KJ Tait ESG Impact Report 2023

Our KJ Tait Impact Report

2023

Closing the performance gap in buildings

Paul Miller Director

Foreword

2023 was a year of significant progress across the business as we continued to work on some of the UK's largest commercial developments. We have been enhancing our experience on laboratory projects that have bespoke requirements with major projects at Victoria House and Tribeca to name two. We also continue our work around commercial offices, industrial, residential, heritage and education.

What has been particularly apparent over the last 12 months is the requirement for each project to have impeccable ESG credentials. For office developments, we have become adept at providing the NABERS Design for Performance Framework, this is one programme that we are using to Close the Performance Gap between

design and operation. For Clarendon House in Edinburgh which has a Target Rating of 5 Stars, we are now instructed to provide the operational energy monitoring. Having the Design Team involved at operational stage of a building is where we see real added value to reducing carbon emissions and ensuring ESG targets are met. Alongside this, our Facilties Department have been instructed to provide consultancy services to ensure the commitment to excellence for the refurbished building is maintained throughout the life and use of the property.

For the company's own ESG journey, we achieved ISO14001 accreditation in 2022. For this accreditation, we have been tracking our

"We want our company to be a force for good in the world and have therefore enhanced many of our policies so they now reflect where we want to be as a company."

carbon emissions with plans in place to reduce them by at least 5%. For this year, we have gone further by having our emissions verified by an external body. Planet Mark received all our energy billing and travel data and calculated our carbon footprint at 68.8tCO2. We have subsequently offset these emissions through Gold Standard to become a Carbon Neutral company.

Throughout this year, we have been working on our B Corp submission with an external consultant. This has led to a fundamental review of our working practices and record keeping around Environmental, Governance and Social Value. Aspects such as increased time off for our staff to work within the community

and strengthened parental leave polices has allowed us to align with the ethos of B Corp.

We want our Company to be a force for good in the world and have therefore enhanced many of our policies so they now reflect where we want to be as a Company. We have submitted our Impact Assessment in Q1 2024 and expect to be accredited by Q3 2024.

This is our first ESG report, I hope you enjoy reading as much as I did writing it, and discovering where we are as a Company on our ESG journey.

Our Vision

Is to plan for a better future, and capture the reality we want to create.

Engineer better buildings through innovation and technology

Our Mission

Is the commitment we make on delivering our purpose of closing the performance gap in buildings. In order to achieve this, we must:

Continuously improve the way we collaborate and deliver a fully integrated design service

Stay ahead of the technology curve, learning through experience and to continually upskill ourselves

Share knowledge and expertise with our Clients to move the industry forward a promote a change

Company Numbers

As the industry continues to evolve, so to does our company. Over the previous 12 months we have seen our staff numbers grow from 87 members of staff to 100. As a result of this growth, we have moved into a larger premises at Canada House in Manchester. Our office coverage throughout the UK allows us to react to any challenge in the most efficient way possible.

Our attrition rate for 2023 was 9.58%, this is significantly below the industry average, we are proud of this achievement. The retention of our senior management team remained strong demonstrating to our Clients that we are a safe pair of hands to deliver all projects great and small.

Due to our growth, we have benchmarked our energy figures from our offices and carbon emissions overall against the number of staff in 2022 and 2023. This has resulted in an overall reduction of 5.1% in energy demand and 5.6% in carbon emissions in the last year.

Throughout 2023, we have worked on our B Corp submission and submitted this in Q1 2024. There has been a lot of work in updating our policies to comply with the requirements for B Corp and gathering evidence that supports our submission.

The structures that we are putting in place now will make KJ Tait a more equitable business, which we hope will make us a force for good within the industry and beyond.

50 years in business

5% reduction in carbon emissions in last year

NPS Score of 41 for staff recommending us as a great place to work

6 offices throughout the UK

£14,982 in charity donations

A growing company of 100 staff

Changing to a more equitable company

Staff attrition Rate of 9.58%

50 years of KJ Tait

We celebrated our 50th anniversary in 2023 and had a special celebration for all the staff and their partners in March. We marked the occasion with a black tie dinner and dance at the National Museum of Scotland in Edinburgh. It was a night to remember with a piper piping all the guests into the venue for a drinks reception before speeches, which was followed by a wonderful dinner.

There was an extremely high turnout of staff from all of our six offices, and we

were delighted that Ken was able to attend venue was spectacular, to celebrate our 50 had donned their glad night to remember. The were first class and went to make it extra special.

After dinner there was to mingle and then the their first note and we away. Our non Scottish

Ken Tait, our founder, with his wife. The spectacular, a unique location years, and everyone glad rags to make it a The caterers and staff went out of their way special. was a little time for guests the ceilidh band struck we danced the night Scottish colleagues took it

all in their stride and were extremely keen to learn the steps – and they absolutely gave it their all!

It was a memorable night, a time to enjoy but also to reflect on where KJ Tait started all these years ago, and to acknowledge the journey we have been on from 1973 –2023.

Here’s to the next 50 years!!

Making Our Business a Force for Good

B Corp Certification is a designation that a business is meeting high standards of verified performance, accountability, and transparency. These are on factors such as employee benefits and charitable giving to supply chain practices and input materials. In order to achieve certification, a company must:

• Demonstrate high social and environmental performance by achieving a B Impact Assessment score of 80 or above and passing our risk review.

• Make a legal commitment by changing their corporate governance structure to be accountable to all stakeholders, not just shareholders.

• Exhibit transparency by allowing information about their performance measured against B Lab’s standards and to be publicly available on their B Corp profile on B Lab’s website.

Over the last year, we have been working on our submission to B Lab with our B Corp consultant, Seismic. We recently submitted our assessment to B Lab for verification in Q1 2024. Recognising the queue of companies awaiting assessment, we hope to be accredited by Q3 2024.

"We submitted our B Lab assessment in Q1 2024"

Environmental

Our Timeline to Net Zero Carbon

Tracking of our carbon emissions began in 2020, in response to a greater focus on sustainability. This included all our business travel booked centrally and our managed office facilities

ISO14001 accreditation resulted in the Company updating policies around sustainability to better drive a reduction in carbon emissions. Through this accreditation, we have set objectives for each year.

For the first time, we have submitted our energy, waste and water data for verification by an external body. Planet Mark will calculate our carbon footprint from this raw data. We have committed to offsetting our emissions using accredited offsetting schemes to achieve Carbon Neutral status

Baseline Emissions

Our second year of submission will be our baseline emissions for our science based targets. Recommendations from Planet Mark will be incorporated into our operations, this to improve the accuracy of our data.

2024 20252030

Science Based Targets

We have committed to reducing our carbon emissions by 5% each year from the 2024 baseline emissions. This target will be across all of our operations using the data supplied to Planet Mark each year.

Net Zero Carbon

Through the SME Climate Hub, we have committed to achieving Net Zero Carbon by 2030. For our offices, we will use the current UKGBC guidance as to what constitutes a Net Zero Carbon building.

2030

The breakdown of our emissions shows that heating our offices through gas fired boilers and air travel were the two most significant contributors to our carbon footprint over 2023.

Through various accreditations such ISO14001, Planet Mark and B Corp, we have plans in place to reduce our carbon emissions from our workplaces. Each office has a budget for improvements and we have appointed an Energy Champion within each to drive energy efficiency forward. The Energy Champions are responsible for identifying areas of energy wastage and capital projects that should be carried out as well as meter recording.

Our Edinburgh office having undergone works in the past 12 months to improve the heating system by installation of a new boiler along with a balance of the radiators. Our ultimate aim is to decarbonise each office heating system in line with Best Practice. We recognise the challenge of this with our three solely occupied buildings being period townhouses where technical constraints may become apparent alongside objections from local planning authorities.

For our shared spaces, we are continuing to work with our Landlords to understand measures that could be put in place to reduce energy and decarbonise. We have completed a feasibility assessment for the installation of a heat pump in place of the boilers for our Manchester office at Canada House.

Whilst air travel contributed the most to travel emissions, we used trains significantly more than air travel in 2023 compared to 2022. in 2023, our staff were encouraged to take the most sustainable method of transport possible, irrespective of price. We have updated our Sustainable Transport Policy to reflect this and expect these savings to increase in subsequent years.

We have set Science Based Targets to be achieved over the next year

We have set our targets for 2024 on the basis of what we feel is realistic. For example, we have a reduction of 5% in energy for our offices. To help drive and achieve this, we have appointed Energy Champions in each of the offices to identify energy efficiency and capital investment projects that should be carried out to help meet our target. The plans for each of the offices will be reviewed on a monthly basis so that improvements can be implemented as quickly as possible.

For water, we are targeting a 5% improvement. We have developed this target using data from our Glasgow office refurbishment where we have installed low volume/dual flush toilets.

After a review of our waste, we found that the greatest contributor to our landfill waste is paper towels and coffee cups, we plan to reduce both of these through hand driers and reusable coffee cups respectively. This has helped inform our target for the coming year.

Our Plan to Engage Staff Workshop Description

Sustainability Plan Workshop

Net Zero Carbon Essentials

A three-hour session which lifts the lid on operational carbon emissions, supporting a brainstorming session to understand impacts and consider actions that can make a material difference. Participants leave with a one-year Sustainability Plan with SMART targets, roles and responsibilities.

A three-hour CPD accredited workshop which introduces the fundamentals of net zero carbon and what it means for a business to embark on a Net Zero journey.

Net Zero Masterclass Designed for senior leaders and board members, this short workshop covers the Net Zero terminology, legislation and frameworks and presents an opportunity for leaders to discuss the company’s net zero journey.

Business Sustainability Essentials

A three-hour CPD accredited workshop covering the basics of business sustainability and the role our Employees can adopt in driving change from within.

Supplier Sustainability Workshop

Invite our Suppliers to learn about and get involved with our sustainability journey and net zero ambitions. We facilitate and build content particularly around Scope 3 emissions.

Our International Influence

After verification of our carbon emissions 2023, we have made the commitment

Our staff chose three diverse projects to support. By offsetting our emissions, we have achieve Carbon

emissions through Planet Mark for commitment to offset them fully. projects from the Gold Standard for us emissions, we are proud to announce Carbon Neutral status.

By rehabilitating and installing critical water infrastructure within communities and committing to ensure that it is maintained and tested for water quality over the project lifetime, the project reduces the risk of water borne illnesses and the need to boil water for purification, which exposes households to hazardous air pollution. This saves thousands of tonnes of firewood per year and reduces CO2 emissions. By implementing a WASH campaign and training, the project also improves hygiene and sanitation practices within the communities.

As the burden for collecting water and firewood for purification falls disproportionately on women and children, by installing and rehabilitating boreholes the project reduces the poverty of women and children and allows them to spend the time saved on other activities.

• Provision of safe clean water, especially in rural areas

• Positively impacts thousands of people in the project area, especially women and children

• Reduction of firewood

• Reduced time spent on collecting wood and water

• Reduction in the risk of waterborne illness

BaumInvest Mixed Reforestation in Costa Rica

Land use activities + Nature based solutions

23tCO2 offset

£1,002 payment

The reforestation project of BaumInvest in Costa Rica combines premium quality standards of a recognised forest carbon offset project with multiple ecological and socio-economic benefits for local communities and the environment.

BaumInvest has established a remarkable ecologically and socially sound reforestation project with predominantly native tree species in Costa Rica. Since the start of the project in 2007, an area of 2,115ha of pastureland, previously used for extensive cattle ranching, has been under sustainable management. 1,280ha have been successively reforested in near natural mixed forest plantations with mainly native tree species. In total, more than one million trees were planted using a variety of 17 different tree species. The plantations are managed as a continuous forest cover. Our reforestation model comprises a mixture of pioneer trees, medium growth and slow growth, shadow trees.

The reforestation farms of BaumInvest are spread between five sites in the Central North of Costa Rica. About 25% of the total project area consist of remaining old-growth and secondary forest and wetlands, some of them classified and managed as high conservation value forests (HCVF) according to the Forest Stewardship Council (FSC). These areas serve as habitat and biological corridors for many rare and endangered wildlife species of the diminishing Atlantic lowland rainforests in Central America, in particular the project area La Virgen located in close vicinity of the Braulio Carrillo National Park.

By constantly monitoring biodiversity, this project has discovered that 70 new species of amphibians and reptiles have resettled on its land and by using Dipteryx panamensis as one of the main tree species planted, the project contributes specifically to the survival of this threatened tree species of Costa Rica.

Furthermore, the existence of the project, with people working in these remote areas and promoting environmental education, helps to reduce illegal logging, poaching and animal trading. Finally, the reforestation of fallow and pastureland contributes to protect water catchment areas and improves water quality.

This project is one of the first afforestation/reforestation projects in the world which gained Gold Standard Certification after the launch of the new Gold Standard Land Use and Forests in November 2013.

Solar Lighting Project in Zambia Renewables

23tCO2 offset

£820 payment

This project delivers solar lights to Zambian families living without electricity. This gives them truly affordable, clean lighting for the first time and has life changing impacts. Currently these households rely on dim and sooty kerosene lamps or candles for lighting. This project replaces these polluting lamps with ultra-affordable solar lights.

This exchange alleviates poverty, promotes education, and safeguards the health of families. Crucially, this substitution decreases dependency on fossil fuels, eliminating ongoing fuel costs for low-income households and helping to address climate change.

The project has distributed over 600,000 lights in Zambia since 2021. The carbon revenue generated enables the lights to be sold to rural families at a 50-70% discount on their retail value. This carbon subsidy removes the key barrier to mass adoption of clean technology by those who need it most: affordability.

The lights distributed are multifunctional: they are portable and can be used indoors as desk lamps or hung on the wall, as well as outdoors as a head torch. By distributing the solar lights through schools and other community centres, they enable children to read and study at night with a bright, clean and safe light.

Policy Advocacy for Social & Environmental Standards

We continue to monitor consultations by the UK, Welsh and Scottish Governments for consultations regarding proposed changes to legislation and are actively involved with workstreams through LETI and UKGBC.

Over the last year we have completed Government consultations on the future landscape of legislation in the UK. One such consultation from the Scottish Government: Energy Performance Certificate (EPC) reform asked us to consult on changing the Scottish nondomestic EPC methodology to bring it more into line with Part L in England.

We have long advocated for this change as the Part L method is simpler to bring in a minimum standard of EPC across the board to help decarbonise buildings' heating supply. The change will also assist our Clients by unifying the EPC metrics across the UK.

Staff at KJ Tait are currently volunteering and contributing to the development of LETI and CIBSE’s forthcoming NonDomestic Retrofit Guide. Within the Offices' Modelling team, we play a role in assessing retrofit scenarios tailored to the Offices sector, this is aimed at establishing benchmarks and comprehensive guidelines for the upcoming guide.

Responsibilities entail collaborating closely with professionals in the built environment, including architects, structural engineers, building services engineers, and developers. We are using our combined knowledge to create clear guidelines for redevelopments. The aim is to encourage the industry to retrofit rather than demolish and to understand what has the greatest impact in energy reduction, and by nature reducing embodied carbon impact.

Social

Value

Our 2023 Numbers

Charity Donations £14,982

Charity Donations % of Turnover 0.2%

Abrdn Park Run Heriot Watt University

We sent a team of Richard, Gabbi, Joseph and Owen to compete in a run round Arthur's Seat in Edinburgh organised by our long standing client, abrdn.

Anyone who has ever run round Arthur's Seat will understand it is a challenging course.

More than 250 people that took part in the race with a total of £10,000 raised for Alzheimer Scotland and Street League.

From team KJ Tait, there was only ever going to be one winner with Gabbi taking the spoils, although an honourable mention must go to Richard who, in his 50th year, finished second.

KJ Tait are involved with Edinburgh assisting in multiple to provide students with applications of what they have

One such course is the “Design have assisted multiple students mentor. Our role involves completing the M&E designs building, with a key focus efficient solutions. We regularly to work through and assist including implication of solutions and best practice

University Woodlands Hospital

Heriot Watt University in multiple courses designed experience of real world have learned.

“Design Project” course, we students by being an industry involves assisting the students in designs for a multipurpose on new emerging energy regularly meet with students assist with design solutions, choices; energy efficient practice solutions.

As part of our community support, Gareth from our Manchester office has been partnering with MAPP and the Capital Building in Liverpool to provide MEP Consultancy support on a pro bono basis for The Woodlands Hospice Charitable Trust in Aintree, Liverpool.

The aim is to help the Hospice run their facility more efficiently, reducing energy costs and assisting with their capital expenditure planning to ensure any replacements or upgrades are as efficient as possible for the future.

Governance

Governance

We have recently surveyed our staff to understand how well we are doing as company on key performance indicators. Our goal is to improve on these year on year.

Longevity of Service

Our staff retention remains high with 37% of the company having been with us for over 10 years and 59% of the company over 5 years service. Our ethos has always been to develop graduate engineers from university and we continue to do this alongside the appointment of more experienced engineers.

Our level of retention shows that we are a safe pair of hands with the necessary technical experience to deliver on projects which is exemplified by the level of repeat business that we are able to secure.

Staff Satisfaction

We have surveyed our staff to understand satisfaction with a range of questions with answers being scored out of 10.

We are proud of the scores we have achieved but realise there is work to be done to score even higher next year.

"Would you recommend this organisation as a great place to work?"

"Do you believe our organisation has a higher purpose than money?"

"How much do managers value your feedback?"

Policy Update

Volunteering

3 days for each member of staff each year

Charitable Donations

Adoption Leave 39 weeks Statutory Adoption Pay

In order to make our business more equitable and to align with the values of B Corp, we have been updating our polices around maternity and paternity along with introducing new policies such as volunteering and charitable donations.

Our Business Impact

Our Company exists to reduce the environmental impact of our Clients' buildings. We do this by incorporating the Design Hierarchy on every design project by working with the Design Team, to minimise the energy demand of buildings by passive means.

Our three pillars of Performance, Sustainability and Wellbeing help us in our purpose, to close the performance Gap in Buildings

As part of our B Corp submission, we have calculated our Impact Business Model (IBM) for our previous financial year. The model investigates the revenue generated by KJ Tait for those projects that improve the social or environmental impact of our Clients organisations.

Through our BREEAM and Energy commissions, all of our projects aim to improve the environmental impact of our Clients.

We have also assessed our design and facilities projects and found the majority of these also meet the brief. Over the last 12 months, 57.2% of our revenue has had a direct positive environmental impact for our Clients.

Over the last 12 months, 57.2% of our revenue has had a direct positive environmental impact on our Clients buildings.

Aberdeen | Cambridge | Edinburgh | Glasgow | London | Manchester