Intertek: Intertek : Report (intertek sustainability report 2024)

THE POWER OF AMAZING Sustainability Report Annual Report & Accounts 2024 We are pleased to share with you our Annual Report & Accounts in a unique, three-report format: Report 1: Strategic Report Where we discuss our growth opportunities and strategic performance. Report 2: Sustainability Report Where we discuss our environmental, social and governance progress. Report 3: Financial Report Where we record our financial activities, performance and position. These separate, but connected reports, with their interconnected themes and narratives, allow us to present what we achieved in 2024 in a systemic, end-to-end architecture. They have been designed to make it easier for our stakeholders to fully understand our business, how we bring quality, safety and sustainability to life, what we offer our clients and society, and the opportunities we have ahead of us. VISIT: INTERTEK.COM/INVESTORS Contents 2.01 Chief Executive Officer's sustainability letter 2.07 Our approach Our Sustainability Excellence strategy Sustainability performance Directors' report 2.61 Governance at a glance Compliance with the UK Corporate Governance Code Governance structure Chair's introduction Board of Directors Group Executive Committee Board leadership and company purpose Composition, succession and evaluation Audit, risk and internal control Committee reports Nomination Committee Report Audit Committee Report 2.94 Remuneration Committee Report 2.127 Other disclosures 2.131 Statement of Directors Responsibilities THE POWER OF AMAZING The power of amazing lies in the energy and passion of our incredible colleagues and the work they do every day. At Intertek, we constantly strive to be ever better. For over 130 years, we have been pioneers, lighting the way with ingenious solutions that touch every part of modern life. Our culture empowers our people and creates sustainable growth and value for all our stakeholders. Our caring and trusted people live by our Values, working with passion and integrity to make a real difference. Their energy and commitment ensure our customers become ever more resilient, and that we all thrive and work together to make the world better, safer and more sustainable. Chief Executive Officer's sustainability letter THE AMAZING POWER OF SUSTAINABILITY EXCELLENCE I would like to highlight the contribution of our truly amazing people, who once again have delivered an exceptional performance for our company, our clients, our shareholders and society as a whole." André Lacroix Chief Executive Officer 2.01 Intertek Group plc Annual Report & Accounts 2024 1: Strategic Report 2: Sustainability Report 3: Financial Report As a leading Total Quality Assurance ('TQA') provider to industries worldwide, Intertek plays a critical role in ensuring the quality, safety and sustainability of products and processes. Our global reach and expertise across every industry enable us to make a significant positive impact on the world around us. Sustainability is central to all we do at Intertek and is anchored in our Purpose, Vision, Values, and strategy. I am delighted to report that in 2024 we delivered another year of progress on our Sustainability Excellence agenda. I would like to extend my heartfelt thanks to my colleagues at Intertek for their tireless efforts in helping to create an ever better world for current and future generations. By working hard to meet the expectations of, and create sustainable value for, all stakeholders, we continue to be an amazing force for good in the world, working collectively to unleash the power of our high-performance 10X culture and amazing people. Sustainability Excellence is vital to Intertek and our people as it reflects our dedication to creating a positive impact on the environment and society. This commitment drives long-term value for all stakeholders, including customers, employees, shareholders and the communities where we operate. Our main areas of focus include reducing carbon emissions, ensuring employee safety and wellbeing, fostering employee engagement and development, promoting diversity and inclusion and supporting local communities. Over the years, we have made significant progress through various initiatives, demonstrating our unwavering commitment to sustainability and our ability to adapt and provide innovative sustainability solutions in response to global challenges that support our customers in their own sustainability journeys. Together, we are making a difference and paving the way for a sustainable future and a truly amazing world for all stakeholders. Chief Executive Officer's sustainability letter Continued Sustainability is central to Intertek As a purpose-led company, we have embedded sustainability deeply in: Our Purpose Bringing quality, safety and sustainability to life. Our Vision To be the world's most trusted partner for Quality Assurance. Our Values We are a global family that values diversity. We always do the right thing. With precision, pace and passion. We trust each other and have fun winning together. We own and shape our future. We create sustainable growth. For all. 2.02 Intertek Group plc Annual Report & Accounts 2024 1: Strategic Report 2: Sustainability Report 3: Financial Report Sustainability highlights Levels of Hazard Observations increased for the fifth consecutive year, reflecting greater levels of activity across our sites as well as greater awareness and reporting of health and safety overall. Since 2015, we have used the Net Promoter Score ('NPS') process to listen to our customers, enabling us to improve our customer service over the years consistently. In 2024, we conducted on average 6,036 NPS interviews per month. We are driving environmental performance across our operations through science-based reduction targets to 2030. By optimising energy use in our offices and laboratories and transitioning to cleaner energy sources, we reduced our operational market-based emissions by 16.7% against 2023 and 47.2% against our base year 2019. In 2024, we conducted a preliminary Double Materiality Assessment ('DMA') to help us meet regulations. We recognise the importance of employee engagement in driving sustainable performance for all stakeholders, and we measure employee engagement against our Intertek ATIC Engagement Index. In 2024, we achieved a new high score of 91 (2023: 87). Our voluntary permanent employee turnover improved to a five-year low rate of 11.2% in 2024 (2023: 12.3%). Chief Executive Officer's sustainability letter Continued 1: Strategic Report 2: Sustainability Report 3: Financial Report Leading the way in Sustainability Excellence We apply the concept of Sustainability Excellence across all our operations worldwide, holding ourselves to the same high standards to which we hold our customers. For Intertek's Sustainability Excellence programme, we focus on the ten highly-demanding standards which are part of our Total Sustainability Assurance ('TSA') programme. These standards are truly end-to-end and systemic and encompass all aspects of what we know to be a truly sustainable organisation, covering every aspect from quality and safety through to communications and disclosures. The ten TSA standards were created to align with the United Nations Sustainable Development Goals ('UN SDGs'). READ MORE ABOUT TOTAL SUSTAINABILITY ASSURANCE ON PAGE 2.09 Our new Sustainability Policy During 2024 we introduced a new Sustainability Policy, which defines our standards, principles and policies, as well as our operating practices and relationships with our main stakeholders. The policy is designed to provide every Intertek company and business unit in every country where we operate with a robust framework for embedding and strengthening socially and environmentally responsible behaviour and practices. Our responsibility in action As I reported last year, in 2023 we received target validation from the Science-Based Targets initiative ('SBTi') for reducing scope 1, 2 and 3 emissions (business travel and employee commuting) by 50% before 2030, taking 2019 as the base year. SBTi also validated our commitment to ensuring that 70% of our suppliers by spend have science-based targets in place by FY2027. Over the last year, we have made good progress towards meeting these targets. I am also pleased to report that during the year we completed a preliminary DMA, to help us meet upcoming regulations. Double materiality addresses both financial and impact materiality. This approach expands on the single materiality concept by requiring companies to assess not only how sustainability issues impact their financial performance but also how the company's operations affect society and the environment. You can read more about the DMA on page 2.07. Our DMA will be assessed regularly to provide a fuller picture of Intertek's role and responsibilities in a broader societal context and will ensure that we continue to identify evolving areas of priority or concern for our stakeholders. READ AND DOWNLOAD OUR SUSTAINABILITY POLICY AT INTERTEK.COM/ABOUT/OUR-RESPONSIBILITY 2.03 Intertek Group plc Annual Report & Accounts 2024 Chief Executive Officer's sustainability letter Continued 1: Strategic Report 2: Sustainability Report 3: Financial Report Reducing the environmental impact of our operations One of the most notable accomplishments in 2024 was our significant reduction in carbon emissions. By optimising energy use in our offices and laboratories and transitioning to cleaner energy sources, we successfully reduced our operational market-based emissions by 16.7% against 2023 and 47.2% against our base year 2019. We also extended our third-party assurance beyond greenhouse gas ('GHG') emissions data to include some of our key non-financial KPIs: Total Recordable Incident Rate ('TRIR'), customer satisfaction via NPS surveys, employee retention and compliance training across the organisation. READ THE FULL ASSURANCE STATEMENT IN THE STRATEGIC REPORT ON PAGES 1.74-1.7