Carbon Reduction Plan

Heales Innovation Limited.

1. Commitment to Achieving Net Zero

Heales Innovation Limited is committed to achieving net zero greenhouse gas emissions for Scope 1 and Scope 2 by 2030, reflecting emissions under direct operational control and supporting wider UK Government targets and global climate ambitions.

In parallel, Heales Innovation Limited aims to achieve carbon neutrality across Scope 1, Scope 2 and relevant Scope 3 emissions by 2040 through:

Significant and measurable emissions reductions
Ongoing environmental performance improvement
The use of high-quality carbon offsetting for residual emissions that cannot currently be eliminated

This commitment is aligned with our participation in the SME Climate Hub, under which we commit to:

Halving greenhouse gas emissions by 2030
Achieving net zero emissions before 2050
Reporting progress on an annual basis

2. Baseline Emissions

Baseline Year: 2023

Heales Innovation Limited established its formal carbon baseline in 2023, representing the first year of comprehensive measurement of Scope 1 and Scope 2 emissions, with initial Scope 3 reporting.

Emissions Category	tCO₂e
Scope 1, Scope 2	10.6
Scope 3	5.5
Total	16.1

This baseline was calculated using:

Self Assessed Carbon Footprint via Carbon Footprint Ltd
Utility consumption data (electricity and gas)
Internal monitoring and reporting processes

We recognise that Scope 3 reporting is currently partial and will be expanded over time.

3. Emissions Reduction Targets

Target	Metric	Baseline	Deadline	Interim
Reduce Scope 1 and 2 emissions by 40%	tCO₂e	10.6	2028	6.36 tCO₂e
Achieve net zero Scope 1 and 2	tCO₂e	10.6	2030	Progressive reduction
Achieve carbon neutrality (Scopes 1-3)	tCO₂e	Full footprint	2040	Reduction + offsetting

4. Carbon Reduction Measures

Measure Area	Action	Scope Impact	Impact
Energy and infrastructure	Transition to energy efficient lighting and systems across all sites	Scope 2	Reduces electricity consumption
	Transition one major site to 100% natural renewable electricity (2026)	Scope 2	Significant reduction in Scope 2 emissions
	Monitor and optimise energy usage across sites	Scope 2	Improves energy efficiency and reporting accuracy
	Explore renewable energy generation (solar/wind)	Scope 2	Long-term emissions reduction
Digital Transformation	Remote service delivery model	Scope 1 and 3	Reduces travel emissions
	Digital case management and reporting systems	Scope 1 and 3	Minimises paper use and operational emissions
	Virtual consultations and assessments	Scope 3	Reduces business travel emissions
Travel and transport	Promote public transport and shared travel	Scope 3	Reduces transport emissions
	Electric vehicle salary sacrifice scheme	Scope 1 and 3	Supports transition to low-emission vehicles
	Cycle-to-work scheme	Scope 3	Encourages low-carbon commuting
	Reduce travel through operational planning and route optimisation	Scope 1 and 3	Minimises unnecessary travel
Waste and resource Management	Waste segregation and recycling systems	Scope 3	Reduces landfill waste
	Responsible disposal and refurbishment of IT equipment	Scope 3	Reduces lifecycle emissions
	Reduction in paper use through digitisation	Scope 3	Lowers resource consumption
	Compliance with clinical waste regulations	Scope 3	Ensures safe and compliant disposal
Supply Chain (Scope 3)	Initial measurement of Scope 3 emissions (business travel)	Scope 3	Establishes baseline for reductions
	Identify high-impact suppliers	Scope 3	Supports targeted reduction strategy
	Develop Sustainable Procurement Policy	Scope 3	Embeds sustainability into purchasing
	Engage suppliers on carbon reduction	Scope 3	Enables value chain decarbonisation

5. Planned Carbon Reduction Initiatives

Short term (0-2 years)

Implement formal carbon monitoring system
Deliver carbon literacy training
Improve internal sustainability communication

Medium term (2-5 years)

Expand Scope 3 measurement (commuting, procurement)
Increase renewable energy use across sites
Embed sustainability into procurement decisions
Progress toward ISO 14001 certification

Long term (5+ years)

Full supply chain decarbonisation strategy
Electrification of transport where feasible
Minimise residual emissions prior to offsetting

6. Approach to Carbon Neutrality

Heales Innovation Limited prioritises direct emissions reduction.

Carbon offsetting will:

Be used only for residual emissions
Follow recognised, high quality standards
Reduce over time as reduction opportunities increase

7. Governance

As a business we operate an Environmental Management System aligned with ISO 14001 principles, supported by:

Environmental and Net Zero policies
Senior leadership accountability
Organisation-wide responsibility

Environmental considerations are embedded into:

Operational decisions
Procurement
Staff responsibilities

8. Stakeholder Engagement

Stakeholder	Influence	Impact	Engagement
Staff	High	High	Training, internal communication
Suppliers	High	Medium	Procurement engagement
Leadership	High	High	Governance and oversight

9. Carbon Reduction Trajectory

Emission reduction pathway reflects:

2023 baseline: 16.1 (Scope 1, 2 and 3)
2028: 6.36 tCO₂e (40% reduction in Scope 1 and 2)
2030: Net zero (Scope 1 and 2)
2040 target: Carbon neutrality achieved across Scope 1, Scope 2 and relevant Scope 3 emissions

This represents a realistic and deliverable pathway, focused on emissions within organisational control.

10. Declaration

This Carbon Reduction Plan has been prepared in accordance with:

PPN 06/21
Greenhouse Gas Protocol Corporate Standard

The plan will be reviewed annually to ensure:

Progress against targets
Continuous improvement
Alignment with best practice

Signed on behalf of Heales Innovation Limited