities Management. My focus is on value, risk and sustainability so making sure we get the best value for money, work with reputable suppliers and ensure continuity of supply. I love working for fast paced multi-site retailers and GSF fits this bill, especially the fast-paced bit! Looking forward to a busy year and seeing what targets we can smash together!'

SamJohns, HeadofIndirectPurchasing

'I joined GSF a year ago, bringing experience from the merchant sector. Although I had no prior background in the automotive industry, my passion for motorsports made GSF an exciting and dynamic place to work.

I began my journey as a Central Operations Manager and have since advanced to Head of Central Operations, where I now lead the Central Operations Team, Facilities Team, and Branch Support Team. I’m excited to continue thriving in this fast-paced environment and to seize opportunities for professional development.'

RupaBhojani,Headof CentralOperations

'I joined GSF in July last year as eCommerce Programme Manager. Having previously worked at an automotive tech startup moving to GSF was quite a big change.

'I have been in the motor trade for 20 years (I know I don’t look old enough), starting as a van driver I have been fortunate enough to have had various roles, from BDM, BM, Tools Specialist looking after 7 tool vans before having the opportunity of being the only female regional Manager in GSF, so I suppose I am an example of how you can progress with determination and hard work.

There seems a genuine “buzz” in our region and the company in general and it’s great to be a part of it, I am looking forward to watching my region grow and succeed throughout 2025.'

LesleyHowells, RegionalManager

Over the past eight months, I’ve loved being part of a business with a relentless drive to improve and excel. My role involves collaborating with teams across the organisation, which has allowed me to witness firsthand the passion everyone at GSF has for achieving our goals. I've been fortunate to have my manager's support in leading projects beyond my core role, giving me valuable exposure to different areas of the business. While there are still lots of challenges to overcome, I’m really enjoying being part of the GSF team and I'm excited to contribute to the incredible things we’ll achieve in 2025 and beyond.'

SophieGriffiths, DigitalProgramManager

NEXT STEPS

GSF Car Parts’ Gender Pay Gap continues to compare favourably with organisations across the UK and the automotive sector, and we remain committed to reducing the remaining gap by incorporating key actions into our plans for growth.

This information will and reviewed quart provided to the Sen an annual basis det is doing to reduce t the progress being m

In the coming year, w

We are proud to sit below the national average for both mean and median pay gaps, and our commitment to improving our pay and benefits package for all team members continues at pace. Actions we have actively taken over the last year and will continue to review regularly include:

• continually revie reward structur

• Our well-established annual pay review in which we benchmark our salaries against external companies in our industry and beyond, using a salary bracket approach to the branch network to ensure fair pay across the UK

• Regular lines of communication through all-staff town halls, manager briefings and team meeting packs to equip everyone in the business irrespective of who they are, with the same knowledge and understanding of GSF, as well as giving them the chance to input at every level

• continuing to en schemes and ap with local provid people’s awaren career opportun automotive sect misconceptions a

• We have demonstrated a clear commitment to fostering a culture of continuous learning and professional growth, providing all employees with the resources and opportunities to enhance their skills, advance in their careers, and achieve well-deserved promotions within the organisation. In support of this commitment, we are launching level 3 and level 5 management training which will be IMI accredited open to every member of staff in the business

• a review of work Parts Alliance fu balance and flex

• prioritising the r to March 2019 e ensure we impr opinions of all T

• We provide opportunities for our teams to engage with community institutions such as colleagues to directly support students with their career and skills development, as well as celebrating the success of apprentices in our industry through trade bodies like the IMI

Any further initiativ the year will be rep communication cha

Noora Talo Head of Financial Planning and Analysis

Sally Dowling Chief Financial Offic

GSF CAR PARTS GROUP

SUSTAINABLE PROCUREMENT POLICY

At the GSF Car Parts Group we recognize that our purchasing decisions have a significant impact on the environment, society, and economy, and therefore, we are committed to integrating sustainability principles into our procurement processes.

We understand that purchasing decisions are not always straightforward. Therefore we ask that the purchasing of goods and services takes into consideration not only cost, availability and suitability; but also it’s environmental, ethical or social impact.

This will ensure that we achieve our aims of:

• Providing and maintaining a high quality of goods and services for our customers

• Minimising the risks to people’s wellbeing, health and safety and other risks within the business and wider value chain

• Achieve our goals of reducing our carbon footprint and resource use, waste, pollutants or biodiversity loss

• Maintaining human rights and ethical good practice

• Creating opportunities for under-represented; local; SME; or non-profit businesses or organisations

• Ensuring legal compliance and high standards of governance through good practice, accreditations and certifications

Scope:

This Sustainable Procurement Policy is designed to work alongside our existing Procurement Policy and Standard Operating Procedures and covers any purchasing decision within the business.

We encourage all employees and authorised budget holders / buyers to look at alternative goods and services to ensure a fair comparison can be made before making a purchasing decision.

This policy supports our Sustainable Procurement Strategy and it’s associated documents:

• “Request for Information” at tender stage

• Supplier Risk Assessment

• Supplier Code of Conduct

• Supplier Sustainability Assessment Questionnaire (SAQ)

• Supplier Contracts inc. ESG related clauses, targets and improvements

• Sustainable Supply Chain Report

1. Environmental Responsibility

a. We will prioritize the procurement of products and services that have minimal adverse environmental impacts throughout their lifecycle, including sourcing, production, transportation, use, and end of life.

b. We will seek to minimize resource consumption, energy usage, and waste generation in our procurement activities by choosing products and services that are resource-efficient and promote circular economy principles.

c. We will give preference to suppliers who use sustainable packaging materials and practices to minimize packaging waste and promote recycling and reuse.

d. We will work with suppliers who actively try to reduce Net Biodiversity Loss, Pollution and adverse environmental impact on land, water or human communities.

GSF CAR PARTS GROUP

SUSTAINABLE PROCUREMENT POLICY

2. Social Responsibility

a. We will ensure that our procurement practices uphold and respect human rights, including the rights of workers, communities, and indigenous peoples, as outlined in international standards such as the Universal Declaration of Human Rights and the International Labour Organization’s core conventions.

b. We will only engage with suppliers who demonstrate a commitment to fair labour practices, including safe working conditions, fair wages, and the prohibition of child labour and forced labour.

c. We will promote diversity and inclusion in our supply chain by actively seeking out and supporting suppliers from diverse backgrounds, including women-owned, disability; ethnic minority-owned, local, social enterprises, and small and medium-sized enterprises (SMEs).

3. Ethical Governance

a. We will conduct our procurement processes with transparency, integrity, and fairness, ensuring that all supplier selection and contract award decisions are based on objective criteria and free from corruption, bribery, and conflicts of interest.

b. We will comply with all applicable laws, regulations, and industry standards related to procurement, including those pertaining to anti-corruption, competition, and data protection.

c. We will pay our suppliers as agreed within specific terms and conditions, and within the specified payment dates.

4. Continuous Improvement

a. We will establish key performance indicators (KPIs) to measure and monitor the sustainability performance of our suppliers and regularly assess their compliance through the use of our Code of Conduct, Supply Chain Assessments and contractual arrangements.

b. We will engage and collaborate with our suppliers to identify opportunities for continuous improvement in sustainability performance and share best practices and innovative solutions that contribute to our shared sustainability goals.

5. Stakeholder Engagement and Communication

a. We will communicate our sustainability commitments, progress, and performance to our stakeholders, including employees, customers, investors, and the wider community, and seek their input and feedback to inform our decision-making processes.

b. We will engage with our suppliers to raise awareness of our sustainability expectations and requirements and encourage them to adopt sustainable practices throughout their operations and supply chains.

c. We will develop and implement a Supplier’s Code of Conduct / Ethics which we will expect

GSF CAR PARTS GROUP

SUSTAINABLE PROCUREMENT POLICY

6. Training and Development

a. We will identify and implement specific sustainable procurement training and learning opportunities for our employees who have purchasing within their role so they can:

• Work with colleagues to implement this strategy within our existing procurement and finance processes

• Stay up to date with current legislation and good practice to ensure compliance

• Support GSF Car Parts Group with our continuous improvement and external stakeholder reporting

7. Accreditations, Standards and other Third Party Verification

At GSF Car Parts Group we will identify and explore options for obtaining third party verification such as accreditation, standards or other initiatives that support our sustainable procurement strategy, policies and procedures.

This may include (but not limited to):

• ISO 20400

• EcoVadis

• UN SDGs

• Carbon Disclosure Project (CDP)

• Industry bodies

7. Monitoring and Review

Responsible persons within Procurement and Finance will work together to periodically review and update this policy to reflect changes in legislation, industry standards, and best practices, and to ensure its continued alignment with our sustainability objectives and values.

Signed:

Name:

Date:

Position:

GSF Car Parts Code of Ethics

Welcome,

You hold in your hands an important booklet. When people ask you what it’s like to work at GSF Car Parts, what’s in this booklet should match your experience and I hope that’s a positive and rewarding one.

This booklet isn’t intended to be an exhaustive guide of dos and don’ts, or a glossary of our ins and outs. It serves as a fixed piece of content that sets out the principles and standards we expect of our Team Members and what they can expect from GSF Car Parts too. It also covers the corporate governance that it’s essential for us all to adhere to in order to ensure we operate both lawfully and efficiently.

In the coming pages you’ll find key topics that relate to how we work with each other such as our values and behaviours, as well as what we do including data security, recruitment, contracts and more.

Our ask is that you familiarise yourself with the information and guidance within this booklet. Champion these standards, values and behaviours, lead by example and hold to account those who don’t.

When we’re all moving in the same direction, focused on the same goals and working with the same values, we’re an unstoppable force.

Sukhpal Singh Ahluwalia Steve Horne Executive Chairman CEO

The way we work

We all have a part to play in working together to achieve our business objectives and making GSF Car Parts a successful and rewarding place to work. We commit to providing you with a clear strategy and giving you the support you need to manage our operations and business efficiently.

This section will cover what is expected of you and what you can expect from others at GSF Car Parts, including our core values. Even if you have been working with us for some time, it is useful to remind yourself of these standards to ensure we are all working as efficiently, productively and supportively as possible.

Our Mission & Vision

Our mission

At its simplest, our mission is to deliver the right part to customers first time, every time. We are a customer centric business and our success is driven by our ability to excel in four key areas:

• Availability

• Service

• Price

• Easy to trade with

Our vision

To be the employer, business partner and seller of choice in our industry.

Our Values

Ownership

We build and grow our business with an owner’s mindset. We dig in to understand the factors that can drive our success, we meet problems head on to fix them and we see change as an opportunity. We are hands-on, committed and take responsibility for our actions. We seek to understand our customers, as their satisfaction is the foundation of our business.

Teamwork

We collaborate, communicate and support each other, creating a positive environment in which personal and business success is celebrated. We tap into the insights of those around us and take pleasure in sharing our expertise and lending a hand. We create strong relationships with each other, our customers, suppliers and shareholders to build trust through openness and reliability.

Respect

We value and respect all people. We strive to create an inclusive culture that promotes diversity. We know our differences lead to a stronger, more creative work environment, and make us a better company. We are dependable and always treat those around us with care and professionalism. We act with integrity and honesty and have the courage to do the right thing.

Our Behaviours

Being part of GSF Car Parts means being part of a fast-paced, customer centric business that aims to provide a rewarding working experience. We must be value-led, sales-focused and hungry to succeed in everything we do.

At GSF Car Parts, the customer is always king. They rely on us to get them what they need, when they need it, providing the best choice, quality and service.

Whether you are dealing with customers, colleagues or suppliers, all of us want to be treated with honesty, fairness and respect. This means playing an active and lasting role that makes a positive difference to the environment and communities in which we are based.

Core Behaviours

Be respectful

Always be open, honest and fair, treating others in the way you expect to be treated.

Recognise others

Value and highlight the contributions and achievements of those around you.

Show enterprise

Seize the initiative, be entrepreneurial and seek new ways to help grow the business.

Work together

Collaborate and communicate to ensure seamless efficiency across the business between teams.

Continuously improve

Always consider whether what you’re doing will help to move the needle.

What good looks like

GSF Car Parts is most successful when all our Team Members are pulling in the same direction, working to the same shared standards and principles that support our values and core behaviours.

These examples outline what we expect of you and what you should expect of those you work with across GSF Car Parts.

Contribute to an open & honest culture

Communicate openly to tackle concerns and challenges by raising them with honesty and sensitivity, encouraging others to do the same.

Drive your development

Seek ways to learn and develop, regularly inviting feedback. Step outside your comfort zone and be willing and prepared to act on feedback.

Display self awareness & recognise others needs

Be aware of emotional responses to situations/others and adapt in order to achieve the best outcome. Show awareness and understanding of others, using this to develop productive working relationships.

Be enthusiastic & commited

Bring positivity, enthusiasm and always look for solutions. Lead by example and create an atmosphere where people have fun. Spread enthusiasm among your team and inspire others with your energy and creativity.

Be responsible

You should be self-motivated and able to work without supervision. Set high standards, admit mistakes or failures and then correct them. Take the initiative, consistently achieve high standards and look for opportunities to learn.

Appearance & professional presentation

Be neat, tidy and follow the GSF Car Parts dress code. Inspire a professional, positive outlook and create an environment of calm professionalism.

Leading & Developing Customer Service Champion

Communicate clearly & simply

Keep communication clear, simple and well structured. You are recognised by managers as having worthwhile opinions that are measured and constructive.

Get the best from you colleagues

Be supportive and encouraging to all colleagues, encouraging everyone to contribute.

Play a key role within the team

Interact with others in a positive way and show support for new ideas and ways of working. Use your initiative to influence others and champion important issues.

Listen

Welcome feedback, responding to it positively and acting on it. Listen to colleagues and encourage their positive actions.

Offer outstanding customer service & exceed expectations

Always focus on the customer as your number one priority. Go the extra mile and do everything you can to ensure our customers have an excellent experience, whether directly or indirectly through your role.

Have pride in the wider business & treat it as your own

Demonstrate the values and behaviours detailed here and be an advocate of the company to prospective customers, candidates and stakeholders. Challenge colleagues or actions that do not move the needle. Show interest and knowledge about areas outside of your own department or branch.

Strive to be the best

Adopt new procedures and adapt to change willingly. Promote and encourage initiatives within the department or branch. Champion good ideas and promote and encourage initiatives across the company.

Think

commercially

Look for opportunities to improve productivity and quality. Keep profit in mind and be aware of how costs impact in order to ensure we are valuedriven. Generate ideas to improve profitability while inspiring others to reduce costs by leading by example.

Anti-Bribery & Corruption Jargon Buster

In this section we’ll run through the some of the areas that are essential to us operating lawfully and ethically. It’s important to be aware of these and to always adhere to any guidance, policies and procedures related to them

Bribery and Corruption

At GSF Car Parts we comply with the UK Bribery Act 2010 and similar laws in countries where we conduct business. This act sets out standards and liabilities on bribery and corruption, including a corporate offence of failure to prevent bribery. We must adhere to the law to meet these standards.

You must never engage in bribery or any form of unethical inducement or payment. Such behaviour is illegal and could result in substantial fines for the company and damage to our reputation, as well as potentially your dismissal.

Bribe

A bribe is any gift, loan, fee, reward or other advantage to persuade someone to perform their function or activity improperly while carrying out the company’s business.

Kickback

If a supplier offers to share commission with you in exchange for securing a contract, this is a kickback.

Facilitation payment

If a contract is being held up by official bureaucracy and you offer money to an official in order to move the contract to the top of his priorities, this would be a facilitation payment.

Reciprocal agreement

Please read the full Anti Bribery and Corruption policy stored on the intranet for more information.

The following are all examples of bribery:

• Bribe

• Kickback

• Facilitation payment

• Reciprocal agreement

If you are negotiating a contract with a supplier and the supplier offers to become a customer in exchange for the contract, this is a reciprocal agreement.

& Wellbeing Representing GSF Car Parts

At GSF Car Parts we consider the health, safety and wellbeing of our Team Members, customers and others who may be affected by our activities as fundamental to our success. We believe that when you come to work you should be able to return to your family and friends safely and in good health.

We each have a responsibility to comply with the law and company procedures, and to take precautions to avoid injury or illness to ourselves, our colleagues, our contractors, our customers and other members of communities that may be affected by our activities.

In line with this, we have a robust suite of mandatory Health and Safety policies, processes and training courses that you must complete and adhere to as part of your role.

If you have any concerns about health and safety, speak to your manager or the Health and Safety team.

Drugs and Alcohol

GSF Car Parts relies on our Team Members’ judgement to operate efficiently and safely, maintaining a lifestyle and behaviour that enables them to perform to the best of their ability while at work.

Team Members whose judgement or behaviour is affected by alcohol or drugs put the business, safety of their colleagues, themselves and others at risk. We recognise that misusing alcohol or drugs may be considered a medical condition and we are committed to helping you if you have any related problems. If we feel you have this kind of addiction, we will encourage you to get confidential help from our Occupational Health external partners.

We may from time to time carry out tests of Team Members for alcohol and drug use (i.e. breath tests whilst they are on our premises) and we ask all Team Members to assist us in this matter should we feel that such a test is necessary. These searches are random and do not imply suspicion in relation to any individual concerned.

Marketing

We seek to comply with all relevant laws and regulations in relation to our marketing and advertising activities. Think before you post....

Social Media

We encourage you to exercise great care when using social media. You must never post or give out information about specific business activities on personal sites, emails, blogs or forums, since once this information is shared, it is impossible to control how it is used or distributed further.

When posting or engaging in any activity on social media, you should use good judgement to consider whether this is something you would do or say at work in a professional environment.

The use of the internet to distribute any kind of work or employee-related offensive material either during or outside of working hours leaves an individual liable to disciplinary action which could lead to dismissal. This also applies to comments made on social networking sites e.g. Facebook, X (formerly known as Twitter), Instagram, Tik Tok etc.

GSF Car Parts Branded Items

During your employment you are representing GSF Car Parts and you should be aware that you continue to represent the company outside of your contracted hours of employment, especially if you drive a company-branded vehicle or wear a branded uniform.

Media Relations

The reputation of our business is very important and we are considerate of how we present ourselves in the media, therefore you must not talk to the media or respond to any media enquiries without first getting approval and guidance from our Communications team.

In the event that you are contacted by a member of the media team, you should immediately redirect this query to the Communications team, who will respond accordingly.

Fraud

Fraud involves using deception to gain something for you or other people. This could involve making false expense claims or making false entries in financial records in order to steal money or for financial benefit. It is a criminal offence to produce or provide false information or documents required for accounting purposes, no matter whether or not you benefited from doing so.

Falsely declaring or producing false financial records or dishonestly failing to declare information are also construed as criminal offences. If you break the law, action will be taken via the correct authorities, including the Police. This may extend to disciplinary action up to and including dismissal.

If you are in any doubt about whether you would be breaking the law, please speak to your manager or the HR department.

Did you know...

False commission claims, expense claims, bonuses, invoices or overtime are all classed as fraud.

Additional Employment

We recognise that some Team Members may have a second job. You must get authorisation from your manager before you accept any additional employment. You must also make sure that the other job does not conflict in any way with your role at GSF Car Parts. You must not act as a director, employee, consultant or advisor, or in any other role for any organisation that could compete with or has a business relationship with GSF Car Parts. without first getting written permission.

Conflict of Interest

We expect you to act in the company’s best interests at all times and to avoid any activities which conflict, or appear to conflict, with the interests of the company, adversely affecting our reputation or our relations with others. Employees must not use their position, influence, company information, assets or resources in a way that benefits them personally or improperly benefits others.

If you have doubts about a potential conflict, take advice from your manager, HR manager or any other manager.

Hospitality & Gifts

While you are working for GSF Car Parts it is possible that a customer, supplier or business partner will offer you a gift or hospitality. Equally, in some cases, you may want to offer a gift or hospitality to a customer or business partner on behalf of the company.

Hospitality is regarded as any event involving more than just a meal with a business contact that is paid for by the contact. Any hospitality you offer or receive must be logged in the H&G register located in HR. You must record all gifts or hospitality – whether you accept them or not. This does not apply to items of a low value such as promotional material.

Where gifts are accepted, HR will make the decision whether the company keeps the gift or whether it be donated to a registered charity. If you are in any doubt about offering or accepting a gift or hospitality, it is important that you discuss the situation with HR.

When considering whether to offer or accept a gift or hospitality, make sure that it does not:

• Break the law

• Influence a business decision or transaction

• Give you an obligation to do something in return to the gift giver

• Involve regular offers from any one organisation or individual

• Involve receiving something that you could not offer in return

• Create a negative perception of the company

You are allowed to accept low value gifts. These are items such as:

• Pens

• T-shirts

• Flowers

• Diaries

• Calendars

• A bottle of wine

Most countries, including the UK, have laws regulating or prohibiting gifts or contributions to or expenses charged to a business or incurred in its name on behalf of a candidate, political party or organisation or to any individual who holds or is seeking public office, whether during the calendar year or in relation to elections.

Therefore, no corporate funds or services shall be paid, supplied, offered or promised to any candidate, political party or organisation or to any individual who holds or is seeking public office.

Outside Opportunities

Serving on the board of directors or an advisory committee of for-profit and non-profit organisations may present many opportunities for conflicts of interest. Before agreeing to become a member of the board of directors or an advisory committee of any for-profit organisation, you should contact the HR Department to determine the relationship, if any, existing between GSF Car Parts and the for-profit organisation.

To ensure activities relating to non-profit or community organisations do not create a conflict of interest or other problem, you should notify your supervisor or the HR department of your prospective membership before you agree to the board service. If approved for serving on the board of directors of an outside organisation, you may not conduct outside business during working hours or use GSF Car Parts assets, information, resources or personnel in any work for another business.

A conflict of interest may also arise if outside employment activities impair your performance at GSF Car Parts. You should always ensure that any outside activity is strictly separated from your employment. For more information regarding the responsibilities of our Team Members, please refer to our Conflict of Interest Policy on the intranet.

Confidentiality & GDPR

Confidential information is any information relating to identified or identifiable people or businesses. Information of any description should be used appropriately and should only be accessed by those who have a genuine business reason for using it.

You must never share confidential information about the company or our customers, employees, shareholders or business partners with others outside GSF Car Parts or use it for your own benefit. If you are in doubt, please speak to your manager in the first instance.

Data Protection

While you are employed with us, you may have access to confidential information about the company’s business, finances or affairs. You may also have access to information that we have a duty to keep confidential (for example, information about our customers).

If you are involved in making or creating any invention, design, discovery or database (in other words, intellectual property) during your employment, the company owns all rights, titles and interests. You must not copy or use any intellectual property without permission.

You must not use or disclose that information other than for the purposes of your work during your employment with us. If you leave the company, you are still obliged to keep information confidential. If you break this duty, we could take legal action against you.

Security & Compliance

Personal

Our aim is to create a safe and secure environment that enables us to go about our business without hindrance from criminal activity, physical danger or disruption to our operations. We all have a personal responsibility for security, by being vigilant to potential risks, reporting incidents, complying with procedures and behaving responsibly.

Property

We provide you with equipment to do your job, for example, workstations, phones and IT equipment. In return, we ask that you use it carefully and responsibly. Valuables such as mobile phones, smart phones, sat navs, laptops and tools should never be left unattended and always kept in a secure place. Unless it has been explicitly authorised, you must not use company equipment for your own purposes. If you are not sure, please discuss the situation with your manager.

Information

Our day-to-day business activities rely heavily on effective and fully functioning systems. System-based threats such as viruses can spread quickly and it is easy to infringe software or computer hardware licence agreements inadvertently. You should never download personal software to your work computer unless you have been given specific authorisation.

We check, monitor and sometimes block emails and internet traffic, as well as messages and documents entering and leaving the company, particularly those containing explicit language or pictures. In certain cases, we may monitor and record your phone / email conversations for quality and content or for training purposes. Accessing inappropriate websites or misusing company email and other computer systems could seriously damage our reputation. If you do this, we will treat it as a disciplinary matter. You may also be breaking the law and could face criminal prosecution. If you have any concerns, please speak to your manager, HR or the IT department.

Recruitment & Equal Opportunities

As we grow, we are committed to creating a culture where we value our people and where we operate in a culture of mutual trust and respect.

• We will recruit people based on their qualifications and abilities to do the job.

• We will not tolerate any form of discrimination, harassment or bullying in the workplace.

• We will work with employees to ensure communication on matters affecting the company, through regular newsletters, employee forums and the employee intranet.

• We will recognise and value the potential that individuals of different backgrounds and abilities bring to their work.

Our employment policies and practices reflect a culture where decisions are made based on individual ability and potential in relation to the needs of the business. We do not tolerate any form of discrimination, bullying or harassment, whether it is carried out deliberately or not.

Team Members must not be treated less favourably because of age, disability, gender reassignment, marriage and civil partnership, pregnancy and maternity, race (including ethnic origins, nationality and colour), religion or belief, sex and sexual orientation or part-time and fixed term status. It is your responsibility to make management aware of any cases where Team Members are not respecting our diversity policies, whether it affects you personally or someone around you. The matter may then be addressed through the appropriate disciplinary and grievance procedures.

Bullying/Harassment

Harassment and bullying can take many forms, from openly bullying someone to behaving threateningly towards them. While we expect high standards of work and may from time to time manage performance to meet business needs, we will not tolerate victimisation or inappropriate behaviour towards employees.

Personal Relationships at work

If you form a personal relationship with someone at work which could lead to a conflict of interest or loyalty, you must declare it. An example may be where you have authority over another employee in terms of their appraisal, salary or promotion. You should also declare any personal relationships you have with people who work with our suppliers, customers, competitors or other business partners if that relationship could lead to a conflict of interest.

Protection of Intellectual Property

We value new product and business ideas, concepts and other information we produce. When we do not identify or otherwise protect this “intellectual property”, GSF Car Parts risks losing rights to it and the competitive advantages it offers. Protect intellectual property from illegal or other misuse by making sure it is affixed with or identified by appropriate trademark, service mark or copyright notice. Licenses must be obtained to use intellectual property belonging to someone else or we must purchase the outright ownership of the property. Avoid infringing on the intellectual property of others.

DO NOT:

• Disclose non-public intellectual property inappropriately or without GSF Car Parts permission.

• Use a previous employer’s intellectual property without that company’s permission.

• Make unauthorised copies of software or licensed information, except as specified in the licensing agreement.

• Photocopy magazine/journal articles or other publications unless you have the authority or license to do so.

• Hire a competitor’s employee to obtain that competitor’s trade secrets.

• Affix the trademark of another company to goods without authorisation.

• Fail to remove another’s trademark when the goods or parts are remanufactured.

Resources

The responsibility to protect the GSF Car Parts assets such as materials, equipment and supplies against loss, theft, damage, abuse, unauthorised use and destruction applies to all Team Members.

GSF Car Parts provides a range of information, tools and and resources intended to support you in your job. These tools are corporate property and must be used in a manner that reflects positively on GSF Car Parts and all who work here.

Occasional, limited personal use of these resources is permitted, but cannot interfere with your work performance or the work performance of your colleagues. Such inappropriate use of these resources includes, but is not limited to, the following:

• Hacking

• Pirating software and video/audio files

• Soliciting

• Distributing literature for outside entities

• Sending inappropriate email

• Accessing inappropriate websites (such as those advocating hate, violence, sexually explicit material or promoting illegal activities)

• Distributing confidential or proprietary information of GSF Car Parts externally

• Use of GSF Car Parts resources for personal gain

• Excessive use of GSF Car Parts phones for long-distance for personal purposes

• Taking office supplies or equipment for personal use at home

• Use of corporately issued credit cards for personal purchases

GSF Car Parts reserves the right to monitor and inspect, without notice, the use of its information and technology resources.

Information & Technology

Use of GSF Car Parts networks is both a necessity and a privilege. If you have access to our information systems and computer networks, you are responsible for using the highest standards of behaviour in all of your usage and communications. When you access our networks from remote locations (for example, at home or from other non-corporate locations), you are subject to the same standards of use as you are when you access our networks on company premises.

Our networks and information systems are for legitimate corporate-related business purposes. Limited personal use may be acceptable if it is authorised by your work location and does not interfere with your job responsibilities. Do not use GSF Car Parts networks for:

• Accessing third-party personal e-mail services such as Gmail

• Sending or receiving personal instant messages.

• Posting non-business messages to internet discussion groups and bulletin boards.

• Soliciting for commercial, charitable, religious or political causes.

• Sending inappropriate, offensive or disruptive messages.

• Gaining unauthorised access to databases or information sources at GSF Car Parts or any other site.

• Damaging computer equipment, software or data.

• Interfering with or disrupting network users, services or equipment.

Records Management

Our records are our corporate memory, providing evidence and decisions containing data and information critical to the continuity of our business. Records consist of all forms of information created or received by GSF Car Parts, whether originals or copies, regardless of media.

Examples of these records include:

• Paper documents

• E-mail

• Files stored on any medium that contain information about GSF or our business activities.

Financial Integrity

GSF Car Parts financial records contain vital and certain confidential information about our operations and constitute the basis upon which key business decisions are made.

The accuracy and completeness of these are critical to meeting obligations to shareholders, team members, suppliers and other stakeholders. They are also required for compliance with tax and financial laws and regulations. No Team Member, officer, director or consultant shall intentionally cause a false, incomplete or misleading entry to be made in the accounting books, records, accounts and financial statements of the Corporation.

All the accounting books, records, accounts and financial statements of the Corporation must record transactions in an accurate, complete, reasonable and understandable manner. All the assets and liabilities of the Corporation must be reflected in the Corporation’s accounting records in accordance with the applicable accounting principles. It is a criminal offense to produce or provide false information or documents required for accounting purposes, no matter whether you benefited from doing so. Falsely declaring or producing false financial records or dishonestly failing to declare information are also construed as criminal offenses.

Insider Trading

Insider trading is a priority of market surveillance organisations. The fundamental rule is to the effect that insiders cannot trade securities when they have knowledge of material facts that are unknown to the general public and that, if known, could affect the decision of an ordinary investor to trade in the security.

The major protection to circumvent illegal insider trading is insider reporting obligations which serve two purposes. First, it provides information to the market about the trading activities of those who manage or control the reporting issuers. Second, it serves to deter insider trading based on confidential information since insiders must disclose all of their trades to the public. Failure to comply with insider reporting requirements can lead to serious consequences, from cease trade orders to prosecution before the courts. In addition, the failure to file an insider report on time will entail a late filing fee.

“ “

GSF Car Parts financial records contain vital and certain confidential information about our operations and constitute the basis upon which key business decisions are made.

Commitment to others

Business Practices

Everyday business practices such as discounts, rebates or customer services may involve a potential for fraud or abuse if the we do not follow the appropriate policies and procedures. Anyone involved with these business practices must therefore ensure they are documented in line with the appropriate approvals, processes and ongoing management.

Third Party Data Privacy

Keeping customer information secure and using it appropriately is a top priority for GSF Car Parts. We must safeguard any confidential information customers or third parties share with us. We must also ensure that such information is used only for the reasons for which the information was gathered. unless further use is allowed by law. Customer or third party information includes any information about a specific customer/third party, including such things as name, address, phone numbers, financial information, etc. We do not disclose any information about a third party without the written approval unless legally required to do so.

Competition

GSF Car Parts and all our Team Members must comply with competition legislation, as well as, with all anti-trust laws, policies, procedures, rules and practices existing in the countries in which we operate. The following rules apply with respect to competition:

A) No Team Member shall enter into an agreement or contract for the purpose of or having the effect of, limiting competition. Illegal understandings or agreements between competitors include, without limitation, price fixing, allocation of markets and manipulation of tenders.

B) No Team Member shall exchange, discuss or compare information with a competitor regarding prices, purchasing conditions, pricing and distribution policies, selection or rating of suppliers or clients, credit policies or other similar competitive information.

C) No Team Member shall take part in meetings with competitors or with trade associations, whether officially or otherwise, during which agreements or contracts of the type described in paragraph A) are reached or during which information of the type described in paragraph C) is exchanged or discussed.

Contractual Obligations

All Team Members who enter into contracts, commit the business’ funds, agree on price or consideration for the procurement of equipment, material goods or services, or approve financial management transactions on GSF Car Parts behalf, whether with a supplier or a customer, must ensure:

1) they have proper authorisation in line with GSF Car Parts delegation of authority

2) the transaction is covered by a contract

3) the contract is executed in line with the above authorisation and contract.

Team Members approving payment against a contract through the payment of invoices and vouchers must also ensure they have proper authorisation and have followed the relevant policies and processes listed on our Finance team’s intranet page.

Contributions & Sponsorships

GSF Car Parts is proud to support recognised charitable organisations and nonprofit organisations to the extent that these contributions do not contravene its rules of conduct and the rules of this code of ethics.

It is the responsibility of HR and Communications teams to approve any contributions prior to payment in accordance with GSF Car Parts delegation of authority and established policies and procedures regarding charitable giving.

Anti-Boycotting, Money- Laundering, Embargo And Control Of Trade Laws

GSF Car Parts and our Team Members must comply with all laws, regulations and procedures relating to anti-boycotting, money-laundering, embargoes and control of trade applicable to where we operate.

We do not cooperate with foreign boycotts that are not approved in the jurisdictions in which we operate. Additionally, doing business with certain countries may result in imposed economic sanctions. Money laundering is defined as the process of converting illegal proceeds so that funds are made to appear legitimate and it is not limited to cash transactions. Complex commercial transactions may hide financing for criminal activities such as terrorism, illegal narcotics trade, bribery and fraud. Involvement in such activities undermines our integrity, damages our reputation and can expose GSF Car Parts and individuals to sever sanctions.

We forbid knowingly engaging in transactions that facilitate money laundering or result in unlawful diversion. We take affirmative steps to detect and prevent unacceptable or illegal forms of payment and financial transactions. Anti-money laundering laws require transparency of payments and the identity of all parties to transactions. We are committed to full compliance with anti-money laundering laws throughout the world and will conduct business only with reputable customers involved in legitimate business activities and transactions.

Any Team Member who suspects that the other party to a commercial transaction is involved in illegal activities or is using revenues derived from illegal activities must consult and obtain approval from the Finance department before concluding the transaction in question.

Whistleblower Policy

If you are concerned about any possible improper, unethical or illegal practice within the organisation, you have a responsibility to speak up.

It can sometimes be difficult to know how to respond to certain situations. If you are faced with a difficult choice as part of your employment with us, there are some straightforward questions you can ask yourself to help you think clearly and make the right decision.

If you answer ‘yes’ to any of the following questions, you need to speak up:

• Is it illegal?

• Is it inconsistent with our business principles and policies?

• Could it harm our organisation in any way?

• Would it be difficult to justify actions to a manager, colleagues or family?

• Is there a risk to colleagues H&S?

There are some cases where the right decision may still not be obvious or you may need more detailed advice and guidance.

We encourage you to raise the matter with your line manager first or alternatively our HR department, however we also provide the facility to contact our confidential external provider Safecall either by phone or online:

0800 915 1571

www.safecall.co.uk/file-a-report

Protecting those who raise concerns

We are committed to dealing responsibly, openly and professionally with any genuine concerns and if you raise them in the correct way, you will be legally protected. You can remain anonymous if you want to, although we encourage you to provide your name and contact details to make sure that we can investigate the matter effectively and update you on our progress.

Corporate Social Responsibility

We aim to be a company that people are proud to work for and eager to do business with. Our values define how we aim to do business and we are committed to the following principles in support of this:

• To maintain an inclusive, supportive and collaborative culture across our business.

• To provide opportunities for Team Members to develop their skills and progress their career with GSF Car Parts.

• To minimise the impact and maximise the benefits that our work has on the environment and people around us.

• To comply with, and exceed where practicable, all applicable legislation, regulations and codes of practice.

• To support our Team Members who seek to raise money or volunteer for charities and community causes wherever possible.

Our commitment to the Environment

We take our environmental responsibilities seriously and are committed to the continual improvement of our own performance with regard to environmental, social and corporate governance (ESG). As a business we will:

• Ensure all waste is disposed of correctly using approved contractors and that all waste management processes comply with legislation.

• Promote waste reduction, re-use and recycle wherever possible.

• Deliver in re-useable totes and pallets, and where possible re-use product packaging or pallets to consolidate deliveries.

• Monitor energy use at all sites and seek and implement ways to reduce where possible.

• Ensure fleet operations are energy efficient by increasingly utilising tracking technology to improve both vehicle running and driving style.

• Identifying opportunities to reduce impacts associated with travel, through minimising the requirement for travel, encouraging improved travel planning and providing alternative meeting facilities to avoid travel.

• Measuring our performance and setting targets for continual improvement via our commitment to the ESOS scheme.

GSF Car Parts Code of Ethics

GSF Car Parts Ltd

Net Zero Pathway Report

5th July 2024

GSF GROUP ENVIRONMENT STRATEGY

Led By: Simon Lane (Head of People) & Martin Gray (Chief People Officer)

Reporting: Quarterly to the Board and Investors

Goals:

• GSF Group to become a sector leader in sustainability.

• Remove all carbon emissions associated with GSF Groups own operations in the UK (Scope 1 & 2) by 2030.

• Carry out full benchmarking of Scope 3 carbon emissions (supply chain, upstream/ downstream emissions, waste and transport) and identify and implement reductions.

• Introduce a full Cultural Engagement strategy to train and onboard employees with environmental strategy. by 2050

Objectives:

• Identify and implement energy saving measures to reduce and ultimately remove carbon emissions across the GSF Group portfolio.

• Introduce new methods of procuring green energy (Power Purchase Agreement) to further increase GSF Group’s sustainability rating.

• Install own-source generation (solar PV) to all appropriate buildings wherever feasible.

• Introduce electric vehicles wherever practical and cost effective to reduce emissions from own-fleet transport.

• Identify and implement methods of reducing supply-chain emissions and upstream/ downstream activities through engagement with suppliers.

• Roll out a comprehensive Cultural Engagement strategy to raise awareness of energy saving actions and promote personal responsibility.

Requirements/ Priorities

EXECUTIVE SUMMARY

GSF Car Parts Ltd is seeking Board level approval to implement a sustainability strategy which will see the company decarbonise its emissions (Scope 1 & 2) by 2030, and become fully Net Zero by 2050 in line with UK government ambitions. His is known as a Net Zero Pathway and is in line with the companies “4 Pillars” strategy.

In order to meet its ambitions, a strategyhas been devised involving the following actions:

Measuring & baselining current emissions to establish Business as Usual emissions

Identifying carbon reduction measures at GSF properties and within its operations

Agreeing suitability of measures based on operation of sites and the investment appetite of the company

Implementation of measures during the term of the Net Zero strategy

• GSF Car Parts Ltd currently purchases “carbon free” electricity from EDF Energy for use in its operations (this is “Tier 1” green –see page 32 for more detail); however, for fully green credentials GSF Car parts will adopt a Purchase Power Agreement (PPA) as a minimum – this is a “Tier 2” approach.

• A Tier 3 approach will be adopted where viable (site ownership and investment allowing) – this involves installation of solar PV on suitable rooftops. The cost of this is approximately £100k per site (average) with a payback of 6.4 years.

• GSFCar PartsLtdwill decarboniseits owndistributionfleetofvehiclesby sellingandenteringan“OperatingLease”.Thiswill removeapproximate 60%ofGSFCar Parts’Scope1and2emissionsandputtheseintoScope3 fortacklingseparately.

• AfullCulturalEngagementstrategyistobeadoptedtotrainstaffand stakeholdersonsustainability.Thismayberepresentedbyanexpectation todedicatea setnumberofdaysperannumontrainingandawareness. Thiscouldreduceenergywastagebyupto5%.

• The current rollout of LED lighting is to be completed across the entirety of the estate.

• A full list of 17 measures has been identified as suitable for the GSF Car Parts estate. Measures will be adopted base don suitability at each property.

GSFCar PartsLtd current carbon footprint is as follows (baseline FY-21):

ACTIONS

• A Solar Generation initiative across the GSF portfolio is to be rolled out; for detailed costings, a full feasibility assessment will be carried out for each property. Early estimates are that costs will be approximately £100k per site (on average) with rollout across the whole portfolio totalling nearly £2million.

• Implement immediate Initiatives; LED lighting alongside 17 further measures.

• Develop Stakeholder Communications; the sustainability steering group to organise this and direct communications up to the Board and down to staff and stakeholders.

• Implement production of an Annual Group Sustainability Report for publication of achievements, targets and programmes.

• Some Scope 3 elements are already recorded for Environmental reporting but commence full value chain engagement (Scope 3) and set and long-term targets

• Data gathering to take 6-9 months

• 3rd party verification of Scope 1 & 2 Measures (e.g., SBTI)

• Commission Feasibility Reports and business cases for medium term initiatives (from 12 months prior to planned start)

• Regularly review progress and this plan – at least annually

CARBON REPORTING

• GSF Car Parts’ Carbon Reporting is well managed in house. Historic data is detailed on the following pages.

• FY23 Emissions for the defined boundary totalled 10,615 tonnes and are detailed below.*

• FY21 Baseline emissions totalled 10,103 tonnes. Some transport emissions (Scope 3) have been captured. A full Carbon Accounting package with internal dashboards is to be adopted. Progress and claims to be publicly reported and verified through a credible 3rd party.

Baseline (trend) Baseline linear Starting point

BASELINE

Emissions and consumption data are detailed below. FY21 has been assumed as the baseline year.

TRAJECTORY

INTENSITY RATIO

Intensity ratios compare emissions data with an appropriate business metric or financial indicator.

GSF Car Parts has chosen to use tonnes of CO2e per £m turnover for its Intensity Ratio.

GSF Car Parts has made good progress in absolute carbon reductions and increased sales has seen a considerable intensity

SUSTAINABILITY HEALTHCHECK

The GSF Car Parts Net Zero team picked LKQ (Euro Car Parts) as a peer comparator organisation to benchmark against.

The team also completed a poll covering 5 dimensions crucial to Net Zero success.

The strengths radial below highlights areas of focus and the Sustainability Index compares to Euro Car Parts and a sector benchmark. GSF Car Parts is in line with its competitor and is focused on similar areas for improvement.

LKQs committed to achieving net zero greenhouse gas emissions by 2050 aligned with the 1.5 deg C target of the Paris Agreement.

• Publish a roadmap by 2025 to achieve 2030 target of 30% reduction in Scope 1 & 2 emissions

• Net Zero by 2050

All reduction targets are measured against a 2021 baseline.

Scope 1 & 2 Carbon intensity in 2022 was 3.68 tonnes CO2e per employee (for comparison GSF Car Parts was 4.16 on a like for like basis)

VISION & MISSION

Measures of Success

The first step in the framework is alignment of GSF Car Parts’ organisational purpose, strategy and business models. This chart highlights a Sustainability ’Vision’ and ‘Mission’ and supporting measures of success.

ADDITIONAL INFORMATION

NET ZERO FRAMEWORK

Our recommended framework derives from CISL’s ‘Rewiring the Economy’ plan and sets out the core components that are essential for any company looking to be fully aligned with net zero by 2050 at the latest.

Net zero strategy is an iterative, continuous improvement process in keeping with a typical Plan–Do–Check–Act model.

Consultus touch on the strategic commitment in earlier workshops but ultimately this rests with GSF Car Parts’ senior management and shareholders. The Group’s overall business strategy has been developed with sustainability at its core with each strategic theme embracing the ‘United Nations Sustainable Development Goals’.

We have used existing reporting where available and focussed on setting an initial plan. More comprehensive measurement is advised to ensure that commitments and the associated goals and targets are based on the best available science.

AIMS

Transform own business and valuechains

Shape markets and operating context to transform sector and drive systemic change

ACTIONS

THE CLIMATE EMERGENCY

Causes Greenhouse Gases (GHGs) in the atmosphere act to retain heat.

Increased GHG levels increase heat retention which causes global warming.

In 2021, the IPCC stated that current levels of warming are “unequivocally the result of human activity” and “proceeding at a rate that is unprecedented over many centuries to many thousands of years.”

Carbon Dioxide (CO2) accounts for c74% of GHG emissions. Methane (CH4) and nitrous oxide (N2O) contribute 17% and 6% respectively.

Global GHG emissions originally centred in the west, and whilst a lower proportion of emissions may now be produced in western countries, they continue to drive significant GHG emissions elsewhere, through global supply chains.

Environmental impact

Even small changes in global temperatures can have catastrophic effects – many of which are already starting to be felt, including droughts, soil infertility, rising sea levels, wildfires, flooding, storms and loss of biodiversity.

Keeping global temperature rises to 1.5C above pre-industrial levels can avert the most catastrophic impacts of climate change.

Above 1.5C, environmental impacts grow sharply in intensity with increasing temperature.

Temperatures have already risen by 1.2C above pre-industrial levels.

Click here to learn more

ENVIRONMENTAL IMPACT

Extreme heat and drought

The last seven years have been the warmest on record, and 2021 was one of the warmest years on record despite La Niña events.

At 2C there would be aridification across 20-30% of the world’s land area.

At 3C, Southern Europe and Africa would be in permanent drought.

Soil infertility

Topsoil is being lost 10 to 40 times faster than it is being replenished.

Since the mid 20th Century 30% of the world’s arable land has become infertile due to erosion, and 95% of earth’s land areas could be degraded by 2050.

Ocean acidification

25% of CO2 emissions dissolve in oceans, making them more acidic, damaging marine organisms and ecosystems.

Acidity has increased by 26% since the beginning of the industrial revolution and could hit 170% by 2100. Coral bleaching has increased 5-fold since the 1980s.

Fires

As with super-storms and hurricanes, climate change significantly increases the scale and frequency of wildfires.

E.g. In 2018, a major California wildfire destroyed 4,000 acres in one day and coined a new term ‘fire tsunami’, and ‘Campfire’, the deadliest in Californian history, destroyed several hundred square miles and killed dozens.

ENVIRONMENTAL IMPACT

Flooding (rainfall and rising sea levels)

Flooding has quadrupled since 1980 and doubled since 2004. It is now estimated that New York City will suffer ‘500 year floods’ every 25 years.

At 2C, there is irreversible loss of polar ice sheets, with the Arctic becoming practically sea ice-free in September in 2050.

At 3.2C, Miami, Dhaka, Shanghai, Hong Kong and 100 other cities would be flooded.

70% of the largest European cities have areas vulnerable to rising sea levels

Super-storms and hurricanes

Climate change changes the frequency, duration, timing, coverage and intensity of these events.

One example was the summer of 2018, when six hurricanes and tropical storms emerged on the radar at once, two of these alone killed 150 and wreaked $18bn of damage.

In 2021, 10 separate extreme weather events caused >$1.5bn damage each. .

Reduced nutritional value of crops

Warmer temperatures increase the amount of sugars in crops such as rice and wheat.

This means lower nutrient levels such as protein, iron, calcium and zinc, risking mineral deficiencies for millions, e.g. 175m with zinc deficiency, 122m with protein deficiency, and 1 billion with iron deficiency.

–

Vertebrate populations have fallen on average by 60% since the 1970s, exceeding 85% in some countries.

Insects could be extinct and coral reefs destroyed by the end of the century, with profound impacts on ecosystems.

The UK is one of ‘the most nature-depleted countries in the world’.

Reduced biodiversity

6th mass extinction

IMPACT ON BUSINESS

Failing to prepare for climate change – or being unable to clearly demonstrate positive action – could have a significant impact on the sustainability, performance and risk profile of businesses.

Challenges go across businesses and the relative importance will vary across industries. Global agencies and governments will be pushing a low-carbon transition (e.g. UK Government net-zero target) and so – quite apart from the moral imperative and customer pressure – businesses will have to cope with the significant impact of the low-carbon transition as well as the physical impacts that are already baked in. All challenges are worth considering in the context of competitor positioning even if they may not seem immediately relevant.

Operation

Supply chain disruption – inability to source materials on time, reliably and at a manageable price (WEF: disruptions up 29% since 2012).

Location of operations or services – ongoing viability challenge given heat, extreme weather events,politicalinstability and other impacts.

Insurance – reduced ability/increased cost to insure operations and services against extreme weather impacts.

Employee view – misalignmentwith employee demands for environmentalactionleading to reduced abilityto attract and retain talent.

Consumer & Customer Attitudes and Behaviour

Sector stigmatisation and Consumer Feedback: Consumer sentiment and preferences can change quickly due to raised awareness,e.g. response to Blue Planetplastics, and availability of other business models such as rental or shared ownership of items, e.g. car clubs.

Consumer Behaviour: Changes could manifest in reduction of overalldemand, or movingto competitor equivalent or substitute products with lower environmentalimpact (e.g. electric cars).

Investor Demands

Green investors are challenging organisations and pushing them harder to be more environmentally responsible – and this trend is expected to increase.

More institutional investors are challenging the long term viability of productsand business models. They are expecting more focus and diligence from executives,including scenario analysis and climaterelated disclosure of Governance,Strategy, Risk Management and Metrics and Targets (Source: TCFD). E.g. Schroders have voted on over 60% more climate change and renewable energy shareholder resolutionsin each of 2015-2017 compared to 2010.

Regulatory, Policy and Legal

Stricter and more demanding controls – in April 2019, the UK governmentupdated its list of civil penalties for breaches of climate change related regulations.

Wider reaching remit with greater impact –e.g. carbon price is set to rise significantly and will sooncover a quarter of globalemissions. With higher costs,demands could fall, demand elasticity could lead to c.10% decrease in profits (Schroders).

Risk of litigation for breaches or lack of progress:

In 2018, major litigation cases included Exxon Mobil, the Dutch government, the US government and RWE. Cases weren’t all upheld, but illustrate a turn in sentiment against under performance or apathy.

NET ZERO PATHWAY TOOL

This engagement was delivered through a combination of online questionnaires, multi-stakeholder workshops, site audits, polls and the proprietary Consultus Net Zero Pathway tool.

With organisations at different stages of their net zero journey the Net Zero Pathway tool delivers a clear and understandable bespoke pathway for GSF Car Parts Ltd to achieve its net zero goals within defined timelines.

This unique solution is sector, territory and technology agnostic and was awarded ‘Best Technology Business Solution’ at the 2021 Energy Live News awards.

The tool supports the engagement by providing a step-by-step application to:

• Understand trends and baseline (including current activity)

• Establish all stakeholder ambitions

• Build specific Action Plans and Strategies

• Identify appropriate demand-led initiatives

• Support investment decisions

GSF CAR PARTS

WHO WE ARE

Company Name: GSF Car Parts Ltd

Sector 45320 - Retail trade of motor vehicle parts and accessories

HQ location Minworth, Sutton Coldfield, UK

Fiscal year March

Territories included 1 (for this engagement)

Total locations 180+ (7 audited for this engagement)

Total area (sqm)

Net Zero Team

Martin Gray Chief People Officer

Shaun Kelly Operations Director

Mark Donnelly Head of Procurement

Rupa Bhojani Central Operations Manager

About GSF Car Parts Ltd

GSF Car Parts is one of the UK’s leading motor factor businesses with branches nationwide supplying thousands of automotive trade and retail customers with original equipment quality parts through unrivalled levels of customer service.

Through cutting edge technology, strong relationships with global manufacturers and a highly skilled workforce, we provide excellent customer service at every turn that helps to keep the UK’s vehicles on the road.

ATTITUDES TO SUSTAINABILITY

An anonymous stakeholder poll was carried out to provoke discussion about GSF Car Parts’ approach to sustainability to date.

THE VALUE CHAIN

To fully understand and manage climate risks and opportunities, a full value chain perspective is essential. From a climate-action perspective, the value chain is typically categorised into the three ‘Scopes’, outlined opposite: This report specifically look at GSF Car Part’s Scope 1 and 2 emissions.

Covers direct emissions from sources owned or controlled by the company. This includes emissions from company-owned or operated facilities and vehicles.

Covers emissions from the generation of electricity purchased by the company.

Refers to all other indirect emissions within a company’s value chain.

Despite being less directly related to a company’s main activity, these emissions can make up a significant portion of a company’s impact on the climate. Scope 3 can be broadly grouped into two categories:

Upstream emissions from activities involved in the creation of a company’s services or goods. This includes emissions from employee travel and commuting to work, and emissions in the supply chain from the production of purchased goods and services the company uses or sells.

Downstream emissions occur from the distribution or use of a company’s goods including the disposal of products. If a product indirectly consumes energy during use, for example because it needs to be heated by another appliance, including these emissions in Scope 3 is optional.

Scope 1

Scope 2

BOUNDARY

A key focus of COP27 has been the drive for concerted action as the world continues to fall short of the reductions needed to keep global warming to no more than 1.5C.

Current estimates suggest that current commitments and progress set us on a path to 2.8C - resulting in a climate catastrophe.

New guidance was published during COP27 including reports from ISO & the United Nations High Level Expert Group (HLEG).

All scopes (1,2 & 3) have to be included.

All boundaries (territory, sectoral, organisational, portfolio and asset) have to be considered.

GSF Car Parts need to make a clear commitment to:

• Achieve its own interim and long-term net zero targets

• Support global achievement of net zero

• Ensure alignment between policy and action

GSF Car Parts has defined its interim boundary as the global operation and includes Scope 1 & 2

GSF Car Parts’ interim target is to remove all GHG emissions for this defined boundary by 2030

GSF Car Parts’ long-term plan is to achieve climate

neutrality for its entire value chain (Scopes 1,2 & 3) by 2050

VALUE CHAIN ENGAGEMENT

Scope 3

GSF Car Parts interim plan focuses on Scope 1 & 2 to 2030.

GSF Car Parts have indicated full value chain engagement (and longterm net zero targets) are a secondary phase (to 2050)

Consultus recommends the following steps to develop this plan:

Screening and boundary setting

Determining which of the 15 Scope 3 Categories apply to the organisation and which assets in your portfolio are included in your Scope 3 boundary.

Data collection strategy

Understanding what data to collect and how best to collect it, whilst complying with the GHG Protocol requirements.

Baseline calculation

Sub-categorisation of emission sources into supply chain streams identifying the greatest sources of emissions.

Develop a full Scope 3 footprint of your selected baseline year.

Target setting

Setting meaningful targets that are modelled against the SBTi requirements and are aligned with a 1.5C global temperature rise.

Business-As-Usual Modelling

Business as Usual Modelling (BAU) is expected trajectory of emissions produced by your full value chain if no action is taken to mitigate their production.

Reduction Strategy creation

The Reduction Strategy should highlight the areas in your organisation where you will need to act and the methodology you need to take to achieve the reductions.

External verification ready

Scope 3 methodology must meet the requirements of the GHG Protocol and used in the verification process.

Consultus advocates the most widely recognised highest international standard of carbon footprinting verification – the Science Based Target initiative (SBTi).

INITIATIVES

ADDRESSING SCOPE 1 & 2

Mitigating Scope 1 & 2 emissions is based around both low carbon alternatives as well as energy efficiency. Organisations using 100% renewable energy should still do all they can to minimise consumption.

Mitigating Scope 1 & 2 emissions requires the implementation of supporting policies and, in some cases, a different approach to how the organisations structures itself and operates.

ADDRESSING SCOPE 3

Mitigating Scope 3 emissions requires new business models that drive low carbon innovation and the circular economy.

Much broader collaboration with stakeholders both within and outside the value chain.

Focus on investment emissions, removals/offset strategy and a focus on the broader impact of the organisation.

ADDRESSING SCOPE 3

GSF Car Parts Ltd has engaged Consultus Sustainability to carry out a full baselining of its Scope 3 emissions, starting July 2024. This will involve collating data for the relevant Scope 3 categories:

This engagement is forecast to last 6 – 9 months and will result in a set of recommendations as to how to address these emissions in line with GSF Car Parts Ltd’s ambition to be fully Net Zero by 2050.

APPROACH TO MEASURES

The Net Zero Pathway tool models an adjusted baseline taking into account ‘contributors’ and ‘detractors’

A contributor to net zero could include rationalising the organisation’s property portfolio or promoting remote working.

A detractor could be increased production of a carbon intensive product line or expansion into other territories.

For GSF Car Parts Ltd, portfolio expansion in 2024 will lead to additional energy consumption and therefore may be a detractor to reaching its interim target.

This adjusted baseline creates a ‘Business as Usual’ trajectory to model the impact of potential initiatives.

These initiatives fall into 3 categories:

Client Measures

Initiatives in progress or committed to

Audited Measures

Initiatives identified from actual site audits

Generic Measures

Initiatives modelled on the client's building portfolio and benchmarked energy efficiency

SITE AUDIT(S)

Consultus was appointed to carry out preliminary feasibility investigations to assess the potential implementation of energy efficiency and carbon technologies measures.

Project Goals

• Explore significant areas of energy consumption & CO2e emissions from GSF Car Parts buildings

• Consider an energy management strategy tailored to the building environment and its operation

• Identify & investigate potential energy & sustainability projects

• Consider the potential to install energy efficiency and CO2e reduction technologies on-site

Chester

Leeds South

Coventry

Birmingham

Nottingham

SUMMARY OF AUDITS – IDENTIFIED MEASURES

Site Details

GENERIC MEASURES

Generic measures are shortlisted from a database of c200 initiatives and based on the building portfolio and benchmarked energy efficiency. These measures were identified during Workshop 2 and prioritised accordingly in Workshop 3. A combination of measures are modelled to develop the net zero plan.

Measures fall into the following categories:

Gateway Measures

Minimal entry level of activity to unlock related supplementary measures. (Categories are Data Reporting, Cultural Engagement, Site Optimisation and Control Systems)

Actions

Shortlisted generic measures as outlined above

Offsets

PPA’s, Certificates and Carbon offsetting

Client Initiatives

Client and Audited measures detailed on the previous page

Grid Benefits

The projected benefit of grid decarbonisation

Agreed investment amounts relate to the ‘addressable portfolio’ and project start dates as agreed with the workshop participants.

Measure costs are based on Spons estimating cost guides and measures identified using CIBSE TM46 and Energy Benchmarking Tool. Behavioural measures use Carbon Trust estimates and Consultus data from live engagements.

Energy costs are modelled using Consultus’ proprietary long-term price forecaster.

SPP’s are calculated from Project Start date until Net Zero target date.

Ongoing operational costs are indexed accordingly.

Note – all generic measures are approximate and detailed feasibility reports are recommended.

ACTION MODELLER

TIERS OF GREEN

For consideration

Although GSF Car Parts Ltd purchases fully carbon-free electricity from EDF Energy, this is considered only a low-grade measure for Net Zero ambitions. Future regulatory changes may determine that energy bought in this way cannot be considered carbon neutral and therefore it is necessary that a Tier 2 or Tier 3 approach is adopted in the coming years.

A Power Purchase Agreement allows electricity to be bought from a named renewable energy generation source – this allows GSF Car Parts to declare that it has invested in the viability of a specific renewable asset.

PPA agreements have a medium- to longterm tenure but are worth investment on the basis of the “additionality” they demonstrate – that GSF Car Parts is dedicated to future investment in the UK renewables industry.

On-site generation is Tier 3 as it requires direct investment in GSF Car Parts’ own renewable assets. Although the most expensive option initially, these do not have to be funded through CAPEX, with many other finance models available.

ACTION PLAN

STAKEHOLDER COMMUNICATION

Broad based communication and engagement across the full range of stakeholders is vital to embed changes. This will also increase pressure on others in the sector to act – and could lead to commercial/competitive advantage if you are an early mover.

Areas of action could include:

 Employees

• Build awareness of the importance/urgency of action to address climate change

• Highlight the actions they can take to make a difference (e.g. recycling, travel, etc.)

• - Introduce incentives to encourage people to positively engage

 B2B Customers/Suppliers

• Build awareness of the action you are taking to tackle climate change and how working with a low-carbon partner improves their GHG credentials

• Encourage them to work with businesses that are taking decisive action on the above

• Provide information and guidance on how to handle/use/dispose of your products and services in a way which minimises GHG impact

 B2C Consumers

• Build awareness, encourage them to buy from businesses taking decisive action on climate-change – and give guidance on how to use/handle/dispose of products/services

 Investors

• Build awareness as in B2B whilst encouraging investment in low GHG and climate-change prepared businesses

 Influencers

• Engage with news agencies and organisations showcasing climatereadiness and positive stories about the steps you have taken and the results you’ve achieved in GHG reduction.

• Become accredited where appropriate (e.g. GHG reduction targets with SBTi). This increases pressure for others to act and reinforces your credentials with customers, consumers and investors

 Policy makers

• Encourage clear direction of policy to transition to the low-carbon economy

• Promote incentivisation to businesses taking action to manage climate change risk

The following pages highlight outputs from the Net Zero Pathway tool, and a proposed Charter, that could be incorporated in internal and external communications.

NET ZERO CHARTER

GSF Car Parts acknowledges the part they must play in the reduction of greenhouse gas emissions in order to achieve the UK Government’s 2050 Net Zero target.

In response, GSF Car Parts have set themselves an interim net zero target of 2030. This involves reducing the current scope 1 and 2 footprint of 10,615 tonnes CO2e over the space of 6 years.

Progress towards this target will be monitored through a rigorous process and will be held accountable by Martin Gray, CPO.

In order to ensure that this is delivered to the required standard, key roles and responsibilities have been set out below:

• Up to date base-line reporting to ensure net zero trajectory is up to date

• Annual emissions reporting

VISION & MISSION

Measures of Success

The first step in the framework is to align organisational purpose, strategy and business models. This chart highlights a Sustainability ’Vision’ and ‘Mission’ and supporting measures of success.

FUNDING OPTIONS

Typically, organisations fund initiatives through a mix of CapEx and OpEx but there are an increasing number of alternative funding arrangements for low-carbon projects.

Energy-as-a-service (EaaS)

Energy-as-a-service is a funding approach where energy users pay for an energy demand reduction service without having to make any upfront capital investment.

EaaS models usually take the form of a subscription for installed assets and services typically owned by a service company.

Instant energy savings can be realised from day one with a portion of the energy savings applied towards the monthly EaaS charge.

Energy Performance Contracts (EPC)

Similar to EaaS, an Energy Performance Contract is an alternative form of finance capital which allows funding energy initiatives from cost reductions.

Under an Energy Performance Contract arrangement an external organisation (ESCO) implements a project to deliver energy efficiency. The cost savings achieved from the energy saving initiative is then used to repay the costs of the project. The ESCO will not receive payment unless the project delivers the targeted energy savings.

Typically, the ESCO arranges investment financing and assumes responsibility of management and control of energy consumption.

Power Purchase Agreement (PPA)

A Power Purchase Agreement (PPA) refers to a contractual agreement between two parties, typically a renewable power producer/developer and an end user customer.

The developer arranges the design, gains the necessary permissions and manages the installation of the renewable energy system on the customer’s site at little or no upfront cost.

Whilst under contract, the customer receives a significantly reduced electricity tariff which offsets the costs from their energy supplier. The developer receives income from the sale of the generated electricity

GSF Car Parts has indicated a preference to self-fund initiatives

Indicative PPA prices to be provided for renewable projects

CONCLUSION

This report outlines the initial net zero pathway for the stated boundary and a possible route to next zero. However, there are several options available to GSF Car Parts which will evolve over time and GSF Car Parts will keep the pathway under annual consideration.

Pages 22 to 32 outline the stages to address decarbonisation across all scopes but in summary, GSF Car Parts will continue reducing emissions by alternative sourcing of energy and through a series of generic measures, including a rigorous Cultural Engagement programme. The transition to renewable energy sources (on-site, near site and virtual) is a critical path. The Group has already made commitments to electrify transport usage.

As the Group move into broader Scope 3 the circular economy plays a part by increasing recycling, reducing waste and reviewing the production life cycle.

The on-site generation initiative will be rolled out and the identified audited measures should be implemented. Full feasibility reports should be commissioned for the significant generic.

The plan includes an element of all the above midway through the timeline. A significant commitment (and investment) is needed at this stage, but a hybrid solution may be the most economically viable. Clearly the availability of newer technologies will be more apparent at this stage and future pathways will reflect this.

This initial plan relies on a significant amount of offsetting in the final year of the plan – this is largely attributable to GSF Car Parts’ continued use of gas as a fuel source within its portfolio.

The target for future iterations is to reduce this ‘last resort’ measure.

THE WORLD IS GETTING WARMER

Source: University of California Berkeley

PROJECTED EMISSIONS & WARMING

Source: Climate Action Tracker 2022

The environmental impacts are significant but sensitive to levels of change and the risks associated with 1.5°C are significantly less than those at 2°C.

Source: WRI/IPCC 1.5° Report

ADDITIONAL INFORMATION

The Financial Stability Board created the Task Force on Climate-related Financial Disclosures (TCFD) to improve and increase reporting of climate-related financial information

The Science Based Targets initiative (SBTi) drives ambitious climate action in the private sector by enabling organizations to set sciencebased emissions reduction targets

CDP is a not-for-profit charity that runs the global disclosure system for investors, companies, cities, states and regions to manage their environmental impacts.

B Corp Certification is a designation that a business is meeting high standards of verified performance, accountability, and transparency on factors from employee benefits and charitable giving to supply chain practices and input materials

ACTION MODELLER NOTES

GSF Car Parts specific notes (all portfolio wide unless stated)

Section Item Measure

Gateways E1 Data Reporting

Gateways E2 Cultural Engagement

Gateways E3 Site Optimisation Audits

Comments

Sub-metering in place. Energy reporting and dashboards added below.

Actions 1 Energy Management & Dashboards

GSF Car Parts Ltd to consider a full employee engagement plan.

Report is based on a relatively small sample; consider additional site audits to identify further measures.

Basic energy management reporting to complement smart metering

Actions 2 Virtual Energy Manager Alerts and ‘call to actions’ from metering solution

Actions 3

ACTION MODELLER NOTES

GSF Car Parts specific notes (all portfolio wide unless stated)

Removed due to planning consents required at modelled size. (Future consideration) Actions 8 As per previous proposal for Gourock.

Offsets Phased with CHP installation at likely market availability.

Offsets PPA

Offsets Certified Carbon Offsets

Basket VPPA solution expected for GSF Car Parts volume within the year. Recommendation is 1/3 of baseload.

Residual emissions offset in final year in initial plan.

ABOUT CONSULTUS SUSTAINABILITY

PART OF THE CONSULTUS GROUP

Natalie Dunbar Principal Consultant

Steve Atkins Principal Consultant

Steve Lankfer Head of Projects

CONSULTUS INTERNATIONAL - HISTORY

1994

The Energy Brokers Ltd is incorporated

Procurement services are launched

1997

First energy consortium is introduced

2003

Flexible Contract Management launches. European purchasing begins

2015

Engaging with the water market begins. Management buy-out by The Consultus International Group

2017

Consultus

International acquires PEMXQ Limited

2021

Net Zero services established as core business strategy

1995

Engaging with the gas market begins

1999

First version of the myEnergy client portal

2008 Compliance service introduced

2016

Assured Energy launches (sister SME company)

2018

Consultus rebrands and launches new client-focused services 13TWh of energy under management

CONSULTUS INTERNATIONAL - CREDENTIALS

c. 180 staff

c. 1,500 clients

OUR CREDENTIALS

c. 40,000 supplies

52 16.5TWh + energy

£2 billion+ portfolio

1st January 2024 to 31st December 2024

Introduction

Streamlined Energy and Carbon Reporting (SECR) was first introduced in 2019, as legislation to replace the Carbon Reduction (CRC) Scheme. SECR requires obligated companies to report their energy consumption and associated greenhouse gas emissions within their financial reporting for Companies House. Organisations will also need to report on any energy efficiency measures and state emissions with reference to an intensity metric. The requirements are similar to the requirements of the Mandatory Greenhouse Gas Reporting framework previously in place for quoted companies. However, there are changes to the reported information for quoted companies too.

What needs to be reported under SECR?

Quoted Companies are required to report on annual global emissions from activities for which that company is repsonsible for, including the combustion of fuel and the operation of any facility; together with the annual emissions for the purchase of electricity, heat, steam, or cooling by the company for its own use. At least one intensity ratio with documentation. Previous figures for energy use and GHG emissions. Methodology used in calculations of disclosures.

Large Unquoted Companies and large LLPs are required to report on UK energy use (to include as a minimum: purchased electricity, gas and transport); associated GHG emissions; at least one intensity ratio with documentation; previous year's figures for energy use and GHG emissions; and the methodologies used in the calculating emission disclosures.

Objectives of this report

It has been identified that GSF Car Parts Limited are a Large Unquoted company and are therefore required to disclose energy and carbon information in their accounts and reports, including:

• UK energy use (as a minimum gas, electricity and transport, including UK offshore area)

• Associated greenhouse gas emissions

• At least one intensity ratio

• Previous year’s figures for energy use and GHG emissions.

• Methodologies used in calculation of disclosures.

• Information about energy efficiency action taken in the organisation’s financial year.

The relevant report must state the annual quantity of emissions in tonnes of carbon dioxide equivalent (CO2e) resulting from the total UK energy use from electricity, gas and transport.

Consultus International have utilised all verifiable data that has been made available to us however in the rare occasions where this has not been possible we have estimated data by using approved approaches as recommended in the SECR Guidelines such as direct comparison, pro-rata extrapolation or benchmarking.

Energy and Carbon Report

Intensity Metric

Intensity ratios compare emissions data with an appropriate business metric or financial indicator. When presenting the detail of your KPIs, they should be expressed in absolute terms but it is also helpful if you use a normalising factor in reporting your data. The organisation has chosen to use Tonnes of CO2e per £million Revenue for its Intensity Ratio.

Energy Efficiency Action

During 2024 GSF Car Parts limited saw a carbon saving of 39 TCO2e. This impressive saving has been achieved through the rollout of LEDs and smart meters across their portfolio, with all new sites now being required to have LEDs in place. The use of smart meters allows for better data recording and with 15 new sites opened in 2024 and 10 planned for this year, the requirement of LEDs will have furter impact on savings. GSF have further created savings through a new National Distribution Centre which saw the closure of 2 older, lessefficient sites. The new NDC is equipped with a Building Management System aiding in utility control and has further aims to reduce it's Scope 3 emissions through redduction of deliveries and centralised sourcing. Asides from building infrastructure, GSF has also reduced their emissions from transport, with the MPG increasing from 43.9 in 2023 to 48 in 2024.

Quantification and Reporting Methodology

The Group has taken guidance from the UK Government Environmental Reporting Guidelines (March 2019), the GHG Reporting Protocol - Corporate Standard, and from the UK Government GHG Conversion Factors for Company Reporting document for calculating carbon emissions. Energy usage information (gas and electricity) has been obtained directly from our energy suppliers and half-hourly (HH) data, where applicable, for the HH supplies (there was no estimation profiling required). For supplies where there wasn't complete 12 month energy usage available, flat profile estimation techniques were used to complete the annual consumption. Transport mileage data was obtained from expense claims submitted for our company cars and grey fleet. Due to having on site charging points and to avoid the double counting of emissions, the assumption was made that 50% of EVs/Hybrids were charged on site and 50% charged off site. CO2e emissions were calculated using the appropriate emission factors from the UK Government GHG conversion information.

Tonnes CO2e per £m Turnover

Other Fuels

Emissions from combustion of fuel for stationary machinery & engines:

GSF Car Parts ESG Report May 2025

GSF ESG Update May 2025

CONTENTS

About GSF

ABOUT GSF CAR PARTS

GSF Car Parts – Your partner in the aftermarket

ESG AT GSF CAR PARTS

A MESSAGE FROM OUR CHAIRMAN & CEO

ESG AT GSF CAR PARTS

OUR 8 STRATEGIC GOALS

KPI TRACKER – SNAPSHOT

DASHBOARD – SNAPSHOT

OUR 2024 OBJECTIVES

People

KEY IMPROVEMENTS & MILESTONES 2024

Environment

Social

Governance

Procurement

ALIGNMENT TO THE UN GLOBAL COMPACT

ALIGNMENT TO THE UN SDG’S

OUR ENVIRONMENTAL COMMITMENT

IN FOCUS: ENVIROMENTAL

IN FOCUS: ENVIROMENTAL

OBJECTIVE ACHIEVED? COMMENT

ENVIROMENTAL TARGETS 2024

GSF CAR PARTS CARBON EMISSIONS AND NET ZERO BY 2050

OUR EMISSIONS

CASE STUDIES

VOK Bike Trial (London)

Cutting Carbon with LEDs and Smart Meters

Transforming Distribution Through a New National Distribution Centre (NDC)

ESG Impact Highlights:

IN FOCUS: SOCIAL / PEOPLE

IN FOCUS: SOCIAL / PEOPLE

Empowering Our People, Enriching Our Communities

GSF IN COMMUNITIES

IN FOCUS: SOCIAL / PEOPLE

Our Goals

IN FOCUS: SOCIAL / PEOPLE

PEOPLE TARGETS 2024

CASE STUDIES

Case Study: Looking after our People

Supporting Charitable Causes

Empowering Our People Through Training and Development

IN FOCUS: GOVERNANCE

IN FOCUS: GOVERNANCE

MEET THE ESG COMMITTEE

IN FOCUS: GOVERNANCE

GOVERNANCE TARGETS 2024

CASE STUDIES

Embedding ESG into GSF Car Parts’ Business Culture

Strengthening ESG Data for Investors and EcoVadis at GSF Car Parts

IN FOCUS: PROCUREMENT

IN FOCUS: PROCUREMENT

IN FOCUS: PROCUREMENT

SUSTAINABLE PROCUREMENT TARGETS 2024

CASE STUDIES

Auditing “Own Brand” Suppliers – Upholding Standards and Ensuring Accountability

Building Resilience and Value through Sustainable Procurement

OUR 2024 IMPACT

Environment & Sustainability

Compliance/Security

OUR 2024 IMPACT

OUR GOALS FOR 2025

SCOPE POTENTIAL TO DEVELOP ESG INTO A CORE COMMERCIAL LEVER

SCOPE POTENTIAL TO DEVELOP ESG INTO A CORE COMMERCIAL LEVER

OUR OBJECTIVES / TARGETS FOR 2025

OUR OBJECTIVES / TARGETS FOR 2025

STRATEGIC PILLARS FOR 2025

Environment

People

Governance

Sustainable Procurement

APPENDICES

STRATEGIC PILLARS FOR 2025

Environment

People

Governance

Sustainable Procurement